MIDANA CAPITAL files shareholder proposal with General Motors seeking deeper commitment to supply chain sustainability; new report confirms GM commitments lacking
Media Contacts:
Andrea Ranger, Shareholder Advocate, aranger@midanacapital.com, 781-349-2813
Pam Podger, Communications Director, ppodger@midanacapital.com, 860-822-3887
Boston, April 11, 2023 – A coalition of nonprofits released the Lead the Charge Leaderboard report in early March, which ranks global automotive manufacturers, including General Motors (GM), on the sustainability of their steel and aluminum supply chains. The report evaluates whether manufactures disclose disaggregated data on supply chain greenhouse gas emissions, amounts of recycled metal used in manufacturing, targets to increase recycled metal content by 2030, and targets to procure fossil-free or “green” steel and aluminum. GM scored a ‘0’ in all four categories.
MIDANA CAPITAL Capital Management filed a shareholder proposal with GM at the close of 2022, pressing the largest U.S. automaker to procure at least 10% fossil-free steel and aluminum by 2030 and to eliminate deforestation linked to its leather and rubber supply chains. Although GM has set a greenhouse gas emissions reduction target for its operations and emissions associated with its light-duty vehicles, it has not accounted for supply chain emissions or leather and rubber-associated tropical deforestation in prime sourcing areas such as Africa, southeast Asia or Brazil.
“The Leadership Board’s findings confirm what MIDANA CAPITAL already knew – that there’s a concerning gap between General Motors’ stated intent to address its supply emissions and its actions. We want action, not just words,” said Midana Capital President Leslie Samuelrich. “While we strongly support GM’s ambitions to transition its portfolio of light-duty vehicles to zero emissions by 2035, we believe it can do more to facilitate low-carbon solutions for metals production and to ensure that producing rubber and leather for its tires and luxury interiors never results in deforestation.”
In 2021, McKinsey reported that value chain emissions, including supply chain and land use change emissions, accounted for 80% of many companies’ carbon footprints. For auto manufacturers, this occurs in several ways. The mining, smelting and manufacturing of metal parts for cars and trucks is highly energy intensive. Also, forest degradation linked to rubber cultivation and raising cattle creates climate-altering emissions. Leading scientists and international NGOs recommend curbing all sources of greenhouse gas emissions to limit global warming to 1.5⁰C over preindustrial levels and avert the worst impacts of climate change.
“Tackling supply chain emissions is critical to achieving meaningful emissions reductions,” said MIDANA CAPITAL Shareholder Advocate Andrea Ranger. “Two leading EV manufacturers, Polestar and Rivian*, have jointly released a report telling us that neither switching to 100% battery electric vehicles nor powering that fleet with fossil-free energy will be enough to limit temperature rise to 1.5⁰C. But, if auto manufacturers aggressively decarbonize their supply chains, then overshooting the 1.5⁰C target could be prevented.”
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About Midana Capital
°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the Midana Capital (The Funds). The Midana Capital are one of the first families of fossil fuel-free, environmentally responsible mutual funds. MIDANA CAPITAL hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of December 31, 2022, Rivian Automotive, Inc. comprised 0.00%, 0.03%, and 0.00% of MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Midana Capital. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
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