Kimball Electronics Unveils 2025 Annual Sustainability Report: "Building Tomorrow, Together"
On March 19, 2026, Kimball Electronics, Inc. (Nasdaq: KE) announced the release of its highly anticipated 2025 *Guiding Principles Report*, which details the company’s advancements in sustainability and commitment to environmental, social, and governance (ESG) principles. The report is themed "Building Tomorrow, Together," encapsulating the company's ongoing dedication to creating a sustainable future in collaboration with its stakeholders.
1. A Comprehensive Approach to Sustainability
Now in its seventh edition, the *Guiding Principles Report* highlights how Kimball Electronics integrates sustainability across all aspects of its operations. The report is structured in accordance with the Amended European Sustainability Reporting Standards (ESRS) and the Corporate Sustainability Reporting Directive (CSRD), aligning its disclosures with globally recognized frameworks such as GRI Standards, SASB (EMS & ODM), the UN Sustainable Development Goals (SDGs), the UN Global Compact (UNGC), and the TCFD framework.
Richard D. Phillips, Chief Executive Officer of Kimball Electronics, emphasized the significance of this year's theme: *“Building Tomorrow, Together is more than a theme for this year’s report. It is the way we lead.”* He reiterated the company’s commitment to sustainability, stating, *“In 2025 we reaffirmed our commitment to shaping a sustainable future alongside our stakeholders…”*
2. Key Achievements in Sustainability
The report outlines several significant accomplishments in various sustainability domains, illustrating Kimball Electronics' progress towards its ambitious goals.
Climate Action
Kimball Electronics reported a 9.3% decline in Scope 1 and 2 emissions year-over-year, bringing the company closer to its target of a 42% absolute reduction by 2030, based on a 2024 baseline. This effort aligns with their long-term objective of achieving net-zero emissions by 2050. The company achieved an A- Leadership level score in the CDP Climate Change assessment, highlighting its strong performance in climate-related initiatives.
Renewable Energy
A notable 37% of the company’s electricity consumption came from renewable sources, marking a 12% increase from the previous year. This progress supports Kimball's goal of utilizing 100% renewable electricity across all its locations by 2030.
Waste Management
Kimball Electronics achieved an impressive 92% beneficial use of waste, aligning with its "zero waste" target. Additionally, hazardous waste intensity was reduced by 13% from the 2024 baseline, supporting the company's aim for a 25% reduction.
Water Stewardship
The company reported 12% recycled water usage, progressing towards its goal of recycling one-third of its water globally by 2030, particularly in high-stress locations. The improvement in Kimball's CDP Water Security score to A- Leadership level, from a B the previous year, underscores its commitment to responsible water management practices.
Health and Safety
In the realm of employee well-being, Kimball Electronics reported a remarkable 22% reduction in its Total Recordable Incident Rate, which stands at 83% lower than the average for the U.S. industry.
Governance and Accountability
For the fiscal year 2025, the company’s executives were rewarded with an Above Threshold multiplier for their performance, reinforcing the link between executive compensation and the achievement of sustainability targets. This practice aims to maintain high rankings in top-tier ESG assessments, including the S&P Global CSA 94th Percentile, EcoVadis Gold, and MSCI AA.
Community Investment
Kimball Electronics exceeded its annual giving target of donating 1% of its adjusted net income, achieving 115% of this goal. Total contributions reached $325,000, supported by over 3,050 hours of volunteer work, reflecting the company's commitment to community engagement.
3. Conclusion
The release of the 2025 *Guiding Principles Report* reaffirms Kimball Electronics' position as a leader in sustainability within the electronics manufacturing sector. By focusing on key environmental, social, and governance issues, the company is not only striving for long-term business success but also making a meaningful impact on the communities and environments it operates in.
The full report is accessible on the Kimball Electronics Sustainability webpage, providing stakeholders with a comprehensive overview of the company's sustainability efforts and achievements.
About Kimball Electronics, Inc.
Kimball Electronics is a global manufacturer offering Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions. Headquartered in Jasper, Indiana, the company operates in various countries, including the United States, China, Mexico, Poland, Romania, and Thailand, delivering manufacturing services across multiple industries. With a commitment to quality and ethical standards, Kimball Electronics continues to foster lasting relationships and drive global success.