Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product energy efficiency and solutions
• Increasing access to technology
• AMD products address global challenges
• Supply chain responsibility

Environmental Achievements

• Exceeded annual GHG targets for manufacturing and non-manufacturing sites; achieved a 6% absolute reduction in GHG emissions for non-manufacturing sites and a 16% reduction per PI for manufacturing sites.
• Increased global waste diversion rate from 40% in 2009 to 51% in 2010.
• Reduced global occupational injury and illness case rate by 38% in 2010 compared to 2009.

Social Achievements

• Employee satisfaction with corporate responsibility programs averaged 83% favorable.
• More than 12,000 hours of employee volunteer service hours (a 13% increase from 2009).
• Launched “AMD Community Corps” to help employees make a positive impact in their communities.

Governance Achievements

• Updated Worldwide Standards of Business Conduct (WWSBC) in February 2011.
• Integrated SER criteria into the SSP rating process.
• Co-chaired a multi-stakeholder policy and diplomacy working group with the Enough Project on conflict minerals.

Climate Goals & Targets

Environmental Challenges

• Meeting 2014 GHG emission reduction goals due to projected growth and expansion.
• Meeting 2014 water reduction goals due to a manufacturing process change increasing water use.
• Addressing indirect environmental impacts from the supply chain.

Mitigation Strategies

• Evaluating renewable energy options.
• Identifying and evaluating water conservation opportunities.
• Initiating regular meetings with key suppliers to coordinate and evaluate environmental goals and performance.

Supply Chain Management

Supplier Audits: Approximately 19% of major supplier facilities underwent screening as of 3/1/2011

Responsible Procurement

• EICC Code of Conduct, ISM Principles of Social Responsibility

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as flooding or extreme heat and cold

Transition Risks

• Not disclosed

Opportunities

• AMD technology powering supercomputers used for climate change research; energy-efficient products.

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: ISO 14001 (manufacturing sites), OHSAS 18001 (manufacturing sites), ISO 9001:2000 (manufacturing sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AMD Fusion APUs (reduced carbon footprint)

Awards & Recognition

• Corporate Responsibility Award, Climate Innovation Index Leader, 100 Best Corporate Citizens List, Jiangsu Environment Friendly Enterprise, Take-On-Traffic, Global 1000 Sustainable Performance Leaders, Bicycle Friendly Business, Global Reputation Pulse Project, NASDAQ OMX CRD Global Sustainability 50 Index, Dow Jones Sustainability North American Index, Top 500 Green Companies in the United States

Environmental Metrics

ESG Focus Areas

• Digital Impact
• Environmental Stewardship
• Supply Chain Responsibility
• Diversity, Belonging and Inclusion

Environmental Achievements

• Reduced absolute greenhouse gas (GHG) emissions from AMD operations (scope 1 and 2) by 38 percent from 2014 (exceeding the 20 percent goal)
• Achieved a 31.7x increase in energy efficiency for mobile processors (exceeding the 25x20 goal)
• Sourced 28 percent of global energy use from renewable energy (34 million kWh)

Social Achievements

• Provided more than $26 million USD to universities, research institutes and community organizations for COVID-19 response (as of June 2021)
• 95% of employees reported being proud to work for AMD in 2020
• 7,050+ volunteer hours contributed by 3,110 employees in 71 company-sponsored events

Governance Achievements

• Formalized an ESG Executive Steering Committee to accelerate internal coordination
• Increased diversity representation as a component of company’s strategic metrics and milestones for incentive plan in 2021
• Updated AMD Human Rights Policy to clarify commitment to UN Guiding Principles on Business and Human Rights (UNGPs) and became a signatory to the UN Global Compact

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations, supply chains, and communities
• Underrepresentation of women and underrepresented groups in the technology industry

Mitigation Strategies

• Implemented best practices to mitigate virus spread, protect employee health, maintain business continuity, and support communities
• Created the AMD COVID-19 High Performance Compute (HPC) Fund and donated high-performance systems to research institutions
• Provided resources and benefits to support employees working from home
• Set new goals for 2025 and beyond to drive meaningful impact across the value chain, including increasing energy efficiency and diversity

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• RBA Code of Conduct
• Annual Supplier Acknowledgement Letter
• Standard contractual terms and conditions requiring conformance to laws and regulations and responsible conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Third-party review (limited assurance) for 2020 scope 1 and 2 GHG emissions

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient processors

Awards & Recognition

• Fortune Change the World
• Responsible Business Alliance Compass Award for Innovation

Environmental Metrics

ESG Focus Areas

• Digital Impact
• Diversity, Belonging and Inclusion
• Environmental Sustainability
• Supply Chain Responsibility

Environmental Achievements

• 25 percent reduction in scope 1 and 2 emissions in 2021 (compared to 2020)
• 6.8x improvement in energy efficiency for accelerated compute nodes by mid-2022 (compared to 2020)
• 74 percent of manufacturing suppliers had public GHG goals in 2021
• 74 percent of manufacturing suppliers sourced renewable energy in 2021

Social Achievements

• 52 percent of AMD employees participated in employee resource groups and/or other inclusion initiatives in 2021
• Exceeded hiring goals for female engineers and under-represented groups in the US in 2021
• Donated more than 325 refurbished AMD-powered laptops and desktops to Boys & Girls Clubs

Governance Achievements

• Established a new Chief Compliance Officer role and office in 2022
• Created a stand-alone global anti-corruption policy in 2021
• Updated Human Rights Policy in 2021 to reflect commitment to UNGPs

Climate Goals & Targets

Environmental Challenges

• Maintaining high ethical standards and compliance across a global supply chain
• Addressing working hours violations and payment of restricted employment-related fees in the supply chain
• Managing health and safety issues, particularly emergency preparedness, in the supply chain

Mitigation Strategies

• Conducting regular RBA audits and implementing corrective action plans
• Providing capacity-building activities and training to suppliers
• Collaborating with industry groups and stakeholders to address systemic issues
• Communicating with suppliers on the importance of upholding labor standards and providing resources

Supply Chain Management

Supplier Audits: 43 audits in 2021

Responsible Procurement

• AMD Supplier Code of Conduct (based on RBA Code of Conduct)
• Supplier self-assessment questionnaires
• Risk-based approach to supplier selection and auditing
• Capacity-building activities and training for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in markets that prioritize ESG

Reporting Standards

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

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Bureau Veritas (limited assurance for Scope 1 & 2 GHG emissions and Scope 3 emissions for business air travel)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)

AMD's initiatives contribute to these goals through energy efficiency improvements, sustainable supply chain practices, and support for climate research

Sustainable Products & Innovation

• Energy-efficient processors and accelerators

Awards & Recognition

• Best Sustainability Innovation in HPC award (LUMI supercomputer)
• Bloomberg Gender Equality Index
• Human Rights Campaign Corporate Equality Index

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Risk
• Reputational Risk
• Supply Chain Sustainability

Environmental Achievements

• Pursuing a science-based target of a 50 percent absolute reduction in greenhouse gas emissions from the Company’s operations (Scope 1 and 2) by 2030, from a 2020 base year.

Climate Goals & Targets

Environmental Challenges

• Potential indirect consequences of climate-related regulation or business trends on customer demand, supplier impacts, and reputational risks.
• Water availability and quality risks impacting direct wafer manufacturing suppliers.
• Severe weather impacting customers.

Mitigation Strategies

• Customer engagement processes to assess demand, including monitoring customer demand through direct customer discussions, external market surveys, external market analysis, and assessments of sales, forecasts, shipment volumes, and inventory levels.
• Regular water risk assessment, including supplier engagement and mitigation plans.
• Business continuity program and contingency plans to mitigate risks from severe weather events.
• Engagement with major customers to understand customer demand forecasts and logistics.

Supply Chain Management

Supplier Audits: Annual surveys of a large portion of direct manufacturing suppliers to assess their environmental performance

Responsible Procurement

• Contractual terms and conditions
• Annual communication of the Company’s supplier code of conduct
• Periodic supplier business reviews and performance scorecards

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather impacting customers and suppliers

Transition Risks

• Decreased demand for goods or services that produce significant greenhouse gas emissions or are related to carbon-based energy sources
• Increased competition to develop innovative new products that result in lower emissions
• Increased demand for generation and transmission of energy from alternative energy sources

Opportunities

• Increased demand for energy-efficient products

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water

Environmental Achievements

• Increased renewable energy sourcing to 94 GWh, amounting to 40% of total global energy use (compared to the revised 2020 baseline of 18%).
• Achieved a 24.5 percent reduction in Scope 1 and 2 emissions compared to 2020.
• Total water use decreased from 2022-2023 from suppliers. A 34% annual increase in recycled water use from fabs producing wafers for AMD.

Social Achievements

• Expanded the AMD Supplier Responsibility Guide to include more specificity on how to comply with AMD expectations and the Code standards, such as good practices for setting science-based GHG emissions reduction goals, assessing the risk of child labor, and emergency preparedness.

Governance Achievements

• AMD is a founding member of the Semiconductor Climate Consortium and a sponsor of its Energy Collaborative.

Climate Goals & Targets

Environmental Challenges

• More frequent and severe occurrences of extreme weather events such as tropical cyclones may damage and disrupt supplier operations.
• AMD has two supplier facilities in China that are in high or extremely high water risk.
• Varying availability and stability of renewable energy across regions in which AMD and its direct suppliers operate may cause difficulties in a global transition to renewables.
• As more jurisdictions adopt carbon pricing mechanisms, AMD could be subject to additional costs from direct scope 1 emissions, as well as indirectly through supplier emissions (scope 3).
• AMD offices in Shanghai China, Bangalore and Hyderabad India, and Longmont USA are in areas the WRI Aqueduct rates as high or extremely high in water risks.

Mitigation Strategies

• Increase supplier diversification
• Engage with suppliers
• Engage in multi-stakeholder initiatives
• Increased use of sustainably sourced materials
• Adopt water efficiency, water reuse, recycling and conservation practices

Supply Chain Management

Supplier Audits: 44 in 2023

Responsible Procurement

• AMD Supplier Responsibility Guide

Climate-Related Risks & Opportunities

Physical Risks

• Tropical Cyclones
• Flooding
• Drought

Transition Risks

• Carbon pricing mechanisms
• Lack of availability and/or increased cost of recycled or renewable content

Opportunities

• Increased sales of existing products and services due to energy efficiency
• Access to sustainability linked loans
• Improved supply chain engagement

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: Null

Third-party Assurance: LRQA

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AMD Ryzen 7000 series processors
• AMD EPYC processors

Awards & Recognition

• Not disclosed