Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Health and Safety
• Occupational Health and Safety

Environmental Achievements

• Reduced Scope 1 emissions from 10,681 tons of CO2e in 2011 to 3,644 tons of CO2e in 2018.
• Reduced water consumption by 1.319 million gallons (9.8%) from 2017 to 2018.
• Reduced water consumption of the aqueous cleaning system by approximately 70% in 2019.
• Diverted 95 tons of materials from the non-hazardous solid waste stream through recycling in 2018.
• Prevented the generation of 1.5 tons of solid waste by refurbishing office chairs in 2018.
• Maximum 12-month rolling average VOC emissions was 2.18 tons in 2018 (below the 5-ton limit).

Social Achievements

• Delivered more than 11,000 individual EHS, HR, Legal and Ethics training courses in 2018.
• 98.8% employee training completion rate in 2018.
• Green to Work incentive program to reduce single-occupant vehicle commutes.
• Guaranteed Ride Home program for employees facing unexpected transportation needs.

Governance Achievements

• ISO 14001:2015 certification for environmental management systems.
• ISO 9001 Quality Management System certification.
• Health and Safety Management System based on OSHAS 18001 and ISO 45001 principles.
• Compliance program for EU REACH Regulation.

Climate Goals & Targets

Environmental Challenges

• Electricity consumption increased by 2% in 2018 compared to 2017.
• Anticipated increase in natural gas consumption in 2019 due to the new CHP plant.
• High gasoline consumption from employee commuting.
• Scope 3 emissions from employee commuting and air travel.

Mitigation Strategies

• Conversion to Smart LED lighting, HVAC and chiller optimization.
• Operation of a 250 kW CHP plant to reduce electricity consumption.
• Green to Work incentive program and Guaranteed Ride Home program to reduce commuting impact.
• Alternative On-Bill Credit agreement for 50% of an offsite community solar project.
• Replacement of a boiler with two high-efficiency heating units.
• Recycling of SF6 gas used in product testing.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring compliance with Axcelis' OH&S and Environmental policies.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol Corporate Standard

Certifications: ISO 14001:2015, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Occupational Health and Safety
• Supply Chain Management
• Workforce Management

Environmental Achievements

• Reduced Scope 1 emissions from 9,689.64 metric tonnes of CO2e in 2011 to 3,378.4 metric tonnes of CO2e in 2021 (65.1% reduction in ten years)
• Reduced normalized Scope 1 emissions by 36.7% from 2020
• Reduced normalized Scope 2 emissions by 28.8% from 2020
• Reduced purchased electricity by 0.5% and Joules per $million by 35.9% from 2020
• Reduced water consumption to 13.27 million gallons in 2021
• Increased percentage of solid waste diverted to recycling to 69.5% in 2021 from 11.9% in 2020
• Reduced total solid waste disposed of by 49.2% in 2021

Social Achievements

• Achieved a worldwide OSHA recordable incident rate equivalent of 0.45 in 2021
• Delivered 14,869 individual EHS, HR, Legal and Ethics training courses in 2021
• Achieved 99.2% training completion rate in 2021

Governance Achievements

• Board of Directors oversees EHS and Climate Change risks using Enterprise Risk Management (ERM) system
• ISO 14001 and ISO 45001 certifications for Axcelis Headquarters and ISO 45001 for AAOC

Climate Goals & Targets

Environmental Challenges

• Accurately assessing resource consumption at smaller, non-metered locations
• Attracting and retaining qualified employees, including foreign nationals

Mitigation Strategies

• Began collecting emissions data from additional locations in 2022, planning corporate-wide emissions reporting in 2023
• Employing experienced HR and Finance staff in applicable countries and accessing external legal counsel as needed for offshore employment

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct incorporating Axcelis’ OH&S and Environmental policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Semiconductors Standard, CDSB framework

Certifications: ISO 14001:2015, ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Environment
• Climate Change
• Safety
• Social
• People
• Community
• Governance

Environmental Achievements

• Reduced Beverly Headquarters’ purchased electricity by 1.2 million kWh
• Reduced Scope 1 emissions from 9,689.64 metric tonnes of CO2e in 2011 to 5,336.031 metric tonnes of CO2e in 2022 (45% reduction)
• Reduced Beverly Headquarters’ Scope 2 emissions by 54% from 2021
• Achieved goal of emitting less than 32 pounds of SF6 at the Beverly facility (27.6 pounds emitted)
• Reduced solid waste disposal to 0.50 tons/$M revenue (16% reduction from 2021)
• Reduced hazardous waste disposal to 15.87 pounds/$M revenue
• ISO 14001 certification for Axcelis Headquarters since 2000 (currently ISO 14001:2015)
• ISO 45001 certification for Axcelis Headquarters (April 2022) and AAOC (June 2022)

Social Achievements

• Increased percentage of women in the U.S. workforce to 19.5% (from 18.3% in 2021)
• Increased percentage of underrepresented minorities (URMs) in the U.S. workforce to 13.42% (from 9.9% in 2021)
• Launched Safety Star program to recognize employees
• Provided scholarships to two students through the Axcelis Scholarship Program
• Supported various community organizations through Axcelis Cares

Governance Achievements

• Independent Chairperson of the Board
• Directors and Officers Stock Ownership Guidelines implemented
• CEO Performance Review Process in place
• Annual Board Assessment and Director Evaluation conducted
• Board refreshment policy in place
• Prohibition on Directors and Officers Hedging or Pledging Stock
• Protections for Minority Stockholders implemented
• Best practices adopted with respect to executive compensation

Climate Goals & Targets

Environmental Challenges

• Exceeding the established target for OSHA recordable incident rate (0.96 vs. <0.5)
• Actual water consumption (15.47 million gallons) exceeded the goal (13 million gallons) due to weather conditions
• Finding qualified female candidates and URMs for technical roles
• Limited number of URMs in leadership positions

Mitigation Strategies

• Implemented a kaizen process, expanded work areas, held monthly meetings with new hires, conducted focused training sessions and safety perception surveys, launched the Safety Star program
• Continuously reducing industrial wastewater generation by increasing the efficiency of aqueous clean rinsing
• Robust outreach and sourcing strategies to encourage female candidates to apply
• Initiatives to improve diverse hiring, including reviewing college recruitment and job postings, participating in WE23, funding co-op and intern positions, partnering with military talent recruiting agencies, and emphasizing work location/work schedule flexibility

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Semiconductors Standard, CDSB Climate Disclosure Pillars

Certifications: ISO 14001:2015, ISO 45001:2018

UN Sustainable Development Goals

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