2021 Sustainability Report Executive Summary

Creating a better
tomorrow. Today.

Table of Contents

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Our Business

Protecting Our Planet
and Environment

Ensuring Social
Responsibility

Committing to a
Responsible Business

Appendix

03 Executive Summary

06 Emissions and Energy Consumption

11

Diversity, Equity and Inclusion

15 Corporate Governance

19 Third Party Assurance

03 About onsemi

08 Water and Waste Management

13

Employee Health and Safety

05 Net-Zero Commitment

10 Product Stewardship

14

Impacting our Community

16 Fair Treatment
17 Supply Chain

Statement

through Giving

2021 Sustainability Report			Protecting Our PlanetTableand Environmentof Contents |2

Table of Contents

About onsemi

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Executive Summary
This executive summary serves as a condensed impact report of our environmental, social andgovernance initiatives at onsemi. To view our full report, please see our 2021 Sustainability Report.

Founded in

1999

Headquartered in
Phoenix, Arizona$6.7B
revenue in 2021

ON

Publicly traded(Nasdaq: ON)

Hassane El-Khoury
President and CEO

onsemi is driving disruptive innovations to help build aAdvanced Solutions Group (ASG)

better future. With a focus on automotive and industrial

ASG designs and develops analog, mixed-signal, advanced

end-markets, the company is accelerating change inlogic, application-specific standard products (ASSP) andmegatrends such as vehicle electrification and safety,

application-specific integrated circuits (ASIC), radio frequency

sustainable energy grids, industrial automation and 5G(RF) and integrated power solutions for a broad base of end-

and cloud power. With a highly differentiated and innovative

users in different end-markets. If you store data in the cloud,product portfolio, onsemi creates intelligent power andonsemi components from ASG ensure the data center housing

sensing technologies that solve the world’s most complex

your information is running efficiently and effectively, allowing

challenges and leads the way in creating a safer, cleaner,

you access to your information from anywhere at any time withand smarter world.

a click of a button.

As a leading semiconductor manufacturer for more thanIntelligent Sensing Group (ISG)

80,000 different parts and a global supply chain, onsemi

ISG designs and develops complementary metaloxide

serves tens of thousands of customers across multiple

semiconductor (CMOS) image sensors, image signal

female board of directors

markets. Some of our key markets include automotive

processors, single photon detectors, including silicon25%

solutions, industrial solutions, 5G and cloud power,

photomultiplier (SiPM) and single photon avalanche diodes

Internet of Things (IoT), medical solutions and aerospace(SPAD) arrays, as well as actuator drivers for autofocus andand defense.

image stabilization for a broad base of end-users in the$5.011B

sustainable product revenue

33,690employees

45%
female25.7%

minority workforce (U.S. only)

80,000different parts

About onsemi

20%

female executive leadership

22 manufacturing sites worldwide,
producing tens of billions of units
per year, ~80,000 different parts

different end-markets. onsemi components from ISG provide
We are organized into three operating and reportable

improved manufacturing efficiency by using cameras in quality

segments: Power Solutions Group (PSG), Advanced

inspections to detect defective parts early in the process,Solutions Group (ASG) and Intelligent Sensing Group (ISG).

ensuring end-product quality and reliability.

Power Solutions Group (PSG)
PSG offers a wide array of analog, discrete, module and61%

of our 2021 revenue wasfrom auto and industrial

The automotive and industrial end
markets are growing ~2x fasterthan other end markets and makeintegrated semiconductor products that perform multiple

up ~61% of our 2021 revenue

amplification and voltage regulation functions. If you drive

application functions, including power switching, power
conversion, signal conditioning, circuit protection, signal
an electric vehicle, onsemi components from PSG can help
you go many more miles on a single charge.

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Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

2021 Financial Performance
Our disciplined execution of transformation initiatives inadvanced driver-assistance system (ADAS), alternative energy

2021 resulted in record financial performance. Revenue

and industrial automation. We continue to expand gross margins

for 2021 grew 28.3%. Operating income and free cash flow

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

increased six times faster than revenue as we focused ourwhile ramping new products, rationalizing our manufacturing

portfolio on secular megatrends of electric vehicles,

footprint and improving our overall cost structure.

Revenue by Market (percentage)

Revenue Type by Channel (percentage)

Revenue by Region1 (percentage)

DirectDistributor

DirectDistributor

Revenue by Technology (percentage)

42

Intelligent Power

38

17

46

41

17

Intelligent Sensing

Other

1. Represents sales billed from the respective country or region.

2021 Financial Performance (percentage)
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 10).

2021 Sustainability Report			Our Business |4

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Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

We are implementing an aggressive strategy to reach this goal.
Net-Zero Commitment
In 2021, onsemi announced our goal to be net-zero by 2040.
This commitment will guide how we operate our business overthe coming years and is essential to ensuring we operate in asocially thoughtful and environmentally responsible manner.
Our net-zero 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

Our strategy is categorized into three pillars:

Capitalize on Efficiencies•

Further investments in facilities, processes and equipment to increase•

Explore opportunities to mitigate process gas usage•

Identify areas where improved efficiencies can reduce raw material,

energy efficiency

fuel and resource usage

in this year.
Our emissions data is verified by a third-party company,
Trucost. Trucost, a subsidiary of S&P Global, is a leader incarbon and environmental data and risk analysis. Our fullTransition to Renewable Energy

assurance statement can be found in the appendix of•Transition to an emissions-free renewable energy portfolio

this report.

•

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

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

Purchase Offsets and Influence•

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

Net-Zeroby 20402021 Sustainability Report			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

Our Business |5

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Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Emissions and Energy Consumption

Scope 1 Emissions

We are dedicated to reducing our energy consumption and overall carbon footprint in alignment

Scope 1 emissions are direct emissions

with our net-zero by 2040 goal. Climate change is undeniable, and the main driver of climate

from company-owned and controlledchange is human-based activities. Increasing energy demands and greenhouse gas (GHG)

resources. Some examples of Scopeemissions are driving a global mandate for energy efficiency and reduced emissions, including

1 emissions include emissions fromthe replacement of fossil fuels by clean alternative energy sources.

fuels used in heating or furnaces andCommitting to a Responsible Business

Appendix

Total Scope 1 GHG Emissions (metric tons of CO2e)

process emissions from chemicals
Our comprehensive portfolio of intelligent power and sensing technologies is designed toused in industrial processes.

minimize power consumption and improve energy efficiency. Examples of these products
include solar inverters, efficient motors for fans, HVAC units, power tools, power conversion

onsemi directly emits GHG emissions(as a part of the shift toward renewable energy), electric cars and products that assist with thefrom fabrication and assemblytransition from coal to renewables.

and test locations. We work to

Scope 1 Process Gases by Type (metric tons of CO2e)eliminate Scope 1 emissions by:
At onsemi, we take climate change seriously. For years, we have taken steps to reduce• Installing efficient

GHG emissions and energy consumption throughout the company’s operational footprint.

manufacturing technologies.

We measure and report Scope 1 and 2 emissions at our manufacturing sites along with

• Exploring eliminating

select categories of Scope 3 emissions. To keep our carbon accounting cohesive across allnonessential fluorinated gases

operational activities, onsemi reports all emissions on a carbon dioxide equivalentand using alternative gases.

basis (CO2e).

• 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.

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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.

Total Energy Consumption (megawatt hours)• Exploring investments in renewableenergy projects around the globe.

Energy Consumption

Total Scope 2 GHG Emissions (metric tons of CO2e)

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

Scope 3 Emissions
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.

As part of our strategy to achieve net-zero by 2040,
we will investigate and invest in renewable and clean
energy options in the future. We are exploring options
to help us transition to 50% renewables by 2030 and
100% renewables by 2040.

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

We will work to reduce our Scope 3 emissions by:• 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 (MWh)Protecting Our Planet and Environment |7

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Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Water and Waste Management
Water Management
Our organization strives for transparency with stakeholders, displaying deliberatestewardship of water as the important resource it is. Following this, we firmly believethat reduction in water usage enables the shared usage of water resources andreduces cost within process methods; therefore, we continue to seek out water
recycling, reuse and reduce options. All of our wastewater is treated before it isdischarged, and our effluent discharge meets or exceeds local regulations.
In 2021, 1,398 megaliters of water were withdrawn from high or extremely high waterstressed regions, out of the total 13,599 megaliters of water withdrawn. We arecommitted to recycling water and reducing our water consumption. As part of ourcommitment to water-use efficiency, 5,779 megaliters of water were recycled in 2021.
That water recycled is the equivalent of approximately 2,300 Olympic-size swimming
pools. In 2021, we reduced water withdrawal by 4.9% compared to the previous year.

.

WATER USAGE (MEGALITERS)

2021

2020

Total Water Withdrawal

13,59914,332

Surface Water00Groundwater

885

1,031

Seawater00Third Party Water

12,714

13,301

Total Water Recycled

5,779

6,374

Total Water Recycled (%)

42%

44%

Extremely High1

271

275

High2

1,127

1,081

4.9%

1. According to the World
Resource Institute’s Aqueduct
Water Risk Atlas, extremely

Reduced Water Withdrawal
compared to previous year

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

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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

Total Waste Directed to Disposal (metric tons)

example, our sites have implemented
projects that expand the lifetime of¹cleaning baths, modified processes
to reduce the volume of chemicals
per wafer or installed mini pumps for
optimal application of chemicals.

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

In 2021, the total amount of hazardousand 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 associatedWaste Diversion Rate (percentage)

with on-site wastewater treatment.

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Appendix

Sustainable Products

Product Stewardshiponsemi is focused on innovation to create

Ensuring Social Responsibility• Enhancing the automotive mobility

In 2021, onsemi had over $5.011 billion in sustainabletransition to renewable power, such as our products

intelligent power and sensing technologies

experience with our intelligent sensing

product revenue. onsemi’s focus on intelligent powerin solar inverters or EV charging stations, or enables

that solve the most challenging customer

technologies with imaging and depth sensing

and sensing technologies and newly implemented

reduction of waste and scrap in manufacturing. The

problems. Our product development efforts

that make advanced vehicle safety andcorporate strategy resulted in a redefinition of“Profit” category refers to any product that helps aare directed towards the following:

automated driving systems possible.

our sustainable product offering. Our definition ofcompany add to its economic benefit in society, such

“sustainable product revenue” is revenue from products

as by reducing supply chain risks or improving processthat fall under the intelligent power and sensing

efficiency from products that make factories smarter.

• Powering the electrification of the automotive• Enabling automation and data exchange

industry with our intelligent power technologies(Industry 4.0) with our intelligent sensing

umbrella and products that contribute to the triplethat allow for lighter and longer-range electric

technologies for smarter factories and buildings.

bottom line – People, Planet, Profit. The “People”

As a result of this redefinition and shift in focus, wecategory refers to any product that improves lives, such

saw a significant increase in sustainable productas our products in medical devices or products thatrevenue from 2020 to 2021. We consider thesesolutions to optimize power consumption

improve car safety. The “Planet” category refers to any

products a key part of our sustainable ecosystemin the cloud and telecom infrastructure.

product that helps to reduce emissions or aids in thewhich includes the following categories:

vehicles and enable efficient fast-charging systems.
• Delivering high efficiency intelligent power• Propelling the sustainable energy evolution with
our intelligent power technologies for the highest
efficiency solar strings, industrial power andstorage systems.

2021 Sustainability Report			EV Charging

Factory Automation

5G Infrastructure

ADAS Lidar

Vehicle Electrification

MedicalCloud PowerMachine Vision

Energy Infrastructure

Advanced Safety

Automotive Lighting

Protecting Our Planet and Environment |10

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Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Diversity, Equity and Inclusion
We believe our company’s vision, mission, values and culture

onsemi has long remained committed to diversity, equity andafford opportunities for everyone to make a difference

inclusion (DEI). We are strongest when drawing on the diversein building a successful global business. Core to ourexperiences, knowledge, culture and backgrounds from all

philosophy is embracing diversity, implementing equitable

employees. We celebrate differences, promote equity andprocesses and practices and building a culture of inclusion

maintain an inclusive workplace for our employees. DEI helps

across the organization. Diversity of thinking encourages

us continue to encourage the creativity and innovation necessary

the creativity and innovation necessary for us to maintainto maintain a competitive advantage in the global marketplace.

a competitive advantage in the global marketplace.
onsemi strives to build a diverse talent pipeline. We understandOur community of employees are located around the world withthis means more than just attracting a diverse workforce but

major facilities in the U.S., Belgium, Canada, Germany, Ireland,also developing all employees. We train leadership on how

Slovakia, Czech Republic, Japan, South Korea, China, Malaysia,

to best mitigate unconscious bias during the interview andVietnam, Philippines, Taiwan and India. As of December 2021,

hiring process, as well as provide general unconscious bias

we had approximately 33,690 employees operating globally.

and DEI learning for all employees around the globe.

U.S. Workforce by Ethnicity

2021 Sustainability Report			Worldwide Workforce by Region

Worldwide Workforce by GenderWorldwide Management by Gender

Ensuring Social Responsibility |11

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Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

Diverse Hiring Practices

Workforce Equity

We engage with multiple organizations toonsemi understands that it is imperative to infuse

attract a more diverse workforce. Some ofequity as the integrator for seeking a diverse andour partner organizations include:

inclusive workplace. Equity is not equality. Instead,
it is creating access for all to have the same

Historically Black Colleges and Universities

opportunities to develop skills consistent with our(HBCUs) to provide scholarships andbusiness objectives and core values. This is madeinternship opportunities.

possible by tailoring processes and practices to
employee needs and redesigning talent systems.

SkillBridge, a Department of Defense
program for servicemembers transitioning
into the civilian workforce.
Year Up, a program to ensure equitable
access for young adults taking a
nontraditional higher education path to gain
work experience.

Workforce Inclusion
As a global employer with approximately 33,690
individuals in roles from corporate designers andsupport functions to manufacturing line workers inNorth America, Europe, Asia and Japan, it is vitalthat we engage and address the local needs for all
our employees.

EMEA, Embedded partnerships withlocal universities: onsemi consults local
universities on curriculums to prepare
graduates for the semiconductor industry.
India, onsemi Alumni connections: Current
onsemi employees partner with their almamater to organize pre-placement talks andshowcase onsemi technologies to attract top
engineering school talent.

2021 Sustainability Report			ProtectingEnsuring
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Committing to a Responsible Business

Appendix

Employee Health and Safety
Our health and safety programs are based on our

Our non-manufacturing sites follow our internal

company’s Environmental Health and Safety

procedures and local regulations related to health and(EHS) Policy and are valued at each of our sites. We

safety. Additionally, our manufacturing sites conform toprotect people and minimize our environmental impact

ISO 14001 and ISO 45001 specifications. 100% of

through efforts to prevent injury, illness and pollution.

our manufacturing sites, about 28,130 employees, areEstablishing a healthy and safe environment allows

covered by ISO 14001 and 95% of our manufacturing sites,

our employees to come to work each day without fear

about 27,981 employees, are covered by ISO 45001. For

of injury or illness and is vital to the quality of life ofa list of all our manufacturing sites with ISO 14001 andour employees and the success of our business.

ISO 45001 visit our Quality and Reliability website.

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 |13

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Committing to a Responsible Business

Appendix

Impacting Our Community through Giving
Today’s world requires a new mindset and approach

The company strategically reserved $3M in 2021 to support future

to address and support the ongoing challenges facing

giving opportunities. At onsemi, we believe that how we work andpeople and communities every day. With the unveiling of

how we give back makes a meaningful difference and while we

our new global giving program, called “Giving Now,” wework together for a better tomorrow, it is the giving efforts of theenabled a renewed focus at onsemi on the positive social

new onsemi Giving Now program that will make an impact today!

impacts of our giving efforts guided by the passion of ouremployees and onsemi’s commitment to promoting Science,
Technology, Engineering, Art and Mathematics (STEAM)
education, amplifying employees’ time and donations andresponding to natural disasters and humanitarian crises.
The Giving Now program will drive positivity forward bycreating meaningful change for our planet and every
community that we live and work in around the globe. The
Giving Now program prioritizes giving in three simple ways:

1

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

$3M

reserved in 2021 to support
future giving activities

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.

2021 Sustainability Report			Ensuring Social Responsibility |14

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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

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

Human Capital and Compensation

independent directors except Hassane El-Khoury, who also
serves as the president and chief executive officer of onsemi.

Gregory L. Waters

Male

61

2

Executive, Human Capital and Compensation

Christine Y. Yan

Female56

4

Human Capital and Compensation (Chair)

We have a board member age limit of 75 years old.

Qualifications Key:

2021 Sustainability Report			

Semiconductor

ESG

Compliance

Government Relations

Public Company Management

Manufacturing

Mergers andAcquisition

Sustainability/Climate

International

Finance

MarketingInformation Security

Protecting
Committing
Our
to Planeta Responsible
and Environment
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Committing to a Responsible Business

AppendixCommittee Details

Board Oversight of ESG

Our board of directors has established four standing committees:

The GS Committee has the responsibility of overseeing mattersrelated to ESG, unless there is a specific matter connected to ESG
initiatives that is assigned to another committee of the Board. For
example, the HCC Committee has the responsibility of overseeing

Audit Committee

the company’s policies and strategies in respect of human capital,
which include those regarding diversity, equity and inclusion. Both the
GS Committee and the HCC Committee play a role in the company’s

Governance and Sustainability (GS) Committee

Human Capital and Compensation (HCC) Committee

Executive Committee

management and oversight of diversity, equity and inclusion.

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

Each committee is tasked with overseeing various aspects of ourcompany and carrying out the responsibilities specified in its
charter. To see a copy of the formal written charter pertaining toeach standing committee, please visit the Investor Relations
section of our website.

As a reflection of the board’s commitment to

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

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Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Fair Treatment

Prevention of Slavery and Human Trafficking

Prevention of Child Labor

At onsemi, we are committed to preserving and promoting

To prevent slavery and human trafficking, we implemented

Our practice on the use of child and young labor is based upon

the fundamental rights of others and ensuring everyone is

our Slavery and Human Trafficking Policy Statement,

our global minimum employment age policy. The purpose of thisawarded fair treatment. Our company Code of Business

which ensures we are aware of and have a zero tolerance

policy is to define and ensure that sufficient measures and controls

Conduct as well as the Responsible Business Alliancetoward human rights violations. We have implemented policies,

are in place to verify the minimum age of individuals working atcode covers human rights in several areas, ensuring we haveprocedures and management systems to ensure that all work

our company. As a rule, we only employ individuals who are at

a comprehensive stance on human rights and fair treatment

at our company is voluntary and that workers are legallyleast 18 years of age by the first day of employment.

that applies to all onsemi employees, joint ventures, major

entitled to leave the company without penalty. Our company

suppliers, select service providers and contractors, andalso ensures that workers are not required to hand-over

The only exception to this rule is in China, where the minimum

products and services.

government issued identification and original work permits toage for employment is 16 years old. To confirm candidates forour company or any of our labor agents.

employment meet the minimum age requirement, members of

We have several sites with collective bargaining agreements,

our human resources department perform due diligence to makeand we respect our workers freedom of association with theseWe train our human resources staff and labor agents on thesure we are complying with federal, state, regional and localgroups. To ensure our approaches are regularly updated, we

company’s practices related to anti-human trafficking and conduct

requirements. The global minimum age policy also describes theengage all relevant groups including, but not limited to, corporate

on-site verification to ensure compliance. Incidents of slavery andprocess to be followed and protection afforded to discoveredsocial responsibility, environmental, health and safety, human

human trafficking are also verified in our supply chain using riskchild laborers. We apply the same minimum age requirement forresources, legal, global security and supply chain in our review

assessments and site visits. Our employees and other stakeholders

employment at our supplier companies and labor agencies. We

and due diligence process. Every individual and department at

are encouraged to report any concerns they may have on human

work to ensure that our suppliers have the necessary policies,

our company is responsible for understanding and implementing

trafficking through the global trafficking hotline at 1-844-888-FREE

procedures, measures and controls in place through risk

the fundamental rights of others.

or by emailing help@befree.org.

assessments and on-site verification to avoid incidents of child

Human Rights

Appendixlabor within our supply chain.

Our formalized Human Rights Policy demonstrates ourcommitment to preserving, protecting and promoting thefundamental rights of others as reflected in the RBA Code of

Conduct, Universal Declaration of Human Rights, United
Nations (UN) Guiding Principles on Business and Human
Rights and UN Global Compact to which we are a signatory.
Our commitment to international human rights standards and1-844-888-FREE stakeholders are encouraged to report any concerns.

is our global trafficking hotline where employees and otherlocal laws are rooted in our core values and reinforced throughour Code of Business Conduct and other company policies.

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Committing to a Responsible Business

Appendix

Supply Chain

Our Suppliers

Conflict Minerals

At onsemi, we are committed to ensuring the highest

Our supply chain has a multifaceted supply structure of

As a purchaser of products containing conflict minerals thatstandards of social responsibility in all regions in which ourdirect materials suppliers, foundry and subcontractor

include tantalum, tin, tungsten, gold and cobalt from suppliers

company is located. We insist that our suppliers provide

providers, indirect material suppliers and professional

for use in our manufacturing process and products, we

safe working conditions, treat workers with dignity andservice providers deployed across a global sourcing

continue to be concerned about the reports of violence andrespect, prohibit human trafficking and slavery (including

and procurement organization. In 2021, we worked withhuman rights violations resulting from the sourcing of suchthe procurement of commercial sex acts and the use of

9,500 suppliers and service providers in North America,

metals from the Democratic Republic of the Congo (DRC)

forced or child labor), promote ethical behavior, and use

Asia Pacific, Europe and the Middle East. Of thoseand adjoining countries.

environmentally responsible manufacturing processes

suppliers, approximately 7,000 were production-related.
As an active member of the Responsible Minerals Initiativeand follow principles like those in our Code of BusinessConduct. As outlined in our Supplier Handbook,the supplier must conform to all environmental laws, allapplicable laws and regulations, behave ethically, conformto all social responsibility and conflict mineral requirementsthat are required by onsemi’s Corporate Social

Responsibility (CSR) Statement of Commitment,
and provide any requested certifications and cascade
all applicable requirements through their supply chain.

At onsemi, we are committed to ensuring the highest
standards of social responsibility in all regionsin which our company is located.

2021 Sustainability Report			There are a total of 96 suppliers that constitutes 85% of(RMI), we engage in reasonable and responsible due

our direct materials spend in 2021. We are currently in the

diligence with our suppliers and other third parties in our

process of further classifying these critical suppliers as highsupply chain in a manner consistent with the Organisation

or low risk, considering various factors such as procurement
amount, product criticality, single or dual source, andfor Economic Co-operation and Development(OECD) Due Diligence Guidance for Responsible Supply

business relationships with onsemi from both Supplier

Chains of Minerals from Conflict-Affected and High-Risk

Risk Management and Supplier Relationship Management

Areas (CAHRAs).

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

Committing to a Responsible Business |18

Table of Contents

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Committing to a Responsible Business

Appendix

We require our suppliers to engage in due diligence to analyze
their sources and to complete the RMI Conflict Minerals
REPORTING YEARCONFORMANTACTIVENON-CONFORMANTNOT ELIGIBLE

TOTAL

2021

98%

1.0%

1%

0%

100%

smelters, and we achieved this target in 2018 to 2019 and

2020

99.6%

0.4%

0%

0%

100%

continue to sustain the goal of 100% smelter conformance. If

2019

100%

0%

0%

0%

100%

2018

100%

0%

0%

0%

100%

2021 REPORTING YEARCONFORMANTACTIVENON-CONFORMANTNOT ELIGIBLE

TOTAL SMELTER% CONFORMANT

Gold

105

0

2

0

107

98%

Tantalum

25

0

0

0

25

100%

Tin

50

2

0

0

52

96%

Members of our conflict minerals team continue to actively

Tungsten

24

0

0

0

24

100%

participate in RMI workgroups, including due diligence practice

Total

204

2

2

0

208

98%

Overall % Conformant

98%

1%

1%

0

Reporting Template (CMRT). In 2015, we achieved our road tozero by identifying all utilized smelters. Each year, we target 100%
responsible minerals assurance process (RMAP) conformant

we become aware that our supply chain includes uncertified
minerals sourced from a conflict region, we act promptly to review
the circumstances and remedy the situation as appropriate.
onsemi responds and completes 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 100% conformant, while gold refiners and tin
smelters were 98% and 96% conformant, respectively.

team and minerals reporting team. Please see our latest SEC
Form SD, Conflict Minerals Sourcing Policy, as well as latest
company-level CMRT for more information. For any other conflictminerals inquiry, please send to continuity@onsemi.com.

2021 Sustainability Report			Committing to a Responsible Business |19

Table of Contents

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 |20

Table of Contents

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

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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 |21

2021 Sustainability Report Executive Summary
onsemi
Investor Relations and Corporate Development
5005 E McDowell Rd
Phoenix, Arizona 85008
investor@onsemi.com

www.onsemi.com