MT Magazine September/October 2023

THE ENERGY ISSUE

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The latter approach is usually from people who see doing things “green” as yet another thing they have to do – when they are already busy enough without adding more tasks and activities to what they are trying to accomplish. But implementing practices that minimize or eliminate (e.g., through different practices or via offsets) things like carbon in production materials and processes is becoming a requirement for suppliers at several companies that are working toward zero emissions in their own production operations. From Audi to Whirlpool, an ever-increasing number of global manufacturers are making zero-carbon pledges. Whirlpool has stated that it is committed to achieving “Net Zero impact of our operations by 2030 and creating shared value throughout the product life cycle.” And these companies aren’t just considering becoming carbon neutral within their own operations; this also includes suppliers. Audi has stated: “In 2025, on average, around 25 percent of total emissions that an Audi car will produce during its life cycle will be generated in the supply chain. To offset this, the company launched an ‘Audi CO2 program in the supply chain’ back in 2018. Together with suppliers, the program identified measures for CO2 reduction in the lower stages of the value chain.” Hard to imagine how they could emphasize suppliers more. The point is, while global companies are making it clear that they are committed to carbon neutrality, they are also making it mandatory that suppliers support those efforts. This Is Serious Ford, for example, has published the Ford Supplier Code of Conduct that explicitly states requirements that every supplier must meet, including: • “Know and follow this Code and align company policies to reflect these requirements.” • “Enforce a corresponding code of practice and require that subcontractors and suppliers do the same.” Which means that even second- and third-tier suppliers are included. And the company is serious about this. It states in large letters and bold type that suppliers must: • “Comply with or exceed Ford’s environmental requirements and policies, including all relevant Want to be a supplier to Ford? Then keep in mind that within the Ford Supplier Code of Conduct, you’ll find a requirement that states: “Eliminate waste.” Most major global manufacturers are committed to becoming carbon-neutral, and that extends to the activities of their suppliers. (Image: Ford)

national, regional, environmental, and chemical legislation.” • “Minimize their impact on climate change aligned with the United Nations Framework Convention on Climate Change (Paris Climate Agreement), striving towards carbon neutrality.” • Reduce, reuse, recycle materials in manufacturing. • “Achieve continual environmental improvement in manufacturing operations.” And there are details describing what is expected. What’s Expected Or take Boeing, which has more than 11,000 Tier 1 suppliers. In the company’s Supplier Code of Conduct, it states – and it is worth quoting at length because it underscores the importance the company places on the environment: “We expect suppliers to conduct their business in a manner that actively manages environmental risks across their operations, products, and supply chain.

“Suppliers are expected to establish an appropriate environment management system (e.g., ISO 14001 or equivalent), including policies and procedures aimed at effectively managing their environmental performance, and integrating environmental considerations into their product design or service. “Boeing considers climate change to be an urgent issue and expects suppliers to innovate in order to reduce the impact of The X-66A research aircraft from NASA and Boeing is part of the Sustainable Flight Demonstrator Project. It will be built using a modified MD-90. Not only is Boeing working with NASA to help develop aircraft that allow airlines to cut aviation greenhouse gas emissions, but the company expects its suppliers to innovate to reduce the impact of their processes and products on the environment. (Image: Boeing)