Climate Change Data

VALENS SEMICONDUCTOR LTD.

Climate Impact & Sustainability Data (2020-01 to 2021-12, 2022, 2023)

Reporting Period: 2020-01 to 2021-12

Environmental Metrics

Total Carbon Emissions:1486 tCO2e (Scope 1 & 2 combined in 2021)
Scope 1 Emissions:755 tCO2e (2021)
Scope 2 Emissions:731 tCO2e (2021)
Total Energy Consumption:1.55 MWh (2021)
Water Consumption:2,244 m3 (2021)
Waste Generated:166 kgs of electronic waste (2021), 242 kgs of paper (2021)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Supply Chain Responsibility
  • Product Sustainability

Environmental Achievements

  • Reduced total electricity consumption by 4% in 2021 despite a 5% workforce expansion.
  • Reduced water consumption by 26% in 2021.
  • Reduced Scope 1 emissions to 755 tCO2eq and Scope 2 emissions to 731 tCO2eq in 2021.

Social Achievements

  • Hosted female empowering training sessions with a local NGO.
  • Became an official sponsor of the Sail-IL engineering student team.
  • Maintained a voluntary retention rate of 93.0% (above industry average).

Governance Achievements

  • Established a Nominating, Governance and Sustainability Committee.
  • Achieved 100% employee training on the Code of Business Conduct and Ethics.
  • Maintained a highly independent Board (75% or above).

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality across our product portfolio by 2039.
Medium-term Goals:
  • Increase the representation of women in technical and entry-level positions by 10% by 2030.
  • Increase the representation of women in managerial roles by 10% by 2030.
  • Transition employee leased company vehicles to be at least 70% hybrid or electric by 2030.
Short-term Goals:
  • Reduce per-employee energy use in the office by at least 5% in 2022.
  • Launch a corporate campaign in 2022 to reduce printed materials.
  • Convert to recycled or certified office paper by the end of 2023.

Environmental Challenges

  • Minimizing the environmental impact of products throughout the value chain.
  • Managing EMI/EMC interference in automotive applications.
  • Reducing the risk of safety recalls in automotive.
Mitigation Strategies
  • Collaboration with partners throughout the value chain (e.g., TSMC, ASEH).
  • Development of adaptive, hardware-based Digital Signal Processing (DSP) solutions.
  • Use of simple, low-cost, lightweight Unshielded Twisted Pair (UTP) wiring.

Supply Chain Management

Responsible Procurement
  • Compliance with REACH and RoHS regulations.
  • Collaboration with suppliers committed to environmental sustainability (e.g., TSMC, ASEH).
  • Expectation of supplier compliance with RBA Code of Conduct.

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Standards

Certifications: ISO 14001

UN Sustainable Development Goals

  • Goal 4 (Quality Education)
  • Goal 3 (Good Health and Well-being)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 9 (Industry, Innovation and Infrastructure)

Valens' technology contributes to these SDGs through improved education access, enhanced healthcare, economic growth, sustainable transportation, resource efficiency, and climate action.

Sustainable Products & Innovation

  • Chipsets designed for energy efficiency and reduced material consumption.

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1037.5 tCO2eq
Scope 1 Emissions:505.5 tCO2e
Scope 2 Emissions:532 tCO2e
Total Energy Consumption:1069K kwh
Water Consumption:1904 m3
Waste Generated:126 kgs of electronic waste recycled

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Lowered total electricity consumption by 17% compared to 2021
  • Reduced water usage by 15% from 2021
  • Reduced per employee electricity consumption by 23% (surpassing the 5% target)

Social Achievements

  • Organized 22 events for employees in 2022 (family trips, volunteering, holiday celebrations, lectures, movie nights)
  • Partnered with Pitchon Lev NGO to break the intergenerational cycle of poverty in Israel
  • Donated computer equipment to those in need

Governance Achievements

  • Established a Nominating, Governance, and Sustainability Committee in 2021
  • 100% of new employees received training on the Code of Business Conduct and Ethics
  • No reported incidents or legal cases relating to corruption, anti-competitive behavior, or non-compliance issues in 2022 and 2021

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase the representation of women in technical and entry level positions by 10% by 2030
  • Increase the representation of women in managerial roles by 10% by 2030
  • Transition employee leased company vehicles to be at least 70% hybrid or electric by 2030
Short-term Goals:
  • Reduce usage of disposable cups by 15% in 2023 from 2022
  • Transition to non-disposable dishes in offices in 2023

Environmental Challenges

  • Limited control over building operations (leased offices)
  • Managing climate change-related risks in the supply chain
Mitigation Strategies
  • Relocated server rooms to a 3rd party data-storage vendor for improved energy efficiency
  • Conducted an audit of the office's air-conditioning system
  • Collaborating with suppliers who are striving to manage their environmental footprint
  • Implementing the recommendations from the IT Risk Assessment Survey

Supply Chain Management

Responsible Procurement
  • Working with highest tier of global suppliers
  • Expecting suppliers to comply with RBA Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards, SASB

Certifications: ISO 14001

UN Sustainable Development Goals

  • Good Health and Well-being
  • Quality Education
  • Decent Work and Economic Growth
  • Sustainable Cities and Communities
  • Responsible Consumption and Production
  • Climate Action
  • Industry, Innovation and Infrastructure

The report mentions how Valens' products contribute to these SDGs through various applications (education, healthcare, automotive).

Sustainable Products & Innovation

  • Chipsets that reduce power consumption and enable use of lightweight cables

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:763 tCO2e/year (Scope 1 and 2 combined)
Scope 1 Emissions:280 tCO2e/year
Scope 2 Emissions:483 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1027 MWh/year
Water Consumption:1904 m3/year
Waste Generated:140 kg/year (electronic waste recycled)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 20% reduction in total electricity consumption at headquarters compared to 2021
  • 5% decrease in gasoline consumption for employee vehicles from 2022 to 2023
  • 27% reduction in total consumption compared to the previous year

Social Achievements

  • Pilot one-day interactive program for team leaders and group managers to foster dialogue and build peer connections
  • Over 80% participation in corporate well-being events (22 events total)
  • Launched Culture Club with personalized events
  • Offered complimentary fitness studio memberships

Governance Achievements

  • Code of conduct trainings for all employees
  • Zero incidents of data breaches, leaks, losses, or theft of customer data in 2023 and 2022
  • Initiated audit for ISO27001 – information security management systems (ISMS)

Climate Goals & Targets

Long-term Goals:
  • Begin calculating scope 3 emissions by end of 2026
  • ESG and climate training for the Board by end of 2025
  • Increase the representation of women in technical and entry-level positions by 10% by 2030
  • Increase the representation of women in managerial roles by 10% by 2030
Medium-term Goals:
  • Source at least 30% of office electricity from renewable sources by end of 2027
  • Achieve a 25% reduction in office waste by the end of 2030
  • Introduce a quarterly employee wellness program with 80% employee participation by the end of 2027
  • Continue volunteering program with 15% employee participation by the end of 2027
Short-term Goals:
  • Reduce energy consumption by 10% by the end of 2025
  • Establish at least two mentorship pairings annually for underrepresented groups in technical roles by end of 2026

Environmental Challenges

  • Limited control over building operations (leased offices)
  • Managing environmental impact as a fabless company relying on suppliers
Mitigation Strategies
  • Relocated server rooms to a 3rd party data-storage vendor for improved energy efficiency
  • Flexible work-from-home policy to reduce commute fuel consumption
  • Collaboration with suppliers on environmental management strategies
  • Negotiation process to update building's AC unit in 2024

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Collaboration with suppliers on environmental management strategies
  • Compliance with RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Good health and well-being
  • Quality education
  • Gender equality
  • Decent work and economic growth
  • Industry, innovation and infrastructure
  • Sustainable cities and communities
  • Responsible consumption and production
  • Climate action

Company's business and ESG strategies align with these SDGs

Sustainable Products & Innovation

  • Chipsets designed for low power consumption and improved energy efficiency

Awards & Recognition

  • Not disclosed