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Overview of Voluntary Environmental Programs in Mexico September 7th, 2011 Commission for Environmental Cooperation (CEC) Sponsored Workshop Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain

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Overview of Voluntary Environmental Programs in Mexico

September 7th, 2011

Commission for Environmental Cooperation (CEC) Sponsored Workshop Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain

PROFEPA, and the National Audit Program were born in 1992

Guadalajara

G U A D A L A J A R A

Valuable

Stream

Raw Materials Intermediary

Products Finished Products

Intermediary Commerce Consumer

Importers/Exporters of packaging and products

Wastes Collecting and

Storage Separation Valorization

Landfills

Value Chain, Sustainable Production & Consumption

All streams generate wastes. Objective: From cradle to reencarnation

International Organizations

Executive Government

Congress Communication

Media

Universities NGO’s Certification

Organizations

Maximize efficient use of materails

Minimize Wastes

Minimize Environmental

Impact (Life Cycle Approach)

Main characteristics

– Voluntary

– It doesn’t re-invent the purchase process. Adds value to the one is already in place.

– Strenghts value chain

– Fosters Benchmark

– Classify our suppliers:

• Occasional

• Qualified

• Prefered

• Strategic

2002, A project about suppliers management was born

Suppliers, Commercial Partners

Quality, Price, Deliver time, Service & Environment!

III I

II IV

Suppliers

Ris

k fo

r B

usi

nes

s

Risk for the Environment

W O R K

W I T H

S U P P L I E R S

W O R K

W I T H

S U P P L I E R S

CEC’s Green Supply Chains

Focused on Sme’s (the smallest participant had 7 workers)

Looking for profitable Pollution

Prevention opportunities

Environmental Performance Evolution Environmental Performance

Time

Indicators

Legislation Mínimal

Environmental Management System (EMS) implementation

EMS implemented

Environmental Legislation

+ Good Practices

(manufacturing & operation)

EMS

Environmental Excellence

EMS Mature / Evolved

CERTIFIABLE e g- ISO 14001

NON-CERTIFIABLE

ESAP (GEMI)

EVOLVED RESPONSIBLE CARE

PERFORMANCE QUALITATIVE (CRITERIA/ISSUES)

e. g. SD PLANNER

QUANTITATIVE ISO 14031 ISO 14063

LIFE CYCLE/ DECLARATIONS

ISO 14020’s ISO 14040’s

ISO 14062 ISO 14064

REPORT e. g. GRI

DJSI

Inactive

Reactive

Responsible

Proactive

P E R F O R M A N C E

MANUFACTURING COMMERCE/ CONSUMPTION

SUPPLIERS

ECONOMIC SOCIAL ENV.

SUBPROCURADURÍA DE AUDITORÍA AMBIENTAL

SUBPROCURADURÍA DE AUDITORÍA AMBIENTAL

PROFEPA’s policy through

voluntary mechanisms

To improve environmental

performance in economic sectors

to go beyond compliance.

OBJECTIVE

National Audit Program Environmental Leadership for Competitiveness Program

VOLUNTARY MECHANISMS MENU

•Large and medium sized

companies

•High environmental

impacts

•Manufacturing

•Heavy industry

•Value chains

•SMEs

•Manufacturing

•Heavy industry

•Some services

Certification Recognition

Environmental Excellence Award

• Certificate

• Seal use

• 2 years in force

• Tax incentives

• Performance indicators

• Benchmark

• Learning by doing

• Free

• No binding commitments

• Official recognition

Excelencia Ambiental

Certification Recognition

VOLUNTARY MECHANISMS MENU

This program has 12 Automotive industries related to vehicle manufacturing that includes:

Ford

General Motors

Nissan

VW

Honda

Chrysler

National Environment Audit Program

National Environment Audit Program

Savings of 6 million m3 of water

This represents enough water to sustain

an average of 7,000 families during one year.

Savings of 860 million kWh of energy.

This is enough electricity to sustain 300,000 homes for one year

Accumulated numbers of the National Environment Audit

Program

More than 1,500 industries have

participated in this program, including 38

automotive facilities with their supply

chain

ENVIRONMENTAL LEADERSHIP FOR COMPETITIVENESS

Environmental Leadership for Competitiveness Program (PLAC)

NUMBERS OF AUTOMOTIVE INDUSTRY WITH PLAC

ENVIRONMENTAL LEADERSHIP FOR COMPETITIVENESS

Savings of 73,000 m3 of water

That represents enough water to sustain

an average 148 families during one year.

Savings of 9.7 million kWh of energy.

This is enough electricity to sustain 3,500 homes for one year

ENVIRONMENTAL LEADERSHIP FOR COMPETITIVENESS

NUMBERS OF AUTOMOTIVE INDUSTRY WITH PLAC

Reducing emissions by 8,800 ton CO2 per year.

This represents the emissions released from 1,700 compact cars.

The participating companies saved 3.3 million dollars

CONTACT US

Tel. (55) 5449-63-45

email

[email protected]

Webpage http://www.profepa.gob.mx

Clean Industry and Environmental Leadership

for Competitiveness programs at Ford in México

Sept 2011

• Ford Manufacturing facilities located in Hermosillo, Cuautitlán and Chihuahua joined the Voluntary Clean Industry Process since 1997 with PROFEPA Agency. • Since then, all Ford facilities have been evaluated (surveillance or certification) on a regular basis including current 2011 year. • Clean Industry process has permitted Ford to evaluate and confirm their own environmental compliance assurance process and also to identify improvement opportunities to favorably impact their current environmental metrics. • Because of the evident benefits, Ford plan is to continue participating in Clean Industry process with PROFEPA.

CLEAN INDUSTRY PROGRAM AND FORD IN MEXICO

ENVIRONMENTAL LEADERSHIP FOR COMPETITIVENES

FORD IN MEXICO HIGHLIGHTS Ford Hermosillo and local suppliers (Apr 2011): - Identified potential savings: $900,587.00 USD / year. - Number of individual projects: 17 - Water savings: 60.5 M3 / year - Energy savings: 5,182,901.00 kWh/ year - Fuels savings: 33.81 m3/year. - Reduction in air emissions: 3,446.00 tons of CO2/year - Waste reduction: 686 ton/year - Participants: 17 companies and 32 people trained.

Ford Chihuahua and local suppliers (Dec 2010): - Identified potential savings: $ 783,575.00 USD / year - Number of projects: 19 - Water savings: 32,416 m3/year - Energy savings: 6,260,373 kWh / year - Fuels savings: 0.49 m3 /year - Reduction in air emissions: 4,761 tons CO2 /year - Waste reduction: 103 ton/year - Participants; 15 companies and 15 people trained

Ford Cuautitlán: - Because of evident environmental and economic benefits, Cuautitlán plant is planned to join initiative late Nov 2011 and, for 2012, all plants to internally will apply for similar program.