GM expects suppliers to lead in sustainability

CHARLOTTE, N.C.—Here's the thing about sustainability targets: Time's up.

Because 2050 is just too late, according to Frederick Gersdorff, GM's manager of socially responsible and sustainable supply, said during his keynote presentation July 27 at Smithers' Traction Summit.

"We are at a critical inflection point," Gersdorff said. "We see this decade as the decade that we need to make change. And I would add that is not just this decade. It is this year, it is this month, it is this day, it is this week.

"If we are not making tangible efforts to move forward—if we are making plans out to 2050—that might be a challenge there. If we are making plans for 2050, we need to be looking at what plans we can make today. Many of us will be retired by 2050."

For sustainability goals to be achieved, milestone successes need to take root now, he said. And for the tire and automotive industries, specifically, that entails pushing manufacturers, suppliers and organizations toward clearly defined goals of reducing carbon footprints, increasing the use of renewable materials and creating circular products.

To this end, GM has established guidelines for itself, guidelines intended to ensure that it moves steadily forward, ahead of 2050 expectations. Among those goals:

• Become carbon neutral in operations and products by 2040;
• Eliminate tailpipe emissions from new light-duty vehicles by 2035; and
• Set goals in science-based targets for progress tracking.

As an OEM, GM takes responsibility for pulling the entire industry forward toward these goals for more sustainable operations and products. That means building the best possible vehicles with the most sustainably made products, from the most responsible sources to ensure a lifetime of circularity and carbon neutrality.

"When GM thinks about sustainability," Gersdorff said, "we think about sustainability with this definition from the Brundtland Commission back in 1987: It's about 'meeting our needs without compromising the ability of future generations to meet their own needs.' "

To meet today's needs without compromising the future, GM is betting on building the most sustainable supply chain possible. And to do that, the Detroit-based auto maker works closely with its suppliers to ensure that every business within the supply chain—whether it's a raw materials supplier or a rubber product maker—has built sustainable manufacturing and sourcing into their own operations.

"We, as an OEM—and you as a supplier in many cases—we own our supply chains," Gersdorff said. "We own responsibility for what is happening in our supply chains. And if we don't believe it, we just need to look to regulations that are coming that say: Thou shalt understand your supply chain. Thou shalt be responsible."

To help ensure that it is partnering with companies and organizations that align with its vision for sustainability, GM has set carbon neutrality targets that it believes helps to raise the standards for its suppliers and partners.

GM expects its professional service partners to set goals that target 2025 for carbon neutrality. Manufacturers within the GM supply chain, Gersdorff said, should aspire to reach carbon neutrality goals by 2035, and raw materials and logistics partners should aim to do the same by 2038.

While participation in third-party verification of carbon neutrality initiatives is voluntary, GM looks to companies that have aligned with these verification initiatives. Certification from CDP and EcoVadis, for instance, help GM better track sustainability performance along its supply chain.

"It is critical that we understand the players in our supply chain because it helps us to start to define our strategy," Gersdorff said. "If we don't know what's in our supply chain, we can't possibly understand the risks in our supply chain. That means we can't adequately make a strategy to address the risks."

Understandably, Gersdorff said, the sustainability journey can feel overwhelming and, at times, perhaps impossible. But everyone within every company or organization has a critical role to play in shaping the direction of the entity. The work each person does to push a given company toward its sustainability goals pushes the entire industry forward.

And the good news about individuals taking responsibility for the sustainability future, he added, is that leaders emerge—maybe even in places you least expected.

"We need each of us to be leaders. Not only for our institutions at the top," Gersdorff said. " … Who is stepping up? Who is going to be the next leaders in sustainability? We need to be looking for these folks, we need to be investing in these folks, educating them, giving them opportunities. This is critical for our futures."