Although establishing sustainability targets may appear straightforward, achieving them presents a distinct challenge. Many companies find scope 3 supply chain emissions particularly difficult to address, revealing the need for supplier engagement and collaboration. However, given the extensive reach of supply networks, how does one effectively drive transformative action?
In 2020, multinational automotive manufacturing company General Motors (GM) created a space for key suppliers to come together and engage in sustainability focused conversations. The GM Supplier Sustainability Council (Council) was created as an extension of the Supplier Business Council (SBC) who work intimately with the Global Purchasing and Supply Chain (GPSC) organization to manage supplier relations and implement sustainability initiatives. The SSC is composed of 14 key suppliers, in addition to a team of cross-functional GM employees and serves as a representative voice for the wider supply chain. The Council has proved an instrumental tool for supplier engagement, giving members the opportunity to contribute to the success of the entire organization.
In this 10-step guide, you will uncover top tips for supplier engagement and learn how General Motors has been able to inspire lasting change across a global supply chain.
Step 1 - Establishing Purpose and Objectives
The first step to assembling your own sustainability council is to establish the intent. What is the purpose of this group? What are the key objectives?
GM aligned the Council’s purpose with its company vision of zero crashes, zero emissions, and zero congestion. This vision is supported by engaging suppliers to help build a more sustainable future for companies, suppliers and communities alike. The Council plans to realize their purpose by:
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Helping to enhance GM’s GPSC sustainability strategy and execution through collaboration, communicating lessons learned, and being the “sounding board” for the GM team
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Collaborating with GM to be lead-change agents and advocates for GPSC’s sustainability initiatives and strategy
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Helping to grow the individual organization’s sustainability programs and those of their supply chains
The Council’s objectives were designed to meet both individual member organization needs in addition to those of GM and include:
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Enhancing individual supplier sustainability programs through participation
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Building a robust program that helps GM’s GPSC achieve their ESG goals
Step 2 - Selecting Your Suppliers
Once you have set clear objectives for your sustainability council, it's time to start thinking about your members.
As the Council was created as a branch of the existing SBC, the first wave of members recruited for the Council at GM were all existing SBC members. By maintaining consistent communication between the two councils, GM can ensure everyone stays informed of the latest sustainability business initiatives.
Step 3 - Finding the Right Fit for You and Your Suppliers
Now that you have your council members, you will need to find a working style that suits your suppliers as well as your business.
At GM, the Council initially met monthly but shortly transitioned to bi-weekly, 1-hour virtual meetings. All meeting agendas follow a similar structure:
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Begin with a safety, sustainability or DEI message that is either delivered by an internal GM employee or Council member
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Set out 1 or 2 key sustainability topics agreed on by the Council
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A brief presentation on the chosen topic
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Follow with a Q&A or group discussion
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If time permits, the members will move to a roundtable discussion where they are asked
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What is one thing you’re working on that you’re proud of?
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What is one thing you need help with?
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In addition to this, the Council frequently brings forward external sustainability experts to speak to a particular topic and will even have its own members deliver presentations on their internal sustainability developments to help educate other members of the Council.
Step 4 - Galvanizing Relationships Through Collaborative Action
Having assembled your members and decided on a meeting format that fits everyone’s needs, it’s time to think about how you can begin to strengthen relationships. Engaging suppliers on your sustainability journey creates a symbiotic relationship beneficial to all parties directly involved and their respective suppliers.
At GM, suppliers are strongly encouraged to bring forward new ideas, projects or external collaborations to share with Council members. This approach fosters a channel of open dialogue which has compelled Council members to gather independently outside of meetings to expand upon exciting discussions, working collaboratively to develop sustainability initiatives.
One specific example of an initiative strongly backed by the Council was the GM Supplier Pledge. The Pledge was brought to the Council for feedback before being passed through for final approval from GM. Supplier support was instrumental in approving pledge goals. In addition to this, the Council team has contributed to GM supplier sustainability initiatives by joining GM’s Energy Treasure Maps program and participating as guest speakers at GM supplier sustainability symposiums.
“By being a member of the Council I see the possibility to co-create a more sustainable supply chain for GM and the industry. There is value for us because we are learning from others. We are committed to bring value to the group by sharing our knowledge in areas where we might be advanced.”
- Marc Winterhalter, Nemak
Step 5 - The Ripple Effect
Hopefully you are seeing the wider impact of your sustainability council as positive change begins to ripple throughout your supply chain.
The impact of GM’s Council is evidenced through the subsequent branching of sustainability councils by their suppliers. For example, earlier this year, GM supplier AAM created its own sustainability council using the GM SSC as a blueprint.
To date, roughly 70 suppliers have attended GM workshops to help guide suppliers in creating their own sustainability councils. The suppliers who attended the workshops became cohort groups themselves, resembling the original Council. Several suppliers were eager to develop their own sustainability councils with GM encouraging those on the fence to challenge themselves and attend the workshops as an active listener, giving them an opportunity to ask questions and learn from one another.
Step 6 - Engagement Retention
Having established your sustainability council and triggered a ripple effect across your supply network, it is crucial to retain engagement levels and keep your suppliers excited.
By taking a three-pronged approach, GM has created a network that extends far beyond itself:
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Follow up with cohort members.
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Speak with your members to find out how frequently they are meeting, who they are inviting, and the key topics that are being discussed.
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Offer support
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Attend their council meetings and share your knowledge. What topics have you covered in the past that could benefit your suppliers and their supply chain?
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Build a network
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By sharing contact information across groups, you can help create a community that will support one another as they embark on their sustainability journeys.
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“GM’s Supplier Sustainability Council grants our team direct and valuable insight into GM’s sustainability priorities, allowing us to better serve our customer’s needs. The Council is also a rare platform through which we can share lessons learned with other GM suppliers and collaborate with them on solutions to shared challenges.”
– Margarita Kruyff, Ryder System, Inc.
Step 7 - Refinement & Expansion
With your sustainability council established and your members engaged, it's time to start thinking about how you can refine your processes.
Asking for feedback is one of the most effective ways to improve. At GM, Council members are a real driving force in the refinement of sustainability initiatives. By bringing forward ideas to the Council and asking for honest feedback, the team at GM is able to quickly turn ideas into action.
Communicating your success is important if you want your network to grow. By sharing its journey through the GM Sustainability Report, in addition to updates to the SBC, GM has been able to demonstrate its impact and help inspire network-wide change.
Step 8 - Leading Forward in the Wider Community
Having set the standard and communicated your success, you can then start to think about how you can inspire change in your wider communities.
For example, GM supported the Automotive Industry Action Group (AIAG) with the development of a new E-learning platform that required additional funding. After presenting the proposition to the Council, members were able to support AIAG in their fundraising efforts and launch the platform.
Step 9 - Leveraging Relationships
As a case study, working with EcoVadis provided GM with a way to measure and recognize the Council with their success and progress made in their respective sustainability journey.
At GM, Tier 1 suppliers are required to have an EcoVadis rating, ensuring a standardized approach that has proved beneficial for measurement discussions and new emerging topics.
EcoVadis has also been able to provide ongoing support for Council members, attending Council meetings to discuss the platform and provide expert insight on specific questions.
Step 10 - Driving Continuous Improvement
So, what does the future look like and how can you champion positive development?
GM's next step is to leverage the insights gained from the initial cohorts and tailor the workshops to effectively address the requirements of future suppliers. In addition to onboarding new suppliers into the Council, GM intends to organize more face-to-face events with the group to enhance engagement and facilitate open communication, thereby creating an improved environment for collaboration.
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