Environment

Flextronics’ commitment to preserving the environment is evident as we continuously seek ways to design, manufacture, ship and service and ethically manage end of life product disposition in an environmentally conscious way. Flextronics' robust environmental strategy was developed to meet all legal requirements as well as support our customers' needs to be outstanding environmental stewards. Our strategy is aligned with our corporate mission to create value that increases our customers' competitiveness. All of our global manufacturing sites are either ISO14001 certified or have plans to implement this certification.

Flextronics' Strategic And Sustainable Response

In reponse to the myriad of environmental regulations and customer requirements, Flextronics created a holistic five (5) pillar Environmental Strategy that was built to withstand the test of time consisting of the following (All global operations and businesses will have environmental strategies aligned to this corporate strategy):

1. Chemical Substance Management
   Flextronics is proud to introduce our Next Generation System that enables us to collect and manage Full Material Content (FMC) from each of our Supply Chain partners. Obtaining FMC enables Flextronics to ensure that the products we make are fully compliant to any law or legislation. Flextronics is only interested in the ingredients and not the recipe for those suppliers that are concerned about their Intellectual Properties (IP). This tool is an industry leading environmental compliance information management capability that will definitely assist our customers in mitigating compliance risk while effectively handling all new environmental regulations.
2. Product Take-Back and Recycling
   The European Union (EU) and many other countries globally are requiring product take-back and the proper disposal of the end customers' electronic equipment. Utilizing our value added services enables customers to focus on what they do best while we work on the compliance aspect. At the products' End of Life (EOL), we may refurbish, remarket and resell into secondary markets enabling the extension of the products' life. We also ensure that any recycling and disposition of scrap materials are ethically disposed without risk of being dumped and discarded into landfills, especially in developing countries.
3. Pollution Control
   Flextronics complies with all laws and regulations surrounding the air, ground and water systems. We strive to ensure compliance by providing training, tools, processes and procedures that are environmentally friendly. Several excellent examples are evident in Guadalajara, Mexico and Zhuhai, China where waste water is recycled.
4. Resource Conservation
   Flextronics understands that we cannot utilize the earth's resources indefinitely and that moving forward we must understand the benefits of alternative forms of energy be it solar, wind, hydroelectric and/or nuclear power. Many of our manufacturing sites are evaluating alternative forms of energy with a few going through pilot programs involving solar and wind power. We do this by developing our global baseline consumption and then developing reduction plans.
5. Climate Change
   Reduction of Green House Gas Emissions (GHGE) along with Carbon Footprint are two of the key peformance indicators/focus areas at Flextronics. We are actively engaging all of our sites including design centers, manufacturing sites, logistics sites and office buildings to initially determine and subsequently reduce our carbon footprint. By reducing our carbon footprint internally as well as across our supply chain, we in turn reduce our customers' emissions leading to improved competitiveness while preserving our natural resources. We do this by developing our global baseline emissions and then developing reduction plans.
   

Management Structure And Process

We accomplish all of these activities through our Corporate Environmental Leadership Committee team made up of a virtual organization of regional directors, business unit and segment representatives and team members representing the following organizations: Technology and Design, Operations, Materials, Supply Chain, Procurement, Project and Program Management personnel, Business Development, and Marketing. A network of regional lead personnel manages effective site deployment ensuring global consistency. Corporate representatives proactively participate in the EICC, AeA, IPC and other industry associations whose charter is to influence the standards and specifications along with the legislation that are being introduced throughout the year.

Carbon Disclosure Project (CDP)

This project focuses on measuring and managing greenhouse gas emissions and the implications of climate change in terms of business risks and opportunities in all stages of production. In 2007, Flextronics participated in the CDP and published the results to selective customers. The participation provided us with an opportunity to analyze our greenhouse gas emissions and the use of energy in a structured way, yielding us various benefits, particularly in terms of cost savings. In that report, we identified greenhouse gas (GHG) emission sources and selected a GHG emissions calculation approach. We also collected the utility information in terms of energy consumption by fossil fuels and renewables. Subsequently, we converted them to emissions numbers by using the available conversion factors. Flextronics intends to continue the above reporting effort, not only in relation to CDP but other emerging protocols as well, such as:

• US Federal Environmental Protection Agency (EPA) - 2010 Emissions
• National Association of Insurance Commissioners (NAIC)