Keysight Technologies, Inc.
Climate Impact & Sustainability Data (2018-11 to 2019-10, 2019-11 to 2020-10, 2021-11-01 to 2022-10-31, 2022-11 to 2023-10)
Reporting Period: 2018-11 to 2019-10
Environmental Metrics
Total Carbon Emissions:211,759.22 tCO2e/year
Scope 1 Emissions:18,074 tCO2e/year
Scope 2 Emissions:75,180.8 tCO2e/year
Scope 3 Emissions:102,594.97 tCO2e/year
Renewable Energy Share:1.15%
Total Energy Consumption:248512.53 MWh/year
Water Consumption:802.02 megaliters/year
Waste Generated:2361.03 metric tons/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- Economic Performance
- Market Presence
- Indirect Economic Impacts
- Procurement Practices
- Anti-corruption
- Anti-competitive Behavior
- Materials
- Energy
- Water
- Biodiversity
- Emissions
- Effluents and Waste
- Environmental Compliance
- Supplier Environmental Assessment
- Employment
- Labor/Management Relations
- Occupational Health and Safety
- Training and Education
- Diversity and Equal Opportunity
- Non-discrimination
- Freedom of Association and Collective Bargaining
- Child Labor
- Forced or Compulsory Labor
- Security Practices
- Rights of Indigenous Peoples
- Human Rights Assessment
- Local Communities
- Supplier Social Assessment
- Customer Health and Safety
- Marketing and Labeling
- Customer Privacy
- Socioeconomic Compliance
Environmental Achievements
- Achieved 17.89% water conservation exceeding the target of 15% by the end of FY20 (using FY15 as baseline)
- 14.47% reduction in GHG emissions compared to the baseline year of FY18
- Implemented energy conservation projects including optimization of lighting controls and fixtures, infrastructure upgrades for chiller efficiency
Social Achievements
- 100% of employees completed SBC training
- Penang manufacturing operation completed an internal Labor & Ethics and Responsible Business Alliance (RBA) Validated Assessment Program (VAP) assessment with zero nonconformances in labor
- Implemented various employee training and development programs through Keysight People University and Keysight Leadership Model (KLM) training
Governance Achievements
- Maintained internal policies and procedures supporting its tax control framework
- Implemented a strong governance structure with documented processes to ensure compliance with environmental laws and requirements
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Achieve 15% water conservation by end of FY20 (using FY15 as baseline)
Environmental Challenges
- Data collection difficulties due to global and varied manufacturing processes
- Supply chain disruptions due to utility provider's Public Safety Power Shutoff (PSPS)
Mitigation Strategies
- Developed alternative sourcing strategies
- Operated on-site generators to provide supplemental power during PSPS
Supply Chain Management
Supplier Audits: 2 on-site audits in FY19; 148 supplier compliance questionnaires in FY19
Responsible Procurement
- Supplier Code of Conduct
- Purchase Order Terms and Conditions
- General Specifications for Environment
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather (wildfires)
Transition Risks
- Regulatory changes
Opportunities
- Development of energy-efficient products and services
Reporting Standards
Frameworks Used: GRI Standards: Core option
Certifications: ISO 14001:2015, ISO 9001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Handheld products with improved battery life and measurement capabilities; energy-efficient power supplies
Awards & Recognition
- Awards for water efficiency programs at Santa Rosa and Colorado Springs sites
Reporting Period: 2019-11 to 2020-10
Environmental Metrics
Total Carbon Emissions:87206.2 tCO2e
Scope 1 Emissions:13,211 tCO2e
Scope 2 Emissions:73,995.2 tCO2e
Scope 3 Emissions:72,107.87 tCO2e
Renewable Energy Share:1.1%
Total Energy Consumption:275730.83 m3
Water Consumption:767.34 megaliters
Waste Generated:1777.29 metric tons
Carbon Intensity:Not disclosed
ESG Focus Areas
- Economic Performance
- Market Presence
- Indirect Economic Impacts
- Procurement Practices
- Anti-corruption
- Anti-competitive Behavior
- Materials
- Energy
- Water
- Biodiversity
- Emissions
- Effluents and Waste
- Environmental Compliance
- Supplier Environmental Assessment
- Employment
- Labor/Management Relations
- Occupational Health and Safety
- Training and Education
- Diversity and Equal Opportunity
- Non-discrimination
- Freedom of Association and Collective Bargaining
- Child Labor
- Forced or Compulsory Labor
- Security Practices
- Rights of Indigenous Peoples
- Human Rights Assessment
- Local Communities
- Supplier Social Assessment
- Customer Health and Safety
- Marketing and Labeling
- Customer Privacy
- Socioeconomic Compliance
Environmental Achievements
- Achieved 18.9% water conservation (exceeding the 15% target)
- 6.11% reduction in GHG emissions compared to FY19 baseline
- Santa Rosa and Colorado Springs sites won multiple awards for water efficiency programs
Social Achievements
- 100% of employees completed SBC training
- Launched Fostering Inclusion and Diversity program
- Maintained nearly 1:1 salary ratio worldwide of women to men
Governance Achievements
- No confirmed incidents of corruption
Climate Goals & Targets
Long-term Goals:
- Net Zero Emissions
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Supply chain disruptions due to climate events (e.g., PSPS)
- Data collection difficulties due to global and varied manufacturing
- Potential negative environmental impact identified at one supplier related to water management
Mitigation Strategies
- Developed alternative sourcing strategies
- Implemented corrective actions at the supplier with water management issues
- Triggered 137 supplier compliance questionnaires to ensure greater environmental and social compliance
Supply Chain Management
Supplier Audits: 1 supplier audited for environmental impacts; 137 supplier compliance questionnaires triggered
Responsible Procurement
- Supplier Code of Conduct
- Purchase Order Terms and Conditions
- General Specification for the Environment
Climate-Related Risks & Opportunities
Physical Risks
- Volatile changes in weather conditions (wildfires, floods, etc.)
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products and services
Reporting Standards
Frameworks Used: GRI Standards: Core option
Certifications: ISO 14001:2015, ISO 9001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Energy-efficient handheld products
Awards & Recognition
- Platinum Status on RBA Validated Assessment Program (Malaysia)
- Gold Level LEED certification (Atlanta, Georgia)
Reporting Period: 2021-11-01 to 2022-10-31
Environmental Metrics
Scope 1 Emissions:12,403.00 t CO2e
Scope 2 Emissions:81,391.00 t CO2e (market-based)
Scope 3 Emissions:3,254,047.00 t CO2e
Renewable Energy Share:2.5%
Total Energy Consumption:842,949 GJ
Water Consumption:710.87 Ml
Waste Generated:1,886.30 t
ESG Focus Areas
- Environmental Sustainability
- Social Impact
- Ethical Governance
Environmental Achievements
- Installed a 5.8-megawatt peak rooftop solar array at the Penang, Malaysia campus, providing approximately 7900 MWh annually of renewable electricity.
- Completed energy reduction projects resulting in an estimated 3500 MWh of annual energy savings.
Social Achievements
- Exceeded underrepresented minority hiring goal in the U.S. (49.1% of new hires were underrepresented minorities).
- Increased STEM education reach, engaging more than 798,000 students.
Governance Achievements
- No material negative impacts to the income statement from CSR-related topics.
Climate Goals & Targets
Long-term Goals:
- Achieve net zero emissions in company operations by the end of fiscal year 2040.
- Achieve 100% renewable energy by the end of fiscal year 2040.
- Achieve 20% energy reduction (per FY19 baseline) by the end of fiscal year 2040.
Medium-term Goals:
- Achieve 55% renewable energy by the end of fiscal year 2030.
- Achieve 10% energy reduction (per FY19 baseline) by the end of fiscal year 2030.
Short-term Goals:
- Engage 660,000 students through STEM education in FY2023.
- 33.6% of global new hires are women in FY2023.
- 50.1% of U.S. new hires are underrepresented minorities in FY2023.
- Zero material negative impacts to the income statement from CSR-related topics in FY2023.
- $250M in value committed to strengthening communities in FY2023.
Environmental Challenges
- Falling short of the goal for women representation in global new hires (32.6%).
- Supply chain disruptions due to climate events (implied by increased insurance premiums).
Mitigation Strategies
- Implementing process improvements in human rights and labor management, supply chain CSR commitments, and DEI program.
- Expanding internal reporting to improve transparency and address stakeholder inputs.
- Developing alternative sourcing strategies (implied by increased insurance premiums).
Supply Chain Management
Supplier Audits: 15
Responsible Procurement
- Supplier Code of Conduct
- General Specification for the Environment (GSE)
- Conflict Minerals Statement
- Counterfeit Parts Prevention Program
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (wildfires, floods, etc.)
Opportunities
- Development of energy-efficient products and solutions for clean technologies.
Reporting Standards
Frameworks Used: GRI, SASB, TCFD
Certifications: ISO 14001:2015, ISO 45001:2018
Third-party Assurance: Apex Companies, LLC
Sustainable Products & Innovation
- Solutions for clean technologies (automotive, energy, etc.)
Awards & Recognition
- Dow Jones Sustainability Index North America
- MSCI ESG Leaders Indexes
- FTSE4Good Index Series
- ITI Diversity, Equity and Inclusion Award
- EcoVadis Platinum Medal
- JUST Capital Top 100 U.S. Companies Supporting Healthy Families and Communities
- JUST Capital Top 100 America’s Most JUST Companies
Reporting Period: 2022-11 to 2023-10
Environmental Metrics
Total Carbon Emissions:3,647,557 tCO2e/year
Scope 1 Emissions:16,161 tCO2e/year
Scope 2 Emissions:84,493 tCO2e/year
Scope 3 Emissions:3,631,326 tCO2e/year
Renewable Energy Share:3.45%
Total Energy Consumption:925,909 GJ/year
Water Consumption:874.14 thousand m³/year
Waste Generated:1,919.66 tons/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- Economic Performance
- Market Presence
- Indirect Economic Impacts
- Procurement Practices
- Anti-corruption
- Anti-competitive Behavior
- Tax
- Materials
- Energy
- Water and Effluents
- Biodiversity
- Emissions
- Waste
- Supplier Environmental Assessment
- Employment
- Labor/Management Relations
- Occupational Health and Safety
- Training and Education
- Diversity and Equal Opportunity
- Non-discrimination
- Freedom of Association and Collective Bargaining
- Child Labor
- Forced or Compulsory Labor
- Security Practices
- Rights of Indigenous Peoples
- Local Communities
- Supplier Social Assessment
- Customer Health and Safety
- Marketing and Labeling
- Customer Privacy
Environmental Achievements
- Reduced energy consumption by 10,658 MWh
- Diverted 100% of food waste from landfill at Penang, Malaysia site (11.53 tons), creating 3.4 tons of compost.
Social Achievements
- 100% of employees completed SBC training.
- Expanded core DEI training to all employees (100% completion of Working Inclusively course).
Governance Achievements
- Established a robust clawback policy that applies to both cash incentives and equity awards.
Climate Goals & Targets
Long-term Goals:
- Achieve net zero emissions in company operations (scope 1 and 2) by the end of fiscal year 2040.
- By the end of fiscal year 2040 – 100% renewable electricity and 20% absolute energy reduction (fiscal year 2019 baseline).
Medium-term Goals:
- By the end of fiscal year 2030 – 55% renewable electricity and 10% absolute energy reduction (fiscal year 2019 baseline).
- 73% of Keysight's customers by emissions covering use of sold products, will have science-based targets by fiscal year 2028.
Short-term Goals:
- Reduce absolute scope 1 and 2 GHG emissions 42% by fiscal year 2030 from a fiscal year 2021 base year.
Environmental Challenges
- Increased risks of wildfire affecting Keysight offices and facilities.
- Increased cost of and access to raw materials due to clean technology transition.
- Potential for decreased revenue due to customer preference shifts towards lower energy-consuming products.
Mitigation Strategies
- Crisis management efforts, landscape maintenance, fire breaks, security monitoring, Wildfire Management Plan.
- Updating supplier strategies, improving prediction models for resources, evolving conflict mineral metrics.
- Improving measurement of energy consumption, identifying energy savings opportunities, increasing product energy efficiency.
Supply Chain Management
Supplier Audits: 9 suppliers subject to environmental impact assessments in 2023
Responsible Procurement
- Supplier Code of Conduct
- General Specification for the Environment (GSE)
- Restricted Parties List screening
- Financial health check of suppliers
- Small Business/Supplier Diversity Program (US)
Climate-Related Risks & Opportunities
Physical Risks
- Wildfires
Transition Risks
- Increased cost of raw materials
- Customer preference shifts to lower-emission products
Opportunities
- Access to new markets in clean technology (e.g., EVs)
Reporting Standards
Frameworks Used: GRI, SASB
Certifications: ISO 14001:2015, ISO 45001:2018
Third-party Assurance: Apex Companies LLC
Sustainable Products & Innovation
- EV battery module test solution