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Sustainability Report

At Microchip Technology Incorporated (Microchip), our vision to be the leading supplier of embedded control solutions includes a corporate commitment to acting in an ethical and responsible way. Our focus on environmental and social responsibility, transparency, and engagement guides our decision-making processes and helps keep us accountable as we continuously improve all aspects of our business.

I am pleased to introduce Microchip’s 2016 Sustainability Report, detailing our annual environmental and social performance and sharing selected activities that highlight our key workplace and community activities. It was a year of transformation at Microchip. We acquired Atmel Corporation and its subsidiaries, and with that acquisition, 3,000 employees joined the Microchip family. Significant time and resources have gone into managing the operational, personnel, and cultural changes that come with a large acquisition, and that work continues throughout 2017 across Microchip’s global operations. As such, it is a great time to reiterate how Microchip thinks about sustainability and how we’re working to improve sustainability in every area of our business.

Our Company

Our commitment to environmental and social responsibility is grounded in a commitment to integrity and ethics. A system of corporate governance laws, regulations, and policies guide our Board of Directors and top executives, and set the stage for compliance at all levels of the organization.

We are proud members of the UN Global Compact, a voluntary initiative based on CEO commitments of member companies to “align strategies and operations with universal principles on human rights, labour, environment, and anti-corruption, and take actions that advance societal goals.” As part of our membership, we publish an annual sustainability report that communicates our progress against those principles. This report describes our accomplishments over the previous calendar year.

Our Employees

Training and education is a core part of what makes Microchip a great place to work. One important component of our approach is an emphasis on peer learning.In 2016, almost 900 managers and employees were involved in delivering practical leadership and technical training to their peers. The opportunity to "share what you know" with your co-workers fosters asense of pride within our workforce, as well as an expectation for continuous learning.

Our efforts were once again recognized when Microchip was named to Training magazine’s “Top 125” for our employee training programs. We were also recognized by community organizations in Austin, Phoenix, New York, and California’s Bay Area as a top place to work.

Our Products

I am particularly excited about the work being done to integrate environmental considerations into our products and our product lines. Sustainability-focused innovation—such as the emphasis on ultra-low power consumption, extended battery life, and real-time monitoring—gives Microchip a competitive advantage in the industry. We’re using this advantage to deliverhigh-efficiency, affordable components to manufacturers, helping decrease the environmental impact of commercial and retail products in dozens of industries. For example, our innovations in predictive server cooling sensors reduce data farm power consumption, while our irrigation-controls systems help reduce over-watering by maximizing watering efficiency for everyone from the backyard gardener to agribusiness leaders.

Using our technology, our customers' products can predict and respond to changing conditions, increasing comfort, improving safety, and reducing environmental impact.

Our Supply Chain

We are a member of the Conflict Free Sourcing Initiative, working toward the goal of assuring our products are manufactured and sourced from socially responsible supply chains. As of December 31, 2016, all smelters remaining in our integrated circuits' supply chain were listed on the CFSI's Compliant Smelter List.

As we grow, we will continue to invest in efficiency technologies at all of our global facilities, further integrate our sustainability focus in our learning and development programs so employees have an eye toward sustainability, and create clear communication paths between business units to share sustainability approaches. As we grow, our team is well-positioned to document, share, and scale sustainability practices so we can capitalize on the sustainability opportunities presented to us in the coming years

Carbon Disclosure Project

We provide transparency into our world-wide greenhouse gas emissions and product development strategy with regard to climate change through our annual response to the Carbon Disclosure Project https://www.cdp.net/. Every year since 2012, we have been reporting greenhouse gas emissions for our semiconductor fabrication facilities in the United States to the US Environmental Protection Agency.  

United Nations Global Compact

Microchip has been a Participant in the United Nations Global Compact, and a supporter of its ten principles, since 2003.  Our commitment to the UNGC was expressed in our Letter of Commitment.  And as part of our participation in the UNGC, we submit an annual Communication of Progress (CoP).  Information about the UNGC and its ten principles may be found at www.unglobalcompact.org.

Corporate Governance and Sustainability