Boyan Rashev, a highly regarded authority in the field of environmental and resource management in Bulgaria, has played a pivotal role in advancing sustainable practices within the automotive industry. Serving as the managing partner at EY denkstatt, with a focus on ESG, decarbonization, and product sustainability, Rashev has been at the forefront of driving sustainable development in the sector since 2007.
The global automotive industry has led the way in embracing sustainable practices throughout its extensive supply chain, setting a precedent for other industries to emulate. With a complex network of suppliers, manufacturers, and distributors, the industry has shown unwavering commitment to sustainability, extending its influence to even the smallest manufacturers within the chain.
One noteworthy initiative that has gained momentum in the sector is the Science Based Targets Initiative (SBTi), which advocates for climate targets that are based on scientific evidence. This movement has spurred the majority of automotive players to establish ambitious goals aimed at reducing their carbon footprint, exerting a significant impact on the entire supply chain.
In order to be part of the supply chain for automotive powerhouses, smaller manufacturers are required to meet stringent criteria and commitments, which include completing detailed questionnaires and providing evidence of compliance with sustainable practices. The scrutiny is rigorous, with companies being evaluated on various aspects such as company management, labour conditions, and environmental conservation.
Moreover, companies are expected to calculate and anticipate the carbon footprint of their products, with automotive giants prioritising sustainability in their selection of subcontractors. This has presented challenges for smaller manufacturers, who have had to explore innovative methods to diminish their environmental impact and meet the high sustainability standards set by industry leaders.
The pressure to adhere to sustainability requirements does not cease once a contract is secured; companies are also expected to pledge to long-term improvements in their climate impact, adding another layer of responsibility to the equation. To meet these demands, companies often carry out a comprehensive life cycle assessment and formulate ESG strategies and reports in order to outline their sustainable policies, progress, and future objectives.
Although the stringent sustainability requirements may appear excessive, they are vital for risk management, particularly in light of recent global events that have disrupted supply chains and economies. By imposing these standards on their suppliers, automotive giants ensure the resilience and longevity of their operations, fostering a mutually beneficial relationship with their partners.
In summary, the automotive industry’s emphasis on sustainability has paved the way for significant transformations across its supply chain, underscoring the significance of sustainable practices in fostering long-term success and resilience. As smaller manufacturers continue to adapt and innovate to meet these stringent requirements, the industry as a whole continues to make progress towards a more sustainable future.