Engineer inspecting production equipment at an industrial facility.

GOVERNANCE

Ethics, Integrity, and Compliance

We are committed to conducting business with integrity, transparency, and respect for the law. Ethical conduct is foundational to who we are and shapes every interaction with our colleagues, customers, suppliers, regulators, and the communities we serve.

Employee listening attentively during a training session.

Employee in a conference room listening during a training session.

Building Knowledge Through Global Training

We expanded the reach and depth of our global compliance training program in 2025. Key to this, our Compliance Office and Legal Department delivered in-person and virtual training at several locations worldwide, giving employees the opportunity to engage directly with the CCO on real-world ethics and compliance challenges.

Supply Chain Responsibility

In 2025, we shifted our focus from tracking supplier participation to further embedding sustainability into how we prioritize risks, engage with suppliers, and make sourcing decisions.

By improving our data governance processes, applying spend-based prioritization, and integrating sustainability factors into our enterprise-wide risk mapping framework, we enhanced our ability to identify, assess, and manage supply chain risks.

Red freight truck travelling along a highway.

74%

of in-scope direct and aftermarket suppliers completed the Sustainability Self-Assessment Questionnaire (SAQ)

~15%

average SAQ year-over-year score improvement by our Top 100 suppliers

95%

of in-scope direct suppliers completed the Conflict Minerals Reporting Template (CMRT), reflecting strong alignment with our due diligence expectations

~10%

increase in suppliers covered by our risk-based monitoring and oversight process following the acquisition of SEM

Haul truck transporting material at an open-pit mining site.

Responsible Sourcing and Conflict-Free Materials

We are committed to ensuring materials are free from conflict-related risks. In 2025, 95% of our in-scope direct material suppliers completed the Conflict Minerals Reporting Template (CMRT), reflecting strong alignment with our due diligence expectations.

3P PHINIA Partnership Program

In 2024, we launched 3P – a recognition program that is designed to evaluate supplier performance using tangible criteria.

3P strengthens supplier relationships by honoring a select group of top-performing direct material suppliers for excellence in performance, collaboration, and sustainability alignment.

In 2025, we expanded the 3P program to our aftermarket and ignition systems supply base. More than 50 suppliers received 3P recognition based on 2025 performance, more than double versus 2024.

PHINIA employees and suppliers posing together at the 3P global supplier recognition awards event.

Product Quality and Safety

At PHINIA, we seek to provide products and services that meet or exceed customer expectations in quality and safety performance. Our dedication to performance and quality standards paired with reliable capacity and delivery commitments underpins our success.

Customer Satisfaction

Our goal is to consistently provide products and services that meet or exceed customer expectations and applicable customer requirements.

We strive to satisfy customer requirements throughout the product life cycle.

Our employees are committed to the company's Key Quality Principles.

Quality Products

All employees are responsible for the quality of their work.

Our leaders take an active role in promoting the importance of quality.

Suppliers are valuable sources of design, cost reduction, and quality improvement ideas. We treat them as partners, with respect and integrity.

Continual Improvement

We believe continual improvement is core to achieving success.

When mistakes occur, we will act urgently and with integrity to identify, correct and prevent reoccurrence of the problem.

We strive to improve our business continually in quality, cost, and reliability.

2025 Customer Awards and Certifications

Data Protection and Cybersecurity

Our cybersecurity and data protection programs are shaped by regulatory requirements, past incidents, and evolving industry standards. We periodically update these programs based on our enterprise risk management (ERM) assessments, third-party audits and independent reviews, tabletop exercises, and other processes.

We are committed to strong data privacy standards and processes that protect individuals and their personal data. We collect and process personal data only to the extent necessary and with explicit consent when required. As generative artificial intelligence (GenAI) tools become more prevalent, we have published a GenAI policy providing clear guidance on acceptable use.

A key part of our strategy for managing cybersecurity risks is the ongoing assessment and testing of our policies, processes, and strategies through audits, assessments, tabletop exercises, threat modeling, vulnerability testing, and other exercises that evaluate the effectiveness of our controls and oversight and identify where they can improve. We engage third-parties to audit and independently review our cybersecurity measures, information security control environment, and operating effectiveness at least annually.

Close-up of a person working on a laptop displaying computer code related to cybersecurity.

Manufacturing employees carrying out quality inspection on a production line.

“Ethical conduct is the foundation on which we build trust with our customers, employees, regulators, and other stakeholders.”

Robert Boyle, Senior Vice President, General Counsel and Secretary, Sustainability Steering Committee member

Local Stories, Global Impact_Governance

STONEHOUSE, UK: Technical Problem-Solving and Improvement

Beginning in 2022, we accelerated improvement efforts across PHINIA by partnering with Shainin, a globally recognized quality and process problem-solving firm.

In 2025, we facilitated six training sessions as part of the Red X program — an advanced methodology for solving technical problems that is widely used by leading automotive manufacturers and their suppliers.

Approximately 90 employees were trained and over 60 attained Shainin certifications, with the 2025 Dorian Award for Bottom Line Improvement being awarded to our Stonehouse, United Kingdom manufacturing site by Shainin LLC.

Engineer writing inspection notes down inside a factory.

BLOIS, FRANCE: Aerospace Quality Management Certification

In 2025, our Blois, France facility successfully completed the implementation and certification to EN 9100 – the premier aerospace quality management standard. This is the first PHINIA plant to receive such recognition as we expand our aerospace and defense business.