Climate Change Data

Environmental Metrics

ESG Focus Areas

• Generating Shareholder Value
• Promoting Safe, Sound Enjoyment
• Innovating to Improve our Environmental Performance
• Making Sound Investments in our People and Communities

Environmental Achievements

• Data collection initiated for landfilled and recycled solid waste.
• Implementation of electricity reduction measures to reduce GHG emissions.
• Development of GreenEdge™ technology, achieving power-to-performance efficiencies of up to 90 percent.
• New packaging designs significantly reducing material consumption and waste in Lifestyle business.
• Consolidated manufacturing sites closer to customers to save transportation costs and environmental impact in Automotive operations.

Social Achievements

• Data collection initiated for voluntary turnover rate.
• 90% completion rate for ethics and compliance training.
• 100% of suppliers screened for SA 8000 compliance.
• Active support for various national and local charities and community initiatives.
• Established a matching contributions program for employees following the Japan earthquake and tsunami.

Governance Achievements

• Established a whistleblower reporting policy with telephone hotline, Intranet, and mailbox channels.
• Implemented an Environmental Management System with continual improvement practices.
• Compliance with all applicable environmental laws and regulations.
• Strengthened supplier rules of conduct to optimize compliance with SA8000 standards.
• Code of Ethics implemented for all employees, including senior officers and the Board.

Climate Goals & Targets

Environmental Challenges

• Rapid growth of mobile infotainment technology creating challenges for optimizing technology with driver safety.
• Supply and pricing pressures for rare earth materials (dysprosium and neodymium) used in acoustics business magnets.
• Increased total greenhouse gas emissions consistent with increases in energy usage.

Mitigation Strategies

• Acquisition of Aha Radio and development of solutions integrating technology with driving (hands-free Bluetooth, sound management, voice navigation).
• Working with magnet suppliers to maintain supply continuity and exploring design options using alternate materials.
• Implementation of electricity reduction measures as the primary driver to reduce total GHG emissions; development of a global energy strategy.

Supply Chain Management

Supplier Audits: 100% of suppliers screened for SA 8000 compliance

Responsible Procurement

• Suppliers must have established policies for social accountability (SA8000 preferred), comply with environmental, health, and safety standards, provide safe working conditions, and support HARMAN in minimizing adverse environmental impact.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• GreenEdge™ audio and infotainment technology; HALOSonic™ sound management solution.

Awards & Recognition

• Tijuana, Mexico facility recognized as one of the Top 100 employers in the country by the Great Place to Work Institute.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 13% Reduction in Scopes 1 and 2 emissions from 2019 to 2021
• First on-site solar installation in Pune, India, producing over 3% of the site's annual energy consumption and saving 116 tons of greenhouse gas emissions.
• Introduced sustainable packaging guidelines for all new products, avoiding virgin plastic whenever possible and optimizing packaging size for efficient shipping.

Social Achievements

• Launched Diversity, Equity & Inclusion (DE&I) Learning Journey with over 197 graduates in 2021.
• Over 8,000 employees participated in 70+ courses from HARMAN University in 2021.
• Implemented HARMAN Flex, a work-from-home policy to increase employee productivity and motivation.

Governance Achievements

• Annual respondent to CDP and Walmart Project Gigaton, receiving a Silver Rating from EcoVadis in 2021.
• Recognized by General Motors as a Top Supplier for two consecutive years (2020, 2021) for sustainability and innovation.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions
• Improving data quality in Scope 3 emissions tracking

Mitigation Strategies

• Expanded focus on increasing renewable electricity procurement and improving data quality in scope 3

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, Walmart Project Gigaton, EcoVadis

Sustainable Products & Innovation

• JBL Go 3 Eco
• JBL Clip 4 Eco
• 6 new products made from up to 90% postconsumer recycled plastic and up to 100% recycled fabric

Awards & Recognition

• Walmart Project Gigaton “Sparkling Change” award (2021)
• General Motors Top Supplier (2020, 2021)