Environmental, Social, and Governance (ESG)
NVE is committed to ensuring
the safety, health, and protection of people and the environment, and to high
standards of ethics and corporate governance.
Products and Research That Enhance the Safety, Health, and Protection of People and the Environment
Our unique products are used to improve the safety of factories, vehicles, equipment, and medical devices, and to make better medical devices. Our products also protect the environment by reducing energy usage, enabling “smart grids” to manage energy, and managing energy conversion and storage. Our research to protect people includes biosensors to improve food safety and faster, more accurate medical tests.
• Environmental
• Social
• Governance
Environmental
Reducing Hazardous Substances
The great majority of the components we sell comply with the Restriction of Hazardous Substances (RoHS) Directive; Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Regulations; and the Waste Electrical and Electronic Equipment (WEEE) Directive. However, we continue to sell non-RoHS parts for U.S. defense and aerospace applications that cannot use RoHS parts. The shipping and packing materials, accessories, and other items delivered with NVE products also conform to the European Union RoHS and China RoHS Directives.
Environmental Compliance Certificate (.pdf)
Halogen-Free Products
Halogens can form dioxins when burned, and dioxins are considered to be likely carcinogens. NVE certifies that, to the best of our knowledge, our products comply with the halogen-free requirements adopted by the International Electrotechnical Commission (IEC).
Energy Conservation
An expansion in 2012 included more efficient heating, air-conditioning, humidity control, filtration, and pumps. These investments reduced our carbon footprint as well as our operating costs. We also upgraded to more efficient heating, air conditioning, air-handling, and water-heating modules from 2015 through 2018.
Green Electricity
Our electricity provider, Xcel Energy, reported its electricity was 53% carbon-free in 2022, compared to an average of 41% nationwide. It plans to reduce carbon emissions 80% by 2030, on the way to delivering 100% carbon-free electricity by 2050.
Recycling
NVE complies with applicable environmental laws and regulations, particularly for industrial waste and emissions. We recycle byproducts of our manufacturing processes wherever practical. We also recycle shipping materials, office paper, and aluminum cans. We comply with Hennepin County business recycling requirements, including pairing recycling bins with trash bins.
Supporting the Sustainable Forestry Initiative
Where possible we use office paper and packaging materials certified by the Sustainable Forestry Initiative® (“SFI”). The SFI Standard is based on principles and measures that promote sustainable forests and considers all forest values. We recycle unneeded electronics using environmentally sound recycling practices, and periodically offer employees free recycling of their hazardous waste and unneeded personal electronics.
Sustainable Transportation
NVE is accessible by public transportation and bicycling. We provide accommodations for employees who bicycle to work. There are homes, apartments, and restaurants within walking distance.
Sustainable Coffee
Our coffee service provides sustainably-grown coffees with certifications including Fair Trade, Rain Forest Alliance, and UTZ Kapeh. We provide employees and visitors stylish ceramic coffee cups to avoid Styrofoam waste.
Sustainable Shareholder Communications
In 2007, NVE was one of the first publicly-traded companies to adopt Notice and Access (“e-Proxy”) procedures that allow companies to provide proxy materials to shareholders through the Internet. This reduces environmental impact by saving trees and reducing fossil fuel consumption. Annual reports and proxy statements we are required to mail use SFI-certified paper.
Oversight for Climate-related Policies
Our Board oversees our climate-related policies and our management reviews our climate-related policies and our climate risks with the Board at least annually.
Task Force on Climate-Related Financial Disclosures (TCFD) Report
Social
Diversity, Equity, Inclusion, and Accessibility (DEIA)
We have policies to prevent discrimination based on gender, race, disability, ethnicity, nationality, religion, sexual orientation, gender identity, or gender expression.
Affirmative Action
We have a written Affirmative Action program that complies with Executive Order 11246 concerning government contractors. Under our program, we take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. We also take Affirmative Action to employ and advance veterans in employment.
Discrimination
We do not discriminate based on gender expression and do not tolerate harassment or discrimination. We have designated several gender-neutral bathrooms with gender-neutral signage.
Board Diversity
We disclose the gender identity, race and ethnicity of our directors.
There has been a woman on NVE’s Board since 2004. We comply with NASDAQ Rules that will be effective December 31, 2023, relating to board diversity.
The company has been recognized as a ‘W’ Company by Women on Boards for its commitment to board diversity.
Employee Diversity
NVE was listed as the Best Technology Company to Work for in Eden Prairie for 2018 by Zippia, based on criteria including employee diversity.
Affirmative Action
We have a written Affirmative Action program that complies with Executive Order 11246 concerning government contractors. Under our program, we take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. We also take Affirmative Action to employ and advance veterans in employment.
Accessibility
Although our building predates the Americans With Disabilities Act of 1990, we have upgraded our facility for accessibility and to comply with the ADA. Our restrooms are ADA compliant.
Supporting Women and Families
In addition to our Antidiscrimination Policies and Affirmative Action Program, we provide employees protections in accordance with the Minnesota Women’s Economic Security Act of 2014, including:
Supporting Employees’ Health
We offer employees free annual Health Risk Assessments, wellness programs, and financial incentives for healthy biometrics.
Governance
High Marks for Governance
NVE’s ISS QualityScore is in the top 20% of scored companies.
Respecting Rules and Ethics
Our Policy on Ethics and Business Conduct requires adherence to the letter and spirit of all applicable governmental laws, rules, and regulations. We also have an explicit principle that we will not tolerate bribery.
Respecting Embargoes
We do not export to countries designated by the U.S. Department of State as “State Sponsors of Terrorism,” or subject to other trade embargoes. Countries currently designated as State Sponsors of Terrorism are Iran, Sudan, and Syria. Other sanctions apply to North Korea, Cuba, and Burma. We also have policies and procedures to respect the Commerce Department Entity List “blacklist.”
Avoiding Conflict Minerals
Our policy is that we will not knowingly purchase raw material supplies that contain conflict minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or an adjoining country. Our policy is to take continuous practical action to seek to ensure that materials from the conflict region do not enter our supply chain or products.
Conflict Minerals Report
Cybersecurity
As disclosed in our Proxy Statement, we operate under written cybersecurity policies and procedures, and we use a risk-based approach to information security and periodically assess our cybersecurity risks. We internally audit to information security standards. We have information security training and compliance programs, develop and implement actions to correct deficiencies and reduce or eliminate vulnerabilities, and have formal cybersecurity contingency plans. New employees are required to complete information security training, and all employees must complete information security training annually.
Products and Research That Enhance the Safety, Health, and Protection of People and the Environment
Our unique products are used to improve the safety of factories, vehicles, equipment, and medical devices, and to make better medical devices. Our products also protect the environment by reducing energy usage, enabling “smart grids” to manage energy, and managing energy conversion and storage. Our research to protect people includes biosensors to improve food safety and faster, more accurate medical tests.
• Environmental
• Social
• Governance
Environmental
Reducing Hazardous Substances
The great majority of the components we sell comply with the Restriction of Hazardous Substances (RoHS) Directive; Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Regulations; and the Waste Electrical and Electronic Equipment (WEEE) Directive. However, we continue to sell non-RoHS parts for U.S. defense and aerospace applications that cannot use RoHS parts. The shipping and packing materials, accessories, and other items delivered with NVE products also conform to the European Union RoHS and China RoHS Directives.
Environmental Compliance Certificate (.pdf)
Halogen-Free Products
Halogens can form dioxins when burned, and dioxins are considered to be likely carcinogens. NVE certifies that, to the best of our knowledge, our products comply with the halogen-free requirements adopted by the International Electrotechnical Commission (IEC).
Energy Conservation
An expansion in 2012 included more efficient heating, air-conditioning, humidity control, filtration, and pumps. These investments reduced our carbon footprint as well as our operating costs. We also upgraded to more efficient heating, air conditioning, air-handling, and water-heating modules from 2015 through 2018.
Green Electricity
Our electricity provider, Xcel Energy, reported its electricity was 53% carbon-free in 2022, compared to an average of 41% nationwide. It plans to reduce carbon emissions 80% by 2030, on the way to delivering 100% carbon-free electricity by 2050.
Recycling
NVE complies with applicable environmental laws and regulations, particularly for industrial waste and emissions. We recycle byproducts of our manufacturing processes wherever practical. We also recycle shipping materials, office paper, and aluminum cans. We comply with Hennepin County business recycling requirements, including pairing recycling bins with trash bins.
Supporting the Sustainable Forestry Initiative
Where possible we use office paper and packaging materials certified by the Sustainable Forestry Initiative® (“SFI”). The SFI Standard is based on principles and measures that promote sustainable forests and considers all forest values. We recycle unneeded electronics using environmentally sound recycling practices, and periodically offer employees free recycling of their hazardous waste and unneeded personal electronics.
Sustainable Transportation
NVE is accessible by public transportation and bicycling. We provide accommodations for employees who bicycle to work. There are homes, apartments, and restaurants within walking distance.
Sustainable Coffee
Our coffee service provides sustainably-grown coffees with certifications including Fair Trade, Rain Forest Alliance, and UTZ Kapeh. We provide employees and visitors stylish ceramic coffee cups to avoid Styrofoam waste.
Sustainable Shareholder Communications
In 2007, NVE was one of the first publicly-traded companies to adopt Notice and Access (“e-Proxy”) procedures that allow companies to provide proxy materials to shareholders through the Internet. This reduces environmental impact by saving trees and reducing fossil fuel consumption. Annual reports and proxy statements we are required to mail use SFI-certified paper.
Oversight for Climate-related Policies
Our Board oversees our climate-related policies and our management reviews our climate-related policies and our climate risks with the Board at least annually.
Task Force on Climate-Related Financial Disclosures (TCFD) Report
Social
Diversity, Equity, Inclusion, and Accessibility (DEIA)
We have policies to prevent discrimination based on gender, race, disability, ethnicity, nationality, religion, sexual orientation, gender identity, or gender expression.
Affirmative Action
We have a written Affirmative Action program that complies with Executive Order 11246 concerning government contractors. Under our program, we take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. We also take Affirmative Action to employ and advance veterans in employment.
Discrimination
We do not discriminate based on gender expression and do not tolerate harassment or discrimination. We have designated several gender-neutral bathrooms with gender-neutral signage.
Board Diversity
We disclose the gender identity, race and ethnicity of our directors.
There has been a woman on NVE’s Board since 2004. We comply with NASDAQ Rules that will be effective December 31, 2023, relating to board diversity.
The company has been recognized as a ‘W’ Company by Women on Boards for its commitment to board diversity.
Employee Diversity
NVE was listed as the Best Technology Company to Work for in Eden Prairie for 2018 by Zippia, based on criteria including employee diversity.
Affirmative Action
We have a written Affirmative Action program that complies with Executive Order 11246 concerning government contractors. Under our program, we take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. We also take Affirmative Action to employ and advance veterans in employment.
Accessibility
Although our building predates the Americans With Disabilities Act of 1990, we have upgraded our facility for accessibility and to comply with the ADA. Our restrooms are ADA compliant.
Supporting Women and Families
In addition to our Antidiscrimination Policies and Affirmative Action Program, we provide employees protections in accordance with the Minnesota Women’s Economic Security Act of 2014, including:
| • | We provide reasonable accommodations to employees for health conditions related to pregnancy or childbirth. | |
| • | We make hiring, promotion, and termination decisions regardless of an employee’s familial status. | |
| • | We provide up to 12 weeks of pregnancy/parental leave. |
Supporting Employees’ Health
We offer employees free annual Health Risk Assessments, wellness programs, and financial incentives for healthy biometrics.
Governance
High Marks for Governance
NVE’s ISS QualityScore is in the top 20% of scored companies.
Respecting Rules and Ethics
Our Policy on Ethics and Business Conduct requires adherence to the letter and spirit of all applicable governmental laws, rules, and regulations. We also have an explicit principle that we will not tolerate bribery.
Respecting Embargoes
We do not export to countries designated by the U.S. Department of State as “State Sponsors of Terrorism,” or subject to other trade embargoes. Countries currently designated as State Sponsors of Terrorism are Iran, Sudan, and Syria. Other sanctions apply to North Korea, Cuba, and Burma. We also have policies and procedures to respect the Commerce Department Entity List “blacklist.”
Avoiding Conflict Minerals
Our policy is that we will not knowingly purchase raw material supplies that contain conflict minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or an adjoining country. Our policy is to take continuous practical action to seek to ensure that materials from the conflict region do not enter our supply chain or products.
Conflict Minerals Report
Cybersecurity
As disclosed in our Proxy Statement, we operate under written cybersecurity policies and procedures, and we use a risk-based approach to information security and periodically assess our cybersecurity risks. We internally audit to information security standards. We have information security training and compliance programs, develop and implement actions to correct deficiencies and reduce or eliminate vulnerabilities, and have formal cybersecurity contingency plans. New employees are required to complete information security training, and all employees must complete information security training annually.