Schaeffler is a global automotive and industrial supplier with operations in Southeast Michigan, where it works across the region’s manufacturing and supplier network. As sustainability, decarbonization and supply chain resilience become central to how products are designed and sourced, the region’s role in shaping next-generation manufacturing continues to evolve.

SBN Detroit interviewed Courtney Quenneville, who oversees supplier sustainability, to discuss the realities of sustainable sourcing, what decarbonizing a supply chain looks like in practice, and how suppliers in Southeast Michigan can remain competitive amid changing expectations.

Q: Southeast Michigan is historically known for automotive manufacturing. As supply chains evolve, what role do you see this region playing in the next generation of sustainable manufacturing and sourcing?

A: Southeast Michigan has always been the heart of auto manufacturing, and I see this as a benefit to how we shape the future of sustainable supply chains.

Our regional engineering expertise gives us the ability to embed sustainability standards into the earliest phases of design and production. We’re also fortunate to have many local organizations working to raise awareness and build connections across supplier tiers. This mix of awareness and collaboration is what creates the ripple effect that will carry sustainable manufacturing and sourcing into the next generation.

Q: What does “decarbonizing a supply chain” actually look like in practice? Where does it begin and what makes it difficult to scale responsibly?

A: Decarbonizing a supply chain is being intentional about reduction measures throughout every step, from raw materials being used all the way to delivery methods. It begins with transparency – understanding total emissions across the supply chain and then working directly with suppliers to find practical ways to reduce scope 3 emissions, especially purchased goods and services.

The challenge is that not every supplier is at the same point in their sustainability journey; some are already investing in renewable energy or using greener materials, while others are just starting to measure their footprint.

It’s important to understand where each supplier partner is at and help them take the next step. Scaling responsibly isn’t about expecting immediate results but building progress together.

Q: What are the toughest sustainability challenges suppliers in this region are currently facing?

A: Right now, suppliers in this region are facing a lot of uncertainty — tariffs, supply chain shortages, and constant pricing pressures. It’s no surprise that many suppliers feel stuck in crisis or response mode, which makes it harder to focus on long‑term sustainability.

At the same time, these challenges highlight why resilience and sustainability go hand in hand. By working closely with suppliers and helping them take practical steps forward, we can show that sustainability isn’t another burden — it’s part of how they stay competitive through all of this change!

Q: As more companies move toward science-based targets and emissions reductions, how will this shift affect procurement practices and supplier relationships?

A: Just as Schaeffler has done, more companies will commit to science‑based targets, and sustainability will naturally become part of how they source. Procurement will no longer be just about cost and quality. Suppliers will need to be transparent about their emissions in the sourcing process as well as share future reduction levers. This visibility is crucial if we expect to continue reducing impact across the supply chain.

The real shift is in relationships. Customers and suppliers will need to work together more than ever to accomplish shared sustainability goals. Once suppliers see how their sustainability efforts open opportunities, they’ll lean in further. Aligning with our suppliers on these initiatives will help determine the strength and future of our partnerships.

Q: You’ve helped exceed renewable energy targets in the Americas. What insights have those efforts revealed about what’s working and what’s not?

A: It has been encouraging to see the number of suppliers in the region that already have renewable energy plans in place — some are operating at 100% renewable, while others have clear roadmaps to get there.

And importantly, they see that we are not the only customer requesting this information, which reinforces for suppliers that renewable energy is now a business expectation, not a side initiative.

At the same time, we are learning that cost concerns can slow renewable energy adoption. Some suppliers are weighing the financial impact of renewable energy, which means timelines vary. That’s why our approach is to understand and help suppliers move forward from their current stage. We want progress that is collaborative and realistic.

Q: In terms of equity and inclusivity in sourcing, how do supplier diversity and sustainability intersect and why does that matter for economic resilience in Michigan?

A: In recent years, more automotive companies have aligned supplier diversity with their Environmental, Social, and Governance (ESG) initiatives — and in my view, it’s the perfect fit. The ‘social’ pillar is about community development and corporate impact, and nothing strengthens communities more than fueling the local economy.

Here in Michigan, we’re fortunate to have thousands of small businesses that are ready to bring innovation and resilience to our supply chains, and investing in these businesses helps build more sustainable communities.

With growing pressures to localize production, this is the right moment for Michigan businesses to demonstrate their value. Looking forward, keeping a strong network of local suppliers will be critical, not only for resilience and competitiveness, but also for advancing sustainability across our supply chains and communities.

Q: What does it take to ensure traceability and accountability across complex, multi-tier supply chains?

A: Traceability is about visibility and accountability is about relationships – and transparency is key for both. It means having the knowledge of your direct suppliers and where materials come from upstream, backed by strong internal tracking and a sustainability team working towards a shared goal.

Also, because of the complexity of the multi-tier supply chains, accountability must be handled through collaboration with suppliers – things like industry standards, shared audits, and supplier engagement.

Q: Looking ahead five years — what shifts do you expect to see in sustainability requirements and expectations for suppliers and how can Southeast Michigan suppliers position themselves to stay competitive?

A: In the next five years, I expect sustainability to become an even higher priority topic, and most importantly, further embedded in the sourcing process. Expectations through the supply chain will continue to rise, and suppliers will need to demonstrate continuous progress to stay competitive.

Beyond that, there will be growing pressure to shorten supply chains and localize production, with customers looking for partners who are both cost‑competitive and committed to utilizing green energy.

No matter where you are in your sustainability journey, the best step is to engage with local organizations to build knowledge and awareness — especially here in the heart of automotive, where this topic is very relevant.

And when meeting with customers, I would suggest asking about their sustainability goals, finding ways to align. That alignment, paired with continuous learning, is what will keep Southeast Michigan suppliers competitive and resilient.

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