Corporate Environmental Report

Environmental Decalogue
Appendix 2

At STMicroelectronics we believe firmly that it is mandatory for a TQM driven corporation to be at the forefront of ecological commitment, not only for ethical and social reasons, but also for financial return, and the ability to attract the most responsible and performant people.

Our "ecological vision" is to become a corporation that closely approaches environmental neutrality. To that end we will meet all local ecological/environmental requirements of those communities in which we operate, but in addition will strive to:

1.0 REGULATIONS

1.1 Meet the most stringent environmental regulations of any country in which we operate, at all of our locations worldwide.

1.2 Comply with all ecological improvement targets at least one year ahead of official deadlines at all of our locations, worldwide.

2.0 CONSERVATION

2.1 Reduce total energy consumed (by our manufacturing, buildings, etc.) per million dollars sold by at least 5% per year, with a 25% reduction by end 1999.

2.2 Reduce water draw-down (per million dollars sold) from local sources (conduits, streams, aquifers) by ³ 10% per year, through conservation.

2.3 Reduce total paper and paper products consumption by 10% per year.

3.0 RECYCLING

3.1 Energy - Utilize alternative energy sources (renewable/co-generation) to a meaningful degree (at least three pilot plants by end 1999).

3.2 Water - For all manufacturing operations, reach a level of 50% recycled water by end 1997 and 90% by end 1999.

3.3 Trees - Reach a usage level of 90% recycled paper, where we must use paper, by end 1995, and maintain that level.

3.4 Chemicals - Recycle the most used chemicals, for example for sulfuric acid recycle ³ 30% by end 1997 and 80% by end 1999.

4.0 POLLUTION

4.1 Air Emissions - Phase out all Class 1 ODS by end 1996. Contribute where we can to reduction of greenhouse and acid rain generating gases.

4.2 Water Emissions - Meet the standards of the most restrictive community in which we operate, at all sites, for waste water discharge.

4.3 Landfill - Achieve 100% treatment of waste at Level 1 to Level 4 of the "Ladder"concept preferably with a half life improvement goal of ² one year. The ladder concept is explained in Appendix 3.

4.4 Noise - Meet a "noise to neighbors" at any point on our property perimeter ² 60dB(A) for all sites, from end 1995.

5.0 CONTAMINATION

Handle, store and dispose of all potential contaminants and hazardous substances at all sites, in a manner to meet or exceed the strictest environmental safety standards of any community in which we operate.

6.0 WASTE

6.1 Manufacturing - Recycle 80% of manufacturing by product waste (metal, plastics, quartz, glassware etc.), with a half life for reduction goal of ² one year.

6.2 Packing - Move to ³ 80% (by weight) recyclable, reused, or biodegradable packing materials (cartons, tubes, reels, bags, trays, padding) with a half life improvement goal of, ² one year.

7.0 PRODUCTS AND TECHNOLOGIES

Accelerate our efforts to design products for decreased energy consumption, and for enablement of more energy efficient applications, to reduce energy consumed during operation by a factor of ³ 10 by the year 2,000.

8.0 PROACTIVITY

8.1 Proactively support local initiatives such as "Clean up the World", "Adopt a Highway", etc. at each site in which we operate and encourage our employees to participate. Undertake a lead in establishing such initiatives, with local authorites where none exist.

8.2 Sponsor an annual "Ennvironmental Day"at each site in which we operate involving the local community.

8.3 Encourage our people to lead/participate in environmental committees, symposia, "watch-dog" groups, etc.

8.4 Include an "Environmental Awareness" training course in the ST University curriculum and offer it to suppliers and customers.

9.0 MEASUREMENT

9.1 Develop measurements for and means of measuring progress/achievement on points 1.0 through 7.0 above during 1995, using 1994 as the baseline where applicable, and publish results in the Environmental Report annually.

9.2 Develop detailed means and goals to realize these policies and include them in Policy Deployment by the end of 1995.

9.3 Continue the existing Environmental Audit and Improvement program at all sites.

10.0 VALIDATION

Validate the EMAS standard, or equivalent, 50% of sites by end 1996 and 100% by end 1997. In the event the validating authority is not available, this schedule can be delayed, but only for this reason.