PHINIA Publishes 2025 Sustainability Report

Key Terms

double materiality assessment regulatory

A double materiality assessment looks both at how environmental, social and governance issues can affect a company’s finances and at how the company’s actions affect the environment and society. Think of it as a two-sided checklist that shows risks and opportunities coming into the business (like weather damaging a house) and impacts going out from the business (like the house causing neighborhood flooding). Investors use it to judge financial risk, regulatory exposure, reputation and long-term value tied to sustainability performance.

scope 1 technical

Scope 1 are the greenhouse gas emissions a company produces directly from sources it owns or controls, like fuel burned in company vehicles, boilers, or on-site factories. Think of it as the smoke coming out of a business’s own chimney versus electricity it buys from the grid. Investors watch Scope 1 because these direct emissions can create regulatory costs, operational changes, and reputational risks that affect profitability and long-term value.

en 9100 regulatory

EN 9100 is a European quality management standard for companies that design, manufacture or service products for the aerospace, defense and space industries. It builds on the general ISO 9001 rules but adds industry-specific requirements for safety, traceability and regulatory compliance. For investors, holding EN 9100 is like having a certified playbook and quality inspection system: it signals lower operational and regulatory risk, smoother supply-chain access and greater likelihood of meeting contract and safety expectations.

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• PHINIA’s third annual Sustainability Report highlights meaningful progress across the Company’s environmental, social, and governance priorities, reinforcing our commitment to advancing sustainability across our people, products, and operations
• The 2025 report reinforces PHINIA’s disciplined approach to sustainability: rigorous measurement, consistent execution, and practical solutions that enable customers to advance PHINIA’s vision of a cleaner tomorrow

AUBURN HILLS, Mich.--(BUSINESS WIRE)-- PHINIA Inc. (NYSE: PHIN), a diversified, industrial supplier and global leader in the development of fuel systems, electrical systems, and aftermarket solutions, today published its third annual Sustainability Report, highlighting measurable progress and key initiatives across its environmental, social, and governance priorities during 2025.

Now in its third year as an independent company, PHINIA continues to invest in lower-carbon and zero-carbon technologies, circular economy principles, environmental stewardship, employee engagement and development, strong governance, and responsible business practices. The report demonstrates how PHINIA is embedding sustainability into its strategy and decision-making, while delivering innovative products and solutions that are designed to help customers enhance efficiency, reduce emissions, and navigate an increasingly diverse mobility landscape.

Key highlights from the 2025 Sustainability Report include:

• Lower-carbon and zero-carbon innovation: Dedicated approximately 85% of PHINIA’s R&D investment to technologies that enhance fuel efficiency and support alternative fuels. Achieved TÜV SÜD certification in Germany for hydrogen internal combustion engine (H₂ICE) retrofit technology, creating a pathway for commercial deployment.

• Circular economy and remanufacturing effectiveness: Through PHINIA’s Design for Environment (DfE) program, expanded lifecycle assessment training and capabilities to guide product-level sustainability improvements and further embed end-of-life considerations in product development. Increased reuse of core mass of manufactured material to 63% (up from 52% in 2024) at PHINIA's largest remanufacturing facility, with 93% of the remaining material recycled.

• Operational efficiencies and emissions reductions: Improved Scope 1 and 2 greenhouse gas (GHG) emissions intensity (mtCO₂e) by 35% compared to 2024 through lower energy consumption, reduced natural gas use, and increased green energy procurement, supporting PHINIA's target to reduce absolute Scope 1 and 2 GHG emissions by 50% by 2030 from a 2020 baseline.

• Reporting and risk assessment enhancements: Completed PHINIA's first enterprise-wide double materiality assessment, climate and nature risk assessments, and legal and compliance risk assessment, strengthening our reporting and strategic decision-making. Achieved first independent verification of Scope 1, 2, and 3 (Category 15) GHG emissions.

• Global workforce empowerment: Expanded employee development opportunities through 8,000+ online courses, 50+ technical and soft skill courses, 60+ new leader assimilation sessions, our inaugural PHINIA University Leadership Development Program, artificial intelligence (AI) learning, and other global career development opportunities.

• Employee engagement and well-being advancements: Conducted our employee pulse engagement survey and recorded a 72.4% response rate and 72.8% engagement score, confirming belief in our culture and trust in our leaders. Established the Global Well-Being Council, with a focus on physical, behavioral, financial, and social well-being initiatives.

• Responsible supply chain collaboration: Further integrated sustainability factors into supplier risk management, sourcing decisions, and risk mapping. 74% of in-scope suppliers completed sustainability self-assessments, the top 100 suppliers improved their sustainability scores by an average of 15% year-over-year, and 50+ suppliers were recognized through the PHINIA Partnership Program (3P) for excellence in performance, collaboration, and sustainability alignment.

• Quality improvements and EN 9100 certification: Achieved PHINIA’s first EN 9100 aerospace quality management certification, further strengthening our capabilities in the aerospace and defense sector. Continued investing in advanced quality training and continuous improvement programs.

"Our 2025 Sustainability Report demonstrates how sustainability is embedded in the way PHINIA innovates, operates, and creates long-term value for our stakeholders," said Brady Ericson, President and Chief Executive Officer, PHINIA. "From advancing lower-carbon and zero-carbon alternative fuel technologies to expanding circular economy principles, we are delivering practical solutions that help our customers improve efficiency, expand fuel choice, and reduce emissions today. We also made great progress across our people and operations by reducing our environmental footprint, investing in our employees, and strengthening responsible business practices. With disciplined execution and sound governance, we are building a more resilient PHINIA while driving a more sustainable future."

The full 2025 Sustainability Report is available at www.phinia.com/sustainability.

About PHINIA

PHINIA is a diversified, industrial supplier and global leader in the development of fuel systems, electrical systems, and aftermarket solutions, with a strong portfolio of trusted brands that includes DELPHI^®, DELCO REMY^®, and HARTRIDGE^™. With over 100 years of manufacturing expertise and industry relationships, PHINIA has approximately 12,500 talented employees and over 40 locations in 20 countries and is headquartered in Auburn Hills, Michigan, USA.

Our systems and solutions are designed to keep combustion engines operating at peak performance across a variety of applications: medium- and heavy-duty commercial vehicle (on-road vehicles used for commercial transport classified class 4-8, 14,001 pounds or heavier), light commercial vehicle (on-road vehicles used for commercial transport classified as class 1-3, 14,000 pounds or lighter), light passenger vehicle (on-road vehicles used primarily for carrying passengers), and off-highway, industrial, and other (including construction and agricultural machinery, vocational vehicles, marine, industrial applications, power generation, and aerospace and defense).

PHINIA’s service solutions include vehicle repair and replacement parts, offering both new and remanufactured products through the original equipment manufacturer dealer network and the independent aftermarket channel.

By delivering high-performance solutions today and investing in advanced technologies to unlock the potential of alternative fuels in contributing to lower carbon mobility, PHINIA is shaping a more efficient and sustainable future.

© 2026 PHINIA Inc. All Rights Reserved.

(DELCO REMY is a registered trademark of General Motors LLC, licensed to PHINIA Technologies Inc.)

Forward-Looking Statements: This press release and the 2025 Sustainability Report contain forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements are statements other than historical facts that provide current expectations or forecasts of future events based on certain assumptions and are not guarantees of future performance. Forward-looking statements use words such as “advance,” “anticipate,” “believe,” “continue,” “could,” “designed,” “deliver,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” and other words of similar meaning.

Forward-looking statements are subject to risks, uncertainties, and factors relating to our business and operations, all of which are difficult to predict and which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements. Risks, uncertainties, and factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: adverse changes in general business and economic conditions, including recessions, adverse market conditions, or downturns impacting the vehicle and industrial equipment industries; our ability to deliver new products, services, and technologies in response to changing consumer preferences, increased regulation of greenhouse gas emissions, and acceleration of the market for vehicles that do not require our products; competitive industry conditions; failure to identify, consummate, effectively integrate, or realize the expected benefits from acquisitions or partnerships; pricing pressures from original equipment manufacturers; inflation rates and volatility in the costs of commodities used in the production of our products; changes in U.S. and foreign administrative policy, including tariffs, changes to existing trade agreements and import or export licensing requirements, and any resulting changes in international trade relations; our ability to protect our intellectual property; failure of or disruption in our information technology infrastructure, including a disruption related to cybersecurity; our ability to identify, attract, retain, and develop a qualified global workforce; difficulties launching new vehicle programs; failure to achieve the anticipated savings and benefits from restructuring and product portfolio optimization actions; extraordinary events, including natural disasters or extreme weather events, fires or similar catastrophic events, political disruptions, terrorist attacks, pandemics or other public health crises, and acts of war; risks related to our international operations; the impact of economic, political, social, and market conditions on our business in China; our reliance on a limited number of original equipment manufacturer customers; supply chain disruptions, including due to U.S. and foreign government action, work stoppages, production shutdowns, and similar events or conditions; governmental investigations and related proceedings regarding vehicle emissions standards, including the ongoing investigation into diesel defeat devices; current and future environmental and health and safety laws and regulations; the impact of climate change and regulations related to climate change; liabilities related to product warranties, litigation, and other claims; compliance with legislation, regulations, policies, investigations, and legal proceedings and new interpretations of existing rules and regulations; and other risks and uncertainties described in our reports filed from time to time with the Securities and Exchange Commission.

We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260813736800/en/

IR contact:
Gordon Muir
Vice President & Treasurer
investors@phinia.com
+1 574-210-5713

Media contact:
Kevin Price
Global Brand & Communications Director
media@phinia.com
+44 (0) 7795 463871

Source: PHINIA INC