NVIDIA : FY20 Sustainability Report

2020 NVIDIACORPORATE SOCIAL RESPONSIBILITY REPORT

TABLE OF CONTENTS

01

02

03

04

EXECUTIVE LETTERS

03Letter from our CEO

05Letter from our EVP of Operations

PRIORITIES

07Setting Priorities

09

Mapping Priorities to the UN Sustainable Development Goals

STAKEHOLDER ENGAGEMENTGOVERNANCE

• 15Board Governance

• 16Compliance

• 17Ethical Conduct

• 18Transparency

06

07

SOCIAL

• 28PRIORITY:Supply Chain Management and Product Quality

• 35PRIORITY:Employee Health and Safety

• 36PRIORITY:Talent Strategy

• 39PRIORITY:Diversity and Inclusion

• 43Employee Engagement

• 46Product Safety

• 46Materials Availability

• 47Societal Impacts of AI

• 49Philanthropy and Volunteerism

ENVIRONMENTAL

• 51Management System

• 52Greenhouse Gas Emissions and Climate Change

• 54Energy, Water, Waste

• 56Facilities Management

• 57Environmental Impact of Products

• 61Packaging, Transport, and Logistics

05

• 19PRIORITY:Innovation

  ECONOMIC

• 20PRIORITY:Business Model and Competitiveness

• 21PRIORITY:Cybersecurity

• 22PRIORITY:Trade Issues

• 23Business Continuity Management

• 24Customer Relations

• 25Brand and Reputation

• 26Public Policy Engagement

08

GOALS AND PERFORMANCE

• 62FY20 Goals and Performance

• 64FY21 Goals

• 65Economic Performance

• 66Diversity Performance

• 68Workforce Performance

• 69Environmental Performance

• 72Employee Health and Safety Performance

• 72GRI Index

• 81SASB Index

• 85TCFD Index

ABOUT THIS REPORT

01EXECUTIVE LETTERS

"It is not enough to just be a well-intended, inclusive employer, and provide equal opportunities for blacks. We must purposefully and systematically create opportunities for black employees. Starting with me, we will elevate the urgency of increasing the black population at every level of our company and do our part to fight racism."

- Jensen Huang, CEO

CEO Jensen Huang's Opening Comments at 2020 Annual Meeting of Stockholders.

LETTER FROM OUR CEO

I want to take the opportunity to address the heartbreaking events of the past weeks in America as we confront painful racial inequities and prejudice that exist to this day.

We are deeply sorry for the pain, despair, and injustice that black communities continue to endure. We stand with them. Racism must end.

These tragic events force us to confront the fact that the world is not equal. It is not enough to not be a racist -we must be anti-racists. Exercise our citizenship to push for legislative reforms to end police brutality and racial injustice. Stand with social movements that protest peacefully for real change and reform. NVIDIA stands with them.

Corporations must also act. NVIDIA must act. It is not enough to just be a well-intended, inclusive employer, and provide equal opportunities for blacks. We must purposefully and systematically create opportunities for black employees. Starting with me, we will elevate the urgency of increasing the black population at every level of our company and do our part to fight racism.

We're fighting a two-front war. The world is still confronting COVID-19, one of the greatest challenges in human history. In just a few months, a pathogen 1,000th the width of a human hair has circled the globe and shaken society to its core.

We owe our thanks to those on the front lines of this crisis: first responders, healthcare workers, and service providers who inspire us every day with their bravery and selflessness.

NVIDIA 2020 CSR REPORTEXECUTIVE LETTERS

Billions around the world are Harnessing NVIDIA's acceleratedsheltering at home, doing their part to slow the spread of the virus. Many are unable to make a living or are struggling to do their jobs while caring for their families. At NVIDIA, we closed our nearly 60 offices around the world. We continue to pay contractors their full wages despite reduced staffing needs in our facilities. We gave employees raises early to put a little more money in their hands. Paying it forward, our employees have donated more than $10 million to help their communities.

NVIDIA is aiming our technology, our superpower, at COVID-19. When every second counts and much is at stake, scientists gear up with NVIDIA to jump to light speed. They are using NVIDIA-accelerated computing to sequence and image the virus, search for a vaccine or treatment, and build AI robots to disinfect hospitals.

COVID-19 will not be the last virus, but it can be the last pandemic. We must start now to prepare for future outbreaks. Working with the international scientific community, we will develop an end-to-end computational defense system to detect threats earlier, contain the spread, speed vaccine development, and continuously test and monitor. This pandemic will demand long-term structural changes to healthcare, transportation, retail, and manufacturing - the world's largest industries. Our expertise in computing and AI will help industries rebuild.

computing to save lives is the perfect example of our company's purpose-to tackle problems that ordinary computers cannot. NVIDIA stands at the intersection of two powerful technology forces -accelerated computing and AI. The computers we build are time machines that let scientists see the future today-rocket ships that take researchers to the furthest frontiers of science. With NVIDIA, scientists explore our universe from the quantum to the galactic scale and seek deeper understanding of humanity from the science of life to the mystery of intelligence.

Our company is advancing some of the most important technologies of our time. Our inventions help researchers tackle incredible scientific, industrial, and social challenges. Our company's purpose has never been more vital.

Jensen Huang

CEO and Co-Founder, NVIDIA

EXECUTIVE LETTERS

LETTER FROM EVP OF OPERATIONS

We're also on the front lines of enabling medical researchers to turbocharge their coronavirus treatment and research projects. A short list includes:

Here at NVIDIA, we're in the business of inventing revolutionary technologies that improve lives and address global challenges.

As I write this, the COVID-19 pandemic is challenging us to look for new ways to manage life and work while protecting our families. NVIDIA was early to join the global effort to slow the spread of the virus. We began closing our offices in the Asia-Pacific region at the end of January, and by March, we had closed our offices around the world. We urged our employees to make their health and their families' health their top priority, and began providing resources to employees to work remotely. For the few facilities engaged in essential tasks, we're following the highest standard of protection for our people and recognizing their efforts with bonuses. I also want to acknowledge the incredible efforts of our colleagues here at NVIDIA. Despite many challenges, they have barely broken stride during one of the busiest periods in our history.

• >We joined the COVID-19 High Performance Computing Consortium, a collaboration with the White House Office of Science and Technology Policy, the U.S. Department of Energy, several technology companies, and national labs. The effort will help researchers everywhere better understand the virus, its treatments, and potential cures.

• >We donated $430,000 to Wuhan University for treatment and research. Zhongnan Hospital physicians are using GPU-accelerated AI software to quickly detect patients who may have COVID-19. The software has been deployed to 34 hospitals in China.

• >We're providing any coronavirus researcher a free 90-day license to Parabricks, a version of the Genome Analysis Toolkit that uses GPUs to accelerate analysis by a factor of 50.

• >We issued a global call to action for PC gamers to contribute their idle GPU and CPU processing power to "fold" against the coronavirus. Folding@home is

a distributed computing project that uses volunteers' computer processing for disease research that simulates protein folding, computational drug design, and other types of molecular dynamics. The response has broken records as hundreds of thousands of new users join the effort.

Our CSR efforts build on our long track record of working hard every day to be a responsible corporate citizen by integrating sound social and environmental principles and practices throughout our enterprise.