Results and progress
Governance and ethics
In 2025, we strengthened individual accountability for ethical, compliant, and responsible business conduct by embedding these principles into our employee performance review process.
To reinforce protections for workers in our value chain, we implemented standards related to the protection of labor rights in our third-party agreements that we have begun rolling out on a risk basis. We also established an internal supplier due diligence working group to align standards and processes across sustainability, compliance, and quality functions.
In addition, we adopted a global supply chain mapping tool that expands our assessments and enhances transparency across our value chain.
Environmental stewardship
Overall, we exceeded our multiyear goal to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 10% from a 2022 baseline, achieving a 27.5% reduction. We also reduced absolute Scope 1 and 2 GHG emissions by 17% compared to a 2023 baseline, demonstrating continued progress toward our Science Based Targets initiative (SBTi) validated 2030 target.
In 2025, 40% of our electricity was powered by renewable energy (including on-site renewables, renewable energy projects, and utility programs).
We received validation of our near-term science-based targets (SBTs) from the SBTi, demonstrating alignment with best-practice climate goals. As part of this commitment, we are promoting shared accountability across our value chain by encouraging a portion of our suppliers and customers to set SBTs by 2030. By the end of 2025, 33% of our suppliers by spend (covering purchased goods and services) and 35% of our logistics partners by spend (covering upstream transportation and distribution) had set SBTs. While we have already exceeded our 30% customer engagement goal — with 32% of our customers by revenue (covering the use of sold products) having set SBTs — we will continue to track progress and work to increase customer commitments as our customer base may change and evolve through 2030.
We continued strengthening our environmental management systems and overall corporate stewardship and impact strategy by obtaining Shenzhen, China, ISO 14001, Reno, NV, ISO 45001, and Alcobendas, Spain, Cordoba, Spain, and Venlo, Netherlands, ISO 27001 certifications.
Our workforce and communities
In 2025, we continued building a purpose-driven culture where responsible leadership guides innovation and every employee feels valued and empowered to contribute in high-impact ways — both at work and in the communities we serve around the world.
We supported development opportunities across our global workforce, with 372 participants completing global development programs and 3,006 participants completing training to enhance change management skills. In addition, 96% of employees completed required AI skills training, helping ensure our workforce remains future ready.
Reflecting our focus on internal mobility and career growth, 75% of available leadership opportunities (supervisory and above) were filled by internal talent. We also completed fair pay analyses in all countries with populations of 100 or more employees, representing 96% of our employee population.
2026 corporate stewardship goals
Our ongoing goals, as outlined below, continue to underscore our commitment to managing our corporate stewardship and impact.
Governance and ethics
Goal 1: Strengthen compliance resources and build individual accountability for ethical, compliant, and socially responsible business conduct.
Goal 2: Implement continuous improvements to facilitate more comprehensive management of human rights and other risks for workers in the value chain.
Environmental stewardship
Our workforce and communities
Goal 2: Reward employees in alignment with our global compensation principles, including ensuring pay range placement reflects an employee’s professional performance, skills, experience, and pay relative to other similarly situated employees in the same or similar roles.
More resources
For inquiries regarding our Corporate Stewardship and Impact Report, please email corporatestewardship@arrow.com.
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