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Social Responsibility

Overview

Kingston Technology Company, Inc. is committed to operating our business in a manner that is Socially and Environmentally Responsible (SER). Over the past 24 years, Kingston has maintained a basic philosophy that centres on the core values of the company: respect, loyalty, integrity, flexibility and adaptability, investing in our employees and having fun at work in the company of friends. These core values also influence our obligations to make a positive difference in the communities in which we operate and to help protect the environment.

Social Responsibility

Kingston's employees are our most important resource. We provide a work environment that is respectful, safe and healthy at all locations based on the OHSAS 18001 management system, for which certification was obtained in June 2004.

In the area of safety, we have implemented accident prevention steps such as risk assessments, occupational health and safety education, and emergency drills at all sites. On the health side, Kingston provides a variety of wellness programmes for our employees. These include health education from healthcare professionals, fitness programmes and wellness newsletters.

Kingston is committed to upholding a culture where diversity is valued and respected. We treat all individuals fairly, in all aspects of employment, without regard to race, colour, national origin, ancestry, religion, sex, gender identity, pregnancy, marital status, actual or perceived sexual orientation, age, physical or mental disability, family care status, veteran status or medical condition, including genetic characteristics. Kingston prohibits discrimination and harassment of individuals on any of the bases listed above, or any other legally-protected basis.

Kingston is dedicated to protecting the rights of employees worldwide, in both policy and practice. We operate in full compliance with applicable local labour laws, including those regarding minimum age, working hours, overtime, wages and benefits, at all Kingston facilities. Employment is voluntary and employees are able to associate freely.

Conflict Minerals

Kingston shares the concern of our customers that the sources of minerals used in the manufacture of our product are not considered "conflict minerals". Conflict minerals pertain to certain minerals (such as tin and gold) that are mined in countries where conditions of armed conflict and human rights abuses are reported to be occurring; most notably in eastern provinces of the Democratic Republic of the Congo (DRC).

Our commitment to address this concern includes a two-step approach.

1) Kingston has taken steps to ensure that the purchased materials used in our manufacturing process (such as solder paste) that contain minerals (such as tin) are free of conflict minerals. Kingston has written assurances from all of its suppliers of metal alloy materials used in the manufacturing process of Kingston products that the sources of such minerals and raw materials are not from the DRC or other nations or regions in violation of human rights.

2) Kingston is also working with our supply chain to ensure that the purchased components used in our products are free of materials containing conflict minerals. We ask that our suppliers support our concern and we are involved in an ongoing effort to collect the necessary supporting data and applicable evidence as part of our due diligence.

Environmental Responsibility

Kingston is doing its part to be a responsible environmental steward. In June 2004, Kingston obtained certification to ISO 14001, which provides guidance in environmental issues. We are operating in ways that are more sensitive to the environment in order to reduce our carbon footprint and disclose our efforts through our participation in the Carbon Disclosure Project. As energy use in our facilities makes up the majority of our carbon footprint, we are researching ways to reduce our energy usage.

We are increasing our recycling efforts at all sites, striving to recycle the majority of the waste generated by our operations. Kingston is the first memory manufacturer to launch an electronics recycling programme for its customers in the USA.

Kingston is making smart and responsible choices in packaging by using more eco-friendly materials and looking for ways to increase our use of post-consumer recycled materials.

Community

Kingston understands its role as a Global Citizen and strives to create positive change whenever we can. With the help of our employees, Kingston participates in endeavours to improve the communities in which we operate, such as contributing to local area food banks, co-sponsoring charitable drives and donating educational equipment to schools.

Kingston Technology has commissioned an emissions audit by an outside firm to determine the amount of carbon dioxide being generated at our Orange County facility. The results of the audit indicate that most of our GHG emissions are indirect emissions from purchased electricity (99.5165%), with the balance (0.4889%) in direct emissions from company vehicle usage and production. Calculations were determined using the IPCC methodology and the USEPA methodology. The data reflects the period from 1 January 2009 to 31 December 2009 for all facilities reported here.

Environmental considerations are set to become an integral part of the professional conduct, practice and ethical considerations that Kingston Technology professionals bring to this organisation.

Carbon Disclosure Project

Kingston Technology commissioned an emissions audit by an outside company to determine the amount of carbon dioxide being generated at its facilities in the US, Taiwan, China and UK. The results of the audit indicate that most of our GHG emissions are indirect emissions from purchased electricity (99.5165%), with the balance (.4889%) in direct emissions from company vehicle usage and production. Calculations were determined using the IPCC methodology and the USEPA methodology. The data reflects the period from 01/01/2012 to 31/12/2012 for all facilities reported here.

Each year, Kingston works to improve the data and scope of the information.

Kingston US Facility

Emission Type Source CO2 Emissions in Tonnes CY 2012
Direct Company Vehicles 12.00
Indirect Purchased Electricity 2.266 thousand

Kingston Taiwan Facility

Emission Type Source CO2 Emissions in Tonnes CY 2012
Direct Company Vehicles 0.01
Indirect Purchased Electricity 9.505 thousand

Kingston Shanghai Facility

Emission Type Source CO2 Emissions in Tonnes CY 2012
Direct Company Vehicles 162.50
Indirect Purchased Electricity 12.543 thousand

Kingston UK Facility

Emission Type Source CO2 Emissions in Tonnes CY 2012
Direct Company Vehicles 0.01
Indirect Purchased Electricity 0.2 thousand

Water Usage

Kingston Technology's total water consumption from our operations is 128.19 megalitres (global site totals for the reporting year of 2012). Approximately 10% of Kingston's production processes utilise water. The majority of water usage is for facility maintenance, caretaking functions and employee use.

Solid Waste

Kingston Technology's global sites for the calendar year 2012 produced 1196.44 metric tonnes of solid waste. Kingston utilises certified recycling organisations to recycle the waste generated in our manufacturing processes, including the passive components, DRAM, PCB boards, plastics and cardboard. Kingston also recycles e-waste and universal waste to reduce the amount of waste deposited in landfills. Kingston (global sites) has set a goal of a 10% reduction of solid waste by Q4 2013.

California Transparency in Supply Chains Act of 2010 (SB 657)

Kingston Technology Company, Inc. and its affiliated company, Kingston Digital, Inc., (collectively referred to as "Kingston") share the concern of our customers that the Kingston products they purchase be procured and manufactured through a supply chain that adheres to laws regarding slave labour or human trafficking. As such, Kingston takes measures to ensure that our direct supply chain for tangible goods offered for sale is in compliance with such applicable laws. In response to the California Transparency in Supply Chains Act of 2010 (SB 657), Kingston has taken the following actions:

Kingston engages in the verification of product supply chains to evaluate and address risks of human trafficking and slavery. Self-assessment questionnaires are sent out to direct suppliers and responses are evaluated. Third-party verifications are not conducted.

Kingston conducts audits of suppliers to evaluate supplier compliance with company standards for trafficking and slavery in supply chains. The audits are arranged and conducted by trained Kingston personnel. Third-party/independent auditors are not used in this process.

Kingston sends our Supplier Code of Conduct and acknowledgment letters to direct suppliers to certify that materials incorporated into the product comply with the laws regarding slavery and human trafficking applicable in the country or countries in which they are doing business.

Kingston maintains internal accountability standards and procedures for employees and contractors that fail to meet company standards regarding slavery and trafficking.

Kingston employees and management who have direct responsibility for supply chain management receive training on the elements of SB 657.