Corporate Environmental Report

Message from the President

Ten years ago, STMicroelectronics established environmental responsibility as a key strategic objective. Since then, the Company has moved from mere compliance with local laws to the global application of the most stringent regulations worldwide and demonstrated proactivity. Our Environmental Decalogue, first published in 1995, established ambitious goals for the main ecological issues, and we set an example by publicly announcing measurable targets to be reached by the end of the decade.

Within the frame of our Total Quality Management (TQM), we have developed teamwork, focused on continous improvement, empowered our people and made a consistent commitment to achieve the Decalogue goals. Today, at the end of the decade, most of these targets have been reached. At equal production value, we have cut energy and water consumption by 22% and 31% respectively. We have eliminated CFC and there has been a significant reduction in paper and chemicals consumption. All our sites were both EMAS validated and ISO14001 certified by the end of 1997. Moreover, we have promoted environmental awareness in our communities, through our people and business partners.

Today, as we set our objectives for the years 2000-2010, new challenges emerge: besides overpopulation and repartition of wealth, climate change is one of the critical issues now facing the world. Humanly produced greenhouse gases are increasing at an unsustainable rate and, although industry may not be the main contributor to these emissions, we must play our part as good citizens and adapt our manufacturing infrastucture and behaviour.

We have therefore set aggressive targets to reduce the impact of our activities on the atmosphere. Firstly, we will progressively eliminate the perfluorinated compounds (PFC) that contribute to the greenhouse effect. Secondly, through energy conservation, renewable energies and carbon sequestration, we will reduce to zero our net CO2 emissions by the year 2010.

These goals are much more ambitious than those required by present international protocols and once again demonstrate the Company's proactive approach in its commitment to the Environment.

In a noble and stimulating spirit, we want to show the way by competing with other world class industries to make our world a better place to live in, one that we will be proud to hand over to our children.

Environmental neutrality is our long term goal.