Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Emissions per unit production (EQU) improved 2.21% in fiscal year 2018 compared to fiscal year 2017.
• 204 of 220 wholly-owned Adient production facilities were ISO 14001 certified.
• 24 energy efficiency improvement projects implemented.

Social Achievements

• 99% of salaried global workforce satisfactorily completed annual ethics certification.
• 64% of locations certified to OHSAS 18001 or ISO 45001 safety standard.
• Active Business Resource Groups: Women’s Resource Network (WRN) and African American Business Resource Group (AABRG).

Governance Achievements

• Implementation of an Ethics Policy, Anti-Bribery and Anti-Corruption Standard, and compliance program with training.
• 24-hour Integrity Helpline available in 28 languages for reporting ethical violations.
• Compliance with SEC disclosure rules regarding conflict minerals.

Climate Goals & Targets

Environmental Challenges

• Global climate change impacts on business development and position.
• Increased turnover due to organizational and reporting changes.
• Potential supply chain risks related to forced labor and corruption.

Mitigation Strategies

• AMS implementation for environmental responsibility and continuous improvement.
• Global supplier standards requiring environmental and social responsibility.
• Training for global purchasing employees and senior management on forced labor red flags.
• Due diligence on high-risk vendors and suppliers.

Supply Chain Management

Responsible Procurement

• Global supplier standards including requirements on environmental matters, diversity, ethics, labor and human rights, and health and safety.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Advanced lightweight materials that integrate technology and help minimize the lifetime environmental impact of our customers’ products.

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• People and Communities
• Governance and Compliance

Environmental Achievements

• Reduced VOC emissions by 14% (102,498 kg) across five North American foam manufacturing plants compared to the previous year.
• Adient plant in Strasbourg, France uses heat captured from air-emission-reduction equipment to provide heat for production-line processes.
• Eight plants globally use solar panels to produce electricity.
• Zero-to-landfill project completed at Pouso Alegre plant in Brazil.
• Valladolid, Spain plant uses biomass pellets for heating water boilers, resulting in annual energy savings of 540 MWh.

Social Achievements

• Year-over-year decrease in global injury rate.
• Adient Georgetown plant received the Governor’s Safety and Health Award in 2020.
• Lerma, Mexico plant produced 10,000 face covers per day at peak during COVID-19 pandemic.
• Juarez, Mexico plant produced over 3,000 face covers per day during COVID-19 pandemic.
• Employees planted over 50 trees at Aguascalientes, Mexico plant.

Governance Achievements

• 99% of global workforce satisfactorily completed annual ethics certification.
• CEO signed CEO Action for Diversity and Inclusion pledge.
• Thorough due diligence of high-risk vendors to prevent bribery and corruption.

Climate Goals & Targets

Environmental Challenges

• Data collection not centralized for energy and water.
• CI Projects database improvements needed.
• No formalized energy use reduction target.
• No tracking of renewable energy metrics.
• Water risk assessment not conducted.

Mitigation Strategies

• Investment and launch of a centralized global energy/water management software.
• Projects database improvements including mandatory sustainability calculations.
• Energy use target of 1% reduction in energy intensity for 2021.
• Develop renewable versus non-renewable energy source metrics.
• Complete a global water sources risk assessment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global supplier standards include requirements regarding environmental responsibility, diversity and inclusion, ethics and integrity, labor and human rights, and health and safety.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Improving energy efficiency in manufacturing operations and impact of finished products during use phase.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight materials improving fuel efficiency and reducing emissions.

Awards & Recognition

• Fiat Chrysler Automobiles “Diversity Supplier of the Year” (2020)
• General Motors Supplier IMPACT “GOLD” award (2018, 2019)
• Great Lakes Women’s Business Council Excellence in Supplier Diversity Award (2017, 2018, 2019)
• “America’s Top Corporations for Women’s Business Enterprises” by WBENC (2017, 2018, 2019)
• Toyota “Superior” Supplier Diversity Award (2018)
• “WE 100 Corporations of the Year”; WE USA (2017)
• “Corporate 101: Most Admired Corporations in Supplier Diversity” by MBN USA (2017)
• Toyota “Excellence” Supplier Diversity Award (2017)

Environmental Metrics

ESG Focus Areas

• Climate Action
• Sustainable Materials and Circular Economy
• Human Rights
• Health and Safety at Work
• Diversity, Equity and Inclusion
• Corporate Governance

Environmental Achievements

• Energy consumption reduction of ~30,000 MWh in FY 2021
• CO2e emissions reduction of roughly 5,300 metric tons in FY 2021
• Water use reduction of 24 Megaliters in FY 2021
• Waste reduction of ~3,000 metric tons in FY 2021
• Materials reduction of nearly 1,200 metric tons in FY 2021
• 100% of manufacturing facilities are ISO 14001-certified or compliant

Social Achievements

• Launched a Mental Health Toolkit for APAC employees
• Organized COVID-19 vaccination drives in Mexico, India, Thailand, Malaysia, and Indonesia
• Donated medical equipment and supplies to healthcare centers in India
• Formed DE&I Councils in three business regions
• Launched two new Business Resource Groups (BRGs)

Governance Achievements

• Implemented a robust compliance program
• Maintained a 24-hour Integrity Helpline
• Achieved 99% Ethics Policy Certification compliance globally
• Aligned Sustainability Report to TCFD recommendations

Climate Goals & Targets

Environmental Challenges

• Low renewable energy share
• Supply chain disruptions
• Inflationary pressures
• No overview on deforestation risk
• High water security risk at 39 facilities

Mitigation Strategies

• Roll out renewable energy program to decrease emissions
• Perform carbon life cycle analyses on Adient product design
• Implement water efficient usage actions on sites located in water high risk areas
• Define and monitor waste recovery rate on all Adient locations
• Perform a deforestation risk assessment
• Conducting a water security risk assessment and developing a company water policy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global supplier standards
• Supplier Commitment Letter
• Supplier diversity initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, heat waves)

Transition Risks

• Changes in customer and investor expectations
• Rising carbon taxes
• Supply chain disruptions

Opportunities

• Cost savings from energy and water management
• New customer contracts through sustainability leadership

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001 (partially)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight materials with higher recycled content
• Sustainable leather alternatives
• Cardyon® polyol in PU foam

Awards & Recognition

• WE 100 honoree
• MBNUSA All Stars Award
• MMSDC Corporation of the Year
• FCA Supplier Diversity Supplier of the Year
• Toyota Superior Supplier Diversity honoree
• Corp! Diversity Business Leader award
• WE USA and MBNUSA Corporate Buyer of the Year

Environmental Metrics

ESG Focus Areas

• Climate Action and Natural Resources
• Sustainable Materials and Circular Economy
• Human Rights
• Diversity, Equity and Inclusion
• Health and Safety at Work
• Corporate Governance

Environmental Achievements

• Reduced global scope 1 and 2 absolute CO2e emissions by 25% and scope 3 absolute emissions by 12% (as of Sept. 30, 2022, using 2019 as a base year).
• Completed 1,174 continuous improvement projects, conserving 6,092 metric tons of CO2e, 16 million liters of water, 25 million kWh-equivalent of fuel, 5,363 metric tons of waste, and 42 million kWh of electricity.
• Reduced solvent-based mold-release usage by 5.2% in North American foam plants, reducing material usage by 69 tons and lowering VOC generation by 66 tons.
• Switching out four double-cavity molds for triple-cavity molds at Hinjewadi, India plant, reduced electrical consumption by 41,000 kWh and prevented 30 tons of CO2e.

Social Achievements

• Published Adient’s Deforestation Policy, Human Rights Policy Statement, and DE&I Commitment Statement.
• Established three regional DE&I Councils and nearly two dozen employee-run BRGs globally.
• Leveraged Adient Accelerate high-potential employee development program, with three projects aligned to ESG topics.
• More than 10,000 salaried employees completed respectful workplace and unconscious bias training.

Governance Achievements

• Improved data gathering to track progress systematically and reliably.
• Enhanced ESG governance structure and responsibilities.
• Obtained independent verification of sustainability data and disclosures.

Climate Goals & Targets

Environmental Challenges

• Meeting customer expectations on sustainability targets (e.g., renewable electricity).
• Meeting investors’ increasing expectations on ESG performance.
• Rising carbon tax impacting profit and costs.
• Physical risks to assets from extreme weather events.
• Supply chain disruptions due to geopolitical events (e.g., Russia-Ukraine war, COVID lockdowns).

Mitigation Strategies

• Developing a revised renewable electricity goal and strategy.
• Implementing a new supplier due diligence tool to assess sustainability risks.
• Conducting supply chain mapping for key forest commodities.
• Improving energy efficiency in operations and transitioning to renewable energy.
• Implementing robust processes and controls to manage risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global supplier standards
• Supplier due diligence tool
• Conflict minerals management
• Requirements for sustainable certifications

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging assets and interrupting operations

Transition Risks

• Customer and investor expectations on ESG performance
• Rising carbon tax

Opportunities

• Cost savings from improved resource management
• Competitive advantage from being a sustainability leader

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001 (58% of locations)

Third-party Assurance: Independent third-party assurance obtained for sustainability data and disclosures.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 17 (Partnerships for the Goals)

Adient's initiatives contribute to these goals through various programs and actions detailed in the report.

Sustainable Products & Innovation

• UltraThin™ seat
• Soft Back Panel
• Soft Side Valance
• Shell Foam™

Awards & Recognition

• 2022 Altair Enlighten Award for UltraThin™ seat
• Superior Supplier Diversity Award from Toyota
• 2022 Top Global Champions for Supplier Diversity & Inclusion (SD&I), Platinum level, from WEConnect International
• Other awards listed on page 43

Environmental Metrics

ESG Focus Areas

• Climate Action and Natural Resources
• Sustainable Materials, Products and Circular Economy
• Diversity, Equity and Inclusion
• Human Rights and Workforce
• Corporate Governance
• Health and Safety at Work

Environmental Achievements

• Reduced scope 1 and 2 greenhouse gas emissions by 34% since 2019
• 26% of total electricity consumption attributed to renewable sources
• Completed 1,336 continuous improvement projects, annually conserving 7,394 metric tons of CO2e, 52 million liters of water, 21 million kWh-equivalent of fuel, and 2,032 metric tons of waste
• Installed a 600 kW solar system at Adient Automotive Strumica, reducing emissions by an estimated 530 metric tons of CO2e annually

Social Achievements

• Launched a new parental leave benefit in the US
• 93% of salaried employees voluntarily participated in human rights training
• 93% of salaried employees voluntarily completed inclusive workplace virtual training
• Continued to spend over $1 billion with diverse-owned suppliers

Governance Achievements

• Updated Ethics Policy to address evolving laws and regulations, including those regarding ESG
• 99%+ of salaried employees certified compliance with the updated Ethics Policy
• Implemented a new supplier due diligence process, including an ESG-related questionnaire sent to over 800 suppliers

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions increased, primarily due to higher production volumes and spend-based approach to Category 1 emissions calculations
• Four sites identified with water challenges related to flood risk and/or water quality
• Supplier base's sustainability maturity varies

Mitigation Strategies

• Transitioning to a process-based approach for calculating scope 3 emissions
• Implementing water management initiatives at high-water-risk sites
• Implementing a new supplier due diligence process and ESG questionnaire to assess supplier sustainability maturity

Supply Chain Management

Supplier Audits: Over 800 suppliers (representing >50% of total spend and >60% of total supplier emissions) received ESG questionnaires in FY2023.

Responsible Procurement

• Global Supplier Standards Manual
• ESG-related due diligence questionnaire
• Supplier Due Diligence Working Group to comply with Germany’s Supply Chain Due Diligence Act

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging assets and interrupting operations

Transition Risks

• Changes in regulations, supply chain issues, changes in stakeholder expectations

Opportunities

• Cost savings from improved energy, water, and transport management
• Competitive advantage from being a first mover on sustainability issues

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISCC+

Third-party Assurance: PricewaterhouseCoopers LLP (limited assurance on Scope 1 & 2 emissions and total energy consumption)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 5 (Gender Equality)
• Goal 17 (Partnerships for the Goals)

Adient's initiatives contribute to these goals through various programs and actions outlined in the report.

Sustainable Products & Innovation

• ProX IsoDynamic Seat
• Pure Essential seat
• Soft Back Panel
• Soft Side Valance
• Shell Foam™

Awards & Recognition

• Altair Enlighten Award
• GM Supplier of the Year Award
• Toyota Best Performance Supplier Award
• Numerous other OEM and industry awards

Environmental Metrics

ESG Focus Areas

• Human Rights
• Responsible Sourcing
• Supply Chain Transparency
• Forced Labor Prevention

Social Achievements

• Trained 12,000+ global salaried employees on prevention of child labor, forced labor, and other human rights risks in November 2023. This training also covered compliance, diversity, equity, inclusion, and sustainability topics.
• Updated supplier terms and conditions in July 2023 to strengthen provisions relating to forced labor.
• Developed a global supplier questionnaire sent to in-scope suppliers in August 2023 to assess human rights practices.
• Published its global Human Rights Policy Statement (updated February 2024) and requires compliance with international human rights and fair labor conditions as part of its contracting process.
• Updated its Ethics Policy in 2023 to explicitly address human rights risks, and other sustainability, regulatory and compliance risks.

Governance Achievements

• Adient’s ESG Steering Committee, comprised of executive management, meets quarterly to review key sustainability initiatives, activities and disclosures. The Vice President of Global Sustainability reports at least quarterly to the Board on Adient’s strategic short-term and longer-term ESG initiatives and objectives.

Climate Goals & Targets

Environmental Challenges

• Human rights risks in the supply chain, including forced labor.

Mitigation Strategies

• Developed a risk-based responsible sourcing program.
• Obtained certifications and added more robust vetting and contract provisions for vendors that supply labor to Adient.
• Implemented a global supplier questionnaire to assess human rights practices and require corrective action plans.
• Conducting additional due diligence related to laws such as the U.S. Uyghur Forced Labor Prevention Act and the Germany Supply Chain Due Diligence Act.
• Established a working group to address the requirements of the German Supply Chain Due Diligence Act.
• Updated supplier terms and conditions and Global Supplier Standards Manual to prohibit forced labor.
• Provided training to employees on identifying potential red flags related to forced labor.

Supply Chain Management

Responsible Procurement

• Supplier terms and conditions requiring compliance with all laws and prohibiting forced labor.
• Global Supplier Standards Manual with specific prohibitions against forced labor.
• Global supplier questionnaire to assess human rights practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact