- Progress aligned with company's Charging Forward strategy
aimed at a net-zero carbon emissions future
- Developing a Science Based Target Initiative greenhouse gas
emissions reduction goal, committing to a new 85% Scope 1 and Scope
2 emissions reduction goal by 2030, and determining most crucial
actions for CO2 emission reduction
- Goals set to advance workplace diversity, equity and
inclusion
- Power to Evolve training program aimed at transforming our
industry-leading automotive engineers into a cutting-edge team,
developing electric vehicle products
- Sustainable Supply Chain strategy and roadmap developed to
accelerate progress
AUBURN
HILLS, Mich., June 16,
2022 /PRNewswire/ -- BorgWarner has released its
2022 Sustainability Report, "Charging Forward Together,"
highlighting the significant steps taken toward meeting its
environmental stewardship, social responsibility and governance
(ESG) objectives and outlining additional goals the company has set
for this year and beyond. The Sustainability Report underscores
BorgWarner's commitment to accelerating the world's transition to
eMobility to help build a cleaner, healthier, safer future for
all.
![BorgWarner published its 2022 Sustainability Report, Charging Forward Together. Access the full report at borgwarner.com/company/sustainability. BorgWarner published its 2022 Sustainability Report, Charging Forward Together. Access the full report at borgwarner.com/company/sustainability.](https://mma.prnewswire.com/media/1840893/Borgwarner_sustainability_report.jpg)
"Our Beliefs of inclusion, integrity, excellence, responsibility
and collaboration are found in every aspect of our operations and
guide us as we work toward our vision of a clean, energy-efficient
world," said Frédéric Lissalde, President and CEO, BorgWarner, Inc.
"We are proud of the significant progress we have made in recent
years toward embracing sustainability in our culture and advancing
electrification efforts in everything we do. We look forward to
taking additional concrete steps in changing the world of mobility,
alongside our partners, customers, suppliers and communities toward
a brighter, cleaner and more inclusive future."
The annual Sustainability Report gives a holistic view of
BorgWarner's commitment to being a sector leader in sustainability,
addressing its refreshed sustainability strategy, investments and
acquisitions of companies to enhance its electrification
capabilities, diversity initiatives and more. Below are several key
data points and objectives noted in the 2022 report.
Environmental Stewardship: Create a Cleaner, More
Energy-efficient World
BorgWarner's business strategy, Charging Forward, is central to
the report, showcasing the company's alignment with and
contributions to a net-zero carbon emissions future and its target
of a 45% electric revenue mix by 2030. Currently, the company is on
track to generate more than 25% of its revenue from electrified
vehicle parts by 2025. Additionally, the company expects about 50%
of its R&D budget will be spent on eProducts in 2022 and to
exceed 50% by 2025.
While looking to achieve carbon neutrality in its operations by
2035, BorgWarner set a new interim goal to reduce its absolute
greenhouse gas (GHG) emissions for Scope 1 and Scope 2 emissions by
85%, compared to its 2021 emissions, by 2030. BorgWarner is also
developing a Science Based Target Initiative GHG emissions
reduction goal, and, as part of that process, will be estimating
its Scope 3 emissions and determining its most crucial actions for
GHG emission reduction.
To promote further advocacy and dedication to ESG at the highest
levels of the organization, BorgWarner has linked 50% of the
performance component of its executive long-term incentive plan
compensation with its Charging Forward goals by incorporating an
eProducts revenue mix metric.
Social Responsibility: Live the
BorgWarner Beliefs
As BorgWarner continues to advance diversity, equity and
inclusion (DEI) efforts to support the company's commitment to
creating an inclusive and sustainable workforce for the future, the
company has announced formal DEI goals in this year's report. By
2026, BorgWarner plans to have women account for 35% of its global
workforce and racially/ethnically diverse employees account for 30%
of its U.S. workforce. By that same year, the company plans to
achieve and maintain pay parity across all genders and races. On
average, women working at BorgWarner globally are currently
receiving 98.9% compensation of that received by men, with
racial/ethnic minorities in the U.S. receiving compensation of 99%
or more compared to compensation received by non-minorities. An
annual salary review process is in place to evaluate and address
discrepancies in pay, if identified. Finally, BorgWarner has set a
goal to achieve a score of 80% or above on a BorgWarner Beliefs
index from its employee engagement survey by 2026.
Developing and retaining talent continues to be an area of focus
for BorgWarner, as demonstrated by the more than 84,000 hours of
training received by salaried employees in 2021. The company also
launched Power to Evolve, a skills agility program for employees
that was created in partnership with leading universities in the
U.S. and Europe and provides a
fast track to transfer mechanical engineers to working on electric
drive systems, including batteries, inverters, motors and more.
BorgWarner believes in supporting its surrounding communities so
it comes as no surprise that even with the challenges of 2021, the
company's employees not only met but exceeded its giving goals with
efforts that supported over 400 charitable activities, including
STEM education, children in need and humanitarian efforts.
Governance: Partner with and
Report to Stakeholders
BorgWarner's Board of Directors exercises continued focus and
oversight of the company's ESG risks and opportunities. Among its
various governance activities, BorgWarner continued to focus on
promoting sustainability across its supply chain: the company saw
an approximate 35% increase in suppliers participating in the
Sustainability Self-Assessment Questionnaire, which asks suppliers
about key sustainability issues including human rights, health and
safety, environment, working conditions and business ethics.
To further accelerate progress related to supply base goals and
engagement, BorgWarner also developed a Sustainable Supply Chain
strategy outlining priority ESG topics along with a roadmap for
implementation. In 2022, the strategy will be expanded to include a
focus on evaluating existing and developing new supplier
expectations on material topics and incorporating them into the
company's sourcing process.
To read the complete report, please visit
www.borgwarner.com/company/sustainability.
About BorgWarner
For more than 130 years, BorgWarner has been a transformative
global product leader bringing successful mobility innovation to
market. Today, we're accelerating the world's transition to
eMobility — to help build a cleaner, healthier, safer future for
all.
Forward-Looking Statements: This press release may
contain forward-looking statements as contemplated by the 1995
Private Securities Litigation Reform Act that are based on
management's current outlook, expectations, estimates and
projections. Words such as "anticipates," "believes," "continues,"
"could," "designed," "effect," "estimates," "evaluates," "expects,"
"forecasts," "goal," "guidance," "initiative," "intends," "may,"
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"seek," "should," "target," "when," "will," "would," and variations
of such words and similar expressions are intended to identify such
forward-looking statements. Further, all statements, other than
statements of historical fact contained or incorporated by
reference in this press release that we expect or anticipate will
or may occur in the future regarding our financial position,
business strategy and measures to implement that strategy,
including changes to operations, competitive strengths, goals,
expansion and growth of our business and operations, plans,
references to future success and other such matters, are
forward-looking statements. Accounting estimates, such as those
described under the heading "Critical Accounting Policies and
Estimates" in Item 7 of our most recently-filed Annual Report on
Form 10-K ("Form 10-K"), are inherently forward-looking. All
forward-looking statements are based on assumptions and analyses
made by us in light of our experience and our perception of
historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
under the circumstances. Forward-looking statements are not
guarantees of performance, and the Company's actual results may
differ materially from those expressed, projected or implied in or
by the forward-looking statements.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Forward-looking statements are subject to risks and uncertainties,
many of which are difficult to predict and generally beyond our
control, that could cause actual results to differ materially from
those expressed, projected or implied in or by the forward-looking
statements. These risks and uncertainties, among others, include:
supply disruptions impacting us or our customers, such as the
current shortage of semiconductor chips that has impacted original
equipment manufacturer ("OEM") customers and their suppliers,
including us; commodities availability and pricing; competitive
challenges from existing and new competitors including OEM
customers; the challenges associated with rapidly-changing
technologies, particularly as relates to electric vehicles, and our
ability to innovate in response; uncertainties regarding the extent
and duration of impacts of matters associated with the COVID-19
pandemic, including additional production disruptions; the
difficulty in forecasting demand for electric vehicles and our
electric vehicles revenue growth; potential disruptions in the
global economy caused by Russia's
invasion of Ukraine; the ability
to identify targets and consummate acquisitions on acceptable
terms; failure to realize the expected benefits of acquisitions on
a timely basis including our recent acquisitions of AKASOL AG and
Santroll's light vehicle eMotor business and our 2020 acquisition
of Delphi Technologies PLC; the ability to identify appropriate
combustion portfolio businesses for disposition and consummate
planned dispositions on acceptable terms; the failure to promptly
and effectively integrate acquired businesses; the potential for
unknown or inestimable liabilities relating to the acquired
businesses; our dependence on automotive and truck production, both
of which are highly cyclical and subject to disruptions; our
reliance on major OEM customers; fluctuations in interest rates and
foreign currency exchange rates; our dependence on information
systems; the uncertainty of the global economic environment; the
outcome of existing or any future legal proceedings, including
litigation with respect to various claims; future changes in laws
and regulations, including, by way of example, taxes and tariffs,
in the countries in which we operate; impacts from any potential
future acquisition or disposition transactions; and the other risks
noted in reports that we file with the Securities and Exchange
Commission, including Item 1A, "Risk Factors" in our most
recently-filed Form 10-K and/or Quarterly Report on Form 10-Q. We
do not undertake any obligation to update or announce publicly any
updates to or revisions to any of the forward-looking statements in
this press release to reflect any change in our expectations or any
change in events, conditions, circumstances, or assumptions
underlying the statements.
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SOURCE BorgWarner