Environmental, Social Responsibility and Corporate Governance Policy

Motorcar Parts of America, Inc. (MPA) is a dedicated, responsible corporate citizen and an environmental leader, with ongoing policies to better manage resources, improve operating efficiencies, and promote conservation.

Highlights of MPA’s ESG Commitments:

  • Leveraging the company’s leadership and more than 50-year history in remanufacturing to further improve the company’s global environmental footprint. Examples include:
    • A new state-of-the art distribution center at the company’s Tijuana, Mexico facility utilizing high-tech, energy efficient forklift machinery and a centralized recharging operation.
    • Opportunities to consolidate product shipments to customers -- reducing fuel consumption with related air quality improvements.
  • Board diversity
    - Our board is ethnically diverse and comprised of 10 independent directors, including three women.
  • A focus on increasing employee diversity to exceed the current more than 40 percent female workforce on a global basis.
    - Company employee retention rate is more than 93.
  • Promoting a respectful workplace environment.
  • Honoring traditions and customs of the communities where we have a presence.
  • Meet or exceed all local, state, and federal laws in all countries in which we operate.
  • SMART performance metrics tied to incentive/bonus policies.
  • Strong culture of quality and innovation.

Our Environmental Commitment in Practice

Since its establishment in 1968, environmental and sustainable processes have been a hallmark of the company.

With the potential to reduce material and energy consumption by up to 95 percent, industry sources believe that remanufacturing is the most efficient and sustainable process for producing aftermarket replacement parts -- making MPA’s business practices green by nature, supported by processes noted below.

Highlights of the company’s eco-friendly remanufacturing processes and its industry leadership, include:

  • Sorting the broken-down units returned by customers utilizing an innovative and efficient core-sorting process.
  • Reconditioning and re-utilizing durable components after passing rigorous testing processes.
  • Savings of approximately 58 tons of raw materials in fiscal 2020, due to a reduction in the required materials in the remanufacturing production process, compared with new product processes.
  • Recycling of 370,080 tons of water per year Recycling of 298 tons of cardboard and 2,147 tons of metal from our Torrance facility alone.

How Remanufacturing Can Address Climate Change

The remanufacturing process preserves the energy required in forging and forming durable components, an advantage to recycling alone; and it allows for recycling of metal scrap, such as copper, aluminum, and steel. Equally important, by reclaiming and reconditioning components, the remanufacturing process also conserves the energy and materials that would be required to create new parts. Manufacturing one new starter for instance requires more than 10 times the amount of energy and nine times the number of materials compared with producing remanufactured parts. Manufacturing a new alternator requires approximately seven times the amount of energy and eight times the amount of raw material necessary to produce a remanufactured part. As highlighted above, the company reduced raw material usage in manufacturing by nearly 58 tons in fiscal 2020 through its remanufacturing process. The energy savings translates into lower carbon dioxide output and overall lower consumption. In fact, industry sources estimate, remanufactured products conserve roughly the equivalent of 400 trillion BTUs of energy per year. The remanufacturing process employed by MPA takes real steps to mitigate the effects of climate change, by drastically reducing the greenhouse gas emissions that are normally generated by producing new parts.

Committed to Social Responsibility in Action

Motorcar Parts of America is firmly committed to social responsibility. While safety, respect and inclusion have always been fundamental to the company, these qualities are more important than ever given the global pandemic and the impact it is having on employees, family members, and the community at large. Medical professionals are onsite or within close proximity to the company’s operations, and management is doing everything possible to address the challenges. In addition, socially responsible initiatives include subsidized food programs for certain employees and donations to community organizations, sponsorship of sport teams and weekend family events, which hopefully will become possible again as the company and the world recovers.

Human Rights Policy

As part of our Supplier Code of Conduct, suppliers are required to acknowledge compliance with MPA’s polices, and state, federal and international law, as applicable. MPA expects its suppliers to comply with all applicable laws, rules, and regulations, including, without limitation, the specific laws, rules, and regulations referenced below, and to refrain from any illegal conduct, including, without limitation, conduct that is illegal under the U.S. Foreign Corrupt Practices Act and applicable foreign anti-bribery laws. The company expects its domestic and international suppliers to abide by the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC) – Sanctions Programs.

Health and Safety

MPA’s operations in Torrance, California follows all local, state, and federal laws. Management conducts ongoing audits, evaluations and reports accordingly. Our wholly owned Canadian subsidiaries’ health and safety policies are reviewed and approved annually by management teams, as per the ESA and the Ontario Occupational Health & Safety Act. Monthly and quarterly meetings and inspections are conducted with the company's safety committees. Management reviews all health and safety issues monthly and creates a report; Our operations in Malaysia follow similar procedures and comply with local regulations and HSE.