GM Suppliers See Business Value in Reduced Emissions

General Motors is engaging its supply chain in actions to reduce emissions, mitigate the various companies’ effects on climate change and strengthen their overall business. GM asked about 200 of its suppliers to disclose their energy use and carbon emission data to CDP and offered up resources to help. The 70 percent of invited companies that responded reduced carbon emissions in total by 90 million metric tons, saving a cumulative $23 billion.

GM’s effort to work with these suppliers earned the company a spot on CDP’s Supplier Climate A List. Only 3 percent of the thousands of companies who report to CDP achieved the ranking. GM is among 112 other organizations using their buying clout to drive down emissions across their supply chains.

“We realize we need to take a broader and more holistic look at our environmental impact, and that includes our partners that supply us with parts and components,” said Al Hildreth, GM global energy manager. “We encourage them to manage their carbon footprint and see the business value that stems from increased efficiency and reduced emissions.”

CDP, a global nonprofit that drives sustainable economies, produced the Supplier Climate A Lists at the request of 89 investors with assets of $2.7 trillion. CDP’s data is used by its network of over 800 investors with $100 trillion in assets that believe measuring and managing climate impact can position companies for long-term growth and resiliency.

GM also will serve on CDP’s newly formed supplier engagement board. In this role, the company will offer best practices for encouraging suppliers to disclose and reduce their greenhouse emissions. GM works with supply chain organizations like EPA ENERGY STAR®, the Automotive Industry Action Group and Suppliers Partnership for the Environment, in collaboration with other manufacturers, to support greenhouse gas reduction and improved water efficiency. GM also works with Climate Earth, which delivers lifecycle analyses of emissions and water use for these suppliers.

“By harnessing purchasing power, big buyers have the potential to deliver the large-scale, rapid change that is needed and lead the way towards our sustainable future,” said Dexter Galvin, head of supply chain for CDP.

CDP released the rankings in its new report, the “Missing Link: Harnessing the Power of Purchasing for a Sustainable Future,” which was developed in partnership with BSR and The Carbon Trust. In 2016, CDP named GM to its global Climate A List for its own actions and strategies to address climate change.