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Environmental Compliance

Highlights the key regulations the supplier must comply with and requires adequate management system and reporting to be in place. Allows for audits and imposes a duty to cascade to sub-suppliers.

1. Compliance with Environmental Laws: The Supplier shall comply with all applicable European Union environmental laws, regulations, and standards, including but not limited to:

  • Euro 6/VI and Euro 7 Standards setting emission limits for light-duty and heavy-duty vehicles to reduce pollutants such as NOx, CO2, and particulate matter.
  • End-of-Life Vehicles (ELV) Directive (2000/53/EC) aimed at reducing waste arising from end-of-life vehicles and ensure that vehicle components are reused, recycled, or recovered.
  • Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation (EC 1907/2006) governing the use of chemicals in manufacturing processes to protect human health and the environment.
  • Waste Framework Directive (2008/98/EC) establishing measures to protect the environment and human health by preventing or reducing the adverse impacts of waste generation and management.
  • Fluorinated Greenhouse Gases Regulation (EU) No 517/2014 aimed at reducing emissions of fluorinated greenhouse gases used in mobile air-conditioning systems.
  • General Safety Regulation (EU) 2019/2144 mandating advanced safety features in vehicles, such as intelligent speed assistance, lane-keeping systems, and advanced emergency braking
  • Vehicle Type-Approval Framework Regulation (EU) 2018/858 providing a harmonized framework for the approval of motor vehicles and their components, ensuring they meet safety and environmental standards before being placed on the market

2. Environmental Management System: The Supplier shall maintain an environmental management system (EMS) that meets the requirements of ISO 14001 or equivalent. The EMS shall include procedures for identifying, monitoring, and managing environmental risks and impacts associated with the Supplier's operations.

3. Reporting and Documentation: The Supplier shall provide the Buyer with annual reports detailing the Supplier's environmental performance, including data on emissions, waste generation, and resource consumption. The Supplier shall also promptly notify the Buyer of any significant environmental incidents or violations.

4. Continuous Improvement: The Supplier shall implement continuous improvement programs aimed at reducing the environmental impact of its operations. This includes setting and reviewing environmental objectives and targets, and taking corrective actions as necessary.

5. Audits and Inspections: The Buyer reserves the right to conduct audits and inspections of the Supplier's facilities to verify compliance with this clause. The Supplier shall provide reasonable access and cooperate fully with the Buyer's representatives during such audits and inspections.

6. Subcontractors: The Supplier shall ensure that all subcontractors comply with the environmental requirements set forth in this clause. The Supplier shall be responsible for monitoring and enforcing compliance among its subcontractors.

Clause Type Environmental, Governance
Jurisdiction European Union
Industry Automotive
Focus Area Buy-side
Scope both
Contract Type Master Services Agreement (MSA)
Relevant UNSDGs Goal 12: Responsible Consumption and Production
Connecting Clauses Audit and reporting sub-causes are included and these could also be cross-referenced to more details clauses.
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