Lam Research: 100% renewable energy by 2030, zero carbon emissions by 2050

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Lam Research Sets Goal to Power Its Operations with 100% Renewable Energy by 2030 and Zero Carbon Emissions by 2050


Company identifies goals and achievements in seventh annual Environmental, Social and Governance Report


SHANGHAI—Lam Research Inc. today released its annual Environmental, Social, and Governance (ESG) Report, detailing the company’s progress in reducing its environmental impact, creating a healthy and safe workplace, advancing inclusion and diversity, and actively giving back to and expanding its community outreach.


“The way the world is responding to this pandemic has taught us a lot about how to drive global transformation and unleash the best in humanity as we pursue our shared purpose,” said Tim Archer, President and CEO of Lam Research. “I am incredibly proud of our employees for working hard to meet the needs of our customers and respond to communities in need during the most challenging times. In that spirit, I am pleased to announce our goals outlined in our ESG report: 100 percent renewable energy by 2030 and net zero carbon emissions by 2050 to contribute to a more sustainable world.”


The company is actively taking environmental measures in its daily work, covering all aspects from operations to product design. In 2020, Lam Research Group made progress in achieving its 2025 sustainable operation goals, covering energy conservation, water conservation, reducing water waste, and reducing greenhouse gas emissions, including a 25% reduction in Scope 1 and Scope 2 greenhouse gas emissions compared to 2019, achieving energy savings of 12 million kWh, conducting waste surveys at applicable factories, achieving zero waste to landfill, and reducing water use by 17 million gallons in water-scarce areas.


The recently released report provides an in-depth review of Lam Research’s ESG goals and strategies and achievements in 2020. Key highlights include:


COVID-19 Relief and Recovery: As part of the company’s $25 million commitment to support global COVID-19 relief and recovery efforts, Lam Research has donated $7 million to help communities where its employees live and work. Funds are being provided to local communities to address their needs, including food security, emergency shelter, personal protective equipment to local hospitals, and long-term recovery planning. This also includes a 2:1 match of employee donations for COVID-19 relief programs. We have supported more than 200 organizations in 2020 and are committed to continuing our activities in 2021.


Workplace Health and Safety: In response to the pandemic, Lam Research has introduced a series of measures to ensure the health and safety of its employees. The company's incident management team has implemented administrative, engineering, and environmental control measures in each office to prevent the spread of the pandemic. In 2020, Lam Research's global recordable incident rate was 64% lower than the industry average.


Inclusion and Diversity: Inclusion and Diversity (I&D) is a strategic focus area for Lam Research, and the company is incorporating I&D into employee activities, including employee training, interactions, and company policies. In the past year, 98% of employees participated in online training on micro-inequalities to promote a more inclusive culture. Lam Research continues to connect more than 1,100 employees through 8 employee resource groups, and maintains ongoing collaboration with industry partners and leading organizations in the field of I&D.


Launching environmentally responsible products: Innovations in RF power and control technology in the Sense.i® family of products not only improve product performance, but also increase production efficiency, helping customers reduce RF power by 10-20% per etched wafer. Based on new designs and advanced product production methods, each Sense.i device can reduce the use of 15,000 pounds of raw materials for aluminum, which means that resources consumed in the initial production of unnecessary aluminum plates and 1.5 million pounds of recycling per year can be reduced. In collaboration with ASML and the Belgian Microelectronics Research Center (imec), Lam Research has released a breakthrough dry film photoresist technology for EUV patterning. Compared with traditional processes, this technology uses 5 to 10 times less chemicals and 2 times less energy to achieve the same lithography effect, bringing significant cost savings and more sustainable solutions to chip manufacturers.


Extending Equipment Lifecycles: Many of the technological advances Lam introduces in its latest products can be upgraded through its Customer Support Group (CSBG), providing customers with a cost-effective option to upgrade the performance and expand the functionality of existing equipment. In addition, CSBG offers refurbished previous generation equipment for applications that do not require the most advanced wafer processing capabilities, thus avoiding the environmental impact of producing new equipment.


Lam Research’s spare parts portfolio enables the reuse of high-value spare parts through a variety of re-cleaning, repair, refurbishment, and re-coating services. Re-cleaning services extend the life cycle of spare parts and reduce material consumption by approximately $400 million per year. Re-use of spare parts through repair and refurbishment services reduces material consumption by approximately $150 million per year.


Lam Research also announced last week the closing of a new $1.5 billion sustainability-linked credit facility, underscoring the importance of the company’s ESG goals. During the term of the credit facility, Lam Research will receive pricing adjustments if the company performs above or below annual targets for energy savings and ensuring high standards for employee safety.


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