GHG Emissions, Industrial - April 26, 2022
GM Asks Suppliers to Sign ESG Pledge
General Motors announced a new pledge that asks global suppliers to join the company in a commitment to carbon neutrality, social responsibility programs, and sustainable procurement practices in their supply chain operations.
By signing the Environmental, Social and Governance Partnership Pledge, suppliers commit to achieving carbon neutrality for their Scope 1 and Scope 2 emissions by dates based on their respective industries, ranging from 2025 to 2038.
The pledge also calls for achieving by 2025 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.
“There are economic and social imperatives in lowering emissions and addressing climate change while cultivating a just transition,” said Jeff Morrison, GM vice president of Global Purchasing and Supply Chain, in a statement. “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.”
GM announced that of its approximately $76 billion direct material annual purchase value in 2021, suppliers representing over 53% of that value have already signed on.
The 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. GM will continue to provide support as it identifies opportunities for significant reductions in GHG emissions and energy use and develops tools to help remove barriers in the transition to renewable energy.
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