2022

Environmental,
Social, andGovernance
ReportCEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

2022 ESG Report

APPENDICES

About This Report

2

From CSR to ESG

Synopsys is about the future, driving innovationsaligns with the Task Force on Climate-related

Although Synopsys has a practice of reportingthat transform how societies and individuals live.

Financial Disclosures (TCFD) and the United Nations

annually on our environmental, social, andOur ambitions aim both high and wide, as we believe

Sustainable Development Goals (UN SDGs). This

governance activities and measures via Corporatethat taking seriously our responsibilities to all ofreport has also been prepared with reference to theSocial Responsibility reports, this is the first year

our stakeholders—including our employees, our2021 GRI Standards. Synopsys also reports separately

we’re releasing a formally designated ESG Report – acommunities, and the planet—supports the successto the CDP as a part of our disclosure efforts.

move designed to better align our reporting with theof our business and drives value for our stockholders.

information and data we believe is most relevant toThrough our Smart Future Environmental, Social, andSynopsys employees around the world submitted

our key stakeholders. We believe that reconfiguring

Governance (ESG) strategy, Synopsys manages our

photographs for potential inclusion in this year’s

this report will enable readers of our report to better

direct impacts and uses our resources and influencereport. Photos included in the report are credited tounderstand the ways in which we assess and manage

to help make the world more sustainable, just, andthe corresponding Synopsys employee.

the ESG matters that are relevant to our business.

secure. This Synopsys 2022 ESG Report covers our
ESG performance for our fiscal year 2022, which

The content in this report is intended for multiple

began November 1, 2021, and ended October 31,

stakeholders, including our stockholders, employees,

2022. The exceptions include our environmental

customers, business partners, and local communities.

performance data (calendar year 2021), social impact

No significant changes have occurred during theperformance data (calendar year 2022), and asreporting period with regard to the scope, boundary,otherwise noted. We considered the recommended

or measurement methods applied in this report.

disclosures in the Sustainability Accounting Standards
Board (SASB) Software & IT Services Standard when
determining the content of this report. Our reporting

Cover Photo Credit: Annaraja Lakshmanan, Synopsys Employee, India

Previous Report: 2021

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APPENDICES

Table of Contents

3

Distributing This Report
We promote our report through:01. CEO LETTER
4

02. ABOUT SYNOPSYS
2022 by the Numbers

04. SOCIAL
2022 Social Highlights

SASB Index

Our People

TCFD Index

Social Impact

GRI Content Index

2023 Social Goals

UN SDG Index

33

702022 Progress: SMART FUTURE

7

05. GOVERNANCE
2022 Governance Highlights
Corporate Governance

03. ENVIRONMENT
2022 Environment Highlights
Innovation for a Greener World
Addressing our Own Operational Impact
Assessing Climate Risks and Opportunities
2023 Environment Goals

16•

Prominent disclosure on our website•

Targeted employee communications•

Outreach to current and potential stockholders•

Outreach to other stakeholders with whom wehave built relationships•

From Silicon to Software–It’s What We Do
Creating a SMART FUTURE Together

06. APPENDICES

Our social channels

We welcome feedback on this report and our
performance. Please send comments andsuggestions to esg@synopsys.com.

Business Continuity and Resiliency
Cybersecurity and Privacy
Supply Chain
Political Activities and Contributions
2023 Governance Goals

53

This 2022 Environmental, Social, and Governance (ESG) Report contains forward-looking
statements pursuant to the safe harbor provisions of Section 21E of the Securities Exchange
Act of 1934 and other federal securities laws, and actual results could differ significantly. Thesestatements are based on management’s current opinions, expectations, beliefs, plans, objectives,
assumptions, or projections regarding future events or results, including, but not limited to, our ESG
strategies, initiatives and commitments; our business plans and strategy; our technology, products
and services; ESG risks and opportunities; and our stakeholder engagement efforts. Risk factorsthat could cause actual results to differ are set forth in the “Risk Factors” section in our most recent
Annual Report on Form 10-K and subsequent 10-Q filings. Any references to “material” in this report
are not intended to have the same meaning as in the context of financial statements or financial
reporting or as defined by the securities laws of the United States. While Synopsys believes that our
ESG goals and initiatives are important, we currently do not believe that such goals, initiatives, orrisks are material to our financial results and results of operations, except to the extent referenced in
our Annual Report on Form 10-K and subsequent 10-Q filings.
This report also contains human capital measures or objectives that may be different from or are
in addition to the human capital measures or objectives that Synopsys is required to disclose in its
U.S. Securities and Exchange Commission filings. For a discussion on human capital measuresor objectives that Synopsys focuses on in managing its business, please see the “Human Capital
Resources” section in our most recent Annual Report on Form 10-K.

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01
CEO Letter

SOCIAL

GOVERNANCE

APPENDICES

2022 ESG Report4CEO LETTERABOUT SYNOPSYS

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In a Smart Future, human prosperity
depends on processing power.
It’s no exaggeration to say that Synopsys

revolution in treatment, are dependent

technology makes possible the faster, more

on artificial intelligence (AI) running at

efficient computing we will need for a sustainable,

massively improved speeds.

just, and secure future. The astonishing team•

Smarter technology built on faster

here at Synopsys builds world-changing

computing holds the key to safer, self-

technology every day, but we do that work from adriving vehicles, and ultimately radically

clear starting point: our commitment to maximize

improved industrial automation andour positive impact on the world and use ourefficiency.

influence to drive broad-based change.

•

And as we work to better understand our
future in a changing climate, the models

In every field of human endeavor, technologythat help us simulate the interplay ofholds the key to innovation and future success.

atmosphere, water, land, and humanactivity require processing power that takes•

As we learned during the pandemic, finding

the world’s largest supercomputers and AI

new antivirals and vaccines, identifying

algorithms to their limits.

antibodies, discovering candidate drugs,•

and designing new testing regimes are all

Synopsys stands by our promise to implement

highly dependent on the ability to process

our Smart Future Environmental, Social, andvast amounts of data in increasingly

Governance (ESG) strategy. This report setssophisticated ways.

out how we progressed on our Smart Future

Meanwhile, advances in automated cancer

ambitions.

cell identification, which offer hope for a

APPENDICES

2022 ESG Report5CEO LETTERABOUT SYNOPSYS

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As you would expect, action on climate change has

impact on our climate, are important actions toward agrow and our employees also launched a new Next

been front and center. Through our ongoing work to

more sustainable future.

Gen ERG for young professionals in South Asia.

greenhouse gas (GHG) emissions from the explosive

Throughout 2022, we also continued to build our2023 will find Synopsys continuing to proceed withgrowth in computing driven by cloud and AI. We

culture of innovation and invest in our most criticalvigor and ambition. A detailed roadmap will set

submitted more ambitious GHG emissions reduction

asset: our people. Through training, we are developingout how we will tackle our Scope 1, 2, and 3 GHG

goals to the Science Based Targets initiative (SBTi),

next-generation leaders to fuel next-generation

emissions, and include steps to engage our supply

and I was excited to see our virtual power purchasetechnology. In 2022, approximately 55% of managers

chain partners in setting their own science-based

agreement for wind energy come online in summer

completed Compass, a leadership development

emissions reduction targets. We will continue to2022, securing 15 megawatts of clean power. We

essentials course, and over 86% of managers

revise and strengthen our business continuity plans

also initiated our first renewable energy procurement

completed our Inclusive Leader training course.

to protect us against growing risks from geopoliticalcontract in India, acquiring approximately 400,000

Synopsys was formed with the foundation of operating

instability, economic crises, public health threats, andkilowatt hours of clean energy for that market, andwith integrity and execution excellence, and we areclimate change. Above all, we’ll continue to combine

began including renewable energy commitments asproud that these remain the bedrock of the company

the power of science and technology with our values-

part of our contracts with data center providers.

36 years later.

based culture to help realize a sustainable, just, andreduce the power consumption of chips, we’re tackling

secure future for everyone.
Collaboration and industry partnerships are essential

Synopsys remains steadfast in our commitment to

if we’re going to continue to pave the path of digitalbuilding a more diverse talent pipeline, increasing

solutions to sustainability challenges. So, in 2022, weawareness around inclusion and diversity, andbecame part of 21 companies and organizations that

demonstrating the positive impact of a more inclusivepledged to the U.S. Department of Energy to increase

culture. In line with our inclusion and diversity goals,

semiconductor energy efficiency by a factor of 1,000

we increased representation of women in all roles

over the next 20 years, through the Energy Efficiency

to 24.9% of our global workforce. We also increased

Scaling for 2 Decades (EES2) initiative. Initiatives such

representation of Black, Latinx, and Indigenous (BLI)as EES2, along with commitments by other companies

employees in our U.S. workforce to nearly 6%. We were

Aart de Geus,

in the semiconductor ecosystem to mitigate theirdelighted to see our Employee Resource Groups (ERGs)

Chair and Chief Executive Officer

Sincerely,

2022 ESG Report6CEO LETTERABOUT SYNOPSYS

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2022 ESG Report

702
About Synopsys
2022 by the Numbers
From Silicon to Software–It’s What We Do
Creating a SMART FUTURE Together
2022 Progress: SMART FUTURE

Photo Credit: Kurma Chandra Shekar, Synopsys Employee, India

CEO LETTERABOUT SYNOPSYS

At Synopsys, our culture ofcontinuous research and innovation

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APPENDICES

Synopsys is an innovator intechnologies shaping our world

has produced the world’s mostadvanced technologies for chip
design and verification, IP integration,and software security and quality
testing. Working together with ourcustomers, we’re changing theway people live, work, and play via
transformative technologies such asAI, autonomous vehicles, the cloud,Software that’s
powering the digitaltransformation

Analytics that are
uncovering new
insights

Virtually all companies
differentiate via software

Analytics point the way,
including toward building andmaintaining products more
effectively

Chips that are
differentiating theexperience

AI that’s accelerating
everything

the metaverse, and 5G.

Advanced chips’ massive
processing power is bringing
new software inventions to life

Beyond enabling Smart
Everything, AI also enables
faster and more efficient chip
designs

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92022 by the Numbers

125

3,386

19,008global offices

active patents

employees globally

Photo Credit: Tiago Trigo, Synopsys Employee, Portugal(26% U.S., 74% non-U.S.)

Revenue Breakdown
DESIGN AUTOMATION$5.08B80%

33%

annual revenue

engineers, over half withmaster’s degrees or PhDsof revenue devoted
to R&D~65% of revenue

DESIGN IP~25% of revenue

SOFTWARE INTEGRITY~10% of revenue

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From Silicon to
Software—It’s
What We Do

GOVERNANCE

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10

Our Product Portfolio

Our Values

From silicon to software, Synopsys’ product portfolio encompasses

For more than 30 years our core values haveadvanced solutions that enable our customers to innovate in today’s mostbeen the foundation of our culture—Integrity,

rapidly evolving application areas, including AI, autonomous vehicles, theExecution Excellence, Leadership, andcloud, and 5G.

Passion. But we’re also always looking ahead,at what’s next for us. That’s why we bring ourvalues to life with a “Yes, if” mindset — which

Synopsys technology is at the heart of innovations that are changing the waymeans we never see solving a problem as

we work and play. Autonomous vehicles. Artificial intelligence. The cloud. 5G.

impossible. We challenge ourselves and each

These breakthroughs are ushering in the era of Smart Everything - where devices

other to simply shift our perspectives to see

are getting smarter, everything’s connected, and everything must be secure.

how we can make it possible.

Everything Engineers Need to Enable
Innovation, from Chips to Software

Synopsys is at the forefront of Smart Everything with technologies that help ourcustomers innovate from silicon to software so they can deliver Smart Everything.
We’re the world’s leading provider of solutions for designing and verifying
advanced silicon chips, the software that runs on those chips, and the nextgeneration processes and models to manufacture them. Our design technologies
maximize productivity while optimizing for reliability, power, performance, speed,and cost. Our chip verification technologies cut months off customers’ projectschedules. We offer the world’s broadest portfolio of silicon IP―pre-designed
blocks of logic, memory, interfaces, analog, security, and embedded processors

Design Automation

Design IP

Software Integritythat broaden our customers’ capabilities and reduce integration risk. Our static

Build highperformance siliconchips, fasterIntegrate more capabilities on
SoCs (systems-on-a-chip),fasterBuild secure,high-quality software, faster

analysis, software composition analysis, and dynamic analysis solutions help
customers build security and quality into their software code’s DNA. And ourcloud technology gives companies virtually unlimited computing resources to use
our products, when and where they’re needed.

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2022 ProductInnovation Highlights

Synopsys’ Awards for
Fiscal 2022
Golden Signoff ECO Solution, which delivers 10x

TSMC 2022 OIP Ecosystem Forum: Six Partner of theto drive advancements across application areas, including

productivity improvement over traditional engineeringYear awards, spanning digital and custom design, IP,

AI, high-performance compute, cybersecurity, healthcare,change order (ECO) solutions

and cloud-based solutions

Synopsys Code SightTM Standard Edition with IntelliJ

2022 Gartner Critical Capabilities for Application

we’re making technology smarter, more secure, and more

support, which enables developers to test code in real

Security Testing Report: Highest scores across five

power efficient. From protecting data to verifying chips,

time as they write ituse cases

DesignDash, a data-visibility and machine-intelligence-

2022 Gartner® Magic Quadrant™ for Application

innovations help customers meet their goals and accelerate

guided optimization solution delivering a real-time, unified,

Security Testing: Named a leader for the sixth

their own innovations.

360-degree view of all system-on-a-chip (SoC) designconsecutive year

Our Silicon to Software Solutions empower our customers•

data center sustainability, and automotive, including
autonomous vehicles. Using holistic design approaches•

developing software and hardware designs, building insustainability, and advancing 3D image processing, our•activities
In 2022, we introduced several new products to help drive
our future business growth, including:•

CRN 2022 Partner Program Guide: 5-star rating•

Synopsys ARC® NPX6 and NPX6FS NPU IP, a newneural processing unit (NPU) IP and toolchain that deliver

2021 World Electronics Achievement Awards: Product

Synopsys Cloud, the industry’s first cloud-optimized

the industry’s highest performance and support forof the Year honor in the EDA/software category, for ourelectronic design automation (EDA) model, delivering

automotive, consumer, and data center chip designs

PrimeShield™ design robustness solution

unparalleled levels of chip and system design flexibility andefficiency via a single-source, pay-as-you-go approach

TSMC Open Innovation Platform (OIP) Partner of
the Year Awards: Recognized for Interface IP, joint
development of 4nm design infrastructure, and joint
development of 3DFabric™ design solution

11

CEO LETTERABOUT SYNOPSYS

ENVIRONMENT

Creating a
SMART FUTURE
TogetherShaping the future of Smart Everything brings great
opportunities and important responsibilities – the future
is not smart if it is not sustainable, just, and secure.
Our Smart Future ESG strategy provides a frameworkfor how we address our own operational impact on theworld and our ability to influence others to do the same.
We leverage our strategy and our corporate governanceprocesses to assess and manage the ESG matters thatare relevant to our business. By focusing on the resilienceof our business and taking into account the interestsof our key stakeholders—including our customers,
employees, business partners, and local communities—
we believe we will ultimately drive business successand generate value for our stockholders, and at thesame time, make meaningful progress with respect toenvironmental and social issues within our ecosystem,
such as climate action, inclusion and diversity in our
workforce, and social impact in our communities.

SOCIAL

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Smart Future Strategy

2022 ESG Report12CEO LETTERABOUT SYNOPSYS

ENVIRONMENT

How We Manage ESG

SOCIAL

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2022 ESG Report

APPENDICESESG Governance Structure

Synopsys’ Smart Future strategy is overseen by the ESG
Management Team, with support from the ESG Leadership
Committee. The ESG Leadership Committee includes
executives from across our business who are tasked

Board of Directors

with driving Synopsys’ ESG performance and ensuring
implementation of our Smart Future strategy in their respective
areas of responsibility.

Corporate Governance and Nominating Committee
Our Corporate Governance and Nominating (CGN) Committee
is responsible for overseeing policies, practices, priority andrisk assessments, risk management, initiatives, goals and

ESG Management Team

progress toward goals and public disclosures relating to ESG
matters, except to the extent delegated to other committeesof the Board, such as matters related to human capital

ESG Leadership Committee

management and diversity, equity and inclusion. The ESG
Management Team provides updates to the CGN Committee
as well as the full Board of Directors. These updates allow us
to inform and educate the Board on topics such as our GHG
emissions reduction strategy and targets and ESG-focused
regulatory requirements and proposals around the world. We
aim to continue to connect stakeholders across the businessand integrate ESG more strategically into our corporate
governance process.

Workplace
Resources

PeopleTeam

Safety and
Resiliency

HardwareOperations

Information
Technology

Investor
Relations

Finance

LegalEnterpriseMarketingSocialImpact13

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Engaging Our Stakeholders

2022 ESG Report

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Engaging Key Stakeholders

In 2018, we conducted our first assessment to help us identify priority ESG topics for our strategy. In
late 2022, we embarked on a priority assessment refresh exercise to understand whether and how

Stockholders

our priority focus areas need to shift to best manage issues of greatest impact for our company

We proactively reach out to our stockholders
to understand their ESG expectations, andand stakeholders. To be finalized in 2023, our priority refresh will incorporate feedback from key

regularly provide updates on our programs

stakeholders on our performance and will include updated expectations around mandatory ESG

and progress.

disclosures. We will continue to review and adjust our strategy, management, and disclosure
practices in alignment with emerging expectations, regulations, and best practice standards.

Employees
Our employees are the heart of our

In addition to our priority assessment, we engage with key stakeholders on an ongoing basis
to get their perspectives on our ESG strategy, policies, and programs and help guide our Smart
Future impact and influence.

company, bringing the creativity thatmakes our innovations possible.
In advancing our ESG strategy, we
encourage employee initiatives that help
deliver on a more sustainable, just, andCustomers
We partner with our customers toadvance shared ESG priorities inthe semiconductor and software
ecosystem.

secure workplace.

Suppliers

Industry Partners

Synopsys’ commitment to responsible

Collaboration and industry partnerships are essential

business practices extends to our suppliers.

if we’re going to continue to pave the path of digital

We expect suppliers to operate in a manner

solutions to sustainability challenges. So, in 2022,

consistent with the Synopsys Code of Ethics

Synopsys became part of 21 companies andand Business Conduct and the Supplier Codeorganizations that have pledged to the U.S. Departmentof Conduct for our direct suppliers.

of Energy (DoE) to increase semiconductor energy
efficiency by a factor of 1,000 over the next 20 years.

Learn more about the ESG priority topics we’re managing through our Smart Future strategy here.

14CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL2022 Progress:
SMART FUTURE
INCLUDING BUT NOT LIMITED TO:
Environment: Submitted new Scope 1, 2 and 3 GHG emissions targets to
the SBTi and achieved CarbonNeutral® company certification for our global
operations for the fourth consecutive year
Inclusion and Diversity: Increased the overall representation of womenin senior roles for five straight years, and increased Black, Latinx andIndigenous (BLI) representation in our U.S. workforce by approximately
30% from fiscal 2021
Synopsys for Good: Conducted a three-week Season of Service volunteer
program with 52 projects around the world and celebrated the company’s
35th anniversary by providing a 2:1 match to 35 organizations
Supply Chain: Added renewable energy commitments to our data center
vendor agreements and developed ESG criteria for our indirect procurement
Request for Proposal process

GOVERNANCE

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03
Environment
2022 Environment Highlights
Innovation for a Greener World
Addressing Our Own Operational Impact
Assessing Climate Risks and Opportunities
2023 Environment Goals

Photo Credit: Erika Varga McEnroe, Synopsys Employee, United States

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Every year, businesses face escalating calls to not

2022 ESG Report

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17

UN SDG Alignment

only join but lead the transition to a low-carbon
economy. We hear those calls, and we agree.
Through our technologies, we’re empowering

Synopsys invests in innovative energy efficiency solutions
across our value chain, from our operations and data centers
to our research and development of low power solutions forour customers. We engage our facilities in energy efficiency
projects and are enabling new grid-scale renewable energy
through participation in a major aggregated virtual powerpurchase agreement (VPPA). We have also prioritized clean
energy for our data centers. In 2022, we included language
in our data center providers’ master service agreements
mandating that providers affirm a significant commitment torenewables before we begin any new contract.

our customers to design more energy efficientand powerful chips that enable new applications
and product lines, expanding our circle of impact
worldwide. We are also working to influencegreener practices across our supply chain and thewider technology industry, and through continual

Our products connect our customers to innovativetechnological solutions, including mechanisms thatsafeguard data privacy and build a more resilient, sustainableglobal infrastructure for all. We envision a future poweredby Synopsys technologies that enable reduced energy andemissions footprints for our customers.

internal optimization, we’re driving down ourown environmental impacts—supporting key
environmental advances for people, communities,
and the planet while driving business success.

We are committed to doing our part to limit global warming
to 1.5° Celsius above pre-industrial levels. We are an SBTi
participant and have submitted near-term targets for SBTi’s
review and validation. To continue improving emissions
measurement and inform reduction of our environmental
impacts, we have expanded our GHG emissions inventory
and are developing initiatives to address Scope 3 emissions
related to employee travel, supply chain, and use of soldhardware products—the latter through innovative low power
solutions that help our customers reduce their own products’energy consumption throughout the product life cycle.

We believe a Smart Future is a sustainable future,
and we’re working to make it a reality.

See our UN SDG Index to learn more about how Synopsys’ environmental strategy supports
these SDGs.
Photo Credit: Kiran Maddhula, Synopsys Employee, India

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2022
Environment
Highlights

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30%

Customers using our Design
Space Optimization AI (DSO.ai)
application achieved up to a 30%
power consumption reduction in chip
design, shorter turnaround times, andless use of compute resources

4 Years

1.3M Sq Ft

Achieved CarbonNeutral®
company certification for our
global operations for the fourthconsecutive year

Advanced our commitment tosustainable construction, with
1.3 million square feet of LEEDcertified office space, globally

25%

SBTi
Commitment

Scope 3Low power platform to enable
an additional 25% power
consumption reduction forcustomer’s SoCs

40K MWhs
Began sourcing 40,000 megawatt
hours (MWhs) of renewable energy
per year for our North American
offices and data centers

Established new GHG emissions
reduction targets and submitted
these for SBTi review andvalidation

18

Expanded our GHG inventory
to include additional Scope 3
emissions categories

Renewable
EnergyCarbon Offset
Projects

Added language to our data center
provider agreements detailing ourcommitment to renewable energy

Invested in 4 carbon offset projects
through our partnership with
Climate Impact Partners

Photo Credit: Daria Lango-Okroj, Synopsys Employee, Poland

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Innovation for a
Greener World
Throughout our 36-year history, Synopsys’ chip and software innovations have helped
to connect companies around the world with smarter technology and achieve greater
speed, power efficiency, reliability, and security. From silicon to software, Synopsys isenabling the world to become more digitized, connected, and intelligent, but the shiftcomes at a cost. Hyperscale data centers and the explosion of internet traffic have
driven up energy consumption even as the world finally approaches consensus on
reducing fossil fuel use and embracing renewables.
We’re already experiencing the effects of a changing climate—torrential flooding,devastating wildfires, and prolonged droughts, just to name a few. We know that every
day we fail to act brings us closer to a tipping point with even worse consequences.
So what can we do to create a more sustainable, energy-efficient world?
Innovation led us to where we are today, and innovation can put us on a more viable
path. From improving the way we produce and deliver energy to changing how wedesign electronic systems, there are measures our industry can take right now toensure that all we’ve built will endure. Synopsys is doing our part, innovating products
and solutions that enable our customers to drive radical energy efficiencies in theirchip designs and products.

GOVERNANCE

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A Holistic Approach to Energy-Efficient Design
Using Synopsys’ end-to-end design andcan bring substantial energy savings. Along

SIGNOFFverification solutions, our customers havewith these strategies, macro-architectural

An approach centered on signoff for power anddemonstrated significant energy efficiency

tradeoffs for power-performance, as well

power integrity targets, along with dynamic andgains by applying a holistic, software-driven

as intelligent IP selection, can deliver power

leakage power recovery with surgically precise

approach across design phases, fromsavings of 30% to 50%.

engineering change order (ECO) changes, canarchitecture to sign-off.

yield 5% to 10% power savings.
LOGIC DESIGNSOFTWARE

Power savings of 15% to 30% can be achieved

VERIFICATIONThe software does a lot of the heavy lifting,through micro-architectural tradeoffs for clock,Centering verification efforts on the verification

orchestrating power management in the chip

data, memory, and glitch power, and throughof Unified Power Format (UPF) power intent

and determining critical scenarios for power

finding and fixing register transfer level (RTL)and UPF-driven functional verification cananalysis and optimization during SoC design.

power blocks and using tool-guided clock

contribute to greater energy efficiency.

To ensure maximum energy efficiency ingating, data gating, and memory sizing.

the SoC, it’s therefore critical to profile andoptimize the software.

Click here for a deeper dive into how Synopsys
IMPLEMENTATION

technologies are driving energy efficiencies and

10% to 15% power savings can be achieved bya more sustainable world.

ARCHITECTURE

applying automatic optimization in areas such

Power management strategies such as

as dynamic and leakage power, power-aware

dynamic voltage and frequency scaling

test pattern generation, and power integrity with

(DVFS), power domains, and voltage islands

power, performance, and area (PPA) tradeoffs.

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Driving Efficiencies Through AI
AI is changing our lives. From technologies like self-

Synopsys’ Design Space Optimization AI (DSO.ai) is

driving cars and smart wearables, to advanced voice

our flagship chip-design application. We have designed

recognition behavioral and predictive algorithms thatit so that our customers can search through billions

speed and simplify tasks behind the scenes. Everyof potential optimization solutions across chip design,day, AI models become more complex, delivering

utilizing reinforcement learning to reduce energy

world-changing capabilities. Over just the past two

consumption and enhance performance. Results

years, Transformer Models have become 275 times

reported by our customers include 25% reduction in

more complex, able to extract meaning from content

turnaround time and compute resources and up towith less need for human intervention.

30% power reduction.

As AI models become more complex, the power

Learn more about Synopsys’ AI Solutions.

required to run them increases.Training a single
model can consume energy equivalent to multiple
U.S. households’ annual footprint.
Addressing this energy usage is a major focus for AI
research, and at Synopsys we’re solving the challenge
using the most powerful tool at our disposal: AI itself.

“Our collaboration with Synopsys
on DSO.ai exemplifies how AI canlead to disruptive design solutions,revolutionizing the way we design
automotive products.”— Satoshi Shibatani, Director, Digital Design
Technology Department, Renesas

Photo Credit: Nakul Jain, Synopsys Employee, India

CEO LETTERABOUT SYNOPSYS

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APPENDICES

Low Power Computing

Reducing Power at the Design Stage

Synopsys has been working on a software-driven

Complex interactions between a hardware systemthroughput for design teams that need multiple

low power platform of products and solutions thatand its software can have a dramatic impact on

iterations per day. The power profiles generated byallow our customers to achieve an additional 25%

the system’s power use. Until recently, the options

ZeBu Empower provide actionable information that help

power reduction for the systems-on-a-chip (SoCs)

for gauging software’s power impact in the design

hardware design teams find power bugs and improve

they design. Through this platform, we’re equipping

stage were limited. One option was to run numerous

hardware architectures. For the first time, software

semiconductor manufacturers and the broader

software simulation scenarios on the target design—

teams can optimize their operating systems and drivers

electronics industry with the tools to build products

a costly and time consuming process. Emulation

to minimize overall power consumption. The result isthat are not only better and faster, but also use lesstechnology yielded faster results, but the technology

lower power products for more applications.

energy per unit of work they do.

is primarily aimed at functional verification of2022 ESG Report22

the target system. Tuning it to measure power

We enable our customers
to achieve an additional
25% power reduction for
their SoCs.

consumption typically requires additional modelingand calculations that can also be time consuming
and error prone.
To address this, Synopsys’ developed ZeBu Empower,
the industry’s first and only emulation system purposebuilt for power profiling. Developed for the scale andcomplexity of large vector sizes and complex billiongate designs, ZeBu Empower’s emulation hardware
and software is architected to achieve maximum

Photo Credit: Tiago Trigo, Synopsys Employee, Portugal

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

Delivering Low Power Processor IP
The core technology, or Neural Processing Units (NPUs), that run
AI algorithms provide an important opportunity to optimize system
performance and energy efficiency. To realize these gains, Synopsys
developed the ARC NPX6 and NPX6FS NPUs.
These devices deliver the industry’s highest performance and support
for the latest, most complex neural network models. The ARC NPX6
NPU addresses the demands of real-time compute with ultra-low power
consumption for AI applications. The ARC NPX6FS NPU meets stringent
functional safety requirements for automotive applications, while its
power efficiency helps conserve electric vehicles’ battery charge anddriving range.
A comprehensive development environment is part of the product,
making software development and validation more efficient and reliable.
Major companies such as Infineon and Kyocera rely on Synopsys
processors to build their products.

GOVERNANCE

APPENDICES

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2022 ESG Report

24

Addressing Our Own
Operational Impact
Environment Strategy and Management Approach
Our ESG Management Team propels Synopsys’sustainability commitment. To set environmental

environmental strategy and guides its execution, withexpectations in our hardware supply chain, we

input and direction from the executive-led Emissions

leverage industry collaborations such as the

Reduction Task Force and cross-functional ESG

Responsible Business Alliance (RBA).

Leadership Committee. We review performanceagainst our goals and adjust our approach as needed.

In 2022, we elevated and expanded the ambition of
our climate commitments, developing new near-term

Across Synopsys’ operations, we focus on measuring

Scope 1, 2, and 3 targets aligned with SBTi. We haveand reporting our energy use, identifying improvement

submitted these targets to SBTi and expect to receive

opportunities, and taking specific decarbonization

their review and validation in 2023.

actions to meet our emissions reduction targets
and achieve CarbonNeutral® company certification,
annually. We also incorporate sustainability into thedesign and operation of our facilities and work to
mitigate global electronic waste. Our contracting andprocurement processes aim to advance sustainability
by seeking partners that demonstrate their own
Photo Credit: Kiran Maddhula, Synopsys Employee, India

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2022 ESG Report

APPENDICES

25

Green Teams: Engaging for
the Environment

Expanding Greenhouse Gas Emissions Commitments
In 2020, we committed to reduce our Scope 1 and 2

In 2022, our decision to join SBTi and to align our

In 2022, Synopsys’ employee-led Greenemissions by 25% by 2024 from a 2018 baseline.

goals with limiting global warming to 1.5ºC above pre-Teams continued bringing our people

industrial levels, required an update to our Scope 1 andtogether to advance sustainable practices

In spite of an over 35% increase in revenue and an

2 emissions commitment, as SBTi requires the target

and reduce environmental impacts at bothincrease in employee headcount of almost 25% fromyear to be at least five years into the future. We havethe local and global levels.

2018 to 2021, our Scope 1 and 2 emissions were

now submitted a new target for SBTi for review. We will

just 0.2% higher than our 2018 base year emissions.

continue our annual emissions inventory and review

At Synopsys Armenia, a Green Team led

While we have made progress with emissions, ouragainst our target.

the company’s efforts to introduce waste

progress was less than we anticipated due to greater

sorting and recycling in our offices—part of athan projected growth of the business as well as a

In addition to resetting our Scope 1 and 2 target, wemovement of corporate, NGO, and volunteer

change in the fuel mix for the electricity supplied toare expanding our emissions reduction commitments

efforts that helped pioneer recycling across

our California colocated data center. This change wasto capture almost 70% of our total base-year Scope 3

the country in 2022. Synopsys Armenia also

derived from a drop in the availability of hydropower

emissions. These new Scope 3 commitments extend

continued its annual efforts with My Forest

used by the utility supplier to produce low-carbon

across our value chain and target intensity reductions

Armenia to help replant trees in forests thatelectricity, due to water shortages and wildfires. As ain emissions from employee travel and customer use

were harvested for firewood during crises inresult, the utility was forced to meet power demandsof our sold hardware products. We are also committing

the 1990s. Synopsys has been working withby employing fossil-fuel-based energy such as natural

to engage our vendors to promote increased adoption

My Forest Armenia to estimate emissions

gas, which significantly increased the emissionsof science-based targets in our supply chain. We

reduction from planted trees to date andintensity of the electricity supply for our data center. If

look forward to publicly announcing our new targets

future tree-planting efforts.

this situation had not arisen, our 2021 emissions would

following SBTi’s review.

have registered 14% below our 2018 emissions.

Photo Credit: Gayane Markosyan,
Synopsys Employee, Armenia

CEO LETTERABOUT SYNOPSYS

ENVIRONMENT

GHG Emissions Summary Table

SOCIAL

GOVERNANCE

APPENDICESCY2019
MTCO2e*CY2020
MTCO2eCY2021
MTCO2eFugitive Emissions (Refrigerants)

1,159

1,400

1,601

Natural Gas Combustion

2,942

1,232

2,340

Diesel Fuel Combustion

14

14

38

Mobile Emissions

694

396

125

TOTAL SCOPE 1

4,809

3,041

4,104

Offices

17,385

12,748

13,636

Colocated Data Centers

11,50010,143

16,582TOTAL SCOPE 2 (MARKET)

28,88522,891

30,218

Air & Road Business Travel

28,244

6,602

2,200

Employee Commute

22,884

7,360

5,514

-

3,636

3,749

8,639

5,794

8,072

Operational Waste

538

144

777

Product Transport

1,550

1,060

2,401

6

4

10

TOTAL SCOPE 3

61,86024,60022,723TOTAL EMISSIONS

95,55450,532

57,044SCOPE 1 EMISSIONSSCOPE 2 EMISSIONS (PURCHASED ELECTRICITY)

SCOPE 3 EMISSIONS

Employee Work-from-Home
Fuel and Energy Related Activities

End-of-Life of Sold Products* Prior years updated due to changes in methodology.

Our emissions data represents the best information available today.
We will continue to update our methodologies for calculating GHG
emissions based on emerging best practice and improve upon ourdata quality and accuracy as new information comes available.

2022 ESG Report26CEO LETTERABOUT SYNOPSYS

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2022 ESG Report

27

Growing Our Renewable Energy Portfolio
In summer 2022, Enel Green Power’s Azure Sky hybrid

Globally, we continue to explore new renewables procurementwind project came online in Throckmorton County, Texas.

opportunities across our operating regions. In Bangalore, India,

Combining a 350 megawatt (MW) wind farm with a 180

we signed a power purchase agreement (PPA) for 400,000

megawatt-hour (MWh) battery storage facility, the project iskilowatt hours of wind capacity per month. Our current

expected to generate approximately 1.3 terawatt hours (TWhs)

commitment covers the period of March 2023 to March 2025,of renewable energy annually—enough to power more thanwith the option to renew. We are exploring short- and longer-term

118,000 U.S. households and save more than 842,000 tons ofcontract options for our other India office locations, as market

CO2 emissions annually.

conditions and economic feasibility allow. We are also in theprocess of securing a Solar Power agreement, which will be an

Synopsys has been integral to Azure Sky’s development. Alongalternate source to the existing wind power supply in Bangalore.

with three other companies, we signed one of the largest
corporate aggregated virtual power purchase agreements(VPPA) at the time in the U.S. This agreement secured for
Synopsys a portion of the project’s output, representing
approximately 40,000 MWhs per year, approximately 50% of
our 2022 North American energy demand. Since Azure Sky
began operations, monthly reporting has shown Synopsys
achieving financially positive returns on its contract, validating
both our investment and our commitment to climate action
through innovation, partnership, and collaboration.

Photo Credit: Erika Varga McEnroe, Synopsys Employee, United States

CEO LETTERABOUT SYNOPSYS

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APPENDICES

Boosting Data Center Sustainability
In 2022, we progressed a multi-year initiative to

To give us direct, real-time visibility into data center

In 2023, we will continue working with data center

optimize our global data center footprint, working

power usage—down to the level of each individual

providers to mitigate the climate impact of our growthinternally across business units and externallyserver in a given rack—in 2022 we began using theand secure commitments to renewable energy as wellwith our vendors to consolidate and decarbonize

Sunbird Data Center Infrastructure Management

as alignment to science based targets. In Eindhoven,these operations while continuing to support rapid(DCIM) tool for all of our owned data center assets.

Netherlands, we have signed a new five-year contract

business growth.

Using this tool, our teams can optimize power-intensivewith a data center that will provide 100% energy fromcooling to achieve greater than 90% efficiency.

wind, solar, or hydroelectric dams, with emergency
backup power fueled by green hydrogen. We alsoOver the course of the year, we closed 10 inefficient
on-premise data centers, bringing our total closures

In addition to managing our consumption at theextended our partnership with a colocation provider

to 21 since summer 2021. Largely acquired throughserver level, we are also addressing energy inflows.

in India that has committed to sourcing renewablemergers and acquisitions, these on-premise centers

To extend our renewable energy commitments

energy for our future growth and expansion, as

are frequently equipped with outdated servers andthrough our data center partners, we have begun

regulatory and market availability can support.

other technology, are inefficiently cooled, and areincluding language in our data center providers’located in regions where the grids continue to rely

master service agreements requiring that providers

on more carbon-intensive energy sources. Based onaffirm a significant commitment to renewables before

our current plans, by 2024, our optimization initiative

beginning any new contract with Synopsys. Ideally,

will have transitioned 1.58 MW of data processing

this will provide for 100% renewable energy unlesscapacity to assets and colocation providers that areprohibited by regulatory/market availability, in which

both more energy-efficient and located in regions withcase we will work internally to mitigate the remaining

less carbon-intensive grids.

dirty power through VPPAs or other mechanisms.

2022 ESG Report28CEO LETTERABOUT SYNOPSYS

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APPENDICES

Building Sustainable Facilities
The operations of our facilities have historically

Schneider Electric’s Resources Advisor andaccounted for nearly 50% of annual CO2 emissions

Brightworks’ Building OS to give us a better

annually, from Scope 1 and 2 sources.* Though

understanding of our carbon, waste, and water

Synopsys leases the majority of our facilities, wefootprints. Synopsys also works with sustainability

have a goal to reduce our owned facilities’ impacts,

associations such as the Clean Energy Buyers

working to integrate high standards of environmental

Association (CEBA) and other groups with a specificperformance from design through use. For new

focus on facilities.

building construction and renovation, we seek
certification from the U.S. Green Building Council’s

In 2021, Synopsys became a signatory to CEBA’s

Leadership in Energy and Environmental Design

Commercial Real Estate Principles, a tool to support(LEED) program. For existing buildings, we work withincreased data transparency, energy efficiency, andour vendors and consultants to achieve LEED criteria

renewable energy procurement in commercial realas feasible. Currently, Synopsys occupies 1.3 million

estate. The principles outline key areas of partnershipsquare feet of LEED-certified office space around theand transparency between tenants and landlords.

world, 39% of our total square footage.

Since a large amount of square footage we utilize isleased, engagement with our landlords is pivotal to

Furthermore, we are working to implement new
software solutions and tracking tools such as* As evidenced from the data in our 2020 and 2021 GHG Inventories.

achieving our renewable energy and climate goals.

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APPENDICES

30

Carbon Offset Projects
Through our partnership with Climate Impact Partners,
Synopsys invested in the following carbon offset
projects in 2022:
Albany Water | Improved Forest Management |Darkwoods Forest Conservation | Improved Forest

Improved Rice Cultivation | Soil Carbon andSolar Water Heating | Micro Renewables |United States

Management | Canada

Agriculture | China

India

This project permanently protects the watershed

In 2008, a project developer purchased approximately

This project creates controllable irrigation and drainage

This project provides solar water heaters forof the Alcove Reservoir, Basic Creek Reservoir, and63,000 hectares (156,000 acres) of private boreal

infrastructure (ditches and reservoirs) essential forresidences, small and medium-sized enterprises, andTroutner Lake. It provides clean water, protects

forest to protect it from subdivision, high-impact

conserving water, increasing production, and reducing

institutions in India, driving greater uptake through6,000 acres of land, and provides critical habitat andlogging, and other environmental threats. The

methane emissions from rice paddies. The project also

awareness programs at schools and general public

ecosystem protections for fish, amphibians, and otherproject zones and monitors different areas of theprovides trainings that empower women as technicians

exhibitions. Benefits include energy savings and climate

aquatic species. Learn more here.

property, targeting specific areas for strict biodiversity

in program deployment, contributing to economic

protection, job creation for women as managers, andprotection, invasive species control, conservation

growth through job creation. Learn more here.

job training for others. Learn more here.

research, and a low level of sustainable harvesting.
Learn more here.

CEO LETTERABOUT SYNOPSYS

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APPENDICES

Assessing Climate Risks
and Opportunities
We undertake various assessments in order to understand and evaluate

We report on our climate-related practices using fourrisks and opportunities that are relevant for our business, including aleading assessment frameworks:

climate risk and opportunity assessment, which we refresh periodically,
including in 2022.

The CDP Climate Change survey, where weannually disclose our potential climate impacts,

To date, our risk assessments have not identified significant climate

risks, and opportunities

risks to our overall business, strategy, or financial planning related
to transitional aspects of climate change such as carbon pricing,

The RBA self-assessment questionnaire andstakeholder expectations (reputation), and legislation, or the physicaltools, to assess operational performance onrisks of climate change. Nevertheless, we are committed to taking

shared metrics and share with customers

responsibility for our carbon footprint as part of our ESG strategy andin alignment with the expectations of our key stakeholders. We factor

EcoVadis assessments, to evaluate ourcosts associated with the delivery of our annual GHG accounting, carbon

sustainability practices and make accessible

neutral commitment, and emissions reduction initiatives into our annual

to our customers

financial planning. We understand the carbon intensity of our operations
and supply chain impact, and we work continually to mitigate these

The Task Force on Climate-related Financial

impacts as technologies allow.

Disclosures (TCFD), to provide investors withinformation on climate-related risks to our

For more information on physical risks see Business Continuity and Resiliency.
See our risk and opportunity screening in our TCFD Index for more details.

products, operations, and supply chain

2022 ESG Report31CEO LETTERABOUT SYNOPSYS

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32

2023 Environment Goals
Establish a new governance structure and management
program to incorporate our new GHG emissions reduction
targets into strategic planning and review cycles
Increase renewable energy procurement in the U.S. andSouth Asia
Advance energy efficiency and renewable energy use fordata centers
Develop plans to address our major Scope 3 emissions
categories related to employee travel, use of sold hardware
products, and our purchased goods and services, including
our hardware manufacturing supply chain

See the Business Continuity and Resiliency section of this report for more
on climate risk and the Supply Chain section for more on how we areengaging suppliers on our climate strategy.
Photo Credit: Leo Lu, Synopsys Employee, Taiwan

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33

04
Social2022 Social Highlights
Our People
Social Impact
2023 Social Goals

Photo Credit: Donna Mabry, Synopsys Employee, United States

CEO LETTERABOUT SYNOPSYS

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APPENDICES

To help shape a Smart Future, Synopsys

34

UN SDG Alignment

must remain at the forefront ofinnovation—day after day, year after

We are committed to working with ourpartners to enable equitable educational
opportunities for youth and adults,
fostering technical skills, and access toemployment opportunities in our industry.

year. To do so, we focus on our people,
ensuring our ability to recruit, support,
and retain the most talented, diverse
teams. From there, our circle of impact

We are committed to pursuing diversity
and pay equity in our teams andtalent pipelines, encouraging women’s
empowerment, and providing equal
opportunities for people of all genders,ethnicities, ages, and orientations at
all levels of decision making. To fostera culture that promotes equity, we set
and make progress towards gender anddiversity goals and invest in inclusion anddiversity trainings for all employees.

expands outward, helping develop thenext generation of innovators throughscience, technology, engineering, andmath (STEM) education investments andacting as a catalyst for local and globalchange through our commitment toAs part of our work to improveglobal access to affordable, reliable,
and sustainable energy, we support
organizations that facilitate the transition
to renewable energy and focus onconservation efforts for all communities.

communities and the environment.

We are committed to fostering learningand skills development, helping build astronger and more resilient enterprise,and supporting a more sustainable andjust future for all. Internally, we invest in
employee learning and development.

Photo Credit: Tasleema Shaik Moham, Synopsys Employee, India

See our UN SDG Index to learn more about how Synopsys’ people
and social impact strategy supports these SDGs.

CEO LETTERABOUT SYNOPSYS

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2022 ESG Report

APPENDICES

35

2022 Social Highlights
At Synopsys, we create the world’s most advanced technologies forchip design, verification, IP integration, and software security andquality testing. We work at the heart of technology, and we know theheart of our business is the talented individuals in our workforce.

24.9%

86%

$4.7M

Our hiring rate for women rose by
0.9% from fiscal 2021, bringing
the total representation of women
globally to 24.9%

Over 86% of managers completed
our Inclusive Leader course

We provided $4.7M in total
charitable giving to thecommunities in which we operate

12.4%

2

$1.4M

Women in senior level positions
comprised 12.4% of all senior-level
positions at the company

We conducted two Come
Together employee engagement
surveys, which gauged employee
sentiment

Synopsys employees donated$1.4M and reported 13,978volunteer hours through our
Synopsys for Good portal

30%

2

52

We increased BLI
representation in our U.S.
workforce by approximately 30%
from fiscal 2021

We launched new Onboarding andExiting Survey programs

Our three-week Season of Service
volunteer program engaged
employees in 52 projects in 11
countries

In fiscal 2022, we increased our total employee headcount byapproximately 16%. Like our technology industry peers, however, ourfiscal 2022 also saw an increase in undesired employee turnover,which totaled 6.9% as of our fiscal year-end.*
Throughout the year, we continued our work toward a more diverse
and inclusive culture and delivered positive social change throughcorporate and employee giving and volunteering.

*

We calculate undesired turnover rate by dividing the number of undesired
exits from Synopsys by the average headcount for fiscal 2022, and we define
undesired turnover as exits by high-performing employees who resigned from
Synopsys (or its subsidiaries) to pursue other work opportunities. Undesired
turnover does not include employees with low performance or whose
resignation was mutual or due to personal reasons, such as retirement andreturning to school.

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTOur People

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APPENDICES

People Strategy and Management Approach

Driving a Smart Future for our customers

Our People Team, led by the People and Workplaceretention, and leadership succession planning as

and the world requires attracting andResources Officer, is a key driver of the employee

performance criteria that are considered by our

retaining the brightest talent in every part ofexperience at Synopsys. The team operates from

Compensation and Organizational Developmenta core set of guiding principles and continuously

Committee when establishing incentive goals forevolves our talent strategy to align with internal

our executive officers. This reinforces that inclusionbusiness objectives and the ever-changing market.

and diversity (I&D) are a key part of our culture andour enterprise. Synopsys remains committed
to supporting, engaging, and optimizing our
employees’ capabilities and experiences

amplifies the importance of executive involvement tothroughout their careers, within a culture

Our talent strategy helps Synopsys pursue anddefined by our values of integrity, execution

achieve a high level of employee engagement, withexcellence, leadership, and passion.

36

advance our progress.

all leaders and managers feeling accountable forLearn more about our people-related policies anddelivering a positive employee experience. Our values-commitments, the focus areas of our talent strategy,

driven culture gives us a strong foundation to create aand how we regularly engage with employees.

thriving workforce that enjoys robust opportunities togrow and learn internally. We leverage our collective
experiences and our individual expertise andperspectives to help drive Synopsys forward.
The People Leadership Team provides quarterly
reports on human capital performance to theCompensation and Organizational Development
Committee of the Board of Directors. In 2022, weadded workforce metrics such as diversity, employee
Photo Credit: Gayane Markosyan, Synopsys
Employee, Armenia

CEO LETTERABOUT SYNOPSYS

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APPENDICES

Fostering an Inclusive Culture•

Launched NEX-GEN, a new ERG for early-career

Synopsys is a vibrant community and destination

Month, Pride Month, Women’s History Month,

for top talent. In a year characterized by geopolitical

Global Diversity Awareness Month, and discuss

instability, continued pandemic concerns, andtopics related to neurodiversity, veterans, andunprecedented competition for talent, we remained

Asian-Americans and Pacific Islanders (AAPI).

committed to diversifying our workforce andIn 2022, we added Juneteenth to our list of paid

to better understand talent pool diversity and gain

cultivating an inclusive and welcoming culture.

holidays in the U.S.

insights that help mitigate bias in the application

professionals at Synopsys South Asia•

Expanded collection of voluntary applicant data

screening and interview process
Through continued investments in I&D, we boosted•

Attended our first national conference for•

Hosted Why it Matters, an executive briefing

representation of women globally to 24.9% and U.S.

awareness and recruitment of Indigenous

BLI representation reached 5.8% of our U.S. workforce

peoples of North America and the Pacificwhere ERG representatives shared theirin 2022. To improve performance and results acrossIslands, and participated in additional talent

perspectives on I&D’s importance and what

both recruitment and I&D, we:recruiting events to connect with Black andleaders can do to help advance I&D at Synopsys

Latinx talent••

Incorporated Act for Impact performancemeasurement into our annual Performance Review•

process, involving every Synopsys employee in

Launched an I&D Resource Hub with learning

Program, providing full graduate tuition and paid

pathways and resources available to all employees

summer internships for MS- and PhD-level BLI
students in engineering and science

shaping and advancing our inclusive culture••

Grew our Employee Resource Groups (ERGs) andContinued and expanded our Celebration andfacilitated education and awareness events on

Education Series. We annually celebrate Blackbehalf of ERG communities

History Month, Juneteenth, Hispanic Heritage

Doubled our investment in the GEM Fellowship•

Continued conducting an annual pay equity review
to assure all Synopsys employees in similar roles
are compensated fairly for their skills and expertise2022 ESG Report37CEO LETTERABOUT SYNOPSYS

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APPENDICES

Looking toward 2023, we are committed to building
rich and diverse talent pipelines for the organization
through greater investments in our FUTUREx internshipprogram and early career recruitment programs.
We are also elevating the recruitment experiencethrough technological investments, with the intentionof creating a personalized journey for each candidate.
We’re continuing our work to increase representation of

FUTUREx in ’22

women globally and of BLI employees in the U.S.
In 2022, Black, Latinx, and Indigenous (BLI)In 2022, 1,230 students

representation in our U.S. workforce increased by 30%

at various stages of theirfrom fiscal 2021, reaching 5.8% of our U.S. workforce.

academic careers participatedin Synopsys’ global FUTUREx
internship program (formerlyInternX).
This contributed to 29% of all
full-time roles being filled by
new college grads.

2022 ESG Report38CEO LETTERABOUT SYNOPSYS

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2022 ESG Report

APPENDICES

39

Diversity Metrics Snapshot
Gender Representation(Global)

2022
2021
2020

20%

<1%

<1%

1%

<1%
0%

46%

<1%
0%

88%
Men

Men

83%

18%
17%

51%

0%

88%

84%

48%
Women

Women

23%

Undisclosed

Women
Undisclosed

21%

82%

<1%
0%

12%
11%

16%

<1%

89%

12%
Women

22%

25%

<1%

49%

Senior Level Positions

Undisclosed

80%

76%

24%

54%

Women

Men

Men

79%

People Managers

52%
Men

78%

75%
76%

Non-technical

Undisclosed

Technical

Undisclosed

Overall

<1%
<1%
<1%
Photo Credit: Preeti Prajapati,
Synopsys Employee, India

CEO LETTERABOUT SYNOPSYS

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40

2020

2021

2022

Ethnicity Representation(U.S. Ethnic Diversity)

2020

2021 2022

Overall

2020

2021 2022

Non-technical

Senior Level Positions

Asian

53%

51%

50%

Asian

27%

25%

26%

Asian

51%

51%

52%

White

40%

41%

40%

White

59%

61%

58%

White

42%

42%

40%

Hispanic or Latino

3%

3%

4%

Hispanic or Latino

7%

7%

7%

Hispanic or Latino

2%

2%

3%

Black or African American

1%

1%

2%

Black or African American

3%

3%

3%

Black or African American

1%

1%

1%

Other*

1%

2%

1%

Other*

2%

2%

2%

Other*

1%

<1%

1%

Undisclosed

2%

2%

3%

Undisclosed

2%

2%

4%

Undisclosed

3%

3%

3%

Technical

People Managers

Asian

58%

58%

57%

Asian

52%

50%

50%

White

36%

36%

35%

White

42%

44%

42%

Hispanic or Latino

2%

2%

3%

Hispanic or Latino

2%

3%

3%

Black or African American

1%

1%

1%

Black or African American

1%

1%

1%

Other*

1%

1%

1%

Other*

1%

<1%

1%

Undisclosed

2%

2%

3%

Undisclosed

2%

2%

3%

* “Other” is defined as American Indian or Alaska Native, Native Hawaiian or Other Pacific Islander, Two or More Races.

Photo Credit: Marcela Lopez Ojeda, Synopsys Employee, Mexico

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

Talent Strategies

engaging leaders at all levels, and driving foradvance next-generation technology.
We know that focusing on our employees’knowledge, skills, and satisfaction throughout

Synopsys conducts a comprehensive annual review to ensure pay
equity across similar roles, with follow-up from People and Workplace
Resources in cases of potential disparity. In 2022, women at Synopsys

what’s next and what’s possible, Synopsys
is developing the people to discover and41

Taking Action on Pay Equity

Investing in Our People
By fostering an “always learning” culture,2022 ESG Report

APPENDICES

Learn

earned an average of $0.99 for every $1 men earned in the same position

Foster an Always Learning Culture

and location, and U.S. BLI employees earned an average of $0.99 for•••Reframe learning
Make it easy and relevant
Focus on outcomes

every $1 earned by white employees.

their careers not only supports their personalgoals and wellbeing, but also helps Synopsys
become a stronger, more creative, and more
resilient enterprise. Across the company,
our Learn, Lead, Grow strategy puts those
aspirations into practice, delivering relevant,

Lead
Engage Leaders at All Levels•••

Reinforce smarter teamwork
Accelerate leadership success
Advocate for inclusion and diversity

outcomes-oriented training; ensuring ourmanagers have the skills to motivate theirteams and set individual team members up
for success; and promoting a vibrant, engaged
work environment for all.

Grow
Accelerate for What’s Next and What’s possible•••

Increase knowledge of Synopsys’ strategy and goals
Drive vitality and world-class engagement
Cultivate a vibrant internal talent environment

Photo Credit: Mohammed Ghassan, Synopsys Employee, India

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

2022 ESG Report

APPENDICES

42

Updated our buddy resources to deliver more

for new challenges and promoting advancementfrom Q3 to Q4. On our Synopsys Learning page, weon the challenges they face and to thrive from day

specific guidance on actions for new hires’and retention. Through our Degreed digital learning

promoted more than 125 internal and vendor-led

one onward. Synopsys’ onboarding process engages

prestart, first day, first week, and first month,platform and instructor-led learning sessions, welearning opportunities during Q4, spiking site views toand welcomes new hires with content focused onalong with greater detail on setting expectations

encourage our employees to curate, create, share,

19,000 for the quarter to facilitate employee growth

our global culture, values, and regional/local topics.

and the importance of the buddy roleand discuss what they are learning, helping cascadeand development.

We work to ensure our people are equipped to take•the skills and capabilities we need as an enterprise

We aim to drive vitality and instill a “Yes, if” mindset
Introduced a new three-tier listening strategy

to meet current and future challenges. In 2022, we

In Q4, we implemented an analysis tool that provides(1 week, 1 month, 1 quarter) with a coordinatedrefined Degreed to yield better search results andexplicit data on searches and success rates in our

global/cross-functional team to address feedback

point more clearly to content curated and created

SharePoint sites, allowing us to better understandIntroduced an improved New Hire SharePoint site

quickly and identify local opportunities forby Synopsys. We also completely redesigned all ofactivity and make continued improvements.

that received more than 25,000 quarterly visits,

improvement

our SharePoint sites for learning, technical training,

through world-class engagement for our new hires. In
2022, we:••and manager resources, making them easier toproviding helpful content for new hires, managers,
and buddies

As Synopsys employees advance in their careers,navigate. Together, the sites registered significant

our training framework builds new competencies

usage following their Q2 relaunch, with nearly 100,000

on established foundational skills, equipping people

page views during FY22 and a 40% increase in traffic

Photo Credit: Tiago Trigo, Synopsys Employee, Portugal

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

APPENDICES

2022 ESG Report

43

Our leadership training teaches and reinforces the skills to attract,
retain, and develop talent in today’s competitive environment. In 2022:•

We offered 104 instructor-led courses, totaling 600 teaching hours•

Approximately 55% of managers completed our Compass
Leadership Development Essentials Course, which coaches
managers on their role, the business, and how to inspire, direct,
and recognize their team•Over 86% of managers completed our Inclusive Leader instructorled series, which enables managers to expand their understandingof inclusion while engaging with peers in a game-based setting

We employ various metrics to measure and report on the successof our training programs. For instructor-led training, we measurecompletion, net promoter score, and class fill rate. For on-demandcourses, we measure access to platform, type of information
accessed, and any sharing or posting of additional content. For
SharePoint, we measure access by site, page, and document.
In 2023, we will continue investing in our people with immersive
training opportunities to position leaders to be effective in an everchanging environment, and by expanding top-tier, on-demand learning
experiences to give our early career employees a strong foundation.

Photo Credit: Satenik Barseghyan, Synopsys Employee, Armenia

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

APPENDICES

2022 ESG Report

44

Driving Employee Connection and Engagement
For Synopsys, learning about our people’s needs,

Our most recent SHAPE survey, completed in

Finally, we conducted a Come Together Survey atopinions, and priorities is a continuous process, as isNovember 2022, showed that despite significant

corporate headquarters, which gauged employee

building the capability of our leaders and managers

organizational change and growing uncertainty

sentiment. Through analyzing survey results andto drive the types of meaningful change our people

in global markets, our overall engagement scoreproviding managers with post-survey guidance andwant. In 2022, with many in our workforce remaining

remained very strong at 80. Scores for “I would

suggested actions, the surveys helped our leaders andon a hybrid work model even as COVID-19 waned, werecommend Synopsys as a great place to work”

people managers lead more effectively as we returned

promoted connection through frequent casual andwere strong at 82, and measures of employee

to an in-person environment. In addition, our Ethics &personal communication, as well as formal employee

satisfaction were above industry average at 78.

Compliance and Internal Audit teams periodically use

listening mechanisms.

Survey participation reached its highest level ever,culture surveys at various sites around the world.

with approximately 90% of our employee population
Our semi-annual SHAPE Synopsys surveys give

participating.

For 2023, we will continue maturing and expanding
our employee listening program in support of specificemployees a chance to share their experience;create conversations about who we are, where we’re

In 2022, three new targeted surveys joined SHAPE

business needs. Our plans include providing moregoing, and how we connect with each other and ourto improve how we listen. Our Onboarding Survey

direct post-survey support, including extra support for

work; and influence management efforts across theis part of how we help new employees acclimate

leaders and teams facing difficult situations.

organization to make Synopsys an excellent place

to the Synopsys environment, assuring they haveto work. This year we enhanced SHAPE throughthe tools, support, and guidance to thrive. At the

improved communications and renewed action-taking

other end of the employee life cycle, our new Exiting

resources to further empower all employees to be part

Survey provides critical feedback to help us improveof cultivating a highly engaged work environment.

engagement and reduce attrition.

Photo Credit:
Satenik Barseghyan, Synopsys Employee, Armenia

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

APPENDICES

2022 ESG Report

45

Wellbeing and Total Rewards
Total Rewards at Synopsys is designed to offer meaningful benefits andcompensation for the time, energy, commitment, skills, and expertise
employees bring to the organization every day. While specific programs are
determined by where an employee lives and works, Synopsys is committed
to ensuring that all employees and their families can maintain their healthand overall wellbeing, to grow and thrive personally and professionally.
In the U.S., our Total Rewards profile includes but is not limited to:•Market-competitive salary and cash bonus opportunity•

Robust medical, dental, vision, and wellness benefits•

Financial planning tools and employee assistance plans•

Comprehensive leave alternatives•

Employee Stock Purchase Plan (ESPP)•

Equity compensation•

Employer-provided life insurance•

Employer-sponsored 401(k) retirement plans•

Student loan repayment assistance•Parental resources, surrogacy and adoption benefits, and familyplanning travel and lodging allowance•

Matching Gift program for employee donations

Photo Credit: Priyanka Patil, Synopsys Employee, India

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

2022 ESG Report

APPENDICES

Continuously Improving Benefits

Lyra Employee Assistance Program. Lyra provides

risk and exposures, we constantly evaluate our

In 2022, we added a cancer concierge benefit managed throughconfidential support for our U.S. employees and theiroperations and take appropriate mitigating actions.

Navvisa, a partner that provides patients and caregivers with expert,

family members, including 24/7 counseling and referrals

In 2022, as more employees returned to an in-person

one-on-one guidance from a personal oncology nurse throughout theto therapists and coaches for work, family, or personal

work environment, we provided resources including

cancer journey. This service started as a pilot program in 2021 and isissues. Synopsys pays for a specific number of sessions

personal protective equipment, COVID-19 test kits, andnow available to all U.S. employees at no cost.

for employees and each eligible family member per year.

one-on-one ergonomic consultations.

In 2023, we will add gender affirmation benefits through

Caregiver Resources. To assist working parents

We continue to make investments in global

UnitedHealthcare and Kaiser Permanente.

transitioning back to the office, Synopsys offers Brightemergency response and preparedness programs,

Horizons programs that include short- and long-term

refining our ability to monitor geopolitical and climate

Tackling Student Debt

backup childcare, eldercare, and pet services (all at

risks and provide employees with early warnings so

Student debt in the U.S. has spiraled to over $1.7 trillion in recent

reduced cost), along with Rethink, a U.S.-based resource

they can initiate response. In 2022, we tested our

decades, saddling some 45 million Americans with obligations thatfor caregivers of children with neurological differences.

SynopsysALERT emergency notification system

impact their ability to buy a home, start a family, and develop a

We also launched Ways & Wane this year to help our busy

in every region where we have employees andcareer. One way we are doing our part to alleviate this burden andcaregiver employees solve eldercare challenges such as

operations. In actual emergencies, we also conduct

help employees focus on the future is by offering an extra $400 per

arranging housing and in-home care.

safety and wellbeing checks, positioning us to provide

46

care and assistance to employees and their families.

month (up to a lifetime maximum of $24,000) to help clear federal
student loan debt. Since launching this benefit in 2021, we have seen

meQuilibrium. Available to our employees in Canada,

participation grow 40% year-over-year.

Chile, Europe, India, Mexico and the U.S., this stressmanagement app helps employees avoid burnout, build

Supporting Balance

resilience, and focus on what’s important.

Synopsys is committed to helping our employees achieve balance intheir lives, and we continue to provide a variety of resources to help

Wellness, Health, and Safetywith this. In 2022, our focus included providing tools, programs andOur health and safety programs continue to evolve atresources to support the transition back to in-person work. We continue

Synopsys in response to global health threats, safety risks,

to keep health, safety, and emotional wellbeing at the forefront of how

and a changing regulatory environment. To protect thewe support our people.

health and wellness of our employees from workplace

Photo Credit: Priyanka Patil,
Synopsys Employee, India

CEO LETTERABOUT SYNOPSYS

ENVIRONMENT

Social Impact
Synopsys aims to create a Smart Future that’s
sustainable, just, and secure, both through

SOCIAL

GOVERNANCE

2022 ESG Report

APPENDICES

Social Impact Strategy and Management Approach
We generate positive community impact,a globally accessible online portal tosolve social challenges around the world,

manage volunteer projects, monetaryand create access to opportunity byand volunteer-time matching gifts, andmobilizing the resources of Synopsys, Inc.

employee giving campaigns.

2022 Social Impact
Highlights$4.7M
in charitable giving

technological innovation and through our work

and The Synopsys Foundation, as wellin society. Our Synopsys for Good social impact

as our employees’ contributions of time,

In 2022, our India operations updated theirprogram is our engine for driving societal

expertise, and charitable giving. By working

grant strategy, management structure,

to deliver meaningful change, we bring ourprocesses, and procedures to enhance

Smart Future strategy to the local level andimpact and visibility and better align with

$1.4M

execute upon our commitments acrosscorporate ESG policies.

in employee giving

impact, channeling Synopsys’ social conscience,
energy, and funding into tangible benefits.

three primary focus areas: education,

During more than two years of pandemic

community, and environment.

was made through The Synopsys

restrictions, Synopsys’ social impact andcommunity engagement efforts were largely
virtual, but now we’re coming back—together.

In 2022, $4.2 million in charitable giving

Our Synopsys for Good program isFoundation and Synopsys, India. In

managed by our social impact team andaddition, The Synopsys Foundation

executed in partnership with employee

donated approximately $500,000 throughCommunity Leads and Community

our 35th Anniversary matching gift

Involvement Teams around the world.

campaign, for a total of $4.7 million in

We take a regional management

charitable giving by Synopsys.

approach to philanthropy and employee
community engagement, and utilize

13,978volunteer hours
reported

56
sites engaged insocial impact efforts

47

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

2022 ESG Report

APPENDICES

Synopsys for Good Focus Areas

Delivering Positive Change

We approach planning and decision making through an equity

During the pandemic, our focus and that of manylens, centering the needs, perspectives, and lived experiences of

employees shifted to supporting COVID-19 relief

the diverse communities we aim to serve.

efforts globally. Going forward, we recognize the48

necessity of maintaining that kind of adaptability for
Education: We work to close equity and achievement gaps

community and employee engagement.

and prepare students for the future of work and innovation.
Focusing on K–12 (primary and secondary) education, we fundWe celebrated Synopsys’ 35th anniversary withengaging, hands-on experiences that build problem-solving,a matching gift campaign aimed at delivering

design-thinking, and digital skills, and programs that create

meaningful change to those most in need. Around

STEM curriculum and content oriented toward the future.

the world, we identified 35 charities and offered

52

Projects

our employees a 2:1 match, with the Synopsys
Community: We work in solidarity with community

Foundation contributing up to $1,000 per employee.

organizations to improve the quality of life for individuals andsociety. We fund organizations combating food insecurity

We also launched Season of Service, a three-and hunger, supporting inclusion and social justice, and using

week volunteer program offering a variety oftechnology to create and scale solutions that address social

volunteer projects around the world, aligned withchallenges. These efforts are focused in the communities

our Synopsys for Good focus areas. To provide

where we operate.

flexibility for employees and nonprofit partners, we

24

OfficeLocationsGlobally

offered projects virtually, on-site, outdoors, and at
Environment: We work to mitigate climate change andnonprofit locations.

its effects on people and the planet. We aim to support
nonprofits that help protect ecosystems, facilitate

These projects not only support the communities inthe transition to clean energy in rural and low-income

which we work and live, but they encourage team-communities, and create experiences that cultivate the next

building and help improve employee community

generation of environmental stewards.

engagement across the organization.

11

Countries
Photo Credit: Nicole Chmura,
Synopsys Employee, United States

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

Synopsys Outreach Foundation

2022 ESG Report

APPENDICES

49

In 2022:

Founded in July 1999, the Synopsys Outreach Foundation works to ignite interest,

The Synopsys Outreach Foundation was

The Opportunity Fund supported 20

nurture potential, and empower K–12 students in science, technology, engineering,

named Partner of the Year by RAFT,

organizations working to increase theand mathematics. Collaborating with Greater Bay Area education stakeholdersa Silicon Valley nonprofit providing

participation of marginalized students inand community partners, the Foundation aims to provide equitable and inclusive

educators with engaging, hands-on

project-based STEM

opportunities in project-based STEM.

learning resources

Synopsys Outreach Foundation program areas include:

A new STEM Shops program helped

The Summer Development Leadership

meet the back-to-school needs of overAcademy focused on building educators’

400 Bay Area teachers, providing STEM

STEM identity and inﬂuencematerials and resources and helping build
community
Building STEMClassrooms

Supporting and Fostering
STEM Experiences

Training STEM
Teachers

Activities for 2023 include:

Spring into STEM program providing

sciencepalooza! high school STEM

students with experiences and hands-on

pathways event offered in partnership

opportunities to build their STEM identitywith San Jose State University, withexpanded hands-on activities

Ten RAFT MakerMobile visits engaging
more than 1,000 studentsCEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

2022 ESG Report

APPENDICES

50

Philanthropic Partnerships

Education

Education

Building on 30+ years of community nonprofit

Empowered teachers and STEM professionals serving schools in underserved districts
to activate K–8 students’ curiosity about future science career pathways. Synopsys
volunteers prepared DIY Science Kits for students to be distributed by the Community
Resources for Science organization.

Supported the Innovation and Science Promotion
Foundation (ISPF) in sharing its STEM-oriented 12-hour
Raman Innovation and Scientific Enquiry (RISE) programwith 50 government schools, introducing processes andtools for scientific exploration and inquiry. Synopsys India’s
donation benefited 5,000 students at Raman Clubs acrossKarnataka.

partnerships, we keep equity and justice at thecenter of Synopsys for Good relationships acrossHelped improve the Amy Imai Elementary School by deep cleaning, organizing, andbeautifying multiple rooms and outdoor areas used by teachers and students, creating
a more welcoming environment.

all focus areas, from the projects we develop
and partners we engage to how we allocate
resources. We recognize and work to alleviate
historic and ongoing discrepancies in access to
SEASON OF SERVICE

Collaborated with two nonprofits for an employee volunteer project, assemblinghygiene kits and creating blankets for clients in need. The Homeless Prenatal Program
works to break the cycle of poverty, and the Izzi Early Education Program offers
comprehensive early care, education, and family services to those facing challenges.
Supported seniors with fixed incomes and limited capabilities through our association
with H.O.P.E., where our volunteers provided yard maintenance including raking
leaves, weeding, and cleaning gutters.

Environment
Aligned with our Environment focus, Synopsys Korea volunteers worked with the
Korea Volunteer Culture to upcycle PET plastic bottles into toys for underserved
children. When not upcycled, PET degrades into tiny microplastics that are frequently
consumed by marine life.
Provided environmental maintenance at Guandu Nature Park in Taipei, with Synopsys
employees and their families dredging ditches, removing invasive species, and weeding.
In addition, the Nature Center provided conservation education through a wetland
ecological tour, friendly farming education, and do-it-yourself projects.
Photo Credit: Bijay Chowdhury, Synopsys Employee, India

INDIA CSR GRANTS

Community

opportunity, treatment, and outcomes.

Partnered with the Foundation for Excellence India Trustto provide financial scholarships to 20 academically brightstudents from underprivileged backgrounds, helping themattain engineering degrees and reach their full potential.

Community
Supported children and youth with intellectual
developmental disabilities through the Jai Vakeel
Foundation and Research Centre. The project focusedon early intervention, functional academics, and prevocational training for 18 youths to expand their corecapabilities.

Collaborated with the GiftAbled Foundation to train
150 youths with disabilities in skill sets matched to
the needs of various sized company across businesssectors.

CEO LETTERABOUT SYNOPSYS

ENVIRONMENT

Innovation With Academics

SOCIAL

GOVERNANCE

Our efforts touch a spectrum of
academic stakeholders:

Achieving a Smart Future requires inspiration,
innovation, and collaboration. As part of our Chief
Innovation Office, we cultivate new partnerships with

Students: Empower and educate theindustry and academia to build relationships, surface

next generation of engineers to be

new ideas, create value, and drive business growth.

ready to tackle tomorrow’s challenges

Synopsys Academic & Research Alliances (SARA)

Educators: Provide learning

empowers universities through programs that

opportunities and training materials

further education and research including innovative

while lowering access barriers tocollaborations, strategic engagements, and access to

Synopsys technology for education

advanced technologies. Through these investments,

and research

we aim to nurture the interests and skills that will
propel the next generations of engineers into careers

Researchers: Address evolving

in research and industry.

challenges in the semiconductor
industry, uncover new solutions,and pave the path toward futuretechnologies
Entrepreneurs: Collaborate to discover
new technologies and turn fresh ideas
into market-ready products

APPENDICES

2022 ESG Report51CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

APPENDICES

2022 ESG Report

52

2023 Social Goals
Increase representation of women employees globally
Increase representation of BLI employees in the U.S.
Advance internal mobility opportunities to increase talentattraction, retention, and engagement
Increase grants to environment-focused nonprofits to help
mitigate climate change and its effects on people and theplanetExpand employee community engagement programsaligned with the hybrid work environment

Photo Credit: Mary Ann White, Synopsys Employee, United States

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

APPENDICES

2022 ESG Report

53

05
Governance2022 Governance Highlights
Corporate GovernanceBusiness Continuity and Resiliency
Cybersecurity and Privacy
Supply Chain
Political Activities and Contributions
2023 Governance Goals

Photo Credit: Daria Lango-Okroj, Synopsys Employee, Poland

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

Integrity has long been a hallmark of

2022 ESG Report

APPENDICES

54

UN SDG Alignment

our success. Synopsys’ management

Our commitment to a diverse andinclusive workplace begins with corporate
governance. From talent recruitment tonominations to our Board of Directors, we
carefully consider diversity of personal
and professional backgrounds, including
gender and ethnic diversity. We conduct
a comprehensive annual review to ensure
pay equity across similar roles by genderand ethnic background, with follow-up
from People and Workplace Resources incases of potential disparity.

and Board embrace sound corporate
governance principles and the highest
standards of business ethics. In a time ofenvironmental, geopolitical, and businessdisruption, we focus on ensuring
Synopsys’ preparedness and resiliency—
including our defenses against today’s

Our products connect our customers
to innovative technological solutions,
including mechanisms that safeguard
data privacy and build a more resilient,sustainable global infrastructure forall. We envision a future powered by
Synopsys technologies that enablereduced energy and carbon footprints forour customers.

complex cyberthreats.

We are committed to assessing,understanding, and mitigating ourpotential business continuity risks
stemming from climate change.

Through our Code of Ethics andBusiness Conduct, we seek to mitigate
discrimination and corruption acrossour value chain. Our efforts to develop
effective, accountable, and transparent
governance frameworks are part of ourongoing work to build a Smart Future thatis sustainable and just for all.
See our UN SDG Index to learn more about how Synopsys’
governance policies and practices support these SDGs.
Photo Credit: Kurma Chandra Shekar, Synopsys Employee, India

CEO LETTERABOUT SYNOPSYS

ENVIRONMENT

2022
Governance
Highlights

SOCIAL

GOVERNANCE

2022 ESG Report

APPENDICES

55

24

104

99%

Certified an additional 10
Business Risk and Continuity
Managers (BRCMs), bringing
our total to 24

Updated and completed testingon 104 business continuity
plans using scenario-based
eventsISO 22301

24/7

Received Conflict Minerals
Reporting Template (CMRT)
responses from approximately
92% of our hardware suppliers,
encompassing productsthat account for over 99% of
our total spend on hardware
products for the reporting year

Obtained ISO 22301
Business Continuity
Management Systems
certification

Launched new 24/7 Security
Operations Center (SOC) and
deployed security operations
automation to achieve moreproactive incident response

Photo Credit: Leo Lu, Synopsys Employee, Taiwan

CEO LETTERABOUT SYNOPSYS

ENVIRONMENT

Corporate
Governance

SOCIAL

GOVERNANCE

2022 ESG Report

APPENDICES

Policies and Statements
Synopsys Bylaws
Synopsys Corporate Governance Guidelines
Synopsys Board Committee Charters

Our Board of Directors oversees the management of
Synopsys’ business operations and ensures that theinterests of Synopsys’ stockholders are served. The Board
recognizes that to advance the interests of stockholders,the interests of other Synopsys stakeholders, including,among others, customers, employees, business partners
and local communities are important. The Board has
established a governance framework comprised of bylaws,
corporate governance guidelines, committee charters andother polices and practices, to exercise its duties to thebusiness and provide oversight of issues of key importanceto our stakeholders, including human capital management,
ESG, and cybersecurity. The Board executes its oversight
responsibility directly and through its committees, who
regularly report back to the Board. For information on
specific areas of risk oversight, as well as a complete
description of Synopsys corporate governance practices
generally, please refer to our most recent Proxy Statement
and Annual Report on Form 10-K or visit the Corporate
Governance and Ethics page of our website.

Synopsys Code of Ethics and Business Conduct
Synopsys Business Partner Code of Conduct
Synopsys Supplier Code of Conduct
Synopsys Conflict Minerals Policy
Synopsys Statement on UK Modern Slavery Act
Synopsys Affirmative Action Policy
Synopsys Political Activities Policy
Synopsys Privacy Policy
Synopsys Data Privacy and Protection Statement

56

CEO LETTERABOUT SYNOPSYS

Board Composition

ENVIRONMENTSOCIAL

GOVERNANCE

2022 ESG Report

APPENDICES

Board Snapshot

As of April 2023

The Corporate Governance and Nominating

Skills andExperience

Committee of the Board works to ensurethat the Board of Directors is comprised ofperspectives and exhibit a variety of skills,
professional experiences, and backgrounds,
in order to effectively represent the interests23

directors that bring diverse viewpoints andDiverseFemale6Maleof our stockholders. To achieve this, the7

GenderDiversity

NonDiverse

EthnicDiversity

9/9

8/9

7/9

Executive
Leadership

GlobalExpertise

Financial
Expert

4/9

6/9

6/9

Semiconductor
Industry
Experience

SoftwareIndustry
Experience

Sales &
Marketing

7/9

9/9

9/9

Strategy

PublicCompany
Board

Risk
Management

Governance Committee works with our
Board to determine the appropriate skills,
experience, qualifications, and attributes
that we seek in new board members in lightof our business environment and existing
Board composition.
Our current Board is comprised of nine
members. With the exception of our CEO,Dr. de Geus, all of our Board members are
independent. Over the last three years, threelonger tenured directors were replaced bythree new directors.

1

3

4

0-5 years

NonIndependent

>10
years
Tenure

57

2

6-10
years

Independence

8

Independent

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSOCIAL

GOVERNANCE

APPENDICES

Business Ethics

Anti-Corruption

The Synopsys Code of Ethics and Business Conduct

Synopsys maintains a zero-tolerance policy for bribery

guides the behaviors and actions of our global workforce

and corruption and works to comply with applicable anti-in accordance with our core values, high ethical standards,
and legal obligations. It addresses areas such as: equal
opportunity and non-discrimination, financial transparency,

corruption and anti-bribery laws in countries where we dobusiness. Our Code of Ethics and Business Conduct outlines
our anti-bribery and anti-corruption policies and procedures,and employees have access to an internal anti-corruption

bribery and corruption, conflicts of interest, insider

portal and the Synopsys Anti-Corruption Compliance Manual

trading, safeguarding company assets, fair competition,

for additional support.

environmental stewardship, and community investment.
Our Business Partner Code of Conduct and Supplier Code ofInternal Audit collaborates closely with our E&C team to assess
Synopsys’ operations for corruption risks. These assessments

Conduct communicate our high ethical and legal standards

include general evaluations of our anti-bribery and anti-

throughout our business ecosystem.

corruption compliance program’s design and implementation as
well as substantive testing to evaluate the program’s practical

Our Ethics & Compliance (E&C) program is led by our Chief
Ethics and Compliance Officer, who provides regular reports
to the full Board of Directors and the Audit Committee.

effectiveness. We also deploy culture surveys in targeted
locations to obtain input on what our employees are seeing andexperiencing, and to whom they are reporting concerns.

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Ethics and Integrity Training

Reporting Concerns

From our Board members to our management,

Synopsys encourages our people to report suspected

For more information regarding

employees, and contractors, everyone at Synopsys

violations of laws, rules, regulations, and company

reporting of violations, please view ouris required to read, understand, and abide by ourpolicies by other employees or any of our suppliers,

Code of Ethics and Business Conduct.

Code of Ethics and Business Conduct, affirming

vendors, resellers, or distributors. Our open-door policy

their commitment to act with integrity. Employees

means employees are free to raise these issues withcomplete this requirement at hiring and renew

any manager at any time, and our Code of Ethics andit through mandatory training on integrity topics

Business Conduct strictly prohibits retaliation against(including security awareness) during our annual

anyone who raises an issue in good faith.

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59

Integrity Awareness Month.
Employees can report suspected violations to our
Depending on their roles and geographic locations,

People and Workplace Resources, Legal, Internal Audit,

certain employees are assigned more in-depth ethics

or E&C functions. Employees, contractors, customers,

and compliance training on topics such as anti-

suppliers, and other business partners can also reportcorruption, import/export compliance, insider trading,anonymously to our third-party-managed Integrity

and antitrust.

Helpline web portal, our U.S. telephone helpline (1-888399-0402), or any of the non-U.S. helpline numbers listed
at the Helpline web portal. In 2022, to better enable ourspeak-up culture and increase awareness of reporting
mechanisms for E&C questions or concerns, weupgraded our Integrity Helpline with a new web intake
interface and case management system. Following
a report, our E&C team oversees an investigation
appropriate for the situation. Anonymous reports andthe results of investigations are communicated to the
Audit Committee.

Photo Credit: Mohammed Ghassan, Synopsys Employee, India

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60

Business Continuity and Resiliency
Preparedness and resiliency are essential tocapabilities around business continuity and resiliency

Synopsys’ continued ability to serve our employees,

via investments in people, technology, processes, andcustomers, and stockholders. In 2022, events

controls. In fiscal 2022, we:•Updated and fully tested 104 scenario-based

In late 2022, we obtained ISO 22301

business continuity plans using risk scenarios

certification (Business Continuity

Tested our ability to assemble Synopsys’ crisis

Management System), which will

Obtained ISO 22301 certification, the international

management teams using SynopsysALERT, ourand other geopolitical tensions confirmed ourstandard for Business Continuity Management

internal mass-notification system

help Synopsys safeguard business

operating resilience and ability to respond to shifting

Systems•

including the ongoing COVID-19 pandemic, trade
sanctions associated with the Russia-Ukraine conflict,••legal and trade compliance requirements.
•

Performed risk and vulnerability assessments that

Certified an additional 10 Business Risk andContinuity Managers (BRCMs), bringing our total to 24

operations from all disruptions,
including natural disasters, cyberattacks, infrastructure failure, and more.

To maintain Synopsys’ resilience, we refresh ouralign risk areas, risk-rating scoring, and risk frequency

business continuity plans on an annual basis,

with our identified climate change threats (wildfires,

These initiatives demonstrate our continuing

maturing and testing their ability to perform during

flooding, air pollution)commitment to enterprise resiliency. In 2023, we will

Learn more about our climate risk assessment work inincrease awareness and training through targeted

this report’s TCFD Index.

scenario-based events such as economic or
geopolitical crises, public health emergencies, andextreme climate events that threaten the safetyof our people, offices, operations, and assets. To
ensure continued alignment with evolving risks
and expectations, we continually strengthen our•Updated our business continuity plans to also

communications, and conducting ongoing exercises

include climate risks

with our crisis management teams.

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Cybersecurity and Privacy
Every day, the cyberthreat landscape gets more complex—and every day, we evolveto address that complexity. Whether protecting our own IP, maintaining the security
and privacy of our partners’ and employees’ data, or helping our customers design
protections into their systems and software, Synopsys delivers top talent andinnovation to every challenge, enabling a future that’s sustainable, just, and secure.

Cybersecurity and Privacy Strategy
and Management Approach
To manage today’s complex cyberthreat landscape,Cyber Security Framework (NIST CSF) and the

Synopsys monitors emerging risks, develops andISO/IEC 27001 Information Security Management

integrates best-of-breed technologies, and recruits

Framework. We also leverage the power of softwareand retains top cybersecurity talent. We align withtesting products and services from our Software

multiple industry-recognized frameworks including

Integrity Group (SIG) to structure, test, and assess thethe National Institute of Standards and Technology

rigor of our software security practices.

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The Synopsys 20
Key Security Controls

Our efforts are managed by our Chief Security Officer (CSO), whoMore than anything else, staying ahead of today’s

oversees a comprehensive, multidisciplinary program comprised

cybersecurity risks takes people. At Synopsys, we’veof information security, IT, product security, physical security,

doubled the size of our team over the past two years and

SIG, and Legal. Our CSO reports directly to our President andare continually recruiting to grow our expertise. Many of our

The Synopsys 20 Key Security

Chief Operating Officer (COO) and regularly updates our Board of

new hires blend cybersecurity expertise with development

Controls are safeguards that

Directors on our cybersecurity performance and risk profile. All

backgrounds, improving our cloud security readiness andhelp our Information Security

Synopsys cybersecurity policies and procedures are assessed

helping us take a DevSecOps (development, security, andteam prevent, detect, correct,

regularly by our internal auditors as well as third-party consultants.

operations) approach to integrating security across the IT

compensate for, and deterWe continue to track our implementation of the NIST framework

life cycle. The information security team also leverages thethreats and vulnerabilities related

through regular third-party NIST CSF maturity assessments thatcyber experts from our Software Integrity Group. We haveto the confidentiality, integrity,

provide the basis for establishment of performance goals for thealso grown our capacities in incident response, forensics,

and availability of our systems

coming period.

and investigations.

and data. We enforce the use
and adoption of the 20 key

We maintain cyber liability insurance that covers certain

controls on all technology related

liabilities in connection with security breaches or related

projects from their inception.

incidents. Since 2015, Synopsys has experienced no material

Infosec audits these controls

information security breaches.

in several parts of the business
annually to ensure compliance. In

We also address cybersecurity scenarios in our resiliency planning

addition, we require all Synopsys

and document them through business continuity plans. Our Incident

IT environments be compliant

Response Program facilitates integrated response to potential

with these controls to reducecybersecurity events. We conduct regular controlled penetration

technical, administrative, andtesting of various environments and annual cyber incident exercises

physical cybersecurity risks;

to ensure proper protections are in place for our data and that of our

prevent security incidents; andcustomers and partners.

mitigate potential impacts.

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2022 Cybersecurity
Highlights
The work of cybersecurity is

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Incident Response

Cybersecurity Training

Deployed new security operations automationto achieve more proactive incident responsewith our 24/7 Security Operations Center (SOC)

Updated our cybersecurity training, with mandatory training
for all employees in September followed by Cybersecurity
Awareness Month in OctoberZero-Trust Approach

Tabletop Exercises

In 2022, we completed phase 1 of zero-trustarchitecture to reduce risk in hybrid and workfrom-home environments

Conducted a ransomware executive tabletop exercise,
updated our business resiliency plans, and implemented a newdata backup strategy

M&A Processes

Certifications

Formalized new security processes for all
incoming mergers and acquisitions (M&As) andensured all previous M&As are aligned with these
new security standards

Achieved multiple certifications and attestations, including
ISO 27001 Certification for Secure Cluster (U.S., Germany) and SIG
products; SOC 2 Attestation for Synopsys Cloud and SIG products;
TISAX certification (U.S., Germany) for compliance with new ISO/SAE 21434 and UNR155 automotive cybersecurity standards; andISO 22301 certification for business continuity management

continuous, operating as a 24/7
defense against emerging risks.

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Designing Cyber-Resilience64

Customer Case Study: Blue Yonder
For the past 30 years, Blue Yonder has been the world’s leading supply

Helping our customers build trust in their software,

which brings Synopsys significant SaaS capabilities andchain provider, enabling more than 4,000 global customers with anincrease resiliency against cyberattacks, and design

market-segment-leading dynamic application security

unmatched end-to-end solutions portfolio that shortens their supply

protections into their systems and software is at thetesting (DAST) technologies

chains, increases speed of execution, and profitably delivers to theircustomers. Blue Yonder’s portfolio of 100-plus applications contains

core of Synopsys product design and innovation.
Expansion of the Synopsys Polaris Software

a mix of custom-built codebases and commercial and open-sourcecomprehensive set of application security testing

Integrity Platform®, our integrated, cloud-components. They needed a solution to ensure they could accurately(AST) tools to detect security, quality, and compliancebased application security testing solution, via

track and manage their open-source components and identify any

issues in proprietary code, open-source and third-

announcement of two new SaaS offerings: Polaris

security vulnerabilities.

party dependencies, application behavior, andfAST Static and fAST SCA

Our Software Integrity Group offers the most•

deployment configurations. In 2022, we were named
a leader in Gartner’s Magic QuadrantTM for Application

The solution was Synopsys’ Black Duck software composition analysis•

Security Testing (AST) for the sixth straight year.

Release of new Rapid Scan capabilities for Coverity(SCA), a comprehensive solution for managing security, license

SAST and Black Duck SCA

compliance, and code quality risks stemming from the use of opensource in applications and containers, across the software supply chain

We also received the highest scores across theLaunch of Synopsys Code SightTM Standard Edition,and throughout the application life cycle. Added in 2017 to Blue Yonder’sApplication Security Testing Report, which ranksa standalone version of our IDE plugin for developer-

2015 Black Duck Code Center implementation, Black Duck SCA enabled

vendors’ capabilities across five common use cases:

driven testingBlue Yonder to set and enforce open-source use and security policies,

board in the 2022 Gartner® Critical Capabilities for•automate policy enforcement with DevOps integrations, and prioritize andenterprise, continuous testing, mobile and client,
DevSecOps, and cloud-native applications.

Learn more about Synopsys’ portfolio of Software Integrity

track remediation activities.

Solutions.
With the Black Duck SCA, “We’re now able to ensure that none of ourIn the past year, Synopsys has made significant
investments in cybersecurity innovation, including:•In our Electronic Design Automation (EDA) business,

products are released with open-source license risks or security issues,”

we’re helping our customers build more secure chips andsaid John Vrankovich, Principal Architect at Blue Yonder.

Acquisition of WhiteHat Security, a leading provider

hardware, leveraging a broad portfolio of secure IP andof application security software-as-a-service (SaaS),

R&D investments to deliver on-chip security advancements.

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65

Cybersecurity Awareness Month:Everyone Can Be a Human Firewall

Our Data Privacy Commitment

Synopsys’ Security Awareness and Education

Synopsys recognizes that privacy is a fundamental human right. We

platforms to ensure we maintain proper controls related toprogram ensures that all employees understand their

are committed to strong privacy principles and transparency aboutcompliance with evolving data privacy regulations in Europe, the U.S.,

responsibilities for the appropriate handling and protection

the use of personal data. As a business-to-business company, ourAsia, and around the globe.

of Synopsys’ systems, data, and other computing

access to personal information is limited and we never sell such

resources. We provide educational opportunities topersonal information. Our Data Privacy and Protection Statement

In 2022, Synopsys began taking steps to comply with new privacy

support Synopsys employees in mastering proper security

enumerates our complete data privacy principles and is regularly

laws coming into effect in China and in five U.S. states: California,

techniques, and each October we amplify our outreachreviewed and updated for compliance with relevant laws andColorado, Connecticut, Utah, and Virginia. Synopsys has also taken

as part of Cybersecurity Awareness Month. In 2022, theregulations, and our Data Processing Addendum (DPA) Supplement

steps to assure the legality of its cross-border data transfers undercampaign’s theme, “See Yourself in Cyber,” focused on theenumerates the duties and obligations of our data controller andthe revised Standard Contractual Clauses issued by the European

people aspect of cybersecurity, with topics and materials

data processor partners. Our Chief Privacy Officer is responsible forCommission and the United Kingdom. We will continue to evolve our

focusing on recognizing the employee’s personal

reviewing policies, procedures, contracts, services, and technology

posture to stay in compliance with new developments in privacy law.

responsibility for:• Taking the necessary steps for ensuring the safety of
our systems, documents, code, and intellectual property• Helping govern our vital data assets• Helping build secure products that our customers willtrust as part of a secure supply chain• Caring about keeping Synopsys, its people, its
information, and its assets safe and secure

Photo Credit: Joseph Chen, Synopsys Employee, China

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Synopsys’ Smart Future strategy not only focuses internally to

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66

2022 Supply Chain Highlights
In 2022, we focused on analyzing and understanding our direct and indirect spend withselect suppliers around the world. These efforts set the stage for increased engagement

manage our operational impacts, but also engages externally withand due diligence of our suppliers while building greater ESG diligence into decision

supply chain partners on our expectations around environmental,

making around sourcing and indirect procurement. During the year, we:health and safety, human rights, governance, and labor standards.
Added renewable energy commitments to our data center vendor agreements,
addressing a significant source of Scope 2 electricity consumption

Supply Chain Strategy andManagement Approach

Developed ESG criteria for our indirect procurement Request for Proposal process
Completed an RBA facility-risk self-assessment questionnaire in preparation for an
RBA Validated Assessment Program (VAP) audit

Synopsys’ supply chain management strategy, policies, and initiatives
aim to optimize our procurement operations and influence supplier andpartner behaviors to ensure a resilient, reliable, and ethical supply chain.
Across our business ecosystem, we work to build greater awareness of
responsible environmental, labor, and human rights practices to mitigate
risk while advancing international norms and standards. Direct suppliersof inputs for our hardware products must comply with all applicable laws
and regulations and our Supplier Code of Conduct, which mirrors the
Responsible Business Alliance (RBA) Code of Conduct standards for labor,
governance, health and safety, and environmental and ethical practices.

Improved supplier categorization by spend reporting and began tracking
suppliers with science-based emissions reduction targets

Additionally, in May 2022 we made our annual conflict minerals filing with the Securities
and Exchange Commission (SEC) for the 2021 reporting year. We sought to survey allof our suppliers and identify high-priority suppliers that account for over 99% of our
total spend on hardware products for this reporting year. We received Conflict Minerals
Reporting Template (CMRT) responses from approximately 92% of our suppliers.

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Software Supply Chain Risk Management
In 2022, we experienced increasing demand for solutions related
to Software Supply Chain Risk Management (SSCRM), which
includes, among other things, provision and use of a softwarebill of materials (SBOM, a nested inventory of the components
in a piece of software) to help manage risks. SSCRM has been
the topic of executive and legislative activity in the U.S. andglobally, across governments and industry and among ourcustomers. To help shape this demand signal, Synopsys experts
have been intimately engaged in public-private collaborations to
influence government and industry thinking and action. Of note,
Synopsys received public acknowledgement of our contributions
to the SSCRM community from NIST in its publication of the
Secure Software Development Framework (SSDF) and from the
Department of Homeland Security and the White House for ourcontributions to the Cyber Safety Review Board’s report on Log4j.
In 2022, our Software Integrity Group (SIG) began aligning
our capabilities related to SSCRM, SSDF, and SBOM into acoordinated effort, developing a SIG SSCRM strategy anddefining a set of new solutions that address various aspects of
SSCRM for different customer groups and will evolve in parallelwith SSCRM requirements.

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Political Activities
and Contributions
Synopsys is committed to compliance with applicable laws, rules, andregulations including lobbying registration and disclosure laws, ethics
rules, provisions of the Foreign Corrupt Practices Act, and anti-bribery
laws worldwide. In 2022, Synopsys engaged in direct advocacy withgovernment officials on public policies, legislation, and regulations
relevant to the company. All lobbying was undertaken in accordancewith applicable law and relevant internal procedures and approvals,
as stipulated in Synopsys’ Political Activities Policy, and none of ouradvocacy required any Lobbying Disclosure Act (LDA) filings. In the U.S.
and abroad, we also engage with trade and industry associations that
may undertake advocacy on behalf of their members.
Synopsys does not contribute to political parties or candidates, nor do wecontribute to political action committees. We may contribute periodicallyto local ballot initiatives in California that are consistent with our qualityof-life goals. All such contributions are disclosed on our website.

Photo Credit: Bhaskara P, Synopsys Employee, India

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2022 ESG Report

692023 Governance Goals
Strengthen our controls and process around ESG
data management and disclosure
Continue to engage with stockholders to alignESG initiatives with stockholder feedback and best
governance practices
Launch a new executive-level Climate Action
Steering Committee
Develop a supply chain engagement plan toaddress Scope 3 GHG emissions
Adopt a formal Human Rights Policy

Photo Credit: Hepiben Bhatiya, Synopsys Employee, India

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70

06
Appendices
SASB Index
TCFD Index
GRI Content Index
UN SDG Index

Photo Credit: Kurma Chandra Shekar, Synopsys Employee, India

CEO LETTERABOUT SYNOPSYS

ENVIRONMENTSASB Index:
Software &IT Services
Synopsys has elected to report to the Sustainability
Accounting Standards Board (SASB): Software & IT
Services Standard. SASB connects business andinvestors on the financial impacts of sustainability.
Unless otherwise noted, all data and descriptions
apply to our entire company. We do not currently
disclose all metrics included in the Standard for our
sector, but we intend to continue to evaluate them inthe future. All data is for the fiscal year ending October
31, 2022, except for the environmental data, which isfor calendar year 2021.

SOCIAL

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2022 ESG Report71CEO LETTERABOUT SYNOPSYS

Topic

Environmental Footprint ofHardware Infrastructure

Data Privacy & Freedom ofExpression

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APPENDICES

Accounting Metric

TC-SI-130a.1(1) Total energy consumed, (2) percentage grid electricity,(3) percentage renewable

TC-SI-130a.2(1) Total water withdrawn, (2) total water consumed,
percentage of each in regions with High or ExtremelyHigh Baseline Water StressThousand cubic meters (m³), Percentage (%)

TC-SI-130a.3

Discussion of the integration of environmental
considerations into strategic planning for data center
needs

n/a

Environment: Boosting Data Center Sustainability

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TC-SI-220a.1

Description of policies and practices relating tobehavioral advertising and user privacy

n/aGovernance: Cybersecurity and Privacy
Synopsys Data Protection and Privacy Statement

Page 61

TC-SI-220a.2

Number of users whose information is used forsecondary purposesn/aSynopsys Data Protection and Privacy Statement: Synopsys does
not use personal information for secondary purposes and uses
information only for the reasons we give when we collect the data.

TC-SI-220a.3

Total amount of monetary losses as a result of legal
proceedings associated with user privacy

U.S. Dollars

In FY22, we had zero monetary losses as a result of legal
proceedings associated with user privacy that required disclosurein our public Securities and Exchange Commission (SEC) filings.

TC-SI-230a.1(1) Number of data breaches, (2) percentage involving
personally identifiable information (PII), (3) number ofusers affected

Number, Percentage (%), Number

Since 2015, Synopsys has experienced no material information
security breaches.

TC-SI-230a.2

Description of approach to identifying and addressing
data security risks, including use of third-party
cybersecurity standards

n/aData Security

Unit of Measure
Gigajoules (GJ), Percentage (%)

Response/Location

Page
NumberCode

Colocation Data Centers1) 244,823 GJ, 2) 100%, 3) 9%
We do not currently calculate total water withdrawals as it is notconsidered a priority topic for our business.

Governance: Cybersecurity and Privacy Strategy and Management
Approach

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Topic

Recruiting & Managing a
Global, Diverse and Skilled
WorkforceIntellectual Property
Protection & Competitive
Behavior

Managing Systemic Risks
from Technology Disruptions

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CodeAccounting Metric

Unit of Measure

Response/Location

TC-SI-330a.1

Percentage of employees that are (1) foreign nationals
and (2) located offshore

Percentage (%)

We had 19,008 employees as of 2022. Approximately 74% of these
employees are based outside of the U.S.

Page
NumberOur November 2022 engagement score was 80. Scores for “I would
recommend Synopsys as a great place to work” were strong at
82, and measures of employee satisfaction were above industry
average at 78.
TC-SI-330a.2

Employee engagement as a percentage

Percentage (%)
Engagement at Synopsys is calculated from the average responses
to the following question and statement: (1) How happy are you
working at Synopsys?, and (2) I would recommend Synopsys as agreat place to work.

TC-SI-330a.3

Percentage of gender and racial/ethnic grouprepresentation for (1) management, (2) technical staff,and (3) all other employees

TC-SI-520a.1

Total amount of monetary losses as a result of legal
proceedings associated with anticompetitive behavior
regulations

Percentage (%)

Social: Diversity Metrics Snapshot
Governance: Board Snapshot

U.S. Dollars

No legal actions were pending or completed during the reporting
period regarding anticompetitive behavior or violations of antitrust
or monopoly legislation.

TC-SI-550a.1

Number of (1) performance issues, (2) service
disruptions and (3) total customer downtime

Number, Days

Synopsys actively monitors the availability and performance of ourtechnology infrastructure. In 2022, Synopsys did not experience
any technology incident that caused a material disruption to ourbusiness or to our customers.

TC-SI-550a.2

Description of business continuity risks related todisruptions of operations

n/a

Governance: Business Continuity and Resiliency

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2022 ESG Report

TCFD Index
The table below addresses the recommendations of the Task Force on Climate-related Financial Disclosures.
Synopsys maintains that the climate risks outlined below do not have a material impact on its financial
performance and operational results.

Recommendations

Disclosure/Links to More Information

CDP Reference

Describe the board’s oversight of climate-related risks
and opportunities

The Board oversees risk management at Synopsys and executes its oversight responsibility directly and through its committees, who regularly report back to
the Board. The Corporate Governance and Nominating (CGN) Committee of the Synopsys Board of Directors has direct oversight of environment, social andgovernance (ESG) matters, the scope of which includes climate-related issues. As stated in its publicly available charter, the CGN Committee is responsible foroverseeing policies, practices, priority and risk assessments, risk management, initiatives, goals, progress toward goals and public disclosures relating to ESG
matters, except to the extent delegated to other committees of the Board. The CGN Committee receives updates from the ESG Leadership Committee, led by
Synopsys’ SVP and Deputy General Counsel. Each of Synopsys’ three standing Board comittees coordinate with other committees to oversee “ESG Matters,”
including reporting standards with respect to ESG Matters.

CDP Report (C1.1b)

Describe management’s role in assessing and managing
climate-related risks and opportunities

The Synopsys ESG Management Team is responsible for our ESG strategy and goals, which includes assessing, monitoring, and managing climate-relatedrisks and opportunities. The ESG Management Team is made up of senior leaders in the Legal and ESG team. The ESG Leadership Committee includes
executives from across our business who are tasked with driving Synopsys’ ESG performance and ensuring the implementation of our Smart Future strategy
in their respective areas of responsibility. Members of the ESG Leadership Committee participate in the climate-related risk and opportunity assessment ofbusiness activities and strategies. They also help inform the climate-related aspects of our ESG strategy and roadmap, including stakeholder engagement,
metrics and disclosures, and special projects.

CDP Report (C1.2,
C1.2a)

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Disclosure/Links to More Information

CDP Reference

In 2022, we completed a climate-related risk and opportunity assessment of the potential relevance and significance of the following climate-related risk andopportunity drivers applicable to our business over short (0—2 years), medium (2—5 years), and long (5+ years) time horizons.
Risk Category

Description

Timeframe

Acute Physical

Increasing frequency/severity of climate-driven events (e.g., floods, wildfires, heatwaves,
power interruptions) and potential disruption of operational and supply chain activities

Short–long term

Chronic PhysicalLong-term changes in mean temperatures, weather patterns, and sea levels; potential
implications for location of company activities and costs (e.g., increased cooling in data
centers)

Medium–long term

Carbon pricing escalating fossil fuel costs, thereby increasing operating expenses

Medium–long term

Proliferation of legislation mandating corporate GHG disclosure and/or reductions;potential for mandatory product energy efficiency standards that may increase productdevelopment costs

Short–long term

Potential implications for attracting and retaining talent, customers, and investment

Short–long term

Transitional – Policy

Describe the climate-related risks and opportunities theorganization has identified over the short, medium, andlong term

Transitional – Regulatory/Legal

Transitional – Reputational

Opportunity Category

Description

Timeframe

Resilience

Potential to increase resilience through incorporation of climate scenarios into businessresiliency planning

Short–long term

Products/Services/Market

Drivers for the low carbon economy transition to stimulate increased demand for Synopsys’ low power products

Medium–long term

Resource Efficiency

Opportunities to hedge against future increases in fossil fuel costs driven by carbon
pricing and other factors through investments in energy efficiency

Medium–long term

CDP Report (C2.1a, C2.3,
C2.3a, C2.4, C2.4a)75

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Disclosure/Links to More Information

2022 ESG Report

CDP Reference

We have not identified any physical or transitional climate risks as having a high risk or material impact on our business, strategy, or financial planning.
In the physical risk category, potential business disruption due to acute physical events impacting our hardware and digital supply chain operations is factored into
financial planning and our business continuity and disaster recovery programs, including related measures such as the maintenance of buffer stocks of parts andfinished goods.
Describe the impact of climate-related risks andopportunities on the organization’s business, strategy
and financial planning

As a technology company we have not identified significant impacts to our overall business, strategy, or financial planning related to transitional risks such as carbon
pricing, changing stakeholder expectations (reputation), and legislation. We are, however, committed to taking responsibility for our carbon footprint and we factor
costs associated with the delivery of our annual greenhouse gas accounting, carbon neutral commitment, and emissions reduction initiatives into our annual financial
planning.

CDP Report (C2.3a,
C2.4a, C3.1, C3.3, C3.4)

The opportunity identified as having a high impact on our business, strategy, and financial planning relates to the development of products for low power and solutions
for chip design that optimize performance per watt. Future applications from AI to smart devices depend on silicon chips running faster, scaling down to smaller
node sizes, integrating more capabilities, and processing more data―all while consuming less power. Synopsys has more than 25 years of low power design andverification technology leadership and has contributed extensive technical input to industry groups advancing standards on this topic. This broader opportunity is
strategically relevant to our research and development investments and financial planning.

We have considered the potential implications of a policy-driven carbon price for our direct operations (scope 1 and 2) and upstream (scope 3) activities under varioustransitional scenarios. The carbon price scenarios (2ºC orderly, 2ºC disorderly, 1.5ºC orderly and 1.5ºC disorderly) were drawn from the NGFS (Network for Greening
the Financial System) data.

Describe the resilience of the organization’s strategy,
taking into consideration different climate-related
scenarios, including a 2-degree Celsius or lower scenario

The potential impacts of the carbon price scenarios considered were not identified as being significant to our operating costs. Additionally, we are working to increase
our resiliency to future carbon pricing of fossil fuels by placing an internal cost on carbon through our carbon neutrality program, thereby improving the net present
value of internal efficiency and emissions reduction projects. We are also reducing our reliance on fossil fuel-based electricity, for example, through our participation in
one of the largest aggregated virtual renewable power purchase agreements to date, as described in the Environment chapter.
Our operating model means that we lease the majority of our office and data center space from third-party landlords and colocated data center vendors, with limitedterm leases and service agreements. This enables us to be flexible and responsive to the changing climate and means that our exposure to the financial and strategic
implications of climate change for property asset maintenance, repair and upgrade costs, and property valuation are minimal. Additionally, the implementation ofeffective work-from-anywhere strategies during the COVID-19 pandemic has increased our ability to be adaptable and resilient in the face of physical climate change.

CDP Report(C3.2, C3.2a, C3.2b)76CEO LETTERABOUT SYNOPSYS

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Recommendations

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CDP Reference

Risk Management

We identify and assess potential climate-related risks and opportunities regularly. Working with an expert consulting partner, we research and update potentiallyrelevant risks and opportunities and perform assessment of them using impact and likelihood criteria. As part of our climate risk and opportunity assessment update,
we convene a working group of risk and opportunity “owners”, which are typically functional leaders with responsibilities across our value chain, including corporate
functions, operations, supply chain (upstream), and products (downstream). Using the framework outlined below the assessment considers:

Describe the organization’s processes for identifying andassessing climate-related risks

Inherent Risk/Opportunity Rating:• Likelihood—the frequency and/or probability of events/impacts arising in the next 5 years (short/medium term) or 10 years (long term)• Impact—implications for revenue, operating costs, business continuity, safety, reputation, compliance
Residual Risk/Opportunity Rating (adjustment of inherent rating taking into consideration):• Preparedness – how prepared (i.e., on track, plans in process, needs improvement) management is to effectively mitigate the risk or realize the opportunity, taking
into consideration both active and developing plans
High-rated residual risks and opportunities are those we focus on by using additional investments to mitigate, accept, or transfer the risks, or to realize opportunities.
For medium-rated risks and opportunities, we maintain or enhance current programs and plans, and monitor for changes in risk profile. For low-rated risks andopportunities, we maintain existing programs and periodically re-evaluate the risk/opportunity rating.

CDP Report(C2.1, C2.2, C2.2a)77CEO LETTERABOUT SYNOPSYS

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2022 ESG Report

CDP Reference

Based on the individual risks, we consider strategies to mitigate, accept, or transfer physical climate-related risks. Strategies include:

Describe the organization’s processes for managing
climate-related risks

Describe how processes for identifying, assessing, andmanaging climate-related risks are integrated into theorganization’s overall risk management• Mitigation measures to reduce the impact of physical climate change include:- Our business continuity and disaster recovery program helps us maintain readiness for extreme events.
- From an IT Operations standpoint, we have a high degree of data center redundancy for our revenue services and continue migrating from on-premise locations
to a more resilient colocation strategy.
- We maintain buffer inventories of parts and finished goods within our hardware product supply chain.
- We also provide financial support to organizations working on climate adaptation measures in the San Francisco Bay Area, where we are headquartered, andhave the greatest concentration of employees.
CDP Report (C2.1, C2.2)• Mitigation measures to reduce transitional risks associated with our energy use and GHG emissions footprint include:- Pursuing Scope 1 and 2 emissions reduction targets to reduce impact of increased cost of carbon. This includes carbon neutral certification, which serves toplace an internal cost on carbon, supporting the financial case for other reduction measures and investment in renewable energy.
- We have submitted science-based Scope 1 and 2, and Scope 3 targets to SBTi for their review and validation.
- Investing in renewable energy, including a long term VPPA, which helped finance the development and construction of Azure Sky hybrid Wind Project. Under
the 12-year agreement, we have contracted 15 megawatts of wind generation capacity, which represents approximately 50% of our North American electricity
demand.
- Energy efficiency projects including LEED-certified office space.
- We ask new vendors to disclose their GHG emissions as a step towards decarbonizing and mitigating climate risks in our supply chain.

The results of our climate-related risk and opportunity assessment, led by the ESG Management Team with cross-functional engagement, are considered in Synopsys’company-wide risk prioritization process, which includes climate change, and is reported to the Board.

CDP Report (C2.1, C2.2)

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Metrics and Targets

Disclose the metrics used by the organization to assessclimate-related risks and opportunities in line with its
strategy and risk management process

Metrics we use to help us understand our exposure to climate-related risks and opportunities include:• Progress towards low power software products and solutions that can deliver an additional 25% power reduction for systems-on-a-chip over existing solutions usedby our customers• Scope 1, 2, and 3 GHG emissions and progress toward our emissions reduction target• Annual costs to realize our carbon-neutral commitment• Volume of customer and investor requests for information about our corporate climate strategies and performance, and evolving stakeholder expectations in thisarea
• ESG ratings and rankings that include climate risk management indicators
We have also added language to our data center provider agreements detailing our commitment to renewable energy, and will track the financial performance of our
VPPA “contract for differences” over time, which will inform our future renewables investment strategies.
Our Scope 1, Scope 2, and Scope 3 emissions are reported in the Environment chapter: GHG Emissions Summary Table and in our 2022 CDP Climate Change
response.

Disclose Scope 1, Scope 2, and if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the related risks

Risks related to our emissions footprint include the potential for policy-driven carbon price increases, resulting in higher expectations from stakeholders (e.g.,
regulators, employees, customers, and investors) for climate disclosures and impact reduction. We have assessed these risks as having a low residual risk ratingbased on the programs we have in place to manage the risks and reduce our footprint over time.

CDP Report(C6.1, C6.3, C6.5)

Synopsys is committed to being a part of the transition to a lower-carbon economy. We have a science-based emissions reduction target to reduce our Scope 1 and 2
emissions 25% by 2024 compared with a 2018 baseline. We have also committed to SBTi and have submitted Scope 1 and 2, and Scope 3 targets for their review andvalidation. Progress towards our 2024 Scope 1 and 2 target is reported in the Expanding GHG Emissions Commitments section of our report.
Describe the targets used by the organization to manage
climate-related risks and opportunities and performanceagainst targets

Synopsys has an ongoing initiative to reduce our global data center footprint through a strategy of optimization, consolidation, and decarbonization. Based on ourcurrent plans, by 2024 our optimization initiative will have transitioned 1.58 MW of data processing capacity to assets and colocation providers that are both moreenergy-efficient and located in regions with less carbon-intensive grids.
As part of our low power platform, we target delivering an additional 25% power reduction for system-on-a-chip over existing solutions used by our customers.
Examples of products that are contributing towards this target are provided in the Innovation for a Greener World section of our report.

CDP Report (C4.1, C4.1a,
C4.2)

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GRI Content Index
Synopsys reports with reference to the 2021 Global Reporting Initiative’s Sustainability ReportingStandards. This table covers the GRI disclosures found in our 2022 ESG Report, SEC filings, andcompany website.

GRI Standard Title
and Section

Disclosure

Description

Location and Notes

Page
NumberGRI 2: General Disclosures 2021
1. The organization and its reporting practices

2-1

2-2

2-3

Organizational details

Synopsys, Inc. (NASDAQ: SNPS) is incorporated in Delaware, in the United States. Effective June 1,
2023, our headquarters address is 675 Almanor Avenue, Sunnyvale, CA 94085. For the locations of ouroperations, see Countries/Regions. For further information, see Synopsys’ Annual Report on Form 10-K
for fiscal year ended October 31, 2022.

Entities included in the organization’s sustainability reporting

Regions where Synopsys operates and that are relevant to the topics covered in this report are: theAmericas, Europe and the Middle East, Asia Pacific, and Japan. Find more information on our locations
here. Operations data in this report also includes majority-owned subsidiaries.

Reporting period, frequency and contact point

About This Report
The Synopsys 2022 Environmental, Social and Governance (ESG) Report covers our performancefor our fiscal year 2022, which began on November 1, 2021, and ended on October 31, 2022. The
exceptions include our environment performance data (calendar year 2021) and social impact
performance data (calendar year 2022), and as otherwise noted.

Page 2

We report annually. Read our most recent report here: 2021 CSR Report.
esg@synopsys.com
2-4

Restatements of information

Emissions data has been updated from prior publications to reflect improved measurement methods
and enhanced data quality.

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Description

Location and Notes

Page
NumberExternal assurance

We received external assurance on the following ESG data:- Calendar year 2021 GHG Emissions Scope 1 and 2, Scope 3 Business Traveland Upstream Transportation- Fiscal Year 2022 Diversity Metrics
See Synopsys’ External Assurance Statements.

Page 26

2-6

Activities, value chain, and other business relationships

About Synopsys: Our Values
Governance: Supply Chain
Synopsys made no significant changes to the organization’s size, structure, or supply chain in 2022.
For additional information, see Synopsys’ Annual Report on Form 10-K for the fiscal year ended October
31, 2022.

Page 10and 66

2-7

Employees

Social: Diversity Metrics Snapshot
We don’t currently report on employee breakdown by region, or by full-time and part-time employment
status.

Page 392-8

Workers who are not employees

Governance: Supply Chain

Page 66

2-9

Governance structure and composition

Governance: Corporate Governance
For a comprehensive description of Synopsys’ corporate governance practices, please refer to our mostrecent Proxy Statement and Annual Report on Form 10-K or visit our Corporate Governance and Ethics
website.

Page 562-10

Nomination and selection of the highest governance body

To learn more about Synopsys’ process for nomination and selection of members of our highest governance body, see our most recent Proxy Statement.

2-11

Chair of the highest governance body

To learn more about the composition of Synopsys’ highest governance body and its committees, visit
our Corporate Governance and Ethics website.

2-5

2. Activities and workers

3. Governance81CEO LETTERABOUT SYNOPSYSGRI Standard Title
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2022 ESG Report

Description

Location and Notes

Role of the highest governance body in overseeing the management of impacts

About Synopsys: How We Manage ESG
Synopsys’ Corporate Governance and Nominating (CGN) Committee of the Board of Directors has responsibility for oversight of environmental, social, and governance (ESG) matters, including risk assessment and management related to ESG.

Page
NumberPage 13

See our Corporate Governance and Nominating Committee Charter and 2022 CDP Climate Change
Response.

2-13

Delegation of responsibility for managing impacts

About Synopsys: How We Manage ESG
Synopsys’ CGN Committee of the Board of Directors has responsibility for oversight of ESG matters,
including risk assessment and management related to ESG. The CGN Committee delegates responsibility for managing ESG-related impacts to our ESG Management Team with the support of the ESG
Leadership Committee. The ESG Management Team is made up of senior leaders in the Legal ESG
team. The ESG Leadership Committee is comprised of Vice President and Director level leaders representing Workplace Resources, Finance, Information Technology, the People Team, Investor Relations,Operations, Marketing, Hardware Operations, Social Impact, and Legal. It is responsible for driving ESG
performance for Synopsys and in their respective areas of responsibility. Additionally, a management-level cross-functional Emissions Reduction Task Force drives climate-related initiatives.

Page 13

See our Corporate Governance and Nominating Committee Charter and 2022 CDP Climate Change
Response.

2-14

Role of the highest governance body in sustainability reporting

About Synopsys: How We Manage ESG
Synopsys’ CGN Committee of the Board of Directors has responsibility for oversight of ESG matters,
including sustainability reporting.

Page 13

See our Corporate Governance and Nominating Committee Charter and 2022 CDP Climate Change
Response.
2-15

Conflicts of interest

Governance: Business Ethics
To learn more about Synopsys’ practices to avoid conflicts of interest, see our Code of Ethics and Business Conduct.

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Page
NumberDescription

Location and Notes

2-16

Communication of critical concerns

To learn more about Synopsys’ practices to encourage communication of critical concerns, see ourCode of Ethics and Business Conduct, pages 7-9.

2-17

Collective knowledge of the highest governance body

To learn more about Synopsys’ highest governance body members and previous experience and expertise, see our most recent Proxy Statement.

2-18

Evaluation of the performance of the highest governance body

To learn more about the performance evaluation of Synopsys’ highest governance body, see our mostrecent Proxy Statement.

2-19

Remuneration policies

To learn more about Synopsys’ remuneration policies, see our most recent Proxy Statement.

2-20

Process to determine remuneration

To learn more about Synopsys’ remuneration processes, see our most recent Proxy Statement.

2-21

Annual total compensation ratio

To learn more about Synopsys’ annual total compensation ratio, see our most recent Proxy Statement.

Statement on sustainable development strategy

CEO Letter

Page 42-23

Policy commitments

About Synopsys: Our Values
Governance: Business Ethics
Our precautionary approach is reflected in our Smart Future ESG strategy and approach, and our Enterprise Risk Management framework. The Synopsys Code of Ethics and Business Conduct is a roadmap
that guides the behaviors and actions of our workforce across the globe in accordance with our corevalues, high ethical standards, and legal obligations. For a complete description of Synopsys’ corporate
governance practices, please refer to our Annual Report on Form 10-K or visit our Corporate Governance and Ethics website.

Page 10and 582-26

Mechanisms for seeking advice and raising concerns

Governance: Business Ethics

Page 58

2-27

Compliance with laws and regulations

No significant fines or non-monetary sanctions for non-compliance occurred during this reporting
period. We consider significant fines to be those that are required to be disclosed in the company’s
Securities and Exchange Commission (SEC) filings.

2-28

Membership associations

Synopsys is a member of the following associations related to ESG:
• Responsible Business Alliance (RBA)• Clean Energy Buyers Association (CEBA)

4. Strategy, policies and practices
2-22

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Description

Location and Notes

Page
NumberApproach to stakeholder engagement

About Synopsys: Engaging Key Stakeholders
Social: Driving Employee Connection and Engagement
Governance: Supply Chain Strategy and Management Approach

Pages 14,44, and 66

Process to determine material topics

About Synopsys: How We Manage ESG
We determined the focus of this report by reviewing our most recent ESG priority assessment outcomes and through ongoing engagement with our ESG Leadership Committee, our employees, and key
external stakeholders such as our customers and investors.

Page 13

List of material topics

Our priority topics include:• Human Capital Management (Talent Management, Employee Engagement, Inclusion and Diversity,
Health and Wellness)• Innovation• Cybersecurity and Data Privacy• Product Security• Market Access• Crisis Management and Business Continuity• Climate Change and GHG Emissions• Corporate Governance• Ethics• Supply Chain• Public Policy• Social Impact
There were no significant changes to the list of material topics compared to the previous reporting
period. We will revisit the list through our priority topic refresh exercise, to be finalized in 2023.

5. Stakeholder engagement
2-29
GRI 3: Material Topics 2021
2. Disclosures on material topics

3-1

3-2

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Description

Location and Notes

Page
NumberManagement of material topics

Governance: Corporate Governance

Page 56

Operations assessed for risks related to corruption

Internal Audit collaborates closely with our Ethics and Compliance team to assess Synopsys’ operations for corruption risks. These assessments include general evaluations of our anti-bribery and anti-corruption compliance program’s design and implementation as well as substantive testing to evaluate the program’s practical effectiveness. We also deploy culture surveys in targeted locations to obtain
employee input on what they are seeing and experiencing, and to whom they are reporting concerns.

Communication and training about anti-corruption policies and procedures

Governance: Business Ethics
From our Board members to our management, employees, and contractors, everyone at Synopsys isrequired to read, understand, and abide by our Code of Ethics and Business Conduct, affirming theircommitment to act with integrity. Employees complete this requirement at hiring and renew it throughmandatory training on integrity topics (including a Security Awareness module) during our annual Integrity Awareness Month.

Page 58

Page 56

GRI 205: Anti-corruption 2016
3-3

205-1

205-2

GRI 206: Anti-competitive Behavior 2016
3-3

Management of material topics

Governance: Corporate Governance

206-1

Legal actions for anti-competitive behavior, antitrust, and monopoly practices

No legal actions were pending or completed during the reporting period regarding anti-competitive
behavior or violations of antitrust or monopoly legislation.

3-3Management of material topics

Environment: Environment Strategy and Management Approach

302-1

Energy consumption within the organization (GJ)

Fuel: 48,903 GJ
Electricity: 398,236 GJ
Total Energy: 447,140 GJ

Energy consumption outside of the organization (GJ)

158,124 GJ
The following Scope 3 sources have been included: car travel, employee commute, and product transport.

GRI 302: Energy 2016

302-2

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Description

Location and Notes

Page
Number

302-4

Reduction of energy consumption (GJ)

Environment
Approximately 6,130 GJ (fuel and electricity)

Page 16

3-3

Management of material topics

Environment: Environment Strategy and Management Approach

Page 24305-1

Direct (Scope 1) GHG emissions

Environment: GHG Emissions Summary Table
4,104 MTCO2ePage 26

Energy indirect (Scope 2) GHG emissions

Environment: Expanding Greenhouse Gas Emissions Commitments
Environment: GHG Emissions Summary Table
Environment: Boosting Data Center Sustainability
Location-based: 34,592 MTCO2e
Market-based: 30,218 MTCO2ePages 25,
26, and 28

305-3

Other indirect (Scope 3) GHG emissions

Environment: Expanding Greenhouse Gas Emissions Commitments
Environment: GHG Emissions Summary Table
Environment: Boosting Data Center Sustainability
22,723 MTCO2e
Scope 3 emissions categories included: Fuel- and Energy-Related Activities, Product Transport, Waste,
Business Travel, Employee Commute, and End of Life Treatment of Sold Products.

Pages 25,
26, and 28

305-5

Reduction of GHG emissions (MTCO2e)

In 2021, approximately 1,287 MTCO2e of GHG emissions were reduced as a direct result of reduction
initiatives of Scope 1 and 2 emissions.

GRI 305: Emissions 2016305-2

308: Supplier Environmental Assessment 2016
3-3

308-1

Management of material topics

Governance: Supply Chain Strategy and Management Approach

New suppliers that were screened using environmental criteria

All new suppliers are required to complete and return the New Vendor Questionnaire (NVQ), which
addresses topics including GHG emissions, conflict minerals, sourcing from diverse or minority-owned
businesses, cybersecurity, and data privacy practices. In 2022, approximately 1,280 vendors completed
the NVQ questionnaire.

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2022 ESG Report

Description

Location and Notes

Page
NumberManagement of material topics

Social: People Strategy and Management Approach

Page 36401-1

New employee hires and employee turnoverIn fiscal 2022, we increased our employee headcount by approximately 16%.
As of our fiscal year-end, our undesired turnover rate was 6.9%. We calculate undesired turnover rate bydividing the number of undesired exits from Synopsys by the average headcount for fiscal 2022, and we
define undesired turnover as exits by high-performing employees who resigned from Synopsys (or its
subsidiaries) to pursue other work opportunities.

Page 35

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

Social: Wellbeing and Total Rewards
See our Benefits website for additional information related to employee benefits.

Page 45

Management of material topics

Social: People Strategy and Management Approach

Page 36403-1

Occupational health and safety management system

Synopsys has implemented an Occupational Health & Safety Management System that enables safeand healthy workplaces globally. We are committed to the health and safety of Synopsys employees,
contractors, and visitors through the establishment of policies and standards that emphasize proactive
recognition and control of hazards, emergency response procedures, comprehensive safety training,and global health and safety regulatory compliance.

403-6

Promotion of worker healthSocial: Wellbeing and Total Rewards

Page 45

3-3Management of material topics

Social: People Strategy and Management Approach

Page 36

404-1

Average hours of training per year per Employee

In 2022, we refined Degreed, our Online Digital Learning Platform, and redesigned our SharePoint sites
for learning, technical training, and manager resources. Additionally, we implemented an analysis toolthat provides more robust data and reporting, which we will apply to 2023 reporting.

404-2

Programs for upgrading employee skills and transition assistance programs

Social: Investing in Our People

Page 41404-3

Percentage of employees receiving regular performance and career development
reviews

Social: Our People
Approximately 98% of employees completed a performance review during the reporting period.

Page 36

GRI 401: Employment 2016
3-3

GRI 403: Occupational Health & Safety 2018
3-3

GRI 404: Training & Education 201687

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Description

APPENDICES

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Location and Notes

Page
NumberGRI 405: Diversity & Equal Opportunity 2016
3-3

Management of material topics

Social: People Strategy and Management Approach

Page 36405-1

Diversity of governance bodies and employees

Social: Diversity Metrics Snapshot
Governance: Board Snapshot

Pages 39
and 57

Ratio of basic salary and remuneration of women to men

Social: Taking Action on Pay Equity
In 2022, women at Synopsys earned an average of $0.99 for every $1 men earned in the same positionand location, and U.S. Black, Latinx and Indigenous employees earned an average of $0.99 for every $1
earned by white employees.
Governance: Board Snapshot

Page 41
and 57

Management of material topics

Governance: Supply Chain Strategy and Management Approach

Page 66

414-1

New suppliers that were screened using social criteria

All new suppliers are required to complete and return the New Vendor Questionnaire (NVQ), which
addresses topics including GHG emissions, conflict minerals, sourcing from diverse or minority-owned
businesses, cybersecurity and data privacy practices, and more. In addition, 270 suppliers were assessed through our 2021 Conflict Minerals Due Diligence process. Responses were received from approximately 92% of suppliers.

415-1

Political contributions

See Synopsys’ Political Activities Policy.

Management of material topics

Governance: Cybersecurity and Privacy Strategy and Management Approach

Substantiated complaints concerning
breaches of customer privacy andlosses of customer data

Since 2015, Synopsys has experienced no material information security breaches. Data breaches that
may result in a material adverse effect on Synopsys’ financial position or the business would be disclosed in our public filings with the SEC.

405-2

GRI 414: Supplier Social Assessments 2016

GRI 415: Public Policy 2016

GRI 418: Customer Privacy 2016

418-1

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ENVIRONMENTUN SDG Index

SOCIAL

GOVERNANCE

2022 ESG Report

APPENDICESThe United Nations adopted 17 Sustainable Development Goals (SDGs) in 2015 as part of its 2030 Agenda for Sustainable Development.
These SDGs are a universal call to action to end poverty, protect the planet, and improve the lives and prospects of everyone around theglobe. We support this call to action and see close alignment of many of our activities, as noted in the table below.

SDG

Target4.3: By 2030, ensure equal access for all
women and men to affordable and quality

4.3: By 2030, ensure equal access for all women and men to affordable
and quality technical, vocational and tertiary education, including university

including university#4 Quality Education: Ensure inclusive andequitable quality education and promote lifelong
learning opportunities for all

4.4: By 2030, substantially increase the number of youth and adults who haverelevant skills, including technical and vocational skills, for employment, decent
jobs and entrepreneurship

Synopsys Actions and Initiatives in 2022
• The Synopsys University Software Program is dedicated to furthering university research and education in
the field of electronic design.
• Invested in the GEM Fellowship Program by providing full graduate university tuition and paid summer
internships for underrepresented groups (African Americans, American Indians, and Hispanic Americans)pursuing MS- and PhD-level engineering and science degrees• Provided universities with access to comprehensive curricula for Bachelor and Master Programs in IC design
and EDA development• Partnered with Foundation For Excellence India Trust to sponsor the education of academically gifted andfinancially deserving students in India pursuing degrees in engineering and technology
Through the following programs, Synopsys leverages our industry influence to contribute to higher numbersof youth and adults with the technical skills and employment opportunities in our industry:• Remained committed to interns. 2022 saw 1,230 students at various stages of their academic careers
participate in Synopsys’ global FUTUREx internship program (formerly InternX)• Partnered with GiftAbled Foundation in India to enable youth with disabilities to be ready for employment inpublic and private companies• Partnered with Fundación para la Inclusión Tecnológica Kodea to support IdeoDigital, a national project inChile that seeks to incorporate Computer Science in the classroom• Invested in NAACP ACT-SO (Afro-Academic, Cultural, Technological and Scientific Olympics) year longenrichment program that provides a forum for youth of African descent to demonstrate academic, artistic,
and scientific prowess in STEM, Business and Humanities• Supported the Synopsys Outreach Foundation to provide equitable and inclusive opportunities in projectbased STEM in the Greater Bay Area

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SDG#5 Gender Equality:
Achieve gender equality
and empower all women and girls

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APPENDICES

TargetSynopsys Actions and Initiatives in 2022

5.1: End all forms of discrimination against all women and girls everywhere

Synopsys works to reduce corruption and bribery in all forms and to enforce non-discriminatory laws andpolicies in many ways, including the following:• Synopsys Code of Ethics and Business Conduct, which mirrors the RBA Code of Conduct• Robust compliance program, led by our Chief Ethics & Compliance Officer, with Board oversight• Internal audits and external program assessments• Anti-Corruption policy, internal audits• Code of Ethics and Business Conduct• Integrity Helpline

5.4: Recognize and value unpaid care and domestic work through theprovision of public services, infrastructure and social protection policies andthe promotion of shared responsibility within the household and the family as
nationally appropriate

Synopsys recognizes the value of unpaid care and domestic work through the following programs:• Provide Dependent Day Care Flexible Spending Accounts (FSAs)• Offer variety of leave options to help employees deal with whatever circumstances may arise• Offer variety of programs to help employees with caregiver resources, including childcare and eldercare

5.5: Ensure women’s full and effective participation and equal opportunities forleadership at all levels of decision-making in political, economic and public life

Through the following programs, Synopsys works to ensure inclusive participation and leadership
opportunities for women:• Annually conduct and report on gender pay equity; in 2022, women at Synopsys earned an average of $0.99
for every $1 men earned in the same position and location• Partnered with Technovation to equip young women (ages 8-18) to become tech entrepreneurs and leaders
by using cutting edge technology to solve problems in their communities• Invested in Keshava Kripa Samvardhana Samiti in India to provide financial scholarships for underprivileged girls• See Diversity Metrics Snapshot for diversity at management levels and Board Snapshot at the Board level90CEO LETTERABOUT SYNOPSYSSDG

ENVIRONMENTSOCIAL

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TargetSynopsys Actions and Initiatives in 2022

7.2: By 2030, increase substantially the share of renewable energy in the global
energy mix• Accelerated development of renewable energy through participation in a large aggregated virtual powerpurchase agreement (VPPA) in the U.S.
• Signed a power purchase agreement (PPA) for up to 400,000 kilowatt hours (kWhs) of wind capacity permonth in Bangalore, India

7.3: By 2030, double the global rate of improvement in energy efficiency• Occupied 1.3 million square feet of LEED-certified office space across North America, India, and Asia
• Implemented a new digital platform for tracking utility bill and meter data across North America facilities toimprove monitoring of energy use• Procured a Data Center Infrastructure Management Tool (DCIM) to increase efficiencies in power usage andcooling

8.5: By 2030, achieve full and productive employment and decent work for all
women and men, including for young people and persons with disabilities, andequal pay for work of equal value

Through the following programs, Synopsys works to ensure inclusive and productive work for our people:• Annually conduct and report on pay equity based on gender (global) and Black, Latinx, Indigenous (BLI)
employees (U.S.); in 2022, BLI employees earned an average of $0.99 for every $1 earned by white employees• Incorporated Act for Impact performance measurements into our annual Performance Review process,involving every Synopsys employee in shaping and advancing our Inclusion & Diversity culture• Led five Employee Resource Groups (ERGs) for employees and allies including: WIN (Women’s Impact
Network), VIBE (Very Inclusive Black Employee), La Comunidad (Latinx), PRIDE (LGBTQIA+) and our new ERG,
NEX-GEN, to promote a diverse and inclusive workplace aligned with our values and goals• Offered employees with federal student loans an extra $400 per month (up to a lifetime $24,000 cap) to help
clear their loan obligations• Provided medical insurance to participants in our FUTUREx (formerly InternX) intern program#7 Affordable and Clean Energy: Ensure accessto affordable, reliable, sustainable and modern
energy for all#8 Decent Work and Economic Growth: Promotesustained, inclusive and sustainable economic
growth, full and productive employment anddecent work for all

2022 ESG Report

APPENDICES

91

CEO LETTERABOUT SYNOPSYS

SDG#9 Industry, Innovation and Infrastructure:
Build resilient infrastructure, promote inclusive
and sustainable industrialization and foster
innovation

ENVIRONMENTSOCIAL

GOVERNANCE

Target

9.4: By 2030, upgrade infrastructure and retrofit industries to make themsustainable, with increased resource-use efficiency and greater adoption ofclean and environmentally sound technologies and industrial processes, withall countries taking action in accordance with their respective capabilities.

13.1: Strengthen resilience and adaptive capacity to climate-related hazards
and natural disasters in all countries.
#13 Climate Action: Take urgent action tocombat climate change and its impacts

16.5: Substantially reduce corruption and bribery in all their forms.
#16 Peace, Justice and Strong Institutions:
Promote peaceful and inclusive societies forsustainable development, provide access tojustice for all and build effective, accountable
and inclusive institutions at all levels

2022 ESG Report

APPENDICES

16b: Promote and enforce nondiscriminatory laws and policies for sustainable
development.

Synopsys Actions and Initiatives in 2022

• Provided customers with innovative mobile and IoT solutions that are less energy and carbon intensive forbusiness verticals including AI, automotive, low power computing, etc.
• Continued plans for phased closure of inefficient on premise data centers, representing 18% of our current
capacity• Occupied 1.3 million square feet of LEED-certified office space across North America, India, and Asia
• Procured a Data Center Infrastructure Management Tool (DCIM) to increase efficiencies in power usage and cooling• Established new GHG emissions reduction targets and submitted these for SBTi review and validation• Initiated renewable energy sourcing for our North America offices and data centers for 40,000 megawatt
hours (MWhs) per year
• Updated our climate risk and opportunity assessment, which we first completed in 2021
• Updated our business continuity plans to also include climate risks• Obtained ISO 22301 Business Continuity Management Systems certification• Launched new 24/7 Security Operations Center (SOC) and deployed security operations automation toachieve more proactive incident response• Updated and completed testing on 104 business continuity plans using scenario-based events

Synopsys works to reduce corruption and bribery in all forms and to enforce non-discriminatory laws and policies
in many ways, including the following:• Ethics and Compliance program, led by our Chief Ethics & Compliance Officer, with Board oversight• Code of Ethics and Business Conduct• Annual Ethics and Integrity Training• Anti-Corruption Compliance Manual• Integrity Helpline to report ethics and compliance questions or concerns• Supplier Code of Conduct, which mirrors the Responsible Business Alliance (RBA) Code of Conduct92

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