TABLE OF CONTENTS
A Letter from President and CEO

3

Our Planet

41

Report Overview

5

Overview

41

Engineering a Better Tomorrow

6

Management Approach

41

Management Approach7

Climate Change

42

Key Accomplishments

7

Scope 1 and 2 Emissions

42

9Energy Consumption

43

9

Water Management

44

Core Values

9

Waste Management

45

Our Culture

10

Reclaim and Recycle

45

Mergers and Acquisitions

12

Our BusinessMission, Vision and Culture

47

Worldwide Locations

13

Global Corporate Giving Program

47

Brand

14

Employee Volunteerism

48

Customers

15

Community Impact

49

Appendix

52

Financial Strength

15

How Our Products Make a Difference in the Community

16

List of Acronyms

52

Quality and Reliability

17

Memberships and External Initiatives

53

Enterprise Risk Management

17

Stakeholder Engagement54

Responsible Sourcing

18

Material Topics

56

Recognition21

Aspect Boundaries

57

Our Governance and Ethics

23

People, Planet, Profit Report

58

Governance Overview

23

Additional Data

59

Corporate Compliance and Ethics Program

23

2018 Global Reporting Initiative Content Index

60

Privacy

27

Contact Us

71

Public Policy and Activities

Page 2

Our Community

27

Our People

30

Overview

30

Commitment to Diversity and Inclusion

30

Recruitment and Retention

34

Learning and Development

35

Education Reimbursement

36

Lean Six Sigma

36

Employee Engagement

36

Performance Management and Employee Recognition

37

Employee Benefits

37

Human Rights

37

Health and Safety

38

Health and Wellness

39

Corporate Social Responsibility Report

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

In the past year, ON Semiconductor was named as one of the World’s Most Ethical Companies® for the fourthyear in a row, joined Forbes Fortune 500 as well as Fortune’s 100 Fastest Growing Companies list, invested
in new segments and placed significant emphasis on reviewing how our beliefs, assumptions, values andbehaviors align with our goals of future growth and a thriving work environment for our employees.
We remain steadfast in our belief that as the technology industries around us become more competitive, wewill continue to place corporate social responsibility at the forefront of how we conduct our business. With
continued growth in scale, technology and talent, we have prioritized our commitment to engineering a better tomorrow through ouractions today. Being a member of the Responsible Business Alliance (RBA) and signatory of the United Nations Global Compact, we havepledged to adhere to an industry code (RBA Code of Conduct) and international principles that promote labor and human rights, ethics,
and environmental, health and safety standards. As corporate social responsibility further embeds itself into our culture, we will continue
to encourage our employees to practice good corporate citizenship and set exceptionally high standards for ourselves, our products andour partners. As a testament of our commitment to transparency, we have published our 2018 Corporate Social Responsibility Report inaccordance with the comprehensive version of the Global Reporting Initiative (GRI).
As part of our dedication to corporate social responsibility, our organization prioritizes assisting communities in areas of disaster relief,
health services and science, technology, arts, engineering and mathematics (STEAM) education. Through our community initiatives, we
aim to create a relationship of mutual trust and respect between the company and the local communities in which we operate. The resultsof 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 human necessities. By working closely with associations,industry standards organizations and government entities such as ENERGY STAR®, the China National Institute of Standardization, andthe 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. We are dedicated to adhering to the increasing number of laws andregulations such as RoHS (Restriction of Hazardous Substances) and REACH (Registration, Evaluation and Authorization of Chemicals)
within our own manufacturing process as well as those of our suppliers’.
Tied to this, we have an in-house team dedicated to sustainability excellence that continually invests in engineering and administrative
controls to prevent unnecessary environmental pollution. Within our efforts, we are actively reducing our Scope 1 and 2 emissions,minimizing our consumption of energy, saving water and reducing chemical usage and waste generation. Our company also encourages
employees to consider various commuting options such as vanpooling, carpooling, bus or rail travel and bicycle use. Many of our global
sites offer employee trip reduction plans and monthly subsidies depending on location and local regulatory trip reduction requirements.
Additional sustainability achievements include the following:•• Since 2016, we have seen a company-wide reduction in normalized energy consumption by 16.8 percent at our wafer fabrication
operations and 9.7 percent at our assembly and test operations•• Our Phoenix, Arizona office has prevented roughly 9 tons of pollution annually through our vanpool program•• Our manufacturing site in Cebu, Philippines has conserved 35,000 kilowatt hours of energy through their compressor and vacuum
systems; this has equated to approximately $77,000 USD in savings

ON Semiconductor

Page 3•• Since 2016, our normalized water consumption has decreased by 17.3 percent at our wafer fabrication operations and 10.5 percent
at our assembly and test operations•• In 2018, the amount of total waste, hazardous and non-hazardous material from manufacturing and non-manufacturing sites that
we reused and recycled globally through our operations was 14,284,368 kilograms, while waste directed to landfill was 5,875,919
kilograms
In conjunction with reducing our waste, we have integrated the process of climate change into our business operations and strategy.
Through our environmental conservation programs, we focus on reducing our carbon footprint and improving the electrical and fuelenergy efficiency of our company’s operations through products such as solar inverters, efficient motors for fans, electric vehicles, power
conservation and the movement from coal to electricity. Our enterprise risk management and business continuity programs also consider
certain risks associated with climate change such as natural disasters and the associated impacts to our organization, the communities
where we do business, our operations, employees and stakeholders, and strategic business objectives.
And finally, but most importantly, our people. We have long remained committed to diversity and inclusion, recognizing that our company
is at its strongest when we effectively draw upon the wide variety of experiences, knowledge, culture, customs and backgrounds that
all of our 36,000 employees possess. We believe our company’s vision, values and culture afford opportunities for everyone to make adifference in building a successful global business. Our corporate social responsibility programs have grown from our core values andcontinue their climb as we create an innovative organization committed to positively impacting the places where we live and work, while
competing in and contributing to the exciting growth of the semiconductor industry.

Regards,
Keith Jackson
President and CEO

Page 4

Corporate Social Responsibility ReportREPORT OVERVIEW[G4: 102-46, G4: 102-54, G4: 102-56]

Our 2018 Corporate Social Responsibility (CSR) Report is prepared in accordance with the Global Reporting Initiative (GRI) Standards:
comprehensive option. The report further expands upon and provides updates to several topics covered in our previous report, which
was published in June 2018. Some of the topics included are our business profile, responsible sourcing, governance and ethics, diversity
and inclusion, learning and development, environmental sustainability and community involvement. The scope of the report includes ourworldwide subsidiaries and joint ventures for which we have management control. Environmental data covers leased and owned internal
manufacturing sites, which account for a majority of our environmental footprint worldwide. Data presented in this report covers the 2018
calendar year, while certain milestones highlighted have occurred in early 2019. Although we have not sought external assurance for thecontent of our 2018 CSR report, certain data included is subject to external review and all information provided is reviewed internally.
More information about our operations and financial statements is available in our 2018 Securities and Exchange Commission (SEC)
Form 10-K and 2019 10-Q.

ON Semiconductor

Page 5ENGINEERING A BETTER TOMORROW[G4: 102-16, G4: 102-18, G4: 205-1, G4: 412-1]

At ON Semiconductor, we are committed to engineering a better tomorrowthrough the actions we take every day. Corporate social responsibility (CSR) at
ON Semiconductor is deeply rooted in our core values of respect, integrity andinitiative. We provide our customers around the globe with a broad portfolio
of innovative, energy efficient and environmentally friendly semiconductor
solutions addressing virtually all market segments. Our CSR efforts focus oncontinually improving how we operate, whether it be related to our business,
our governance and ethics, our people, our environment or our communities.

Supplier
Engagement
RBA Initiatives
and Compliance

CSR
AuditsEmployee
Volunteerism

Conflict
Minerals
Corporate
Philanthropy

Sustainability

CSR Reportingand Assessments

As a full member of the Responsible Business Alliance (RBA) and signatoryof the United Nations (UN) Global Compact, we adhere to an industry code
(RBA Code of Conduct) and international principles that promote labor andhuman rights, ethics and environmental, health and safety (EHS) standards. We
recently formalized and launched a global human rights policy to reflect ourcommitment to preserving and protecting the rights of others as enshrined under the ten principles of the UN Global Compact as well asother international conventions and frameworks. Per our responsibilities as a RBA member, each of our manufacturing sites completes a
RBA self-assessment questionnaire (SAQ) and undergoes either an internal RBA audit or RBA validated audit process (VAP) audit eachyear. The target SAQ score for each of our facilities is 85 percent or greater, indicating no-to-low risk. In 2018, 100 percent of our facilities
met this target.

Page 6

Corporate Social Responsibility ReportCorporate Social Responsibility
Governance Structure
Board of Directors, Corporate Governance& Nominating Committee

President/CEO

CSR Organization

Management Approach
Having a strong CSR program requires a coordinated effort among various
departments and sites globally. Each of our manufacturing sites has a CSR
working team led by CSR site champions and regional subject matter experts.
The corporate CSR organization works closely with a steering committee
comprising of individuals from many departments and ultimately reports up to
our CEO and board of directors.

CSR Site Champions and Subject Matter Experts

CSR Steering Committee Composition
Legal

Human
Resources

Environmental
Health and Safety

Global Supply
Chain Operations

Other Integral Departments and Groups
Corporate Compliance andEthics Program

Security

Key Accomplishments

Supplier Due Diligence
As of December 31, 2018, 100% of the smelters we source from for 3TG were Responsible Minerals Assurance Process (RMAP)
conformant.

RBA Initiatives and Compliance
In 2018, our facility in Nampa, Idaho received a full score and platinum level recognition in their initial RBA validated audit
process (VAP) audit. We were invited by the RBA to share best practices at their annual conference related to RBA VAP audits due
to our audit performance.

Social and Sustainability Investment Assessments
In 2018, we were added to the North America Dow Jones Sustainability Index and included on Barron’s 100 Most Sustainable
Companies list. We achieved the highest score of “1” under the ESG pillars of the Institutional Shareholder Services Assessment.

Corporate Philanthropy and Employee Volunteerism
We introduced a dollars-for-doers program for our employees in North America in 2018.

Leadership

We were one of the founding members of CSR Board, an organization dedicated to being good corporate citizens through making
an impact globally with their sustainability and corporate social responsibility programs.

Human Rights

We formalized a global human rights policy and joined the UN Global Compact as a signatory.

ON Semiconductor

Page 7OUR BUSINESSOur Business
Overview[G4: 102-1 – G4: 102-3, G4: 102-5]

ON Semiconductor (NASDAQ: ON) is a publicly traded global semiconductor company headquartered in Phoenix, Arizona. We driveenergy efficient innovations, empowering customers to reduce global energy use. The company is a leading supplier of semiconductorbased solutions, offering a comprehensive portfolio of energy efficient power management, analog, sensors, logic, timing, connectivity,
discrete, systems on chip (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 2018 Securities and Exchange Commission (SEC) Form
10-K and 2019 10-Q.

Mission, Vision and Culture[G4: 102-16]

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.

VisionON Semiconductor will be the trusted supplier of choice for energy efficient innovations.

Core Values[G4: 102-16]

Our core values, 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 and shareholder value. By putting our core values of respect, integrity 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 receive a copy of our core values throughthe Code of Business Conduct, which is available in languages that represent our worldwide workforce.

ON Semiconductor

Page 9

Respect

Integrity

Initiative

We treat each other with dignity andrespect. We share information andencourage different views in an open
and honest environment. We drawout the best in each other, recognizingthat diversity of backgrounds andexperience are key strengths. We all
win when we support each other.

We mean what we say and say what
we mean. Our company has set
high standards for our products andindividual conduct. Our reputation
depends on the highest standards of
ethical behavior. We are accountablefor delivering our commitments on timewith highest quality. We address issues
objectively, using facts and constructive
feedback in a work atmosphere where
we do not fear open discussion orquestions. When a decision has been
made, we work to support it. We
comply with all legal requirements andhold ourselves to the highest standardsof ethical conduct.

We value people who demonstrate
a positive, “can-do” attitude, while
collaborating to win. We work
intelligently, with a sense of urgency,
while always maintaining ourcommitment to comply with applicablelaws, 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.

Our Culture[G4: 102-16]

We recognize the importance and need to intentionally and continually evolve our culture to support
our company’s strategy and employees. As such, through our culture alignment work, we are actively
reviewing whether our beliefs, assumptions, values and behaviors give us the competitive advantage
needed for future growth. Tied to this review, we are working toward how to better foster an inclusive
environment in which our employees can thrive and contribute their best. To determine the most effective
plan, employees are participating and engaging in a variety of ways as we move through the culturealignment work. We are optimistic that this journey will only enhance the workplace experience for all
employees and continue to strengthen our company.

Page 10

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

ON Semiconductor

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.

Environmental Stewardship

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

Page 11

Mergers and Acquisitions
In our highly competitive industry, we remain agile and strategic in order to meetbusiness and market needs. Since our spin off from Motorola in 1999, we have proudly
incorporated best practices and leaders from all of our acquisitions. Since announcing
our agreement with Fujitsu Semiconductor Limited in October 2017, we have purchased
60 percent ownership of the Fujitsu 8-inch wafer fab in Aizu-Wakamatsu. In 2018, we
also announced the acquisition of SensL Technologies Ltd. (SensL), a technology leader
specializing in Silicon Photomultipliers (SiPM), Single Photon Avalanche Diode (SPAD) and LiDAR sensing products for automotive,
medical, industrial and consumer markets. In 2019, we entered into definitive agreements to acquire Quantenna Communications, Inc.
and a 300mm GlobalFoundries fab located in East Fishkill, New York.

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

Page 12CMOS Image Sensor Business Unit

Advanced Sensor
Design Center

Corporate Social Responsibility ReportWorldwide Locations[G4: 102-4]

Manufacturing Locations:
Belgium, Canada, China, Czech Republic, Japan, Malaysia, Philippines, South Korea, the United States, and Vietnam

Design Center Locations:
Belgium, Canada, Czech Republic, France, Germany, Great Britain, India, Ireland, Israel, Japan, South Korea, Philippines, Romania,
Slovak Republic, Sweden, Switzerland, Taiwan, and the United States

Solution Engineering Center Locations:
China, Germany, Japan, South Korea, Taiwan, and the United States

ON Semiconductor

Page 13Brand[G4: 102-7]

Empowering Design Engineers to Reduce Global Energy Use
We have established ourselves 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 closelywith associations, industry standards organizations, and government entities
such as ENERGY STAR®, the China National Institute of Standardization andthe 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 up time-to-market for our customers and support the design of energy
efficient electronics, we provide online Power Supply WebDesigner™ tools andGreenPoint® 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.

Helping Customers Solve their Unique Design Challenges
We work closely and collaboratively with our customers to solve theirunique design challenges using innovative technologies, robust designs
and energy efficient products and solutions. We operate a global networkof solutions engineering centers (SECs), on-site customer design facilities
and applications-focused design and test labs, all supported by global
teams of field applications engineers working to meet the needs of our
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 2018, the company shipped more than 75.7 billion units
through our global logistics network,compared to 72.8 billion units in 2017. Our
company’s approximately 36,000 employees around the world are collaboratingwith customers, distribution partners and vendors to develop not only more
efficient silicon solutions, but also more efficient ways of doing business.

Page 14

Corporate Social Responsibility ReportCustomers[G4: 102-6]

Our customers can be categorized into 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
and selected regional accounts, which are significant in specific markets, are our core OEMs.
Distributors account for approximately 60 percent of our revenues in 2018 and typicallyresell to mid-sized and smaller OEMs and to electronic manufacturing service providers andother companies. These customers typically provide manufacturing services to OEMs.

Revenue by Type of Customers
6%
34%
OEMs
Distributors
Electronic Manufacturing
Service Providers

60%

Financial Strength[G4: 102-6 – G4: 102-7, G4: 201-1]

2018 Revenue:$5,878 Million

We demonstrate financial strength and efficiency through strong cash flow, a stable revenue 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.

Revenue by Market
Automotive

Consumer• Autonomous vehicles• Drones and sports cameras• Vehicle electrification• Flat screen TVs, STBs & game
consoles• Body electronics and lighting• Vehicle communication &power management

Communications &Networking

Computing• Notebooks, ultrabooks &2-in-1s• 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%

11%

• 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

13%

Industrial, Aerospace &Defense, Medical

18%

27%

Data presented is as of December 31, 2018.

Revenue by Region
10.6%

Revenue by Group
13.1%

16.1%

35.2%

14.7%
33.3%

25.3%

ON Semiconductor

United Kingdom
United States
Hong Kong
Singapore
Other

51.7%

Analog Solutions GroupPower Solutions GroupIntelligent Sensing Group

Page 15

How Our Products Make a Difference in the Community
As a global company with approximately 70 sites worldwide and over 29,000 products, we are proud to showcase our accomplishments
in enhancing our global community. We have components in medical devices, fitness trackers and smartwatches, autonomous vehicles,
electric vehicles, charging stations, and solar inverters, some of which are capable of replacing 70 coal-fired power plants – anaccomplishment for which we can all be proud!
Our company divides our products into three main groups: power solutions, analog solutions
and intelligent sensing, allowing our products to be well diversified and balanced. It is
likely you have used one of our products today without even realizing it. If you have talked
on a phone, driven an electric vehicle, have solar panels on you roof, used Bluetooth formusic or are reading this report from a digital device, you have likely crossed paths with an
ON Semiconductor product. As the Internet of Things (IoT) and cloud computing continue togrow, so will our presence in making our community more connected.

Page 16

Corporate Social Responsibility Report

Quality and Reliability
We have demonstrated our commitment to live by stringent, internationally-accepted requirements for reliability and quality. Showing
our commitment to do this, we launched our Road to Zero Defects initiative several years ago to eliminate quality excursions, improve 8D
responsiveness, lower our parts per billion (ppb)
defect rate and enhance our quality standards.
We recognize that incorporating theseobjectives in our service offerings, processes
and products will enable us to use our quality
and reliability as the fuel for growth of thecorporation. Ultimately, we are committed tomaintaining a distinctive, world-class quality
system, which transcends international quality
standards and aims to exceed customer
expectations. For more information, please see
our Quality and Reliability Handbook.

Culture of Quality
The key drivers embedded in our company’s focus on quality include employee ownership, leadership emphasis, message credibility
and peer involvement. Every other year, we administer a survey through Gartner® to measure employee understanding of our quality
initiatives and gain insights on employee perception of our quality program. The culture of quality survey results in 2016 placed us at the
top of the second quintile as measured against other companies. In 2018, we improved our culture of quality index ranking to the middleof the first quintile with approximately 80% of our employees responding to the survey. These results reflect improvement in employees’
perception of our quality performance over the last year due to our increased focus on reinforcing our quality culture and the positive
results of our Road to Zero Defects projects.

Enterprise Risk Management[G4: 102-11, G4: 102-30]

Overview
The goal of our Enterprise Risk Management (ERM) program is to systematically, consistently and effectively identify, evaluate, prioritize
and manage key opportunities and risks affecting our company. Our ERM program strives to develop a risk-aware culture across ourcompany and drive effective efforts to mitigate top priority risks, thereby enhancing the likelihood of achieving strategic objectives while
increasing the protection of our assets. The program includes distinct efforts to address both nearer-term existing risks, as well as longerterm emerging risks.

ON Semiconductor

Page 17

Through our ERM discipline, we categorize and assess risks across thefollowing groupings:•• Business and Strategic•• Emerging•• Financial•• Operational•• Technology/New Product Development•• Legal and Regulatory•• Compliance and Ethics•• Human Capital•• Reputational

Management Approach
Our ERM program is led by our chief risk officer and overseen by
our CEO and board of directors. The board of directors review ourcompany’s risk appetite framework and mitigation measures to address
relevant risks with management on a quarterly basis. The overall ERM
program is reviewed annually to assess the program’s development andeffectiveness. Supporting the day-to-day administration of the programis a comprehensive network of risk champions from all functional groups
within our company. Risk champions are trained to be ERM subject matter
experts within their organizations and lend credibility to the direction of
the program through their expertise, actions and guidance.

Enterprise Risk Management
Governance Structure

Board of Directors, Corporate Governance& Nominating Committee

President/CEO

Enterprise Risk Management Organization

Risk Champions

Risk Owners

Responsible Sourcing[G4: 102-9 – G4: 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 2018, we worked withover 10,000 suppliers and service providers in North America, Asia Pacific, Europe and the Middle East; of those suppliers, approximately
7,000 were production-related. The following graphic shows what percentage of our manufacturing sites’ 2018 procurement budgets
were spent on suppliers local to the site’s region.
ON Semiconductor’s Spend on Local Suppliers by Region (%)
91

90

90

94
82

Asia-Pacific

2017

89

78

EMEA
2016

Page 18

77

92

North America
2018

Corporate Social Responsibility ReportWe expect our suppliers and on-site service providers to follow the same CSR tenets that we have set for our own operations throughour Code of Business Conduct and the RBA Code of Conduct. We engage our suppliers in regular cycles by clearly communicating
our expectations, deploying risk assessments, providing training opportunities for capacity building, conducting verification audits
and addressing any non-conformance. During our last supplier engagement cycle in 2017, major suppliers signed their statement ofconformance agreements to our Code of Business Conduct and the RBA Code of Conduct. In 2018, our major suppliers were notified ofchanges to the RBA Code, version 6.0.

Supplier

Communication

We communicate CSR
requirements, including
the RBA Code of Conduct
through the Supplier
Handbook, Purchase
Orders and/or Service
Agreements.

Major suppliers and selectservice providers are
required to provide written
acknowledgement to
ON Semiconductor’s Codeof Business Conduct andRBA Code of Conduct

Supplier

Acknowledgement

Risk
Assessment

Major suppliers basedon spend and selectservice providers are
required to complete arisk assessment
covering the RBA Codeof Conduct.

Suppliers deemed risky
are offered complimentary
online training on the RBA
Code of Conduct to build
capacity and foster
improvement.

AuditsSuppliers deemed risky
are audited against the
RBA Code of Conduct.

Training

We work closely with our
suppliers to correct any
non-conformances
discovered during audits.

Corrective
Actions

Human Rights Due Diligence 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 thesourcing of such metals from the Democratic Republic of the Congo (DRC) and adjoining countries. We do not desire to eliminate thoseoriginating in the DRC and adjoining countries; however, we are committed to ensuring the conflict free sourcing of minerals from our
supply chain through collaboration with our suppliers and the RBA through the Responsible Minerals Initiative (RMI) (formerly known as
the Conflict Free Sourcing Initiative – CFSI). By using the Organisation for Economic Co-operation and Development (OECD) framework
and participating in responsibility initiatives, we have established a conflict minerals policy and related due diligence process to ensurethat minerals are not sourced from entities supporting armed conflict within the DRC and adjoining countries. In 2018, the OECD
Guidance Annex II expanded conflict minerals to include minerals with child labor or women abuse issues as well. Of the three newadditions of cobalt, graphite and mica, only cobalt is in our supply chain. Although it is low impact at this time, we are monitoring our
suppliers just as we do for the conflict minerals.

ON Semiconductor

Page 19

Identify

Identify all key suppliers with
3TG minerals minerals (tin,tantalum, tungsten and gold)
and cobalt in their products

Request information on
smelters and refiners using
standard due diligenceprocess from suppliers

AccessInformation

Risk
Assessment Use Reasonable Country of Origin

Disclosure

Inquiry (RCOI) report from RMI for
third party audit of smelter andrefiners related to 3TG

Conduct supply chain risk
assessment of 3TG and cobalt
and request for removal or
replacement of smelters thatare non-conformant as per
Responsible Minerals
Assurance Program (RMAP)

AuditsFile annual SEC reportand publish Annual
Conflict Minerals
Report for 3TG

In 2015, we achieved our road to zero unknown smelters. This means we are aware of and can trace the origin of the metals throughout
our supply chain. We hold our smelters responsible and align responsibility and transparency with our customers’ requests. Each year,
we target 100% Responsible Minerals Assurance Process (RMAP) conformant smelters and we achieved this target in 2018. However,supplier conformance and the incorporation of new requirements are an on-going process and such require continued review andupdates within our records. If we become aware that our supply chain includes uncertified minerals sourced from a conflict region, we
act promptly to review the circumstances and remedy the situation as appropriate.
Please see our latest SEC form SD for more information.

Page 20

Corporate Social Responsibility Report

Recognition

Our Company
Fortune: Rank #492

Fortune: Rank #13

Fortune: Rank #63

Fortune 500: America’s Biggest Companies

Forbes Digital 100 — 2018

100 Fastest Growing Companies

WME: 4 Consecutive Years

Dow Jones North America Sustainability Index: 1st Year

Our Products
Editor’s Choice Award
Editor’s Choice Award
China Electronic Market Magazine
LC717A3OUJ Proximity Sensor

ON Semiconductor

Consumer Electronics Show (CES) 2018
AR0430 complementary metal-oxide
semiconductor (CMOS digital image sensor)

Top 10 Power Product
Electronic Products China & 21ic.com
NCP1568 Active Clamp Flyback Controller

Page 21

OUR PRINCIPLESOur Governance and Ethics
Governance 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 theboard of directors. The board has at least four scheduled meetings annually at which they and the various committees, review and discuss
reports by management and the performance of the company. Our corporate governance principles further set forth certain requirements
under which the board and management operate.

Board of Directors Summary
Governance Practices
Total board size

10

Independent directors

Nine

Women on the board

Two

Age limit

75 years old

Board breakdown by age and gender

Gender: Female – 2; Male – 8
Age: 53, 56, 57, 61, 63, 63, 63, 65, 70, 71

Number of board meetings annually• Audit committee

Quarterly at minimum and additional meetings as deemed appropriate• Compensation committee

Twice per year at minimum and additional meetings as deemed appropriate• Corporate governance and nominating committee

Twice per year at minimum and additional meetings as deemed appropriate• Executive committee

As deemed appropriate• Integration oversight committee

As deemed appropriate• Science and technology committee

Twice per year at minimum and additional meetings as deemed appropriate

Taxes paid to government

See 2018 SEC Form 10-K

Corporate Compliance and Ethics Program

Oversight andAccountability

Risk
Assessment[G4: 102-16 – G4: 102-17]

ON Semiconductornd Ethics
Lia
nce a
iso
plia
m
n
o

Our Code of Business Conduct (Code) outlines the broad principles of legal and ethicalconduct embraced by our company and our core values of respect, integrity, and initiative
guide every business decision. Paired with this is the responsibility of each employee
to comply with those laws and regulations, embrace our core values and exemplify ourcommitment to operating ethically.

s

Corporate
Compliance andEthics Program
Prevent

Training,
Communications
and Engagement

DetectRespondC

Our Corporate Compliance and Ethics Program (CCEP) is designed to assist us inpreventing, detecting and responding to unethical or illegal conduct and promote an
ethical and legally compliant business culture. To do this, compliance and ethics areintegrated into every level of our company from the board of directors and CEO to eachindividual employee.

Policies,
Procedures
and Tools

Program Testing
and Continual
Improvement

Monitoringand Auditing
Reporting,
Investigations,
Discipline andIncentives

Page 23

The CCEP provides a procedural framework for enhancing and monitoring our compliance with the Code, the policies referenced in the
Code and other rules or regulations governing 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 DoddFrank Wall Street Reform and Consumer Protection Act of 2010 and the Listing Rules of NASDAQ Stock Market Inc.

Program Mission
The CCEP strives to go beyond meeting the legal and regulatory standards in the countries where we operate and instead aims to
implement ethics principles into everyday business operations by providing relevant training, targeted communications and dedicatedresources. We aspire to be a global leader in demonstrating the power of aligning business objectives with doing the right thing.

Management Approach
The chief compliance and ethics officer (CCEO) is responsible for administeringand executing the CCEP, including the Code and related policies and procedures,risk assessments, monitoring and auditing, investigations into potential businessmisconduct, employee education and awareness and continual program improvements.
The CCEO is supported by a cross-organizational CCEP Committee, a CCEP officecomprising three full-time employees, six assistant compliance and ethics officers, anda growing network of compliance and ethics liaisons (CELs) located throughout ourworldwide locations.
The audit committee of the board oversees and regularly reviews the company’s CCEP
activities and trends. The CCEO and his team provide a quarterly update to the audit
committee, and as necessary the full board of directors, on individual incidents and theoverall operation of the program.
Ethics is a top-down and a bottom-up process at our company and every employee isencouraged 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 accountable for delivering on those expectations. Our
team members are empowered and encouraged to report potential concerns and torecognize extraordinary commitments to our core values.

What it Means to be a Compliance and Ethics Liaison (CEL)
In 2018, we added new CELs across the world, coinciding with our continued growth as a company andreflecting the CCEP’s commitment to assuring an ethical culture throughout our global operations.
CELs are employees of all job functions and grade levels in the company who serve as ambassadors of the
CCEP. In their role, CELs provide assistance by:•• Helping strengthen our company’s ethical foundation•• Inspiring trust in the CCEP and motivating others to speak up•• Promoting a culture of integrity by serving as trusted advisors to their peers

Page 24

We have45 CELs at
our sites
globally

Corporate Social Responsibility ReportThrough quarterly calls, CELs get the chance to review case studies, share best practices, receive training and discuss trends in thecompliance and ethics field. In addition, the CCEP office holds an annual conference where all contributors to the CCEP function,
including CCEP committee members and CELs, come together to gain new skills, enhance their compliance and ethics acumen anddiscuss ways to improve the program. These events help keep the program focused and help assure program consistency across the globe
and throughout the layers of our company.
The availability of CELs gives employees access to a peer to whom they can raise potential concerns outside of human resources andtheir management chain. The accessibility of this additional reporting channel helps our company integrate compliance and ethics into
our culture by building trust at the local level. We consider the that fact that employees choose to raise concerns to CELs more than any
other channel a reflection of the strength of the program. Of course, employees also have the option of using the ethics hotline, whichis available online and toll-free by phone, 24-hours a day, seven days a week with translators available in all languages where we dobusiness. Except as restricted by law, employees may make reports to the ethics hotline anonymously.
Number of Incident Reports and Requests for Advice by Reporting Channel
156

102
61

10

12

CCEO

15

48

50

24
1

3

11

5

Assistant CCEO

CEL

Hotline
2016

10

11

Human resources
2017

12

21

28

27
8

Security

3

9

1

Legal

7

Other

2018

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

Program Trust
We believe employees’ trust in the CCEP is best measured by their trust in our NonRetaliation Policy. Employees who trust that reporting concerns will not affect them ortheir careers are more likely to speak up. We consider our maintenance of a speak-up
culture a key performance indicator (KPI) for the success of the CCEP.
We published our Non-Retaliation Policy in 2015, formalizing our belief that it isto everyone’s benefit to have an open and honest environment where employees
are not afraid of voicing their concerns. The goal of this policy is to encourage andprotect those who, in good faith, report an issue, seek guidance or participate in an
investigation.

Total Number of Reports
and Requests for Advice
101
Total Number ofIncident Reports

157
216

36
Total Number ofRequests for Advice

49
77

2016

ON Semiconductor

2017

2018

Page 25

In the spirit of driving continuous improvement, the CCEP conducts a biennial survey
dedicated to measuring employees’ perception of ethics at our company. The 2017
results of this survey revealed that, within two years since the policy’s launch, morethan 87 percent of employees believe we follow and support our policy of nonretaliation against those who report actual or suspected misconduct in good faith.
Even more telling, over 84 percent of our employees believe their manager follows andsupports our Non-Retaliation Policy.

Reporter Anonymity Rate

62%

61%

69%

38%

39%

31%

2016

2017
Anonymous Reporters

2018
Self-Identified Reporters

Substantiation Rate

Another indicator of trust is the utilization of the CCEP reporting channels. Employees
have access to a number of reporting channels, including the ethics hotline, a network of
45 CELs and members of the CCEP office, and direct access to assistant compliance andethics officers and the CCEO. An overwhelming majority of all inquiries (72 percent) sent
to the CCEP are transmitted via a local CEL.

52%

48%

2016

65%

62%

35%

38%

2017
Non-substantiated Reports

While survey results and reporting numbers are encouraging, it is our goal to continually
improve the CCEP by refining existing policies, clarifying processes and delivering customized, effective training.

2018
Substantiated Reports

Program AwarenessOur company’s Code is central to our CCEP, embodying our expectations around legal and ethical business conduct in employees’ day-today activities that relate to the company. It is available for employees to review in 14 languages, making it easily accessible to employees
in all regions where we do business.
The CCEP office reviews the Code annually and every year we require the board of directors and all employees to read and acknowledge
their understanding of the Code by taking an online training course.
We also require managers and other select individuals to complete additional compliance-related training courses related to topics suchas anti-corruption and privacy.

2018
Top Corrective Actions

55% Education
20% Process
Improvement
15% Formal Discipline
10% Other
Page 26

Corporate Social Responsibility Report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) Corporate Compliance and Ethics Week. The event is an opportunity tohighlight the importance of ethics and compliance in the workplace and build awarenessin ways that reinforce not just specific rules and regulations, but an overall culture ofcompliance. In 2018, Global Compliance and Ethics Week focused on raising the awarenessof personal relationships and conflicts of interest in the workplace. Additionally, we included
topics related to CSR to highlight the advancements of both programs and reinforce what
employees learn during the annual Code and CSR 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.

Annual Online
Compliance andEthics Training

CCEP
Townhalls,
COBC Roadshows
and CCEP &CSR Week

Targeted, Live
Compliance andEthics Training

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, we
appointed a chief privacy officer and undertook a thorough review of corporate
policies and practices to assure compliance to the standard. Targeted privacy
trainings were deployed globally to functional teams most directly impacted by the
GDPR, including information technology, finance, human resources, procurement
and legal. Additionally, all employees receive privacy awareness training toincrease individual sensitivity to the importance of protecting private data. For
more information on our privacy policy, please visit our external website.

Public Policy and Activities
We support public policies that encourage the innovation, investment and open markets necessary to advance our 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 headquartered in the United States, interacting regularly with government agencies around the world. Much of our public
policy advocacy is performed through the U.S. Semiconductor Industry Association (SIA), although our company is also a member of local
associations in the regions in 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 make recommendations 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 andopen markets.

ON Semiconductor

Page 27

Among the public policies that we supported in 2018 were the following:
Open markets

In the spring of 2018, President Trump initiated a process that led to the imposition of 25 percent tariffs on $50
billion of imports from China including tariffs on discrete semiconductors in July and on integrated circuits in August.
Throughout the process, we worked with our trade association to oppose the imposition of tariffs and, in the fall of
2018, partook in the process established by the U.S. Trade Representative and filed six applications to exempt certain
semiconductors from these tariffs. Three of the applications submitted were rejected and three remain pending.

Workforce development

We worked with the SIA to support a U.S. government roundtable discussion on the need to develop a competitive
workforce of talented individuals, including factory production workers, scientists, engineers and business managers
who can work in a global, culturally diverse organization to design, manufacture and sell the most complex deviceson the planet. The workshop explored the challenges of developing such a workforce and the federal policies that
can help industry address the challenges.

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 orsafety consequences. In 2018, we assisted law enforcement to identify and seize counterfeit goods, and remove
them from the marketplace.

Energy efficiency, fueleconomy andautomotive safety

We work as an ally member of American Council for an Energy-Efficient Economy (ACEEE), a thought leader onenergy efficiency policies and programs. These policies are often related to “plug loads” such as LED lighting,variable speed motors in Heating/Ventilation/Air-Conditioning (HVAC), and smart buildings. “Energy efficiency”
also includes transportation efficiency including fuel economy standards. Additionally, we are a member of Motor& Equipment Manufacturing Association (MEMA) which advocates for legislation and regulations related to fueleconomy and automotive safety such as Advanced Driver Assistance Systems (ADAS) including automatic emergency
braking, as well as policies to facilitate the introduction of autonomous vehicles.

Political Contributions[G4: 415-1]

In the U.S., companies and other organizations may organize political action committees (PACs) to support political candidates with funds
voluntarily contributed by qualified employees. We chose not to have a PAC and did not make any political contributions in our company’s
name in 2018.

Page 28

Corporate Social Responsibility ReportOUR PEOPLE

Our People
Overview[G4: 102-7, G4: 405-1]

Our global community of employees are 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 2018, we had
approximately 36,000 employees operating globally.
Worldwide Workforce by Region

11%
6%

Workforce by Gender

13%

20%

70%

Americas

Management by GenderAsia (excluding Japan)

Japan

55%

EMEA

45%

FemaleMale

80%

FemaleMale

U.S. Workforce by Ethnicity
American Indian or Alaska Native

0.3%

Asian

17.2%

Black or African American

1.6%

Hispanic or Latino

4.6%

Native Hawaiian or other Pacific Islander

0.2%

Two or more races

1.9%

White

64.1%

Undeclared

10%

Commitment to Diversity and Inclusion

Overview
We have long remained committed to diversity and inclusion (D&I), recognizing that our company is at its strongest when we effectively
draw upon the wide variety of experiences, knowledge, culture, customs and backgrounds that all of our employees and leaders possess.
As a company, we celebrate differences and promote an inclusive environment by valuing the contributions of our employees andthe knowledge of diversity that goes beyond race, ethnicity and gender. Diversity is about understanding and embracing the uniquedifferences, talents and perspectives of employees, customers and suppliers. Diversity of thinking helps us continue to encourage thecreativity and innovation necessary for us to maintain a competitive advantage in the global marketplace.

Page 30

Corporate Social Responsibility Report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 toward a more diverse workplace that benefits our company and enables us to meet the needs of ourcustomers, suppliers, employees and shareholders worldwide.
In 2018, our organization took a huge step in setting the tone and prioritizing diversity and inclusion with the addition of diversity metrics
to our corporate bonus plan. We continued the process of benchmarking our internal perceptions of diversity and inclusion practices
against other industry leaders and also partnered with National Business Research Institute (NBRI) on our first-ever pulse survey, which
was taken by a sample of employees around the globe. We also participated as a presenter at the Association to Advance Collegiate
Schools of Business (AACSB) D&I Summit on the topic, “Diversity and Inclusion at ON Semiconductor - Best Practices from a Fortune 500
Company”.

Diversity and Inclusion Framework, Vision and Mission
Diversity and inclusion at our company operates with the vision and mission of cultivating a culture where diversity and inclusion isembedded in everything we do. Our framework focuses on workplace inclusion, workforce diversity and community partnerships, all ofwhich we hope expand our positive impact on the greater communities surrounding the places we work.

Policies and Practices
Development and Training
Communication and Awareness
Fill the Talent & Succession Pipeline
Measure Success
In 2018, we outlined our strategy around diversity and inclusion by establishing our integrated plan in which no part of our company
operates separately. The diversity and inclusion integrated plan is made up of five pillars: (1) policies and practices, (2) development andtraining, (3) fill the talent and succession pipeline, (4) communication and awareness and (5) measure success. To further our efforts,
we resourced a full-time team to focus on fostering efforts on diversity and inclusion. With this initiative, global strategies and programs
began incorporating diversity and inclusion into their succession planning process, and implementing criteria for diverse candidate pools
and interview panels as part of our candidate recruitment process.
After initial piloting in 2017, we delivered the breakthrough leadership program in 2018, which focuses on advancing women at ourcompany globally. We have also added diversity inclusion modules to our learning and development (L&D) offerings, along with online
unconscious bias courses.

ON Semiconductor

Page 31

In 2018, we hosted meetings in Asia with site leadership on diversity and inclusion strategy, and workshops for emerging female leaders.
In 2019, we plan to rollout similar meetings to Japan and EMEA regions.

Women’s Leadership Initiative (WLI)
group launchedAffinity Network Groups (ANGs) launched• Diversity metrics added to corporate bonus plan
• D&I Benchmarking –Integrated Plan (roadmap) established• Diverse candidate pool and interview panel• US pay equity assessment

2014
2015

• Diversity and Inclusion Council launched• D&I Vision, Mission and Framework established2017• Sr. Manager of Diversity & Inclusion hired• D&I incorporated into succession planning process• D&I training added to L&D leadership development model• Mentorship program for Sr. Female Leaders

2019• US paternal leave policy launched• Formalized global human rights policy• Conducted global pay equity assessment• Diversity indexes

2016

2018

Management Approach
The Senior Leaders Diversity and Inclusion Council is a governing body that provides
leadership, direction and support to make us a more diverse and inclusive company.
Through the council, we continue to support our affinity network groups: Cultivate,
Employee Activity Committee, STEM UP (science, technology, engineering and mathfor underrepresented populations) and Women’s Leadership Initiative. These groups
help facilitate networking, mentoring, cultural awareness, recruitment, employee
development and retention, along with increased collaboration and innovation.
Charters for all of the affinity network groups align seamlessly with our core values
and diversity and inclusion framework.

Page 32

Diversity and Inclusion
Governance Structure

Board of Directors

President/CEO

Diversity & Inclusion
Organization

Diversity & Inclusion Council

Affinity Network Groups

Employee Activity Committee, Cultivate, STEM UP, Women’s Leadership Initiative

Corporate Social Responsibility ReportEmployee
Activity

Cultivate

STEM UP

Women’s
Leadership
Initiative

Affinity Network Groups Key Highlights
MissionKey 2018 Highlights

Empower and support women to succeed throughprofessional development in business, strategic andfinancial acumen.

•• Hosted an event with a panel of female executives inoperations and manufacturing from ON Semiconductor,
Medtronic and NXP.
•• Launched quarterly financial acumen sessions with senior
female leaders and held 17 women’s leadership workshops
in nine countries.

Develop and retain a diverse workforce thatwill positively affect our company’s outcome
with regard to innovation and performance. Our
programs will be focused on retaining employees
at ON Semiconductor and developing new talent in
the local area for the underrepresented population.
Our key focus areas are recruitment, retention andservice leadership.

•• Attended two regional conferences for the National Societyof Black Engineers and national conferences for the Society of
Hispanic Professional Engineers, IEEE Women in Engineeringand Society of Women Engineers.
•• Increased the number of ambassadors to help new hires
acclimate to our company by 83 percent.
•• Worked with local schools and nonprofits to serve and inspire
children from under-represented populations including AZ
Sci-Tech Council, Finger Lakes STEM HUB, SEMI Foundation,
Future Stars, Inc. and Centennial Elementary School in
Nampa, Idaho.

Unite a group of diverse generations who arecommitted to engaging in the workforce andenhancing our collaborative company culture. We
are committed to understanding all generations in
the workplace and connecting ON Semiconductor
with the developing workforce community.

•• Hosted several lunch and learns with topics such as“Managing a Multigenerational Team”.
•• Held a community service project for Weekend Hunger
Backpacks.

Facilitate community service and employee
engagement activities.

•• Held several volunteer activities, an open house for families,
Veterans Day celebration, holiday celebrations and several
other events to strengthen employee engagement andmorale.

Equal Opportunity Employment
We are an equal opportunity employer. Our company maintains policies and practices that are designed to prevent discrimination
against any qualified applicant or employee to the extent prohibited by federal, state and local laws and regulations. By way of example,
discrimination on the basis of race, ethnicity, color, religion, ancestry, national origin, citizenship, sex, age, marital status, sexual orientation,
physical or mental disability, medical condition (including pregnancy and childbirth), genetic information (including test results) andstatus as a Vietnam-era or special disabled veteran, political affiliation, union membership, gender identity or expression, or any othercharacteristic protected by law is prohibited.
Our policy of non-discrimination applies to all employment practices, including hiring, placement, promotion, compensation, benefits,
training and termination. Equal opportunity can only be achieved through leadership, commitment and implementation of our diversity
and affirmative action programs.
ON Semiconductor

Page 33

Recruitment and Retention[G4: 401-1]

We proactively seek new candidates to add to our innovative and customer-oriented organization. We look for talented candidates who
desire challenging, empowering and engaging careers. To diversify our workforce, we recruit university graduates and candidates fromunderrepresented groups who bring various perspectives and diverse knowledge to our company.
Rate of New Hires
By AgeBy Gender

By Region

7%

10%
11%

35%

<30 Years Old

58%

30 – 50 Years Old

53%

47%

Over 50 Years Old

Female

11%

Male

68%

Asia

Japan

Americas

EMEA

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

Transfers Globally by Gender

32%
36%
64%
68%
FemalePage 34

Male

FemaleMale

Corporate Social Responsibility ReportLearning and Development[G4: 205-1, G4: 404-2, G4: 412-2]

Overview
As a company, we are committed to providing career advancement anddevelopment opportunities to our employees. Our learning and development(L&D) group’s mission is to drive skill development and effectiveness of ourglobal workforce through innovative learning solutions. The four focus areasof L&D at our company include career ladder, learning opportunities, employee
skill building and compliance training. Corporate L&D oversees the learning
function within our company from a strategic standpoint by supporting
business units, departments and international partners in specialized content
creation, oversight and vendor recommendations.
In an effort to provide a wider scope of leadership development opportunities, we have modernized ourleadership development model. The new model framework features an array of courses specifically curated
for leads, people managers and senior leaders. In addition to our variety of instructor-led training offerings, we have an array of online
learning courses through Skillsoft Leadership Advantage, a program comprised of eight leadership topics including leading
strategic ability, management, self-management, talent management, working with others, analytical skills and businessacumen. In 2018, over 1,700 employees attended trainings in their local sites and office.
In 2018, we also issued a global rollout of SABA, a learning management system that allows our employees to stay current
with training needs, including our compliance modules.

Compliance Training
Compliance training is required for new hires when they first join the company and for existing employees on an annual basis. The
mandatory courses include code of business conduct, corporate social responsibility, information security awareness and preventionof discrimination and harassment. Every other year, we also require managers and other select individuals to complete additional
compliance-related training courses such as anti-corruption. Our employees completed the anti-corruption stand-alone module during
our 2017 annual compliance training campaign.

ON Semiconductor

CourseCompletion Rate

Code of Business Conduct

100 percent(Asia: 23,557; North America: 4,479; EMEA: 3,785)

Corporate Social Responsibility

100 percent(Asia: 23,547; North America: 4,479; EMEA: 3,782)

Information Security Awareness100 percent(Asia: 23,540; North America: 4,480; EMEA: 3,784)

Prevention of Discrimination and Harassment

99 percent(Asia:24,456; North America: 4,255; EMEA: 3,727)

Page 35

Education Reimbursement
Our newly launched Global Educational Opportunities (GEO) Program provides monetary assistance to qualified employees who choose topursue college or university diplomas and degrees. We offer this program to encourage employees to increase their technical competencies
and deliver value-added contributions toward company objectives. Employees may receive assistance for courses, certification programsand degrees for furthering their formal education.

Executive Roundtable Program
The Executive Roundtable Program was developed from the 2015 employee engagement survey feedback and is designed to support
the corporate initiatives around communicating strategy and strengthening career development. This program recognizes and supports
high performing employees by creating learning opportunities for employees and providing them with exposure to the executive team. In
2018, a mix of eight senior vice presidents and executives, including our chief operating officer, chief finance officer and chief information
officer, met with 73 employees in eight different locations around the world as part of this program.

Lean Six Sigma
Our Lean Six Sigma (LSS) program uses a structured methodology to improve business processes bycombining 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 cost and increases customer satisfaction. We deployed LSS companywide in early 2015 andhave made significant system improvements compared 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

67 Black Belts &486 Green Belts
have been certified
globally andcompleted morethan 300
projects

Employee Engagement
On a biennial basis, our company conducts an employee engagement survey to measure our employees’ perceptions of their jobs,
the company and extent to which they feel supported. Understanding this information allows the company to have insight into ouremployees’ perspectives, which are used to address potential improvement opportunities.
Overall Employee Engagement Perfomance by Year/Percentile
90
63

66

75

69
50

ON
Semiconductor
2015

Page 36

ON
Semiconductor
2015

ON
Semiconductor
2015

Industry
Average
2018

Stretch
Performance
2018

Best-inClass2018

Corporate Social Responsibility ReportIn addition to the biennial survey, we deployed our first pulse survey through the National Business Research Institute (NBRI) in October
2018. The pulse survey is an abbreviated engagement survey designed to measure progress and ensure we remain focused on critical
employee feedback and input from the extended biennial 2017 engagement survey. Five-thousand employees from across the company
were selected randomly and invited to complete the survey; of those invited, 3,150 (63 percent) employees participated. Additionally, weachieved an overall engagement score of 69 percent, exceeding our 2017 biennial score of 65 percent. Since the pulse survey is intended
to be a check-in event, the results were reviewed to ensure alignment with the 2017 action plan progress. As such, formal and in depth
post-action activities are reserved for the biennial survey.

Performance Management and Employee Recognition[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 performance management process by setting clear expectations, delivering regular feedback,identifying career paths and development opportunities, properly evaluating performance and linking it to compensation clearly, andrecognizing and rewarding top performers. In 2018, all of our employees received a performance appraisal.
In order to recognize individuals and groups who make clear differences to our company and stakeholders, we offer our employees avariety of reward and performance recognition programs. These programs include competitive base salaries, performance based cash andequity awards, an employee stock purchase plan (subject to location), comprehensive health care plans and company contributions toretirement plans to ensure our employees have the means to adequately prepare for life after ON Semiconductor.

Employee Benefits[G4: 201-3]

We recently introduced a paid parental leave of absence to eligible employees in the U.S. The Paid Parental Leave of Absence Policy offers
eligible employees up to four weeks of time off at 100 percent of their regular base pay. This policy runs concurrently with the Family
Medical Leave Act and any state or other leave laws providing job protection to new parents. To learn more about benefits offered by ourcompany to our employees globally, see our regional benefits summaries online and 2018 SEC Form 10-K.

Human Rights
We recently formalized our commitment to preserving, protecting and promoting the fundamental rights of others as reflected in the
Responsible Business Alliance (RBA) Code of Conduct, Universal Declaration of Human Rights, United Nations (UN) Guiding Principles
on Business and Human Rights, and UN Global Compact to which we are a signatory. Our commitment to international human rights
standards and local laws are rooted in our core values and reinforced through our Code of Business Conduct and other company policies.
For more details on our human rights policy, please visit our external website.

ON Semiconductor

Page 37

Health and Safety[G4: 403-1 – G4: 403-5, G4: 403-7 – G4: 403-8]

Overview
Our health and safety programs are based on our company’s environmental, occupational health and safety policy and are a priority ateach of our sites. Establishing a healthy and safe environment allows our employees to come to work each day without fear of injury orillness and is vital to the quality of life of our employees and 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 and corrected in both manufacturing and non-manufacturing situations. Our non-manufacturing sites follow our internal
procedures and local regulations related to health and safety, while our manufacturing sites conform to Occupational Health and Safety
Assessment Series (OHSAS) 18001 specifications. In 2014, we implemented an external audit and certification to OHSAS 18001 and selfdeclaration of conformance by corporate audits and quarterly reviews. In total, approximately 83 percent of our workforce is covered by
the OHSAS management system, which has been verified through internal audits. Approximately 80 percent of our workforce is coveredby the same management system and has also undergone external certification.

Safety Standards and Programs
Our safety standards are applicable to all facilities globally and allow us to continuously maintain and improve health and safety work
areas. Procedures regarding emergency preparedness, hazardous materials, industrial hygiene and health resources, and safety arestandardized throughout our company and information is shared with all sites to promote a transparent and reliable culture that further
mitigates health and safety risk. All employees receive new hire safety training and many receive special safety training depending on his
or her area of responsibility and associated risks.
To protect our employees, we enforce engineering controls and the use of personal protective equipment based risk analyses conductedby members of our EHS team members. Health and safety risks for activities are identified and addressed while considering other factors
such as processes and tasks, equipment and machinery, environment, location and trends. Once risk exposures have been assigned a risk
rating, a risk control plan is developed with key priority areas for action and then tested for effectiveness.
In 2015, we launched our safety culture transformational program and have since seen improvements in our performance. Daily workplacesafety inspections are performed by employees at their areas to make sure that there is no unsafe condition present. Our employees reportunsafe conditions and acts in order to prevent near misses or more serious incidents. Employees are also encouraged and trained to stop
their work or work of others if an unsafe condition and/or act is observed. Managers of departments discuss safety matters with their staff
weekly and site top managers are required to do so monthly. Employees are encouraged to indicate safety issues or positive observations
during these meetings. Additionally, we have also implemented a peer to peer job safety review program in all of our factories so that
employees can provide effective feedback to one another unsafe habits, acts or conditions.
Within our safety culture program, there are five levels with one being the lowest and five the highest. Each level has criteria that isrequired to be met in order to progress from one level to the next. In 2015, each of our manufacturing sites started at level one. In 2018,
most of our sites achieved a verified level two or three performance, with a few sites achieving level four; opportunities for improvement
continue to be identified to improve our safety culture in 2019.

Page 38

Corporate Social Responsibility ReportTo embed a strong safety culture within our organization, employees are encouraged and incentivized to report unsafe acts or conditions
through their management, EHS department or our anonymous ethics hotline.

Health and Wellness[G4: 403-3, G4: 403-6]

As a company, we are committed to creating a culture of wellness andnurturing a healthy and productive workforce. For us, wellness includes
many different dimensions of physical and emotional health, social support,
spiritual wellness and financial success. Although there is a clear advantage
to having a healthy, focused workforce, we also believe that leading ahealthy lifestyle outside of work is just as important.

Physical health

We offer programs focused on nutrition, weight loss, physical fitness and the avoidance of unhealthy habits likesmoking, drinking and drug use. Several of our sites offer subsidized gym membership plans, access to fitnessclasses and/or on-site gym facilities.

Medical healthSome of our sites have employed occupational health resource specialists while others have in-house clinics. We
also contract doctors in certain locations who provide services for employees. We offer comprehensive healthinsurance plans and many of our sites also organize annual physicals and preventative health screenings. We
abide by the European Union General Data Protection Regulation (GDPR) to protect privacy of all employees.

Emotional/Mental

Employees at many of our sites globally have implemented employee assistance programs whereindividuals can consult with specialists as a first line of support for mental wellbeing issues.

On-Site Basketball Court in Cebu, Philippines

ON Semiconductor

On-Site Dental Clinic in
Carmona, Philippines

On-Site Gymnasium in Pacatello, Idaho, USA

Page 39OUR PLANETPage 40

Corporate Social Responsibility ReportOur Planet
Overview
We are committed to a greener world by keeping sustainability at the forefront of our operations. We work to reduce Scope 1 and 2
emissions, minimize the consumption of energy, save water and reduce chemical usage and waste generation. With an in-house teamdedicated to sustainability excellence, we have achieved marked successes within our many conservation programs, all of which are vitalto the success of our semiconductor device manufacturing business. We continually invest in engineering and administrative controls toprevent environmental pollution in the form of waste disposal, air emissions and industrial wastewater emissions; our company meets orexceeds legal requirements for environmental protection. Air and industrial wastewater emissions are treated using effective technology
and employees are trained to conduct procedures that prevent unnecessary 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 suchas RoHS (Restriction of Hazardous Substances) and REACH (Registration, Evaluation and Authorization of Chemicals) within our own
manufacturing processes as well as those of our suppliers’. We continuously work with our suppliers to certify that our products are freefrom 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 from which ourcompany implements, maintains and improves our environmental management system.
Procedures for our environmental management system conform to the International
Organization for Standardization (ISO) 14001 certification. Compliance with andcertification 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 communications and third-party verification
are emphasized under ISO 14001.

2018 Sustainability Project
Savings in $USD
$513,315$3,855,800$2,246,094

RecycleEnergy Conservation
Water Conservation
Chemical Waste Reduction
Material Optimization

Global Environmental, Health and Safety
Governance Structure
President/CEO

Board of Directors, Corporate Governance &Nominating Committee

Global Environmental, Health & Safety Organization

Regional Environmental, Health & Safety(North America, EMEA, Asia)

We set five-year targets on our environmental conservation performance forour wafer fabs and assembly and test operations. We have targeted a 5 percent
normalized reduction in water usage, electricity consumption, and Scope 1
and 2 emissions combined. Additionally, for chemical usage, we have targeteda 5 percent reduction in absolute facility chemistry and 3 percent normalized
reduction in manufacturing chemistry. Each of our factories is also engaged in
multiple sustainability projects aimed at recycling, material optimization, reducing
chemical usage and conserving water, electricity and fuel. For each of these goals,
we use our 2015 performance as our baseline year.

$322,130$377,791

ON Semiconductor

Page 41

Climate Change[G4: 201-1]

We are aware of the potential opportunities and risks associated with climate change and have integrated the process of climate change
into our business operations and strategy in a number of ways. Through our environmental conservation programs, we focus on reducing
our carbon footprint and improving the electrical and fuel energy efficiency of our company’s operations. Our enterprise risk management
and business continuity programs also consider certain risks associated with climate change such as natural disasters and the associatedimpacts to our organization, affected cities, operations, employees, stakeholders and strategic business objectives.
In addition, increasing energy demands and greenhouse gas emissions are driving a global mandate for energy efficiency and reduced
emissions, including the replacement of fossil fuels by clean alternative energy sources. Government regulations for improved energy
efficiency in countries such as the U.S., United Kingdom, France and China are further enforcing this mandate. Fortunately, ourcomprehensive portfolio of power, analog and intelligent sensors, and connectivity products are intended to minimize power consumption
and improve energy efficiency. Examples of these products include solar inverters, efficient motors for fans, HVAC units, power tools,
power conversion (as a part of the shift toward renewable energy), electric cars and the general movement from coal to electricity.

Scope 1 and 2 Emissions[G4: 305-5]

We are dedicated to reducing our energy consumption and overall carbon footprint by 5 percent from 2016 to 2020. Normalized Scope
1 and 2 emissions combined have reduced by 8 percent at wafer fabrication operations and 13.4 percent at our assembly and test
operations since 2016. We have reduced emissions by 16,124 metric tons of CO2 equivalent through 58 projects in nine countries in2018.
Scope 1 and 2 Emissions at Wafer Fab Operations

Scope 1 and 2 Emissions at Assembly and Test
Operations [kg CE/Unit][kg CE/Unit]
39.00

280.0038.72

276.53

38.27
38.00

270.0037.00

260.00

36.00

35.33

35.58

250.0035.00

240.0034.00

230.0033.00

2015(Baseline)

2016

2017

220.002018

261.692015(Baseline)

20162020 Target

240.05239.59201720182020 Target

Scope 1 and 2 Greenhouse Gases by Source
300

0.7

Page 42c Tonnes Carbon Equivalent

0.6

277
0.014

0.5

0.013

240

240

250

200

Corporate Social Responsibility Report

0.4
0.3

0.012
0.013

duction Normalization Unit

262

0.387
0.336

0.353

0.388

150

34.0033.00

230.002015(Baseline)

2016

2017

220.002018

2015(Baseline)

2016

2017

2020 Target

2018

2020 Target

Scope 1 and 2 Greenhouse Gases by Source
300

0.7

Million Metric Tonnes Carbon Equivalent

0.6

277
0.014

0.5

0.013

240

240

250

200

0.4
0.3

0.012
0.013

0.388

0.387
0.336

0.353

150

100
0.2
0.180

0.178

0.180

0.184

38.7

38.3

35.3

35.6

2015

2016

2017

2018

0.1
0.0

Combustion Fuel [Scope 1 MMTCE]

PFCs [Scope 1 MMTCE]

50

kg CE per Production Normalization Unit

262

0Electricity [Scope 2 MMTCE]

Scope 1 + 2 Assembly Test Emissions Normalized (kg CE/Unit, baseline year 2015)
Scope 1 + 2 Wafer Fabe Emissions Normalized (kg CE/Unit, baseline year 2015)

Our company also encourages employees to consider the impact ofeveryday activities on the environment. We recognize that commuting
can be costly and try to reward employees who take advantage of various
commuting options such as vanpooling, carpooling, bus or rail traveland bicycle use. Many of our global sites offer various employee trip
reduction plans and monthly subsidies depending on location and local
regulatory trip reduction requirements. At our Phoenix, Arizona office,we prevent 9 tons of pollution annually through our vanpool programand offer electric vehicle charging stations for those who have electricvehicles.

Electricity Consumption at Wafer FabOperations [kWh/Unit]
0.080
0.070

0.065

0.060

0.057

0.060

0.050
0.040
0.030
0.020
0.010
0.000

2015
(Baseline)

2016

2017

2018

2020 Target

Energy Consumption

Electricity Consumption at Assembly
and Test Operations [kWh/Unit][G4: 302-1, G4: 302-4]

Energy efficiency is central to the success of our products as well as
our operations. Along with our products reducing energy consumption,
we implement energy conservation and consolidation projects. Our
company’s total energy consumption was 1,344,643 (mWh), withelectrical and fuel consumption (from non-renewable resources) being
714,912 gigajoules. Since 2016, we have seen a reduction in normalizedenergy consumption by 16.8 percent at our wafer fabrication operations
and 9.7 percent at our assembly and test operations.

0.069

1.600
1.550

1.555

1.500
1.450

1.458

1.400

1.421
1.386

1.350
1.300

2015
(Baseline)

2016

2017

2018

2020 Target

ON Semiconductor

Page 43

Our manufacturing site located in Cebu, Philippines reduced energy
consumption through compressor and vacuum systems. This site aimed
to improve efficiencies in the system by eliminating pressure drops
and choke points, which resulted in energy use reduction in the main
motor. Regular, preventative maintenance of our heat exchanges havealso prioritized without waiting for manufacturing shutdown. Overall,this conservation effort has resulted in 35,000 kilowatt hours of savings
equivalent to approximately $77,000 USD.

Water Usage at Wafer Fab Operations[liter/Unit]
0.800

0.723

0.700

0.678

0.600

0.587

0.598

2017

2018

0.500
0.400
0.300
0.200
0.100

Water Management

0.000
2015
(Baseline)[G4: 303-1 – 3]

High purity water is a necessity for semiconductor manufacturing as it isused in delivering chemical, washing wafers and many other operations
within the fabrication process like scrubbing the exhaust of the systems
to reduce pollution. When completed, the water used in these processes
is discharged to waste treatment facilities as non-hazardous industrial
waste; most water is supplied to our facilities by third-party resources
who report to withdraw from groundwater or surface water.

20162020 Target

Water Usage at Assembly and Test Operations[liter/Unit]
13.00012.66212.50012.00011.50011.49011.21711.32711.000In an effort to identify and avoid negative water-related impacts, there are 10.500
many tools and methodologies currently in use throughout our facilities, 10.000
2015(Baseline)
these include laboratory analysis of both incoming and outgoing waterfrom a facility. This analysis allows for the continued production of highpurity water and ensures against potential negative impacts regarding water waste discharge.

2016

2017

2018

2020 Target

Another assessment used in identifying potential impacts is comparing our organization to common industry practices and standards.
Researching these practices and standards allows us to continue to modernize and develop our methodologies to increase efficiency
and decrease negative impacts on our water resources. There is also continuous work with process and facilities engineers to determine
process needs, understand waste produced and effectively utilize our resources focusing on conservation, reduction of chemical usage
and effective treatment of water waste. We regularly interface with local regulatory agencies to ensure that usage of water resource andwater waste discharge is lawful and does not damage the environment.
While we have no facilities in areas with water stress, we actively seek to avoid negative water-related impacts. The organization strives
for transparency with stakeholders, displaying deliberate stewardship of water as the important resource it is. Following this, we firmly
believe that reduction in water usage both enables the shared usage of water resources and reduces cost within process methods;
therefore, we continue to seek out water recycling, reuse and reduce options. There is an ongoing effort to reduce water usage per
normalized unit (photo-moves for front-end facilities, kWbonds for back-end units) by 5 percent by 2020 at all of our facilities. Since
2016, our normalized water consumption has decreased by 17.3 percent at our wafer fabrication operations and 10.5 percent at ourassembly and test operations. Over the last several years, we have drastically decreased the amount of water consumed within our
processes and in 2018 were able to recycle 5,458.9 megaliters of water of the consumed 12,450.6 megaliters. The water recycled is theequivalent of approximately 2,000 Olympic-sized swimming pools.
Page 44

Corporate Social Responsibility ReportWaste Management

Process Chemicals Usage at Wafer FabOperations [kg/Unit][G4: 306-2, G4: 306-4]

0.00135

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 example, our sites have
implemented projects that expand the lifetime of cleaning baths, modified
processes to reduce the volume of chemicals per wafer or installed minipumps for optimal application of chemicals. Similarly, sites have adopted
measures to reduce waste directed to landfill; our facility in Gresham,Oregon recycled over 4,000 kilograms of nitrile gloves in 2018.
In 2018, the total amount of hazardous and non-hazardous wastethat we recycle from our manufacturing and non-manufacturing sites
globally was 14,284,368 kilograms, while waste directed to landfill
was 5,875,919 kilograms. Our total hazardous waste transported was
6,345,210 kilograms; this includes both solid and liquid waste, but does
not include gaseous emissions, wastewater discharges or any wastes
associated with on-site wastewater treatment.

0.001300.001300.001250.001250.001200.001200.001150.001150.001100.001052015(Baseline)

2016

2017

2018

2020 Target

Process Chemicals at Assembly
and Test Operations [kg/Unit]
0.00460.00450.00450.00440.00440.00430.00430.00420.00420.00410.0040Reclaim and Recycle

0.0039[G4: 301-1]

2015(Baseline)

2016

2017

2018

2020 Target

Our global reclaim objectives reflect our commitment to environmental
sustainability and resource conversation while optimizing our network,
protecting our intellectual property and maximizing and re-capturing profits. Our main reclaim center is located at our company’s
headquarters in Phoenix, Arizona, while some of our manufacturing sites also reclaim and recycle their own materials. The manufacturing
scrap processed can be broken down into two categories: precious metal bearing material and non-precious metal bearing material.
Our take-back and recycle program provides our customers with an environmentally responsible solution for the return, recycling anddisposal of their products, including printed circuit evaluation boards. This program helps ensure compliance with the current andforthcoming regional regulations involving
Scrapped
producer responsibility for the recycling anddevices
proper disposal of electronic waste products.
In 2018, approximately 1,150,000 kilogramsof scrap materials and 822 kilogramsof precious metals from our company’s
worldwide manufacturing facilities wasprocessed, sorted and sold for reuse. The
reclamation of these materials recouped morethan $29 million USD.

ON Semiconductor

Printed circuitboardsPrecious Metal
Bearing Material

Platinum targets
and evaporator
metallic

Spent beadblast material

Gold targets,
wire andevaporator
metallic

Page 45

OUR COMMUNITY

Page 46

Corporate Social Responsibility ReportOur Community
Overview
At ON Semiconductor, we strive 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, environment, health, human services,and science, technology, arts and engineering and mathematics (STEAM) education. Through our community initiatives, we aim tocreate a relationship of mutual trust and respect between the company and the local communities in which we operate. The resultsof our community outreach programs have led to a more engaged workforce, greener communities, swift disaster relief efforts as wellas increased and more equitable access to education, health care services and basic human necessities. One example is our continued
partnership with the Starkey Hearing Foundation, which began in 2008. The Starkey Hearing Foundation has a mission to improve thelives of individuals, families and communities throughout the world with the provision of hearing aids. Partnerships like those with Starkey
Hearing Foundation are an integral component to our business strategy that ensure we are making a positive impact in the communities
in which we operate.

Global Corporate Giving Program
Launched in 2016, our Global Corporate Giving (GCG) Program strategically leverages our resources,talent and efforts to support nonprofits and educational institutions. Each year, we fund projects andprograms in order to create social value and maximize our impact on communities through workplacegiving and community grants. In 2018, we invested over $2 million USD to support our communities
worldwide.
Our GCG program is maintained by a network of committee members who represent each of our sites
and serve as ambassadors for the program. Through our diverse network of committee members, weare able to carefully select our community partners based on need and create meaningful impact while
also taking into account cultural, intuitional and operational differences across regions. In order toachieve long-lasting economic value and social good, we rely on other various stakeholder groups including executive leadership, thecompany’s board of directors, our employees, educational institutions and nonprofits. We engage these stakeholders at an on-going basis
to best understand how we can build stronger communities together.
For more information about our Global Corporate Giving Program, please visit our global corporate giving page.
Types of Donations

Donations by Cause
1% 2%
30%

40%
52%

60%

15%
STEAM Education
HealthHuman Services
Disaster Relief
Environment

ON Semiconductor

Employee Driven

GrantsPage 47

Employee Volunteerism
We understand the importance of having our company and employees not only do well but also do good. 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 2017. Through the EVP, employees may volunteer with organizations of their liking during company time for up to one
day, traditionally 8–12 hours, per year while receiving their typical pay for the time spent. Additionally, employees are encouraged toparticipate in volunteer events organized by our company. In 2018, many of our sites hosted days of service to offer both manufacturing
and non-manufacturing employees the ability to volunteer their time conveniently and in a meaningful way. To incentivize “goodness”
we also match our employees’ volunteer efforts through a dollars-for-doers program.

Page 48

Corporate Social Responsibility ReportCommunity Impact
Asia Region

University of Malaya
A University of Malaya physics professor and the university’s deputy vice-chancellor
for research and innovation received a grant from our Global Corporate Giving
Program. The grant was used to start a physics program and educate high school
students, teachers and undergraduate students on the research and developmentof science, technology, engineering and math (STEM). In total, 120 students andeight teachers participated in a program named Learn-X Physieta and heard froma guest scientist who gave a lecture and demonstration on how to conduct simple
physics experiments. Students and staff from the university also visited one of ourmanufacturing sites in Seremban, Malaysia to enhance their practical knowledge of
STEM as it applies to the semiconductor industry.

Leshan Puren Township Nursing Home
Keenan Evans, senior vice president of corporatesocial responsibility, traveled to Leshan and visited
the Leshan Puren Township Nursing Home. We
have assisted the Leshan Puren Township Nursing
Home since 2016 and in 2018 provided various
goods including water heaters and down jackets
for the winter.

Tree Planting
During Arbor Day in Bucheon, Korea, our employees andtheir families participated in a tree planting activity to aid theenvironment and support sustainability. Participants planted
approximately 200 azalea seedlings in an effort to decrease
our footprint on the environment and restore previous growth.

Philippines Red Cross
In the aftermath of 2018 Typhoon Ompong, or Typhoon Mangkhut, which struck the northern part of the Philippines and resulted in
flash floods, storm surges and landslides, we donated to the Philippines Red Cross. The funds donated helped in providing rehabilitative
services to those affected by the typhoon.
ON Semiconductor

Page 49

Europe Region

Goal
In Limerick, Ireland, our employees participated in Goal Jersey Day. Any one of ouremployees who donated to Goal, an international aid charity, could wear a jersey towork. With funds raised by the employees and contributions matched by the Global
Corporate Giving Program, Goal was able to assist in humanitarian and development
programs that involved emergency response, health and child protection.

Gymnazium Roznov
Gymnazium Roznov is a grammar school serving students ages 11 to 18. With an alreadylong-standing relationship with our Roznov site, our company was able to further contributeby providing funding to re-design the school’s physics laboratory with up-to-date equipment.
Making these updates was especially important for the school and students as physics is a key
subject for those continuing to study at technical universities.

Technical University of Munich
The Technical University of Munich’s eCARus provides more than 40 students the opportunity to experience the worldof engineering by exploring e-mobility in city conditions. Students build two electric cars and develop new concepts,
testing the components on a test bench while finally integrating their solutions in the cars. The students were supported
through our employee mentoring, company products and Global Corporate Giving Program funding.

Au Coeur des Grottes
In 2018, we supported Au Coeur des Grottes, a nonprofit organization based in Switzerland that cares for over
40 women in situations such as domestic violence and human trafficking. The funds helped support emergency
needs, children and mother activities, transitions from shelters to stable housing and other daily essential items.

Page 50

Corporate Social Responsibility ReportNorth America

Adelante Mujeres
Adelante Mujeres (Women Rise Up) has a mission to provide education and empowerment
opportunities to low-income Latina women and their families to ensure full participation
and active leadership in the community. Their Nourish the Community Initiative teaches
nutrition to low-income Latino communities and provides incentives for purchasing healthy
foods. Through a grant from our Global Corporate Giving Program, Adelante Mujeres has
impacted 20 schools with nutritional programming and nutrition incentives redeemed at
local Forest Grove Farmers Market.

Natural Restorations
In late November 2018, Natural Restorations received permission from the
Tonto National Forest – Mesa Ranger District and the Tonto National Forest
Archeologist to begin a graffiti and trash removal project. We issued a grant
to Natural Restorations to remove 374 square meters of graffiti and 1,642
kilograms of trash from outdoor recreation and wilderness areas.

Semi High Tech University
One of our affinity network groups, STEM UP, partnered with the SEMIFoundation and Gateway Community College to sponsor a unique three-day
career exposure program called Semi High Tech University (Semi HTU) at oursite in Phoenix, Arizona. Over the course of three days, a diverse group of
students from three high schools participated in hands-on science, technology,
engineering and math (STEM) activities related to real world career applications.
During the event, employee volunteers taught courses on topics such as quality
control, microchips, chemistry, etc., and discussed topics related to social media
use, resume preparation and interviewing.

Weinberg Food Bank
A grant issued to the Commission on Economic Opportunity directly supported the Weinberg
Food Bank, an organization that distributes food products to other charitable organizations
and feeding those in need throughout northeast Pennsylvania. These include food pantries,
homeless shelters, soup kitchens, group homes for the disabled, day care centers, children’scamps and senior citizen programs. Through the funding provided, over 25,000 kilograms offood was given to those in food-insecure homes.
ON Semiconductor

Page 51

Appendix
List of Acronyms
3TG:

tin, tantalum, tungsten and gold

LSS:

Lean Six Sigma

8D:“8 disciplines” of problem solving

NBRI:

National Business Research Institute

ACEEE:

American Council for an Energy-Efficient Economy

ODS:

Ozone-depleting substances

ADAS:

Adaptive Driver Assistance Systems

OHSAS:

Occupational Health and Safety Assessment Series

CCEO:

Chief Compliance and Ethics Officer

OECD:

Organisation for Economic Co-operation and Development

CCEP:

Corporate Compliance and Ethics Program

OEM:

Original Equipment Manufacturers

CEL:

Compliance and Ethics Liaison

PAC:

Political Action Committee

CFSI:

Conflict Free Sourcing Initiative

Ppb:

Parts Per Billion

CGN:

Corporate Governance and Nominating

RBA:

Responsible Business Alliance

CSR:

Corporate Social Responsibility

REACH:

Registration, Evaluation and Authorization of Chemicals

D&I:

Diversity and Inclusion

RMAP:

Responsible Minerals Assurance Process

DMAIC:

Define, Measure, Analyze, Improve and Control

RMI:

Responsible Minerals Initiative

DRC:

Democratic Republic of the Congo

RoHS:

Restriction of Hazardous Substances

EHS:

Environmental Health and Safety

SAQ:

Self-Assessment Questionnaire

EMEA:

Europe, Middle East, and Africa

SCCE:

Society of Corporate Compliance and Ethics

ERM:

Enterprise Risk Management

SEC:

Securities and Exchange Commission

ESG:

Environment, social, governance

SECs:

Solutions Engineering Centers

EuP:

European Energy Using Products

SIA:

Semiconductor Industry Association

EVP:

Employee Volunteer Program

SiPM:

Silicon Photomultipliers

GCG:

Global Corporate Giving

SoC:

Systems on Chip

GDPR:

General Data Protection Regulation

SPAD:

Single Photon Avalanche DiodeGEO:

Global Educational Opportunities

GRI:

Global Reporting Initiative

STEM UP: Science, Technology, Engineering and Math for
Underrepresented Populations

HCCA:

Health Care Compliance Association

IoT:

Internet of Things

ISO:International Organization for Standardization

KPI:

Key Performance Indicator

L&D:

Learning and Development

Page 52

UN:

United Nations

VAP:

Validated Audit Process

WME:

World’s Most Ethical®

WSC:

World Semiconductor Council

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

Externally developed economic, environmental andsocial 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•• Global Energy Research Initiative•• Global Semiconductor Alliance•• Greater Providence Chamber of Commerce•• Hearing Industries Association

Memberships with position on governance body:•• Arizona State University, Jeffrey Wincel, member of board oftrustees•• Association of Corporate Counsel, Arizona Chapter, Mark
Rogers, president•• CEB Compliance & Ethics Leadership Council, founding member•• The CSR Board, 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•• Malaysian Institute of Integrity and Corporate Integrity Pledge•• Microelectronic Industry Design Association (MIDAS) Ireland•• Motor Equipment Manufacturers Association/ OriginalEquipment Suppliers Association (MEMA/OESA)•• National Association of Corporate Directors•• Pocatello Chamber of Commerce•• Power Sources Manufactures Association (PSMA)•• Responsible Business Alliance (RBA) and their Environmental
Sustainability and Conflict Minerals groups•• Responsible Minerals Initiative (RMI)•• SEMI•• 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)•• United State Information Technology Office•• World Semiconductor Council (WSC)

ON Semiconductor

Page 53

Stakeholder Engagement[G4: 102-40, G4: 102-42 – 102-43, G4: 102-44]

We believe that the views of our stakeholders are important in making operational and strategic decisions. We identify stakeholders thateither have a significant impact on or are significantly impacted by our operations; the method and frequency of engagement varies bystakeholder type.

A

Open-Door
PolicyE

B

Internal
Communication

Training(newsletter,messages,
intranet)

Internal
Stakeholder
Engagement

D

Performance
Appraisals

C

Employee
SurveysA. We maintain an open-door policy, allowing employees to communicate and engage with management staff and humanresources.
B. Our employees globally are trained in our Code of Business Conduct and policies and programs including corporate social
responsibility, prevention of discrimination and harassment, anti-corruption and information security awareness.
C. We conduct anonymous employee engagement and pulse surveys 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.
D. We have an objective and fair performance management process which all employees are a part of on an annual basis.
E. We communicate with our employees through various mediums including town halls, All Hands meetings, our intranet,internal communication messages, social media, blog posts and monthly newsletters.

Page 54

Corporate Social Responsibility ReportA

J

Customer
Scorecards

B

Quarterly
Business
Review

Reporting

I

C

Investor
RelationsCustomer
Satisfaction
SurveyExternal
Stakeholder
Engagement

H

Community
Engagement

D

Ask anExpert ForumE

G

Public Policy
AdvocacyF

Supplier Due
Diligence

Industry
Associations,
Conferences,
Trade Shows

A. The use of customer scorecards is an ongoing process and provides results that allow us to analyze trends in overall
performance for each key attribute included in the scorecard.
B. We engage our customers on a quarterly basis to discuss results from customer scorecards and customer site visits to
our facilities.
C. Customer satisfaction surveys are disseminated on a regular basis in order to obtain insights and improve our performanceon issues important to our customers such as sales support, price of products, lead time and quality.
D. Customers may post questions on our company and products through our external website to gain expert opinions. The
questions are routed through the Technical Support Center, which takes ownership of finding accurate and providing
timely responses.
E. We participate in a variety of conferences with our customers, suppliers and peers including the Responsible Business
Alliance (RBA) conference on an annual basis. We participate in many different trade shows throughout the year toengage existing and new customers and distributors.
F. We engage our suppliers to communicate and assess risk against our code of business conduct, the RBA code of conduct
and RMI compliance. We also offer capacity building opportunities to our suppliers to strengthen their compliance tothese standards.
G. We actively engage with associations that make recommendations to governments and authorities on policy issues
related to the semiconductor industry.
H. We support and strengthen local communities through nonprofit organizations and educational institutions with financial
investments and employee volunteerism on an ongoing basis.
I. We host quarterly earning calls with our shareholders,J. We publish annual reports and file with the Security and Exchange Commission on a quarterly basis.

ON Semiconductor

Page 55Material Topics[G4: 102-47, G4: 103-1]

We recently engaged 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 fourteen issues are ultimately considered to be of high importance to our stakeholders and business
operations, certain issues are more significant than others. We address the fourteen high-priority issues rated by our stakeholders in thisreport and will continue to focus on these important topics through our business operations.

ON Semiconductor’s Materiality Matrix

Worker H&S
Business ethics

Importance to Our Stakeholders

Water management

Conflict minerals

Waste
management

Air emissions

Human rights

Energry efficient
products

Cost effectivenessInnovation
Career development
Community engagement

Economic performance

Diversity

Economic
Environmental
SocialImportance to Our Business

Page 56

Corporate Social Responsibility ReportAspect Boundaries[G4: 102-46, G4: 103-1]
Boundaries
Report Overview

Category

G4 Material Aspect

Internal

External

Acquisitions
Scope 1 and 2 emissions

Economic
Environmental

Business ethics
Learning and development
Community engagement
Conflict minerals and cobalt
Cost effectiveness
Diversity
Economic performance

No corresponding G4 material aspect
Emissions

x
x

x
x

All sites, customers and suppliers
Manufacturing sites and local environment

Economic
SocialSocialSocialSocialEconomic

No corresponding G4 material aspect
Training and education
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, customers, suppliers and communities
Employees
Employees and communities
Customers, suppliers and communities
Manufacturing operations and 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

ON Semiconductorxxx

Entities Impacted

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

Page 57

People, Planet, Profit Report
People

2018

2017

2016

Women in our global workforce

45%

47%

46%

Women in our global management

20%

20%

NL

Women promoted in our global workforce

25%

35%

30%

*Women on our board

20%

11%

10%

• White64.10%

64.10%

70%• Hispanic or Latino

4.60%

4.20%

4.50%

• Black or African American

1.60%

1.40%

1.50%

• Asian

17.20%

15.40%

16.50%• American Indian or Alaskan Native

0.30%

0.30%

0.30%

• Native Hawaiian or Other Pacific Islander

0.20%

0.40%

0.40%

• Two or More Races

1.90%

0.70%

0.60%

Ethnic diversity in our workforce (U.S. only)  

10%

13.70%

6.20%

1.03 /2.12

0.99/2.29

0.99/2.42

100%

99.60%

98%

Planet2018**20172016

Waste reused/recycled (kg-millions)

10.53

13.52

12.99

Waste directed to landfill (kg-millions)

3.29

4.86

4.71

• Undeclared
Safety - injury rate/lost work days (per 100 employees)
Sourcing from smelters that are RMAP conformant/human rights compliant

Hazardous waste transported (kg-millions)

6.34

6.35

5.46

Reclaimed scrap metals (metric tons)

1,150

1,147

1,072

Reclaimed precious metals (kg)

822

609

877

Water withdrawn (liters-billions)

6.99

12.17

11.82

Water recycled/reused (liters-billions)

5.46

5.33

5.45

Total energy consumption (kWh-billions)

1.54

1.46

1.45

Electrical consumption from non-renewable resources (kWh-billions)

1.34

1.28

1.25

715

648

720

Direct emissions (scope 1) (MTCO2)

1,412,218

1,416,622

1,291,202

Energy indirect emissions (scope 2) (MTCO2)

676,060

649,589642,657

Fuel consumption (from non-renewable resources) (GJ-thousands)

Profit

2018

2017

2016

Revenue ($ billions)

$5.90

$5.50

$3.90

Earnings per share

$1.48

$1.92

$0.44

Sustainability savings ($ millions)$7.30$10.10$7.80

Total new hires (job growth)

5,342

7,620

4,525

Reclaimed scrap materials/precious metals ($ millions)$29$26.60$28

NL = not listed; NA = not applicable* We had 9 board members in 2017 and 10 board members in 2016 and 2018** Calculations in the previous year’s report have been updated in this 2018 CSR Report. Older versions may not reflect what is currently
published or printed in this 2018 CSR Report. This is the most up-to-date version for our calculations.

Page 58

Corporate Social Responsibility ReportAdditional Data

Workforce Statistics[G4: 102-7 – G4: 102-8, G4: 401-1, G4: 405-1]
Gender
Total
Contractors andInterns

4,434

Regular Employees

31,822

Full Time Employees

35,918

Part Time Employees

338

Total New Hire

5,342

Total Turnover

4,573

Age Group

RegionM

F<30 Years

30-50 Years

50+ Years

Asia*

Japan

Americas

EMEA

2,304
52%
17,642
55%
19,597
55%
175
52%

2,130
48%
14,18045%
16,321
45%
163
48%

1,954
46%
9,906
31%
11,651
33%
209
62%

2,145
51%
16,96753%
19,048
53%
64
19%

112
3%
4,949
16%
4,997
14%
64
19%

3,606
81%
21,392
67%
24,939
69%
59
17%

423
10%
1,804
6%
2,227
6%
0
0%

186
4%
4,699
15%
4,846
13%
39
12%

219
5%
3,927
12%
3,906
11%
240
71%

2,854
53%
2,269
50%

2,488
47%
2,304
50%

3,092
58%
2,224
49%

1,850
35%
1,516
33%

400
7%
323
8%

3,621
68%
3,543
77%

578
11%
49
1%

578
11%
572
13%

565
10%
409
9%

* Excluding Japan

Health & Safety Statistics[G4: 403-2]
Type of Injury

Rate (%)

Abrasion

7.9

Avulsion

.3

Burn

2.4

Concussion

0

Contusion

13.1

Crushing.7

Cumulative stress disorder

8.3

Cut

8.3

Fracture – closed

2.4

Inflammation

2.4

Irritation

14.1

Laceration

10.7

Puncture

1.4

ON Semiconductor

Page 59

2018 GRI Content Index[G4: 102-55]
GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 102: General Disclosures 2018
102-1

Name of organization

Our Business: Overview – page 9

102-2

Activities, brands, products and services

Our Business: Overview – page 9

102-3

Location of headquarters

Our Business: Overview – page 9

102-4

Location of operations

Our Business: Worldwide Locations – page 13

102-5

Ownership and legal form

Our Business: Overview – page 9102-6Markets served

Our Business: Financial Strength – page 15

102-7

Scale of organization

Our People: Overview – page 30(a)    Total Number of Employees

Appendix: Additional Data – page 59(b)    Total Number of Operations

49(c)    Net revenue

Our Business: Financial Strength – page 15(d)    Total Capitalization in terms of debt and equity

Total liabilities: $4,393.5 million

Our Business: Customers – page 15

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

Total equity: $7,585.6 million
102-8(e)    Quantity of Products Provided

Our Business: Brand – page 14

Information on employees and other workers

Appendix: Additional Data – Workforce Statistics– page 59(a)    Total number of employees by employment
contract and gender(b)    Total number of employees by employment
contract and region

Appendix: Additional Data – Workforce Statistics– page 59(c)    Total number of permanent employees by
employment type and gender

Appendix: Additional Data – Workforce Statistics– page 59(d)    Whether a substantial portion of theorganization’s workforce is performed by workers
who are legally recognized as self-employed, orby individuals other than employees or supervised
workers, including employees and supervised
employees by contractors.

No(e)    Report any significant variations in employee
numbers

N/A

102-9

Description of supply chain

Our Business: Responsible Sourcing – page 18

102-10Significant changes to organization and supply chain

Our Business: Responsible Sourcing – page 18

102-11

Precautionary principle approach

Our Business: Enterprise Risk Management –page 17102-12External initiatives

Appendix: Memberships and External Initiatives– page 53

102-13

Membership of associations

Appendix: Memberships and External Initiatives– page 53

102-14

Statement from senior decision-makerA Letter for Our President and CEO – page 3

102-15

Key Impacts, risks, and opportunities

For details on impacts, risks and opportunities,
please see our 2018 SEC Form 10-K.

Page 60

Corporate Social Responsibility ReportGRI Standard
102-16Disclosure
Description of organization’s values, principles,standards, and norms of behavior

Cross reference or Answer

Additional Notes

Engineering a Better Tomorrow – page 6
Our Business: Mission, Vision and Culture – page9
Our Business: Core Values – page 9
Our Business: Our Culture – page 10
Our Governance and Ethics: Corporate
Compliance and Ethics Program – page 23

102-17

Mechanisms for advice and concerns about ethics

Our Governance and Ethics: Corporate
Compliance and Ethics Program – page 23

102-18Governance structure

Engineering a Better Tomorrow – page 6
Our Governance And Ethics: Overview – page
23
Please see our 2019 Proxy Statement for
additional details

102-19Delegating Authority

For delegating authority, please see
management approaches described throughout
this report.

102-20Executive-level responsibility for economic,
environmental, and social topics

Chief operating officer and chief financial officer

102-21

Consulting stakeholders on economic,
environmental, and social topics

For details see the Stakeholder Engagement
section of this report.

102-22Composition of the highest governance body and its
committees

Our Governance And Ethics: Overview – page23
2019 Proxy Statement102-23Chair of the highest governance body

Alan Campbell, chair of the board of directors

102-24

Nominating and selecting the highest governancebody

Please see the roles and responsibilities of our
Corporate Governance and Nominating (CGN)
Committee in our 2019 Proxy Statement.

102-25

Conflicts of interest

We have a written policy on related party
transactions to which all employees are required
to adhere. We disclose conflicts of interest withstakeholders including cross-board membership.

102-26

Role of the highest governance body’s and senior
executives’ roles in setting purpose, values, andstrategy

To understand the roles of our senior executives
and oversight of our board of directors withrelation to purpose, values and strategy please
see the Management Approach sections of thisreport.

102-27

Collective knowledge of highest governance body

The CGN Committee has the specificresponsibility to encourage and facilitate
Directors’ continued education. See our 2019
Proxy Statement for additional details.

102-28

Evaluating the highest governance body’s
performanceSee page 26 of our 2019 Proxy Statement
for information on board of directors SelfEvaluation. During 2018, the board implemented
an annual peer-to-peer evaluation to obtain
information about each director’s performance,
contributions, and effectiveness during theprevious year.

102-29Identifying and managing economic, environmental,
and social impacts

For details on the role of our board of directors
in having oversight of our environmental, social,and economic impacts please see management
approach sections of this report and our 2019
Proxy Statement.

ON Semiconductor

Page 61GRI Standard

Disclosure

Cross reference or Answer

102-30Effectiveness of risk management processes

Our Business: Enterprise Risk Management –page 17102-31

Review of economic, environmental, and social
topicsEach group within our company reports up to
the board of directors and cover economic,
environmental and social topics relevant to theirrespective functions.

102-32Highest governance body’s role in sustainability
reporting

While our board of directors do not have
responsibility over our sustainability reporting,the various groups contributing to andrepresented in our 2018 Corporate Social
Responsibility Report report to the company’sboard of directors.

102-33

Communicating critical concerns

Critical concerns are communicated during
regular (quarterly) and special (interim) meetings
with the board of directors. We allow special
meetings for our stockholders as outlined in our2019 Proxy Statement.

102-34Nature and total number of critical concerns

See page 31 of our 2019 Proxy Statement.

102-35

Remuneration policies

For details on our compensation objectives andpolicies please see page 38 of our 2019 Proxy
Statement.

102-36

Process for determining remuneration

Internal compensation staff and hiring manager
determine appropriate base pay using themarket median (or P50), our established salaryranges, and internal comparisons.

102-37

Stakeholders’ involvement in remuneration

N/A

102-38Annual total compensation ratio

Belgium: 6:1

Additional Notes

China: 37:1
Hong Kong: 5:1
India: 5:1
Japan: 8:1
Korea: 10:1
Malaysia: 46:1
Philippines: 72:1
Singapore: 7:1
Taiwan: 4:1
Thailand: 3:1
Czech Republic: 10:1
US 12:1
Vietnam: 38:1

Page 62

Corporate Social Responsibility ReportGRI Standard
102-39Disclosure
Percentage increase in annual total compensation
ratio

Cross reference or Answer
Belgium: 2.9:1
China: 0.4:1
Czech Republic: 0:1
Hong Kong: 1.2:1
India: 1.8:1

Additional Notes
The population changed significantly in somecountries and the movement of employees inand out of the organization at all levels canhave a major impact on the median salary. This
is why you see some negative numbers above.
These are in fact a result of the movement of
employees.

Japan: -0.3:1
Korea: 6:1
Malaysia: 0:1
Philippines: 0:1
Singapore: 0.9:1
Taiwan: 0.2:1
Thailand: 1.3:1
US: -1.5:1
Vietnam: 1.4:1
102-40

List of key stakeholder groups

Appendix: Stakeholder Engagement – page 54

102-41

Total number of employees covered by collective
bargaining agreements

Belgium: 795
China: 2,424
Czech Republic: 2,146
France: 92
Japan: 1,398
US: 116
Vietnam: 2,767

102-42 – 102-43

Identifying and selecting stakeholders; Approach to
stakeholder engagement

Appendix: Stakeholder Engagement – page 54

102-44

Key topics and concerns raised

Appendix: Stakeholder Engagement – page 54

102-45

Entities included in the consolidated financial
statements

See Reporting Segments and Manufacturing
Sites and Principles of Consolidation in our 2018
SEC Form 10-K.

102-46

Defining report content and topic boundaries

Report Overview – page 9102-47

List of material topics

Appendix: Material Topics – page 56

102-48

Restatements of information

Appendix: People, Planet, Profit Report – page
58

102-49Changes in reportingNone

102-50

Reporting period

2018 calendar year

102-51

Date of most recent reportJun-18102-52

Reporting cycle

Annual102-53

Contact point for questions

Appendix: Contact Us – page 71

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

Report Overview – page 9102-55GRI Content Index

Appendix: 2018 GRI Content Index – page 60

102-56External assurance

Report Overview – page 9

Appendix: Aspect Boundaries – page 57

ON Semiconductor

Page 63

GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 103: Management Approach 2018
103-1

Explanation of material topics and boundaries

Appendix: Material Topics – page 56

103-2

Management approach for material topics

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

103-3

Evaluation of management approach

Our evaluation of management approach tomaterial topics can be found in each section ofthis report.

Appendix: Aspect Boundaries – page 57

GRI 201: Economic Performance 2018
201-1

Direct economic value generated and distributed(EVG&D)

Our Business: Financial Strength – page 15(a)    Direct economic value generated

Proceeds from sale of property, plant, andequipment $36.5 million(b)    Economic value distributed

Cost of revenue: $$3,639.6 million
Operating cost: $1,391.5 million
Cash paid for interest: $80 million
Cash paid for taxes: $53.2 million(c)    Economic value retained

Net Income: $630.1 million(d)    EVG&D by country, regional, or market levels

See Revenue & Segment Information and Resultsof Operations in our 2018 SEC Form 10-K

201-2

Financial implications and other risks andopportunities due to climate change

Our Planet: Climate Change – page 42

201-3

Defined benefit obligation plans and otherretirement plans

Our People: Employee Benefits – page 37

Financial assistance received from government

Net operating loss and tax credit carryforwards:$584.9 million

201-4

For additional details, see our Regional
Benefits Summaries and 2018 SEC Form
10-K.

GRI 202: Market Presence 2018
202-1

Page 64(a)    Ratio of standard entry level wage by gendercompared to local minimum wage

All of our employees are compensated at or
above minimum wage. Minimum wage in all
listed regions is gender neutral.

(b)    When a significant proportion of other workers(excluding employees) performing the organization’s
activities are compensated 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.). We conduct risk assessments and/or on-site verification of suppliers and on-site
service providers to ensure that RBA standards
and legal requirements are being met, including
those related to minimum wage.

(c)    Definition used for “significant locations ofoperation”

Manufacturing locations

Corporate Social Responsibility ReportGRI Standard
202-2

Disclosure(a)    Proportion of senior management hired fromthe local community

Cross reference or Answer

Additional Notes

Belgium: 100 percent
Canada: 100 percent
China: 57 percent
Czech Republic: 100 percent
Japan: 100 percent
Korea: 100 percent
Malaysia: 90 percent
Philippines: 67 percent
United States: 66 percent
Vietnam: 0 percent(b)    Definition used for “significant locations ofoperation”.

Manufacturing locations

GRI 203: Indirect economic Impact 2018
203-1 -2

Infrastructure investments and services supported;
significant indirect economic impacts

N/A

GRI 204: Procurement Practices 2018
204-1

Proportion of spending on local suppliers

Our Business: Responsible Sourcing – page 18

GRI 205: Anti-corruption 2018
205-1

Operations assessed for risks related to corruption

Outside of our responsibilities as a RBA member,
we assess other risks related to our own
operations. All manufacturing locations were
initially considered when risk was assessed andcontinue to be assessed at an ongoing basis.
Since we sell our products around the world, therisk assessment is based on location and typesof customers.
While there are no significant risks that wereidentified, some areas presented a greater risk
than other areas. In assessing the risks related tocorruption, a major factor is the ranking of thecountry 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 thelower half of the 2018 country rankings – thePhilippines (ranked 99) and Vietnam (ranked
117). Additionally, we have a greater risk withcustomers in China (ranked 87) because anumber of electronics manufacturers are state
owned enterprises and their employees are
considered government officials under the U.S.
Foreign Corrupt Practices Act.
For details on other due diligence measuresrelated to anti-corruption, see Engineering a
Better Tomorrow section of this report.

205-2

Communication and training about anti-corruption
policies and procedures

Our People: Learning and Development – page
35

Annual Code of Business Conduct training
includes the topic of anti-corruption in 2018.

All (100 percent) board members, all of whom
are in the United States, Europe or Asia Pacificreceived communication and training on ouranti-corruption policy.
205-3

ON Semiconductor

Confirmed incidents of corruption and actions taken

We do not have knowledge of any confirmed
incidents of corruption.

Page 65GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 206: Anti-Competitive Behavior 2018
206-1

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

Zero

GRI 301: Material 2018
301-1

Materials used by weight or volume; percentageof recycle input materials used for manufacturing;
reclaimed products and their packaging material

Our Planet: Reclaim and Recycle – page 45

We spend over $1 billion on various partsand raw materials as we manufacture at bothinternal and external sites. We do not trackor estimate the raw material used in key
manufacturing locations.

GRI 302: Energy 2018
302-1

Energy consumption within the organization

Our Planet: Energy Consumption – page 43

Total fuel consumption from non-renewablesources are tracked for manufacturing facilities
and includes natural gas and diesel.

302-2

Energy consumption outside the organization

N/A

Not evaluated

302-3

Energy intensity ratio for organization

Wafer fab energy (electricity) normalization =0.060 kWh per unit

Denominator used: wafer fab normalization
united based on photo move volume; assembly& test normalization unit based on wire bondvolume.

Assembly and test energy (electricity)normalization = 1.414 kWh per KWBonds.
302-4

Reduction in energy consumption

Our Planet: Energy Consumption – page 43

302-5

Reductions in energy requirements of product andservices

N/A

GRI 303: Water 2018
303-1 – 3

Water stress and how the organization works withstakeholders.

Our Planet: Water Management – page 44

GRI 304: Biodiversity 2018
304-1

Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of highbiodiversity value outside protected areas; significant
impacts of activities, products and services on
biodiversity; Habitats protected or restored

None

GRI 305: Emissions 2018
305-1

Direct (scope 1), energy indirect (scope 2), and otherindirect (scope 3) GHG emissions

Scope 1: 1,421,218 MTCO2
Scope 2: 676,060 MTCO2
Scope 3: N/A

305-4

GHG emissions intensity

Wafer fab GHG emissions (electricity, fuel, PFCs)
normalization = 35.584 grams carbon equivalent
per unit
Assembly and test energy (electricity, fuel,PFCs) normalization = 239.591 grams carbon
equivalent per kWBonds

305-5

Reduction of GHG emissions

Our Planet: Scope 1 and 2 Emissions – page
42

305-6

Emissions of ozone-depleting substances (ODS)

Zero

305-7

Nitrogen oxides, sulfur oxides, and other significant
air emissions

Air emissions do not exceed local regulation air
emission permit limits. Emission concentrations
are tracked at local facilities, data is not
calculated globally.

Page 66

We do not regularly measure the environmental
impact of scope 3 emissions. A study was
conducted several years ago to measure thechange in our carbon footprint as it related tochanges we made in our logistics network. It
was found that as we optimized our network to
cut transportation cost there was a correlation
to improving our carbon footprint.
Intensity ratio calculated separately for wafer
fabs and for assembly & test operations. Wafer
fab normalization unit based on photo movevolume. Assembly and test normalization unit
based on wire bond volume.

Corporate Social Responsibility ReportGRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 306: Effluents and Waste 2018306-1

Water discharge by quality and destination

All water is discharged to sanitary systems.
Effluent discharge meets or exceeds local
regulations.

306-2

Waste by type and disposal method

Our Planet: Waste Management – page 45

306-3

Significant spills

None

306-4

Transport of hazardous waste

Our Planet: Waste Management – page 45

306-5

Water bodies affected by water discharges and/or
runoffNone

GRI 307: Environmental Compliance 2018
307-1

Non-compliance with environmental laws andregulations

None known

GRI 308: Supplier Environmental Assessment 2018308-1

New suppliers that were screened using
environmental criteria

None

308-2

Negative environmental impacts in the supply chain
and actions taken

Our Business: Responsible Sourcing – page 18

GRI 401: Employment 2018
401-1

New employee hires by age group, gender andregionOur People: Recruitment and Retention – page
34

Employee turnover by age group, gender and region

Appendix: Additional Data – Workforce Statistics– page 59

401-2

Benefits provided to full-time employees that are notprovided to temporary employees

N/A

We do not publicly disclose this information.

401-3

Parental leave

N/A

We do not publicly disclose this information.

GRI 402: Labor/Management Relations 2018402-1(a)    Minimum notice periods regarding operationalchanges(b)    Whether the notice period and provisions
for consultation and negotiation are specified incollective agreements

We provide advance notice or make changes
to the contract mid-term by mutual consent
in accordance with collective bargaining
agreements entered and local requirements inthe different countries where we operate.
Belgium: as per legal provisions
Czech: as per legal provisions
China: yes (manufacturing only)
Japan: yes
Korea: no
USA: yes
Vietnam: no
Taiwan: no
France: as per legal provisions

GRI 403: Occupational Health and Safety 2018403-1

Occupational health and safety management systemand scope of system

Our People: Health and Safety – page 38

403-2

Hazard identification, risk assessment and incident
investigation; process for workers to report workrelated hazards and remove themselves from work
situations leading to injury or ill health

Our People: Health and Safety – page 38

Processes used to investigate work-related incidents,
identify hazards, assess risks and determine
corrective actions

We use the 8D protocol and Why-Why analysis
to resolve incidents.

ON Semiconductor

Page 67GRI Standard

Disclosure

Cross reference or Answer

403-3

Occupational health services

Our People: Health and Wellness – page 39

403-4

Worker participation and consultation andcommunication on occupational health and safety

Our People: Health and Safety – page 38
Appendix: Additional Data – Health & Safety
Statistics – page 59

403-5

Worker training on occupational health and safety

Our People: Health and Safety – page 38

403-6

Promotion of worker health

Our People: Health and Wellness – page 39

403-7

Prevention and mitigation of occupational healthand safety impacts directly linked to business
relationshipWe follow strict standards to provide safe
workplaces for employees around the world.
Engineering controls like adequate exhaust/
ventilation, fire protection systems, interlocks,
machine guarding, etc. are preferred basedon present hazards. In addition to that PPE isprovided based on a risk analyses.

403-8

Workers covered by an occupational health andsafety management system

N/A

403-9

Work-related injuries

0

Number of hours worked

60,632,000

Work-related ill health0403-10Additional Notes
Manufacturing employees are represented bysafety committees and all are aware of who
their safety representative is. Safety committees
meet on weekly basis or as needed.

GRI 404: Training and Education 2018
404-1

404-2

404-3

Average hours of training per year per employee(a)    By gender12(b)    By employee category

12

Training programs for:(a)    upgrading employee skills

Our People: Learning and Development – page35(b)    transition assistance programs

For transition assistance, we offer careercoaching, resume development, job searchtraining, skill building, networking training,cover letters writing and interviewing practice.
For employees who are retiring, we offer
retirement and financial planning, counselling
and legal services.

Percentage of employees receiving regularperformance and career development reviews

Our People: Performance Management and
Employee Recognition – page 37

GRI 405: Diversity and Equal Opportunity 2018
405-1

Diversity of governance body and employees

Our Governance and Ethics: Overview – page23
Our People: Overview – page 30
Appendix: Additional Data – Workforce Statistics– page 59405-2

Ratio of basic salary and remuneration of women
to menN/A

We do not publicly disclose this information.

None known

Attorney client privileged information

GRI 406: Non-Discrimination 2018
406-1

Page 68

Incidents of discrimination and corrective actions
taken

Corporate Social Responsibility ReportGRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 407 – 409: Freedom of Association and Collective Bargaining, Child Labor and Forced or Compulsory Labor 2018407-1 – 409-1

Operations and suppliers in which the right of
freedom of association and collective bargaining
may be at risk; operations and suppliers at
significant risk of incidents of child labor; operations
and suppliers at significant risk of incidents of forcedlabor.

We work with suppliers in countries where therisk of violating labor and human standards isrecognized as being higher. To actively address
this, we require suppliers to complete selfassessment questionnaires, provide training andalso conduct on-site verification. In the eventthat any risk of violating the right to freedomof association, existence of child labor or forcedlabor is identified, we work closely and diligently
with our suppliers through corrective actionplans. If the nonconformance is not adequately
addressed by the supplier in a timely fashion, we
may choose to terminate our contract with the
supplier.
For more information please see our humanrights policy.

GRI 410: Security Practices 2018
410-1

Security personnel trained in human rights policies
or procedures

We use both in-house and third party
organizations for security personnel.
Approximately 90 percent of security personnel
are trained in our human rights policies.

GRI 411: Rights of Indigenous Peoples 2018
411-1

Incidents of violations involving rights of indigenous
peoples

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

GRI 412: Human Rights Assessments 2018
412-1

Operations subject to human rights reviews or
impact assessments

Engineering a Better Tomorrow – page 6

412-2

Employee training on human rights policies andprocedures

Our People: Learning and Development – page
35

412-3

Significant investment agreements and contracts
that include human rights clauses or that underwent
human rights screening

Please see our human rights policy.

GRI 413: Local Communities 2018
413-1

Operations with local community engagement,
impact assessments, and development programs

All of our sites globally are involved with
community engagement and development
programs through our workplace giving programand employee volunteerism. To learn more about
our community engagement efforts, please see
the Our Community section of this report.

413-2

Operations with significant actual and potential
negative impacts on local communities

None

GRI 414: Supplier Social Assessment 2018
414-1

New suppliers that were screened using social
criteria

None

414-2

Negative social impacts in the supply chain andactions taken

Our Business: Responsible Sourcing – page 18

GRI 415: Public Policy 2018
415-1

ON Semiconductor

Political contributions

None

Page 69GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 416: Customer Health and Safety 2018
416-1

Assessment of health and safety impacts of productand service categories

Over 95 percent of our products are available in
lead-free (Pb-free) packaging. We also support
the aim of REACH in improving the protectionof human health and the environment throughbetter and earlier identification of the intrinsic
property of chemical substances. We meet
REACH requirements and are committed toproviding customers with information about
substances in their products according to REACH
requirements.

416-2

Incidents of non-compliance concerning the healthand safety impacts of products and services

N/A

GRI 417: Marketing and Labeling 2018
417-1

Requirements for product and service informationand labelingSee our Packaging and Labeling Guidelines

417-2

Incidents of non-compliance concerning product andservice information and labelingTo the best of our knowledge we have notreceived fines for non-compliance concerning
product and service information and labeling.

417-3

Incidents of non-compliance concerning marketing
communications

We are not aware of any non-complianceconcerning marketing communication.

GRI 418: Customer Privacy 2018
418-1

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

None

GRI 419: Socioeconomic Compliance 2018
419-1

Page 70

Non-compliance with laws and regulations in thesocial and economic area

To the best of our knowledge we have notreceived significant fines or non-monetary
sanctions for non-compliance with laws or
regulations in the social or economic areas.

Corporate Social Responsibility Report

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 71

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