Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Design
• Climate Impact
• Responsible Sourcing
• Workplace
• Diversity & Inclusion
• Fight Corruption

Environmental Achievements

• Decreased emissions from the use of plastics in Marshall Major IV headphones by 98% using recycled plastic.
• Implemented eco-charging in all 2021 headphones to prolong battery life.
• Reduced transport emissions by 31% (from 3,665 tonnes of CO2e in 2020 to 2,510 tonnes in 2021).

Social Achievements

• Improved health and safety processes at long-term product suppliers (social insurance, PPE, waste management).
• Updated Supplier Code of Conduct with clearer requirements on overtime.
• Initiated company-wide lectures to elevate competence within Diversity & Inclusion.

Governance Achievements

• Updated Code of Conduct with clearer requirements on maximum overtime.
• No incidents or elevated risks for bribery and corruption reported.
• Online training offered to employees on preventing bribery and corruption.

Climate Goals & Targets

Environmental Challenges

• Global pandemic impacting business operations and supply chains.
• Shortage of integrated circuits and other components.
• Complex supply chain with challenges related to human rights, health and safety, and environmental impact.

Mitigation Strategies

• Established new ways of working to protect employees and adapt to supply chain challenges.
• Worked with suppliers to find new components and maintain quality and fair conditions.
• Increased audits and assessments of suppliers, both internally and through third parties.

Supply Chain Management

Supplier Audits: 12 Zound Audits + 3 third-party audits

Responsible Procurement

• Supplier Code of Conduct (updated 2021)
• Collaboration with suppliers to improve standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: GRS (Global Recycle Standard)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Marshall Major IV headphones with recycled plastics

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity & Inclusion
• Responsible Sourcing
• Circular Economy
• Climate Change
• Human Rights

Environmental Achievements

• Committed to halve emissions by 2030 and reach net zero by 2040 (Science Based Targets Initiative)
• 100% of Tier 1 manufacturers part of Supplier Development Programme
• Halogen-free PCBA as standard in new designs
• Recycled plastic as new standard in all products launched in 2022 (56% to 97% recycled content)
• Introduced new recycled materials: Recycled PVB vegan leather, knitted nylon textiles
• All products launched in 2022 were PVC-free
• Urbanears introduced new plastic-free packaging

Social Achievements

• Launched "Eyes on D&I" to elevate D&I competence
• Improved conditions at Tier 1 suppliers and deepened collaboration with material suppliers
• Employee Engagement Index of 3.2 out of 4
• Various community engagement projects (e.g., Queens Teens Institute, Oroko Radio, UNHCR, UNICEF)
• 83% of Tier 1 manufacturers scored above B in sustainability audits (compared to 30% two years earlier)

Governance Achievements

• Implemented a new digital training platform including anti-corruption training
• Mandatory anti-corruption training launched in February 2023
• All product manufacturers obligated to sign Supplier Code of Conduct
• Sustainability governance structure established with quarterly progress reports to the Board

Climate Goals & Targets

Environmental Challenges

• Challenging macro situation and uncertain economic outlook
• Supply chain disruptions due to Covid-19
• Complex global geopolitical situation
• Improving understanding of Tier 2 suppliers
• Limited data on end-of-life treatment of products
• Improving accuracy of materials emissions estimates
• Managing chemical control through complex supply chain
• Need for better measurement of power consumed by equipment
• Minimising air transport in supply chain
• Improving certainty of estimates for energy use of products

Mitigation Strategies

• Developed alternative sourcing strategies
• Improved internal planning to minimise air transport
• Developed data systems to measure impact of changes
• Joined Chemsec’s PFAS Movement and started phasing out PFAS chemicals
• Industry partner in RISE “POPFREE Industry” project
• Implemented Responsible Material Guide
• Set an upper limit of 80-90% of full capacity in true wireless headphones batteries
• Collaborated with battery suppliers to improve battery life and longevity
• Introduced guidelines for designing for repair and recycling
• Implemented Battery Life Extension features in true wireless headphones

Supply Chain Management

Supplier Audits: 100% of Tier 1 manufacturers audited in 2022, audits of Tier 2 suppliers also conducted

Responsible Procurement

• Supplier Code of Conduct (signed by 100% of Tier 1 manufacturers)
• Sustainability training for suppliers
• Sustainability audits of manufacturers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Sustainable Products & Innovation

• Urbanears Boo and Boo Tip (97% and 91% recycled plastic)
• Adidas RPT-02 SOL (solar-powered, 51% recycled plastic)

Awards & Recognition

• Two Red Dot awards for design (Marshall Motif ANC and Urbanears Boo)
• Epica Award for adidas "Running Billboard" campaign