Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Switched one Edinburgh, UK site to a 100% renewable energy purchasing contract, resulting in 700 metric tons CO2e savings.

Social Achievements

• Not disclosed

Governance Achievements

• Established an Environmental, Social and Governance (ESG) Executive level Steering Committee to drive ESG integration across the business. The Governance and Nominating Committee (GNC) of the Board of Directors oversees the Company’s development and disclosure of policies and programs relating to corporate responsibility and sustainability, including environmental and social matters.

Climate Goals & Targets

Environmental Challenges

• Lack of a formal process for identifying, assessing, and responding to climate-related risks and opportunities.
• Potential climate-related risks including business continuity risks due to severe weather, stakeholder pressure for climate engagement, potential regulations, and increased energy costs due to carbon pricing.

Mitigation Strategies

• Developing a climate risk management process, including a climate risk assessment and review of relevant risks.
• Assembling a cross-functional stakeholder group to identify and assess climate risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of severe weather events, flooding and/or drought

Transition Risks

• Potential for regulations and increased energy costs due to carbon pricing

Opportunities

• Advancing leadership in the low-power mobile market through energy-efficient component design, benefits from emissions reduction initiatives, and reputational improvement through proactive communications.

Reporting Standards

Frameworks Used: CDP, Taskforce for Climate Related Financial Disclosures (TCFD)

Certifications: Null

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

• Human Rights
• Supply Chain Responsibility
• Ethical Sourcing
• Anti-Slavery
• Anti-Human Trafficking

Social Achievements

• Continued engagement with significant customers to align requirements regarding the elimination of involuntary labor
• Continued implementation of Code assessments with key suppliers
• Continued practice of the United Nations’ Sustainable Development Goals to improve the health, well-being, and safety of individuals and promote equality in the workforce
• Continued to provide financial support to Polaris, a non-profit organization dedicated to ending labor trafficking in North America
• Continued to collaborate with the RBA to promote and protect the rights of vulnerable workers, including participation with the Responsible Labor Initiative

Governance Achievements

• Published second Environmental, Social and Governance (ESG) report setting out both short- and long-term commitments related to ESG and putting in place structures for accountability
• Board of Directors’ Governance and Nominating Committee oversees the development and disclosure of policies and programs relating to corporate responsibility and sustainability, including actions to eliminate modern slavery

Climate Goals & Targets

Environmental Challenges

• Risk of slavery and human trafficking in supply chains

Mitigation Strategies

• Processes to identify, assess, mitigate, and monitor potential risk areas in supply chains; whistleblowing policies and compliance hotline; internal policies (Recruitment Policy, Policy Statement on Human Rights, Conflict Minerals Policy, Code of Business Conduct, Supplier Code of Conduct); membership in the Responsible Business Alliance (RBA); supplier audits; signed acknowledgements from direct suppliers; compliance with the UK Modern Slavery Act 2015 and the California Transparency in Supply Chains Act of 2010; compliance with the US Government’s Federal Acquisition Regulation on Combating Trafficking in Persons; training for all personnel on Code of Conduct

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Compliance with laws, rules, and regulations of operating countries
• International standards for social and environmental responsibility and business ethics

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK Modern Slavery Act 2015, California Transparency in Supply Chains Act of 2010, UN Sustainable Development Goals

Environmental Metrics

ESG Focus Areas

• Responsible Supply Chain
• Climate, Greenhouse Gas (GHG) Emissions, and Energy
• Diversity, Equity, and Inclusion
• Developing and Retaining Employees
• Employee Health and Safety
• Community Engagement
• Governance and Ethics

Environmental Achievements

• Sourced renewable electricity for Austin and U.K. facilities
• Achieved 79% renewable energy share of total energy use in FY22 (up from 15% in FY21)
• Reduced Scope 1 and 2 GHG emissions by 66% in FY22 compared to FY21
• Completed first climate risk assessment
• Launched Cirrus Logic Environmental Action Network (CLEAN) employee resource group
• Donated 380+ computers to prevent landfill waste

Social Achievements

• Increased Women’s Leadership Team (WLT) membership by 41%
• Launched Leadership Development Series
• Expanded U.S. paid parental leave and offered surrogacy and adoption assistance
• Increased college tuition reimbursement program for U.S. employees from $6,000 to $10,000
• Employees volunteered over 880 hours
• Awarded $120,000 in scholarships to women in STEM undergraduate programs

Governance Achievements

• Reported according to Nasdaq’s Board Diversity Rule
• Strengthened cybersecurity controls
• Enhanced employee engagement

Climate Goals & Targets

Environmental Challenges

• Higher employee turnover compared to previous years
• Supply chain disruptions due to potential climate events
• Uncertainty surrounding future prices for renewable energy and other emissions reduction investments

Mitigation Strategies

• Empowering a diverse and inclusive workplace
• Commitment to employee development
• Dual-sourcing strategies for high-volume products
• Business continuity strategy and engagement with subcontractors
• Investing in renewable energy to reduce future costs

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (based on RBA Code of Conduct and customer requirements)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., drought, extreme precipitation)
• Power or water shortages
• Fires

Transition Risks

• Increased costs associated with renewable energy and carbon pricing policies

Opportunities

• Reducing future costs as fossil fuel prices increase

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Apex Companies, LLC

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action

Initiatives described in UNSDG Index

Awards & Recognition

• Top award from the Austin Chamber of Commerce for Employee Health and Wellness

Environmental Metrics

ESG Focus Areas

• Responsible Supply Chain
• Climate, GHG Emissions, and Energy
• Diversity and Inclusion
• Talent Development
• Environment, Health, and Safety
• Community Investment and Engagement
• Governance and Ethics

Environmental Achievements

• Lowered Scope 1 and 2 greenhouse gas emissions by 12 percent from the prior year, primarily due to the procurement of additional renewable energy.
• Received ISO 14001 certification after establishing an environmental policy and management system.
• Joined Apple’s Supplier Clean Energy Program.

Social Achievements

• Named a Top Workplace by the Austin American-Statesman for the 14th consecutive year.
• Included on the Barron’s List of 100 Most Sustainable Companies for the fourth consecutive year.
• Supported employee resource groups (ERGs) to build supportive communities.
• Enhanced U.S. benefits package to include hearing aid coverage, free telehealth, and a mobile application for managing chronic conditions.
• Added women’s health benefits in the U.K.

Governance Achievements

• Continued to embed ESG policies and practices into strategic operations and risk management activities.
• Engaged directly with investors, analysts, and stewardship teams on relevant topics.
• Achieved 100 percent completion rate for annual security awareness training for employees, officers, directors, and contractors.

Climate Goals & Targets

Environmental Challenges

• Increase in overall electricity use due to the addition of several new facilities.
• Upstream Scope 3 emissions account for 99 percent of total Scope 1, 2, and upstream Scope 3 footprint.
• Uncertainty surrounding future prices for renewable energy and other emissions reduction investments.
• Potential future costs associated with renewable energy prices and carbon pricing policies.
• Potential disruption in manufacturing supply chain due to climate-related events.

Mitigation Strategies

• Increased total renewable electricity consumption by 16 percent from the prior year.
• Collaborating with suppliers to improve their overall environmental performance and encourage them to increase renewable energy procurement.
• Incorporating anticipated costs to procure energy attribute certificates into financial planning.
• Making investments in renewable energy to reduce future costs as fossil fuel prices increase.
• Dual-sourcing strategies for certain high-volume products.
• Engaging with suppliers to better understand their existing sustainability practices and identify areas for collaboration and continuous improvement.
• Implementing a new program to conduct additional due diligence and further assess potential risk in the supply chain.
• Selecting facilities with geographic diversity where possible; dual sourcing for assembly and test where possible; and bringing up new fabs outside Taiwan.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy Statement
• Anti-Slavery and Human Trafficking Statement
• Policy Statement on Human Rights

Climate-Related Risks & Opportunities

Physical Risks

• High-heat events
• power or water shortages
• fires
• rising sea levels
• changes in storm patterns or intensities
• other extreme weather conditions
• increased severity of acute events such as cyclones
• increased frequency, severity, and/or duration of drought conditions

Transition Risks

• potential future costs associated with renewable energy prices and carbon pricing policies

Opportunities

• reduce future costs as fossil fuel prices increase in the face of carbon pricing policies

Reporting Standards

Frameworks Used: SASB, GRI, TCFD, CDP

Certifications: ISO 14001

Third-party Assurance: Apex Companies, LLC

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 12
• Goal 13
• Goal 15

Awards & Recognition

• Top Workplace by the Austin American-Statesman
• Barron’s List of 100 Most Sustainable Companies

Environmental Metrics

ESG Focus Areas

• Responsible Supply Chain
• Climate, Greenhouse Gas (GHG) Emissions, and Energy
• Diversity, Equity, and Inclusion
• Developing and Retaining Employees
• Employee Health and Safety
• Community Engagement
• Governance and Ethics

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 17 percent from the prior year, primarily due to the procurement of additional renewable energy.
• Developed a global renewable energy strategy, including the purchase of renewable energy certificates.

Social Achievements

• Increased U.S. short-term disability benefits and lowered the eligibility age for family mental health support.
• Voluntary turnover for FY23 was eight percent, outperforming the industry benchmark.

Governance Achievements

• Continued to embed ESG into strategic operations and risk management activities.
• Engaged directly with investors, analysts, and stewardship teams on relevant topics.

Climate Goals & Targets

Environmental Challenges

• Increased electricity consumption due to employees returning to the office.
• Increased business travel emissions as routine travel resumed.
• Potential physical impacts of climate change on third-party subcontractors.
• Potential future costs associated with renewable energy prices and carbon pricing policies.

Mitigation Strategies

• Expanded renewable energy procurement to cover part of data center electricity consumption.
• Improved calculation methodologies for Scope 3 emissions and expanded disclosures.
• Dual-sourcing strategies for high-volume products.
• Investing in renewable energy to reduce future costs as fossil fuel prices increase.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (based on RBA Code of Conduct and customer requirements)

Climate-Related Risks & Opportunities

Physical Risks

• High-heat events
• Power or water shortages
• Fires
• Rising sea levels
• Changes in storm patterns
• Extreme weather conditions
• Drought
• Extreme precipitation

Transition Risks

• Increased costs from renewable energy and carbon pricing policies

Opportunities

• Reduced future costs as fossil fuel prices increase

Reporting Standards

Frameworks Used: SASB Semiconductors Standard (2018), GRI Universal Standards (2021), TCFD recommendations, CDP Climate Change Questionnaire, UN SDGs

Certifications: ISO 9001, ISO 14001 (suppliers)

Third-party Assurance: Apex Companies, LLC (limited assurance)

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

Various initiatives described throughout the report contribute to these goals.