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Sustainability at STMicroelectronics
Care for the environment is a core element in the business policy of STMicroelectronics and is embodied in the Company's Environmental Vision, Mission and Policy.
OUR VISION
To be recognized by all our stakeholders as a leader in environmental care by following our Environmental Decalogue and by exceeding regulatory requirements in both degree and timing wherever possible.
OUR MISSION
To strive for sustainable development in minimizing the impact of our processes and products on the environment by maximizing the use of recyclable or reusable materials and, where possible, adopting renewable sources of energy
OUR POLICY
To aim for ambitious continuous improvement of our environmental performance with a view to reducing our impact on the environment to levels which do not exceed those corresponding to the Economically Viable Application of the Best Available Technology (EVABAT).
To take a proactive approach in environmental activities, built on the principles of Total Quality Management (TQM) and guided by the 16 principles of the International Chamber of Commerce (ICC) Business Charter for Sustainable Development. See Appendix 1.
To be a world leader on the basis of:
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Moral obligation towards the environment. |
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Economic importance: investing in environmental protection gives a significant strategic advantage over those companies who wait; the financial efforts will, to a large extent, be repaid if we are capable of designing and implementing processes that are pollution free and which also reduce the use of valuable material resources and energy. |
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Human resources: to attract the best young people, and to motivate the Company's employees in the challenge for a better quality of life. |
GENERAL PRINCIPLES
The Total Quality Management (TQM) approach is a practical way of working and managing all aspects of a business to achieve the best results for all stakeholders. In the environmental context, this policy is termed Total Quality Environmental Management (TQEM).
The objectives are :
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To ensure Management commitment to a culture of environmental protection throughout the Company. |
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To design products and processes to minimize their environmental impact from "cradle to grave". To strive for continuous reduction of waste and pollution and in the consumption of water and energy, in a quest for sustainable development, as proof that ecology saving methods are both responsible and profitable. |
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To benchmark ST against leading companies the world over, so as to equal or exceed the best performing companies. |
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To apply the most advanced statistical tools (Statistical Process Control, Design of Experiment, Failure Mode Effects Analysis) to processes and products. Apply environmental tools such as Environmental Impact Analysis, Life Cycle Analysis to the environment parameters, assessing the potential impact on the environment and allowing the Company to develop and implement environmentally responsible manufacturing processes. |
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To ensure that training in environmental awareness is an integral part of each individual's Training and Development Plan. |
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To inform customers on recycling and safe disposal of ST products at the end of their useful life. |
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To promote partnerships with suppliers in order to achieve ST's environmental goals, and to involve contractors working on ST sites. |
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To promote an open dialogue with workers and the communities in which ST operates; cooperate in a positive spirit with industrial and scientific communities, governments and non-governmental organizations to develop laws, regulations and guidelines for the continuous improvement within these communities. |
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The ST Environmental Policy goes beyond the TQM principle of Customer Satisfaction and aims for Stakeholder Satisfaction through initiatives and programs based on the Company's Decalogue for the Environment. |
Appendix 2. Environmental Decalogue issued in September 1995
Appendix 3. Environmental Decalogue issued in August 1999 with objectives up until the year 2010.
ORGANIZATION
At the highest level, environmental concern is the responsibility of our Total Quality Environmental Management (TQEM) organization, headed by a Corporate Vice-President. The Environment Strategies and International Quality Programs (ES-IQP) organization within this group spearheads the achievement of our Vision, Mission and Policy.
Periodical audits are conducted by the ES-IQP and environmental Standard Operating Procedures and Corporate Specifications are set. Internal training on environmental issues is promoted and plans to meet corporate goals are implemented.
Through leadership and example, the ES-IQP group promotes a Company-wide culture of environmental protection.
Appendix 1. shows how ST manages its environmental activities according to the principles of TQM and the ICC Business Charter for Sustainable Development.
The Corporate Environmental Steering Committee (ESC), chaired by our CEO supports all aspects of the Decalogue, including review and resource allocation. At the local level, an Environmental Steering Committee and a Site Environmental Champion (SEC) are active in every environmental initiative. In strengthening the Company image as an environmentally conscious corporation, they interface between the Corporate Environment Strategies Group, Site Management (Purchasing, General Services, for instance), as well as with other functions such as R&D and Operations. Regular contact with all regulatory agencies is maintained by these groups.
OWNERSHIP OF THE DECALOGUE OBJECTIVES
A leadership structure of Corporate Environmental Working Groups (CEWG) guides and directs environmental programs for ST on a worldwide basis, highlighting the priorities and the main objectives to be tackled, coordinating and supporting the sites in the implementation of agreed decisions and solutions.
ENVIRONMENTAL AWARENESS AND TRAINING
To increase awareness of the environment, both with employees and outside contractors, training is given at each site. This includes:
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an in-depth commentary on the Company's Environmental Decalogue and the site Environmental Statement; |
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a general overview of the Corporate and Site Environment Manual; |
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an explanation of the role and responsibility of each new employee within the site environmental management system; |
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a tour of the site's main environmental facilities. |
With the support of the Site Environment Champion, local training organizations offer specific courses both for internal and external contractor personnel: for design, manufacturing, facilities, maintenance, purchasing, clean room staff, for example. In addition, courses on emergency preparedness and response, including evacuation exercises are also offered. The training is geared towards the control of the specific and significant environmental effects listed in the relevant Site Register.
All personnel operating, supervising, monitoring or maintaining environmental equipment such as waste water treatment equipment, scrubbers, chemical and waste stores are trained to maximize performance. They prevent potential non-compliance with environmental legislation and corporate standards and control the items listed in the Site Register of Significant Environmental Effects. This training is part of the Job Certification Program. ST personnel are given a refresher course every year and at each major change in environmental conditions.
In addition, a more advanced Environmental Awareness seminar was designed and developed at STMicroelectronics University. This seminar, also available on a CD-ROM, is offered to ST's suppliers and customers.
INVESTMENT IN THE ENVIRONMENT
We believe that companies investing in environmental protection have a significant advantage over those who wait. Any investment will largely be repaid if we are capable of designing and implementing pollution-free processes which can reduce the use of natural resources and energy. We have proven that business can be both responsible and profitable.
At ST, no investment made in energy conservation has taken longer than three years to recover. The average payback time has been less than two years.
PAYBACK FROM ENVIRONMENTAL INITIATIVES
Protection of the environment is thus a key mission at STMicroelectronics and the ultimate goal is to achieve environmental neutrality. One of the steps to reach this goal is the conservation of natural resources, reduction in energy and water consumption.
Increasingly, companies rated as eco-leaders obtain higher scores in vendor rankings, bringing a positive effect on sales. Also, important investment groups (especially banks), are today establishing special 'green' investment portfolios. A careful analysis of performance with regard to the environment will identify companies with a superior growth potential thanks to their efficiency in ecology. More and more, investments are now being made in companies where both financial and eco-efficient performance go hand in hand.
In this field, ST has been recently ranked as the world's leading semiconductor company for sustainability. The Company was also rated one of the top two sustainability-driven companies in the world for integration of sustainability into a comprehensive Total Quality Management System by the Dow Jones Sustainability Group Indexes (DJSGI).
Starting from the Dow Jones Global Index (DJGI) of nearly 3,000 companies in 33 countries, the DJSGI initially selected 2,000 companies with the largest worldwide market capitalizations and then across 68 countries, selected the top 10% with regard to sustainability. At the end of this exhaustive evaluation process, ST was ranked in the top two companies in the world, based on the sustainability performance in its industry.
The DJSGI is a family of global equities indexes that tracks the performance of 225 leading sustainability-driven companies in 68 industry groups in 22 countries. The DJSGI defines sustainability-driven companies as those that achieve their business goals by integrating economic, environmental and social growth opportunities into their business strategies through pro-active, cost-effective and responsible management.
SUPPLY MANAGEMENT
ST's ecological concerns have been well understood by its key suppliers and an ambitious program has been undertaken: 87% of the Company's suppliers have obtained, or are in the process of obtaining environmental certification.
EMAS validation or ISO 14001 certification has become a key point of our Supplier Performance Evaluation system, where the weight given to supplier performance regarding environment is more than 10%.
We strongly encourage our suppliers and subcontractors to become EMAS validated or ISO 14001 certified and assist them through training, support and auditing. At least 80% of our key suppliers should be certified by end 2001.
PROBLEM
Of the problems identified from 1993 and listed in our 1998 Environmental Report, only one remains to be solved. ST acquired a new property in Phoenix, Arizona where CFCs were present in the air conditioning system. Replacement of the system is to be completed by Q2 in 2000.
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