Climate Change Data

KLA Corporation

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:48,321 MTCO2e (Scope 1 & 2 market-based)
Scope 1 Emissions:4,698 MTCO2e
Scope 2 Emissions:43,623 MTCO2e (market-based)
Scope 3 Emissions:3.85 million MTCO2e (estimated)
Renewable Energy Share:52%
Total Energy Consumption:197,187 MWh
Water Consumption:67,140,000 gallons
Waste Generated:1,690 metric tons (non-hazardous)

ESG Focus Areas

  • Climate & Energy
  • Materials & Waste
  • Water Management
  • Talent Development
  • Health, Safety & Well-being
  • Inclusion & Diversity
  • Community Engagement
  • Corporate Governance
  • Business Ethics & Compliance
  • Cybersecurity & IP Protection

Environmental Achievements

  • Achieved 52% renewable electricity use
  • 94% waste diverted from landfills at Milpitas site
  • Reduced solid waste by 11.6% at Migdal HaEmek site (normalized for production)
  • Reduced total water withdrawal by 1.1%

Social Achievements

  • Launched Values in Action (VIA) training for leaders
  • Expanded Employee Resource Groups (ERGs)
  • KLA Foundation made $3.9 million in grants
  • 94/100 score on annual Employee Engagement Survey
  • 85% response rate on Employee Engagement Survey

Governance Achievements

  • Added ESG oversight to the Nominating and Governance Committee charter
  • Implemented climate-related risks and opportunities assessment
  • Initiated Annual Compliance Disclosure process with 2400 employees
  • Issued a new Whistleblower Policy

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero Scope 1 and 2 emissions by 2050
Medium-term Goals:
  • Reduce Scope 1 and 2 emissions by 50% by 2030
  • Transition to 100% renewable electricity by 2030
Short-term Goals:
  • Increase supplier engagement on GHG emission reduction goals

Environmental Challenges

  • Supply chain disruptions
  • Global challenges like climate change
  • COVID-19 pandemic impacts
  • Increasing cybersecurity risks
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented energy efficiency measures (LED lighting, chiller tuning, etc.)
  • Expanded hybrid work options
  • Implemented new measures to protect against ransomware
  • Conducted cyber exercises

Supply Chain Management

Supplier Audits: 85% response rate on RBA SAQ survey

Responsible Procurement
  • Standards of Business Conduct
  • Supply Chain Human Rights Policy (aligned with RBA Code of Conduct)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Apex Companies, LLC (limited assurance for GHG data)

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)

Sustainable Products & Innovation

  • Voyager 1035 laser scanning patterned wafer inspector
  • PROLITH 2020b virtual lithography system
  • Orbotech Neos 800 solder mask application system

Awards & Recognition

  • RoSPA Occupational Health and Safety Gold Award (Wales site)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:44,919 tCO2e/year (Scope 1 & 2 Market-Based)
Scope 1 Emissions:7,964 tCO2e/year
Scope 2 Emissions:36,955 tCO2e/year (Market-Based)
Scope 3 Emissions:4.27 Million tCO2e/year
Renewable Energy Share:55% of total energy use
Total Energy Consumption:198,949 MWh/year
Water Consumption:84,607,607 gallons/year
Waste Generated:2,235.7 tons/year
Carbon Intensity:Decreased by 13.7% in 2022

ESG Focus Areas

  • Climate & Energy
  • Materials & Waste
  • Water Management
  • Talent
  • Inclusion & Diversity
  • Health, Safety & Well-being
  • Community Engagement
  • Product Stewardship & Innovation
  • IP Protection
  • Cybersecurity
  • Responsible Sourcing
  • Corporate Governance & ESG
  • Business Ethics & Compliance

Environmental Achievements

  • Decreased scopes 1 & 2 emissions by 7% and increased renewable energy consumption by 3%
  • Increased renewable energy purchasing to 55%

Social Achievements

  • Launched Inclusion for All campaign to promote inclusivity
  • Signed CEO Action for Diversity & Inclusion™ pledge and joined Alliance for Global Inclusion
  • $6.8 million invested via the KLA Foundation through 209 grants across 13 regions ($4.9M) and matching employee donations ($1.9M)
  • Average training hours per FTE increased by 35% to 44.3 hours

Governance Achievements

  • Expanded team to include a new ESG Product Lead
  • Developed a supplier engagement strategy to engage suppliers on setting climate-related targets
  • Conducted a review of its sites in the United Kingdom, Japan and South Korea for ethics and compliance risks

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero Scope 1 and Scope 2 emissions by 2050
Medium-term Goals:
  • Use 100% renewable electricity across global operations by 2030
Short-term Goals:
  • Reduce Scope 1 and Scope 2 emissions by 50% by 2030 from 2021 baseline

Environmental Challenges

  • Increase in Scope 3 emissions due to business growth and increased use of sold products and purchased goods and services
  • Water stress at three Super Sites (Milpitas, CA; Yavne, Israel; Migdal Ha’emek, Israel)
Mitigation Strategies
  • Developing a product energy efficiency strategy to reduce customers’ environmental impact
  • Collaborating with suppliers to set climate-related targets
  • Increasing recycled water usage at Milpitas, CA site by 6.5%
  • Implementing a reusable crate program to reduce material use and costs

Supply Chain Management

Supplier Audits: 85% completion rate on RBA Facility SAQ

Responsible Procurement
  • RBA Code of Conduct
  • KLA’s Standards of Business Conduct
  • Global Human Rights Standard

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Apex Companies, LLC (limited assurance)

UN Sustainable Development Goals

  • SDG 1
  • SDG 2
  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 10
  • SDG 13

KLA Foundation programs align with these goals

Sustainable Products & Innovation

  • Orbotech Corus™ 8M double-sided direct imaging system
  • Axion® T2000 metrology system
  • Teron™ SL670e and Teron™ SL670e XP reticle inspection systems
  • ICOS™ F260 system
  • Filmetrics® Profilm3D

Awards & Recognition

  • Forbes “World’s Best Employers” for 2022
  • Fortune 500
  • Forbes “World’s Top Female-Friendly Companies” for 2022
  • Sustainalytics’ “2023 Top-Rated ESG Companies”
  • Training Magazine’s “Top 10 Hall of Fame”

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:42,814 tCO2e/year (Scope 1 & 2 Market-Based)
Scope 1 Emissions:7,550 tCO2e/year
Scope 2 Emissions:35,264 tCO2e/year (Market-Based)
Scope 3 Emissions:3,480,000 tCO2e/year
Renewable Energy Share:64%
Total Energy Consumption:228,402 MWh/year
Water Consumption:87,876,821 gallons/year
Waste Generated:2782.7 metric tons/year (non-hazardous); 126.8 metric tons/year (hazardous)
Carbon Intensity:Emissions intensity decreased by 11% in 2023

ESG Focus Areas

  • Talent
  • Inclusion and Diversity
  • Human and Labor Rights
  • Health, Safety and Well-being
  • Community Engagement
  • Climate and Energy
  • Materials and Waste
  • Water Management
  • Corporate Governance and ESG
  • Business Ethics and Compliance
  • Product Stewardship and Innovation
  • Cybersecurity and IP Protection
  • Responsible Sourcing

Environmental Achievements

  • Received approval from the Science Based Targets initiative (SBTi) for KLA's near-term, science-based greenhouse gas emissions reduction targets in 2024
  • On track toward meeting 2030 climate goals
  • Reduced total Scope 1, Scope 2 and Scope 3 emissions by 18% from 2022
  • Reduced Scope 3 emissions by 17.7% in 2023
  • 64% renewable electricity usage

Social Achievements

  • Named a top company for women by Forbes magazine in 2023
  • Awarded $5.2 million in grants through the KLA Foundation across 14 regions
  • eNPS rose 6 points over 2022
  • Employees volunteered 12,220 hours and donated $2.2 million in matching gifts.

Governance Achievements

  • Named to the 2023 Dow Jones Sustainability North America Index
  • Adopted a Clawback Policy aligned with new SEC/Nasdaq requirements

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero Scope 1 and Scope 2 emissions by 2050
Medium-term Goals:
  • Use 100% renewable electricity across our global operations by 2030
Short-term Goals:
  • Reduce absolute Scope 1 and 2 emissions by 50% by 2030 from 2021 baseline
  • Reduce Scope 3 GHG emissions from the use of sold products 52% per billion transistors inspected, measured, or processed by 2030 from 2021 baseline

Environmental Challenges

  • Increased overall electricity consumption at KLA operational sites (14.8% year-over-year in 2023) due to expansions at Super Sites in the U.S. and Singapore.
  • Nonhazardous waste increased 15% in 2023 over 2022 due to cleanup efforts at multiple sites, building expansion in Singapore, and construction projects at our sites in the U.S., Belgium and Germany.
  • Evolving rules and regulations in the trade compliance environment presented new compliance challenges.
Mitigation Strategies
  • Strategically prioritizing renewables purchases in regions whose total energy inventory derives primarily from fossil fuels.
  • Implementing new data collection software and establishing definitions for waste categories to better identify waste impacts and inform target-setting and mitigation actions.
  • Implementing additional controls and frequent employee communication and trainings to address trade compliance challenges.

Supply Chain Management

Supplier Audits: 85% response rate for direct suppliers' RBA SAQs; 87% completion rate for indirect suppliers' SAQs

Responsible Procurement
  • Supplier Standards of Business Conduct
  • Global Human Rights Standard (aligned with RBA Code of Conduct)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme heat
  • Riverine flooding
  • Heavy precipitation
  • Coastal flooding
  • Wildfire
  • Drought
  • Cyclones/hurricanes
  • Water stress
Transition Risks
  • Regulatory changes
  • Market shifts
  • Technology changes
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Apex Companies, LLC (limited assurance)

Sustainable Products & Innovation

  • Energy-efficient products
  • Products enabling more power-efficient devices

Awards & Recognition

  • Forbes: World’s Top Companies for Women
  • Newsweek: America’s Greenest Companies List
  • Dow Jones Sustainability North America Index
  • Responsible Business Alliance: KLA Singapore awarded Platinum status