Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Governance

Environmental Achievements

• Exceeded 2020 operational environmental goals
• All manufacturing facilities ISO 14001 certified for environmental management systems
• Established waste recycling programs, some achieving zero waste to landfill
• Six locations LEED certified with efficiency measures including solar panels, solar water heaters, rainwater collection, and solar tube lighting
• >80% of 2019 revenue from electric, hybrid, and emissions-reducing combustion parts

Social Achievements

• 75% improvement in global workforce accident total recordable incident rate (TRIR) over the last decade
• Eight locations earned CEO Safety Excellence Award for 1 million consecutive hours without a recordable incident
• First global annual Safety Day in 2019
• $2.8 million donated in 2019, supporting over 580 charitable activities and nearly 63,000 volunteer hours
• Received numerous awards for diversity, employee health, and workplace endeavors, including Forbes’ America’s Best Employers 2019, 2020 Bloomberg Gender Equality Index, and Newsweek’s America’s Most Responsible Companies 2020

Governance Achievements

• Ultimate sustainability oversight by the Board of Directors
• Strategy Board approves strategy, goals, and resources
• Commitment to continuous reporting against SASB and GRI standards
• Goal to assess at least 80% of high-impact and high-risk suppliers
• Launched Quality Award program in 2020

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Plans to update supplier agreements to include minimum sustainability performance standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: ISO 14001

Sustainable Products & Innovation

• Electric, hybrid, and emissions-reducing combustion parts

Awards & Recognition

• Forbes’ America’s Best Employers 2019
• 2020 Bloomberg Gender Equality Index
• Healthiest 100 Workplaces in America
• Newsweek’s America’s Most Responsible Companies 2020
• Detroit Free Press’s Top Workplaces

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Social responsibility
• Governance

Environmental Achievements

• 17% reduction of scope 1 and scope 2 greenhouse gas emissions intensity from a 2015 baseline (28% for the company’s operations prior to the Delphi Technologies acquisition)
• 85% of company revenue in 2020 came from electric and emissions-reducing hybrid and combustion products

Social Achievements

• Expanded unconscious bias awareness training across leadership teams
• Global gender pay equity study showed that, on average, women received 98.7% of the compensation compared to men. In the U.S., minorities on average received 99.8%+ of compensation as compared to non-minorities.
• 56% improvement in total recordable incident rate since 2015
• Nine sites received the 2020 CEO Safety Excellence Award
• $2.8 million and 18,793 hours donated to charitable activities

Governance Achievements

• Launched the BorgWarner Quality Award

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact

Mitigation Strategies

• Implemented numerous protocols and safety measures
• Temporary pay reductions for executives
• Global policy enabling flexible hours and remote working
• Safe Restart Task Force
• Supply Chain Risk Council
• $100,000 donation to Project Hope Campaign

Supply Chain Management

Supplier Audits: Aiming for at least 80% of high-risk and high-impact suppliers to complete a self-assessment questionnaire

Responsible Procurement

• Holistic strategy surrounding supplier sustainability, including communicating expectations, identifying and developing sustainability-related metrics, and updating supplier manual and terms and conditions

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Governance

Environmental Achievements

• Reduced overall energy consumption by 13% versus 2021
• 88% of 2022 sales from clean and emissions reducing products
• Kicking off workstreams dedicated to reducing Scope 3 emissions by 25% by 2031 versus a 2021 baseline

Social Achievements

• Promoting an inclusive workforce through numerous initiatives, including campus partnerships, scholar programs, second chance hiring programs
• Upskilling our workforce through specialized programs such as “Power to Evolve”

Governance Achievements

• Formally submitting targets to reduce Scope 1, 2, and 3 emissions to the Science Based Target Initiative (SBTi)

Climate Goals & Targets

Environmental Challenges

• Challenges we will face as we seek to achieve our environmental, social, and governance targets, including carbon neutrality and Scope 1, 2, and 3 emissions goals

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Science Based Target initiative (SBTi)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electrification products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Sustainability
• Workforce Development
• Renewable Energy
• Waste Reduction

Environmental Achievements

• Reduced Scope 1 & 2 greenhouse gas emissions by 32% from a 2021 baseline
• 48% increase in renewable energy usage since 2022
• Achieved a 92.8% waste diversion rate at tracked sites

Social Achievements

• Filled 64% of leadership positions through internal placements
• Invested more than $3.6 million in employee training and development
• Performed above all benchmarks on employees’ sense of inclusion and belonging

Governance Achievements

• Achieved an 81.6% completion rate with relevant suppliers for its sustainability assessment questionnaire

Climate Goals & Targets

Environmental Challenges

• Challenges in achieving environmental, social, and governance targets, including carbon neutrality and Scope 1, 2, and 3 emissions goals
• Difficulty in forecasting demand for electric vehicles
• Challenges associated with rapidly changing technologies
• Supply disruptions

Mitigation Strategies

• Engaging supply chain management and engineering teams to advance the company’s goal of reducing Scope 3 emissions 25% by 2030
• Installing or expanding solar power installations at nine facilities
• Investing in employee training and development

Supply Chain Management

Supplier Audits: 81.6% of suppliers responding

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Sustainable Products & Innovation

• product portfolio enabling efficient powertrain electrification for hybrids and battery electric vehicles