Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Greenhouse Gas Emissions
• Waste Management
• Water Management
• Employee Health and Safety
• Supply Chain Responsibility
• Community Engagement

Environmental Achievements

• Doubled manufacturing energy productivity from 2011 to 2014, and again by 2017 (three years ahead of schedule).
• Reduced chemical waste generation from manufacturing by 277,000 pounds from 2014 to 2015.
• Reduced the use of a major raw material by 70% in 2016.
• Racine site achieved 86% waste diverted from landfill in 2017.
• Cree’s Huizhou site installed a new water recycling system in 2017, recycling an average of 211,000 gallons of water per day.

Social Achievements

• No work-related fatalities since 1987.
• Provided over 150,000 LED lights to Habitat homes nationwide.
• Given $784,000 to employee tuition over the past 5 years.

Governance Achievements

• All facilities certified to ISO 14001:2015 standard in 2018.
• Completed a limited assurance independent third-party verification of 2017 Scope 1, 2, and 3 GHG emissions.

Climate Goals & Targets

Environmental Challenges

• Carbon taxes
• Change in average temperatures
• Sea level rise
• Fluctuating socio-economic conditions
• Unsuccessful investment in new technologies
• Changes in consumer behavior

Mitigation Strategies

• Improved yield (increasing wafer size)
• Robust systems to control fab temperature and humidity
• Risk management measures for catastrophic events
• Dedicated staff, Supplier Code of Conduct, and Conflict Minerals Policy to manage supply chain risks
• Dedicated staff to manage electricity systems and interactions with utilities and policymakers
• Continued innovation and development of industry-leading energy-efficient products

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Change in average temperatures
• Sea level rise
• Changes in precipitation extremes and droughts

Transition Risks

• Carbon taxes
• Unsuccessful investment in new technologies
• Changes in consumer behavior

Opportunities

• Changes in consumer behavior
• Carbon taxes and product efficiency regulations and standards
• Change in average temperatures
• Changes in precipitation extremes and droughts
• Increased adoption of renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14001:2015

Third-party Assurance: Limited assurance independent third-party verification of Scope 1, 2, and 3 GHG emissions

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient LEDs, lighting, power, and radio frequency products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Energy Efficiency
• Water Management
• Waste Management
• Employee Health and Safety
• Employee Development and Retention
• Community Engagement
• Supply Chain Responsibility
• Product Sustainability
• Climate Change

Environmental Achievements

• Achieved EP100 goal for LED and LED Lighting products in 2017 (doubling energy productivity).
• Reduced waste to landfill by 10% at North Carolina manufacturing sites in 2018.
• Racine, WI facility achieved 90% waste diversion from landfill in 2018.
• Improved water recycling rates at Durham and Huizhou sites.
• Reduced chemical waste generation from manufacturing by 277,000 pounds from 2014 to 2015.
• Reduced the use of a major raw material by 70% in 2016.

Social Achievements

• Converted more than 500 temporary employee positions to full-time in 2018.
• Increased starting wage for entry-level employees in 2018.
• Launched an annual internship program in 2018, more than doubling intern population and increasing diversity by 25%.
• Launched Cree’s first Women’s Initiative in 2018.
• Completed first formal employee engagement survey in 2018, receiving over 2,500 responses.
• Reimbursed employees $137,218 for educational assistance programs in 2018.
• One year of no lost time at Lighting production facility in Racine, WI in 2018.

Governance Achievements

• All major manufacturing sites certified to ISO 14001:2015 standard in 2018.
• North Carolina manufacturing sites became members of the NC Environmental Stewardship Initiative in 2018.
• Refreshed corporate values in 2018 with employee input.
• Improved benefits programs in 2018 (parental leave, adoption assistance, enhanced time off, education assistance).

Climate Goals & Targets

Environmental Challenges

• Potential impacts of climate change (carbon taxes, temperature changes, sea level rise, socio-economic conditions in raw material sourcing regions).
• Risks associated with changing consumer behavior and emergence of competing technologies.
• Water scarcity in some operating regions.

Mitigation Strategies

• Robust systems in place to control fab temperature and humidity.
• Risk management measures to cope with catastrophic events and supply chain disruptions.
• Dedicated staff to manage facilities’ electricity systems and interactions with utilities and policymakers.
• Continued innovation and investment in R&D ($164.3 million in FY2018).
• Water recycling systems and water conservation and management plans.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Purchase Order Terms and Conditions

Climate-Related Risks & Opportunities

Physical Risks

• Change in average temperatures
• Sea level rise
• Changes in precipitation extremes and droughts

Transition Risks

• Carbon taxes
• Changes in consumer behavior
• Unsuccessful investment in new technologies

Opportunities

• Changes in consumer behavior (increased demand for energy-efficient products)
• Carbon taxes and product efficiency regulations
• Change in average temperatures
• Changes in precipitation extremes and droughts
• Increased adoption of renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14001:2015 (multiple sites), ISO 9001:2015 (multiple sites), IATF 16949:2016 (multiple sites)

Third-party Assurance: Limited assurance independent third-party verification of Scope 1, 2, and 3 GHG emissions by Environmental Resources Trust (ERT).

Sustainable Products & Innovation

• Energy-efficient LEDs and lighting
• Silicon carbide (SiC) power and radio frequency (RF) products

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Supply Chain Sustainability

Environmental Achievements

• Met EP100 goal for lighting products in 2017; Improved production yield, reducing GHG emissions and costs; Implemented energy efficiency projects at Huizhou facility, saving 5600 metric tons CO2e

Social Achievements

• Employee incentive programs for energy reduction and yield improvement; Employee recognition events for environmental initiatives; Sustainability report published

Governance Achievements

• Board-level oversight of climate-related issues; Sustainability committee; Incentives for management of climate-related issues

Climate Goals & Targets

Environmental Challenges

• Potential for carbon pricing mechanisms to increase operating costs; Chronic physical risks from rising temperatures affecting manufacturing processes; Chronic physical risks from rising sea levels impacting logistics and office locations; Raw material scarcity due to climate change impacts on supplier locations; Potential for technology substitution and market saturation; Slower adoption of technologies due to global issues (e.g., COVID-19 pandemic); Water stress/availability impacting manufacturing operations

Mitigation Strategies

• Exploring abatement technologies to reduce Scope 1 GHG emissions; Robust systems in place to control factory temperature and humidity; Risk management measures for catastrophic events; Dedicated staff, Supplier Code of Conduct, and Responsible Minerals Sourcing Policy to manage supply chain risks; Continued investment in R&D for innovative energy-efficient products; Business continuity plan to balance employee safety with product delivery; Internal water recycle facilities at manufacturing sites

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Purchase Order Terms and Conditions
• Responsible Minerals Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Rising mean temperatures
• Rising sea levels
• Water stress

Transition Risks

• Emerging regulation (carbon pricing)
• Technology substitution

Opportunities

• Increased demand for energy-efficient products due to carbon taxes and consumer preferences; Increased demand for products used in renewable energy and electric vehicles

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, TCFD

Certifications: ISO 14001

Third-party Assurance: Trinity

Sustainable Products & Innovation

• E-Series SiC semiconductor devices
• 5th generation (C5D) 1700V SiC Schottky diode

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water and Wastewater Management
• Waste Management
• Energy Efficiency of Operations
• Employee Diversity and Equal Opportunity
• Community Engagement (Local and Global)
• Labor and Employment Practices
• Employee Attraction/Development/Retention
• Occupational Health and Safety
• Contribution to Regional/Local Development
• Supply Chain/Sourcing Issues
• Financial Performance
• Customer Satisfaction
• Product Innovation
• Product Quality
• Acceleration of Sustainable Technologies
• International Trade Regulations
• Risk Management
• Intellectual Property Security (Cyber & Data Security)

Environmental Achievements

• Recycled 118 million gallons of water in 2020
• Reduced approximately 132,000 lbs of raw materials in 2020 compared to 2019 usage
• LED, power and radio frequency products sold in 2020 will save approximately 327 million MWh and 125 million metric tons CO2e over their estimated lifetimes compared to less efficient alternative products

Social Achievements

• Launched four new Employee Resource Groups (ERGs)
• Launched MPower mentoring program
• Implemented a matching gifts program
• Added Juneteenth as a company-recognized holiday
• Donated 65,000 KN95 masks to healthcare workers and first responders

Governance Achievements

• Completed 3 risk plans under our Enterprise Risk Management (ERM) program

Climate Goals & Targets

Environmental Challenges

• Water scarcity in Raleigh/Durham/Research Triangle Park area
• Malware/ransomware attacks on city and county government systems
• Supply chain disruptions due to climate events
• Slower adoption of technologies due to global issues (COVID-19)

Mitigation Strategies

• Water recycle system and rainwater harvesting system at Durham facility
• Business continuity plan and crisis response team
• Supplier Code of Conduct and Responsible Minerals Sourcing Policy
• Robust business continuity plan balancing employee safety with product delivery

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Supply chain disruptions due to extreme weather

Transition Risks

• Carbon taxes
• Fluctuating socio-economic conditions
• Unsuccessful investment in new technologies
• Slower adoption of technologies due to global issues

Opportunities

• Increased adoption of renewable energy
• Changes in consumer behavior
• Use of more efficient modes of transport
• Carbon taxes and product efficiency regulations

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB semiconductor standard, TCFD framework, UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001:2015, ISO 9001:2015, IATF 16949:2016, AS 9100D

Third-party Assurance: Trinity Consultants, Inc.

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 4
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13

Initiatives contribute to these goals through various programs and operations

Sustainable Products & Innovation

• Silicon carbide MOSFETs for EVs and renewable energy
• GaN on Silicon Carbide for 5G and other applications

Awards & Recognition

• 2021 Well Workplace Award (Bronze)
• Honorable Mention in Ragan’s Employee Communications Awards Class of 2020

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water and Wastewater Management
• Waste Management
• Employee Diversity and Equal Opportunity
• Community Engagement
• Labor and Employment Practices
• Occupational Health and Safety
• Supply Chain/Sourcing Issues
• Risk Management
• Intellectual Property Security
• Product Quality
• Product Innovation
• Acceleration of Sustainable Technologies

Environmental Achievements

• Reduced greenhouse gas emissions by 3,822 metric tons of CO2e through energy efficiency projects (changing wafer slicing process, lights exchange, upgrading acid exhaust fans, and consolidating operations)
• Recycled over 46 million gallons of water in 2021
• Marcy, NY Fab designed for 5000+ MWh annual energy savings, 50% electricity from low-carbon sources, and 500k+ gallons annual water savings

Social Achievements

• Launched Mental Health Allies Employee Resource Group
• Launched Matching Gifts Program
• Hosted Wolfspeed 2021 Virtual STEM Day
• Expanded global partnerships with organizations focused on increasing STEM opportunities and representation for marginalized and underrepresented individuals

Governance Achievements

• Completed three new risk plans and updated three under the Enterprise Risk Management (ERM) program
• Improved CDP Water Security score from C to B
• Achieved B on the CDP Climate Change survey

Climate Goals & Targets

Environmental Challenges

• Increased scope 1 and 2 emissions by ~35% relative to a base year due to changes in output, product mix, and expansion
• Increased water dependency due to expansion
• Supply chain disruptions due to climate events in raw material sourcing regions
• Potential for malware/ransomware attacks affecting water supply and discharge
• Local utilities not adopting renewable energy policies or upgrading grids

Mitigation Strategies

• Exploring GHG abatement technologies and installing abatement devices
• Implementing new energy-efficiency projects
• Exploring water recycle improvements and implementing water recycling systems
• Developing business continuity plans and crisis response teams
• Working with local utilities and policy makers
• Sourcing from local suppliers where possible

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Purchase Order Terms and Conditions
• Responsible Minerals Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• High-intensity storms
• Increased rainfall
• Drought
• Water stress

Transition Risks

• Carbon taxes
• Product efficiency regulations
• Changes in consumer behavior
• Supply chain disruptions due to climate events

Opportunities

• Increased demand for energy-efficient products
• Increased adoption of renewable energy
• Use of more efficient modes of transport

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB semiconductor standard, TCFD framework, UN SDGs

Certifications: ISO 14001, ISO 9001, IATF 16949, AS9100D

Third-party Assurance: Trinity Consultants, Inc. (limited assurance)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13

Initiatives contributing to various SDGs as detailed in the 'Our Contributions to the UN SDGs' section

Sustainable Products & Innovation

• Silicon Carbide MOSFETs for faster, more efficient EV charging
• Gallium nitride on Silicon Carbide for 5G telecom
• Silicon Carbide for solar energy and data centers

Awards & Recognition

• 2021 Well Workplace Award (Bronze)
• 2021 Gold and Silver Shovel Awards

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Water management
• Waste management
• Occupational health and safety
• Diversity, Equity & Inclusion
• Supply chain sustainability
• Responsible minerals sourcing

Environmental Achievements

• Increased recycled water by 35% from 66 to 89 million gallons
• Power and RF products sold in 2023 will save approximately 192 million MWh and 72 million metric tons CO2e over their estimated lifetimes compared to alternative products
• Installed point-of-use abatement to reduce GHG emissions at our manufacturing facility in Marcy, NY

Social Achievements

• Summer Internship Program hosted 163 students, 85% accepted full-time positions
• Achieved 84% overall employee engagement score
• Launched Protect the Pack initiative focused on actionable behaviors contributing to EHS culture

Governance Achievements

• North Carolina operations achieved Gold-level certification from the Responsible Business Alliance (RBA)
• Enhanced ERM governance structure
• Completed risk plans for 3 key risk areas

Climate Goals & Targets

Environmental Challenges

• Increased scope 1 and 2 (market) emissions by 41% relative to base year
• Increased scope 3 GHG emissions due to expanding operations and product mix changes
• Increased other air emissions due to ramping up the world’s largest silicon carbide fabrication facility in Marcy, New York

Mitigation Strategies

• Implementing new emissions reduction activities (point-of-use abatement)
• Exploring options for energy reduction and efficiency improvements
• Exploring options for incorporating renewable energy into portfolio strategy
• Establishing a Global GHG Steering Committee
• Incorporating an emission reduction metric into the corporate annual bonus plan

Supply Chain Management

Supplier Audits: ESG evaluations incorporated into supplier performance scorecards; initial survey with key suppliers.

Responsible Procurement

• Supplier Code of Conduct
• Standard Purchase Order Terms and Conditions
• ESG risk assessments

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Trinity Consultants, Inc.

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 4
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13

Details provided in report on how initiatives contribute to these goals.

Sustainable Products & Innovation

• Energy-efficient silicon carbide power and RF products

Awards & Recognition

• 5-Year Member Award, Environmental Stewardship Initiative
• Pro Patria Award, Employer Support of the Guard and Reserve (ESGR)
• Wolfspeed Chatham County Project, Community Economic Development Award, Southern Economic Development Council (SEDC)
• Margaret Chadwick, Corporate Leadership Award, Triangle Business Journal