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1、 2023 Environmental,Social,and Governance ReportAbout This ReportSynopsys empowers technology innovators with the industrys most comprehensive and trusted silicon to systems design solutions,helping transform the way we live and work.At the same time,we take responsibility for making our operations,

2、products,and ecosystem more sustainable,driving strategies for efficiency and resiliency that benefit our business,stakeholders,communities,and the world.This Synopsys 2023 Environmental,Social,and Governance Report covers our ESG performance for our fiscal year 2023,which began November 1,2022,and

3、ended October 31,2023.The exception includes our social impact data(calendar year 2023)and other instances as noted.We considered the recommended disclosures in the Software&Information Technology(IT)Services Sustainability Accounting Standard published by the Sustainability Accounting Standards Boa

4、rd(SASB)when determining the content of this report.Our reporting is intended to align with the Task Force on Climate-related Financial Disclosures(TCFD)and the United Nations Sustainable Development Goals(UN SDGs),and has been prepared with reference to the 2021 Global Reporting Initiative(GRI)Stan

5、dards.Synopsys also reports separately to CDP as a part of our disclosure efforts.Synopsys employees around the world submitted photographs for potential inclusion in this years report.Photos included in the report are credited to the corresponding Synopsys employee.Thank you to our multitalented em

6、ployees for submitting these fantastic photos.Distributing This Report We promote our report through:XProminent disclosure on our website XTargeted employee communications XOutreach to current and potential stockholders XOutreach to other stakeholders with whom we have built relationships XOur socia

7、l channelsWe welcome feedback on this report and our performance.Please send comments andsuggestions to Photo Credit:Gayane Markosyan,Synopsys Employee,ArmeniaThis 2023 Environmental,Social,and Governance Report contains forward-looking statements pursuant to the safe harbor provisions of Section 21

8、E of the Securities Exchange Act of 1934 and other federal securities laws,and actual results could differ significantly.These statements are based on managements current opinions,expectations,beliefs,plans,objectives,assumptions,or projections regarding future events or results,including,but not li

9、mited to,our environmental,social,and governance(ESG)strategies,initiatives,goals,and commitments;our business plans and strategy;our technology,products,and services;ESG risks and opportunities;and our stakeholder engagement efforts.Risk factors that could cause actual results to differ are set for

10、th in the“Risk Factors”section in our most recent Annual Report on Form 10-K and subsequent 10-Q filings.Any references to“material”in this report do not correspond to the concept of materiality used by the U.S.Securities and Exchange Commission(SEC).We currently do not believe that Synopsys goals,i

11、nitiatives,or risks are material for SEC disclosure purposes,except to the extent referenced in our Annual Report on Form 10-K and subsequent 10-Q filings.This report also contains human capital measures or objectives that may be different from or are in addition to the human capital measures or obj

12、ectives that Synopsys is required to disclose in our SEC filings.For a discussion on human capital measures or objectives that Synopsys focuses on in managing our business,please see the“Human Capital Resources”section in our most recent Annual Report on Form10-K.2Table of ContentsPhoto Credit:Thari

13、ndu Lakkhana,Synopsys Employee,Sri LankaCEO Letter4About Synopsys6Living Our Values,Leading with Vision7Our SMART FUTURE ESG Strategy9Product Portfolio and Innovation10ESG at Synopsys12How We Manage ESG132023 ESG Highlights15ESG Ambitions16Environment17Our Influence Through Innovation19Our Impact Th

14、rough Operations21Social25Our People26Workforce Development forthe Future31Social Impact33Governance38Corporate Governance39Integrity,Ethics,and Business Conduct41Business Continuity and Resiliency42Cybersecurity and Privacy43Supply Chain Engagement45Political Activities and Contributions46Appendice

15、s47GHG Emissions Data Table48Diversity Metrics Data Table49TCFD Index51SASB,GRI,UN SDGs Data Table583CEO Letter Taking the helm as CEO in January 2024 after more than two decades at Synopsys has been a profound honor.Synopsys has long been a catalyst for semiconductor innovation,developing the missi

16、on critical engineering software and solutions our customers need to design their products.Icant begin to express my gratitude for the faith shown in me to steer this remarkable company into thefuture.Working alongside Executive Chair and Founder Aart de Geus for all these years has been transformat

17、ive.His tireless dedication to Synopsys and vision for a better world have left an indelible impression on me.Since its founding in 1986,Synopsys has been a company that cares deeply about its people,the environment,and the communities in which we operate.I am particularly proud of the diverse backg

18、rounds and viewpoints that our more than 20,000 employees across 30-plus countries bring to the company.These are exciting times as semiconductors revolutionize industries,changing how we work,communicate,and live.The semiconductor industry is expected to double in market value to one trillion dolla

19、rs or more by the end of the decade,driven by the rise of artificial intelligence(AI),silicon proliferation,and software-defined systems.These trends fuel a new era of pervasive intelligence,where technology is seamlessly integrated into our lives.With it comes mounting complexity and cost,and great

20、er compute,energy,and design challenges for the technology industry.Synopsys is uniquely positioned to address these challenges for our customers,which increasingly include new-to-silicon systems companies like hyperscalers and automotive companies.With more than 90%of advanced chip development usin

21、g Synopsys design automation and IP solutions,our products maximize the research and development(R&D)capability and productivity of companies designing silicon chips and systems across a wide range of industries from mobile to data centers,to automotive and more.At Synopsys,our mission is to empower

22、 technology innovators everywhere with the industrys most comprehensive and trusted silicon to systems solutions that make pervasive intelligence possible.The potential and the need is enormous.Pervasive intelligence can unlock solutions to societal challenges like improving healthcare outcomes,tack

23、ling climate change,and reducing vehicle accidents.We know that with great potential comes great responsibility.In an age where AI increasingly permeates every facet of our lives,the pace of innovation and change risks outstripping certain segments of society being able to adapt.Governments and civi

24、l society are grappling to keep pace,leaving a void for industry leaders like Synopsys to fill.Its not just about progress;its about ensuring that progress is guided by principles of ethics and sustainability.42023 ESG ReportCEO letterAbout SynopsysESG at SynopsysEnvironmentSocialGovernanceAppendice

25、sPhoto Credit:Mike Achtelik,SynopsysEmployee,GermanyThat is why I am incredibly proud of our commitment to positive change,as outlined in our Smart Future strategy and in this report.Our strategy is clear and simple:optimize our own operational impact on the world and positively influence others to

26、do the same.In 2023 we made important progress toward reaching our ESG goals,including:Validation of our greenhouse gas(GHG)emissions reduction targets by the Science Based Targets initiative(SBTi).Synopsys committed to four near-term,science-based targets aligned with limiting global warming to 1.5

27、C above preindustrial levels.We will report annually on our progress.Recognition by CDP for our performance on climate action,with an A-leadership score for demonstrating best practices in strategy,governance,and oversight of climate issues.Strengthened our workplace culture of innovation and inclus

28、ion that offers robust opportunities for engagement,learning,and growth,as affirmed by 89%of employees recommending Synopsys as a great place to work.Synopsys also ranked 13th on Comparablys annual Best Global Company Culture list.Our work is far from done.In 2024,our ESG ambitions must build on our

29、 progress.We remain steadfast in enabling our customers to innovate for a greener,more sustainable world,and we continue to act in alignment with climate science to reduce our carbon footprint.Empowerment of our global talent remains a top priority as we continue to foster a culture of innovation,in

30、clusion,and integrity.As we continue this journey together to create a smarter future,we remember our whythe reason we do what we do.Synopsys exists to power innovation today that ignites the ingenuity of tomorrow.We will continue to innovate,to push boundaries,and to lead with purpose and integrity

31、.Together with our customers and partners,we have the power to create a brighter future for generations to come.Sincerely,Sassine Ghazi,President and Chief Executive Officer 52023 ESG ReportCEO letterAbout SynopsysESG at SynopsysEnvironmentSocialGovernanceAppendicesAbout Synopsys A new era of pervas

32、ive intelligence is upon us,driven by three major technology trends:artificial intelligence,silicon proliferation,and software-defined systems.Synopsys has laid the foundations for these trends through our silicon to systems design solutions,becoming a trusted partner of technology innovators worldw

33、ide.We partner closely with semiconductor and systems customers across a wide range of vertical markets to maximize their R&D capability and productivity,powering innovation today that ignites the ingenuity of tomorrow.Building on our leading technologies,companies around the world are delivering in

34、novations with wide-reaching benefits.Photo Credit:Nancy Wall,Synopsys Employee,United States6CEO letterAbout SynopsysLiving Our Values,Leading with VisionOur SMART FUTURE ESG StrategyProduct Portfolio and InnovationESG at SynopsysEnvironmentSocialGovernanceAppendices2023 ESG ReportLiving Our Values

35、,Leading with VisionFor more than 35 years,Synopsys culture has grown from the foundation of our core valuesintegrity,execution excellence,leadership,and passionto our innovation mindset,which spurs us to continually reach higher.We catalyze the impossible by giving innovators the tools to overcome

36、their challenges and deliver their solutions.We deliver to our customers an end-to-end solution for energy-efficient system-on-chips(SoCs)across design,verification,and IP products,as well as yield-management software that helps integrated circuit(IC)manufacturers achieve and maintain high semicondu

37、ctor yields,and helps reduce environmental impact of the manufacturing process.Click here for an in-depth look at Synopsys brand vision and portfolio of products and services.Photo Credit:Bella Park,Synopsys Employee,South Korea7CEO letterAbout SynopsysLiving Our Values,Leading with VisionOur SMART

38、FUTURE ESG StrategyProduct Portfolio and InnovationESG at SynopsysEnvironmentSocialGovernanceAppendices2023 ESG ReportPhoto Credit:Kiran Maddhula,Synopsys Employee,India2023 by the Numbers Synopsys is the leading silicon to systems design solutions company,delivering solutions and services that enab

39、le the era of pervasive intelligenceAI that accelerates everythingIndustry leading AI-driven electronic design automation(EDA)workflow optimization and data analytics solutions along with breakthrough generative AI capabilities boost engineering productivity and accelerate innovation across all stag

40、es of chip development.Solutions to enable silicon proliferation As the world becomes more connected,we offer world-leading EDA and IP solutions for designing and verifying advanced silicon chips.Software-defined systems that drive differentiationHardware assisted verification and virtual prototypin

41、g solutions enable a holistic approach to complex systems design and validation that starts with system needs and then builds the software and silicon to meet them.122 global offices3,339 active patents20,300 employees globally$5.32B annual revenue33%of revenue devoted to R&D80%of employees are engi

42、neers1In May 2024,Synopsys entered into an agreement to sell its Software Integrity business.This business has been presented as a discontinued operation in Synopsys consolidated financial statements beginning in the second quarter of fiscal year 2024,and fiscal year 2023 revenue presented herein is

43、 on a continuing operations basis only.8CEO letterAbout SynopsysLiving Our Values,Leading with VisionOur SMART FUTURE ESG StrategyProduct Portfolio and InnovationESG at SynopsysEnvironmentSocialGovernanceAppendices2023 ESG ReportOur SMART FUTURE ESG StrategySynopsys is at the forefront of a revoluti

44、on.Our design automation tools and intellectual property(IP)are the backbone of billions of smart and connected devices that are ushering in a new era of pervasive intelligence.This exciting new world comes with immense opportunities,but also significant responsibilities.Our Smart Future strategy pr

45、ovides a focus and structure for how we manage our own operational impact and influence others around us to create a better world.Were not only reducing our own environmental footprint,but also leveraging our expertise,resources,and problem-solving skills to inspire positive change throughout our ec

46、osystemworking with our communities,customers,partners,and suppliers to create a more sustainable future.Our technology is enabling innovations that shape a smarter world,from low-power computing to enhancing human health and well-being,to bringing safety and security to autonomous vehicles.Our appr

47、oach prioritizes both the needs of our business and those of its stakeholders,which include our stockholders,customers,employees,partners,and local communities.This contributes to Synopsys success while simultaneously driving meaningful progress on environmental and social issues.The positive impact

48、 extends beyond our company,reaching into the communities where we operate and fostering strong,lasting partnerships.9CEO letterAbout SynopsysLiving Our Values,Leading with VisionOur SMART FUTURE ESG StrategyProduct Portfolio and InnovationESG at SynopsysEnvironmentSocialGovernanceAppendices2023 ESG

49、 ReportSoftware thats powering the digital transformationVirtually all companies differentiate via softwareAnalytics that are uncovering new insightsAnalytics point the way,including toward building and maintaining products more effectivelyChips that are differentiating the experienceAdvanced chips

50、massive processing power is bringing new software inventions to lifeAI thats accelerating everythingAI enables faster and more efficient chip designsProduct Portfolio and InnovationIn todays era of pervasive intelligence,innovation is ignited by chip and software advances driven by a fusion of AI,an

51、alytics,and massive compute resources.To enable that ecosystem,the semiconductor industry is combining the traditional Moores law focus on dimensional scale with a new focus on systemic optimizationusing AI and machine learning to drive performance by optimizing chip architecture and construction at

52、 the silicon level.At the same time,designers are leveraging software to improve energy efficiency and address security vulnerabilities at each stage of chip design.As the worlds leading silicon to systems design solutions company,weve become a trusted partner for technology innovators everywhere,of

53、fering comprehensive and trusted solutions for chip design,verification,and IP integration that empower our customers to drive advancements across industries.We are constantly investing in the future:securing the worlds best talent,devoting 33%of annual revenue to research and development,and collab

54、orating with academic research partners to bring new technologies to light.From AI,multi-die designs,and electronics digital twin technologies to energy-efficient SoCs and beyond,were pioneering technologies with the potential to drive positive impact in our world.Photo Credit:Ramya B K,Synopsys Emp

55、loyee,IndiaSynopsys is an innovator in technologies shaping our world10CEO letterAbout SynopsysLiving Our Values,Leading with VisionOur SMART FUTURE ESG StrategyProduct Portfolio and InnovationESG at SynopsysEnvironmentSocialGovernanceAppendices2023 ESG Report2023 Product Innovation Highlights In 20

56、23,we followed our innovation imperative in all of our key product introductions and in our continued commitments to assuring trust and security.We remain deeply committed to helping our customers design more sustainable products,minimizing power consumption while meeting their growth needs.Exponent

57、ial Productivity and Efficiency Gains Synopsys.ai Copilot is the result of a strategic collaboration with Microsoft Azure OpenAI Service that brings the power of GenAI to help engineering teams accelerate time to market and address systemic complexity through the power of conversational intelligence

58、.Accelerating Systems Innovation Synopsys expanding portfolio of hardware-assisted verification including the newest ZeBu Server5 system and virtual prototyping solutions provide systems companies with the performance and capacity required to verify and validate highly efficient,customized silicon.E

59、nabling Innovative Chip Design Our broad portfolio of semiconductor IP provides the building blocks for chips with specific design requirements,from secure chiplets in energy-efficient multi-die designs to safety-certified devices in automotive and industrial applications.Safe and Responsible AI-Ass

60、isted DesignUnderpinning our investments,research,and collaborations is a persistent focus on building AI systems that are safe and trustworthy.Our intention is to promote the responsible deployment of AI technologies in the creation of new silicon-based applications.For additional product informati

61、on,see the Our Influence Through Innovation section of this report and our website.11CEO letterAbout SynopsysLiving Our Values,Leading with VisionOur SMART FUTURE ESG StrategyProduct Portfolio and InnovationESG at SynopsysEnvironmentSocialGovernanceAppendices2023 ESG ReportESG at Synopsys Synopsys r

62、ecognizes that as we drive innovation and business success in the era of pervasive intelligence,we are simultaneously responsible for the sustainability of our operations,products,and ecosystem.We maintain a robust governance structure for our ESG efforts,gauging and acting on our highest priority E

63、SG impacts,business risks,and opportunities to create positive impact for our stockholders,customers,employees,partners,and local communities.Photo Credit:Sona Chachan,Synopsys Employee,India12CEO letterAbout SynopsysESG at SynopsysHow We Manage ESG2023 ESG HighlightsESG AmbitionsEnvironmentSocialGo

64、vernanceAppendices2023 ESG ReportHow We Manage ESGOur Smart Future strategy is overseen by our ESG Management Team,with support from the ESG Leadership Committee.The ESG Leadership Committee includes executives from across our business who are tasked with driving Synopsys ESG performance.The committ

65、ee ensures implementation of our environmental,social,and governance priorities in their respective areas of responsibility.Except to the extent delegated to other committees,the Synopsys Boards Corporate Governance and Nominating(CGN)Committee reviews,assesses,and recommends to the Board as necessa

66、ry ESG policies and practices,priority and risk assessments,risk management measures,and public disclosures,as well as related initiatives,goals,and progress toward goals.The ESG Management Team provides updates to the CGN Committee as well as the full Board of Directors.These updates inform and edu

67、cate the Board on topics such as Synopsys GHG emissions reduction strategy and targets and ESG-focused regulatory requirements and proposals worldwide.We work continually to build greater connection between stakeholders across the business and integrate ESG more strategically into our corporate prog

68、rams and processes.ESG Governance StructureBoard of DirectorsCorporate Governance and Nominating CommitteeESG Management Team ESG Leadership CommitteeInformation TechnologyPeople Finance Global Marketing and CommunicationsInvestor Relations Places Hardware OperationsLegal Product Marketing Safety an

69、d Resiliency Social Impact 13CEO letterAbout SynopsysESG at SynopsysHow We Manage ESG2023 ESG HighlightsESG AmbitionsEnvironmentSocialGovernanceAppendices2023 ESG ReportMateriality Assessment andPriority Topic Areas Synopsys conducted our first materiality assessment in 2018 to:X Identify key ESG im

70、pacts throughout our value chain X Evaluate the significance of individual ESG impacts on our company,stakeholders,and planet X Prioritize key impacts to inform mitigation strategies and reportingThrough this process,we identified six priority areas to provide a framework for operationalizing our re

71、sponse:human capital management,innovation,cybersecurity and data privacy,corporate governance and ethics,climate change and GHG emissions,and supply chain management.For a full list of priorities,see GRI 3-2:List of material topics.We review our priorities annually,and made our last adjustments in

72、2021.In fall 2023,we began an exercise to refresh our materiality assessment using a double-materiality lens,gauging two types of sustainability-related impacts:our business activities impacts on people and/or the environment and the financial impacts of sustainability-related risks and opportunitie

73、s on our business performance.We will provide an update on this process in our 2024 ESG Report.Engaging Key StakeholdersSynopsys engages with our key stakeholders on an ongoing basis to gather their perspectives on our ESG strategy,policies,and programs,and help guide our Smart Future priorities and

74、 practices.Stockholders We proactively communicate with stockholders to provide regular updates on our programs and progress,understand their ESG interests and expectations,and respond to their questions.Suppliers We drive responsible business practices by expecting all our suppliers to operate in a

75、 manner consistent with our Code of Ethics and Business Conduct,and for direct suppliers to follow our Supplier Code of Conduct.Industry Partners Our collaborations and industry partnerships help drive sustainability solutions across our value chain.Employees We empower our employees to innovate,col

76、laborate,and explore ways to continuously learn and grow,including leading initiatives aimed at advancing our ESG strategy.We support this journey with an inclusive workplace where everyone can speak up and be heard,no matter where they sit in the organization.Customers We partner with our customers

77、 to advance shared ESG priorities and best practices in creating silicon to systems design solutions.1414CEO letterAbout SynopsysESG at SynopsysHow We Manage ESG2023 ESG HighlightsESG AmbitionsEnvironmentSocialGovernanceAppendices2023 ESG Report25.4%of our global workforce is women1.5C GHG emissions

78、 targets validated by SBTi 5.8%of our U.S.workforce identifies as Black,Hispanic and Latinx,or IndigenousA-CDP Climate Change score received94%of our employees participated in annual engagement survey43office locations in 20 countries participated in Season of Service86%of managers completed Inclusi

79、ve Leader training2023 ESG HighlightsPhoto Credit:Lianna Balayan,Synopsys Employee,Armenia15CEO letterAbout SynopsysESG at SynopsysHow We Manage ESG2023 ESG HighlightsESG AmbitionsEnvironmentSocialGovernanceAppendices2023 ESG ReportEnable customers to innovate for a greener worldReduce our GHG emiss

80、ions in line withour SBTi validated targetsEmpower global talent by fostering a culture ofinnovation,inclusion,and respectEnsure security across our enterprise and help our customers design trusted siliconBuild a resilient and responsible supply chainGenerate positive impact in the communities where

81、 we workESG AmbitionsPhoto Credit:Mary Ann White,Synopsys Employee,United States1616CEO letterAbout SynopsysESG at SynopsysHow We Manage ESG2023 ESG HighlightsESG AmbitionsEnvironmentSocialGovernanceAppendices2023 ESG ReportEnvironment Synopsys recognizes the need for transformative action to protec

82、t our environment and is working to drive positive change both within our operations and through influence with our customers,industry,and suppliers.Through our technologies,were empowering our customers to develop more innovative and energy-efficient chips.In our industry and supply chain,were work

83、ing to promote greener practices.Also,through a continual focus on efficiency and optimization,were reducing our operational impactsdoing our part for people,communities,and the planet while supporting business success.Photo Credit:Annaraja Lakshmanan,Synopsys Employee,India17CEO letterAbout Synopsy

84、sESG at SynopsysOur Influence Through InnovationOur Impact Through OperationsEnvironmentSocialGovernanceAppendices2023 ESG ReportEnvironmental Strategy and Management ApproachOur ESG Management Team propels Synopsys environmental strategy and guides its execution,with input and direction from the C-

85、Suite-led Climate Action Steering Committee and cross-functional ESG Leadership Committee,and in alignment with the expectations of our key stakeholders.The team reviews performance against Synopsys goals and adjusts our approach as needed.Across Synopsys operations,we focus on continuously improvin

86、g data management,enhancing our energy use reporting,and taking specific decarbonization actions to meet our emissions reduction targets.Examples of how we are mitigating the climate impacts of our operations and supply chain:X Prioritize environmental performance certifications in all new building

87、construction X Incorporate sustainability features into the operation of our facilities X Pursue renewable energy sourcing opportunities for our offices and data centers X Prioritize data center vendors that can support clean and renewable energy X Work to mitigate global electronic waste(e-waste)X

88、Drive emissions reductions in science-based target areas such as use of sold products,employee commuting,and business travel X Leverage our contracting and procurement processes to seek vendors that demonstrate a strong commitment to sustainability X Engage with industry collaborations such as CEBA,

89、the Sustainability Roundtable,and the Semiconductor Climate ConsortiumExamples of how we are extending our sustainability impact to our customers:X Enable low power design in SoC architectures X Optimize energy efficiency and cooling of high-performance computing and data center applications X Help

90、AI chip designers meet or exceed performance and energy goals and accelerate time to market X Continue to innovate for our next generation hardware-assisted verification products to enable higher verification task efficiencyIn 2023,Synopsys received SBTi validation of our GHG emissions reduction tar

91、gets.Photo Credit:Sam Kurutz,Synopsys Employee,United States 18CEO letterAbout SynopsysESG at SynopsysOur Influence Through InnovationOur Impact Through OperationsEnvironmentSocialGovernanceAppendices2023 ESG ReportOur Influence Through InnovationWe live in a time of unprecedented acceleration in ad

92、vanced digital technologies.Explosive growth of AI and machine learning is increasing computational power demands.Hyper-scale computing,automotive,mobile,medical,and other specialized applications are driving a shift toward chip architectures tailored to their unique performance needs.Electronics di

93、gital twin technology provides virtual models to explore,analyze,and optimize chip designs before physical prototypes become available.From silicon to systems,Synopsys is enabling these shifts with the most advanced design solutions to enable greater speed,power,reliability,and security.At the same

94、time,we recognize that as the technology industry pursues a thousandfold improvement in computational power,we must also pursue a thousandfold improvement in energy efficiency.Exponential consumption trends are currently far outpacing growth in the worlds energy generating capacity.Synopsys drives m

95、aximum energy savings in the semiconductor ecosystem through solutions that optimize energy efficiency in the design and use of chips,systems,and software,along with solutions that cut energy use,water use,and waste in semiconductor manufacturing.Photo Credit:Li Liu,Synopsys Employee,ChinaDriving En

96、ergy Efficiency Through System DesignEnergy-efficient SoCs are a critical need in all major markets,from applications for high-performance computing(HPC),AI,data centers,networking,and storage to devices for mobile,wearables,IoT,aerospace,and automotive applications.Synopsys solutions drive signific

97、ant improvements in compute power per watt across every phase of the SoC design process.Software:Our solutions enable profiling the software workload for power consumption to enable energy-efficient SoCs.Architecture:Our solutions drive efficiency via user-driven exploration of power management stra

98、tegies,as well as macro-architectural tradeoffs for power-performance and intelligent IP integration.Logic Design:Our solutions achieve power savings through micro-architectural tradeoffs and by using various tool-guided techniques for operation efficiency improvements.Implementation:Our solutions a

99、pply automatic optimization in various power-related areas,helping designers maximize power,performance,and area(PPA)results for their chips.Signoff:Our solutions center on highly accurate signoff analysis for power consumption,along with dynamic and leakage power recovery that employs precise engin

100、eering change order(ECO)changes.Verification:Our solutions enable comprehensive functional verification of complex SOCs using advanced power management techniques by leveraging the Unified Power Format(UPF).19CEO letterAbout SynopsysESG at SynopsysOur Influence Through InnovationOur Impact Through O

101、perationsEnvironmentSocialGovernanceAppendices2023 ESG ReportImproving Efficiency for Chip ManufacturersProcessing a single wafer in a semiconductor fab can require hundreds of process steps and take more than a month,after which another month is consumed in the assembly,testing,and packaging steps

102、necessary to deliver a finalized chip to market.These processes generate petabytes of data that need to be analyzed quickly and accurately to optimally control high-volume manufacturing,minimize process excursions,and produce the best possible yield using the minimum of energy and water resources.Sy

103、nopsys addresses these challenges for our customers with software solutions spanning chip design,verification,mask synthesis,process modeling,on-chip testing and monitoring,and AI/ML-based data analytics.Learn more about Synopsys industry-leading end-to-end solutions for energy-efficient SoC design.

104、2020CEO letterAbout SynopsysESG at SynopsysOur Influence Through InnovationOur Impact Through OperationsEnvironmentSocialGovernanceAppendices2023 ESG ReportOur Impact Through OperationsSynopsys is a growing company,and we are continually working to reduce our own operational impact by looking for ef

105、ficiencies and optimization across the company.We have set ambitious science-based GHG emissions reduction targets,prioritize the use of renewable energy,form partnerships to help reduce our carbon footprint,and implement office location strategies that advance our sustainability and cost initiative

106、s.These efforts not only help us attract and retain talent and serve our customers better,but also demonstrate our commitment to environmental responsibility.Climate Resilience:Mitigating Risks,Identifying OpportunitiesSynopsys undertakes periodic assessments to review climate risks and opportunitie

107、s relevant to our business.To date,these assessments have identified no material climate risks to our business,strategy,or financial planning related to either the transitional impacts of climate change(carbon pricing,reputation,legislation)or physical risks from climate-related events(e.g.,wildfire

108、s,storms,floods).Nevertheless,we are committed to taking responsibility for our carbon footprint.We understand the carbon intensity of our operations and supply chain,and we work to mitigate associated impacts via new strategies and technologies.We report on our climate-related practices using three

109、 leading assessment frameworks:X The CDP Climate Change questionnaire,where we annually disclose our potential climate impacts,risks,and opportunities X EcoVadis assessments,to evaluate our sustainability practices and make data accessible to our customers X The Task Force on Climate-related Financi

110、al Disclosures(TCFD),to provide investors with information on climate-related risks pertaining to our products,operations,and supply chain Following a multi-step review process,our near-term targets for reducing GHG emissions received SBTi validation in 2023,confirming Synopsys is following best pra

111、ctices in our emissions reduction targeting,in line with climate science.Additionally,we are preparing for compliance with new climate disclosure requirements applicable to Synopsys.In 2023,we undertook a value chain exercise to assess our impacts,risks,and opportunities;reviewed our GHG emissions p

112、rocesses and controls;built out our response to Californias Voluntary Carbon Market Disclosure;and conducted a mapping of our compliance strategy for the EUs Corporate Sustainability Reporting Directive(CSRD).See our TCFD Index for more details on Synopsys climate-related risks,opportunities,and str

113、ategies.Material risks are also reported in our Annual Report on Form 10-K.Photo Credit:Nicole Chmura,Synopsys Employee,United States2121CEO letterAbout SynopsysESG at SynopsysOur Influence Through InnovationOur Impact Through OperationsEnvironmentSocialGovernanceAppendices2023 ESG ReportPhoto Credi

114、t:Priyanka Patil,Synopsys Employee,IndiaBaseline year:2019 This represents suppliers with validated SBTi targets.Science-Based GHG Emissions Reduction In 2023,Synopsys achieved validation of our GHG emissions reduction targets from the Science Based Targets initiative(SBTi),the foremost certifying b

115、ody in GHG reduction target setting and validation.SBTi considers targets science-based if they align with climate science and the goal of limiting global warming to 1.5C above pre-industrial levels.Meeting SBTi criteria,Synopsys is now committed to four near-term science-based targets and has devel

116、oped a management structure and initiatives to enable our teams,drive improvements,and report on progress toward our targets.Beginning with this report,we are reporting that progress annually.We plan to review our targets in 2027 based on the latest SBTi criteria and guidance.If a significant change

117、 to our business occurs before 2027,we will review our targets accordingly.Progress Toward Science-Based Targets See our GHG Emissions Data Table for details.55%reduction in absolute Scope 1 and2 GHG emissions by 203262%reduction in Scope 3 GHG emissions from employee commuting andbusiness travel,pe

118、r employee,by 203262%reduction in Scope 3 GHG emissions from use of sold products,per lifetime verification task,by 203245%of our suppliers for purchased goods and services and capital goods,based on spend,will maintain their own science-based targets,by 2027SBTi Target50%82%36%Progress Toward GoalG

119、oal55%62%62%45%2%Our progress towards meeting Synopsys SBTi targets is generally measured against our 2019 GHG emissions.Since 2019,Synopsys has experienced significant operational growth,with a 58%increase in revenue,a 46%increase in our employee base,and a 20%overall increase in electricity consum

120、ption.Despite this significant growth,our Scope 1 and Scope 2 emissions are 1%lower than our 2019 base year and we are making meaningful progress towards our SBTi emissions reduction targets,as shown in the chart below.We expect that our progress will vary from year by year until the target date.For

121、 example,due to a combination of business growth and the increasing power demands of advanced computing,progress towards our Scope 1 and Scope 2 emissions reduction targets may be minimal or even negative over the next few years until renewable power facilities associated with our power purchase agr

122、eements come online.We will continue to take specific decarbonization actions until and after our target date.22CEO letterAbout SynopsysESG at SynopsysOur Influence Through InnovationOur Impact Through OperationsEnvironmentSocialGovernanceAppendices2023 ESG ReportCarbonNeutral Company CertificationI

123、n 2023,we achieved CarbonNeutral company certification across our global operations for the fifth consecutive year through a portfolio of high-quality,verifiable energy attribute certificates(EACs)and offsets.The purchase of EACs and offsets specifically for the CarbonNeutral company certification a

124、re not accounted for in our emissions inventory,including progress toward our emissions reduction target.For more information,see our California Voluntary Carbon Market Disclosure.E-waste We contract with an IT asset disposition(ITAD)vendor certified to the Responsible Recycling(R2)standard to dispo

125、se of all non-functional and unrepairable electronics responsibly and provide us with an annual impact summary.In 2023,91,451 pounds of Synopsys e-waste was refurbished and reused or recycled.Renewable EnergyBoosting our use of renewable energy is an integral part of Synopsys science-based emissions

126、 reduction strategy,and we continued making gains in 2023.In Texas,our virtual power purchase agreement(VPPA)with Azure Sky Wind generated approximately 49,000 MWhs of clean energy,mitigating 50%of energy demand in our North American operations for the year.In Bangalore,India,a power purchase agreem

127、ent(PPA)provides our offices an annual 3,100 MWhs of wind capacity.In California,our headquarters offices source clean,renewable energy through a Community Choice Aggregation(CCA)program.In addition to our offices,several of our global data center locations are supported with clean renewable energy.

128、In 2023,Synopsys joined the Green Power Partnership,a project of the U.S.Environmental Protection Agency(EPA),which recognized Synopsys as a leader in green power development and consumption for our participation in the Azure Sky Wind VPPA and other U.S.renewable energy programs.As markets allow,we

129、plan to continue to explore new procurement opportunities across our operating regions,considering CCAs,PPAs,VPPAs,and utility programs that meet our standard of being as local as possible to the source of consumption.Prioritizing Data Center EfficiencyIn 2023,we made significant progress on a multi

130、-year strategy to improve Synopsys data center sustainability through partnerships with sustainability-focused colocation providers and optimization of our on-premise data center infrastructure.By year-end 2024,our optimization strategy aims to have transitioned 1.58 MW of data processing capacity t

131、o more efficient data centers,with the ultimate aim of consolidating our footprint from 53 data centers(baseline 2021)to 13,both colocated and on-premise.During 2023,we launched three major projects as part of our renewable energy strategy.In Quebec,we established a new data center powered nearly 10

132、0%by hydropower,supporting growth in both Canada and the U.S.In India,we relocated to a new data center colocation project that can source up to 85%of its energy from renewable sources.In partnership with NorthC,we established a 100%renewables-powered engineering-focused data center in the Netherlan

133、ds that went live in early 2024,supporting our European growth.Concurrently,we closed seven older,less efficient on-premise data centers,with an additional ten closures planned for2024.23CEO letterAbout SynopsysESG at SynopsysOur Influence Through InnovationOur Impact Through OperationsEnvironmentSo

134、cialGovernanceAppendices2023 ESG Report23Sustainable Facilities Through our long-term strategy of centralizing operations in global growth hubs,we aim to locate our facilities in vibrant,walkable locations with access to efficient public transportation,advancing both sustainability and our ability t

135、o attract and retain talent.In 2023,we launched several new facilities management initiatives and aligned with new strategic partners who will help us further improve day-to-day operational efficiency at our facilities and reduce facility risks and operating costs worldwide.Our goals are to focus on

136、 the following areas:X Secure more comprehensive data on our operational energy use,water use,and waste X Benchmark our current capabilities against our industry and peers X Identify mitigation projects and green construction certification opportunities(LEED,BREEAM,etc.)X Partner with vendors whose

137、environmental commitments align with our environmental goalsSynopsys operates both owned and leased facilities,which together account for 79%of our annual Scope 1 and 2 GHG emissions.For new building construction and renovation,we seek certification from the U.S.Green Building Councils Leadership in

138、 Energy and Environmental Design(LEED)program or comparable construction standards in the facilitys region.Where feasible,we also work with our vendors and consultants to achieve these criteria at existing facilities.Currently,Synopsys occupies approximately 1.4 million square feet of green-certifie

139、d office space around the world.Since leased facilities account for the majority of our footprint,they are pivotal to achieving our renewable energy and climate goals.As part of the selection and leasing process,we pay close attention to candidate sites emissions levels,energy efficiency,water effic

140、iency,and waste recycling capabilities.As a signatory to the Clean Energy Buyers Association(CEBA)Commercial Real Estate Principles,we seek to build partnership and transparency between tenants and landlords around energy use reduction,efficiency,and use of renewables.Our new facilities management p

141、rograms will improve our ability to capture and track utility data for energy,water,and waste,and deliver local expertise to plan and execute on-site performance improvement opportunities and waste-mitigation projects.Water and Waste For new facility leasing arrangements,we require landlords to defi

142、ne their environmental initiatives with the goal of achieving certification to the applicable standard(LEED,BREEAM,etc.).Due to the nature of leasing structures,particularly in multi-tenant buildings,tracking our total water and waste impacts has proved a challenge.Across our footprint,local teams i

143、dentify and implement impact-reduction strategies for water use and waste.For instance,our headquarters in Sunnyvale,CA,donates an average of 1,400 pounds of food scraps weekly to the citys FoodCycle program,which recycles the waste into nutrient-rich fertilizer,animal feed,and feedstocks for anaero

144、bic digestion systems that create biogas.24CEO letterAbout SynopsysESG at SynopsysOur Influence Through InnovationOur Impact Through OperationsEnvironmentSocialGovernanceAppendices2023 ESG ReportSocial To help shape a Smart Future,Synopsys must remain at the forefront of innovationday after day,year

145、 after year.To do so,we focus on our people,ensuring our ability to recruit,support,and retain the most talented,diverse teams.From there,our circle of impact expands outward.We cultivate research,innovation,and our industrys future talent pipeline through university partnerships and we support K-12

146、 science,technology,engineering and math(STEM)education to instill a science mindset in students.Additionally,we address critical needs in communities worldwide through grantmaking and employee community engagement.25CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Develop

147、ment for the FutureSocial ImpactGovernanceAppendices2023 ESG ReportOur People At Synopsys,we empower our talent to create the tools required to keep us on the cutting edge,both today and well into the future.We are proud to have the best and brightest talent working together to forge a culture of in

148、clusion,diversity,support,and respect.Further,we enable all voices,backgrounds,and experiences to contribute to achieving our business objectives and delivering positive impacts worldwide.We know that employees can only bring their best to work each day if they are engaged,challenged,and supported p

149、rofessionally and personally.Through our ecosystem of learning and growth opportunities,collaboration and innovation tools,creative work environments,and robust total rewards,we help our employees thrive and do great work.Our People Strategy and Management ApproachOur People and Places Team,led by o

150、ur Chief People Officer,is focused on building a workforce of both early career and experienced talentcreating a vibrant,engaging workplace culture that offers robust opportunities for learning and growth.Our people strategy rests on our values of integrity,execution excellence,leadership,and passio

151、n,and our leaders and managers feel accountable for delivering a positive employee experience.Synopsys People Leadership Team provides quarterly human capital performance reports to our Boards Compensation and Organizational Development Committee.The Committee reviews workforce metrics to assess the

152、 vibrancy of our culture.Learn more about our people-related policies and commitments,our training and development strategy,and how we regularly listen and engage with employees through formal and informal channels.Synopsys Pitch FestSynopsys Pitch Fest is a new annual event introduced in 2023 to sh

153、ine a spotlight on our shared spirit of innovation.Open to all employees globally,Pitch Fests inaugural year saw more than 1,000 individuals pitch more than 850 ideas.26CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development for the FutureSocial ImpactGovernanceAppend

154、ices2023 ESG ReportInclusion and DiversityAt Synopsys,we know that our success depends on having diverse teams of extraordinary professionals who are empowered to innovate.We also know that true empowerment requires true inclusiona promise and practice that ensures all employees feel seen and respec

155、ted.With more than 20,000 employees across 30-plus countries,Synopsys is a tapestry of backgrounds,traditions,viewpoints,and attributes.By building a culture of inclusion,fairness,and trust,we enable a workplace where all our people can enthusiastically be and bring their bestspeaking up,sparking id

156、eas,listening,collaborating,working through challenges,and developing solutions that drive innovation.Our work creating an inclusive and diverse Synopsys spans throughout the employee experience,even before a new hire comes in the door.Since our leaders and managers play a key part in creating this

157、experience,we want them to have the mindset and skills to lead inclusively,and are committed to upholding this important part of our culture.Demonstrating our pledge to removing barriers to success and ensuring fairness for all,we regularly review and improve talent management processes that impact

158、the employee experience at Synopsys,including processes for hiring,compensation,talent development,and promotions.Fostering an Inclusive CultureCreating an inclusive culture requires actively listening to people of different backgrounds and demonstrating real interest,curiosity,and attention.With th

159、e goal of elevating each persons individual worth to benefit all,we offer programs and events globally through which our employees can learn about each other,foster connections,and demonstrate inclusivity every day.X Taking Action on Pay Equity:Since our first pay equity initiative in 2016,Synopsys

160、has remained committed to our employees being compensated fairly for their skills and expertise.In 2023,we conducted another comprehensive pay equity review for all positions globally to ensure equitable pay levels among employees performing similar work in similar locations.Women at Synopsys earned

161、 an average of$0.99 for every$1 men earned in the same position and location,and U.S.Black,Hispanic and Latinx,and Indigenous employees earned an average of$1.01 for every$1 earned by white employees.X Creating Community and Connection:Synopsys Employee Resource Groups(ERGs)create space for our empl

162、oyees to brainstorm,share experiences and ideas,and build welcoming communities that positively impact our business,culture,and the world beyond our walls.We also facilitate forums,discussions,and other activations around regional and global heritage months such as Black History Month and Global Div

163、ersity Awareness Month,highlighting the fact that diversity is about all of us.Comparably Best Places to Work Awards In 2023,we were named among the best companies for corporate culture,diversity,women,andCEO.27CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development f

164、or the FutureSocial ImpactGovernanceAppendices2023 ESG ReportWhy ERGs Matter to Me“I know that Synopsys is deeply committed to inclusion and diversity,and being part of HOLA!ERG helps me support strategic and business goals while advocating for the Latinx community.”Maria Layrisse,Executive Director

165、,Financial Planning&Analysis,Finance Women Impact Network(WIN)Developing womens engagement and leadership and inspiring girls and women to become techs next generation of innovatorsNEX-GENEngaging early-career hires to build connections,expand their networks,and build careers ofinnovation and leader

166、ship at SynopsysPRIDEFostering an inclusive and affirming space for LGBTQIA+people within Synopsys,the tech industry,and the communities where we workThe Very Inclusive Black Employee Network(VIBE)Cultivating a business environment that attracts,mentors,develops,and encourages Black employees to rea

167、ch their full potentialHOLA!Increasing awareness,leadership opportunities,and representation for Synopsys Hispanic and Latinx employees and supporting Hispanic and Latinx culture and identity28CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development for the FutureSocia

168、l ImpactGovernanceAppendices2023 ESG ReportTraining and DevelopmentSynopsys is a destination for innovators at all levels,from early career to more experienced talent.We offer an“always learning”culture that supports our employees in achieving their personal and professional objectives and enriching

169、 their lives.We know that our commitment to ensuring that everyone can thrive no matter where they are in their professional journey is a strategic advantage.By encouraging our people to seek greater knowledge and skills,we help them achieve satisfaction throughout their careers and we help Synopsys

170、 be a trusted,creative,and resilient partner.Across the company,our“Learn,Lead,Grow”strategy puts those aspirations into practice,delivering relevant and outcomes-oriented training.Our learning and development opportunities are designed to ensure our managers have the skills to nurture and motivate

171、their people and teams,and promote a vibrant,engaged work environment for all.X Learn:Through our Degreed digital learning platform,instructor-led sessions,and other support for training,mentoring,and listening,we make it easy for our employees to curate,share,and discuss their knowledge,cascading f

172、uture-focused capabilities throughout the organization.X Lead:Aimed at all executive and management levels,our leadership training teaches and reinforces the skills to attract,retain,and develop talent in todays competitive environment.Our Compass Leadership Essentials Course coaches managers on the

173、ir role,the business,and how to inspire,direct,and recognize their team members,and our Inclusive Leader series elevates managers inclusion and diversity mindset through practical examples and experiences.X Grow:As Synopsys employees advance in their careers,our training framework builds new compete

174、ncies on established foundational skills,equipping people for challenges and promoting advancement and retention.Connection and EngagementOur employees shape Synopsys,working together to achieve our mission and bring our values to life.Thats why were committed to listening to their needs,priorities,

175、and opinions and then taking action to drive transformation at all levels of the company.Our semi-annual SHAPE Synopsys surveys give our employees the opportunity to share feedback with leadership and their direct managers,adding their voices to help make Synopsys a better place to work.Our May 2023

176、 SHAPE survey garnered participation from 94%of Synopsys employees.We received above average engagement scores(82/100)and 89%of our employees recommend Synopsys as a great place to work.In response to survey feedback about communication,we instituted new mechanisms for connecting and sharing updates

177、,including Listen and Learn sessions and town halls.We also improved our efforts to identify and support lower-scoring teams.Leveraging historical survey data,we identified key engagement drivers and used them to design a campaign that provides managers and teams with the learning opportunities and

178、resources they need to improve engagement.By the end of 2023,86%of Synopsys people managers had completed our live Inclusive Leader training.Photo Credit:Nicole Chmura,Synopsys Employee,United States29CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development for the Fut

179、ureSocial ImpactGovernanceAppendices2023 ESG ReportTotal Rewards Synopsys provides competitive pay and benefits calibrated to attract,retain,and recognize talent at all levels of the organization.Our pay-for-performance philosophy ensures that we are rewarding employees based on their contributions

180、to the company and motivating all employees to help us deliver on and surpass our goals.Our approach is also structured to ensure we are rewarding our talent competitively based on job and location.While specific benefits are determined by country,Synopsys is committed to ensuring that all our emplo

181、yees and their families can achieve and maintain proactive health and wellbeing.Were committed to tailoring our benefits to cover key needs at all stages of life,providing comfort,financial assistance,and security through benefits such as mental health support,student loan remediation,elder care,onc

182、ology care,gender-affirming care,and parental resources that extend to the costs of surrogacy and adoption.Click here for more information on Synopsys benefits.“As a dedicated(and busy)executive,I wholeheartedly endorse our employee care platform for integrating employee benefits,insurance services,

183、and well-being into our daily lives.”Jamarie Milkovic,Senior Director,Global Brand&Creative,Global Marketing andCommunicationsOccupational Health and SafetySynopsys Occupational Health&Safety Management System helps to ensure safe and healthy workplaces globally.We are committed to the health and sa

184、fety of Synopsys employees,contractors,and visitors,and maintain policies and standards that support proactive hazard recognition and control,comprehensive safety training,robust emergency response,tabletop exercises,and global health and safety regulatory compliance.Our resilience as a company is d

185、irectly related to the investment we make in our people.In 2023,Synopsys Emergency Response Teams were comprised of over 700 members who have been trained to respond to life-threatening situations and other emergencies that may impact our people or operations.During the year,we introduced a new cont

186、ractor safety onboarding program to ensure our contingent workforce around the world is informed of workplace safety and health risks.To protect our people from emerging risks including climate and geopolitical issues,we invest in global emergency response and preparedness programs.Our SynopsysALERT

187、 system is designed to notify employees and their families in emergency situations and connect them with resources as needed.We test SynopsysALERT on a quarterly basis,and achieved an over 85%response rate in recent testing.Additionally,at most of our global locations,we have worked with Cardio Part

188、ners to assure the presence and functionality of defibrillators.Health and safety programs at our global sites evolve continuously to keep abreast of workplace safety and health risks and changing regulations.Photo Credit:Mimi Chang,Synopsys Employee,Taiwan30CEO letterAbout SynopsysESG at SynopsysEn

189、vironmentSocialOur PeopleWorkforce Development for the FutureSocial ImpactGovernanceAppendices2023 ESG ReportWorkforce Development forthe FutureSemiconductors form the backbone of key technologies driving global innovation and growth.While investments spurred by the U.S.CHIPS Act and other initiativ

190、es around the world guarantee massive increases in manufacturing over the coming decade,technology companies must match those efforts with investments in new talent that will help drive the industry forward.At Synopsys,were meeting that challenge with programs that engage and support todays students

191、 to become tomorrows engineers.Workforce Development for the Future Strategy and Management ApproachSynopsys Academic&Research Alliances(SARA)collaborates closely with universities on workforce development activities in communities across the world.With an emphasis on cultivating research,innovation

192、,and talent,the program seeks to deepen Synopsys role as a preferred technology partner-of-choice and empower the workforce of tomorrow.Our efforts touch a spectrum of academic stakeholders:X Students:Empower and educate the next generation of engineers to be ready to tackle tomorrows challenges X E

193、ducators:Provide learning opportunities and training materials while lowering access barriers to Synopsys technology for education and research X Researchers:Address evolving challenges in the semiconductor industry,uncover new solutions,and pave the path toward future technologies X Entrepreneurs:C

194、ollaborate to discover new technologies and turn fresh ideas into market-ready products31CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development for the FutureSocial ImpactGovernanceAppendices2023 ESG ReportSARA ProgramsThe Synopsys University Software Program is the

195、foundation of SARA,offering universities access to cutting-edge,commercial-grade Synopsys technology in the classroom and for research projects.Other programs offer academic stakeholders access to curriculums and tools for IC design and EDA development,customizable scripts for student design environ

196、ments,and a comprehensive online training hub and resource repository.SARAs curriculum currently includes more than 150 full-semester courses for bachelors and masters degrees,with fully developed collateral materials including slides,syllabi,labs,homework,exams,and projects.Passionate employees spe

197、arhead each program and partnership to educate professors and students and drive the industry forward.Through all these initiatives,we aim to accelerate classroom learning and help highly skilled graduates gain hands-on experience with real-world challenges,preparing them for future careers.To date,

198、Synopsys SARA program has empowered more than 230 universities and colleges across the United States and more than 1,000 universities globally.SARA PartnershipsIn addition to our direct engagement with academic stakeholders,Synopsys developed partnerships around the world in 2023 to fuel the develop

199、ment of future semiconductor talent.In August,we joined with other industry,academic,and government partners to create the Semiconductor Education Alliance,an effort to build and support future talent by developing frameworks tailored to the industry needs of specific geographies and providing accel

200、erated educational and training pathways,resources,and services.In September,Synopsys announced an effort to advance semiconductor development in Vietnam,partnering with the Authority of Information and Communication Technologies Industry(AICTI)of Vietnam to promote research and development in the l

201、ocal semiconductor design industry.In October,Synopsys and the Indian Institute of Science(IISc)in Bengaluru collaborated to launch the India Semiconductor Workforce Development Programme(ISWDP),which aims to ensure that Indian engineers are equipped with the fundamental and advanced skills needed t

202、o meet the nations semiconductor growth objectives.32CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development for the FutureSocial ImpactGovernanceAppendices2023 ESG ReportSocial Impact Synopsys translates our values into action by showing up and bringing about real,me

203、aningful change in and for our communities,which we believe contributes to our strong culture and employee engagement.Our Synopsys for Good program acts as a catalyst for change across three focus pillars:supporting science,technology,engineering,and math(STEM)education to prepare students for the f

204、uture;addressing essential needs and inequities in the community;and helping create a sustainable environment.In all three areas,we center the needs,perspectives,and lived experiences of the diverse communities we aim to serve,working to alleviate historic and ongoing discrepancies in access to oppo

205、rtunity,treatment,and outcomes.This equity lens drives our social impact process,from project development and nonprofit partnerships to resource allocation.In 2023,we met our social impact goals by increasing environment-focused grants and further aligning employee community engagement to how and wh

206、ere our people work.Our Social Impact Strategy and Management ApproachSynopsys for Good facilitates every aspect of our social mobilization,including corporate-led efforts,grants through the Synopsys Foundation,and employee giving and volunteerism.Synopsys for Good is managed by our Social Impact te

207、am and executed in partnership with employee Community Leads and Community Involvement Teams around the world.We take a regional management approach to philanthropy and employee community engagement and utilize a globally accessible online portal to manage volunteer projects,monetary and volunteer-t

208、ime matching gifts,and employee giving campaigns.Synopsys for Good generates positive impact in the community by mobilizing our employees and resources to help solve social challenges around the world and create access to opportunity.33CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur Peop

209、leSocial ImpactGovernanceAppendices2023 ESG ReportCEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development for the FutureSocial ImpactGovernanceAppendices2023 ESG Report2023:Social Impact by the NumbersSynopsys Foundation giving$4.5MSynopsys India CSR 2%giving$910KEmpl

210、oyee giving reported$1.4MVolunteer hours reported13,844Social Impact Focus AreasSynopsys for Good aims to create positive impact across three focus areas:Education Focusing on K12(primary and secondary)education,we aim to prepare students for the future of work and innovation with STEM education exp

211、eriences.We partner with organizations that work to close equity and achievement gaps;inspire and engage students to build problem-solving,design-thinking,and digital skills;and increase diversity in STEM education and career pathways.Community Focusing on the communities where we operate,we aim to

212、improve quality of life and address essential needs and inequities.We partner with organizations combating food insecurity and hunger,supporting inclusion efforts,and leveraging technology to address social challenges.Environment Focusing on climate change,we aim to mitigate its effects on people an

213、d the plant.We partner with organizations that help protect ecosystems,improve access to and use of clean energy in rural and low-income communities,and create experiences that shape the next generation of environmental stewards.34CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWor

214、kforce Development for the FutureSocial ImpactGovernanceAppendices2023 ESG ReportEngaging Employees withOurCommunities 2023 Season of Service73 projects20 countries43 office locations globallySeason of Service Season of Service is our annual one-month global volunteer program,through which Synopsys

215、employees worldwide can support projects aligned with Synopsys for Goods three focus areas.For optimum flexibility,employees may participate in person at Synopsys offices,at nonprofit locations or project sites,or virtually.In 2023,we nearly doubled the number of countries in which we supported proj

216、ects,engaged more Synopsys locations,and grew the total number of projects over the previous year.Running throughout November,projects supported the communities in which we work and live while we also encouraged employee community engagement company-wide.Click here for an overview of our 2023 Season

217、 of Service projects.Matching Gift Program Synopsys global Matching Gift Program amplifies our employees social impact by doubling their monetary donations and volunteer hours up to$1,000 USD per employee,per year.In 2023,combined employee giving and Synopsys Foundation match delivered$2.6M to nearl

218、y 2,000 eligible charities and nonprofits worldwide.35CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development for the FutureSocial ImpactGovernanceAppendices2023 ESG ReportBuilding Partnerships Through Philanthropy The Synopsys Foundation The Synopsys Foundation makes

219、 grants to eligible organizations in the communities where we operate,supporting programs and services that prepare students for the future through STEM education,address essential needs and inequities in the community,and work to mitigate climate change.In 2023,the Foundation supported 40 nonprofit

220、s,including:X Sunnyvale Community Services(United States),which provides financial assistance to low-income residents for housing,nutrition,medical care,and other needs X Apps for Good(Portugal),which provides schools with free tech innovation courses and empowers students with essential STEM skills

221、 X Guandu Nature Park(Taiwan),which protects 140acres of wetlands and vital bird habitat in northernTaiwanSynopsys Outreach Foundation Celebrating its 25th year,the Synopsys Outreach Foundation focuses on project-based STEM education,working to ignite interest,nurture potential,and empower students

222、at the K12 level.Collaborating with San Francisco Greater Bay Area education stakeholders and community partners,the Outreach Foundation aims to provide equitable and inclusive opportunities in areas including building STEM classrooms,supporting and fostering STEM experiences,and training STEM teach

223、ers.In 2023,projects supported by the Outreach Foundation included:X Building STEM Classrooms,which provided over 760 local educators with classroom STEM supplies X STEM Shops,which served five counties and over 600 new and career educators by providing foundational STEM supplies X STEM Opportunity

224、Fund grants,which provided$350,000 to local STEM fairs,family education nights,maker spaces,field trips,classroom curriculum,and intervention programs X Sciencepalooza!,which hosted more than 350 community members and partners at San Jose State University for free,fun,hands-on activities that explor

225、ed facets of STEM and pathways to STEM futures36CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development for the FutureSocial ImpactGovernanceAppendices2023 ESG ReportCorporate Social Responsibility at Synopsys India Synopsys India creates positive social impact by par

226、tnering with organizations that provide STEM education and infrastructure support,address essential needs and inequities in struggling communities,and help protect ecosystems.During the India 202324 financial year(April 1,2023 to March 31,2024),Synopsys India partnered with 20 nonprofit organization

227、s to implement 27 projects,impacting 59,000 beneficiaries.These impactful projects also fulfilled the obligatory requirements under Section 135 of the Companies Act 2013,which requires large companies to dedicate at least 2%of their average net profits to corporate social responsibility(CSR)activiti

228、es.These activities strengthen our Synopsys for Good mission to help solve social challenges around the world and create access to opportunity.Disaster Relief Synopsys has a long history of providing support when disasters and conflicts affect our communities,families,and friends.In addition to supp

229、ort for our own workforce,the Synopsys Foundation makes grants and matches employee donations to help with immediate relief needs and long-term rebuilding.Synopsys India CSR 2%GivingNonprofit partners20Projects27Beneficiaries59,000Photo Credit:Ankita Bhatnagar,Synopsys Employee,India37CEO letterAbou

230、t SynopsysESG at SynopsysEnvironmentSocialOur PeopleWorkforce Development for the FutureSocial ImpactGovernanceAppendices2023 ESG ReportGovernance To build and maintain trust among our stockholders and other stakeholders,we are committed to utilizing best practices in our operations,governance,repor

231、ting,and disclosures.Throughout 2023,our many efforts in support of this commitment included,among other things,further developing our resilience against cyberthreats and other potential business disruptions,engaging proactively with stockholders on ESG issues,and updating our governance policies ba

232、sed on evolving corporate best practices and stockholder feedback.Photo Credit:Nakul Jain,Synopsys Employee,India38CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialIntegrity,Ethics,and Business ConductBusiness Continuity and ResiliencyCybersecurity and PrivacySupply Chain EngagementCorporate

233、GovernancePolitical Activities and ContributionsGovernanceAppendices2023 ESG ReportPolicies and StatementsSynopsys Affirmative Action PolicySynopsys Board Committee ChartersSynopsys Bylaws Synopsys Business Partner Code of ConductSynopsys Code of Ethics and Business ConductSynopsys Conflict Minerals

234、 PolicySynopsys Corporate Governance GuidelinesSynopsys Data Privacy and Protection StatementSynopsys Political Activities PolicySynopsys Privacy PolicySynopsys Statement on UK Modern Slavery ActSynopsys Supplier Code of ConductSynopsys Voluntary Carbon Market DisclosureCorporate Governance Our Boar

235、d oversees the management of Synopsys business operations and ensures that the interests of Synopsys stockholders are served.The Board recognizes that advancing the interests of stockholders requires giving attention to the interests of other Synopsys stakeholders,including customers,employees,busin

236、ess partners,local communities,and more.A framework of bylaws,corporate governance guidelines,committee charters,and other policies and practices enables the Board to fulfill its duties to our stockholders,and provides them oversight of key issues,including,among other things,human capital managemen

237、t,ESG,and cybersecurity.The Board executes its oversight duties directly and through its committees,which regularly report back to the Board.For detailed descriptions of Synopsys corporate governance practices,please refer to our most recent Proxy Statement and Annual Report on Form 10-K,or visit th

238、e Corporate Governance page of our website.For details on our ESG governance,see How We Manage ESG.Photo Credit:Ankita Bhatnagar,Synopsys Employee,India39CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialIntegrity,Ethics,and Business ConductBusiness Continuity and ResiliencyCybersecurity and P

239、rivacySupply Chain EngagementCorporate GovernancePolitical Activities and ContributionsGovernanceAppendices2023 ESG ReportSkills and ExperienceBusiness Strategy-9/11Executive Leadership-11/11Financial Expertise-8/11 Global Expertise-10/11Public Company Board-10/11Risk Management-11/11Sales&Marketing

240、-8/11Semiconductor Industry Experience-5/11 Software Industry Experience-8/11 Strategic Transactions-11/11Board Composition Three standing committeesour Audit Committee,Compensation and Organizational Development Committee,and Corporate Governance and Nominating(CGN)Committeeassist Synopsys Board of

241、 Directors in its oversight of Synopsys business strategy and strategic planning,including,among other things,strategic transactions,senior management development,succession planning,and talent management.Continuous oversight enables our Board of Directors to focus on Synopsys performance over the s

242、hort,intermediate,and long term.In addition to financial and operational performance,non-financial measures such as goals for cybersecurity,sustainability,and other areas related to our ESG efforts are discussed regularly by our committees and reported to the Board of Directors.The CGN Committee wor

243、ks to ensure that the Board is comprised of directors that bring diverse viewpoints and perspectives and exhibit a variety of skills,professional experiences,and backgrounds to effectively represent the interests of our stockholders.To achieve this,the CGN Committee works with our Board to determine

244、 the appropriate skills,experience,qualifications,and attributes we seek in our Board members in light of our business environment,strategic priorities,and existing Board composition.Our Board is comprised of eleven members,three of whom are female and eight male.With the exception of our President

245、and CEO,Sassine Ghazi,and our Boards Executive Chair,Aart de Geus,all Board members are independent.Board SnapshotGender Diversity8Male3FemaleTenure410 years505 years2610 yearsEthnic Diversity8White2Hispanic or Latinx1Did Not DiscloseIndepen-dence2Non-Independent9Independent40CEO letterAbout Synopsy

246、sESG at SynopsysEnvironmentSocialIntegrity,Ethics,and Business ConductBusiness Continuity and ResiliencyCybersecurity and PrivacySupply Chain EngagementCorporate GovernancePolitical Activities and ContributionsGovernanceAppendices2023 ESG ReportIntegrity,Ethics,and Business Conduct In 2023,we introd

247、uced a completely new Code of Ethics and Business Conduct to better guide the behaviors and actions of our global workforce in accordance with our core values,high ethical standards,and legal obligations.Released simultaneously in twelve languages,the refreshed code is streamlined and more visually

248、engaging for ease of use and contains links to underlying policies and procedures in areas such as inclusion and diversity,protecting privacy and intellectual property,avoiding conflicts of interest and insider trading,anti-bribery and anti-corruption compliance,environmental stewardship,and social

249、impact.Our Business Partner Code of Conduct and Supplier Code of Conduct communicate our high ethical and legal standards throughout our business ecosystem.Our Ethics&Compliance(E&C)program is led by our Chief Ethics and Compliance Officer,who provides regular reports to the Audit Committee of the B

250、oard of Directors.Anti-Bribery and Anti-CorruptionSynopsys maintains a zero-tolerance policy for bribery and corruption.We promote high standards of ethical business conduct and are committed to compliance with global anti-bribery laws in countries where we do business.Our Code of Ethics and Busines

251、s Conduct outlines these commitments,and employees can access additional support via our internal Synopsys Anti-Corruption Compliance Policy.Our E&C team performs an annual anti-corruption risk assessment and collaborates with Internal Audit to assess Synopsys operations for corruption risks,evaluat

252、e our anti-bribery and anti-corruption compliance programs design and implementation,and test program effectiveness.In certain targeted locations,we deploy culture surveys focused on E&C issues to learn what our employees are experiencing,where they may need additional support,and to whom they are r

253、eporting concerns.Ethics and Integrity TrainingAll Synopsys employees are required to read,understand,and abide by our Code of Ethics and Business Conduct.Employees complete this requirement at hiring and every year thereafter during Integrity Awareness Month.In 2023,we created a new Code of Conduct

254、 training module custom-tailored to the specific business risks Synopsys employees encounter on a day-to-day basis.Additional trainings are offered to employees in certain roles and geographies,on topics including anti-corruption,import/export compliance,and antitrust.Reporting ConcernsSynopsys expe

255、cts our people to report suspected violations of laws,rules,regulations,and company policies by other employees or any of our suppliers,vendors,resellers,or distributors.Employees may raise these issues at any time without fear of retaliation,by reporting to a manager,People and Places team,Legal or

256、 E&C,or via our third-party-managed Integrity Helpline.Following a report,our E&C team oversees an appropriate investigation,the results of which are communicated to the Audit Committee.Click here for more information on our Code of Ethics and Business Conduct,Business Partner Code of Conduct,and Su

257、pplier Code of Conduct.Photo Credit:Megha Mittal,Synopsys Employee,India41CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialIntegrity,Ethics,and Business ConductBusiness Continuity and ResiliencyCybersecurity and PrivacySupply Chain EngagementCorporate GovernancePolitical Activities and Contri

258、butionsGovernanceAppendices2023 ESG ReportBusiness Continuity and ResiliencyPreparedness and resiliency are essential to Synopsys continuing ability to serve our employees,customers,and stockholders.In 2023,global conflicts and other tensions confirmed our operating resiliency and ability to respond

259、 to geopolitical events and shifting legal and trade compliance requirements.To maintain Synopsys resiliency,we refresh our business continuity plans annually,maturing and testing their ability to perform during scenario-based events such as economic or geopolitical crises,public health emergencies,

260、and extreme climate events that threaten our people,offices,operations,and assets.We invest in people,technology,processes,and controls to strengthen our ability to meet evolving threats.In 2023,we demonstrated our continuing commitment to enterprise resiliency by:X Completing a control assessment a

261、s part of our ISO 22301 certification,proving the resilience of our business continuity management systems X Deploying SynopsysALERT,our internal mass-notification system,and achieving over 85%employee participation in our most recent quarterly test X Integrating outcomes of our annual climate risk

262、assessments into business continuity plans X Conducting a tabletop exercise with our Regional Crisis Management Team and Corporate Crisis Management Team to test our response and recovery capabilities in AsiaTo meet the pace of disruption and help us manage multiple overlapping events,we are combini

263、ng technology,analytics,and AI to elevate Synopsys resilience program.These improvements will improve our ability to scan and monitor the horizon for emerging risks,identify potential disruptions,and plan mitigation scenarios.In 2024,we plan to continue refining our business continuity model to meet

264、 evolving challenges.Learn more about our climate risk assessment work in this reports TCFD Index.Photo Credit:Nilanjan Gogoi,Synopsys Employee,India42CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialIntegrity,Ethics,and Business ConductBusiness Continuity and ResiliencyCybersecurity and Priv

265、acySupply Chain EngagementCorporate GovernancePolitical Activities and ContributionsGovernanceAppendices2023 ESG ReportCybersecurity and Privacy Synopsys works 24-7 to manage evolving cyberthreats across our value chainprotecting our IP,helping our customers design protections into their systems and

266、 software,and maintaining the security and privacy of our partners and employees data.We recruit to deliver top cybersecurity talent and innovation to each challenge,across areas including threat monitoring,incident response,forensics,and investigations.Our approach includes:X An enterprise risk man

267、agement program that considers cybersecurity risks in the context of our business strategy X Security and privacy reviews designed to identify risks from new features,software,suppliers,and vendors X A vulnerability management program designed to identify hardware and software vulnerabilities X A va

268、riety of tools designed to monitor our networks,systems,and data for suspicious activity X An internal red team program that simulates cyber threats,informing our ability to fix vulnerabilities before theyre exploited by threat actors X A threat intelligence program designed to model and research ou

269、r adversaries X A variety of privacy,cybersecurity,and incident response trainings and simulationsWe conduct regular controlled penetration testing and annual cyber incident exercises to test the robustness of our data security protections and incident response readiness.Additionally,we leverage ind

270、ustry leading products and services to structure,test,and assess the rigor of our software security practices.Our Chief Information Security Officer(CISO)oversees our cybersecurity program and chairs a cross-functional committee that spans information security,IT,product security,physical security,a

271、nd legal.Our CISO has 30 years of experience in security,including for large public companies.Our CISO reports to the Boards CGN Committee Photo Credit:Megha Mittal,Synopsys Employee,India43CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialIntegrity,Ethics,and Business ConductBusiness Continui

272、ty and ResiliencyCybersecurity and PrivacySupply Chain EngagementCorporate GovernancePolitical Activities and ContributionsGovernanceAppendices2023 ESG ReportPhoto Credit:Ritika Hans,Synopsys Employee,Indiabiannually and the full Board at least annually on our cybersecurity performance and risk prof

273、ile.These reports include updates to our data security posture,results from third-party assessments,progress towards pre-determined risk-mitigation-related goals,updates on our incident response exercises,and steps management has taken and/or proposes to take to respond to cyber risks,incidents and

274、developments.The CGN Committee has individuals with significant experience in cybersecurity and related matters.Synopsys cybersecurity policies and procedures are designed to align with multiple industry-recognized frameworks including the National Institute of Standards and Technology Cyber Securit

275、y Framework(NIST CSF)and the ISO/IEC 27001 Information Security Management Framework,and are assessed regularly by our internal audit department.We track our NIST CSF implementation through regular third-party maturity assessments that provide the basis for establishing performance goals for the com

276、ing period.To address the SECs recently adopted disclosure rules around cybersecurity risk management,strategy,and governance,we have updated our Cybersecurity Incident Analysis Disclosure Controls Policy.Synopsys maintains cyber liability insurance that covers certain liabilities related to data br

277、eaches and related incidents.Since 2015,Synopsys has experienced no material information security breaches or associated penalties/settlements,and the expenses we have incurred from cybersecurity incidents were immaterial.Our Data Privacy CommitmentAs a business-to-business company,our access to per

278、sonal information is limited.Nevertheless,we are committed to strong privacy principles and transparency about our use of personal data,and we never sell personal data to third parties.Synopsys has a program in place to support compliance with privacy laws and protect the company from brand and repu

279、tational damage,and throughout 2023 we monitored the evolving global legal landscape and updated our program to account for new privacy obligations.Our document retention policies specify the periods of time after which data is to be deleted,based on country-specific rules.Our Chief Privacy Officer

280、is responsible for reviewing policies,procedures,contracts,services,and technology platforms designed to address evolving data privacy regulations in Europe,the U.S.,Asia,and around the globe.Our Data Privacy and Protection Statement covers our entire global business enterprise,enumerates our comple

281、te data privacy principles,and is regularly reviewed and updated for compliance with relevant laws and regulations.44CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialIntegrity,Ethics,and Business ConductBusiness Continuity and ResiliencyCybersecurity and PrivacySupply Chain EngagementCorporat

282、e GovernancePolitical Activities and ContributionsGovernanceAppendices2023 ESG ReportOur supply chain program is underpinned by our membership in the Responsible Business Alliance,the worlds largest industry coalition dedicated to responsible business conduct in global supply chains.Supply Chain Eng

283、agementAcross our business ecosystem,we follow strategies,policies,and initiatives that build supply chain resiliency and reliability,mitigate risk,promote responsible supplier and partner behavior,and advance international norms and standards.All direct suppliers of inputs for our hardware products

284、 must comply with applicable laws and regulations and our Supplier Code of Conduct,which mirrors the Responsible Business Alliance(RBA)Code of Conduct standards for labor,governance,health and safety,and environmental and ethical practices.In 2023,a facility audit through the RBA Validated Assessmen

285、t Program(VAP)was conducted at Synopsys hardware assembly and testing site in France,resulting in the implementation of minor program improvements to ensure adherence to the RBA Code.Synopsys made our annual conflict minerals filing with the U.S.Securities and Exchange Commission(SEC)for the 2023 re

286、porting year.We sought to survey all of our suppliers and identify high-priority suppliers.We received Conflict Minerals Reporting Template(CMRT)responses from approximately 91%of our suppliers,which account for 99%of our total spend on hardware products for this reporting year.See our website for m

287、ore information.Software Supply Chain Risk ManagementSoftware supply chain risk management is receiving significantly increased attention from public-and private-sector organizations globally.In the U.S.,new federal procurement rules require that all software developers that sell to the federal gove

288、rnment provide formal attestation that their software is developed in accordance with the Secure Software Development Framework(SSDF).SSDF contains specific practices covering all aspects of the software development lifecycle,including the provision of a Software Bill of Materials(SBOM)with all soft

289、ware deliveries.Synopsys is in the process of conducting internal assessments of our software development practices and will ensure all of our software products are compliant with the new rules when they become effective.45CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialIntegrity,Ethics,and

290、Business ConductBusiness Continuity and ResiliencyCybersecurity and PrivacySupply Chain EngagementCorporate GovernancePolitical Activities and ContributionsGovernanceAppendices2023 ESG ReportPolitical Activities and ContributionsSynopsys is committed to compliance with applicable laws,rules,and regu

291、lations,including lobbying registration and disclosure laws,ethics rules,provisions of the Foreign Corrupt Practices Act,and anti-bribery laws worldwide.In 2023,Synopsys engaged in direct advocacy with government officials on public policies relevant to the company,following applicable law and relev

292、ant internal procedures and approvals as stipulated in our Political Activities Policy.In the U.S.and abroad,we also engaged with trade and industry associations that may undertake advocacy on behalf of their members.Synopsys may contribute periodically to local ballot initiatives in California that

293、 are consistent with our quality-of-life goals.All such contributions are disclosed on our website.Photo Credit:Harshal Dhande,Synopsys Employee,India46CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialIntegrity,Ethics,and Business ConductBusiness Continuity and ResiliencyCybersecurity and Pri

294、vacySupply Chain EngagementCorporate GovernancePolitical Activities and ContributionsGovernanceAppendices2023 ESG ReportAppendicesPhoto Credit:Nilanjan Gogoi,Synopsys Employee,India47CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialGovernanceAppendicesGHG Emissions Data TableDiversity Metrics

295、 Data TableSASB,GRI,UN SDGs Data TableTCFD Index2023 ESG ReportGHG Emissions Data Table1 FY2019 data is in reference to Synopsys SBTi baseline year.2 The categories of Processing of Sold Product and Franchises are not applicable to our business and are not included in our Scope 3 inventory.FY2019 MT

296、CO2e1FY2022 MTCO2eFY2023 MTCO2eSCOPE 1 EMISSIONSFugitive Emissions(Refrigerants)1,1511,3571,414Natural Gas Combustion1,8862,0372,119Diesel Fuel Combustion14240Mobile Emissions694182164TOTAL SCOPE 13,7453,6003,697SCOPE 2 EMISSIONS(PURCHASED ELECTRICITY)Offices18,29613,80310,136Colocated Data Centers1

297、1,71516,92219,700TOTAL SCOPE 2(MARKET)30,01130,72529,836 SCOPE 3 EMISSIONS2Purchased Goods and Services59,667102,33989,560Capital Goods58,71019,03651,975Fuel and Energy Related Activities 8,6398,08212,259Upstream Transportation&Distribution1,7423,3023,376Operational Waste5383,0602,831Business Travel

298、19,17613,78920,441Employee Commute28,10217,25627,329Upstream Leased Assets Not calculated232,142Use of Sold Products25,69828,43037,757End-of-Life of Sold Products61114Downstream Leased Assets1,1354,7761,478InvestmentsNot calculated2,850315TOTAL REPORTED SCOPE 3203,413202,954249,477TOTAL REPORTED EMI

299、SSIONS237,169237,279283,010The data used in calculating GHG emissions are subject to measurement uncertainties due to inherent limitations based on the nature and methods used.The GHG Protocol allows for multiple measurement methodologies which could result in materially different emission values.Fo

300、r more information see our FY 2023 Statement of Greenhouse Gas Emissions.We will continue to update our methodologies for calculating GHG emissions based on emerging best practices.48CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialGovernanceAppendicesGHG Emissions Data TableDiversity Metrics

301、 Data TableSASB,GRI,UN SDGs Data TableTCFD Index2023 ESG ReportDiversity Metrics Data TableDiversity Metrics1“Other”is defined as American Indian or Alaska Native,Native Hawaiian or Other Pacific Islander,Two or More Races.2Senior level positions include employees designated in the human resource ma

302、nagement system as grade 69 and above,these positions include professionals with deep expertise in their functional areas with titles of senior staff,senior managers and above.Race and Ethnicity Representation(U.S.)AsianWhiteHispanic or LatinoBlack or African AmericanOther1UndisclosedOverall202151%4

303、1%3%1%2%2%202250%40%4%2%1%3%202352%38%4%2%1%3%Technical202158%36%2%1%1%2%202257%35%3%1%1%3%202359%33%3%1%1%3%Non-technical202125%61%7%3%2%2%202226%58%7%3%2%4%202327%55%8%3%3%4%People managers202150%44%3%1%1%2%202250%42%3%1%1%3%202350%41%3%1%1%4%Senior level positions2 202151%42%2%1%1%3%202252%40%3%1

304、%1%3%202353%39%2%1%1%4%49CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialGovernanceAppendicesGHG Emissions Data TableDiversity Metrics Data TableSASB,GRI,UN SDGs Data TableTCFD Index2023 ESG ReportDiversity Metrics1Senior level positions include employees designated in the human resource man

305、agement system as grade 69 and above,these positions include professionals with deep expertise in their functional areas with titles of senior staff,senior managers and above.Gender Representation(Global)MenWomenUndisclosedOverall202176%24%1%202275%25%1%202375%25%1%Technical202179%21%1%202278%22%1%2

306、02377%23%1%Non-technical202154%46%1%202252%48%0%202355%45%1%People managers202183%17%1%202282%18%1%202381%19%1%Senior level positions1 202188%12%1%202288%12%1%202387%13%1%50CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialGovernanceAppendicesGHG Emissions Data TableDiversity Metrics Data Tabl

307、eSASB,GRI,UN SDGs Data TableTCFD Index2023 ESG ReportTCFD Index The table below addresses the recommendations of the Task Force on Climate-related Financial Disclosures.Synopsys maintains that the climate risks outlined below do not have a material impact on our financial performance and operational

308、 results.GovernanceRecommendationsDisclosure/Links to More Information2023 CDP Reference Describe the boards oversight of climate-related risks and opportunitiesThe Synopsys Board of Directors oversees risk management at Synopsys and executes its oversight responsibility directly and through its com

309、mittees.The Corporate Governance and Nominating(CGN)Committee of the Synopsys Board of Directors has direct oversight of Environment,Social,and Governance(“ESG Matters”),the scope of which includes climate-related issues.As stated in its publicly available charter,the CGN Committee is responsible fo

310、r reviewing,assessing,reporting,and recommending to the Board as necessary,policies,practices,priority and risk assessments,risk management,initiatives,goals,progress toward goals,and public disclosures relating to ESG Matters,except to the extent delegated to other committees of the Board.The CGN C

311、ommittee coordinates with other committees of the Board to oversee ESG Matters,including Synopsys reporting,legal,and regulatory requirements with respect to ESG Matters as and when appropriate.The CGN Committee receives updates from the ESG Leadership Committee,led by Synopsys SVP and Deputy Genera

312、l Counsel.CDP Report (C1.1b)Describe managements role in assessing and managing climate-related risks and opportunitiesThe Synopsys Environment,Social,and Governance(ESG)Management Team is responsible for our ESG strategy and goals,which includes assessing,monitoring,and managing climate-related ris

313、ks and opportunities.The ESG Management Team is made up of senior leaders in Legal and Corporate Affairs.The ESG Leadership Committee includes executives from across our business who are tasked with driving Synopsys ESG performance and ensuring the implementation of our Smart Future strategy in thei

314、r respective areas of responsibility.Members of the ESG Leadership Committee participate in the climate-related risk and opportunity assessment of business activities and strategies.They also help inform the climate-related aspects of our ESG strategy and roadmap,including stakeholder engagement,met

315、rics and disclosures,and special projects.CDP Report (C1.2,C1.2a)v51CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialGovernanceAppendicesGHG Emissions Data TableDiversity Metrics Data TableSASB,GRI,UN SDGs Data TableTCFD Index2023 ESG ReportStrategyRecommendationsDisclosure/Links to More Info

316、rmation2023 CDP Reference Describe the climate-related risks and opportunities the organization has identified over the short,medium,and long termIn 2022,we completed a climate-related risk and opportunity assessment of the potential relevance and significance of the following climate-related risk a

317、nd opportunity drivers applicable to our business over short(02 years),medium(25 years),and long(5+years)time horizons.In 2023,we completed a refresh to the climate-related risk and opportunity assessment by updating the language to be more tailored to our company and by reassessing risks and opport

318、unities as necessary.Risk CategoryDescriptionTimeframeAcute PhysicalIncreasing frequency/severity of climate-driven events(e.g.,floods,wildfires,heatwaves,power interruptions)and potential disruption of operational and supply chain activities.Shortlong termChronic PhysicalWhile our direct operations

319、 are not water intensive,chronic physical changes including changing precipitation patterns and water scarcity could impact our supply chain,potentially leading to increased costs to secure key materials and/or manufacture our hardware products.Mediumlong termTransitional Regulatory/Legal Regulatory

320、:Failure to meet regulatory and investor reporting and disclosure requirements leads to fines and negative investor ratings.Legal:While we are not in a highly carbon intensive sector,we could potentially face legal riskfor example,associated with inaccurate GHG emissions reporting and/or other clima

321、te related expenses and disclosures.Further,statements about our climate initiatives and goals,and progress against those goals,may be based on standards for measuring progress that are still developing,internal controls and processes that continue to evolve,and assumptions that are subject to chang

322、e.Shortlong termTransitional PolicyEscalating energy and carbon costs increase supply chain costs and impair profitability.Mediumlong termTransitional ReputationalPotential implications for attracting and retaining talent,customers,and investment;lack of comprehensive climate strategies could impact

323、 our attractiveness to customers,investors,and talent,reflecting on our commitment to climate risk management.Shortlong termCDP Report (C2.1a,C2.3,C2.3a,C2.4,C2.4a)52CEO letterAbout SynopsysESG at SynopsysEnvironmentSocialGovernanceAppendicesGHG Emissions Data TableDiversity Metrics Data TableSASB,G

324、RI,UN SDGs Data TableTCFD Index2023 ESG ReportRecommendationsDisclosure/Links to More Information2023 CDP Reference Describe the climate-related risks and opportunities the organization has identified over the short,medium,and long term(continued)Opportunity CategoryDescriptionTimeframeResiliencePot

325、ential to increase resilience through incorporation of climate scenarios into business resiliency planning.Shortlong termProducts/Services/MarketDrivers for the low-carbon economy transition to stimulate increased demand for Synopsys products.Mediumlong termResource EfficiencyOpportunities to hedge

326、against future increases in fossil fuel costs driven by carbon pricing and other factors through investments in energy efficiency.Mediumlong termCDP Report (C2.1a,C2.3,C2.3a,C2.4,C2.4a)(continued)Describe the impact of climate-related risks and opportunities on the organizations business,strategy,an

327、d financial planningIn 2023 we had our science-based targets validated by the Science Based Targets initiative(SBTi),supporting our customers mission for a low carbon supply chain.Also,in 2022 we began to realize the economic and carbon free benefits of our VPPA,a 12 year commitment to a windfarm in

328、 west Texas.Annually,we assess our risks and opportunities against the TCFD framework.As such,we have not identified any physical or transitional climate risks as having a high risk or material impact on our business,strategy,or financial planning.However,acute physical risks such as severe storms m

329、ay cause business disruptions,impacting our hardware and digital supply chain operations.These disruptions are factored into our financial planning as well as our business continuity and disaster recovery programs.This includes related measures such as the maintenance of buffer stock for component p

330、arts and finished goods.Synopsys relies on third-party contract manufacturers to assemble our hardware products,such as the ZeBu Emulation system.Several of these manufacturers as well as their component and raw material suppliers are in regions,such as Southeast Asia and Northern Europe,that are vu

331、lnerable to increasing extreme weather events which can result in flooding and other impacts.Disruption to supplier operations can result in delays to production lasting from several days to several months depending on the severity of the event.For our hardware supply chain function,we maintain a bu

332、ffer stock of product and key components to support six months of supplier disruption.Additionally,where possible,we maintain two sources for parts and contract manufacturers in different geographies in an effort to not be impacted by the same disruption event.These strategies have helped us to avoi

333、d significant product supply disruption due to severe weather events.Additionally,as a technology company,we see great opportunity related to the development of low power products and solutions for chip design that optimize performance per watt.Future applications from AI to smart devices depend on silicon chips running faster,scaling down to smaller node sizes,integrating more capabilities,and pr