Better Health for All

Tower Semiconductor reported zero fatalities and zero cases of recordable work-related ill health in both 2022 and 2023.

The company had 4 high-consequence work-related injuries in 2023 (down from 8 in 2022) and 16 recordable work-related injuries in 2023 (down from 29 in 2022). It aims to reduce accidents by 50% by 2030. The company had zero known data breach events, leaks, or theft between 2021 and 2023, and zero customer complaints regarding privacy or data loss during the same period. It is compliant with global privacy regulations including GDPR. The company's operations generated 257 metric tons of Scope 1 CO2eq and 155 metric tons of Scope 2 CO2eq in 2023, with a target to reduce absolute Scope 1 & 2 emissions by 15% by 2030 (2022 baseline). It reduced hazardous waste landfilled by 42% and achieved a 50% diversion rate for hazardous waste in 2023. The company recycled 856 thousand cubic meters of water annually between 2021 and 2023. Tower Semiconductor supports youth clubs, provides school supplies and educational toys to children in need, and participates in local food bank events, packing over 19,000 lbs of food in San Antonio, TX in 2023. It also offers stress management training to employees. The company discloses its GHG Emissions Report for CY 2024 and external audit SGS Reports on its website. It uses a structured framework for risk identification and has an Integrated Business Continuity Plan with annual tests.

Fair Money & Economic Opportunity

Tower Semiconductor Ltd. is a specialty foundry that manufactures integrated circuits, not a financial institution.

The company does not offer lending, deposit, or other consumer financial services. Therefore, all KPIs related to financial products, services, customer credit, savings, debt, or financial literacy initiatives are not applicable to its core business model. The company has no loan/insurance book, no APRs or fee structures for consumers, and does not manage customer finance data. While the company engages in various community support and employee development programs, these do not fall under the specific definitions of the KPIs for 'Fair Money & Economic Opportunity' which are tailored for financial service providers.

Fair Pay & Worker Respect

In 2023, 10.7% of Tower Semiconductor's global employees were covered by collective bargaining agreements.

The company's recordable work-related injury rate (TRIR) was 0.47 in 2023, a decrease from 1.10 in 2022, with zero fatalities reported in both years. The overall employee turnover rate in 2023 was approximately 10%. From 2021 to 2023, there were no validated incidents of discrimination, and one alleged case was reviewed by the EEOC and subsequently dismissed. The company offers a benefits program, including medical, dental, and vision insurance, to regular full-time employees working a minimum of 30 hours per week. Eligible employees can enroll family members, though a $35 monthly surcharge applies for spouses/domestic partners who have other coverage options. Basic Life and AD&D insurance are fully paid by the company, providing coverage of 2x annual earnings up to $1,250,000, with a minimum of $40,000.

Kind to Animals

Based on the provided documents, there is insufficient evidence to assess Tower Semiconductor's alignment with the 'Kind to Animals' value. The company's CSR reports and other documentation focus on environmental sustainability, labor practices, and supply chain management, but do not contain any data related to animal welfare, animal testing, or the use of animal-derived products.

, , , The materiality analysis indicates that Tower Semiconductor's business model is fundamentally neutral to this value, as its operations primarily involve semiconductor fabrication, which does not inherently impact animal welfare. Therefore, a neutral score of 0 is assigned due to the lack of relevant information. The supplier audit process is focused on labor practices, environmental concerns and conflict minerals. ,

No War, No Weapons

The company's Corporate Governance & Nominating Committee oversees social and environmental responsibility.

A 'Conflict Minerals Oversight Team' exists, and senior management is periodically briefed on conflict minerals compliance. The company states it serves the 'aerospace and defense' market and supports Northrop Grumman, a defense contractor, for 'advanced weapons, aircraft, missile defense, and space,' but no information is provided on the percentage of exports covered by verifiable end-user certificates. The company's conflict minerals policy states it reserves the right to discontinue purchases from non-compliant suppliers, committing to divestment within 12 months of new conflict exposure. Human rights due diligence is conducted annually through participation in the Responsible Business Alliance (RBA) self-assessment questionnaire for all wholly-owned facilities, and suppliers are required to submit a Conflict Minerals Reporting Template (CMRT) annually. The company's due diligence is designed to conform to the OECD’s 'Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected And High-Risk Areas,' and it expects suppliers to protect human rights. The company's social responsibility principles are modeled on the Responsible Business Alliance (RBA) Code of Conduct. An annual supply chain survey of direct suppliers of tungsten and tantalum is conducted using the CMRT. The company does not knowingly use any non-conflict-free minerals, but tungsten and tantalum were used in most wafers processed in 2023 and 2024. Smelters or refiners sourcing tungsten and tantalum from Covered Countries were identified in the supply chains of several direct suppliers, though all identified were RMAP conformant. The company's code of ethics for suppliers requires them to ensure products do not contain metals from conflict regions that finance armed groups, but no specific compliance rate is provided. The company has adopted a conflict minerals policy to ensure it does not incorporate conflict minerals into manufactured items, but evidence of legacy contracts or indirect ties via subcontractors is not explicitly ruled out.

Planet-Friendly Business

Tower Semiconductor's 2022 Scope 1 and 2 emissions were 475,000 tCO2e, with a target to reduce operational GHG emissions by 15% by 2030.

As of 2023, the company is ahead of schedule, having achieved 88.4% of the planned reduction, which implies current Scope 1 and 2 emissions of approximately 412,015 tCO2e. However, Scope 3 emissions measurement is only planned for FY2024. The company plans to have its targets validated by the Science Based Targets Initiative (SBTi). Tower Semiconductor has a net-zero target for 2050. Approximately 20% of purchased electricity globally comes from renewable sources, with a 24% increase in renewable energy from the grid between 2022 and 2023. A photovoltaic system in Israeli facilities has a potential yearly production of 1700 MWh. The company achieved a 50% hazardous waste diversion rate in 2023 and aims to reduce hazardous waste by 20% by 2030 compared to 2022. There were no complaints, legal proceedings, or fines regarding environmental issues in Israel or the US during the reported period. Facilities in Israel and Newport Beach, CA, face extremely high water stress, and the Texas facility faces medium-high water stress. The company supports the Global Awareness Investigation and Action (GAIA) Program, which includes wildlife preservation and endangered species sanctuaries, and employees have participated in local invasive plant removal. Initiatives include a system for removing hydrogen peroxide from used sulfuric acid for reuse and reverse osmosis treatment of brine to cut disposal by half.

Safe & Smart Tech

Tower Semiconductor reported zero known data breach events, leaks, or theft between 2021 and 2023, and no customer complaints regarding privacy or data loss during this period.

The company experienced a ransomware attack in September 2020, which caused a temporary shutdown of production and required a payment of hundreds of thousands of dollars to restore operations. An AI policy was implemented in October 2023, outlining guidelines for AI use, risks, and data protection, and all employees received training on responsible AI use. The company is compliant with GDPR and local privacy regulations, and aligns with the ISO/IEC 27001 Standard and NIST Cybersecurity Framework. Tower Semiconductor provides annual information security and cyber awareness training with a participation rate of over 98% among all employees, including face-to-face cybersecurity training for new employees each quarter. Portable devices and media must be protected by password or data encryption. The company conducts periodical audits regarding the status of handling personal information and restricts access to areas where personal information is handled. Users have rights to request correction, deletion, and opt-out of direct marketing. The company states it collects only necessary data and uses personal information within the extent necessary to achieve specified purposes. There were no significant cases of non-compliance with regulations or monetary fines between 2021 and 2023.

Zero Waste & Sustainable Products

Tower Semiconductor achieved a 50% diversion rate for hazardous waste in 2023.

The company has implemented waste reduction initiatives, including a Waste Minimization Committee at its Newport Beach, California site, and utilizes various recycling methods for hazardous waste such as sulfuric acid and brine. It maintains strict measures for the safe use, handling, and disposal of hazardous materials, actively recycling and reducing hazardous waste sent to landfills. The company reported no complaints, legal proceedings, or fines regarding environmental issues in Israel or the US during the reported period. Tower Semiconductor has a target to reduce hazardous waste by 20% by 2030 compared to 2022. Its supplier audits assess ESG aspects, including transparency, labor systems, health and safety practices, and ethics, requiring suppliers to comply with Tower's Code of Conduct.