2021 Sustainability ReportCreating a better
tomorrow. Today.

Table of Contents

Introduction

Our BusinessCommitting to a Responsible Business

AppendixCommitting to a
Responsible Business

Appendix

14 Emissions and Energy Consumption

23 Our Employees

41 Stakeholder Engagement

61 United Nations Sustainable

11 Our Values

16 Water and Waste Management

28 Diversity, Equity and Inclusion

11 Tomorrow, today

18 Environmental Compliance31

12 Net Zero Commitment

19 Product Stewardship33 Employee Compensation

Our Business

Protecting our Planet
and Environment

03 About this Report

08 About onsemi

04 Message from our
President and CEO

Ensuring Social Responsibility

Ensuring Social
Responsibility

Introduction

05 Q&A with Paul Mascarenas

Protecting our Planet and Environment

Learning and Development

and Benefits

06 2021 Highlights

35

Employee Engagement

and Material Topics
44 Corporate Governance

Development Goals

62 Triple Bottom Line

47 Enterprise Risk Management

Performance Summary

and Business Continuity

68 Sustainability Accounting

49 Ethics and ComplianceStandards Board (SASB)

36

Employee Health and Safety

52 Fair Treatment

38

Impacting our Community

54 Supply Chain

through Giving

56 Information Protection

Financial Disclosures (TCFD)

57 Public Policy

Framework

59 Quality and Customer Satisfaction

Framework
70 Task Force on Climate-Related

75 Global Reporting Initiative(GRI) Index
85 Third Party AssuranceStatement

2021 Sustainability Report			Protecting Our PlanetTableand Environmentof Contents |2

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

About this Report
Report Overview

Date of IssuancePreviously known as the Corporate Social Responsibility

onsemi publishes this Report annually. An electronic(CSR) Report, the 2021 Sustainability Report is theversion is available on the onsemi website.

ninth iteration of our voluntary non-financial public
disclosure of topics concerning environmental, social

Current issue: 2021, published in June 2022

and governance (ESG) initiatives at onsemi. This

Date of previous publication: June 2021

report was created to transparently communicate

Date of publication for the next issue: June 2023

our efforts in ESG with our investors, customers,
stakeholders and employees. These reports have

Feedback

become an important tool for managing sustainability

We welcome feedback on our activities

efforts, disclosing sustainability strategies

and performance outlined in this report.

and measures, and sharing achievements.

Please contact us if you have any suggestionsor questions regarding this report.

Report Scope
Data presented in this report covers the 2021 fiscal
year, January 1, 2021 - December 31, 2021. To
demonstrate quantitative performance, this report
includes year-over-year data to allow for trend
identification. This report contains information
about onsemi worldwide subsidiaries and joint
ventures for which we have management control.
Environmental data covers leased and owned
internal manufacturing sites, which account formost of our environmental footprint worldwide.

Reporting Principles

onsemi
Investor Relations and Corporate Development
5005 E McDowell Rd
Phoenix, Arizona 85008
investor@onsemi.com

www.onsemi.com
Reporting Assurance
Information contained in this report has been assured
by S&P TruCost Limited in accordance with AA 1000
assurance standard. Our full assurance statement
can be found in the appendix of this report.

Our 2021 Sustainability Report was prepared inaccordance with the Global Reporting Initiative(GRI), Task Force on Climate-related Financial
Disclosures (TCFD) and Sustainability AccountingStandards Board (SASB) standards.

2021 Sustainability Report			Introduction |3

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

A Letter from our President and CEO – Hassane El-Khoury
The challenges of the last two years have certainly been

We have set one of the most ambitious goals in our industry andThrough 2022 and beyond, we will continue to focus on sustainable

daunting; yet despite the ongoing battle against the pandemic,

with this commitment we will surpass the Paris Agreement’s goal

manufacturing – concentrating on emissions reduction, energy

volatile geopolitical events and the unpredictable supply chain

by a full decade. While it’s aggressive, we know that it’s the rightand water conservation, material optimization and recycling. We

constraints, I am encouraged by so many companies, including

thing to do for us, for our customers and for generations to come.

will also continue to focus on sustainable products as we innovate

onsemi, that are diligently solving the biggest challenges

and introduce technologies that enable reduced global energy use

and transforming industries while continuing to emphasize

Since celebrating my first-year anniversary with onsemi, I have

while supporting our customers to meet and exceed global energy

the commitment to create a better world for tomorrow.

taken time to reflect upon our accomplishments – and while there

efficiency standards. And we will continue to drive sustainable

is a lot to be proud of, I keep coming back to the same conclusion:practices to challenge and enable employees to embody our values

onsemi is committed to developing strategies and programs toonsemi is made up of the smartest and brightest minds from all

and act sustainably in both work and personal aspects as we

address global climate change – including introducing methods

around the world. Our employees, and the ongoing contributions

believe that every action counts in contributing to the greater good.

to reduce our greenhouse gas emissions and our impact on air,from each one, are our greatest asset – and together, we will

water and waste. In addition, onsemi is developing technology

continue to create innovative technologies and positively change

At onsemi, we are one team working together with our customers

and semiconductor products that enable our customers to

the world as we know it.

and partners for a better tomorrow. Together, we are solving theachieve their own sustainability goals. Our strategy delivers

world’s greatest challenges through technical innovation andintelligent power and sensing solutions for the sustainable

I am proud to share that onsemi was awarded eight accoladesdelivering leadership products for sustainable outcomes. We

ecosystem including electric vehicles, energy infrastructure,for 2021 including being listed on Dow Jones Sustainability Index

understand that even the smallest actions can make a positive

factory automation and advanced safety applications.

North America for the fourth consecutive year. In 2022 – for theand meaningful difference. I believe deeply in this company’s

seventh consecutive year, we were namedone of the World’s Most

future and our employees who are passionately committed to

To address our carbon footprint, we have pledged to achieve

Ethical Companies by Ethisphere; for the fifth consecutive year,

doing what’s right – today, tomorrow and for decades to come.

net-zero emissions by 2040. Net-zero emissions require

we were named part of Barron’s 100 Most Sustainable Companies;

an ambitious 1.5°C target aligned with climate science forand for the third consecutive year, one of Newsweek’s America’s

Hassane El-Khoury

emission reductions across a company’s full value chain, andMost Responsible Companies – to name a few. While I am incredibly

President and CEO, onsemi

further, ensures direct emissions will not contribute to a global

humbled by these accomplishments; we are not done.

temperature rise exceeding 1.5°C above pre-industrial times.

2021 Sustainability Report		

Introduction |4

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

To explain the importance of our ESG strategy here at onsemi, we sat down with Paul Mascarenas, member of onsemi’s Board of Directors and chair of the Governance

Q&A with Paul Mascarenas –and Sustainability Committee. Paul shares his insights regarding recent efforts and initiatives driving the company’s ESG strategy forward to achieve its climate goal. Paul

Board Member and Chair of theGovernance and Sustainability Committee

has a passion for sustainability and has pushed onsemi to be more innovative in its approach to ESG. He played a critical role in re-aligning the former Governance andNominating Committee of our board to be more focused on sustainability and was integral in its transition to becoming the Governance and Sustainability Committee.

2021 was an exciting year for onsemi. The company
went through a massive transformation and started
to focus on a winning strategy relative to its business
operations. In addition, onsemi committed to be netzero by 2040. Why did onsemi choose this goal?

warming above 1.5°C can have profound impacts on our planet,and determining what annual targets are needed to meet our

In 2021, we completed our acquisition of GT Advanced

including loss of biodiversity, ocean acidification and impacts on

goal. Additionally, we are preparing to commit to the Science

Technologies Inc. (GTAT), a producer of SiC. onsemi customers

agriculture yields. Our net-zero goal differs from some of the other

Based Target initiative (SBTi) and plan to do so by the end

will benefit from GTAT’s extensive experience in crystalline

commitments in the semiconductor industry by prioritizing deepof 2022. Our SBTi commitment ensures our goals are based on

growth as well as its impressive technical capabilities anddecarbonization in our operations and investment in renewable

the latest climate science and will prevent the worst effects

expertise in the development of wafering ready SiC. We

For years, onsemi has had a dedicated CSR team guiding our practices

energy before purchasing carbon offsets. Most companies have aof climate change.

intend to scale and accelerate GTAT’s development of SiC

around the triple bottom line – people, planet and profit. The
company has won many accolades over the years for our continued
commitment to ESG initiatives. However, we know that addressing
global climate change is the challenge of our time. As averagetemperatures rise, climate science finds that acute hazards such as
heatwaves and floods are growing in frequency and severity, andchronic hazards, such as drought and rising sea levels continue toto assure customers’ supply of critical components andcommitment to be carbon neutral which allows them to continue
to emit as much as they would like, as long as they purchaseWe also acknowledge that this goal is hyper-focused on emissions

carbon offsets equal to the amount they emit. At onsemi, we

and the environmental side of ESG. We are working with our internalfeel it’s important to address the root cause. We don’t want toteams to develop more granular goals around topics like diversity,

What’s next?

use a Band-Aid on a bullet hole and instead define a concrete

equity and inclusion, supplier selection, employee learning andplan that ensures our actions are solving the problem at hand.

development, data security, anti-corruption, water and waste

We have a long journey ahead, but we have a great group of

management and global giving to ensure we are incorporating

further commercialize intelligent power technologies.

leaders and employees that are passionate and able to help us
meet our goals. Whether it’s investing in infrastructure to help

including supply chain disruptions, damage to owned operations andWe understand the big picture goal – net-zero by2040 – but can you tell us how onsemi plans to getthere? What are some of your short-term goals?

endangerment, death or injury to people in impacted communities.

We realize this is a big commitment and we are taking the time

At onsemi, we’re creating a future we want to live in. We understandto build a solid roadmap to ensure we achieve this goal. We

onsemi has many products that support a moresustainable future. Can you tell us about a technology
you’re excited about?

that the contributions we make today can have an impact on theacknowledge we still have a lot of work to do – Rome was not

At onsemi, we provide intelligent sensing and power solutions toreport will give an in-depth look at our achievements thus

world tomorrow. We knew we needed to address climate change

built in a day! In 2021, we focused on vetting the correct goal

help our customers solve the most challenging problems and create

far and highlights the key performance indicators we are

more directly and strategically, thus our net zero goal was born.

and strategy for our business. We worked with BSR, a global

cutting-edge products for a better future. Our intelligent power

tracking to ensure we are achieving our goals. We are looking

nonprofit that works with companies to develop sustainable

technologies accelerate automation and enable efficient power

forward to what’s to come and invite you to follow along on

How does this goal support the fight against climatechange? How is this goal different than some of theother commitments in the semiconductor industry?

business strategies and solutions, to develop this goal and build

production, distribution and consumption in the automotive andthis journey – we know it will be one exciting ride! To learn

our strategy. Additionally, we took time to educate our internalindustrial sectors. Silicon carbide (SiC) is a key component of next-

more, please visit onsemi.com/tomorrowtoday.

teams and ensure they understand how this goal will impact

generation semiconductors that provides sustainable technicalonsemi’s net zero by 2040 goal demonstrates leadership in addressing

them – whether they are in global supply chain, finance or productbenefits and improves system efficiency in many applications,development. We also needed to ensure we had the correct

including electric vehicles (EVs), EV charging and energy

team in place to lead this strategy. Now that we have built thisinfrastructure. SiC supports the electrification of the automotive

strong foundation, we are mapping out our roadmap to 2040

industry and allows for lighter and longer-range electric vehicles.

increase at alarming rates. These acute and chronic hazards have asignificant impact on human development and economic productivity,

climate change by focusing on how we can make a difference. Our
goal aligns with the Paris Agreement and ensures direct emissions
will not contribute to a global temperature rise exceeding 1.5°C

the social and governance sides of ESG within our strategy.

us reduce our emissions at the facility level, designing cuttingedge technologies to help our customers improve sustainableefficiencies in their products or ensuring our internal workforce
consists of diverse talent, we strive to keep ESG top of mindin everything we do at onsemi. Our annual sustainability

above pre-industrial times. Climate scientists have determined that2021 Sustainability Report			Introduction |5

Table of Contents“

At onsemi, we understand that we cannot
solve tomorrow’s problems with yesterday’s
thinking. We employ innovative thinking thatdelivers cutting-edge technology to solve
the world’s most challenging problems.
Our products and technologies enable ourcustomers to deliver on the promise of amore sustainable future. Moreover, we takefundamental responsibility for our actions andIntroduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Barron’s 100 Most
Sustainable Companies;
Five Consecutive Years
In 2022, onsemi ranked #41 on Barron’s 100
Most Sustainable Companies. Companies
are scored on five key areas: shareholders,
employees, customers, community and planet.

Bloomberg Gender Equality
Index; Three Consecutive Years
In 2022, onsemi was named to the Bloomberg Gender
Equality Index for our transparent disclosure practices
and overall performance across the framework’s fivepillars: female leadership and talent pipeline, equal
pay and gender pay parity, inclusive culture, sexual
harassment policies and pro-women branding.

Corporate Knights’ Clean200
global list member for 2022
In 2022, onsemi ranked #175 on Corporate
Knights’ and As You Sow’s Clean200 global
list. The Clean200 are the largest 200 publiccompanies ranked by green energy revenues.
To be eligible, a company must earn morethan 10% of total revenues from clean sources.

a positive impact on our planet, communities,
employees and stakeholders. Through ourusage and emissions, minimizing the impacts
on our planet and environment. Through our

EcoVadis Platinum
Level Recognition;
Two Consecutive Years

policies, we ensure we operate responsibly
and protect human rights throughout our
supply chain. Through our internal programs,
we develop and support our employees,
placing an intrinsic value on diversity,
equity and inclusion. And finally throughour giving efforts, we inspire tomorrow’s

In 2022, onsemi received a 79/100 score from
EcoVadis, a leading platform for environmental,social and ethics performance ratings for global
supply chains. Overall, our company scored in
the top 1% of the 912 companies assessed by
EcoVadis within the “manufacture of electronics
components and boards” industry.

International Shareholder
Services (ISS) ESG Prime
Corporate Rating;Three Consecutive Years
In 2022, onsemi maintained a “Prime”
rating by ISS ESG, one of the world’s
leading rating agencies for sustainable
investments. Our company ranked in
the top 30% of the 89 companies rated
within the semiconductor industry.

leaders through Science, Technology,
Engineering, Arts and Mathematics (STEAM)
education and donate where our help is”needed most. We are building a better future
today for the generations of tomorrow.

Alan Campbell

Chairman of the Board

2021 Sustainability Report			Appendix

2021 Highlights

seek to ensure our business operations leaveproducts, we deliver solutions to reduce energy

Committing to a Responsible Business

Platinum Responsible Business Alliance (RBA) Validated Assessment Program(VAP) Recognition for Receiving a Perfect Score of 200 for Initial Recipient Sites
The onsemi manufacturing sites in Bucheon, South Korea received this recognition.
onsemi had five sites with a perfect score of 200 points on their remote initial audit
resulting in RBA Recognition. These five sites are Mountain Top, Pennsylvania, UnitedStates; South Portland, Maine, United States; Carmona, Philippines; Cebu, Philippines;
and Tarlac, Philippines. Due to these being remote audits, our sites did not receive official“Platinum” status but were still recognized by RBA for achieving a perfect score.

Investor’s Business Daily 100 BestESG Companies of 2021
In 2021, onsemi ranked #49 on IBD’s 100 BestESG Companies for 2021. Companies areranked based on profitability along with theirefforts in ethical and social responsibility.

MSCI ESG “A” Rating;Three Consecutive Years
In 2021, onsemi maintained its ESG “A” ratingfrom MSCI. We are among the top five industry
leaders for our ethical practices related tosourcing raw materials from areas associatedwith human rights and labor abuses.

World Finance SustainabilityAward, Two Consecutive Years

onsemi won the 2021 World Finance SustainabilityAward and was named the most sustainable company
in the semiconductor industry. This is the second
consecutive year that onsemi has won this award.

Dow Jones Sustainability Index (DJSI)North America, Four Consecutive Years
In 2021, onsemi was one of seven semiconductor
companies included in the DJSI North America
component. Companies are chosen for excellent
sustainability through the assessment ofmultiple criteria including corporate governance,
customer relations, environmental policy,
working conditions and social initiatives.

Newsweek’s America’s Most
Responsible Companies;
Three Consecutive Years

In 2022, onsemi ranked #53 on Newsweek’s America’s
Most Responsible Companies. The list ranks 499
U.S.-based companies across 14 industries.

World’s Most Ethical Companies;
Seven Consecutive Years
In 2022, onsemi was one of four companies
in the semiconductor industry to receive thisrecognition. Companies are evaluated basedon their culture, environmental and social
practices, ethics and compliance program,
corporate governance and diversity and inclusion
initiatives to support a strong value chain.

Introduction |6

Table of Contents

Introduction

Our Business

Delivering a
Sustainable Future
About onsemi
Our Values
Tomorrow, today
Net-Zero Commitment

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixTable of Contents

About onsemi

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

AppendixCompany Profile
onsemi is driving disruptive innovations to help build a better
future. With a focus on automotive and industrial end-markets,the company is accelerating change in megatrends such as

Founded in

1999

Committing to a Responsible Business

Headquartered in
Phoenix, Arizona$6.7

billion revenue in 2021

ON

Publicly traded(Nasdaq: ON)

vehicle electrification and safety, sustainable energy grids,
industrial automation and 5G and cloud power. With a highly
Hassane El-Khoury ispresident and CEO$5.011billion in sustainable product revenue

differentiated and innovative product portfolio, onsemi creates
intelligent power and sensing technologies that solve the world’s
most complex challenges and leads the way in creating a safer,factor, enhanced active-mode efficiency and reduced standbymode power consumptions. Our intelligent power technologies

lower temperature operation, reducing cooling requirements,

femalefemale board of directors

25.7%

25%

minority workforce (U.S. Only)

female executive leadershipsaving costs and minimizing weight while delivering the required
power with less die per module and achieving a higher range for

80,000different partsof our 2021 revenue wasfrom auto and industrial

up ~61% of our 2021 revenue.

Manufacturers (OEMs) develop innovative products and navigate
industrial automation, smart buildings and power conversion.
From wide-bandgap technologies, such as SiC and gallium
nitride (GaN), power metal-oxide-semiconductor field-effecttransistors (MOSFETs), insulated-gate bipolar transistors (IGBTs)
and gate drivers to state-of-the-art imaging, depth sensing andconnectivity devices, our versatile portfolio helps OEMs tailor
their designs to fulfill the needs of every application.
Cloud and 5G applications demand large-scale power
management solutions with the utmost efficiency, quality

Our intelligent sensing technologies support the next generation

including totem pole power factor correction (PFC) controllers

of industry allowing for smarter factories and buildings while
also enhancing the automotive mobility experience with imaging
and depth sensing that make advanced vehicle safety andsupport customers’ use cases. We believe our intelligent sensing
technologies offer advanced features to achieve optimal results
and our product integration drives improved efficiency. This
performance is delivered in a smaller footprint while reducing61%

the boundaries of transportation.

and reliability. The comprehensive power portfolio by onsemi

solutions offer proprietary features in smaller packages that

The automotive and industrial end
markets are growing ~2x fasterthan other end markets and makeincrease in electronics content for vehicle platforms is reshaping

a given battery capacity.

automated driving systems possible. onsemi’s intelligent sensing
22 manufacturing sites worldwide,
producing tens of billions of units
per year ~80,000 different partsassistance systems (ADAS), vehicle electrification and thethe ongoing transformation across energy infrastructure,solutions across all applications by providing improved power

achieve higher efficiencies compared to our peers and allow

45%

with advancements in autonomous driving, advanced driver-

Our intelligent power technologies enable energy efficient

integration, we believe onsemi’s intelligent power solutions

20%

computing and consumer. We believe the evolution of automotive

Within the industrial space, onsemi helps Original Equipment

and reduce system cost through efficiency. With our sensing

employees

automotive, industrial and others which include communications,cleaner and smarter world.

allow our customers to exceed range targets with lower weight

33,690We serve a broad base of end-user markets, including

system latency to increase safety and throughput by providing aservices high performance computers and servers with solutions
for AC/DC power conversion, single or multiphase controllers for
DC/DC power conversions, gate drivers, smart power stages,
point-of-load DC/DC converters and hotswap protection devices.
The power conversion technologies from onsemi offer industry
leading efficiency reducing energy consumption by cloud data
centers and 5G telecom infrastructures.
With decades of experience in power conversion andmanagement, motion and a variety of sensing and connectivity
solutions, onsemi brings the expertise and technologies

proprietary feature set to solve different use cases.

necessary to address present and future environmental

Together, our industry leading intelligent power and sensing

and the fourth industrial revolution.

challenges and to support the opportunities of e-mobility

technologies help our customers solve the most challenging
problems and create cutting edge products for a better future.

2021 Sustainability Report			Our Business |8

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Worldwide Locations
Manufacturing Locations:
Belgium, Canada, Czech Republic, China, Japan,
Malaysia, Philippines, South Korea, UnitedStates and Vietnam
Design Center Locations:
Australia, Belgium, Canada, China, Czech
Republic, France, Germany, India, Ireland,Israel, Italy, Japan, Romania, Russia, Singapore,
Slovakia, Slovenia, South Korea, Sweden,
Switzerland, Taiwan, United Kingdom
and United States
Solution Engineering Center Locations:
China, Germany, Japan, Slovakia
and United States

Worldwide Workforce by Region

2021 Sustainability Report			Our Business |9

Table of Contents

Introduction

Our BusinessAs a leading semiconductor manufacturer for
more than 80,000 different parts and a global
supply chain, onsemi serves tens of thousands ofcustomers across multiple markets. Some of our
key markets include automotive solutions, industrial

Advanced Solutions Group (ASG)

Our disciplined execution of transformation initiatives in 2021

driver-assistance system (ADAS), alternative energy and

ASG designs and develops analog, mixed-signal,

resulted in record financial performance. Revenue for 2021

industrial automation. We continue to expand gross margins

advanced logic, application-specific standard

grew 28.3%. Operating income and free cash flow increased

as we shift our mix into these high-value strategic markets

products (ASSP) and application-specific integrated

six times faster than revenue as we focused our portfolio on

while ramping new products, rationalizing our manufacturing

circuits (ASIC), radio frequency (RF) and integrated

secular megatrends of electric vehicles, advanced

footprint and improving our overall cost structure.

(IoT), medical solutions and aerospace and defense.

different end-markets. If you store data in the cloud,We are organized into three operating and reportablehousing your information is running efficiently andGroup (ISG).
Power Solutions Group (PSG)
PSG offers a wide array of analog, discrete, moduleand integrated semiconductor products that perform
multiple application functions, including powerswitching, power conversion, signal conditioning,
circuit protection, signal amplification and voltage
regulation functions. If you drive an electricvehicle, onsemi components from PSG can help
you go many more miles on a single charge.

Committing to a Responsible Business

Appendix

power solutions for a broad base of end-users insolutions, 5G and cloud power, Internet of Things

Solutions Group (ASG) and Intelligent Sensing

Ensuring Social Responsibility

2021 Financial Performance

Business Areas

segments: Power Solutions Group (PSG), Advanced

Protecting our Planet and Environment

onsemi components from ASG ensure the data center
effectively, allowing you access to your information

Revenue by Market (percentage)

Revenue Type by Channel (percentage)

from anywhere at any time with a click of a button.
Intelligent Sensing Group (ISG)
ISG designs and develops complementary metaloxide semiconductor (CMOS) image sensors, image
signal processors, single photon detectors, including
silicon photomultiplier (SiPM) and single photon

DirectDistributor

DirectDistributor

avalanche diodes (SPAD) arrays, as well as actuator
drivers for autofocus and image stabilization for abroad base of end-users in the different end-markets.

Revenue by Technology (percentage)

Revenue by Region1 (percentage)

onsemi components from ISG provide improved
inspections to detect defective parts early in the42

process, ensuring end-product quality and reliability.

Intelligent Power

38

17

46

manufacturing efficiency by using cameras in quality

41

17Intelligent Sensing

Other

1 Represents sales billed from the respective country or region.

Revenue for 2021 grew

28.3%

FINANCIAL STRENGTH

UNITS

2021

2020

2019

Revenue

Dollars (billions)

$6.7

$5.3

$5.5

Sustainable Product Revenue ¹

Dollars (millions)$5,011$755$460

Recouped Scrap Materials/Precious Metals

Dollars (millions)

$26

$23

$22

1 Due to a change in calculation methodology, there is an increase in sustainable productrevenue in 2021. To learn more, see the Product Stewardship section of the report (page 20).

2021 Sustainability Report			Our Business |10

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible BusinessTomorrow, today

Our Values

want to live in. At onsemi, we have a mission to propel

Integrity

In 2021, the corporate social responsibility team (CSR)

We mean what we say, and we say what we mean. Our

began evaluating how to bring the company’s multiple

company has set high standards for our products andenvironmental, social and governance activities together

individual conduct. Our reputation depends on the highest

under one cohesive message. The decision was tostandards of ethical behavior. We are accountable fordevelop a campaign that would bring all these activities

delivering our commitments on time with the highest

together under one unifying message and hence in early

quality. We address issues objectively, using facts and2022, the Tomorrow, today campaign was launched.

live in. We have a passion to drive change and makewe do not fear open discussion or questions. WhenOur ‘Tomorrow, today’ Campaign Message

on tomorrow, it is our contributions no matter the size,on the promise of a sustainable future.

a decision has been made, we work to support it. We

The work and giving we do today are essential for a better

comply with all legal requirements and hold ourselves

future and together at onsemi, we are creating a future weCore Values

to the highest standards of ethical conduct.

MissionWe push innovation to create intelligent power andsensing technologies that solve the most challenging
customer problems. Our employees are inspired to go
above and beyond to increase stakeholder value throughhigh quality and high value products and services.
VisionDrive technology breakthroughs that deliver

Our core values, reviewed annually, define who we areas employees and as representatives of onsemi. We area performance-based company committed to profitable
growth, world class operating results, quality and deliveringsuperior customer and shareholder value. By putting
our core values of integrity, respect and initiative into
action, we each do our part in making our company agreat place to work. Each year, our board of directors
and employees receive training about our core values
through the Code of Business Conduct, which isavailable in the languages that represent our worldwide
workforce. Each of us is expected to demonstratethese core values in our roles at onsemi. These values
apply equally to us all — employees, global leadershipteams, executive staff and board of directors alike.

Appendix

constructive feedback in a work atmosphere where

the world forward with intelligent technology and a goalto achieve net-zero emissions by 2040. We understand
how we work, how we impact our planet, theenvironment and how we give back makes a difference
to the customers we serve and the communities wethe world a better place. And, while we have our eyesthat can make an impact today for a better future.

Respect
We treat each other with dignity and respect. We share
information and encourage different views in an open andhonest environment. We draw out the best in each other,recognizing that diversity of backgrounds and experience

The Tomorrow, today campaign is categorized into four pillars:

are key strengths. We all win when we support each other.
Initiative
We value people who demonstrate a positive, “can-do”
attitude, while collaborating to win. We work intelligently,
with a sense of urgency, while always maintaining ourcommitment to comply with applicable laws, regulations

1

Impacting Our Community
through Giving• Giving Now Program
Including Matching
Employee Giving

and standards. If a problem exists, we see it through• Science, Technology,

to rapid resolution while acting in an ethical manner.

Engineering, Arts
and Mathematics(STEAM) Education

our Planet
2 Protecting
and Environment• Product Stewardship• Energy and Emissions• Water and Waste

Ensuring Social

3 Responsibility• Diversity, Equity
and Inclusion• Learning and Development

Management• Employee Hiring• Environmental• Employee HealthCompliance4

Committing to a
Responsible Business• Ethics and Compliance• Supply Chain Management• Fair Treatment• Information Protectionand Safety• Disaster Relief andResponding when
Crises Arise

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Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

We are implementing an aggressive strategy to reach this goal.
Our strategy is categorized into three pillars:

Net-Zero Commitment
In 2021, onsemi announced our goal to be net-zero by 2040. This commitment

Capitalize on Efficiencies

will guide how we operate our business over the coming years and is essential toensuring we operate in a socially thoughtful and environmentally responsible
manner. This goal reaffirms our commitment to our planet and requires that•

Further investments in facilities, processes and equipment to increase

have a lasting impact on our planet and people for generations to come. We•

Explore opportunities to mitigate process gas usage

want that impact to be positive and plan to achieve this by being a net•

Identify areas where improved efficiencies can reduce raw material,

we take fundamental responsibility for its well-being. Our actions today canenergy efficiency

zero company.

fuel and resource usage

Our net-zero goal is one of the most ambitious goals among our competitors
within the semiconductor industry with $5-10B annual revenue. This net-zero

Transition to Renewable Energy

commitment will surpass the Paris Agreement’s goal by a full decade. We will
be using 2022 as our baseline year and will base all reduction targets off our
total emissions in this year.

•

Transition to an emissions-free renewable energy portfolio•

Commit to 50% renewable energy by 2030 and 100% renewableenergy by 2040

Our emissions data is verified by a third-party company, Trucost. Trucost, a•

subsidiary of S&P Global, is a leader in carbon and environmental data and risk

Join the Clean Energy Buyers Alliance to support the rapidtransition to a cleaner energy future

analysis. Our full assurance statement can be found in the appendix of this report.
In addition, our corporate social responsibility team works closely with ourPurchase Offsets and Influenceenvironmental health and safety (EHS) and facilities teams to ensure
processes and frameworks are in place to measure our progress against•

our net-zero goal. Our annual Sustainability Report will be a key resource for

For non-electricity emissions that cannot be eliminated, over the long-term,
onsemi will purchase certified offsets equal to the amount of such emissions

tracking our progress.

•

100

%

Green-E and Gold Standard certified offsets are most credible andwill be prioritized•

Leverage our Responsible Business Alliance (RBA) membership toengage supply chain stakeholders on emissions reductions

Renewable energy by 2040

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Introduction

Protecting our Planet and Environment

Our promise for abrighter tomorrow
Emissions and Energy Consumption

Water and Waste Management
Environmental Compliance
Product Stewardship

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixTable of Contents

Introduction

Our Business

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Total Scope 1 GHG Emissions (metric tons of CO2e)

Emissions and Energy Consumption

Scope 1 Emissions

We are dedicated to reducing our energy consumption

power consumption and improve energy efficiency.

and overall carbon footprint in alignment with

Examples of these products include solar inverters,

our net-zero by 2040 goal. As stated in theefficient motors for fans, HVAC units, power tools,Intergovernmental Panel on Climate Change’s

power conversion (as a part of the shift toward(IPCC) Sixth Assessment Report, it is unequivocal

renewable energy), electric cars and products thatthat human activities related to greenhouse gas (GHG)

assist with the transition from coal to renewables.

emissions have warmed the atmosphere, ocean andland. This warming has created widespread and rapid

At onsemi, we take climate change seriously. Forchanges around the world that include rising sea levels,

years, we have taken steps to reduce GHG emissions

melting glaciers and more frequent extreme weather

and energy consumption throughout the company’s

events. Climate change is undeniable, and the main

operational footprint. We measure and report Scope 1

driver of climate change is human-based activities.

and 2 emissions at our manufacturing sites along withselect categories of Scope 3 emissions. We know that

Increasing energy demands and GHG emissions arewhat gets measured is managed. Our Environmental

driving a global mandate for energy efficiency and

Health and Safety (EHS) management team has

reduced emissions, including the replacement of fossil

implemented policies and procedures to ensure ourfuels by clean alternative energy sources. Government

manufacturing sites are reporting accurate and complete

regulations for improved energy efficiency in countries

data on a quarterly basis as it relates to emissions andsuch as the U.S., United Kingdom, France and China

energy consumption. To keep our carbon accounting

are further enforcing this mandate. Fortunately,

cohesive across all operational activities, onsemi reports

our comprehensive portfolio of intelligent power

all emissions on a carbon dioxide equivalent basis (CO2e).

and sensing technologies is designed to minimize

Protecting our Planet and Environment

Scope 1 emissions are direct emissions
from company-owned and controlled
resources. Some examples of Scope
1 emissions include emissions fromfuels used in heating or furnaces
and process emissions from process
chemicals used in industrial processes.

Scope 1 Process Gases by Type (metric tons of CO2e)

onsemi directly emits GHG emissions
from fabrication and assembly
and test locations. We work toeliminate Scope 1 emissions by:• Installing efficientmanufacturing technologies.
• Exploring eliminating
nonessential fluorinated gases
and using alternative gases.
• Exploring the installation
abatement devices that treat
the exhaust of gases used insemiconductor manufacturing.

Please note that each category is shown on an independent scale.

2021 Sustainability Report			Protecting Our Planet and Environment |14

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Committing to a Responsible Business

Appendix

Scope 2 Emissions
Scope 2 emissions are indirect emissions from theWe work to reduce Scope 2 emissions by:

generation of purchased energy. For our purposes, this• Increasing energy efficiency in our manufacturingmeans our purchased electricity. onsemi indirectly emits

processes, buildings and operations.

GHG emissions from electricity purchased for manufacturing.

• Exploring investments in renewableenergy projects around the globe.

Total Energy Consumption (megawatt hours)

Total Scope 2 GHG Emissions (metric tons of CO2e)

EnergyEnergy efficiency is central to the success of our
products and operations. Along with our products,

Energy Consumption by Source (megawatt hours)

which help to reduce energy consumption, we
regularly implement energy conservation andconsolidation projects. Our total energy

Scope 3 Emissions

consumption in 2021 was 1,781,685 megawatt
hours (MWh).

Scope 3 emissions are indirect emissions that occur

we have seen a significant reduction in our businessin the value chain of the company, including bothtravel-related emissions over the past two years.

upstream and downstream emissions. Some examples

As the world continues to open up, we expect thatof Scope 3 emissions include business travel, emissions

figure to increase. Additionally, we expect to have a

our suppliers create making the products we purchase,full Scope 3 inventory completed in 2022.

energy options in the future. We are exploring options

We will work to reduce our Scope 3 emissions by:

100% renewables by 2040.

employees commuting and emissions from thetransportation of our products to the end-user.

As part of our strategy to achieve net-zero by 2040,
we will investigate and invest in renewable and clean
to help us transition to 50% renewables by 2030 and• Collaborating with suppliers to assist them in tracking
Currently, onsemi only tracks Scope 3 emissions related

and managing their own Scope 1 and 2 emissions.

to our business travel. Due to the COVID-19 pandemic,

Total Scope 3 GHG Emissions (Business Travel) (metric tons of CO2e)

2021 Sustainability Report			1,781,685*

2021 Total Energy Consumption* MWhProtecting Our Planet and Environment |15

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Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Water and Waste Management
Water Management
High purity water is a necessity for semiconductor

to focus on conservation, reduction of chemical usage

manufacturing, as it is used in delivering chemicals,and effective treatment of water waste. We regularly

washing wafers and many other operations within theinterface with local regulatory agencies to ensure thatfabrication process such as scrubbing the exhaust ofusage of water resource and water waste discharge

our systems to reduce pollution. When the process

is lawful and does not damage the environment.

4.9%

is complete, the water used in these processes isdischarged to waste treatment facilities as non-We actively seek to avoid negative water-related

Reduced Water Withdrawal

hazardous industrial waste; most water is supplied

impacts. Our organization strives for transparency

compared to previous year

to our facilities by third-party resources who reportwith stakeholders, displaying deliberate stewardshipwater withdrawal from groundwater or surface water.

of water as the important resource it is. Following this,
we firmly believe that reduction in water usage enables

To identify and avoid negative water-related impacts,

the shared usage of water resources and reduces cost

there are many tools and methodologies usedwithin process methods; therefore, we continue tothroughout our facilities, including laboratory analysis

seek out water recycling, reuse and reduce options.

of both incoming and outgoing water from a facility.
This analysis allows for the continued production

All of our wastewater is treated before it is discharged,of high purity water and ensures against potential

and our effluent discharge meets or exceeds local

negative impacts regarding water waste discharge.

WATER USAGE (MEGALITERS)

2021

2020

regulations. In 2021, 1,398 megaliters of water wereTotal Water Withdrawal

13,59914,332

withdrawn from high or extremely high water-stressed

Surface Water00Groundwater

885

1,031

Seawater00Another assessment used in identifying potential

regions, out of the total 13,599 megaliters of water

impacts is comparing our organization to common

withdrawn. We are committed to recycling waterindustry practices and standards. Researching theseand reducing our water consumption. As part of ourpractices and standards allows us to continue tocommitment to water-use efficiency, 5,779 megaliters

Third Party Water

12,714

13,301

modernize and develop our methodologies to increaseof water were recycled in 2021. That water recycled

Total Water Recycled

5,779

6,374

efficiency and decrease negative impacts on our water

is the equivalent of approximately 2,300 Olympic-

resources. We work with process and facilities engineers

sized swimming pools. In 2021, we reduced water

Total Water Recycled (%)

42%

44%

to determine process needs, understand the waste

withdrawal by 4.9% compared to the previous year.

Extremely High1

271

275

High2

1,127

1,081

that is produced and effectively utilize our resources

2021 Sustainability Report			1 According to the World
Resource Institute’s Aqueduct
Water Risk Atlas, extremely
high water-stressed regions
include Oudenaarde, Belgium.
2 According to the World
Resource Institute’s Aqueduct
Water Risk Atlas, high waterstressed regions include
Pocatello, Idaho, U.S.; Suzhou,
China; and Tarlac, Philippines.

Water Withdrawal in Water-Stressed Regions

Protecting Our Planet and Environment |16

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Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Total Waste Generated (metric tons)

Waste Management
Each of our manufacturing sites haveprojects that contribute to a reduction
in waste. Some of these projects led toa reduction in chemical consumption
or increase in recycling waste. For
example, our sites have implemented
projects that expand the lifetime of

Total Waste Directed to Disposal (metric tons)¹

cleaning baths, modified processes
to reduce the volume of chemicals
per wafer or installed mini pumps for
optimal application of chemicals.
In 2021, the total amount of hazardous

1 Due to a redefinition of waste categorization, the amount of hazardous
waste directed to disposal increased from 2020 to 2021.

and non-hazardous waste that werecycled from our manufacturing andTotal Waste Diverted (metric tons)

non-manufacturing sites globally was
18,515 metric tons, while waste directed
to disposal was 8,652 metric tons. Our
total hazardous waste generated was
9,842 metric tons; this includes bothsolid and liquid waste, but does notinclude gaseous emissions, wastewater
discharge or any waste associatedwith on-site wastewater treatment.

2021 Sustainability Report			Waste Diversion Rate (percentage)

Protecting Our Planet and Environment |17

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Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Reclamation and Recycling
Our global reclaim objectives reflect our commitment to environmental
sustainability and resource conservation while optimizing our network,
protecting our intellectual property and maximizing and re-capturing
profits. Our main reclaim center is located at our headquarters in
Phoenix, Arizona, but some of our manufacturing sites also reclaim
and recycle their own materials. The manufacturing scrap, which isprocessed, can be broken down into two categories: precious metal
bearing material and non-precious metal bearing material.
Our Take-back and Recycle Program provides our customers withan environmentally responsible solution for the return, recycling anddisposal of products, including our printed circuit evaluation boards.
This program is designed to ensure compliance with the current andforthcoming regional regulations involving producer responsibility
for recycling and proper disposal of electronic waste products.
In 2021, approximately 614,000 kilograms of scrap materials and810 kilograms of precious metals from our worldwide manufacturing
facilities, equivalent to the weight of approximately 55 schoolbuses, were processed, sorted and sold for reuse. The reclamationof these materials recouped more than $26 million USD.

Environmental Compliance
As a sign of our commitment to protecting our

In December 2019, the Environmental Protection

environment, we adhere to an increasing number

Agency (EPA) completed a Resource Conservationof laws and regulations, including the Restriction

and Recovery Act (RCRA) Compliance Evaluationof Hazardous Substances (RoHS) andInspection (the “inspection”) of our Gresham, Oregon

Registration, Evaluation and Authorization ofwafer manufacturing facility. As a result of the

Chemicals (REACH) within our own manufacturing

inspection, the EPA identified and issued citations

process as well as those of our suppliers. We

with respect to eight violations of the RCRA, including

continuously work with our suppliers to certify that

failure to mark, monitor, inspect and keep adequate

our products are free from any restricted materials

records with respect to certain waste storage tanks.

and to ensure that all metals utilized in our products

The notice of violation was completed on April 20,

are sourced from conflict-free mines. We provide

2021. As a result of these violations, onsemi entered

our customers with products and services that are

into a consent agreement with a final order date ofcompliant with all applicable electronic product related

September 17, 2021. We agreed to pay a civil penalty

environmental directives and regulations around theof $143,000. We paid this sum on October 8, 2021.

globe and industry environmental best practices.

In addition, we have fully remediated all violations
identified during the inspection.

614,000 810
In 2021, approximately 614,000 kilograms of scrap materials
and 810 kilograms of precious metals from our worldwide
manufacturing facilities were processed, sorted and sold for reuse.

2021 Sustainability Report			Protecting Our Planet and Environment |18

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Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Product Stewardshiponsemi is focused on innovation to create

As a global company with more than 100+ sites

intelligent power and sensing technologies that

including manufacturing facilities, design centers andsolve the most challenging customer problems.

offices worldwide producing more than 80,000 parts,
we are proud to showcase our accomplishments

Our product development efforts are directedin enhancing our global community. We havetowards the following:

components in medical devices, fitness trackers• Powering the electrification of the automotive

and smartwatches, autonomous and electricindustry with our intelligent power technologies thatvehicles, charging stations and solar inverters.

allow for lighter and longer-range electric vehicles

We innovate and deliver disruptive technologies

and enable efficient fast-charging systems.

to empower a strong sustainable ecosystem.

• Propelling the sustainable energy evolution with
our intelligent power technologies for thehighest efficiency solar strings, industrial
power and storage systems.
• Enhancing the automotive mobility experience with
our intelligent sensing technologies with imaging
and depth sensing that make advanced vehicle
safety and automated driving systems possible.
• Enabling automation and data exchange (Industry
4.0) with our intelligent sensing technologies
for smarter factories and buildings.
• Delivering high efficiency intelligent power
solutions to optimize power consumption in
the cloud and telecom infrastructure.

2021 Sustainability Report			100+ sites
including manufacturing facilities,

design centers and offices worldwide
producing more than 80,000 parts

Protecting Our Planet and Environment |19

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Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Sustainable Products
In 2021, onsemi had over $5.011 billion in sustainable product revenue.

emissions, aids in the transition to renewable power such as our

The following graphic illustrates onsemi’s marketecture, a comprehensive diagram that illustrates ouronsemi’s focus on intelligent power and sensing technologies andproducts in solar inverters or EV charging stations or enables

company’s portfolio in a single view that is easy to understand and explain. At the core of onsemi’s

newly implemented corporate strategy resulted in a redefinition

reduction of waste and scrap in manufacturing. The “Profit”

marketecture is the sustainable ecosystem that drives growth in the industrial, automotive andof our sustainable product offering. Our definition of “sustainable

category refers to any product that helps a company add to its

5G and cloud power markets; driving innovation with intelligent power and sensing technologies

product revenue” is revenue from products that fall under the

economic benefit in society, such as by reducing supply chain

to solve the most challenging customer problems in key applications that extend from charging,

intelligent power and sensing umbrella and products that contributerisks or improving process efficiency from products that makeenergy infrastructure, factory automation through to advanced vehicle safety and electric vehicles.

to the triple bottom line – People, Planet, Profit. The “People”

factories smarter. As a result of this redefinition and shift in focus,

category refers to any product that improves lives such as ourwe saw a significant increase in sustainable product revenue

products in medical devices or products that improve car safety.

from 2020 to 2021. We consider these products a key part of our

The “Planet” category refers to any product that helps to reducesustainable ecosystem which includes the following categories:

EV Charging

Factory Automation

5G Infrastructure

ADAS Lidar

Vehicle Electrification

MedicalCloud PowerMachine Vision

Energy Infrastructure

Advanced Safety

Automotive Lighting

2021 Sustainability Report			Protecting Our Planet and Environment |20

Table of Contents

Introduction

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Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Sustainable Products
Our products deliver cutting-edge technologies that enable our customers to create a sustainable future.
Some of our key technologies include:

NCP1681: Our latest mixed-signal controller

AR0820AT: 8 Mp pixel image sensor used

dedicated to bridgeless totem-pole power factor

for automotive applications with primary use incorrections (TP PFC) topology. The NCP1681

advanced driver-assistance system (ADAS) andtargets ultra-high density offline power supplies.

automated driving. The most common ADAS systems

The bridgeless totem-pole PFC is a power factor

provide Automatic Emergency Braking (AEB) tocorrection architecture that consists of a fast-

prevent and/or mitigate rear-end collisions.

switching leg driven at the pulse width modification

Silicon Carbide (SiC) – SiC is a key component of next-generation
semiconductors that provide technical benefits and improve system(PWM) switching frequency and a second leg that

efficiency in many applications, including electric vehicles (EVs), EV

operates at the alternating current (AC) line frequency.

charging and energy infrastructure. onsemi’s acquisition of GT Advanced

This topology eliminates the diode bridge present

Technologies (GTAT) enhances our ability to secure and grow supply of SiC.

at the input of a conventional PFC circuit, allowing
significant improvement in the power stage efficiency.

Ezairo8300: An advanced audio processor

XGS 32000: A 32.5 Mp (6580 x 4935)

with six programmable or semi-programmablecomplementary metal oxide semiconductor (CMOS)

processing cores, providing a high degree ofimage sensor in Super 35 mm optical format,

parallelism and flexibility. Its high-fidelity operation

supporting up to 53 frame per second readout withat ultra-low power consumption, along with

12-bit output at full resolution, and up to 80 fps

its multiple interfaces, flexibility to maximize

with 6K (6144 x 3160) ROI output. These sensors

performance against power consumption, andhelp make manufacturing lines better by providing

support for Bluetooth® Low Energy connectivity

cameras for quality inspection and improving

makes Ezairo 8300 an excellent choice for high-manufacturing efficiency and end-product quality by

end wireless-enabled audio applications. You

detecting defective parts early in the process.

can find Ezairo 8300 hard at work in wirelessenabled hearing aids and hearables.

2021 Sustainability Report			Protecting Our Planet and Environment |21

Table of Contents

Introduction

Ensuring Social Responsibility

Contributing to
the Greater GoodOur Employees
Diversity, Equity and Inclusion
Learning and Development
Employee Compensation and Benefits
Employee Engagement
Employee Health and Safety

Impacting Our Community through Giving

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixTable of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Our Employees
We believe our company’s vision, mission, values and culture

Our community of employees are located around the world

afford opportunities for everyone to make a differencewith major facilities in the U.S., Belgium, Canada, Germany,in building a successful global business. Core to our

Ireland, Slovakia, Czech Republic, Japan, South Korea,

philosophy is embracing diversity, implementing equitable

China, Malaysia, Vietnam, Philippines, Taiwan and India. As

processes and practices and building a culture of inclusionof December 2021, we had approximately 33,690 employees

across the organization. Diversity of thinking encourages

operating globally.

the creativity and innovation necessary for us to maintaina competitive advantage in the global marketplace.

U.S. Workforce by Ethnicity

2021 Sustainability Report			Worldwide Workforce by Region

Worldwide Workforce by GenderWorldwide Management by Gender

Ensuring Social Responsibility |23

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Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

U.S. Workforce by Race
People Manager

Individual Contributor

Senior Management hired from local community
In 2021, 100% of our senior managers hired were recruited from the local
communities in which we operate.

Full Time Employees by AgeRole by GenderTechnical Role100%of our senior managers
were hired from local
communities

2021 Sustainability Report			Ensuring Social Responsibility |24

Table of Contents

Recruitment and Retention

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

New Hires by Region

We proactively seek new candidates to add to our innovative andcustomer focused organization. We look for talented individuals who
desire challenging, empowering and engaging careers. To diversify
our workforce and balance our company culture, we recruit university
graduates and candidates from diverse backgrounds and various
perspectives. We consider recent graduates to be individuals who havebeen hired by onsemi within two years of graduating from college.

New Hires by Age

2021 Sustainability Report			New Hires by Gender

Ensuring Social Responsibility |25

Table of Contents

Interns by Region1

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Interns by GenderInterns by Age

Recent College Graduate Hires by Age

1 In 2021, there were no interns or recent college graduate hires in Japan

Recent College Graduate Hires by Region

2021 Sustainability Report			

Recent College Graduate Hires by Gender

Ensuring Social Responsibility |26

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Appendix

Promotions Globally by GenderInternal Transfers and Promotions
In addition to our external recruiting efforts, we look within our company
for new ways in which our current employees can contribute to ouroperations. We support internal transfers and promotions to allow ouremployees the opportunity to gain experience taking on a new roleor responsibility in their local area or at one of our global sites.

Equal Opportunity Employment
We are an equal opportunity employer. Our company maintains
policies and practices that are designed to prevent discrimination
against any qualified applicant or employee to the extent prohibitedby federal, state and local laws and regulations. Discrimination
based on race, color, religion, ancestry, national origin, sex, age,Transfers Globally by Gender

marital status, sexual orientation, disability, medical condition,
genetic information and status as a Vietnam-era or special disabled
veteran, political affiliation, union membership, gender orientation
or expression is prohibited.
Our policy of non-discrimination applies to all employment practices
including hiring, placement, promotion, compensation, benefits,
training and termination. Equal opportunity can only be achieved
through leadership, commitment and implementation of our diversity,
equity and inclusion (DEI) and affirmative action programs.

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Diversity, Equity and Inclusion
onsemi has long remained committed to DEI. We are strongest whendrawing on the diverse experiences, knowledge, culture and backgrounds
from all employees. We celebrate differences, promote equity and maintainan inclusive workplace for our employees. DEI helps us continue toIntroduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

DEI Mission

DEI Vision

To build a DEI culture across the organization

To have a culture where diversity, equity andthrough focused efforts across workforce

inclusion are embedded in everything we do.

diversity, workflow equity, workplace
inclusion and community partnerships.

encourage the creativity and innovation necessary to maintain a competitive
advantage in the global marketplace.
We constantly strive towards a more diverse, equitable and inclusive workplace,which benefits our company and enables us to successfully meet the needsof our customers, suppliers, employees and shareholders worldwide.

Our strategy around diversity, equity and inclusion includes anintegrated plan consisting of five pillars:

Policies, Practices
and Procedures

Strongest

Measuring Success

Learning andDevelopment

when drawing on the diverse experiences,knowledge, culture and backgrounds
from all employees
Communication
and Awareness2021 Sustainability Report			Talent andSuccession Pipeline

Ensuring Social Responsibility |28

Table of Contents

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Committing to a Responsible Business

Appendix

Workforce Diversity
onsemi strives to build a diverse talent pipeline. We understand this means more than just attracting a diverse
workforce but also developing all employees. We train leadership on how to best mitigate unconscious bias during

Employee Resource Groups

the interview and hiring process as well as providing general unconscious bias and DEI learning for all employees
around the globe.
Science, Technology, Engineering andDiverse Hiring Practices

Mathematics (STEM) Organizations

We engage with multiple organizations to attract a more

We participate in multiple diversity conferences anddiverse workforce. Some of our partner organizations

career fairs across North America throughout theinclude:year including (but not limited to) National Society• Historically Black Colleges and Universities (HBCUs)

of Black Engineers, Society of Hispanic Professional
Engineers, and Institute of Electrical and Electronic
Engineers (IEEE) Women in Engineering (WiE). We
also partner with organizations in Asia including
Women in Science, Engineering and Technology(WISET) foundation.

Succession management aligns with the company’sbusiness priorities and future growth strategy. It
is an integrated process designed to identify anddevelop employees for growth into key roles within
the company.

to understanding all generations in thegroups (ERGs) help facilitate equity inworkplace and connecting the company

the workplace. They evolve throughwith the evolving employee community.

organic formation and are business-facing
groups that support our recruitment,

Black Employee Network (BEN)

retention and advancement objectives.

BEN, established in 2019, fosters anenvironment that is conducive to theto provide scholarships and internship opportunities.
• SkillBridge, a Department of Defense program

Women’s Empowerment (WE)

recruitment, retention and career

WE, established in 2014, focuses on

advancement of Black employees. Thisempowering and supporting women togroup is committed to promoting thefor servicemembers transitioning into the civilian

succeed through professional development

company brand and emerging market

workforce.

in business, strategic and financial acumen.

penetration in the Black community.

Science, Technology, Engineering

Continuaand Mathematics for Underrepresented

Continua, established in 2020, works to

Populations (STEM UP)

cultivate an inclusive workplace where

STEM UP, established in 2015, strives toall employees are free and encouraged

develop and retain a diverse workforce,

to be themselves. This group advocates

which will positively impact our company’s

for those who are - and who support -• Year Up, a program to ensure equitable access foryoung adults taking a nontraditional higher education

Succession Management

At onsemi, our employee resource

path to gain work experience.
• EMEA, Embedded partnerships with local universities:
onsemi consults local universities on curriculums toprepare graduates for the semiconductor industry.

innovation and performance. This group’s

Lesbian, Gay, Bisexual, Transgender andemployees partner with their alma mater toprograms are focused on retaining

Queer or Questioning (LGBTQ+) people

organize pre-placement talks and showcase onsemi

employees and developing new talent inin our company, in our families and in our

technologies to attract top engineering school talent.

the local area for the underrepresented

communities.

• India, onsemi Alumni connections: Current onsemi

population.
Veteran and Military Employees (VME)

Workforce Equity
onsemi understands that it is imperative to infuse equity as the integrator for seeking a diverse and inclusive
workplace. Equity is not equality. Instead, it is creating access for all to have the same opportunities to develop skills
consistent with our business objectives and core values. This is made possible by tailoring processes and practices toonsemi strives to build adiverse talent pipeline.

Cultivate

VME, established in 2020, helps recruit

Cultivate, established in 2018, works

veterans and military members, provides

to unite a group of diverse generationstransitional assistance into the civilian

who are committed to engaging theworkforce, develops and retains theseworkforce and enhancing our collaborative

employees and increases networking

company culture. This group is devoted

through community outreach.

employee needs and redesigning talent systems.

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Appendix

Workforce Inclusion

DEI Recognitions

As a global employer with approximately 33,690

onsemi participates in multiple industry recognized diversity surveys annuallyindividuals in roles from corporate designers andto ensure we are aligned with providing an equitable workforce for all by

support functions to manufacturing line workers inmeasuring our performance to internal initiatives and other companies.

North America, Europe, Asia and Japan, it is vitalthat we engage and address the local needs
for all our employees.
Please visit our corporate news center to see all of

37%

Military Friendly® Company
In 2022, onsemi was recognized as a Military Friendly® Company for theof onsemi’s global

third consecutive year. Military Friendly® is the standard that measures

promotions are female

an organization’s commitment, effort and success in creating sustainable

our press releases, blogs and press coverage.

and meaningful benefits for the military community.

Forbes Women Top Female Friendly Company
Forbes recognized onsemi as being on the list of the 2021 World’s Top
Female Friendly Companies.

48%

of onsemi’s individual
contributors roles are female

Bloomberg Gender-Equality Index (Bloomberg-GEI)For the third consecutive year, onsemi was named to the 2022
Bloomberg-GEI which tracks the performance of public companies
committed to disclosing their efforts to support gender equality throughpolicy development, representation and transparency.

McKinsey Women in the Workplace
In 2021, onsemi was recognized by McKinsey Women in the Workplace
which provides an overview of HR policies and programs—including HR
leaders’ sentiment on the most effective DEI practices—and explores the45%of onsemi’s workforce
is female2021 Sustainability Report			intersectional experiences of different groups of women at work.
Human Rights Campaign Participation (HRC-CEI)
onsemi was one of 1,277 companies that participated in the 2022 HRC-CEI.
The HRC-CEI is a national benchmarking index on corporate policies, practices
and benefits pertinent to lesbian, gay, bisexual, transgender and queer employees.

Ensuring Social Responsibility |30

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Learning and Development
onsemi is committed to providing career advancement and development
opportunities to our global employees. Our employees are crucial to
the success of our company - it is important for us to provide global

Live Training

On-Demand Learning

programs that recognize, develop and enable our employees to grow.

Throughout 2021, onsemi continued offering our

All employees have access to Percipio, our global

Our career development philosophy is that employees own their careers

employees live professional development training

online learning platform. Percipio empowers employees

by leveraging the programs, tools and resources available to them.

sessions, even when health and safety restrictions

to take ownership of their development by offering

Employees are encouraged to partner with their manager to craft adue to COVID-19 strictly limited in-person interaction.

a full range of video lessons, digital books, audio

personal development plan that aligns with their career goals.

By leveraging virtual live training and collaboration

courses and curated “learning journeys,” available

platforms, employees across the globe can participate

24/7 on any computer or mobile device.

Leadership Pathway Modelin live, instructor-led and interactive training sessions,

The Leadership Pathways Model is intended for use by all employees.

led by professional, internally certified instructors.

Whether an individual contributor or a senior leader – we believe every• 8,788 employees took Percipio on-demand courses

employee “can lead from any seat.” We promote a variety of “learning

These live courses include:

journeys” in broad categories – for Individual Contributors and• Seven Habits for Highly Effective People

for Managers.

• Crucial Conversations• Management Essentials

Learning Pathways (each available in versions for Individual• Presentation Skills

Contributors and Managers):• Change Readiness• Continuous Improvement• Customer Focus• Diversity, Equity and Inclusion• Effective Communication Skills

In 2021 (Percipio):• Project Management for the Unofficial Project Manager• Foundational Principles
of Leadership• Problem-Solving and
Decision-Making• 59,364 hours total course time
• 3,128 unique course titles• 59,887 courses completed
Percipio courses cover a wide array of professional
development, leadership, management, businessacumen and technology training subjects. Global• Developing and Delivering Knowledge Sharing Sessions

Human Resources regularly promotes featured• The Four Essential Roles of Leadership“learning journeys” on the internal SharePoint site,
and regional HR leadership recommends relevant
Percipio courses to local employee groups.

• Relationship Building

Our career development philosophy
is that employees own their careers
by leveraging the programs, tools
and resources available to them.

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Table of Contents

Introduction

Our Business

LEAD Program

Global Compliance and Mandatory Training

Key talent and new people managers at onsemi may

Learning & Development coordinates production andbe nominated to participate in our flagship leadershipdelivery of Compliance and Ethics training content

training program, LEAD. This longitudinal, cohort-across the company.

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

based program takes new managers through four
instructor-led classes and ten self-directed courses,

New employees at onsemi are automaticallyover 9-12 months. Additionally, to address theassigned a package of e-learning modules uponwide variety of leaders at onsemi, two additionalhire, which must be completed within 45 days:

curriculums were created for Line Operations in• Workplace Harassment Prevention

manufacturing and for those leaders who manage
technical professionals in Tech Ladder. During 2021,
891 employees participated in the LEAD program,
across these four regions:• Code of Business Conduct• Corporate Social Responsibility• Information Security Awareness2021 LEAD Program Participation by Region(number of employees)

During February and March of 2021,
we transitioned from an “all at once”
compliance training season to a continuous,quarterly-release cycle. Our newly hired andonboarding employees continue to receive
automatic new hire compliance assignments.

2021 Sustainability Report			Ensuring Social Responsibility |32

Table of Contents

Introduction

Employee Compensation and Benefits

Employee Benefits and Programs

Our employees are the true heartbeat of onsemi.

onsemi strives to offer a competitive benefits package

Our accomplishments and success are the resultof the dedication, courage and accountability of
every employee. At onsemi, we’re always looking
for champions ready to drive meaningful progress.
We seek people who are bigger and smarter thanourselves. That’s how we create a company of highperformance innovators that advance intelligent
technology for a better future - for the planet,for our communities and for our people. Happy,
motivated people are key to the success of ourbusiness. Through our competitive compensation

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendixthat meets the needs of our diverse workforce. To
ensure we are strategic on our offerings, benefits arehandled at a regional level. This allows us to cater our
packages to employee values and culture, no matter
where they are in the world. Our human resources
team keeps a pulse on benefit trends to ensure weare offering a well-rounded and competitive benefit
package. All regions offer healthcare, time off andsavings benefit programs. Employees who work aminimum of 20 hours per week as a regular employee
are eligible for our benefit programs. Most benefit

United States Benefit Program Highlights:
Back-up Care

Gympass

Wellness Program

A company-subsidized backup child daycare/onsemi has partnered with Gympass to

A strong company cannot exist without

adult in-home care program is available toprovide U.S. employees with flexible daily

healthy employees. The everyday choices

U.S. employees. Anytime there is a snag inaccess to a large network of fitness andwe make can help us live healthier, happier

Employee Compensation and Awards

childcare plans, think of backup care likewellness facilities including gyms, yoga

and more fulfilling lives—both at work and at

To recognize individuals and groups who make clear

insurance; it fills in the gaps when there isand martial arts studios, boot camps,

home. The company offers a comprehensive

a disruption in regular childcare coverage

cycling classes, dance classes and more.

Wellness Program designed to improve ourso that employees can come to work. This

Both the employee and the company

employees’ overall health and well-being.

service may be used up to ten times per year.

share in the cost of membership.

The Wellness Program consists of several

and benefits program, we ensure our employees feel

programs are effective on their first day of employment.

valued for the work they contribute at onsemi.

differences to our company and stakeholders, we offer
our employees a variety of reward and performancerecognition programs. These programs include
competitive base salaries, performance-based cash
and equity awards, an employee stock purchase plan(subject to location), comprehensive health-care plans
and company contributions to retirement plans, which
ensure our employees have the means to adequately
prepare for life after onsemi.

2021 Sustainability Report			

Employees who work a minimum of

20 hours
per week as a regular employee are
eligible for our benefit programs.

elements, including a robust on-line platform
Environmental, Social and

Milk Storkthat allows you to earn up to $175 in cash

Goverance (ESG) Fund

onsemi offers Milk Stork as a benefit to our

incentives and other rewards for engaging

onsemi offers an ESG fund as an option

breastfeeding U.S. employees who needin healthy behaviors such as reaching stepto the 401(k) plan’s investment lineup. The

to travel for business purposes. Milk Stork

goals, competing in company contests,

Calvert U.S. Large Core Responsible Index

is the first-of-its-kind breast milk delivery

getting a biometric screening and more.

Fund excludes investments in industries

service for business traveling breastfeeding

such as tobacco, alcohol, nuclear power,moms who need a simple solution forweapons and gambling. It also excludes

getting breast milk to their babies backcompanies that have issues with childhome. This benefit is paid for by onsemi

labor, human rights violations, animal

and there is no cost to employees who use

abuse and poor ethical practices.

this while traveling on company business.

Ensuring Social Responsibility |33

Table of Contents

Introduction

Our Business

APAC Benefit Program Highlights:

EMEA Benefit Program Highlights:

Badminton Club, Shenzhen China

Luncheon Vouchers, Germany

The onsemi Shenzhen labor union has partnered with a local

All employees not working from a home office receive one

badminton club to provide employees with free access to theluncheon voucher per day worked in the office (6,40€), up tovenue every Tuesday. This benefit is paid by the Shenzhen

15 vouchers per month. onsemi contributes 3,10€ per voucher.

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendixlabor union with no cost to employees. This benefit supports
employee wellness by incentivizing physical activity andBike to Work, Ireland

gives employees an opportunity to explore a new sport.

This benefit is aimed at promoting alternative work commutes
and reducing environmental pollution. Employees can purchaseIntegrated Wellness Program, Hong Konga bicycle and/or related safety equipment from their gross salary

onsemi Hong Kong provides an integrated health wellness

and benefit from reduced tax, Pay Related Social Insurance

program to promote employee health, work performance(PRSI) and income levies as part of a salary deduction.

and quality of life. We work with Group Medical Service
Vendor to organize on site health and wellness activities

Child Recreation, Czech Republic

aimed at managing disease, health risk and physical fitness.

Employees receive an annual contribution for child

The program includes health checks with lifestyle analysis,recreation with a max of 1000 CZK per child per year.

health education to increase employee’s awareness for

The employee becomes eligible after the probation period.

prevailing disease at workplace and wellness exercises
to improve employee’s physical and mental health.

Vacation Vouchers, Slovakia
Employees can receive vacation vouchers up to 275€ per year

Benefit Station, Japan

once they have been with the company for 24 months.

onsemi Japan has partnered with Benefit One Inc
to provide Japan employees with welfare services.

Eco Voucher, Belgium

Employees can purchase several items including online

Employees receive a 250€ eco voucher annually which can becourses, gym memberships and attend professional

used to purchase “ecological products.” Examples of items thatsporting events at a lower price by applying throughfall within this “ecological products” definition include electric bikes,

Benefit Station. onsemi pays for this membership fee.

rechargeable batteries, gardening supplies and even solar panels

Performance Management
We strongly believe that setting clear performance expectations
and goals lead to an overall improvement in business performance.
We encourage our managers to use a fair performance
management process by setting clear expectations, delivering
regular feedback, identifying career paths and development
opportunities. We hold a pay-for-performance philosophy and wedo this by properly evaluating performance, clearly linking it tocompensation, recognizing and rewarding top performers.
In 2021, all eligible employees received a performance appraisal.
Beginning in 2022, we introduced a formal goal setting process.
This process further defines business priorities and helps
employees understand how their contributions impact overall
company success.

for their homes. This benefit is free from tax and social security
Flexi Benefits Subsidy, Singapore

contributions. The Belgium government has introduced theseonsemi Singapore supports the health and wellness ofvouchers to motivate employers to provide them and employees to

employees and their family by reimbursing dental, optical,

use them with the end goal to reduce the country’s carbon footprint.

regular health screening and sports and wellness wear/
equipment/accessories expenses subject to an annual limit
of S$1500. To further support healthcare needs, employees
who have depleted their Outpatient Medical Benefits
quantum may also request to utilize their Flexi Benefits
quantum to cover additional outpatient medical expenses.
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Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Employee Engagement
Employees are the company’s number one asset andThese two focus areas are:a key differentiator for the future. Employee feedback• There are no substantial obstacles to doing

informs what we are doing well and where we need to

my job well (Action: Mitigate Obstacles)

improve. onsemi has developed a listening strategy• There is effective sharing of information

to gather employee feedback from different channels

across business units (Action: Improve(e.g., pulse surveys, focus groups, HR mailboxes)

cross organization communication)

throughout the year. One key channel is the employee
engagement survey. The company has followed aCompany-wide improvement actions for these two

cadence of conducting a global full census engagement

focus areas were identified and will be deployedsurvey once every two years and conducting a total

throughout the year. The improvement actions

company pulse survey in the off-year to monitor

have been communicated to the company byprogress on key initiatives and focus areas.

the CEO in a video and through multiple other
employee communication channels. Employees willPulse Survey Highlights
In 2021 a total company pulse survey was completed
by 81% of our employees representing all company
locations across the globe. Respondents completed
the survey in a variety of ways including online via
direct email, mobile device and Beekeeper App (anotification system with the survey link pushed to an
employee’s mobile device). The different options helped
maximize participation particularly from the employees
without regular access to a computer and email.
The pulse survey consisted of 11 categories including
sustainable engagement, communication, inclusion andlearning and development. There were 30 questions
designed to provide valuable feedback regarding
key company strategies and initiatives. Results
were analyzed and two key strategic areas scoredlower than in the previous engagement survey.

have an opportunity to provide additional feedbackon employee engagement progress through thefollowing company communication channels:• CEO live chats• Executive skip-levels• Employee engagement SharePoint page
• HR mailboxes• Quarterly pulse surveys• Company-wide forums (quarterly all-hands meeting)
Improvement targets for the two focus areas havebeen identified and will be measured in the next
engagement survey scheduled in the fall of 2022.
According to our employee engagement survey
provider, Willis Towers Watson, onsemi isconsistently assessed to have a high-performanceengagement score when compared to other

PULSE SURVEY FOCUS
Topic

Score/Percentage

Participation/response rate

81%

Overall Engagement score

88% favorable

I feel welcome here (inclusion)

88% favorable

companies across all industries, putting the company
in the high-performance norm distinction.

2021 Sustainability Report			Ensuring Social Responsibility |35

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Employee Health and Safety
Our health and safety programs are based on our company’scommitted to compliance with all legal requirements where

Environmental Health and Safety (EHS) Policy and are valued

we operate. Our non-manufacturing sites follow our internal

at each of our sites. We protect people and minimize our environmental

procedures and local regulations related to health and safety.

impact through efforts to prevent injury, illness and pollution.

Additionally our manufacturing sites conform to ISO 14001 andEstablishing a healthy and safe environment allows our employees to

ISO 45001 specifications. 100% of our manufacturing sites,come to work each day without fear of injury or illness and is vital toabout 28,130 employees, are covered by ISO 14001 and 95% of

the quality of life of our employees and the success of our business.

our manufacturing sites, about 27,981 employees, are covered by
ISO 45001. For a list of all our manufacturing sites with ISO 14001

Our EHS management system ensures that EHS issues are

and ISO 45001 visit our Quality and Reliability website.

identified, corrected and communicated to management inboth manufacturing and non-manufacturing situations. We are

EMPLOYEE HEALTH AND SAFETY

2021

2020

Percentage

95%

81%

Injury Rate (per 100 employees)

Number0.64

0.75

Lost Days (per 100 employees)

Number2.3

1.54

Work-Related Fatalities

Number0

0

Workforce Covered by OHSAS 45001/18001

2021 Sustainability Report			Ensuring Social Responsibility |36

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Safety Standards and Expectations

Continuous Improvement

Procedures regarding emergency preparedness, hazardous materials, industrial

We set environmental, health and safety objectives and strive for continuous

hygiene and health resources and safety are standardized throughout our company.

improvement. Our EHS management teams are committed to developing,

We consult with our employees and encourage participation to identify hazards

leading and promoting a culture that supports the EHS management system by

and reduce health and safety risks. Employees are encouraged and incentivized

protecting employees from reprisal when reporting incidents, hazards, risk andto report unsafe acts or conditions to their management, EHS department oropportunities, ensuring a process for employee consultation

our anonymous ethics helpline. To promote a transparent and reliable culture,and participation and supporting EHS committees.

information is shared with all sites to further mitigate health and safety risks.
Upon hire, all employees receive safety training and many receive additional safety
training depending on their area of responsibility and associated risks. If an incident
is to occur, we use 8D protocol and Why-Why analysis to resolve incidents.
Based on our safety culture program, all employees are involved in the discussions
and activities concerning safety. There are daily workplace safety inspections
performed by employees at their respective areas to ensure there are no unsafe
conditions present. If our employees observe unsafe conditions, their duty is to enter
them into the system. Supervisors perform the same inspection daily. Managersof the departments discuss safety matters with their staff weekly and site top
managers are required to do so monthly. Employees are encouraged to indicate
safety issues or positive observations during these meetings. Lastly, we implemented
a peer-to-peer job safety review program in all factories so employees can provide
effective feedback to each other regarding unsafe habits, acts or conditions.

Peer-to-peer job safety

review program
implemented in all factories.

2021 Sustainability Report			Ensuring Social Responsibility |37

Table of Contents

Impacting Our Community through Giving

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Introducing the new onsemi Giving Now program

Today’s world requires a new mindset and approach toWith the unveiling of our new global giving program, called

address and support the ongoing challenges facing people“Giving Now,” we enabled a renewed focus at onsemi on theand communities every day. This new mindset required us

positive social impacts of our giving efforts guided by the passion

to embark on a bold new approach that would transformof our employees and onsemi’s commitment to promoting

our giving program and ignite a positive change to drive an

Science, Technology, Engineering, Art and Mathematics

even deeper impact in the future. As a result, we rebranded(STEAM) education, amplifying employees’ time and donations

our global giving program under our new Tomorrow, today

and responding to natural disasters and humanitarian crises.

campaign. This rebranding initiative required us to place ashort pause on our global giving efforts in 2021 so that the

The Giving Now program will drive positivity forward byenhanced program could be unveiled in early 2022 offering

creating meaningful change for our planet and every

exciting opportunities and new ways of giving. As part ofcommunity that we live and work in around the globe. The

the redesign, the corporate social responsibility (CSR) team

Giving Now program prioritizes giving in three simple ways:

looked at the best ways to make effective contributions
globally while further engaging employees. Additionally,
throughout the redesign process, the company strategically1reserved $3M in 2021 to support future giving activities.

Give to Donate
Match employee giving and support volunteerism
for causes they care about most.

2

Give to Educate
STEAM education grants to help students inunderserved communities achieve their dreams.

3

Give to Help
Provide local disaster relief and revitalize
communities based on local needs.

$3M

At onsemi, we believe that how we work and how we give backfuture giving activities.

Giving Now program that will make an impact today!

reserved in 2021 to support

2021 Sustainability Report			

makes a meaningful difference and while we work together fora better tomorrow, it is the giving efforts of the new onsemi

Ensuring Social Responsibility |38

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

2021 Global Giving Program Highlights$187,000*

Employees donated $187K USD
through the Benevity Sparkportal, which also provided
an additional $150K USD incompany matching to almost
450 causes worldwide.

donated by employees through the Benevity
Spark portal to almost 450 causes worldwide.

$25,000*

in scholarships was donated to each of the four
Historically Black Colleges and Universities selected.

$39,673*

donated to Treasures 4 Teachers to help
students get access to materials to expand learning.
*Amount reported above is in USD.

2021 Sustainability Report			

onsemi made enhanced changes to
employee giving benefits by increasing
thresholds for employee matching(minimum donation to be matched
was $25 USD and was reduced to $1
USD as well as annual cap was $500
USD per year, per employee, which
was increased to $1,000 USD per year,
per employee) and volunteerism inNorth America (three-hour minimum
requirement was eliminated and a new
dollars-for-doers match of $1,000 USD
per year, per employee was initiated).

Hosted over 25 global virtual
volunteerism events, in partnershipwith Visit.org, which saw increased
levels of employee engagement
around the world focused on
STEAM education activities andsustainability awareness.

Launched Benevity Mobile App
for all employees to connect
to the Spark portal making iteasier for employees acrossthe world to make donations.

onsemi underwrote a special project at $35K USD in
Oudenaarde, Belgium through the East Flanders Regional
Fund which is a combined effort of the Streekmotor23 andthe East Flanders Support Council, located near our facilities.
This donation supported five local projects that improves
the well-being of inhabitants and the environment including
boosting the self-image and self-confidence of young people,
running an organic farm where people with burnout are
welcome as well as making green space accessible to all.

Developed specific giving campaigns to support the
COVID crisis in India and disaster relief efforts tied toa tornado in the Czech Republic where we activatedemployee matching and made direct donations as follows:•

American India Foundation tied to the
COVID-19 Crisis in India ($5K USD) – to help thehealth infrastructure shortages in India.

As a global company we committed tohelp achieve the Sustainable Development
Goals (SDGs), set by the United Nations in2015. Although we believe that all SDGs arevital, the one most relevant to our employee
giving program (51%) was tied to SDG #11,
Sustainable Cities and Communities – helping
to make cities and human settlements•

Diecézní charita Brno ($5K USD) tied to thetornado in Czech Republic which helped families
to reconstruct their homes and lives.

In addition, onsemi contributed donations to other disaster
relief efforts that included the U.S. Texas winter storms;
floods in Western Europe; a typhoon in the Philippinesand flooding off the eastern coast of Malaysia.

We utilized 3BL Media’s network to amplify CSR-related
content and onsemi earned more than 1,870,000 impressions
and 517,000 page views for these articles with a majority
being focused on giving efforts: https://www.3blmedia.

com/profiles/onsemi. 3BL Media delivers purpose-driven
communications as an editorial platform for the world’s leading
companies to inspire and support global sustainable business.

inclusive, safe, resilient and sustainable.

onsemi made a commitment to four
Historically Black Colleges and Universities
with the support of the company’s
Black Employee Network in which we
provided $25K USD in scholarships($100K USD in total). Each of these
institutions have engineering and businessprograms, which complement wellwith hiring efforts at the company:

•
•
•
•

Prairie View A&M University
School of Engineering
North Carolina A&T University
School of Engineering
Howard University
School of Business
Hampton University
School of Business

Donated old company branding items fromour company merchandise store to a Phoenixbased charity called Treasures 4 Teachers.
A total of 6,925 items at fair market valueof 40K USD was donated to help students
get access to a wide selection of materials
to help expand their learning process.

Ensuring Social Responsibility |39

Table of Contents

Introduction

Committing to a Responsible Business

Acting in the Interestof Humanity
Stakeholder Engagement and Material Topics

Corporate GovernanceEnterprise Risk Management and Business Continuity

Ethics and ComplianceFair Treatment
Supply Chain
Information Protection
Public Policy
Quality and Customer Satisfaction

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixTable of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Stakeholder Engagement and Material Topics
Internal Stakeholder Engagement
We believe that the views of our stakeholders are important in making
operational and strategic decisions. We identify stakeholders that either
have a significant impact on or are significantly impacted by our operations;the method and frequency of engagement varies by stakeholder type.

1 We maintain an open-door policy, allowing

Pulse surveys
are conducted anonymously toseek employees’ opinions on topics
such as work environment, work
relationships and job responsiblities.

employees’ opinions on topics such as

employees to communicate and engage withwork environment, work relationships, job

management staff and human resources.

responsibilities, etc.

2 Our employees globally are trained in

4 We have an objective and fair performance

our Code of Business Conduct, policies

management process, which all employees

and programs including corporate social

are a part of on an annual basis.

responsibility, prevention of discriminationand harassment, anti-corruption andinformation security awareness.

5 We communicate with our employees
through various mediums including town
halls, all hands meetings, use of our intranet,

3 We conduct anonymous employee
engagement and pulse surveys to seek

2021 Sustainability Report			internal communication messages, social
media, blog posts and monthly newsletters.

Committing to a Responsible Business |41

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixExternal Stakeholder Engagement¹ The use of customer scorecards is an ongoing process andtrade shows in 2020 and 2021, we typically participate

provides results that allow us to analyze trends in overall

in many different trade shows throughout the year to

performance for each key attribute included in the scorecard.

engage existing and new customers and distributors.

² We engage our customers on a quarterly basis

⁶ We engage our suppliers to communicate and assess risk

to discuss results from customer scorecards

against our Code of Business Conduct, the RBA Code ofand customer site visits to our facilities.

Conduct and Responsible Minerals Initiative (RMI) compliance.
We also offer capacity-building opportunities to our suppliers³ Customer satisfaction surveys are distributed on a regular

to strengthen their compliance with these standards.

basis to obtain insights and improve our performanceon issues important to our customers such as sales
support, price of products, lead-time and quality.

⁷ We actively engage with associations that makerecommendations to governments and authorities onpolicy issues related to the semiconductor industry.

⁴ Customers may post questions about our company
and products through our external website to gain

⁸ We support and strengthen local communities throughexpert opinions. The questions are routed throughnonprofit organizations and educational

our technical support center, which takes ownership

institutions with financial investments andof providing timely and accurate responses.

employee volunteerism on an ongoing basis.

⁵ We participate in a variety of conferences with our

⁹ We host quarterly earning calls with our shareholders.

customers, suppliers and peers including the Responsible
Business Alliance (RBA) conference on an annual basis.
While the COVID-19 pandemic put a halt to in-person¹⁰ We publish annual reports and file with the Securities
and Exchange Commission on a quarterly basis.

Customer satisfaction surveys are distributed on a regular basis
to obtain insights and improve our performance.

2021 Sustainability Report			Committing to a Responsible Business |42

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Material Topics
In 2021, onsemi underwent significant transformation

ensuring all employees, leaders and stakeholders

related to our overall strategy and focus as anknow the material themes that steer the work weorganization. We have a refreshed group of leaders

do at onsemi.

dedicated to ensuring our processes, policies, systems
and operations are aligned with our corporate goals.

Throughout this transformational year, we decided toWith a massive transformation comes refocusing on

put a hold on our materiality assessment so we could

what’s important and material to our company. We

focus on getting the key elements in place to drive

are implementing calculated changes to the ways

our new strategy forward. We are currently in the

we are engaging our employees, focusing on career

process of developing an approach for our materiality

development, giving back to our communities, driving

assessment going forward and will report on it in our

diversity, equity and inclusion and protecting ournext annual sustainability report.

planet and environment. Once implemented, thesechanges will mold the foundation of our company

2021 Sustainability Report			Committing to a Responsible Business |43

Table of Contents

Corporate GovernanceAll business conducted at our company by employees, managers
and officers is under the direction of the CEO and the oversightof the board of directors. The board has at least four scheduled

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

BOARD MEMBERGENDERAGE

TENURECOMMITTEESAtsushi Abe

Male

68

11

Audit

Alan Campbell

Male

64

7

Executive (Chair), Audit, Governance andCommitting to a Responsible Business

AppendixQUALIFICATIONS

Sustainability
Susan K. Carter

Female63

2

Audit (Chair), Governance and Sustainability

Thomas L. Deitrich

Male

55

2

Governance and Sustainability

Gilles Delfassy

Male

66

7

Human Capital and Compensation

Hassane El-Khoury

Male

42

2

Executive

Bruce E. Kiddoo

Male

61

2

Audit

Paul A. Mascarenas

Male

60

8

Governance and Sustainability (Chair), Executive,

meetings annually where they and the various committees
review and discuss reports by management and the performanceof the company. Our corporate governance principles further
set forth certain requirements under which the board andmanagement operate.

Board of Directors Summary
This summary represents the members of onsemi’s Board of
Directors and committee representation, effective immediately
following the Annual Meeting in May 2022. All directors are
independent directors except Hassane El-Khoury, who also
serves as the president and chief executive officer of onsemi.
We have a board member age limit of 75 years old.

Human Capital and Compensation
Gregory L. Waters

Male

61

2

Executive, Human Capital and Compensation

Christine Y. Yan

Female56

4

Human Capital and Compensation (Chair)

Qualifications Key:

2021 Sustainability Report			

Semiconductor

ESG

Compliance

Government Relations

Public Company Management

Manufacturing

Mergers andAcquisition

Sustainability/Climate

International

Finance

MarketingInformation Security

Committing to a Responsible Business |44

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixCommittee Details

Board Evaluation

Our board of directors has established four standing committees:

We believe that each of our directors can and does benefit from

The board believes that having good governance principles and1. Audit Committee

candid feedback received from other board members about his orpractices improves the effectiveness of the board and correlates

2. Governance and Sustainability (GS) Committee

her individual performance. Accordingly, we conduct annual peer

to the creation of stockholder value. To measure its own operation

3. Human Capital and Compensation (HCC) Committee

evaluations to obtain information about each director’s individual

against such principles and practices and to identify and act on areas

4. Executive Committee

performance, contributions and effectiveness. These director peerfor improvement, each member of the board and its committees

evaluations are critical tools that promote more authentic board

performs an annual self-evaluation. The GS Committee is charged

Each committee is tasked with overseeing various aspects of ourcollaboration, improve the skills and perspectives of our directors

with overseeing the self-evaluations, and in 2021, the GS Committee

company and carrying out the responsibilities specified in its charter.

and allows them to receive guidance from esteemed colleagues.

used the following process to conduct the board’s self-evaluation:

To see a copy of the formal written charter pertaining to each standing
committee, please visit the Investor Relations section of our website.

COMMITTEE MEETINGSCHARTER REQUIRED MIN.

IN 2021

Audit

quarterly meetings

10

Executive

meet as needed

1

Governance and Sustainability

quarterly meetings

5

Human Capital and Compensation

quarterly meetings

6

Development of
Self-Assessment Tools

Self-Assessment Launchand Processing of Results

Board Review

Feedback Incorporated• Input from Board• Results sent to Board• Board Chair and Chair• Changes to practices

Chair and Chair ofChair and are reviewedof the GS Committee

are considered andthe GS Committee

by Board Chair andreview results with

implemented, as

Chair of the GS

full Board in executive

appropriate

Committee

session• Input from Corporate
Secretary• Results inform theBoard’s refreshment,
recruitment andselection process

Director peer evaluations
are critical tools that promote moreauthentic board collaboration.

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Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Changes to Committee in 2021
In August 2021, the board, in consultation with theAdditionally, the board, in conjunction with the

GS Committee, determined that there was overlap

members of the HCC Committee, expanded thein the roles served by certain committees of theformal oversight in managing the company’sboard and, accordingly, dissolved the Science

approach to human capital management, recognizing

and Technology Committee as part of an effort tothe vital role that the company’s workforce

streamline the company’s governance processes.

plays in generating its financial and operational
success. In turn, the former “Compensation

Board Oversight of ESG

During 2021, the board, in conjunction with theCommittee” was expressly tasked with oversightmembers of the GS Committee, took on a moreof the company’s policies and strategies withThe GS Committee has the responsibility of overseeing

active role in the oversight of the company’s

respect to human capital and was renamed as thematters related to ESG, unless there is a specific matterclimate and sustainability-related initiatives,“Human Capital and Compensation Committee.”connected to ESG initiatives that is assigned to anotherrecognizing the increasing importance ofcommittee of the Board. For example, the HCC Committee

environmental, social and governance (ESG)

has the responsibility of overseeing the company’s policies

oversight and of the threat presented by climate

and strategies in respect of human capital, which include

change. As a reflection of the board’s enhanced

those regarding diversity, equity and inclusion. Both the GS

focus on ESG matters, the “Corporate GovernanceCommittee and the HCC Committee play a role in the company’sand Nominating Committee” was renamed as the

management and oversight of diversity, equity and inclusion.

“Governance and Sustainability Committee” in 2021.
The HCC Committee considers diversity, equity and inclusion
in its broader review of pay equity within the company. In turn,the HCC Committee designed certain of the goals tied to the2021 short-term incentive compensation program to align withorganizational improvements to the company’s diversity andinclusion initiative and, in 2020 and certain prior years, elected
to use the achievement of a specified level of diversity within
the company’s workforce as a performance measure for the

As a reflection of the board’s commitment to

ESG matterscompensation of the company’s named executive officers under
the company’s short-term incentive compensation program.

the committee was renamed as the “Governanceand Sustainability Committee” in 2021.

2021 Sustainability Report			Committing to a Responsible Business |46

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixEnterprise Risk Management
The mission of our enterprise risk management (ERM) program

reviewing external research on the risk landscape. The risks

is to drive strategic capabilities that preserve and create value

identified and prioritized for action are closely tied with thefor our company by embedding a risk-aware decision-making

company’s operating and strategic plan. Risk response actions

culture across all functions. To that end, we have developed aand commitments are tracked for completion on a regular basis.

process and framework to effectively identify, evaluate, prioritize,

Ultimately, ERM is not considered a separate stand-alone activity,

manage and report key risks that can impact our company’s ability

but is rather integrated into the fabric of how we operate andto achieve strategic goals and objectives. We identify criticalincluded within the activities and functions we engage in to run

risks by interviewing key stakeholders within the company andour business and successfully achieve our goals and objectives.

Management Approach
Our ERM program is overseen by a Risk Committee (comprised

Board of Directors/Board Committeeof the CEO, CLO, CFO and EVP of global operations andmanufacturing). To maintain accountability at the highest
functional level, Executive Staff members are appointed as Risk

Executive Risk Committee

Sponsors for individual risks and work with Risk Owners who
manage the risk on a day-to-day basis. The board of directors
have oversight responsibility as they ensure appropriate risk

Enterprise Risk Management Teammanagement systems are in place and that risk-awareness isincorporated in the business strategy and decision-making.

Executive Risk Sponsors

Risk Owners

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Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixBusiness Continuity
onsemi understands the importance of businessWe maintain a vigorous process in which we arecontinuity and having systems of prevention andconsistently analyzing risks and working to reduce theCurrent Practice

recovery in place to assist with the disruption of

likelihood and impact of negative events, while identifying

business functions and processes that could affect

how to capitalize on the opportunities provided by the(Super Typhoon Odette)

our customers, partners and other stakeholders. Our

dynamic market and supply chain in which we operate.

business continuity program derives from our holistic

We recognize that no amount of mitigation and prevention

ERM model, which systematically, consistently andcan stop all negative impact events from occurring.

effectively identifies, evaluates priorities and manages

We engage in a robust process of planning for the

key risks and opportunities affecting the company.

response and recovery operations required to minimize
impact to our customers, partners and stakeholders.

We engage with internal and external industry experts

In December 2021, storm warnings were issued by the Philippine
Atmospheric, Geophysical and Astronomical Services Administration(PAGASA) - specifically to Visayas and Mindanao islands. This
storm soon escalated into a category 4 typhoon as it entered
the Philippine Area of Responsibility and was named Odetteby PAGASA. Super typhoon Odette caused major damage as it
traversed the Visayas and Mindanao islands. One of three onsemi

to conduct risk assessments at our facilities andassembly and test operations manufacturing sites located insuppliers to identify key risks. The types of risks we

the Philippines is in this region on the island of Cebu. As earlyface are listed below. Additionally, we mitigate certain

warnings were received, the onsemi Cebu business continuity

risks proactively through the qualification of certain

team began holding meetings and preparing for the impact of the

products to a secondary production source.

storm. Some of the critical tasks were adjusting work schedules,
planning factory shutdown, trimming tree branches, emplacing
safety nets by windows among other mitigating measures.

Types of risks we face include:
Following the storm, a state of calamity was declared in the province

Key Equipment Failures

Interruption from externallyprovided products,of Cebu largely in part because of power, water, communications
Labor shortages

processes and services

outages (cellular, Internet etc.) and impassable roads throughout theisland. Also of impact, onsemi Cebu was constrained by externallyprovided products and services such as nitrogen, gas and diesel.
onsemi Cebu resumed operations on December 17, 2021, but was

Reoccurring natural
disasters

Fires

Infrastructure
disruptions

forced to shut down on December 19, 2021, due to scarcity of water,
nitrogen and diesel supply. The business continuity team along withlocal team support helped to seamlessly transition to the recovery
phase of the event. The team solicited support from the local
government and vendors who prioritized onsemi Cebu throughout

Utility interrruptions

2021 Sustainability Report			

Cyber-attacks on
information systems

the city’s recovery operations efforts. Critical supplies and services
Pandemic

were swiftly reestablished, so the facility was able to restart by
December 22, 2021, which resulted in minimal impact to customers.

Committing to a Responsible Business |48

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Ethics and Compliance

Code of Business Conduct

Our ethics and compliance programs are designed to assist us in preventing, detecting and responding

Our Code of Business Conduct (Code) outlines the broad principles of

to unethical or illegal conduct, and to promote an organizational culture of integrity, accountability

legal and ethical conduct embraced by our company and our core values

and compliance with the law. To do this, ethics and compliance are integrated into every levelof respect, integrity and initiative to guide every business decision. Pairedof our company from the board of directors and CEO, to each individual employee.

with this is the responsibility of each employee to comply with those laws
and regulations, embrace our core values and exemplify our commitment tooperating ethically.

Ethics and Compliance Program

Together, these programs provide a procedural framework for enhancing
and monitoring our compliance with the Code, the policies referenced in theProvide Oversightand Accountability

Develop Policies,
Procedures and Tools

Code, and other rules or regulations governing our worldwide operations.
Additionally, the programs are structured to comply with, among other laws
and regulations, the requirements of the Sarbanes-Oxley Act of 2002, theForeign Corrupt Practices Act of 1977, the Dodd-Frank Wall Street Reformand Consumer Protection Act of 2010 and the Listing Rules of NASDAQ
Stock Market Inc.

Assess Risk

Communicate and Train

Continue to Improve

Engage, Investigate
and Report

Our core valuesof respect, integrity and initiative
guide every business decision.

2021 Sustainability Report			Committing to a Responsible Business |49

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Ethics Program

What it means to be a Business Ethics Liaison

We aim to implement ethical principles into everyday business operations

Our network of 44 Business Ethics Liaisons (BELs)

The availability of BELs gives employees access to a peer

by providing relevant training and guidance, targeted communications andacross the globe serve a critical role in promoting andwith whom they may raise potential concerns outside human

dedicated resources. We aspire to be a global leader in demonstrating

institutionalizing an ethical culture throughout our global

resources and their management chain. The accessibility

the power of aligning business objectives with doing the right thing.

operations. Ethics is a top-down and bottom-up processof this additional reporting channel helps our company

Our senior director, ethics and compliance, who reports directly to theat our company, and every employee is encouraged to talkintegrate ethics and compliance into our culture by building

chief legal officer, is responsible for administering and executing theabout ethics, raise concerns and share their experiences.

trust at the local level. We consider the fact employees

ethics program. She and her team manage the Code, related training and

Our CEO sets the tone at the top by communicating ourchoose to raise concerns to BELs, more than any othereducation, and oversee the intake and triage of complaints and questions

expectations and holding our managers accountable forreporting channel, to reflect the strength of the ethics andthat come into our company’s helpline or other reporting channels.

delivering on those expectations. BELs further amplify thesecompliance programs. Employees also have the option ofWorking closely with the law department, human resources and any

expectations at the local and site levels, serving as a trusted

using the Helpline, which is available online, and toll-free byother relevant departments, the ethics program ensures all concerns areresource for employees seeking guidance or wishing tophone, 24-hours a day, seven days a week, with translators

promptly and thoroughly investigated without retaliation. Our employees

raise a concern. The BEL network, which is comprised ofavailable in all languages in which we do business. Further,are empowered and encouraged to report potential ethics violations andemployees of all job functions and grade levels, is essential

unless restricted by local law, employees may make reports

taught to recognize extraordinary commitments to our core values.

to the continual strengthening of our company’s ethicalto the Helpline anonymously.

foundation and culture of integrity. Through quarterly calls,
BELs get the chance to review case studies, share bestpractices, receive trainings and discuss trends in the ethics
and compliance fields.

Helpline
U.S.: 1-844-935-0213

onsemi has a network of 44 Business
Ethics Liaisons (BELs) across the globe

All other locations: Click on the link below forcountry-specific instructions.
Online: helpline.onsemi.com

Ethics is a top-down and bottom-up
process at our company, and every employee
is encouraged to talk about ethics, raise
concerns and share their experiences.

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Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Compliance Program

Committing to a Responsible BusinessGovernance Structure

In parallel with our ethics program, we always strive
to comply with the law, and in certain areas, we have

CEO and President

adopted policies and practices that go beyond what
the law requires to foster a culture of integrity andProgram Trust and AwarenessWe believe employees’ trust and awareness of the ethics andcompliance programs is attributed to our organizations’ continuous
training and education.
An indicator of trust is the utilization of our reporting channels.
Employees have access to several reporting channels including thefollowing: The Helpline, a network of 44 global BELs, members of
the ethics and compliance programs, and direct access to the chiefcompliance officer and senior director, ethics and compliance.
Our company’s Code is central to our organization, embodying our
expectations around legal and ethical business conduct in employees’
day-to-day activities. It is available for employees to review in 14
languages, making it easily accessible to employees in all regions
where we do business.

Appendix

Board of Directors, Audit
Committee, Governance andSustainability Committee

accountability. Our chief compliance and legal officer is
responsible for administering and executing the legal

Chief Legal Officer, Chief Compliance Officercompliance program which is designed to prevent anddetect violations of the law, the Code or related standardsof conduct by employees with oversight from the audit

Senior Director, Ethics and Compliancecommittee of the board of directors.
The law department’s programs for anti-corruption, tradecompliance and data privacy are designed to include all
the essential elements for effective compliance, including

Ethics and ComplianceBusiness Ethics Liaisons,
CSR Site Champions, andSubject Matter Experts

risk assessments, policies and procedures, training, andmonitoring and auditing thorough investigation andremediation of misconduct. These legal complianceprograms are dynamic and continually evolving as ourcompany grows and the business landscape changes.

Key Stakeholders
Environmental Health and Safety, Global Security, Global
Supply Chain Operations, Human Resources, Internal
Audit and other Members of the Law Department

The ethics and compliance group reviews the Code regularly. Every
year, the board of directors and all employees are required to read andacknowledge their understanding of it by taking an online training course.
We also require managers and other select individuals to complete
additional compliance-related training courses related to topics
such as anti-corruption and privacy.

We maintain an

open-door policy,

allowing employees to communicate and engage
with management staff and human resources.

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Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Fair Treatment
At onsemi, we are committed to preserving and promoting

are held accountable to a common Code of Conduct

the fundamental rights of others and ensuring everyone isand utilize a range of RBA training and assessment

awarded fair treatment. Our company Code of Businesstools to support continual improvement in the social,

Conduct as well as the Responsible Businessenvironmental and ethical responsibility of their supply

Alliance code covers human rights in several areas,

chains. In addition to setting and holding members

ensuring we have a comprehensive stance on human rights

accountable to core standards and providing training andand fair treatment that applies to all onsemi employees,

assessment tools, the RBA regularly engages in dialogue

joint ventures, major suppliers, select service providers

and collaborations with workers, governments, civil

and contractors, and products and services. We havesociety, investors and academia to gather the necessary

several sites with collective bargaining agreements, andrange of perspectives and expertise to support and

we respect our workers freedom of association with thesedrive its members toward achieving the RBA mission andgroups. To ensure our approaches are regularly updated,values of a responsible global electronics supply chain.

we engage all relevant groups including, but not limited

At onsemi, we value our RBA membership and affirm

to, corporate social responsibility, environmental, healthour commitment to the alliance on an annual basis. In

and safety, human resources, legal, global security and2021, the RBA Code of Conduct was updated tosupply chain in our review and due diligence process. Every

Version 7.0 and was released on January 1, 2021.

individual and department at our company is responsible
for understanding and implementing the fundamental

RBA Workgroups

5 sites received a perfect score of

200 points
resulting in RBA Recognition
when audited in 2021.

Validated Assessment Program (VAP)
One of the most fundamental RBA programs is the Validated

manufacturing facilities were subject to internal audits and 14

Assessment Program (VAP). It is the leading standard

manufacturing sites participated in initial or closing RBA VAP

Many onsemi employees are active participants infor onsite compliance verification and effective, shareable

audits. Nine of our sites also participated in customer audits orvarious RBA workgroups offered by the alliance. We

audits. The primary value of an onsite compliance audit is theshared Validated Audit Reports (VAR) with customers.

have employees that participate in the VAP workgroup,

correction of identified issues. The RBA recognizes factories

The Responsible Business Alliance is the world’s

the Environmental Sustainability workgroup, the RMI

that show a commitment to corporate responsibility throughIn 2021, five sites were audited remotely. These five sites received alargest industry coalition dedicated to corporate social

workgroup and the Diversity and Gender workgroup.

verified closure of the issues identified in a VAP audit.

perfect score of 200 points resulting in RBA Recognition. These fiverights of others.

RBA Membershipsites are Mountain Top, Pennsylvania, United States; South Portland,

responsibility in global supply chains. onsemi has beena member since 2009. RBA members commit andAbout half of our manufacturing facilities are scheduled forMaine, United States; Carmona, Philippines; Cebu, Philippines; andVAP audits through RBA on an annual basis. At onsemi, weTarlac, Philippines. We also had two sites that were audited onsite.

conduct internal RBA audits on an annual basis to ensure those

These two sites, Bucheon, South Korea and Suzhou, China, received

facilities not slated for an official RBA VAP audit are remaining

Platinum and Gold recognition respectively for their audit scores.

compliant to RBA Code standards. In 2021, six out of 18 onsemi

2021 Sustainability Report			Committing to a Responsible Business |52

Table of Contents

Introduction

Our Business

Human Rights

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Prevention of Child Labor

Our formalized Human Rights Policy demonstrates

and management systems to ensure that all work at

Our practice on the use of child and young labor is

our commitment to preserving, protecting andour company is voluntary and that workers are legally

based upon our global minimum employment age policy.

promoting the fundamental rights of others asentitled to leave the company without penalty. Our

The purpose of this policy is to define and ensure thatreflected in the RBA Code of Conduct, Universal

company also ensures that workers are not required

sufficient measures and controls are in place to verify

Declaration of Human Rights, United Nations

to hand-over government issued identification

the minimum age of individuals working at our company.

(UN) Guiding Principles on Business andand original work permits to our company or any

As a rule, we only employ individuals who are at least 18

Human Rights and UN Global Compact to whichof our labor agents. We train our human resources

years of age by the first day of employment. The only

we are a signatory. Our commitment to international

staff and labor agents on the company’s practices

exception to this rule is in China, where the minimum age

human rights standards and local laws are rooted inrelated to anti-human trafficking and conduct on-

for employment is 16 years old. To confirm candidates

our core values and reinforced through our Code ofsite verification to ensure compliance. Incidents offor employment meet the minimum age requirement,

Business Conduct and other company policies.

slavery and human trafficking are also verified in our

members of our human resources department perform

supply chain using risk assessments and site visits.

due diligence to make sure we are complying with federal,

Prevention of Slavery and Human Trafficking
To prevent slavery and human trafficking, we
implemented our Slavery and Human Trafficking

Policy Statement, which ensures we are awareof and have a zero tolerance toward human rights

state, regional and local requirements. The global minimum
Our employees and other stakeholders are encouraged

age policy also describes the process to be followed

to report any concerns they may have on humanand protection afforded to discovered child laborers.

trafficking through the global trafficking hotline at
1-844-888-FREE or by emailing help@befree.org.

We apply the same minimum age requirement for
employment at our supplier companies and labor agencies.

violations. We have implemented policies, procedures

We work to ensure that our suppliers have the necessary
policies, procedures, measures and controls in placethrough risk assessments and on-site verification to
avoid incidents of child labor within our supply chain.

1-844-888-FREE stakeholders are encouraged to report any concerns.

is our global trafficking hotline where employees and other2021 Sustainability Report			Committing to a Responsible Business |53

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Supply Chain
At onsemi, we are committed to ensuring the highest
standards of social responsibility in all regions at which ourcompany is located. We insist that our suppliers provide
safe working conditions, treat workers with dignity andrespect, prohibit human trafficking and slavery (including
the procurement of commercial sex acts and the use offorced or child labor), promote ethical behavior, and use
environmentally responsible manufacturing processes
and follow principles like those in our Code of BusinessConduct. As outlined in our Supplier Handbook,to the country of manufacture and sale. Our transportation

Procurement from Local Suppliers (Percentage)

packaging meets electrostatic discharge (ESD) requirements,
and appropriate use of packing is used to prevent physical

REGION

2021

2020

2019

2018

Asia

90.5%

91.9%

92.3%

89.83%

to receive qualification and acceptance by customers in order

EMEA

83.7%

82.9%

80.2%

77.8%

to perform. Through our sales and operations planning process,North America

90.3%

91.2%

91.7%

89%

onsemi total % spend on local suppliers

88.2%

88.7%

88.1%

85.5%

damage. We require our internal and external manufacturing
facilities to complete specific tests, evaluations and calibrations

we work directly with our business units and sales teams toalign capacity and demand to support customer requirements.

the supplier must conform to all environmental laws, all

Our Suppliers

Managing Risk in the Supply Chain

Conflict Minerals

applicable laws and regulations, behave ethically, conform

Our supply chain has a multifaceted supply structure ofto all social responsibility and conflict mineral requirements

We understand that supply chain risks have the potential to

As a purchaser of products containing conflict minerals

direct materials suppliers, foundry and subcontractor

that are required by onsemi’s Corporate Social

cause disruptions to our manufacturing process, alter ourthat include tantalum, tin, tungsten, gold and cobalt fromproviders, indirect material suppliers and professional

Responsibility (CSR) Statement of Commitment,

ability to deliver our products to our customers and create a

suppliers for use in our manufacturing process and products,

service providers deployed across a global sourcing andripple effect impacting all stakeholders. Our procurement team

we continue to be concerned about the reports of violenceand provide any requested certifications and cascade all

procurement organization. In 2021, we worked with 9,500

currently uses several models to manage risk in our supply

and human rights violations resulting from the sourcing of

applicable requirements through their supply chain.

suppliers and service providers in North America, Asia

chain. From new supplier selection, we consider the financial

such metals from the Democratic Republic of the Congo

Pacific, Europe and the Middle East. Of those suppliers,

strength, quality track record, geography, CSR compliance and(DRC) and adjoining countries. As active member theapproximately 7,000 were production-related.

technology of our suppliers. Once selected, we expect them to

Responsible Minerals Initiative (RMI), we engage inadhere to the onsemi Supplier Code of Conduct outlined in our

reasonable and responsible due diligence with our suppliers

Management Approach
Our global supply chain operations (GSCO) and global
sourcing and procurement (GSP) organizations is led by our
EVP, global manufacturing and operations who reports to our
CEO and board of directors. We operate a flexible, reliable
and responsive supply chain that is compliant with IATF-

16949 and ISO 9001 requirements as defined in our internal
policies. We continually develop business partnerships withselected key suppliers and strive to ensure that all purchasedmaterials used in product manufacturing satisfy current
governmental, environmental and safety criteria applicable2021 Sustainability Report			There are a total of 96 suppliers that constitutes 85% of
our direct materials spend in 2021. We are currently in theprocess of further classifying these critical suppliers as highor low risk considering various factors such as procurement
amount, product criticality, single or dual source, and business
relationships with onsemi from both Supplier Risk Management

Supplier Handbook. We conduct bi-annual RBA conformanceand other third parties in our supply chain in a mannercertification and engage with our suppliers in regular cycles

consistent with the Organisation for Economic Co-

by clearly communicating our expectations, deploying risk

operation and Development (OECD) Due Diligenceassessments, conducting business reviews, launchingverification audits and addressing any non-conformance.

Guidance for Responsible Supply Chains of Minerals
from Conflict-Affected and High-Risk Areas (CAHRAs).

and Supplier Relationship Management perspective.
When possible, we try to keep our sourcing efforts
local by prioritizing purchasing from local suppliers.

PolicyIdentify
Risk

Risk
Management

Audit

Disclosure

Establish conflictminerals policy andmanagement system tosupport due diligence

Identify all key supplierswith conflict minerals
in their products andconduct risk assessment

Make plan for removalor replacement on
non-RMAP conformant
smelters and refiners

Support and use
RMI’s RCOI Report for
third party audit ofsmelters and refiners

File annual SEC
report and publish
Annual Conflict
Minerals Report

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Our Business

We require our suppliers to engage in due diligence to analyze their

100% conformant while gold refiners and tin smelterssources and to complete the RMI Conflict Minerals Reporting

were 98% and 96% conformant, respectively.

Template (CMRT). In 2015, we achieved our road to zero byProtecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

REPORTING YEARCONFORMANTACTIVENON-CONFORMANTNOT ELIGIBLE

TOTAL

2021

98%

1.0%

1%

0%

100%

2020

99.6%

0.4%

0%

0%

100%

Appendix

identifying all utilized smelters. This means we are aware of and can

After submitting reporting year 2020 annual conflict minerals

trace the origin of metals throughout our supply chain. We hold ourreport, Sentry (an investigative and policy team that follows

suppliers responsible and align responsibility and transparency withthe dirty money connected to African war criminals and

2019

100%

0%

0%

0%

100%

our customers’ requests. Each year, we target 100% responsible

transnational war profiteers), evaluated 50 of the largest

minerals assurance process (RMAP) conformant smelters and we

2018

100%

0%

0%

0%

100%

electronics companies in the U.S., 15 of the largest jewelry

achieved this target in 2018 to 2019 and continue to sustain theretailers and 24 of the largest automakers. They named 13 out

goal of 100% smelter conformance. If we become aware that ourof more than 1,000 major electronics, jewelry and automotive

supply chain includes uncertified minerals sourced from a conflictcompanies as “Good.” “Good” companies are defined as2021 REPORTING YEARCONFORMANTACTIVENON-CONFORMANTNOT ELIGIBLE

TOTAL SMELTER% CONFORMANT

region, we act promptly to review the circumstances and remedy

companies who report that 99 to 100% of their supply chains

Gold

105

0

2

0

107

98%

the situation as appropriate. This resulted in satisfied customers

are made up of conflict free smelters and refiners includingthat continue to request company or product-level CMRTs without

Tantalum

25

0

0

0

25

100%

onsemi. See snapshot from news article in Sentry:

Tin

50

2

0

0

52

96%

Tungsten

24

0

0

0

24

100%

Total

204

2

2

0

208

98%

Overall % Conformant

98%

1%

1%

0

non-conformant smelters or refiners. onsemi responds andcompletes more than 1,000 customer CMRT inquiries annually.
For reporting year 2021, we achieved 98% conformance of
our smelters. Both tantalum and tungsten smelters were

Overall % RMAP Conformant (percentage)“

The Good
The number of companies sourcing only
from conflict-free refiners and smelters
has increased, which is encouraging,although they are still a small minority. 13
major electronics, jewelry and automotive
companies report that 99% to 100% of their
supply chains are made up of conflict-freesmelters and refiners that are conformant
with credible, independent audits andthat require their suppliers to source fromconflict-free smelters. The companies

Total Smelters (number)hazardous materials in their products. All purchased materials,

participate in RMI workgroups including due diligence

services and products used in part manufacturing shall satisfy

practice team and minerals reporting team. Please see

current governmental, statutory and regulatory requirement, andour latest SEC Form SD, Conflict Minerals Sourcing Policy

safety constraints on restricted, toxic and hazardous materials;

as well as latest company-level CMRT for more information.

considerations applicable to the country of manufacture andcontinuity@onsemi.com.

sale. All purchased materials, services and products must
conform to onsemi’s environmental requirements described in

IBM, Macy’s, Micron Technology, Nvidia,

onsemi is committed to providing our customers with products

Signet Jewelers, Skyworks, Target,that are compliant with industry environmental best practices,

Tiffany & Co. and onsemi, and they

now and in the future. We meet all applicable Registration,”

significant achievement, as it is up fromjust a small handful in previous years.

as well as environmental, electrical and electromagnetic

For any other conflict minerals inquiry, please send to

Hazardous Substances Commitment

were Apple, Google, Intel, Microsoft,deserve praise for these efforts. That is a

2021 Sustainability Report			Members of our conflict minerals team continue to actively

Evaluation, Authorization, and Restriction of Chemicals(REACH) requirements and all products manufactured byonsemi comply with the amended Restriction of Hazardous

Substances (RoHS) directive. To support this commitment, wehave environmental requirements for our suppliers related to the

our Product Chemical Content Brochure. Suppliers must
be prepared to provide supporting evidence of conformance.

Expectations of Our Suppliers
We are committed to ensuring our suppliers have a clear
understanding of our expectations, and have the information
required to successfully meet our needs. We expect our suppliers
to conform and adhere to onsemi Supplier Code of Conduct
outlined in our Supplier Handbook. Our general expectations
for all suppliers can be found on pages 4-6 of our handbook.
Committing to a Responsible Business |55

Table of Contents

Information Protection

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Management Approach
At onsemi, the ISR team is led by our chief information• The ISR team is responsible for the security awarenessAt onsemi, we work around the clock to protect our

security officer (CISO). The team oversees complianceprogram at onsemi. Throughout the year, the team regularlycompany, technology and intellectual property fromwith the Information Technology General Controls (ITGC)

trains personnel on phishing and provides follow up training

potential cybersecurity threats and vulnerabilities. We takeframework, coordinates the Information Security program

where needed. Security awareness communications are

privacy and cybersecurity seriously and strive to identify

and facilitates risk management activities within Information

published on a regular basis and the team hosts an annualand eliminate potential threats to our IT infrastructure,

Technology (IT).

Cyber Awareness Month each October.

proprietary technologies and confidential information.

Privacy
We have developed a global data privacy program designed
to comply with applicable laws around the world and protect
the personal information of onsemi employees, customers
and others who have entrusted us with their personal data.
We also have a Data Privacy Committee that provides
strategic guidance and oversight to support our data
privacy program. In addition, our chief privacy officer has
appointed employees of various roles and grade levels
throughout the company as “Data Privacy Champions”
who advocate the importance of our data privacy program,
maintain awareness of key data privacy laws and help
reinforce best practices around data privacy matters.
For more information, please visit our Privacy Policy.

Information Security and Risk

ISR Team Responsibilities and Activities
The below represents some of the activities that are
performed and/or overseen by the ISR team:• IT established a hierarchy of policies, processes andstandards that all IT departments follow, and theInformation Security program adheres to that hierarchy.
Additionally, the ISR team developed more than 50 policies,
processes and standards that were reviewed, approved
and published. An ongoing periodic review of these policies
is completed to ensure accuracy and completeness. IT
projects are built with security controls and executed
according to the project delivery lifecycle.
• Each year, IT is subject to several internal andexternal audits globally. The CISO collaborates withthe auditors, regulators and customers to coordinate
and oversee the audit and assessment activity.

The Information Security and Risk (ISR) team is composedof several support teams that address all aspects of cyber• ISR periodically engages with an independent consultant

risk: Risk, Security Architecture and Engineering, Identity

to perform an information security benchmark against theand Access Management and Security Operations.

NIST Cybersecurity Framework. The benchmark assesses

onsemi adopted the National Institute of Standards andprogress toward the company’s desired target maturity

Technology (NIST) Cybersecurity Framework in 2014
as the foundation of the ISR program. This comprehensive
framework provides an intuitive and comprehensive set ofcontrol objectives that align with several other standard
frameworks such as ISO 27001:2013 and COBIT 5. The
ISR team adapted and implemented the framework to suit theexecutive risk appetite and business objectives of the company.

2021 Sustainability Report			state. Recommendations from the assessment are reviewed
and implemented within the IT roadmap to ensure ongoing
maturity and continuous improvement of the program.
• The ISR program governs the IT risk process on behalf ofthe chief information officer (CIO). ISR manages a cyberrisk register which is updated on an ongoing basis. Risks aremanaged via a remediation plan and reported accordingly.

• ISR team provides identity assurance via secure accessto onsemi systems and applications. The team validates
on a regular basis that the right people have accessto right data.
• In the event of a serious or material data breach, the Information
Security Program has chartered a Cyber Incident Response team
(CIRT) to act. The CIRT is comprised of subject matter experts
from the global IT team. In addition, the Information Security teamhas contracted with eSentire Digital Forensic & Incident Response
Team and IBM’s X Force IRIS (Incident Response and Intelligence
Services) on a rapid retainer basis. In the event of a serious ormaterial data breach, these rapid response services provide
security and forensic expertise immediately via phone and onsite
within 24 hours. Also, the ISR team collaborated with onsemi’s
Treasury Department to obtain cybersecurity insurance. This
type of insurance reimburses the company for costs incurred in
responding to and recovering from a data breach.
• ISR applies a risk-based approach to vulnerability management,with emphasis on critical, high-risk assets and focus on highest
risk findings to quickly reduce exposure and close critical gaps.
• The ISR team monitors onsemi systems, identifying and tracking
any threats that arise. The team works closely with outside
agencies and receives threat intelligence information regularly.
• The CISO has accountability for Key Performance Indicators (KPI)
for the information security program. The CISO reports KPIs andstatus of key IT risks to Executive Management and the Board of
Directors on regular schedules.

Committing to a Responsible Business |56

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

PUBLIC POLICIES SUPPORTED – 2021
We work with the SIA and our other associations to support U.S. government policies that promote innovation and growth. This includes federal incentives forsemiconductor manufacturing in the U.S. to increase the share of global wafer fabrication capacity located in the U.S. from its current level of only 12%, increased
Pro-Innovation, Pro-Growthfederal support for semiconductor-related research and development at universities and national laboratories, and government actions to ensure a well-educatedBusiness Environment

semiconductor workforce. In June 2021, the U.S. Senate voted to support $52 billion to fund the Creating Helpful Incentives to Produce Semiconductors (CHIPS)
for America Act and the House passed similar legislation in January 2022. The House and Senate must next resolve differences between the two bills as well aslarger differences in the legislative packages in which the bills reside.

The semiconductor industry faced ongoing challenges from the outbreak of COVID-19. Our policy advocacy centers around a 2020 statement by ten
COVID-19 Policies

semiconductor industries from around the world on the industries’ efforts to keep their employees and communities safe. The statement also urged governments
to recognize that restrictions in any one region disrupted the global supply chain of chips used in the automotive, industrial and IT industries that drive the world
economy and the life-saving medical devices that are never needed more so than during the pandemic.

Public Policy
We actively work to promote policies that support open markets and fair competition. Working through our trade associations, we oppose tariffs on

At onsemi, we support public policies that encourage innovation,
investment and open markets and enable us to create theintelligent power and sensing technologies to solve the world’s

semiconductors, including the 25% tariffs that the U.S. imposed in 2018 on imports of discrete semiconductors and integrated circuits imported from China. We
Open Markets and Fair Competition

work through the World Semiconductor Council to promote transparency on government subsidies, which depending on size, scope and discriminatory application

most complex challenges leading the way to a safer, cleaner andhave the potential to distort fair competition in global semiconductor markets. We also recommend that when the U.S. government imposes export controls, it dosmarter world. Our public policy program reflects our profile as aso under two conditions: 1) only to the extent necessary to protect national security; and 2) only if the controlled U.S. items cannot be easily substituted with

global company headquartered in the U.S., which interacts regularly

foreign sourced items.

with government agencies around the world. Much of our public
policy advocacy is performed through the U.S. Semiconductor
Industry Association (SIA), although our company is also a memberof local associations in the regions in which we operate.
We are an active participant in the World Semiconductor

Stopping Counterfeit Semiconductors

Counterfeit semiconductors are unreliable and can fail at any time. The semiconductor industry has found counterfeits in air bags, train-braking systems and otherapplications where a failure can have serious health or safety consequences. In 2021, we assisted law enforcement to identify and seize counterfeit goods andremove them from the marketplace.

Council (WSC), an organization composed of the world’s leading
semiconductor industry associations from China, Taiwan,
Europe, Japan, South Korea and the U.S. The organization
meets annually at the CEO level to make recommendations togovernments and authorities on issues such as expanding the
global market for information technology products by promoting
fair competition, sound environmental and health and safety
practices, intellectual property rights and open markets.

2021 Sustainability Report			Energy Efficiency, Fuel Economy
and Automotive Safety

We are an ally member of American Council for an Energy-Efficient Economy (ACEEE), a thought leader on energy efficiency policies such as deployment ofElectric Vehicles. Additionally, we are a member of Motor & Equipment Manufacturing Association (MEMA) that advocates for legislation and regulations related
to fuel economy and automotive safety such as advanced driver-assistance systems (ADAS) including automatic emergency braking and policies to facilitate theintroduction of autonomous vehicles.

Committing to a Responsible Business |57

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Statement on Political Contributions

External Initiatives

Participating in political activities is a very sensitive• American Council for an Energy-Efficientand complex area, and strict laws govern our politicalactivities as a company. For this reason, onsemi
does not make political contributions to individual
candidates. In the U.S., companies and otherorganizations may organize political action committees(PACs) to support political candidates with funds
voluntarily contributed by qualified employees. We
chose not to have a PAC and did not make politicalcontributions in our company’s name in 2021.

External Initiatives and Industry Associations
onsemi belongs to many associations which
we work with on various policy objectives. We
also collaborate with other outside groups andcoalitions, such as the RBA and Semiconductor
Industry Association, to advance policies thatdrive growth; promote competitiveness; andsupport our shareholders, customers, employees
and the communities in which we operate.

Economy (ACEEE), Leader tier
• Association of Climate Change Officers (ACCO)• Association for Corporate Citizenship Professionals (ACCP)• Arizona Forward• Arizona Grantmakers Forum• Arizona Tax Research Association• Boston College Center for Corporate Citizenship• Business for Social Responsibility (BSR)• Carbon Disclosure Project• CEB Compliance and Ethics LeadershipCouncil (founding member)• Chief Executives for Corporate Purpose (CECP)• Motor Equipment Manufacturers Association/ OriginalEquipment Suppliers Association (MEMA/OESA)• Pocatello Chubbuck Chamber of Commerce• Responsible Business Alliance (RBA)• Responsible Minerals Initiative (RMI)• Semiconductor Electronic Industries in Philippines Inc. (SEIPI)• Semiconductor Equipment and Materials International (SEMI)• Semiconductor Industry Association (SIA)• United Nations Global Compact• United States Information Technology Office (USITO)• World Semiconductor Council (WSC)
Membership of Associations• Conference Board – Philanthropy and Engagement Council• ECIA, Jeff Thomson, board of directors• Corporate Volunteer Council of Central Arizona• CSR Board (founding member)• Electronic Components Industry Association (ECIA)• Ethisphere’s Business Ethics Leadership Alliance (BELA)• Greater Phoenix Chamber of Commerce• Hearing Industries Association• Mactan Export Processing Zone Chamber ofExporters and Manufacturers (MEPZCEM)

Appendix• Microelectronic Industry Design Association (MIDAS) Ireland• Clean Energy Buyers Alliance (CEBA)• Joint Electron Device Engineering Council (JEDEC)

2021 Sustainability Report			Committing to a Responsible Business• JEDEC, Peter Turlo, board of directors• MEPZCEM, Benjie Gandionco, board of directors• SEIPI, Mark Knoch, board of directors• SIA, Hassane El-Khoury, board of directors• SIA International Trades Committee, Daryl Hatano, co-chair• WSC, Daryl Hatano, co-chair U.S. delegation
to joint steering committee.

Committing to a Responsible Business |58

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Quality and Customer Satisfaction
At onsemi, we are committed to operating according to

our increased focus on reinforcing our quality culture and thestringent, internationally recognized requirements for

positive results of our road to zero defects projects. The next

reliability and quality. onsemi is certified to ISO 9001, IATF

culture of quality survey will be administered later in 2022.

16949, AS9100, ISO 14001, ISO 45001, ANSI/ESD20:20,

Customer Experience
onsemi is engaged in a diverse competitive global marketplace.
We continually strive to put customers at the center of what
we do by understanding and anticipating our customer’s

military standards, and ISO 13485 for our medical products.

Customer Satisfaction

We demonstrate our commitment by continuing our Road

onsemi is engaged in a very competitive global marketplace.

expect us to grow with them and that means we must deliver

We cannot grow if we continue to focus only on our heritage

value not only through innovative quality products andand our past accomplishments. We continually strive to put

designs but also through every customer interaction.

customers at the center of what we do by understanding andIn 2022, we established a dedicated global Customer Experience

anticipating our customer’s needs for service and support

function to accelerate our ability to anticipate customer

as expressed in our Quality Policy: “We will exceed customer

needs and provide transparency on critical information

expectations with superior products and services.”

impacting customer outcomes. We will accomplish this by

to Zero Defects initiative, which was implemented several
years ago. This initiative focuses on eliminating quality
excursions, improving eight disciplines problem solving (8D)
responsiveness, lowering our parts per billion (ppb) defectrate and enhancing our quality standards. We recognize thatincorporating these objectives into our service offerings,
processes and products will enable us to use our quality andreliability as fuel for growth of our corporation. Ultimately, weare committed to maintaining a distinctive, world-class quality
system that transcends international quality standards andaims to exceed customer expectations. For more information,please see our Quality and Reliability Handbook.

Culture of Quality
To successfully navigate higher-quality expectations, onsemi
pursues activities that have a significant and positive impact
on creating a culture of quality, ensuring employees live andbreathe quality. The key drivers embedded in our company’s
focus on quality include employee ownership, leadershipemphasis, message credibility and peer involvement. Everyother year we administer a survey through Gartner® tomeasure employee understanding of our quality initiatives
and gain insights on employee perception of our quality
program. onsemi’s Culture of Quality Index score improved
year after year. In the last survey of 2020, onsemi was ranked
6th among 147 participating companies with 85% of ouremployees worldwide participating. The results reflect ourneeds for service and support. We realize our customers

upgrading our data models, internal processes as well as
The feedback we receive on the quality of our products

expanding our analytics capabilities to listen and take action

and services is a key driver. We strive to understand this toon customer feedback. Customers can expect improved digital

anticipate solutions to product and service needs that ourexperiences, making it easier to do business with onsemi.

customers have yet to recognize. We listen to our customers’
ideas about how we can better serve them from a holistic
customer experience perspective – from idea introduction
to the successful delivery of product or service.
onsemi is measuring customer feedback throughcustomer score cards, customer rewards, sales
feedback, complaints, etc. Every other year, we conduct
a satisfaction survey with our customers that measures
our performance in the areas of service, quality,
delivery, pricing and environmental sustainability.
The last survey was administered in 2020 and ended withvery positive results. A positive trend of 10% was observed
over the past six years of respondents who “strongly agreed”
with the key indicator question in the survey, “It is likely thatyou would recommend onsemi to a peer or colleague.”

employees’ perception of our quality performance due to2021 Sustainability Report			Committing to a Responsible Business |59

Table of Contents

Introduction

Appendix

Transparency
in Action
United Nations Sustainable Development Goals
Triple Bottom Line Performance Summary

Sustainability Accounting Standards Board (SASB) Framework
Task Force for Climate-Related Financial Disclosures (TCFD) Framework
Global Reporting Initiative (GRI) Index

Third Party Assurance Statement

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixTable of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

United Nations Sustainable Development Goals
The Sustainable Development Goals (SDGs), set by the United Nations (UN) in 2015, highlight the world’s biggest
social and environmental issues. The SDGs are a call to action for governments, businesses, civil society and otherorganizations to achieve a better and more sustainable future for all by 2030. As a global company and corporate citizen,
we believe we have a responsibility to help achieve the goals by adhering to the goals most relevant to our business.
While we believe all the SDGs are vital, we prioritized five goals that are the most relevant to our sustainability strategy
and will help make the largest global impact. In 2019, onsemi became a signatory to the UN Global Compact. Our mostrecent Communication on Progress (COP) submitted to the UN Global Compact outlines our alignment with its
ten principles, focused on human rights, labor, environment and anti-corruption, and our alignment with the SDGs.

Ensure access to water and sanitation for all

Reduce inequality within and among countries

Take urgent action to combat climate change•

All wastewater is treated before it is discharged into•

We promote equal opportunities for all

and its impacts

the environment•

Our ambition is to be a leader of diversity, equity••

We are committed to reducing our water consumption

and inclusion in the semiconductor industry

We have committed to net-zero by 2040 focusing on
internal operation efficiency, use of renewable energy

and recycling more waterand value chain and industry partnership as well aspurchase of carbon offsets•

Promote inclusive and sustainable economic

Ensure sustainable consumption and production

growth, employment and decent work for all

patterns•

We have zero tolerance for forced labor••

We assess and mitigate social risks within our
supply chain•

We strive for equal pay for equal work•

We focus on providing a safe workplace with zero

We actively participate in advocacy for action on
climate change

We strive for zero waste in the landfill from our finishedgoods in our manufacturing sites•

We integrate our sustainable practices into our
public reporting

injuries and occupational diseases

2021 Sustainability Report			Appendix |61

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

UNITS

Triple Bottom Line Performance Summary
This triple bottom line performance summary which focuses on people, planet and profit, was created with theintention of transparently communicating our environmental, social and governance (ESG) efforts with our stakeholders.
We organized the summary to cover the topics most relevant to our mission, our business and our partners.

Our Business
DISCLOSURE

UNITS

2021

2020

2019

Financial Strength
Revenue
Sustainable Product Revenue
Recouped Scrap Materials/Precious Metals

Dollars (billions)
Dollars (millions)

$6.7

$5.3

$5.5

Countries$5,011$755$460

Manufacturing

$26

$23

$22

Design Center

Percentage

Other

34%

32%

33%

Supply Chain

27%

25%

26%

Units shipped through Global Logistics Network

39%

43%

41%

Spend on Local Supplier by Region

Revenue by Region1
31%

34%

33%

Europe, Middle East and Africa (EMEA)

Hong Kong

27%

25%

25%

North America

17%

15%

16%

Total Company

United States

14%

14%

15%

Total Global Suppliers and Service Providers

Other

11%

12%

11%

Production-Related Supplier

Percentage

Advanced Solutions Group
Percentage

Intelligent Sensing Group

36%

36%

36%

51%

50%

50%

13%

14%

14%

36%

40%

43%

64%

60%

57%

Revenue Type by Channel

Distributor

Percentage

Number

RMAP Conformant Smelters

Revenue by Group

DirectNumber (billions)Asia-Pacific (APAC)

Singapore

Power Solutions Group

NumberSolution Engineering Center

Automotive

United Kingdom

2021

2020

2019

10

10

10

23

21

21

5

5

5

70

64.3

66.3

90.5%

92%

92%

83.7%

83%

80%

90.3%

91%

92%

88.2%

88.7%

85.5%

9,500

9,700

10,000

7,000

7,100

7,200

98%

99.6%

100%

100%

99%

85%

93.42%

96%

83%

14

5

10

Operations Footprint

Revenue by Market

Industrial

DISCLOSURE

Percentage

Suppliers that Completed a Self-Assessment
Questionnaire (SAQ)

Percentage

Suppliers Rated as Low-Risk on Their SAQ
RBA Audit Completed

Number¹Represents sales billed from the respective country or region.

2021 Sustainability Report			Appendix |62

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

UNITS

Our Governance
DISCLOSURE

UNITS

2021

2020

2019

Board of Directors (“Board”) Composition andTotal Members

10

11

7

Board Average Age

60

59

62

5

5

9

9

10

6

2

2

1

20%

18%

14%

NumberNumber of Independent Directors
Board Diversity
Women on Board

Number
Percentage

Board and Committee Meetings

Directors Attending Less than 75% of Meetings

2019

Percentage

31%

50%

34%

161

182

230

33

52

150

55%

37%

57%

1st

2nd

N/A

2nd

1st

N/A

3rd

3rd

N/A

Total Number of Reports
Concerns and Incidents
Requests for Advice

NumberSubstantiation Rate
Substantiated Reports

Percentage

Top Corrective Actions
No Action Necessary
Rank

30

34

Other

0

0

0

¹ In 2021, we adjusted the way we track the intake of our reports from intake method (email, web andphone) to channel (BEL, IT or senior management). This will be reflected in subsequent reports.
² Coaching, counseling or training.

Policies, Statement and Commitments
Anti-Corruption Policy

Non-Retaliation Policy

2020

23
NumberDuring the Calendar Year

Code of Business Conduct

Anonymous Reporters

Remedial Measure²

Board and Committee Meetings Held During the
Calendar Year

2021

Reporter Anonymity Rate

Independence

Board Average Tenure

DISCLOSURE

Yes/NoPrivacy Policy

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

44

51

52

69

100

183

125

134

197

Compliance and Ethics Program
Number of Business Ethics Liaisons (BELs)

NumberNumber of Reports and Requests for Advice byIntake Channel
BEL Reporting
Other¹2021 Sustainability Report			NumberAppendix |63

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

UNITS

Our People
DISCLOSURE

UNITS

2021

2020

2019

Global Workforce
Total Workforce

34,50036,000APAC (excluding Japan)

70%

69%

69%

Japan

5%

6%

6%

13%

12%

11%

12%

13%

14%

45%

44%

44%

55%

56%

56%

NumberWorkforce by Region

Percentage

North America
Workforce by Gender
FemaleMale

Percentage

Management by Gender
FemaleMale

Male

Percentage

Temporary (contractors/interns)

Part-time2021 Sustainability Report			< 30 Years Old
30 – 50 Years Old

Percentage> 50 Years Old
FemaleMale

Percentage

APAC (excluding Japan)
Japan
EMEA

Percentage

North America

20%

20%

< 30 Years Old

79%

80%

80%

30 – 50 Years Old

37%

38%

35%

Female

63%

62%

65%

Male

Percentage> 50 Years Old
Percentage

Percentage

APAC (excluding Japan)
Percentage

90%

90%

89%

Japan

10%

10%

11%

EMEA
North America

Workforce by Work Schedule
Full-time

2019

42%

30%

38%

31%

61%

58%

27%

9%

4%

29%

47%

52%

71%

53%

48%

37%

85%

87%

20%

5%

6%

25%

5%

4%

18%

5%

3%

28%

29%

29%

55%

55%

56%

17%

16%

15%

44%

44%

44%

56%

56%

56%

69%

70%

69%

5%

5%

6%

13%

12%

14%

13%

13%

11%

Region21%

Workforce by Contract Type
Regular

2020

Full-time Employees by Age, Gender and Region

Internal Promotions by Gender
Female2021

Contractors and Interns, by Age, Gender and
33,690EMEA

DISCLOSURE

Percentage

99.3%

99.4%

99.3%

0.7%

0.6%

0.7%

Percentage

Appendix |64

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Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

UNITS

Our People
DISCLOSURE

UNITS

2021

2020

2019

Part-time Employees by Age, Gender and Region

DISCLOSURE

2021

2020

2019

37%

50%

49%

46%

34%

40%

17%

16%

11%

41%

56%

49%

59%

44%

51%

68%

67%

73%

5%

5%

2%

8%

9%

8%

19%

19%

17%

Employee Turnover by Age, Gender and Region< 30 Years Old

11%

42%

50%

< 30 Years Old

54%

35%

27%

30 – 50 Years Old> 50 Years Old

35%

23%

23%

> 50 Years Old

Female

52%

45%

41%

Female

48%

55%

59%

APAC (excluding Japan)

0%

2%

19%

Japan

0%

0%

1%

88%

89%

68%

12%

9%

12%

American Indian or Alaskan Native

0.5%

0.45%

0.30%

61%

58%

55%

Asian

17%

18.78%

19.40%

34%

38%

40%

Black or African American

1.5%

1.48%

1.70%

> 50 Years Old

5%

4%

5%

Hispanic or Latino

4.7%

4.48%

4.60%

Female

44%

55%

37%

Native American or other Pacific Islander

0.2%

0.26%

0.20%

56%

45%

63%

Two or more races

1.8%

2.09%

2.10%

APAC (excluding Japan)

78%

77%

69%

White

60%

59.40%

61.80%

Japan

1%

3%

4%

Undeclared

14.3%

12.70%

9.90%

8%

8%

8%

13%

12%

19%

30 – 50 Years Old

Male

EMEA

Percentage

Percentage

Percentage

North America
New Hires by Age, Gender and Region< 30 Years Old
30 – 50 Years Old

Male

EMEA
North America

2021 Sustainability Report			

Percentage

Percentage

Percentage

Male

Percentage

Percentage

APAC (excluding Japan)
Japan
EMEA

Percentage

North America
U.S. Workforce by Race and Ethnicity

Percentage

Appendix |65

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Our People
DISCLOSURE

UNITS

2021

2020

2019

Black Employee Network (BEN)

Yes

Yes

Yes

Continua

Yes

Yes

No

Cultivate

Yes

Yes

Yes

Yes

Yes

Yes

Veteran and Military Employees (VME)

Yes

Yes

No

Women Empowerment (WE)

Yes

Yes

Yes

81%

85%

79%

Yes

Yes

Yes

Environmental Health and Safety Policy

Yes

Yes

Yes

Equal Employment Opportunity

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Responsible Minerals Sourcing Policy

Yes

Yes

Yes

Slavery and Human Trafficking Policy Statement

Yes

Yes

Yes

UN Global Compact Signatory

Yes

Yes

Yes

95%

81%

82%

0.64

0.75

0.77

2.3

1.54

1.3

0

0

0

Employee Resource Groups

Science, Technology, Engineering andMathematics for Under-represented Populations

Yes/No(STEM UP)

Employee Engagement Survey Completion Rate
Employee Engagement Survey

Percentage

Policies, Statements and Commitments
Corporate Social Responsibility (CSR)
Commitment

Human Rights Policy
Responsible Business Alliance (RBA)

Yes/NoFull Member

Employee Health and Safety
Workforce Covered by OHSAS 45001/18001

Percentage

Injury Rate (per 100 employees)
Lost Days (per 100 employees)
Work-Related Fatalities

2021 Sustainability Report			NumberAppendix |66

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Our Planet
DISCLOSURE

UNITS

2021

2020

2019

Emissions
Metric Tons Carbon 2,485,870

Scope 2

Dioxide EquivalentElectricity)(CO2e)

Yes

Yes

No

782,790774,849

671,656

CSR Commitment

Yes

Yes

Yes

617

1,565

12,638Environmental Health and Safety (EHS) Policy

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Rare Earth Elements Use Statement
Megawatt-Hours(MWh)

1,781,685

1,770,483

1,746,390

14,332

14,335

Megaliters

5,779

6,374

6,506

Percentage

10%

6%

N/A

Manufacturing sites in Low-Stressed Regions

8

9

N/A

Manufacturing sites in Low- to Medium-Stressed

7

7

N/A

2

3

N/A

Manufacturing sites in High-Stressed Regions

3

2

N/A

Manufacturing sites in Extremely High-Stressed

1

1

N/A

Regions

Registration, Evaluation, Authorization andRestriction of Chemical Substances (REACH)

Yes/NoStatement
13,599Withdrawal from High or Extremely High Stress2019

Climate Change Policy

Megaliters

Recycled

2020

2,074,679

Water
Withdrawal

2021

2,173,451

EnergyTotal Consumption (Natural Gas, Diesel Fuel and

UNITS

Policies, Statements and Commitments

Scope 1

Scope 3 (Business Travel)

DISCLOSURE

Restriction of Hazardous Substances (RoHS)
Statement

Regions
Manufacturing sites in Medium- to High-Stressed
Regions

NumberRegions
Waste
Hazardous Waste Generated

Metric Tons

9,842

8,123

8,336

Hazardous Waste Recycled

Percentage

42%

73%

75%

Non-Hazardous Waste Generated

Metric Tons

17,325

15,146

15,393

Non-Hazardous Waste Recycled

Percentage

83%

77%

57%

Reclaimed Scrap Materials Collected

Metric Tons

614

634

910

Reclaimed Precious Metals Collected

Kilogram (kg)

810

870

1,376

2021 Sustainability Report			Appendix |67

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Sustainability Accounting Standards Board (SASB) Framework
Reporting Period: January 1 – December 31, 2021
CODE

METRICONSEMI DISCLOSURE

METRICONSEMI DISCLOSURE(1) Total water withdrawn,(1) 13,599 thousand of m3(2) 715,545 MTCO2e(2) total water consumed,(2) onsemi is developing better strategies for

See Emissions and Energy Consumption section ofpercentage of each in regions

tracking water discharge and consequently watercompounds

our 2021 Sustainability Report, pg 14

with High or Extremely Highconsumption across its operational footprint. We aim

Discussion of long-term and

See Net Zero Commitment section of our 2021

Baseline Water Stressto have better metrics in the years to come. In 2021,

short-term strategy or plan to

Sustainability Report, pg 12

Greenhouse Gas Emissions
TC-SC-110a.1(1) Gross global Scope 1
emissions (2) amount of total
emissions from perfluorinated

TC-SC-110a.2

CODE

Water Management(1) 2,485,870 MTCO2e

TC-SC-140a.1

onsemi withdrew 271 thousand m3 of water fromareas with extremely high water stress and 1,127

manage Scope 1 emissions,

thousand m3 or water from areas with high water

emissions reduction targets,stress. ~10% of our water withdrawal is from regions

and an analysis of performancewith high or extremely high water stress.

against those targets
Energy Management in Manufacturing
TC-SC-130a.1(1) Total energy consumed, (2)(1) 6,414,066 GJ

percentage grid electricity, and(2) 100%(3) percentage renewable(3) 0%

Extremely high water stress regions - Oudenaarde,
Belgium
High water stress regions - Pocatello, Idaho, USA;
Suzhou, China; and Tarlac, Philippines

See Emissions and Energy Consumption section of
our 2021 Sustainability Report, pg 14

See Water and Waste Management section of our2021 Sustainability Report, pg 16
Waste Management
TC-SC-150a.1

Amount of hazardous waste(1) 9,842 t

from manufacturing, percentage(2) 2.83% recycled, 75% diverted from landfill

recycled

See Water and Waste Management section of our2021 Sustainability Report, pg 16

Human Health Hazard
TC-SC-320a.1

Description of efforts to assess,

See Employee Health and Safety section of our 2021

monitor and reduce exposure

Sustainability Report, pg 36

of employees to human healthhazards

2021 Sustainability Report			Appendix |68

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Sustainability Accounting Standards Board (SASB) Framework
CODE

METRICONSEMI DISCLOSURE

CODE

METRIC

Monetary Losses – Employee Health and Safety Violations

Critical Materials Management

TC-SC-320a.2

TC-SC-440a.1

Total amount of monetary

In 2021, onsemi did not incur monetary losses as alosses as a result of legal
proceedings associated with

Description of the management

onsemi discloses management approach to our

result of legal proceedings associated with employee

of risks associated with the use

responsible minerals sourcing. We are aware of thehealth and safety violations.

of critical materials

potential supply shortage of rare earth elements andemployee health and safety

their use in the production of electronic components.

violations (USD)

onsemi does not deliberately add any rare earth
elements to any of our products. There are some

Recruiting and Managing a Global and Skilled Workforce
TC-SC-330a.1

Percentage of employees that

(1) 2.56%

are: (1) foreign nationals and (2)(2) United States (country of domicile) – 11%located offshore

All other North America – 1%

trace of rare earths in certain ceramic packaging,gold wirebond and wafer fab operations, but we donot manufacture any of these materials nor are theyadded intentionally. Through our Enterprise Risk

Asia Pacific – 75%

Management (ERM) framework, tools and processes,

EMEA – 13%

we identify the loss of critical supplies as a risk that

Product Lifecycle Management
TC-SC-410a.1

Percentage of products by

In 2021, approximately 21.31% of onsemi’s portfolio

revenue that contain IEC 62474

contained IEC 62474 declarable substances,declarable substances (%)

representing ~31% of revenue.

is managed, mitigated and is tracked within the
supply chain planning, sourcing and procurement
groups and reported on a quarterly basis.
SEC Form SD Conflict Minerals Report

RoHS Statement

Rare Earth Minerals Statement

Compliance with REACH

See Supply Chain section of our 2021 Sustainability

Product Chemical Content Brochure
Materials Composition Program
Product Lifecycle Management
TC-SC-410a.2

ONSEMI DISCLOSURE

Processor energy efficiency at asystem level for: (1) servers, (2)desktops, and (3) laptops

Not applicable for onsemi operations

Report, pg 54
Anti-Competitive Behavior Litigation
TC-SC-520a.1

Total amount of monetary

In FY21, onsemi did not incur monetary losses as

losses as a result of legal

a result of legal proceedings associated with anti-

proceedings associated withcompetitive behavior regulations.

anti-competitive behavior

See onsemi 2022 SEC Form 10-K, pg 92

regulations (USD)

2021 Sustainability Report			Appendix |69

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Task Force on Climate-Related Financial Disclosures (TCFD) Framework
TCFD RECOMMENDEDDISCLOSURE

LOCATION OFDISCLOSURE

BRIEF DESCRIPTIONTCFD RECOMMENDEDDISCLOSURE

Governance

Governance

Disclose the organization’s governance around climate-related risks and opportunities.

b)a)Describe the board’s

Formal responsibility and oversight of matters related tooversight of climate-environmental, health and safety (EHS), ethics and corporate

related risks andsocial responsibility (CSR) issues at onsemi, including climate-opportunities.

related sustainability and climate change risk, lies with theboard Governance and Sustainability (GS) Committee as

LOCATION OFDISCLOSURE

Describe

At onsemi, climate-related issues and risks are managed atmanagement’s role

the highest level of the organization. We believe that havingin assessing andsustainability and climate-related initiatives integrated at every

managing climate-level of the company ensures success of our programs andrelated risks andgives us the ability to act nimbly at any level when needed.

opportunities.
Our CEO is at the top of our organizational structure and takes

stated in the GS committee charter. The GS committee

an active role in managing the company’s strategy. Our CEO

oversees issues related to corporate governance, enterprise

has primary responsibility for the operational leadership andrisk management including risk arising from the company’s

strategic direction of onsemi, including our climate-related

environmental, social and governance practices, as well
CDP Climate

as corporate social responsibility, sustainability initiatives,

Change,and ethics performance. The GS Committee holds at leastC1.1, C1.1a, C1.1b

two regular meetings per year and is comprised of three ormore members of the board. Additionally, the entire board of
directors’ reviews progress of energy and water consumption
as well as emissions reduction at least once a year. Progress ofthe company’s sustainability projects is reviewed by the board
on a quarterly basis and is communicated to the board by thechief marketing officer. In August of 2020, the GS committee
was supportive of the company working towards the creationof a climate strategy to guide the company’s activities for the
next 6-10 years.

BRIEF DESCRIPTION

strategies and initiatives. The CEO oversees and reviews thecompletion of set goals and progress of sustainability projects
as it relates to our corporate social responsibility program.
CDP Climate
Change,Our EVP of global operations and manufacturing is responsible

Questions C1.2,

for managing our operations including activities relating toC1.2a, C1.3,

our climate-related initiatives. With direct oversight over our

C1.3a

progression towards set consumption and emission reduction
goals, our EVP of Operations and Manufacturing can effectively
manage our operations in an environmentally responsible
manner. Our EVP of Operations and Manufacturing works
closely with our CMO as well as our Environmental, Healthand Safety team to ensure progress is being made towards
outlined goals and interventions are taking place where they
are needed.
Our CFO is responsible for managing the financial health ofthe organizations including our investments in climate-related
initiatives. Our CSR team meets with our CFO on a quarterly
basis to communicate developments in areas such as SASB and
GRI reporting measures.

2021 Sustainability Report			Appendix |70

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Task Force on Climate-Related Financial Disclosures (TCFD) Framework
TCFD RECOMMENDEDDISCLOSURE

LOCATION OFDISCLOSURE

BRIEF DESCRIPTION

Governanceb)

TCFD RECOMMENDED DISCLOSURE

LOCATION OFDISCLOSURE

BRIEF DESCRIPTION

Strategy

Describe

Our CMO leads our CSR team who works on the day-to-Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s

management’s role

day tasks associated with our environmental, social andbusinesses, strategy, and financial planning where such information is material.

in assessing andgovernance initiatives. The CMO is responsible for making

managing climate-recommendations to the board around climate-related issuesa)related risks andincluding trending CSR topics and how onsemi should beopportunities.

responding to these trends. Additionally, our CMO is directly
responsible for the success of our ESG programs including
CDP Climate

annual reporting, Global Giving, and our CSR targets.

Describe the climate-related

At onsemi, we have identified climate-related risks thatrisks and opportunities thehave the potential to affect our business continuity,organization has identified overstrategy, and financial planning. We have also

the short, medium and longidentified climate-related opportunities. One of the key

term.

risks we have identified is the increasing frequency
and magnitude of climate-driven natural disasters

Change,Questions C1.2,

Our Risk Committee (comprised of the CEO, CLO, CFO and EVP

C1.2a, C1.3,

of gloabl operations and manufacturing) is responsible for theC1.3a

identification, management, and mitigation of risks faced byand extreme weather events. This risk is driven by
the change in physical climate parameters of climatechange and is a specific (yet real) example. Using thisclimate risk, we can produce an estimate of related

onsemi. Our Enterprise Risk Management (ERM) program has

financial impact of climate change risk at one of ouridentified climate-related risks that the company will face overthe coming years. ERM findings are communicated to the Risk
Committee on a quarterly basis to ensure that this informationis communicated to the other C-Suite team and to our board of
directors.

manufacturing facilities, before taking any action.
CDP Climate
Change,Questions C2.3,
C2.3a, C2.4,
C2.4a

We see an opportunity in the shift in consumer
preferences towards sustainable technology. The
business of power electronics is fundamentally tied toenergy and efficiency, so the tracking of opportunities
related to climate change is infused in every partof our planning and operations. Any regulation or
event which makes energy more expensive will
increase demand for energy-efficient solutions. Justa few of the markets directly tied to climate change
are energy infrastructure, including solar boost &inverters systems and battery/grid interfaces, electricvehicles (EV) and EV charging and cloud computing.
We produce long-term products to enable every oneof those products and markets, but also support
energy efficiency in consumer electronics, appliances,
telecommunication networks and industrial systems.
We consider these products part of our sustainableproduct ecosystem.

2021 Sustainability Report			Appendix |71

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Task Force on Climate-Related Financial Disclosures (TCFD) Framework
TCFD RECOMMENDED DISCLOSURE

LOCATION OFDISCLOSURE

BRIEF DESCRIPTION

Strategyb)

TCFD RECOMMENDED DISCLOSURE

LOCATION OFDISCLOSURE

BRIEF DESCRIPTION

Strategy

Describe the impact of climate-

We estimate that one natural disaster/extreme weather

related risks and opportunities
on the organization’s

Describe the resilience of theonsemi has conducted an internal exercise similar

event affecting a single manufacturing facility will haveorganization’s strategy, taking

to climate-related scenario analysis which involved

an acute physical risk on our direct operations andinto consideration different

thinking through what possible futures exist andbusinesses, strategy, andhave the potential to cause over $5 million in financial

climate-related scenarios

identifying the potential risks, opportunities, andfinancial planning.

impact on our business. In this scenario, the climate-including a 2°C or lower

impacts that these potential future states couldchange related impact assumes a 100% production

scenario.

have on the company. Additionally, the ERM group at

outage, for 3 months, at one manufacturing site.
onsemi has over 20 manufacturing sites worldwide.
CDP Climate
Change,We shipped approximately 70 billion units through ourc)

CDP Climate
Change,Questions C3.2,
C3.2b

onsemi hosts an annual, off-site emerging risk scenario
planning session with a cross-functional group ofindividuals to evaluate specific emerging risk scenariosthat are considered new, ambiguous, unforeseen or

Questions C3.1,

global logistics network in 2021 and approximately

C3.1a, C3.3

64.3 billion units in 2020, resulting in a period-over-have assisted in framing some of the future scenarios

period increase of approximately 9%. In 2021, revenue

that could come to be, however they are not asfrom our sustainable products ecosystem amounted

comprehensive as a true climate-related scenario

to $5.011 billion. We anticipate that majority of ouranalysis. We understand the importance of conducting

products sold will fall into this sustainable productsuch scenario analysis and will be completing an

ecosystem as demand for energy-efficient solutions

analysis like this in the next twelve months.

slow to develop. These practices are informative andand energy infrastructure increases. We feel that $900
million is a fair estimate for the financial impact thisdemand will have on the company.

2021 Sustainability Report			Appendix |72

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Task Force on Climate-Related Financial Disclosures (TCFD) Framework
TCFD RECOMMENDED DISCLOSURE

LOCATION OFDISCLOSURE

BRIEF DESCRIPTIONTCFD RECOMMENDED DISCLOSURE

LOCATION OFDISCLOSURE

BRIEF DESCRIPTION

Risk Management

Metrics and Targets

Disclose how the organization identifies, assesses, and manages climate-related risks.

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunitiesa)

Describe the organization’s

CDP Climate

We have developed a framework to identify, evaluate,

processes for identifying andChange,prioritize and manage key risks and opportunities

assessing climate-related risks. Questions C1.2,

where such information is material.
a)the organization to assess

across different time horizons that can impact ourC1.2a, C2.1,

company’s ability to achieve strategic goals andC2.1a, C2.1b,

objectives systematically, consistently and effectively.

C2.2, C2.2a

We seek to identify critical risks by interviewing key

Disclose the metrics used byclimate-related risks andopportunities in line with its
process.

c)

CDP Climate

Risk response actions and commitments are tracked

processes for managing

Change,for completion on a periodic basis. The board ofclimate-related risks.

Questions C2.2,

directors’ reviews top risks and associated mitigation

C2.2a, C2.3,

measures with executive management on a quarterly

C2.3abasis.

Describe how processes for

CDP Climate

The process of identifying, assessing, and managing

identifying, assessing, andChange,climate-related risks falls within the ERM andmanaging climate-related

Question C2.2,

CSR Program. The mission of our enterprise risk

risks are integrated into theC2.2amanagement ERM program is to drive strategicorganization’s overall risk

capabilities that preserve and create value for ourmanagement.

company by embedding a risk-aware decision-making
culture across all functions. Ultimately, ERM is notconsidered a separate stand-alone activity but israther integrated into the fabric of how we operate
and included within the activities and functions
we engage in to run our business and successfullygas (GHG) emissions, energy usage, waste production

C7, C82021 onsemi
Reportand prioritized for action are embedded within the

Describe the organization’s

Change,Sections C5, C6, and water usage.

Sustainability

research via external sources. The risks identifiedb)

Our public climate-related metrics include greenhousestrategy and risk management

stakeholders within the company and conducting

company’s operating plan.

CDP Climateb)Disclose Score 1, Scope 2

In FY 2021, our GHG emissions were as follows:

and, if appropriate, Scope

Scope 1 – 2,485,870 MTCO₂e

3 greenhouse gas (GHG)

Scope 2 – 782,790 MTCO₂eemissions and the related risks.

Scope 3 – 617 MTCO2e (Business Travel only)
CDP Climate

As average temperatures rise, climate science finds

Change,that acute hazards such as heatwaves and floods

Sections C5, C6, are growing in frequency and severity and chronic
C7, C8hazards, such as drought and rising sea levels
continue to increase at alarming rates. These acute2021 onsemi

and chronic hazards have a significant impact on

Sustainability

human development and economic productivity,

Reportincluding supply chain disruptions, damage to owned
operations and endangerment, death or injury topeople in impacted communities. Our GHG emissions
contribute to average temperature rise and can havean impact on the frequency of these acute andchronic hazards.

achieve our goals and objectives.

2021 Sustainability Report			Appendix |73

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Task Force on Climate-Related Financial Disclosures (TCFD) Framework
TCFD RECOMMENDED DISCLOSURE

LOCATION OFDISCLOSURE

BRIEF DESCRIPTION

Metrics and Targetsc)

TCFD RECOMMENDED DISCLOSUREc)Describe the targets used by

CDP Climate

the organization to manage

Change,emissions by 2040. With this commitment, we have set

climate-related risks andQuestions C4.1,

the most ambitious goal among our competitors and will

opportunities and performance

C4.1b, C4.2,

surpass the Paris Agreement’s goal by a full decade. Our

against targets.

C4.2b, C4.3,

strategy is broken down into three pillars:

C4.3a, C4.3b,C4.3c
onsemi blog,
2040 Emissions
Goal for onsemi

In 2021, onsemi committed to achieving net-zero• Capitalize on efficiency - Every ton of carbon dioxide(CO₂) avoided is a ton we do not need to eliminate
or offset. Investments in facilities, processes, andequipment to increase energy efficiency can reduce
our greenhouse gas footprint by as much as 15%

LOCATION OFDISCLOSURE

BRIEF DESCRIPTION

Describe the targets used by

CDP Climate

the organization to manage

Change,that cannot be eliminated, we will purchaseclimate-related risks andQuestions C4.1,

certified carbon offsets equal to their amount.

C4.1b, C4.2,

Green-E and Gold Standard certified offsets are

C4.2b, C4.3,

the most credible and will be prioritized in ourC4.3a, C4.3b,

strategy. Science-based targets also require goals

opportunities and performanceagainst targets.

C4.3c• Offsets and influence - For nonelectricity emissions

for reducing emissions in the supply chain. We
will leverage our Responsible Business Allianceonsemi blog,
2040 Emissions

membership to engage suppliers on emissions
reduction.

Goal for onsemi

by 2040. We will also be focusing on our process

Our corporate social responsibility team works closely

gas usage as there is substantial opportunity forwith our environmental health and safety (EHS) andefficiency in this area.

facilities teams to ensure processes and frameworks• Renewable energy - To achieve net zero, companies
need to invest in renewable energy equal to theemissions associated with their energy consumption.

are in place to measure our progress against our net
zero goal. Our annual Sustainability Report will be a
key resource for tracking our progress.

Offsets cannot be used for electricity-related
emission in a net-zero model. We will transition toan emissions-free renewable energy portfolio toachieve this goal. We plan to use 50% renewableenergy by 2030 and 100% by 2040. We will engage
with energy providers to identify power purchaseagreements (PPAs) in locations where it is feasible torecoup investment costs in long-term agreements. To
assist in our shift to renewable energy, we joined theRenewable Energy Buyers Alliance to ensure a rapidtransition to a cleaner zero-carbon energy future.

2021 Sustainability Report			Appendix |74

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI STANDARDDISCLOSURE

GRI 2: General Disclosures 2021

2. Activities and Workers

1. The organization and its reporting practices

2-6

2-1

Organizational Details(a) Legal nameOur company name is ON Semiconductor Corporation (NASDAQ: ON).

Activities, value chain and other business relationships(a) Sector

Semiconductor(b) Value chain

See Revenue-Generating Activities in our 2022 SEC Form 10-

The company operates under the onsemi brand.

K, pg 6-10(b) Nature of ownership andonsemi is a publicly traded company incorporated under the laws of(c) Relevant business

See Completed and Pending Acquisitions and Divestitures inlegal form

the state of Delaware in 1992.

relationships

our 2022 SEC Form 10-K, pg 6(c) Location of headquarters

onsemi headquarters are located at 5005 East McDowell Road,(d) Significant Changes

See Completed and Pending Acquisitions and Divestitures in

Phoenix, Arizona

2-2(d) Countries of operation

See our global locations on our website.

Entities included in the

Sustainability reporting includes information about onsemi worldwide

organization’s sustainability

subsidiaries and joint ventures for which we have management

reportingcontrol. There is no difference between the entities included inour 2022 SEC Form 10-K, pg 6
2-7

Employees

See Our Employees section of our 2021 Sustainability Report,
pg 23

2-8

Workers who are not Employees

Total number of workers who are not employees: 850.
Majority of contract workers are working in factories asfinancial reporting and sustainability reporting.
2-3

CROSS REFERENCE OR ANSWER

operators (people processing and moving product) or

Reporting period, frequency andOur sustainability reporting is completed on an annual basis. This

technicians (people working on the processing equipment).

contact point

report covers 1 January 2021 to 31 December 2021. Our financial

Temporary workers are used to support short term increases inreporting is completed on a quarterly and annual bases. This report

production output.

was published on June 15, 2022. For questions about this report,
please contact the onsemi CSR team at social.responsbility@onsemi.
com.
2-4

Restatements of information

onsemi has not made any restatement in the reporting year.

2-5

External assurance

Information contained in the 2021 Sustainability report has beenassured by S&P TruCost Limited in accordance with AA 1000
assurance standard. Our external assurance statement can be foundin the appendix of the 2021 sustainability report. Scope 1, scope 2
and scope 3 greenhouse gas emissions have been externally assured
for the 2021 fiscal year (1 January 2021 to 31 December 2021).

2021 Sustainability Report			

3. Governance
2-9
2-10
2-11
2-12

Governance structure and

See Committees of the Board in our 2022 Proxy Statement, pg

composition

16.

Nomination and selection of the

See Charter of the Governance and Sustainability Committee

highest governance bodyand 2022 Proxy Statement, pg 13-14

Chair of the highest governance

Alan Campbell is a non-employee director and serves as Chairbodyof the Board.

Role of the highest governance

See Amended and Restated On Semiconductor Corporationbody in overseeing the

Corporate Governance Principles.

management of impacts

Appendix |75

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWER

2-13

Delegation of responsibility for

The Board delegates responsibility for managing the

2-16

Communication of critical

The Board of Directors and management of the Company,

managing impacts

Company’s impacts on the economy, environment and people

concerns

and the Chief Legal Officer in particular, keep an open line

largely to the Governance and Sustainability Committee, whichof communication for the smooth transmission of issues andhas been explicitly tasked with oversight of the Company’s

ideas related to the Company.

climate- and sustainability related initiatives, and the Human

Through its standing committees, the Board receives not

Capital and Compensation Committee, which has been

only information regarding critical concerns that impact the

explicitly tasked with oversight of the Company’s humanCompany but also informed, reasoned ways with which tocapital management. The Board receives updates on such

handle such concerns. Members of management are also

aspects of the Company at each of its quarterly meetings, andpresent at Board and committee meetings, and are capable

the Company’s internal CSR/ESG department team handles

of offering their input and/or insight regarding the Company

the day-to-day oversight and management of the ESG-type

as needed. When critical issues arise, management makes

impacts of the Company’s operations.

sure to keep members of the Board abreast of important

The CMO attends meetings with the Governance anddevelopments.

Sustainability Committee and provides reports to the Board on

For example, pursuant to the Securities Exchange Act of

ESG- and CSR-related initiatives. The CMO works directly with

1934, as amended, one of the responsibilities of the Human

the CSR/ESG department team on climate- and sustainability

Capital and Compensation Committee (as stated in its charter)

related initiatives through their supervisors. Today, the CEO,is to establish procedures for: (i) the receipt, retention and

CFO, CMO and other members of management report on thetreatment of complaints received by the Company regarding

Company’s impacts on the economy, environment and people

accounting, internal accounting controls or auditing matters;

to the Board at its meetings and in between meetings, asand (ii) the confidential, anonymous submission by employees

needed.
2-14

Role of the highest governance

The Board was not responsible for the review and approval ofbody in sustainability reporting

the reported information in previous years. However, in 2022,
the Board will be reviewing and approving the Company’s
Sustainability Report. Corporate Governance section of our2021 Sustainability Report, pg 44

2-15

Conflicts of interest

Since January 1, 2021, there have been no related party
transactions that are required to be reported as such under
SEC rules. See Charter of the Audit Committee and Related
Party Transactions in our 2022 Proxy Statement, pg 72.

of the Company of concerns regarding questionableaccounting or auditing matters.
2-17

Collective knowledge of the

The Governance and Sustainability Committee of the Board ishighest governance bodytasked with encouraging and facilitating directors’ continuing
education, including coordinating training sessions andinformative presentations for external parties for the directors
on various topics and aspects related to corporate governanceand other aspects of Board service. The company allows andencourages directors to select continuing director education
offerings to attend, so directors are empowered to further
develop their skillsets and attend offerings that will serve tocomplement their existing knowledge bases.

2021 Sustainability Report			Appendix |76

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWER

2-18

Evaluation of the performance

See Corporate Governance section of our 2021 Sustainability

2-27

Compliance with laws andTo the best of our knowledge, we have not received significantof this highest governance body

Report, pg 44

regulations

fines or non-monetary sanctions for non-compliance with laws

Remuneration policies

See Compensation Discussion and Analysis in our 2022 Proxy

2-19

Statement, pg 30-48.
2-20

Process to determine

See Processes and Procedures for Considering andremuneration

Determining Executive Compensation in our 2022 Proxy
Statement, pg 33-36.

2-21

Annual total compensation ratio(a) Annual total compensation

912:1 for all employees

ratio

86:1 for U.S.-based non-manufacturing employees

or regulations.
2-28

Membership associations

57
5. Stakeholder Engagement
2-29
2-30

Approach to stakeholder

See Stakeholder Engagement and Material Topics section ofengagement

our 2021 Sustainability Report, pg 41

Collective bargaining

Belgium: 100% (270)agreements

China Manufacturing: 99.8% (MFG) (2,413)
China Non-manufacturing: 100% (246)

See our 2022 Proxy Statement, pg 67(b) Change in the annual total

Czech Republic: 100% (2,372)

0:1

France: 100% (80)compensation ratio

Japan: 83% (1,310)
United States: 40.46% (Mt Top) (111)

4. Strategy, Policies and Practices
2-22

2-23

Statement on sustainable

See United Nations Sustainable Development Goals

development strategy

section of our 2021 Sustainability Report, pg 61

Policy commitments

See our Code of Business Conduct and our Human Rights
Policy. More information can be found in the Ethics andCompliance and Fair Treatment sections of our 2021
Sustainability Report, pg 49 and 52

2-24

Embedding policy commitments

See Public Policy section of our 2021 Sustainability Report, pg

Vietnam: 98% (2,037)
Overall: 26.24% (8,839)
GRI 201: Economic Performance
201-1

Direct economic value

See our 2022 SEC Form 10-K: Profit and Loss, pg 58 Results

generated and distributedof Operations, pg 32-34 Revenue and Segment Information, pg
Supplemental Disclosures, pg 100

See our Code of Business Conduct, sections Responsibility
and Accountability and Additional Responsibilities of Managers
and Supervisors, pg 3 and 4

2-25

Processes to remediate

See Ethics and Compliance webpage on our external website.

negative impacts
2-26

Mechanisms for seeking advice

See Ethics and Compliance Program section of our 2021

and raising concerns

Sustainability report, pg 49
Visit the onsemi helpline for more information.

2021 Sustainability Report			Appendix |77

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI STANDARD

201-2

Financial implications and otherWe are aware of potential opportunities and risks associated

GRI 202: Market Presencerisks and opportunities

with climate change and have integrated the process ofclimate change into our business operations and strategy
in several ways. Through our environmental conservation
programs, we focus on reducing our carbon footprint, andimproving the electrical and fuel energy efficiency of ourcompany’s operations. Our 113 products help contribute to

Ratio of standard entry level

These ratios are based on our manufacturing locations. These ratios

wage by gender compared toapply to the total workforce at these locations, regardless of gender.

local minimum wage

United States:
Minimum wage used – 7.25 USD
Ratio – 2.21:1
Shenzhen, China:energy-efficient products. We also encourage our customers

Minimum wage used – 28,600 RMB

to include these products in their designs. We educate andRatio – 1:1

encourage our employeesto live sustainably in their personalSuzhou, China:difference. Our ERM and business continuity programs work intandem. Identification and assessment of long-term climaterelated risks through the ERM program and implementationof continuity plans help mitigate short-term risks to ourorganization, affected communities, operations, employees,

201-4

CROSS REFERENCE OR ANSWER

climate-related reductions through our power management andlives. We advocate that even small actions can make a

201-3

202-1

DISCLOSURE

Minimum wage used – 29,640 RMB
Ratio - 0.96:1
Czech Republic:
Minimum wage used – 118,800 CZKRatio – 1.27:1

stakeholders and strategic business objectives from climate

Japan:

change and/or natural disaster incidents.

Minimum wage used – 1,722,240 JPY

Defined benefit plan obligations

To ensure we are strategic on our offerings, benefits are

Ratio – 1.53:1

and other retirement plans

handled at a regional level. See our website for regional

South Korea:

benefits summaries and 2022 SEC Form 10-K, pg 36 and 65

Minimum wage used – 21,869,760 KRW

Financial assistance received

See our 2022 SEC Form 10-K: U.S. federal R&D credit, pg 96

Ratio – 1:1

from government

NOL and tax credit carryforwards, pg 98

Malaysia:
Minimum wage used – 16,200 MYR
Ratio – 1:1
Philippines:
Minimum wage used – 131,342 PHP
Ratio – 1:1
Vietnam:
Minimum wage used – 62,428,080 VND
Ratio – 1.07:1

2021 Sustainability Report			Appendix |78

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI STANDARD

GRI 202: Market Presence
202-2

Proportion of senior

See Our Employees section of the 2021

management hired from theSustainability Report, pg 23

local community
GRI 203: Indirect Economic Impacts
203-1

Infrastructure investments andSignificant indirect economic

See our 2022 SEC Form 10-K Purchase Obligations, pg 89
See our 2022 SEC Form 10-K Purchase Obligations, pg 89

impacts

Proportion of spending on local

See Supply Chain section of our 2021 Sustainability Report, pg

The company’s anti-corruption policy has been communicatedpercentage of employees

to all employees globally (North America, EMEA, APAC)

that the organization’s

through the annual Code of Business Conduct rollout andanti-corruption policies

accompanying training. Our training completion rate in 2021

and procedures have been

was 100%.

(c) Total number andSelect suppliers, customers, and other businesspercentage of business

partners receive notice of our anticorruption policy

partners that the organization’s

through anti-corruption due diligenceanti-corruption policies

questionnaires and surveys.

suppliers

54

communicated to, broken down
by type of business partnerand region. Describe if the

GRI 205: Anti-Corruption
205-1(b) Total number andand procedures have been

GRI 204: Procurement Practices
204-1

CROSS REFERENCE OR ANSWER

communicated toservices supported
203-2

DISCLOSURE

organization’s anti-corruption

Operations assessed for risks

All factories are assessed for risks related to corruption

policies and procedures haverelated to corruption

through the RBA self-assessment questionnaire (SAQ),

been communicated to any

RBA internal audits or RBA VAP audits. In addition to ourother persons or organizations.

responsibilities as a full member of the RBA, we also conduct(d) Total number andAll 10 members (100%) of the board of directors completed our

percentage of governance body

Code of Business Conduct annual training, which includes amembers that have received

module on anticorruption.

internal anticorruption risk assessments, which factor in our
global operations, geographic footprint, customers andbusiness partners. Certain teams, sites and business partners

training on anticorruption

have heightened levels of risk based on location, functional roleand extent of interaction with government parties.
Communication and training about anti-corruption policies and procedures(a) Total number andAll 10 members (100%) of the board of directors

percentage of governance bodyreceived materials communicating the company’s

members that the organization’s

anti-corruption policy. Annual Code of Businessanti-corruption policies

Conduct training includes the topic of anticorruption

and procedures have been

in 2020.

205-3(e) Total number and

All employees globally (North America, EMEA, APAC) havepercentage of employees

received an annual Code of Business Conduct training whichthat have received training on

includes a module on anticorruption. Our training completion

anticorruption

rate in 2020 was 100%.

Confirmed incidents ofonsemi cannot disclose this information at thiscorruption and actions taken

time due to specific legal prohibition as this is
attorney-client privileged information.

communicated to2021 Sustainability Report			Appendix |79

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI 206: Anti-Competitive Behavior
206-1

Legal actions for anticompetitive In 2021, there were no legal actions pending or completed
behavior, anti-trust andduring the reporting period regarding anti-competitive behavior

monopoly practices

and violations of antitrust and monopoly legislation.

207-1

Approach to tax

See 2021 Global Tax Strategy, sections 1.1, 2.3, 2.3.1, and 3.1

207-2

Tax governance, control and risk See 2021 Global Tax Strategy, sections 2.3, 2.3.1 and 3.1.
management

GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWER

302-3

Energy intensity

Our energy intensity is based on our output earned. In 2021, we
had an energy intensity of 0.68 MWh per USD output earned.

302-4

Reduction of energy

onsemi did not track energy reductions in 2021. The company

consumptions

focused on ensuring it had the right metrics in place for its net
zero commitment.

302-5

For a copy of the report that contains the opinions on thefinancial statements and internal control over financial

Reductions in energy

Our products offer significant energy savings to our customers.

requirements of products andWhile we do not currently track the reductions of energy

servicesrequirements of our products, we hope to develop metrics
to track this information in the coming years. See Productreporting please refer to Page 68 in our 2020 SEC Form 10-K.
207-3

Stakeholder engagement andSee 2021 Global Tax Strategy, sections 2.3.3 and 3.1.

management of concerns

In addition, we also collect information from external

related to tax.

stakeholders through our investor relations group at investor@

Stewardship section of our 2021 Sustainability Report, pg 19
GRI 303: Water and Effluents
303-1

onsemi.com or through our CSR group at social.responsiblity@
onsemi.com.
207-4

Country by country reporting

303-3

Materials used by weight or

onsemi spends over $1 billion USD on various parts and raw

volumematerials as we manufacture at both internal and external sites.

See Water and Waste Management section of our 2021

shared resource

Sustainability Report, pg 16

Management of water

Effluent discharge meets or exceeds local regulations.

discharge-related impacts

We do not publicly disclose this information.

GRI 301: Materials
301-1

303-2

Interaction with water as a

Water withdrawal

Sustainability Report, pg 16
303-4

Water discharge

301-2

Recycled input materials used

onsemi does not use recycled input materials in our
manufacturing process.

301-3

Reclaimed products and theirSee Water and Waste Management section of our 2021

packaging materials

Sustainability Report, pg 16

Energy consumption within the

See Water and Waste Management section of our 2021

organization

Sustainability Report, pg 16

Energy consumption outside theonsemi does not track energy usage outside theorganization

organization.

onsemi is developing better strategies for tracking water
discharge across its operational footprint. We aim to have

We do not track or estimate the raw material used in key
manufacturing locations.

See Water and Waste Management section of our 2021

better metrics in the years to come.
303-5

Water consumption

Water consumption data currently is not captured, onsemi islooking into a database for water consumption.

GRI 302: Energy
302-1
302-2

2021 Sustainability Report			Appendix |80Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI 304: Biodiversity
304-1

Operated sites owned, leased,

onsemi does not have any operational site owned, leased,managed in or adjacent tomanaged in, or adjacent to, protected areas and areas of highprotected areas and areas of

biodiversity value outside protected areas.

high biodiversity value outside
Significant impact of activities,

None, onsemi sites are located in industrial zones or urban

products and services on

settings with minimal direct or indirect impacts on biodiversity.

biodiversity
304-3

Habitats protected or restored

onsemi has not participated in habitat protection or restoration.
This practice may become part of our carbon offsetting
activities in the future, but at this time we have nothing toreport.

304-4

DISCLOSURE

CROSS REFERENCE OR ANSWER

305-7

Nitrogen oxide, sulfur oxides

Air emissions do not exceed local regulation air emission permit

and other significant air

limits. Emissions concentrations are tracked at local facilities,

emissionsdata is not calculated globally.

GRI 306: Waste
306-1

protected areas
304-2

GRI STANDARD

IUCN red list species andTo the best of our knowledge, there are no IUCN Red List

national conservation list

species and national conservation list species with habitats inspecies with habitats in areas

areas affected by the operations of the organization.

306-2
306-3
306-4

Direct (scope 1) GHG emissions

Sustainability Report, pg 16

Management of significant

See Water and Waste Management section of our 2021

waste-related impacts

Sustainability Report, pg 16

Waste generated

See Water and Waste Management section of our 2021

Waste diverted from disposal

306-5

Waste directed to disposal

GRI 308: Suppler Environmental Assessment

See Emissions and Energy Consumptions section of our 2021

305-3
305-4

Energy indirect (scope 2) GHG

See Emissions and Energy Consumptions section of our 2021

emissionsSustainability Report, pg 14

Other indirect (scope 3) GHG

See Emissions and Energy Consumptions section of our 2021

emissionsSustainability Report, pg 14

GHG emissions intensity

Our GHG emissions intensity is based on output earned andSee Water and Waste Management section of our 2021
Sustainability Report, pg 16

New suppliers that were

New suppliers are not pre-screened using environmental

screened using environmental

criteria. However, all suppliers are provided our CSR

criteria

Commitment through the Supplier Handbook. Furthermore,
our top expenditure suppliers are required to sign our

Sustainability Report, pg 14
305-2

See Water and Waste Management section of our 2021
Sustainability Report, pg 16

GRI 305: Emissions
305-1

waste-related impacts

Sustainability Report, pg 16

308-1

affected by operations

Waste generation and significant See Water and Waste Management section of our 2021

Corporate Social Responsibility Statement of Conformance andcomplete a risk assessment with environmental criteria on abiennial basis.
308-2

Negative environmental impacts

We are not aware of any negative environmental impacts in thein the supply chain and actions

supply chain for 2021.

taken

includes our scope 1 and 2 emissions. We emit 1.25 MTCO2e

per USD output earned.
305-5

Reduction of GHG emissions

See Net-Zero Commitment section of our 2021 Sustainability
Report, pg 12

305-6

Emissions of ozone-depleting

onsemi does not emit ozone-depleting substances.

substances

2021 Sustainability Report			Appendix |81

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI 402: Labor/Management Relations
402-1

Minimum notice period

We provide advance notice or make changes to the contract

regarding operational changes

mid-term by mutual consent in accordance with collective

GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWER

403-6

Promotion of worker health

We offer programs focused on nutrition, weight loss, physicalfitness and the avoidance of unhealthy habits including
smoking, drinking and using drugs. Several of our sites offer
subsidized gym membership plans, access to fitness classes

bargaining agreements entered in and local requirements in the

and/or an on-site gym facility. See Employee Compensationdifferent countries where we operate.
Belgium: as per legal provisions
Czech Republic: as per legal provisions

and Benefits section of our 2021 Sustainability Report, pg 33
403-7

China: yes (manufacturing only)
Japan: yesSouth Korea: n/aPrevention and mitigation of

We follow strict standards to provide safe workplaces foroccupational heal and safety

employees around the world. Engineering controls such as

impacts directly linked byadequate exhaust/ventilation, fire protection systems,

business relations

interlocks, machine guarding, etc. are preferred based onpresent hazards. Additionally, personal protection equipment

U.S.: yes
Vietnam: no
Taiwan: no(PPE) is provided based on a risk analysis.
403-8

France: as per legal provisions
GRI 403: Occupational Health and Safety
403-1
403-2

Occupational health and safety

See Employee Health and Safety section of our 2021

management system

Sustainability Report, pg 36

Hazard identification, risk

See Employee Health and Safety section of our 2021

assessment and incident

Sustainability Report, pg 36

Workers covered by

See Employee Health and Safety section of our 2021

occupational health and safety

Sustainability Report, pg 36

management system
403-9Work-related injuries

injuries and 43 recordable work-related injuries for employees.
We had three recordable work-related injuries for nonemployees. For high-risk contractor work, a dedicated safety
supervisor must be present at all times. This safety supervisor

investigation
403-3

Occupational health services

must have line of sight to all high-risk jobs. The safety
Some of our sites have employed occupational health resource

supervisor serves as a safety advocate and helps ensure thatspecialists while others have inhouse clinics. We also contract

all safety rules are being followed.

doctors in certain locations who provide service to employees.
We use the European Union General Data Protection Regulation(GDRP) to protect privacy of all employees.
403-4

Worker participation,

In 2021, onsemi had two high-consequence work-related

403-10Work-related ill health

In 2021, onsemi recorded zero occurrences of work-related illhealth.

See Employee Health and Safety section of our 2021

consultation and communication Sustainability Report, pg 36
on occupational health andsafety403-5

Worker training on occupational

See Employee Health and Safety section of our 2021

health and safety

Sustainability Report, pg 36

2021 Sustainability Report			Appendix |82

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI 404: Training and Education
404-1
404-2

GRI STANDARDDISCLOSURE

GRI 408: Child Labor

Average hours of training per

In 2021, our average hours of training per employee was about

Operations and suppliers at

We work with suppliers in countries where the risk of violating

year per employee

3.5 hours of training per employee

408-1

significant risk for incidents oflabor and human standards is recognized as being higher. To

Programs for upgrading

See Learning and Development section of our 2021

child labor

actively address this, we require suppliers to complete self-

employee skills and transition

Sustainability Report, pg 31

assessment questionnaires, provide training and conduct
onsite verification. If any risk of violating the right to freedom

assistance
404-3

Percentage of employees

In 2021, all of our eligible employees received a performancereceiving regular performanceappraisalof association, existence of child labor or forced labor is
identified, we work closely and diligently with the suppliers
through corrective action plans. If the nonconformance is notand career development reviews

adequately addressed by the supplier in a timely fashion, we

GRI 405: Diversity and Equal Opportunity
405-1
405-2

may choose to terminate our contract with the supplier. For

Diversity of governance bodies

See Our Employees and Corporate Governance sections ofand employees

our 2021 sustainability Report, pg 23 & 44

Ratio of basic salary andonsemi does not publicly disclose this information.

remuneration or women to men

more information, see our Human Rights Policy.
GRI 409: Forced or Compulsory Labor
409-1

GRI 406: Non-Discrimination
406-1

Operations and suppliers at

We work with suppliers in countries where the risk of violating

significant risk for incidents oflabor and human standards is recognized as being higher. To

forced or compulsory labor

actively address this, we require suppliers to complete self-

Incidents of discrimination andonsemi cannot disclose this information at this time due toassessment questionnaires, provide training and conduct

actions taken

specific legal prohibition as this is attorney-client privileged

onsite verification. If any risk of violating the right to freedom

information.

of association, existence of child labor or forced labor is
identified, we work closely and diligently with the suppliers

GRI 407: Freedom of Association and Collective Bargaining
407-1

CROSS REFERENCE OR ANSWER

Operations and suppliers in

We work with suppliers in countries where the risk of violating

which the right to freedom

labor and human standards is recognized as being higher. To

of association and collective

actively address this, we require suppliers to complete self-bargaining may be at risk

assessment questionnaires, provide training and conduct

through corrective action plans. If the nonconformance is notadequately addressed by the supplier in a timely fashion, we
may choose to terminate our contract with the supplier. For
more information, see our Human Rights Policy.

onsite verification. If any risk of violating the right to freedom

GRI 410: Security Practicesof association, existence of child labor or forced labor is

410-1

Security personnel trained

We use both in-house and third-party organizations for

identified, we work closely and diligently with the suppliersin human rights policies or

security personnel. In 2021, approximately 96% of our security

through corrective action plans. If the nonconformance is notprocedures

personnel received training on our human rights policies.

adequately addressed by the supplier in a timely fashion, we
may choose to terminate our contract with the supplier. For
more information, see our Human Rights Policy.

2021 Sustainability Report			Appendix |83

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixGlobal Reporting Initiative (GRI) Index
GRI STANDARDDISCLOSURE

CROSS REFERENCE OR ANSWERGRI 411: Rights of Indigenous Peoples
411-1

GRI STANDARDDISCLOSURE

GRI 416: Customer Health and Safety

Incidents of violations involving

To the best of our knowledge, there have been no identified

Assessment of the health and100% of our products are covered by and assessed forrights of indigenous peoples

incidents of violations involving the rights of Indigenous

416-1

safety impacts of product andcompliance with company procedures for assessing product/

peoples during the reporting period.

service categories

service health and safety impacts.

GRI 413: Local Communities
413-1

413-2

We have several special products which are out of thisdeclaration. They are used for military and air force

Operations with local

All of our global sites are involved with community engagement

community engagement, impact

and development programs through our workplace giving

assessments and development

program and employee volunteerism. To learn more about our

Incidents of noncompliance

We are not aware of any non-compliance concerning the healthprograms

community engagement efforts, see our Giving Now webpage.

concerning health and safety

and safety impacts of our products and services.

Operations with significant

We do not have operations with significant actual and potential

impacts of products andactual and potential negative

negative impacts on local communities.

applications.
416-2

services
GRI 417: Marketing and Labelingimpacts on local communities
GRI 414: Supplier Social Assessment
414-1

417-1

New suppliers that were

New suppliers are not pre-screened against social criteria.

screened using social criteria

However, all suppliers are provided our Supplier Handbook

Requirements for product andPer labeling requirements of JEDEC standard JESD97,

service information and labelingall shipping labels show whether the products are underrestriction on hazardous substances (RoHS) compliant/Pb-free.
Our labeling also indicates information regarding hazardous

which references our CSR Commitment. Top suppliers bymaterial to comply with the China RoHS directive.

spend are required to sign our Corporate Social Responsibility
Statement of Conformance and complete a risk assessment
414-2

Incidents of noncomplianceTo the best of our knowledge, we have not received fines forwith social criteria on a biennial basis.

concerning product and service

non-compliance concerning product and service information

Negative social impacts in the

We work closely and diligently with our suppliers to ensure

information and labelingand labeling.

supply chain and actions taken

there are no negative social impacts from our supply chain. If

Incidents of noncomplianceTo the best of our knowledge, we are not aware of any non-negative social impacts are identified within our supply chain,concerning marketingcompliance concerning marketing communications.

we work with our suppliers to address those issues throughcommunications

corrective action plans.
GRI 415: Public Policy
415-1

CROSS REFERENCE OR ANSWERPolitical contributions

See Public Policy section of our 2021 Sustainability
Report, pg 57

417-2

417-3

GRI 418: Customer Privacy
418-1

Substantiated complaints

To the best of our knowledge, we are not aware of any

concerning breaches ofsubstantiated complaints of breaches of customer privacy or

customer privacy and losses oflosses of customer data

customer data

2021 Sustainability Report			Appendix |84

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixThird Party Assurance Statement

PRINCIPLE

S&P Global Sustainable1 Assurance
onsemi assurance statement: AA1000AS v3
S&P Global Sustainable1, a business of S&P Global
Inc. (hereafter, “Sustainable1”) was engaged byonsemi to provide assurance of the environmental
data held within its 2022 CDP Response and 2021
Sustainability Report.

Intended users
The intended users of this assurance statement are
the management and stakeholders of onsemi.

Responsibilities of onsemi and assurance
providerSCOPE

SOURCEUNIT

QUANTITY

GHG
Fuel and Process
Scope 1 Emissions

Metrictonnes 2,485,869.89
CO2e

GHG
Electricity
Scope 2

MetrictonnesCO2e782,789.62

GHG
Business Travel
Scope 3

MetrictonnesCO2e617.00The management of onsemi has sole responsibility
for the preparation and content of the Sustainability
Report and CDP Climate Change Response (hereafter,“CDP”). Sustainable1’s statement represents its
independent and balanced opinion on the content
and accuracy of the information and environmental
data held within.

Sustainable1 verified the environmental impacts, ascalculated by onsemi, within the above table.

Assurance standard•

Review of the processes by which onsemi defines
the sustainability issues that are relevant andmaterial to its operations and its stakeholders.

•Interviews with managers responsible forsustainability performance and data collection•

The reliability of specified environmental
performance information (greenhouse gas
emissions)

Assessment of the extent to which onsemi’ssustainability activities adheres to the Principles•

Sustainable1 used the Global Reporting Initiative(GRI) and the GHG Protocol to evaluate onsemi’s
performance information and adherence to the
Principles.

Review of processes and systems used to gather
and consolidate environmental data. The data
sources that Sustainable 1 reviewed includes
invoices, spreadsheets and other data points.

•

Verification of data accuracy for a selection ofsites, including an audit of conversion factors,
and calculations.

Sustainable1 undertook the assurance in accordancewith AA1000AS v3 (2020) Type 2 moderate-levelassurance, covering:✓✓

Evaluation of adherence to the AA1000AP (2018)
Principles of inclusivity, materiality,
responsiveness and impact (the Principles)

Scope and limitations
Sustainable1 was engaged to assure the data andclaims in onsemi’s 2021 external reporting,encompassing the period of 1 January 2021 – 31
December 2021. Sustainable1 was asked to assure
reporting for Scope 1, Scope 2 and Scope 3 category
6, business travel. onsemi took an operational
control approach.
Minor discrepancies were noticed during theverification process. For some sites, actual invoicevalues were missing for a couple of months.
Sustainable1 reviewed the estimated value
calculations and recommended onsemi to use actual
invoice values going forward. onsemi is working on
setting up a portal and tracking system for betteraccountability of its GHG inventory.

2021 Sustainability Report			Inclusivity:
participation of
stakeholders indeveloping andachievingaccountable andstrategic responses
to sustainability

As for external stakeholders, onsemi is constantly interacting with suppliers,
customers and investors to integrate their feedback into their sustainability
strategies. onsemi has been working closely with a customer to integrate its
feedback into their renewable energy strategy and transition to renewable energy
for manufacturing products.
The company has a Corporate Responsibility Manager to address questions related
to their sustainability strategy. Additionally, in response to the feedback received
from multiple customers, the company is exploring energy advisor(s) to help
improve data collection and identify ways in which it can reduce energy
consumption and transition to renewable energy.

Methodology
Sustainable1’s assurance activities included thefollowing:

COMMENTS
onsemi adopts a comprehensive approach to ensuring the active engagement of all
relevant internal and external stakeholders in achieving its sustainability
milestones. The company identifies both internal and external stakeholders, such as
employees, investors, customers, suppliers, and communities. It collects feedback
in a variety of ways including surveys, direct email questions, and employeequestions, and has dedicated teams to respond to different types of inquiries.
onsemi is setting up a framework for internal stakeholders to enable engagementwith on-site operations teams to identify initiatives that improve the company’senvironmental footprint.

Materiality:
determining
relevance andsignificance of anissue to anorganization andits stakeholders

Responsiveness:an organization’s
response to
stakeholder issues
that affect its
sustainability
performance,
which is realized
through decisions,actions, andperformance, as
well as interaction
with stakeholders

onsemi appointed a new CEO in December FY2020 and is in the process of anorganizational change, and therefore has not conducted a materiality assessment
since FY2019. The company is focusing on intelligent power and sensing
technologies that enable a more sustainable future. Even though a formalmateriality assessment was not conducted in FY2021, GHG emissions, renewableenergy and stakeholder management were identified as material issues impacting
the company. onsemi is in the process of developing a systematic approach for its
materiality assessments going forward and will report on it in its next annual
sustainability report.
Since the new Senior Director of Sustainability and ESG came on board, thecompany has intensified its focus on energy demand management, reducing energyload, and managing power usage intensity to effectively manage Scope 2 emissions.
onsemi conducts quarterly business reviews and team meetings with its executive
team to discuss important issues raised by stakeholders. It reports sustainability
progress quarterly to senior executives via the quarterly business reviews. It also
reports sustainability progress to the Governance and Sustainability committee of
the Board on a quarterly basis. onsemi has a standard response it sends out tocustomer inquiries, which outlines its strategies on topics such as emissions, net
zero goal, human rights, conflict minerals, RBA membership, diversity, equity andinclusion, etc.
onsemi has a separate process to manage any data related concerns raised bycustomers for their Scope 3 reporting purposes. Most of the responses are throughemail and the company also has a system to manage such requests. The investors
relations team also helps respond with inquiries raised by onsemi’s investor
community. onsemi is in the process of developing and implementing its customer
relationship management software, which will help run reports from the platform
and send them to individual customers.
In the future, the company aims to hold effective dialogue with suppliers in orderto manage Scope 3 emissions. In FY2021, onsemi sent out an email to Tier 1
suppliers to inform them about its sustainability goals. In response, the company
received feedback from suppliers regarding their own goals and strategies and how
they can fit into onsemi’s sustainability goals.

Appendix |85

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

AppendixThird Party Assurance Statement

DISCLAIMER
onsemi periodically monitors its progress vis-à-vis goals and targets for its climaterelated issues. Currently, it is working on the baseline and aims to commit to SBTiby the end of 2022. In August 2021, the company announced its intention to achieve
net-zero emissions across all scopes, and transition completely to renewable energy
consumption by 2040. It also set an interim target of achieving 50% renewableenergy consumption by 2030.

Impact:organizations
should monitor,
measure and be
accountable for
how their actions
impact broader
ecosystems

To manage Scope 1 emissions, the company engages with third parties to design
greenhouse gas (GHG) surveys at the process chamber levels for tools to identify
initiatives to reduce emissions. Additionally, to reduce Scope 2 emissions, onsemi isbuilding a roadmap for transitioning to renewable energy; looking into efficiency
projects and an enterprise approach to demand reduction and energy/ operational
efficiency. Previously, for Scope 3, the company collected data only for businesstravel; however, currently it is working with a vendor to identify and calculate
other applicable Scope 3 emissions. With the help of the vendor, onsemi will beable to identify the largest contributors to their Scope 3 emissions and the sourcesof such emissions, and work with suppliers to reduce upstream and downstream
emissions. onsemi is also looking at the impact of its sustainable products and how
they enable a transition to a sustainable world. It is also looking into breakthroughtechnology such as silicon carbide and its role in the transition to clean energy.
Throughout 2021, the company had a central reclamation and recycling centre in
Phoenix and any scrap that was collected from the manufacturing process was sent
to Phoenix. This helped to reduce waste generated during the manufacturing
process and, in 2021 alone, approximately 614,000 kg of scrap materials and 810 kgof precious metals were processed, sorted and sold for reuse.

Findings, conclusions and recommendations
The Principles:
Nothing came to Sustainable1’s attention to suggestthat onsemi’s CDP Response does not adhere to theAA1000 Principles.
Data reliability:
onsemi has implemented rigorous processes tocollect and aggregate global energy consumption and
GHG emissions. Upon evaluating this system,
Sustainable1 found that data was accurate overall,
and any minor corrections were made as necessary.

and experience to conduct an assurance to theAA1000 standard.
Sustainable1 has conducted this assurance
independently and impartially and in compliancewith S&P Global’s policies and procedures, including
its Code of Business Ethics that provide a framework
relating to ethical conduct, conflict of interest andcompliance with law.

S&P Global Sustainable1, a business of S&P
Global Inc.
London, May 2022

This content (including any information, data, analyses, opinions, ratings, scores, and other statements)(“Content”) has been prepared solely for information purposes and is owned by or licensed to S&P Global Inc.
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Copyright© 2022 S&P Global Inc. All rights reserved.

Assurance provider
Sustainable1 has been researching, standardizing andvalidating corporate environmental performancedata since 2000. Sustainable1’s research team has
the relevant professional and technical competencies

2021 Sustainability Report			Steven Bullock
Managing Director, Global Headof ESG Innovation and Solutions

Appendix |86

Table of Contents

Introduction

Our Business

Protecting our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Report Revision History
VERSIONDESCRIPTION OF REVISION AND REASONEFFECTIVE DATE

O

2021 Sustainability Report Document Initial Release

15 June 2022

A

Revised size of document to optimize user experience

16 June 2022

B

Revised 2020 Scope 1 emission numbers to reflect previously reported figures.

28 June 2022

Adjusting from 2,171,110 MTCO₂e to 2,173,451 MTCO₂e (pages 14 and 67).
C

Revised Hazardous Waste Recycled figure in Triple Bottom Line Performance

15 March 2023

Summary to reflect correct recycling percentage. The previously reported 75%
figure was incorrect. The corrected figure is 42%.

2021 Sustainability Report			Appendix |872021 Sustainability Report
onsemi
Investor Relations and Corporate Development
5005 E McDowell Rd
Phoenix, Arizona 85008
investor@onsemi.com

www.onsemi.com