Why Automotive Suppliers Must Measure Product Carbon Footprints for Source Packages

OEMs are increasingly requesting carbon footprint data in supplier source packages. Suppliers who can’t provide it risk losing contracts and market relevance. But measuring your product’s carbon footprint can also create a competitive edge - helping you optimize operations, reduce costs, and strengthen supplier relationships.

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What is a Product Carbon Footprint?

A product carbon footprint quantifies greenhouse gas (GHG) emissions across a product’s lifecycle - from raw material sourcing and manufacturing to transportation, use, and end-of-life disposal. In automotive supply chains, this includes metals, plastics, composites, electronics, and assembly processes.

Why OEMs Care

• Compliance with ESG and decarbonization targets

• Increased competitiveness in RFQs

• Stronger supplier relationships

Quick fact: Over 60% of Tier 1 suppliers report receiving carbon footprint requests from OEMs.

Step-by-Step Guide for Automotive Suppliers

Step 1: Collect Scope 1 - 3 Data

• Scope 1: Direct emissions from operations

• Scope 2: Emissions from purchased energy

• Scope 3: Upstream/downstream supply chain emissions

  
  

Step 2: Conduct a Lifecycle Assessment (LCA)

• Quantify emissions per part, component, or material

• Use recognized LCA tools tailored for automotive parts

  
  

Step 3: Use Standardized Emission Factors

• Reference databases like Ecoinvent or GaBi for plastics, metals, and composites

• Ensure transparency for OEM evaluation

  
  

Step 4: Document Methodology

• Clearly outline assumptions, system boundaries, and data sources

• Include this in your source package submission

  
  

Step 5: Reduce Emissions Where Possible

• Optimize materials: lower-carbon plastics or recycled metals

• Improve manufacturing efficiency

• Collaborate with upstream suppliers for emissions reporting

Key Takeaways

• Carbon footprint measurement = business opportunity

• Transparent reporting = enhanced supplier competitiveness

• Emission reductions = cost & operational efficiency benefits

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