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OUR OPPORTUNITIES

→ P roviding safe and accessible transportation without any of the distractions or impairments of a human driver

→ D eploying upgradeable all-electric, self-driving shared vehicles in OUR CHALLENGES fleets, through Cruise, that can operate for much longer than → B uilding trust and understanding personal vehicles among customers for advanced automated driving systems → Integrating multiple mobility breakthroughs—such as autonomy, → D eveloping commercially viable sharing and electrification—into business models for shared a single vehicle, accelerating the mobility solutions acceptance and adoption of each

→ C reating new urban mobility solutions, such as last-mile delivery, and other transportation-related businesses

→ W orking toward regulation to address the advent of commercial self-driving technologies

IN THIS SECTION

Transforming Mobility 92 Driver Assistance Technology 97 Self-driving Vehicles 93 Urban Solutions 98 92 2020 SUSTAINABILITY REPORT

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Transforming Mobility

GM envisions a future where we can enjoy the benefits of vehicle use— freedom, convenience and comfort—while minimizing risks such as crashes, emissions and congestion.

Over the past decade, GM has built a strong leadership be part of the answer, potentially reducing the crashes position in vehicle electrification and connectivity. And that can bring traffic to a standstill and that cost along with Cruise, the self-driving company majority almost 1.25 million lives annually in the U.S. That’s owned by GM, we are building a similar position in why AVs are potentially the most significant change self-driving vehicles. A significant part of our vision that will affect modern mobility, bringing enormous is enabling self-driving transportation in city centers, societal benefits, the most visible of which may be which is why our close collaboration with Cruise in dramatic increases in road safety. San Francisco is so exciting. Cruise thinks about AV technology not just as a service, but as a platform. Ridesharing and delivery are uses of that platform. These technologies will help us achieve our vision of zero crashes, zero emissions and zero congestion—all at the same time.

Outside of cities, it is important to understand that crashes, emissions and congestion are linked in many ways. According to the Federal Highway Administration, traffic incidents—including vehicle crashes—cause about one-quarter of all congestion in the United States. Recurring peaks in demand—most notably, daily commute periods—account for about half of all congestion. Moreover, as a function of traffic volumes, congestion grows nonlinearly. This tells us that improvements in vehicle safety and strategies for smoothing travel demand peaks, even just at the margins, can help meaningfully reduce congestion, its costs to society and associated emissions reduction from vehicles spending less time on the road. AVs will 93 2020 SUSTAINABILITY REPORT

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Self-Driving Vehicles

Self-driving vehicles are on the brink of disrupting the automotive industry. Cruise, the self-driving company majority-owned by GM, is helping chart the course of transforming transportation in cities.

Cruise is the only company with access to the capital being made in close collaboration with key technology and engineering talent necessary to bring self-driving collaborators. In 2019, Honda announced an investment vehicles safely to scale. Unlike other companies that of approximately $2 billion over 12 years to help are retrofitting conventional vehicles with autonomous develop a purpose-built AV, as well as to explore global technology, or designing their own vehicles for the first opportunities for commercial deployment of the Cruise time, GM's relationship with Cruise brings expertise in self-driving vehicles. automotive design, engineering, manufacturing, safety testing and proven quality methods refined over more Similarly, in early 2021, Cruise and GM announced than a century. GM is and remains the first automaker a long-term strategic relationship with Microsoft to use mass-production auto assembly line methods for to accelerate the commercialization of self-driving self-driving vehicles, which occurs at our assembly plant vehicles. The companies will bring together their in Orion Township, Michigan. software and hardware engineering excellence, manufacturing know-how and partner ecosystem Every Cruise AV test vehicle is also an EV that is to transform transporation. derived from the Bolt EV. Introducing these technologies in tandem accomplishes multiple goals, To unlock the potential of cloud computing for self-driving including increasing acceptance of EVs and encouraging vehicles, Cruise will leverage Azure, Microsoft’s cloud and buildout of EV charging infrastructure. In addition, there edge computing platform, to commercialize its unique are benefits to integrating AV technology into an EV—as self-driving vehicle solutions at scale. Microsoft, as Cruise’s opposed to a conventional or hybrid vehicle—from an preferred cloud provider, will also tap into Cruise’s deep engineering perspective. industry expertise to enhance its customer-driven product innovation and serve transportation companies across the Today, Cruise is making rapid progress to deploy self- globe through continued investment in Azure. driving vehicles that offer a great user experience, operate with zero emissions, and, most importantly, are safe to ride in. The journey to commercialization is 94 2020 SUSTAINABILITY REPORT

Clearing a Testing Milestone Beyond the complex Thanks to a permit from the California Department environments to which of Motor Vehicles, and after more than five years of Cruise submits their rigorous vehicle testing over 2 million miles of driving, and self-driving vehicles daily, countless hours of hard work from thousands of dedicated engineers have created 2M+ machine learning-driven Cruise and GM engineers and support teams, in 2020, AV test miles driven simulations that allow the Cruise began operating self-driving vehicles on the streets by Cruise to date. of San Francisco without a driver behind the wheel. The AV software to “drive” permit made Cruise the first self-driving vehicle company in an infinite number of to operate a vehicle without a driver behind the wheel in a simulated environments, major U.S. city. gaining experience more quickly than could be Over the past five years, Cruise has conducted nearly possible on the roads. Cruise also used simulation to all testing in one of the most complex environments in develop the Sensor Placement Tool, which determines the world—downtown San Francisco. Here, test vehicles the optimal placement of sensors to create overlapping, regularly confront situations such as unprotected left 360-degree coverage around every Cruise vehicle. turns, construction zones, cyclists and pedestrians, and experience more than 40 times greater complexity than Our Purpose-Built AV they would find testing in simple suburban settings. In 2020, Cruise introduced the Cruise Origin, a purpose- built, all-electric and shared self-driving vehicle. The Cruise Origin represents several aspirations for the future of mobility: a vehicle that is shared, autonomous, electric and, above all, safe to operate.

The Cruise Origin will operate without an internal combustion engine, a gas tank—or a driver. In its place, the vehicle will have more space for passengers and will operate in ridesharing fleets. To ensure reliability, the vehicle has built-in redundancy to eliminate single 95 2020 ESG IMPACT2020 REPORT SUSTAINABILITY PAGEREPORT XX

Transforming Mobility

points of failure across sensing, computing, networking time unused—and ride-sharing currently represents only and power. With no backup human driver, Origin a small fraction of vehicle miles driven in the U.S. uses purpose-built sensors and computers to deliver exceptional performance. It will be equipped with This presents opportunities to use vehicles more software that Cruise AVs have been testing and refining efficiently: decreasing the number of cars on the road, for years on the streets of San Francisco. but also increasing utilization rates of those that remain by more people riding in them. Taking this another step, Origin is the result of a collaboration between Cruise, when passengers choose to ride together in shared GM and Honda. Cruise focused on the self-driving cars or shuttles, they increase efficiency and reduce technology itself, as well as the service’s customer- congestion even further. facing design. GM has been focused on Origin’s flexible all-electric platform, as well as manufacturing scale. And Our customers not only understand these benefits— Honda, a Cruise investor and engineering collaborator, is they are demanding them. The changes brought by the helping to come up with creative engineering solutions. COVID-19 pandemic notwithstanding, there is a new desire for transportation access that doesn’t necessarily include traditional ownership models. Although many of Shared Mobility Models those models will remain strong in large parts of the U.S. The concept of "shared" extends beyond the Cruise and around the world, people everywhere, and especially Origin and is, in fact, expected to be a hallmark of Cruise the growing population in urban areas, are eager for a AVs, a further reflection of the changing nature of different type of relationship with transportation. This transportation. The global population, particularly shift provides us with a tremendous opportunity to in cities, is growing rapidly. By 2030, the world is offer personalized, premium, on-demand solutions that projected to have 39 megacities with more than connect customers to the people, places and moments 10 billion inhabitants. At the same time, we recognize that matter to them. that most privately owned vehicles spend most of their 96 2020 ESG IMPACT2020 REPORT SUSTAINABILITY PAGEREPORT XX

Transforming Mobility

Reimagining our urban landscapes means healthy, creative dialogues across multiple stakeholder groups— starting with people and leveraging the expertise in governments, companies and nonprofits. Our commitment to developing the future of cities is solidified Our self-driving vehicles undergo by being a signatory to the Shared Mobility Principles the same rigorous safety and for Livable Cities, a framework developed by a working group of international nongovernmental organizations to durability testing as other GM guide urban stakeholders and decision-makers. We have production vehicles. also experimented with peer-to-peer car-sharing and deploying EVs in high-mileage, shared-used applications. In these ways, we are advancing a mobility model that is helping make cities more livable and sustainable.

GM: Advocating Self-Driving Vehicle Safety Policy Our self-driving vehicles undergo the same rigorous safety and durability testing as other GM production vehicles. Vehicle development fully addresses all 12 safety elements in the National Highway Traffic Safety Administration (NHTSA) voluntary guidance, Automated Driving Systems 2.0—A Vision for Safety. These are outlined in GM’s first Self-Driving Safety Report, describing how safety is integrated into the development, testing and deployment of the Cruise AV.

Across the country at the state and federal levels, regulators and legislators are actively considering how to help foster and shape the evolution of AVs. GM is committed to a transparent and active collaboration with policymakers in this process. In particular, we are focused on discussing our mobility offerings with city A Delivery Fleet for Good officials across the U.S. and around the world, given Among the ways Cruise responded to COVID-19 that urban settings are the environment in which many was by helping their neighbors in San Francisco, of our advanced technologies will provide the most including local food banks looking for ways to robust applications and value. scale their delivery and reach more households while people were sheltered in place. To support these crucial organizations, Cruise volunteered their all-electric, self-driving fleet to deliver meals across the city. Throughout the year, their test vehicles made over 100,000 contactless deliveries of groceries and meals to San Francisco’s most vulnerable and underserved populations. 97 2020 SUSTAINABILITY REPORT

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Driver Assistance Technology

For GM, the move toward advanced driver assistance systems begins with Super Cruise, the world’s first true hands-free driver assistance technology for enabled roads and available to drivers on more than 200,000 miles of roads in the United States and Canada.

The system allows drivers to remove their hands from the such as “looking for an opening” or “changing lanes” to steering wheel, provided the driver maintains attention keep the driver informed on the status of a lane change on the road ahead—a task supported by a driver attention or to let drivers know when a Lane Change on Demand is system. LiDAR map data, GPS and a network of camera and not possible. We made improvements to both our software radar sensors help keep the vehicle in its lane. and hardware. This included improving rear-facing sensors and advanced software algorithms so that the Initially introduced on the CT6, an enhanced system can confidently track vehicles approaching from version of Super Cruise is available on the 2021 Cadillac the rear. As a result of these improvements, as well as the CT5, CT4 and Escalade, and will launch on the GMC Sierra inclusion of richer map data, we are able to ensure that 1500 Denali in late model year 2022. Super Cruise will be Super Cruise will hold in its current lane and only change available on 22 vehicles by the end of 2023, including the when a sufficient gap exists. The enhanced version of 2022 Chevrolet Bolt EUV and the GMC HUMMER EV. Super Cruise is made possible by GM’s Vehicle Intelligence Platform, which provides the required electrical bandwidth An enhanced version of Super Cruise features new Lane and data processing power. Super Cruise is just one example Change on Demand functionality that allows the system of the increasingly capable driver-assist technologies to change lanes when requested by the driver and when available on our conventional vehicle portfolio. certain conditions are met. The system provides information

85% 7M 22 of current CT6 owners said they miles driven vehicle models equipped would prefer or only consider a using Super Cruise. with Super Cruise globally vehicle equipped with Super Cruise. by the end of 2023. 98 2020 SUSTAINABILITY REPORT

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Urban Solutions

The World Economic Forum estimates that demand for urban last-mile delivery, fueled by e-commerce, will grow by 78% by 2030, leading to a 36% increase in delivery vehicles in the world’s top 100 cities—further exacerbating urban congestion.

At the same time, this increase in demand is expected to helping to reduce errors, secure packages, reduce the cause delivery-related carbon emissions to rise by nearly strain on drivers and enable more efficient delivery. Made one-third. The pandemic has only accelerated demand, available in early 2021, EP1 pallets travel in the EV600— as e-commerce has become a lifeline to goods and an electric light commercial vehicle built for the delivery services that many people are no longer willing or able to of goods and services over long ranges. It will combine access in person. zero-emissions driving, powered by the Ultium Platform, with a range of advanced safety and convenience Logistics companies, which manage fleets of many features. Supporting these products will be a suite of fleet thousands of vehicles, are on the front lines of these management tools that enable owners to monitor battery challenges, rising to meet demand while addressing the life, vehicle location and more. associated increases in emissions and congestion. GM’s Global Innovation organization approached this situation One of BrightDrop’s first customers is FedEx Express, through the lens of our zero-zero-zero vision, imagining which has already conducted a pilot using the EP1. what it would take to transform delivery and logistics During the pilot, FedEx Express couriers handled 25% for an all-electric future. Our solution: BrightDrop, more packages per day than they could without EP1s, an ecosystem of electric first-to-last-mile products, and reported that the pallets were easy to maneuver and software and services to empower companies to move reduced physical strain. BrightDrop and FedEx Express goods more efficiently. BrightDrop is designed to help are continuing to pilot EP1 technology, and will begin businesses lower costs, maximize productivity, improve receiving EV600 vehicles later in 2021. employee safety and freight security, and operate more sustainably with products that work together Addressing Congestion Through Public Policy intelligently and with zero emissions. According to the Texas A&M Transportation Institute, The first products in the BrightDrop range include the total delays and costs associated with congestion BrightDrop EP1, an electric-propelled pallet that helps across the United States have grown in recent decades. reduce the time and physical effort required for couriers Studies focused on specific states or regions identify to get goods from the delivery van to the front door. The similar trends. For example, in Massachusetts, automobile pallets are designed for optimal loading into delivery commute times increased about 10% between 2008 and vehicles and can be tethered together for larger drops, 2017. In California, state data show that the number of 99 2020 ESG IMPACT2020 REPORT SUSTAINABILITY PAGEREPORT XX

Transforming Mobility

hours vehicles spent traveling below 35 miles per hour micromobility operators can be part of an all-of-the- on state highways more than doubled over the same time above strategy that complements driving, eases the period. This has cost the economy as much as $1 trillion introduction of new technologies and services, and annually in lost productivity due to traffic slowdowns of facilitates less congested travel across all modes. That workers and goods. is why GM has advocated for regulatory frameworks that support carsharing, e-bike and new urban delivery GM is optimistic about the ability of innovations ventures, and why we see value in investments in in connectivity—most notably vehicle-to-vehicle broader transit and transportation infrastructure. and vehicle-to-infrastructure communication—and autonomous vehicle technology to optimize traffic flows Some cities are also beginning to explore policies and reduce accidents, both potential contributors to that manage transportation demand, including easing congestion. As noted elsewhere in this report, congestion pricing—charging a flat or variable fee to GM is hard at work developing and commercializing the vehicles that drive in a specific area or zone. Evidence technology to enable these advances. At the same time, from early-adopter cities around the world suggests GM recognizes the potential contributions of policy-driven that congestion pricing can be effective in reducing approaches to meeting congestion challenges. Many traffic volumes and delays and increasing average cities and states are already exploring these policies, travel speeds. Other options, such as telecommuting finding that there could be a variety of ways to improve incentives, may prove effective and align with the mobility for their residents. For example, cities across the mass shift to remote work that has occurred during U.S. are supporting new mobility options to ease gridlock the COVID-19 pandemic. As part of a comprehensive on streets and highways. Shared-mobility platforms, approach that includes new technologies, demand such as carsharing and ridehailing; and micromobility management through pricing and incentives—when solutions like e-bikes, and thoughtfully designed last-mile strategically and thoughtfully implemented—could play urban delivery solutions, can complement legacy transit a valuable role in mitigating congestion in urban areas. systems to relieve streets and highways of vehicles and give people choices for travel that better fit their trip GM has a well-established track record of engagement types and needs. with innovative city and mobility initiatives, from the Smart Cities Challenge in Columbus, Ohio, to targeted Ultimately, transit services, intelligent curb carsharing partnerships in underserved neighborhoods management and well-developed bike lanes and in Detroit. As cities continue to explore ways to tackle sidewalks, as well as developing forward-looking congestion in their communities, GM looks forward to regulatory structures that support shared and building on this foundation through partnerships and constructive dialogue with stakeholders, pilot projects and other efforts that seek to leverage public policy to realize our vision of a future in which people can enjoy the freedom, convenience and comfort of vehicle use in cities free of congestion.

This sets the stage for deploying connected vehicle technology to improve safety and relieve congestion by one day allowing vehicles to communicate with one another and the infrastructure. Equally important, this has provided us with an understanding and appreciation that offering a vehicle with the latest technology is only meaningful when it is seamlessly integrated, as well as consistent and relevant to our customers.