The U.S.-based Suppliers Partnership for the Environment, a coalition of global automakers and suppliers, on Thursday unveiled a guidance document aimed at standardizing how the automotive industry tracks and discloses water use as pressure grows on companies to strengthen environmental reporting.

The new framework, titled “Core Water Metrics for Automotive Operations,” sets out a voluntary suite of metrics covering water use, risk assessments, policies and targets and supply chain engagement.

The goal is to create consistency across an industry that has long grappled with overlapping requirements from regulators, investors and customers.

In the automotive sector, water is vital for cooling, painting, surface treatment, cleaning and component manufacturing. Manufacturers use as much as 39,000 gallons per car, including processes like metal finishing and paint application.

“This new guidance reflects our members’ shared commitment to responsible water use,” said SP Executive Director Kellen Mahoney, in a statement. “By identifying a core set of voluntary metrics, we hope to support companies in responding more efficiently to disclosure expectations and advancing their own water stewardship efforts.”

The metrics align with widely used reporting frameworks, including the CDP, the Global Reporting Initiative, and the Science-Based Targets Network. They include annual reporting of total water withdrawn, discharged and consumed, water intensity per unit of production, and pollutant tracking

Rising Scrutiny on Water Risks

Water management is emerging as a top sustainability concern for manufacturers operating in water-stressed regions.

A 2024 analysis by The Water Council, commissioned by SP, mapped key water indicators across 15 frameworks and informed the new guidance.

The document stresses the need for site-level risk assessments using tools such as the World Resources Institute’s Aqueduct and the WWF Water Risk Filter, and for companies to set measurable targets in areas facing high water stress.

“Water stewardship is a growing priority across the industry, and it’s important that we speak a common language when sharing data,” said Timothy Buisch, global water lead at Ford Motor Co. “This guidance can help reduce reporting confusion and provide a clearer picture of how we’re managing water risks across the supply chain.”

Supply Chain Engagement

The guidance also encourages automakers to engage suppliers on water risks, recommending that companies prioritize high-impact or high-risk suppliers rather than seeking universal reporting. An appendix provides a matrix for identifying which suppliers warrant deeper engagement.

SP said the metrics build on its earlier Water Stewardship Strategy Framework and Action Matrix, and complement its Automotive Climate Action Questionnaire, already used by several industry leaders.

While the metrics are not mandatory, SP said they are designed to strengthen transparency and credibility in voluntary reporting, potentially easing the burden on companies navigating multiple disclosure demands.

“Data monitoring, risk assessments, policies and supplier engagement form the pillars of a sound stewardship program,” the guidance states. “Increasing consistency within the automotive value chain is expected to boost awareness of water impacts and support more credible reporting.”