2018

BOSE SUSTAINABILITY REPORT UPDATE

TABLE OF
CONTENTS
01 MESSAGE FROM OUR PRESIDENT AND CHIEF
EXECUTIVE OFFICER

02 AT A GLANCE: FISCAL YEAR 2018

03 PROGRESS TOWARD OUR FY20 MANUFACTURING

SUSTAINABILITY GOALS

04 OUR APPROACH

05 BUILDING MORE SUSTAINABLE PRODUCTS

06 OUR PEOPLE AND COMMUNITIES

07 ENVIRONMENTAL INITIATIVES

08 ABOUT THIS REPORT

Bose 2018 Sustainability Report Update 2

Message from Our President
and Chief Executive Officer
In a changing world, sustainability is important for • We conducted a formal life-cycle assessment
great companies and it’s personally important to (LCA) to evaluate our products’ environmental
me. Since the beginning of Bose’s sustainability impacts, from raw materials and manufacturing
journey, I’ve been an advocate for evolving our through use and end-of-life. This LCA will
business practices to reduce our impact on the help us identify and pursue opportunities for
environment and deliver greater social benefit. I improvements.
believe these efforts are a meaningful reflection of • Our global supply chain and global
Bose’s Essence and Values, but more importantly, sales functions integrated sustainability
they’re the right thing to do so that future considerations into their annual strategy
generations have the same opportunity to prosper planning process.
as we do today.
While these are great efforts, we are only at
I’m happy to report that we are making progress, the beginning of our journey. To date, Bose has
thanks to our employees and their commitment achieved results by supporting our employees’
to making both Bose and the world around us grassroots efforts and establishing foundational
better. I’m proud of our company’s sustainability corporate sustainability practices. This report
accomplishments and pleased to share some itself, which publicly discloses the progress of our
highlights from the past year: environmental and social activities over the past
• We had a prominent 1.7 MW solar panel array year, is an example of a common practice that is
installed at our Framingham, Massachusetts expected of a responsible company.
campus, which brings enough electricity But I often wonder what’s next on this journey.
onto the grid to power a substantial portion Can we move beyond common practices in areas
of the campus. where our efforts will be most meaningful, and
• Our manufacturing plant in Tijuana, Mexico, made help set the bar for state of the art? In the coming
significant progress towards its 2020 goals to year, I’m looking forward to working with our
reduce energy use and waste, and to expand team to identify a topic where we can target a
employee engagement and community support. bolder ambition, then step up and demonstrate
leadership. With commitment and determination,
• In Framingham, Massachusetts a record number
we can change the world—so that future
of employees took part in our 2017 Consumer
generations can have what we have, and more.
Electronics Volunteer Service Day, cleaning
up public lands, working with women’s shelters,
PHIL HESS
and supporting nonprofits that provide low- PRESIDENT AND CHIEF EXECUTIVE OFFICER
income housing and children’s services.

Bose 2018 Sustainability Report Update 1

AT A GLANCE:

Fiscal Year 2018 (FY18)

OUR COMPANY HEALTH & SAFETY

ANNUAL SALES: INCIDENT RATE DART RATE

$4.0 Billion (US)

COMPANY HEADQUARTERS:
2.9 0.5
WORLDWIDE EMPLOYEES: Framingham Total incidents
per 200,000
Total days away,
restriction, and transfer
8,500+ Massachusetts, US person-hours (DART) incidents per
200,000 person-hours

28,816
270,935
251,456 250,697 246,375 ENERGY AND CARBON
24,940 24,294 24,199

228,848 199,983 193,295

192,498 Carbon Emissions at Major Facilities Energy and Carbon Intensity
Energy Use at Major Facilities (GJ) (Tonnes CO2e) Across Major Facilities
26,666 22,205 21,358 21,491
28,816
28,816
270,935
270,935
251,456
251,456 250,697
250,697 246,375
246,375 24,940
24,940 24,294
24,294 24,199
24,199 FY15 FY16 FY17 FY18

47,977 52,499 49,675

40,702
228,848
228,848 Energy Intensity
199,983
199,983 193,295
193,295 0.096 0.075 0.087 0.085
192,498
192,498 (GJ/sq. ft.)
1,386 3,496 4,903 4,201 2,150 2,736 2,936 2,707

FY15 FY16 FY17 FY18 FY15 26,666 FY16

26,666 FY17 FY18 Carbon Intensity
22,205
22,205 21,358
21,358 21,491
21,491 0.010 0.007 0.008 0.008
(Tonnes CO2e/sq. ft.)
Electricity Natural Gas Other Fuel Scope 1 Scope 2

FY15FY15FY16FY16FY17FY17FY18FY18

47,977
47,977 52,499
52,499 49,675
49,675
40,702
40,702 Energy Intensity
Energy Intensity
0.096
0.0960.075
0.0750.087
0.0870.085
0.085
(GJ/sq. ft.) ft.)
(GJ/sq.
1,3861,386 3,496
3,496 4,903
4,903 4,2014,201 2,1502,150 2,7362,736 2,9362,936 2,7072,707

FY15FY15 FY16FY16 FY17FY17 FY18FY18 FY15FY15 FY16FY16 FY17FY17 FY18FY18 Carbon

Carbon
Intensity
Intensity
0.0100.0100.007
0.0070.008
0.008
0.008
0.008
(Tonnes
(Tonnes
CO2e/sq.
CO2e/sq.
ft.) ft.)
Electricity
Electricity Natural
Natural
Gas GasOther
Other
FuelFuel Scope
Scope
1 1 Scope
Scope
2 2

See About This Report (page 8) for details on the scope and boundaries of our energy, carbon, and health & safety data.

Bose 2018 Sustainability Report Update 2

Progress Toward Our FY20
Manufacturing Sustainability Goals As a result of increased
engagement and generosity
In 2017, Bose’s manufacturing operation in Tijuana, Mexico, established a set of sustainability by plant employees, Tijuana’s
targets for FY20, and over the past year has made significant progress toward its goals. community support initiatives
exceeded expectations this
year. The plant achieved
GOAL STATUS FY18 PERFORMANCE its community goal early,
providing charitable funding
to the Hospital Infantil de las
Increase people management Californias, the Hospital de
94% of managers have completed Salud Mental de Tijuana, and the
training participation from
the people management training Fundación Castro Limón, which
84% to 95%
provide medical treatment for
children and adults.

Increase the number of people Nine times as many people

that benefit from our community benefited from Tijuana’s community
programs by 50% (FY17 baseline) programs compared to FY17

Our Tijuana operation

achieved its energy goal
ahead of schedule after
implementing a range of
Reduce energy consumption
Our Tijuana facility reduced energy efficiency and conservation
by 6% per unit produced
use per unit by 16% initiatives in FY18. Progress
(FY17 baseline)
toward the metric also
benefited from an increase
in the units produced, which
put a wind at our back.
Recognizing that we may
not have such favorable
Increase our waste recycling We achieved a 93.5% recycling rate
circumstances in future
rate from 91% to 95%* at our Tijuana facility
years, the plant will continue
to focus on designing and
implementing new energy
reduction initiatives.

* Includes materials that are reused or sold to a third party.

Bose 2018 Sustainability Report Update 3
 3 PILLARS
OF SUSTAINABILITY

SOCIAL ENVIRONMENTAL ECONOMIC

BOSE’S COMMITMENT
TO SUSTAINABILITY
Our Approach
Bose is a company dedicated to continuous improvement in all aspects of our business, and
Our founder, Dr. Amar Bose, sought to build a company our sustainability journey is no different.
where people could realize their fullest human potential.
Today, our commitment to sustainability is a reflection We started this journey several years ago with the establishment of a long-term strategic
of that philosophy and of the Essence and Values that framework that encompasses three pillars of sustainability: environmental, social, and economic.
drive our culture: our pursuit of excellence, our pledge Today, we continue to use a maturity model to measure our progress along a three-year
to conduct business with integrity, and our promise to roadmap, which itself is updated annually to reflect changing conditions and new opportunities.
treat others with respect. His gift of the majority of non-
voting shares to MIT represents a remarkable arrangement Year by year, we’re working to create greater organizational alignment around sustainability.
between a university and a company. It helps ensure Most recently, we formally integrated sustainability considerations into the annual strategy
that Bose will remain private and independent, continue planning process for our manufacturing, global supply chain, and global sales functions. All
to invest for the long term and live out these ideals—a new hires receive an overview of our sustainability program and our company’s commitment
responsibility we take very seriously. to be a good corporate citizen. By embedding best practices more fully into the way we do
business, we’re improving operational efficiency, innovating superior products, and providing
We are proud of the impact our sustainability program enhanced support for our people and communities. It’s a win-win: better for people and
is having, both within our company and beyond. By planet, better for business.
pursuing excellence in how we manage our environmental
See page 8 for more information on our approach to sustainability reporting.
performance and care for our people and communities, we
create a culture that engages and motivates our employees,
attracts the best new talent, and helps us run our business
with greater efficiency. We’ve always been about using THE BOSE SUSTAINABILITY VISION
innovation to deliver real customer benefit, and today
Bose Corporation’s commitment to social, economic, and environmental stewardship is
sustainability is a part of that innovation, helping people
a reflection of our Essence and Values. By applying our Guiding Principles to these three
feel more, do more, and be more.
pillars of sustainability, Bose will increase the value that we provide to our communities.

Bose 2018 Sustainability Report Update 4

Building More Sustainable Products
Sustainability amplifies the innovation challenge, spurring us to create new, groundbreaking products that deliver both delight and improved environmental and social impact.

WELLNESS PRODUCTS TO DELIVER SOCIAL BENEFIT

Bose has always aimed to improve people’s life experience. That’s the philosophy behind our new Wellness
Division, which uses innovative technologies to help our customers live healthier, more engaged lives—so they
can feel more, do more and be more.

Bose Hearphones™
Conversation-Enhancing Headphones
At loud restaurants, dinner parties, or business
meetings, too much background noise can make it
hard to hear what’s important. In 2017, we merged
our expertise in audio amplification and noise-
cancellation to debut Hearphones™, conversation-
enhancing headphones that help wearers focus on
PRODUCT LIFE CYCLE
what they want to hear and reduce unwanted noise.
ASSESSMENT PROJECT
Hearphones™ help people engage with their world
We recently conducted our and enjoy greater social and emotional connection.
first Life Cycle Assessment Bose Noise-Masking Sleepbuds™
(LCA), a process that estimates “The noise level from the rest of the Snoring partners. Street noise. Loud neighbors.
and compares a product’s restaurant was distracting and so I switched Around the world, millions face noise issues that
environmental impacts across to the most focused choice and everybody prevent them from getting a good night’s sleep—
every stage of its life: from but my table disappeared! It was a miracle!” the third pillar of good health, along with nutrition
raw material extraction and and exercise. That’s why we developed Bose
production to consumer use – HearphonesTM user
Sleepbuds™, a pair of soft, tiny, wireless earbuds
and disposal. For this analysis, designed to replace unwanted noise with soothing
we chose the SoundLink® sounds. Our initial testing phase proved that
Revolve+ Bluetooth speaker as Sleepbuds™ help many people achieve better sleep,
a representative product. This and we’re looking forward to helping more people
year, we’re leveraging the LCA after the official launch in 2018.
31ST ANNUAL EDISON AWARDS 2018
findings to develop a product
Bose Hearphones™
scorecard that will help our
designers and engineers further Gold Medal Winner in Social Innovation “Absolutely wonderful! …after several night’s
embed sustainability practices Sub-category: use, sleeping better than ever. Zero snore
into product design. Communication Enhancement noise coming through.”
– SleepbudsTM user

Bose 2018 Sustainability Report Update 5

Our People and Communities
Our people are our greatest CONSUMER ELECTRONICS VOLUNTEER SERVICE DAY
resource. We want them to
In May 2017, Bose’s Consumer Electronics team organized its
thrive in a work environment
annual Volunteer Service Day at our Framingham, Massachusetts
that’s engaging and supportive,
headquarters, during which our employees devoted 1,560 service
and we want them to be able to
hours to the community—a 47% increase in hours volunteered over
put their passion, expertise, and
the year before. In all, more than 30 projects received support.
goodwill to work supporting
Some of our people lent a hand at area women’s shelters, senior
our communities. To enable
centers, and food pantries. Others supported Habitat for Humanity’s
their community contributions,
affordable housing mission or volunteered with Jeff’s Place, a
we recently tripled the amount
nonprofit providing bereavement support services to children. Still
of paid time off available to
others prepared meals for the homeless or collected healthy foods
our corporate employees for
for Daniel’s Table, a nonprofit whose mission is to create a sense of
volunteer efforts, from one day
food security throughout Framingham. In recognition of the impact
to three, and our people are
Bose employees have had over the years, we were humbled to
making the most of it.
receive a formal citation of gratitude from the city of Framingham.

2020 MANUFACTURING GOAL UPDATE

PEOPLE MANAGEMENT
Our Global People Management Initiative improves management skills to foster a
better work environment. At our Tijuana manufacturing plant, 94% of managers
have now received training, bringing us close to our goal of 95% by 2020.

2020 MANUFACTURING GOAL UPDATE

COMMUNITY
Exemplifying our Tijuana employees’ commitment to the community, this year’s
80 Cent Campaign achieved a 50% increase in both participation and per-person
donations, helping the plant meet its community goal early. The campaign allows
employees to donate part of their paycheck to fund treatments and surgeries for
children with cancer, Down Syndrome, and other medical conditions.

Bose 2018 Sustainability Report Update 6

 GOING SOLAR IN FRAMINGHAM
Bose recently had a prominent 1.7 MW solar array
installed at our Framingham, Massachusetts
headquarters. Through a Power Purchase
Agreement, the system brings enough electricity
onto the grid to power a substantial portion of
the campus, which helps Massachusetts meet
its renewable energy goals and demonstrates
our commitment to sustainability. To further
engage our employees on sustainability, we’re
installing a monitoring system that will track and
communicate the energy produced in real time.

Environmental Initiatives
Why wouldn’t a business want to operate more sustainably? The benefits are clear: enhanced efficiency, reduced risk, and lower energy and materials costs,
all while supporting our commitment to reduce our environmental impact. While Bose has already seen valuable business benefits from our eco-efficiency
initiatives, we’re determined to shrink our footprint even further.

2020 MANUFACTURING GOAL UPDATE

2020 MANUFACTURING GOAL UPDATE

WASTE
ENERGY Targeting a 95% recycling rate by FY20,
our Tijuana plant pursued several waste-
In FY18, our Tijuana manufacturing plant undertook several noteworthy
reduction initiatives in FY18. We cut back
energy-reduction projects. These include transitioning additional
on waste batteries by switching from
lighting to LEDs, installing more occupancy sensors/timers, adjusting
battery-powered speaker-testing headsets
air conditioning settings, and insulating ovens and exhaust pipes to
to plug-in models. In the facility cafeteria,
reduce cooling needs. Collectively, our efforts reduced the plant’s
we identified a new opportunity to send
energy consumption by nearly 500,000 kWh annually and helped us
food waste to a local animal farm, and are
exceed our FY20 energy goal.
evaluating opportunities to use reusable
or recyclable cups and plates.

Bose 2018 Sustainability Report Update 7

About This Report

Thank you for

BOSE’S REPORTING APPROACH
reading Bose’s
Bose reports annually on our sustainability efforts. Every two years Bose produces a full sustainability
2018 Sustainability report that contains Standard Disclosures from the Global Reporting Initiative guidelines. In off-years,
we issue brief report updates, like this one, to ensure stakeholder access to timely information on our
Report Update. core metrics and our most impactful environmental, social, and economic activities.
This report covers Our last full report, covering Bose’s 2017 fiscal year, was published in August 2017. It is available for
key activities and download on our webpage.

accomplishments of
Bose Corporation
REPORTING SCOPE & BOUNDARIES
during our 2018
This report covers sustainability-related activities and impacts under Bose Corporation’s operational
fiscal year related control globally, but is not all-inclusive. It also includes select product-related impacts. In this report,
“Bose,” “the company,” “we,” “our,” “its,” and similar terms are used for convenience to refer to Bose
to environmental Corporation and its subsidiaries and branches. Data pertaining to carbon emissions, energy, and health
protection, social and safety contained in this report are subject to restricted boundaries due to data availability; Bose
is in the midst of scaling up tracking capabilities for energy and carbon data, and plans to expand the
responsibility, and number of sites included in its reporting.

economic progress.
Health & Safety Carbon Emissions & Energy Consumption
Data boundaries for health and Data includes all major facilities under Bose’s operational control
safety metrics reflect major at the end of FY18, excluding retail stores. Historical figures for
facilities that were under Bose’s FY15 and FY16 were adjusted in FY17 according to the Greenhouse
operational control at any point Gas Protocol guidelines to account for the divestiture of two
REPORTING PERIOD
in FY18, as well as U.S. retail manufacturing facilities. Energy figures are based on actual energy
This report covers Bose stores and field sales. data or estimates when actual data are not available, and include
Corporation’s 2018 fiscal electricity and fuel consumption. Bose uses the Greenhouse Gas
year (FY18), the time Protocol, The Climate Registry (TCR), and the EPA for all emissions
period from April 1, 2017 conversion factors. Carbon emissions calculations include CO2,
through March 31, 2018. CH4, and N2O.

Bose 2018 Sustainability Report Update 8