STMicroelectronics Firm’s Sustainability Analysis


It is important to note that sustainability is essential for large businesses since it not only affects their marketing and brand but additionally determines their role in reducing their negative impact on the environment and communities. The given report review and analysis will primarily focus on the 2019 sustainability report by STMicroelectronics (ST).

STMicroelectronics’ Response to Market Demand

The sustainability report by ST is a comprehensive and thorough document providing all the key details on their activities and efforts to increase the company’s sustainability. From the file, it is evident that ST is being proactive about what is best for the customers. It is stated that “consumers across all generations are willing to pay more for sustainable products than retailers expect” (Petro, 2022, para. 10). In addition, a wide range of reports show that the markets trend towards sustainable practices and products, where, for example, “consumers judge packaging material by criteria of circular economy, natural looking material, and design” (Otto et al., 2021, p. 126733). In other words, there is a clear shift among the consumers to be more demanding of companies in regards to sustainability and the environment. Thus, there is both market demand for higher sustainability and proactiveness from ST’s side.

However, these statements are meant to highlight ST’s efforts since they are highly systematic and comprehensive in their nature. It is clear that ST’s sustainability strategy is highly superior to other reactive companies (Wijethilake, 2017). For example, it pursues an increase in profits, waste reduction, material and water reuse, employee empowerment and care, diversity and inclusion, chemical pollution reduction, volunteering, and quality (STMicroelectronics, 2019). Thus, ST’s goals and actions are outstanding in their ambitions and benefit the consumers, communities, and environment, but these measures are accompanied by market shifts toward a greater awareness of sustainability among consumers (STMicroelectronics, 2019). ST should be considered proactive since many of its strategic elements are about preventing rather than treating the issues.

I think that the average customer will respond positively to the information contained in the report since his or her purchase will not contribute to pollution, human rights abuses, or climate change. In addition, such a buyer will be satisfied that the transaction is contributing to the education and volunteering of the future workforce through a diverse and inclusive company (STMicroelectronics, 2019). This is an example of targeted economic development because specific goals are being pursued as a result rather than relying on the general forces introducing the improvements (Mitchell et al., 2020). In contrast, under the general economic framework, the assumptions are that natural market forces, such as consumer preferences, will shift the companies to operate with more sustainability and respect for human resources (Ihnatenko et al., 2019). However, the targeted economic development focuses on the key areas of interest, such as job growth, development, and preservation of the environment.

STMicroelectronics’ Relationships and Partnerships

The relationship and partnership network of ST is an extensive one. ST has around 160 partners in regards to R&D and several other partners in STM32 discover pack as a wireless connectivity solution (STMicroelectronics, 2019). In addition, ST has many school partnerships for its STEM education assistance programs across 20 different nations (STMicroelectronics, 2019). The company thoroughly audits all of its suppliers, which means that ST is in a strict business relationship with these businesses (STMicroelectronics, 2019). ST’s engagement channels are comprised of industry associations, such as European associations, international associations, and public as well as private memberships (STMicroelectronics, 2019). The company is tightly partnered with municipalities as well. ST is additionally partnered with other semiconductor manufacturers, such as “ULIS, MicroOled, and Horiba Jobin Yvon IBH Ltd” (STMicroelectronics, 2019, p. 27). When it comes to creating a responsible workplace, ST closely works with the International Organization on Migration (STMicroelectronics, 2019). Many of the waste reduction efforts are successfully completed with the help of numerous local partners (STMicroelectronics, 2019). Therefore, one can see how ST actively works with other entities to ensure the achievement of its sustainability objectives.

The role of government is valuable for ST’s ability to enable sustainability not only in the product lines but the operations as well. For example, the report states that “the Environmental Protection Bureau (EPB) … the government can closely and transparently monitor the site’s wastewater discharge performance” (STMicroelectronics, 2019, p. 64). In other words, ST closely works with the government to select monitoring sites to improve operational sustainability. In the case of increasing workplace safety, it is reported that “all our employees have access to health insurance, either from local government insurance schemes or from ST” (STMicroelectronics, 2019, p. 37). The government helps the company to achieve its goals in all areas of sustainable business framework, including non-product-related human resources.

In response to the extensive help from the government, ST actively engaged in incorporating its goals into the company’s sustainability strategies. For instance, the report states that “ST supports the United Nations Sustainable Development Goals (SDGs)” (STMicroelectronics, 2019, p. 2). Specifically, ST successfully integrated SDGs, such as “good health and well-being, quality education, gender equality, clean water and sanitation, affordable and clean energy, and decent work and economic growth” (STMicroelectronics, 2019, p. 84). In addition, industry innovation and infrastructure, reduced inequalities, responsible consumption and production, and climate action SDGs are included as well.


In conclusion, the assessment revealed that the company is being mostly proactive rather than responding to traditional market demand patterns. It excels in serving its customers and shareholders, and the organization cooperates with its partners closely.


Ihnatenko, M. M., Marmul, L. O., Ushakov, D. S., & Kuchyn, S. P. (2019). Transformation of approaches to determine influence factors in the economic development models. International Journal of Economics & Business Administration, 7(2), 290-301. Web.

Mitchell, M. D., Farren, M. D., Horpedahl, J., & Gonzalez, O. (2020). The economics of a targeted economic development subsidy. Mercatus Research Paper, 1-10. Web.

Otto, S., Strenger, M., Maier-Noth, A., & Schmid, M. (2021). Food packaging and sustainability – Consumer perception vs. correlated scientific facts: A review. Journal of Cleaner Production, 298, 126733. Web.

Petro, G. (2022). Consumers demand sustainable products and shopping formats. Forbes. Web.

STMicroelectronics. (2019). Sustainability report 2019 [PDF document]. Web.

Wijethilake, C. (2017). Proactive sustainability strategy and corporate sustainability performance: The mediating effect of sustainability control systems. Journal of Environmental Management, 196, 569-582. Web.

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