American Axle & Manufacturing : 2023 AAM Sustainability Report

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2023 SUSTAINABILITY REPORT

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

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 more than 80 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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2023 SUSTAINABILITY REPORT

CHAIRMAN & CEO MESSAGE

AAM is driven by a culture of quality, operational excellence and technology leadership. In line with our vision, we are committed to POWERing a more sustainable future that is safer, greener and more inclusive for our Associates, customers, communities and stakeholders.

AT A GLANCE

While 2023 was a challenging year, we demonstrated resilience, achieved many successes and made progress in our business, community and sustainability (environmental, social and governance, or ESG) objectives.

Our continued electrification leadership was recognized by being named a PACEpilot finalist for our innovative electric drive technology. AAM also earned prestigious awards such as a Dorian Award for bottom line improvement and a 2023 General Motors Overdrive Award.

During 2023, we secured a new contract to supply e-Beam axles with our integrated 3-in-1e-Drive technology for a future electric vehicle program. In addition, we announced a $10 million (USD) investment in the Enertech Global Strategic Mobility Fund to support mobility and enhance our products and operations.

Focusing on our energy and emissions commitments, we exceeded our 2023 renewable and carbon-free energy goal in the U.S. We also strengthened our biodiversity efforts by becoming a member of the Wildlife Habitat Council to support sustainable ecosystems and the communities that surround them.

In 2023, we enhanced our Human Rights policy, showing our ongoing commitment to defending the dignity of our Associates, communities, and supply chain throughout our global operations. AAM continued to support the communities where we live and work with approximately 6,000 volunteer hours and over $1 million (USD) in monetary donations globally.

ADDITIONAL HIGHLIGHTS INCLUDE:

• Received 21 quality-related awards from our customers and other organizations.
• Successfully completed 14 major global product and program launches.
• Named one of America's Best Employers for Diversity by Forbes.
• Increased our Supplier Diversity spend by 12% year-over-year.
• Introduced a new Cybersecurity Awareness program.

At AAM, we remain committed to listening, learning and taking action that will move our company, communities and the environment forward, together. As you read this report, you will see the significant progress we have made.

I'm proud of what we've done across our business and around the globe. You can expect that at AAM, we will work to achieve profitable growth, and we will do it in a sustainable way.

As always, thank you for your support as we work toward a safer, brighter and more responsible future!

Sincerely,

David C. Dauch

Chairman of the Board and CEO

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CORPORATE GOVERNANCE AND

SUSTAINABILITY OVERSIGHT

ENERGY AND EMISSIONS

SUPPLY CHAIN ENGAGEMENT

AND RESILIENCY

ETHICS AND COMPLIANCE

PRODUCT SAFETY AND QUALITY

INNOVATIVE TECHNOLOGY

AND ELECTRIFICATION

COMMUNITY ENGAGEMENT

AAM'S MATERIAL TOPICS

SUSTAINABILITY

STRATEGY

AAM is focused on driving continuous improvement in the

sustainability areas most important to our company, with input from our

internal and external stakeholders.

As a part of our ongoing processes, we actively review and update our goals and progress in these key areas, ensuring they reflect our current business profile, industry norms and stakeholder expectations.

Our Policy Committee, which is led by the CEO, reviewed and approved

15 material topics identified in AAM's Materiality Assessment

completed in 2022. These material topics are connected to the areas of

Environmental, Social, Product, Supply Chain and Governance.

WATER AND

WASTEWATER MANAGEMENT

WASTE AND HAZARDOUS

MATERIALS MANAGEMENT

SUSTAINABLE PRODUCT DEVELOPMENT

CLIMATE-RISK MANAGEMENT

ASSOCIATE HEALTH,

SAFETY AND WELLBEING

TALENT ATTRACTION AND RETENTION

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ENVIRONMENTAL

2023 SUSTAINABILITY REPORT

AAM understands its responsibility to protect the environment and conserve natural resources in the places we do business. Emissions and energy reductions, water stewardship, and proper waste management are issues vital to the success of our business. AAM has set ambitious greenhouse gas emissions targets, validated by the Science Based Target initiative (SBTi), demonstrating our commitment to do our part to address climate change. In our 2022 Sustainability Report, we noted our expectation to establish new baselines in 2023 for emissions, energy, water, waste and renewable energy. This was due to the change in our business as a result of our acquisition of Tekfor on June 1, 2022, and including our non-manufacturing locations in our reporting. As a result of an analysis performed in 2023, we anticipate continuing to meet our previously disclosed environmental targets.

As such, new baselines were not established.

AAM utilizes our Climate Scenario Analysis to understand our impact and shape our priorities. This analysis identified potential risks, opportunities, and

MANAGEMENT

STRUCTURE AND

COMPLIANCE

mitigation actions, both physical and reputational, under different scenarios for the future. AAM used this information to support the revision of policies, especially related to projects for plant improvements. Another issue of increasing importance across industries and around the world is biodiversity. It is both a local and global concern in that industries can affect areas near their operations and biodiversity impacts can be felt throughout the world. As AAM continues its sustainability efforts, we have joined the Wildlife Habitat Council, whose mission is to recognize, inspire, engage and support businesses to achieve wins for nature.

AAM's Facilities and Environmental, Health and Safety (EHS) organization is managed using a global and local approach to ensure company policies and commitments are supported, while complying with requirements that may vary by market. The Vice President of Facilities and EHS reports directly to the President and Chief Operating Officer, allowing for direct communication and engagement with the teams for continuous feedback.

Reporting to the global organization, regional managers are responsible for making sure all AAM environmental programs are properly integrated and aligned with global policies. AAM management reviews EHS performance on a quarterly basis, and ensures corrective actions and adjustment strategies are put in place through plant-level operations reviews. At each facility, a designated EHS representative is responsible for tracking and maintaining environmental compliance.

Additionally, an environmental sustainability champion and established green team implement the E4 operating system and are responsible for the facility to achieve full compliance with the system. Within each green team is a designated subject matter expert for each of the primary environmental metrics: energy, water, and waste.