STMicroelectronics Publishes 2023 Sustainability Report
- On track to become carbon neutral by 2027 with global sourcing of electricity from renewable energy growing to 62% in 2022, from 51% in 2021
- 77% of new products identified as responsible in 2022, from 69% in 2021
STMicroelectronics (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronics applications, today releases its annual sustainability report detailing 2022 performance, strategy, and ongoing action plans.
“We provide our customers with the key enabling products and technologies for decarbonization and a more sustainable society through digitalization and electrification. We are committed to doing so through a secure and responsible supply chain that prioritizes our people and the planet,” said Jean Marc Chery, President and CEO, STMicroelectronics. “Our strong commitment to sustainability is clear from the important progress we are making in all areas and from our ambition to drive further improvement to achieve all our sustainability goals, including our goal to be carbon neutral by 2027.”
The identification of ST’s priority sustainability topics is formalized through a regular multistakeholder materiality exercise and the company’s reporting is aligned with Global Reporting Initiative (GRI) Standards for stakeholder inclusiveness, sustainability context, materiality, and completeness.
ST’s performance across many areas was recognized again by multiple ESG rankings, indices and international certifications including, among others, Dow Jones Sustainability Index World and Europe, EuroNext VIGEO Europe 120, FTSE4Good, ISS ESG Corporate Rating and MSCI.
ST’s 2022 ESG achievements and progress include:
ST technologies and products enable its customers to boost sustainability and seize opportunities with continued improvement of the Company’s social and environmental footprint at every stage of the product lifecycle (Sustainable technology). In 2022:
- 77% of new products were identified as responsible1 (responsible sourcing, eco-design, advanced EHS standards of manufacturing, responsible products, and applications) (vs 69% in 2021).
- 23% of total revenue derived from responsible products (vs 20% in 2021).
ST is on track to become carbon neutral by 2027 (Energy and climate change) and, while continuing to expand manufacturing capacity, actively worked in 2022 to further reduce its environmental footprint, including the following achievements:
- A 40% decrease in GHG emissions for scopes 1 and 2 since 2018 in absolute terms (vs a 34% decrease in 2021).
- An increased sourcing of electricity coming from renewable sources to 62% (from 51% in 2021).
- The reuse, recovery, or recycling of 95% of the Company’s waste (vs 90% in 2021), reaching the 2025 target ahead of time.
ST also continued to put people first, with actions and training to support a more diverse and inclusive culture, along with continued progress on health and safety, and talent attraction and engagement, including the following achievements:
- Sustainability performance is now part of the incentive program for over 21,000 employees.
- Over 19,000 employees trained in 2022 on the new leadership model designed to support the transformation journey of the company.
- 86% of employees recommend ST as a great place to work (+3 points vs 2021) (Talent attraction and engagement.)
- A further decrease in the recordable case rate for employees (work-related injuries per 100 employees per year) to 0.10 (from 0.12 in 2021), a best-in-class performance.
- Reached the target of hiring 30% women for exempt positions for the second year in a row.
Innovation is the driving force that fuels ST’s growth and helps achieve the Company’s business objectives. ST has a collaborative approach for profitable growth, working across ecosystems and communities and with academic, private, and public partners, to create market-leading products and solutions that enable the Company’s customers to tackle tomorrow’s challenges and fuel their future growth:
- 12% of net revenues (US$1.9 billion) invested in R&D to support innovation.
- Involved in 186 active R&D partnerships worldwide.
- More than 450 STEM2 events and initiatives reaching over 100,000 students and teachers (Community and education).
The 26th annual report contains highlights and details of ST’s sustainability performance in 2022 and presents the Company’s ambitions and longer-term goals in alignment with both the United Nations Global Compact3 Ten Principles and Sustainable Development Goals and the Science Based Targets initiative4 (SBTi). It is aligned with Global Reporting Standards (GRI), Sustainability Accounting Standards Boards (SASB), and Task Force on Climate-Related Financial Disclosures (TCFD). A third party has verified this report.
More information on ST’s sustainability efforts can be found at https://www.st.com/content/st_com/en/about/sustainability.html
At ST, we are more than 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of the Internet of Things and connectivity. ST is committed to becoming carbon neutral by 2027. Further information can be found at www.st.com.
1Responsible products are products that provide environmental and social benefits.
2Science, Technology, Engineering, and Mathematics
3The United Nations Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, the environment and anti-corruption. More information on the UN Global Compact is available at: http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html
4 The Science Based Targets initiative mobilizes companies to set science-based targets and boost their competitive advantage in the transition to the low-carbon economy. It is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments.