American Axle & Manufacturing : 2022 Report

BRINGING THE FUTURE FASTER.

POWERING

1. SUSTAINABLE FUTURE

2022 SUSTAINABILITY REPORT

	2022 SUSTAINABILITY REPORT	ENVIRONMENTAL	SOCIAL	PRODUCT	SUPPLY CHAIN	GOVERNANCE	APPENDIX

VISION

To POWER a more sustainable future while providing value to our stakeholders.

MISSION

Advancing global mobility through innovative technologies and sustainable solutions.

SUSTAINABILITY MISSION

~20,000*

ASSOCIATES

18

COUNTRIES

$5.8B

2022 REVENUE

To deliver POWER and build a safer, greener and sustainable future

for our Associates, customers, communities and the environment.

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 85 facilities in 18 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. To learn more, visit aam.com.

*Includes full-time and part-time Associates, along with co-ops, contractors, etc.

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	2022 SUSTAINABILITY REPORT	ENVIRONMENTAL	SOCIAL	PRODUCT	SUPPLY CHAIN	GOVERNANCE	APPENDIX

TABLE OF CONTENTS

1. 2022 Highlights
2. Chairman and CEO Letter
3. Sustainability Priority Topics

8 Environmental

1. Protecting the Environment
2. Environmental Objectives

1. Environmental Stewardship

21 Social

1. Focusing on People
2. Health and Safety

1. Diversity, Equity and Inclusion

1. Respect for Human Rights
2. AAM 360

46 Product

1. Delivering Power
2. Shift to Electrification

1. Sustainable Product Practices
2. Q4 Quality System
3. Quality Awards

54 Supply Chain

1. Collaborating with Partners
2. Doing Business with AAM

1. Supply Chain Sustainability

1. Supply Chain Diversity

63 Governance

64 Board Level Oversight

1. Sustainability Governance
2. Cybersecurity and Data Protection
3. Ethics and Compliance

72 Industry Associations

73 Appendix

74 About this Report

1. Supplemental Information

1. UN SDGs Index
2. GRI Standards Index

1. SASB Standards Index
2. TCFD Standards Index

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2022 SUSTAINABILITY REPORT	ENVIRONMENTAL	SOCIAL	PRODUCT	SUPPLY CHAIN	GOVERNANCE	APPENDIX

2022 HIGHLIGHTS

Received three Automotive News

PACE program awards

Achieved an A- on the CDP

Climate Change survey

Achieved Silver Status on the EcoVadis

Sustainability Assessment

Achieved SBTi validation of

GHG Emissions goals

Named one of America's

Best Large Employers by Forbes

Improved on all Safety Performance metrics

Completed a sustainability

materiality assessment

Launched 17 major global

product programs

Hired our first Executive of Diversity,

Equity and Inclusion

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	2022 SUSTAINABILITY REPORT	ENVIRONMENTAL	SOCIAL	PRODUCT	SUPPLY CHAIN	GOVERNANCE	APPENDIX

CHAIRMAN AND CEO LETTER

AAM was founded on a set of Cultural Values and Strategic Principles that defines who we are to drive performance and build value. These Values and Principles are core to our vision of POWERing a more sustainable future that is safer, greener and more inclusive for Associates, customers, communities and stakeholders.

AT A GLANCE

In 2022, we made great strides in our sustainability (environmental, social and governance, or ESG) objectives.

AAM was among the very first automotive Tier 1 suppliers to have net‐ zero emissions targets validated by SBTi, the top external validation source in the industry. In addition, we performed a sustainability materiality assessment to identify and prioritize sustainability topics and initiatives for 2023 and beyond.

On the product side, we demonstrated electrification leadership through state-of-the-art electric drive technology by winning three Automotive News PACE program awards for our Electric Vehicle (EV) Technologies. Our Hybrid-Electric2-speed Electric Drive Unit (EDU) won both a PACE Award and PACE Innovation Partnership Award, while our Electric Integrated 3-In-1Wheel-End EDU was named a PACEpilot Innovation to Watch.

Early in 2022, we announced our investment in Autotech Ventures. This partnership complements AAM's mission to develop and produce the industry's most efficient and powerful EDUs. In June, we completed our acquisition of Tekfor Group. This move leverages our core strengths, increases our electrification product portfolio, and diversifies our geographic and customer sales mix.

We expanded our efforts to create a more respectful and inclusive company culture for all Associates. We welcomed AAM's first Executive of Diversity, Equity and Inclusion (DEI) in 2022, and further expanded our DEI programming globally. We also included DEI-focused metrics among our key performance and incentive objectives for all Salaried Associates.

ADDITIONAL HIGHLIGHTS INCLUDE:

• Received recognition from our customers and other organizations for our quality, safety and sustainability performance.
• Successfully completed 17 major global product and program launches.
• Established a Supplier Sustainability Council to provide guidance and recommendations around sustainability initiatives between AAM and our global network of suppliers.
• Continued our support of the communities where we live and work through monetary donations and volunteer events with organizations that work to better our local communities, schools and families.
• Named one of America's Best Large Employers by Forbes for the third time.

At AAM, we place a high priority on advancing our sustainability objectives because we believe they will contribute meaningfully to our future success. As you read this report, you will see the significant progress we have made.

I'm proud of what our team has accomplished in 2022 and proud of where we're going. Now more than ever, we are deeply committed to profitably growing our business in a way that is sustainable and socially responsible.

As always, thank you for your support as we work toward Bringing the Future Faster.

Sincerely,

David C. Dauch

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