Environmental, Social and Governance (“ESG”) matters have long been a vital part of our culture at Turtle Beach Corporation. We believe that doing the right thing for the planet and society is important to the long-term success of our business. This means assessing our environmental and social impacts, establishing an appropriate governance structure, and mitigating our negative impacts when possible.
For our sustainability journey, it’s vital that our employees are engaged with the process and are led by commitment from the top. This is a multiplayer campaign; not a single player one. So, we established an ESG Committee that that meets regularly to identify ESG risks and opportunities, establish and measure progress against ESG goals, and implement ESG initiatives. The committee is led by Turtle Beach’s Global Senior Vice President of Marketing and includes managers and leaders from across the company, including supply chain, product management, engineering, legal, human resources, operations, communications, and sales. The ESG committee reports directly to Juergen Stark, Turtle Beach’s Chairman and CEO.
Environmental sustainability is an integral part of our company’s forward-looking strategy. By formalizing our sustainability goals, we will meet customer expectations, reduce our environmental impact, and minimize exposure to risk. We believe it is important to continuously improve upon our sustainability performance, so we have established a set of clear and measurable goals we aim to achieve to demonstrate our commitment to managing our environmental and social impact.
OPEN WORLD: CLIMATE ACTION
Minimizing our Carbon Footprint
As a global citizen, we are doing our part to reduce our carbon output by seeking to reduce greenhouse gas emissions associated with our corporate offices. As a starting point, we assessed our 2021 carbon footprint to understand where our company stands and set goals accordingly. Based on that assessment, we calculated our carbon footprint and noted the absolute total emissions.
|Scope 1||Scope 2||Scope 1 & 2 - Total|
|450 tonnes of CO2e||100 tonnes of CO2e||550 tonnes of CO2e|
Assessing our Exposure to Climate Risk
To evaluate our exposure to climate risk and ways to mitigate such risk, we developed our Business Continuity Plan: Climate-Related Impacts guided by the Taskforce on Climate-Related Financial Disclosures (TCFD) framework to ensure that we understand our financial and operational exposure to climate-related risks. When creating this plan, we reviewed the potential impacts of climate change on our supply chain, facilities, and product availability.
Although we found that our overall contribution and exposure to climate change impacts is lower than that of companies in other industries, we identified climate-related risks that may impact our operations, production and logistics. Accordingly, our ESG Committee is gathering feedback from across the company to develop a climate risk mitigation plan in 2022.
UPGRADING THE EQUIPMENT: PRODUCTS
Reducing our Products’ Impacts
As one of the world’s top gaming accessory providers, we understand that most of our environmental impacts are associated with products that we sell to our customers. We want to continue our robust history of innovation by improving the sustainability features of our products while maintaining the industry-leading quality that has always set us apart.
We are proud to say that we have been actively working to reduce or eliminate single-use plastics from our packaging since 2015 and have effectively eliminated most of the plastic waste in packaging that cannot be recycled and ends up in landfills.
Notable examples include replacing plastic blisters with a paper-pulp tray (the tray inside the box that holds the product) and eliminating plastic hang tags and plastic bags and twist ties that hold cables. Some plastic packaging materials remain where we have not found a solution that ensures delivery of a quality product to our customers, but we are continuing to research innovative ways to eliminate plastic completely.
As an example, we reduced the plastic use in packaging by 88% (by weight) for our 600X Gen 2 model (as compared to our 600X Gen 1 model). With some of our other models, we reduced plastic use by 87%-96% (by weight). By 2024, we aim to eliminate plastic use in packaging in select products.
Additionally, we have re-engineered our product packaging over time to reduce the overall size and allow for more efficient shipping, which reduces the carbon output associated with shipping our product.
By 2023, we aim to introduce carbon neutral products and place carbon impact labeling on select products. Our team is investigating potential sources of post-consumer recycled plastics (PCR) and ways we can best integrate PCRs into our products. By 2024, we aim to incorporate at least 10% PCRs into select products. These actions will not only minimize the environmental impact of our products but will also enable our customers to make informed purchasing decisions and integrate our products into a more sustainable lifestyle.
We design and build our products for a lifetime of play. However, we know there will come a time when you want to upgrade to the next level. We encourage end-of-life stewardship for our products and support our retail and distributing partners’ recycling programs. The separate collection and recycling of our products at the time of disposal will help conserve natural resources and ensure that they are recycled in a manner that protects human health and the environment. For more information about how you can help support proper recycling of our products and where you can drop off our old products for recycling, please contact your local authority or where you purchased your product.
In addition to supporting responsible recycling of our products, we support resource responsibility and waste reduction through our refurbished product program. Through this program, we refurbish returned products so they can help our customers play at their best level, rather than sit in landfills. Click here to learn about our refurbished products.
COOPERATIVE PLAY: OUR EMPLOYEES
We are focused on continuing to build a corporate culture of integrity and respect, with the goal of working together to drive our business to be creative, innovative and competitive. To achieve these objectives, we have adopted and regularly communicate to our employees the following core values:
- Leadership: We take initiative and lead in our respective roles. We lead by example.
- Teamwork: We work as a team and value diversity. We win together and lose together.
- Excellence: We take pride in our work and seek excellence in everything we do.
- Integrity: We are honest, direct and transparent in all interactions.
- Innovation: We innovate to deliver better products and constantly improve every aspect of our company.
- Execution: We do what we say we will do and take personal accountability for our commitments.
Our employees are our greatest assets in our efforts to drive innovation. We conduct anonymous employee culture surveys annually to monitor employee engagement and satisfaction, while identifying matters that need to be addressed. In 2021, we scored 90% on overall satisfaction, exceeding our goal of 85% across the company. While we take pride in our strong employee satisfaction, we are always seeking to ensure our employees feel valued and proud to be a part of the Turtle Beach team.
We seek to create a highly collaborative culture in which employees feel a sense of pride that their input is sought after and valued. We believe that our culture is a long-term competitive advantage for us, fuels our ability to execute and is a critical underpinning of our employee talent strategy.
Diversity and Inclusion
We believe diversity in the workplace creates an environment where different perspectives lead to improved creativity, productivity, team member engagement, and overall employee happiness. To embrace diversity we:
- Track diversity metrics through our recruiting process
- Include diversity statements in all job postings, our TB careers website, and on social media channels
- Work with diversity-focused, specialized job sites to increase the diversity of our candidate pool
MULTIPLAYER MODE: OUR PARTNERS
Manufacturer Code of Conduct (MCoC)
We always consider ESG matters when evaluating, onboarding, and working with our suppliers. Our MCoC is generally aligned with established industry frameworks and global standards. Our suppliers, manufacturers, and their subcontractors are expected to, and our agreements with them generally require them to, comply with all applicable international, national, and local laws, rules, and regulations related to ESG matters. We expect suppliers to acknowledge and implement the elements listed in our MCoC into their operations and across their own supply chains. In addition, we expect our manufacturers to adhere to our MCoC while conducting business with or on behalf of Turtle Beach.
We understand the importance of avoiding conflict minerals and rely on independent third-party auditing programs to coordinate audits of smelters and refiners in our supply chain for products that may use 3TG metals.
We survey our manufacturing partners using a variation of the Conflict Minerals Reporting Template (CMRT) developed by the Responsible Minerals Initiative (RMI). For 2020, approximately 94% of smelters and refiners, that our manufacturing partners engage with were validated as conformant smelters with responsibly-sourced auditing programs. 6% of the facilities have not yet confirmed and we are continuously working to validate that these facilities also are prohibiting Conflict Minerals. Click here to read our latest conflict minerals report.
LOCAL AREA NETWORK: GIVING BACK
Serving our Communities
We are proud to serve the communities in which we work and live. Turtle Beach Corporation provides budgets for each global office to make local donations, which allows employees to decide how those donation dollars are best utilized in their respective communities. We also support the broader community by giving back to causes that we, our customers, and our partners care strongly about. For example, in 2020, in support of social justice reform we partnered with Roc Nation and Team Roc to provide financial support for The Gathering for Justice and Until Freedom; two organizations whose mission is to end systemic inequality and racial injustice. We also partnered with Shellback Tech to create custom-built gaming stations for America’s disabled veterans and first responders.
In 2021, we sponsored a leadership event for 50/50 Women on Boards, an organization advocating for gender balance and diversity on corporate boards and became an official sponsor of the University of California, San Diego, Esports team providing the team with our top-of-the-line gaming equipment and funding a scholarship. Additionally, our partnership with Gamers Outreach has enabled us to raise donations for multiple programs that create portable video game kiosks for hospitals to provide bedside recreation for children unable to leave their hospital rooms.
In 2022 and beyond, we plan to continue our efforts to support local organizations in our communities that share our common goals of bring people together and giving back.
Chief Executive Officer and Chairman of the Board
“For us, ESG is very simply about doing the right thing… as individuals and as a company. That means treating each other with respect, promoting diversity and opportunities for all of our employees, conducting our business with high integrity, and ensuring that we are helping create a good future for our communities and for future generations.”
ALIGNMENT WITH FRAMEWORKS
We referenced the following globally-recognized frameworks to develop our sustainability and climate-related policies, initiatives, and goals: the United Nations Sustainable Development Goals (SDGs), the United Nations Global Compact (UNGC), the Task Force on Climate-Related Financial Disclosures (TCFD), and the Science-Based Target Initiatives (SBTi). These are leading standards we generally align with to set decarbonization targets and meaningful climate-related KPIs.