Energy Efficient Semiconductors

TABLE OF CONTENTS
A Letter from Our President and CEO — Keith Jackson

3

About This Report

5

Engineering A Better Tomorrow
Management Approach
Key Accomplishments
Sustainable Development Goals
How Our Products Make a Difference in the Community

6
7
7
8
9

Our Business
Overview
Worldwide Locations
Financial Strength
Brand
Mergers and Acquisitions
Customers
Mission and Vision
Core Values
Core Values and Corporate Social Responsibility Map
Our CultureEnterprise Risk Management
Business Continuity
Quality and Reliability
Responsible Sourcing
Environmental, Social and Governance (ESG) Recognition

11
11
11
12
13
14
14
15
15
16
17
18
19
20
21
24

Our Governance, Ethics And Compliance
Governance Overview
Board of Directors Summary
Compliance and Ethics Programs
Public Policy and Activities
Privacy

26
26
26
27
32
33

Our People
Overview
Commitment to Diversity and Inclusion
Recruitment and Retention
Network of Champions

35
35
36
40
42

Page 2

Learning and Development
Education Reimbursement
Executive Roundtable Program
Lean Six Sigma
Employee Engagement
Performance Management and Employee Recognition
Employee Benefits
Human Rights
Health and Safety
Health and Wellness

44
45
45
46
46
47
47
48
48
50

Our Planet
Overview
Climate Change
Scope 1 and 2 Emissions
Energy Consumption
Water Management
Waste Management
Reclaim and Recycle

52
52
53
54
55
56
57
58

Our Community
Overview
ON Semiconductor Foundation
Employee Volunteerism
Community Impact

61
61
61
63
64

Appendix
List of Acronyms
Memberships and External Initiatives
Awards and Recognition
Stakeholder Engagement
Material Topics
Aspect Boundaries
People, Planet, Profit Report
Additional Data
2019 GRI Content Index
Contact Us

68
68
69
70
71
73
74
75
76
77
87

Corporate Social Responsibility Reportwww.onsemi.com

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

Reflecting on this past year, the organization hit many milestones including its recognition as one of theWorld’s Most Ethical Companies® for the fifth time as well as advancing our position in the rankings
on Fortune’s Fastest-Growing Companies list. We remained a leader of energy efficient semiconductorsthat help make the world greener, safer and connected, and continued making sustainable investments toimprove our competitive position in our strategic end-markets.
As our company grows, we not only continue our investment in our infrastructure, scale, technology andtalent, but also in our Corporate Social Responsibility (CSR) efforts. We are proud of our award-winning CSR initiatives and remaincommitted to driving our diversity, social and human rights, ethics, and sustainability programs to new levels. Being recognized as one ofBarron’s Most Sustainable Companies and as Newsweek’s America’s Most Responsible Companies, amongst many other industry awards,
is a further testament to the work of our employees in upholding our commitment to CSR, sustainability, ethics and compliance.
Our CSR efforts are deeply rooted in our core values of respect, integrity and initiative, and focus on continually improving how we operate,
whether it be related to our business, our governance and ethics, our people, our environment or our communities. As a full member of the
Responsible Business Alliance (RBA) and signatory of the United Nations (UN) Global Compact, we adhere to an industry code of conduct(RBA Code of Conduct) and international principles, which promote environmentally responsible and ethical conduct. It is important to ourorganization that we do our part as individuals to enhance our global community and engineer a better tomorrow through the actions wetake today.
In 2019, we took our corporate giving and employee volunteer programs to the next level with the launch of the ON Semiconductor
Foundation, which functions as a 501(c)(3) nonprofit organization. The Foundation aligns with our company’s purpose, brand and culture,and focuses on extending the impact of our giving programs in the communities where employees work and where we do business.
Since inception of the global corporate giving program in 2016, almost $5 million USD have been funded through the program in grants,
employee matching/non-matching donations, and dollars-for-doers in the areas of STEAM (Science, Technology, Engineering, Arts andMathematics) education, health, disaster relief, environment and human services.
Without our planet, none of our efforts would mean anything, which is why ON Semiconductor is committed to a greener world by keeping
sustainability at the forefront of our operations. We have achieved marked success within our many conservation programs, all of which arevital to the success of our semiconductor device manufacturing business. We continually invest in engineering and administrative controls
to prevent environmental pollution in the form of waste disposal, air emissions and industrial wastewater emissions.

ON Semiconductor

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Energy Efficient Semiconductors

Some of our most notable sustainability achievements in 2019 include:

9,341

8 tons14,958,208 kg

910,000 kg

metric tons of CO2
emissions reduced through 35 projects in
4 countriesof recycled hazardous andnon-hazardous waste from ourmanufacturing and non-manufacturing
sites globallyof pollution in Phoenix,
Arizona alone by employees
using alternate modes of transportationof scrap materials and 1,376 kgof precious metals processed,
sorted and sold from our worldwide
manufacturing facilities, recouping morethan $22 M/USD$10.8 M/USD

in sustainability projects
focusing on energy
conservation, water conservation,
chemical waste reduction, material
optimization and recycling at our global
manufacturing sites

In 2020, we faced an unprecedented global situation with the COVID‑19 pandemic. As a global company, we encountered many challenges
and as we progress through the remainder of the year and into next, we will continue to work through the recovery process and aftermathof the situation. As we overcome this pandemic together, we especially realize the importance of our core values during this time thathave remained engrained in everything we do and keep us all connected. Despite the challenges and unknowns associated with thiscircumstance, we are committed to keeping our teams safe and healthy, giving back to the communities in which we live and work, andoperating with a culture of ethics at the forefront.
Lastly, we strive toward a more diverse workplace, which benefits our company and enables us to successfully meet the needs of our global
stakeholders – customers, suppliers, employees and shareholders. Our employees are our biggest asset and we believe that recognizing
diversity of thought, backgrounds, experience, culture and knowledge are key strengths and enable our organization to reach its fullpotential. The company’s vision, values and culture afford opportunities for everyone to make a difference in building a leading global
business. All of our 35,000 employees are committed to supporting our company’s ethical framework and helping drive business excellence
through operational efficiencies. We are excited for our company’s growth acceleration within the semiconductor industry for years to come,while remaining committed to operating a responsible company.

Regards,
Keith Jackson
President and CEO

Page 4

Corporate Social Responsibility Reportwww.onsemi.com

ABOUT THIS REPORT[GRI: 102-46] [GRI: 102-54] [GRI: 102-56]

Report Overview
This report was created with the intention of transparently communicating our efforts in social responsibility with our stakeholders. Topics
in this report include our business profile, responsible sourcing, governance, ethics and compliance, diversity and inclusion, learning anddevelopment, environmental sustainability, and community involvement. This year marks our seventh Corporate Social Responsibility (CSR)
Report, which we publish on an annual basis. We did not seek independent external assurance for content in this report, but all informationis reviewed internally.

Reporting Standards
Our 2019 CSR report was prepared in accordance with the Global Reporting Initiative (GRI) Standards: comprehensive option. The GRI
content index can be found in the back of this report, as well as a standalone PDF here.

Reporting Period
Data presented in this report covers the 2019 calendar/fiscal year (Jan. 1 – Dec. 31, 2019) and significant milestones highlighted which
occurred in early 2020. As for quantitative performance, this report includes year-over-year data to allow for identification of the trends.

Scope of Report
The scope of this report includes our worldwide subsidiaries
and joint ventures for which we have management
control. Environmental data covers leased
and owned internal manufacturing sites,
which account for a majority of ourenvironmental footprint worldwide.
We value feedback on our activities
and performance from all of our
stakeholders. If you would like toshare your opinions, please contact
ON Semiconductor’s CSR team atsocial.responsibility@onsemi.com.
This report is available as a PDF on our
website, along with reports from previous
years. Please note that printed copies areavailable upon request.

Special Thanks
We would like to thank all the departments that helped the CSR team create our annual CSR report, including members from our marketingand communications, ethics, environmental health and safety, finance, global supply chain, human resources, legal, business units andquality departments.
ON Semiconductor

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Energy Efficient Semiconductors

ENGINEERING A BETTER TOMORROW[GRI: 102-16] [GRI: 102-18] [GRI: 205-1] [GRI: 412-1]

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

Supplier
Due Diligence

RBA Initiatives
and Compliance

UN Global
ImpactCSR Audits
andAssessments

CSR
Reporting

Sustainability

ON Semiconductor
Foundation

Social andSustainability
Investment
Assessments

As a full member of the Responsible Business Alliance (RBA) and signatoryof the United Nations (UN) Global Compact, we adhere to an industry codeof conduct (RBA Code of Conduct) and international principles, which
promote environmentally responsible and ethical conduct. These principles
are specifically focused around labor, health and safety, the environment, ethics and management systems standards. Our global Human
Rights Policy reflects our commitment to preserving and protecting the rights of others as enshrined under the ten principles of the UN
Global Compact as well as other international conventions and frameworks. Per our commitment as an RBA full member, each of ourmanufacturing sites must complete an RBA self-assessment questionnaire (SAQ) annually, and undergo either an internal RBA audit or an
external RBA validated assessment program (VAP) audit on alternating years. The target score for each of our facilities is 85% or greater,
indicating no-to-low risk in the focus areas previously mentioned. In 2019, 100% of our facilities met this target.

• Drafted first corporate social
responsibility (CSR) statementof commitment

2008
2009

• Became a full member of the RBA• Documented CSR management systems• Deployed supplier engagement program

2010
2012

• Joined the RBA’s Responsible
Minerals Initiative (RMI)

2016
2017

• Launched Dollars-for-Doers programin North America• Listed on Barron’s 100 Most Sustainable
Companies for the first time

• ON Semiconductor Foundation beganrunning and funding as a 501(c)(3)• World’s Most Ethical Companies
designation for a 5th consecutive year

Page 6• Published first CSR report

2013
2015

• Launched Global Corporate
Giving (GCG) Program• Joined the Responsible Business Alliance (RBA)
as an Applicant Member and participated in the RBA
validated audit process (VAP) workgroup• Published first Global Reporting Initiative (GRI) report• Formalized Anti-Human Trafficking Policy• Deployed mandatory CSR training for all employees
and Board of Directors• Launched paid Employee Volunteer Program (EVP)in North America

2018
2019
2020

• Formalized Global Human Rights Policy• Joined UN Global Compact• Founding member of CSR Board• Addition to Dow Jones Sustainability Index (North America) Index

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

Corporate Social Responsibility
Governance Structure
President/CEO

Board of Directors, Corporate Governance& Nominating Committee
CSR Organization

CSR Site Champions and Subject Matter Experts

CSR Steering Committee Composition
Legal

Human
Resources

Environmental
Health and Safety

Global Supply
Chain Operations

Integral Partners
Compliance

EthicsSecurity

Key Accomplishments
Supplier Due Diligence
As of December 31, 2019, 100% of the smelters we source from for 3TG were Responsible Minerals Assurance Process(RMAP) conformant.

RBA Initiatives and Compliance
In 2019, seven of our manufacturing sites achieved a full score (200) and platinum level recognition during their initial RBA
validated assessment program (VAP).

Social and Sustainability Investment Assessments
In 2019, we were included in the Dow Jones Sustainability Index (North America) for a second year and included on Barron’s 100
Most Sustainable US Companies list for a third year. We were recognized as “Prime” status by ISS-oekom's Corporate Rating.

Corporate Philanthropy and Employee Volunteerism
The ON Semiconductor Foundation began running and funding as a 501(c)(3) in January 2020.

Leadership
In early 2020, our CSR team merged with Ethics and now report to a Vice President that reports directly to our CEO.

Human Rights
We submitted our first Communication on Progress (COP) as a signatory to the UN Global Compact.

Communication
Through our partnership with 3BL Media, we published 47 FMRs (blogs, press releases, articles, etc.) which received 964,828
page impressions and 231,185 page views; consistently above the site-wide average.

ON Semiconductor

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Energy Efficient Semiconductors

Sustainable Development Goals
The Sustainable Development Goals (SDGs), set by the UN, in 2015 highlight the world’s biggest social and environmental issues and area call to action for governments, businesses, civil society, and other organizations to achieve a better and more sustainable future for all by
2030. As a global company, we believe we have a responsibility to help achieve these goals.
ON Semiconductor mapped the 17 SDGs to our material topics and business strategy, all of which support our business objectives
through our products, programs and initiatives. Although we believe that all of the SDGs are vital, we prioritized five goals that are the most
relevant to our sustainability strategy to make the largest global impact. View our 2019 Communication on Progress (COP) submitted to
the UN Global Compact, that outlines our alignment with their ten principles and the UN SDGs.
The SDG icons throughout our CSR report highlight the work we are doing across ON Semiconductor to address these goals.

Page 8

Ensure access to water andsanitation for all• All of our wastewater is treated before it is discharged into the environment• We are committed to reducing our water consumption and recycling more water

Promote inclusive and sustainable economic
growth, employment and decent work for all• We have zero tolerance for forced labor• We assess and mitigate social risks within our supply chain• We strive for equal pay for equal work
• We focus on providing a safe workplace with zero injuries and occupational diseases

Reduce inequality within andamong countries• We promote equal opportunities for all• Our ambition is to be a leader of diversity and inclusion in the semiconductor industry

Ensure sustainable consumption andproduction patterns• We reduce consumption of chemicals and eliminate hazardous materials• We strive for zero waste in the landfill from our finished goods in our manufacturing sites

Take urgent action to combat climatechange and its impacts• We deploy programs to reduce greenhouse gas (GHG) emissions• We actively participate in advocacy for action on climate change

Corporate Social Responsibility Reportwww.onsemi.com

How Our Products Make a Difference in the Community
As a global company with more than 75 sites worldwide and over 32,000 products, we are proud to showcase our accomplishments inenhancing our global community. We have components in medical devices, fitness trackers and smartwatches, autonomous and electricvehicles, charging stations and solar inverters. We have produced enough solar inverter modules to replace at least 70 coal-fire power
plants – an accomplishment of which we can all be proud!
Our company divides our products into three main groups: power solutions, advanced solutions and intelligent sensing, thus allowing our
products to be well diversified and balanced. It is likely you have used one of our products without even realizing it. If you have talked on aphone, been in an electric vehicle, have solar panels on your roof, used Bluetooth for music, or are reading this report from a digital device,
you have likely crossed paths with an ON Semiconductor product. As the internet of things (IoT) and cloud computing continue to grow, so
will our presence in making our community more connected.

ON Semiconductor

Page 9OUR BUSINESS

www.onsemi.com

OUR BUSINESS
Overview[GRI: 102-1] [GRI: 102-2] [GRI: 102-3] [GRI: 102-5]

ON Semiconductor (NASDAQ: ON) is a publicly traded global semiconductor company headquartered in Phoenix, Arizona. We drive energy
efficient innovations, empowering customers to reduce global energy use. Our company is a leading supplier of semiconductor-based
solutions, offering a comprehensive portfolio of energy efficient power management, analog, sensors, logic, timing, connectivity, discrete,
systems on chip (SoC) and custom devices. Our products help engineers solve unique design challenges in automotive, communications,computing, consumer, industrial, medical, aerospace and defense applications. ON Semiconductor operates responsive, reliable, andworld-class supply chain and quality programs, robust compliance and ethics programs, a network of manufacturing facilities, sales offices
and design centers in key markets throughout North America, Europe and the Asia Pacific regions.
To learn more about our ownership structure and legal proceedings, see our 2019 Securities and Exchange Commission (SEC) Form
10-K and 2020 10-Q.

Worldwide Locations[GRI: 102-4]

Manufacturing Locations: Belgium, Canada, Czechia, Greater China, Japan, Korea, Malaysia, Philippines, United States and Vietnam
Design Center Locations: Australia, Belgium, Canada, Czechia, France, Germany, Great Britain, Greater China, India, Ireland, Israel, Italy,
Japan, Korea, Philippines, Romania, Russia, Slovak Republic, Sweden, Switzerland, United States and Vietnam
Solution Engineering Center Locations: Australia, Czechia, France, Germany, Great Britain, Greater China, India, Ireland, Israel, Italy,
Japan, Korea, Romania, Russia, Slovak Republic, Sweden, Switzerland and United States
ON Semiconductor

Page 11Energy Efficient Semiconductors
Financial Strength
2019 Revenue[GRI: 102-6] [GRI: 102-7] [GRI: 201-1]$5,517M

We demonstrate financial strength and efficiency through strong cash flows, stable revenue
streams and appropriate geographic and end-market exposure. We believe that ourcompany’s strong financial performance and innovative product portfolio will continue toprovide opportunities for future growth.

USD2019 Sustainable
Product Revenue~$460M
USD

Revenue by Market

33%

11%

11%

19%

26%

• Autonomous vehicles• Vehicle electrification• Body electronics andlighting• Vehicle communications &power management• TVs, STBs & game consoles• Wearables• White goods• Drones• Servers & workstations• Notebooks, ultrabooks &2-in-1s• Desktops, PCs, & all-inones• Power supplies, graphics &HDDs• Smart phones & tablets• Gateways, routers & basestations• USB Type-C & fast charging• Industrial automation &motion control• Power conservation, energy
infrastructure & internet ofthings• Cockpit displays, guidancesystems & IR imaging• Implantables, imaging,therapy & monitoring

Automotive
SectorConsumer
SectorComputing
SectorCommunications
SectorIndustrial/Medical/
Aero-Defense Sector

Data presented is as of December 31, 2019.

Revenue by Region

11%

14%
33%

15%
16%

25%

Singapore
Hong Kong
United Kingdom
United States
Other
Page 12

Revenue by Group

36%
50%

Advanced Solutions GroupPower Solutions GroupIntelligent Sensing Group

Corporate Social Responsibility Reportwww.onsemi.com
Brand[GRI: 102-7]

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

Helping Customers Solve their Unique Design Challenges
We work closely and collaboratively with our customers to solve theirunique design challenges using innovative technologies, robust designs,
and energy efficient products and solutions. We operate a global
network of solutions engineering centers (SECs), on-site customer
design facilities, and applications-focused design and test labs, allsupported by global teams of field applications engineers working tomeet the needs of our expanding customer base.

Operating a World-Class Supply Chain and Quality Program
We operate a flexible, reliable and responsive supply chain, which supports complex
manufacturing networks and dynamic global market conditions. This includes multiple
manufacturing and logistics sites located near our customers to ensure supply continuity.
During 2019, the company shipped more than 66.3 billion units through our global logistics
network. Our company’s approximately 35,000 employees around the world collaborate
with customers, distribution partners, and vendors, to develop not only more efficient siliconsolutions, but also more efficient ways of doing business.

ON Semiconductor

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Energy Efficient Semiconductors
Mergers and Acquisitions
In our highly competitive industry, we remain agile and strategic in order to meet business and market needs. Since our spin-off from
Motorola in 1999 and becoming a public company in 2000, we have proudly incorporated best practices and leaders from all of ouracquisitions. Our most recent acquisition of Quantenna in 2019 is paving the way for future developments in autonomous vehicles, such asallowing vehicles to communicate with one another. Additionally, we are a premier supplier of high performance silicon solutions for energy
efficient electronics. Our broad portfolio of power and signal management, logic, discrete, and custom devices help customers efficiently
solve their design challenges in automotive, communications, computing, consumer, industrial, LED lighting, medical, military/aerospaceand power applications. This tremendous growth has provided us the depth and scope of over 32,000 products, enabled us to build our
extensive intellectual property portfolio, and given us a global presence allowing us to be agile and competitive in an ever-changing market.

Customers[GRI: 102-6]

Our customers are categorized into original equipment manufacturers (OEMs),
distributors and electronic manufacturing service providers. We focus on three types
of OEMs: multi-nationals, selected regional accounts and target market customers.
Large multi-nationals and selected regional accounts, which are significant in specificmarkets, are our core OEMs. Distributors accounted for approximately 60% of ourrevenues in 2019 and typically resell to mid-sized and smaller OEMs, electronic
manufacturing service providers and other companies. These customers typicallyprovide manufacturing services to OEMs.

Revenue by Type of Customer

6%
34%
60%

OEMs
Distributors
Electronic Manufacturing
Service Providers

Page 14

Corporate Social Responsibility Reportwww.onsemi.com
Mission and Vision[GRI: 102-16]

MissionON Semiconductor creates energy efficient semiconductors to help make the world greener, safer, inclusive and connected.

VisionON Semiconductor will be the trusted supplier of choice for power, analog, sensor and connectivity solutions that enableenergy efficient electronics innovations.

Core Values[GRI: 102-16]

Our core values, first developed in 2004 and reviewed periodically, define who we are as individuals and as representatives of
ON Semiconductor. We are a performance-based company committed to profitable growth, world-class operating results, quality, anddelivering superior customer and shareholder value. By putting our core values of respect, integrity and initiative into action, we each do
our part in making our company a great place to work. Each year, our board of directors and global employees receive training on our corevalues through the Code of Business Conduct, which is available in the languages that represent our worldwide workforce.
Each of us is expected to demonstrate these core values in our roles at ON Semiconductor. These values apply equally to us all – employees,
global leadership team, executive staff and board of directors alike.

Respect

Integrity

Initiative

We treat each other with dignity andrespect. We share information andencourage different views in an open
and honest environment. We draw out
the best in each other, recognizing thatdiversity of backgrounds and experience
are key strengths. We all win when we
support each other.

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

We value people who demonstrate
a positive, “can-do” attitude, while
collaborating to win. We work
intelligently, with a sense of urgency,
while always maintaining ourcommitment to comply with applicablelaws, regulations and standards. If a
problem exists, we see it through to
rapid resolution while acting in an
ethical manner.

ON Semiconductor

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Energy Efficient Semiconductors
Core Values and Corporate Social Responsibility Map

ON Semiconductor Core Values,
Principles, and Programs

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

Respect
We treat each other with dignity and respect.
We share information and encourage
divergent viewpoints in an open andhonest environment. We draw out the bestin each other recognizing that diversityof backgrounds and experience are key
strengths. We all win when we support eachother by placing the success of the company
above individual interests.

Integrity
We say what we mean and are accountablefor delivering our commitments on time. We
address issues in an objective, fact-basedand constructive fashion without fear of
reprisal. When a decision has been made, we
all execute to support it. We comply with alllegal requirements and hold ourselves to thehighest standards of ethical conduct.

ON Semiconductor Areas of Focus, Standards, Policies and Programs
Interrelated areas

Governance
Code of business conduct
Compliance and ethics programs
Monitoring and oversight
Board independence
Ethics helpline
Investor relations
Anti-corruption
Data privacy
Customer privacy
Legal compliance

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

Initiative
We take informed risks while making databased decisions. If a problem exists, we areindividually responsible to see it throughto rapid resolution. We value people who
demonstrate a positive, “can-do” attitude,
while collaborating to win. We work smart
and with a sense of urgency.

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

Page 16

Financial strength
Tax management strategy
Cash management
Financial reporting

Employee well-being
Anti-discrimination/anti-harassment
Health, wellness and safety
Compensation and benefits
Training and development
Diversity and inclusion council
Freely chosen labor
Working hour standards
Employee activity committees
Freedom of association
Employee engagement
Performance review
OHSAS 18001

Public Policy
Advocacy
Organization memberships
Trade policy

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

Stakeholders
Employees
Suppliers
Customers
Government
NGOs
Investors
Communities
Nonprofits

Strategic PlanningEnterprise risk management
Business continuity, crisis management & disaster recovery
Product line business plans
Executive strategy session
Responsible sourcing

Corporate Social Responsibility
Supplier due diligence
UN Global Compact
CSR reporting
Sustainability
RBA initiatives and compliance
CSR audits and assessments
Community impact
Social and sustainability investment assessments

Community Impact
Employee volunteerism
Global giving:• STEAM Education• Disaster relief• Health• Human services• Environment

Corporate Social Responsibility Reportwww.onsemi.com
Our Culture[GRI: 102-16]

With a growing diverse and inclusive workforce and in parallel, our commitment to grow our business, last year, ON Semiconductor set out
to learn how its culture could play a critical role in supporting the business strategy.
In the first half of 2019, we focused our efforts on assessing the company’s current culture. We utilized a listening strategy that allowed us
to understand the state of culture through the lens of our employees via interviews, online surveys, as well as focus groups. As a result, ourcultural strengths of ethics, collaboration, customer focus, inclusivity and quality were reinforced. Additionally, we identified learning andinnovation as our culture priorities to drive us towards achieving our company strategy:• Learning will help empower our employees through opportunities to learn more about the business as well as improve their skills andabilities to grow in their careers.
• Innovation will help create a mindset in which employees explore ways to see and do things (products, processes, serving customers,etc.) differently. Doing so will allow us to build upon our great history of technical and product innovation and expand to all aspectsof our business.
With these priorities in mind, we developed a culture roadmap in the second half of the year. It has helped us learn how to leverage our vast
company expertise – whether it be product-related, business-related or function-related – to create goals and objectives that will enable
our business to succeed.

RITI

ES

CULTU

RE

ST

EthicsLearning

Customer Focus
Inclusivity

D IV E R S IT Y &I NC L U S I ON

Quality

INTEGRITYRESPECTN

PORATE SOCICORSPONSI BI L I AL
TY
RE

Innovation

Collaboration

RE

HS

CU

U

RE

IO
PR

GT

LT

Ultimately, we believe over the next few years, emphasis on our priorities of learning and innovation will help us realize opportunities
such as retaining knowledge, shortening ramp-up times, reducing reassignment delays, providing highly desirable growth opportunities
and generating innovative ideas which not only drive business success but also align with our CSR pledge of making a positive impact insustainability of all kinds.

INITIATIVECOR
ON Semiconductor

E VA L U E S
Page 17

Energy Efficient Semiconductors

Enterprise Risk Management[GRI: 102-11] [GRI: 102-30]

Overview
The mission of our enterprise risk management (ERM) program is to drive strategic
capabilities that preserve and create value for our company by embedding a riskaware decision-making culture across all functions. To that end, we have developed
a framework to systematically, consistently and effectively identify, evaluate,
prioritize, and manage key risks and opportunities across different time horizons
that can impact our company’s ability to achieve strategic goals and objectives.
Through our ERM discipline, over 20 functional groups within the company assess
risks and opportunities across the following groupings:• Business and Strategic• Emerging• Financial• Operational• Technology/New Product Development• Legal and Regulatory• Compliance• Ethics• Human Capital• Reputational
All functional groups including those that have the greatest impact on, or are most impacted by, our environment, people and ethicalconduct manage risks on an ongoing basis and report to the board of directors each quarter using the ERM framework. These groups
include, but are not limited to legal compliance, ethics, corporate social responsibility, environmental health and safety (EHS), and humanresources.

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

Page 18

Enterprise Risk Management
Governance Structure
President/CEO

Board of Directors, Corporate Governance& Nominating Committee

Enterprise Risk Management Organization
Risk Champions
Risk Owners

Corporate Social Responsibility Reportwww.onsemi.com

Business Continuity
ON Semiconductor understands the importance of business continuity and having systems of prevention and recovery in place to assist withthe disruption of business functions and processes that could affect our customers, partners and other stakeholders. Our business continuity
program derives from our holistic ERM model, which systematically, consistently and effectively identifies, evaluates priorities and manages
key risks and opportunities affecting the company.
We engage with internal and external industry experts to conduct risk assessments at our facilities and suppliers to identify key risks. The
types of risks we face include: 1) key equipment failures; 2) interruption from externally provided products, processes and services; 3)reoccurring natural disasters (such as earthquakes, floods, volcanic eruptions); 4) fires; 5) utility interruptions, such as power outages; 6)cyber-attacks on information systems; 7) labor shortages; and 8) infrastructure disruptions, such as breakdown of transportation, water orsewage. Additionally, we mitigate certain risks proactively through the qualification of certain products to a secondary production source.
We maintain a vigorous process in which we are consistently analyzing risks and working to reduce the likelihood and impact of negative
events, while identifying how to capitalize on the opportunities provided by the dynamic market and supply chain in which we operate. We
recognize that no amount of mitigation and prevention can stop all negative impact events from occurring. We engage in a robust processof planning for the response and recovery operations required to minimize impact to our customers, partners and stakeholders.

Ongoing risk
assessments

Prevention of
those events
that can beavertedPreparation for
those events
that cannot be
prevented

Responding toand recoveringfrom events that
happenCurrent Practice
In January 2020, the Taal Volcano in Batangas, Philippines erupted, causing an Alert Level 4 by thePhilippine Institute of Volcanology and Seismology. ON Semiconductor has assembly and test operations
manufacturing sites located in three cities in the Philippines – Carmona, Cebu and Tarlac
City. Carmona is approximately 40 miles north of the Taal Volcano. The business
continuity team quickly responded to this emergency by coordinating key
tasks that included providing personal protective equipment (PPE) in
the form of masks, eyewear, portable eyewash, etc., offering temporary
lodging to evacuated employees, quickly notifying customers of the
impact and working with our corporate social responsibility, customer
service and communications teams to create messaging surrounding
employee donations.

ON Semiconductor

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Energy Efficient Semiconductors

Quality and Reliability
At ON Semiconductor, we are committed to operating according tostringent, internationally recognized requirements for reliability
and quality. We demonstrate our commitment by continuing
our Road to Zero Defects initiative, which was implemented
several years ago. This initiative focuses on eliminating
quality excursions, improving 8D responsiveness, lowering
our parts per billion (ppb) defect rate and enhancing ourquality standards. We recognize that incorporating theseobjectives into our service offerings, processes and products
will enable us to use our quality and reliability as fuel for
growth of our corporation. Ultimately, we are committed tomaintaining a distinctive, world-class quality system that transcends
international quality standards and aims to exceed customer expectations.
For more information, please see our Quality and Reliability Handbook.

Culture of Quality
The key drivers embedded in our company’s focus on quality include employee ownership, leadership emphasis, message credibility andpeer involvement. Every other year we administer a survey through Gartner® to measure employee understanding of our quality initiatives
and gain insights on employee perception of our quality program. In 2018, our ranking placed us in the middle of the first quintile withapproximately 80% of our employees responding to the survey. The results reflect our employees’ perception of our quality performancedue to our increased focus on reinforcing our quality culture and the positive results of our road to zero defects projects.
In 2020, we began recognizing employees in our company’s monthly newsletter, The Circuit. These articles, referred to as ‘Quality Influencers’
highlight employees who have contributed to quality improvements and customer satisfaction. The next culture of quality survey will beadministered in summer 2020.

Page 20

Corporate Social Responsibility Reportwww.onsemi.com

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

We are committed to ensuring the highest standards of social responsibility in all regions at which our company
is located. We insist that 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), promote ethical behavior, and use environmentally responsible manufacturing processes and follow principles similar to
those in our Code of Business Conduct. As outlined in our Supplier Handbook, the supplier must conform to all environmental laws, allapplicable laws and regulations, behave ethically, conform to all social responsibility and conflict mineral requirements that are required by
ON Semiconductor’s CSR Statement of Commitment, and provide any requested certifications and cascade all applicable requirements
through their supply chain.

Global Supply Chain Operations

Management Approach

Our global supply chain operations (GSCO) organization is led by our senior
vice president of global supply chain and overseen by the COO, CEO and
COO/President/CEO
Board of Directors
board of directors. We operate a flexible, reliable and responsive supply
chain that is compliant with IATF-16949 and ISO 90001 requirements
GSCO Composition
as defined in our internal policies. We continually develop business
Planning
Procurement
partnerships with selected key suppliers and ensure that all purchasedmaterials used in product manufacturing satisfy current governmental,
Logistics
System & Integrations
environmental and safety criteria applicable to the country of manufactureand sale. Our transportation packaging meets electrostatic discharge (ESD)
Integral Partners
requirements, and appropriate use of packing is used to prevent physicalBusiness Units
Sales/CS Marketingdamage. We require our internal and external manufacturing facilities tocomplete specific tests, evaluations and calibrations to receive qualification
Internal & External Manufacturing
and acceptance by customers in order to perform. Through our sales andoperations planning process, we work directly with our business units and sales teams to align capacity and demand to support customer
requirements.
Governance Structure

Our Supply Chain
Our supply chain has a multifaceted supply structure of direct materials suppliers, foundry and subcontractor providers, indirect material
suppliers and professional service providers deployed across a global sourcing and procurement organization. In 2019, we worked with over
10,000 suppliers and service providers in North America, Asia Pacific, Europe and the Middle East, and of those suppliers, approximately
7,200 were production-related. The following graphic shows the percentage of our manufacturing sites’ 2019 procurement budgets whichwere spent on suppliers local to the site’s region.
ON Semiconductor’s Spend on Local Suppliers by Region (%)

90

90

92

92
77

78

89

92

80
2017
2018
2019

Asia-Pacific
ON Semiconductor

EMEA

North America
Page 21

Energy Efficient Semiconductors
We expect our suppliers and on-site service providers to follow the same CSR tenets that we have set for our own operations throughour Code of Business Conduct and the RBA Code of Conduct. We engage our suppliers in regular cycles by clearly communicating
our expectations, deploying risk assessments, providing training opportunities for capacity building, conducting verification audits andaddressing any non-conformance. Our last supplier engagement cycle was in 2017, during which major suppliers signed a statement ofconformance agreements to our Code of Business Conduct and the RBA Code of Conduct. In 2018, our major suppliers were notifiedof changes to the RBA Code of Conduct, version 6.0. In 2019, major suppliers were notified of the RBA VAP Operation Manual 6.01
update. The next supplier engagement cycle will occur in 2021 to reflect changes to the RBA Code of Conduct, version 7.0 and the
ON Semiconductor Code of Business Conduct.
Major suppliers and selectservice providers are
required to provide written
acknowledgement to
ON Semiconductor’s Codeof Business Conduct andRBA Code of Conduct

Supplier

Communication

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

Supplier

Acknowledgement

Risk
Assessment

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

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

Audits

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

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

Training

Corrective
Actions

Human Rights Due Diligence in Our Supply Chain
As a purchaser of products containing the metals that include tin, tantalum, tungsten or gold (conflict minerals) from suppliers for use in our
manufacturing process, we continue to be concerned about the reports of violence and human rights violations resulting from the sourcingof such metals from the Democratic Republic of the Congo (DRC) and adjoining countries. Although we do not desire to eliminate metals
originating from the DRC and adjoining countries, we are committed to ensuring the conflict free sourcing of minerals. By collaborating with
our suppliers and the RBA through the Responsible Minerals Initiative (RMI), we are best able to fulfill this commitment.
By using the Organisation for Economic Co-operation and Development (OECD) framework, and participating in responsibility initiatives,
we established a conflict minerals policy and related due diligence process to ensure that minerals are not sourced from entities supporting
armed conflict within the DRC and adjoining countries. In 2018, the OECD Guidance Annex II expanded conflict minerals to include cobalt,
graphite and mica, which are related to child labor or abuse of women issues. With the addition of these minerals to the OECD Guidance
Annex II, cobalt is now present in our supply chain. Although it is low impact at this time, we are monitoring our suppliers just as we dofor the conflict minerals.

Identify

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

Page 22

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

AccessInformation

Risk
Assessment Use Reasonable Country of Origin

Disclosure

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

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

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

Corporate Social Responsibility Reportwww.onsemi.com
In 2015, we achieved our road to zero by identifying all utilized smelters. This means we are aware of and can trace the origin of metals
throughout our supply chain. We hold our suppliers responsible and align responsibility and transparency with our customers’ requests.
Each year, we target 100% responsible minerals assurance process (RMAP) conformant smelters and we achieved this target in 2019.
However, supplier conformance and the incorporation of new requirements are an on-going process and require continued review andupdates to our records. If we become aware that our supply chain includes uncertified minerals sourced from a conflict region, we act
promptly to review the circumstances and remedy the situation as appropriate. Members of our conflict minerals team also actively
participate in RMI subcommittees, such as the China smelter engagement team, smelter engagement team, cobalt workgroup, minerals
due diligence practice and minerals reporting template.
Please see our latest SEC Form SD, as well as our Conflict Minerals Sourcing Policy for more information.

Current PracticeIn April 2019, ON Semiconductor hosted its Global Sourcing andProcurement Summit in Vietnam. The event brought together over
50 attendees, which included a mix of manufacturing, sourcing,
corporate services and capex managers and buyers. There
was also an awards dinner to recognize key supplier for theiroutstanding performance and excellent quality.

ON Semiconductor

Page 23

Energy Efficient Semiconductors
Environmental, Social and Governance (ESG) Recognition

DJSI North America Sustainability
Index: Two Consecutive Years

In 2019, we were one of four semiconductor companies included in the North
America component.

World’s Most Ethical Companies:
Five Consecutive Years

In 2019, we were one of four semiconductor companies included in theelectronics and semiconductor industry.

EcoVadis Gold Level Recognition

In 2019, we scored 85/100 from EcoVadis, a leading platform forenvironmental, social and ethics performance ratings for global supply
chains. Overall, we scored in the top 1% of companies assessed by EcoVadis
in the “Manufacture of electronic components and boards industry.”

MSCI ESG Ratings

In November 2019, ON Semiconductor moved from the ESG Rating of BBB to A.
This change in our rating is in large part to our practices surrounding
Controversial Sourcing. Currently, we are one of the Top 5 Industry Leaders.

ON Semiconductor Holds the Prime
Rating for CSR with ISS-oekom

In 2019, we were recognized as “Prime” by ISS-oekom, one of the world’s
leading rating agencies for sustainable investments. Companies receive
grades from A+ (best) to D–; we obtained a C+ and rated as a prime company.
With that result, we ranked in the top 25% of the 49 companies in thesemiconductor industry.

ON Semiconductor's Sustainalytics
ESG Risk Rating Score is 25.3

As of February 2020, ON Semiconductor received an overall ESG risk ratingscore of 25.3/100 points (the lower the score, the better) and is consideredby Sustainalytics, a global ESG research and ratings firm, to be at medium riskof experiencing material financial impacts from ESG factors.

Platinum RBA VAP Recognition Award ISMF, Seremban, Malaysia; South Portland, Maine; Mountain Top,for Receiving a Perfect Score of 200 Pennsylvania; OSV, Bien Hoa, Vietnam; Carmona, Philippines; Suzhou, China;
Oudenaarde, Belgium
for Initial Recipient Sites

Most Sustainable Company:
First YearON Semiconductor was awarded the Most Sustainable Company in 2020 in
the Semiconductor Industry.

To view a complete list of our awards and recognitions, please refer to the Appendix on page 70.

Page 24

Corporate Social Responsibility ReportOUR GOVERNANCE, ETHICS
AND COMPLIANCE

Energy Efficient Semiconductors

OUR GOVERNANCE, ETHICS AND COMPLIANCE
Governance Overview[GRI: 102-18] [GRI: 405-1]

All business conducted at our company by employees, managers and officers is under the direction of the CEO and the oversight of theboard of directors. The board has at least four scheduled meetings annually where they and the various committees review and discuss
reports by management and the performance of the company. Our corporate governance principles further set forth certain requirements
under which the board and management operate.

Board of Directors Summary
This summary represents the members of the company’s board of directors and committee representation, effective immediately following
re-election at the Annual Meeting in May 2020.
Governance Practices
Total Board Size
Seven
Independent Directors
Six
Women on the BoardOne
Age Limit
75 years old
Board Breakdown by Age and Gender
Gender: Female – One; Male – Six. Ages 54, 58, 62, 64, 64, 64 and 66
Number of Board Meetings Annually• Audit Committee
Quarterly at minimum; in 2019 the committee met 11 times• Compensation Committee
Twice per year at minimum; in 2019 the committee met 7 times• Corporate Governance and Nominating Twice per year at minimum; in 2019 the committee met 5 times
Committee• Executive Committee
As deemed appropriate; in 2019 the committee met 7 times• Science and Technology Committee
Twice per year at minimum; in 2019 the committee met 4 times
Taxes Paid to the Government
See 2019 SEC Form 10-K

Board Member

Committees

Atsushi Abe

Audit, Science and Technology

Alan Campbell
Gilles Delfassy
Emmanuel T.
Hernandez
Keith D. JacksonPaul A. Mascarenes

Christine Y. Yan

Page 26

Qualifications

Semiconductor, finance, mergers and acquisitions,international
Audit, Corporate Governance and Semiconductor, public company management, finance,
Nominating, Executive (chair)mergers and acquisitions, international
Compensation, Science and
Semiconductor, manufacturing, marketing, publicTechnology (chair), Executive
company management, international
Audit (chair), Corporate
Semiconductor, public company management, finance,
Governance and Nominating,mergers and acquisitions, international, compliance
Executive
Executive
Semiconductor, manufacturing, marketing, publiccompany management, mergers and acquisitions,international, compliance
Compensation, Corporate
Manufacturing, public company management,
Governance and Nominatinginternational(chair), Executive
Compensation (chair), Science
Manufacturing, marketing, public company
and Technology, Executive
management, mergers and acquisitions, international

Corporate Social Responsibility Reportwww.onsemi.com
Compliance and Ethics Programs

Compliance& Ethics Programs
Training,
Communications
and Engagement

o

nd

tect

Prevent

Resp

Our Code of Business Conduct (code) outlines the broad principles oflegal and ethical conduct embraced by our company and our core valuesof respect, integrity and initiative guide every business decision. Paired withthis is the responsibility of each employee to comply with those laws andregulations, embrace our core values and exemplify our commitment tooperating ethically.

Policies,
Procedures
and ToolsDe

Our compliance and ethics programs are designed to assist us in preventing,detecting and responding to unethical or illegal conduct, and promote an
ethical and legally compliant business culture. To do this, compliance andethics are integrated into every level of our company from the board of
directors and CEO, to each individual employee.

Risk
Assessment

Oversight andAccountability

Ethics Liai
son
ness
i
s
s
Bu

[GRI: 102-16] [GRI: 102-17]

Monitoringand Auditing

These programs provide a procedural framework for enhancing andReporting,monitoring our compliance with the code, the policies referenced in the
Program Testing
Investigations,and Continual
Discipline andcode, and other rules or regulations governing our worldwide operations.
Improvement
Incentives
Additionally, the programs are structured to comply with, among other laws
and regulations, the requirements of the Sarbanes-Oxley Act of 2002, theForeign Corrupt Practices Act of 1977, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the Listing Rulesof NASDAQ Stock Market Inc.

Compliance Program

Compliance
Governance Structure
President/CEO

Board of Directors, Audit Committee

Chief Compliance Officer/General Counsel
Executive Committee for Compliance Oversight
Legal Compliance Office

Assistant Compliance Officers

Integral Partners
Human
Resources

Internal
Audit

Enterprise
Risk
Management

Communications

ON Semiconductor

Information
Security
EthicsPhysicalSecurity
Corporate
SocialResponsibility

We always strive to comply with the law, and in certain areas, wehave adopted policies and practices that go beyond what the law
requires in order to foster a culture of integrity and accountability.
Our chief compliance officer and general counsel is responsible
for administering and executing legal compliance programs
designed to prevent and detect violations of the law, the code or
related standards of conduct by employees or third parties, withoversight from the audit committee of the board of directors. The
law department’s programs for anti-corruption, trade complianceand data privacy are designed to include all of the essential
elements for effective compliance, including risk assessments,
policies and procedures, training, and monitoring and auditing
thorough investigation and remediation of misconduct. These
legal compliance programs are dynamic and continually evolving
as our company grows and the business landscape changes.

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Energy Efficient Semiconductors
Ethics Program

Ethics

In parallel with our legal compliance program, we aim to implement
Governance Structure
ethical principles into everyday business operations by providing
relevant training and guidance, targeted communications
Board of Directors, Corporate GovernancePresident/CEOand dedicated resources. We aspire to be a global leader in& Nominating Committee
demonstrating the power of aligning business objectives withVice President, Ethics & Corporate Social Responsibility
doing the right thing. Our vice president of ethics and corporatesocial responsibility, who reports directly to the CEO, is responsible
Ethics Committee
for administering and executing the ethics program. She andher team manage the code, related training and education andEthics Program
oversee the intake and triage of complaints and questions that
Business Ethics Liaisonscome into our company’s helpline or other reporting channels.
Working closely with the law department, human resources andany other relevant departments, the ethics program ensures that all concerns are promptly and thoroughly investigated without retaliation.
Our employees are empowered and encouraged to report potential ethics violations, and taught to recognize extraordinary commitments
to our core values.

What it Means to be a Business Ethics Liaison
Our network of 52 Business Ethics Liaisons (BELs) across the globe serve a critical role in promoting and institutionalizing an ethical culture
throughout our global operations. Ethics is a top-down and bottom-up process at our company, and every employee is encouraged to talkabout ethics, raise concerns and share their experiences. Our CEO sets the tone at the top by communicating our expectations and holding
our managers accountable for delivering on those expectations. BELs further amplify these expectations at the local and site levels, serving
as a trusted resource for employees seeking guidance or wishing to raise a concern.
The BEL network, which is comprised of employees of all job functions and grade levels, is essential to the continual strengthening of
our company’s ethical foundation and culture of integrity. Through quarterly calls, BELs get the
chance to review case studies, share best practices, receive trainings and discuss trends in the
BELs
compliance and ethics fields. In addition, the compliance, ethics and CSR programs host anannual conference where all contributors to these programs come together to gain new skills,
at our sites
enhance their compliance and ethics acumen and discuss ways to improve the programs.
globally
These events help keep the programs focused and assures consistency across the globe andthroughout the many layers of our company.

52

The availability of BELs gives employees access to a peer with whom they can raise potential concerns outside of human resources andtheir management chain. The accessibility of this additional reporting channel helps our company integrate compliance and ethics into
our culture by building trust at the local level. We consider the fact that employees choose to raise concerns to BELs more than any otherreporting channel to be a reflection of the strength of the compliance and ethics programs. Of course, employees also have the option ofusing the ethics helpline, which is available online, and toll-free by phone, 24-hours a day, seven days a week, with translators available in all
languages in which we do business. Further, unless restricted by local law, employees may make reports to the ethics helpline anonymously.

Page 28

Corporate Social Responsibility Reportwww.onsemi.com
Number of Incident Reports and Requests for Advice by Reporting Channel
183
156

2016
2017

102
61
10 12 15

19

CCO

1 3 5 7
Assistant CCO

48 50
24
BEL

65

65
11 10 11 11

Helpline

2018
2019

Human
Resources

12

21 27 19
Security

8 3 1 11
Legal

9 7

28

Other

Ethics Helpline
U.S.: 1-844-935-0213
All other locations: Click on the link below for country-specific instructions.
Online: helpline.onsemi.com

Program Trust and AwarenessWe believe employees’ trust and awareness of the ethics and compliance programs
is attributed to our organizations’ continuous training and education on our Codeof Business Conduct.
In the spirit of driving continuous improvement, we conduct a biennial survey
dedicated to measuring employees’ perception of ethics at our company. In 2019,
this survey was made available to all employees worldwide, with a 70% participant
rate. The 2019 results of this survey revealed that within two years since the previous
survey was distributed, awareness of our code, ethical responsibilities and theeffectiveness of our compliance and ethics trainings raised an average of 5.72%.
Even more telling, 90.7% of respondents stated that they believe their manager iscommitted to ethical business conduct at all times, and 88.1% replied they would
feel comfortable approaching their manager with issues or questions related to
ethical business conduct.

Reporter Anonymity Rate
61%

69%

66%

39%

31%

34%

2017

2018

2019

Anonymous Reporters

Total Number of Reports andRequests for Advice
157
Total Number ofIncident Reports

Another indicator of trust is the utilization of our reporting channels. Employees
have access to a number of reporting channels including the following: ethics
Total Number of
helpline, a network of 52 BELs, members of the ethics and compliance programs,
Requests for Advice
and direct access to the chief compliance officer and vice president of ethics andCSR. In the same survey, 85.5% of respondents stated that they feel comfortable
ON Semiconductor

Self-Identified Reporters

216
230

2017
2018
2019

49
77
150

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Energy Efficient Semiconductors
approaching their BEL with issues or questions related to ethical business conduct.
An overwhelming majority of all incident reports (48%) sent to the ethics andcompliance programs are transmitted via a local BEL. While survey results andreporting numbers are encouraging, it is our goal to continually improve the ethics
program by refining existing policies, clarifying processes and delivering customized
and effective training.
Our company’s code is central to our organization, embodying our expectations
around legal and ethical business conduct in employees’ day-to-day activities. It isavailable for employees to review in 14 languages, making it easily accessible toemployees in all regions where we do business.

2019 Top Corrective Actions

58% Education
6% Process Improvement

Substantiation Rate
65%

62%

57%

35%

38%

43%

2017

2018

2019

Non-Substantiated Reports

Substantiated Reports

The ethics program staff reviews the code annually. Every year, the boardof directors and all employees are required to read and acknowledge
their understanding of it by taking an online training course.
We also require managers and other select individuals to complete
additional compliance-related training courses related to topics such as
anti-corruption and privacy.

10% Formal Discipline
26% Other
Global Responsibility Week
Every year we celebrate Global Compliance and Ethics Week, which coincides with The Societyof Corporate Compliance and Ethics (SCCE) and the Health Care Compliance Association(HCCA) Corporate Compliance and Ethics Weeks. The observance week is an opportunity tohighlight the importance of ethics and compliance in the workplace and build awareness inways that reinforces not just specific rules and regulations, but an overall culture of ethics
and compliance. In 2019, we renamed the event to be referred to as “Responsibility Week,”
and focused on raising the awareness of not only the compliance, ethics and CSR programs,
but other departments as well. These departments included environmental health andsafety, along with diversity and inclusion. The week provides awareness, recognition andreinforcement of our corporate initiatives, as well as location-specific learning activities andcelebrations.

Page 30

Annual Online
Compliance andEthics Training

Complianceand Ethics
Town Halls, COBC
Roadshows andResponsibility
Week

Targeted, Live
Compliance andEthics Training

Corporate Social Responsibility Reportwww.onsemi.com

Current Practice
In June 2019, the former Corporate Compliance and Ethics, and CSR programs held a joint biennial
conference in Seoul, South Korea. Over a hundred global attendees participated in the weeklong event,reviewed regulatory and legal developments relevant to ON Semiconductor, and discussed trends andinnovations in the areas of compliance, CSR, diversity and inclusion and exchanging best practices.
At the closing of the 2019 conference, in spirit of our core valuesof respect, integrity and initiative, attendees volunteered throughthe Korea Federation of Volunteer Center by making kimchi.
During this event, 200 boxes were donated to multi-cultural
families, single parent families and seniors living alone.

Current PracticeDuring Responsibility Week (Nov. 3 – 8), the CSR team encouraged employees to take a CSR
pledge to help the environment and/or better their local community. All submitted entries wereplaced in a special drawing and 10 winners were selected at random. Winners werefrom China, the Philippines, Slovakia and the U.S. ON Semiconductor donated$1,000 USD to each of the winners’ selected charities.
At the Phoenix, Arizona headquarters, employees were given succulents toremind them to take the CSR pledge as small actions can add up to makea big difference in our homes and communities.

ON Semiconductor

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Energy Efficient Semiconductors
Public Policy and Activities
We support public policies that encourage the innovation, investment and open markets necessary to advance our vision of driving energy
efficient innovations that empower customers to reduce global energy use. Our public policy program reflects our profile as a global
company headquartered in the United States, which interacts regularly with government agencies around the world. Much of our public
policy advocacy is performed through the U.S. Semiconductor Industry Association (SIA), although our company is also a member of local
associations in the regions in which we operate. Our CEO, Keith Jackson currently is the 2020 SIA Chair.
We are an active participant in the World Semiconductor Council (WSC), an organization composed of the world’s leading semiconductor
industry associations from China, Chinese Taipei, Europe, Japan, Korea and the United States. The organization meets annually at the CEOlevel to make recommendations to governments and authorities on issues such as expanding the global market for information technology
products by promoting fair competition, sound environmental and health and safety practices, intellectual property rights and open markets.
Among the public policies we supported in 2019 are the following:

Public Policies Supported – 2019
Open Markets andFair Competition

Pro-Innovation,
Pro-Growth Business
Environment
Stopping Counterfeit
Semiconductors
Energy Efficiency,
Fuel Economy andAutomotive Safety

Page 32

We actively worked to promote policies that open markets and fair competition. Working through our trade associations,we opposed tariffs on semiconductors, including the 25% tariffs that the U.S. imposed in 2018 on imports of discrete
semiconductors and integrated circuits imported from China. We worked through the WSC to promote transparency on
government subsidies, which depending on size, scope and discriminatory application have the potential to distort faircompetition in global semiconductor markets. We also recommended that when the U.S. government imposes export
controls, it do so under two conditions: 1) only to the extent necessary to protect national security; and 2) only if thecontrolled U.S. items cannot be easily substituted with foreign sourced items.
We worked with the SIA to support U.S. government policies that promote innovation and growth. This includes assisting
increased federal support for semiconductor related research and development at universities and national laboratories,
encouraging the protection of intellectual property including trade secrets and commenting on proposed treasury regulations to implement the 2017 Tax Act’s international provisions.
Counterfeit semiconductors are unreliable and can fail at any time. The semiconductor industry has found counterfeits in
air bags, train-braking systems and other applications where a failure can have serious health or safety consequences.
In 2019, we assisted law enforcement to identify and seize counterfeit goods and remove them from the marketplace.
We are an ally member of American Council for an Energy-Efficient Economy (ACEEE), a thought leader on energy
efficiency policies and programs. These policies often relate to “plug loads” such as LED lighting, variable speed motors
in heating/ventilation/air-conditioning (HVAC) and smart buildings. “Energy efficiency” also includes transportation
efficiency including fuel economy standards. Additionally, we are a member of Motor & Equipment Manufacturing
Association (MEMA) that advocates for legislation and regulations related to fuel economy and automotive safety suchas advanced driver assistance systems (ADAS) including automatic emergency braking and policies to facilitate theintroduction of autonomous vehicles.

Corporate Social Responsibility Reportwww.onsemi.com
Political Contributions[GRI: 415-1]

Participating in political activities is a very sensitive and complex area, and strict laws govern our political activities as a company. For thisreason, ON Semiconductor does not make political contributions to individual candidates. In the U.S., companies and other organizations
may organize political action committees (PACs) to support political candidates with funds voluntarily contributed by qualified employees.
We chose not to have a PAC and did not make any political contributions in our company’s name in 2019.

Privacy
In 2019, we prepared for the arrival of the California Consumer Privacy Act (CCPA), which took effect on Jan. 1, 2020. The CCPA mirrors, inmany respects, the General Data Protection Regulation (GDPR) in the European Union, which came into effect in May 2018.
We also continued to refine our internal and external privacy
policies and expanded our training efforts to focus
on functional teams most directly impacted by theregulatory changes in this area, including information
technology, finance, human resources, procurement
and legal. In addition, BELs attended a live training
session dedicated to the GDPR and the CCPA privacy
regimes. For more information, please visit ourPrivacy Policy.

ON Semiconductor

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OUR PEOPLE

www.onsemi.com

OUR PEOPLE
Overview[GRI: 102-7] [GRI: 405-1]

We believe our company’s mission, vision, values and culture afford opportunities for everyone to make a difference in building a successful
global business. We are constantly striving toward a more diverse workforce that benefits our company and enables us to meet the needsof our customers, suppliers, employees and shareholders worldwide.
Our community of employees are located around the world with major facilities in the U.S., Belgium, Canada, France, Ireland, Slovak
Republic, Czech Republic, Japan, Korea, China, Malaysia, Vietnam and the Philippines. As of December 2019, we had approximately 35,000
employees operating globally.
Worldwide Workforce
by Region

6%

Workforceby Gender

Managementby Gender

14%

11%

Americas
Asia (Excluding Japan)
Japan
EMEA

69%

20%

44%
FemaleMale

56%

FemaleMale

80%

U.S. Workforce by Ethnicity
White
61.8%
Asian
19.4%
Undelcared
9.9%
Hispanic or Latino
4.6%
Two or more races
2.1%
Black or African American
1.7%
American Indian or Alaska Native
0.3%
Native Hawaiian or other Pacific Islander 0.2%
White
61.8%
Asian
19.4%
Undelcared
9.9%
Hispanic or Latino
4.6%
Two or more races
2.1%
Black or African American
1.7%
American Indian or Alaska Native
0.3%
Native Hawaiian or other Pacific Islander 0.2%

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Energy Efficient Semiconductors

Commitment to Diversity and Inclusion
Overview
We have long remained committed to diversity and inclusion (D&I), recognizing that ourcompany is at its strongest when we effectively draw upon the wide variety of experiences,knowledge, culture, customs and backgrounds that all of our employees and leaders possess.
As a company, we celebrate differences and promote an inclusive environment by valuing thecontributions of our employees and the knowledge of diversity that goes beyond race, ethnicity and gender. Diversity is about understanding
and embracing the unique differences, talents and perspectives of employees, customers and suppliers. Diversity of thinking helps us
continue to encourage the creativity and innovation necessary for us to maintain a competitive advantage in the global marketplace.
In 2019, our company continued with the diversity metrics established in 2018 as part of our corporate bonus performance plan in which
we met or beat the target for each metric. We launched a new D&I training course as part of our learning and development leadershippathways model, Inclusive Leadership. We celebrated D&I week for the first time internationally with over 60 events across more than
30 of our global locations. We also participated in a SEMI Foundation and Deloitte study where we ranked #1 Fortune 500 high tech/semiconductor company for gender diversity. Members of our corporate social responsibility team also actively participate in RBA’s diversity
and gender task force.

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

Policies and Practices
Development and Training
Communication and Awareness
Fill the Talent & Succession Pipeline
Measure Success
In 2018, we outlined our strategy around diversity and inclusion by establishing our integrated plan that is made up of five pillars: 1) policies
and practices; 2) development and training; 3) fill the talent and succession pipeline; 4) communication and awareness; and 5) measuresuccess. With this initiative, global strategies and programs have incorporated diversity and inclusion into our recruitment, engagement,
development and succession planning processes.
In 2019, we made great strides in the work we are doing around our policies and practices. We launched a U.S. paternal leave policy andglobal human rights policy. We expanded our pay equity review from a U.S.-only assessment in 2018 to a global assessment in 2019. In
addition, to drive our strategy for 2020 and beyond, we submitted our company data for diversity indexes to benchmark our performancein comparison to other companies across industry. This led to being included on the Bloomberg Gender-Equality Index.
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Corporate Social Responsibility Reportwww.onsemi.com

Management Approach
The Senior Leaders’ Diversity and Inclusion Council is a governing body that provides leadership, direction and support to make us a morediverse and inclusive company. The D&I council chairperson is the head of diversity and inclusion and the members include human resources,
executives, chairs of our affinity network groups (ANGs) and regional representatives located at our global sites. Our ANGs play an integral
part in the work we do around D&I and include the following groups: Black Employee Network (B.E.N.), Cultivate, Employee Activity
Committee, STEM UP (science, technology, engineering and math for under-represented populations), Women’s Leadership Initiative andnewly formed in 2020, Continua and Veteran and Military Employees (VME). These groups help facilitate networking, mentoring, culturalawareness, recruitment, employee development and retention, along with increased collaboration and innovation, and service learning.
Charters for the ANGs align seamlessly with our core values and diversity and inclusion framework.

2014• Women’s Leadership Initiative (WLI)
group launched

and Inclusion Council launched2015 •• Diversity
D&I Vision, Mission and Framework established2016• Affinity Network Groups (ANGs)
launchedof Diversity and Inclusion hired2017 •• Head
D&I incorporated into succession planning process• Diversity metrics added to corporate bonus plan
• D&I Benchmarking – Integrated Plan (roadmap)
established• Diverse candidate pool and interview panel• Conducted US pay equity assessment• Included on Bloomberg Gender-Equality Index• D&I training added to L&D leadership pathways
model• Mentorship program for Senior Female Leaders

2018

paternal leave policy launched2019 •• U.S.
Formalized global human rights policy• Conducted global pay equity assessment• Diversity indexes

2020

Diversity and Inclusion
Governance Structure
President/CEO

Board of Directors

Diversity & Inclusion
Organization

Diversity & Inclusion
CouncilAffinity Network Groups
B.E.N. (Black Employee Network), Continua, Cultivate, Employee Activity Committee,
STEM UP, VME (Veteran and Military Employees), Women’s Leadership Initiative

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Energy Efficient Semiconductors

Affinity Network Group Key Highlights
Mission
Empower and support women to succeed throughprofessional development in business, strategic andfinancial acumen.

Science Technology
Engineering and Math

Page 382019 Key Accomplishments• Hosted quarterly financial earnings call for expanded employee
audience• Produced, sponsored and funded multiple strategic and financial
acumen events across globe• Created educational content regarding the power of language• Created best practices toolkit and new chapters of WLI
Develop and retain a diverse workforce that will
• Attended diverse recruitment conferences through National Society
positively affect our company’s outcome with regardof Black Engineers, National Society of Hispanic Professionals,
to innovation and performance. Our programs will beSociety of Women Engineers and Recruit Military
focused on retaining employees at ON Semiconductor• Paired 86% of eligible new hires at our Phoenix location withand developing new talent in the local area for thecompany ambassadors to ensure a smooth integration to theunder-represented population. Our key focus areas are
ON Semiconductor workplace and culture
recruitment, retention and service leadership.
• Partnered with local schools, universities and nonprofits in Arizona,
Idaho and New York to increase interest and engagement in STEM
education and career paths• Fully funded scholarships for 18 high school students to participate
in the AI4ALL program in Phoenix, Arizona
Unite a group of diverse generations who are• Opened The Park, our Phoenix office’s first collaborative workspacecommitted to engaging in the workforce and enhancing • Created and launched our Working on a Multi-generational Team
our collaborative company culture. We are committed
training across North America
to understanding all generations in the workplace and • Hosted Kristen Hadeed, founder of Student Maid and author ofconnecting ON Semiconductor with the developing
Permission to Speak Up, for a keynote speaking engagement andworkforce community.
workshops• Collaborated with local charities to pack and donate WeekEND
Hunger Backpacks and hygiene kits
Facilitate community service and employee engagement • Obtained 272 employees and their family members to volunteer at
activities.
St. Mary’s Food Bank
• Sponsored the Academia Del Pueblo holiday program and recruited
126 volunteers to make the event a success
Foster an environment that is conducive to the• Launched in July 2019
recruitment, retention and career advancement of• Doubled membership by August 2019Black employees. ON Semiconductor is committed to• Collaborated with two black-owned media channels to advertisepromoting our brand and emerging market penetration
ON Semiconductor in the community
in the black community.
• Celebrated and brought awareness to multiple American black
heroes and holidays
Cultivate an inclusive workplace where all employees• Approved by Diversity and Inclusion Council, December 2019are free and encouraged to be themselves. We also
• Formal launch in January 2020advocate for those who are - and who support LGBTQ+ (lesbian, gay, bisexual, transgender, queer
or questioning (the plus encompasses a list of otheridentities that fall under the queer umbrella)) people inour company, in our families and in our communities.
Recruit veterans and military members, and provide• Approved by Diversity and Inclusion Council December 2019
these employees transitional assistance into the civilian • Formal launch in February 2020
workforce at ON Semiconductor, develop and retain
these employees and increase networking throughcommunity outreach.

Corporate Social Responsibility Reportwww.onsemi.com

Current PracticeIn 2019, as part of our diversity and inclusion initiative, aGlobal Diversity Roadshow was held at three of our sites –Phoenix, Arizona, Leshan, China and Suzhou, China – with
our newest member to the board of directors, Christine Yan.
During the Phoenix visit, our affinity network group, STEM UP, hosted an interactive conversation with her.
Christine shared her unique background and experience succeeding in the engineering field, what sparked
her passion for science and the importance of diversity and inclusion for a seamless integration following
mergers and acquisitions.
While in China, she toured our Leshan site’s back-end manufacturinglocation and participated in a women’s leadership session. She
also met with employees in Suzhou as well.

Current PracticeIn April 2019, over 30 of our international sites hosted Diversity and Inclusion Week celebrations withmore than 60 events for over 35,000 employees and contractors. The events included panel discussions,training workshops, cultural talent shows, community service projects
and discussions with site leadership. ON Semiconductor is proudof our diverse workplace community and is committed tosupporting all of the remarkable individuals that contribute to
our company’s success.

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

Recruitment and Retention[GRI: 401-1]

We proactively seek new candidates to add to our innovative and customer-oriented organization. We look for talented candidates who
desire challenging, empowering and engaging careers. To diversify our workforce, we recruit university graduates and candidates fromunder-represented groups who bring various perspectives and diverse knowledge to our company.
Rate of New Hires
By Age5%

By Gender

55%

By Region37%<30 Years Old
30-50 Years Old>50 Years Old

40%

Female
Male

63%

8%

69%
Asia
Japan
Americas
EMEA

19%
4%

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

Transfers Globally by Gender

23%

35%
FemaleMale

65%Page 40

FemaleMale

77%

Corporate Social Responsibility Reportwww.onsemi.com

Current Practice
ON Semiconductor has officially partnered with Fairygodboss,the largest career community for women that supports female
professionals to connect with companies that care about gender diversity, read and write anonymouscompany reviews, as well as discover employer benefits and company culture. As a company, we arealways looking for ways to support our female workforce. This partnership helps grow our pipeline of top
female talent while emphasizing
our commitment to gender
diversity.

Current Practice
In February 2019, ON Semiconductor launched the Vietnam Cadetship Engineering Program for local
operations. The program allows new graduates the opportunity of a one-year contract as a cadet engineer.
The selected candidates acquire necessary knowledge, develop the relevant skills and participate in atleast two assigned projects to ensure their success in their roles as official engineers in the future thatwould be valuable resources for current talent war. The program has been incredibly successful. Over halfof the cadets were selected to fill vacant, full-time positions within our operations group.

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Energy Efficient Semiconductors

Network of Champions
At ON Semiconductor, we have several employees who go beyond their everyday functions to educate, train and act as an ambassador inareas related to ethics, corporate social responsibility, culture, philanthropy and risk.

BUSINESS ETHICS LIAISONS (BEL)
How Many Are There:

52

What Regions Do They Support:

All major sites in North America, EMEA and Asia

Primary Responsibility:• Education and training on ethics initiatives, policies and procedures• Serve as a main contact for the ethics program to all employees at their site and act as a resource for
employees to ask questions or raise concerns• Promote an ethical culture across the company
CORPORATE SOCIAL RESPONSIBILITY (CSR) SITE CHAMPIONSHow Many Are There:

21

What Regions Do They Support:

All of our manufacturing sites in North America, EMEA and Asia

Primary Responsibility:• Support internal/external audits• Ensure site labor, ethics, environmental health and safety practices, policies, procedures and CSR management

systems fully comply to RBA Code of Conduct, key customers’ requirements and applicable national and local
legal requirements• Leads CSR activities at the site level (e.g. communications, training, etc.) and encourage sharing of bestpractices
CULTURE CHAMPIONSHow Many Are There:

90

What Regions Do They Support:

One champion each representing our human resources and business units at all major sites in North America,
EMEA and Asia

Primary Responsibility:• Implement culture roadmap at sites to meet the needs of colleagues and the broader ON Semiconductor
community• Coordinate and communicate culture activities and programs at sites in effort of creating a positive culture• Build strong interpersonal relationships, drive innovation and engage in collaboration/information sharing
GRANT ADVISORSHow Many Are There:

30

What Regions Do They Support:

All major sites in North America, EMEA and Asia

Primary Responsibility:• Educate employees about ON Semiconductor giving program and the company Foundation• Review philanthropic requests (employee donations, grant applications, etc.) to ensure they align with ourgiving principles• Communicate with employees and organizations on the final decision of request, as well as report quarterly
on designated region’s philanthropic activities
RISK CHAMPIONSHow Many Are There:

22

What Regions Do They Support:

22 functional groups across the company

Primary Responsibility:• Serve as risk management subject matter experts and lead risk management activities for their functionalgroups• Prepare enterprise risk management (ERM) reports for the board of directors, CEO and executive management• Promote ERM and instill a culture of risk awareness and discipline throughout the company

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Grace Wan | Business Ethics Liaison, Singapore“It is of great honor to be personally selected by the Company’s Ethics Committee to be a Business
Ethics Liaison (BEL) serving our regions in Singapore and Australia. A role that is not trainedby scripts and is open to anyone irrespective of their ranks within the Company.
Chosen for the special ‘something’ that each BEL uniquely has, that when thetime in need arises, one will go the extra mile to represent the voice of theemployee and to bring the issue to the right level of authority for action.”

Shaun Harry | CSR Site Champion, Nampa, Idaho“Being directly involved in the company’s social responsibility program. I am continually encouraged
to find ways to improve and expand our CSR standards. I ensure our local team has the necessary
information to collaborate and utilize the tools needed to be successful. Discussing strategies
with our other locations allows me to share my experiences and learn new methods
for CSR implementation. I am proud to see the positive impact of our commitment
and our team’s hard work to make our communities better.”

Pascal Vercruysse | Culture Champion, Oudenaarde, Belgium“The beauty of the culture alignment program is that it focuses on a number of universal humandesires. We all want to learn and develop, end each of us have the ability to teach something tosomeone else; I am confident that we all have ideas to improve our business. As a
Culture Champion, it is truly exciting for me to watch people pursue their passion
for teaching, discover new things, end to see people’s ideas illuminatedthrough workplace collaboration. I am optimistic this will lead to a stronger,
more cooperative global model.”ON Semiconductor

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Energy Efficient Semiconductors

Learning and Development[GRI: 205-2] [GRI: 404-2] [GRI: 412-2]

MissionDrive the skill development and effectiveness of our global workforce, throughinnovative learning solutions.
ON Semiconductor is committed to providing career advancement and development opportunities. Our employees are crucial to the successof our company and it is important for us to provide global programs that recognize, develop and enable our employees to grow. Our careerdevelopment philosophy is that employees own their careers by leveraging the programs, tools and resources available to them. Employees
are encouraged to collaborate with their manager to craft a personal development plan that aligns with their career goals.

Leadership Pathways Model
To help support the mission of our learning and development program, and to assist in one of our culture priorities of learning,
ON Semiconductor implemented our Leadership Pathways Model, which focuses on five pillars: 1) Leadership; 2) Change Readiness; 3)
Communication; 4) Diversity and Inclusion; and 5) Business Strategy. Whether an individual or a senior leader, all individuals at our global
sites have access to courses under each of the pillars. The graphic should be viewed from left to right to view.

Percipio
In addition to our variety of instructor-led trainings, we switched our e-learning platform from Skillsoft to Percipio, an intelligent learning
platform. Percipio empowers employees to take ownership of their development by offering a full range of videos, books and audiobooks
at their fingertips.

Leadership

Lead Leaders
Grades 16-18

Lead Teams
Grades 14-15

OnlineSelf-Directed
Learning

Lead
OthersLead
Self

Page 44LEAD
New Leader
Training

Professional
Development
SeriesLeadingGlobally

Leading
People&Business

ChangeReadiness
Leader as theSponsorof Change

Communication

Diversity &Inclusion

Business
Strategy

Advanced
Communication

BreakthroughLeadership

LeadingGlobally

Presentation
SkillsInclusive
Leadership

CriticalConversations

Unconscious
Bias

ChangeReadiness
Practitioner

Situational
LeadershipManagement
Essentials[Manufacturing]

Embracing
ChangeLeadership
Pathways
Model

Corporate Social Responsibility Reportwww.onsemi.com

Percipio offers:• Curated channels: Learners can access more than 50,000 pieces of content, which have been organized into 450 curated
channels or learning paths, making it easy for users to follow a clear and progressive learning process.
• Personalized homepage: Each user will have their own personalized homepage, giving them the ability to create playlists andpick up where they left off, and receive assignments.
• Micro-learning videos: There are a myriad of short (3-5 minutes) learning videos that provide targeted and focused learningfor specific tasks.

Compliance Training
Compliance training is required for new hires when they first join the company and for existing employees on an annual basis. Mandatory
courses cover topics including the Code of Business Conduct, corporate social responsibility, information security awareness, antidiscrimination and harassment, and non-retaliation. We also launched a set of targeted trainings to certain populations of employees,
including data privacy and compliance with U.S. export controls.

Compliance Training
CourseCode of Business Conduct
Corporate Social Responsibility
Information Security AwarenessAnti-Discrimination and Harassment
Non-Retaliation

Completion Rate
99.6%
(Asia: 23,264; Japan: 2,034, North America: 4,648; EMEA: 3,849)
99.6%(Asia: 23,202; Japan: 2,034; North America: 4,649; EMEA: 3,852)
99.6%(Asia: 23,190; Japan: 2,033; North America: 4,650; EMEA: 3,850)
99.6%(Asia: 23,643; Japan: 2,070; North America: 4,755; EMEA: 3,892)
99.6%(Asia: 23,643; Japan: 2,070; North America: 4,755; EMEA: 3,892

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

Executive Roundtable Program
The Executive Roundtable program was developed from the 2015 employee engagement survey feedback and is designed to support thecorporate initiatives around communicating strategy and strengthening career development. This program recognizes and supports highperforming employees by creating learning opportunities and providing them with exposure to the executive team. In 2019, we held threeroundtable sessions in Japan, Philippines and at our corporate headquarters in Phoenix, Arizona.

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Energy Efficient Semiconductors
Lean Six Sigma
M

OL

EFINE •

A

CONTR
•
VE

SURE • AN

LY

ZE • IMPRO• 110 employees trained in Lean
• 278 employees trained in LSS• 98 LSS projects completed•D

EA

Our Lean Six Sigma (LSS) program uses a structured methodology to improve business processes
by combining two approaches: Lean and Six Sigma. In 2019, our company shifted focus to include
more concepts from Lean – a continuous improvement philosophy that aligns people and processes
to enhance value to the customer while creating a culture of shared thinking, and engaging all
employees within an organization. To add a greater focus on Lean, our company developed andconducted new Lean training courses, conducted kaizen events (rapid improvement projects) andcreated an intranet site to document Lean projects and kaizen events. By shifting a greater focus
onto Lean, we will be able to maximize customer value while minimizing waste.
• $5.1 million USD in financial benefits• 73 LSS Belts certified

Employee Engagement
Since 2013, we have collaborated with National Business Research Institute (NBRI) on
a biennial basis to conduct a company-wide employee engagement survey to ensure
valid data gathering, analysis processing and survey results that truly represent the
feelings of our employees.
With this established cadence of deploying a full-census engagement survey, we sought to build on our data gathering effectiveness. To
ensure we remained focused on critical employee feedback and input from the 2017 full-census engagement survey, we introduced anabbreviated ‘pulse’ survey in 2018 inviting 5,000 employees to participate. In 2019, we expanded our pulse survey to be company-wide(approximately 32,000 employees invited) and are proud to have realized a 10-point increase in our overall score in the last four years. We
also had a 79% participation rate. Additionally, we measured employee sentiment on diversity and inclusion and our culture priority items.
This year, we have established a relationship with a new engagement partner, Willis Towers Watson (WTW). WTW offers impressive
thought leadership in the area of employee engagement. Additionally, they provide a robust survey model and platform that is a strong
enhancement to our employee listening strategy. All ON Semiconductor employees will
have the opportunity to offer their feedback via an enriched model when the 2020
full-census engagement survey is launched this fall.
Overall Engagement Performance
90%

Industry
Average50%

Industry
Average

Page 46

61%

2016

65%

69%

71%

2017

2018

2019

ON Semiconductor

75%

Stretch Best in
Performance Class

Corporate Social Responsibility Reportwww.onsemi.com
Performance Management and Employee Recognition[GRI: 404-3]

We strongly believe that setting clear performance expectations and goals lead to an overall improvement in business performance.
We encourage our managers to use a fair performance management process by setting clear expectations, delivering regular feedback,identifying career paths and development opportunities, properly evaluating performance, and clearly linking it to compensation andrecognizing and rewarding top performers. In 2019, all of our employees received a performance appraisal.
In order to recognize individuals and groups who make clear differences to our company and stakeholders, we offer our employees a varietyof reward and performance recognition programs. These programs include competitive base salaries, performance based cash and equity
awards, an employee stock purchase plan (subject to location), comprehensive health-care plans and company contributions to retirement
plans, which ensure our employees have the means to adequately prepare for life after ON Semiconductor.

Current Practice
Our Employee of the Year program, dating back to 2015, focuses on identifying and rewarding
top performers within our global organization. By continuously enhancing our culture ofrecognition, we are driving employee engagement, motivation, satisfaction and retention – allof which lead to the continued growth and success of the company.
In 2019, over 100 employees were nominated and 12 winners from North America, EMEA
and Asia were announced in early 2020. Winners received a bonus, trophy, certificate and an
Alaskan cruise for them and one guest. Runners-up received a bonus and a certificate.

Employee Benefits[GRI: 201-3]

The Paid Parental Leave of Absence Policy offers eligible employees up to eight weeks of time off at 100% of their regular base pay towelcome a new child (whether by birth or adoption), and is available to eligible employees in the U.S. This policy runs concurrently with
the Family Medical Leave Act and any state or other leave laws, which provide job protection to new parents. To learn more about benefits
offered by our company (such as paid time off, savings programs and healthcare options) to our employees globally, see our regional
benefits summaries online and 2019 SEC Form 10-K.

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Energy Efficient Semiconductors
Human Rights
Overview
Our formalized Human Rights Policy demonstrates our commitment to preserving, protecting and promoting thefundamental rights of others as reflected in the Responsible Business Alliance (RBA) Code of Conduct, Universal
Declaration of Human Rights, United Nations (UN) Guiding Principles on Business and Human Rights and UN Global
Compact to which we are a signatory. Our commitment to international human rights standards and local laws arerooted in our core values and reinforced through our Code of Business Conduct and other company policies.

Prevention of Slavery and Human Trafficking
To prevent slavery and human trafficking, we implemented our Slavery and Human
Trafficking Policy Statement, which ensures we are aware of and have a zero tolerance
toward human rights violations. We have implemented policies, procedures andmanagement systems to ensure that all work at our company is voluntary and thatworkers are legally entitled to leave the company without penalty. Our company also
ensures that workers are not required to hand-over government issued identificationand original work permits to our company or any of our labor agents. We train our humanresources staff and labor agents on the company’s practices related to anti-human trafficking
and conduct on-site 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 report any concerns they may have on human trafficking through our ethics
helpline, the global trafficking hotline at 1-844-888-FREE or emailing help@befree.org.

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

Health and Safety[GRI: 403-1] [GRI: 403-7] [GRI: 403-8]

Overview
Our health and safety programs are based on our company’s Environmental, Occupational Health and Safety(EOHS) Policy and are a priority at each of our sites. Establishing a healthy and safe environment allows our
employees to come to work each day without fear of injury or illness, and is vital to the quality of life of our employees and the success ofour business.

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Corporate Social Responsibility Reportwww.onsemi.com
Management Approach
Our environmental health and safety (EHS) management system ensures that EHS issues are identified, corrected and communicated to
management and corrected in both manufacturing and non-manufacturing situations. Our non-manufacturing sites follow our internal
procedures and local regulations related to health and safety, while our manufacturing sites conform to OHSAS 18001 specifications. In
2014, we implemented an external audit and certification to OHSAS 18001 and self-declaration of conformance by corporate audits andquarterly reviews. Approximately 82% of our workforce are covered by the OHSAS 18001 management system, which is audited bothinternally and externally for third-party certification. For a list of all our manufacturing sites with OHSAS 18001 certification, visit ourcertifications and qualified sites chart. Beginning in 2020, our sites will transition to the ISO 45001 workplace health and safety standard.

Safety Standards and Programs
Our safety standards are applicable to all global facilities and allow us to continuously maintain and improve health and safety work areas.
Procedures regarding emergency preparedness, hazardous materials, industrial hygiene and health resources and safety are standardized
throughout our company. To promote a transparent and reliable culture, information is shared with all sites to further mitigate healthand safety risks. Upon hire, all employees receive safety training and many receive additional safety training depending on their area of
responsibility and associated risks.
To protect our employees, we have a hierarchy of control-based risk analyses conducted by members of our EHS team members. Health andsafety risks are identified and addressed while considering factors such as processes and tasks, equipment and machinery, environment,
location and trends. Once risk exposures have been assessed and assigned a risk rating, a risk control plan is developed with key priority
areas for action and tested for effectiveness.
In 2015, we launched our safety culture transformational program and have since seen improvements in our performance. Through thisprogram, daily workplace safety inspections are performed by employees in their areas to ensure there are no unsafe conditions present.
Employees are also encouraged and trained to stop their work or the work of others, if an unsafe condition and/or act is observed.
Managers of departments discuss safety matters with their staff weekly and senior site managers are required to do so monthly. Employees
are encouraged to indicate safety issues or positive observations during these meetings. Additionally, we implemented a peer-to-peer job
safety review program in all of our factories so that employees can provide effective feedback to each other regarding unsafe habits, acts
or conditions.

Current Practice
ON Semiconductor’s Burlington, Canada site hit an incredible safety milestone on July4, 2019: 2,000 days without a lost workday accident or incident. This is equivalent
to over five years without a workplace reportable injury. This is a testament to ourcommitment to the motto “safety first and quality always.” It was an outstandingachievement and a celebratory lunch was held for the site employees.

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Energy Efficient Semiconductors
Within our safety culture program, there are five levels of safety that a manufacturing site can reach, one being the lowest and five thehighest. Each level has criteria that must be met in order to progress from one level to the next. In 2015, each of our manufacturing sites
started at level one. At the end of 2019, all sites confirmed that they were able to close out all of the improvement actions that wereidentified during the companywide safety culture audits that were performed in 2018. In 2020, empowerment of front-line leaders assafety champions will be our main point of focus in our safety culture program.
To embed a strong safety culture within our organization, employees are encouraged and incentivized to report unsafe acts or conditions
to their management, EHS department or our anonymous ethics helpline.

Health and Wellness[GRI: 403-3] [GRI: 403-6]

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

Health Programs
Physical Health

Medical Health

Emotional/Mental
HealthWe offer programs focused on nutrition, weight loss, physical fitness and the avoidanceof unhealthy habits like smoking, drinking and drug use. Several of our sites globally offer
subsidized gym membership plans, access to fitness classes and/or on-site gym facilities.
Some of our sites employ occupational health resource specialists while others have in-houseclinics. We also contract doctors in certain locations who provide services for employees.
We offer comprehensive health insurance plans and many of our sites organize annual
physicals and preventative health screenings. We abide by the European Union General Data
Protection Regulation (GDPR) to protect the privacy of all employees.
Our company has implemented employee assistance programs at many of our sites globally.
These programs allow individuals to consult with specialists as a first-line of support formental well-being matters. Some of our sites also offer ‘relax areas,’ which provide a rest andrelaxation space to help prevent issues caused by sedentary work and stress

Relax room in Roznov, Czech RepublicPage 50

On-Site Dental Clinic in
Carmona, Philippines

On-Site Gymnasium in Pocatello, Idaho, USA

Corporate Social Responsibility ReportOUR PLANET

Energy Efficient Semiconductors

OUR PLANET
Overview
We are committed to a greener world by keeping sustainability at the forefront of our operations. We work to reduce Scope 1 and 2
emissions, minimize the consumption of energy, save water and reduce chemical usage and waste generation. With an in-house teamdedicated to sustainability excellence, we have achieved marked successes within our many conservation programs, all of which are vitalto the success of our semiconductor device manufacturing business. We continually invest in engineering and administrative controls toprevent environmental pollution in the form of waste disposal, air emissions and industrial wastewater emissions; our company meetsor exceeds legal requirements for environmental protection. Air emissions and industrial wastewater effluent are treated using effective
technology and employees are trained to follow procedures, which prevent unnecessary damage to the environment.
As a sign of our commitment to sustainability, we adhere to an increasing number of laws and regulations including Restriction ofHazardous Substances (RoHS) and Registration, Evaluation and Authorization of Chemicals (REACH) within our own manufacturing
process as well as those of our suppliers. We continuously work with our suppliers to certify that our products are free from any restrictedmaterials and to ensure that all metals utilized in our products are sourced from conflict-free mines.

Management Approach

Global Environmental, Health and Safety

Our approach to environmental sustainability is guided by ourcompany’s Environmental, Occupational Health and Safety
Governance Structure(EOHS) Policy, which forms the basis from which our company
Board of Directors, Corporate GovernancePresident/CEO
implements, maintains and improves our environmental& Nominating Committee
management system. Procedures for our environmental
Global Environmental, Health & Safety Program Officemanagement system conform to the International Organizationfor Standardization (ISO) 14001 certification. Compliance with
Regional Environmental, Health & Safety
and certification to ISO 14001 provides us with a competitive(North America, EMEA, Asia)
advantage as we use our flexible manufacturing network to meetthe needs of customers around the world. As part of ISO 14001, we evaluate our environmental aspects including changes, planned or
new developments and activities in support of our operations and products. Our global EHS support group and manufacturing locations,which supply to customers, are also ISO 14001 certified. For a list of all our manufacturing sites with ISO 14001 certification, visit ourcertifications and qualified sites chart.

5% Chemical Consumption*5% absolute facility chemistry, 3% normalized manufacturing chemistry

5% Energy Consumption
5% Water Consumption
5% Carbon Emissions

Page 52

We implemented five-year targets on our environmental conservation
performance for our wafer fabrication facilities (fabs), and assembly
and test operation sites; for each of these goals, we use our 2015
performance as our baseline. We are working to develop appropriatescience based targets for our next environmental goal cycle.

Corporate Social Responsibility Reportwww.onsemi.com
2019 Sustainability Project Savings in $U.S.

$301,071$4,684,664

Energy Conservation
Water Conservation
Chemical Waste Reduction
Material Optimization
Recycle$315,919$343,442$5,253,198

Examples of Projects
Energy Conservation
Water Conservation
Chemical Waste
Reduction
Material Optimization
RecycleReducing electricity or fuels (i.e. natural gas, diesel fuel, propane)
Reducing water usage or recycling water
Reducing the amount of process and facility chemicals in production of our products
or performance of our facilities
Reducing the amount of material needed in the processing of our products (i.e. using
packaging more efficiently)
Diverting waste from landfill/incinerator to a more sustainable waste stream

Climate Change[GRI: 201-2]

We are aware of potential opportunities and risks associated with climate change and have integrated the processof climate change into our business operations and strategy in a number of ways. Through our environmental
conservation programs, we focus on reducing our carbon footprint and improving the electrical and fuel energy
efficiency of our company’s operations. Our products help contribute to climate-related reductions through ourpower management and energy efficient products. We also encourage our customers to include them in their designs. We educate andencourage our employees to live sustainably in their personal lives. We advocate that even small actions can make a difference. Our
enterprise risk management (ERM) and business continuity programs work in tandem. Identification and assessment of long-term climaterelated risks through the ERM program and implementation of continuity plans help mitigate short-term risks to our organization, affected
communities, operations, employees, stakeholders and strategic business objectives from climate change and/or natural disaster incidents.
In addition, increasing energy demands and greenhouse gas emissions are driving a global mandate for energy efficiency and reduced
emissions, including the replacement of fossil fuels by clean alternative energy sources. Government regulations for improved energy
efficiency in countries such as the U.S., United Kingdom, France and China are further enforcing this mandate. Fortunately, our comprehensive
portfolio of power, analog and intelligent sensors and connectivity products is designed to minimize power consumption and improveenergy efficiency. Examples of these products include solar inverters, efficient motors for fans, HVAC units, power tools, power conversion(as a part of the shift toward renewable energy), electric cars and the general movement from coal to renewables.

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

We are dedicated to reducing our energy consumption and overall carbon footprint by 5% from 2016 to 2020. We
have reduced emissions by 9,341 metric tons of CO2 equivalent through 35 projects in four countries in 2019. We
saw a rise in Scope 1 and 2 emissions normalized units (photo-moves for wafer fab operations, kWbonds for assembly
and test operations) in 2019 due to a decrease in these volumes, which negatively affected our performance.
Scope 1 & 2 Emissions at
Wafer Fab Operations[g CE/Unit] – Normalized Values
50

44.39

45
40

Scope 1 & 2 Emissions at
Assembly and Test Operations[g CE/Unit] – Normalized Values

280

276.53270

38.72 38.27 35.33 35.58

35261.69260

255.80

30
25

250

20

240.05 239.59

240

15
10

230

5
0

Baseline 2016 2017 2018 201920152020 Target

220

Baseline 2016 2017 2018 201920152020 Target

Our company also encourages employees toconsider the impact of everyday activities on theenvironment. We recognize that commuting canbe costly, and therefore try to reward employees
who take advantage of various commuting
options such as vanpooling, carpooling, bus orrail travel and bicycle use. Many of our global sites
offer various employee trip reduction plans andmonthly subsidies depending on location and local
regulatory trip reduction requirements. In 2019,
our employees in Phoenix, Arizona prevented
eight tons of pollution by using alternate modesof transportation. We also offer electric vehicle
charging stations for those who have electricvehicles.

Scope 1 & 2 Greenhouse Gases (GHGs) by Source

Million Metric Tonnes Carbon Equivalent

0.7
0.6

0.014
277

262

0.014

0.013

240

240

0.012

0.013

0.549
0.336

0.353

0.387

0.1
0.0

150

0.388

0.3
0.2

250

200

0.5
0.4

277

300

100

0.180

0.178

0.180

0.184

0.183

38.7

38.3

35.3

35.6

38.7

2015

2016

2017

2018

2019

Combustion Fuel [Scope 1 MMTCE]

PFCs [Scope 1 MMTCE]

50

g CE per Production Normalization Unit

0.8

0Electricity [Scope 2 MMTCE]

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

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Corporate Social Responsibility Reportwww.onsemi.com
Energy Consumption[GRI: 302-1] [GRI: 302-4]

Energy efficiency is central to the success of our products and operations.0.08
Along with our products, which help to reduce energy consumption,
0.069 0.065 0.057 0.060 0.068
we regularly implement energy conservation and consolidation projects.
Our total energy consumption was 1,747,719,766 (kWh), with
0.06
electrical and fuel consumption (from non-renewable resources) being 846,912 gigajoules. We saw a rise in electricity consumption
0.04
normalized units (photo-moves for wafer fab operations, kWbonds for assembly and test operations) in 2019 due to a decrease in these
0.02
volumes, which negatively affected our performance.
0.00

Baseline 2016 2017 2018 2019

Electricity Consumption at
Wafer Fab Operations

Electricity
Consumption at
20152020 Target
Assembly and Test
Operations

0.08

1.60

[kWh/Unit] – Normalized Values

0.069 0.065 0.057 0.060 0.068

0.06

1.55
1.50

1.40

1.458

1.500
1.386

1.421

1.35

Baseline 2016 2017 2018 201920152020 Target

1.30

Baseline 2016 2017 2018 201920152020 Target

1.555
1.458

1.500

1.45
1.40

1.555

1.45

0.02

1.60

1.55
1.50

0.04

0.00

[g CE/Unit] – Normalized Values

Current1.35Practice

1.386

1.421

1.30

Baseline 2016 2017 2018 20192015
Our manufacturing site in Suzhou,
China focused on an energy conservation project in 2019. Suzhou
2020 Target

reduced energy demand through operations focusing on actual terminal demand and seasonal temperature.
Energy reduction through actual terminal demand was achieved bypowering off idle machines, adjusting running quantity, loading rates
and optimizing the parameter. The total annual savings for thisproject is over $185,000, more than 32% of their original goal.

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Energy Efficient Semiconductors

Water Management[GRI: 303-1 – 3]

High purity water is a necessity for semiconductor manufacturing as it is used in delivering chemicals, washingwafers and many other operations within the fabrication process such as scrubbing the exhaust of our systems to
reduce pollution. When complete, the water used in these processes is discharged to waste treatment facilities as
non-hazardous industrial waste; most water is supplied to our facilities by third-party resources who report to withdraw from groundwateror surface water.
In an effort to identify and avoid negative water-related impacts, there are many tools and methodologies in use throughout our facilities
including laboratory analysis of both incoming and outgoing water from a facility. This analysis allows for the continued production of highpurity water and ensures against potential negative impacts regarding water waste discharge.
Another assessment used in identifying potential impacts is comparing our organization to common industry practices and standards.
Researching these practices and standards allows us to continue to modernize and develop our methodologies to increase efficiency anddecrease negative impacts on our water resources. We continuously work with process and facilities engineers to determine process needs,
understand the waste that is produced and effectively utilize our resources to focus on conservation, reduction of chemical usage andeffective treatment of water waste. We regularly interface with local regulatory agencies to ensure that usage of water resource and water
waste discharge is lawful and does not damage the environment.
We actively seek to avoid negative water-realted impacts. Our organization strives for transparency with stakeholders, displaying deliberatestewardship of water as the important resource it is. Following this, we firmly believe that reduction in water usage enables the sharedusage of water resources and reduces cost within process methods; therefore, we continue to seek out water recycling, reuse and reduce
options. Over the last several years, we have drastically decreased the amount of water consumed within our processes, and in 2019 wewere able to recycle 6,504 megaliters of water of the withdrawn 14,301 megaliters. That water recycled is the equivalent of approximately
2,500 olympic-sized swimming pools.

Water Usage at
Wafer Fab Operations[liter/Unit] – Normalized Values
0.800
0.700
0.600
0.500
0.400
0.300
0.200
0.100
0.000

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0.723 0.678 0.587 0.598 0.691

Water Usage at
Assembly and Test Operations[liter/Unit] – Normalized Values

13.00012.50012.00011.50012.662
12.061
11.49011.217 11.327

11.00010.500Baseline 2016 2017 2018 201920152020 Target

10.000Baseline 2016 2017 2018 201920152020 Target

Corporate Social Responsibility Reportwww.onsemi.com

Waste Management[GRI: 306-2] [GRI: 306-4]

Each of our manufacturing sites have projects that contribute to a reduction in waste. Someof these projects led to a reduction in chemical consumption or increase in recycling waste.
For example, our sites have implemented projects that expand the lifetime of cleaning baths,
modified processes to reduce the volume of chemicals per wafer, or installed mini pumps for optimal application of chemicals.
In 2019, the total amount of hazardous and non-hazardous waste that we recycled from our manufacturing and non-manufacturing sites
globally was 14,958,208 kilograms, while waste directed to landfill was 5,875,919 kilograms. Our total hazardous waste transported was
6,474,809 kilograms; this includes both solid and liquid waste, but does not include gaseous emissions, wastewater discharge or any waste
associated with on-site wastewater treatment.
Process Chemicals Usage at
Wafer Fab Operations[kg/Unit] – Normalized Values

0.00140.00130.00120.00130.00120.00120.00110.00450.00450.00440.00430.00100.00440.00430.00420.00420.00090.00410.00080.00410.00400.00070.0006[kg/Unit] – Normalized Values

0.00460.00130.0011

Process Chemicals Usage at
Assembly and Test Operations

Baseline 2016 2017 2018 201920152020 Target

0.0039Baseline 2016 2017 2018 201920152020 Target

Current PracticeAt our Bucheon, Korea manufacturing site, the equipment engineering team is utilizing
an additional 20% of LC-3200 bottles, saving 230 liters per year, approximately 68
bottles. This is an example of a project focused on material optimization and chemical
waste reduction.

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Reclaim and Recycle[GRI: 301-1]

Our global reclaim objectives reflect our commitment to environmental sustainability and resource conservation
while optimizing our network, protecting our intellectual property, and maximizing and re-capturing profits. Our
main reclaim center is located at our headquarters in Phoenix, Arizona, but some of our manufacturing sites also
reclaim and recycle their own materials. The manufacturing scrap, which is processed, can be broken down into two categories: precious
metal bearing material and non-precious bearing material.
Our take-back and recycle program provides our customers with an environmentally responsible solution for the return, recycling anddisposal of their products, including printed circuit evaluation boards. This program also helps ensure compliance with the current andforthcoming regional regulations involving
producer responsibility for the recycling and
Scrappeddevices
proper disposal of electronic waste products.
In 2019, approximately 910,000 kilogramsof scrap materials and 1,376 kilogramsof precious metals from our worldwide
manufacturing facilities, equivalent to
the weight of approximately 167 Africanelephants, were processed, sorted and soldfor reuse. The reclamation of these materials
recouped more than $22 million USD.

Printed circuitboardsPrecious Metal
Bearing Material

Platinumtargets andevaporator
metallic

Spent beadblast material

Gold targets,
wire andevaporator
metallic

Current Practice
In October 2019, the Arizona Recycling Coalition recognized their 2019 Grant, Scholarship andAward recipients at their annual awards luncheon. The celebration took place during the Solid
Waste Association of North America (SWANA)’s WASTECON conference at the Phoenix
Convention Center (SWANA is an organization of public and private sector professionals
committed to advancing solid waste management to resource management
through their shared emphasis on education, advocacy and research). At the event,
ON Semiconductor was honored with Recycler of the Year, Large Business Award forour recycling efforts at our ON Semiconductor Reclamation Center.

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Current Practice
ON Semiconductor was awarded the Award of Distinction by Arizona Forward, an organization devoted tosustainability progress for Arizona, for their outstanding contributions toward sustainability. Arizona Forwardcelebrated its 50th anniversary with the community during an awards gala in September 2019, which drewover 650 social influencers and innovators representing public and social interests. Award categories included:
the governor’s award for Arizona’s future; buildings and structures; site development and landscape; healthy
communities; technology innovation; art in public places; sustainability champion; and waste reduction.
This was the first year that ON Semiconductor applied for an Environmental Excellence Award. There were
12 nominees highlighting the private and public sectors of Arizona in thesustainability champion category. ON Semiconductor’s Award ofDistinction in this category is a spotlight on the ON Semiconductor
Reclamation Center and the fascinating ways they sort and dispose
2.5 million pounds of scrap materials annually.

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OUR COMMUNITY

www.onsemi.com

OUR COMMUNITY
Overview
At ON Semiconductor, we strive to make a positive impact in the communities where our employees work and live. Our financial contributions
and employee volunteer efforts target community needs in the areas of science, technology, engineering, arts and mathematics (STEAM)
education, health, disaster relief, environment and human services. Through our community initiatives, we aim to create a relationship ofmutual trust and respect between our company and the local communities in which we operate. The results of our community outreachprograms have led to a more engaged workforce, greener communities and swift disaster relief efforts as well as increased and more
equitable access to education, health care services and basic human necessities.
ON Semiconductor establishes long-term partnerships in the communities in which we operate. One example is our continued partnershipwith the Starkey Hearing Foundation, which began in 2008 and has been featured in previous CSR reports. The Starkey Hearing Foundation
has a mission to improve the lives of individuals, families and communities throughout the world with the provision of hearing aids.
Also, ON Semiconductor recognizes the need for a skilled and talented workforce, and began a partnership in 2017 with Arizona State
University, the nation’s leading university for innovation, to ensure a pipeline of engineering and business professionals and technologicaldevelopment continues to remain strong. Partnerships like these with the Starkey Hearing Foundation and Arizona State University are an
integral component to our business strategy and ensure we are making a positive impact in the communities in which we operate andaround the world.

ON Semiconductor Foundation
In February 2019, we established the ON Semiconductor Foundation, a nonprofit organization formed under the laws of the State of
Arizona. In January 2020, the ON Semiconductor Foundation began running and funding as a 501(c)(3) nonprofit organization. It isoverseen by an employee-based board of directors who manage its daily operations and approve recommendations made by our global
grant advisors. The creation of our Foundation converted the global corporate giving (GCG) program and employee volunteer program(EVP) to strategically leverage our resources, talent and efforts to support nonprofits and educational institutions around the world. In
2019, we invested over $2 million USD to support our communities worldwide.

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Since 2016, our company has funded more than $5 million USD in grants, employee matching and in-kind donations, as well as
sponsorships and dollars-for-doers for employee volunteerism. Through our diverse network of grant advisors, we are able to carefully selectour community partners based on need, while also taking into account cultural, institutional and operational differences across regions.
In order to achieve long-lasting economic value and social good, we rely on other stakeholder groups including executive leadership, thecompany’s board of directors, our employees, educational institutions and nonprofits. We engage these stakeholders on an on-going basis
to best understand how we can build stronger communities together.
For more information, visit our ON Semiconductor Foundation page.
Donations by Cause

Types of Donations

1%
5%
25%
56%
13%

STEAM Education
HealthHuman Services
Disaster Relief
Environment

54%

46%

Employee Driven
GrantsBrigitte Scheldewaert | Grant Advisor and Foundation Board Member, Oudenaarde, Belgium“I actively support the corporate social responsibility program, in addition to my daily job functions in theautomotive business unit, because it is my honest belief that this program is, and will continue to be, an
inseparable component of the overall service and product offering of our company. When I became part of the
global corporate giving team some years ago at the start up, I was not sure what to be expected. After a few
years, I feel so proud to be part of this team, it gave me the opportunity here in Belgium to pave the way for better
partnerships between business and civil society. Thanks to funding, we have been able to create partnerships
with schools in our region, introduce STEM projects in our primary schools with help of our own
engineers and support many local environmental and social projects. It is my personal belief
that we all have a responsibility to make this world a better place for the future and for ourchildren and our company is giving us all the opportunities to act as such.”

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Employee Volunteerism
We understand the importance of having our company and employees not only do well, but also do good. To encourage our employees tovolunteer their time, talent, energy and effort in the community, we introduced a paid employee volunteer program (EVP) in North America
in 2017. Through the EVP, employees may volunteer with organizations of their liking during company time for up to one day, traditionally
8–12 hours per year, while receiving their typical pay for the time spent. Additionally, employees are encouraged to participate in volunteer
events organized by our company. In 2019, many of our sites hosted days of service to offer both manufacturing and non-manufacturing
employees the ability to volunteer their time conveniently and in a meaningful way. To incentivize goodness, we also match our employees’
volunteer efforts through a dollars-for-doers program, currently offered only in North America.

Current Practice
For the past 10 years, ON Semiconductor and its compassionate employees have sponsored the Academia
Del Pueblo Elementary School in Phoenix, Arizona during the holiday season by providing a gift to each
student and their teachers. Academia Del Pueblo is funded and operated by Friendly House, a local
education and human services nonprofit organization that relies heavily on charitable donations.
Employees sponsored pre-k to fifth grade students by purchasing gifts, valued at $25 each, and someeven dressed up as Santa to deliver the presents to their classrooms! Students in grades six through eightcelebrated the holiday season with a morning full of fun and bowling, courtesy of ON Semiconductor.
Employees also sponsored these students with purchasing gift cards
valued at $25 each.
In total, over 420 children benefitted from this local
community outreach program and we had more than
35 employee volunteers assist with both activities in
December 2019.

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Community Impact – Asia Region
Orbis International – Health/Human Services
ON Semiconductor helped support Orbis, a leading non-governmentalorganization whose mission is to eliminate avoidable blindness indeveloping countries and to enhance their “Good Sight Good Life”
project. This project is helping to develop a vision center at Dong Nai
General Hospital, addressing visual impairments due to uncorrectedrefractive errors, with a special focus in children. Orbis facilitates thedelivery of skills, knowledge and resources necessary to provide quality
eye care. Orbis also provides hands-on ophthalmology training, assists
in strengthening healthcare infrastructures and advocates for eye care.
Quality eye care and treatment allows children to return to school andcaregivers to return to work.

Singapore Institute of Technology – STEAM Education
ON Semiconductor partnered with the Singapore Institute of Technology(SIT), founded in 2009, to provide scholarships to academically talented
students pursuing degree programs in engineering and information
technology. SIT integrates learning, industry and community. The funding
from ON Semiconductor provided partial scholarships to six honors
engineering students.

Lapu-Lapu Fire Aid – Disaster Relief
A massive fire broke out in Lapu-Lapu City, Philippines in July 2019, leaving over 600
families homeless. In September, employees at our site in Cebu partnered with the mayor of
Lapu-Lapu City and two barangay captains to give out relief donations such as hygiene kits
and five kilos of rice to the families affected by the tragedy.

Cebu Mangrove Planting – Environment
In April 2019, 80 volunteers from our Cebu, Philippines site planted
4,000 mangrove propagules in honor of Earth Day. This yearly activity
was led by an environmental health and safety manager, and wasaimed at reviving the country’s coastlines, which is key in preserving andprotecting the environment. Cebu is committed to reducing the effects ofglobal warming and helping the environment. Planting the propagules
helps prevent future environmental damage and build resiliency against
global warming.
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Community Impact – Europe Region
Het Ventiel – Health/Human Services
ON Semiconductor partnered with Het Ventiel, a nonprofit organization
in Belgium that is dedicated to helping those with early on-set dementia,
by donating two duo-bikes for participants of the program to utilize. Duobikes enable early dementia patients to continue cycling even when it
becomes too difficult or unsafe for them to do so on their own. The bikes,
which cost approximately $10,000 USD each, allow two people to ride
tandem, each at their own pace. The bikes also have the ability to be
used electrically. Research has shown the multiple benefits of exercise
for those with dementia and ON Semiconductor is honored to help those
suffering with this disease continue their active lifestyles.

STEM project De BroeBELschool – STEAM Education
ON Semiconductor helped fund a new STEAM program and project materials for the
BroeBELschool STEM Academy in Belgium. At the BroeBELschool, they focus on the total
development of the children. Through experiential learning, students discover their talents
and learn how to use them optimally. Their small, enthusiastic team works with students toconvey the material in a creative way. Through daily circle discussions, forum, working in thevegetable garden and BroeBEL parliament, they work on active citizenship on a daily basis.
Dialogue, participation, respect and well-being are essential soft skills of the program.

Salberghaus – Human Services
ON Semiconductor employees were able to donate over €2,800 (approximately $3,147 USD) to
the Salberghaus children’s home in Putzbrunn, Germany. The collection was part of their annual
holiday charity drive. The giving program expanded on this donation with an additional $3,000
USD contribution. The children’s home applied the donation toward a special play area for children
with severe respiratory conditions.

ZeroWaste Switzerland – Environment
ZeroWaste Switzerland is a nonprofit association recognized by the Swissgovernment as being vital for public interests. Through its activities and members,
it inspires and supports the population, businesses and public institutions in
Switzerland to reduce waste at the source. ON Semiconductor provided a grantin Q4 2019 to help them develop and test educational kits for use by children
in classrooms to introduce them to zero-waste concepts. The educational kits
included discovery sheets on subjects linked to waste and resources management,
creative workshops sheets linked to the subjects and recreational games to learn
by doing. Kits were initially launched in the canton of Geneva in late 2019 andcontinue to be tested in classrooms today.
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Community Impact – North America Region
Pocatello High School – STEAM Education
ON Semiconductor proudly funded microbiology research at Pocatello High School, located insoutheast Idaho. As part of a global initiative, Pocatello High School was one of only two highschools internationally who, alongside 21 university institutions, were selected to participate ina program in which students conduct research on antibiotic resistance. The ON Semiconductor
grant provided bacti-cinerators to sterilize reusable inoculating loops to reduce disposable waste,
a minus 80 degree freezer for bacteria preservation and infinite duplication, lab glassware and all
the variety of agars the students were using to elicit growth of certain types of bacteria from soil.
These funds also assisted with the purchase of protective gear for the students and faculty, new lab
equipment (including microscopes and slides) and lab furniture, including chemical resistant tables
and fume hoods. The donation from ON Semiconductor helped transform an under-utilized science
space into a biosafety level two lab.

Human Solutions – Human Services
Human Solutions is a charitable organization based in East Portland/East Multnomah
County, Oregon, that collaborates with people and communities affected by poverty byproviding affordable housing and community assets to neighborhoods in the area. With
the assistance of a grant from our global giving program, the Parkside 106 project wasable to break ground on the building of 75 new rental properties, providing housing to
low-income individuals and families struggling with housing security and poverty. The
building also plans to house a service center and anchor office providing community
services and administrative support. Human Solutions projects that approximately
8,000 people will take part in the housing and income security programs provided through this development project when completed
in June 2021.

Gulf of Maine Research Institute: LabVenture Program – STEAM
Education/Environment
The Gulf of Maine Research Institute (GRMI) LabVenture Experienceteam transports fifth and sixth grade students from across the state ofMaine to their research facility, and allows them to conduct hands-on
research in GMRI’s state of the art learning laboratory, the Cohen Center
for Interactive Learning. Each year, GMRI brings approximately 10,000
students, to the facility and provides a comprehensive half-day field tripthat includes transportation, free of charge. The LabVenture program hasrelied solely on corporate and community funding since its inception in2005. ON Semiconductor has been a supporter of the program since 2009 and most recently awarded LabVenture a grant in Q2 2019. The
funding allowed GMRI to renovate the lab space and revamp the entire program and experience with refreshed content.

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Misericordia University – STEAM Education/Environment
Misericordia University, located in Dallas, Pennsylvania is a private, liberal arts institution, witha focus area in science, technology, education and math (STEM) education. They partnered with
Lehman Sanctuary, a 17-acre property that engages and educates students and the community
with nature. The grant from ON Semiconductor helped Misericordia purchase the water monitoring
equipment, which is being used for research with the students. With this, the students use
sophisticated equipment to gather at local rivers, lakes and streams to increase awareness on
the importance of water quality. This contribution also helped them purchase three microscopes,
which were donated to a local STEM academy. Misericordia University anticipates offering fourhigh school students from the academy the opportunity to participate in a one-week researchinternship experience during summer 2021 following facility renovations.

ON Semiconductor

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Appendix
List of Acronyms
3TG

Tantalum, tin, tungsten and gold

8D

“8 disciplines” of problem solving

ACEEE

American Council for an Energy-Efficient Economy

ADAS

Adaptive Driver Assistance Systems

APAC

Asia-PacificBack-End, assembly Manufacturing facility that produces finished producttest or subcon (BE) in the package and testing services

NBRI

National Business Research Institute

OHSAS

Occupational Health and Safety Assessment Series(OHSAS 18001)

OECD

Organisation for Economic Co-operation andDevelopment

ONSC

Manufacturing site located in Shenzhen, China

ONSZ

Manufacturing site located in Suzhou, China

BEL

Business Ethics Liaison

OSPI

Manufacturing site located in Cebu, Philippines

CEO

Chief Executive Officer

OSV

Manufacturing site located in Bien Hoa, Vietnam

CFSI

Conflict Free Sourcing Initiative

PAC

Political Action Committee

CSR

Corporate Social Responsibility

Ppb

Parts Per Billion

COO

Chief Operating Officer

PFCs

Perfluorinated Compounds

D&I

Diversity and Inclusion

R&D

Research and Development

DJSI

Dow Jones Sustainability Indices

RBA

Responsible Business Alliance

DMAIC

Define, Measure, Analyze, Improve and Control

REACH

DRC

Democratic Republic of the Congo

Registration, Evaluation and Authorization ofChemicals

EHS

Environmental Health and Safety

RMAP

Responsible Minerals Assurance Process

EMEA

Europe, Middle East and Africa

RMI

Responsible Minerals Initiative

ERM

Enterprise Risk Management

RoHS

Restriction of Hazardous Substances

EuP

European Energy Using Products

SAQ

Self-Assessment Questionnaire

EVP

Employee Volunteer Program

SCCE

Society of Corporate Compliance and Ethics

Front-End (FE),fab or foundry

Refers to anything that is processing on a full wafer

SDGs

Sustainable Development Goals

SEC

Securities and Exchange Commission

GCG

Global Corporate Giving

SECs

Solutions Engineering Centers

GDPR

General Data Protection Regulation

SIA

Semiconductor Industry Association

GEO

Global Educational Opportunities

SiPM

Silicon Photomultipliers

GHG

Greenhouse Gases

SoC

Systems on Chip

GRI

Global Reporting Initiative

SPAD

Single Photon Avalanche Diode

HCCA

Health Care Compliance Association

STEAM

Science, Technology, Engineering, Arts, Mathematics

IoT

Internet of Things

ISMF

Manufacturing site located in Seremban, Malaysia

STEM UP

Science, Technology, Engineering and Mathematics
for Under-represented Populations

ISO

International Organization for Standardization

UN

United Nations

KPI

Key Performance Indicator

UNGC

United Nations Global Compact

L&D

Learning and Development

VAP

Validated Assessment Program

LSS

Lean Six Sigma

WMEWorld’s Most Ethical Company

MTCE

Metric tons of carbon equivalent

WSC

World Semiconductor Council

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Memberships and External Initiatives[GRI: 102-12] [GRI: 102-13]

Externally developed economic, environmental and social
charters, principles, or other initiatives to which we subscribe
or endorse:• Association of Corporate Citizenship Professionals• Arizona Environmental Strategic Alliance• Arizona Forward• Arizona Recycling Coalition• Arizona Tax Research Association• Boston College Center for Corporate Citizenship• Carbon Disclosure Project• Chief Executives for Corporate Purpose (CECP)• China Power Supply Society• Conference Board – Philanthropy and Engagement Council• Corporate Secretaries and Governance Professionals• Corporate Volunteer Council of Central Arizona• Council on Foundations• The East Valley STEM Alliance• Electronic Components Industry Association• Ethisphere’s Business Ethics Leadership Alliance (BELA)• Europe’s Energy for Green Society ENIAC JU Project• Greater Phoenix Chamber of Commerce• Greater Providence Chamber of Commerce• Global Energy Research Initiative• Global Semiconductor Alliance• Hearing Industries Association• Mactan Export Processing Zone Chamber of Exporters andMemberships with position on governance body:• China International Semiconductor Executive Summit (CISES), Mark
Goranson, advisory board member• Electronic Components Industry Association (ECIA), Jeff Thomson,
member of board of directors• Fab Owners Association, John Spicer, member of board of directors• Global Semiconductor Alliance, Bill Schromm, member of board of
directors• JEDEC, Mark Wasilewski, member of board of directors• Mactan Export Processing Zone Chamber of Exporters andManufacturers (MEPZCEM), Lilith Montayre, member of board of
directors• Semiconductor Industry Association (SIA), Keith Jackson, 2020 SIA Chair• Semiconductor Industry Association Communications Committee, Kris
Puglsey, chair• Semiconductor Industry Association Public Policy Committee, Daryl
Hatano, chair• World Semiconductor Council, Daryl Hatano, co-chair U.S. delegation to
joint steering committee

Organizations for which we are a founding member:• CEB Compliance & Ethics Leadership Council• CSR Board

Manufacturers (MEPZCEM)• Malaysian Institute of Integrity and Corporate Integrity Pledge• Manufacturer Alliance for Productivity and Innovation• Microelectronic Industry Design Association (MIDAS) Ireland• Motor Equipment Manufacturers Association/ Original Equipment
Suppliers Association (MEMA/OESA)• National Association of Corporate Directors• Pocatello Chamber of Commerce• Power Sources Manufactures Association (PSMA)• Responsible Business Alliance (RBA) and their Environmental

Sustainability and Conflict Minerals groups• Responsible Minerals Initiative (RMI)• SEMI• Semiconductor Electronic Industries in Philippines Inc. (SEIPI)• Semiconductor Industry Association (SIA)• Society of Corporate Compliance and Ethics• Sustainability Reporting Group, American Council for an Energy-Efficient
Economy (ACEEE)• United Nations Global Compact• United States Information Technology Office• World Semiconductor Council (WSC)

ON Semiconductor

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Awards and Recognition:• 2019 Electron D’Or Award “Connected Objects/Intelligent Building”• 2019 Forbes 100 Fastest-Growing Companies, ranked #40• 2019 Forbes Fortune 500, ranked #485
• 2019 IoT Global Award (shortlist)• 2019 IoT World Best-in-Show Award• 2019 Gold Stevie Winner for Great Employers• Arizona Forward: 2019 Award of Distinction• Arizona Recycling Coalition: 2019 Recycler of the Year
• Barron’s 100 Most Sustainable Companies, ranked #15• Best Employer Brand Awards by Advisory Board and Jury Team of the Employer Branding Institute of India and the World HRD
Congress• Bucheon’s Best Employer• Corporate Knight’s Carbon Clean200, ranked #198
• Dow Jones Sustainability Indices – North America Index• EcoVadis Gold Level CSR Rating• FMM Excellence Award• FMM Negeri Sembilan S.H.E. Excellence Award• International Association of Business Communications (IABC) Silver Quill Award• Internet-of-Things Product Innovation Award (shortlist)• IoT Breakthrough: IoT Sensor Company of the Year
• IoT Star Award: Most Influential IoT Sensor Company of 2019
• Just Capital, ranked #144
• LEAP Award• Malaysia AMCHAM CARES Award• MarCom Award (two platinum, three gold, two honorable mentions)• MOSHPA (Malaysian Occupational Safety and Health Practitioners’ Association) Award• Newsweek’s America’s Most Responsible Companies, ranked #32• Outstanding CSR Award by Municipality of Carmona (Philippines)• Philippines Best Companies to Work for in Asia by Business Media Incorporated• Phoenix Business Journal - #20 Largest Phoenix-area Corporate Philanthropists• Phoenix Business Journal - #21 Largest Phoenix-area Corporate Volunteer Programs• Seleizione di Elettronica Innovation Award• Semiconductor Product of the Year – Analogue (shortlist)• SPDEI Award (French Council For Distribution of Electronique)• VOKA: Flanders' Chambers of Commerce and Industry: Charter Sustainable Entrepreneurship• World Finance: 2020 Most Sustainable Company in the Semiconductor Industry• World’s Most Ethical Companies

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

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

A
Open-Door
PolicyB

E

Internal
Communication

Training(Newsletter,
Messages,
Intranet)

Internal
Stakeholder
Engagement

D

C

Performance
Appraisals

Employee
SurveysA. We maintain an open-door policy, allowing employees to communicate and engage with management staff and humanresources.
B. Our employees globally are trained in our Code of Business Conduct, policies and programs including corporate social
responsibility, prevention of discrimination and harassment, anti-corruption and information security awareness.
C. We conduct anonymous employee engagement and pulse surveys to seek employees’ opinions on topics such as work
environment, work relationships, job responsibilities, etc. We also administer other surveys on our compliance and ethics
program, diversity and inclusion and quality.
D. We have an objective and fair performance management process, which all employees are a part of on an annual basis.
E. We communicate with our employees through various mediums including town halls, all hands meetings, use of ourintranet, internal communication messages, social media, blog posts and monthly newsletters.

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Energy Efficient Semiconductors

A
J

Customer
Scorecards

Reporting

B

Quarterly
Business
ReviewC

I

Customer
Satisfaction
SurveyInvestor
Relations

External
Stakeholder
Engagement

HD
Ask anExpert Forum

Community
Engagement

E

G
Public Policy
AdvocacyF
Supplier Due
Diligence

Industry
Associations,
Conferences,
Trade Shows

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

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Material Topics[GRI: 102-47] [GRI: 103-1]

We engaged executive staff, employees, customers and suppliers to determine the materiality of economic, environmental and social issues.
The issues presented in our materiality matrix were narrowed down based on our knowledge of the industry, as well as sustainability trends.
While all fourteen issues are ultimately considered to be of high importance to our stakeholders and business operations, certain issues are
more significant than others are. We address the fifteen high-priority issues rated by our stakeholders in this report and will continue tofocus on these important topics through our business operations.

ON Semiconductor’s Materiality Matrix

Worker H&S
Business ethics

Importance to Our Stakeholders

Water management

Conflict minerals

Waste
management

Air emissions

Human rights

Energry efficient
products

Cost effectivenessInnovation
Career development
Community engagement

Economic performance

Diversity

Economic
Environmental
SocialImportance to Our Business

ON Semiconductor

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Energy Efficient Semiconductors

Aspect Boundaries[GRI: 102-46] [GRI: 103-1]
Boundaries
Report Overview

Category

GRI Material Aspect

Internal

External

Entities Impacted

Acquisitions

Economic

No corresponding GRI material aspect

X

X

All sites, customers and suppliers

Scope 1 and 2 Emissions

Environmental

Emissions

X

X

Manufacturing sites and local environment

Business Ethics
Learning and Development
Community Engagement
Conflict Minerals and Cobalt
Cost Effectiveness
Diversity

Economic
SocialSocialSocial–SocialNo corresponding GRI material aspect
Training and education
Local communities
Human rights assessment
No corresponding GRI material aspect
Diversity and equal opportunity

X
X
X
X
X
X

X

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

Economic Performance

Economic

Economic performance

X

Energy Efficient Products

Environmental

EnergyX

X

Human Rights
Innovation
Waste Management
Water Management
Worker Health and Safety

Social–Environmental
Environmental
Environmental

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

X
X
X
X
X

X
X
X
X

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X
X
X

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

Corporate Social Responsibility Reportwww.onsemi.com

People, Planet, Profit Report
People

2019

2018

2017

Women in Our Global Workforce

44%

45%

47%

Women in Our Global Management

20%

20%

20%

Women Promoted in Our Global Workforce

35%

25%

35%

Women on Our Board

20%

20%

11%

• American Indian or Alaskan Native

0.3%

0.3%

0.3%

• Asian

19.4%

17.2%

15.4%

• Black or African American

1.7%

1.6%

1.4%

• Hispanic or Latino

4.6%

4.6%

4.2%

• Native Hawaiian or Other Pacific Islander

0.2%

0.2%

0.4%

• Two or More Races

2.1%

1.9%

0.7%

• White

61.8%

64.1%

64.1%

Ethnic Diversity in Our Workforce (U.S. only)

9.9%

10%

13.7%

0.77/1.30

1.03/2.2

0.99/2.29

000Sourcing From Smelters That are RMAP Conformant/Human Rights Compliant

100%

100%

99.6%

Planet

2019

2018

2017

Waste Reused/Recycled (kg-millions)

14.96

10.53

13.52

Waste Directed to Landfill (kg-millions)

2.08

3.29

4.86

Hazardous Waste Transported (kg-millions)

8.34

6.34

6.35

Reclaimed Scrap Metals (metric tons)

910

1,150

1,147

Reclaimed Precious Metals (kg)

1,376

822

609

Water Withdrawn (liters-billions)

14.3

12.5

12.7

Water Recycled/Reused (liters-billions)

6.50

5.46

5.33

Total Energy Consumption (kWh-billions)

1.74

1.54

1.46

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

1.51

1.34

1.28

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

846

715

648

Direct Emissions (Scope 1) (MTCO2)

2,067,983

1,412,218

1,416,622

Indirect Emissions (Scope 2) (MTCO2)

671,922676,060

649,589

Profit

2019

2018

2017

Revenue ($ billions)

$5.50

$5.90

$5.50

Earnings per share

$0.52

$1.48

$1.92

Sustainability savings ($ millions)$10.80$7.30$10.10Total new hires (job growth)

3,829

5,342

7,620

Reclaimed scrap materials/precious metals ($ millions)

$22

$29

$26.60• Undeclared
Safety - injury Rate/Lost Work Days (per 100 employees)
Work-Related Fatalities

ON Semiconductor

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Energy Efficient Semiconductors

Additional Data
2019 Workforce Statistics[GRI: 102-7] [GRI: 102-8] [GRI: 401-1] [GRI: 405-1]
Gender
Total
Contractors andInterns

3,812

Regular Employees

31,395Full Time Employees

34,951

Part Time Employees

256

Total New Hire

3,829

Total Turnover

4,220

Age Group

RegionAsia

MF<30 Years

30-50 Years

50+ Years(Excluding Japan)

Japan

Americas

EMEA

1,817
48%
17,94257%
19,607
56%
152
59%

1,995
52%
13,45343%
15,344
44%
104
41%

1,462
38%
8,881
28%
10,214
29%
129
50%

2,216
58%
17,42156%
19,569
56%
68
27%

134
4%
5,093
16%
5,168
15%
59
23%

3,321
87%
20,95967%
24,230
69%
50
19%

240
6%
1,848
6%
2,068
6%
2
1%

119
3%
4,703
15%
4,791
14%
31
12%

132
4%
3,885
12%
3,844
11%
173
68%

2,405
63%
2,173
51%

1,424
37%
2,047
49%

2,088
55%
2,069
49%

1,518
40%
1,679
40%

223
5%
472
11%

2,656
69%
3,065
73%

140
4%
90
2%

722
19%
707
17%

311
8%
358
8%

2019 Health & Safety Statistics[GRI: 403-2]
Type of Injury

Rate (%)

Abrasion

15.7%

Contusion

17.1%

Cumulative Stress Disorder

2.8%

Cut

6.0%

Inflammation

3.2%

Irritation

9.7%

Laceration

9.3%

Respiratory Disorder

2.8%

Sprain13.0%

Strain or “torn muscle”

11.6%

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2019 GRI Content Index[GRI: 102-55]
GRI Standard

Disclosure

Cross reference or Answer

Additional Notes

GRI 102: General Disclosures 2016*
102-1

Name of organization

Our Business: Overview – page 11102-2

Activities, brands, products and services

Our Business: Overview – page 11

102-3

Location of headquarters

Our Business: Overview – page 11

102-4

Location of operations

Our Business: Worldwide Locations – page 11

102-5

Ownership and legal form

Our Business: Overview – page 11102-6Markets served

Our Business: Financial Strength – page 12

102-7

Scale of organization

Our Business: Customers – page 14

102-8

Our People: Overview – page 35(a) Total number of employees

Appendix: Additional Data – 2019 Workforce
Statistics – page 76(b) Total number of operations

51(c) Net revenue

Our Business: Financial Strength – page 12(d) Total capitalization in terms of debt andequityTotal liabilities: $5,101.4 million USD(e) Quantity of products provided

Our Business: Brand – page 13

Information on employees and other workers

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

Total equity: $3,324.1 million USD
Appendix: Additional Data – 2019 Workforce
Statistics – page 76(a) Total number of employees by employment
contract and gender

Appendix: Additional Data – 2019 Workforce
Statistics – page 76(b) Total number of employees by employment
contract and region

Appendix: Additional Data – 2019 Workforce
Statistics – page 76(c) Total number of permanent employees by
employment type and gender

Appendix: Additional Data – 2019 Workforce
Statistics – page 76(d) Whether a substantial portion of theorganization’s workforce is performed byworkers who are legally recognized as
self-employed, or by individuals other thanemployees or supervised workers, including
employees and supervised employees bycontractors

No(e) Report any significant variations in employee
numbers

N/A

102-9

Description of supply chain

Our Business: Responsible Sourcing – page 21102-10Significant changes to organization and supply chain

Our Business: Responsible Sourcing – page 21102-11

Precautionary principle approach

Our Business: Enterprise Risk Management –page 18

102-12External initiatives

Appendix: Memberships and External Initiatives– page 69

102-13

Membership of associations

Appendix: Memberships and External Initiatives– page 69

102-14

Statement from senior decision-makerA Letter from Our President and CEO – page3

102-15

Key Impacts, risks and opportunities

For details on key impacts, risks andopportunities see our 2019 SEC Form 10-K.

* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

ON Semiconductor

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Energy Efficient Semiconductors

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

Cross reference or Answer

Additional Notes

Engineering a Better Tomorrow – page 6
Our Business: Mission and Vision – page 15
Our Business: Core Values – page 15
Our Business: Our Culture – page 17
Our Governance, Ethics and Compliance:
Compliance and Ethics Programs – page 27

102-17

Mechanisms for advice and concerns about ethics

Our Governance, Ethics and Compliance:
Compliance and Ethics Programs – page 27

102-18Governance structure

Engineering a Better Tomorrow – page 6
Our Governance, Ethics and Compliance:
Overview – page 26
Please see our 2020 Proxy Statement for
additional details

102-19Delegating authority

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

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

Chief operating officer and chief finance officer

102-21

Consulting stakeholders on economic, environmental
and social topics

Appendix: Stakeholder Engagement – page 71

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

Our Governance, Ethics and Compliance:
Overview – page 26
Please see our 2020 Proxy Statement for
additional details

102-23Chair of the highest governance body

Alan Campbell, chairman of the board of
directors

102-24

Nominating and selecting the highest governancebody

Please see the roles and responsibilities of our
Corporate Governance and Nominating (CGN)
Committee in our 2020 Proxy Statement.

102-25

Conflicts of interest

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

102-26

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

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

102-27

Collective knowledge of highest governance body

The CGN Committee has the specificresponsibility to encourage and facilitate
Directors’ continued education. See our 2020
Proxy Statement for additional details.

102-28

Evaluating the highest governance body’s
performanceSee page 26 of our 2020 Proxy Statement for
information on board of directors self-evaluation.
In 2019, the board continued an annual peerto-peer evaluation to obtain information about
each director’s performance, contributions andeffectiveness during the previous year.

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

For details on the role of our board of directors
in having oversight of our environmental, socialand economic impacts please see management
approach sections of this report and our 2020
Proxy Statement.

102-30Effectiveness of risk management processes

Our Business: Enterprise Risk Management –page 18* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

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Disclosure

Cross reference or Answer

102-31GRI Standard

Review of economic, environmental and social topics

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

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

While our board of directors do not have
responsibility over our sustainability reporting,the various groups contributing to andrepresented in this report, report to thecompany’s board of directors.

102-33

Communicating critical concerns

Critical concerns are communicated during
regular (quarterly) and special (interim) meetings
with the board of directors. We allow special
meetings for our stockholders as outlined in our2020 Proxy Statement.

102-34Nature and total number of critical concerns

See page 31 of our 2020 Proxy Statement.

102-35

Remuneration policies

For details on our compensation objectives andpolicies please see page 40 of our 2020 Proxy
Statement.

102-36

Process for determining remuneration

Internal compensation staff and hiring manager
determine appropriate base pay using the market
median (or P50), our established salary ranges
and internal comparisons.

102-37

Stakeholders’ involvement in remuneration

N/A

102-38Annual total compensation ratio

Belgium: 5:1

Additional Notes

China: 33:1
Czech Republic: 10:1
Hong Kong: 4:1
India: 5:1
Japan: 6:1
Korea: 9:1
Malaysia: 42:1
Philippines: 66:1
Singapore: 6:1
Taiwan: 4:1
Thailand: 3:1
U.S. 11:1
Vietnam: 38:1
102-39Percentage increase in annual total compensation
ratio

Belgium: 1:1
China: 0.7:1
Czech Republic: 0.9:1
Hong Kong: 0.9:1
India: 0:1
Japan: 1.4:1
Korea: 0.7:1
Malaysia: 0.5:1
Philippines: 0.9:1
Singapore: 1.06:1
Taiwan: 0.5:1
Thailand: 1.1:1
U.S.: 1:1
Vietnam: 1:1* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

ON Semiconductor

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Energy Efficient Semiconductors

GRI Standard

Disclosure

Cross reference or Answer

102-40

List of key stakeholder groups

Appendix: Stakeholder Engagement – page 71

102-41

Percentage of total employees covered by collective
bargaining agreements

Belgium: 100%Additional Notes

China: 100% (manufacturing only)
Czech Republic: 100%
France: 100%
Japan: 77%
U.S.: 40% (Mountain Top, PA manufacturing)
Vietnam: 99.89%

102-42 – 102-43

Identifying and selecting stakeholders; Approach to
stakeholder engagement

Appendix: Stakeholder Engagement – page 71

102-44

Key topics and concerns raised

Appendix: Stakeholder Engagement – page 71

102-45

Entities included in the consolidated financial
statements

See Reporting Segments and Manufacturing Sites
and Principles of Consolidation in our 2019 SEC
Form 10-K.

102-46

Defining report content and topic boundaries

About This Report – page 5

102-47

List of material topics

Appendix: Material Topics – page 73

102-48

Restatements of information

Appendix: People, Planet, Profit Report – page 75

102-49Changes in reportingNone

102-50

Reporting period

2019 calendar year

102-51

Date of most recent reportJun-19102-52

Reporting cycle

Annual102-53

Contact point for questions

Appendix: Contact Us – page 87

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

About This Report – page 5

102-55GRI Content Index

Appendix: 2019 GRI Content Index – page 80

102-56External assurance

About This Report – page 5

Appendix: Aspect Boundaries – page 74

GRI 103: Management Approach 2016*
103-1

Explanation of material topics and boundaries

Appendix: Material Topics – page 73
Appendix: Aspect Boundaries – page 74

103-2

Management approach for material topics

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

103-3

Evaluation of management approach

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

GRI 201: Economic Performance 2016*
201-1

Direct economic value generated and distributed(EVG&D)

Our Business: Financial Strength – page 12(a) Direct economic value generated

Proceeds from sale of property, plant andequipment $1.9 million USD(b) Economic value distributed

Cost of revenue: $3,544.3 million USD
Operating cost: $1,540.9 million USD
Cash paid for interest: $97.2 million USD
Cash paid for taxes: $62.9 million USD

201-2(c) Economic value retained

Net Income: $195.3 million USD(d) EVG&D by country, regional, or market levels

See Revenue and Segment Information and
Results of Operations in 2019 SEC Form 10-K

Financial implications and other risks andopportunities due to climate change

Our Planet: Climate Change – page 53* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

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201-3

201-4

Disclosure

Cross reference or Answer

Defined benefit obligation plans and otherretirement plans

Our People: Employee Benefits – page 47

Financial assistance received from government

Net operating loss and tax credit carryforwards:$612.9 million USD

Additional Notes

For additional details, see our Regional Benefits
Summaries and 2019 SEC Form 10-K.

GRI 202: Market Presence 2016*
202-1

202-2

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

All ON Semiconductor employees arecompensated at or above minimum wage.
Minimum wage in all listed regions is gender
neutral.

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

“Other workers” in this case pertain to
employees of our suppliers or on-site service
providers (e.g. janitorial staff, cafeteria workers,
security, etc.). We conduct risk assessments and/or on-site verification of suppliers and on-site
service providers to ensure that RBA standards
and legal requirements are being met, including
those related to minimum wage.

(c) Definition used for “significant locations ofoperation”

Manufacturing locations(a) Proportion of senior management hired fromthe local community

Belgium: 100%
Canada: 100%
China: 57%
Czech Republic: 100%
Japan: 100%
Korea: 100%
Malaysia: 89%
Philippines: 80%
United States: 95%
Vietnam: 75%(b) Definition used for “significant locations ofoperation”.

Asia/Japan/EMEA: Manufacturing locations
North America: Locations that include design
centers, solution engineering centers, andmanufacturing facilities

GRI 203: Indirect economic Impact 2016*
203-1 – 203-2

Infrastructure investments and services supported;
significant indirect economic impacts

N/A

GRI 204: Procurement Practices 2016*
204-1

Proportion of spending on local suppliers

Our Business: Responsible Sourcing – page 21

GRI 205: Anti-corruption 2018*
205-1

Operations assessed for risks related to corruption

All factories are assessed for risks related tocorruption through the RBA self-assessment
questionnaires (SAQ), RBA internal audits or RBA
validated assessment program (VAP) audits.
In addition to our responsibilities as a RBA
member, we also conduct internal anti-corruption
risk assessments, which factor in our global
operations, geographic footprint, customers andbusiness partners.
Certain teams, sites and business partners haveheightened levels of risk based on location,functional role and extent of interaction withgovernment parties.

* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

ON Semiconductor

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GRI Standard
205-2

Disclosure

Cross reference or Answer

Additional Notes

Communication and training about anti-corruption
policies and procedures

Our People: Learning and Development – page 44

Annual Code of Business Conduct training
includes the topic of anti-corruption in 2019.

All 10 members (100%) of the board of directors
have received materials communicating thecompany’s anti-corruption policy. Members arelocated in Asia, North America and Europe.

The 10 members reflect the board of director
count in 2019.

Select suppliers, customers and other business
partners receive notice of our anti-corruption
policy through anti-corruption due diligencequestionnaires and surveys. In addition, in
December 2019 we sent a letter to all 19,740
suppliers regarding our gift policy.
205-3

Confirmed incidents of corruption and actions taken

Specific legal prohibition

Attorney client privileged information

GRI 206: Anti-Competitive Behavior 2016*
206-1

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

None

GRI 301: Material 2016*
301-1

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

Our Planet: Reclaim and Recycle – page 58

We spend over $1 billion USD on various
parts and raw materials as we manufacture
both at internal and external sites. We do nottrack or estimate the raw material used in key
manufacturing locations.

GRI 302: Energy 2016*
302-1

Energy consumption within the organization

Our Planet: Energy Consumption – page 55

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

302-2

Energy consumption outside the organization

N/A

Not evaluated

302-3

Energy intensity ratio for organization

Wafer fab energy (electricity) normalization =0.083 kWh per unit

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

Assembly and test energy (electricity)normalization = 1.547 kWh per KWbonds.
302-4

Reduction in energy consumption

Our Planet: Energy Consumption – page 55

302-5

Reductions in energy requirements of product andservices

N/A

GRI 303: Water 2018*
303-1 – 3

Water stress and how the organization works withstakeholders

Our Planet: Water Management – page 57

GRI 304: Biodiversity 2016*
304-1

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

None

GRI 305: Emissions 2016*305-1 – 2

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

Scope 1: 2,067,983 MTCO2
Scope 2: 671,922 MTCO2
Scope 3: N/A

305-4

GHG emissions intensity

Wafer fab GHG emissions (electricity, fuel, PFCs)
normalization = 44.362 grams carbon equivalent
per unit
Assembly and test energy (electricity, fuel,PFCs) normalization = 255.775 grams carbon
equivalent per kWBonds

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

* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

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Disclosure

Cross reference or Answer

305-5

Reduction of GHG emissions

Our Planet: Scope 1 and Scope 2 Emissions –page 54

305-6

Emissions of ozone-depleting substances (ODS)

Zero

305-7

Nitrogen oxides, sulfur oxides and other significant
air emissions

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

Additional Notes

GRI 306: Effluents and Waste 2016*306-1

Water discharge by quality and destination

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

306-2

Waste by type and disposal method

Our Planet: Waste Management – page 57

306-3

Significant spills

No significant spills in 2019

306-4

Transport of hazardous waste

Our Planet: Waste Management – page 57

306-5

Water bodies affected by water discharges and/or
runoff

All water discharge/effluent/runoff meets orexceeds local regulations.

GRI 307: Environmental Compliance 2016*
307-1

Non-compliance with environmental laws andregulations

2019 reporting year noticed no significant
fines, non-monetary sanctions or cases brought
through dispute resolution mechanisms.

GRI 308: Supplier Environmental Assessment 2016*308-1

New suppliers that were screened using
environmental criteria

New suppliers are not pre-screened using
environmental criteria. However, all suppliers
are provided with our Corporate Social
Responsibility Statement of Commitment throughour Supplier Handbook. Furthermore, our top
expenditure suppliers are required to sign our
Corporate Social Responsibility Statement of
Conformance and complete a risk assessmentwith environmental criteria every other year.

308-2

Negative environmental impacts in the supply chain
and actions taken

Our Business: Responsible Sourcing – page 21

GRI 401: Employment 2016*
401-1

New employee hires by age group, gender andregionOur People: Recruitment and Retention – page40

Employee turnover by age group, gender and region

Appendix: Additional Data – 2019 Workforce
Statistics – page 76

401-2

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

See our website for Regional Benefits Summaries
and 2019 SEC Form 10-K.

401-3

Parental leave

See our website for Regional Benefits Summaries
and 2019 SEC Form 10-K.

GRI 402: Labor/Management Relations 2016*402-1(a) Minimum notice periods regarding
operational changes

We provide advance notice or makes changes
to the contract mid-term by mutual consent
in accordance with collective bargaining
agreements entered and local requirements inthe different countries where we operate.

(b) Whether the notice period and provisions for
consultation and negotiation are specified incollective agreements

Belgium: as per legal provisions
Czech: as per legal provisions
China: yes (manufacturing only)
Japan: yes
Korea: n/a
U.S.: yes
Vietnam: no
Taiwan: no
France: as per legal provisions* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

ON Semiconductor

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Disclosure

Cross reference or Answer

Additional Notes

GRI 403: Occupational Health and Safety 2018*403-1

Occupational health and safety management systemand scope of system

Our People: Health and Safety – page 48

403-2

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

Our People: Health and Safety – page 48

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

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

403-3

Occupational health services

Our People: Health and Wellness – page 50

403-4

Worker participation and consultation andcommunication on occupational health and safety

Our People: Health and Safety – page 48

403-5

Worker training on occupational health and safety

Our People: Health and Safety – page 48

403-6

Promotion of worker health

Our People: Health and Wellness – page 50

403-7

Prevention and mitigation of occupational healthand safety impacts directly linked to business
relationshipWe follow strict standards to provide safe
workplaces for employees around the world.
Engineering controls like adequate exhaust/
ventilation, fire protection systems, interlocks,
machine guarding, etc. are preferred based onpresent hazards. In addition to that, personal
protective equipment (PPE) is provided based ona risk analyses.

403-8

Workers covered by an occupational health andsafety management system

Our People: Health and Safety – page 48

403-9

Work-related injuries

Zero

Number of hours worked

86,377,546

Work-related ill healthZero403-10

Manufacturing employees are represented bysafety committees and all are aware of who
their safety representative is. Safety committees
meet on weekly basis or as needed.

Contractors are responsible for meeting ON
Semiconductor requirements including our
EOHS Policy and applicable legal requirements
but not necessarily the OHSAS management
system.

GRI 404: Training and Education 2016*
404-1

Average hours of training per year per employee(a) By gender(b) By employee category404-2

Training programs for:(a) upgrading employee skills(b) transition assistance programs

404-3

Percentage of employees receiving regularperformance and career development reviews

19.75
19.75
Our People: Learning and Development – page
44
For transition assistance, we offer careercoaching, resume development, job searchtraining, skill building, networking training, cover
letters writing and interviewing practice. For
employees who are retiring, we offer retirement
and financial planning, counselling and legal
services.
Our People: Performance Management and
Employee Recognition – page 47

GRI 405: Diversity and Equal Opportunity 2016*405-1

Diversity of governance body and employees

Our Governance, Ethics and Compliance:
Overview – page 26
Our People: Overview – page 36
Appendix: Additional Data – 2019 Workforce
Statistics – page 76

405-2

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

We do not publicly disclose this information.

* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

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Disclosure

Cross reference or Answer

Additional Notes

GRI 406: Non-Discrimination 2016*406-1

Incidents of discrimination and corrective actions
taken

Specific legal prohibition

Attorney client privileged information

GRI 407 – 409: Freedom of Association and Collective Bargaining, Child Labor and Forced or Compulsory Labor 2016*407-1 – 409-1

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

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

GRI 410: Security Practices 2016*
410-1

Security personnel trained in human rights policies
or procedures

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

GRI 411: Rights of Indigenous Peoples 2016*
411-1

Incidents of violations involving rights of indigenous
peoples

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

GRI 412: Human Rights Assessments 2018*
412-1

Operations subject to human rights reviews or
impact assessments

Engineering a Better Tomorrow – page 6

412-2

Employee training on human rights policies andprocedures

Our People: Learning and Development – page
44

412-3

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

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

Human rights topics are covered in our annual
corporate social responsibility compliancetraining.

GRI 413: Local Communities 2016*413-1

Operations with local community engagement,
impact assessments and development programs

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

413-2

Operations with significant actual and potential
negative impacts on local communities

None* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

ON Semiconductor

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Disclosure

Cross reference or Answer

Additional Notes

GRI 414: Supplier Social Assessment 2016*414-1

New suppliers that were screened using social
criteria

New suppliers are not pre-screened againstsocial criteria. However, all suppliers are provided
with our Supplier Handbook, which references
our Corporate Social Responsibility Statementof Commitment. Furthermore top suppliers byspend are required to sign our Corporate Social
Responsibility Statement of Conformance andcomplete a risk assessment with social criteria
every other year.

414-2

Negative social impacts in the supply chain andactions taken

Our Business: Responsible Sourcing – page 21

GRI 415: Public Policy 2016*
415-1

Political contributions

None

GRI 416: Customer Health and Safety 2016*
416-1

Assessment of health and safety impacts of productand service categories

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

416-2

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

We are not aware of any non-complianceconcerning the health and safety impacts of theirproducts and services.

GRI 417: Marketing and Labeling 2016*
417-1

Requirements for product and service informationand labelingSee our Packaging and Labeling Reference
Manual

417-2

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

417-3

Incidents of non-compliance concerning marketing
communications

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

GRI 418: Customer Privacy 2016*
418-1

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

None

GRI 419: Socioeconomic Compliance 2016*
419-1

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

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

* Applies to the 2016 or 2108 version of the GRI Standards. “2016” or “2018” refers to the standards issue date, not the information presented in this table/report.

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CONTACT US[GRI: 102-53]

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

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

Tel: (602) 244-6600
Customer Inquiries: (888) 743-7826
Contact for CSR report inquiries: Jean Chong, vice president, ethics and corporate social responsibility
Email: social.responsibility@onsemi.com

ON Semiconductor

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