Appendix
Performance summary1
Data as of 12/31/2022.
| Performance Area | 2022 | YOY Change | 2021 | 2020 |
|---|---|---|---|---|
| Business and Governance | ||||
| Performance Area: Number of full-time employees (approximate) | 2022: 19,200 | YOY Change: 18% | 2021: 16,300 | 2020: 12,228 |
| Performance Area: Revenue | 2022: $17.2B | YOY Change: 17.8% | 2021: $14.60 | 2020: $10.0B |
| Performance Area: R&D spend (as percentage of operating expenses) | 2022: $1.6B (64%) | YOY Change: 7.4% | 2021: $1.5B (64%) | 2020: $1.3B (63%) |
| Products and Customers | ||||
| Performance Area: Total number of installed base chambers (approximate) | 2022: 84,000 | YOY Change: 12% | 2021: 75,000 | 2020: 66,000 |
| Workplace | ||||
| Gender Representation | ||||
| Performance Area: Percent of employee population identifying as female (global) | 2022: 20.0% | YOY Change: 2.6% | 2021: 19.5% | 2020: 18.6% |
| Performance Area: Percent of employee population identifying as female (U.S) | 2022: 22.3% | YOY Change: 1.4% | 2021: 22.0% | 2020: 21.3% |
| Performance Area: Percent of new hires identifying as female (global) | 2022: 23.0% | YOY Change: 5.5% | 2021: 21.8% | 2020: 23.9% |
| U.S. Ethnicity | ||||
| Performance Area: White | 2022: 49.3% | YOY Change: -2% | 2021: 50.5% | 2020: 50.5% |
| Performance Area: Asian | 2022: 30.7% | YOY Change: 2% | 2021: 30% | 2020: 30.9% |
| Performance Area: Hispanic or Latinx | 2022: 7.3% | YOY Change: 4% | 2021: 7.0% | 2020: 6.6% |
| Performance Area: Two or more races | 2022: 3.1% | YOY Change: 7% | 2021: 2.9% | 2020: 2.2% |
| Performance Area: Black or African American | 2022: 2.6% | YOY Change: 0% | 2021: 2.6% | 2020: 2.1% |
| Performance Area: Native Hawaiian or other Pacific Islander | 2022: 0.7% | YOY Change: 0% | 2021: 0.7% | 2020: 0.5% |
| Performance Area: American Indian or Native Alaskan | 2022: 0.5% | YOY Change: 25% | 2021: 0.4% | 2020: 0.3% |
| Performance Area: Not stated | 2022: 5.8% | YOY Change: -2% | 2021: 5.9% | 2020: 6.9% |
| Employee Engagement, Recruitment, and Retention | ||||
| Performance Area: Employee engagement score (Tech sector benchmark 74) | 2022: 78 | YOY Change: -3% | 2021: 80 | 2020: 80 |
| Performance Area: Total new hires (global) | 2022: 4,197 | YOY Change: -7% | 2021: 4,507 | 2020: 2,067 |
| Performance Area: Number of internal promotions | 2022: 2,577 | YOY Change: 33% | 2021: 1,936 | 2020: 1,626 |
| Performance Area: Total number of training courses | 2022: 3,667 | YOY Change: -19% | 2021: 4,548 | 2020: 4,700 |
| Performance Area: Education reimbursement for U.S. employees | 2022: $2.2M | YOY Change: 11% | 2021: $1.98M | 2020: $1.65M |
| Performance Area: Employee retention rate | 2022: 89.7% | YOY Change: -4% | 2021: 93% | 2020: 95% |
| Performance Area: Average service years | 2022: 6.2 | YOY Change: -5% | 2021: 6.5 | 2020: 7.7 |
| Safety | ||||
| Performance Area: Recordable injury rate | 2022: 0.35 | YOY Change: -13% | 2021: 0.40 | 2020: 0.26 |
| Performance Area: Risk Management by Walking Around (RMBWA) reviews | 2022: 264,000 | YOY Change: 28% | 2021: 206,000 | 2020: 172,050 |
| Responsible Supply Chain | ||||
| Performance Area: Total number of supplier families | 2022: 1,483 | YOY Change: 2% | 2021: 1,450 | 2020: 1,459 |
| Performance Area: Percent of spending on local suppliers (N. America) | 2022: 49% | YOY Change: -25% | 2021: 66% | 2020: 49% |
| Performance Area: Total number of diverse suppliers | 2022: 19 | YOY Change: -24% | 2021: 25 | 2020: 25 |
| Performance Area: Total spending on diverse suppliers | 2022: $123M | YOY Change: 9% | 2021: $113M | 2020: $76M |
| Sustainable Operations | ||||
| Energy and Climate | ||||
| Performance Area: Energy consumption (million kWh) | 2022: 494 | YOY Change: 23% | 2021: 402 | 2020: 352 |
| Performance Area: Percent renewables | 2022: 44% | YOY Change: 19% | 2021: 37% | 2020: 12% |
| Performance Area: GHG emissions Scopes 1 and 2 market-based (MTCO2e) | 2022: 496,299 | YOY Change: 44% | 2021: 344,528 | 2020: 308,546 |
| Performance Area: Scope 1 emissions (MTCO2e) | 2022: 432,998 | YOY Change: 50% | 2021: 288,007 | 2020: 232,662 |
| Performance Area: Scope 2 emissions location-based (MTCO2e) | 2022: 131,084 | YOY Change: 20% | 2021: 109,627 | 2020: 87,170 |
| Performance Area: Scope 2 emissions market-based (MTCO2e) | 2022: 63,300 | YOY Change: 12% | 2021: 56,521 | 2020: 75,884 |
| Performance Area: GHG emissions Scope 3 (MTCO2e) | 2022: 6.8M | YOY Change: 1% | 2021: 6.7M | 2020: N/A |
| Performance Area: Volatile organic compounds (metric tons) | 2022: 78 | YOY Change: 111% | 2021: 37 | 2020: 22 |
| Waste | ||||
| Performance Area: Hazardous waste recycling rate | 2022: 48% | YOY Change: 100% | 2021: 24% | 2020: 22.4% |
| Performance Area: Non-hazardous waste recycling rate | 2022: 77% | YOY Change: 8% | 2021: 71% | 2020: 70% |
| Water | ||||
| Performance Area: Water usage (million gallons) | 2022: 398 | YOY Change: 5% | 2021: 378 | 2020: 292 |
| Performance Area: Water usage in water-stressed regions (million gallons) | 2022: 173 | YOY Change: 19% | 2021: 144 | 2020: 114 |
| Performance Area: Ultra-pure water usage (million gallons) | 2022: 62 | YOY Change: -44% | 2021: 111 | 2020: 120 |
| Performance Area: Number of environmental fines | 2022: 3 | YOY Change: 0% | 2021: 3 | 2020: 2 |
| Community | ||||
| Performance Area: Total giving by the Lam Research Foundation | 2022: $6.6M | YOY Change: 6% | 2021: $6.2M | 2020: $7.8M |
| Performance Area: Employee volunteer hours | 2022: 21,133 | YOY Change: 65% | 2021: 12,781 | 2020: 11,993 |
| Performance Area: Employee matching gifts | 2022: $1.2M | YOY Change: 9% | 2021: $1.1M | 2020: $1.7M |
| Performance Area: Number of charity organizations supported | 2022: 2,153 | YOY Change: 39% | 2021: 1,552 | 2020: 1,640 |
- All figures are for calendar year, with the exception of revenue and R&D spend which are presented on a fiscal year basis. 2020 is for fiscal year ending June 28, 2020; 2021 is for fiscal year ending June 27, 2021; 2022 is for fiscal year ending June 26, 2022. K is defined as thousand, M is defined as million, and B is defined as billion. Minimal rounding has been applied to these data.
GRI index
Lam Research Corporation has reported the information cited in this GRI content index for the period ranging from June 27, 2021 to June 26, 2022 with reference to the GRI Standards.
GRI 1 Used GRI 1: Foundation 2021
| GRI Standard / Other Source | Disclosure | Location / Response |
|---|---|---|
| General Disclosures | ||
| GRI 2: General Disclosures 2021 | ||
| The Organization and Its Reporting | ||
| GRI Standard / Other Source: 2-1 | Disclosure: Organizational details | Location / Response: Lam Research Corporation Fremont, CA, USA |
| GRI Standard / Other Source: 2-2 | Disclosure: 102-2 Activities, brands, products, and services | Location / Response: Entities included in this report are identified in 2022 Form 10-K, Exhibit 21. Exceptions are noted throughout the report. |
| GRI Standard / Other Source: 2-3 | Disclosure: Reporting period, frequency and contact point | Location / Response: Annually Year end: June 26, 2022 [email protected] |
| GRI Standard / Other Source: 2-4 | Disclosure: Restatements of information | Location / Response: In 2022, we updated our baseline year (2019) emissions values for Scope 1, along with years 2020 and 2021. These changes are primarily due to the previously unknown source of Scope 1 emissions. In addition, we found that we had not accounted for the partial abatement of certain process gas emissions at our Fremont, California lab facility. In 2022, Lam changed our calculation approach for renewable energy to no longer include grid renewable energy. As a result, we have adjusted our percent renewables for 2020 and 2021. We also made corrections to our calculation method for volatile organic compounds, which resulted in Lam restating the values for 2020 and 2021. |
| GRI Standard / Other Source: 2-5 | Disclosure: External assurance | Location / Response: Our environmental data, including Scope 1 and 2 emissions, energy, waste, and water, are verified by an external third-party. |
| Activities and Workers | ||
| GRI Standard / Other Source: 2-6 | Disclosure: Activities, value chain and other business relationships | Location / Response: 2022 Form 10-K, Business, pp. 3-12 |
| GRI Standard / Other Source: 2-7 | Disclosure: Employees |
Location / Response:
|
| Governance | ||
| GRI Standard / Other Source: 2-9 | Disclosure: Governance structure and composition |
Location / Response:
|
| GRI Standard / Other Source: 2-10 | Disclosure: Nomination and selection of the highest governance body | Location / Response: 2022 Proxy Statement—Board Nomination Policies and Procedures, pp. 11-12 |
| GRI Standard / Other Source: 2-11 | Disclosure: Chair of the highest governance body | Location / Response: 2022 Proxy Statement—Voting Proposals, pp. 58-64 |
| GRI Standard / Other Source: 2-12 | Disclosure: Role of the highest governance body in overseeing the management of impacts | Location / Response: 2022 Proxy Statement—Environmental, Social, and Governance Matters, pp. 19-20 |
| GRI Standard / Other Source: 2-13 | Disclosure: Delegation of responsibility for managing impacts | Location / Response: 2022 Proxy Statement—Environmental, Social, and Governance Matters, pp. 19-20 |
| GRI Standard / Other Source: 2-14 | Disclosure: Role of the highest governance body in sustainability reporting |
Location / Response:
|
| GRI Standard / Other Source: 2-15 | Disclosure: Conflicts of interest |
Location / Response:
|
| GRI Standard / Other Source: 2-16 | Disclosure: Communication of critical concerns | Location / Response: 2022 Proxy Statement—Communications with Board Members, p. 14 |
| GRI Standard / Other Source: 2-17 | Disclosure: Collective knowledge of the highest governance body | Location / Response: 2022 Proxy Statement—Director Nominee Key Qualifications, Skills and Experiences Highlights, p. 3 |
| GRI Standard / Other Source: 2-18 | Disclosure: Evaluation of the performance of the highest governance body | Location / Response: 2022 Proxy Statement—Board Effectiveness Practices, p. 10 |
| GRI Standard / Other Source: 2-19 | Disclosure: Remuneration policies |
Location / Response:
|
| GRI Standard / Other Source: 2-20 | Disclosure: Process to determine remuneration | Location / Response: 2022 Proxy Statement—Executive Compensation Governance and Procedures, pp. 30-32 |
| GRI Standard / Other Source: 2-21 | Disclosure: Annual total compensation ratio | Location / Response: 2022 Proxy Statement—CEO Pay Ratio, p. 53 |
| Strategy, Policies and Practices | ||
| GRI Standard / Other Source: 2-22 | Disclosure: Statement on sustainable development strategy | Location / Response: CEO Letter |
| GRI Standard / Other Source: 2-23 | Disclosure: Policy commitments |
Location / Response:
|
| GRI Standard / Other Source: 2-24 | Disclosure: Embedding policy commitments |
Location / Response:
|
| GRI Standard / Other Source: 2-25 | Disclosure: Processes to remediate negative impacts |
Location / Response:
|
| GRI Standard / Other Source: 2-26 | Disclosure: Mechanisms for seeking advice and raising concerns |
Location / Response:
Our Reporting Concerns Policy provides guidance to employees on raising concerns about a variety of issues, including those that are financial. Our Ethics & Compliance (E&C) team investigates allegations involving alleged kickbacks, bribery, trade secret theft, insider trading, conflicts of interest, and corporate card and expense abuse, among other issues. They also share their investigations reporting data with employees, including data related to:
For further information, see the Business and governance—Building an ethical culture section of this Report. |
| GRI Standard / Other Source: 2-27 | Disclosure: Compliance with laws and regulations |
Location / Response:
|
| GRI Standard / Other Source: 2-28 | Disclosure: Membership associations | Location / Response: Semiconductor Climate Consortium, United Nations Global Compact, East Bay Foundation, National Association of Manufacturers, Responsible Business Alliance, SEMI, Semiconductor Industry Association, Silicon Valley Community Foundation, and Watermark, US-India Strategic Partnership, Inc., US-Korea Business Council, US-Taiwan Business Council, US-China Business Council, Silicon Valley Leadership Group, U.S.-India Business Council |
| Stakeholder Engagement | ||
| GRI Standard / Other Source: 2-29 | Disclosure: Approach to stakeholder engagement | Location / Response: 2022 ESG Report—Business and governance—Engaging our global stakeholders |
| GRI Standard / Other Source: 2-30 | Disclosure: Collective bargaining agreements | Location / Response: 2022 ESG Report—Business and governance—Upholding human rights |
| Material Topics | ||
| GRI 3: Material Topics 2021 | ||
| GRI Standard / Other Source: 3-1 | Disclosure: Process to determine material topics | Location / Response: 2022 ESG Report—Business and governance—Engaging our global stakeholders |
| GRI Standard / Other Source: 3-2 | Disclosure: List of material topics | Location / Response: 2022 ESG Report—Business and governance—Engaging our global stakeholders |
| GRI 200: Economic | ||
| GRI 201: Economic Performance | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 201-1 | Disclosure: Direct economic value generated and distributed | Location / Response: 2022 10-K, Consolidated Statements of Operations, p. 39 |
| GRI Standard / Other Source: 201-2 | Disclosure: Financial implications and other risks and opportunities due to climate change |
Location / Response:
|
| GRI Standard / Other Source: 201-3 | Disclosure: Defined benefit plan obligations and other retirement plans |
Location / Response:
|
| GRI Standard / Other Source: 201-4 | Disclosure: Financial assistance received from government | Location / Response: Lam was also granted sales tax incentive grants from the California Alternative Energy and Advanced Transportation and Financing Authority (CAEATFA) that allowed Lam to purchase certain Mfg/R&D spend tax free. |
| GRI 203: Indirect Economic Impacts | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 203-1 | Disclosure: Infrastructure investments and services supported |
Location / Response:
|
| GRI Standard / Other Source: 203-2 | Disclosure: Significant indirect economic impacts |
Location / Response:
|
| GRI 205: Anti-corruption | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
Lam's Global Standards of Business Conduct addresses a range of ethics and compliance issues, such as protecting confidential information; prohibiting bribery and corruption; and giving or receiving gifts, meals, travel, and entertainment. It also covers workplace conduct issues such as harassment and discrimination, as well as conflicts of interest created by relationships. We regularly review and update the Global Standards of Business Conduct to ensure that it remains relevant to our business. Additional policies and procedures provide further guidance on specific ethics and compliance areas, including:
For more information, see the Business and governance section of this Report, Global Standards of Business Conduct, Global Supplier Code of Conduct, and Code of Ethics. |
| GRI Standard / Other Source: 205-1 | Disclosure: Operations assessed for risks related to corruption | Location / Response: 2022 ESG Report—Business and governance |
| GRI Standard / Other Source: 205-2 | Disclosure: Communication and training about anti-corruption policies and procedures | Location / Response: Lam requires employees to complete annual training that reinforces their understanding of selected topics within the Global Standards of Business Conduct. |
| GRI 206: Anti-competitive Behavior | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
Lam's Global Standards of Business Conduct addresses a range of ethics and compliance issues, such as protecting confidential information; prohibiting bribery and corruption; and giving or receiving gifts, meals, travel, and entertainment. It also covers workplace conduct issues such as harassment and discrimination, as well as conflicts of interest created by relationships. We regularly review and update the Global Standards of Business Conduct to ensure that it remains relevant to our business. Additional policies and procedures provide further guidance on specific ethics and compliance areas, including:
For more information, see the Business and governance section of this Report, Global Standards of Business Conduct, Global Supplier Code of Conduct, and Code of Ethics. |
| GRI Standard / Other Source: 206-1 | Disclosure: Legal actions for anti-competitive behavior, anti-trust, and monopoly practices | Location / Response: Lam was not subject to any such legal actions during the reporting period. |
| GRI 207: Tax | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 207-1 | Disclosure: Approach to tax | Location / Response: 2022 ESG Report—Business and Governance—Engaging policymakers and complying with global taxation—Ensuring compliance with global taxation |
| GRI Standard / Other Source: 207-2 | Disclosure: Tax governance, control, and risk management | Location / Response: 2022 ESG Report—Business and Governance—Engaging policymakers and complying with global taxation—Ensuring compliance with global taxation |
| GRI Standard / Other Source: 207-3 | Disclosure: Stakeholder engagement and management of concerns related to tax | Location / Response: 2022 ESG Report—Business and Governance—Engaging policymakers and complying with global taxation—Ensuring compliance with global taxation |
| GRI Standard / Other Source: 207-4 | Disclosure: Country-by-country reporting | Location / Response: Lam Research does not provide country-by-country reporting on taxes. See 10-K references for overall reporting on taxes. |
| GRI 300: Environmental | ||
| GRI 302: Energy | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 302-1 | Disclosure: Energy consumption within the organization |
Location / Response:
|
| GRI Standard / Other Source: 302-2 | Disclosure: Energy consumption outside of the organization | Location / Response: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap |
| GRI Standard / Other Source: 302-3 | Disclosure: Energy intensity | Location / Response: 2022 ESG Report—Sustainable operations—Optimizing energy |
| GRI Standard / Other Source: 302-4 | Disclosure: Reduction of energy consumption |
Location / Response:
|
| GRI Standard / Other Source: 302-5 | Disclosure: Reductions in energy requirements of products and services | Location / Response: 2022 ESG Report—Product innovation—Creating our most efficient and sustainable generation of products |
| GRI 303: Water and Effluents | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 303-1 | Disclosure: Interactions with water as a shared resource | Location / Response: 2022 ESG Report—Sustainable operations—Accelerating water savings |
| GRI Standard / Other Source: 303-2 | Disclosure: Management of water discharge-related impacts |
Location / Response:
|
| GRI Standard / Other Source: 303-3 | Disclosure: Water withdrawal |
Location / Response:
|
| GRI Standard / Other Source: 303-4 | Disclosure: Water discharge |
Location / Response:
|
| GRI Standard / Other Source: 303-5 | Disclosure: Water consumption |
Location / Response:
|
| GRI 305: Emissions | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 305-1 | Disclosure: Direct (Scope 1) GHG emissions | Location / Response: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap |
| GRI Standard / Other Source: 305-2 | Disclosure: Energy indirect (Scope 2) GHG emissions | Location / Response: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap |
| GRI Standard / Other Source: 305-3 | Disclosure: Other indirect (Scope 3) GHG emissions | Location / Response: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap |
| GRI Standard / Other Source: 305-4 | Disclosure: GHG emissions intensity | Location / Response: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap |
| GRI Standard / Other Source: 305-5 | Disclosure: Reduction of GHG emissions | Location / Response: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap |
| GRI Standard / Other Source: 305-6 | Disclosure: Emissions of ozone-depleting substances (ODS) | Location / Response: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap |
| GRI Standard / Other Source: 305-7 | Disclosure: Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions | Location / Response: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap |
| GRI 306: Waste | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 306-1 | Disclosure: Waste generation and significant waste-related impacts | Location / Response: 2022 ESG Report—Sustainable operations—Maximizing value by minimizing waste |
| GRI Standard / Other Source: 306-2 | Disclosure: Management of significant waste-related impacts | Location / Response: 2022 ESG Report—Sustainable operations—Maximizing value by minimizing waste |
| GRI Standard / Other Source: 306-3 | Disclosure: Waste generated | Location / Response: 2022 ESG Report—Sustainable operations—Maximizing value by minimizing waste |
| GRI Standard / Other Source: 306-4 | Disclosure: Waste diverted from disposal | Location / Response: 2022 ESG Report—Sustainable operations—Maximizing value by minimizing waste |
| GRI Standard / Other Source: 306-5 | Disclosure: Waste directed to disposal | Location / Response: 2022 ESG Report—Sustainable operations—Maximizing value by minimizing waste |
| GRI 308: Supplier Environmental Assessment | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic | Location / Response: 2022 ESG Report—Responsible supply chain |
| GRI Standard / Other Source: 308-1 | Disclosure: New suppliers that were screened using environmental criteria | Location / Response: We expect our suppliers to make every effort to reduce impact on the environment by meeting standards established by applicable environmental legislation. |
| GRI Standard / Other Source: 308-2 | Disclosure: Negative environmental impacts in the supply chain and actions taken |
Location / Response:
|
| GRI 400: Social | ||
| GRI 401: Employment | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 401-1 | Disclosure: New employee hires and employee turnover | Location / Response: 2022 ESG Report—Appendix—Performance summary |
| GRI Standard / Other Source: 401-2 | Disclosure: Benefits provided to full-time employees that are not provided to temporary or part-time employees | Location / Response: 2022 ESG Report—Our workplace—Engaging and developing our people |
| GRI 403: Occupational Health and Safety | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 403-1 | Disclosure: Occupational health and safety management system | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI Standard / Other Source: 403-2 | Disclosure: Hazard identification, risk assessment, and incident investigation | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI Standard / Other Source: 403-3 | Disclosure: Occupational health services | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI Standard / Other Source: 403-4 | Disclosure: Worker participation, consultation, and communication on occupational health and safety | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI Standard / Other Source: 403-5 | Disclosure: Worker training on occupational health and safety | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI Standard / Other Source: 403-6 | Disclosure: Promotion of worker health | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI Standard / Other Source: 403-7 | Disclosure: Prevention and mitigation of occupational health and safety impacts directly linked by business relationships | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI Standard / Other Source: 403-8 | Disclosure: Workers covered by an occupational health and safety management system | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI Standard / Other Source: 403-9 | Disclosure: Work-related injuries | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI Standard / Other Source: 403-10 | Disclosure: Work-related ill health | Location / Response: 2022 ESG Report—Our workplace—Keeping our employees safe |
| GRI 404: Training and Education | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 404-2 | Disclosure: Programs for upgrading employee skills and transition assistance programs | Location / Response: 2022 ESG Report—Our workplace—Engaging and developing our people |
| GRI Standard / Other Source: 404-3 | Disclosure: Percentage of employees receiving regular performance and career development reviews | Location / Response: 70% of our employees received an annual performance review during this reporting period. To learn more about our employee training and development, see the Our workplace—Engaging and developing our people section of this Report. |
| GRI 405: Diversity and Equal Opportunity | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 405-1 | Disclosure: Diversity of governance bodies and employees | Location / Response: 2022 ESG Report—Our workplace—Shaping an inclusive culture |
| GRI 407: Freedom of Association and Collective Bargaining | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 407-1 | Disclosure: Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk: Measures taken by the organization in the reporting period intended to support rights to exercise freedom of association and collective bargaining. | Location / Response: Lam is not aware of any operations or major direct suppliers in which right to freedom of association and collective bargaining (to the extent permitted under local laws) was at risk in 2022. |
| GRI 408: Child Labor | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 408-1 | Disclosure: Operations and suppliers at significant risk for incidents of child labor | Location / Response: In 2022, we leveraged Responsible Business Alliance tools to assess risks in the regions where our suppliers operate. Through the process, we identified three high-risk countries for child labor and migrant labor. Lam respects human rights and is committed to adhering to humane business practices wherever the company does business, including complying with laws such as the U.K. Modern Slavery Act of 2015 and the California Transparency in Supply Chains Act of 2010. |
| GRI 409: Forced or Compulsory Labor | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic | Location / Response: 2022 ESG Report—Responsible supply chain—Our strategy for mutual success Global Supplier Code of Conduct |
| GRI Standard / Other Source: 409-1 | Disclosure: Operations and suppliers at significant risk for incidents of forced or compulsory labor | Location / Response: In 2022, we leveraged Responsible Business Alliance tools to assess risks in the regions where our suppliers operate. Through the process, we identified three high-risk countries for child labor and migrant labor. Lam respects human rights and is committed to adhering to humane business practices wherever the company does business, including complying with laws such as the U.K. Modern Slavery Act of 2015 and the California Transparency in Supply Chains Act of 2010. |
| GRI 413: Local Communities | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic | Location / Response: 2022 ESG Report—Our communities |
| GRI Standard / Other Source: 413-1 | Disclosure: Operations with local community engagement, impact assessments, and development programs | Location / Response: 2022 ESG Report—Our communities—Transformative learning, Resilient communities |
| GRI Standard / Other Source: 413-2 | Disclosure: Operations with significant actual and potential negative impacts on local communities | Location / Response: 2022 ESG Report—Our communities—Transformative learning, Resilient communities |
| GRI 414: Supplier Social Assessment | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 414-1 | Disclosure: New suppliers that were screened using social criteria | Location / Response: Lam values a diverse supply chain and is committed to selecting diverse suppliers that offer goods and services that meet our company's standards, supplier selection criteria, and customer requirements. Promoting a diverse supplier base is a priority for Lam, and we support a number of industry and customer initiatives around supplier diversity. Diversity is also included in our supplier scorecard, and we track and report spending with diverse direct material suppliers on a periodic basis. We are using this data to facilitate a cross-functional approach to supplier diversity. We are a member of the SEMI (formerly Semiconductor Equipment and Materials International) Manufacturing Ownership Diversity Task Force that promotes and shares best practices for manufacturing ownership diversity (more commonly known as supplier diversity.). |
| GRI Standard / Other Source: 414-2 | Disclosure: Negative social impacts in the supply chain and actions taken | Location / Response: 2022 ESG Report—Responsible supply chain—Our strategy for mutual success, Upholding human rights |
| GRI 415: Public Policy | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic | Location / Response: 2022 ESG Report—Business and governance—Engaging policymakers |
| GRI Standard / Other Source: 415-1 | Disclosure: Political contributions |
Location / Response:
|
| GRI 416: Customer Health and Safety | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic |
Location / Response:
|
| GRI Standard / Other Source: 416-1 | Disclosure: Assessment of the health and safety impacts of product and service categories | Location / Response: 2022 ESG Report—Product innovation—Delivering safe, high-quality products, Developing sustainable solutions |
| GRI Standard / Other Source: 416-2 | Disclosure: Incidents of non-compliance concerning the health and safety impacts of products and services | Location / Response: In 2022, there were zero incidents of non-compliance concerning the health and safety impacts of products and service. |
| GRI 418: Customer Privacy | ||
| GRI Standard / Other Source: 3-3 | Disclosure: Management of material topic | Location / Response: 2022 ESG Report—Business and governance—Protecting data and intellectual property |
| GRI Standard / Other Source: 418-1 | Disclosure: Substantiated complaints concerning breaches of customer privacy and losses of customer data | Location / Response: In 2022, we did not experience any losses or breaches of customer data that resulted in a material adverse effect. For more information, see the Business and governance—Protecting data and intellectual property section of this Report. |
SASB index
Lam Research is reporting to the SASB Standards to bring industry-specific rigor to our sustainability disclosure. We are reporting to the Semiconductors Standard which most closely aligns with the business.
| Topic | Accounting Metric | Code | Category | Response / Reference |
|---|---|---|---|---|
| Topic: GHG Emissions |
Accounting Metric:
|
Code: TC-SC-110a.1 | Category: Quantitative |
Response / Reference:
|
| Accounting Metric: Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets. | Code: TC-SC-110a.2 | Category: Discussion and Analysis | Response / Reference: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap | |
| Topic: Energy Management |
Accounting Metric:
|
Code: TC-SC-130a.1 | Category: Quantitative |
Response / Reference:
|
| Topic: Water Management |
Accounting Metric:
|
Code: TC-SC-140a.1 | Category: Quantitative |
Response / Reference:
|
| Topic: Waste Management | Accounting Metric: Amount of hazardous waste from manufacturing, Percentage recycled | Code: TC-SC-150a.1 | Category: Quantitative |
Response / Reference:
|
| Topic: Employee Health and Safety | Accounting Metric: Description of efforts to assess, monitor, and reduce exposure of employees to human health hazards. | Code: TC-SC-320a.1 | Category: Discussion and Analysis | Response / Reference: 2022 ESG Report—Our workplace—Keeping our employees safe |
| Accounting Metric: Total amount of monetary losses as a result of legal proceedings associated with employee health and safety violations | Code: TC-SC-320a.2 | Category: Quantitative | Response / Reference: $0 | |
| Topic: Recruiting and Managing a Global and Skilled Workforce |
Accounting Metric:
Percentage of employees that are:
|
Code: TC-SC-330a.1 | Category: Quantitative | Response / Reference: Lam Research does not believe this is a material metric to our business due to our global footprint. A breakdown of employees by region and other material human capital metrics are available in the Introduction and Our workplace—Shaping an inclusive culture sections of this Report. |
| Accounting Metric: Percentage of products by revenue that contain IEC 62474 declarable substances | Code: TC-SC-410a.1 | Category: Percentage (%) | Response / Reference: Lam Research discloses information on our strategy and product value chains. We do not believe that percentage of revenue is a material metric to disclose. | |
| Topic: Materials Sourcing | Accounting Metric: Description of the management of risks associated with the use of critical materials | Code: TC-SC-440a.1 | Category: n/a |
Response / Reference:
|
| Topic: Intellectual Property Protection and Competitive Behavior | Accounting Metric: Total amount of monetary losses as a result of legal proceedings associated with anti- competitive behavior regulations | Code: TC-SC-520a.1 | Category: Reporting currency | Response / Reference: $0 |
| Activity Metrics | ||||
| Topic: Total Production | Code: TC-SC-000.A | Category: Quantitative | Response / Reference: Approximately 9,000 chambers | |
| Topic: Percentage of Production from Owned Facilities | Code: TC-SC-000.B | Category: Quantitative | Response / Reference: All process modules are assembled, tested, and inspected for quality at Lam facilities. | |
TCFD index
| Disclosure Focus Area | Recommended Disclosure | 2022 Response | 2022 Reference |
|---|---|---|---|
| Governance | |||
| Disclosure Focus Area: Disclose the organization's governance around climate-related risks and opportunities. | Recommended Disclosure: a) Describe the board's oversight of climate-related risks and opportunities. | 2022 Response: Our Board is actively engaged in ESG oversight. The Nominating and Governance Committee (NGC) has the primary responsibility for our ESG priorities, including reviewing our 2025, 2030, and 2050 climate and energy goals and our 2025 waste and water goals. In 2022, management provided updates to the Board or its committees at least quarterly and engaged them to discuss ESG strategy, gain alignment on goals, and report on progress. The full Board receives the annual ESG Report before it is published, and the NGC reviews and provides feedback. | 2022 Reference: CDP Climate Change 2022 C1.1a, C1.1b |
| Recommended Disclosure: b) Describe management's role in assessing and managing climate-related risks and opportunities. |
2022 Response:
We formed a new Executive Steering Committee in 2020 to guide our ESG strategy, approve and support initiatives, and help keep us accountable. The CEO and members of the CEO staff participate on this committee which oversees the work driven by our cross-functional ESG Leadership Team. In 2021, we formed a new net zero leadership team that is responsible for working with business units to integrate climate considerations into decision-making processes, driving progress on our net zero strategy and tracking greenhouse gas (GHG) performance on our climate goals. Each of our active working groups has an accountable executive responsible for the activity and progress toward our net zero goal. |
2022 Reference:
|
|
| Strategy | |||
| Disclosure Focus Area: Topic: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy and financial planning. | Recommended Disclosure: a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. |
2022 Response:
Through a Climate Risk Analysis conducted in conjunction with a third-party, Lam Research has identified a range of potential physical, market/technology, and policy/legal risks and opportunities. Risks:
Opportunities:
Lam is factoring these potential risks and opportunities into the development of less energy-intensive products, capital funding for climate-related operations projects, including energy conservation, and through engaging with suppliers on environmental sustainability opportunities. The physical risks are incorporated into the business continuity planning activities across the company and vary based on site-specific risk profiles. For more information on Lam's progress to mitigate climate risk, see the Product innovation, Sustainable operations, and Supply chain sections of this Report. |
2022 Reference:
|
| Recommended Disclosure: b) Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning. |
2022 Reference:
|
||
| Recommended Disclosure: c) Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2 °C or lower scenario. |
2022 Response:
Lam has begun to undertake a qualitative scenario analysis with plans to add quantitative in the next two years. To bolster Lam's resilience against the various climate-related scenarios, the company is:
|
2022 Reference:
|
|
| Risk Management | |||
| Disclosure Focus Area: Topic: Disclose how the organization identifies, assesses and manages climate-related risks. | Recommended Disclosure: a) Describe the organization's processes for identifying and assessing climate-related risks. |
2022 Response:
Lam conducted a qualitative climate risk analysis that involved engaging internal stakeholders, conducting research, and applying our internal risk rating system to assess the likelihood and impact of those potential climate risks. Lam has an established enterprise risk management system, which we aim to utilize to address any identified material climate risks in the future. In addition, risk owners for some material climate risks are identified and expected to report the risks and any associated mitigation actions on a regular basis. |
2022 Reference:
|
| Recommended Disclosure: b) Describe the organization's processes for managing climate- related risks. |
2022 Response:
We've utilized a third-party platform to assess the physical climate risks associated with our key manufacturing and lab facilities, along with some of our top supplier locations. The assessment provides a scorecard with potential exposure to hazards affected by climate change, including: heat stress, floods, sea level rise, wildfire, water stress, hurricanes, typhoons, and earthquakes. Results of these assessments have been shared with appropriate leadership within the business and are being incorporated into our regular business continuity planning processes. Additionally, we also utilize this tool when assessing the potential for siting of new facilities globally. We also have a robust environmental, health, and safety (EH&S) risk inventory system and process for evaluating our risks in accordance with our ISO 14001 certification. More details can be found in our 2022 CDP Climate Change disclosure. |
2022 Reference: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap | |
| Recommended Disclosure: c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management. |
2022 Response:
As part of our net zero governance, we hold regular meetings with our working group leads and accountable executives. We ask these leaders to identify potential risks and escalate those accordingly. We adjust our strategy as risks are identified and put mitigation plans in place. For key transition risks, such as changing customer expectations and competitors' developing low-impact products, we work closely with our global customer operations team to understand the customer's environmental sustainability expectations and incorporate them into our product sustainability initiatives. We collaborate with our customers to identify the most impactful and cost effective opportunities to reduce emissions and energy use of our tools. Finally, we stay abreast of what our competitors are offering in this space. For regulatory risks, we monitor the various emerging regulations that have an impact on environmental practices and reporting through our government affairs team and industry associations. As a result, we align our net zero strategy to reflect any changing requirements. Reputational risk transparency and reporting is a key pillar of our net zero strategy. We communicate regularly with our external stakeholders to share our climate strategies and goals, report annually through our ESG report, and disclose to a variety of third-party rating entities on our progress, including CDP, DJSI, ISS, and MSCI. |
2022 Reference: 2022 ESG Report—Sustainable operations—Advancing our net zero roadmap | |
| Metrics and Targets | |||
| Disclosure Focus Area: Topic: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities. | Recommended Disclosure: a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. | 2022 Response: Lam Research monitors several metrics to measure progress toward achieving our 2025, 2030, 2040, and 2050 net zero goals, including emissions generated and energy consumption metrics. |
2022 Reference:
|
| Recommended Disclosure: b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. |
2022 Response:
Please refer to our reporting on Scope 1, 2, and 3 emissions on page 30 of the Sustainable operations section of this Report. See Strategy section of the TCFD index for emissions-related risks. |
2022 Reference:
|
|
| Recommended Disclosure: c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. |
2022 Response:
Targets:
For more information see the Introduction—Building momentum to achieve our ESG goals section of this Report for performance against targets. |
2022 Reference:
|
|
UN SDGs index
| Goal | Revelant Targets | How we are contributing |
|---|---|---|
|
Revelant Targets: 3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination |
How we are contributing:
|
|
Revelant Targets:
4.3 By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university 4.4 By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship |
How we are contributing:
|
|
Revelant Targets:
8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value-added and labor-intensive sectors 8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value |
How we are contributing:
|
|
Revelant Targets:
10.2 By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status 10.4 Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality |
How we are contributing:
|
|
Revelant Targets: 13.2 Integrate climate change measures into national policies, strategies and planning |
How we are contributing:
|
About this report
Lam Research Corporation published this report to provide an overview of our company's products, services, and operations related to ESG performance. This report covers calendar year 2022, with some exceptions noted, including financial data that is Lam's fiscal year (June 28, 2021 – June 26, 2022). The report encompasses our wholly owned subsidiaries across the globe, with some data limited to particular geographies, which we note throughout the report.
We self-declare that this report is completed In Reference to the Global Reporting Initiative (GRI) Universal Standards. A GRI index at the end of this report shows our alignment with GRI reporting elements and our priority ESG topics. We intend to continue to report annually.
We also report in alignment with the Sustainability Accounting Standards Board (SASB) Standard for the Technology and Communications Sector: Semiconductor Industry. This alignment is detailed in the SASB index.
We have noted any significant changes in scope and boundary throughout the report that may vary from our 2021 report, published in 2022. External assurance is limited to financial data from the consolidated financial statements in our 2022 Annual Report on SEC Form 10-K and environmental and safety data as outlined in the third-party assurance letter included in this report. This ESG report has been reviewed by the Nominating and Governance Committee of our Board and has been reviewed and approved by our president and CEO.
For more information about our corporate governance, please reference our Proxy Statement.
Assurance letter
Additional information
Relevant links
Appendices
Visit our Report Appendix for our Performance Summary, and our GRI, SASB, TCFD and UNSDG indexes.
Contact information
If you have questions regarding this report or Lam's ESG activities, please contact: [email protected].
Cautionary statement
With the exception of historical facts, the statements contained in this ESG Report ("Report") are forward-looking statements. Forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Certain, but not all, of the forward-looking statements in this Report are specifically identified as forward-looking by the use of words and phrases such as "aim," "anticipate," "aspire," "believe," "build," "commitment," "continue," "could," "expand," "expect," "future," "goal," "increase," "intend," "maintain," "may," "objectives," "opportunities," "path," "plan," "remain," "should," "strategy," "strive," "target," "vision," "will," and "would." However, our identification of certain statements as forward-looking does not mean that other statements not specifically identified are not forward-looking. Forward-looking statements include, but are not limited to, statements that relate to: economic, market, industry and industry segment expectations; the role of our technology and innovations in the semiconductor industry and the world; our incorporation of ESG principles into our activities; our environmental impact; our engagement with our suppliers in their environmental and social efforts; our contributions to climate action; our ESG goals, including our goals related to achieving net zero emissions; our standards for responsible and ethical conduct; our aspirations for transparency and disclosure; the role of ESG considerations in our product development; our efforts to build an inclusive and diverse workplace; our efforts to develop a responsible and ethical supply chain; our ethics and compliance initiatives; our commitment to ensuring human rights across our operations and supply chains and plans for our human rights program; our compliance with legal, regulatory, and internal control requirements with respect to taxation; our product innovation; our investments in R&D; the performance, productivity, quality, safety, efficiency, or sustainability of our products; the impact of our investment in opening new R&D centers; the technology areas that are strategically important to us; reductions in the emissions output of our products; the ability of our products to enable faster learning cycle; our use of environmental principles in the product design process; energy or water savings, or emissions reductions, that might be achieved by customers using our products; materials savings that might be achieved through our re-cleaning, repair, refurbishment or re-coating services; our commitment to diversity and inclusion; our commitment to acting responsibly and improving our sustainability performance over time; our initiatives to reduce our energy and water consumption and to reduce waste; our investments in transitioning to renewable energy, emissions controls and energy efficiency technologies; our engagement with customers and suppliers to set SBTs; our commitment to climate action; our management of water use and treatment; our management of hazardous and non-hazardous waste and our emissions; our ability to safely manage chemicals and our adoption of green chemistry practices; workplace flexibility; the enhancement of our benefit programs; our goals with respect to increasing the proportion of underrepresented employees and women in our workforce; our ability to ensure the safety of our employees; our ability to manage risks in our supply chain, including with respect to human rights; and the impacts of our social impact platform. Such statements are based on current expectations and are subject to risks, uncertainties, and changes in condition, significance, value and effect. 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 continue 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 their 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 discussed under the headings "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" within Item 1A and at the beginning of Part I, respectively, of our fiscal year 2022 Annual Report on Form 10-K; and other documents we file from time to time with the Securities and Exchange Commission, such as our quarterly reports on Form 10-Q and current reports on Form 8-K. Such risks, uncertainties and changes in condition, significance, value and effect could cause our actual results to differ materially from those expressed in this Report and in ways that are not readily foreseeable. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report and are based on information currently and reasonably known to us. We do not undertake any obligation to update any forward-looking statements, or to release the results of any revisions to these forward-looking statements, to reflect the impact of anticipated or unanticipated events or circumstances that occur after the date of this Report.
