SP Auto salvages EU operations through CBAM compliance 

Realising the urgency of CBAM compliance

SP Auto, a trusted name in fastener manufacturing since 1962, has built a legacy of excellence in exports. Over the decades, the company has expanded its reach globally, with a prominent presence in the European market. However, this legacy was tested when a key German importer requested a Carbon Border Adjustment Mechanism (CBAM) report, a regulation SP Auto had not encountered before. Unfamiliar with the complexities of the EU CBAM, the company faced a risk of trade disruption that could severely impact its EU export business. With no prior exposure to CBAM regulations, SP Auto felt an urgent need to address compliance, risking potential trade disruption and jeopardising their established EU export operations.

As a legacy company, SP Auto had long embraced evolution to stay competitive. However, CBAM posed a unique challenge—demanding a shift not just in strategy but in operational processes to meet sustainability compliance for the first time. This marked a pivotal moment in SP Auto’s journey, pushing the company to innovate and align its operations with emerging global sustainability standards.

Taking the first step to set up the infrastructure

SP Auto initially struggled with manual data collection, which was cumbersome due to poor workflow collaboration and a painstaking process. However, they recognised the urgency of aligning with the requirements of EU CBAM to safeguard their decades-old export business. The first step was to integrate TSC NetZero into their operations, enabling them to map, report, and manage their emissions seamlessly.

By implementing TSC NetZero’s CBAM for exporter tool, SP Auto established a digital workflow automation capable of tracking emissions across its operations and supply chain. This infrastructure not only ensured compliance with CBAM regulations but also positioned SP Auto as a forward-thinking trade partner to make better supplier decisions based on emissions to reduce the carbon taxes paid in the value chain.

Ensuring trade continuation and expansion

With the foundation of compliance firmly in place with TSC NetZero, SP Auto set its sights on leveraging CBAM adherence as a growth enabler in the European market. For decades, their exports relied on established relationships, but meeting CBAM regulations made them preferable, among existing and potential EU trade partners, over other suppliers exporting to the EU. The company not only retained its valued German importers but also became an attractive partner for businesses across the EU. The compliance effort for CBAM opened doors to new markets where sustainability regulations are becoming increasingly stringent.

Workforce upskilling and education in sustainability management 

Sustainability management has recently become a key component of business operations. While organizations recognize its importance, many lack the knowledge and skilled workforce required to execute it effectively. For Buhin, upskilling its workforce in sustainability management was crucial—not only to meet CBAM compliance requirements but also to align with the company’s long-term sustainability goals and remain competitive in a rapidly evolving market.

The Sustainability Cloud’s TSC NetZero played a pivotal role in this transformation by providing comprehensive training to Buhin’s team. The training sessions covered the core implications of CBAM on their operations, emphasizing how non-compliance could lead to significant trade barriers and affect market access. This holistic approach empowered Buhin’s workforce to take ownership of sustainability initiatives, driving meaningful progress toward the company’s environmental and operational objectives.

Journey beyond compliance

Equipped with real-time emissions data and actionable insights, SP Auto positioned itself as a proactive, environmentally responsible exporter. Beyond compliance, their ability to optimize emissions throughout the operations minimised carbon taxes across the value chain, allowing them to maintain competitive pricing in the market while meeting sustainability expectations. Through TSC NetZero, SP Auto transitioned from navigating a complex compliance regulation to leveraging it as an opportunity to gain a competitive edge.

A well-equipped and skilled workforce

The automation of the CBAM reporting was just the first step. The real challenge was in equipping SP Auto’s workforce with the knowledge and skills to navigate CBAM and evolving climate regulations effectively. Familiarising employees with the intricacies of TSC NetZero and ensuring they could leverage the software’s full potential required focused training.

Through comprehensive upskilling initiatives and hands-on workshops, SP Auto’s team not only mastered the use of the platform but also gained a solid understanding of CBAM and broader climate compliance frameworks making SP Auto future-proof, ensuring they remain agile and prepared to adapt to any climate-related regulations in the years ahead.