Our initiatives encompass many aspects of our business—from the way we manage our workforce and supply chain to how we develop new products.
We believe operating with sustainability in mind helps us better serve our customers and strengthens our organization, driving us to effectively manage and mitigate risks; deepen our values-based culture; and prioritize collaboration, innovation, and efficiency.
Our approach centers on stakeholder engagement, goal setting, and accountability for our performance. We aim to meet or exceed expectations and requirements around transparency and disclosure, as well as industry-recognized frameworks, best practices, and standards.
Our 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 these goals by the end of 2025.
- NOT STARTED
- On Track
- Achieved
| Goal | Status | 2024 Progress |
|---|---|---|
| Goal Continue to expand our disclosure and alignment with industry-recognized frameworks and standards. |
Status | 2024 Progress Continued to maintain or improve our ratings and rankings with third parties, and joined RE100. |
| Goal | Status | 2024 Progress |
|---|---|---|
| Goal 83% of customers measured by emissions have science-based targets (SBTs). |
Status | 2024 Progress 9% of customers measured by emissions have SBTs. |
| Goal Reduce Scope 3 emissions from use of sold products 63.8% per USD value added by 2034 from a 2022 base year.2 |
Status | 2024 Progress New goal |
| Goal | Status | 2024 Progress |
|---|---|---|
| Achieve net zero emissions by 2050, including meeting the following interim targets: | ||
| Goal Achieve 100% renewable electricity by the end of 2030.
|
Status | 2024 Progress Sourced 55% of electricity from renewables. |
| Goal Reduce absolute Scope 1 and 2 (market-based) greenhouse gas (GHG) emissions 25% by the end of 2025 and 46.2% by 2030 from a 2019 baseline.3 By 2040, achieve net zero operations.
|
Status | 2024 Progress
|
| Goal Achieve 12 million kilowatt-hours (kWh) in total energy savings from a 2019 baseline.
|
Status | 2024 Progress
|
| Goal Achieve zero waste to landfill for hazardous waste. |
Status | 2024 Progress Diverted 99.95% of hazardous waste in 2024. |
| Goal Achieve 80 million gallons of water savings in water-stressed regions from a 2019 baseline. |
Status | 2024 Progress Achieved 80.6 million gallons of water savings from a 2019 baseline, one year ahead of schedule, including 14.7 million gallons in 2024. |
| Goal | Status | 2024 Progress |
|---|---|---|
| Goal Build on our high-performance culture with best-in-class employee engagement at the global benchmark as measured by our annual employee survey. |
Status | 2024 Progress 90% participation in our annual employee survey, with a 78 engagement score; +2 over 2023 and exceeding all benchmarks. |
| Goal Maintain an Occupational Safety and Health Administration (OSHA) recordable injury rate at or below 0.4 annually. |
Status | 2024 Progress Realized a recordable injury rate of 0.28. |
| Goal | Status | 2024 Progress |
|---|---|---|
| Goal Achieve more than 90% compliance with our social and environmental expectations across our top suppliers.5 |
Status | 2024 Progress Exceeded our goal with 99% of top suppliers responding to conflict minerals survey. |
| Goal Engage with at least 50% of our top suppliers on environmental sustainability opportunities. |
Status | 2024 Progress Engaged with 100% of top suppliers through surveys, energy assessments, and education programs. |
| Goal Increase engagement with suppliers on social and environmental topics through assessment, training, and capacity building. |
Status | 2024 Progress Continued to deepen supplier engagement with top suppliers through 19 webinars, as well as training tailored to our growth regions. |
| Goal 46.5% of suppliers by emissions have SBTs. |
Status | 2024 Progress 32.7% of suppliers measured by emissions have SBTs. |
| Goal | Status | 2024 Progress |
|---|---|---|
| Goal Determine key targets for larger-scale impact aligned to a new strategic focus. |
Status | 2024 Progress Having achieved this goal in 2023, Lam’s Powering Breakthroughs Together community impact framework continues to guide our giving and signature program initiatives. |
| Goal Implement measurement of outcomes for key program and large-scale grants. |
Status | 2024 Progress Identified gaps in measurement and reporting processes and assessing alternative approach for large-scale grants. |
| Goal Increase annual unique participation rate in all employee giving programs from 10% to 30%. |
Status | 2024 Progress Annual unique employee participation rate increased to 22%. |
| Goal Contribute 40,000 employee volunteer hours annually. |
Status | 2024 Progress Contributed 31,956 employee volunteer hours in 2024. |
We aspire to manage our impact across everything we do
Strategic pillars and material ESG topics
Six pillars reflect areas where we can make the most meaningful environmental, social, and economic impact. We identified these areas—known as material ESG topics6—by engaging key internal and external stakeholders in an in-depth ESG materiality assessment.
Products and
customers
Sustainable
operations
Our workplace
Responsible supply
chain
Our communities
Business and
governance
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 supplier surveys
- •Annual Supplier Day (with Excellence Awards)
- •Monthly supplier scorecard reviews
- •Regular Supplier Town Halls
- •Strategic business reviews
as needed
Among our most impactful tools for stakeholder engagement are our in-depth ESG materiality6 assessments, which we conduct every three to five years or more frequently if there’s a notable shift in our industry or business. During this process, we gather insights from internal and external stakeholders to guide and affirm Lam’s ESG approach. We conducted our latest assessment in 2022 using a double materiality methodology, in line with guidance from the Sustainable Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI).
Through surveys and interactive interviews, participants assessed topics based on their importance to stakeholders and potential impacts both to and from Lam. We also integrated results from an employee survey to further incorporate our employees’ perspectives. The results were reviewed by both executive management and the Board.
Based on the results, we identified the following topics as being among the most impactful and strategically important to Lam’s ESG program: climate strategy and emissions management, supplier engagement and assessment, employee fulfillment and retention, product stewardship, supplier environmental performance, and leadership accountability.
| Material ESG topic | Business importance | Impacts | Strategies to address |
|---|---|---|---|
| Material ESG topicClimate strategy and emissions management Product stewardship |
Business importanceThis topic is relevant throughout our value chain. We face potential operational impacts as climate change continues to worsen, and potential regulatory and/or reputational impacts related to our emissions. We also expect customers may have an increasing need for emissions reduction solutions that will enable them to meet their own climate targets. | ImpactsOur solutions enable technological advances that are contributing to a low-carbon economy. Our operations, supply chain, and products we make result in greenhouse gas emissions for Lam and our customers. We also face potential climate-related physical and transition risks that could have impacts on our business. | Strategies to addressShort- and long-term climate goals
Investment in energy efficiency and renewable electricity
Engagement with customers and suppliers to address Scope 3 emissions |
| Material ESG topicSupplier engagement and assessment
Supplier environmental performance |
Business importanceTo achieve our climate goals and address potential human rights risk in our supply chain, we must regularly engage and assess our suppliers. | ImpactsLam can work to influence our suppliers to increase corporate responsibility practices that improve their own operations, reduce the risk associated with our supply chain, and support our goals. | Strategies to addressSBTi supplier engagement goal
Regular supplier assessments utilizing Responsible Business Alliance tools
Webinars, forums, and other activities to inform and educate suppliers |
| Material ESG topicEmployee fulfillment and retention | Business importanceAttracting and retaining employees is of utmost importance for Lam to achieve our short- and long-term business goals in a highly competitive employment market. | ImpactsLam can positively impact the community via job creation. We also face potential risk in not recruiting and retaining talent in a highly competitive employment market. | Strategies to addressAnnual employee engagement surveys Competitive compensation and benefits Employee training and development programs |
| Material ESG topicLeadership accountability | Business importanceTo promote business and ensure alignment in our efforts, effective leadership, oversight, and accountability are key. | ImpactsEngaging Lam leadership allows us to integrate material ESG topics into business decision-making and ensure we are prioritizing these topics across the business and meeting our goals. | Strategies to addressThe Board of Directors has oversight of ESG Board committees have oversight of specific ESG topics Lam’s ESG Executive Steering Committee guides strategy and drives accountability Our executive compensation program is tied to certain aspects of Lam’s ESG goals |
Contributing to the United Nations Sustainable
Development Goals (UN SDGs)
We support the United Nations Sustainable Development Goals (SDGs). We use the SDGs as a framework to guide our initiatives and measure their effectiveness. We have identified the following SDGs as being most relevant to Lam’s material ESG 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 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, and the sustainability of our products and operations. Some factors that may affect these forward-looking statements include: trade regulations and tariffs, 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.
Additionally, while we leverage various frameworks and other standards in our disclosures, such standards are ultimately only used to inform our disclosures and we cannot guarantee (and no language of “alignment” or similar should be understood to mean) complete adherence to such standards or any particular stakeholders’ interpretation of same. Our disclosures based on standards may change due to revisions in framework requirements, availability or quality of information, changes in our business or applicable governmental policies, or other factors, which may be within or outside of our control. Similarly, some of the information in this Report is reliant on third-party information or methodologies. Any inaccuracies or changes in such information or methodologies, whether within or outside of our control, could cause results and performance to differ from what is reported. In addition, various aspects of this report are based on processes and procedures that we believe apply appropriate levels of support to address issues in scope and, while these statements may use words such as “ensure”, “prevent”, or similar language, such terms should not be considered to mean (as there can be no guarantee) that such efforts will be successful in all situations.
Separately, certain information included in this Report may be used for compliance with various legal obligations; however, this Report is necessarily broader than certain legal requirements, and any such use shall not be deemed to incorporate portions of this Report that are not responsive to such obligations or references to same. It is not intended, and we hereby disclaim, any legal relations, rights or obligations to any third-party in connection with these disclosures. Moreover, by providing this information, neither we nor any of our affiliates are conceding any specific item is required or applicable under any legal obligation, nor are we conceding any particular interpretation of such legal requirements. Moreover, in certain circumstances, information included in this Report may differ from information included in regulatory reporting due to differences in methodologies for the calculation of certain metrics or other factors, which may be within or outside of our control.
- For more information on our methodology, please see the About this Report page of our 2024 Global Impact report.
- This goal was added to our net zero roadmap at the end of 2024 and thus progress to that goal was not started within the 2024 calendar year.
- We have revised our 2030 Scope 1 and 2 emissions-reduction target due to ongoing due diligence revealing a need to adjust our baseline. The revised goal remains in line with SBTi expectations.
- A previously stated Workplace goal has been removed for 2024.
- Top suppliers are defined as the top 100 direct suppliers, which account for approximately 91% of direct spend and 90% of direct supplier emissions, with some variability year-over-year. Direct suppliers are defined as those who provide parts, assemblies, and services to produce parts used to manufacture and support Lam’s products. Indirect suppliers are all other goods and services used in Lam’s daily operations that are not parts, assemblies, or services directly tied to producing parts used to manufacture or support Lam’s products.
- 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, or other regulatory requirements. Particularly in the ESG context, materiality is subject to various definitions which differ from, and are often more expansive than, the definition under these securities or other laws. Similarly, attention to environmental, social, and other sustainability issues from various stakeholders and frameworks means our approach to the identification and discussion of various risks and impacts may not be limited to items that have been deemed material or otherwise relevant for disclosure under any particular regulatory regime. Materiality can also be difficult to ascertain in advance, particularly due to the uncertainties, assumptions, and long timelines associated with several such topics.