The revised Guiding Principles address ESG expectations and trends in the automotive supply chain. Circularity, carbon neutrality, animal welfare, biodiversity, land use, and deforestation are included. This version provides more detailed guidance for all partners.

Ford joined other major automotive manufacturers globally, along with the Automotive Industry Action Group (AIAG) and Drive Sustainability, to make needed changes and additions to the “Automotive Industry Guiding Principles to Enhance Sustainability Performance in the Supply Chain.” The revised document addresses the latest environmental, social and governance (ESG) expectations and trends in the automotive supply chain. 

 “A company with Ford’s scale can really influence the supply chain and business practices across our entire industry. It is so important that we not only think about how Ford can use our purchasing power to fuel our business needs, but also to advance sustainability.”

- Sue Slaughter, Ford Purchasing Director, Supply Chain and Sustainability

The revised Guiding Principles document now includes sections on circularity, carbon neutrality, animal welfare, biodiversity, land use and deforestation. A companion piece to the Guiding Principles, the supplementary “Global Automotive Sustainability Practical Guidance” has also been updated to better reflect current legalities and practicalities of meeting industry expectations.

“Recent and emerging legislative mandates, coupled with the ongoing complexity of today’s global supply chain, make these revisions to the Guiding Principles more vital than ever,”

said Tanya Bolden, AIAG Director of Corporate Responsibility and Supply Chain Products & Services, in a prepared statement. This latest version provides more thorough guidance to support supplier partners at all tiers, she explained.

Stefan Crets, facilitator of Drive Sustainability, added:

“The engagement between automotive companies and their suppliers becomes a real force for the sustainability transformation.” 

Source: Ford news