SUSTAINABLE DATASPHERE FISCAL YEAR 2018 GLOBAL CITIZENSHIP ANNUAL REPORT 002 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
REPORT CONTENTS
Message from the CEO ...... 004 Summary of Performance ...... 085
About This Report ...... 006 United Nations Global Compact (UNGC) Content Index ...... 087 Company Profile ...... 009 Global Reporting Initiative (GRI) Global Citizenship Highlights ...... 012 Content Index ...... 088 Governance and Ethics ...... 015 Environment, Health, and Safety Product Sustainability ...... 021 Policy, APRIL 2018 ...... 097
Environmental Sustainability ...... 033 Human Rights Policy ...... 098
Our Employees ...... 052 Stakeholder Engagement ...... 101
Community Engagement ...... 071 Acronym Index ...... 103
Supply Chain ...... 075
Business Continuity ...... 082
The Fiscal Year (FY) 2018 Global Citizenship Annual Report describes Seagate’s approach to advancing sustainable and responsible business practices in all aspects of its products, services, and operations. This report provides highlights, insight, and context for our FY2018 performance and metrics for FY2019 and beyond.
Inquiries regarding this report should be directed to [email protected].
INTRODUCTION 01 REPORT CONTENTS 004 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER (CEO)
The ways we create, share, and interact amounts of data, Seagate products with data are changing. From the cutting embody the spirit of sustainable business, edge of artificial intelligence to the posts reflecting the expertise, dedication, and we share on social media, never before passion of our global workforce. has the datasphere been so diverse— As a signatory of the United Nations and the demand for fast, reliable, and Global Compact (UNGC) and a secure data storage solutions so great. founding member of the Responsible For the past four decades, Seagate has Business Alliance (RBA), Seagate is innovated solutions and driven positive committed to upholding the highest change throughout the data storage standards of ethical conduct, and I industry and our world. Our purpose affirm this commitment. is to craft the datasphere, and do so As we continue on our journey of while delivering sustainable value to our productive global citizenship, I am customers, employees, and stakeholders. pleased to share with you Seagate’s Guided by our Seagate values of progress throughout the fiscal year Innovation, Integrity, and Inclusion—and 2018 (FY2018). While I am proud of over 40,000 strong—Seagate remains our accomplishments, I look forward committed to this goal of crafting the to continued achievement throughout datasphere. We understand that global FY2019 and beyond, as we work to build citizenship is not something we do, but a better, more sustainable future. something we embody. Our efforts to be sustainable and productive citizens Thank you, are deeply embedded in the way we do business.
From our work to improve product Dave Mosley circularity to creating technologies that consume less energy while storing greater
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WE HOLD OURSELVES ACCOUNTABLE TO ALL THE WAYS WE IMPACT PEOPLE AND OUR PLANET, WHICH WE UNDERSTAND IS THE ONLY VIABLE WAY TO ACHIEVE OUR VISION OF CRAFTING THE DATASPHERE. THIS REPORT IS OUR COMMITMENT TO TRANSPARENTLY REPORTING THOSE IMPACTS AND HOW WE WILL ALWAYS STRIVE FOR CONTINUOUS IMPROVEMENT.
DAVE MOSLEY, CEO
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About This Report
This report covers activities managed and data storage services. All of these by Seagate Technology Public Limited products and services are shipped Company (PLC), an Irish public limited under the Seagate, LaCie, and Maxtor company, from July 1, 2017 through brand names. All of Seagate’s products June 29, 2018, our 2018 fiscal year. meet regulatory requirements for health References to “Seagate,” “we,” “us,” and safety in all jurisdictions where “our,” and the “Company” within this we do business. Additionally, Seagate report refer to Seagate Technology, does not have any of its products or PLC and its subsidiaries. References to services banned in any markets where “$” are to United States (U.S.) dollars. we do business. References to our There were no significant changes major locations are defined as locations to Seagate and the Supply Chain that contain more than 500 Seagate or restatements of information from employees. previous reporting periods. We are a leading provider of electronic data This report is published annually and storage technology and solutions. our previous Global Citizenship Annual Our principal products are hard disk Reports can be downloaded from the drives, commonly referred to as Seagate website at www.seagate.com, HDDs, disk drives, or hard drives. including the FY2017 report, which In addition to HDDs, we produce covers Seagate’s reporting cycle a broad range of electronic data from July 2, 2016 through June 30, storage solutions, including solid 2017. The Seagate website contains state drives, solid state hybrid drives, information about our company’s Peripheral Component Interconnect history, products, values, management, Express cards, and Serial Advanced and our most recent financial Technology Attachment controllers. performance. More information, Our storage technology portfolio also including our net sales and other includes storage subsystems, high- financial disclosures, can be found in performance computing solutions, Seagate’s Annual Report.
Inquiries regarding this report should be directed to [email protected].
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Defining Report Content
Using the Global Reporting Initiative business activity that resulted in both (GRI) Sustainability Reporting direct and indirect (through business Standards 2016 and the GRI 102: relationship) impacts on issues internal General Disclosures 2016, Sustainable and external to Seagate. The third Datasphere: FY2018 Global party who conducted the assessment Citizenship Annual Report applies the covered a wide range of issues to principles of materiality, stakeholder validate which were of importance to inclusiveness, sustainability context, Seagate and our stakeholders, and and completeness for defining report those which were of lower priority. content in accordance with the core No aspect was intentionally excluded reporting guidelines. This report from the scope of the assessment. contains Standard Disclosures from Stakeholder feedback gathered the GRI Sustainability Reporting during the materiality assessment Standards 2016 (the Standards). A list helped to shape the content of this of the Standard Disclosures and their report. Seagate’s FY2017 materiality locations within this report can be found assessment considered global at the back of this report. In FY2017, citizenship impacts both inside and Seagate conducted a materiality outside the company, such as impacts assessment to identify, prioritize, and to our customers, employees, global validate the aspects that are most partners, and supply chain. These material to our operations. This included aspects make up the content and reviewing external trends across structure of this report. The aspects social and environmental dimensions that we identified as material to our and speaking with both internal and business can be categorized into external stakeholders to develop a governance and ethics, product comprehensive understanding of how stewardship, environmental various issues influenced decision- sustainability, our employees, supplier making. Seagate’s FY2017 materiality engagement, community engagement, assessment considered aspects of our and business continuity.
After reviewing our business operations in FY2018, there has been no significant change to the business, and so the FY2017 materiality assessment is sufficient. We will, however, conduct a new materiality assessment in FY2019.
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Management Approach
Seagate aligns to the Business Process expected results. These performance Management (BPM) approach in metrics are shared in this report. Our managing the aspects of our business internal audit program ensures that that are material. In most cases we the controls are effective in managing have management programs which the risk and opportunities. Based on are detailed in Corporate Standard the performance metrics and audit Operating Procedures. These results, actions are taken to improve the procedures are periodically reviewed to programs. Economic, environmental, ensure they are current. Many program and social programs are managed areas have performance metrics to by the functional departments, with measure the effectiveness of the oversight by senior management who management program in delivering the report directly to the CEO.
Materiality Assessment
Nondiscrimination HIGH Transparency and Emissions, Effluents, and Reporting Waste
Chemicals Energy Responsible Sourcing Management Human Rights in Supply Chain Occupational Health Management and Safety Procurement Practices OTHER Conflict OTHER Child Labor Life Cycle Impacts of Minerals OTHER Products Labor/Management OTHER Relations RBA Compliance
OTHER OTHER
OTHER OTHER OTHER IMPORTANCE TO STAKEHOLDERS TO IMPORTANCE OTHER OTHER OTHER
OTHER OTHER
LOW HIGH IMPORTANCE TO BUSINESS SUCCESS REPORT CONTENTS 02 ABOUT SEAGATE
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SEAGATE OVERVIEW
Seagate’s products enable people and organizations around the globe to safely store, share, and interact with data. From treasured family photos to life-critical cancer research data, Seagate’s products are trusted by millions of people with their most sensitive and precious information.
Since our beginnings in 1979, Seagate constantly search for opportunities has proven itself as an innovator and to make our products better—not disruptor in the storage industry. only for our customers, but also From pioneering the world’s first 5.25- for our environment and planet. By inch hard disk drive (HDD) in 1980 harnessing the power of sustainability, to breaking the areal density barrier we can design drives that consume with the first-ever HDD with one less energy while delivering increased terabyte (TB) per platter in 2011, our storage capacity. This is just one commitment to innovation—backed example of what we call the sustainable by industry-leading expertise and datasphere. precision engineering—is at the heart As a leader in our industry, we have of all we do. a responsibility to do the right thing— But innovation means much more to us even when doing so may not be than setting standards of capacity and easy. Guided by our core values of performance. It means that we must Innovation, Integrity, and Inclusion, Seagate is committed to setting the standards to which we and others in our industry adhere. This is why we are a proud signatory of the UNGC and a founding member of the RBA. Our highest areal density drives enable higher capacity The road to a brighter, more in the same footprint, scaling sustainable future is one we must up your Petabyte! Helium- walk together. By leveraging critical enabled low power and partnerships, Seagate works to deliver weight, plus the capability to manager performance gives sustainable value to employees, additional power savings. stakeholders, and customers, while protecting the planet we share.
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OUR COMMITMENT TO INNOVATION—BACKED BY INDUSTRY-LEADING EXPERTISE AND PRECISION ENGINEERING—IS AT THE HEART OF “ ALL WE DO.
With HDDs continuing to dominate the manufacturing, and delivery for all our storage landscape, Seagate serves products. It is this level of autonomy a wide variety of markets, including that enables us to not only innovate Enterprise Storage, Edge Compute, superior solutions, but to do so in Edge Non-Compute, Enterprise Design the most sustainable way, ensuring Solutions, major subcomponent compliance and uniformity across our manufacturers, hardware storage global footprint. solutions manufacturers, system As a diverse team, Seagate extends integrators, storage services, advanced across more than 20 countries around hyperscale data centers, and the globe. Headquartered in Ireland, consumer. In addition to HDDs, we we have manufacturing sites in China, produce a broad range of data storage Malaysia, Northern Ireland, Singapore, products including solid state drives Thailand, and the U.S. In addition, (“SSD”), and storage subsystems. Our we have design centers in California, SSD products mainly include serial Colorado, Minnesota, and Singapore, attached SCSI (“SAS”) and Non-Volatile with dozens of sales and support Memory Express (“NVMe”) SSDs. offices throughout the world. We are a leading provider of data We are proud of the work we do to storage technology and solutions. uphold our core values, enable positive Because we are vertically integrated, change through profitable, strategic we maintain control over the design partnerships, and do what is right in and production of our own read- serving our stakeholders and the planet. write heads and recording media. In addition, we control sourcing, design,
ABOUT SEAGATE 03 GLOBAL CITIZENSHIP HIGHLIGHTS
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Embracing Diversity and Inclusion
Inclusion plays a major role in our Northern Ireland, and in China. Also success, and we are committed to in FY2018, the Seagate PRIDE! ERG maintaining an environment where all of was established. As a signatory of the our employees feel valued, welcomed, CEO Action for Diversity and InclusionTM and free to bring their authentic from PwC, in FY2018 Seagate provided selves to work every day. In FY2018, employees with access to resources Seagate supported site chapters of promoting unconscious bias education. the Seagate Women’s Leadership Network throughout the U.S., in
Stewards of Our Planet
As a company focused on data, it for the fifth consecutive year, we sent is impossible for us to ignore the no hazardous waste to landfills, and facts when it comes to the ways in reduced hazardous waste production in which human activity impacts our total by 17 percent. In the area of water environment, resources, and planet. conservation, we reduced our total water We recognize our responsibility to withdrawal by 10 percent and improved conduct business ethically, in a way our water recycling by 3 percent. Finally, that not only delivers sustainable we also reduced our total electricity value to our stakeholders, but aligns consumption by 4 percent. with our commitment to doing the right thing for our planet. In FY2018,
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Employee Health and Safety
With a global workforce of more campaigns at many of our sites. Our than 40,000 individuals, Seagate is Healthy Journeys program seeks to committed to ensuring the safety and educate, encourage, and support our health of our employees. Throughout employees as they work on achieving FY2018, we hosted nearly 36 health and their health and wellness goals. Because safety regulatory visits, and decreased our benefits programs are managed at our recordable case rate by .06, a 27 a country or site level, in line with local percent reduction from the previous legislation and employment policies, the fiscal year. In addition to our compliance Healthy Journeys program varies from regulations, we also conduct health location to location.
GLOBAL CITIZENSHIP HIGHLIGHTS 04 GOVERNANCE AND ETHICS
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GOVERNANCE AND ETHICS OVERVIEW
In line with our value of Integrity, Seagate is dedicated to maintaining the highest standards of ethics throughout our operations. As part of our ethics and compliance program, we have instituted a number of policies and processes, and delivered trainings and other communications that ensure all employees know how to perform to the highest standards.
Seagate is governed by its Board of supplemented by our Code of Ethics for Directors (“the Board”). Additional Senior Financial Officers, both of which information on our governance structure are available publicly on our website. is available publicly in the Governance section of our website. Our Corporate Our Business Conduct Policy helps to Governance Guidelines provide a ensure a principles-based approach to framework for Seagate’s Board of our activities. It summarizes Seagate’s Directors in exercising their responsibilities ethical standards and key policies across toward Company stakeholders, and such areas as insider trading, conflict of these guidelines entrust the Board interest, bribery and corruption, privacy with the authority to review Seagate’s and confidentiality, and antitrust and business operations and make decisions fair dealing. To promote awareness and independent of company management. understanding of the policy, we make The guidelines also provide a process for it available in the following languages: shareholders to communicate concerns English, Chinese, Korean, Malay, Thai, with the Board. French, Spanish, and Portuguese.
Our Business Conduct Policy serves As noted in the policy, we require all as Seagate’s guide for legal and ethical Seagate employees, business partners, conduct each day, in every place and suppliers to follow all applicable where we do business. It outlines national laws and regulations, including the standards we are all expected to the U.S. Foreign Corrupt Practices Act adhere to while exemplifying our values and the United Kingdom (UK) Bribery Act. and complying with applicable laws, regulations, and company policies. Through the RBA process, 100 percent Seagate’s Business Conduct Policy is of our manufacturing sites have a
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risk assessment every two years. In range of protective solutions that FY2018 there were no significant risks includes both software and hardware- of corruption identified through any based encryption. And along with risk assessment among our seven instant access and maximum storage manufacturing sites, which together performance also comes the realization comprise nearly 83% of our global that encrypting every bit of your footprint. business data is the only viable service We continually reevaluate our policies level. To this end, Seagate offers two to confirm they reflect and adhere to levels of hardware-based encryption— the latest standards, requirements, Essential and Certified—to help protect laws, and regulations at local, national, the entire life cycle of data security for and international levels. The Board business, government, and enterprise. reviews our ethics and compliance In addition, to help protect the data program, including our key policies and that our customers entrust to our hard processes related to ethical business drives, we have a feature called Instant conduct, on an annual basis to ensure Secure Erase (ISE), which is designed Seagate continues to operate within the to instantly reset the drive to factory letter and spirit of the law. settings and change the encryption key Seagate is committed to protecting the so any data remaining on the drive is personal information of our employees cryptographically erased. This means and customers. As we continue to comply all data on the drive is permanently and with the requirements of the European instantly unreadable. This work extends Union (EU) General Data Protection the life of the drive by enabling it to be Regulation (GDPR), we are also working reused. In this way ISE also serves as toward compliance with other emerging a product sustainability feature since data protection and privacy laws, such the drives can be repurposed, which as the California Consumer Privacy Act extends the useful life of the drive. of 2018 (CCPA) and Brazil’s new Data Privacy Law (Lei Geral de Proteção de Dados Pessoais or “LGPDP”).
In today’s business environment, data creates value. Data is clearly a vital business asset that needs to be protected, which is why security analysts recommend a complete
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Our global privacy program has necessary; and not keeping the data adopted the principles from the GDPR longer than is necessary to fulfill its and the Fair Information Practice purpose. These principles are widely Principles (FIPPs), which include accepted concepts for fair information the following: accountability; acting practice and data protection, and we within the law; informing individuals are committed to implementing these of how their data will be used; only principles throughout Seagate as a using data for a specific purpose; comprehensive and holistic approach collecting only the minimum data to data privacy.
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Ethics Helpline and Reporting
Our Ethics Helpline is available to both Additional reporting channels are our employees and to those external to available for employees to address the Company, with contact information ethics and other concerns, and available on the homepages of both our ongoing training encourages worker internal and external Seagate websites. feedback and participation in local sites, Concerns may be reported by phone management communications sessions, or webmail in English, Spanish, French, and employee “all-hands” meetings Chinese, Korean, Malay, Portuguese, or with executives. These are just a few Thai. Throughout FY2018, we continued examples of how Seagate encourages to promote our Ethics Helpline so that worker consultation and supports employees may confidentially and the ability of employees to address anonymously report illegal or unethical complaints without the fear of retaliation. situations without any fear of retaliation.
Public Policy Advocacy
Seagate is a diverse global company policies the company believes facilitate with operations, employees, customers, productive economic growth and are suppliers, and shareholders located in the best interests of Seagate and its throughout the world. As such, Seagate stakeholders. engages and interacts with officials and Seagate’s effort to interact with government representatives in a number industry peers and stay informed of of countries and municipalities, providing evolving policies, trends, technology information about our company, our developments, and regulations industry, markets, technology, and includes participation in a number other facets of our business. Seagate of trade associations and related does not contribute corporate funds to organizations. Some of these candidates for political office, political associations are categorized as 501(c) parties, or political action committees. organizations under the U.S. tax As a responsible corporate citizen, code, and some may engage in public Seagate may actively engage in policy advocacy with the U.S. or other legislative and regulatory processes. government entities. Seagate may This may include advocacy for certain make payments to these organizations,
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including membership fees and dues, these trade associations does not however the company’s payments to, mean Seagate endorses or agrees with participation in, or membership with all of a group’s policy objectives.
Below is a list of trade associations that may have received membership fees or payments from Seagate during FY2018.
• Responsible Business Alliance (RBA) • American Chamber of Commerce, • US-ASEAN Business Council Malaysia • United Nations Global Compact • American Chamber of Commerce, Singapore • United for Patent Reform • American Chamber of Commerce, • Green Chemistry Council China • American Chamber of Commerce • Mastel (Indonesian association for ICT • Silicon Valley Leadership Group companies) • TechNet • Singapore Business Federation • The Minnesota High Tech Association • China Information Industry Association • Longmont, CO, Area Economic Council • China Association for Foreign Invested • Longmont, CO, Chamber of Commerce Enterprises • Boulder, CO, Chamber of Commerce • US-China Business Council in Beijing/ Shanghai • Cupertino, CA, Chamber of Commerce • Jiangsu Provincial Informatization • Fremont, CA, Chamber of Commerce Association • American Chamber of Commerce, Thailand
Looking Forward: Governance and Ethics Seagate will continue to evaluate and assess our Business Conduct Policy, related programs, and processes for relevance and compliance with new laws and regulations. We plan to continue development and implementation of impactful live and online employee trainings and communications to support a culture of ethical behavior and compliance.
GOVERNANCE AND ETHICS 05 PRODUCT SUSTAINABILITY
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PRODUCT SUSTAINABILITY OVERVIEW
At Seagate, we understand the importance of reducing the impact our products and packaging have on the environment as identified by our rigorous Life Cycle Assessments (LCA). That is why our Product Sustainability team works closely with a number of internal and external partners, including suppliers, to assess and reduce impacts.
Identifying key environmental impacts In the spirit of continuous improvement, and reduction opportunities, our LCAs we aspire to first understand the include product environmental impacts, impacts of our product offerings restricted substances, product end of life, and then work toward reducing or and responsible sourcing of minerals. The eliminating those impacts across Precautionary Principle is not applicable our operations. We recognize the to Seagate’s products and services importance of this work and share our because we do not utilize controversial results with our customers as inputs technologies, such as genetically to their own processes, which in turn modified organisms or systemic assist them to better understand their insecticides in our products or processes. own business impacts.
Seagate takes a holistic view of product In FY2018, Seagate’s Product impacts, taking into account the Compliance Council continued to environment, our customers, suppliers, operate according to its charter, and communities where our products supporting aspects of our product and operations reside. Maximizing sustainability. Seagate products are sustainability remains an ongoing goal designed to meet all Health and Safety of our Product Sustainability program, regulations in the geographies where reflecting the implied social contract that products are marketed. we acknowledge and are proud to uphold.
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Product Impacts
Seagate uses thousands of materials on FootprinterTM models, and published to make its products, including many five more HDD LCAs using this tool. chemical substances. We strive for a These assessments are available on our complete understanding of material website. All other LCAs are still relevant. content in order to best manage product environmental impacts by In accordance with our credibility and working with suppliers to obtain Full transparency efforts, the Seagate Material Disclosures (FMD) for every Green Design models have achieved part included in one of our products. a limited assurance verification by UL This information is maintained in a Environment based on criteria as detailed database that is rigorously managed by in the International Standards for LCA Seagate’s Sustainability organization, (ISO 14040 and ISO 14044), and the and is accessible to relevant internal World Resources Institute (WRI) and stakeholders as any new substance World Business Council for Sustainable concerns emerge. Development (WBCSD) Greenhouse Gas (GHG) Protocol Product Life Cycle Seagate conducts LCAs in accordance Accounting and Reporting Standard. with the International Organization for LCAs and product impact assessments Standardization (ISO) 14040:2006 and help us focus development efforts to 14044:2006 to estimate each assessed reduce environmental impacts. We product’s impact on the environment. In prioritize conducting product LCAs addition, each LCA is critically reviewed based on production volume and by an independent third party. customer data requirements. Seagate’s In FY2018, we continued with the use of initial LCA approach includes 15 the Seagate Green Design Tool based environmental endpoints.
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Each LCA addresses impacts at every stage in the product life cycle, from raw material extraction to end-of-life disposal and recycling. The Seagate Green Design Tool LCAs include four endpoints judged for particular relevance to the electronics industry:
1. Climate Change (kg CO2e)— 3. Metal Depletion (kg Fe eq)— Assessed across the seven GHGs Indicates the amount of mineral specified in the GHG Protocol deposits consumed Product Standard 4. Water Depletion (kg cubic 2. Human Toxicity (kg 1.4-DCB meters)—Reflects the amount of eq)—Accounts for environmental water withdrawn in cubic meters persistence, accumulation in the from local freshwater systems human food chain, and human toxicological effects
We assess all of our products for and safety of our products to meet health and safety and improvements regulatory standards to place products in related to health and safety through our markets to meet legal requirements. a representative drive for each family The progress that we have made is of products, as well as for the overall published on our external website. product portfolio. We also assess health
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CASE STUDY: EXOS X10 SERIES Our 10TB Exos® X10 (formerly engineering focus is on increasing Enterprise Capacity 3.5 HDD) Helium storage capacity utilization, while drive was designed using results controlling the quantity and types from previous sustainability reports to of materials we use, and improving improve upon previous designs. Our energy efficiency and recyclability.
This HDD has several sustainable design features: • 10TB per drive for 25 percent • PowerBalanceTM feature optimizes more Petabyte per rack1 IOPS/Watt • Industry’s lowest power and • 550TB/year workload rate limit weight for optimum data center • Proven enterprise-class reliability Total Cost of Ownership (TCO) backed by 2.5M-hour mean time between failures As a part of our sustainability assessment, metal depletion by life stage, water we measure and report its energy and depletion by life stage, device weight greenhouse gas emissions, impact on when shipped by unit and TB, and key safety, impact on scarce resources, circularity parameters. The chart below and materials efficiency and circularity. demonstrates how the use phase of our This is shown by displaying power drives has the biggest impact on overall consumption, greenhouse gas emissions greenhouse gas emissions. by life stage, human toxicity by life stage, Greenhouse Gas Emissions by Life Stage
PACKAGING END OF LIFE DISTRIBUTION Use Phase...... 86.00% MANUFACTORING ENERGY Bill of Materials...... 8.00% BILL OF Manufacturing Energy....5.00% MATERIALS Distribution...... 1.00% USE PHASE End of Life...... 0.60% Packaging...... 0.01%
More details on the sustainability of this product and 1Compared to 8TB competitive product. others can be found on our external website.
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Materials Efficiency and Circularity
With the Seagate Green Design tool, combines these measures of circularity we are introducing a circularity metric into a single indicator. on each product LCA. Circularity is A perfect score is one, or 100 percent a measure of materials efficiency. restorative, while a score of zero Material use has traditionally been linear: indicates a product with average virgin materials are taken from nature, lifespan and functionality, no recycled or used to make and use products, and reused content, and with no prospect ultimately proceed to disposal. A circular of being recycled or reused at end of economy, however, promotes the life. LCAs are publicly available on the continuous use of materials in order to Global Citizenship page of our website reduce waste and minimize our reliance for each product on which Seagate on finite virgin resources. has completed ISO 14040/14044 LCA Seagate now measures the circularity of studies. products using the Material Circularity In FY2018, we published seven LCAs Indicator (MCI) for those products using the new format called the Product assessed via the Seagate Green Sustainability Report. We continue to Design Tool. We do this to benchmark refine the tool as we use it in conducting our products, identify opportunities our LCAs. In accordance with our for improvement, and to move toward commitment to credibility, this process greater material efficiency. We also maintains third-party assurance. do this to inform our storage solutions Significant environmental impacts designs and add value to the way we come from the use phase of Seagate serve our customers and partners. products. This means one of the The MCI focuses on the restoration of largest opportunities to reduce product material flows at product and company impacts comes from customers’ levels, and is based on the following understanding and use of Seagate’s four principles: using feedstocks from product power conservation modes, reused or recycled sources, reusing which allow customers to reduce the components or recycling materials costs associated with drive operation after each use of the product, keeping while also reducing environmental products in use longer (e.g., by reuse impacts. The advantage of these power or remanufacture), and making more conservation modes are described in intensive use of products (e.g. via the product manuals. service or performance models). MCI
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Seagate does not stipulate post- electronic waste recycling programs. For consumer content when procuring this reason, our HDDs are prime targets components or parts from suppliers; for salvage and recycling. however, it must be acknowledged that Because the vast majority of Seagate’s there is post-consumer material inherent products are sold as components to in today’s raw material supply. Utilizing larger systems produced by original data from our LCAs, we are able to equipment manufacturers (OEM) or determine the impact of metal depletion per terabyte (TB) of storage capacity resellers, we have minimal leverage shipped on average for our product over how our products are managed at portfolio. The metal depletion indicator the end of their useful life. Just as we specifies the amount of mineral deposits recycle our own internally generated that are consumed to provide the end- scrap, we provide information to use material in question. The process is our customers to enable their own normalized to the extraction of iron (kg reclamation efforts and to promote Fe-Eq). The average metal depletion per participation in manufacturer take-back TB across Seagate’s product portfolio programs. Seagate does not have a is 7.9 kg Fe-Eq, and the total CY2017 product take-back program since the impact to metal depletion equates vast majority of our products are sold as to 2.2 million tons of Fe-Eq. In order components to larger systems. to be more accurate, in line with our For our retail products and servers, methodology, we are reporting in a CY- Seagate helps to manage product based time frame for metal depletion. waste by taking back warranty-returned Seagate takes the entire product life drives. All of these drives are refurbished cycle into account when designing our or recycled. Drives that are recycled products. Most Seagate products are are done so at locations that have highly recyclable, containing aluminum, been third-party audited to ensure our steel, copper, and other recoverable environmental standards are met. We also materials, and many regions where provide customers with drive disassembly Seagate products are sold have instructions to facilitate recycling.
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Looking Forward: Product Sustainability In line with our commitment to product sustainability, we will continue to leverage our LCAs to drive transparency and accountability, and will continue to publish additional LCAs throughout FY2019. Seagate understands the value and importance of responsible resource management, and will continue to investigate and pursue strategic circularity opportunities involving rare earth metals throughout FY2019 and beyond.
As part of our efforts to maximize the value of our products and minimize waste at the end of a product’s life, we will continue to evaluate options for sourcing material from recycled products throughout FY2019. Viable recovered materials would then be used in the manufacturing of new components, reducing waste and supporting our circularity initiative.
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Restricted Substances
As a supplier to major OEMs, Seagate Restriction of Hazardous Substances must meet our customers’ strictest (RoHS) “Recast” Directive, as amended specifications. We are meticulous about by Directive (EU) 2015/863. We monitor cataloging restricted substances, and regulatory, industry, and customer currently list more than 2000. Seagate requirements, and continuously add maintains a database to evaluate new chemicals and substances to our ongoing legal, industry, and customer restricted list, eliminating them from requirements for product environmental Seagate products wherever possible. compliance, and catalogs the Chemical Seagate’s FMDs and CAS2 allow us Abstract Service (CAS) number for every to evaluate all of our products against chemical substance present in Seagate the most current REACH Candidate components and finished products. List upon publication. We are able to determine if and where Substances of Throughout FY2018, we continued to populate our CAS2 system with supplier Very High Concern are present in our FMD and Conflict Minerals data— products, and at what concentrations, including over 15,000 active Seagate both at the homogeneous material and parts and 30,000 supplier components. article levels. This allows us to respond Seagate also completed the migration of to changing regulatory interpretations, all supplier data from the CAS1 system such as the European Union Court of into the CAS2 system, which enables Justice decision of September 2015 us to access and demonstrate product regarding the definition of an “article” to compliance data from the past ten ensure compliance with REACH Article years. Using this data, we responded 33 requirements. to over 3000 customer requests for To help customers comply with these product environmental compliance same requirements at the finished information in FY2018. product level, we aim to exceed, rather Seagate strives to comply with all than meet, the requirements, giving our regulatory requirements where we and customers enough time to manage their our customers do business. Seagate own product compliance. This diligence adheres to global restricted substance gives our customers the opportunity legislation, including the European to participate in programs such as Regulation regarding the Registration, the Electronic Product Environmental Evaluation, Authorization and Restriction Assessment Tool (EPEAT). Seagate of Chemicals (REACH), and the products are generally components,
PRODUCT SUSTAINABILITY 030 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
for which no EPEAT standards apply. Footprint Project website. Seagate However, our ability to verify RoHS regularly participates in industry-wide compliance and identify product reviews and discussions to help lead the composition at both the homogeneous development of industry standards and material and article levels provides tools that help our industry and supply customers the assurance that the chains meet regulatory and customer incorporation of Seagate components requirements. into their final products will support As part of our commitment to their ability to meet the relevant EPEAT- transparency, Seagate publishes a Bill of required and optional criteria for their Substances report, which lists all of the final products. materials used as a percentage of the In FY2018, we continued our support of total. Total materials used by weight is the BizNGO Safer Chemicals principles, not a metric recognized by Seagate. In and participated in the Chemical FY2018, we received no significant fines Footprint survey. Results of our survey or nonmonetary sanctions for product are available publicly on the Chemical environmental noncompliance.
Looking Forward: Restricted Substances Upholding our value of Integrity, we will continue to manage our product compliance to ensure that all customer and regulatory requirements are fully met throughout FY2019 and beyond. While in the process of migrating to a new service provider for our Business Process Outsourcing activities, we will work to identify and leverage process efficiencies.
PRODUCT SUSTAINABILITY 031 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Conflict Minerals
Conflict minerals are tungsten, tin, As part of compliance with this tantalum and gold (3TG or “conflict regulation, Seagate participates in the minerals”), which remain a major challenge RBA Responsible Minerals Initiative for hardware industries. Extensive (RMI). Participation allows Seagate to reserves of these minerals are located in contribute to industry solutions while the Democratic Republic of the Congo maintaining standard processes for data (DRC) and adjoining countries. Some of collection. Our Conflict Minerals Policy these minerals are illegally sourced and Statement is available on our website. traded by armed groups responsible for Although 75 percent of the world’s tragic human rights violations. Addressing known 3TG smelters and refiners have conflict minerals became an even higher been validated as conflict-free, there priority in 2012, when the Dodd-Frank Act, are not enough conflict-free validated Section 1502, was adopted in the U.S. sources to meet demand. We continue The law requires companies to disclose to seek supplier commitments to source whether 3TG used in their products only conflict-free 3TG, to have their originated in the DRC or an adjoining smelters and refiners engage in the country. If so, companies must describe validation audit process, or convert to what efforts they have undertaken to other preferred sources if smelters and ensure the sources of the 3TG metals are refiners decline to become conflict-free. identified and documented for purposes of reporting to the U.S. Securities and Seagate’s hardware products contain Exchange Commission (SEC). all four conflict minerals, which are
PRODUCT SUSTAINABILITY 032 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
required for the products’ functionality and Development (OECD) guidance. and production. Seagate does not Though we did not conduct an IPSA in directly procure pure metals from FY2018, we maintained our commitment smelters or refiners; we purchase to the OECD due diligence framework. parts, components, materials, and Throughout FY2018, we continued subassemblies containing these metals. Therefore, we rely on our to manage supplier communication direct suppliers to provide information and data via CAS2, following our about the origin of the 3TG contained implementation of the system in FY2017. in components and materials supplied As of FY2018 year end, all of our HDD to us. The information about 3TG products were verified conflict-free contained in our products comes from as defined here, and we continue to lower-tier suppliers and information make significant progress integrating provided through our membership in the our systems products into CAS2 and RBA and RMI. moving toward complete conflict-free In FY2017, we conducted and passed validation among those products. an Internal Private Sector Audit (IPSA) "Conflict free" is defined as having 99.5 aimed at validating that our due percent of suppliers and associated diligence framework conformed to the smelters complete the RMI protocol or Organization for Economic Cooperation equivalent certification.
Looking Forward: Conflict Minerals Seagate will remain committed and vigilant against human rights violations throughout our supply chain and associated smelters. As we plan to conduct an IPSA in FY2019, we continue toward our vision of conflict-free certification across our entire product portfolio.
Additional information and details are available in our Conflict Minerals Report, filed annually with the U.S. SEC.
PRODUCT SUSTAINABILITY 06 ENVIRONMENTAL SUSTAINABILITY
BACK TO CONTENTS 034 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
ENVIRONMENTAL SUSTAINABILITY OVERVIEW
Seagate understands and we operate and do business, as acknowledges that climate change evidenced throughout our corporate is contributed to by human activity, policies and processes. To the best of and will lead to a number of social, our knowledge, none of our operations economic, and environmental are located in or adjacent to protected consequences for all of us if not areas and areas of high biodiversity properly dealt with. As we work value outside protected areas. We on doing our part, we continue to are also not involved in any habitat set goals, track our progress, and protection and restoration efforts. audit our systems to reduce energy consumption, carbon emissions, We work closely with our suppliers and waste, and water usage throughout provide training to key stakeholders to our global footprint. These efforts are educate them on sustainability best both important to and fully supported practices, with indicators to gauge by senior management. In addition, performance. These actions comprise our global environmental sustainability the majority of our environmental efforts are deeply embedded in how sustainability efforts.
Management Systems Our environmental management system ISO 14001 Environmental Management is shaped by ISO standards, the RBA System and Occupational Health Code of Conduct, and UNGC principles. and Safety Assessment Series By managing and reducing environmental (OHSAS) 18001-certified. We had impacts through this system, Seagate 20 environmental regulatory visits demonstrates our recognized in FY2018, resulting in no notices of environmental sustainability leadership violation or fines. In addition, we had 36 in the Information and Communication Health and Safety and Fire regulatory Technology (ICT) industry. visits globally. There were no fines levied At the end of FY2018, all of Seagate’s or notices of violations raised as a result manufacturing facilities were certified to of these visits in FY2018.
ENVIRONMENTAL SUSTAINABILITY 035 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Energy and Carbon Emissions Performance
Energy usage and process chemicals The reduction of GHG emissions that contribute to greenhouse gas continues to be the most significant (GHG) emissions are essential to the environmental aspect to our operations, manufacturing processes of our products especially given the growth in storage and to providing our services. Seagate capacities and product complexity, reduces the amount of energy and carbon as new products have additional required to produce HDDs by identifying production steps. Furthermore, as the energy conservation opportunities, ICT industry transitions to increased auditing management systems, setting cloud-based data storage systems, targets, creating awareness among Seagate will grow its cloud storage employees, and reporting on progress product offerings, which generally throughout our operations. require longer test times.
Our primary objective is to reduce We are working to better understand energy use and GHG emissions per and mitigate the impact this transition storage capacity produced. Across may have on our energy and carbon our industry, these measurements are emissions performance. Finding a known as “energy intensity” and “GHG replacement for the hydrofluorocarbon emissions intensity” because they solvent used in our manufacturing measure impact relative to the amount processes, which is released as a of economic activity taking place. fugitive emission, will be key in reducing Intensity is measured in various ways overall GHG emissions, as this is the across industry sectors and product main contributor to Scope 1 emissions. types; Seagate measures energy and Throughout FY2018, we worked toward carbon emissions intensity per exabyte finalizing our emissions reduction goal (EB) of storage capacity shipped. for the Science Based Targets Initiative Seagate’s two largest sources of GHG (SBTI), which we committed to publicly in emissions continue to be purchased FY2017. SBTI is a methodology designed electricity and fugitive emissions (the to set GHG reduction targets that align unintended release of GHG compounds with climate science, to mitigate the into the atmosphere from various types rise in global temperatures to less than of equipment and processes). To reduce two degrees Celsius compared to pre- the intensity of GHG emissions, each industrial temperatures. manufacturing site is required to achieve annual energy savings goals.
ENVIRONMENTAL SUSTAINABILITY 036 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Energy
Total internal electricity consumption Seagate also continues to focus efforts decreased to 1.567 million megawatt on energy conservation throughout hours (MWh), from 1.633 million MWh in our operations. In FY2018, we saved FY2017. We shipped 338 EB of storage 39,000 MWh of electricity, exceeding capacity in FY2018, resulting in a total of our conservation goal of 20,000 MWh 4634 MWh per EB of storage capacity by nearly double. Energy savings are shipped, down from 6220 MWh per EB calculated using the Metered Baseline of storage capacity shipped in FY2017. Method (MBM); since FY2014, the site- This accounts for a 25 percent reduction initiated energy conservation projects in electricity consumption from FY2017 have saved a cumulative 154,000 MWh. to FY2018, reflective of our ongoing Our conservation goal for FY2019 is commitment to responsible energy use. 10,000 MWh.
Higher-capacity drives tend to require At our design centers in Singapore and an increased amount of energy to Fremont, California, we generated a total manufacture, and normalizing our of 1540 MWh of renewable, solar energy energy consumption per storage throughout FY2018. Our manufacturing capacity shipped demonstrates sites in Wuxi, China, and Londonderry, our continued progress toward and Northern Ireland, are certified to ISO commitment to energy efficiency— 50001 Energy Management System. aligned to our value of Innovation.
Accumulated Energy Saved (MWh) since FY14
180
1 0
1 0
120 Accumulated 100 since FY14 80 Energy Saved
0 in current FY T M
0
20
0 FY1 FY1 FY1 FY1 FY18 FY1 P
ENVIRONMENTAL SUSTAINABILITY 037 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Grid Electricity Consumption Over 5 Years
1 10 000
1 8 000 1 2
000 1 0 MWh
1 8 M EB
M M 000 MWh/EB
1 2 000 1
1 2 0 FY1 FY1 FY1 FY1 FY18
Grid Electricity Consumption
1 0
1 8
1
1
1 2
1 0 M M
1 8
1
1 CY1 CY1 CY1
Energy Consumption Excluding Electricity (MWh) in CY2017
STEAM CONSUMPTION HEATING CONSUMPTION Fuel Consumption: COOLING 67,6 47 ...... 98% CONSUMPTION Heating Consumption: 761...... 1% Cooling Consumption: FUEL 695...... 1% CONSUMPTION Steam Consumption: 0...... 0%
ENVIRONMENTAL SUSTAINABILITY 038 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Fuel Type (MWh) in 2017
MOTOR GASOLINE JET KEROSENE DISTILLATE FUEL OIL Natural Gas: 59,515...... 88% PROPANE Propane: 3,971...... 6% Distillate Fuel Oil: 2,463..... 4% Jet Kerosene: 1,695...... 2% NATURAL GAS Motor Gasoline: 3...... 0%
Solar Energy Generated on Site
1 800
1 00
1 00
1 200 Shugart Design 1 000 Center
800 Fremont M Design Center 00
00
200
0 FY1 FY18 FY1 P
ENVIRONMENTAL SUSTAINABILITY 039 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Carbon Emissions
Our carbon emissions data is collected our manufacturing site in Singapore on by Calendar Year (CY). In CY2017, our qualifying a replacement for this solvent Scope 1 emissions (GHG emissions and improving process efficiency. generated directly at our sites) reduced This hydrofluorocarbon solvent by 12 percent to 262,343 metric tons contributed to nearly a quarter of our
of CO2e. The majority of this decrease Scope 1 and Location-Based Scope 2 occurred as a result of our program to emissions totals, and finding a suitable reduce fugitive-hydrofluorocarbon and replacement has proven to be more other process improvements. challenging than initially envisioned.
We are still challenged by our use of Our Scope 2 emissions, which come a hydrofluorocarbon solvent in our from the indirect GHG emissions media manufacturing process, which generated from the electricity that we results in fugitive emissions, and purchase, decreased by 10 percent,
are committed to finding a suitable from 991,279 metric tons of CO2e replacement. This hydrofluorocarbon in CY2016 to 894,885 metric tons
solvent is a necessary part of our of CO2e in CY2017. The primary manufacturing processes, and has a approach to reduction is through energy very high global warming potential. The conservation; we used the WRI/WBCSD media design and manufacturing teams Greenhouse Gas Protocol (Scope 1 at our facility in Fremont, California, and 2) for Scopes 1 and 2 calculations, are working closely with the teams at and the WRI/WBCSD Greenhouse Gas
ENVIRONMENTAL SUSTAINABILITY 040 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Protocol Corporate Value Chain (Scope are available publicly on the CDP 3) for our Scope 3 calculations. website, and we share information with our customers through the RBA Combining our Scope 1 and Scope environmental module. 2 emissions, we generated 1,157,228
metric tons of CO2e in CY2017, • CDP Response for Carbon Emissions representing a 10 percent reduction and Third-Party Verification. from CY2016. We also conduct third- Seagate continues to assess risk to the party verification of our GHG emissions business from climate change as part reporting every year, per ISO 14064-3: of our annual ISO 14001 management Greenhouse gases—Part 3: Specification system process, and we have not with guidance for the validation and identified any risk unique to our company verification of greenhouse gas assertions. beyond what would apply to our industry. Our CY2017 goal was to reduce our As is typical for technology products, total combined Scope 1 and Scope 2 we find that Scope 3 emissions, emissions by two percent from CY2016, particularly those from product use, which was achieved. We believe that are much greater than Scope 1 and measuring emissions normalized over EBs Scope 2 emissions, highlighting the shipped is a more accurate representation importance of Seagate’s continued of the emissions portfolio of our business. efforts to reduce the amount of energy In addition to tracking factory used by our products. One way that we performance to inform stakeholders achieve improvements in all aspects of (annually via this report), we share our products, including sustainability our results through the CDP (Carbon impacts like energy usage, is to learn Disclosure Project) investor and supply from current products and continuously chain questionnaires. Our responses improve upon each new generation. Our LCA results help to inform these improvements in products and packaging. As a result, each generation Our helium drives of products is more energy efficient (EB/ capture energy savings watt) compared to previous generations. opportunities from sustainability report Seagate reports on all twelve Scope findings of previous 3 parameters that are relevant to our product lines. operations; FY2017 represents the first year that we have a completed Scopes 1, 2, and 3 GHG footprint reported.
ENVIRONMENTAL SUSTAINABILITY 041 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
GHG Emissions Over 5 Years
1 00 000
1 200 000
1 000 000
997,656 999,652 800 000 979,312 991,279 894,885
CO2 00 000
00 000
200 000 317,757 302,387 281,109 298,743 262,343
0 CY1 CY1 CY1 CY1 CY1
Scope 1 Scope 2
GHG Emission Intensity Over 5 Years
1 00 000 8 000
1 200 000 000
000 1 000 000 000 800 000 Scope 2 Scope 2
C02 Scope 2 000 Scope 2 00 000 C 2 EB Scope 2 000 00 000 2 000
200 000 Scope 1 Scope 1 Scope 1 Scope 1 Scope 1 1 000 0 0 CY1 CY1 CY1 CY1 CY1
Scope 1 Scope 2 tCO2e/EB
ENVIRONMENTAL SUSTAINABILITY 042 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
GHG Emissions in 2017
SCOPE 1
SCOPE 2
Scope 3: 13,882,600...... 92% Scope 2: 894,885...... 6% Scope 1: 262,343...... 2% SCOPE 3
Scope 1 Emissions in 2017
OTHER N2O CH4 PFCS SF6 NF3 HYDROCARBONS
CO2
HFCS
HFCs...... 87% PFCs...... 1%
CO2...... 6% CH4...... 0% Hydrocarbons...... 3% N2O...... 0% NF3...... 2% Other...... 0% SF6...... 1%
ENVIRONMENTAL SUSTAINABILITY 043 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
T S 1 2 E 1 0 CO2
PROCUREMENT TRANSPORTATION PRODUCTION TRANSPORTATION DISPOSAL
S U S 2 8 S 2 11 118 Purchased Electricity = Purchased 894 Use of Sold Goods & Products = Servies = 11,000 2,200 Purchased Heating /Cooling = 1
Upstream Transportation End of Life Treatment for & Distribution = 190 Sold Products = 100
Fuel & Energy Related S 1 2 2 Downstream Transportation Activities = 190 & Distribution = 16 Capital Goods = 130 Process/ Fugitive = Processing of Sold Employee Commuting = 29 250 Products = 2 Business Travel = 17 Waste Generated = 5 Stationary Combustion = 12 Upstream Leased Assets = 3 Mobile Combustion = 0.4
201 S E
11 MILLION U S P P G S CO2 F E R A
79% of Scope 3 CO2e from U T the Use of Sold Products 13.88 C G E C
2.2 MILLION M M P S P T S CO2 B T CO2 16% of Scope 3 CO2e from G Purchased Goods & Services U L A T Balance 5% from other Scope 3 CO2e E L T S P
ENVIRONMENTALAll units SUSTAINABILITY in million metric tons CO2e 044 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
GHG Scope 1 & 2 by Type of Facilities in CY2017
EMEA AMERICAS
Asia...... 80% Americas...... 17% EMEA...... 3% ASIA
GHG Scope 1 & 2 by Type of Facilities
1 0 000
1 00 000
1 2 0 000 Manufacturing 1 200 000
C02 R&D 1 1 0 000 Offices 1 100 000
1 0 0 000
1 000 000 CY1 CY1 CY1 CY1 CY1
GHG Scope 1 & 2 by Region in CY2017
EMEA AMERICAS
Asia...... 85% Americas...... 12% EMEA...... 3% ASIA
ENVIRONMENTAL SUSTAINABILITY 045 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
GHG Scope 1 & 2 by Region
1 00 000
1 200 000
1 100 000
1 000 000 C02 00 000
800 000
00 000
00 000 CY1 CY1 CY1 CY1 CY1
Asia Americas EMEA
Looking Forward: Energy and Carbon Emissions As we continue to focus on energy conservation throughout FY2019 and beyond, we continuously evaluate our processes to identify savings opportunities throughout our global footprint. We anticipate our total energy consumption will be reduced in FY2019 as we continue to focus on reducing our footprint. In addition, we will continue to work toward achieving our aggressive SBTI goal.
ENVIRONMENTAL SUSTAINABILITY 046 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Waste Management
Seagate has established systems Each Seagate site is responsible for to track, manage, and report waste reporting data on waste to a central at every Seagate site across our database that is only accessible by global footprint. Our sites identify and Seagate employees. It is reviewed implement waste minimization initiatives by Seagate Corporate Sustainability. with the goal of preventing waste from Seagate has established minimum being produced, and recycling or requirements for the selection and reusing waste whenever possible. performance of hazardous waste treatment vendors, and qualifies vendors In addition, we commit to zero landfill through a third-party audit of set criteria. disposal of hazardous waste unless technically not feasible. We work with We had no significant spills in FY2018. A the disposal facility to identify the most significant spill is defined as one which appropriate method for treatment and is reported in the financials as a liability disposal. Our preference is to recycle requiring an outside response by a party the waste, but if that is not an option, external to Seagate. we look at chemical, physical treatment, and finally incineration.
Solid Waste
We measure the performance of FY2018, Seagate met its target of our program by tracking the metrics keeping more than 83 percent of solid listed in the graph that follows, taking (nonhazardous) waste out of landfills, into account recycling and energy with a diversion rate of 85 percent. recovery. Our annual totals include We generated more waste overall in all waste generated at facilities under FY2018: 20,730 tons, up from 19,513 the company’s ownership and control, tons in FY2017, representing a 6 not including waste generated as part percent increase. of new construction projects. During
ENVIRONMENTAL SUSTAINABILITY 047 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Solid Waste Disposition FY18 Total 20,730 Tons
COMPOST ENERGY RECOVERY INCINERATED REUSED Recycled: 17,666...... 82% LANDFILL Landfill: 2,235...... 10% Reused: 802...... 4% Incinerated: 720...... 3% RECYCLED Energy Recovery: 110...... 1% Composted: 93...... 0%
Total Waste Generated Over 5 Years
000 200
0 000 180
1 0 000 1 0 0 000 120 2 000
T 100 20 000 80
1 000 T E 0 10 000 0
000 20
0 0 FY1 FY1 FY1 FY1 FY18
Haz Waste Non Haz Solid Waste Total waste per EB
ENVIRONMENTAL SUSTAINABILITY 048 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Hazardous Waste
Eighty-three percent of the hazardous facility. Electrowinning recovers metallic waste produced in FY2018 was nickel from waste plating solution. recycled, with 2.6 percent going to The waste was previously shipped to energy recovery, 6.4 percent being a vendor for treatment, and is now incinerated, and 7.7 percent being classified as recycled. disposed of through treatment Additionally, Seagate generated 17 processes. Because of these efforts, in percent less total hazardous waste in line with our commitment to responsible FY2018, dropping from 10,211 tons waste management, FY2018 represents in FY2017 to 8,457 tons. This also the fifth consecutive year that we sent correlates with a drop in hazardous no hazardous waste to landfills. waste produced per million EBs Our hazardous waste disposition shipped, from 39 tons in FY2017 to continues to shift away from 25 tons in FY2018. This is again due treatment to recycling due to the new to treating a large amount of waste electrowinning process introduced in-house through the electrowinning at our Johor, Malaysia manufacturing process in Johor, Malaysia.
ENVIRONMENTAL SUSTAINABILITY 049 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
We utilize CHWMEG third-party audit by Seagate Corporate Sustainability. A reports to assess Treatment, Storage, total of 8457 tons of hazardous waste and Disposal Facilities (TSDF) across was transported to in-country TSDFs global sites. When CHWMEG audit for treatment in FY2018. No waste reports are not available, we directly was imported nor exported during the contract with third-party firms to year. The volume of waste transported conduct audits of TSDFs. In FY2018, we is calculated from hazardous waste conducted or reviewed 13 Hazardous consignment notes that accompany the Waste TSDF audit reports to ensure shipment for treatment. these facilities meet the standards set
Hazardous Waste Disposition FY18 Total 8,457 Tons
ENERGY RECOVERY
INCINERATED
TREATMENT Recycled: 7,050...... 83% Treatment: 649...... 8% Incinerated: 542...... 6% Energy Recovery: 216...... 3% RECYCLED Landfill: .0 ...... 0%
Looking Forward: Waste Management Underpinned by our value of Integrity, we are committed to keeping 100 percent of hazardous waste out of landfills throughout FY2019. Additionally, we will maintain a solid waste diversion rate of 83 percent or greater in FY2019, leveraging site initiatives, as well as the insights of our dedicated teams, to help achieve these goals.
ENVIRONMENTAL SUSTAINABILITY 050 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Water Management
Water is a key natural resource, and water withdrawn from municipal water warrants proper management to supplies based on meter reading. In preserve and protect the health of CY2017 we recycled 2291 megaliters our ecosystem. Our manufacturing of water, up from 1873 megaliters in processes draw water from local CY2016, a 22 percent increase based watersheds for use as coolants and on meter reading. Our progress has cleaning agents. We have applied been driven by reducing water use measures to reduce water consumption, through more efficient processes, and improve water recycling, increase recycling the water we use. In CY2017, awareness among employees, and our water intensity was 31.7 liters per reduce water intensity over the EB, down from 40.1 liters per EB in past several years. Like our carbon CY2016, a 21 percent decrease. This is emissions, total annual water metrics due to an overall reduction in withdrawal are reported based on the calendar as well as the increased number of EBs year, not fiscal year. shipped from CY2016 from CY2017. The CDP Response for Water and Third- We reduced total water withdrawn by Party Verification can be found on our 11 percent, from 10,119 megaliters external Global Citizenship website. in CY2016 to 9047 megaliters in CY2017. This is the total volume of
Water Withdrawals & Recycling
1 000 0
12 000 0
10 000 0
8 000 0
M 000 0
000 20 ML EB
2 000 10
0 0 CY1 CY1 CY1 CY1 CY1
Water Withdrawals Water Recycling ML Withdrawals/EB
ENVIRONMENTAL SUSTAINABILITY 051 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Water Withdrawal by Source, Total 9,047 Megaliters for CY2017
GREYWATER SUPPLY
Municipal Water Supply..... 67% MUNICIPAL Greywater Supply...... 33% WATER SUPPLY
Looking Forward: Water Management We recognize that water is one of our most precious resources, and will remain committed to reducing our use throughout FY2019. To achieve this, we will continue to seek out new and innovative solutions, opportunities, and technologies, including assessing and monitoring our water usage data to determine best practices, approaches, and policies around our water management.
ENVIRONMENTAL SUSTAINABILITY 07 OUR EMPLOYEES
BACK TO CONTENTS 053 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
OUR EMPLOYEES OVERVIEW
Our employees form the heart and soul encompasses more than 120 nationalities of our business—from the technology spanning more than 20 countries globally. behind our products to the sustainability We employ some of the brightest minds of our growth and performance. This in technology, science, and business, and was the driving force behind our FY2018 we recognize that successful employees priority of “Focus on People.” are the driving force behind our success as a business. We establish goals each year Because we rely on our diverse workforce to retain these employees, and in FY2018 to develop, deliver, and sustain business our voluntary employee turnover was nine strategy and achieve our goals, we percent worldwide, exceeding our goal of believe that to focus on people is to 10 percent. focus on business. This requires aligning, developing, and communicating with We continue to focus on creating an our workforce through a refreshed goal- optimal organization aligned to market setting process and related activities to demands, and actively recruit employees drive engagement. It also requires our that align with our value of Innovation. We continued commitment to uphold labor hire new graduates as well as mid-career and human rights, cultivate a diverse and employees via global recruitment and inclusive work environment, promote branding activities, and seek to attract a employee health, safety, and wellness, wide variety of talent. In FY2018 we added and provide employees with opportunities more than 11,000 employees into our for development and growth. global workforce community.
Our workforce is comprised of over 42,000 regular employees, 99 percent of whom are employed full-time. Our workforce
OUR EMPLOYEES 054 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
LOOKING FORWARD: SEAGATE EMPLOYEES
Shifts in our industry mean shifts in our workforce. As we address these shifts throughout FY2019, we plan to offer programs designed to retrain targeted employees to ll positions in high demand, which may be less feasible to outsource. Our voluntary turnover goal will remain at 10 percent globally, and we will continue to recruit employees that align with Seagate values.
Total Global Employees By Region
Americas: 12.0%
Asia Paci c: 84.2%
EMEA: 3.8%
Total Global Employees Female 59.6% Male 40.4% By Gender Full-time 99.7% Part-time .3% Full-time 99.8% Part-time .2%
FY18 Global Hires Total: 11,267
BY GENDER BY AGE GROUP BY REGION
Female 66.2% <30 71.1% Americas 2.6% Male 33.8% 30-50 28.0% Asia Pac 96.4% >50 0.9% EMEA 1.0% ENVIRONMENTAL SUSTAINABILITY 055 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Human Rights and Labor
Throughout our global operations, Code, and actively pursue conformance Seagate lives its value of Integrity. As throughout our operations. In FY2018 all part of our commitment to respect manufacturing sites, representing 86% and protect human rights, we seek to of our workforce, conducted annual uphold the highest standards in our assessments to identify and mitigate labor practices. Our company policies labor and human rights risks that could adhere to applicable local labor laws, arise. These sites also participated in are consistent with both the United internal labor audits to ensure policies Nations Global Compact (UNGC) and and practices are aligned with local the International Labor Organization legislation and the RBA code. The six (ILO) core labor principles, and conform countries where all of our manufacturing to the Reliable Business Alliance (RBA) does operations that included the Code of Conduct. assessment are the United States, Malaysia, China, Thailand, the United As a member of the RBA, we fully Kingdom, and Singapore. adopt and adhere to the human rights framework incorporated in the RBA
OUR EMPLOYEES 056 FY2018 GLOBAL CITIZENSHIP ANNUAL REPORT
Our internal Human Rights Policy, or other basis protected by law. which was adopted in 2004, is • Freely Chosen Employment: reviewed annually, and includes clear We ensure that employees work of statements about our commitment to their own free will and there is no labor and human rights. The policy is forced, bonded, or indentured labor, communicated to new hires during involuntary prison labor, slavery, orientation and onboarding, and annually or trafficking of persons in our to all employees to build awareness workforce. Through RBA VAP audits and drive transparency within our there have been no cases of forced organization. In FY2018, during our labor found in our operations, and annual policy acknowledgment program, our ongoing commitment keeps such this policy was communicated to over cases at a low risk. 17,000 nonoperator employees and more than 99 percent reviewed and • Freedom of Association: We acknowledged the policy. This policy understand the importance of good covers key areas such as: labor relations and respect the right of employees to choose whether • Respectful Workplace: We or not to join unions and engage in are committed to a workforce collective bargaining; as permitted by free of harassment and unlawful applicable laws in the countries where discrimination. We have established Seagate does business. We respect recruitment and employment our employees’ rights to freedom of practices to safeguard against association and collective bargaining. discrimination based on age, Slightly more than 15% percent race, color, ancestry, ethnic or of our worldwide employees are national origin, physical or mental represented by unions and we strive disability, medical condition, genetic to maintain positive relationships with information, marital status, sex (which those representatives. We have not includes pregnancy or perceived identified any operations in which the pregnancy, childbirth, breastfeeding, right to exercise freedom of association or related medical conditions), gender, or collective bargaining may violate gender identity, gender expression, applicable laws or be at significant risk. sexual orientation, perceived or actual religious creed or political opinion, • Young Workers: We do not military and veteran status, taking or employ child labor and we have requesting statutorily protected leave, established 18 as the standard taking or requesting a reasonable minimum age for employment, accommodation for a protected basis, which complies with or exceeds
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local legal requirements. Through • Open Communication: We look RBA VAP audits there have been to foster an open, collaborative no cases of child labor found in environment where people feel our operations and our policy and empowered to give and solicit processes keep such cases at a feedback or raise concerns. We low risk. communicate this approach through our Open Door policy, which outlines • Working Hours: We ensure that our formal and informal complaint or employees are not working excessive grievance procedures for each overtime by complying with the Seagate location. Additionally, maximum number of working hours employees have easy access to the and required rest days as set by Seagate Global Ethics Helpline to the RBA code or local legislation, report complaints or concerns. We whichever is more strict. also look to gain feedback from our • Wages and Benefits: Our employees through our micro surveys, compensation practices comply which are conducted twice per year, with applicable wage laws and and other feedback mechanisms that international standards, including our sites have put in place. those relating to minimum wages, overtime compensation and legally mandated benefits.
Looking Forward: Labor and Human Rights In FY2019 we will continue to uphold our commitment to protecting human rights and setting higher labor standards. In addition, we will focus on continuous improvement, and will perform annual Labor and Human Rights Risk Assessments, internal audits and participate in one planned external third-party audit.
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EMPLOYEE HEALTH, SAFETY, AND WELLNESS
Employee Health & Safety
Seagate is dedicated to keeping our employees safe, healthy, and well. Our efforts are the result of over a decade of collecting health and safety performance indicators, which are used to inform our strategies for reducing risks associated with work-related injuries and illnesses. Today, our health and safety management systems support continuous improvements across our risk reduction and mitigation efforts.
All of our manufacturing sites have health With well-defined responsibilities, and safety management systems certified requirements, and training aimed at to OHSAS 18001. We work hard to ensuring that health and safety are fully keep our employees safe and healthy, integrated into Seagate operations, we which is why our global health and safety help to ensure that all employees, from all standards, as well as our accompanying functions and global locations, understand management systems, frequently go that they are accountable for their own beyond country or industry-level guidelines. actions while on the job.
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In FY2018, Seagate remained a safe received no notice of violation findings in place to work and continued to perform FY2018, and no fines were levied. well under safety and health industry Remaining focused on the continuous averages, as based on the standard improvement of employee health calculations and industry averages and safety, we continued to provide determined by the Occupational Safety and Health Administration (OSHA). There comprehensive health and safety training were no work-related fatalities in FY2018. to our employees and completed more Our recordable case rate, the number of than 62,000 health and safety e-learning employees per 100 full-time employees courses in FY2018. We continue to that were involved in a recordable injury emphasize e-learning courses as our main or illness, was 0.16 for the year; and our vehicle for delivering training because days-away case rate, the number of lost employees can learn at their own pace. workdays per 100 full-time employees, In FY2018, we served more than 600,000 was 0.08, down from 0.14 in FY2017. meals globally per month (on average), Seagate uses the OSHA definition for and have a formal food safety program at injury types and injury rates. all of our sites. We also bused employees Seagate hosted 36 health and safety over five million miles, with just 4.8 regulatory visits in FY2018, focused incidents per one million miles traveled. All on issues such as safety, radiation, fire incidents were investigated and actions codes, food, and transportation. Seagate taken to prevent reoccurrence.
Employee Benefits Seagate’s benefits are benchmarked to local market practices, industry norms, and cultural requirements, and reflect our standards as a competitive, multinational organization. Although these programs take different forms geographically, Seagate’s plans offer value and flexibility throughout, in support of our employees and, in some cases, their dependents.
Seagate’s benefits are benchmarked to take different forms geographically, local market practices, industry norms, Seagate’s plans offer value and flexibility and cultural requirements, and reflect our throughout, in support of our employees standards as a competitive, multinational and, in some cases, their dependents. organization. Although these programs
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We offer regular employees in our that enable themto improve their health major locations comprehensive and the quality of their lives. Seagate benefits coverage, which reflects strives to cultivate an environment of our commitment to our people. This health and wellness including both plan includes health care, wellness physical and emotional health, as well as programs, parental leave, paid time- financial wellness. Our Healthy Journeys off, retirement savings opportunities, program seeks to educate, encourage, life insurance, disability coverage, and and support our employees as they work equity ownership opportunities. on achieving their health and wellness Seagate is committed to a culture of goals. Because our benefits programs health and well-being for our employees are managed at a country or site level, in which is critical to the stability and vitality line with local legislation and employment of our business. Our goal is to provide our policies, the Healthy Journeys program employees with the tools and resources varies from location to location.
In the United States We promoted our Healthy Journeys as back health, stress relief, teens' risky program by providing on-site biometric behavior, and living with cancer. We offer screenings, health risk assessments, our employees Wellbeats Virtual Fitness health coaching, site-level activities, Classes that give U.S. employees access and two U.S.-wide wellness challenges to hundreds of fitness classes of varying aimed at encouraging physical activity, specialties and lengths, which can be social connectedness, and relaxation. accessed from anywhere at any time. We also offered webinars on topics such
In EMEA (Europe, Middle East, and Africa)
We continued to provide robust wellness their walking distance and take their offerings throughout the EMEA region, regular exercise outdoors. Additionally, we including a weight loss event and a launched a training series aimed at heart specialized walking challenge designed health and stroke awareness, mindfulness to encourage employees to increase classes, and speakers on caregiving.
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In Asia Our goal is to offer our employees in Throughout Asia, our programs include Asia a one-stop portal for their health on-site and off-site health screening, and wellness needs by FY2020, financial wellness/retirement planning starting with Singapore in 2018, education, and overall physical China in FY2019 and the rest of Asia activities, such as Fun Run in Thailand by FY2020. The portal gives them and an inter-site badminton tournament access to educational materials, health between Singapore and Malaysia. In screening results, and health risk the area of mental wellness, workplace assessment. Its mobile application resilience training, where applicable, is makes it easily accessible to operators. offered to Supervisors.
Looking Forward: Employee Health, Safety, and Wellness Globally, we will continue our Healthy Journeys program, offering challenges throughout the year, with the goal of encouraging and rewarding employees for taking steps toward better health and wellness— physical, mental, and financial.
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EMPLOYEE PERFORMANCE, LEARNING, AND ENGAGEMENT
Seagate recognizes its people as its most important asset and the skills and engagement of our employees are key to business performance. This means trust, excitement about the future, a strong sense of belonging –as well as clear and challenging goals and learning paths. We believe that learning and development is a combination of education, exposure, environment, and experience. We are dedicated to offering our employees the opportunity to enhance their skills and knowledge through a variety of offerings. Our ecosystem for learning and development at Seagate is broad and consists of our performance management system, our HR portal, virtual coach, Seagate Learning Platform, and LinkedIn Learning.
Performance Management
Performance Management is a receive ongoing feedback and coaching continuous process that helps team throughout the year. Our nonoperator members focus on the right priorities. employees develop two to three clear, Meaningful conversations between meaningful goals and one stretch goal to managers and employees have been the drive innovation, that are all aligned to our foundation of performance management overall company strategy. The progress at Seagate. In FY2018 we moved from toward these goals is assessed twice static performance ratings to focus on during the year based on progress against dialogue centered around manager and goals and demonstrated behaviors. In employee conversations, and ongoing FY2018 our goal was to have 95% of our feedback, to align goals. This approach nonoperator employees participate in removes the emphasis on annual the performance management process. performance reviews and ratings and We exceeded this goal with 97% of our focuses instead on the high-quality, nonoperator employees documenting productive dialogue between managers their goals in our online system and 98% and employees. Our operator employees receiving a year-end goal review with work directly with their supervisors to their manager.
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Learning
Learning and development are key LinkedIn Learning for our employees. aspects of continuously growing our This cloud-based tool added more talent pool and keeping them engaged, than 6000 technical, professional, and underpinning our innovation and IP, all leadership courses to our list of learning while being flexible and adaptable as we opportunities. It is a great tool to use pursue our strategy. A leader’s role is for fast, easy-to-execute, “just-in-time to help employees define development learning,” and a way for managers to needs and goals and to connect promote development during quarterly employees with resources. Employees are check-ins. This system also helps us encouraged to have documented learning create global role-based curricula in the plans that outline their plan to grow and form of Learning paths for Professionals, develop in their current role and prepare New/Experienced Managers and for future roles at Seagate. In FY2018 Leaders. Also during the past year more more than 96 percent of our nonoperator than 20,000 operator employees were population had learning plans. trained on a variety of topics, such as health, safety, and environment. Overall, We offer various ways for employees the average number of training hours to learn and we have more than 2500 per employee was more than 30 (a courses through the Seagate Learning combination of training records from our Platform as well as face-to-face training Learning Management System, LinkedIn opportunities. In FY2018, we expanded Learning, and Operations Training our education offerings by adopting Management System).
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Engagement
Employee engagement is the commitment with leaders, and managers work with and passion that drives people to their teams to develop targeted action achieve goals and connect as a team. plans. These action plans follow a 1-2-3 Our biannual micro survey is designed approach where teams pick one issue to to help us understand global employee improve from the micro survey results, two perspectives on engagement. During things that the team sees as important FY2018 over 90% of our global non- to implement, and then they commit to operator employees responded to share having three meaningful conversations their perspectives on respect, belonging, about their progress. Using the micro challenging work, and the direction of the survey results to have open, candid company. discussions is an important step in driving Once the survey concludes and results engagement and trust that our workplace are analyzed, they are then shared is a safe place to speak up.
Looking Forward: Employee Performance, Learning and Engagement We plan to continue to seek feedback from our employees and in FY2019 we will be expanding our micro surveys to include our operator population. The timing of these surveys has been adjusted to better align with our performance management cycle and will include questions that focus on our updated corporate values–Inclusion, Innovation and Integrity. Additionally, we will promote using LinkedIn Learning Paths to assist managers and employees by providing a guide of suggested courses for targeted roles within the organization to help them reach their development goals.
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DIVERSITY AND INCLUSION
At Seagate, we strive to make each location a place where every employee feels they belong. We work to create and sustain an inclusive environment that embraces, respects, and leverages the diversity of our employees. Diverse people bring diverse perspectives that are key to effectively addressing the complex challenges we face in our industry, and we believe that diversity improves productivity and innovation.
At Seagate, we view diversity through • Diversity of Identity refers to the visible Diversity of Thought and Diversity of and non-visible human characteristics Identity. that constitute identity: gender or gender identity, race, age, sexual • Diversity of Thought refers to orientation, ancestry, physical abilities, differences in perspective and religion, and more. At Seagate, expertise: people from various everyone should be treated fairly backgrounds and experiences bring and with dignity. There is room for different approaches to solving everyone in our company and we problems. Innovation and continuous welcome diverse people and diverse improvement are the result of fresh perspectives. ideas being strengthened by including many points of view.
A Culture of Inclusion
We are committed to promoting a culture Employee Resource Groups of diversity, inclusion, and belonging in One way Seagate embraces its diverse which everyone feels valued, respected, employees and promotes a culture and engaged as we embrace the unique of inclusion is through the support skills, experiences, and talents of our global of employee resource groups (ERG) workforce. Creating a diverse and inclusive at our sites. ERGs provide a place of culture helps employees know they are connection and workplace-related valued and respected, and empowers resources for Seagate’s diverse them to bring their best ideas forward. workforce and allied employees. Groups
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host internal and external educational FY2018, the Seagate PRIDE! ERG was events, networking, and community established. In June, all U.S. Seagate engagement activities with local charities sites flew the rainbow flag in support related to the ERG missions. of the Seagate PRIDE! community, and several sites held receptions. Seagate To support existing and emerging ERGs, was the lead sponsor of two PRIDE!- Seagate provides an online platform, related festivals near the Colorado office. development tools, and resources. Seagate provides guidance to ERG Unconscious Bias Program leaders from our research partners’ Seagate provides all employees with leaders: PricewaterhouseCoopers, education regarding unconscious Gartner, and Neuroleadership Institute. bias and inclusion via an internal site. Each ERG has executive support and As a signatory of the CEO Action for funding. Employees can find out about Diversity and InclusionTM from PwC, in and join an ERG by visiting a global, online FY2018 Seagate provided employees platform accessible to all employees. with access to resources promoting In FY2018, Seagate supported site unconscious bias education. Employees chapters of the Seagate Women’s also have access 24x7 to LinkedIn Leadership Network throughout the U.S., Learning courses on unconscious bias, in Northern Ireland, and in China. Also in diversity, and inclusion.
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Building a Diverse Workforce
Diverse talent is essential for our business. are also partnering with websites such The diversity of people improves as FairyGodBoss to highlight our female productivity and innovation. We value employees and post opportunities that are and embrace all backgrounds, cultures, available at Seagate. Last year in the U.S. affiliations, abilities, work styles, and almost 35% of our new hires were female. perspectives. Our Talent Acquisition team We also work closely with organizations continues to refine strategy and tools to such as America’s Job Bank to push our improve how we hire. In FY2018 our Talent jobs to diversity and veteran websites to Acquisition team partnered with hiring continuously expand our pipeline. While we managers to ensure that a broader set are making improvements, we realize there of skills and experience are considered is still work to do and remain committed to for opportunities—not only when hiring improving the diversity of our workforce. externally but also when considering The University Recruiting program is internal talent. The direction is to focus on integral to our recruitment strategy in skill set, competencies, and experience, building our pipeline of talent. In this global rather than just specific academic strategic program we are partnering with qualifications and tenure, using behavioral- identified institutions to attract intern and based interviewing—essentially working graduate hires with specific skill sets. We to ‘screen in’ instead of ‘screen out’ talent. offer internships which provide valuable This enables Seagate to benefit from, and work experience and pipeline opportunities be inclusive of, a diverse candidate and to jobs at Seagate. In FY2018, we had employee population. over 250 interns at our locations globally in We continue to make efforts to improve technical and no-technical disciplines. We the diversity of our workforce at all leverage local partnerships with minority levels. To help us in reaching prospective organizations, such as the Society of employees, we’ve expanded our social Women Engineers (SWE), and in FY2018, media presence to include career pages 36% of our interns and 40% of our on Instagram, Facebook, and Twitter graduate hires were female. that focus on our employees, career opportunities, and life at Seagate. We
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GLOBAL EMPLOYEES
Minority/ By Gender By Age Group Nonminority Job Role Minority Nonminority Female Male <30 30-50 >50 (US Only) (US Only)
17.7% 82.3% 0.0% 29.0% 71.0% 17.0% 74.5% E
16.9% 83.1% 0.0% 46.9% 53.1% 26.8% 69.4%
28.0% 72.0% 0.6% 73.4% 26.0% 28.3% 66.9% M
36.4% 63.6% 5.7% 77.3% 17.0% 27.0% 73.0% S
30.6% 69.4% 16.2% 63.8% 20.0% 33.6% 62.7% P
17.0% 83.0% 17.2% 68.5% 14.2% 48.8% 49.5% S
81.2% 18.8% 36.1% 59.6% 4.3% 78.8% 19.8% O
59.6% 40.4% 27.6% 62.1% 10.3% 38.8% 50.0% Total
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Looking Forward: Diversity and Inclusion We are proud of our diversity as it is the key to our past and future success— but we are challenging ourselves to do more. Making a diverse organization inclusive takes commitment, and in FY2019, inclusion is moving into the spotlight as one of our key corporate values. There will be more focus on the key levers of diversity. We will continue to expand our hiring efforts. We will integrate diversity focus into our talent development and promotional processes. We will focus on retention of diverse talent through promoting an inclusive environment that ensures equal pay for equal work, focused training and change management around unconscious bias, as well as communication around creating and supporting an inclusive work environment that will include executive videos, blog posts, and learning opportunities on diversity- related topics. Our ERGs will be expanding the site activities they participate in as well. We will continue to focus on our diversity pipeline by participating with female and minority engineering organizations on local levels and also participating in U.S. conferences for the Society of Women Engineers and the National Society of Black Engineers.
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CASE STUDY: SEAGATE AMBASSADOR PROGRAM
Inclusion is the key to innovation, brand, business, and product portfolio, and as a diverse and competitive and represent Seagate at an industry company, Seagate understands the event of their choosing. value of our employees’ unique skills, “This is a brand new initiative designed ideas, and backgrounds in driving to put our most passionate employees sustainable growth. Nobody is more on the front lines of data storage, where passionate about what we do than our our company meets our customers,” employees, and in FY2018 we launched says Seagate CEO Dave Mosley. “It’s the Seagate Ambassador Program to really our people—their skill sets and their share that passion with our customers, knowledge—that will ultimately drive the stakeholders, and the world. future success of Seagate.”
Open to employees from a number of Since the launch of the program in diverse functions, departments, and FY2018, we have had a total of 90 global locations, our Ambassador participants, representing nine different Program offers individuals the countries. In total, Seagate Ambassadors opportunity to grow their professional represented the Seagate brand at sixteen network, build their knowledge of our industry events across the globe.
OUR EMPLOYEES 08 COMMUNITY ENGAGEMENT
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COMMUNITY ENGAGEMENT OVERVIEW
Over the past four decades, Seagate has helped to strengthen and transform the communities where we live and work by investing time, talent, and money, as well as through charitable donations of goods and services.
In FY2018, we engaged stakeholders, Our Community and Corporate Giving including employees, local community program presents opportunities members, nonprofit partners, civic and for us to put our corporate values academic institutions, and governments into action and give back to our with community programs being communities. Seagate offers featured at all major company locations. community engagement opportunities Employee volunteers contributed to at its major locations (500 or more initiatives supporting education and employees), comprising 96 percent of fostering safe, healthy communities. our workforce.
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Supporting education, particularly students. This number is in line with our in the areas of Science, Technology typical range of students impacted per Engineering and Math (STEM), is a major year, and we are humbled to continue priority for Seagate, and we aim for at to have the opportunity to introduce least 50 percent of our outreach efforts students to the world of STEM. Engaging to target theses areas. In FY2018, 63 students and the 72,000 people who percent of our outreach efforts were make up their networks and communities, education-related. from parents to teachers, we were able to instill a positive brand experience and Many of our FY2018 efforts focused on build meaningful connections. fundamental learning, from hosting the middle school Mathcounts competition Other activities Seagate employees in Colorado to supporting STEM learning participated in focused on helping people curricula in seven underserved schools in need, including a New Year’s meal in India. Other efforts provided more for several hundred seniors in China. targeted engagements, leveraging our In Colorado, 90 Seagate volunteers expertise in automation technology prepared more than 1000 hot meals for and supporting youth robotics activities people without a home. across Minnesota, Colorado, India, Employee volunteers in California were Northern Ireland, Singapore, Malaysia, able to reach more than 2500 student and Thailand. participants at Tech Challenge, a student It’s no secret that our teams work hard to STEM event. Over 45 percent of the meet the high demand for our products. students were from low-income school But despite this, our volunteers in FY2018 districts, and approximately 43 percent of were able to reach more than 26,000 the student participants were female.
Program Highlights
In line with our value of Inclusion, • In Colorado, about 250 female Seagate understands the importance students participated in Seagate- of reaching underserved communities. sponsored activities. These included In FY2018, nearly 44 of the 153 events “Expand Your Horizons” workshops, and causes we supported reached with approximately half coming from underserved and diverse schools and underserved communities; and Casa students. Here are a few highlights from FIRST Robotics, serving children some of our education outreach: from migrant families.
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• In Minnesota, about 100 students schools. Seagate also sponsored from inner-city schools attended Tech’s ongoing field-trip program the Seagate-support STARBASE for schools, which reaches more summer science camp, which than 100,000 students annually, 60 included Seagate technology demos. percent of whom come from low- income school districts. • About 2500 underprivileged children in Thailand went on Seagate- • At our site in Northern Ireland, sponsored field trips to the National Seagate delivered the Raspberry Science Museum or a regional Pi program—in partnership with science camp. Another 1000 STEM Aware—at local schools via benefited from lab and science workshops, and at other regional equipment donated by Seagate to schools via online teaching materials. local primary schools. An estimated 540 female students were reached. Volunteers also • In California, Seagate supported delivered a Raspberry Pi workshop at the Tech Museum of Innovation’s the Northern Ireland Science Festival. annual “Tech Challenge,” a large Involvement in this event helped to regional STEM competition in generate additional positive brand Silicon Valley. More than 2500 exposure in connection with STEM. students participated, 45 percent of whom were from low-income
Looking Forward: Community Engagement As we look forward to FY2019 and beyond, we will focus on using volunteer opportunities as a touchpoint for reinforcing employee engagement and fostering positive brand awareness among those in our communities. We will also continue to explore ways we can begin to increase the focus of our educational outreach on company areas of strength and value, such as the datasphere and our products.
COMMUNITY ENGAGEMENT 09 SUPPLY CHAIN
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SUPPLY CHAIN OVERVIEW
Seagate is a dynamic and globally diverse company, and our success is dependent on our ability to act quickly to customer and market demands. This strategic agility and flexibility is not possible without the robust community of partners that make up our global supply chain.
Underpinned by educational Seagate conducts multiple trainings, outreach, strategic management, either directly to suppliers in and a commitment to transparency, collaboration with industry partners or Seagate’s supply chain ensures that by leveraging tools provided to us by people are treated fairly and resources the RBA. We use the Self-Assessment managed responsibly. With thousands Questionnaire (SAQ) and Validated of suppliers across the planet, Audit Process (VAP) as primary risk from consultants to manufacturers, assessment tools. When there are audit findings, we require root cause and managing Seagate’s supply chain corrective action plans. effectively requires the cohesion and dedication of a diverse, global team. The RBA Closure audit is our preferred option when verifying the successful We have two categories of suppliers: closure of audit findings, and our direct and indirect. Direct suppliers requirements are documented in provide components and parts for our Corporate Standard Operating our products, while indirect suppliers Procedure (CSOP). Supplier provide products and services that performance in audits and closure support our operations. Comprised findings are scored in the Quarterly of four aspects spanning Code, Supplier Scorecard for the effected Capacity Building, Risk Assessment, supplier. In addition, our supply chain and Remedy, Seagate’s Supply Chain disclosures are aligned with the and Global Citizenship programs are California Transparency in Supply Chain aligned with the RBA Code of Conduct, Act as well as the UK Modern Slavery which also serves as the code of Act, reflecting our ongoing commitment conduct for our suppliers. to transparency and integrity.
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Supplier Engagement and Collaboration Proactively engaging our suppliers is an ongoing objective, and we regularly meet with suppliers to share expectations and evaluate our engagement. In addition, we maintain long-term relationships with many of our top-tier suppliers in order to ensure our goals and standards are aligned.
For service providers such as labor sessions to small groups and webinars. agents, janitorial services, and canteen Partnering with Intel, HP, and WD, Seagate providers, which all provide talent at our conducted trainings in Kuala Lumpur and sites, we require adherence to Seagate’s Penang, Malaysia, as well as in Bangkok, CSOP. This ensures that all of our on- Thailand. Seagate also hosted a two-day site service providers are held to the training in Singapore aimed at educating same standards as our own workforce. suppliers on the issues of forced labor, Seagate does not currently use foreign helping them to develop stronger internal labor via agents, and we partner with control and monitoring systems, and recruitment agents in both China and providing assurance to our stakeholders the U.S. who provide local talent. that Seagate’s supply chain is free from Our Supply Chain organization has forced labor. full-time staff and dedicated resources We require all of our suppliers to update designed to ensure new and existing their SAQs annually. In FY2018, 122 suppliers are educated on RBA suppliers either completed or updated compliance, conform to and comply their SAQ and released the SAQ via the with the law. RBA-ONLINE system. We also worked Strong collaboration is essential for to align suppliers with the latest RBA supply chain success. As such, Seagate Code of Conduct revision update, hosts a number of Executive Business Conflict-Free Mineral development plan, Reviews designed to showcase our RBA and RBA environmental questionnaire. compliance and sustainability efforts to Throughout FY2018 Seagate continued supplier leadership. We also engage our to play a major role in the RBA, with one suppliers on key projects that focus on of our Senior Vice Presidents serving as issues such as RBA conformance, financial vice chair of the RBA Board of Directors. sustainability, and process improvement. We also co-lead the Risk Assessment Throughout FY2018 we conducted a Workgroup, and in FY2018 participated number of educational outreaches and in various other workgroups and task supplier trainings, ranging from one-on-one forces spearheaded by the RBA.
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Stakeholder Engagement
Throughout FY2018, Seagate continued at the workers’ home country, and our engagement with a supplier in Seagate is currently working with the Thailand, on the allegation made by aforementioned supplier to quantify the the MWRN and Electronic Watch amount and initiate reimbursement.
that recruitment fees were being It must be recognized that the collected from workers. Based on identification of recruitment fees, our initial investigation, a total of 221 especially in a worker’s home country, foreign workers (from Myanmar) were has been extremely challenging; Seagate reimbursed 150,000 kyat. Further is working closely with the RBA and investigation revealed that additional other customers at supplier facilities to recruitment fees were being collected address this issue.
Supply Chain Audits
To ensure integrity throughout our Seagate also requested 23 suppliers supply chain, Seagate requires all of undergo closure audits in FY2018. our direct materials suppliers with It is the objective of these audits to whom we spend at least $1 million ensure that suppliers found to be annually, as well as selected indirect noncompliant have implemented suppliers, to undergo the RBA VAP measures to correct violations identified audit process. RBA VAP audit reports in the initial VAP audit. If suppliers are valid for two years, and our cannot close the findings, we will work suppliers are on a two-year audit cycle. to reduce the level of severity from We completed 63 full supplier audits “priority” and/or “major” to “minor.” We through the RBA VAP in FY2018, up then track the closure rates. from 56 in FY2017. In addition to tracking SAQ and VAP In FY2018, 10 percent of audited completion, Seagate also tracks finding suppliers received Platinum Level closure rates. At the end of FY2018, the recognition through VAP, meaning they closure rate of nonworking hour findings achieved a full score in the initial audit. was 71 percent; the closure rate of This reflects our ongoing efforts to working hour findings was 41 percent. engage, educate, and partner with our suppliers to make sure they have the necessary tools to be compliant.
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Top 10 Supplier VAP Audit Findings
1. Working Hours 6. Occupational Injury and Wellness 2. Emergency Preparedness 7. Hazardous Substances 3. Occupational Safety 8. Supplier Responsibility 4. Freely Chosen Employment 9. Sanitation, Food, and Housing 5. Wages and Benefits 10. Nondiscrimination
FY2018 Supplier Audits by Country
INDONESIA China...... 32% KOREA Thailand...... 19% US JAPAN Malaysia...... 16% CHINA PHILIPPINES Singapore...... 13% SINGAPORE Philippines...... 6% Japan...... 3% US*...... 3% MALAYSIA THAILAND Korea...... 3% Indonesia...... 3%
We remain vigilant to the risk of child As for freedom of association and labor, forced labor, and threats to the collective bargaining, our audit results freedom of association within our supply have not identified any geographies of chain. The highest risk of forced labor in concern; most of the findings in this our supply chain is where foreign labor is area are related to suppliers not having utilized; suppliers in Malaysia, Thailand, a policy/procedure on the right of and Singapore pose the highest risk. peaceful assembly. This is why our training on forced labor has been focused on suppliers in these In FY2018, all of our 186 targeted countries over the past three years. suppliers completed the SAQ. Based on our supplier VAP audits, child Additionally, we assigned 111 suppliers labor has not been identified as a serious the RBA Environmental survey, which concern in our supply chain. However, gathers information on energy, water, according to various nongovernmental and waste. All 111 suppliers completed organization (NGO) reports, student the survey, making FY2018 the third workers in the China supply chain consecutive year in which Seagate represent an area of possible concern. achieved a 100 percent response rate.
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Seagate also conducted environmental suppliers were found on the database for compliance screenings of 43 Chinese issues pertaining to operation permits, suppliers via the Institute of Public and construction permits, and hazardous Environmental Affairs (IPE) database. waste requirements not met. All instances Based on our screenings, three of our of noncompliance have been closed.
Supplier Diversity
With major operations in six countries, for our business. As a result, we gain spanning North America, Asia, access to solutions that not only meet and Europe, Seagate has great our customers’ requirements, but allow diversity among its employees, local us to build meaningful and invaluable communities, and global customer business relationships. base. We are committed to fostering a diverse workforce, reflective of our Seagate recognizes the value and external stakeholders. In line with our buying power of minority-owned value of Inclusion, Seagate is committed businesses. Diverse suppliers in the U.S. to providing an inclusive and supportive are welcome to participate in Seagate’s environment where all employees competitive bidding process, including feel valued, safe, respected, and businesses owned and operated empowered to participate fully in the by minorities and those located in Seagate employment experience. historically underutilized business zones.
Seagate encourages diversity We are proud to play a part in helping throughout our supplier base, and our diverse suppliers grow, create jobs, contracts regularly with diverse suppliers and, in turn, strengthen the communities who qualify and successfully compete where they live and do business.
FY2018 Diversity Spend (U.S. Only) $187.91M
HUB ZONE DISADVANTAGED VETERAN OWNED Small Business...... $108.38M 58% WOMEN OWNED Minority Owned.... $ 67.32M 36%
MINORITY SMALL Woman Owned.... $5.94M 3% OWNED BUSINESS Veteran Owned.... $4.46M 2% Disadvantaged..... $1.78M 1% Hub Zone...... $0.03M 0%
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Looking Forward: Supply Chain As we continue to innovate solutions that offer higher capacity, our focus remains on identifying and building strong synergies with our suppliers. We believe a collaborative approach to supply chain management is the most efficient way to achieve our capacity goals and meet our customer needs, and demonstrates our alignment with industry expectations. We will continue to carry out capacity building with our suppliers in the coming year.
Seagate will continue its involvement on the RBA Senior Executive Advisory Council, and will strive for 100 percent completion rates among all identified suppliers (direct and indirect) of the RBA SAQ. In addition, we have a goal of 100 of identified suppliers completing a third-party RBA VAP audit.
SUPPLY CHAIN 10 BUSINESS CONTINUITY
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BUSINESS CONTINUITY OVERVIEW
Seagate understands that the world is a complex and unpredictable place, and that there exist innumerable risks and threats to our business. We also understand that a disruption in our business should not constitute a disruption for our customers and stakeholders, and work hard to ensure that we are prepared and ready should a disruptive event occur.
Throughout FY2018, Seagate continued BCMS encompases four areas—Incident to implement our Business Continuity Management, Crisis Management, Management System (BCMS) to help us Business Continuity Planning, and identify, manage, and mitigate the various Disaster Recovery Planning—and aligns risks and threats to our business. Our to our current management system.
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An overview of our BCMS is available audited in FY2018 and maintain their to our customers and is evaluated and ISO 22301 certifications. updated annually. The FY2018 version A Business Continuity Readiness Index was updated to reflect changes in the (BCRI) was continued for the drive company and our program. sites, and expanded to component Deployment of Seagate’s enterprise manufacturing locations in FY2017, business continuity software was further with further implementation throughout enhanced throughout FY2018, with over FY2018. Twenty different data points are 200 employees across China, Thailand, evaluated, each one worth five points, Malaysia, and Singapore completing which mirrors the implementation steps system training. Our drive manufacturing required to attain ISO certification. facilities in China and Thailand were
Looking Forward: Business Continuity We will continue to implement and improve our BCMS throughout FY2019, including further deployment of our enterprise business continuity software and the extension of the BCRI to all sites across our global footprint.
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SUMMARY OF PERFORMANCE
PERFORMANCE INDICATOR FY2016 FY2017 FY2018
Energy Consumption 1.636 1.633 1.567 (Million MWh) Energy Consumption per Storage Capacity Shipped 7,018 6,220 4,634 (MWh/EB) ENERGY Scope 1 and Location-Based Scope USE AND 2 GHG Emissions 1.260 1.290 1,157 (Million Metric Tons CO e)1,2,3 CARBON 2 EMISSIONS Scope 1 and Location-Based Scope 2 GHG Emissions per Storage 5,675 5,115 4,053 Capacity Shipped 1,2,3 (Metric Tons CO2e/EB) Scope 3 GHG Emissions 1 5.229 4.988 13,883 (Million Metric Tons CO2e) Water Withdrawal 11.927 10,119 9,047 (Megaliters)1
Water Recycled WATER 17% 19% 22% (Percentage)1 USAGE Water Intensity (Megaliters/EB of storage capacity 54 40 31.7 shipped)1
Hazardous Waste Generated 10,445 10,211 8,457 POLLUTION (Tons) PREVENTION Solid Waste Diverted 84% 84% 83% (Percentage)
Injury and Illness Recordable Case Rate .23 .22 .16 HEALTH (Cases/100 employees) AND SAFETY Injury and Illness Days-Away Case Rate .11 .14 .08 (Cases/100 employees)
Ethical Conduct and Conflict of ETHICS Interest Policy Certification 99% 99% 99% (Percentage)
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PERFORMANCE INDICATOR FY2016 FY2017 FY2018
Nonoperator Employees Completing Annual Performance Evaluation 98% 98% 98% Process OUR Nonoperator Employees With with 96% 95% 97% EMPLOYEES Performance Goals
Nonoperator Employees With with 90% 90% 96% Learning Plans4
1. Total annual carbon emissions, carbon emissions per storage capacity shipped, and water metrics are measured and reported based on the calendar year. The values provided in this table are for calendar years 2015, 2016 and 2017.
2. In CY2015 three adjustments were made to the 2011 through 2014 inventory years. The adjustments were due to a methodology change in how Scope 2 emissions are reported, the identification of leased facilities not captured in previous inventories, and updated global warming potentials (GWP) in the IPCC Fifth Assessment Report. Seagate follows the guidelines in the GHG Protocol for adjusting the base year GHG inventory.
3. Includes Scope 3 emissions from business travel and employee commute only.
4. Change in system and process resulted in lower development plan numbers in FY2016 and FY2017.
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UNGC CONTENT INDEX
Seagate has been an active participant in the United Nations Global Compact (UNGC) since 2004, and we have aligned our management systems to the 10 universally-accepted principles in the areas of human rights, labor, environment, and anticorruption. These principles guide us as we develop new programs and strategies in the area of global citizenship. We are committed to the implementation, disclosure, and promotion of the UNGC’s Principles throughout our operations. The table below provides a guide to our strategies and actions in support of the 10 principles.
THE BUSINESS SHOULD UNGC SUSTAINABILITY SUPPORT AND/OR UPHOLD DEVELOPMENT PAGES PRINCIPLE THE FOLLOWING: GOAL
Support and respect the protection of 1 internationally proclaimed human rights. • SDG 17: Partnerships for Make sure that they are not complicit in the goals 2 human rights abuses.
The freedom of association and the 3 effective recognition of the right to collective bargaining. • SDG 5: Gender The elimination of all forms of forced 4 equality and compulsory labour. • SDG 8: Decent 5 The effective abolition of child labour. work and - economic growth The elimination of discrimination 6 in respect of employment and occupation.
Support a precautionary approach to • SDG 6: Clean 7 environmental challenges. water and sanitation
Undertake initiatives to promote • SDG 7: Affordable 8 and Clean Energy greater environmental responsibility. • SDG 12: Responsible Encourage the development and consumption and 9 diffusion of environmentally friendly production technologies. • SDG 13: Climate action
Work against corruption in all its forms, 10 including extortion and bribery.
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GRI CONTENT INDEX
Seagate uses Global Reporting Initiative (GRI) Sustainability Reporting Standards to promote a more consistent, standardized approach to its sustainability reporting.
Sustainable Datasphere, Seagate’s FY2018 global citizenship report, references the GRI Standards listed in the left-hand column of this GRI Content Index. Where the GRI Standard has not been used in full, we have marked the disclosure “partial” and explained the reasons for omission. For more information about the GRI and Reporting Standards visit www.globalreporting.org.
GRI GRI LEVEL OF REASON FOR LOCATION OMISSION AND STANDARD DISCLOSURE DISCLOSURE OTHER NOTES
102-1 Name of the Form 10-K Full organization page 12
102-2 Activities, brands, products, Form 10-K Full and services
102-3 Location of Form 10-K, Full headquarters Page 11
102-4 Location of Form 10-K, Full GRI 102: operations Page 11 GENERAL DISCLOSURES 2016 102-5 Ownership Form 10-K Full and legal form
102-6 Markets Form 10-K, Full served Page 11
102-7 Scale of the Page 53, Full organization Page 54
102-8 Information Page 53, on employees and Full Page 54 other workers
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GRI GRI LEVEL OF REASON FOR LOCATION OMISSION AND STANDARD DISCLOSURE DISCLOSURE OTHER NOTES
102-9 Supply chain Page 75-81 Full
102-10 Significant changes to the Page 6 Full organization and its supply chain 102-11 Precautionary Page 22 Full Principle or approach
102-12 External Page 4 Full initiatives
GRI 102: GENERAL 102-13 Membership Page 20 Full DISCLOSURES of associations 2016 102-14 Statement from senior Page 4 Full decision-maker
102-15 Key impacts, risks, and Form 10-K Full opportunities 102-16 Values, principles, Page 16 Full standards, and norms of behavior 102-17 Mechanisms for advice and Page 19 Full concerns about ethics
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GRI GRI LEVEL OF REASON FOR LOCATION OMISSION AND STANDARD DISCLOSURE DISCLOSURE OTHER NOTES Form 10-K 102-18 Governance page 104 Full structure Investors Page 102-22 Composition of the Board of highest governance Directors Full body and its Site committees 102-23 Chair of the Board of highest governance Directors Full body Site 102-24 Nominating and selecting the Governance Full highest governance Site body
102-25 Conflicts of Governance Full interest Site GRI 102: GENERAL DISCLOSURES 102-40 List of Throughout Full 2016 stakeholder groups Report
102-41 Collective bargaining Page 56 Full agreements
102-42 Identifying and selecting Page 101 Full stakeholders
102-43 Approach Page 7, to stakeholder Full Page 101 engagement
102-44 Key topics Throughout and concerns Full raised Report 102-45 Entities included in the Form 10-K Full consolidated page 113 financial statements
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GRI GRI LEVEL OF REASON FOR LOCATION OMISSION AND STANDARD DISCLOSURE DISCLOSURE OTHER NOTES
102-46 Defining report content and Page 6 Full topic Boundaries
102-47 List of Page 7-8 Full material topics
102-48 Restatements of Page 6 Full information
102-49 Changes in Page 6 Full reporting
102-50 Reporting Page 6 Full period
GRI 102: 102-51 Date of GENERAL Page 6 Full DISCLOSURES most recent report 2016
102-52 Reporting Page 6 Full cycle
102-53 Contact point for questions Page 6 Full regarding the report 102-54 Claims of reporting in Page 6-7 Full accordance with the GRI Standards
102-55 GRI content Page 88 Full index
102-56 External No assurance N/A N/A assurance sought.
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GRI GRI LEVEL OF REASON FOR LOCATION OMISSION AND STANDARD DISCLOSURE DISCLOSURE OTHER NOTES
103-1 Explanation of the material topic Page 6 Full and its Boundary
GRI 103: 103-2 The MANAGEMENT management Page 8 Full APPROACH approach and its 2016 components 103-3 Evaluation of the management Page 8 Full approach 201-1 Direct economic value Form 10-K Full generated and GRI 201: distributed ECONOMIC PERFORMANCE 201-2 Financial 2016 implications and Page 39, other risks and CDP Full opportunities due to Disclosure climate change
201-3 Defined benefit plan obligations and Form 10-K Full GRI 201: other retirement ECONOMIC plans PERFORMANCE 2016 205-1 Operations assessed for Page 16-17 Full risk related to corruption 206-1 Legal actions GRI 206: ANTI- for anticompetitive COMPETITIVE behavior, antitrust, Form 10-K Full BEHAVIOR 2016 and monopoly practices 301-1 Materials Life Cycle used by weight or Full Assessments volume GRI 301: MATERIALS 2016 301-3 Reclaimed products and their Page 27 Full packaging materials
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GRI GRI LEVEL OF REASON FOR LOCATION OMISSION AND STANDARD DISCLOSURE DISCLOSURE OTHER NOTES
302-1 Energy Page 36 - consumption within Full the organization 38
302-3 Energy Page 36 - GRI 302: ENERGY Full 2016 intensity 38
302-4 Reduction Page 36 - of energy Full 38 consumption
303-1 Water CDP withdrawal by Disclosure Full source GRI 303: WATER Page 50 2016 303-3 Water Page 26, recycled and Page 27, Full reused Page 50 304-1 Operational sites owned, leased, managed in, or adjacent to protected areas Page 34 Full and areas of high GRI 304: BIODIVERSITY biodiversity value outside protected areas 304-3 Habitats protected or Page 34 Full restored
CDP 305-1 Direct (Scope Disclosure Full 1) GHG emissions Page 39 - 45
305-2 Energy CDP GRI 305: EMISSIONS indirect (Scope 2) Disclosure Full GHG emissions Page 39 - 45
305-3 Other CDP indirect (Scope 3) Disclosure Full GHG emissions Page 39 - 45
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GRI GRI LEVEL OF REASON FOR LOCATION OMISSION AND STANDARD DISCLOSURE DISCLOSURE OTHER NOTES
305-4 GHG Page 39 - Full emission intensity 45 GRI 305: EMISSIONS 305-5 Reduction of Page 39 - Full GHG emissions 45
306-1 Water CDP discharge by quality Disclosure Full and destination Page 50
306-2 Waste by type and disposal Page 46-49 Full GRI 306: EFFLUENTS AND method WASTE 306-3 Significant Page 46 Full spills
306-4 Transport of Page 46 Full hazardous waste 307-1 Non- GRI 307: compliance with Page 30, ENVIRONMENTAL Full COMPLIANCE 2016 environmental laws Page 34 and regulations 308-1 New suppliers that were Page 75-81, screened using Full environmental Page 79 GRI 308: SUPPLIER criteria ENVIRONMENTAL ASSESSMENT 2016 308-2 Negative environmental impacts in the Page 80 Full supply chain and actions taken 401-1 New employee hires and Page 54 Full employee turnover GRI 401: EMPLOYMENT 401-2 Benefits 2016 provided to full-time employees that Page 60 Full are not provided to temporary or part- time employees
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GRI GRI LEVEL OF REASON FOR LOCATION OMISSION AND STANDARD DISCLOSURE DISCLOSURE OTHER NOTES
403-2 Types of Seagate does injury and rates of not break down GRI 403: injury, occupational injury rates by diseases, lost days, region or gender OCCUPATIONAL Page 59 Full HEALTH AND and absenteeism, as this is not SAFETY 2016 and number of material to how work-related we manage this fatalities risk.
404-1 Average hours of training per Page 63 Full year per employee 404-2 Programs for upgrading employee skills Page 63 Full GRI 404: and transition TRAINING AND assistance EDUCATION 2016 programs 404-3 Percentage of employees receiving regular Page 62 Full performance and career development reviews GRI 405: 405-1 Diversity of DIVERSITY AND EQUAL governance bodies Page 68 Full OPPORTUNITY and employees 407-1 Operations and suppliers GRI 407: FREEDOM OF in which the Page 56, right to freedom ASSOCIATION Page 79 Full AND of association COLLECTIVE and collective BARGAINING bargaining may be at risk 408-1 Operations and suppliers at GRI 408: CHILD Page 56-57, LABOR 2016 significant risk for Full incidents of child Page 79 labor 409-1 Operations GRI 409: and suppliers at Page 56, FORCED OR significant risk for Full COMPULSORY Page 78 LABOR 2016 incidents of forced or compulsory labor
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GRI GRI LEVEL OF REASON FOR LOCATION OMISSION AND STANDARD DISCLOSURE DISCLOSURE OTHER NOTES 412-1 Operations that have been subject to Page 55 Full human rights GRI 412: HUMAN RIGHTS reviews or impact ASSESSMENT assessments 2016 412-2 Employee training on human Page 56 Full rights policies or procedures 414-1 New suppliers that were Page 77 - Full GRI 414: screened using 78 SUPPLIER social criteria SOCIAL ASSESSMENT 414-2 Negative 2016 social impacts in Page 78 Full the supply chain and actions taken
415-1 Political GRI 415: PUBLIC Page 19 Full POLICY contributions
416-1 Assessment of the health and Page 23, safety impacts of Full product and service Page 24 categories 416-2 Incidents of noncompliance GRI 416: concerning the CUSTOMER health Page 6 Full HEALTH AND and safety impacts SAFETY 2016 of products and services 419-1 Non- compliance with laws and Form 10-K Full regulations in Page 34 the social and economic area
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ENVIRONMENT, HEALTH, AND SAFETY POLICY, APRIL 2018
Seagate is committed to providing • Promote a healthy lifestyle and safe workplaces, natural resource encourage employees to proactively conservation, and environmentally manage their personal health. responsible operations in the communities • Promote economic, environmental, where we do business. Our commitment and social sustainability, and pollution is underpinned by three values that prevention through continual process ensure our business sustainably delivers improvements and responsible value to our many stakeholders: Integrity, business practices. Innovation, and Inclusion. • Deliver operational resilience to Seagate requires all employees and effectively respond to potential contractors to work safely and integrate disruptions through measurable EHS Environment, Health, and Safety (EHS) performance improvements. procedures and practices into their daily work activities, projects, and programs. • Develop safe, efficient products and manufacturing processes by Seagate commits to: integrating EHS considerations into • Implement and continually improve all aspects of research, design, and comprehensive management development. systems ensuring compliance • Partner with suppliers, customers, with legal, regulatory, and other and stakeholders to publicly stakeholder requirements to which share best practices and EHS we subscribe. performance criteria. • Protect the safety and health of all • Support environmental, educational, those associated with our operations by health-related and other socially- identifying and implementing a hierarchy sustainable initiatives in the communities of controls to eliminate the sources of in which Seagate operates. incidents, injuries, and illnesses.
• Encourage employees at all levels to participate in occupational, health, and safety programs with an expectation that safe behavior is incorporated into Dave Mosley, all business activities. CEO
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Human Rights Policy, March 2018
As a global industry leader, Seagate Violations, such as physical abuse and/ welcomes the responsibility to also be or harassment or the threat of either, a “Global Citizen.” In partnership with are not tolerated. All employees will be employees, community members, allowed access to basic liberties while on customers, suppliers, and other Company premises. stakeholders, our commitment to Global We respect religious diversity and Citizenship includes support of the ten Principles of the United Nations Global employees may be provided with Compact within our sphere of influence. reasonable accommodations for religious These Principles address responsibility practices, upon request. Any requests for for the environment and other matters; reasonable accommodation should be however, most address the international directed to Site Human Resources. human rights and labor standards that Employment based on achievements. must be upheld to ensure the well-being Decisions about employees are based and dignity of each person. on achievements against job goals and/ We have developed policies to reinforce or standards and required competencies; our commitment to uphold these human decisions about applicants are made on rights and labor standards. We will abide qualifications against job requirements. by these policies or the local law in the In all employment actions, we prohibit countries where we operate, whichever discrimination based on age, race, sets a higher standard. Managers color, ancestry, ethnic or national origin, are responsible for upholding these physical or mental disability, medical Principles and for ensuring adherence condition, genetic information, marital to all company policies and guidelines in status, sex (which includes pregnancy their support. or perceived pregnancy, childbirth, breastfeeding, or related medical The following are some of Seagate’s basic conditions), gender identity, gender standards with regard to International expression, sexual orientation, perceived Human Rights and Labor Standards or actual religious creed or political (including the International Labor opinion, military and veteran status, Organization (ILO) core labor conventions*): taking or requesting statutorily protected Respectful treatment. Employees leave, taking or requesting a reasonable must respect and value each other and accommodation for a protected basis, or we hold everyone accountable for this. other basis protected by applicable law.
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Free to express opinions. Every restrictions of movement will be placed employee has a right to openly express upon employees during non-work hours. his or her opinion. In fact, we welcome Free to associate. We respect and and encourage ideas and input, including adhere to all applicable laws concerning notification of issues and concerns. the right of workers to organize in Fair compensation. We assess labor unions and engage in collective performance against job requirements bargaining and peaceful assembly, and and consider business conditions Seagate will not prohibit or impede and appropriate market comparisons employees exercising such rights. to deliver compensation. We will However, we believe maintaining an compensate employees with wages and open, unencumbered relationship benefits that meet or exceed the legally between Seagate employees and their required minimum without delay, and will managers is the most effective means of clearly communicate to all employees addressing work environment questions their compensation earned. and concerns.
Due process. We understand that an Free to choose employment. We employee may not meet performance will ensure that the overall terms of or conduct expectations. In such employment are voluntary. We will circumstances, the employee has a right not require employees to pay the to a fair process of review. Any resulting Company any remuneration or withhold disciplinary actions will be humane. an employee’s government-issued Deductions from wages as a disciplinary identification upon hire. We firmly prohibit measure will not be permitted. any form of human trafficking or slavery, and will ensure no forced, bonded Reasonable limitation of working (including debt bondage) or indentured hours. The hours worked by employees labor; involuntary or exploitative prison should not exceed 60 hours per work labor is used in the production of week, or be in excess of the maximum Seagate products. hours of daily labor set by local laws in the countries in which we operate. Employment at age 18 or higher. We will also provide employees with We strictly prohibit child labor and will at least one day off per every seven comply with all local minimum age laws days. Overtime will be voluntary and and requirements and/or set a minimum comply with all applicable overtime employment age of 18, whichever sets pay requirements. No unreasonable the higher standard.
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Intern Program. We provide internship experiential learning that compliments opportunities to college/polytechnic/ their education. Seagate does not university students, who meet our offer any type of apprentice program. minimum employment age of 18. This Additionally, Seagate does not hire program provides interns an opportunity student workers other than those that to undergo supervised practical meet the criteria for the intern program. development and gain real-world
Note: * Our labor standards in the Human Rights policy address the core ILO Labor Conventions No. 29, 87, 98, 100, 105, 111, 138, and 182.
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STAKEHOLDER ENGAGEMENT
Engaging with key stakeholders on relevant social and environmental issues is an important activity that provides Seagate with the insights and relationships needed to make well-informed business decisions.
Each year, we solicit feedback from our We meet regularly with investors, customers and business partners to governments, nongovernmental shape Global Citizenship program plans organizations, local communities, and and strategies. For example, through other civil society members to gather a variety of surveys and reporting perspectives about trends in business initiatives, Seagate shares detailed and society that may influence not information about the company’s only our business success, but also environmental performance and the extent to which we can contribute greenhouse gas emissions to help positively to sustainable development. the electronics industry improve its environmental footprint.
Industry Collaboration and Leadership One of our key industry collaborations Seagate also participates in the is with the RBA, a cooperative of UNGC, a strategic policy initiative leading electronics companies for businesses that are committed working to improve social, ethical, to aligning their operations and and environmental responsibility in strategies with 10 universally accepted the global electronics supply chain. principles around human rights, labor, Seagate was a founding member of environment, and anti-corruption. the RBA (formerly EICC) in 2004. We Seagate executives have participated adopted the RBA Code in 2007 and in UNGC Leaders Summits in the past continue to maintain full and active to enhance the role of responsible membership in this organization. business and investment.
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Global Citizenship Stakeholder Inquiry Process
Seagate has an established process range from environmental performance, to address specific stakeholder global product stewardship, and product safety citizenship issues or requests. A subset of to labor standards, fair trade, supply chain, the Global Citizenship team manages this and more. process. The types of information provided
Global Citizenship Issues/Requests Team Representative
Product Stewardship Environmental Environmental Health & Safety Health & Safety Medical Program
Material Use Vendor Labor Materials Vendor Standards
Media Inquiries Corporate NGO Concerns Communications Philanthropy Issue has well- Initial Seagate Global Citizenship Respond to defined response Point of Contact Team Coordinator YES stakeholder procedure in place Labor Questions
Employment Human Resources NO Standards
Global Citizenship Sarbanes Oxley Draft Response Committee Convenes NYSE Requirements Finance Financial Assurance
Company Ethics Product Liability Legal Contract Questions
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ACRONYMS
3TG (“Conflict Minerals”) Tungsten, Tin, Tantalum, and Gold BCMS Business Continuity Management System BCRI Business Continuity Readiness Index CAS Chemical Abstract Service CDP Carbon Disclosure Project CEO Chief Executive Officer
CO2 Carbon Dioxide
CO2e Carbon Dioxide Equivalent CSOP Corporate Standard Operating Procedures CY Calendar Year DRC Democratic Republic of the Congo EB Exabyte EMEA Europe, Middle East, Africa EPEAT Electronic Product Environmental Assessment Tool FMD Full Material Disclosure FY Fiscal Year GHG Greenhouse Gas GRI Global Reporting Initiative HDD Hard Disk Drive ICT Information and Communication Technology ILO International Labor Organization ISE Instant Secure Erase ISO International Organization for Standardization LCA Life Cycle Assessment MCI Material Circularity Indicator MWh Megawatt Hour NGO Nongovernmental Organization OEM Original Equipment Manufacturer
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ACRONYMS
OHSAS Occupational Health and Safety Assessment Series OSHA Occupational Safety and Health Administration PLC Public Limited Company RBA Responsible Business Alliance REACH Registration, Evaluation, Authorization and Restriction of Chemicals RMA Responsible Minerals Initiative RoHS Restriction of Hazardous Substances SAQ Self-Assessment Questionnaire SEC Securities and Exchange Commision STEM Science, Technology, Engineering, Math TCO Total Cost of Ownership TSDF Treatment, Storage, and Disposal Facility U.S. United States (of America) UK United Kingdom UNGC United Nations Global Compact VAP Validated Audit Program
BUSINESS CONTINUITY THANK YOU.