ESG Strategy

Today’s environmental, social, and governance investments unlock new possibilities for the semiconductor future.

At Lam, our ESG strategy provides a framework for focused action. From our day-to-day decisions to our long-term relationships and investments, the strategy supports a holistic and proactive approach to managing ESG-related opportunities and risks.

We emphasize accountability and conduct regular progress assessments to advance our ESG goals. We aspire to transparency in our processes and performance and strive to continuously expand Lam’s disclosures in alignment with industry-recognized frameworks, best practices, and standards.

Our ESG mission

We elevate human prosperity and protect the environment in our operations, supply chain, and the products we create.

ESG goals

Our ESG goals keep us focused and accountable for building momentum across our ESG pillars. Unless stated otherwise, we aim to complete each of our ESG goals by 2025.

Behind Schedule
On Track
Achieved

Governance
Goal	Status	2023 Progress
Goal Continue to expand our disclosure and alignment with industry-recognized frameworks and standards.	Status	2023 Progress Our efforts to increase disclosure maintained or improved our ratings and rankings with third parties.

Product innovation¹
Goal	Status	2023 Progress
Goal 83% of customers measured by emissions have science-based targets (SBTs).	Status	2023 Progress 10% of customers as measured by emissions have set SBTs.

Sustainable operations¹
Goal	Status	2023 Progress
Achieve net zero emissions by 2050, including by meeting the following targets:
Goal Achieve 100% renewable electricity by 2030.	Status	2023 Progress Sourced 50% renewable electricity globally in 2023.
Goal Reduce absolute Scope 1 and 2 (market-based) greenhouse gas (GHG) emissions 25% by 2025 and 60.6% by 2030 from a 2019 baseline. By 2040, achieve net zero operations.	Status	2023 Progress 51% decrease year-over-year and 48% increase from a 2019 baseline for Scope 1 and 2 (market-based) GHG emissions.
Goal Achieve 12 million kilowatt-hours (kWh) in total energy savings from a 2019 baseline.	Status	2023 Progress Achieved 2.8 million kWh in annual energy savings, for a cumulative 9.8 million kWh in savings towards our 2025 goal.
Goal Achieve zero waste to landfill for hazardous waste.	Status	2023 Progress Diverted 99.97% of hazardous waste from landfills in 2023.
Goal Achieve 80 million gallons of water savings from a 2019 baseline.	Status	2023 Progress Achieved 65.9 million gallons of water savings from a 2019 baseline, including 20.1 million gallons in 2023.

Workplace
Goal	Status	2023 Progress
Goal Build on our high-performance culture with global employee engagement at the global benchmark as measured by our annual employee survey.	Status	2023 Progress Ended the year with an engagement score of 76, two points below the global top 25% benchmark.
Goal Maintain an Occupational Safety and Health Administration (OSHA) recordable injury rate at or below 0.4 annually.	Status	2023 Progress Realized recordable injury rate of 0.33.
Goal Increase the proportion of women (globally) and underrepresented employees (U.S.) across the company.	Status	2023 Progress Increased the proportion of women in our global workforce by 2.5%. Decrease in proportion of underrepresented employees (U.S.) by 5.4%.

Responsible supply chain¹
Goal	Status	2023 Progress
Goal Achieve more than 90% compliance with our social and environmental expectations across our top suppliers.	Status	2023 Progress Exceeded our goal with 94% of top suppliers responding to our conflict minerals survey.
Goal Engage with at least 50% of our top suppliers on environmental sustainability opportunities.	Status	2023 Progress Engaged with 100% of top suppliers.
Goal Increase engagement with suppliers on social and environmental topics through assessment, training, and capacity building.	Status	2023 Progress Deepened supplier engagement through our second-annual Supplier ESG Forum, monthly webinar series and newsletters, and energy assessments.
Goal 46.5% of suppliers by emissions have SBTs.	Status	2023 Progress 26% of suppliers as measured by emissions have set SBTs.

Community
Goal	Status	2023 Progress
Goal Determine key targets for larger-scale impact aligned to a new strategic focus.	Status	2023 Progress Achieved by launching our Powering Breakthroughs Together social impact framework with strategic focus areas to guide our giving and signature program initiatives.
Goal Implement measurement of outcomes for key program and large-scale grants.	Status	2023 Progress Continued to develop, refine, and test our reporting process for key programs and large-scale grants.
Goal Increase annual unique participation rate in all employee giving programs from 10% to 30%.	Status	2023 Progress Increased annual unique employee participation rate from 18% in 2022 to 20% in 2023.
Goal Contribute 40,000 employee volunteer hours annually.	Status	2023 Progress Contributed 30,677 employee volunteer hours in 2023.

We aspire to integrate ESG into everything we do

In our workspaces and across our supply chain

Integrity

Our Ethics and Compliance program is rooted in our Core Values. We earn our customers’ trust by aiming to make everything we do reliable and accurate. We execute with the highest level of quality, integrity, and sound governance.

Employee well-being

Our employees deliver success for Lam, and in return, we deliver the resources they need to thrive. We provide competitive benefits that foster professional and personal growth and well-being.

Responsibility

We approach our supply chain with the same focus on human rights, the environment, and diversity that we apply to our own business—and we work to hold our suppliers to these same standards.

Inclusive culture

Our goal is to foster a diverse and equitable culture where every person feels valued, included, and empowered to achieve their full potential.

Net zero future

To contribute to a more sustainable world, we have established goals to operate on 100 percent renewable electricity by 2030 and become net zero by 2050.

Sustainable operations

We are making progress toward our 2025 sustainable operations goals in energy savings, water conservation, waste diversion, and greenhouse gas emissions reduction.

Efficient products

We continually innovate to provide customers with sustainable solutions, like the Sense.i product family, which delivers energy reductions and uses less raw materials in its vertical, space-saving design.

Strong communities

We invest in our communities to build a better world for generations to come

External engagements

Through academic and industry engagement, we align the global semiconductor technology community to accelerate innovation.

Strategic pillars and material ESG topics

Our ESG strategy consists of six pillars that reflect areas where we can make the most meaningful environmental, social, and economic impact. We identified these areas—known as material ESG topics²—by engaging key internal and external stakeholders in an in-depth ESG materiality assessment.

Business and
governance
Products and
customers
Sustainable
operations
Our workplace
Responsible supply
chain
Our communities

Community

•Collaborating & volunteering
•Investing in philanthropic causes
•Participating in conferences and forums

Customers

•Connecting through our Global Customer Operations & Customer Support Business Group
•Participating in industry conferences
•Conducting regular business review meetings

Employees

•Sponsoring & supporting our employee resource groups
•Conducting meetings & surveys
•Discussing/fostering performance & development

Industry organizations

•Collaborating as an active member
•Sponsoring & participating in conferences

Policymakers

•Direct engagement through our Global Government Affairs group
•Trade organization participation such as the National Association of Manufacturers, SEMI, and the Semiconductor Industry
Association

Stockholders

•Annual meeting of stockholders
•Participation in conferences and forums
•Quarterly earnings conference calls
•Regular calls and in-person meetings

Suppliers

•Annual ESG supplier surveys
•Annual Supplier Day (with Excellence Awards)
•Monthly supplier scorecard reviews
•Regular Supplier Town Halls
•Strategic business reviews
as needed

Among our most impactful tools for stakeholder engagement are our in-depth ESG materiality² assessments, which we conduct every three to five years or more frequently if there’s a notable shift in our industry or business. During this process, we gather insights from a diverse group of internal and external stakeholders, which guide and affirm Lam’s ESG approach. We conducted our latest assessment in 2022 using a double materiality methodology, in line with guidance from the Sustainable Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI).

Through surveys and interactive interviews, participants assessed ESG topics based on their importance to stakeholders and potential impacts both to and from Lam. We also integrated results from an ESG materiality employee survey to further incorporate our employees’ perspectives. The results were reviewed by both executive management and the Board.

Based on the results, we identified the following topics as being most impactful and strategically important to Lam’s ESG program: climate strategy and emissions management, supplier engagement and assessment, employee fulfillment and retention, product stewardship, inclusion and diversity, supplier environmental performance, and leadership accountability.


Material topic	Business importance	Impacts	Strategies to address
Material topicClimate strategy and emissions management Product stewardship	Business importanceThis topic is relevant throughout our value chain. We face potential operational impacts as climate change continues to worsen, and potential regulatory and/or reputational impacts related to our emissions. We also expect customers may have an increasing need for emissions reduction solutions that will enable them to meet their own climate targets.	ImpactsOur solutions enable technological advances that are contributing to a low-carbon economy. Our operations, supply chain, and products we make result in greenhouse gas emissions for Lam and our customers. We also face potential climate-related physical and transition risks that could have impacts on our business.	Strategies to addressShort- and long-term climate goals Investment in energy efficiency and renewable electricity Engagement with customers and suppliers to address Scope 3 emissions
Material topicSupplier engagement and assessment Supplier environmental performance	Business importanceTo achieve our climate goals and address potential human rights risk in our supply chain, we must regularly engage and assess our suppliers.	ImpactsLam can work to influence our suppliers to increase corporate responsibility practices that improve their own operations, reduce the risk associated with our supply chain, and support our own ESG-related goals.	Strategies to addressSBTi supplier engagement goal Regular supplier assessments utilizing Responsible Business Alliance tools Webinars, forums, and other activities to inform and educate suppliers
Material topicEmployee fulfillment and retention Inclusion and diversity	Business importanceAttracting and retaining employees is of utmost importance for Lam to achieve our short- and long-term business goals in a highly competitive employment market.	ImpactsLam can positively impact the community via job creation. We also face potential risk in not recruiting and retaining talent in a highly competitive employment market.	Strategies to addressBi-annual employee satisfaction surveys Competitive compensation and benefits Inclusion programs and training Employee training and development programs
Material topicLeadership accountability	Business importanceTo promote business and ESG progress and ensure alignment in our efforts, effective leadership, oversight, and accountability are key.	ImpactsEngaging Lam leadership in ESG allows us to integrate these topics into business decision-making and ensure we are prioritizing these topics across the business and meeting our goals.	Strategies to addressThe Board of Directors has oversight of ESG Board committees have oversight of specific ESG topics Lam’s ESG Executive Steering Committee guides strategy and drives accountability Our executive compensation program is tied to certain aspects of Lam’s ESG goals

Contributing to the United Nations Sustainable
Development Goals (UN SDGs)

We recognize the value of the United Nations’ 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). These goals play an important role in building a more equitable, inclusive, and sustainable future. We have identified the following SDGs as being most relevant to Lam’s material ESG topics:

Through our ESG strategy, Lam is working to accelerate progress toward each of these goals. Lam is also a member of the UN Global Compact (UNGC) and we support the UNGC’s Ten Principles for labor, environment, anti-corruption, and human rights.

Learn how we govern and manage ESG at Lam

Caution regarding forward-looking statements

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 may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control 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.

For more information on our methodology, please see the About this Report page of our 2023 ESG report.
The identification of a topic or other matter as “material” for purposes of this report does not, and should not be interpreted to, mean that it is material for any other purpose, including for the purpose of our financial statements or the documents we file with the U.S. Securities and Exchange Commission.