Applied Materials successfully reduced its carbon emissions in 2022, demonstrating strong performance in its ESG activities.

Applied Materials announced on the 11th that it recently released a sustainability report detailing its environmental, social, and governance (ESG) programs and performance in 2022.

This report focuses on the impact of Applied Materials' ESG activities across its own organization, suppliers, and customers in the global electronics ecosystem.

“Applied Materials is leading the way in semiconductor technology, which plays an increasingly important role in our lives,” said Gary Dickerson, Applied Materials chairman and CEO. “As we deliver new, market-changing innovations, we work closely with our suppliers and customers to minimize our environmental impact by reducing product resource consumption and carbon emissions. We also strive to build an inclusive culture where everyone has a voice and equal opportunity.”

The semiconductor market is projected to nearly double to $1 trillion over the next decade, driven by the rise of AI and the proliferation of smart, connected devices. As the semiconductor manufacturing ecosystem embarks on a growth trajectory, collaborative efforts to reduce carbon emissions are essential.

Applied Materials successfully reduced its carbon emissions in 2022, following its success in 2021. It achieved 100% renewable electricity use in the U.S. and 69% globally. As a result, both Scope 1 (direct carbon emissions) and Scope 2 (indirect carbon emissions) carbon emissions decreased by 3% compared to 2019. During the same period, Applied Energy consumption increased by approximately 13%, demonstrating progress in decoupling emissions growth from business growth.

Recognizing the need to redouble its efforts going forward, Applied Materials has submitted reduction targets for Scopes 1, 2, and 3 (all carbon emissions from its entire value chain) to the Science-Based Targets initiative (SBTi). The new target is to reduce Scope 3 Category 11 (product use) emissions from new semiconductor products by 55% per wafer by 2030 compared to 2019 levels.

Applied Materials is collaborating with key customers and participating in industry alliances to accelerate demand for renewable power and accelerate the transition to a low-carbon future. Applied Materials is a founding member and board member of the Semiconductor Climate Consortium. It is also a member of the European Semiconductor Institute (IMEC)'s Sustainable Semiconductor Technologies and Systems (SSTS) program, RE100, and the Clean Energy Purchasing Association (CEBA).

Applied is committed to fostering an inclusive culture. At the heart of these efforts is the belief that attracting a workforce with diverse perspectives, backgrounds, and experiences is essential to delivering world-class innovation. Last year, Applied implemented and achieved initiatives to promote diversity, equity, and inclusion (DEI) best practices across the company. Furthermore, the company set 2030 goals to increase the percentage of women globally and the percentage of underrepresented minorities (URMs) in its U.S. organization.

Applied Materials has been publishing reports on social responsibility and environmental issues since 2005. Applied Materials' most recent Sustainability Report and appendix reflect its activities and achievements for fiscal year 2022. The full report, along with details on Applied Materials' environmental activities, inclusive culture, and human rights efforts, can be found on the Applied Materials website.