Better Health for All

Monolithic Power Systems (MPS) develops semiconductor-based power electronic solutions that are components for various applications, including medical devices

, but these products themselves have no direct positive or negative health impact. The company reported no incidents of non-compliance with regulations or voluntary codes concerning the health and safety impacts of its products and services during the 2024 reporting period and launched the MPSafe™ portfolio , applying rigorous safety standards relevant to medical devices . Regarding health externalities, MPS reduced its Scope 1-2 absolute GHG emissions by 18% in 2024 compared to a 2022 baseline . In 2024, 0.6% of its total waste generated was hazardous , and 94% of non-hazardous waste was diverted from landfill . The company complies with regulations on substances of concern and has policies for restricted and hazardous substances . During the COVID-19 pandemic, MPS developed an emergency ventilator . As a semiconductor company, MPS does not hold healthcare-related patents in the pharmaceutical sense, nor does it produce food or nutritional products, or products with addiction potential. It also does not conduct clinical trials or health research.

Fair Money & Economic Opportunity

Monolithic Power Systems Inc. operates in the semiconductor industry, focusing on power electronics solutions.

The company does not provide financial products or services, such as lending or deposit services to consumers. Therefore, the company has no direct alignment with the fair money and economic opportunity value, as its business activities do not involve financial services, consumer credit products, or financial inclusion initiatives.

Fair Pay & Worker Respect

In 2024, the company's CEO-to-median-employee pay ratio was 384:1.

Employee pulse surveys in 2023 showed a 90% positive job satisfaction score. The voluntary employee turnover rate in 2023 was 11%, derived from an 89% retention rate. In 2023, the global incident rate was 0.14%, and there were zero fatalities reported from 2019-2023. The company's largest testing facilities in Chengdu are ISO 45001 certified.

Fair Trade & Ethical Sourcing

MPWR updated its Conflict Minerals Policy in July 2024, requiring suppliers to use Responsible Minerals Initiative templates for tantalum, tin, tungsten, and gold (3TG) to prevent financing conflict

. The company requests data from 100% of its direct suppliers to ascertain mineral origin, ensuring they do not come from conflict-affected regions . In July 2024, MPWR revised its Supplier Code of Conduct, adopting the Responsible Business Alliance (RBA) Code of Conduct, which sets standards for safe working conditions, worker rights, and environmental operations . The company expects all suppliers to comply and may conduct site visits and inspections . MPWR adheres to the Uyghur Forced Labor Prevention Act (UFLPA), conducting due diligence to ensure no goods are associated with forced labor from the Xinjiang region and prohibiting dealings with suppliers on the UFLPA Entity List . Its Code of Social Responsibility, updated in June 2024, outlines standards for human rights, labor, health and safety, and ethics, aligning with the RBA Code of Conduct . MPWR's largest testing facilities in Chengdu, China, are ISO 14001 and ISO 45001 certified, with annual audits to assess environmental risks and improve processes .

Honest & Fair Business

Between February 8, 2024, and November 8, 2024, the company faced class action lawsuits alleging false and misleading statements regarding products offered to Nvidia, which led to a significant stock price decline.

The company has a comprehensive Whistleblower Policy that applies to all directors, officers, and employees of the company and its subsidiaries. New employees are required to sign an acknowledgment form confirming they have read and agree to comply with the Code of Ethics and Business Conduct. The policy provides multiple anonymous reporting channels, including toll-free hotlines for various regions, email, website, fax, and a mailing address. Employees can report concerns to the Audit Committee, and the policy assures protections against retaliation and confidentiality.

Kind to Animals

Monolithic Power Systems Inc. (MPWR.US) operates in the semiconductor industry, focusing on electronic systems

. The company's business model does not involve direct practices affecting animal welfare, such as animal testing, habitat destruction, or factory farming . There are no animal-derived products or inputs, nor any animal husbandry or captive operations under its control . Consequently, all animal welfare-related KPIs, including cruelty-free certification, alternative testing usage, humane certifications, wildlife conservation impact, ethical input substitution, supplier audits for animal welfare, cage-free sourcing, animal testing policies and volume, innovation investment in animal-free technologies, animal agriculture ethics, animal-free R&D collaboration, and public policy engagement on animal welfare, are not applicable to its operations .

No War, No Weapons

Monolithic Power Systems has implemented a comprehensive due diligence program for conflict minerals (3TG), adhering to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

This program includes supplier engagement, risk assessment, and policy implementation to promote responsible sourcing. The company also affirms compliance with the Uyghur Forced Labor Prevention Act (UFLPA), prohibiting suppliers from engaging with entities in the Xinjiang region and the UFLPA Entity List. Compliance is ensured through procurement policies and supplier audits, demonstrating a commitment to human rights and ethical labor practices.

Planet-Friendly Business

MPWR.US has not declared a net-zero carbon target year and has no public commitment to SBTi-validated climate goals through major frameworks, despite having a goal to reduce greenhouse gas emissions by 40% by 2030.

In 2023, 27% of the company's total energy consumption was sourced from renewables. For 2024, 94% of non-hazardous waste was diverted from landfill. In 2023, water use per revenue was 60 m³ per $1 million revenue. The company achieved an 18% reduction in Scope 1 and 2 absolute GHG emissions in 2024 compared to its 2022 baseline. Scope 3 emissions are currently being evaluated and estimated.

Respect for Cultures & Communities

Monolithic Power Systems' operations in the semiconductor industry do not directly interact with indigenous communities or cultural heritage sites.

Consequently, the company reports no cultural appropriation incidents, no cultural site disruptions, and FPIC processes are not applicable. Similarly, a social license to operate and formal partnerships with indigenous or local community groups are not applicable to its business model, and no specific cultural impact assessment protocol is in place due to the nature of its operations. There is no publicly available information regarding the reinvestment of revenue into local community development.

Safe & Smart Tech

Monolithic Power Systems (MPWR) monitors and implements changes to comply with international data protection laws, including China's Cyber Security Law and the EU's GDPR.

The company conducts real-time threat monitoring, penetration testing, and regular audits of data policies. Its cybersecurity framework aligns with the ISO/IEC 27001 standard, and employee training programs are in place to reinforce security awareness. MPWR acknowledges potential AI risks, monitors laws like the EU's AI Act, and restricts the use of third-party AI tools, emphasizing policies governing AI tool use.

Zero Waste & Sustainable Products

Monolithic Power Systems reported an 81% waste diversion rate from its global operations in 2023 through recycling and composting

. The company has implemented an Environmental Management System (EMS) compliant with ISO 14001 , with annual audits conducted at its largest testing facilities . MPS demonstrates a focus on circular design principles by developing products that enhance energy efficiency and reduce material consumption , with DC to DC converter products (94% of 2023 revenue) minimizing energy waste and material consumption . The company eliminated hazardous materials from its products, aligning with RoHS and REACH standards , and transitioned to lead-free soldering in 2021 . MPS is also actively working with vendors to enhance hazardous waste management by implementing additional recycling programs .