Innovating fora Better Future2023 Sustainability Report
Executive Summary

Table of Contents

Introduction

03 Highlights

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Appendix

Protecting Our Planet

Ensuring Workplace

Impacting Our Community

Committing to aand Environment

Social Responsibility

Through Giving

Responsible Business

04 About onsemi

11 Annual Inventory of Energy

22 Diversity, Equity and Inclusion (DEI)

24 Giving Now Program, Community

25 Corporate Governance

31 Climate Transition Plan

06 Net Zero Goal

Consumption and Emissions

27 Fair Treatment

32 Detailed Descriptions of Charts

16 Water and Waste Management

28 Supply Chain

34 Third Party Assurance Statement

20 Environmental Health and Safety

30 Information Protection

Our Business

10 Product Stewardship2023 Sustainability Report Executive Summary		

Investments and Commercial Initiatives

Table of Contents |2

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Highlights Awards and Recognition

Barron’s 100 Most
Sustainable Companies;
6 Consecutive Years
In March 2023, onsemi ranked #75 on Barron’s
100 Most Sustainable Companies. Barron’s
looks at 230+ ESG performance indicators andranks companies’ performance over five key
areas: shareholders, employees, customers,
community and planet.

In April 2023, onsemi received an overall ESG
risk rating score of 22.6/100 points (the lower
the score, the better) from Sustainalytics.
The rating puts us at medium risk ofexperiencing material financial impacts
from over 20 ESG factors.

EcoVadis Platinum
Level Recognition;
4 Consecutive Years

In November 2023, onsemi received a scoreof 82/100 from EcoVadis, a leading platform forassessing a company’s environmental, socialand ethics management systems. Overall, ourcompany scored in the top one percent of the
1,322 companies assessed by EcoVadis withinthe “manufacture of electronics components
and boards” category.

In February 2023, onsemi maintained its ESG “A”
rating from MSCI, marking five consecutive years. We
are among the top five industry leaders for our ethicalpractices related to raw material sourcing and humanand labor rights.

Institutional Shareholder
Services (ISS) ESG
Prime Corporate Rating;
4 Consecutive Years

World Finance
Sustainability Award;
4 Consecutive YearsIn April 2023, onsemi maintained a “Prime”
rating by ISS ESG, one of the world’s leading
rating agencies for sustainable investments.
This status is granted to industry leaders who
performed well against universal and industryspecific ESG topics. Our company ranked in
the top 30 percent of the 95 companies rated
within the semiconductor industry.

3BL 100 Best
Corporate Citizens;
2 Consecutive Years
In October 2023, onsemi was ranked #71 on the 100
Best Corporate Citizens list. This ranking is based onover 180 ESG factors in seven pillars: climate change,
employee relations, environment, governance, humanrights, stakeholders and society and ESG performance.

2023 Sustainability Report Executive Summary		Morgan Stanley CapitalInternational (MSCI) ESG “A”
Rating; 5 Consecutive Years

Sustainalytics ESG Risk
Rating Score of 22.6

onsemi received a “B" score on the 2023 CDP Climate Change
questionnaire, a consistent year-over-year improvement from “C” and“D” scores received in 2022 and 2021, respectively. Companies areassessed across climate-related criteria, including risk assessmentand management, governance structure and reduction pathways.

In October 2023, onsemi ranked #28 on IBD’s
100 Best ESG Companies for 2023, representing
an improvement from a ranking of #52 in 2022.
Companies are ranked based on profitability inaddition to their achievements in ethical andsocial responsibility.

Dow Jones Sustainability Index (DJSI)North America; 6 Consecutive Years

In June 2023, onsemi was named the Most
Sustainable Company in the Semiconductor Industry.
World Finance recognizes companies for being anagent of change for climate sustainability. onsemi’s
consistent recognition demonstrates our continued
efforts to creating a more sustainable future.

CDP Climate Change;"B" Score

Investor’s Business Daily (IBD)
100 Best ESG Companies of 2023;
3 Consecutive Years

In November 2023, onsemi was one of sevensemiconductor companies included in the DJSI North
America component. Inclusion in this index is basedon our excellent sustainability performance within thesemiconductor industry on the S&P Global Corporate
Sustainability Assessment (CSA), with criteria including
corporate governance, customer relations, environmental
policy, working conditions and social initiatives.

CDP Water Security;"C" Scoreonsemi received a "C" score on the 2023 CDP Water Security
questionnaire. This questionnaire helps drive improvements inwater management through various factors, including water
usage, measurements and risk assessment.

Introduction |3

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

About onsemi
Company Profile

Founded in

1999

Headquarteredin Scottsdale,
Arizona on Salt River
Pima-Maricopa IndianCommunity landON

Publicly traded(NASDAQ: ON)$8.253

control and robotics, hearing health and diagnostic

intelligent power and intelligent sensing solutions

therapy and monitoring for chronic diseases suchthat help our customers solve challenging problems

as diabetes.

and greatly improve the safety, sustainability andHassane El-Khoury is

power efficiency of end products in the automotive

We also manufacture products used in end-user

and industrial markets.

markets related to computing and consumer networking
and communications such as 5G base stations andthe President & Chief
Executive Officer

In the automotive market, our products enable lighter(CEO)and longer-range electric vehicles (EVs) and hybrid$6,524billion in revenue in 2023

onsemi specializes in delivering industry-leading

million in triple-bottom-line revenue1

smart phones.

vehicles, automatic emergency braking, advanced driver

To support these applications, we offer a robust portfolio

assistance systems (ADAS) and depth sensing that makeof semiconductor products and technologies that

advanced vehicle safety such as pedestrian detection andinclude Silicon Carbide, Image Sensors, Power Modules,

autonomous driving systems possible.

Wireless Connectivity and more. These applications
help our customers create cutting-edge products that

And with respect to the industrial market, our products

solve challenging problems, enhance safety standards

are used to enable highly efficient energy storage andand support the transition to electrification for a more

renewable energy systems, EV charging infrastructure,sustainable future.

industrial automation, smart cities and buildings, motor

28,982
employees2

44%

30%

27%

27%

female2minority workforce (U.S. only)2

female Board of Directors2

female executive leadership2

Tens of billionsof units produced per year20

manufacturing sites worldwide¹Please see pg. 10 for more information on triple-bottom-line revenue.
²As of December 31, 2023

2023 Sustainability Report Executive Summary		

Our Business |4

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

2023 Financial Performance

Business Groups
Advanced Solutions Group (ASG)

In 2023, we sustained solid results financially while demonstrating resilience

semiconductor products to distributors and direct

ASG designs and develops analog, mixed-signal, Power

amid the uncertain macroenvironment. We achieved a record automotive

customers. We also generate revenue, to a much lesser

Management integrated circuits (ICs) and Sensor

revenue that increased 29 percent year over year. Our SiC revenue soared,

extent, from product development agreements andInterface devices for a broad base of end-users ingrowing four times higher than the previous year, and intelligent power

manufacturing services provided to customers. We

the Automotive, Industrial, Compute and Mobile end-and sensing technologies now represent 70 percent of our total revenue.

believe that our ability to offer a broad range of products,

user markets. We implement a platform-based design

Our resilience and consistent performance are aligned with our long-term

combined with our global manufacturing and logistics

approach to rapidly proliferate product portfolios.

strategy of leading in intelligent power and sensing solutions.

network, provides our customers with single-source

ASG offers technology that provides our customers

purchasing.

with system-level differentiation such as multi-phase

In 2023, we were organized into three operating andconverters, alternating current (AC)-DC converters,

reportable business groups: Power Solutions Groupultrasonic sensors, inductive sensors, audiology digital(PSG), Advanced Solutions Group (ASG) and Intelligent

signal processors, analog front ends, Bluetooth Low

Sensing Group (ISG).

Energy, wired connectivity and more.

2022

NTBLR: 1,729

TR: 8,253

2022

TBLR: 6,454

NTBLR: 1,872

TR: 8,326

A: 40

2021

A: 34

2023
2022
2021

TR: 6,740

application functions, including power switching, powerprocessors, single photon detectors, including silicon

conversion, signal conditioning, circuit protection, signal

photomultipliers (SiPM) and single-photon avalanche

amplification and voltage regulation functions. The trends

diode (SPAD) arrays, as well as actuator drivers fordriving growth within our end-user markets are primarily

autofocus and image stabilization for a broad basehigher power efficiency and power density in powerof end users in the different end markets. Our broad

applications, the demand for greater functionality andrange of product offerings delivers excellent pixel

faster data transmission rates in all communications. The

performance, sensor functionality and camera systems

advancement of existing volt electrical infrastructure,capabilities in which high-quality visual imagery iselectrification of power train in the form of EV/hybrid

becoming increasingly important to our customers andelectric vehicles (HEV), higher trench density enabling

their end users, particularly in automotive and factory

lower losses in power-efficient packages and lower

automation and in applications powered by artificial

DISCLOSURE

capacitance and integrated signal conditioning products

intelligence (AI).

Revenue by Region1

7,500

20

0

9,000

D: 58
D: 64

semiconductor (CMOS) image sensors, image signal

Triple-Bottom-Line Revenue (TBLR)

100

D: 52

OEM: 36

ISG designs and develops complementary metal-oxide-

6,000

80

OEM: 42integrated semiconductor products that perform multiple

4,500

60
Other (O)

OEM: 48

PSG offers a wide array of analog, discrete, module and

3,000

O: 39

40
Industrial (I)Intelligent Sensing Group (ISG)

1,500

O: 32

I: 27

20

0

O: 20

I: 28

Power Solutions Group (PSG)

0

I: 28

Revenue by Sales Channel

TBLR: 6,524

NTBLR: 1,729

A: 52

Revenue by Sales Channel (Percentage) | Detailed Description of Chart on pg. 32

2023

TBLR: 5,011

2023

Automotive (A)Revenue (Dollars, millions) | Detailed Description of Chart on pg. 32

2021

Appendix

Revenue by Market (Percentage) | Detailed Description of Chart on pg. 32

onsemi generates revenue from the sale ofcontrollers, gate drivers, direct current (DC)-DC

Committing to a Responsible Business

40

60

Original Equipment Manufacturers (OEM)

Non-Triple-Bottom-Line Revenue (NTBLR) Total Revenue (TR)

80

100

Distributors (D)Revenue by Technology (Percentage) | Detailed Description of Chart on pg. 32
2023

IP: 512022

IP: 482021

IP: 46

increase the use of high-power semiconductor solutions.
The recent increase in the use of wide-bandgap (WBG)

O: 33

IS: 1640

Intelligent Power (IP)

O: 30

IS: 1920

0

to support faster data transmission rates significantly

IS: 1960

Intelligent Sensing (IS)

UNITS

O: 38

80

100

Other (O)

2021

2022

2023

Hong Kong

27

28

26

Singapore

31

26

24

17

18

21

metal-oxide-semiconductor field-effect transistors

United Kingdom(MOSFETs) and diodes, including SiC and insulated-gate

United States

14

17

19

Other

11

11

10

bipolar transistors (IGBT), is further expanding the use of
semiconductor products.

2023 Sustainability Report Executive Summary		

Percentage

Represents sales billed from the respective country or region.

1

Our Business |5

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Net Zero Goal
Overview and Alignment with Near-Term Science Based Targets Initiative
Since 2021, we have had a goal of achieving net zero emissions by 2040 (NetDISCLOSURE

Zero 2040) across Scopes 1, 2 and 3, along with using 50 percent renewable

2022 Baseline Emissions1energy by 2030 and 100 percent renewable energy by 2040.

UNITS

Scope 1and CEO, Hassane El-Khoury, to set near-term science-based emission reductionof Carbon

Scope 3 (Sum of Category Emissions)targets in line with the Science Based Targets initiative (SBTi).

In line with GHG Protocol, our12022 baseline emissions havebeen recalculated from last year’s

Metric Tons

Scope 2In December 2022, we submitted a commitment letter signed by our President

DATA

DioxideEquivalent

disclosure to include emissions from

1,014,836

the acquisition of EFK and Scope

713,547

1 and 2 has been adjusted to only

2,150,040²In line with GHG Protocol accounting

include manufacturing sites.
standards, FERA contributions to(MTCO2e)baseline emissions were recalculated

Science-based targets (SBTs) provide a clearly defined pathway for companies tofrom values published in the 2022

reduce greenhouse gas (GHG) emissions, focusing on deep decarbonization of current

DISCLOSURE

business processes and decoupling business and revenue growth from increased
global warming to 1.5 degrees Celsius, as defined by the Paris Climate Agreement.

1

By December 2024, we intend to submit near-term SBTs for validation by

2

SBTi, and publish the results soon thereafter (completion of SBT validation is3

provide an additional level of transparency toward our Net Zero 2040 goal.

4

Services (PG&S)
Capital Goods

from fuel consumption of Scope 1 and2 emission sources per GHG Protocol

102,663(which includes only our manufacturing
sites), our FERA calculation is

Related Activities

based only on our manufacturing

222,2962

sites for consistency purposes.
In order to align with SBTi, and as

3

Transportation andpart of continuous improvement326,6123

efforts, our Upstream Transportation
and Distribution emissions wereDistribution

are anticipated to encompass manufacturing facilities for Scope 1 and 2 emissions, andare anticipated to be enterprise-wide (i.e., manufacturing and non-manufacturing) for5

Scope 3 emissions, with the exception of Category 3: Fuel- and Energy-Related Activities(FERA). Because FERA is calculated from fuel consumption of Scope 1 and 2 emission
sources per GHG Protocol, our FERA calculation is based only on our manufacturing sites
for consistency purposes. Near-term SBTs for Scope 1 and 2 are not anticipated to include
emissions from our non-manufacturing sites, which represent less than 1 percent of theabsolute reduction targets. For Scope 3 emissions, onsemi’s near-term SBTs are anticipated50%

Operations

MTCO2erecalculated to include a Well-to-

46,47545,556

7

Employee Commuting

17,452

12

Upstream Leased

9

Assetsproduction and distribution (Well-toTank) and the direct-use emissions
from fuel combustion (Tank-to-Wheel).
4This corrects minor typographical orunit conversion errors in the 2022
sustainability report that were limited

Processing of Sold

13,992

Products
End-of-Life Treatment444

of Sold Products
TOTAL

Wheel approach. This includes both
upstream emissions related to fuelBusiness Travel

10

For Scope 1 and 2 emissions, onsemi’s near-term SBTs are anticipated to consist of linear

Waste Generated in

68collective Scope 1 and 2 manufacturing emissions and are not considered to be material.

in near-term reduction efforts covering 67% of onsemi’s Scope 3 baseline emissions andin 2022. Because FERA is calculated

1,414,941

Upstream

Pending the SBTi validation process, the boundary conditions of onsemi’s near-term SBTs

with SBTi, the aggregated goals set out for these four categories within Scope 3 will result

Purchased Goods andexclude the four sites we divested(FERA)

Setting Near-Term SBTs and Boundary Conditions

Distribution) and a linear absolute reduction target for Category 3: FERA. In accordance

emissions from our EFK site andFuel- and Energy-

dependent on SBTi schedule). These milestones are important because theyand Services, Category 2: Capital Goods and Category 4: Upstream Transportation andSustainability Report to includeDATA

GHG Protocol, Applicable Scope 3 Category Subtotals

emissions in the future. SBTi ensures our targets align with the latest science to limit

to consist of a combination of supplier engagement (involving Category 1: Purchased GoodsUNITS

MTCO2eto selected footnoted categories
only. This adjustment does not have amaterial impact on the overall results.

2,150,040

renewable energy goal by 2030.

will align our entire value chain with the goals onsemi sets out to achieve through SBTi.
2023 Sustainability Report Executive Summary		

Our Business |6

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible BusinessBaseline Emissions
Baseline emissions refers to the initial level of GHG emissions
against which annual reductions toward a goal are measured.
Baseline emissions align with the defined boundary conditions of
our anticipated near-term SBTs. Baseline emissions, in conjunction
with annual emissions within goal boundary conditions, areanticipated to be used to demonstrate progress against near-term
SBTs. Annual emissions within goal boundary conditions should
not be conflated with annual enterprise-wide GHG emissions
inventory (reported in the Annual Inventory of Energy Consumption
and Emissions section, pg. 13), which represent the entirety ofan organization’s emissions without respect to goal boundary
conditions. In the event of acquisitions and divestitures that1, 2 and 3 for our decarbonization goals. Emissions are calculated
based on the GHG Protocol.

2023

Scope 1

1,014,836

828,620

Scope 2

713,547

713,968

Scope 32,150,040

1,569,430

Category 1 (C1): Purchased Goods and Services (PG&S)

1,414,941

1,062,5412

Category 2 (C2): Capital Goods

102,663

92,083Category 3 (C3): FERA

222,296

237,688326,612

101,0873

Category 5 (O): Waste Generated in Operations

46,47537,707

Category 6 (O): Business Travel

5,556

9,453

Category 7 (O): Employee Commuting

17,452

17,416942

13,992

11,34544

68

DECARBONIZATION PROGRESSand 3, and are compared against 2022 baseline emissions. Our
combined Scope 1 and 2 emissions were 1,542,588 MTCO2e in
2023 compared to 1,728,383 MTCO2e in 2022, a reduction of
approximately 11%. Our collective Scope 3 emission was 1,569,430
in 2023 compared to 2,150,040 MTCO2e in 2022, a reduction of
approximately 27%. Our specific emission reduction efforts arefurther discussed in the Annual Inventory of Energy Consumption
and Emissions section on page 13.

Category 4 (C4): Upstream Transportation and Distribution

Decarbonization Progress: Scopes 1 and 2 (MTCO2e) | Detailed Description of Chart on pg. 32

2023

S1: 828,620

2022

S2: 713,968

S1: 1,014,836

0

On December 31, 2022, onsemi completed the acquisition of

1,542,588

S2: 713,547

500,000
Scope 1 (S1)

our East Fishkill (EFK), New York fabrication facility. Due to

1,000,000

1,728,383

1,500,000

2,000,000

Category 8 (O): Upstream Leased Assets

2,500,000

Scope 2 (S2)Category 10 (O): Processing of Sold Products

the acquisition closing at the end of 2022, emissions from the
manufacturing site were not included in the baseline emission

2022

progress is shown here. 2023 emissions reflect emissions withinbaseline year acquired emissions and exclude baseline year

2022 serves as our baseline year for GHG emissions across Scopes

ANNUALEMISSIONS WITHIN
SBT1 BOUNDARYCONDITIONS

as we await near-term SBT validation, onsemi’s decarbonizationmaterially impact emissions, baseline emissions are to include
divested emissions.

BASELINE
EMISSIONSIn an effort to disclose our general annual decarbonization progress

the anticipated SBT boundary conditions across Scopes 1, 2

Category 12 (O): End-of-Life Treatment of Sold Products

Decarbonization Progress: Scope 3 (MTCO2e) | Detailed Description of Chart on pg. 32

Appendix

UNIT

MTCO2ecalculation disclosed in our 2022 Sustainability Report. For this2023 Sustainability Report, we have recalculated our 2022
baseline emissions to include emissions from EFK, as well as otherassociated minor adjustments, and have included the results herein.

2022

Throughout 2023, as part of preparation for SBTi validation
decarbonization plan. We conducted internal workshops with

C2
C1

0

Progress Toward Anticipated-Near-Term SBTsof our near-term targets, we worked diligently to create our

Anticipated SBT boundary conditions, based on validation process to be completed by 2024.

1

C1

2023

500,000

C3

C4 O
C2

1,000,000

Category 1 (C1)

Category 2 (C2)

Category 4 (C4)

Other (O)1,569,430
C31,500,000

C4

2

O

2,000,000

2,150,040

2,500,000

Emissions decrease for Category 1: PG&S is attributed to more supply chain primary data of emissions (and less relianceon modeled estimates) in 2023 compared to 2022.
Emissions decrease for Category 4: Upstream Transportation & Distribution is generally attributed to onsemi's efficient3

shipment efforts that consolidated shipments in 2023, which resulted in over 200,000 fewer shipments.

Category 3 (C3)

Emissions for Other (O) is the sum of Category 5 – Category 12.

1stakeholders to aggregate and disseminate information on bestpractices and opportunities that will allow us to integrate ouremissions reduction strategies across our global operations.

2023 Sustainability Report Executive Summary		

Our Business |7

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Climate Transition Plan
As a part of our overall holistic sustainability strategy, our climate

Process gas swaps are our largest opportunity for emissions

Scope 2 General Emissions Reduction Strategy

our overall energy use at our facilities. Typical short-term energy

transition plan is woven throughout this Sustainability Report. The

reductions. While fluorinated gases are an essential ingredient to the

Our Scope 2 inventory consists of emissions from our purchased

efficiency measures at our sites may include LED lighting retrofits,

following section details our decarbonization strategy across Scopes

semiconductor manufacturing recipe, there is interchangeability inelectricity. To align with industry best practices, we’re focusing

smart thermostat controls, variable frequency drive controls and1, 2 and 3. Within the appendix, a climate transition plan index

which gas we choose.

on deep decarbonization before turning to renewable energy

pump overhauls. Mid- and long-term energy efficiency measures

instruments for our electricity-related emissions. Every ton of

typically include measures related to equipment retrofits associatedserves as a quick reference of key elements and their corresponding
sections, enabling easy navigation and information gathering

Where possible, we opt for fluorinated gases with a lower global

CO2e avoided through reduced electricity consumption is a ton

with space cooling (chillers, cooling towers), heating (boilers,pertaining to concrete strategies, targets and actions that will guidewarming potential (GWP) and higher efficiency rates, effectively

we do not need to procure from renewable energy sources, which

furnaces) and process operations (compressors, pumps) at ourour organization’s climate transition.

reducing the emissions intensity of our process and the absolute

makes good business and sustainability sense. As such, we havefacilities.

emissions of our operations.

developed a prioritization pyramid that will help us decarbonize.

Scope 1 General Emissions Reduction Strategy

After achieving optimal energy levels through conservation, reduction

Our Scope 1 emissions inventory consists of emissions from

Point-of-use abatement systems will control remaining Scope 1

We will continue to develop standardized protocols for equipment

and optimization projects, we will shift our focus to distributed

fluorinated greenhouse gases used in semiconductor manufacturing

fluorinated GHG emissions that cannot be eliminated from thetesting, system assessments and metering equipment that will

generation and renewable energy technologies, such as solar or windprocesses (process gases), onsite combustion of fuels, such as

semiconductor manufacturing process. These systems utilize

help us understand the energy use through each of our systems

energy, to power our remaining energy load. In 2024, we anticipate

diesel or liquefied petroleum gas, and heat transfer fluids. At onsemi,high temperature and/or plasma chemistry to convert fluorinatedat our sites. Following these, we will focus on energy conservation

developing strategies to pursue acquisition of renewable energy

we have a tremendous opportunity to reduce Scope 1 emissions

greenhouse gases to non-GHG products, which are further treatedstrategies that will involve no/low-cost improvements. We will

across the enterprise.

through process gas swaps and utilization of point-of-use abatement

using the factory air pollution control and wastewater treatment

then strategize the implementation of short-, mid- and long-term

tools to treat manufacturing exhaust and destroy residual GHGs.

systems.

energy efficiency and system optimization projects that help reduce

Scope 1 Prioritization Pyramid for Decarbonization

Scope 2 Prioritization Pyramid for Decarbonization

Pointof-Use (POU)
Abatement Devices

REI1 &
Distributed

Substitution of Process
Gases with Lower GWP1

System Optimization

Generation• Renewable Energy Credits (RECs)• Power Purchase Agreements (PPAs)• Solar, wind, etc.

• Water Conservation• Process Optimization• Temperature Setpoint Adjustment
Efficient Manufacturing Technologies Suitablewith Lower GWP Gases and Electrification

Energy Conservation & Efficiency• Compressed Air Leak Mitigation• Pump Replacing/Rightsizing• Pump Testing

Optimize Manufacturing Processes;
Reduce Fossil Fuel Combustion

GWP: Global warming potential

1

2023 Sustainability Report Executive Summary		

Infrastructure/Planning Protocols• Compressed Air
System Assessments¹REI: Renewable Energy Instruments

Our Business |8

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Scope 3 General Emissions Reduction Strategy
In accordance with and in preparation for setting an SBT, weeffort to improve data accuracy, we are increasing primary data

will evaluate other ways we can reduce our Scope 3 emissions

collection through a supplier survey to assess GHG emissions

and create positive environmental impact within our value chain.

inventory and other reduction programs in our value chain.

Looking at our upstream emissions (consisting of Category 1:
Purchased Goods and Services, Category 2: Capital Goods andAdditionally, we will look to set a linear absolute reduction

Category 4: Upstream Transportation and Distribution), we plantarget for Category 3: FERA. Because FERA is directly linked

to create a targeted supplier engagement program that will

to our Scope 1 and 2 fuel consumption, the actions taken to

help our top priority suppliers better understand their emissions

reduce our Scope 1 and 2 footprints will also have a direct

footprint and explore setting science-based targets to reduce

impact on our Scope 3 emissions as they relate to FERA.

their footprints. This will ultimately result in the reduction of

In total, the goals set for these four categories will result in

the emissions attributed to onsemi’s Scope 3 inventory. As

long-term reduction efforts for 67% of our Scope 3 baseline

part of our current supplier onboarding process, we requireemissions and will align our entire value chain with the goals we

suppliers to measure and manage their GHG emissions. In an

have set to achieve through the SBTi.

Carbon Removals or Offsets
Consistent with SBTi’s approach, we focus on reducing our

Additionally, there are challenges and uncertainties associatedemissions as much as possible before relying on carbon removalwith developing a transition plan, including:and offsets. For non-electricity-related emissions that cannot be
eliminated, onsemi will explore the purchase of certified carbon
removal or offset credits equal to the remaining emissions.
Green-E and Gold Standard certified removals and offsets are
the most credible and will be prioritized.

• Achieving full and accurate data collection due to inherent
manual data entry processes.
• Facilitating a standardized approach on reduction levers
across our varied operations while balancing production
demands.

Plan Assumptions, Challenges and Uncertainties
In developing this climate transition action plan, some

To mitigate these challenges and uncertainties, we’ve invested

assumptions will be made, including, but not limited to: (i)in GHG emissions calculation accounting software that enables

estimations of current emissions data where data is limited, (ii)

us to track, manage and report consistently across our entire

challenges around proper knowledge sharing by employees

enterprise. We developed education and training workshops thatacross the organization for implementation of proposed

were conducted across our manufacturing sites. As a result, oursolutions, (iii) duration of time needed to hit key milestone tasks,

teams continue to insert climate-related data into more company(iv) uncertainties around the availability of renewable energy andprocesses for more informed decision-making, from new productcredible carbon removal/offset technology in different regions

development and capital expenditure decisions to mergers andthat we operate and (v) projected future organic and inorganic

acquisition due diligence assessments.

growth of the company through 2040. We’re aware of theseissues and will continue to mitigate them over time.
2023 Sustainability Report Executive Summary		

Our Business |9

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Product Stewardshiponsemi is a leader in intelligent power and image sensing
technologies that build a better future. onsemi has components inmedical devices, fitness trackers and smartwatches, autonomousvehicles and EVs, charging stations, solar inverters and more.
We innovate to deliver disruptive technologies that enable ourcustomers to solve challenging problems and create cutting-edge
products for a better future. In so doing, we empower a strong
triple-bottom-line product offering. Our product development
efforts are directed toward:

Triple-Bottom-Line Revenue

We consider these products a key part of our triple-bottom-line product offering, which includes the following categories:

In 2023, onsemi had over $6,524 million in triple-bottom-line
revenue, representing 79 percent of total revenue. Our definitionof “triple bottom line” is revenue from products that fall under
the intelligent power and sensing umbrella and products thatEV Charging

Factory Automation

ADAS

Vehicle Electrification

LED Lighting

Machine Vision

Energy Infrastructure

Medicalcontribute to the triple bottom line – People, Planet, Profit.
The “People” category refers to any product that helps improve
human health or offers support in saving lives. For example, ourimage sensors go into ADAS and automation systems, leading to• Powering the electrification of the automotive industry withincreased levels of safety in automotive applications.

our intelligent power technologies that allow for lighter andlonger-range EVs and enable efficient fast-charging systems.
• Propelling the sustainable energy evolution with our intelligent
power technologies for the highest-efficiency solar strings,
industrial power and storage systems.
• Enhancing the automotive mobility experience with ourintelligent sensing technologies with imaging and depth
sensing that make advanced vehicle safety and automateddriving systems possible.
• Enabling automation and data exchange (Industry 4.0) withThe “Planet” category refers to any product that helps reduce
negative environmental impact throughout its use phase.
Examples include applications that reduce carbon emissions,aid in the transition to renewable energy or enable resource
conservation,such as the reduction of waste and scrap in manufacturing
processes. Our SiC technologies are designed to meet thedemands of higher power and density, and DC fast charging in
the EV charging application.
The “Profit” category refers to any product that contributes toour intelligent sensing technologies for smarter factories andan organization’s ability to provide economic benefit to society

buildings.

by enabling more efficient and productive operations. For

While our new product development efforts continue to focus onbuilding solutions in areas that appeal to customers in focused

example, our image sensors provide high-quality, global shutter

DISCLOSURE

imaging for factory automation applications including robotics
and inspection systems.

assess the deployment of resources and to review the fundingof high-growth technologies. We are also exploring integrating
sustainability and sustainable design in our products.

2021

2022

2023

1,462

1,709

4,646

4,557

Triple-Bottom-Line Revenue

Not
Peoplemarket segments and across high-growth applications, weregularly re-evaluate our research and development spending to

UNITS

PlanetReported
Dollars(Millions)

(NR)
NR

Profit

NR

346

258

TOTAL

5,011

6,454

6,524

74

78

79

Percentage of Total Revenue

Percentage of Total Revenue

2023 Sustainability Report Executive Summary		

Percentage

Our Business |10

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Annual Inventory of Energy Consumption and Emissions
EnergyThe use of energy across the organization consists predominantly

2022

2021

1,781,685

2021

cost savings of approximately $191,000 at our Aizu and Serembansources in this list are direct emissions and are considered Scope 1. We

manufacturing sites.
• Reduction of chiller energy consumption through strategic,0

an annual energy savings of approximately 1.15 million kWh andImplemented customized energy efficiency and energy conservation

Seremban, Suzhou and Cebu (Philippines) manufacturing sites.

hours (kWh) which translates to approximately $832,000 inannualized cost savings at our manufacturing sites in: Aizu, Japan;
Bucheon, Korea; Seremban, Malaysia; Carmona, Philippines;
Leshan, China; and Suzhou, China.
• Optimization of process tools through idling or shutting down,
wherever operationally feasible, resulting in an annual energy
savings of approximately 4 million kWh and approximately$668,000 in annualized cost savings at our Aizu and Seremban
manufacturing sites.

250

300

our EFK site, which was finalized on December 31, 2022.

DISCLOSURE

UNITS

2021

2022

2023

Total Actual Energy Consumption of Owned Facilities (For Annual Reporting Purposes Only)

MWh

1,781,685

1,752,2821

2,208,5732

MWh per $ Million Revenue

264

210

268

1,548,009

1,487,074

1,766,748000173,332

172,028

392,318

4,536

3,170

6,784

Town Gas

25,422

57,88304

chillers and cooling tower infill replacements resulted in an annual

Heavy Oil

28,73430,121

40,670energy savings of approximately 1.7 million kWh and approximately

LPG

1,652

2,006

2,054

$416,000 in annualized costs savings at our Aizu, Cebu andEnergy from Grid

100

100

100

Energy Intensity

an annual energy savings of approximately 7.3 million kilowatt-200

compared to 2022, is generally due to the acquisition of• Replacement of older, inefficient screw/centrifugal air compressors

number of online operational dryers. These measures resulted in150

site, which was finalized on December 31, 2022.

Energy Intensity

consolidations, pipe upsizing, reducing air demands and the100¹The increase in total energy consumption in 2023,

Energy efficiency measures such as:compressed air leaks, line pressure setpoints, CDA line50

to 2022, is generally due to the acquisition of our EFK

500,000 therms of natural gas. These projects represent a total of• Optimization of compressed dry air (CDA) systems by reducing

264¹The increase in total energy consumption in 2023, comparedover 23,000 MWh of purchased electricity and approximately

Energy conservation measures such as:

2100500,000 1,000,000 1,500,000 2,000,000 2,500,000

Total Energy Consumption

measures at our manufacturing sites resulted in a reduction oflimited to):2681

online chillers based on operational needs, which resulted inapproximately $156,900 annualized cost savings at our Aizu,

of over $4.3 million across our enterprise. These include (but are not2023

2,208,5731

proactive monitoring, overhauls and reducing the number ofout of which 1,766,748 MWh was attributed to purchased electricity.

approximately 17,000 MTCOe saved with an estimated investment

Total Energy Intensity

1,752,282

emissions are considered Scope 2 emissions, while the other energy

electricity of Scope 2) in 2023 was 2,208,573 Megawatt-hours (MWh),(MWh per $ Million Revenue USD) | Detailed Description of Chart on pg. 32

2022

consumption of approximately 1.4 million kWh and annualized

Our total energy use (the energy-related portion of Scope 1 and all

Energy Intensity(MWh) | Detailed Description of Chart on pg. 32

frequency drive (VFD) setpoint adjustments, filter upgrades andfuel, town gas, heavy oil and liquified petroleum gas (LPG). Electricity

Appendix

Total Energy Consumption

2023

of purchased electricity and, to a lesser extent, natural gas, diesel

our footprint.

Committing to a Responsible Business• Optimization of air handler unit (AHU) energy use through variable
schedule updates, which led to an annual reduction in energy

strive to use our energy efficiently across all our operations to reduce

Impacting Our Community Through Givingwith newer, high-efficiency centrifugal counterparts, aircompressor overhauls and purgeless air dryer installations, which

Energy Consumption by Source

resulted in a total savings of approximately 3 million kWh of annual

Electricity

energy savings and approximately $559,000 of annualized cost

Renewable Electricity3

savings at our Bucheon, Cebu, Leshan, Seremban and Suzhou
manufacturing sites.
• Replacement of old and inefficient packaged air-conditioner
units with more efficient counterparts, efficiency improvement of

Seremban manufacturing sites.
• Replacement of older, inefficient pumps and motors with higherefficiency counterparts and/or newer technologies resulted
in annual energy savings of approximately 944,300 kWh andapproximately $117,000 in annualized costs savings at our Leshan,
Seremban and Suzhou manufacturing sites.

Natural Gas
Diesel Fuel

MWh

Percentage¹Energy from our 2022 divested sites is included in our actual energy totals through the date of divestiture.
²The increase in total energy consumption in 2023, compared to 2022, is generally due to the acquisition of our EFK site, which
was finalized on December 31, 2022.
³In accordance with the GHG Protocol, renewable electricity consumption listed in this table does not reflect renewableelectricity supplied via the standard electricity grid. Per the protocol, a company must own and retire credits linked to that
renewable electricity production in order to claim renewable electricity consumption.
⁴Prior to 2023, two of our manufacturing sites reported using "Town Gas" fuel. One site was divested during 2022 and the otherwas found to be purchasing fossil methane ("natural") gas, not manufactured gas. As a result, that site's gas usage is now
included in "Natural Gas" and none of our sites used Town Gas in 2023.

2023 Sustainability Report Executive Summary		Protecting Our Planet and Environment |11

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

EmissionsDISCLOSURE

UNITS

2021

2022

Scope 1

2023

Enterprise-wide Emission Inventories by Year1
Scope 1
Scope 2

MTCO2eScope 3

2,485,870

841,104

782,790741,9343

727,4646175

2,098,5416

1,573,4177

2,3

828,620

4Inventories represent annual enterprise-wide emissions and are not reflective of baseline year or emission reduction goal boundary-1

condition considerations. For site divestitures, inventory reflects emissions up through the date of divestiture. For site acquisitions, inventoryreflects emissions after the date of acquisition. Reported annual emission inventories represent those from both manufacturing andnon-manufacturing sites, except for Scope 1 emissions which represent only manufacturing sites. The lack of Scope 1 non-manufacturing
emissions in the inventory is not anticipated to have a material impact on the overall data.

accounting were in development in 2023, including onboarding of-controlled facilities. The largest source of Scope 1 emissions is fromGHG emissions calculation software and an internal proprietary

fluorinated process gases used in manufacturing. Other sources
include fuels used in space or process heating and heat transfer
fluids used in manufacturing equipment.
We use an industry best practice methodology consistent with
IPCC Tier 2c guidance to determine process gas emissions. The
methodology accounts for the utilization efficiency and by-productproduction of fluorinated gases and nitrous oxide within thesemiconductor manufacturing process. Global warming potentials²Starting in 2022, Scope 1 emissions are calculated based on discharged emissions, in line with the IPCC Tier 2c guidance. Per this guidance,from IPCC’s Sixth Assessment Report (AR6) are used to convert gas

we have claimed destruction of certain GHGs within our manufacturing process, which has contributed to the large change in reported Scopequantity to CO2e.

1 emissions as of 2022, compared to 2021.
Scope 1 and 2 annual emission inventory for 2022 includes divested sites up to the date of divesture. A portion of emission reductions

3

observed in 2022, compared to 2021, is due to 2022 site divestitures.
4

Decrease of Scope 1 emissions in 2023, compared to 2022, is generally due to optimized and reduced fuel/process gas usage at our• Data Management: Several innovations to improve emissions

Scope 1 emissions are direct emissions from company-owned andIn 2023, we focused on the following initiatives pertaining to Scope 1

tool. GHG emissions accounting software is anticipated to enable
enterprise-wide data collection from consumption invoicesof process gases, fuels and heat transfer fluids. The other
innovation is an internally developed proprietary tool that enables
direct emissions data to be managed at the manufacturing toollevel, enabling improved access to facility emissions models usedin the IPCC Tier 2c protocol for electronics manufacturing.
• Project Implementation: Best practices have been shared among
our manufacturing sites on technical and operational approaches
for reducing process gas emissions from semiconductor
fabrication.

emissions:manufacturing sites and fuel/process gas reductions due to manufacturing site divestitures in 2022.
⁵2021 disclosure only represents Scope 3 Category 6 – Business Travel data.
⁶This corrects minor typographical or unit conversion errors in the 2022 sustainability report that were limited to selected footnoted categories
only. This adjustment does not have a material impact on the overall results.
⁷Emission reductions in 2023, compared to 2022, were generally due to more supply chain primary data of emissions (and less reliance onmodeled estimates) for Category 1 and efficient consolidation/reduction of shipments for Category 4.

• Optimization of fluorinated gas use: Fluorinated gas use was
optimized in chamber cleaning processes at our Aizu andMountain Top sites, resulting in reduced emissions.
• Emissions Accounting and Abatement: Qualified process gas
point-of-use abatement systems can treat manufacturing exhaustand destroy residual GHG emissions to manufacturer-specified
destruction removal efficiencies (DREs), which varies and canbe in the high 90th percentile. Qualification entails ensuring
the abatement systems are designed for the gas(es) being
treated and are operated/maintained according to manufacturer
requirements. For example, in 2023, our EFK manufacturing site
established data to complete qualification of its greenhouse gas
abatement systems, which previously had been installed but
were not qualified. The 2023 Scope 1 emissions inventory for EFK
reflects reduced emissions, compared to 2022 baseline, due todestruction of residual GHG emissions to manufacturer specified
DREs in qualified abatement systems.

2023 Sustainability Report Executive Summary		Protecting Our Planet and Environment |12

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Scope 1 Emissions by Gas Type1

Total Scope 1 GHG Emissions4(Metric tons of CO2e) | Detailed Description of Chart on pg. 32(Metric tons of CO2e) | Detailed Description of Chart on pg. 32

only. Starting in 2022, this breakdown also includes the Scope 1 emissions from fuel83,6102023

828,6205

2

50,5752

2022

841,1046, 7

CO₂ emissions breakdown in previous years.

Carbon Dioxide (CO2)Prior to 2022, onsemi reported Scope 1 emissions by gas type for its process gas usage

1

usage and heat transfer fluids, aligning with the Greenhouse Gas Protocol methodology
for reporting emissions.

2021

17

2,485,8700500,000

1,000,000

1,500,000

2,000,000

Methane (CH4)

As of 2022, due to the claimed destruction values of NF within the semiconductor3

manufacturing process, per IPCC Tier 2c guidance, there is a large decrease in NF

2,500,000

46

emissions from this year forward.
429

divestitures, inventory reflects emissions up through the date of divestiture. For siteacquisitions, inventory reflects emissions after the date of acquisition. Reported annual(MTCO₂e per $ Million Revenue) | Detailed Description of Chart on pg. 32

emission inventories represent those from both manufacturing and non-manufacturing

30,47928,4082023

100

29,722

2022

101

sites, except for Scope 1 emissions which represent only manufacturing sites. The lackof Scope 1 non-manufacturing emissions in the inventory is not anticipated to have amaterial impact on the overall data.

2021
172,035

Sulfur Hexafluoride (SF₆)

369

0193,063

50

100

150

200

250

300

350

Decrease of Scope 1 emissions in 2023, compared to 2022, is generally due to5

optimized and reduced fuel/process gas usage at our manufacturing sites and fuel/400

process gas reductions due to manufacturing site divestitures in 2022.
Starting in 2022, Scope 1 emissions are calculated based on discharged emissions, in

6

379,787

line with the IPCC Tier 2c guidance. Per this guidance, we have claimed destructionof certain GHGs within our manufacturing process, which has contributed to the large

73,914

Nitrogen Trifluoride (NF₃)

Inventories represent annual enterprise-wide emissions and are not reflective ofbaseline year or emission reduction goal boundary-condition considerations. For site

Scope 1 Emissions Intensity

0

Nitrous Oxide (N₂O)

As of 2022, includes CO₂ emissions from fuel combustion which was not included in ourchange in reported Scope 1 emissions compared to 2021 emissions.

66,10637

1,262,444

Scope 1 annual emissions inventory for 2022 includes emissions from our divested
sites up to the date of divesture. A portion of emission reductions observed in 2022,
compared to 2021, is due to 2022 site divestitures.

38,983

Hydrofluorocarbons (HFCs)

40,26145,499378,930

Perfluorocarbons (PFCs)

444,270
715,545
50,624Heat Transfer Fluids

18,393NR

0

200,000
2023

400,000

2022

2023 Sustainability Report Executive Summary		

600,000

800,000

1,000,000 1,200,000 1,400,000

2021

Protecting Our Planet and Environment |13

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Scope 2 emissions are indirect emissions resulting from theIn addition, we ramped up production activities at strategic

generation of purchased energy. For our purposes, this means our

manufacturing sites with relatively cleaner electric grids andpurchased electricity. onsemi indirectly emits GHG emissions fromcontinued downsizing our non-manufacturing sites:

2023• We ramped up production at our EFK, Bucheon and Roznov

2022

sites. These sites are served by electricity grids that have2021

non-manufacturing sites. Due to the small percentage of emissions
from non-manufacturing sites, onsemi’s near-term SBT will include
our manufacturing site emissions and is not anticipated to include
non-manufacturing site emissions. Disclosure of
non-manufacturing site emissions in the table below is fortransparency purposes.
onsemi’s global Scope 2 emissions in 2023 have reduced from our2022 levels due to the combination of implementation of energy
conservation and energy efficiency/optimization practices at oursites (see Energy section on page 25) and strategic divestitures fromfour sites during 2022.

Total Scope 2 GHG Emissions1 (Metric tons of CO2e) | Detailed Description of Chart on pg. 32

approximately 30 percent (on average) lower carbon intensity
than the average electric grid serving the remainder of ourmanufacturing sites.

Appendix

Total Scope 2 Emissions (MTCO2e)

Scope 2electricity purchased for the operations of our manufacturing andCommitting to a Responsible Business

727,464
741,934
782,790

100,0000

200,000

300,000

400,000

500,000

600,000

700,000

800,000¹Scope 2 emissions for fiscal year 2022 include emissions from our divested facilities up to the dateof divesture. Our Net Zero baseline year (2022) does not include these emissions.

• We also downsized and consolidated over 600,000 square feetof non-manufacturing space comprising offices and design

Scope 2 Emissions Intensity

centers. These downsizing activities are estimated to result in(MTCO₂e per $ Million Revenue) | Detailed Description of Chart on pg. 32

approximately 21,000 MWh of avoided energy use, translating toa reduction of approximately 7,300 MTCO2e from our

2023

88

2022 actual emissions.

2022

89

2021

116

0

20

40

60

DISCLOSURE

80

100

UNITS

120

2021

2022

2023

Enterprise-wide Scope 2 Emission Inventories by Year1
782,790

reduction goal boundary-condition

741,934

727,464

manufacturing sites (location based)
Total Scope 2 Emissions,enterprise-wide emissions and are notreflective of baseline year or emission

Total Scope 2 Emissions,manufacturing and non-Inventories represent annual

1

considerations. For site divestitures,
inventory reflects emissions up
through the date of divestiture. For

MTCO2emanufacturing sites (location-based)

Total Scope 2 Emissions, nonmanufacturing sites (location-based)

782,790

728,370

713,968

NR

13,564

13,496

116

89

88

site acquisitions, inventory reflects
emissions after the date of acquisition.

Scope 2 Emissions Intensity
MTCO₂eScope 2 Emissions Intensity

per $(calculated for total Scope 2)

MillionRevenue

2023 Sustainability Report Executive Summary		Protecting Our Planet and Environment |14

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Scope 3
Scope 3 emissions are indirect emissions that occur in thetargets, per the Supplier Engagement Pathway of thecompany’s value chain, including upstream and downstream

SBTi guidance.
DISCLOSURE

emissions. Consistent with the GHG Protocol, our Scope
3 emissions include 10 categories applicable to onsemi

In 2023, we worked internally to align on cross-functional

operations, out of 15 total possible categories.

best practices to leverage our influence on suppliers.

UNITS

2021

2022

2023

Enterprise-wide Scope 3 Emissions Category by Year1

Through collaboration with suppliers, we can more

1

Purchased Goods and Services (PG&S)

NR2

1,414,941

1,062,5412

For 2023, onsemi Scope 3 emissions inventory waseffectively adjust our efforts with advanced programs and2

Capital Goods

NR

102,663

92,083

1,573,417 MTCO₂e, which accounts for 50 percent of ourby educating those who are earlier on their sustainability
journey. So far, we have engaged hundreds of suppliers,

3

Fuel- and Energy-Related Activities (FERA)

total GHG footprint (combined Scope 1, 2 and 3). Since

NR

203,238

241,675

Purchased Goods and Services (Category 1 of Scope 3

while introducing our new data collection program which

4

Upstream Transportation and Distribution

NR

294,171

101,0873

emissions, per GHG Protocol) account for a significant

has set the foundation to positively impact our Scope 3

5

Waste Generated in Operations

NR

46,4754

37,707

percentage of the total Scope 3 inventory, we have begun

emissions. We have started, and will continue, to gather

6

Business Travel

617

5,556

9,453

to reduce Scope 3 emissions by engaging with our supply

primary data to increase the accuracy of GHG accounting
from our upstream value chain.

7

Employee Commuting

chain partners and encouraging them to disclose their GHG

NR

17,452

17,416

8

Upstream Leased Assets

NR

9

42

10

Processing of Sold Products

NR

13,992

11,34512End-of-Life Treatment of Sold Products

NR

444

68

TOTAL

617

2,098,541

1,573,417

emissions and set their own science-based reduction

MTCO2eApplicable Scope 3 emission categories in line with the GHG Protocol

1

2

Emissions decrease for Category 1: PG&S is attributed to more supply chain primary data of emissions (and less reliance on modeled
estimates) in 2023 compared to 2022.
Emissions decrease for Category 4: Upstream Transportation & Distribution is generally attributed to onsemi's efficient shipment

3

efforts that consolidated shipments in 2023, which resulted in over 200,000 fewer shipments.
4

This corrects minor typographical or unit conversion errors in the 2022 sustainability report that were limited to selectedfootnoted categories only. This adjustment does not have a material impact on the overall results.

Scope 3 emissions accountfor approximately 50% of total
GHG emissions.

2023 Sustainability Report Executive Summary		Protecting Our Planet and Environment |15

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Water Stewardship

WATER USAGE

UNITS

Water is an essential natural resource sustaining life

In 2023, out of 15,652 megaliters of total water withdrawn,

Water Withdrawal

and the ecosystem; it is also a vital element of onsemi’s

1,716 megaliters of water were withdrawn from high water-business. We are dedicated to ensuring that ourstressed region and 854 megaliters from extremely highSurface Water

0

0

0

operations have a positive impact on the watershed andwater-stressed regions (11.0 and 5.5 percent of total water

Groundwater (renewable)

885

1,129

3,618

²Water-stressed regions were identified

surrounding communities. We actively work to prevent

withdrawn, respectively). We utilize the World Resources

Seawater

000identified in extremely high and highany adverse effects on our water systems and strive for

Institute’s (WRI) Water Risk tool to identify if any of oursites are in high or extremely high water-stressed regions.

Third Party Water

12,714

12,563

12,034

water-stressed regions vary year

transparency with our stakeholders, displaying deliberatestewardship of water as a valuable and limited resource.

The designation of a region as an extremely high or high

TOTAL WATER WITHDRAWAL

13,59913,692

15,652¹

and future water risks at the time

We understand that conserving water lowers the cost ofwater stressed region varies year over year based on how

Water Withdrawal Intensity

processing and safeguards the supply of water resources.

WRI analyzes risk. In 2023, two manufacturing sites were

We continue to seek opportunities to reduce, reuse andin extremely high water-stressed regions and four sites

Water Withdrawal Intensity

recycle water through global alignment and benchmarking

were in high water-stressed regions, and the aggregate

throughout all our sites.

number (six) of extremely high and high water-stressed

Water and Waste Management

manufacturing sites identified increased compared to the

Megaliters

Megaliter per $ Million Revenue

Megaliters

Water Recycled

Percentage

Recycling Rateextremely high and high water-stressed regions increased

domestic uses, 20 percent for industrial uses and 60

in 2023 compared to 2022. Evaluation of water region

Extremely High3

percent for production uses. Domestic uses include

stress status will be incorporated into environmental

potable water, sanitation and hygiene, landscaping anddue diligence.

We are in the process of collecting additional(UPW) production and deionized (DI) water production. We

manufacturing site water discharge data to better

monitor and evaluate all the water processes and water

calculate water consumption for future implementation ofdischarge characteristics and continue to implement morewater-related initiatives for the company. In 2024, onsemi

water conservation programs. The bulk of onsemi’s water

will explore development and adoption of an enterpriseconsumption is from our manufacturing sites; however, wewater stewardship initiative.

in our operations, resulting in increased
water withdrawal compared to prior years.
through the WRI Water Risk Tool. Sites

over year, depending on the current

2.02

1.64

1.90

³Extremely high water-stressed regions for2023 include Cebu and Tarlac. For 2022
and 2021, Oudenaarde, Belgium was inhas a general application distribution of 20 percent for

onsemi assumes that all water withdrawn is discharged.

Bucheon facility and accounted for EFK

Water Recycled

Water Withdrawal in Water-Stressed Regions

uses include manufacturing processes, ultrapure water¹In 2023, we significantly expanded our2023

of assessment by the WRI Tool.

prior year. This explains why the total water withdrawal inprocesses, steam generation and ventilation. Production2022(acquisition finalized on December 31, 2022)

At onsemi manufacturing sites, water consumption

the cafeteria. Industrial uses include heat exchange

2021

an extremely high water-stressed region,

5,779
42

5,776
42

High

Megaliters

but onsemi divested this site in 2022.

6,507
42

2

4

Appendix

271

0

854

1,127

515

1,716

4

High water-stressed regions for 2023 include
Suzhou, China; Dong Nai, Vietnam; Binh
Duong, Vietnam; Carmona, Philippines andNampa, Idaho, U.S. For 2022, these regions
included Pocatello, Idaho, U.S. and Suzhou.
For 2021, high water-stressed regions
included Pocatello, Suzhou and Tarlac.

continue to explore ways to track water consumption at
our non-manufacturing sites.

2023 Sustainability Report Executive Summary		Protecting Our Planet and Environment |16

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Water Usage
Demonstrating our commitment to water-use efficiency, our water
recycling rate in 2023 was 42 percent, which equates to 6,507
megaliters of water recycled. onsemi’s water stewardship program isdemonstrated through the following 2023 initiatives:• At our Aizu site, we have initiated several water conservation

onsemi treats water received from our municipal suppliers to ensure

wastewater discharge. onsemi believes it is fully compliant with allprograms, including the reuse of RO “reject water” in industrialthat the water used in relevant manufacturing processes meets

applicable local regulations and requirements to minimize the impact

processes, modification and optimization of maintenancerequired quality thresholds. UPW is a highly purified form of water

to the environment.

programs that resulted in a reduction in wastewater generationand chemical, water and electricity consumption. This equates to• The majority of our manufacturing sites recycle “reject water”
from the reverse osmosis (RO) process and reuse it in cooling
tower applications, eliminating the need to directly withdraw
more water from supply sources.
• At our Seremban site, we have successfully converted aconventional pretreatment system from sand filtration to an
ultra-filtration (UF) system. Upgrading the technology of our RO
DI pretreatment process reduces wastewater generation from 10
to 3 percent, while also improving the filtered water quality fed
through the RO system. Taking such action also has an indirect
benefit of helping save chemical cost for RO membrane cleaning
in the long run.

approximately $83,900 in annual cost savings and 4.3 megalitersof additional water reduction at the site annually.
• At our EFK site, we have consolidated our six sets of RO systems

that has gone through multiple steps of treatment and is commonlyused in the semiconductor industry. It is used in semiconductor

onsemi’s dedication to continuous improvement in safeguarding

manufacturing to wash excess chemicals and materials off surfaces

environmental health and safety is reflected in our investments inof wafers and packaged products, dilute chemicals used in thefacility infrastructure, including the following activities in 2023:

manufacturing process or replace water in cooling systems forcritical applications. UPW can even be used as a humidification

into three, therefore increasing the feed flow and reducing

source for our cleanroom environments. Approximately 40 percent

water reject to wastewater. This initiative will allow us to saveof the total water stream received for the UPW generation process

approximately 90 megaliters of water per year.

is returned for reuse in industrial processes, wherever possible. In• For our Roznov site, we were awarded the most innovative
company by the Czech Republic’s Zlin region for our innovative
cooling solution for grinding processes and cooling water
recycling. Savings of cooling water reached 99.5 percent,equating to an annual water savings of 621 megaliters. This
project also allowed us to reduce system electricity use byapproximately 82 percent.

2023, onsemi produced around 7,500 megaliters (or 7,500,000 cubic• Cebu, Tarlac and Carmona manufacturing sites in the Philippinescompleted construction of respective wastewater treatment
facilities with upgraded tertiary treatment systems. Tarlac andCarmona manufacturing sites completed the upgrade of onsite
sewage treatment facilities. The upgraded wastewater treatment

meters (m³)) of UPW.

system recycles wastewater from industrial processes and water

Wastewater Treatment

annually.

withdrawal is anticipated to be reduced by 26.5 megaliters

The complexity of semiconductor manufacturing technology• Our Seremban site completed a $3.6 million upgrade of thehas increased over time and drives the need to invest in more

onsite wastewater treatment and sewage treatment plant tosophisticated onsite treatment systems to treat wastewater

ensure it was rightsized for our manufacturing operations.

produced from our manufacturing operations. All wastewaterproduced in our manufacturing sites is treated using advanced
onsite treatment techniques before it is discharged under permit toa municipality or other authorized discharge point. The treatment
process can include physical-chemical treatment, wastewater
neutralization, carbon absorption treatment, biological treatment
and tertiary treatment, including ion exchange treatment,
disinfection and membrane treatment, depending on the wastewater
characteristics. The level of treatment is stringent and meets the
local government requirements in the areas where we operate.

For our Roznov site, we were awarded the most innovative company by• Our Dong Nai site completed a $270,000 capability expansion of
its facility wastewater treatment plant to enable the recycle andreuse of an additional 18.5 megaliters of wastewater annually.
• Because our Suzhou site had been identified as being in anarea with high water stress, when it came time to construct
a wastewater treatment system, onsemi invested in a
sophisticated zero-discharge wastewater treatment systemthat was designed to minimize or eliminate the discharge oftreated wastewater into the environment. The goal is to recoverand reuse as much water as possible through multiple rounds

the Czech Republic’s Zlin region for our innovative cooling solution for

onsemi not only monitors water quantity, but also water discharge

grinding processes and cooling water recycling.

quality. We monitor various metrics associated with our wastewaterof RO, leaving little to no wastewater to be released into thedischarge to ensure compliance with pH, temperature, chemical

environment. Residual sludge generated during the treatment

oxygen demand (COD), color, heavy metals, fluorine, nutrients andprocesses is separated and managed separately throughother regulated discharge parameters. In addition to our discharge

appropriate disposal. The remaining minimal stream of rejectmonitoring systems, we perform laboratory analysis on our water

water goes through a controlled evaporation process. Suzhou’sdischarge under local regulations. The laboratory analysis can occur

zero-discharge wastewater treatment system completed

on a weekly, monthly or quarterly basis depending on the permit andthe region. Some regions require real-time monitoring of2023 Sustainability Report Executive Summary		

construction in 2023.

Protecting Our Planet and Environment |17

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Total Waste Diverted from Disposal (Metric tons) | Detailed Description of Chart on pg. 33

Waste Management

Total Waste Diversion Rate (Percentage) | Detailed Description of Chart on pg. 33

Semiconductor manufacturing generates both hazardous andnon-hazardous waste, as classified under local government regulations.

2023

onsemi is committed to compliance with all applicable requirements related to2022

our waste management practices. We ensure there are processes and controls
in place to effectively manage our waste streams, and we strive to reduce the70of waste in manufacturing processes, reuse, recycling and other recovery0

operations. Due to local regulations or limited opportunities for waste diversion,2023

we must often direct the waste generated by our operations to disposal or2022

incineration (including waste to energy incineration). We continue to look for2021

ways to reduce the amount of waste directed to disposal and incineration as

20

40

60

80

40

20

40

60

80

87

2022

86

2022

H: 8,974

2021

H: 9,8420

NH: 16,923
NH: 17,325

5,000

10,00015,5002021

27,16720,00025,00030,000

20

40

60

80

100

Waste Diverted from Disposal
35,000

Hazardous (H)10,000The increase in total 2023 waste generation, as compared to prior years, is

1generally due to the completion of our acquisition of the EFK site which occurredon December 31, 2022.

2023

Metric tons

NR

107

335

Percentage

NR

1

2

Metric tons

NR

983

5,788

Percentage

NR

6

28

Metric tons

NR

13,408

11,791

Percentage

NR

79

57

Non-hazardous waste – fuel blending for fuelMetric tons

NR

4

19

(not to incineration)

Percentage

NR

0

0

Metric tons

14,354

14,502

17,933

Percentage

83

86

87

Metric tons

NR

1

180

Percentage

NR

0

2

Metric tons

NR

158

996

Percentage

NR

2

10

Metric tons

NR

3,015

1,852

Percentage

NR

33

19

Metric tons

NR

426

628

Percentage

NR

5

6

Metric tons

4,161

3,600

3,656

Percentage

42

40

37

Non-hazardous waste – recycling

TOTAL

Hazardous and Non-Hazardous:

Hazardous waste – preparation for reuse• Preparation for reuse – by way of checking, cleaning or repairing, materials
Hazardous waste – recycling• Recycling – reprocessing of materials that have become waste to make newmaterials.

Hazardous waste – other recovery options• Other recovery operations – materials that have become waste are prepared

2023

3.72

2022

to fulfill a purpose in place of new products that would otherwise have been

2021

4.03

0

1

2

3

2023 Sustainability Report Executive Summary		

Hazardous waste – fuel blending for fuel (not to incineration)used for that purpose.

3.11

4

• Fuel blending (non-incineration) – mixing waste and commercial fuel to meet
5

25,0002022

Hazardous Waste

which they were conceived.

(Metric tons per $ Million Revenue USD) | Detailed Description of Chart on pg. 33

20,0002021

onsemi categorizes our waste diverted from disposal as shown below.

that have become waste are prepared to be used for the same purpose for

Waste Generation Intensity

15,000UNITS

Non-Hazardous (NH)Hazardous (H)18,515

Non-Hazardous (NH)

Non-hazardous waste – other recovery options

83

0

25,897

5,000

0

100

2023

30,6721

NH: 14,354

Non-hazardous waste – preparation for reuse

42

Total Waste Generated (Metric tons) | Detailed Description of Chart on pg. 33

NH: 20,680

H: 4,161

18,102

Non-Hazardous Waste

Non-Hazardous Waste Diversion Rate (Percentage) | Detailed Description of Chart on pg. 33

H: 9,992

2021

21,589

NH: 14,502

WASTE DIVERTED FROM DISPOSAL

impacts on human and environmental health.

2023

H: 3,600

100

37

0

these solutions tend to reduce waste management costs and avoid negative2022

NH: 17,933

68

Hazardous Waste Diversion Rate (Percentage) | Detailed Description of Chart on pg. 33

We strive to maximize waste diverted from disposal through the reduction

H: 3,656

70

2021

amount of waste directed to disposal through waste reduction and diversion.

2023

the specifications needed for other use.

TOTAL

Protecting Our Planet and Environment |18

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Waste Directed to Disposal

WASTE DIRECTED TO DISPOSAL

onsemi categorizes our waste directed to disposal as shown below.

UNITS

2021

2022

2023

Non-hazardous waste – incineration

Metric tons

NR

100

808

(energy recovery)

Percentage

NR

1

4

Non-hazardous waste – incineration

Metric tons

NR

41

263

(without energy recovery)

Percentage

NR

0

1

Metric tons

NR

911

1,629

Percentage

NR

5

8

Non-hazardous waste – other

Metric tons

NR

1,369

47

disposal operations

Percentage

NR

8

0

Metric tons

2,970

2,421

2,747

Percentage

17

14

13

• Incineration (with and without energy recovery) – controlled burning ofwaste at high temperatures.
• Landfill – depositing solid waste at, below or above ground level atengineered disposal sites.

Hazardous waste – incineration

Metric tons

NR

457

363

(energy recovery)

Percentage

NR

5

3

Hazardous waste – incineration

Metric tons

NR

475

181

(without energy recovery)

Percentage

NR

5

2

Metric tons

NR

828

1,083

Percentage

NR

9

11

Hazardous waste – other disposal

Metric tons

NR

3,614

4,709

operations

Percentage

NR

40

47

Metric tons

5,682

5,374

6,3361

Percentage

58

60

63

Non-hazardous waste – landfilling• Other disposal operations – operations without recovery of materials sent
to disposal.

TOTAL
Total Waste Directed to Disposal (Metric tons) | Detailed Description of Chart on pg. 33

2022

H: 5,3742021

H: 5,6820

NH: 2,421 7,795
NH: 2,970 8,652

5,000
Hazardous (H)10,00015,00020,000Committing to a Responsible Business

Appendix

Hazardous Waste

NH: 2,747 9,083

H: 6,336

Impacting Our Community Through Giving

Non-Hazardous Waste

Hazardous and Non-Hazardous:

2023

Ensuring Workplace Social Responsibility

25,000

Hazardous waste – landfilling

Non-Hazardous (NH)TOTAL

The increase in our total non-hazardous waste, when compared to 2022, is due to the acquisition1of our EFK site.

2023 Sustainability Report Executive Summary		Protecting Our Planet and Environment |19

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Environmental Health and Safety
onsemi ensures the protection of its people andcompliance with environmental regulations throughour Environmental, Health and Safety (EHS) practices,which are upheld through EHS Policy and Statement.

EHS Policy
onsemi protects people and minimizes ourenvironmental impact through efforts to prevent
injury, illness and pollution.

EHS Statement

The onsemi EHS Management System is audited andcertified by a third party to ISO 14001 Environmental
Management System and ISO 45001 Health and
Safety Management System standards.
• 90 percent of onsemi manufacturing sites are
certified to ISO 14001 (25,138 employees).
• 85 percent of onsemi manufacturing sites are
certified to ISO 45001 (25,004 employees).

onsemi consults with workers and encourages
participation to identify hazards and reduce health andsafety risks. We are committed to compliance with alllegal and other requirements wherever we operate.
We set EHS objectives and strive for continuous
improvement. The EHS Policy and Statement are

Elements of the onsemi global EHS Management System include the following:available on the onsemi website.

EHS Management System

PLAN

The onsemi global EHS Management System isIdentify Your
Problems

founded on the concept of Plan-Do-Check-Act

DO(PDCA). The PDCA model provides a framework
for the following:• Plan: To establish objectives and to deliver results• Do: Implement EHS processes• Check: Monitor and measure performanceand progress to objectives• Act: Take actions to continually improve
the EHS management system

Test Potential
Solutions

ACT

Implement theBest Solution

EHS Management System Manual,

EHS Training

EHS Incident Reporting and Investigation

including the onsemi EHS Policy andProcedure to ensure EHS training is

Procedure that outlines how toStatement Manual and policy that establish

satisfied, including maintaining a matrix

communicate incidents, investigate andthe foundation of our EHS Managementof required training courses and what

identify root cause(s) and corrective

System and adherence to ISO 14001 andemployees are in scope to take training.

action(s) to prevent reoccurrence.

ISO 45001 for manufacturing operations.
EHS Audit

EHS Management of Change

EHS Risk Assessment

Procedure to globalize the way EHS system

Procedure to ensure temporary, permanent

Procedure to identify risks andaudits are planned, performed, reported,or emergency changes, including changes

opportunities that need to be addressedfollowed up and completed by auditors.

to people critical to EHS compliance andto ensure the EHS Management System

CHECK

Study Results

can achieve its intended outcomes.

performance, are reviewed by EHS priorContractor EHS Activities

to implementation or assignment.

Establishes contractor EHS-related
EHS Legal and Other

activities, outlining procedures including

EHS Compliance Assurance

Procedure to ensure compliance

EHS communication, risk/hazard

Provides guidance to assure complianceobligations and other requirements are

identification and incident investigation.

with legal and other requirements.

identified, communicated and satisfied.

2023 Sustainability Report Executive Summary		Protecting Our Planet and Environment |20

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

EHS Data
We track and report various environmental health and safety metrics to understand thesuccess and trends of our program over time.
Although there is minor variability in 2023 and 2022 incident rates of injury and illness,onsemi's Total Recordable Incident Rate (TRIR) remains well below the semiconductor
industry average of 1.1, as reported by the US Bureau of Labor Statistics.

DISCLOSURE

UNITS

2021

2022

2023

Fatalities, employees

0

0

0

Fatalities, non-employees

0

0

0

2

0

0

0

0

0

Recordable¹ work-related injuries, employees

43

40

53

Recordable¹ work-related injuries, non-employees

3

2

0

Injury Disclosures

High-consequence work-related injuries, employees
High-consequence work-related injuries, non-employees

Incidents

Represents "recordable” injuries or illnesses, as defined by the Occupational Safety and Health Administration.

1

DISCLOSURE

2022

2023

CALCULATION

Rate Calculations1(Number of lost time injuries in the
Lost time incident rate (LTIR)

0.31

2

0.47

reporting period x 1,000,000)
Total # hours worked in the reporting period

Lost time incident severity rate
Total recordable incident rate
(TRIR), employees
Total recordable incident rate
(TRIR), non-employees

0.009

0.015

0.108

0.170

0.005

NR

(Number of days lost due to injuries x 1,000)
Total # hours worked in the reporting period(Number of incidents x 200,000)
Total # hours worked in the reporting period(Number of incidents x 200,000)
Total # hours worked in the reporting period

Based on 62,046,000 hours worked in 2023.

122023 Sustainability Report Executive Summary		Our 2022 LTIR was recalculated to align with the formula used by EcoVadis.

Protecting Our Planet and Environment |21

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Diversity, Equity and Inclusion (DEI)
At onsemi, we have a long-standing commitment to DEI. We recognize that weare strongest when drawing on the diverse experiences, knowledge, culturesand backgrounds of all employees around the world. We are proud to celebrate
differences, promote equity and maintain an inclusive workplace for our employees.
Our DEI efforts enable and empower us to encourage the creativity and innovationnecessary to maintain a competitive advantage in the global marketplace.

Workforce Diversity
Building a diverse talent pipeline is critical to keeping our organization well positioned to handle
the changing demands of our industry. We understand this means more than just attracting adiverse workforce. To develop and retain our diverse workforce, we also train leadership on how
to best mitigate unconscious bias during the interview and hiring process, as well as provide
general unconscious bias and DEI learning for employees around the globe.

We consistently strive toward a more diverse, equitable and inclusive workplace,which benefits our organization and allows us to successfully meet the changing
needs of our customers, suppliers, employees and shareholders worldwide.

DEI Mission
To build a DEI culture across the organization
through focused efforts across workforce
diversity, workflow equity, workplace
inclusion and community partnerships.

STEM Organizations

Diverse Hiring Programs

We participate in multiple diversity

We engage with multiple organizations to

conferences and career fairs across North

attract a more diverse workforce. Some ofAmerica throughout the year, including (butour partner organizations include:

not limited to) Society of Women Engineers.
We also partner with organizations in Asia,
including Women in Science, Engineering andTechnology (WISET) foundation.
Succession Management

Universities (HBCUs) to provide
employment opportunities.
• EMEA, Embedded partnerships with

Succession management aligns with thelocal universities: onsemi consults local

company’s business priorities and future

universities on curriculums to prepare

growth strategy. It is an integrated process

graduates for the semiconductor industry.

designed to identify and develop employees
for growth into key roles within the company.

DEI Vision• Historically Black Colleges and• India, onsemi alumni connections: Current
onsemi employees partner with theiralma mater to organize pre-placement

To have a culture where diversity, equity andtalks and showcase onsemi technologies

inclusion are embedded in everything we do.

to attract top engineering school talent.

2023 Sustainability Report Executive Summary			Ensuring Workplace Social Responsibility |22

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Workforce Equity
At onsemi, we understand that it is imperative to infuse equity as the integrator for attracting
and retaining a diverse workforce and developing an inclusive workplace. Equity efforts
create access for our employees to have the same opportunities to develop skills consistent
with our business objectives and core values of Purpose, Innovation and Excellence.

Employee Resource Groups
Our Employee Resource Groups (ERGs) help facilitate equity in theworkplace. These employee-led groups evolve through organic
formation and are business-facing resources that support ourrecruitment, retention, development and advancement objectives.
WE

Black Employee Network (BEN)

WE, established in 2014, focuses on empowering and supporting

BEN, established in 2019, fosters an environment that is conducive

women to succeed through professional development in business,to the recruitment, retention and career advancement of Blackstrategic and financial acumen.

employees. This group is committed to promoting the company
brand and emerging market penetration in the Black community.

STEM UP
Science, Technology, Engineering

Continuaand Mathematics for Underrepresented

Continua, established in 2020, works to cultivate an inclusive

Populations (STEM UP), established in 2015, strives to develop

workplace where all employees are free and encouraged to be

and retain a diverse workforce, which will positively impact ourthemselves. This group advocates for those who are – and who

company's innovation and performance. This group’s programs

support – LGBTQ+ people in our company, in our families

are focused on retaining employees and developing new talentand in our communities.

in the local area for the underrepresented population.
Veteran and Military Employees (VME)
Cultivate

VME, established in 2020, helps recruit veterans and military

Cultivate, established in 2018, works to unite a group of diverse

members, provides transitional assistance into the civilian

generations who are committed to engaging the workforce andworkforce, develops and retains these employees and increases

enhancing our collaborative company culture. This group is devoted

networking through community outreach.

to understanding all generations in the workplace and connecting
the company with the evolving employee community.

We train leadership on how to best mitigate unconscious
bias during the interview and hiring process, as well as
provide general unconscious bias and DEI learning for
employees around the globe.

2023 Sustainability Report Executive Summary			Ensuring Workplace Social Responsibility |23

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Giving Now Program, Community
Investments and Commercial Initiatives
At onsemi, we are on a mission to shape the future with smart

Since 2016, onsemi has contributed more than $11 million intechnology and green energy. We care about how we work,

grants, disaster relief efforts, employee matching, dollars-

how we impact the environment and how we give back tofor-doers and more. We are proud of our achievements, andthe customers and communities we serve. We invest in our

we are excited for what is next to make the world a smarter,

communities through our Giving Now program, a corporate

greener and happier place.

$575,000
onsemi employees showed their generosity andphilanthropy initiative that reflects our values and vision. We

compassion by donating $575,000 through the Giving Now

believe that the work and giving we do today will make aplatform. onsemi matched an additional $388,000 to moredifference for tomorrow.

12023 GIVING, COMMUNITY INVESTMENTS AND COMMERCIAL INITIATIVES SUMMARY
Giving Priority

Category

AmountPercentage
of Total

Give to Donate

Give to Educate

Give to Help

Charitable
donations1, 4$723,000

27%$723,000$0$0

The Giving Now program is transforming ourplanet and every community we touch with positivechange. We leverage the collective power of ouremployees and partner with various organizations
to create impact in three simple ways:

We have a passion to drive change and2make the world a better place. We build
trust with our stakeholders by enablingthem with technology and supporting our

Community
investments2, 4$1,497,000

56%

$0

$1,360,000

giving initiatives.

$137,000

than 1,720 causes worldwide. That is a 101 percent increase
from 2022!

$2.22 million
in charitable donations to the global community in 2023.

We show our commitment to social impact
Commercial
initiatives3, 4$466,000

17%

Not Applicable

Not Applicable

Not Applicable3

through our Giving Now philanthropic
program, which funds various causes
and projects that align with our goals

TOTALS$2.686 Million$2.220 Million – tied to Giving Now program
initiatives¹“Charitable donations“ refers to one-off or occasional support to good causes in response to the needs and appeals of charitable
and community organizations, requests from employees, etc., and includes matching employee donations.
²“Community investments“ refers to long-term involvement and partnership with community organizations to address social issues,
including through grants.
³“Commercial initiatives” refers to business-related activities in the community that promote the company and its brand, in partnershipand values.

We celebrate our employees’ volunteerism
and generosity by matching their donations
and rewarding their hours of service.

6,457 hours
onsemi employees did not just give money, they also gave
their time and energy. They volunteered for a total of 6,457
hours in 2023, a 257 percent increase from 2022.

with charities and community-based organizations, such as support for universities as well as research and development.
⁴Adapted from guidance tied to the London Benchmarking Group model for documenting types of philanthropic activities at companies.

2023 Sustainability Report Executive Summary			Impacting Our Community Through Giving |24

Table of Contents

Introduction

Corporate GovernanceAll business conducted by employees, managers and officers at
onsemi is under the direction of the chief executive officer (CEO)and the oversight of the company’s Board of Directors. The board
and its standing committees have at least four scheduled meetings

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

BOARD MEMBERGENDERAGE

TENURECOMMITTEESAtsushi Abe

Male

70

13

Audit

Alan Campbell

Male

66

9

Executive (Chair), Audit, Governance andCommitting to a Responsible Business

AppendixQUALIFICATIONS

Sustainability
Susan K. Carter

Female65

4

Audit (Chair), Governance and Sustainability

Thomas L. Deitrich

Male

57

4

Governance and Sustainability

Hassane El-Khoury

Male

44

4

Executive

Bruce E. Kiddoo

Male

63

4

Audit

Christina Lampe-Önnerud

Female

57

1

Audit

Paul A. Mascarenas

Male

62

10

Governance and Sustainability (Chair), Executive,

annually to review and discuss reports by management, as well as
the performance of the company. Our corporate governanceprinciples set forth certain requirements under which the Boardand management operate.

Board of Directors Summary
This summary represents the members of onsemi’s Board of Directors
and committee representation, as of December 31, 2023. All directors
are independent, aside from Hassane El-Khoury, who also serves as
the president and chief executive officer of onsemi. We have a board
member age limit of 75 years of age.

Human Capital and Compensation
The company values diversity at all levels, including at our Board

Gregory L. Waters

Male

63

4

Executive, Human Capital and Compensation

Christine Y. Yan

Female58

6

Human Capital and Compensation (Chair)of Directors. We endeavor to have a Board representing diverse
experiences in areas that are relevant to our global activities. The
Governance and Sustainability Committee considers diversity ofexperience, thought, skills and viewpoints, as well as diversity concepts
such as race, ethnicity and gender identification, as part of the Board’s
self-evaluation process and in its evaluation of potential candidates
to serve on the Board. As of December 31, 2023, 30 percent of

Qualifications Key:

onsemi’s Board of Directors identified as female, which is consistent
with the gender diversity reflected across Fortune 500 companies.

2023 Sustainability Report Executive Summary			

Semiconductor/Technology

Environmental Social
Governance (ESG)

Compliance

Government Relations

Public Company Management

Manufacturing

Mergers andAcquisition

Sustainability/Climate

International

Finance

MarketingInformation Security

Enterprise Risk
Management (ERM)

Committing to a Responsible Business |25

Table of Contents

Introduction

Our Business

Board Evaluation
Our Board believes that having strong governance principles and practices
improves effectiveness and contributes to the creation of stockholder value. To
measure its own operation against such principles and practices and to identify
and act on areas for improvement, each member of the Board and its committees
performs an annual self-evaluation. The Governance and Sustainability (GS)Committee is charged with overseeing the self-evaluations, and in 2023, the GS

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Development of
Self-Assessment Tools

Self-Assessment Launch andProcessing of Results• Input from Board Chair and Chair of• Results sent to Board Chair and are

the GS Committee• Input from Corporate Secretary

Impacting Our Community Through Giving

reviewed by Board Chair and Chair

Committing to a Responsible Business

Appendix

Feedback Incorporated

Board Review• Changes to practices are• Board Chair and Chair of the GS
Committee review results with fullconsidered and implemented,

Board in executive session

as appropriateof the GS Committee• Results inform the Board’s
refreshment, recruitment andCommittee used the following process to conduct the Board’s self-evaluation:

selection process

Committee Details
onsemi’s Board of Directors has established four standing committees:
1. Audit Committee

Board Oversight of ESG

2. Governance and Sustainability (GS) Committee

The GS Committee has the responsibility of overseeing

Following the establishment of our 2022 emissions

4. Executive Committee

ESG matters unless there is a specific matter connectedbaselines, the GS Committee focused its efforts on

to ESG initiatives that is assigned to another committee

overseeing the establishment of an emissions reduction

Each committee is tasked with overseeing various aspects of the companyof the Board.

roadmap toward our targets. As climate-related

3. Human Capital and Compensation (HCC) Committee

and carrying out the responsibilities specified in its respective charter.
To view a copy of the formal written charter pertaining to each standing
committee, please visit the Investor Relations section of our website.
COMMITTEE

Audit
Executive
Governanceand Sustainability
Human Capitaland Compensation

regulations and mandatory ESG reporting requirements
For example, the HCC committee has the responsibility

were introduced, the Audit Committee began to takeof overseeing the company’s policies and strategies

on an increased oversight role that is expected toconcerning human capital, which includes DEI. The

expand in the future concerning ESG disclosures, theHCC committee considers DEI in its broader review

assurance of our sustainability reporting and the qualityof pay equity within the company; however, both theof internal controls and risk management systems.

CHARTER REQUIRED MIN.

IN 2023

Quarterly meetings

12

Meet as needed1

in the management and oversight of DEI. The GS

Quarterly meetings

6

climate and sustainability-related initiatives and other

GS Committee and the HCC Committee play a roleCommittee has also been tasked with oversight ofactions associated with the environment. In turn,

Quarterly meetings

6

the GS Committee will assist the Board in providing
guidance and oversight with respect to strategy, risk
management, capital expenditures, opportunities
and investments in the context of climate change.

Corporate Incentives Related to
Climate and Sustainability
At onsemi, we believe that sustainability is everyone’s
responsibility. It is through our collective contributions
from throughout the company that we can achieve ourambitious net-zero emission goals. Consequently, ourcompany-wide strategic initiatives reflect this belief andtie corporate incentives to advancing our climate andsustainability objectives.

2023 Sustainability Report Executive Summary			Committing to a Responsible Business |26

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Fair Treatment
onsemi is committed to preserving and promoting thefundamental rights of others and ensuring everyone isawarded fair treatment. Our company Code of BusinessConduct, as well as the RBA Code, covers human rights
in several areas, ensuring we have a comprehensive
stance on human rights and fair treatment that applies
to all onsemi employees, joint ventures, major suppliers,
select service providers, contractors and products andservices. We have several sites with collective bargaining
agreements, and we respect our employees’ freedom of
association with these groups.
To ensure our approaches are regularly updated, we
engage all relevant groups – including, but not limited
to, ethics and compliance, environmental, health andsafety, HR, legal, global security and supply chain in ourreview and due diligence process. Every individual and

RBA Member

Human Rights

The RBA is the world’s largest industry coalition dedicated

Our formalized Human Rights Policy demonstrates ourPrevention of Child Labor

commitment to preserving, protecting and promoting the

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

fundamental rights of others as reflected in the RBA Codeour global minimum employment age policy, which is reiteratedof Conduct, Universal Declaration of Human Rights, Unitedin our Human Rights Policy. The purpose of this policy is to

Nations (UN) Guiding Principles on Business and Human Rights

define and ensure that sufficient measures and controls are

and UN Global Compact, to which we are a signatory. Ourin place to verify the minimum age of individuals working at

commitment to international human rights standards and local

our company. As a rule, we only employ individuals who arelaws is rooted in our core values and reinforced through ourat least 18 years of age by the first day of employment. The

Code of Business Conduct and other company policies.

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

to corporate social responsibility in global supply chains.
As an RBA member, onsemi is required to commit to andbe held accountable to a common Code of Conduct
and utilize a range of RBA training and assessment
tools to support continual improvement in the social,environmental and ethical responsibility of our supply
chain. The RBA regularly engages in dialogue andcollaborations with workers, governments, civil society,investors and academia to gather the necessary rangeof perspectives and expertise to support and drive
its members toward achieving the RBA mission andthe values of a responsible global electronics supply
chain. onsemi has been a member since 2009, and we
reaffirm our commitment to the alliance annually.

department is responsible for understanding and upholding
the fundamental rights of others.

Validated Assessment Program (VAP)of the issues identified in a VAP audit.

One of the most fundamental RBA programs is the

In 2023, 6 out of 10 onsemi sites were recognized

VAP. It is the leading standard for onsite complianceverification and effective, shareable audits.
About half of our manufacturing sites are scheduled for
VAP audits through RBA annually. We conduct internal
RBA audits annually to ensure those sites not slated for
an official RBA VAP audit remain compliant to RBA Codestandards. In 2023, 10 out of 18 onsemi manufacturing sites
were subject to internal RBA audits and 12 manufacturing

for their efforts in supporting our global commitment
to being a model corporate citizen. The sites
were awarded certificates from the RBA.
During 2023, VAP external audits wereconducted by independent third parties and
we received the following recognitions:•

Major and Minor findings closed): Mountain Top

sites participated in initial or closing RBA VAP audits.
The primary value of an onsite compliance audit is the•correction of identified issues. The RBA recognizes
manufacturing sites that show a commitment tocorporate responsibility through verified resolution

2023 Sustainability Report Executive Summary			

Platinum (minimum VAP score of 200 and all Priority,•for employment is 16 years old. To confirm that candidates forPrevention of Slavery and Human Trafficking

employment meet the minimum age requirement, members of

To prevent slavery and human trafficking, we implemented

our HR department perform due diligence to make sure we are

our Slavery and Human Trafficking Policy Statement, which

complying with federal, state, regional and local requirements.

memorializes our zero-tolerance stance toward human rights

The global minimum age policy also describes the process to beviolations and outlines the steps we take to ensure awareness offollowed and protection afforded to discovered child laborers.

any such violations in our supply chain or in our business. We have

We apply the same minimum age requirement for employment at

implemented policies, procedures and management systems toour supplier companies and labor agencies. We work to ensure

ensure that all work at our company is voluntary and that workers

that our suppliers have the necessary policies, procedures,are legally entitled to leave the company without penalty. onsemi

measures and controls in place through risk assessments and onsite

also ensures that workers’ government-issued identification,verification to avoid incidents of child labor within our supply chain.

original work permits and original personal documentation are
not withheld or otherwise destroyed, concealed or confiscatedby our company or its labor agents. We train our HR staff andlabor agents on the company’s practices related to anti-humantrafficking and conduct onsite verification to ensure compliance.
Incidents of slavery and human trafficking are also verified
in our supply chain using risk assessments and site visits.
Our employees and other stakeholders are encouraged to reportany concerns they may have on human trafficking throughour ethics helpline or by directly contacting the National

1-844-888-FREE

Human Trafficking Hotline (to speak with a hotline advocate)is our global trafficking hotline where

Gold (minimum VAP score of 180 and all Priority andat 1-888-373-7888 (outside the United States at +1 202-7450190), the Global Human Trafficking Hotline at 1-844-888-

employees and other stakeholders are

Major findings closed): Bucheon
Silver (minimum VAP score of 160 and all Priority
findings closed): Tarlac, Suzhou, Cebu, Carmona

3733 (FREE), or texting “HELP” to 233733 (BEFREE) (outsideencouraged to report any concerns.

the United States text “BEFREE” to +1 202-657-4006).

Committing to a Responsible Business |27

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Supply Chain
We are committed to ensuring the highest standards of

Our Supplierssocial responsibility where we live and work. We require

Our supply chain has a multifaceted supply structure ofthat our suppliers provide safe working conditions, treat
workers with dignity and respect, prohibit human trafficking
and slavery (including the procurement of commercial
sex acts and the use of forced or child labor) and promote
ethical behavior. We also require that our suppliers use
environmentally responsible manufacturing processes andfollow principles like those in our Code of Business Conduct.
As outlined in our Supplier Handbook, the supplier must
conform to all environmental and other applicable laws
and regulations, behave ethically, comply with all social
responsibilities and conflict mineral requirements that are
required by onsemi’s commitment to social complianceand provide any requested certifications and cascade all

direct materials suppliers, foundry and subcontractor
providers, indirect material suppliers and professional
service providers deployed across a global sourcing
and procurement network. In 2023, onsemi worked
with 9,600 suppliers and service providers globally, of
which approximately 7,000 were production-related.

The following graphic shows the percentage of our 2023
spent on suppliers local to the site’s region. In 2022 and 2021,

Management Approachprocurement.

management system requirements. We continually develop
business partnerships with selected key suppliers and ensurethat all purchased materials used in product manufacturingsatisfy current governmental, environmental and safety
criteria applicable to the country of manufacture and sale.

suppliers and service
providers globally.

procurement budgets, broken down by region, that was
we tracked this information only at the manufacturing level.

chain that is certified to IATF-16949 and ISO 9001 quality

9,600

When possible, we prioritize purchasing from local suppliers.

applicable requirements through their supply chain.

We operate a flexible, reliable and responsive supply

In 2023 onsemi worked with

Supplier Diversity

2023 is the first year that this data represents total company

Additionally, in the United States, we track suppliers that are
owned by minority populations. During our supplier onboarding
process, suppliers are asked to disclose whether they belong

DISCLOSURE

to a minority group as defined in the Spend by Minority Group

Spend on Local Suppliers, by Regiontable below. We then track our annual spend toward theseAsia

suppliers against the total U.S. spend.

EMEA

Our transportation packaging meets electrostatic discharge
requirements and appropriate methods of packing areNorth America

incorporated into our processes to prevent physical damage.

onsemi TOTAL

Through our sales and operations planning process, we work
directly with our business units and sales teams to aligncapacity and demand to support customer requirements.

UNITS

Percentage

2021

20221

DISCLOSURE

UNITS

2021

2022

2023

Spend by Minority Group, in the U.S.

90.5

87.9

85.3

Small Business

4.32

4.05

6.18

83.7

76.3

33.2

Woman-Owned

0.17

0.15

0.21

90.3

86.9

78.2

Minority-Owned

0.04

0.05

0.02

88.2

83.7

65.6

Small Disadvantaged

0.04

0.02

0.07

4.57

4.27

6.48

Represents data from manufacturing procurement only.

1

20231

Percentage

onsemi TOTAL
U.S. SPEND ON
MINORITY-OWNEDBUSINESSES

2023 Sustainability Report Executive Summary			Committing to a Responsible Business |28

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Responsible Minerals Sourcing

Managing Risk in the Supply Chain
We understand that supply chain risks have theonsemi identifies and monitors suppliers that fall

Responsible minerals sourcing has progressed beyond tantalum,

When we identify any non-conformant or high-risk smelters or

potential to cause disruptions to our manufacturingin the top 80 percent of annual production-relatedtin, tungsten and gold (3TG) to address global human rights

refiners sourced from CAHRAs or when there are global sanctions

process, alter our ability to deliver our products tospending, as required by being a full member of RBA.

violations, especially with the emerging focus on forced labor.

for certain smelters or refiners, we review the circumstances andour customers and create a ripple effect impacting all

These suppliers are required to complete RBA’s online

As an active member of the RBA and Responsible Minerals

conduct due diligence with our key suppliers. Customers often

stakeholders. Our procurement team currently uses

self-assessment questionnaire (SAQ) annually. The

Initiative (RMI), onsemi continually engages in reasonable andrequest updated CMRTs or EMRTs when there are changes in theseveral models to manage risk in our supply chain.

SAQ evaluates suppliers on a host of different risk

responsible due diligence with its key suppliers, consistent with

reporting templates. In 2023, onsemi responded to and completed

parameters, including labor, environment, health andthe Organization for Economic Co-operation and Development

approximately 1,841 conflict minerals customer requests,

For new supplier selection, we consider the financial

safety and ethics. Suppliers that fall within the identified(OECD) Due Diligence Guidance for Responsible Supply Chains ofwhich was 14 percent higher compared to the previous year.

strength, quality track record, geography, social

threshold must share and release the SAQ to onsemi

Minerals from Conflict-Affected and High-Risk Areas (CAHRAs).

compliance and technology of each supplier. Oncethrough the RBA online platform after completion. Our

onsemi has included cobalt in the Responsible Minerals Sourcing

Members of onsemi’s conflict minerals team actively participate

selected, a new supplier is required to adhere to theteams work with suppliers flagged as high risk throughPolicy posted on our website. To identify and mitigate conflictin regular RMI annual conferences and monthly plenary calls, as

onsemi Supplier Code of Conduct, which is aligned

RBA’s SAQ process to develop corrective action plansmineral risk in our supply chain, we require our key suppliers

well as workgroups to obtain updated information on smelters, RMI

with our Supplier Handbook. We conduct bi-annualand ensure these risk areas are addressed accordingly.

to engage in due diligence by completing the RMI’s Conflict

programs and emerging global responsible sourcing regulations.

RBA conformance certification and engage with our

Minerals Reporting Template (CMRT) for 3TG and Extended

onsemi also joins peer companies in various supply chain and local

suppliers in regular cycles by clearly communicating

Minerals Reporting Template (EMRT) for mica and cobalt.

work group discussions on relevant topics, including due diligence,

our expectations, deploying risk assessments,

sourcing regulations and more. Our responsible sourcing records

conducting business reviews, launching verification

Using CMRT for our annual campaign, onsemi sets the target

can be found online, including the latest filing of the SEC Form SD,

audits and addressing any non-conformance.

of using 100 percent conformant smelters and refiners from the

Responsible Minerals Sourcing Policy, as well as latest company-

Responsible Minerals Assurance Process (RMAP) assessment.

level CMRT and EMRT.

We achieved this target for each of the past two years.

2023 Sustainability Report Executive Summary			

REPORTING YEARCONFORMANTACTIVENON-CONFORMANTNOT ELIGIBLE

TOTAL

2021

98%

1.0%

1%

0%

100%

2022

100%

0%

0%

0%

100%

2023

100%

0%

0%

0%

100%

Committing to a Responsible Business |29

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Information Protection

Information Security and Risk

We work around the clock to protect our company,

The secure processing, maintenance and transmission

technology and intellectual property from potentialof sensitive data, including confidential and othercybersecurity threats and vulnerabilities. We takeproprietary information about our business andprivacy and cybersecurity seriously and strive to identify

our employees, customers, suppliers and businessand eliminate potential threats to our IT infrastructure,

partners, is important to our operations and businessproprietary technologies and confidential information.

strategy. As a result, cybersecurity and data protection
are key components of our long-term strategy.

Privacyonsemi has developed a global data privacy program
designed to comply with applicable laws aroundthe world and to protect the personally identifiable
information of onsemi employees, customers and others
who have entrusted us with their personal data.
We also have a Data Privacy Committee comprising global
leaders from key functions such as HR, procurement,
legal and information security who provide strategic
guidance and oversight to support our data privacy andcompliance efforts. In addition, our Chief Privacy Officer
has appointed employees of various roles and grade levels
throughout the company as “data privacy champions” whoadvocate the importance of our data privacy program,
maintain awareness of key data privacy laws and help
reinforce best practices around data privacy matters.
All onsemi employees receive basic data privacy training
annually through the Code of Business Conduct andInformation Security trainings; however, employeesin specific functions that handle or otherwise haveaccess to personal identifiable information must further
complete an additional, in-depth data privacy course
annually. Ad hoc privacy communications and training
are also delivered to the organization as needed.
For more information, please visit our Privacy Policy.

GovernanceConsistent with our overall risk management governancestructure, management is responsible for the day-to-day
management of cybersecurity risk while our Board and its
Audit Committee play an active, ongoing oversight role.
Our Board has delegated to its Audit Committee specific,
first-line responsibility for overseeing major cybersecurity
risk exposures in addition to our broader ERM program.
Management (including our Chief Information Officer (CIO)
and our Chief Information Security Officer (CISO)) reports
at least quarterly to the Audit Committee on information
security and data privacy and protection. The Audit
Committee Chair reports to the full Board on these risk
discussions as appropriate. At least annually, the Board
meets with members of our ERM team to review and discuss
our ERM program, including areas of material risk and how
these risks, which may include cybersecurity risk, are being
managed and reported to the Board and its committees.
Our Enterprise Cybersecurity Services (ECS) team iscomposed of several support teams that address andrespond to cyber risk, including cyber risks related tosecurity architecture and engineering, identity and accessmanagement and security operations. The ECS teamoversees compliance with our cybersecurity framework
within the organization and facilitates cybersecurity risk
management activities throughout the organization. The

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

ECS team also assists with the review and approval ofpolicies, completes benchmarking against applicablestandards, maintains a cyber risk registrar and oversees the
security awareness program.
Risk Management and Strategy
We use various processes to inform our assessment,
identification and management of risk from cybersecurity
threats.
Our information security management system is currentlyaligned with the National Institute of Standards andTechnology (NIST) Cybersecurity Framework (CSF). CSF
provides a set of control objectives that align with several
other standard information security frameworks, including
ISO 27001. We employ additional standards and frameworks
as we deem necessary to assist us in monitoring compliancewith regulatory, industry and evolving data privacy
requirements. In addition to periodic in-depth evaluations of
our systems and processes, we monitor our IT systems andprocesses on an ongoing basis with the goal of identifying
and remediating real and potential threats as they arise. We
adjust our systems, procedures and policies regularly as wedeem necessary in response to identified threats and risks.
We sponsor a multi-faceted security awareness program that
includes regular, mandatory trainings for our personnel ondata protection and malware detection, policy and processawareness, periodic phishing simulations and other kinds ofpreparedness testing.
As of December 31, 2023, we have not identified any risks
from cybersecurity threats (including any previous
cybersecurity incidents) that have materially affected theCompany, our business strategy, our results of operations or
our financial condition.

Management, including our Chief Information
Officer (CIO) and our Chief Information Security
Officer (CISO), reports at least quarterly to the
Audit Committee on information security anddata privacy and protection.

2023 Sustainability Report Executive Summary			Committing to a Responsible Business |30

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Climate Transition Plan
The elements of our Climate Transition Plan are outlined by CDP’s definition of a credible climatetransition plan. The listed elements are key for our business to thrive in a 1.5˚C world.
TRANSITION PLAN
ELEMENTDETAILS

REFERENCE

TRANSITION PLAN
ELEMENTDETAILS

REFERENCE

Goverance

Board-level oversight

See the Corporate Governance section on page 63 of our 2023

Policy Engagement

Alignment of public policy

See the Public Policy section on page 76 of our 2023

Sustainability Report, or on page 25 within this document.

engagement with climate

Sustainability Report.

Board expertise on climate-

See the Corporate Governance section on page 63 of our 2023

ambition and strategy

related issues

Sustainability Report, or on page 25 within this document.

Risks &

Process for identifying climate-

See the TCFD section on page 90 (Appendix) of our 2023

Executive management

See the TCFD section on page 90 (Appendix) of our 2023

Opportunities

related risks and opportunities

Sustainability Report.

accountability and feedback

Sustainability Report.

Climate related risks – risks,

See the TCFD section on page 90 (Appendix) of our 2023

potential financial impact andSustainability Report.

mechanisms

Strategy

Executive incentives linked to

See the Corporate Governance section on page 63 of our 2023

response strategy

climate performance indicators

Sustainability Report, or on page 25 within this document.

Climate-related opportunities –See the TCFD section on page 90 (Appendix) of our 2023

Existence of a “1.5C world”

See the Net Zero Goal section on page 16 of our 2023

opportunities, potential financial

Sustainability Report.

aligned transition plan within

Sustainability Report, or on page 6 within this document.

business strategy andimpact and response strategy
Targets

shareholder feedback
Link between identified and

See the TCFD section on page 90 (Appendix) of our 2023

potential climate-related risks,

Sustainability Report.

Sustainability Report, or on page 6 within this document.

Other climate-related targets

See the Net Zero Goal section on page 16 of our 2023
See the Net Zero Goal section on page 16 of our 2023
Sustainability Report, or on page 6 within this document.

See the Enterprise Risk Management and Business Continuity
section on page 65 of our 2023 Sustainability Report.

Financial Planning

absolute and intensity

Net zero targets

strategy
Details of scenario analysis

See the Net Zero Goal section on page 16 of our 2023

Sustainability Report, or on page 6 within this document.

opportunities and company
Scenario Analysis

Emission reduction targets –Scope 1, 2 & 3

Progress toward respective

See Decarbonization Progress Report in Net Zero Goal section

Accounting, withtargets of Scope 1, 2 and 3

on page 17 of our 2023 Sustainability Report, or on page 7

Verification

emissions

within this document.

Financial planning details

See the TCFD section on page 90 (Appendix) of our 2023

associated with a 1.5˚C world

Sustainability Report.

Comprehensive and third-party

See the Net Zero Goal section on page 16 of our 2023

Low carbon products or

See the Product Stewardship section on page 21 of our 2023

verified emissions accounting

Sustainability Report, or on page 6 within this document.

services

Sustainability Report, or on page 10 within this document.

Value Chain

Low carbon initiatives – direct

See the Annual Inventory of Energy Consumption andEngagement

operations

Emissions section on page 25 of our 2023 Sustainability& Low-Carbon
Initiatives

Report, or on page 11 within this document.
Value chain engagement

See the Third Party Assurance Statement on page 110(Appendix) of our 2023 Sustainability Report, or on page 34
within this document.

See the Annual Inventory of Energy Consumption andEmissions section on page 25 of our 2023 Sustainability
Report, or on page 11 within this document.

2023 Sustainability Report Executive Summary			

Appendix |31

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Detailed Descriptions of Charts
Revenue/Triple-Bottom-Line Revenue on pg. 5

Decarbonization Progress: Scopes 1 and 2 on pg. 7

Energy Intensity on pg. 11

Total Scope 1 GHG Emissions on pg. 13

Our annual revenue and triple-bottom-line revenue are reported overWe track our decarbonization progress against our 2022 baseline

Our energy intensity is reported over a 3-year period, from 2021

Our total Scope 1 emissions are reported in metric tons of carbon

a 3-year period, from 2021 to 2023. In 2023, our total revenue was

emissions. In 2022, our Scope 1 baseline emissions were 1,014,836

to 2023. Energy intensity is calculated by dividing total energy (indioxide equivalent over a 3-year period, from 2021 to 2023. In$8,253 million, with $6,524 million identified as our triple-bottom-line

metric tons of carbon dioxide equivalent and our Scope 2 baseline

Megawatt-hours) by annual revenue (in million dollars). In 2023, our2023, we emitted a total of 828,620 metric tons of carbon dioxide

revenue. In 2022, our total revenue was $8,326 million, with $6,454

emissions were 713,547 metric tons of carbon dioxide equivalent,energy intensity was 267. In 2022, our energy intensity was 210. In

equivalent. In 2022, we emitted a total of 841,104 metric tons of

million identified as our triple-bottom-line revenue. In 2021, our total

totaling to 1,728,383 for Scopes 1 and 2. In 2023, our Scope 1

2021, our energy intensity was 264.

carbon dioxide equivalent. In 2021, we emitted a total of 2,485,870

revenue was $6,740 million, with $5,011 million identified as our triple-

emissions were 828,620 metric tons of carbon dioxide equivalent andbottom-line revenue.

our Scope 2 emissions were 713,968 metric tons of carbon dioxide

Scope 1 Emissions by Gas Type on pg. 13

equivalent, totaling to 1,569,430 for Scopes 1 and 2.

Our Scope 1 emissions by gas type are reported in metric tons of

Scope 1 Emissions Intensity on pg. 13

Revenue by Market on pg. 5

metric tons of carbon dioxide equivalent.

carbon dioxide equivalent over a 3-year period, from 2021 to 2023.

Our Scope 1 emissions intensity is reported over a 3-year period, from

Our annual revenue is categorized into three end markets: automotive,

Decarbonization Progress: Scope 3 on pg. 7

In 2023, we emitted 83,610 metric tons of carbon dioxide equivalent

2021 to 2023. Scope 1 emissions intensity is calculated by dividing

industrial and other. In 2023, 52 percent of our revenue came from

We track our decarbonization progress against our 2022 baselineof carbon dioxide, 46 metric tons of carbon dioxide equivalent of

total Scope 1 emissions (in metric tons of carbon dioxide equivalent)automotive, 28 percent came from industrial and 20 percent cameemissions. In 2022, our total Scope 3 baseline emissions weremethane, 30,479 metric tons of carbon dioxide equivalent of nitrousby annual revenue (in million dollars). In 2023, our Scope 1 emissions

from other. In 2022, 40 percent of our revenue came from automotive,

2,150,040 metric tons of carbon dioxide equivalent. Category 1oxide, 172,035 metric tons of carbon dioxide equivalent of sulfur

intensity was 100. In 2022, our Scope 1 emissions intensity was 101.

28 percent came from industrial and 32 percent came from other. In

baseline emissions were 1,414,941 metric tons of carbon dioxidehexafluoride, 73,914 metric tons of carbon dioxide equivalent of

In 2021, our Scope 1 emissions intensity was 369.

2021, 34 percent of our revenue came from automotive, 27 percent

equivalent, Category 2 baseline emissions were 102,663 metricnitrogen trifluoride, 38,983 metric tons of carbon dioxide equivalentcame from industrial and 39 percent came from other.

tons of carbon dioxide equivalent, Category 3 baseline emissionsof hydrofluorocarbons, 378,930 metric tons of carbon dioxide

Total Scope 2 GHG Emissions on pg. 14

were 222,296 metric tons of carbon dioxide equivalent, Category

equivalent of perfluorocarbons and 50,624 metric tons of carbon

Our total Scope 2 emissions are reported in metric tons of carbon

Revenue by Sales Channel on pg. 54 baseline emissions were 326,612 metric tons of carbon dioxide

dioxide equivalent of heat transfer fluids. In 2022, we emitted 50,575

dioxide equivalent over a 3-year period, from 2021 to 2023. In

Our annual revenue is categorized into two sales channels: original

equivalent and the remaining “Other” categories summed to 83,528

metric tons of carbon dioxide equivalent of carbon dioxide, 29 metric2023, we emitted a total of 727,464 metric tons of carbon dioxide

equipment manufacturers and distributors. In 2023, 48 percent of

metric tons of carbon dioxide equivalent. In 2023, our total Scope 3

tons of carbon dioxide equivalent of methane, 28,408 metric tons

equivalent. In 2022, we emitted a total of 741,934 metric tons of

our revenue came from original equipment manufacturers and 52

emissions were 1,569,430 metric tons of carbon dioxide equivalent.

of carbon dioxide equivalent of nitrous oxide, 193,063 metric tons ofcarbon dioxide equivalent. In 2021, we emitted a total of 782,790

came from distributors. In 2022, 42 percent of our revenue came from

Category 1 emissions were 1,062,541 metric tons of carbon dioxidecarbon dioxide equivalent of sulfur hexafluoride, 66,106 metric tons of

metric tons of carbon dioxide equivalent.

original equipment manufacturers and 58 came from distributors.

equivalent, Category 2 emissions were 92,083 metric tons of carbon

carbon dioxide equivalent of nitrogen trifluoride, 40,261 metric tons of

In 2021, 36 percent of our revenue came from original equipment

dioxide equivalent, Category 3 emissions were 237,688 metriccarbon dioxide equivalent of hydrofluorocarbons, 444,270 metric tons

Scope 2 Emissions Intensity on pg. 14

manufacturers and 64 came from distributors.

tons of carbon dioxide equivalent, Category 4 emissions wereof carbon dioxide equivalent of perfluorocarbons and 18,393 metric

Our Scope 2 emissions intensity is reported over a 3-year period,

101,087 metric tons of carbon dioxide equivalent and the remaining

tons of carbon dioxide equivalent of heat transfer fluids. In 2021, wefrom 2021 to 2023. Scope 2 emissions intensity is calculated by

Revenue by Technology on pg. 5“Other” categories summed to 76,031 metric tons of carbon dioxide

emitted 17 metric tons of carbon dioxide equivalent of carbon dioxide,

dividing total Scope 2 emissions (in metric tons of carbon dioxide

Our annual revenue is categorized into three product technology

equivalent.

0 metric tons of carbon dioxide equivalent of methane, 29,722 metricequivalent) by annual revenue (in million dollars). In 2023, our Scope

streams: intelligent power, intelligent sensing and other. In 2023, 51

tons of carbon dioxide equivalent of nitrous oxide, 379,787 metric

2 emissions intensity was 88. In 2022, our Scope 2 emissions

percent of our revenue came from intelligent power, 19 percent came

Total Energy Consumption on pg. 11

tons of carbon dioxide equivalent of sulfur hexafluoride, 1,262,444

intensity was 89. In 2021, our Scope 2 emissions intensity was 116.

from intelligent sensing and 30 percent came from other. In 2022, 48

Our total energy consumption in Megawatt-hours is reported over a

metric tons of carbon dioxide equivalent of nitrogen trifluoride, 45,499

percent of our revenue came from intelligent power, 19 percent came

3-year period, from 2021 to 2023. In 2023, we consumed a total of

metric tons of carbon dioxide equivalent of hydrofluorocarbons andfrom intelligent sensing and 33 percent came from other. In 2021, 46

2,206,910 Megawatt-hours of energy. In 2022, we consumed a total

715,545 metric tons of carbon dioxide equivalent of perfluorocarbons.

percent of our revenue came from intelligent power, 16 percent cameof 1,752,282 Megawatt-hours of energy. In 2021, we consumed a total

Heat transfer fluids were not reported in 2021.

from intelligent sensing and 38 percent came from other.

of 1,781,685 Megawatt-hours of energy.

2023 Sustainability Report Executive Summary			

Appendix |32

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Detailed Descriptions of Charts (cont.)

Impacting Our Community Through Giving

Committing to a Responsible Business

Appendix

Links to Disclosures Under Reporting Frameworks

Total Waste Generated on pg. 18

Total Waste Diverted from Disposal on pg. 18

Our total waste generation, both hazardous and non-hazardous

Our total waste, both hazardous and non-hazardous waste, diverted

waste, is reported over a 3-year period, from 2021 to 2023. In 2023,

from disposal is reported over a 3-year period, from 2021 to 2023. In

we generated a total of 30,672 metric tons of waste, with 9,992

2023, we diverted a total of 21,589 metric tons of waste, with 3,656

metric tons being hazardous waste and 20,680 metric tons being non-metric tons being hazardous waste and 17,933 metric tons being non-hazardous waste. In 2022, we generated a total of 25,897 metric tons

hazardous waste, from disposal. In 2022, we diverted a total of 18,102

of waste, with 8,974 metric tons being hazardous waste and 16,923

metric tons of waste, with 3,600 metric tons being hazardous waste

metric tons being non-hazardous waste. In 2021, we generated aand 14,502 metric tons being non-hazardous waste, from disposal.

total of 27,167 metric tons of waste, with 9,842 metric tons being

In 2021, we diverted a total of 18,515 metric tons of waste, with 4,161

hazardous waste and 17,325 metric tons being non-hazardous waste.

metric tons being hazardous waste and 14,354 metric tons being non-

Sustainability Accounting Standards Board (SASB) Framework
Task Force On Climate Related Financial Disclosure (TCFD) Framework
Global Reporting Initiative (GRI) Index

hazardous waste, from disposal.
Waste Generation Intensity on pg. 18
Our waste generation intensity is reported over a 3-year period, fromTotal Waste Directed to Disposal on pg. 19

2021 to 2023. Waste generation intensity is calculated by dividing

Our total waste, both hazardous and non-hazardous waste, directed

total waste generated (in metric tons) by annual revenue (in million

to disposal is reported over a 3-year period, from 2021 to 2023. In

dollars). In 2023, our waste generation intensity was 3.72. In 2022,

2023, we directed a total of 9,083 metric tons of waste, with 6,336

our waste generation intensity was 3.11. In 2021, our waste generation

metric tons being hazardous waste and 2,747 metric tons being non-intensity was 4.03.

hazardous waste, to disposal. In 2022, we directed a total of 7,795
metric tons of waste, with 5,374 metric tons being hazardous waste

Total Waste Diversion Rate on pg. 18

and 2,421 metric tons being non-hazardous waste, to disposal. In

Our total waste diversion rate is reported over a 3-year period, from2021, we directed a total of 8,652 metric tons of waste, with 5,682

2021 to 2023. In 2023, our total waste diversion rate was 70 percent.

metric tons being hazardous waste and 2,970 metric tons being non-In 2022, our total waste diversion rate was 70 percent. In 2021, ourhazardous waste, to disposal.

total waste diversion rate was 68 percent.
Hazardous Waste Diversion Rate on pg. 18
Our hazardous waste diversion rate is reported over a 3-year period,
from 2021 to 2023. In 2023, our hazardous waste diversion rate was
37 percent. In 2022, our hazardous waste diversion rate was 40
percent. In 2021, our hazardous waste diversion rate was 42 percent.
Non-Hazardous Waste Diversion Rate on pg. 18
Our non-hazardous waste diversion rate is reported over a 3-year
period, from 2021 to 2023. In 2023, our non-hazardous waste
diversion rate was 87 percent. In 2022, our non-hazardous waste
diversion rate was 86 percent. In 2021, our non-hazardous waste
diversion rate was 83 percent.

2023 Sustainability Report Executive Summary			

Appendix |33

Table of Contents

Introduction

Our Business

Protecting Our Planet and Environment

Ensuring Workplace Social Responsibility

Impacting Our Community Through Giving

Committing to a Responsible Business

AppendixThird Party Assurance Statement

Page 3

Page 2
VERIFICATION OPINION DECLARATIONGREENHOUSE GAS EMISSIONS
Apex Companies, LLC (Apex) was engaged to conduct an independent verification of the greenhouse gas (GHG)
emissions reported by Semiconductor Components Industries, LLC (SCI d/b/a “onsemi”) for the period stated below.
This verification opinion declaration applies to the related information included within the scope of work described
below.
The determination of the GHG emissions is the sole responsibility of onsemi. onsemi is responsible for the preparationand fair presentation of the GHG emissions statement in accordance with the criteria. Apex’s sole responsibility was toprovide independent verification on the accuracy of the GHG emissions reported, and on the underlying systems andprocesses used to collect, analyze and review the information. Apex is responsible for expressing an opinion on the
GHG emissions statement based on the verification. Verification activities applied in a limited level of verification areless extensive in nature, timing and extent than in a reasonable level of verification.
Boundaries of the reporting company GHG emissions covered by the verification:•

Operational Control•

Worldwide•

Exclusions:oWorld Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD)
Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard (Scope 1 and 2)

Apex is an independent professional services company that specializes in Health, Safety, Social and Environmental
management services including assurance with over 30 years history in providing these services.

•

WRI/WBCSD Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and ReportingStandard (Scope 3)

No member of the verification team has a business relationship with onsemi, its Directors or Managers beyond that
required of this assignment. We conducted this verification independently and to our knowledge there has been noconflict of interest.

Reference Standard:•

Apex has implemented a Code of Ethics across the business to maintain high ethical standards among staff in their
day-to-day business activities.

ISO 14064-3 Second Edition 2019-04: Greenhouse gases -- Part 3: Specification with guidance for theverification and validation of greenhouse gas statements

The verification team has extensive experience in conducting assurance over environmental, social, ethical and healthand safety information, systems and processes, has over 20 years combined experience in this field and an excellent
understanding of Apex’s standard methodology for the verification of greenhouse gas emissions data.

Level of Assurance and Qualifications:•

Limited•This verification used a materiality threshold of ±5% for aggregate errors in sampled data for each of theabove indicators

Attestation:

Evidence-gathering procedures included but were not limited to:

Emissions associated with refrigerant losses in building cooling systems

GHG Emissions Statement:•

Scope 1: 828,620 metric tons of CO2 equivalent•

Scope 2 (Location-Based): 727,464 metric tons of CO2 equivalent•

Scope 3Category 1 – Purchased Goods and Services: 1,062,541 metric tons of CO2 equivalent•Interviews with relevant personnel of onsemi;•

Review of documentary evidence produced by onsemi;•

Review of onsemi data and information systems and methodology for collection, aggregation, analysis andreview of information used to determine GHG emissions; andMegan O’Neil, Lead Verifier
ESG Program Manager

ESG Principal Consultant

Audit of sample of data used by onsemi to determine GHG emissions.

Apex Companies, LLC

Apex Companies, LLC

Atlanta, Georgia

Santa Ana, California•

Verification Opinion:
Based on the process and procedures conducted, there is no evidence that the GHG emissions statement shown
above:oCategory 2 – Capital Goods: 92,083 metric tons of CO2 equivalent•

is not materially correct and is not a fair representation of the GHG emissions data and information; andoCategory 3 – Fuel and Energy Related Activities: 241,675 metric tons of CO2 equivalent•

has not been prepared in accordance with the WRI/WBCSD GHG Protocol Corporate Accounting andReporting Standard (Scope 1 and 2) and WRI/WBCSD Greenhouse Gas Protocol Corporate Value Chain
Accounting and Reporting Standard (Scope 3).

oCategory 4 – Upstream Transportation and Distribution: 101,087 metric tons of CO2 equivalentoCategory 5 – Waste Generated in Operations: 37,707 metric tons of CO2 equivalentoCategory 6 – Business Travel: 9,453 metric tons of CO2 equivalentoCategory 7 – Employee Commute (includes work from home): 17,416 metric tons of CO2
equivalentoCategory 8 – Upstream Leased Assets: 42 metric tons of CO2 equivalentoCategory 10 – Processing of Sold Products: 11,345 metric tons of CO2 equivalentoCategory 12 – End-of-Life Treatment of Sold Products: 68 metric tons of CO2 equivalent

Data and information supporting the Scope 1, Scope 2 and Scope 3 GHG emissions statement were in most cases
estimated rather than historical in nature.
Period covered by GHG emissions verification:••

GHG Verification Methodology:

Types of GHGs: CO2, N2O, CH4, NF3, SF6, HFCs, PFCsoStatement of independence, impartiality, and competence

Criteria against which verification conducted:

January 1, 2023 to December 31, 2023

David Reilly, Technical Reviewer

May 22, 2024
This verification opinion declaration, including the opinion expressed herein, is provided to onsemi and is solely for the benefit ofonsemi in accordance with the terms of our agreement. We consent to the release of this declaration by you to the public or otherorganizations but without accepting or assuming any responsibility or liability on our part to any other party who may have access tothis declaration.

It is our opinion that onsemi has established appropriate systems for the collection, aggregation, and analysis ofquantitative data for determination of these GHG emissions for the stated period and boundaries.

Report Revision History
VERSIONDESCRIPTION OF REVISION AND REASONEFFECTIVE DATE

B

2023 Executive Summary

25 July 2024

Document Initial Release

WATER • ENVIRONMENTAL • HEALTH & SAFETY • COMPLIANCE & ASSURANCE • INFRASTRUCTURE
Apex Companies, LLC • (800) 733-2739 • www.apexcos.com

2023 Sustainability Report Executive Summary			

Appendix |34

2023 Executive Summary
onsemi
Investor Relations and Corporate Development
5701 N. Pima Road
Scottsdale, Arizona 85250
investor@onsemi.com
www.onsemi.com