Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Human Resources Management, Human Rights
• CSR Supply Chain Management
• Corporate Citizenship Activities
• Occupational Health and Safety
• Business Ethics

Environmental Achievements

• In 2012, Infineon’s frontend sites worldwide consumed approximately 33 percent less water to manufacture one square centimeter of wafer than the global average reported in a survey conducted by the World Semiconductor Council (WSC).
• In the 2012 calendar year, Infineon used 42 percent less electricity to manufacture one square centimeter silicon wafer at its frontend sites than the worldwide average reported by WSC.
• Our frontend production sites generated approximately 50 percent less waste per square centimeter manufactured wafer than the world-wide average reported by the WSC.
• Our PFC emissions, calculated in CO₂ equivalents, were 7 percent below the previous year’s value.

Social Achievements

• 32,460 hours of occupational safety education and training of occupational safety and fire prevention experts were organized worldwide.
• 24,200 employees worldwide received training on the Business Conduct Guidelines (code of conduct) and other compliance topics, such as anti-trust.
• Infineon carried out an analysis of its supply chain already in 2010. Our supply chain was again assessed in 2013 with regard to the non-use of conflict minerals.

Governance Achievements

• CSR chapter in Annual Report received independent limited assurance verification
• Implementation of a new energy management system and integration thereof into IMPRES (Infineon Integrated Management Program for Environment, Energy, Safety and Health)
• All European frontend sites as well as our corporate headquarters were certified according to the ISO 50001 standard

Climate Goals & Targets

Environmental Challenges

• Water shortage in areas where Infineon’s two Malaysian production plants are located.
• Ever greater complexity of products, which in principle calls for greater use of PFCs.
• Complex processes and a large number of influencing factors have to be considered when drawing up an entity’s carbon footprint (CO₂ balance).

Mitigation Strategies

• Infineon will continue implementing different measures to reduce water consumption at both sites.
• Infineon has made an early start in reducing the use of PFCs to a minimum. All voluntary targets have been achieved up to date.
• Infineon has developed its own approach for calculating CO₂ emissions which was further refined during the 2013 fiscal year.

Supply Chain Management

Responsible Procurement

• Principles of Purchasing were updated
• Conflict minerals’ supply chain analysis was updated

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 3.1, UN Global Compact

Certifications: ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Awards & Recognition

• Dow Jones Sustainability Index
• RobecoSAM Sustainability Award

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Mobility
• Security
• Digitalization
• Internet of Things (IoT)
• Sustainable products
• Responsible manufacturing
• Human rights
• Diversity and equal opportunity
• Corporate citizenship
• Business ethics
• Labor relations
• Environmental sustainability
• Resource efficiency
• Water management
• Waste management
• Energy efficiency and climate protection
• Greenhouse gas emissions
• Supply chain responsibility
• Conflict minerals

Environmental Achievements

• Specific water consumption below 8.5 liters per square centimeter manufactured wafer.
• Specific waste generation below 27.5 grams per square centimeter manufactured wafer.
• Recovered 344.64 tons of PGMEA solvent through waste distillation and reused it in manufacturing.
• Achieved energy savings of 23.1 gigawatt hours.
• PFC-relevant emissions below 2.2 tons CO2 equivalents per square meter manufactured wafer surface.
• 66 percent of waste generated was recycled.
• Frontend sites generated approximately 65 percent less waste per square centimeter manufactured wafer compared to the WSC global average.
• Frontend sites consumed approximately 32 percent less water to manufacture a square centimeter wafer than the global average of the WSC.
• Frontend sites used approximately 52 percent less electricity to manufacture one square centimeter wafer compared to the WSC global average.

Social Achievements

• Increased the share of women in middle and senior management to 15.5 percent (from 14.8 percent).
• Achieved 81 percent agreement rate to the statement “All in all, Infineon is a very good employer.”
• Approximately 81.8 percent of managers conducted leadership dialogs with employees.
• 4,698 new hires worldwide.
• Invested €18.7 million in staff further training.
• 704,187 total training hours for staff.

Governance Achievements

• Independent corporate auditing firm confirmed the appropriateness, implementation, and effectiveness of the Group-wide Compliance Management System.
• All Infineon products are DRC conflict-free.

Climate Goals & Targets

Environmental Challenges

• Increasing product complexity leading to increased demands for greenhouse gases.
• Fluctuating production impacting waste generation and disposal methods.
• Increasing product complexity leading to increased water and raw material use.
• Demographic change impacting age structure of workforce.
• Maintaining a DRC conflict-free supply chain due to dynamic product portfolio and supplier topology changes.

Mitigation Strategies

• Continuous process optimization, efficient manufacturing methods, intelligent abatement concepts, and alternative gases.
• Classification and separation of waste, safe disposal methods, and recycling.
• Regular exchange between sites to identify and implement potential improvements in water and waste management.
• Steps in work organization, qualification, knowledge transfer, talent management, health management, and corporate culture.
• Standardized process based on OECD Due Diligence Guidance, Conflict Minerals Policy, and Supplier Code for Responsible Sourcing.

Supply Chain Management

Supplier Audits: Approximately 375 suppliers (75% of purchasing volume) reevaluated annually.

Responsible Procurement

• Principles of Purchasing based on UN Global Compact, ILO principles, and Infineon Business Conduct Guidelines.

Climate-Related Risks & Opportunities

Transition Risks

• Changes in environmental legislation and government regulations.

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• HybridPACK™ power modules for electric vehicles
• Semiconductors for energy-efficient applications (industrial drives, servers, lighting, photovoltaics, wind energy, mobile phone chargers, induction cookers).

Awards & Recognition

• Hyundai-Kia Motors Company Partner of the Year 2018

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Manufacturing
• Business Ethics
• Corporate Citizenship
• Supply Chain Responsibility
• Human Rights
• Labor Relations

Environmental Achievements

• Scope 1 and 2 emissions were 14.2 percent below the emissions of the base year 2019.
• Achieved energy savings of more than 38 gigawatt hours.
• Additive reductions of more than 37,000 tons of CO2 equivalents through PFC abatement systems.
• Specific water consumption was below 8.5 liters per square centimeter manufactured wafer.
• Specific waste generation was below 27.5 grams per square centimeter manufactured wafer.

Social Achievements

• Proportion of women in middle and senior management remained stable at 16 percent.
• Achieved 83 percent employee satisfaction.
• 75.7 percent of managers conducted leadership dialogues with employees.
• Injury Rate remained constant at 0.35.

Governance Achievements

• New compensation system for the Management Board (including ESG targets) was approved.
• Unified compliance organization established, with compliance officers appointed at former Cypress locations.
• 100 percent of potential suppliers of conflict minerals identified and evaluated; all Infineon products confirmed as DRC conflict-free.
• Due diligence assessment conducted for 100 percent of suppliers of products containing cobalt.

Climate Goals & Targets

Environmental Challenges

• Increasing product complexity leading to rising demand for greenhouse gases.
• Fluctuating production impacting waste generation and disposal.
• Potential future water scarcity at some sites.
• Dynamic development of product portfolio and supplier topology, along with increasing customer-specific requirements, impacting conflict mineral and cobalt assessments.

Mitigation Strategies

• Continuously optimizing processes through more efficient production methods and exhaust air abatement.
• Using alternative gases with higher utilization rates and lower global warming potential.
• Implementing effective water recycling measures.
• Standardized process based on OECD Due Diligence Guidance for responsible supply chains.
• Regular communication between sites to identify and implement potential improvements.

Supply Chain Management

Supplier Audits: Approximately 75% of procurement volume re-evaluated annually.

Responsible Procurement

• Supplier Code of Conduct (based on UN Global Compact Principles and ILO fundamental principles).

Climate-Related Risks & Opportunities

Transition Risks

• Changes in environmental legislation

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 50001 (at largest European manufacturing sites and headquarters)

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Sustainable Products & Innovation

• CoolGaN™

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Supply Chain
• Data Security & Privacy
• Circular Economy

Environmental Achievements

• Reduced greenhouse gas emissions by 21% compared to the baseline year 2019.
• Increased the share of renewable energy to 70%.

Social Achievements

• Launched various initiatives to promote diversity and inclusion.
• Improved employee satisfaction scores.

Governance Achievements

• Strengthened the company's commitment to ethical business conduct.
• Improved board diversity.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on the supply chain.
• Geopolitical uncertainties and supply chain disruptions.
• Shortage of skilled labor.

Mitigation Strategies

• Investing in renewable energy and energy efficiency measures.
• Diversifying the supply chain and implementing risk management strategies.
• Collaborating with educational institutions and training programs to develop talent.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct, Supplier Sustainability Requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity and Equal Opportunity
• Business Ethics
• Human Rights
• Supply Chain Responsibility
• Corporate Citizenship
• Resource Efficiency

Environmental Achievements

• Reduced scope 1 and scope 2 emissions by 66.3% compared to 2019.
• Achieved over 83% reduction in potential PFC emissions.
• Switched to green electricity at sites in Europe, North America, Kulim (Malaysia), and Melaka (Malaysia).
• Recycled and reused 18,195,139 cubic meters of production water and wastewater (32% recycling rate).
• Recovered and reused 900 tons of solvents.

Social Achievements

• Increased the percentage of women in middle and senior management positions to 17.9%.
• Achieved 83% overall employee satisfaction.
• Implemented various corporate citizenship activities in 18 countries.

Governance Achievements

• Received an AAA rating in MSCI ESG Ratings.
• Awarded EcoVadis Platinum medal for the third consecutive year.
• Listed in the Dow Jones Sustainability™ World Index for the fourteenth consecutive year.
• Included in the Morningstar Sustainalytics ESG Top-Rated Companies List 2024.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Limited potential for own green electricity production at sites.
• Legal uncertainties in the interpretation of the EU Taxonomy.
• Fluctuating production levels impacting waste generation and treatment.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implementing site-specific measures for infrastructure and manufacturing to increase energy efficiency and water recycling.
• Working with industry associations to clarify legal uncertainties in the EU Taxonomy.
• Favoring waste recycling over waste disposal.

Supply Chain Management

Supplier Audits: More than 390 strategic suppliers (70% of procurement volume) re-evaluated in 2024; at least 10 risk-based audits planned for 2025.

Responsible Procurement

• Supplier Code of Conduct
• Infineon Conflict Minerals Policy
• Sustainability self-assessment via IntegrityNext platform
• Encouraging supplier certifications to international standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy technologies

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 50001 (at major European manufacturing sites and headquarters)

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Infineon's initiatives contribute to these goals through various programs and product offerings.

Sustainable Products & Innovation

• Next-generation silicon carbide technology
• 8 kW and 12 kW power supply units for AI data centers

Awards & Recognition

• EcoVadis Platinum medal
• Inclusion in Dow Jones Sustainability™ World Index

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Diversity and equal opportunity
• Responsible manufacturing
• Business ethics
• Labor relations
• Corporate citizenship
• Human rights
• Supply chain sustainability
• Water management
• Waste management

Environmental Achievements

• Reduced scope 1 and scope 2 emissions by 66.3% compared to 2019.
• Achieved 89% renewable energy share in total electricity consumption.
• Recycled and reused 18,195,139 cubic meters of production water and wastewater (32% recycling rate).
• Achieved a 76.13% overall recycling rate for waste.
• Recovered and reused 900 tons of solvents in manufacturing.

Social Achievements

• Increased the proportion of women in middle and senior management positions to 17.9%.
• Achieved 83% overall employee satisfaction.
• Conducted Leadership Dialogs with 84.1% of managers.

Governance Achievements

• Implemented a new digital platform for non-financial reporting, reducing manual workload by more than 50%.
• Restructured the risk assessment process, linking it with self-assessment for all Group companies and locations.
• Conducted a human rights risk analysis at 100% of IMPRES certified sites.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Fluctuations in energy prices
• Limited availability of natural resources
• Legal uncertainties in the interpretation of the EU Taxonomy
• Potential risks of water stress at some sites

Mitigation Strategies

• Integrated supplier management with sustainability requirements.
• Energy efficiency programs and switch to green electricity.
• Efficient resource management through IMPRES.
• Collaboration with industry associations to clarify EU Taxonomy.
• Effective water recycling measures at high-risk sites.

Supply Chain Management

Supplier Audits: More than 390 strategic suppliers re-evaluated (70% of procurement volume), at least 10 on-site audits planned for 2025.

Responsible Procurement

• Supplier Code of Conduct based on UN Global Compact, RBA standards, and ILO principles.
• Contractual obligations for main suppliers to uphold sustainability commitments.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy technologies

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 50001 (at largest European manufacturing sites and headquarters)

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Not disclosed

Infineon reports on its contribution to the UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Power supply units (PSUs) for AI data centers
• Semiconductors for renewable energy technologies and electric vehicles

Awards & Recognition

• Not disclosed