Looking to address the carbon intensity of the semiconductor industry, Applied Material launched its Net Zero 2040 Playbook to reduce the sector's emissions. The company's 2023 Sustainability Report covers its progress here along with more than 10 further environmental, social and governance (ESG) goals and initiatives.

Applied expects data hungry applications and artificial intelligence (AI) to double semiconductor industry revenue by 2030, but it could also quadruple the sector's carbon footprint over the same period. The Net Zero 2040 Playbook aims to address this by demonstrating a plan towards net zero for the industry.

The 2023 Sustainability Report outlines 14 Applied Materials goals and targets, covering both environmental and social objectives, most with a 2030 deadline, and the company's progress on each of them. These include 100% of electricity used from renewable sources, 50% reduction in Scope 1 and 2 emissions and 55% reduction in Scope 3 per million US dollar of value added, 30% reduction of equivalent energy and chemical reduction per-wafer pass for semiconductor products, all by 2030 with a 2019 baseline.

"Reporting plays an enormous role in being transparent and driving performance, which is incredibly important to stakeholders like employees, customers and investors," said Chris Librie, senior director of ESG at Applied Materials.

On the social side, the report includes $1 billion spend with women and minority-owned businesses by 2027, greater than 25% women representation at Applied globally and more than 25% underrepresented minorities (URM) representation in the US, both by 2030.

The report was prepared in accordance with the Global Reporting Initiative, while disclosures following the Sustainability Accounting Standards Board (SASB) and a Taskforce on Climate-related Financial Disclosures (TCFD) index is used to discuss Applied's climate risk assessment. The report also shows where alignment and contribution is made to the UN's Sustainable Development Goals (SDGs).

"A robust and thorough approach to targets and reporting, combined with a proactive commitment to addressing the risks posed by the data industry's growth," commented one Sustainable Company Awards judge.