Onward: for
People and Planet
2022 Task Force on Climate-Related
Financial Disclosures (TCFD) Framework

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

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

LOCATION OFDISCLOSURE

BRIEF DESCRIPTIONTCFD RECOMMENDEDDISCLOSURE

LOCATION OFDISCLOSURE

Governance

BRIEF DESCRIPTION

Governance

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

(b) Describe

At onsemi, climate-related risks and opportunities are assessed,(a) Describe the board’s

Formal responsibility and oversight of matters related to

management’s role inmanaged and realized at the highest level of the organization. We

oversight of climate-related

environmental, health and safety (EHS), environmental, social

assessing and managing

believe that the responsibility of operationalizing mitigation andrisks and opportunities.

and governance (ESG) and sustainability issues at onsemi,

climate-related risks andadaptation strategies in response to climate-related risks andopportunities.

opportunities must be integrated at every level of the company,

including climate-related risks and opportunities, lies with theensuring the success of our risk management program and giving usboard Governance and Sustainability (GS) Committee, as statedthe ability to act nimbly at all levels when needed.

in the GS committee charter. The GS committee oversees
issues related to the company's governance principles and the

Our ERM program is overseen by a Risk Committee comprised of the

GS committee charter including risk and opportunities arising

CEO, CLO, CFO, CSO and EVP of Operations & Manufacturing. The

from climate change. The committee also oversees ESG and

Risk Committee is responsible for the identification, management

climate-related and sustainability-related initiatives including

and mitigation of risks faced by onsemi. To maintain accountability atoversight of strategy, risk management, opportunities, major
CDP Climate
Change,C1.1, C1.1a, C1.1b

capital expenditure and investments.
The GS Committee holds at least quarterly meetings per year
and is comprised of three or more independent members of
the board. Additionally, the entire board reviews progressagainst climate and sustainability-related goals, and targets
including progress towards onsemi’s goal to achieve net zero
emissions by 2040 (Net Zero 2040) across Scope 1, 2 and 3
and other metrics including energy usage, waste generation
and water withdrawal. Progress of the company’s sustainability
projects is communicated by the Chief Marketing Officer on aquarterly basis for review by the board. In 2022, the company
ensured ESG initiatives were a priority by tying aspects ofonsemi’s 2022 equity compensation program to Scope 1, 2 and3 emissions.

the highest functional level, executive staff members are appointed
CDP Climate

as risk sponsors for individual risks and work with risk owners

Change,who manage the risk on a day-to-day basis. ERM findings are

Questionscommunicated to the Risk Committee quarterly to ensure that thisC1.2, C1.2a,

information is communicated to executive staff and our Board of

C1.3, C1.3a

Directors.
Climate-related risks and opportunities impact business units (BUs)
and functional departments across the organization in unique andnuanced ways. BU and department leaders are responsible forunderstanding, monitoring and acting as the risk and opportunity
landscape changes, ensuring they have the information, capacity
and resources needed to respond quickly and effectively to trigger
events. Groups engaged in climate-relate risk and opportunity
assessment include our three BUs, finance, legal, manufacturing,business continuity, new product development, supply chain, ESG,
human resources and customer experience.

2022 Sustainability Report			Appendix |2

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

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

LOCATION OFDISCLOSURE

BRIEF DESCRIPTION

Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s
businesses, strategy and financial planning where such information is material.
(a) Describe the

At onsemi, we have identified potential climate-related risks

climate-related risks

and opportunities that could impact our business continuity,and opportunities thestrategy and financial planning. Risks identified include

organization has identified

transitional and physical risks with the capacity to impact ourover the short, medium, andown operation and value chain including our financials, supply

long term.

CDP Climate
Change,Questions C2.3,
C2.3a, C2.4,
C2.4a

onsemi over the near, medium and long term depending on the(b) Describe the impact

Identified climate-related risk and opportunities pose potentialof climate-related risks

impacts to our business across different impact categories

and opportunities on thesuch as finance, supply chain, customer demand and directorganization’s businesses,

operations. These impacts can be general and applicablestrategy and financial

across our business and value chain or they can be location-

Questions C3.1,
C3.1a, C3.3

challenging climate scenarios, onsemi executive leadership, various

strategy, taking intofunctional owners and the ESG team participated in a climate

consideration different

scenario analysis to inform a climate adaptation and resilience plan

climate-related scenarios

for implementation at the company. Scenarios used assume various

including a 2°C or lower

degrees of warming by 2100 and include social, technological,

scenario.

economic and political developments considered plausible undereach warming trajectory.
The three scenarios used to inform the development of a climate
action plan for onsemi include:
1. Failure to Decarbonize: runaway climate change resulting inand an increase in tangible and intangible asset values. Our

see the Risk and Opportunity Disclosure tables.

Change,Using three plausible, distinctive, consistent, relevant andof the organization’s

opportunities related to increase demand of onsemi products
identified climate-related risks and opportunities can impact

based, requiring specific plans and actions localized to theregion or country where the risk or opportunity is realized.
Realized potential impacts of the identified climate-related risk
and opportunities are to be integrated into strategic decisionmaking across onsemi in business continuity planning, capital

BRIEF DESCRIPTION(c) Describe the resilience

related opportunities identified include transitional and physicalFor a full list of onsemi’s climate-related risks and opportunities

CDP Climate

LOCATION OFDISCLOSURE

chain, workforce, company disclosure and reputation. Climate-risk or opportunity development and maturity.

planning.

TCFD RECOMMENDEDDISCLOSURE

warming above 3°C by 2100, international cooperation breakdowns
CDP Climate
Change,QuestionsC3.2, C3.2band increased potential for irreversible effects of climate change.
2. Orderly Decarbonization: orderly decarbonization resulting inwarming limited to 1.5°C by 2100, advancement, development
and adoption of sustainable technology and global policies for
decarbonization, including carbon pricing
3. Disorderly Decarbonization: disorderly decarbonization resulting
in warming around 2°C by 2100, the abrupt and uneven introductionof climate policies and increased financial consequences of climatechange.
Through this exercise, relevant climate-related risks andopportunities were identified and socialized for inclusion in ouroverall business strategy. We’re exploring the development ofinternal controls and procedures, adaptation and mitigation plans
and identification of trigger events to inform future action and noregret actions to be taken in response to the outcomes of our climate
scenario analysis.

expenditure planning and new product development.

2022 Sustainability Report			Appendix |3

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

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

LOCATION OFDISCLOSURE

BRIEF DESCRIPTIONTCFD RECOMMENDEDDISCLOSURE

LOCATION OFDISCLOSURE

Risk Management
Disclose how the organization identifies, assesses and manages climate-related risks.
(a) Describe theonsemi uses scenario analysis to understand the impacts oforganization’s processes forclimate change on our business operations, corporate strategy

identifying and assessing
climate-related risks.

CDP Climate
Change,Questions C1.2,
C1.2a, C2.1,
C2.1a, C2.1b,C2.2, C2.2aand value chain. By understanding the presumed operational
context of different decarbonization trajectories, we canidentify potential climate-related physical and transitionalrisks that could conceivably pose an impact to our businessand strategy. These scenarios are not intended to predict
the future, but instead, help us understand our potential risk

Metrics and Targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities
where such information is material.
(a) Disclose the metrics

Our scenario analysis detailed important metrics to help us assess

used by the organizationand monitor climate-related risks and opportunities in line with ourto assess climate-relatedrisks and opportunities
in line with its strategy
and risk management
process.

exposure and build resilience through activities to enhance our

CDP Climate
Change,Sections C5,
C6, C7, C8

Sustainability
ReportThrough our scenario analysis, we have identified various action

organization’s processes forplanning and trigger monitoring activities to build resilience tomanaging climate-relatedrisks.

CDP Climate
Change,Questions C2.2,
C2.2a, C2.3,
C2.3aplans and identification of trigger events to inform future action
and no-regret actions to be taken in response to the outcomesof our climate scenario analysis. Owners will be assigned tomonitor and manage relevant climate-related risks to ensure
actions are being taken when appropriate to ensure theresilience of business operations and strategies.

(c) Describe how processes
for identifying, assessing
and managing climaterelated risks are integrated
into the organization’s

CDP Climate
Change,Question C2.2,

overall risk management.

C2.2a

2022 Sustainability Report			

1, Scope 2 and, if

Scope 1 – 841,104 MTCO₂eappropriate, Scope 3
greenhouse gas (GHG)
emissions and the relatedrisks.

CDP Climate
Change,Sections C5,
C6, C7, C8
Sustainability

through scenario analysis have been mapped to relevant

Reportidentified climate-related risks.

• Total greenhouse gas emissions

In Fiscal Year (FY) 2022, our GHG emissions were as follows:

risks falls within ERM. Our climate-related risks identified

identified and assigned to ensure continuous management of• Total energy consumption included percentage from renewables(b) Disclose Scope

2022 onsemi

integration into our ERM framework. Risk owners have been

• R&D expenditures for low-carbon products• R&D expenditure on products that support customer
decarbonization

The process of identifying, assessing, and managing corporaterisk definitions within our current risk registrar for ease of• Product energy, water and emissions intensity• Investment in climate adaptation measurespotential climate-related risks. We’re exploring the developmentof internal controls and procedures, adaptation and mitigation

strategy and risk management process. Monitored metrics include:• Percentage of expenditure on energy efficiency
2022 onsemi

preparedness.
(b) Describe the

BRIEF DESCRIPTION

Scope 2 – 741,934 MTCO₂e
Scope 3 – 2,143,211 MTCO₂e
For a breakdown of Scope 3 by category, see the Energy
Consumptions and Emissions section of our 2022 sustainability
Report, pg. 24.
As regions and nations develop regulations aimed at accelerating
local or global decarbonization efforts, onsemi may encounter risks
associated with our GHG emissions including carbon prices andcarbon border adjustments. These can result in increased operational
expenditures if we continue to emit GHG emissions through ourbusiness operation activities.

Appendix |4

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

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

LOCATION OFDISCLOSURE

BRIEF DESCRIPTION(c) Describe the targets

At our Analyst Day in 2021, we announced Net Zero 2040

used by the organization

along with a commitment to use 50 percent renewable energy

to manage climate-related

by 2030 and 100 percent renewable energy by 2040. Thisrisks and opportunities

commitment will guide how we operate our business overand performance against
targets.

CDP Climate
Change,Questions C4.1,
C4.1b, C4.2,
C4.2b, C4.3,
C4.3a, C4.3b,C4.3c
onsemi blog,

the coming years and is essential to ensuring we operate in asocially thoughtful and environmentally responsible manner.
We are working to create a climate transition plan to meet
Net Zero 2040. We’re exploring the use of available levers
for reducing emissions across Scope 1 and 2 internally at ourfacilities, along with pathways for engaging suppliers and otherreduction strategies in the value chain for Scope 3 emissions
reductions outside onsemi’s direct control. We’re determining

the appropriate milestone tasks, metrics and key performance
2040 Emissions indicators to use for our climate transition plan, allowing us toGoal for onsemi track our progress over time.
By identifying and monitoring our climate-related risks andopportunities, we can work to set further targets used to build
resilience and reduce potential negative impacts from identified
risks and realize potential positive impacts from identified
opportunities.

2022 Sustainability Report			Appendix |5

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Risk and Opportunity Disclosures
Transition risks
Transition risks were most prevalent under the Orderly Decarbonization and Disorderly Decarbonization scenarios.
RISK

VALUE
CHAIN

FINANCIAL IMPACTTIMEFRAME OF IMPACTONSEMI RESPONSE

Risk Management
Introduction of

Own

Increased

Negligible impact at

onsemi’s approach to enhancing

national carbon

operations

expenditurepresent; however,

the resilience of its own

pricing schemes

associated with

impact increases in theoperations to transition risks

and/or carbon

manufacturing andmedium term (before

border adjustment

corporate activity.

2030) under somemechanisms

Potential reduction

scenarios.

includes:• Achieving net zero
emissions: throughenergy efficiency projects,
renewable energy
procurement and reducing
greenhouse gas emissions
from process gases throughprocess swaps, gas swaps
and abatement technology.

in product margins.
Increased exposure
to legal liability.
Regulatory limits

Own

Reduced revenue

Negligible impact at

on carbon-related

operations

from the reduction inpresent; however,production capacity.

impact increases in the

Increased exposure

medium term (before

to legal liability.

2030) under someprocesses

scenarios.
Varied availability of

Own

Increased

Some impact at

renewable energy

operations

expenditurepresent, the impact

in locations where

associated withincreases into theonsemi operates

sourcing renewablemedium term (before

energy (in order2030), mostly in theto meet regulation

Failure to Decarbonize

and/or strategic

scenario.

objectives)
Increased

Own

Increased

Impact is present today

sustainability

operations

expenditure on staff

and increases in thereporting andand data/information

medium term (before

assurancesystems and2030) under somerequirements

controls

scenarios.

2022 Sustainability Report			• Integration with strategicplanning and risk
management: such as
exploration of incorporating
an internal carbon price incapital expenditure planning.
• Enhancing disclosure:through ongoing alignment
with global climate-related
reporting frameworks
and comprehensive data/
information controls.

RISK

VALUE
CHAIN

FINANCIAL IMPACTTIMEFRAME OF IMPACTONSEMI RESPONSE

Carbon pricing

SupplyIncreased

Negligible impact at

onsemi’s approach to enhancing

schemes and/chain

expenditure for raw

present; however,

the resilience of its supply chainor carbon bordermaterials, products

impact increases in theadjustment

and services, as

medium term (before

mechanisms applied

suppliers pass2030) under someto onsemi suppliers

costs on to onsemi.

scenarios.

and their emissions

Potential reduction

to transition risks includes:• Understanding emissions:developing a baseline of
supplier emissions throughour Scope 3 emissions
inventory.

in product margins.
Limitations on

SupplyReduced revenue

Negligible impact ataccess or availability chain

if raw materials

present; however,to raw materials

cannot be supplied

impact increases in the

including but not

to meet demand,medium term (before

limited to rare

and increased2030) under someearth minerals

expenditure

scenarios.

due to increasing

associated withregulations

sourcing alternate• Supplier engagement: we are
exploring ways to incorporate
public reporting of GHG
emissions by our suppliers
and other ESG matters into
our supplier scorecard,
which is used to track andencourage enhancement of
supplier performance.

suppliers andmaterials.
Pressure to

SupplyIncreased

Negligible impact atdemonstratechain

expenditurepresent; however,

deforestation-freeassociated with

impact increases in the

supply chain

investigating

medium term (before

deforestation2030) under somein onsemi’s

scenarios.

supply chain, andpotentially switchingsuppliers.

Appendix |6

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Physical risks
Physical risks were most prevalent under the Failure to Decarbonize scenario.
RISK

VALUE
CHAIN

FINANCIAL IMPACTTIMEFRAME OF IMPACTONSEMI RESPONSE

RISK

VALUE
CHAIN

FINANCIAL IMPACTTIMEFRAME OF IMPACTONSEMI RESPONSE

Production

Own

Reduced revenue

Impact already occurs

onsemi’s approach to enhancing

Extreme weather

SupplyReduced revenue

Impact already occurs

onsemi’s approach to enhancing

disruption fromoperations

from lost production

in some locations,the resilience of its own

impacts onsemi

chainfrom lost production

in some locations,the resilience of its supply chain

extreme weather

and increased

frequency and severity

operations to physical risks

supplier locations

frequency and severity(including indirect

expenditureof impact increases in

and/or supply chainof impact increases in

impacts such

associatedas government-with restarting

imposed power

production.

restrictions and/or impacts tosurrounding

includes:the medium term under • Enhanced business
continuity planning: we
all scenarios.
are exploring incorporating
future scenarios into existing
business continuity planning,prioritizing sites at higher riskof climate-related impact.

infrastructure)
Damage to onsemi

Own

Increased

Impact already occurs

facilities

operations

expenditure to repair

in some locations,facilities, increased

frequency and severity

insurance costsof impact increases in
the medium term under
all scenarios.

Limits to energy and

Own

Reduced revenue

Impact already occurs

water availability inoperations

from lost production.

in some locations,specific locations

Increasedfrequency and severityat specific times of

expenditure isof impact increases inyear

associated withthe medium term underhigher energy andall scenarios.

water costs.
Extreme weather

Own

Increased

Impact already occurs

impacts employee

operations

expenditure andin some locations,health, safety andliability risk. Potential frequency and severity

productivity

reduced revenueof impact increases inassociated with lostthe medium term under

production fromall scenarios.

• Infrastructure planning:
exploring the considerationof climate scenarios whenplanning for facility and/or equipment upgrades or
acquisitions.

logistics

to physical risks includes:• Existing suppliers: Exploring
incorporation of future
the medium term underscenarios into supplier
all scenarios.
engagement, including audit
specifications.
• Prospective suppliers:
Exploring incorporationof future scenarios intobusiness continuity
requirements.

• Accelerate resource
efficiency: adopting energy
conservation and efficiency
measures and increasingwater recycling practices,
reducing the number ofresources needed to operate
effectively.

absenteeism.

2022 Sustainability Report			Appendix |7

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Climate-related opportunities
Climate-related opportunities are most prevalent under the Orderly Decarbonization and Disorderly
Decarbonization scenarios.
OPPORTUNITY

VALUE
CHAIN

FINANCIAL IMPACTTIMEFRAME OF IMPACTONSEMI RESPONSE

onsemi products

Customer/

Increased revenue

Impact already occurs

onsemi’s approach tosupporting

marketassociated within some locations andcapitalizing on climate-related

electrification

demandincreased market

sectors; impact may

onsemi products

Customer/

Increased revenue

supporting solutions

marketassociated withfor energy, water

demandincreased market

opportunities includes:
increase within existing • Triple bottom line productoffering: onsemi’s strategy
geographies/sectors
targets the use of ourand expand to new
products in decarbonization
geographies/sectors
and efficiency applications
under some scenarios.
such as electric vehicles,
factory automation
Impact already occurs
and renewable energy
in some locations andinfrastructure.
sectors; impact may

and other resource

demand forincrease within existing

efficiency

technology solutions

geographies/sectorsthat increaseand expand to new

resource efficiency.

geographies/sectorsof transport,

demand forinfrastructure andelectrification

wider renewable

technologies.

energyunder some scenarios.
onsemi products

Customer/

Increased revenue

Negligible impact

supporting

marketassociated withat present; however

technology for

demandincreased market

impact increases in the

avoided emissions

demand for avoided

medium term (before

and carbon

emissions and2030) under someremovalscarbon removal

scenarios.

• Integration into strategicplanning: onsemi
incorporates climate-related
opportunities, including
market developments indecarbonization technology,
in its processes for new
product development,
expansion of manufacturing
capacity, and other strategicplanning processes.

technology.

2022 Sustainability Report			Appendix |8

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Report Revision History
VERSIONDESCRIPTION OF REVISION AND REASONEFFECTIVE DATE

O

2022 Sustainability Report Document Initial Release

27 June 2023

2022 Sustainability Report			Appendix |92022 Sustainability Report
onsemi
Investor Relations and Corporate Development
5701 N. Pima Road
Scottsdale, Arizona 85250
investor@onsemi.com

www.onsemi.com