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Working to decarbonize our value chain
as we invest in a renewable energy future.
We believe our industry has both the responsibility and a tremendous opportunity to lead the way to a more sustainable future through collaboration and innovation, as outlined in our Net Zero 2040 Playbook™. And we are committed to leading by example.
We are working to reduce our greenhouse gas emissions in accordance with the Paris Agreement, and our Scope 1, Scope 2 and Scope 3 emissions reduction targets have been validated by the Science Based Targets initiative.
Applied is making significant investments to accelerate clean energy adoption as we aim to reach 100% renewable energy for our electricity use by 2030. We participate in industry collaborations with our customers and others to advance grid decarbonization globally.
Applied employees across the globe help advance our ESG strategy through local impact programs, initiatives and community outreach.
Net Zero 2040 Playbook
Ninety-nine percent of our carbon emissions are generated upstream and downstream in our value chain. The path to net zero is dependent upon customer and supply chain collaboration. The Net Zero 2040 Playbook is a clear strategy to reach our aspirations, together.
Renewable Energy
We purchased 7% more renewable energy in fiscal 2023, adding new renewable projects in the U.S., China and Taiwan. We installed our largest on-site renewable generation system, a 5.6 megawatt (DC) solar array comprised of over 10,000 state-of-the-art solar modules covering about 75% of the Austin Logistics Service Center. This project marks one of the largest rooftop solar arrays in Central Texas.
Science-based Targets
In 2023, the Science Based Targets initiative classified Applied’s Scope 1, 2 and 3 emissions reduction target ambitions as in line with the 1.5°C trajectory, which is currently the most ambitious designation available through the SBTi process.
Goals and Progress
Goals |
Progress* |
|
|---|---|---|
|
100% of electricity at Applied globally |
70% of electricity at Applied globally, |
Goal validated by SBTi |
|
50% reduction in Scope 1 and Scope 2 (market-based) |
Scope 1 and Scope 2 (market-based) emissions |
Goal validated by SBTi |
|
55% reduction per million USD of value |
8% decrease per million USD gross profit |
Goal validated by SBTi |
*Cumulative through fiscal 2023 unless otherwise noted
**The target addresses just the direct electricity portion of Category 11 emissions per SBTi requirements
***Category 11 emissions do not include emissions from Applied’s Display business (which represented 5% of total net sales in FY2023) nor from refurbished systems
Water Management
Applied’s operations are not high-volume water consumers relative to the broader semiconductor industry, yet we strive to optimize our water use across our facilities. In fiscal 2023, our absolute water withdrawal decreased 12%. We report our water impacts annually to CDP, receiving a B score in 2023.
Waste Management
We are committed to minimizing waste across our global locations and logistics operations, with a special focus on eliminating non-recyclable, landfill-bound waste. In 2023, we decreased our total waste 2% year over year, and increased our landfill/incineration diversion rate to 73%, up 1% over 2022.