STMicroelectronics published its 25th annual sustainability report detailing 2021 performance and achievements.
STMicroelectronics is a global semiconductor company serving customers across a wide range of electronics applications. Collaborating with customers and partners, ST creates innovative technologies that bring an important contribution to overcoming the environmental and social challenges of the planet today.
“This is our 25th annual report, a significant milestone after the pioneering efforts of ST in this field. In 2021 we continued to achieve strong results across all key sustainability metrics, including the initial steps of our path towards carbon neutrality in 2027. We are determined to continue to do more and to accelerate our overall sustainability efforts to create technology for a sustainable world, in a sustainable way, and to generate long-term value for our people and all stakeholders,” said Jean-Marc Chery, President and CEO, STMicroelectronics.
In 2021 ST had been actively working, through a collaborative approach, on its sustainability commitments and programs to create a healthier, safer, and more inclusive environment for people and communities and to create profitable growth. ST’s continued efforts across many areas, detailed in the report, were recognized again in 2021 by inclusion in the DJSI World and Europe indexes, as well as in other key ESG rankings and international certifications.
Sustainable Technology
ST technologies and products enable its customers to boost sustainability and seize opportunities with continued improvement of the company’s social and environmental footprint at every stage of the product lifecycle.
In 2021, 69% of new products were identified as responsible (responsible sourcing, eco-design, advanced EHS standards of manufacturing, responsible products, and applications versus 63% in 2020. The revenue derived from responsible products was 20% of the total as against 18.5% in 2020. 37% of sales came from products that aimed at substantial greenhouse gas (GHG) reduction across the product lifecycle according to the EU taxonomy standard.
Sustainable Way
In December 2020, ST had committed to becoming carbon neutral by 2027 and has remained on track to meet the target, actively working in 2021 on reducing its environmental footprint. It has reduced GHG emissions by 34% compared to 2018 in absolute terms, despite the continued expansion of ST’s manufacturing capacity. It has increased the sourcing of electricity coming from renewable sources to more than 50% versus 43% in 2020. The company has reduced water consumption by 16% in comparison to per production unit in 2020. Further, it has reused, recovered or recycled 90% of the company’s waste against 88% in 2020.
2021 was a year that continued to be impacted by the Covid-19 pandemic and ST maintained its support to its 48,000 employees across the globe, while investing in safety, and diversity, equity, and inclusion.
The company continued to deploy the most stringent measures to protect the health and safety of employees who worked at ST sites to ensure continuity of operations, in line with global and local regulations.
It has decreased the recordable case rate (work-related injuries per 100 employees per year) with a record score of 0.12 (0.14 in 2020) which is among the best in class.
STMicroelectronics reached the target of hiring 30% women for exempt positions for the first time, but still, needs to make progress to reach the 2025 target of 20% of women in all management levels. Employee engagement score increased in 2021 with 83% of employees recommending ST as a great place to work (+2 points in 2020).
Sustainable Company
ST continues to create a funnel of innovation and talent across its ecosystems and communities and with academic, private, and public partners. This collaborative approach for profitable growth allows ST to develop market-leading products and solutions. It enables the company’s customers to tackle tomorrow’s challenges and fuel their future growth.
STMicroelectronics has invested 13.5% of revenues (USD 1.72 billion) in R&D to support innovation and has continued to invest in R&D and open innovation. It has an R&D network of 187 active academic and private partnerships worldwide to build the future. 330 STEM events and initiatives reached over 69,000 students and teachers of the company’s ‘STEM your way’ program.
The 25th annual report contains highlights and details of ST’s sustainability performance in 2021 and presents the Company’s ambitions and longer-term goals in alignment with both the United Nations Global Compact Ten Principles and Sustainable Development Goals and the Science Based Targets initiative.
It is aligned with Global Reporting Standards (GRI), Sustainability Accounting Standards Boards (SASB), and Task Force on Climate-Related Financial Disclosures (TCFD). A third party has verified this report.