BorgWarner
BWA
Consumer Discretionary
2
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
BorgWarner's Teamsters-represented workers went on strike citing unsafe working conditions at its facility. Workers reported safety failures and contract violations serious enough to warrant a picket line.
BorgWarner has been implicated in significant, long-running environmental contamination linked to its historical operations. The company was a defendant in thousands of toxic tort lawsuits filed beginning in 2001 concerning PCB contamination at a site associated with Kuhlman Electric Corporation, a former subsidiary. This litigation indicates a legacy of pollution requiring extensive legal and potentially remedial action.
Separately, BorgWarner was charged by the SEC with violations of reporting, books and records, and internal accounting controls provisions of federal securities laws. While not a direct environmental penalty, such regulatory failures can indicate broader governance weaknesses in managing operational risks, including environmental compliance. The company's connection to the automotive supply chain also links it to major industry environmental scandals, such as the Volkswagen emissions cheating episode, which caused operational and reputational spillover effects across the sector.
Research Sources
2 organizations
Related Exclusions
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.