STMicroelectronics releases today its 24th sustainability report detailing the 2020 performance.
“Since early 2020 the world has changed, with the pandemic reshaping how we live, work and communicate. During these tough times, ST showed resilience at all levels, while continuing to create technology for a sustainable world in a sustainable way and to generate long-term value for our people and all stakeholders. In December 2020, we took an important step to accelerate our efforts with the announcement of our commitment to become carbon neutral by 2027. To achieve this very ambitious target we have built a comprehensive program and will mobilize the support of expert partners and stakeholders in a collaborative approach.” said Jean-Marc Chery, President and CEO, STMicroelectronics.
For more than 25 years, sustainability has been an integral part of STMicroelectronics’ DNA, values and business model. Working together with customers and partners, ST creates innovative technologies that bring an important contribution to overcome the environmental and social challenges of the planet today. In ST’s commitment to limit climate change, a global challenge that requires collective action, ST accelerated its sustainable development objectives and has developed a roadmap to become carbon neutral by 2027, for its 40th anniversary.
Protecting the environment
ST has been actively working on reducing its environmental footprint through dedicated programs for many years. ST’s inclusion, for the first time in 2020, in the CDP “A list” for climate change recognizes the company’s commitments and actions, including:
- Setting the goal to become carbon neutral by 2027, one of the earliest dates anticipated for any semiconductor company globally;
- Joining the Science Based Targets Initiative (SBTi). By the end of 2020, ST was the only semiconductor company with approved targets to limit warming to no more than 1.5°C;
- Decreasing our total greenhouse gas (GHG) emissions by 19% in absolute terms compared to 2019;
- Purchasing 40% of electricity coming from renewable sources, representing an increase of 50% compared to 2019, with the commitment to use 100% renewable energy by 2027.
Putting people first
Facing the COVID-19 pandemic, ST’s priority has been to protect its 46,000 employees, who in the past year, even more than ever, demonstrated their resilience as well as their commitment to the communities in which they live and work:
- Deployed 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;
- Enabled 15,000 employees to work from home. ST provided a new employee assistance program named ‘STCare’ to help them manage the constraints of working remotely;
- Donated in-kind and cash to support hospitals and protect stakeholders;
- Increased the employee engagement score in 2020 with 81% of employees recommending ST as a great place to work (+ 4 points vs 2019);
- Decreased the recordable case rate (injuries and illnesses) from 0.16 in 2019 to 0.15 in 2020, on track to reach ST’s 2025 goal;
- Increased by 49% in 2020 vs 2019 the number of suppliers audited according to the RBA standard and methodology.
Creating innovation inspired by customers’ needs
ST continues to create a funnel of innovation that allows the development of the market-leading products and solutions that enable ST’s customers to fuel future growth. This allows ST to continue pushing the boundaries of disruption in technologies and applications, in line with ST’s strategic objectives:
- Invested 15.2% of revenues (US$1.55 billion) in R&D to support innovation;
- Produced 63% of new products identified as ‘responsible’ 18.5% of total revenues were generated by ST’s responsible-products portfolio;
- Continued to progress on strategic programs based on Silicon Carbide- and Gallium Nitride- based technologies and products targeting improved energy efficiency and performance across all end-markets ST serves;
- Created a new Innovation Office increasing both internal and external talent scouting and cooperation capabilities to sustain, stimulate, and facilitate the process of continuous innovation;
- Developed open innovation with 143 active R&D partnerships around the world.
The 24th report contains highlights and details of ST’s sustainability performance in 2020 and presents the Company’s ambitions and longer-term goals for 2025 in alignment with the United Nations Global Compact Ten Principles and Sustainable Development Goals. It is aligned with Global Reporting Standards (GRI), Sustainability Accounting Standards Boards (SASB), and Task Force on Climate-Related Financial Disclosures (TCFD). This report has been verified by a third party.