2021 Sustainability Governance

Our ESG Governance Snapshot
Sustainability is a team sport where everybody wins, but for a sustainability program to be truly
impactful and drive enduring results, it must be resilient. Embedding sustainability as a corecompetency that enables HARMAN’s overall vision, from our program governance and accountability
model, product and packaging design to supply chain engagement, and all aspects in between,
sustainability must be deeply embedded throughout the organization, not ‘bolted’ on.
—Tom Mooney, Senior Director, Government Affairs and SustainabilityGovernance Structure
HARMAN’s Environmental, Social and Governance (ESG)
Committee was established in 2021 to expand executive
leadership engagement and oversight. The Committee is madeup of relevant senior leaders from across the company whosebusiness operations and responsibilities impact climate and theenvironment, including supply chain, procurement, operations,manufacturing, health and safety, employee wellness, legal,communications, and government affairs.
The ESG Committee focuses on driving performanceat the intersection of business strategy, operations, andsustainability. Ultimately, the objective is to uphold our global
purpose and initiatives while achieving related sustainability
goals. The Committee is also responsible for managing andreporting on sustainability-related activities across HARMAN’s
global footprint and value chain, which includes delivering
a comprehensive sustainability performance report to theCEO on a quarterly basis. The report covers a wide array of
topics including energy efficiency, transition to renewableenergy, supply chain engagement, product sustainability, andsustainable packaging as well as distribution and logistics,
employee health and safety, and diversity, equity, and inclusion.
HARMAN’s Senior Leadership Committee (SLC) also has
responsibility for decision-making on ESG topics and istasked with the responsibility to keep HARMAN’s Boardof Directors apprised of compliance-related concerns andprovide the support necessary to address any concerns. The
SLC meets monthly to discuss strategic business objectives,including environmental concerns. Governance mechanisms
and business priorities are also reviewed during the annual
Strategic Management Meeting, attended by broader
HARMAN management.

Our Sustainability Strategy
Today, sustainability represents one of HARMAN’s seven Key
Strategic Business Pillars. The elevation of Sustainability allows
us to continue to execute with diligence for our customers
while also supporting the transition to a greener, more circular
economy. In 2021, HARMAN established a new role to leadsustainability excellence and expand responsibility to support
the governance of this Key Strategic Business Pillar.
$15B Revenue
by 2025 Profitability
LEVERS FOR DIFFERENTIATION

Innovate
Smart
Experiences

CollaboratewithIndustryLeadingPartners

Executeon time &quality

COST LEVERS

Capitalize
on iconicbrands

Drive costleadership

WIN THROUGH PEOPLE
THRIVE SUSTAINABLY AND RESPONSIBLY

An important part of sustainability governance is theidentification of climate-related risks and opportunities,
which allows companies to track and monitor transitional
and physical risks that may impact a company’s long-termsustainability and financial performance. In 2021, HARMAN
carried out a climate-risk screening aligned with the Task
Force on Climate-Related Financial Disclosures (TCFD)
across global manufacturing sites to inform strategic risk
mitigation and decision-making. We aim to expand thisassessment to ensure we appropriately address risks as theyarise and capitalize on opportunities to align our ambitions
with the expectations of our key stakeholders.

For more on HARMAN’s TCFD report, click here.