ESG Strategy - Lam Research
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ESG Strategy

Today’s environmental, social, and governance investments unlock new possibilities for the semiconductor future.

At Lam, our ESG strategy provides a framework for focused action. From our day-to-day decisions to our long-term relationships and investments, the strategy supports a holistic and proactive approach to managing ESG-related opportunities and risks.

We emphasize accountability and conduct regular progress assessments to advance our ESG goals. We aspire to transparency in our processes and performance and strive to continuously expand Lam’s disclosures in alignment with industry-recognized frameworks, best practices, and standards.

Our ESG mission


 

We elevate human prosperity and protect the environment in our operations, supply chain, and the products we create.

ESG goals

Our ESG goals keep us focused and accountable for building momentum across our ESG pillars. Unless stated otherwise, we aim to complete each of our ESG goals by 2025.

 

  • Behind Schedule Behind Schedule
  • In Progress In Progress
  • Achieved Achieved
Governance
Goal Status 2023 Progress
Goal

Continue to expand our disclosure and alignment with industry-recognized frameworks and standards.

Status In Progress Achieved Behind Schedule 2023 Progress

Our efforts to increase disclosure maintained or improved our ratings and rankings with third parties.

Product innovation1
Goal Status 2023 Progress
Goal

83% of customers measured by emissions have science-based targets (SBTs).

Status In Progress Achieved Behind Schedule 2023 Progress

10% of customers as measured by emissions have set SBTs.

Sustainable operations1
Goal Status 2023 Progress
Achieve net zero emissions by 2050, including by meeting the following targets:
Goal

Achieve 100% renewable electricity by 2030.

Status In Progress Achieved Behind Schedule 2023 Progress

Sourced 50% renewable electricity globally in 2023.

Goal

Reduce absolute Scope 1 and 2 (market-based) greenhouse gas (GHG) emissions 25% by 2025 and 60.6% by 2030 from a 2019 baseline. By 2040, achieve net zero operations.

Status In Progress Achieved Behind Schedule 2023 Progress

51% decrease year-over-year and 48% increase from a 2019 baseline for Scope 1 and 2 (market-based) GHG emissions.

Goal

Achieve 12 million kilowatt-hours (kWh) in total energy savings from a 2019 baseline.

Status In Progress Achieved Behind Schedule 2023 Progress

Achieved 2.8 million kWh in annual energy savings, for a cumulative 9.8 million kWh in savings towards our 2025 goal.

Goal

Achieve zero waste to landfill for hazardous waste.

Status In Progress Achieved Behind Schedule 2023 Progress

Diverted 99.97% of hazardous waste from landfills in 2023.

Goal

Achieve 80 million gallons of water savings from a 2019 baseline.

Status In Progress Achieved Behind Schedule 2023 Progress

Achieved 65.9 million gallons of water savings from a 2019 baseline, including 20.1 million gallons in 2023.

Workplace
Goal Status 2023 Progress
Goal

Build on our high-performance culture with global employee engagement at the global benchmark as measured by our annual employee survey.

Status In Progress Achieved Behind Schedule 2023 Progress

Ended the year with an engagement score of 76, two points below the global top 25% benchmark.

Goal

Maintain an Occupational Safety and Health Administration (OSHA) recordable injury rate at or below 0.4 annually.

Status In Progress Achieved Behind Schedule 2023 Progress

Realized recordable injury rate of 0.33.

Goal

Increase the proportion of women (globally) and underrepresented employees (U.S.) across the company.

Status In Progress Achieved Behind Schedule 2023 Progress

Increased the proportion of women in our global workforce by 2.5%. Decrease in proportion of underrepresented employees (U.S.) by 5.4%.

Responsible supply chain1
Goal Status 2023 Progress
Goal

Achieve more than 90% compliance with our social and environmental expectations across our top suppliers.

Status In Progress Achieved Behind Schedule 2023 Progress

Exceeded our goal with 94% of top suppliers responding to our conflict minerals survey.

Goal

Engage with at least 50% of our top suppliers on environmental sustainability opportunities.

Status In Progress Achieved Behind Schedule 2023 Progress

Engaged with 100% of top suppliers.

Goal

Increase engagement with suppliers on social and environmental topics through assessment, training, and capacity building.

Status In Progress Achieved Behind Schedule 2023 Progress

Deepened supplier engagement through our second-annual Supplier ESG Forum, monthly webinar series and newsletters, and energy assessments.

Goal

46.5% of suppliers by emissions have SBTs.

Status In Progress Achieved Behind Schedule 2023 Progress

26% of suppliers as measured by emissions have set SBTs.

Community
Goal Status 2023 Progress
Goal

Determine key targets for larger-scale impact aligned to a new strategic focus.

Status In Progress Achieved Behind Schedule 2023 Progress

Achieved by launching our Powering Breakthroughs Together social impact framework with strategic focus areas to guide our giving and signature program initiatives.

Goal

Implement measurement of outcomes for key program and large-scale grants.

Status In Progress Achieved Behind Schedule 2023 Progress

Continued to develop, refine, and test our reporting process for key programs and large-scale grants.

Goal

Increase annual unique participation rate in all employee giving programs from 10% to 30%.

Status In Progress Achieved Behind Schedule 2023 Progress

Increased annual unique employee participation rate from 18% in 2022 to 20% in 2023.

Goal

Contribute 40,000 employee volunteer hours annually.

Status In Progress Achieved Behind Schedule 2023 Progress

Contributed 30,677 employee volunteer hours in 2023.

We aspire to integrate ESG into everything we do

In our workspaces and across our supply chain

Integrity

Our Ethics and Compliance program is rooted in our Core Values. We earn our customers’ trust by aiming to make what we do reliable and accurate. We strive to execute with the highest level of quality, integrity, and sound governance.

Employee well-being

Our employees deliver success for Lam, and in return, we deliver the resources they need to thrive. We strive to provide competitive benefits that foster professional and personal growth and well-being.

Responsibility

We aspire to approach our supply chain with the same focus on human rights, the environment, and diversity that we apply to our own business—and we work to hold our suppliers to these same standards.

Inclusive culture

We aspire to foster a diverse and equitable culture where every person feels valued, included, and empowered to achieve their full potential.

Net zero future

To contribute to a more sustainable world, we have established goals to operate on 100 percent renewable electricity by 2030 and become net zero by 2050.

Sustainable operations

We are making progress toward our 2025 sustainable operations goals in energy savings, water conservation, waste diversion, and GHG emissions reduction.

Efficient products

We intend to continually innovate to provide customers with sustainable solutions, like the Sense.i product family, which delivers energy reductions and uses less raw materials in its vertical, space-saving design.

Strong communities

We support our communities to build a better world for generations to come

External engagements

Through academic and industry engagement, we collaborate with the global semiconductor technology community to accelerate innovation.

Strategic pillars and material ESG topics

Our ESG strategy consists of six pillars that reflect areas where we can make the most meaningful environmental, social, and economic impact. We identified these areas—known as material ESG topics2—by engaging key internal and external stakeholders in an in-depth ESG materiality assessment. We conduct these assessments every three-to-five years, or whenever there’s a notable shift in our industry or business. Our most recent assessment took place in 2022.

  • Business and
    governance
  • Products and
    customers
  • Sustainable
    operations
  • Our workplace
  • Responsible supply
    chain
  • Our communities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Community

  • Collaborating & volunteering
  • Supporting philanthropic causes
  • Participating in conferences and forums

Customers

  • Connecting through our Global Customer Operations & Customer Support Business Group
  • Participating in industry conferences
  • Conducting regular business review meetings

Employees

  • Sponsoring & supporting our employee resource groups
  • Conducting meetings & surveys
  • Discussing/fostering performance & development

Industry organizations

  • Collaborating as an active member
  • Sponsoring & participating in conferences

Policymakers

  • Direct engagement through our Global Government Affairs group
  • Trade organization participation such as the National Association of Manufacturers, SEMI, and the Semiconductor Industry
    Association

Stockholders

  • Annual meeting of stockholders
  • Participation in conferences and forums
  • Quarterly earnings conference calls
  • Regular calls and in-person meetings

Suppliers

  • Annual ESG supplier surveys
  • Annual Supplier Day (with Excellence Awards)
  • Monthly supplier scorecard reviews
  • Strategic business reviews
    as needed

Contributing to the United Nations Sustainable
Development Goals (UN SDGs)

We recognize the value of the United Nations’ 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). These goals play an important role in building a more equitable, inclusive, and sustainable future. We have identified the following SDGs as being most relevant to Lam’s material ESG topics:

SDG3: Good Health and Well-BeingSDG4: Quality EducationSDG8: Decent Work and Economic GrowthSDG10: Reduce InequalitiesSDG13: Climate Action

Through our ESG strategy, Lam is working to accelerate progress toward each of these goals. Lam is also a member of the UN Global Compact (UNGC) and we support the UNGC’s Ten Principles for labor, environment, anti-corruption, and human rights.

Caution regarding forward-looking statements

 

Statements made on our Company webpage that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our goal to be net zero by 2050, our ESG strategy and related goals, our renewable electricity goals, our continued commitment to business integrity, the strength and effectiveness of our ethics and compliance framework, our environmental footprint, sustainability in our industry, our social impacts, our inclusion and diversity initiatives, and the sustainability of our products and operations. Some factors that may affect these forward-looking statements include: trade regulations, export controls, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; supply chain cost increases and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our most recent annual report on Form 10-K and our quarterly report on Form 10-Q. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update any forward-looking statements.

 

 

  1. For more information on our methodology, please see the About this Report page of our 2023 ESG report.
  2. The identification of a topic or other matter as “material” for purposes of this report does not, and should not be interpreted to, mean that it is material for any other purpose, including for the purpose of our financial statements or the documents we file with the U.S. Securities and Exchange Commission.
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