ANNOUNCEMENTS
The project titled "Supply Chain Sustainability - Automotive Sector" by Hans Malik explores the critical role of sustainability in the automotive supply chain, particularly in the context of the Indian automotive industry. It emphasizes that corporate sustainability encompasses long-term value creation across financial, social, and environmental dimensions, with supply chain sustainability focusing on managing impacts throughout the lifecycle of products.
The automotive sector is a significant contributor to carbon emissions, with transportation accounting for over 16% of total emissions in India. The project highlights the urgent need for sustainable practices, especially as the industry transitions to electric vehicles (EVs), which shift emissions responsibility to the supply chain. The report outlines the complexities of the automotive supply chain, which includes multiple tiers of suppliers and emphasizes the importance of integrating sustainability into operations.
Key components of the project include the development of a Supplier Assessment Questionnaire (SAQ) to evaluate suppliers' sustainability practices, categorizing them based on performance, and creating a Supplier Sustainability Roadmap. This roadmap aims to enhance engagement with suppliers, promote capacity building, and ensure continuous improvement in sustainability practices.
The project also addresses the challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in adopting green practices due to financial constraints. It proposes mechanisms such as green finance programs and incentive structures to support these suppliers in their transition to sustainable operations.
In conclusion, the project advocates for a collaborative approach among Original Equipment Manufacturers (OEMs), suppliers, and financial institutions to foster a sustainable automotive supply chain, ultimately contributing to reduced environmental impact and enhanced social responsibility within the industry.
