Atmus Filtration Technologies Inc. (ATMU) — ESG & Values Scores

Environment story

Atmus demonstrates weak environmental governance and significant exposure to stranded-asset risk from the energy transition away from internal combustion engines. Scope 1, 2, and 3 emissions are undisclosed, and no net-zero target has been publicly announced. The company acknowledges in risk factors that 'substantially all of our net sales are related to internal combustion engine filtration products' and that the 'ongoing energy transition away from fossil fuels... could result in lower demand for current diesel or natural gas engines.' No verified decarbonization infrastructure investments are documented. Greenwashing risk is elevated: the company claims awareness of climate risks but provides no quantitative emissions data, no interim targets, and no supply-chain emissions disclosure. Long-lived asset impairment charges of $8.4M in 2025 suggest operational inefficiencies but do not constitute climate adaptation investment.

Criticisms on file

No disclosed Scope 1, 2, or 3 emissions; no net-zero target year disclosed; undisclosed climate reporting compliance status relative to TCFD or SEC climate rule proposals.
Source: ATMU 10-K, Item 1A Risk Factors; MD&A sections contain no emissions data, sustainability report reference, or climate commitment statement.
Substantial product-line exposure to stranded-asset risk: '~14% first-fit, ~86% aftermarket' revenue dependent on ICE-based OEM platforms. Largest customer Cummins has 2030 emissions reduction goals that may reduce demand for traditional filtration products.
Source: ATMU 10-K, MD&A 'Company Overview' and Risk Factors section 'Evolving customer needs and developing technologies may threaten our existing business.'
Long-lived asset impairment charges of $8.4M (2025) on 'idled machinery, equipment and fixtures' suggest operational contraction but lack transparency on root cause (capacity mismatch vs. deliberate decarbonization).
Source: ATMU 10-K, MD&A 'Results of Operations — Other operating expense, net' and Non-GAAP footnote (a).

Disclosed initiatives

Energy Transition Awareness

Company acknowledges risks from electrification, hydrogen, and fuel-cell technologies in risk factors; developing products for adjacent markets and alternate fuel filtration.

Minimal quantified impact; no verified R&D investment disclosed or product-line revenue from non-ICE filtration.
Regulatory Compliance Monitoring

Company states it monitors 'increasingly stringent environmental laws and regulations' but claims material compliance without specific audit evidence.

Social story

Atmus presents a mixed social profile with notable labor union presence and some governance transparency, but limited disclosure on diversity and human-rights practices. Approximately 53% of the ~4,500-person workforce is unionized across Mexico, Brazil, France, and Tennessee (Cookeville plant), with recent collective bargaining completed in Mexico and Brazil and upcoming renegotiations in February 2026. The company reports no major strikes or work stoppages in the past 24 months and maintains stable labor relations. However, CEO-to-median-worker pay ratio is undisclosed (penalty applied). Executive and board diversity is undisclosed; absent documented diversity above 30%, conservative penalty applied. Supply-chain human-rights audits are not mentioned; no forced-labor or conflict-minerals policies are disclosed. International operations in China, India, Mexico, and France introduce geopolitical and labor-law risk, particularly in developing economies. The company acknowledges 51% of ~355 technical employees work outside the U.S., creating potential oversight gaps in labor and human-rights compliance.

Criticisms on file

CEO-to-median-worker pay ratio not disclosed; unable to assess executive compensation alignment with worker welfare.
Source: ATMU 10-K, Item 1A Risk Factors and Compensation discussion sections contain no CEO pay or median-worker pay ratio disclosure.
Executive and board diversity percentages undisclosed; no diversity targets, EEO-1 disclosure, or formal DEI program documented.
Source: ATMU 10-K contains no proxy statement DEI section or diversity-related disclosures in available source documents.
No modern-slavery statement, forced-labor policy, or supply-chain human-rights audit disclosed; company operates in China, India, Mexico, and Brazil (higher-risk geographies for labor exploitation).
Source: ATMU 10-K Risk Factors and MD&A sections contain no human-rights due diligence, supplier audits, or conflict-minerals disclosures.
51% of technical workforce employed outside U.S. (India, China, France); potential gaps in enforcement of labor standards and worker-protection policies in developing economies.
Source: ATMU 10-K, Item 1A Risk Factors 'Our ability to attract and retain qualified personnel is critical to our success.'

Disclosed initiatives

Collective Bargaining Agreements

Agreements with unions in Mexico, Brazil, France, and Cookeville, TN plant. Cookeville agreement renegotiated February 2024, effective through February 29, 2028. Mexico and Brazil agreements expire December 2026–February 2027.

Provides wage and benefit protections for majority of workforce; demonstrates labor stability and formal union engagement.
Global Workforce Development

Company employs ~355 technical employees globally, with 51% in India, China, and France; emphasizes 'attraction and retention of qualified personnel' as critical success factor.

Global talent sourcing may improve innovation but raises oversight risk in jurisdictions with weaker labor protections.

Governance story

Atmus exhibits weak governance due to substantial related-party dependency on Cummins, high debt leverage, and moderate board independence. Post-separation (March 2024), Cummins retains a significant relationship through supplier agreements, though full ownership divestiture was completed. Board independence percentage is undisclosed; absent verification of >75% independence, conservative penalty applied. The company has not disclosed lobbying expenditures, PAC contributions, or antitrust/consumer-protection enforcement actions. Related-party risks are material: first-fit and aftermarket supply agreements with Cummins account for 18.8% of 2025 net sales, and the company explicitly acknowledges that 'terms of those agreements may not reflect terms that would have resulted from arm's-length negotiations between unaffiliated third parties.' Total debt of $570M (refinanced to $1.0B in January 2026) represents 3.2x trailing EBITDA, constraining financial flexibility. Dual-class share structure is not disclosed, and no evidence of antitrust or SEC consent decrees is documented. No shareholder proposals are mentioned in available source documents.

Criticisms on file

Board independence percentage not disclosed; unable to verify compliance with 75% independence target.
Source: ATMU 10-K contains no proxy statement governance section disclosing board composition or independence metrics in provided source documents.
Material related-party dependency: Cummins accounts for 18.8% of 2025 net sales under first-fit and aftermarket supply agreements negotiated during Cummins ownership. Company acknowledges 'terms of those agreements may not reflect terms that would have resulted from arm's-length negotiations between unaffiliated third parties.'
Source: ATMU 10-K, Risk Factors section 'Risks Related to Our Relationship with Cummins: We may have received better terms from unaffiliated third parties than the terms we received in our agreements with Cummins.'
No lobbying expenditures or PAC contributions disclosed; unable to assess political influence or regulatory advocacy positions.
Source: ATMU 10-K contains no lobbying disclosure or political contribution sections in provided source documents.
High financial leverage: $570M term loan outstanding (refinanced to $1.0B, January 2026) constrains strategic flexibility and increases default risk. All assets pledged as collateral; default could result in asset foreclosure.
Source: ATMU 10-K, Risk Factors section 'Risks Related to our Capital Structure: We have substantial indebtedness' and 'Substantially all Atmus' assets pledged as security...'; MD&A Liquidity and Capital Resources section.
No shareholder proposals, board recommendations, or activist engagement disclosed in provided source documents; insufficient data to assess governance contestation or shareholder activism.
Source: ATMU 10-K source documents do not include proxy statement or shareholder proposal sections.

Disclosed initiatives

Post-IPO Governance Independence

Separation from Cummins completed May 26, 2023 (IPO); full separation achieved March 18, 2024. Independent board and management team established post-IPO.

Transition to standalone governance reduces Cummins influence, but related-party supplier contracts retain material revenue dependency.
Debt Reduction and Refinancing

Term loan refinanced January 7, 2026: $600M facility (2023) increased to $1.0B to finance Koch Filter acquisition and refinance existing debt. Revolving facility increased from $400M to $500M.

Refinancing provides liquidity for acquisitions and debt management but increases total leverage and interest obligations.
Transition Services Agreement

Services provided by Cummins under transition services agreement ended September 2025, eliminating interim dependency on Cummins-provided administrative services.

Establishes full operational independence; completion of separation milestone.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Atmus Filtration Technologies 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 Atmus Filtration Technologies Inc. in the app for interactive charts and portfolio building.

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