ARW

Arrow Electronics, Inc. (ARW) ESG Analysis Analysis (2026)

Invetso Score: 6.3/10 — Balanced · Last Updated: 2026-10-01

Environmental

ARW’s zero reported R&D intensity suggests limited direct environmental innovation disclosure, which is broadly in line with distribution peers but weaker than manufacturers with cleaner-product investment.

The company’s asset-light capital profile likely reduces direct operational emissions exposure versus industrial peers, although the absence of disclosed environmental metrics limits relative transparency.

No provided evidence indicates elevated environmental controversies, so ARW appears neither advantaged nor disadvantaged versus peers on near-term regulatory or reputational exposure.

Compared with peers that publish detailed climate targets and Scope 1–3 data, ARW’s environmental positioning looks middling because disclosure depth is the main differentiator.

Social

ARW’s very low stock-based compensation to revenue suggests restrained equity dilution, which can support workforce alignment but is not a strong social differentiator versus peers.

As a technology distributor, ARW’s social risk profile is generally lower than labor-intensive peers, because fewer employees and less manufacturing exposure reduce workplace-safety complexity.

No latest provided data points to material labor, product-safety, or community controversies, leaving ARW broadly comparable with peers on headline social risk.

Relative to peers with stronger human-capital disclosure and supplier-labor oversight, ARW appears average because limited transparency constrains evidence of superior social management.

Governance

ARW’s debt-to-equity ratio of 0.31 indicates conservative leverage, which supports governance discipline relative to more highly levered peers.

Net debt to EBITDA of 1.5 suggests manageable balance-sheet risk, reducing the likelihood that governance issues are amplified by financial stress.

Low stock-based compensation intensity implies less shareholder dilution pressure than peers with heavier equity awards, which modestly strengthens capital-allocation governance.

However, the absence of filing-based detail on board independence, audit quality, and shareholder rights keeps ARW below peers with stronger governance disclosure.

Overall Score

ARW’s ESG profile is broadly average versus peers, with conservative leverage supporting governance while limited environmental and social disclosure caps relative strength.

Score Driver: Conservative Leverage And Manageable Net Debt Are The Clearest Relative Governance Strengths, Offset By Limited ESG Disclosure Depth.

Sources

  • Company filings (10-K, 10-Q, investor presentations)
  • Financial and market data providers
  • Public news and industry information

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