GM asks suppliers to sign carbon neutrality pledge

General Motors Co. has asked its global suppliers to sign a pledge for carbon neutrality, development of social responsibility programs and implementation of sustainable procurement practices in their 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 April 25. "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 have already set their own carbon neutrality targets. Magna International Corp, for instance, is aiming for global carbon neutrality by 2030, and Bosch says it has been carbon neutral since 2020.

In addition to carbon neutrality, the GM-backed pledge calls for social and governance commitments, such as human rights protections and fair operating practices, areas that have become more prevalent as automakers source the metals needed for electric vehicle batteries.

Suppliers representing more than half of GM's about $76 billion direct material annual purchase value last year have already signed the pledge, GM said in the statement.

EcoVadis, a third party, will evaluate how well the companies apply the principles of sustainability and corporate social responsibility into their business and management system, the statement said.

Suppliers who sign the pledge will agree to meet carbon neutrality for their Scope 1 and Scope 2 emissions by dates based on their industry, 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.

GM's pledge with suppliers is part of the automaker's strategy to reduce its carbon footprint. Last year, GM said it aimed to become carbon neutral in its global products and operations by 2040. By 2035, GM aspires to have an all-electric lineup.

John Irwin contributed to this report.