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