Infineon Technologies : Sustainability at Infineon, Supplementing the Annual Report 2022

Sustainability at Infineon

Supplementing the Annual Report 2022



Contents

 2 Introduction

 4 Key figures

 5 Notable events in the 2022 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. EU Taxonomy

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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CHARTChart reference

GRIGRI Disclosure

TARGETSOur sustainability targets

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Infineon|  Sustainability at Infineon 2022

Introduction

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Introduction

	Sustainable action - more important than ever
	Over the next ten years, decarbonization and digitalization will profoundly change
	the world we live in. We are just at the beginning of a far-reaching economic and
	social transformation. Dealing with issues such as the required transition of energy
	supplies, more efficient resource management, clean and intelligent mobility,
	connectivity and security in the Internet of Things calls for a bold approach, one
	that is underpinned by technology.
	At Infineon, we see these global challenges as a great opportunity. Semiconductors
	play a crucial role in the transition to a sustainable society and economy. Without
	them, renewable energy, the charging infrastructure for electromobility and secure
	communication between connected devices are all inconceivable. Our know-how and
	our innovative capacity make Infineon a key player in the green transition and the
	digital transformation. Our solutions enable a "net-zero" economy and connect the
	real world with the digital world. This is our contribution to a future worth living.
	Given the complex challenges, sustainable action - balancing economic, environmental
	and social considerations - is more important today than ever. For our company,
	sustainability has always been about more than just compliance with rules and
	regulations. Back in 2004, Infineon was one of the first semiconductor companies
	to join the UN Global Compact. Since then, its Ten Principles have constituted one of
	the main foundations of our commitment to being a socially responsible company.
	Making life more environmentally friendly is part of our mission. For years, we
	have prioritized CO2 avoidance and conservation of resources, especially in our
Jochen Hanebeck	manufacturing. As a result, we use resources in our production processes today in a
Chief Executive Officer	much more efficient way than the global average in the semiconductor industry.
	Yet we are not standing still. We want to continue to reduce our own carbon footprint.
	Our aim is to become a carbon-neutral company by the end of the 2030 fiscal year.
	This target includes not only all direct emissions but also indirect emissions from
	electricity and heat. By the end of the 2025 fiscal year, we want to have already
	reduced these emissions by 70 percent compared with 2019.

Infineon|  Sustainability at Infineon 2022

Introduction

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We are already making good progress towards these targets. In the 2022 fiscal year, for example, we switched the power supply for our semiconductor manufacturing in Austin (Texas, USA) completely over to renewable energy. All our other U.S. sites will have followed suit by the end of the 2022 calendar year. Our European sites have been running on green electricity since the 2021 fiscal year.

In addition to the continuous reduction in our own emissions, our products and solutions make a substantial contribution to better resource management and to climate protection. After deducting the CO2 emissions from their manufacture, our products generate more than 97 million tons of CO2 savings during their useful life. Our products therefore constitute a significant net benefit to the environment.

Renewable energy and electromobility are the main drivers of the strong growth in demand for our power semiconductors. Innovative compound semiconductors enable even higher levels of efficiency in energy conversion. We are therefore continuing to expand our manufacturing capacity for these materials, such as silicon carbide (SiC) and gallium nitride (GaN). Infineon is investing more than €2 billion in a third manufacturing module at its Kulim site (Malaysia). We laid the foundation stone in July. Thanks to state-of-the-art equipment and processes, the new manufacturing facilities will require fewer resources than existing factories. We are also creating capacity for precisely those next-generation semiconductors

that help save even more energy and therefore result in CO2 savings.

In this fiscal year, reporting on the EU Taxonomy forms part of our Sustainability Report for the first time. This means that we are complying with the latest regulatory requirements. However, our motivation goes far beyond that. An essential part of our extensive communications is to show how Infineon creates value and how

it helps solve the problems of our time - in particular, climate change. The parameters reported in the Taxonomy confirm our strategy and underline the contribution made by our products and solutions to tackle climate change.

As a company with global operations, we are part of the regional economy and society in many places and we have an impact on local standards of living. Through our corporate citizenship activities, we support initiatives and organizations that improve local people's lives.

Infineon's continuous commitment to sustainability is also reflected in ratings by independent bodies and positive evaluations from our partners. Examples include the following:

• In the 2022 fiscal year, for the twelfth year in a row, Infineon was included in the Dow Jones Sustainability Index family. With its listing in the Dow Jones Sustainability™ Europe Index and in the Dow Jones Sustainability™ World Index, our company ranks among the leading companies for sustainability in the world. Moreover, Infineon was named in the Sustainability Yearbook in the 2022 fiscal year, also for the twelfth year in a row.
• After Infineon had been awarded Gold status by EcoVadis for six years in succession, it received the EcoVadis Platinum medal in the 2022 fiscal year. EcoVadis is an independent rating agency that rates suppliers on the basis of their environmental, social and financial performance.
• For the fourth year in a row, our company received an AA rating (based on a scale from AAA to CCC) in the MSCI Environmental, Social and Governance (ESG) Ratings.

These awards are both a confirmation of our approach and a motivation to continue with our efforts. We will make Infineon even better. In this report, we give you an overview of our sustainability strategy and of the progress we have made. We also give you an indication of what we as a company have resolved to do over the coming years.

Neubiberg, November 2022

Jochen Hanebeck

Chief Executive Officer

Infineon|  Sustainability at Infineon 2022

Key figures

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Key figures

including Syntronixs

	More than
Worldwide leader in semiconductor	90 sites and
30 countries with more than
solutions that make life easier,
110 nationalities in our teams
safer and greener
Revenue of		4 segments
€14,218 million	with a Segment Result of
€3,389 million
€1,798 million
research and development		56,194
expenses
		employees
	€2,310 million	of whom 21 percent
	of investments in property,	work in research and
	development
	plant and equipment and
	other intangible assets
	including €209 million
	of capitalized development
	costs

Infineon|  Sustainability at Infineon 2022