Our approach to the environment

Longstanding commitment

Our first environmental report was issued in 1998, covering our 1997 performance. It stated ST’s vision to be recognized as a leader in environmental care. It also set out our environmental mission: ‘To eliminate or minimize the impact of our processes and products on the environment, maximizing the use of recyclable or reusable materials and adopting, as far as possible, renewable sources of energy, striving for sustainable development'.

This 25^th edition of our sustainability report confirms that our commitment to respecting the environment has never faltered. In fact, it is now even stronger, following our decision announced at the end of 2020 to become carbon neutral by 2027.

Comprehensive management approach

Strong governance

Our Environmental policy (available on www.st.com) has been in place since 1993. It is supported by our sustainability charter (available on www.st.com), which outlines our commitments and goals for the next 10 years (see 2021 progress on sustainability goals). Under the leadership of the executive management, the Corporate Environmental team is responsible for developing environmental programs and procedures. These are then implemented and executed at operational level by dedicated environmental teams at each site.

Robust management system

Our environmental management is aligned with international standards such as ISO14001, ISO50001, ISO14064 and EMAS⁽¹⁾. Our performance and management systems are evaluated yearly through third-party surveillance audits, and our certifications are renewed every three years. In 2021, although we had to postpone some audits due to the COVID-19 pandemic, we adapted to the situation and performed a number of audits remotely. Despite these challenges, all our sites maintained their certifications.

To support our culture of continuous improvement, we also conduct internal audits on a three-yearly basis. Moreover, to assess the compliance status of the sites and to limit any risks related to our license to operate, we have a three-year program to conduct third-party environment, health, and safety (EHS) legal compliance audits. This program covers 38 sites, including all our manufacturing sites, all our sites with more than 150 employees and some smaller sites and warehouses. In 2021, we conducted 10 EHS legal compliance audits. I 103-2 I

Monitoring performance

We evaluate our overall environmental performance by monitoring multiple indicators, such as resource consumption, waste, and air emissions. Since 2001, we have used an internal tool to analyze data we have gathered on the inputs and outputs of our manufacturing operations. The smaller the footprint, the better the performance, with a score of 1.0 or below considered good. It allows us to compare the environmental impact of each ST manufacturing site, as well as our overall progress year on year. We analyze the results to identify potential improvements and define the priorities we need to address. In 2021, our eco-footprint score was 0.71. This was 0.07 better than our 2020 score and ahead of our 2021 target of 0.77. I 103-3 I

All environmental data within ST is collected and reported regularly (monthly, quarterly, and yearly) on our internal central environmental database. Managed by the environment managers and their teams, this platform helps us monitor multiple indicators across our sites. Tracking the progress of each indicator allows sites to constantly adjust and improve their performance. We share the results and best practices with all teams during quarterly environment steering committee meetings.

Close cooperation

Acting with employees

We all have a role to play in raising awareness of our environmental approach. This was reflected in our 2021 employee engagement survey results where 85% of our employees said that ST is taking action to protect the environment, 21 points above the GEEM⁽²⁾ norm.

In 2021, our Tours site (France) launched an innovative environmental escape game for ST employees and students. Participants become ‘special environment agents’ and receive different missions to tackle in order to progress in the game. The purpose of these missions is to identify energy savings, ensure effective treatment of wastewater, and control the sorting, disposal, and recycling of waste. More than 50 people participated in the first sessions, which received positive feedback.

Our employees also play a leading role in helping to make the change to a greener world. All our sites undertake initiatives to encourage people to respect the environment. For example, in 2021, our Kirkop site (Malta) launched a program called ‘ST goes green’ to encourage creative initiatives with a positive impact on the environment. During the year, the site collected innovative suggestions related to water, electricity consumption, office heating, outdoor activities, and other topics.

Similarly, the Green Committee of our Hong Kong site developed several activities to improve indoor air quality, recycle more, increase energy savings, and use sustainable supplies. The committee also launched a Green Certificate Reward program, where ST employees can accumulate points to win prizes by participating in the site’s sustainability activities. The teams at our Rennes site (France) also demonstrated their commitment to sustainability by participating in the city’s urban forest project and planting 1,300 seedlings on 400m² of land.

Biodiversity is essential for a healthy ecosystem. We are committed to preserving the biodiversity around our sites and our employees are very active in proposing and running initiatives adapted to the local context. Some examples of these are an insect hotel at our Tours site (France), beehives at our Rennes and Crolles sites (France), wild orchid protection at our Crolles site, an endemic plant garden at our Kirkop site (Malta), a butterfly farm at our Calamba site (the Philippines) and sheep at our Rousset site (France).

Participating in industrial and trade associations

We are members of numerous trade associations, working alongside other semiconductor businesses to define the future and consider the environmental impact of the electronics industry. In 2021, we continued our collaboration with the European Semiconductor Industry Association (ESIA), the European arm of the World Semiconductor Council, which was presided by Jean-Marc Chery, President and CEO of ST until the end of 2021. Pascal Roquet, our Corporate Environment Director, leads the ESIA EHS committee to align with our peers on a leading and proactive approach to EHS responsibilities. Throughout the year, our experts actively participated in working groups on resource conservation, air emissions and chemicals, as well as health and ergonomics. I 102-12 I