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Sustainability

PHINIA's commitment to corporate responsibility is embedded in our values and how we do business.

We recognize that managing environmental, social and governance (ESG) risks and opportunities is integral to our aspirations of advancing sustainability today, with the goal of powering a cleaner tomorrow.

ESG Oversight

We have established a framework to manage our ESG risks and opportunities. Our Board of Directors maintains ultimate oversight of our ESG-related programs. Specifically, it has designated responsibility to certain committees:   

 

Corporate Governance Committee reviews the Company’s sustainability strategy, policies, and procedures. It also analyzes ESG risks and opportunities, including stakeholder feedback on ESG topics. The Corporate Governance Committee also ensures that there is ESG expertise on the Board.  

Compensation Committee oversees human capital management, including diversity, equity, and inclusion. It also assesses whether ESG goals and milestones, if appropriate, are effectively reflected in executive compensation.  

Audit Committee provides oversight of the quality and integrity of the accounting, auditing, financial reporting, and risk management practices of the company. This includes assessing compliance with ESG-related disclosure requirements. 

We have formed an ESG working group composed of senior leaders across our organisation to coordinate and set aspirations for our ESG-related environmental, human capital, and supply chain initiatives

To identify our environmental, social and governance priorities we are undergoing a formal materiality assessment process to inform our sustainability program and commitments. We look forward to sharing more as we advance this process. 

 

Safety

Ensuring the safety of our employees is a top priority. We are committed to maintaining and continuously improving our safety performance. PHINIA maintains a comprehensive, world-class safety management system implemented in every manufacturing facility around the world. It is aligned to the ISO 45001 Health and Safety Management System standard and 90% of our facilities are certified to the ISO 45001 standard

Our safety management system measures leading safety indicators, integrating detailed metrics into safety scorecards. Engaging employees at every level requires ongoing training and prevention initiatives, performing risk assessments and inspections, sharing best practices, hosting safety conferences, and sponsoring recognition programs. We require our global facilities to report injuries and illnesses according to OSHA standards, in addition to other reporting requirements in their local jurisdictions. 


Diversity, Equity, and Inclusion (DE&I) 

We believe that diversity brings strength and dynamism to our organization, and we strive to create an equitable and inclusive environment where all employees are respected and valued. We are dedicated to promoting a culture of inclusion and acceptance, which starts at the top and extends to all levels of our organization. We are committed to fostering diversity in our workforce and creating an environment where everyone feels welcome and valued regardless of race, gender, sexual orientation, religion, ethnicity, disability, or any other protected class.

We will continue to work to ensure that all employees are provided with equal opportunities and can work together in a respectful and safe environment. We are committed to creating a workplace where everyone can contribute to their fullest potential and be respected for their unique perspectives. We are committed to building a culture where everyone is encouraged to bring their full selves to work and to make their voices heard.  

Our Chief Human Resources Officer (CHRO) is responsible for the development and implementation of our DE&I programs and initiatives, supported by our executives, HR Leaders, and cross-functional employees. Ultimate responsibility for diversity at PHINIA lies with our CEO, while the Board monitors our initiatives and performance.  

Product Quality

 

Ensuring product quality, safety and reliability is core to our business. All of our manufacturing and production facilities that supply to OEMs are International Automotive Task Force (IATF) 16949 or ISO 9001 quality management system certified.

Our Quality Board is our strategic body formed of senior managers that drives our quality programs and standards across all of our facilities. Our leaders take an active role in promoting a quality culture – through metric analysis, customer quality reviews, supplier quality reviews, layered audits, program reviews, and other communication tools. 

As part of our quality management system, all sites are required to have a quality policy that includes details on regular employee training on product safety, monitoring of product reliability and performance, quality testing and incident investigation, and corrective actions. We implement our key quality principles through a commitment to meeting all applicable requirements, including statutory, regulatory, and customer-specific requirements. If nonconformance occurs, we will act urgently and with integrity to identify, contain, correct, and prevent any recurrence of the problem.  

 

Cybersecurity

As part of our overall risk management system and processes, we assess, identify, and manage material risks from cybersecurity threats through our enterprise risk management process.

We generally approach cybersecurity threats through a cross-functional, multilayered approach, with the goals of: (i) identifying, preventing, and mitigating cybersecurity threats to the Company; (ii) preserving the confidentiality, security, and availability of the information that we collect and store for use in operating our business; (iii) protecting the Company’s intellectual property; (iv) maintaining the confidence of our customers, suppliers, other business partners and employees; and (v) providing appropriate public disclosure of cybersecurity risks and incidents when required.

Our cybersecurity and data protection policies, processes and strategies are informed by regulatory and business requirements, our prior experience addressing cybersecurity attacks and incidents (including with our former affiliates) and industry practices, and are periodically adjusted based on the results of assessments conducted through our ERM practices, third-party audits and independent reviews, and other processes.

For more information regarding the Company's cybersecurity risk management, strategy, and governance policies and processes, please refer to Part I, Item 1C. Cybersecurity of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Data Privacy 

We are committed to implementing robust data privacy standards that protect individuals and their personal data, including of our employees, customers, and suppliers. Furthermore, we are committed to obtaining user data through lawful and transparent means, with explicit consent where required, and to collecting and processing data limited to the stated purpose. Personal information can be changed in some IT systems by data subjects, and, for other systems, data subjects can request personal information to be erased, rectified, completed, or amended, as required by law. Third-party contractors that we share personal data with must adhere to and comply with all relevant data protection and security laws, respective regulation, and our data privacy, retention, and protection policies. 

 

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PHINIA Environmental Statement

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PHINIA Conflict Minerals Statement

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PHINIA Supply Chain Due Diligence Statement

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