GM is driving toward an all-electric future with a vision of everybody in. This vision extends beyond GM and includes our suppliers. We know that only with our suppliers’ commitment will we achieve our vision of zero crashes, zero emissions and zero congestion.
We take pride in knowing that many of our suppliers are dedicated to protecting our planet and fostering healthy work environments. In recognition of this commitment, in 2021, we began inviting Tier I suppliers to sign General Motors’ Environmental, Social and Governance (ESG) Partnership Pledge. Our ESG Partnership Pledge embraces sustainability in a holistic manner, focusing on commitments related to environmental, social and governance topics. Suppliers pledging to improvements in these three pillars helps us all accomplish our shared goals of reducing economy-wide carbon emissions and serving our communities.
We ask suppliers to provide near-term results by obtaining a minimum score of 50 in the EcoVadis Human Rights, Ethics and Sustainable Procurement Pillars.
For the environmental pillar, we ask suppliers to commit to carbon neutrality for their Scope 1 and Scope 2 emissions relevant to products or services a supplier provides to GM. The timeline for a supplier to reach carbon neutrality is based on their industry, listed at right. GM selected the listed carbon neutrality dates for each supplier industry based on the technology available to achieve a realistic yet ambitious glidepath.
For the social pillar, we ask suppliers to achieve or exceed a threshold score within the EcoVadis system in the areas of Labor and Human Rights as well as Ethics. Likewise in the governance pillar, suppliers are asked to achieve or exceed a threshold score in the area of Sustainable Procurement within EcoVadis. These scores show a supplier’s commitment to developing a comprehensive social responsibility program as well as robust environmental and social programs within their own supply chains.
Timeline to Achieve Aspirational Carbon Neutrality by Supplier Category
By 2025 or sooner
Suppliers working predominantly
in offices providing software/nonmaterial goods
By 2035 or sooner
Suppliers providing vehicle components and purchased equipment
By 2038 or sooner
Suppliers in carbon-intensive industries providing raw materials or primary resources and services that are focused on freight and transportation
The cross-functional GPSC Sustainability Team is leading efforts to integrate sustainability into all aspects of our supply chain. Focus areas include culture and communication; energy; finance; strategy and policy; supplier engagement; supplier performance and reporting; supply chain; packaging and logistics; and sustainable materials.
We recently announced the GM Supplier Renewable Energy Solutions program in collaboration with Shell Energy. This innovative energy pilot program offers certain suppliers special pricing on renewable energy for electricity, along with other benefits such as complementary carbon tracking. All participants in the program will receive 5% Renewable Energy Credits (RECs) matched to their energy use, and CO2 tracking. Plus, they have the option to purchase additional RECs to help address their carbon footprint efforts.
Another key achievement in 2021 was the publication of a GM Sustainability Partner Guide and Framework to our Tier I suppliers, which communicates our supply chain goals, priorities and processes. The guide outlines GM’s approach to sustainability and includes increasing levels of engagement from our suppliers with four distinct levels: compliance, commitment, growth and leadership. Both the guide and framework are available to suppliers through SupplyPower, the GPSC sustainability portal.
The framework addresses environmental, social and governance topics and allows for supplier-specific goals based on their materiality assessments. Some goals are universal for all suppliers, such as year-over-year carbon reduction targets. The framework also contains requirements that support GM’s vision for more sustainable materials in our products, packaging and logistics, as well as overall supplier sustainability within their own operations. GM’s Supplier Sustainability Framework defines how we measure sustainability goals within our supplier purchasing program.
GM’s Supplier Sustainability Framework enables us to assess sustainability within our Tier I supplier community, including Strategic Supplier Engagement (SSE) and key indirect and logistic suppliers. Additionally, it creates a pathway for GM suppliers to take increasingly bold steps toward a more sustainable future. The framework is comprehensive and inclusive of our Tier I suppliers, allowing each supplier to be recognized for supporting GM’s sustainability goals.
In 2021, we furthered our commitment to create a more sustainable supply chain by working with EcoVadis to rate and understand the sustainability performance of our supply base. EcoVadis allows us to gain visibility of the management systems suppliers have in place to support advancement of the environment, labor and human rights, ethics and sustainable procurement. Working with our suppliers and EcoVadis through their platform, scorecard and performance improvement tools in 2021, we have established a sustainability performance benchmark representing 83% of GM’s Direct Tier I strategic spend. The average score of all GM’s rated suppliers is 51.7 out of 100, which is 15% (or 8.1 points) higher than the average of all suppliers rated by EcoVadis in 2021. Moving into 2022 and beyond, with the integration of EcoVadis in 2021, GM is setting expectations to drive rapid supplier sustainability improvement to meet our ambitious supply chain sustainability goals.
General Motors Sustainable Purchasing Program
Supplier Goals Framework
|Level||All Tier 1 Suppliers||Enrolled Suppliers*|
GM’s baseline requirements
|All Tier 1 SuppliersTerms and Conditions
Supplier Code of Conduct
|Enrolled Suppliers*Score in EcoVadis
Industry specific participation
Making sustainability a priority, creating alignment, setting goals and achieving results.
|All Tier 1 SuppliersMateriality assessment
Goals in all 3 sustainability pillars
(relevant, impactful, transparent, improving, United Nations Sustainable Development Goal (UN SDG) linked)
≥ 3% year-over-year absolute CO2 reduction (Scope 1 & 2)
Actively support GM’s commitment to sustainable materials and packaging
Strong social sustainability commitment
Furthering commitment while expanding sustainability into one’s supply chain.
All Tier 1 Suppliers
≥ 4% year-over-year absolute CO2 reduction (Scope 1 & 2)
Sustainable procurement program
Supplier to cascade goals into own supply base
Minimum ratings (CDP, EcoVadis)
A true accomplishment, recognizing a supplier as a pacesetter in sustainability.
All Tier 1 Suppliers
* Initial enrolled suppliers to include SSE suppliers, key indirect and key logistics suppliers.
CDP Supply Chain Initiative
GM has participated in the CDP supply chain since 2013. We are working with CDP and our suppliers to accelerate action on the environmental front. CDP supports companies in measuring and managing their impacts on climate change, deforestation and water-related risks. GM’s participation in CDP goes beyond our own operational footprint to include information from select suppliers.
Enrolled suppliers in the CDP initiative include all direct material strategic suppliers, a subset of indirect suppliers who are mainly manufacturing-based suppliers and our top strategic logistics suppliers. This group represents more than 80% of our supply chain spend.
During the past two years, we have set a goal of increasing participation among in-scope SSE and key logistic suppliers year-over-year. In 2021, our response rate rose to more than 99% of surveyed suppliers, exceeding previous years for the Climate Change questionnaire. We aim to achieve 100% participation for targeted suppliers in 2022.
As we are all met with the realities and consequences of climate change, our deep relationships with suppliers will help us innovate to find industry solutions. The issues we face today cannot be solved by one company, or even one nation, which is why at GM we are taking an ‘everybody in’ approach that includes each one of our suppliers.”
GM Vice President, Global Purchasing
and Supply Chain—Introduction of GM Sustainability Partner Guide and Framework (2021)