- BorgWarner has received official certificate of validation for its near-term science-based targets
- BorgWarner commits to reduce Scope 1 and Scope 2 GHG emissions 85% and Scope 3 GHG emissions 25% by 2030 from a 2021 base year
- The Scope 3 reduction target was modified to align with the latest guidelines from SBTi for a well-below 2°C pathway
- Significant headway has been made toward the Scope 1 and Scope 2 target, and specific initiatives have been launched to reduce Scope 3
AUBURN HILLS, Mich., Aug. 31, 2023 /PRNewswire/ — BorgWarner announced today that the Science Based Targets initiative (SBTi) has validated its targets to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions 85% by 2030 from a 2021 base year, and to reduce absolute Scope 3 GHG emissions 25% by 2030 from a 2021 base year.
BorgWarner’s Scope 1, 2 and 3 near-term targets were formally submitted for validation to the SBTi in December 2022. Since then, BorgWarner has accelerated its target for Scope 3 emissions reduction of 25% from 2031 to 2030 in alignment with SBTi’s latest guidelines for a well-below 2°C pathway.
“Our environmental stewardship and laser focus on sustainability spans the breadth of our business – from the products we make and the materials we use to the suppliers we work with and our operational practices,” said Volker Weng, Vice President of BorgWarner Inc. and President and General Manager, BorgWarner Drivetrain and Battery Systems, Environmental Sustainability Lead. “As part of that focus, we are dedicated to meeting our Scope 1, 2 and 3 emissions targets and are proud to have them validated by Science Based Target initiative, fortifying the direction we’re headed and the positive impact we’re making in the world’s transition to eMobility.”
BorgWarner’s Charging Forward strategy will play a pivotal role in reducing Scope 3 emissions, as the portfolio shifts toward eMobility products. However, to further lower emissions to meet its Scope 3 target, BorgWarner has launched workstreams focusing on product and supply chain. From a product perspective, the company is expanding its circularity efforts, such as remanufacturing and use of recycled materials, and placing a greater emphasis on lightweighting to further enhance its electrification portfolio. Within the supply chain, BorgWarner is working to enhance its green material sourcing and supplier contributions to its goals. As part of this initiative, BorgWarner is incentivizing its partners to have GHG reduction targets through its new supplier scorecard.
In addition to its near-term goals, BorgWarner is actively working to reduce even further by 2035, surpassing 85% reduction of Scope 1 and Scope 2 emissions. Its pathway to get there includes investing in energy-efficient processes in its plants, incorporating renewable energy sources and utilizing a decarbonization toolbox to implement best practices for minimizing energy and emissions. As of year-end 2022, the company can report that significant progress has been made toward its Scope 1 and 2 emissions goals, with a 24.4% reduction already achieved since 2021. A part of this success was due to a significant increase in renewable energy use in 2022 and energy reduction initiatives, with employee incentives tied to energy intensity reduction.
To learn more about BorgWarner’s sustainability activities, read its 2023 Sustainability Report here: www.borgwarner.com/company/sustainability.
About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. Today, we’re accelerating the world’s transition to eMobility – to help build a cleaner, healthier, safer future for all.
Forward-Looking Statements: This 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 are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this 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 most recently filed Annual Report on Form 10-K (“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 under 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 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: supply disruptions impacting us or our customers, such as the current shortage of semiconductor chips that has impacted original equipment manufacturer (“OEM”) customers and their suppliers, including us; commodity availability and pricing, and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; competitive challenges from existing and new competitors including OEM customers; the challenges associated with rapidly changing technologies, particularly as relates to electric vehicles, and our ability to innovate in response; uncertainties regarding the extent and duration of impacts of matters associated with the COVID 19/coronavirus pandemic, including additional production disruptions; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential disruptions in the global economy caused by Russia’s invasion of Ukraine; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that the spin-off transaction will not achieve its intended benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the 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; fluctuations in interest rates and foreign currency exchange rates; 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, or governmental investigations, including related litigation; future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; impacts from any potential future acquisition or disposition transactions; and the other risks 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/or Quarterly Report on 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 release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.
SOURCE BorgWarner
