With our competitors and customers alike, Lam recognizes the need to aspire to a net zero future.
We strive to iterate and perfect the most intricate details of our technology and processes in a way that uses fewer resources and releases fewer greenhouse gas (GHG) emissions.
Like other companies and industries, Lam may face operational, regulatory, and reputational risks associated with our environmental impact. We strive to manage these risks and look for ways to reduce our impact so we can continue to be an engine of progress.
Our path to net zero
Establish the vision. Do the work. That’s how we’re bringing our net zero ambition into sight. Our approach to progress includes:
Goals
Net zero is a climate action goal to balance the amount of greenhouse gases (GHGs) being released into the atmosphere with the amount of GHGs being removed. Lam has joined organizations worldwide that are setting net zero goals so that, collectively, we seek to limit global warming to 1.5 degrees Celsius.
Announced Science Based Target initiative (SBTi) intention and net zero pathway
Achieved SBTi approval for three near-term emissions reduction targets*
Reduce absolute Scope 1 and 2 (market-based) GHG emissions by 25% from a 2019 baseline
Achieve 12M kWh in total energy savings from a 2019 baseline
46.5% of suppliers and 83% of customers measured by emissions have science-based targets (SBTs)*
Reduce absolute Scope 1 and 2 (market-based) GHG emissions by 46.2% from a 2019 baseline*
Achieve 100% renewable electricity*
95% of top direct suppliers measured by spend have SBTs
Reduce Scope 3 emissions from use of sold products 63.8% per dollar value added by 2034 from a 2022 baseline
Achieve net zero operations
(Scope 1 and 2)
Achieve net
zero emissions
* Short-term GHG emission reduction targets approved by the SBTi. We have revised our 2030 Scope 1 and 2 emissions-reduction target, due to ongoing due diligence revealing a need to adjust our 2019 baseline. The revised goal remains in line with SBTi expectations.
Our goals aim to cover various greenhouse gas emissions sources across our business.
| UPSTREAM ACTIVITIES | Lam facilities and operations | DOWNSTREAM ACTIVITIES | |||||
|---|---|---|---|---|---|---|---|
| UPSTREAM ACTIVITIES |
Scope 3 indirectKey contributors:
Collaborating for progress:Engaging suppliers to support them in setting SBTs and reducing their climate impacts |
Lam facilities and operations |
Scope 2 market-based indirectKey contributor:
Collaborating for progress:
|
Scope 1 directKey contributors:
Collaborating for progress:
|
DOWNSTREAM ACTIVITIES |
Scope 3 indirectKey contributors:
Collaborating for progress:Engaging customers and identifying opportunities to reduce energy and emissions associated with the use of our products |
|
Building the foundation
While our net zero goals are forward thinking, progress starts now. With our long-term roadmap in place, we’re building the foundation needed to achieve our goals. That means ramping up our resources, building teams and detailed plans, and focusing on three key areas of our business. Here’s a look at the actions we’re taking across our organization and supply chain.
Facilities
As we work to decarbonize our operations, we’re focused on enhancing energy efficiency, reducing water usage, and minimizing waste. We’re also investing in renewable electricity solutions, with solar arrays installed at several sites.
Suppliers
We strive to collaborate with suppliers to reduce our supply chain-based emissions through ongoing engagement and data collection. Lam’s Supply Chain ESG team spearheads these efforts and has launched a supplier engagement platform to help track suppliers’ climate-related goals and performance.
Customers and products
We are establishing baseline data for our products’ energy consumption and GHG emissions and engaging with customers to align on sustainability metrics and targets. This work informs our investments in R&D as we develop solutions that support our company and customers’ emissions-reduction goals.
Net zero starts with clear ownership
Achieving net zero emissions is a critically important initiative. It requires strong governance to deliver effective outcomes. With this in mind, oversight goes all the way up to our Board of Directors. We also have a Net Zero Leadership team and various working groups to support and monitor our ongoing progress.
To inspire broader action, we seek to engage closely with Lam’s customers and suppliers and are active in industry organizations. We strive to lead by example, including by becoming the first U.S.-based semiconductor equipment manufacturer to receive SBTi approval for its near-term GHG emissions reduction goals. Lam is also a founding member of the Semiconductor Climate Consortium, the first global, ecosystem-wide collaborative of semiconductor companies dedicated to reducing GHG emissions. Through collaboration, transparency, and ambitious goal setting (in accordance with the best available science), the consortium aims to advance the semiconductor industry’s response to climate change—one of the most pressing challenges of our time.
Addressing the risks of climate change to unlock new opportunities
We strive to take a proactive approach to risk management and our approach to climate change is no different. By identifying the risks that climate change poses, we can take meaningful steps to make our company more resilient. We worked with a third party to complete an in-depth climate change risk analysis. Through the assessment, we also identified opportunities to unlock benefits for our stakeholders and business. The results of the analysis include:
Risks
- Changing customer expectations
- Competitors developing lower-impact products
- Operational disruptions from flooding, natural hazards, rising temperatures, and/or water stress
- Natural hazards leading to supply chain disruptions and/or preventing access to the operational workplace
- Regulation of Lam’s direct operations, customer operations, and/or raw materials (e.g., carbon pricing)
- Reputational impacts from poor performance on external climate-related engagements
- Water stress impacting major customer operations
Opportunities
- Expansion of end-use markets
- Improving resilience of business operations through asset hardening
- Operational footprint reduction
- Reduced resource consumption of sold products
As we learn more about the likelihood and potential effects of these risks, we seek to continue to share our management and mitigation efforts with stakeholders. To ensure best practices in making and reporting progress, we strive to align our efforts with leading ESG disclosure frameworks including the Sustainability Accounting Standards Board (SASB), the Global Reporting Index (GRI), and the Task Force on Climate-related Financial Disclosure (TCFD). Several of our practices align with the TCFD categories listed below:
| TCFD Category | Aligned Practices at LAM |
|---|---|
| TCFD Category: Metrics and targets | Aligned Practices at LAM: 2025 and 2030 GHG reduction goals aligned with Science Based Targets Initiative (SBTi) methodology
Scope 3 emissions inventory to understand impacts in the value chain 2050 goal to achieve net zero across all emissions scopes, with interim goals for 2030 and 2040 |
| TCFD Category: Risk management | Aligned Practices at LAM: Multiple leading enterprise risk management practices
Strong governance to manage and escalate risk to appropriate levels |
| TCFD Category: Strategy | Aligned Practices at LAM: Leadership involvement and oversight on ESG strategy |
| TCFD Category: Governance | Aligned Practices at LAM: Board-level ESG oversight
Regular ESG reports to the Board and the Nominating and Governance Committee Net zero leadership team and cross-functional working groups Annual net zero objectives integrated into corporate accountability systems and review |
| TCFD Category: Reporting | Aligned Practices at LAM: Consistent climate-related metrics reported to CDP and in our annual Global Impact Report |
Each year Lam reports environmental performance to CDP. In 2024, we received a B score from CDP on its Climate Change and Water Security surveys.
Investor Relations
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry.
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.