GM shareholders have voted against three proposals that sought to increase transparency and ethical practices within the company’s supply chain. The proposals were related to child labor in the electric vehicle (EV) supply chain, deep-sea mineral mining, and transparency of sustainability risks. The decision comes amidst a broader industry push towards sustainable and ethical EV supply chains.
Child Labor in the EV Supply Chain
The first proposal called for GM to demonstrate that its supply chain is free from child labor. Despite the fact that cobalt, a key component in EV batteries, is often linked to child labor, the proposal was defeated. GM’s board argued that the company already follows robust and transparent reporting practices and has a zero-tolerance policy for child labor. GM’s supplier agreements require compliance with laws to avoid child labor and other forms of forced labor.
Deep-Sea Mined Minerals
The second proposal sought a report on GM’s use of deep-sea mined minerals in its production and supply chains. The proposal highlighted the potential irreversible environmental damage caused by deep-sea mining. However, GM stated that it does not currently use deep-sea mining in its supply chain due to scientific uncertainty and has no plans to do so. The company also noted that its suppliers are expected to comply with GM’s processes and policies, which include evaluating environmental impacts of sourcing practices.
Sustainability Risks in the Supply Chain
The third proposal called for a report on sustainability risk in GM’s supply chain. The report would have assessed GM’s commitment to join global emissions reduction efforts, its progress towards procurement targets for low-carbon steel and aluminum, and its dedication to greater disclosure of deforestation risks. However, GM argued that it already follows robust and transparent reporting practices and is committed to using responsibly sourced materials in its supply chain.
Despite the rejection of these proposals, the issues they raise remain pertinent for the automotive industry. As the sector continues to evolve towards more sustainable practices, companies like GM will likely face continued pressure to enhance transparency and ethical practices within their supply chains.
