Magna is submitting net-zero emissions targets for validation by the Science Based Targets initiative (SBTi), the widely-accepted benchmark for decarbonization targets in line with the Paris Climate Agreement. The company’s goal is to achieve net-zero emissions status by 2050, and meet its near-term Scope 1, 2 and 3 targets by 2030.
“Magna has focused on creating a better world of mobility, and the company’s pursuit of net-zero emissions reflects this commitment,” said Magna CEO Swamy Kotagiri. “To reach this ambitious target, we are addressing not only the emissions we produce within our own facilities but also those of our entire supply chain, while supporting the industry move to low-carbon mobility technology. By embracing sustainable practices, shifting to renewable energy sources, making our manufacturing processes more efficient and partnering with our customers in the transition to electric vehicles, we want to make a positive impact on the planet and future generations.”
Magna’s pursuit of net-zero emissions will involve several interim steps, including transitioning to 100% renewable electricity use in the company’s European operations by 2025 and globally by 2030. The company’s net-zero strategy includes a near-term commitment to reduce approximately 42% of the company’s scope 1 and 2 emissions, and approximately 25% of its scope 3 emissions, each by 2030. Magna has also submitted these near-term targets to the SBTi for validation simultaneously with its net-zero target.
The company said to achieve its goals, it will require immense collaboration amongst employees, suppliers, customers, consumers and partners to ultimately drive scale and reach.
“We know we can’t fight climate change alone, which is why we are working with our customers and partners, including 10,000 supplier companies, to optimize our natural resources,” said Ahmed ElGanzouri, global director, sustainability and energy at Magna. “Beyond Magna, I see a true cooperative spirit across the industry to identify the challenges and address them together.”
Magna is engaged with various organizations and associations focused on educating and partnering on initiatives to help create a sustainable future, the company said. One example is the Suppliers Partnership for the Environment (SP), an innovative forum to spark collaboration within the global automotive supply chain between automakers, suppliers, the U.S. EPA and other government entities from around the world.
Within its own operations, Magna has already made progress toward sustainability. In 2023, the company is on track to reduce global energy intensity by 10% in all manufacturing facilities, with a target of 20% energy intensity reduction by 2027. Additionally, more than 30 Magna divisions have achieved carbon neutrality over the last two years, the company said.
