For example:
- Our Villach, Austria plant continues to use 100% renewable energy through a combination of onsite solar and purchased energy. We expect to complete an expansion of the site’s onsite solar in 2022.
- Our newest and largest manufacturing site in Penang, Malaysia will install onsite solar that is expected to generate over 4 million kWh of energy per year.
- We purchase renewable energy certificates (RECs) that help us to achieve 100% renewable energy at our Ohio, Malaysia and China sites and 90% renewable at our India site.
Combining the energy we generate, RECs we purchase and the renewable energy from the local grids where we operate, 54% of our domestic and global electricity consumption from our labs and manufacturing sites was renewable in 2021.
Scope 3: Driving down emissions together
Most of our emissions occur from within our value chain, with our supply chain and use of our products being the highest contributors to our Scope 3 emissions. Over the long term, we plan to address these emissions by holding suppliers accountable for setting and achieving emissions targets, improving logistics efficiency, and increasing the energy efficiency of our products. For Scope 3 categories where emissions reduction isn’t practicable, we plan to purchase emissions offsets to reach our net zero 2050 goal.
We conducted a Scope 3 inventory, using standard accounting protocols, to continue measuring our impact in this area and to serve as a launching point for our Scope 3 emissions reduction efforts. In 2021, we were able to further assess our average product lifetime using an updated dataset and methodology. This resulted in an increase of the product lifetime from eight years to 25 years. That significantly impacted our overall Scope 3 emissions and the proportion represented by the use of our products. The results of this inventory activity underscored the importance of focusing on the impact of our products. To do this, Lam’s Product Innovation working group is developing a roadmap that will be integrated into product design, services, and industry collaboration. In the meantime, we plan to engage with our customers on setting their own science-aligned targets as well collaborating to support achievement of their sustainability objectives.
We also recognize how integral suppliers and their emissions reductions are to Lam’s success in reaching net zero. To ensure that our suppliers set their own SBTs to reduce emissions, we developed a supplier engagement plan that will build awareness and capability with our top direct suppliers over the coming years. To date, 10 of our top direct suppliers have already set or committed to setting SBTs. Our first Supplier ESG Forum in 2022 will encourage even more suppliers to join us on this journey.
Where possible, we aim to avoid and reduce Scope 3 emissions from business travel, including those associated with air travel, hotel stays, and car rentals. For those emissions that cannot be eliminated, we purchase the industry recognized gold-standard carbon offsets. In 2021, we offset 100% of our global air travel and rental cars, supporting renewable energy projects, distribution of efficient gas stoves, and biogas unit construction.
98%
98%
of Lam’s total emissions
65%
65%
from downstream emissions (primarily product use)
34%
34%
from upstream emissions (primarily supply chain)