The team behind the first-ever Canadian Automotive Sustainability Summit, a gathering held June 2024, dedicated to spreading awareness about sustainable efforts in the auto care industry. This landmark event was hosted by Solera and Simplicity Car Care.
SUSTAINABILITY IS IN STYLE!
DETAILS ON THE INDUSTRY’S LATEST TREND
Story by Allison Rogers
Environmental sustainability and the collision repair industry’s own role in curbing carbon emissions is a topic that has rapidly climbed to the forefront of many industry conversations. In the last year, the Canadian industry has taken several steps to bring the conversation into the spotlight, including the first-ever Canadian Automotive Sustainability Summit, hosted by Solera and Simplicity Car Care this past June.
WHAT IS A SUSTAINABLE CLAIM?
The question of sustainability, as it relates to collision claims, interrogates what methods are being used to restore the car to pre-accident condition, and how environmentally sustainable those actions are.
In summary, sustainable estimatics measure the amount of carbon that is produced in a collision claim, explained Bill Brower, senior vice president of global industry relations and North American claims.
“When you think about collision claims, the question of sustainability is: how is this car being repaired? At Solera, we have been researching sustainability and working in this space for about three and a half years to create sustainable estimatics,” said Brower. “In summary, sustainable estimatics measures the amount of carbon that’s generated in a collision repair. Sustainable estimatics provide guidance on how to lower emissions.”
When asked why a collision centre would be interested in pursuing sustainable claims, Brower said Solera’s advice for more sustainable practices—which includes strategies like using green recycled parts wherever possible, and repair over replace—can enable lower cycle times, length of rental and keep technicians happy.
“Plus consumers, in most cases, prefer to go for the eco-friendly collision repair,” he added. Collision repair facilities should be focused on emissions in three categories, advised Brower. First is scope one, direct emissions; then scope two, indirect electricity emissions and scope three, external and indirect emissions.
“Scope one is the carbon you produce in your own bodyshop, the emissions that you control. Scope two carbon emissions arise from the energy used in your shop. Your shop may be powered by a local electric company; that could be run by solar power, hydroelectric, et cetera.” According to Simplicity Car Care’s data, scope one emissions account for between 10 percent and 15 percent of a collision repairer’s emissions. Meanwhile, scope two relates to about 15 percent to 20 percent of the average repairer’s output.
“Scope three is the most difficult to track,” added Brower. “This would be the carbon created in the creation of parts that you, the collision centre, ultimately use in your repair. So, it’s all of the carbon emissions created in that process, from the gathering of raw materials to developing the part and shipping the part.”
IS IT PRACTICAL OR PROFITABLE?
According to Alyssa Marchese, ESG manager for Simplicity Car Care, the financial benefits of sustainability can be tangible and compelling.
Simplicity Car Care’s data collection program has revealed that tracking utility usage, waste management, and operational inefficiencies can pinpoint areas where energy is being wasted, resulting in a significant reduction in both costs and emissions. “For instance, our analysis has shown that embedding a ‘repairover- replace’ strategy can reduce electricity consumption by 7.8 percent,” wrote Marchese in a recent column for Collision Repair magazine.
“This is achieved through technological optimization, but more importantly by changing the way we approach repairs and customer service. When combined with behavioural changes—such as turning off compressors or heating systems when not in use—these savings can reach up to 20.6 percent.
“By simply managing energy consumption more effectively, collision repair centres can cut costs without investing in new technologies or equipment. The goal is to create a culture of awareness where every employee understands their role in managing utility resources and reducing waste,” continued Marchese.
“Simple changes in behaviour and processes can reduce energy costs by over 20 percent, offering the same financial boost as a five percent increase in sales for many collision repair centres, and without the need for significant capital investments in new equipment.”
FOCUS ON THE FUTURE
During Simplicity Car Care and Solera’s Automotive Sustainability Summit, keynote speaker Helle Bank Jorgensen, founder, CEO and environmental social governance (ESG) specialist for Competent Boards stressed that we must focus on the future.
“I want you to skate to where the puck is going to be,” said Jorgensen, using Wayne Gretzky’s famous line. “We can’t say, ‘Let’s wait until we have the regulation,’ or ‘let’s wait until we see the effects of climate change.’ Because it will be too late.” She added that her top three pieces of advice for businesses keen to pursue sustainable efforts are, first, to “get started”; second, to collaborate and third, to take a look at your data points to deliver a path that gets your business where you want to be.
“You need to get started,” she said. “It would be a stupid thing to just ‘wait and see,’ because this is really happening.” Jorgensen also emphasized that “for too long, different departments have been working in silos.”
“We need to engage. We need to stop thinking silos—no one is speaking to each other. We as leaders need to step up. The sooner we do it, frankly, the more fun we are going to have.” Ultimately, the first step is to “buckle up” for waves of change, concluded Jorgensen, adding that the current shift is not unlike the introduction of seatbelt laws in the 1970s. “Think of how many lives were saved with that proactive action. We can do the same, here and now.”
