Doing Our Part: Lam’s Path to Net Zero

Today we face what is perhaps the most pressing challenge of our time: climate change. We are seeing its effects on a global scale, with rising sea levels, wildfires, droughts and floods impacting our environment, business and social health and resilience around the world. . According to NASA, the planet’s temperature has already risen 1.1°C above pre-industrial levels and if temperatures continue to rise above 1.5°C, the effects will be catastrophic.

At Lam, we are committed to doing our part to reduce emissions and protect our planet. Last year, we announced our most ambitious sustainability goal yet: to be net zero by 2050. Today, on Earth Day, we are proud to announce our plan to get there.

What determines our carbon footprint

Over the past 50 years, the main driver of rising global temperatures has been a variety of greenhouse gas emissions like carbon dioxide, methane and others. The scientific community classifies greenhouse gas emissions into three categories or perimeters:

  • Litter 1 emissions are direct emissions from resources owned and controlled by the company such as office buildings, manufacturing facilities, laboratories and vehicles.
  • Litter 2 emissions are the indirect emissions from the purchased energy we use to power, heat and cool our buildings.
  • Litter 3 emissions are indirect emissions that occur upstream and downstream of the value chain. Activities such as business travel, employee travel and waste, as well as the full life cycle of our products, fall into this category.

Lam’s net zero goal is to eliminate or offset all greenhouse gas emissions across our entire operational footprint. Based on our 2019 emissions inventory, scopes 1 and 2 represent 4% of our overall emissions profile. The remaining 96% of the company’s greenhouse gas emissions are classified in scope 3. Our supply chain and the use of our products account for the majority of our emissions in this category.

Scientific objectives are at the heart of our strategy

Over the next few decades, Lam intends to undertake an ambitious and significant effort to ensure that we execute a clearly defined strategy to reduce emissions in accordance with climate science. To support this effort, we have established science-based targets and submitted them for validation this year with the Science Based Targets initiative.

The Science Based Targets Initiative (SBTi) is a standards body that has established a framework for setting climate targets that align with the latest scientific advances to support credibility and transparency among businesses.

Achieving net zero emissions means collaboration within our ecosystem

Achieving net zero emissions will require close partnership and collaboration from our sustainability teams, suppliers, customers and logistics providers. Together, we are striving to achieve the following milestones on our path to net zero emissions by 2050:

  • By 2025: we aim to reduce our scope 1 and 2 emissions by 25% from our 2019 baseline. In addition, our goal is to see our key suppliers and customers, who collectively account for 67% of our scope 3 emissions, also set science-based goals.
  • By 2030: Over the next ten years, we aim to transition to 100% renewable energy by installing solar panels at selected sites and using market-based instruments such as power purchase agreements. We also intend to look for ways to increase our energy efficiency, including installing and designing energy efficient equipment and facilities as we grow. Across our operations, we plan to explore fuel switching and greenhouse gas reduction to further reduce our scope 1 and 2 emissions, and aim to offset the remainder. By 2030, our goal is to have 95% of our top direct suppliers set science-based targets.
  • By 2040: we aim to achieve net zero in the footprint of our global corporate operations by reducing the majority of our scope 1 and 2 emissions and offsetting the remainder.
  • By 2050: we plan to be net zero, maintaining full reduction of our Scope 1 and 2 operational emissions and reducing the majority of our emissions across our entire value chain. For Scope 3 emissions for which reduction is not possible, we plan to purchase offsets that reduce an equivalent amount of emissions.

With this scientific roadmap now in place, we are strengthening our teams and resources to execute our plans in the years to come, prioritizing three key areas:

  1. Facilities: We plan to invest more in energy efficiency with the goal of achieving 2 million kilowatt hours of energy savings. For comparison, the energy saved would be equivalent to providing a full standard battery charge of 40 kWh for 50,000 Nissan LEAF electric cars. We also plan to expand the solar power we use by installing a solar panel at our new manufacturing site in Malaysia and continue to assess all of our domestic sites for solar opportunities.
  2. Suppliers: Our supply chain plays an important role in our Scope 3 emissions and over the next year we plan to continue to engage with our suppliers and set expectations for what’s to come. We also invested in a new supplier engagement platform to better understand our suppliers’ emissions and identify opportunities to work together to collectively reduce those emissions.
  3. Some products: Our product groups assess our product emissions levels and develop a technical roadmap in line with our customers’ sustainability goals and our net zero goal.

Our roadmap to net zero is ambitious, but together with our global teams, we plan to prove that it can be done in the decades to come. I encourage you to visit our ESG site to learn more.

This article contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not statements of historical fact, including statements regarding our carbon emissions, energy efficiency and our net zero plans and targets. . Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations expressed, including the risks and uncertainties described in our filings with the United States Securities and Exchange Commission, including risk factors described in our annual report. on Form 10-K. You should not place undue reliance on forward-looking statements. We assume no obligation to update forward-looking statements.

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