Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Energy-efficient technology
• Employee development
• Human rights
• Ethical standards
• Environmental stewardship

Environmental Achievements

• Received CEEDA accreditation for energy-efficiency in two data centers
• Incorporated environmental performance into design briefs for new building projects aiming for LEED or BREEAM accreditation
• Partnered with companies for low-impact building technology, improving environmental performance using energy-efficient ARM technology

Social Achievements

• ARM University Programme doubled its adopted course and laboratory base worldwide
• Increased charitable giving
• Implemented a Matching Gift Donation programme for employee fundraising

Governance Achievements

• Improved risk assessment and reporting framework
• Documented approach to risk appetite
• Full compliance with the UK Corporate Governance Code (September 2012) and the Sarbanes-Oxley Act 2002 (US)
• Implemented communication and training programmes to ensure employee understanding of relevant legislation

Climate Goals & Targets

Environmental Challenges

• Challenging and competitive economic environment
• Growth in employee numbers leading to increased carbon emissions intensity

Mitigation Strategies

• Continued focus and improvement in risk management and internal control
• Enhanced environmental data collection and reporting
• Development of energy-efficient, high-performance processors and low-power technologies

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK Corporate Governance Code

Certifications: ISO 27001, ISO 22301, ISO 9001

Third-party Assurance: PricewaterhouseCoopers LLP

Sustainable Products & Innovation

• Energy-efficient, high-performance processors

Awards & Recognition

• Green Data Centre of the year at the North American DCD Awards

Environmental Metrics

ESG Focus Areas

• Climate Crisis
• Waste
• Water
• Responsible Technology
• Privacy and Security
• Diversity and Equal Opportunity
• Accessible and Inclusive Products
• Developing a Future Workforce
• Employee Experience
• Human Rights and Forced Labor
• Future of Work
• Indirect Economic Impacts
• Responsible Procurement Practices
• Economic Performance
• Ethics and Integrity
• Public Policy
• Anti-Corruption and Anti-Competitive Behavior

Environmental Achievements

• Achieved 2020 target of a 30 percent reduction in tonnes of CO2 emissions per employee (40% reduction below the 2010 baseline, reaching 4.88tCO2e/FTE).
• Achieved 2020 target of a 15 percent reduction in energy use per employee (39.5 percent reduction from the 2010 baseline, reaching 5.04MWh/FTE).

Social Achievements

• £1.4m raised and donated to charity.
• Implemented various employee development programs including Big Picture induction, Global Graduate Conference, Global Engineering Conference, Global Technical Leadership conference, and Arm Leadership Conference.

Governance Achievements

• Updated Code of Conduct released in October 2018.
• Established a confidential whistleblowing procedure.

Climate Goals & Targets

Environmental Challenges

• Rapid growth made it difficult to achieve absolute reductions in energy and emissions.
• Difficulty in quantifying energy use of products and services outside the organization due to scale and range of devices powered by Arm technology.
• Inconsistent waste data collection across the global estate.

Mitigation Strategies

• Continuous efforts to increase energy efficiency and renewable energy procurement.
• Engaging with landlords to encourage energy-efficient practices.
• Developing a company-wide environmental strategy encompassing e-waste.

Supply Chain Management

Responsible Procurement

• Arm Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Responsible Technology
• Social Impact and Innovation
• Governance

Environmental Achievements

• 77% reduction in GHG emissions across all scopes compared to FYE20 baseline
• Achieved 100% renewable electricity consumption

Social Achievements

• 6.1 million people reached directly through Arm-funded initiatives since 2015
• 95% of employees reported being proud to work for Arm (highest ever score)
• Over 10,000 hours volunteered through Team Arm

Governance Achievements

• Successful IPO in September 2023
• Adoption of Arm Group Governance Framework
• Implementation of enhanced Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Increased Scope 3 emissions due to increased spend, data completeness from suppliers, employee return to offices, and increased datacenter use
• Balancing the ever-escalating demand for compute power with environmental sustainability

Mitigation Strategies

• Engaging with supply chain to reduce their carbon footprint
• Maintaining 100% renewable electricity usage
• Implementing travel carbon budgets and supporting hybrid working
• Investing in avoided emissions offsets
• Supporting innovation in nature- and tech-based carbon removal solutions

Supply Chain Management

Supplier Audits: 59% of annual spend covered by emissions data from suppliers in FYE24. Pilot program with EcoVadis underway.

Responsible Procurement

• Supplier Code of Conduct
• CDP Supply Chain questionnaire
• EcoVadis assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards, UNGC

Certifications: ISO 9001

Third-party Assurance: RSM UK Risk Assurance Services LLP (limited assurance for Scope 1 and 2 emissions)

UN Sustainable Development Goals

• Not disclosed

Report mentions alignment with UN SDGs but doesn't explicitly list specific goals.

Sustainable Products & Innovation

• Energy-efficient Arm-based processors

Awards & Recognition

• Tech Deal of the Year 2023 at the U.K. Tech Awards
• Third Sector Business Charity Award Winner of 2024 Telecoms and Technology Award for the Arm and UNICEF partnership.