Integrity and accountability are embedded in our governance approach. Through robust oversight, ethical leadership, and third-party validation of key performance indicators, we ensure that sustainability is a core element of our decision-making at every level. We hold ourselves accountable to our stakeholders and strive for transparency in our progress.
HARMAN International's governance structure is based on a strong foundation of ethical leadership, transparent decision-making, and accountability. These principles influence every aspect of its operations—from protecting human rights and upholding fair labor practices to integrating sustainability throughout the value chain.
To ensure executive commitment and oversight, HARMAN's President and CEO is responsible for overall corporate sustainability performance. The President and CEO cascades sustainability targets to the Senior Leadership Team aligned to organizational goals and objectives. The Senior Leadership Team is supported by its ESG Steering Committee and Corporate ESG team. The ESG Steering Committee is comprised of senior leaders in the organization including the CEO, CFO, CLO, CHRO among others. The executives and experts serving on these committees were selected because they represent the critical points of intersection between sustainability performance and business operation. At the beginning of each year, HARMAN's Senior Leadership Team sets the business goals to be achieved by the end of that financial year. Performance against these targets is managed in accordance with operational norms, and progress is reported the HARMAN President and CEO and the ESG Steering Committee on a quarterly basis. At the heart of HARMAN's corporate philosophy is an unwavering commitment to conducting business the right way—with integrity, responsibility, and foresight.
HARMAN believes that ethical business practices and the protection of human rights are essential to our global operations and long-term success. We embed these principles into trade, procurement, and supply chain management through advanced compliance systems, risk-based due diligence, and responsible sourcing practices.
Our approach is aligned with the UN Guiding Principles on Business and Human Rights (UNGPs), the OECD Guidelines for Multinational Enterprises, and the UN Universal Declaration of Human Rights. Automated IT tools help us monitor sanctions, restricted parties, and geopolitical risks in real time, ensuring compliance with evolving trade regulations and reducing reputational and operational risks.
We also follow the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, working with suppliers to trace the origin of tin, tantalum, tungsten, and gold (3TG) and engaging through the Responsible Minerals Initiative (RMI).
Our global Employee Code of Conduct and Supplier Code of Conduct set expectations for all employees, suppliers, contractors, and partners, mandating compliance with anti-corruption laws including the U.S. Foreign Corrupt Practices Act (FCPA), the UK Bribery Act, and local legislation.
The Supplier Code prohibits bribery, facilitation payments, insider trading, conflicts of interest, and human rights abuses of any kind. We enforce a strict zero-tolerance policy on forced labor, child labor, harassment, discrimination, and unsafe working conditions, requiring suppliers to uphold fair pay, safe workplaces, and freedom of association. Compliance is monitored through third-party audits, self-assessments, grievance mechanisms, and supplier engagement, with remediation plans in place where needed.
In a rapidly evolving digital world, HARMAN places cybersecurity at the forefront of its operations. The company's product and service cybersecurity management system is certified under the ISO/SAE 21434:2021 standard, reinforcing its role as a trusted partner in the connected mobility and audio technology sectors.
To ensure resilience, HARMAN requires suppliers to implement strong information security measures, regularly test and evaluate their systems, and collaborate proactively to prevent cyber incidents. These expectations are formalized in HARMAN's Product and Service Cybersecurity Policy, which also gives the company the right to conduct its own assessments.
HARMAN's approach to risk management demonstrates a forward-looking mindset that incorporates enterprise risk into daily decision-making. Through its enterprise risk management framework, known internally as HARMS, the company identifies, assesses, and monitors a wide range of risks—including strategic, financial, regulatory, operational, and digital.
HARMS is integrated across business units and functions to ensure effective cross-functional coordination and continuous improvement. Risks and mitigating actions are registered on a common platform, and risks are categorized based on their impact and likelihood as defined in the framework. Risk assessment and action progress is regularly reviewed, enabling risk owners to adjust priorities, remove obsolete risks, and focus on current and emerging threats that require closer monitoring.
This structured approach enables HARMAN to stay ahead of emerging threats, align its risk appetite with strategic goals, and enhance business continuity. Risk assessments are regularly reviewed, with governance oversight at the executive and board levels.
Sustainability extends throughout our value chain. HARMAN has been an affiliate member of the Responsible Business Alliance (RBA) since 2022, demonstrating our commitment to upholding established standards of labor, ethics, and environmental performance throughout our supply chain. The RBA Code of Conduct, aligned with international norms such as the ILO and OECD, guides our approach to supplier responsibility.
Through this membership, we apply a risk-based due diligence process that includes supplier self-assessments, risk mapping, and independent third-party audits. To date, three of our automotive manufacturing facilities in Mexico and Hungary have undergone RBA Validated Assessment Program (VAP) audits, helping us identify and close gaps through corrective action plans.
Our participation also extends to RBA initiatives that address systemic risks, including:
This report marks a pivotal moment in our sustainability journey. Our ambitious sustainability goals reflect our belief that meaningful progress requires bold purpose and measurable action. We're investing in renewable energy, low-carbon innovation, and circular design to drive impact across our operations and supply chain. But sustainability at HARMAN goes beyond environmental metrics—it's embedded in our culture of inclusion, transparency, and long-term value creation. We're building a future where our solutions help customers.Tamika Frimpong
HARMAN maintains a comprehensive compliance framework centered on ethical business conduct, legal adherence, and responsible supply chain management. We enforce a robust enterprise Code of Conduct that covers integrity, fair competition, data protection, international trade controls, and environmental health and safety standards both internally and externally. HARMAN holds yearly global compliance trainings for all employees and measures its performance across business units
For the last two years, HARMAN employees have participated in HARMAN's Annual Global Trade Compliance (GTC) Week—a week dedicated to increasing awareness, deepening understanding, and promoting compliance with international trade regulations across our global teams.
We will continue embedding sustainability into every aspect of our operations, products, and partnerships. In the coming year, results from our double materiality assessment will shape our strategy and disclosures, ensuring we remain aligned with stakeholder expectations and global standards.
Our commitment is clear: sustainability is not an endpoint — it is how we will continue to innovate, create value, and build a more resilient business for the future.