Natural Resources
At Adient, we recognize the importance of the Earth’s natural resources such as water and forests to the overall health of our shared planet, and we understand preserving natural resources helps to ensure biodiversity, protect nature and ecosystems, and mitigate climate change. We also realize the importance of a healthy planet to our business continuity and are working to conserve these precious resources in our operations globally.
In 2022, we issued our Deforestation Policy and company Water Management Policy; in 2023, we updated our Deforestation Policy to include our recent actions and progress toward our goals. We are also a proud supporter of the Carbon Disclosure Project (CDP) and respond to the Climate Change, Forests and Water Security questionnaires each year. We adhere to applicable local, regional or international laws regulating the use of natural resources and are working to procure our products from more sustainable sources. Adient’s Environmental, Social and Governance Steering Committee and Board of Directors oversee and review, at least quarterly, our actions around water and forest commodities management.
2023 CDP Grades: Climate Change (B), Forests (C), Water Security (B)
Our Approach:
Forest Commodities
Adient purchased the following forest commodities for our business processes in fiscal year 2022:
| Commodity | Description Use | Estimated Volume Purchased |
|---|---|---|
| Leather | material covering for seating, armrests and headrests | 5,561,000 square meters* |
| Timber-based packaging | incoming and outgoing product materials packaging | 162,200 metric tons** |
| Soy Product | natural oil substitute component for some foam cushion products | 851 metric tons |
| Palm Oil Product | natural oil substitute component for some foam cushion products | 486 metric tons |
*In 2023, Adient has refined its leather square meter calculation using factors provided by a 3rd party to calculate FLAG (Forestry, Land, Agriculture) emissions. We estimate the square meters by using Adient’s spend value and associated FLAG CO2e calculated emissions as a factor combined into a calculation for leather kgs CO2e / square meter taken from the Leather Carbon Footprint EU Standard 16887:2017. We have also recalculated fiscal years 2021 and 2020 purchased leather square meters estimations using this same methodology.
**Timber-based packaging estimate is calculated using Adient’s spend values and average price using the US Federal Reserve Pulp and Paper Pricing Index
Risk Assessment
In 2022, we completed a high-level risk assessment of leather and timber-based packaging to understand more about how and where each commodity was sourced and the potential business impacts to Adient.
Transparency
In 2023, we completed a supply chain mapping exercise of leather, timber-based packaging, soy and palm oil products. We gained meaningful insight into our tier 1 and tier 2 suppliers and sourcing regions, and we will continue mapping our supply chain each year to close gaps by using annual supplier surveys and leveraging assistance from non-governmental organizations (NGOs). This will include a compliance assessment for regulatory and internal requirements.
Classification System
From the supply chain mapping exercise, we developed a classification system for forest commodity suppliers where their risk potential is ranked high, medium or low based on product sourcing region, supply chain mitigation actions, willingness to share information, and sustainable certifications. The system may be used to inform future purchasing decisions.
FLAG Emissions
In 2023, we are calculating our Forestry, Land and Agricultural (FLAG) emissions to understand our carbon footprint related to forest commodity procurement and in line with the Science Based Targets initiative (SBTi).
Stakeholder Groups
We are a member of the Leather Working Group and meet regularly with Global Canopy and World Wildlife Fund (WWF) to discuss deforestation related topics. In 2023, we participated in a WWF sponsored workshop with other automotive suppliers to understand potential opportunities in our leather supply chain.
International Sustainability & Carbon Certification (ISCC)
We are working with our supply chains to procure less carbon-intensive chemicals for our foam cushion products as part of the ISCC certification, including soy and palm oils.
Our progress toward fiscal year 2023 targets*
| Commitment | Status | FY23 Progress |
|---|---|---|
| Conduct supply chain mapping of Adient-controlled leather products (100%) by 2025 | In Progress | > Engagement with 100% of key** leather suppliers (directed and controlled) in the mapping exercise > 42% tier 1 response rate (58% data gap filled via market research) > 70% of sourcing regions identified > 19% tier 2+ response rate |
| Conduct supply chain mapping of Adient-controlled timber-based products (75%) by 2025 | In Progress | > Engagement with 100% of key packaging suppliers (directed and controlled) in the mapping exercise > 70% tier 1 response rate (58% data gap filled via market research) > 70% of sourcing regions identified > 47% tier 2+ response rate |
| Conduct supply chain mapping of Adient-controlled soy and palm products (100%) by 2025 | In Progress | > 100% tier 1 response rate and sourcing regions identified > 75% tier 2+ response rate |
| Work with 75% of our timber-based packaging supply chain to understand status of sustainable certifications during 2023 | Achieved | Engaged with 100% of key packaging suppliers. 43% of tier 1 suppliers can provide sustainably certified product |
| Work with 100% of our soy and palm supply chain to understand status of sustainable certifications during 2023 | Achieved | 100% of tier 1 suppliers can offer sustainably certified product |
*As of Sept. 30, 2023
**Adient excluded low spend suppliers from the mapping exercise
Our Approach:
Water Management
Adient believes that access to clean, safe drinking water is a fundamental human right. We conduct our businesses in a manner to minimize withdrawals and ensure water is managed in compliance to local regulations and best practices. We use water in our facilities for general safe drinking-water, sanitation and hygiene (WASH) purposes and as a component in some of our production processes, recycling and re-using water wherever possible.
| Percent of water used in production process |
|---|
| Less than 5%: 43% of facilities |
| 10-25%: 30% of facilities |
| 25-50%: 27% of facilities |
| Fiscal Year 2022: Total Adient | |
|---|---|
| Total Water Withdrawals | 1800 Megaliters (similar to previous year) |
| Third Party-Water | 1560 Megaliters (similar to previous year) |
| Groundwater Withdrawals – On Site | 240 Megaliters (similar to previous year) |
| Wastewater Discharges | 789 Megaliters (similar to previous year) |
| Water Intensity | 0.034 US gallons / unit total revenue (lower than previous year) |
Risk Assessment
We completed water-security risk assessments in fiscal years 2021 and 2023, identifying 41 sites that reside in regions of highwater stress. From these 41 sites, we have identified four sites with water challenges relating to flood risk and/or water quality. Those four sites have equipment and procedures in place to mitigate the risks, and we will continue to monitor these challenges globally.
Scenario Analysis
We have completed a water scenario analysis and identified potential scenarios based on 2020, 2030 and 2050 data simulations. From the analysis we plan to continue analyzing our risks, work with experts in water security, establish monitoring key performance indicators (KPIs), and continue working with high-consumption locations to reduce their water usage. Through our water reduction project initiatives around the world in fiscal year 2022, we reduced consumption by 16 million liters (16 megaliters).
Wastewater
We track and monitor wastewater discharges from all of our global sites. All water is discharged/treated within local effluent regulatory parameters. Sites are audited by third parties to ensure regulatory compliance.
Learn More
For more information about Adient’s actions to combat deforestation and preserve our natural resources, please visit adient.com/sustainability or email sustainability@adient.com.