our vision our impact our world - Molex · our ecocare initiative. Since then, society’s vision...

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OUR VISION OUR IMPACT OUR WORLD 2012 SOCIAL RESPONSIBILITY REPORT

Transcript of our vision our impact our world - Molex · our ecocare initiative. Since then, society’s vision...

Page 1: our vision our impact our world - Molex · our ecocare initiative. Since then, society’s vision for business has been evolving; it has become increasingly important for companies

our vision our impact our world2 0 1 2 s o c i a l r e s p o n s i b i l i t y r e p o rt

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3 Welcome letter

4 CompanyProfile

5 about the report Global Governance

6 society Ethics Policy in Action

10 workplace Social Responsibility Supplier Responsibility Diversity and Inclusion Employee Recognition Policy in Action

18 environment Operational Responsibility Product Responsibility Policy in Action

contents

2 0 1 2 s o c i a l r e s p o n s i b i l i t y r e p o rt

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In2010,welaunchedourfirstannualreportthatfocusedonglobalenvironmental,healthandsafety(EH&S)effortsunderourecocareinitiative.Sincethen,society’svisionforbusinesshasbeenevolving;ithasbecomeincreasinglyimportantforcompaniestodelivernotonlyontraditionalmetricssuchasserviceandquality,buttoalsoleadimprovementsthatpositivelyimpacttheiremployees,theenvironmentandsocietyasawhole.

“ActingwithIntegrity”and“TreatingPeoplewithRespect”aretwooftheMolexcorevalues,andwebelievetheyareafundamentalpartofdoingbusiness.Growingglobalconcernsregardingemployeeworkingconditions,especiallyinemergingAsia,haveledustofurtherrefineourpolicies,expandemployeetraining,andformalizearobustsystemtotracksocialresponsibilityperformance,notonlywithinouroperations,butalsoforoursupplychainaswell.Thispastyearwecontinuedtoexpandthescopeofourthird-partysocialresponsibilityauditstoensureweconformtolegalandotherrequirements.And,underourecocareinitiative,wereleasedglobalstandardstohelpeliminatepotentialrisksbyestablishingEH&Sconsistencythroughoutourglobaloperations.Theimprovementsintheseareashelpeddrivehighperformanceinsideourorganization, asdemonstratedbyMolexbeinglistedas#11onthe “Top50EmployersinElectronicBusiness.”Whereverwe operateintheworld,Molexiscommittedtobeingan employerandsupplierofchoice.

Weknowthatbeingaworldclasscompanyismorethanthefinancialsuccessdeliveredattheendofthefiscalyear—it’salsoabouthelpingpeopleanddirectingresourcestoachieveapositiveimpactontheworld.Charitableoutreachhasbeen,andcontinuestobe,embeddedintheMolexcultureandavalueweencourageinouremployees.WhileMolexcontributedtomorethan100organizationsoverthepastyear,wearemostproudofthetimeandotherresourcesthatouremployeesdonatedtotheorganizationstheyarepassionateabout.Youwillfindmanyexamplesofthewayswehavefocusedongivingbackthroughoutthepagesofthisreport.

Lookingtotheyearsahead,weknowthatcustomerandconsumerexpectationsofsocialresponsibilitywillcontinuetogrow, and we are committed to meeting them. We want our customerstobeproudtheydobusinesswithMolex,andouremployeestobeproudofthecompanytheyworkfor,aswedelivertheinnovationandperformancethathascometobeassociatedwiththeMolexname.Thankyouforyourinterestinourcompanyandourprogressinresponsiblemanufacturing.

welcome

MartinP.SlarkVICECHAIRMAnAnd CHIEfExECuTIVEOffICER

LiamG.McCarthyPRESIdEnTAnd CHIEfOPERATInGOffICER

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company profile formorethan70years,MolexIncorporatedhassupportedcompaniesacrosstheglobebydeliveringtechnologiesandproductstotheelectronicsindustrythatcreateamoreconnectedworld.Wedesign,developandmanufactureacrosseveryregionoftheworldwiththesupportofaglobalteamofdedicatedMolexemployeescommittedtomeetingcustomerneedseveryday.Ourinterconnectproductportfoliohasdriveninnovationinmanyindustries,includinginformationtechnology,telecommunications,consumerelectronics,automotive,industrial,medical and military.

MoreinformationaboutMolexcanbefoundonline at www.molex.com or through our annualfinancialreport.

Molex is headquartered in Lisle, IL, USA. We own and operate 40 manufacturing locations and have more than 34,000 people working on our behalf. A listing of the locations of our principal manufacturing facilities by geographic region is presented below:

AMERICASMexico &United States

ASIA-PACIFICAustralia, China, India,Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand & Vietnam

EUROPEIreland, Italy& Poland

3.49 billion USD Net Revenue

$3.49

100,000+ products in our portfolio

100,000

319 patents issued

319

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our global presence

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about the report ThisisourthirdannualreportcoveringactivitiesthatoccurredduringtheMolexfiscalyear2012(fY12),July1,2011—June30,2012.Basedongrowingindustrytrends,wehaveexpandedthisyear’sreportfromourecocareinitiativetoincludeareviewofsocialresponsibilityas a whole.

We continue to report on our environmental performanceinthekeyareasweidentifiedinfY11.Theconsolidatedfigurescoverourglobalmanufacturingsites,aswellasourprimarydesignanddistributioncentersandthecorporateheadquarters.*Excludedsitesthatmayfallwithinouroperationalcontrolaresalescenters;thesehavebeenexcludedduringdevelopmentbecausetheydonotcontributesignificantlytoourcombinedenvironmentalfootprint.

ThisreporthasbeendraftedbasedontheGlobalReportingInitiative(GRI)G3.1SustainabilityReportingGuidelines.CarbonemissionshavebeencalculatedfollowingtheWorldResourcesInstitute(WRI)GreenhouseGasProtocol.Thedatapresentedwithinthisreporthasnotbeenauditedbyanexternalagency,buthasbeengeneratedbyourinternalmanagementsystems.ThroughoutthisdocumentyouwillalsofindPolicyinActionsectionsthathighlightspecificexamplesofourexternalphilanthropicactivitiesand our internal continual improvement activities,intendedtoreduceourimpacton the environment and create a healthy and safeworkplace.

global governance Asthemarketbecomesmorecompetitive,ourcustomersexpectcompaniestoproducehigh-qualityproductswhileoperatinginasociallyresponsibleandenvironmentallyconsciousmanner.Asaglobalmanufacturingcompanywithadiverseworkforce,weremainsteadfastinourcommitmenttomeettheseexpectations.Wemaintainextensivecorporategovernancestructuresandcontinuallyevaluateourbusinesspracticestoensurethatwearefulfillingourlegalobligations.Throughdirectseniormanagement involvement, our environmental Council,SocialResponsibilityCommitteeandBusinessConductCommitteecontinuetomonitorouroperationstoensurecompliancewithMolexpolicies,proceduresandprograms.Additionallyourbusinesspartnersareheldtothesameexpectationsasourinternaloperations.SupplychainperformanceiscloselymonitoredandmeasuredbyourGlobalProcurementCouncil.Withstrongmanagementcommitmentandoversight,wecontinuetoadvanceoursystems,mitigaterisksanddriveoperationalimprovements.

*ExcludingourlatestacquisitionwhoseinformationwillbeincludedinthefY13report.

We welcome your feedback. Please send comments or questions to [email protected]

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society

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operational responsibility 7

Ourintegrityisoneconstantinanever-changingglobal marketplace. We are committed to conductingourglobalbusinessactivitiesinanethicallyandlegallyresponsiblemanner.Thisincludescomplyingwithalllaborandemploymentlawsandregulations.MolexalsoupholdsthehumanrightsofallitsemployeesandsupportstheprinciplessetoutwithintheunitednationsuniversaldeclarationofHumanRights,theInternationalLaborOrganization’sCoreConventionsandtheunitednationsGlobalcompact. our internal labor and employment policiessetspecificrequirementsforlaborandhumanrights.

TheMolexvaluesextendbeyondourofficewalls;asacompany,wesupportthephilanthropicinterestsandpassionsofouremployees.Whethersupportinglocalfoodbanks,educationalprogramsforchildrenorfundingdisasterrelief,wearededicatedtomakingapositiveimpactonsociety.Ouremployeesbringthisphilosophytorealitybyactivelyengagingineventsintheirlocalcommunities.The“policyinaction”storiesfoundinthereporthighlightafewofthemanydiverseinitiativesinwhichouremployeeswereengagedoverthepastyear.

society

Our integrity is one constant in an ever-changing global marketplace. We are committed to conducting our global business activities in an ethically and legally responsible manner.

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ethicsTheMolexBusinessConductCommittee,whichconsistsofcorporateleadersaswellasleadersfromourfourdivisions,providesleadershipforsustainedethicalbusinessconductandoverseestheGlobalComplianceandEthicsProgram,includingtrainingandinvestigations.TheMolexCodeofBusinessConductandEthics(“CodeofConduct”),availablein14languages,isthecornerstoneofourorganization’scommitmenttointegrityandservesasthefoundationforthewayweconductbusiness,makedecisionsandtreatothers.TheCodeofConductprovidesguidelinesaboutimportantlaws,policies,andbusinessconductandintegrityrules.

In2012,weestablishedIntegrityCommitteesatfacilitiesthatsupporttheGlobalComplianceandEthicsProgramforourbusinessunits,manageinvestigationsandassistemployeeswithunderstandingtheCodeofConduct.furthermore,weoffertheMolexIntegrityLine,whichisaconfidential24-hourtelephonelineandwebsiteoperatedbyathirdparty.Employeesarealsoencouragedtoraiseconcernsdirectlytotheirsupervisorormanager,leaderoftheirdepartment,locationorbusinessunit,orHumanResourcesrepresentative.Molexprohibitsretaliationagainstanyonewho raisesaconcerningoodfaith.

AtMolex,webelieveethicsareeveryone’sresponsibility.Insupportofthis,welaunchedanewethicsbrand,“Integrity>ConnectedtoWhat’sRight,”thatdefinesemployeeandleaderresponsibilities.Employeesarerequiredtoactwithintegrity,berespectfulofothers,andconductbusinessinthehighestethicalmannerandincompliancewiththeCodeofConduct,aswellascompanypolicies,businesspractices,andlawsandregulations.Employeesmustalsocompletecomplianceandethicstraining,knowtherulesthatapplytotheirrespectivejobs,askquestionsiftheydonotknowtherulesandraiseconcernsaboutpotentialunethicalorillegalconduct.further,Molexleadersmustfosteracultureofethicsandcompliancebyleadingbyexampleandcascadingcomplianceandethicscommunicationstoemployeesandotherdirectreports.Corporateleadershipandseniormanagementsupporttheseeffortsacross theorganization.

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nogales, mexico: reforestation

Every year, our Molex Nogales facility is proud to sponsor schools in the local community, helping them achieve self-improvement goals. For the past two years, Molex has worked with a local Nogales middle school, Escuela primaria Nueva Creación el Represo.

Approximately 250 Molex volunteers helped the school plant 50 trees around the perimeter of the facility, including a watering system to sustain them, in order to create a “fence” to protect the schoolchildren from the intense sun and wind common to the area. Volunteers also worked to clean the school and establish a system to help the schoolchildren recycle. As a result, the children have learned the value of caring for their school, while at the same time, realizing the importance of recycling materials and caring for the environment.

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shanghai, china: support for special needs

Reflecting both the growing ranks and leadership of our female employees globally, the Molex Shanghai Women’s Business Council (WBC) arranged a charity event that took place at the Shanghai Zoological Park. More than 40 of our Molex volunteers spent time with young adult students from the Sunshine Home, a government-sponsored charity for individuals with mental challenges.

The Molex WBC sponsored the event in collaboration with Hands-on Shanghai, which hosts the annual Make a Difference Day celebration to encourage more people to actively contribute their time and skills to the Shanghai community and to those less fortunate. Our volunteer group guided the students in a shared exploration of the animal kingdom. By spending quality time and modeling healthy social interactions, the volunteers helped the students learn about different animals and their behaviors and habitats, while piquing their interest in nature.

Extending its beneficial partnership over the past four years, Molex continued its support of the Children’s Discovery Museum in San Jose, CA, by donating $25,000. A portion of this donation was used for the Jumpstart Initiative Program — featuring exhibits focused on health promotion, obesity prevention and engaging families in physical activities. In FY11, Molex made a similar donation to support the museum’s Mammoth Discovery Exhibit, which is still ongoing and features Lupe, a baby mammoth fossil found in the San Jose area that dates back 14,000 years.

Throughout the year, Molex employees from the Western Sales Region both promote, and volunteer at, these exhibits — helping on the museum floor and leading activity tables with children and families. In addition, Molex employees participate on an ongoing basis in leading programs for Family Science Nights, which are events designed to unite educators from local schools, children and their families in conducting science experiments first-hand. Molex also sponsors Legacy for Children Events, furthering our dedication to promoting science and education to the community.

san Jose, ca: science museum

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social responsibility Westrivetooperateourbusinessconsistentwiththehigheststandardsofsocialresponsibility,fromhowwemanageourmanufacturingoperationsandsupportouremployees,tothestrategicbusinessdecisionswemake.Thisincludesfosteringabusinessculturethatisbothdiverseandinclusive,treatingouremployeeswithdignityandrespect,creatingasafeandhealthyworkenvironment,andmostimportantly,managingourbusinesswiththehighestlevelofpersonalandprofessionalintegrity.Throughstrongexecutivecommitment,implementationofmanagementsystemsandathird-partyauditprogram,wecontinuetoimproveourperformanceandeliminaterisks.

workplace

workplace

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usingamanagementsystemapproachbasedonthePlan-do-Check-Act(PdCA)philosophy,weareimplementingrobustsystemstomanagesocialresponsibility.Thisprovenapproachprovidesasimplebuteffectivemethodologyforproblemsolving,managingchange,andmonitoringandanalyzingperformance,whileestablishingacontinuousfeedbackcycle—allwiththegoalofcontinualimprovementandriskmitigation.Aspartofthe“plan”phase,webenchmarkedglobalbestpracticestodeveloptheframeworkforourmanagementsystem.Wethenimplementedastandardizedriskassessmentmodel,updatedandcreatednewglobalpoliciesandprocedures,appliedsite-levelperformancescorecards,conductedaudits,andheldmanagementreviews.TwocriticalpoliciesupdatedinfY12

include our Global labor and employment policy andCodeofConductforSuppliers.Additionally,significanteffortsweremadetofurthereducateourglobalemployeesonoursocialresponsibilityobligationsandexpectations.

Aspartofthe“check”phase,wecontinuedtoexpandoursocialresponsibilityauditprogram.InitialandverificationauditswereconductedatMolexfacilitiesinChina,Japan,Korea,Taiwan,Singapore,Mexico,India,VietnamandThailand.Todate,allofourglobalmanufacturingsiteslocatedincustomer-definedhigh-riskgeographieshaveundergonethird-partysocialresponsibilityaudits.InfY13,wewillexpandauditactivityintoadditionalgeographiessuch asEurope.

Throughtheimplementationofsocialresponsibilityscorecards,seniormanagementcanmeasureandanalyzesite-levelperformance.Locationsreportprogressincriticalareas,suchaslaborandethicsmanagement,aswellasaudit-findingresolution.forexample,intheareaoflabormanagement,sitestrackandreportemployeeworkinghoursanddaysofrest.Theyalsoreportthenumberandtypesofcommunityengagementorphilanthropicactivitiestheyhavecompleted during the reporting period. While the measuresofsocialresponsibilitymayevolve,ourmanagementsystemapproachwillhelpensurewecontinuetoimproveourperformance,meetourcustomers’expectationsandupholdtheMolexcorevalues.

We strive to operate our business consistent with the highest standards of social responsibility, from how we manage our manufacturing operations and support our employees, to the strategic business decisions we make.

100% Globalmanufacturingsiteslocatedindefinedhigh-riskgeographieshaveundergonethird-partycomplianceaudits,helpingensurewearemeetingsocialresponsibilityandEH&Srequirements.

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supplier responsibility Lastyear,weundertooksignificantmeasurestoensureoursupplychainismeetingtheobligationsfoundinourupdatedCodeofConductforSuppliers.Socialresponsibilityperformancecriteriaareincludedinbothournewsupplier“on-boarding”process,aswellasexistingsupplierperformanceevaluations.Suppliersmustmeetoursocialresponsibilityrequirementstoengageusinnewandcontinuedbusinessendeavors.Toconfirmsupplychainperformance,socialresponsibilityauditsareconductedatglobalsuppliers,includinglaborbrokers,toensureconformancetoourrequirements.Lastyear,thenumberofsupplierauditsnearlydoubled,andweexpectthistrendtocontinue.Theseauditsensurecriticalsuppliersaremanagingtheiroperationsandtreatingtheiremployeesinamannerconsistentwithourexpectations.OurGlobalProcurementCouncil,comprisedofseniorsupplychainmanagement,overseesthedeploymentandexecutionofthisprogram.

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diversity and inclusion AtMolex,wevaluediversityanddifferences.Weareworkinghardtoensureaninclusiveenvironmentforouremployeeswherenewideasanddifferentperspectivesarewelcomedinordertofuelinnovationanddrivethesuccessofourbusiness.

InfY12,diversityandInclusion(d&I)continuedtobeadistinctfocalpointinourstrategicbusinessplan.Thefollowingactionsweretakentosupportthisgoal:

Anintegralpartofourd&Iprogram,BusinessResourceGroups(BRGs)havebeendevelopedtosupportinclusionandpromoteteamwork.EachBRGbeginsasasmall,informal,self-startedcollectionofemployeessharingcommoninterestsandissues,withitsownmissiontosupportavarietyofbusinessobjectives,includingemployeedevelopment,recruitingandon-boarding.CurrentlythreeBRGsexistatMolex.ItisourexpectationthatBRGswillcontinuetolaunchandexpandwherethereisemployeeinterest.

n A three-year D&I Strategic Plan was put in place to ensure we remain dedicated to building a diverse workforce and inclusive culture

n Across-functional,cross-divisional,globald&ICouncilwasestablishedtohelpshapesolutionsthatworkforthebusiness

n Ad&Imodulewasintegratedintonewemployee orientation around the globe and madeavailableinfiveprimarylanguages

n Ad&Iscorecardwascreatedtomeasure d&Iprogress

n Tocultivatefuturetalent,wealignedwithSTEM(ScienceTechnologyEngineeringandMathematics)programsinelementaryandsecondaryeducation

US

2007 2009 2011 2012

Japan Shanghai / Nogales Singapore / India

US

US

Japan / Germany / India

TA

RG

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expansion of molex business resource groups:

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87%73%

Caucasian

Asian

AfricanAmerican

Hispanic

Other

11%

8%6%

6%

1%1%4%

1%

51%females

49%males

17%females

83%males

managers

managers

total workforce

total workforce

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by ethnicity (us only)

by gender

diversity in numbers:

Tracking the demographics of our workforce and leadership is an important measure of our progress. As a global company, we want our top management to reflect the workforces in regions where we operate. Currently, 48 percent of the Molex Global Management Team is outside the U.S.

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by geographic region

26%

6%

68%

total workforcemanagers

33%

11%

56%

ASIA

EUROPEAMERICAS*

* including Canada and Latin America

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ceo high performance awards

Thisawardrecognizesindividualsandteamsthathavedirectlycontributedtothecompany’shighperformancegoalswithinthefiscalyearbyshowcasingexemplarycontributionsinfivekeyareas:Technology,Innovation,CustomerService,Leadership,anddiversityandInclusion.

molex fellows program

Thisprogramspecificallyrecognizesengineersforexceptionaltechnicalachievementovera10+yearcareer.Thoseselectedhavemadesignificantcontributionstowardadvancing Molextechnology,haveexemplifiedourcorevalues,andhavedemonstratedleadershipthroughthementoringanddevelopmentof othertechnicalexperts.

employee recognitionMolexemployeesdrivethesuccessofourorganizationthroughtheirdedicationandinnovation.Assuch,itisimportanttorecognizetheircontributions.WehaveaRecognitionWallonourHRPortalwhereemployeescansharemessagesofappreciationfortheirteammates.AndinfY12,welaunchedaformalawardsprocesswhichprovidesglobalrecognitionforhighperformingemployees.

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australia: skills development

Molex is pleased to support 370° group’s NECA Skills Centre in Australia. The 370° group Limited is a leading Group Training Organization in Victoria and Tasmania, and trade-based Registered Training Organization in Melbourne. Their NECA Skills Centre is a not-for-profit organization based in central Melbourne whose goal it is to develop and continuously improve apprentice, trainee and student skills for those desiring a career in electrotechnology.

Molex recognizes the important role education and training play in skills development for those with a future in the electrotechnology field. We strive to support such training opportunities in the hope of cultivating young talent that may one day further enhance and strengthen our own skilled workforce. In FY12, Molex donated tools and electronic products to the NECA Skills Centre to assist in high-quality training using the latest equipment. We plan to continue donating to this cause on a yearly basis to further support the hands-on education they provide.

Molex actively supports education and the investment of time and resources to improve opportunities for young adults. One program we are proud to be involved with is the Arkansas STEM Program, which focuses on Science, Technology, Engineering and Math education in high schools and universities.

This pilot STEM program, called STEM Works, is spearheaded by Arkansas Governor Mike Beebe and his Workforce Cabinet. The aim is to revamp the way high school students receive STEM education and grow the number of teachers qualified to instruct such courses. The first part of STEM Works will overhaul secondary STEM education

to better prepare high school graduates to pursue college degrees in related fields. The second part, called UTeach, provides secondary teacher training for college STEM majors.

In support of the STEM Works program, and to aid its efforts to ensure the state’s workforce can meet the rising demand in high-tech fields, Molex donated $35,000 to the cause and has committed additional time and resources toward helping this important pilot succeed. For instance, we regularly send Molex representatives to STEM coalition summits, where industry, government and education representatives meet to discuss STEM opportunities.

arkansas: stem program

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environment

operational responsibility Intheareaofenvironmental,healthandsafety(EH&S)management,weholdourselvestoahighstandard—oftenabovelocalrequirementsandpractice.Thispastyearfocusedondrivingglobalconsistencyacrosstheorganization,includingimprovinginternalprogramsandpracticesinordertoreduceriskwhilestrivingforoperationalexcellence.Severalglobalpoliciesforhealthandsafetymanagementweredevelopedandimplemented.ThesepoliciesstandardizetherequirementsforwrittenEH&Sprogramdevelopment,employeetrainingandexposuremonitoring,andreporting.Onesuchexample,aglobalHotWorkManagementprogram,utilizesindustryrecognizedbestpracticestofurtherreducepotentialoperationalrisksduringweldingorcuttingoperations.Standardizingpracticesisextremelycritical,especiallyingeographieswherelocalrequirementsmaybelessprescriptivethanthepracticesweexpectinouroperations.Theseglobalpoliciesfurtherenhanceprogramspreviouslyestablishedunderthird-partycertifiedISO14001andOHSAS18001managementsystems.

MonitoringandmeasuringourEH&Sperformancearealsocriticaltoimprovingoperationalperformance.OurEH&Sauditprogram,partoftheon-goingmonitoringactivity,continuestoreducerisk.usingthird-partyEH&Sprofessionalsandattorneys,weevaluatesitesagainstlocallegalrequirements,aswellasconformancetoMolexinternalstandards.Wastemanagement,airemissioncontrol,wastewaterdischargeandemployeetrainingareafewoftheenvironmentalareasaudited.Examplesofhealthandsafetyauditcriteria include machine guarding, chemical management,controlofhazardousenergy,workplacehazardassessment,personalprotectiveequipment,ergonomics,andemergencypreparednessandresponse.AuditresultsareincludedaspartofEH&Sperformancemeasurementandreportingprocesses.Auditresultsarereportedtoseniormanagementaspartofsite-specificEH&Soperationalscorecards.SitesalsoreportontheimplementationstatusofrequiredglobalEH&Sprograms.OurrobustinternalmonitoringandmeasuringprocesseshelpensuretheeffectivenessofourEH&Smanagementsystems.

90%

48%

90%

48%

ISO 14001 certified: 90% of facilities

ISO 14001 certified: 90% of facilities

OHSAS 18001 certified: 48% of facilities

OHSAS 18001 certified: 48% of facilities

90%

ISO

14001 certi

fied

48%

OHSAS 1

80

01 c

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of facilities

of facilities

eh&s management system certification

In the area of environmental, health and safety (EH&S) management we hold ourselves to a high standard. Our robust internal monitoring and measuring processes help ensure the effectiveness of our EH&S management systems.

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Natural Gas (m3)Electricity (MWh)Energy Consumption (GJ)

Consumption (m3)Discharge (m3)

Scope 1 (t CO2e)Scope 2 (t CO2e)Scope 3 (t CO2e)Total (t CO2e)

Non-hazardous (t)Hazardous (t)

1,8

09,7

84

453,3

66

443,1

49

1,8

09,4

36

1211 1211 1211 1211 1211 1211 1211 1211 1211 1211 1211

12,9

61

12,0

58

4,0

99

3,7

92

288,1

61

280,3

14

305,2

21

296,1

64

2,6

38,4

25

2,6

41,1

00

1,0

07,0

44

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96

17,7

11

15,2

07

2,4

39

2,8

27

1,7

01,4

32

1,6

64,6

36

energy consumption GHG emissions water waste

environmental performance fY11/fY12comparison

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product responsibilityInfY12,webuiltonourcurrentsystems,processesandstandardsforproductresponsibilityinordertomeetever-changinglegislativeandcustomerrequirements.Thisfocuswasdriven,inpart,bytheEuropeanunionRestrictionontheuseofHazardousSubstances(RoHS)recast,publishedinJune2011andcommonlyreferredtoasRoHS2.Itwasalsodrivenbythependingapprovaloftheu.S.SecuritiesandExchangeCommission(SEC)rulesforsupplychaindisclosurerelatedtotheuseofconflictminerals.

TheMolexChemicalSubstancesSpecification(MCSS)hasbeenthefoundationofourproductresponsibilityactivities,settingcontrolsforsubstancesthatarecurrently,orhavethepotentialtobe,regulatedfortheprotectionofhumanhealthandtheenvironment.TheMCSSrequirementsapplybothtooursuppliersandinternallytopurchasing,engineeringandmanufacturing.Becauseofthisdocument,wemaintaintheinformationnecessarytocontinuouslyassessthecomplianceofourfinishedproductsagainstnewandchanginglegislation.

Inaddition,theEuRegistration,Evaluation,andAuthorisationofChemicals(REACH)regulationregularlyrevisestheCandidateListofSubstancesofVeryHighConcern(SVHC),whichrequiressupply-chaindisclosure.Weproactivelymonitorthesechanges,whichoccurtwiceayear,andhavebeenabletorelyontimelysupplierdisclosurestoupdateoursystemsquicklywhentherevisionsoccur.TheseactivitieshaveallowedMolextoefficientlydisclosetocustomerstheSVHCcontentinourproducts.

AtMolex,wehavealsobeentracingoursupplychaintounderstandthesourcesoftin,tantalum,tungstenandgoldinourproducts.SECapprovaloffinalrules,asrequiredbythedodd-frankWallStreetReformandConsumerProtectionActSection1502,willimpactmanycompaniesintheelectronicsindustry,includingMolex.Thefinalrules,whichwillbegintotakeeffectincalendaryear2013,requirepublicdisclosureofinformationregardingthesourceofthesemineralsinanefforttoreduceconflictincertainareasofthedemocraticRepublicoftheCongo.MolexwillcontinuetoexpandsupplierinquiriesandensurecompliancewiththefinalSECrules.

InlookingtofY13,wewillcontinuetoenhancethecustomerenvironmentalrequestprocessasadditionalcustomersrequestenvironmentalcompliancedocuments,andnewregulationsrequireadditionalinformationtobecommunicatedinthesupplychain.

#187Molexdebutplacementonthenewsweek green rankings.Thetop500u.S.publiclytradedcompanieswererankedaccordingtoaGreenScorederivedfromthreeweightedcategories—EnvironmentalImpact,EnvironmentalManagementanddisclosure.

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lisle, il: energy efficiency

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Molex is proud to offer a range of lighting products that help organizations achieve more energy-efficient operations. Since 2010, Molex has been working with the Morton Arboretum on a project to transform their current lighting systems.

In the course of two years, Molex donated approximately 40 TranscendTM lights for installation in the cafeteria, which operate more efficiently and consume less electricity than conventional incandescent or fluorescent lighting. Additionally, these LED lights have a longer life span and are not manufactured with mercury that can be an environmental and health hazard if not disposed of properly.

Molex also provided materials to replace lighting in the Arboretum’s Ginkgo Room Restaurant, swapping their 30 existing light track fittings and transformers with simple, multi-socket lamp holders fitted with Transcend spot modules, which provide precise heat and current management. In addition, Molex has begun upgrades to the gift shop and anticipates donating another 200 par 30L bulbs to complete the final stage of the overhaul within the next few months.

The lighting upgrades have improved visitors‚ experience while helping the arboretum achieve significant savings in operational costs associated with energy use as well as labor and materials.

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auburn hills, mi: bio-based material use

Automobiles require connectors for many applications that are critical to successful operation — from doors and windows to safety cameras and instrument panels. These connectors are traditionally made from resins that are derived from petroleum, a non-renewable resource. This past year, Molex debuted the automotive industry’s first connector comprised of renewable, plant-based resin, thus illustrating our commitment to providing innovative solutions to our customers while simultaneously supporting our environmental initiatives.

Designed to withstand the harsh environments presented by automotive applications, the Stac64™-e connector successfully completed USCAR-2 Standard Class II validation testing for mechanical, environmental and electrical performance characteristics for unsealed connector automotive applications, proving that equivalent performance and quality characteristics can be achieved through the use of non-traditional materials. The Stac64™-e connector also received a UL Environment ECV certification confirming it contains 71 percent bio-based content in accordance with ASTM D6866-11. Molex will continue to explore the ways in which we can provide our customers with environmentally conscious options in our product portfolio.

lincoln, ne: energy reduction

An in-depth audit of the compressed air system at our Upland facility in Lincoln, NE, revealed that many of the compressors were not operating efficiently or at all. This resulted in an overhaul of the system, including the elimination of three compressors and the installation of an intuitive software program that evaluates facility demand requirements. These changes allow the remaining compressors to function at the lowest possible pressure, and in rotation, providing the minimum amount of air needed to support operations. In addition, an external 5,000-gallon storage tank can supply base facility requirements using only two compressors.

The more economical generation and distribution of compressed air throughout the facility has led to reduced energy consumption and associated costs. Prior to the reconfiguration, the facility operated 12 compressors capable of generating approximately 1215 HP. After reconfiguration, the facility operated 9 compressors at approximately 800 HP. The Upland facility is now able to support future production equipment additions using less energy and with reduced maintenance costs. In FY12, the new system saved 2,955,292 KWh.

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Order No. 987650-8091 Printed in USA/LSC/MIB/xx/2012.10 ©2012 Molex

formoreinformationonMolex,pleasevisit:www.molex.com