BorgWarner Inc. (BWA) — ESG & Values Scores

Environment story

BorgWarner presents mixed environmental credentials. The company operates in automotive parts supply with a growing eProducts portfolio (18% of 2025 revenue) targeting electric and hybrid vehicles, indicating strategic alignment with decarbonization trends. However, critical environmental disclosures are incomplete. Scope 1, 2, and 3 emissions data are not provided in available filings, and no verified net-zero target year is disclosed. The company acknowledges exposure to greenhouse gas regulation risks and climate change impacts on operations and supply chain. Environmental liabilities exist from historical operations and potentially responsible party designations at hazardous waste sites under CERCLA. The lack of transparent emissions reporting and absence of a credible net-zero commitment result in substantial score reduction despite product portfolio positioning.

Criticisms on file

Potential environmental liabilities from hazardous waste sites. Company and predecessors identified as potentially responsible parties under CERCLA at various sites; cleanup costs typically allocated among responsible parties but company could face greater liability.
Source: BWA 10-K Item 1A Risk Factors; Note 21 Contingencies referenced
Undisclosed Scope 1, 2, and 3 emissions. No emissions metrics provided in 10-K, preventing quantitative assessment of climate impact or progress toward targets.
Source: BWA 10-K Management Discussion & Analysis; Environmental Audit section
Exposure to climate regulation risks acknowledged. Company recognizes that greenhouse gas regulation could increase electricity costs, restrict natural gas access, require emission allowances, and raise raw material costs.
Source: BWA 10-K Item 1A Risk Factors: 'Our operations may be affected by greenhouse emissions and climate change and related regulations'

Disclosed initiatives

eProducts Revenue Growth

eProducts revenue grew from $2.0 billion (14% of total) in 2023 to $2.6 billion (18% of total) in 2025, reflecting organic investment in electric and hybrid vehicle technologies.

Signals strategic pivot toward cleaner powertrains but does not represent direct operational decarbonization.
Product Portfolio Diversification

Company maintains balanced portfolio across combustion (82%), hybrid, and electric vehicle support, reducing dependency on any single technology.

Hedges against EV adoption volatility but may reduce urgency of decarbonization commitment.

Social story

BorgWarner demonstrates moderate social performance with documented union engagement but limited diversity transparency. Approximately 13% of U.S. workforce is unionized with one domestic collective bargaining agreement (expires September 2028) and international unionization at certain facilities. No documented union-suppression activities or major strikes within 24 months are evident from available filings. However, CEO-to-median-worker pay ratio, workforce diversity metrics (gender/ethnicity), and leadership diversity percentages are not disclosed in 10-K, preventing assessment against benchmark standards. The company emphasizes attraction and retention of skilled workforce but provides no quantitative DEI commitments or outcome data. Supply chain human rights practices are not addressed in disclosed documents.

Criticisms on file

Lack of diversity disclosure. CEO-to-median-worker pay ratio, workforce gender/ethnicity representation, and leadership diversity percentages are not disclosed in 10-K, preventing quantitative assessment.
Source: BWA 10-K Management Discussion & Analysis
Supply chain human rights not addressed. No disclosed policies on forced labor, conflict minerals, modern slavery, living wage commitments, or supply-chain audits in available filings.
Source: BWA 10-K environmental and social sections
Exposure to customer labor disputes. Company sensitive to labor relations at major OEM customers (Ford, Stellantis, General Motors); UAW strikes in 2023 caused production halts; future labor actions could disrupt operations.
Source: BWA 10-K Item 1A Risk Factors: 'We are sensitive to the effects of our major customers' labor relations'

Disclosed initiatives

Workforce Attraction and Retention Programs

Company identifies need to hire, retain and develop highly skilled and diverse management team and workforce worldwide, with particular emphasis on engineering, technical and software capabilities.

Recognition of diversity and talent gaps but no specific metrics or programs disclosed.
Collective Bargaining Agreement

Domestic collective bargaining agreement in place for one New York facility, expiring September 2028. International facilities also unionized.

Stable labor relations on disclosed facilities; however, risk identified from customer-level labor disruptions (e.g., UAW strikes affecting major OEM customers).

Governance story

BorgWarner governance structure shows mixed compliance signals. Board independence percentage, share structure classification, and detailed lobbying spend are not disclosed in available 10-K excerpts, limiting independent verification. The company operates as a standard public corporation structure without identified dual-class voting complications. No active litigation regarding antitrust, consumer fraud, or product safety is disclosed in the provided excerpts. However, the company is engaged in significant commercial disputes, including a $120 million VAT refund lawsuit against spin-off entity PHINIA (partially settled for $78 million in October 2025), indicating governance friction. The company faces ongoing tax audits and potential tax assessment risks. CERCLA environmental liability exposure and product warranty/recall risks suggest adequate legal frameworks but material contingent liabilities.

Criticisms on file

PHINIA spin-off litigation and settlement. Company sued spin-off entity PHINIA September 2024 seeking $120 million VAT refunds; settled October 2025 for $78 million plus amended tax matters agreement. Company recorded $40 million net charge (reduction of VAT receivables, elimination of liabilities, legal fees).
Source: BWA 10-K Item 7 MD&A 'Lawsuit Against PHINIA'; Item 1A Risk Factors 'Potential liabilities pursuant to the spin-off of PHINIA'
Tax audit exposure. Company disclosed ongoing tax assessments from various taxing authorities at varying appeal/litigation stages; management characterizes some assessments as potentially erroneous or arbitrary interpretations of local tax law.
Source: BWA 10-K Item 1A Risk Factors: 'Changes in tax laws or tax rates by taxing authorities and the outcome of tax audits'
Undisclosed board independence and lobbying spend. Board independence percentage not disclosed in available excerpts; annual lobbying expenditure not quantified, preventing assessment of regulatory influence activities.
Source: BWA 10-K (governance metrics not provided in excerpted sections)
CERCLA environmental liability. Company and predecessors identified as potentially responsible parties at hazardous waste sites; cleanup costs shared among responsible parties but company exposure unquantified.
Source: BWA 10-K Item 1A Risk Factors: 'We have been and are exposed to liabilities related to environmental... litigation and other claims'

Disclosed initiatives

Compliance Policies and Procedures

Company maintains internal policies and procedures for FCPA and anti-corruption law compliance; acknowledges risks of improper employee/agent conduct in international operations and recently acquired businesses.

Framework exists but company concedes vulnerability, particularly in post-acquisition integration.
Intellectual Property Protection

Company owns patents, trademarks, copyrights, and trade secrets; engaged in licensing arrangements. Recognizes enforcement risks in lower-IP-protection jurisdictions.

Active IP portfolio management but no quantified litigation or licensing dispute activity disclosed.

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

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