AUBURN HILLS, Mich.,
June 15, 2021 /PRNewswire/
-- BorgWarner, a company focused on delivering innovative and
sustainable mobility solutions for the vehicle market, has released
its 2021 Sustainability Report, "Evolving For All," detailing the
company's recent sustainability accomplishments and showcasing
short- and long-term goals for environmental stewardship, social
responsibility and governance.
"We create sustainable value by making mobility cleaner and more
efficient, aligning the interests of our customers, shareholders
and citizens of the planet, and enabling us to lead the
electrification of the low carbon economy of the future," said
Frédéric Lissalde, President and CEO, BorgWarner, Inc. "We also
create high-quality jobs, promote a diverse, inclusive workforce
and are close to achieving gender pay parity."
The comprehensive report covers several key elements, including
BorgWarner's sustainability strategy and management, key
performance indicators, COVID-19 response, integration of Delphi
Technologies and more. To read BorgWarner's complete 2021
sustainability report, "Evolving For All," visit
borgwarner.com.
COVID-19 response
In response to the pandemic,
BorgWarner implemented numerous protocols and safety measures to
help ensure the protection of its employees. To mitigate financial
impact to the business, the Strategy Board, Board of Directors and
hundreds of company leaders took temporary pay reductions. To
support its employees, a global policy enabling flexible hours and
remote working was put in place and safe behaviors and personal
health guidance were communicated regularly.
Furthermore, BorgWarner established a Safe Restart Task Force to
identify and disseminate return to work procedures, and it formed a
Supply Chain Risk Council to guide the company in identifying
potential risks to the company's business. The company also donated
$100,000 to the Business Roundtable's
Project Hope Campaign in the U.S. as well as other organizations
globally that were providing PPE to frontline healthcare
workers.
Environmental stewardship: creating a cleaner, more
energy-efficient world
For decades, BorgWarner has focused
on creating technologies that improve vehicle efficiency, emissions
and performance. In 2020, the company earned 85% of its revenue
from electric and emissions-reducing hybrid and combustion
products. The strategic acquisition of Delphi Technologies expanded
the company's power electronics offerings and enhanced the
company's goal of maintaining the majority of revenue from clean
energy technologies. By 2030, BorgWarner projects it will receive
45% of its revenue from products for electric vehicles. In
addition, BorgWarner expects combined research and development
(R&D) and capital spending for eProducts to be greater than
$3 billion over the next five years,
with eProducts approaching 50% of R&D spend before acquisitions
by 2025.
The company has taken its commitment to the environment a step
further by committing to its operations being carbon neutral on
scope 1 and 2 emissions by 2035, extending its goal to reduce
carbon emissions relative to sales from 2015 to 2030 by 50% and
energy use relative to sales by 37%. Over the last five years,
BorgWarner has achieved a 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). The report expands on the company's commitment to the
environment by quantifying indirect scope 3 product-in-use
greenhouse gas emissions from vehicle use of products and
estimating that such emissions will decline significantly as the
company accelerates its electrification strategy.
Social responsibility: living the BorgWarner
beliefs
The company's five core beliefs – inclusion,
integrity, excellence, responsibility and collaboration – were
refreshed and reintroduced company-wide in 2020 to help employees
better understand and embrace BorgWarner's corporate culture and
company values. Inclusion is a belief that plays a big role in many
of the programs and policies that have been implemented at
BorgWarner. As an example, the company's unconscious bias awareness
training was expanded across leadership teams in 2020 and will be
rolled out to all employees this year. Additionally, employee
resource groups that are focused on inclusion and fostering a sense
of belonging, continue to be promoted.
Among the company's recent social responsibility undertakings, a
third-party consultant was brought in to conduct an independent pay
equity analysis in 2020 of the company's legacy BorgWarner
workforce. The global gender pay equity study showed that, on
average, women received 98.7% of the compensation compared to men.
The analysis also showed that in the U.S., minorities on average
received 99.8%+ of compensation as compared to non-minorities. The
company has committed to continuing to evaluate and address
discrepancies related to pay equity and has an annual salary review
process in place to fulfill this commitment.
Throughout the year, the company was steadfast in minimizing its
total recordable incident rate, which has improved 56% since 2015.
Nine of its sites received the 2020 CEO Safety Excellence Award in
2020 for working one million hours and a minimum of 12 consecutive
months without a recordable incident along with other safety
performance measures. BorgWarner also celebrated its second annual
Global Safety Day.
Every year BorgWarner gives back to organizations centered
around issues most important to its employees, including education,
economics, environment and equity. Including pandemic-related
donations, BorgWarner participated in more than 444 charitable
activities, with the company and its employees donating
$2.8 million and 18,793 hours of
their time. Notably, a $34,000
donation was given to the city of Seneca,
South Carolina, following the tornado that struck the
community and BorgWarner's facility on April
13, 2020. This donation to the Tornado Relief Fund was used
to restore power to the homes of elderly citizens and as financial
support for others impacted in the community.
BorgWarner has announced donation goals of $3.5 million and 40,000 volunteer hours in 2021.
The company also doubled its company employee donation match
program maximum to $10,000 per
employee per year beginning in 2021.
Governance: partnering with and reporting to
stakeholders
BorgWarner's Board of Directors has ultimate
oversight over sustainability efforts considering and assessing
economic, social and environmental risks and opportunities as part
of its decision-making process. The Strategy Board approves
sustainability-related strategies and goals, while providing
resources to meet performance targets.
In 2020, the company launched the BorgWarner Quality Award to
further instill a quality culture and recognize excellence by
creating healthy competition around quality performance amongst
plants. The overall winner of the 2020 Quality Award was the plant
in Changnyeong, South Korea.
Additional recognition was given to plants in Tianjin, China, Ramos Arizpe, Mexico and Ithaca, New York, USA, all of which displayed
outstanding performance across production quality, launch quality
and warranty.
BorgWarner is working to encourage its suppliers to promote
sustainable business practices as well. To gauge suppliers' current
sustainability practices, the company is aiming to have at least
80% of its high-risk and high-impact suppliers complete a
self-assessment questionnaire, which is audited by a third-party.
In addition to the survey, BorgWarner is putting together a
holistic strategy surrounding supplier sustainability, with goals
of better communicating its expectations, identifying and
developing sustainability-related metrics, and updating its
supplier manual and terms and conditions to reflect its updated
requirements.
About BorgWarner
BorgWarner Inc. (NYSE: BWA) is a
global product leader in delivering innovative and sustainable
mobility solutions for the vehicle market. Building on its original
equipment expertise, BorgWarner also brings market leading product
and service solutions to the global aftermarket. With manufacturing
and technical facilities in 99 locations in 24 countries, the
company employs approximately 50,000 people worldwide. For more
information, please visit borgwarner.com.
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,"
"outlook," "plans," "potential," "predicts," "project," "pursue,"
"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 Annual Report on Form 10-K for the year
ended December 31, 2019 ("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 in 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:
uncertainties regarding the extent and duration of impacts of
matters associated with COVID-19, including additional production
disruptions; the failure to realize the expected benefits of the
acquisition of Delphi Technologies PLC that the Company completed
on October 1, 2020; the failure to
promptly and effectively integrate acquired businesses; the
potential for unknown or inestimable liabilities relating to
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; commodities
availability and pricing; supply disruptions; fluctuations in
interest rates and foreign currency exchange rates; availability of
credit; our dependence on key management; 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, tariffs, in the countries in which we operate; impacts
from any potential future acquisition or divestiture transactions;
and the other risks, including by way of example, pandemics and
quarantines, 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 in our most recently-filed 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/borgwarner-publishes-2021-sustainability-report-showcases-significant-achievements-and-high-reaching-goals-301312477.html
SOURCE BorgWarner