Smarter Supply Chain Management | Synopsys

Smarter Supply Chain Management

For Synopsys, smarter supply chain management requires extending environmental, ethical, and social standards across the global supplier base. Our policies, strategy, and initiatives are focused on optimizing procurement operations and influencing our suppliers and partners to ensure a resilient, reliable, and responsible supply chain. We are working to build greater awareness of responsible environmental, labor, and human rights practices to mitigate risk across our business ecosystem while advancing international norms and standards for all stakeholders.

Responsible Business Alliance Logo | Synopsys

Responsible Business Alliance

As a member of the Responsible Business Alliance (RBA), Synopsys fully supports the vision and mission of the RBA. We are committed to the alignment of our operations with the provisions of the RBA Code of Conduct and to the adoption of the RBA approach and tools, where possible. Moreover, we encourage our first-tier suppliers to do the same.

Labor | Synopsys

Labor

Synopsys maintains a workplace where all employees, customers, and suppliers are treated with dignity, fairness, and respect. We maintain worldwide policies applicable to all employees in furtherance of these principles. We pride ourselves on providing a healthy, safe, and productive work environment that is free from discrimination or harassment based on race, color, religion, sex (including pregnancy), sexual orientation, age, national origin, disability, marital status, military service, or any other status protected by law. We also make reasonable accommodations for applicants and employees with disabilities consistent with applicable laws and regulations.

Conflict Minerals Policy

Integrity is one of Synopsys’ core values. We believe that running our business with integrity includes supply chain management. As a member of the Responsible Business Alliance (RBA), Synopsys is committed to aligning its operations with the provisions of the RBA Code of Conduct.

Although we are primarily a software company, we also offer a limited number of hardware products. Like many companies in the semiconductor industry, we are concerned by reports that trade in minerals mined in the Democratic Republic of the Congo and surrounding countries (the DRC region) may be funding violent militias that have committed atrocities in those countries. These minerals include tin, tungsten, tantalum, and gold, each of which is often used in semiconductors.

In 2012, the U.S. Securities and Exchange Commission (SEC) adopted rules under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that require publicly-traded companies to disclose the use of conflict minerals originating from the DRC region in their products. The rules currently define “conflict minerals” as coltan, cassiterite, wolframite and gold, and their derivatives, which include tin, tantalum and tungsten.

Synopsys fully complies with Section 1502 and the SEC rules, and we are committed to working with our direct suppliers to reasonably assure that the conflict minerals in the products we manufacture do not directly or indirectly benefit armed groups that perpetrate serious human rights abuses in the DRC region.

We expect our direct suppliers to assist us in our ongoing compliance and due diligence efforts. We have implemented a conflict minerals due diligence program that is based on the Organization for Economic Co-operation and Development’s “Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas,” that incorporates the standards set forth in this policy, and that leverages the reporting template created by the Responsible Minerals Initiative.

 

Form SD & Conflict Minerals Report

UK Modern Slavery Act Statement

Fiscal Year 2021

About Synopsys

Synopsys, Inc. provides products and services used across the entire Silicon to Software™ spectrum to bring Smart Everything to life. From engineers creating advanced semiconductors to product teams developing advanced electronic systems to software developers seeking to ensure the security and quality of their code, our customers trust that our technologies will enable them to meet new requirements for low power as well as reliability, mobility, and security.

We are a global leader in supplying the electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs), also known as chips. We also offer semiconductor intellectual property (IP) products, which are pre-designed circuits that engineers use as components of larger chip designs rather than designing those circuits themselves. We provide software and hardware used to validate the electronic systems that incorporate chips and the software that runs on them. To complement these offerings, we provide technical services and support to help our customers develop advanced chips and electronic systems. These products and services are part of our Semiconductor & System Design segment.

We are also a leading provider of software tools and services that improve the security, quality, and compliance of software in a wide variety of industries, including electronics, financial services, automotive, medicine, energy and industrials. These tools and services are part of our Software Integrity segment.

 

Slavery and Human Trafficking

The United Kingdom Modern Slavery Act 2015 requires us to provide information concerning our efforts to address the issues of slavery and human trafficking in supply chains. This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes the Slavery and Human Trafficking Statement of Synopsys (Northern Europe) Limited for the financial year ending October 31, 2021. This statement was approved by the Directors of Synopsys (Northern Europe) Limited on April 26, 2022.

 

Our Commitment to an Ethical Supply Chain

Since our inception more than 30 years ago, our core values have served to unite and guide our actions. Integrity, Execution Excellence, Leadership, and Passion are these core values, woven into the fabric of our organization. Our core values reflect our commitment to ethical business practices, including conducting operations that are free from human trafficking and forced labor. We believe that the risk of modern slavery and human trafficking to be relatively low given the nature of our industry and given that most of our direct employees are skilled professionals. However, we are aware of inherent risks further down the supply chain and Synopsys maintains a number of policies and practices to manage our supply chain in an ethical and socially responsible way.

  • The Code of Ethics and Business Conduct  (“Code”) is our roadmap for doing business the right way. We do business the right way when we act ethically and consistently with our core values, our Code, our policies, and all applicable laws. The Code specifically states that Synopsys does not tolerate the use of human trafficking or forced labor, including child labor, in our operations or in our supply chain. All employees are required to read, understand, and abide by the Code when hired and renew this commitment annually through Integrity Month training.
  • As a member of the Responsible Business Alliance (RBA), Synopsys fully supports the vision and mission of the RBA. We are committed to the alignment of our operations with the provisions of the RBA Code of Conduct (which includes sections related to the use of freely chosen employment) and to the adoption of the RBA approach and tools, where possible. Moreover, we encourage our first-tier suppliers to do the same. 
  • Synopsys’ standard master services agreement requires suppliers to conduct business in a manner consistent with our Code, including complying with laws pertaining to forced labor and human trafficking, and to respond to CSR information requests. In addition, we expect direct suppliers in our hardware supply chain to abide by the Synopsys Supplier Code of Conduct, which is based on the RBA Code of Conduct.
  • The Business Partner Code of Conduct (“Partner Code”) is the roadmap for Synopsys Business Partners to do business the right way. By conducting business with Synopsys, each Business Partner agrees to comply with the Partner Code and to maintain the highest ethical standards under any and all circumstances.
  • The Synopsys Integrity Helpline is available to anyone and is a dedicated resource for reporting ethics and compliance concerns or suspected violations.
  • Our Smart Future Corporate Social Responsibility (CSR) program provides a focus and structure for how we address both our own operational impact on the world and our ability to influence others around us. We maintain a CSR Leadership Committee made up of executives across our business and who are responsible for driving environmental, social, and governance (ESG) performance for Synopsys and in their respective areas of responsibility, including Supply Chain, and reporting progress out to the Synopsys Board of Directors. By engaging with our vendors on ESG performance, we aim to leverage our influence in driving CSR standards up through the supply chain.
  • Synopsys’ 2021 Corporate Social Responsibility Report includes our strategy and management of supply chain and corporate governance and ethics.

In fiscal year 2021, we undertook the following actions in support of the Act:

  • Members of our CSR team continued to conduct internal sustainable supply chain awareness sessions. These trainings focused on our expectations including emissions reduction, supplier diversity, and preventing forced labor.
  • Synopsys updated its Supplier Code of Conduct in line with the latest version (Version 7) of the RBA Code of Conduct.
  • Synopsys implemented new software platforms and updated processes and procedures to onboard and manage contingent workers and new vendors, enabling additional levels of supply chain oversight and monitoring.
  • Synopsys revised the Synopsys Purchase Order Terms and Conditions to require suppliers to certify upon request that they are in compliance with laws pertaining to forced labor and human trafficking, and to respond to CSR information requests.   
  • Synopsys continues to evaluate company processes and procedures to optimize efforts to preclude the use of forced labor and human trafficking in our supply chain.

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