Sonos : 2022 Listen Better Report

2022

Listen Better Report

Environmental, Social and Governance at Sonos

Contents

A Message From Patrick	3
Taking Climate Action	5

Environmental

Our Carbon Footprint	8
Climate Change Risks	11
Product Sustainability	12

Social

Diversity, Equity and Inclusion	22
Supply Chain Responsibility	28
Giving Back	31
Privacy and Cybersecurity	36

Governance

Corporate and ESG Governance

39

ESG Supplement

Sustainable Accounting Standards Board	42
(SASB) Index
Energy Disclosures	47

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A Message From Patrick

At Sonos, we are driven by the belief that listening has a positive impact on our lives. Sound moves us and brings us closer to the people, cultures and communities around us. We bring the same forward thinking to creating responsibly- designed products and experiences, which are built by inclusive teams in pursuit of our mission to help the world listen better.

We committed to avoiding wasteful consumer technology short-termism, instead creating a portfolio of timeless products that are built to last. Our products work together as a system, and we keep them up to date with the latest features and services that ensure your experience continues to evolve long after purchase.

I'm proud to say that thanks to this focus on quality and longevity from the very beginning, nine in 10 of all the Sonos products ever built are still in use today. We continue to learn from our customers, peers and our own engineers, applying these lessons to further extend the life of our products, both old and new. I also know that what we have achieved to date only scratches the surface of our responsibility to our customers and to the planet. So as we continue along our sustainability journey, we're focused on addressing the total environmental impact of our products, from conception to use, re-use and, ultimately, end of life.

Last year, we introduced our Climate Action Plan, with a goal of going carbon neutral in 2030 and reaching net zero by 2040. Our core objective is reducing our carbon emissions. Product energy usage makes up the majority of our emissions, so that's where we're concentrating our efforts. This year, we held a dedicated Energy Efficiency Summit to bring together leaders from across the company, resulting in actionable steps that will reduce the power consumption of our products and ensure we're on track to reach our goals.

To further accelerate our product environmental impact, we formalized a dedicated Product Sustainability team, working cross-functionally to build sustainability into every phase of the product development process. We're making our products more easily repairable, using safer materials, and incorporating recycled plastics. We're also delivering award-winning packaging that utilizes Forest Stewardship Council-certified paper to replace plastics from the unboxing experience.

We can't wait to share details of the progress we are making as we introduce new products and sound experiences in the coming years.

As part of our commitment to empowering listeners everywhere, we also have to listen better - to our customers, our employees and the communities we serve. We are building diverse teams and fostering an inclusive culture across our

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A Message From Patrick

company. We listen to our employees by conducting regular surveys to understand whether we're providing an equitable and inclusive experience across the organization. Findings from our FY22 surveys show record levels of engagement and a strong sense of belonging at Sonos. But there's always room for improvement.

In our FY20 report, we disclosed detailed statistics on our company diversity for the first time, because transparency is the first step on the path to action. This year, we accelerated our diversity, equity and inclusion (DEI) efforts by setting ambitious goals. Over the next five years, we are aiming to increase the representation of Black employees by 25%, Latinx employees by 25% and to ensure that our representation

of women in tech-focused roles mirrors the talent market. We also recognize how important it is for employees to see themselves in leadership, and we are committed to expanding the representation of people of color and women in leadership to reflect the increasing diversity of our teams. In particular, we are investing in our most promising leaders through

The Leadership Consortium, an accelerator program led by Harvard Business School that provides ongoing professional development, mentorship and resources to grow in their careers. As we've built these cohorts, we have been intentional in ensuring that they represent the diverse leadership team we aspire to have as we look to the future at Sonos.

We focus on DEI because we want everyone who uses Sonos to feel like the product was designed just for them. Our commitment to inclusion means creating products and experiences that work for all. Through all of this, we continued our Sonos Radio Stations featuring a variety of artists, our own employees curated stations such as Full Spectrum (LGBTQ+) and Sonido Mio (Latinx). We're very excited about the products and experiences that will be coming soon which will further reflect our commitment to inclusive product design.

In 2018, we launched our Sonos Soundwaves program, with an ambitious goal of providing 100,000 hours of youth music education by 2025. To date, we've invested over $1 million in music education nonprofits around the world and we're thrilled to have achieved our target this year. But this doesn't mean we're finished. We remain committed to the next generation of musical talent and innovators working in that space. We're also deepening our Regenerative Sound program, with a focus on the field of bioacoustics conservation, which uses sound to promote biodiversity in threatened habitats.

Our mission at Sonos is to help the world listen better. When we listen, action must follow. That's what you'll find throughout this report - how we listened. How we acted. And where we know we must improve. We invite you to share your feedback on this report and our actions by emailing us at [e-mail].

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Taking Climate Action

Contributions to

UN Sustainable

Development

Goals

"We live in a world of brilliant sound - the creak of towering glaciers,

Better Listen 2022

Our Climate Action Plan

Today's climate crisis threatens ecosystems and livelihoods around the world. As a global company, we listen to the science and continually look for ways to mitigate our environmental impact, focusing particularly on reducing greenhouse gas emissions across our entire value chain. In FY21, we worked with an external team of climate experts to establish our Climate Action Plan, which includes annual assessments of our carbon footprint that ensure we are on track to fulfilling our commitments.

This year's carbon footprint assessment measured our FY21 emissions, and the results showed no significant shifts in our impact areas compared to FY20. Of our FY21 emissions, 99.9% were Scope 3, stemming from activities in our value chain. As with FY20, our largest Scope 3 contributors were product energy use, supply chain contributions as well as product logistics and distribution, making them priorities

of our Climate Action Plan.

At a Glance: Sonos Climate Action Plan

Step 1	Map and disclose
3	our carbon
	footprint
Step 2	Begin reducing our
Ongoing	carbon footprint
Step 3	Continue reducing
FY30	and go carbon
neutral
Step 4	Continue reducing
FY40	and go net zero

the chirps of biodiverse species - and collective action on climate change is more important than ever before."

DEJI OLUKOTUN

DIRECTOR OF GLOBAL AFFAIRS & SUSTAINABILITY

Report

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