As part of the Company’s efforts to drive innovation and shape the future of automotive light weighting, it seeks to harness its technology, operations, and business practices to contribute to the automotive industry’s goal of reducing its carbon footprint. In magnitude of action, Nemak has established ambitious climate targets following approved Science Based Targets.  

In order to reinforce Nemak’s commitment to address environmental challenges, effect positive impact through its operations and deliver on its commitment to provide sustainable solutions to its customers, Nemak has issued two Sustainability-Linked Bonds (“SLBs”)—one in US dollars maturing in 2031, and the other in euros maturing in 2028.

To achieve, our climate strategy on a global level, we have built our framework on the following three pillars:

GREEN PRODUCTS​

• Low Carbon Products and Solutions
• Products that support global decarbonization
• Integration of circular economy principles into our products

GREEN PRODUCTION

• Continuous improvements in energy efficiency
• Technical innovation in processes

GREEN SOURCING

• Use of renewable energy
• Use of secondary alloy

As an energy intensive business, the efficient use of energy and use of renewable sources is a critical aspects for Nemak. Some of our key actions in area include:  

• Applying international standards such as ISO 50001, with which 33% of our facilities already in compliance. By 2022 we aim to have 100% coverage of ISO 501001 through out all our plants.
• Nemak plans to increase the percentage of renewable energy in its production processes to 25% by 2025, and to 70% by 2030.
• In 2021, Nemak’s total renewable energy contracts and certificates represented approximately 10% of its overall electricity consumption.

As Nemak strives to work in a circular economy approach, it continues to increase its use of recycled materials, engaging proactively with its supply chain and encouraging similar responsibility among its suppliers, while simultaneously increasing technical collaboration with its customers.

Although we are not a water and waste intensive business, based on global concern and scarcity for the resource, we continue to implement programs aimed at effective water management. Nemak owns and operates 23 wastewater treatment plants that remove contaminants and purify wastewater prior to discharge into local systems. To address the issue of water scarcity, Nemak has developed a water management strategy pursuant to ISO 14001 requirements, and has implemented it on a location-specific basis.

To Nemak, Sustainable Supply Chain Management encompasses active engagement with suppliers to align with Nemak's corporate targets and values, ensuring responsible environmental, social and economic practices throughout the entire supply chain.

Some key highlights in this area include:

• Supplier Sustainability Roundtable discussions on an annual basis
• Sending out commitment letters or letters of intent to our critical suppliers to accept to a CO2 reduction plan in line with Nemak’s goals
• Carrying out supplier audits
• Applying strict selection criteria, including mandating our suppliers to align with the Global Business Code for Suppliers