Diodes recognizes that environmental responsibility is integral to producing world-class products. We understand the impact our operations have on the environment, the community, as well as the health and safety of our employees, contractors, and suppliers. We are committed to ensuring environmentally sustainable business practices and to help minimize the environmental impact of our supply chain.
Please refer to our Environmental Policy and Climate Change Policy. We expect our suppliers and vendors to also subscribe to standards and commitments described in these policies so that we collectively manage a responsible supply chain.
As such, Diodes has based its Code of Conduct on the Responsible Business Alliance (RBA) Code of Conduct, formerly the Electronic Industry Citizenship Coalition (EICC), to ensure that business operations are environmentally responsible and compliant, at a minimum, with applicable environmental laws and regulations of the countries in which they have operations. Diodes’ direct suppliers are expected to implement the Code of Conduct as well as an adequate management system to ensure continued compliance with this code.
Diodes internal manufacturing sites are certified to the ISO 14001 environmental management system standard. The expectation for external suppliers is to be ISO 14001 certified as well or, as a minimum, to submit a plan to become certified.
We enforce rigorous product compliance with the EU Directive regarding the Restriction of Hazardous Substances (RoHS) 2011/65/EU and the REACH Directive 2006/1907 on the Registration, Evaluation, Authorization and Restriction of Chemicals. We provide customers with information on the chemical composition of the materials used in our products, as further described in our master Certificate of Compliance (master CofC).
Diodes is also committed to conflict-free sourcing of Tin, Tantalum, Tungsten, and Gold—which are widely used in manufacturing in the semiconductor industry. These metals are derived from minerals that have a variety of sources around the world. One potential source has historically been the Eastern region of the Democratic Republic of Congo (DRC). That region is currently the site of armed conflict, and mining profits by local military groups there are reportedly contributing to human rights abuses, environmental damage, and theft from DRC citizens. Diodes Incorporated requires its suppliers to undertake reasonable due diligence with their supply chains to assure that these metals are not being sourced from the DRC or adjoining countries, unless they are purchased from smelters or refiners that are listed as “conflict-free” on the Responsible Minerals Initiative (RMI) website. Diodes Incorporated has surveyed its relevant suppliers of components and raw materials concerning the origins of these metals. The result of this survey, in the form of the RMI/CFSI reporting template, can be found in our Conflict Minerals Report.
Resource Conservation Efforts
We intend to protect and preserve the environment and provide a safe and healthy workplace for all employees. We are committed to the continual improvement of environmental protection and health and safety performance, as well as compliance with all applicable laws, regulations, permits, internal worldwide standards, and other social responsibility requirements to which we subscribe. We recognize the impact of our business operations on the environment, the ecosystem, and the communities in which we work and our employees reside. Consistent with our
commitment to environmental stewardship, and as reflected in our company Code of Conduct, we have policies and processes in place that incorporate assessment of environmental impact as part of our business decision making process. With a continual focus on resource use efficiencies, we re-use and recycle resources where possible, and we also adopt the following measures to provide an ecofriendly working environment:
Our resource conservation efforts not only contribute to overall operating cost reduction, in some instances, they are also recognized by local governments in the form of financial incentives. For example, in China, we received recognition for our deployment of an electricity online monitoring system and LED lighting projects.
We continue to review business opportunities and monitor local government initiatives and incentives so as to leverage innovative technologies and solutions to enhance energy cost savings and help reduce impact on climate change and greenhouse gas emissions.
Last Updated: June 2021
Diodes Incorporated designs, manufactures, and delivers high-quality semiconductor products to the world’s leading companies in the consumer electronics, computing, communications, industrial, and automotive markets. Our expanded product portfolio of discrete, analog, and mixed-signal products and leading-edge packaging technology are developed to meet our customers’ needs and we are committed to continual improvement. Our worldwide operations including engineering, testing, manufacturing, and customer service, enable us to be a premier provider for high-volume, high-growth markets.
Our commitments to environmental sustainability as a responsible corporate citizen are to:
• protect the health and safety of our employees and partners on a worldwide basis;
• comply with regulatory and other requirements;
• use natural resources, energy, and materials efficiently and reduce consumption where possible;
• substitute sustainable resources in place of non-renewable resources;
• recycle materials wherever practical and economically reasonable;
• minimize waste and dispose of waste safely and responsibly;
• implement specific measures to prevent and minimize hazards to humans and the environment including pollution prevention; and
• consult with and encourage the participation of all employees.
Our environmental policy has four main objectives:
• Regulatory Compliance: We will comply with or exceed applicable legal requirements, codes of practice and industry guidelines.
• Continual Improvement: We will consider environmental implications in making company decisions at all levels. We will reduce the impact of our emissions to air, land, water and the noise from our operations. We will promote waste minimization and take reasonable steps to facilitate waste recycling and insure waste disposal is handled in a safe and environmentally acceptable manner.
• Communication with Stakeholders: We will coordinate with relevant external bodies and work with our own employees to improve environmental performance. We will provide appropriate environmental training and self-monitoring at all levels, particularly those that impact health, safety, and environmental matters. We will record and investigate promptly any matters brought to our attention by members of the public or any regulatory bodies, taking appropriate action as necessary. We will actively promote environmentally sensitive behavior by our employees.
• Environmental Management System: We will manage our environmental responsibilities within the framework of ISO 14001. We will carry out periodic environmental self-audits as a means of setting objectives, monitoring achievements, and promoting further improvement. We will submit our environmental management system, performance and achievements to independent verification by third parties as appropriate.
Please click here for a PDF copy of our Environmental Policy
Last Updated: July 2020
Diodes Incorporated recognizes our responsibility as a global corporate citizen to do our part to minimize our contribution to climate change. Operating in a sustainable way benefits the economic, social, and environmental interests of our company, our employees, and the customers and communities we serve.
Climate change creates risks for our company and our industry. Our facilities are subject to the physical risks associated with increasing temperatures and extreme weather conditions. We depend on critical raw materials and natural resources that are subject to scarcity. We are subject to regulatory and legislative constraints which may impact the manufacture of our products.
As part of our business operations, we ship billions of semiconductor devices to our customers worldwide. During the design, development, and manufacture of those devices, we consume raw materials, chemicals, energy, and water. Our manufacturing processes produce wastewater and solid waste. Our operations generate greenhouse gases and other emissions that contribute to climate change.
Protecting the environment represents an important challenge and valuable opportunity to our operations and to the semiconductor manufacturing industry. To address this challenge, Diodes has prioritized reduced generation of greenhouse gases and improvements in energy efficiencies across our entire enterprise.
In addition to complying with all relevant regulations and established industry guidelines, Diodes is committed to establishing goals and objectives which reduce our overall carbon footprint and support energy conservation, reduced water usage, and minimized waste generation.
Please click here for a PDF copy of our Climate Change Policy
Diodes Incorporated recognizes that semiconductor manufacturing is an energy-intensive process with the majority of our energy being consumed within our wafer fabrication and assembly and test facilities. We are committed to lowering climate risks related to our global carbon footprint by applying responsible energy management, driving energy efficiency, and pursuing reduction of energy use at the manufacturing sites and office buildings we occupy across 31 sites worldwide.
In addition to managing our internal operations for increased energy efficiency, we also focus on developing and manufacturing semiconductor products to provide our customers with opportunities to reduce their carbon footprints with more energy efficient end applications when using our products.
Please refer to our Energy Policy that outlines our position on energy management.
Direct energy consumption at each manufacturing site is regularly measured, consistent with the requirements in SASB Code TC-SC-130a.1, to track the total energy consumed in gigajoules (GJ), the percentage of energy consumed that is supplied from grid electricity, and the percentage of energy consumed that is renewable energy.
As part of our commitment to operate in a sustainable manner, each plant also conducts regular energy assessments to identify opportunities for energy conservation and to increase the percentage of renewable sources in the energy mix that is accessible to the respective location.
The main energy source to power Diodes’ manufacturing facilities is electricity. In 2019 and 2020 Diodes manufacturing sites sourced 95.09% and 95.38%, respectively of consumed energy from the electric grid, decreasing our historic grid dependency down from 98.84% in 2018. The balance of energy was from natural gas, diesel fuel and long distance heat. Natural gas is mostly used for heating purposes and also for humidification control. Diesel fuel is primarily used for humidification control, and may be used for the operation of emergency power generators as well.
Percentage of Energy Consumed from Grid Electricity
We have increased our focus on more effective energy management to further reduce Diodes’ carbon footprint which enabled us to more accurately assess and report energy consumption with significantly more granularity. As a result, over the most recent 3-year timeframe we have seen an increase in the reporting of renewable energy consumption from our Diodes-owned factories across the globe. Our energy providers have also increased the information available to their customers regarding the energy mix being provided for consumption.
Overall, 21.54% and 23.47% of energy consumed by Diodes manufacturing sites in 2019 and 2020, respectively, came from renewable sources, up from 11.27% in 2018.
Percentage of Consumed Energy that is Renewable Energy
Energy Conservation Projects
All our manufacturing sites routinely seek new opportunities to drive energy management improvement initiatives and to achieve further reductions of Diodes’ global carbon footprint. The execution and implementation of these energy conservation projects, such as the ones listed below, are overseen by the Diodes Corporate Social and Environmental Responsibility (CSER) steering team. Recent examples include:
In 2020, Diodes kicked off a major energy conservation project, the construction of a combined heat and power (CHP) plant and absorption chiller with battery energy storage system (BESS) at our Oldham, UK wafer fab (OFAB).
Last Updated: July 2021
Diodes Incorporated recognizes climate change as a global risk as it affects the environmental, social, and economic landscape of the communities in which we live and work. Since semiconductor manufacturing is an energy-intensive process, our manufacturing sites as well as office buildings are contributors to our carbon footprint. The majority of our energy is consumed within our wafer fabrication and assembly and test facilities with energy required to maintain very demanding physical and climate conditions for production of our products in a clean room environment. We are strongly committed to reducing energy consumption and improving energy efficiency across our operations in our sites worldwide. In addition, we focus on developing and manufacturing products that help reduce power consumption and minimize energy requirements when included in our customers’ applications.
As a responsible corporate citizen, our commitments to minimize the impact on climate change are:
Click here for a downloadable PDF copy of the above policy.
Sustainable Water Management
Water scarcity is a topic of global attention as it presents a high impact risk to our planet. The semiconductor manufacturing industry is a water-intense business. Increasing complexity in semiconductor manufacturing processes may contribute to an increased need for water consumption and higher level of water purity. Our water comes from public sources as we rely primarily on local municipal supplies for our water source and do not use groundwater or rainwater. Water quality is essential to semiconductor manufacturing and there is a potential risk of water pollution that is under constant scrutiny, particularly in certain areas in Asia where we have manufacturing sites. Reliable continuity of water supply is critical to our operations and each manufacturing site is responsible for managing its specific water-related risks.
Sustainable use of an essential natural resource such as water is critical to safeguarding our business continuity and the communities around us. We are committed to managing water resources responsibly and we leverage industry best practices for efficient water management. Our water management efforts contribute to the United Nations’ Sustainable Development Goals target 6.4 aimed to substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity. Through our continuous and focused efforts to collect data and measure our water usage at each of our manufacturing sites, we identify opportunities to implement water conservation measures. We carefully monitor water usage across these manufacturing sites and set goals to minimize water consumption. We also maintain an environmental management system in accordance with the requirements of ISO-14001 to manage our water usage in a sustainable manner.
Water Usage and Operational Impact
We conduct water stress assessments by leveraging the Aqueduct Water Risk Atlas tool provided by WRI. Water stress is defined as the total annual water withdrawals (municipal, industrial, and agricultural) as a percent of the total annual available surface water. Industrialization and urbanization are key contributors to increased water stress levels, as observed in many parts in China. The water stress classification level identifies locations that have higher exposure to water-related risks. Based on the WRI tool, the water stress classification of our current manufacturing sites is as follows:
Water Stress Classification
Number of Manufacturing Sites
Locations of Manufacturing Sites
Low to Medium
Taiwan, Germany, England, and China (Chengdu)
The majority of our manufacturing sites are located in areas that are classified as having a Low or Low-to-Medium Water Stress level. We acquired the manufacturing facility located in Shandong, China, an Extremely High Water Stress location, as part of our acquisition of Pericom Semiconductor Corporation in 2015.
We assess the location and volume of water withdrawn for our manufacturing sites and the water-stress levels in these locations and actively monitor our water usage at these locations to contribute toward sustainable water stewardship. To ensure continuity of supply and minimize impact to our operations, we concentrate on water availability and demand challenges unless there are other relevant risks such as water quality, drought or flooding that may be material to our activities in these locations.
Consistent with the requirements in SASB Code TC-SC-140a.1, in addition to analyzing our operations for water risks and identifying activities that withdraw and consume water in locations with High or Extremely High Water Stress, we track the total amount of water that was withdrawn from the different sources and the total amount of water that was consumed in our operations, and the percentage of each in regions with High or Extremely High Water Stress. Our year over year progress is illustrated in the chart below. Please click here for a detailed view. We acquired Lite-On Semiconductor Corporation (LSC) in November 2020, therefore the 2020 chart does not include information from LSC.
Percentage of Water Withdrawn by Water Stress Level
Percentage of Water Consumed by Water Stress Level
Although the 2020 chart does not include information from LSC, as part of our corporate-wide water management program, the LSC manufacturing facilities are included in our assessment program. One of these manufacturing facilities is located in Shanghai, a High Water Stress location. In recognition of our water conservation performance at that manufacturing site, we received a “Water Conservation Enterprise” award from the Shanghai Water Authority and Shanghai Municipal Commission of Economy and Information.
As indicated in the chart, on average, less than 1% of the water used in our manufacturing operations was withdrawn or consumed in our Shandong manufacturing facility, an extremely High Water Stress location. In addition, as we continue to use water responsibly in our manufacturing operations, there is a year-over-year decrease in the total amount of water consumed at that facility. In 2020, roughly 30% of the amount of water used in our manufacturing facilities was withdrawn or consumed from locations with Low or Low-to-Medium Water Stress levels.
Diodes is constantly looking for ways to optimize water usage, implement water-saving technologies and manage water usage responsibly. Water reuse and recycling is a key aspect of the water conservation efforts within our manufacturing facilities. Semiconductor manufacturing equipment requires ultrapure water that is generated from a reverse osmosis water filtration process. Concentrated wastewater produced from this reverse osmosis process is graded and filtered for reuse in our manufacturing facilities where possible. Several of our manufacturing facilities are equipped to further recycle wastewater that cannot be sufficiently purified for manufacturing use. Such recycled wastewater, including condensate from facility air handler units, is used for non-potable facilities support such as landscape water supply or sanitation purposes. These water conservation activities reduce the amount of wastewater that is treated and returned to municipal sewer systems.
Our water efficiency data across the last several years show positive trends in wastewater reduction. In recognition of our efforts specific to our Shandong facility, which is located in an area classified as Extremely High water stress, we received a “Water-saving Corporate Enterprise Award” from the China Shandong Development & Reform Commission, Housing and Urban Development Office, and Shandong Industry and Information Technology Office. We are evaluating the installation of a 24-hour onsite water storage facility at certain manufacturing site(s) to further mitigate water scarcity and water withdrawal risks and the resultant impact to our production, in addition to recycling and reusing the water from our operations.
Our manufacturing sites in Chengdu, China and Germany have included water financial savings goals in their operational performance goals. Even in the absence of specific financial savings goals, each manufacturing site constantly strives to conserve water resources.
Investment in Water Conservation Projects
In 2020, as part of Diodes’ overall resource conservation efforts, Diodes made capital investments in excess of $200K USD to upgrade its DI (de-ionized) water treatment system at its manufacturing site in Germany. The resultant benefits include annual financial savings of more than $10K USD, reduced water consumption by more than 300 m³ per year, reduced electrical energy consumption by more than 30KWh per year, reduced chemical usage and reduced maintenance manpower requirements and associated costs. This cost-effective system upgrade also helps reduce potential water quality issues that may impact our products while extending the lifetime of certain of our manufacturing equipment.
California Proposition 65
California Proposition 65, officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986 , was enacted in November 1986. Proposition 65 protects the state's drinking water sources from being contaminated with chemicals known to cause cancer, birth defects or other reproductive harm, and requires businesses to inform individuals in the State of California about possible exposures to chemicals known to the State of California to cause cancer or reproductive toxicity and described in the Proposition 65 List. Learn more about Proposition 65 here.
Proposition 65 requires businesses to provide “clear and reasonable warning” to consumers if their products contain one or more of the chemicals on the Proposition 65 List. A Proposition 65 warning does not necessarily mean a product is in violation of any product-safety standards or requirements. While Diodes does not sell directly to consumers, our products will be incorporated in end products that are sold to consumers. As a component manufacturer, we have concluded that most of our products contain at least one substance included in the Proposition 65 List.
For products sold into the State of California, the following label, or similar, is affixed to the product packaging:
We regularly review the Proposition 65 List and reserve the right to amend this label as necessary.
Semiconductor manufacturing processes are complex and require the use of an assortment of materials and chemicals during the wafer fabrication and product assembly operations. We recognize the risks and unfavorable consequences on the environment and the health and safety of people, as well as our brand image, profits, and financial situation if the waste from our operations is not disposed of appropriately. We are fully committed to minimizing any waste generated from our operations and disposing of such waste safely and responsibly so as to protect the environment, and the health and safety of our employees and the communities in which we operate.
Our waste management programs cover various waste streams generated by our operations and products, and an analysis of our waste streams helps inform our use of the most appropriate waste segregation, treatment, and management approaches. Reducing waste at the source is a critical component of our waste management program. We prioritize actions and encourage employees to reduce, reuse, recycle, and recover whenever possible, rather than to dispose of waste to landfills.
Our various manufacturing processes can generate potentially hazardous waste, including chemical substances. We regularly monitor the type of waste generated from our manufacturing facilities, including both hazardous (e.g. batteries, accumulators, oily sludge, acid, resin) and non-hazardous waste (e.g. cardboard, paper, glass, food waste, plastic bottles, metal cans, wooden pallets). Both hazardous wastes and non-hazardous wastes are recycled, incinerated, or disposed of at landfills. We comply with applicable laws and regulations relating to the use, storage, and handling of chemicals, as well as the disposal of any potentially hazardous waste. Where appropriate, we engage waste management service providers to transport, treat, and dispose of waste generated from our operations.
In 2020, our manufacturing sites globally generated approximately 8% more hazardous waste than the prior year. Waste generation increased from the prior year due in part to an increase in production. We also experienced a one-time increment in waste in 2020 due the closure of a site in China and the associated waste disposition and the installation of a new bulk HCl tank and the requirement to flush the former tank prior to removal. We recycled 15% of our hazardous waste generated which reflects an increase of approximately 3% from the prior year. Recycled waste included solvents, oil, resin, acid, alkali, sludge, and its containers. We generated approximately 17% more in non-hazardous waste in 2020 compared to the prior year. Of this, approximately 54% was recycled, 26% was incinerated and 20% went to landfills.
Please refer to our sustainability website for more information on Responsible Use of Materials and Chemicals in our Products, including our compliance with RoHS (Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment) and REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) Directives. Consistent with SASB TC-SC-150a.1’s requirement to disclose the legal or regulatory framework(s) used to define hazardous waste and recycled hazardous waste, we use the following governing standards:
|China||PRC on Prevention and Control of Solid Waste Pollution|
|Taiwan||Waste Disposal Act|
|Germany||Thüringer Landesverwaltungsamt Abfallwirtschaft|
|UK||Special Waste Regulations 1996|
Waste Reduction Initiatives
We have implemented waste management programs and practices as part of our commitment to reuse and recycle materials. Cognizant of the potential hazardous impact of certain chemicals, where appropriate, we also have chemical waste management programs.
Our facilities around the world update their recycling programs periodically to decrease hazardous and non-hazardous waste generation and increase diversion rates, or the amount kept out of the landfills. This year, many sites are implementing improvements to our waste management. In China, we are committed to improve the water recycle systems for specific production steps, upgrade our lab and chemical waste collection system and renovate our waste storage and reclamation capabilities. In Germany, where we already meet stringent regulations, we are certified per the Eco-Management and Audit Scheme (EMAS) (Umweltmanagementsystem) and plan to install a deionized water equipment which will also provide savings to the company.
We leverage responsible packaging practices to reduce waste generation. This in turn reduces our overall shipping costs and positively impacts our financial performance. For example:
We also recycle production and packaging waste such as oil, solvents, cardboard, foam, plastics, bubble wrap, and paper products. This waste reduction initiative expands beyond manufacturing as we encourage our employees to engage in recycling activities, including using reusable food containers and drinkware. Recycled paper is used and employees are encouraged to use double-sided printing as part of our emphasis on encouraging the reduction of paper usage. Our printer fleet has been streamlined, and in most cases the printers’ default setting is set at double-sided printing.
The employee cafeterias at our manufacturing sites are an important focus of our waste management program. Instead of using disposable tableware, we provide durable, washable, and reusable tableware and food trays. We also raise employee awareness regarding food waste. Appropriately labeled bins (e.g. compostable, recyclables, landfill) at employee cafeterias help employees to optimize the sorting of food waste and reduce overall waste generation. Various non-food related sorting containers are also set up at numerous places (including conference rooms and offices) in both our manufacturing and non-manufacturing facilities.
Electronic Waste or E-Waste
Although Diodes does not directly manufacture any electrical or electronic end equipment, we share the global concerns over electronic products getting into landfills, contaminating groundwater, and creating environmental issues. We are committed to playing our part in the preservation and protection of our environment, and embrace the guidance in the Waste Electrical and Electronic Equipment Directive (WEEE Directive) aimed to reduce the amount of electrical and electronic equipment produced and to encourage reuse, recycle, and recovery.
In 2020, we generated 25% less in electronic waste from the prior year and once again recycled 100% of electronic waste generated at our manufacturing sites worldwide. Pursuant to the requirements of SASB TC-SC-150a.1, our electronic waste is transferred to third parties certified and licensed to handle e-waste. In China, we adhere to the Administrative Measures for Prevention and Control of Environmental Pollution by Electronic Waste; in Taiwan, we follow the Regulations Governing Administration of Reuse of Enterprise Waste; and in the UK, the Environmental Permitting (England and Wales) Regulations 2010.
The types of electronic waste we generate include scrap products, spare parts, and other electronic materials from production, as well as decommissioned computers, monitors, laptops, printers, and other electronic equipment previously used by our employees; decommissioned servers, storage equipment, and networking equipment previously used in our data centers; and obsoleted testing equipment previously used in our laboratories for the engineering testing and verification of our products and other purposes. The electronic waste generated from these items is disposed of in accordance with the applicable laws and regulations, and the decommissioning of any electronic equipment used in our operations is handled with special care and by specialized companies or the original suppliers, as appropriate.