Ten car firms identify raw materials sourcing issues

Drive Sustainability, a partnership between 10 car companies is to set up a Raw Materials Observatory to identify ethical, environmental, human and labour rights issues in the sourcing of raw materials.

Drive Sustainability has already been working on improving the sustainability of the raw materials supply chain – image courtesy of Pixabay.

The automotive companies include: BMW Group, Daimler AG, Ford, Honda, Jaguar Land Rover, Scania CV AB, Toyota Motor Europe, Volkswagen Group, Volvo Cars and Volvo Group.

Drive Sustainability has already been working on improving the sustainability of the automotive supply chain for the past five years.

This new initiative represents the next step in their global commitment to ensure business ethics, respect for the environment and human rights, and decent working conditions within the supply chain.

This common approach complements individual activities performed by each company, with a common goal towards worldwide sustainability.

Representatives from around 70 automotive companies, automotive suppliers, NGOs and EU institutions were invited to Brussels today to discuss the approach surrounding the observatory.

Drive Sustainability presented the initiative and gathered feedback from stakeholders, to understand their views and expectations on the responsible sourcing of raw materials.

Stefan Crets, executive director of CSR Europe, which coordinates this partnership, said: “The Raw Material Observatory will assess the risks posed by the top raw materials (such as mica, cobalt, rubber, leather and others) in the automotive sector.

“This will allow Drive Sustainability to identify the most impactful activities to pursue in order to address the human, ethical and environmental issues within the supply chain.”

This complements individual approaches to integrating sustainability in raw materials sourcing, undertaken by automotive companies.

The risk assessment of the top raw materials will be conducted by The Dragonfly Initiative – a specialized sustainability advisory firm.

Based on its results (ready by January 2018) and on the input received from stakeholders, Drive Sustainability will unveil its action plan to address these risks at the beginning of 2018.

Drive Sustainability was founded as a partnership five years ago. Its member companies have been working together since to drive sustainability throughout the global automotive supply chain. This was initially done through adopting common sustainability principles.

To implement these principles, Drive Sustainability has designed a common approach to monitor compliance and promote the principles through the procurement process, to organise capacity building actions such as supplier trainings and local supplier networks.