Human Rights and Environmental Standards
HR LEGAL │ ISSUED: April 16, 2024 REVISED: April 16, 2024
OUR COMMITMENT
Magna is committed to conducting business in a way that balances productivity and profits with the interests ofpeople and the planet. Magna's Fair Enterprise culture recognizes the importance of human rights and environmental
protection in our business practices. This philosophy is reflected in our foundational policies, such as the Magna
Employee's Charter and the Magna Code of Conduct and Ethics.
We have implemented policies and practices aimed at fostering a legal and ethical workplace, and we exceed
applicable environmental and safety standards whenever possible. We expect our employees to act with integrity anddisclose any conflicts of interest related to third parties that may engage in business with Magna. Our commitmentswith respect to human rights and environmental protection apply to our own employees, as well as to third-party
workers, contractors, service providers and suppliers. In addition, we have identified other groups that we havedetermined may be affected by our operations/activities, as set out in Section 3.3 of this Global Company Statement.
We monitor the impact of our activities on such groups and, where applicable, our commitments to protection ofhuman rights and the environmental also extend to such groups.
All Magna employees are required to abide by our Global Labour Standards, which articulate our commitment tovarious internationally recognized frameworks that govern workers' rights, including the UN Universal Declaration of
Human Rights, ILO Fundamental Conventions, and ILO Declaration on Fundamental Principles and Rights at Work.
Sustainability is a top priority for us, and we have set near-term and long-term emissions reduction targets groundedin climate science through the Science Based Targets Initiative, with the aim of achieving net-zero emissions by
2050. By utilizing low-carbon materials, focusing on sustainable sourcing, and continuing to execute on ourelectrification product strategy, we aspire to make a meaningful contribution to the collective action necessary toachieve a more sustainable future.
Our commitment to ethics, legal compliance and sustainability extends to all levels of our supply chain. We strictly
prohibit conducting business with any sanctioned suppliers. Consistent with our Supplier Code of Conduct and Ethics,
Global Purchasing Terms & Conditions, and Global Supply Chain Requirements, we expect all suppliers and otherbusiness partners throughout our supply chain to demonstrate a similar commitment to lawful employment practices,
environmental standards, and ethical business conduct. The programs and practices in place to give effect to thiscommitment are described in further detail in this Global Company Statement.
At Magna, we are committed to making a difference through our focus on:•

Product: Delivering solutions that contribute to a better future.

•

Process: Minimizing our environmental impact throughout our operations.

•

People: Demonstrating care and concern for our employees and the communities in which they reside.

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Table of Contents

OUR COMMITMENT .............................................................................................................. 1
OUR ORGANIZATION ........................................................................................................... 3
1 HUMAN RIGHTS AND WORKING CONDITIONS .............................................................. 3
1.1 Working Conditions Generally ....................................................................................... 3
1.2 Prohibition of Underage Employment and Child Labour ................................................ 3
1.3 Prohibition of all Forms of Forced Labour and Slavery .................................................. 4
1.4 Fair Treatment .............................................................................................................. 4
1.5 Competitive and Adequate Living Wage........................................................................ 4
1.6 Freedom of Association ................................................................................................ 4
1.7 Occupational Health and Safety .................................................................................... 4
1.8 Prohibition of Unlawful Eviction ..................................................................................... 5
1.9 Use of Security Personnel ............................................................................................. 5

2 ENVIRONMENT-RELATED RISKS .................................................................................... 6
2.1 Environmental Impact ................................................................................................... 6
2.2 Environmental Violations ............................................................................................... 6
2.3 Climate Change Mitigation ............................................................................................ 6
3 SCOPE............................................................................................................................... 7
3.1 Employees ................................................................................................................... 7
3.2 Suppliers ...................................................................................................................... 7
3.3 Other Potentially Impacted Groups .............................................................................. 7
4 RISK MANAGEMENT ......................................................................................................... 7
4.1 Risk Identification ......................................................................................................... 8
4.2 Risk Analysis and Assessment..................................................................................... 8
4.3 Prioritization of Risks .................................................................................................... 8
5 CONTROL, PREVENTIVE, AND REMEDIAL MEASURES ................................................ 8
5.1 Control Measures ......................................................................................................... 8
5.2 Preventive Measures ................................................................................................... 9
5.3 Remedial Measures ..................................................................................................... 9
6 Review and Verification of Effectiveness ...........................................................................10
7 COMPLAINTS MECHANISMS ..........................................................................................10
8 REPORTING .....................................................................................................................10

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OUR ORGANIZATION
Magna is a mobility technology company and one of the world’s largest suppliers in the automotive space. As of the
publication of this Global Company Statement (the “Company Statement”), our global network includes 342
manufacturing and assembly locations and 104 product development, engineering and sales locations in 28

countries. 1 We have a global, entrepreneurial-minded team of over 179,000 employees and an organizational
structure designed to innovate like a startup. We have complete vehicle engineering and contract manufacturingexpertise, as well as product capabilities that include body, chassis, exteriors, seating, powertrain, active driverassistance, electronics, mechatronics, mirrors, lighting and roof systems. A more detailed description of theautomotive supply industry, our company, products, activities and supply chain as well as the most recent statistics
can be found in our Annual Information Form, as updated on an annual basis, which is available on Magna’s website
www.magna.com.

1 HUMAN RIGHTS AND WORKING CONDITIONS
Our key focus lies on those areas where we have identified the most significant risks related to human rights, whether
related to activities in our own operations or activities in our global supply chains. To promote a proactive andpreventative approach, we prioritize our human rights due diligence processes as set out below.

1.1 Working Conditions Generally
We are committed to compliance with all local labour and employment laws, including working hours, time-off,overtime, and wage requirements, and we expect the same from our suppliers and third parties.
We maintain comprehensive local Human Resources policies and training programs for our employees to enforce
compliance with all applicable labour and employment laws, reinforced with regular audit programs, whistle-blower
complaint processes and regular employee opinion surveys.

1.2 Prohibition of Underage Employment and Child Labour
Magna strictly prohibits the use of child labour. We are fully committed to eliminating child labour, wherever it may
occur in our business or supply chain. Our Global Labour Standards and applicable Human Resources Policies on
Minimum Working Age and Worker Identification align with the ILO Convention on Minimum Age and the ILO
Convention on Prohibition of the Worst Forms of Child Labour.
While we recognize that specific country laws dictate the legal working age, we will not support any work that
endangers the health, safety or morals of children, or interferes with their compulsory education.
Given the safety-sensitive nature of our manufacturing environments, we typically require individuals working in our
production facilities to be at least 18 years old, whether they are employees or third-party contractors, temporary
workers, or service providers.
Depending on local laws, and in accordance with ILO Conventions, certain work under the age of 18 may bepermissible only if it is not hazardous or is part of an approved educational, apprenticeship, or vocational training
program.

1 Including equity accounted JVs

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1.3 Prohibition of all Forms of Forced Labour and Slavery
Magna upholds the right of all workers to engage in voluntary and freely chosen employment. We strictly condemn
and forbid all forms of forced labour, compulsory labour, indentured labour, serfdom, debt bondage, slavery, andhuman trafficking, in accordance with ILO Core Labour Standards. We also require our suppliers and other business
partners, including recruitment agencies, staffing agencies, labour brokers, and other entities we work with, toimplement measures to prevent these practices.
Magna explicitly prohibits its locations, suppliers, and service providers from engaging in employment practices that:•

restrict workers' freedom of movement or choice of employment;•

illegally withhold workers' wages or identity documents;•

use threats, coercion, or intimidation to force individuals to work against their will; or•

involve employment practices that create debt and repayment obligations for workers, such as recruiting
and placement fees, transportation/accommodation fees, and immigration fees.

1.4 Fair Treatment
Aligned with Magna’s Global Labour Standards and related Harassment and Discrimination Policies, we maintain azero-tolerance approach to harassment and discrimination in our workplaces. We do not tolerate discrimination basedon race, national or social origin, colour, sex, religion, gender identity, disability, sexual orientation, or any otherprotected grounds recognized by applicable law. We have implemented policies that prohibit violence and bullying in
the workplace. As per the guidelines outlined in our Employees' Charter, our organization is committed to fostering awork environment that upholds principles of equity and respect, devoid of any instances of favouritism or
discrimination.

1.5 Competitive and Adequate Living Wage
We provide our employees with competitive, performance-based compensation packages, supplemented byadditional benefits. We meet or exceed applicable minimum wage and related compensation requirements in theregions in which we operate. Wages and reimbursable expenses are paid in a timely manner, in full, using recognizedcurrencies. Deductions from wages can be made only in accordance with local legal requirements and employee
consent. Any such deductions are fully disclosed using transparent and regularly issued pay statements, consistent
with local laws.

1.6 Freedom of Association
Consistent with our Global Labour Standards, we acknowledge and respect the right of our employees to freely
associate and be represented, in accordance with local laws, regulations, and relevant industrial relations practices in
the jurisdiction concerned. We also recognize that the right to be represented is an individual right, not an obligation,
allowing employees to freely decide not to be represented if they so choose. We support open dialogue andcollaboration with legally recognized representatives to safeguard the interests of our employees, staying aligned withthe principles outlined in our Employees' Charter. We fully comply with applicable local laws and regulations
concerning collective bargaining, and we make efforts to foster cooperation and mutual respect with employee
representatives in order to maintain good faith relationships with worker representative organizations, where they
exist.

1.7 Occupational Health and Safety
We prioritize safe workplaces that emphasize the health and well-being of our employees. As part of our Global
Health, Safety, and Environmental Policy, we have implemented a comprehensive global health and safety program
through which we strive to meet or exceed national and international standards for occupational health and safety.

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We regularly review our standards and commit to ongoing improvement in this area through comprehensive facility
audits and inspections.
We also promote certification to the health and safety standard ISO 45001 or any successor standards.

1.8 Prohibition of Unlawful Eviction
Magna respects the prohibition of unlawful eviction and the prohibition of unlawfully depriving individuals of land,
forests, and waters in the acquisition, construction, or other use of such resources that secure livelihoods.

1.9 Use of Security Personnel
We do not tolerate unlawful behaviour towards employees or third parties by our security personnel or any private or
public security personnel contracted or utilized by us. Security personnel, like any other employees or contractors,
are bound by our Magna Code of Conduct and Ethics or our Supplier Code, which obligate them to respect allinternationally recognized human and environmental rights. Their actions must not violate rights, impede freedom of
association, cause harm to life, wellbeing, and safety, involve torture, or result in inhumane treatment. These
expectations also extend to any public security personnel engaged to protect our enterprise.

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2 ENVIRONMENT-RELATED RISKS
2.1 Environmental Impact
We are committed to exceeding, where possible, all applicable environmental laws and regulations. Our internal
standards are based on widely accepted environmental practices and established industry codes of conduct. These
measures are in place to prevent harmful impacts to soil, water, air, forests, wildlife and biodiversity, and to minimize
waste generation and emissions, and excessive water consumption that may impact human health and theenvironment.
Regular reviews, comprehensive facility audits, and inspections are conducted to assess conformance as well as
demonstrate continuous progress in this area.

2.2 Environmental Violations
Concern for the environment is central to who we are and what we do at Magna. We expect the same from our
suppliers. We require suppliers to meet or exceed applicable environmental laws and actively minimize the impact of
their operations on the environment. Suppliers must also strive to:•regularly evaluate and monitor the environmental impact of their business activities•

minimize waste and emissions;•

implement recycling practices at every stage of the product life cycle;•

safely and legally store hazardous and combustible materials; and•reduce environmental impact through innovative design approaches.

We prioritize compliance with the principles underlying the Minamata Convention, which regulates the use andproduction of Mercury; the Basel Convention, which governs the transboundary movement of wastes; and theStockholm Convention, which regulates the use of Persistent Organic Pollutants.
We support and encourage certification to ISO 14001 environmental management standard or EU EMAS ecomanagement system, ISO 50001 energy management standards, or any successor standards, and encourage our
suppliers to develop plans to achieve such certification status.

2.3 Climate Change Mitigation
We are committed to making a positive impact on the planet and future generations by developing innovative
products, embracing sustainable practices, shifting to renewable energy sources, and making our manufacturing
processes more efficient. We have set near-term and long-term emission reduction targets grounded in climate
science through the Science Based Targets Initiative, with the aim of achieving net-zero emissions by 2050. Thesetargets include scope 3 emissions, with a significant focus on Category 1 (purchased goods and services). In thisregard, we prioritize the use of low-carbon materials and sustainable sourcing and procurement practices. We firmly
believe that sustainability can be achieved only through collective action, and we actively collaborate with our
suppliers on sustainability topics. We expect our suppliers to implement robust decarbonization programs thatmeasure, verify, and report their emissions, including their own supply chain scope 3 emissions.

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3 SCOPE
3.1 Employees
We are committed to upholding internationally recognized human rights and ensuring equal treatment for our
employees, as well as those temporary staff and contractors working within our operations. Our policies emphasize
the importance of providing fair employment opportunities and working conditions regardless of personal
characteristics protected by law. We foster diverse and multicultural workplaces that create a respectful environment
where all workers feel safe, valued, and have the chance to grow both personally and professionally.

3.2 Suppliers
At Magna, we hold ourselves and our suppliers to high ethical standards. Our Supplier Code of Conduct and Ethics(the “Supplier Code”) serves as the foundation for successful business relationships with Magna, as well as any subsuppliers involved in serving Magna. We require all our suppliers to adhere to the human rights, labour andenvironmental standards outlined in the Supplier Code. Magna communicates the standards expected of its suppliers
through a variety of mechanisms, including: supplier conferences/roundtables; direct buyer interactions;correspondence with suppliers; our Corporate website and Supplier information portal; and corrective action plans
generated from self-assessment questionnaires or audits we request suppliers to complete.
Pursuant to the Supplier Code and applicable Purchasing Terms and Conditions, suppliers are required to cooperatewith audit and investigation activities to validate their adherence to these standards.
In accordance with the Supplier Code suppliers should require their own suppliers and sub-suppliers to establish
similar sustainability policies to facilitate a consistent commitment.

3.3 Other Potentially Impacted Groups
As a result of our Risk Management and Due Diligence processes for our global supply chains, various other groupsof people may be affected by our business activities or their own business activities. These groups include:•

groups indirectly involved in the supply chain; and•members of local communities, including indigenous peoples.

We continue to monitor any impacts on Magna may have on these groups through our Risk Management and Due
Diligence processes.

4 RISK MANAGEMENT
Magna is fully committed to upholding human rights, including without limitation prohibitions against child/forced
labour, as well as ensuring environmental compliance, while continuously improving our due diligence processes. In
addition to setting the “tone from the top” regarding this commitment, Executive Management approves theimplementation of the policies, procedures, systems, and tools described in this statement, including through the
Magna Compliance Council, which provides regular and ad-hoc updates on measures implemented to comply with
relevant laws and regulations covering the topics in this Statement. Several of Magna’s Corporate functions centrally
manage policies and, in some cases, implement activities aimed at human rights and environmental risk.
•

Magna's Human Resources function, including Magna’s Health & Safety and Environmental departments,
are responsible for ensuring respect for human rights and related environmental standards within our own
business, as well as managing due diligence processes.

•

The Purchasing and Supplier Risk Management departments are responsible for directing due diligenceprocesses within the supplier base.

•

Our Ethics and Compliance function oversees our ethics and compliance program, updates key policies

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such as our Code of Conduct and Ethics and Supplier Code, and is responsible for our Ethics andCompliance training.
•

To support and oversee due diligence requirements and processes, the Executive Management Team has
appointed the VP of Human Resources Europe as the Company’s Human Rights Officer 2.

•

Other specialist functions provide regular and ad-hoc reports to their function leadership but also to the
Human Rights Officer.

•

Overall support for ESG policy, practices and initiatives is also provided by our global Sustainability team.

Day-to-day responsibility for effective implementation and execution of compliance activities relating to human rights
and environment-related risks are managed by each of Magna's Operating Groups and their respective businessdivisions and partners within the overall framework of this Statement and with the support of the Magna Corporate
functions referred to above.

4.1 Risk Identification
We follow a systematic approach using data intelligence to identify human rights and environment-related risks.
External data sources and legally compliant AI tools support us in determining country-specific and commodity grouprisks for our purchasing activities and/or business purpose-specific risks for our own operations, business, andpartners. Discoveries gained from implementing measures and through complaint mechanisms such as Magna’s
Hotline are continuously incorporated into our risk identification process to improve our processes.

4.2 Risk Analysis and Assessment
After the identification phase, we evaluate and weigh the data collected. We consider severity and probability ofoccurrence as moderating factors (e. g. based on legally prescribed adequacy criteria) to get an overall risk exposure.
Any identified risks, in our own business as well as our supply chains, are further analyzed. To further clarify andverify risk exposures and identify actual negative impacts on people, human rights, and the environment, we use
audits in our own business and utilize control measures such as industry standard questionnaires or on-site audits forour suppliers.

4.3 Prioritization of Risks
We identify, evaluate and prioritize risks based on the likelihood of the risk occurring, severity of the impact should arisk materialize, and the extent of our contribution to the risk, if any. Within our supply chain, prioritization of certain
risks may also include considerations relating to our proximity to the risk and our ability to influence mitigation of therisk by a supplier. Ultimately, we integrate our learnings about human rights and environment-related risks and theirimpacts into our corporate decision-making processes, including supplier nomination and selection processes.
Substantiated deviations from the requirements in this Statement are escalated to Magna Management.

5 CONTROL, PREVENTIVE, AND REMEDIAL MEASURES
5.1 Control Measures
Within our own operations, Magna will conduct unannounced periodic workforce audits to verify compliance with the
key human rights requirements outlined in this Statement, including third party workers. All third-party recruiters,
staffing agencies, and service providers who assign personnel to work within Magna facilities will be required tocomply with these expectations and audit requirements as a condition of doing business with Magna. Relationships

2 in accordance with and limited to the scope of the German Supply Chain Act

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with third-party suppliers and Labour Brokers are governed by Magna’s Policy regarding use of Temporary Staffing
and Employment Agencies, Recruiting Firms and Labour Brokers.
In addition, we have integrated a third-party software program for supply chain risk monitoring and management into
our due diligence process. This solution provides a comprehensive view of the supply chain and helps identify earlysigns of human rights abuses, environmental degradation, and other sustainability issues.
Magna is a founding member of the Responsible Supply Chain Initiative (RSCI), an association of automotive OEMs,
Tier 1 Suppliers and industry associations, which has established an assessment program for due diligence in theautomotive supply chain relating to social compliance, occupational safety and environmental protection.
To promote adherence to our standards, Magna facilities will maintain access procedures that require all employees,
third-party contingent workers, contractors, and service providers to verify their age and identity with satisfactory
photo identification. Additionally, where local laws permit, employees and third-party workers are required to provide
documentation verifying their legal right to work in the applicable country or jurisdiction, such as valid social security
identification, work permits, or visa documentation.

5.2 Preventive Measures
We also rely on training within our organization to promote compliance with the requirements set forth in thisstatement, including but not limited to:•

Magna’s Code of Conduct and Ethics•

Forced/Involuntary and Child Labour•

Doing Business with Staffing and Recruiting Agencies

5.3 Remedial Measures
When there are reasonable suspicions of violations, we aim to substantiate the matter through prompt investigation.
In cases where employee or third-party worker behaviour has resulted in a violation of human rights and/or
environmental standards, appropriate measures will be taken, including potential termination of employment of theemployee(s) responsible.
If we determine that Magna or its suppliers have violated human rights and/or environmental standards, or if such a
violation is imminent, we are committed to taking immediate corrective action to prevent, stop, or remediate theviolation. Our suppliers and other business partners are contractually obligated to provide information and cooperate
in a timely manner to allow Magna to prevent, mitigate, or remedy any potential violation. Depending on the extent of
the violation, we reserve the right to require our business partners to rectify the situation immediately, initiate legal
action, temporarily suspend the business relationship, or terminate it, if necessary.
Where harm is done, directly or indirectly, Magna is committed to taking action to identify and implement appropriate
remedial action for the benefit of those who may have suffered loss.

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6 REVIEW AND VERIFICATION OF EFFECTIVENESS
On at least an annual basis, we verify the effectiveness of our due diligence process and measures to prevent or
mitigate adverse human rights and environmental impacts either through internally managed processes andpersonnel or through external third parties (ESG audits, certification schemes, etc.). We assess whether ourcompliance standards are being met. Within our own business, we conduct risk-based audits such as Magna’s
regular Labour and Employment Audits, investigate potential human rights violations and conduct regular Employee
Opinion Surveys. By doing so we identify local workplace / compliance issues of concern and put action plans inplace to improve or take corrective action. We also evaluate the effectiveness of training through quizzes and tests
embedded in training modules. Regarding the effectiveness of measures implemented in our supply chain, we
continuously evaluate the results of our ongoing human rights and environment-related risk assessment. To validate
the impact of our measures, we conduct risk-based reviews of environmental and social standards using various tools
and procedures, such as document reviews and inspections/audits. Whenever possible, we also involve potentially
impacted individuals or their representatives and guarantee that rights-holders are consulted during the audits. We
continuously monitor the legislative landscape regarding human rights and/or environmental compliance.

7 COMPLAINTS MECHANISMS
To promote the effective prevention and remediation of any adverse human rights and/or environmental impacts, wehave established a robust and comprehensive complaints management process as an integral part of our due
diligence procedures. Our own employees can take advantage of several reporting mechanisms, including our OpenDoor Process, employee Fairness Committees and Employee Advocates program. In addition to these internalmechanisms, if any stakeholder experiences prohibited treatment or becomes aware of violations of the requirements
or expectations outlined in this Statement, we strongly encourage them to utilize the Magna Hotline, which provides
an additional avenue for employees and third parties (including our suppliers) to report suspected violations of
Magna's Employee’s Charter, the Code of Conduct and Ethics, and the Supplier Code.
Magna strictly prohibits any form of retaliation against individuals who report legal and ethical concerns in a truthfuland good-faith manner, as outlined in our Policy on Anti-Retaliation. All communications made through the complaints
management process are treated confidentially, in accordance with relevant local data protection laws. Anonymity ispossible when reporting through the Magna Hotline (if local law permits). Should an individual voluntarily choose toreveal their identity, Magna will make diligent attempts to preserve confidentiality throughout the investigative
procedures. We conduct comprehensive investigations into all reports and reasonable suspicions that are brought toour attention.
In case you want to raise a concern or a complaint: Contact the Magna Hotline(https://secure.ethicspoint.com/domain/media/en/gui/38845/index.html)

8 REPORTING
The disclosure of our supply chain responsibility is included in our annual Magna Sustainability Report, which isaccessible to the public through our website (www.magna.com). We fulfil our obligation to submit annual reports, asmandated by applicable legislation. These reports contain information about our commitments to human rights andthe environment, as well as the effectiveness of our due diligence procedures. By making these reports available on
our website, we aim to inform the public about our initiatives in upholding human rights and environmental standards.

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ABOUT THIS COMPANY STATEMENT
We will conduct both annual and ad hoc reviews of this Company Statement to ensure its continued alignment with
our objectives and will promptly update it in response to any identified changes (including applicable laws) orincreased risks. Please note that this Company Statement does not create any rights for individuals or third parties.
For more information on the topics covered in this document, please visit www.magna.com
Persons with questions regarding this Company Statement can reach out to Magna’s Ethics and Legal Compliancedepartment (https://www.magna.com/contact/ethics-legal-compliance)

Issued:Revised:Next Review:
Issued By:
Approved By:

April 16, 2024
April 16, 2024
April 16, 2025
HR Legal
HR Legal

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