General Motors Asks Suppliers to Sign ESG Pledge

(Credit: General Motors)

by | Apr 25, 2022

(Credit: GM)

Today, General Motors announced a new pledge that asks global suppliers to commit to carbon neutrality, the development of social responsibility programs, and the implementation of sustainable procurement practices in their supply chain operations.

The Environmental, Social and Governance Partnership Pledge calls for social and governance commitments, such as human rights protections and fair operating practices. By signing the pledge suppliers commit to:

  • Achieving carbon neutrality for their Scope 1 and Scope 2 emissions by dates based on their respective industry. These are 2025 or earlier for Professional Services, 2035 or earlier for Manufacturing and 2038 or earlier for Raw Materials and Logistics.
  • 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.
  • 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. 

The supplier pledge expands on GM’s goal to establish a collaborative supply chain that endeavors to minimize environmental impact and enhance long-term sustainability. The company says that GM will continue to 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.

According to Marketwatch, “GM said of its about $76 billion direct material annual purchase value in 2021, suppliers representing over 53% of that value have signed the pledge.”

General Motors was one of the 93 US manufacturing plants that earned Energy Star certification from the EPA in 2022. Energy Star certified plants are verified to be among the most energy-efficient plants within their industries. The company also recently announced a new pledge to power Michigan automotive plants in Flint, Burton, and Wyoming with clean energy. 

Stay Informed

Get E+E Leader Articles delivered via Newsletter right to your inbox!

Share This