2023 CORPORATE RESPONSIBILITY REPORT

POWERING INNOVATION THAT DRIVES HUMAN ADVANCEMENT

/ CONTENTS

A Message from Our President and CEO

3

About Ansys

4

Our Mission

5

Industries and Products

6

Corporate Responsibility at Ansys

7

Advancing Sustainability through our Products

9

Product Handprint

10

Innovation and Product Strategy

14

Customer Excellence

16

Investing in our People and ONE Ansys Culture

17

Culture of Inclusion and Belonging

18

Attracting and Retaining Talent

21

Employee Benefits, Well-Being, and Support

21

Employee Development and Engagement

22

Operating Responsibly

23

Environmental Sustainability

23

Data Centers and E-Waste

26

Ethics, Compliance, and Integrity

27

Cybersecurity and Data Privacy

28

Governance

31

Other Policies and Resources

31

Collaborating with Stakeholders

32

Community Relations

32

Academic and STEM Education

33

Appendix

34

Sustainability Accounting Standards Board Index

34

Task Force on Climate-Related Financial Disclosures

36

This document contains forward-looking statements, and actual results could differ materially. See "Cautionary Statement Regarding Forward-Looking Statements." Risk factors that could cause actual results to differ are set forth in the "Risk Factors" section of our most recent Annual Report and Form 10-K and other filings and submissions that we make with the U.S. Securities and Exchange Commission (SEC).

This document does not cover all information about our business. The inclusion of information or references in this report, including the use of "materiality" or similar terms, should not be construed as a characterization regarding the materiality of such information to our business or financial results or that such information is necessarily material to investors or other stakeholders for purposes of U.S. federal securities laws.

The goals, targets and commitments presented in this document are aspirational and not guarantees or promises that such goals, targets, or commitments will be achieved. In addition, historical, current, and forward-looking information included in this document may be based on standards and practices for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change. Accordingly, such historical, current and forward-looking information or underlying assumptions may be subject to modifications in future reports due to such developing standards, practices and controls and processes.

Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries located in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

CORPORATE RESPONSIBILITY // 2

A MESSAGE FROM OUR PRESIDENT AND CEO

For more than 50 years, Ansys has powered innovation that drives human advancement. Our incredible team of more than 6,000 employees worldwide is laser-focused on this mission every day. In 2023, we continued driving progress in our four key sustainability pillars - clean environment, materials and circularity, energy solutions, and manufacturing and operational efficiency. Using Ansys solutions, our global customers are developing more energy- and fuel-efficient engines, turning recycled waste into automotive components, advancing

healthcare breakthroughs and so much more. In short, Ansys helps our visionary customers assess and scale their sustainable innovations faster, maximizing their impact.

While we continue to advance sustainability through our products, we're also committed to driving progress within our own operations. Ansys operates responsibly, through investing in our people and our ONE Ansys culture and by collaborating with our global stakeholders. In 2022, we announced our goal to reduce our scope 1 and scope 2 emissions by 15% against our 2019 baseline. I'm excited to share that we have already exceeded this goal and have reduced our scope 1 and scope 2 emissions by 42% against our 2019 baseline. This progress is due to a continued focus on energy efficiency and optimization in our facilities, energy sourcing strategies, and greater employee awareness and involvement.

Throughout 2023, we continued to build upon our ONE Ansys culture, bringing our values of adaptability, courage, generosity, and authenticity to the forefront in how we work every day. These values help us to create a culture where everyone can bring their most authentic selves to work and where innovation can thrive. We see our values at work through our employee resource groups, academic and STEM outreach, talent pipeline development, and community outreach efforts.

I'M PROUD OF THE PROGRESS WE MADE IN 2023. AS WE LOOK FORWARD TO THE FUTURE, WE REMAIN COMMITTED TO ADVANCING SUSTAINABILITY THROUGH OUR PRODUCTS AND SOLUTIONS, OPERATING RESPONSIBLY, INVESTING IN OUR PEOPLE AND ONE ANSYS CULTURE, AND COLLABORATING WITH OUR GLOBAL STAKEHOLDERS TO POWER INNOVATION THAT DRIVES HUMAN ADVANCEMENT.

Ajei Gopal

President and

Chief Executive Officer

CORPORATE RESPONSIBILITY // 3

  • ABOUT ANSYS

Ansys is the leader in engineering simulation software. We help visionaries solve the world's most complex and meaningful problems. By offering a broad portfolio of engineering simulation software, we help innovative companies accelerate the creation of more efficient and longer lasting products at a lower cost.

Our deep simulation capabilities span the physics of structures, fluids, and electromagnetics as well as areas like semiconductors, photonics, embedded software, and materials. We connect those physics across disciplines and departments with solutions for simulation product data management (SPDM), optimization, and model-based systems engineering (MBSE). To amplify the benefits of simulation, we augment our technologies with artificial intelligence and make them accessible via the cloud to improve engineering efficiency, support collaboration, and accelerate innovation. Our solutions can predict real-world product behavior - a result of our decades of experience in helping customers tackle their product challenges.

OUTCOMES OUR CUSTOMERS REALIZE FROM ANSYS SOLUTIONS

Engineers can see how their designs will - or won't - behave in millions of real-world scenarios,

while reducing or even eliminating the need for costly physical testing.

DIGITAL

TRANSFORMATION

RISK PREDICTION AND MITIGATION

INCREASED

EFFICIENCY AND

PRODUCTIVITY

FASTER INNOVATION, LOWER CYCLE TIMES, REDUCED RISKS, INCREASED QUALITY, MANAGED COMPLEXITY

And the team members developing these solutions and advising our customers are among the most talented in the industry - with years of experience in helping innovative organizations spur innovation, drive down costs, and grow the top line.

GLOBAL

PROVEN

FOCUSED

6,200 full-time employees

~$31.5 billion market

Simulation is what we do

across 97 offices

capitalization

(AS OF DECEMBER 31, 2023)

(AS OF DECEMBER 31, 2023)

CORPORATE RESPONSIBILITY // 4

  • OUR MISSION

Powering Innovation That Drives Human Advancement

When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality using Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push the boundaries of product design by using the predictive power of simulation. From sustainable transportation and advanced satellite systems to life-saving medical devices, Ansys powers innovation that drives human advancement.

  • OUR COMMITMENT

Amaze with innovative products and solutions

Act with integrity

Make our customers incredibly successful

Ensure employees thrive and shareholders prosper

  • OUR VALUES

ADAPTABILITY

COURAGE

GENEROSITY

AUTHENTICITY

Our business is

constantly evolving.

We stay agile by

keeping our minds open, embracing change, and always learning.

Our growth is

unconstrained. We pursue new ideas, find unconventional solutions, and make decisions with courage, compassion, and resilience.

We give our time,

resources, and

knowledge for the

betterment of all. We serve each other, our customers, partners, and communities with humility.

Our diverse perspectives

solve problems. We grow as a team by empowering each other and respecting our individual strengths and differences.

/ OUR ACTIONS

Commit to audacious goals

Work seamlessly as a team

Plan and set highly ambitious objectives focused

Focus on common priorities and opportunities. Share wins

on what matters most.

and never let a teammate fail.

Demonstrate mastery

Deliver outstanding results

Meet challenges by pursuing the highest levels of mastery

Drive for results with speed and passion. Embrace deep

in our field. Mastery is grounded in knowing the details.

ownership and accountability.

CORPORATE RESPONSIBILITY // 5

  • OUR INDUSTRIES

AEROSPACE

AUTOMOTIVE

CONSTRUCTION

CONSUMER

TRANSPORTATION

PRODUCTS

& MOBILITY

DEFENSE

ENERGY

HEALTHCARE

HIGH-TECH

INDUSTRIAL

MATERIALS & CHEMICALS

ACADEMICS

EQUIPMENT

PROCESSING

  • OUR PRODUCT COLLECTION

3D DESIGN

DIGITAL MISSION

FLUIDS

CONNECT

ENGINEERING

ACOUSTICS

DIGITAL TWIN

MATERIALS

SAFETY ANALYSIS

ADDITIVE

ELECTRONICS

OPTICS

SEMICONDUCTORS

MANUFACTURING

AUTONOMOUS

EMBEDDED

CLOUD

STRUCTURES

VEHICLES

SOFTWARE

CORPORATE RESPONSIBILITY // 6

  • CORPORATE RESPONSIBILITY AT ANSYS

2023 Highlights

  • Newsweek's Global Most Loved Workplaces: Ansys recognized on Newsweek's Global Most Loved Workplaces for 2023
  • Newsweek's America's 100 Most Loved Workplaces: Ansys recognized on Newsweek's America's Most Loved Workplaces for 2023
  • Newsweek's America's Most Responsible Companies: Ansys recognized on Newsweek's America's Most Responsible Companies List for 2024
  • Great Place to Work: Ansys received multiple Great Place to Work awards spanning across regions
  • USA Today's America's Climate Leaders 2023 List
  • Women of Color STEM Awards: 2 Ansys engineers named Technology Rising Stars and one Ansys engineer named a Technology All-Star
  • As of 2023, Ansys received an MSCI ESG Rating of AA

THE USE BY ANSYS OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ("MSCI") DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF ANSYS BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS AND ARE PROVIDED 'AS- IS' AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

CORPORATE RESPONSIBILITY // 7

Strategy and Vision

We are focused on a sustainable future, through our own environmental, social, and governance (ESG) objectives and by supporting our customers and partners in achieving their sustainability objectives. Our ESG Program is divided into four distinct pillars, and our products and solutions-focused sustainability committee supports our customers and partners in using simulation to achieve their sustainability objectives. Our products and solutions are used by customers across numerous industry sectors, so we have divided our sustainability focus areas into four pillars.

Ansys' ESG Program Pillars:

ADVANCING SUSTAINABILITY

INVESTING IN OUR PEOPLE

OPERATING

COLLABORATING

THROUGH OUR PRODUCTS

AND ONE ANSYS CULTURE

RESPONSIBLY

WITH STAKEHOLDERS

Sustainability-Focused Products and Solutions Pillars:

CLEAN ENVIRONMENT

MATERIALS & CIRCULARITY

ENERGY SOLUTIONS

MANUFACTURING &

OPERATIONAL EFFICIENCY

Materiality Assessment1

To build on our strategy development and one of our ESG pillars, Collaborating with Stakeholders, we conducted a materiality assessment with an external consultant in 2022. Materiality assessments help companies identify, prioritize, and strategize relevant ESG topics that can have an impact on society, the environment, and their business. The list of topics used in the assessment was created by conducting internal business research and external research and benchmarking, including relevant frameworks.

Accessibility

• Global Diversity and Inclusion

• Board Compensation, Independence, and Diversity

• Innovation and Digitalization

• Business Resilience and Adaptation

• Intellectual Property Rights

• Community Education, Development, and Impact

• Public Policy Engagement

• Data Protection and Security

• Responsible Procurement

Decent Work

• Responsible Product Use

• Employee Health, Safety, and Wellness

• Talent Acquisition, Retention, Development, and Growth

Energy and Climate

• Tech Solutions for Societal Challenges (Product Handprint)

• Ethical Business Practices and Compliance

• Water and Waste Management

The primary inputs to the assessment were a series of internal and external interviews conducted with key stakeholders. These interviews were also supplemented with an online employee survey deployed across all main functional areas at Ansys. The issues were then scored based on their relative impact on society and the environment and their impact on the business.

Lastly, we validated the outcomes of the assessment with a workshop with our internal subject matter expert interviewees, where the assessment results were affirmed. We will use this assessment to inform our reporting and strategy, along with setting goals and metrics around the priority materiality topics. We will periodically refresh the assessment moving forward.

1 Our Corporate Responsibility Report details the topics we consider to be most important to our stakeholders when evaluating ESG issues at Ansys. References to materiality refer to such terms in the context of ESG reporting and strategy and does not directly correspond to the concept of materiality used in securities law.

CORPORATE RESPONSIBILITY // 8

  • ADVANCING SUSTAINABILITY THROUGH OUR PRODUCTS

At Ansys, we help our customers advance environmental objectives through our simulation products that accelerate the creation of new, more efficient technologies generating less waste while reducing physical prototyping and helping to lower environmental impact. Simulation is improving the speed and cost at which environmental innovators can develop, mature, and deploy new technologies.

We have developed a broad ecosystem that supports interoperability and that supports sustainability innovation via our technology partners, companies in our startup program, and universities that use Ansys software. Together with our customers and partners, we can help enable a more sustainable future, faster.

In 2023, Ansys was a strategic partner with the Sustainable Innovation Forum at COP28. Scott Parent, Ansys VP and CTO of Energy discussed how simulation is at the heart of sustainable innovation.

Customers across industry sectors are applying simulation to their sustainability efforts. Our sustainability committee has divided our sustainability focus areas into four pillars:

Scott Parent, Ansys VP & Field

CTO | Energy | Aerospace |

Industrials

Clean Environment

Materials & Circularity

• Emission Tracing and Control

• Materials Management and Selection

• Carbon Capture, Utilization and Storage

Packaging

• Water Treatment & Management

Light-weighting

Environmental Noise

Chemical Safety

Dust

Compliance & Traceability

Orbital Space Debris

Recycling, Reuse

Energy Solutions

Manufacturing &

Operational Efficiency

  • Wind, Solar, Hydrogren, Nuclear, and other Alternatives
  • Consumption

Integrated Energy Systems

Advanced Manufacturing

Storage Solutions

Digital Twins

Electric Motors

Prognostic Health Management

• Fast Charging Batteries and Fuel Cells

Energy Efficiency

Reliability, Durability

Workflow Optimization

Process Automation

Safety

CORPORATE RESPONSIBILITY // 9

PRODUCT HANDPRINT

Our product handprint use cases show how simulation can help our customers across many industries achieve their sustainability objectives. Our customers are aiming to accelerate technical innovation needed to develop new technologies of the future

at the pace our planet needs now.

CLEAN ENVIRONMENT

Electric Motor Development Using Ansys Simulation

There are challenges that come with the shift toward vehicle electrification, including driving range and the charging infrastructure needed to support long-distance travel. Batteries are a key element in the rapid adoption of electric

mobility, as they directly impact how far electric vehicles (EVs) can travel on a single charge. Electric motors also play an important role, as

they use electromagnetic forces to convert electricity from the battery into mechanical power that sets a vehicle in motion. However, not all of the energy collected during charging is captured and used during this conversion. Some of it is lost due to heat or friction. So, for original equipment manufacturers (OEMs), the goal in any electric motor design is to achieve maximum energy efficiency to ensure most of the power from the battery is used by the electric motor to extend vehicle range. To do this requires an understanding of the physics behind a given design, which can be enabled by simulation-driven engineering.

"We used the Ansys simulation ecosystem to simulate multiple physics and domains. These simulations were used to quickly evaluate thousands of design variants. This helped us to ultimately build up a hardware prototype that outperforms today's benchmark in terms of power density, and still

achieves an efficiency of more than 95% at system level."

  • Robin Michelberger, Simulation Engineer, ZF Friedrichshafen AG

ZF Friedrichshafen AG (ZF) is enabling the next generation of mobility by developing systems and components they say can "see, think, and act" through hardware, software, and sensor technology. It offers a comprehensive solution that extends to vehicle motion control, integrated safety, autonomous driving, and electric mobility to help advance more sustainable transportation.

To this end, Ansys simulation helps ZF to develop electric motors and related products for high volume at an affordable cost, all while delivering the simplest functionality required to best address OEM requirements. Using simulation, ZF can standardize development on the product side as well as the simulation side to find greater efficiencies.

CORPORATE RESPONSIBILITY // 10

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Disclaimer

ANSYS Inc. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 21:39:38 UTC.