MASHINIi

BorgWarner Inc.

BWA.US | Manufacture of parts and accessories for motor vehicles

BorgWarner Inc. is a global product leader in delivering innovative and sustainable mobility solutions for the vehicle market. The company designs, manufactures, and sells engineered automotive parts and systems primarily for powertrain applications. Its products include turbochargers, eBoosters, eT...Show More

Ethical Profile

Mixed.

BorgWarner Inc. presents a mixed ethical profile, notably with a 2024 CEO pay ratio of 473 to 1 against a median employee compensation of $39,730. In September 2024, over 700 Teamsters went on strike for fair wages; reports suggest BorgWarner allegedly planned to discontinue health insurance for striking workers. The strike concluded with a 21% wage increase over four years and a $5,500 bonus. On the positive side, BorgWarner targets carbon-neutral operations by 2035, achieving a 32% reduction in Scope 1 and 2 GHG emissions. 87% of 2023 revenue came from electric vehicle and emissions-reducing products. It also reports 99% pay equity for women and 100.9% for minorities in similar roles. Historically, BorgWarner incurred $31 million in penalties since 2000, including a notable $29 million environmental fine in 2005.

Value Scores

Better Health for All10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-20
-100100
Fair Trade & Ethical Sourcing-30
-100100
Honest & Fair Business20
-100100
Kind to Animals0
-100100
No War, No Weapons-40
-100100
Planet-Friendly Business-30
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech10
-100100
Zero Waste & Sustainable Products-20
-100100

Better Health for All

10

BorgWarner's core business, automotive parts, has an indirect impact on health primarily through vehicle emissions. The company is actively mitigating these negative health externalities, with 87% of its 2023 revenue derived from electric vehicle and emissions-reducing hybrid and combustion products.

1
This focus is supported by significant investment, with approximately 66% of R&D spend and 61% of capital expenditures in 2023 allocated to eProduct projects.
2
The company has achieved a 32% reduction in Scope 1 and 2 greenhouse gas (GHG) emissions from a 2021 baseline
3
and has SBTi-validated goals to reduce these emissions by 85% and Scope 3 GHG emissions by 25% by 2030.
4
Products sold in 2023 are estimated to prevent millions of metric tons of CO2e over their lifetimes.
5
However, 13% of 2023 revenue came from transfer cases and low-efficiency starters and alternators, which do not directly impact fuel efficiency.
6
The company renovated a primary health center supporting over 60,000 people in India.
7
BorgWarner offers comprehensive health benefits, including free preventive care, and mental health training sessions for employees, with 400 participants in 2023.
8
The company has a Global Privacy and Cybersecurity program, with 93.6% of salaried employees completing annual cybersecurity awareness training.
9

Fair Money & Economic Opportunity

0

BorgWarner Inc. is an automotive parts manufacturer and does not offer lending, insurance, or deposit services to consumers. Consequently, the provided articles do not contain specific, concrete data points relevant to the KPIs under the 'Fair Money & Economic Opportunity' value, which primarily assesses financial institutions. Information regarding employee benefits, general community investments, or product-related data (e.g., IoT for fan systems) does not directly address the quantitative thresholds for financial inclusion, pricing, fees, lending compliance, or wealth-building outcomes for financial service customers. While community investment figures of $3.1 million in 2024

1
and $3.4 million in 2023
2
are mentioned, the absence of annual pre-tax profit figures prevents the calculation of the required percentage for profit reinvestment.

Fair Pay & Worker Respect

-20

BorgWarner's CEO-to-median employee pay ratio was 473:1 in 2024, with median employee compensation reported at $39,730.

1
By the end of 2023, the company achieved pay equity of 99% for women and 100.9% for minorities in similar roles.
2
Approximately 1.75% of the global workforce, representing 700 employees out of 39,900, are covered by collective bargaining agreements at one facility, following a strike and contract ratification in September 2024.
3
During this strike, BorgWarner announced plans to discontinue health insurance for striking employees, offering COBRA coverage.
4
The company has received the Great Place to Work Certification for three consecutive years
5
and was named one of the 2023-2024 Best Companies to Work For by U.S. News & World Report.
6
It has also been recognized in the Human Rights Campaign Foundation’s Corporate Equality Index for LGBTQ+ workplace equality for three consecutive years
7
and the Bloomberg Gender-Equality Index for four consecutive years.
8

Fair Trade & Ethical Sourcing

-30

BorgWarner has a minimum procurement budget of 5% directed to Minority Business Enterprise (MBE) suppliers in the US.

1

Honest & Fair Business

20

BorgWarner maintains a robust whistleblower policy, featuring a 24/7 anonymous hotline available in over 300 languages, supported by an independent third-party service.

1
The system provides a confidential issue access number and password for tracking report status, and the policy encourages employees to report unethical practices without fear of retaliation.
2
The company also has a comprehensive anti-corruption framework, including a Compliance Management Program led by a Chief Compliance Officer.
3
This program mandates annual employee training, with over 90% of employees completing ethics training in 2024.
4
An Insider Trading Policy is also disseminated annually to applicable employees, with periodic reviews and specific guidelines for trading blackout periods.
5

Kind to Animals

0

BorgWarner Inc. is an automotive parts manufacturer, and its core business operations do not typically involve animal-derived products, animal testing, or animal agriculture. The provided articles, primarily summaries of the company's sustainability reports, focus on environmental, social, and governance aspects such as GHG emissions reduction, renewable energy usage, and waste diversion, without mentioning any direct animal welfare initiatives or metrics. Therefore, most KPIs are scored as N/A. While one facility received a Wildlife And Industry Together (W.A.I.T.) certification for considering wildlife needs in land management

1
, this recognition does not provide measurable biodiversity impact, species recovery, or habitat restoration metrics required to score the 'wildlife_conservation_impact' KPI, leading to its omission.

No War, No Weapons

-40

BorgWarner Inc. does not directly engage in arms manufacturing or military contracts.

1
However, its products, primarily for combustion, hybrid, and electric vehicles, could potentially be used indirectly in military contexts, though this is not their primary market.
2
The company has no significant engagement in peace initiatives or conflict resolution advocacy.
3
There is no evidence of defense assets to divest or exposure to controversial weapons.

Planet-Friendly Business

-30

BorgWarner's targets to reduce absolute Scope 1 and 2 greenhouse gas emissions by 85% and Scope 3 emissions by 25% by 2030, from a 2021 base year, have been validated by the Science Based Targets initiative.

1
The company aims for carbon-neutral operations by 2035.
2
In 2023, BorgWarner achieved a 32% reduction in Scope 1 and 2 greenhouse gas emissions from its 2021 baseline.
3
The company also reported a 92.8% waste diversion rate at tracked sites
4
and increased renewable energy usage by 48% since 2022 through solar power installations at nine facilities.
5
To address its supply chain impact, BorgWarner partnered with Manufacture 2030 to measure and reduce its supply chain carbon footprint.
6

Respect for Cultures & Communities

0

BorgWarner provides global compliance reporting mechanisms, including phone hotlines and websites, for reporting violations of its Supplier Code of Conduct.

1
This code expects suppliers to respect local communities and consider vulnerable groups.
2
These are general compliance mechanisms, not explicitly designated as community-specific, and no percentage of operational sites with such mechanisms is provided.

Safe & Smart Tech

10

BorgWarner has reported no data breach incidents, and preventative measures blocked 66.3 million policy violations and 1.5 million security threats in 90 days.

1
The company integrates AI with a focus on ethical governance, employing AI tools to identify and mitigate algorithmic biases.
2
A platform monitors and controls GenAI usage, preventing data loss and oversharing, and provides daily reports on employee CoPilot usage.
3
Mandatory cybersecurity training is in place, including security awareness training for GenAI usage and best practices.
4
A platform is used to block unauthorized data sharing and user interactions with AI apps, and no incidents of unauthorized data use are reported.
5
The company's data privacy policy outlines user rights for access, correction, deletion, and data portability, and a platform allows for granular control over user access to applications.
6
BorgWarner's data privacy policy references compliance with GDPR, and they have strong data privacy measures in compliance with GDPR and CCPA, with no regulatory actions, violations, or fines mentioned.
7

Zero Waste & Sustainable Products

-20

In 2023, the company achieved a 92.8% waste diversion rate from landfills and incinerators at tracked sites, exceeding its 85% goal.

1
91% of products sold were recyclable in 2023 and 2024.
2
Approximately 37% of input materials in 2023 were from recycled or remanufactured sources.
3
The Drivetrain and Battery Systems business has embedded a design checklist into its product development process for new products, directing teams to consider circularity across materials selection, production, usage, and recycling feasibility.
4
Waste reduction initiatives include a guideline for manufacturing facilities to reduce and redirect waste, collaboration between Bellwood and Heidelberg plants to divert 13 metric tons of leader paper annually, and a remanufacturing program that has kept over 24,000 metric tons of materials out of landfills over nearly 30 years.
5
No waste disposal violations or citations were mentioned in the 2022, 2024, or 2025 sustainability reports, nor for the Suzhou facility in 2022.
6
The company has a target to achieve an 85% waste diversion rate by 2030.
7

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.