ESG at Adient
At Adient, we are committed to creating a sustainable future for our employees, customers and communities while improving the experience of a world in motion.
We have firmly integrated sustainability into the core of our company in order to evolve and become the foremost sustainable automotive seating supplier. We will continue to meet, collaborate with, and participate with organizations around the globe concerning our responsibility and commitment to sustainability.
For additional important information regarding risks and uncertainties related to the forward-looking statements expressed here and in the Sustainability Report, please see the “About this Report” section of the Sustainability Report.
We are 70,000+ employees strong in over 200 wholly and majority-owned manufacturing or assembly facilities in 30 countries around the world. We produce millions of seat systems every year and have partial-owned affiliates in China, Asia, Europe and North America.
Our ESG Strategy
We conducted a materiality assessment in 2021 and are using the results to develop and drive our ESG strategy. Our strategic priorities (above) remain aligned to this materiality assessment, and we continue to make progress toward our ESG goals.
What Guides Us
We deliver win-win solutions to our customers. We approach our work with a quality mindset, driving operational excellence. We respect and empower our people, always acting with integrity. We support the communities in which we work, including being environmentally conscious globally. We proactively manage costs, profitability and cash generation through our financial discipline.
Our Sustainability Vision
Our sustainability vision — “Together, we are committed to creating a sustainable future for our employees, customers, and communities” — concisely conveys our pledge to be a good steward of everyone for whom we are responsible.
Culture of Integrity
We believe our culture of integrity makes us a better employer, business partner and environmental steward, and we are committed to maintaining an environment where our employees are always empowered to do what’s right. Our Ethics Policy guides us, and our 24-hour Integrity Helpline allows individuals to submit concerns or ask questions anonymously.
Protecting the Environment
We recognize climate change is real and acknowledge it threatens air and water quality, harms biodiversity, and, if left unchecked, has the potential to drastically affect human life on Earth. We are committed to operating our business in an environmentally responsible manner, including the way we source materials and services, manufacture products, consume energy and natural resources, and monitor waste and air pollutants. We are committed to the Science Based Targets initiative (SBTi) to limit global warming to 1.5 degrees Celsius and are a proud supporter of the Carbon Disclosure Project (CDP).
In fiscal year 2022, we completed 1,174 continuous improvement projects at our locations globally that annually conserve a total of:
> 6,092 metric tons of CO2e
> 16 million liters of water
> 25 million kWh-equivalent of fuel
> 5,363 metric tons of waste
> 42 million kWh of electricity
We have reduced our global scope 1 and 2 absolute CO2e emissions 25% — and our scope 3 absolute CO2e emissions by 12% — as of Sept. 30, 2022 (using 2019 as our base year). SBTi validated our near-term targets — a 75% reduction in absolute scope 1 and 2 emissions at our manufacturing plants by 2030 and a 35% reduction in scope 3 emissions by 2030 — in 2022.
Supply Chain Emissions
We recognize the relevance and importance of our wider supply chain’s environmental risks and impacts and are working with our suppliers to achieve our scope 3 (value chain) absolute emissions-reduction target of 35% by 2030, using 2019 as our base year. Our new supplier due diligence tool helps us calculate supplier sustainability maturity.
Decarbonizing and Reducing Energy Consumption
We are committed to reducing our energy consumption and transitioning to renewable electricity sources. As of Sept. 30, 2022, 14% of our total electricity consumption globally is attributable to renewable sources, and in fiscal year 2022, we completed 340+ energy-saving projects that annually conserve a total of 42 million kWh of electricity.
We continue to explore and implement manufacturing methods to lower our emissions and reduce waste. At our North American foam plants, reducing our solvent-based mold-release usage by 5.2% in fiscal year 2022 (compared to fiscal year 2021) reduced our material usage by 69 tons and lowered our VOC (volatile organic compound) generation by 66 tons.
Sustainable Product Design
Through our Evolution of Seating Systems Sustainability (ES3) approach to product design, we identify materials and manufacturing methods that minimize our environmental impact through a more circular approach to product design, development and production. Our award-winning products and innovative processes keep us at the forefront of sustainable automotive seating.
Deforestation and Natural Resources
We are committed to standardizing best practices that help preserve our natural resources. Our Deforestation Policy, released in September 2022, defines our commitments, actions and targets, and our Water Policy outlines requirements and best practices for effective water resource management in our operations. We are also working with the World Wildlife Fund, Global Canopy and other organizations to further understand how we can reduce our potential impact on deforestation.
Waste Reduction and Handling
Keeping waste out of the landfill helps decrease our carbon footprint and limit our negative impact on the environment. We are working to reduce, reuse, recycle and renew materials whenever possible across all our operations. Globally, we logged more than 260 waste-reduction projects in fiscal year 2022 that kept a total of 5,363 metric tons of waste from entering the landfill.
Some chemicals used in the automotive industry may impact health and the environment. Handling these chemicals properly is vital to keeping workers and the environment safe. We use the IMDS (International Material Data System) to ensure we’re meeting our legal obligations for managing hazardous chemicals and other materials.
People and Communities
Our people are our top priority. That includes our employees, suppliers and customers — and the communities in which they live and work. We will continue to work to protect the human rights, health and safety of our people while fostering an inclusive culture that values diversity.
As a participant in the United Nations (UN) Global Compact, we are committed to incorporating the Compact’s core principles into our strategy, culture and operations, and to engaging in collaborative projects that advance the broader development goals of the United Nations — particularly the Sustainable Development Goals.
Additional information about our commitment to respecting and upholding human rights is available in our Human Rights Policy Statement.
Human rights are fundamental to society and imperative to the success of our business. We support the Ten Principles of the UN Global Compact on human rights, labor, environment and anti-corruption, and we are committed to making the UN Global Compact and these principles part of the strategy, culture and day-to-day operations of our company. Read more in our Human Rights Policy Statement.
Diversity, Equity and Inclusion
We’re committed to fostering a culture of inclusion that celebrates diversity and empowers our people. Because when we bring our authentic selves to work every day — with all our unique characteristics, experiences and perspectives — we all win. Read our DE&I Commitment Statement to learn more about our commitments and actions.
Supporting Diverse Suppliers
We recognize the importance of diversity — in both our own workforce and our supply base — in driving strong business performance. Since becoming Adient in October 2016, we have spent $7.5 billion with diverse-owned suppliers — that’s more than $1 billion each year. We continue to achieve our customers’ supplier diversity targets and collaborate on initiatives that drive opportunities for diverse-owned suppliers.
Our sustainability vision — “Together, we are committed to creating a sustainable future for our employees, customers, and communities” — concisely conveys our pledge to be a good steward for our stakeholders. Through our employees and the Adient Foundation, we have contributed to numerous organizations that support health and social services, education, culture and the arts, and civic activities.
We believe attracting, developing, motivating and retaining employees is key to our sustainable and profitable growth. Through programs like Adient Accelerate and our Leadership Talent Review, we monitor our talent pipeline and identify career advancement opportunities across the organization.
Employee Health, Safety and Well-being
We are committed to protecting the physical and mental well-being of our colleagues, customers, suppliers and anyone with whom we are in contact around the globe. By working together across regions to share best practices, procedures and information about accidents and injuries, we have achieved year-over-year decreases in both our global recordable rate as well as our global lost workdays.
Governance and Compliance
We are committed to operating our business ethically and in accordance with applicable laws and regulations. Our Ethics Policy sets the standard for how we operate and provides the ethical framework for our organization. To guide our ESG efforts, Adient has created an ESG Steering Committee, which is comprised of the President and CEO, Chief Financial Officer, Chief Legal and Human Resources Officer, Vice President of Global Sustainability, Vice President of Investor Relations, Executive Vice President EMEA, and the Executive Director of Sustainability. The ESG Steering Committee meets quarterly and reviews key sustainability initiatives, activities and disclosures. A summary of the primary areas of risk oversight of the Board and its committees can be found in Adient’s 2023 Proxy Statement.
Additionally, our 2022 Sustainability Report follows the Task Force on Climate-related Financial Disclosures (TCFD) international standard for ESG reporting as well as the Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) standards for impact reporting.
Ethics and Integrity
Our Ethics Policy is our foundational document, and we are focused on maintaining a robust speak-up culture where all our people are empowered to act with integrity. We encourage anyone who has ethics-related concerns or questions to report them via our 24-hour Integrity Helpline, and we enforce a strict no-retaliation policy for employees who report concerns in good faith.
Bribery and Corruption
We do not tolerate any form of bribery with our business dealings and actively oppose corruption within our business. Our stance against bribery and corruption is a key statement of principle in our Ethics Policy.
We are committed to complying with applicable laws — including laws regarding the international trade of goods, services and technology — as noted in our Ethics Policy. Such laws include exports controls, sanctions, embargoes, import/export regulations,
and supply chain security programs.
We have a responsibility to safeguard our employees’ data as well as other personal data, and we follow applicable data and privacy laws. We follow local data protection and privacy laws and continuously monitor changes in this area. Adient has an internal network of local privacy coordinators that support Adient’s Global Privacy office. Read more in our Data Privacy Notice.
We are focused on securing and preserving the confidentiality, integrity and continued availability of the information we own as well as the information of our customers, suppliers, employees and anyone else in our care. Our program adheres to applicable industry standards.
Our products often form an integral part of our customers’ total vehicle system safety strategies. We take this responsibility seriously and have robust processes in place to identify, address, mitigate and prevent product safety issues. We promote a culture of safety at Adient where our employees are empowered to identify potential safety issues with our products.
We expect our suppliers to conduct their businesses safely, sustainably and in compliance with applicable regulatory guidelines. Our Ethics Policy and Global Supplier Standards Manual outline the minimum set of expectations we have for our suppliers, including our expectation that they demonstrate their commitment to quality and creating a sustainable future for their employees, customers, communities and environment.
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