Milestone Moments: AAM’s First ESG Report

Published on February 10, 2025

2025_ESG_Report_Cover_Graphic

Imagine a roadmap where every milestone leads to a greener, more sustainable future. In 2020, AAM hit a major marker on that journey by publishing its first Environmental, Social and Governance (ESG) Report, covering the 2019 calendar year. This report wasn’t just another document—it was a declaration of AAM’s commitment to POWERing a more sustainable future that is safer, greener and more inclusive for our Associates, customers, communities and stakeholders.

The importance of ESG efforts at AAM cannot be overstated. As a global company, we understand that our Associates, customers, suppliers, shareholders and the communities in which we operate are all impacted by the initiatives we put in place. Recognizing this, AAM, with input from both internal and external stakeholders, identified 15 material topics to monitor, review and report progress on. These topics reflect the critical areas where our efforts can drive meaningful change and align with emerging global regulations.

Sourcing renewable and carbon-free energy is at the core of AAM's strategy to meet net-zero emissions goals. By combining direct utility purchases and renewable energy certificates (RECs) and Emission-Free Energy Credits (EFECs), AAM is working toward 100% carbon-free and renewable energy by 2035, with an interim target of achieving this in the U.S. by 2025. In 2023, AAM surpassed its goal in the U.S., achieving 75% of energy from renewable sources or offset by RECs and EFECs and exceeded the initial 2023 target of 50%.

When AAM began reporting ESG data, there was no dedicated team for corporate sustainability. Instead, cross-functional teams from Legal, Finance and Marketing collaborated to compile ESG-related information. Over time, as external stakeholders, such as investors and customers, requested more comprehensive ESG disclosures, AAM responded by creating the Corporate Sustainability Team (CST). This team now works closely with subject matter experts across various departments, ensuring that the company's ESG efforts are aligned with business strategies and meet regulatory requirements.

The growth of AAM's Corporate Sustainability Team has allowed the organization to implement a more formal structure, which includes executive topic owners and dedicated ESG champions. This framework enables AAM to identify emerging ESG topics, evaluate potential gaps and develop effective solutions. With the increasing importance of ESG in the global marketplace, AAM remains committed to continuously improving its processes, striving for excellence and ensuring that our initiatives create lasting value for all stakeholders.

The release of AAM's first ESG report marks an important milestone in the company's journey toward a sustainable future. Looking ahead, we continue to evaluate our progress and set new goals to ensure that AAM remains at the front of ESG leadership in the automotive industry. Through our continued dedication to quality, operational excellence and technological leadership, AAM will continue to play a vital role in shaping a more sustainable world.

Since that first report, AAM has made significant strides in sustainability and governance. The 2023 ESG report showcases some remarkable achievements:

  • Achieved ISO 50001 certification at all manufacturing facilities
  • Received 21 quality performance awards
  • Achieved 22,000+ consolidated days without a recordable safety incident
  • Introduced a new Cybersecurity Awareness program, #AAMSecure
  • Named Best Employers for Diversity by Forbes
  • Launched 14 major global product programs
  • Recognized as a 2023 Automotive News PACEpilot program finalist
  • Exceeded our 2023 U.S. renewable and carbon-free energy goal
  • Increased Supplier Diversity spend year-over-year by 12%

“Being a part of the AAM Corporate Sustainability Team has been a truly fulfilling experience,” said Alex Provencher, Lead Sustainability Strategist. “ESG’s expansion and growth within the business—supported by leadership from the top of the business—has been a testament to AAM’s ability to overcome challenges and dedication to continuous improvement.”

AAM Milestone Moments is a monthly series celebrating and reflecting on key achievements in AAM’s 30-year history. Ranging from watershed innovations and technological advances to foundational programs and community initiatives that are part of AAM’s DNA, these AAM Milestone Moments will each tell an important piece of the AAM story.

AMERICAN AXLE & MANUFACTURING

One Dauch Drive
Detroit, MI 48211-1198