Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Labor Practices
• Community Engagement
• Governance, Ethics, and Compliance
• Supply Chain Management

Environmental Achievements

• Reduced electrical power consumption by 13% in Q2 2012 compared to the average quarter consumption in 2011.
• Reduced water consumption by 48% in Q2 2012 compared to the average quarter consumption in 2011.
• Reduced in-transit mileage by more than 50 million miles per year.
• Reduced corrugated carton and polyethylene materials by more than 23 tons annually.
• Processed, sorted, and sold for reuse more than 1,600 metric tons of scrap materials and 1,400 pounds of precious metals in 2011.

Social Achievements

• 100% completion rate for Code of Business Conduct training for over 19,000 employees.
• Launched Arizona Technology Center in Junior Achievement’s BizTown.
• Donated $20,000 and over 1,400 volunteer hours to Junior Achievement.
• Provided hearing aids to over 5,800 adults and children in India.
• Supported childhood cancer research, raising over $30,000.

Governance Achievements

• Rolled out an updated Code of Business Conduct policy with 100% employee training and sign-off.
• Conducted a Cultural Diagnostic Survey to assess ethical culture and climate.
• Implemented an Ethics Road Show and Ethics Café to promote ethical conduct.

Climate Goals & Targets

Environmental Challenges

• Maintaining compliance with evolving environmental regulations (RoHS, REACH).
• Ensuring ethical sourcing of materials from conflict-free mines.
• Managing global opportunities to reduce EHS risks.

Mitigation Strategies

• Working with suppliers to certify products are free from restricted materials and sourced from conflict-free mines.
• Implementing an EICC-GeSI Supplier Engagement Model.
• Requiring over 200 key suppliers to sign a Statement of Conformance to CSR standards.
• Continuous improvement of EHS management system.

Supply Chain Management

Supplier Audits: More than 200 key suppliers required to sign a Statement of Conformance every two years.

Responsible Procurement

• EICC Code of Conduct
• Conflict-free mineral policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EICC Code of Conduct

Certifications: ISO 14001

Awards & Recognition

• Milieucharter Environmental Award (Belgium)
• Nine Consecutive Years of 100 percent Pretreatment Excellence Award (Oregon)
• Excellence in Corporate Social Responsibility activities (Philippines)
• Don Emilio Abello Energy Efficiency Award (Philippines)
• The Eco-Switch Award (Philippines)
• Safety Milestone Award (Philippines)
• Occupational Safety and Health Gold Award (Malaysia)
• Labor and Social Security Integrity Company Award (Leshan-Phoenix)
• “Love Company of Sichuan Province Pillar Project” Award (Leshan-Phoenix)
• Water Resource Management and Water Saving Advance Company Award (Leshan-Phoenix)
• “President Award” of the Resource Recycling Technique and System Award (SANYO)
• The Eco-Switch Award (SANYO Philippines)
• Outstanding Environmental Award (SANYO Philippines)

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Health & Safety
• People
• Society
• Governance, Ethics, Awareness, and Compliance
• Supply Chain Management

Environmental Achievements

• Reduced total energy consumption by 19 percent in 2013 compared to 2011.
• Reduced water consumption by 50 percent in 2013 compared to 2011.
• Reclaimed more than 1,100 metric tons of scrap materials and 1,500 pounds of precious metals, recouping over $31 million.
• Reduced in-transit shipping mileage by more than 50 million miles per year.
• Reduced packaging materials by more than 23 tons annually.

Social Achievements

• Promoted approximately 1,000 employees and transferred more than 3,200 employees to new positions in 2013.
• Conducted a companywide employee engagement survey with over 15,000 submissions.
• Supported various community outreach programs including educational initiatives, disaster relief, and volunteer activities.

Governance Achievements

• Achieved 100 percent completion of Code of Business Conduct training for over 19,000 employees.
• Hosted a cross-functional compliance and ethics conference.
• Enhanced monitoring and refinement of gifts/entertainment policy and continued internal anticorruption training.

Climate Goals & Targets

Environmental Challenges

• Sourcing conflict-free minerals.
• Maintaining high ethical business standards across diverse global operations.
• Ensuring compliance with evolving environmental regulations (RoHS, REACH).

Mitigation Strategies

• Required key suppliers to sign a Statement of Conformance to CSR tenants and the EICC Code of Conduct.
• Engaged a third-party audit firm to conduct on-site EICC audits at key suppliers.
• Implemented a robust Corporate Compliance and Ethics Program, including an ethics hotline and regular training.

Supply Chain Management

Supplier Audits: 25% of major suppliers audited on-site

Responsible Procurement

• EICC Code of Conduct
• Conflict-free mineral policy
• CSR Standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EICC Code of Conduct, EcoVadis Assessment

Certifications: ISO 14001

Third-party Assurance: EcoVadis (third-party assessment)

Sustainable Products & Innovation

• Energy-efficient semiconductor solutions

Awards & Recognition

• HP Social, Environmental Responsibility (SER) Award
• Hunger Hero (St. Mary’s Food Bank)
• Platinum Award (City of Gresham)
• GREAT Business Award (City of Gresham)
• Excellent Recycling Company Award (Niigata Prefecture)
• Award of Advanced Company for Water Resource Management (Leshan City)
• Award of Advanced Company Labor and Social Security Integrity (Leshan Human Resources)
• Gold Class I Award (Malaysian Society of Occupational Safety and Health)
• Occupational Health and Safety Good Award (Malaysia Society for Occupational Health and Safety)
• Gold Award (MOSHPA)
• Outstanding Environmental Performance Award (PEZA)
• Recognition Award (EICC)
• Hall of Fame Award (Philippine National Red Cross)
• Loyalty Award (EPA)
• ECOBONUS-Club Award (Green Philippines Island of Sustainability)
• Tripartite Seal of Compliance with Labor Standards (DOLE)
• Best Labor Management Council (DOLE)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Employee Relations
• Community Involvement
• Ethics
• Governance

Environmental Achievements

• Reduced water consumption by 52 percent (2011-2015)
• Reduced energy consumption by 9 percent (2011-2015)
• Reduced carbon emissions by 12 percent (2011-2015)
• Achieved a Gold rating from the EcoVadis Assessment (top 2%)

Social Achievements

• Established a Global Corporate Giving Program
• Launched a Diversity and Inclusion initiative in the US
• Expanded women’s leadership initiative
• Achieved 87% participation rate in companywide employee engagement survey

Governance Achievements

• Named a 2016 World’s Most Ethical Company® by the Ethisphere Institute
• Implemented robust compliance and ethics program
• 98.07% employee completion rate for anti-corruption training
• 98.84% employee completion rate for anti-harassment/anti-discrimination training

Climate Goals & Targets

Environmental Challenges

• Supply chain risks related to conflict minerals
• Risks related to corruption in certain operating countries
• Risks related to customers in China (state-owned enterprises)

Mitigation Strategies

• Collaboration with suppliers to ensure conflict-free sourcing
• Robust compliance and ethics program with anti-corruption training
• Risk assessments of third parties
• Ongoing monitoring and oversight of compliance

Supply Chain Management

Supplier Audits: 25% of high-risk suppliers undergo AMA audits; Third-party audits conducted at selective key suppliers in China, Taiwan, and Malaysia

Responsible Procurement

• EICC Code of Conduct
• Conflict-free minerals policy
• Supplier self-assessment questionnaires (SAQs)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, OHSAS 18001

Awards & Recognition

• World’s Most Ethical Company®
• EcoVadis Gold rating

Environmental Metrics

ESG Focus Areas

• Environmental conservation
• Supply chain engagement
• Community engagement
• Employee relations
• Governance and ethics

Environmental Achievements

• Reduced water consumption by 2.2 percent compared to 2015
• Reduced total energy consumption by 3.35 percent compared to 2015
• Reused and recycled 12,995,246 kilograms of waste in 2016
• Processed, sorted, and sold for reuse approximately 1,072 metric tons of scrap materials and 1,933 pounds of precious metals

Social Achievements

• Received Outstanding Employer of the Year Award for the fourth consecutive year from the Philippines Economic Zone Authority
• Received the National Model of Employer Award from the China Federation of Trade Unions
• Named to the 2016 Forbes America’s Best Employers list
• Named a World’s Most Ethical Company by Ethisphere
• Launched STEM UP affinity group to promote diversity and inclusion
• Expanded Women's Leadership Initiative globally

Governance Achievements

• Maintained a robust Corporate Compliance and Ethics Program
• Achieved 100 percent completion rate for information security awareness training
• Completed 100% of Code of Business Conduct, EICC, and Information Security Awareness trainings
• Completed 100% of anti-harassment and anti-corruption training for selected employees

Climate Goals & Targets

Environmental Challenges

• Risks related to corruption in countries with lower Transparency International Corruption Perceptions Index rankings (Philippines, Vietnam)
• Greater risk with customers in China due to state-owned enterprises and government officials under the U.S. Foreign Corrupt Practices Act
• Potential risks from climate change regulations requiring abatement systems and capital costs

Mitigation Strategies

• Risk assessments conducted at all manufacturing sites
• Ongoing monitoring and oversight of compliance and ethics programs
• Development of a Supplier Code of Conduct and online training
• Integration of climate change considerations into business strategy
• Focus on energy efficiency improvements and installation of energy-efficient systems

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• All suppliers required to agree and comply with ON Semiconductor’s Code of Business Conduct and the EICC Code of Conduct
• EICC self-assessment questionnaires for major corporate suppliers
• EICC training offered to suppliers
• Third-party verification of supplier conformance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in climate change regulation

Opportunities

• Reducing carbon footprint
• Improving energy efficiency
• Developing energy-efficient semiconductor devices

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lead and halogen-free semiconductor devices
• Energy-efficient semiconductor devices

Awards & Recognition

• Huawei Green Partner Award
• Niigata Prefecture Environmental Sustainability Award
• Gigabyte 2016 Corporate Social Responsibility Award
• EICC Validated Audit Program (VAP) Platinum Status
• EcoVadis Gold rating
• Celestica Best Sustainability Partner Award
• World’s Most Ethical Company designation

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance and Ethics
• Responsible Sourcing
• Employee Relations
• Community Involvement

Environmental Achievements

• Reduced water consumption by 14% at wafer fabs and 15% at assembly and test sites.
• Reduced normalized energy consumption by 14% at wafer fabs and 8.6% at assembly and test sites.
• Reduced normalized carbon emissions by 8% at front-end and assembly/test facilities.
• Scope 2 greenhouse gas emissions reduced by 67,675 metric tons of carbon dioxide due to 47 projects.
• 13,518,781 kilograms of waste reused and recycled.
• Reclaimed over $26.6 million worth of scrap materials.

Social Achievements

• Launched a new comprehensive wellness program in the U.S.
• Implemented a paid employee volunteer program in North America.
• Increased employee engagement score by four points.
• Supported various community initiatives through the Global Corporate Giving program.
• Partnered with organizations to support STEM education and disaster relief.

Governance Achievements

• Named World’s Most Ethical Company for the third consecutive year.
• Achieved an outstanding score of 85 out of 100 in the EcoVadis assessment.
• Continued to grow the Corporate Compliance and Ethics Program globally.
• Implemented a non-retaliation policy with strong employee trust.

Climate Goals & Targets

Environmental Challenges

• Increased global voluntary turnover due to the Fairchild Semiconductor acquisition and competition for talent in Asia.
• Potential risks from climate change regulations requiring abatement systems and capital costs.

Mitigation Strategies

• Investing in employee engagement and reward programs to reduce turnover.
• Integrating climate change into business strategy and focusing on carbon footprint reduction.
• Implementing energy-efficient systems at manufacturing sites.

Supply Chain Management

Supplier Audits: 25% of high-risk suppliers audited every other year; internal audits conducted at least once every two years.

Responsible Procurement

• Suppliers agree to ON Semiconductor’s Code of Business Conduct and the RBA Code of Conduct.
• Suppliers complete risk assessments through the RBA SAQ every other year.
• Training provided to medium- or high-risk suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in climate change regulations

Opportunities

• Developing energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (Environmental Management Systems), OHSAS 18001 (Occupational Health and Safety Management System)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lead and halogen-free semiconductor devices
• Energy-efficient semiconductor devices

Awards & Recognition

• World’s Most Ethical Company (three consecutive years)
• Barron’s list of 100 Most Sustainable Companies
• EcoVadis Assessment Outstanding Score
• RBA Platinum Status Recognition (South Portland, Maine and Seremban, Malaysia)
• Other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance and Ethics

Environmental Achievements

• Reduced normalized energy consumption by 16.8% at wafer fabrication and 9.7% at assembly and test operations since 2016.
• Reduced normalized water consumption by 17.3% at wafer fabrication and 10.5% at assembly and test operations since 2016.
• Reused and recycled 14,284,368 kg of waste globally, while 5,875,919 kg went to landfill in 2018.
• Reduced Scope 1 and 2 emissions by 8% at wafer fabrication and 13.4% at assembly and test operations since 2016.

Social Achievements

• Launched a dollars-for-doers program for employees in North America.
• Formalized a global human rights policy and joined the UN Global Compact.
• Added diversity metrics to the corporate bonus plan.
• Delivered the breakthrough leadership program focusing on advancing women globally.
• Achieved 100% RMAP conformant smelters for 3TG.

Governance Achievements

• Named one of the World’s Most Ethical Companies® for the fourth consecutive year.
• Added new Compliance and Ethics Liaisons (CELs) across the globe.
• Improved employee perception of quality performance.
• Achieved highest score of “1” under the ESG pillars of the Institutional Shareholder Services Assessment.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (natural disasters, regulatory changes)
• Supply chain disruptions
• Maintaining ethical and compliant business practices globally.

Mitigation Strategies

• Integrated climate change into business operations and strategy.
• Implemented enterprise risk management and business continuity programs.
• Engaged suppliers in regular cycles, communicating expectations and conducting audits.
• Formalized a global human rights policy and joined the UN Global Compact.
• Implemented a robust Corporate Compliance and Ethics Program (CCEP).

Supply Chain Management

Supplier Audits: 100% of facilities met the target SAQ score of 85% or greater in 2018.

Responsible Procurement

• Code of Business Conduct
• RBA Code of Conduct
• RMI compliance
• Risk assessments
• Training opportunities
• Verification audits
• Corrective action plans

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: comprehensive option

Certifications: ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• Solar inverters
• Efficient motors for fans
• Electric vehicles
• Power conservation technologies

Awards & Recognition

• World’s Most Ethical Companies®, Fortune 500, Fortune’s 100 Fastest Growing Companies, Dow Jones North America Sustainability Index, Barron’s 100 Most Sustainable Companies

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Environmental Compliance
• Occupational Health and Safety
• Diversity and Equal Opportunity
• Human Rights
• Supply Chain Responsibility
• Anti-corruption

Environmental Achievements

• Reduced energy consumption in wafer fabs by -5.68% and in assembly and test by -3.19% (normalized)
• Processed and sold 910,000 kg of scrap materials and 1,376 kg of precious metals for reuse
• Reduced GHG emissions by 9,341 Metric tons of CO2 through 35 projects in 4 countries

Social Achievements

• 99.6% employee completion rate for annual Code of Business Conduct training, which includes a module on anti-corruption
• Implemented a safety culture improvement program, awarding employees for reporting unsafe conditions
• Offered programs focused on nutrition, weight loss, physical fitness and avoidance of unhealthy habits

Governance Achievements

• All 10 board members (100%) completed annual Code of Business Conduct training, including anti-corruption module
• Implemented a written policy on related party transactions
• Annual self-evaluation of the board and its committees

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Top expenditure suppliers complete risk assessment every other year

Responsible Procurement

• Corporate Social Responsibility Statement of Commitment provided to all suppliers; top suppliers sign Corporate Social Responsibility Statement of Conformance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: OHSAS 18001 (for manufacturing operations)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Over 95% of products available in lead-free packaging

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Human Rights
• Ethics
• Sustainability

Environmental Achievements

• 12,101 metric tons of CO2 emissions reduced through 49 projects in six countries
• 76% of hazardous and non-hazardous waste recycled
• 1.71 billion gallons of water recycled

Social Achievements

• Together, the onsemi Global Giving Program and the ON Semiconductor Foundation invested more than $1.8 million in our communities in 2020.
• Over $312,000 in COVID-19 relief through cash and in-kind donations
• Almost $92,000 in disaster relief funds

Governance Achievements

• Named to the 2021 Bloomberg Gender Equality Index for transparent disclosure practices and overall performance across female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies and pro-women branding for a second year in a row.
• Ranked #10 on Barron’s 100 Most Sustainable Companies.
• Received an EcoVadis Platinum Level Recognition (top 1% of 768 companies)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic
• Potential supply shortage of rare earth elements

Mitigation Strategies

• Developed alternative sourcing strategies
• Integrated climate change into business operations and strategy
• Implemented ERM program to manage risks

Supply Chain Management

Supplier Audits: 5 RBA audits completed in 2020

Responsible Procurement

• RMAP conformant smelters (99.6%)
• Supplier self-assessment questionnaires (99%)
• RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, UN Global Compact

Certifications: ISO 45001:2018 (EHS Management System)

Third-party Assurance: Trucost (limited assurance for CDP response)

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

onsemi's products, programs and initiatives contribute to these goals.

Sustainable Products & Innovation

• Energy-efficient products

Awards & Recognition

• World’s Most Ethical Companies® (six consecutive years)
• Newsweek’s America’s Most Responsible Companies
• Barron’s 100 Most Sustainable Companies
• EcoVadis Platinum Level Recognition
• ISS ESG Prime Corporate Rating
• MSCI ESG Rating A

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Supply Chain Responsibility
• Human Rights

Environmental Achievements

• Reduced water withdrawal by 4.9% compared to the previous year.
• Recycled 5,779 megaliters of water (equivalent to approximately 2,300 Olympic-size swimming pools).

Social Achievements

• Launched the "Giving Now" global giving program, focusing on STEAM education, employee volunteerism, and disaster relief.
• Improved workforce diversity (25.7% minority workforce in the U.S., 45% female worldwide).

Governance Achievements

• Established a Governance and Sustainability Committee to oversee ESG matters.
• Achieved 98% conformance of smelters for responsible minerals sourcing.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions beyond business travel.
• Managing supply chain risks related to conflict minerals.

Mitigation Strategies

• Collaborating with suppliers to track and manage their emissions.
• Engaging in due diligence with suppliers to ensure responsible sourcing of conflict minerals.
• Working towards 100% responsible minerals assurance process (RMAP) conformant smelters.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Minerals Initiative (RMI) membership
• Supplier Handbook outlining social and environmental requirements
• Conflict Minerals Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products (e.g., silicon carbide)

Reporting Standards

Frameworks Used: GRI, GHG Protocol, AA1000AS v3

Certifications: ISO 14001, ISO 45001

Third-party Assurance: S&P Global Sustainable1

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Intelligent power and sensing technologies for electric vehicles, renewable energy, and industrial automation

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonizing onsemi's operations and supply chain
• Expanding onsemi's triple bottom line revenue
• Decreasing total water demand and increasing water recycling in onsemi manufacturing
• Enhancing onsemi’s talent attraction and retention
• Integrating sustainability-related risks, opportunities and impacts into onsemi corporate governance
• Building operational resilience through policies, procedures and infrastructure enhancements
• Ensuring a diverse workforce and an inclusive culture at onsemi
• Upholding human rights in onsemi’s supply chain
• Increasing hazardous and non-hazardous waste recycling

Environmental Achievements

• Reduced total energy use by 2% and reduced purchased electricity by 29,403 MWh from 2021 levels
• Reduced Scope 1 emissions from 2,485,870 MTCO2e in 2021 to 841,104 MTCO2e in 2022 (due to improved calculation methodology)
• Reduced Scope 2 emissions intensity compared to 2021 levels
• Achieved 42% water recycling rate
• Diverted 7,529 metric tons of waste from disposal at Bucheon (South Korea) facility
• Diverted roughly 202,000 kg of metal hydroxide sludge from disposal at Seremban (Malaysia) facility
• Returned 103 iron wire coils to supplier at Roznov (Czech Republic) facility, diverting about 5,000 kg of waste from disposal

Social Achievements

• Achieved 90% overall employee engagement score (2-point increase from previous year)
• Exceeded target scores for mitigating obstacles and improving cross-organization communication from 2021 pulse survey
• Implemented a new Goals Planning system and Memo tool to enhance employee alignment and communication
• Deployed Beekeeper Mobile App for global employee communication
• Expanded employee volunteer program benefits to employees in Asia and Europe
• Logged over 1,800 employee volunteer hours in 2022
• Donated $1.66 million in charitable donations globally

Governance Achievements

• Tied aspects of 2022 compensation program to Scope 1, 2, and 3 emissions
• Maintained ESG “A” rating from MSCI for four and five consecutive years
• Received EcoVadis Platinum Level Recognition for the third consecutive year
• Received an overall ESG risk rating score of 22.6/100 points from Sustainalytics
• Ranked #75 on Barron’s 100 Most Sustainable Companies
• Became TISAX certified at Munich, Germany site

Climate Goals & Targets

Environmental Challenges

• Challenges around proper knowledge sharing by employees for implementation of proposed solutions
• Duration of time needed to hit key milestone tasks
• Uncertainties around the availability of renewable energy and credible carbon removal/offset technology
• Projected future organic and inorganic growth of the company through 2040
• Achieving full and accurate data collection due to inherent manual data entry processes
• Facilitating a standardized approach on reduction levers across varied operations and balancing production demands
• Supply chain disruptions

Mitigation Strategies

• Invested in GHG calculation accounting software
• Developed education and training workshops
• Inserted climate-related data into more company processes
• Developed alternative sourcing strategies
• Planned divestitures and downsizing of facilities
• Installation of energy-efficient equipment within newly acquired sites and site expansions
• Engaging with supply chain partners to disclose GHG emissions and set science-based reduction targets

Supply Chain Management

Supplier Audits: 10 manufacturing sites participated in RBA VAP audits; 10 sites underwent internal audits.

Responsible Procurement

• Supplier Code of Conduct (outlined in Supplier Handbook)
• Bi-annual RBA conformance certification
• Risk assessments
• Business reviews
• Verification audits
• Addressing non-conformance
• Responsible Minerals Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Damage to facilities
• Limits to energy and water availability
• Impacts on employee health, safety, and productivity

Transition Risks

• Carbon pricing schemes
• Regulatory limits on carbon-related processes
• Varied availability of renewable energy
• Increased sustainability reporting requirements
• Impacts on suppliers

Opportunities

• Increased demand for electrification technologies
• Increased demand for resource-efficient technologies
• Increased demand for avoided emissions and carbon removal technology

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: ISO 14001, ISO 45001, TISAX

Third-party Assurance: APEX Companies

UN Sustainable Development Goals

• Goal 6
• Goal 8
• Goal 10
• Goal 12
• Goal 13

The report explains how onsemi's initiatives contribute to these goals.

Sustainable Products & Innovation

• ASPM16 Exciter Module
• EliteSiC SiC Power Modules
• Top-Cool MOSFETs
• SiC technologies

Awards & Recognition

• Barron’s 100 Most Sustainable Companies
• MSCI ESG “A” Rating
• IBD’s 100 Best ESG Companies
• EcoVadis Platinum rating
• ISS ESG Prime Corporate Rating
• World Finance Sustainable Finance Award
• Dow Jones Sustainability Index North America
• Military Friendly® Company
• Bloomberg Gender-Equality Index

Environmental Metrics

ESG Focus Areas

• Decarbonizing onsemi’s operations and supply chain
• Expanding onsemi’s triple-bottom-line revenue
• Decreasing total water demand and increasing water recycling in onsemi manufacturing
• Enhancing onsemi’s talent attraction and retention
• Integrating sustainability-related risks, opportunities and impacts into onsemi corporate governance
• Building operational resilience through policies, procedures and infrastructure enhancements
• Ensuring a diverse workforce and an inclusive culture at onsemi
• Upholding human rights in onsemi’s supply chain
• Increasing hazardous and non-hazardous waste recycling

Environmental Achievements

• Reduced Scope 1 and 2 emissions by approximately 11%
• Reduced Scope 3 emissions by 27%
• 42% water recycling rate (6,507 megaliters of water recycled)
• 87% non-hazardous waste diversion rate

Social Achievements

• Introduced Culture and Core Values, supported by several character traits
• $1.36 million USD awarded to 41 agencies for STEAM education (41% YoY increase)
• 6,457 volunteer hours donated by global workforce ($963K USD total value)
• Improved CDP Climate Change score from 'C' and 'D' to 'B'

Governance Achievements

• Revamped Culture and Core Values, rolling out three new values
• Maintained ISS ESG “Prime” rating
• Maintained MSCI ESG “A” rating for five consecutive years
• Received Sustainalytics ESG Risk Rating Score of 22.6/100

Climate Goals & Targets

Environmental Challenges

• Achieving full and accurate data collection due to inherent manual data entry processes
• Facilitating a standardized approach on reduction levers across our varied operations while balancing production demands
• Challenges around proper knowledge sharing by employees across the organization for implementation of proposed solutions
• Uncertainties around the availability of renewable energy and credible carbon removal/offset technology in different regions

Mitigation Strategies

• Invested in GHG emissions calculation accounting software
• Developed education and training workshops conducted across manufacturing sites
• Developed a prioritization pyramid for decarbonization across Scopes 1, 2, and 3

Supply Chain Management

Supplier Audits: 12 manufacturing sites participated in initial or closing RBA VAP audits in 2023

Responsible Procurement

• Supplier Code of Conduct aligned with Supplier Handbook
• Requirement for top expenditure suppliers to complete RBA’s online self-assessment questionnaire (SAQ) annually
• Responsible Minerals Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Damage to facilities
• Limits to energy and water availability
• Extreme weather impacts on employee health and safety

Transition Risks

• Carbon pricing schemes
• Regulatory limits on carbon-related processes
• Varied availability of renewable energy
• Increased sustainability reporting requirements

Opportunities

• Increased demand for onsemi products supporting electrification
• Increased demand for products supporting energy and water efficiency
• Increased demand for avoided emissions and carbon removal technology

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: ISO 14001, ISO 45001

Third-party Assurance: APEX Companies

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

onsemi's initiatives contribute to these goals through water conservation, fair labor practices, diversity and inclusion programs, waste reduction, and emissions reduction efforts.

Sustainable Products & Innovation

• ASPM16 exciter modules (reduced toxic mining waste)
• Audiology Digital Signal Processors for Hearing Health
• Analog Front Ends (AFEs) for Continuous Glucose Monitoring
• Smart Power Stages for AI Data Center applications
• EliteSiC SiC Power Integrated Modules (PIM)
• Top-Cool MOSFETs

Awards & Recognition

• 3BL 100 Best Corporate Citizens
• IBD 100 Best ESG Companies
• Barron’s 100 Most Sustainable Companies
• World Finance Sustainability Award
• EcoVadis Platinum rating
• ISS ESG Prime Corporate Rating
• MSCI ESG “A” Rating