2050 Net Zero Strategy – Lam Research Blog
At Lam, we have a responsibility to contribute to a better world. And as the need to address climate change and slow global warming grows increasingly urgent, we are acting with purpose.
Across our organization, we are taking ownership and accountability to reduce carbon footprints and care for our planet. We’re working with our customers, suppliers and employees to get there. Together, we’re thinking big and moving toward net zero.
Establish the vision. Do the work. That’s how we’re bringing our net zero ambition into sight. Our approach to progress includes:
Net zero is a climate action goal to balance the amount of greenhouse gases (GHGs) being released into the atmosphere with the amount of GHGs being removed. Lam has joined organizations worldwide that are setting net zero goals so that, collectively, we can limit global warming to 1.5 degrees Celsius.
Announced Science-Based Target initiative (SBTi) intention and net zero pathway
Achieved SBTi approval for three near-term emissions reduction targets*
Reduce absolute Scope 1 and 2 (market-based) GHG emissions by 25% from a 2019 baseline
Achieve 12M kWh in total energy savings from a 2019 baseline
46.5% of suppliers and 83% of customers measured by emissions will set science-based targets (SBTs)*
Reduce absolute Scope 1 and 2 (market-based) GHG emissions by 60.6% from a 2019 baseline*
Achieve 100% renewable electricity*
95% of top direct suppliers measured by spend will set SBTs
Achieve net zero operations
(Scope 1 and 2)
Achieve absolute reduction in supply chain emissions (goal to be set)
Achieve net
zero emissions
* Short-term GHG emission reduction targets approved by the SBTi
While our net zero goals are forward thinking, progress starts now. With our long-term roadmap in place, we’re building the foundation needed to achieve our goals. That means ramping up our resources, building teams and detailed plans, and focusing on three key areas of our business. Here’s a look at the actions we’re taking across our organization and supply chain.
As we work to decarbonize our operations, we’re focused on optimizing energy, reducing water usage, and minimizing waste. We’re also investing in renewable electricity solutions, with solar arrays installed at several sites.
We collaborate with suppliers to reduce our supply chain-based emissions through ongoing engagement and data collection. Lam’s Supply Chain ESG team spearheads these efforts and has launched a supplier engagement platform to track suppliers’ climate-related goals and performance.
We are establishing baseline data for our products’ energy consumption and GHG emissions and engaging with customers to align on sustainability metrics and targets. This work informs our investments in R&D as we develop solutions that support our company and customers’ emissions-reduction goals.
Achieving net zero emissions is a critically important initiative. It requires strong governance to deliver effective outcomes. With this in mind, oversight goes all the way up to our Board of Directors. We also have a Net Zero Leadership team and various working groups to support and monitor our ongoing progress.
To inspire broader action, we engage closely with Lam’s customers and suppliers and are active in industry organizations. We strive to lead by example, including by becoming the first U.S.-based semiconductor equipment manufacturer to receive SBTi approval for its near-term GHG emissions reduction goals. Lam is also a founding member of the Semiconductor Climate Consortium, the first global, ecosystem-wide collaborative of semiconductor companies dedicated to reducing GHG emissions. Through collaboration, transparency, and ambitious goal setting (in accordance with the best available science) the consortium aims to advance the semiconductor industry’s response to climate change—one of the most pressing challenges of our time.
Learn more about our ESG governance
We take a proactive approach to all aspects of risk management and our approach to climate change is no different. By identifying the risks that climate change poses, we can take meaningful steps to make our company more resilient. In 2021, we worked with a third party to complete an in-depth climate change risk analysis. Through the assessment, we also identified opportunities to unlock benefits for our stakeholders and business. The results of the analysis include:
As we learn more about the likelihood and potential effects of these risks, we will continue to share our management and mitigation efforts with stakeholders. To ensure best practices in making and reporting progress, we align our efforts with leading ESG disclosure frameworks including the Sustainability Accounting Standards Board (SASB), the Global Reporting Index (GRI), and the Task Force on Climate-related Financial Disclosure (TCFD). Several of our practices align with the TCFD categories listed below:
Scope 3 emissions inventory to understand impacts in the value chain
2050 goal to achieve net zero across all emissions scopes, with interim goals for 2030 and 2040
Strong governance to manage and escalate risk to appropriate levels
Regular ESG reports to the Board and the Nominating and Governance Committee
Net zero leadership team and cross-functional working groups
Annual net zero objectives integrated into corporate accountability systems and review
View our submissions
Download our Net Zero Emissions Infographic
The statements in this document are current as of April 2022. They include statements regarding our net zero initiative, strategy and goals that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 the Risk Factors in our Form 10-K and 10-Q filings with the U.S. Securities and Exchange Commission. We undertake no obligation to update any forward-looking statements.
We have a responsibility to contribute to a better world.
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Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry.
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Statements made on our Company webpage that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our goal to be net zero by 2050, our ESG strategy and related goals, our renewable electricity goals, our continued commitment to business integrity, the strength and effectiveness of our ethics and compliance framework, our environmental footprint, sustainability in our industry, our social impacts, our inclusion and diversity initiatives, and the sustainability of our products and operations. 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 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 its 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 that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our most recent annual report on Form 10-K and our quarterly report on Form 10-Q. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update any forward-looking statements.
