Strategic Environmental Management
“We were among the first companies globally, and the first automotive Tier 1 supplier, to commit to the Science Based Targets for Nature (SBTN), which reflects our belief that climate action and nature protection must go hand in hand. Through this initiative, we seek to strengthen how we understand, measure, and reduce our impacts on water, biodiversity, land use, and ecosystems across our value chain.”
Ricardo García Guerra, Sustainability Coordinator
Metalsa's climate and environmental transition activities are guided by a structured, multi-policy framework applicable across all facilities and supported by certified management systems. Our key policies include:
- Environmental Policy
- Energy Policy
- Water Stewardship Policy
- Health and Safety Policy
- Code of Conduct
- Global Project Investment Policy
Sustainability Risks
In 2025, we continued managing and reporting the climate-related risks and opportunities identified in previous years, based on the comprehensive analysis aligned with the Task Force on Climate-related Financial Disclosures (TCFD).
This analysis, originally conducted and expanded in 2024, includes the quantification of climate risks and opportunities under temperature increase scenarios toward 2030 and 2050. These results remain in use during 2025 and continue to inform our risk management processes and strategic decision-making.
Climate Change and Energy Ecoefficiency
Our Energy Policy establishes our commitment to the efficient use of energy as a key enabler of both sustainability and global competitiveness. This policy applies across all operations and supports decision-making related to energy performance. Its approach is focused on improving operational performance through energy efficiency, responsible resource management, process optimization, and the progressive incorporation of cleaner technologies and renewable energy sources. These efforts are integrated into our broader sustainability strategy and support both environmental stewardship and long-term value creation.
We established a 2030 global target to increase the use of renewable energy by 62%, reinforcing our commitment to advancing toward a cleaner energy matrix and reducing emissions associated with conventional energy consumption.
During 2025, we continued implementing initiatives aligned with our Energy Policy and ISO 50001 management systems to improve operational efficiency and optimize energy use across our facilities; some of them were:
- Optimization of production processes
- Technological modernization
- Energy management programs
- Training and awareness initiatives
As of 2025, three sites are certified under ISO 50001, with three additional sites in the certification process, reinforcing our commitment to improve energy performance.
in electricity consumption vs. 2024
of total energy consumption derived from renewable energy sources in 2025
in sales — energy intensity ratio
2025 Emissions1
69,122.26 tCO2e*; −13.66% vs. 2019 baseline
Total Scope 1 & 2 (location-based) = 182,012.45 tCO2e;
−12.71% vs 2019 baseline
Total Scope 1 & 2 (market-based) = 143,620.90 tCO2e;
−27.62% vs 2019 baseline
112,890.18 tCO2e (location-based)*
74,498.63 tCO2e (market-based)*
64.76 tCO2e/USD million in sales (location-based)*
51.10 tCO2e/USD million in sales (market-based)*
1 Please refer to our Basis of Reporting, located immediately after the Assurance Report, at the conclusion of our Sustainability Report.
2 Scope 1 emissions include operations from Mexico, US, Brazil, Argentina, India and Thailand. Includes emissions from manufacturing facilities.
3 Scope 2 emissions include operations from Mexico, US, Brazil, Argentina, India, Thailand and Japan. Includes emissions from manufacturing facilities, administrative offices, sequencing centers, and technology centers.
*ERM CVS assured metrics.
Our Targets
Metalsa's greenhouse gas (GHG) reduction targets have been officially validated by the Science Based Targets initiative (SBTi). We are committed to achieving Net Zero by 2050, with the following near-term and long-term targets:
Near-Term Targets (2030):
- Reduce absolute Scope 1 and 2 GHG emissions by 46.2% by 2030 (base year: 2019).
- Reduce Scope 3 GHG emissions from purchased goods and services covered by the iron & steel core boundary by 40% per ton of purchased steel by 2030 from a 2022 base year.
- Reduce absolute Scope 3 GHG emissions from upstream and downstream transportation and distribution by 42% by 2030 from a 2022 base year.
Long-Term Targets (2050):
- Reduce absolute Scope 1 and 2 GHG emissions by 90% by 2050 (base year: 2019).
- Reduce absolute Scope 3 GHG emissions by 90% by 2050 (base year: 2022).
Progress against Scope 2 targets is assessed using the market-based method, consistent with the GHG Protocol Scope 2 Guidance. Location-based emissions are also disclosed for transparency.
Water Management
As part of our environmental management approach, we are committed to responsible water use and to ensuring compliance with applicable regulations related to water consumption and wastewater management.
Water interactions across Metalsa's operations vary according to the operational infrastructure and local context of each region where we operate. Water is a key input in several production processes, primarily in painting lines, reverse osmosis systems, and cooling towers. At sites without industrial processes, water consumption is mainly associated with human use, including sanitation services, cafeterias, and cleaning activities.
During 2025, we strengthened our water risk assessment approach in collaboration with Waterplan, conducting evaluations across all production plants through the integration of local information, global datasets, and internal vulnerability surveys.
As part of these efforts, Metalsa strengthened internal capabilities through the implementation of our Global Water Policy, which establishes guidelines for water management and defines governance responsibilities at each site. Furthermore, during 2025, operational teams received training related to water balance management, water risks, reporting metrics, and alignment with corporate water objectives.
Throughout 2025, we continued implementing initiatives focused on:
- Water recycling and reuse
- Preventive maintenance programs
- Rainwater harvesting systems
- Treated effluent reuse projects
- Water circularity initiatives at specific sites, including Zero Liquid Discharge (ZLD) systems.
At the external level, Metalsa promotes engagement with stakeholders, including employees, customers, local communities, and other relevant parties, with the aim of gathering information, addressing concerns, and strengthening transparency and accountability in water management. This approach is aligned with the Global Water Stewardship Policy, which encourages stakeholder engagement as part of strengthening water management practices and supporting informed decision-making.
We established a global objective of reducing water withdrawals by 30% by 2030, compared to a 2021 baseline, aligned with the Sustainable Development Goals (SDGs).
−21% vs. 2021 baseline
* The sites identified as located in water-stressed areas, as validated by Waterplan, are Apodaca CV, Apodaca LV, Saltillo, Guanajuato, Rayong, and Jamshedpur.
4 Variations compared to the baseline reflect, among other factors, the progressive strengthening of traceability, transparency, and methodological accuracy processes applied to the reporting of these indicators.
5 2025 water discharge data correspond to the sites with information available at the end of the reporting period. For the Apodaca site, discharge values were estimated based on available water withdrawal data as part of a methodological validation process conducted with the service provider. Variations compared to previous years reflect both the expansion of reporting coverage and adjustments to water indicator definitions aimed at improving consistency with GRI and CDP standards. Metalsa is currently developing an improvement project that will enable more complete and accurate reporting in the next reporting cycle.
Waste Management
We strive to minimize the environmental impacts associated with the waste generated throughout our activities, while progressively strengthening our circularity approach. Hazardous waste generated includes paint sludge, empty containers, petroleum and phosphate sludge, used oil, and used gloves. Non-hazardous waste primarily includes wood, aluminum, PET, cardboard, welding wire packaging, and general waste sent to landfill.
During 2025, we maintained initiatives focused on prevention, recovery, and operational improvement such as:
- Employee awareness and waste management training.
- Identification and engagement of suppliers with recycling practices.
- Replacement of materials with more recyclable alternatives.
Metalsa received the WeCYCLE Certification 2025, recognizing efforts to promote circular economy practices through recycling initiatives, including plastics, paper, and used cooking oil.
513 of hazardous waste and 2,994 of non-hazardous6
6 Of the remaining waste, 2,710.15 tons of hazardous waste were sent to incineration, 1,830.56 tons were eliminated by other processes, and 1,953 tons of non-hazardous waste were sent to landfill.
Circularity Strategy
We formally launched our circularity strategy, reinforcing our commitment to resource efficiency, waste reduction, and sustainable production. To support this effort, we strengthened our understanding of environmental impacts and material flows through Life Cycle Assessment (LCA) and Material Circularity Indicator (MCI) methodologies, enabling us to identify opportunities to reduce reliance on virgin materials and improve product sustainability. These initiatives provide a structured framework for integrating circular economy principles across our operations, products, and value chain, supporting long-term resilience, decarbonization, and more sustainable mobility solutions.