“We have seen the strong increase in CBAM requests from our customers and their need to have accurate information provided in a timely manner. Our commitment to our customers and meeting their expectations led Semblex to partner with Carbonhound. With Carbonhound’s help we are now able to respond to these requests efficiently and accurately without needing to add resources”
Semblex Corporation is a fastener manufacturer based in Elmhurst, Illinois specializing in innovative fastening technologies and cold formed solutions. They supply components to companies in the automotive, consumer electronics, farm equipment, heavy truck, lawn & garden, and motorcycle & power sports industries. As a Tier 1 supplier to major manufacturers around the globe, Semblex has been receiving requests from their largest customers who are impacted by the European Union’s Carbon Border Adjustment Mechanism (CBAM).
Customer Highlights
- Semblex captures their greenhouse gas emissions data and leverages the data they collect and quantify to support their CBAM template submissions.
- Semblex is actively engaging with their own suppliers to also upgrade their data quality ahead of 2026 when the transition period officially ends.
Why are North American companies impacted by CBAM?
The Carbon Border Adjustment Mechanism is a regulation from the EU that aims to place a fair price on carbon for all goods entering the EU, regardless of where they were manufactured. The CBAM is aimed at companies importing carbon-intensive goods (including iron & steel and aluminium) worth over €150 into the EU. These importers are required to engage with their suppliers to report on the embedded carbon emissions of these products, regardless of where the suppliers are located. Failure to provide accurate first-hand data from their suppliers, leads to significant fines for these importers.
Learn more about the Carbon Border Adjustment Mechanism here.
How Semblex works with Carbonhound to meet customer requests with integrity
As requests from major customers for CBAM, CDP, and M2030 supplier questionnaires started coming through and without an in-house climate expertise, Semblex looked for an external solution to meet these requests. Following a referral from a trusted peer in their industry, Semblex started working with Carbonhound to fully automate their climate reporting. Through complete data automation, Semblex is able to track their GHG emissions with integrity, while reducing the burden on their HR and Compliance teams to satisfy customer requests and secure major accounts.
Equipped with their Scope 1, 2, & 3 emissions and access to climate experts at Carbonhound, Semblex has submitted the CBAM Communication Template for Installations and other climate requests to all customers asking as they come in.
Maintaining strong customer relationships through climate reporting
Part of completing the CBAM Communication Template for Installations requires engaging with one’s own suppliers to improve the data quality around purchased precursors that contribute or impact the CBAM goods category. Semblex has been working with their own suppliers for the past few months to collect this critical data that impacts the quality of the data that they share with their customers.
The Carbon Border Adjustment Mechanism is a unique regulation because the data requirements are placed on the manufacturers, but the financial penalties are placed on the importers. Because of this, responding to CBAM requests with integrity is a requirement to maintain customer relationships and remain a preferred vendor.
Semblex recognizes the risk of not responding to these requests with integrity and ensures strong relationships with their customers by being prepared for any request that comes their way.
