Better Health for All

OSI Systems' Healthcare division, Spacelabs, initiated a Class 2 recall on August 13, 2024, for 1506 units of its DM4 Vital Signs Monitor because product labeling did not adequately warn about risks from damaged or outdated batteries.

This indicates that initial risk disclosures were incomplete. Spacelabs has since updated its operations and service manuals and made updated product labeling available online. Regarding healthcare data, Spacelabs Healthcare highlights robust cybersecurity protocols, including adherence to NIST 800-53 and DISA STIG, to protect patient data. The company has also earned Defense Health Agency (DHA) Authority to Operate certification for its patient monitoring devices. However, Spacelabs' privacy policy notes that the European Commission invalidated aspects of the U.S.-EU Privacy Shield, a certification Spacelabs had previously held for data transfers.

Fair Money & Economic Opportunity

OSI Systems, Inc. operates in security, healthcare, and optoelectronics manufacturing, not financial services. The company does not offer lending, deposit, or other financial products to consumers. Therefore, none of the KPIs related to fair money and economic opportunity, such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives (financial), data accessibility (financial), fair lending compliance, wealth building outcome, profit reinvestment (community finance), financial literacy initiatives, debt burden ratio, geographic inclusion (banking deserts), or product simplicity (financial products), are applicable. The provided articles contain no specific, concrete data points for these KPIs within the context of financial services or economic opportunity for marginalized populations.

Any mentions of diversity, community donations, or employee support do not directly align with the specific financial services focus of this value's KPIs.

Honest & Fair Business

OSI Systems operates a 24/7, 365-day global Ethics Hotline, known as the "Make It Right Global Hotline" or EthicsPoint, which is administered by a third party.

This hotline is accessible online and by phone in multiple languages, allowing for anonymous reporting where legally permissible. The company explicitly prohibits retaliation against individuals who report concerns in good faith and commits to confidentiality, initiating thorough investigations and providing feedback on actions taken. In CY 2025, 40 SpeakUp Hotline reports were received across its business units. The company has a robust Anti-Corruption Compliance (ACC) Program that adheres to the principles of the ISO 37001:2016 Anti-Bribery Management System (ABMS) standard. This program applies to employees, vendors, distributors, and other affiliates, prohibiting all forms of bribery and corruption. OSI Systems conducts due diligence on potential third parties and requires contractual agreements that expressly prohibit bribery. For the financial statement ending June 30, 2024, Grant Thornton LLP was the primary auditor, with other accounting firms collectively representing less than 5% of total audit hours. OSI reserves the right to audit supplier compliance with its Code of Conduct, with these audits conducted by OSI or an approved third party.

No War, No Weapons

In fiscal 2023, 59.5% of the company's revenue was derived from its security segment.

This segment provides security and inspection systems for high-security locations, including government buildings and critical infrastructure. The Optoelectronics segment manufactures components for dual-use technologies, such as laser-guided munitions, satellite navigation, and remote sensing, serving a diverse customer base that includes the defense sector.

Planet-Friendly Business

OSI Systems' global climate targets were validated by SBTi in November 2023, including a 30% reduction in Scope 3 emissions by 2032 from a 2021 baseline, and a 25% reduction in Scope 1 and 2 emissions by FY2030 from FY2022 levels.

Renewable energy consumption was 4.4% of total energy in 2023, an increase from 4.0% in 2022. The company aims for 50% of purchased electricity from renewable sources by 2030 at manufacturing and logistics facilities, with UK facilities currently at 100% renewable and North American facilities ranging from 25% to over 60%. The waste recycled rate was 70% in 2023, a decrease from 72% in 2022, with a target of 90% waste reuse, recycling, and recovery by FY2030. Three OSI buildings hold LEED certifications, including one LEED Gold certified facility. Over 50% of OSI companies are ISO 14001 certified, with a goal for all key manufacturing locations to be certified by 2030. The company has a five-year record of zero workplace fatalities and zero safety violations. OSI Global aims to achieve net-zero emissions, but no specific target year is mentioned.

Safe & Smart Tech

In 2023, OSI Systems invested $12.3 million in cybersecurity, which represents approximately 1.06% of its $1.16 billion revenue.

The company's Information Security Management System (ISMS) is ISO/IEC 27001 compliant, with the certification originally issued on October 6, 2022, and expiring on October 6, 2025. Manufacturing facilities in Hawthorne, Snoqualmie, Johor Bahru, Batam, and Hyderabad are certified to ISO 13485 for quality management. The company also complies with ISO 9001:2015 and FDA Medical Device Regulations. Employees are required to complete annual cybersecurity and data protection awareness training. In 2023, $6.7 million was invested in encryption technologies. The company retains personal data as long as necessary to fulfill outlined purposes or as required by law. OSI Systems maintains a global security operations center with real-time investigation and impact mitigation capabilities. Independent third-party cybersecurity auditors and testers are engaged annually to review the ISMS, and external cyber-penetration testing is conducted annually. The company's patient monitoring, cardiology, and remote monitoring systems comply with FDA regulatory requirements and HIPAA. It also complies with ITAR and EAR, spending $3.2 million on export control management in 2023.

Zero Waste & Sustainable Products

The company achieved an approximate 15% reduction in hazardous waste in FY24, adjusted for business growth, from a 2022 baseline.

OSI Systems reports no specific waste disposal violations, fines, or compliance issues in the provided articles. The company has a target to achieve zero operational waste to landfill by FY2030 and aims for 90% waste reuse, recycling, and recovery. It also has a target to reduce hazardous waste generation by 20% from a 2022 baseline. OSI Systems expects its suppliers to comply with environmental regulations, manage waste, air emissions, and wastewater discharges, and establish systems for waste management.