Analog Devices Releases 2022 Environment, Social and Governance Report

Rhea-AI Summary

Analog Devices releases its 2022 Environment, Social and Governance (ESG) report, highlighting its solutions that benefit society and the planet. The report introduces a new goal to achieve a 50% reduction in total water withdrawal by 2027 and emphasizes transparency in disclosures.

Positive

• ADI's green revenue represented about 30% of total revenue in fiscal year 2022, increasing approximately 34% from fiscal year 2021. The company aims to achieve a 50% reduction in total water withdrawal by 2027. ADI achieved a 7.2% decrease in greenhouse gas emissions and disclosed full Scope 3 emissions for the first time. 54% of electricity used at ADI's manufacturing facilities came from renewables in 2022. The company is making progress towards diverting 100% of waste at its manufacturing facilities. ADI aims to increase the global female manager population to 29% by 2026 and increase the combined Black, Hispanic, and Latinx employee population in the US from 7% in 2022 to 9% by 2026.

Negative

• None.

WILMINGTON, Mass.--(BUSINESS WIRE)-- Analog Devices, Inc. (Nasdaq: ADI), a global semiconductor leader, today released its 2022 Environment, Social and Governance (ESG) report. The publication highlights how ADI’s solutions benefit society and the planet, introduces a new total water withdrawn intensity goal, and continues the company’s commitment to transparent and accurate disclosures.

ADI releases 2022 Environment, Social and Governance report. (Graphic: Business Wire)

“ADI’s immensely talented, passionate, and dedicated workforce is tackling the world’s greatest challenges in partnership with our customers and partners, and we are confident there is no obstacle we can’t overcome together,” said Vincent Roche, ADI’s CEO and Chair. “We are pleased with our ESG accomplishments and how our efforts are helping our customers and partners meet their own ESG goals, however, the urgency of the issues we face means we are never satisfied. We remain thoroughly committed and optimistic about the positive impact our technologies can have for the health 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.
• Introduction of New 2027 Total Water Withdrawn Intensity Goal: 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.

For more on ADI’s ESG commitments, please visit https://www.analog.com/en/company/environment-social-governance.html.

About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, and software technologies into solutions that help drive advancements in digitized factories, mobility, and digital healthcare, combat climate change, and reliably connect humans and the world. With revenue of more than $12 billion in FY22 and approximately 25,000 people globally working alongside 125,000 global customers, ADI ensures today’s innovators stay Ahead of What’s Possible. Learn more at www.analog.com and on LinkedIn and Twitter.

Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “anticipates,” “expects,” “intends,” “goals,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “may,” “will,” “would,” “should,” “could,” “strives,” “designed,” and variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, statements that refer to ESG goals and commitments; business strategy and plans; the potential impact of our technologies; and other characterizations of future events or circumstances are forward-looking statements. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including the risk factors contained in our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement.

All trademarks and registered trademarks are the property of their respective owners.

(ADI-WEB)

View source version on businesswire.com: https://www.businesswire.com/news/home/20230713551597/en/

Ferda Millan

Analog Devices, Inc.

Ferda.Millan@analog.com

Source: Analog Devices, Inc.

FAQ

What is ADI's new goal for total water withdrawal?

ADI aims to achieve a 50% reduction in total water withdrawal normalized to fab production output by 2027.

What is ADI's progress in reducing greenhouse gas emissions?

ADI achieved a 7.2% decrease in absolute Scope 1 and 2 greenhouse gas emissions from 2019, and a 37% decrease in emissions intensity by revenue from 2019.

What is ADI's goal for renewable energy use?

ADI aims to achieve 100% renewable energy use at its manufacturing facilities by 2025.

What is ADI's goal for waste diversion?

ADI is working towards diverting 100% of waste at its manufacturing facilities.

What are ADI's diversity goals?

ADI aims to increase the global female manager population to 29% by 2026 and increase the combined Black, Hispanic, and Latinx employee population in the US from 7% in 2022 to 9% by 2026.