Better Health for All

Daktronics' principal goods and services are electronic displays, which are neutral in their direct health impact. However, the company's products, such as ITS dynamic message signs, are subject to regulations due to alleged concerns over driver safety, indicating potential moderate health-harming externalities.

During the COVID-19 pandemic, the company's business, operations, and financial results were impacted, and it briefly closed its China production facility and suspended production at its Ireland and Minnesota facilities for two weeks. Daktronics provides employees and their families with access to health programs, including benefits that support physical and mental health. The company also has a Substance Abuse Policy and provides training on safety measures for job sites and facilities. Daktronics invests in product design and development, with expenses ranging from $26,846 thousand in FY2021 to $35,742 thousand in FY2024, including advancing sustainable technologies. The company is subject to regulations in privacy, data protection, and information security.

Fair Money & Economic Opportunity

Daktronics, Inc. is a manufacturer of electronic display systems, not a financial institution.

The company's core business does not involve offering lending or deposit services to consumers, managing customer finance data, or operating financial service access points. While the company offers financing options for its products, no details on APRs, fees, or customer demographics for these options are provided. Therefore, all KPIs related to fair money and economic opportunity, which are designed for financial services, are not applicable to Daktronics' core business model.

Kind to Animals

No specific, concrete data points were found in the provided articles regarding Daktronics, Inc.'s performance on any of the 'Kind to Animals' KPIs.

The company's core business of manufacturing electronic displays does not inherently involve animal-related operations, testing, or products, and the articles do not provide any information to suggest otherwise or to score any of the defined metrics.

No War, No Weapons

Daktronics delivered displays to military sites in fiscal year 2024 and has procured over 130 LED displays for the U.S. Department of Defense and other federal government agencies since 2019.

One of its product lines, NPN-6600, is suitable for aerial surveillance feeds. The company is subject to United States and foreign anti-corruption and trade control laws and regulations, including export controls and economic sanctions programs. Daktronics has a Conflict Mineral Policy that does not allow conflict minerals from the Democratic Republic of the Congo or Adjoining Countries, and undertook due diligence to determine the conflict minerals status of necessary conflict minerals used in its products for the reporting period of January 1, 2023 to December 31, 2023. The company conducted supplier training sessions on SEC requirements and due diligence expectations, and a supply-chain survey using the EICC/GeSi Conflict Minerals Reporting Template. Daktronics' due diligence measures were based on the Electronic Industry Citizenship Coalition and Global e-Sustainability (EIIC/GeSI) initiative. The company continues to evaluate supplier responses and educate them on its Conflict Mineral Policy.

Respect for Cultures & Communities

Daktronics has 5 formal partnerships with local community groups or entities, including Human Trafficking: IN OUR BACKYARD, Brookings Area United Way, City of Brookings Sustainability Council, Local Emergency Planning Commission, and All Ireland Pollinator Plan.

The company has no reported cultural appropriation incidents. A form is available for stakeholders to share thoughts, questions, or suggestions about ESG efforts, but the coverage of this mechanism across operational sites is not specified.

Safe & Smart Tech

Daktronics has not encountered cybersecurity incidents or identified risks from cybersecurity threats that have materially impaired operations or financial standing.

The company uses encryption of sensitive information, password protections, and restricted access where appropriate or required by law. It employs technical and physical safeguards to protect personal information from unauthorized loss, misuse, or access, and takes steps to ensure third-party agents process data in accordance with applicable law. Users can choose communication preferences, manage account information, and revoke access or delete data. European Union individuals have the right to access and limit use of their personal data, and California residents can request disclosure of data collected over the past 12 months. However, Daktronics' Vanguard dynamic message sign (DMS) configuration software has a default password, and the company recommends changing it. Critical vulnerabilities in these signs are patched within 30-45 days on average. Daktronics has a cybersecurity risk management program based on published frameworks like NIST, including a security team, incident response plan, and employee training. The Strategy and Risk Committee of the Board oversees cybersecurity risks. The company commits to principles like Notice, Choice, Security, and Data Integrity for EU Personal Data, aiming to resolve complaints within 45 days, and adheres to COPPA for children under 13. It provides third parties with only necessary information and processes EU Personal Data compatible with the collected purpose.

Zero Waste & Sustainable Products

More than 98% of a digital display can be recycled.

The company has instituted several waste reduction initiatives, including reusing existing packaging, reusing parts through an Exchange Part Program, implementing recycling and conservation processes at all factory locations and on installation sites, revising recycling processes, using chemical recovery systems for reuse, and employing powder coat processes to reduce VOC emissions. Daktronics has company-wide waste reduction targets with timelines and focuses on product longevity and durability, with product warranties ranging from 1 to 10 years. Two facilities (Ireland and Australia) hold ISO 14001:2015 Environmental Management System certifications. Daktronics commits to following environmental laws, has a chemical review system to avoid highly hazardous chemicals, and instructs employees to report improper handling or disposal of hazardous materials. The company has had no waste disposal violations in the past three years. Daktronics expects suppliers to follow its Supplier Code of Conduct, including maintaining climate-friendly environmental practices. The company provides instructions to customers on how to return parts, encouraging the reuse of original packaging, and is identifying options for customer recycling.