Climate Change Data

Infinera Corporation

Climate Impact & Sustainability Data (2018, 2019, 2020, 2021, 2022, 2023)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:38,989 tCO2e (Scope 1 & 2)
Scope 1 Emissions:0.23 tCO2e
Scope 2 Emissions:38,755 tCO2e
Scope 3 Emissions:18,247 tCO2e
Renewable Energy Share:55%
Total Energy Consumption:95,819 MWh
Water Consumption:73,494 m3
Waste Generated:1570 metric tons (non-hazardous)
Carbon Intensity:0.48 tCO2e per square meter of operational space in 2018; 9.86 tCO2e per full-time equivalent employee in 2018

ESG Focus Areas

  • Business Ethics
  • Product Responsibility
  • Environmental Responsibility
  • Social Responsibility

Environmental Achievements

  • Sunnyvale facility powered with 100% carbon-free energy sources through partnership with Silicon Valley Clean Energy
  • 68% landfill diversion rate in Sunnyvale, CA and 100% in Pennsylvania

Social Achievements

  • Increased spend with Small Business Enterprises (SBEs) and Minority Business Enterprises (MBEs) by 2%
  • Launched Women at Infinera (WIN) initiative to support female employees
  • Expanded CPR/First Aid training

Governance Achievements

  • Updated Code of Business Conduct and Ethics
  • No confirmed breaches of Code of Business Conduct and Ethics in 2018
  • No formal grievances or legal claims filed in 2018

Climate Goals & Targets

Short-term Goals:
  • Reduce water use by 3% normalized to headcount (not met in 2018)
  • Reduce Scope 1 and 2 Greenhouse Gas Emissions by 3% normalized to headcount (not met in 2018)
  • Reduce paper cup usage by 50% (exceeded in 2018)

Environmental Challenges

  • Increase in water consumption normalized to headcount in 2018
  • Increase in Scope 1 and 2 Greenhouse Gas Emissions normalized to headcount since 2015
  • Potential financial, regulatory and continuity impacts of climate change on business (flooding, extreme weather, drought)
Mitigation Strategies
  • Implementing energy efficiency projects (saving 2,123 MWh since 2014)
  • Adding new AC controls to integrate outside air into AC system
  • Adding HVAC unit with advanced controls to reduce energy consumption
  • Installing electric vehicle charging stations
  • Enhancing federal commuter benefit program
  • Supporting bike-to-work initiatives
  • Implementing a comprehensive environmental program to maintain compliance with regulations

Supply Chain Management

Supplier Audits: 56 supplier reviews, 32 on-site audits in 2018

Responsible Procurement
  • Supplier Code of Conduct requiring ethical standards, respect for employee rights, and environmental stewardship; annual commitment renewal from 100% of key suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Extreme weather conditions
  • Drought
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC Principles

Certifications: ISO 14001

Sustainable Products & Innovation

  • Energy-efficient transponders and muxponders (CX-1200, XT-3300, XTM Series); variable-speed cooling fans (DTN-X); Infinite Capacity Engine (ICE4)

Awards & Recognition

  • Gold rating from EcoVadis for three consecutive years

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:44,586 tCO2e/year
Scope 1 Emissions:666 tCO2e/year
Scope 2 Emissions:19,346 tCO2e/year
Scope 3 Emissions:24,574 tCO2e/year
Renewable Energy Share:46% of total energy use (Sunnyvale site)
Total Energy Consumption:70,706 MWh/year
Water Consumption:Not disclosed
Waste Generated:430 tons/year (non-hazardous); 101.22 tons/year (hazardous)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Greenhouse gas emissions
  • Energy management
  • Waste and hazardous materials management
  • Environmental compliance
  • Employee health and safety
  • Employee development and engagement
  • Diversity and inclusion
  • Labor practices and human rights
  • Supply chain management
  • Business ethics
  • Transparency and reporting
  • Data security
  • Product safety

Environmental Achievements

  • Sunnyvale site obtained more than 50% of its energy from carbon-free sources through partnership with Silicon Valley Clean Energy
  • 20 percent increase in energy efficiency in Sunnyvale in 2019 due to HVAC improvements
  • Reduced chemical bottle recycling by over 60% by switching to 55-gallon drums in PIC fabrication plant
  • Reduced water usage through shorter rinsing processes in PIC fabrication plant

Social Achievements

  • Improved HR information system to more accurately collect and monitor workforce data, improving compensation equity globally
  • Women at Infinera (WIN) employee resource group expanded its efforts throughout North America
  • 15 interns participated in CPR and First Aid training at Sunnyvale, CA site

Governance Achievements

  • Developed a cohesive ethics and compliance program with unified trainings and comprehensive global policies
  • Revamped ethics reporting process rolled out globally with awareness campaign and training
  • Updated whistleblower policy to explicitly state a zero-tolerance policy for retaliation

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Work towards a 50% GHG reduction in our supply chain by 2030
  • Increase supplier diversity spend every year from 2020-2022
Short-term Goals:
  • Achieve zero workplace injuries in 2020-2022

Environmental Challenges

  • Integrating two company cultures (Infinera and Coriant)
  • Managing a global supply chain with inherent risks (conflict minerals, human rights, labor, regulatory compliance)
  • Potential financial, regulatory, and continuity impacts of climate change (flooding, extreme weather, drought)
Mitigation Strategies
  • Developed a cohesive ethics and compliance program
  • Robust management systems to identify and mitigate supply chain risks
  • Environmental management programs to mitigate climate change risks
  • Supplier audits and engagement forums to ensure accountability

Supply Chain Management

Supplier Audits: 61 supplier reviews; 27 on-site audits in 2019

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier screening for compliance
  • Annual supplier commitment renewal
  • GHG emissions reporting to CDP

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Extreme weather conditions
  • Drought
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB

Certifications: OHSAS 18001 (Sunnyvale, Allentown, and Stockholm facilities), TL 9000 (since 2007)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

  • Energy-efficient products with AI and machine learning features for bandwidth optimization

Awards & Recognition

  • EcoVadis Gold rating (four years in a row)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:46,510 tCO2e/year
Scope 1 Emissions:1,755 tCO2e/year
Scope 2 Emissions:20,884 tCO2e/year
Scope 3 Emissions:23,870 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:67,778 MWh/year
Water Consumption:31,584 m3/year
Waste Generated:406 metric tons/year (non-hazardous); 95.1 metric tons/year (hazardous)
Carbon Intensity:0.38 tCO2e per square meter of operational space; 15.05 tCO2e per full-time equivalent employee

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Responsible Supply Chain
  • Employee Health & Safety
  • Business Ethics
  • Data Security

Environmental Achievements

  • Relocated headquarters to reduce employee commute time by 18%
  • Improved data collection protocols for global emissions
  • Significant e-waste diverted from landfill during headquarters relocation (over 77,967 lbs)

Social Achievements

  • Launched Infinera ALL-In, a company-wide D&I initiative including a global employee survey
  • Increased ethics training participation rate to 95%
  • Achieved a decline in workplace injuries (though increased due to conservative COVID-19 reporting)

Governance Achievements

  • Increased disclosure of policies and principles
  • Updated discrimination and harassment policy for global continuity
  • No confirmed cases of breaches to Code of Business Conduct and Ethics in 2020

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • 50% reduction in Scope 1, 2, and 3 greenhouse gas emissions by 2030
Short-term Goals:
  • Report ESG efforts against the UN Sustainable Development Goals by 2022

Environmental Challenges

  • Supply chain disruptions due to COVID-19
  • Data collection inconsistencies due to acquisitions
  • Need for improved data on cobalt as a potential conflict mineral
Mitigation Strategies
  • Implemented robust safety management systems and employee-first culture
  • Established global baselines for environmental data
  • Planning to collect data on cobalt in supply chain in 2021

Supply Chain Management

Supplier Audits: 50/year

Responsible Procurement
  • Supplier Code of Conduct
  • ESG-related criteria in supplier audit checklists

Climate-Related Risks & Opportunities

Physical Risks
  • Supply chain interruption due to natural disasters
Transition Risks
  • Environmental regulations
  • Market shifts towards sustainable products
Opportunities
  • Increased market share due to strong environmental performance

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD

Certifications: TIA TL9000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Energy-efficient products with improved gigabit per kWh throughput

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:53,869 tCO2e/year
Scope 1 Emissions:559 tCO2e/year
Scope 2 Emissions:19,866 tCO2e/year
Scope 3 Emissions:33,444 tCO2e/year
Renewable Energy Share:100% at four main sites (Pennsylvania x2, Stockholm, Espoo); 100% at Lisbon (as of Sept 2021)
Total Energy Consumption:60,913 MWh/year
Water Consumption:23,526 m3/year
Waste Generated:433.38 tons/year (non-hazardous); 82.73 tons/year (hazardous)
Carbon Intensity:0.03 tCO2e per square foot of operational space; 16.53 tCO2e per full-time equivalent employee

ESG Focus Areas

  • Climate Action
  • Energy Management
  • Waste Management
  • Water Management
  • Diversity, Equity, and Inclusion
  • Human Rights
  • Employee Safety
  • Employee Development
  • Supply Chain Management
  • Business Ethics
  • Data Security
  • Product Safety
  • Transparency and Reporting

Environmental Achievements

  • Achieved a 13% reduction in energy consumption globally
  • Leveraged renewable energy sources for sites in Richardson, Portugal, and Pennsylvania.
  • Installed an additional hydrofluoric acid (HF) waste tank capacity at our Sunnyvale, CA fabrication facility
  • Consistently achieved an 80-90% recovery rate on shielding parts (30% increase from previous rate)

Social Achievements

  • Launched a global pilot of our mentorship program through our Women In Infinera (WIN) employee resource group.
  • Established a new ERG for Latin American employees
  • Achieved a 78% training rate, further raising employee awareness of DE&I
  • Provided free healthcare to approximately 300 people a day through the “Health on Wheels” program in India.

Governance Achievements

  • Continued to improve access to company policies for employees
  • Global participation rate in ethics training was above 95%
  • No material breaches resulting in a loss of customer data in 2021
  • No confirmed cases of breaches to our Code of Business Conduct and Ethics in 2021

Climate Goals & Targets

Medium-term Goals:
  • 50% reduction in Scope 1, 2, and 3 greenhouse gas emissions by 2030 (from 2020 baseline)
Short-term Goals:
  • Reduce energy consumption and evaluate energy conservation initiatives at Tier 1 and Tier 2 sites
  • Evaluate renewable energy opportunities in our global operations
  • Assess opportunities to reduce impact of products and create relevant new initiatives
  • Increase supplier diversity spend every year from 2020-2022
  • Work toward a 50% greenhouse gas (GHG) reduction in our supply chain

Environmental Challenges

  • COVID-19 pandemic impacted in-person communications and supply chains
  • Data collection and baselines varied greatly from year to year due to the Coriant acquisition
Mitigation Strategies
  • Maintained stakeholder engagement through virtual forums, video conferences, and surveys
  • Pivoted to conducting virtual audits
  • Established global 2020 baselines for environmental data
  • Implemented a risk-based approach to cybersecurity

Supply Chain Management

Supplier Audits: 100% of strategic suppliers reviewed in 2021; 95% of top 45 suppliers completed EcoVadis questionnaire

Responsible Procurement
  • Supplier Code of Conduct
  • ESG-related criteria in supplier audit checklists
  • EcoVadis sustainability questionnaires

Climate-Related Risks & Opportunities

Physical Risks
  • Supply chain interruption due to natural disasters
Transition Risks
  • Changes in environmental regulations
  • Market shifts towards more sustainable products
Opportunities
  • Increased business or market share due to strong environmental performance

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 9001, TL 9000

Sustainable Products & Innovation

  • Infinite Capacity Engine (ICE) – increased longevity and decreased power consumption
  • XR optics – compact footprint and less power consumption

Awards & Recognition

  • EcoVadis Gold Medal
  • Newsweek’s America’s Most Responsible Companies (#27 in Technology Hardware sector)
  • Indian Corporate Social Responsibility (CSR) Award for Best CSR Project in Healthcare

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:71,190 tCO2e/year (actual); 53,698 tCO2e/year (estimated normal)
Scope 1 Emissions:17,986 tCO2e/year (actual); 492 tCO2e/year (estimated normal)
Scope 2 Emissions:16,368 tCO2e/year
Scope 3 Emissions:36,838 tCO2e/year
Renewable Energy Share:70%
Total Energy Consumption:53,985 MWh/year
Water Consumption:40,360 m3/year
Waste Generated:636.53 metric tons/year
Carbon Intensity:0.026 tCO2e per square foot (estimated normal); 0.053 tCO2e per square foot (actual)

ESG Focus Areas

  • Product Sustainability
  • Climate, Emissions, and Energy
  • Diversity, Equity, and Inclusion
  • Supply Chain Management and Responsible Sourcing
  • Privacy, Data Protection, and Information Security
  • Waste Management and Recycling
  • Employee Health, Safety, and Well-being
  • Employee Development, Benefits, and Satisfaction
  • Global Human Rights
  • Community Engagement and Philanthropy
  • Customer Engagement and Satisfaction
  • Innovation and Leadership
  • Ethics and Anti-corruption
  • ESG Integration in Business Strategy
  • Transparency and Disclosure

Environmental Achievements

  • Reduced energy consumption by 23% compared to 2020 baseline.
  • 70% of energy sourced from renewable sources (increase from 48% in 2021).
  • Seven sites operating on 100% carbon-free energy.
  • ICE6 optical engine launched, boasting a 30% reduction in power consumption from the previous generation.
  • XR optics solution reduced power consumption by 72%, CO2 emissions by 70%, and the number of devices needed by 67%.

Social Achievements

  • Launched a global employee mentorship program with 71 mentor-mentee pairings.
  • Completed 71 internships.
  • Increased supplier diversity spend.
  • Achieved an injury rate of 0.075 (compared to the industry average of 1.0).

Governance Achievements

  • Enhanced and standardized global policies.
  • Achieved 99.7% completion rate on Code of Business Conduct and Ethics training.
  • Automated insider trading pre-clearance process.
  • Certified information security management system to ISO 27001.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce GHG emissions by 50% by 2030.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Emissions excursion at Lisbon site due to a fire (17,494 metric tons of HFC-23 released).
  • Fine from City of Sunnyvale for wastewater discharge violation.
  • Global supply chain uncertainties impacting supplier diversity spend.
Mitigation Strategies
  • Immediate reporting and resolution of wastewater discharge violation resulting in fine reduction.
  • Improved data collection and reporting to increase accuracy.
  • Continued engagement with diverse suppliers and participation in relevant organizations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Code of Conduct
  • EcoVadis assessment for key suppliers
  • Integration of ESG criteria into supplier audit checklists.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Environmental regulation
  • Supply chain resilience
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 9001, ISO 27001, TL 9000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 8: Decent Work and Economic Growth
  • Goal 10: Reduced Inequalities
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action

See report for details on how initiatives contribute to these goals.

Sustainable Products & Innovation

  • ICE6 optical engine
  • XR optics

Awards & Recognition

  • Newsweek’s America’s Most Responsible Companies (#24 in Technology Hardware sector)
  • Deutsche Telekom’s Green Future Best Practice Award for XR optics

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:51,245 tCO2e (market-based); 66,441 tCO2e (location-based)
Scope 1 Emissions:1,050 tCO2e
Scope 2 Emissions:4,334 tCO2e (market-based); 14,119 tCO2e (location-based)
Scope 3 Emissions:45,861 tCO2e
Renewable Energy Share:>80%
Total Energy Consumption:49,801 MWh
Water Consumption:34,139 m3
Waste Generated:438 metric tons (non-hazardous); 187.65 metric tons (hazardous)
Carbon Intensity:0.12 tCO2e per square foot (market-based); 0.15 tCO2e per square foot (location-based)

ESG Focus Areas

  • Product Sustainability
  • Climate, Emissions, and Energy
  • Diversity, Equity, and Inclusion
  • Supply Chain Management and Responsible Sourcing
  • Privacy, Data Protection, and Information Security
  • Employee Health, Safety, and Well-being

Environmental Achievements

  • Reduced market-based scope 2 emissions by 77% since 2020.
  • Over 80% of global energy consumption comes from renewable sources.
  • Submitted new science-based emissions targets to the Science-based Targets Initiative (SBTi).

Social Achievements

  • Increased annual spend with diverse and small business suppliers to 3%.
  • Launched a new employee resource group, Infinera Veterans Employee Resource Group (IVERG).
  • Maintained a global injury rate of 0.21, significantly lower than the industry average of 1.0.

Governance Achievements

  • Updated Compensation Recovery Policy to ensure compliance with Nasdaq listing requirements.
  • Enhanced Global Background Screening and Acceptable Use Policies.
  • Deployed a new Artificial Intelligence (AI) Policy.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero scope 2 emissions by 2050.
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce location-based scope 1, 2, and 3 GHG emissions by 50% by 2030 (from a 2020 baseline).

Environmental Challenges

  • Slight increase in total greenhouse gas emissions in 2023 due to increased scope 1 and 3 emissions.
  • Increase in business travel and employee commuting post-COVID-19.
  • Increased third-party deliveries from suppliers.
Mitigation Strategies
  • Investing in the transition to low-carbon and renewable energy sourcing.
  • Implementing a new travel booking system to track business travel emissions more accurately.
  • Implementing power-saving initiatives to reduce energy consumption.

Supply Chain Management

Supplier Audits: 92% of spend covered by EcoVadis sustainability assessment.

Responsible Procurement
  • Supplier Code of Conduct
  • EcoVadis assessments
  • GHG emissions data requirement in new contracts

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Environmental regulation
  • Supply chain resilience
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 27001, ISO 9001, ISO 45001, TL 9000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • No Poverty
  • Gender Equality
  • Affordable and Clean Energy
  • Decent Work and Economic Growth
  • Reduced Inequalities
  • Responsible Consumption and Production
  • Climate Action
  • Peace, Justice and Strong Institutions

Alignment detailed in Appendix C.

Sustainable Products & Innovation

  • ICE7 optical engine
  • ICE-X pluggable optics

Awards & Recognition

  • Most Innovative Proof of Concept award (FiberConnect 2023)
  • Most Innovative Broadband Access Solution award (Light Reading’s Leading Lights Awards)
  • Most Innovative Product award (European Conference on Optical Communication)