This briefing examines different sources of risk and opportunities within automotive value chains that can affect the financial and ESG performance of investments. It also provides guidance and recommendations for investors on how to proactively engage automotive companies on effective supply chain ESG management.
This report is based on an analysis of the second edition of the Lead the Charge Leaderboard, which assessed 18 of the world’s leading automakers against over 80 indicators that evaluate their efforts to eliminate emissions, environmental harms, and human rights violations from their supply chains.
This assessment is published as a standalone assessment to facilitate its use as a tool for automakers, and other automotive supply chain stakeholders, in order to make informed decisions regarding their use of these accreditation schemes for the mining sites, smelters, refiners, steel and aluminum plants and other facilities in their supply chains.
Lead the Charge is a collaborative new initiative bringing together diverse local, national, and global organizations calling on automakers to radically transform their supply chains to be equitable, sustainable and 100% fossil free.
Supply chain transformation is a risk management imperative and opportunity for a competitive edge. Leading brands are already securing a first-mover advantage and leveraging their power to transform legacy supply chains into a force for good. The revolution is underway.
On August 01 2024, Stellantis approved a standalone company policy on Free, Prior and Informed Consent, becoming the first automaker to approve a standalone policy on this issue. The policy states that “The protection of Indigenous Peoples’ rights aligns with our core values of ethics and integrity, and our fundamental commitment to social responsibility. We believe, however, that the implementation of our FPIC policy also serves to reduce the potential for conflicts and legal disputes, fostering trust, positive relationships, and long-term operational stability in the communities where we are present.”
Global automakers Honda and Mercedes are facing allegations that they have engaged in illegal union-busting activities in the U.S. Honda has been accused by the National Labor Relations Board of violating the rights of workers at a Greensburg, Indiana, factory by illegally cracking down on union organizing. Mercedes, meanwhile, has been accused by the UAW of engaging “in a relentless anti-union campaign” including the firing of employees who were pro-union and holding frequent captive-audience meetings to spread anti-union views, according to the filing.
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