GENERAL MOTORS COMPANY | Sustainability risk within supply chain at GENERAL MOTORS COMPANY

Status
13.74% votes in favour
AGM date
Previous AGM date
Proposal number
7
Resolution details
Company ticker
GM
Lead filer
Green Century Capital Management, Inc.
Resolution ask
Report on or disclose
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 the Company issue an annual report providing additional disclosure on
sustainability risks within its supply chain and risk mitigation efforts
Whereas clause
WHEREAS: Vehicle manufacturing relies on extraction, processing, and manufacturing of natural resources
to provide aluminum,1 steel,2 minerals,3
rubber,4 and leather5
- activities associated with intensive
environmental degradation6 and substantial greenhouse gas (GHG) emissions.
The aluminum and steel sectors emit billions of tons of carbon dioxide annually.7 By 2050, auto industry
demand for aluminum is expected to double8 and global steel demand is predicted to increase by 30%,
9
partially attributable to vehicle manufacturing. Without rapid decarbonization, these industries will likely
overshoot net-zero pathways meant to avoid catastrophic global temperature rise.
General Motors (GM) issued low-carbon procurement targets for primary steel and aluminum of 10% by
2030. However, because demand for low-carbon steel and aluminum is surging,10,11 the Company may
face competitive and reputational risks if it does not join broader initiatives aimed at securing additional
supply.
Competitors Volvo and Mercedes-Benz have taken steps to support sustainable steel supply by
participating in ResponsibleSteel, a standard setting organization. Volvo and Polestar signed on to
SteelZero, an initiative that builds demand for low-carbon steel in order to incentivize greater production.
Further, Audi, BMW, and Mercedes-Benz participate in the Aluminum Stewardship Initiative, which
promotes sustainable aluminum mining and production.
Other materials commonly used in vehicle manufacturing are linked to deforestation. Leather sourced
from Brazil is associated with land clearing for cattle raising.12 Rubber tree plantations support the
production of 2 billion tires annually,13 resulting in tropical deforestation in Southeast Asia and Africa,
14
and mining of bauxite, the precursor to aluminum, accounts for 8% of all mineral-related deforestation.
15
Although GM is a founding member of the Global Platform for Sustainable Natural Rubber, it has not
disclosed comprehensive information on deforestation risk posed by rubber cultivation, nor on risk
mitigation. The Company fails to provide similar disclosures for its leather and mineral supply chains.
Supporting statement
SUPPORTING STATEMENT: Shareholders recommend that the report be prepared at reasonable cost
and omit proprietary information, and, in their discretion, encourage the board and management to assess
in the report:
• The pros and cons of joining global value chain emissions reduction efforts, such as the
Aluminum Stewardship Initiative and ResponsibleSteel, and demand aggregation initiatives such
as SteelZero and the Sustainable Steel Buyers Platform.
• Progress toward attaining low-carbon steel and aluminum 2030 procurement targets.
• Enhancing disclosure of deforestation risk associated with GM’s tire, leather, and mineral supply
chains including the potential for adopting targets for eliminating supply chain deforestation

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