Climate Change Data

Lumentum Holdings, Inc.

Climate Impact & Sustainability Data (2020-07 to 2021-06, 2021-07-04 to 2022-07-02, 2024)

Reporting Period: 2020-07 to 2021-06

Environmental Metrics

Total Carbon Emissions:96,441 tCO2e/year
Scope 1 Emissions:6,273 tCO2e/year
Scope 2 Emissions:42,235 tCO2e/year (market-based)
Scope 3 Emissions:47,933 tCO2e/year
Renewable Energy Share:100% at headquarters and select sites
Total Energy Consumption:142,299 MWh/year
Water Consumption:444 ML/year (withdrawal)
Waste Generated:1,212 tons/year
Carbon Intensity:55 MT CO2e/$MM in FY21

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, and Inclusion
  • Supply Chain Responsibility
  • Product Safety
  • Employee Well-being
  • Community Engagement

Environmental Achievements

  • Achieved 100% renewable electricity procurement at headquarters (two years ahead of schedule)
  • Overall emissions decreased 12%
  • 18% decrease in scope 3 emissions from reductions in contract manufacturing
  • 6% decrease in market-based scope 2 emissions
  • Reduced energy use by almost 4.5% at Nava factory
  • Zero landfill of hazardous waste at Nava factory
  • 90% of non-hazardous waste recycled at Nava factory

Social Achievements

  • Successfully adapted internship program to 100% remote during COVID-19
  • Implemented several paid “thank you” days off for employees
  • Launched employee-led employee resource groups (ERGs)
  • Increased the proportion of women in senior leadership roles to 20.7%
  • Exceeded early career hire goals with 48% of new employees being within the first five years of their career
  • Achieved goal for Black/African American representation of new hires (U.S.A. only)
  • Maintained zero accidents at Nava factory for over 15.9 million labor-hours
  • Served over 23,000 meals and made 430 deliveries to at-risk groups and frontline workers in Canada

Governance Achievements

  • Established a cross-functional CSR Council
  • Implemented annual training for governance body members
  • Expanded anti-corruption training to include all contingent employees
  • Completed a comprehensive analysis of employee compensation to identify and address gender pay gaps
  • Zero significant fines or sanctions for non-compliance with environmental and socioeconomic laws and regulations

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve net zero scope 1 and 2 emissions by 2030
Short-term Goals:
  • Reduce annual water withdrawal by 5% by 2023
  • Use 100% renewable electricity at all sites by 2023
  • Reduce absolute energy consumption by 5% at all R&D sites by 2023

Environmental Challenges

  • Supply chain disruptions due to COVID-19
  • Increased air circulation in cleanrooms due to COVID-19 (leading to increased scope 1 and 3 emissions)
  • Water withdrawal increased 14% at Nava factory due to increased insourcing
  • Meeting diversity goals, particularly Latinx/Hispanic representation
Mitigation Strategies
  • Transitioned employees to remote work
  • Implemented safety measures at all sites
  • Developed virtual collaboration tools
  • Implemented pay equity analysis and adjustments
  • Expanded university relations program and partnerships to engage with diverse candidate pools
  • Introduced initiatives to improve recruitment processes to ensure a consistent and unbiased process

Supply Chain Management

Supplier Audits: 20% of Tier 1 suppliers audited in FY21

Responsible Procurement
  • Supplier Code of Conduct
  • RBA membership
  • Conflict Minerals Reporting Templates (CMRT)
  • RapidRatings’ Financial Health Rating (FHR)
  • Supply Risk Solutions (SRS)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, CDP Climate Change and Water Security Questionnaires, SASB Standards

Certifications: ISO 9001:2015, ISO 14001, ISO 45001, TL 9000, ESD 20.20

Third-party Assurance: ERM Certification and Verification Services Inc. (for GHG emissions data)

UN Sustainable Development Goals

  • Goal 5 (Gender Equality)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 10 (Reduced Inequalities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Lumentum's initiatives contribute to these goals through various programs and actions related to diversity, inclusion, renewable energy, sustainable manufacturing, and climate change mitigation.

Sustainable Products & Innovation

  • Energy-efficient lasers and optical components
  • High-power pump lasers with improved wall-plug efficiency

Awards & Recognition

  • Thailand Prime Minister’s Industry Award for Outstanding Achievement in Quality Management (Nava factory)
  • Thailand’s National Health and Safety Award (Nava factory)
  • Barron’s Top 100 Most Sustainable Companies List

Reporting Period: 2021-07-04 to 2022-07-02

Environmental Metrics

Total Carbon Emissions:97,950 tCO2e/year
Scope 1 Emissions:5,615 tCO2e/year
Scope 2 Emissions:48,629 tCO2e/year (location-based), 48,013 tCO2e/year (market-based)
Scope 3 Emissions:44,323 tCO2e/year
Renewable Energy Share:31%
Total Energy Consumption:146,076 MWh/year
Water Consumption:439 ML/year
Waste Generated:1,449 tons/year
Carbon Intensity:57.2 MT CO2e/$MM in FY22

ESG Focus Areas

  • Climate Change
  • Diversity, Inclusion, and Belonging (DIB)
  • Supply Chain Responsibility
  • Innovation

Environmental Achievements

  • Transitioned all North American and European sites to renewable energy (achieving 31% renewable electricity sourcing globally)
  • Achieved LEED Silver certification for corporate headquarters and LEED certification for a second facility in Škofljica, Slovenia
  • Started solar power generation at Škofljica, Slovenia facility (estimated to avoid 115 metric tons of CO2 emissions per year)
  • Global energy consumption decreased by 1.8% year-over-year

Social Achievements

  • Signed the CEO Action for Diversity & Inclusion pledge
  • Increased percentage of women in senior leadership positions to 23.1%
  • Awarded 16 scholarships to underrepresented minority student interns in the U.S.
  • Launched a company-wide mentorship program
  • Navanakorn, Thailand factory recognized by the RBA with Platinum status

Governance Achievements

  • Received a Prime rating from ISS and a Gold rating from EcoVadis
  • Executive compensation tied to DIB and net-zero goals
  • 100% of employees, governance body members, and suppliers received anti-corruption policies and procedures training

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions across all scopes by 2030 (target to be submitted to SBTi for approval)
Medium-term Goals:
  • Achieve net-zero Scope 1 and 2 GHG emissions by 2030
  • Expand ISO 14001 and ISO 45001 certifications to all manufacturing sites by the end of FY24
Short-term Goals:
  • Reduce water withdrawal by 5% by 2023
  • Increase diversion of non-hazardous waste to 90% by FY27
  • Reduce GHG intensity by 25% by FY24 from a FY21 baseline

Environmental Challenges

  • Increased total GHG emissions compared to FY21 due to increased production in Asia with higher emissions factors
  • COVID-19 pandemic slowed progress on environmental performance (increased single-use waste, delayed energy-efficient HVAC installations)
  • Missed target for increasing percentage of early-career hires due to increased demand for experienced roles in California
Mitigation Strategies
  • Established plans and made significant investments toward achieving net-zero commitment
  • Developed a central location for verified energy-saving measures and a renewable energy strategy
  • Implemented virtual Kaizen events to maintain global participation during the pandemic
  • Expanded health plan coverage to include additional travel enhancements and reimbursement for employees in affected states

Supply Chain Management

Supplier Audits: 100% of contract manufacturers undergo third-party audits every two years

Responsible Procurement
  • Supplier Code of Conduct
  • RBA Code of Conduct
  • Annual business continuity assessments
  • RapidRatings and Dataminr for supply chain risk monitoring

Climate-Related Risks & Opportunities

Physical Risks
  • Supply chain disruptions due to climate events
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, CDP Climate Change and Water Security Questionnaires, SASB Standards, SBTi

Certifications: ISO 14001, LEED

Third-party Assurance: ERM Certification and Verification Services Inc. (for FY21 energy and emissions data)

UN Sustainable Development Goals

  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 12
  • Goal 13

Initiatives contributing to these goals are detailed in the UN Sustainable Development Goal Index section of the report.

Sustainable Products & Innovation

  • Power-efficient products, improved temperature controls, increased optical output power

Awards & Recognition

  • Newsweek’s America’s Most Responsible Companies 2022
  • National Capital Region’s Top Employers
  • Prime rating from ISS
  • Gold rating from EcoVadis
  • Thailand Prime Minister’s Industry Award 2021

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:686,701 tCO2e/year
Scope 1 Emissions:8,715 tCO2e/year
Scope 2 Emissions:84,807 tCO2e/year (market-based and location-based combined)
Scope 3 Emissions:661,457 tCO2e/year
Renewable Energy Share:79%
Total Energy Consumption:197,265 MWh/year
Water Consumption:673 ML/year
Waste Generated:1,762 tons/year
Carbon Intensity:41 MT CO2-e/$MM in FY24

ESG Focus Areas

  • Climate Change
  • Diversity, Inclusion, and Belonging
  • Responsible Supply Chain
  • Product Sustainability
  • Innovation
  • Governance

Environmental Achievements

  • Reduced Scope 1 and Scope 2 emissions by 38% compared to FY23
  • Procured 79% of electricity from renewable sources
  • Transitioned three additional sites to 100% renewable electricity
  • Started solar power generation at two sites
  • Reduced GHG intensity by 30% compared to FY21

Social Achievements

  • Achieved ISO 45001 certification at three additional manufacturing sites
  • Expanded Diversity Inclusion and Belonging Council
  • Hosted nearly 250 mentors and mentees in employee mentorship program
  • Awarded 20 scholarships to underrepresented minority student interns
  • Supported over 230 employees in leadership certificate programs

Governance Achievements

  • Successfully integrated Product Design Kaizens early into the New Product Introduction cycle
  • Completed integration of NeoPhotonics Corporation
  • Maintained a Total Recordable Incident Rate (TRIR) of 0.07 and a Lost Time Incident Rate (LTIR) of 0.06

Climate Goals & Targets

Long-term Goals:
  • Net zero across our value chain (Scopes 1, 2, and 3) by 2050
Medium-term Goals:
  • Net-zero GHG emissions from our global operations (Scope 1 and 2) by 2030
Short-term Goals:
  • Divert 90% of non-hazardous waste from landfill by FY27
  • Reduce GHG intensity by 25% by FY24 from an FY21 baseline
  • Reduce annual water withdrawal by 5% by FY26, compared to FY23 levels

Environmental Challenges

  • Significant market demand challenges as customers slowed purchases to reduce high inventories
Mitigation Strategies
  • Continued investment in technology development and product innovation focusing on products improving performance and power efficiency

Supply Chain Management

Supplier Audits: 16 Tier 1 supplier facilities audited in FY24 (13% of total facilities, 240% by spend)

Responsible Procurement
  • Supplier Code of Conduct
  • RBA Code of Conduct
  • Conflict Minerals Reporting Template (CMRT)
  • Extended Minerals Reporting Templates (EMRT)
  • Dun and Bradstreet risk ratings
  • Everstream Analytics supply chain risk management platform
  • Business continuity planning assessment

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB standards, UN SDGs, TCFD recommendations

Certifications: ISO 14001, ISO 45001, ISO 27001-2022 (Headquarters and Thailand)

Third-party Assurance: DQS GmbH (limited assurance for energy and emissions data)

UN Sustainable Development Goals

  • Goal 5: Gender Equality
  • Goal 7: Affordable and Clean Energy
  • Goal 8: Decent Work and Economic Growth
  • Goal 9: Industry, Innovation and Infrastructure
  • Goal 10: Reduced Inequalities
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action

Initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

  • Energy-efficient optical and photonic products
  • OSFP-DCO ZR/ZR+ 400G transmission module
  • TrueFlex® Twin 16x24 wavelength selective switch

Awards & Recognition

  • EcoVadis Platinum rating
  • Newsweek’s America’s Most Responsible Companies
  • Nokia Diamond Award for Sustainability