onsemi Commits to the Science Based Targets Initiative, Marking a Key Step in its Decarbonization Journey

Rhea-AI Summary

onsemi (Nasdaq: ON) has committed to the Science Based Target Initiative (SBTi) as part of its strategy to achieve net zero emissions by 2040. The company submitted a commitment letter to SBTi, initiating a 24-month goal validation process. This move includes setting near-term science-based emission reduction targets to ensure global temperatures do not exceed 1.5°C. The approved targets will be published by December 2024, enhancing transparency and investor confidence. The initiative is expected to align onsemi's growth with sustainable practices, providing a competitive edge in meeting customer emission reduction goals.

Positive

• Commitment to SBTi could enhance investor confidence.
• Setting near-term emission reduction targets aligns business growth with sustainability.

Negative

• None.

The company has pledged to set near-term Science Based Targets in support of its larger net zero by 2040 climate goal

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- onsemi (Nasdaq: ON), a leader in intelligent power and sensing technologies, today announced it has committed to the Science Based Target Initiative (SBTi). onsemi President and CEO Hassane El-Khoury recently signed a commitment letter and submitted it to SBTi, initiating the 24-month goal validation process. This is a pivotal step in the company’s decarbonization journey and demonstrates transparency in its net zero by 2040 climate goal.

With the submission of this letter, the company has pledged to set near-term science-based emission reduction targets in line with SBTi criteria. These ensure global temperatures do not exceed 1.5°C above pre-industrial temperatures, a critical threshold to avoid catastrophic impacts from climate change.

“SBTi is the gold standard for science-aligned carbon reduction targets, and with the help and expertise imparted by the initiative, we can ensure onsemi remains on target to support global emission reduction efforts,” said Kim Luu, senior director and head of Sustainability, Environmental Social Governance (ESG), onsemi. “By December 2024, onsemi will publish approved near-term targets aligned with and validated by SBTi, achieving a new level of transparency.”

Science Based Targets (SBTs) provide a clearly defined pathway for companies to reduce greenhouse gas (GHG) emissions, focusing on deep decarbonization of current business processes and decoupling business and revenue growth from increased emissions in the future. SBTs add credibility and validity to a company’s climate goals, as it requires a rigorous vetting process to ensure set targets align with established pathways for emissions reductions.

Additionally, SBTs can boost investor confidence in a business by establishing resilience against climate-related regulations. SBTs establish a competitive edge to improve a company’s top-line revenue, specifically as a value add for customers that have their own supply chain emission reduction goals. They also generate bottom-line savings by future-proofing resource resilience.

By December 2024, onsemi will publish approved near-term targets aligned with and validated by SBTi. Information about onsemi’s goals and progress in achieving these goals over the coming years will be shared in our annual Sustainability Report.

About onsemi

onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way to creating a safer, cleaner, and smarter world. onsemi is recognized as a Fortune 500^® company and included in the S&P 500^® index. Learn more about onsemi at www.onsemi.com.

onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230307005474/en/

Stefanie Cuene

Public Relations

onsemi

(602) 315-3778

Stefanie.Cuene@onsemi.com

Parag Agarwal

Vice President - Investor Relations & Corporate Development

onsemi

(602) 244-3437

investor@onsemi.com

Source: onsemi

FAQ

What is onsemi's commitment to SBTi?

onsemi has committed to the Science Based Target Initiative to set science-based emission reduction targets as part of its net zero goal by 2040.

When will onsemi publish its emission reduction targets?

onsemi aims to publish its approved near-term emission reduction targets by December 2024.

How does onsemi's commitment to SBTi impact investors?

The commitment to SBTi is expected to boost investor confidence by demonstrating transparency and alignment with sustainability goals.

What is the significance of SBTi for onsemi?

SBTi is recognized as the gold standard for carbon reduction targets, ensuring onsemi's goals align with climate science.

How does onsemi's sustainability commitment affect its business operations?

The sustainability commitment allows onsemi to decouple revenue growth from increased emissions, potentially improving operational resilience.