General Motors Company

Although the largest share of an auto manufacturer’s emissions comes from its fleet emissions while the vehicle is on the road, the manufacturing process still emits a significant amount of greenhouse gases. General Motors has successfully reduced its manufacturing emissions through improvements in energy efficiency at its production sites, making progress on its goal to use 100 percent renewable electricity under the RE100 initiative by 2050. Given that it has successfully met the manufacturing emissions reduction target set for the low-carbon pathway, General Motors should shift its focus towards reducing fleet emissions.

Fleet emissions pathway

General Motors’ current fleet emissions are significantly higher than the target set for the low-carbon pathway. High-emitting vehicles dominate sales in its principle markets, namely the US and China. Furthermore, as General Motors plan to move out of the European market and is no longer subject to its regulations, then the company’s overall average fleet emissions are likely to increase. General Motors could reduce its fleet emissions by rapidly increasing the share of sales that come from low-carbon vehicles, especially in China where upcoming regulations will require the company to electrify more of its fleet.

Decarbonisation of the supply chain is key to achieving ambitious targets for both fleet and manufacturing emissions reductions. General Motors is actively working to reduce emissions in its supply chain through its involvement in the CDP Supply Chain Program and the US Environmental Protection Agency SmartWay programme, which recommends strategies for decreasing fleet emissions. General Motors should further collaborate with its suppliers on research and development efforts towards low-carbon products.

General Motors put forth a National Zero Emissions Vehicle (NZEV) programme, despite the US government’s current efforts to ease emissions standards. The company’s pro-electrification programme proposes to establish ZEV requirements (by credits) starting at 7 percent in 2021, increasing annually by 2 percent until 2030. This initiative may add seven million long-range electric vehicles to the road by 2030. General Motors could further increase the proposal’s requirement, which would only reach a 25 percent ZEV requirement by 2030. Assuming that one ZEV is equivalent to one low-carbon vehicle, this is less than the 29 percent under the International Energy Agency’s Energy Technology Perspectives pathway set for the transportation sector.

General Motors’ overarching vision is “a world with zero crashes, zero emissions and zero congestion”. This vision also embraces a commitment to an all-electric future, though does not provide a timeline. General Motors is also committed to achieving 100 percent renewable electricity by 2050 under the RE100 initiative.

General Motors plans to meet its fleet emission reduction targets through the use of advanced technology. The company states it will prioritise investments in battery electric vehicles and increase resources for electrification. General Motors has also announced that it will shift 75 percent of its labour force – around 3,000 employees – from working on internal combustion engine vehicles to electric vehicles. Furthermore, the company plans to meet its renewable energy goals through power purchase agreements.

General Motors is on track to meet its renewable energy goals at the company’s operational facilities. It has also invested in next generation battery architecture. Cadillac already revealed that it is due to become the company’s main electric vehicle brand once the battery is ready for use. General Motors also announced that it will collaborate with charging network providers and an engineering company on charging infrastructure to facilitate electric vehicles’ market penetration.

General Motors’ fleet emissions remain higher than the targets set for the low-carbon pathway. Also, the company’s share of sales from low-carbon vehicles has only slowly increased, as has its internal combustion engine efficiency.

General Motors’ low-carbon achievements include exploration of innovative business models and substantial investments in new battery technologies. However, high fleet emissions and missing strategic elements in its low-carbon transition plan undermine the company’s success in a low-carbon economy. Though it has demonstrated resilience coming out of bankruptcy in 2009, in order to improve its climate resilience, General Motors needs to rapidly increase its share of sales from low-carbon vehicles and cut its fleet emissions.