Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business and Governance
• Products and Customers
• Our Workplace
• Sustainable Operations
• Responsible Supply Chain
• Our Communities

Environmental Achievements

• Reduced GHG intensity by 35% from a 2012 baseline
• Achieved over 2 million kWh in energy savings
• Offset 72% of measured scope 3 emissions

Social Achievements

• Increased employee engagement across the globe with CEO engagement sessions and global employee surveys
• Expanded inclusion and diversity program with additional resources, the launch of global inclusion training, and new employee resource groups
• Supported employee growth with new career development, mentoring, and job rotation programs, and nearly 480,000 hours of training across 3,000 different courses

Governance Achievements

• Strengthened Ethics and Compliance charter and increased resources for the Ethics and Compliance program
• Selected five of the United Nations’ (UN) Sustainable Development Goals (SDGs) as a focus for our CSR program based on our materiality assessment

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to increased R&D activities, increased manufacturing, and the opening of a new manufacturing site.
• Increased scope 1 and 2 absolute emissions due to expanded operations and increased R&D activity.

Mitigation Strategies

• Implementing energy efficiency projects (resulting in over 24 million kWh in accumulated savings)
• Investing in energy efficiency, on-site renewables where feasible, point-of-use abatement, and carbon offsets
• Enhanced human trafficking due diligence process by focusing on highest risk countries where our suppliers are located

Supply Chain Management

Responsible Procurement

• Global Supply Chain Code of Conduct
• RBA Code of Conduct
• ISM Guiding Principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core level, SASB Standard for the Technology and Communications Sector: Semi-Conductor Industry

Certifications: ISO 14001 (all manufacturing sites), ISO 27001 (nine sites), ISO 45001 (multiple sites)

UN Sustainable Development Goals

• Good health and well-being
• Quality education
• Decent work and economic growth
• Reduced inequalities
• Climate action

Materiality assessment identified these SDGs as most material to Lam's business activities.

Sustainable Products & Innovation

• Energy-efficient features in deposition products (up to 12% energy reduction)

Awards & Recognition

• Newsweek America’s Most Responsible Companies 2020
• Barron’s 100 Most Sustainable Companies
• American Heart Association Silver Recognition
• Forbes Best Mid-Size Employers
• Fortune World’s Most Admired Companies
• Fortune 500 List
• Oregon Employer’s Support of the Guard and Reserve Award
• Oregon Clean Water Service’s Environmental Excellence Award
• San Francisco Times Top 100 Philanthropists
• Singapore Children’s Society Gold Award
• Singapore Health Promotion Board Award
• Washington County Green Business Award
• YWCA Tribute to Women Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Supply Chain
• Employee Well-being
• Community Engagement

Environmental Achievements

• Achieved 2.6 million kWh energy savings through efficiency improvements
• Reduced hazardous waste to landfill from 1.10% in 2019 to 0.005% in 2020
• Achieved 7.2 million gallons of water savings in water-stressed regions
• Decreased non-hazardous waste generation by 10%.

Social Achievements

• Developed an organization-wide inclusion and diversity strategy
• Increased employee engagement survey score to 80
• Launched a $25 million COVID-19 Relief and Recovery Fund to support employees and communities
• Expanded recruitment efforts to include Historically Black Colleges and Universities
• Supported social justice initiatives with $1 million in funding

Governance Achievements

• Developed two new ethics policies and strengthened global supplier code of conduct
• Expanded and strengthened information security program
• Achieved 98% completion rate for annual ethics training

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic created global disruptions
• Increased energy use due to expanded operations
• Increased hazardous waste generation due to process wastewater

Mitigation Strategies

• Implemented strict health and safety protocols
• Enabled remote work and provided additional employee benefits
• Developed a holistic approach to employee support through the COVID-19 Relief Fund
• Implemented energy efficiency projects resulting in 2.6 million kWh savings
• Worked with hazardous waste vendors to find alternative disposal methods

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global Supplier Code of Conduct requiring adherence to RBA Code of Conduct and ISM Guiding Principles
• Supplier surveys and scorecards incorporating ESG factors
• Third-party scoring entities such as Corporate Human Rights Benchmark and KnowtheChain
• Due diligence on conflict minerals and responsible sourcing of cobalt

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Energy efficiency improvements
• Renewable energy adoption

Reporting Standards

Frameworks Used: GRI Standards: Core, SASB Standard for Technology and Communications Sector: Semiconductor Industry, TCFD

Certifications: ISO 14001 (manufacturing and R&D sites), ISO 45001 (multiple sites), ISO 27001 (nine sites)

Third-party Assurance: External assurance limited to financial data from the 2020 Annual Report on SEC Form 10-K

UN Sustainable Development Goals

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

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• Dry Resist technology (uses less chemistry and energy)
• Sense.i™ product family (reduces RF power usage)

Awards & Recognition

• Forbes’ World’s Best Employers
• Barron’s Most Sustainable Companies
• Human Rights Campaign Corporate Equality Index
• Fortune’s World’s Most Admired Companies
• Newsweek’s America’s Most Responsible Companies
• Wall Street Journal’s Management Top 250
• Investor Business Daily’s Best ESG Companies
• MSCI World ESG Leaders Index
• STOXX Global ESG Leaders Index

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Reduced Scope 1 and 2 (market-based) GHG emissions by 9.5% from 2019 baseline
• Achieved 100% renewable energy at Ohio, Malaysia, and China sites
• Diverted 99% of hazardous waste from landfill
• Saved 6.3 million gallons of water in water-stressed regions

Social Achievements

• Achieved top 20% employee engagement score
• Maintained OSHA recordable injury rate at 0.4
• Expanded paid parental leave program
• Increased proportion of women globally by 4.8% and underrepresented employee groups by 15.4%
• Launched six new employee resource groups
• Donated $6.2M to support communities

Governance Achievements

• Named to the North America Dow Jones Sustainability Index
• Launched $1.5 billion sustainability-linked revolving credit facility
• Established Ethics and Compliance Steering Committee
• Adopted changes to Corporate Governance Guidelines to reflect commitment to board diversity

Climate Goals & Targets

Environmental Challenges

• Climate change risks including extreme weather events, regulatory changes, and market shifts
• Supply chain disruptions
• Increased energy use due to manufacturing expansion
• Maintaining high employee engagement in a changing work dynamic
• Addressing the gender gap in STEM fields

Mitigation Strategies

• Developed a net zero pathway with targets for 2025, 2030, and 2050
• Investing in renewable energy and energy efficiency
• Engaging with suppliers on environmental sustainability
• Implementing energy efficiency projects
• Expanding employee benefits and wellness programs
• Launching new initiatives to support employee well-being
• Collaborating with organizations to advance I&D in STEM

Supply Chain Management

Supplier Audits: 16 QMS audits in 2021

Responsible Procurement

• Global Supplier Code of Conduct
• Supplier engagement platform
• Monthly supplier scorecard
• Annual Supplier Day
• Supplier Excellence Awards

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Natural hazards
• Rising temperatures
• Water stress

Transition Risks

• Regulatory changes
• Changing customer expectations
• Competitors developing lower-impact products

Opportunities

• Expansion of end-use markets
• Improving resilience of business operations
• Operational footprint reduction
• Reduced resource consumption of sold products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISO 27001 (9 sites)

Third-party Assurance: DNV Business Assurance USA, Inc.

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 8
• Goal 10
• Goal 13

Initiatives contributing to these goals are described throughout the report

Sustainable Products & Innovation

• Sense.i product family (energy reduction, less raw materials)
• Dry Resist (less chemicals and energy)

Awards & Recognition

• Dow Jones Sustainability Index (North America)
• Various workplace and community recognitions listed in the report

Environmental Metrics

ESG Focus Areas

• Climate Strategy
• Product Stewardship
• Employee Fulfillment
• Inclusion and Diversity
• Supplier Engagement and Environmental Performance
• Leadership Accountability

Environmental Achievements

• Exceeded 2025 water savings goal by 175%
• Achieved SBTi validation for near-term emissions reduction targets
• Completed renewable electricity projects at two sites
• Diverted 99.99% of hazardous waste from landfills

Social Achievements

• Launched Student Loan Assistance program in the U.S.
• Expanded paid parental and bonding leave policies globally
• Increased proportion of women in global workforce by 3.0% and underrepresented employees in the U.S. by 5.0%
• Increased employee volunteer hours by 58% from 2019 baseline

Governance Achievements

• Developed a new global Human Rights Policy
• Celebrated first Ethics & Compliance Week
• Joined the UN Global Compact
• Conducted in-depth ESG materiality assessment
• Tied executive compensation to ESG goals (20%)

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 and 2 emissions due to increased usage of a specific chemical and previously unidentified emissions source.
• Supply chain disruptions

Mitigation Strategies

• Working with SBTi to update emissions inventory and restate 2030 goal
• Acting to eliminate the source of increased Scope 1 emissions
• Implementing plug-and-play technology to expedite direct material shipments
• Engaging suppliers to set SBTs and providing support and resources

Supply Chain Management

Supplier Audits: Leveraged RBA tools to assess supplier performance; 94% of suppliers responded to conflict minerals survey

Responsible Procurement

• Global Supplier Code of Conduct (GSCC)
• RBA Code of Conduct
• Supplier ESG Forum

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB Standard for Technology and Communications Sector: Semiconductor Industry

Certifications: ISO 9001, ISO 14001 (multi-site), ISO 27001 (headquarters), ISO 45001 (Fremont HQ)

Third-party Assurance: DNV Business Assurance USA, Inc.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Lam's initiatives contribute to these goals through renewable energy adoption, sustainable product development, waste reduction, emissions reduction, and collaborations with various stakeholders.

Sustainable Products & Innovation

• Sense.i®, Argos®, Prevos™, Selis®, Coronus®

Awards & Recognition

• Intel EPIC Outstanding Supplier Award
• Training Magazine’s 2022 Training APEX Award
• Silicon Valley Business Journal’s 2022 Community Impact Award
• Forbes –America’s Best-in-State Employers Oregon: #1
• Forbes World’s Top Female-Friendly Companies: #219
• Forbes World’s Best Employers: #555
• Forbes America’s Best Employers: #29
• Fortune 500: #250
• Fortune World’s Most Admired Companies: #6 in the semiconductor industry
• Human Rights Campaign Foundation—2022 Best Places to Work for LGBTQ+ Equality
• JUST 100—151st overall and 10th in the semiconductor industry
• Newsweek—America’s Most Responsible Companies: #20

Environmental Metrics

ESG Focus Areas

• Employee retention
• Safety
• R&D spend
• Risk Management
• Sustainable Operations
• Responsible Supply Chain
• Energy and Climate
• Employee Engagement
• Community
• GHG emissions
• Water usage
• Waste management
• Diversity and Inclusion

Environmental Achievements

• Reduced GHG emissions Scopes 1 and 2 (market-based) by 51%
• Reduced Scope 1 emissions by 58%
• Increased percent renewables (U.S.) to 50%
• Increased hazardous waste recycling rate to 53%
• Increased non-hazardous waste recycling rate to 81%

Social Achievements

• Increased employee volunteer hours by 45%
• Increased total giving by the Lam Research Foundation by 3%
• Increased employee matching gifts by 8%

Governance Achievements

• Maintained $0 total financial contributions made to political parties, candidates or related institutions
• Maintained $0 total financial contributions made to political parties, candidates or related institutions by LAMPAC

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Water stress
• Climate change impacts on operations
• Changing customer expectations
• Competitors developing lower-impact products
• Regulation of Lam’s direct operations, customer operations, and/or raw materials

Mitigation Strategies

• Developing less energy-intensive products
• Capital funding for climate-related operations projects
• Engaging with suppliers on environmental sustainability
• Incorporating physical risks into business continuity planning
• Monitoring emerging regulations
• Formalizing a regulatory and governance committee

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global Supplier Code of Conduct
• Supplier diversity initiatives
• RBA Self-Assessment Questionnaires

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Natural hazards
• Rising temperatures
• Water stress

Transition Risks

• Changing customer expectations
• Competitors developing lower-impact products
• Regulation of Lam’s direct operations, customer operations, and/or raw materials

Opportunities

• Expansion of end-use markets
• Improving resilience of business operations
• Operational footprint reduction
• Reduced resource consumption of sold products

Reporting Standards

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

Certifications: ISO 14001

Third-party Assurance: External third-party

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 8
• SDG 10
• SDG 13

See UN SDGs index in report for details

Sustainable Products & Innovation

• Less energy-intensive products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Water Stewardship
• Carbon Footprint Reduction
• Sustainable Product Development
• Community Investment
• Workforce Development
• Ethical Business Practices

Environmental Achievements

• Saved ~2.8M kWh of energy worldwide through various initiatives.
• Generated 5.5M kWh of electricity from solar and nearly doubled renewable energy consumption.
• Saved 20.1 million gallons of water globally, including a wastewater reclamation project in Fremont, California.
• Identified a wafer-less auto-cleaning process for etch products with the potential to reduce NF3 emissions by up to 85%.
• Reduced research and development emissions and chemical usage through virtual solutions and AI-powered simulation.
• Developed features to reduce customers' NOx emissions by approximately 50% and N2O emissions by approximately 30%.
• Enhanced ECO Mode feature to reduce peripheral energy usage by 40% in idle state.

Social Achievements

• Donated $6.8M through The Lam Foundation, including corporate matches for employee donations and volunteer time.
• Donated $10M to FIRST® Global to support STEM education.
• Offered seven internal leadership development programs for employee growth.

Governance Achievements

• Named one of the World's Most Admired Companies by Fortune Magazine, one of the World's Best Companies by Time Magazine, and among the World's Most Ethical Companies by Ethisphere.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Wafer-less auto-cleaning process for etch products
• Features to reduce customers' NOx and N2O emissions
• ECO Mode feature

Awards & Recognition

• World's Most Admired Companies (Fortune)
• World's Best Companies (Time)
• World's Most Ethical Companies (Ethisphere)