SMSC is committed to working toward a sustainable environment. We endeavor to make continual improvements in natural resource conservation through efficient product design and global operations thereby reducing greenhouse gas emissions generated by our products and facilities. Our environmental life cycle process seeks to reduce our carbon footprint through product life and recyclability and efficient use of materials, energy and transportation. We remain committed to promoting smart energy policies across our global organization.

SMSC supports efforts by the Electronic Industry Citizenship Coalition (EICC) and Global e-Sustainability Initiative (GeSI) to avoid the use of minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo ("DRC") and its surrounding countries. To that end, SMSC has reached out to its suppliers to ascertain the origin of any "conflict minerals" (gold, tin, tantalum and tungsten) mined in this region.

While such traceability through many tiers of SMSC's supply chain is complex, and subject to some confidentiality restrictions, we have been collecting written evidence concerning the utilization of conflict minerals in the fabrication of SMSC products. Based upon the review of information received by SMSC from its suppliers, SMSC, to its actual knowledge and belief, is not receiving any purchased components or materials containing conflict minerals that originated in the DRC and its surrounding countries.

SMSC is committed to working with the latest industry initiatives regarding conflict minerals in order to proactively drive responsible sourcing through its supply chain, and secure routine affirmation that such suppliers are only using minerals that are "DRC conflict free".

Standard Microsystems Corporation and its subsidiaries support efforts to create international labor and human rights standards. We do not knowingly employ or do business with parties that employ slaves or trafficked persons. Further we have implemented or will implement the following policies and procedures in support of these efforts:

1. Our purchasing order terms and conditions have language requiring compliance with all relevant laws, including fair labor standards. A specific reference to slavery and human trafficking will be added to the terms and conditions.
2. We will require our primary direct suppliers to provide us with a yearly certification that they are complying with laws regarding slavery and human trafficking applicable to them.
3. We will amend our code of ethics to prohibit knowingly doing business with entities that employ slaves or trafficked persons, in addition to existing requirements to comply with applicable laws.
4. We will periodically train our procurement staff on slavery and human trafficking issues.
5. Although we do not specifically audit our suppliers and our supply chain with regard to slavery and human trafficking, we do periodically audit our suppliers and have management meetings with them. These include site visits and requiring suppliers to demonstrate that they have been audited by independent outside auditors in accordance with ISO 14001, ISO 9000-2009, TS 16949, and EICC codes of conduct.
6. Suppliers that fail to comply with the laws regarding slavery and human trafficking applicable to them are subject to being terminated. Employees who violate our policies are subject to disciplinary action up to and including termination of employment.

The foregoing constitutes our compliance procedures. Any questions or concerns about our policy should be directed to the following email: