Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Quality and Safety
• Employee Well-being
• Responsible Business Practices

Environmental Achievements

• Reduced environmental footprint through lean manufacturing and green building initiatives (Ieper building)
• Development of products contributing to reduced carbon emissions and improved fuel economy for customers

Social Achievements

• Creation of an enjoyable work environment with focus on light, climate control, and collaborative spaces
• Commitment to diversity and respect in the workplace
• Investment in employee training and development

Governance Achievements

• Compliance with ISO/TS 16949:2009 and ISO 14001 certifications
• Proactive risk management applying elements of the ISO 26262 standard

Climate Goals & Targets

Environmental Challenges

• Rapid technological change in the semiconductor industry
• Intense competition
• Currency fluctuations
• Managing growth
• Potential future acquisitions
• Dependence on key personnel
• Product defects
• Evolving distribution channels
• Protection and enforcement of intellectual property rights
• Dependence on significant customers
• Volatility of share price

Mitigation Strategies

• Substantial investments in research and development and personnel
• Lean manufacturing and management techniques
• Close-knit working relations with customers and suppliers
• Rigorous and extensive testing of products
• Patent protections and other measures to protect intellectual property
• Diversification of customer base
• Use of derivative financial instruments to manage risks

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO/TS 16949:2009, ISO 14001

Third-party Assurance: BDO Bedrijfsrevisoren BV o.v.v.e. CVBA

Sustainable Products & Innovation

• Products contributing to reduced carbon emissions and improved fuel economy

Awards & Recognition

• 2013 Euronext Brussels award of best performing stock in the Belgian midcap segment (Bel Mid)

Environmental Metrics

ESG Focus Areas

• Environmental awareness
• Sustainability
• Quality
• Employee well-being
• Corporate social responsibility

Environmental Achievements

• Passed all certification audits for ISO/TS 16949 and ISO 14001 standards.
• Consistent efforts for improvement to all processes and at all sites.

Social Achievements

• Backing for the full STEM academy network in Flanders.
• Progress in all categories compared with the previous employee survey (especially involvement with the company showed a rising line).
• Opened a new R&D center in Dresden, Germany.

Governance Achievements

• Company-wide consultations resulted in a revamped brand identity.
• Listed in Forbes magazine's top 50 most reliable companies in Western Europe.
• Received the ‘Vlerick Award 2016’.

Climate Goals & Targets

Environmental Challenges

• Currency fluctuations
• Intense competition
• Rapid technological change
• Dependence on key personnel
• Potential product defects
• Evolving distribution channels
• Protection and enforcement of intellectual property rights
• Managing growth
• Potential future acquisitions
• Risks related to the semiconductor market

Mitigation Strategies

• Use of derivative financial instruments to manage foreign exchange risks, interest risks and inflation risks.
• Investing in R&D and people to maintain and strengthen market position.
• Rigorous and extensive testing of products.
• Regular evaluation of potential acquisitions.
• Strengthening financial and accounting systems and controls.
• Developing management information systems.
• Attracting, integrating, retaining and motivating qualified personnel.
• Sourcing wafers from multiple suppliers to reduce dependency.

Supply Chain Management

Responsible Procurement

• Close relationships with suppliers
• Focus on strong continuity in collaborative activities

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO/TS 16949, ISO 14001

Third-party Assurance: DQS

Sustainable Products & Innovation

• Energy-efficient products
• MLX91210 series of current sensing devices
• MLX90819 pressure sensor
• MLX92292 magnetic sensor
• MLX75305 series of advanced light sensor ICs
• MLX81112, MLX81115 and MLX81120 LED drivers

Awards & Recognition

• Forbes top 50 most reliable companies in Western Europe
• Vlerick Award 2016
• Randstad Regional Award (Limburg and West Flanders)
• Globe for best score for high-quality training

Environmental Metrics

ESG Focus Areas

• Gender equality
• Environmental responsibility
• Safety
• Sustainability
• Human rights
• Anti-corruption
• Community engagement
• STEM education

Environmental Achievements

• ISO 14001 certification, indicating low environmental impact
• Minimized waste through efficient separation and recycling
• Reduced CO2 emissions and increased renewable energy use
• No significant spills or non-compliances with environmental laws

Social Achievements

• 60/40 female/male representation on the Board of Directors
• 4 female and 6 male executives
• CEO Françoise Chombar awarded '2018 BNP Paribas Global Prize for Women Entrepreneurs'
• Various social engagement initiatives across sites (toy collection, graduate program, 'Women in engineering' network, etc.)
• No work-related fatalities or serious injuries

Governance Achievements

• Compliance with IATF 16949:2016 for automotive quality
• Implementation of a Speak-up policy to encourage reporting of unethical behavior
• No incidents of corruption reported
• Alignment with the 2009 Belgian Code on Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Reduced short-term visibility and signs of inventory corrections at customers due to uncertain economic and geopolitical situation
• Intense competition in the semiconductor market
• Rapid technological change
• Dependence on key personnel
• Potential lack of manufacturing availability from foundries and subcontractors
• Currency fluctuations
• Claims alleging intellectual property infringement

Mitigation Strategies

• Significant investments in additional capacity (manufacturing, testing, sales offices)
• Focus on innovation and next-generation products
• Strong relationships with customers and suppliers
• Implementation of robust risk management processes
• Use of derivative contracts to manage foreign exchange and interest rate risks
• Patent protection and other measures to protect intellectual property
• Proactive due diligence and monitoring of supply chain

Supply Chain Management

Responsible Procurement

• VDA6.3 assessment for supplier selection
• Compliance with Melexis code of conduct and all applicable laws
• Requirement for conflict-free minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, IATF 16949:2016

Third-party Assurance: PwC Bedrijfsrevisoren cvba

Awards & Recognition

• '2018 BNP Paribas Global Prize for Women Entrepreneurs'

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Responsible Sourcing
• Diversity & Inclusion
• Employee Well-being
• Social Impact

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, ISO 14064-1

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Announced a -40% by 2030 global target to reduce Scope 1 and 2 GHG emissions per sold chip compared to 2021.

Governance Achievements

• Established a global ESG governance model with ESG Core Team, ESG Strategy Team, and ESG Committee.

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Procurement ESG Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001

Certifications: ISO 14001

Sustainable Products & Innovation

• Products contributing to improved sustainability in the automotive industry (electrification, emission reduction, energy efficiency, safety, and reliability)
• Innovative sensing and driving solutions promoting energy efficiency in a clean energy-powered world
• Solutions for e-bikes, e-scooters, drones, and eVTOLs