Driving Cause
with Impact

SUSTAINABILITY REPORTHARMAN Sustainability Report

Our Company

Environment

Inspiring The Next Generation

Our Employees

Value Chain Engagement

A Message fromour President and CEO
to identify key areas of improvement and better align withour customers and other stakeholders to make progress
toward shared goals and priorities. This includes pledging
to reach carbon neutrality by 2040, which has positive
implications for the health of our planet and our people.

Never has there been a time in history when purposedriven innovation is so critical to a business’s long-term
success. With this in mind, I am proud to share our mostrecent Sustainability Report, Sound Purpose: Driving
Cause with Impact, which highlights stories of socialand environmental progress we have made over the
past two years. Our team is building a transformative
sustainability platform that drives environmental, social,and corporate governance (ESG) performance acrossour business, allowing us to realize opportunities for the
next generation and beyond. Our purpose-driven culture isevident in the strides we have made toward formalizing ourenvironmental commitments and establishing meaningful
partnerships that support the communities where we live
and work. Our Sound Purpose platform is how we bringthat to life through our work in three strategic areas: Planet,
People, and Purpose.

I am proud to lead an organization that prioritizes integrity
and innovates with intention. Since the founding of ourcompany in the 1950s, we have been unwavering in thiscommitment, creating a legacy of brands and products thattouch people’s daily lives. We take this responsibility very
seriously and are uniquely poised to lead the sustainabletransformation of the industries and markets we serve.
After more than 70 years of doing business, we knowboth innovation and adaptation are critical to navigating
emerging challenges and disruptions. Our ability to address
those challenges with agility and resilience allows us tocontinue providing the best, connected experiences for ourcustomers, wherever they may be, for generations to come.

To create meaningful progress, HARMAN is taking
systematic action to formalize our processes for measuringand monitoring our impact across all dimensions of ESG.
Our commitment to growth through sustainable andresponsible actions is one of the seven strategic businesspillars 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 environmental impact to supporting local
communities through strategic partnerships and employee
activism. We have also worked diligently over the past year

We thank you for supporting us on this journey to Drive
Cause with Impact as we continue to fulfill our mission
to create connected experiences through excellence inproducts and services. We look forward to advancing ourSound Purpose together.

Michael Mauser
President and Chief Executive Officer

Our purpose-driven culture is evident in thestrides we have made towards formalizing ourenvironmental commitments and establishing
meaningful partnerships that help support thecommunities where we live and work.

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HARMAN Sustainability Report

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Inspiring The Next Generation

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About HARMAN
HARMAN 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 AKG®, Harman Kardon®,Infinity®, JBL®, Lexicon®, Mark Levinson®, and Revel®.
HARMAN International is a wholly-owned subsidiary of Samsung Electronics Co., Ltd.

About This Report
Sound Purpose: Driving Cause with Impact represents
the sixth iteration of our bi-annual sustainability report,
demonstrating over a decade of commitment totransparent disclosure related to our performance on
environmental, social, and governance issues.

This reporting approach is intended to expand upon datareported in HARMAN’s 2020 Corporate Citizenship report.
In some cases, the scope of reporting takes a more
forward-looking approach on topics that are of specificimportance; however, all data is representative of CY2021.

This report has been prepared in accordance with GRI
Standards (2016). HARMAN’s Materiality Assessment andguidance 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 December 2021.

Our Approach to Reporting

For HARMAN’s 2021 GRI and SASB reporting, click here

For more information on HARMAN’s materiality

In 2021, HARMAN conducted a Materiality Assessment
to identify ESG topics that are relevant and important
to HARMAN and its stakeholders. The results of theassessment identified 17 material topics for HARMAN,
which were used to guide the content of this report. A fulloverview can be found in the Materiality Download.

assessment process and outcomes, click here.

Energy Management & GHG Emissions
Hazardous Waste & Chemicals
Management
Non-Hazardous Waste Management

ENVIRONMENTAL

Product Lifecycle, Packaging& Circular Economy

Diversity & Inclusion
Employee Health & Safety

Raw Material Sourcing & Risks

SOCIAL

Human Rights & Fair
Labor Practices

Business Ethics & Transparency
Customer User Experience, Relevance

Workforce Management

ESG Leadership
Information Security/Data Management

Employee Retention& Recruitment

GOVERNANCE

Strategy/Commitment to Sustainability
Supplier Monitoring & Engagement
Transparency/Traceability

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Environment
Our Decarbonization Strategy
Carbon neutrality by 2040

Climate Targets
Climate change is one of the most critical challenges of ourtime. HARMAN leadership has made a concerted effort tointegrate 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.

Science Based Target (SBTi) in
development for validation by 2025

With support from HARMAN’s ESG Committee, in 2021,
HARMAN committed to achieving carbon neutrality acrossscopes 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 acceleratecollaborative action to reduce carbon emissions.
For more information on HARMAN’s public
commitment to reaching carbon neutrality, click here.

Zero

Waste to Landfill in manufacturing
operations by 2025

15%

reduction in electricity consumption
in operations by 2025

100%

This is our most ambitious commitment yet. Ourdecarbonization roadmap focuses first on improvements inoperational efficiency, including waste reduction initiatives
and increasing procurement of renewable electricity.

30%

of electricity across the global
manufacturing footprint to besourced from renewables by 2025

reduction in scope 1, 2,
and 3 emissions by 2025

We have developed interim climate targets to guide our effort
against our long-term carbon neutrality commitment. We aim
to have our target validated by the Science Based Targets
initiative (SBTi) by 2025.

We all share the same world, and we share a common
future – I’m proud of the remarkable progress our teamcontinues to make driving HARMAN’s environmental
sustainability strategy which fosters positive impact acrossthe communities and markets where we live and serve.

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 bestpractices in emissions reductions and net-zero targets inline 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.

—Tom Mooney, HARMAN International Senior Director,
Government Affairs and Sustainability

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Climate Action
Our ambitious climate targets are illustrative of HARMAN’scommitment to long-term sustainability objectives. We
recognize the role we play in the transformation of theindustries we serve and the mitigation 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 wehave accelerated our efforts.

From 2019 to 2021, our operational emissions decreased
by approximately 13%. Members of our manufacturing
teams in our factories 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 installation of sub-meteringsystems at our facility in Hungary, which will allow for better
monitoring and control of energy consumption.

Greenhouse Gas Emissions and Energy Management
To drive action towards our carbon neutral goal, we arefocusing first on measuring and tracking progress on ouroperational fuel and electricity usage (scopes 1 and 2), where
we have the most immediate impact.
CY2021CY2019

Scope 1 (metric tons CO2e)

9,952

8,568

Scope 2 Location-based(metric tons CO2e)55,343

66,860

Scope 2 Market-based(metric tons CO2e)59,40774,892

Total Scope 1 + 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 environmental 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 RE100 targets.

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As we continue assessing near-term emissions reduction goals, we are investigating decarbonization opportunities 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 HARMAN’s impact beyond our own operations. It has also helped to identify emissions
hot spots in our supply chain and provide a complete baseline for measuring the impact of supply chain decarbonization
initiatives over time. Emissions reduction efforts within our supply chain will require strong supplier partnerships andlarge-scale innovation, some of which are already underway (see more in our section on “Collaboration”, pages 19-20).

Scope 3 Screening Exercise

Category 1:
Purchased goods
and services
5,551,841 (90%)

Category 2:
Capital goods
34,792 (1%)

Category 3:
Fuel-and-energyrelated activities(not included inscopes 1 or 2)
14,980 (<1%)

Category 4:
Upstreamtransportation anddistribution
350,690 (6%)

Category 5:
Waste generated
in operations
1,045 (<1%)

Category 6:
Business travel
64,401 (1%)

TOTAL
Category 7:
Employeecommuting
51,000 (1%)

Category 9:
Downstream
transportation anddistribution
29,875 (<1%)

Category 11:
Use of soldproducts
40,902 (1%)

Category 12:
End of life treatmentof sold products
22,738 (<1%)

6,162,2642019 Scope 3 data (metric tons CO2e)

Product Sustainability
Beyond HARMAN’s organizational carbon footprint, we understandthat product design and development choices also have environmental
impacts. We are evaluating product-level improvements across theentire life cycle, including 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.

Wave Series
packaging volume
reduced by over 50%

Sustainable Packaging
In 2021, we launched our sustainable packaging initiative, which
introduced 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 the size of the product. Rightsized packaging will generate less waste and allow for more efficientshipping, which ultimately reduces fuel consumption and CO2 emissions.
We support efforts to shift toward more sustainable packaging throughour membership in the Sustainable Packaging Coalition (SPC).

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Flip 6 recyclable
packaging, soy ink
printing, recycledplastic hanger

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Product Life Cycle Analysis

Material Health and Chemical Management

Packaging is only one aspect of a product’s environmental
impact. Measuring the impact of each stage in a product’s
journey is known as a life cycle assessment (LCA). Through
LCA analysis completed in 2021, we found roughly 80% of
the carbon footprint associated with our JBL Charge 5 wasdriven 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 previous successes like the JBL Flip 5 Ecoedition, HARMAN’s first portable Bluetooth speaker madefrom 90% recycled plastic.

Given the close connection between planetary health andhuman health, HARMAN considers LCA results alongsidematerial health screening data. Comprehensive material
health screening, or evaluating material ingredients at thechemical level, supplements HARMAN’s efforts to reduce
potentially harmful ingredients (also known as Substancesof Very High Concern) in products beyond legal compliancerequirements.
As a result of material health screening, the Consumer
Audio Group initiated a shift from polyvinyl chloride (PVC)
to a thermoplastic elastomer material for charging cords inthe EU. PVC contains chemical ingredients with potential
health concerns. HARMAN’s focus on material health isanother way we prioritize the safety of customers, teammembers, and the planet.

Life cycle carbon emission
distribution of JBL Charge 582%

Sourcing of Components

1%

Assembly of Product8%

Use Stage<1%

Transport of Contents

6%

Distribution<1%

Transport to EoL

2%End-of-Life (EoL)

Launched in 2021, InfinityLab is a power accessory
brand that delivers sustainable charging devices
that empower consumers to stay connected throughtechnology at home, work, and on the go. All of
InfinityLab portfolio products are made from 90%
recycled plastic and include wall chargers, powerbanks, wireless stands, and a speakerphone forcrystal-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 wovenfrom recycled polyester yarn and the InstantConnect
cable is made from PVC-free materials with a TPE
protection layer.

We also look to reduce our footprint through material
reductions. We have begun an initiative to eliminate nonessential power cords with our products. In addition, to further
reduce the environmental footprint of each product, HARMAN
is investing in circular economies of scale by making productsthat last longer, can be more easily repaired, and can bedisassembled for appropriate recycling and disposal (seemore in our section on “Collaboration”, pages 19-20).

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Hazardous Waste Management

Water and Non-Hazardous Waste Management

Only a small percent of HARMAN’s waste is classified ashazardous and it is HARMAN’s practice to comply with allinternational, national, and local regulations pertaining tohazardous waste. In addition to beyond compliance material
health screening, HARMAN manages restricted substances
through our Material Compliance Management system.
This system ensures all material data is uploaded to theInternational Material Data System for consistent oversight.
Our established Chemical Administration program prioritizes
the elimination of substances listed in the Restriction ofHazardous Substances (RoHS) directive. We currently use no
substances considered High Risk to the environment or thehealth of our employees.

HARMAN’s manufacturing processes are not water
intensive. However, we still strive to improve water
efficiency and identify water recycling opportunities. From2019 to 2021, we reduced water usage by about 8%.
Responsible waste management is another importantfocus area for HARMAN as we work to reduce our impact.
HARMAN manufacturing sites have committed to zerowaste 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.

Currently, 9 of 10 manufacturing
sites have waste diversion* rates
above 80%. Across all sites, ourtotal waste diversion from landfill
was 91% in 2021.

9/10

Manufacturing
sites havewaste diversion
rates above

80%*HARMAN’s waste diversion metric captures waste streams that do not enter landfills,
but are instead disposed of through recycling, reuse, recovery, compost, or incineration.

A Note on the Circular Economy: Waste reduction is a key aspect of HARMAN’s approach toward creating a morecircular 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, HARMAN’s Queretaro, Mexico facility worked with
Queretaro’s Sustainable Development Secretariat (SEDESU) in the delivery of a Circular Economy initiative. Thisinitiative furthered HARMAN’s engagement with twelve local suppliers through the development and execution ofenergy reduction projects and waste minimization efforts. The Circular Economy joint initiative in Queretaro resulted ina waste reduction of 152.6 metric tonnes/year and 847,791 kWh in annual energy savings.

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Inspiring the Next Generation
At HARMAN, our creative purpose is driven by our passion for music and technology. We innovate todeliver world-class audio experiences to our business partners and customers. Beyond our business
commitments, we lead philanthropic initiatives to inspire a shared enthusiasm for music and encouragesocial connection across demographics, in education, and within our communities at large.

HARMAN INSPIRED
Our global cause initiative, HARMAN Inspired, supports
purpose-driven partnerships that foster skilled talent for
the workforce of tomorrow.
Critical to our mission, HARMAN Inspired utilizes a
Science, Technology, Engineering, Arts, and Mathematicscentered (STEAM) approach in our global initiatives todrive creativity and humanize tech, empowering the next
generation of leaders to develop deep connections with
HARMAN technologies through unique and immersive
experiences in music, technology, and service. Below area few ongoing and new partnerships that we’re proud tohighlight from 2021.

Enriching Partnerships Through Experiences
Inspiring Young Women in
STEAM with 1,000 Dreams Fund
Through MentorHER, fifteen HARMAN mentors volunteered
to connect with college or graduate students for 1:1 virtual
mentoring sessions, further reinforcing the idea that even asmall amount of time can make a big impact.

HARMAN understands the necessity of offering ongoingsupport 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 intech across the United States through sponsorship of themulti-year New Face of Tech Scholarship. Furthermore, in
2021, HARMAN joined both 1DF’s 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.

I enjoyed learning about my mentor and her work in humanvoice design. My biggest takeaway was that her struggle in
STEM and my struggle were both very similar. She guided
me and explained that people need to have an acceptanceto rejection and keep working on what we love most to
prove to the world our capabilities.

Celebrating its fifth year, HARMAN and 1DF continued the
New Face of Tech Challenge, awarding twenty women$1,500 scholarships, JBL products, and mentorship from
HARMAN executives. With over 207 applicants, winners wereselected via selfie photo challenge, sharing why they are the“New Face of Tech”.

—2021 MentorHER mentee

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JBL’s Quantum Changemakers 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 streamersand content creators. The highlight of the watch party was thepresentation of the JBL Quantum Grant to 30 recipients, chosen
based on their “dream career in gaming” submission. JBL
Ambassador, Candace Parker, was on hand to congratulate thewinners, 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 panelists.

Our Employees

Value Chain Engagement

Your relentless support of teachers and students is what
keeps us going. We could not imagine navigating throughthis new ‘normal’ without you—Music Will Teacher

Spreading the Unifying Powerof Music on Make Music Day
Each year, June 21 marks the anniversary of our annual
global music festival, Make Music Day. Celebrating the 6th
Anniversary of Make Music Day, 2021 also marked JBL’s 75th
Anniversary as thousands of employees representing ninecountries and 22 HARMAN locations connected virtually formusic trivia contests, musical performances, and uniquevolunteering events.
Employee Virtual Jam Session: In 2021, HARMAN teams
hosted our first virtual Jam Session featuring 68 musicalperformances by more than 80 employees from around theglobe. From solo acoustic performances to highly produced
band concerts, our jam session provided a platform for
HARMAN team members to connect, share their talents, andbe inspired.

Supporting Tomorrow’s Musicians with Music Will
Since 2014, HARMAN’s 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 developed strategies for innovative distancelearning solutions to ensure that the program could continue
and adapt to changing conditions, prioritizing participant
health and safety.

Celebrations Abroad: HARMAN India employees gatheredvirtually to participate in Music Mystic, an hour-long event
where more than 50 employees performed their favorite genreof music to celebrate Make Music Day. In other countries,
HARMAN employees joined the fun with a multi-genre venue
celebration, including the “Guess the Musical Instrument”
employee contest, and a children’s artwork fair. In Hungary,employees organized Make Music Day quizzes for theiremployees, where winners received celebratory JBL swag.

HARMAN and Music Will donated thousands of headphones
to help students in underserved communities learn athome, all while continuing to build HARMAN Inspired MusicClassrooms with donated professional audio equipment.
Powered by HARMAN, Music Will’s Jam Zone saw a spike ofover 60,000 users per month, offering free interactive at-homemusic lessons across 8 countries.
In addition, some of our 2021 program highlights include:• 46 professional development sessions for teachers acrossthe country, including adding 300+ new teachers to ournational program to reach an additional 75,000 students
nationwide• Video essay contest, songwriting exhibition, and virtual
modern band summit
Our focus on music education honors our legacy as a leader
in premium audio equipment and gives meaning to ourtechnology, proving that even in times of crisis, music is the
lifeblood of our culture.
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Committing to Our Planet, People,
and Performance on Earth Day

Our Employees

Value Chain Engagement

JBL® Launches Mentor Program for HBCU Students
JBL launched its newest program in January
2021 focused on highlighting diversity as acore cultural tenant. Working alongside Culture
Creators, a media art collective whose goal is toamplify individuals’ contributions to influencing
black culture, HARMAN hosted a series of
exclusive presentations through JBL Campus
SoundSessions.

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 theircarbon footprint.

The different perspectives really will help me
when it’s my time to sit at the table.
—Shydea Blaine, student at Howard University
and $5,000 Scholarship winner
HARMAN led 115 HBCU (Historically Black Colleges andUniversities) students representing 40 institutes througha curated set of six intimate, educational conversations
with JBL executives and influential music industry
speakers, such as Quincy Jones and Whitney Gayle-Bentaof Spotify. HARMAN provided students a unique platform
to ask questions and hear personal stories of growth andchallenges, expanding their professional network withmentors within their communities. Students learned theins and outs of working behind the scenes in the music
and audio industries, gaining the tools necessary to elevatetheir 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.

New Partnerships to Foster Connection
REACH’s Happy Mama
Platform to Improve Maternity Care
HARMAN’s Digital Transformation Solutions (DTS) business
unit launched a collaboration with REACH, the creators of theHappy Mama platform, to support expectant and new motherswith the first-ever biopsychosocial wellness platform formaternity care. REACH – a global social impact organization– and DTS align with the mission of improving the overall
health experience for patients and providers throughout preand post-natal care. This comprehensive digital therapeutic
solution encourages improved communication as well as
better self-care and access to community and services.

THE NUMBERS

We are pleased to contribute to the capabilities andportfolio of REACH in diligently working towards digital
health equity through our digitally enabled, consumercentered healthcare solution. REACH’s Happy Mama
solution is expected to transform the delivery of virtualmaternal care, helping keep mothers and their unborn
children safe.
—David Owens, HARMAN International SeniorVice President, Digital Transformation Solutions

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6

31

40

115

254

Sessions

Speakers

Colleges &Universities

VIP
Students

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Social Responsibility at Queretaro

COVID-19 Response

Trailblazing the HARMAN Inspired mission, the Queretaro
team in Mexico developed The Social Responsibility Model,
an initiative evolved from the unique needs of the site and its
community.

In response to challenges related to the COVID-19
pandemic, HARMAN global teams spearheaded avariety of initiatives to keep our employees safe while
continuing to deliver on business 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 uniqueways to provide safe opportunities for HARMAN teammembers while at work and at home. These include:

The Social Responsibility Model prioritizes initiatives associatedwith education, diversity, equity and inclusion, namely:• The formation of the local chapter of the HARMAN Women’s
Network (HWN) to create a culture of inclusion and women’s
career 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 forthe local women’s shelter for victims of domestic violence.
• An ongoing partnership with the Lazos Foundation to reinforce
the commitment 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 certifications, 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 Philanthropy’s Socially Responsible
Company (SRC) Badge• Association for Standardization Bronze Certification• Instituto Mexicano de Seguro Social (IMSS) Healthcare System
Health Security Badge• Expansión Magazine’s Top Companies• 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, andother useful items to encourage pandemic safety.
• COVID-19 Vaccination Support: HARMAN launchedseveral vaccination campaigns to generate awarenessand 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 ofvaccinations on HARMAN premises. High levels of
employee COVID-19 vaccinations have been achievedat all HARMAN locations.
• COVID Care in India: Quick to respond to employee
needs, HARMAN created a 40-person team ofvolunteers to help distribute verified information andadvice regarding COVID care. Volunteers collaborated
with a local NGO, Caregiver Saathi, in establishinga 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, andother critical resources.
• HARMAN AccuAlertMe: HARMAN’s Digital
Transformation Services business unit developed amobile app called AccuAlertMe to provide options
for automated and real-time contact tracing inworkplaces for both employees and visitors. Firstof-its-kind, this software won the team NASSCOM
Engineering & Innovation Excellence’s Social Impact
Solution of the Year award.

A Look Ahead
As our programs and partnerships continue to evolve, HARMAN is focused on furthering meaningful experiences promoting
STEAM education, development, and impact.
With our long and successful history in audio and technology innovation, HARMAN and our employees believe in theinspirational power of music and STEAM education. Our team members will continue to partner with organizations to unlock
the potential of future generations, all through the foothold of HARMAN’s embedded sustainability commitments.
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Giving Back, with Purpose
Giving back to the communities where we live and work is a foundational pillar of HARMAN Inspired. Employees grow deeper
connections while enriching people’s lives through local volunteer engagements. Here are a few highlights from 2021 ofvolunteerism around the world.

Impact-Driven Volunteerism Around the World
HARMAN’s commitment to connecting the world around us goes beyond innovative technological solutions in our productofferings. 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 Brazil
The “Adopt 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 COVID relief efforts by manufacturing faceshields and donating other basic health and hygiene
products to medical facilities in the area.

Year-Round Activism in Northridge, California
With an active volunteer community, HARMAN’s
employees in Southern California participated in the 5K
Funk Run benefitting the Silverlake Conservatory of Music,
a nonprofit dedicated to dynamic music education forall. In addition, for the 18th year, HARMAN donated audio,
sound, and lighting equipment, as well as prizes for the
Santa Clarita Relay for Life.

Annual Outreach in the San Fernando Valley
HARMAN’s warehouse in Pacoima serves as a central
hub for the Valley Food Bank, collecting, processing,and distributing surplus food at no charge to a networkof food pantries, rescue missions, and other non-profit
organizations. HARMAN employees joined forces withthe food bank for the 7th year to provide hot nutritious
meals and food baskets to the hungry and homeless inSouthern California.

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Corporate Philanthropy
Mark Levinson Supports Restaurants During Pandemic
A legendary brand of HARMAN, Mark Levinson donated$25,000 to support the James Beard Foundation’s Openfor Good Campaign. The Campaign showcases thebrand’s belief in the healing power of food and music
through capacity-building engagements with independent
restaurants that encourage resilient pandemic recovery.

Additional Giving and Initiatives
HARMAN is proud to drive a positive impact in
the communities we love and live in. Additional
highlights from 2021 include:•C harity Miles helps HARMAN employees turn every mile
they walk, run, and bike (or otherwise move) into money
for charity through a movement tracking app. Kicked
off in December 2021, we’ve seen an 11-fold increasein 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
Alegre in Brazil to recognize their brave efforts in lightof COVID-19.

Aiding Independent Venues through #SaveOurStages
JBL’s unwavering support for independent venues prompted
various initiatives through the National Independent Venue
Association’s (NIVA) #SaveOurStage campaign.
To support the reopening of music venues, JBL donateda portion of sales on JBL.com during the summer of2021, aimed at encouraging legislators to provide aid
and infrastructure to help independent venues survive.
JBL also made a product donation valued at $100,000
to #SaveOurStages, benefitting affected workers andmusicians impacted by the pandemic who have played an
important role in embracing and cultivating local talent andculture through music.
Further supporting independent artists and musicians
across America, HARMAN’s JBL brand also sponsored popup concerts in cities across the U.S., benefitting performers
challenged by pandemic lockdowns and limited work
opportunities.

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Our Employees
HARMAN’s workforce reflects the diversity 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 andproactively adapt our corporate approach to provide a healthy, safe, and inclusive workplace so eachand every one of our employees can thrive.

Developing Leaders Within
Learning never stops at HARMAN and the following programs continuously engage our employees through technical, business,and professional development, while inspiring collaboration and cultivating curiosity across regions, business units, and levels.

HARMAN University
In 2021, we celebrated the fifth anniversary of our leadership training program,
HARMAN University. HARMAN University is a comprehensive online and locationbased hybrid learning curriculum and resource, offering customizable training
sessions and professional development programs for all 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 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.

Product Management Academy:

HARMAN University Alumni Network

In 2021, we partnered with Cornell University’s eCornell
unit to launch the Product Management Academy aimed
at helping HARMAN managers strengthen their skills andtake charge of their careers.

HARMAN University’s Leadership 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 theirleadership capabilities through Masterclasses andLeadership forums.
2. Connect to Others - Employees connect with leadersacross departments and divisions to unlock synergies
through Harvest sessions and Jam sessions.

HARMAN Be Brilliant Rewards
HARMAN employees that drive progress and go aboveand beyond are rewarded for their successes throughthe Be Brilliant program. We routinely publicly recognize
employees for their performance, 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).

3. Pay it Forward – Graduates nurture the next generationof leaders through Peer Learning Coaches, participationin panel discussions, and mentoring.

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BLUE Program

Leadership Experience Acceleration Program (LEAP)

Since its launch in 2019, over 400 global
employees graduated from our Business
Leadership United for 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.

LEAP, a two-year program where participants rotate through threedifferent HARMAN teams in their career field, is designed to help
early career professionals gain critical business skills and growtheir internal network. Spanning all divisions, LEAP challenges
participants to high-impact projects and assignments, including aninternational 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.

Employee Retention and Recruitment
HARMAN believes that every company has an opportunity, even an obligation, to encourage the retention and careerdevelopment of their employees. Through the promotion of work-life balance and equitable pay practices, HARMAN has
adopted policies and initiatives to respond to our employee’s ever-changing personal and professional needs.

Living In Tune With Health
HARMAN offers a broad range of benefit options designed
to support employee wellness, help build financial acumen,
inspire continuous learning, and encourage a successful
work-life balance.

reimbursement through the Adoption Assistance Programfor adoptive parents, fertility benefits for women including
cryopreservation, and coverage for gender-affirming surgery
and voice therapy for transgender team members.

Sound Living, HARMAN’s health and wellness program,works by giving our employees opportunities to reduce theirhealthcare costs by earning incentives, totaling up to $800,
by completing a variety of well-being activities.

HARMAN also encourages giving back on company time,allowing US-based employees 8 hours of paid time off
annually to volunteer at an organization(s) of their choosing.

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 toa Diabetes Management Program and Sleepio, a program
designed to improve sleep. To complement the medical
plans, HARMAN provides additional support, information,and coaching on healthcare questions and issues throughSound Living. In 2021, our US benefits and Human Resources
teams spearheaded new benefits including a $10,000

HARMAN global teams have received accolades for theircommitment to responsible business practices, including
several notable awards within HARMAN countries ofoperation. In 2021, HARMAN’s Mexico teams wererecognized with distinction for the following:• Federal Distinctive “Family Responsible Company” Award• Federal Work and Social Provision Department Gold Medal• Mexican Center for Philanthropy’s Socially Responsible
Company

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Embracing a Work-Life Balance

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pandemic. Answering calls from our employees forincreased 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.

HARMAN encourages work-life balance through a variety
of programs that address commitments associatedwith changing life stages and personal milestones. For
families, HARMAN is proud to offer 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 selfselect. Understanding work-life balance is ever evolving,
HARMAN also offers balancing services like helping findchild or elder care, pet care, and college planning.

Recruitment
HARMAN promotes career development of our employees
through HARMAN University and mentorship glide paths
such as the HARMAN University Alumni Network. We alsoprioritize diverse and inclusive hiring practices for thosepositions which cannot be fulfilled internally.

HARMAN formalized commitments to strengthening
flexible working arrangements through HARMAN Flex,
a work-from-home policy during the ongoing COVID-19

A full overview of our employee hiring and turnover
metrics for 2021 can be found in the 2021 GRI Index.

Diversity, Equity, and Inclusion

Women in Tech

As a global organization, Diversity, Equity, and Inclusion(DE&I) is built into HARMAN’s core values, driven from the
top and embedded throughout day-to-day operations. We
believe a diverse workforce fosters an ongoing cultureof uniqueness that spurs innovative thinking that directly
correlates with corporate growth. HARMAN has DE&I
ambitions and is committed to reporting progress anddemonstrating improvement and advancement toward amore equitable and inclusive team. Our GRI Index details
HARMAN’s complete employee DE&I breakdown.

At HARMAN, we know that a diverse, equitable, and inclusive
culture drives better results. We are better together, andwe need everyone to be part of this journey. We have a
responsibility to shift the trajectory of women entering ourindustry and support those who do. We are proud of ourfemale representation throughout HARMAN but know we cando better. Not only through recruitment, but through fosteringa supportive and inclusive environment, can we ensure thelong-term success of all our employees.
With more than 100 employees, both men and women,
the HARMAN Women’s Network (HWN) is our largest
global Employee Resource Group and has provided avaluable roadmap for engaging HARMAN employees
from other communities to form more Employee
Resource Groups (ERGs).

DE&I Learning Journey
Through HARMAN University, the DE&I Learning Journey
provides an educational platform to deliver curriculum
allowing Leaders, Human Resources, and employees tounderstand 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 such 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”, whichteaches leadership tactics to encourage psychologicalsafety and authenticity at work.

Through local HWN Chapter Leaders and Corporate sponsors,
we have hosted International Women’s Day campaigns on#BreaktheBias, panels on supporting and celebrating parents
and caregivers, and have worked to connect women within
HARMAN to support their return from maternity leave with amentorship program that connects female engineers who’ve
successfully balanced work and home commitments withbeing new mothers.

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We are dedicated to making
every employee feel welcomed,valued, and empowered. We
value a diverse and inclusive
culture, but in order to make thispossible we need everyone to beon board. Together we can drive
the change we want to see.

Employee-Led Activism
With more than 30,000 global employees, our HARMAN family represents the diversityof the world that we live in. Through our robust DE&I annual programming, we regularly
host panel discussions and 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 continue to work to establish meaningful goals to increase and improve thediversity of our global workforce. We look forward to continued success in this area.

—Lorena Loya, HARMAN
International Vice President ofDiversity, Equity, & Inclusion

Employee Health and Safety
Communication: Our Occupational Health, Safety,
Environmental, and Energy commitments are communicatedto employees, and client suppliers, and available to the public
upon request.

HARMAN drives health and safety efforts through acomprehensive environment, health, safety, and security(EHSS) management system and our Occupational Health,
Safety, Environmental, and Energy Policy. All employees,
no matter their function or location, are provided with asafe and environmentally sound working environment
through a broad range of initiatives:

Continuous Improvement: HARMAN is committed tocontinuous review of objectives and targets to evolve ourpolicies and practices, with the consultation and participationof employees and other stakeholders.

Employee Protection & Well-being: HARMAN is committed
to a workplace free of known hazards, to prevent injuries anddeterioration of health, following recognized ISO guidelines.
A full list of certified sites can be found in the GRI Index.

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 every cutting-edge technology and solution they offer.

Compliance: HARMAN is committed to implementing
processes that ensure compliance with all applicablecountry, state, and local laws, and conformance to all otherapplicable requirements.

Ethics and Transparency
HARMAN requires ethical behavior and transparency from both our employees and our supply chain. Each decision we make hasripple effects, so we must carefully consider every action to ensure consistency with our Employee Code of Conduct and sharedvalues. 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.

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Value Chain Engagement
Throughout our value chain, we are making strides to build multi-stakeholder partnerships and innovatearound end-of-life initiatives for our customers.
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.

Supply Chain Management
A safe and responsible supply chain is imperative for thehealth of our employees, workers, and the environment.
HARMAN communicates sustainability performance
expectations to suppliers through our supplier sustainability
engagement program, Amplify Progress, which was formallylaunched in 2021. HARMAN’s Supplier Code of Conduct isalso available on our website.

Resilient Supply Chain

Human Rights and Fair Labor Practices
Our labor and human rights management approach is guided
by policies that apply to HARMAN employees, suppliers,
and sub-suppliers. The policies prohibit the use of forced
or compulsory labor, child labor, and participation in humantrafficking. At HARMAN we have a zero-tolerance approach tomodern slavery and are fully committed to preventing slavery
and human trafficking in our operations and supply chain.

Responsible Minerals Sourcing
HARMAN 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 fromconflict countries and zones. HARMAN relies on suppliercollaboration to reach conflict‐free status and expects that
suppliers establish their own conflict mineral policy, perform
due diligence within their supply chains, and complete
HARMAN’s conflict minerals survey. HARMAN is dedicatedto embedding social responsibility into our global supply
chains, which we support through our participation in the
Responsible Business Alliance (RBA).

HARMAN Employee Spotlight: Lily Guo, VP of
Global Operations, Lifestyle Consumer Audio:
As a senior operations executive at HARMAN, Lily
Guo champions strategic initiatives that maximize
HARMAN’s 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 theemergence of a global semiconductor shortage.
Her ability to optimize the company’s supply chain
processes by remaining forward-looking prepares
her team well for unique challenges that lie ahead,especially in a climate-uncertain future.

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, andwe survey our global supply chain for conflict minerals toreasonably assure that our products are conflict-free. We do

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Supply Chain Transparency
HARMAN’s supplier requirements are outlined in our Supply Chain Sustainability Policy, which affirms our commitment tosustainable procurement and engagement with suppliers on issues related to diversity, equity, and inclusion. The policy is built
on three pillars that support a sustainable future in our supply chain and position HARMAN to continue to meet the demandfor exceptional products.

SocialResponsibility

Economic
Viability• Environmental Impact• Resources• Safe Products

Environmental
Responsibility

Sustainable Supply Chain• Diversity and Equal Opportunities• Fairness• Employee Health and Safety• Respect for People and Communities• Economic Contribution• Innovation• Compliance

Collaboration

We ask suppliers to self-assess performance on various
practices related to corporate social responsibility (CSR).
Our Supply Chain Risk Management team uses the CSR
Self-Assessment Questionnaire to collect, evaluate, andscore sustainability information from suppliers acrossindustries.

HARMAN’s products span many different industries
including automotive, electronics, consumer products, andmore. There are unique examples of collaboration in allareas and lessons to learn from each sector as we pursue alower carbon and more equitable future.

We piloted an expansion of supplier questionnaires in
2021, engaging around 300 suppliers (representing 75% ofsuppliers by total procurement spend) via an internal CSR
Sustainability Survey. The results of the survey will be used
to identify risks and inform our strategy to reduce our scope
3 emissions.

External Engagement and Partnership
Being a good value chain steward involves transparent
reporting and disclosure of key ESG issues relevant to ourcustomers and other stakeholders. HARMAN is an annual

Our efforts thus far represent our evolved strategy related
to Supplier Monitoring and Engagement, which allows us tomake informed decisions using environmental, health, andsafety criteria. We are also better able to identify key areas
where further education and partnerships are needed. In thisway, we are working to ensure a resilient supply chain, basedon transparency and collaboration.

respondent to CDP as well as Walmart’s Project Gigaton,
which recognized HARMAN for “Sparkling Change” in
2021. HARMAN also responds to the EcoVadis businessratings, and in 2021, HARMAN received a Silver Rating,meaning our performance was within the top 25 bestcompanies in our peer group. HARMAN has also beenrecognized by General Motors as a Top Supplier for two
consecutive years (2020, 2021) for displaying outstandingachievement across certain key priorities including
sustainability and innovation.

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Product End-of-Life Innovation

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Other initiatives to expand existing take-back and recycling
programs are already underway. Launching in 2022,
HARMAN is collaborating with Homeboy Electronics andCall2Recycle® 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 theimpact of e-waste on the environment.

End-of-life initiatives are becoming imperative in theelectronics industry as we work to close the loop andrecycle precious materials. HARMAN is making a concerted
effort to empower end-users to give our products a second
life and extend the useful life of our products.
Take-back & Recycling Schemes
Giving 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 various
national product stewardship programs to continue to expand
product takeback opportunities.

Refurbishment
HARMAN is exploring the potential for refurbishment
programs to extend the useful life of our products,
particularly within the Consumer Audio Group. This isa dimension of sustainability that we plan to continue
monitoring, as it has important implications for consumer
experience and product environmental impact and allows ourteam to stay ahead of emerging waste-related legislation.

In the United States, HARMAN is a Steward with theCall2Recycle® program focused on the takeback and recovery
of batteries and power banks. Useable metals are extracted
and recovered to be recycled into new products.
For more information and drop-off locations,visit https://www.call2recycle.org/.
In Brazil, HARMAN consumer electronics and speakers canbe recycled through the Green Eletron program. The programprovides collection/drop-off points throughout Brazil at retailand other locations. The program coordinates environmentally
appropriate final destinations for the e-waste. For more
information, visit https://greeneletron.org.br/blog/.

In Closing
Through our Sound Purpose, HARMAN has come a longway in our journey toward creating a more sustainable
future. We are excited and proud to share the impactthat we have made and what we have learned along
the way. Through ambitious climate targets, emissions
reduction initiatives, the use of more sustainable
packaging and renewable electricity, as well as diverseand sustainable supply chain practices, HARMAN
envisions a future that is brighter for all.

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 ourSound Purpose.
—Michael Mauser, HARMAN International President and CEO

All external requests for additional information should be sent to: OneHarmanESG@harman.com.

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