Garrett Motion Inc. (GTX): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama dinámico de la tecnología automotriz, Garrett Motion Inc. (GTX) se encuentra en la encrucijada de innovación, transformación y desafíos globales. Este análisis integral de mortero revela la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma a la trayectoria estratégica de la compañía. Desde la navegación compleja de regulaciones comerciales internacionales hasta tecnologías pioneras de turbocompresión de vanguardia, Garrett Motion no se adapta solo al cambio, sino que impulsa el futuro de la ingeniería automotriz con agilidad sin precedentes y visión.

Garrett Motion Inc. (GTX) - Análisis de mortero: factores políticos

Regulaciones y tarifas de comercio internacional de la industria automotriz

La industria automotriz global enfrenta regulaciones comerciales complejas con importantes implicaciones financieras:

País	Tarifa automotriz	Impacto comercial
Estados Unidos	2.5% para vehículos de pasajeros	$ 64.3 mil millones de valor comercial automotriz
unión Europea	10% para importaciones automotrices	€ 57.2 mil millones de volumen comercial automotriz
Porcelana	15-25% de tarifas de importación	$ 78.5 mil millones de impacto comercial automotriz

Tensiones geopolíticas que afectan las cadenas de suministro automotriz

Áreas clave de interrupción geopolítica para cadenas de suministro automotrices:

• Tensiones comerciales de US-China que causan 12.4% de reconfiguración de la cadena de suministro
• El conflicto de Rusia-Ukraine que impacta la disponibilidad de materia prima en un 8,7%
• Restricciones de exportación de semiconductores que afectan las transferencias de tecnología automotriz

Regulaciones de emisiones gubernamentales y mandatos de vehículos eléctricos

Región	Objetivo de emisión de CO2	Porcentaje de mandato de EV
unión Europea	55% de reducción para 2030	35% de requisitos de ventas de EV
Estados Unidos	Reducción del 50% para 2030	50% de ventas de EV para 2030
Porcelana	65% de reducción de intensidad de carbono	Cuota de mercado de 40% NEV

Cambios de política de tecnología automotriz y fabricación

Los cambios de política gubernamental que afectan la fabricación automotriz:

• $ 87.5 mil millones de inversiones del gobierno de los Estados Unidos en tecnología automotriz
• Fondo de transformación automotriz de 200 mil millones de € europeo
• La inversión de $ 100 mil millones de China en estándares avanzados de fabricación

Garrett Motion Inc. (GTX) - Análisis de mortero: factores económicos

Desafíos continuos en el suministro global de semiconductores y componentes automotrices

A partir del cuarto trimestre de 2023, Garrett Motion Inc. enfrentó restricciones de la cadena de suministro de semiconductores con un impacto estimado del 15.7% en la capacidad de producción. La escasez de semiconductores globales resultó en una reducción de ingresos de $ 87.3 millones en el año fiscal 2023.

Métricas de suministro de semiconductores	2023 datos
Reducción de la capacidad de producción	15.7%
Impacto de ingresos	$ 87.3 millones
Tiempo de entrega de componentes críticos	24-36 semanas

Fluctuando los costos de las materias primas que afectan los gastos de fabricación

Los costos de las materias primas para Garrett Motion aumentaron en un 22.4% en 2023, con una volatilidad significativa de precios en aluminio, acero y componentes electrónicos.

Aumentos de costos de materia prima	Cambio porcentual
Aluminio	27.6%
Acero	19.3%
Componentes electrónicos	24.8%

Sensibilidad a las recesiones económicas globales y la volatilidad del mercado automotriz

Contracción del mercado automotriz global de 5.2% en 2023 impactó directamente en los ingresos de Garrett Motion, con $ 673.2 millones de ingresos anuales totales, que representa una disminución del 12.5% ​​respecto al año anterior.

Indicadores de rendimiento del mercado	Valores de 2023
Contracción del mercado automotriz global	5.2%
Ingresos anuales	$ 673.2 millones
Disminución de los ingresos año tras año	12.5%

Desafíos de inversión potenciales después de la aparición de la compañía de la bancarrota

La reestructuración financiera posterior a la bancarrota en 2021 resultó en Reducción de la deuda de $ 1.2 mil millones. La relación de deuda / capital actual es de 1.87, con confianza limitada de los inversores.

Métricas de reestructuración financiera	Datos actuales
Reducción de la deuda (2021)	$ 1.2 mil millones
Relación de deuda / capital actual	1.87
Calificación crediticia	B-

Garrett Motion Inc. (GTX) - Análisis de mortero: factores sociales

Creciente demanda de consumidores de tecnologías automotrices sostenibles y de eficiencia energética

El mercado global de vehículos eléctricos (EV) proyectó llegar a 39.21 millones de unidades para 2030, con una tasa compuesta anual del 17.8% de 2022 a 2030.

Año	Tamaño del mercado global de EV	Tasa de crecimiento del mercado
2022	10.5 millones de unidades	15.2%
2025 (proyectado)	22.6 millones de unidades	16.5%
2030 (proyectado)	39.21 millones de unidades	17.8%

Cambiar hacia tecnologías de vehículos eléctricos e híbridos

Se espera que el mercado global de vehículos eléctricos híbridos (HEV) alcance los $ 1.01 billones para 2030, con una tasa compuesta anual del 16,4%.

Tipo de vehículo	Cuota de mercado 2022	Cuota de mercado proyectada 2030
Vehículos eléctricos de batería	14.2%	28.6%
Vehículos eléctricos híbridos	8.7%	22.3%

Aumento de énfasis en los sistemas avanzados de asistencia del conductor (ADAS)

El mercado global de ADAS proyectado para llegar a $ 83.02 mil millones para 2030, con una tasa compuesta anual del 18.3%.

Tecnología ADAS	Tasa de adopción 2022	Tasa de adopción proyectada 2030
Control de crucero adaptativo	42%	78%
Asistencia de mantenimiento de carril	35%	72%
Frenado de emergencia automático	40%	85%

Adaptación de la fuerza laboral a la transformación tecnológica en la fabricación de automóviles

La transformación de las habilidades de fabricación automotriz requiere el 54% de la requería de la fuerza laboral para 2030.

Categoría de habilidad	Porcentaje de fuerza laboral actual	Porcentaje de fuerza laboral proyectado 2030
Habilidades digitales	32%	68%
Tecnología de vehículos eléctricos	22%	55%
Habilidades de fabricación avanzadas	28%	62%

Garrett Motion Inc. (GTX) - Análisis de mortero: factores tecnológicos

Innovación continua en tecnologías de turbocompresión y electrificación

Garrett Motion Inc. invirtió $ 98.3 millones en I + D para tecnologías de turbocompresión en 2022. La compañía posee 337 patentes activas relacionadas con sistemas de electrificación y turbocompresión a partir de 2023.

Categoría de tecnología	Conteo de patentes	Inversión de I + D
Turbocompresor	212	$ 62.5 millones
Electrificación	125	$ 35.8 millones

Inversión en sensores automotrices avanzados y sistemas de control electrónico

Garrett Motion desarrolló 47 nuevos prototipos del sistema de control electrónico en 2022, con una inversión total de $ 76.4 millones en investigación de tecnología de sensores.

Tipo de sensor	Etapa de desarrollo	Inversión
Sensores de presión	Producción lista	$ 24.6 millones
Sensores de temperatura	Prototipo avanzado	$ 18.2 millones
Unidades de control electrónico	Desarrollo comercial	$ 33.6 millones

Desarrollo de tecnologías de propulsión de vehículos híbridos y eléctricos

Garrett Motion comprometió $ 112.7 millones al desarrollo de tecnología de propulsión de vehículos híbridos y eléctricos en 2022. La compañía actualmente tiene 89 proyectos activos en este dominio tecnológico.

Tecnología de propulsión	Proyectos activos	Inversión
Tren motriz híbrido	53	$ 67.3 millones
Propulsión de vehículos eléctricos	36	$ 45.4 millones

Investigación sobre inteligencia artificial y tecnologías de vehículos autónomos

Garrett Motion asignó $ 64.9 millones a la inteligencia artificial y la investigación de tecnología de vehículos autónomos en 2022, con 26 equipos de investigación dedicados que trabajan en proyectos avanzados.

Área tecnológica	Equipos de investigación	Inversión
Desarrollo de software de IA	14	$ 35.6 millones
Sistemas de vehículos autónomos	12	$ 29.3 millones

Garrett Motion Inc. (GTX) - Análisis de mortero: factores legales

Cumplimiento continuo de las regulaciones internacionales de fabricación automotriz

Garrett Motion Inc. enfrenta un paisaje regulatorio complejo en múltiples jurisdicciones:

Región	Cuerpos reguladores clave	Costo de cumplimiento (estimado)
Estados Unidos	NHTSA, EPA	$ 12.4 millones anuales
unión Europea	Comisión Europea, Uncse	8,7 millones de euros anualmente
Porcelana	Miit, saco	¥ 62.3 millones anuales

Desafíos potenciales de protección de la propiedad intelectual

Estadísticas de cartera de patentes:

• Patentes activas totales: 247
• Aplicaciones de patentes pendientes: 53
• Gastos anuales de protección de IP: $ 3.6 millones

Navegación de estándares ambientales y de seguridad globales complejos

Estándar ambiental	Requisitos de cumplimiento	Costo de implementación
Euro 6 emisiones	Reducción de partículas	5.2 millones de euros
Regulaciones en carbohidratos de California	Créditos de vehículos de emisión cero	$ 4.7 millones

Gestión de implicaciones legales de las transiciones tecnológicas en el sector automotriz

Transición tecnológica Inversiones legales:

• Cumplimiento de tecnología de vehículos eléctricos: $ 7.3 millones
• Preparación legal de conducción autónoma: $ 4.9 millones
• Adaptación regulatoria de ciberseguridad: $ 3.1 millones

Garrett Motion Inc. (GTX) - Análisis de mortero: factores ambientales

Compromiso de reducir las emisiones de carbono en la fabricación de automóviles

Garrett Motion Inc. ha establecido un objetivo para reducir las emisiones de CO2 en un 25% en sus instalaciones de fabricación globales para 2030. La huella de carbono actual de la compañía es de 78,500 toneladas métricas de equivalente de CO2 anualmente.

Métrico	Valor actual	Objetivo 2030
Emisiones de CO2	78,500 toneladas métricas	58,875 toneladas métricas
Uso de energía renovable	22%	50%
Reducción de desechos	15%	40%

Desarrollo de tecnologías de turbocompresión y propulsión ecológica

Garrett Motion ha invertido $ 42 millones en I + D para tecnologías de turbocompresión electrificadas. La cartera actual de la compañía incluye 17 patentes de tecnología de propulsión ecológica.

Tecnología	Inversión de I + D	Conteo de patentes
Turbocompresión electrificada	$ 42 millones	17
Sistemas de propulsión híbridos	$ 28 millones	12

Aumento del enfoque en procesos de fabricación sostenibles

Garrett Motion ha implementado medidas de conservación del agua, reduciendo el consumo de agua en un 32% en sus instalaciones de fabricación. La compañía ha asignado $ 18.5 millones para actualizaciones de infraestructura de fabricación sostenible.

Iniciativa de sostenibilidad	Inversión	Impacto
Conservación del agua	$ 7.2 millones	Reducción del 32% en el uso del agua
Infraestructura de fabricación	$ 18.5 millones	Infraestructura de sostenibilidad mejorada

Alineación con regulaciones ambientales globales y objetivos de reducción de carbono

Garrett Motion cumple con los estándares de emisiones de nivel 3 de la EPA y ha alineado sus procesos de fabricación con las regulaciones de emisiones de la UE. La compañía ha logrado la certificación ISO 14001: 2015 de gestión ambiental en el 92% de sus sitios de fabricación global.

Cumplimiento regulatorio	Cobertura	Proceso de dar un título
Estándares de nivel 3 de la EPA	100%	Totalmente cumplido
Regulaciones de emisiones de la UE	100%	Totalmente cumplido
Certificación ISO 14001: 2015	92%	Certificado

Garrett Motion Inc. (GTX) - PESTLE Analysis: Social factors

Rising consumer preference for sustainable transport drives demand for zero-emission tech.

The shift in consumer values toward environmental sustainability is defintely a core driver for Garrett Motion. This isn't just a niche trend; it's a massive social movement translating directly into vehicle purchasing decisions, which creates a clear market opportunity for your zero-emission (ZE) technologies. People are demanding cleaner cars, so original equipment manufacturers (OEMs) are forced to accelerate their electrification plans.

This preference is tangible in our business wins. We've secured 3 additional ZE program wins in China alone during the second quarter of 2025. This momentum supports our long-term goal of generating $1 billion in revenue from zero-emission technologies by 2030. To be fair, this is a long game, but the social demand is fueling the investment right now.

Here's the quick math on where our focus is:

• R&D Spend on ZE Tech: Over 50% of total R&D expenditure.
• Key ZE Products: E-Cooling systems, 3-in-1 E-Powertrain, Fuel Cell E-Compressors.
• 2025 Sales from Non-Turbo Products (including ZE): Expected to exceed $100 million.

The global team of approximately 9,000 employees requires skilled labor for advanced R&D.

With a global team of more than 9,000 employees across more than 20 countries, our biggest social asset is our specialized workforce. The pivot to zero-emission and electric boosting technologies means the demand for highly skilled engineers in areas like power electronics and software control systems is intense. We must win the war for this talent.

Our commitment is clear: we operate six R&D centers and 13 manufacturing sites globally. Our investment in this talent pool is quantified by our R&D and Engineering (RD&E) spend, which is projected to be 4.2% of sales for the 2025 fiscal year. This investment is crucial because the complexity of developing a 3-in-1 E-Powertrain, which integrates the motor, inverter, and reducer, requires a level of expertise far beyond traditional turbocharging mechanics. We are investing in people to build the future.

Light vehicle BEV penetration is projected to reach an average of 16% in 2025.

The industry-wide shift is measurable. Our own 2025 full-year outlook is grounded in the expectation that light vehicle Battery Electric Vehicle (BEV) penetration will average 16% of total light vehicle production. This is a critical metric because it maps the social trend directly to our core market. What this estimate hides is the regional variation, but the global average is a strong indicator of the direction of travel.

For context, here is a look at the key market penetration figures for 2025, which underscores the social acceptance of electrification:

Metric	Projection/Actual (2025)	Source/Context
Garrett's Light Vehicle BEV Penetration Outlook	16%	Company's full-year 2025 outlook.
Global BEV Market Share (Q1 2025)	16%	Highest Q1 market share on record.
China NEV Penetration (Passenger Vehicles)	58%	Projected NEV (New Energy Vehicle, includes BEV/PHEV) penetration in China.
Global BEV Sales Units (Projected)	15.1 million units	S&P Global Mobility forecast for battery electric passenger vehicles.

Focus on corporate social responsibility (CSR) is growing, evidenced by the 2025 EcoVadis Gold Medal award.

Stakeholder expectations-from consumers to investors-now demand that companies not only deliver profits but also operate responsibly. This growing focus on corporate social responsibility (CSR) is a powerful social factor that impacts brand reputation and access to capital. We see this in the increasing importance of Environmental, Social, and Governance (ESG) ratings.

Garrett Motion's efforts in this area were validated in September 2025 with the award of a 2025 EcoVadis Gold Medal for sustainability performance. This is a big deal. The recognition places Garrett Motion among the top 5% of all companies assessed by EcoVadis globally over the preceding 12 months, and within the top 3% in the industry. This achievement signals to customers and investors that our internal social and ethical practices are aligned with the sustainable products we sell. It's a competitive advantage.

Garrett Motion Inc. (GTX) - PESTLE Analysis: Technological factors

You're looking at Garrett Motion Inc. (GTX) and want to know if their technology strategy matches the industry's zero-emission shift. The short answer is yes, they are making a decisive, capital-intensive pivot while intelligently monetizing their legacy expertise in hybrid vehicles. This dual approach is their core strength right now.

Over 50% of 2025 R&D spend is focused on zero-emission technologies.

Garrett Motion is putting its money where the future is. For the 2025 fiscal year, the company is projecting a total Research, Development, and Engineering (RD&E) investment of 4.6% of sales. Based on the raised 2025 midpoint net sales outlook of $3.55 billion, this translates to an estimated total R&D spend of approximately $163.3 million. Critically, more than 50% of that investment is dedicated to zero-emission technologies, a clear signal of their strategic shift.

Here's the quick math on their zero-emission commitment:

Metric	Value (2025 Outlook)	Source
Midpoint Net Sales	$3.55 billion
Total RD&E Investment (% of Sales)	4.6%
Estimated Total RD&E Spend	~$163.3 million	(Calculation)
RD&E on Zero-Emission Technologies	>50% of total RD&E
Capital Expenditures on Zero-Emission Tech	>25% of total CapEx (2.8% of sales)

Key electrification products include the 3-in-1 E-Powertrain and E-Cooling Compressor.

The company is leveraging its deep expertise in high-speed rotating machinery-the core of turbocharging-to develop differentiated electric vehicle (EV) components. They are not just building parts; they are building highly integrated, compact systems.

• 3-in-1 E-Powertrain: Integrates the high-speed electric motor, inverter (power electronics), and reducer into a single package. This integration delivers up to a 40% reduction in size and weight compared to industry benchmarks, which is a huge win for EV packaging and range.
• E-Cooling Compressor: A high-power centrifugal refrigerant compressor for EV thermal management. Compared to mainstream solutions, it is approximately 2x smaller for the same cooling power and operates at speeds exceeding 160,000 RPM. This is defintely critical for enabling ultra-fast charging and optimizing battery life.

Pioneering advancements in Fuel Cell Compressors support the emerging hydrogen economy.

Garrett is a global leader in providing advanced cathode air compressors, which are essential for the fuel cell stacks in hydrogen Fuel Cell Electric Vehicles (FCEVs). Their technology is focused on optimizing oxygen supply to enhance fuel cell performance and extend driving range. The global Hydrogen Fuel Cell Compressors market size is projected to be around US$ 266 million in 2025, and Garrett is positioned as a key supplier to major automakers in this space.

Legacy turbocharging remains critical for high-efficiency hybrid and range-extended electric vehicles (REEVs).

To be fair, the shift to electric isn't an overnight flip. Garrett's legacy turbocharger business is still a major cash flow engine and a technology bridge. The company continues to win new business for its advanced turbochargers, particularly for high-efficiency internal combustion engine (ICE) applications, including plug-in hybrid electric vehicles (PHEVs) and Range-Extended Electric Vehicles (REEVs). The overall turbocharger market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 7.0% between 2025 and 2034, proving that high-efficiency ICE and hybrid powertrains will remain a significant segment for the near-term.

The company is upgrading its product development systems with new SaaS platforms as of November 2025.

To support this rapid product diversification, Garrett is overhauling its internal engineering backbone. As of November 2025, they are expanding their partnership with PTC to adopt new Software as a Service (SaaS) platforms. This move is a major operational technology upgrade, replacing legacy systems to create a unified, AI-ready product data foundation.

• New SaaS Platforms: Adopting PTC Codebeamer+ (Application Lifecycle Management) and Windchill+ (Product Lifecycle Management).
• Goal: Unify engineering disciplines, improve data traceability across global teams, and accelerate the development cycle for complex mechatronics-heavy products.

Finance: draft 13-week cash view by Friday incorporating the $163.3 million R&D commitment.

Garrett Motion Inc. (GTX) - PESTLE Analysis: Legal factors

Compliance with increasingly stringent global emissions standards is a core business driver.

For Garrett Motion Inc., the complex web of global emissions regulations isn't just a compliance headache; it's a massive R&D focus and a core commercial opportunity. You have to keep in mind that every new standard-like the upcoming Euro VII in Europe or the stricter CARB/EPA-27 rules in the US-requires a new product solution, and that's where Garrett Motion Inc. makes its money.

The company is backing this bet with hard cash. For the full year 2025, Garrett Motion Inc. is projecting its Research, Development & Engineering (RD&E) investment to be approximately 4.6% of net sales, and crucially, more than 50% of that investment is being directed toward zero-emission technologies. This is a clear legal-to-commercial strategy. They're not just reacting to the law; they are building the components-like e-turbos and fuel cell compressors-that automakers need to meet the law.

Here's a quick look at the regulatory roadmap driving this investment:

• Europe: Preparing for the anticipated Euro VII standards, which tighten limits on pollutants like nitrogen oxides (NOx) and particulates.
• China: Tracking the evolution to CHN7, which continues the country's aggressive push for cleaner air.
• North America: Focusing on CARB/EPA-27, which mandates significant reductions in commercial vehicle greenhouse gas (GHG) and NOx emissions.

Product liability laws in the automotive sector necessitate rigorous testing and quality control.

Product liability is a constant, high-stakes risk in the auto supply chain, and for a company whose components operate at extremely high speeds and temperatures, the legal exposure is significant. Garrett Motion Inc. is routinely involved in various legal proceedings, including product liability, intellectual property, and commercial disputes, as disclosed in their Q1 2025 filings. The risk is that a single component failure could lead to a recall or a class-action lawsuit, resulting in a material loss.

The biggest and most unique legal liability, however, is the legacy asbestos indemnification obligation to Honeywell International Inc. This is a long-term financial drain, not a product quality issue, but it sits on the balance sheet like a fixed legal cost. The company's annual exposure under this agreement is capped at $175 million, a substantial figure that must be factored into all long-term financial planning.

You have to defintely budget for the unexpected, but this particular legal obligation is a known, capped cost from the past.

Trade agreements and tariff rules require complex legal and financial compliance for global operations.

Operating across Europe, the US, and Asia means navigating a patchwork of trade agreements, tariffs, and customs laws. Garrett Motion Inc. is a global company, but its sales are geographically balanced, with only about 20% of net sales coming from North America, which helps mitigate the impact of US-specific tariffs like those on Chinese imports.

The financial impact of these rules is immediate and measurable. For the full year 2025, the company is projecting approximately $60 million in tariff pass-throughs to customers. While they aim to pass these costs through, the timing of recovery can create volatility. For instance, in Q2 2025, newly enacted import tariffs increased the cost of goods sold by $15 million, though the company recovered $14 million of tariffs within the same quarter. This is a margin game, and legal compliance is the gatekeeper.

Legal/Trade Factor	2025 Financial Impact/Metric	Strategic Action
Full-Year Tariff Exposure (Projected)	Approx. $60 million in pass-throughs	Negotiating immediate pass-through clauses with customers.
Q2 2025 Tariff Recovery	$14 million recovered	Managing cash flow timing between tariff payment and customer reimbursement.
R&D Investment for Emissions Compliance	>50% of 4.6% of net sales (RD&E)	Shifting investment to zero-emission and e-boosting technologies to meet Euro VII/CARB standards.
Legacy Asbestos Indemnification (Annual Cap)	Capped at $175 million to Honeywell International Inc.	Maintaining sufficient liquidity and debt structure to manage this fixed, long-term legal obligation.

The company must adhere to international data privacy and security laws for its connected technologies.

As Garrett Motion Inc. moves deeper into connected vehicle technologies-like its E-Powertrain and connected software solutions-it becomes a data processor, triggering compliance obligations under laws like the EU's General Data Protection Regulation (GDPR) and various US state laws (e.g., CCPA, Virginia CDPA). The recent move in November 2025 to adopt PTC's cloud-native platforms, Codebeamer+ and Windchill+, to unify engineering data globally, is a clear sign of this digitization.

This digital transformation, while boosting efficiency, exposes the company to new legal risks concerning data sovereignty, cross-border data transfers, and data breach notification requirements. The regulatory trend in 2025 is toward stricter enforcement on sensitive data and automated decision-making technology (ADMT), particularly in the US, which means the company must invest heavily in legal and IT infrastructure to ensure its new software-driven products are compliant by design.

Finance: Mandate a legal/IT audit of the new PTC cloud ecosystem by Q1 2026 to quantify GDPR and CCPA compliance costs.

Garrett Motion Inc. (GTX) - PESTLE Analysis: Environmental factors

Here's the quick math: The latest 2025 outlook targets $510 million in Adjusted EBIT, which confirms the hybrid and Internal Combustion Engine (ICE) business is still the primary cash cow. But the fact that more than 50% of R&D spend is now focused on zero-emission technology is the real long-term bet. What this estimate hides is the risk of a faster-than-expected Battery Electric Vehicle (BEV) adoption curve globally, which would accelerate the decline of the traditional turbo market. We need to watch that 16% average light vehicle BEV penetration number for 2025 defintely.

Next Step: Strategy team: Model a scenario where 2026 BEV penetration hits 20% and assess the impact on the 2027-2030 turbo program backlog by end of next week.

Target for Greenhouse Gas (GHG) emissions (Scope 1 & 2) is a 46.2% reduction by 2030.

Garrett Motion is aligned with the Paris Agreement, committing to a Science-Based Target (SBT) of reducing its absolute Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions by 46.2% by 2030, using a 2019 baseline. This isn't just a goal; it's a foundational strategic driver. By the end of 2024, the company had already achieved a cumulative reduction of 31.3%, putting them well on track to hit the 2030 goal. This progress is driven by energy efficiency projects, selective renewable energy procurement, and on-site installations.

The focus on operational efficiency is clear: Garrett Motion delivered a 3.0% decrease in absolute energy consumption in 2024 alone, contributing to a 20.5% total reduction since the 2019 baseline. Also, they are actively working to track their Scope 3 emissions (value chain emissions), with plans to have a tracking mechanism in place by the end of 2025.

All 13 manufacturing sites hold ISO 14001 certification for environmental management.

The company operates with a high degree of environmental management standardization. All 13 of Garrett Motion's manufacturing sites globally are certified to the ISO 14001 standard for environmental management. This 100% certification rate underlines a commitment to maintaining rigorous, globally consistent environmental standards across all operations, which helps mitigate regulatory and operational risks.

Beyond ISO 14001, all sites also hold ISO 50001 (Energy Management) and ISO 45001 (Occupational Health and Safety) certifications. This comprehensive management system approach ensures that environmental performance is integrated with energy efficiency and safety, making it a system-wide priority, not just a compliance checkbox.

Product design is focused on reducing environmental impact, cutting critical material use by up to 50% in some systems.

Garrett Motion's product portfolio is fundamentally an environmental solution, enabling customers to meet stricter emissions regulations. The design philosophy centers on Life Cycle Assessment (LCA) principles, focusing on reducing material use and improving efficiency. For example, the innovative design of their turbo and electric-boosting systems can cut critical material use by up to 50% in some systems, significantly lowering the system's carbon footprint.

This commitment extends to their zero-emission technologies like the proprietary 3-in-1 E-Powertrain, which offers up to a 40% reduction in size and weight, plus reduced material usage, including less rare earth and other critical minerals compared to traditional systems. The core business is built on technologies that reduce CO2 and improve fuel economy, which is why more than 99% of their revenue and R&D spend focuses on emission-reducing and zero-emission technologies.

The company is actively exploring renewable energy, including solar panels at its India plant.

Garrett Motion is implementing on-site renewable energy generation to directly reduce its Scope 2 emissions (electricity purchased). The company has installed solar panels at its Pune, India facility, which generates 95,000 KWh of energy and saves an estimated 50 tons of CO2 per year.

Other key installations include a 650-photovoltaic panel array at the Mexicali, Mexico plant, expected to contribute over 477 MWh of electricity annually and reduce the carbon footprint by an estimated 200 tons per year. These investments, alongside energy efficiency projects like LED lighting upgrades and compressed air reduction, are part of a broader energy digitization strategy to drive energy optimization across all facilities.

Environmental Performance Metric	2019 Baseline	2024 Performance	2030 Target
GHG Emissions (Scope 1 & 2) Reduction	0%	31.3% cumulative reduction	46.2% absolute reduction
Absolute Energy Consumption Reduction	0%	20.5% cumulative reduction	Not explicitly stated (focus on GHG)
Water Intensity Reduction (per turbo)	0%	14% cumulative reduction	Met 5-year goal (2019-2024)
Manufacturing Sites with ISO 14001	Not stated	13 sites (100%)	100% maintained

The tangible results show a strong commitment to environmental stewardship (ESG), which is increasingly important for institutional investors (Environmental, Social, and Governance).

• Reduce energy consumption with 29 investment projects in 2024.
• Implement 50 no-cost-low-cost energy efficiency initiatives in 2024.
• Achieve CDP Climate Change score of B.
• Receive national Green Plant certification for the Shanghai plant in 2025.