The Suppliers Partnership for the Environment (SP), an organization uniting global automakers and their suppliers, has launched the “Transform: Auto” program in collaboration with sustainability and energy advisory company Trio. This initiative is designed to significantly accelerate the adoption of renewable energy throughout the automotive supply chain.
The program, which is being offered free of charge to Tier 1 suppliers of Ford, GM, Honda, Magna, and Toyota as well as SP member companies, focuses on reducing Scope 3 supply chain emissions, specifically targeting indirect emissions from energy consumption (Scope 2 emissions). It provides tailored guidance and expert support to help suppliers procure renewable energy sources.
The Transform: Auto program recognizes that the impact of a single automaker’s Scope 3 emissions from purchased goods and services can be 10 to 20 times greater than their own Scope 1 and 2 emissions. This collaboration offers a unique opportunity to maximize collective impact while improving efficiencies across the value chain.
The program will initially support suppliers in North America by offering various renewable energy options, including:
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Voluntary green tariffs
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Onsite solar
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Community solar
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Utility-scale renewable energy power purchase agreements
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Environmental attribute certificates
Transform: Auto is designed to meet suppliers at their respective decarbonization maturity levels, offering the tools and resources needed to pursue a renewable energy pathway. This can be done individually or through organized cohorts of suppliers.
“Ford is proud to invest in Transform: Auto, which will provide suppliers with tailored guidance and expert support to help them reach carbon-neutrality targets,” said Ford Chief Supply Chain Officer Liz Door. “It’s a testament to Ford’s belief in the power of collaboration to move the automotive industry – OEMs and suppliers alike – toward a more sustainable future.”
GM Director of Global Energy Strategy Rob Threlkeld emphasized the importance of collaboration: “GM recognizes that to truly make a significant impact, we need to collaborate and scale our efforts across the entire supply chain. That is why we are thrilled to enter this collaboration, as it presents an exciting opportunity to work together to support reductions in supply chain emissions. By joining forces, we can help support a resilient and sustainable future towards a zero-emissions transportation sector.”
Honda, Magna, and Toyota also expressed their commitment to achieving carbon neutrality and the vital role Transform: Auto plays in their efforts.
“Increasing use of renewable energy through the supply chain is a key lever in the industry’s journey toward carbon neutrality,” said Kellen Mahoney, Director of Suppliers Partnership for the Environment. “Transform: Auto has been designed to support automotive suppliers of all sizes in this effort by providing educational resources tailored to different decarbonization maturity levels, while increasing supplier access to renewables through the offer of expert support and facilitated renewable energy aggregation opportunities.”
The program will launch this fall, aiming to significantly reduce emissions and pave the way for a more sustainable automotive industry.
