Arrow Electronics, Inc. (ARW) — ESG & Values Scores

Environment story

Arrow Electronics discloses no quantified Scope 1, Scope 2, or Scope 3 emissions data in the 10-K filing. No net-zero target year is stated. The company acknowledges environmental compliance obligations (EAR, waste disposal, hazardous materials, climate change impacts on supply chain) but provides no emissions reduction initiatives, renewable energy commitments, or decarbonization infrastructure investments. The 10-K mentions environmental remediation obligations from an acquisition but does not quantify scope or costs. Given the absence of any disclosed emissions baseline, reduction targets, or transition roadmap, and the presence of climate-related supply-chain exposure without mitigation detail, the environmental score reflects maximum deductions for undisclosed Scope 3, absent net-zero target, and lack of verified decarbonization initiatives. The company's exposure to semiconductor and IT distribution (energy-intensive supply chains) is material but unaddressed in disclosed environmental strategy.

Criticisms on file

Environmental remediation obligation from acquisition; ongoing liability for investigating and remediating contamination on currently or formerly owned/leased/operated property.
Source: ARW_10k.txt, Item 1A Risk Factors, Environmental Laws and Regulations section; Note 15 Contingencies referenced
No disclosed emissions data (Scope 1, 2, or 3) and no publicly stated net-zero target or climate transition plan.
Source: ARW_10k.txt, 10-K filing in its entirety; absence of ESG/sustainability report data

Disclosed initiatives

Environmental Compliance Framework

Company acknowledges subject to environmental laws regarding product disposal, hazardous materials, recycling, and climate change impacts; obligated to perform environmental remediation on acquired sites.

Social story

Arrow Electronics discloses limited social metrics. No CEO-to-median-worker pay ratio, workforce diversity percentages, or turnover rates are provided in the 10-K. The company acknowledges dependence on attracting and retaining key talent, with ongoing CEO transition (Interim President and CEO appointed September 2025, permanent search underway). The Operating Expense Efficiency Plan (multi-year restructuring announced 2024) includes workforce reductions and relocations, flagging potential labor relations, morale, and retention risks. No documented union-suppression activities or major strikes are disclosed in the past 24 months. No supply-chain human-rights audits, conflict-minerals disclosures, or labor-standards certifications are mentioned. The company states it must comply with customer and supplier environmental and human-rights standards but provides no detail on verification or remediation of identified hazards. Social score reflects absence of quantified diversity data, lack of disclosed labor relations history (neutral standing), and absence of supply-chain ethics audits or living-wage commitments.

Criticisms on file

Executive leadership transition: Interim President and CEO appointed September 2025; permanent CEO search ongoing. Disclosed risks: uncertainty, resource diversion, employee/customer/supplier uncertainty.
Source: ARW_10k.txt, Item 1A Risk Factors, Business Risks section; reference to management transition
Operating Expense Efficiency Plan workforce reductions may adversely impact morale, retention, and ability to attract skilled personnel; risks to operational targets and customer requirements.
Source: ARW_10k.txt, Item 1A Risk Factors, Business Risks section; Note 9 Restructuring referenced
No disclosed CEO-to-median-worker pay ratio, workforce diversity data, or labor relations history provided in 10-K.
Source: ARW_10k.txt, 10-K filing in its entirety; absence of compensation disclosure and EEO-1 data

Disclosed initiatives

Workforce Attraction and Retention Program

Company emphasizes reliance on key executive and employee talent for business execution; acknowledges need to attract, retain, motivate, and develop qualified personnel.
Operating Expense Efficiency Plan

Multi-year restructuring plan initiated 2024 including workforce reduction and relocation; designed to improve operational efficiency.

Acknowledged risks: decreased employee morale, difficulty hiring qualified employees, disruptions in operations, failure to maintain internal controls.
Supplier and Customer Standards Compliance

Company acknowledges customers and suppliers require adherence to specific environmental and human-rights standards.

No detail on verification mechanisms, audit frequency, remediation procedures, or supply-chain transparency.

Governance story

Arrow Electronics discloses no board independence percentage, share structure classification, or annual lobbying expenditure in the 10-K. The company does not mention dual-class voting structures, suggesting single-class common stock (positive inference). The company acknowledges subject to export controls (EAR), anti-corruption laws (FCPA), antitrust regulations, and privacy/cybersecurity compliance; no material active antitrust proceedings, SEC consent decrees, or significant privacy fines are disclosed in the 10-K, though the company notes past and potential future regulatory investigations. On October 8, 2025, three Chinese subsidiaries were added to BIS Entity List, then removed November 11, 2025, representing a near-term export control compliance issue. The company notes it is subject to EAR compliance risks and warns of penalties for non-compliance but does not disclose lobbying spend targeting environmental deregulation or consumer-protection rollbacks. No shareholder proposals or voting controversies are detailed in the provided excerpts. Governance score reflects absence of board-independence disclosure (assumed <75% due to lack of transparency), lack of lobbying spend transparency, recent export-control compliance incident, and general absence of governance detail; offset slightly by apparent single-class share structure.

Criticisms on file

Export control compliance incident: Three Chinese subsidiaries (Arrow Electronics (Shanghai) Co. Ltd. and others) added to BIS Entity List on October 8, 2025, restricting receipt of U.S. technology exports. Temporary authorization issued October 17, 2025; entities removed November 11, 2025. During restriction period, subsidiaries unable to receive shipments from suppliers and fulfill customer orders, adversely impacting Q4 2025 operating results.
Source: ARW_10k.txt, Item 1A Risk Factors, Regulatory and Legal Risks section; Export Control Laws and Regulations subsection
No board independence percentage, lobbying expenditure, or detailed governance structure disclosed in 10-K filing.
Source: ARW_10k.txt, 10-K filing in its entirety; absence of governance detail section
Company subject to evolving ESG and DEI regulatory requirements; January 21, 2025 executive order prohibits certain diversity, equity, and inclusion practices for federal contractors/subcontractors; non-compliance could jeopardize federal contractor status and revenue.
Source: ARW_10k.txt, Item 1A Risk Factors, Regulatory and Legal Risks section; Corporate Stewardship Expectations subsection
Company acknowledges ongoing cybersecurity threats and privacy incidents; no material impact disclosed to date, but potential for significant reputational, legal, and financial exposure.
Source: ARW_10k.txt, Item 1A Risk Factors, Cybersecurity, Privacy, and Technology Risks section

Disclosed initiatives

Export Control and Trade Compliance Framework

Company acknowledges subject to EAR, U.S. Customs regulations, OFAC regulations, and various trade laws; implements compliance monitoring for export/import activities and sanctions screening.
Anti-Corruption and Anti-Money Laundering Compliance

Company subject to U.S. Foreign Corrupt Practices Act (FCPA), domestic bribery statute, and anti-bribery/anti-money laundering laws; held liable for employee, agent, and third-party activities.
Cybersecurity and Data Privacy Governance

Company acknowledges subject to complex, evolving privacy and data-protection laws globally; reliance on internal systems for operations and financial data; ongoing cyber-attack risks.

Cybersecurity incidents have not had material impact to date; company notes inability to fully anticipate or prevent incidents; third-party service providers represent additional risk vectors.
Internal Controls and Financial Reporting

Company maintains systems for reliable financial reporting, asset safeguarding, and fraud prevention; subject to SEC and NYSE oversight.

Inherent limitations acknowledged; material weakness discovery could result in sanctions or investigations.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Arrow Electronics, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Arrow Electronics, Inc. in the app for interactive charts and portfolio building.

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