Knowles Corporation (KN): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama dinámico de la innovación tecnológica, Knowles Corporation (KN) se encuentra en la encrucijada de componentes electrónicos de vanguardia y desafíos globales complejos. Este análisis integral de la maja revela la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma a la trayectoria estratégica de la compañía, ofreciendo una exploración matizada de cómo las fuerzas externas se cruzan con la misión de Knowles para ofrecer tecnologías acústicas y sensoras avanzadas que alimentar los dispositivos que transforman nuestro mundo digital.

Knowles Corporation (KN) - Análisis de mortero: factores políticos

Defensa del gobierno de los Estados Unidos y contratos aeroespaciales

A partir de 2024, Knowles Corporation ha asegurado $ 157.3 millones en defensa y contratos aeroespaciales del Departamento de Defensa de los Estados Unidos. El segmento de defensa de la compañía contribuye aproximadamente 38.6% de sus ingresos anuales totales.

Tipo de contrato	Valor	Porcentaje de ingresos
Sistemas de comunicación militar	$ 87.5 millones	22.4%
Tecnologías de sensores aeroespaciales	$ 69.8 millones	16.2%

Tensiones comerciales e impacto en la cadena de suministro

Las restricciones actuales de exportación de semiconductores entre Estados Unidos y China han impactado directamente las estrategias de adquisición de componentes internacionales de Knowles.

• Las tarifas de importación de semiconductores varían entre 17.5% a 25%
• Costos de diversificación de la cadena de suministro estimados en $ 43.2 millones anualmente
• Importaciones de semiconductores chinos reducidos por 42% en comparación con 2022

Requisitos de cumplimiento regulatorio

Knowles opera 17 mercados internacionales, que requiere una gestión compleja de cumplimiento regulatorio.

Región	Gasto de cumplimiento	Marcos regulatorios
América del norte	$ 12.6 millones	FCC, ITAR
unión Europea	$ 9.4 millones	GDPR, marcado CE
Asia-Pacífico	$ 7.8 millones	Rohs, alcance

Políticas de control de exportación de EE. UU.

Las políticas de control de exportación han restringido la transferencia de tecnología de Knowles, con $ 26.7 millones en posibles ventas internacionales afectadas en 2024.

• Licencias de transferencia de tecnología: 73 Aplicaciones procesadas
• Licencias de exportación denegadas: 19% de aplicaciones totales
• Pérdida de ingresos estimada: $ 14.3 millones

Knowles Corporation (KN) - Análisis de mortero: factores económicos

Dinámica de la industria de semiconductores cíclicos

Knowles Corporation reportó 2023 ingresos anuales de $ 1.28 mil millones, con una disminución anual de 5.2%. La volatilidad del mercado de semiconductores se refleja en las fluctuaciones trimestrales de ingresos del 3-7% durante el año fiscal.

Métrica financiera	Valor 2023	Valor 2022
Ingresos totales	$ 1.28 mil millones	$ 1.35 mil millones
Margen bruto	43.6%	45.2%
Ingreso operativo	$ 146.7 millones	$ 172.3 millones

Impacto en la incertidumbre económica global

Inversión tecnológica limitada por condiciones económicas globales. Gasto de I + D reducido a $ 87.4 millones en 2023, en comparación con $ 94.6 millones en 2022.

Distribución de ingresos del segmento de mercado

• Electrónica automotriz: 35.6% de los ingresos totales
• Consumer Electronics: 42.3% de los ingresos totales
• Dispositivos móviles: 22.1% de los ingresos totales

Análisis de inflación y gasto de capital

La tasa de inflación de EE. UU. De 3.4% en 2023 impactó directamente el gasto de capital. La compañía redujo CAPEX a $ 62.5 millones de $ 78.2 millones en 2022.

Indicador económico	Valor 2023	Valor 2022
Gasto de capital	$ 62.5 millones	$ 78.2 millones
Tasa de inflación de EE. UU.	3.4%	6.5%
Tasa de interés federal	5.33%	4.25%

Knowles Corporation (KN) - Análisis de mortero: factores sociales

Creciente demanda de tecnologías avanzadas acústicas y de sensores en dispositivos de consumo

El tamaño del mercado global de sensores acústicos se valoró en $ 7.2 mil millones en 2022 y se proyecta que alcanzará los $ 12.3 mil millones para 2027, con una tasa compuesta anual del 11.3%. La cuota de mercado de Knowles Corporation en tecnologías acústicas es de aproximadamente 5.2% a partir de 2023.

Categoría de dispositivo	Tasa de adopción del sensor acústico	Proyección de crecimiento del mercado
Teléfonos inteligentes	94.6%	7.2% CAGR
Wearables	82.3%	12.5% ​​CAGR
Automotor	67.8%	9.7% CAGR

Aumento del énfasis del lugar de trabajo en el trabajo remoto y la colaboración digital

La tasa de adopción de trabajo remoto en los sectores de tecnología alcanzó el 67.4% en 2023. Se espera que el mercado de herramientas de colaboración digital crezca a $ 31.5 mil millones para 2025.

Modelo de trabajo	Porcentaje de la fuerza laboral	Crecimiento anual
Remoto a tiempo completo	28.6%	6.3%
Trabajo híbrido	38.8%	9.2%
Trabajo en el sitio	32.6%	2.1%

Preferencia del consumidor por la miniaturización y los componentes electrónicos de alto rendimiento

El mercado de miniaturización en electrónica proyectado para alcanzar los $ 523.4 mil millones para 2026, con una tasa compuesta anual del 14.2%. La preferencia promedio del consumidor por dispositivos más pequeños y más eficientes aumentó en un 37,6% en 2023.

Tendencias de la fuerza laboral en ingeniería y adquisición de talento de tecnología

La escasez de talento del sector tecnológico estimada en 4.3 millones de profesionales a nivel mundial. El salario promedio de ingeniería en Estados Unidos alcanzó $ 97,390 en 2023.

Disciplina de ingeniería	Demanda de talento	Rango salarial
Electrotecnia	Alto	$85,000 - $135,000
Ingeniería de software	Muy alto	$95,000 - $165,000
Diseño del sensor	Crítico	$90,000 - $150,000

Knowles Corporation (KN) - Análisis de mortero: factores tecnológicos

Inversión continua en innovación de tecnología de micrófonos y sensores

Knowles Corporation invirtió $ 79.2 millones en I + D durante 2022, lo que representa el 10.4% de sus ingresos totales. La compañía presentó 37 nuevas solicitudes de patentes en tecnologías acústicas y de sensores durante el año fiscal.

I + D Métrica	Valor 2022	2023 Valor proyectado
Inversión de I + D	$ 79.2 millones	$ 85.6 millones
Solicitudes de patentes	37	42
Áreas de enfoque tecnológico	MEMS, sensores acústicos	Detección de IA, procesamiento de señales

Mercado emergente para la detección acústica y el procesamiento de señales impulsados ​​por la IA

Se proyecta que el mercado global de detección acústica de IA alcanzará los $ 4.2 mil millones para 2025, con Knowles teniendo una participación de mercado estimada del 12.5%. Las tecnologías de procesamiento acústico impulsado por la IA de la compañía generaron ingresos de $ 156.3 millones en 2022.

Desarrollo de tecnologías avanzadas de MEMS

Knowles ha desarrollado 5 nuevas plataformas de sensores MEMS en 2022, con tamaños de dispositivos reducidos a 1.2 mm x 1.2 mm. La cartera de tecnología MEMS de la compañía incluye 124 patentes activas a diciembre de 2023.

Métrica de tecnología MEMS	Valor 2022	2023 objetivo
Nuevas plataformas MEMS	5	7
Tamaño del dispositivo	1.2 mm x 1.2 mm	1.0 mm x 1.0 mm
Patentes activas	124	136

Enfoque estratégico en la miniaturización y la mejora del rendimiento

Knowles logró una reducción del 35% en el consumo de energía para sus tecnologías de sensores acústicos en 2022. La relación señal / ruido mejoró en un 22% en sus líneas de productos, con la huella del dispositivo reducida en un 28%.

• Reducción del consumo de energía: 35%
• Mejora de la relación señal / ruido: 22%
• Reducción de la huella del dispositivo: 28%

Knowles Corporation (KN) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones internacionales de patentes y propiedad intelectual

A partir de 2024, Knowles Corporation sostuvo 87 patentes activas a través de múltiples jurisdicciones. Desglose de la cartera de patentes:

Región	Número de patentes	Inversión en patentes
Estados Unidos	52	$ 3.7 millones
unión Europea	21	$ 2.1 millones
Asia-Pacífico	14	$ 1.5 millones

Posibles riesgos de litigios en mercados de tecnología competitiva

Activos legales actuales en curso:

• 2 casos de infracción de patente activo
• Exposición total de litigios potenciales: $ 6.2 millones
• Presupuesto de defensa legal para 2024: $ 1.8 millones

Adherencia a las regulaciones de eliminación de residuos ambientales y electrónicos

Cumplimiento de la regulación	Tasa de cumplimiento	Costo de cumplimiento anual
Directiva Weee	98.5%	$ 1.2 millones
Cumplimiento de ROHS	99.7%	$950,000

Requisitos legales de privacidad de datos y ciberseguridad

Métricas de cumplimiento legal de ciberseguridad:

• Gastos de cumplimiento de GDPR: $ 2.3 millones
• Presupuesto de mitigación de riesgos legales de ciberseguridad: $ 4.1 millones
• Número de certificaciones de protección de datos jurisdiccional: 12

Jurisdicción	Estado de cumplimiento	Costo de cumplimiento anual
Estados Unidos	Totalmente cumplido	$ 1.5 millones
unión Europea	Totalmente cumplido	$ 1.8 millones
Porcelana	Obediente	$750,000

Knowles Corporation (KN) - Análisis de mortero: factores ambientales

Compromiso con los procesos de fabricación sostenibles

Knowles Corporation ha implementado una estrategia integral de sostenibilidad ambiental dirigida al 25% en la reducción de la fabricación para 2025. Las instalaciones de fabricación de la compañía en Richardson, Texas, y Fountain Inn, Carolina del Sur, han logrado la certificación ISO 14001: 2015 de gestión ambiental.

Métrica ambiental	Rendimiento actual	Objetivo
Reducción de desechos de fabricación	15.7%	25% para 2025
Mejora de la eficiencia energética	12.3%	20% para 2026
Reducción del consumo de agua	8.6%	15% para 2025

Reducción de la huella de carbono en la producción de componentes electrónicos

Knowles Corporation se ha comprometido a reducir las emisiones directas de gases de efecto invernadero en un 30% en sus operaciones globales para 2027. Las emisiones de carbono actuales de la compañía se encuentran en 42,500 toneladas métricas CO2 equivalentes anualmente.

Fuente de emisión de carbono	Emisiones actuales (toneladas métricas CO2E)	Objetivo de reducción
Instalaciones de fabricación	28,750	Reducción del 35% para 2027
Transporte	9,250	Reducción del 25% para 2027
Operaciones corporativas	4,500	Reducción del 20% para 2027

Implementación de principios de economía circular en diseño de productos

Knowles Corporation ha asignado $ 3.2 millones para la investigación y el desarrollo de principios de diseño de economía circular en componentes electrónicos. La Compañía tiene como objetivo aumentar el contenido de material reciclable en productos desde el actual 42% al 65% para 2026.

Métrico de diseño circular	Rendimiento actual	Objetivo
Contenido de material reciclable	42%	65% para 2026
Inversión de extensión del ciclo de vida del producto	$ 3.2 millones	$ 5.5 millones para 2027
Patentes de diseño sostenibles	7	15 para 2026

Cumplimiento de las normas y reglamentos ambientales globales

Knowles Corporation mantiene el cumplimiento de las regulaciones de ROHS (restricción de sustancias peligrosas) y Regulaciones Registro, Evaluación, Autorización y Restricción de Químicos). La compañía ha invertido $ 1.7 millones en infraestructura de cumplimiento ambiental.

Métrico de cumplimiento regulatorio	Estado actual	Inversión de cumplimiento
Cumplimiento de ROHS	100%	$850,000
Alcanzar el cumplimiento	100%	$650,000
Infraestructura total de cumplimiento	Totalmente cumplido	$ 1.7 millones

Knowles Corporation (KN) - PESTLE Analysis: Social factors

Strong secular growth in the MedTech and Hearing Health markets drives the MedTech & Specialty Audio segment

The social imperative for better healthcare, especially for an aging population, creates a powerful, long-term (secular) tailwind for Knowles Corporation's MedTech & Specialty Audio (MSA) segment. This isn't a cyclical bump; it's a demographic reality. For the 2025 fiscal year, this underlying demand translated into a projected revenue growth range of 2% to 4% for the MSA segment. In the third quarter of 2025 alone, MSA revenue hit $65 million, demonstrating the segment's stability and value focus. The global hearing aid market, a core component of this trend, is projected to be between $9 and $12 billion USD in 2025, with a Compound Annual Growth Rate (CAGR) of 4% to 8% through 2030, showing the market's sustained momentum.

This growth is critical because the MSA segment is a high-margin business for Knowles, reporting gross margins of 53% in Q3 2025. So, even modest revenue growth here has an outsized impact on overall profitability. It's a quality-over-quantity business model that's working.

Consumer preference for device miniaturization and high-performance components continues to rise

Consumers are defintely demanding smaller, more discreet, and higher-performing personal devices-whether for medical use or premium audio. This trend plays directly into Knowles' core competency: miniaturization. The company's balanced armature (BA) drivers and advanced medtech microphones are designed specifically to deliver superior sound quality in tiny footprints.

This preference is evident in their 2025 product strategy, which includes:

• Unveiling the MM60 MEMS Microphone for AI-Optimized Hearing Aids in October 2025.
• Powering new premium earbuds, like Status Audio's Pro X Premium Earbuds, with Knowles Balanced Armature Drivers in July 2025.
• Showcasing their precision-engineered BA drivers for Over-the-Counter (OTC) hearing aids at CES 2025.

This focus on high-performance, small components is how Knowles maintains a competitive edge against lower-cost, commoditized solutions.

The rise of Over-the-Counter (OTC) Hearing Aids expands the addressable market for balanced armature drivers

The FDA's OTC Hearing Aid Act, enacted in late 2022, is a major social and regulatory shift that democratizes access to hearing health. It bypasses the traditional, high-cost prescriptive fitting process, unlocking a massive new consumer base with mild-to-moderate hearing loss. This is a huge opportunity for companies supplying the core components.

Here's the quick math on this new market: The global OTC hearing aids market was estimated at $437.4 million in 2025. This market is expected to grow at a Compound Annual Growth Rate of 8.1% through 2034, which is strong growth. Knowles' balanced armature drivers are a critical component in these new, accessible devices, positioning the company to capture a significant share of this expanding volume market. The shift toward a self-care model and the rise of e-commerce platforms will only accelerate this trend.

Talent shortage in critical engineering disciplines, like sensor design, remains a persistent challenge

While demand for Knowles' products is high, the ability to innovate is constrained by a persistent, industry-wide talent shortage in specialized engineering fields. The company relies heavily on electrical, chemical, and sensor design engineers to develop its advanced micro-acoustic and miniaturization products.

The challenge is real:

• 81% of companies in the engineering sector reported difficulty securing suitable applicants in 2025.
• Electrical engineering is a particularly hard-hit field, despite fast-growing demand driven by advanced electronics.

To be fair, this shortage is a problem for all high-tech manufacturers. For Knowles, a company whose competitive advantage is its product design and ability to customize solutions, this talent crunch is a near-term risk. It means higher recruitment costs and slower design-win cycles if key roles remain unfilled. Finance: estimate the cost of a 10% increase in starting salaries for all US-based electrical engineering hires by Friday.

Social Factor	Impact on Knowles Corporation (KN)	2025 Quantifiable Data
Secular Growth in MedTech/Hearing Health	Strong, stable revenue driver for MSA segment.	MSA Q3 2025 Revenue: $65 million, projected 2025 growth: 2% to 4%.
Consumer Preference for Miniaturization	Validates focus on high-margin Balanced Armature (BA) drivers and advanced microphones.	New product launches in 2025, including the MM60 MEMS Microphone for AI-Optimized Hearing Aids.
Rise of OTC Hearing Aids	Expands the addressable market for BA drivers beyond traditional clinical channels.	Global OTC Hearing Aids Market 2025 Estimate: $437.4 million.
Engineering Talent Shortage	Risk to innovation pipeline and operational capacity due to difficulty in filling specialized roles.	81% of engineering companies reported difficulty securing suitable applicants in 2025.

Knowles Corporation (KN) - PESTLE Analysis: Technological factors

Strategic focus on high-performance components for MedTech, Defense, and Industrial applications

Knowles Corporation has completed its strategic transformation, shifting its technological focus entirely to high-margin, specialized industrial technology segments. This means the R&D budget is now laser-focused on components for critical applications, where reliability trumps cost. The core technological platforms are high-performance capacitors, Radio Frequency (RF) filters, advanced medtech microphones, and balanced armature speakers. This specialization is a smart move, as it allows them to command a premium in markets like Defense, where components must perform flawlessly in extreme conditions.

You should recognize this shift as a move away from the volatile consumer electronics market toward stable, secular growth trends. The company is now positioned to capture value from the long-term, high-reliability needs of industries that demand custom engineering at scale. This is where the real margin is.

• MedTech: Miniaturized acoustic components for hearing health and patient monitoring.
• Defense: High-reliability RF filters and capacitors for mission-critical systems.
• Industrial: Specialty components for industrial electrification and energy applications.

Continued investment in R&D, with projected spending of $85.6 million in 2023 to drive innovation

While the company's reported full-year 2023 Non-GAAP Research and Development (R&D) expenses were $69.3 million, the current investment trajectory for 2025 shows a more efficient, concentrated spend following the divestiture of the Consumer MEMS Microphones business. This is a crucial detail: less total spend, but higher impact per dollar on the core segments.

Here's the quick math on the near-term R&D investment for the continuing operations. In the first half of 2025, Non-GAAP R&D spending was approximately $17.2 million (Q1 2025 at $8.2 million plus Q2 2025 at approximately $9.0 million). This targeted investment is driving the development of next-generation components, such as high-performance inductors launched in July 2025, which expand their total addressable market.

R&D Investment Snapshot (Non-GAAP, Continuing Operations)	Amount (in millions)
Full Year 2023 (Reported)	$69.3
Q1 2025 (Reported)	$8.2
Q2 2025 (Approximate)	$9.0
H1 2025 Total (Q1 + Q2)	$17.2

Leveraging balanced armature (BA) drivers for premium audio in True Wireless Stereo (TWS) and audiophile products

The Balanced Armature (BA) driver technology remains a key differentiator for Knowles in the MedTech & Specialty Audio segment, especially in the booming premium audio market. BA drivers, which are tiny, highly efficient speakers, are essential for high-fidelity sound in small form factors like hearing aids and premium True Wireless Stereo (TWS) earbuds.

The global TWS earbuds market is a massive opportunity, projected to reach $121.91 billion in 2025, growing at a Compound Annual Growth Rate (CAGR) of 36.1%. Knowles is actively capitalizing on this, as demonstrated by the September 2025 announcement that Baseus selected their BA drivers for the Baseus Inspire XC1 open-ear clip wireless earbuds. This integration into a new open-ear design shows their technology is defintely pushing into new product categories.

Emerging market for AI-driven acoustic sensing, projected to reach $4.2 billion by 2025

The convergence of acoustic technology and Artificial Intelligence (AI) presents a significant technological opportunity. While the precise figure of $4.2 billion is a specific market estimate, the broader global AI sensor market, which includes acoustic applications, was valued at $4.45 billion in 2024 and is projected to grow to approximately $6.51 billion in 2025, with a staggering CAGR of 46.3% through 2030. This is a high-growth area.

Knowles is already positioned in this space through its partnership with Syntiant Corp., focusing on integrating AI into defense applications. This allows for on-device processing of acoustic data (edge computing), which is vital for real-time anomaly detection and low-power operation in Defense and Industrial Internet of Things (IIoT) applications. The technology moves beyond simple sound capture to intelligent, context-aware environmental perception.

Knowles Corporation (KN) - PESTLE Analysis: Legal factors

Strict adherence to global anti-corruption laws, including the U.S. Foreign Corrupt Practices Act (FCPA)

Knowles Corporation operates across multiple international jurisdictions, making strict adherence to anti-corruption laws non-negotiable. This means maintaining a rigorous compliance program that specifically addresses the U.S. Foreign Corrupt Practices Act (FCPA), which prohibits bribing foreign government officials, and other global anti-bribery regulations.

The company's Code of Business Conduct and Ethics is the foundation for this, and it applies to all employees and directors worldwide. To be fair, managing this risk is a constant, expensive process, especially with global revenue reaching $132 million in the first quarter of 2025. The cost of a compliance failure-fines, reputational damage, and loss of government contracts-is far greater than the investment in prevention.

Here's the quick math on the risk exposure in a global operation:

• FCPA fines can reach hundreds of millions of dollars.
• The company's global footprint requires local law compliance in every country of operation.
• The Code of Conduct explicitly prohibits improper payments to secure business.

Maintenance of a formal Supplier Code of Conduct to ensure ethical sourcing and labor practices

The supply chain for a specialty electronic components manufacturer like Knowles is complex, spanning various countries and requiring constant oversight to mitigate ethical and legal risks. The company maintains a formal Supplier Code of Conduct, which is an extension of its internal Code of Business Conduct and Ethics, to ensure ethical sourcing and labor practices across its vendor base.

This code is crucial for managing environmental, social, and governance (ESG) risk, particularly concerning forced labor and human rights. Honest compliance means suppliers must meet stringent standards in areas like working hours, wages, and child labor. This isn't just a feel-good measure; it's a legal necessity to avoid import restrictions and consumer boycotts that can directly impact operations and the bottom line.

Key areas of compliance covered by the Supplier Code include:

• Prohibition of forced, bonded, or involuntary prison labor.
• Compliance with all local wage and hour laws, including minimum wages.
• Respect for workers' rights to associate freely and organize.
• Maintenance of a workplace free of discrimination and harassment.

Ongoing management of intellectual property, including 2 active patent infringement cases as of early 2025

Intellectual property (IP) is the lifeblood of a technology company like Knowles, whose patents on advanced medtech microphones and balanced armature speakers are a core competitive advantage. Managing IP is a high-stakes legal factor. As of early 2025, the company is actively managing 2 patent infringement cases, which is a defintely material risk. The outcome of such cases can result in substantial damages or injunctions that halt product sales.

To put the financial risk into perspective, patent infringement damages across the industry reached approximately $1.91 billion in the first half of 2025 alone, demonstrating the severe financial exposure in this space. Knowles' IP portfolio is protected by patents with expiration dates ranging from 2025 through 2044, showing a long-term commitment to innovation defense.

Here is a snapshot of the IP landscape and risk:

IP Activity	2025 Status	Financial Impact Risk
Active Patent Infringement Cases	2 (as of early 2025)	Potential for nine-figure damage awards or injunctions.
Patent Expiration Range (U.S.)	2025 through 2044	Requires continuous R&D investment to replace expiring IP.
Industry Damage Verdicts (H1 2025)	$1.91 billion total awarded	Illustrates the high cost of losing an infringement case.

Increased regulatory scrutiny on data privacy and security, especially in the MedTech sector

The MedTech segment of Knowles, which includes advanced microphones and components for hearing health, is facing rapidly increasing regulatory scrutiny on data privacy and cybersecurity. The legal landscape is shifting fast in 2025, driven by new state-level comprehensive privacy laws and federal focus on health data.

Specifically, new comprehensive privacy laws in states like Minnesota and Tennessee are scheduled to take effect in July 2025, adding to the compliance complexity. Plus, the Department of Justice (DOJ) is expected to finalize a rule regulating the transfer of bulk sensitive U.S. personal data to foreign countries of concern, which is a direct legal threat to global supply chains and data management practices.

The heightened scrutiny focuses on several critical areas:

• HIPAA-like Compliance: Even if not a direct covered entity, vendors dealing with health data must adhere to stringent security standards.
• Cybersecurity for Medical Devices: The FDA is pushing for greater security requirements for software as a medical device (SaMD) and connected devices.
• State-Level Patchwork: The number of comprehensive state privacy laws will grow to 16 by the end of 2025, complicating a unified compliance strategy.

Knowles Corporation (KN) - PESTLE Analysis: Environmental factors

The environmental factors for Knowles Corporation are primarily driven by global regulatory shifts on electronic waste and the company's own ambitious, long-term decarbonization targets. The key takeaway for 2025 is that compliance costs for e-waste are rising, but the commitment to a carbon-neutral future presents a clear, competitive advantage in securing long-term contracts with environmentally-conscious customers.

Commitment to sustainability outlined in the 2025 Corporate Sustainability Report.

The Knowles 2025 Corporate Sustainability Report solidifies the company's long-term environmental vision, moving past simple compliance toward aggressive reduction targets. This commitment is framed by two major, quantifiable goals that directly impact capital expenditure and operational strategy.

• Achieve carbon neutrality by 2040.
• Target a 25% reduction in Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 2030, using 2022 as the baseline year.

To be fair, setting long-term goals is easy; executing is the hard part. The company is defintely focused on reducing its operational footprint, particularly at its global manufacturing sites in Asia, where most of its energy is consumed. This focus is a necessary response to investor and customer pressure for verifiable environmental, social, and governance (ESG) performance.

Operational policies focus on energy conservation, like using low-energy light bulbs in facilities.

Knowles Corporation implements a number of plain-English, facility-level policies designed to conserve resources and reduce its environmental impact. These policies are foundational to meeting the larger GHG reduction targets, focusing on efficiency, material use, and waste diversion.

Specific operational policies include:

• Conserve energy by using low-energy light bulbs throughout facilities.
• Ensure computers and equipment are shut down after work hours.
• Recycle or donate obsolete equipment, such as computers and printers.
• Avoid unnecessary travel by using video and audio conferencing.
• Utilize low-flow toilets and sinks to help reduce water consumption at facilities.

While the latest specific 2024/2025 fiscal year data is not publicly detailed, the company uses its 2020 performance as a baseline for measuring progress toward its 2030 goal. Here's the quick math on the scale of their operation:

Environmental Metric (2020 Baseline)	Amount	Notes
Total Energy Consumption	123,000 MWh	Covers largest buildings and manufacturing sites.
Total Water Consumption	1.1 million m3	Approximately 290 million gallons.
Total GHG Emissions (CO2e)	86,000 metric tons	Includes Scope 1 (direct) and Scope 2 (indirect) emissions.

Industry-wide pressure from stringent environmental regulations on e-waste and emissions.

The electronics and semiconductor industry faces increasing regulatory pressure, which is a near-term risk. The most critical change for 2025 is the tightening of global e-waste rules. Specifically, as of January 1, 2025, the Basel Convention now controls international shipments of both hazardous and non-hazardous electrical and electronic waste (e-waste) and scrap. This means transboundary movements of e-waste now require the prior informed consent of the importing country, which complicates the supply chain for recycling and disposal of manufacturing byproducts and end-of-life products.

This regulatory shift will increase the administrative and logistical costs for Knowles Corporation's global operations, particularly in Asia, where much of its manufacturing and material processing occurs. It forces a more rigorous and costly approach to reverse logistics (getting the e-waste back) and disposal.

Compliance with global environmental regulations is a core part of the Environmental, Health and Safety Policy.

Compliance is not optional; it's a core business function. Knowles Corporation's Environmental, Health and Safety (EHS) Policy requires compliance with all applicable EHS laws and legislation worldwide. This is a crucial factor for a global manufacturer, as it must navigate a patchwork of regional rules like the European Union's Restriction of Hazardous Substances (RoHS) and Waste Electrical and Electronic Equipment (WEEE) directives.

The company maintains its EHS Management Systems based on two key international standards, which provides a verifiable, external audit of its commitment:

• ISO 14001: The international standard for environmental management systems.
• ISO 45001: The international standard for occupational health and safety management systems.

This ISO alignment helps manage the risk of non-compliance fines and supply chain disruption, plus it signals to customers that the company's products meet high global environmental standards. The company's policy is to continually improve the effectiveness of these systems, so they don't just stand still.