AAM Achieves Top Industry Validation for Emissions Targets
American Axle & Manufacturing (NYSE: AXL) has achieved validation of its net-zero emissions targets by the Science Based Targets initiative (SBTi), becoming one of the first automotive Tier 1 suppliers to do so. The company aims to reach net-zero greenhouse gas emissions across its value chain by 2040, with specific targets including a 45% reduction in Scope 1 and 2 emissions by 2030 and a 90% reduction by 2040. AAM also plans for two long-term targets to cut Scope 3 emissions by 90% by 2040.
- AAM validated by SBTi for ambitious net-zero emissions targets.
- First Tier 1 automotive supplier to achieve SBTi validation.
- Commitment to reduce Scope 1 and 2 emissions by 45% by 2030.
- No immediate financial metrics or revenue implications provided.
DETROIT, Nov. 30, 2022 /PRNewswire/ -- American Axle & Manufacturing (AAM), (NYSE: AXL) continues its drive to sustainability leadership, achieving validation of its net-zero emissions targets by the climate-action organization Science Based Targets initiative. SBTi is a global initiative leading the way to a zero-carbon economy by driving the establishment of ambitious, science-based emissions-reduction targets in various industries. AAM has committed to reach net-zero greenhouse gas emissions across its value chain by 2040 from 2020. As such, AAM is among the first automotive Tier 1 suppliers to have its net-zero targets validated by SBTi.
"AAM is focused on driving continuous improvement in the sustainability areas most important to our company, our stakeholders and the communities in which we work and live," said Michael K. Simonte, AAM President. "Receiving SBT validation of our emissions targets – currently the most ambitious designation available through the SBTi process – ensures AAM is on the right path to net-zero emissions."
The SBTi ensures that companies are pursuing near- and long-term actions to reduce emissions at a pace that is consistent with keeping global warming below 1.5°C.
AAM has committed to three specific near-term targets that have been validated by SBTi:
- Reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions 45 percent by 2030 from a 2020 baseline;
- Reduce absolute Scope 3 GHG emissions from purchased goods and services, capital goods, fuel and energy related activities, upstream transportation and distribution, waste generated in operations, business travel, employee commuting, downstream transportation and distribution, end-of-life treatment of sold products and investments 25 percent within the same timeframe;
- Require that 66.7 percent of its suppliers by emissions covering purchased goods and services will have science-based targets by 2027.
The company has also committed to two long-term targets, also validated by SBTi:
- Reduce absolute Scope 1 and 2 GHG emissions 90 percent by 2040 from 2020.
- Reduce absolute Scope 3 GHG emissions 90 percent within the same timeframe.
Science Based Targets
The Science Based Targets initiative helps companies in various sectors set science-based targets and boost their competitive advantage in the transition to the low-carbon economy. SBTi shows companies and financial institutions how much and how quickly they need to reduce their greenhouse gas emissions to prevent the worst effects of climate change. Together with the annual disclosure of GHG emissions and progress against these targets, SBTi helps companies ensure maximum transparency and accountability on their journey to net-zero. SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature.
"Congratulations on your approved science-based targets," the SBTi validation report stated. "The Intergovernmental Panel on Climate Change special report on 1.5°C highlighted the necessity to reach net-zero emissions by mid-century. (AAM's) SBTs are key elements in setting out on this net-zero decarbonization trajectory while maximizing transparency and accountability throughout."
SBTi reports that while it is still possible to limit global temperature rise to 1.5°C by the end of the century, our climate is dangerously close to that threshold. Therefore, it is very important to halve global emissions before 2030 and achieve net-zero by 2050. AAM encourages all of its stakeholders to follow its lead and also commit to science-based 1.5°C and net zero targets.
About AAM
As a leading global Tier 1 Automotive and Mobility Supplier, AAM (NYSE: AXL) designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in Detroit with nearly 80 facilities in 17 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. To learn more, visit aam.com.
About Science Based Targets
Science Based Targets drives ambitious climate action in the private sector by enabling organizations to set science-based emissions reduction targets. To learn more, visit SBT.
Media Contacts: Christopher M. Son, AAM
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com
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SOURCE American Axle & Manufacturing Holdings, Inc.
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