Environmental

Low Direct Emissions Profile: Keysight Technologies operates primarily in electronic design and test solutions, resulting in a relatively low direct greenhouse gas emissions footprint compared to heavy manufacturing peers. The company’s operations are not energy-intensive, and it has disclosed ongoing efforts to improve energy efficiency and reduce emissions intensity in its facilities.

Sustainable Product Design: Keysight integrates eco-design principles into its product development, focusing on energy efficiency, product longevity, and recyclability. The company has set targets to increase the use of sustainable materials and reduce hazardous substances in its products, aligning with global regulatory standards.

Resource Management Initiatives: The company has implemented water and waste reduction programs at major sites and reports progress toward landfill diversion and responsible e-waste management. These initiatives are material given the scale of Keysight’s global operations.

Keysight demonstrates strong environmental performance through low operational emissions, sustainable product design, and resource management. Its proactive approach and transparent reporting position it favorably versus sector peers.

Social

Talent Development and Retention: Keysight invests heavily in R&D, with nearly 19% of revenue allocated, supporting a highly skilled workforce and fostering innovation. The company offers competitive compensation and professional development, contributing to above-average employee retention rates.

Diversity, Equity, and Inclusion (DEI): The company has formal DEI programs and discloses workforce diversity metrics. While gender and ethnic diversity in technical roles remain below tech sector leaders, Keysight has set measurable improvement targets and reports incremental progress.

Product Safety and Customer Impact: Keysight’s solutions are critical for safety and reliability in end markets such as aerospace, defense, and healthcare. The company maintains robust product quality and safety protocols, with no material product recalls or controversies reported in recent years.

Keysight’s strong investment in talent and commitment to DEI underpin its social performance. While diversity metrics lag top-tier peers, the company’s transparent reporting and improvement initiatives support a positive trajectory.

Governance

Experienced and Independent Board: Keysight’s board is majority independent, with diverse expertise in technology, finance, and global operations. The company has separated the roles of CEO and Chair, supporting effective oversight.

Robust Risk Management and Compliance: The company maintains comprehensive risk management frameworks, including cybersecurity, supply chain, and regulatory compliance. There have been no material governance controversies or regulatory actions in recent years.

Shareholder Alignment and Capital Discipline: Keysight demonstrates prudent capital allocation, with moderate leverage (debt/equity ~0.5) and disciplined use of stock-based compensation (~3% of revenue). Executive compensation is tied to performance metrics, aligning management and shareholder interests.

Keysight’s governance structure and risk controls are robust, with strong board independence and alignment of management incentives. The company’s track record of compliance and capital discipline supports stakeholder confidence.

Overall Score

Keysight Technologies exhibits strong ESG performance across all pillars. Its low environmental footprint, investment in talent, and robust governance practices position it as a sector leader. While diversity metrics and environmental targets have room for further improvement, the company’s transparent reporting and proactive initiatives support sustained ESG leadership.