Flex Releases 2022 Sustainability Report and Commits to Net Zero Greenhouse Gas Emissions by 2040

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07/13/2022 - 09:05 AM

SAN JOSE, Calif., July 13, 2022 /PRNewswire/ -- Flex (NASDAQ: FLEX) today released its 2022 sustainability report, which summarizes the company's global sustainability activities, performance and results from calendar year 2021. In tandem with the report's release, the company announced a commitment to reach net zero greenhouse gas (GHG) emissions by 2040, doubling down on climate action efforts.

"Our 2021 achievements are encouraging and motivate us to continue pushing toward our 2030 sustainability goals. The progress we've made to date and commitment to reach net zero emissions by 2040 are only possible through the unwavering efforts of our 170,000 employees and ongoing collaboration with our suppliers and customers," said Revathi Advaithi, Chief Executive Officer at Flex. "Now, more than ever, companies across every industry and sector must take purposeful steps to address the climate crisis and champion a more sustainable way of working. Flex is dedicated to doing its part to accelerate climate action and helping our value chain partners do the same."

In 2021, Flex announced a new long-term sustainability strategy, framework and a comprehensive, ambitious set of targets, aligned with the United Nations Sustainable Development Goals and UN Global Compact's ten principles. Through its sustainability strategy, Flex is focused on reducing its environmental impact, investing in local communities, advancing a safe, inclusive, and respectful workplace, driving responsible, ethical business practices and accelerating a more sustainable value chain in partnership with customers and suppliers.

Prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core Option, Flex's 2022 sustainability report marks the first year of the company driving initiatives in alignment with its refreshed strategy and goals through 2030.

2021 sustainability accomplishments

14 percent decrease in absolute scope 1 and 2 greenhouse gas emissions from 2019 baseline year¹
97 percent of major sites² partnered with an NGO
17 percent reduction in safety incident rate year over year
100 percent of employees had access to emotional and mental health programs
22 percent female representation at the director level and above globally, and 31 percent racial and ethnic diverse representation at the director level and above in the U.S.
29 percent of preferred suppliers and 48 percent of specified customers³ set greenhouse gas emissions reduction and science-based targets, respectively

In 2021, Flex received accolades and awards for sustainability and ESG leadership, including placement on the "A List" for water security strategy and performance from CDP for the second consecutive year and inclusion in the S&P Global Sustainability Yearbook for the third year in a row. Additionally, the company received a Platinum rating from EcoVadis and maintained the highest disclosure and transparency scores from Institutional Shareholder Services.

Commitment to net zero greenhouse gas emissions by 2040

By 2040, Flex is committed to reaching net zero greenhouse gas emissions as part of the company's overall sustainability strategy. The company joined the Science Based Targets initiative in 2021 and is focused on scope 1, 2 and 3 emissions reduction targets aligned with the Paris Agreement's goal of limiting global temperature rise to 1.5°C above preindustrial levels.

Flex will continue to take a multi-pronged emissions reduction approach to support its net zero ambition. This includes investing in site and system efficiencies, procuring and deploying renewable energy and continuing collaboration with its ecosystem of customers and suppliers to develop and implement energy and emissions reduction strategies.

About Flex

Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps a diverse customer base design and build products that improve the world. Through the collective strength of a global workforce across 30 countries and responsible, sustainable operations, Flex delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets.

Contacts

Media & Press
Jessica Anderson
Sr. Manager, Corporate Integrated Communications
(408) 577-4789
Jessica.Anderson@flex.com

Investors & Analysts
David Rubin
Vice President, Investor Relations
(408) 577-4632
David.Rubin@flex.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. All statements other than statements of historical or current facts, including statements regarding our future business expectations and our environmental and other sustainability plans and goals and related timeframes, made in this document are forward-looking. The words "will," "may," "designed to," "believe," "should," "would," "could," "anticipate," "plan," "expect," "intend," "estimate," "goals," "opportunity," "future," "to be," "achieve," "grow," "committed," "seeks," "targets," "continues," "likely," "possible," "might," "potentially," "will," "on track," "working to," "encourage," "continue," "strive," "endeavor," "looking forward," "efforts," "aim," and variations of such words and similar expressions identify forward-looking statements, which speak only as of the date of this press release. Because these forward-looking statements are subject to risks and uncertainties, actual results could differ materially from the expectations expressed in the forward-looking statements. Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements include those described in Item 1A, "Risk Factors" and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2022, and in our Quarterly Reports on 10-Q and Current Reports on Form 8-K that we file with the U.S. Securities and Exchange Commission. In addition, new risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business. Given these risks and uncertainties, the reader should not place undue reliance on these forward-looking statements. We undertake no obligation to update or revise these forward-looking statements to reflect subsequent events or circumstances.

¹ The target boundary includes biogenic emissions and removals from bioenergy feedstocks. The company's revenue grew 8% during fiscal year 2022. With that growth, Flex saw an increase of absolute scope 1 and 2 emissions from 2020 to 2021. Flex is developing an energy management strategy to account for growth and remain on track with its greenhouse gas emissions reduction commitments. While Flex experienced an increase year over year, the company's absolute scope 1 and 2 market-based emissions in 2021 decreased from its 2019 baseline year.
² Sites with 1,000 or more employees.
³ Flex is committed that 70% of its customers by emissions covering purchased goods and services, capital goods and use of sold products will have science-based targets by 2025.