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Our Message 2005/06 Corporate Responsibility Report Chairman’S Message

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Our Message 2005/06 Corporate Responsibility Report Chairman’S Message Our Message 2005/06 Corporate Responsibility Report Chairman’s Message General Motors is committed to sound corporate citizenship in all aspects of our business. Above all, we know that maintaining a strong company will help ensure our continued commitment to the communities in which we live and work, and to the social interests we have identified as important to our business and our stakeholders. In the energy and environment arena, we at GM believe it is highly unlikely that oil alone will supply all of the world’s rapidly growing automotive energy requirements; we know there is no single solution that will offer sustainable transportation; and we are concerned about the concentration of greenhouse gases in the atmosphere. In Sound Citizenship and Strong our view, the key to addressing these concerns is energy Performance diversity. As part of the solution, we’re dramatically “General Motors is committed to sound intensifying our efforts to displace petroleum-based fuels — by building a lot more vehicles that run on alternatives, corporate citizenship in all aspects of such as E85 ethanol, and by significantly expanding and our business. Above all, we know that accelerating our commitment to electrically driven vehicles, maintaining a strong company will help such as hybrids; advanced “plug-in” hybrids; extended range electric vehicles, like our Chevy Volt concept; and hydrogen ensure our continued commitment to fuel cell vehicles, like our drivable Chevy Sequel. the communities in which we live and GM’s corporate responsibilities extend to other areas as well, work and to the social interests we have including safety and diversity. At GM, we strive to make each identified as important to our business new model safer than the one it replaces. We are a leader in global research, engineering, and innovation to improve road and our stakeholders.” safety and reduce injuries and fatalities. The application of technologies such as OnStar and StabiliTrak® to our entire Rick Wagoner North American vehicle line by 2010 is an example of our Chairman and Chief Executive Officer safety strategy in action. We also have a commitment to keeping our employees safe on the job. GM’s Global Safety team facilitates the sharing and implementation of best practices that have proven successful in other parts of the company. The result is that our plants are among the safest in the industry. Finally, GM employs one of the most diverse work forces in the global business community — 284,000 people around the world — and we are committed to promoting diversity within our ranks. We believe the diversity of our workforce helps us design, build, and market vehicles that best meet the needs of our diverse consumers. Thank you for your interest in General Motors. Rick Wagoner Chairman and Chief Executive Officer General Motors 2005/06 Corporate Responsibility Report 1-1 Our Message | About This Report GM’s long commitment to transparency is evidenced by our corporate reporting on non-financial matters. We published our first environmental report in 1994 in consultation with the Ceres organization. The report has evolved over the years from a focus on GM’s environmental performance in the United States to a corporate responsibility report that covers our global operations in all four regions. 1994 1995 1996 1997 -CERES Endorsement -Environmental, -Environmental, -Community Participation -Environmental Report Health & Safety Report Health & Safety Report -Product & Traffic Safety -U.S. Based -North American Based -North American Based -Supplier Relations -Printed report 1998 1999 2000 2001 -Stakeholder Relationships -Economic, Social -Economic, Social -Sustainability Report -Diversity & Environmental & Environmental -Regional Information -Philanthropy Report -Web Based Report -Web Based Report Merged -Global Reporting Initiative -Global Reporting Initiative 2002 2003 2004 2005 -Corporate Responsibility -GMAbility -GRI “In Accordance” -One Global Report General Motors 2005/06 Corporate Responsibility Report 1-2 Our Message | About This Report 2002 GLOBAL REPorTING INITIATIVE GUIDELINES GM’s Corporate Responsibility reporting has followed the 2002 Global Reporting Initiative Guidelines (GRI) since their inception. This fulfills the commitment to transparency and accountability — a commitment that is increasingly important for global companies with multiple stakeholders. The report is published online at gmresponsibility.com, with PDF files available to download and print on demand. In the 2005/06 report, GM describes its progress in the traditional GRI focus areas of product, economic, social and environmental performance. These issues are carefully managed according to GM’s vision and strategy and are guided by its widely renowned internal governance process. GM presents these achievements within the context of key issues that impact our business. This report covers the year 2005 and 2006 through mid year. The data are primarily calendar year 2005 information. Our Corporate Responsibility Report was prepared internally by a team of GM employees and reviewed and endorsed by an Editorial Review Board comprised of GM Leaders and subject matter experts. Our previous Corporate Responsibility Report covered calendar year 2004 and part of 2005. The full report is available on www.gmresponsibility. com. We continue to fully integrate the report with www.gmability.com, the company’s Corporate Responsibility web site. General Motors 2005/06 Corporate Responsibility Report 1-3 Performance at a Glance 2005/06 Corporate Responsibility Report General Motors 2005/06 Corporate Responsibility Report cover-b Performance at a Glance | Scorecard GM’s environmental, economic, product and social Key Performance Indicators (KPIs) are shown below in our Performance Scorecard. The tables cover KPIs comparing 2004 to 2005 and some of our five year targets. Economic Indicators 2004 2005 Financial KPIs 2004 Annual Report pg. 46 2005 Annual Report pg. 45 Product Indicators 2004 2005 Performance Fuel Economy, miles per gallon (US) - Car 29.4 28.9 2 % decrease - Light truck 21.4 21.4 No change CO2 per mile, by model year (US) - Car 302gm 307 2 % increase - Light Truck 439 430 2 % reduction Performance Environmental Indicators 2004 2005 2000-2005 target Energy use (GWh) ** 31,686 31,442 Reduced 14.8 % (exceeded 10% Target) CO2 emissions (metric tons) 12.35 million 11.68 million Reduced 15.5 % (exceeded 8% Target) Waste (metric tons) *** 4.08 million 3.53 million Reduced 23.4 % since 2000 (target 15%) Recycling rate 86.5 % 88 % Increased 7.3 % since 2000 (target 15%) Water use (cubic meters) 57.5 million 60.7 million Reduced 19.0 % (exceeded 10% Target) 118 of 118 manufacturing facilities have Sites certified to ISO 14001 99 % 100 % implemented an EMS 1 metric ton = 1,000 kilograms = 2,200 pounds Performance Social Indicators 2004 2005 2004-2005 Community donations/sponsorships (US$)* $68 million $61.2 million Reduced 10 % Diversity: hourly female employees 18.4% 17.3% Reduced 6 % (U.S. workforce) Diversity: salary female employees 25.9% 24.8% Reduced 4.3 % (U.S. workforce) Diversity: hourly minority employees 25% 24% Reduced 4 % (U.S. workforce) Diversity: salary minority employees 20% 20% No change (U.S. workforce) Recordable injury rate (per 100 employees) 2.98 2.85 Reduced 13.4 % (North American workforce) Lost time accident rate (per 100 employees) 0.26 0.24 Reduced 7.7 % (North American workforce) * See currency converter at www.oanda.com, a non-GM site, please check privacy policy. ** See energy conversion factors at physics.nist.gov, a non-GM site, please check privacy policy. *** See unit conversion factors at ts.nist.gov, a non-GM site, please check privacy policy General Motors 2005/06 Corporate Responsibility Report 2-1 About Us 2005/06 Corporate Responsibility Report General Motors 2005/06 Corporate Responsibility Report cover-c About Us | Introduction General Motors designs, builds, and markets cars and trucks worldwide. In 2005, GM sold nearly 9.2 million cars and trucks, the second highest sales volume in our history. GM has manufacturing operations in 33 countries and sales operations in 200 countries. General Motors has a long tradition of success and innovation within the automotive business, which was founded in 1908. Today the company’s global headquarters are at the GM Renaissance Center in Detroit, Michigan, USA. GM’s business units are located in North America (GMNA), Europe (GME), Asia-Pacific (GMAP), and Latin America, Africa and the Middle East (GMLAAM). Taking the Lead General Motors is a global designer and manufacturer of cars and trucks with Brands and Partners operations in 33 countries and sales networks in 200 countries. Guided by a six-point set of core values that em- brace continuous improvement, customer enthusiasm, innovation, in- tegrity, teamwork and individual respect and responsibility, GM is a leader not only in the automotive industry, but also in Since the 1920s, GM has been driven by strong, distinctive corporate responsibility. brands. Our success in the marketplace is directly related to innovative products that meet and exceed our consumers’ expectations. Going forward, we’re putting great emphasis on building and differentiating each of our automotive brands around the world, and accelerating our drive for consistent, world-class distribution networks. GM’s Brands GM’s cars and trucks are sold under the following brands: Buick Cadillac Chevrolet Daewoo Holden Hummer GMC Opel Pontiac Saab Saturn Vauxhall General Motors 2005/06 Corporate Responsibility Report 3-1 About Us | Brands and Partners Parts and accessories are sold under the GM, GM CommUNICATING VALUES TO Goodwrench, and ACDelco brands through GM emPLOYeeS Service and Parts Operations (SPO). In the preface to “Winning OnStar (www.onstar.com) is with Integrity — Our the industry leader in vehicle, Values and Guidelines for security, and information Employee Conduct,” GM’s services in the U.S. Chairman and CEO Rick Wagoner states: Additional information about GM’s brands is available on GM Team Members: the company’s corporate web site, www.gm.com, and The pace of change at GM has never been faster, in our 2005 Annual Report.
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