2023 SUSTAINABILITY REPORT | OVERVIEW |
ENVIRONMENTAL
SOCIAL
PRODUCT
SUPPLY CHAIN
GOVERNANCE
APPENDIX
POWERING A SUSTAINABLE FUTURE
2023 SUSTAINABILITY REPORT
1
2023 SUSTAINABILITY REPORT | OVERVIEW |
ENVIRONMENTAL
SOCIAL
PRODUCT
SUPPLY CHAIN
GOVERNANCE
APPENDIX
TABLE OF CONTENTS
3 Company Overview and Highlights | 51 Product | 82 Appendix | |||
3 | AAM Overview | 52 | Introduction | 83 | About This Report |
6 | Chairman and CEO Letter | 52 | Management Structure | 84 | Commitments |
7 | Sustainability Strategy | 53 | Electrification | 85 | Forward-Looking Statements |
8 | Stakeholder Engagement | 56 | Innovation | 86 | Supplemental Information - Environmental |
9 Environmental | 57 | Sustainable Product Development | 88 | Supplemental Information - Social | |
59 | Quality and Safety | 90 | UN SDG Index | ||
10 | Introduction | 59 | Management Structure | 91 | GRI Standards Index |
10 | Management Structure | 59 | Q4 Quality Operating System | 100 | SASB Standards Index |
11 | E4 Environmental Operating System | 61 | Awards | 101 | TCFD Standards Index |
13 Emissions
14 | Energy | 62 Supply Chain | |
16 | Water | 63 | Introduction |
17 | Waste | 63 | Management Structure |
18 Social | 64 | Sourcing and Monitoring | |
67 | Supplier Engagement and Diversity | ||
19 | Introduction | 70 | Transportation and Distribution |
19 Health and Safety
19 | Management Structure | 71 Governance | |
20 | S4 Safety Operating System | 72 | Introduction |
21 | Safety Metrics | 72 | Management Structure |
22 | Respect for Human Rights | 74 | Sustainability Governance |
24 | Mutual Respect | 75 | Risk Management |
25 | Organizational Culture | 76 | Cybersecurity and Data Protection |
25 | Management Structure | 77 | Ethics and Compliance |
26 | Talent Attraction and Retention | 81 | Industry Associations |
- Benefits and Compensation
- Wellbeing
- Career and Development
- Community Engagement
- DEI
2
2023 SUSTAINABILITY REPORT | OVERVIEW |
ENVIRONMENTAL
SOCIAL
PRODUCT
SUPPLY CHAIN
GOVERNANCE
APPENDIX
For nearly 30 years, our customers have relied on AAM to design, engineer, validate and manufacture the driveline and metal forming technologies that POWER their vehicles.
We are driven by a disciplined approach and a longstanding commitment to quality and operational excellence. We continue to build on our technology leadership by evolving our processes and products to meet the needs of our customers - and our world.
AAM's global presence includes over 80 locations across four continents (North America, South America, Asia and Europe). AAM is a unique global resource that brings higher-performing,next-generation driveline and metal forming products and technologies to markets around the world, working closely and collaboratively with customers to efficiently develop cost-effective solutions to improve vehicle performance. Our approach allows us to provide engineering and manufacturing services to our customers 24 hours a day. With our broadening supplier base and expanding capabilities, AAM is rapidly making our quality components and systems available to customers all over the world.
DRIVELINE
The AAM Driveline business unit is a global leader in rear-wheel drive (RWD), all-wheel drive (AWD) and four-wheel drive (4WD) systems for internal combustion, hybrid electric and full electric vehicles. Our product portfolio optimizes mass and increases efficiency without sacrificing performance.
METAL FORMING
AAM provides engine, transmission, driveline and a variety of other components for electric vehicles, light vehicles, commercial vehicles, and off-highway vehicles, as well as products for a number of industrial markets. With our global reach and resources, we invest in cutting-edge forging, machining, high pressure die casting and powder metal process technologies centered around manufacturing lightweight, highly precise and power-dense products.
3
2023 SUSTAINABILITY REPORT
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.
OVERVIEW | ENVIRONMENTAL | SOCIAL | PRODUCT | SUPPLY CHAIN | GOVERNANCE | APPENDIX |
OVER | ||
20,000* | 18 | $6.1B |
ASSOCIATES | COUNTRIES | 2023 SALES |
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 more than 80 facilities in 18 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. To learn more, visit aam.com.
*Includes full-time and part-time Associates, along with co-ops, contractors, etc.
4
2023 SUSTAINABILITY REPORT | OVERVIEW |
ENVIRONMENTAL
SOCIAL
PRODUCT
SUPPLY CHAIN
GOVERNANCE
APPENDIX
2023 HIGHLIGHTS
Achieved ISO 50001 certification | Introduced a new Cybersecurity | Recognized as a 2023 Automotive |
at all manufacturing facilities | Awareness program, #AAMSecure | News PACEpilot program finalist |
Received 21 quality | Named Best Employers for | Exceeded our 2023 U.S. renewable |
performance awards | Diversity by Forbes | and carbon-free energy goal |
Achieved 22,000+ consolidated days | Launched 14 major global | Increased our Supplier Diversity |
without a recordable safety incident | product programs | spend year-over-year by 12% |
5 |
2023 SUSTAINABILITY REPORT
OVERVIEW | ENVIRONMENTAL | SOCIAL | PRODUCT | SUPPLY CHAIN | GOVERNANCE | APPENDIX |
CHAIRMAN & CEO MESSAGE
AAM is driven by a culture of quality, operational excellence and technology leadership. In line with our vision, we are committed to POWERing a more sustainable future that is safer, greener and more inclusive for our Associates, customers, communities and stakeholders.
AT A GLANCE
While 2023 was a challenging year, we demonstrated resilience, achieved many successes and made progress in our business, community and sustainability (environmental, social and governance, or ESG) objectives.
Our continued electrification leadership was recognized by being named a PACEpilot finalist for our innovative electric drive technology. AAM also earned prestigious awards such as a Dorian Award for bottom line improvement and a 2023 General Motors Overdrive Award.
During 2023, we secured a new contract to supply e-Beam axles with our integrated 3-in-1e-Drive technology for a future electric vehicle program. In addition, we announced a $10 million (USD) investment in the Enertech Global Strategic Mobility Fund to support mobility and enhance our products and operations.
Focusing on our energy and emissions commitments, we exceeded our 2023 renewable and carbon-free energy goal in the U.S. We also strengthened our biodiversity efforts by becoming a member of the Wildlife Habitat Council to support sustainable ecosystems and the communities that surround them.
In 2023, we enhanced our Human Rights policy, showing our ongoing commitment to defending the dignity of our Associates, communities, and supply chain throughout our global operations. AAM continued to support the communities where we live and work with approximately 6,000 volunteer hours and over $1 million (USD) in monetary donations globally.
ADDITIONAL HIGHLIGHTS INCLUDE:
- Received 21 quality-related awards from our customers and other organizations.
- Successfully completed 14 major global product and program launches.
- Named one of America's Best Employers for Diversity by Forbes.
- Increased our Supplier Diversity spend by 12% year-over-year.
- Introduced a new Cybersecurity Awareness program.
At AAM, we remain committed to listening, learning and taking action that will move our company, communities and the environment forward, together. As you read this report, you will see the significant progress we have made.
I'm proud of what we've done across our business and around the globe. You can expect that at AAM, we will work to achieve profitable growth, and we will do it in a sustainable way.
As always, thank you for your support as we work toward a safer, brighter and more responsible future!
Sincerely,
David C. Dauch
Chairman of the Board and CEO
6
2023 SUSTAINABILITY REPORT | OVERVIEW |
ENVIRONMENTAL
SOCIAL
PRODUCT
SUPPLY CHAIN
GOVERNANCE
APPENDIX
CORPORATE GOVERNANCE AND
SUSTAINABILITY OVERSIGHT
ENERGY AND EMISSIONS
SUPPLY CHAIN ENGAGEMENT
AND RESILIENCY
ETHICS AND COMPLIANCE
PRODUCT SAFETY AND QUALITY
INNOVATIVE TECHNOLOGY
AND ELECTRIFICATION
COMMUNITY ENGAGEMENT
AAM'S MATERIAL TOPICS
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 these 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 Materiality Assessment
completed in 2022. These material topics are connected to the areas of
Environmental, Social, Product, Supply Chain and Governance.
WATER AND
WASTEWATER MANAGEMENT
WASTE AND HAZARDOUS
MATERIALS MANAGEMENT
SUSTAINABLE PRODUCT DEVELOPMENT
CLIMATE-RISK MANAGEMENT
ASSOCIATE HEALTH,
SAFETY AND WELLBEING
TALENT ATTRACTION AND RETENTION
HUMAN RIGHTS | DIVERSITY, EQUITY AND INCLUSION |
7
2023 SUSTAINABILITY REPORT | OVERVIEW |
ENVIRONMENTAL
SOCIAL
PRODUCT
SUPPLY CHAIN
GOVERNANCE
APPENDIX
STAKEHOLDER ENGAGEMENT
Our material topics are monitored throughout the year to understand emerging issues and stakeholder expectations. Our monitoring approach includes connecting with our key stakeholders through a variety of engagements to discuss the topics and gather their feedback.
Our stakeholders are individuals, groups or organizations who influence or are influenced by AAM's decisions and the implications of those decisions. Below are examples of our key stakeholders and how we engage with them.
ASSOCIATES | CUSTOMERS |
• Global Associate Survey | • Technology and Product Expos |
• Monthly Lunch with Leaders | • Customer/Automaker Supplier Councils |
• Global POWERhour Townhalls | SHAREHOLDERS |
POTENTIAL ASSOCIATES / RECRUITS | • Annual Shareholder Outreach Program |
• University Recruiting Events | • Automotive-Focused Conferences |
• Early Career Development Programs | • Active Investor Relations Programs |
• Associate Resource Group Special Events | INDUSTRY ASSOCIATIONS |
SUPPLIERS | • Various Industry Conferences |
• Supplier Sustainability Council | • Regional/Country-Level Organization Members |
• Annual Supplier Day | • Committee Participation |
• Supplier Executive Champion Program |
COMMUNITY
- Associate Volunteer Activities
- Local Facility-Sponsored Events
8
2023 SUSTAINABILITY REPORT | OVERVIEW |
ENVIRONMENTAL
SOCIAL
PRODUCT
SUPPLY CHAIN
GOVERNANCE
APPENDIX
ENVIRONMENTAL
In 2023, AAM…
- Exceeded our 2023 U.S. renewable energy goal
- Established a biodiversity partnership with the Wildlife Habitat Council
- Achieved ISO 50001 certification at all our manufacturing facilities
9
ENVIRONMENTAL
2023 SUSTAINABILITY REPORT
AAM understands its responsibility to protect the environment and conserve natural resources in the places we do business. Emissions and energy reductions, water stewardship, and proper waste management are issues vital to the success of our business. AAM has set ambitious greenhouse gas emissions targets, validated by the Science Based Target initiative (SBTi), demonstrating our commitment to do our part to address climate change. In our 2022 Sustainability Report, we noted our expectation to establish new baselines in 2023 for emissions, energy, water, waste and renewable energy. This was due to the change in our business as a result of our acquisition of Tekfor on June 1, 2022, and including our non-manufacturing locations in our reporting. As a result of an analysis performed in 2023, we anticipate continuing to meet our previously disclosed environmental targets.
As such, new baselines were not established.
AAM utilizes our Climate Scenario Analysis to understand our impact and shape our priorities. This analysis identified potential risks, opportunities, and
OVERVIEW | ENVIRONMENTAL | SOCIAL | PRODUCT |
MANAGEMENT
STRUCTURE AND
COMPLIANCE
SUPPLY CHAIN | GOVERNANCE | APPENDIX |
mitigation actions, both physical and reputational, under different scenarios for the future. AAM used this information to support the revision of policies, especially related to projects for plant improvements. Another issue of increasing importance across industries and around the world is biodiversity. It is both a local and global concern in that industries can affect areas near their operations and biodiversity impacts can be felt throughout the world. As AAM continues its sustainability efforts, we have joined the Wildlife Habitat Council, whose mission is to recognize, inspire, engage and support businesses to achieve wins for nature.
AAM's Facilities and Environmental, Health and Safety (EHS) organization is managed using a global and local approach to ensure company policies and commitments are supported, while complying with requirements that may vary by market. The Vice President of Facilities and EHS reports directly to the President and Chief Operating Officer, allowing for direct communication and engagement with the teams for continuous feedback.
Reporting to the global organization, regional managers are responsible for making sure all AAM environmental programs are properly integrated and aligned with global policies. AAM management reviews EHS performance on a quarterly basis, and ensures corrective actions and adjustment strategies are put in place through plant-level operations reviews. At each facility, a designated EHS representative is responsible for tracking and maintaining environmental compliance.
Additionally, an environmental sustainability champion and established green team implement the E4 operating system and are responsible for the facility to achieve full compliance with the system. Within each green team is a designated subject matter expert for each of the primary environmental metrics: energy, water, and waste.
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
AAM - American Axle & Manufacturing Holdings Inc. published this content on 10 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 14:37:06 UTC.