São Paulo, BRAZIL – April 27, 2022 – Iochpe-Maxion, the world’s largest wheel supplier and the leading structural components supplier in the Americas, has set the objective of becoming a carbon neutral supplier by 2040. This target, “ROADMAP ZERO”, is the focus of all sustainability developments at the global Tier One.
A key element of ROADMAP ZERO is Maxion’s intent to participate in the United Nations (UN) Global Compact social responsibility initiative. Iochpe-Maxion will be the largest wheel and structural components manufacturer to become a signatory. The Tier One is committed to taking a leading role in the development of sustainable mobility supply chains and is backing this pledge with concrete actions and the application of resources and global automotive industry know-how.
Iochpe-Maxion President and CEO, Marcos Oliveira, said: “ROADMAP ZERO is Iochpe-Maxion’s strategy to support the decarbonization of mobility. We are removing CO2 emissions from our production processes and developing lightweight and efficient products. Our objective is to remove emissions from the life cycle of these key components without offset credits.”
In the past year, Iochpe-Maxion issued sustainability-linked bonds to the value of $400 million and implemented a series of sustainability objectives in line with the 2040 target. Maxion is on course to reduce Scope 1 and 2 CO2 emissions in 2025 by 30%, against a 2019 baseline. By 2030, 90% of the company’s electricity will be from renewable sources. CO2 reductions will reach 70% by 2030.
How Iochpe-Maxion will become carbon neutral
ROADMAP ZERO covers the complete life cycle of Maxion’s products, from the procurement of materials to the design and manufacturing of its products. The company is developing processes and procurement strategies that increase usage of secondary, recycled materials as well green steel and aluminum produced using clean energy. It is also encouraging its partners and suppliers to make similarly ambitious commitments.
At all Maxion global operations, increased sourcing of green energy and continuous energy efficiency advances are a major focus. The Company is piloting on-site renewable energy generation, and prioritizing plants where green electricity is not readily available from the grid.
Product design innovations also support advances in zero-carbon e-mobility and sustainable transportation with lightweight structural components and aerodynamic wheels. These make significant contributions to improved vehicle efficiency, enabling further carbon footprint reductions.
Iochpe-Maxion’s ROADMAP ZERO sustainability strategy includes social programs that support the UN’s Sustainable Development Goals. The Company runs local social and environmental initiatives in the towns and cities that are home to its plants. In Brazil and Mexico for example, the Tier One works in partnership with the Iochpe Foundation, running two education projects, including Formare, a technical training program for socio-economically disadvantaged young people.
Iochpe-Maxion is a world leader in the production of automotive wheels and a leading producer of automotive structural components in the Americas. The Company has 32 manufacturing plants located in 14 countries and approximately 17,000 employees, operating its business through two divisions: Maxion Wheels and Maxion Structural Components.