Knowles Corporation (KN): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico da inovação tecnológica, a Knowles Corporation (KN) fica na encruzilhada de componentes eletrônicos de ponta e desafios globais complexos. Essa análise abrangente de pilotes revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a trajetória estratégica da empresa, oferecendo uma exploração diferenciada de como as forças externas se cruzam com a missão de Knowles de fornecer tecnologias acústicas e sensores avançadas que Powe os dispositivos que transformam nosso mundo digital.

Knowles Corporation (KN) - Análise de Pestle: Fatores Políticos

Contratos de defesa do governo dos EUA e aeroespacial

A partir de 2024, a Knowles Corporation garantiu US $ 157,3 milhões em contratos de defesa e aeroespacial do Departamento de Defesa dos EUA. O segmento de defesa da empresa contribui aproximadamente 38.6% de sua receita anual total.

Tipo de contrato	Valor	Porcentagem de receita
Sistemas de comunicação militar	US $ 87,5 milhões	22.4%
Tecnologias de sensores aeroespaciais	US $ 69,8 milhões	16.2%

Tensões comerciais e impacto na cadeia de suprimentos

As restrições atuais de exportação de semicondutores entre os Estados Unidos e a China impactaram diretamente as estratégias de compras de componentes internacionais da Knowles.

• As tarifas de importação de semicondutores variam entre 17,5% a 25%
• Custos de diversificação da cadeia de suprimentos estimados em US $ 43,2 milhões anualmente
• Importações de semicondutores chineses reduzidos por 42% comparado a 2022

Requisitos de conformidade regulatória

Knowles opera 17 mercados internacionais, exigindo gerenciamento complexo de conformidade regulatória.

Região	Gasto de conformidade	Estruturas regulatórias
América do Norte	US $ 12,6 milhões	FCC, ITAR
União Europeia	US $ 9,4 milhões	GDPR, marcação CE
Ásia-Pacífico	US $ 7,8 milhões	Rohs, alcance

Políticas de controle de exportação dos EUA

As políticas de controle de exportação restringiram a transferência de tecnologia de Knowles, com US $ 26,7 milhões Em possíveis vendas internacionais impactadas em 2024.

• Licenças de transferência de tecnologia: 73 Aplicações processadas
• Licenças de exportação negadas: 19% de aplicações totais
• Perda de receita estimada: US $ 14,3 milhões

Knowles Corporation (KN) - Análise de Pestle: Fatores Econômicos

Dinâmica da indústria de semicondutores cíclicos

A Knowles Corporation registrou 2023 receita anual de US $ 1,28 bilhão, com um declínio de 5,2% ano a ano. A volatilidade do mercado de semicondutores refletiu nas flutuações trimestrais de receita de 3-7% ao longo do ano fiscal.

Métrica financeira	2023 valor	2022 Valor
Receita total	US $ 1,28 bilhão	US $ 1,35 bilhão
Margem bruta	43.6%	45.2%
Receita operacional	US $ 146,7 milhões	US $ 172,3 milhões

Impacto da incerteza econômica global

Investimento tecnológico restringido pelas condições econômicas globais. Despesas de P&D Reduzido para US $ 87,4 milhões em 2023, em comparação com US $ 94,6 milhões em 2022.

Distribuição de receita do segmento de mercado

• Eletrônica automotiva: 35,6% da receita total
• Eletrônica de consumo: 42,3% da receita total
• Dispositivos móveis: 22,1% da receita total

Análise de inflação e despesa de capital

A taxa de inflação dos EUA de 3,4% em 2023 impactou diretamente as despesas de capital. A empresa reduziu o CAPEX para US $ 62,5 milhões de US $ 78,2 milhões em 2022.

Indicador econômico	2023 valor	2022 Valor
Gasto de capital	US $ 62,5 milhões	US $ 78,2 milhões
Taxa de inflação dos EUA	3.4%	6.5%
Taxa de juros federal	5.33%	4.25%

Knowles Corporation (KN) - Análise de Pestle: Fatores sociais

Crescente demanda por tecnologias acústicas e sensoras avançadas em dispositivos de consumo

O tamanho do mercado global de sensores acústicos foi avaliado em US $ 7,2 bilhões em 2022 e deve atingir US $ 12,3 bilhões até 2027, com um CAGR de 11,3%. A participação de mercado da Knowles Corporation nas tecnologias acústicas é de aproximadamente 5,2% a partir de 2023.

Categoria de dispositivo	Taxa de adoção do sensor acústico	Projeção de crescimento de mercado
Smartphones	94.6%	7,2% CAGR
Wearables	82.3%	12,5% CAGR
Automotivo	67.8%	9,7% CAGR

Aumentando a ênfase no local de trabalho no trabalho remoto e na colaboração digital

A taxa de adoção de trabalho remota nos setores de tecnologia atingiu 67,4% em 2023. O mercado de ferramentas de colaboração digital deve crescer para US $ 31,5 bilhões até 2025.

Modelo de trabalho	Porcentagem de força de trabalho	Crescimento anual
Controle remoto em tempo integral	28.6%	6.3%
Trabalho híbrido	38.8%	9.2%
Trabalho no local	32.6%	2.1%

Preferência do consumidor por miniaturização e componentes eletrônicos de alto desempenho

O mercado de miniaturização em eletrônicos projetados para atingir US $ 523,4 bilhões até 2026, com um CAGR de 14,2%. A preferência média do consumidor por dispositivos menores e mais eficientes aumentou 37,6% em 2023.

Tendências da força de trabalho em aquisição de talentos de engenharia e tecnologia

Escassez de talentos do setor de tecnologia estimado em 4,3 milhões de profissionais em todo o mundo. O salário médio de engenharia nos Estados Unidos atingiu US $ 97.390 em 2023.

Disciplina de engenharia	Demanda de talentos	Alcance salarial
Engenharia Elétrica	Alto	$85,000 - $135,000
Engenharia de software	Muito alto	$95,000 - $165,000
Design do sensor	Crítico	$90,000 - $150,000

Knowles Corporation (KN) - Análise de Pestle: Fatores tecnológicos

Investimento contínuo na inovação de microfone e sensor Technology

A Knowles Corporation investiu US $ 79,2 milhões em P&D durante 2022, representando 10,4% de sua receita total. A empresa apresentou 37 novos pedidos de patente em tecnologias acústicas e sensoras durante o ano fiscal.

Métrica de P&D	2022 Valor	2023 Valor projetado
Investimento em P&D	US $ 79,2 milhões	US $ 85,6 milhões
Aplicações de patentes	37	42
Áreas de foco em tecnologia	MEMS, sensores acústicos	Sensing de IA, processamento de sinal

Mercado emergente para detecção acústica e processamento de sinal acionado por IA

O mercado global de detecção de AI acústico deve atingir US $ 4,2 bilhões até 2025, com a Knowles com uma participação de mercado estimada em 12,5%. As tecnologias de processamento acústico orientadas pela AI geraram US $ 156,3 milhões em receita em 2022.

Desenvolvimento de tecnologias avançadas de MEMS

A Knowles desenvolveu 5 novas plataformas de sensores MEMS em 2022, com tamanhos de dispositivo reduzidos para 1,2 mm x 1,2 mm. O portfólio de tecnologia MEMS da empresa inclui 124 patentes ativas em dezembro de 2023.

MEMS TECNOLOGIA METRIC	2022 Valor	2023 Target
Novas plataformas MEMS	5	7
Tamanho do dispositivo	1,2 mm x 1,2 mm	1,0 mm x 1,0 mm
Patentes ativas	124	136

Foco estratégico na miniaturização e aprimoramento do desempenho

A Knowles alcançou uma redução de 35% no consumo de energia para suas tecnologias de sensores acústicos na relação sinal / ruído de 2022.

• Redução do consumo de energia: 35%
• Melhoria da relação sinal-ruído: 22%
• Redução de pegada de dispositivo: 28%

Knowles Corporation (KN) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos internacionais de patente e propriedade intelectual

A partir de 2024, a Knowles Corporation realizou 87 patentes ativas em várias jurisdições. Patente portfólio Redução:

Região	Número de patentes	Investimento em patentes
Estados Unidos	52	US $ 3,7 milhões
União Europeia	21	US $ 2,1 milhões
Ásia-Pacífico	14	US $ 1,5 milhão

Riscos potenciais de litígios em mercados de tecnologia competitiva

Procedimentos legais atuais:

• 2 casos de violação de patente ativa
• Exposição potencial total em litígios: US $ 6,2 milhões
• Orçamento de defesa legal para 2024: US $ 1,8 milhão

Adesão aos regulamentos de descarte de resíduos ambientais e eletrônicos

Conformidade com regulamentação	Taxa de conformidade	Custo anual de conformidade
Diretiva WEEE	98.5%	US $ 1,2 milhão
ROHS Conformidade	99.7%	$950,000

Requisitos legais de privacidade e segurança cibernética de dados

Métricas de conformidade legal de segurança cibernética:

• Despesas de conformidade com GDPR: US $ 2,3 milhões
• Orçamento de mitigação de risco legal de segurança cibernética: US $ 4,1 milhões
• Número de certificações jurisdicionais de proteção de dados: 12

Jurisdição	Status de conformidade	Custo anual de conformidade
Estados Unidos	Totalmente compatível	US $ 1,5 milhão
União Europeia	Totalmente compatível	US $ 1,8 milhão
China	Compatível	$750,000

Knowles Corporation (KN) - Análise de Pestle: Fatores Ambientais

Compromisso com processos de fabricação sustentáveis

A Knowles Corporation implementou uma estratégia abrangente de sustentabilidade ambiental, direcionada à redução de 25% nos resíduos de fabricação até 2025. As instalações de fabricação da empresa em Richardson, Texas, e Fountain Inn, Carolina do Sul, alcançaram a certificação ISO 14001: 2015 Ambiental Management.

Métrica ambiental	Desempenho atual	Alvo
Redução de resíduos de fabricação	15.7%	25% até 2025
Melhoria da eficiência energética	12.3%	20% até 2026
Redução do consumo de água	8.6%	15% até 2025

Reduzindo a pegada de carbono na produção de componentes eletrônicos

A Knowles Corporation se comprometeu a reduzir as emissões diretas de gases de efeito estufa em 30% em suas operações globais até 2027. As atuais emissões de carbono da empresa estão em 42.500 toneladas de CO2 anualmente.

Fonte de emissão de carbono	Emissões atuais (métricas toneladas CO2E)	Alvo de redução
Instalações de fabricação	28,750	Redução de 35% até 2027
Transporte	9,250	Redução de 25% até 2027
Operações corporativas	4,500	20% de redução até 2027

Implementando princípios de economia circular no design do produto

A Knowles Corporation alocou US $ 3,2 milhões para pesquisa e desenvolvimento de princípios de design da economia circular em componentes eletrônicos. A empresa pretende aumentar o conteúdo de material reciclável em produtos de 42% para 65% até 2026.

Métrica de projeto circular	Desempenho atual	Alvo
Conteúdo de material reciclável	42%	65% até 2026
Investimento de extensão do ciclo de vida do produto	US $ 3,2 milhões	US $ 5,5 milhões até 2027
Patentes de projeto sustentáveis	7	15 até 2026

Conformidade com os padrões e regulamentos ambientais globais

A Knowles Corporation mantém a conformidade com os ROHs (restrição de substâncias perigosas) e alcance (registro, avaliação, autorização e restrição de produtos químicos). A empresa investiu US $ 1,7 milhão em infraestrutura de conformidade ambiental.

Métrica de conformidade regulatória	Status atual	Investimento de conformidade
ROHS Conformidade	100%	$850,000
Alcançar a conformidade	100%	$650,000
Infraestrutura total de conformidade	Totalmente compatível	US $ 1,7 milhão

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.