At Standard Motor Products, we demonstrate the importance of corporate sustainability through commitments to our company, our employees, our customers, business partners, and the communities in which we operate. Collectively, these commitments are vital our success. Our Corporate Sustainability Report shares some of the specific ways we pursue environmental and socially responsible business and corporate governance practices.
Ten of our facilities hold ISO 14001:2015 environmental certifications.
As a leading automotive parts manufacturer and distributor, we recognize that we have an important role to play towards promoting a greener car parc. The ISO 14001:2015 Environmental certification that our facilities maintain, provides an important framework for establishing an effective environmental management system that helps us to achieve our environmental objectives.
We are proud to report that we have reduced our total Scope 1 and Scope 2 GHG emissions intensity by 30% compared to our 2019 baseline year.
We are doing our part to proactively tackle climate change by addressing our own carbon footprint. Our goals are ambitious — by 2030 reduce our total Scope 1 and Scope 2 GHG emissions by 25% (compared to our 2019 baseline year), 67% reduction by 2040, and it’s our intention to achieve net-zero total Scope 1 and Scope 2 GHG Emissions by 2050.
We’ve introduced ESG software to accurately capture our Scope 1 and Scope 2 GHG emissions, and have developed a roadmap to achieve our GHG emissions reduction goals. We completed facility upgrades and continue to implement initiatives designed to reduce our carbon footprint at our most energy intensive facilities. Additionally, 38% of our sales fleet vehicles has transitioned to hybrid electric to improve fuel economy, lower fuel costs and reduce emissions – our goal is 100% by 2024.
The primary metrics that we use to measure our environmental impact include our consumption of electricity, our generation of waste and the percentage of waste recycled, our management of water, and our Scope 1 and Scope 2 greenhouse gas emissions. The following tables describe our performance across these metrics for the periods presented.
We believe remanufacturing as a form of sustainable manufacturing promotes many economic, environmental and product benefits.
Our extensive Remanufacturing Program diverts certain types of used automotive parts from traditional waste streams, reprocessing and returning them to same-as-new condition and performance. We remanufacture key categories such as air conditioning compressors and diesel injectors, resulting in the production of like-new premium remanufactured parts through processes that save energy and reduce waste.
Serving professional technicians, many of our parts extend the vehicle’s service life by replacing critical components that have failed over time.
In our core automotive aftermarket business, we supply premium automotive parts used in the maintenance, service and repair of vehicles. Many of our parts extend the service life of vehicles by replacing critical components that have failed over time. These parts are necessary for vehicles to operate safely and efficiently, as designed.
Our Temperature Control segment is poised to benefit from systems being developed to manage electric vehicle batteries, while the Vehicle Control segment offers more than 165 powertrain-neutral product categories.
In 2023, we reorganized our business into three operating segments – Vehicle Control, Temperature Control, and Engineered Solutions. This new segmentation provides greater clarity into how we are positioned to deliver the automotive technologies of today and tomorrow, by offering solutions for advanced internal combustion engines (ICE), hybrid electric, electric and powertrain-neutral vehicle applications.
We’ve always capitalized on opportunities to develop and supply quality automotive parts for systems designed to increase powertrain efficiency, improve fuel economy and reduce harmful vehicle emissions.
As we look to the future and the evolution of automotive technologies, we see our role as a solutions provider, developing and bringing to market premium products for the next generation of vehicles. Fundamentally this is no different from the role we have played historically in our 100-plus years of business.
We believe that part of corporate responsibility means giving back to the people and communities that have made our success possible.
We understand that our most important asset is our workforce, which provides enormous value through the diversity of its skills, experiences, and perspectives. To foster an inclusive, safe, supportive environment, we emphasize the well-being of our employees by investing in their training, benefits, health and safety. We prioritize diversity, equity, inclusion and belonging, to create the type of work environment where everyone feels welcome.
These investments help ensure we attract and retain individuals of diverse backgrounds, and have proved effective through high employee satisfaction and low employee turnover. Through our SMP Cares® initiative, we give back to the communities in which we operate through volunteerism, community efforts and philanthropy.
Consistent with SMP’s values, our Board of Directors oversees an enterprise-wide approach to risk management while promoting SMP’s long-term strategic objectives and enhancing shareholder value.
The Board is responsible for approving mergers and acquisitions, reviews all stakeholder ESG-related communications, and oversees senior leadership on ESG strategies, initiatives, policies and practices. Our four standing committees provide oversight in areas that include accounting, security and risk management; and health, safety and human capital management. The Strategic Planning Committee oversees SMP’s long-term strategic direction as it relates to growth initiatives and emerging trends, such as the transition to electric and hybrid vehicles.
We believe we have the necessary board and executive oversight, and governance policies to effectively support our sustainability programs and to reach our environmental goals. Accordingly, the Board intends to approve the Company’s climate transition strategy, which is currently in development by management, to help us achieve net-zero Scope 1 & 2 GHG Emissions by 2050.
Our team at SMP is committed to taking an active role in global environmental sustainability, to help protect the environment for both people and planet, and perhaps more importantly, our future generations. As a team, we are encouraged in our sustainability journey, because together we can achieve much more than any one of us can accomplish individually.