The very basic tenets of AMG’s strategy are to be at the forefront of technologies that are based on materials science, and “critical” metals and materials, which target clean energy and energy efficiency. Through these technologies, we are enabling our customers (as stakeholders) to offer energy-efficient solutions and products to the markets they serve; providing our suppliers (as stakeholders) with stable access to the global market; and securing for our employees (as stakeholders) safe workplaces and long term incentive programs. As stated repeatedly, we perceive the environment to be our most important stakeholder, as environmental health is the basis for universal long term existence. Our business model is constructed around energy-efficient products—this is the common denominator of our offerings.

More details on key products aspects are found in the sections below:

product environmental benefits

For many years, we have applied a methodology of not only describing what we do in this space, but also measuring the impact of our products on CO2 emissions. The list of such products and services includes graphite formulations for energy-saving insulation materials; titanium alloys that reduce the weight of aerospace engines; advanced surface treatment of automotive engine parts and thermal treatment of aerospace turbine blades (both enabling higher operating temperatures); and aluminum structures for lightweighting in cars. In 2017, the combined impact of those activities added up to an astonishing 37.4 million metric tons of net CO2 reduction (enabling CO2 reductions less total CO2 emissions of 0.6 million metric tons in our plants) when compared to applying conventional technologies.

Over time, we have begun to realize that the concept of providing our customers with new material solutions, enabling them to implement fuel efficiency improvements and develop new energy saving products, would lead to a new, very important metric—namely how we, as a company, impact the global industrial and societal complex around us.

We can trace the impact of selected product areas with respect to the CO2 reduction these products enable. Based on our estimates, if AMG and its products had not existed in 2017, we would have approximately 37.4 million metric tons (up from 28.4 million metric tons in 2016) of additional CO2 in the atmosphere. This compares to AMG’s CO2 emissions of roughly 600,000 metric tons. We are extremely proud of this fact and we track our enabling impact, year by year, to monitor our performance. Of course, we are aware of the imperfections of measuring the enabled CO2 reduction, but it is a powerful instrument in capital allocation decisions. There will hopefully be a time when awards will also be presented for a company’s impact on CO2 emissions, as well as for financial performance. We would most happily participate in that race.

Materials Stewardship

AMG continues its progress regarding its responsibilities under the REACH regulations in Europe, and European operations are working with consortia in developing the required health, safety and environmental data. Industry groups continue to focus on developing health and safety knowledge of their products as the regulatory framework grows and expands across the world. AMG units are involved in, among others, the Vanadium International Technical Committee and the International Antimony Association.

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