Automotive giant General Motors announced today that it is asking suppliers in its multi-billion dollar supply chain to sign its new Environmental, Social and Governance Partnership Pledge, with specific commitments on climate, human rights and sustainable procurement.
According to GM, working with suppliers to reduce their greenhouse gas emissions is part of the company’s strategy to reduce its own carbon footprint, and its all-electric vision, including the company’s plans to achieve carbon neutrality by 2040, and its aspiration to eliminate tailpipe emissions from new light-duty vehicles by 2035. GM has also highlighted equity considerations in the automotive industry’s shift toward an all-electric future, pledging last year that the company will prioritize equitable climate action as it pursues its vision of a zero-emissions future.
Jeff Morrison, GM Vice President of Global Purchasing and Supply Chain, said:
“There are economic and social imperatives in lowering emissions and addressing climate change while cultivating a just transition. As we accelerate toward our vision of an all-electric future, our commitment to bringing everybody along includes our global suppliers whose collaboration is critical to promoting a sustainable, safe and better world.”
The new ESG pledge asks suppliers to commit to achieve carbon neutrality for their Scope 1 and 2 emissions, with target dates based on their respective industries, and to reach specific scores by 2025 for sustainability management systems covering issues such as employee health and safety, social dialogue, diversity and non-discrimination, child and forced labor, corruption and anticompetitive practices based on a scoring system by sustainability ratings provider EcoVadis. The pledge also asks suppliers to reach a minimum EcoVadis score by 2025 for sustainable procurement, covering the ESG practices of their own suppliers.
GM stated that suppliers representing over half of the company’s $76 billion direct material annual purchase value have already signed on to the pledge.
Pierre-Francois Thaler, Co-CEO of EcoVadis, said:
“GM’s ESG Supplier Pledge is a best practice example of how to work with suppliers and turn their ‘Everybody In’ vision into action. These specific and actionable targets are exactly the kind of engagement needed to accelerate their value chain towards positive impact, and to make business a force for creating a more sustainable world.”