KLA Earns Third-Party Validation of Near-term, Science-based GHG Emissions Targets and Releases Annual Global Impact Report

Rhea-AI Summary

KLA (NASDAQ: KLAC) has achieved a significant milestone in its sustainability efforts. The Science Based Targets initiative (SBTi) has approved KLA's near-term targets to reduce greenhouse gas (GHG) emissions by 2030. These targets include:

1. Reducing Scope 1 and 2 GHG emissions by 50% from a 2021 baseline
2. Using 100% renewable electricity across global operations
3. Decreasing Scope 3 emissions from sold products by 52% per billion transistors inspected, measured, or processed

Alongside this achievement, KLA has released its annual Global Impact Report for 2023, detailing the company's performance against ESG goals. The report covers initiatives related to talent, corporate governance, community engagement, and leadership.

Positive

• SBTi approval of KLA's near-term greenhouse gas emissions reduction targets
• Commitment to reduce Scope 1 and 2 GHG emissions by 50% by 2030
• Goal to use 100% renewable electricity across global operations by 2030
• Target to decrease Scope 3 emissions from sold products by 52% per billion transistors by 2030

Negative

• None.

Insights

Environmental Sustainability Expert

KLA's commitment to science-based GHG emissions reduction targets is a significant step towards sustainability in the semiconductor industry. The SBTi validation adds credibility to their goals, particularly the 50% reduction in Scope 1 and 2 emissions and the 52% decrease in Scope 3 emissions per billion transistors by 2030. This approach aligns with the growing trend of tech companies addressing their environmental impact.

The focus on Scope 3 emissions is particularly noteworthy, as it extends responsibility to the entire value chain. By setting efficiency metrics for their products' use by customers, KLA is indirectly influencing the industry's overall carbon footprint. This strategy could potentially create a competitive advantage for KLA, as customers increasingly prioritize suppliers with strong environmental credentials.

Semiconductor Industry Analyst

KLA's environmental initiatives reflect a broader trend in the semiconductor industry towards sustainability. The company's unique approach of measuring Scope 3 emissions per billion transistors processed demonstrates a deep understanding of the industry's technological progress. This metric cleverly aligns environmental goals with the industry's ongoing pursuit of miniaturization and efficiency.

The commitment to 100% renewable electricity by 2030 is ambitious but increasingly necessary in an energy-intensive industry. These initiatives could potentially lead to increased operational efficiency and cost savings in the long term, benefiting both KLA and its customers. However, the impact on short-term financials and product pricing remains to be seen, which investors should monitor closely.

MILPITAS, Calif., Aug. 14, 2024 /PRNewswire/ -- KLA Corporation (NASDAQ: KLAC), a leading equipment and services company for the semiconductor industry, today announced that its near-term targets to reduce greenhouse gas (GHG) emissions by 2030 have been approved by the Science Based Targets initiative (SBTi), capping a two-year effort by KLA's product teams who modeled and measured efficiency metrics to reach this point.

In collaboration with customers and suppliers, in 2022 KLA first announced its commitment to reduce Scope 1 and 2 GHG emissions 50% by 2030 from a 2021 baseline. In addition, at that time the company announced a goal to use 100% renewable electricity across global operations by 2030. The company also began to model efficiency metrics and product roadmaps in order to set a goal for Scope 3 emissions reduction.

After applying these methodologies, the company committed to decreasing Scope 3 emissions from the use of sold products by 52% per billion transistors inspected, measured or processed by customers operating KLA products at their manufacturing sites by 2030 from a 2021 baseline. SBTi has validated KLA's near-term, science-based targets.

"Our intimate customer collaboration gives KLA unique insights into the challenges facing the industry, and this extends to how we think about measuring ourselves and our collective impact on the environment," said Ahmad Khan, president, Semiconductor Process Control, Electronics, Packaging and Components, and KLA Instruments. "The SBTi acceptance of KLA's proposed science-based targets is exciting for us, and we believe it also helps establish a clear benchmark for others in our industry so that we might accelerate our work toward reduced emissions and better performance."

In parallel, KLA has released its annual Global Impact Report for 2023, which provides stakeholder groups with a more detailed look at the company's overall performance against stated ESG goals over the last calendar year. In addition to a summary of the work supporting SBTi targets, the Global Impact Report includes updates on initiatives related to talent, corporate governance, community engagement and leadership. More information about KLA's progress and continued commitments can be found at KLA.com.

"In much the same way we approach problem-solving with our customers, our Scope 3 goal is powered by the advances in technology to increase our efficiency, building on KLA's 48-year heritage of offering leading solutions that can improve product yield and reduce waste across the semiconductor industry," said John McLaughlin, global ESG leader, KLA. "With our near-term targets validated by SBTi, we have a clear metric to guide our sustainability journey, and we look forward to continuing to provide customers with solutions that help them meet their climate goals."

About KLA:
KLA Corporation ("KLA") develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging and printed circuit boards. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Investors and others should note that KLA announces material financial information including SEC filings, press releases, public earnings calls and conference webcasts using an investor relations website (ir.kla.com). Additional information may be found at: www.kla.com.

Note Regarding Forward-Looking Statements:
Certain statements in this press release contain forward-looking statements. You can identify these and other forward-looking statements by the use of words such as "will," "expects," "plans," "seeks," "commits," "target," "goal," "pledge" or the negative of such terms, or other comparable terminology. Such statements may include, but are not limited to, statements pertaining to: the performance, impact, and benefits of our products and technologies; our strategies; our priorities, goals, and objectives; and other predictions and estimates, including our Scope 1, 2 and 3 GHG emissions goals and our renewable electricity goals. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all forward-looking statements. Actual results and actual events may differ materially from those projected in such statements due to various factors, including but not limited to: our ability to achieve the various environmental, social and corporate governance plans, goals and commitments set forth in this report and unexpected delays, difficulties, and expenses in executing against such plans, goals and commitments; and impacts of climate change or of any actions, by various parties, taken to mitigate or adapt to climate change.

Additionally, certain of the standards and metrics used, and the expectations and assumptions they are based on, have been subject to certain internal and third-party verification procedures. However, certain disclosures may be based on assumptions or estimates due to inherent measurement uncertainties. Standards and metrics used, including any underlying data used in preparing such metrics, continue to evolve and are based on expectations and assumptions believed to be reasonable at the time of preparation, but should not be considered guarantees. We expect methodologies, including regarding the calculation of greenhouse gas emissions and associated reductions, to continue to evolve and we cannot guarantee that our approach will align with the preferences of any particular stakeholder. Moreover, our disclosures based on any standards may change due to revisions in framework requirements, availability of information, changes in our business or applicable governmental policies, or other factors, some of which may be beyond our control. We cannot guarantee that our statements or underlying methodologies may align with the expectations of any particular stakeholder. We also refer you to those factors discussed in "Risk Factors" included in documents that we file from time to time with the SEC, including KLA's Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by all these factors. KLA Corporation assumes no obligation to, and does not currently intend to, update these forward-looking statements. You should not place undue reliance on any forward-looking statement. We do not have, and expressly disclaim, any obligation to update or revise any forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

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SOURCE KLA Corporation

FAQ

What are KLA's (KLAC) greenhouse gas emissions reduction targets for 2030?

KLA aims to reduce Scope 1 and 2 GHG emissions by 50%, use 100% renewable electricity across global operations, and decrease Scope 3 emissions from sold products by 52% per billion transistors inspected, measured, or processed by 2030 from a 2021 baseline.

Has KLA (KLAC) received validation for its emissions reduction targets?

Yes, KLA's near-term targets to reduce greenhouse gas emissions by 2030 have been approved and validated by the Science Based Targets initiative (SBTi).

What does KLA's (KLAC) 2023 Global Impact Report cover?

KLA's 2023 Global Impact Report provides details on the company's performance against ESG goals, including updates on initiatives related to talent, corporate governance, community engagement, and leadership.

How does KLA (KLAC) plan to achieve its Scope 3 emissions reduction goal?

KLA plans to achieve its Scope 3 emissions reduction goal through advances in technology to increase efficiency, building on its 48-year heritage of offering solutions that improve product yield and reduce waste across the semiconductor industry.