Moving Forward 2016 SUSTAINABILITY REPORT IN THIS REPORT VEHICLE EFFICIENCY & CUSTOMERS VEHICLE SAFETY EMISSIONS TALENT ETHICS pg 37 pg 44 pg 55 pg 72 pg 90 OPERATIONS SUPPLY CHAIN MOBILITY COMMUNITY GOVERNANCE pg 98 pg 117 pg 130 pg 140 pg 151 Aspirations 3 Impacts CEO Message 4 Customers 37 2016 Highlights 10 Vehicle Safety 44 Vehicle Efficiency & Emissions 55 Corporate Profile 11 Talent 72 Regional Messages Ethics 90 North America 13 Operations 98 South America 16 Supply Chain 117 Europe 19 Personal Mobility 130 International 22 Community 140 China 25 Governance 151 Sustainability Road Map Q&A 27 GRI Content Index 156 Sustainability Strategy 30 UNSDGs 165 Stakeholder Engagement 32 UNGC 167 Reporting Practices 34 Statement of Assurance 168 Footnotes 169 What We Aspire To Do We achieve sustainable progress by setting our sights high. CUSTOMERS VEHICLE SAFETY PRODUCTS Earning Customers Imagining Zero Injuries Advancing Zero for Life Emissions Vehicles TALENT ETHICS & GOVERNANCE OPERATIONS Realizing Everyone’s Full Transparency Positive Environmental Potential & Integrity – Always & Social Impact SUPPLY CHAIN MOBILITY COMMUNITY Positive Environmental Mobility for Everyone, Safe, Smart & Sustainable & Social Impact Everywhere Communities LEADERSHIP > CEO Message To Our Stakeholders new mobility solutions that lead to a world with zero emissions, zero congestion and zero crashes. At GM, we understand that the vehicles we make and the way we make them impact our environment and communities. We take this responsibility to heart. Today, we use less energy and water, generate less waste and emit less carbon to manufacture a vehicle than ever before. Our solar, landfill gas, hydro and waste-to-energy applications make us one of the largest industrial users of renewable energy in the world. Our focus on efficiency also extends to materials and logistics, where we continue to generate significant savings. These are wins for our business, customers and investors, and wins for the environment and communities that surround us. Strategy & Governance WE ARE FOCUSED ON At GM, we are executing a strategy that builds on LONG-TERM SUSTAINABILITY the strength of our core business and leverages our technical expertise to lead the future of personal At General Motors, we are working to create a mobility. As always, we continue to put the customer company that all stakeholders value, people aspire at the center of everything we do. Our goal is to to work for and communities are proud to embrace. make GM the world’s most valued automotive We start with a clear understanding of our promise: company, and we are making good progress, as • We are committed to safety in everything we do. evidenced by GM’s record financial and operating • We earn customers for life. performance and our strong outlook for 2017. • Our brands inspire passion and loyalty. • We translate breakthrough technologies into GM’s Board of Directors are committed to vehicles and experiences that people love. overseeing our integration of environment, social • We create sustainable solutions to improve the and governance (ESG) principles throughout the communities in which we live and work. company. This oversight includes an annual sustainability review by the Board and periodic Environmental stewardship and sustainability reviews of ESG issues by the Board’s Governance are part of our business model and core to our and Corporate Responsibility Committee. The operations. Social and technological changes are Board is committed to elevating the company’s rewriting the rules of vehicle use and ownership, and leadership profile and reputation among investors, I believe the auto industry is changing more today policymakers and others on ESG issues and practices, than it has in the last 50 years. This transformation and believes GM has a unique opportunity and gives GM an unprecedented opportunity to develop responsibility to address these important issues. 4 2016 SUSTAINABILITY REPORT LEADERSHIP > CEO Message The Board has also modified GM’s Short-Term GM Student Corps is an innovative summer Incentive Plan, beginning in 2017, to incorporate internship program in which GM retirees and an individual performance component, which, for college students mentor high school students certain positions, will include sustainability measures. working on community-service projects in their Linking total compensation to the achievement of own schools and neighborhoods. In 2016, GM these individual measures will increase focus on Student Corps involved 130 students from Detroit- efficiency and performance across the business for area high schools. Separately, through our employee our sustainability initiatives. volunteer program, more than 12,000 GM employees volunteered nearly 110,000 hours in 2016 with Enhancing Life’s Journey 148 different nonprofit organizations. At GM, we are committed to our core values of customers, relationships and excellence. We act GM is an industry leader in using technology with integrity, take accountability for results, do to solve big problems, improve the planet and what we say we are going to do and do the right enhance peoples’ lives. In 2016, we achieved our thing, even when it is hard. 2020 commitment to generate 125 megawatts of clean energy four years ahead of schedule. Building In 2016, we revamped our global philanthropy and on that success, we announced a plan to source all corporate-giving strategy to better reflect and align electrical power for our 350 facilities in 59 countries our priorities as a responsible corporate citizen, with renewable energy by 2050 – the only automaker specifically focusing on areas where we believe to make such a commitment. we can have a direct impact. Around the world, we now focus on expanding and improving science, 2016 also marked a record year for our landfill-free technology, engineering and math (STEM) education, commitment. We added 23 new sites last year and advancing vehicle and road safety and promoting now have a total of 152 landfill-free sites worldwide – economic empowerment in the communities where more than any other automaker – including 100 we live and work. For businesses to thrive, we know manufacturing sites. This exceeds our 2020 landfill- that communities must flourish. free target – again, four years ahead of schedule. 2017 Chevrolet Cruze Hatchback. 2016 SUSTAINABILITY REPORT 5 LEADERSHIP > CEO Message We continue to pursue more landfill-free operations Our team has changed rapidly in recent years. with the goal of becoming a zero-waste company. Today, 35 percent of our salaried employees have worked at the company less than four years. Many We are also expanding our focus to embrace the of our new hires come from the same sources that circular economy and the opportunities it offers to feed the global tech economy. In fact, our applications drive broader social and economic benefits. One from Silicon Valley were up more than 100 percent example is our water-bottle recycling effort in in 2016. Around the world, GM job applications were Michigan. Working with the city of Flint and six up more than 24 percent last year. regional GM facilities, we collected more than four million used water bottles in 2016 and worked At GM, we recognize growing concerns around with local companies and organizations to recycle the world about the impact of globalization and the bottles into insulating fleece used in coats for technology on labor markets, and we are committed the homeless, air-filtration components for use at to helping our employees acquire and update the GM facilities and a noise-reducing fabric that covers skills they need for success in today’s economy. the engine of our Chevrolet Equinox crossover. In 2016, we introduced a new program at GM Building a Workplace of Choice called Take 2, a series of 12-week internships for When it comes to the sustainability of our workforce, experienced technical professionals – primarily we are investing in both our current and future women – eager to relaunch their careers after employees. We want people to know that if they being out of the workforce for two or more years. truly want to make the world a better place, they Participants receive technical training, professional can make a real difference here. development and personalized mentoring with GM leaders that prepares them to pursue opportunities From boardroom to dealer showroom, we are in engineering, IT, finance, customer care and other committed to building a dynamic and diverse team critical functions in GM’s global workforce. In the first that shares a passion for solving the world’s mobility year, we offered 85 percent of participants a full-time challenges. And we’re creating a culture, an energy position, and had a 96 percent acceptance rate. and an attitude that says anything is possible. Around the world, we are dedicated to empowering a diverse and inclusive workplace that values the contributions of all employees. We know that a diverse workforce promotes fresh, innovative thinking that translates into a competitive advantage Maven car-sharing expands to Chicago. for GM and winning products for our customers. Throughout the company, we offer collaborative workplaces and an enterprise-wide commitment to peoples’ life choices. Nearly 3,000 employees took advantage of our tuition assistance programs in 2016, and nearly 800 more participated in our well- established technical and professional education programs. We also believe that fair and equitable 6 2016 SUSTAINABILITY REPORT LEADERSHIP > CEO Message pay is an essential element of any successful Advancement of Collaborative Engineering Education business model, and we were proud in 2016 to (PACE) and a new organization we are very excited have signed the White House Equal Pay Pledge. to support, Girls Who Code (GWC). One way we measure engagement at GM is GWC is a U.S. non-profit committed to closing the through a global biennial “Workplace of Choice” technology gender gap. Research suggests that survey. Participation rates in our 2016 survey were programs designed specifically to spark and maintain at an all-time high, including 86 percent for salaried girls’ interest in STEM from middle school into the employees.