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Cadence Design Systems Inc.

CDNS.US | Computer programming activities

Cadence Design Systems, Inc. is a leading provider of electronic design automation (EDA) software, hardware, and services. The company's solutions are used by semiconductor companies, systems companies, and other electronics manufacturers to design and verify integrated circuits (ICs), systems-on-ch...Show More

Ethical Profile

Mixed.

Cadence Design Systems exhibits a mixed ethical profile. The company has invested $50 million in racial equity initiatives, supporting affordable housing and small businesses in Black and Latinx communities, and reports five years of gender and race pay parity in the US. However, its involvement in defense contracts, providing software for military applications to entities like the Naval Research Lab, draws scrutiny. A 2007 class-action lawsuit also alleged overtime pay violations. Environmentally, Cadence targets net-zero GHG emissions by 2040, reduced emissions by 33% since 2019, and aims for 100% renewable energy by 2025. Its products are designed to reduce customer SoC power consumption by up to 30%. Robust cybersecurity is maintained via ISO/IEC 27001 and SOC 2 compliance.

Value Scores

Better Health for All10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect40
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-20
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-20
-100100
Respect for Cultures & Communities20
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

10

Cadence's core remote patient monitoring system delivers significant health benefits, managing over 28,000 patients

1
and achieving a 100% increase in patients reaching goal blood pressure,
2
43% of diabetic patients reaching blood glucose goals,
3
and a 52% reduction in total cost of care for heart failure patients.
4
The company's solutions lead to substantial cost savings for patients, with a 50-52% reduction in total care costs for heart failure and hypertension patients.
5
Cadence actively reaches vulnerable populations, with 60% of its patients in rural or underserved U.S. areas,
6
and targets Medicare/Medicaid patients.
7
Globally, a partnership aims to provide affordable clean cooling technology to 2.8 billion people in low- and middle-income countries.
8
The company invests significantly in health innovation, including AI-powered care engines,
9
supercomputers for biotech,
10
and molecular design software for drug discovery,
11
having raised $141 million in total funding.
12
Cadence is CarbonNeutral® certified for four years
13
and actively works on clean cooling technology,
14
generating substantial positive health externalities.
15
It commits $50 million to racial equity initiatives,
16
addressing social determinants of health,
17
and its CEO advocates for policy changes to expand remote patient monitoring access.
18
The company supports the healthcare workforce by adding capacity to physician practices
19
and reducing clinician workload.
20
It emphasizes preventative health through proactive chronic disease management
21
and provides education on diet and exercise.
22
However, Cadence's privacy policy states it cannot ensure the security of user information, particularly information transmitted over networks they do not control,
23
and data privacy concerns are noted as a risk.
24

Fair Money & Economic Opportunity

0

Cadence Design Systems, Inc. is a provider of electronic design automation (EDA) software, hardware, and services, not a financial institution. The provided articles do not contain specific, quantifiable data points for the financial services-oriented KPIs under "Fair Money & Economic Opportunity" as they relate to Cadence's direct operations or customer base. While Cadence has committed $50 million to an impact investment program managed by RBC Global Asset Management to address racial wealth inequities, focusing on affordable housing, homeownership, and small business support for Black and Latinx communities

1
, this is an investment into a fund, not direct financial service provision by Cadence. Consequently, no KPIs can be scored based on the provided evidence, as they are not applicable to the company's core business.

Fair Pay & Worker Respect

40

Cadence Design Systems reported a CEO to median employee pay ratio of 150:1 for the 2024 fiscal year.

1
In 2023, the company achieved a low OSHA recordable injury rate of 0.1% with no lost workdays.
2
Cadence has also achieved global pay parity based on gender and US parity based on race for five consecutive years as of 2023.
3
Employee engagement is high, with 90% of employees stating the company is a great place to work in 2023.
4

Fair Trade & Ethical Sourcing

0

Cadence Design Systems is a member of the Responsible Business Alliance (RBA)

1
and updated its Supplier Code of Conduct in 2024 to align with RBA Code of Conduct 8.0.
2
This code prohibits forced labor and child labor.
3
The company tracks supplier compliance with its Supplier Code of Conduct.
4
Cadence also has a Conflict Minerals Policy Statement that requires suppliers to provide DRC conflict-free products.
5
Over 60% of 2024 upstream Scope 3 impact was calculated using supplier-reported data.
6

Honest & Fair Business

-20

Cadence Design Systems was fined $212 million in July 2025 by the U.S. Department of Justice and the Department of Commerce’s Bureau of Industry and Security for export control violations, which included a $72 million criminal fine, $45 million forfeiture, and a $95 million civil penalty.

1
The company's 10-K annual report for fiscal year end December 31, 2024, indicated no financial restatements.
2
All financial statements are audited by PricewaterhouseCoopers LLP.
3
Cadence maintains a formal whistleblower policy that allows anonymous reporting via secure web form or hotline, with outlined procedures.
4
An anti-corruption policy is in place, which includes pre-approval requirements for gifts, entertainment, and political and charitable contributions.
5
The company is subject to the U.S. Foreign Corrupt Practices Act and the UK Bribery Act, and its Supplier Code of Business Conduct prohibits bribery.
6
,
7

Kind to Animals

0

Cadence Design Systems Inc. operates in the technology sector, providing electronic design automation software, hardware, and services.

1
Its business model does not inherently involve animal testing, sourcing of animal-derived materials, animal agriculture, or practices directly impacting wildlife habitats.
2
The company has no documented activities or initiatives specifically related to animal welfare.
3
While its Supplier Code of Business Conduct emphasizes ethical practices, it does not specifically address animal welfare concerns.
4
Consequently, all KPIs related to animal welfare are not applicable to its operations.

No War, No Weapons

0

Cadence Design Systems is involved in the defense sector, supplying software and design tools to military research laboratories and defense contractors. This includes a $148,740 contract with the Naval Research Lab for software license renewal

1
and a $400,000 contract for software maintenance services for the Air Force Research Laboratory
2
. The company participates in initiatives such as Intel's USMAG Alliance
3
and the Department of Defense's SHIP-RF program
4
, supporting domestic chip design and RF/mixed-signal systems for military and aerospace applications. Cadence also collaborates with Northrop Grumman on advanced-node SoC projects for mission-critical applications
5
and acquired BETA CAE, which has clients like Lockheed Martin
6
. However, the provided articles do not offer specific quantitative data, such as the percentage of revenue derived from defense contracts, the scope of R&D investment in dual-use technologies, or details on ethical policies and compliance rates, which are necessary to assign scores according to the rubric's quantitative thresholds.

Planet-Friendly Business

-20

Cadence Design Systems achieved 100% renewable electricity procurement in 2024.

1
Its water use per revenue in 2024 was 29.31 m³ per $1 M.
2
The company's near-term and Net-Zero GHG reduction targets were approved by the SBTi in July 2024, aligned with the 1.5°C pathway.
3
Cadence aims for net-zero GHG emissions by 2040, with an interim target of 50% reduction by 2030.
4
The company consistently reported zero environmental compliance violations across multiple years. In 2024, 60% of upstream Scope 3 emissions were calculated using supplier-reported data, and 69% of spend was with suppliers that have set or committed to set science-based targets.
5
Cadence uses TCFD guidance and conducts climate scenario analysis for 1.5°C, 2°C, and 4+°C warming pathways.
6
In 2024, 39% of water withdrawal was sourced from water-stressed regions.
7

Respect for Cultures & Communities

20

Cadence Design Systems demonstrates a commitment to cultural respect through its internal training and community engagement. In 2023, 100% of its employees participated in unconscious bias training.

1
The company has no reported cultural appropriation incidents and no cultural site disruptions. Cadence also supports communities through a $50 million investment in affordable housing and small businesses in Black and Latinx communities across the U.S.
2
and its foundation donated $5 million towards environmental sustainability, STEM workforce equity, and cultural preservation.
3
The company hosts cultural events such as the Latinx Mercado Fiesta
4
and celebrates AAPI Heritage Month
5
, and partners with Special Olympics Northern California.
6

Safe & Smart Tech

0

Cadence pleaded guilty to one count of conspiracy to commit export controls violations in July 2025, resulting in $140.6 million in penalties to BIS and DOJ.

1
These violations, involving at least 56 unlawful exports of products and services valued at $45.3 million, occurred between 2015 and 2021.
2
The company is on a three-year probationary term and has committed to enhancing its export control compliance program, including annual audits, training, and risk assessments.
3
There are no documented data breaches. Cadence maintains ISO/IEC 27001, ISO/IEC 27017, and SOC 2 certifications, is ITAR Enabled, and is certified to the highest foundry security requirements from TSMC.
4
The company states it complies with various data protection laws globally, including GDPR and CCPA. Cadence employs a "shift-left" security practice with continuous security assessments, static, dynamic, and software composition analysis, and manual penetration testing.
5
Endpoints undergo monthly patching and scheduled vulnerability scans, while cloud infrastructure and components are continuously monitored for new exploits.
6
Single Sign-On (SSO), Multi-Factor Authentication (MFA), and role-based access are configured for its Cloud Platform.
7
Data is encrypted at rest and in transit, with key management enabled for the Cadence Cloud Platform.
8
Cadence has "AI Ethics and Diversity initiatives" aimed at mitigating biases and promoting ethical AI.
9
It states it detects, prevents, and responds to fraud or misuse of its Sites, and provides users with rights to access, rectify, erase, restrict processing, object to processing, and data portability.
10

Zero Waste & Sustainable Products

0

Cadence Design Systems reports that all packaging components are recyclable or compostable, with shipping envelopes and boxes being 100% recyclable.

1
The company achieves 68% recyclability in its product components.
2
Cadence has set a target to reduce waste by 40% by 2030.
3
Circular design principles are integrated into product development, utilizing AI and machine learning in design tools to optimize for efficiency, extend product lifecycles, and minimize electronic waste, with an emphasis on durability, modularity, and reusability.
4

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.