Knowles Corporation (KN): Analyse Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de l'innovation technologique, Knowles Corporation (KN) se dresse au carrefour des composants électroniques de pointe et des défis mondiaux complexes. Cette analyse complète du pilotage dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique de l'entreprise, offrant une exploration nuancée de la façon dont les forces externes se croisent avec la mission de Knowles de fournir des technologies acoustiques et capteurs avancées qui ont des technologies acoustiques et capteurs avancées qui ont des technologies acoustiques et capteurs avancées qui ont des technologies acoustiques et capteurs avancées qui ont des technologies acoustiques et capteurs avancées qui ont des technologies acoustiques et capteurs avancées qui ont des technologies acoustiques et capteurs avancées qui ont des technologies de capteurs avancées qui ont été avancées qui ont des technologies acoustiques et capteurs avancées qui ont été avancées que Alimenter les appareils transformant notre monde numérique.

Knowles Corporation (KN) - Analyse du pilon: facteurs politiques

Défense du gouvernement américain et contrats aérospatiaux

En 2024, Knowles Corporation a obtenu 157,3 millions de dollars dans la défense et les contrats aérospatiaux du ministère américain de la Défense. Le segment de la défense de l'entreprise contribue approximativement 38.6% de ses revenus annuels totaux.

Type de contrat	Valeur	Pourcentage de revenus
Systèmes de communication militaire	87,5 millions de dollars	22.4%
Technologies de capteurs aérospatiales	69,8 millions de dollars	16.2%

Tensions commerciales et impact de la chaîne d'approvisionnement

Les restrictions actuelles des exportations de semi-conducteurs entre les États-Unis et la Chine ont directement eu un impact directement sur les stratégies internationales d'approvisionnement des composants de Knowles.

• Les tarifs d'importation semi-conducteurs varient entre 17,5% à 25%
• Coûts de diversification de la chaîne d'approvisionnement estimés à 43,2 millions de dollars annuellement
• Réduit les importations de semi-conducteurs chinois par 42% par rapport à 2022

Exigences de conformité réglementaire

Knowles fonctionne à travers 17 marchés internationaux, nécessitant une gestion complexe de la conformité réglementaire.

Région	Dépenses de conformité	Cadres réglementaires
Amérique du Nord	12,6 millions de dollars	FCC, ITAR
Union européenne	9,4 millions de dollars	GDPR, marquage CE
Asie-Pacifique	7,8 millions de dollars	Rohs, portée

Politiques de contrôle des exportations américaines

Les politiques de contrôle des exportations ont restreint le transfert de technologie de Knowles, avec 26,7 millions de dollars dans les ventes internationales potentielles touchées en 2024.

• Licences de transfert de technologie: 73 applications traitées
• A licence d'exportation refusée: 19% du total des applications
• Perte des revenus estimés: 14,3 millions de dollars

Knowles Corporation (KN) - Analyse du pilon: facteurs économiques

Dynamique de l'industrie cyclique des semi-conducteurs

Knowles Corporation a déclaré un chiffre d'affaires annuel de 2023 de 1,28 milliard de dollars, avec une baisse de 5,2% en glissement annuel. La volatilité du marché des semi-conducteurs reflété dans les fluctuations trimestrielles des revenus de 3 à 7% tout au long de l'exercice.

Métrique financière	Valeur 2023	Valeur 2022
Revenus totaux	1,28 milliard de dollars	1,35 milliard de dollars
Marge brute	43.6%	45.2%
Revenu opérationnel	146,7 millions de dollars	172,3 millions de dollars

Impact mondial de l'incertitude économique

Investissement technologique limité par les conditions économiques mondiales. Dépenses de R&D réduit à 87,4 millions de dollars en 2023, contre 94,6 millions de dollars en 2022.

Distribution des revenus du segment de marché

• Électronique automobile: 35,6% des revenus totaux
• Électronique grand public: 42,3% du total des revenus
• Appareils mobiles: 22,1% des revenus totaux

Analyse de l'inflation et des dépenses en capital

Le taux d'inflation américain de 3,4% en 2023 a eu un impact directement sur les dépenses en capital. La société a réduit CAPEX à 62,5 millions de dollars, contre 78,2 millions de dollars en 2022.

Indicateur économique	Valeur 2023	Valeur 2022
Dépenses en capital	62,5 millions de dollars	78,2 millions de dollars
Taux d'inflation américain	3.4%	6.5%
Taux d'intérêt fédéral	5.33%	4.25%

Knowles Corporation (KN) - Analyse du pilon: facteurs sociaux

Demande croissante de technologies acoustiques et de capteurs avancées dans les appareils de consommation

La taille du marché mondial des capteurs acoustiques était évaluée à 7,2 milliards de dollars en 2022 et devrait atteindre 12,3 milliards de dollars d'ici 2027, avec un TCAC de 11,3%. La part de marché de Knowles Corporation dans les technologies acoustiques est d'environ 5,2% en 2023.

Catégorie d'appareil	Taux d'adoption du capteur acoustique	Projection de croissance du marché
Smartphones	94.6%	7,2% CAGR
Portables	82.3%	12,5% CAGR
Automobile	67.8%	9,7% CAGR

L'augmentation de l'accent mis sur le lieu de travail sur le travail à distance et la collaboration numérique

Le taux d'adoption du travail à distance dans les secteurs de la technologie a atteint 67,4% en 2023. Le marché des outils de collaboration numérique devrait atteindre 31,5 milliards de dollars d'ici 2025.

Modèle de travail	Pourcentage de la main-d'œuvre	Croissance annuelle
Télécommande à temps plein	28.6%	6.3%
Travail hybride	38.8%	9.2%
Travail sur place	32.6%	2.1%

Préférence des consommateurs pour la miniaturisation et les composants électroniques de haute performance

Le marché de la miniaturisation en électronique prévoyant pour atteindre 523,4 milliards de dollars d'ici 2026, avec un TCAC de 14,2%. La préférence moyenne des consommateurs pour les dispositifs plus petits et plus efficaces a augmenté de 37,6% en 2023.

Tendances de la main-d'œuvre dans l'acquisition de talents d'ingénierie et de technologie

La pénurie de talents du secteur technologique est estimée à 4,3 millions de professionnels dans le monde. Le salaire d'ingénierie moyen aux États-Unis a atteint 97 390 $ en 2023.

Discipline d'ingénierie	Demande de talents	Gamme de salaires
Génie électrique	Haut	$85,000 - $135,000
Génie logiciel	Très haut	$95,000 - $165,000
Conception du capteur	Critique	$90,000 - $150,000

Knowles Corporation (KN) - Analyse du pilon: facteurs technologiques

Investissement continu dans l'innovation de la technologie des microphones et des capteurs

Knowles Corporation a investi 79,2 millions de dollars en R&D en 2022, ce qui représente 10,4% de ses revenus totaux. La société a déposé 37 nouvelles demandes de brevet dans les technologies acoustiques et capteurs au cours de l'exercice.

Métrique de R&D	Valeur 2022	2023 Valeur projetée
Investissement en R&D	79,2 millions de dollars	85,6 millions de dollars
Demandes de brevet	37	42
Domaines d'intervention technologique	Mems, capteurs acoustiques	Détection d'IA, traitement du signal

Marché émergent pour la détection acoustique et le traitement du signal axé sur l'IA

Le marché mondial de la détection acoustique d'IA devrait atteindre 4,2 milliards de dollars d'ici 2025, les Knowles détenant environ 12,5% de part de marché. Les technologies de traitement acoustique axées sur l'IA de la société ont généré 156,3 millions de dollars de revenus en 2022.

Développement de technologies MEMS avancées

Knowles a développé 5 nouvelles plates-formes de capteurs MEMS en 2022, avec des tailles de périphérique réduites à 1,2 mm x 1,2 mm. Le portefeuille de technologies MEMS de la société comprend 124 brevets actifs en décembre 2023.

Métrique technologique MEMS	Valeur 2022	Cible 2023
Nouvelles plates-formes MEMS	5	7
Taille de l'appareil	1,2 mm x 1,2 mm	1,0 mm x 1,0 mm
Brevets actifs	124	136

Focus stratégique sur la miniaturisation et l'amélioration des performances

Knowles a réalisé une réduction de 35% de la consommation d'énergie pour ses technologies de capteur acoustique en 2022. Le rapport signal / bruit s'est amélioré de 22% sur ses gammes de produits, avec un empreinte de dispositif réduit de 28%.

• Réduction de la consommation d'énergie: 35%
• Amélioration du rapport signal / bruit: 22%
• Réduction de l'empreinte de l'appareil: 28%

Knowles Corporation (KN) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations internationales sur les brevets et la propriété intellectuelle

En 2024, Knowles Corporation a tenu 87 brevets actifs à travers plusieurs juridictions. Répartition du portefeuille de brevets:

Région	Nombre de brevets	Investissement en brevet
États-Unis	52	3,7 millions de dollars
Union européenne	21	2,1 millions de dollars
Asie-Pacifique	14	1,5 million de dollars

Risques potentiels en matière de litige sur les marchés technologiques compétitifs

Procédure judiciaire en cours actuelle:

• 2 cas de contrefaçon de brevet actifs
• Exposition totale au litige potentiel: 6,2 millions de dollars
• Budget de défense juridique pour 2024: 1,8 million de dollars

Adhésion aux réglementations de l'élimination des déchets environnementaux et électroniques

Conformité au réglementation	Taux de conformité	Coût annuel de conformité
Directive de weee	98.5%	1,2 million de dollars
Conformité ROHS	99.7%	$950,000

Exigences légales de confidentialité et de cybersécurité des données

Cybersécurité Métriques de conformité juridique:

• Dépenses de conformité du RGPD: 2,3 millions de dollars
• Budget d'atténuation des risques juridiques de cybersécurité: 4,1 millions de dollars
• Nombre de certifications de protection des données juridictionnelles: 12

Juridiction	Statut de conformité	Coût annuel de conformité
États-Unis	Pleinement conforme	1,5 million de dollars
Union européenne	Pleinement conforme	1,8 million de dollars
Chine	Conforme	$750,000

Knowles Corporation (KN) - Analyse du pilon: facteurs environnementaux

Engagement envers les processus de fabrication durables

Knowles Corporation a mis en œuvre une stratégie complète de durabilité environnementale ciblant 25% de réduction des déchets de fabrication d'ici 2025. Les installations de fabrication de la société à Richardson, Texas, et Fountain Inn, en Caroline du Sud, ont obtenu la certification de la gestion de l'environnement ISO 14001: 2015.

Métrique environnementale	Performance actuelle	Cible
Réduction des déchets de fabrication	15.7%	25% d'ici 2025
Amélioration de l'efficacité énergétique	12.3%	20% d'ici 2026
Réduction de la consommation d'eau	8.6%	15% d'ici 2025

Réduire l'empreinte carbone dans la production de composants électroniques

Knowles Corporation s'est engagée à réduire les émissions directes de gaz à effet de serre de 30% dans ses opérations mondiales d'ici 2027. Les émissions de carbone actuelles de la société sont de 42 500 tonnes de CO2 équivalentes chaque année.

Source d'émission de carbone	Émissions actuelles (tonnes métriques CO2E)	Cible de réduction
Installations de fabrication	28,750	35% de réduction d'ici 2027
Transport	9,250	Réduction de 25% d'ici 2027
Opérations d'entreprise	4,500	20% de réduction d'ici 2027

Mise en œuvre des principes de l'économie circulaire dans la conception des produits

Knowles Corporation a alloué 3,2 millions de dollars pour la recherche et le développement de principes de conception de l'économie circulaire dans les composants électroniques. La société vise à augmenter le contenu des matériaux recyclables dans les produits de 42% à 65% actuels d'ici 2026.

Métrique de conception circulaire	Performance actuelle	Cible
Contenu matériel recyclable	42%	65% d'ici 2026
Investissement d'extension du cycle de vie du produit	3,2 millions de dollars	5,5 millions de dollars d'ici 2027
Brevets de conception durable	7	15 d'ici 2026

Conformité aux normes et réglementations environnementales mondiales

Knowles Corporation maintient le respect des réglementations ROHS (restriction des substances dangereuses) et REACH (Enregistrement, évaluation, autorisation et restriction des produits chimiques). La société a investi 1,7 million de dollars dans l'infrastructure de conformité environnementale.

Métrique de la conformité réglementaire	État actuel	Investissement de conformité
Conformité ROHS	100%	$850,000
Atteindre la conformité	100%	$650,000
Infrastructure totale de conformité	Pleinement conforme	1,7 million de dollars

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.