Supply Chain

Engaging with Suppliers on Sustainability Cadence is an Affiliate Member of the Responsible Business Alliance (RBA) and fully supports RBA's vision of a global electronics industry that creates sustainable value for workers, the environment, and businesses. RBA members, suppliers, and stakeholders collaborate to improve working and environmental conditions through leading standards and practices. With the approach of continuous improvement and in the spirit of the industry's common code of conduct goals, we commit to progressively align our operations with the provisions of the RBA Code of Conduct, and to support and encourage our suppliers to do the same.

Supply Chain Partners Our supply chain is divided between spend for goods and services that are either directly incorporated into our manufactured products (direct) or goods and services that are not incorporated into our manufactured products (indirect). We partner with trusted suppliers who supply us with products and services that support our operations, such as: • Computer, electrical, and office equipment • Telecommunications, shipping, and postal services • Financial intermediation, professional services, real estate activities, and data centers • Travel, hotels, and restaurants In 2019, we obtained ISO 9000 Certification for our Hardware System Verification (HSV) operations, including oversight and management of manufacture and services of enterprise emulation platforms. We are endeavoring to extend the rigorous governance standards discussed in this report to our partners with whom we do business. In 2020, we plan to share our Supplier Code of Conduct with our suppliers and activate a supplier sustainability program to expand our engagement activities with key stakeholders in our value chain.

Human Rights in the Supply Chain We believe that no individual should be subjected to any form of forced labor, slavery or human trafficking, and we will take necessary steps to prevent forced labor, slavery or human trafficking from existing within Cadence and to reduce the possibility of forced labor, slavery, or human trafficking taking place in our supply chains, by requiring our new suppliers and partners to be bound by obligations to comply with all applicable laws. Cadence is also committed to responsible sourcing of materials for its products and seeks to avoid the use of Conflict Minerals (tin, tungsten, tantalum and gold) sourced from the Democratic Republic of the Congo and adjoining countries that may directly or indirectly finance or benefit armed groups that engage in human rights abuses. We also support industry efforts, such as the Conflict Free Sourcing Initiative, to enable companies to source conflict-free minerals. And, we expect the same from our suppliers. We set forth our expectations for our suppliers in our Conflict Minerals Policy Statement located on our website at http://conflictminerals.cadence.com.