STMicroelectronics Releases 2021 Sustainability Report: Advancing Sustainability Plans

STMicroelectronics Releases 2021 Sustainability Report: Accelerating Sustainability Commitment Plan

China, May 20, 2021 – STMicroelectronics (ST; NYSE: STM), a global semiconductor leader serving multiple electronics applications, has released its 24th edition of its Sustainability Report, detailing its achievements in 2020.

“From the beginning of 2020, the world has changed, and the pandemic has transformed the way we live, work and communicate. During this difficult period, the entire company has shown great adaptability while continuing to develop sustainable technologies, build a sustainable world, and create long-term value for our employees and all stakeholders,” said Jean-Marc Chery, President and CEO of STMicroelectronics. “In December 2020, we accelerated our sustainability program and took an important step by announcing our commitment to achieve carbon neutrality by 2027. We have developed a comprehensive and detailed plan and mobilized professional partners and stakeholders to support us in achieving this ambitious goal through a collaborative approach.”

For 25 years, sustainable development has been an important part of STMicroelectronics' DNA, values ​​and business model. By collaborating with customers and partners to develop innovative technologies, STMicroelectronics has made important contributions to overcoming the environmental and social challenges facing the world today. Climate change is a global challenge that requires joint action from the whole world. In its commitment to limiting climate change, STMicroelectronics has decided to achieve the company's sustainable development goals ahead of schedule and has formulated a development plan to achieve carbon neutrality before 2027, the 40th anniversary of the company's founding.

protect environment

STMicroelectronics has been actively reducing the environmental footprint of its operations through dedicated programs for many years. In 2020, STMicroelectronics was included in the CDP Climate Change A List for the first time for its commitments and actions to control climate change. These commitments and actions include:

• Achieve carbon neutrality by 2027, one of the earliest carbon neutrality dates in the global semiconductor industry;

• Joined the Science Based Targets Initiative (SBTi). By the end of 2020, STMicroelectronics is the only semiconductor company approved to limit warming to 1.5°C.

• A 19% reduction in total greenhouse gas emissions in absolute terms compared to 2019;

• Renewable energy generation accounts for 40% of total electricity purchases, an increase of 50% from 2019, and there is a commitment to use 100% renewable energy by 2027.

people oriented

In the face of the COVID-19 pandemic, STMicroelectronics’ top priority is to protect the health of its 46,000 employees, who have demonstrated greater resilience and commitment to the communities where they live and work than ever before over the past year:

• Take the most stringent protective measures to protect the health and safety of STMicroelectronics factory employees and ensure the continuity of business operations in compliance with global and local regulations;

• Approved 15,000 employees to work from home. STMicroelectronics provides an employee assistance program called "STCare" to help them deal with remote work issues;

• Donate in-kind and cash to support hospitals and protect stakeholders;

• Employee engagement scores improved in 2020, with 81% of employees saying STMicroelectronics is a great place to work (4 points higher than in 2019);

• Recordable case rate (work-related injuries and illnesses) reduced from 0.16 in 2019 to 0.15 in 2020, on track to achieve ST’s 2025 target;

• The number of suppliers certified to RBA standards and methods in 2020 increased by 49% compared to 2019.

Customer demand drives innovation

ST continues to develop a pipeline of innovations that will help develop market-leading products and solutions, enabling customers to accelerate future business growth and ST to continue to expand breakthrough innovations in technology and applications, achieving ST’s strategic goals:

• Invested 15.2% of revenue ($1.55 billion) in research and development activities to support innovation;

• 63% of new products are ‘responsible’ products; STMicroelectronics’ responsible product portfolio accounts for 18.5% of total revenue;

• Continue to advance its strategic product plan for technologies based on Silicon Carbide (SiC) and Gallium Nitride (GaN), improving energy efficiency and performance across all STMicroelectronics’ end markets;

• Establish a new innovation management department to strengthen the company's internal and external talent search and cooperation capabilities to maintain, stimulate and promote the continuous innovation process;

• Open innovation with 143 active R&D partners worldwide.

The 24th edition of the report contains highlights and details of STMicroelectronics' sustainability achievements in 2020, and proposes the company's ambitious goals and long-term targets for 2025 in line with the United Nations Global Compact's Ten Principles and Sustainable Development Goals. The report format complies with the Global Reporting Standards (GRI), the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD). The report has been audited by a third party.