General Motors is using incentives to encourage supply chain responsibility, instituting a new Green Supplier Award to be given to the GM supplier that best supports the companies' environmental initiatives, such as ISO14001 certification and the Suppliers Partnership for the Environment (SP); exhibits transparency in its environmental performance; and brings new technologies to GM that improve environmental performance of the company's facilities or products. 

"GM has taken great strides to improve the environmental impact of its products and operations and we will continue to do so," said Elizabeth A. Lowery, GM vice president, environment and energy. "Beyond our own operations, we feel a responsibility as the world's largest automaker to encourage the entire auto supply chain to do the same." 
 
Johnson Controls, Inc. is the first recipient of GM's Environmental Excellence Award. Johnson Controls is one of a small group of suppliers involved in an initiative with GM, the World Environment Center, and the Society of Automotive Engineers-China to help green China's auto supply chain. The pilot program, launched in 2005, is focused on helping suppliers develop and implement clean-production practices that help to reduce environmental impacts and also lower suppliers' operating costs. 
 
In the U.S., Johnson Controls led the development of an initiative to promote recycling of lead-acid batteries. Today, the batteries that JCI supplies to GM are made of 70 to 80 percent recycled lead and plastic. 
 
Johnson Controls has also displayed ingenuity in its manufacturing processes. In 2005, the company launched the production of door panels for GM's Chevrolet Impala using a method that eliminates the need for adhesives and additional wrapping operations. 
 
GM and Johnson Controls are both members of the Suppliers Partnership for the Environment program, a forum co-founded by GM, the U.S. Environmental Protection Agency and several auto suppliers, that is aimed at improving the environmental performance of the auto industry supply chain. 
 
The association allows members to share best practices that improve environmental impact while providing value throughout the entire auto supply chain. Through the partnership, member companies are able to continuously improve products and processes, increase energy efficiency, eliminate waste, identify cost-saving opportunities, and optimize resources and technologies.

Source GreenBiz.com