Paul engages in an enlightening discussion with Arnulfo Salazar, the former corporate sustainability director at AGP Group, a key player in the automotive industry supplying components for electric vehicles. With an impressive customer base including Tesla, Lucid, and Volvo, AGP Group plays a crucial role in the industry's transition toward sustainability. Arnulfo sheds light on the importance of leadership commitment in driving sustainable practices, emphasizing that "you have to have the commitment of all the top management, the CEOs, the investors to push for those type of policies and requirements."Arnulfo begins by outlining AGP Group’s operations, focusing on their manufacturing of skylights, windshields, and side lights for electric vehicles. As the discussion unfolds, Arnulfo explains the urgency behind the transition to renewable energy sources, noting that “the entire supplier base needs also to become neutral” to achieve the automotive industry's goal of carbon neutrality by 2030. He highlights AGP’s success in sourcing green energy, particularly at their Lima, Peru facility, which utilizes a mix of hydro and solar energy, stating, "we partner there with Aneel Peru in order to source entirely our consumption for the plant from green energy."Arnulfo shares the multifaceted role of a corporate sustainability director, which extends beyond environmental issues to encompass social and governance aspects. He reflects on the challenge of aligning a workforce of approximately 4,000 employees worldwide with sustainability goals, affirming that “you have to align the entire workforce. It's not only about one or two people's effort. Everybody needs to be on board.”Resistance to change is a common hurdle in sustainability initiatives. Arnulfo candidly admits, “Resistance is by default. You will always find resistance.” He stresses the importance of building awareness and understanding among employees to foster engagement in sustainability efforts. He also discusses the need for transparency in reporting, sharing his milestone of developing a sustainability report based on the Global Reporting Initiative (GRI) to demonstrate AGP’s commitment to sustainability.The conversation also touches on the complexities of managing sustainability across different regions, with Arnulfo highlighting that “you need to take care not only of a single country’s requirements” but must navigate the unique challenges presented by diverse regulatory environments. He emphasizes prioritization, stating, “you cannot tackle everything at once,” and underscores the necessity of involving specialists to close knowledge gaps within the organization.Furthermore, Arnulfo addresses the social dimension of corporate sustainability, stressing the need for a safe and supportive work environment. He advocates for establishing grievance mechanisms to ensure employees can report misconduct, noting, “it’s very important... to have a transparent and anonymous way to report whatever misconduct you can have in the work environment.”In concluding the episode, Arnulfo reflects on the fundamental role of governance in driving sustainability initiatives, asserting that “the one that is being taken care of the least is governance.” He calls for a collective alignment among top management, CEOs, and investors to establish a clear path towards sustainability, encapsulating the essence of their discussion: “the stair has to be swept top down.”Tune in to discover the critical insights from Arnulfo Salazar that illuminate the path towards corporate sustainability in the automotive industry, highlighting the importance of commitment, collaboration, and accountability in achieving a greener future.