GENERAL MOTORS COMPANY | Sustainable material procurement target at GENERAL MOTORS COMPANY

Status
14.44% votes in favour
AGM date
Previous AGM date
Proposal number
7
Resolution details
Company ticker
GM
Lead filer
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
  • Land use inc. deforestation
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
Resolved: Proponents request that the Company develop a feasible plan to establish procurement targets for sustainable materials within its supply chain and include annual disclosure of progress toward attainment of such targets.
Whereas clause
Whereas: Vehicle manufacturing relies on extraction, processing, and manufacturing of natural resources such as aluminum, steel, rubber and leather – activities associated with intensive environmental degradation and substantial greenhouse gas (GHG) emissions:
-The aluminum and steel sectors emit billions of tons of carbon dioxide pollution annually, accounting for approximately 13% of global GHG emissions., In 2019, vehicle manufacturers consumed 18% of aluminum and 11% of steel, globally.
- Clearing forests for cattle raising is a leading cause of deforestation in Brazil, a country considered a major source of leather for U.S. auto manufacturers.
- Unsustainable practices used to expand rubber tree cultivation in Southeast Asia and in Africa threaten the destruction of biodiverse ecosystems.
General Motors (GM) is working on important sustainability initiatives but has not set trackable procurement goals with clear indicia of progress.
For example, GM is a member of the Global Platform for Sustainable Natural Rubber (GPSNR), with reporting requirements on deforestation and sustainability concerns regarding natural rubber. Yet, GM has not publicly disclosed applicable information about its tire (or leather) deforestation risks or approaches to mitigate those risks. Nor has it set related procurement targets.
In November, GM joined the First Movers Coalition, an organization that urges companies to use their purchasing power to stimulate demand for low carbon materials. GM has yet to set purchasing targets for aluminum and steel aligned with the coalition’s recommended targets.
Meanwhile, competitors Volvo and Mercedes-Benz have taken steps to improve the sustainability of the steel supply chain by participating in the ResponsibleSteel™ standard and certification initiative. Volvo has signed on to the SteelZero initiative, pledging to procure 50% net-zero steel by 2030 and 100% by 2050. Similarly, Audi, BMW, and Mercedes-Benz, participate in the Aluminum Stewardship Initiative, a standard-setting organization that promotes sustainable and responsible aluminum mining and production.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr For As the additional information related to the purchasing of sustainable materials and the company's efforts in integrating sustainability into its supply chain would allow shareholders to determine how the company is managing and mitigating the related risks.
Rothschild & co Asset Management For

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