Finisar Environmental Programs Summary

Finisar understands that our success as a business hinges on our ability to demonstrate that we are operating appropriately and responsibly. We recognize the impact our operations have on the environment and the health and safety of our employees, contractors and visitors and we take seriously our responsibility to protect the environment, our employees and others who may be impacted by our operations.

Finisar has an Environment Health Safety (EHS) management representative who is responsible for facilitating and assuring compliance across all Finisar operations. Finisar’s EHS programs are in place to ensure that our operations are compliant with international, federal, state and local laws and regulations as well as best management practices. Periodic compliance audits are conducted at major Finisar operations to ensure continued compliance. Efforts are underway to consolidate EHS programs, policies and procedures.

Finisar’s major operating sites in Ipoh, Malaysia, Sunnyvale and Fremont, California, and Allen, Texas are ISO 14001 certified. It is Finisar’s intent to achieve ISO 14001 certification at all major manufacturing sites by 2015.

Finisar has several ongoing programs and activities to address environmental issues.

• Greenhouse Gas Emissions

  Finisar tracks greenhouse gas emissions and currently limits tracking and reporting to Scope 1 and Scope 2 emissions from major manufacturing operations.  GHG emissions are below any established governmental thresholds for reporting.  Nonetheless, opportunities for reducing GHG emissions are reviewed and evaluated at the site level.  Finisar has reduced GHG emissions approximately 4% based on annual revenue from 2009 to 2010.

• Energy Consumption

  Energy consumption accounts for approximately 75% of Finisar’s GHG emissions.  Site teams are actively engaged in identifying energy conservation measures to directly reduce energy consumption requirements.

• Water Consumption and Quality

  Finisar’s semiconductor operations are major users of water resources.  Best engineering practices are employed to minimize water usage in Wafer FABs located in Allen, Texas and Fremont, California.   Additionally, site-specific projects such as reusing RO (“reverse osmosis”) water and once-through cooling water, modifying landscape irrigation systems, and using native landscaping have been employed to reduce overall water usage.

  Wastewater treatment systems are installed and monitored to ensure water quality meets or exceeds permitted discharge limitations.

• Waste Minimization and Recycling

  Finisar’s pollution prevention activities focus on reducing material usage.  Finisar’s Allen, Texas facility reduced purchases of non-production consumable materials by 85% from 2007 levels.  Less consumable materials translates to less waste in landfills.  Other Finisar sites are implementing similar strategies to reduce the use of consumable products and enhancing recycling programs to reduce waste disposal in landfills. 

  Waste minimization projects at various sites have also significantly reduced the amount of hazardous waste shipped offsite.  For example, at Finisar’s Fremont, California facility, hazardous waste has been reduced by approximately 41% since 2007.  Finisar’s Allen, Texas facility has eliminated the use of acetone and isopropyl alcohol in its FAB production process, allowing the site to reclassify and handle its solvent waste as “non-hazardous.”

  Finisar continues to reduce non-hazardous consumable trash primarily through source reduction and recycling.   Beginning with 2010 data, Finisar has begun tracking global waste generation and disposal to gauge continuous improvement in waste generation and disposal.

• Hazardous Materials

  Finisar recognizes the hazardous nature of many of the materials we use in our operations and uses engineering controls and safe work practices to minimize the potential impacts of these materials.  Finisar’s engineering teams actively pursue opportunities to use less hazardous materials.

CORPORATE GOALS

To further demonstrate Finisar’s corporate commitment, Finisar has established the following corporate goals with 5-year targets:

• Reduce Energy Consumption at manufacturing operations by 5 percent normalized to production
• Reduce Greenhouse Gas Emissions normalized to production by 5 percent
• Reduce Water Use normalized to production by 10 percent
• Reduce Total waste (hazardous and non-hazardous) normalized to production  by 10 percent

EXTERNAL RECOGNITION

• Finisar’s Fremont, California facility has been recognized each year from 2002-2011 by Union Sanitary District for consecutive years compliance for its Wastewater Treatment operations.
• In 2009, our facility in Allen, Texas received “The Ebby Halliday and Maurice Acers Business/Industry Leadership Award.”  This award named for two founding members of Keep Texas Beautiful recognizes those businesses with sound environmental principles.
• Also in 2009, the Allen, Texas facility was the 1st place Recipient of the Greater DFW Recycling Alliance “Outstanding Integrated Solid Waste Management.”

COMPLIANCE

Finisar operations strive for 100% compliance with governing laws and regulation.  The Corporation received no Notices of Violation or citations from any federal, state or local environmental regulatory agency for non-compliance with any environmental law or regulation.  However in 2011, Finisar’s Fremont, California facility received a citation and fine from the Department of Transportation for a shipping document error.  The issue was quickly addressed to the Department’s satisfaction and additional corrective actions were implemented to ensure continued compliance.

AUDITS AND REVIEWS

Finisar operations are routinely subjected to audits by external regulatory agencies and customers.  Finisar also conducts its own self assessments and enlists the services of third-party auditors.  Finisar’s Environmental Management System is audited annually by an outside certification organization.