INTEGRATING SUSTAINABILITY INTO OUR SUPPLY CHAIN CONT. The cross-functional GPSC Sustainability Team is leading efforts to integrate sustainability into all aspects of our supply chain. Focus areas include culture and communication; energy; finance; strategy and policy; supplier engagement; supplier performance and reporting; supply chain; packaging and logistics; and sustainable materials. We recently announced the GM Supplier Renewable Energy Solutions program in collaboration with Shell Energy. This innovative energy pilot program offers certain suppliers special pricing on renewable energy for electricity, along with other benefits such as complementary carbon tracking. All participants in the program will receive 5% Renewable Energy Credits (RECs) matched to their energy use, and CO2 tracking. Plus, they have the option to purchase additional RECs to help address their carbon footprint efforts. Another key achievement in 2021 was the publication of a GM Sustainability Partner Guide and Framework to our Tier I suppliers, which communicates our supply chain goals, priorities and processes. The guide outlines GM’s approach to sustainability and includes increasing levels of engagement from our suppliers with four distinct levels: compliance, commitment, growth and leadership. Both the guide and framework are available to suppliers through SupplyPower, the GPSC sustainability portal. The framework addresses environmental, social and governance topics and allows for supplier-specific goals based on their materiality assessments. Some goals are universal for all suppliers, such as year-over-year carbon reduction targets . The framework also contains requirements that support GM’s vision for more sustainable materials in our products, packaging and logistics, as well as overall supplier sustainability within their own operations. GM’s Supplier Sustainability Framework defines how we measure sustainability goals within our supplier purchasing program. GM’s Supplier Sustainability Framework enables us to assess sustainability within our Tier I supplier community, including Strategic Supplier Engagement (SSE) and key indirect and logistic suppliers. Additionally, it creates a pathway for GM suppliers to take increasingly bold steps toward a more sustainable future. The framework is comprehensive and inclusive of our Tier I suppliers, allowing each supplier to be recognized for supporting GM’s sustainability goals. Assessing Performance In 2021, we furthered our commitment to create a more sustainable supply chain by working with EcoVadis to rate and understand the sustainability performance of our supply base. EcoVadis allows us to gain visibility of the management systems suppliers have in place to support advancement of the environment, labor and human rights, ethics and sustainable procurement. Working with our suppliers and EcoVadis through their platform, scorecard and performance improvement tools in 2021, we have established a sustainability performance benchmark representing 83% of GM’s Direct Tier I strategic spend. The average score of all GM’s rated suppliers is 51.7 out of 100, which is 15% (or 8.1 points) higher than the average of all suppliers rated by EcoVadis in 2021. Moving into 2022 and beyond, with the integration of EcoVadis in 2021, GM is setting expectations to drive rapid supplier sustainability improvement to meet our ambitious supply chain sustainability goals. General Motors Sustainable Purchasing Program Supplier Goals Framework Level 0 Compliance GM’s baseline requirements for our suppliers. 1 Commitment Making sustainability a priority, creating alignment, setting goals and achieving results. 2 Growth Furthering commitment while expanding sustainability into one’s supply chain. 3 Leadership A true accomplishment, recognizing a supplier as a pacesetter in sustainability. All Tier 1 Suppliers Terms and Conditions Supplier Code of Conduct Materiality assessment Goals in all 3 sustainability pillars (relevant, impactful, transparent, improving, United Nations Sustainable Development Goal (UN SDG) linked) ≥ 4% year-over-year absolute CO2 reduction (Scope 1 & 2) Sustainable procurement program Supplier to cascade goals into own supply base Minimum ratings (CDP, EcoVadis) Industry Leader Leading innovator Ambitious targets (Scope 1, 2 & 3, SBTi, Zero Waste) Proactive actions Life cycle assessment (full) Enrolled Suppliers* Score in EcoVadis CDP participation Industry specific participation (e.g. GPSNR) ≥ 3% year-over-year absolute CO2 reduction (Scope 1 & 2) Actively support GM’s commitment to sustainable materials and packaging Strong social sustainability commitment * Initial enrolled suppliers to include SSE suppliers, key indirect and key logistics suppliers. Skip Navigation Introduction Reducing Emissions Design for Environment Technology Customers Safety Diverse Workforce Human Rights Supply Chain Communities Governance 2021 SUSTAINABILITY REPORT 87