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Goals and Progress

Product Responsibility (3x30)
Supply Chain (SuCCESS2030)

Goals

  • Reduce equivalent energy consumption for semiconductor products by 30% by 2030
     
  • Reduce chemical consumption for semiconductor products by 30% by 2030
  • Reduce tool footprint per production-unit ratio for semiconductor products by 30% by 2030

Progress

  • Set energy consumption baseline for semiconductor products (2019 basis) and completed key energy use models
  • Established chemical impact metric and completed key chemical impact models
  • Completed key models for tool footprint to production rate ratios

Goals

  • Reduce supply chain carbon emissions by moving from airfreight to intermodal shipping, with interim emissions reduction target of 15% by 2024
     
  • Transition the supply chain to recyclable packaging,* with a target of 80% recyclability by end of 2023
  • Eliminate 100% of phosphate-based pre-treatment of metal surfaces by 2024
  • Increase the percentage of spend with, and representation of, women- and minority-owned businesses, by 2024
  • Comply with Responsible Business Alliance Code of Conduct and Applied Materials' Standards of Business Conduct

* In our 2019 Sustainability Report, we erroneously committed to a goal of transitioning to recycled content packaging, rather than recyclable content packaging. While we use recycled content in packaging when it meets performance specifications, it is infeasible for all applications.

Progress

  • Conducted pilot tests to demonstrate the feasibility of intermodal shipping; our progress was slowed by the unprecedented demand for semiconductor products in 2020
  • Achieved nearly 60% recyclable packaging in 2020
     
  • Conducting pilot trials and evaluating results
     
  • On track to increase global diverse supplier spend by 2% year-over-year
     
  • Developed supply chain ESG risk assessment model; conducted supplier training and outreach and initiated supplier audits
     
 

Product Responsibility

Applied focuses on designing long-lasting, reusable and recyclable products to minimize the use of natural resources and enable our customers to be more sustainable in their operations. We use innovative modeling tools to pinpoint sustainability improvements for new and legacy systems and implement comprehensive policies, procedures, and programs to ensure our products are safe to use and comply with applicable laws and standards.

Featured Stories

3 X 30

Our 3x30 goals aim to reduce high energy and chemical impacts in the semiconductor manufacturing industry through designed efficiencies in new and existing products.

DESIGN FOR SUSTAINABILITY

Through our Design for Sustainability Center of Excellence, we are designing long-lasting, and reusable or recyclable products to minimize the use of natural resources and help our customers boost sustainability in their own manufacturing operations.

FLEXIBLE PACKAGING

Leveraging our expertise with roll-to-roll vacuum coating systems, Applied is helping customers develop new flexible solutions to increase the recyclability of food packaging.

 

Supply Chain Responsibility

Applied creates complex products containing thousands of parts sourced from across a broad supply chain. We are committed to working with suppliers who share our principles regarding ethical business practices and human rights. We drive this commitment through a 10-year roadmap we call Supply Chain Certification for Environmental and Social Sustainability, or SuCCESS2030.

CA Transparency in Supply Chains Act 
Applied Materials Responsible Minerals Sourcing Policy 
Conflict Minerals Report 
Declarable Substances List 
 

SuCCESS2030 - Supply Chain Certification for Environmental and Social Sustainability

SuCCESS2030 strengthens our Environmental, Social and Governance (ESG) supply chain strategy, building on our foundation of supporting ethical labor practices, environmentally responsible operations, responsible minerals sourcing, and other programs promoting adherence to industry standards and international human rights standards.

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Responsible Minerals Sourcing

Applied Materials is committed to the responsible sourcing of materials used in our products. Our Responsible Minerals Sourcing Policy guides our direct suppliers' sourcing of tin, tantalum, tungsten, or gold (3TG) minerals. To ensure the efficacy of our policy, we utilize the Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process as well as independent third-party audits.

Conflict Minerals Report
Applied Materials Responsible Minerals Sourcing Policy
 
 

Supplier Assesments/Monitoring

Applied Materials employs a metrics-based approach to assessing supply chain ESG risks and reflects these assessments in our supplier scorecards. Through our holistic SuCCESS2030 initiative, we work closely with our suppliers to ensure they have the resources and tools needed to close compliance gaps and thrive.