Natural Resources
At Adient, we recognize the importance of the Earth’s natural resources — such as water and forests — to the health of our shared planet. Preserving these resources helps ensure biodiversity, protect ecosystems, and mitigate climate change, all of which are vital to our business continuity. Our Deforestation Commitment outlines how we are working to conserve these precious resources in our operations globally.
In fiscal year 2025, we worked with our timber-based packaging supply chain to understand the status of sustainable certifications and identify opportunities to increase the percentage of sustainable-certified timber-based packaging materials. We also introduced our 5-year Water Strategy, updated our company Water Policy, and achieved a 6% year-over-year reduction in water withdrawals in fiscal year 2025.
We adhere to all relevant local, country, and regional laws and regulations and work to source raw materials and components more sustainably — and we encourage our suppliers to do the same. The Sustainability Steering Committee and Board of Directors review our natural-resources actions and progress quarterly.
Our Approach:
Biodiversity
In 2024, Adient conducted its first global biodiversity risk assessment in line with the Task Force for Nature Related Financial Disclosures (TNFD) as part of its readiness for the upcoming European Union Corporate Sustainability Reporting Directive (CSRD) and European Union Deforestation Regulation (EUDR) requirements. In fiscal year 2025, Adient began developing key priority actions for protecting biodiversity.
Our Approach: Atmosphere and Climate
Adient monitors its greenhouse gas emissions and air pollutants. We set scope 1, 2, and 3 reduction targets with the Science Based Targets initiative (SBTi) to help limit global warming to 1.5°C. Our roadmap, using 2019 as the base year, was submitted in 2021 and validated by SBTi in 2022.
Progress toward Adient’s Emission-reduction Targets
| Commitment | Status | Progress1 |
|---|---|---|
| Reduce scope 1 and 2 greenhouse gas emissions 75% by 20302 | In Progress | 42% reduction3 |
| Reduce scope 3 greenhouse gas emissions 35% by 20304 | In Progress | On track — focused on improving data accuracy by transitioning from a spend-based to a process-based approach in high-emission commodities |
| Convert 100% of our manufacturing sites to renewable electricity by 2035 | In Progress | 30% of electricity usage attributable to renewable sources |
2Using 2019 as the base year
3Within SBTi boundaries
4Using 2019 as the base year
Risk Assessment
In 2025, Adient advanced supply chain risk management by implementing the Everstream Supply Chain Mapping tool for high-risk suppliers, increasing transparency and identifying potential risks related to human rights and regulatory compliance. Our cross-functional Supplier Due Diligence Working Group continued to oversee supplier assessments and corrective actions to strengthen sustainability and compliance throughout our supply chain.
Transparency
In 2023, we completed a supply chain mapping exercise of leather, timber-based packaging, and soy and palm oil products, gaining meaningful insight into our tier 1 and tier 2 suppliers and sourcing regions. In fiscal year 2025, Adient launched its Global Supplier Compliance Program and fully deployed the EcoVadis Sustainability Survey tool to 1,550 key suppliers representing roughly 80% of supplier spending, further enhancing supply chain transparency.
Classification System
Adient continues to apply its supplier classification system, developed from our supply chain mapping, to forest commodity suppliers. This system ranks supplier risk as high, medium, or low, based on criteria including sourcing region, mitigation actions within the supply chain, willingness to share data, and possession of sustainable certifications. This risk-based approach supports responsible sourcing and supply chain sustainability.
FLAG Emissions
In 2023, we began calculating our Forestry, Land and Agricultural (FLAG) emissions to understand our carbon footprint related to forest-commodity procurement, in line with the Science Based Targets initiative (SBTi). The resulting FLAG emissions are below the SBTi threshold for mandatory target setting. We continue to monitor our FLAG Emissions annually.
Stakeholder Groups
Adient is committed to ethical practices, sustainability, and compliance across our supply chain. In fiscal year 2025, we expanded our global Center of Excellence for supplier compliance and risk management, enhanced supplier screening and sustainability assessments, and updated our Global Supplier Standards Manual to include new requirements for climate, human rights, and transparency.
International Sustainability & Carbon Certification (ISCC)
Adient continues to collaborate with our supply chain to source less carbon-intensive substances such as soy and palm oils for our foam cushion products, supporting ISCC certification. This effort increases traceability and helps reduce the carbon footprint of our molded foams by up to 20% compared to conventional equivalents.
Adient’s Fiscal Year 2025 Actions toward its Forest Commodity Commitments
| Commitment | Actions |
|---|---|
| Conduct supply chain mapping of Adient-controlled soy and palm products and determine the status of their sustainable certifications. | > 100% tier 1 response rate and sourcing regions identified > Incremental 75% tier 2+ response rate (as of 2023) > 100% of tier 1 suppliers can offer certified-sustainable product (as of 2023) |
| Work with our timber-based packaging supply chain to understand the status of sustainable certifications and identify opportunities to increase the percent of sustainable-certified timber-based packaging materials in fiscal year 2025. | > Engaged with 81% of our key4 packaging suppliers by spend in fiscal year 2025 > Increased the share of key suppliers providing sustainable-certified materials to Adient to 51% as of Sept. 30, 2025 (compared to 30% as of Sept. 30, 2024) > 74% of key suppliers were able to provide the country where their Tier 2 is located |
| Conduct supply chain mapping of Adient-controlled leather products by the end of fiscal year 2025. | > Engaged with 100% of key leather suppliers (directed and controlled) in the mapping exercise > 70% of sourcing regions identified |
| Identify key priority actions for protecting biodiversity in line with the Task Force for Nature Related Financial Disclosures (TNFD). | > Completed first biodiversity risk assessment > Developing key priority actions going forward |
4Adient excluded low-spend suppliers in its forest-commodity activities
We collaborate with various stakeholders, suppliers and advisors to comply with European Union Deforestation Regulation (EUDR) and the German Due Diligence Regulation via an internal supplier due diligence working group.
Our Approach:
Water Management
Adient believes that access to clean, safe drinking water is a fundamental human right. We conduct our business in a manner to minimize withdrawals and ensure water is managed in compliance with local regulations and best practices. We use water in our facilities for safe drinking-water, sanitation and hygiene (WASH) purposes and as a component in some of our production processes, recycling, and re-using water wherever reasonably possible.
In fiscal year 2025, Adient strengthened its commitment to water stewardship by revising its company-wide Water Policy and unveiling a comprehensive five-year Water Management Strategy. Developed through risk assessments, benchmarking, and stakeholder engagement, the strategy addresses water-related risks and supports operational resilience across Adient’s global footprint.
| Fiscal Year 2024 | Fiscal year 2025 | |
|---|---|---|
| Total water withdrawal | 1,258,962 m3 | 1,186,9335 m3 |
| Third-party water | 1,170,532 m3 | 1,077,192 m3 |
| Ground water withdrawal (on-site) | 88,430 m3 | 109,741 m3 |
| Waste water discharge | 1,085,000 m3 | 936,525 m3 |
| Total water consumption | 173,962 m3 | 250,408 m3 |
| Water withdrawals in high-water-stress regions | 367,748 m3 | 368,365 m3 |
| % of water withdrawals in countries with high and extremely high baseline water stress indicator | 29% | 31% |
| Total recycled/reused water | 8,426 m3 | 21,965 m3 |
| Rainwater | 902 m3 | 551 m3 |
| Water intensity6 | 85.2 m3 / $ million in sales | 81.2 m3 / $ million in sales |
6Intensity values calculated using the sum of net sales for all three regions before any corporate eliminations
Risk Assessment
Adient conducts periodic water security risk assessments to identify our sites that exist in regions of high water stress. Through our most recent assessment, we have identified 37 manufacturing and 10 non-manufacturing sites in areas of high water stress, in 12 countries across the three regions. Among these 47 sites, we have identified 12 sites with high physical risk quantity, quality, and regulatory and reputational risk where we focus our efforts and resources.
Scenario Analysis
Adient has completed water scenario analyses for 2020, 2030, and 2050 to assess potential risks and opportunities. We continue to monitor our water-related risks by engaging water security experts, tracking progress through key performance indicators (KPIs), and targeting reductions at high-consumption sites. Through our fiscal year 2025 water reduction actions, we achieved a 6% year-over-year decrease in total water withdrawals, building on past successes and strengthening our ongoing efforts to address water risks globally.
Wastewater
Adient continues to track and monitor wastewater discharges from all global sites, ensuring all water is treated or discharged within local regulatory parameters. During fiscal year 2025, we conducted third-party audits to verify compliance and focused on enhanced monitoring at sites in regions facing elevated water stress, further supporting our commitment to regulatory standards and responsible water stewardship.
Learn More
For more information about Adient’s actions to combat deforestation and preserve our natural resources, please visit adient.com/sustainability or email sustainability@adient.com.