At STMicroelectronics (ST), sustainability has been a guiding principle for more than 30 years. As an Integrated Device Manufacturer (IDM) ST handles most manufacturing in-house. ST takes a proactive approach and has embedded sustainability throughout its activities with a strong commitment to sustainable manufacturing in terms of energy consumption, greenhouse gas emissions, air and water quality, and health and safety for employees.

Jean-Louis Champseix, Group Vice President, Corporate Sustainability shares some insights on the Company’s new long-term sustainability goals and commitments, and on how ST’s sustainability reporting has changed this year.

Why has ST introduced new sustainability commitments? What changes have been made and why now?
ST has been publishing and continuously raising the ambition of our public long-term goals for more than three decades. Setting new goals this year has therefore been a natural progression for us, as some of our previous goals had reached their target year in 2025 and others had already been achieved ahead of schedule.

In addition, all our goals are now aligned with new external sustainability reporting standards as set out by the EU Corporate Sustainability Reporting Directive (CSRD), which requires companies to disclose long-term sustainability goals for sustainability topics identified as material for ST through our Double Materiality Assessment.

We are very proud to set new commitments and goals to drive to the Company’s priorities until 2030 and 2035. These goals focus on achieving measurable reductions in our environmental footprint, providing a safe and healthy workplace for our employees, as well engaging on sustainability with our supply chain and the communities in which we operate. Our new goals look beyond our carbon neutrality commitment for 2027, which covers all direct and indirect emissions (scopes 1 and 2), as well as product transportation, business travel, and employee commuting emissions (our scope 3 focus). This includes setting new goals to decarbonize our supply chain and working with our suppliers to reduce greenhouse gas upstream emissions. We have also set new goals for energy savings, water recycling and Alliance for Water Stewardship certification, and on the adjusted gender pay gap, among others.

What are the changes to ST’s sustainability reporting?
ST has been reporting on sustainability for 28 years, with a first environmental report in 1997. This year has brought some significant changes in the way that we report our sustainability performance. On March 27, we published our first annual integrated Company report in alignment with the CSRD. The CSRD aims to standardize the disclosure of sustainability information by companies to enable informed decision making. In line with the CSRD, our sustainability statement and data are now integrated into our Company Dutch annual report, demonstrating once again the importance and transversal nature of sustainability for our Company.

What is the impact of these changes?
The changes to our reporting mean that 2024 will serve as a new baseline year for our sustainability data. In some cases, we also have extended the scope of our reporting or used new calculation methodologies and standards. For example, our health and safety data, which was previously reported based on Occupational Safety and Health Administration (OSHA-US) standards, is now reported using the CSRD methodology (equivalent to the OSHA-US rate multiplied by 5). Our greenhouse gas emissions now include all upstream emissions, and our water recycling rate follows the new World Semiconductor Council (WSC) standard. We have also reviewed our gender pay gap data, by calculating and reporting the adjusted gap which reflects equal pay for equal work. This approach allows us to identify any disparities at both country and job level, enabling us to address any gaps with focused actions now and in the future.

Looking back at 2024, can you share with us some of ST’s sustainability highlights from last year?
Our achievements in 2024 demonstrate our continued sustainability success and leadership. Notable examples include a safety total recordable case rate for work-related injuries and illnesses for both ST employees and on-site contractors of 0.65 (versus the <0.75 target) and adjusted gender pay gap at 1.8% in favor of women. In addition, we have had excellent environmental results with 54% of water being recycled or reused, 97% of waste diverted from disposal and 84% of our electricity coming from renewable sources.

We were also pleased to have received external recognition for our performance. In 2024, we maintained our presence in the Dow Jones Sustainability Index World and Europe indices. Additionally, we received MSCI AAA rating, CDP Climate A and water A- and were awarded a platinum medal by EcoVadis, placing us in the top 1% of companies assessed.

Find out more about ST’s approach to sustainability and new long-term goals here.