Sonos Reports Environmental Progress On Headphones, New Products, and Climate Plan

Rhea-AI Summary

Sonos (NASDAQ: SONO) released its 2024 Listen Better Report, highlighting environmental and social governance progress. The company introduced new products with sustainability features, including Sonos Ace headphones with recycled materials and Arc Ultra speakers with improved energy efficiency. The report details progress on their Climate Action Plan, showing a 6% decrease in total emissions compared to the previous year. Sonos strengthened its commitment to responsible business practices by integrating RBA Code of Conduct into its Supplier Code and supported diversity initiatives, including scholarships for women in sound engineering.

Positive

• 6% reduction in total emissions year-over-year
• Launch of 4 new products with improved sustainability features
• Improved transportation efficiency with Arc Ultra's design allowing 264 more units per cargo container
• Integration of RBA Code of Conduct into Supplier Code, strengthening business practices

Negative

• None.

Insights

Sustainability Expert

The 2024 Listen Better Report showcases meaningful sustainability progress but has immediate financial impact. Key developments include a 6% reduction in emissions and integration of eco-friendly features in new products like Sonos Ace headphones with 18.5% reduced virgin plastic use. The improved shipping efficiency for Arc Ultra, fitting 264 more units per container, will marginally reduce costs.

While these initiatives align with growing consumer demand for sustainable products and may enhance brand value, they represent incremental improvements rather than transformative changes. The commitment to carbon neutrality by 2030 and RBA Code integration demonstrates solid ESG governance but requires sustained investment. The impact on near-term financials appears neutral, though long-term benefits include operational efficiency and risk mitigation.

The company released its 2024 Listen Better Report, detailing actions to embed sustainability into its newest products

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- Today, Sonos (NASDAQ: SONO) released its annual Listen Better Report, offering a comprehensive overview of the company’s Environmental, Social, and Governance (ESG) efforts. Included in the Report are actions taken under Sonos’ Climate Action Plan, introduced in 2021, which serves as a framework to drive the company to carbon neutrality by 2030 and net zero by 2040.

“At Sonos, we aim to build products and experiences that bring joy to people, and to do it in a responsible way,” said Patrick Spence, Sonos CEO. Drawing a parallel between sound quality and sustainability, he added, “Tuning plays an important role in the premium sound of our products. Sonos Ace was expertly tuned to respect the intent of the creators — artists, composers, songwriters, and sound engineers. We use the same rigor in our sustainability efforts and the theme of this year’s report - tuning - reflects our commitment to getting better.”

Creating responsibly-designed products

Building sustainability into product hardware and software is central to Sonos’ efforts to respond to climate change. In 2024, Sonos released four new products that reflect its commitment to provide innovative sound and responsible design. Sonos Ace, the brand’s first-ever headphone product, delivers spatial audio, world-class Active Noise Cancellation, and exceptional comfort — all built for durability and everyday use. The headphones feature replaceable ear cushions, recycled materials that reduce virgin plastic by 18.5%, and a travel case made of 75% recycled felt recovered from plastic bottles. Engineered to drive energy efficiency, Sonos Ace’s auto-pause feature minimizes the need for charging and enhances the battery’s lifespan.

Arc Ultra, Sub 4, and Roam 2 are new generation speakers with meaningful sustainability features, from reduced idle energy consumption to improved serviceability using screws in place of adhesives. Arc Ultra, featuring breakthrough Sound Motion™ technology, delivers a powerful, immersive experience in a slimmer design compared to its predecessor. Its smaller footprint means 264 more units can be fit on a single cargo container, helping reduce transportation emissions.

All Sonos products are wrapped in sustainable packaging, providing superior protection and a premium unboxing experience. Sonos Ace’s packaging is entirely recyclable and made from sustainably sourced paper certified by the Forest Stewardship Council®. The packaging team continues to innovate by utilizing recyclable plant-based fibers and post-consumer recycled plastics.

“Just like our products, our sustainability and social impact efforts need tuning to reflect the needs of our stakeholders,” said Deji Olukotun, Sonos Director of Sustainability and Corporate Strategy. “Each year, we strive to improve by refining our practices. This includes gathering more precise emissions data, finding more sustainable materials, and redesigning our packaging.”

In line with its Climate Action Plan, Sonos publishes its Scope 1, 2, and 3 greenhouse gas emissions annually. Improved data granularity, reduced product energy consumption, and a shift away from air freight used for transport contributed to Sonos’ 6% decrease in total emissions compared to the previous year. Sonos also strengthened its commitment to the Responsible Business Alliance (RBA), an industry group that advocates for fair labor practices, by fully integrating the RBA Code of Conduct into its Supplier Code of Conduct, setting more stringent requirements for labor, health and safety, and environmental practices.

Advancing philanthropic efforts and diversity, equity, and inclusion

This year, Sonos’ social impact program supported fifteen nonprofits around the world to drive positive impact. Sonos reaffirmed its commitment to equity in sound engineering, where women represent less than 3% of industry professionals. In 2024, Sonos sponsored more than twenty scholarships for women at the Immersive and Inclusive Audio Institute International to train in Dolby Atmos spatial audio, helping narrow the sound production gender gap through this emerging technology.

Sonos remains dedicated to environmental preservation through its ongoing membership with 1% for the Planet, donating 1% of annual Certified Refurbished sales to high-impact organizations focused on environmental conservation. Additionally, Sonos renewed its commitment to the Blue Whales, Blue Skies program, which slows down ocean vessels in shipping lanes with high whale populations.

Continuing its efforts towards Diversity, Equity, & Inclusion (DEI), Sonos’ dedicated DEI team works across the company and tracks progress. In FY24, we established a DEI Council that collaborates closely with the DEI team and Employee Resource Groups to drive change within their functions and influence their peers to do the same. For the third consecutive year, we achieved a high score of 100 for LGBTQIA+ equity and workplace friendliness in the Human Rights Campaign Corporate Equality Index.

To read the full Sonos 2024 Listen Better Report, please visit sustainability.sonos.com.

About Sonos

Sonos (Nasdaq: SONO) is the world’s leading sound experience company. As the inventor of multi-room wireless home audio, Sonos innovation helps the world listen better by giving people access to the content they love and allowing them to control it however and wherever they choose. Known for delivering an unparalleled sound experience, thoughtful design aesthetic, simplicity of use, and an open platform, Sonos makes the breadth of audio content available to anyone. Sonos is headquartered in Santa Barbara, California. Learn more at www.sonos.com.

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FAQ

What sustainability features does the new Sonos Ace headphone include?

Sonos Ace features replaceable ear cushions, 18.5% reduction in virgin plastic through recycled materials, a travel case made of 75% recycled felt, and auto-pause feature for energy efficiency.

How much did Sonos (SONO) reduce its emissions in 2024?

Sonos reported a 6% decrease in total emissions compared to the previous year, achieved through improved data granularity, reduced product energy consumption, and reduced air freight usage.

What environmental initiatives did Sonos (SONO) implement in 2024?

Sonos implemented sustainable packaging, donated 1% of Certified Refurbished sales through 1% for the Planet membership, and participated in the Blue Whales, Blue Skies program for ocean conservation.

What are Sonos (SONO) carbon neutrality goals?

Sonos aims to achieve carbon neutrality by 2030 and net zero emissions by 2040 under its Climate Action Plan introduced in 2021.