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Scope and Responsibilities

The Policy applies to Synopsys¡¯ global operations. Our Environmental Policy is maintained on our global Synopsys website and is designed to work in harmony with other relevant policies within our organization, including our Supplier Code of Conduct.

We recognize our own impact on the environment and aim to manage it responsibly. Our approach to environmental stewardship focuses on key areas that support and drive our business forward.  We commit to operating our business responsibly and in compliance with all environmental laws and regulations within the countries we operate. Synopsys also encourages and supports our stakeholders, including our vendors and customers, to uphold applicable environmental legislation within the countries they operate and act in an environmentally responsible manner. We further commit to continuous improvement within our key environmental focus areas, as markets and technologies allow.
 

Environmental Focus Areas

• Innovation: As Synopsys works to meet the demand for advanced design solutions that enable greater speed, power, and reliability, we are committed to improving energy efficiency across the technology industry. Our innovations and solutions are helping customers optimize energy efficiency in the design and use of chips and systems while also reducing energy consumption, water use, and waste in semiconductor manufacturing.  
• GHG Emissions: We aim to reduce our climate impacts through energy efficiency and decarbonizing our operations where technologically feasible. Validated by SBTi, we are committed to reducing our emissions targeting a 55% reduction in absolute Scope 1 and 2 emissions and a 62% reduction in Scope 3 emissions intensity? by 2032 (against a 2019 baseline). 
• Sustainable Buildings: We commit to integrating high standards of environmental performance to the design and operation of our buildings and data centers. We are also committed to achieving LEED Certification, BREEAM Certification or comparable construction standards in our new facilities and where possible in existing and leased operations.
• Carbon Free Energy: An integral part of our emissions reduction strategy includes carbon free energy. We are increasing our use of renewable energy and pursuing partnerships where feasible in support of clean energy alternatives in the regions where we operate. 
• Water Stewardship: We are committed to being good stewards in the communities we operate by improving the efficiency of water use in our facilities. We commit to improving the efficiency of water use in our facilities and implementing water reuse solutions where feasible, prioritizing our stewardship efforts in water scarce regions. 
• Waste and Recycling: We manage our resources and waste in line with circular economy principles. We contract with a responsible recycling certified IT asset disposition vendor to refurbish and dispose of all non-functional and unrepairable electronics responsibly. 
• Environmental Health & Safety: We are committed to safeguarding our workforce and the communities we operate in. We maintain policies and programs that prioritize safety, proactive hazard recognition and control, emergency preparedness, comprehensive training, responsible chemical management, personal protective equipment (PPE), and water and air quality testing.
• Supply Chain Engagement: We work with our suppliers to educate and inform them on best practices for environmental stewardship, including setting carbon reduction targets and developing a stewardship management model. As (RBA) members, our Supplier Code of Conduct details standards on labor, governance, health and safety, and environmental and ethical practices, mirroring that of the . Validated by SBTi, Synopsys commits that by 2027, 45% of purchased goods and services and capital goods suppliers (based on spend) will have their own SBT aligned emissions reduction targets.
• Industry Collaboration: We understand the importance of industry collaboration to create impactful changes. We are members of the (CEBA), , and . Through these partnerships, we commit to advancing renewable energy, setting ambitious emissions reductions goals, supporting climate friendly policies, and engaging our supply chain to drive sustainable practices. 
   

Synopsys continues to operate in line with the best environmental practices where possible and looks for opportunities to mitigate adverse impacts.
 

Disclosures

Synopsys is committed to transparency and disclosure, and we communicate our policies and progress to our customers, business partners, employees, and third parties. We release an annual report on our website providing information about environmental, social and governance matters in line with applicable external reporting standards. We also report our emissions and targets progress annually to and complete an annual assessment for our customers. 
 

Governance

The Corporate Governance and Nominating (CGN) Committee of the board of directors is responsible for overseeing policies, practices, priority and risk assessments, risk management, initiatives, goals and progress relating to environment, social and governance matters. An internal management team manages Synopsys¡¯ environmental strategy and guides its execution, with input and direction from the C-Suite-led Climate Action Steering Committee and cross-functional Leadership Committee, and in alignment with the expectations of our key stakeholders. The team reviews performance against Synopsys¡¯ goals and adjusts our approach as needed.

Synopsys will review this policy annually and update it when necessary to address applicable changes in environmental issues and requirements. 
 

Related Policies and Processes

The Policy is supported by other Synopsys policies and statements including but not limited to privacy, bribery and corruption, as well as health and safety.  

• Code of Ethics and Business Conduct
• Conflict Materials Policy
• Privacy Policy
• Supplier Code of Conduct 

 ? (a) GHG emissions from employee commuting and business travel, per employee and (b) from use of sold products, per lifetime verification task.