Misalignment in the automotive supply Chain: Sustainability commitments of automotive manufacturing firms and their suppliers

This study investigates whether the net zero pledges and broader sustainability commitments of major firms influence similar commitments among their suppliers. Using a case study of Canada's entire automotive manufacturing sector, we examine original equipment manufacturers and their supply chains to assess the extent of alignment in environmental sustainability practices. Our findings reveal a significant gap between the commitments of large companies and those of their suppliers across multiple dimensions, including net zero targets, environmental, social, and governance integration, and adoption of sustainability reporting frameworks. To evaluate this alignment, we introduce a novel metric—the mirroring impact factor—which quantifies the degree to which supplier practices reflect those of original equipment manufacturers. The consistently low mirroring impact factor scores highlight limited diffusion of sustainability commitments across the supply chain, underscoring the need for more effective mechanisms to drive supplier engagement in decarbonization and broader sustainability efforts.