TABLE OF CONTENTS
Letter from Our President and CEO

1

Professional Training and Development

24

Report Overview

3

Commitment to Diversity

26

CSR Statement of Commitment

3

Employee Engagement

28

Our Business

5

Recognizing our Employees

29

Overview

5

Prevention of Slavery and Human Trafficking

29

Mission, Vision and Culture

5

Prevention of Child Labor

29

Core Values

5

Health and Safety

30

Mergers and Acquisitions

7

Health and Wellness Programs

31

ON Semiconductor Through the Years

7

Recognition

32

Worldwide Locations

8

Our Planet

34

Our Brand8

Overview

34

Demonstrated Financial Strength

9Management Approach

34

Enterprise Risk Management

10

Climate Change

35

Quality and Reliability

11

Conservation

35

Our Commitment

11

Sustainability Objectives: 2016 – 202037

Responsible Sourcing

12

Recognition

37

Recognition

14

Our Community

40

Over Governance and Ethics

Page b

16

Overview

40

Overview

16

Global Corporate Giving Program

40

Management Approach17

Employee Volunteerism

41

Ethics Awareness18

Community Impact: 201641

Public Policy Activities

19

Political Contributions

20

ON Semiconductor Memberships

47

Ethics Hotline

20

Stakeholder Engagement

48

Recognition21

Aspect Boundaries

50

Our People

23

Additional Data

50

Overview

23

Contact Us

51

Management Approach23

2016 GRI Content Index

52

Recruitment and Retention

24

Appendix

47

Corporate Social Responsibility Report

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

ON Semiconductor delivered a record-setting year in 2016. In September of 2016, we acquired Fairchild Semiconductor
for $2.4 billion. With a diverse product portfolio of market-leading products, our company has become increasingly
important for our customers and partners. With this growth, our stakeholders are progressively more interested in
how our company continues to remain committed to corporate social responsibly. Environmental conservation andengagement programs, the inclusion of our supply chain, and recognition throughout the communities in which we
do business all tie into our everlasting responsibility to being a good corporate citizen. Our customers, partners andsuppliers all provide invaluable support and information to make our business more sustainable, our products more
efficient and enable our company to sustain superior quality standards.
By conducting our operations in an environmentally, socially and ethically responsible manner, we are committed to providing customers withenvironmentally sound and high quality products. A large part of corporate social responsibility at ON Semiconductor is based on our full membershipin the Electronics Industry Citizenship Coalition (EICC). We continue to abide by the EICC’s Code of Conduct, and we rely on a team of highly effective
corporate social responsibility site champions to ensure that each of our manufacturing sites is in compliance with the EICC Code, international
standards and other guidelines. Additionally, all ON Semiconductor suppliers are required to agree and comply with ON Semiconductor’s Code ofBusiness Conduct and the EICC Code of Conduct. Moving forward, we are planning to develop a Supplier Code of Conduct and corresponding online
training that clearly outlines our expectations and assists suppliers in understanding these expectations.
Beyond engaging our supply chain, all ON Semiconductor employees receive yearly corporate social responsibility training, with the latest training
occurring in October of 2016. The training covers issues central to the EICC, such as labor standards, health and safety, environmental sustainability
and conflict minerals. We also provide additional corporate social responsibility-related training to our corporate social responsibility site champions,internal auditors and subject matter experts who promote compliance with EICC standards and best practices at our manufacturing sites every day.
The conservation efforts throughout our company reach many areas. All of our factories are continuously engaged in multiple sustainability projects
aimed at conserving water, electricity and fuel. Conservation highlights from 2016 include:• The amount of total waste reused and recycled in 2016 was 12,995,246 kilograms while landfill was 11,755,619 kilograms.
• Approximately 1,072 metric tons of scrap materials and 1,933 pounds of precious metals from the company’s worldwide manufacturing facilities
were processed, sorted and sold for reuse.
• Water consumption was reduced by 2.2 percent in 2016 compared to the annual consumption in 2015. The company recycled or reused
5,446,796,235 liters (49 percent of total quantity withdrawn).
• Total energy consumption was reduced by 3.35 percent compared to the annual consumption in 2015. There was a 9.62 percent reduction inenergy consumption at ON Semiconductor wafer fabs and 7.29 percent reduction at assembly and test sites from the previous year.
We remain diligent in our conservation efforts. Our sustainability objectives for 2016-2020 include reducing chemical, energy, water and carbon
consumption each by five percent.
In the community, our efforts have been recognized by multiple conservation awards throughout 2016. Key awards include:• Huawei Green Partner Award: ON Semiconductor received Huawei’s Green Partner Certification for the period of 2014 through 2016. Thiscertification reflects our capability to meet Huawei’s stringent requirements in such areas as non-use of restricted substances, energy efficiency,
and emission and waste treatment.
• Industrial Waste Water Award: For the fourteenth year in row, the city of Gresham, Oregon’s Waste Water Department recognized our manufacturingsite in Gresham for not having any industrial waste water violations.

ON Semiconductor

Page 1

• Environmental Sustainability Award: Our site in Niigata, Japan received the Niigata Prefecture Environmental Sustainability Award from the local
government.
• Energy Efficient Upgrades: Our Pocatello, Idaho facility completed upgrades that were estimated to save over 2,671,000 kilowatt-hours per year,
the equivalent electricity needed to power 212 average residential homes. Idaho Power recognized our site with an incentive award for LED interior
lighting upgrades.
Beyond our conservation awards, ON Semiconductor received various awards in 2016 that speak to our commitment to our employees and communities.
Some of these recognitions include being named as Outstanding Employer of the Year Award for the third consecutive year from the Philippines
Economic Zone Authority, National Model of Employer Award from the China Federation of Trade Unions and for two consecutive years to the Forbes
2016 America’s Best Employers list and named as a World’s Most Ethical Company by Ethisphere.
Our focus stems from our highly ethical culture, safety first, quality always mentality and our Core Values: Respect, Integrity and Initiative. The corporatesocial responsibility initiatives, conservation efforts, volunteer work and awards mentioned throughout this report wouldn’t be possible without theperseverance of our employees. Our employees’ hard work and commitment to our Core Values are part of what makes our business thrive. We willremain dedicated to maintaining a distinctive, world class quality system, which surpasses all international quality standards and aims to exceed
customer expectations.

Keith Jackson
President and CEO

Page 2

Corporate Social Responsibility ReportReport Overview[G4:102-1 – 102-3] [G4: 102-5] [G4: 102-46] [G4: 102-54] [G4: 102-56]

Our 2016 Corporate Social Responsibility (CSR) Report is prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option.
The 2016 report expands on and provides updates to several topics covered in our 2015 report, which was published in June 2016. Some of the topics
included are the company’s business profile, governance and ethics, employee relations, environmental impacts and our involvement in the community.
With the acquisition of Fairchild Semiconductor in 2016, the scope of the report includes detailed information from our newly acquired sites and our
expanded employee base. Although we have not sought external assurance for the content of our 2016 CSR Report, certain data included is subject toexternal review and all information provided is reviewed internally.
More information about our operations and financial statements is available in our 2016 Sec Form 10-K.

Corporate Social Responsibility Statement of Commitment
As a global supplier to customers worldwide, we operate across a diverse range of cultures and international markets. Our business is committed toproviding our customers with inventive, high quality products that are environmentally sound. We conduct our operations in an environmentally, sociallyand ethically responsible manner and comply with applicable laws and regulations, including those related to anti-corruption, of countries where we
do business. The commitment is deeply ingrained in our Core Values, policies and our Code of Business Conduct.
We are a member of many organizations and initiatives that focus on technological advances in sustainable energy, power conservation and corporate
responsibility. One of these is the Electronics Industry Citizenship Coalition (EICC). As a full member of the EICC, we embrace the EICC Code of
Conduct and have incorporated these tenets into our facility and supplier programs. We take multiple actions to verify the absence of forced labor,
slavery and human trafficking within our supply chain. Additionally, we work collaboratively with our suppliers to encourage their compliance with the
Conflict-Free Sourcing Initiative’s (CFSI) conflict-free minerals policy and other supply chain initiatives.
We are proud of our commitment to operate in a transparent, socially responsible manner towards our employees, suppliers, customers and thecommunities in which we do business worldwide.

Corporate Social Responsibility Strategy
Corporate social responsibility at our company is deeply rooted in our Core Values of Respect, Integrity and Initiative. We provide our customers aroundthe globe with a broad portfolio of innovative, energy efficient and environmentally friendly semiconductor solutions addressing virtually all market
segments. Our business and manufacturing operations are comprised of a diverse spectrum of geographies, cultures and technologies.

ON Semiconductor

Page 3

INGENUITY

Page 4

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

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

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

Core Values[G4: 102-16]

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

Page 5

Respect

Integrity

Initiative

Core Values and Corporate Social Responsibility Map

ON Semiconductor Core Values,
Principles, and Programs

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

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

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

Interrelated areas

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

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

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

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

Page 6

Public Policy
Advocacy
Organization memberships
Trade policy

Financial strength
Tax management strategy
Cash management
Financial reporting

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

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

Stakeholders
Employees
Suppliers
Customers
Government
NGOs
Investors
Communities
Non-Profits

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

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

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

Corporate Social Responsibility ReportMergers and Acquisitions
In our highly competitive industry, we remain agile and strategic in order to meet business and market needs. Our focus stems from our highly ethicalculture, safety first, quality always mentality and our Core Values of Respect, Integrity and Initiative.
Since our spin off from Motorola in 1999, we have proudly incorporated best practices and leaders from all of our acquisitions.
On Sept. 19, 2016, we announced the close of the Fairchild Semiconductor acquisition and we officially welcomed the Fairchild team to the
ON Semiconductor family. The acquisition of Fairchild Semiconductor further advances our global leadership in the power semiconductor market. Ourpresence in key markets – automotive, industrial and wireless – and with a high voltage product portfolio is now strengthened. We will continue topioneer technology and design innovation in efficient energy consumption to help our customers achieve success and drive value for our partners andemployees around the world.

ON Semiconductor Through the Years

ON Semiconductor

Page 7

Worldwide Locations[G4: 102-4]

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

Our Brand
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 closely with associations, industry standards organizations, and government
entities such as ENERGY STAR®, the China National Institute of Standardization, and the European Energy Using Products (EuP) Directive, we continue
to demonstrate our commitment to the development of innovative energy efficient solutions to support a variety of end markets. To help reduce new
product development costs, speed time-to-market for customers and support the design of energy efficient electronics, we provide online Power Supply
WebDesigner™ tools and GreenPoint® reference designs, for a range of applications that meet or exceed global energy efficiency standards. We offer
innovative products that enable more efficient power supplies through improved power factor, enhanced active-mode efficiency, and reduced standbymode power consumption.

Page 8

Corporate Social Responsibility ReportHelping Customers Solve their Unique Design Challenges
We work closely and collaboratively with our customers to solve their unique design challenges using innovative technologies, robust designs, andenergy efficient products and solutions. We operate a global network of Solutions Engineering Centers (SECs), on-site customer design facilities, andapplications-focused design and test labs, all supported by global teams of field applications engineers working to meet the needs of an expanding
customer base.
Operating a World-Class Supply Chain and Quality Program
We operate a flexible, reliable, responsive supply chain that supports complex manufacturing networks and dynamic global market conditions. This
includes multiple manufacturing and logistics sites located near our customers to ensure supply continuity. During 2016, we shipped more than 59.4
billion units through our global logistics network and delivered products with greater than 94 percent average on time delivery to requested dates
for all key customers. Our company sustains world-class quality performance, with average defect rates of less than 170 parts per billion (ppb). Our
company’s approximately 32,000 employees around the world are collaborating with customers, distribution partners and vendors to develop not only
more efficient silicon solutions, but more efficient ways of doing business.

Demonstrated Financial Strength[G4: 102-6 – 102-7]

Our company demonstrates financial strength and efficiency through strong cash flow, a stable revenue stream, and balanced geographic and endmarket exposure. Our company’s financial performance and effective use of resources should continue to provide opportunities for growth moving
forward.
Automotive Sector(34% of Revenue)

Computing Sector(12% of Revenue)

Consumer Sector(12% of Revenue)

Communications Sector(20% of Revenue)

Industrial Sector(22% of Revenue)• Active Safety• Wireless Charging• Connectivity• Wireless Charging• Lighting• Fuel Economy &Emissions Reduction• USB Type-C Solutions• Power Conversion• USB Type-C Solutions• Connectivity• Power Conversion• Audio/Video/Imaging• RF Tuning• Imaging/Sensing• AC Power Adapter• Motor Control• Wall-to-Battery Power• Power Conversion• Server Power• Wireless Charging• Netcom Power• Motor Control• Body Electronics• Connectivity & PowerManagement• Lighting

Product Capabilities

RevenueAnalog,
by Region
RevenueGroup
Custom,
SoC,byConnectivity,
Sensors, Mixed-Signal,
Logic, Discrete
Micro-Packages, Power Packages, Power Modules, 6%
Chip-Scale, Multi-Die, Hybrid
14%
18%
38%
Software, Development Kits, Reference Designs

28%

44%

Analog Solutions GroupPower Solutions Group
Image Sensor Group

15%

9%

28%

United Kingdom
United States
Hong Kong
Japan
Singapore
Other

Data presented as of December 31, 2016

ON Semiconductor

Page 9

Enterprise Risk Management[G4: 102-11]

Leading companies outperform their peers because they do a better job of taking and managing risks– not because they do a better job avoiding them. The goal of our Enterprise Risk Management (ERM)
program is to systematically, consistently, and effectively identify, evaluate, prioritize and manage
key risks affecting the company. Our ERM program strives to develop a risk-aware culture across thecompany and drive effective efforts to mitigate or capitalize on top priority risks.
Our ERM cycle includes processes and tools to identify, prioritize and respond to high priority enterpriserisks. The process operates within the context of the overall corporate strategic planning process andwithin the boundaries established by our company’s continually evolving risk appetite. The program
includes distinct effort to address both nearer-term existing risks, as well as longer-term emerging
risks. Emerging risk scenario planning is critical as these types of risks are often more difficult to alignto a single function within the company, thus making ownership more difficult to apply. If ignored, emerging risks can quickly gain momentum – oftenwith devastating effects.
We identify and evaluate risks across all organizations within the company and across many dimensions. Through our ERM discipline, we categorizeboth existing and emerging risks within the following groupings:• Business/Strategy• Financial• Operational• Technology/New Product Development• Legal, Regulatory, Compliance and Ethics• Human Capital• Reputational
Communication and reporting continue throughout all phases of the process. All business groups and support functions report top risks to the executive
staff and Board of Directors on a quarterly basis. Presentations to the Board include a risk heat map depicting the associated group’s top risks, risk
rating score, target risk level and a summary of relevant mitigation actions, including status and completion timeframe. Emerging risk sessions are
conducted semi-annually with results also reported to the executive team and Board.
Critical to the execution of the ERM program, we have appointed a Chief Risk Officer and a Corporate Risk Committee, in addition to creating acomprehensive network of ERM Risk Champions to support the program. Risk champions are individuals from all functional groups within our company
who are trained to be ERM subject matter experts within their organizations and to help drive risk management discipline across all levels within theirrespective groups. While our executive team continues to set a strong tone at the top regarding risk management, the risk champions are key to driving
an even stronger mood in the middle. Through their actions, example and guidance, risk champions lend credibility to the direction set by the Boardand senior corporate staff with respect to risk management.
One significant component of our company’s ERM program that cannot be overemphasized is in the conversation, communication and collaboration
driven by the process. The program promotes better strategic decision making across all levels and functions of the company. While our ERM program
continues to evolve, mature and improve, we have already made great strides in making it a critical activity which has the full support of executive
leadership and the Board of Directors.
.
Page 10

Corporate Social Responsibility Report

Quality and Reliability
We have demonstrated our commitment to live by stringent, internationally accepted requirements for reliability and quality. We launched the Road
to Zero Defects initiative over three years ago to eliminate quality excursions, improve 8D responsiveness, lower our parts per billion (ppb) defect rateand enhance our quality standards. We recognize that incorporating these objectives in our service offerings, processes and products will establish thefoundation to use our quality and reliability as weapons of growth for the corporation. Ultimately, we are committed to maintaining a distinctive, worldclass quality system, which transcends all international quality standards and aims to exceed customer expectations.
Culture of Quality
Every other year, we survey our employees globally to measure their understanding of the company’s quality initiatives and to gain insight on theirperception of our quality program. A strong culture of quality is defined by an environment in which employees hear, feel and see quality all aroundthem. From May through June of 2016, 84 percent of our employees participated in the survey, bringing up the total response rate by nine percentage
points from 2014.
Results from the survey demonstrated that we improved performance due to increased focus on our quality culture and performance in our Road toZero Defects projects. Overall, our company performed higher than the average score of benchmark companies surveyed in the areas of employee
ownership, peer involvement and leadership emphasis. An area of improvement recognized through the survey is message credibility. In an effort tocontinuously improve, our quality groups solicited recommendations on how to perform better in this area, allowing the company to better meet thegoal of improving culture of quality, which benefits our employees, customers and company.

Our Commitment[G4: 102-16] [G4: 102-18] [G4: 205-1] [G4: 412-1]

A central component of corporate social responsibility at our company is based on our membership of the Electronics Industry Citizenship Coalition(EICC). As a full member of the EICC, we abide by the EICC Code of Conduct and are committed to upholding EICC standards regarding labor, ethics,
environment, health and safety, and management systems. We also follow environmental laws, regulations and other social responsibility requirementsthat are applicable to our activities and our customers’ products. As a sign of our commitment to corporate social responsibility, we are dedicated toadhering to the increasing number of laws and regulations such as RoHS (Restriction of Hazardous Substances) and REACH (Registration, Evaluation
and Authorization of Chemicals) within our manufacturing process as well as our suppliers’. We continuously work with our suppliers to certify that our
products are free from any restricted materials and to ensure that all metals utilized in our products are sourced from conflict-free mines.
Our corporate social responsibility steering committee comprises of leaders from corporate social responsibility, quality, legal, supply chain, humanresources and environmental, health and safety (EHS). The committee is responsible for ensuring that a corporate social responsibility system isestablished, implemented and maintained in accordance with the EICC Code of Conduct, international standards and other guidelines as determinedby the organization. Regular review meetings with corporate staff ensure that our strategy continues to be suitable and effective for our growing
organization.
We are deeply committed to meeting or exceeding
the same requirements that we set for our suppliers.
To ensure that each of our manufacturing sites isin compliance with the EICC Code, international
standards and other guidelines, the company relies ona team of highly effective corporate social responsibilitysite champions. Their efforts are strengthened bycorporate social responsibility subject matter experts
in North America, Europe and Asia.

ON Semiconductor

100%
11
10

Of our manufacturing sites completed risk
assessments in 2016.
Manufacturing sites had initial orclosing internal on-site verifications
for CSR in 2016.
Manufacturing sites completed
initial or closing VAP audits
in 2016.
Page 11

Outside of our responsibilities as an EICC member, we assess other risks related to our own operations. Our company lists 24 manufacturing facilities
around the world in our 2016 Sec Form 10-K. All locations were initially considered when risk was assessed and continue to be assessed on an ongoingbasis. Since we sell our products around the world, the risk assessment is based on location and types of customers.
While there are no significant risks that were identified, some areas presented a greater risk than other areas. In assessing the risks related to corruption,a major factor is the ranking of the country in which our factory is located according to the Transparency International Corruption Perceptions Index.
For the 10 countries in which we have factories, two countries were in the lower half of the 2016 country rankings – the Philippines (ranked 101) and
Vietnam (ranked 113). Additionally, we have a greater risk with customers in China (ranked 79) because a number of electronics manufacturers arestate owned enterprises and their employees are considered government officials under the U.S. Foreign Corrupt Practices Act.

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

Our supply chain has a multifaceted supply structure of direct materials suppliers, foundry and subcontractor providers, indirect material suppliers andprofessional service providers deployed across a global sourcing and procurement organization. We worked with approximately 7,000 suppliers in theAmericas, Asia Pacific, Europe and the Middle East in 2016. The various categories of suppliers are managed through both centralized strategic sourcing
organizations and site procurement teams.
ON Semiconductor 2016 Spend
The following graphic shows what percentage of our manufacturing sites’ procurement
on Local Suppliers by Region
budgets were spent on suppliers local to the site’s region in 2016.
Through the acquisition of Fairchild Semiconductor in 2016, we have increased our global
manufacturing and support footprint. The only change to the structure of our global supply
chain organization will be the addition of a dedicated direct materials supplier quality
team reporting to the procurement group. Direct material quality has become increasingly
important to ON Semiconductor, necessitating a dedicated team to service all manufacturing
sites.
Setting Expectations
We clearly communicate our expectations to suppliers, assess risks within our supply chain
Data does not include Fairchild Semiconductor.
and validate the compliance of suppliers to the EICC Code of Conduct and local laws
and regulations through site visits. All suppliers are required to agree and comply with ON Semiconductor’s Code of Business Conduct and the
EICC Code of Conduct. Every other year we require our major corporate and site-level suppliers, based on spend, to resign ON Semiconductor’s CSR
Statement of Conformance, the company’s Code of Business Conduct and the EICC Code of Conduct. As an indication of their agreement, over 200 of
our key suppliers re-signed ON Semiconductor’s CSR
On-site service providers completed CSR
Statement of Conformance and EICC Code of Conduct
training in 2016.
in 2015. While 65 of these suppliers were within the
major corporate supplier category, the remainder fell
Risk assessments were completed bywithin the top spend category of site suppliers. The
ON Semiconductor suppliers in 2016.
company will re-engage suppliers on this initiative in
2017.

69
266

Risk Assessments
Along with signing the CSR Statement of Conformance, our major corporate suppliers must also complete the EICC self-assessment questionnaire,
which serves as a risk assessment tool. While we require all site level suppliers to comply with the EICC Code of Conduct, completing self-assessment
questionnaires is optional, but highly encouraged. In total, 266 suppliers submitted or updated their self-assessment questionnaire in 2015.
Page 12

Corporate Social Responsibility ReportCapacity Building
In the interest of continuous improvement and to remain actively engaged within our supply chain, we offer EICC training to suppliers. The complimentary
online trainings provide further insight on the EICC Code of Conduct and strive to build skills and capabilities that allow our suppliers to meet theindustry standards set forth by the EICC. Forty-two suppliers of ON Semiconductor Malaysia also attended an in-person compliance and ethics briefingin May 2016 that covered anti-corruption and other topics of our Code of Business Conduct and the EICC Code of Conduct.
To further strengthen due diligence within our supply chain, we expanded the scope of training to include on-site service providers in 2016.
Complimentary online training on the EICC Code of Conduct was provided to management staff of on-site service providers at our manufacturinglocations.
Validation
On an annual basis, we seek to validate supplier and on-site service provider conformance to the EICC Code of Conduct and local laws and regulations
through third party verification. If any discrepancies are found between EICC standards or local laws and practices, we work closely with our suppliers
and on-site service providers to address nonconformance through corrective action plans.
Conflict Minerals in Our Supply Chain
As a purchaser of products containing the metals tin, tantalum, tungsten or gold (conflict minerals) from suppliers for use in our manufacturing process,we continue to be concerned about the reports of violence and human rights violations resulting from the sourcing of such metals from the Democratic
Republic of Congo (DRC) and adjoining countries. As a result of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act
and related U.S. Securities and Exchange Commission implementing rules, public companies are subject to disclosure requirements for the purpose ofpromoting awareness on the use of conflict minerals.
Conflict minerals are obtained from sources worldwide, and we do not desire to eliminate those originating in the DRC and adjoining countries.
However, we are committed to ensuring conflict free sourcing of minerals from our supply chain through collaboration with our suppliers. As a memberof the Electronic Industry Citizenship Coalition (EICC), we also participate in the Conflict Free Sourcing Initiative (CFSI), which began as a joint effort
between the EICC and Global e-Sustainability Initiative (GeSI). Being a member of the initiative requires that members engage in reasonable due
diligence with their supply chain to assure such minerals are not being sourced from entities supporting armed conflict within the DRC and adjoining
countries. We also recognize the importance of supporting responsible mineral sourcing from the DRC and adjoining countries so as not to negatively
impact the economies of those countries.
We expect our suppliers to engage in due diligence to analyze their sources and to complete the CFSI Conflict Minerals Reporting Template (CMRT).
Suppliers must ensure that all minerals sold to or used to manufacture products for use by us originate from certified conflict free smelters validated ascompliant by the CFSI protocol. This global initiative utilizes an independent third party to evaluate a smelter’s procurement activities and determine if
the smelter demonstrates that minerals they processed originated from conflict free sources.
In 2015, we achieved our road to zero unknown smelters. Supplier conformance and incorporation of new requirements are an on-going process andwe will continue to review and update our information as necessary. If we become aware that our supply chain includes uncertified minerals sourced
from a conflict region, we will take action to promptly review the circumstances and remedy the situation as appropriate.
Please see our latest conflict minerals report for more information.

Looking Forward: Responsible Sourcing
To continually improve our due diligence within our supply chain, we plan to develop a corporate social
responsibility awareness package and corresponding online training that clearly outlines our expectations
and assist suppliers in understanding and complying with corporate social responsibility standards.
ON Semiconductor

Page 13

Recognition
Gigabyte 2016 Corporate Social Responsibility Award
Our company was presented with a “2016 Corporate Social Responsibility Award” and a “2016 Best Partner Award” by Gigabyte Technology. We were
one of only two companies being recognized for both awards for our significant achievements in corporate social responsibility, technology, quality
and customer satisfaction. The corporate social responsibility award was attributed to our satisfying Gigabyte’s strict requirements in all of the six
categories, namely corporate social responsibility management, environmental protection, labor practices and human rights, fair business practices,supply chain responsibility, and contribution to community and society. More and more of our leading customers are recognizing their suppliers who
have developed a solid corporate social responsibility program, and they are incorporating corporate social responsibility performance into their criteria
for supplier selection.
EICC Validated Audit Program (VAP) Platinum Status
The EICC aims to drive continuous improvement and recognize the value of factories complying with EICC standards.
After achieving a full score of 200 points in the factory’s first EICC VAP, our site in Roznov received the highest levelof recognition through a platinum status award. The recognition demonstrates ON Semiconductor Roznov’s efforts,
commitment and leadership in corporate social responsibility.
Ecovadis
EcoVadis is an online corporate social responsibility platform that aims to improve environmental and social practices of companies by leveraging theinfluence of global supply chains. The assessment is based on four themes: the environment, labor practice and human rights, fair business practices
and sustainable procurement. EcoVadis assesses company policies and practices on aspects such as energy consumption, local pollution, health andsafety, labor relations, corruption and bribery, and human rights within the supply chain.
In August 2015, we completed our third EcoVadis Assessment to evaluate our corporate social responsibility initiatives. Overall,
we scored 75/100, giving us a Gold rating. The significantly improved score also places us alongside 2 percent of all 150
companies surveyed in the “Manufacturer of Electronic Components or Boards” industry category. Through this result, we areconsidered “advanced” in that we have a structured and proactive approach to corporate social responsibility; policies andtangible actions on major issues with detailed implementation; and significant CSR reporting and performance indicators. We
will complete our next EcoVadis assessment in October, 2017.
Celestica Best Sustainability Partner Award
In 2016, we were presented with Celestica’s Best Sustainability Partner Award as a testament to our long-term commitment to provide the electronics
marketplace with a broad range of innovative, energy efficient semiconductor products that offer industry-leading levels of performance and reliability.

Page 14

Corporate Social Responsibility ReportPRINCIPLES

ON Semiconductor

Page 15

OUR GOVERNANCE AND ETHICS“ON Semiconductor strives to achieve the strongest culture of organizational ethics by aligningethical judgement with action throughout the company. We encourage employees
across the entire enterprise to be leaders in modeling ethical behavior on a dayto-day basis. By ingraining this in our company culture, we are committed tofinding better ways to deliver superior performance in our business operations,compliance, ethics and corporate social responsibility.”
Sonny Cave, Executive Vice President, General Counsel, Chief Compliance and Ethics Officer, Chief Risk Officer and Corporate Secretary

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

All business conducted at our company by employees, managers and officers is under the direction of the chief executive officer and the oversight of
the Board of Directors. The Board has at least five scheduled meetings annually at which the Board and its 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
Report Overview
Total board size

10

Independent directors

9

Women on the board

1

Age limit

75 years old

Board breakdown by age and genderF – 1; M – 9
Age: 54, 55, 58, 61, 61, 61, 63, 68, 69, 73

Number of board meetings annually• Audit committee

Quarterly at minimum• Compensation committee

Twice per year at minimum• Corporate governance and nominating committee

Twice per year at minimum• Executive

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

As deemed appropriate

Taxes paid to government

Page 16

See 2016 Sec Form 10-K

Corporate Social Responsibility ReportManagement Approach
Our Corporate Compliance and Ethics Program is designed to assist the company in preventing,detecting and responding to unethical or illegal conduct and to promote a culture at
ON Semiconductor that encourages ethical conduct and a commitment to compliance with thelaw. The Audit Committee of the Board regularly oversees and reviews the company’s Corporate
Compliance and Ethics Program. The Board is also informed of the state of this program andindividual incidents on a regular basis.
The Corporate Compliance and Ethics Program provides a procedural framework for enhancing
and monitoring our compliance with the Code of Business Conduct, the policies referenced in the
Code and all other rules or regulations governing the company and our worldwide operations.
Additionally, the program is structured to comply with, among other laws and regulations, therequirements of the Sarbanes-Oxley Act of 2002, the Foreign Corrupt Practices Act of 1977, theDodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the Listing Rules of
NASDAQ Stock Market, Inc.
The Corporate Compliance and Ethics Program is strengthened by a network of 35 Complianceand Ethics Liaisons (CELs) located at our sites around the world. CELs provide vital support andassistance to the Chief Compliance and Ethics Officer, as well as other senior management in the
day-to-day implementation and administration of the Corporate Compliance and Ethics Program.
The CELs serve as the first local point of contact for employees who have concern regarding
issues or events that may be in conflict with our Code of Business Conduct or any other company
policy, regulation or law.

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Representatives from the Corporate Compliance and Ethics Program Committee visited the
majority of the former Fairchild Semiconductor locations to share an overview of our robust
compliance and ethics program and to discuss the importance of promoting an ethical culture
and doing the right thing. Our new colleagues showed sincere appreciation that senior membersof the Corporate Compliance and Ethics Program had traveled from Phoenix, Arizona to meetwith them to discuss the importance of compliance and ethics. We added to our strong networkof compliance and ethics liaisons by appointing CELs at some of our new sites including Bucheon,
South Korea; Cebu, Philippines; Mountain Top, Pennsylvania; Munich, Germany; Singapore; South
Portland, Maine and Suzhou, China. As we continually strive to further strengthen our program,the company appointed a CEL for Nampa, Idaho and Meridian, Idaho, three additional CELs
in Malaysia, and appointed two new assistant compliance and ethics officers based in Europe
and Asia. We are aware of cultural differences and takes those into consideration to create andpromote an environment in which all employees feel comfortable speaking up to raise questions
or voice their concerns.

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Corporate Compliance and Ethics Program

Page 17Ethics AwarenessGlobal Compliance and Ethics Week
Every year, we celebrate Global Compliance and Ethics Week, which coincides with The Society of Corporate Compliance and Ethics (SCCE) andthe Health Care Compliance Association (HCCA)’s Corporate Compliance and Ethics Week. The event is an opportunity for companies to highlightthe importance of ethics and compliance in the workplace and educate employees further on ethical practices. We showcase the advancements of
our Corporate Compliance and Ethics Program and reinforce what employees learn during the annual Code of Business Conduct rollout. The week
provides awareness, recognition and reinforcement of our Corporate Compliance and Ethics Program as well as location-specific learning activities andcelebrations.

Looking Forward: 2017 Global Compliance, Ethics and Corporate Social Responsibility Week
In 2017, we will include information and activities related to corporate social responsibility during our company’s annual Global
Compliance and Ethics Week. Due to strong links and common themes between ethics, compliance and corporate social responsibility,
we believe this will be an effective method of further educating our employees on the topics.

Ethics and Compliance Training[G4: 205-2] [G4: 412-2]

Code of Business Conduct
Our company’s Code of Business Conduct is a critical part of our Corporate Compliance and Ethics Program. The Code embodies legal and ethicalbusiness conduct embraced by our company. We require our employees to apply the Code of Business Conduct to their day-to-day business dealingsand personal activities that relate to the company. It is available for employees to review in 14 different languages, making it easily accessible toemployees where we do business.
The Code of Business Conduct is reviewed annually by our legal team. Every year, we require the Board of Directors and all employees to read,understand and comply with the updated Code of Business Conduct, and also take a related online training.

Corporate Social Responsibility
We conduct mandatory corporate social responsibility training for all employees each year, with the latest in October 2016. The training covers issues
central to the EICC, such as labor standards, health and safety, environmental sustainability and conflict minerals. We also provide additional corporatesocial responsibility-related training to our corporate social responsibility site champions, internal auditors and subject matter experts who promotecompliance with EICC standards and best practices in corporate social responsibility at our manufacturing sites at an on-going basis.

Looking Forward: 2017 Corporate Social Responsibility Training
In 2017, we will increase the breadth and depth of our annual corporate social responsibility training to include information onother topics in addition to EICC compliance and conflict minerals. Our training will educate employees on other corporate social
responsibility topics such as eco-efficiency, the global reporting initiative, corporate philanthropy and employee volunteerism.

Page 18

Corporate Social Responsibility Report

Information Technology Security AwarenessAs a company, we take information security seriously. Our greatest tool in preventing a security breach is our employees. We provide annual information
security awareness training in 14 languages, conduct mock social engineering campaigns globally and ensure employees are provided guidance andtraining on what a potential information security threat can look like and what to do when they suspect a malicious threat. As we protect information,
whether it be customer, employee or intellectual data from unauthorized access, use, disclosure, disruption, modification, inspection or destruction, weare constantly innovating to reduce the potential risks to our information network. In 2016, we achieved a 100 percent completion rate for information
security awareness training.
For the first time, we hosted a global Cyber Security Awareness Month in October 2016. The initiative aimed to promote better habits of responsible
information protection in our work and personal lives. Each week, employees were provided a scenario that promoted good practices including
protecting our company’s network, controlled access to systems and passwords, backing up critical data, safeguarding sensitive information, legallypurchasing and licensing systems and using company resources appropriately.

Supplemental Compliance Training
Every other year, we also require managers and other select individuals to complete additional compliance-related training courses such as anticorruption, anti-harassment/anti-discrimination and other topics. Having a strong compliance and ethics culture is vital to the success of our company.
Maintaining and strengthening a vigorous corporate ethical culture will mitigate risks, make our company a great place to work, improve our businessand financial performance, protect our company’s reputation and goodwill and provide a competitive advantage in the market. In total, all Board
members received communication on the company’s anti-corruption policies and programs and received training on the topic during the annual
Code of Business Conduct training. One hundred percent of the employees selected completed a standalone anti-corruption training. The employees
selected for the training make up approximately 23 percent of our employee population, including those who joined the company through the Fairchild
Semiconductor acquisition. One hundred percent of the employees selected also completed the anti-harassment/anti-discrimination training from
November 2015 until January 2016.

100%
100%
100%

Completion for Code of Business Conduct, EICC
and Information Security Awareness trainings.
Completion for anti-harassment
training.
Competion for anti-corruption
training.
Americas: 2,203

Asia: 3,543

EMEA: 1,498

Public Policy and Activities
We support public policies that encourage the innovation, investment and open markets necessary to advance the company’s vision of driving energy
efficient innovations that empower customers to reduce global energy use. Our public policy program reflects our profile as a global company thatis headquartered in the United States, interacting regularly with governments around the world. Much of the company’s public policy advocacy is
performed through the U.S. Semiconductor Industry Association (SIA), although our company is also a member of local associations in the regions inwhich we operate.

ON Semiconductor

Page 19

We have been an active participant in the World Semiconductor Council (WSC), an organization composed of the world’s leading semiconductor
industry associations from China, Chinese Taipei, Europe, Japan, Korea and the United States. The organization meets annually at the CEO level to makerecommendations to governments and authorities on issues such as expanding the global market for information technology products by promoting
fair competition, sound environmental and health & safety practices, intellectual property rights and open markets.
Among the public policies that we supported in 2016 were the following:• The Information Technology Agreement (ITA) – In December 2015, trade ministers from over 50 countries agreed to expand the ITA and thereby
eliminate tariffs on approximately $1.3 trillion in annual global exports of information and communications technology products, thus lowering thecost of these products for consumers. The original 1996 ITA eliminated tariffs ON Semiconductors, computers and telecommunications equipment,
but with the explosion of global trade in IT products and with technology advances creating products that did not exist in 1996, the need to update
the ITA became increasingly paramount. In 2016 the semiconductor industry focused on facilitating the implementation of the ITA expansion
agreement in conjunction with the update of the World Customs Organization’s harmonized product classification system.
• Tax Regulations – We supported the semiconductor industry’s efforts to ensure that the U.S. Treasury Department’s proposed Section 385 rules
did not unintentionally disrupt routine international business transactions that allow U.S. companies to compete in global markets. The final
regulations substantially resolved the industry’s concerns.
• Automotive Safety – In 2016 we began engaging with government agencies and industry associations to discuss the contributions that
semiconductors, and particularly image sensors, can make to Advanced Driver Assist Systems (ADAS) to improve automobile safety. Over a million
people die each year due to automobile accidents, and the United Nations has declared that 2011-2020 is the Decade of Action for Road Safety.
In the United States alone, ADAS can prevent about 10,000 fatalities from automobile accidents.
• Stopping counterfeit semiconductors – Counterfeit semiconductors are unreliable and can fail at any time. The semiconductor industry has foundcounterfeits in air bags, train braking systems, and other applications where a failure can have serious health or safety consequences. In 2016, we
assisted law enforcement to identify and prosecute brokers of counterfeit goods, and strengthened its internal policies to prevent counterfeits fromentering the supply chain.

Political Contributions
In the U.S., companies and other organizations are allowed to organize Political Action Committees (PACs) to support political candidates with funds
contributed by qualified employees. Our company has chosen not to have a PAC and did not make any political contributions in the company’s namein 2016.

Ethics Hotline
We have a Corporate Compliance and Ethics Program designed to prevent and detect violations of our Code of Business Conduct, other standards ofconduct and the law.
If employees have a concern of this nature, they may report it anonymously or otherwise using the Ethics Hotline which is available for employees byphone, toll-free, 24 hours a day, seven days a week. Translators are available in all languages where we do business. Alternatively, questions and reports
may be made to the Ethics Hotline online. Except as restricted by law, employees may make reports to the Ethics Hotline anonymously. Our company
makes it clear to employees that it will not retaliate against anyone who raises a concern in good faith.
U.S. and Canada: 1-800-243-0186
All other locations: AT&T country access code + 800-243-0186.
However no access code is required for China, Hong Kong, Korea, Slovenia and Thailand.
Online: https://onsemiconductor.tnwreports.com/

Page 20

Corporate Social Responsibility Report

Recognition2017 World’s Most Ethical Company
For the second time in a row, we received the coveted World’s Most Ethical company designation by the
Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices.
We were one of six companies being honored in the Electronic Components and Semiconductors category,highlighting our leadership among global companies in ethical business standards and practices. We
attribute this prestigious recognition to our longstanding and active pursuit of the total alignment of all
business objectives with exercising utmost care and commitment to ethical stewardship. Our principles
of compliance, ethics and social responsibility are modeled from the top and instilled in each employee,in accordance with our Core Values of Integrity, Respect and Initiative. This commitment results in trustfrom customers and partners, who count on us to be honest and equitable, even in the toughest of times.

“As the landscape of the semiconductor industry remains fluid and continuously
consolidating, the ability to consistently demonstrate ethical operations andculture remains critical to business operations. The key factor to outpacing
competitors is to stay true to a foundation built on integrity and accountability.
Leveraging our ethical practices is one of our biggest differentiators.”
Keith Jackson, ON Semiconductor President and CEO

ON Semiconductor

Page 21

TALENT

Page 22

Corporate Social Responsibility ReportOUR PEOPLE“At ON Semiconductor, we believe our company’s vision, mission,values and culture provide opportunities to all employees. We develop
and empower our employees to lead in their workplace. Working
together, as one global team, will drive continued success. By
cultivating a diverse and empowered workplace, ON Semiconductor
will meet or exceed the expectations of our stakeholders – employees,
customers, suppliers and shareholders around the world.”
Tobin Cookman, Senior Vice President, Human Resources

Overview[G4: 102-7]

Our global community of employees is based in locations around the world with major facilities in the U.S.,
Belgium, Canada, France, Ireland, Slovak Republic, Czech Republic, Japan, Korea, China, Malaysia, Vietnam and
the Philippines. As of December 2016, we had approximately 32,000 employees in total, with over 900 based at
our corporate headquarters in Phoenix, Arizona.

Worldwide Workforce byRegion11%

14%Management Approach
Our human resources group has the primary responsibility of attracting, developing and retaining the best andthe brightest globally. The senior vice president of human resources resides over groups such as organizational
development, talent acquisition, total rewards and performance management and is heavily involved with the
Senior Leader Inclusion and Diversity Council.
The human rights and workplace rights of our workers, as stipulated under the EICC Code of Conduct and local
laws and regulations, are monitored and managed collaboratively through our corporate social responsibility,
environmental, health and safety, legal and human resources groups. We adhere to human rights-related
standards including freely chosen employment, anti-human trafficking, prohibition on child and young labor,
non-discrimination and anti-harassment, among others. Our corporate social responsibility site champions andworking team members engage in quarterly key performance indicator reporting on labor, ethics and health andsafety metrics. On an annual basis, each of our manufacturing sites also complete a risk assessment and undergo
on-site verification.
ON Semiconductor

75%
Americas

Asia

EMEA

Data presented as of December 31, 2016

54%

46%
Page 23

Recruitment and Retention[G4: 401-1]

We proactively seeks new candidates to add to our innovative and customer-oriented organization. We continually look for talented candidates
who desire challenging, empowering and engaging careers. To further diversify our workforce, we recruit university graduates and candidates fromunderrepresented groups who bring various perspectives and diverse knowledge to the company.
Along with our STEM UP (Science, Technology Engineering and Mathematics for all Underrepresented Populations) and women’s leadership affinity
groups, human resources in the U.S. partnered with organizations such as the National Society of Black Engineers, Society of Hispanic Professional
Engineers and the American Indian Science and Engineering Society to reach historically underrepresented populations in 2016.
New Hires

Americas<30 years: 142
30-50 years: 126
50+ years: 70

Asia<30 years: 60
30-50 years: 58
50+ years: 15<30 years: 1,290
30-50 years: 341
50+ years: 9

EMEA<30 years: 1,684
30-50 years: 318
50+ years: 2<30 years: 140
30-50 years: 70
50+ years: 8<30 years: 105
30-50 years: 76
50+ years: 11

Data presented is as of December 31, 2016.

We strive to create an environment in which our employees are supported, engaged and committed. We drive programs to foster higher levels of
employee engagement and reward our employees well in order to reduce global turnover.
Internal Transfers and Promotions
In addition to our external recruiting efforts, we look within the company for new ways that current talent can contribute to our operations. We support
transfers and promotions so employees can gain further experience while taking on a new role or responsibility locally or globally.
Voluntary Turnover by Region

Promotions Globallyby Gender

8.9%
7.4% 7.4%

Transfers Globallyby Gender

7.5%
5.5%
3.6%

Americas

Asia

2015
2016

30%
54%

46%

70%

EMEA

Data presented is as of December 31, 2016.

Professional Training and Development[G4: 404-2]

We are considered among best-practice companies as our investment in professional development opportunities continues to grow. Our employee
learning and development programs equip employees with the skills necessary to complete their work safely, ethically and efficiently, while also
ensuring that our critical talent pipelines can meet future needs.
Page 24

Corporate Social Responsibility ReportAll new employees go through new employee orientation to familiarize them with all aspects of the company, including operations, strategies andexpectations. The training also covers environmental health and safety awareness, corporate social responsibility as well as our expectations for ethicalconduct.
Our company’s leadership development program is focusing on building leaders that drive continuous improvement of company performance in themarketplace and workplace. We have increased spending on training partnerships, course content and learning management system exploration.
Our executive leaders are committed to providing professional development with a focus on leadership to better equip our employees with the tools
necessary to become effective leaders.
Skillsoft Leadership Advantage
In June 2016, our organizational development team, in partnership with SkillSoft expanded the availability of cutting-edge professional development
offerings by 200 percent. This allowed an additional 4,000 employees to have the opportunity to attend eLearning courses, read best-selling businesssummaries and watch lectures by the most influential leaders around the globe. Skillsoft Leadership Advantage is comprised of eight leadership topics
including leading strategic ability, managing, self-management, talent management, working with others, analytical skills and business acumen.
Lean Six Sigma
Access to Lean Six Sigma has also expanded in an effort to create an informed and ready-to-act workforce. Since 2015, over 1,200 employees havecompleted the online Lean Six Sigma Awareness course which was designed to work in tandem with Black Belt certification and Kaizen eventsoccurring around our company.
Educational Assistance
We offer an educational assistance program to encourage employees to increase their technical competence and deliver value-added contributions
toward company objectives by pursuing professional development through continued education. Employees may receive assistance for courses,
certification programs and degrees for furthering their formal education. The courses, certification programs and degree programs covered under thispolicy must meet certain criteria established by our company.

Professional
Development
Integrated core competencies
into our performance
management
process

2016 Global Learning and Development

Highlights

Course Offerings
More than 500 business courses in over 20 categories including:• Strategy and innovation• Project management• Management & leadership• Professional effectiveness• Global business

ON Semiconductor

Desktop Skills
Increase course offerings
by more than 200%
More than 500 courses in basic, advanceand expert levels of learning

Instruction Lead
Training
Introduced additional topics on soft skills
curriculum for professional development

Page 25

Commitment to Diversity[G4: 405-1]

We have long remained committed to diversity and inclusion, recognizing that the company is at its strongest when it effectively draws upon the wide
variety of experiences, knowledge, culture, customers and backgrounds from all employees and leaders. As a company, we celebrate differences andpromote an inclusive environment by valuing the contributions of our employees. Our knowledge of diversity goes beyond race, ethnicity and gender.
Diversity is about understanding and embracing the unique differences, talents and perspectives of employees, customers and suppliers. Diversity ofthinking helps us continue to encourage the creativity and innovation necessary for us to maintain a competitive advantage in the global marketplace.
We believe our company’s vision, values and culture afford opportunities for everyone to make a difference in building a successful global business. We
are constantly striving towards a more diverse workplace which benefits our company and enables us to more successfully meet the needs of all our
stakeholders – customers, suppliers, employees and shareholders worldwide.
Senior Leaders Diversity and Inclusion Council
The Senior Leaders Diversity and Inclusion Council is a governing body that provides
leadership, direction and support to make us a more diverse and inclusive company. Throughthe Council, we continued to support the Women’s Leadership Initiative and also sponsoreda new affinity network group called STEM UP in 2016. These groups help facilitate
networking, mentoring, cultural awareness, encourage recruitment, provide employee
development and retention along with increased collaboration and innovation. Charters
for both affinity network groups align seamlessly with our Core Values and have three key
focus areas: workplace inclusion, workplace diversity and community partnerships.
We strongly believe a commitment to diversity and inclusion is a commitment to all
employees as well as a winning business strategy. For us, this means that employees are
empowered to make decisions, coworkers treat each other with dignity and respect and all
people including customers, suppliers and the communities we come into contact with arevalued.

Hispanic or Latino
4.5%
Black orAfrican American
1.5%

White
70%

Two orMore Races
0.6%

Asian
16.5%

Native Hawiian or
Other Pacific Islander
0.4%

American Indianor Alaskan Native
0.3%
Undeclared
6.2%

Women’s Leadership Council
In the spirit of employee development and in combination with diversity recognition, our Senior Leaders Diversity and Inclusion Council has been
expanding the Women’s Leadership Initiative since its inception in 2014. While beginning with the corporate office location, we have held eventsin Arizona, California, and Europe over the last two years. In August 2016 ON Semiconductor co-hosted an
event with Avnet’s Women’s Forum and Medtronic’s Women’s Network. The event featured a prominent guest
speaker and provided an opportunity for participants to network and interact in round table discussions withexecutives from Avnet, Medtronic and ON Semiconductor. To further expand its reach to Asia, the Women’s
Leadership Council will hold its first event in China in 2017.

Women’s

Leadership

Some topics covered through the Women’s Leadership Council’s networking events, conferences, recruiting
events, guest speakers, book clubs and lunch-and-learns include:• Learning how leading companies utilize the expertise of both men and women to achieve success• Understanding the importance of setting up structures and strategies to ensure that women are considered for advancement• Preparing for supporting women’s efforts through mentorship, sponsorship, marketing and other activities• Exploring issues of creating a life of well-being and wisdom as a female leader• Interacting with other professionals who are involved in advancing women

Page 26

Corporate Social Responsibility ReportIn the Spotlight
Arizona Republic’s prestigious 2016 Who’s Who in Business listed our company as one of the Top 10 Publicly Held Arizona Companies. Additionally,
two of our executives were listed among the state’s highest ranking women – Debbie Brogan, vice president of corporate program management,
and Kimberly Appleton, vice president of global sales operation.
Brogan and Appleton have led, fostered and strengthened our company’s Women’s Leadership Initiative as it has grown to become a fully
inclusive, global program in 2016. Both vice presidents sponsored this corporate led initiative’s expansion outside of North America with kick off
events in Europe and Asia. Brogan and Appleton were inspired to launch this initiative because their own careers have grown through similar
programs and mentoring of women leaders.
“As a company, we are honored to be named to the 2016 Who’s Who in Business,” said Appleton.
“We are also personally proud to represent our company’s diversity by being listed among Arizona’s highest ranking women executives,” added
Brogan. “Our goal for ON Semiconductor’s Women’s Leadership Initiative is to facilitate networking for a diverse and inclusive group that
promotes our company’s Core Values, while providing the tools needed to succeed in today’s business world.”

STEM UP
Following the success of the Women’s Leadership Initiative, we launched the STEM UP affinity group in February 2016. STEM UP works with groups
like the Women’s Leadership Council, human resources, the employee activity committee
and the general employee population to develop and retain a diverse workforce which
positively affects our company’s outcome with regard to innovation and performance. The
key drivers or focus area of STEM UP are:
• Recruitment
Provide support to take advantage of diverse recruiting events
In 2016, we attended the National Society of Black Engineers Conference, the Society of Hispanic Professional Engineers Conference and theAmerican Indian Science and Engineering Society Conference to attract talent from diverse population groups.
• Retention
Provide a more inclusive environment for all employees
A key element of STEM UP is the ambassador program which strives to integrate new hires into the company and provides them with a strong
support system through resources and networks. New hires are paired with an ambassador who provides guidance and support to the new
employees to become acclimated to the company and local area. Through the ambassador program, we aim to promote a more engaged
employee base.
• Service Learning
Provide resources to expose youth and young adults to STEM opportunities and service our local community to create a positive impact and toencourage a diverse talent pool for tomorrow
We worked with several local schools and charitable organizations to serve and inspire children from under-represented populations throughout
the year. For bring your child to work day in April 2016, STEM UP opted to organize a day where students from Griffith Elementary School in
Phoenix toured and learned about ON Semiconductor as well as opportunities within the STEM field.
Our work through STEM UP was also featured in the September 2016 edition of PodPi magazine (Volume 7).
ON Semiconductor

Page 27

Looking Forward: Fostering Diversity
The Senior Leader Diversity and Inclusion Council plans to sponsor more affinity network groups in the future that facilitate greater
networking, cultural awareness, encourage recruitment and provide employee development and retention. Through the affinity
network groups, ON Semiconductor aims to promote greater diversity and inclusion.

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

Employee Engagement
Communication and Transparency
We believe that the best working relationships are fostered through open communication. We maintain an open door policy and encourage employees
to freely communicate with the management staff or the human resources group. We strive to keep our employees informed through quarterly businessperformance meetings, an active intranet platform, regular internal communication emails, an all employee question email box, and the Circuit – amonthly newsletter. The Circuit proves to be an effective medium through which we keep our employees globally informed on business operations,employee engagement, health and safety, community service and other initiatives from our worldwide locations.
Employee Engagement Survey

87%

Of our employees participated in theemployee engagement survey.

We value our most important asset – our employees. Our company conducts surveys to measure the level of employee engagement and to gain
employee perspective on potential improvement points. In September 2015, we partnered with the National Business Research Institute to conduct
the companywide employee engagement survey to ensure valid data gathering, analysis and survey results that truly represent the feelings of ouremployees. All employees were given the opportunity to confidentially and anonymously communicate feedback regarding their work environment,
work relationships, job responsibilities, ethics, culture and the company. We received over 21,000 submissions to the employee engagement survey in2015.
Following the analysis of the employee engagement survey, seven cross-functional global teams gathered recommendations and presented the best
ones to the executive team for consideration. The executive team identified two corporate initiatives to address employee recommendations thatalign with business strategy: communication strategy and career development. The goal of the communication strategy project is to develop effective
processes and methods for communicating strategy to the total company. The career management project develops a process, communication strategy,
tools and feedback to assist employees at all career ladders and their managers with career development.

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Corporate Social Responsibility Report

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

We strongly believe that setting clear performance expectations and goals lead to an overall improvement in business performance. We encourage
our managers to use a fair and objective performance management process by setting clear performance expectations, delivering regular feedback,identifying career paths and development opportunities, properly evaluating performance and linking it to compensation clearly and recognizing andrewarding top performers. In doing so, we aim to motivate and engage our employees. In 2016, all of our employees globally received a performanceappraisal.
Award Programs
We offer a variety of awards for peers to recognize employees. We encourage our employees to engage in identifying colleagues who have demonstrated
exceptional performance in supporting the company’s business strategies, objectives and performance goals. The main award categories include thebravo award, department award, group award, technical article award and science and technology publication award and patent award.
Employee Benefits
To learn more about benefits offered by our company, see our Regional Benefits Summaries online and 2016 Sec Form 10-K.

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

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

Page 29

Health and Safety
Overview
We are committed to providing a safe and healthy workplace and preventing injury and ill health at ON Semiconductor. Health and safety programs
are based on our company’s environmental, occupational health and safety policy and are a priority at each of our sites. We believe that a healthyand safe workplace is vital to the success of our business.
Management Approach
Our environmental, health and safety (EHS) management system ensures that EHS issues are identified, corrected and communicated to management.
We are committed to maintaining and continuously improving our established EHS program. Procedures for our health and safety management system
conform to OHSAS 18001 (Occupational Health and Safety Management System) specifications. ON Semiconductor maintains self-declaration ofconformance by corporate audits and quarterly reviews. In 2014, we implemented an external audit and certification to OHSAS 18001.
Safety Standards and Programs
Our safety standards provide requirements that are applicable to all facilities globally. This global management system allows us to continuously
maintain and improve health and safety work areas. Procedures regarding the following areas are standardized throughout the company, and facility
information is shared with all sites to promote a transparent and reliable culture that further mitigates risk:• Emergency preparedness and response: chemical spills, injury, emergency egress and fire response• Hazardous materials: shipping, receiving and transporting, accumulation and storage, hazardous waste treatment and decommissioning ofcontaminated chemicals• Industrial hygiene and health resources: heavy metals, ergonomics, hearing conversation, ionizing radiation, laser and radio management andmedical restrictions• Safety: equipment and electrical safety, evacuation program, fire protection, vehicle safety, office and space safety, personal protective equipment
program, drinking water protection, toxic and flammable gases, and process safety management
Since launching our safety culture transformational program in 2015, our manufacturing facilities have actively engaged employees to promote a work
environment in which a “no-harm” philosophy prevails. By following the principles of a corporate master plan while also respecting regional cultures,
each of our manufacturing facilities have developed five-year plans to prevent unsafe acts. Goals are related to preventing chemical exposure, reducing
the potential for accidents, assisting employees in developing healthy lifestyles and improving training and communication. Progress toward defined
milestones is tracked periodically.
Health and Safety Data
[G4: 403-2]

Injury Rate
0.99 per 100 employees

Occupational Disease Rate
<0.02 per 100 employees

Work Related Fatalities
Zero

Lost Days
2.42 per 100 employees

Page 30

Health and safety is equally important at non-manufacturing sites as it isat manufacturing facilities, even though the number and level of risks mayvary. In January 2016 corporate EHS launched a campaign to communicate
safety culture improvement matters to non-manufacturing sites globally.
The commitment by each employee to conduct and manage work in asafe manner will ensure that our vision of a working environment free of
unsafe conditions turns into a reality at all of our manufacturing and nonmanufacturing sites.

Corporate Social Responsibility ReportOur Progress
In order to continue measuring our performance in the area of health and safety, we use a formula combining leading and lagging indicators:
Leading:

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

• Trend of lost work days

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

Data presented is as of December 31, 2016.

21%
22%
70%

Decrease in lost work days per 100
employees.
Decrease in the number of all
injuries per 100 employees.
Lower than SIA
benchmark on lost workdays per 100 employees.

Looking Forward: Zero Injuries
We have a vision of zero injuries. To achieve this vision, our company continues to implement programs that transform safety into avalue proposition and deeply ingrain safety culture into our work environment. Employees understand that everybody is responsible
for health and safety and that the actions of one can affect the entire company.

Health and Wellness Programs
Health and wellness continues to be one of the top priorities of our compensation and benefits group. As a company, we are committed to creating aculture of wellness and nurturing a healthy and productive workforce. Wellness includes many different dimensions including physical health, emotional
health, social, spiritual and financial wellness. Although there is a clear advantage to having a healthy workforce we also believe that leading a healthy
lifestyle is just as important outside of work.
North America
In 2017, we will introduce a new, comprehensive, voluntary wellness program that gives our entire U.S. employee population a variety of tools andincentives that support healthy decision-making. Employees will be able to earn cash incentives by completing corporate wellness challenges, taking
advantage of preventive care, reaching step goals, browsing healthy recipes and completing voluntary health assessments. For the last few years, wehave also been distributing a monthly newsletter, titled Inspiring Wellness Newsletter, to detail important health and wellness topics. In addition toawareness-building, we also offered flu shots to all employees in 2016. To promote healthy lifestyles, some of our sites are equipped with gymnasiums,
have yoga classes and offer massage services. Furthermore, for employees and their families who are covered under the company’s medical plan, mostpreventative services are covered at 100 percent. To support our employees’ financial wellness, in May 2016, our 401(k) provider conducted webinars
aimed at saving, reducing debt and preparing for retirement.
EuropeJobfit, a program that emphasizes nutrition, movement and mental health is available in Belgium. The program promotes eating fruits, vegetables andhealthy snacks. Similarly, our site in the Czech Republic also promotes healthy eating and other wellness initiatives. Employees and family membersin Roznov attended a health fair in June 2016 to undergo biometric screenings, blood pressure monitoring and body fat percentage screening. The
program was professionally run and health care providers explained to employees and their family members the importance of preventative healthmeasures.

ON Semiconductor

Page 31

Asia
In Asia, local sites are now posting the Inspiring Wellness Newsletter onsite as well as on their local human resources website. Along with the topics
mentioned in the Newsletter, most sites organize similar activities to mirror monthly topics. Some of our locations in Asia offer health awarenessprograms including regular health talks, vaccinations and other medical tests. We hosted a talk about heat and stroke prevention during the summer togenerate awareness amongst our employees in Malaysia. The one-hour talk was conducted by a local doctor, who covered the symptoms, risk factors
and ways to prevent heat strokes, as well as an ideal diet for staying healthy and hydrated.
Many of our sites around North America, Europe and Asia provide a multitude of opportunities for employees to participate in physical activities. In
2016, many of our sites hosted sporting activities such as basketball, volleyball, futsal, soccer, tennis, ping pong and badminton tournaments. Such
activities are seen as an opportunity for employees to participate in physical activity while also building camaraderie among colleagues.

Recognition
Outstanding Employer Award
Our sites in the Philippines won the Outstanding Employer of the Year Award for the fourth consecutive year from thePhilippines Economic Zone Authority (PEZA). The award recognizes our company’s high regard for worker welfare, the strong
working relationship between labor and management, provision of employment opportunities and effective employee
relations and corporate citizenship programs. The significant recognition is an accurate indicator of one of our key priorities– employee relations.
Global Competitive Employer Award
The Malaysian Prime Minister honored our company with the 2016 Global Competitive Employer award. The award wasin recognition for our great business presence, technology development investment, extensive employee engagement andcorporate social responsibility.
National Model of Employer Award
Our Shenzhen Nanshan site received the prestigious National Model of Employer Award
from the China Federation of Trade Unions. After completing stringent assessments,
including factory audits, collective labor contract verifications, recreational facilities
evaluations, and analyzing feedback from employees, our site received the award formaintaining a cohesive workforce through extensive employee engagement programs.
Forbes America’s Best Employer of 2016
Our company was named in the 2016 Forbes America’s Best Employers list in the“Midsize Employers” category, which includes 250 organizations with 1,000 to 5,000
employees in America. Companies are chosen based on an independent survey from a sample of 30,000 American employees. Additionally, employees
were contacted anonymously to complete an online survey, without involvement from their employer.
MOSHPA Gold Class Award
Both of our manufacturing facilities in Seremban were recognized with Gold Class Awards in 2016 for excellent performance in maintaining a safe andhealthy workplace by the Malaysian Society for Occupational Safety and Health (MOSPHA).

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Corporate Social Responsibility Report

ECO-FRIENDLY

ON Semiconductor

Page 33

OUR PLANET“ON Semiconductor is steadfast in conducting business in a highly ethical, socially
responsible and environmentally sustainable manner. We work to continually
integrate the highest ethical, social and environmental standards in our business
operations and aspire to be a world class corporate citizen that creates a positive
impact in all of the communities where we do business.”
Keenan Evans, Senior Vice President, Global Quality, Reliability, EHS and Corporate Social Responsibility

Overview
At ON Semiconductor we are committed to supporting a greener world by reducing our carbon footprint, actively conserving resources and effectively
partnering with like-minded customers and industry organizations. With an in-house team dedicated to sustainability excellence, we have achievedmarked successes within our many conservation programs. Responsible environmental practices are vital to the success of our semiconductor device
manufacturing business. We continually invest in engineering and administrative controls to prevent environmental pollution. Waste disposal, airemissions and industrial waste water emissions are controlled to meet or exceed legal requirements. Air and industrial waste water emissions aretreated using the most effective technology and employees are trained to conduct procedures to prevent damage to the environment.

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

Page 34

Corporate Social Responsibility ReportClimate Change[G4: 201-2]

We are aware of the potential opportunities and risks associated with climate change and have integrated the process of climate change into ourbusiness strategy in a number of ways. We complete a Carbon Disclosure Project report on an annual basis. Top management at our company is also
focused on reducing our carbon footprint and developing quarterly status reports on this topic. Carbon footprint reduction is aimed at improving theenergy efficiency (electricity and fuel) of the company and electricity consumption reduction of customers’ applications by supplying electricity efficient
semiconductor devices. The importance of energy savings at ON Semiconductor has resulted in 48 projects centered on more efficient usage of energy
and fuel. From a long-term perspective, the company is focused on installing energy efficient systems at our manufacturing sites. We provide leadand halogen-free semiconductor devices and strive to design and supply parts characterized by low energy consumption. The potential risks driven bychanges in climate change regulation may require that we install abatement systems, requiring further research and capital costs. However, we areconfident that we will be able to adapt accordingly within our already environmentally-friendly business processes.

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

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

Total waste is the sum of hazardous waste and non-hazardous waste that is generated from all activities (manufacturing and non-manufacturing).
Total waste includes both solid and liquid waste, but does not include gaseous emissions, wastewater discharges or any wastes associated with on-sitewastewater treatment.
The amount of total waste we reused and recycled in 2016 was 12,995,246 kilograms
while landfill was 11,755,619 kilograms. Total hazardous waste transported in 2016
was 5,460,533 kilograms.
Reclaim and Recycle
Our company’s manufacturing scrap reclamation operations are considered by refiners
to be best in class. The main reclaim center is located our company’s headquarters
in Phoenix, Arizona while some of our manufacturing sites also reclaim and recycle
their own materials. The manufacturing scrap processed can be broken down into two
categories:
Our take-back and recycle program also provides our customers with an environmentally
responsible solution for the return, recycling and disposal of their products, including
evaluation printed circuit boards. This program is designed to ensure compliance withthe current and forthcoming regional regulations involving producer responsibility forrecycling and proper disposal of electronic waste products.
ON Semiconductor

Precious Metal
Bearing Material

Non-Precious Metal
Bearing Material

Scrappeddevices

Copper and alloy
42 lead frames

Printed circuitboards

Copper wire
and tubing

Platinum targets
and evaporator
metallic

SiliconGold targets, wireand evaporator
metallic

Stainless steel

Spent beadblast material

Plastics

Page 35

In 2016, approximately 1,072 metric tons of scrap materials and 877 kilograms of precious metals from our company’s worldwide manufacturing
facilities was processed, sorted and sold for reuse. The reclamation of these materials recouped more than $23 million with an additional $5 – 8 million
estimated with the acquisition of Fairchild Semiconductor.
Water Management[G4: 303-1 – 303-3]

Our conservation and consolidation projects reduced water consumption by 2.2 percent in 2016 compared to the annual consumption in 2015. In total,
we withdrew 11,218,076,415 liters of water and recycled or reused 5,446,796,235 liters (49 percent of total quantity withdrawn).
In 2016, one of our factories located in Seremban, Malaysia implemented a new project to reclaim the reject water from the reverse osmosis (RO) water
system. A total of 229,725 liters of water was recycled in 2016, increasing the amount recycled by 19 percent compared to 2015 at the manufacturing
facility. Our manufacturing facility in Roznov, Czech Republic also expanded its recycling system for reusing production equipment rinse water. The
expansion project increased water recycling by 7 percent compared to 2015. A total of 401,784,000 liters of water was recycled by Roznov operationsin 2016.
Energy Consumption[G4: 302-4]

Energy efficiency is central to our products as well as our operations. Along with reducing energy consumption through the use of our products, we
implement energy conservation and consolidation projects. In 2016, total energy consumption reduced by 3.35 percent compared to the annual
consumption in 2015. There was a 9.62 percent reduction in energy consumption at our wafer fabs and 7.29 percent reduction at assembly and testsites from the previous year.
In 2016, our company’s total energy consumption was 1,401,250,923 kWh, with electrical and fuel consumption (from non-renewable resources)
being 1,220,492,848 kWh and 650,732 gigajoules respectively.
Our Tarlac City, Philippines factory saved 701,336 KWh of power in 2016 by converting several air handling unites (AHUs) to variable frequency drive
motors. Our Niigata, Japan manufacturing site implemented multiple projects to reduce energy consumption in 2016. A total of 40 energy conservation
projects were completed which resulted in a total reduction of 5,000 MWh of energy. Electric power consumption decreased by converting to highefficiency vacuum pumps for existing production equipment. Installation of the new pumps led to a total of 980 MWh annual power reduction.
Idle–stop changes were also implemented on other electric pumps resulting in a 338 MWh power reduction. The Niigata factory installed an inverter
controlled centrifugal chiller that was repurposed from another site. This conservation effort ensued in a 1,020 MWh reduction in energy consumption
in 2016. Inverter power control was applied to a clean-room AHU causing a 707 MWh power reduction per year.

In the Spotlight
All of our assembly and test operation sites in the Asia Pacific region participated in the 2016 Earth Hour celebration. Earth Hour is a global lightsout event that highlights environmental issues. Together, all sites participating in the event contributed around 4,445 kilowatt hours of energy
savings by switching off non-critical lights and appliances from 8:30 – 9:30 p.m. The energy saved in 2016 increased by 200 percent compared
to 2015. Some sites also encouraged vendors and employees to participate in Earth Hour on their own and at home.

Page 36

Corporate Social Responsibility ReportAir Emissions[G4: 305-5]

We are dedicated to reducing energy consumption and our overall carbon footprint annually. Normalized carbon emissions reduced by 1.32 percentage
at our front end sites and by 6% at our assembly and test operation facilities in 2016 compared to 2015. Scope 2 greenhouse gas emissions reduced
by 23,013 metric tons of carbon dioxide due to 48 projects in six countries in the reporting year.
Our company also encourages employees to consider the impact of everyday activities on the environment. We recognize that commuting can be
costly and reward employees who take advantage of various commuting options. This includes vanpooling, carpooling, bus/rail travel and bicycle use.
Incentives at various sites may include:• Vanpooling: ON Semiconductor gives each employee a monthly subsidy for participation in a vanpool and in some locations vans can takeadvantage of covered parking.
• Carpooling: In some locations carpoolers get preferred parking.
• Bus/Rail: ON Semiconductor gives each employee a monthly subsidy for bus or rail fare to and from work.
• Bicycling: In some locations, locked bicycle storage areas and onsite showers for those employees who ride their bikes to and from work areprovided.
• Electric cars: Charging stations are available at some of our locations.
Many of our global sites offer various types of employee trip reduction plans. Monthly subsidies are established by site budget and may vary fromlocation to location depending on local regulatory trip reduction requirements.
Sustainability Objectives: 2016 – 2020

Chemical Consumption
5% (absolute facility chemistry) 3% (normalized manufacturing chemistry)
Energy Consumption
5%
Water Consumption
5%
CO2

Carbon Emissions
5%

Recognition
Energy Efficient Upgrades and Incentives
Our facility in Pocatello received an incentive check in the amount of $480,780 USD for LED
interior lighting upgrades from Idaho Power in February 2016. The Pocatello facility upgraded its
large centrifugal compressor, leading to more efficient operations. The upgrades were estimatedto save over 2,671,000 kilowatt-hours per year, the equivalent electricity needed to power 212
average residential homes. Projects such as this are a direct benefit to our communities as wellas the company’s bottom line.
ON Semiconductor

Page 37

Environmental Sustainability Award
Our Niigata, Japan site was awarded by FM Global with a Significant Progress Award forcontinuous improvements in property loss control with emphasis on reduction of potential
loss exposure. Additionally, the site also received the Niigata Prefecture Environmental
Sustainability Award from the local government, recognizing the company for its best inclass environmental sustainability activities in 2016.
Industrial Waste Water Recognition
For the fourteenth year in row, the city of Gresham, Oregon’s Waste Water Department
recognized our site in Gresham for not having any industrial waste water violation.
Huawei Green Partner Certification
Our company received Huawei’s Green Partner Certification for the period of 2014 – 2016. This certification reflects our capability to meet Huawei’s
stringent requirements in such areas as non-use of restricted substances, energy efficiency, and emission and waste treatment. We submitted
documentation to indicate that we were in full compliance in these areas across our entire supply chain ecosystem. Furthermore, an on-site verification
was carried out by Huawei to validate documentation submitted for our Seremban factory.

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Corporate Social Responsibility Report

COMPASSION

ON Semiconductor

Page 39OUR COMMUNITY“ON Semiconductor is active in initiatives that support social responsibility inthe community at large. The generosity of our employees is evident through thetime, talent and money they donate to foster more successful, safe and healthy
communities. As a company, we are committed to making the world a better
place for everyone.”
Paul Rolls, Executive Vice President, Sales and Marketing

Overview
We strive to make a positive impact in the communities that our employees work and live. We promote projects and services for a wide variety ofcommunity outreach and assistance initiatives. Our financial contributions and employee volunteer efforts have been in the areas of disaster relief, theenvironment, health, human services and science, technology, engineering and mathematics (STEM) education.

Global Corporate Giving Program
Through our workplace giving program, known as the global corporate giving program, we can learn about our employees’ passion and preferences
for charitable causes as well as the most pressing needs within our communities. The global corporate giving program was launched in March 2016
to standardize, streamline and strengthen our impact on society through financial contributions. To actively engage our employees and foster goodwill,
we match financial contributions employees make to charitable organizations. A unique element of our program also enables employees to nominatecharities of their liking to the company for a donation. We strongly believe that this is a meaningful way to support to both our employees andcommunities.

1% Disaster relief
7% Health
17% Environment
25% STEM Education
50% Human Services
Page 40

Corporate Social Responsibility ReportCompetitive Grant Awards
We offer charitable organizations and educational institutions the opportunity to apply for competitive grants that are awarded on a quarterly cycle. We
evaluate applications and invest in programs based on the target population’s need, clear objectives and goals, and the organization’s evaluation plan.
The grants are administered by committee members who represent our sites globally to ensure the funding requests meet the company’s guidelines andalign with our giving priorities. Grantees awarded beyond a certain threshold are also required to share the success of their program and the impact of
their work in the community through grant reporting. We value grant reporting as a means of being accountable and transparent with our corporate
philanthropy. For more information about the company’s global corporate giving grant program, please visit our external website.

Employee Volunteerism
We believe that our role in the community involves both cash and noncash contributions. To encourage employees to volunteer their time, talent, energy
and effort in the community, ON Semiconductor will introduce an employee volunteer program (EVP) for employees in the U.S. and Canada in 2017.
Through the EVP, employees may volunteer with a registered charitable organization or educational institution of their liking during the work week andstill get paid for doing so. Each employee in North is provided up to one full work day of EVP per year. Employees outside of North America actively
support communities through company sponsored events as described in the Community Impact section of this report.

Looking Employee Volunteer Program
Following the launch of a paid employee volunteer program in the United States andCanada, ON Semiconductor plans to expand the reach of the program our employees in
Asia and Europe with regional level policies.

Community Impact: 2016
Education
SanQing Mountain Center Primary School
In May 2016, employees from our Shanghai office organized a drive in which books and stationary were collected anddonated to SanQing Mountain Center Primary School, which is located in a low-income area of China.

5th Youth Electronics Summer Camp
Employees from our design center in Roznov volunteered at the 5th Youth Electronics Summer Camp
with 45 children aged 10 to 16 years old. The key objective of the 11-day camp was to inspire children
to learn more about electronics. Participants built products from prepared electronic kits that ranged
from simple to complex. The children also had a chance to contact an astronaut from the international
space station using an amateur radio.

Musical Instrument Museum
The Musical Instrument Museum (MIM) in Phoenix, Arizona collects, preserves and makes accessible a variety of musical instruments and performance
videos from every country in the world. The organization has remained a committed partner of Arizona’s schools serving disadvantaged children andyouth. One of MIM’s programs, titled STEM + Music, allows students to explore the physics of sound production and learn about how rhythm relates
to math. Through a donation made in 2016, we will support 471 students and 78 teachers from the Balsz School district to participate in MIM’s
STEM + Music program in 2017.
ON Semiconductor

Page 41Camp Aquino Elementary School
Our employees in Tarlac City, Philippines participated in the “Back-to-School Brigade” project in June 2016. The
beneficiary school, Camp Aquino Elementary School, had 10 of their classrooms rehabilitated. Our employees
repaired the ceilings of classrooms, repanited walls, planted flowering plants for their nursery and donated cleaningmaterials to the school.

Ladang Siliau Primary School
The community service group at one of our sites in Seremban supported a local primary school of 42 students
and 11 teachers last year. The group coordinated the donation of chairs, tables and cabinets to refurbish
classrooms and teachers’ offices in the school. Later in the year, our employees also donated notebooks andstationary for students. The efforts of the group reached the local media, as a Tamil News Paper reported on
the goodwill of our employees.

Robotics Institute of Maine (RIM)As Fairchild Semiconductor, we were one of the founding members of the Robotics Instute of Maine (RIM). The organization’s mission is to inspire youth
to gain a new perspective on science and technology by providing opportunities and resources for robotics programs. We help fund robotics teams andcompeitions in Maine through RIM in order to increases awareness of and participations in STEM education.

Environment
Natuurpunt vzw
Our facility in Belgium encouraged employees to participate in a car free day in September 2016. By using alternative
methods of transportation including walking, cycling, carpooling, buses or trains, we aimed to raise awareness on anddecrease the impact of human activity on the environment. To support employee efforts, extra parking spaces close theenterance of the site were reserved and free public transportation passes were provided to employees. In a single day,employees bypassed their goal of reducing distance commuted by 4,000 kilometers. Through our employees’ commitment,
the site reduced 4,289 kilometers in distance commuted (0.76 tons of CO2) using more sustainble modes of transportation.
Our company also donated to the environmental organization Natuurpunt vzw as a way to reward employees for exceeding
the 4,000 kilometers target.

Let’s Clean the Czech
Our site in Roznov hosts volunteer days to help protect the environment on a frequent basis. Seven employees participated in a volunteer activity
by cleaning up the surrounding area of our company’s building and nearby parks. Our employees also volunteered in October 2016 to rake grass inwetlands designated as a natural reserve.

Mangrove Tree Planting
Employees and their family members in Thailand organized an activity in the Kong Kone Village Samut Songkram district to learn about the mangrove
ecosystem and mangrove planting. After hiking and traveling by boat, the team learned from experienced instructors on how to plant the donatedmangrove seedlings.

Page 42

Corporate Social Responsibility ReportCoastal Clean Up Activity
Employees from our facility in Cebu, Philippines participated in a coastal cleanup activity in October 2016. The day
involved removing trash and debris from the beach, increasing awareness on the marine debris problem, popularizing
the concept of waste management and promoting a clean, healthy and sustainable coastal environment. Thirty-fourcompanies and 104 volunteers, including ours, participated in the activity.

Long Creek Watershed Project
We at ON Semiconductor, formerly Fairchild Semiconductor, have been involved with the Long Creek Restoration Project in Maine since 2007. With
funding from the United States Environmental Protection Agency and the Maine Department of Environmental Protection, the project aims to develop
and implement a cost-effective, environmentally responsible and equitable plan for restoring and protecting Long Creek and its watershed. Along withON Semiconductor, the community-based initiative has representatives from watershed municipalities, other businesses, non-profit organizations andstate agencies.

In the Spotlight
The Committee for Sponsorship comprised of employees from human resources, communications, finance and representatives of the local labor
union have coordinated community service activities in the Czech Republic for over 15 years. For the first time this year, the committee organizeda campaign in which charitable contributions were made by our company for every hill biked by employees. The campaign not only promoted
our employees to live healthy and active lifestyles but also fostered goodwill. Employees were encouraged to bike a total of twenty hills overthe course of eight months. For every hill biked by an employee, the site donated $4 USD to charity. At the culmination of the campaign, thecommittee surveyed employees to select the charity that would receive the donation. First, employees who biked all 20 hills were asked tosuggest charities that they would like to see our company support. Then, employees that participated in the campaign but biked less than 20
hills were asked to select one charity from the 11 that were suggested by their peers. Based on the success of the campaign in which 116 bikers
participated, the committee aims to hold the same campaign in 2017.

Human Services
Habitat for Humanity
Our technology development group in Gresham, Oregon spent the day giving back to the community by working with Habitat for Humanity Portland.
Eighteen employees spent the day on a group build project named Glisan Gardens, which includes 25 sustainably built homes which are underconstruction. The group of volunteers contributed to the build plan, which included erecting a second floor outside wall.

Shenzhen Social Welfare Elder Care Center
Employees from our manufacturing site in Shenzhen, China participated in a local volunteer activity at a home for the elderly. A total of 38 employees
volunteered by cleaning the yard, corrdior, and windows of the assisted living home and performed in a variety show to entertain residents.

ON Semiconductor

Page 43

Open Heart Foundation Worldwide Inc.
Employees from Carmona, Philippines spent a day volunteering at the Open Heart Foundation Worldwide
Inc. The organization champions youth by providing them with opportunities to develop their potential andcapabilities. The organization has a vision to empower youth to realize their worth and dignity, and help
equip them with the wisdom to be self-directed, responsible, creative and productive members of society. The
volunteer activity coincided with Children’s Month celebration in the Philippines and included face painting
activities, story-telling and games.

Salberghaus
Our site in Munich supported a local organization, Salberghaus that assists 80 in-need children, aged 2
weeks to 6 years old. The mission of Salberghaus is to provide children a safe, clean and healthy environment
where they can be treated by professionals to help them develop emotionally, mentally and physically. The
organization also provides counseling and care to the families of the children with the goal of reuniting
them. We supported the organization through a financial donation as well as in-kind gifts such as diapers,
toothbrushes and other necessities for children.

Pieta House
For the last six years, our employees in Limerick, Ireland have participated in the annual Ring of Kerry charity cycle event. The 112 mile (180 kilometer)course begins in Killarney, County Kerry and follows the scening Ring of Kerry Route. The proceeds from the event are provided to a charitableorganization named the Pieta House, a local suicide and self-harm crisis center.

Military Assistance Mission, Inc. and Veteran’s Ticket Foundation
To honor those who have and continue to serve and protect us, we supported two local veteran’s organizations: Military Assistance Mission, Inc. andVeteran’s Ticket Foundation. Based out of Phoeniz, Arizona, Military Assistance Mission, Inc. is focused on assisting veterans, active duty members andtheir families with basic necessities including rental and utility payments, education and meals. The Veteran Ticket Foundation, also based in Phoenix,
gives free event tickets to veterans, active duty military and their families. Donations made by employees to the two organizations were matched dollarfor-dollar by our global corporate giving program the week leading up to Veteran’s Day.

Portneuf Valley Paintfest
In the summer of 2016, our employee volunteers from Pocatello, Idaho helped paint the homes of local
senior citizens as a part of the Portneuf Valley Painfest. Currently in its 29th year of operation, the missionof Paintfest is to revitalize home exterior while fostering volunteerism from individuals, businesses
and organizations throughout the community. All paint and supplies are donated and work is done byvolunteers. In all, eight homes were painted during the course of the week.

Page 44

Corporate Social Responsibility ReportFood Not Bombs
Our employees from Seremban, Malaysia assisted a non-government organization that has a mission to alleviate poverty and hunger by saving andrecycling commercially unwanted food which is then cooked and served for free by the organization and its volunteers. From 11:30 p.m. to 2:30 a.m.,
20 of our employees participated in an outreach activity in which they donated and distributed goods, such as food items, mosquito repelent, mats,blankets, toiletries and slippers to the homeless.

St. Mary’s Food Bank
We have a long-standing relationship with St. Mary’s Food Bank through employee volunteerism and corporate donations. St. Mary’s Food Bank
collects and distributes food as a way to alleviate hunger. Every second Sunday of each month, our employees in Phoenix, Arizona and their family
members volunteer time to pack food boxes. In 2016, we volunteered a total of 678 hours to pack 238,417 pounds of food, which is the equivalentof 10,721 boxes.

In the Spotlight
Groups of self-motivated, committed and passionate employees from both of our sites in Seremban, Malaysia launched programs to foster
goodwill and help the local community. A handful of employees from human resources, facilities, procurement, communications and manufacturing
work together to oversee community service groups at both of our sites. The main focus of the groups is to address some of the most pressing
local needs. By engaging non-government organizations in their own backyard, the group is able to identify how additional resources, such as
manpower, financial contributions or in-kind donations, can help bolster efforts to strengthen the site’s surrounding community. Approximately
every other month, the community service groups organize activities focused on education and human service needs. The time, money and goods
donated for these activities are a result of our employees’ generosity and support from site-level management. Over the last year, the groups haveassisted orphanages, hospitals and underprivileged families within the community, schools and elderly care centers. We believe that the integrity
and initiative of our employees from Malaysia is a clear embodiment of our company’s culture and values. Our employees have helped those whoare less fortunate and have shown what it means to be a good corporate citizen through their own accord.

HealthStarkey Hearing Foundation
We continued our partnership with the Starkey Hearing Foundation, which initially began in 2008. The Starkey Hearing Foundation has a mission to
improve the lives of individuals, families and communities throughout the world with the provision of hearing aids. Every hearing aid provided by the
Starkey Hearing Foundation is supported by our company’s Digital Signal Processor and EEPROM integrated circuit at a heavily discounted price. Each
year, the Starkey Hearing Foundation provides more than 200,000 hearing aids to children and adults. Along with donating to the Starkey Hearing
Foundation, our employees also participated in the organization’s 2016 trip to Manila, Philippines to fit hearing aids for patients.
ON Semiconductor

Page 45

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

Canadian Diabetes Association
Our medical and wireless products division hosted a barbeque for employees in August 2016 at the Burlington, Canada site. The day invovled aninter-office soccer match followed by a lunch and friendly games. The highlight of the event invovled a “big splash management” fundraiser, in which
employees donated money to dunk members of the management team. All donations made by our employees were matched by the company anddonated to the Canadian Diabetes Association.

Climb to Conquer Cancer
For a number of years, our employees and their families have donated to and participated in the Climb toConquer Cancer event held by the American Cancer Society. We helped in funding and servicing a water
station on the day of the walk and subsidized registration fees for our employees and family members toclimb South Mountain in Phoenix, Arizona. In total, 101 employees and family members fparticipated in
the climb in February 2016.

Dong Nai Red Cross
In the summer of 2016, our employees from Vietnam collaborated
with Dong Nai Red Cross in organizing a blood donation event at one of our Vietnam manufacturing sites.
Approximately 200 employees registered to become blood donors while 125 employees donated blood
during the event.

Page 46

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

Below are a list of externally developed economic, environmental and social charters, principles, or other initiatives to which we subscribe or endorse:• Carbon Disclosure Project• China Power Supply Society• Conflict-free Sourcing Initiative (CFSI)• Corporate Secretaries and Governance Professionals• Electronic Components Industry Association• Electronic Industry Citizenship Coalition (EICC) and their Environmental Sustainability and Conflict Minerals groups• Ethisphere’s Business Ethics Leadership Alliance• Europe’s Energy for Green Society ENIAC JU Project• Fab Owners Association• Global Semiconductor Alliance• Hearing Industries Association• Malaysian Institute of Integrity and Corporate Integrity Pledge• Microelectronic Industry Design Association (MIDAS) Ireland• Motor Equipment Manufacturers Association/ Original Equipment Suppliers Association (MEMA/OESA)• National Association of Corporate Directors• Power Sources Manufactures Association (PSMA)• Semiconductor Electronic Industries in Philippines Inc. (SEIPI)• Semiconductor Industry Association (SIA)• Society of Corporate Compliance and Ethics• Sustainability Reporting Group, American Council for an Energy-Efficient Economy (ACEEE)• World Semiconductor Council (WSC)
Below are a list of memberships in which individuals from our company have positions on governance bodies:• AirFuel Alliance, Bob Klosterboer, Member of Board of Directors• Arizona State University, Jeffrey Wincel, Member of Board of Trustees• Association of Corporate Counsel, Mark Rogers, President (Arizona Chapter)• CEB Compliance & Ethics Leadership Council, Founding Member• Electronic Components Industry Association, Jeff Thompson, Member of Board of Directors• Electronic Industry Citizenship Coalition (EICC)• Goodwill of Arizona, Debbie Brogan, Member of Board of Directors• Juvenile Diabetes Research Foundation, Desert Southwest Chapter, Kris Pugsley, Member of Board of Directors• Semiconductor Industry Association (SIA), Keith Jackson, Member of Board of Directors

ON Semiconductor

Page 47

Stakeholder Engagement[G4:102-40] [102-42 – 102-44] [G4: 102 – 46 – 102-47] [G4: 103-1]

We believe that the views of our stakeholders are important in making operational and strategic decisions. We identify stakeholders that either have asignificant impact on or are significantly impacted by our company’s operations. The method and frequency of engagement varies by stakeholder type.
However, we aim to engage stakeholders through conferences, membership and associations, surveys, reporting, scorecards, assessments, philanthropy,
employee volunteerism and social media throughout the year. Further detail on how we engage our stakeholders can be found in the table below:
MethodDescription

Employees
Open-door policy

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

Training

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

Employee engagement survey

We conduct an anonymous employee engagement survey every other year to seek employees’ opinions on topics such as work environment,
work relationships, job responsibilities, etc.

Performance appraisals

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

Culture of quality survey

Every other year, we survey employees globally to gain insight on their perspectives on how quality is ingrained within the company’s culture.

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

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

Affinity groups

We have two affinity groups: the Women’s Leadership Initiative and STEM UP to engage our employees in North America and beyond.

Customers
Customer scorecards

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

Quarterly business reviews

We discuss results from customer scorecards and customer site visits to our facilities through the quarterly business reviews.

Customer satisfaction surveys

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

Ask an expert forum

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

Industry associations and conferences

We participate in a variety of conferences with our customers, including the Electronic Industry Citizenship Coalition (EICC) conference on anannual basis. The EICC conference in particular allows us to engage our customers on issues related to sustainability and social responsibility.

Trade shows

Our company participates in many trade shows throughout the year to engage existing and new customers and distributors.

Suppliers
CSR letter of conformance

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

Self-assessment questionnaires &EICC compliance checklists

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

Corporate social responsibility training
programs

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

Industry associations and conferences

We participates in a variety of conferences with our suppliers, including the Electronic Industry Citizenship Coalition (EICC) conference on anannual basis. The EICC conference in particular allows us to engage our suppliers on issues related to sustainability and social responsibility.

Training

Select suppliers are trained in the EICC Code of Conduct annually to increase awareness on and promote compliance with standards on labor,
ethics, health and safety, environment and management systems.

Government
Public policy advocacy

Our company actively engages associations that make recommendations to governments and authorities on policy issues related to thesemiconductor industry.

Non-government organizations & communities
Corporate philanthropy

We support and strengthen local communities through financial investments. We partner with nonprofit and educational organizations inorder to address some our communities’ most pressing needs through grants.

Employee volunteerism

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

Investors
Earning calls

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

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

Page 48

Corporate Social Responsibility ReportMaterial Topics
For our 2016 Corporate Social Responsibility Report, we specifically engaged our board of directors, executive staff, employees, customers and suppliers
to determine the materiality of economic, environmental and social issues. The issues presented in our materiality matrix were narrowed down based on
our knowledge of the industry as well as sustainability trends. While all fourteen issues are ultimately considered 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

Business ethics
Air emissions

Importance to Our Stakeholders

Innovation

Worker H&S

Human rights

Water management
Waste management

Energry efficient
products

Economic performance

Cost effectivenessConflict minerals

Diversity

Career development& management

Community engagement

Economic
Environmental
SocialImportance to Our Business

ON Semiconductor

Page 49

Aspect Boundaries
Boundaries
Category

G4 Material Aspect

Internal

External

Entities Impacted

Air emissions
Business ethics

Report Overview

Environmental
Economic

Emissions
No corresponding G4 material aspect

x
x

x
x

Manufacturing sites, local environment
Employees, customers, suppliers, communities, investors

Career development/leadership
Community engagement
Conflict minerals
Cost effectiveness
Diversity
Economic performance
Energy efficient products

SocialSocialSocialSocialEconomic
Environmental

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

x
x
x
x
x
x
x

Human rights

SocialHuman rights assessmentxx

Employees
Employees, Communities
Customers, suppliers, communities
Manufacturing operations, customers
Employees
Employees, investors
Design and manufacturing operations, customers,
environment
Employees, customers, suppliers, communities

Innovation-

No corresponding G4 material aspectxx

Design and manufacturing operations, customers

Waste management
Water management
Worker health and safety

Environmental
Environmental
Environmental

Effluents and waste
Water
Occupational health and safety

x
x
x

x
x

Manufacturing operations, community, environment
Manufacturing sites, community, environment
Employees

x
x
x

x

Additional Data
Workforce Statistics[G4: 102-7 – 102-8] [G4: 401-1] [G4: 404-1]
Gender
Total
Contractors & Interns

3,206

Regular employees

29,505Full time employees

32,469Part time employees

242

New hires

4,525

Turnover

4,808

Age Group

M

F

1,553
(48%)
16,242(55%)
17,667
(54%)
128
(53%)
2,196
(49%)
2,334
(49%)

1,653
(52%)
13,263(45%)
14,802
(46%)
114
(47%)
2,329
(51%)
2,474
(51%)

<30 Years

30-50 Years

Region50+ Years

Page 50

196
(6%)
3,464
(12%)

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

3,341
(76%)
3,079
(64%)

989
(22%)
1,310
(27%)

115
(2%)
419
(9%)

3,644
(81%)
3,842
(80%)

471
(10%)
633
(13%)

410
(9%)
333
(7%)

Average

Male

FemaleDirect Labor

Indirect Labor

Percentage of Employees
covered by CBAs by Country

44.1

44.1

41.3

56.4

33.1

100%

190
25.9
4.6
2.3
30.6
156

140
50.7
1.5
3.4
75.8
69

87%
78%
66%
N/A
N/A
100%

20

30

100%

Not tracked
147
32.2
4.6
3.1
21.8
126

140
30.4
4.7
3.5
61.3
69

148
34.1
4.5
2.5
33.8
57

USA
Vietnam

EMEA

192
(6%)
4,465
(15%)

—

Canada
China
Czech
Japan
Korea
Malaysia
Philippines

Americas—

Training (Hours)
Belgium

Asia
2,820
(88%)
21,576(73%)

Not tracked
22

Not tracked

2%

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

Rate (%)

Contusion23%

Laceration

11%

Strain/torn muscle

11%

Cut

9%

Irritation

9%

Sprain9%

Abrasion

8%

Burn

4%

Cumulative stress disorder2%

Dermatitis

2%

Inflammation2%

Crushing

1%

Puncture

1%

Amputation

0.9%

Avulsion

0.9%

Concussion

0.9%

Dislocation

0.9%

Electric shock

0.9%

Fracture – closed

0.9%

Pinched nerve, infection, headache<0.6

Data presented is as of December 31, 2016.

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 51

2016 Global Reporting Initiative Content Index[G4: 102-55]
GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 102: General Disclosures 2016
102-1

Name of organization

Our Business: Overview – page 5

102-2

Activities, brands, products and services

Our Business: Overview – page 5

102-3

Location of headquarters

Our Business: Overview – page 5

102-4

Location of operations

Our Business: Worldwide Locations – page 8

102-5

Ownership and legal form

Our Business: Overview – page 5102-6Markets served

Our Business: Demonstrated Financial Strength– page 9
Customers: Original equipment manufacturers,
distributors, electronic manufacturing service
providers

102-7

Scale of organization

Our Business: Demonstrated Financial Strength– page 9
Our People: Overview – page 23

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

Appendix: Additional Data – Workforce Statistics– page 50
Number of operations: 50
102-8

Information on employees and other workers(a) Total number of employees by employment
contract and gender

Appendix: Additional Data – Workforce Statistics– page 50(b) Total number of permanent employees by
employment type and gender

Appendix: Additional Data – Workforce Statistics– page 50(c) Report 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(d) Report any significant variations in employee
numbers

The increase in headcount from 2015 to 2016
is partially due to the acquisition of Fairchild
Semiconductor.

102-9

Description of supply chain

Our Business: Responsible Sourcing – page 12102-10Significant changes to organization and supply chain

Our Business: Responsible Sourcing – page 12102-11

Precautionary principle approach

Our Business: Enterprise Risk Management –page 10102-12External initiatives

Appendix: ON Semiconductor Memberships –page 47

102-13

Membership of associations

Appendix: ON Semiconductor Memberships –page 47

102-14

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

102-16

Description of organization’s values, principles,standards, and norms of behavior

Our Business: Core Values – page 5

Governance structure

Our Governance and Ethics: Overview – page 16102-18For further details on impacts, risks and opportunities please see our 2016 SEC Form 10-K.

Our Business: Our Commitment – page 11
Our Business: Our Commitment – page 11102-40Page 52

List of key stakeholder groups

Appendix: Stakeholder Engagement – page 48

Corporate Social Responsibility ReportGRI Standard
102-41

Disclosure
Percentage of employees covered by collective
bargaining agreements

Cross reference or Answer
Belgium: 100%
China: 87%

Additional Notes
Percentage calculated by countries with manufacturing sites.

Czech: 78%
Japan: 66%
Vietnam: 100%
Korea: 100%
USA: 2%102-42

Identifying and selecting stakeholders

Appendix: Stakeholder Engagement – page 48

102-43

Approach to stakeholder engagement

Appendix: Stakeholder Engagement – page 48

102-44

Key topics and concerns raised

Appendix: Stakeholder Engagement – page 48

102-45

Entities included in the consolidated financial statements

See Item 1 Business overview and Exhibit 21 of2016 SEC Form 10-K

102-46

Defining report content and topic boundaries

Report Overview – page 3

102-47

List of material topics

Appendix: Stakeholder Engagement – page 48

102-48

Restatements of informationNone

102-49Changes in reportingNone

102-50

Reporting period

2016 calendar year

102-51

Date of most recent report

June, 2015

102-52

Reporting cycle

Annual102-53

Contact point for questions

Appendix: Contact Us – page 51

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

Report Overview – page 3

102-55GRI Content Index

Appendix: 2016 GRI Content Index – page 52

102-56External assurance

Report Overview – page 3

Appendix: Stakeholder Engagement – page 48

GRI 103: Management Approach 2016
103-1

Explanation of material topic and its boundary

Appendix: Stakeholder Engagement – page 48

103-2

Management approach for material topics

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

103-3

Evaluation of management approach

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

GRI 201: Economic Performance 2016
201-1

Direct economic value generated and distributed

Generated: $3,903.9 million
Proceeds from sale of assets: $0.4 million

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

Distributed:
Cost of revenue: $2,610 million
Operating cost: $1,060.8 million
Cash paid for employee wages and benefits: N/A
Cash paid for interest: $106/7 million
Cash paid for taxes: $27.3 million
201-2

Financial implications and other risks and opportunities due to climate change

Our Environment: Climate Change – page 35

201-3

Defined benefit obligation plans and other retirement plans

See our website for Regional Benefits Summaries
and 2016 SEC Form 10-K.

ON Semiconductor

Page 53GRI Standard
201-4

Disclosure
Financial assistance received from government

Cross reference or Answer
N/A

Additional Notes
ON Semiconductor does not publicly disclose
this information.

GRI 202: Market Presence 2016
202-1

202-2

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

All ON Semiconductor 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.).
Several of our manufacturing sites audit thesecompanies to ensure that EICC standards arebeing met, including those related to minimum
wage.

(c)    Definition used for ‘significant locations ofoperation’.

Manufacturing locations

Proportion of senior management hired form thelocal community

50%

Locations considered are manufacturing sites.

Our Business: Responsible Sourcing – page 12

Data does not include Fairchild Semiconductor.

GRI 204: Procurement Practices 2016
204-1

Proportion of spending on local suppliers

GRI 205: Anti-corruption 2016
205-1

Operations assessed for risks related to corruption

Our Business: Our Commitment – page 11

205-2

Communication and training about anti-corruption
policies and procedures

Our Governance and Ethics: Ethics Awareness –page 18

205-3

Confirmed incidents of corruption and actions taken

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

GRI 206: Anti-Competitive Behavior 2016
206-1

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

We do not have knowledge of any legal actions
pending or completed during the reporting
period regarding anticompetitive behavior andviolations of anti-trust and monopoly legislationin which the organization has been identified asa participant.

GRI 301: Material 2016
301-1 – 301-3

Materials used by weight or volume; percentage ofrecycled input materials used to manufacturing organization’s primary products and services; reclaimed
products and their packaging materials

Our Environment: Conservation – Reclaim andRecycle – page 35

ON Semiconductor spends over $1 billion onvarious parts and raw materials as we manufacture both at internal and external sites. We do
not track or estimate the raw material used in
key manufacturing locations.

650,732 Gigajoules

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

GRI 302: Energy 2016
302-1

Energy consumption within the organization(a)    Non-renewable sources, including fuel types

302-2

Page 54(b)    Renewable sources

N/A(c)    Electricity consumption

1,220,492,848 kWh(d)    Electricity, heating, cooling and steam sold

N/A

None sold(e)    Total energy consumption within organization

1,401,250,923 kWh (5,044,524 Gigajoules)

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

(f)     Standards, methodologies, assumptions and/or
calculation tools used

kWh rate per union volume of fuel type(g)    Conversion factors used

U.S. Department of Energy

Energy consumption outside the organization

N/A

Not evaluatedCorporate Social Responsibility ReportGRI Standard
302-3

Disclosure
Energy intensity

Cross reference or Answer

Additional Notes

Wafer fab energy (electricity & fuel) normalization = 0.078 kWh per unit

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

Assembly & test energy (electricity & fuel) normalization = 1.633 kWh per KWBonds.
302-4

Reduction of energy consumption

Our Planet: Energy Consumption – page 36

302-5

Reductions in energy requirements of product andservices

N/A

GRI 303: Water 2016
303-1 – 303-3

Water withdrawal by source; water sources significantly affected by withdrawal of water; water
recycled and reused

Our Planet: Water Management – page 36

Quantity not evaluated according to source.

GRI 304: Biodiversity
304-1 – 304-3

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

ON Semiconductor does not have any operational sites owned, leased, managed in or adjacentto protected areas and areas of high biodiversity
value outside protected areas.

GRI 305: Emissions 2016305-1 – 305-3

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

Scope 1: 1,279,226 MTCO2
Scope 2: 600,475 MTCO2
Scope 3: N/A

305-4

GHG emissions intensity

Wafer fab GHG emissions (electricity, fuel, PFCs)
normalization = 36.161 grams carbon equivalent
per unit
Assembly & test energy (electricity, fuel, PFCs )normalization = 273.842 grams carbon equivalent per kWBonds

305-5

Reduction of GHG emissions

Our Planet: Air Emissions – page 37

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
tracked at local facility; data not calculated for
global value.

Intensity ratio calculated separately for wafer
fabs and for assembly & test operations.
Scope 1 and Scope 2 included.

GRI 306: Effluents and Waste 2016306-1

Water discharge by quality and destination

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

306-2

Waste by type and disposal method

Our Planet: Waste Management – page 35

306-3

Significant spills

None

306-4

Transport of hazardous waste

Our Planet: Waste Management – page 35

306-5

Water bodies affected by water discharges and/or
runoffNone

GRI 307: Environmental Compliance 2016
307-1

Non-compliance with environmental laws andregulations

None known

GRI 308: Supplier Environmental Assessment 2016308-1

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 12

ON Semiconductor

Page 55GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 401: Employment 2016
401-1

New employee hires by age group, gender andregionOur People: Recruitment and Retention – page 24

Employee turnover by age group, gender and region

Appendix: Additional Data (Workforce Statistics)– page 50

401-2

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

N/A

ON Semiconductor does not publicly disclose
this information.

401-3

Parental leave

N/A

ON Semiconductor does not disclose this information publicly.

GRI 402: Labor/Management Relations 2016
402-1

Minimum notice periods regarding operationalchanges

Belgium: yes
Czech Republic: no
China: yesJapan: yes
Korea: no
USA: yes
Vietnam: no

GRI 403: Occupational Health and Safety 2016403-1

Worker representation in formal joint managementworker health and safety committees

89%

403-2

Types of injury and rates of injury, occupational
diseases, lost days, and absenteeism, and number ofwork-related fatalities

Our People: Health and Safety Data – page 30

403-3

Workers with high incidence or high risk of diseases
related to their occupation

None

403-4

Health and safety topics covered in formal agreements with trade unions

N/A

ON Semiconductor does not disclose this information publicly.

Appendix: Additional Data (Health and Safety
Statistics) – page 51

GRI 404: Training and Education 2016
404-1

Average hours of training per year per employee

Appendix: Additional Data (Workforce Statistics)– page 50

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

404-2

Programs for upgrading employee skills and transition assistance programs

Our People: Professional Training and Development – page 24

We provide transition assistance in special
situations. Examples include job placement
assistance and resume writing services.

404-3

Percentage of employees receiving regular performance review and career development areas

Our People: Performance Management – page
29

GRI 405: Diversity and Equal Opportunity 2016405-1

Diversity of governance body and employees

405-2

Ratio of basic salary and remuneration of women
to menOur Governance and Ethics: Overview – page 16
Our People: Commitment to Diversity – page 26
N/A

ON Semiconductor does not disclose this information publicly.

GRI 406: Non-Discrimination 2016
406-1

Page 56

Incidents of discrimination and corrective actions
taken

None known

Corporate Social Responsibility ReportGRI Standard

Disclosure

Cross reference or Answer

Additional Notes

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

Operations and suppliers in which the right of freedom of association and collective bargaining, childlabor and forced labor may be at risk

ON Semiconductor works with suppliers incountries where the risk of violating labor andhuman standards is recognized as being higher.
To actively address this, ON Semiconductor
requires suppliers to complete self-assessment
questionnaires, provides training and also
conducts on-site verification. In the event thatany risk of violating the right to freedom of
association, existence of child labor or forcedlabor is identified, ON Semiconductor works
closely and diligently with its suppliers throughcorrective action plans. If the nonconformance
is not adequately addressed by the supplier in atimely fashion, ON Semiconductor may choose toterminate its contract with the supplier.
For more information on the company’s management systems related to child labor and forcedlabor please see page 29 of the 2016 Corporate
Social Responsibility report.

GRI 410: Security Practices 2016
410-1

Security personnel trained in human rights policies
or procedures

ON Semiconductor uses both in-house andthird party organizations for security personnel.
Approximately 90% of security personnel aretrained in the company’s human rights policies.

GRI 411: Rights of indigenous Peoples 2016
411-1

Incidents of violations involving rights of indigenous
peoples

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

GRI 412: Human Rights Assessments
412-1

Operations that have been subject to human rights
reviews or impact assessments

Our Business: Our Commitment – page 11

412-2

Employee training on human rights policies andprocedures

Our Governance and Ethics: Ethics and Compliance Training – page 18

412-3

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

Contracts with suppliers contain terms and conditions related to human rights, such as forced
and indentured labor and equal employment
opportunity. Our master service agreements also
contain terms and conditions related to the EICC
Code of Conduct.

GRI 413: Local Communities 2016413-1

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

All ON Semiconductor sites globally are involved
with community engagement and development programs through corporate philanthropy
including monetary donations and employee
volunteerism. To learn more about the company’s
community engagement efforts, please see the
Our Community section of this report on page
40.

413-2

Operations with significant actual and potential
negative impacts on local communities

None

GRI 414: Supplier Social Assessment 2016

ON Semiconductor

Page 57GRI Standard

Disclosure

Cross reference or Answer

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 12

Additional Notes

GRI 415: Public Policy 2016
415-1

Political contributions

None

GRI 416: Customer Health and Safety 2016
416-1

Assessment of health and safety impacts of productand service categories

Over 95% of ON Semiconductor products areavailable in lead-free (Pb-free) packaging.
ON Semiconductor also supports the aim of
REACH in improving the protection of humanhealth and the environment through better andearlier identification of the intrinsic propertyof chemical substances. ON Semiconductor
meets REACH requirements and is committed toprovide our customers with information about
substances in our products according to REACH
requirements.

416-2

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

N/A

ON Semiconductor does not disclose this information publicly.

GRI 417: Marketing and Labeling 2016
417-1

Requirements for product and service informationand labeling

Per labeling requirements of JEDEC standard
JESD97, all shipping labels show whether or
not the products are Restriction on Hazardous
Substances (RoHS) compliant/Pb-free. ON Semiconductor labeling also indicates information
regarding hazardous material to comply with the
China RoHS directive.

417-2

Incidents of non-compliance concerning product andservice information and labelingTo the best of our knowledge ON Semiconductor has not received fines for non-complianceconcerning product and service information andlabeling.

417-3

Incidents of non-compliance concerning marketing
communication

ON Semiconductor is not aware of any non-compliance concerning marketing communication.

GRI 418: Customer Privacy 2016
418-1

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

ON Semiconductor is not aware of any such
substantiated complaints.

GRI 419: Socioeconomic Compliance 2016
419-1

Page 58

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

To the best of the company’s knowledge
ON Semiconductor has not received significant
fines or non-monetary sanctions for non-compliance with laws or regulations in the social or
economic areas.

Corporate Social Responsibility Report®

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

www.onsemi.com

ON Semiconductor

Page 59

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