Sustainability

POWERing a More Sustainable Future

AAM was founded on a set of Cultural Values and Strategic Principles that defines who we are to drive performance and build value.

These Values and Principles are core to our vision of POWERing a more sustainable future that is safer, greener and more inclusive for Associates, customers, communities and stakeholders.

 

AAM Vision

To POWER a more sustainable future while providing value to our stakeholders.

AAM Mission

Advancing global mobility through innovative technologies and sustainable solutions.

AAM Sustainability Mission

To deliver POWER and build a safer, greener and sustainable future for our Associates, customers, communities and the environment.

2024 AAM Sustainability Report

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Click the image to read the 2024 AAM Sustainability Report.

Sustainability Strategy

AAM is focused on driving continuous improvement in the sustainability areas most important to our company, with input from our internal and external stakeholders.

As a part of our ongoing processes, we actively review and update our goals and progress in the below key areas, ensuring they reflect our current business profile, industry norms and stakeholder expectations.

Our Policy Committee, which is led by the CEO, reviewed and approved 15 material topics identified in AAM's Materials Assessment completed in 2022. These material topics are connected to the areas of Environmental, Social, Product, Supply Chain and Governance.

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Browse the 2024 Report by Chapter

 

 

Science-Based Targets

AAM commits to reach net-zero GHG emissions across the value chain by 2040 from a 2020 base year. To support this goal, AAM commits to:

  • Reduce absolute scope 1 and 2 GHG emissions 45% by 2030 from a 2020 base year
  • Reduce absolute scope 3 GHG 25% within the same timeframe
  • Reduce absolute scope 1 and 2 GHG emissions 90% by 2040 from a 2020 base year
  • Reduce absolute scope 3 GHG emissions 90% within the same timeframe

In addition, AAM commits to 66.7% of its suppliers (by emissions) will have science-based targets by 2027. AAM achieved validation of these targets by the climate-action organization SBTi, meaning our targets are in line with goals set by the international community to limit global temperature rise to 1.5°C.

 

 

Policies and Reports

Policies

File Name

Size

Anti-Corruption Policy

137.98 KB

Conflict Minerals Policy Statement

147.89 KB

Conflict of Interest Policy

186.17 KB

Environmental Policy

100.25 KB

Human Rights Policy

1.7 MB

Safety Policy

106.56 KB

CDP Reports

File Name

Size

2024 CDP Response

1.16 MB

2023 CDP Climate Change Response

550.87 KB

2023 CDP Water Response

386.52 KB

2022 CDP Climate Change Response

740.83 KB

2022 CDP Water Security Response

528.5 KB
 

Previous AAM Sustainability Reports

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ESG 2023 Cover
2022 cover
ESG cover
2020 esg report cover
2019 esg report cover
 

Latest Sustainability News

AAM Achieves Top Industry Validation for Emissions Targets

Nov 30, 2022, 12:00 PM
Title : AAM Achieves Top Industry Validation for Emissions Targets
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DETROIT, Nov. 30, 2022 -- American Axle & Manufacturing (AAM), (NYSE: AXLE) continues its drive to sustainability leadership, achieving validation of its net-zero emissions targets by the climate-action organization Science Based Targets initiative. SBTi is a global initiative leading the way to a zero-carbon economy by driving the establishment of ambitious, science-based emissions-reduction targets in various industries. AAM has committed to reach net-zero greenhouse gas emissions across its value chain by 2040 from 2020. As such, AAM is among the first automotive Tier 1 suppliers to have its net-zero targets validated by SBTi.

“AAM is focused on driving continuous improvement in the sustainability areas most important to our company, our stakeholders and the communities in which we work and live,” said Michael K. Simonte, AAM President. “Receiving SBT validation of our emissions targets – currently the most ambitious designation available through the SBTi process – ensures AAM is on the right path to net-zero emissions.” 

The SBTi ensures that companies are pursuing near- and long-term actions to reduce emissions at a pace that is consistent with keeping global warming below 1.5°C.

AAM has committed to three specific near-term targets that have been validated by SBTi:

  • Reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions 45 percent by 2030 from a 2020 baseline;
  • Reduce absolute Scope 3 GHG emissions from purchased goods and services, capital goods, fuel and energy related activities, upstream transportation and distribution, waste generated in operations, business travel, employee commuting, downstream transportation and distribution, end-of-life treatment of sold products and investments 25 percent within the same timeframe;
  • Require that 66.7 percent of its suppliers by emissions covering purchased goods and services will have science-based targets by 2027.

The company has also committed to two long-term targets, also validated by SBTi:

  • Reduce absolute Scope 1 and 2 GHG emissions 90 percent by 2040 from 2020.
  • Reduce absolute Scope 3 GHG emissions 90 percent within the same timeframe.

 

Science Based Targets

The Science Based Targets initiative helps companies in various sectors set science-based targets and boost their competitive advantage in the transition to the low-carbon economy. SBTi shows companies and financial institutions how much and how quickly they need to reduce their greenhouse gas emissions to prevent the worst effects of climate change. Together with the annual disclosure of GHG emissions and progress against these targets, SBTi helps companies ensure maximum transparency and accountability on their journey to net-zero. SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature.

“Congratulations on your approved science-based targets,” the SBTi validation report stated. “The Intergovernmental Panel on Climate Change special report on 1.5°C highlighted the necessity to reach net-zero emissions by mid-century. (AAM’s) SBTs are key elements in setting out on this net-zero decarbonization trajectory while maximizing transparency and accountability throughout.”

SBTi reports that while it is still possible to limit global temperature rise to 1.5°C by the end of the century, our climate is dangerously close to that threshold. Therefore, it is very important to halve global emissions before 2030 and achieve net-zero by 2050. AAM encourages all of its stakeholders to follow its lead and also commit to science-based 1.5°C and net zero targets.

About AAM

As a leading global Tier 1 Automotive and Mobility Supplier, AAM (NYSE: AXL) designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in Detroit with nearly 80 facilities in 17 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. To learn more, visit aam.com.

About Science Based Targets

Science Based Targets drives ambitious climate action in the private sector by enabling organizations to set science-based emissions reduction targets. To learn more, visit SBT.

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Media Contacts:

Christopher M. Son, AAM
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com

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