Suppliers, from an emissions perspective, play a role in our 000 future. We want to challenge and set bold goals and we want to set aggressive timelines, but we also want to support suppliers on the journey, and we offer education and tools to help them.Īs for what drove it, it goes back to our “000 vision,” with zero crashes, zero emissions, and zero congestion future vision for GM. A key element I am going to share over and over is the relationships we have with suppliers and how we want to support suppliers. We were having great discussions late last year over what this should look like. I am proud to say that during those discussions the pledge was enhanced, improved, and refined, through those discussions with suppliers. We started talking about a pledge and started talking internally about it. I have a supplier sub-consignment group I meet with every two weeks, and we have great conversations around sustainability. Logistics Management (LM): How long had this ESG pledge initiative been planned or in the works? What drove it?įred Gersdorff: This really got going late in the third quarter and into the fourth quarter of last year. LM Group News Editor Jeff Berman spoke with Fred Gersdorff, GM's Senior Manager of Socially Responsible and Sustainable Supply Chains, about the pledge and what it means going forward. GM further announced in June 2021 that it would prioritize equitable climate action to help ensure its all-electric future is inclusive for its current and future workforce, customers and communities that may be disproportionately impacted by climate change.” GM also announced the acceleration of its renewable energy goal to 2025 in the U.S. The company is working toward a transition to 100% zero tailpipe emissions for new light-duty vehicles by 2035. “In early 2021, GM set targets to become carbon neutral in its global products and operations by 2040. “Working with suppliers to reduce their greenhouse gas emissions is part of GM’s strategy to reduce its own overall carbon footprint and accelerate toward an all-electric future,” GM officials said. And it said the company will also provide support as it identifies opportunities for significant reductions in greenhouse gas emissions and energy use, provide educational webinars and resources, and develop tools to help remove barriers in the transition to renewable energy. What’s more, GM said that its supplier pledge expands on GM’s goal to bring “Everybody In” for the all-electric future with a commitment to establishing a collaborative supply chain that endeavors to minimize environmental impact and enhance long-term sustainability. by 2025, achieving a minimum score of 50 in the EcoVadis Sustainable Procurement pillar, which covers how GM's suppliers understand and govern the social and environmental practices of their own suppliers and use their purchasing influence to advance sustainability (EcoVadis is a third-party assessor that evaluates how well a company integrates the principles of sustainability and corporate social responsibility into their business and management system)Īt the time of the release of this pledge, GM said that of its roughly $76 billion direct material annual purchase value in 2021, GM suppliers representing more than 53% of that figure have already signed the pledge.by 2025, achieving a minimum score of 50 in the EcoVadis Labor & Human Rights and Ethics pillars, which demonstrates a mature sustainability management system that covers employee health and safety, social dialogue, diversity/nondiscrimination, child and forced labor, and avoids corruption and anticompetitive practices and.These are 2025 or earlier for Professional Services, 2035 or earlier for Manufacturing and 2038 or earlier for Raw Materials and Logistics achieving carbon neutrality for their Scope 1 and Scope 2 emissions by dates based on their respective industry.GM said that suppliers that sign the pledge commit to various efforts, including: Late last month, Detroit-based General Motors (GM) heralded a new Environmental, Social and Governance (ESG) pledge, inviting its global suppliers to join the company in a “commitment to carbon neutrality, the development of social responsibility programs, and implementation of sustainable procurement practice in their supply chain operations.”
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