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1、Driving Cause with ImpactSUSTAINABILITY REPORTOur CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report1Never has there been a time in history when purpose-driven innovation is so critical to a businesss long-term success.With this in mind,I a
2、m proud to share our most recent Sustainability Report,Sound Purpose:Driving Cause with Impact,which highlights stories of social and environmental progress we have made over the past two years.Our team is building a transformative sustainability platform that drives environmental,social,and corpora
3、te governance(ESG)performance across our business,allowing us to realize opportunities for the next generation and beyond.Our purpose-driven culture is evident in the strides we have made toward formalizing our environmental commitments and establishing meaningful partnerships that support the commu
4、nities where we live and work.Our Sound Purpose platform is how we bring that to life through our work in three strategic areas:Planet,People,and Purpose.To create meaningful progress,HARMAN is taking systematic action to formalize our processes for measuring and monitoring our impact across all dim
5、ensions of ESG.Our commitment to growth through sustainable and responsible actions is one of the seven strategic business pillars that are foundational to everything we do.With this purpose in mind,we take actions to drive impact throughout our business from redesigning our products to reduce envir
6、onmental impact to supporting local communities through strategic partnerships and employee activism.We have also worked diligently over the past year to identify key areas of improvement and better align with our customers and other stakeholders to make progress toward shared goals and priorities.T
7、his includes pledging to reach carbon neutrality by 2040,which has positive implications for the health of our planet and our people.I am proud to lead an organization that prioritizes integrity and innovates with intention.Since the founding of our company in the 1950s,we have been unwavering in th
8、is commitment,creating a legacy of brands and products that touch peoples daily lives.We take this responsibility very seriously and are uniquely poised to lead the sustainable transformation of the industries and markets we serve.After more than 70 years of doing business,we know both innovation an
9、d adaptation are critical to navigating emerging challenges and disruptions.Our ability to address those challenges with agility and resilience allows us to continue providing the best,connected experiences for our customers,wherever they may be,for generations to come.We thank you for supporting us
10、 on this journey to Drive Cause with Impact as we continue to fulfill our mission to create connected experiences through excellence in products and services.We look forward to advancing our Sound Purpose together.A Message from our President and CEOMichael Mauser President and Chief Executive Offic
11、erOur purpose-driven culture is evident in the strides we have made towards formalizing our environmental commitments and establishing meaningful partnerships that help support the communities where we live and work.Our CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironme
12、ntHARMAN Sustainability Report2About This ReportSound Purpose:Driving Cause with Impact represents the sixth iteration of our bi-annual sustainability report,demonstrating over a decade of commitment to transparent disclosure related to our performance on environmental,social,and governance issues.T
13、his report has been prepared in accordance with GRI Standards(2016).HARMANs Materiality Assessment and guidance from the Sustainability Accounting Standards Board(SASB)informed our core options and content selection.Reported metrics and performance indices are based on data from January through Dece
14、mber 2021.This reporting approach is intended to expand upon data reported in HARMANs 2020 Corporate Citizenship report.In some cases,the scope of reporting takes a more forward-looking approach on topics that are of specific importance;however,all data is representative of CY2021.Our Approach to Re
15、porting In 2021,HARMAN conducted a Materiality Assessment to identify ESG topics that are relevant and important to HARMAN and its stakeholders.The results of the assessment identified 17 material topics for HARMAN,which were used to guide the content of this report.A full overview can be found in t
16、he Materiality Download.About HARMANHARMAN International designs and engineers connected car systems,audio and visual products,enterprise automation solutions,and services supporting the Internet of Things.We serve automakers,consumers,and enterprises worldwide.The HARMAN suite of brands includes AK
17、G,Harman Kardon,Infinity,JBL,Lexicon,Mark Levinson,and Revel.HARMAN International is a wholly-owned subsidiary of Samsung Electronics Co.,Ltd.Energy Management&GHG EmissionsHazardous Waste&Chemicals ManagementNon-Hazardous Waste ManagementProduct Lifecycle,Packaging&Circular EconomyRaw Material Sour
18、cing&RisksBusiness Ethics&TransparencyCustomer User Experience,RelevanceESG LeadershipInformation Security/Data ManagementStrategy/Commitment to SustainabilitySupplier Monitoring&EngagementTransparency/TraceabilityDiversity&InclusionEmployee Health&SafetyEmployee Retention&RecruitmentHuman Rights&Fa
19、ir Labor PracticesWorkforce ManagementENVIRONMENTALGOVERNANCESOCIALFor more information on HARMANs materiality assessment process and outcomes,click here.For HARMANs 2021 GRI and SASB reporting,click hereOur CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sus
20、tainability Report3EnvironmentThis is our most ambitious commitment yet.Our decarbonization roadmap focuses first on improvements in operational efficiency,including waste reduction initiatives and increasing procurement of renewable electricity.We have developed interim climate targets to guide our
21、 effort against our long-term carbon neutrality commitment.We aim to have our target validated by the Science Based Targets initiative(SBTi)by 2025.Our Decarbonization StrategyClimate Targets Climate change is one of the most critical challenges of our time.HARMAN leadership has made a concerted eff
22、ort to integrate climate priorities into strategic decision-making.We are united in action and direction by our Climate Targets.These targets represent our vision for progress and help guide action within all our divisions and businesses.With support from HARMANs ESG Committee,in 2021,HARMAN committ
23、ed to achieving carbon neutrality across scopes 1,2,and 3 by 2040 10 years ahead of the Paris Agreement.The Climate Pledge brings together world-leading companies,organizations,and partners to accelerate collaborative action to reduce carbon emissions.For more information on HARMANs public commitmen
24、t to reaching carbon neutrality,click here.The Science Based Targets initiative(SBTi)is a partnership between CDP,the United Nations Global Compact,World Resources Institute(WRI),and the World Wide Fund for Nature(WWF).The SBTi defines and promotes best practices in emissions reductions and net-zero
25、 targets in line with climate science.As of January 2021,over 1,000+companies have set targets through the SBTi,representing nearly 20%of total global market capitalization.30%reduction in scope 1,2,and 3 emissions by 2025reduction in electricity consumption in operations by 2025Waste to Landfill in
26、 manufacturing operations by 2025Science Based Target(SBTi)in development for validation by 2025of electricity across the global manufacturing footprint to be sourced from renewables by 2025100%15%ZeroCarbon neutrality by 2040We all share the same world,and we share a common future Im proud of the r
27、emarkable progress our team continues to make driving HARMANs environmental sustainability strategy which fosters positive impact across the communities and markets where we live and serve.Tom Mooney,HARMAN International Senior Director,Government Affairs and SustainabilityOur CompanyOur EmployeesVa
28、lue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report4Climate ActionOur ambitious climate targets are illustrative of HARMANs commitment to long-term sustainability objectives.We recognize the role we play in the transformation of the industries we serve and the mi
29、tigation of potential adverse environmental and social impacts related to business operations.HARMAN has made positive changes to reduce our environmental footprint,and in the past several years we have accelerated our efforts.Greenhouse Gas Emissions and Energy Management To drive action towards ou
30、r carbon neutral goal,we are focusing first on measuring and tracking progress on our operational fuel and electricity usage(scopes 1 and 2),where we have the most immediate impact.From 2019 to 2021,our operational emissions decreased by approximately 13%.Members of our manufacturing teams in our fa
31、ctories globally have been instrumental in reducing our impact.We have successfully completed multiple energy efficiency projects in 2021,including lighting system improvements and air compressor and HVAC chiller upgrades.We are in the process of implementing additional improvements,including the in
32、stallation of sub-metering systems at our facility in Hungary,which will allow for better monitoring and control of energy consumption.CY2021CY2019Scope 1(metric tons CO2e)9,9528,568Scope 2 Location-based (metric tons CO2e)55,34366,860Scope 2 Market-based (metric tons CO2e)59,40774,892Total Scope 1+
33、Scope 2 Location-based(metric tons CO2e)65,29575,428We are also focusing on renewable electricity to reduce our operational emissions.In 2021,our first on-site solar installation came online in Pune,India.The installation is anticipated to produce around 163,200 kWh annually.In addition to the envir
34、onmental benefit of renewable electricity,the Pune installation affords our site with increased energy independence,bolstering resiliency in a climate-uncertain future.By 2025,HARMAN has committed to sourcing 100%renewable electricity across our entire global manufacturing footprint,aligned with our
35、 RE100 targets.Our CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report5Category 1:Purchased goods and services 5,551,841(90%)Category 2:Capital goods 34,792(1%)Category 3:Fuel-and-energy-related activities (not included in scopes 1 or 2)14,9
36、80(1%)Category 4:Upstream transportation and distribution 350,690(6%)Category 5:Waste generated in operations 1,045(1%)Category 6:Business travel 64,401(1%)Category 7:Employee commuting 51,000(1%)Category 9:Downstream transportation and distribution 29,875(1%)Category 11:Use of sold products 40,902(
37、1%)Category 12:End of life treatment of sold products 22,738(1%)Product SustainabilityBeyond HARMANs organizational carbon footprint,we understand that product design and development choices also have environmental impacts.We are evaluating product-level improvements across the entire life cycle,inc
38、luding product packaging,transportation,use,and end-of-life options.We are fine-tuning our creation and delivery processes to reduce product-level emissions while continuing to excel in performance and quality.Sustainable Packaging In 2021,we launched our sustainable packaging initiative,which intro
39、duced sustainable packaging guidelines for all new products.We started with the Consumer Audio Group.These guidelines include the avoidance of virgin plastic,whenever possible,with a preference for post-consumer recycled plastic and recyclable paper packaging.HARMAN is also optimizing packaging to t
40、he size of the product.Right-sized packaging will generate less waste and allow for more efficient shipping,which ultimately reduces fuel consumption and CO2 emissions.We support efforts to shift toward more sustainable packaging through our membership in the Sustainable Packaging Coalition(SPC).Sco
41、pe 3 Screening ExerciseTOTAL6,162,2642019 Scope 3 data(metric tons CO2e)Flip 6 recyclable packaging,soy ink printing,recycled plastic hangerWave Series packaging volume reduced by over 50%As we continue assessing near-term emissions reduction goals,we are investigating decarbonization opportunities
42、within our supply chain.This year,HARMAN completed a scope 3 screening using 2019 emissions data.This modeling project has helped us to better understand HARMANs impact beyond our own operations.It has also helped to identify emissions hot spots in our supply chain and provide a complete baseline fo
43、r measuring the impact of supply chain decarbonization initiatives over time.Emissions reduction efforts within our supply chain will require strong supplier partnerships and large-scale innovation,some of which are already underway(see more in our section on“Collaboration”,pages 19-20).Our CompanyO
44、ur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report6Product Life Cycle Analysis Packaging is only one aspect of a products environmental impact.Measuring the impact of each stage in a products journey is known as a life cycle assessment(LCA).Through
45、 LCA analysis completed in 2021,we found roughly 80%of the carbon footprint associated with our JBL Charge 5 was driven by emissions from raw material extraction for plastic and metal components.We will continue efforts to integrate more sustainable materials into our product offerings,building off
46、previous successes like the JBL Flip 5 Eco edition,HARMANs first portable Bluetooth speaker made from 90%recycled plastic.We also look to reduce our footprint through material reductions.We have begun an initiative to eliminate non-essential power cords with our products.In addition,to further reduc
47、e the environmental footprint of each product,HARMAN is investing in circular economies of scale by making products that last longer,can be more easily repaired,and can be disassembled for appropriate recycling and disposal(see more in our section on“Collaboration”,pages 19-20).Life cycle carbon emi
48、ssion distribution of JBL Charge 5Material Health and Chemical Management Given the close connection between planetary health and human health,HARMAN considers LCA results alongside material health screening data.Comprehensive material health screening,or evaluating material ingredients at the chemi
49、cal level,supplements HARMANs efforts to reduce potentially harmful ingredients(also known as Substances of Very High Concern)in products beyond legal compliance requirements.As a result of material health screening,the Consumer Audio Group initiated a shift from polyvinyl chloride(PVC)to a thermopl
50、astic elastomer material for charging cords in the EU.PVC contains chemical ingredients with potential health concerns.HARMANs focus on material health is another way we prioritize the safety of customers,team members,and the planet.Sourcing of ComponentsUse StageDistributionEnd-of-Life(EoL)82%8%6%2
51、%Assembly of ProductTransport of ContentsTransport to EoL1%1%1%Launched in 2021,InfinityLab is a power accessory brand that delivers sustainable charging devices that empower consumers to stay connected through technology at home,work,and on the go.All of InfinityLab portfolio products are made from
52、 90%recycled plastic and include wall chargers,power banks,wireless stands,and a speakerphone for crystal-clear calling.Packaging is right-sized to the product and is made from plastic-free materials printed on Forest Stewardship Council(FSC)certified paper with soy-based ink.Cables are woven from r
53、ecycled polyester yarn and the InstantConnect cable is made from PVC-free materials with a TPE protection layer.Our CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report7Hazardous Waste ManagementOnly a small percent of HARMANs waste is classi
54、fied as hazardous and it is HARMANs practice to comply with all international,national,and local regulations pertaining to hazardous waste.In addition to beyond compliance material health screening,HARMAN manages restricted substances through our Material Compliance Management system.This system ens
55、ures all material data is uploaded to the International Material Data System for consistent oversight.Our established Chemical Administration program prioritizes the elimination of substances listed in the Restriction of Hazardous Substances(RoHS)directive.We currently use no substances considered H
56、igh Risk to the environment or the health of our employees.*HARMANs waste diversion metric captures waste streams that do not enter landfills,but are instead disposed of through recycling,reuse,recovery,compost,or incineration.Water and Non-Hazardous Waste Management HARMANs manufacturing processes
57、are not water intensive.However,we still strive to improve water efficiency and identify water recycling opportunities.From 2019 to 2021,we reduced water usage by about 8%.Responsible waste management is another important focus area for HARMAN as we work to reduce our impact.HARMAN manufacturing sit
58、es have committed to zero waste to landfill targets by 2025.To proactively work towards this goal,HARMAN employees are implementing waste reduction initiatives,promoting recycling,implementing co-processing for energy generation(incineration),and composting organic waste.A Note on the Circular Econo
59、my:Waste reduction is a key aspect of HARMANs approach toward creating a more circular economy.Efforts to reduce or divert waste,especially by recycling materials back into our processes during manufacturing,work to close the loop.For example,in 2021,HARMANs Queretaro,Mexico facility worked with Que
60、retaros Sustainable Development Secretariat(SEDESU)in the delivery of a Circular Economy initiative.This initiative furthered HARMANs engagement with twelve local suppliers through the development and execution of energy reduction projects and waste minimization efforts.The Circular Economy joint in
61、itiative in Queretaro resulted in a waste reduction of 152.6 metric tonnes/year and 847,791 kWh in annual energy savings.Currently,9 of 10 manufacturing sites have waste diversion*rates above 80%.Across all sites,our total waste diversion from landfill was 91%in 2021.9/1080%Manufacturing sites have
62、waste diversion rates aboveOur CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report8Inspiring the Next GenerationAt HARMAN,our creative purpose is driven by our passion for music and technology.We innovate to deliver world-class audio experie
63、nces to our business partners and customers.Beyond our business commitments,we lead philanthropic initiatives to inspire a shared enthusiasm for music and encourage social connection across demographics,in education,and within our communities at large.Through MentorHER,fifteen HARMAN mentors volunte
64、ered to connect with college or graduate students for 1:1 virtual mentoring sessions,further reinforcing the idea that even a small amount of time can make a big impact.I enjoyed learning about my mentor and her work in human voice design.My biggest takeaway was that her struggle in STEM and my stru
65、ggle were both very similar.She guided me and explained that people need to have an acceptance to rejection and keep working on what we love most to prove to the world our capabilities.2021 MentorHER menteeHARMAN INSPIREDOur global cause initiative,HARMAN Inspired,supports purpose-driven partnership
66、s that foster skilled talent for the workforce of tomorrow.Critical to our mission,HARMAN Inspired utilizes a Science,Technology,Engineering,Arts,and Mathematics-centered(STEAM)approach in our global initiatives to drive creativity and humanize tech,empowering the next generation of leaders to devel
67、op deep connections with HARMAN technologies through unique and immersive experiences in music,technology,and service.Below are a few ongoing and new partnerships that were proud to highlight from 2021.Enriching Partnerships Through ExperiencesInspiring Young Women in STEAM with 1,000 Dreams Fund HA
68、RMAN understands the necessity of offering ongoing support to grow the pool of women entering STEAM fields.Since 2017,our longstanding partnership with 1,000 Dreams Fund(1DF)has granted scholarships to young women in tech across the United States through sponsorship of the multi-year New Face of Tec
69、h Scholarship.Furthermore,in 2021,HARMAN joined both 1DFs MentorHER Initiative,hosted a Women in Gaming discussion,and created the JBL Quantum Changemakers Challenge,demonstrating further commitment to mentorship and the professional advancement of women.Celebrating its fifth year,HARMAN and 1DF con
70、tinued the New Face of Tech Challenge,awarding twenty women$1,500 scholarships,JBL products,and mentorship from HARMAN executives.With over 207 applicants,winners were selected via selfie photo challenge,sharing why they are the“New Face of Tech”.Our CompanyOur EmployeesValue Chain EngagementInspiri
71、ng The Next GenerationEnvironmentHARMAN Sustainability Report9Your relentless support of teachers and students is what keeps us going.We could not imagine navigating through this new normal without youMusic Will TeacherSpreading the Unifying Power of Music on Make Music DayEach year,June 21 marks th
72、e anniversary of our annual global music festival,Make Music Day.Celebrating the 6th Anniversary of Make Music Day,2021 also marked JBLs 75th Anniversary as thousands of employees representing nine countries and 22 HARMAN locations connected virtually for music trivia contests,musical performances,a
73、nd unique volunteering events.Employee Virtual Jam Session:In 2021,HARMAN teams hosted our first virtual Jam Session featuring 68 musical performances by more than 80 employees from around the globe.From solo acoustic performances to highly produced band concerts,our jam session provided a platform
74、for HARMAN team members to connect,share their talents,and be inspired.Celebrations Abroad:HARMAN India employees gathered virtually to participate in Music Mystic,an hour-long event where more than 50 employees performed their favorite genre of music to celebrate Make Music Day.In other countries,H
75、ARMAN employees joined the fun with a multi-genre venue celebration,including the“Guess the Musical Instrument”employee contest,and a childrens artwork fair.In Hungary,employees organized Make Music Day quizzes for their employees,where winners received celebratory JBL swag.JBLs Quantum Changemakers
76、 event,a live watch party hosted by JBL and 1DF,presented viewers with access to candid conversations on the experiences of women in gaming with top streamers and content creators.The highlight of the watch party was the presentation of the JBL Quantum Grant to 30 recipients,chosen based on their“dr
77、eam career in gaming”submission.JBL Ambassador,Candace Parker,was on hand to congratulate the winners,each of whom received a$1,500 microgrant to support their career aspirations,a JBL Quantum ONE gaming headset for the ultimate competitive advantage,and virtual mentorship opportunities with the pan
78、elists.Supporting Tomorrows Musicians with Music Will Since 2014,HARMANs partnership with Music Will(formerly known as Little Kids Rock)continues to evolve and flourish,currently serving more than 525,000 students in 500 school districts across 49 states.During the pandemic,HARMAN and Music Will dev
79、eloped strategies for innovative distance-learning solutions to ensure that the program could continue and adapt to changing conditions,prioritizing participant health and safety.HARMAN and Music Will donated thousands of headphones to help students in underserved communities learn at home,all while
80、 continuing to build HARMAN Inspired Music Classrooms with donated professional audio equipment.Powered by HARMAN,Music Wills Jam Zone saw a spike of over 60,000 users per month,offering free interactive at-home music lessons across 8 countries.In addition,some of our 2021 program highlights include
81、:46 professional development sessions for teachers across the country,including adding 300+new teachers to our national program to reach an additional 75,000 students nationwide Video essay contest,songwriting exhibition,and virtual modern band summitOur focus on music education honors our legacy as
82、 a leader in premium audio equipment and gives meaning to our technology,proving that even in times of crisis,music is the lifeblood of our culture.Our CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report10Committing to Our Planet,People,and
83、Performance on Earth Day To honor Earth Day in 2021,HARMAN Inspired created the 21-Day Challenge,challenging employees to identify 21 new ways that they can help conserve resources and reduce their carbon footprint.New Partnerships to Foster ConnectionREACHs Happy Mama Platform to Improve Maternity
84、Care HARMANs Digital Transformation Solutions(DTS)business unit launched a collaboration with REACH,the creators of the Happy Mama platform,to support expectant and new mothers with the first-ever biopsychosocial wellness platform for maternity care.REACH a global social impact organization and DTS
85、align with the mission of improving the overall health experience for patients and providers throughout pre-and post-natal care.This comprehensive digital therapeutic solution encourages improved communication as well as better self-care and access to community and services.We are pleased to contrib
86、ute to the capabilities and portfolio of REACH in diligently working towards digital health equity through our digitally enabled,consumer-centered healthcare solution.REACHs Happy Mama solution is expected to transform the delivery of virtual maternal care,helping keep mothers and their unborn child
87、ren safe.David Owens,HARMAN International Senior Vice President,Digital Transformation SolutionsThe different perspectives really will help me when its my time to sit at the table.Shydea Blaine,student at Howard University and$5,000 Scholarship winnerJBL Launches Mentor Program for HBCU Students JBL
88、 launched its newest program in January 2021 focused on highlighting diversity as a core cultural tenant.Working alongside Culture Creators,a media art collective whose goal is to amplify individuals contributions to influencing black culture,HARMAN hosted a series of exclusive presentations through
89、 JBL Campus SoundSessions.HARMAN led 115 HBCU(Historically Black Colleges and Universities)students representing 40 institutes through a curated set of six intimate,educational conversations with JBL executives and influential music industry speakers,such as Quincy Jones and Whitney Gayle-Benta of S
90、potify.HARMAN provided students a unique platform to ask questions and hear personal stories of growth and challenges,expanding their professional network with mentors within their communities.Students learned the ins and outs of working behind the scenes in the music and audio industries,gaining th
91、e tools necessary to elevate their careers path through VIP access to hiring managers.At the end of the program,HARMAN awarded$50,000 in scholarships to four winners of a business case study competition and offered two summer internships.63140115254THE NUMBERSStudents AppliedVIP StudentsColleges&Uni
92、versitiesSpeakersSessionsOur CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report11Social Responsibility at Queretaro Trailblazing the HARMAN Inspired mission,the Queretaro team in Mexico developed The Social Responsibility Model,an initiativ
93、e evolved from the unique needs of the site and its community.The Social Responsibility Model prioritizes initiatives associated with education,diversity,equity and inclusion,namely:The formation of the local chapter of the HARMAN Womens Network(HWN)to create a culture of inclusion and womens career
94、 empowerment.HWN is a team of over 100 employees,both women and men,who have worked as volunteers and raised thousands of dollars through various fundraisers and events for the local womens shelter for victims of domestic violence.An ongoing partnership with the Lazos Foundation to reinforce the com
95、mitment to local youth and education programs.HARMAN has contributed mentorship,volunteer hours,and monetary contributions,which include both academic scholarships and funding for school supplies for over 100 local children from low-income families.The Queretaro facility received multiple certificat
96、ions,badges,and awards as a result of its successful social responsibility program including:The Federal Distinctive“Family Responsible Company”Award granted by the Ministry of Labor in Mexico Federal Work and Social Provision Department Gold Medal The Mexican Center for Philanthropys Socially Respo
97、nsible Company(SRC)Badge Association for Standardization Bronze Certification Instituto Mexicano de Seguro Social(IMSS)Healthcare System Health Security Badge Expansin Magazines Top Companies A Look Ahead As our programs and partnerships continue to evolve,HARMAN is focused on furthering meaningful
98、experiences promoting STEAM education,development,and impact.With our long and successful history in audio and technology innovation,HARMAN and our employees believe in the inspirational power of music and STEAM education.Our team members will continue to partner with organizations to unlock the pot
99、ential of future generations,all through the foothold of HARMANs embedded sustainability commitments.COVID-19 ResponseIn response to challenges related to the COVID-19 pandemic,HARMAN global teams spearheaded a variety of initiatives to keep our employees safe while continuing to deliver on business
100、 commitments.With creativity and dedication,the talented HARMAN team was able to navigate challenges through our global cause platform,HARMAN Inspired.As a purpose-driven leader in creating experiences,we identified unique ways to provide safe opportunities for HARMAN team members while at work and
101、at home.These include:COVID-19 Family Kits:All HARMAN employees in our Queretaro and Juarez,Mexico facilities regularly receive family care kits,comprised of disinfecting supplies and personal protective equipment,and other useful items to encourage pandemic safety.COVID-19 Vaccination Support:HARMA
102、N launched several vaccination campaigns to generate awareness and encourage employees and their families to get vaccinated for COVID-19.In addition,HARMAN facilities in Mexico,India,and Hungary hosted routine vaccination clinics,which offer the convenience of vaccinations on HARMAN premises.High le
103、vels of employee COVID-19 vaccinations have been achieved at all HARMAN locations.COVID Care in India:Quick to respond to employee needs,HARMAN created a 40-person team of volunteers to help distribute verified information and advice regarding COVID care.Volunteers collaborated with a local NGO,Care
104、giver Saathi,in establishing a 24/7 COVID-19 helpline.Through this helpline,HARMAN team members had around-the-clock access to current information related to hospital beds,oxygen providers,COVID testing information,and other critical resources.HARMAN AccuAlertMe:HARMANs Digital Transformation Servic
105、es business unit developed a mobile app called AccuAlertMe to provide options for automated and real-time contact tracing in workplaces for both employees and visitors.First-of-its-kind,this software won the team NASSCOM Engineering&Innovation Excellences Social Impact Solution of the Year award.Our
106、 CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report12Annual Outreach in the San Fernando ValleyHARMANs warehouse in Pacoima serves as a central hub for the Valley Food Bank,collecting,processing,and distributing surplus food at no charge to
107、 a network of food pantries,rescue missions,and other non-profit organizations.HARMAN employees joined forces with the food bank for the 7th year to provide hot nutritious meals and food baskets to the hungry and homeless in Southern California.Giving Back,with PurposeGiving back to the communities
108、where we live and work is a foundational pillar of HARMAN Inspired.Employees grow deeper connections while enriching peoples lives through local volunteer engagements.Here are a few highlights from 2021 of volunteerism around the world.Impact-Driven Volunteerism Around the WorldHARMANs commitment to
109、 connecting the world around us goes beyond innovative technological solutions in our product offerings.In 2021,despite challenges related to the pandemic,our global teams contributed to local needs through hands-on service and support to non-profit organizations.Continuing Support in BrazilThe“Adop
110、t a Child”Christmas campaign focuses on toy donations for children staying in the local Nascer Shelter,along with a bottle cap program benefitting children receiving therapy at the Kinder Institution by providing musical instruments.Additionally,employees in our Nova Santa Rita facilities supported
111、COVID relief efforts by manufacturing face shields and donating other basic health and hygiene products to medical facilities in the area.Year-Round Activism in Northridge,CaliforniaWith an active volunteer community,HARMANs employees in Southern California participated in the 5K Funk Run benefittin
112、g the Silverlake Conservatory of Music,a nonprofit dedicated to dynamic music education for all.In addition,for the 18th year,HARMAN donated audio,sound,and lighting equipment,as well as prizes for the Santa Clarita Relay for Life.Our CompanyOur EmployeesValue Chain EngagementInspiring The Next Gene
113、rationEnvironmentHARMAN Sustainability Report13Additional Giving and Initiatives HARMAN is proud to drive a positive impact in the communities we love and live in.Additional highlights from 2021 include:Charity Miles helps HARMAN employees turn every mile they walk,run,and bike(or otherwise move)int
114、o money for charity through a movement tracking app.Kicked off in December 2021,weve seen an 11-fold increase in employee participation,with over 620 employees supporting over 48 different charities.HARMAN donated JBL Flip 5 and Tuner 2 speakers to frontline workers at Hospital De Clinicas de Porto
115、Alegre in Brazil to recognize their brave efforts in light of COVID-19.Corporate PhilanthropyMark Levinson Supports Restaurants During Pandemic A legendary brand of HARMAN,Mark Levinson donated$25,000 to support the James Beard Foundations Open for Good Campaign.The Campaign showcases the brands bel
116、ief in the healing power of food and music through capacity-building engagements with independent restaurants that encourage resilient pandemic recovery.Aiding Independent Venues through#SaveOurStages JBLs unwavering support for independent venues prompted various initiatives through the National In
117、dependent Venue Associations(NIVA)#SaveOurStage campaign.To support the reopening of music venues,JBL donated a portion of sales on JBL.com during the summer of 2021,aimed at encouraging legislators to provide aid and infrastructure to help independent venues survive.JBL also made a product donation
118、 valued at$100,000 to#SaveOurStages,benefitting affected workers and musicians impacted by the pandemic who have played an important role in embracing and cultivating local talent and culture through music.Further supporting independent artists and musicians across America,HARMANs JBL brand also spo
119、nsored pop-up concerts in cities across the U.S.,benefitting performers challenged by pandemic lockdowns and limited work opportunities.Our CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report14Our EmployeesHARMANs workforce reflects the dive
120、rsity of the world in which we operate,and we are committed to making every employee feel valued,empowered,and involved.We drive this ethos from the top and proactively adapt our corporate approach to provide a healthy,safe,and inclusive workplace so each and every one of our employees can thrive.HA
121、RMAN UniversityIn 2021,we celebrated the fifth anniversary of our leadership training program,HARMAN University.HARMAN University is a comprehensive online and location-based hybrid learning curriculum and resource,offering customizable training sessions and professional development programs for all
122、 employees.Our programs have evolved to provide the critical modern skills that are necessary for our employees to thrive in their careers.In 2021,more than 8,000 employees participated in 70+courses from HARMAN University.Virtual and in-person courses feature topical themes like Creativity,Learning
123、 to Learn,and Responding to Change,as well as Time Management in a Hybrid Workplace and Building Your DE&I Muscle.We are proud to showcase programs kicked off in 2021 through HARMAN University.Developing Leaders WithinLearning never stops at HARMAN and the following programs continuously engage our
124、employees through technical,business,and professional development,while inspiring collaboration and cultivating curiosity across regions,business units,and levels.Product Management Academy:In 2021,we partnered with Cornell Universitys eCornell unit to launch the Product Management Academy aimed at
125、helping HARMAN managers strengthen their skills and take charge of their careers.HARMAN Be Brilliant Rewards HARMAN employees that drive progress and go above and beyond are rewarded for their successes through the Be Brilliant program.We routinely publicly recognize employees for their performance,
126、including actions impacting environmental sustainability such as air emissions,energy and water consumption,and waste reduction.Since kicking off the program in 2017,HARMAN has recognized 11,092 employees with rewards totaling over$1,275,000(USD).HARMAN University Alumni Network HARMAN Universitys L
127、eadership Alumni Program connects HARMAN University graduates,utilizing personal experience to fuel strategic learning,promote leadership culture,and foster innovation peer-to-peer.The program has three parts:1.Continue to Learn Employees can build their leadership capabilities through Masterclasses
128、 and Leadership forums.2.Connect to Others-Employees connect with leaders across departments and divisions to unlock synergies through Harvest sessions and Jam sessions.3.Pay it Forward Graduates nurture the next generation of leaders through Peer Learning Coaches,participation in panel discussions,
129、and mentoring.Our CompanyOur EmployeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report15Employee Retention and RecruitmentHARMAN believes that every company has an opportunity,even an obligation,to encourage the retention and career development of their empl
130、oyees.Through the promotion of work-life balance and equitable pay practices,HARMAN has adopted policies and initiatives to respond to our employees ever-changing personal and professional needs.Living In Tune With Health HARMAN offers a broad range of benefit options designed to support employee we
131、llness,help build financial acumen,inspire continuous learning,and encourage a successful work-life balance.Sound Living,HARMANs health and wellness program,works by giving our employees opportunities to reduce their healthcare costs by earning incentives,totaling up to$800,by completing a variety o
132、f well-being activities.For full-time employees worldwide,HARMAN covers the major share of the cost for standard health benefits depending on the level of government-provided coverage-including items like paying the full cost of vision care,along with access to a Diabetes Management Program and Slee
133、pio,a program designed to improve sleep.To complement the medical plans,HARMAN provides additional support,information,and coaching on healthcare questions and issues through Sound Living.In 2021,our US benefits and Human Resources teams spearheaded new benefits including a$10,000 reimbursement thro
134、ugh the Adoption Assistance Program for adoptive parents,fertility benefits for women including cryopreservation,and coverage for gender-affirming surgery and voice therapy for transgender team members.HARMAN also encourages giving back on company time,allowing US-based employees 8 hours of paid tim
135、e off annually to volunteer at an organization(s)of their choosing.HARMAN global teams have received accolades for their commitment to responsible business practices,including several notable awards within HARMAN countries of operation.In 2021,HARMANs Mexico teams were recognized with distinction fo
136、r the following:Federal Distinctive“Family Responsible Company”Award Federal Work and Social Provision Department Gold Medal Mexican Center for Philanthropys Socially Responsible CompanyBLUE Program Since its launch in 2019,over 400 global employees graduated from our Business Leadership United for
137、Engineers(BLUE)program.Designed specifically for engineers,this 18-month program builds communication skills outside of the conventional engineering environment,increasing business acumen to better engage with customers and drive business excellence.Leadership Experience Acceleration Program(LEAP)LE
138、AP,a two-year program where participants rotate through three different HARMAN teams in their career field,is designed to help early career professionals gain critical business skills and grow their internal network.Spanning all divisions,LEAP challenges participants to high-impact projects and assi
139、gnments,including an international location placement for a 6-month period.More than 60 HARMAN employees have participated in the LEAP program since 2018,representing team members from India,Mexico,Netherlands,Hungary,Germany,the United States of America,and Romania.Our CompanyOur EmployeesValue Cha
140、in EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report16Embracing a Work-Life Balance HARMAN encourages work-life balance through a variety of programs that address commitments associated with changing life stages and personal milestones.For families,HARMAN is proud to off
141、er Paid Parental Bonding Leave for all new birthing,adopting,and fostering parents.To ensure that team members observe religious holidays aligned with their values,HARMAN provides floating holidays for paid time off on dates that employees self-select.Understanding work-life balance is ever evolving
142、,HARMAN also offers balancing services like helping find child or elder care,pet care,and college planning.HARMAN formalized commitments to strengthening flexible working arrangements through HARMAN Flex,a work-from-home policy during the ongoing COVID-19 pandemic.Answering calls from our employees
143、for increased workplace flexibility,the intent of this policy is to ensure consistent work-from-home practices globally,increasing productivity and motivation of employees in the new culture of work.RecruitmentHARMAN promotes career development of our employees through HARMAN University and mentorsh
144、ip glide paths such as the HARMAN University Alumni Network.We also prioritize diverse and inclusive hiring practices for those positions which cannot be fulfilled internally.A full overview of our employee hiring and turnover metrics for 2021 can be found in the 2021 GRI Index.Diversity,Equity,and
145、InclusionAs a global organization,Diversity,Equity,and Inclusion(DE&I)is built into HARMANs core values,driven from the top and embedded throughout day-to-day operations.We believe a diverse workforce fosters an ongoing culture of uniqueness that spurs innovative thinking that directly correlates wi
146、th corporate growth.HARMAN has DE&I ambitions and is committed to reporting progress and demonstrating improvement and advancement toward a more equitable and inclusive team.Our GRI Index details HARMANs complete employee DE&I breakdown.DE&I Learning JourneyThrough HARMAN University,the DE&I Learnin
147、g Journey provides an educational platform to deliver curriculum allowing Leaders,Human Resources,and employees to understand the DE&I foundational concepts and promote a culture of inclusion across HARMAN.During 2021 we had more than 197 graduates of the program who completed DE&I learning tracks s
148、uch as“Hi to Hire”,which applies principles of equality to our hiring process;“Minus the Bias”,which explores the efficacy of unconscious bias training and related best practices;and“Leading Inclusively”,which teaches leadership tactics to encourage psychological safety and authenticity at work.Wome
149、n in TechAt HARMAN,we know that a diverse,equitable,and inclusive culture drives better results.We are better together,and we need everyone to be part of this journey.We have a responsibility to shift the trajectory of women entering our industry and support those who do.We are proud of our female r
150、epresentation throughout HARMAN but know we can do better.Not only through recruitment,but through fostering a supportive and inclusive environment,can we ensure the long-term success of all our employees.With more than 100 employees,both men and women,the HARMAN Womens Network(HWN)is our largest gl
151、obal Employee Resource Group and has provided a valuable roadmap for engaging HARMAN employees from other communities to form more Employee Resource Groups(ERGs).Through local HWN Chapter Leaders and Corporate sponsors,we have hosted International Womens Day campaigns on#BreaktheBias,panels on suppo
152、rting and celebrating parents and caregivers,and have worked to connect women within HARMAN to support their return from maternity leave with a mentorship program that connects female engineers whove successfully balanced work and home commitments with being new mothers.Our CompanyOur EmployeesValue
153、 Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report17Employee-Led ActivismWith more than 30,000 global employees,our HARMAN family represents the diversity of the world that we live in.Through our robust DE&I annual programming,we regularly host panel discussions an
154、d live events and share internal content to celebrate Hispanic Heritage Month,Neurodiversity Awareness Week,Coming Out Day,Asian/Pacific American(AAPI)Heritage Month,and Black History Month to name a few.With a newly appointed,VP of Diversity,Equity,and Inclusion on our HR Leadership Team,we continu
155、e to work to establish meaningful goals to increase and improve the diversity of our global workforce.We look forward to continued success in this area.Employee Health and SafetyHARMAN drives health and safety efforts through a comprehensive environment,health,safety,and security(EHSS)management sys
156、tem and our Occupational Health,Safety,Environmental,and Energy Policy.All employees,no matter their function or location,are provided with a safe and environmentally sound working environment through a broad range of initiatives:Employee Protection&Well-being:HARMAN is committed to a workplace free
157、 of known hazards,to prevent injuries and deterioration of health,following recognized ISO guidelines.A full list of certified sites can be found in the GRI Index.Compliance:HARMAN is committed to implementing processes that ensure compliance with all applicable country,state,and local laws,and conf
158、ormance to all other applicable requirements.Communication:Our Occupational Health,Safety,Environmental,and Energy commitments are communicated to employees,and client suppliers,and available to the public upon request.Continuous Improvement:HARMAN is committed to continuous review of objectives and
159、 targets to evolve our policies and practices,with the consultation and participation of employees and other stakeholders.In line with our“Consumer Experiences.Automotive Grade”philosophy,the automotive teams at HARMAN have taken safety one step further,brilliantly integrating safety features into e
160、very cutting-edge technology and solution they offer.We are dedicated to making every employee feel welcomed,valued,and empowered.We value a diverse and inclusive culture,but in order to make this possible we need everyone to be on board.Together we can drive the change we want to see.Lorena Loya,HA
161、RMAN International Vice President of Diversity,Equity,&InclusionEthics and TransparencyHARMAN requires ethical behavior and transparency from both our employees and our supply chain.Each decision we make has ripple effects,so we must carefully consider every action to ensure consistency with our Emp
162、loyee Code of Conduct and shared values.HARMAN integrates checks and balances through an internal decision tree,while also encouraging employees to speak up and report wrongdoings via a Whistleblower Hotline,open-door policy,and HARMAN Legal or HR Professional connection.Our CompanyOur EmployeesValu
163、e Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report18Supply Chain ManagementA safe and responsible supply chain is imperative for the health of our employees,workers,and the environment.HARMAN communicates sustainability performance expectations to suppliers throug
164、h our supplier sustainability engagement program,Amplify Progress,which was formally launched in 2021.HARMANs Supplier Code of Conduct is also available on our website.Human Rights and Fair Labor PracticesOur labor and human rights management approach is guided by policies that apply to HARMAN emplo
165、yees,suppliers,and sub-suppliers.The policies prohibit the use of forced or compulsory labor,child labor,and participation in human trafficking.At HARMAN we have a zero-tolerance approach to modern slavery and are fully committed to preventing slavery and human trafficking in our operations and supp
166、ly chain.Responsible Minerals SourcingHARMAN is committed to sound ethical practices.As part of this effort,HARMAN is working to increase supply chain transparency with the aim of avoiding sourcing from conflict countries and zones.HARMAN relies on supplier collaboration to reach conflictfree status
167、 and expects that suppliers establish their own conflict mineral policy,perform due diligence within their supply chains,and complete HARMANs conflict minerals survey.HARMAN is dedicated to embedding social responsibility into our global supply chains,which we support through our participation in th
168、e Responsible Business Alliance(RBA).We understand the value of transparency with our customers on the sources and impacts of our product materials.Our products contain tantalum,tin,tungsten,and gold,and we survey our global supply chain for conflict minerals to reasonably assure that our products a
169、re conflict-free.We do not source directly from smelters or mines.Our suppliers are expected,at a minimum,to disclose smelter information annually through the completion of the conflict minerals reporting template(CMRT)developed by The Responsible Minerals Initiative.Resilient Supply ChainValue Chai
170、n EngagementThroughout our value chain,we are making strides to build multi-stakeholder partnerships and innovate around end-of-life initiatives for our customers.HARMAN Employee Spotlight:Lily Guo,VP of Global Operations,Lifestyle Consumer Audio:As a senior operations executive at HARMAN,Lily Guo c
171、hampions strategic initiatives that maximize HARMANs supply chain efficiencies to deliver its products,technologies,and innovations worldwide.Over the last few years,Lily has been an effective leader through unprecedented challenges,including supply chain disruptions due to COVID-19 and the emergenc
172、e of a global semiconductor shortage.Her ability to optimize the companys supply chain processes by remaining forward-looking prepares her team well for unique challenges that lie ahead,especially in a climate-uncertain future.Our CompanyOur EmployeesValue Chain EngagementInspiring The Next Generati
173、onEnvironmentHARMAN Sustainability Report19Supply Chain TransparencyHARMANs supplier requirements are outlined in our Supply Chain Sustainability Policy,which affirms our commitment to sustainable procurement and engagement with suppliers on issues related to diversity,equity,and inclusion.The polic
174、y is built on three pillars that support a sustainable future in our supply chain and position HARMAN to continue to meet the demand for exceptional products.We ask suppliers to self-assess performance on various practices related to corporate social responsibility(CSR).Our Supply Chain Risk Managem
175、ent team uses the CSR Self-Assessment Questionnaire to collect,evaluate,and score sustainability information from suppliers across industries.We piloted an expansion of supplier questionnaires in 2021,engaging around 300 suppliers(representing 75%of suppliers by total procurement spend)via an intern
176、al CSR Sustainability Survey.The results of the survey will be used to identify risks and inform our strategy to reduce our scope 3 emissions.Our efforts thus far represent our evolved strategy related to Supplier Monitoring and Engagement,which allows us to make informed decisions using environment
177、al,health,and safety criteria.We are also better able to identify key areas where further education and partnerships are needed.In this way,we are working to ensure a resilient supply chain,based on transparency and collaboration.CollaborationHARMANs products span many different industries including
178、 automotive,electronics,consumer products,and more.There are unique examples of collaboration in all areas and lessons to learn from each sector as we pursue a lower carbon and more equitable future.External Engagement and PartnershipBeing a good value chain steward involves transparent reporting an
179、d disclosure of key ESG issues relevant to our customers and other stakeholders.HARMAN is an annual respondent to CDP as well as Walmarts Project Gigaton,which recognized HARMAN for“Sparkling Change”in 2021.HARMAN also responds to the EcoVadis business ratings,and in 2021,HARMAN received a Silver Ra
180、ting,meaning our performance was within the top 25 best companies in our peer group.HARMAN has also been recognized by General Motors as a Top Supplier for two consecutive years(2020,2021)for displaying outstanding achievement across certain key priorities including sustainability and innovation.Sus
181、tainable Supply Chain Economic Contribution Innovation Compliance Environmental Impact Resources Safe Products Diversity and Equal Opportunities Fairness Employee Health and Safety Respect for People and CommunitiesEnvironmental ResponsibilitySocial ResponsibilityEconomic ViabilityOur CompanyOur Emp
182、loyeesValue Chain EngagementInspiring The Next GenerationEnvironmentHARMAN Sustainability Report20Product End-of-Life InnovationEnd-of-life initiatives are becoming imperative in the electronics industry as we work to close the loop and recycle precious materials.HARMAN is making a concerted effort
183、to empower end-users to give our products a second life and extend the useful life of our products.Take-back&Recycling SchemesGiving products a second life through take-back and recycling schemes reduces the amount of waste landfilled and supports the circular economy.HARMAN is collaborating with va
184、rious national product stewardship programs to continue to expand product takeback opportunities.In the United States,HARMAN is a Steward with the Call2Recycle program focused on the takeback and recovery of batteries and power banks.Useable metals are extracted and recovered to be recycled into new
185、 products.For more information and drop-off locations,visit https:/www.call2recycle.org/.In Brazil,HARMAN consumer electronics and speakers can be recycled through the Green Eletron program.The program provides collection/drop-off points throughout Brazil at retail and other locations.The program co
186、ordinates environmentally appropriate final destinations for the e-waste.For more information,visit https:/greeneletron.org.br/blog/.Other initiatives to expand existing take-back and recycling programs are already underway.Launching in 2022,HARMAN is collaborating with Homeboy Electronics and Call2
187、Recycle in the development of a program for the InfinityLab line of products to provide certified mail-in recycling for electronics at the product end-of-life.HARMAN is investigating other opportunities to develop take-back/circularity programs in other global locations to reduce the impact of e-was
188、te on the environment.RefurbishmentHARMAN is exploring the potential for refurbishment programs to extend the useful life of our products,particularly within the Consumer Audio Group.This is a dimension of sustainability that we plan to continue monitoring,as it has important implications for consum
189、er experience and product environmental impact and allows our team to stay ahead of emerging waste-related legislation.Meeting the challenges of tomorrow means taking action today.At HARMAN,we pledge to build our future on a foundation that thrives sustainably and is responsibly rooted in our Sound
190、Purpose.Michael Mauser,HARMAN International President and CEOIn ClosingThrough our Sound Purpose,HARMAN has come a long way in our journey toward creating a more sustainable future.We are excited and proud to share the impact that we have made and what we have learned along the way.Through ambitious
191、 climate targets,emissions reduction initiatives,the use of more sustainable packaging and renewable electricity,as well as diverse and sustainable supply chain practices,HARMAN envisions a future that is brighter for all.All external requests for additional information should be sent to:OneHarmanESG.