In 2020, we partnered with a third-party expert to conduct our first formal assessment of our ESG priorities to identify the ESG topics most important to Marvell and our stakeholders, including employees, customers, suppliers, nongovernmental organizations (NGOs), industry associations and investors. As an initial step in the assessment process, we identified relevant ESG topics through research, peer benchmarking and reviewing external sustainability standards and frameworks. We then interviewed multiple internal leaders and obtained external stakeholder opinions through publicly available reports, ratings and white papers. We used these responses to validate and prioritize a number of important topics.
The formal assessment of our ESG priorities helped us define and set our ESG goals, create a long-term ESG plan, and identify the strategic areas we intend to focus on and prioritize.
Our stakeholders are essential to our business success. To this end, we make substantial efforts, both internally and externally, to understand our company’s influence and impact on people, communities and the world through the lens of our stakeholders, including our employees, customers and investors. Stakeholder input directly affects the decisions we make when it comes to our operations, supply chains and products.
Marvell has a robust system of oversight and engagement to manage our ESG topics, which begins with a predominantly independent and diverse Board of Directors. By engaging with our Board and making sure we have proper governance structures in place, we proactively manage our impacts and risks, identifying opportunities for continuous improvement and making progress against our ESG goals.
To help manage corporate risks, we have an Enterprise Risk Management process in place. Our Executive Leadership Team (ELT) engages representatives from across the business to identify short-, medium- and long-term risks impacting the business and determines the absolute impact and likelihood of each risk. The ELT identifies risks in the following key business categories: Financial, Operational, Strategic, Sales, Engineering, Information, Organizational, Legal and Regulatory.
As a fabless semiconductor company, we rely on suppliers to manufacture, assemble and test our products. As a result, the most significant environmental and social impacts from product manufacturing take place within our suppliers’ operations rather than our own. To advance our ESG goals and priorities, we work with our suppliers on maintaining environmental and social industry standards within their operations, and we partner with others to further best practices throughout our industry.
Marvell’s Supplier Code of Conduct establishes the expectations we have for our suppliers on a range of ESG topics. Our Code requires that suppliers follow the Responsible Business Alliance (RBA) Code of Conduct. The RBA Code establishes standards for labor, health and safety, environmental practices, ethics and management systems. By working with RBA to further the use of consistent standards across our industry, we believe we can help improve ESG practices in partnership with our customers and peers and align our approach with industry-wide best practices.