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Environmental

Making our communities better through a people-centered culture and a commitment to responsible operations.

Environmental

Making our communities better through a people-centered culture and a commitment to responsible operations.

Our Corporate Sustainability Strategy

Our corporate sustainability strategy is part of our Guiding Principles’ commitment to being a leader in protecting and enhancing our world, because the environment is our home. This principle shapes our approach to sustainability and serves as a reminder of the importance of our actions and decisions. We are committed to reducing our environmental impact and promoting sustainability in all aspects of our business.

Continuous improvement is a key aspect of our sustainability strategy. We set clear sustainability goals and regularly review our progress towards achieving them, including our ultimate goal of zero greenhouse gas emissions by 2050. We continuously monitor, evaluate, and improve the environmental impact of our products, services, and supply chain, incorporating sustainable practices into our daily operations and decision-making processes. We also invest in technology and innovation to drive sustainability and reduce emissions. We seek common benchmarks and methodologies for reducing our environmental impact, and we are committed to regularly monitoring our progress towards reducing emissions and our energy and water usage. We have implemented and will continue to maintain appropriate environmental management systems in our business.

We avoid and minimize the impact of business practices that conflict with our sustainability goals or that have negative environmental or social impacts. We also expect all of our operations and those of our suppliers, contractors, and business partners to adhere to our sustainability standards, and we conduct due diligence to ensure alignment. Additionally, we educate and engage our internal and external stakeholders on the importance of sustainability and provide them with tools and resources to raise their awareness of environmental issues, to reduce their personal environmental impact, and to live sustainably.

By following these principles, we hope to serve as a leader in environmental protection and enhancement for future generations.

At Kimball Electronics, Safety is a Value

KE strives to create safe and secure workplace environments with an injuryfree culture, truly believing that all injuries can be prevented. Employees are expected to work safely, follow safety policies and regulations, report unsafe conditions, and wear appropriate safety equipment. The Safety, Environmental, and Facility Policy at KE emphasizes that safety is a value— unlike priorities, values never change. KE promotes awareness and education among employees with the goal of eliminating exposures, or risks, that create unsafe conditions and behaviors.

ENVIRONMENTAL GOALS

Renewable Energy

KE is committed to investigating renewable energy options, including embracing solar energy. A recent success was the implementation of our company’s first solar energy system at our Thailand manufacturing facility. The 136-kilowatt solar energy system represents 8% of our facility’s electrical load. In 2023, we plan to implement solar energy systems at our manufacturing facilities in Poland, Mexico, and Romania, while expanding the Thailand system by an added 850 kilowatts, which will represent 56% of our electrical load in Thailand.

Photo: Our safety, environmental, and facilities leaders from around the world met for face-to-face, strategic discussions in Indianapolis.

2014–2022 Environmental Success

We can have a positive impact on our environment. We strive to reduce our energy and water usage and greenhouse gas footprint. That starts with our local environment, health and safety teams, and their sharing of best practices globally. The percentages above reflect usage decreases on a per-unit produced basis from 2014 to 2022. This progress is even more amazing when you consider that we have more than doubled sales and added and expanded several facilities over this time.

13%

reduction in water usage

36%

reduction in greenhouse gas

42%

reduction in hazardous waste

26%

reduction in air emissions

We recycled or reused 92% of our waste in 2022.

Environmental Achievements

Our culture is a recipe for always doing the right thing globally. Essentials to success include keeping our people safe, keeping the environment clean, and keeping our factories in excellent condition. Here are specific things we are doing or have achieved recently in our global facilities that support our commitment to environment, health, and safety.

OUR ENVIRONMENTAL ACHIEVEMENTS

Our corporate environmental, health, and safety beliefs:

Environmental Management

Our Environmental Management System is the foundation of our environmental best practices globally. We have developed a robust environmental management system and all of our production facilities are ISO 14001 certified.

Carbon & Climate

We have participated in the Carbon Disclosure Project (CDP) since 2011 to help drive continuous improvement. We focus on increasing the efficiency of our electrical energy usage and reducing greenhouse gas emissions. We utilize cost effective technology to help drive efficiencies. See our latest CDP climate report.

Natural Resources

We are focused on decreasing water usage and increasing water recycling, and we have participated in the CDP water security questionnaire since 2019. Each location undergoes wastewater testing to ensure that we are compliant with regulations. See our latest CDP water report.

Waste, Toxicity, and Air Emissions

Each of our facilities meets or even exceeds applicable air emissions standards, and we have procedures in place for the handling of our hazardous waste. We strive to reduce hazardous and non-hazardous waste and landfill usage. We focus on the reuse and recycling of our packaging material.

Health & Safety

We strive to provide all employees with a safe place to work. Employees are expected to work safely, follow safety policies and regulations, report unsafe conditions, and wear appropriate safety equipment. KE strives to create safe and secure workplace environments with an injury-free culture, truly believing that all injuries can be prevented. The Safety, Environmental, and Facility Policy at KE emphasizes that safety is a value—unlike priorities, values never change. Kimball promotes awareness and education among employees. We are in the process of implementing ISO 45001 across the enterprise. Seven of our nine manufacturing facilities have implemented it, and five have achieved external ISO 45001 certification. Our 2022 recordable injury rate was 0.26, and our 2022 lost-time injury rate was 0.06.

kimball electronics logo in the footer

World Headquarters
Kimball Electronics, Inc.
1205 Kimball Blvd.
Jasper, IN 47546

www.kimballelectronics.com

2022 Environmental, Social
and Governance Report