The world’s largest automakers release responsibility and sustainability expectations for suppliers

Two leading corporate responsibility business associations, AIAG and CSR Europe recently reached agreement among 14 global automakers on a set of standards outlining expectations for suppliers on key responsibility issues including human rights, environment, working conditions, and business ethics.

Participating members aligned with “The Automotive Industry Guiding Principles to Enhance Sustainability Performance in the Supply Chain” include BMW Group, Chrysler Group LLC., Daimler, Fiat S.p.A., Ford, GM, Honda, Jaguar/Land Rover, PSA Peugeot Citroen, Scania, Toyota, Volkswagen, Volvo Cars, and Volvo Group.

As the companies collectively state in the Guiding Principles, “People and the environment are the automotive industry’s most important resources. For this reason, we are working together to attain the highest standard in business integrity and in the social and environmental performance of our supply chain.…The following guidelines clearly describe our expectations towards business ethics, working conditions, human rights, and environmental performance, for our suppliers as well as their subcontractors and suppliers. We expect that suppliers will uphold these standards and cascade them down their supply chain.”

The guidelines, which are based on the fundamental principles of social and environmental responsibility that are compliant with local law and consistent with international expectations, were first developed by AIAG in 2009 in collaboration with Ford, GM, Chrysler, Honda, and Toyota.

“With a singularity of purpose and a common voice, the key players in our industry are collaboratively reinforcing the individual commitments each has made to doing business in a socially and environmental responsible way,” says AIAG Executive Director J. Scot Sharland. “Automakers and suppliers of all sizes face heightened compliance and extended responsibility expectations, from materials sourcing, handling, reporting, and disposal requirements to improving factory working conditions, so it’s imperative that we work together to develop, socialize, and deploy industry best practices on a range of issues for our global supply chains.”

“We built on the guidelines that AIAG and its member companies had established, expanding the principles and messages so they would apply to the broadest possible range of suppliers. This allows us to drive the sustainability agenda in the automotive sector even further,” says CSR Europe Executive Director Stefan Crets.

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