Automotive Industry Leaders Launch “Transform: Auto” Program to Help Suppliers Add Renewable Energy and Reduce Emissions
The program is sponsored by Ford, General Motors, Honda, Magna and Toyota, in collaboration with the Suppliers Partnership for the Environment
WASHINGTON, DC, September 18, 2024 – Suppliers Partnership for the Environment (SP), an association of global automakers and their suppliers, in partnership with sustainability and energy advisory company Trio (formerly known as Edison Energy), has announced the “Transform: Auto” program, aimed at driving the adoption of renewable energy across the automotive supply chain.
Emissions accounting can be separated into three different scopes. Scope 1 emissions come from sources owned by a company, Scope 2 are the indirect emissions from purchased electricity, and Scope 3 are indirect emissions from the supply chain and use of sold products. The program, developed by Trio and initiated in collaboration with founding sponsors Ford Motor Company, General Motors, Honda Development & Manufacturing of America, Magna and Toyota Motor North America, aims squarely at reducing Scope 3 supply chain emissions in the global automotive industry, by providing automotive suppliers with tailored guidance and dedicated expert support to help facilitate the procurement of renewable energy to reduce their Scope 2 emissions.
Earlier this year, SP announced the expansion of a collaborative effort with Manufacture 2030 (M2030) and these industry leaders to engage nearly 20,000 supplier manufacturing sites in a more standardized approach to collecting supply chain emissions data.
Complementary to this effort, the Transform: Auto program - which is being made available at no cost to Tier 1 suppliers of Ford, GM, Honda, Magna and Toyota and SP member companies – is designed to help suppliers reduce indirect emissions from energy consumption, known as Scope 2 emissions.
Transform: Auto is custom-built to meet these suppliers where they are to help reduce emissions on their respective decarbonization journeys. The program will help suppliers explore renewable energy options and give them the tools to pursue a renewable energy pathway on their own or through an organized cohort of suppliers. In the first year of the program, Transform: Auto will support suppliers in procuring renewable energy in North America through voluntary green tariffs, onsite solar, community solar, utility-scale renewable energy power purchase agreements, and environmental attribute certificates. The program will launch this fall.
Increasing the use of renewable energy to reduce emissions is a key part of pursuing the founding sponsors’ goals of achieving carbon neutrality. The impact of any one of the individual sponsors’ Scope 3 purchased goods and services emissions can be 10 to 20 times greater than their own Scope 1 and 2 emissions. This collaboration provides an opportunity to maximize collective impact at scale while improving efficiencies across the value chain.
About Suppliers Partnership for the Environment
Suppliers Partnership for the Environment (SP) provides a forum for global automotive manufacturers and their large and small suppliers to work together toward a shared vision of an automotive industry with positive environmental impact. Learn more at: www.supplierspartnership.org
About Trio
Impact. Together. Trio is a global sustainability and energy advisory company that helps large commercial, industrial and institutional organizations navigate the clean energy transition. Trio provides integrated strategy and implementation services – in sustainability, renewables, energy procurement, conventional supply, energy optimization and transportation electrification – to help the world’s largest organizations meet their strategic, financial and sustainability goals. Visit trioadvisory.com
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