Climate Change Data

MaxLinear, Inc.

Climate Impact & Sustainability Data (2023, 2024)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Reduce carbon footprint
  • Socially responsible supply chain
  • Equity, diversity, and inclusion

Environmental Achievements

  • Purchasing 100% renewable energy for our facilities in California and elsewhere where available
  • Using key suppliers that focus on sustainability
  • Enhancing our offices with energy-saving improvements
  • Transitioning away from one-time-use plastics used in the office to sustainable reusable products

Social Achievements

  • Formed a Women in Engineering group in the United States to promote leadership skills and opportunities for female engineers and seek opportunities to recruit more female engineering graduates
  • Employee voluntary turnover rate was 7%

Governance Achievements

  • Board of directors and Nominating and Corporate Governance Committee oversees our environmental, social and governance directives

Climate Goals & Targets

Environmental Challenges

  • Reduce our carbon footprint
  • Maintain a socially responsible supply chain
  • Advance equity, diversity and inclusion
Mitigation Strategies
  • Monitoring our global environmental footprint, both directly and indirectly
  • Improving the power efficiency and thermal performance of our chips
  • Minimizing water consumption and waste
  • Promoting recycling of reusable materials
  • Assessing additional measures to further reduce our emissions
  • Aiming to have all manufacturing partners that are certified with ISO 14001 international standards for environmental management systems and plan to launch manufacturing partner audits in the future
  • Maintaining an anti-slavery policy, and a business partner labor standards policy which bars the use of forced or child labor and slavery and a conflict minerals policy governing the use and distribution of 3TG minerals
  • Conducting due diligence before allowing a potential supplier to become a preferred supplier
  • Increasing our hiring and retention of female and diverse talent including direct hires or interns from universities

Supply Chain Management

Responsible Procurement
  • Maintaining an anti-slavery policy, and a business partner labor standards policy which bars the use of forced or child labor and slavery and a conflict minerals policy governing the use and distribution of 3TG minerals
  • Conducting due diligence before allowing a potential supplier to become a preferred supplier

Climate-Related Risks & Opportunities

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Climate risk assessment
  • Greenhouse gas emissions
  • Socially responsible supply chain
  • Workforce diversity

Environmental Achievements

  • Purchasing 100% renewable energy for our facilities in California and elsewhere where available
  • Using key suppliers that focus on sustainability
  • Enhancing our offices with energy-saving improvements
  • Transitioning away from one-time-use plastics used in the office to sustainable reusable products
  • Engineers consistently focused on improving the power efficiency and thermal performance of our chips, minimizing water consumption and waste, promoting recycling of reusable materials

Social Achievements

  • Maintaining an anti-slavery policy and a business partner labor standards policy which bars the use of forced or child labor and slavery
  • Conducting due diligence before allowing a potential supplier to become a preferred supplier
  • Removing any suppliers that continue to fail to meet our business partner labor standards and conflict minerals policies
  • Participating in recycling of integrated circuits and boards
  • Global training and development program includes internal on-the-job training and a pilot training program including seminars, podcasts and recommended learnings
  • Corporate training program covering discrimination-free workplace, code of ethics and employee conduct, insider trading policy, global export controls and economic sanctions policy, global anti-bribery and anti-corruption policy, and anti-trust and competition law

Governance Achievements

  • Board of directors and Nominating and Corporate Governance Committee oversees corporate social responsibility and sustainability directives
  • Audit Committee oversees enterprise risk management, which includes an assessment of enterprise risks, including climate risks
  • Executive compensation structure aligns executive incentives with the long-term growth objectives of MaxLinear, including long-term share price appreciation

Climate Goals & Targets

Environmental Challenges

  • Assessing and mitigating climate risks
  • Reducing greenhouse gas emissions
  • Maintaining a socially responsible supply chain
  • intense and increasing competition
  • Global economic conditions, including high inflation or a potential recession
  • Cyclical nature of the semiconductor industry
  • Declining revenue and managing future revenue growth
  • Geopolitical conflicts and tensions
  • Export control and technology export restrictions
  • Increased tariffs
  • Reliance on a limited number of customers
  • Information technology failures and security breaches
  • Decreasing average selling prices
  • Delays in broadband market development
  • Substantial quarterly and annual fluctuations in operating results
  • Difficulty attracting and retaining qualified personnel
  • High interest rates
  • Compliance with governmental regulations related to privacy, data protection, and cybersecurity
  • Conformance to evolving industry standards
  • Supply chain disruptions
  • Security vulnerabilities in products
  • Use of open source software
  • Catastrophic loss to facilities
  • Impairment of goodwill and other intangible assets
  • Unanticipated changes in tax rates
  • Compliance with Section 404 of the Sarbanes-Oxley Act
Mitigation Strategies
  • Initial assessment of climate risks utilizing the Task Force on Climate-related Financial Disclosure (TCFD) Guidance
  • Measures to reduce greenhouse gas emissions (renewable energy, energy-saving improvements, sustainable products)
  • Monitoring the practices of foundry partners and suppliers in assessing environmental risks
  • Commitment to a socially responsible supply chain to reduce the risk of human rights violations and the use of conflict minerals
  • Workforce reductions to align operational needs with changes in macroeconomic conditions and demand
  • Cost reduction measures
  • Investing in new product development
  • Expanding global presence
  • Attracting and retaining top talent
  • Implementing and improving administrative, financial, and operational systems
  • Enhancing information technology support
  • Developing and introducing new products and product enhancements
  • Continuously reducing costs
  • Implementing additional measures to prevent recurrence of potential EAR violations
  • Comprehensive voluntary self-disclosure to BIS
  • Policies and procedures for assessing, identifying, and managing material risk from cybersecurity threats
  • Quarterly risk assessments
  • Regular cybersecurity training
  • Cybersecurity Operations Control center
  • Incident Response Plan
  • Third-party security penetration testing and cyber tabletop exercises
  • Third-party security monitoring services
  • Quarterly vulnerability scans
  • Cybersecurity risk insurance policy
  • Cash conservation measures
  • Monitoring the impact of high interest rates

Supply Chain Management

Responsible Procurement
  • Monitoring practices of foundry partners and suppliers
  • Socially responsible supply chain to reduce risk of human rights violations and use of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Supply chain disruptions

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001:2015