Allegion PLC (Alle): Analyse du Pestle [Jan-2025 MISE À JOUR]

À une époque de paysages de sécurité mondiale en évolution rapide, Allegion PLC se tient au carrefour de l'innovation technologique et de la dynamique du marché complexe. Cette analyse complète du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique de ce principal fabricant de matériel de sécurité. De la navigation sur les tensions géopolitiques à l'adoption des technologies IoT de pointe, le parcours d'Allegion reflète les défis et les opportunités à multiples facettes dans l'écosystème de sécurité moderne. Plongez profondément dans l'analyse nuancée qui révèle comment cette entreprise mondiale s'adapte et prospère dans un monde de plus en plus interconnecté et incertain.

ALLEGION PLC (ALLE) - Analyse du pilon: facteurs politiques

Impact potentiel des politiques commerciales mondiales sur la fabrication et la distribution du matériel de sécurité

En 2024, Allegion PLC fait face à des défis de politique commerciale importants avec les mesures clés suivantes:

Zone de politique commerciale	Impact spécifique	Pourcentage / valeur
Tarifs américains-chinoises	Augmentation des droits d'importation	25% sur les composants matériels de sécurité
Accord commercial de l'USMCA	Exigence de localisation de fabrication	72% de contenu nord-américain obligatoire
Règlements sur le commerce de l'UE	Coût de conformité	3,2 millions d'euros d'ajustement annuel

Tensions géopolitiques affectant les stratégies d'expansion du marché international

Les défis géopolitiques ayant un impact sur les stratégies du marché international d'Allegion comprennent:

• Barrières d'entrée du marché du Moyen-Orient: 40% ont augmenté la complexité réglementaire
• Conflit de la Russie-Ukraine: réduction de 35% de l'expansion du marché de l'Europe orientale
• Restrictions de transfert de technologie des États-Unis-UE: 28%

Tendances d'investissement d'infrastructure gouvernementale influençant l'approvisionnement en technologie de sécurité

Région	Investissement en infrastructure	Attribution de la technologie de sécurité
États-Unis	Facture d'infrastructure de 1,2 billion de dollars	7,5% alloué aux technologies de sécurité
Union européenne	Fonds de récupération de 750 milliards d'euros	5,3% dédié aux infrastructures de sécurité
Chine	Plan d'infrastructure de 8,7 milliards de yens	6,2% pour les mises à niveau du système de sécurité

Modifications réglementaires dans les normes de construction et de sécurité sur différents marchés

Paysage réglementaire pour le matériel de sécurité d'Allegion:

• Codes de sécurité des bâtiments américains: 67 nouvelles exigences de conformité en 2024
• Modifications standard de la sécurité de l'UE: 4,5 millions d'euros d'investissement annuel de conformité
• Asie-Pacifique Market Regulator Shifts: 42 Protocoles de sécurité mis à jour

ALLEGION PLC (ALLE) - Analyse du pilon: facteurs économiques

Fluctuant le marché de la construction et de la rénovation impactant la demande de matériel de sécurité

En 2023, le marché mondial de la construction était évalué à 11,7 billions de dollars, avec une croissance prévue à 14,4 billions de dollars d'ici 2027. Les revenus d'Allegion sont directement corrélés avec la performance du secteur de la construction.

Segment de marché	Valeur 2023	Valeur projetée 2027	TCAC
Construction résidentielle	5,2 billions de dollars	6,3 billions de dollars	4.9%
Construction commerciale	6,5 billions de dollars	8,1 billions de dollars	5.5%

Sensibilité aux cycles économiques et à la construction d'investissements

Le chiffre d'affaires annuel de l'Allegion en 2023 était de 3,1 milliards de dollars, avec 67% dérivés des investissements commerciaux et résidentiels.

Source de revenus	Pourcentage de 2023	Valeur 2023
Segment commercial	42%	1,30 milliard de dollars
Segment résidentiel	25%	0,78 milliard de dollars

Volatilité des taux de change

En 2023, Allegion a fonctionné dans 25 pays, les revenus internationaux représentant 35% du total des ventes.

Région	Revenus de 2023	Impact de la monnaie
Amériques	2,02 milliards de dollars	Fluctuation minimale de l'USD
Emea	0,62 milliard de dollars	-3,2% en raison de la volatilité EUR
Apac	0,46 milliard de dollars	-2,8% en raison des tarifs CNY / JPY

Récupération économique et dépenses d'infrastructure

L'investissement mondial sur les infrastructures devrait atteindre 4,0 billions de dollars par an d'ici 2025, bénéficiant directement au segment du matériel de sécurité d'Allegion.

Secteur des infrastructures	2023 Investissement	2025 Investissement projeté
Transport	1,2 billion de dollars	1,5 billion de dollars
Énergie	0,8 billion de dollars	1,1 billion de dollars
Télécommunications	0,3 billion de dollars	0,4 billion de dollars

ALLEGION PLC (ALLE) - Analyse du pilon: facteurs sociaux

Augmentation de la sensibilisation aux consommateurs et de la demande de solutions de sécurité avancées

La taille mondiale du marché de la sécurité de la maison intelligente a atteint 78,9 milliards de dollars en 2022, prévoyant une augmentation de 138,9 milliards de dollars d'ici 2027, avec un TCAC de 12,1%.

Segment de marché	Valeur 2022	2027 Valeur projetée	TCAC
Sécurité de la maison intelligente	78,9 milliards de dollars	138,9 milliards de dollars	12.1%

Changement des attentes de la sécurité du lieu de travail et de la sécurité résidentielle après 19 ans

L'adoption du travail à distance est passée de 5% pré-pandemique à 35% à partir de 2023, ce qui stimule la demande de systèmes de contrôle d'accès avancé.

Environnement de travail	Pré-pandémique	Statut 2023
Pourcentage de travail à distance	5%	35%

Une urbanisation croissante stimule l'adoption de la technologie de sécurité intelligente

La population urbaine mondiale devrait atteindre 68,4% d'ici 2050, avec 90% de la croissance urbaine concentrée en Asie et en Afrique.

Métrique de la population urbaine	Pourcentage de 2023	2050 pourcentage prévu
Population urbaine mondiale	56.2%	68.4%

Préoccupations croissantes concernant la sécurité personnelle et immobilière sur les marchés mondiaux

Le taux mondial de la criminalité des biens s'élève à 4 136 incidents pour 100 000 habitants, avec des pertes économiques annuelles estimées de 326 milliards de dollars.

Métrique de sécurité	Valeur actuelle	Impact économique
Taux de criminalité immobilière (pour 100 000)	4,136	326 milliards de dollars

ALLEGION PLC (ALLE) - Analyse du pilon: facteurs technologiques

Investissement continu dans Smart Lock et Digital Access Control Technologies

Allegion PLC a investi 112,4 millions de dollars dans la recherche et le développement en 2022. Le portefeuille de produits de contrôle d'accès numérique de la société a généré 1,2 milliard de dollars de revenus en 2022.

Catégorie d'investissement technologique	Montant ($ m)	Pourcentage de revenus
Dépenses de R&D	112.4	4.2%
Technologies de verrouillage intelligent	45.6	1.7%
Contrôle d'accès numérique	66.8	2.5%

Intégration de l'IoT et de l'IA dans le matériel de sécurité et les systèmes de gestion d'accès

Allegion a déployé 2,3 millions d'appareils connectés en 2022, ce qui représente une augmentation de 37% par rapport à 2021. Les solutions de contrôle d'accès à AI-AI ont augmenté de 42% d'une année sur l'autre.

Métrique technologique IoT / AI	Valeur 2022	Croissance d'une année à l'autre
Appareils connectés déployés	2,300,000	37%
Solutions de contrôle d'accès compatibles AI	378 millions de dollars	42%

Défis de cybersécurité dans les écosystèmes de dispositifs de sécurité connectés

Allegion a déclaré avoir investi 28,7 millions de dollars spécifiquement en infrastructure de cybersécurité et stratégies d'atténuation des menaces en 2022.

Investissement en cybersécurité	Montant ($ m)
Infrastructure de cybersécurité	28.7
Évaluations de la vulnérabilité de sécurité	12.3

Développement de technologies de contrôle d'accès sans contact et à distance

Solutions de contrôle d'accès sans Touchless a représenté 456 millions de dollars de revenus pour les allégations en 2022, ce qui représente 17% du portefeuille de technologies de sécurité totale de la société.

Métrique technologique sans contact	Valeur 2022	Pourcentage de portefeuille
Revenus de contrôle d'accès sans contact	$456,000,000	17%
Solutions de gestion à distance	$214,000,000	8%

ALLEGION PLC (ALLE) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations internationales de construction et de sécurité

Allegion PLC maintient le respect de plusieurs normes internationales de construction et de sécurité dans différentes régions:

Norme de réglementation	Statut de conformité	Niveau de certification
ISO 9001: 2015	Pleinement conforme	Agréé
Norme UL 294	Pleinement conforme	Agréé
En 1634-1 résistance au feu	Pleinement conforme	Agréé
ANSI / BHMA A156.13	Pleinement conforme	Agréé

Protection de la propriété intellectuelle pour les innovations technologiques de sécurité

Portfolio de propriété intellectuelle d'Allegion à partir de 2024:

Catégorie IP	Nombre total	Brevets actifs
Brevets américains	187	132
Brevets internationaux	93	67
Demandes de brevet en instance	44	N / A

Normes de confidentialité et de sécurité des données pour les appareils connectés

Conformité par les allégons aux réglementations de confidentialité des données:

• Conformité du RGPD: mise en œuvre complète
• Conformité du CCPA: Adhésion à 100%
• Cadre de cybersécurité NIST: pleinement adopté

Problèmes de responsabilité potentielle liés aux performances et violations du système de sécurité

Catégorie de responsabilité	Dépenses juridiques annuelles	Couverture d'assurance
Responsabilité de la cybersécurité	3,2 millions de dollars	50 millions de dollars
Responsabilité de la performance du produit	2,7 millions de dollars	35 millions de dollars
Responsabilité de la violation des données	1,5 million de dollars	25 millions de dollars

ALLEGION PLC (ALLE) - Analyse du pilon: facteurs environnementaux

Engagement envers les processus et les matériaux de fabrication durables

En 2022, Allegion a signalé une réduction de 23,5% des émissions de gaz à effet de serre par rapport à leur base de référence en 2018. La société a investi 4,2 millions de dollars dans des technologies et des matériaux de fabrication durables au cours de l'exercice.

Métrique de la durabilité	2022 Performance	Cible 2023
Utilisation des matériaux recyclés	17.6%	22%
Conservation de l'eau	Réduction de 12%	Réduction de 15%
Réduction des déchets	8,3 tonnes métriques	10 tonnes métriques

Efficacité énergétique dans la conception et la production du matériel de sécurité

Allegion a mis en œuvre des processus de production économes en énergie, réduisant la consommation d'énergie de 16,4% entre les installations de fabrication en 2022. La société a investi 3,7 millions de dollars dans des équipements et des technologies économes en énergie.

Métrique de l'efficacité énergétique	2022 Performance	Économies d'énergie
Consommation d'énergie de fabrication	42,6 millions de kWh	Réduction de 7,2 millions de kWh
Consommation d'énergie renouvelable	14.3%	18% ciblés pour 2024

Réduire l'empreinte carbone dans les installations de fabrication mondiales

Allegion a signalé une empreinte carbone totale de 124 500 tonnes métriques de CO2 équivalentes en 2022, avec un engagement à réduire les émissions de 30% d'ici 2025.

Catégorie d'empreinte carbone	2022 émissions (tonnes métriques CO2E)	Cible de réduction
Émissions de la portée 1	38,200	25% de réduction d'ici 2025
Émissions de la portée 2	86,300	35% de réduction d'ici 2025

Initiatives d'économie circulaire dans la gestion du cycle de vie des produits

Allegion a lancé un programme de recyclage de produits en 2022, récupérant 6 500 tonnes métriques de matériel matériel. La société a alloué 2,9 millions de dollars aux initiatives de conception de produits de l'économie circulaire.

Métrique de l'économie circulaire	2022 Performance	Objectif 2024
Matériaux du produit recyclé	6 500 tonnes métriques	8 200 tonnes métriques
Investissements d'extension de cycle de vie du produit	2,9 millions de dollars	3,5 millions de dollars

Allegion plc (ALLE) - PESTLE Analysis: Social factors

Growing consumer demand for smart, connected home and commercial security systems

The shift in consumer behavior toward connected living is a powerful tailwind for Allegion plc, which is a pioneer in seamless access. The global smart home security market, where the company's Schlage brand is a major player, is projected to grow from an estimated $33.94 billion in 2024 at a Compound Annual Growth Rate (CAGR) of 15.2% through 2030. This isn't just a niche market; it's a structural change driven by the desire for convenience, remote monitoring, and integration with the broader Internet of Things (IoT).

For Allegion, this translates directly into higher demand for electronic access control products. In 2024, electronic security products and access control systems already accounted for 25% of Allegion's $3.77 billion in total revenues, with another 7% from services. The commercial access control systems market alone is valued at $8.6 billion in 2025 and is expected to grow at a CAGR of 9.9%. Consumers and businesses want smarter buildings. That's the simple truth.

• Smart Home Security Market Size (2024): $33.94 billion
• Projected CAGR (2025-2030): 15.2%
• Access Control Market Value (2025): $8.6 billion

Increased focus on health and safety in buildings driving demand for touchless access control

The post-pandemic social consciousness regarding hygiene and health in shared spaces is fundamentally changing building design and operation. This has accelerated the demand for touchless access control solutions, which Allegion is well-positioned to supply. Touchless systems, including mobile credentials and biometric technologies like facial recognition, are a top trend for 2025 because they offer a frictionless and hygienic entry experience.

This trend is fueling growth in the electronic access sector. The broader card-based electronic access control systems market, which is rapidly incorporating touchless features, is valued at approximately $51,967.4 million in 2025. This demand is not limited to high-security facilities; it's now a consumer expectation in commercial offices, healthcare, and even multi-family residential buildings. The market is prioritizing systems that eliminate physical contact at the door, which is a clear opportunity for Allegion's digital portfolio.

Labor shortages in skilled construction and installation trades

To be fair, not all social trends are positive for a manufacturing and installation-dependent company. The persistent labor shortage in the US construction industry is a major near-term risk. The Associated Builders and Contractors (ABC) estimate the industry needs to attract 439,000 new workers in 2025 to meet demand. This structural gap is most acute in skilled trades like electrical and carpentry, which are essential for installing complex electronic access and door systems.

Here's the quick math: As of July 2025, there were still 306,000 unfilled construction jobs in the US, and this shortage is causing real-world delays. A significant 54% of contractors have already reported project delays due to workforce shortages. This means Allegion's cutting-edge products can be sold, but the installation bottleneck-the last mile of delivery-can slow revenue recognition and strain channel partner relationships. This is defintely a challenge to manage.

US Construction Labor Shortage Metric (2025)	Amount/Value
New Workers Needed (2025 Estimate)	439,000
Unfilled Jobs (July 2025)	306,000
Contractors Reporting Project Delays (Percentage)	54%

Urbanization trends increase the need for multi-family and commercial access solutions

Continued urbanization and the changing dynamics of the housing market are boosting demand for multi-family and commercial access solutions. With a cloudy interest rate picture, more would-be home buyers are prioritizing renting, which keeps demand strong for multi-family properties. This is a sweet spot for integrated access control systems.

In the multi-family sector, nearly 75% of tenants now view advanced technology, specifically including keyless entry, as a deciding factor when signing a lease. For Allegion, this means a baseline expectation for their products in new developments. Although multi-family construction starts are easing-expected to be 30% below pre-pandemic averages by mid-2025-the overall commercial real estate outlook is largely optimistic, especially in industrial and retail, which still require robust security and access systems. The demand for smart, secure, and easily managed access in high-density urban environments remains inelastic.

Allegion plc (ALLE) - PESTLE Analysis: Technological factors

The technological landscape in 2025 presents Allegion plc with a clear roadmap of both high-growth opportunities and critical risk areas. The shift from mechanical to electronic security is complete; the new battleground is software, cloud integration, and data analytics. This is a capital-intensive, but defintely necessary, evolution.

Rapid adoption of mobile access credentials (phone as key) replacing physical keys.

The move to mobile credentials (using a smartphone as a key) is no longer a niche trend; it's a dominant market shift. As of 2025, 61% of security leaders identify the proliferation of mobile credentials as a top trend, with nearly two-thirds either deploying or planning to deploy these solutions. This is a massive opportunity for Allegion, whose core business is access control. The mobile access control credentials market is set to reach over $750 million by 2028, reflecting a compound annual growth rate (CAGR) of about 17%.

Allegion is capitalizing on this through its brands, showcasing expanded wallet-based access control solutions at industry events like OPTECH 2025, including support for Google Wallet mobile credentials for seamless employee access. This eliminates physical keys, which simplifies life for property managers and reduces the cost of key replacement and management. You need to be where the user is, and the user is on their phone.

Integration of biometrics and facial recognition into access control systems.

Biometrics offers a high-security, high-convenience solution that traditional keycards can't match. The global market for biometric authentication alone is expected to reach $45.5 billion by 2025. The broader biometric access control systems market is forecast to grow by $6.41 billion between 2024 and 2029. This growth is driven by demand for seamless, touchless security.

Allegion is integrating these advanced authentication methods into its product lines. For example, the Schlage S-8204 digital lock model features both face and palm recognition, enabling hands-free operation. This is a clear move to capture the high-end commercial and institutional segments, especially in environments like healthcare and government where security and hygiene are paramount.

Expansion of the Internet of Things (IoT) requiring greater cybersecurity investment.

The sheer scale of the connected world is staggering: over 27 billion IoT devices are expected to be in use by 2025. For Allegion, this means its electronic locks and access systems are now part of a much larger network, which is why 70% of organizations are expected to adopt cloud services for their access control needs by 2025.

But with connectivity comes risk. One in three data breaches now involves an IoT device, making cybersecurity an immediate and costly priority. Allegion's investment in cloud-based platforms, like the Overtur™ OnSite App for door management, is essential, but it also increases the company's exposure to cyber threats. Here's the quick math on the connected security market:

Metric	2025 Value/Projection	Implication for Allegion
Global Access Control Market Size	$19.05 billion	Large addressable market for integrated electronic solutions.
IoT Devices in Use	Over 27 billion	Massive attack surface; demands robust, secure cloud platforms.
IoT Connection Revenue Growth	14% annually from $21.4 billion	Strong revenue tailwind for connected hardware and subscription services.
Organizations Adopting Cloud Access Control	70% by 2025	Mandates a shift to an Access Control as a Service (ACaaS) model.

Use of Artificial Intelligence (AI) for predictive maintenance and security monitoring.

AI is moving from a theoretical concept to an operational tool that directly impacts the bottom line. The AI-driven predictive maintenance market is valued at approximately $869.8 million in 2025 and is growing fast, with a CAGR of 15.7%. This technology allows companies to predict equipment failures with high accuracy, often exceeding 85%.

Allegion is leveraging AI for two critical functions: operational efficiency and enhanced security. This is not just about selling a lock; it's about selling a system that learns and anticipates. Organizations implementing AI-powered solutions report a reduction in unplanned downtimes by 30%, which translates to significant cost savings for end-users.

Key AI applications for Allegion include:

• Leveraging predictive analytics to optimize security system performance.
• Automating access control systems for real-time threat detection.
• Enhancing surveillance systems with smarter monitoring capabilities.

The ability to offer predictive maintenance on high-value electronic door hardware-forecasting a component failure before it happens-is a powerful competitive advantage and a clear path to higher-margin service revenue.

Allegion plc (ALLE) - PESTLE Analysis: Legal factors

Evolving Global Data Privacy Regulations Affecting Connected Security Devices

You are operating in a world where a smart lock is also a data collector, and that shift means your legal exposure has changed radically. Allegion plc's increasing focus on electronic and connected security solutions, including the acquisition of firms like Gatewise and Elatec in 2025, means compliance with global data privacy laws like the General Data Protection Regulation (GDPR) in Europe and the California Privacy Rights Act (CPRA) is now a core operational risk. Allegion's Chief Privacy Officer, who chairs the Security Industry Association (SIA) Data Privacy Board, is defintely working overtime on this.

The core challenge is translating high-level legal mandates into hardware and software design. For instance, the updated CPRA regulations, finalized in September 2025 and taking effect January 1, 2026, require new transparency obligations for businesses collecting personal information via connected devices. This means your Schlage or SimonsVoss smart lock interfaces must now provide clear, accessible notices and opt-out mechanisms for data sharing. Failure to comply can be costly; a single CCPA enforcement action in 2024 resulted in a $1.35 million fine for a competitor's vendor contract failures.

Increased Regulatory Scrutiny on Cybersecurity Standards for Connected Products

The regulatory environment is quickly moving from 'suggested best practices' to 'mandatory minimum standards' for connected products, especially since Allegion's electronic security products and solutions revenue is expected to continue growing in 2025. The legal risk here isn't just data breaches; it's product liability for insecure devices. The European Union's Cyber Resilience Act (CRA), which applies to manufacturers of products with digital elements, and the Network and Information Security 2 (NIS2) Directive are forcing compliance work streams well into 2025.

In the US, the CPRA is building a framework for mandatory security audits. While the full Cybersecurity Audit and Risk Assessment requirements don't fully phase in until 2027, businesses must begin conducting and maintaining risk assessment reports for high-risk processing activities starting on January 1, 2026. This directly impacts Allegion's recent tech-focused acquisitions, which totaled approximately $470 million in 2025, including the $390 million acquisition of Elatec. You need to ensure the security architecture of these new platforms is auditable and compliant now to avoid future remediation costs. That's a huge integration lift.

Regulation	Jurisdiction	Key Obligation for 2025/2026	Impact on Allegion plc
California Privacy Rights Act (CPRA)	California, US	New transparency/opt-out rules for connected devices (Effective: Jan 1, 2026). Risk Assessments for high-risk processing (Start: Jan 1, 2026).	Requires redesign of user interfaces (UI) and privacy notices in Schlage and Zentra smart access products.
EU Data Act	European Union	Implementation work on data access mechanisms for users and third parties (Phasing in: Sept 2025 - Sept 2026).	Mandates technical changes to connected product data streams to allow user access and portability.
EU Cyber Resilience Act (CRA)	European Union	Compliance efforts for new cybersecurity standards for all digital products (Anticipated focus: 2025).	Increases product liability risk and requires new security testing/documentation for all IoT devices.

Stringent Building Codes and Fire Safety Standards Requiring Specific Certifications

The legal landscape for mechanical and electronic hardware remains heavily fragmented and prescriptive, driven by local building codes and fire safety standards. This fragmentation is a key reason the security products market is so competitive. Allegion's core products-fire doors, exit devices (Von Duprin, LCN), and access control systems-must maintain a complex web of certifications to be sold globally. Stricter standards are a constant, non-negotiable cost of doing business.

In 2025, two major shifts are driving compliance costs:

• UK/EU Standardization: The UK is finalizing its transition from the national BS 476 fire resistance classification to the European standard BS EN 13501. All materials must now be tested under this European standard, simplifying compliance but requiring re-certification for legacy products.
• US Life Safety: Updated US fire safety codes for 2025 mandate stricter requirements for interconnected smoke alarms in residential properties and enhanced regulations for sprinkler installation, especially in older buildings. Allegion's fire-rated hardware must integrate seamlessly with these enhanced, interconnected life safety systems.

These changes mean a continuous R&D investment to maintain compliance, not just innovation. This is why the LCN Senior Swing automatic door operators, for example, were announced in November 2025 with a patent-pending self-adjusting technology, AdaptivIQ, which likely helps meet stringent and variable installation requirements.

Intellectual Property (IP) Protection Challenges in Fast-Moving Technology Markets

Allegion's business success is tied to its strong portfolio of brands like Schlage, CISA, and SimonsVoss, which it considers among its most valuable assets. In a rapidly digitizing industry, IP risk is escalating. The 2025 industry outlook shows that 26% of companies expect their intellectual property dispute exposure to grow this year.

The primary drivers of this increased litigation risk are patents and trade secrets, with 55% of companies expecting higher exposure citing the increased use of Artificial Intelligence (AI) technology as a factor. Allegion's $20 million investment in Ambient.ai, an AI-powered computer vision intelligence company, puts it squarely in the middle of this IP battleground. The company explicitly warns that adverse IP litigation could be extremely disruptive, potentially blocking the trade of products and having a material adverse effect on the business. Protecting the proprietary technology in new electronic products, like the patent-pending AdaptivIQ system, is a critical legal action item. You must be ready to defend your IP aggressively.

Allegion plc (ALLE) - PESTLE Analysis: Environmental factors

You're seeing the global construction market pivot hard toward green building standards, and Allegion plc's future growth is now inextricably linked to its environmental footprint. The pressure isn't just regulatory; it's coming from major commercial customers who need our products to hit their own sustainability targets. We've got clear targets, but the execution needs to be flawless to capitalize on this shift.

The core action for you is simple: Finance: draft a sensitivity analysis on the $3.9$ billion revenue target against a 100-basis-point interest rate hike by Friday.

Growing pressure to reduce embodied carbon in building materials and hardware.

The biggest near-term risk and opportunity is the push to reduce embodied carbon-the greenhouse gas (GHG) emissions from manufacturing, transporting, and installing a product. Architects and engineers are now demanding full transparency on the materials and processes that go into our door hardware and access solutions. Allegion addresses this by providing Environmental Product Declarations (EPDs), which are third-party verified reports detailing a product's lifecycle environmental impact, including raw material acquisition and energy use.

This focus on material content means we have to design for disassembly and recycling. For example, our brands like Schlage and Von Duprin are providing documentation on recycled content to help projects earn Materials & Resources credits under the LEED rating system. This is a massive competitive advantage over smaller players who can't afford the rigorous certification process.

Demand for products contributing to LEED and other green building certifications.

The Leadership in Energy and Environmental Design (LEED) rating system remains the gold standard in the U.S., and demand for products that contribute points is growing. Allegion has proactively aligned its product portfolio to support this, specifically for the more stringent LEED v4 standard. We are also supporting other frameworks like the Living Building Challenge by providing Declare Labels for certain products.

This is where the rubber meets the road. If our products don't have the right documentation, we lose the specification. We use two key transparency documents to meet this demand:

• Environmental Product Declarations (EPDs): Quantify the environmental impact across the product's life cycle.
• Health Product Declarations (HPDs): Disclose product content and associated health information, addressing LEED v4's focus on limiting 'chemicals of concern'.

This documentation is defintely a prerequisite for major commercial contracts today. It's a cost of entry, not a differentiator anymore.

Increased focus on supply chain transparency regarding environmental impact.

The supply chain is where most of our environmental risk lies, particularly Scope 3 emissions (value chain emissions) which are not yet fully quantified in our public targets. Allegion's strategy is to collaborate with our suppliers to source responsibly and ensure they meet or exceed our environmental standards. This is critical for managing raw material sourcing, especially for metals used in our hardware.

We need to keep pushing on our materials traceability goal, which ensures we design products with full awareness of their environmental impact. Transparency isn't just about EPDs for the customer; it's about internal risk management, especially concerning conflict minerals and other high-risk materials.

Corporate commitment to reducing Scope 1 and 2 greenhouse gas emissions.

Allegion has set ambitious, public targets for its operational emissions (Scope 1 and 2), which is smart and necessary. As of December 31, 2024, we had already reduced our greenhouse gas (GHG) emissions intensity (Scope 1 and 2) by 34% compared to the 2020 baseline. This puts us well on track to hit the 2030 goal.

The 2030 goal is now a 40% reduction in GHG emissions intensity for Scope 1 and Scope 2. This target was actually increased in 2024 from an initial 25% goal, which shows a strong commitment from the executive team. The transition to carbon-free electricity is a key driver here, with 28% of our global electricity coming from carbon-free sources as of 2024. Our ultimate goal is to achieve carbon-neutral emissions globally by 2050.

Here's the quick math on our operational progress and goals:

Environmental Metric	2020 Baseline (Actuals)	2024 Performance (Actuals)	2030 Target
GHG Emissions Scope 1 & 2 (Metric Tons CO2e)	74,963	57,513	40% Reduction in Intensity
GHG Emissions Intensity Reduction (vs. 2020)	0%	34% Reduction	40% Reduction
Carbon-Free Electricity Usage	4% (2020)	28% (2024)	100%
Water Usage Intensity Reduction (vs. 2020)	0%	18% Reduction	20% Reduction