Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Environment
• Ethics and Governance
• Community Partnership

Environmental Achievements

• 17% reduction in tonnes of CO2 emissions per revenue dollar from 2009 to 2011
• 25% reduction in m3 of water consumption per revenue dollar from 2009 to 2011
• 24% reduction in tonnes of hazardous waste per revenue dollar from 2009 to 2011
• 12% reduction in tonnes of non-hazardous waste per revenue dollar from 2009 to 2011

Social Achievements

• Invested US$9 million to enhance employee facilities in Zhuhai, Guangdong Province, resulting in increased employee engagement and reduced attrition.
• Manaus, Brazil facility rated as one of the top corporations to work for, with less than 0.1 percent attrition rate annually.
• Implemented “Mutual Respect” program in China to promote team building and a culture of trust and respect.
• Established extensive labor relations programs to build a positive work environment.
• Established career enhancement programs to facilitate employee career progression.

Governance Achievements

• Implemented INTEGRITY™ campaign to improve employee understanding of ethics and integrity.
• Established Flextronics’ Ethics Hotline for reporting suspected business misconduct.
• Implemented a five-year initiative to train employees on the Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• High employee turnover in China due to changing workforce demographics and increased job options.
• Delayed or partial implementation of the CSER management system in some Asian sites.
• Delayed or partial adoption of health and safety best practices in some Asian sites.
• Structural and systemic issues in some countries affecting CSER implementation.
• Excessive overtime hours in China due to fluctuating demand and seasonal leave.

Mitigation Strategies

• Proactive steps to respond to changing workforce demographics in China, including programs to understand, inspire, and retain employees.
• Regular visits to sites by corporate CSER leads to provide guidance and coaching.
• Development of a toolkit containing policies, standards, and procedures to aid sites in strengthening their management systems.
• Continuous review of Multek operations to avoid future incidents related to micro drill bits.
• Collaboration with suppliers to address excessive working hour issues.

Supply Chain Management

Supplier Audits: 83 initial audits and 62 follow-up audits in 2011 (primarily in China)

Responsible Procurement

• Flextronics Supplier Code of Conduct
• EICC Code of Conduct compliance
• Conflict Minerals Due Diligence program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EICC, GBI, UN Global Compact

Certifications: ISO 14001 (planned for all sites)

Sustainable Products & Innovation

• Lead-free products
• Energy-efficient power supply and thermal solutions

Awards & Recognition

• 100 Best Human Resource Management (HRM) Companies Award
• Business Superbrands Award
• Leading HR Practice Award
• National Corporate Culture Award
• Best Talent Management Strategy at the World HRD Congress
• 2011 Emerging Asia Supply Chain Awards
• The American Business Awards “Stevie Award”,
• Customer Visionary Award
• TRIGOS Award
• Award for Best HR Strategy In Line With Business
• Labor Excellence Award
• Asia’s Best Employer Brand Award
• CSR Excellence Award
• China Golden Bee Award
• Municipal Government Award
• Environment Award
• Safety Management Advanced Unit Award
• Lifetime Achievement Award
• Guangdong Province Law-abiding and Excellent Corporation of Using Labor
• Zhuhai City Labor Relations Harmonious Enterprise
• Advanced Units of Work-related Injury Insurance of Zhuhai
• Worker Compensation Risk Manager of the Year

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Community
• Supply Chain

Environmental Achievements

• Achieved CO2 emissions intensity goal: 26% reduction (2014 vs 2009)
• 96% of Flex sites recycled their waste and 14% sent zero waste to landfill
• Recycled 60% of total waste in 2014
• Increased recycled water by 48% in comparison with 2013 (representing more than 182,000m3)
• Generated more than 10.6 millions of KWh on site from solar panels
• Due to business travel reduction program, achieved 25% reduction in Scope 3 CO2 emissions in comparison with CY2013

Social Achievements

• Injury and Occupational Diseases Rate decreased by 10% (2014 vs 2012)
• Lost Time Cases Rate decreased by 13.6% (2014 vs 2012)
• As of December 31, 2014, 41% of our sites had more than 100 days without accidents
• Eleven sites across the world had zero injuries and occupational diseases during CY2014
• EMEA and Asia decreased their lost time rate by 14% (2014 vs 2013)
• Americas and Asia decreased their Injury and Occupational Diseases Rate by 17 and 27% respectively (2014 vs 2012)
• Zero work-related fatalities
• Launched new service delivery model to a majority of our employees and launched the Flex Leadership Development Program
• Received 62% favorability of HR support with 62% of employees saying their HR support was “Good” or “Excellent” overall
• Launched new Labor and Human Rights Metrics Center in the Americas to track EICC® working hours and rest day compliance

Governance Achievements

• Successfully implemented the Flex Integrated CSER Management System (Flex Pledge) in all Flex sites
• 51% of total sites were physically audited as part of Flex Pledge
• Our customers and local government recognized our CSER Local Programs
• At the end of calendar year 2014, Flex Pledge training completion was above target
• Improved our Compliance Investigation Process
• Released new global policies and trainings, including the new Code of Business Conduct & Ethics and the related Code and Anticorruption trainings
• Increased the number and effectiveness of compliance global communications

Climate Goals & Targets

Supply Chain Management

Supplier Audits: 314

Responsible Procurement

• CSER (EICC®) requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI™, SASB™, RAFI

Certifications: LEED®, R2

Awards & Recognition

• Three CSER Awards from Microsoft®
• Excellence in Education Local Community Support Award
• Top Treasury Team/Top Treasurer of the Year
• National Top of Companies 2014
• Ethics Seal of Approval
• R2 Certification
• LEED® Certification
• Flex listed as one of the Best Supply Chains in Asia Pacific
• IPC® Distinguished Committee Service Award
• Fortune Magazine’s Most Admired Companies
• Excellence in Project Management Award
• Product Innovation Award
• Supply Chain Excellence Award
• Manufacturing Partner of the Year Award
• Council of Supply Chain Management Professionals (CSCMP) 2014 Supply Chain Innovation Award™

Environmental Metrics

ESG Focus Areas

• People
• Community
• Environment
• Innovation
• Integrity
• Supply Chain

Environmental Achievements

• Reduced water withdrawn by over 1,400,000 m3 (11% reduction year-over-year)
• Reduced Scope 1 and Scope 2 CO2 emissions by over 43,000 tonnes
• Installed more than 22,500 LED light fixtures, saving 75,000,000 kWh/year and reducing CO2 emissions by 56,000 tonnes per year
• Utilized more than 30 MW of renewable energy at sites worldwide
• Supported the mitigation of over 63,000 CO2e through Certified Emission Reductions (CERs)

Social Achievements

• Reduced health and safety incident rate to 0.50 (12% annual reduction from 2016)
• Over 19,800 employees volunteered more than 59,000 hours globally
• Provided financial and emergency response relief to 6 locations affected by natural disasters
• Launched annual Earth Day Challenge with over 80,000 employee participants

Governance Achievements

• 98% of employees completed Code of Business Conduct and Ethics online training
• Addressed approximately 1,100 reports covering a variety of ethical issues

Climate Goals & Targets

Environmental Challenges

• Excessive working hours at some suppliers
• Global natural disasters impacting communities

Mitigation Strategies

• Working Hours Improvement Program to monitor and reduce excessive working hours
• Disaster relief provided through Flex Foundation and employee donations

Supply Chain Management

Supplier Audits: 101 initial and 68 follow-up on-site audits in 2017

Responsible Procurement

• Flex supplier training aligning with Responsible Business Alliance (RBA) standards
• Requirement for suppliers to have management systems for social and environmental activities

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• #4 Quality Education
• #7 Clean and Affordable Energy
• #8 Decent Work and Economic Growth
• #12 Responsible Consumption and Production

Alignment based on GRI, WBCSD and UN Global Compact: SDG Compass

Sustainable Products & Innovation

• BrightInsight™ intelligent IoT platform
• Solar trackers and energy storage systems
• Electric Vehicle charging stations
• Circular manufacturing processes by Sinctronics

Awards & Recognition

• Fortune World’s Seventh Most Admired Semiconductor Company
• FTSE4Good Index constituent
• EcoVadis Gold Recognition Level
• Various other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Environment
• Community
• Health and Safety
• Diversity, Equity, and Inclusion
• Labor Practices
• Customers
• Suppliers
• Ethics
• Governance

Environmental Achievements

• 14% reduction in operational emissions from 2019 baseline year
• Maintained position on CDP’s ‘A List’ for water security
• 94% total waste diverted from landfill (3% increase year over year)
• Avoided more than 19k metric tonnes of scope 1 and 2 CO2e emissions through energy management programs

Social Achievements

• 17% year-over-year reduction in safety incident rate
• 100% of employees had access to emotional and mental health programs (two years ahead of schedule)
• 22% female representation at director level and above globally
• 31% racial and ethnic diverse representation at director level and above in the U.S.

Governance Achievements

• 48% of specified customers had science-based targets
• 29% of preferred suppliers set GHG emission reduction targets
• ESG metric included in executive compensation program starting in FY2023

Climate Goals & Targets

Environmental Challenges

• Increased single-use product usage during the pandemic
• Increased absolute scope 1 and 2 emissions from 2020 to 2021 due to revenue growth
• Increased water withdrawn at sites in water-scarce areas by 7% from 2019 baseline
• Excessive working hours in some regions
• Challenges in conducting in-person certification audits due to COVID-19

Mitigation Strategies

• Developing an energy management strategy to account for growth and remain on track with GHG emission reduction commitments
• Implementing condensation collection system to increase recycled water efficiencies
• Creating a migrant worker procedure guide to mitigate forced labor risks
• Conducting remote supplier audits to maintain health and safety
• Implementing corrective actions based on supplier self-assessments and on-site audits

Supply Chain Management

Supplier Audits: 2,419 social and environmental assessments

Responsible Procurement

• Supplier code of conduct
• Supplier sustainability requirements
• RBA Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UN Sustainable Development Goals (SDGs), SASB, UN Global Compact (UNGC), Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: ISO 14001, ISO 45001, UL 2799 (Zero Waste to Landfill)

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives align with these goals through environmental stewardship, community investment, employee well-being, responsible labor practices, and supply chain sustainability.

Awards & Recognition

• FORTUNE magazine's World's Most Admired Companies
• CDP’s “A List” for water security
• Ericsson Supplier Sustainability Award
• S&P Global Sustainability Yearbook
• Platinum rating from EcoVadis
• Aon Healthiest Employer award (China)
• Top 100 Excellence Employer of China award (China)
• Gold HR Excellence awards (Malaysia)
• Sustainability & CSR Malaysia awards (Malaysia)
• CDP Supplier Engagement Leader
• Supply and Demand Chain Executive’s 2021 Green Supply Chain award
• Brandon Hall Group’s Human Capital Management Excellence Award

Environmental Metrics

ESG Focus Areas

• Forced Labor
• Human Trafficking
• Human Rights
• Supply Chain Responsibility
• Corporate Governance

Social Achievements

• 98% of employees completed Code of Business Conduct and Ethics training.
• 186 initial and 58 follow-up audits conducted on suppliers in high-risk regions in 2022.
• 15% of manufacturing sites were ‘RBA factory of choice’ certified as of 2022.

Governance Achievements

• Established a working group on forced labor with company subject matter experts and senior management.
• Regular Uyghur Forced Labor Prevention Act entity list verification.
• Board of Directors approved the Forced Labor and Human Trafficking Statement.

Climate Goals & Targets

Environmental Challenges

• Risk of forced labor and human trafficking in supply chain (considered 'considerable' risk).

Mitigation Strategies

• Implementation of RBA Code of Conduct and Flex’s Supplier Code of Conduct.
• Supplier Self-Assessment Questionnaires.
• Audits of suppliers and labor providers (average 244 audits annually).
• Supplier Corrective Action Plans (CAPs).
• Third-party audits through RBA’s Validated Assessment Program (VAP).
• Quarterly supplier trainings.
• Regular screening of suppliers.
• Reviews of supplier contracts to include human rights provisions.

Supply Chain Management

Supplier Audits: Average 244 audits per year (initial and follow-up)

Responsible Procurement

• RBA Code of Conduct
• Flex’s Supplier Code of Conduct
• Supplier Self-Assessment Questionnaires

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business and Human Rights, UN Global Compact, RBA Code of Conduct