Climate Change Data

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• 100% carbon-free electricity at Milpitas and Belgium sites
• 100% waste diversion at SPTS Wales site
• 88% waste diversion at Milpitas site in 2020
• 3% reduction in electricity consumption at KLA Israel in 2019 by changing to LED lamps and applying Blygold® coating to chillers
• 97% of electricity from carbon-free sources at Wales site in 2020
• Reduced total packaging materials (polyurethane) by 75% in 2019

Social Achievements

• Launched Inclusion and Diversity (I&D) team, named a chief inclusion and diversity officer and rolled out a global I&D strategy
• Donated $8.5 million in total 2020 community giving, including $2 million for global COVID-19 relief and $1 million to address systemic racial inequities
• Established a Social Equity Fund in collaboration with the American Heart Association ($1.5 million)
• Offered remote learning and childcare leave for employees in the U.S. and some other locations
• Provided up to 10 days paid leave for employees in our U.S. and India offices who were sick or caring for sick loved ones
• Implemented a freshwater reduction program at Orbotech site in Israel

Governance Achievements

• Hired first chief information security officer and chief compliance officer in 2019
• 100% of employees engaged with trainings offered through the Corporate Learning Center
• Established an ESG Steering Committee composed of KLA executives

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disrupting normal operations
• Racial injustice and unrest
• Global supply chain disruptions
• Increased environmental footprint due to business growth and acquisitions
• Cybersecurity threats and intellectual property breaches

Mitigation Strategies

• Implemented temperature checks and daily testing for essential staff
• Repurposed 3D printers to produce face shields for healthcare workers
• Helped procure more than $300,000 in PPE supplies with KLA Foundation donating $100,000
• Formalized commitment to inclusion and diversity
• Created a three-year strategic plan to minimize supply chain disruptions and increase diversity
• Integrated best practices from acquisitions into regional and global environmental programs
• Strengthened cybersecurity measures and employee training

Supply Chain Management

Supplier Audits: 85% completion of the Responsible Business Alliance Supplier Assessment Questionnaire by key suppliers

Responsible Procurement

• Responsible Business Alliance (RBA) Code of Conduct requirements
• KLA Supply Chain/Human Rights Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• Direct imaging solutions reducing waste and water consumption
• Plasma dicing solution for semiconductor devices

Awards & Recognition

• Intel 2020 Supplier Achievement Award
• VLSI Research Best Suppliers of 2019
• Queen’s Award for Enterprise in Innovation (SPTS)

Environmental Metrics

ESG Focus Areas

• Climate & Energy
• Materials & Waste
• Water Management
• Talent Development
• Health, Safety & Well-being
• Inclusion & Diversity
• Community Engagement
• Human & Labor Rights
• Product & Service Innovation
• IP Protection
• Cyber Security
• Corporate Governance
• Business Ethics & Compliance

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)
• 94/100 score on annual Employee Engagement Survey (85% response rate)
• $3.9 million invested in grants via the KLA Foundation
• Wales site received RoSPA Occupational Health and Safety Gold Medal Award for the 9th year in a row

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

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Global trade compliance issues (China-U.S. trade conflict, Russia's invasion of Ukraine)

Mitigation Strategies

• Developed alternative sourcing strategies
• Hired new trade compliance specialists
• Invested in IT enhancements to mitigate trade compliance risks
• Conducted independent assessments of trade compliance controls

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

• Training Magazine Top 10 Hall of Fame

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 7.0% from 2021 baseline.
• Increased renewable energy share to 55% in 2022 from 52% in 2021.

Social Achievements

• Not disclosed

Governance Achievements

• Established a new executive committee to oversee ESG strategy, including climate-related issues.
• Linked executive compensation to ESG performance, including climate-related targets.

Climate Goals & Targets

Environmental Challenges

• Potential for extreme weather events to disrupt supply chain operations.
• Potential for changing customer preferences toward more energy-efficient products to reduce demand for KLA's products.

Mitigation Strategies

• Redundancy, Business Continuity Plans, and disaster recovery plans in place to mitigate business interruption and ensure resilience.
• Developing a product energy efficiency strategy that incorporates efficiency metrics into product development processes.

Supply Chain Management

Supplier Audits: 80% of direct spend suppliers engaged in RBA SAQ

Responsible Procurement

• RBA Facility Supplier Assessment Questionnaire (SAQ)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Power outages
• Property damage
• Site closures

Transition Risks

• Changing customer preferences
• Emerging carbon regulations

Opportunities

• Innovation to enhance product efficiency
• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, GHG Protocol

Certifications: ISO 14001

Third-party Assurance: Third-party limited assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed