Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy and Emissions
• Waste and Efficiency
• Human Rights and Labor Practices
• Diversity and Inclusion

Environmental Achievements

• 3.8% year-over-year reduction in energy usage
• 25% year-over-year reduction in energy intensity
• 5.2% year-over-year reduction in Scope 1 emissions CO2e
• 26.3% year-over-year reduction in Scope 2 emissions CO2e
• Recycling of 8,300 drives and avoidance of over four metric tons of waste through Easy Recycle program
• 95% water reclamation ratio at Shanghai facility
• Conservation of 64 million gallons of water annually at Shenzhen facility

Social Achievements

• Published first global human rights policy
• Launched a human rights impact assessment
• Half of Board of Directors were women at the start of fiscal year 2021
• Joined the Business Coalition for the Equality Act
• Received Dov Lautmann award for diversity and inclusion
• Achieved top Platinum Plus rating for corporate social responsibility from Maala for the seventh year in a row
• Mobilized operational expertise to procure and distribute approximately 250,000 pieces of personal protective equipment to frontline workers
• Organized more than $2.7M in employee and corporate donations to nonprofit organizations

Governance Achievements

• Named one of the 2020 World’s Most Ethical Companies by Ethisphere for the second year in a row
• Shanghai manufacturing facility received a Factory of Choice award from the Responsible Business Alliance

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Supply chain disruptions

Mitigation Strategies

• Adopted enhanced health protection measures at factories
• Procured and distributed PPE
• Organized donations to ease pandemic burdens

Supply Chain Management

Responsible Procurement

• Global human rights policy based on international standards and Responsible Business Alliance norms

Climate-Related Risks & Opportunities

Awards & Recognition

• 2020 World’s Most Ethical Companies by Ethisphere
• Dov Lautmann award for diversity and inclusion
• Platinum Plus rating for corporate social responsibility from Maala

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain
• Workforce
• Global Giving
• Integrity

Environmental Achievements

• Reduced Scope 1 and 2 emissions by more than 14% compared to the FY2020 baseline.
• Penang facility reduced emissions per unit of production by approximately 40% (compared to 2017) using IoT capabilities.
• Recycled 21,400+ devices through Easy Recycle Program.
• Reduced energy intensity to manufacture products by more than 13% from FY2021 to FY2022.

Social Achievements

• Launched a self-identification initiative to better understand employee demographics.
• Women represented 26% of management positions and 23% of technical staff in FY2022.
• Members of Asian, Black/African American, Hispanic/Latino or other racially or ethnically diverse communities represented 60% of US management positions.
• Percentage point increases of 2.5 for women, 1.4 for Hispanic/Latino and 1.0 for multiracial representation among new college graduates in FY2022.
• Provided more than $1 million to nonprofit organizations working towards equality.

Governance Achievements

• Recognized for the fourth consecutive year as one of the World’s Most Ethical Companies by the Ethisphere Institute.
• Achieved 100% completion rate for annual Compliance Awareness Month training.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on global operations and supply chain.
• Supply chain disruptions.
• Heightened stakeholder expectations regarding ESG performance.

Mitigation Strategies

• Adopted science-based emission reduction targets.
• Launched a Vulnerability Assessment Program to review climate-related risks.
• Joined the First Movers Coalition to spur climate-related innovation.
• Implemented analytics-driven predictive procurement processes to enhance supply chain resilience.
• Engaged with suppliers through CDP to encourage transparency and progress.

Supply Chain Management

Supplier Audits: 64% of Tier 1 supplier facilities audited in the RBA Validated Assessment Program in FY2022.

Responsible Procurement

• Supplier Code of Conduct
• RBA Code of Conduct
• Responsible Minerals Initiative (RMI)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Hardware Standard, SASB Semiconductors Standard, UN Sustainable Development Goals (UN SDGs), Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Limited assurance

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

The report details how Western Digital's initiatives contribute to these goals.

Sustainable Products & Innovation

• 26TB Ultrastar DC HC670 UltraSMR HDD
• 22TB Ultrastar DC HC570 CMR HDD
• SanDisk Ultra Eco™ USB

Awards & Recognition

• World’s Most Ethical Companies (Ethisphere)
• Women’s Choice Award (Best Company for Women, Best Company for Millennials, Best Company for Diversity)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved a 20.7% reduction in combined Scope 1 and 2 emissions versus FY2020 baseline.
• Achieved 31% renewable electricity consumption company-wide.
• Three sites running on 100% renewable energy.
• 18% reduction in water withdrawals versus FY2022.
• Reduction in emissions intensity in Scope 3, Category 11 Use of Sold Products by 35% on an emissions per petabyte basis since FY2020.
• Third-party verification confirming 40-41% recycled content by weight in recent HDD products.

Social Achievements

• Women represented 26% of management positions and 23% of technical staff.
• 62% of U.S. management positions represented by members of Asian, Black/African American, Hispanic/Latino or other racially or ethnically diverse communities.
• Nearly 2,000 employees completed upskilling programs.
• 23.8 percentage point increase in employee participation in company-sponsored volunteerism from FY22.
• Engaged 18,629 unique volunteers in 241 company-sponsored volunteer events.

Governance Achievements

• 100% completion rate for annual online ethics and compliance training.
• Fifth consecutive year being honored on Ethisphere’s World’s Most Ethical Companies list.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change related risks (extreme weather events, etc.)

Mitigation Strategies

• Developed alternative sourcing strategies
• Vulnerability Assessment program to cope with climate-change-related risks.
• Corporate-wide Business Continuity Program.
• Implementation of analytics-driven predictive procurement processes.
• Widening supply base by qualifying additional suppliers.

Supply Chain Management

Supplier Audits: 84% of supplier facilities audited through RBA Validated Assessment Program.

Responsible Procurement

• Supplier Code of Conduct
• RBA Code of Conduct
• Responsible Minerals Initiative (RMI)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Hardware Standard, SASB Semiconductors Standard, UN Sustainable Development Goals (UN SDGs), Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Limited assurance (FY2023 data)

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 7: Affordable and Clean Energy
• SDG 13: Climate Action

Initiatives described throughout the report contribute to these goals.

Sustainable Products & Innovation

• Energy-efficient HDD and flash-based products
• Products with increased recycled content

Awards & Recognition

• Women’s Choice Award for Best Companies for Women, Best Companies for Millennials, and Best Companies for Diversity
• Ethisphere’s World’s Most Ethical Companies

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity and Inclusion
• Supply Chain Responsibility
• Data Privacy and Security
• Human Rights
• Global Giving

Environmental Achievements

• Reduced energy intensity to manufacture products by more than 43% from FY2020 to FY2021
• Reduced aggregate Scope 1 and market-based Scope 2 emissions by more than 6% from FY2020 to FY2021
• Completed life cycle assessments of six high-volume products
• Recycled more than 13,500 drives and diverted more than six metric tons of waste from landfills through the Easy Recycle program
• Removed approximately 45 tons of waste from the waste stream in Thailand
• Improved wastewater treatment plant at Great Oaks facility in San Jose, saving an estimated 50,000 cubic meters of water per year

Social Achievements

• Implemented health and safety measures and work-from-home options during the COVID-19 pandemic
• Partnered with the Responsible Business Alliance (RBA) to protect human rights and uphold labor practices
• Rolled out RBA's e-Learning program to educate suppliers
• Conducted a global Human Rights Impact Assessment
• Reimbursed over USD 523,000 in recruitment fees to employees within the supply chain
• Achieved a worldwide voluntary turnover rate of 9.7% in FY2021 (below the industry average)
• Implemented a continuous employee listening platform with 92% participation rate
• Expanded the Advancing Women in Leadership program, graduating 64 women from 14 countries

Governance Achievements

• Launched Western Digital’s Privacy Portal
• Emphasized the importance of high ethical standards to employees
• Achieved gender parity on the Board of Directors (5 out of 10 women directors)
• Completed unconscious bias and anti-discrimination training for US people managers and non-factory employees
• Experienced zero dollars in fines for product environmental non-compliance in FY2021
• Experienced zero reportable security incidents of personal data during the reporting period

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Climate change impacts on global operations
• Ensuring responsible sourcing of critical minerals
• Maintaining data privacy and security in a rapidly changing digital landscape

Mitigation Strategies

• Developed and deployed AI and machine learning capabilities to predict and mitigate supply chain risks
• Adopted science-based targets to reduce GHG emissions by 42% by 2030
• Completed a TCFD-aligned climate scenario analysis to identify risks and opportunities
• Implemented a comprehensive anti-bribery and corruption program
• Partnered with BSR to conduct an independent human rights impact assessment
• Implemented a continuous employee listening platform to improve employee experience

Supply Chain Management

Supplier Audits: 62% of Tier 1 supplier facilities audited in FY2021

Responsible Procurement

• RBA Code of Conduct
• Supplier Code of Conduct
• Responsible Minerals Program
• CDP Climate Change and Water Security questionnaires

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Hardware Standard, SASB Semiconductors Standard, UN Sustainable Development Goals (UN SDGs), Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Cameron Cole, LLC

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 13

Initiatives align with promoting sustained economic growth, ensuring sustainable consumption and production, and taking urgent action to combat climate change

Sustainable Products & Innovation

• Energy-efficient HDDs and SSDs

Awards & Recognition

• World Economic Forum Advanced 4IR Lighthouses designation
• MAALA ESG Index 2021: Platinum Plus rating
• 2020 Pro Patria Award
• 2021 Best Company for Millennials and Best Company for Diversity (Women’s Choice Award)
• One of America’s Most Responsible Companies (Newsweek)
• One of the World’s Most Ethical Companies (Ethisphere)
• Responsible Business Alliance Factory of Choice Award