Sustainability
POWERing a 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.
Our Vision, Mission and Sustainability Mission
Vision
To POWER a more sustainable future while providing value to our stakeholders.
Mission
Advancing global mobility through innovative technologies and sustainable solutions.
Sustainability Mission
To deliver POWER and build a safer, greener and sustainable future for our Associates, customers, communities and the environment.
2023 and Beyond Sustainability Priority Topics
It is critical to align with changing expectations of our internal and external stakeholders. In our most recent materiality assessment, we identified 15 material topics, including 7 priority topics, which will help drive our strategy, additional long-term commitments and sustainability-related initiatives. Below are the material and priority topics we will focus on in 2023 and beyond.
Environmental
POWERing a Greener Future
Protecting the environment and conserving natural resources are key priorities for AAM. We are committed to a more sustainable future through social responsibility, environmental stewardship and the reduction of our overall carbon footprint.
To meet this commitment, we have set ambitious goals, such as achieving net-zero emissions by 2040 and purchasing 100% renewable energy in the U.S. by 2025.
In 2022, AAM:
- Achieved SBTi validation of GHG emission goals
- Achieved an A- on the CDP Climate Change survey
- Achieved Silver Status on the EcoVadis Sustainability Assessment
SOCIAL
POWERing an Inclusive Future
Our people drive our success. They are our greatest resource – and our greatest responsibility. As we progress toward a more sustainable and equitable future, we must first ensure all Associates feel safe, welcomed, appreciated, respected in the workplace and have a sense of belonging.
We’re committed to attracting and retaining the sharpest, most creative minds in the industry. AAM offers a resource-rich environment that encourages, develops and empowers Associates to grow as professionals and individuals. We continue to implement new initiatives and expand our efforts to POWER the company, community and world we wish to see.
In 2022, AAM:
- Was named one of America’s Best Large Employers by Forbes
- Hired our first Executive of Diversity, Equity and Inclusion
- Improved on all Safety Performance metrics
Product
POWERing a Cleaner Future
We deliver POWER to our customers through unparalleled expertise in driveline and metal forming technologies. Our experience serves as the foundation for a new generation of products designed for a greener, more sustainable world.
AAM operates over 80 facilities in 18 countries and has invested more than $2 billion in research and development initiatives since our founding in 1994. Associates at our 14 global engineering development centers are empowered to think different as they invent the technologies of tomorrow.
In 2022, AAM:
- Received three Automotive News PACE program awards
- Launched 17 global product programs
- Received eight quality performance awards
Supply Chain
Powering a Collaborative Future
We strive to develop and maintain relationships with companies that share our vision, values and commitment to sustainability and diversity. AAM collaborates with Supplier Partners around the globe to deliver POWER to our customers, minimize our impact on the planet and reflect the communities in which we operate.
As we continue to advance our supply chain and procurement strategy, we are determining appropriate monitoring processes. We are also exploring additional elements such as implementing a Supplier Code of Conduct and integrating sustainability criteria into our sourcing decision process.
In 2022, AAM:
- Established a Supplier Sustainability Council
- Updated the Supplier Requirements Manual
- Increased our spend with diverse suppliers
Governance
POWERing a Responsible Future
Governance of sustainability at AAM begins with our Board of Directors and moves through clearly established ownership responsibilities at multiple levels in the organization, including: the Board of Directors, AAM’s Chairman and CEO, the Policy Committee, the Sustainability Program Lead, the Corporate Sustainability team and the cross-functional ESG Working Group.
AAM is committed to accountability and transparency in the measurement and reporting of all key business, financial and sustainability performance metrics.
In 2022, AAM:
- Advanced Board effectiveness and Director skills in promoting DEI and conscious inclusion
- Promoted a cybersmart culture through security awareness and training
- Expanded Sustainability Program governance
Click the image to read the 2022 AAM Sustainability Report
AAM Achieves Top Industry Validation for Emissions Targets
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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.
###
Media Contacts:
Christopher M. Son, AAM
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com
Story Type :
- Feature Story
- Media Release
Categories :
- Sustainability
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AAM Achieves Top Industry Validation for Emissions Targets
Title :
AAM Achieves Top Industry Validation for Emissions Targets
Video url :
Image caption :
Send email to investor list :
No
Shrink image to fit :
Yes
Send email to media list :
No
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.
###
Media Contacts:
Christopher M. Son, AAM
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com
Story Type :
- Feature Story
- Media Release
Categories :
- Sustainability
Related Fast Fact :
Related contacts :
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