Boston, June 7, 2024 – Recently, 13.7% of votes were cast in favor of a Green Century proposal asking General Motors to improve the sustainability of its aluminum, steel, rubber, and leather supply chains. Specifically, the proposal requested that General Motors issue an annual report providing additional disclosure on these sustainability risks within its supply chain, as well as on risk mitigation efforts.
“Ultimately, we don’t think GM wants to be associated with exacerbating global warming or destroying the rainforest,” said Leslie Samuelrich, Green Century President. “If the company truly wants to clean up its supply chain and ensure a timely transition to a sustainable future, it should invest now in clean, green, deforestation-free supply chains.”
The aluminum and steel sectors emit billions of tons of climate pollution annually and will require rapid decarbonization to avoid catastrophic global warming. Leather and rubber, both commonly used in vehicle manufacturing, are linked to tropical deforestation from Brazil to Southeast Asia.
General Motors’ goals to achieve carbon neutrality by 2040 and sell only electric light-duty vehicles by 2035 may depend in part on how it responds to concerns raised by Green Century’s proposal.
So far, General Motors has not established clear targets for procuring green steel or aluminum, nor has it joined industry associations such as ResponsibleSteelTM that are working to increase customer demand for green steel. The company may also be sourcing leather and rubber from regions associated with deforestation and currently lacks the disclosure, targets and metrics to indicate progress toward deforestation-free supply chains.
“As one of the largest auto companies in the world, GM has a leadership role to play in addressing climate and deforestation risk,” said Annie Sanders, director of shareholder advocacy at Green Century. “Many European auto companies, such as BMW, Mercedes, Volkswagen, and Volvo, are already making commitments to source low-carbon metals and protect forests. GM has an opportunity to both catch up to these peers and lead the way for American manufacturers.”