An innovative partnership between automakers, their suppliers and the US Environmental Protection Agency (EPA)

to identify and implement creative projects and programs that will advance environmental sustainability while

providing economic value to the automotive supply chain.

SP MEMBERS & LIAISONS

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Forum for OEMs and suppliers to work together to develop projects and activities focused on sustainability issues impacting the auto supply chain through member driven Work Groups. SP meetings provide opportunities for members to network, to learn about issues and activities impacting the environment and their business operations, and identify emerging areas for action by SP. Network for companies to share and benefit from environmental best practices, tools and resources on a North American basis. A truly unique aspect of SP is its partnership with the US EPA, which helps provide SP with topics for special projects, information, approaches and tools. More importantly, SP provides a forum for member companies and the EPA to work in collaboration to achieve common environmental goals. SP is constantly working to identify new, innovative and more environmentally sustainable ways to enhance the viability and competitiveness of the automobile industry through the supply chain.

Chemical Issues Management Work Group Energy and Water Efficiency Work Group Materials Efficiency Work Group North American Work Group Technology and Networking Work Group Southern Supply Chain Network

SP Focus Areas

CHEMICAL ISSUES MANAGEMENT

Chair:

David Woodyard, Global Manager, Sustainability,

The Goodyear Tire & Rubber Company

“Goodyear participates in the Suppliers Partnership for the Environment as an important means for helping us build our sustainability foundation.”

David Woodyard, Global Manager, Sustainability, The Goodyear Tire & Rubber Company

Provides a forum for discussing emerging chemical issues

of potential impact to automotive manufacturers and the

supply chain.

Creating a Materials Assessment Strategy (MAS) to

develop a common health and environmental hazard,

exposure and risk screening process for chemicals in

vehicle parts/processes. Current phase focused on End of

Life Vehicle Materials.

Drivers

ENERGY & WATER EFFICIENCY

Chair:

Michael Lehmann, Executive Director, Global Industrial Solutions, Global Workplace Solutions, Johnson Controls, Inc.

Paul Spelman, Board Member / New Business, Universal Fibers

“The concept of having suppliers align their goals and strategies with their customers is right on target. Until now, it has been extremely difficult for suppliers, particularly smaller suppliers, to get an accurate understanding of what OEMs were seeking relative to environmental initiatives. The paradigm shift we see today exists when individuals and organizations, such as Chrysler, see the value of collaborating with large and small companies such as Chemico Systems. Our experience participating in this organization has been tremendous.”

Leon C. Richardson, President and CEO Chemico Systems, Inc.

Supports ongoing discussions and action between automakers, their suppliers, and

government entities on energy and water issues affecting the operations of

companies in the automobile supply chain.

Piloting energy management program focused on driving energy efficiency through

the supply chain using benchmarking, process capability analysis and best practice

sharing to improve energy efficiency and industry competitiveness.

Collecting and sharing information among participating SP members to enhance the

ability of companies in the automobile supply chain to improve the use and potential

re-use of water in their manufacturing activities.

SP Energy Supply Chain Pilot Program – What is it?

• Seeking a coherent approach to supply chain energy reduction at strategic,

budgetary, and operational levels.

• Approach has 3 stages

• LEAN Bench-marking – early supply chain guidance at full participant level

• Energy Strategy Session – at both participant and supplier partnership

• Preliminary Audit – more focused site based at LIMITED participant level to seek

common FIM’s

• CLOSE THE GAP – Build awareness of common supply chain energy facility

improvement categories to broadly optimize supply chain energy consumption.

The Suppliers Partnership pilot is intended to explore and validate a tools based programmatic process towards garnering supply chain energy opportunity.

MATERIALS EFFICIENCY

Chair:

John Bradburn, Manager of Waste Reduction Efforts, General Motors

“Our companies' ability to compete has been greatly improved by the opportunity to be part of SP. We have taken the environmental impacts of our company and learned to address them like all the other traditional elements that impact our business. The result has been tremendous savings to the company, improved employee empowerment and a significant improvement to our environmental footprint. By working closely with GM, Lear and the other partners, BAE has become more competitive and truly developed a partnership with the ‘big guys.’ That kind of partnership was almost impossible in the past. Where else can you get the clout of the OEM's on the budget of a small supplier.”

Mark Doetsch, Vice President – Quality BAE Industries, Inc.

Developing and deploying environmental technologies and programs in order to reduce environmental impacts, gain financial value, as well as promote environmental sustainability. Identifying ways to provide value within the automotive supply chain by working together to reduce waste, promote reuse and maximize recycling.

Success Story – SP Member Collaboration

Heritage Environmental Collects Booms

Mobile Fluid Recovery

Extracts Oil and Wastewater

GDC Inc. Produces Volt Components

GM Installs Parts in Chevrolet Volt

GDC Inc. Produces Sonozorb™ Acoustical Material

and Parts for GM

Boom Manufacturer

Trim Scrap is Sent to be stuffed into

Absorbent Booms

Gulf Oil Booms Find New Life in

TECHNOLOGY & NETWORKING

Co-Chairs:

Russell Brynolf, CEO, FTS Technologies

David O’Ryan, Director of Corporate Planning & Strategy, MIWI

“SP provides my company, and all other member companies, a unique forum to discuss and collaborate on ideas, projects, and initiatives that can be used to benefit everyone in the industry. Each member company has something to offer, whether it’s a product or a service. Maybe that individual product or service is all that’s needed to have a meaningful environmental impact and the forum of companies provides the means to communicate it to the right people. Or, as in most cases, a collection of companies realize the unique benefits each one offers and collaborate to produce the product or service needed to satisfy and particular need. Combining forces enables new ideas and technologies to have a meaningful impact up and down the supply chain, improving environmental impact, improving manufactured products, and improving relationships between huge OEMs and relatively small companies like FTS Technologies… It’s the only group I’m aware of that breeds success every week, month, and year. Russell Brynolf, CEO, FTS Technologies

Providing a forum through which member companies share opportunities and processes for SP's smaller-sized companies to communicate directly and efficiently with the OEMs and Tier I suppliers in the organization and automotive industry.

SUCCESS STORY – FTS TECHNOLOGIES

Need: FTS Technologies had been striving to drive the implementation of an energy-efficient flame treatment technology that lets paint adhere to plastic vehicle parts, such as instrument and door panels. Solution: Through SP networking opportunities, FTS was able to convey the benefits and get connected with the right people at GM so this technology could make a broader impact within the industry.

Outcome: By using the new process on the Chevy Cruze, for example, GM suppliers: • Reduced solid and liquid waste (filters, cleaners, solvents and

coatings) from 48 tons a year to less than 1 ton. • Decreased air pollutants from 810 tons a year to 80 tons a year. • Eliminated landfill waste like paint sludge and painted scrap

material from 25 tons to nearly zero.

FTS was awarded GM’s 2012 Environmental Excellence Award for its work in helping GM’s supply base reduce waste and emissions through this technology. FTS has also received environmental awards from Chrysler and US EPA for its technology.

TECHNOLOGY: ACCELERATING INNOVATION

Enabling Innovation Building the Business Climate Securing the Talent Pipeline

1) Create internal innovation committees to

break organizational silos

2) Align innovation strategy with

sustainability strategy

3) Create a Chief Innovation Officer (CIO)

with C-level responsibility for innovation

4) Develop collaborative supplier

partnerships focused on driving

innovation

5) Use economic metrics to drive

sustainability forward

6) Incorporate age diversity upon

introducing new technology

1) Establish a budget set aside specifically

for innovation with standards and

manageable risk

2) Develop a standardized business case for

use in sustainability initiatives

3) Create a process for risk related to new

innovation to be shared among OEMs, or

3rd party that would assume the risk

4) Develop an innovation matchmaking

initiative that would connect government

programs and private investment with

innovation and entrepreneurs.

1) Hire like Google (place value on

leadership and “how you think”)

2) Engage media and develop programs to

improve the perception of manufacturing

industry in North America

3) Address concerns of theoretical versus

practical knowledge in new employees

4) Partner with academic institutions in

education and mentoring programs

related to sustainability and innovation.

Hosting annual North American SP Summit on Accelerating Innovation to: understand drivers that generate the need for innovation; understand key barriers preventing creation, adoption and implementation of innovation; identify how to facilitate the implementation of new innovation while providing value in the North American auto supply chain; and, develop actionable recommendations.

Top Ideas – 2013 SP Summit on Accelerating Innovation

SOUTHERN SUPPLY CHAIN

Chair: Patrick Van Ryckeghem, Environment & Sustainability,

GM Spring Hill Manufacturing

Promoting collaboration and sharing of environmental best practices to support the automotive supply chain in the Southeast United States in advancing its environmental sustainability, waste minimization and business development goals. Collaborating with the Tennessee Department of Environment and Conservation (TDEC) Office of Sustainable Practices to construct new networks among automakers, suppliers, recycling partners and regional government representatives to develop new byproduct synergies and alternatives to landfill within the Southeast United States.

Pat Van Ryckeghem, Holley Hanes and John Bradburn, GM with a birdhouse made from scrap Volt battery cover

Jim Laney, DENSO

NORTH AMERICA

SP’s North American initiative is designed to bring together project activities across the US, Mexico and Canada.

Creating the North American platform for OEMs, their suppliers and government representatives to work together to improve environmental performance while increasing value throughout the automotive supply chain.

Benjamin Teitelbaum, CEC; Luis Lara, Ford; Evan Lloyd,

CEC; Delia Rivas, Chrysler; Arnulfo Berlanga, GM

SP Canada Environmental Sustainability Forum

AVA - SP Mexico

ALIANZA VERDE AUTOMOTRIZ (AVA)

• Alianza Verde Automotriz (AVA) is an initiative of the Suppliers Partnership for the Environment (SP).

• AVA provides automakers and their suppliers with the opportunity to address new, innovative and voluntary environmental sustainability projects and activities that will improve environmental performance while providing value throughout the automobile supply chain in Mexico, in collaboration with the Mexican Government.

Alianza Verde Automotriz (AVA) – SP Initiative in Mexico • Energy Efficiency Work Group

Chair: Arnulfo Berlanga, GM Mexico • Waste Management and Resource Creation Work Group

Chair: Delia Rivas, Chrysler Mexico • Water Efficiency Work Group

Chair: Luis Lara, Ford Mexico

AVA Work Group Templates / Best Practices

SP COMMUNICATIONS

SP Communications • Outreach to thousands of OEMs,

suppliers, NGOs, and government representatives through newsletter, website and SP press engagement.

• Showcasing SP and SP members.

SP AWARDS

Recognizing SP member companies for their outstanding achievements in sustainable innovation. In 2013, SP recognized (3) members’ contributions:

• Spirit of Suppliers Partnership Award: John Bradburn,

Manager of Waste Reduction Efforts for General Motors Company, and Chair of SP's Materials Efficiency Work Group

• Demonstrating Environmental Innovation in the Manufacturing Process: International Products Corporation (IPC) for its environmentally friendly P-80® Temporary Rubber Assembly Lubricants

• Creativity in Implementing Sustainable Practices Award: Gage Products Company for its sustainable closed-loop solvent recycling program

For More Information

Steve Hellem, Executive Director

Kellen Mahoney, Program Manager

Suppliers Partnership for the Environment (SP) 1155 15th Street, NW, Suite 500

Washington, DC 20005 Phone: 202-530-0096

Fax: 202-530-0659

info@supplierspartnership.org

www.supplierspartership.org