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BorgWarner's Scope 1, 2 and 3 Emissions Reduction Targets Validated by the SBTi

BWA | August 31, 2023

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.

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