STMicroelectronics Reports Further Advances in Sustainability during 2011

Company continues to lead by example

Geneva / 02 Jul 2012

STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, has announced the publication of the Company’s 2011 Sustainability Report. ST's fifteenth annual Sustainability report is based on the principles of the United Nations Global Compact ¹ and meets the guidelines for the Global Reporting Initiative (GRI) ². Containing comprehensive details of ST’s Sustainability strategy, policies and performance during 2011, the Report also illustrates how ST embeds sustainability into every level of its operations to create value for all of its stakeholders.

Throughout a challenging year characterized by unforeseen natural disasters and severe economic uncertainties, Sustainability was one of ST’s key priorities during 2011. During the year, ST made significant progress on all Sustainability fronts, such as Health & Safety, Environmental Protection, Responsible Products, People Development and its Community activities.

ST’s broad range of Sustainability achievements in 2011 included:

Consolidating its position among the industry leaders in safety;
Covering more than 83% of ST employees with the Company’s voluntary Health Plan;
Recycling more than 40% of all water used at all of its facilities worldwide;
Recycling/reusing more than 90% of waste generated at its facilities;
Ensuring that 100% of its supply chain exercises care to prevent the use of conflict minerals;
Enlarging the scope of its educational activities by initiating, together with a number of other European industrial companies –all members of the ERT³ the Global Enterprise Project, a new initiative that gives young people the opportunity to develop greater understanding about doing business globally while acquiring the skills required to succeed in today’s knowledge-based economy.
Introducing many advanced products such as intelligent motor drives specifically designed to minimize energy consumption across the spectrum of electronic applications.

“The semiconductor industry is increasingly driven by the way people live and what they expect technology to bring to their lives, both in enhancing the quality of the way they work, learn, interact and relax and in helping to address major societal challenges such as energy saving, healthcare and security,” said Carlo Bozotti, President and CEO of ST. “Sustainability is a crucial part of this challenge and we are determined not only to provide innovative solutions in these areas but also to lead by example in the pursuit of enriching sustainable business.”

The report, which includes feedback and contributions from numerous external stakeholders, demonstrates the scope and success of ST’s Sustainability strategy: balancing and responding to stakeholders’ expectations in the short and longer terms and enabling it to contribute to sustainable development at a global level.

The report is posted on the company’s website: company reports

NOTES
Sustainability achievements in 2011 included:

People
During 2011, ST continued to develop key programs to identify and reward innovation and creativity, further strengthen the engagement of all people working in ST, and identify and develop future leaders.

The Company also continued to make excellent progress in the field of Employee Health and Safety (EHS), with progressive and steady decreases of 69% in recordable cases and 84% in severity rates since 2002, further consolidating our position among the industry leaders. To continue striving for zero accidents, in 2011 ST reinforced its EHS training, exceeding the 2011 corporate target with an average of 3.8 hours per employee.

The Company Health Plan continued to make progress towards our aim of ensuring that 100% of employees will have benefitted by the end of 2013: in 2011 a total of 86,500 exams and tests were performed at all ST sites, covering 83% of employees.

Products
ST aims to have 100% of new products eco-designed by 2015 and in 2011 made significant progress in developing in-house eco-design tools well suited to the complexity of its products. The spearheads in this area are the integration, from the early stages, of environmental parameters in technology and product design, greener material selection and greener packaging.

ST continued to address the conflict minerals issue through its participation in the EICC and Global e-Sustainability Initiative (GeSI) and 100% of its supply chain was involved in 2011.

The Company also launched a new initiative on responsible products with the aim of tracking and communicating effectively on the products that provide a clear contribution to a more sustainable world.

Environment
In 2011, ST recycled more than 40% of its water, reusing it for different purposes, such as for scrubbers, cooling towers or civil usage, with one of its Italian sites receiving an Outstanding Achievement Award from the Sustainable Electronics Manufacturing Working Group. In terms of waste strategy, ST went beyond its EHS Decalogue(*) target, which requires that all sites meet the most stringent of either their national/local regulations or the company procedures. In 2011, more than 90% of waste generated was recycled and re-used, while less than 3% was sent to landfill.

The Company also implemented several programs to reduce the carbon footprint linked to transportation of ST products. For example, in 2011, the distance in kilometres for each kilogram of product transported in the ST network was reduced by 11%, while the newly finished goods-store hub in Calamba, Philippines, has enabled a two-day reduction in cycle time and a 55% CO₂ emission reduction, representing 1.4K tons of CO₂ emissions saved per year, as well as savings of more than US$ 1.3M on freight costs.

^(*) ST was one of the first global industrial companies to recognize the importance of environmental responsibility and its initial efforts, started in the early 1990s, led to the publication of its first “Environmental Decalogue” in 1995. This document, which was subsequently extended to include health and safety targets, set ambitious, measurable and public goals for reducing the environmental impact of ST’s operations. The Decalogue, now in its fourth edition, is available at ST EHS Decalogue_4^th edition
Community
ST’s community engagements are conducted via local initiatives at its sites around the world and through the work of the ST Foundation.

ST continued efforts to bridge the digital divide through the ST Foundation’s Digital Unify program and, by the end of 2011, ST volunteers had trained over 148,000 people throughout the world. The Company also enlarged the scope of its educational activities by joining the Global Enterprise Project, a new three-year initiative which will give young people the opportunity to develop greater understanding about doing business globally while acquiring the skills required to succeed in today’s knowledge-based economy.

In 2011, ST also deployed its Sustainable Procurement policy, which contributes to the goals of sustainable development and efficient resource usage by ensuring that the Company’s suppliers, contractors and the goods and services purchased achieve optimum environmental performance.

About STMicroelectronics
ST is a global leader in the semiconductor market serving customers across the spectrum of sense and power technologies and multimedia convergence applications. From energy management and savings to trust and data security, from healthcare and wellness to smart consumer devices, in the home, car and office, at work and at play, ST is found everywhere microelectronics make a positive and innovative contribution to people's life. By getting more from technology to get more from life, ST stands for life.augmented.
In 2011, the Company’s net revenues were $9.73 billion. Further information on ST can be found at www.st.com.

¹The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption
More information on: http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html
²The Global Reporting Initiative (GRI) is a non-profit organization that promotes economic, environmental and social sustainability. GRI provides all companies and organizations with a comprehensive sustainability reporting framework that is widely used around the world. More information on: https://www.globalreporting.org
³ ERT: European Roundtable of Industrialists