HNI : Corporate Responsibility Report (HNI 2025 CR Report)

About this update from Hni Corporation

‌Corporate Responsibility 2025 Progress Report ‌Letter from the CEO We are entering an era of unprecedented opportunity in HNI history. Welcoming Steelcase into our family of brands expands our role and leadership in the industry, and with that growth comes even greater responsibility for our people, our communities, and our planet. As we begin this next chapter, our long-standing values continue to serve as our foundation and our compass. The beliefs that have guided HNI for 78 years remain unchanged. We believe in making positive change for our people, our planet, and our communities. We believe in creating a community and workplace where everyone is treated with fairness, dignity, and respect. We believe improvement is always possible, and that every challenge brings an opportunity to learn and grow. We believe that hard work, determination, and teamwork enable us to achieve more together. Above all, we believe in doing what is right. These values reflect who we are and who we strive to be as we search for new and better ways to positively impact the planet, operate responsibly, and work toward a future that benefits us all. Sustainability is woven into every choice we make and strengthened by collaboration at every level. This year's Corporate Responsibility Progress Report highlights how these values and beliefs have spurred progress across HNI, made possible by members throughout our organization. Our key initiatives and accomplishments for 2025 include: Employee safety and wellbeing : We advanced opportunities for development and engagement, provided meaningful training, and cultivated inclusive leadership to create workplaces where every member can contribute and thrive. Emissions reduction : As of the end of 2025, HNI achieved a 78% reduction in absolute Scope 1 and 2 emissions compared to a 2018 base year. After surpassing our original 2025 emissions target, we are setting new SBTi-aligned targets to continue our progress. Waste reduction : As of 2025, 60 percent of our facilities have achieved zero waste. Material selection : We increased transparency by identifying 100 percent of chemical ingredients by spend across our Workplace Furnishings business. Product design : HNI launched the Allsteel Evo carbon-neutral task chair and Heat-N-Glo SupremeX-I30, which features a new burner design that uses 14 percent less energy than similar units. Packaging : We eliminated expanded polystyrene from packaging across all brands and increased our use of recycled packaging. Looking ahead, the integration of Steelcase represents an important milestone in HNI's journey. Together, we bring expanded capabilities, deeper expertise, and a broader platform to accelerate progress. By combining our strengths, we are better positioned to scale solutions, align our strategies, and raise expectations for responsible design and manufacturing. Over the coming year, we will focus on aligning our sustainability strategies, metrics, and goals, and strengthening governance to support our organization. We are proud of how far we have come, and we are energized by the opportunity ahead. With a strong foundation and a shared commitment to doing what is right, we will continue building on our progress and shaping a more sustainable future together. We invite you to explore this progress report and celebrate the advancements made by members across HNI. As we look to the future, we remain committed to building stronger communities, reducing our environmental impact, and advancing responsible design and manufacturing. Jeffrey D. Lorenger Chairman, President, and Chief Executive Officer HNI Corporation About HNI HNI is a global family of industry-leading brands for the workplace and home. Founded in Muscatine, Iowa, by visionaries C. Maxwell Stanley, Clement Hanson, and H. Wood Miller, HNI opened its doors under the premise that all employees would be treated equally and respectfully as members and owners of a productive industrial enterprise. We remain steadfast to these founding principles. HNI WORKPLACE FURNISHINGS STEELCASE HNI's Workplace Furnishings, Kimball International, Steelcase, and Residential Building Products brands are among the strongest, most widely known and respected in their industries. The depth and breadth of our furniture products, our increased focus on expanding our service otferings, the scale and capability of our manufacturing operations, and the strength of our distribution footprint enable us to provide the best solutions to meet the needs of every customer and every environment -from the largest multinational organizations to the local entrepreneur. Our Residential Building Products segment includes a full array of gas, electric, wood, and pellet-fueled fireplaces, inserts, stoves, facings, and accessories. Together, these brands make up North America's largest manufacturer of hearth products and services. In 2023, HNI celebrated Kimball International joining our family of brands. Aligned with HNI's commitment to culture and a history of craftsmanship, Kimball International's brands have focused on turning ordinary spaces into meaningful places in the workplace, health, education, and hospitality markets since 1950. HNI further expanded its portfolio with the addition of Steelcase, a global leader in workplace furnishings and design. This addition strengthens HNI's position as a global provider of workplace solutions, bringing together complementary brand portfolios, customer relationships, and capabilities. Together, the organizations enhance scale, innovation, and expertise to meet evolving customer needs, while maintaining the distinct strengths and identities of their respective brands. KIMBALL INTERNATIONAL RESIDENTIAL BUILDING PRODUCTS Governance HNI's Board of Directors oversees the business affairs of the corporation. The Board has established a corporate culture of accountability, responsibility, and ethical behavior through the careful selection and evaluation of senior management and directors. For many years, HNI has been proud to have a Board of Directors made up of highly qualified and diverse business leaders representing all of our stakeholders. With the exception of our CEO, all of our directors operate independently under the New York Stock Exchange (NYSE) rules and applicable law. Details regarding the qualifications and backgrounds of our current Board are available on our website . The corporate responsibility strategy and program, encompassing HNI's publicly announced goals, is overseen by the Board, including quarterly reviews. Sustainability is embraced in every aspect of HNI culture, at all levels of the organization, and is centrally considered in business decisions. To learn more about our Governance and Board of Directors, visit our website . Basis for This Report Scope HNI Corporation ("HNI" or the "Company"), a publicly traded company on the NYSE under the ticker symbol "HNI," is headquartered in Muscatine, Iowa. This report covers global operations within HNI's operational control, but does not include Steelcase, which was acquired in December 2025. Reporting Year The report focuses on our progress and performance for fiscal year 2025, spanning December 29, 2024, to January 3, 2026, unless otherwise noted. Data Integrity In data calculations, HNI documents sources of estimation and outcome uncertainty, particularly for those metrics subject to a high level of measurement uncertainty. This document was prepared using data available at the time of publishing. Historical data is updated for acquisitions, divestitures, changes in methodology, and significant errors. In this report, historical data has been updated to include Kimball International, which was acquired in 2023, but does not include Steelcase, which was acquired in December 2025. HNI engaged ERM CVS, an independent third-party assurance provider, to conduct limited assurance of HNI's Scope 1, Scope 2, Scope 3, and biogenic greenhouse gas (GHG) emissions as well as water withdrawals. The engagement followed ISO 14064-3 and ISAE 3000 (Revised) standards. Verification Statement > Reporting Frameworks This report was prepared with reference to the Global Reporting Initiative (GRI) Standards and is informed by the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD). Materiality HNI conducted a full materiality assessment in 2022 to identify our strongest environmental, social, and governance priorities across all stakeholder groups. HNI reviews the materiality assessment annually to ensure it accurately reflects the most significant priorities across all topics and stakeholders. HNI engaged a third party to conduct the initial materiality assessment with the intent to seek a deeper understanding of HNI's greatest impacts, opportunities, and risks, including how they influence stakeholder decision-making. Perspectives of several key stakeholder groups-including management, members, suppliers, and customers-were gathered through a combination of direct engagement, analysis, public data, and other research to determine the significance. Items of highest priority to stakeholders included, but were not limited to, culture and inclusion, climate change and strategy, and training and education. The assessment continues to inform our strategy and reporting, while also providing a framework for planning future sustainability goals and objectives. Materiality Table > Trademarks, Trade Names, Logos © 2026 HNI Corporation and/or its affiliates. All rights reserved. The HNI brands mentioned in this report, specifically the logos on page 3, are trademarks of HNI Corporation or its affiliates. Indoor Advantage ™ is a trademark of SCS Global Services, FSC ® and its logo are registered trademarks of the Forest Stewardship Council ® . LEED-an acronym for Leadership in Energy and Environmental Design ™ - is a registered trademark of the U.S. Green Building Council ® . WELL Certified ® is a registered trademark of the International WELL Building Institute ™ . BIFMA ® is a registered trademark of the Business + Institutional Furniture Manufacturers Association. LEVEL® is a registered trademark owned by BIFMA®. Health Product Declaration® and the Health Product Declaration Collaborative® are registered trademarks, owned and overseen by the Health Product Declaration Collaborative, and are subject to all applicable laws governing the use of trademarks. Each of these trademarks is licensed by HNI Corporation or its affiliates or otherwise used with permission. All other trademarks are owned by their respective owners. FSC Trademark license code: FSC-CO14704 Future-Thinking Language This report contains "forward-looking" statements based on current expectations regarding future plans, events, outlooks, objectives, and financial performance, specifically including, but not limited to, the goals stated on page 6. Forward-looking statements can be identified by words including "expect," "believe," "anticipate," "estimate," "may," "will," "would," "could," "confident," or other similar words, phrases, or expressions. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Corporation's actual future results and performance to ditfer materially from expected results. A description of these risks can be found in the Corporation's annual and quarterly reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q. The Corporation assumes no obligation to update, amend, or clarify forward-looking statements. ‌Goal Progress HNI's corporate responsibility strategy is guided by measurable goals and transparent reporting of performance against those commitments. Respecting People GOAL PROGRESS Reducing Impact GOAL PROGRESS Redefining Tomorrow GOAL PROGRESS Invest 1% of pre-tax profits, on average, in communities where HNI operates 100% strategic* supplier compliance with HNI Code of Conduct by 2022 HNI will continue to champion an inclusive workplace for everyone, consistent with corporate values GOAL EXCEEDED Since 2019, the HNI Charitable Foundation has donated: 1.3% pre-tax profits on average $6.3 million to 183 unique community organizations More than $1.9 million in scholarships GOAL EXCEEDED Achieved 100% compliance across all business segments ahead of schedule in 2024 Advanced even further by integrating sustainability and ESG factors into supplier scorecards across the business GOAL ACHIEVED Achieved 100% participation in Accountable Inclusive Leadership training Source 100% renewable electricity across global operations annually Reduce absolute combined Scope 1 and 2 greenhouse gas (GHG) emissions by 35% by 2025, from a 2018 baseline Reduce Scope 3 GHG emissions by 40% per ton of goods sold by 2035, from a 2018 baseline Achieve a 50% energy intensity reduction by 2035 from a 2018 baseline GOAL ACHIEVED Sourced 100% renewable electricity for our global operations, meeting our RE100 and EPA Green Power Partner commitments GOAL EXCEEDED Reduced Scope 1 and 2 GHG emissions by 78% since 2018 GOAL IN PROGRESS Scope 3 emissions intensity decreased by 2% since 2018 Absolute Scope 3 emissions decreased by 34% since 2018 GOAL IN PROGRESS Energy intensity increased by 8% since 2018 due to changes in production Absolute energy consumption decreased by 27% since 2018 Eliminate non-recyclable foam packaging and move toward 100% recyclable packaging by 2025 Evaluate 100% of materials and chemical substances in products for human and ecosystem impacts and attempt to minimize those impacts through Design for the Environment by 2025 GOAL ACHIEVED Eliminated 100% of expanded polystyrene (EPS) foam packaging across all manufactured products GOAL ACHIEVED Assessed 90% of materials across all brands for regulated PFAS, with full material disclosure analysis progressing across product segments *Previously referred to as Tier 1, defined as those suppliers that account for 75% of our spend Achieve zero waste to landfill for all manufacturing facilities by 2030 GOAL IN PROGRESS Achieved zero waste to landfill at 14 of 23 manufacturing facilities Achieved third-party verified TRUE Certification at three facilities GOAL 100% strategic * supplier compliance with HNI Code of Conduct PROGRESS Achieved 100% compliance across all business segments ahead of schedule in 2024. Advanced even further by integrating sustainability and ESG factors into supplier scorecards across the business. *Previously referred to as Tier 1 , defined as those suppliers that account for 75% of our spend. GOAL Invest 1% of pre-tax profits on average, in communities where HNI operates PROGRESS Since 2019, the HNI Charitable Foundation has exceeded the goal by donating an average of 1.3% pre-tax profits. Proudly, the Foundation has invested over $6.3M to 183 unique community organizations and more than $1.9M in scholarships during this time period. In 2025, the Foundation supported key community initiatives including the University of Iowa Tippie College of Business expansion, the Indiana University Health Foundation expansion, and the Muscatine Community College Technology Center expansion. We also continued our support of City of Hope, advancing research for life-threatening illnesses. Respecting People Continued investments in communities, supplier responsibility, and inclusive leadership programs support HNI's commitment to members, partners, and the communities where we operate. Reducing Impacts Operational initiatives, renewable electricity procurement, and efficiency improvements continue to reduce emissions, energy use, and waste across HNI. 0 100,000 180,686 173,143 167,629 50,000 46,175 38,793 20,606 2018 2019 2020 2021 2022 2023 2024 2025 186,157 174,894 155,962 150,000 100% RENEWABLE 100% RENEWABLE 100% RENEWABLE 200,000 82% RENEWABLE 90% RENEWABLE 77% RENEWABLE 0% RENEWABLE Renewable Electricity Non-Renewable Electricity 0% RENEWABLE 250,000 Renewable Electricity Sourced in MWh PROGRESS In 2025, HNI sourced 100% renewable electricity for our global operations. GOAL Source 100% renewable electricity ACROSS GLOBAL OPERATIONS ANNUALLY 226,972 236,932 50,000 47,534 50,459 0 2018 2019 2020 2021 2022 2023 2024 2025 49,059 67,207 73,558 76,103 100,000 150,000 200,000 217,812 226,713 250,000 Absolute Combined Scope 1 and 2 GHG Emissions in MTCO2e PROGRESS We've reduced Scope 1 and 2 combined GHG emissions by 78% since 2018. GOAL Reduce absolute combined Scope 1 and 2 GHG emissions by 35% BY 2025 FROM A 2018 BASELINE 2025 2024 2023 2022 2021 2020 2019 2018 0 2 4 6 8 8.13 8.29 8.05 8.44 8.32 9.63 10 10.50 11.17 12 Scope 3 Emissions in MTCO2e per ton of product sold PROGRESS We've reduced Scope 3 GHG emissions per ton of goods sold by 2% since 2018. GOAL Reduce Scope 3 GHG emissions by 40% PER TON OF GOODS SOLD BY 2035 FROM A 2018 BASELINE Reducing Impacts Operational initiatives, renewable electricity procurement, and efficiency improvements continue to reduce emissions, energy use, and waste across HNI. 2024 4 1,000,000 2 500,000 0 2018 2019 2020 2021 2022 2023 2025 0 2018 2019 2020 2021 2022 2023 2024 2025 8.27 GOAL Achieve a 50% energy intensity reduction BY 2035 FROM A 2018 BASELINE PROGRESS Energy intensity has increased 8% due to changes in production. At the same time, we've reduced absolute energy consumption by 27%. Energy Intensity in GJ per ton of products sold Total Energy Consumption in GJ 10 2,500,000 8.71 8.44 8.59 8.65 2,148,100 1,500,000 8.41 7.98 2,013,810 8 7.68 2,000,000 1,899,340 1,918,960 1,822,420 1,614,080 1,548,280 1,560,793 6 WASTE TO LANDFILL SINCE 2021 75 % DIVERSION 91 % IN 2025 WASTE Waste to Landfill and Waste Diverted in tons Landfill 80,000 71% DIVERSION 73% DIVERSION Diversion 70,000 22,067 20,296 60,000 81% DIVERSION 89% DIVERSION 6,752 91% DIVERSION 5,508 11,001 54,438 46,394 52,263 0 2021 2022 2023 2024 2025 GOAL Achieve zero waste to landfill FOR ALL MANUFACTURING FACILITIES BY 2030 PROGRESS HNI celebrates that 14 of 23 manufacturing facilities have achieved zero waste to landfill, including three facilities which received external zero waste certification through GBCI's TRUE program. Manufacturing Facilities Achieving Zero Waste to Landfill 10 15 5 20 0 23 14 of 23 manufacturing facilities have achieved zero waste to landfill . Reducing Impacts Operational initiatives, renewable electricity procurement, and efficiency improvements continue to reduce emissions, energy use, and waste across HNI. 50,000 40,000 30,000 54,569 54,304 20,000 10,000 GOAL Evaluate 100% of materials and chemical substances in products FOR HUMAN AND ECOSYSTEM IMPACTS AND ATTEMPT TO MINIMIZE THOSE IMPACTS THROUGH DESIGN FOR THE ENVIRONMENT BY 2025 PROGRESS HNI continues to advance sustainable product design through improved material transparency and responsible chemical management. We've assessed 90% of materials across all brands for the presence of regulated PFAS. Progress on broader material transparency and full material disclosure analysis: Workplace Furnishings 100% of base materials analyzed* Kimball International 57% of base materials analyzed, reflecting later program implementation Residential Building Products Focused on regulatory PFAS compliance and broader chemical regulatory requirements This work establishes a strong foundation for advancing materials transparency and safer chemistry across our product portfolio. In addition, Workplace Furnishings doubled the number of Health Product Declarations (HPDs) published for its products, further strengthening product transparency and material disclosure. Ecomedes Product Search: HNI | Kimball International *Determined prior to moving product lines and opening a new manufacturing facility. We continue to evaluate the sustainability impacts of these changes and incorporate our findings. *A series is defined as a grouping of products under one series name that highlight similar characteristics, functions, and designs, distinguished by specific model numbers. Redefining Tomorrow Advancing material transparency, responsible chemical management, and product certifications supports the development of more sustainable products and packaging. GOAL Eliminate non-recyclable foam packaging and move toward 100% recyclable packaging BY 2025 PROGRESS Eliminated 100% of expanded polystyrene (EPS) foam packaging across all manufactured products. CERTIFICATIONS BY PRODUCT SERIES * 2025 Indoor Advantage Gold certified series 472 BIFMA Level 1 certified series 144 BIFMA Level 2 certified series 93 BIFMA Level 3 certified series 132 Environmental Product Declarations 38 Health Product Declarations 23 Declare labels 2 MindClick certified programs 8 Certified Autism Resource (CAR) 1 Key Drivers for 2025 Progress We continue to work toward our goals through a focused set of operational, financial, and strategic initiatives. The key drivers below demonstrate how we are delivering measurable results and building momentum for continued success. Impact Area Key Drivers Emissions reduction Completed operational efficiency improvements, building optimization (including building management systems and heat recovery), and evaluation of electrification opportunities Renewable electricity Expanded renewable energy procurement and onsite solar deployment across global operations Waste diversion Implemented facility-level zero waste initiatives and enhanced recycling infrastructure Materials transparency Expanded chemical inventory tracking and product stewardship programs Packaging Eliminated expanded polystyrene across product lines AUG 2025 ‌Awards and Commitments NEWSWEEK'S AMERICA'S MOST RESPONSIBLE COMPANIES Recognized for the 7th year in a row as one of America's Most Responsible Companies ISS ESG PRIME Noted for meeting ambitious ESG performance requirements relative to industry peers ECOVADIS In the top 35% o f companies reportin g to EcoVadis TIME WORLD'S BEST COMPANIES -SUSTAINABLE GROWTH Named to the World's Best Companies for Sustainable Growth for the second year FORBES Ranked in top 100 of America's Most Successful Midsize Companies CDP Awarded a B in climate change disclosure through CDP Heat-N-Glo SupremeX-I30 Continued Commitments U.S. Department of Energy Better Plants ® Partner Signatory of the United Nations Global Compact SmartWay ® Transport Partner with U.S. Environmental Protection Agency Renewable energy goals aligned with RE100 and U.S. Environmental Protection Agency Green Power Partners Aligned emissions targets to the Science Based Targets initiative (SBTi) Evo by Allsteel Looking Ahead As we build on the progress made throughout our corporate responsibility journey, 2026 marks a pivotal milestone for our organization. With the integration of Steelcase, our focus over the coming year is on aligning governance, strategy, and performance commitments to strengthen our collective impact and accelerate progress across our combined enterprise. By leveraging our combined strengths, expertise, and scale, we are well positioned to advance our environmental and social commitments and deliver even greater performance and transparency. We remain committed to: Respecting People MEMBERS Foster a safe, inclusive, and engaging workplace by aligning safety programs, strengthening member engagement, and advancing development opportunities across our combined organization. COMMUNITY Continue investing in the communities where we operate through strategic partnerships, volunteerism, and responsible business practices that create long-term social value. CULTURE & INCLUSION Continue to champion a workplace for everyone, consistent with our corporate values. Reducing Impacts CLIMATE Following the completion of our current science-based target period, we will evaluate opportunities to establish new, ambitious greenhouse gas reduction goals, ensuring continued alignment with climate science. CARBON- INTENSIVE PRODUCTS Reduce the embodied carbon impact of our products, with a focus on high-volume and material-intensive categories. RENEWABLE ENERGY & OPERATIONS Continue advancing renewable electricity procurement and operational efficiency initiatives across our expanded footprint to further reduce operational emissions. Redefining Tomorrow PACK AGING Eliminate non-recyclable packaging materials and transition toward recyclable, reusable, or industrially compostable solutions. CIRCULARITY Advance circular design principles across products to extend product life, increase material recovery, and reduce waste. MATERIAL HEALTH AND TRANSPARENCY Evaluate materials and chemicals used in our products to identify opportunities to transition to safer alternatives and eliminate targeted chemicals of concern, including PFAS. Appendix Click to view and download resources: GRI Index Climate-Related Financial Risk Report (inclusive of TCFD) SASB Disclosure Materiality Table HN I

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