TABLE OF CONTENTS
A Letter from President and CEO

1

Employee Engagement

33

Report Overview

3

Recognizing our Employees

33

Our Business5

Prevention of Slavery and Human Trafficking

34

Overview

5

Prevention of Child Labor

34

Mission, Vision and Culture

5

Health and Safety

34Core Values

5

Health and Wellness Programs

36

Mergers and Acquisitions

7

Recognition

37

Worldwide Locations

8

Our Planet

39

Brand

8

Overview

39

Customers

9

Management Approach

39

Financial Strength

9

Climate Change

40

Quality and Reliability

10Conservation

40

Enterprise Risk Management

11

Waste Management40

Responsible Business Alliance

12

Reclaim and Recycle

40

Responsible Sourcing

14

Water Management

41

Recognition

16

Energy Consumption

41

18

Air emissions

42

Overview

18

Recognition

42

Corporate Compliance and Ethics Program

19

Our Community

44

Management Approach

19

Overview

44

Progress

19

Global Corporate Giving Program

44

Awareness

22

Employee Volunteerism

45

Public Policy and Activities

23

Community Impact: 201745

Political Contributions

23

Recognition

50

Recognition

24

Our People

26

Memberships and External Initiatives

51

Overview

26

Stakeholder Engagement

52

Management Approach

26

Material Topics

53

Commitment to Diversity

27

Additional Data

54

Recruitment and Retention

30

Contact Us

55

Professional Training and Career Development30

2017 Global Reporting Initiative Content Index

56

Our Governance And Ethics

Page bAppendix51

Corporate Social Responsibility Report

A Letter from Our President and CEO — Keith Jackson[G4: 102 – 14]

As our company continues to grow, we must continue to invest – not only in our infrastructure, scale, technology
and talent, but also in our corporate social responsibility. We have worked on new ways to take our corporatesocial responsibility to the next level, including creating a community grants program, measuring diversity initiatives,and being named for the third year in a row as a World’s Most Ethical company. Our customers and suppliers are
increasingly inquisitive about our supply chain, quality programs, ethical standards, commitment to diversity and how
we tie that back to our business operations. That is part of growing as a company, and we are prepared to have those
discussions.
Engaging our Supply Chain
In partnership with our over 34,000 employees around the world, we continue to collaborate with customers, distribution partners and vendors todevelop not only more efficient silicon solutions, but more efficient ways of doing business. In 2017, we shipped more than 72.8 billion units throughour global logistics network and delivered products with greater than 94 percent average on time delivery to our key customers.
We remain a full member of the Responsible Business Alliance (formerly the Electronics Industry Citizenship Coalition – EICC). With RBA membership
being key to our CSR program, we adhere to the RBA’s Code of Conduct. Every other year, we reengage our major corporate and site-level suppliers,
based on spend, to re-sign our company’s CSR Statement of Conformance related to our Code of Business Conduct and the RBA Code of Conduct.
As an indication of our suppliers’ agreement, over 300 of our key suppliers re-signed ON Semiconductor’s CSR Statement of Conformance and RBA
Code of Conduct in 2017. Our company also engages our large corporate and site-level suppliers to complete risk assessments through the RBA SelfAssessment Questionnaire (SAQ) every other year.
Additionally, we participate in the RBA’s Responsible Minerals Initiative (RMI) (formerly known as the Conflict Free Sourcing Initiative) which began
as a joint effort between the RBA and Global e-Sustainability Initiative (GeSI). We engage in reasonable due diligence with our supply chain to ensureminerals are not being sourced from entities supporting armed conflict within the Democratic Republic of Congo and adjoining countries. We continue
to engage our suppliers to analyze their sources as well and to complete the RMI Conflict Minerals Reporting Template (CMRT).
Compliance, Ethics and Diversity
Our core values of respect, integrity and initiative are not slogans; they are our guiding principles. We measure ourselves against these guideposts
through our Corporate Compliance and Ethics Program (CCEP). Over the past year, we have continued to grow the CCEP around the world throughadditional Compliance and Ethics Liaison appointments.
To further engage our employees in ethics and CSR, we celebrate Global Compliance and Ethics Week each year. In 2017, we also included corporatesocial responsibility to showcase the advancements of both programs and reinforce what employees learn during our annual Code of Business Conduct
and Corporate Social Responsibility training. We will continue to celebrate our expanded Global Compliance, Ethics and CSR Week every year as itprovides awareness, recognition and reinforcement of our compliance and CSR programs as well as location-specific learning activities.
Along with ethics comes our commitment to diversity. We are constantly striving towards a more diverse workplace which benefits our company andenables us to more successfully meet the needs of all our stakeholders. In 2017, we started the process of benchmarking our internal perceptions ofdiversity and inclusion. Our Diversity and Inclusion Initiative operates with the vision and mission of cultivating a culture where diversity and inclusion
is embedded in everything we do.
Environment Conservation Efforts
We align our health and safety management systems to the RBA Code of Conduct and procedures for our environmental management conform to ISO
14001 (Environmental Management Systems) certification. Our sustainability objectives for 2016-2020 include reducing chemical, energy, water andcarbon consumption each by five percent. In 2017, our conservation highlights include:

ON Semiconductor

Page 1• Waste Management: The amount of total waste we reused and recycled in 2017 was 13,518,781 kilograms while waste directed to landfill was
12,032,012 kilograms.
• Reclaim and Recycle: In 2017, approximately 1,147 metric tons of scrap materials and 609 kilograms of precious metals from our company’s
worldwide manufacturing facilities was processed, sorted and sold for reuse. The reclamation of these materials recouped more than $26.6 million.
• Water Management: Our conservation and consolidation projects reduced water consumption by 14 percent at our wafer fabs and 15 percent
at our assembly and test sites in 2017 compared to the annual consumption in 2016.
• Energy Consumption: There was a normalized reduction of energy consumption by 14 percent at our wafer fabs and 8.6 percent at assembly
and test sites from the previous year.
• Air Emissions: Normalized carbon emissions reduced by eight percent at our front end and assembly and test operation facilities in 2017
compared to 2016. Scope 2 greenhouse gas emissions reduced by 67,675 metric tons of carbon dioxide due to 47 projects in six countries in thereporting year.
Corporate Social Responsibility Related Recognition
In 2017, we received several awards and recognitions from external entities that further proves our commitment to CSR, sustainability and safety
efforts. We received the following recognitions:• World’s Most Ethical Company for the third consecutive year (corporate award)• Barron’s list of 100 Most Sustainable Companies (corporate award)• EcoVadis Assessment Outstanding Score (corporate award)• RBA Platinum Status Recognition (South Portland, Maine and Seremban, Malaysia)• 2017 Gold Class Award of Malaysian Society for Occupational Safety & Health (both facilities in Seremban, Malaysia)• Outstanding Award for Don Emilio Abello Energy Efficiency (Tarlac and Carmona, Philippines)• ASEAN Energy Management in Buildings & Industries Award (Carmona, Philippines)• Binh Duong Government’s Certification of Outstanding Company in Fire Safety (Binh Duong, Vietnam)• Idaho Power’s Pocatello Energy Efficient Upgrades and Incentives (Pocatello, Idaho)• 2017 Winner of Production Safety Knowledge Competition form Xili Federation of Trade Unions (Shenzhen, China)
These awards, along with our corporate social responsibility efforts, conservation initiatives and quality focus are all testaments to the dedication of
our employees around the world. We look forward to strengthening these areas, as well as our partnerships with our customers, suppliers and otherstakeholders over the coming year. To that end, we constantly encourage our employees to lead by example, especially when it comes to displaying
our company’s core values of respect, integrity and initiative. Our corporate social responsibility programs and ideals are deeply rooted in our corevalues, and we remain committed to positively impacting our communities and growing our CSR and sustainability initiatives, while competing in andcontributing to the growth of the semiconductor industry. We are dedicated to continuing to serve our communities in an ethically, environmentallyand socially responsible way.

Keith Jackson
President and CEO

Page 2

Corporate Social Responsibility ReportReport Overview[G4: 102-46] [G4: 102-54] [G4: 102-56]

ON Semiconductor’s 2017 Corporate Social Responsibility (CSR) Report is prepared in accordance with the Global Reporting Initiative (GRI) Standards:
Core option. The report further expands upon and provides updates to several topics covered in our previous report, which was published in July
2017. Some of the topics included are the company’s business profile, responsible sourcing, governance and ethics, employee relations, environmental
sustainability and community involvement. The scope of the report includes ON Semiconductor, its worldwide subsidiaries and joint ventures for which
the company has management control. Environmental data covers leased and owned internal manufacturing sites. These sites account for a majorityof our environmental footprint worldwide. While ON Semiconductor has not sought external assurance for the content of its 2017 CSR Report, certain
data included is subject to external review and all information provided is reviewed internally.
More information about ON Semiconductor’s operations and financial statements is available in the company’s 2017 Sec Form 10-K.

ON Semiconductor

Page 3

INGENUITY

Page 4

Corporate Social Responsibility ReportOUR BUSINESS
Overview[G4: 102-1 - 102-3] [102-5]

ON Semiconductor (NASDAQ: ON) is a publicly traded global semiconductor company headquartered in Phoenix, Arizona. We drive energy efficientinnovations, empowering customers to reduce global energy use. The company is a leading supplier of semiconductor-based solutions, offering acomprehensive portfolio of energy efficient power management, analog, sensors, logic, timing, connectivity, discrete, SoC and custom devices. The
company’s products help engineers solve unique design challenges in automotive, communications, computing, consumer, industrial, medical,
aerospace and defense applications. ON Semiconductor operates a responsive, reliable, world-class supply chain and quality program, a robust
compliance and ethics program and a network of manufacturing facilities, sales offices and design centers in key markets throughout North America,
Europe and the Asia Pacific regions.
To learn more about our ownership structure and legal proceedings see our 2017 Securities and Exchange Commission (SEC) Form 10-K.

Mission, Vision and Culture
MissionON Semiconductor delivers high quality, energy efficient solutions to solve its customer’s electronics design challenges with a world-class supply chain
and ethical culture committed to global corporate social responsibility.
VisionWe will be the trusted supplier of choice for energy efficient innovations.
CultureWe promote a mutually rewarding partnership that creates a customer-oriented organization, encourages innovation and teamwork and rewards
achievements. We value quality, efficiency and superior customer service.

Core Values[G4: 102-16]

Our core values, which were first developed in 2004, define who we are as individuals and as representatives of ON Semiconductor. We are aperformance-based company committed to profitable growth, world class operating results, benchmark quality and delivering superior customer andshareholder value. By putting our core values of Integrity, Respect and Initiative into action, we each do our part in making our company a great place
to work. Each year, our governance body and employees globally are provided a copy of the company’s core values through the Code of BusinessConduct, which is available in languages that represent our worldwide workforce.
Respect
We treat each other with dignity and respect. We share information and encourage different views in an open and honest environment. We draw out
the best in each other, recognizing that diversity of backgrounds and experience are key strengths. We all win when we support each other.
Integrity
We mean what we say and say what we mean. Our company has set high standards for our products and individual conduct. Our reputation depends
on the highest standards of ethical behavior. We are accountable for delivering our commitments on time with highest quality. We address issues
objectively, using facts and constructive feedback in a work atmosphere where we do not fear open discussion or questions. When a decision has been
made, we work to support it. We comply with all legal requirements and hold ourselves to the highest standards of ethical conduct.
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 our commitment to comply with applicable laws, regulations and standards. If a problem exists, we see it through to rapid
resolution while acting in an ethical manner. Each of us is expected to demonstrate these Core Values in our roles at ON Semiconductor. These values
apply equally to us all – employees and directors alike.
ON Semiconductor

Page 5

Respect

Integrity

Initiative

Core Values and Corporate Social Responsibility Map

ON Semiconductor Core Values,
Principles, and Programs

ON Semiconductor’s operations are deeply rooted in the company’s core values of respect, integrity and initiative as well as our guiding principle of being an excellent corporate citizen.
See how our standards, programs and policies are connected to our core values and principles.
ON Semiconductor Areas of Focus, Standards, Policies and Programs

Respect
We treat each other with dignity andrespect. We share information andencourage divergent viewpoints in an open
and honest environment. We draw out
the best in each other recognizing thatdiversity of backgrounds and experience
are key strengths. We all win when we
support each other by placing the successof the company above individual interests.

Integrity
We say what we mean and areaccountable for delivering ourcommitments on time. We address
issues in an objective, fact-based andconstructive fashion without fear of
reprisal. When a decision has been made,we all execute to support it. We comply
with all legal requirements and holdourselves to the highest standards of
ethical conduct.

Interrelated areas

Governance
Code of Business Conduct
Corporate Compliance and Ethics Program
Monitoring and oversight
Board independence
Ethics hotline
Investor relations
Anti-corruption
Data privacy
Customer privacy
Legal compliance

Environmental Stewardship
Environmental reporting
Carbon emissions
Electricity consumption
Waste management
Reclaim and recycle
Water management
Chemical consumption and disposal
Grievance mechanisms
RoHS
REACH
ISO 14001

Initiative
We take informed risks while making
data-based decisions. If a problem exists,
we are individually responsible to seeit through to rapid resolution. We value
people who demonstrate a positive, “cando” attitude, while collaborating to win. We
work smart and with a sense of urgency.

Corporate Citizenship
At ON Semiconductor, we believe thatbeing an effective and well-respected
corporation means being a responsible
corporate citizen.

Page 6

Public Policy
Advocacy
Organization memberships
Trade policy

Financial strength
Tax management strategy
Cash management
Financial reporting

Employee well-being
Anti-discrimination/Anti-harassment
Health, wellness and safety
Compensation and benefits
Training and development
Leadership and Diversity Council
Freely chosen labor
Working hour standards
Employee Activity Committees
Freedom of association
Employee engagement
Performance review
OHSAS 18001

Product Solutions
Innovation
Solving design challenges
Energy efficient products
Quality and reliability: Road to Zero Defects
Customer satisfaction
Branding and marketing

Stakeholders
Employees
Suppliers
Customers
Government
NGOs
Investors
Communities
Non-Profits

Strategic PlanningEnterprise Risk Management
Business Continuity, Crisis Management & Disaster Recovery
Product Line Business Plans
Executive strategy session
Reliable supply chain

Corporate Social Responsibility
Corporate Social Responsibility management system
RBA Code of Conduct
Responsible sourcing
Sustainability reporting
Conflict minerals and rare earth minerals policy
Supplier self-assessment questionnaires, training, audits and corrective action plans
Anti-trafficking policy
No child labor

Community Outreach
Volunteerism
Global Corporate Giving
Education
Disaster relief
HealthHuman services
Environment

Corporate Social Responsibility ReportMergers and Acquisitions
In our highly competitive industry, we remain agile and strategic in order to meet business and market needs. Our focus stems from our highly ethicalculture, safety first, quality always mentality and our core values of respect, integrity and initiative.
Since ON Semiconductor’s spin off from Motorola in 1999, the company has proudly incorporated best practices and leaders from all of our acquisitions.
In October 2017, we announced an agreement with Fujitsu Semiconductor Limited whereby we will purchase a 30 percent incremental share of the
Fujitsu 8-inch wafer fab in Aizu-Wakamatsu, resulting in 40 percent ownership when the purchase is complete. Initial transfers began in 2014, andsuccessful production and ramp up of wafers began in June 2015. We also plan to increase ownership to 60 percent by the second half of 2018 andto 100 percent in the first half of 2020. With these agreements with Fujitsu Semiconductor, our company will be able to maintain industry-leading
manufacturing cost structure and also optimize our capital spending in coming years.

ON Semiconductor Through the Years
October 10, 2008

December 31, 2007

January 1, 2011

January 27, 2010

July 15, 2015

April 30, 2014

May 9, 2018

September 19, 2016

CPU Voltage and PC Thermal
Monitoring Business

2000

2006

2007

2008

April 2000

2009

2010

March 17, 2008

May 15, 20062011

June 9, 2010

November 4, 2009

2014

2015

2016 2017 2018

August 15, 2014

February 27, 2011

March, 2017
mmWave Technology
from IBM®

andOregon Fabrication Facility

ON Semiconductor

CMOS Image Sensor Business Unit

Advanced Sensor
Design Center

Page 7

Worldwide Locations[G4: 102-4]

Manufacturing Locations:
Belgium, Canada, China, Czech Republic, Japan, Malaysia, Philippines, South Korea, United States, Vietnam
Design Center Locations:
Belgium, Canada, Czech Republic, France, Germany, India, Ireland, Japan, Korea, Philippines, Romania, Slovak Republic, Switzerland, Taiwan, UnitedStatesSolution Engineering Center Locations:
China, Germany, Japan, South Korea, Taiwan, United States

Brand[G4: 102-7]

Empowering Design Engineers to Reduce Global Energy Use
ON Semiconductor has established itself as a market leader in high efficiency power solutions for automotive, high performance power conversion,industrial, wired and wireless communications, and computing applications. By working closely with associations, industry standards organizations, andgovernment entities such as ENERGY STAR®, the China National Institute of Standardization, and the European Energy Using Products (EuP) Directive,
we continue to demonstrate our commitment to the development of innovative energy efficient solutions to support a variety of end markets. To help
reduce new product development costs, speed time-to-market for our customers and support the design of energy efficient electronics, we provide
online Power Supply WebDesigner™ tools and GreenPoint® reference designs, for a range of applications that meet or exceed global energy efficiency
standards. We offer innovative products that enable more efficient power supplies through improved power factor, enhanced active-mode efficiency,
and reduced standby-mode power consumption.
Page 8

Corporate Social Responsibility ReportHelping Customers Solve their Unique Design Challenges
We work closely and collaboratively with our customers to solve their unique design challenges using innovative technologies, robust designs, andenergy efficient products and solutions. We operate a global network of Solutions Engineering Centers (SECs), on-site customer design facilities, andapplications-focused design and test labs, all supported by global teams of field applications engineers working to meet the needs of an expanding
customer base.
Operating a World-Class Supply Chain and Quality Program
We operate a flexible, reliable, responsive supply chain that supports complex manufacturing networks and dynamic global market conditions. This
includes multiple manufacturing and logistics sites located near our customers to ensure supply continuity. During 2017, the company shipped morethan 72.8 billion units through its global logistics network and delivered products with greater than 94 percent average on time delivery to requested
dates for all key customers. The company’s approximately 34,000 employees around the world are collaborating with customers, distribution partners
and vendors to develop not only more efficient silicon solutions, but more efficient ways of doing business.

Customers

Revenue by Type of Customers[G4: 102-6 – 102-7]

6%

Our customers can be categorized into three categories: original equipment manufacturers (OEMs),
distributors and electronic manufacturing service providers. We focus on three types of OEMs: multinationals; selected regional accounts; and target market customers. Large multi-nationals andselected regional accounts, which are significant in specific markets, are our core OEMs. Distributors,
which accounted for approximately 60% of our revenue in 2017, usually resell to mid-sized andsmaller OEMs, electronic manufacturing service providers, and other companies. These customers
typically provide manufacturing services to OEMs.

34%
OEMs
Distributors
Electronic Manufacturing
Service Providers

60%
Data presented is as of December 31, 2017.
Data presented as of December 31, 2017

Financial Strength[G4: 102-6 – 102-7]

ON Semiconductor demonstrates financial strength and efficiency through strong cash flow, a stablerevenue stream and balanced geographic and end-market exposure. We believe that our company’s
strong financial performance and effective use of resources will continue to provide opportunities for
future growth.

2017 Revenue:$5,543 Million

Datapresented
presented asisofas
December31, 2017 31, 2017.
Dataof December

Revenue by Market
Automotive

Consumer• Autonomous vehicles• Drones and sports cameras• Vehicle electrification• Thin TVs, STBs & game
consoles• Body electronics and lighting• Vehicle communication &power management• Notebooks, ultrabooks &2-in-1s

Communications &Networking• Smart phones & tablets• Desktops, PCs, & All-in-ones• Switches, routers & basestations• Wearables• Servers, workstations & cloud• Wireless & fast charging• White goods• Power supplies, graphics &HDDs• USB Type-C

31%

Computing

14%• Internet of things, smart
building & smart cities• Monitoring, surveillance andsecurity systems• Cockpit displays, guidancesystems, and IR imaging• Hearing, imaging, diagnostics,
therapy & monitoring systems• USB Type-C

10%

Industrial, Aerospace &Defense, Medical

20%

25%

Data presented is as of December 31, 2017.

ON Semiconductor

Page 9

Revenue by Region
8%
26.5%

7.7%

Revenue by Group

12.1%

13.9%

35.2%

13.5%

32.2%

United Kingdom
United States
Hong Kong
Japan
Singapore
Other

50.9%

Analog Solutions GroupPower Solutions Group
Image Sensor Group

Data presented
December 31,
Data
presentedisasasofofDecember
31,2017.
2017.

Quality and Reliability
We have demonstrated our commitment to live by stringent, internationally accepted requirements for reliability and quality. We launched our Road
to Zero Defects initiative over three years ago to eliminate quality excursions, improve 8D responsiveness, lower our parts per billion (ppb) defect rateand enhance our quality standards. We recognize that incorporating these objectives in our service offerings, processes and products will enable us touse our quality and reliability as the fuel for growth of the corporation. Ultimately, ON Semiconductor is committed to maintaining a distinctive, worldclass quality system, which transcends all international quality standards and aims to exceed customer expectations. For more information, please see
our Quality and Reliability Handbook.
Culture of Quality
In 2017, we deployed the Quality of Culture survey at our legacy Fairchild Semiconductor locations. The same survey was conducted in June 2016 atlegacy ON Semiconductor facilities. The purpose of the Culture of Quality survey is to measure employee understanding of our quality initiatives andgain insight on employee perception of our quality program. Overall ON Semiconductor has performed higher than the average score of benchmark
companies surveyed in the areas of employee ownership, peer involvement and leadership emphasis. Our performance has consistently improved due
to our increased focus on our quality culture and performance in our Road to Zero Defects projects.

Page 10

Corporate Social Responsibility ReportEnterprise Risk Management[G4: 102-11]

In an ever-changing world where we are forced to deal with uncertainty every day, how an organization tackles uncertainty is a key predictor of its
success. Leading companies outperform their peers because they do a better job of taking and managing risks – not because they do a better job
avoiding them. The goal of the ON Semiconductor Enterprise Risk Management (ERM) program is to systematically, consistently and effectively identify,
evaluate, prioritize and manage key opportunities and risks affecting the company. The ERM program strives to develop a risk-aware culture across thecompany and drive effective efforts to mitigate top priority risks, thereby enhancing the likelihood of achieving strategic objectives while increasing theprotection of our assets.

Our ERM cycle includes processes and tools to identify, prioritize and respond to high priority enterprise risks. The ERM process operates within thecontext of the overall corporate strategic planning process and within the boundaries established by the company’s stated risk appetite. The program
includes distinct efforts to address both nearer-term existing risks, as well as longer-term emerging risks.
We identify and evaluate risks across all organizations within the company. Through our ERM discipline, we categorize and assess risks across thefollowing groupings:• Business and Strategic• Legal and Regulatory• Emerging• Compliance and Ethics• Financial• Human Capital• Operational• Reputational• Technology/New Product Development
Management Approach
Communication and reporting continue throughout all phases of the process. All business groups and support functions report top risks to the Executive
Staff and Board of Directors on a quarterly basis. Presentations to the Board include a risk heat map depicting the associated group’s top risks, risk
rating score, target risk level and a summary of relevant mitigation actions that includes completion timeframe and ongoing elements. Emerging risk
sessions are conducted semi-annually with results reported to the Executive Team and Board.

ON Semiconductor

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Critical to the execution of the ERM program at ON Semiconductor, we have appointed a Chief Risk Officer and a Corporate Risk Committee. In addition,
the framework includes a comprehensive network of ERM Risk Champions to support the program. Risk Champions are individuals from all functionalgroups within the company who are trained to be ERM subject matter experts within their organizations and to help drive risk management discipline
across all levels within their respective groups. While our executive team continues to set a strong Tone at the Top regarding risk management, theRisk Champions are key to driving an even stronger Mood in the Middle. Through their actions and guidance, risk champions lend credibility to thedirection set by the Board and senior corporate staff with respect to risk management, thus preventing the program from sliding into a low-value,
simple “check-the-box” exercise.
One significant aspect of our ERM program cannot be overemphasized – the value-add is driven by the open conversation, communication andcollaboration facilitated through the process. The program promotes better strategic decision making across all levels and functions of the company.
While our ERM program continues to evolve, mature and improve, we have made great strides in making it a critical activity which has the full supportof executive leadership and the ON Semiconductor Board of Directors. In doing so, risk management at ON Semiconductor is a critical and strategic
capability, as opposed to a simple reporting process.

Responsible Business Alliance[G4: 102-16] [G4: 102-18] [G4: 205-1] [G4: 308-2] [G4: 412-1] [G4: 414-2]

CSR at ON Semiconductor is deeply rooted in our core values of Respect, Integrity and Initiative. We provide our customers around the globe witha broad portfolio of innovative, energy efficient and environmentally friendly semiconductor solutions addressing virtually all market segments. Our
business and manufacturing operations are comprised of a diverse spectrum of geographies, cultures and technologies.
A key component of CSR at ON Semiconductor is our commitment to the Responsible
Business Alliance (formerly the Electronics Industry Citizenship Coalition – EICC) as a full
member. We have integrated the RBA Code of Conduct standards pertaining to labor,
environment, health and safety, ethics and management systems into our operations. We
seek to continually improve our compliance with the RBA Code of Conduct, internal standards and other guidelines through ongoing training, risk
assessments, verifications, and corrective actions. We also follow environmental laws, regulations and other social responsibility requirements that are
applicable to our activities and our customers’ products.
Management Approach
Each of our manufacturing locations have CSR working team members from supply chain, human resources, the corporate compliance and ethics
program, facilities and environmental, health and safety (EHS) who are led by CSR site champions. Together, the CSR site champions and working teammembers operationalize a robust CSR management system, compliance program and CSR activities. Regional CSR subject matter experts also support
our CSR site champions.
Our CSR steering committee, comprised of leaders from CSR, quality, legal, supply chain, human resources, and EHS ensure that a sound management
system is established, implemented and maintained in accordance with the RBA Code of Conduct, internal standards and other guidelines determinedby the organization. Regular review meetings with corporate staff ensure that our strategy continues to be suitable and effective for our growing
organization.
Through collaboration and engagement with other RBA members, ON Semiconductor is committed to continual improvement in the field of CSR.
We are actively engaged with the RBA through workgroups focused on the RBA Validated Audit Process (VAP), Conflict Minerals, Indirect Spend andEnvironmental Sustainability.
Training
Along with completing annual CSR training each year, CSR working team members complete at least one training course per quarter on CSR. The
trainings provided relate to the RBA Code of Conduct and customer social responsibility standards. In 2017, CSR working team members completed
training on topics such a transparency and ethics, working hours, and corrective action plans.
Page 12

Corporate Social Responsibility ReportWe strive to maintain a steady pool of internal auditors who can assist in validating if our operations and that of our suppliers’ meet RBA standards.
In 2017, a total of 28 employees completed the RBA Verité Labor & Ethics Lead Auditor training through classes held in Carmona, Philippines andPhoenix, Arizona. The training provided competencies necessary to successfully perform RBA VAP audits through topics such as social systems auditing,investigative skills, management systems, validation and reporting.
Risk Assessments
Each year, our manufacturing facilities complete the RBA self-assessment questionnaire (SAQ). The SAQ requires responses to over 100 questions
related to labor, environment, health and safety, and management system standards. The target score for each of our facilities is 85% or greater,
indicating no to low risk. In 2017, 20 out of 21 facilities met this target. Any facilities that receive a score lower than 85% work to understand andremediate any issues that are considered risky.
Outside of our responsibilities as a RBA member, we assess other risks related to our own operations. All manufacturing locations were initiallyconsidered when risk was assessed and continue to be assessed at an ongoing basis. Since we sell our products around the world, the risk assessment
is based on location and types of customers.
While there are no significant risks that were identified, some areas presented a greater risk than other areas. In assessing the risks related to corruption,a major factor is the ranking of the country in which our factory is located according to the Transparency International Corruption Perceptions Index.
For the 10 countries in which we have factories, two countries were in the lower half of the 2017 country rankings – the Philippines (ranked 114) and
Vietnam (ranked 113). Additionally, we have a greater risk with customers in China (ranked 80) because a number of electronics manufacturers arestate owned enterprises and their employees are considered government officials under the U.S. Foreign Corrupt Practices Act.
Verification and Corrective Actions
We verify the results of our SAQs by conducting internal audits and RBA VAP audits on our manufacturing sites.
Internal audit frequencies are based on previous assessments, risks to the organization, state of findings, andsignificant updates to procedures. Nonetheless, all facilities must be audited internally at least once every two years.
In 2017, we scheduled and completed RBA VAP audits for 13 facilities and internal audits on 11 facilities. By theend of 2017, all facilities from the Fairchild Semiconductor acquisition completed both internal and RBA VAP audits
in order to recognize and address any gaps in CSR management system integration.

Two sites scoredfull points in their2017 RBA VAP
auditsOur company adheres to the same process and timeline to address non-conformances through corrective actionplans as the RBA. For each non-conformance, root cause(s) must be identified using problem solving methods
and containment actions must be implemented for certain non-conformances. In 2017 we recognized the need to further engage our on-site service
providers on RBA compliance. Along with developing additional risk assessment tools and auditing more of our on-site service providers, we also
volunteered to pilot the RBA’s Indirect Spend SAQ targeting contract labor and facilities management vendors.

ON Semiconductor

Page 13

Responsible Sourcing[G4: 102-9 – 102-10] [G4: 204-1] [G4: 308-2] [G4: 414-2]

Our supply chain has a multifaceted supply structure of direct materials suppliers, foundry and subcontractor providers, indirect material suppliers
and professional service providers deployed across a global sourcing and procurement organization. In 2017 we worked with over 8,000 suppliers
and service providers in North America, Asia Pacific, Europe and the Middle East of which approximately 4,600 were production-related. The various
categories of suppliers are managed through both centralized strategic sourcing organizations and site procurement teams.
The following graphic shows what percentage of our manufacturing sites’ procurement budgets were spent on suppliers local to the site’s region in2017.

ON Semiconductor’s Spend on Local Suppliers by Region (%)
91

90

94

92

82
77

Asia-PacificNorth America
2016

EMEA

2017

Data presented is as of December 31, 2017. 2016 data does not include Fairchild Semiconductor.

Setting Expectations
We expect that our suppliers and on-site service providers follow the same CSR tenets that we have set for our own operations. We clearly communicate
these expectations to new and existing suppliers and on-site service providers. New suppliers and on-site service providers agree and comply withON Semiconductor’s Code of Business Conduct and the RBA Code of Conduct as communicated in ON Semiconductor’s Supplier Handbook andservice agreements. Every other year we reengage our major corporate and site-level suppliers, based on spend, to re-sign ON Semiconductor’s CSR
Statement of Conformance related to our Code of Business Conduct and the RBA Code of Conduct. As an indication of their agreement, over 300 of
our key suppliers re-signed ON Semiconductor’s CSR Statement of Conformance and RBA Code of Conduct in 2017. Forty-four of these key suppliers
were our top corporate suppliers while the remaining were our top site suppliers.
Risk Assessments
We also engage major corporate and site-level suppliers based on spend to complete risk assessments through the RBA SAQ every other year. While
corporate suppliers must provide a SAQ, completing risk assessments is optional, but highly encouraged, for top site suppliers. In total, 42 corporate
suppliers submitted a 2017 SAQ to ON Semiconductor and none were high risk as per their scores.
Training
In the spirit of continuous improvement and to remain actively involved in our supply chain, we offer complimentary training on the RBA Code of
Conduct to our suppliers and on-site service providers. Any supplier that is deemed medium or high risk through the RBA SAQ is given training on the
RBA Code of Conduct and auditable standards. Additionally, in-person training was provided during an integration summit with subcontractor suppliersin Malaysia in October 2017. Management and contract workers of our on-site service providers who are present at ON Semiconductor facilities andmeet our internal training requirements are provided courses on the RBA. Since 2016, over 100 individual on-site service provider companies havecompleted training on the RBA Code of Conduct.
Page 14

Corporate Social Responsibility Report

Verification and Corrective Actions
As per RBA requirements, 25% of our high risk suppliers are audited every other year against the RBA Code of Conduct. If no high risk suppliers are
identified during the supplier engagement project, ON Semiconductor will audit certain medium risk suppliers as per their SAQ responses. We work
closely with our suppliers to ensure that root cause analysis is performed and that preventative and corrective actions are implemented in a timely
manner.
Conflict Minerals in Our Supply Chain
As a purchaser of products containing the metals tin, tantalum, tungsten or gold (conflict minerals) from suppliers for use in our manufacturing process,we continue to be concerned about the reports of violence and human rights violations resulting from the sourcing of such metals from the Democratic
Republic of Congo (DRC) and adjoining countries.
Conflict minerals are obtained from sources worldwide, and we do not desire to eliminate those originating in the DRC and adjoining countries.
However, we are committed to ensuring conflict free sourcing of minerals from our supply chain through collaboration with our suppliers. As a memberof the RBA, we also participate in the Responsible Minerals Initiative (RMI) (formerly known as the Conflict Free Sourcing Initiative – CFSI) which began
as a joint effort between the RBA and Global e-Sustainability Initiative (GeSI). Being a member of the initiativerequires that members engage in reasonable due diligence with their supply chain to assure such minerals are not
99.6% ofbeing sourced from entities supporting armed conflict within the DRC and adjoining countries. We also recognize
smelters used
the importance of supporting responsible mineral sourcing from the DRC and adjoining countries so as not towere RMAP
negatively impact the economies of those countries.

compliant in

We expect our suppliers to engage in due diligence to analyze their sources and to complete the RMI Conflict
2017
Minerals Reporting Template (CMRT). Suppliers must ensure that all minerals sold to or used to manufacture
products for use by us originate from certified conflict free smelters validated as compliant by the Responsible
Minerals Assurance Process (RMAP) protocol. This global initiative utilizes an independent third party to evaluate a smelter’s procurement activities anddetermine if the smelter demonstrates that minerals they processed originated from conflict free sources.
Each year, we target 100% RMAP compliant smelters. However, supplier conformance and incorporation of new requirements are an on-going process
and we will continue to review and update our information as necessary. If we become aware that our supply chain includes uncertified minerals
sourced from a conflict region, we will take action to promptly review the circumstances and remedy the situation as appropriate.
Please see our latest SEC form SD for more information.

RMAP Compliant Smelters (%)
98

99.6

2016

2017

89

53

2014

2015

RMAP: Responsible Minerals Assurance Program

ON Semiconductor

Page 15

Recognition
RBA Validated Audit Process (VAP) Platinum Status
Two of our facilities, namely, South Portland in Maine and our front-end manufacturing site in Seremban, Malaysia received the highest level ofrecognition through platinum status awards for full RBA VAP audit scores of 200 in 2017. The recognition demonstrates ON Semiconductor efforts,
commitment and leadership in CSR.
Ecovadis
EcoVadis is an online CSR platform that measures the quality of a company’s CSR management system through its policies, actions and results. The
assessment is based on four themes including environment, labor practices, fair business practices and sustainable procurement.
In October 2017, we completed our fourth EcoVadis assessment and achieved an outstanding score of 85 out of 100. Since the company’s lastassessment in August 2017, we achieved a ten point increase in its overall score. The outstanding score ranks ON Semiconductor in the top 1 percent
of 150 companies in our category and signifies:• A structured and proactive CSR approach• Engagements/policies and tangible actions on issues withdetailed implementation information• Comprehensive CSR reporting on actions & KPIs
• Innovative practices and external recognition
Barron’s 100
ON Semiconductor was ranked 42 on Barron’s list of 100 Most Sustainable Companies in the U.S. in 2018.
Other Awards• Best of ON Semiconductor Employer by MoorElite Technology – 2017 Top 10 Social Responsibility

Page 16

Corporate Social Responsibility ReportPRINCIPLES

ON Semiconductor

Page 17

OUR GOVERNANCE AND ETHICS“As a Fortune 500 and one of the World’s Most Ethical companies, we believe that improving
diversity and inclusion in the work place enhances our company performance and ability to sustain
our persistent commitment to compliance and ethics. Embracing diversity ofpeople and thought is also a catalyst for creativity and innovation in today’s highly
competitive global marketplace. With a strong foundation and ethical culture, ourgoal is to support an environment where employees share our company’s values
and create a sense of purpose and passion for all the communities that we serve.”
Sonny Cave, Executive Vice President, General Counsel, Chief Compliance and Ethics Officer, Chief Risk Officer and Corporate Secretary

Overview[G4: 102-18] [G4: 405-1]

All business conducted at our company by employees, managers and officers is under the direction of the CEO and the oversight of the Board of
Directors. The Board has at least four scheduled meetings annually at which the Board and its various committees review and discuss reports bymanagement and the performance of the company. Our corporate governance principles further set forth certain requirements under which the Boardand management operate.
Board of Directors Summary
Report Overview
Total board size

9

Independent directors

8

Women on the board

1

Age limit

75 years old

Board breakdown by age and genderF – 1; M – 8
Age: 55, 56, 60, 62, 62, 62, 64, 69, 70

Number of board meetings annually• Audit committee

Quarterly at minimum• Compensation committee

Twice per year at minimum• Corporate governance and nominating committee

Twice per year at minimum• Executive

As deemed appropriate• Integration oversightAs deemed appropriate• Science and technology

As deemed appropriate

Taxes paid to government

Page 18

See 2017 Sec Form 10-K

Corporate Social Responsibility ReportCorporate Compliance and Ethics Program

iqu

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Ethiek࡬չЕ    

Corporate Compliance and Ethics Program

a

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Etika

Đạ

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Management Approach

L‘éth

k

Ethics is a top-down and a ground-up process at ON Semiconductor. Every team member is empowered
to talk about ethics, raise concerns, and share their experiences. Our CEO sets the tone at the top
by communicating our compliance and ethics expectations and holding our managers accountablefor delivering on those expectations. Our team members are empowered and encouraged to reportpotential concerns and to recognize extraordinary commitments to our core values.

ics

hi

In 2018, we reinforced our commitment to compliance and ethics by growing our program across theglobe. We added new leadership to our CCEP in the form of a dedicated senior director and began theprocess of adding new Compliance and Ethics Liaisons (CELs) across the globe, with a goal of having
at least two liaisons at every manufacturing site globally. This growth coincides with the continued
growth of ON Semiconductor and reflects our commitment to assuring an ethical culture throughout
our expanding global operations.

Eth

Et

At ON Semiconductor, compliance and ethics goes beyond understanding what we have a right todo because what we have a right to do is not always what is right to do. Our core values guide
every aspect of our business. Respect, Integrity, and Initiative are not slogans; they are our guiding
principles. We measure ourselves against these guideposts through our Corporate Compliance andEthics Program (CCEP).

We have40 CELs at
our sites
globally

Our CCEP is designed to assist ON Semiconductor prevent, detect and respond to unethical or illegal
conduct and promote an ethical and legally compliant business culture. To do this, compliance andethics is ingrained at every level of the company from the Board of Directors and the CEO to each individual employee.
The Audit Committee of the Board regularly oversees and reviews the company’s CCEP and supported the addition of a dedicated senior leader for thecompliance and ethics organization in 2018. Today, there are three full-time employees dedicated to the program. These professionals are supportedby the Corporate Compliance and Ethics Committee, six Assistant Compliance and Ethics Officers, and a growing network of compliance and ethics
liaisons located in our worldwide locations. On a regular basis, our Corporate Compliance and Ethics Officer and his team update the Audit Committeeof the Board, and as necessary the full Board of Directors on individual incidents and the overall operation of the program.
Through quarterly calls and annual meetings, members of the CCEP, including CCEP committee members and compliance and ethics liaisons, review
case studies and share best practices, receive training, and discuss trends in the compliance and ethics field. These communications help keep the
program focused and help assure program consistency across the globe and throughout the layers of the organization.
The CCEP provides a procedural framework for enhancing and monitoring our compliance with the Code of Business Conduct, the policies referenced in
the Code and other rules or regulations governing the company and our worldwide operations. Additionally, the program is structured to comply with,among other laws and regulations, the requirements of the Sarbanes-Oxley Act of 2002, the Foreign Corrupt Practices Act of 1977, the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010 and the Listing Rules of NASDAQ Stock Market, Inc.

Progress
Our employees trust the program and the process. ON Semiconductor put a formal non-retaliation policy in place in 2015. Within a short period oftime, employee awareness and trust in the policy is strong. More than 87% of employees believe ON Semiconductor follows and supports its policy on
non-retaliation against those who report actual or suspected misconduct in good faith. Even more telling, over 84% of our employees believe their
manager follows and supports our policy on non-retaliation against those who report actual or suspected misconduct in good faith.
ON Semiconductor

Page 19

While these numbers represent the majority of our employees, it is our goal to continuously
improve the CCEP as measured by the trust our employees have in the program itself as wellas the process. We believe employees trust in the program is best represented by their trust in
our non-retaliation policy. Employees who trust that reporting concerns pose no threat to them
personally or to their careers are more likely to speak up. Ensuring a speak-up culture is criticalto the success of the CCEP.
Another indicator of trust, is the utilization of the CCEP reporting channels. Employees haveaccess to a number of reporting channels, including local compliance and ethics hotlines, a teamof 40 local Compliance and Ethic Liaisons currently, members of the Compliance and Ethics
organization and direct access to Assistance Compliance and Ethics Officers as well as the Chief
Compliance and Ethics Officer.
The utilization of compliance and ethics liaisons gives employees a peer to whom they can raisepotential concerns outside of Human Resources and their management chain. The availability ofthis additional reporting channel helps our company integrate compliance and ethics into ourculture.

Compliance and Ethics Allegations& Requests for Advice
157
Total numberof allegations

101
126

49
Requests foradvice

36
36
2017

2016

2015

Anonymity of Reports
62
Anonymous
reports

39
39

Source of Reports
95

102

Non-anonymous
reports

73

62

61

62

48
24 24

22
12 10

CCEO

3

1

21

Assistant CCEO

CEL

Hotline201725

10 11 10

12

Human reources

Security

5

2016

2017

3

8

Legal

4

7

9

2016

2015

4

Other

Allegations Substantiated

2015

62

The majority of concerns come into the CCEP via compliance and ethics liaisons. The importanceof this channel is driving our expansion of the compliance and ethics liaison network. Among
our goals with this expansion is to provide a balance of male and female compliance and ethics
liaisons so that all employees have access to a liaison with whom they can relate and feel safe.
Not all employee chose to report concerns directly to liaisons, human resources, or their
management. Some employee prefer to remain anonymous. In these instances, employees may
use the Ethics Hotline, which is available by phone, toll-free, 24 hours a day, seven days a week.
Translators are available in all languages where we do business. Alternatively, questions andreports may be made to the Ethics Hotline online. Except as restricted by law, employees may
make reports to the Ethics Hotline anonymously. As with reports made in person, our company
makes it clear to employees that there will be no retaliation against anyone who raises a concern
in good faith.

Page 20

Non-substantiatedrerports

53
50

Substantiatedreports

48
52
2017

2016

2015

Data presented is as of December 31, 2017.

50% of reports
came throughCELs in 2017

Corporate Social Responsibility ReportEthics Hotline
U.S.: 1-844-211-7380
All other locations: Click on the link below for country-specific instructions.
Online: hotline.onsemi.com

ON Semiconductor

Page 21

Awareness[G4: 205-2] [G4: 412-2]

Code of Business Conduct
Our company’s Code of Business Conduct is a critical part of our CCEP. The Code embodies legal
and ethical business conduct embraced by our company. We require our employees to apply the
Code of Business Conduct to their day-to-day business dealings and activities that relate to thecompany. It is available for employees to review in 14 languages, making it easily accessible toemployees in all regions where we do business.
The Code of Business Conduct is reviewed annually by our legal teams. Every year, we require theBoard of Directors and all employees to read and comply with the Code of Business Conduct andtake a related online training.

Complianceand Ethics
Training

Compliance,
Ethics, andCSR Week

Targeted
Compliance andEthics Training

Every other year, we also require managers and other select individuals to complete additional
compliance-related training courses such as anti-corruption, anti-harassment, anti-discrimination,and other topics.

2017 Compliance Training

100% of our employees

Highlights

Conduct, Corporate Social

completed Code of BusinessResponsibility and Information
Security Awareness trainings.

The total number of employees
assigned Anti-Harassment andAnti-Discrimination training
make up approximately
one-third of our total employee
population. 100% of theemployees assigned the training completed it.

The employees assigned toAnti-Corruption training make up
approximately 10% of our total
employee population. 100% of
the employees assigned thetraining completed it.

Global Compliance, Ethics and CSR Week
Every year, we celebrate Global Compliance and Ethics Week, which coincides with The Society of Corporate Compliance and Ethics (SCCE) and the
Health Care Compliance Association (HCCA)’s Corporate Compliance and Ethics Week. The event is an opportunity for companies to highlight theimportance of ethics and compliance in the workplace and educate employees further on ethical practices. In 2017, we also included topics related to
CSR to showcase the advancements of both programs and reinforce what employees learn during the annual Code of Business Conduct and Corporate
Social Responsibility training. The week provides awareness, recognition and reinforcement of our Corporate Compliance and Ethics and CSR programs
as well as location-specific learning activities and celebrations.
Page 22

Corporate Social Responsibility ReportPrivacy
In May 2018, the General Data Protection Regulation (GDPR) in the European Union took effect. To align our global processes with this new regulation,
the company appointed a Chief Privacy Officer and undertook a thorough review of corporate policies and practices to assure compliance to this new
privacy standard. Targeted privacy training was administered to global functional teams most directly impacted by GDPR, including information
technology, finance, human resources, procurement and legal. Additionally, all employees will receive privacy awareness training to increase individual
sensitivity to the importance of protecting private data.

Public Policy and Activities
We support public policies that encourage the innovation, investment and open markets necessary to advance the company’s vision of driving energy
efficient innovations that empower customers to reduce global energy use. Our public policy program reflects our profile as a global company that is
headquartered in the United States, interacting regularly with government agencies around the world. Much of the company’s public policy advocacy
is performed through the U.S. Semiconductor Industry Association (SIA), although our company is also a member of local associations in the regionsin which we operate.
We are an active participant in the World Semiconductor Council (WSC), an organization composed of the world’s leading semiconductor industry
associations from China, Chinese Taipei, Europe, Japan, Korea and the United States. The organization meets annually at the CEO level to makerecommendations to governments 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.
Among the public policies that we supported in 2017 were the following:• Open markets – In December 2015, trade ministers from over 50 countries agreed to expand the Information Technology Agreement (ITA) andthereby eliminate tariffs on approximately $1.3 trillion in annual global exports of information and communications technology products, thus
lowering the cost of these products for consumers. The original 1996 ITA eliminated tariffs on semiconductors, computers and telecommunications
equipment, but with the explosion of global trade in IT products and with technology advances creating products that did not exist in 1996, theneed to update the ITA became increasingly paramount. In 2017 the semiconductor industry sought to add new countries to the ITA expansion
agreement as well as press for the immediate elimination of tariffs on Multi-Component integrated circuits by those counties that benefit fromfree trade yet have long tariff elimination phase-in times.
• Tax reform – We supported the semiconductor industry’s efforts to ensure that U.S. corporate tax rates are competitive with other countries, thatoverseas income is taxed on a territorial basis rather than on a worldwide basis, that the tax Code is simplified to reduce compliance costs, andthat the tax code promoted R&D. We also sought rules that avoided harmful transitions from the current system such as allowing companies
appropriate transition rules on any limitations to the deductibility of interest. The industry was fully or partially successful on many of these
positions.
• Stopping counterfeit semiconductors – Counterfeit semiconductors are unreliable and can fail at any time. The semiconductor industry has foundcounterfeits in air bags, train braking systems, and other applications where a failure can have serious health or safety consequences. In 2017, we
assisted law enforcement to identify and prosecute brokers of counterfeit goods.

Political Contributions
In the U.S., companies and other organizations are allowed to organize Political Action Committees (PACs) to support political candidates withfunds voluntarily contributed by qualified employees. Our company has chosen not to have a PAC and did not make any political contributions in thecompany’s name in 2017.

ON Semiconductor

Page 23

Recognition
A 2018 World’s Most Ethical Company
We are very pleased to be counted among the World’s Most Ethical Companies for a third year in row. We remain only one of six companies recognizedin the electronic components and semiconductors category.

ON Semiconductor named

World’s Most Ethical Company
three years in a row!

“Our company’s ability to consistently demonstrate ethical operations andculture in a fluid semiconductor industry remains critical to our business
operations. Leveraging our ethical practices based on key factors of integrity andaccountability, is one our differentiators.”
Keith Jackson, ON Semiconductor President and CEO

Page 24

Corporate Social Responsibility ReportTALENTON Semiconductor

Page 25

OUR PEOPLE“At ON Semiconductor, we believe our company’s vision, mission, core values andethical culture are the foundation for employee success. We are committed tocultivating a workplace where diversity and inclusion is embedded in everything
we do. Employees are developed and empowered to work together as one global
team treating each other with respect and integrity while enabling an environment
where initiative can flourish. By leveraging the diverse experiences, knowledge,
cultures, customs and backgrounds of our global employees, ON Semiconductor willcontinue to meet and exceed the expectations of our key stakeholders – employees,
customers, suppliers, our communities and shareholders.”
Tobin Cookman, Senior Vice President, Human Resources

Overview[G4: 102-7]

Our global community of employees is based in locations around the world with major facilities in the U.S.,
Belgium, Canada, France, Ireland, Slovak Republic, Czech Republic, Japan, Korea, China, Malaysia, Vietnam and
the Philippines. As of December 2017, we had over 34,000 employees globally.

Management Approach

Worldwide Workforce
by Region
11%

14%

Our human resources group’s mission is to deliver value-added, global talent solutions that reinforce ourcompany’s strategy, core values and commitment to an ethical and diverse culture. Human resources strategicallypartners with the business to continuously improve employee engagement, talent development and succession,
talent acquisition and retention, rewards and systems and processes.
The human rights and workplace rights of our workers, as stipulated under the RBA Code of Conduct andlocal laws and regulations, are monitored and managed collaboratively through our CSR, EHS, legal andhuman resources groups. We adhere to human rights-related standards including freely chosen employment,anti-human trafficking, prohibition on child and young labor, non-discrimination and anti-harassment, among
others. Our CSR site champions and working team members engage in quarterly key performance indicator
reporting on labor, ethics and health and safety metrics. Each quarter, our manufacturing sites report violations
to ON Semiconductor’s working hour policy with regard to a maximum of 60 hours and one day of rest per week.
Additionally, breaches to our compliance training policy are reported on a quarterly basis and reviewed by our
executive staff.
Page 26

75%
Americas

Asia

EMEA

Data presented as of December 31, 2017.

Corporate Social Responsibility ReportCommitment to Diversity[G4: 405-1]

We have long remained committed to diversity and inclusion, recognizing thatthe company is at its strongest when it effectively draws upon the wide variety ofexperiences, knowledge, culture, customers and backgrounds from all employees andleaders. As a company, we celebrate differences and promote an inclusive environment
by valuing the contributions of our employees. Our knowledge of diversity goes beyond
race, ethnicity and gender. Diversity is about understanding and embracing the uniquedifferences, talents and perspectives of employees, customers and suppliers. Diversityof thinking helps us continue to encourage the creativity and innovation necessary for

Hispanic or Latino
4.2%

us to maintain a competitive advantage in the global marketplace.

Black orAfrican American
1.4%

White
64.1%

We believe our company’s vision, values and culture afford opportunities for everyone
to make a difference in building a successful global business. We are constantly
striving towards a more diverse workplace which benefits our company and enables
us to more successfully meet the needs of all our stakeholders – customers, suppliers,
employees and shareholders worldwide.

Two orMore Races
0.7%

Asian
15.4%

In 2017, we started the process of benchmarking our internal perceptions of diversity
and inclusion practices. As part of this effort, we utilized the Global Diversity andInclusion Benchmarks model to launch a survey as part of our plan for internalbenchmarking. In addition to the survey launch in 2017, ON Semiconductor joined

Native Hawiian or
Other Pacific Islander
0.4%

American Indianor Alaskan Native
0.3%

a Workplace Diversity Dialogues series at the Markkula Center for Applied Ethics at
Santa Clara University that focuses on the role of diversity and inclusion in relation to

Undeclared
13.7%

Data presented is as of December 31, 2017.

ethics in Silicon Valley and beyond.
Diversity and Inclusion Initiative Framework, Vision and Mission
ON Semiconductor’s Diversity and Inclusion Initiative operates with the vision and mission of cultivating a culture

Worldwide Workforce
by Gender

where diversity and inclusion is embedded in everything we, as a company and as employees, do. The Diversity andInclusion Initiative follows a framework of workplace inclusion, workforce diversity and community partnerships.
47%

With these guiding principles directing the initiative, we continue to expand our positive impact on the greatercommunities surrounding the places in which we work.

53%

To further these efforts, our company hired its first full time diversity and inclusion professional to focus on fostering thecompany’s Diversity and Inclusion Initiative. With this initiative, global strategies and programs are being developed

Managementby Gender

to focus on areas such policies and practices, development and training, and gender and ethnicity representation.
One specific program, ‘Breakthrough Leadership’ focused on advancing women at ON Semiconductor was piloted
this year and we plan to implement it across the globe in 2018. Our Diversity and Inclusion efforts have been

20%

intentional in launching first in North America and in 2018 we plan to roll-out globally in Asia and EMEA regions.
We also hosted our first Diversity and Inclusion week which included site based activities and messaging across thecompany’s North America locations.
ON Semiconductor

80%
Data presented is as of December 31, 2017.

Page 27

Senior Leaders Diversity and Inclusion Council
The Senior Leaders Diversity and Inclusion Council is a governing body that provides leadership, direction and support to make us a more diverse andinclusive company. Through the Council, we continued to support the Women’s Leadership Initiative, STEM UP (science, technology, engineering andmath for underrepresented populations) and approved a new affinity network group, Cultivate. These groups help facilitate networking, mentoring,
cultural awareness, encourage recruitment, provide employee development and retention along with increased
collaboration and innovation. Charters for all of the affinity network groups align seamlessly with our corevalues and the Diversity and Inclusion Initiative’s framework.

Women’s

Leadership

We strongly believe a commitment to diversity and inclusion is a commitment to all employees as well as awinning business strategy. For us, this means that employees are empowered to make decisions, coworkers
treat each other with dignity and respect and all people including customers, suppliers and the communities
we come into contact with are valued.

Women’s Leadership Initiative
In the spirit of employee development and in combination with diversity recognition, our Senior Leaders Diversity and Inclusion Council has been
expanding the Women’s Leadership Initiative since its inception in 2014. While beginning with the corporate office location, we have held events
across the globe.
The founding charter for the Women’s Leadership Initiative is “empowering and supporting women to succeed through professional development inbusiness, strategic and financial acumen.” To uphold this charter the following goals and objectives were established:• Create opportunities to develop and demonstrate business, strategic and financial acumen• Provide mentoring best practices as well as access to formal and informal mentors/coaches• Create networking opportunities both internally and externally to expand business and market perspectives• Encourage female leaders to develop and promote the next set of female leadership• Openly address and discuss unique challenges and potential “tools” to overcome those challenges
In partnership with the Diversity and Inclusion team, our Women’s Leadership Initiative has held multiple events focused on the importance of business,strategic and financial acumen as a critical component for advanced career success. Events have been held in Seremban, Suzhou, Bucheon, Piestany,
Roznov, Pocatello and Gresham with additional events planned in California, Phoenix, the east coast, Vietnam, Singapore and the Philippines.

STEM UP
Our second affinity network group, STEM UP, was launched in February 2016. STEM UP
works with groups like the Women’s Leadership Council, human resources, the employee
activity committee and the general employee population to develop and retain a diverse
workforce which positively affects our company’s outcome with regard to innovation and performance. The key drivers or focus area of STEM UP are:
• Recruitment – In 2017, we attended the National Society of Black Engineers Conference, theSociety of Hispanic Professional Engineers Conference and the American Indian Science andEngineering Society Conference to attract talent from diverse population groups.
• Retention – A key element of STEM UP is the ambassador program which strives to integrate
new hires into the company and provides them with a strong support system throughresources and networks. New hires are paired with an ambassador who provides guidance andsupport to the new employees to become acclimated to the company and local area. Throughthe ambassador program, we aim to promote a more engaged employee base.
Page 28

Corporate Social Responsibility Report• Service Learning – STEM UP works with schools in Phoenix, Arizona to host educational site tours where students learn about
ON Semiconductor, STEM fields and the opportunities working for a global corporation can provide. We worked with several local schools andcharitable organizations to serve and inspire children from under-represented populations throughout 2017.

Cultivate
Cultivate’s mission is to unite a group of diverse generations who are committed to engaging in theworkforce and enhancing our collaborative company culture. Cultivate is committed to understanding
all generations in the workplace and connecting our employees with development and workforce
community activities. The expansion of our affinity network groups serve as a resource for ourcompany and employees to foster a multicultural workplace aligned with our organizational mission, values, goals, business practices and objectives.
Equal Employment Opportunity
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 prohibited by federal, state and local laws and regulations. By way of example, discrimination on the basis of race,color, religion, ancestry, national origin, sex, age, marital status, sexual orientation, disability, medical condition, genetic information and status as aVietnam-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 andtermination. Equal opportunity can only be achieved through leadership, commitment and implementation of our diversity and affirmative action
programs.

Looking Forward: Executive Bonuses and Diversity and Inclusion
Cash bonuses under ON Semiconductor Bonus Program include four performance components starting in 2018. One of thesecomponents, weighing eight percent is based on achievement of certain hiring and promotional goals designed to increase the
racial and gender diversity of our company’s employee population.

ON Semiconductor

Page 29

Recruitment and Retention[G4: 401-1]

We proactively seek new candidates to add to our innovative and customer-oriented organization. We continually look for talented candidates
who desire challenging, empowering and engaging careers. To further diversify our workforce, we recruit university graduates and candidates fromunderrepresented groups who bring various perspectives and diverse knowledge to the company.
We strive to create an environment in which our employees are supported, engaged and committed. We drive programs to foster higher levels of
employee engagement and reward our employees well in order to reduce global turnover. In 2017, we saw an increase in global voluntary turnover
due to the recent acquisition of Fairchild Semiconductor and strong competition for talent in Asia.
New Hires by Gender and Age
AmericasAsia<30 years: 175
30-50 years: 227
50+ years: 92<30 years: 71
30-50 years: 85
50+ years: 45

EMEA<30 years: 2,185
30-50 years: 831
50+ years: 30<30 years: 2,517
30-50 years: 678
50+ years: 6<30 years: 177
30-50 years: 193
50+ years: 72<30 years: 72
30-50 years: 140
50+ years: 24

Internal Transfers and Promotions
In addition to our external recruiting efforts, we look within the company for new ways that current talent can contribute to our operations. We support
transfers and promotions so employees can gain further experience while taking on a new role or responsibility locally or globally.

Voluntary Turnover by Region

Promotions Globallyby Gender

Transfers Globallyby Gender

12.4%
9.6%
7.4%

7.4%

8.9%

8.6%
7.5%

Americas

Asia

27%

35%

5.5%
2017
2015
2016

3.6%

65%

73%

EMEA

Data presented is as of December 31, 2017.

Professional Training and Career Development[G4: 404-2]

We are considered among best-practice companies as our investment in professional development opportunities continues to grow. Our employee
learning and development programs equip employees with the skills necessary to complete their work safely, ethically and efficiently, while also
ensuring that our critical talent pipelines can meet future needs.
All new employees go through new employee orientation to familiarize them with all aspects of the company, including operations, strategies andexpectations. The training also covers environmental health and safety awareness, CSR as well as our expectations for ethical conduct.
Page 30

Corporate Social Responsibility ReportIn 2017 we have continued to enhance our career development program as a result of our 2015 Employee Engagement survey to include the following:• Career development training for managers and employees• Streamlined career ladder guidance for operations, technicians and professionals• Developed a career ladder model that will:n Broaden skill base to promote career development and enhancementn Create awareness for how to make logical job transitions
n Improve perspective on range of jobs available to you

Enhance your decision-making abilities about your career
Increase job satisfactionn Increase earning potentialnn• Provide comprehensive guidelines, tools, training and supplemental programs to support employees in their development and career advancement.
Skillsoft Leadership Advantage
Skillsoft Leadership Advantage is comprised of eight leadership topics including leading strategic ability, managing, self-management, talentmanagement, working with others, analytical skills and business acumen. In June 2016, our organizational development team, in partnership with
Skillsoft, expanded the availability of cutting-edge professional development offerings by 200 percent. This allowed an additional 4,000 employees
to have the opportunity to attend eLearning courses, read best-selling business summaries and watch lectures by the most influential leaders aroundthe globe.
Lean Six Sigma
Our Lean Six Sigma (LSS) program uses a structured methodology to improve business processes by combining
two approaches: Lean and Six Sigma. The program includes a five step roadmap called DMAIC (Define, Measure,
Analyze, Improve, and Control). When applied correctly, LSS improves quality, reduces cycle time, decreases costand increases customer satisfaction. We deployed LSS companywide in early 2015 and made significant system
improvements compare to previous deployments. Improvements include:• Online tracking of LSS projects, project approval, candidates and certified belts• Online exams• Comprehensive training curriculum for all employees including manufacturing associates, indirect employees,
managers and senior leaders• Financial benefit tracking

ON Semiconductor

250 employees
trained and 83
employess certified
93 projects
completed

Page 31

Executive Round Table Program
The global Executive Roundtable Program launched in July 2017 to support the 2015 engagement survey corporate initiatives around communicating
corporate strategy and career development. Each event consists of eight to 10 pre-identified employees and a visiting executive. The event provides anopportunity for employees to share recent high impact projects and to company strategy. The program also gives visiting executives the opportunity tomeet employees around the world. Executive Roundtable sessions occur in each region, every quarter.

Professional
Development

2017 Global Learning and Development

Integrated core competencies
into our performance
management
process andcareer ladders

Highlights

Desktop Skills
Expanded courses to include
Business Application andGraphics and Design Courses

Course Offerings

More than 500 courses in basic, advanceand expert levels of learning

More than 500 business courses in over 20 categories including:• Business Analysis• Global Business

Instruction Lead
Training• Professional Effectiveness• Strategy and Innovation• Technology in Business

Held over 20 professionally
led courses covering topics such as
Situational Leadership, Critical
Conversations, Project Management andStrategic Thinking

Educational Assistance
We offer an educational assistance program to encourage employees to increase their technical competence and deliver value-added contributions
toward company objectives by pursuing professional development through continued education. Employees may receive assistance for courses,
certification programs and degrees for furthering their formal education.

Looking Forward: National Merit ON Semiconductor Scholarship
Beginning with the high school graduating class of 2018, ON Semiconductor will partner with the National Merit Scholarship
Corporation to fund National Merit ON Semiconductor Scholarships for finalists that are dependents of ON Semiconductor
employees in the United States.

Page 32

Corporate Social Responsibility ReportEmployee Engagement
Our company conducts surveys to measure the level of employee engagement and to gain employee perspective on potential improvement points.
We deployed our biennial, global employee engagement survey through the National Business Research Institute in September 2017. The survey
provided all of our employees the opportunity to confidentially communicate feedback regarding our work environment, work relationship and job
responsibilities and career. Over 26,000 employee contributed to the survey and we reached a participation rate of 79%, exceeding our goal of 70%.
Overall, our 2017 company employee engagement score is measured to be at the 65th percentile compared to the industry average, stretch performance,and best in class. Compared to our previous employee engagement survey, we saw a four point increase.

30% of the 96 multi-ratequestions increased
significantly, at least 5
percentiles

2017 Employee
Engagement Survey

85% of job functions increased inscore, 5 out of 13 increased significantly

Highlights

100% of topics increased in score

79% of our employees participatedfrom the 2015 survey, 5 out of the
15 increased significantlyin the employee engagement survey
exceeding our goal of 70%

In October 2017, Employee Action Team Members from several cross-functional global teams collected recommendations from employees for
improvement against survey results. Top recommendations will be translated in actionable items for 2018 and beyond.

Recognizing our Employees
In order to recognize individuals and groups who make clear differences to our company and stakeholders, we offer our employees a variety of rewardand performance recognition programs including competitive base salaries, performance based cash and equity awards, an employee stock purchaseplan (subject to location), comprehensive health care plans and company contributions to retirement plans to ensure our employees have the means
to adequately prepare for life after ON Semiconductor.
Performance Management[G4: 404-3]

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 and objective performance management process by setting clear performance expectations, delivering regular feedback,identifying career paths and development opportunities, properly evaluating performance and linking it to compensation clearly and recognizing andrewarding top performers. In 2017, all of our employees globally received a performance appraisal.
Award Programs
We encourage our employees to engage in identifying colleagues who have demonstrated exceptional performance in supporting the company’sbusiness strategies, objectives and performance goals. The main award categories include the bravo award, department award, group award, technicalarticle award and science and technology publication award and patent award.
Employee Benefits
To learn more about benefits offered by our company, see our Regional Benefits Summaries online and 2017 SEC Form 10-K.
ON Semiconductor

Page 33

Prevention of Slavery and Human Trafficking
We are aware of and have zero tolerance towards human rights violations stemming from slavery and human trafficking. To prevent slavery and humantrafficking, we have implemented policies, procedures and management systems to ensure that all work at the company is voluntary and that workers
are legally entitled to leave the company without penalty. Our company also ensures that workers are not required to hand-over government issued
identification or work permit originals to our company or any of our labor agents. We train our human resources staff as well as labor agents on thecompany’s practices on anti-human trafficking and conduct on-site verification to ensure compliance. Incidents of slavery and human trafficking arealso verified in our supply chain through the use of risk assessments and site visits.
Our employees and other stakeholders are encouraged to report any concerns they may have on human trafficking through our ethics hotline, theGlobal Human Trafficking hotline at 1-844-888-FREE or emailing help@befree.org.
Please visit our CSR website to learn more about our company’s anti-human trafficking policy statement.

Prevention of Child Labor
Our practice on the use of child and young labor is based upon our global minimum employment age policy. The purpose of this policy is to define
and ensure that sufficient measures and controls are in place to verify the minimum age of individuals working at our company. As a rule, we only
employ individuals who are at least 18 years of age by the first day of employment. The only exception we make is in China, where the minimum age
for employment is 16 years old. To ensure that candidates meet the minimum age requirement, the human resources team engages in due diligence
depending on federal, state, regional and local requirements. The global minimum age policy also describes the process to be followed and protection
afforded to a discovered child laborers.
We apply the same minimum age requirement for employment at our supplier companies and labor agencies. We work to ensure that our suppliers
have the necessary policies, procedures, measures and controls in place through risk assessments and on-site verification to avoid incidents of childlabor within our supply chain.

Health and Safety[G4: 403-2]

Overview
We are committed to providing a safe and healthy workplace and preventing injury and ill health at ON Semiconductor. Health and safety programs
are based on our company’s environmental, occupational health and safety policy and are a priority at each of our sites. We believe that a healthyand safe workplace is vital to the success of our business.
Management Approach
Our environmental, health and safety (EHS) management system ensures that EHS issues are identified, corrected and communicated to management.
We are committed to maintaining and continuously improving our established EHS program. Procedures for our health and safety management system
conform to OHSAS 18001 (Occupational Health and Safety Management System) specifications. ON Semiconductor maintains self-declaration ofconformance by corporate audits and quarterly reviews. In 2014, we implemented an external audit and certification to OHSAS 18001.
Safety Standards and Programs
Our safety standards provide requirements that are applicable to all facilities globally. This global management system allows us to continuously
maintain and improve health and safety work areas. Procedures regarding the following areas are standardized throughout the company, and facility
information is shared with all sites to promote a transparent and reliable culture that further mitigates risk:• Emergency preparedness and response: chemical spills, injury, emergency egress and fire response

Page 34

Corporate Social Responsibility Report• Hazardous materials: shipping, receiving and transporting, accumulation and storage, hazardous waste treatment and decommissioning ofcontaminated chemicals• Industrial hygiene and health resources: heavy metals, ergonomics, hearing conversation, ionizing radiation, laser and radio management andmedical restrictions• Safety: equipment and electrical safety, evacuation program, fire protection, vehicle safety, office and space safety, personal protective equipment
program, drinking water protection, toxic and flammable gases, and process safety management
Since launching our safety culture transformational program in 2015, our manufacturing facilities have actively engaged employees to promote a work
environment in which a “no-harm” philosophy prevails. The safety culture program consists of levels with one being the lowest and five the highest.
Each of the five levels have criteria that sites must comply with in order to progress from one level to the next. Goals within the program are related
to preventing chemical exposure, reducing the potential for accidents, assisting employees in developing healthy lifestyles, and improving training andcommunication.
In 2015, each of our manufacturing sites started at level one. In 2017, most of our sites improved performance to level three, with some even atlevel four. Our target is to achieve or maintain level four performance by the end of 2019. In order to do so, we have organized monthly visits of top
management to sites to discuss and review safety matters with front line employees. Furthermore, we have implemented peer-to-peer assessments at
all sites to eliminate unsafe habits that may result in injuries.
Health and safety is equally important at non-manufacturing sites as it is at manufacturing facilities, even though the number and level of risks mayvary. In 2018, we will launch a pilot safety program in Europe which will then be expanded to other non-manufacturing sites in Asia and North America
in 2019.
Our Progress
In order to continue measuring our performance in the area of health and safety, we use a formula combining leading and lagging indicators:

Zero work
relatedfatalities
2.29 lost work days
per 100 employees. 5%
decrease compared
to 2016

ON Semiconductor

Leading:

Lagging:• Trend of reported and closed unsafe conditions• Trend of injuries• Trend of reported and closed unsafe acts

• Trend of lost work days

• Trend of safety awards per 100 employees• Near misses• Safety culture survey• Evacuations

2017 Health and Safety

Highlights

50% better than Semiconductor
Industry Association (SIA) benchmark
on lost work days per employee

0.99 injury rate
per 100 employees.
3% increase
compared to 2016
<0.02 occupational
disease rate per
100 employees

Page 35

Health and Safety Symposium
Every other year, we host an EHS and Facilities Symposium for sites to share achievements related to safety culture improvements and sustainability
projects. In 2017, employees who are specialists in certain areas provided talks on capital finance, design guidelines and ergonomics while guests
from external companies gave valuable presentations on fire safety, waste water management including recycling and construction laser scanningtechniques.

Health and Wellness Programs
Health and wellness continues to be one of the top priorities of our compensation and benefits group. As a company, we are committed to creating aculture of wellness and nurturing a healthy and productive workforce. Wellness includes many different dimensions including physical health, emotional
health, social, spiritual and financial wellness. Although there is a clear advantage to having a healthy workforce we also believe that leading a healthy
lifestyle is just as important outside of work.
North America
In March 2017, we introduced a new, comprehensive, voluntary wellness program that gives our entire U.S. employee population a variety of tools
and incentives that support healthy decision-making. Employees are able to earn cash incentives by completing corporate wellness challenges, taking
advantage of preventive care, reaching step goals, browsing healthy recipes and completing voluntary health assessments. For the last few years, wehave also been distributing a monthly newsletter, titled Inspiring Wellness Newsletter, to detail important health and wellness topics. In addition toawareness-building, we also offered flu shots to all employees in 2017. To promote healthy lifestyles, some of our sites are equipped with gymnasiums,
have fitness classes and offer massage services. Furthermore, for employees and their families who are covered under the company’s medical plan,most preventative services are covered at 100 percent. To support our employees’ financial wellness, in August 2017, our 401(k) provider conductedwebinars aimed at saving and preparing for retirement.
EuropeOur site in Belgium continued the Fitbees Program, which allows employees to achieve different health and wellness goals such as eating healthy,
losing weight, quitting smoking or being more active. Participants of the program started with a health check to document their current condition
and tips on how to obtain their goals. At the end of the program there was a follow-up health check to see the positive results of a healthier lifestyle.
Throughout the year, our facility in Roznov, Czech Republic also continued to implement various wellness initiatives for our employees. Driven by the
belief that all initiatives are beneficial for both our employees and the company, our company strives to have all of our employees active and healthy.
Asia
In Asia, local sites continued to post the Inspiring Wellness Newsletter onsite as well as on their local human resources website. Along with the topics
mentioned in the newsletter, most sites organize similar activities to mirror monthly topics. Some of our locations in Asia offer health awarenessprograms including regular health talks, vaccinations and other medical tests.
Many of our sites around North America, Europe and Asia provide a multitude of opportunities for employees to participate in physical activities. In
2017, many of our sites hosted or sponsored sporting activities such as running marathons, biking, basketball, volleyball, futsal, soccer, tennis, pingpong and badminton tournaments. Such activities are seen as an opportunity for employees to participate in physical activity while also building
camaraderie among colleagues.

Page 36

Corporate Social Responsibility Report

Recognition2017 Winner of Production Safety Knowledge Competition
Our facility in Shenzhen was a winner in the production safety knowledge competition held by the Xili Federation of Trade Unions.
Certification of Outstanding Company in Fire Safety
Our facility in Binh Duong, Vietnam was recognized for its outstanding compliance with fire safety involving sprinkler systems; smoke detectors;
setup, inspection, and regular maintenance of systems; training and communication on fire safety; drills; participation in firefighting competitions; andexcellent results in quarterly inspections conducted by the Binh Duong government.
2017 Gold Class Award of Malaysian Society for Occupational Safety & Health
Both of our facilities in Seremban were recognized with Gold Class Awards in 2017 for excellent performance in maintaining a safe and healthy
workplace by the Malaysian Society for Occupational Safety and Health (MOSHPA).

ON Semiconductor

Page 37

ECO-FRIENDLY

Page 38

Corporate Social Responsibility ReportOUR PLANET“Highly ethical behavior, socially responsible programs and environmentally
sustainable operations are deeply rooted in ON Semiconductor corporate culture andare supported by our core values of Integrity, Respect and Initiative. We benchmark
our programs, policies and processes against global standards and best in classpractitioners in order to continually improve our performance and be recognized asa world class corporate citizen. Our focus on corporate social responsibility enables us to positively
impact all of the communities where we do business.”
Keenan Evans, Senior Vice President, Global Quality, Reliability, EHS and Corporate Social Responsibility

Overview
At ON Semiconductor, we are committed to a greener world by keeping sustainability at the forefront of our operations. We work to reduce carbon
emissions, minimize consumption of energy, save water and reduce chemical usage as well as waste generation. With an in-house team dedicatedto sustainability excellence, we have achieved marked successes within our many conservation programs. Responsible environmental practices arevital to the success of our semiconductor device manufacturing business. We continually invest in engineering and administrative controls to prevent
environmental pollution. Waste disposal, air emissions and industrial waste water emissions are controlled to meet or exceed legal requirements. Air
and industrial waste water emissions are treated using the most effective technology and employees are trained to conduct procedures to prevent
damage to the environment.
As a sign of our commitment to sustainability, we are dedicated to adhering to the increasing number of laws and regulations such as RoHS (Restrictionof Hazardous Substances) and REACH (Registration, Evaluation and Authorization of Chemicals) within our own manufacturing process as well as
those of our suppliers’. We continuously work with our suppliers to certify that our products are free from any restricted materials and to ensure that
all metals utilized in our products are sourced from conflict-free mines.

Management Approach
Our approach to environmental sustainability is guided by our company’s environmental, occupational health and safety policy. The policy forms
the basis on which our company establishes, implements, maintains and continually improves our environmental management system. Procedures forour environmental management conform to ISO 14001 (Environmental Management Systems) certification. Compliance with and certification to ISO
14001 provides us with a competitive advantage as we use our flexible manufacturing network to meet the needs of customers around the world.
External environmental aspects such as communication and third party verification are emphasized under ISO 14001.
We also align our environmental management systems to the RBA Code of Conduct. We expect ourselves and our suppliers to abide by theenvironmental standards prescribed by the RBA. Each year our manufacturing facilities complete risk assessments through the RBA in order to evaluate
our environmental programs amongst others. During internal and third party on-site verification, facilities are inspected to assess compliance with RBA
requirements. Our suppliers are also required to complete the same risk assessments every other year and are subject to on-site verification based on
their performance on the risk assessments.
ON Semiconductor

Page 39

Climate Change[G4: 201-2]

We are aware of the potential opportunities and risks associated with climate change and have integrated the process of climate change into ourbusiness strategy in a number of ways. Top management at our company is focused on reducing our carbon footprint and developing quarterly status
reports on this topic. Carbon footprint reduction is aimed at improving the energy efficiency (electricity and fuel) of the company and electricity
consumption reduction of customers’ applications by supplying electricity efficient semiconductor devices. The importance of energy savings at
ON Semiconductor has resulted in 54 projects centered on more efficient usage of energy and fuel. From a long-term perspective, the company isfocused on installing energy efficient systems at our manufacturing sites. We provide lead and halogen-free semiconductor devices and strive to designand supply parts characterized by low energy consumption. The potential risks driven by changes in climate change regulation may require that we
install abatement systems, requiring further research and capital costs. However, we are confident that we will be able to adapt accordingly within ouralready environmentally-friendly business processes.

Conservation
Each of our factories is engaged in multiple sustainability projects aimed at conserving water, electricity and fuel. Our worldwide manufacturing
operations have well established recycling and waste minimization programs in place. Ongoing sustainability programs include:• Reusing rinse water in our fabs

• Reducing chemical use via process optimization• Reducing water flow during equipment idle periods• Recovering heat from boilers• Reducing electricity use• Recycling metal and paper products• Installation of energy efficient tools and illumination fixtures• Balancing our air streams• Preventing equipment leaks
Waste management[G4: 306-2] [G4: 306-4]

Each of our manufacturing sites have projects contributing to a reduction in waste. Some of these projects led to a reduction in chemical consumption
or increase in recycling waste. For examples, our sites have implemented projects that expand the lifetime of cleaning baths, modified processes toreduce the volume of chemicals per wafer, or installed mini pumps for optimal application of chemicals.
In 2017, the amount of total waste we reused and recycled was 13,518,781 kilograms while waste directed to landfill was 12,032,012 kilograms. Total
hazardous waste transported was 6,345,210 kilograms.
Total waste accounts for hazardous waste and non-hazardous waste that is generated from all activities (manufacturing and non-manufacturing). It
includes both solid and liquid waste, but does not include gaseous emissions, wastewater discharges or any wastes associated with on-site wastewater
treatment.
Reclaim and Recycle[G4: 301-1 - 301-3]

Our company’s manufacturing scrap reclamation operations are considered by refiners to be best in class.
The main reclaim center is located our company’s headquarters in Phoenix, Arizona while some of ourmanufacturing sites also reclaim and recycle their own materials. The manufacturing scrap processed canbe broken down into two categories: precious metal bearing material and non-precious metal bearing
material.
Our take-back and recycle program also provides our customers with an environmentally responsible
solution for the return, recycling and disposal of their products, including printed circuit evaluation boards.
This program is designed to ensure compliance with the current and forthcoming regional regulations
involving producer responsibility for recycling and proper disposal of electronic waste products.
Page 40

Precious Metal
Bearing Material
Scrappeddevices
Printed circuitboardsPlatinum targets
and evaporator
metallic

Non-Precious Metal
Bearing Material
Copper and alloy
42 lead frames
Copper wire
and tubing
SiliconAluminumGold targets, wireand evaporator
metallic

Stainless steel

Spent beadblast material

Plastics

Corporate Social Responsibility ReportIn 2017, approximately 1,147 metric tons of scrap materials and 609 kilograms of precious metals from our company’s worldwide manufacturing
facilities was processed, sorted and sold for reuse. The reclamation of these materials recouped more than $26.6 million.
Water Management[G4: 303-1 - 303-3]

Annually, we target a normalized reduction of one percent in water consumption to achieve our long-term goal of 5% from 2016 – 2020. Ourconservation and consolidation projects reduced water consumption by 14% at our wafer fabs and 15% at our assembly and test sites in 2017
compared to 2016. In total, we withdrew 12,169,049,481 liters of water and recycled or reused 5,330,683,822 liters (44% percent of total quantity
withdrawn).
Our site in Leshan, China analyzed additional options for decreasing water consumption at the site. In doing so, the site upgraded its reverse osmosis
system by modifying the setup of membranes which resulted in annual savings of 30,000,000 liters of water. Recycling of reverse osmosis cooling waterprovided additional savings of 11,000,000 liters of water annually at the site.
In Cebu, Philippines our site found that the quality of waste water from the canteen could be used for irrigation purposes. In this way, the site is able
to reduce their total water consumption by 12,433,000 liters annually.
Energy Consumption[G4: 302-1 - 302-5]

Energy efficiency is central to our products as well as our operations. Along with reducing energy consumption through the use of our products,
we implement energy conservation and consolidation projects. Each year, our goal is to reduce energy consumption by one percent allowing us toobtain our long term goal of five percent reduction from 2016 – 2020. Due to multiple expansion projects adding more manufacturing capacity to
our operations, total energy consumption in 2017 increased by 3% compared to 2016. Our company’s total energy consumption was 1,458,849
kWh, with electrical and fuel consumption (from non-renewable resources) being 1,283,878,940 kWh and 629,896 gigajoules respectively. However,sustainability projects focused on energy savings resulted in reduction of normalized energy consumption by 14% at our wafer fabs and 8.6% at ourassembly and test sites from the previous year.
Our facility in Pocatello, Idaho estimated that the site’s lighting power consumption was around 11.5% of the entire site load. Analysis showedthat conversion to a LED smart system would result in approximately 50 percent or 3.6 MWh per year reduction of energy needed for lighting. Afterinstalling the smart sensor system to replace photocells, individuals are able to control color lighting levels via cellphone and through the motionsensors, lights automatically turn off when a room is vacant.
In Shenzhen, China, we analyzed the possibilities of saving energy by optimizing the air change in a portion of the site’s clean room area. The study
showed the feasibility of changing inverter frequency from 32 Hz to 28 Hz with no impact on the quality parameters. Through this sustainability project,
the site is able to reduce electricity consumption by 1.1 MWh annually.
Air Emissions[G4: 305-5]

We are dedicated to reducing energy consumption and our overall carbon footprint annually by one percent and a total reduction of five percent from2016 – 2020. Normalized carbon emissions reduced by eight percentage at our front end and assembly and test operation facilities in 2017 compared
to 2016. Scope 2 greenhouse gas emissions reduced by 67,675 metric tons of carbon dioxide due to 47 projects in six countries in the reporting year.
Our company also encourages employees to consider the impact of everyday activities on the environment. We recognize that commuting can be costly
and reward employees who take advantage of various commuting options such as vanpooling, carpooling, bus or rail travel and bicycle use. Manyof our global sites offer various types of employee trip reduction plans. Monthly subsidies are established by site budget and may vary from location
to location depending on local regulatory trip reduction requirements. In Phoenix, we prevent nine tons of pollution annually through our vanpool
program.
ON Semiconductor

Page 41

Recognition
Pocatello Energy Efficient Upgrades and Incentives
Our site in Pocatello, Idaho was awarded incentives from Idaho Power for the installation of a variable frequency driver for air conditioning to better
manage power and LED lighting upgrades.
Outstanding Award for Don Emilio Abello Energy Efficiency
The Don Emilio Abello Energy Efficiency Award is given to individuals and organizations with outstanding performance in energy efficiency andconservation. Our sites in Tarlac and Carmona, Philippines both received the award for 5% and 7% energy savings respectively.
ASEAN Award
Our site in Carmona, Philippines received recognition for best practice in energy management in buildings and industries.

Page 42

Corporate Social Responsibility Report

COMPASSION

ON Semiconductor

Page 43OUR COMMUNITY“ON Semiconductor has and continues to be active in supporting local communities
throughout our worldwide footprint. The generosity of our employees globally isevident through the time, talent and money donated to foster more successful,safe and healthy communities. As a company, we are honored to have a culture
which is committed to making the world a better place for everyone.”
Paul Rolls, Executive Vice President, Sales and Marketing

Overview
ON Semiconductor strives to make a positive impact in the communities where our employees work and live. Our financial contributions and employee
volunteer efforts target community needs in the areas of disaster relief, the environment, health, human services and science, technology, engineeringand mathematics (STEM) education. Through our community initiatives, we aim to create a relationship of mutual trust and respect between thecompany and the local communities in which we operate. The results of our community outreach programs have led to a more engaged workforce,greener communities, swift disaster relief efforts as well as increased and more equitable access to education, health care services and basic humannecessities.

Global Corporate Giving Program
One way in which ON Semiconductor has operationalized its mission of being socially responsible is through thecompany’s Global Corporate Giving (GCG) program. Through the GCG program, we strive to strategically leverage
ON Semiconductor resources as well as the existing resources, talent and efforts of nonprofits and educational
institutions. Each year, we fund projects and programs in order to create social value and maximize our impact oncommunities through workplace giving and community grants.
The GCG program is administered by 26 committee members, based in Asia, Europe and North America,
who represent each of our sites globally and serve as ambassadors to the program. They come from various
backgrounds including human resources, communications, manufacturing, research and development, CSR,
finance, environmental health and safety and sales. Their diverse backgrounds and locations helps the company
take into account cultural, institutional and operational differences important to the success of the GCG program.
In order to achieve long-lasting economic value and social good, we also rely on various other stakeholder groups including executive leadership, thecompany’s board of directors (BOD), our employees, educational institutions and nonprofits. We engage these stakeholders at an on-going basis tobetter understand how we can build stronger communities together.
Page 44

Corporate Social Responsibility ReportWe provide charitable organizations and educational institutions the opportunity to apply for grants that are awarded on a quarterly cycle. We evaluate
applications and invest in programs based on the target population’s need, clear objectives and goals and the organization’s evaluation plan. Grantees
awarded beyond a certain threshold are also required to share the success of their program and the impact of their work in the community throughgrant reporting. For more information about ON Semiconductor’s global corporate giving grant program, please visit our external website.

Charitable Contributions by Focus Areas
2% 9%
20%
38%

31%
Environment

Disaster Relief

HealthHuman Services

STEM Education

Data presented is as of December 31, 2017.

Looking Forward: Volunteer Matching Grant
In 2018, we will launch a volunteer matching grant whereby organizations with which employees
volunteer will receive the employee volunteer matching grant on a quarterly basis.

Employee Volunteerism
We believe that ON Semiconductor’s role in the community involves both cash and noncash contributions. To encourage our employees to volunteer
their time, talent, energy and effort in the community, we introduced a paid employee volunteer program (EVP) in North America in July 2017. Throughthe EVP, employees may volunteer with an organizations of their liking during for up to one day and get paid for doing so. Additionally, employees may
also participate in company sponsored volunteer events during company time.

Community Impact: 2017
Disaster Relief
Several communities in the United States including those in California,
Oregon, Puerto Rico, Florida and Texas faced devastating floods andfires. To support individuals in overcoming the effects of the San Jose
floods, Eagle Creek fires, Hurricane Harvey, Hurricane Irma and Hurricane
Maria we provided cash contributions and matched employee donations
to nonprofit organizations active in the impacted regions. In Asia, we
also donated and matched employee contributions to provide relief tocommunities affected by the Penang floods in 2017.

ON Semiconductor

Page 45

Education
Bernardus Technicum
The electronic industry in Belgium has a tremendous shortage of technical staff. As a result, one of the biggest schools in Oudenaarde – Bernardus
Technicum – is working to increase the number of STEM students in the coming three years so that more technical profiles become available for thelabor market. The school is located five kilometers away from our facility in Oudenaarde and we have many alumni from the school that work at ourcompany today. Through our company’s support, the school is investing in more high tech equipment such as laser cutters and robotic arms. The new
STEM classrooms will be equipped with all new materials, which we hope will attract and motivate more students to make the choice for a STEM
education.

Heritage Academy Mesa
Through the financial support of our GCG program, Heritage Academy Mesa implemented a new biotechnology curriculum and hands-on training toprepare students for high-wage, high-demand STEM industries. Funding was used in order to purchase equipment, chemicals and laptops neededto effectively teach the introductory course on biotechnology. Of the 10th – 12th grade students enrolled in the program, 52% were female. As atestament to the program’s success, all 10th and 11th graders in the program also committed to taking the second course in biotechnology offeredby the school.

Idaho State University Foundation
Our site in Pocatello has enjoyed a longstanding relationship with Idaho State
University (ISU) for over 40 years. In 2017,
we continued to grow this relationshipwith our support of the Bengal STEM Day(STEM 8th grade students), ISU Growing
Together (STEM area teachers), MATH
Counts, and the Super STEM Girl Conference where we also had sixteen ON Semiconductor female employees volunteer as mentors. We are furthering
our relation with ISU through curriculum discussions to enhance the company’s internship and employment opportunities with ISU students.

IridescentThrough a grant from ON Semiconductor, Iridescent, a science education nonprofit, recruited over 50 girls and seven teachers from Title 1 schools
from Biltmore Preparatory Academy, Papago School, and Kenilwort School in the Phoenix, Arizona area. The organization also worked with girls from
Desert Shadows to participate in the Technovation Program. The mobile applications developed by students participating in Iridescent’s Technovation
program address several of the United Nation’s Sustainable Development goals including health, poverty education and environment. One of the teams
supported by ON Semiconductor created an application to help those with learning disabilities.

Junior Achievement of Oregon
Junior Achievement (JA) BizTown combines four weeks of in-class learning with one-day of economic
simulation. Students learn how to be citizens of a community in which they run businesses and manageother day-to-day responsibilities. In 2017, ON Semiconductor’s “mini-business” at JA BizTown was built
and opened in Portland, Oregon. Our employees were actively engaged in providing input on aspects of
the JA BizTown simulation as it related to our business including student roles and job titles. Almost 5,000
students have participated in JA BizTown since the opening of the ON Semiconductor business space.

Page 46

Corporate Social Responsibility Report

Salam Malaysia Foundation
Our site in Seremban, Malaysia partnered with a local non-governmental organization, Salam Malaysia
Foundation, to coordinate a back-to-school program for underprivileged students. Under this program,
we provided back to school kits, including backpacks, shoes, uniforms, and school suppliers for over 400
children attending 37 different schools in the Negeri Sembilan area.

Hope School
Since 2000, we have supported the Yan Feng Hope School of Mabian in Leshan, China. The company has been able to support a higher enrollment
rate at the school through in-kind donations such as stationary, furniture, school uniforms and winter quilts. In 2016 and 2017 combined, the company
provided funding for 1,368 sets of school uniforms and 120 winter quilts to Hope School.

Human Services
Boai School and Rehabilitation Clinic
As a part of our 2017 Compliance, Ethics and CSR conference held in Suzhou, China, over 40 employees
from North America, Asia and Europe volunteered their time at the Boai School and Rehabilitation Clinic.
Volunteers toured the facility, played games with children and distributed mosquito repellent bracelets,
hand-held electronic fans and towels for children and portable storage devices for teachers. Along withmaking a financial contribution through the GCG program, our site in Suzhou has also established a longterm partnership with the organization through which our employees volunteer with the organization ona regular basis.

JDRF
Diabetes is a cause that is very close to our company as we design and manufacture the Struix stacked solution– a part that is found in glucose pumps that some type 1 diabetics must wear. To show our support, we werea corporate sponsor of the Phoenix JDRF One Walk and had a group of employees participate in the event.
JDRF is a global diabetes foundation with a strategic plan to end type-1 diabetes (T1D) by funding researchon cures, advocating for government support of research and new therapies, and connecting new therapies
to the T1D community.

Phan Sinh Shelter
A group of our employees had the opportunity to visit and volunteer at Phan Sinh Shelter, located in aremote village north of Dong Nai, Vietnam. The shelter is home to approximately 130 elderly individuals
and children with disabilities that suffer from severe illnesses. Our site collected donations and transported
in-kind goods to the shelter. Our volunteers were also able to spend quality time with the children andelderly, sharing stories and helping with caretaking activities.

ON Semiconductor

Page 47

Pocatello Free Clinic
Pocatello Free Clinic strives to address vital community needs by providing high quality health care and related services regardless of an individuals’
ability to pay. We supported Pocatello Free Clinic in 2017 to cover expenses of medical laboratory tests for underserved patients of the clinic. Throughthe laboratory tests, the Pocatello Free Clinic is able to monitor chronic illnesses and disorders and avoid unexpected emergency room visits. Additionally,
the hospital is better able to provide preventative care through the laboratory tests.

Salberghaus
A group of ON Semiconductor employees in Germany visited Salberghaus, a local charity that aids children in need, to help clean up the gardens andchildren’s playgrounds. The company also donated diapers, wipes, tissues, toothbrushes, toothpaste, slaps, strollers, bicycles and toys for the children
living at the facility.

St. Luke’s Health Foundation
Through St. Luke’s Health Foundation, we are assisting approximately 2,000 patients and their families access basic needs such as medical supplies,
medication, temporary housing, utility bills, meal vouchers, gasoline and transportation vouchers for travel to and from the hospital and medical
appointments through the Patience Assistance Fund. In doing so, we hope to relieve some of the financial burden of unexpected medical problems sothat patients can focus on improved health.

Strom života
Strom života is a nonprofit in the Czech Republic that provides hospice care to terminally ill people at their homes. The aim of the organization is tohelp terminally ill individuals to stay close to their circle of close relatives and friends by providing full nursing care through a multidisciplinary teamconsisting of social workers, psychotherapists and nurses. Through our GCG, Strom života was able to fund one professional nurse in 2017.

Salberghaus

St. Luke’s Health Foundation

Strom života

Valley of the Sun United Way
We were able to support Valley of the Sun United Way’s Project Connect through a grant issued in 2017. Project Connect is pivotal in helping Valley of
the Sun United Way end homelessness in Maricopa County, Arizona as it enables guests to connect with a variety of housing, employment and medical
service providers in one convenient location multiple times per year. Attendees of Project Connect are also given a meal, shower and clean clothing at
this event.

Job Fair for Dependents
To positively contribute to the economy in the Philippines, address the unemployment rate and promote economic security, our sites in the Philippinesorganized job fairs for employees’ dependents in 2017. The job fairs resulted in the hiring of 32 individuals on the spot. Representatives from
Department of Labor and Employment and Public Employment Service Office also participated in the event.

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Corporate Social Responsibility Report

Environment
Troutdale Parks Services
A group of our employees from the technology and development group in Gresham volunteered with the city of Troutdale Parks Services to dig
blackberry roots, invasive ivy and garbage that plagued the Glenn Ott Community Park in Oregon.

Dodang Mountain
On a monthly basis, our employees in Bucheon, Korea volunteer their time to clean up around Dodang Mountain, located at the back of our campus.
The site also encourages environmental conservation and sustainability by holding events such as environmental writing contests at local elementary
schools.

Troutdale Park Services

Dodang Mountain

Barlow School District’s Adult Living Program“Green Team Recycle” – a local initiative at our site in Gresham, Oregon – partnered with Barlow School District’s Adult Living Program to recycle
beverage containers. On a weekly basis, members from the Adult Living Program picked up the collected containers and turned them in for bottle
redemption. The proceeds from the recycled containers benefited their program of providing students business skills and vocational rehabilitation toteach independent living skills including shopping, budgeting and banking. The proceeds from our recycled items has helped at least 20 students inthe program.

World Environment Day
To promote awareness on environmental conservation and sustainability, ON Semiconductor sponsored and participated in the World Environment Day
event organized by the Dong Nai and Binh Duong province governments of Vietnam. Our employees volunteered their time to increase awareness onenvironmental issues among local individuals and industrial zones, planted trees and participated in a recycling competition.

ON Semiconductor

Page 49

VZW Onzen Hof
Onzen Hof is a community-based sustainable farming organization near our Mechelen, Belgium site that we have supported through volunteerism
and our GCG program. Volunteers are creating value for the community by offering different, fresh, organic vegetables to local people for a small fee.
The organization is currently building an open source solar powered farming robot to drive sustainable innovation in regular farming operations. The“Farmbot” is able to plant a diverse range of crops and monitor their growth in real-time. Furthermore, the Farmbot can remove weeds and water
plants as per their needs. The software is also able to organize different crops in the field so that they can work together symbiotically, avoiding pests
and disease which are more common in monoculture. This makes, the otherwise labor intensive, farming more efficient and enjoyable for everyone.

Recognition2017 Top Stakeholder Awards
Our facility in Cebu, Philippines was awarded as one of the top 25 stakeholder awardees by the Department of Education – Division of Lapu-Lapu
City. The award recognizes stakeholders of the different schools in Lapu-Lapu city that have contributed in one way or another the improvement of theeducational system and holistic development of students.

Page 50

Corporate Social Responsibility ReportAPPENDIX
ON Semiconductor Memberships and External Initiatives[G4: 102-12 – 102-13]

Externally developed economic, environmental and social charters, principles, or other initiatives to which we subscribe or endorse:• Boston College Center for Corporate Citizenship• Carbon Disclosure Project• China Power Supply Society• Corporate Secretaries and Governance Professionals• Electronic Components Industry Association• Ethisphere’s Business Ethics Leadership Alliance• Europe’s Energy for Green Society ENIAC JU Project• Fab Owners Association• Global Semiconductor Alliance• Hearing Industries Association• Malaysian Institute of Integrity and Corporate Integrity Pledge• Microelectronic Industry Design Association (MIDAS) Ireland• Motor Equipment Manufacturers Association/ Original Equipment Suppliers Association (MEMA/OESA)• National Association of Corporate Directors• Power Sources Manufactures Association (PSMA)• Responsible Business Alliance (RBA) and their Environmental Sustainability, Indirect Spend Validated Audit Process, andConflict Minerals groups• Responsible Minerals Initiative (RMI)• Semiconductor Electronic Industries in Philippines Inc. (SEIPI)• Semiconductor Industry Association (SIA)• Society of Corporate Compliance and Ethics• Sustainability Reporting Group, American Council for an Energy-Efficient Economy (ACEEE)• World Semiconductor Council (WSC)
Memberships with position on governance body:• Arizona State University, Jeffrey Wincel, Member of Board of Trustees• Association of Corporate Counsel, Mark Rogers, President (Arizona Chapter)• CEB Compliance & Ethics Leadership Council, Founding Member• Electronic Components Industry Association, Jeff Thompson, Member of Board of Directors• Juvenile Diabetes Research Foundation, Desert Southwest Chapter, Kris Pugsley, Member of Board of Directors• Semiconductor Industry Association (SIA), Keith Jackson, Member of Board of Directors

ON Semiconductor

Page 51

Stakeholder Engagement[G4:102-40] [102-42 – 102-44] [G4: 102-47] [G4: 103-1]

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 ON Semiconductor’s operations. The method and frequency of engagement varies
by stakeholder type. However, we aim to engage stakeholders through conferences, membership and associations, surveys, reporting, scorecards,
assessments, philanthropy and social media throughout the year. Further detail on how we engage our stakeholders and important topics identified
can be found in the table below:
MethodDescription

Employees
Open-door policy

We maintain an open-door policy, allowing employees to communicate and engage with management staff and human resources.

Training

Our employees globally are trained in the company’s Code of Business Conduct, Information Security Awareness and CSR on an annual basis.

Employee surveys

We conduct an anonymous employee engagement survey every other year to seek employees’ opinions on topics such as work environment, work
relationships, job responsibilities, etc. We also administer other surveys on our compliance and ethics program, diversity and inclusion and quality.

Performance appraisals

We have an objective and fair performance management process which all employees are a part of on an annual basis.

Circuit newsletter, intranet
website, social media, internal
communication messages

We strive to communicate effectively and consistently with our employees through various mediums including the ON Semiconductor intranet,internal communication messages, social media and the monthly Circuit newsletter. Through the Circuit, employees are able to share information on
local initiatives with our sites worldwide.

Affinity network groups

We have three affinity network groups: the Women’s Leadership Initiative, STEM UP and Cultivate. While STEM UP and Cultivate has a presence inNorth America, Women’s Leadership Council is active in North America, Asia and Europe.

Customers
Customer scorecards

The use of customer scorecards is an ongoing process and provides results that allow us analyze trends in overall performance for each key attributeincluded in the scorecard.

Quarterly business reviews

We engage our customers on a quarterly basis to discuss results from customer scorecards and customer site visits to our facilities.

Customer satisfaction surveys

Customer satisfaction surveys are disseminated on a regular basis in order to obtain insights and improve our performance on issues important toour customers such as sales support, price of products, lead time and quality.

Ask an expert forum

Customers may post questions on our company and products through our external website to gain expert opinions. The questions are routed throughthe Technical Support Center, which takes ownership of finding accurate and providing timely responses.

Industry associations andconferences

We participate in a variety of conferences with our customers, including the Responsible Business Alliance (RBA) conference on an annual basis. The
RBA conference in particular allows us to engage our customers on issues related to sustainability and social responsibility.

Trade shows

We participate in a variety of trade shows throughout the year to engage existing and new customers and distributors.

Suppliers
CSR letter of conformance

We communicate our expectations and standards in relation to CSR with our suppliers every other year through the CSR letter of conformance.

Self-assessment questionnaires

Every other year, we require our top corporate suppliers and on-site suppliers and service providers to complete risk assessments in relation tosustainability and social responsibility.

CSR training programs

We offer complimentary CSR training to our material, foundry and subcontractor suppliers as well as our on-site service providers. We often invite
suppliers for face-to-face workshops and briefings on topics related to social responsibility and ethics.

Industry associations andconferences

We participate in a variety of conferences with our suppliers, including the RBA conference on an annual basis. The RBA conference in particularallows us to engage our suppliers on issues related to sustainability and social responsibility.

Government
Public policy advocacy

We actively engage with associations that make recommendations to governments and authorities on policy issues related to the semiconductor
industry.

Non-government organizations & communities
Corporate philanthropy

We support and strengthen local communities through financial investments. We partner with nonprofit and educational organizations in order toaddress some our communities’ most pressing needs through grant awards.

Employee volunteerism

We devote our time, effort, energy and talent to charitable organizations and the community through employee volunteerism.

Investors
Earning calls

We host quarterly earning calls with our shareholders to discuss company performance.

ReportingWe publish an annual report and files with the Security and Exchange Commission on a quarterly and yearly basis.

Page 52

Corporate Social Responsibility ReportMaterial Topics
In 2017 we specifically engaged our board of directors, executive staff, employees, customers and suppliers to determine the materiality of economic,
environmental and social issues. The issues presented in our materiality matrix were narrowed down based on our knowledge of the industry as wellas sustainability trends. While all fifteen issues are ultimately considered of high importance to our stakeholders and business operations, certain issues
are more significant than others. We address the fifteen high-priority issues rated by our stakeholders in this report and will continue to focus on theseimportant topics through our business operations.

ON Semiconductor’s Materiality Matrix

Business ethics
Air emissions

Importance to Our Stakeholders

Innovation

Worker H&S

Human rights

Water management
Waste management

Energry efficient
products

Economic performance

Cost effectivenessConflict minerals

Diversity

Career development& management

Community engagement

Economic
Environmental
SocialImportance to Our Business

ON Semiconductor

Page 53

Aspect Boundaries[G4: 102-46] [G4: 103-1]
Boundaries
Category

G4 Material Aspect

Internal

External

Acquisitions
Air emissions

Report Overview

Economic
Environmental

No corresponding G4 material aspect
Emissions

x
x

x
x

All sites, customers, suppliers
Manufacturing sites, local environment

Entities Impacted

Business ethics
Career development/leadership

Economic
SocialNo corresponding G4 material aspect
Training and educationxx

x

Employees, customers, suppliers, communities
Employees

Community engagement
Conflict minerals
Cost effectiveness
Diversity
Economic performance

SocialSocialSocialEconomic

Local communities
Human rights assessment
No corresponding G4 material aspect
Diversity and equal opportunity
Economic performance

x
x
x
x
x

x
x
x

Employees, Communities
Customers, suppliers, communities
Manufacturing operations, customers
Employees
Employees

Energy efficient products

Environmental

Energyxx

Human rights
Innovation
Waste management
Water management
Worker health and safety

SocialEnvironmental
Environmental
Environmental

Human rights assessment
No corresponding G4 material aspect
Effluents and waste
Water
Occupational health and safety

x
x
x
x
x

x
x
x
x

Design and manufacturing operations, customers,
environment
Employees, customers, suppliers, communities
Design and manufacturing operations, customers
Manufacturing operations, community, environment
Manufacturing sites, community, environment
Employees

Additional Data
Workforce Statistics[G4: 102-7 – 102-8] [G4: 401-1] [G4: 405-1]
Gender
Total
Contractors & Interns

984

Regular employees

33,508Full time employees

34,351

Part time employees

141

New hires

7,620

Turnover3,131

Age Group

RegionM

F<30 Years

30-50 Years

50+ Years

Asia

Americas

EMEA

617
(63%)
17,795
(53%)

367
(37%)
15,713
(47%)

718
(73%)
11,058
(33%)

236
(24%)
17,424
(52%)

30
(3%)
5,026
(15%)

847
(86%)
25,117
(75%)

105
(11%)
4,582
(14%)

32
(3%)
3,809
(11%)

18,333
(53%)
79
(56%)
3,982
(52%)
1,807
(58%)

16,018
(47%)
62
(44%)
3,638
(48%)
1,324
(42%)

—

—

—

—

—

—

—

—

—

—

—

—

5,197
(68%)
1,450
(46%)

2,179
(29%)
1,270
(41%)

244
(3%)
396
(13%)

6,247
(82%)
2,397
(77%)

695
(9%)
435
(14%)

678
(9%)
299
(10%)

Please note: 15 (0.5%) cases of turnover by age are unavailable for 2017.

Data presented is as of December 31, 2017.

Page 54

Corporate Social Responsibility ReportHeatlth & Safety Statistics[G4: 403-2]
Type of Injury

Rate (%)

Abrasion

10

Avulsion

0.4

Burn

4

Concussion

0.4

Contusion

9

Crushing

1

Cumulative stress disorder

5

Cut

8

Fracture – closed

1.1

Inflammation

2

Irritation

12

Laceration

8

Puncture

3

Sprain

6

Sting

0.4

Strain/torn muscle

19

Data presented is as of December 31, 2017.

CONTACT US[G4: 102-53]

ON Semiconductor Headquarters
5005 East McDowell Road
Phoenix, AZ 85008
USA

ON Semiconductor Website: www.onsemi.com
Corporate Social Responsibility Page: www.onsemi.com/social-responsibility
Corporate Environmental Programs Page: www.onsemi.com/evp
Visit us on:

Tel: (602) 244-6600
Customer Inquiries: (888) 743-7826
Contact for CSR report inquiries: Keenan Evans, Senior Vice President, Global Quality, Reliability, EHS and Corporate Social Responsibility

ON Semiconductor

Page 55

2017 Global Reporting Initiative Content Index[G4: 102-55]
GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 102: General Disclosures 2017
102-1

Name of organization

Our Business: Overview – page 5

102-2

Activities, brands, products and services

Our Business: Overview – page 5

102-3

Location of headquarters

Our Business: Overview – page 5

102-4

Location of operations

Our Business: Worldwide Locations – page 8

102-5

Ownership and legal form

Our Business: Overview – page 5102-6Markets served

102-7

Our Business: Financial Strength – page 9
Our Business: Customers – page 9

Scale of organization

Our People: Overview – page 26(a) Total number of employees

Appendix: Additional Data – Workforce Statistics – page 54(a) Total number of operations

51(b) Net revenue

Our Business: Financial Strength – page 9(c) Total capitalization in terms of debt and equity(d) Quantity of Products Provided

Number of operations equals solution engineering, design,
manufacturing and support sites with 50+ employees

Total liabilities: $4,394.1 in millions
Total equity: $2,801.0 in millions
Our Business: Brand – page 8

Information on employees and other workers(a) Total number of employees by employment contract and Appendix: Additional Data – Workforce Statistics – page 54
gender(b) Total number of permanent employees by employment type
Appendix: Additional Data – Workforce Statistics – page 54
and gender
102-8(c) Report whether a substantial portion of the organization’s
workforce is performed by workers who are legally recognized
as self-employed, or by individuals other than employees Noor supervised workers, including employees and supervised
employees by contractors.
(d) Report any significant variations in employee numbers

N/A

102-9

Description of supply chain

Our Business: Responsible Sourcing – page 14102-10Significant changes to organization and supply chain

Our Business: Responsible Sourcing – page 14102-11

Precautionary principle approach

Our Business: Enterprise Risk Management – page 11102-12External initiatives

Appendix: ON Semiconductor Memberships and External
Initiatives – page 51

102-13

Membership of associations

Appendix: ON Semiconductor Memberships and External
Initiatives – page 51

102-14

Statement from senior decision-makerA Letter from Our President and CEO – page 1

102-16

Description of organization’s values, principles, standards, and Our Business: Core Values – page 5
norms of behavior
Our Business: Responsible Business Alliance – page 12Page 56

For further details on impacts, risks and opportunities
please see our 2017 SEC Form 10-K.

Corporate Social Responsibility ReportGRI Standard

Disclosure

Cross reference or Answer

Additional Notes

Our Governance And Ethics: Overview – page 18

102-18Governance structure102-40

List of key stakeholder groups

102-41

Percentage of employees covered by collective bargaining
22.40%
agreements

102-42

Identifying and selecting stakeholders

Appendix: Stakeholder Engagement – page 52

102-43

Approach to stakeholder engagement

Appendix: Stakeholder Engagement – page 52

102-44

Key topics and concerns raised

Appendix: Stakeholder Engagement – page 52

102-45

Entities included in the consolidated financial statements

See Item 1 Business Overview and Exhibit 21.1 List of
Significant Subsidiaries of 2017 SEC Form 10-K.

102-46

Defining report content and topic boundaries

102-47

List of material topics

Appendix: Stakeholder Engagement – page 52

102-48

Restatements of informationNone

102-49Changes in reportingNone

102-50

Reporting period

2017 calendar year

102-51

Date of most recent report

July, 2017102-52

Reporting cycle

Annual102-53

Contact point for questions

Appendix: Contact Us – page 55

102-54Claims of reporting in accordance with the GRI Standards

Report Overview – page 3

102-55GRI Content Index

Appendix: 2017 GRI Content Index – page 56

102-56External assurance

Report Overview – page 3

Our Business: Responsible Business Alliance – page 12
Appendix: Stakeholder Engagement – page 52

Report Overview – page 3
Appendix: Aspect Boundaries – page 54

GRI 103: Management Approach 2017
Appendix: Stakeholder Engagement – page 52

103-1

Explanation of material topic and its boundary

103-2

Management approach for material topics

Our management approach to material topics can be foundin each section of the report.

103-3

Evaluation of management approach

Our evaluation of management approach to material topics
can be found in each section of this report.

Appendix: Aspect Boundaries – page 54

GRI 201: Economic Performance 2017
Direct economic value generated and distributed (EVG&D)

Revenue: $5,543.1 (in millions)(a) Direct economic value generated

Proceeds from sale of assets: $14.3 (in millions)
Cost of revenue: $3,509.3 (in millions)Operating cost: $1,352.9 (in millions)

201-1(b) Economic value distributed

Cash paid for employee wages and benefits: N/A

ON Semiconductor does not publicly disclose cash paid for
employee wages and benefits.

Cash paid for interest: $92.1 (in millions)
Cash paid for taxes: $67.8 (in millions)

ON Semiconductor(c) Economic value retained

Net income: $820.3 (in millions)(d) EVG&D by country, regional, or market levels

See 2017 SEC Form 10-K – Segment Information

Page 57GRI Standard

Disclosure

Cross reference or Answer

201-2

Financial implications and other risks and opportunities due to
Our Environment: Climate Change – page 40
climate change

201-3

Defined benefit obligation plans and other retirement plans

See our website for Regional Benefits Summaries and2017 SEC Form 10-K.

201-4

Financial assistance received from government

N/A

Additional Notes

ON Semiconductor does not publicly disclose thisinformation.

GRI 202: Market Presence 2017
All ON Semiconductor employees are compensated at or(a)    Ratio of standard entry level wage by gender compared toabove minimum wage. Minimum wage in all listed regions
local minimum wage
is gender neutral.

202-1

202-2

(b)    When a significant proportion of other workers (excluding
employees) performing the organization’s activities arecompensated based on wages subject to minimum wage rules,
describe the actions taken to determine whether these workers
are paid above minimum wage.

Other workers in this case pertain to employees of our
suppliers or on-site service providers (e.g. janitorial
staff, cafeteria workers, security, etc.). Several of ourmanufacturing sites audit these companies to ensure that
RBA standards are being met, including those related tominimum wage.

(c)    Definition used for ‘significant locations of operation’.

Manufacturing locations

Proportion of senior management hired from the local
72%
community

Locations considered are manufacturing sites. Senior
management are site leaders.

GRI 204: Procurement Practices 2017
204-1

Proportion of spending on local suppliers

Our Business: Responsible Sourcing – page 14

GRI 205: Anti-corruption 2017
205-1

Operations assessed for risks related to corruption

Our Business: Responsible Business Alliance – page 12

205-2

Communication and training about anti-corruption policies and
Our Governance and Ethics: Awareness – page 22
procedures

205-3

Confirmed incidents of corruption and actions taken

We do not have knowledge of any confirmed incidents ofcorruption.

GRI 206: Anti-Competitive Behavior 2017

206-1

We do not have knowledge of any legal actions pendingor completed during the reporting period regarding
Legal actions for anti-competitive behavior, anti-trust or
anticompetitive behavior and violations of anti-trust andmonopoly practices
monopoly legislation in which the organization has been
identified as a participant.

GRI 301: Material 2017

301-1 – 301-3

Materials used by weight or volume; percentage of recycled
input materials used to manufacturing organization’s primary
Our Environment: Reclaim and Recycle – page 40
products and services; reclaimed products and their packaging
materials

ON Semiconductor spends over $1 billion on various partsand raw materials as we manufacture both at internal andexternal sites. We do not track or estimate the raw material
used in key manufacturing locations.

GRI 302: Energy 2017
Energy consumption within the organization(a)    Non-renewable sources, including fuel types
302-1

Page 58

629,896 gigajoules

Total fuel consumption from non-renewable sources
tracked for manufacturing facilities. Includes natural gas
and diesel.

(b)    Renewable sources

N/A(c)    Electricity consumption

1,283,878,940 kWh(d)    Electricity, heating, cooling and steam sold

N/A

None sold(e)    Total energy consumption within organization

1,458,855,278 kWh (5,251,879 gigajoules)

Includes electricity, natural gas and diesel fuel consumption
at manufacturing sites only.

Corporate Social Responsibility ReportGRI Standard
302-1

Disclosure

Cross reference or Answer

Additional Notes(f)     Standards, methodologies, assumptions and/or calculation
kWh rate per union volume of fuel typetools used(g)    Conversion factors used

U.S. Department of Energy

Energy consumption outside the organization

N/A

Not evaluated

302-3

Energy intensity

Wafer fab energy (electricity & fuel) normalization = 0.067
kWh per unit
Assembly & test energy (electricity & fuel) normalization =1.414 kWh per KWBonds.

Denominator used: Wafer fab normalization unit based on
photo move volume. Assembly & Test normalization unit
based on wire bond volume.

302-4

Reduction of energy consumption

Our Planet: Energy Consumption – page 41

302-5

Reductions in energy requirements of product and services

N/A

302-2

GRI 303: Water 2017
303-1 – 303-3

Water withdrawal by source; water sources significantly affected
Our Planet: Water Management – page 41
by withdrawal of water; water recycled and reused

Quantity not evaluated according to source.

GRI 304: Biodiversity 2017

304-1 – 304-3

Operational sites owned, leased, managed in, or adjacent to,
ON Semiconductor does not have any operational sites
protected areas and areas of high biodiversity value outside
owned, leased, managed in or adjacent to protected areas
protected areas; significant impacts of activities, products andand areas of high biodiversity value outside protected areas.
services on biodiversity; habitats protected or restored

GRI 305: Emissions 2017305-1 – 305-3

Scope 1: 1,416,622 MTCO2
Direct (Scope 1), energy indirect (Scope 2) and other indirect
Scope 2: 649,589 MTCO2(Scope 3 GHG emissions
Scope 3: N/A

305-4

GHG emissions intensity

Wafer fab GHG emissions (electricity, fuel, PFCs) Intensity ratio calculated separately for wafer fabs and fornormalization = 37.592 grams carbon equivalent per unit assembly & test operations.
Assembly & test energy (electricity, fuel, PFCs ) normalization
Scope 1 and Scope 2 included.
= 267.745 grams carbon equivalent per kWBondsss

305-5

Reduction of GHG emissions

Our Planet: Air Emissions – page 41

305-6

Emissions of ozone-depleting substances (ODS)

Zero

305-7

Air emissions do not exceed local regulation air emission
Nitrogen oxides, sulfur oxides, and other significant air emissions permit limits. Emission concentrations tracked at local
facility; data not calculated for global value.

GRI 306: Effluents and Waste 2017306-1

Water discharge by quality and destination

Industrial water discharge managed per local regulation.
Discharge monitored at local facility; data not calculated
for global value.

306-2

Waste by type and disposal method

Our Planet: Waste Management – page 40

306-3

Significant spills

None

306-4

Transport of hazardous waste

Our Planet: Waste Management – page 40

306-5

Water bodies affected by water discharges and/or runoff

None

GRI 307: Environmental Compliance 2017
307-1

ON Semiconductor

Non-compliance with environmental laws and regulations

None known

Page 59GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 308: Supplier Environmental Assessment 2017308-1

New suppliers that were screened using environmental criteria

None

308-2

Negative environmental impacts in the supply chain and actions Our Business: Responsible Business Alliance – page 12
taken
Our Business: Responsible Sourcing – page 14

GRI 401: Employment 2017
401-1

New employee hires by age group, gender and region

Our People: Recruitment and Retention – page 30

Employee turnover by age group, gender and region

Appendix: Additional Data – Workforce Statistics – page 54

401-2

Benefits provided to full-time employees that are not provided
N/A
to temporary employees

ON Semiconductor does not publicly disclose thisinformation.

401-3

Parental leave

ON Semiconductor does not disclose this information
publicly.

N/A

GRI 402: Labor/Management Relations 2017

Minimum notice periods regarding operational changes

ON Semiconductor provides advance notice or makeschanges to the contract mid-term by mutual consent inaccordance with collective bargaining agreements entered
and local requirements in the different locations where thecompany operates.
Belgium: No
Czech Republic: No

402-1

China: Yes
For organizations with collective bargaining agreements report
whether the notice period and provisions for consultation and Japan: Yes
negotiations are specified in the collective agreements
Korea: No
USA: Yes
Vietnam: No
GRI 403: Occupational Health and Safety 2017403-1

Worker representation in formal joint management-worker
78%
health and safety committees

403-2

Our People: Health and Safety – page 34
Types of injury and rates of injury, occupational diseases, lost
Appendix: Additional Data – Health and Safety Statistics –days, and absenteeism, and number of work-related fatalities
page 55403-3

Workers with high incidence or high risk of diseases related toNonetheir occupation

403-4

Health and safety topics covered in formal agreements with
N/A
trade unions

ON Semiconductor does not disclose this information
publicly.

GRI 404: Training and Education 2017
Average hours of training per year per employee

404-2

We provide transition assistance in special situations.
Programs for upgrading employee skills and transition Our People: Professional Training and Professional
Examples include job placement assistance and resume
assistance programs
Development – page 30
writing services.

404-3

Percentage of employees receiving regular performance review 100% of all employees, male and female, receive a regularand career development areas
performance and career development review annually.

Page 60

N/A

ON Semiconductor sites in the U.S. do not track average
training hours per employee.

404-1

Corporate Social Responsibility ReportGRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 405: Diversity and Equal Opportunity 2017
Our Governance and Ethics: Overview – page 18
405-1

Diversity of governance body and employees

Our People: Commitment to Diversity – page 27
Appendix: Additional Data – Workforce Statistics – page 54

405-2

Ratio of basic salary and remuneration of women to men

N/A

ON Semiconductor does not disclose this information
publicly.

GRI 406: Non-Discrimination 2017406-1

Incidents of discrimination and corrective actions taken

None known

GRI 407 – 409: Freedom of Association and Collective Bargaining, Child Labor, Forced Labor 2017407-1 – 409-1

ON Semiconductor works with suppliers in countries
where the risk of violating labor and human standards
is recognized as being higher. To actively address this,ON Semiconductor requires suppliers to complete selfassessment questionnaires, provides training and also
conducts on-site verification. In the event that any risk ofviolating the right to freedom of association, existence ofOperations and suppliers in which the right of freedom of child labor or forced labor is identified, ON Semiconductor
association and collective bargaining, child labor and forced works closely and diligently with its suppliers throughlabor may be at riskcorrective action plans. If the nonconformance is notadequately addressed by the supplier in a timely fashion,
ON Semiconductor may choose to terminate its contract
with the supplier.
For more information on the company’s management
systems related to child labor and forced labor please see
page 34 of the 2017 Corporate Social Responsibility report.

GRI 410: Security Practices 2017

410-1

Security personnel trained in human rights policies or procedures

ON Semiconductor uses both in-house and third party
organizations for security personnel. Approximately 90%
of security personnel are trained in the company’s humanrights policies.

GRI 411: Rights of indigenous Peoples 2017411-1

Incidents of violations involving rights of indigenous peoples

To the best of our knowledge there have been no identified
incidents of violations involving the rights of indigenous
peoples during the reporting period.

GRI 412: Human Rights Assessments 2017412-1

Operations that have been subject to human rights reviews or
Our Business: Responsible Business Alliance – page 12
impact assessments

412-2

Employee training on human rights policies and procedures

412-3

Contracts with suppliers contain terms and conditions
related to human rights, such as forced and indentured
Significant investment agreements and contracts that include
labor and equal employment opportunity. Our service
human rights clauses or that underwent human rights screening
agreements also contain terms and conditions related to
the RBA Code of Conduct.

ON Semiconductor

Our Governance and Ethics: Awareness – page 22

Page 61GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 413: Local Communities 2017

413-1

All ON Semiconductor sites globally are involved with
community engagement and development programs
Operations with local community engagement, impact through corporate philanthropy including monetaryassessments, and development programs
donations and employee volunteerism. To learn more about
the company’s community engagement efforts, please see
the Our Community section of this report on page 44.

413-2

Operations with significant actual and potential negativeNone
impacts on local communities

GRI 414: Supplier Social Assessment 2017414-1

New suppliers that were screened using social criteria

414-2

Negative social impacts in the supply chain and actions taken

None
Our Business: Responsible Business Alliance – page 12
Our Business: Responsible Sourcing – page 14

GRI 415: Public Policy 2017415-1

Political contributions

None

GRI 416: Customer Health and Safety 2017416-1

Over 95% of ON Semiconductor products are available
in lead-free (Pb-free) packaging. ON Semiconductor also
supports the aim of REACH in improving the protectionof human health and the environment through better andAssessment of health and safety impacts of product and service
earlier identification of the intrinsic property of chemical
categories
substances. ON Semiconductor meets REACH requirements
and is committed to provide our customers with information
about substances in our products according to REACH
requirements.

416-2

Incidents of non-compliance concerning the health and safety
N/A
impacts of products and services

ON Semiconductor does not disclose this information
publicly.

GRI 417: Marketing and Labeling 2017
Per labeling requirements of JEDEC standard JESD97,
all shipping labels show whether or not the products are
Restriction on Hazardous Substances (RoHS) compliant/Pbfree. ON Semiconductor labeling also indicates information
regarding hazardous material to comply with the China
RoHS directive.

417-1

Requirements for product and service information and labeling417-2

To the best of our knowledge ON Semiconductor has not
Incidents of non-compliance concerning product and service
received fines for non-compliance concerning product andinformation and labelingservice information and labeling.

417-3

Incidents ofcommunication

non-complianceconcerningmarketing ON Semiconductor is not aware of any non-complianceconcerning marketing communication.

GRI 418: Customer Privacy 2017
418-1

Substantiated complaints concerning breaches of customer ON Semiconductor is not aware of any such substantiatedprivacy and losses of customer data
complaints.

GRI 419: Socioeconomic Compliance 2017

419-1

Page 62

To the best of our knowledge ON Semiconductor has not
Non-compliance with laws and regulations in the social and received significant fines or non-monetary sanctions for
economic area
non-compliance with laws or regulations in the social or
economic areas.

Corporate Social Responsibility Report®

ON Semiconductor ®
5005 East McDowell Road, Phoenix, Arizona 85008 USA

www.onsemi.com

ON Semiconductor

Page 63

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ON Semiconductor and the ON Semiconductor logo are trademarks of Semiconductor Components Industries, LLC dba ON Semiconductor or its subsidiaries in the United States and/or other countries. ON Semiconductor owns the rights to a number of patents,
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