Shawn Covell, managing director, Global Environmental, Social, and Governance Strategy talks about the net zero goals announced in Lam’s 2020 ESG report.
Heat domes and wildfires in the Western U.S., increased intensity of hurricanes, rising sea levels, floods, and more. It can all feel a bit overwhelming. Climate change is one of the most substantial challenges of our time and we are already experiencing its impact.
As a company, we are starting to take bold action to help halt the climate crisis and net zero will be a key goal we will employ to address our climate impact across our business. Driven by the substantial demand for digital products, the environmental impact of the semiconductor industry is rising. And industry players are responding. Many customers are setting renewable energy and carbon neutral targets, with equipment suppliers following suit. Beyond the focus from our customers, investors are paying closer attention to our environmental, social, and governance (ESG) efforts, of which carbon emissions reduction is a core element. In 2019, we took steps to address this increased stakeholder focus by setting two carbon-related 2025 goals:
Given the urgency around climate change and stakeholder interest, Lam has ramped up our ambitions with goals to operate 100% on renewable energy by 2030 and achieve net zero carbon emissions by 2050. To achieve these goals, Lam will need to reduce operational and value chain greenhouse gas emissions along a 1.5°C science-aligned pathway and offset its residual emissions. Our developing net zero strategy is intended to allow us to decouple our operational carbon footprint from business growth, while reducing upstream and downstream emissions.
One key step in this journey is developing detailed strategies and action plans to achieve our goals. We are building on a robust foundation of activities that include managing our environmental impact, engaging with our supply chain, and designing our products with ‘green’ in mind. Our 2020 ESG Report details some of our key accomplishments in these areas.
As we start to think about how net zero applies to our daily work, all ideas on how to reduce our environmental impact, support customers’ sustainability goals, spur innovation, and scale our initiatives are on the table.
This article contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements that are not statements of historical fact, including statements regarding our ESG plans and goals. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations expressed, including the risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10-K. You should not place undue reliance on forward-looking statements. We undertake no obligation to update any forward-looking statements.