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 are also committed to transparency in our processes and performance and will continue to 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
- On Track
- Achieved
| Goal | Status | 2022 Progress |
|---|---|---|
| Goal Continue to expand our disclosure and alignment with industry-recognized frameworks and standards |
Status | 2022 Progress Our efforts to increase disclosure raised our ratings and rankings with third parties |
| Goal | Status | 2022 Progress |
|---|---|---|
| Goal 83% of customers measured by emissions set science-based targets (SBTs)1 |
Status | 2022 Progress 16.9% of customers as measured by emissions have set SBTs |
| Goal | Status | 2022 Progress |
|---|---|---|
| Achieve net zero emissions by 2050 by meeting the following targets: | ||
| Goal Achieve 100% renewable electricity by 20302 |
Status | 2022 Progress Sourced 44% renewable electricity globally in 2022 |
| 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 operations3 |
Status | 2022 Progress 207% increase in Scope 1 and 2 (market-based) GHG emissions4 |
| Goal Achieve 12 million kilowatt-hours (kWh) in total energy savings from a 2019 baseline |
Status | 2022 Progress Achieved 6.9 million kWh in energy savings |
| Goal Achieve zero waste to landfill for hazardous waste |
Status | 2022 Progress Diverted 99.99% of hazardous waste from landfills in 2022 |
| Goal Achieve 17 million gallons of water savings (15%) in water-stressed regions from a 2019 baseline |
Status | 2022 Progress
|
| Goal | Status | 2022 Progress |
|---|---|---|
| Goal Build on our high-performance culture with global employee engagement at the global benchmark as measured by our annual employee survey |
Status | 2022 Progress Ended the year with an engagement score of 78, one point below the global top tier benchmark of 79 |
| Goal Maintain an Occupational Safety and Health Administration (OSHA) recordable injury rate at or below 0.4 annually |
Status | 2022 Progress Realized recordable injury rate of 0.35 |
| Goal Increase the proportion of women (globally) and underrepresented employees (U.S.) across the company |
Status | 2022 Progress Increased the proportion of women in our global workforce by 3.0% and underrepresented employees in the U.S. by 5.0% over 2021 |
| Goal | Status | 2022 Progress |
|---|---|---|
| Goal Achieve more than 90% compliance rate with our social and environmental expectations across our top-tier suppliers |
Status | 2022 Progress Exceeded our goal with 94% of suppliers responding to our conflict minerals survey |
| Goal Engage with at least 50% of our top-tier suppliers on environmental sustainability opportunities |
Status | 2022 Progress Exceeded our goal by engaging with 100% of top-tier suppliers in 2022 |
| Goal Increase engagement with all suppliers on social and environmental topics through assessment, training, and capacity building |
Status | 2022 Progress Deepened supplier engagement through our inaugural ESG Supplier Forum, new supplier engagement platform, new monthly webinar series and newsletter, and additional trainings via the Responsible Business Alliance (RBA) |
| Goal 46.5% of suppliers by emissions will set SBTs5 |
Status | 2022 Progress 14.5% of suppliers as measured by emissions have set SBTs |
| Goal | Status | 2022 Progress |
|---|---|---|
| Goal Determine key targets for larger-scale impact aligned to a new strategic focus |
Status | 2022 Progress Achieved our goal by launching a new social impact framework with three strategic focus areas to guide our giving and signature program initiatives |
| Goal Implement measurement of outcomes for key program and large-scale grants |
Status | 2022 Progress Began developing a reporting process and measurement outcomes |
| Goal Increase annual unique participation rate in all employee giving programs from 10% to 30% |
Status | 2022 Progress Increased annual unique employee participation rate from 10% in 2021 to 18% in 2022 |
| Goal Increase employee volunteer hours by 33% from a 2019 baseline |
Status | 2022 Progress Achieved and surpassed our goal with employees completing 21,133 volunteer hours in 2022 for a total increase of 58% from a 2019 baseline6 and set a new goal to achieve 40,000 by end of 2025 |
- Previously, this goal targeted SBTs for 83% of customers by revenue by 2025. Lam updated this goal in 2022 per the SBTi verification and approval process.
- Previously, this goal targeted 100% renewable energy by 2030. Lam updated this goal in 2022 per the SBTi verification and approval process.
- Previously, the 2030 goal targeted a 46% reduction in Scope 1 and 2 (market-based) GHG emissions. Due to a previously unidentified source of Scope 1 emissions, Lam worked with SBTi to update our 2019 emissions inventory and restate our 2030 goal.
- Primarily due to the increase in usage of a specific chemical in our testing process between 2019 and 2022.
- Previously, this goal targeted SBTs for 80% of top direct suppliers by spend by 2025 and 95% by 2030. Lam updated this goal in 2022 per the SBTi verification and approval process.
- Based on data tracked through our community engagement platform.
We aspire to integrate ESG into everything we do
Strategic pillars and material topics
Our ESG strategy consists of six pillars that reflect areas where we can make a significant environmental, social, and economic impact. We identified these areas—known as material ESG topics—by engaging key internal and external stakeholders in an in-depth 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
- •Investing in 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
- •Regular Supplier Town Halls
- •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 topics:
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 universal 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 are expected to continue to impact our profitability; supply chain disruptions have limited and are expected to limit our ability to meet demand for our products; the severity, magnitude, and duration of the COVID-19 pandemic (and the related governmental, public health, business, and community responses to it), and its impacts on our business, results of operations, and financial condition, are evolving and are highly uncertain and unpredictable; and widespread outbreaks of illness 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.