Environmental, Social, and Governance

At Arrow, making life better with technology is good for business and our global community. Applying the power of technology and innovation to address the world’s economic, social, and environmental challenges continues to drive enhancements to our product suite, expansions to our customer and supplier roster, and increased value for our shareholders.

To learn more about our commitment to responsible environmental, social, and governance (ESG) practices, including our progress to date and future goals, we invite you to download our ESG Report.

We enable technology solutions that make a positive difference in people’s lives; we guide the power of innovation to make the world better.

- Sean J. Kerins, President and Chief Executive Officer

2022 ESG Goals & Results

Our 2022 goals underscored our commitment to managing our ESG impact. Six of these goals are specified below.

Environmental goals

GOAL 1: Reduce our Scope 1 and 2 emissions across our Phase 1 controlled* footprint by 10% in 2022.

Result: Overachieved Goal
Reduced Scope 1 and 2 emissions across our Phase 1 controlled* footprint by 29.4%, exceeding the target of 10% reduction by 19.4 percentage points.


GOAL 2: Achieve ISO 14001 and ISO 50001 (environmental management) certifications for our largest North American distribution center.

Result: Achieved Goal
ISO 14001 and ISO 50001 (environmental management) certifications received effective December 2022 for our largest North American distribution center.

*Phase 1 Controlled represents 37% of our overall footprint by square footage as of December 2022.

Social goals

GOAL 1: Grow representation of women leaders globally and leaders who are of underrepresented race/ethnicity in the U.S. by 0.5 percentage points in each category in 2022, and by two percentage points in each category by the end of 2025.

Result: Overachieved Goal
Grew representation of women leaders globally by 1.5 percentage points, exceeding the target of 0.5 percentage point growth by 1.0 percentage points. Grew representation of leaders who are of underrepresented race/ethnicity in the U.S. by 1.3 percentage points, exceeding the target of 0.5 percentage point growth by 0.8 percentage points.


GOAL 2: Complete our global pay equity analysis and adjust pay where appropriate to close any gaps.

Result: Achieved Goal
As of December 31, 2022, completed pay gap analyses for countries with a population of 100 or more employees representing 96.5% of our global employee population and made adjustments to close gaps.

Governance goals

GOAL 1: Increase the average completion rate for compliance trainings from 95% to 96%.

Result: Overachieved Goal
Grew online compliance training completion rate from 95% to 99%, exceeding the target of 1.0 percentage point growth by 3.0 percentage points.


GOAL 2: Convene an internal cross-functional ESG Leadership Committee responsible for guiding ESG strategy and related performance.

Result: Achieved Goal
Convened multiple meetings and initiated an operating cadence for an ESG cross functional (a) leadership team and (b) operating committee to inform ESG strategy and enact operational execution.

2022 ESG Overview

Arrow is committed to reducing greenhouse gas emissions in the fight against global climate change.

Environmental Compliance

To date, 11 of Arrow’s sites across the global meet ISO 14001 (Environmental Management) certification requirements, and two sites are certified to ISO’s 50001:2018 standards.

 

Sustainable Priorities

Arrow continued investing in our priority areas of environmental management in 2022:

 

Energy Use and Emissions

Arrow committed to reducing greenhouse gas emissions in the fight against global climate change.

Arrow’s steadfast focus on growing the diversity of our employees is matched by our commitment to achieve and maintain global pay equity.

Workforce at a Glance

22,000+
Global employees
300
Locations
220+
Sales locations
43
Distribution and value-added centers
90+
Countries served
54
Countries with employees

Diversity and Inclusion

¹The global women benchmark is determined by using calculations based on Arrow’s global occupation distribution and data sourced from the ILOSTAT database (Labor force, female (% of total labor force) | Data (worldbank.org), retrieved February 8, 2022) and Lightcast Q3 2022 QCEW occupation tables). The benchmark for gender decreased this year due to an overall decrease in gender across occupations, and an increase at Arrow of occupations with lower average gender share.
² Benchmark is determined by using calculations based on Arrow’s global occupation distribution and data sourced from the ILOSTAT database (Labor force, female (% of total labor force) | Data (worldbank.org), retrieved February 8, 2022) and Lightcast Q3 2022 QCEW occupation tables).

Global Pay Equity

Arrow’s steadfast focus on growing the diversity of our employees is matched by our commitment to achieve and maintain global pay equity among our employees and rewarding employees fairly, both of which are core compensation principles at Arrow.

2022 Pay Equity

$1.00 At Arrow facilities in the U.S. and Canada, women currently earn $1.00 for every $1.00 earned by men in similar roles.
$0.94-$1.02
At Arrow facilities in other countries with a population of 100+, women currently earn between $0.94 and $1.02 for every $1.00 earned by men in similar roles.
$1.01 Employees of underrepresented race/ethnicity in the U.S. and Canada earn $1.01 for every $1.00 earned by their white colleagues in similar roles.

We Are Arrow. Inclusion Principles:

It is because of our goodwill and willingness to take in and act upon the multiple perspectives our team embodies that we are…

Arrow’s Board and the Corporate Governance Committee have direct oversight of, and are committed to, advancing our ESG policies and practices.

ESG Governance Structure

Arrow’s Board and the Corporate Governance Committee have direct oversight of, and are committed to, advancing our ESG policies and practices, as outlined in its committee charter. The Committee and Arrow senior leadership have a direct line to ESG subject matter experts and external consultants to inform and evolve practices and improve performance.

 

Guiding Principles and Policies

2023 ESG Goals

Our 2023 goals continue to underscore our commitment to managing our ESG impact. Six of these goals are specified below.

Environmental goals

GOAL 1: Continue to reduce Scope 1 and 2 emissions in 2023, supporting our multi-year goal to reduce Scope 1 and 2 emissions by 10% across all Arrow locations and fleet by the end of 2025.


GOAL 2: Baseline three categories of Scope 3 emissions as a next step to enable setting targets aligned with the Science-Based Targets initiative (SBTi) by the end of 2025.

Social goals

GOAL 1: Continue to grow representation of women leaders globally and leaders who are of underrepresented race/ethnicity in the U.S. in 2023, supporting our multi-year goal to grow representation by two percentage points in each category by the end of 2025.


GOAL 2: Continue ongoing global pay equity analysis and adjust pay where appropriate to close any pay equity gaps.

Governance goals

GOAL 1: Reaffirm Arrow’s strategic partners’ commitment to the principles of Arrow’s Supplier Business Code of Conduct by end of 2023.


GOAL 2: Ensure that Arrow’s top suppliers complete a supplier self-assessment and due diligence questionnaire by the end of 2023.

Previous ESG Reports

2021 ESG Report (PDF)

Join us

Technology alone won’t solve the world’s most pressing environmental and social challenges. Innovation is powered by people. It takes human ingenuity and collaboration to craft solutions.

We’re a team of many backgrounds in a global ecosystem, working toward one common goal: to help customers create a better tomorrow, where innovation improves quality of life and the benefits of technology are more accessible to all.

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We seek to provide clarity and transparency across all our reporting channels and intend to evolve our ESG reporting practices to best manage the impacts of our operations and meet stakeholder expectations.

For inquiries regarding Arrow’s ESG Report, please email ESG@arrowelectronics.com.au