Highlights from 2021

We are committed to being a socially responsible company by building the innovative technologies that transforms lives around the world

Innovation

Launched 13 significant, innovative products in 2021 across all business groups enabling the next wave of sustainable innovation

Net-Zero GHG

Reduced Scope 1 and 2 emissions by 32% in 2021 over 2019 baseline achieving our 2025 target early

Set a target to reduce Scope 1 and 2 emissions 50% by 2030

Set a target to be Net-Zero across all operations by 2040

Cadence Giving Foundation

Launched the Cadence Giving Foundation to promote the power of technology to support critical needs in our global communities, like diversity and inclusion, environmental sustainability, and education

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Diversity, Equity, and Inclusion

Our U.S. Black, Latinx, Veteran, LGBTQ+, and Women employee inclusion groups built new communities within Cadence through cultural celebrations

2021 Activities

A summary of Cadence’s environmental, social and governance strategy, programs and activities

Innovation

Cadence is a pivotal leader in electronic design, building upon more than 30 years of computational software expertise. Our advancements in computational software provide the foundation for the next-generation electronic design of chips, boards, and systems enabling smarter, smaller, and more power efficient products. Cadence applies its underlying Intelligent System Design strategy to deliver software, hardware, and IP that enables our customers to turn design concepts into reality. Our products and services enable our customers to design products for tomorrow—today and help drive advancements in sustainability across industries including Consumer, Hyperscale, Mobile, Communications, Automotive, Aerospace/Defense, Industrial, and Healthcare.

Smart and Efficient Growth Drivers

We introduced 13 significant new products across all our business groups, which we believe will be key drivers of our future growth. Our Intelligent System Design strategy drives our technology innovation and enables design teams to develop products of the future that are smarter, smaller form factors, and much more power efficient—advancing sustainability in end-product systems.

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Workforce

People come to Cadence to do meaningful work with a global impact. Each day with Cadence offers exciting opportunities to create a better, more connected world. We are leading the charge to solve technology’s toughest challenges. Our High-Performance Culture sets us apart as a community of passionate, bold, and creative people and outlines the values and behaviors that will enable our employees to succeed at Cadence. These values influence our practices for hiring, goal setting, development, promotion, retention, and recognition. The Great Place to Work Institute recognizes Cadence as an exceptional employer in many regions around the world. Our diverse team of passionate and talented employees go above and beyond for our customers, our communities, and each other.

Efforts to Increase Diversity

We expanded our efforts to build a more diverse and inclusive team through recruitment, career support, retention, development, and community-building for underrepresented groups. For the third year in a row, Cadence achieved global salary pay parity based on gender and U.S. salary pay parity based on race and ethnicity. We implemented critical measures in response to the COVID-19 pandemic to promote the continued safety, health, and well-being of our employees, customers, and extended communities.

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Environmental Stewardship

We are committed to enhancing our actions to combat climate change and taking steps to lessen the environmental impact of our facilities and business operations. Cadence monitors its performance on energy, emissions, waste, and water to conserve resources and reduce costs. Our culture of giving back inspires employees to participate in environmental initiatives that improve the sustainability of communities where we operate.

More Aggressive Emission Reduction Targets

With emissions reduction actions taken in 2020 and 2021, we realized our 2025 target for Scope 1 and Scope 2 ahead of schedule—exceeding our 15% goal by more than double. In recognition of the urgency to stabilize the climate, we are working to combat climate change on all fronts. In line with limiting the rise in global warming to 1.5 ̊C above pre-industrial levels, we set a target to reach Net-Zero across our operations by 2040, supported by a midpoint target to halve our Scope 1 and 2 emissions by 2030. Further, we expect to secure Carbon Neutral Certification for 2021.

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Data Privacy and Cybersecurity

Cadence supports enhanced privacy and data cybersecurity initiatives. We are committed to the protection of our customers, vendors, partners, and employees’ personal information. Our Information Security team works to identify and prevent risks to the protected data we collect. Our Chief Information Security Officer administers our data privacy and cybersecurity program, with oversight from our Board’s Audit Committee.

Enhanced Network Security

With a vast majority of employees continuing to work from home during the COVID-19 pandemic, we maintained our focus on providing secure remote access with endpoint security controls and infrastructure resiliency. We enhanced our verification controls to further protect our network from unauthorized access and we utilized cybersecurity incident response procedures to address risks specific to remote working conditions.

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Governance

Our corporate governance is founded on Cadence’s values and is an integral part of our culture. It is aligned with our stakeholders’ best interests and the requirements of the law. Our commitment to efficient company management, protection of stockholders’ interests, and the transparency of corporate communications is vital to gaining and retaining the trust of our stakeholders. The Board, through its Corporate Governance and Nominating Committee, regularly reviews our corporate social responsibility program. In our annual engagement with stockholders in 2021, we discussed our ESG efforts as well as our Board’s composition and diversity of background.

Tone at the Top

We reported to our Board of Directors on our ESG efforts and initiatives, including our revised carbon reduction targets and breakout of gender and ethnicity included in this report. We added two new directors to our Board in 2021, and one new director in January 2022, bringing the board to 11 members.

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Supply Chain

Cadence is committed to doing business honestly and ethically and we expect the same from our suppliers. To ensure our relationships with our suppliers meet and support these expectations, we are members of the Responsible Business Alliance as an Affiliate Member since 2018.

Alignment of ESG Targets to Supplier Management

We extended our rigorous governance standards across our value chain with our inaugural Supplier Code of Business Conduct, which we shared with all new suppliers in 2021. To better understand our upstream ESG risks and opportunities, over 100 of our key suppliers were asked to participate in our supplier sustainability questionnaire that covers issues including governance of climate change, natural resources, labor, data security, ethics, and integrity. We also focused on identifying diversity in our supply chain.

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Executive Statement

Anirudh Devgan
 

The power of our innovation engine is our people. I am amazed by our employees’ dedication to their work, customers, and communities, and their resilience to deliver impactful results in the face of the ongoing challenges presented by the COVID-19 pandemic. Their passion is what drives our One Cadence – One Team spirit and delivers impactful business results.

– Anirudh Devgan, President and Chief Executive Officer Read More

 

Awards for 2021-2022

Recognitions for our efforts around our environmental, social, and governance strategies.

25+ Best Workplace Recognitions

Best workplace honors from the Great Place to Work Institute in multiple categories across 13 different countries during 2021

World’s Best Workplaces

Fortune ranked Cadence #17 on their top 25 World's Best Multinational Workplaces 2021, our sixth time appearing on this list

Best Place to Work for LGBTQ+ Equality

Recognized by the Human Rights Campaign Foundation with a perfect score of 100 on their 2022 Corporate Equality Index

Top 50 Companies that Care People

For our programs that care for, and support, the environment, our employees, and the community

100 Best Companies to Work For Fortune

Named for the eighth year in a row by Fortune Magazine and appearing as #38 in 2022

25+ Best Workplace Recognitions

Best workplace honors from the Great Place to Work Institute in multiple categories across 13 different countries during 2021

America’s Most Loved Workplaces 2021

#7 on Newsweek's inaugural top 100 list based on employee happiness and satisfaction at work

America's Most Responsible Companies 2022

#115 on Newsweek's list of top 500 Most Responsible Companies 2022, and #6 in our industry

Mahatma Awards

Awards for COVID 19 Humanitarian Efforts and excellence in Corporate Social Responsibility in India for 2021

100 Best ESG Companies

Recognized by Investor's Business Daily in 2021 for our profitability along with ethical and socially responsible business practices

OIP Partner of the Year

Cadence received four Open Innovation Platform Partner of the Year awards from TSMC core EDA, IP and systems solutions in 2021

Cadence Wins Two Gold Stevies in the 2021 International Business Awards

Gold Stevie Awards for Technical Innovation of the Year and Best Hardware Product in Semiconductor for Dynamic Duo

China IC Design Award Outstanding EDA Company

The award recognizes leading IC design companies in 2021 whose contributions assist engineers in developing electronic system products in China

World Electronic Achievement Awards

Cadence® Palladium® Z2 Enterprise Emulation Platform was selected by ASPENCORE analysts and their user community worldwide in EDA/IP/Software in 2021