Creating value through a successful sustainability strategy
Our strategy is based on the Sustainability cornerstones and the United Nation’s Sustainable Development Goals. Sustainability governance principles are a core part of our business operations. Our commitment to continuous improvement is reflected in our Flex 20 by 2020 goals and the guiding vision of CEO Mike McNamara.
By designing and building intelligent products for a connected world, Flex helps customers compete and thrive in the Age of Intelligence™. But we’re also designing and developing products in a way that protects and promotes a healthy world. Our strategy and global efforts, through our multi-year 20 by 2020 goals, are aligned with the United Nations 2030 Sustainable Development Goals (SDGs), and focus primarily on decent work, quality education, clean energy and responsible consumption and production.
We’re committed to integrating sustainability into every aspect of our business and across the entire supply chain. Several global, regional and local initiatives and programs were created around our sustainability cornerstones, enabling us to achieve some remarkable results. Among our key accomplishments in CY16, Flex:
- Achieved rest day compliance for 99% of employees*
- Volunteered more than 48,000 hours globally
- Generated 12 GWh of electricity from solar sources
- Recycled ~734,000 m3 of water – 13% more than the previous year
- Recycled, composted or reused 71% of total waste
These accomplishments are just a few examples of our ongoing commitment to sustainability, which is a core part of our strategy at Flex. It’s how we deliver Sketch-to-Scale™ solutions with and for our customers, across every major industry around the world. Because sustainable living is central to who we are and how we operate, Flex is not only creating a smarter, more connected world, but each and every one of us is helping to create the conditions for a safer and healthier world, now and well into the future.
Thank you for your continued efforts.
Mike McNamara Chief Executive Officer
* This considers hourly workers in Brazil, China, Indonesia, Malaysia, Mexico, Singapore and the U.S.
Positively impacting Flex employees, partners, the communities where we operate and the broader world around us.
Employer of Choice: We develop and empower talented people to realize their full potential, providing employees with a healthy, safe and secure workplace
Partner of Choice: As the industry’s only Sketch-to-Scale™ solutions provider, we offer innovation and cross-industry expertise to design, develop and deliver products at scale
Investment of Choice: We’re committed to maximizing value for all our stakeholders by pursuing our vision and creating a simpler, richer life through technology. By combining innovative technologies, state-of-the-art manufacturing and sustainability, Flex is a leader in a market of one
People: Provide opportunities for decent work for Flex employees, respecting their dignity and striving to advance human rights around the world
Community: Volunteer time, talent and resources to make the communities where we live and work more livable and prosperous by providing opportunities for entrepreneurship and upward mobility
Environment: Committed to safeguarding the environment across the global supply chain so future generations can prosper
Innovation: Create intelligent products designed and manufactured with sustainability in mind
Integrity: Operate ethically and lead with integrity, earning the trust of our employees, customers, suppliers, investors and the communities where we live and work
Alignment to United Nations 2030 Sustainable Development Goals (SDGs)
Flex supports the SDGs, and we’ve aligned our strategy to the following key areas:
Quality Education: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Affordable and Clean Energy: Ensure access to affordable, reliable, sustainable and modern energy for all
Decent Work and Economic Growth: Promote inclusive and sustainable economic growth, full and productive employment and decent work for all
Responsible Consumption and Production: Ensure sustainable consumption and production patterns
Sustainability governance principles are a core part of our business operations. Our Code of Business Conduct and Ethics (CoBCE) applies to all Flex directors, officers and employees. The CoBCE incorporates the RBA (formerly EICC) Code of Conduct, making the RBA code a part of our governance system. The CoBCE is approved by the Compliance Directors, Chief Ethics & Compliance Officer, Legal Department, and Human Resources.
Sustainability council & executive sponsor group
Sustainability updates are delivered regularly to the Executive Staff via a Sustainability Executive Dashboard. In addition, a quarterly Executive Sponsor meeting is held with the following executives’ participation: CFO, Chief Ethics & Compliance Officer, General Counsel, Segment Presidents, Vice President of Marketing and Sustainability, Vice President of Corporate Social Environmental Responsibility, Vice President of Quality and Vice President of Audit and Risk Management.
Audit committee and board of directors
The Flex Articles of Association give our Board of Directors the authority to manage our business. The Board oversees the overall interest of the company, provides guidance on strategic business planning processes and oversees the business conduct of senior management. The Audit Committee, which is chartered by the Board of Directors, has oversight of the Corporate Sustainability Program.
Corporate sustainability leadership committee
The Corporate Sustainability Leadership Committee, a multidisciplinary group comprised by global directors and managers (including operations, customer facing, supply chain, regulatory compliance, metrics and communications), meets semi-annually to share information with individuals across various organizations who are directly responsible for implementing sustainability initiatives.
Ethics and compliance organization
The Ethics and Compliance program activities are driven by the Corporate Compliance Team, with oversight from our Audit Committee and our Compliance Executive Sponsors, and partnering with our Compliance Directors from across our company, who are subject matter experts in our various compliance areas.
We’ve targeted 20 goals by 2020 that align with the United Nations’ Sustainable Development Goals. These goals reflect our commitment to the highest sustainability standards. As good corporate citizens, we ensure that this is reflected in our global supply chain. Flex reports progress toward these goals twice per year.
Employee development - Increase the average training reach to employees by 5 percent year over year (Base year 2016)
Flex Pledge audits - Audit 100% of all Flex manufacturing sites to ensure regulatory and Flex Pledge compliance
Human Rights policy training - Train new employees on Flex Human Rights policy, with a 95% or higher completion rate*
Rest day compliance - Ensure full compliance with Responsible Business Alliance rest day requirements
Incident rate - Promote a zero injury culture and achieve a reduction in the global incident rate of at least 10 percent (Base year 2015)
*Does not include individuals who have recently joined Flex through acquisitions, employees on leave of absence and direct labor
Volunteer hours - Increase global volunteer hours by 15 percent (Base year 2015)
Percentage of sites with community activities - Maintain percentage of sites with implemented local community engagement activities at 90 percent or higher
Worker empowerment training program - Improve the technical and vocational skills of manufacturing employees by partnering with an NGO to develop a Worker Empowerment Training Program at 20 supplier sites
Flex Foundation community grants - Partner with nonprofit organizations to provide life-long learning, technical and vocational skills and innovation and entrepreneurship at 100 percent of our sites that have an employee population over 5,000
CO2 emissions - Reduce CO2 emissions by at least 10 percent normalized to revenue (Base year 2016)
Renewable energy - Increase the utilization of renewable energy by deploying a minimum of two megawatts of solar power annually and/or procuring the same amount of power from third party renewable sources
Water consumption- Reduce overall water consumption by at least 10 percent absolute (Base year 2015)
Water recycling- Increase recycled water rate to 10 percent (Base year 2015)
Waste diversion rate- Achieve and maintain a diversion rate of waste from manufacturing processes at or above 95 percent
Energy efficiency- Flex Energy Solutions will have manufactured enough solar PV modules and solar trackers to power 3.5 million homes
Energy costs - Flex Energy Solutions' renewable energy systems will provide electricity to the grid at a cost which is 5 percent less expensive than the average cost from fossil fuel sources
CoBCE training - Conduct in-person Code of Business Conduct and Ethics (CoBCE) training at 100 percent of Flex sites with direct labor employees
CoBCE training completion - New Code of Business Conduct and Ethics online training to be completed annually by 100 percent of eligible employees **Does not include individuals who have recently joined Flex through acquisitions, employees on leave of absence and direct labor
Supplier training - Increase percentage of suppliers (Flex Tier 1 and Flex-controlled) who complete social and environmental training by 10 percent annually (Base year 2015)
Supplier screening - Keep percentage of new Flex-controlled suppliers screened on social and environmental criteria at 85 percent or higher