Sustainable
operations
Around the world we are stepping up to bring our net zero vision into sight.
The way we operate speaks to who we are and what we value. At Lam, our Core Values drive us to take ownership, hold ourselves accountable, and continuously improve. These values shape our approach to reducing Lam's environmental impact, and executing on our commitment to operating responsibly and improving our sustainability performance over time.
Positive change requires action, so we are pursuing global initiatives to reduce our energy and water consumption and minimize waste. By 2050, we aim to achieve net zero emissions. It's a bold ambition, and Lam was among the first in the semiconductor industry to establish such a goal. Our net zero roadmap outlines our path to achieving climate progress. It informs the way we create products, upgrade our facilities, and allocate our resources and time.
In 2022, our employees mobilized to move our climate and environmental initiatives forward. They completed solar and energy-efficiency projects and exceeded our water-savings goal. Lam closed the year by joining the Semiconductor Climate Consortium as a founding member, demonstrating our company's climate leadership on a global scale. As the work continues, we're energized by how far we've come and our vision for a greener future ahead.
Sustainable Operations1
| Goal | Status | 2022 progress |
|---|---|---|
| Goal: Achieve net zero emissions by 2050 by meeting the following targets: | ||
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| Goal: Achieve zero waste to landfill for hazardous waste |
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| Goal: Achieve 17 million gallons of water savings (15%) in water-stressed regions from a 2019 baseline |
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2022 highlights
Achieved Science-Based Target initiative (SBTi) validation for our near-term environmental goals5
Exceeded our 2025 water target
Completed renewable
electricity projects
at two sites
- Unless stated otherwise, we aim to complete each of our ESG goals by 2025.
- Previously, this goal targeted 100% renewable energy by 2030. Lam updated this goal in 2022 per the SBTi verification and approval process.
- Previously, the 2030 goal targeted a 46% reduction in Scope 1 and 2 (market-based) GHG emissions. Due to a previously unidentified source of Scope 1 emissions, Lam worked with SBTi to update our 2019 emissions inventory and restate our 2030 goal.
- Primarily due to the increase in usage of a specific chemical in our testing process between 2019 and 2022.
- The 2030 goal was validated in 2022 and was subsequently restated in 2023 in alignment with SBTi.
- Note: Sustainable Operations data is comprehensive of all Lam-owned and leased facilities, including our subsidiary Silfex. Energy, waste, and water data is not currently included for Avonisys, Coventor, Metryx, SemSysco, Solmates, or Talus. Greenhouse gas emissions for these entities is included in our reported scope 1 and 2 emissions (Talus, Metryx, and Coventor), or within our scope 3 investment data (Avonisys, Solmates, SemSysco).
Advancing our net zero roadmap
While net zero emissions is our long-term vision, our success starts with the action we take today. Our net zero roadmap outlines our strategy to achieve time-based targets that keep us accountable and on track. Lam's Net Zero Leadership team drives these efforts with ultimate oversight from our Board.
Externally, we engage our customers and suppliers to support them in setting and achieving science-based targets (SBTs). We strive to lead by example, and in 2022 we achieved SBTi validation for our near-term GHG-reduction goals. These goals are in line with limiting global warming to 1.5°C, representing the most ambitious SBTi designation available. We recently discovered a source of Scope 1 emissions which caused a significant increase of our previously reported Scope 1 emissions, dating back to our 2019 baseline year. This led us to work with SBTi to restate our 2030 goal by targeting a 60.6% reduction in Scope 1 and 2 (market-based) emissions, instead of the prior target of a 46% reduction. We are acting with expediency with a goal to eliminate this emissions source completely.
By identifying risks related to climate change, we can take meaningful steps to make our company more resilient. Learn more about our 2021 climate change risk analysis assessment and how our practices align with frameworks, such as the Task Force on Climate-related Financial Disclosures
Net zero roadmap
Achieved
2021
Announced SBTi intention and net zero pathway
2022
Achieved SBTi approval for three near-term emissions-reduction targets
2025
- Reduce Scope 1 and 2 (market-based) GHG emissions by 25% from a 2019 baseline
- Achieve 12M kWh in total energy savings
- 46.5% of suppliers and 83% of customers measured by emissions will set SBTs
2030
- Reduce absolute Scope 1 and 2 GHG emissions by 60.6% from a 2019 baseline1
- Achieve 100% renewable electricity
- 95% of top direct suppliers measured by spend will set SBTs
2040
- Achieve net zero operations (Scope 1 and 2)
- Achieve absolute reduction in supply chain emissions (goal to be set)
2050
Achieve net zero emissions
- Previously, the 2030 goal targeted a 46% reduction in Scope 1 and 2 (market-based) GHG emissions. Lam updated this goal in 2023 following a restatement of our baseline in alignment with SBTi.
Driving reductions in each scope
Each part of Lam's value chain presents unique emissions-reduction challenges and opportunities. For instance, while we have the most control over reducing our Scope 1 and 2 emissions, they account for only about 8% of our combined 2022 Scope 1, 2, and 3 GHG emissions. To achieve net zero emissions, we must take a value-chain-wide approach, with a focus on operational efficiency and supplier, employee, and customer engagement. More details on our emissions management can be found in our annual CDP Climate Change questionnaire submission.
Breaking down our 2022 value chain emissions
Upstream activities
| Scope | GHG emissions | Emissions Details | How we're driving reductions |
|---|---|---|---|
| Scope: Scope 3, indirect | GHG emissions: 2,034,127 metric tons carbon dioxide equivalent (MTCO2e) |
Emissions Details:
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How We're driving reductions: Engaging suppliers to set SBTs and providing support and resources to help them build carbon measurement and reduction capabilities and purchasing offsets for portions of our business travel |
Lam facilities & operations
| Scope | GHG emissions | Emissions Details | How we're driving reductions |
|---|---|---|---|
| Scope: Scope 2, market-based indirect | GHG emissions: 63,300 MTCO2e |
Emissions Details:
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How We're driving reductions: Maximizing energy efficiency, purchasing RECs, and investing in large-scale projects to transition to renewable electricity |
| Scope: Scope 1, direct | GHG emissions: ~433K MTCO2e |
Emissions Details:
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How We're driving reductions: Optimizing our processes and products, investing in emissions controls and energy-efficiency technologies, updating manufacturing and lab processes, and evaluating lower global warming potential process gas alternatives |
Downstream activities
| Scope | GHG emissions | Emissions Details | How we're driving reductions |
|---|---|---|---|
| Scope: Scope 3, indirect | GHG emissions: 4,733,017 MTCO2e |
Emissions Details:
|
How We're driving reductions: Developing efficient products and processes, establishing a baseline for product-based energy consumption and emissions, and engaging customers to set SBTs |
Scope 1 and 2 GHG emissions by year
Process chemistry emissions by type
2022 GHG emissions Highlights
496,298
combined MTCO2e Scope 1 & 2
(market-based) GHG emission
92%
of Lam's GHG footprint
made up of Scope 3 emissions
23%
reduction in Scope 2 (market-based) GHG emissions from 2019 baseline
1%
increase in Scope 3
GHG emissions from 2021
From 2019 to 2022, our overall Scope 1 and 2 emissions increased by 207% from our updated 2019 baseline. The baseline values and subsequent year emissions growth is primarily due to a 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. We revised the historical data on this page to reflect these changes. In addition, we limited our Scope 3 emissions increase to a modest 1% despite seeing nearly 18% in revenue growth.
Decarbonizing our industry together
Lam has long been active in SEMI, the global industry association representing the electronics manufacturing and design supply chain. In 2022, we joined SEMI's Semiconductor Climate Consortium as a founding member. The consortium is the first global, ecosystem-wide collaborative of semiconductor companies dedicated to reducing industry-based emissions. Through collaboration, transparency, and ambitious goal setting, we aim to advance our industry's response to climate change—one of the most pressing challenges of our time.
As a participant, Lam has the opportunity to:
Rollover an icon for more.
Shape industry standards on sustainability
Share knowledge and best practices, and collectively solve the industry's big challenges
Leverage industry-level collaborations to accelerate our own climate progress
Lam is committed to proactive climate action. We share the Semiconductor Climate Consortium's vision to drive progress on climate challenges within our industry. By collaborating with fellow members, we hope to accelerate solutions with greater speed and scale than can be achieved alone."
Shawn Covell
managing director, global
ESG strategy at Lam
Optimizing energy
We can't power semiconductor breakthroughs without consuming energy—and our energy needs increase as our operations expand. Our goal is to adopt solutions that decouple Lam's growth from increased energy use and emissions. To do so, we're transitioning toward renewable electricity and optimizing our facilities and processes to be more energy efficient. Currently, our renewables are sourced from a mix of onsite solar and renewable energy credits.
Pursuing 100% renewable electricity
Our Villach, Austria, plant uses 100% renewable electricity through a combination of onsite solar and purchased electricity. In 2022, we completed a solar expansion project to achieve additional energy generation at the site, which now generates approximately 3.6 megawatt-hours (MWh) per day. We project that the site will eventually generate 8 MWh per day following further expansion work planned for 2024.
Meanwhile, at our facility in Malaysia, which we opened in August 2020, we completed a two-part solar project. Lam's Global Workplace Solutions (GWS) team expedited phase two of the solar project, completing the installation of 1,076 solar panels in December 2022.
Our Malaysia facility's new solar panels cover the majority of the roof's 800,000-square-foot rooftop and generate 13 MWh per day. They supply 20% of the site's electricity requirement.
Using an innovative mindset to increase global energy savings
In our everyday lives, many of us adopt energy-conscious behaviors—from turning the thermostat down during cold-weather months to turning the lights off when we leave a room. At Lam, we take a similar approach to drive energy-efficiency improvements. When implemented at our facilities, these upgrades can lead to large-scale savings in energy, emissions, and costs.
Recently, we turned our attention to Lam's new manufacturing site in Malaysia, a state-of-the-art facility designed with efficiency in mind. Lam's outlook: Why stop there when we can make it even better? We challenged the site's employees to push efficiency further. In response they embarked on a series of building improvements, including:
- Reducing lighting during off hours
- Reducing cooling in the office
- Exploring the potential to reduce cleanroom humidity in the future
Some solutions turned out to be simple but required critical thinking. For example, by reducing pressure in the facility's clean room, they enabled the fans to slow down—achieving energy savings while keeping the space contaminant free.
Our teams also drove improvements at sites in the U.S., completing lighting upgrades in Livermore, California; commissioning a scrubber to reduce fan speed in Fremont, California; and installing a variable frequency drive (VFD) air compressor and chiller in Tualatin, Oregon. Installing a VFD chiller resulted in immediate energy savings. Additionally, by monitoring the chiller's operation and adjusting its controls, the Tualatin facilities team nearly doubled the energy savings achieved from installing the equipment itself. For 2023, we have enrolled in energy-efficiency programs sponsored by the local utilities in Oregon and California to identify and implement low- or no-cost improvements.
Energy usage by type
Improving seed lift
At our facility in Springfield, Ohio, we grow silicon ingots—large crystals that are sliced into wafers. Getting the seed of the ingot to lift into a defect-free crystal is a highly technical and energy-intensive process. In 2021, we implemented process improvements that reduced the number of attempts to achieve each high-quality crystal. We conducted a follow-up seed lift project in 2022, which enabled improved mixing and energy efficiency, and therefore increased energy savings and yield. Outcomes included:
- Nearly 50% increase in the speed at which crystals are pulled
- 13.7% increase in energy savings per wafer millimeter
Accelerating water savings
Water is a key component in semiconductor manufacturing, making it critical to our company, suppliers, and customers. At Lam, we rely on freshwater to operate our chillers, house scrubbers, process cooling water systems, and soft water treatment plants. It's a precious resource that we share with our communities.
In water-stressed regions, we know it is imperative to manage water as responsibly and sustainably as we can. In 2022, we exceeded our goal to achieve 17 million gallons of water savings in water-stressed regions from a 2019 baseline by 2025. As part of setting this goal, we used the World Resource Institute Aqueduct Water Risk Atlas to identify which of our facilities were in water-stressed regions. To date, we have identified six sites throughout California, South Korea, India, and Malaysia. However, regions identified as water-stressed shift over time, so we will continue to periodically review and update this list.
In these and other areas, our GWS team explores and invests in water-saving technologies and efficiency upgrades. We monitor industrial wastewater and stormwater discharges in accordance with local regulatory requirements, and often find ways to repurpose process-based wastewater to support other areas of our operations. To build on our success in achieving our initial water-savings goal, we are updating our 2025 goal to 80 million gallons of water savings from a 2019 baseline.
Pursuing—and exceeding—our water-savings goal
2020
Added eight water recovery units to our abatement systems in California.
2021
Added another seven water recovery units in California.
2022
Updated our 2025 goal to achieve 80 million gallons of water savings.
Operationalized reuse and recovery systems and additional water recovery units at our sites in Malaysia; South Korea; and Fremont, California. These projects led us to drive widespread water savings and exceed our 2025 water-savings goal.
Learn more about our approach to responsible
water management on our website and in our
annual Water Security submission to CDP 
2022 water-savings highlight
33.4 million
gallons of water savings in water-stressed regions
40 to 45 thousand
gallons of water saved per day at our Springfield, Ohio, site through water reclamation and reuse, with ongoing efforts to find additional water-saving opportunities
Water use, treatment, and recycling by year
2022 Water usage in water-stressed regions1
| Million Gallons | % of total usage | |
|---|---|---|
| Fremont | 118.6 | 29.79% |
| Malaysia | 25.9 | 6.49% |
| South Korea | 16.9 | 4.24% |
| Livermore | 10.8 | 2.72% |
| India | 0.3 | 0.08% |
| Total | 172.5 | 43.33% |
- Water-stressed regions as identified through the World Resources Institute (WRI) Water Risk Atlas.
Maximizing value by minimizing waste
To ensure a sustainable future, we need to reduce waste. Whether it's operating more efficiently or embracing circularity, we're committed to doing our part.
Lam generates both non-hazardous and hazardous waste as we research, develop, and manufacture our products. We actively monitor this waste and manage it in accordance with industry best practices, and our ISO 14001 multi-site certification drives us to reduce our environmental impact by using materials as efficiently as we can.
Embracing circularity to reduce non-hazardous waste
Most of the waste we generate consists of non-hazardous materials, such as wood pallets, cardboard and packaging, and municipal waste. To reduce these streams, we employ circular practices, such as waste reduction, recovery, recycling, and reuse.
In 2022, our teams identified strategies to better manage and reduce non-hazardous waste. They partnered with a third party to conduct reporting and internal audits, which resulted in key recommendations for efficient waste management practices. We are now engaging employees to implement these practices globally, while exploring an additional third-party partnership to examine our practices related to receptacles, signage, composting, compacting, and more. Lam has also joined SEMI's Circularity working group to share best practices and collaborate to advance further industry innovations.
2022 non-hazardous waste
management highlights
9,261 million tons
of non-hazardous waste generated
77%
recycling rate
Non-hazardous waste generation and recycling
Non-hazardous waste recycling by material
Our commitment to strong environmental management
Lam holds ISO 14001 multi-site certification for environmental management, which covers our Fremont and Livermore, California; Tualatin, Oregon; and Villach, Austria; sites, and individual site certification for Osan, Korea and Eaton, Ohio. As an engaged member of the RBA, we also complete voluntary assessments across our manufacturing sites.
In 2022, our sites' self-assessment questionnaires (SAQ), which cover environmental and social topics, low-risk scores. We also earned Silver recognition for our first RBA-validated audit at our Livermore, California, site.
Innovation Spotlight
Reduce. Reuse. Rethink.
Sometimes it pays to challenge the status quo and test new ways to optimize existing processes. That was true for a manufacturing process where we shipped unused parts back to the warehouse to be returned to stock.
In the past, our material handlers shipped each part in individual boxes, which were discarded once the parts were re-stocked and stored in bulk. Then, Willis Wah, who joined Lam from a global shipping company, put his expertise to work to streamline the process and reduce packaging waste.
As the manager of logistics for Lam's Fremont, California, campus, Willis worked with the Warehouse team to consolidate and ship the parts in reusable totes. Within the first month of implementation, the new process helped Lam avoid using approximately 275 boxes. It also led to reduced labor hours and transportation costs, and made stress injuries less frequent among material handlers.
Responsible hazardous waste management
Our manufacturing processes and research & development (R&D) operations use chemicals that produce hazardous waste, such as lab debris and waste that is corrosive or flammable. We follow strict controls to responsibly handle each of these streams and aim to divert hazardous waste from landfills by finding alternative methods of disposal. As part of our commitment to environmental stewardship and due diligence, we conduct a periodic risk assessment of our hazardous waste treatment, storage, and disposal facilities (TSDF). Lam partners with CHWMEG—a nonprofit trade association whose members strive to efficiently steward waste—to perform comprehensive TSDF audits, the results of which we integrate into our risk assessment process.
Proactive chemicals management
Chemicals enable us to manufacture leading-edge products, and they're essential to R&D. Our site Environmental Health and Safety (EHS) and Product groups work together to ensure our employees handle these materials with caution and care. This begins even before chemicals arrive at Lam's sites, as we use a chemical information management system to track and monitor our chemical inventories and approve site-based chemical requests. Once onsite, our teams focus on proper transportation, storage, and inventory management to track where and how chemicals are used and manage potential risks.
In 2022, we continued to drive consistency among all Lam sites and integrate a chemical information management system as part of the overall chemical management process at the new sites in South Korea, Malaysia, and India. In 2023, we plan to improve our purchasing systems to allow easier and more automated environmental reporting.
Learn more about our hazardous
waste disposal methods
Hazardous waste generation and recycling
99.99%
hazardous waste diverted from landfills in 2022
Hazardous waste by disposal method
Embracing green chemistry practices
We use our expertise to weigh the benefits and drawbacks of various chemicals in terms of their effectiveness, availability, and impact on the environment. As global chemical regulations become more complex, we are proactively working with our supply chain partners, chemical suppliers, and chemicals management systems to ensure Lam's ongoing compliance and to adopt emerging green chemistry practices.
We work with our engineers and designers to make decisions with the planet in mind. In 2022, we created a tool that engineers can use to assess the GHG emissions intensity of various recipes that are used to process the wafers. We plan to expand on this project in 2023 and share the insights we've gained across our organization.
Managing air pollution
Clean air is essential for human and environmental health, and we are committed to doing our part to reduce air pollution. As we work to reduce emissions, our teams have pilot programs in place to further integrate Lam's tools with our customers' chemical systems. This allows us to minimize chemical waste and maximize abatement system efficiency. Sometimes we do this by using external abatement systems. In other cases, we focus on selecting processes that minimize the use of high global warming potential chemicals and thereby reduce emissions.
Engaging employees in
environmental action
For many of Lam's passionate employees, internal sustainability is just the start. We're proud to see our employees get involved with their local communities to plant trees, protect biodiversity, and advocate for environmental health. A key pathway for employee-led sustainability action is Lam's Employee Sustainability Community (LESC). This employee resource group (ERG) includes more than 450 global members working to support sustainable change.
In 2022, LESC facilitated many volunteer and learning opportunities, including inviting Stacey MacNeil, Lam's chief communications officer, to discuss our company's net zero roadmap. LESC members in Malaysia planted trees to mark 50 years of industrialization in the country, and, in India, LESC hosted a Best out of Waste competition to showcase employees' commitment to recycling and reuse.
Because of these efforts, LESC received Lam's 2022 Environmental Stewardship Award, which highlights employees' environmental efforts, both at Lam and in our communities. Sponsored by EHS, the Environmental Stewardship Awards are part of a larger campaign for Earth Month, which, this year, included events around the globe. Many more environmental activities took place throughout the year, as employees acted with purpose for a better, greener world.
LESC Malaysia formed after learning about the company's net zero ambition and roadmap. We're a passionate group of individuals working to spread awareness and directly support Lam's ESG goals. We strive to leverage our Core Values, cross-functional collaboration, and continuous improvement to make a positive impact on the planet."
EC Pon
LESC Malaysia co-leader at Lam
