Silicon Laboratories : 2023 Corporate Sustainability Report

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Corporate

Sustainability

Report

A Message from Our CEO

The IoT, driven by the merging of wireless connectivity and extending intelligence to the edge, is a revolutionary force for sustainability. It speaks to the mission

of Silicon Labs to not only empower our customers' pursuit of sustainability, but also as a goal for how we operate. For us, it's about delivering industry- leading, high-quality products to our customers, treating our suppliers and partners fairly, and maintaining an ethical supply chain. Wireless connectivity enables us to reduce the impact of our operations on the planet by closely managing our water consumption and intelligently monitoring building energy use. We're proud to share our goals and the progress we're making.

Our responsibility as a company is to create paths that mitigate climate change not only with our products but also within our practices. In 2023, two years ahead of target, we achieved our goal of reducing our absolute scope 1 and 2 greenhouse gas (GHG) emissions at our Austin Headquarters by 50% compared to our 2018 baseline. This year, we set a science-based target of 90% absolute reduction in scope 1 and 2 emissions by the end of 2030 versus a 2021 baseline. We believe this target exceeds the minimum reduction required to meet the Paris Agreement's goal of limiting the rise in global temperatures to 1.5°C above pre-industrial levels, and as part of our plan to achieve this goal, we will continue to transition to renewable energy sources at our facilities worldwide. We also recognize our supply chain is a significant component of our total GHG emissions, and we will continue to engage with our suppliers and work to identify opportunities for science-based emissions reduction targets in their practices.

Silicon Labs remains committed to our employees and continues to invest in initiatives that foster a vibrant culture. In 2023, we were certified as a Great Place to Work for the fifth year running, with an 86% employee engagement score. This certification recognizes our efforts to create a safe, healthy, and satisfying workplace.

Our Employee Research Groups are an increasingly important part of employee life throughout our global offices, focusing on fostering cross-cultural collaboration and empowering members through opportunities for networking and professional development. We're committed to strengthening the talent pipeline by supporting STEM initiatives and mentorship programs for a skilled future workforce.

Our talented and engaged employees are delivering IoT solutions that make a positive impact on the world-solutions that support the energy transition, manage precious resources like water, enable innovative connected health solutions, and improve energy efficiency in homes, buildings, and cities. In India, for example, Silicon Labs is working with our customers to help the country pursue their ambitious Advanced Metering Initiative, with the goal of operating smart meters in every building by 2070. More intelligent monitoring and operation of the energy grid can drastically reduce its carbon footprint.

We made good progress in 2023 and are excited to continue the momentum into 2024. I recently signed a letter to the United Nations (UN) Global Compact confirming our commitment to their ten principles and becoming an official participant of their organization. This was

an important step in affirming publicly our sustainability strategy and echoes our founding values of "doing the right thing."

Matt Johnson

President and CEO

Silicon Labs 2023 CSR  |  2	About Silicon Labs	Enabling a More	Fostering a Culture	Advancing Responsible &	Ensuring Ethical &	Appendix
	Sustainable World	of Innovation	Sustainable Operations	Responsible Governance

About Silicon Labs

Silicon Labs is a leader in secure, intelligent wireless technology for a more connected world. We make it easy for developers

to solve complex wireless challenges throughout the product lifecycle and get to market quickly with innovative solutions that transform industries, grow economies, and improve lives. We power sustainable IoT solutions that measurably support improved energy efficiency, better health, innovative infrastructure, sustainable cities, and responsible production.

We're a fabless semiconductor company headquartered in Austin, Texas, with employees and manufacturing partners in many countries around the world. We're committed to cleantech product design, environmentally and socially responsible operations throughout our supply chain,

and providing the highest level of product security.

Guided by our shared values, we strive to "do the right thing" for our employees, customers, partners, and communities.

We hire, foster, and empower great talent.

Our team consists of big-picture thinkers and cross-functional collaborators with technical skills, creativity, and the potential to do great things.

We meet our commitments and hold ourselves accountable.

We practice asterisk-free engineering, lead by example and commit to excellence.

We create customer value and commercial success through innovation and simplicity.

We focus on eliminating the unnecessary and perfecting the essential to help our customers succeed.

We do the right thing.

We conduct business with integrity and do what is right for our employees, customers, shareholders, communities, and planet.

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	Sustainable World	of Innovation	Sustainable Operations	Responsible Governance

Our Sustainability Strategy

Silicon Labs is creating a smarter and more connected world. We are committed to advancing our environmental, social, and governance efforts and becoming a sustainability leader in the semiconductor industry. Our sustainability strategy is guided by our core values and focuses on areas where we believe we can make the biggest impact: creating innovative products with positive environmental and social impact, fostering and empowering an inclusive, innovative culture; conducting our business in an environmentally and socially responsible way; and sharing value creation with our stakeholders and communities, now and in the future.

O U R E S G A P P R O A C H

We view sustainability through the lens of environmental, social, and governance (ESG) topics, focusing our sustainability goals in five strategic areas: employee wellbeing, product and services innovation, eco-efficient operations, climate change mitigation, and responsible supply chain.

Our stakeholders are a major source of insights on ESG and accountability. We solicit and integrate their feedback to determine which strategic areas to focus on.

Our ESG Steering Committee drives our commitment to ESG and defines our strategy as part of an ongoing process. Senior Management and cross-functional employees meet regularly to set the strategy, drive objectives, and provide updates throughout the year. To ensure that our results are measurable and therefore accountable, we follow multiple sustainability reporting frameworks such as the Sustainability Accounting Standards Board (SASB), the Task Force on Climate-Related Financial Disclosures (TCFD), and the Global Reporting Initiative (GRI).

Our ESG initiatives are aligned with the United Nations Sustainable Development Goals and the United Nations Global Compact principles, in which we started our process in 2023 to become participants.

See Appendix for more details

Silicon Labs 2023 CSR  |  4	About Silicon Labs	Enabling a More	Fostering a Culture	Advancing Responsible &	Ensuring Ethical &	Appendix
	Sustainable World	of Innovation	Sustainable Operations	Responsible Governance

Our Goals

Renewable Energy

New Goal

Emissions

New Goal

70%

renewable energy use in Austin headquarters by end of 2023

N E A R LY A C H I E V E D

In 2023, our Austin headquarters consumed 68% renewable energy and 88% renewable electricity

100%

renewable energy use in all Silicon Labs facilities where programs are available by end of 2025

O N T R A C K

In 2023, and we achieved 35% renewable energy globally and have programs in place to increase our global renewable energy use

50%

absolute reduction in scope 1 and 2 GHG emissions in our Austin headquarters by end of 2025 versus the 2018 baseline

A C H I E V E D

In 2023, we reduced our scope 1 and 2 GHG emissions by 60% versus the 2018 baseline

90%

Science-based target of 90% absolute reduction in scope 1 and 2 GHG emissions by end of 2030 versus the 2021 baseline

Waste Management

New Goal

Supplier Management

New Goal

70%

landfill diversion rate at our Austin headquarters by 2023

A C H I E V E D

In 2023, we achieved a 75% landfill diversion rate

5%

absolute waste reduction in Austin headquarters versus 2023 baseline

100%

of major suppliers (corporate and facilities) to complete SAQ by 2024

80%

of all suppliers (corporate and facilities) to complete SAQ by 2024

Engage by end of 2025 with major suppliers on science-based reduction targets for our scope 3 emissions

Inclusion

80%

of high-risk major suppliers to complete a VAP - with a goal of

90%

global employee engagement score by

2025

90%

of employees participating in one or more Silicon Labs inclusion initiatives by 2025

O N T R A C K

In 2023, we achieved an 83% employee engagement score and were certified for the fifth year running as a Great Place to Work**. Additionally, 88% of employees participated in at least one inclusion initiative

silver recognition by 2025

O N T R A C K

In 2023, we achieved our goal of reaching 100% SAQ response rate from our major suppliers and >80% for all suppliers (corporate and facilities)

**Silicon Labs has participated in the Great Place to

Work survey since 2019

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	Sustainable World	of Innovation	Sustainable Operations	Responsible Governance

Stakeholder Engagement

Stakeholder engagement is a priority for Silicon Labs. We believe in continuous and open dialog with stakeholders, including an understanding of material topics, expectations, and engagement processes, essential to Silicon Labs' success. Our first materiality assessment back in 2022 was designed to solicit thoughtful stakeholder feedback that has informed our long-term strategic priorities across ESG issues and stands as a key element of our sustainability strategy. Please refer to our 2022 Corporate Sustainability Report for further details. We built on this in 2023 using the same methodology and stakeholder group with the following process flow.

Note: Governmental bodies were not included as stakeholders in the materiality assessment this year. However, we are constantly monitoring the development of public policies that could affect our business operations and engage with them through our annual reports and participation in public comments whenever possible.

1	2
Identify ESG Issues		Identify Stakeholders
Environmental: 6		Employees
Social: 7		Investors
Governance: 6		Customers
		NGOs
		Suppliers

3

Materiality Survey

Evaluation of the topic at two levels:

Importance to stakeholder Impact to the business

4

Analyze and Prioritize Material Topics

Material topics remains the same from previous year analysis

Stakeholder

Employees

Customers

Investors

Suppliers

Non-Government Organizations

Material Topics ■ Employee engagement, training, and development

• Diversity, Equity, and Inclusion
• Occupational health & safety
• Business Ethics

• Products Services and Innovation
• Human Rights Protection
• Data Privacy and Security
• Emissions and Energy

• Business Ethics
• Financial & Economic Growth
• Board independence and Diversity
• Emissions and Energy

■	Product Quality and Safety Management	■	Community Engagement
■	Responsible Supply Chain and	■	Human Rights Protection
	Materials Sourcing Management	■	Environmental Compliance

• Environmental Compliance
• Human Rights Protection

Engagement Process

• Employee surveys & inclusion assessments
• Live & on-demand seminars, conferences, workshops
• Online training platform for formal education and skill-building
• EthicsPoint Line
• Recognition, awards, milestone celebrations
• Intranet, internet, news, emails, videos
• Company Meetings, Town Halls, All- Hands Meetings, Offsite events
• Opportunities to build connection & community while supporting flexible work options

• Conventions, technical seminars
• Joint seminars, conferences, blogs, workshops,
• Internet, news, emails
• Customer meetings
• Website - Sustainability

• Quarterly earnings calls
• Analyst Day
• Conferences
• Shareholder outreach
• Quarterly & annual reports
• Investors Relations website

• Meetings
• Audits
• Contracts
• Surveys
• RBA Tools

• Donations
• Volunteering
• Partnerships
• Global Month of Service
• Site visits

Silicon Labs 2023 CSR  |  6	About Silicon Labs	Enabling a More	Fostering a Culture	Advancing Responsible &	Ensuring Ethical &	Appendix
	Sustainable World	of Innovation	Sustainable Operations	Responsible Governance

2023 Highlights

92%	1st
of employees	full year of the
believe management	global DEI Council,
promotes inclusive	introduction of
behavior and is	Cultural Agility course
committed to equity
%	75%
99	of total waste
of employees	diverted globally
completed at least
one continuing
education course

Leading semiconductor Matter code contributor

and third largest contributor overall

Certified the first Sub-Ghz Soc

xG23x to PSA Level 3

18

grants awarded to expand technology education access to underrepresented groups

100%

of our major suppliers completed the SAQ audit including our new custom made ESG SAQ survey

Driving Single Security Certification as part of the Product Security Working Group in the CSA

1st

worldwide "product" level security program for ETSI EN 303645 EU Standard

88%

of employees completed at least one inclusive workplace course

0

recordable workplace incidents

1.5-2x

increase in speed for Silicon Labs MG24 SoC recognized in the MLPerfTM Tiny v1.0 benchmark

Responsible Business Alliance Member

60%

Absolute reduction in scope 1 and 2 emissions versus the 2018 baseline

35%

global renewable energy use

In 2023, our Austin headquarters consumed 68% renewable energy and 88% renewable electricity, and we achieved 35% renewable energy globally

Initial production of the new SiWx917 Wi-Fi 6 SoC, the most IoT-optimizedWi-Fi System on Chip

Silicon Labs 2023 CSR  |  7	About Silicon Labs	Enabling a More	Fostering a Culture	Advancing Responsible &	Ensuring Ethical &	Appendix
	Sustainable World	of Innovation	Sustainable Operations	Responsible Governance

Awards, Recognition, & Ratings

Great Place to Work	Elektronik
Certified 2023	Reader's Choice Product of
	the Year Finalist, BG27

Best Workplace for	Leadership in Engineering
Commuters 2023	Achievement Program
	Awards
	Embedded Computing, Bronze,
	BG27/MG27 SoCs

Global Semiconductor	Embedded Computing
Association	Design
Most Respected Public	Best in Show Awards,
Semiconductor Company (Achieving	Connectivity, SiWx917 SoC
$1 Billion to $5 Billion in Annual Sales)

Ranker/Rater	2023 Score
	C

Institutional Shareholder Services

(ISS) ESG

Low Risk

Sustainalytics ESG Risk

A

MSCI ESG

Carbon Disclosure Project
Climate Change	C
Water Security	C

EE Times Awards Asia	Corporate Partner of the
Best Green Tech Supplier, FG28 SoC	Year and Silver Award at
the American Red Cross,
	Central, and South Texas
	region

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	Sustainable World	of Innovation	Sustainable Operations	Responsible Governance

Enabling a More Sustainable World

Leading the way for the Internet of Things with secure, intelligent, wireless technology

Silicon Labs is a leader in secure, intelligent wireless technology for the Internet of Things (IoT), a growing market of smart, connected devices being deployed in homes, industries, and cities worldwide.

Our products enable sustainable IoT solutions across home, medical, industrial, and commercial environments, including air pollution and waste management monitoring, water integrity, residential irrigation monitoring, street lighting networks, advanced metering infrastructure, and building energy management.

We lead the industry in high performance, low power, and security with support for the broadest set of multi-protocol solutions. Our passion for energy savings goes from chip-level design to system- level power consumption. We provide small, energy-efficient integrated circuits that can extend battery life by up to 25 percent, enabling fewer disposable batteries and reducing landfill waste.

Extending Battery Life

We are committed to reducing die sizes and improving product energy efficiency.

Cleantech Product Design Strategy

We innovate to improve our products and services for energy efficiency and productivity. Silicon Labs is focused on reducing die size to improve production yields, reducing energy consumption, and optimizing manufacturing processes. Our Series 2 products have been designed to meet the growing needs for low-power IoT devices, allowing devices to stay in the field for up to ten years on a single coin-cell battery. Our next-generation Series

3 platform aims to deliver even greater power efficiency.

With our Series 2 portfolio of products, we've been able to drastically reduce the die size by more than 50%, while also reducing energy consumption. This table shows the comparison in energy usage between our BG12 (released in 2016) and BG22 (released in 2020) along with other Series 2 products.

Series-1

BG12BG22

Battery-free IoT with Energy Harvesting

The US Environmental Protection Agency estimates that five billion consumer grade batteries are sold each year in the US alone, with billions more sold across the globe. These batteries pose an ongoing sustainability challenge due to risks of combustion, leaking chemicals into the environment, and by taking centuries to break down if they do at all. While some companies work on new battery chemistries for cleaner batteries, Silicon Labs is investing in research and development into energy harvesting to eliminate the battery problem altogether.

Energy harvesting leverages external sources of energy, such as solar, radio waves, and kinetic energy, to generate power for the device. It eliminates the need for batteries but requires that the power draw of the device be low in order to function on only these external sources of power. As a leader in low-power IoT, Silicon Labs is working to incorporate energy harvesting into its devices and expects to introduce new products soon that function within this power envelope. We're also forging partnerships with some of the leaders

in energy harvesting to usher in a new era of battery-free IoT.

Series-2

FG23 | ZG23

MG24

Product Released 2016

2020

2021

2022

Advancing Sustainability

Our technology powers IoT applications that are building a more sustainable world.

Securing the IoT

We were the first pure-play IoT semiconductor company to achieve PSA Certified Level 3.

TX | Transmit	8.5 mA @ 0 dBm	4.1 mA @ 0 dBm	25 mA @ 14 dBm	5 mA @ 0 dBm
RX | Receive	10 mA	3.6 mA	4.0 mA	4.4 mA
EM0 | Active	130 µA/MHz	22 µA/MHz	26 µA/MHz	31 µA/MHz
EM2 | Deep Sleep	2.9 µA	1.2 µA	1.2 µA	1.3 µA
EM2 | Wake Up	3.2 µs	5.1 µs	5.1 µs	5.1 µs

Silicon Labs 2023 CSR  |  9	About Silicon Labs	Enabling a More	Fostering a Culture	Advancing Responsible &	Ensuring Ethical &	Appendix
	Sustainable World	of Innovation	Sustainable Operations	Responsible Governance

Enabling a More

Sustainable World

Product Lifecycle

With continuously evolving software, security, and wireless ecosystems, we design our semiconductor solutions with the entire IoT product lifecycle in mind. Our wireless, sensor, and microcontroller hardware products come with a minimum 10-year lifecycle, and we support our customers every step of the way, from development, manufacturing, distribution, use and maintenance, as well as recycling. While our products do not fall within the defined scope of the European Community's Waste Electrical and Electronic Equipment legislation, Silicon Labs disposes of any products received in an environmentally safe manner.

Mindful of the circular economy, we use recycled/recyclable materials in the manufacturing and transportation of our products, and we require the same approach from our suppliers. The carrier tape, moisture barrier bags and carton boxes that we use are compliant with the European packaging and packaging waste directive 94/62/EC. Together with

our suppliers, we use recyclable carton boxes to ship our product and Silicon Labs uses reusable bubble wrap in all packaging.

Recycling

Use and	Product
Maintenance	Development

Distribution

Manufacturing

Silicon Labs 2023 CSR  |  10	About Silicon Labs	Enabling a More	Fostering a Culture	Advancing Responsible &	Ensuring Ethical &	Appendix
	Sustainable World	of Innovation	Sustainable Operations	Responsible Governance