Climate Change Data

Environmental Metrics

ESG Focus Areas

• Talent Management and Employee Engagement
• Climate Change and GHG Emissions
• Corporate Governance and Ethics
• Cybersecurity and Privacy
• Environmental and Social Supply Chain Management

Environmental Achievements

• Achieved carbon neutrality in 2019

Social Achievements

• Hosted 697 interns in 2019
• 84% employee participation in the engagement survey
• Implemented a multi-year plan to attract and advance women in technology
• $3.3M total charitable giving
• 12,933+ volunteer hours

Governance Achievements

• 100% of employees completed annual ethics and compliance courses
• All contractors with system access completed Code of Ethics training
• Appointed a Chief Security Officer

Climate Goals & Targets

Environmental Challenges

• Addressing gender representation disparity in the technology industry
• Managing supply chain risks
• Maintaining adequate cybersecurity posture in a constantly evolving threat landscape

Mitigation Strategies

• Implemented a multi-year plan to attract and advance women in technology
• Improved supplier vetting processes, collecting more information about suppliers, including certifications and GHG emissions
• Adopted the NIST Cybersecurity Framework, implemented an Incident Response Program, and appointed a Chief Security Officer

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on RBA Code of Conduct
• Enhanced vetting of new suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Human Capital Management
• Innovation
• Cybersecurity
• Product Security
• Market Access
• Crisis Management and Business Continuity
• Climate Change and GHG Emissions
• Corporate Governance
• Ethics
• Supply Chain
• Public Policy
• Social Impact

Environmental Achievements

• Achieved carbon neutrality for the second consecutive year
• Set goal to reduce direct GHG emissions by 25% by 2024
• >117,000 pounds of e-waste processed responsibly

Social Achievements

• Employee engagement score of 79 (above industry benchmark of 74)
• Donated $3.6 million to non-profit organizations globally
• Increased representation of women on the Board to 33%
• Attained external hiring rate of 27% women
• Attained early career hiring rate of 29%
• Hired more than 500 interns, with 31% becoming full-time employees

Governance Achievements

• Amended Corporate Governance Guidelines and updated committee charters
• Increased transparency of I&D efforts and metrics
• 98% of employees completed ethics and compliance training

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19
• Global pandemic impacting vulnerable populations
• Need to expand quantification of Scope 3 emissions

Mitigation Strategies

• Activated Business Continuity Program and Crisis Management response teams
• Donated more than $1 million in COVID-19 relief
• Launched a special 2-to-1 matching gift campaign
• Developed a more complete quantification of Scope 3 emissions in 2021

Supply Chain Management

Supplier Audits: 181 suppliers assessed through Conflict Minerals Due Diligence process

Responsible Procurement

• Supplier Code of Conduct (based on RBA Code of Conduct)
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Software and Services Standard

Certifications: CarbonNeutral®

Sustainable Products & Innovation

• DSO.ai™ (Design Space Optimization AI)
• VC SpyGlass™ RTL platform
• Low Power Platform

Awards & Recognition

• 2020 World Electronics Achievement Awards: Innovative Product of the Year for DSO.ai™ and Most Promising New Chip Life Technology for VC SpyGlass™ RTL platform

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Corporate Social Responsibility (CSR)

Environmental Achievements

• Reduced Scope 1 and 2 emissions by achieving CarbonNeutral® certification for the second consecutive year.
• Achieved LEED Gold certification for three new buildings at Northern California headquarters, projecting 20% energy savings.
• Participated in a virtual power purchase agreement for US-generated wind energy.

Social Achievements

• Launched Global Green Team program to engage employees in sustainability initiatives.
• Increased Synopsys Foundation donations to environmental organizations by 138%.

Governance Achievements

• Established a science-based GHG emissions goal to reduce total scope 1 and 2 emissions by 25% by 2024 (2018 baseline).
• Board-level oversight of climate-related issues through the Corporate Governance and Nominating Committee.

Climate Goals & Targets

Environmental Challenges

• Identifying and assessing climate-related risks and opportunities.
• Allocating Scope 3 emissions to customers.
• Managing business continuity risks due to physical changes (severe weather, flooding, wildfire).

Mitigation Strategies

• Planning to introduce a climate-related risk management process in the next two years.
• Engaging with suppliers on GHG emissions as part of vendor onboarding.
• Joining the Renewable Energy Buyers Alliance (REBA) to collaborate on climate action strategies.

Supply Chain Management

Responsible Procurement

• Engaging with suppliers on GHG emissions during vendor onboarding.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Flooding
• Wildfire

Transition Risks

• Regulatory changes
• Increased energy costs due to carbon pricing

Opportunities

• Energy efficiency improvements
• Increased demand for low-power products
• Enhanced stakeholder relationships

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, Science Based Targets initiative (partially)

Certifications: CarbonNeutral®, LEED

Sustainable Products & Innovation

• Low-power design and verification technologies
• RTL Architect product

Awards & Recognition

• 2018 World Electronic Achievement Award (WEAA)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Inclusion and Diversity
• Social Impact
• Supply Chain
• Corporate Governance
• Cybersecurity and Data Privacy

Environmental Achievements

• Achieved CarbonNeutral® company certification for the fourth consecutive year
• Began sourcing 40,000 megawatt hours (MWhs) of renewable energy per year for North American offices and data centers
• Added language to data center provider agreements mandating significant renewable energy commitments
• Closed 10 inefficient on-premise data centers
• Customers using Design Space Optimization AI (DSO.ai) achieved up to a 30% power consumption reduction in chip design

Social Achievements

• Increased overall representation of women in senior roles for five straight years
• Increased Black, Latinx, and Indigenous (BLI) representation in the U.S. workforce by approximately 30% from fiscal 2021
• Conducted a three-week Season of Service volunteer program with 52 projects worldwide
• Provided $4.7M in total charitable giving

Governance Achievements

• Obtained ISO 22301 Business Continuity Management Systems certification
• Launched a new 24/7 Security Operations Center (SOC)
• Updated and completed testing on 104 business continuity plans
• Received Conflict Minerals Reporting Template (CMRT) responses from approximately 92% of hardware suppliers

Climate Goals & Targets

Environmental Challenges

• Increased undesired employee turnover (6.9%)
• Greater than projected business growth impacting emissions reduction goals
• Change in electricity fuel mix for California data center due to water shortages and wildfires
• Complex cyberthreat landscape

Mitigation Strategies

• Investments in I&D initiatives to improve retention
• Submitted new, more ambitious GHG emissions reduction goals to SBTi
• Expanded GHG inventory to include additional Scope 3 emissions categories
• Investments in cybersecurity talent and technology, including a zero-trust architecture approach

Supply Chain Management

Supplier Audits: 92% coverage of hardware suppliers

Responsible Procurement

• Supplier Code of Conduct
• ESG criteria for indirect procurement RFP process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, wildfires, flooding

Transition Risks

• Carbon pricing, regulatory changes, stakeholder expectations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, UN SDGs

Certifications: CarbonNeutral®, ISO 22301

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 13
• Goal 16

Synopsys initiatives contribute to these goals through various programs and investments in education, gender equality, renewable energy, economic growth, innovation, climate action, and anti-corruption efforts.

Sustainable Products & Innovation

• DSO.ai, ZeBu Empower, ARC NPX6 and NPX6FS NPUs

Awards & Recognition

• Gartner Magic Quadrant™ for Application Security Testing Leader (6 consecutive years)
• Gartner Critical Capabilities for Application Security Testing highest scores across five use cases
• TSMC Open Innovation Platform (OIP) Partner of the Year Awards

Environmental Metrics

ESG Focus Areas

• Human capital management
• Innovation
• Cybersecurity and data privacy
• Corporate governance and ethics
• Climate change and GHG emissions
• Supply chain management

Environmental Achievements

• Validation of greenhouse gas (GHG) emissions reduction targets by the Science Based Targets initiative (SBTi).
• Achieved CarbonNeutral® company certification across our global operations for the fifth consecutive year.
• Approximately 62,469 GJ reduction in energy consumption.
• Approximately 792 MTCO2e of GHG emissions were reduced as a direct result of reduction initiatives of Scope 1 and 2 emissions.

Social Achievements

• 89% of employees recommending Synopsys as a great place to work.
• Ranked 13th on Comparably’s annual Best Global Company Culture list.
• 86% of managers completed Inclusive Leader training.

Governance Achievements

• Introduced a completely new Code of Ethics and Business Conduct.
• Completed a control assessment as part of our ISO 22301 certification.

Climate Goals & Targets

Environmental Challenges

• Significant operational growth with a 58% increase in revenue, a 46% increase in employee base, and a 20% overall increase in electricity consumption.
• Acute physical risks such as severe storms may cause business disruptions, impacting our hardware and digital supply chain operations.
• Disruption to supplier operations can result in delays to production.

Mitigation Strategies

• Developed a management structure and initiatives to enable our teams, drive improvements, and report on progress toward our targets.
• Investing in renewable energy, including a long-term VPPA.
• Energy efficiency projects including LEED-certified office space.
• Maintaining buffer stock for component parts and finished goods.
• Maintaining two sources for parts and contract manufacturers in different geographies.

Supply Chain Management

Supplier Audits: 1 facility audit through the RBA Validated Assessment Program (VAP) in France

Responsible Procurement

• Supplier Code of Conduct mirroring the Responsible Business Alliance (RBA) Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increasing frequency/severity of climate-driven events
• Changing precipitation patterns and water scarcity

Transition Risks

• Regulatory/Legal requirements
• Policy changes
• Reputational risks

Opportunities

• Resilience
• Products/Services/Market Drivers for the low-carbon economy
• Resource Efficiency

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, UN SDGs

Certifications: CarbonNeutral, ISO 22301

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 13
• Goal 16

Sustainable Products & Innovation

• Energy-efficient SoCs
• Solutions that cut energy use, water use, and waste in semiconductor manufacturing

Awards & Recognition

• CDP A- leadership score

Environmental Metrics

ESG Focus Areas

• Education
• Community
• Environment

Environmental Achievements

• Greening initiatives covered 14 acres of land and public spaces
• Invested in harnessing solar energy, benefitting 3 schools in cost cutting
• Embracing Renewable Energy through Solar Panels (Lotus Petal Foundation) reducing approximately 71,064 pounds (32,234 kilograms) of CO2 emissions annually

Social Achievements

• Supported 5200 people with our investment in affordable preventive healthcare
• Digitalization of schools aided 7976 students, with SMART Class and Computer Labs
• Upskilling programs catered to 150 PwD to enhance their employability
• Physical and occupational therapies benefitted 168 children
• Entrepreneurship Development of LGBTQ+ Community Members impacted 20 individuals
• Hope in a Cup cafe established, providing employment for LGBTQ+ community members

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Contributing to the United Nations Sustainable Goals (SDGs)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Project in DEI category at the SMX CSR Leadership Summit (Hope in a Cup)
• Recognition by Business Concept for impactful initiatives on Education
• Recognition for Promoting Inclusive Livelihood Solution at the Synergy and Sustainability Symposium
• Recognition at the first Telangana Trans Swabhimana Awards