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A Collaborative Path to Net Zero
Advances in AI and IoT create unprecedented demand on the semiconductor industry, which is expected to double in size this decade. In the same period, our industry is projected to quadruple its greenhouse gas emissions. This is a challenge no one company can solve alone.
For Applied, 99% of our carbon emissions are generated upstream in our supply chain and downstream through customers’ use of our semiconductor systems products. To achieve our 2040 aspiration to decarbonize in line with the 1.5°C pathway as defined by the Paris Agreement, we must collaborate on solutions with our customers and partners.
That’s the basis of the Net Zero 2040 Playbook™—a clear plan to work together to transform the foundation of technology and accelerate a global clean energy mix.
Accelerating Grid Decarbonization
Nearly 70% of our Scope 3 emissions are linked to the energy used to power our products. Advanced fabs consume a significant amount of electricity, so where that power comes from is important. As a business community, we have tremendous influence—via combined buying power—to help advance global grid decarbonization.
Innovating with Customers
Our biggest opportunity to accelerate progress toward net zero is for our customers to set and achieve their own science-based net zero goals. We innovate alongside customers to achieve emissions savings and energy reductions, supporting those that have set net zero goals and those that have not yet developed a net zero strategy.
Improving Product Efficiency
About 80% of our Scope 3 emissions come from our customers’ use of our products. To achieve our own goals and support our customers in achieving theirs on the net zero pathway, we are working to improve the sustainability of our systems, while offering products and services that help customers reduce their own emissions.
Transforming Our Supply Chain
Decarbonizing the semiconductor supply chain is essential not just for Applied and our customers, but for the entire industry. With a 10-year roadmap for strengthening our ESG supply chain—called SuCCESS2030—and a new collaborative engineering center in India focused on critical supply chain technologies for equipment, we aim to help our customers reduce emissions while accelerating development of energy-efficient semiconductor equipment sub-systems and components.
Net Zero Journey
Net Zero Progress Reporting
In line with recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), we monitor current and emerging climate-related risks on an annual basis. We will use the following mechanisms to report transparently on our performance: