Balancing Sustainability with Good Business Sense to Achieve Net-Zero

In 2023 alone, we implemented over 1,400 energy-saving projects across our global network, resulting in a reduction of more than 281,000 megawatt-hours (MWh) of energy consumption. This achievement represents a 5% reduction in total energy use and a 1.7% decrease in carbon output compared to the previous year.

While these figures may seem incremental, they are quite notable when you consider that our sales and production grew during the same period. In real terms, our progress in 2023 equates to a 12% reduction in carbon intensity—a significant accomplishment given the challenge of reducing emissions while increasing production.

Balancing Sustainability with the Bottom Line

Our commitment to sustainability isn’t just about doing what’s right for the environment—it’s also a strategic decision that supports our long-term vision. By meeting our energy reduction goals, we expect to achieve energy cost savings by the end of 2025.

For 2024, we are targeting an additional 272,000 MWh reduction, followed by a further 223,000 MWh savings in 2025. To put that into perspective, the combined 495,000 MWh we aim to save over the next two years is equivalent to powering 75,000 electric vehicles for a year, or providing electricity to homes in a city the size of Hamilton, Ontario, for over two months.

These savings are an important part of maintaining our competitiveness and supporting our profitability goals, especially in these challenging times. By prioritizing energy efficiency, we’re not only contributing to our sustainability targets but also positioning ourselves for future growth and innovation.

A Call to Action for the Industry

As Magna continues to make progress, we encourage industry peers to consider the long-term benefits of maintaining their sustainability commitments. We understand that the current economic climate is difficult, and that balancing these priorities can be challenging. However, our SBTi validation underscores our belief that sustainability can be integrated into a broader strategy that supports both environmental and business goals.

Moving forward, we will continue to share our journey, highlighting the initiatives that drive our progress and the remarkable individuals behind them. Our message is one of collaboration and steady advancement – together, we can navigate challenges and contribute to a more sustainable future for the entire industry.