Climate Change Data

Environmental Metrics

ESG Focus Areas

• Culture and Ethics
• Respect for People
• Health and Safety
• Environmental Sustainability
• Supply Chain Responsibility
• Community Engagement

Environmental Achievements

• Implementation of a global environmental compliance program requiring ISO 14001 or equivalent certification at manufacturing facilities.
• Lean manufacturing principles resulting in reduced materials, equipment, CO2 emissions, energy use, and waste.
• Lightweight Structures and Propulsion Systems strategy to reduce emissions and save energy.

Social Achievements

• Adoption of a Code of Conduct and Employee Bill of Rights promoting fair treatment, safe working conditions, and open communication.
• Commitment to diversity and inclusion, including in Board and senior management.
• Global charitable giving program "Making People's Lives Better", including support for COVID-19 relief efforts (ventilator parts, face shields, masks).

Governance Achievements

• Adoption of a Code of Conduct reviewed annually, with training for employees on ethical behavior and reporting mechanisms.
• Establishment of a confidential and anonymous whistle-blowing line.
• Management incentive compensation linked to pre-tax profits and share ownership.

Climate Goals & Targets

Environmental Challenges

• Meeting increasingly stringent environmental regulations and customer expectations for supply chain sustainability.
• Responding to the COVID-19 pandemic and ensuring employee health and safety.
• Maintaining ethical conduct across various global operations.

Mitigation Strategies

• Global environmental compliance program and ISO 14001 certifications.
• Robust COVID-19 safety protocols and industry collaboration.
• Code of Conduct, training, whistle-blowing line, and regular reviews.

Supply Chain Management

Responsible Procurement

• Martinrea Supplier Quality Guidelines and Supplier Assessments covering product safety, social responsibility, environmental sustainability, code of conduct, and diversity and inclusion.

Climate-Related Risks & Opportunities

Opportunities

• Lightweight Structures and Propulsion Systems strategy to meet regulatory requirements and consumer demand for environmentally friendly vehicles.

Sustainable Products & Innovation

• Lightweight Structures and Propulsion Systems

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Community Involvement
• Workplace Health and Safety

Environmental Achievements

• Reduced overall energy consumption and carbon emissions from 2019 baseline levels.
• Reduced water utilization volumes from 2019 baseline levels.
• 92.5% of manufacturing facilities are ISO 14001 certified.
• Implemented various energy reduction initiatives (LED lighting, air leak prevention, etc.)
• Implemented water use reduction initiatives (disciplined programs, leak repair, etc.)

Social Achievements

• Implemented robust safety protocols in response to the COVID-19 pandemic.
• Donated 1 million face masks to the Province of Ontario.
• Launched a global charitable giving program called “Making People’s Lives Better.”
• Expanded Supplier Diversity program with purchases exceeding $200 million annually from over 150 diverse companies.
• Improved safety performance and outperformed industry standards.

Governance Achievements

• Implemented a Code of Conduct for ethical business practices.
• Established a Sustainability Steering Committee.
• Board of Directors has two female directors out of eight (25%).
• Implemented diversity strategies in recruitment and succession planning.

Climate Goals & Targets

Environmental Challenges

• Climate change regulations and their potential impact on capital expenditures and operating costs.
• Extreme weather events and their potential impact on operations.
• Customer focus on supply chain sustainability and potential impact on future sourcing decisions.
• Semiconductor chip shortages and production shutdowns affecting 2021 data.

Mitigation Strategies

• Engagement with customers to understand their requirements and regulatory compliance.
• Investment in R&D and partnerships with cutting-edge companies.
• Implementation of Lean Manufacturing practices to minimize waste.
• Energy efficiency and water reduction projects.
• Adherence to Environmental Management Systems (ISO 14001).
• Disaster response and recovery plan at each facility.
• Supplier assessments to address potential risks.
• Employment of SmartWay Certified Carriers to reduce shipping distances.

Supply Chain Management

Responsible Procurement

• Supplier selection process ensuring cascade of company culture and values.
• Supplier Diversity program.
• Encouragement of ISO 14001 certification for suppliers.
• Code of Conduct and Ethics for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather or natural disasters

Transition Risks

• Climate change regulations
• Customer focus on supply chain sustainability

Opportunities

• Development of lightweight materials to increase fuel efficiency.
• Investment in battery technology for EVs.
• Increased efficiency in operations using Lean Manufacturing.

Reporting Standards

Frameworks Used: TCFD, GRI (moving towards), SASB (where feasible), CDP

Certifications: ISO 14001

Sustainable Products & Innovation

• Lightweight Structures and Propulsion Systems
• Graphene-enhanced Li-Ion batteries
• Graphene-enhanced brake lines

Awards & Recognition

• GBB Zero Waste Initiative (Auburn Hills Technical Center)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Reduction
• Carbon Reduction
• Health and Safety
• Diversity, Equity and Inclusion
• Supply Chain Responsibility
• Community Involvement
• Human Rights

Environmental Achievements

• Reduced carbon intensity by 19% since 2019 baseline
• Reduced energy intensity by 16% since 2019 baseline
• Approximately 42% of electricity consumed comes from renewable sources
• Increased CDP score to ‘B’ for climate change management (from ‘C’ in 2021)
• 92.5% of manufacturing facilities are ISO 14001 certified

Social Achievements

• Accident Frequency Rate improved by 86% since 2014 and is less than half the industry standard
• Diversity Committee formed additional subcommittees to focus on mental health (MindsMatter), Women at Martinrea, and Young Professionals (YoPro)
• Company-wide TRIF rates reduced by 86% since 2014 and improved by 45% since 2019
• Donated food, clothes, and supplies to communities affected by natural disasters
• Partnered with Givesome to support global charity projects

Governance Achievements

• Board consists of nine directors, seven of whom are independent
• 33% of the Board are women
• Implemented a Code of Conduct and Ethics
• Established a whistleblower hotline

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Stringent fuel economy and emissions standards
• Move to lighter-weight vehicles
• Electrification
• Alternative energy sources
• Increased efficiency of, or move to phase out, internal combustion engines
• Autonomous vehicles or shared riding
• Supply chain sustainability
• Severe weather or natural disasters
• Customer focus on supply chain sustainability

Mitigation Strategies

• Energy optimization programs
• Exploration of renewable energy options
• Investment in R&D
• Partnerships with cutting-edge companies
• Strategic planning
• Engagement with trade associations and industry groups
• Lean Manufacturing practices
• Zero Landfill program
• Energy efficiency and water reduction projects
• Adherence to Environmental Management Systems (e.g., ISO 14001)
• Disaster response and recovery plan
• Alternate sourcing strategies
• Supplier assessments

Supply Chain Management

Supplier Audits: High-risk potential suppliers audited in 2022

Responsible Procurement

• Supplier Code of Conduct and Ethics
• Supplier Diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Regulatory changes
• Market shifts to EVs

Opportunities

• Lightweighting
• Electrification
• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, CDP

Certifications: ISO 14001

Sustainable Products & Innovation

• Graphene-enhanced brake lines
• Lightweight structures and propulsion systems for EVs

Awards & Recognition

• 2022 Automotive News PACE Award for Brake Lines with GrapheneGuard®
• Leave It Better award to Martinrea Spain

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Health and Safety
• Responsible Sourcing
• Community Involvement

Environmental Achievements

• Reduced energy intensity by 3% in 2023 relative to 2022.
• Reduced carbon intensity (Scope 1 and 2) by 3% year-over-year from 2019 baseline.
• Installed onsite solar panels in Spain facilities, powering approximately 10% of facility electricity demands.
• >90% of waste diverted from landfill in 29 plants.
• Reduced water consumption by 50% from 2019 baseline.

Social Achievements

• Improved Total Recordable Injury Frequency (TRIF) rates by 50% since 2019 and 9% in 2023.
• Launched a comprehensive sustainability survey with main suppliers in 2023.
• Recognized as 2023 CADIA Impact Awards Winner of Systemic Change and Winner of Leadership Commitment for advancing DEI goals.
• Increased employment ratio at Jackson Interfaith Shelter from <5% to over 60% through partnership with Drive Staffing Solutions.
• Planted 1,107 trees, estimated to absorb approximately 24 metric tons of CO2.

Governance Achievements

• 7 out of 9 directors on the Board are independent; 33% of the Board are women.
• Implemented a global environmental compliance program, with 92.5% of manufacturing facilities ISO 14001 certified.
• Established a confidential and anonymous whistle-blowing line.

Climate Goals & Targets

Environmental Challenges

• Stringent fuel economy and emissions standards.
• Transition to lighter-weight vehicles and electrification.
• Supply chain disruptions and regional energy shortages.
• Increasingly stringent climate-related regulations.
• Customer focus on supply chain sustainability.

Mitigation Strategies

• Leveraging lean manufacturing practices to minimize waste and optimize energy.
• Utilizing Environmental Management Systems (e.g., ISO 14001).
• Developing disaster response and recovery plans.
• Developing alternative sourcing strategies.
• Engaging customers to understand their sustainability priorities.

Supply Chain Management

Supplier Audits: Limited audits on high-risk suppliers

Responsible Procurement

• Supplier Code of Conduct and Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Stringent regulations, market shifts to EVs

Opportunities

• Lightweighting technologies for EVs, thermal management products

Reporting Standards

Frameworks Used: UN SDGs, TCFD (partially), CDP

Certifications: ISO 14001, ISO 45001 (28% of manufacturing plants)

UN Sustainable Development Goals

• Not disclosed

Aligns with 8 UN SDGs (detailed in Appendix A).

Sustainable Products & Innovation

• Lightweight structures, thermal management products, graphene-enhanced brake lines

Awards & Recognition

• 2023 CADIA Impact Awards (Systemic Change and Leadership Commitment)
• 2022 Automotive News PACE Award (GrapheneGuard® brake lines)