2025 Sustainability Report

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Contents

Summary Metrics Introduction Environmental Social Governance Sustainability Metrics Annex

8

13

25

Environmental Stewardship & Climate Action

60

Social Responsibility

81

88

96

2025 Sustainability Report | 2

Summary Metrics Introduction Environmental Social Governance Sustainability Metrics Annex

A Message from our Chief Executive Officer

Swamy Kotagiri

Chief Executive Officer

Sustainability and operational excellence remain central to Magna's long-term success. In 2025, we made meaningful progress that strengthens our competitiveness and demonstrates how deeply sustainability is embedded in our strategy.

While we're seeing tangible results, we operate in a dynamic environment. Shifts in production, geopolitical uncertainties and a bumpy EV transition mean some facilities face the challenge of operating more efficiently. Yet our teams are ready for even more stretch goals as we accelerate the shift to safer, smarter and greener mobility.

2025 Sustainability Report | 3

By fostering a culture of accountability and continuous improvement, we are reducing our environmental footprint, enhancing operational performance and delivering long-term value for customers, shareholders and the communities we serve.

Summary Metrics Introduction Environmental Social Governance Sustainability Metrics Annex

A Message from our Global Director, Sustainability and Energy

We continue to shape a more sustainable future by tapping into the Power of One Magna by

collaborating and sharing best practices among our divisions and across our vast global supply chain. This past year we:

• Achieved major 2025 sustainability milestones, including 100% renewable electricity across European operations and a sevenfold increase in on-site renewable generation since 2021.

• Surpassed Phase 1 goals of the Energy Cost Optimization initiative, delivering more than

  $50M in annual savings, and are now on track to reduce energy usage by 700,000 MWh by the end of 2026.

  2025 Sustainability Report | 4

• Advanced sustainable mobility through Magna's four pillars of sustainable materials, alongside flexible powertrain and intelligent driving technologies that support cleaner transportation.

• Expanded impact across the supply chain through Transform: Auto and broad supplier engagement, with 3,358 suppliers completing our ESG scorecard.

• Continued prioritizing people by strengthening employee protection, working conditions, and respect for human rights across our operations and value chain.

The work we are doing creates value on every front, it strengthens our business for the long term. It's better for our planet, better for our employees and better for our stakeholders.

Our Commitment to a Sustainable Future

Magna's decarbonization targets are built on principles of operational excellence and innovation. As a global leader in the automotive industry, Magna has set ambitious net-zero targets. Magna has approved near- and long-term science- based emission reduction targets with the Science Based Targets Initiative ("SBTi"), and the SBTi has verified Magna's net-zero science-based target by 2050.

Where We Are

Year Over Year Progress

Where We Are Going

100%

Expected by end of 2030

100%

Expected by end of 2030

100%

Expected by end of 2030

~49

In progress or currently investigating

Our Renewable Electricity Progress

Magna Sustainability 2025 Results

26%

Reduction in Carbon Intensity

from 2021 Baseline

12%

Reduction in Energy Intensity

from 2021 Baseline

39%

Renewable Electricity Buy

3X 2021 Baseline

18%

Water Reduction

from 2019 Baseline

97%

Waste Diverted from Landfill

81,595 MWh

Renewable Energy Generated Onsite

249,000 MWh

Energy Reduction Projects Implemented

Validated SBTI Near-Term & Net-Zero Targets

4

Launch of Magna's 4 Pillars of Sustainable Materials

ECO50

2 Year Initiative to Provide

$50M in Energy Savings

3,358

Suppliers Completed Magna's ESG Scorecard

100%

Renewable Electricity in Europe

Magna GHG Emissions (Scopes 1,2& 3, Metric Tons (t) CO2e)

Metric

Scope 1 Emissions

Scope 2 (Market- Based) Emissions Scope 3 Emissions

2024

418,963*

1,158,866*

55,969,512(2)

2021 Baseline

436,267*

1,089,730*

58,655,441

▼ 4.8%

▼ 18.3%

▼

4.6%(4)

Change From 2021 Baseline(3)

2023

424,561*

1,150,656*

57,842,606

2025

415,416*

889,810*

Not available(1)

Magna GHG Emissions (Scope 3, by Category, Metric Tons (t) CO2e)

Scope 3 Emissions by Category(5)

1. Purchased Goods & Services

2. Capital Goods

3. Fuel- and Energy-Related Activities

4. Upstream Transportation & Distribution

5. Waste Generated in Operations

6. Business Travel

7. Employee Commuting

2023

30,165,695

533,363

319,890*

959,848

318,272*

43,955

136,815

Change From 2021 Baseline(4)

▲ 26.8%

▲ 55.2%

▼

▼

1.4%

6.9%

▲ 17.3%

▲ 59.5%

▲ 22.4%

2021 Baseline

22,762,020

372,331

318,366

791,049

306,063

26,924

132,015

2024

28,870,543

577,943

313,898*

736,426

358,930*

42,947

161,552

8 Upstream Leased Assets Not relevant to Magna

*denotes that this metric has been verified by an independent third-party verification firm.

Notes:

1 2025 Scope 3 emissions inventory not available at time of preparation of this Sustainability Report. These emissions will be reported in our annual CDP submission.

2 Our Scope 3 data is based on completed inventories for the applicable year. Our Scope 3 emissions data includes twelve relevant categories. Scope 3 categories 8, 13 and 14 are not relevant to Magna.

3 We have used a 2021 baseline for our emissions reporting in the tables above, in line with our science-based near-term and net-zero targets.

4 2024 Scope 3 emissions compared to 2021 baseline.

5 Improvements in data collection or changes in methodology used to calculate Scope 3 emissions (e.g., availability of primary data to replace secondary data such as industry averages) can result in fluctuations in Scope 3 inventory.

Summary Metrics Introduction Environmental Social Governance Sustainability Metrics Annex

*denotes that this metric has been verified by an independent third-party verification firm.

Notes:

1 Energy Management, Waste Management, and Health and Safety Data is preliminary.

2 Items indicated by a dash were not tracked in baseline year. We have used a 2019 baseline for other metrics consistent with our previous sustainability reports.

3 Percentage of Magna facilities with the applicable certification is: ISO 14001 (~71%), ISO 50001 (~7%), and ISO 45001 (~51%).

4 In order to avoid the additional expense and disruption of litigation, in July 2025, Magna elected to settle a Canadian class action lawsuit alleging anticompetitive conduct in the market for door latches and closure systems. Magna made no admissions of guilt or wrongdoing through the settlement.

5 Wholly owned operations only.

6 Assuming the election of all Board nominees at Magna's annual meeting of shareholders on May 4, 2026, the percentage of women on the Board will be 33% (40% three-year gender parity average as of 2025).

Summary Metrics Introduction Environmental Social Governance Sustainability Metrics Annex

Environmental & Health

and Safety Certifications

ISO 14001 Certified Divisions

Number

280(3)

-

ISO 50001 Certified Divisions Number

26(3)

-

ISO 45001 Certified Divisions

Number

201(3)

-

Competitive Behaviour

Total amount of monetary losses incurred as a result of legal proceedings associated with anti-competitive behaviour regulations

Reporting Currency (USD)

100,000(4)

-

Gender Diversity

% of employees who are women(4)

Percentage (%)

29.4%(5)

-

% Women in Critical Positions

Percentage (%)

21.5%

-

% Women on the Board of Magna

Percentage (%)

38%(6)

▼ 400 bps

*denotes that this metric has been verified by an independent third-party verification firm.

Notes:

1 Energy Management, Waste Management, and Health and Safety Data is preliminary.

2 Items indicated by a dash were not tracked in baseline year. We have used a 2019 baseline for other metrics consistent with our previous sustainability reports.

3 Percentage of Magna facilities with the applicable certification is: ISO 14001 (~71%), ISO 50001 (~7%), and ISO 45001 (~51%).

4 In order to avoid the additional expense and disruption of litigation, in July 2025, Magna elected to settle a Canadian class action lawsuit alleging anticompetitive conduct in the market for door latches and closure systems. Magna made no admissions of guilt or wrongdoing through the settlement.

5 Wholly owned operations only.

6 Assuming the election of all Board nominees at Magna's annual meeting of shareholders on May 4, 2026, the percentage of women on the Board will be 33% (40% three-year gender parity average as of 2025).

2025 Key ESG Ratings & Recognition

Key ESG Ratings

94th Percentile

109 Awards focused on quality received from

customers in 2025.

2025 Industry & Customer Recognition

At Magna we are committed to making a difference through our products and processes, as well as continuing to demonstrate care and concern for our people and the communities in which they live. Magna was recognized as one of Canada's Most Responsible Companies for 2025 by Newsweek/Statista. The award recognizes select companies from among Canada's 700 largest private and public companies across 13 industries for their commitment to the climate, social welfare and responsible governance.

Magna's Climate Change Commitment

We recognize the reality of climate change and its impact on the planet. As a result, we are focused on doing the right things today so that our corporate interests do not come

at the expense of the viability of life for the generations that follow. Although combating climate change requires a collective global response, Magna is determined to play its

part in addressing this existential threat to our planet. In 2024, we received approval by the SBTi of Magna's near-term and net-zero emission reduction targets and the verification by SBTi of Magna's net-zero science-based target by 2050.

The details of Magna's net-zero commitment are outlined in Section 2.1.1 of this Sustainability Report.

PRODUCT

Delivering Solutions for a Better Tomorrow

Designing, engineering, manufacturing and delivering innovative product solutions for our customers, which achieve shared goals of reduced weight, lower fuel consumption and reduced carbon emissions.

PROCESS

Minimizing Our Environmental Impact

Optimizing and innovating our manufacturing processes for resource and input efficiency, as well as product quality;

Enhancing the energy efficiency of our plants and transitioning our operations to 100% renewable energy by 2030 to achieve our SBT requirement to reduce scope 1 and 2 emissions by 42% from a

2021 SBT baseline;

Engaging our supply chain to reduce Scope 3 emissions 25% by 2030 from a

2021 SBT baseline;

Staying focused on our net-zero commitment to reduce Scope 1, 2 and 3 emissions 90% by 2050 from a 2021 SBT baseline.

PEOPLE

Benefitting Our Teams

and Communities

Treating our employees fairly and looking out for their health, safety and general well-being;

Serving as a good community partner, particularly in the communities in which our employees live and work; and

Enhancing the sustainability of our supply chain with respect to human rights and working conditions through communication, monitoring, and where necessary, corrective action.

Summary Metrics Introduction Environmental Social Governance Sustainability Metrics Annex

Report Structure & Boundary

This Sustainability Report aims to provide our stakeholders with a better understanding of how we approach the creation of sustainable, long-term value and our management of sustainability-related risks. The report has been structured to align with the Task Force on Climate-related Financial Disclosures ("TCFD") and its replacement standard the International Sustainability Standards Board ("ISSB")

IFRS S1 and S2 Climate Related Disclosures Standards. We also align with the Sustainability Accounting Standards Board's ("SASB") Auto Parts accounting standard, where possible; and include key disclosures initially completed in 2024, and reassessed in 2025, that are aligned with the European Sustainability Reporting Standard ("ESRS"). This includes, an outline of the results of our ESRS-aligned double materiality assessment ("DMA"), and disclosure of the scenarios utilized to complete qualitative and quantitative climate scenario analysis. While this report may not currently provide stakeholders with all the information sought through the ISSB,

SASB, and ESRS frameworks; we continue

to evolve and enhance our disclosure as our

collection and validation of the applicable data improves. While the ISSB and SASB Auto Parts frameworks primarily address climate-related factors, this Sustainability Report aims to go beyond such items to give stakeholders a better understanding of the broad range of environmental, social and governance ("ESG")

Governance

Strategy

Risk Management

Metrics and Targets

initiatives that define our approach to sustainable value creation. The boundary of this disclosure reflects activities from Magna's 2025 reporting year which is January 1, 2025 to December 31, 2025 and includes all 330 operating divisions, unless otherwise indicated.

Summary Metrics Introduction Environmental Social Governance Sustainability Metrics Annex

Governance

• Corporate culture

Social

• Working conditions (own workforce and value chain)

• Equal treatment and opportunities for all (own workforce)

• Other work-related rights (own workforce and value chain)

• Personal safety of consumers and/or end-users

Environment

• Climate change adaptation

• Climate change mitigation

• Energy

• Fuel efficiency

• Water

• Direct impact drivers of biodiversity loss(2)

• Resource inflows, including resource use

• Resource outflows related to products and services

Double Materiality Assessment

Magna has conducted a comprehensive DMA in alignment with the European Union's ("E.U.") Corporate Sustainability Reporting Directive ("CSRD") and the ESRS. The DMA evaluates how our operations and value chain could impact people and the environment (impact materiality) and identifies sustainability issues with potentially significant financial implications for the

Company (financial materiality). This process helps identify impacts, risks, and

Impact Materiality

How a company's operations and value chain impact people and/or the environment.

Financial Materiality

Sustainability issues with potentially significant financial implications on the company.

i

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o

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t

I

n

s

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d

opportunities ("IROs"), and assess their materiality.

s

t

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O

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1Certain topics, such as cybersecurity and anti-competitive practices, did not meet applicable threshholds under our DMA methodology. Nonetheless, they

remain significant priorities for Magna and our activities in these areas are disclosed in this Sustainability Report.

2This category addresses biodiversity, including deforestation as well as phytosanitation.

Magna's DMA aligns with the CSRD and enhances transparency and accountability in our sustainability reporting. The DMA will also help further focus our sustainability risk management activities and inform relevant strategic priority areas.

We reviewed the structure of our business and the outcome of the 2024 double materiality assessment in 2025. It was determined that there were no material changes that would warrant completing an in depth DMA in the current reporting year.

Our DMA was led by an internal team in collaboration with a third-party consulting firm and followed four steps:

1. Sustainability Governance
   
   

   1. Board Oversight

      Climate-related and other sustainability issues are typically considered by the Board at least annually through the Board's strategic planning process.

      1. GNSC and TOCC Roles

         The Board carries out its duties in part through standing committees composed solely of

         Magna's Board of Directors is the company's highest decision-making body, except to the extent certain rights have been reserved for shareholders under applicable law or Magna's articles of incorporation or by-laws. As such, the Board is responsible for the overall stewardship of the company by: supervising the management of the business and affairs of Magna in accordance with the legal requirements set out in applicable company law (Business Corporations Act (Ontario)), as well as other applicable law; and, jointly with Management, seeking to create long-term shareholder value. The Board operates under a written Board Charter, in addition to applicable law, our articles of incorporation and by-laws. The Board Charter, which has been

         filed with securities regulatory authorities on

         SEDAR+ (https://www.sedarplus.ca), and is available in the Leadership & Governance section of Magna's website (https://www.magna.com), delineates Board oversight responsibilities including with respect to a number of areas relevant to sustainability such as: corporate culture; corporate governance; strategy; risk; shareholder engagement; and fundamental corporate actions.

         The Board takes an integrated and coordinated approach to oversight (including climate-related issues). This includes oversight of:

         • the Company's corporate culture, including its commitment to innovation/R&D, as well as its overall approach to corporate governance;

         • long-term strategy, including sustainability

           strategy and near-term business plans;

         • fundamental corporate actions, including

           acquisitions/divestitures and capital allocation;

         • major corporate policies;

         • enterprise risk management, including

           sustainability risks and climate related issues;

         • our overall system of compensation of Executive Management, which drives desired management behaviours that are central to our climate strategy, including operational efficiency.

         • material public disclosures (including this

           Sustainability Report);

         • preparedness of the Company to comply with emerging sustainability/ESG related legislation; and

         • shareholder engagement, including on sustainability/ ESG topics.

           Typically, Magna's most senior corporate R&D executive identifies and analyses material trends impacting the automotive industry, including automotive and mobility trends arising from climate-related issues. Significant opportunities and risks are then addressed at the annual Board strategy meeting. Guidance, feedback and other outputs from the strategy meeting are

           incorporated and integrated into Operating Group business plans for the next business planning meeting. Climate and other sustainability issues may also arise before the Board in connection with its oversight of fundamental corporate actions such as review/approval of material acquisitions/divestitures, three-year business plans and capital expenditures.

           Additionally, the Board annually monitors our progress in reducing our carbon footprint and reviews/approves the company's material public disclosures, such as our Annual Information Form

           / Annual Report on Form 40-F incorporating this Sustainability Report. The Board also reviews/ approves other public disclosures such as our Fighting Against Forced Labour and Child Labour in Supply Chains Report ("Fighting Modern Slavery Report"), and reviews the Corporation's progress in preparing for emerging sustainability reporting, most notably the CSRD.

           independent directors. One such committee, the Governance, Nominating and Sustainability Committee ("GNSC"), supports the Board's oversight of the company's approach to sustainability and climate change issues,

           including alignment with Magna's overall strategy, stakeholder expectations, regulatory and voluntary frameworks, market norms and best practices. The GNSC assesses Magna's overall approach to reducing its carbon footprint, the effectiveness of our environmental compliance program, the Company's approach to human rights and supply chain due diligence, the continued effectiveness of the climate elements of the Company's ESG program, as well as Magna's actions to identify, monitor and mitigate any material risk exposures relating to such areas. The Board's Talent Oversight and Compensation Committee ("TOCC") also supports the Board's sustainability oversight activities by assessing Magna's approach to certain non-climate elements of sustainability, including its approach to advancing diversity and inclusion in our workplace, and occupational health and safety compliance, as well as Magna's actions to identify, monitor and mitigate any material risk exposures relating to such areas.

           
           
           

           Summary Metrics Introduction Environmental Social Governance Sustainability Metrics Annex

           Like the Board, each of the GNSC and TOCC maintains a written charter which outlines its specific roles and responsibilities. The GNSC and TOCC Charters have been filed on SEDAR+ and are available in the Leadership & Governance section of Magna's website (https://www.magna.

           com). Matters under the GNSC's responsibility include: corporate governance, sustainability, and other matters. The scope of the GNSC's oversight role with respect to sustainability includes climate-related issues generally, as well as related elements such as environmental

           management and compliance. As Magna defines "sustainability" in a broad and inclusive manner to include areas that go beyond climate-related issues, the GNSC's role also extends to matters such as supply chain sustainability. The GNSC periodically reviews Magna's policies, practices and public disclosures relating to sustainability topics, and makes recommendations to the Board regarding such items.

           During 2025, the GNSC received updates, among other things, on Magna's enterprise risk management program, Magna's evolving sustainability and ESG strategy, including the ESG Reporting Overview, ESG regulatory developments, ESG ratings and rankings performance, and the Fighting Modern Slavery Report.

           In addition, the GNSC reviewed, provided input into, and approved the organization's Sustainability Report and other governance-related disclosures, including Board and Committee Charters and Proxy Circular segments. The Committee also received reporting relating to Magna's environmental compliance through the Annual Environmental

           Report and engaged in discussions on the future of ESG at Magna.

           The TOCC's responsibilities include: talent management and succession planning, executive and incentive compensation, employee health and safety, and other matters.

           During 2025, the TOCC received updates on, among other things, Magna's occupational health and safety program through the Annual Health & Safety Update, ongoing leadership development initiatives, and the company's human resources and talent management strategy, including HR strategy and priorities, culture and employee engagement, and HR complaints and investigations.

      2. Other Board Committees

In addition to the GNSC and TOCC, the Board maintains two other standing committees - the Audit Committee and the Technology Committee. While neither of these committees have specific sustainability responsibilities, each may have

a role with respect to sustainability risks and opportunities that arise indirectly out of the committee's primary role and responsibilities.

Magna's Audit Committee supports the Board through its oversight of financial and audit-related matters, including financial risks and disclosures. To the extent that climate-related or other sustainability risks are or could be financially material, the Audit Committee would be involved through its consideration of the financial statement or other disclosure of the nature and scale of the risk.

During 2025, the Audit Committee received updates on, among other things, Magna's Ethics and Legal Compliance Program, and the annual review of the Ethics & Legal Compliance Charter.

The Technology Committee supports the Board's oversight duties by advising it on technology trends, related opportunities and risks, R&D and innovation, and technology-focused acquisitions, as well as the alignment between the company's technology and its strategic priorities. As such, the scope of the Technology Committee's role includes products and processes that seek to realize opportunities created by climate-related challenges. In this regard, the Technology Committee engaged in "deep dive" reviews

of technology trends, opportunities and risks, including large castings technology landscape, integrated systems, powertrain electrification trends, and autonomous mobile robot technology and market. In addition, the Technology Committee reviewed Magna's R&D/innovation initiatives in relation to Magna's overall strategy.