Valens Links Connectivity Tech to Sustainability in New ESG Report

HOD HASHARON, Israel – December 29, 2025 – Valens Semiconductor (NYSE: VLN), a key player in the high-performance connectivity market, today released its fourth annual Environmental, Social, and Governance (ESG) Report, outlining the company's 2024 progress in integrating sustainable practices into its operations and product philosophy.

The report details a multi-faceted approach to corporate responsibility, emphasizing tangible gains in environmental metrics while reinforcing the company's commitment to ethical governance and social impact. It positions Valens not just as a participant in the global push for sustainability, but as an enabler of it through its core technology.

"We are pleased to share Valens Semiconductor's fourth annual ESG Report, which provides an update on our ongoing commitment to our key ESG initiatives and the progress we achieved in 2024," said Yoram Salinger, CEO of Valens Semiconductor. "We are dedicated to advancing core ESG principles that guide our operations and support stakeholder expectations."

Reducing the Operational Footprint

A central theme of the 2024 report is the company's success in shrinking its own environmental footprint. According to the announcement, Valens has made significant strides in key operational areas. The company highlighted improved energy efficiency across its facilities, leading to a measurable reduction in both overall electricity consumption and the associated greenhouse gas (GHG) emissions.

Specifically, Valens reported a decrease in its combined Scope 1 and Scope 2 GHG emissions. For a fabless semiconductor company, which designs chips but outsources the manufacturing, this is a noteworthy achievement. Scope 1 emissions cover direct sources owned by the company, while Scope 2 encompasses indirect emissions from the generation of purchased electricity. Reducing Scope 2 emissions points to a concerted effort in energy conservation and potentially a shift toward cleaner energy sources in its power-intensive design and testing labs.

Furthermore, the report details an expansion of the company's electronic waste (e-waste) recycling programs. In an industry that is at the very beginning of the consumer electronics lifecycle, addressing e-waste is a critical component of corporate stewardship. By focusing on recycling, Valens demonstrates a commitment to the circular economy and an acknowledgment of its responsibility in mitigating one of the fastest-growing waste streams in the world. These efforts, as Salinger noted, represent significant progress in the company's journey toward a more sustainable operational model.

A Foundation of Ethical Governance and Social Responsibility

Beyond environmental metrics, the report underscores the importance of the social and governance pillars that form the bedrock of Valens' ESG strategy. The company is framing its commitment to ethical practices and stakeholder well-being as essential for long-term business growth and resilience.

"Our 2024 ESG Report highlights our commitment to ethical and transparent governance while supporting continued business growth," stated Igal Rotem, Chairman of Valens Semiconductor's Nominating, Governance, and Sustainability Committee. This focus on governance is crucial in the high-tech sector, where intellectual property, supply chain integrity, and data security are paramount. Transparent communication with shareholders, customers, and partners, as mentioned in the release, builds the trust necessary to navigate a complex global market.

Rotem also emphasized the company's dedication to "promoting a healthier environment, employee well-being, and community engagement." In the fierce competition for engineering and technology talent, fostering a supportive and inclusive workplace is a strategic imperative. This includes investing in professional development, ensuring a healthy work-life balance, and building a diverse team. Community engagement, particularly for a company based in a tech hub like Hod Hasharon, often translates to supporting local STEM education programs and participating in community-based environmental initiatives, strengthening the ecosystem in which the company operates.

The Ripple Effect: How Valens' Technology Enables Sustainability

Perhaps the most compelling aspect of Valens' ESG narrative is the link between its products and their potential for a positive environmental impact. The company's mission is to develop cutting-edge chipsets that enable robust, ultra-high-performance wired connectivity over simple, cost-effective infrastructure. This principle of simplification and efficiency has inherent sustainability benefits.

Valens' technology is a foundational element for industry standards like HDBaseT and MIPI A-PHY, both of which are designed to reduce complexity and material usage. HDBaseT, for example, allows the transmission of uncompressed ultra-high-definition video, audio, power, Ethernet, and control signals over a single, standard LAN cable. This consolidation eliminates the need for multiple, bulky, and often proprietary cables, reducing material consumption, installation complexity, and eventual waste in professional audio-video installations and next-generation videoconferencing systems. By enabling more reliable and higher-quality remote collaboration, this technology also helps reduce the need for business travel, a significant source of carbon emissions.

In the automotive sector, Valens' technology is critical for the evolution of Advanced Driver-Assistance Systems (ADAS) and autonomous driving. The MIPI A-PHY standard, which Valens champions, provides a highly reliable, high-speed link for cameras, sensors, and displays within a vehicle. It is designed to replace older, heavier cabling solutions with a lightweight, simplified wiring architecture. Reducing the weight and complexity of a vehicle's wiring harness directly contributes to greater efficiency—improving the fuel economy of traditional combustion engines and extending the range of electric vehicles. As vehicles become more data-intensive, this efficiency is not a minor tweak but a fundamental enabler of next-generation automotive design.

By creating chips that power these more efficient systems, Valens is creating a ripple effect. Its sustainability impact extends beyond its own factory walls and into the countless devices and vehicles where its technology is deployed. The full report, made available to the public through the company's investor relations website, provides a detailed look at how Valens is pursuing this dual strategy of internal improvement and external enablement.