Sustainability in Motion - 2021 Sustainability Report
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OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS CO N T E N T S Aptiv brings safe, green OVERVIEW / 1 A NOTE FROM OUR CEO 1 and connected products APTIV AT A GLANCE 2 to life — a mission that NEW THIS YEAR 3 RECENT RECOGNITION 3 guides us as we help our MATERIALITY ANALYSIS 4 customers and the world OUR SUSTAINABILITY STRATEGY 5 OUR STRATEGIC COMMITMENTS 6 put Sustainability in Motion. PEOPLE / 7 HEALTH AND SAFETY 8 OUR VALUES 10 DIVERSITY AND INCLUSION 12 COMMUNITY17 PRODUCTS / 19 PARTNER OF CHOICE 20 OPERATIONAL EXECUTION 22 SUSTAINABILITY IN OUR SUPPLY CHAIN 24 DATA SECURITY 25 PLANET / 26 OUR CARBON FOOTPRINT 27 WATER, WASTE AND MATERIALS 30 PLATFORM / 32 GOVERNANCE AND RISK MANAGEMENT 33 GOVERNING OUR SUPPLY CHAIN 34 ETHICS AND INTEGRITY 35 BOARD OF DIRECTORS 36 STAKEHOLDER ENGAGEMENT 37 2025 COMMITMENTS / 38 PEOPLE39 PRODUCTS41 PLANET43 PLATFORM44 ABOUT THIS REPORT / 45 GRI INDEX 46 SASB INDEX 51 TCFD INDEX 53 2021 SUSTAINABILITY REPORT
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS OV E RVI EW A N OT E FRO M O U R CEO Aptiv’s common values underpin our success. For a global organization like ours, having a core set of values bridges cultural differences and keeps everyone moving toward the same goals, which was critical last year. As we responded to the pandemic CA R B O N - N EU T R A L BY 2040 plan, and then focus on executing in 2020, our values of “acting with against that plan. We track our Critical to this effort is Aptiv’s urgency” and “working as one team” sustainability progress every month, ambitious plan to provide carbon allowed Aptiv to make important at every step. We assign sustainability neutral products to our customers decisions quickly, and our value of objectives to the heads of our and achieve net neutrality by 2040. “thinking and acting like owners” business units, and they cascade As with the pandemic response, we meant everyone on the front line those throughout our organizations. fully understand that reaching this goal did the right thing to keep our will take a comprehensive strategy, In all of these efforts, our values people and our communities safe. intense coordination and execution by continue to anchor us, especially the This was an enormous undertaking, many people over a sustained period. most important value of all: “Always and I could not be prouder of the The goal builds on the commitments do the right thing, the right way.” way our team met the challenges. we set out in last year’s sustainability Recognized by Ethisphere Magazine Our response to the pandemic report: to decrease CO2 emissions by as one of the World’s Most Ethical demonstrated what we can accomplish 25 percent by 2025 while increasing Companies for the ninth year in a row, when we have that sense of urgency, our recycling of waste, conserving Aptiv understands that how we do that single purpose and that water and sourcing responsibly. things matters as much as what we do. understanding of priorities throughout To meet those commitments, we need This is how change happens. This the organization. It is a powerful lesson. to have the right people in place. For is how we build for the future. The At Aptiv, applying that lesson starts Aptiv, diversity and inclusion are not pandemic tested us, it tested our with our mission to enable a safer, just checkboxes. We understand that values. We not only overcame the greener and more connected future they are vital for the success of our challenge, it made us stronger. of mobility. Following our mission, organization. Our pandemic response our products help transform society drew on the strengths of people from by saving lives, reducing carbon vastly different backgrounds, from emissions and connecting people in all over the world, and those people new ways. Knowing that our products were diverse in experience, as well as can have that impact is a significant gender and ethnicity. Diversity gives motivator for our people, and it us resilience, and inclusion gives brings focus to everything we do. us strength. These factors will be K E VI N P. CL A R K instrumental as we continue to move President & Chief Executive Officer But even as our mission promises technology forward in a sustainable way. sustainability through our products, we also apply it to the way we At Aptiv, sustainability starts with operate, pushing ourselves to our mission and is executed through achieve sustainable operations our products. But we realize that the with the same level of passion. only way to hit targets is to have a 2021 SUSTAINABILITY REPORT 1
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS A P TIV AT A G L A N CE Putting Sustainability in Motion Aptiv innovates at the intersection of disruptive trends in the mobility industry. As a global technology leader, our growing portfolio of solutions makes vehicles safer, greener and more connected, enabling the future of mobility and a more sustainable world. SA FE GREEN CO N N EC T E D A society with Zero emissions, Seamless integration zero accidents, minimizing mobility's between the vehicle, zero injuries and total lifecycle its passengers and zero fatalities environmental impact the world around it 180,000+ 44 $13.1B employees countries 2020 revenue 18,200 124 $1.94 scientists and engineers manufacturing facilities 2020 earnings per share adjusted for restructuring $1.3B and other special items 2020 investment 12 in engineering major technical centers O U R B US I N E S S S EG M E N T S The only provider of both the brain and nervous system of the vehicle Aptiv is accelerating the transition to the electrified, software-defined vehicle of the future — employing a holistic engineering and development approach to optimize the full vehicle stack of software and system solutions. Advanced Safety & User Experience Signal & Power Solutions Encompasses our deep expertise in Leverages our heritage as a global software-enabled solutions that improve architecture provider and systems the safety, comfort and convenience of integrator to deliver the high-speed the vehicle, supported by core capabilities data and high-power electrical in advanced computing, connectivity, systems required for feature-rich, data management and analytics. highly automated vehicles. The democratization of technologies such as active safety, high voltage electrification and advanced vehicle architectures has the potential to save lives, reduce carbon emissions and save the automotive industry billions in development and repair costs. Never has Aptiv’s mission been more meaningful than it is today. 2021 SUSTAINABILITY REPORT 2
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS New This Year As Aptiv continues to progress toward our 2025 commitments, we are doing what it takes to ensure that our organization meets those commitments on time and in a transparent way — while planning for sustainability goals beyond 2025. S E T T I N G N EW TA RG E T S This strong, foundational focus on E N H A N CI N G O U R R E P O R T I N G sustainability makes Aptiv a partner of Sustainability has always been core to Transparency in our sustainability choice for our customers, a desirable Aptiv’s business, values and culture. efforts is important to us and to place to work for our employees Our solutions address our customers’ our stakeholders. As we continue to and a valued contributor to the toughest challenges while delivering push our sustainability performance, communities in which we operate. innovative mobility technologies that we are always looking for ways to help the industry and the world become better ensure that we report our safer, greener and more connected O PE R AT I O N A LI Z I N G O U R progress as openly as possible. — and thereby more sustainable. PAS S I O N To that end, we align our reporting With that mission in mind, Aptiv in As a purpose-led company with a with the Global Reporting Initiative 2021 announced aggressive plans to strong track record of meeting our (GRI) and Sustainability Accounting ensure that all of our operations in 44 commitments, Aptiv continues to Standards Board (SASB) standards. countries are 100 percent powered translate our safe, green and connected This year, we have added disclosures by renewable energy by 2030. We mission into actionable initiatives and based on guidance from the Task also expect Aptiv’s entire product evolve them over time as needed. Force on Climate-related Financial portfolio — from source to disposal We have operationalized our 2025 Disclosures (TCFD) that can be found — to be carbon-neutral by 2040. commitments throughout our in a new index at the end of this report. We are making these commitments organization to ensure that we deliver progressive improvements. Learn ABOUT THIS REPORT because we believe that Aptiv’s long-term success as a business more in the Governance and Risk and our ability to create value for Management section of this report. stakeholders are strongly linked to the positive impact our products SUSTAINABILITY GOVERNANCE have on people and the planet. R ECE N T R ECO G N IT I O N 2021 2021 SUSTAINABILITY REPORT 3
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Materiality Analysis A materiality analysis defines the priorities. Our process is aligned with which are detailed in this report under environmental, social and governance current GRI principles and the United 2025 Commitments. Tier-one topics topics that matter most to an Nations’ Sustainable Development encompass the strategic issues material organization and its key stakeholders. Goals to ensure the sustainability to our growth and ongoing success. Aptiv conducted a thorough materiality of our impact and success. We regularly revisit our materiality assessment in 2019, leveraging assessment to ensure that we Our materiality assessment helped us input from independent experts and understand issues of emerging concern refine our sustainability framework internal and external stakeholders for our stakeholders and our business. and identify tier-one and tier-two to identify common concerns and sustainability commitments and targets, Carbon Footprint STRATEGIC Health and Safety Attracting and Retaining the Best Talent Compliance and Regulation IMPORTANCE FOR EXTERNAL STAKEHOLDERS Ethics and Anti-Corruption Product Responsible and Local Sourcing Quality Employee Career Diversity and Inclusion Management Safe Mobility Water Autonomous Vehicles Human Rights in the Supply Chain Waste and Packaging Customer Satisfaction Community Data Security Involvement Education Transport and Logistics Stakeholder Dialogue Governance and Redistribution SIGNIFICANCE OF IMPACT FOR THE COMPANY PEOPLE PRODUCTS PLANET PLATFORM Explanation of boundaries is included in the GRI index for the Material Topic. 2021 SUSTAINABILITY REPORT 4
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Our Sustainability Strategy AT A P T IV, W E S E T A H I G H BA R A N D D O W H AT IS N ECE S SA RY TO M E E T O U R O B J EC TIV E S . We make products and solutions of the highest quality — designed, developed and manufactured responsibly — that transform society by enabling safer, greener and more connected mobility. In doing so, we take care of our people and communities, minimize our impact on the planet and manage our company according to an enduring ethical platform. ALL 2025 COMMITMENTS O U R FR A M EWO R K FO R D E LIV E R I N G O N O U R M IS S I O N M IS S I O N A PPROACH I M PAC T Why we do How we do Our effect what we do business on the world SA FE PEO PLE CUSTOMERS’ A future with Foster healthy, PARTNER OF CHOICE zero accidents inclusive workplaces ENGAGED and communities EMPLOYEES GREEN PRO D U C T S A future with STRONGER zero emissions Design and deliver COMMUNITIES solutions that CO N N EC T E D transform society SAFER VEHICLES A future with PL A N E T GREENER WORLD seamless connectivity Minimize environmental MORE CONNECTED impact MOBILITY PL AT FO R M INCREASED STAKEHOLDER VALUE Do the right things in the right way 2021 SUSTAINABILITY REPORT 5
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Our Strategic Commitments Details of Aptiv’s sustainability initiatives can be found in the 2025 Commitments section of this report. These eight strategic material topics focus on our sustainability pillars: Promote employee health and safety through our strong safety culture and training Advance a culture of diversity and inclusion, improving access to PEO PLE opportunities and ensuring equal pay for equal work within markets Attract and retain the best talent, enhance mentoring and development, and live our values Transform mobility with solutions that are safer, greener and more connected as our customers’ partner of choice PRO D U C T S Design, manufacture and deliver high-quality products using Lean principles that eliminate waste Decrease Aptiv’s carbon footprint by 2025, targeting a 25 percent PL A N E T reduction in our CO2 emissions, market-based, on 2019 baseline Adhere to the most rigorous ethical standards, training all salaried employees in conduct, conflict and anti-corruption PL AT FO R M Conduct ongoing holistic assessments of long-term risks to the company 2021 SUSTAINABILITY REPORT 6
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS PEO PLE Empowering Our People Our mission of transforming mobility begins and ends with people. It takes a talented and highly skilled workforce to design and build products that save lives, reduce society’s impact on the environment and connect vehicles in ways that improve the quality of life for people around the world. Through our culture and our shared passion, we align our employees to this common purpose and encourage collaboration, innovation and contributions from diverse voices. Our people are integral to our progress in building a more sustainable business. We embrace diversity as an engine of innovation, and we vigorously promote healthy, safe workplaces and employee wellbeing. These principles in action were on display during the pandemic — we shut down and restarted more than 220 facilities globally in a matter of weeks, implementing industry-leading protocols to ensure the safety of our teams and deliver for our customers.” M A R I YA T R I C K E T T Senior Vice President and Chief Human Resources Officer S T R AT EG I C CO M M IT M E N T S Be a leader in employee health and safety Advance a culture of diversity and inclusion Attract and retain the best talent ALL 2025 COMMITMENTS 2021 SUSTAINABILITY REPORT 7
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Health and Safety Protecting our employees always has been, and remains, a key priority at Aptiv. We promote the wellbeing of our people and consistently achieve best-in-class safety performance. Our Environmental, Health & Safety Our employees and contractors are well A RO B US T SYS T E M (EHS) teams remain on the front line of trained on employee health and safety. Aptiv’s EHS Operating System helps the battle against COVID-19, where they We routinely assess occupational us protect the health and safety of have been since the virus first emerged. health and safety risks, actively address our global employees by identifying We continue to work closely with issues, and establish targets for lost and mitigating occupational and medical experts, EHS professionals, workday case rates, safety incident environmental risks resulting from our local governments, union leaders, work rates, safety habits training and number activities, products and services, as councils, customers and suppliers of training hours per employee. well as external environmental threats. to ensure that our sites continue These measures help us consistently to operate safely. We make Aptiv’s The operating system is outlined in achieve best-in-class lost workday case COVID-19 Safe Operations Protocols Aptiv’s Environmental, Health and rates compared with industry peers. publicly available, because sharing best Safety Policy. Every Aptiv site meets practices contributes to a safer world. our EHS standards and performs risk assessments on a continuous PROT EC T I N G O U R PEO PLE basis to identify vulnerabilities. Every person working for Aptiv and anyone who enters one of Aptiv’s sites is under our health and safety management system. From defining policies to identifying Aptiv’s mission includes making the world we live in a better place potential risks, we proactively follow — for the people who work here, our families, our communities well-defined processes based on and future generations. We continue to nurture an Environmental, international standards and third- Health & Safety culture of zero harm to our people or to the party certifications. Over the next environment while making a positive impact on the health and five years, all of our manufacturing wellbeing of our employees and society. Actively integrating EHS sites will be certified for ISO 45001. into the way we work on a daily basis is our commitment to our organization, to each other and to the world in which we live.” 40% TA R A O ’ L E A RY Vice President Environment, Health, of our sites to be certified Safety & Sustainability ISO 45001 by 2022 2021 SUSTAINABILITY REPORT 8
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Additionally, our local and corporate EHS teams report, track and review W E A R E A LE A D E R I N WO R K PL ACE SA FE T Y every incident that takes place in our global manufacturing and non- 0.20 manufacturing sites. They perform a “look-across” procedure, which Lost Time Injury Frequency Rate Lost Workday Case Rate (number of cases per million hours worked) (number of cases per 100 employees) allows us to prevent incidents and correct EHS deficiencies across all 0.167 Aptiv sites by learning from incidents 0.10 0.132 0.033 and taking actions to avoid similar 0.027 situations globally. Using an internal online platform, e-Look Across, we have access to all cases reported 0.00 and the respective actions launched. During 2020, we evaluated 92 cases across Aptiv sites globally. 2019 2020 2019 2020 Best in Class Benchmark Best in Class Benchmark Every employee, upon joining the *Lost Time Injury Frequency Rate: 0.3 *Lost Workday Case Rate: 2.9 company, goes through mandatory *U.S. Bureau of Labor Statistics health and safety training, and we recently launched sustainability training aligned to our sustainability framework and 2025 Commitments. O U R COVI D -19 R E S P O N S E Aptiv worked closely with relevant local authorities throughout the pandemic. Local governments in Mexico and Morocco recognized Aptiv for our practices to keep our employees safe during the pandemic. In fact, at the government’s request, we hosted Morocco’s state-owned national TV broadcaster to share Aptiv’s best-practice safety measures. 2021 SUSTAINABILITY REPORT 9
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Our Values Aptiv’s distinct values and behaviors unite our diverse workforce and inform how we select, promote and reward our people. These values represent the foundation of our culture of innovation and execution. We believe in doing the right thing, Aptiv’s mission promotes sustainability to advancing our sustainability efforts the right way — always. We believe by design in everything we do: making through projects to improve their in playing to win while operating with the future of mobility safer, greener sites, communities and the world. respect for others. We believe in and more connected. Our culture We use a variety of channels to moving as one team while thinking and values support that mission by continuously engage with our and acting like owners. And we believe ensuring that we remain focused employees, including quarterly all- in acting with urgency because and diligent in delivering on our employee broadcasts, monthly global we have a passion for results. highest-priority goals the right way. leadership dialogues, regular skip- These are Aptiv’s values, and they level meetings and employee surveys. have served us well. They are the keys LIVI N G O U R VA LU E S In 2020, we shifted to virtual forums to our success. During the pandemic, We see our culture as a distinct and online town halls, increasing we leaned on these values to show advantage and look to magnify the frequency of our outreach to us the way forward during uncertain our strengths to drive operational ensure that we stayed connected with times, as our people rapidly embraced performance, sustainability our teams during the pandemic. new safe operations protocols and performance and employee Our ongoing culture surveys help us adapted seamlessly to new ways of engagement. measure employee engagement, and we working and innovating in the face We encourage local sustainability use them to extract actionable insights. of adversity as a unified team. champions across Aptiv who commit 2021 SUSTAINABILITY REPORT 10
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS O U R R ECE N T E M PLOY E E SU RV E Y More than 80 percent of Aptiv's Responses also described an advance our culture and values. We participating salaried employees enterprise culture with strong clarity are committed to understanding what responded to the 2020 culture survey, of purpose, a relentless customer really matters to our people through reflecting strong participation and focus and a high level of adaptability. ongoing pulse surveys and employee employee engagement, and the roundtables, and to taking site-specific Additionally, through various employee results showed significant progress actions to address their needs. forums and targeted workshops, we in employee motivation, commitment continue to encourage actions that and passion since our 2019 survey. # B E T T E R TO G E T H E R 140,000 Employees* W E LLN E S S & W E LLB E I N G CA M PAI G N Aptiv launched our #BetterTogether awareness campaign to help us all Safely back to the workplace by June 2020 focus on our wellbeing and address *Manufacturing employees and other essential workers the variety of challenges we have experienced over the course of the pandemic. #BetterTogether has been an important initiative as we have adapted to operating in a new environment. TA KI N G CA R E O F O U R PEO PLE D U R I N G COVI D -19 Each week of the 10-week #BetterTogether campaign 88% 90% focused on ways to enhance our of respondents said they felt agreed that Aptiv cared about resiliency, our mindfulness, and our well informed. their safety. physical and financial wellbeing by providing educational interactive Average scores of weekly surveys for on-site employees resources. Topics included: Follow-up in place for any areas of concern raised 1. Resilience: Managing Life’s Challenges 2. Stress and Anxiety: Calming Your Mind 3. Embracing Change 4. The Health Benefits of Mindfulness 5. Empathy and Self-Compassion 6. What Works When Working Remote 7. Physical Wellbeing 8. Financial Wellbeing 9. Eating for a Healthy Mind and Body 10. Thriving in a New Normal 2021 SUSTAINABILITY REPORT 11
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Diversity and Inclusion Aptiv fosters a culture of respect and inclusive collaboration. We know through experience that more voices and varied perspectives make us better innovators and better partners to our many customers around the world. We are committed to the principles of equal opportunity, equal pay for equal work within markets, diversity and inclusion. Aptiv provides equal opportunities annually, and our Compensation and personal and professional growth. In for all applicants and employees, Human Resources Committee reviews 2020, we expanded our mentoring regardless of race, ethnicity, age, employee retention, attrition and program to further develop talent gender, religion, sexual orientation pay equity on an ongoing basis. within Aptiv, increase engagement and other diverse backgrounds. and retention, and provide ongoing Our key diversity and inclusion support and encouragement. In 2021, We continue to advance diversity across initiatives span people, workplaces, we are focused on increasing the Aptiv, ensuring the representation of markets and communities. number of women in leadership roles women and minorities in our workforce, mentored by senior executives. including leadership and technical roles. PEOPLE We also know there is more to be done. TA LE N T D E V E LO PM E N T ATTRACTING & RETAINING To that end, our Board of Directors THE BEST TALENT At Aptiv, we know the importance of reviews Aptiv’s talent evolution, mentorship and the role it plays in inclusion and diversity efforts O U R A PPROACH A N D K E Y I N IT IAT IV E S Diversity and Inclusion PEOPLE WORKPLACE Attract and retain talent that looks to thrive Foster a safe and healthy environment where in a culture of excellence and innovation backgrounds, perspectives and experiences are valued • Talent Development • Culture of Inclusion • Target Recruiting • Employee-Led Communities • Pay Equity Analysis MARKETS COMMUNITY Build a reputation as a partner of choice Take care of our communities and elevate the and encourage diversity in the supply chain next generation • Supplier Diversity Program • STEM Education • Women in Engineering 2021 SUSTAINABILITY REPORT 12
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS TA RG E T E D R ECRU IT I N G MARKETS SU PPLI E R D IV E RS IT Y WO R KI N G CA R EG IV E R We partner with various recruitment G RO U P organizations to build deep and We continue our long-standing global diverse talent pools at all levels of support of supplier diversity. This Our recently established the organization. This effort includes includes participating in many major Working Caregiver group has partnerships with universities around national supplier organizations. Aptiv is been well received. Caregivers the world: the AGH University of a member of the Asian Pacific American have faced unique and rising Science and Technology, Carnegie Chamber of Commerce (APACC), the challenges because of the Mellon University, the Karlsruhe National Minority Supplier Diversity pandemic. Women have borne Institute of Technology, Massachusetts Council (NMSDC), the National Veteran the brunt of pandemic-related Institute of Technology, the National Business Development Council burdens, with four times as many University of Singapore, North (NVBDC) and the Women’s Business women as men dropping out Carolina Agricultural and Technical Enterprise National Council (WBENC). of the workforce to meet the State University, RWTH Aachen These organizations help us identify demands of child care, remote University, the University of Michigan, suppliers and verify their certifications, schooling, or caring for elderly Xi’an Jiaotong University, and supporting our continuing efforts or sick relatives. Group members Zhejiang University. In 2020, the for diversity and inclusion. have told us that having a peer Aptiv Foundation contributed to group dedicated to extending scholarships at our university partners. In the United States, we have more support, problem-solving than 100 diverse suppliers, both and providing much-needed direct and indirect. We have identified empathy has helped lighten that PAY EQ U IT Y A N A LYS IS diverse suppliers as a focus area and load. All of our employee-led Aptiv is committed to providing equal are targeting 10 percent of eligible communities have intensified opportunities for all applicants and spend in North America to supplier their support during this crisis. employees. Our employment policies businesses owned by minorities, and practices prohibit employment women and veterans. decisions, including compensation decisions, based on protected COMMUNITY D IV E RS IT Y I N N U M B E RS characteristics such as gender or race. S T E M E D U CAT I O N / WO M E N I N To help identify and close gaps, ENGINEERING we conduct pay equity studies on gender globally and on race in the Aptiv is a longtime supporter of 49% Female education in science, technology, United States. Our next recurring engineering and math (STEM) around 22% in management comprehensive pay equity study the world — providing team mentors is scheduled for mid-2021. 19% in technical roles to high school students, donating funds to support 25 FIRST Robotics Global workforce Our remuneration programs and pay decisions are designed to ensure Competition teams and granting sponsorships to Greenlight for Girls. equal pay for equal work within markets for the same job, market We play an active role with the Society 40% Minority* competitiveness and performance. of Women Engineers, particularly in racial equality programs that target 21% in management underprivileged communities, and we 44% in technical roles WORKPLACE regularly hold Women in Engineering E M PLOY E E- LE D CO M M U N IT I E S events focused on increasing U.S. workforce (E LC) diversity and supporting the career *Minority: As defined by the U.S. Equal Employee-led communities (ELCs) progression of women at Aptiv. Employment Opportunity Commission foster a diverse and inclusive workplace In 2021, we are establishing an and increase employee engagement. apprenticeship program in the United For example, we have a thriving Women States that supports underprivileged in Technology group in Germany. To add youth and expands our talent support and structure to the ELCs, we pipeline beyond university graduates. are assigning executive sponsors to This is a two-year project-based each group who can bring more visibility apprenticeship for competencies in to the communities and their initiatives. demand, such as software testing and architecture, application programming interfaces, cybersecurity, AUTOSAR and technician activities. 2021 SUSTAINABILITY REPORT 13
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Attracting and Retaining the Best Talent Aptiv’s culture of innovation and shared values attracts top talent, and that is a legacy we defend and extend. We want the best of the best to join and stay with us. Increasingly, sustainability plays a part in why people choose Aptiv. Today’s recruits want to work for a company they can feel good about — building a better future not just for themselves but for their communities and beyond. People join Aptiv to change the world. PR I O R IT I Z I N G T H E E M PLOY E E E X PE R I E N CE Recognizing that attracting the best talent is a cornerstone of our sustainability commitments, we launched a new Aptiv Careers website that provides an immersive, content- rich platform for the workforce of our future and emphasizes our core values in our recruiting communications. This effort is continuing to evolve in 2021. For current employees, Aptiv invests in training and development curricula to help them continue to succeed in their careers. These programs align with our culture and values and include various leadership and unconscious- bias training for our managers. 2021 SUSTAINABILITY REPORT 14
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS LE A D E RS What attracted me to Aptiv How We Nurture Our Culture was the commitment to Supervisors, managers and executives lead our people through sustainability. The YouTube the employee lifecycle using the ENGAGE-LEAD-DEVELOP videos were great, and the model. These three imperatives are the cornerstone for effective webpage design very clean, leadership across Aptiv as we help our employees thrive. clear and professional — among the best experiences I’ve seen. ENGAGE Appreciate and empathize with each employee But the kicker was Aptiv’s commitment to building a more sustainable world.” LEAD Lead from the front and stay conscious of one’s “leadership shadow” K L AY T O N KO WA L S K I Software Developer DEVELOP Provide just-in-time feedback to grow and nurture our people’s careers ENGAGE LEAD Performance Feedback Reviews Building Strong Engagement Driving Performance and We provide employees with the Personal Excellence opportunity to receive frequent The leadership team holds monthly town halls for all employees, sharing We share annual and long-term performance feedback. Throughout our strategies, business updates, company goals with employees and the year, salaried employees discuss achievements and challenges. We ask everyone to develop his or her own goal alignment, performance, and also foster an open dialogue and goals, in alignment with the business. career development with their solicit direct employee feedback We encourage our people to focus managers. These reviews evaluate using on-site roundtables, CEO on impact, not on activities, and to each employee’s strengths, skills roundtables with employees throughout reflect our values in their behavior. and areas for opportunity, which are the year, online social networking important for career development forums, surveys and more. and Aptiv’s talent management. 2021 SUSTAINABILITY REPORT 15
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Leadership Development at Aptiv LEADERSHIP LEADERSHIP DEVELOPMENT PROGRAM FIRST-LINE LEADING THROUGH MANAGEMENT MANAGER PROGRAMS CULTURE WORKSHOP PLANT MANAGER TECHNICAL FUNCTIONAL/SPECIALTY LEADERSHIP ACADEMY CAREER PATH APTIV Trainings include Professional & Skill ALL APTIV EMPLOYEES ACADEMY Enhancement, and Ethics & Compliance courses DEVELOP First-Line Managers Programs Leadership Development Program Aptiv Academy We believe that first-line managers This nine-month leadership We take a purposeful approach to are key to ensuring that employees development program focuses on investing in our employees’ careers and continue to develop and stay engaged. the critical competencies needed to personal growth. Our online learning This program provides managers with reinforce our strong and empowered management system is available to the tools to achieve those goals. team, create a stronger business impact all employees and provides access to and build a leadership community. The program consists of two chapters: many interactive online training courses and external in-person sessions. 36,000+ total hours of Leadership Foundation leadership and management 410,000 courses This program focuses on developing training completed in 2020 completed in 2020 leaders in the early stages of their leadership roles. It reinforces key values Plant Manager Leadership Academy and behaviors, with a “learning to lead” emphasis — moving from managing This program builds skills for plant oneself to managing others and teams. managers across the enterprise, 2020 was a severe VUCA reinforcing our values to create high-performing operations. License-to-Lead Program [volatility, uncertainty, This four-day development program complexity and ambiguity] Technical Career Path for more experienced managers year! We should all be very focuses on building a strong and thankful, as we were mentally Aptiv offers employees tuition engaged first-line management prepared for such a crazy time. reimbursement for various educational layer to drive performance and What we learned was that it opportunities. We partner with engagement and build a strong global numerous universities to provide is crucial to keep our people infrastructure for leadership at Aptiv. ongoing education opportunities for connected and motivated, for employees, including the University the best of Aptiv but also for of Michigan’s Integrative Systems Leading Through Culture Workshop the best of our people. Thanks + Design program and a custom Our two-day workshop focuses on again for that.” curriculum on systems engineering. living our values and encouraging JEROME COUDRE behaviors that promote those values throughout our leadership team. Business Unit Director – Advanced Safety 2021 SUSTAINABILITY REPORT 16
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Community Aptiv is about action — we turn challenges into solutions and put sustainability in motion. Action also defines our approach to community. As we look to make the world safer, greener and more connected, we also take actions to strengthen the many communities around the Providing both the brain and nervous world that we call home, through system, Aptiv is uniquely positioned to direct social investments and by enable the future of mobility. Driving it supporting employee-led efforts. all is our passion for improving people’s lives. There is heart at our core — the A P TIV CA R I N G ALDO GOMEZ beat that creates the connections from Director of Global Aptiv Caring is our community person to person, from point to point, Environmental, Health involvement program focused on from idea to innovation. The people and Safety making a real and significant impact of Aptiv care. So there it is: brain, on three issues aligned with our nervous system, heart. I sketched that mission: road safety, reforestation on a Post-it, and one of our graphic Aptiv and girls in technology. designers turned it into the Aptiv CARING Caring icon we use today.” O U R COVI D -19 R E S P O N S E Donations with Impact In 2020, the Aptiv Foundation made a $500,000 donation to the GlobalGiving fund to help some of the most vulnerable communities around the world respond to the pandemic. This year, the foundation donated an additional $50,000 to the India COVID-19 relief fund for lifesaving medical supplies and essential items for frontline workers. 2021 SUSTAINABILITY REPORT 17
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS A P TIV FO U N DAT I O N Established in 1999, the Aptiv At the 10th China Charity Festival, Aptiv China won Foundation is an independent nonprofit organization that helps 2020 Responsible Brand of the Year communities in which Aptiv operates around the world. In addition to making contributions to promote road safety and reforestation, the foundation The Aptiv team donated 185 seeks to connect and support women, computers to the students at minorities and diverse communities, Loyola High School in Detroit, primarily through education in STEM. Mich., helping to further support In 2020, the foundation supported FI RS T their academic achievements. numerous organizations, including GlobalGiving, Greenlight for Girls, Through this mentoring FIRST, Code2College, Winning program involving robotics team Futures, and Girls on the Run. competitions, the foundation helps students from ages 9 to 18 develop skills as future engineers and technologists. Of recent participants, half identify as minorities and a third are young women. 2021 SUSTAINABILITY REPORT 18
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS PRO D U C T S Transforming Mobility Sustainability is integral to the safe, green and connected products we create and the way we conduct business all around the world — from how we collaborate with customers on next-generation solutions to how we procure equipment and supplies and manage risk along our global and local supply chains. While many aspects of our work and our lives have changed over the last year, there is one thing that remains constant: our relentless focus on innovation. We deliver technologies that address our customers’ toughest challenges with solutions that save lives, improve the planet and make us more connected.” G L E N D E VO S Senior Vice President and Chief Technology Officer S T R AT EG I C CO M M IT M E N T S Transform mobility with solutions that are safe, green and connected Design, manufacture and deliver high-quality products ALL 2025 COMMITMENTS 2021 SUSTAINABILITY REPORT 19
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Partner of Choice We seek to be our customers' partner of choice in transformative mobility solutions. From design through delivery, the quality of our customers’ experience is paramount. Account leads and teams from quality E N G I N E E R I N G A N D PRO CES S ship our products, as well as better control, engineering and sales work I N N OVAT I O N ways to work. And to ensure that we alongside customers to ensure that we get access to the best ideas to solve Innovation is not as simple as fully understand their requirements, tough challenges, our engineers coming up with new product ideas. communicate them clearly throughout collaborate and innovate beyond our To bring ideas to life, we empower the organization and deliver on them. walls, engaging with OEMs, suppliers, our people to come up with better Our engineering teams work closely with universities and technology partners. ways to manufacture, assemble and customer engineering teams through a robust product development process. A P TIV I M PAC T As we move toward achieving carbon neutrality by 2040, we continue to innovate in vehicle energy efficiency and in electrification. Our OEM customers value our proven ability to find smarter ways to reduce vehicle weight, with products that deliver superior performance while using fewer resources, less energy and less space. Reducing weight reduces emissions: The lighter the vehicle, the less fuel and power it uses, and that means a smaller carbon footprint for each vehicle and each fleet. 2021 SUSTAINABILITY REPORT 20
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Safe, Green, Connected Innovative Solutions Our advanced safety solutions protect drivers, passengers and other road users. Our electrification solutions lower the carbon footprint of the vehicles our customers bring to the world. And our connectivity solutions enable new user experiences and business models. I N N OVAT I O N S W IT H I M PAC T Satellite Architecture Next-Gen ADAS Software Platform SAFE OEMs are rolling out platforms today that use Aptiv’s platform for developing advanced safety Aptiv's Satellite Architecture to centralize features and highly automated vehicles will lower compute power for sensors, reduce weight and total cost of ownership through next-generation increase flexibility. This approach provides higher perception systems, scalability across platforms levels of active safety by enabling advanced and upgradeability over the vehicle lifecycle. sensor fusion and democratizes advanced safety systems by lowering costs. Optimization of Low-Voltage Wiring High-Voltage Solutions GREEN Aptiv helps leading OEMs optimize their vehicle Our new family of high-voltage interconnects architectures’ low-voltage wiring. Zone controllers supports the demanding requirements of and smart fusing allow OEMs to use smaller electrification. They are purpose-built for and lighter power lines. Zone controllers also architectures that accommodate larger battery consolidate data from different sensors onto packs, faster charging and the increasing fewer data lines — reducing weight and lowering demands of traction motor systems — all while total system costs. maintaining peak performance throughout the life of the vehicle. Interior Sensing for In-Cabin UX OTA Software Updates CO N N EC T E D Our open platforms for the in-cabin user Aptiv has enabled over-the-air (OTA) updates experience enable seamless access to digital across our platform solutions, allowing OEMs to consumer ecosystems. They can host a full suite add and upgrade features and functions over the of applications, including our interior sensing life of a vehicle. This significantly reduces total solutions, which are evolving from basic driver cost of ownership and clears the way for new monitoring for safety to more sophisticated business models. comfort and convenience functionality. 2021 SUSTAINABILITY REPORT 21
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Operational Execution Building the technologies and solutions that will shape the future of mobility requires a systematic focus on quality and execution. Q UA LIT Y A N D LE A N We are reinvigorating Lean principles E V E RY DAY across our enterprise in an initiative we call Lean 2.0. Lean 2.0 has been instrumental in transforming our 90+
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS D I G IT I Z AT I O N A N D HoloLens 2 and Teams. Applications AU TO M AT I O N I N N OVAT I O N include Lean maturity assessments, With VR, Aptiv can implementation of safe-start protocols, Aptiv continues to make progress safety observations, value-stream reduce in-person in manufacturing automation, which training from mapping and customer approvals. has led to recent improvements 2 days to We are also exploring virtual reality in our proprietary methods of (VR) with Oculus and The Leadership producing wiring harnesses. Network to enable the rollout of Separately, the pandemic prompted us to look for more efficient ways to compelling training at scale, in a controlled and cost-effective way, that enables real-time collaboration. 4 hours collaborate from different locations. We have accelerated our move toward while eliminating the cost augmented-reality work environments and carbon impact of and increased our use of Microsoft travel LE A N I M PAC T – D R IVI N G PRO D U C T IVIT Y A N D S PA R KI N G I D E AS I N O U R AS&UX B US I N E S S PRODUCTIVITY KAIZEN IDEAS 30% 60k 55k 12.4% 1% 7.2% 30k 1.6% 2.5k 0k 0% 0k 2018 2019 2020 2018 2019 2020 O U R COVI D -19 R E S P O N S E Lean Gemba Part of Lean manufacturing is the concept of gemba, a Japanese word meaning “the place where it happens” — or, in manufacturing terms, the shop floor — and the necessity of management by walking around and seeing operations firsthand. The pandemic led us to develop innovative ways to practice gemba remotely using Microsoft HoloLens technology. We also converted many of our established training modules into VR sessions. 2021 SUSTAINABILITY REPORT 23
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Sustainability in our Supply Chain Sustainability is a key element of our strategy for supply chain resiliency. We continue to drive Lean methodology and localized sourcing across the business where possible while we increase our use of recyclable and sustainable materials. The pandemic reinforced the value of supply chain resiliency as we flexed and adapted to volatile changes in supply and demand. We continue to use value- We have rapidly evolved away from a cost and compliance stream mapping and data science to perspective on sustainability in our sourcing to something far more better determine the weak points in our powerful: a focus on sustainable performance, evidence-based, as supply network and position ourselves a competitive advantage. We’re more aligned with our key suppliers to respond with urgency and foresight. on the opportunities that sustainability creates. It’s brilliant. This is We are also training suppliers on the what our customers want and what our people want.” importance of sustainability. The Aptiv Sustainability Training program F E R GA L P O W E R communicates our sustainability Vice President, targets and sets expectations for how Indirect Sourcing and Global Real Estate suppliers will be measured. More than 300 direct suppliers are expected to complete the training this year. E M PLOY E E S P OT LI G H T Manuel’s department ensures that trailers are fully utilized, reducing emissions and fuel use. For example, when a plant requests 10 trucks to transport goods to a customer plant, Manuel may find that the request would use just 75 percent of the overall carrying capacity of the trucks and recommends eliminating two trucks. In this way, Manuel and his team eliminated 2,894 truck M A N U E L M A R R U FO runs in 2020, benefiting both Aptiv and the environment. Logistics Manager 2021 SUSTAINABILITY REPORT 24
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Data Security We build cybersecurity into every step of the product development lifecycle — not as a bolt-on but as an integral part of the process. Through rigorous penetration CY B E RS ECU R IT Y L A B testing, Aptiv proactively identifies Aptiv’s cybersecurity resources include digital interference. Within the lab, we security gaps or vulnerabilities in our a lab at our Troy Technical Center that can subject our products and solutions products to prevent malefactors from features one of the largest Faraday to intense digital assault, allowing disrupting our mobility technologies. cages in private industry, creating a us to test advanced technologies We further track components in a work environment impervious to outside in a controlled environment. software bill of materials for future vulnerability management and response post-production. Aptiv's security researchers, drawn from the government, leading tech companies and elsewhere, work closely with our product engineers to ensure that we Our team includes physicists, engineers, hackers, provide digitally secure products. and criminal justice and forensic specialists, all monitoring and testing for digital vulnerabilities. The work is compelling — keeping mobility safe, monitoring the dark web — and we get to work on K R I S T I E PFO S I the leading edge.” Director of Cybersecurity O U R COVI D -19 R E S P O N S E Data Security Shifting more than 20,000 employees to working from home changed the way employees consume Aptiv data. Suddenly and quickly, our IT operations and security teams had to work together to overcome new stresses on the network and data infrastructure. By adopting a cloud-based solution, Aptiv was able to quickly deliver a scalable service to our employees to allow them to work remotely while still connecting in a secure and controlled environment to Aptiv data and applications, both in the cloud and on our internal network. 2021 SUSTAINABILITY REPORT 25
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS PL A N E T Sustaining Our World We design solutions that help transition the world’s vehicles to cleaner sources of power. But we also have committed to dramatically reducing our own environmental footprint throughout our operations around the globe. We pursue efficiency in everything we do to reduce consumption of materials and energy. Aptiv is aligned to our customers’ sustainability commitments. We actively partner with them in their journey to carbon neutrality, where our products, the materials we use, the design and the way the products are manufactured have a direct impact on meeting their goals. Sustainability is integral to who we are and what we do. We are operationalizing our beliefs and commitments and living them daily.” PA S Q UA L E A B R U Z Z E S E Vice President, Global Manufacturing S T R AT EG I C CO M M IT M E N T S Decrease Aptiv’s carbon footprint ALL 2025 COMMITMENTS 2021 SUSTAINABILITY REPORT 26
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Climate Change and Our Carbon Footprint Aptiv has committed to becoming carbon-neutral by 2040 — 10 years earlier than our previous target. Around the globe, we are aggressively transitioning away from carbon-intensive energy. Our current effort is to reduce CO2 Key to achieving these goals is our Another critical part of reaching our emissions by 25 percent across our global EHS management system, goal of carbon neutrality is to have global operations by 2025. The next which keeps us aligned with the robust and reliable data. In 2021, step is to continue to reduce the most stringent EHS regulations and we are performing a pre-assurance carbon footprint of our operations provides a structure for continuous process on our greenhouse gas through electricity savings projects, improvement. This system applies emissions with outside consultants optimizing machine power consumption, to all Aptiv sites, meaning that in in preparation for the assurance and sourcing 100 percent of the some countries our procedures process that will take place in 2022. electricity for our operations from go beyond local regulations and renewable sources by 2030. requirements. We continuously update this system to ensure that our procedures are up to date. USAG E O F G R E E N H O US E GAS ABSOLUTE INTENSITY Scope 1 & 2 Emissions* Scope 3 Emissions* Scope 1 & 2 Emissions* (tons of CO2e) (million tons of CO2e) (kgCO2e / employee) 500,000 8.5 8.3 2.5 2.19 400,000 2.0 1.96 357,546 7.3 322,870 7.0 300,000 1.5 200,000 1 .4 100,000 0.5 0 0 0 2019 2020 2019 2020 2019 2020 *Scope 1 & 2 reflect market-based emissions 2021 SUSTAINABILITY REPORT 27
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS We also have partnered with a To reach our carbon-neutrality goal, R E A L-T I M E E N E RGY consulting firm to assess the renewable we have started the process of CO N SU M P TI O N energy market globally. This will help us aligning and certifying our two most M O N ITO R I N G find the best options to source green energy-intensive sites, one in the electricity in our various markets. United States and one in China, to Multiple teams at our sites in the ISO 50001 standard. In 2022, two Morocco and Germany have more sites will go through the same implemented real-time energy “By 2025, we intend to have process. By 2025, we intend to have consumption monitoring. This our top 10 most energy-intensive technology has allowed us to our top 10 most energy- sites certified to this high standard. reduce energy consumption and intensive sites certified to is serving as a model for our the ISO 50001 standard.” path toward carbon neutrality. 2021 SUSTAINABILITY REPORT 28
APTIV’S ROAD TO OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS CARBON NEUTRALITY ROA D M A P TO CA R B O N N EU T R A LIT Y We have mapped out and committed to an ambitious plan to COcarbon-neutral become MMITME NTS A L IGN ED TO M I SSI O N by 2040. O F ENABLI N G A M ORE SUSTA IN ABLE F U TU R E O F M O BI LI TY 2025 REDUCE CARBON EMISSIONS BY 25% Decrease Scope 1 & 2 CO2 Emissions 2030 CARBON-NEUTRAL OPERATIONS Source 100% Renewable Energy Globally 2039 CARBON-NEUTRAL PRODUCTS From Sourcing to Disposal 2040 CARBON-NEUTRAL COMPANY 2021 SUSTAINABILITY REPORT 29
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Water, Waste and Materials In addition to fighting climate change by reducing emissions, we are committed to reducing waste, consuming less water and using less materials in our operations. While Aptiv's operations are not with best practices in lower-risk targets and goals, indicating that the water intensive, we include water into areas. We have been completing task ahead is mainly one of execution. our environmental risk management CDP’s water module since 2013 and In addition, we have included this approach as well as our Environmental, most recently received a B rating in water scarcity assessment into our Health and Safety Policy. We identify water security. This puts us ahead of real estate strategy so we can avoid areas where we operate that are water- many peers but is a rating we intend acquiring a site located in such areas. scarce and take action to reduce our to improve upon. Among the many water consumption accordingly while factors evaluated, we scored highly on also meeting high levels of compliance water policies, business impacts, and WAT E R USAG E ABSOLUTE INTENSITY Water consumption, in millions of liters Water consumption, in thousands of liters per employee 2,000 1,916 1,900 12 11.75 10.33 10 1% 8 12% reduction reduction in in total consumption 1,000 6 consumption per employee 4 1,127 1,055 2 0 0 2019 2020 2019 2020 Consumption total Consumption in water-scarce areas 2021 SUSTAINABILITY REPORT 30
OVERVIEW PEOPLE PRODUCTS PLANET PLATFORM 2025 COMMITMENTS Aptiv is committed to reducing waste, with a waste diversion WAS T E target (volume of recycled waste / total waste volume) of 80 percent. We met this target in 2020. WASTE GENERATION We continue to actively reduce and 1,000 metric tons, diversion rate % properly manage waste across our manufacturing operations, as well as in our office facilities. We are creating 80,000 packaging that uses less materials, 71.0 68.9 and we continue to increase the share of waste and excess materials we divert to recycling. We are 60,000 50.8 implementing simpler measures as well, such as moving away from plastic cups and bottles in our offices. 40,000 As a result of the global pandemic, our waste generation increased in 20,000 81% 77% 81% 2020. This was due primarily to the disposable items (personal protective equipment such as masks, gloves 0 and hand sanitizer) needed as part of our COVID-19 Safe Operations 2018 2019 2020 Protocols, which may affect our 2021 performance as well. Non-Recycled Waste Recycled Waste 2021 SUSTAINABILITY REPORT 31
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