Supplier Sustainability

POWERING A SUSTAINABLE FUTURE

AAM is committed to aligning with best-in-class suppliers around the globe for value-added ideas, materials and products to help us meet and exceed customer expectations.

As we work to build a better future, we strive to create and maintain relationships with companies that share our vision, values and commitment to sustainability and diversity. We are committed to ensuring that our supply chain is doing all that it can to power us all towards a safer, greener and more inclusive future.

By incorporating requirements and expectations into our procurement process and setting expectations for our suppliers, sustainability and diversity are cascaded through our entire supply chain. Through collaboration and education, we are creating a supply chain that will help AAM deliver power to our customers, minimize our impact on the planet and reflect the diversity of the communities in which we operate.

At AAM, we continuously work to identify and develop supplier partner relationships with those who share our ESG vision and commitment. Additionally, we drive AAM’s values and objectives through our extended supply chain and establish performance measurement systems to validate achievement of our mutual goals.

 

 

Expectations

AAM’s relationship with suppliers is built around education, compliance and continuous improvement. It is our goal to ensure that all suppliers understand our expectations and have access to the tools and resources they need to remain compliant with our requirements.

Education

AAM requires all suppliers to understand the fundamentals of sustainability and compliance. We have partnered with the Automotive Industry Action Group (AIAG) to help suppliers meet our requirements.

Using AIAG’s Automotive Guiding Principles to Enhance Sustainability Performance in the Supply Chain, we have created a home page for our suppliers to access AIAG’s e-learning and knowledge assessment. AAM also requires all our direct material suppliers to take the Supply Chain Sustainability e-learning course (or equivalent training) and successfully complete the knowledge assessment.

Click here to access the training.

 

 

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Resources

The Guiding Principles are based on fundamental principles of social, environmental and governance responsibility that are consistent with applicable laws and international standards, which may include the UN Guiding Principles on Business and Human Rights, ILO Conventions, OECD Guidelines for Multinational Enterprises, the Rio Declaration on Environment and Development, as well as the Paris Agreement.

The Guiding Principles define common expectations of the signatories for their suppliers. To fulfill the Guiding Principles, automotive suppliers should implement a management system/s – defined as a combination of policies, processes, functions, tools and internal controls – that help an organization to control its operations, reach objectives and ensure continuous improvement. The recommendations concerning the practical application of the Guiding Principles are outlined in the Practical Guidance.

Automotive Industry Guiding Principles Document: This reference document for suppliers aims to address the latest trends and industry expectations on supply chain sustainability.
Automotive Sustainability Practical Guidance Document: This reference document guides suppliers through the practicalities and legalities of meeting these industry expectations.
AIAG Corporate Social Responsibility: ESG - Environment, Social & Governance 

 

 

 

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Supplier Sustainability Communications

In April 2022, AAM announced our new targets for greenhouse gas emissions, energy, water and waste. We also have submitted our greenhouse gas emission goals for accreditation to the Science Based Targets Initiative (SBTi) and look forward to implementing actions that will reduce our overall carbon footprint.

In order to meet our goals, we need full cooperation and collaboration with AAM’s supplier partners and their sub-suppliers. To meet this challenge, we initiated a supplier partner engagement program.

Click here to learn more about the supplier partner engagement program.

 

 

 

Looking to learn more about AAM's Supply Chain Sustainability goals and initiatives? 

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Click the image to review our Sustainability section.