Disclosure on management approach

STEV1, STEV2

See our website for details of our management approach to the environment, including our Environmental Policy and details of our training activities to support the culture of environmental protection. See elsewhere in this report for our new Environment, Health and Safety Decalogue. References to different aspects of our management approach can be found throughout this performance overview section.

2005 environmental performance in context

As this report demonstrates, our CR work today looks at an ever-growing number of areas where we can exert a positive influence. But our reputation as a front-runner in the field is based largely on our pioneering work in keeping the environmental impact for which we are directly responsible to a minimum. In 2005, we put on hold some of our investments in environmental programs (e.g. reforestation), or delayed them as we focused on stabilizing our economic situation in challenging market conditions. Despite these circumstances, we maintained our strong environmental performance in key areas and our 2006 objectives reflect renewed activity and investments in a more stable economic context.

Information regarding values and indicators of environmental performance

As last year, we show absolute values for the whole company. We also refer to impact per unit of production (silicon wafers or finished products).

Some values presented in this report are given separately for front-end and back-end manufacturing sites, which produce different end products:

• Front-end sites produce finished silicon wafers of different diameters and different technological complexity. We have adopted a reference unit of an 8-inch wafer with a complexity level of 20 'masks' (photolithography processes).
• Back-end sites produce the finished product or 'package' (a silicon 'chip' assembled into a plastic or ceramic package). We refer to this finished product in million 'units.' In the sole case of energy, we refer to million 'pins' (wire connections on the package) because this is more suitable for measuring the consumption of electricity during the production process.

All environmental indicators cover about 85% of the company in terms of headcount (manufacturing and other major sites where R&D take place), but 100% in terms of manufacturing activity.

Environmental Performance data

View our environmental data by clicking on the topics below.

• > Measuring and managing our performance
• > Water
• > Chemicals
• > Waste
• > Carbon Strategy