2022 ESG Report | Analog Devices a leading global semiconductor company, has published its highly anticipated 2022 Environment, Social and Governance (ESG) report. The report highlights the significant societal and environmental benefits of ADI’s solutions, introduces a new total water withdrawn intensity goal, and reinforces the company’s commitment to transparent and accurate disclosures.
Vincent Roche, CEO and Chair of ADI, expressed confidence in the company’s dedicated and talented workforce, which is actively collaborating with customers and partners to address the world’s most pressing challenges. Roche emphasized ADI’s pride in its ESG achievements and their contribution to helping customers and partners achieve their own ESG objectives. However, he also underscored the urgent nature of the issues at hand, stating that ADI remains unwaveringly committed and optimistic about the positive impact its technologies can make on the well-being of humanity and the planet.
Key updates from the company in the 2022 report include:
- ADI’s Solutions Benefit Society and the Planet: ADI has become a leader in designing the semiconductors and system solutions that bridge the physical and digital world for the benefit of society and the planet. ADI works with customers to co-create innovations that improve quality of life and solve pressing challenges across its end markets, which include industrial, automotive, communications, digital healthcare, and consumer. Green revenue represented about 30% of ADI’s total revenue in fiscal year 2022, increasing approximately 34% from fiscal year 2021. Roughly 30% of ADI’s R&D was green-focused, level with the company’s fiscal year 2021 green R&D.
- ADI has set a new goal to achieve a 50% reduction in total water withdrawal normalized to fab production output by 2027. This goal is in addition to ADI’s progress of reaching a 25% water recycling rate in manufacturing facilities.
- Enhanced Transparency of Disclosures: In line with its commitment to transparent and accurate disclosures for all stakeholders, the 2022 ESG Report includes a new ESG Results section that itemizes ESG performance metrics and KPIs. This section defines each KPI, includes available values and, where appropriate, aligns them with the United Nations Sustainable Development Goals.
Key progress against the company’s ESG commitments include:
- Climate: Achieved a 7.2% decrease in absolute Scope 1 and 2 greenhouse gas (GHG) emissions from 2019, and a 37% decrease in Scope 1 and 2 GHG emissions intensity by revenue from 2019. For the first time, the company also disclosed full Scope 3 emissions, an essential component of achieving its goal of Net Zero emissions across the value chain by 2050 or sooner.
- Energy: 54% of electricity used at ADI’s manufacturing facilities came from renewables in 2022, putting the company on track to achieve its goal of 100% by 2025.
- Waste: The company is making substantial progress toward reaching its goal of diverting 100% of its waste at ADI manufacturing facilities, achieving 90% in 2022.
- DE&I: In 2022, 25% of managers globally were female, supporting ADI’s goal of increasing the global female manager population to 29% by 2026. ADI also remains on track to increase its combined Black, Hispanic, and Latinx employee population in the United States from 7% in 2022 to 9% by 2026.
FAQ
What is the key focus of Analog Devices’ 2022 ESG report?
The key focus of Analog Devices’ 2022 ESG report is to highlight how the company’s solutions benefit society and the planet, introduce a new total water withdrawn intensity goal, and emphasize the commitment to transparent and accurate disclosures.
How does Analog Devices contribute to sustainability?
Analog Devices contributes to sustainability through its focus on designing semiconductors and system solutions that bridge the physical and digital world for the benefit of society and the planet. The company collaborates with customers to create innovations that improve quality of life and address challenges in various sectors. In fiscal year 2022, approximately 30% of Analog Devices’ total revenue came from green initiatives, and around 30% of their R&D efforts were green-focused.
What is Analog Devices’ new water sustainability goal?
Analog Devices has set a new goal to achieve a 50% reduction in total water withdrawal normalized to fab production output by 2027. This goal complements the company’s progress in reaching a 25% water recycling rate in its manufacturing facilities.
How has Analog Devices enhanced transparency in its ESG disclosures?
Analog Devices has enhanced transparency in its ESG disclosures by introducing a new ESG Results section in its 2022 report. This section itemizes ESG performance metrics and key performance indicators (KPIs), defining each KPI and aligning them, where applicable, with the United Nations Sustainable Development Goals.
Where can I find more information about Analog Devices’ ESG commitments?
For more on ADI’s ESG commitments, please visit https://www.analog.com/en/company/environment-social-governance.html.
