KLA's 2021 Global Impact Report Highlights New Climate Goals

Rhea-AI Summary

KLA Corporation (NASDAQ: KLAC) has announced ambitious targets to reduce its Scope 1 and 2 emissions by 50% by 2030 and achieve net zero emissions by 2050. These goals align with the Science Based Targets Initiative and reflect KLA's commitment to sustainable growth amid global climate concerns. The company also reported a total of $3.9 million in grants for community support and COVID-19 relief, alongside efforts to enhance inclusion and diversity. KLA aims to utilize 100% renewable electricity by 2030, furthering its focus on environmental responsibility.

Positive

• Set a target to reduce Scope 1 and 2 emissions by 50% by 2030.
• Aims for net zero Scope 1 and 2 emissions by 2050.
• Invested $3.9 million in community grants and COVID-19 relief.

Negative

• Potential risks associated with achieving ambitious emission reduction targets.

• KLA sets SBTi-informed target to reduce its Scope 1 and 2 emissions by 50% by 2030 and achieve net zero Scope 1 and 2 emissions by 2050
• KLA continues community investment; strengthens inclusion & diversity efforts

MILPITAS, Calif., Aug. 25, 2022 /PRNewswire/ -- KLA Corporation (NASDAQ: KLAC) today released its 2021 Global Impact Report, highlighting its most recent environmental, social and governance (ESG) progress and goals. Its purpose is to promote the sustainable growth of the business and inform KLA's stakeholders about the company's approach to managing and measuring its ESG performance.

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"In 2021, we remained steadfast in our commitment to fulfill our mission of being positive stewards and living our values," commented Rick Wallace, president and chief executive officer of KLA Corporation. "Our 2021 Global Impact Report is a testament to KLA's dedication to continuous innovation and a summary of the environmental, social and governance strides we have made in just one year."

REDUCING KLA'S ENVIRONMENTAL FOOTPRINT

Following the UN Intergovernmental Panel on Climate Change (IPCC) recent warnings around the catastrophic impact of global warming, KLA recognized the urgent call to action for businesses to do their part to reduce global emissions. Therefore, the company set a target to reduce its Scope 1 and 2 emissions by 50% by 2030 from its 2021 (third-party verified) baseline and achieve net zero Scope 1 and 2 emissions by 2050. These scope 1 and 2 emissions targets were set in reference to the Science Based Targets Initiative's (SBTi) Corporate Net-Zero Standard Criteria. In addition, KLA will evaluate and announce progress toward the development of Scope 3 emissions reduction goals by the end of 2023.

These developments follow a previously announced goal to use 100% renewable electricity across KLA's global operations by 2030.

KLA INVESTS IN THE COMMUNITY, STRENGTHENS INCLUSION & DIVERSITY EFFORTS

Through the KLA Foundation grants program, KLA invests in local organizations to create upstream solutions for sustainable change. In 2021, the KLA Foundation made a total of $3.9 million in grants and donated $550,000 to support COVID-19 relief in India, building upon its prior $2 million contribution toward COVID-19 relief efforts. Through the KLA Social Equity Fund established in 2020 in partnership with the American Heart Association, $530,000 in grant funding was made to five nonprofits in the South Bay/Silicon Valley and Metro Detroit areas.

The report also highlights the company's efforts to strengthen its engagement around Inclusion and Diversity (I&D) to address unconscious bias, non-discrimination and anti-harassment throughout the organization.

The development of the 2021 Global Impact Report was guided by stakeholder expectations and took into consideration recommended disclosures from the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) standards for the semiconductor industry and the Task Force on Climate-Related Financial Disclosures (TCFD).

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, printed circuit boards and flat panel displays. 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:

Statements in this press release, other than historical facts, including statements regarding KLA's sustainability and diversity goals, strategies, targets, commitments, projects, objectives, plans and programs, are forward-looking statements and subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: KLA's ability to achieve the commitments, goals and targets referred to in this press release and unexpected delays, difficulties, and expenses in executing against such commitments, goals and targets. Additionally, while our emissions inventory has been verified by a third-party, this verification is to a limited level of assurance and does not necessarily account for all potential uncertainties in measurement or calculation methodology. For more information, please see the verification opinion declaration included in the appendices to our 2021 Global Impact Report. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this press release, please refer to KLA's Annual Report on Form 10-K for the year ended June 30, 2022, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). KLA assumes no obligation to, and does not currently intend to, update these forward-looking statements.

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SOURCE KLA Corporation

FAQ

What emissions reduction target has KLA set for 2030?

KLA has set a target to reduce its Scope 1 and 2 emissions by 50% by 2030.

What is KLA's climate goal for 2050?

KLA aims to achieve net zero Scope 1 and 2 emissions by 2050.

How much did KLA invest in community grants in 2021?

KLA invested a total of $3.9 million in community grants in 2021.

When does KLA plan to use 100% renewable electricity?

KLA aims to use 100% renewable electricity across its global operations by 2030.

What is the focus of KLA's 2021 Global Impact Report?

The report highlights KLA's ESG progress and goals, focusing on sustainability and community investment.