Applied Materials Receives SBTi Validation of its Science-based Scope 1, 2 and 3 Emissions Reductions Targets

Rhea-AI Summary

Applied Materials, Inc. (AMAT) has received validation from the Science Based Targets initiative (SBTi) for its science-based Scope 1, 2 and 3 emissions reduction targets. The company has set a 1.5°C-aligned target, the most ambitious designation available through the SBTi process, reflecting its commitment to minimizing its carbon footprint. Applied Materials aims to reduce absolute scope 1 and 2 GHG emissions by 50% by FY2030, increase active annual sourcing of renewable electricity to 100% by FY2030, and reduce scope 3 GHG emissions from use of sold products by 55% per million USD of value added by FY2030. The company will collaborate closely with its customers, suppliers, and industry partners to achieve these targets as outlined in its Net Zero 2040 Playbook.

Positive

• Applied Materials, Inc. has set ambitious science-based emissions reduction targets, reflecting its commitment to environmental sustainability.
• The company's commitment to reducing absolute scope 1 and 2 GHG emissions by 50% by FY2030 is a positive step towards environmental responsibility.
• Applied Materials' collaboration with customers, suppliers, and industry partners to achieve emissions reduction targets demonstrates a proactive approach to sustainability.

Negative

• None.

The validation marks a significant step towards Applied's Net Zero 2040 Playbook - a collaborative approach to reducing the semiconductor industry's carbon emissions

SANTA CLARA, CA / ACCESSWIRE / December 7, 2023 / Applied Materials, Inc. announced that its science-based Scope 1, 2 and 3 emissions reduction targets have received validation from the Science Based Targets initiative (SBTi). By setting a 1.5°C-aligned target, currently the most ambitious designation available through the SBTi process, Applied is aligning its emissions reduction program to the latest climate science, validated by a third party, and will report its progress annually.

"Semiconductors are the foundation of technology advancements that are transforming the global economy and can improve peoples' lives in so many ways. As demand for semiconductors increases, we must grow responsibly by collaborating broadly to reduce the industry's environmental impact," said Gary Dickerson, President and CEO of Applied Materials. "SBTi's validation of our emissions reduction targets reflects Applied Materials' commitment to minimize our own carbon footprint and to work closely with our suppliers and customers to help them achieve their climate goals."

Applied's Scope 1 and Scope 2 greenhouse gas emissions are those produced directly by the company and by the energy it purchases. Its Scope 3 emissions, which make up more than 99 percent of Applied's carbon footprint, consist of the upstream emissions from the company's supply chain and the downstream emissions from the use of its products by customers. Following are Applied's near-term science-based targets that have received SBTi validation:

• Applied Materials, Inc. commits to reduce absolute scope 1 and 2 GHG emissions 50% by FY2030 from a FY2019 base year.
• Applied Materials, Inc. also commits to increase active annual sourcing of renewable electricity from 36% in FY2019 to 100% by FY2030.
• Applied Materials, Inc. further commits to reduce scope 3 GHG emissions from use of sold products 55% per million USD of value added by FY2030 from a FY2019 base year.

In order to achieve its ambitious emissions reduction targets, particularly Scope 3, Applied will collaborate closely with its customers, suppliers and industry partners, as outlined in the company's Net Zero 2040 Playbook unveiled earlier this year. Areas of focus include:

• Furthering Applied's "3x30" program, which defines goals for improving the energy efficiency and reducing the chemical impacts of its semiconductor manufacturing equipment
• Engaging and supporting customers to transition to clean energy to power their chip manufacturing facilities where Applied's equipment is used
• Supporting grid decarbonization efforts in key markets through advocacy and industry initiatives

In July, Applied joined with Intel as the inaugural corporate sponsors of Schneider Electric's Catalyze program, which aims to accelerate access to renewable energy across the global semiconductor value chain. Applied is also a founder and Governing Council member of the Semiconductor Climate Consortium, a global, ecosystem-wide effort to accelerate the semiconductor industry's greenhouse gas-reduction efforts.

Applied Materials has been reporting on social responsibility and environmental matters since 2005. The company's latest Sustainability Report and Annex reflect activities and results through the end of fiscal year 2022. To access the full reports and learn more about Applied's environmental actions as well as the company's efforts to advance its culture of inclusion and human rights initiatives, please visit the Reports and Policies page of our website.

Forward-Looking Statements and Reporting Uncertainties

This release contains forward-looking statements, including our sustainability strategies and targets and other statements that are not historical facts. These statements, and their underlying assumptions and projections, are subject to risks and uncertainties, and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: our and the industry's ability to achieve sustainability strategies and goals; failure to realize the anticipated benefits of planned investments and technology innovations related to sustainability; the level of demand for semiconductors and our products; customers' technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; market acceptance of existing and newly developed products; and other risks and uncertainties included in the "Risk Factors" section of our SEC filings, including our recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management's current estimates, projections and assumptions, and we assume no obligation to update them.

Non-financial information is subject to measurement uncertainties resulting from limitations inherent in the nature and methods used for determining such data. The selection of different but acceptable measurement techniques can result in materially different measurements.

About Applied Materials

Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com.

Contact:

Ricky Gradwohl (editorial/media) 408.235.4676
Michael Sullivan (financial community) 408.986.7977

View additional multimedia and more ESG storytelling from Applied Materials on 3blmedia.com.

Contact Info:
Spokesperson: Applied Materials
Website: https://www.3blmedia.com/profiles/applied-materials
Email: info@3blmedia.com

SOURCE: Applied Materials

View source version on accesswire.com:
https://www.accesswire.com/814309/applied-materials-receives-sbti-validation-of-its-science-based-scope-1-2-and-3-emissions-reductions-targets

FAQ

What are Applied Materials, Inc.'s (AMAT) science-based emissions reduction targets?

Applied Materials, Inc. aims to reduce absolute scope 1 and 2 GHG emissions by 50% by FY2030, increase active annual sourcing of renewable electricity to 100% by FY2030, and reduce scope 3 GHG emissions from use of sold products by 55% per million USD of value added by FY2030.

What is the significance of the SBTi validation for Applied Materials, Inc. (AMAT)?

The SBTi validation reflects the company's commitment to minimizing its carbon footprint and aligning its emissions reduction program to the latest climate science.

How will Applied Materials, Inc. achieve its ambitious emissions reduction targets?

Applied Materials, Inc. will collaborate closely with its customers, suppliers, and industry partners as outlined in its Net Zero 2040 Playbook to achieve its emissions reduction targets.

What are the areas of focus for Applied Materials, Inc. in achieving its emissions reduction targets?

Areas of focus include furthering the '3x30' program, engaging and supporting customers to transition to clean energy, and supporting grid decarbonization efforts in key markets.