SUSTAINABILITY Report
2020
Photo: Luke Oslizlo
CONTENTS
- ABOUT THIS REPORT
- CEO LETTER
- ABOUT IOCHPE-MAXION
- BUSINESS RESILIENCE
- INNOVATION AND DIGITAL TRANSFORMATION
- CORPORATE GOVERNANCE AND ETHICS
- PRODUCT QUALITY AND SAFETY
- CLIMATE CHANGE AND ENVIRONMENTAL FOOTPRINT
- ORGANIZATION CULTURE AND PEOPLE MANAGEMENT
ABOUT | CEO | ABOUT | BUSINESS | INNOVATION AND | CORPORATE GOVERNANCE | PRODUCT QUALITY | CLIMATE CHANGE AND | ORGANIZATION CULTURE |
THIS REPORT | LETTER | IOCHPE-MAXION | RESILIENCE | DIGITAL TRANSFORMATION | AND ETHICS | AND SAFETY | ENVIRONMENTAL FOOTPRINT | AND PEOPLE MANAGEMENT |
This report was developed by Iochpe-Maxion and covers the Company's environmental, social and governance (ESG)
structure and performance between January 1, 2020 and December 31, 2020, unless noted otherwise.
In this report, Iochpe-Maxion, "we," "our" or "the Company," refers to the company globally, while Maxion Wheels and Maxion Structural Components refers to the Company's divisions.
The structure and content of this report was developed in alignment with the Global Reporting Initiative (GRI) Standards Core Option, the United Nations Sustainable Development Goals (SDGs) and the Sustainability Accounting Standards Board's (SASB) material issues for the Auto Parts sector.
MATERIAL TOPICS
The content of this report is defined based on the Company's and its stakeholders' material topics.This report discloses Iochpe-Maxion'smanagement approach, along with a set of the indicators monitored for each material topic.
The Company identified its material topics in 2019 by reviewing internal documents; interviewing senior leadership, Company officers, managers and investors; conducting peer benchmarks; and assessing sector reports and guidelines (i.e. 2019 Sustainability Development Yearbook, Auto Components; The Sustainable Development Framework: International Council on Mining & Metals (ICMM) Principles; Automated Industry Action Group; The Aluminum Association (USA); and European Aluminum).
In 2021, the Company revised its 2019 materiality results to include the SASB's material issues for auto parts sector, the Morgan Stanley Capital International (MSCI) material topics for the sector and relevant aspects from the Task Force on Climate-Related Financial Disclosure (TCFD). The findings were presented and discussed in a meeting with subject matter experts from each division. The final material topics that guide this report are presented below.
List of material topics GRI 102-47 | |||
MATERIAL TOPICS | SCOPE (Description) | ||
HEALTH & SAFETY (H&S) | Asset protection and risk management | ||
Occupational health and safety | |||
PRODUCT QUALITY AND SAFETY | Product safety, quality and efficiency | ||
Client satisfaction | |||
CLIMATE CHANGE | Carbon footprint | ||
AND ENVIRONMENTAL | Water | ||
FOOTPRINT | Energy | ||
Materials, circular economy | |||
Waste | |||
ORGANIZATIONAL CULTURE | Promoting Company culture | ||
AND PEOPLE MANAGEMENT | Talent retention | ||
Employee engagement | |||
Inclusion and diversity | |||
Developing career, training and education | |||
Future of work | |||
INNOVATION & DIGITAL TRANSFORMATION | Research and development | ||
Digitalization | |||
Artificial intelligence | |||
New vehicles model | |||
Innovative solutions | |||
Partnership with other institutions | |||
CORPORATE GOVERNANCE AND ETHICS | Business ethics | ||
Integrity and anti-corruption | |||
BUSINESS RESILIENCE | COVID-19 | ||
Business continuity | |||
Employee H&S | |||
4 SUSTAINABILITY Report 2020
ABOUT | CEO | ABOUT | BUSINESS | INNOVATION AND | CORPORATE GOVERNANCE | PRODUCT QUALITY | CLIMATE CHANGE AND | ORGANIZATION CULTURE |
THIS REPORT | LETTER | IOCHPE-MAXION | RESILIENCE | DIGITAL TRANSFORMATION | AND ETHICS | AND SAFETY | ENVIRONMENTAL FOOTPRINT | AND PEOPLE MANAGEMENT |
CEO | The year of 2020 will always be |
LETTER | remembered for the impacts of the |
coronavirus pandemic. |
Since the beginning of the COVID-19 pandemic, our priority has been to take care of the health and safety of our employees, their families and the 32 communities in which our plants operate, in 14 countries. We remain attentive to the pandemic and continue to strengthen our procedures to increase and ensure the safety of our employees and the continuity of our business.
In order to safeguard the health of all employees and their families, and fight the spread of the virus, we followed authority and agency guidelines in each location where we operate. Since the beginning of the pandemic, the Company established frequent leadership for discussion and learning of health and safety best practices, and how to implement them effectively throughout the Company while considering the singularities of each location. We monitor our facilities on a daily basis to adapt our activities to the volume demanded by our customers-meeting their expectations responsibly.
Beyond the basic measures, such as social distancing and masks, we implemented quarantine protocols for employees who had contact with someone infected. We evaluated successes and adopted new measures such as reducing working hours and collective and/or selective vacations. Additionally, domestic and international travel was cancelled; face-to-face meetings were replaced with videoconferences; third-party access to the Company's units was restricted; and the work
regime was adjusted to avoid the assembly of people as much as possible.
In light of the challenges posed by the pandemic, we focused on financial and operational management with the goal of preserving liquidity and recovering operating margins. In 2020, despite the drop in global automotive production of more than 20.0% and the net loss of R$ 491.8 million, our net operating revenue grew 21.8% in the 4th quarter of 2020, supported by the recovery of the markets where we operate and positively influenced by the exchange rate variation.
Despite the recovery in industry volumes in the second semester of 2020, the Company continued its efforts to reduce costs and maximize cash generation, including the closure of the Akron plant in the United States.
Regardless of the sector scenario, we remain focused on productivity gains and operational efficiency, launching new programs in 2020, strengthening
our balance sheet, producing new products in our advanced engineering and promoting continuous digital transformation and innovation to keep adding value to our products.
Our Company holds a high level of technical knowledge, and permanently seeks to provide innovative solutions in the areas it operates, using global macro-trends that guide the development of new products, technologies and processes, whether independently or in cooperation with strategic partners.
During 2020, we increased our participation in new mobility by winning business in wheels and structural components for electric vehicles, with both large
automakers and newcomers in the automotive sector. And overall, our two divisions maintained their new business trends demonstrating the confidence our customers have in the quality of our products, and in our ability to meet their immediate and future needs with competitive and technologically innovative products and solutions.
I would also like to acknowledge what our plant teams accomplished during this very dynamic and challenging year. In spite of all the challenges imposed by COVID-19, our teams remained committed to meeting our customers' expectations and living our core values, while not sacrificing safety and sustainability. We are proud of our teams, and applaud their outstanding performance.
Marcos
Oliveira
President
and CEO
5 SUSTAINABILITY Report 2020
ABOUT | CEO | ABOUT | BUSINESS | INNOVATION AND | CORPORATE GOVERNANCE | PRODUCT QUALITY | CLIMATE CHANGE AND | ORGANIZATION CULTURE |
THIS REPORT | LETTER | IOCHPE-MAXION | RESILIENCE | DIGITAL TRANSFORMATION | AND ETHICS | AND SAFETY | ENVIRONMENTAL FOOTPRINT | AND PEOPLE MANAGEMENT |
ABOUT IOCHPE- MAXION
GRI 102-2,102-3,102-4,102-6,102-7,102-9
Iochpe-Maxion is an international company, leading globally in the production
of automotive wheels and in the Americas for the production of automotive
2009
Acquisition of the
Wheels Division
of ArvinMeritor.
2008 Single class of shares - Novo Mercado
BM&FBOVESPA.
2018 |
Iochpe-Maxion |
celebrates 100 |
structural components. Headquartered in São Paulo, Brazil, we employ approximately 15,000 people across our 32 manufacturing plants in the 14 countries in which we operate. As a result of our international reach, we are equipped to serve our global customers according to their delivery terms, quality standards and competitiveness requirements.
Iochpe Family started in 1918 as a lumbering company in the State of Rio Grande do Sul.
Over the years, our activities expanded to the financial sector, and subsequently, to the industrial sector.
1984 | ||
1918 | Listed on | |
BM&FBOVESPA. | ||
Origin of the | ||
Company | 1990 | |
Lumbering | ||
Activities. | 1980 |
1940
1900
1940
Diversification of Activities (financial and industrial sectors).
Geographic diversification (Industrial plant in China).
Early 2000's Creation of Amsted Maxion for the railway equipment business.
2010
2000
90's
Focus on auto parts and railway equipment.
2012 | years. | |||
Acquisition of | ||||
Hayes Lemmerz | ||||
(Wheels). | ||||
Acquisiton of | ||||
Grupo Galaz | ||||
(side rails for | 2019 | |||
commercial | ||||
vehicles). | 2018 | |||
2017 | ||||
2012 | 2017 | |||
Equity increase | ||||
2010 | through capital | |||
injection and debt | ||||
Acquisition of | ||||
conversion. | ||||
wheel assets | ||||
from Nugar in | ||||
Mexico. | ||||
2011 | ||||
Acquisition of | ||||
Montich (50%) | ||||
(Chassis - | ||||
Argentina). |
2019 Partnership with Dongfeng in China (Construction of aluminum wheels plant).
In the 1990s, the Company began focusing on auto parts and railway equipment segments, with the disposal of a major portion of assets and equity interest not linked to these segments. In early 2000, 50% of our railway equipment business was transferred to Amsted Industries, which established the joint venture Amsted Maxion.
In January 2008, the Company converted the preferred shares into common shares to enter the Novo Mercado trading segment of B3 (prior BM&F BOVESPA), the São Paulo Stock Exchange.
In August 2009, the Company purchased the wheels business from ArvinMeritor in Brazil, Mexico and the United States.
In December 2010, the Company purchased assets of the wheels business from Nugar S.A.P.I. de C.V., a Mexican company controlled by the CIE Automotive group, to increase their production capacity in Mexico.
In May 2011, the Company acquired 50% of shares of Montich S.A., an Argentine manufacturer of side rails and chassis. As part of this acquisition, Montich S.A. changed its name to Maxion Montich S.A.
In early 2012, the Company acquired the Galaz Group, a Mexican manufacturer of side rails for commercial vehicles, and Hayes Lemmerz, a US global manufacturer of steel wheels for light and commercial vehicles and aluminum automotive wheels for light vehicles.
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Iochpe-Maxion SA published this content on 23 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 November 2021 21:29:14 UTC.