This module assesses the level of engagement that the company has with its suppliers, based on an assessment of ‘demonstration’ that shows whether or not the company engages with suppliers in various ways.
Groupe PSA and Toyota top this module ranking. Both Groupe PSA and Toyota have used supplier engagement strategies to successfully drive down supply chain emissions. Groupe PSA requires suppliers to reduce emissions in line with a 2-degree pathway. It must be noted that the top performing companies on supplier engagement are not fully aligned with the low-carbon scientific benchmark. Both companies do collaborate with suppliers on research and development in some capacity, but neither has demonstrated a proven track record of emissions reductions in their sold products due to such supplier collaboration.
Ford Motor Company, General Motors Company, Nissan Motor Co., Ltd., Tata Motors and Mazda Motor Corporation all tie in second place in this module ranking. All of these companies collect information about suppliers’ emissions, either through an internal platform and processes (Tata, Mazda) or through the CDP Supply Chain Program (Ford, General Motors & Nissan), and require year-on-year emissions reductions from their key suppliers as well as progress on other key performance indicators. These five companies lack evidence of research and development with suppliers.
More than half of the companies assessed (13) are tied at third place in this module ranking. These companies are engaging suppliers on climate-related issues but have no evidence of driving emissions reductions throughout the supply chain.
The final cluster of companies in this module ranking is in fourth (or last) place. These are the Chinese companies BAIC Motor Corporation Ltd; Chongqing Changan Automobile Company Ltd; FAW Car Company Limited; and Geely Automobile Holdings Limited; as well as Hyundai Motor Corporation. The Chinese companies are engaging their suppliers on environmental issues but the central focus is pollutant emissions, as opposed to climate change and GHG emissions. Similarly, Hyundai is engaging suppliers, but largely on product quality and development of supplier research and development capacity, as opposed to climate change issues and GHG emission reductions.