Harley-Davidson, Inc.
Climate Impact & Sustainability Data (2019, 2022)
Reporting Period: 2019
Environmental Metrics
Renewable Energy Share:0%
ESG Focus Areas
- Environmental Sustainability
- Social Responsibility
- Governance
Environmental Achievements
- 15.8% reduction in Scope 1 & 2 emissions vs 2018 (34.0% vs 2014)
- 14.0% decrease in enterprise-wide energy consumption vs 2018
- 11.26 MMBTU/bike all facilities energy intensity (4.5% improvement vs 2018)
- 6.9% waste to landfill (1 PPT improvement vs 2018)
Social Achievements
- Launched a new Total Wellbeing Assessment for US employees
- Industry-leading safety program with a recordable rate of 0.6
- $2.96 million in Foundation grants
- 6,328 hours of employee volunteering (58% improvement vs 2018)
Governance Achievements
- Majority of the Board comprised of independent directors (8 of 9)
- Four Board committees: Nominating and Corporate Governance, Human Resources, Audit and Finance, and Brand & Sustainability
Climate Goals & Targets
Long-term Goals:
- Determine how to participate effectively in efforts to achieve net zero emissions by 2050
Medium-term Goals:
- Deliver a portfolio of electric two-wheel vehicles by 2027
- Increase average fleet fuel economy to >50mpg by 2027
- Reduce energy intensity of global manufacturing to <8.00 mmBtu per motorcycle by 2027
- Achieve 15% renewables from onsite sources and RECs by 2027
Environmental Challenges
- Climate change risks to business model and operations
- Environmental impacts from motorcycle gasoline use and product materials
- Impacts from operations (energy consumption and waste generation)
Mitigation Strategies
- Goal to grow business without growing environmental impact
- Commitment to increasing renewable energy use (15% by 2027)
- Goal to improve fuel economy of gas-powered vehicles to >50mpg by 2027
- Reducing energy intensity of global manufacturing operations to <8.00 mmBtu per motorcycle by 2027
- Efforts to reduce waste to landfill to virtually zero
Supply Chain Management
Supplier Audits: 96% response rate to annual supplier survey
Responsible Procurement
- Code of Supplier Conduct
- Supplier diversity initiatives
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products and electric motorcycles
Sustainable Products & Innovation
- LiveWire® electric motorcycle
- IRONeTM electric balance bicycles
Awards & Recognition
- Women’s Enterprise (WE) USA’s “Best of the Decade” for supply base support of women-owned businesses
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- People
- Planet
- Profit
Environmental Achievements
- Working towards reducing emissions from US facilities by 50% since 2017
- Establishing criteria for future carbon credits
- Pursuing circular economy material use
- Commitment to achieving net zero carbon emissions for LiveWire by 2035 and Harley-Davidson by 2050
- Reduced oil usage by 6% at Pilgrim Road factory resulting in estimated savings of $150k/year
- Reduced 37,561 pounds of solid waste at Pilgrim Road factory by switching to reusable pads
- Tomahawk WI factory implemented acetone distillation, reducing waste and saving $500k
- Tomahawk WI factory reduced VOC emissions by half by switching paint line flush blend
Social Achievements
- Revamped Total Rewards approach including pay for performance and transparency
- Expanded parental leave policy to 8 weeks
- Provided free financial education and support through Operation HOPE
- Hosted leadership and culture series for 1075 employees
- Increased women and underrepresented talent in management to 39.7% (4 ppt increase from 2021)
- 51.7% of new hires in 2022 were women and underrepresented talent
- Improved employee engagement: 78.8% of employees engaged or almost engaged
- Launched a fundraising project, United for Ukraine, raising $115,830 for charity
- Partnership with Babes Ride Out, with 52% of riders being Harley-Davidson riders
- Global Month of Volunteering with over 100 employees completing hundreds of service hours
- Make48 competition in Milwaukee, supporting STEAM education
Governance Achievements
- Board formed Brand and Sustainability Committee providing oversight of ESG policies
- Adopted Code of Business Conduct, promoting ethical conduct
- Became signatories to the UN Global Compact
Climate Goals & Targets
Long-term Goals:
- Achieve net zero carbon emissions for LiveWire by 2035 and for Harley-Davidson, Inc. by 2050
Medium-term Goals:
- Reduce Scope 1 and 2 GHG emissions from US owned facilities by 50% (2017 baseline)
- Reduce energy intensity by 25% (US owned, 2017 baseline)
- ≥30% dealers achieve energy consumption reduction and other environmental impact targets
- Achieve ≥15% diverse spend across LiveWire, Harley-Davidson Motor Company and Harley-Davidson Financial Services
Environmental Challenges
- Climate change and its impact on business
- Supply chain disruptions
- Managing Scope 3 emissions
- Integrating ESG and sustainability across the business
Mitigation Strategies
- Signed onto Business Ambition for 1.5°C campaign and Race to Zero campaign
- Planning climate scenario analysis and full-scope carbon accounting in 2023
- Developing a new supplier scorecard to engage with suppliers on carbon footprint reduction
- Establishing an internal Inclusive Stakeholder Management advisory board
- Implementing responsible and sustainable sourcing expectations
- Material innovations for sustainability benefits
- More efficient product development
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- Responsible and sustainable sourcing expectations
- New supplier scorecard including responsible sourcing metric
Climate-Related Risks & Opportunities
Opportunities
- Electrification of motorcycles
Reporting Standards
Frameworks Used: GRI, SASB, TCFD
UN Sustainable Development Goals
- Goal 7: Affordable and Clean Energy
- Goal 11: Sustainable Cities and Communities
- Goal 12: Responsible Consumption and Production
LiveWire's products and services contribute to these goals.
Sustainable Products & Innovation
- LiveWire electric motorcycles