Sonos : 2022 ESG Supplement and SASB Index

ESG Supplement	Listen 2022
	ReportBetter

Environmental		Social		Governance		ESG Supplement	41

Sustainable Accounting Standards Board (SASB) Index

Technology & Communications - Hardware

Product Security

SASB Code	Metric	2022 Response
TC-HW-230a.1	Description of approach to identifying and	The Sonos Product Security team works with development teams to enable adoption of best practices for building secure products. The team
	addressing data security risks in products	pursues this goal by shepherding Sonos products through the security development life cycle (which includes data security best practices),
		building components to solve harder security problems and deploying tools to detect coding and configuration failures.

Employee Diversity & Inclusion

SASB Code	Metric	2022 Response
TC-HW-330a.1	Percentage of gender and racial/ethnic group	U.S. Workforce Ethnicity Representation (by fiscal year)
	representation for (1) management,
						FY21	FY22
	(2) technical staff, and (3) all other employees
	% of U.S. workforce that are ethnically diverse				35%	38%
		% of directors and above that are ethnically diverse			19%	24%
		% of all other roles that are ethnically diverse				37%	41%
		% of Board members that are ethnically diverse				12.5%	12.5%
		% of U.S. new hires that are ethnically diverse				44%	42%
		% of U.S. employees that shared their ethnicity information			77%	81%
		U.S. Workforce Racial and Ethnic Diversity1
			Asian	Black or African	Hispanic or	Indigenous	Multiracial	White
			American	Latino
		% of U.S. workforce	21.3%	5.1%	7.7%	0.5%	3.5%	62.1%
		% of director and above roles	14.4%	2.5%	4.4%	0.0%	2.5%	76.3%
		% of all other roles	22.5%	5.5%	8.3%	0.6%	3.6%	59.5%
		% of new hires	21.9%	8.5%	7.8%	0.3%	3.5%	58.0%

• Percentages are based on the more than 81% of our U.S. workforce that disclosed their ethnicity information. We do not include non-disclosed persons in the analysis population. Director and above roles include the highest level individual contributors and managers, VPs and CXOs. All other roles include positions not included in director and above. Percentages may not add up to100 due to rounding.

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ESG Supplement

Employee Diversity & Inclusion

SASB Code

Metric

TC-HW-330a.1 Percentage of gender and racial/ethnic group representation for (1) management,

(2) technical staff, and (3) all other employee

2022 Response

Global Workforce Gender Diversity

	Female	FY20	Female	FY21	Female	FY22
	Male	Male	Male
% of our global workforce	29.6%	70.4%	31.3%	68.7%	31.2%	68.6%
% of director and above roles1	21.5%	78.5%	25.3%	74.7%	25.4%	74.6%
% of technical roles	19.0%	81.0%	19.0%	81.0%	18.4%	81.6%
% of all other roles1	30.8%	69.2%	32.2%	67.8%	32.0%	68.0%
% of new hires	40.6%	59.4%	40.3%	59.7%	33.2%	66.8%

• Director and above roles include the highest level individual contributors and managers, VPs and CXOs. All other roles include positions not included in director and above.

Report Better Listen 2022

Product Life Cycle Management

SASB Code	Metric	2022 Response
TC-HW-410a.1	Percentage of products by revenue that contain	All Sonos brand products contain some IEC 62474 declarable substances. Sonos manages the presence of IEC 62474 declarable substances
	IEC 62474 declarable substances	by complying with the applicable global regulations and directives on restricted, banned, or reportable substances and chemicals.
TC-HW-410a.2	Percentage of eligible products, by revenue,	Not applicable. Sonos brand products are not in the scope of EPEAT.
	meeting the requirements for EPEAT registration
	or equivalent
TC-HW-410a.3	Percentage of eligible products, by revenue,	Not applicable. The US ENERGY STAR is either not applicable to the marketplace that Sonos brand products occupy, or the products are not in
	meeting ENERGY STAR criteria	the scope of the US program. Sonos brand products are not in the scope of non-US ENERGY STAR programs.
TC-HW-410a.4	Weight of end-of-life products and e-waste	We recovered 217 metric tons of end-of-life products in FY22 across our North America; Asia Pacific; and European, Middle East and Africa regions.
	recovered, percentage recycled

Environmental		Social		Governance		ESG Supplement	43

ESG Supplement

Supply Chain Management

SASB Code	Metric
TC-HW-430a.1	Percentage of Tier 1 supplier facilities audited
	in the RBA Validated Audit Process (VAP) or
	equivalent, by (a) all facilities and (b) high-risk
	facilities

2022 Response

In FY22, we assessed 100% of our key suppliers through a mix of supplier participation in the Responsible Business Alliance Self Assessment Questionnaire and in-person audits. We conducted in-person audits of approximately 71% of key suppliers, progressing toward our FY25 goal to audit 100% of key suppliers annually.

Better Listen 2022

TC-HW-430a.2 Tier 1 suppliers' (1) non-conformance rate with the RBA Validated Audit Process (VAP) or equivalent, and (2) associated corrective action rate for (a) priority non-conformances and (b) other non-conformances

In FY22, we identified a total of 359 findings during audits, deeming 12 critical (3.3%), 212 major (59.1%) and 135 minor (37.6%). Of the critical and major issues, 89.7% were closed within the target time, progressing toward our FY25 goal of 95% of critical and major issues closed within target time. Most commonly, issues concerned working hours, followed by emergency preparedness, response and emergency exists.

Top Nonconformance Categories in FY22 (by number of instances flagged during audits)

Working hours	40
Emergency preparedness and response	21
Industrial hygiene	10
Occupational safety	5
Food, sanitation and housing	5
Freely chosen employment	4

Report

Materials Sourcing

SASB Code	Metric	2022 Response
TC-HW-440a.1	Description of the management of risks	Sonos relies on third-party platforms and partners to identify and manage risks associated with the use of critical materials. As risks are
	associated with the use of critical materials	identified, we work with our supply chain to reformulate raw materials, or to identify alternative materials, parts or suppliers as needed.

Activity Metric

SASB Code	Metric	Response
TC-HW-000.A	Number of units produced by product category	Sonos sold 6.282 million products in FY22.
TC-HW-000.B	Area of manufacturing facilities (square feet)	Sonos does not currently track this information.
TC-HW-000.C	Percentage of production from owned facilities	Sonos does not own any production facilities.

Environmental		Social		Governance		ESG Supplement	44

ESG Supplement

Household & Personal Products

Water Management

SASB Code	Metric	2022 Response
CG-HP-140a.1	(1) Total water withdrawn, (2) total water	Not reported.
	consumed, percentage of each in regions with
	High or Extremely High Baseline Water Stress
CG-HP-140a.2	Description of water management risks and	Although our business is not water intensive, we aim to conserve water whenever possible, including at our offices.
	discussion of strategies and practices to
	mitigate those risks

Product Environmental, Health, and Safety Performance

SASB Code	Metric	2022 Response
CG-HP-250a.1	Revenue from products that contain Registration,	Sonos does not track its product revenue against the REACH Substances of Very High Concern (SVHC) list. Sonos manages the presence of
	Evaluation, Authorisation and Restriction of	REACH SVHCs by complying with the applicable parts of the EU Directive.
	Chemicals (REACH) substances of very high
	concern
CG-HP-250a.2	Revenue from products that contain substances	Sonos does not track its product revenue against the California DTSC Candidate Chemicals List. Sonos manages the presence of chemicals
	on the California DTSC Candidate Chemicals List	on the California DTSC Candidate Chemicals List by complying with the applicable parts of California Proposition 65.
CG-HP-250a.3	Discussion of process to identify and manage	Sonos is legally obligated to meet all applicable global regulations and directives on restricted, banned, or reportable substances and chemicals
	emerging materials and chemicals of concern	in Sonos' products. As part of this compliance obligation, Sonos uses multiple tools, resources, partners, and processes to monitor and react
		to the evolving requirements of applicable regulations and directives. Some of these evolving requirements cover emerging materials and
		chemicals of concern.
CG-HP-250a.4	Revenue from products designed with green	Sonos does not track its product revenue against green chemistry principles. Green chemistry principles often overlap with the legal obligation
	chemistry principles	placed on Sonos to meet all applicable global regulations and directives on restricted, banned, or reportable substances and chemicals in
		Sonos products.

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