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Lumentum Commits To A Sustainable Future

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Company pledges ambitious goals focused on net-zero emissions by 2030, gender equity, employee health and safety, and a zero-defect culture

Lumentum Holdings Inc has released its first Corporate Social Responsibility Report, covering the company's commitment to a sustainable future and its performance against its sustainability goals. Lumentum corporate social responsibility is built on three main pillars: reducing its impact on the environment, having a positive impact on people, and innovating for breakthrough impacts for its business and the world.

Lumentum has committed to environmental, social, and governance standards that are aligned with the U.N. Sustainable Development Goals (SDGs) across its value chain. Lumentum is taking on a range of challenges to create a more sustainable future including committing to net- zero greenhouse gas emissions by 2030, building a diverse and inclusive culture, responding to the COVID-19 pandemic with flexibility and support for employees, driving continuous improvement in all areas of its business, and driving breakthrough innovation within the organisation.

“Being responsible corporate citizens and being transparent and accountable for our impact to society is very important to Lumentum and its employees in our mission to create a brighter future,” said president and CEO, Alan Lowe. “This report details our ingrained philosophy of doing what is right to improve the world by measuring and managing our social and environmental impacts with great care, transparency, and dedication.”

Net-Zero Greenhouse Gas Emissions by 2030

Lumentum has committed to achieving a target of net-zero scope 1 and 2 greenhouse gas emissions by 2030. Moving toward achieving this goal, Lumentum has transitioned its San Jose headquarters, a new R&D facility in Milan, Italy, and a manufacturing site in Škofljica, Slovenia to 100 percent renewable electricity.

“This report marks a major milestone in Lumentum's sustainability and compliance journey as it naturally couples our zero-defect company culture with a laser focus to achieve net-zero emissions, remove waste, and energize our people while delivering value to all the stakeholders,” said Senior Vice President Global Operations and Chief Quality Officer Misha Rozenberg.

Diversity, Inclusion, and Belonging: Embracing Our Differences, Together

Lumentum says it believes that employee and thought diversity delivers more innovation and ultimately better business results.

In alignment with the UN SDGs, Lumentum is committed to ensuring equal treatment and pay of employees regardless of gender. The company analyses pay equity quarterly as a standard practice in the company's global compensation program.

Additionally, Lumentum has established goals to increase the representation of several underrepresented populations in the company and has exceeded its goal of 10 percent Black/African American representation of new hires and increased the percentage of women in senior leadership positions to nearly 21 percent. Lumentum also exceeded its early career hire goals with 48 percent of new employees being within the first five years of their career.

Rising to the Challenge: COVID-19 Response

In advance of government lockdowns and national requirements, employees who were able to perform their job functions remotely were transitioned to working from home. Lumentum also offered employee assistance programs, additional compensation for essential workers, stipends for internet expenses and ergonomic assessments, and “thank you” days off where all employees were given the same day off worldwide to relax and recharge.

Zero-Defect Culture

In 2017, Lumentum began its journey to reinvent its culture by implementing a zero-defect mindset throughout the organisation. The company focused on using the fundamentals of Kaizen, or continuous improvement. A demonstration of the company's successful quality culture is seen at Lumentum's Navanakorn, Thailand factory. This greenfield site, from its beginning, adopted a zero-defect culture focused on continuous improvement. Within three years of opening, the site received Thailand's Prime Minister's Industry Award for Outstanding Achievement in Quality Management, faster than any other factory in the history of the award.

Innovation for a Brighter Future

Innovation is central to Lumentum's business strategy and company culture. The company believes its history of innovation is seen in its product leadership positions and comprehensive intellectual property portfolio, which includes nearly 1,000 US patents, over 850 foreign patents, and roughly 600 patent applications pending around the world. Employees are recognised and rewarded for discovering original and creative ways to address challenges.

Lumentum says it hopes to create a brighter future by accelerating photonic innovation and placing a concerted effort to reduce its impact on the environment and have a positive impact on people. In doing so, Lumentum believes it will have stronger long-term economic performance and help create a more sustainable future for its employees, shareholders, customers, suppliers, and all of society.

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