Sustainability 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 75,000 employees strong in 204 wholly and majority-owned manufacturing or assembly facilities in 32 countries around the world. We produce 20 million seat systems per year and have partial-owned affiliates in China, Asia, Europe and North America.
Our Guiding Principles
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.
Our Strategic Priorities
Based on the results of a 2021 materiality assessment, we are focusing our ESG efforts on Climate Action; Sustainable Materials and Circular Economy; Human Rights; Diversity, Equity and Inclusion (DE&I); Health and Safety at Work; and Corporate Governance.
Adient’s leadership team has been fully engaged and committed to protecting Adient employees, minimizing disruption to customers, collaborating with suppliers, adapting quickly to unprecedented challenges, and supporting our communities as needed. Learn More
We recognize our activities can potentially impact the environment, including the way we source materials, manufacture products, consume energy, and generate air pollutants and waste. We are committed to operating our business in an environmentally responsible manner, minimizing environmental risks and impacts, reducing our CO2e footprint, monitoring and improving upon the use of global resources, and maintaining legal compliance in each country where we do business. 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 2021, Adient logged 728 energy-, emissions- and water-reduction projects at its locations, which:
• generated electrical savings of nearly 30,000 MWh
• prevented more than 5,000 tons of CO2e from entering the atmosphere
• achieved 24 ML in water savings in fiscal year 2021
Our Commitment to the Environment
In 2021, Adient submitted new greenhouse gas (GHG) emissions-reduction targets — to reduce Scope 1 and 2 GHG emissions 75% at our manufacturing plants by 2030 and to reduce Scope 3 GHG emissions 35% by 2030 — to SBTi. As a step toward reaching these targets, Adient’s goal is to be 100 percent reliant on renewable electricity by 2025.
We support a variety of market-based approaches to regulating carbon emissions that assure the integrity of the reductions and are efficient in their implementation. Our greatest opportunities for reducing our carbon footprint are within our supply chain network, and we will work with our suppliers and partners to achieve our greenhouse gas (GHG) reduction targets.
Energy Conservation and Renewable Energy
All our global manufacturing locations have established facility-specific energy management programs and metrics, and we are working to acquire an increasing percentage of our electricity from renewable resources such as wind and solar (supplied by the utility company) in fiscal year 2022.
In addition to our GHG emissions-reduction targets, we also track and report on air pollution data each year, including VOCs (volatile organic compounds). In the Americas, our foam plants have committed to an 8 percent VOC emissions-reduction target in fiscal year 2022. Our foam plant in Pulaski, Tennessee, U.S. cut its VOC emissions by 97 metric tons — a significant reduction — in fiscal year 2021 through process improvements.
Adient continues to focus on integrating sustainability into its seating products through its ES3 — Evolution of Seating Systems Sustainability — approach to product design. ES3 reduces design complexity and limits operational waste while using sustainable materials.
Conflict Minerals and Materials Management
We expect our suppliers to conduct conflict-free sourcing from Responsible Minerals Initiative (RMI)-certified smelters and include express requirements in our Supplier Manual. Our Conflict Minerals Policy, Conflict Minerals Report and more are available at www.adient.com/suppliers.
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. Adient is 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 and Toxicity
Through various programs and initiatives, our manufacturing plants operate with the consistent mindset to reduce the waste materials and chemicals used and generated in our processes. We ensure our ISO 14001 programs are driving these improvements. Globally, we logged more than 300 waste reduction projects in fiscal year 2021. We also began tracking our waste recovery rate and waste intensity as company sustainability key performance indicators (KPIs) in 2021.
People and Communities
We know the excellence of our company depends on creating and sustaining a work environment where employees are valued for who they are as individuals and for their unique perspective and contributions. We also know multinational corporations like Adient have a responsibility and ability to affect change in human rights.
As a participant in the United Nations (UN) Global Compact, Adient is 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.
Adient has approximately 75,000 employees worldwide who represent a wide variety of backgrounds. We are committed to their safety and well-being as well as to advancing diversity and career development through inclusive leadership and talent management processes.
Adient respects the rights of our employees to organize. In locations that are represented by a labor union, Adient will bargain in good faith with a goal of reaching a collective agreement that meets the needs of our employees and at the same time allows our business to grow and prosper.
We believe attracting, developing, motivating and retaining employees is key to our sustainable and profitable growth. Across the organization, our leaders partner with human resources to monitor our talent pipeline and identify career advancement opportunities.
We are committed to providing a workplace that is free from harassment, discrimination, or any other behavior that diminishes a person’s integrity and self-esteem. We will not tolerate physical or mental harassment or abuse and also expect our suppliers to treat their employees with dignity.
We believe it’s our responsibility to respect and uphold the rights of our people and any other individuals we are in contact with across the globe. We believe our commitment to human rights is evident in our Human Resources, Safety and Procurement policies and practices.
Health and Safety at Work
We are committed to protecting the safety and well-being of our colleagues, customers, suppliers and people using our premises. We have implemented and maintain a health and safety management system that is certified to the ISO 45001 Occupational Health and Safety standard. Globally, 100 percent of our facilities are internally audited and compliant, and 48 percent are also third-party audited and certified. We plan to be 100 percent certified by fiscal year 2023.
We strive to have a positive impact on the communities in which we operate. 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.
Governance and Compliance
Our foundational document, Adient’s 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 Chief Executive Officer, 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 Director of Sustainability. The ESG Steering Committee meets quarterly and reviews key sustainability initiatives, activities and disclosures.
Additionally, our 2021 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.
Adient’s Board, as a whole or through its committees, oversees an enterprisewide approach to risk management that is intended to achieve Adient’s long-term strategic and organizational objectives. A summary of the primary areas of risk oversight of the Board and its committees can be found in Adient’s 2022 Proxy Statement.
Bribery and Corruption
Adient does not tolerate any form of bribery or corruption with our business dealings. Adient’s stance against bribery and corruption is a key statement of principle in our Ethics Policy: We do not tolerate — and we actively oppose — corruption in our businesses.
As noted in our Ethics Policy, Adient is committed to complying with all laws — including laws regarding the international trade of goods, services and technology. Such laws include exports controls, sanctions, embargoes, import/export regulations, and supply chain security programs.
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. Adient’s Privacy Notice is available at www.adient.com/privacy.
Our cybersecurity program is designed to protect and preserve the confidentiality, integrity and continued availability of all information we own as well as that of our customers, suppliers, vendors, employees and anyone in our care. Our program adheres to applicable industry standards.
We work to promote a culture of safety across the organization where all employees are encouraged to identify potential safety defects. Annual product safety training and certification requirements are in place to continuously reinforce understanding of roles and expectations for all responsible employees.