PHINIA, a leader in premium fuel systems, electrical systems and aftermarket solutions, released its 2023 Sustainability Report in August which highlighted the company’s contributions to powering a better tomorrow. The report sets a benchmark for future progress across environmental, social and governance initiatives, while emphasising PHINIA’s focus on driving long-term value for stakeholders.
“We are proud to share our inaugural Sustainability Report following our launch as an independent company in July 2023,” said Brady Ericson, President and Chief Executive Officer, PHINIA. “While aspects of PHINIA may be new, our commitment to sustainability has long been embedded in our business and culture. As we reflect on this foundational year, we recognise the importance of establishing our sustainability strategies that form the bedrock for long-term performance.”
The report unveils PHINIA’s initial sustainability priorities and framework, as well as the governance structure established to foster collaboration, engagement, and oversight of sustainability initiatives, including the formation of a Sustainability Council and Sustainability Steering Committee and the integration of Board-level oversight.
Highlights of the report also include:
- Investments to power a cleaner tomorrow: In 2023, PHINIA invested 78% of its R&D spend in fuel efficiency and alternative fuel technologies, with 30% dedicated to zero- and lower-carbon fuel systems. PHINIA also received its first major business award for a hydrogen fuel cell program application for medium-duty trucks, and secured a significant gasoline direct injection (GDi) program for light vehicle plug-in electric hybrid programmes.
- Design for environment: PHINIA is implementing a process to quantify and reduce the life cycle emissions for all significant new product development. The process will be used to calculate the air, water, and resource impacts of such new products across their lifecycle and optimise methods to reduce environmental impact.
- Environmental performance: PHINIA achieved a 4.8% annual energy consumption reduction across all sites through several energy efficiency projects. The Company also achieved a 9.9% annual reduction in carbon emissions through energy efficiency, footprint optimisation, and green energy sourcing initiatives.
- Supporting, engaging and developing employees: PHINIA demonstrated its commitment to empowering and supporting its employees through a variety of talent and development programs, health and safety initiatives, community engagement efforts, and equity, diversity, and inclusion (EDI) initiatives, including:
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- Women in Science and Engineering (WiSE), PHINIA’s first employee belonging group geared to fostering collaboration and empowerment amongst female talent in STEM roles
- Refinement of PHINIA’s global EDI strategy focused on empowering women, promoting intergenerational collaboration, leveraging cultural diversity, and cultivating the development of diverse teams
- Establishment of an EDI Council to drive progress on the Company’s EDI action plan
- Conducting Business Responsibly: PHINIA’s quality and safety awards recognise facilities that demonstrate excellence in this space. Ethics, compliance, and other training help employees to act responsibly, ethically, and in alignment with PHINIA’s Code of Ethical Conduct, core values, and other policies.
“We believe in making a positive impact through our business and actions,” continued Brady. “This report reflects our commitment to proactively advancing sustainability today, with the goal of powering a cleaner tomorrow through enhanced efficiency, innovative technologies, and responsible practices. We look forward to sharing our progress annually in future years and engaging with stakeholders on this collective responsibility.”
Here, The Manufacturer conducts a Q&A with Todd Anderson, Chief Technology Officer at PHINIA on the report and the company’s future sustainability journey.
What are some of the key takeaways of the 2023 sustainability report?
TA: At PHINIA, our 2023 Sustainability Report marks a pivotal moment as we solidify our commitment to powering a cleaner tomorrow. In our first year as an independent company, we directed 78% of our R&D investment towards fuel efficiency and alternative fuel technologies, with 30% specifically targeting zero- and lower-carbon solutions.
The report demonstrates PHINIA’s dedication to sustainability and how it is embedded in every aspect of our business, from product design to community engagement. Through the implementation of smart meters, solar power, equipment power utilisation controls, and compressed air strategies throughout our facilities, we are able to use data to monitor consumption and optimise energy use while maximising efficiency in energy generation.
We also achieved a significant milestone in hydrogen fuel system technology, adapting core fuel injection and control technologies for hydrogen use in both fuel cell and hydrogen internal combustion engine (H2ICE) applications. Its viability in medium-duty trucks has been demonstrated in a test we conducted in Blois, France, showcasing the H2ICE’s capabilities with a 1,056km, 12-hour, full payload roundtrip in challenging conditions.
What trends is PHINIA currently seeing with its sector and manufacturing more broadly?
At PHINIA, we recognise the manufacturing sector’s shift towards sustainability as a core operational principle. The growing regulatory pressure to reduce carbon emissions has driven innovation in both product design and manufacturing processes. Our focus is on developing more efficient and durable components and systems that extend the lifespan of vehicles and machinery, promoting a circular economy. We are also actively contributing to the industry’s transition to alternative fuels, particularly hydrogen fuel, to meet evolving global standards.
How key is sustainability to the future strategy of PHINIA?
Sustainability is not just a goal for PHINIA, it is a core value for our business and a driving force behind our strategy and operations. We integrate sustainability into our decision-making processes and governance structures to help ensure that our commitment to greater efficiency today and a cleaner tomorrow guides our actions.
We also develop our sustainability priorities and disclosures with a view to globally recognised standards and frameworks, including the Sustainability Accounting Standards Board (SASB), Task Force on Climate-Related Disclosures (TCFD), the Global Reporting Initiative (GRI), and CDP. Our sustainability efforts are designed to deliver long-term value to our stakeholders, and significantly contribute to creating a lower carbon mobility future.
How much of PHINIA’s future strategy is focused on alternative fuels?
Alternative fuels are crucial to the future of transportation and energy. PHINIA’s commitment is reflected in the 30% of our 2023 R&D investments dedicated to developing zero- and lower-carbon fuel systems, such as hydrogen, as well as ensuring current fuel systems are suitable with other alternative fuels, ethanol for example.
We are advancing H2ICE applications and demonstrating that alternative fuels can deliver high performance, especially in applications which require high power-density, continuous operating cycles, heavy load conditions, rapid refuelling speeds, and challenging environmental conditions. By leading in this space, we aim to provide lower carbon solutions to significantly reduce global carbon emissions and support the energy transition across industries.
Can you explain PHINIA’s strategy around people – EDI, women in manufacturing, etc.?
People are the heart of PHINIA’s success. Our equity, diversity, and inclusion (EDI) strategy is fundamental to fostering a collaborative and innovative work environment. Through initiatives like the Women in Science and Engineering (WiSE) programme, which includes chapters at many of our plants and technical centres worldwide, as well as mentorship opportunities, we actively support the professional growth of women and underrepresented groups in our workforce. We strive to develop a workforce that reflects the diversity of the communities we serve, and believe these efforts strengthen our ability to innovate and succeed in a competitive global market.
What does the future strategy of the company look like?
Looking ahead, PHINIA’s strategy focuses on advancing sustainability today while investing in lower carbon mobility and the alternative fuel technologies of the future. We are dedicated to reducing our environmental footprint and enhancing efficiency across our global operations, and our Environmental Statement acts as our guide for future goals. For instance, we have set targets for each of our manufacturing sites to achieve a 3.5% annual energy intensity reduction.
Our approach includes investing in research and development, fostering a diverse and inclusive workplace, and continuing to lead in the development of more sustainable solutions for the transportation and industrial sectors. Our vision is clear – to advance efficiencies today and power a cleaner, more sustainable tomorrow for generations to come.
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