Impact

Over the years, HARMAN has evolved to maintain our place at the cutting-edge of the industry. As we continue to strive to enhance life’s experiences with technological advancements and industry firsts, we are driven to always consider the responsible use of energy and water and to minimize waste.

On an operational level, HARMAN invested in a new third-party data management system in FY2015 to more effectively report environmental metrics from our global operations. The contracted system provides energy use and utility cost information, so that we can better track progress toward our energy reduction goal and identify even more effective strategic approaches to facility optimization.

Our businesses have developed new packaging designs that reduce the amount of material consumed and ultimately disposed of, and our manufacturing sites have been consolidated closer to key customers, saving on transportation costs, reducing fuel consumption and cutting environmental emissions. In addition, recycling and reuse programs are in place across HARMAN facilities worldwide.

We are dedicated to full transparency and disclosure of our policies, initiatives and associated metrics. This report is just one way we share our sustainability story with our stakeholders. We also provide responses to:

CDP Climate
CDP Supply Chain
Business Roundtable Sustainability Report
United Nations Global Compact Communication on Progress
Sustainalytics
Customer-specific questionnaires

In FY2016, HARMAN launched an intranet site, which allows employees to track their environment footprint, as well as to easily find local volunteer opportunities.

Energy

HARMAN has taken decisive steps to reduce energy usage and carbon emissions in our facilities across the globe. Following a successful pilot program to reduce fuel consumption and emissions at several of our largest facilities, we extended our goal to achieving a 10 percent energy reduction target by FY2017 at every HARMAN site worldwide in an initiative called the Corporate Energy Challenge. Our energy reduction management system, as well as facility-specific energy reduction initiatives furthered our progress towards this goal. We met this goal in FY2014 and have maintained more than a 10 percent energy reduction since.

But we haven’t stopped there. Our staff and outside energy experts have performed a number of energy assessments to accurately determine baseline usage and uncover further opportunities for improvement.

Worldwide Energy Reduction
Management System

Our worldwide energy reduction management system, which uses a traditional Plan-Do-Check-Act cycle along with elements of ISO 50001 strengthens our approach to energy management. Teams around the globe are responsible for identifying goals and targets, setting key performance indicators (KPIs) and executing projects to drive continuous improvement. Under this program, energy usage is closely tracked on a monthly basis across several HARMAN production facilities.

Normalized energy use

Energy use

An increase in total energy use occurred between FY2015 and FY2016 in part, due to the acquisition of Symphony Teleca facilities and a new data management system. On an operational level, HARMAN invested in a new third-party data management system in FY2015 to more effectively report environmental metrics from our operations around the world, including energy use and utility cost information, so that we can better track progress toward our energy reduction goal and identify even more effective strategic approaches to facility optimization. Launching the new system, coupled with increased communications with our global facilities through the Sustainability Council, resulted in a more robust data set compared to previous years. The 2016 report includes data from some of our R&D facilities and non-manufacturing locations such as legacy Symphony Teleca operations. In FY2017, we will evaluate our scope of operations and prepare a formal approach for future metrics reporting.

Our Corporate Energy Challenge goal seeks to improve energy efficiency from a baseline of 25.3 to 22.8 kWh per $1000 net sales. Net sales was chosen as a normalization factor since HARMAN facilities produce a number of different components at different facilities and subassembly production occurs across several locations.

To reduce our overall environmental footprint and lessen our reliance on critical resources while increasing operational efficiency, we’ve implemented a number of powerful energy-saving initiatives across our facilities worldwide.

Our global operations participate in environmental awareness and volunteer activities and initiatives
In our Tijuana facility, adjustment in operation shift hours helps avoid high rate hours
Also in Mexico, we merged transportation services to cut back on fuel use and generation of greenhouse gases
In Karlsbad, we implemented an energy management system to help evaluate energy use and emissions generation from operations
Facilities in China and India have updated and switched controls to optimize electricity use
Financial optimization calculations include a focus on energy efficiency measures on a facility-by-facility basis

HARMAN’s Novi, Querétaro and Juárez teams recently were honored with Subaru’s Environmental Sustainability Award as they worked to achieve Subaru’s requirements for environmental excellence. Focusing on quality, innovation, collaboration and sustainability, the teams in Novi, Querétaro and Juárez collaborated across locations to meet the high standards required to earn the award:

A company-wide sustainability program with targets
Maintain ISO14001 Certification
Implementation of Environmental Kaizen that reduces CO2 or waste
Improve energy efficiency by 2 percent
Participate in at least one community environmental project or event
Establish or maintain on-site recycling containers for employees to bring in non-production waste for recycling (Querétaro)

Water

HARMAN fully recognizes the importance of good water stewardship to meet the needs of communities and our ecosystem. While our production processes themselves are not water intensive, we have evaluated the risks associated with the watersheds in which we operate and have engaged with stakeholders to help mitigate environmental concerns.

In 2016, HARMAN received a request to respond to CDP’s water disclosure program. We declined on the basis that aspects of water stewardship (e.g., water use, wastewater management) were not identified as “material” in our 2016 Materiality Assessment refresh. We recognize the importance of water stewardship and we will continue to monitor and measure the water used in our processes, to identify opportunities for water conservation in our operations and throughout our value chain, and to gain a comprehensive understanding of HARMAN’s environmental impacts. The 2016 report includes data from some of our R&D facilities and non-manufacturing locations such as legacy Symphony Teleca operations.

Similar to our energy management approach, HARMAN uses a traditional Plan-Do-Check-Act cycle to monitor and optimize water management at its production facilities and is committed to the principles of continual improvement in water use efficiency. Our water usage over the reporting period has increased in part due to the acquisition of several Symphony Teleca locations as well as a more comprehensive and complete data collection process. However, when normalized, FY2016 water use shows an overall decrease compared to FY2012.

Graph of water usage over the past 5 years

Our operations are conscious of water use and maintain a drive for operational excellence.

Climate

HARMAN is committed to supporting climate-impact mitigation measures. Through ancillary HARMAN technologies we’ve taken decisive steps to save on energy usage and reduce carbon emissions across our global value chain.

Our Operations

Our company-owned operations generate greenhouse gas emissions primarily through the combustion of fuels on-site (Scope 1) and through the purchase and usage of grid electricity (Scope 2). The emissions generated from electricity purchases are the dominant contributor to total emissions.

Graph of climate emissions over the past 5 years

Emissions management is an important part of the way we do business. Company-wide programs like our Corporate Energy Challenge and Earth Day Awareness promote awareness and action among employees at all our facilities. These initiatives have led to the completion of more than 25 energy conservation projects with potential annual emissions avoidance amounts of approximately 9,900 carbon dioxide equivalent (CO2e).

Our facilities reduced emissions through a number of innovative initiatives in FY2015.

Various global locations

Replacing fluorescent lighting with LED lights has an estimated annual savings of 439 metric tons CO2e

India

Electricity saving efforts, including paralleling and repositioning of UPS stands, providing switch control lights at connecting bridges in all floors, and optimizing transformer use have saved an estimated 344 metric tons of CO2e
Improved employee transportation has led to an estimated annual CO2e savings of 286 metric tons by removing small segment vehicles and introducing the mid-segment vehicle
Switching off and changing the UPS system to Optimum use of PAC & AHU has saved approximately 247 metric tons of CO2e

Mexico

In Tijuana, changing the wood mill operation shift hours from six days a week to four days a week to reduce operation time has helped optimize energy consumption and avoid high-rate hours, ultimately saving an estimated 205 metric tons of CO2e.
HARMAN also merged transport services in Tijuana to save on fuel and transportation costs, which has reduced potential emissions creation.
Our Querétaro facility in Mexico leads the annual Reciclon HARMAN campaign, promoting recycling and increasing e-waste collection by 30 percent each year by becoming an e-waste collection center; these initiatives have resulted in an estimated annual CO2e reduction of 3,329 metric tons.
Also in Querétaro, we plant 50 trees per year in the annual reforest campaign to commemorate environmental international day, displacing 3.67 kg of CO2 emissions for every kilogram of carbon that makes up a tree¹

^1. R.Jandl, L.Vesterdal, M.Olsson, O.Bens, F.Badeck, J.Rock (2007). Carbon sequestration and forest management. CAB Reviews: Perspectives in Agriculture, Veterinary Science, Nutrition and Natural Resources, 2007, 2, No. 017, 16 pp.

Ecometrica (2011). A one ton carbon tree.

Europe

Using CAN Partial Network and moving to newer technology has enabled us to reduce power consumption in our devices
We have increased the share of our suppliers who are ISO 14001 certified, implemented energy management systems and reduced carbon dioxide emissions within our leasing fleet
Replacing two inefficient vending machines with one energy-efficient machine in our Louth facility has realized an estimated savings of about 0.8 metric tons of CO2e
The implementation of energy awareness training has helped employees in our facilities understand ways to better manage their own energy use

Corporate travel

A company-wide embrace of Virtual Meetings reduces the need for employee travel, helping reduce our carbon footprint.

In addition to reducing greenhouse gas emissions through more efficient usage of electricity in our production facilities, a number of other initiatives are being implemented to further reduce carbon throughout the value chain.

Our Customers

Our OEM customers have already made significant advances in reducing vehicle weight and power consumption, while incorporating new engine and drive train technologies to further improve fuel efficiency — and HARMAN is right there with them. Our GreenEdge® audio and infotainment systems reduce weight and improve power efficiency compared to previous systems for automotive applications, without compromising their exceptional performance. And with our HALOsonic® sound-management solutions, we’re helping in a new generation of electric and hybrid vehicles, making them safer and more comfortable for passengers.

As we continue to develop our Supply Chain and Procurement Program, we will evaluate opportunities to engage with our suppliers on sustainability initiatives such as emissions management.

The tracking of emissions is measured both on an absolute basis and a normalized basis. Similar to energy usage, net sales was chosen as a normalization factor for greenhouse gas emissions since HARMAN facilities produce a wide range of components at our various facilities and subassembly production occurs across several locations.

Emissions increased between FY2015 and FY2016, in part due to the acquisition of six Symphony Teleca locations in April 2015 and data inclusion from operations that were unable to respond in previous years. On an operational level, HARMAN invested in a new third-party data management system in FY2015 to more effectively report environmental metrics from our operations around the world, including energy use and utility cost information, so that we can better track progress toward our energy reduction goal and identify even more effective strategic approaches to facility optimization. Launching the new system, coupled with increased communications with our global facilities through the Sustainability Council, resulted in a more robust data set compared to previous years. The 2016 report includes data from some of our R&D facilities and non-manufacturing locations such as legacy Symphony Teleca operations. In FY2017, we will evaluate our scope of operations and prepare a formal approach for future metrics reporting.

As we look to the future, we will continue to promote greater energy efficiency with a primary focus on electricity to drive further reductions in greenhouse gas emissions.

Graph of normalized emissions over the past 5 years

Waste generation and recycling

Waste reduction and recycling is a high priority at HARMAN, and we are committed to the principles of continual improvement in reducing the amount of waste generated.

As with energy and water management, HARMAN uses a traditional Plan-Do-Check-Act cycle to approach waste management at our production facilities.

Capturing the amount of waste generated at our facilities helps us identify opportunities for improvement, such as recycling and reduction. Although waste was not identified as “material” based on feedback from internal and external stakeholders as part of our 2016 Materiality Assessment refresh, we will continue to collect waste data from our manufacturing, research & development and non-manufacturing facilities, such as legacy Symphony Teleca operations.

We recognize the importance of waste reduction in our operations and will continue taking action to better approach waste management. Waste data for several facilities was not available at the time of this report (detailed in the Key Data Summary). In FY2017, we will evaluate our scope of operations and prepare a formal approach for future metrics reporting.