Infineon Technologies : Sustainability at Infineon, Supplementing the Annual Report 2021

Sustainability at Infineon

Supplementing the Annual Report 2021



Contents

 2 Introduction

 4 Key figures

 5 Notable events in the 2021 fiscal year

 8 Sustainability strategy

Non-Financial Report

 9 About this report

The combined separate Non-Financial Report refers to the chapters highlighted in gray. All text sections, tables and charts in the Sustainability Report which are allocated to the Non-Financial Report are identified by a gray page border. References to information within the Combined Management Report are a part of the Non-Financial Report. References outside of the Combined Management Report constitute supplementary information and are not part of the Non-Financial Report.

1. Business ethics

1. Human rights
2. Human resources management

1. Protection of our employees

1. Environmental sustainability and climate protection

1. Contribution through sustainable products

1. Our responsibility along the supply chain

1. Corporate citizenship

1. Our sustainability targets

1. UN Global Compact Communication on Progress

1. Sustainable Development Goals

1. GRI Content Index

1. Assurance Reports

1. Imprint

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GRIGRI Disclosure

TARGETSOur sustainability targets

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Infineon Technologies|  Sustainability at Infineon 2021

Introduction

2

Introduction

	Sustainability as a guideline
	Around the globe, over the past fiscal year, the topic of sustainability has moved
	increasingly into the public consciousness. The social and economic effects of the
	coronavirus pandemic and climate change have been felt and are still being felt
	worldwide. They make clear that we are living in a connected world and that we need
	to work together to tackle global challenges. Major economies such as the USA, China
	and Europe have set themselves individual climate targets and have communicated
	the measures they plan to take. All around the world, business, government and
	society are pressing ahead with decarbonization programs. Electrification - based
	on electricity from renewable energy sources - and digitalization are creating new
	opportunities to reduce CO2 emissions and to use resources efficiently.
	With its products and solutions, Infineon enables digitalization, automation and
	electrification. Our technologies make life easier, safer and greener. They support
	climate protection and increase the energy efficiency of electricity producers and
	consumers, enable environmentally friendly mobility and ensure security in a
	connected world. This makes clear they are a key success factor in global sustainability
	efforts. Sustainability has been and remains part of our business model and the
	basis for our economic success.
	Our corporate responsibility is not confined to our products. In our view, economics,
	ecology and social commitment need to be considered together to form the whole
	picture. Only through the interaction of these three are we able to achieve something
	in the long term. We make our contribution by accepting and meeting local, regional
	and global challenges. This is why we signed up to the UN Global Compact back in
	2004. Its Ten Principles form the basis of our plans and actions.
	In the past fiscal year, we established a new organizational structure to reflect our
	commitment to sustainability, in view of the global growth of the company. We set
	up a Corporate Social Responsibility (CSR) Board that consists of members of the
Dr. Reinhard Ploss	Management Board and of Infineon's specialist departments and therefore represents
Chief Executive Officer	a cross-section of our company and relevant topics. The CSR Board evaluates significant
	CSR content and determines its consequences for the actions of our company.

Infineon Technologies|  Sustainability at Infineon 2021

Introduction

3

Already in 2020, we committed to making Infineon a carbon-neutral company within ten years, that is by the end of the 2030 fiscal year. This year, we have switched electricity consumption at our sites in Europe fully over to certified green electricity. This means that we are well on the way to achieving our interim target of reducing our CO2 emissions by 70 percent by 2025, compared with 2019. By this we are making an active contribution to the implementation of the Paris Climate Agreement - directly in our own operations, but to an even greater extent with our products and solutions. These enable savings of more than 72 million tons of CO2 during the use-phase of the end application - a significant net benefit when compared to the CO2 emissions caused by the manufacture of these products.

Sustainability requires a contribution from us all as individuals. To invite all Infineon employees to participate actively, we launched the campaign "Infineon aims to be CO2-neutral by 2030: Be part of it and come up with your ideas!". We want to harness the creativity and skills of our workforce to contribute to our efforts towards carbon neutrality. The Management Board is also actively involved. Our sustainability targets for climate protection and diversity are reflected in the revised compensation targets for the Management Board and for executives.

With advances in digitalization and the focus on systems and solutions, as well as the integration of Cypress, we have taken account of the increasing size and complexity of our company by creating a new Management Board position. As Chief Digital Transformation Officer, Constanze Hufenbecher is driving forward many cross-departmental assignments and projects. In our company, we want to use digitalization to link our global organizational units together, in a way that is effective and unaffected by time zones. In this way, we are strengthening Infineon and reinforcing our commitment to sustainability, which we see as all-embracing and covering every part of our company.

Our continuous commitment to sustainability is confirmed by many external ratings and positive evaluations. Examples include the following:

• EcoVadis awarded Infineon Gold status for the sixth time in a row. EcoVadis is an independent rating agency that rates suppliers on the basis of their ecological, social and financial performance.

• In the 2021 fiscal year, for the eleventh year in a row, Infineon was included in The Sustainability Yearbook.
• Infineon was listed for the tenth time in the Dow Jones Sustainability™ Europe Index and for the sixth time in a row in the Dow Jones Sustainability™ World Index.
• For the third year in a row, our company received an AA rating (on a scale from AAA to CCC) in the MSCI Environmental, Social and Governance Ratings.

Notwithstanding the recognition we have received for our sustainability efforts, the company's participation in local projects is important to us. Through our corporate citizenship activities, we support initiatives and organizations that improve people's lives: for example, by donating ventilators to tackle the coronavirus pandemic.

In this report, we give you an overview of our sustainability strategy and its practical implementation. We would like to show you what we have already achieved and also point out what we are working on currently and will be working on in the coming years, since we bear responsibility today for what happens tomorrow.

Neubiberg, November 2021

Dr. Reinhard Ploss

Chief Executive Officer

Infineon Technologies|  Sustainability at Infineon 2021

Key figures

4

Key figures

	More than
Worldwide leader in semiconductor	80 sites and
30 countries with more than
solutions that make life easier,
105 nationalities in our teams
safer and greener
Revenue of		4 segments
€11,060 million	with a Segment Result of
€2,072 million
€1,448 million
research and development		50,288
expenses
		employees
	€1,497 million	of whom 21 percent
	of investments in property,	work in research and
	development
	plant and equipment and
	other intangible assets
	including €199 million
	of capitalized development
	costs

Infineon Technologies|  Sustainability at Infineon 2021