Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Ethical Business

Environmental Achievements

• 8% reduction in water consumption per production unit
• 12% reduction in energy consumption per production unit
• Elimination of 500,000 plastic cups annually at Bernin facility
• 52% of non-hazardous waste recycled at Bernin facility

Social Achievements

• Workplace accident frequency rate reduced to 3 (from 5.26)
• Employee satisfaction with quality of life at workplace: 67.12/100 (+2.5%)
• 7 new collective agreements signed
• 16% of Group employees received a promotion

Governance Achievements

• Separation of Chairman and CEO roles
• Board of Directors with 41.67% women and 41.67% independent directors
• Implementation of anti-corruption training for employees

Climate Goals & Targets

Environmental Challenges

• Customer concentration (dependence on top 5 customers)
• Market and innovation (cyclical nature of semiconductor industry, technological obsolescence)
• Competition (intense competition, potential for new competitors)
• Geopolitics and global economy (impact of protectionist policies, exchange rate fluctuations)
• Price fluctuations (raw material prices, competition)
• Production capacity (meeting high demand)
• Supply structure with bulk suppliers (long-term agreements)
• Limited number of suppliers of raw materials
• Production shutdown (risk of downtime)
• Intellectual property protection
• IT and data security
• Global pandemic (Covid-19)
• Integration of employees from acquired entities

Mitigation Strategies

• Product diversification
• R&D investment (11.2% of revenue)
• Partnerships with customers and research centers
• Increased production capacity
• Flexible contracts with bulk suppliers
• Multi-sourcing of critical components
• Business continuity plan
• Patent protection
• Information security policy
• Covid-19 crisis management plan
• Integration plans for acquired entities

Supply Chain Management

Responsible Procurement

• Quality Policy for major suppliers and subcontractors
• Conflict Minerals Regulation compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, ISO 14001, ISO 45001, ISO 50001

Certifications: ISO 14001, ISO 45001, ISO 50001, IATF

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 5
• Goal 7
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16

Awards & Recognition

• Grésivaudan Region Coup de Coeur in the Auvergne-Rhône-Alpes Mobility Challenge

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stress
• Biodiversity
• Attractiveness and Development of Employees
• Health and Safety of Employees
• Quality of Life at Work
• Diversity and Inclusion
• Responsible Supply Chain
• Community Engagement
• Ethics
• Cybersecurity

Environmental Achievements

• 29% reduction in energy consumption per unit of production in 5 years
• 14% reduction in water consumption per unit of production in 5 years
• 564 ktCO2e of emissions avoided for RF-SOI and Photonics-SOI products sold in 2020
• Bernin plant's electricity is 100% renewable since January 1, 2021

Social Achievements

• Pioneering professional equality agreement signed with unions, addressing gender and LGBTQIA+ issues
• 444 hires during the year, including more than 100 young people under 26 in France
• 5-point increase in the perception of the quality of life at work over the year (72/100)
• Dual recognition for employee shareholding policy
• Low turnover rate (3.8%)

Governance Achievements

• CEO's variable compensation partly linked to sustainable development criteria
• Implementation of a Code of Good Conduct and e-learning modules on ethics and anti-corruption
• Authorized Economic Operator (AEO) status renewed

Climate Goals & Targets

Environmental Challenges

• Market concentration
• Competition
• Technological obsolescence
• Limited number of raw material suppliers
• Production capacity constraints
• Supply chain planning
• Production shutdowns
• Exchange rate fluctuations
• Data security and cyber threats
• Intellectual property protection
• Global pandemics (COVID-19)
• Attracting and retaining talent
• Climate change
• Responsible supply chain
• Health and safety
• Cybersecurity

Mitigation Strategies

• Product diversification and market expansion strategies
• Continuous R&D investment and strategic collaborations
• Multi-sourcing policies for raw materials
• Capacity expansion plans in France, Singapore, Belgium, and China
• Business continuity plans
• Hedging strategies for exchange rate risks
• Robust cybersecurity measures and insurance
• Strong intellectual property protection strategies
• Business continuity plan for pandemics
• Elevate program to attract talent
• SBTi commitment for greenhouse gas reduction
• Supplier Quality Policy and due diligence on conflict minerals
• Robust health and safety management system and Safe program
• Information systems security policy and employee awareness programs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Quality Policy (ethics, human rights, environmental protection)
• Conflict Minerals Policy
• Green Partner policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core Compliance Option

Certifications: ISO 9001, IATF, AEO, ISO 14001 (Bernin), ISO 45001 (Bernin), ISO 50001 (Bernin)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• 3
• 5
• 6
• 8
• 9
• 10
• 11
• 12
• 13
• 15
• 16
• 17

Soitec's initiatives contribute to these goals through various programs and policies

Sustainable Products & Innovation

• RF-SOI
• Photonics-SOI
• POI
• GaN
• SiC

Awards & Recognition

• L’Usine Nouvelle’s Plant of the Year
• BFM Business’ Digital Acceleration Grand Prix
• Grand Prix de l’Actionnariat Salarié
• C&B Trophy
• Solar Impulse Efficient Solution label

Environmental Metrics

ESG Focus Areas

• Sustainable Innovation
• Climate Change
• Water
• Biodiversity
• Attracting and Developing Talent
• Diversity and Inclusion
• Quality of Life at Work
• Health and Safety
• Responsible Supply Chain
• Communities
• Ethics

Environmental Achievements

• 41% reduction in energy consumption per unit of production since fiscal year 2015-2016
• 25% reduction in water consumption per unit of production since fiscal year 2015-2016
• 16.5% reduction in energy consumption per unit of production between 2021 and 2022
• 12.7% reduction in water consumption per unit of production versus fiscal year 2020-2021
• 75% reduction in greenhouse gas emissions when manufacturing SmartSiCTM substrates compared with traditional silicon carbide substrates
• 1,144 ktCO2eq. in greenhouse gas emissions avoided through the use of our products
• Creation of a 1,700 sq.m. area dedicated entirely to fauna and flora on our Bernin site

Social Achievements

• 582 hires in fiscal year 2021-2022
• 17.1% of employees promoted internally
• Quality of life at work score: 72/100
• Implementation of our Safe Culture program
• Communication campaign to fight against harassment and gender-based violence
• Winner of the SEMI Industry Leader in Diversity and Inclusion Award
• 195 young people under 26 hired during the year

Governance Achievements

• Creation of an ESG Committee within the Board of Directors
• Correlate the variable compensation paid to our employees with sustainability criteria
• 100% of our strategic suppliers have signed the Supplier Quality Policy
• Signing of the French Charter for Responsible Supplier Relations and Purchasing
• 70% of employees have completed the e-learning module on the Code of Good Conduct

Climate Goals & Targets

Environmental Challenges

• Strong growth leading to increased greenhouse gas emissions
• Difficulty sourcing renewable energy in Singapore
• Global job market tension and difficulty filling recruitment needs, especially for technical roles
• Historically lower proportion of women in the manufacturing industry

Mitigation Strategies

• Implementation of a Climate Plan with five pillars to reduce greenhouse gas emissions
• Investing in energy-efficient industrial equipment and optimizing industrial processes
• Increasing the share of carbon-free electricity consumed at Pasir Ris site by 2024
• Prioritizing sea freight over air freight
• Engaging suppliers in low-carbon approach
• Various initiatives to increase the proportion of women at all levels of the organization
• Creation of upskilling courses for production operators
• Implementation of Safe Culture program

Supply Chain Management

Supplier Audits: 100% of strategic suppliers have signed the Supplier Quality Policy

Responsible Procurement

• Supplier Quality Policy
• RBA Code of Conduct
• French Charter for Responsible Supplier Relations and Purchasing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi

Certifications: ISO 14001, ISO 50001, ISO 45001, IATF

Sustainable Products & Innovation

• SmartSiCTM
• FD-SOI
• RF-SOI
• Photonics-SOI

Awards & Recognition

• SEMI Industry Leader in Diversity and Inclusion Award
• Humpact prize

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Biodiversity
• Diversity and Inclusion
• Health and Safety
• Ethics
• Responsible Supply Chain
• Communities

Environmental Achievements

• Reduced energy consumption per unit of production by 17% between 2021 and 2022
• 100% of Bernin site electricity supplied by low-carbon energy since January 2021
• 900+ solar panels installed at Pasir Ris site in FY23
• Avoided ~1,200 ktCO2eq. emissions through the use of 3 products
• -37% reduction on Scope 1 & 2 emissions vs. 2020
• -51% reduction for Scope 3 emissions per million Euros added value vs. 2020
• Achieved a -31% reduction in water consumption per cm2 of manufactured wafer vs. FY21 baseline (2 years ahead of target)
• Achieved 100% water reuse in Bernin in FY23 (ahead of target)

Social Achievements

• 72/100 quality of life at work score in FY22
• 17% of eligible employees promoted internally in FY22
• Top 10 European semiconductor company for employee engagement on Social Networks
• Won SEMI Industry Leader in Diversity and Inclusion Award in 2022
• Achieved 25% women in ExCom in FY23 (2 years ahead of target)
• Launched women’s employee resource group in 2023
• 195 under 26 hired in 2022
• Strengthened apprenticeship program in France and launched a new program in Singapore

Governance Achievements

• Established governance rules in line with the AFEP-MEDEF Corporate Governance Code
• Created an ESG Committee within the Board of Directors in 2022
• 58% of independent directors and 42% of women directors on the Board
• CEO variable compensation and employee free share plans include ESG criteria
• Developed a compliance program with mandatory antitrust and anti-corruption training
• 100% of strategic suppliers signed the Supplier Quality Policy

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions
• Reducing water consumption
• Increasing the proportion of women in senior executive positions

Mitigation Strategies

• Decarbonation Program
• Consumption control plan (ISO 14001)
• Increasing recycling rates and wastewater reuse
• Pipeline development strategy to attract and retain highly skilled individuals
• Pioneering collective agreement with unions on professional equality
• Implementation of specific Group policies and trainings on compliance

Supply Chain Management

Responsible Procurement

• ESG and sustainability commitments contractually bound to suppliers
• Suppliers strongly encouraged to obtain ISO 45001, ISO 14001, and ISO 50001 certifications

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AFEP-MEDEF Corporate Governance Code, SBTi

Certifications: ISO 14001, ISO 45001, ISO 50001

Sustainable Products & Innovation

• SmartSiC™
• FD-SOI
• RF-SOI
• Photonics-SOI

Awards & Recognition

• SEMI Industry Leader in Diversity and Inclusion Award (2022)
• Grand Prix Employment (2021)