Corporate Responsibility
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Corporate Responsibility Report 2005

Environmental Performance

Check Our Performance

Performance Overview

Measuring and managing our performance

STEV3; §10.3, 10.4 of Decalogue

ST certification: All our manufacturing sites are fully EMAS validated and ISO 14001 certified and have been since 1997.

Key performance indicatorSTSC4b; §8.3 of Decalogue

Supply chain certification: In accordance with our Environmental Policy, we strongly encourage both suppliers and subcontractors to become EMAS or ISO 14001 certified. In 2005, almost 69% of our key suppliers were ISO certified or EMAS validated. See the Supply chain section for more details.

STEV4; §1 of Decalogue

Results of regulation tracking: For more on ST's compliance with existing and future environmental legislation, see the section on Product responsibility.

STEV5, STEV6

Environmental accounting: The table below presents the total costs versus savings for the three key resources used in our industrial processes (energy, water, chemicals). The savings (in US$m) in a given year are calculated with reference to our performance in 1994. For a description of the accounting methodology used see our website.

STEV8, STEV35, STEV58: Environmental costs versus savings US$m
  2001 2002 2003 2004 2005
Total costs 30 32 35 35 34
Energy saving 33 59 78 102 123
Water saving 6 10 13 17 19
Chemicals saving 17 31 42 54 65
Total saving 56 100 133 173 207
Balance (cost saving) 26 68 98 138 173

The consistent year-on-year increase in savings is due in part to our constant efforts to reach our Decalogue objectives (in particular to save natural resources), and in part to the increased production activity, which leads to improved eco-efficiency.

STEV6: Environmental investments
% of total company investments
1994 0.16
1995 1.96
1996 2.45
1997 2.99
1998 1.90
1999 1.33
2000 1.83
2001 2.10
2002 1.20
2003 2.00
2004 0.75
2005 0.92

A significant part of 2005 investments focused on measures to reduce carbon emissions resulting from energy and PFCs.

Environmental awards

STEV19

External recognition: During 2005, our company, individual sites and staff have won various environmental awards:

  • Business week/climate group: ST ranked among the Top Ten Green Companies of the decade
  • National Italian prize for Sustainable Mobility (ST Agrate).

EN13; EN16

Fines and incidents: In 2005, there were no significant incidents having an environmental impact and no fines.

The Environmental Burden Method: the impact of emissions to air and water

STEV20

In 2001, ST began to use the Environmental Burden Method (developed with the World Business Council for Sustainable Development) to measure the global environmental impact of the company.

The table below shows our net figures for Environmental Burden since 2001.

 
STEV21; EN8, EN9, EN10, EN12: Environmental burden: net values
Emissions to air
Indicators Units 2001 2002 2003 2004 2005 Comments
Global warming MTCE 457,214 489,813 511,084 522,877 626,420 Includes direct greenhouse gas emissions from our manufacturing plants and indirect emissions from energy consumption and transport, reported in Metric Tons of Carbon Equivalence (MTCE)
Ozone depletion Kg R11 Eq 591 465 158 122 78 Deals with marginal releases of ozone-depleting substances measured in R11 equivalence
VOCs Tons 309.7 341.2 331.0 294.0 311.0 Reported as net volatile organic compounds emissions in tons
Atmospheric acidification Kh SO2 Eq 24,591 36,304 49,040 25,898 37,670 Total acidic emissions expressed in sulfur dioxide (SO2) equivalence
Photochemical ozone creation Kg ethylene Eq 29,320 97,640 84,478 59,401 46,767 Deals with the potential to form low-level ozone
Air emission toxicity Kg PH3 Eq 3,227 6,375 11,010 3,543 7,532 Emissions of substances are considered with threshold limit values below 3ppm, expressed in phosphine equivalent
Emissions to water
Indicators Units 2001 2002 2003 2004 2005 Comments
Eutrophication Kg [P + N] 345,603 281,650 253,464 177,122 227,910 Deals with phosphorus and nitrogen emissions
Aquatic oxygen demand Kg COD 699,790 498,670 476,562 518,935 443,870 Total Chemical Oxygen Demand (COD)
Heavy metals to water Kg heavy metals 20,269 16,192 18,731 19,520 17,522 Total heavy metals emissions
Aquatic ecotoxicity Kg Cu Eq 20,269 12,086 12,256 10,772 11,490 Includes mass emissions of various metals expressed in copper equivalent

Emissions to air

In general terms, absolute concentrations are low and all of our sites are well within local regulation limits. The increase year on year is due to increases in production, and does not take account of reforestation (see the carbon neutrality section).

Since 2002, we have been installing scrubbers (at Ang Mo Kio, Agrate, Rousset, and other sites) to reduce emissions to air, particularly of solvents (VOC and POC). Some other actions have been identified and will be implemented in 2006.

 
STEV22: Environmental burden: normalized values
  Front-end sites   Back-end sites
Emissions to air 2001 2002 2003 2004 2005   2001 2002 2003 2004 2005
Global warming 100 81.1 73.7 64.0 71.8   100 97.4 79.7 77.7 68.4
Ozone depletion 100 11.4 0.6 7.8 0.0   100 85.4 22.0 14.0 9.1
VOCs 100 90.3 74.7 56.5 52.76   100 155.8 130.6 126.4 114.0
Atmospheric acidification 100 129.8 150.0 68.8 87.0   100 65.8 78.2 27.7 79.7
Photochemical ozone creation 100 246.4 207.0 117.9 83.4   100 782.6 134.3 209.9 130.5
Air emission toxicity 100 164.4 250.5 68.9 131.0   100 138.1 86.3 21.9 22.5
  Front-end sites   Back-end sites
Emissions to water 2001 2002 2003 2004 2005   2001 2002 2003 2004 2005
Eutrophication 100 70.0 47.0 30.5 38.2   100 53.6 74.0 34.4 25.1
Aquatic oxygen demand 100 57.1 56.9 55.4 45.5   100 59.7 33.8 28.0 15.9
Heavy metals to water 100 69.6 69.1 46.0 34.2   100 59.0 61.6 79.1 70.7
Aquatic ecotoxicity 100 47.7 36.6 30.0 31.1   100 53.4 65.5 41.7 31.5

Emissions to water

Here also, absolute values are low and all sites are well within local regulation limits. The figures above take into account all effluent, both in surface water after it has left the waste water treatment station (where these exist), and water that goes directly to the sewer. They also take into account the fact that public water treatment stations are not able to eliminate heavy metals and are able to eliminate only 50% of phosphorus and nitrogen.

The table above presents the normalized values for the Environmental Burden indicators by total front-end (FE) and back-end (BE) sites against a baseline of 100 in 2001.

Eco-footprints

STEV23; EN1

We use eco-footprints to allow a fast, fact-based evaluation of environmental performance improvement and a comparison of data from different sites. The ratio of performance against the standard reference is plotted on a radar chart. A value equal to (or below) 1.0 means we are performing at (or better than) our standard.

In 2005 the total front-end eco-footprint value improved slightly from 1.44 to 1.39. Some parameters such as electricity or water consumption have improved, but some others (in particular emissions to air and to waste water) are not progressing and we have launched initiatives to reach our Decalogue targets.

In order to monitor improvements, eco-footprints are reviewed on a quarterly basis.

The back-end results are improving as well, and the corresponding eco-footprint has decreased from 1.02 to 0.94 in 2005. Most of the parameters are in line with our targets.

Front-end sites eco-footprints 2005
EFP = 1.39 (weighted average)
Back-end sites eco-footprints 2005
EFP = 0.94 (weighted average)