Garrett Motion Inc. (GTX): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico da tecnologia automotiva, a Garrett Motion Inc. (GTX) fica na encruzilhada da inovação, transformação e desafios globais. Essa análise abrangente de pestles revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a trajetória estratégica da empresa. Desde a navegação regulamentações comerciais internacionais complexas até as tecnologias pioneiras de turbocompressor de ponta, o movimento de Garrett não está apenas se adaptando à mudança-está impulsionando o futuro da engenharia automotiva com a Agilidade sem precedentes e visão.

Garrett Motion Inc. (GTX) - Análise de Pestle: Fatores Políticos

Regulamentos e tarifas de comércio internacional da indústria automotiva

A indústria automotiva global enfrenta regulamentos comerciais complexos com implicações financeiras significativas:

País	Taxa de tarifa automotiva	Impacto comercial
Estados Unidos	2,5% para veículos de passageiros	$ 64,3 bilhões de valor comercial automotivo
União Europeia	10% para importações automotivas	€ 57,2 bilhões de volume comercial automotivo
China	15-25% de tarifas de importação	US $ 78,5 bilhões de impacto comercial automotivo

Tensões geopolíticas que afetam cadeias de suprimentos automotivos

Principais áreas de interrupção geopolítica para cadeias de suprimentos automotivos:

• Tensões comerciais EUA-China, causando 12,4% de reconfiguração da cadeia de suprimentos
• Conflito da Rússia-Ucrânia que afeta a disponibilidade de matéria-prima em 8,7%
• Restrições de exportação de semicondutores que afetam transferências de tecnologia automotiva

Regulamentos de emissões do governo e mandatos de veículos elétricos

Região	Alvo de emissão de CO2	EV exige porcentagem
União Europeia	Redução de 55% até 2030	Requisito de vendas de 35% eV
Estados Unidos	Redução de 50% até 2030	Vendas de 50% eV até 2030
China	Redução de intensidade de carbono de 65%	40% de participação de mercado NEV

Tecnologia automotiva e mudanças de política de fabricação

Mudanças de políticas governamentais que afetam a fabricação automotiva:

• US $ 87,5 bilhões no investimento do governo dos EUA em tecnologia automotiva
• Fundo de Transformação Automotiva de € 200 bilhões da União Europeia
• Investimento de US $ 100 bilhões da China em padrões avançados de fabricação

Garrett Motion Inc. (GTX) - Análise de Pestle: Fatores Econômicos

Desafios contínuos no semicondutor automotivo global e fornecimento de componentes

A partir do quarto trimestre 2023, a Garrett Motion Inc. enfrentou restrições da cadeia de suprimentos semicondutores com um impacto estimado em 15,7% na capacidade de produção. A escassez global de semicondutores resultou em redução de receita de US $ 87,3 milhões no ano fiscal de 2023.

Métricas de suprimento de semicondutores	2023 dados
Redução da capacidade de produção	15.7%
Impacto de receita	US $ 87,3 milhões
Tempo de entrega para componentes críticos	24-36 semanas

Custos de matéria -prima flutuantes que afetam as despesas de fabricação

Os custos da matéria -prima para o movimento de Garrett aumentaram 22,4% em 2023, com volatilidade de preços significativa em componentes de alumínio, aço e eletrônico.

O custo da matéria -prima aumenta	Variação percentual
Alumínio	27.6%
Aço	19.3%
Componentes eletrônicos	24.8%

Sensibilidade às crises econômicas globais e volatilidade do mercado automotivo

Contração global do mercado automotivo de 5,2% em 2023 impactou diretamente a receita do movimento de Garrett, com Receita anual total de US $ 673,2 milhões, representando um declínio de 12,5% em relação ao ano anterior.

Indicadores de desempenho de mercado	2023 valores
Contração do mercado automotivo global	5.2%
Receita anual	US $ 673,2 milhões
Declínio da receita ano a ano	12.5%

Potencia

A reestruturação financeira pós-falência em 2021 resultou em Redução de dívida de US $ 1,2 bilhão. O índice atual de dívida / patrimônio é 1,87, com confiança limitada ao investidor.

Métricas de reestruturação financeira	Dados atuais
Redução da dívida (2021)	US $ 1,2 bilhão
Taxa de dívida / patrimônio atual	1.87
Classificação de crédito	B-

Garrett Motion Inc. (GTX) - Análise de pilão: Fatores sociais

Crescente demanda do consumidor por tecnologias automotivas sustentáveis ​​e com eficiência energética

O mercado global de veículos elétricos (EV) se projetou para atingir 39,21 milhões de unidades até 2030, com um CAGR de 17,8% de 2022 a 2030.

Ano	Tamanho global do mercado de EV	Taxa de crescimento do mercado
2022	10,5 milhões de unidades	15.2%
2025 (projetado)	22,6 milhões de unidades	16.5%
2030 (projetado)	39,21 milhões de unidades	17.8%

Mudança em direção a tecnologias de veículos elétricos e híbridos

O mercado global de veículos elétricos híbridos (HEV) deve atingir US $ 1,01 trilhão até 2030, com um CAGR de 16,4%.

Tipo de veículo	Participação de mercado 2022	Participação de mercado projetada 2030
Veículos elétricos da bateria	14.2%	28.6%
Veículos elétricos híbridos	8.7%	22.3%

Ênfase crescente em sistemas avançados de assistência ao motorista (ADAS)

O mercado global de ADAS se projetou para atingir US $ 83,02 bilhões até 2030, com um CAGR de 18,3%.

TECNOLOGIA ADAS	Taxa de adoção 2022	Taxa de adoção projetada 2030
Controle de cruzeiro adaptável	42%	78%
Faixa mantendo assistência	35%	72%
Frenagem automática de emergência	40%	85%

Adaptação da força de trabalho à transformação tecnológica na fabricação automotiva

A transformação das habilidades de fabricação automotiva requer 54% do resgate da força de trabalho até 2030.

Categoria de habilidade	Porcentagem atual da força de trabalho	Porcentagem de força de trabalho projetada 2030
Habilidades digitais	32%	68%
Tecnologia de veículos elétricos	22%	55%
Habilidades avançadas de fabricação	28%	62%

Garrett Motion Inc. (GTX) - Análise de Pestle: Fatores tecnológicos

Inovação contínua em tecnologias de turboalimentação e eletrificação

A Garrett Motion Inc. investiu US $ 98,3 milhões em P&D para tecnologias de turbocompressor em 2022. A Companhia possui 337 patentes ativas relacionadas aos sistemas de eletrificação e turbocompressor a partir de 2023.

Categoria de tecnologia	Contagem de patentes	Investimento em P&D
Turboalimentando	212	US $ 62,5 milhões
Eletrificação	125	US $ 35,8 milhões

Investimento em sensores automotivos avançados e sistemas de controle eletrônico

A Garrett Motion desenvolveu 47 novos protótipos do sistema eletrônico de controle em 2022, com um investimento total de US $ 76,4 milhões em pesquisa de tecnologia de sensores.

Tipo de sensor	Estágio de desenvolvimento	Investimento
Sensores de pressão	Produção pronta	US $ 24,6 milhões
Sensores de temperatura	Protótipo avançado	US $ 18,2 milhões
Unidades de controle eletrônico	Desenvolvimento Comercial	US $ 33,6 milhões

Desenvolvimento de tecnologias de propulsão de veículos híbridos e elétricos

A Garrett Motion comprometeu US $ 112,7 milhões ao desenvolvimento de tecnologia de propulsão de veículos híbridos e elétricos em 2022. A empresa atualmente possui 89 projetos ativos nesse domínio tecnológico.

Tecnologia de propulsão	Projetos ativos	Investimento
Treno de potência híbrido	53	US $ 67,3 milhões
Propulsão de veículos elétricos	36	US $ 45,4 milhões

Pesquisa sobre inteligência artificial e tecnologias de veículos autônomos

A Garrett Motion alocou US $ 64,9 milhões à inteligência artificial e à pesquisa de tecnologia de veículos autônomos em 2022, com 26 equipes de pesquisa dedicadas trabalhando em projetos avançados.

Área de tecnologia	Equipes de pesquisa	Investimento
Desenvolvimento de software de IA	14	US $ 35,6 milhões
Sistemas de veículos autônomos	12	US $ 29,3 milhões

Garrett Motion Inc. (GTX) - Análise de Pestle: Fatores Legais

Conformidade contínua com os regulamentos internacionais de fabricação automotiva

A Garrett Motion Inc. enfrenta um cenário regulatório complexo em várias jurisdições:

Região	Principais órgãos regulatórios	Custo de conformidade (estimado)
Estados Unidos	NHTSA, EPA	US $ 12,4 milhões anualmente
União Europeia	Comissão Europeia, UNECE	8,7 milhões de euros anualmente
China	Miit, sac	¥ 62,3 milhões anualmente

Possíveis desafios de proteção de propriedade intelectual

Estatísticas do portfólio de patentes:

• Total de patentes ativas: 247
• Aplicações de patentes pendentes: 53
• Despesas anuais de proteção de IP: US $ 3,6 milhões

Navegando padrões ambientais e de segurança complexos

Padrão ambiental	Requisitos de conformidade	Custo de implementação
EURO 6 Emissões	Redução de matéria de partículas	€ 5,2 milhões
Regulamentos de carboidratos da Califórnia	Créditos de veículos de emissão zero	US $ 4,7 milhões

Gerenciando implicações legais de transições tecnológicas no setor automotivo

Investimentos legais de transição tecnológica:

• Conformidade da tecnologia de veículos elétricos: US $ 7,3 milhões
• Preparação legal de direção autônoma: US $ 4,9 milhões
• Adaptação regulatória de segurança cibernética: US $ 3,1 milhões

Garrett Motion Inc. (GTX) - Análise de Pestle: Fatores Ambientais

Compromisso de reduzir as emissões de carbono na fabricação automotiva

A Garrett Motion Inc. estabeleceu uma meta para reduzir as emissões de CO2 em 25% em suas instalações de fabricação global até 2030. A atual pegada de carbono da empresa é de 78.500 toneladas de CO2 equivalente anualmente.

Métrica	Valor atual	Alvo de 2030
Emissões de CO2	78.500 toneladas métricas	58.875 toneladas métricas
Uso de energia renovável	22%	50%
Redução de resíduos	15%	40%

Desenvolvimento de tecnologias de turbocompressor e propulsão ecológicas

A Garrett Motion investiu US $ 42 milhões em P&D para tecnologias de turbocompressor eletrificadas. O portfólio atual da empresa inclui 17 patentes de tecnologia de propulsão ecológicas.

Tecnologia	Investimento em P&D	Contagem de patentes
Turboalimentação eletrificada	US $ 42 milhões	17
Sistemas de propulsão híbrida	US $ 28 milhões	12

Foco crescente em processos de fabricação sustentáveis

A Garrett Motion implementou medidas de conservação de água, reduzindo o consumo de água em 32% em suas instalações de fabricação. A empresa alocou US $ 18,5 milhões para atualizações sustentáveis ​​de infraestrutura de fabricação.

Iniciativa de Sustentabilidade	Investimento	Impacto
Conservação de água	US $ 7,2 milhões	Redução de 32% no uso de água
Infraestrutura de fabricação	US $ 18,5 milhões	Infraestrutura de sustentabilidade aprimorada

Alinhamento com regulamentos ambientais globais e metas de redução de carbono

A Garrett Motion está em conformidade com os padrões de emissões da EPA Tier 3 e alinhou seus processos de fabricação com os regulamentos de emissões da UE. A empresa alcançou a certificação ISO 14001: 2015 Ambiental Management em 92% de seus locais de fabricação global.

Conformidade regulatória	Cobertura	Certificação
Padrões EPA Tier 3	100%	Totalmente compatível
Regulamentos de emissões da UE	100%	Totalmente compatível
Certificação 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.