General Motors has requested its suppliers to sign a pledge of carbon neutrality showing their commitment to social responsibility programs and implementing sustainable procurement practices in supply chain operations.
"There are economic and social imperatives in lowering emissions and addressing climate change while cultivating a just transition," Jeff Morrison, GM vice president of global purchasing and supply chain, said 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."
Many suppliers already started on a path toward carbon neutrality. Magna set a goal of global carbon neutrality by 2030, and Bosch reports being carbon neutral since 2020.
They are not alone. Many major suppliers have pledged to become carbon neutral in the years to come. For instance, Denso Corp. aims to be carbon neutral by 2035; Faurecia will be carbon neutral for scope 1 and scope 2 internal emissions by 2025; ZF Friedrichshafen and Continental AG by 2040; Hyundai Mobis promises net-zero emissions by 2045; and Aisin Corp., Lear Corp. and Valeo all promise to be carbon neutral by 2050.
GM also has asked suppliers for social and governance commitments, such as human rights protections and fair operating practices.
Suppliers representing over half of GM's estimated $76 billion direct material annual purchase value already signed the pledge, GM said in the statement.
GM will have EcoVadis, a third party, evaluate how well suppliers apply the principles of sustainability and corporate social responsibility into their business and management system, the statement said.
Suppliers who sign the pledge are agreeing to meet carbon neutrality for their Scope 1 and Scope 2 emissions by dates ranging from 2025 to 2038. They also must achieve a minimum score of 50 in both the EcoVadis Labor & Human Rights and Ethics pillar and the EcoVadis Sustainable Procurement pillar by 2025.
Originally posted on Auto Dealer Today
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