Drive Plus and Drive Sustainability Boost Efforts to Strengthen Sustainability Standards in the Automotive Industry

 
  • At the workshop hosted by CSR Europe on June 13, Original Equipment Manufacturers and Tier-1 Automotive Suppliers agreed to work on pilot projects on supply chain mapping tools, promote cross-recognition of various ESG standards, and develop a common Grievance Escalation Platform.

 
 
 

On 13th June, leading players in the automotive industry agreed to intensify collaborative efforts aimed at enhancing the social, ethical, and environmental performance of their supply chain at the workshop.

In the second half of 2024 and along 2025, Drive Plus Tier-1 Automotive suppliers and Drive Sustainability Original Equipment Manufacturers (OEMs) will focus on:

Pilot projects on Supply Chain Mapping tools

Representatives from OEMs and suppliers are collaborating to evaluate market-available solutions for achieving comprehensive traceability within the supply chain. The objective of this pilot initiative is to establish and refine a framework that safeguards the confidentiality of commercial information while enabling transparency across the supply chain. This will equip companies with the necessary tools and data to demonstrate compliance with European and international supply chain legislations. A key priority for the group is to ensure that the solutions developed do not impose redundant or unilateral demands on suppliers.

Promotion of cross-recognition between different ESG standards

The industry has experienced a steady increase and redundancy in ESG assessment frameworks, tools, and questionnaires. In response, Drive Sustainability and Drive+ have consistently advocated for greater alignment within the automotive industry, particularly in the areas of sustainability strategy and assessment. Currently, Drive Sustainability and Drive+ are collaborating with international organizations to harmonize existing assessment tools and establish common practices aimed at reducing bureaucratic burdens for suppliers.

The development of a common Grievance Escalation Platform

Drive Sustainability and Drive+ are jointly developing a unified escalation platform for collaboratively addressing severe grievances within their supply chain. Upon escalation of a grievance through an individual company’s channel, the company may submit the issue to the Drive Sustainability and Drive+ platform. This platform will assess whether the grievance involves other member companies and will facilitate and support the formulation and implementation of a collective remediation strategy.

Drive Plus and Drive Sustainability recognise that meeting forthcoming legislations - such as the EU Battery Regulation (EUBR), the EU Deforestation Regulation (EUDR), the Corporate Sustainability Due Diligence Directive (CSRD), and the U.S. Uyghur Forced Labor Prevention Act (UFLPA) – requires robust engagement and cooperation across the industry ecosystem through closer partnerships and common actions.

At the workshop held on 13th June, members of both platforms agreed to this direction to better anticipate and prepare for both upstream and downstream sustainability requirements, as well as to enhance transparency and accountability.

The event took place in the context of the Drive Plus Annual meeting and quarterly Drive Sustainability Steering Committee meeting, where OEMs representatives decide on budget allocation and strategic activities.

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