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Editorial Backgrounders
Keysight Technologies Corporate Social Responsibilityx
Introduction
For more than 80 years – as part of Hewlett-Packard, then Agilent, and now a separate company – Keysight has acknowledged its responsibility to help address global social and environmental challenges. Our Corporate Social Responsibility (CSR) program ensures we contribute to building a better planet while supporting business objectives that align with our corporate values.
Keysight's CSR Vision
Keysight's CSR vision is to build a better planet by
- accelerating innovation to connect and secure the world – through our hardware, software and services solutions.
- and employing a global business framework of ethical, environmentally sustainable and socially responsible operations – through a comprehensive Corporate Social Responsibility & Governance Program.
Keysight's CSR Strategy
To achieve our vision, Keysight's business and corporate social responsibility efforts are synergistic — positively impacting the global community through our solutions and services, as well as CSR program. As a result, our CSR strategy ensures the planet and company thrives, is driven by aspects identified by our key stakeholders as important to them and our company and utilizes a governance structure with defined scope and management system.
We have identified and are tracking a set of key impact goals to measure progress toward our CSR vision. By the end of fiscal year 2020, we expect to:
- Commit more than $1.25 billion in value to strengthen communities through efforts in philanthropic giving, employee volunteerism, community sponsorships, and university engagement programs. Please note: the company's original target was $1 billion in value by end of fiscal year 2020 and was recently increased to $1.25 billion by end fiscal year 2020 due to significant progress made.
- Engage 570,000 students and future engineers in STEM education, using tools such as the Keysight After School program, community education events, and through student access to donated/discounted solutions at universities.
- Recognize $2 million in cost avoidance, 10% energy conservation and 15% water conservation per our fiscal year 2015 baseline with efforts focused on natural resource conservation and efficiency. Please note: the company's original water conservation goal was 10% by end fiscal year 2020, per fiscal year 2015 baseline and was increased in 2018 to 15% by end fiscal year 2020 due to significant progress made.
- Ensure no material negative impacts to P&L or to institutional investment levels through ethical operations and governance, ensuring no impact in our ability to deliver solutions that help connect and secure the world.
In addition to the key impact goals identified above, Keysight's CSR program areas are mapped to the company's business commitments to ensure the program enables the company to continue delivering solutions and services that support a more connected and secure world. To this end, our CSR program supports the company's objectives to:
- Hit revenue growth targets by implementing consistent CSR programs and global policies that enable faster acquisition integration and new market entry, develop employee and future workforce, and enable innovative product research approaches.
- Ensure profitability through natural resources conservation and efficiency to help reduce operating expenses and support cost avoidance.
- Supportshareholder value by mitigating risk and ensuring no material negative impact to the Income Statement or institutional investments from CSR related topics, while maintaining – or improving – environmental, social and governance (ESG) investment ratings.
Engaging Stakeholders, Values & Foundational Framework
To deliver to strategy, Keysight connects the company's important CSR aspects and programs, which are linked to stakeholder requirements, with our corporate values, and structures the program through a set of foundational pillars.
As such, CSR is a critical component of Keysight's Leadership Model (KLM) – the company's enabler to continuously deliver greater value to key stakeholders. By connecting our CSR program elements to this model, Keysight ensures CSR efforts are aligned with the company's core DNA and that the program tenets are supported across, and deep within, the organization where every employee has a part to play.
- Customers — Keysight strives to help customers meet their own CSR and business goals through partnership with the company and use of Keysight solutions.
- Shareholders — CSR supports value creation through operational transparency, business sustainability and lowering costs with sustainable operational practices, all while building Keysight's reputation as a solid, socially responsible brand.
- Employees — Keysight attracts, develops and retains a high-performance workforce with shared values through a positive work environment that helps employees and communities thrive.
The foundation of Keysight's CSR program is structured across six pillars. These foundational pillars – each with supporting policies, programs, action plans and accountabilities – provide a structure to which all CSR efforts are aligned and measured for company and global community benefit.
- Ethical Governance — Keysight is committed to conducting business in an ethically responsible manner, with strategic and operational policies, procedures and values that support transparency, sustainability and legal compliance; this commitment underpins all our foundational pillars.
- The Environment — Keysight prioritizes natural resource conservation, emission reduction, waste minimization and pollution prevention, and partners with our suppliers and contractors to better achieve these goals; our ISO 14001:2015-certified Environmental Management System drives continuous reduction of any adverse environmental impact from our operations.
- Responsible Sourcing — Keysight has strong partnerships with strategic suppliers to ensure mutual success and commitment to leadership in sustainable practices, technology and business operations.
- Our People — Keysight values a diverse, inclusive and respectful work environment where all employees enjoy challenging assignments, development opportunities, competitive salaries, and a safe environment.
- Our Communities —Keysight contributes to the communities where the company operates, participating in local and global volunteer efforts and supporting numerous charitable and educational organizations.
- Our Solutions —The company's portfolio of highly reliable and long-lasting electronic measurement solutions is designed to be safe, compliant with applicable regulation and maximize the value of our limited environmental resources.
Keysight's CSR Governance
Keysight's CSR program is managed by a cross-functional governance team responsible for meeting the company's corporate citizenship vision and stakeholder expectations by identifying program elements and driving accountabilities company-wide.
The governance team has direct oversight from Keysight's senior vice president of Corporate Services, with an executive steering committee comprised of company senior leaders from marketing, human resources, global procurement, investor relations, corporate counsel, field sales, corporate communications, and environmental health, safety and security. In addition, a director of CSR leads a core governance team that is empowered to represent their functional areas in the development and oversight of the CSR strategy, and are responsible for completing program deliverables. A governance core team member is assigned to each foundational pillar as well, serving as primary contact for reporting key performance indicators for the pillar and working with their respective extended teams to meet annual goals set for each foundational area.
Keysight's CSR Governance Team manages CSR efforts across the following key deliverable areas:
- Program Management — Materials such as documentation, tools and program reporting ensure strategic alignment to business commitments and track key performance indicators.
- Targeted External Reporting — Reporting is focused in environmental, social and governance investment ratings and optimizing resourcing across stakeholder data requirements.
- Annual Initiatives — Initiatives ensure progress toward our key impact goals and performance indicators, close identified gaps and address emerging trends.
- Communications and Outreach —Communications increase visibility of efforts and brand reputation.
As part of its CSR management system, Keysight's CSR Governance Team follows a standard process to effectively manage the program elements and set accountability:
- Plan — Annual planning, based on input from ongoing stakeholder engagements, trends and gaps analysis, sets target initiatives and measures, secures required resourcing and facilitates alignment between company functions.
- Do — CSR deliverables are implemented according to annual plan and regularly monitored.
- Check — Quarterly program reporting assesses progress toward targeted goals and reviews new input from ongoing stakeholder engagements for plan reprioritization as necessary.
- Act — Gaps identified in reporting, or changes in requirements, are assigned to appropriate Governance Team members for action.
Recently Reported Progress to Key Impact Goals
Keysight has already made significant progress toward delivering to our key impact goals, having met two goals in advance of the target date. As of November 1, 2018, Keysight has:
- Committed $1.02 billion in value to community strengthening efforts – the company's original target was $1 billion in value and now has been increased to $1.25 billion by end fiscal year 2020 given the original goal was already met
- Engaged 440,000 students in STEM education
- Recognized 6.04% and 15.18% respectively energy and water conservation per fiscal year 2015 baseline, which has resulted in about $1.09 million in cost avoidance – the company's original water conservation goal was 10% by end fiscal year 2020, per fiscal year 2015 baseline and was increased in 2018 to 15% by end fiscal year 2020 due to significant progress made.
- Experienced no material negative impacts to P&L or institutional investment levels from the CSR area
Related Information
About Keysight Technologies
Keysight Technologies, Inc. (NYSE: KEYS) is a leading technology company that helps enterprises, service providers and governments accelerate innovation to connect and secure the world. Keysight's solutions optimize networks and bring electronic products to market faster and at a lower cost with offerings from design simulation, to prototype validation, to manufacturing test, to optimization in networks and cloud environments. Customers span the worldwide communications ecosystem, aerospace and defense, automotive, energy, semiconductor and general electronics end markets. Keysight generated revenues of $3.9B in fiscal year 2018. More information is available at www.keysight.com.
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Contacts
Geri Lynne LaCombe, Americas/Europe
+1 303 662–4748
[email protected]
Fusako Dohi, Asia
+81 42 660–2162
[email protected]
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