2021 Environmental, Social, and Governance Report
Sustainable operations
| Goal* | Status | Progress to date |
|---|---|---|
Goal*:
Achieve net zero emissions by 2050 by meeting the following targets:
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Status: |
Progress to date:
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Goal*: Achieve net zero emissions by 2050 by meeting the following targets:
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Status: |
Progress to date:
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Goal*: Achieve net zero emissions by 2050 by meeting the following targets:
|
Status: |
Progress to date:
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| Goal*: Achieve zero waste to landfill for hazardous waste | Status: |
Progress to date:
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| Goal*: Achieve 17 million gallons of water savings (15%) in water-stressed regions from a 2019 baseline | Status: |
Progress to date:
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*We aim to achieve goals by 2025, unless otherwise stated.
We live in an increasingly connected world. As technology advances and demand increases for more powerful semiconductors and the devices they make possible, our industry grows as well. This means a greater impact on the planet and natural resources that we all share.
Lam takes responsibility for our environmental impacts by integrating environmental considerations into our manufacturing and R&D activities. At facilities around the world, we are leveraging renewable energy sources, continuing to drive energy and water efficiency and responsibly managing waste and chemicals. Bold goals—including a new goal to achieve net zero emissions by 2050—hold us accountable.
We can’t do it alone. We are also driving change across our value chain, inspiring our suppliers to decarbonize and engaging with our customers to advance their sustainability efforts.
Emissions reduction is the heart of our net zero goal. We address our carbon footprint through energy management, procurement of renewable energy, GHG abatement technologies, and, in the future, offsets of the emissions that we do not eliminate.
While only 2% of Lam’s GHG footprint is attributable to Scope 1 and 2 emissions, this is the aspect of our footprint over which we can make the most impact. Scope 1 and 2 encompasses the emissions that primarily result from our R&D, customer demonstrations, manufacturing, and other activities, as well as the electricity we purchase to power those activities. We are addressing these emissions by investing in energy efficiency upgrades and grid-scale energy solutions, including onsite renewable energy, where we can. As we work toward our net zero goal, one of Lam’s new operating principles is that all new equipment investments will be made with Scope 1 and 2 emissions in mind.
We are working toward a 2025 goal to reduce Scope 1 and 2 (market-based) emissions by 25% from a 2019 baseline, and as of the end of 2021, we have reduced emissions by 9.5% from that baseline.
More than half of our Scope 1 emissions can be attributed to process gases used for customer demonstrations and R&D activity. Scope 1 emissions went up in 2021 due to increased R&D activity and concept and feasibility studies at our Fremont lab. We mitigate our Scope 1 emissions and minimize the emissions of toxic air contaminants and hazardous air pollutants, such as carbon monoxide, nitrogen oxides (NOx), and sulfur oxides (SOx), through optimization of our semiconductor processes and the use of best-available emission control technlogies, including point-of use abatement devices and house abatement systems.
Global demand for semiconductors is higher than ever and, with it, so is demand from customers for our wafer fabrication equipment and other products. Over the past five years, Lam has added new manufacturing space to keep up with this demand. In 2021, the addition of a new building and the build-out of our existing facility in Tualatin, Oregon; the use of Sense.iTM tools in Fremont, which are more efficient on a per wafer basis for customers but increase our lab energy use on an absolute basis; the addition of new equipment at our Springfield site; and the initiation of Lam Malaysia Manufacturing in Penang all contributed to increased energy use.
While increased manufacturing and lab expansion means more energy use, this is a relationship we must decouple as we work toward our energy and climate goals. Lam has a goal to achieve 12 million kWh of energy savings by 2025 compared to a 2019 baseline. Since setting this goal, we have invested in energy efficiency projects such as LED lighting upgrades, retrofits, and improvements to HVAC equipment like air compressors. 2021 projects that helped us make progress toward this goal include:
Embracing renewable energy will also help us reach our net zero goal. We aim to use 100% renewable energy globally by 2030, and in 2021 we developed a strategy and roadmap to achieve this goal. Our roadmap will leverage a combination of available options at each site, including onsite solar, and market-based instruments.
Abhinav Rao
research scientist
“Lam has a unique silicon growing process, which we continuously aim to improve upon by applying our Tech Vision principles. And in this case, our innovative approach resulted in not only growing better crystals but a significant
reduction in energy use.”
Growing silicon ingots is an energy intensive process and our team in Springfield, Ohio looks for opportunities to optimize the equipment and process to save energy. In 2021, Abhinav Rao and Joshua Russell, research scientists, implemented process improvements that reduced the number of attempts to grow each crystal and increased the probability of growing a defect-free crystal, which resulted in decreasing the energy consumption per mm of silicon grown.
For example:
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.
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.
Before the COVID-19 pandemic, Lam employees carried out internal audits by visiting our locations around the globe, which contributed to our Scope 3 emissions from business travel. In the wake of travel restrictions, senior internal audit manager Kristin Gallardo created a streamlined approach. Gallardo leveraged the diverse language skills of her team and their contractors to choose culturally relevant key words in Audit Command Language software to identify inappropriate expenses, duplicates in expense reports, and compliance with Lam’s policies. What used to take one to two weeks due to travel, manual processes, and random sampling can now be completed in a single day, with the added benefit of reducing travel and the associated carbon emissions.
Lam generates waste in the research, development, and manufacturing of our products. We monitor and manage both hazardous and non-hazardous wastes, looking for ways to reduce, recover, reuse, and recycle materials. In addition, Lam maintains ISO 14001 certification at nearly all of our manufacturing and R&D facilities to reduce our environmental impact through more efficient use of resources.
Most of the waste that Lam generates is non-hazardous, consisting of materials like wood pallets, cardboard and packaging materials, and municipal wastes. In 2021, our non-hazardous waste generation rose due to increased activities at our manufacturing and R&D facilities compared to the previous year and the addition of our Malaysia facility.
The facilities team at our Tualatin, Oregon plant initiated a recycling pilot in 2021 to dramatically increase recycling for hard-to-recycle plastics.
The pilot resulted in:
Note: In 2020, we updated our methodology in calculating recycling rate for solid wastes in order to align with SASB.
The manufacturing of our products involves chemicals that produce corrosive wastes, flammable wastes, and lab debris, all of which are considered hazardous. We follow strict controls for responsible handling of these waste streams. Because this waste is an inherent part of our R&D and manufacturing processes, we do not have a goal to reduce this waste. Instead, we aim to find alternative disposal streams for all hazardous waste so that none goes to landfill.
We continue to divert most of our hazardous waste to offsite wastewater treatment and recycling facilities, which use treatment methods including fuel blending, solvent recovery, metal recycling, deep-well injection, and off-site wastewater treatment. In 2021, we sent 1% of our total global hazardous waste to landfill. This was slightly above the amount we sent in 2020 due to pandemic-related backlogs at the incineration facilities where some of our waste is managed.
Lam works with CHWMEG, a nonprofit trade association whose members strive to efficiently steward waste. CHWMEG audits our major offsite hazardous waste treatment, storage, and disposal facilities (TSDF). This audit is an integral part of our TSDF selection and risk assessment process.
Note: In 2020 we started tracking any wastes sent to waste-to-energy
Just as we manage waste generated during our production processes, we also carefully manage the chemicals that people encounter as part of manufacturing. Chemical management is part of our EHS standards, which also include guidelines related to:
Lam uses a chemical information management system (CIMS) to facilitate chemical use approval at each site and to track and monitor our chemical inventories.
Water is essential to our business, our suppliers, and our customers. It’s also a critical part of Lam’s own R&D and manufacturing processes. We use freshwater in our chillers, house scrubbers, process cooling water system, and soft water treatment plant. The quality of the water is also important—the cleaner the water we use, the fewer chemicals we need to treat it, and the less maintenance is needed on our facility equipment.
In 2019, Lam used the World Resources Institute (WRI) Aqueduct Water Risk Atlas to identify areas with water stress. During this process we identified three facilities to focus on, which include our two sites in California and our manufacturing facility in South Korea. In 2021, we have also identified our new site in Malaysia, our leased facilities in India, and our new technology center in South Korea as water-stressed areas.
We have a goal to achieve 17 million gallons in water savings in water-stressed locations by 2025 using a 2019 baseline. Since setting this goal, Lam’s Global Workplace Solutions (GWS) team has explored new technology solutions and invested in efficiency upgrades in accordance with emerging best practices. These solutions include recycling of treated wastewater for house scrubbers and point-of-use abatement units, and use of brackish water for landscaping and fire suppression. We added eight water recovery units to our abatement systems in California in 2020 and another seven in 2021. In 2021, we saved 6.3 million gallons of water at our water-stressed locations.
We monitor industrial wastewater and stormwater discharges in accordance with local regulatory requirements. In many cases, we reuse process wastewater for other aspects of our operations, allowing us to use less water overall. We are finishing the construction of wastewater reclamation and recycling systems and acid waste neutralization systems at our California and Korea facilities. These new systems are expected to be fully operable in 2022 and will save over 20 million gallons of water per year once in use, exceeding Lam’s 2025 goal.
Lam Villach takes its cues from the Austrian ‘smart city’ in which it’s located. From a planned neutralization plant that enables our operations to minimize acid concentrates and hazardous waste generation, to the use of 100% renewable energy through a combination of onsite solar and purchased energy, sustainability features permeate the campus. Seven new electric vehicle charging stations were added in 2021, bringing the total to 11. Outside, employees can enjoy fruit trees and pollinator plants, and harvest herbs and vegetables from the garden.
Across the world, Lam employees take action to reduce their own environmental impacts and those of the company. Throughout the year, we offer programs to engage employees and build momentum for sustainability. These include:
Transformative change often comes from the grassroots. Lam’s Employee Sustainability Community (LESC), launched in 2021, invites all employees and contractors globally to collectively enact sustainable change inside and outside of Lam. The group meets monthly to hear from guest speakers and brainstorm new programs. To date, LESC has organized initiatives such as Plastic Free July, in which participants were challenged to use as little single-use plastic as possible. The group is also advocating for more plant-based food in facility cafeterias to reduce food-related emissions.
Beyond LESC, Lam also has three employee Green Teams, which are site-specific groups that focus on improving our campuses’ ecological sustainability, including improving waste diversion, enhancing natural spaces, and conserving resources. Green Teams are currently active in Tualatin, Livermore, and Fremont.
A critical piece of our employee engagement strategy is rooted in the recognition and celebration of our employees’ environmental efforts. For the second year, Lam presented Environmental Stewardship Awards to individuals and groups who advocate for sustainable practices, both at Lam and in their communities. We’re proud to recognize the 2021 winners:
Throughout Asia, employees took part in World Environment Day events, including a beach cleanup at Pasir Ris Beach Park in Singapore and a litter cleanup day in Shanghai.
During Earth Month, employees participate in the EcoChallenge, a 30-day challenge organized by EcoChallenge.org. Throughout the month, participants can commit to reduce waste and water, use less energy, eat healthy meals, and spend more time outdoors. In 2021, the winner of the challenge was Lisa Thamer, an administrative support professional in Austria. Lisa adopted many new habits during the 30-day period, including wasting less food, switching to LED bulbs, planting trees, and learning about environmental practices.
Lisa Thamer
EcoChallenge winner
“The EcoChallenge makes participants stop and think about what they are doing for or against our planet. This can be a ‘wake-up call’ to change their ways.”
Insects are small but mighty partners in protecting the health of ecosystems. Lam Research teams worldwide have taken steps to promote healthy local insect populations, such as:
