Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Waste Management
• Workforce Diversity & Inclusion
• Supply Chain Responsibility
• Intellectual Property Protection
• Anti-competitive Behavior

Environmental Achievements

• Reduced combined Scope 1 and 2 GHG emissions per unit of production by 36% since 2018
• Reuses, recycles, or recovers 84% of its total waste as of 2020
• 64% of the company’s revenue comes from low-carbon (energy efficient) products

Social Achievements

• No monetary losses from legal proceedings regarding employee health and safety violations in 2020
• No suppliers terminated due to non-compliance with social issues in 2020
• Increased board of directors female representation to 37.5% in 2020 from 14% in 2018
• Laid out six DEI commitments for 2021 including increasing representation, driving equitable pay, strengthening inclusion, advocating for the underrepresented, committing a percentage of cash investments to be managed by minority-owned firms, and increasing diversity among its suppliers

Governance Achievements

• Proactive IT measures in place to monitor and identify suspicious activity, instrumental in a case regarding the suspected theft and misuse of Micron’s intellectual property

Climate Goals & Targets

Environmental Challenges

• Scope 1 and 2 emissions from energy-intensive manufacturing processes
• Global water stress impacting fab locations
• Hazardous waste generation
• Human rights risks in global supply chain
• Competition for skilled workforce
• Regulatory uncertainty and carbon pricing mechanisms
• Potential for anti-competitive behavior
• Shareholder lawsuits regarding diversity commitments

Mitigation Strategies

• Transitioning to lower global warming potential gases
• Goal of 100% renewable energy in the US by 2025
• Goal of reusing, recycling, or restoring 100% of water used in operations by 2030 (75% by 2030 interim goal)
• Goal of recycling or recovering 100% of hazardous waste by 2030 (95% by 2030 interim goal)
• Responsible Business Alliance (RBA) audit process for supplier monitoring
• ISO 45001 safety and management systems certification for manufacturing locations
• Code of Business Conduct and Ethics
• Membership with the Responsible Business Alliance (RBA)
• Responsible Minerals Policy and membership with the Responsible Minerals Initiative (RMI)
• Diversity and Inclusion (D&I) initiatives and commitments

Supply Chain Management

Supplier Audits: 1400 suppliers assessed in 2020 (up from 900 in 2019)

Responsible Procurement

• Responsible Business Alliance (RBA) audit process
• Responsible Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heat waves
• Drought

Transition Risks

• Carbon pricing mechanisms

Opportunities

• Development of energy-efficient products

UN Sustainable Development Goals

• Decent Work and Economic Growth
• Industry, Innovation & Infrastructure
• Responsible Consumption & Production

Sustainable Products & Innovation

• Energy-efficient products (64% of revenue)

Environmental Metrics

ESG Focus Areas

• Human Capital
• Governance
• Environmental
• Social
• Responsible Investing

Environmental Achievements

• Trees saved annually through recycling program: 609
• Metric tons avoided with hybrid work policy: 609

Social Achievements

• Launched Diversity, Equity, and Inclusion (DEI) program, Sage ENGAGE, with three committees: Professional Development, Team Building, and Community Service
• Employee charitable donations: $240,000
• Employee volunteer hours: 1,485
• 25 non-profit organizations engaged with
• Improved staff health benefits
• Created a range of self-improvement educational programs and social gatherings

Governance Achievements

• Expanded proprietary Sage ESG Leaf Score® rating system to include securitized and sovereign debt sectors
• Introduced comprehensive Impact Bond strategies
• Launched ESG-optimized cash and short-term asset management strategies
• Augmented internal research capabilities through AI-assisted data analysis
• Introduced improved Sustainable Development Goals (SDGs) portfolio-alignment analysis and reporting

Climate Goals & Targets

Environmental Challenges

• Global pandemic
• War
• Political unrest over responsible investing
• Women's reproductive rights
• Water scarcity

Mitigation Strategies

• Recommitted to broadening reach and deepening impact
• Maintained flexible work environment
• Improved staff health benefits
• Created self-improvement programs and social gatherings
• Maintained and enhanced initiatives to underscore commitment to responsible investing and ESG risk analysis

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Awards & Recognition

• 2022 Texas “We Hire Vets” award
• Military Friendly® Employer with Bronze distinction