Veeco Instruments Inc.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:22.16 thousand metric tons CO2e (Scope 1 & 2)

Scope 1 Emissions:8.73 thousand metric tons CO2e

Scope 2 Emissions:13.43 thousand metric tons CO2e

Scope 3 Emissions:See report for incomplete data (business air travel only)

Renewable Energy Share:40% (US electricity consumption)

Total Energy Consumption:48.7 GWh (US facilities)

Water Consumption:52.9 megaliters (US facilities)

Waste Generated:See report for hazardous waste data; non-hazardous waste data incomplete.

ESG Focus Areas

Climate Change
Diversity & Inclusion
Supply Chain Responsibility
Product Responsibility
Governance

Environmental Achievements

Issued first climate goal to reduce normalized emissions by 10% and obtain at least 50% of energy from renewable sources by 2030 for US facilities.
Transitioned to a new, more energy-efficient facility in San Jose.
Improved tracking, calculation methodology, and disclosure for key environmental data.
Expanded product chemical compliance program.

Social Achievements

Set targets to increase representation of women and underrepresented employees.
Established a Diversity & Inclusion Council.
Appointed Lena Nicolaides to the Board as third female director.
Awarded scholarships to high school students pursuing STEM degrees in partnership with the NAACP.
Expanded charitable giving and community outreach.
Increased frequency of employee satisfaction surveys.
Provided additional compensation to employees to manage inflationary pressures.
Updated Human Rights policy.

Governance Achievements

Established a relationship with the S&P Corporate Sustainability Assessment (CSA).
Expanded ESG reporting to include the SASB framework.
Expanded CDP engagement to include Climate and Water surveys.

Climate Goals & Targets

Medium-term Goals:

Increase the representation of women at Veeco in the U.S. to 20% by 2025.
Source 50% renewable energy for U.S. operations by 2030.

Short-term Goals:

Reduce normalized emissions from heating and purchased electricity (scope 1 and 2) by 10% in the U.S. by 2025 from a 2021 baseline.

Environmental Challenges

Global supply chain disruptions due to global and regional conflicts, COVID-19 mitigation, constrained labor markets, and increased global demand.
Increased lead times and costs due to supply chain disruptions.

Mitigation Strategies

Buying in advance and re-sourcing components more frequently.
Monitoring the global supply chain to minimize disruption to customers.

Supply Chain Management

Supplier Audits: Periodic onsite audits for critical suppliers, particularly in Asia-Pacific region.

Responsible Procurement

Supplier Code of Conduct
Screening for criminality, fraud, debarment

Climate-Related Risks & Opportunities

Physical Risks

Natural disasters and extreme weather events

Transition Risks

Regulation
Market demand
Business reputation

Opportunities

Technology demand
Efficiency and circularity
Cooperation

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB

Certifications: ISO 9001:2015 (Somerset, NJ, Plainview, NY, Horsham, PA, and San Jose, CA), ISO 14001 (San Jose)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:16.4 MT CO2e / $M Revenue (Scope 1 & 2)

Scope 3 Emissions:4,4790 metric tons CO2e (air travel only)

Renewable Energy Share:37.7% (US)

Total Energy Consumption:37.4 GWh/year (US)

Water Consumption:31.7 megaliters/year (US)

Waste Generated:Data not fully comprehensive, only select hazardous, e-waste, and recycling streams reported. 57% of e-waste recycled in 2023.