NVE Corporation

Climate Impact & Sustainability Data (2020, 2022, 2023)

Compliance with environmental laws and regulations (potential expenses related to emission abatement or remediation)
COVID-19 pandemic impacting global economic activity, customer order delays/cancellations, supply chain disruptions
Risks related to operating in foreign countries (economic/political instability, acts of God, public health crises, etc.)
Potential loss of supply from key single-source wafer suppliers
Potential loss of supply of critical chemicals or supplies
Potential loss of supply from packaging vendors
Risks inherent in doing business in foreign countries
Potential inability to enforce intellectual property rights
Potential inability to attract and retain highly qualified employees
Risks related to cybersecurity events or information technology disruptions
Potential losses on marketable securities

Maintaining inventory of critical wafers and chemicals
Identifying and qualifying alternate suppliers
Maintaining policies and procedures for mitigation of information technology risks
Maintaining data backups, backup hardware, and some redundant systems

Compliance with environmental laws and regulations
Supply chain disruptions due to COVID-19 pandemic and geopolitical factors (Russia-Ukraine conflict, China lockdowns)
Shortages of raw materials and equipment
Risks related to operating in foreign countries
Cyber security threats
Potential losses on marketable securities

Maintaining inventory of critical wafers and chemicals
Identifying and qualifying alternate suppliers
Increasing work in process to mitigate longer vendor lead-times
Maintaining policies and procedures for the mitigation of information technology risks
Maintaining data backups, backup hardware, and some redundant systems

Significantly increased average pay and fringe benefit expenditures to attract, retain, and motivate top-performing employees.

Tight labor market, competition for employees, and wage inflation.
Loss of supply from key single-source wafer suppliers.
Loss of supply of critical chemicals or supplies.
Loss of supply from packaging vendors.
Competition from other companies.
Failure to meet stringent customer requirements.
Inability to renew customer agreements.
Changes in tax law, tax rates, or exposure to additional income tax liabilities.
Product liability claims.
Inability to maintain important certifications.
Potential liability for use of products in medical devices.
Failure of critical production equipment.
Risks inherent in doing business in foreign countries.
Impacts of public health crises.
Risks associated with the availability of natural resources and energy.
Cybersecurity events or information technology disruptions.
Losses on marketable securities.
Inability to enforce intellectual property rights.
Uncertain economic environment in the industries we serve.
Litigation risks.

Significantly increased wages to remain competitive and attract new workers.
Maintaining inventory of some critical wafers.
Maintaining inventory of critical chemicals and materials.
Having alternate vendors or potential alternate vendors for the majority of our products.
Competing based on product features rather than price.
Maintaining policies and procedures for the mitigation of information technology risks, maintaining data backups, backup hardware, and some redundant systems.
Maintaining most of our marketable securities as long-term to maximize yield and fund future dividends.
Protecting proprietary technology and intellectual property by seeking patents, trademarks, and copyrights, and by maintaining trade secrets.
Increasing inventories to support increased product sales and to mitigate supply-chain risks.