Make Possible® a Better Future Sustainability Report 2020 were taken pre-pandemic. Note: Any images thatdepictpeopleunmasked ornotsociallydistant invests up to $50M year per globally. Learn more into reality. Applied Ventures is stage agnostic and with startups to transform disruptive possibilities Applied Materials that invests in and collaborates Applied Ventures, LLC, is the venture capital arm of solar panels,plusprocessors offlexible substrates. emitting diode(OLED) displays, otherelectronic devices, semiconductor chips,liquidcrystal (LCD) and organic light- industries. Ourcustomers includemanufacturers of and software to thesemiconductor, display, andrelated Applied provides manufacturing equipment,services, Our Products andServices Future reality. We are driven to Better Make Possible a into possibilities to transform customers atomic levels and on an industrial scale enables world. in expertise Our modifying materials at every new chip and advanced display in the engineering solutions to used produce virtually Applied Materials is the leader in materials About AppliedMaterials for everyone. for flexible substrates. oriented devices, andequipment for processing and otherdisplay technologies andcustomer- Making theproducts to manufacture LCDs, OLEDs, Display andAdjacent Markets operation performance andproductivity. automation software to improve equipmentandfab Providing consulting, spare services, parts, and Applied GlobalServices to fabricate semiconductor chips. Designing andmanufacturing thesystems used Semiconductor Systems

Sustainability Report 2020 2 FY20 Company Overview Highlights Headquartered in ~14,300 Silicon Valley California’s patents

(>110 locations,19countries) employees worldwide ~24,000 billion revenue $17.2

billion R&Dinvestment AMAT stock listing on Nasdaq $2.2

Awards andRecognition Leadership 2020 Compass Award for CSR Business Alliance Responsible IT 2020 Best Places to Work in Computerworld 100 Insider Pro and Companies Daily 2020 BestESG Investor’s Business Companies 2021 Sustainable Barron’s 100Most Companies 2021 World’s MostAdmired Top 100Fortune

LGBTQ Equality 2021 Best Places to Work for Campaign Foundation Human Rights Energy Leader 100 2020 Environment + Training Top 100 Training Magazine 2021 in 2020 Best Place to Work inIT Improvement (SCQI) Award Continuous Quality Intel’s 2020 Supplier

Sustainability Report 2020 3 Message from OurCEO commitment to ourgoals to: stepped upby demonstrating resilience, persistence, andastrong year, AppliedMaterials andouremployees around theworld unprecedented challenges for allofus.Inthismostunconventional geopolitical unrest, andthe risingimpactofclimate change created In 2020, theconvergence ofaglobalpandemic, socialinequities, business responsibly andhave apositive socialimpact. roadmap—1X–100X–10,000X—with aggressive goals to grow our aligned ourcompany around abold,aspirational 10-year sustainability Possible aBetter Future for everyone. To thisvision,we’ve support tremendous responsibility. This is the drive behindourvisionto Make help shapethefuture, and we recognize thisprivilege comes with display intheworld. That places usinaprivileged positionto innovations are usedto produce every virtually chipandadvanced As theleaderinmaterials engineering solutions, AppliedMaterials amazing new digitaltools. manufacturing—almost everything you canimaginewillbenefitfrom our lives. Healthcare, research, retail, transportation, education, impact ontheglobaleconomy andtouch almostevery aspectof Over thenext decade,digitaltransformation willhave aprofound Future for everyone. resilient, andmore committed thanever to Make Possible aBetter At Appliedwe steps forward took important to emerge stronger, more events of2020 challenged allofusto rethink how we work andlive. passionate, innovative people,inthisyear’s sustainability report. The You’ll learnmuchmore abouttheseinitiatives, andmeetsomeofour ■ ■ ■ ■ President andChief Executive Officer Gary E.Dickerson

Sustainability—SuCCESS2030. for SupplyChainCertification for Environmental andSocial semiconductor manufacturing tools, anda10-year roadmap drive ourambitious3x30goals to improve theefficiencyofour Innovate for progress, establishingaCenter ofExcellence to globally by 2030. and windprojects aswe transition to 100%renewable power first fullvalue-chain carbonfootprint, andadvancing oursolar Protect ourplanet,settingscience-based targets, completing our delivered virtually. through comprehensive leadership andemployee training and theirfamilies, whileadvancing ourCulture ofInclusion Invest inpeople,prioritizingthehealthandsafety ofourworkers the mostvulnerable populations inourcommunities. firstsupporting responders, emergency-focused nonprofits, and to theurgent needsofourcustomers andsuppliers, whilealso Lead withpurpose,translating ourvalues into actionto respond

Sustainability Report 2020 4 To advance our1X–100X–10,000X strategy, we: impact goals, ofeachsection,thathold usaccountable outlined at thestart for progress. Our 1X–100X–10,000X framework isunderpinned by aggressive environmental andsocial toused advance sustainability on aglobal scale ( of our customers and suppliers ( impact and how we run our business ( We take aholistic approach to sustainability that considers our direct Our Sustainability Vision andStrategy Lead withpurpose to innovation, decision-makingand through avalues-based approach community action. Read more

100X 1X ), how and can technology our be ), our industry’s impact and that Inclusion andfoster adiverse and to buildadeep-rooted Culture of Invest inpeople skilled talentpipeline. 10,000X Read more ).

by respecting theEarth’s finite resources while enablinginfinite growth inour Protect ourplanet business andthedataeconomy. Read more Innovate for progress to empower transformative innovation that improves technology inharmony with resources. Read more

Sustainability Report 2020 5 Progress Innovate for Planet Protect our People Invest in Purpose Lead with Make Possib Our innovationscanhelpempower amoresustainable andequitable world BUSINESS FOR OUR 1X le aBetterFuture 100X INDUSTRY FOR THE 10,000X WORLD FOR THE

Sustainability Report 2020 6 Our COVID-19 Response 7

The COVID-19 pandemic has affected nearly Remote Productivity COVID Impacts on every person, community, business, and Sustainability economy in the world since early 2020. ■ Provided reimbursement of expenses and ergonomic 2020 Report Sustainability support for working from home Designated as an essential business, we executed a Many of the results reflected in this year’s Sustainability comprehensive response across all regions in which ■ Offered hardware and connectivity resources Report are influenced by the events of 2020. The pandemic we operate, implementing strict safety protocols in our response shifted some of our workforce to work at home, factories, labs, and logistics centers so we could continue ■ Upgraded virtual productivity tools and corporate travel was curtailed, at the same time we operating throughout the pandemic. We prioritized the experienced increased customer demand impacting our on- protection and trust of our employees, customers, suppliers, Community Support site manufacturing operations and associated carbon footprint. partners, and community as we drove key initiatives to Other initiatives, such as environmental health and safety strengthen Applied for the long term. self-assessments and on-site supplier audits, were more Provided PPE and blood analysis systems to ■ challenging to execute amid pandemic shutdowns. We have medical facilities Employee Health and Safety noted these potential impacts in the data where appropriate.

Sent emergency support to food banks and crisis- Required remote work where possible ■ ■ response nonprofits As the world begins to recover from the pandemic, Applied is committed to Provided enhanced screenings, testing, social distancing, ■ Donated cases of hand sanitizer for isolated seniors leveraging essential 2020 learnings and and personal protective equipment (PPE) for ■ and people who are unhoused on-site employees innovative solutions to accelerate progress against our goals in 2021 and beyond. ■ Offered virtual physician and wellness appointments Employee Volunteering through company health centers Applied has a multi-phase plan to return to working on-site, ■ Printed 3D face shields and touchless door handles which takes into consideration factors such as Applied’s for hospitals business needs, local government regulations, community case trends, and recommendations from public health ■ Created open-source designs for medical gear officials. The plan involves multiple phases that gradually allow additional workers to return on-site while practicing ■ Sewed masks for nonprofit volunteers social distancing and other safety measures. Community Impact Data andIPSecurity Public Policy Corporate Governance Purpose with Lead customers, partners, and neighbors. and partners, customers, Futurea Better for our employees, and every action we take to Make Possible valuesOur guide every decision we make

Sustainability Report 2020 8 Community Impact Data andIPSecurity Public Policy Corporate Governance factored itinto executive compensation. against our2030 ESG goals into ourCompany Scorecard and Standards ofBusiness Conduct, andintegrated progress increased diversity onourBoard ofDirectors, refreshed our Applied continues to drive ourleadership agenda. We delivering funding,PPE,andotheressential donations. the immediate humanitarianneedsinourcommunities, and theAppliedMaterials Foundation we responded to supply chaindisruptions.Together withouremployees to keep criticalfacilities operating andminimize global We worked alongsidegovernments andtrade associations response across all the regions where we operate. crisis, business continuity our teams directed acomprehensive disruptions and to the uncertainty of the COVID-19response neighboring workers, communities.In and our customers, immediateOur is priority to protect the health of safety and strategies andactions. Materials fullyleanedinto ourcore values to guideour In ayear filledwithmultipleurgent challenges, Applied which we and our communities aspire. We with act intention to create the future to Key Highlights Against Hunger Against millionRaised $4 for Fight Capitol U.S. insurrection 2021, at 6, January review following policy formal committee Paused political action sites business for information security at 45 Achieved ISO 27001 certification giving in Q1 2021 for

Materials Foundation initiative Foundation Materials Applied Girl™, an Generation Impacted 10,000 girls through Delivered experience learning virtual Week Integrity Expanded Foundation grants corporate contributions and $14,920,039 Responsibility and Responsibility into a worldwide into a in direct direct in

Sustainability Report 2020 9 Community Impact Data andIPSecurity Public Policy Corporate Governance CEO andhisexecutive team. goals impactscompensation for executives, includingour progress isreviewed quarterly. Progress against theESG 2030 ESG goals isincludedin ourCorporate Scorecard, and the CEO and his Executive Team. Work toward ourcorporate ofthecompany’sa part annualstrategic review process with and culture, inalignmentwithourcorporate strategy. ESG is (ESG) strategy integrates sustainability into ouroperations Our company-wide Environmental, Social,andGovernance and Management ESG Oversight corporate governance structures andpolicies. See theReport Annex for additionalinformation onApplied’s governance structure. values and overseen by astrong corporate reflecting aculture guided by our core and fairness is one of our greatest assets, Applied Materials’ reputation for honesty Corporate Governance

* Alsoincludesfunctionscovering HumanResources, Culture ofInclusion, Community Affairs, GlobalInformation Services andotherfunctions by invitation. ESG Oversight Structure ESG OversightStructure Nominating Committee(CGNC) EHS Corporate Governanceand Supply Chain ESG –focuseddeliveryteams ESG LeadershipCouncil* Product Board ofDirectors Legal Relations Investor Executive Team CEO Director ESG ■ ■ ■ ■ ESG Leadership Council:

sustainability reports Reviews annual updates withprogressquarterly Reports to theCGNC updates) review (includesprogress Team viaannualstrategic Reports to theExecutive functional areas delivery teams inall Represents ESG-focused 10 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance waste, health,andsafety. covering emissions, energy, water, updates onoverall ESG strategy, as well asmore in-depthannual Director ofEHS and Sustainability, and Sustainability updates from our Committee (CGNC) receives EHS Governance andNominating basis,ourCorporate quarterly a On and Safety (EHS) Environmental Health issegmented byReporting focus on ourESG efforts area: All AppliedMaterials corporate governance documentsare publicly available here. Our2021 Proxy Statement isavailable here.

regular basis. the company’s ESG strategy ona Reporting. The CGNC alsoreviews Corporate Sustainability, and updates from our Director ofESG, receives in-person andwritten basis,theCGNCOn aquarterly and Governance (ESG) Environmental, Social,

minerals report filedwiththeSEC. reviews ourannualconflict chain issues. The Audit Committee The Board reviews material supply Conflict Minerals Supply Chainand

Inclusion practices andinitiatives. programs, includingourCulture of human capitalmanagement oversees corporate culture and Compensation Committee (HRCC) The Board’s HumanResources and Our People andWorkplace audited onanannualbasis. board andisindependently Foundation, whichhasitsown is ledby theApplied Materials engagement andgrantmaking Much ofourcommunity Community Engagement

Sustainability Report 2020 11 Community Impact Data andIPSecurity Public Policy Corporate Governance mechanisms for reporting ethicsconcerns. and governance structures. Click here for information onour See theReport Annex for additionaldetailsaboutourethics policies concerns andquestions. and to serve astrusted localcontacts employees can approach with and mandatory training completion throughout theorganization, to promote ethicsandcompliance, intellectual property protection, also positionedCompliance Champions throughout ourbusiness units tables, andourannualResponsibility and Integrity Week. Appliedhas campaigns, employee ethics surveys, campusfairs, information Employee engagement effortsincludeethicstraining andawareness program development initiatives, andkey trends andindicators. Audit Committee receives reports quarterly covering investigations, and investigating potential integrity violationsby executive officers. The including mechanismsfor reporting potential violationsoflaw orpolicy responsible for overseeing overall program designandimplementation, engagement from seniormanagement. The Board’s Audit Committee is a To continually reinforce integrity across ourculture, Appliedmaintains our executives andmanagers to leadby example. professional dutieswithresponsibility andintegrity, andwe expect of ourworkforce plays inthiscommitment by apart conducting their to ourcustomers,partner suppliers, andshareholders. Eachmember Applied iscommitted to beingagood corporate citizen andatrusted Ethics andCompliance Global EthicsandCompliance Program withstrong leadership and program maturity assessments to helpinform ourprogram roadmap. of ourthird-party duediligence procedures, andhave completed business partners.We are intheprocess ofautomating key elements approvals regarding andtravel meals,entertainment, gifts, with of-interest disclosures, corporate donationapproval requests, and our Standards, we maintainaglobaldashboard for tracking conflict- To enablereal-time dataanalyticsandinsightson compliance with we dobusiness. right-sized response to today’s dynamic risk environment, everywhere tying themcloserto ourcore values andemphasizingrelevance and system ofassociated policies,procedures, controls, andtrainings, In 2020 we began updatingourStandards alongwithourwhole bribery, andcorruption. reporting processes, includinginkey areas suchasconflicts ofinterest, and provide comprehensive guidance aboutrisks, laws, policies,and values, empower employees to speakupwithoutfear of retaliation, are designedto promote trustin management’s commitment to our colleagues, communities, and otherstakeholders. The Standards highest ethicalstandards in ourinteractions withcustomers, suppliers, of trusted partners,andprovide guidance designedto ensure the our values, setexpectations for ourglobalworkforce andnetwork Materials’ Standards ofBusiness ConductApplied communicate Standards ofBusiness Conduct Our Core Values performance world class To deliver and integrity responsibility To actwith a winningteam To work as valued partner To bethemost

12 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance and SupplyChainteams. and Data Governance, IPProtection, Information Security, Quality, EHS,ESG, presenters from across ourEthicsandCompliance, Culture ofInclusion,Privacy programming attracted over viewers 5,200 andincludedcross-functional veteran, plusengaging videosandquizzes. Over thecourse oftheweek, the to them,apodcastontheevolution ofcompliance withatechnology industry Human Resources Officer discussed what responsibility and integrity mean included afireside chatinwhichApplied’s Chief Legal Officer andChief practices ourcore supporting value ofResponsibility andIntegrity. Highlights leadership-hosted events thatraised awareness ofthemes,resources, andbest across Applied. Conducted dueto thepandemic,week virtually featured designed to connect thedotsandinstillaholisticview ofresponsibility ourannualglobalEthicsweek into anew eventexpanded we 2021, early In 2021 Responsibility and Integrity Week responsible minerals sourcing. management systems, andethics,including related to labor, healthandsafety, environment, Conduct. The RBACode provides standards Responsible Business Alliance (RBA) Code of comply withbothourown Standards andthe requiring ourvendors andsuppliers to for socialresponsibility inoursupplychain, Materials setsclearexpectations Applied Alliance Code ofConduct Responsible Business compliance. In2020, thoseincluded: training inspecificareas ofethicsand Employees alsohave access to ongoing each year. training andcertification to theStandards non-retaliation. Employees renew their selection andtreatment, speaking up, and anti-corruption, insidertrading, gifts, supplier of interest, intellectual property protection, course thatcovers ourpoliciesonconflicts Business Conduct training andcertification employees are assigned aStandards of around ethicsandcompliance, newly hired To ouremployee’s support obligations Ethics andCompliance Training ■ ■ ■ decision-making refreshers andassist inethical campaigns, thatprovide process Micro-learning andawareness orientation compliance program duringnew-hire Introduction to Applied’s ethicsand across ourAPAC region Live, localized anti-corruption training

13 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance had timelyaccess. vaccination requirements to assure ourworkers worked withstates and localitiesto understand vaccines became available, Government Affairs continuity inourglobalsupplychain.Later, as suppliers intheirhomecountries to ensure secure essential worker designationfor critical worked withU.S.government officials to for ouremployees. At thesametime,they states to secure essential worker designation associations andgovernment agencies inthese Government Affairs function worked withtrade Massachusetts, Montana,andTexas. Our of ourmanufacturing sites inCalifornia, centered onassuring thecontinued operation In theearlymonthsofpandemic,efforts COVID-19 andinternational trade. these efforts centered onissues related to advocacy efforts.In2020, themajority of meetings, hearings,andtrade association customers, andourendusers, typically via challenges criticalto ourcompany, our to inform policymakers aboutissues and ineffortsApplied Materials participates Policy Engagement Public Policy generation technologies. incentives to develop andadvance next- working onpolicies,partnerships,and R&D and inclusion,includingLGBTQ rights; and economy; advocating for fairness, diversity, valuable role ofimmigrants intheU.S. for immigration reform thatembraces the and sustainability. These includeadvocating regulation, R&D, humanresources andlabor, tax, international competition, technology policy changes inareas suchascorporate pressing issues, we continue to advance policy interests. Inadditionto theyear’s in globalmarkets while achieving U.S. allow thecompany to remain competitive Affairs advocated for policiesthat would Engaging theU.S.government, Government the strained U.S.-Chinatrade relationship. focus to international trade, particularly Government Affairs devoted significant Throughout 2020 andinto 2021, political process. encourage ouremployee’s inthe participation Republican candidates for theU.S.Senate, to townvirtual hallswithTexas’s Democratic and In 2020, Appliedsponsored well-received 14 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance can befound here. Our U.S.Trade andBusiness Associations membership list agencies asappropriate. Act Database. We fileperiodicreports withfederal andstate reports onfederal lobbying through theLobbying Disclosure programming activities,orsimilarcosts. AppliedMaterials This total doesnotincludeconference orevent sponsorships, by theassociations asnon-deductiblelobbying expenditures. association membership dues,16%ofwhichwas specified In 2020, Appliedpaidapproximately $535,000 intrade that we endorse theentirety ofthatgroup’s policypositions. and communities. Ourmembership inagroup doesnotimply strategy andtheneedsofourcompany, industry, employees, associations representing issues thatalignwithourcorporate Applied Materials belongsto various business andtrade Business andTrade Associations parties, candidates, andrelatedparties, institutionsby AppliedMaterials Total value offinancial andin-kindcontributions to political Political Spending See theReport Annex for additionaldetailsonApplied’s political donationpolicies,mechanisms,and compliance practices. 2021, AMPAC pausedallpoliticalgiving inQ12021. During 2020, politicalcontributions madeby AMPAC totaled $53,500. Following theinsurrection attheU.S.Capitol onJanuary6, Contributions are basedsolelyoncorporate objectives, withoutregard for committee members’ private politicalpreferences. Our committees orpartycommittees issues ofstrategic supporting importanceto thecompany, consistent withalllegal requirements. The Political Contributions parties, candidates, andrelatedparties, institutionsby AMPAC Total value offinancial andin-kindcontributions to political Applied Materials, Inc.Political Action Committee (AMPAC) contributes to federal candidates andpoliticalaction State Contributions Committee oversees corporate politicalspendingto advance thoseissues atthestate andlocallevels.

$53,500 CY2020 $0 $84,000 CY2019 $0 $47,000 $10,000 CY2018 15 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance Data andIPSecurity practices to stay aheadofthreats. Amongotherefforts,we: assessments andcontinuously update ourmitigation We conduct 24/7 monitoring andweekly vulnerability framework andthecapacity for rapid detection andresponse. a matterwhen,we ofifto maintainbotharobust defense Recognizing thatcyber-attacks longago moved from being our globalstakeholders. sponsored actors, we desire to beasafe datachoice for all of business disruptionattacks, andincursions by state- vulnerabilities, readily available hackingtools, therise strategic priorities.Inathreat landscapemarked by growing Applied Materials considers datasecurity oneofourtop ■ ■ ■ ■ Company policies security laws, regulations, industrypractice, andour security threats to helpcomply withapplicable data Provide robust training for ouremployees onrecognizing Maintain enhanced emailsecurity controls penetration testing, andphishingexercises Employ third for parties monitoring ofexternal threats, escalation protocols Maintain response procedures and systems andp BitSight secur enhance customer restoring business b of ourbusiness achieved ISO 270 Framework assessment andcurrent Applied Materia w and control enhance p security controls Our eff ■ ■ reaches andran rocess, processe ith allsaleso effectiveness ofinternal controls Engage third-party auditors to helpassure the peer benchmarking and outsideexpertsfor information exchange and Partner withindustrygroups, government agencies, orts extendorts across i rograms align ty scores amo sites, assur f Appliedsemicond ls hasunderg embeddedinthesu 01 certification so s for assessing continuity, andcontinuous assessme t mware incident rust, we provide m ent ofhigh-impa oursupplychainvia i ng ourdatasecur withglobalbes ng ourindustr one aNISTCybersecurity for informati sup ly uc s, maintains one v tor systems. ply chaincyber- pplier onboardin a playbook for irus-free certi ct suppliers. y p t ity management practices. eers. on security at enhanced We’ve also of t f To i ca he g tions nt best 4 5 and continues to devote substantialresources to it. incidents. AppliedMaterials takes datasecurity very seriously security programs, policies,controls, key risks, andnotable to theBoard’squarterly Audit Committee onourdataandIP Our ChiefInformation Security Officer atleast reports 16 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance increases intheFoundation’s matching grant program. boosted theirindividualcharitablecontributions, which we amplified by large protective equipment(PPE)andotheressentials for frontline workers and total. At thesametime,ouremployees donated theirtimeto create personal benefiting 310recipients inninecountries—a 38%increase over our2019 million indirect corporate contributions andFoundation grants in2020, In total, AppliedMaterials andtheFoundation awarded more than$14 settings, asourpartners soughtcreative ways to engage withlocalcommunities. enthusiastically approved other programs’ transition from in-person to virtual transform theirfacilities into COVID testing orfood distributionsites. We general operating — support give organizations flexibility, we converted many program-related grants into additional COVID-specific funding available for community service agencies. To listening to theirideasfor servingtheircommunities duringthecrisis,andmaking its worldwide spread, we pivoted quickly, engaging withoutsideorganizations, Foundation’s signature girlsempowerment program. ButasCOVID-19 began Culture, andtheEnvironment, aswell astheGeneration Girl nonprofits working inour focus areas of Education, Civic Engagement, and Arts In atypical year, AppliedMaterials andtheAppliedMaterials Foundation fund never more true than in 2020. building and leveraging trusted and that was partnerships, Helping the communities where we live and work is about Community Impact for instance, andCulture helpingArts grantees TM initiative, the Breakdown ofContributions by Category Community Impact. Contributions includebothFoundation andCompany detailed intheSocialData giving,whichisfurther sectionoftheAnnex under $14,920,039 Grand Total Category label Girls Empowerment Environment Employee Matching Gift Education Disaster Response Civic Development andCulture Arts $1,072,135 $586,461 3.90% $3,729,244 $2,893,768 19.40% $2,746,766 $2,640,392 $1,251,273 Amount 25.00% 18.40% 17.70% 8.40% 7.20% % 17 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance seniors; andprovided agrant to Médecins Sans Frontières sanitizers to homeless shelters andprograms servingisolated U.S., Europe, andChina;shipped casesofindividualhand analysis systems to frontline medicalpersonnel inthe urgent healthneeds,we delivered face masks andblood those mostimpacted by theCOVID-19 pandemic.To meet Foundation, andour24,000 employees stepped upto help Around theworld, AppliedMaterials, theAppliedMaterials A Culture ofGiving COVID-19 Response: sites inAustin, TX, Kalispell,MT, andSingapore, enterprising financial resources to therelief effort.At ourmanufacturing employees continued donatingtheirtime, talent,and Though largely dispersed to theirhomeoffices, Applied’s protective equipment. gained access to nutritiousmealsandpersonal helped ensure disadvantaged children andtheirfamilies to foodsupport banks across theU.S.,andinKorea we the globe.Inface ofgrowing need,we increased our (Doctors Without Borders) relief to support around efforts

medical gear. design teams created open-source designsfor low-cost sewed masks for MealsonWheelsvolunteers. InIndia,our organizations intheircommunities. InAustin, employees touchless doorhandlesfor hospitalsandotherresponding engineers used3Dprinters to create face shieldsand March and December 2020. match from to $3,000 $5,000 between increased its our annual employee giving preferred charities, the Foundation to COVID-19 relief and other efforts To support our employees in contributing 18 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance employees andwhat’s neededinourcommunities. and purpose,aligningwho we are withwhatmatters to our for thoseinneed.Alltheseeffortsreflect Applied’s values in IndiaandTaiwan raised fundsto provide access to food distribution intheircommunities. Meanwhile, employees volunteered withlocalorganizations to package food for in different countries. InIsrael andChina,employees the year, aligned withcultural often andseasonal holidays Global Fight Against Hunger effortscontinued throughout dramatically increased demand. across theU.S. andCanadaasthey worked to manage funding provided for vitalsupport 50nonprofit organizations campaign raised $4million, a70% increase over 2019. This match to helpfood banks respond to COVID impacts), the Applied Materials Foundation (plus anadditional$500,000 Hunger. With donationsmatched dollar-for-dollar by the all-employee telethon for meetinginto avirtual Fight Against November andDecember 2020, we transformed ouryear-end Americacampaignin North ofourmonth-longvirtual As part world more reliant onfood aidthanever before. related economic downturn peoplearound of2020 left the locations andcommunities—a timelymove, asthepandemic- our effortsto address food insecurity inmany ofourglobal In recent years, AppliedMaterials hasexpanded andaligned Fight Against Hunger Cho Wang lives AppliedMaterials’ visionto Make Possible aBetter Future for everyone. Manufacturing Engineer Cho Wang Employee spotlight appointed president. appointed position was and Cho aleadership for his hand raised make engaging, inclusive, active, and more the group to opportunity an Employee Seeing Group. Resource chapter of the Young Applied an Professionals Network, Cho got involved atApplied, months with the Austin few to his In first rapid-prototype can solve challenges. in of activities he his engaging life, where all aspects Cho art-of-the-possible this to applies same mindset is what drew to me the industry Applied,” Cho. said of drive this help and to able part being be impossible, think is anything like doesn’t who For someone me, makes does—it possible. things the equipment do—what we What technology, the“In development is endless.

and supported a local animal shelter. alocal supported and their families; and teens for health services mental and social nongovernmental organization local supporting blankets donated toyouth LifeWorks, homelessness; a to end help efforts supported also group The program. through the Foundation’sto $24,000 donation match drive, which through afood was doubled over $12,000 community.local year, This raised YPN the Austin-based the includingways supporting to inspire engagement, new creative found and Cho leaders the other YPN and gatherings, halted the in-person pandemic When events. participation monthly in its quadrupled had the group Cho’sWithin few under the months first leadership, 19 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance Generation Girl female vice president, theAppliedMaterials Foundation’s empowerment andsaw theelectionof theUnited States’ first In ayear thatturnedaspotlightondiversity and Generation Girl impact onthe girlsthey served, with76% ofsurveyed mostly moved they virtual, continued to have aprofound low-income backgrounds. Whilespring andsummerprograms as Black,Latinx,orIndigenous and61% ofwhomcome from able to serve more than10,000 girls,61% ofwhomidentify September 2019 andAugust 2020, ourgrantees were still grantees’ programming, varying astimewent on.Between The onsetofCOVID-19 precipitated significant shifts in our equitable, andeffective. we canhelpmake ourfuture workplaces more vibrant, barriers anddevelop talentinunderrepresented communities, backgrounds. By working to break down societalandsystemic and Indigenous girlsaswell asgirlsfrom low-income serving Black/African American,Latinx/Hispanic, group, theprogram prioritizes fundingfor organizations of color remain thetech industry’s mostunderrepresented any paththey choose.Inrecognition ofthefact thatwomen gain theconfidence, to succeed skills,andopportunities in organizations throughout theUnited States to helpgirls The Generation Girl that allgirlshave theopportunityto reach theirpotential. TM initiative continued itsefforts to ensure TM initiative works withnonprofit TM TM Initiative that thecollaborations through theGeneration Girl during thistimeofinstability, with82% ofgrantees reporting convene onabimonthlybasis,proved virtually invaluable subjects. Applied’s Community ofPractice, where grantees 78% indicatingincreased interest andcompetence inSTEM respondents reporting positive levels ofself-confidence and From Fall 2020 through Spring2021, theGeneration Girl strengthened theirprograms to agreat extent. girls to semiconductor wafers andcareers in tech. sessions with girls, andleadingonlineactivitiesto introduce volunteer mentors, conductingcareer virtual exploration employees dedicatingtheirtimeandtalentsby servingas Employee volunteerism also went in2020, virtual withour service agencies to address need. connecting girls andtheircaregivers to localcommunity in community (e.g., onlinemusiclistening sessions), and justice activism, creating safespaces virtual for girlsto be by providing homeactivity kitsfocused onSTEM andsocial pandemic, grantees expanded beyond theirnormalactivities their families felt andempowered supported duringthe as in-person learningwhenpossible. To ensure girlsand after-schoolvirtual andsummerprogramming aswell that fostered learning,connection,through andsupport funding, grantees were ableto provide girls’programming six U.S.regions where Appliedmaintainsfacilities. With this providing over $1.1 millionto 35organizations located across initiative continued girls’empowerment supporting by TM initiative TM

“ is available here. A complete listof2020 Generation Girl envision themselves doingthat. Hearing us,seeingtalking about science asfemale role models helpsyoung girls System

Engineering Manager Engineering

TM initiative grantees - Idith Varon-

” 20 Sustainability Report 2020 Community Impact Data andIPSecurity Public Policy Corporate Governance support local foodsupport banks andshelters. meals. Othercommunity gardens were repurposed to could bedonated to families to supplement healthy home their schoolgardens to feature quick-growing items that the science curriculum. Backyard Growers alsoreplanted they could continue gardening experiments connected to Backyard Growers sentgrowing kitshometo students so through food andfarming. InGloucester, Massachusetts, Veggielution to connect peoplefrom diverse backgrounds pandemic, ithasquicklybecome acentral strategy for the program began asadirect response to theCOVID-19 community members experiencing food insecurity. While community farm to distribute healthy andnutritiousfood to California, Veggielution marshaled itsexpertiseasa resources to serve thelocalcommunity. InEastSanJose, andfoundvirtual new ways to leverage theirunique as they took youth educationandotheroutreach efforts $586,461 ingrants to 37 nonprofits, working withgrantees In FY2020, AppliedMaterials andtheFoundation awarded more sustainablefuture. engage communities withthenatural world andhelp builda environmentally focused efforts,includingprojects that also impacted ourability to conduct many ofourtraditional interconnectedness aspeopleandaplanet,butithas COVID-19 hasbeenaforceful reminder ofour Environmental Engagement media channel,Applied4You. photos ofthemselves wearing green onourinternal social DayEarth onApril22, we encouraged ouremployees to post the great outdoors. To celebrate the50thanniversary of upcycled crafts aswell asphotos ofthemselves enjoying worldwide sites, sharing tips for homegardening andmaking The format virtual enabled employees to engage across make theircommunities healthierandmore sustainable. discover ways to reduce theircarbonfootprint, andgenerally employees to learn abouthouseholdsustainability strategies, inApril2020,virtual educatingandinspiringApplied’s global Applied’s annual,monthlongEarthWorks campaignwent streamed from musicians’homes. Jazz presented “Live from Home,” aseriesofperformances school children inGloucester, Massachusetts, while SanJose tools andvideo instructionto provide creative programming to HavenCape AnnArt blendedtraditional makingwithdigital art demand modelsfor delivering theirprogramming to audiences. resilience andcreativity by pivoting to new streaming andon- profits. Inachallenging year, ourgrantees demonstrated performing awarding arts, millioningrants $1.3 to 62 non- culturallyto support diverse programming inthevisualand In FY2020, AppliedMaterials andtheFoundation continued Creativity drives new ideasthatcantransform theway we live. Advancing andCulture Arts families inrural China. creation ofreading rooms andthetraining ofteachers and the Library Project to improve children’s literacy through the contentvirtual to ignite studentinterest inSTEM, andfunding the Discovery Center ofIdahoinproviding interactive and of anunprecedented pandemic.Examples includesupporting access to high-quality educationgloballyeven inthemidst Materials andtheFoundation invested inefforts to increase paves theway to more promising futures. In2020, Applied Education inspires young minds,opensnew doors, and Education Access http://earthworks inspire. connect.give.

2021 21 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion People in Invest inspired to grow. to bring their whole self to work, and is knows they belong, feels empowered We foster aculture where every person 22 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion address ouremployees’ physical, mental,andemotional wellness athome. safety ofourremote workforce, we offered a range services ofvirtual to help protocols for ouressential on-site workers theproductivity andsupporting and professional wellness. Inadditionto implementing enhanced COVID-19 safety priority, and2020 brought new challenges thatimpacted bothpersonal and Protecting thehealth,safety, andwellbeing ofouremployees isalways ourtop earned usa#14spotonthe2021 Training Magazine Top 100rankings. through allemployee levels. Ourunwavering commitment to improvement inclusion training andpersonal engagement, from top executive leadership necessary andintheprocess achieving ourhighest-ever in participation training across theboard, transforming to new alternatives virtual where We doubleddown onourholisticapproach to employee development and talent andto guideourmanagers ineliminatingbiasfrom ourhiringprocess. step inthateffort, we implemented new tools to expand oursourcing ofdiverse barriers andhelpingusbecome thedestinationemployer inourindustry. Asone accomplishes many goals, includingaddressing systemic race andgender year strategic imperative to foster Culture ameaningful ofInclusion that Amid thesecomplex social challenges, we continued to implementourmulti- communities, and beyond. our system, justice criminal the racism–in systemic with anti-Asian racism forced collective a social reckoning Floyd the of murder George In thepandemic. U.S., and hit hard by the economic impacts of the COVID-19 intensified, with people and women of color disproportionately In 2020, issues of racial inequity and gender were

Goal Goals andProgress case incidentrate (TCIR) at0.46 orbelow Maintain occupational healthandsafety total of Principles by 2021 Publish aHuman RightsStatement representation inourU.S.workforce Increase underrepresented minorities’ at Appliedglobally Increase women’s representation Applied inU.S.to 21%by 2021 Increase women’s representation at Invest inPeople Progress published andisavailable onourwebsite The We metthistarge Increased to 14.2% Increased to 17.8% Increased to 20.2% Human RightsStatement hasbeen t , achievingaT CIR of 0.33 U.N. SDG 23 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion Key Highlights Summit global 2020 Culture of Inclusion virtual the in participated workers employees 1,700 program PATHWAY role-based our training 14,000 employees in participated representation increase female to Continued in U.S. workforce U.S. in and contingent and Magazine Company Ranked Top as Veteran-Friendly Inclusionand signed Applied CEO Dickerson Gary training University Global Applied completed vice presidents, and managers 100% of executive-level leaders, CEO Action Diversity for by U.S. Veterans by U.S. ™ pledge 24 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion everything we do. barriers to inclusionandoperationalizing inclusionin sets usonthepathto identifyingandeliminating systemic actions to engage leaders aschampionsfor change and Our strategy drives amulti-year roadmap, whichcontains financial performance. Materials toward greater innovation and and capabilities, are what will drive Applied we know those teams, powered by their talents help build stronger, more resilient teams. And perspectives, and experiences, knowing they belonging. We celebrate backgrounds, different Inclusion (COI) based on diversity, equity, and At Applied Materials, we value aCulture of Our Culture ofInclusion COI Strategy: Foundation andRoadmap accountability for change Define metricsandleader for leaders Make inclusionpersonal champions ofchange Engage leaders as to advancing diversity andinclusionintheworkplace. and theCatalyst CEO Championsfor Change pledge, publiclycommitting AppliedMaterials In 2020, ourCEO, GaryDickerson, signedtheCEO Action for Diversity andInclusionpledge Pledges for Change

action strategies to inclusion Leverage datato develop down barriers Change Teams to break Engage andempower Inclusion systemic barriers to inclusion Identify andbreak down barriers to inclusion Eliminate systemic

quantitative progress Measure qualitative and developing, andretaining talent finding, selecting,placing, strategies forAccelerate are inclusive Ensure talentpractices inclusion inallwe do Operationalize

25 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion that I belong. I can bring my Ican fullthat self.” Ibelong. the like way feel people welcomes they “I Imatter— are,” said. she company the “The culture Materials. appreciates about atApplied two are just of the brings many he the or she things valueand she to beyond and to thepassions person look whole aresume see ToApplied. the willingness to letemployees Karen, explore new at HR for Executive Resources the Human Partner became Karen while their authentic succeed being selves.”people April 2021, In have afuture living in aworld working and in acompany that lets anative ofKaren, Brazil now living in Texas. want all my to “I kids to me,” said personal inclusion is very and Diversity two sons. and new have awhole found calling. “I that Karen twoApplied daughters Culture it was during arecent But at of Summit Inclusion centers. Applied’s contact global teamrecently alarge supporting managing most materials and management, logistics, chain, supply around career centered her had Courter Karen For than 20 more years, Executive Partner Human Resources Karen Courter Employee spotlight

13.2%, withU.S.representation13.2%, at12.9%. representation at17.8%. Additionally women’s representation inourglobalengineering staffhasincreased to Since 2019, women’s representation inourU.S.workforce hasincreased to above 20%,withglobal continued to remain below thecompany’s target of5%orless. global), contributing to animprovement ingender diversity. Overall voluntary turnover inFY20(4.6%) We alsosaw adecrease involuntary turnover amongfemale employees between 2019 and2020 (-2.0 pp global voluntary turnover. Our2020 datashows five-year increasing trends in: commitments, anddatadisclosure. This year’s report includesexpanded dataongender representation and employees. During2020, we madesignificantprogress instrengthening ourCOI strategy andtargets, training and recruiting diverse talentanddesigningafullyactualized Culture ofInclusionto thebenefitofallour Over thepastfour years, AppliedMaterials hasfocused onstrengthening ourstrategies for retaining Growing aDiverse Workforce ■ ■ ■ ■ ■

Women inengineering(+1.8ppglobal,+2.1 ppU.S.) Black representation atthemanager level (+1.1 ppU.S.) Underrepresented minority representation atalllevels (+2.4 ppU.S.) Women’s representation attheexecutive (+0.3pp), manager (+5.1 pp), andprofessional (+2.8pp) levels Women’s representation percentage (+1.2 points(pp) ppU.S.) global,+2.2 26 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion *Underrepresented minorities Managers and SalesCareer Bands Business, Engineering, Professionals People Managers and Directors Vice Presidents Executives FY2020 U.S.Workforce Gender, Ethnicity, andRace Representation by Employee Level 2020

2016

0.3% 2.8% 5.1% Women 26.9% 12.4% 24.1% 17.5% 11.6% 11.3% Asian 4.2% 4.2% 5.4% 4.8% 44.8% 40.6% 40.5% 34.4% 29.0% 45.3% Black 0.2% 1.1% 0.1% 4.2% 0.9% 2.9% 2.7% 1.0% 3.1% Hispanic/Latinx 0.6% 1.9% 0.1% 6.4% 2.0% 5.3% 7.0% 7.2% 2.1% Other URMs* 0.5% 1.3% 0.0% 0.8% 0.8% 2.0% 0.7% 1.6% 1.1% White 5.6% 9.8% 5.0% 48.9% 50.6% 43.3% 55.6% 51.9% 61.7% 27 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion 10.8% 18.0% 14.6% 15.5% 11.4% 2016 2016 Improved GenderDiversity inEngineering Female Representation by Region 2016–2020 U.S. Women NA APAC 18.8% 14.9% 14.5% 11.6% 11.7% Global Women 2017 2017 EMEA 14.8% 15.4% 12.2% 12.2% 19.3% 2018 2018 12.4% 16.5% 15.6% 19.5% 12.7% 2019 2019 2020 2020 20.2% 12.9% 13.2% 16.7% 15.7% year-two members have beenpromoted. joined WETDPin2020. More thanhalfofWETDPalumniand nominated by theirmanagers annually. Fifty-nine new members development roundtables, andmentoring programs. Women are professionalparticipation, skilldevelopment workshops, career women employees through networking conference opportunities, offers resources aselectgroup to support ofhigh-potential U.S. technical talentatApplied.This two-year development program TDP) isfocusedthecareer onsupporting growth of female Our Women inEngineeringTalent Development Program (WE Development Program Women in EngineeringTalent 28 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion their COI educationandmission. In 2020 andearly2021, we introduced several executive-level initiatives to drive accountability ourleaders andsupport in Engaging Leaders asChampionsofChange ■ ■

achievement ofourdiversity objectives. bonuses, tying executive compensation directly to the Scorecard thatinforms determination ofexecutive commitments asanobjective ontheCorporate To reinforce accountability, we addedourdiversity Tying performance to executive compensation: challenges before tryingto fixthem. inclusion personal andlearningto understand inclusion on Issues ofRace andRacialEquity,” focused onmaking experiential learningsession titled“Leading Courageously (including executive inasix-hour team) took part experiential learning:InSeptember 2020, 27 leaders Driving accountability andinspiration through

30% peopleofcolor. grown more diverse, andnow consists of40%women and Directors. Over thepastseveral years ourBoard itselfhas Progress isshared basiswithourBoard onaquarterly of ■ ■

more inclusive leaders, partners,andchange catalysts. pragmatic strategies andbestpractices for becoming for executive staffandleadership teams thatprovides early 2021, we created acomprehensive actionguide Introducing theInclusive Leader Action Guide:In against diversity goals for eachorganization. through whichexecutive leaders cantrack progress In 2020, we introduced U.S.diversity dashboards Using dashboards to expose market availability gaps:

Top 50Employers Woman EngineerMagazine Top Veteran-Friendly Company U.S. Veterans Magazine 100%-plus overall rating, exceeds every standard Military Friendly Employer Best Places to Work for LGTBQ+ Equality Corporate Equality Index, 100%overall rating Human RightsCampaignFoundation military veteran recruitment. for oureffortsaround workforce diversity and Applied Materials isconsistently recognized Diversity Recognition Workforce

29 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion creating aninclusive culture. the uniqueroles played by bothinsiders andoutsiders in sessions designedto buildawareness ofinsiderculture and our top 400executives forintwo participation half-day launched experientialtargeting learningopportunities Virtual Inclusive Leader Summits:Inearly2021, we remove systemic barriers to inclusion. employee communities andadviseon our leaders’ effortsto ideas, andstrengthening bondsacross andwithinour 2001, ourERGs provide forums for learning, exchanging An integral oftheAppliedMaterials experience part since which represent arange ofdiverse employees withinApplied. in partnershipwithourEmployee Resource Groups (ERGs), These corporate-wide were learningopportunities presented and diverse experiences ofourworkforce. learning sessions andevents recognizing thecultural heritage events,series ofmostlyvirtual includingopt-in inclusion In 2020, AppliedMaterials employees cametogether ina 2020 InclusionHighlights

■ ■ ■ focused onthree areas: addition, we on-demandtraining launchedvirtual courses On-Demand Training for Managers andEmployees: In

best practices for facilitating inclusive meetings. virtual I Trust, andSensitivity. mindful oftheARTS ofInclusion:Appreciation, Respect, from micro-inequities to micro-affirmations, andbe to test theirautomaticparticipants assumptions, move aware they’re doingso. The training challenges certain groups ofpeoplewithout beingconsciously social stereotypes individualscaninternalize about Unconscious BiasandMicro-inequities: Explores the creating psychological safety. unconscious bias,beingaware ofmicro-messages, and performance, withanemphasis onunderstanding can take to increase inclusion,engagement, andteam The Inclusive Manager: Explainsactionsmanagers nclusive Virtual Meetings:Examines challenges and 30 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion and/or partnership. them valuable insightonracism, allyship, 92% ofrespondents saidtheevent gave racial justice issues. Inapost-talk survey, for acandidconversation abouttoday’s activist anddiversity educator JaneElliot nearly 350Appliedattendees welcomed celebration, ofour2021 virtual As part Black History Month everything they do. personal pledges to work toward inclusionin andmoreparticipated than1,500signed global employees andcontingent workers act to bringaboutchange. More than1,700 work incommunity across differences, and understanding ofunconscious bias,learnto people’s lived experiences, deepentheir challenges ourworkforce to listen to Listen, Learn, andAct campaign,which Summit served asthelaunchpadfor our Held inOctober 2020, COI ourvirtual Global Culture ofInclusionSummit

and inclusion. strategies for leaders onfacilitating diversity (HIP), workshop thisvirtual shared (WPDN), andHispanicsinPartnership Professional Development Network Employee Team (VET),Women’s Employee Network (BEN),Veterans by theSanta Clara branches ofourBlack Held inSeptember 2020 andcosponsored Lead Like anAlly LGBTQ+ rightsandworkplace challenges. U.S. andIndiato increase understanding of workshopshosted virtual and lectures inthe from ourERGs andregional sites, we also Austin, Gloucester, andIsrael. With support in Silicon Valley, aswell asatoursites in raised therainbow flagatourheadquarters LGBTQ+support rights.In2020, employees Applied Materials standsinsolidarity to Pride Month hiring biases. cultural, andmultigenerational diversity, and Month inAugust 2020, discussing gender, weekly learning sessions duringInclusion our WPDNchapter collaborated to present Southeast Asia.At AppliedMaterials India, career stages across AppliedMaterials professional stories from women atdifferent engagement seriesshowcasing inspiring month, WPDNmembers sponsored adigital To celebrate International Women’s Day WPDN AsiaPacific Events technology companies. engaged 214attendees from seven Your Success” paneldiscussion, which Instruments Women Network’s “Defining inclusion anddiversity, includingNational focused onwomen’s advancement and Network hosted andsponsored events our Women’s Professional Development Throughout theyear, various chapters of WPDN U.S.Event

■ ■ ■ ■ ■ ■ ■ ■ ■ nine ERGswith26 Employee Resource 2001, thenetwor S M i nce ourfirstERG aking anImpact Y W V P Male ER L Hispanics inP Asians inMotion Applied PRIDE (YPN). Development Network and BlackEmployee Network Achievement through Diversity eadership Encouraging ersians atApplied Materials oung Professionals Network eterans Employee Team omen’s Professional G for Equity k hasincreased artnership globalchapte s launchedin Gl G obally roups: rs. to 31 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion In 2020, we established the following targets for meeting ourdiversity goals: universities, andnonprofit partners servingmiddleandhighschoolstudents. pipeline offuture talentthrough STEM educationinitiatives withcolleges, schools withlarge BlackandHispanicstudentpopulations), andbuilding a universities withstrong engineeringandscience programs (includingU.S. technology industryandrelated fields,seekingtalented new graduates from Our diverse talentrecruiting effortsfocus onattracting candidates from the Diverse Talent Recruiting semiconductor technologies. to meeting our growing skill especially needs, in increased adding for demand industry talent, complexity that imperative was challenged by the pandemic and a total commitment to inclusion and diversity. In 2020, workforceperforming must enabled be and informed by top- a onboarding and hiring, recruiting, attracting, for in leaders the technologyAs industry, our practices Recruiting andHiring ■ ■

with aresume poolconsisting ofatleast20%female candidates. For NCG positionsin China,Taiwan, India, andIsrael, provide managers underrepresented minority candidates. managers witharesume poolconsisting ofatleast 50%female or For new college graduate (NCG) positionsintheU.S.,provide

to work where they’re most effective. candidate pools, andenablingpeople people from anywhere—expanding our models, we’re ableto recruit talented By offering more remote, flexible work Collaborate Everywhere Innovate Anywhere, 32 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion To achieve thesegoals, we pursued arange ofnew initiatives andtechnologies: ■ ■ ■ ■ beyond our operating regions. and broaden ourpotential talentpool leading usto expand oursearches efficacy ofdistance-working models, COVID-19 pandemicproved thebroad Expanded Geographical Searches: The for technical positions. female candidates whoare thenhired for employees whorefer qualified increased ourreferral bonusprogram Increased Referral Bonuses:We hiring. placement withafocus on diverse includes bestpractices intalent roles. The Talent SelectionPlaybook selecting talentfor current andfuture framework andtools for assessing and we rolled outa talentassessment Talent SelectionPlaybook: In2020, specifically for diverse candidates. platform thatallows usto search 2020, we invested inanew sourcing Diverse Talent Sourcing Platform: In diverse selections. by 4.5%over FY2019 andresulted inmore operations. GlobalNCG hiringincreased 4% increase inhiringour Asia-Pacific our manufacturing jobfamily group anda a 3%globalincrease indiverse hiringin increase indiverse hiring.Overall, we saw These initiatives andothers ledto an ■ exiting theservices. and speakwithcandidates whoare have clearance to access militarybases the U.S.military, withrecruiters who continued to actively recruit talentfrom success from thepast10years, we Military Recruiting: Buildingonour of longevity atApplied. have create Dale aculture says opportunities helped growth these opportunities.” “Applied was afast-growing company that felt like astart-up with many growth Texas paying of University atnight challenging Icould job while do and attending also Dale joined Applied nearly 26 years ago while still in college was agreat himself. “It (MERGE).Employee Equity for Group Resource Team” 2007. around ERG in Austin, TX Today, of is the the he new President Male “Green the including founding first in Employee various Groups, engages Resources transitioning for to program pipeline executive managers leadership actively and roles, is currently their new He working emerging an positionthey on atApplied. start beforeprovides jobfunctions college and with areas graduates to exposure different develop collegeDale anew rotation helped manufacturing-based that program initiatives and company programs have can he where apositive impact. to getinvolved opportunity an miss in other doesn’t he but atApplied, of abig director has as job engineering Dale Morris Director of Manufacturing Engineering Dale Morris Employee spotlight – Austin during the day to finish my undergrad engineering degree,” said Dale. said Austin degree,” during the day engineering to my finish undergrad

33 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion database, andassure optimalplacement ofnew hires: functional training, provide access to aglobalknowledge College Graduate (NCG) programs to drive in-depth,cross- throughout theyear, andwe several undertook New virtual incoming employees onschedule.Recruitment continued offers for bothnew employees andinterns, andonboarded logisticalhurdles in2020,Despite we honored allcurrent hiring creative transformative and solutions. practices, forcing to us adapt quickly with onboarding and hiring, recruiting, traditional Throughout 2020, the pandemic our upended During COVID-19 Recruiting andHiring ■ weeks ofin-depthindustrytraining. offered onboarding avirtual program thatincludedthree semiconductor technologies by training new hires, SPG Recognizing theneedto manage atalentshortage in Semiconductor Products Group (SPG) Onboarding: ■ ■

opportunities inoursupplychainoperation.opportunities offers aseriesofmultiplerotation participants Supply ChainRotation Program: This annualprogram engineering projects. on dutiesandwork onlarge, collaborative year-end completeassignment, duringwhichparticipants hands- engineering assignments andonemanufacturing engineering disciplinesaseriesofthree to four unique this two-year program offers new graduates inkey Semiconductor Equipment group inGloucester, MA, Fusion Rotation Program: Offered by ourImplant ■ resulting U.S.hires. time employees, withdiverse talentrepresenting of 71.5% number ofinterns subsequentlyjoined thecompany asfull- and roles inbothengineering andcorporate. Asignificant inclusive workplace andintroducing themto career paths the pandemic,givingstudentsexposure to ourdiverse and continued operating onaremote-work basisthroughout Americaandglobally,In North ourinternship programs also

on experience across various finance disciplines. mentoring, networking, skillsdevelopment, andhands- and Silicon Valley offices, thisprogram provides ongoing Finance Rotation Program: Offered through ourAustin

34 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion managers, andrecognition from managers. marks onrole expectation clarity, regular check-ins with overcome COVID-19 challenges, and over 80%gave positive respondents reported highconfidence inApplied’s ability to In anemployee survey we conducted inJuly2020, 92% of especially for parents ofschool-age children. and address the complexities ofmeldingwork andhomelife, work model,we introduced programs wellbeing to support To helpouremployees dispersed to avirtual, whoshifted resources theirteams. to helpthemsupport people managers withQ&Asessions, safety briefings,andother policies andprograms, ourGlobalManager Forum engaged our and wellness. To maintaincohesiveness around COVID-era safety, business continuity, andpromoting employee health up ourproactive internal communications around plansfor on-site safety protocols. To keep theminformed, we stepped our employees healthy, we improved onouralready exacting to work on-site atAppliedorcustomer locations.To keep manufacturing, lab, andcustomer-focused employees continued With ourbusiness deemedessential, themajority ofourglobal priority. top our of our employees and their families remained Throughout the COVID-19 the safety pandemic, Taking Care ofOurEmployees necessary, addingflexibility to address circumstances: particular To allouremployees, support we adjusted ourpay andbenefitsas mandatory useofpersonal protective equipment. distancing requirements, enhanced sanitationprotocols, and safety andhealthprotocols includingstrictscreenings, social our essential on-site employees, we maintainedenhanced workforce worked beginninginmid-March. virtually To protect active ourcustomers. andableto support The rest ofour minimum neededto keep ourcriticallabsandoperations Throughout 2020, we reduced on-site staffingto theessential imposed by government authorities. safe whileensuringcompliance withorders andrestrictions pandemic withmeasures to keep ourworkplaces healthy and Applied operations around theworld responded quicklyto the and Support Employee Safety, Security, ■ ■ employees now have the sameamountofsicktime. Standardized sicktime:U.S.exempt and nonexempt accommodations where possible. interim home-based work orprovided otherreasonable were paidtheirregular salariesandreassigned to come to work dueto compromising healthconditions Pay continuity policy:Employees whocould nolonger

For more detailsonApplied’s standard benefits,seehere. ■ ■ ■ ■

for any working hours usedfor vaccination appointments. employees to get theirCOVID-19 shots,we offer paidtime timeoff for Flexible vaccinations: To encourage our (ergonomic chairs, desks, etc.). productivity enhancements, andwellness needs taking into account employee needsaround technology, for theexpense ofcreating orupgrading homeoffices, Home office expenses:We compensated ouremployees our company-sponsored healthplansthrough 2021. providers, visitsare andnutritionists. Allvirtual free through from doctors, therapists, behavioral healthcoaches, fitness programs were transitioned offering to virtual, services wellness benefits to theneedsoftime,many in-person Health andwellness To support: adaptourhealth and Rethink program. tele-consultation through support theaward-winning offering expanded research resources, training, and children’s onlineeducationduringwork hours, we began suddenly hadto cope withthestress ofmanagingtheir Support for working parents: To aidparents who

35 Sustainability Report 2020 Occupational Health and Safety 36

Safety Training Rate

In FY2020, Applied Materials set and met a target that 96% of relevant 2020 Report Sustainability employees would complete safety training by year-end. Weekly safety training penetration reports, across all business units, are sent to all members of executive management as part of the weekly EHS Update Report.

Safety Targets and Performance

Our Culture of Inclusion Applied Materials maintains global programs and monitoring to promote a safety culture and safe work practices, minimize workplace risks, and Recruiting and Hiring support continuous improvement in our safety performance. We use the Taking Care of Our Employees definitions set by the U.S. Department of Labor’s Occupational Safety and Occupational Health and Safety Health Administration (OSHA) for recordable, lost-time, and restricted-day injuries. These definitions are implemented globally for data gathering and Learning and Development analysis, and we set targets and objectives both at the corporate and site level, Human Rights embedded into annual performance objectives. At the end of each year, results 6S for Manufacturing Safety are analyzed and the targets are reset for the coming year. Sort Shine To ensure safety is prioritized, many of our factories have implemented 6S, a lean manufacturing concept Sustain that empowers employees to assess and enhance functionality and safety in their work areas. After Set in order introducing 6S in 2019, injury rates fell by 35% in our Standardize semiconductor manufacturing operations. Safety 37

Health and Safety Violations

In 2020, Applied received zero notices of violation worldwide. 2020 Report Sustainability Find additional information on Applied’s Occupational Health and Safety Program here.

Work-Related Injury Rates

FY2020 FY2019 FY2018

Our Culture of Inclusion Total Case Incident Rate (TCIR) 0.33 0.43 0.52

Recruiting and Hiring Days Away, Restricted, or 0.23 0.29 0.34 Transferred (DART) Taking Care of Our Employees

Occupational Health and Safety Lost Time Severity Rate (LTSR) 3.70 3.63 5.41 Total Case Incident Learning and Development Rate (TCIR) Fatalities 0 0 0 Human Rights In FY2020, Applied set a company- wide internal target of keeping our TCIR to 0.45 or below. We met this target, achieving a TCIR of 0.33.

0.33 TCIR achieved in 2020 The main types of work-related injury accidents are strains, sprains, and fall-related incidents. TCIR is calculated as (total number of OSHA Recordable injuries and illnesses x 200,000)/total hours worked by employees. DART rate is calculated as (total number of DART incidents x 200,000)/total hours worked by employees. LTSR is calculated as (total number lost workdays x 200,000)/total hours worked by employees. Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion Learn more aboutAppliedsLearning andDevelopment program here special assignment projects. functions, comprised oftraining, mentoring/coaching, and new leadership programs inseveral regions, businesses, and role-based employee development programs androlled out objectives. At thesametime,we evolved thestructure ofour deploy new alternatives virtual to deliver onourplansand programs in2020, requiring usto quicklydevelop and than 500new hires challenged ourtraining anddevelopment The confluence ofCOVID-19 andtheonboarding ofmore COVID-19 Program Adaptations for business into the future. and dedicated workforce that will propel our employees an engaged, to motivated, support and development opportunities for our Applied Materials invests in creating growth Learning andDevelopment of ourbusinesses andregions, equippinghigh-potential business. First, we piloted aTeam Leader program inseveral development initiatives to address growing needsfrom our In 2020, Appliedalsoinvested intwo new management intrainingparticipated through thePATHWAY program. During 2020, over 14,000 employees accessed and education workshops, orreading research papers. coursework, professional accreditation orcontinuing- required andelective coursework withuniversity-level learning hours ineachfiscalyear, employees may supplement learning. To meettheir requirement ofcompleting 40 and provides role-based recommendations for self-directed development plan,andskilltopics criticalto thecompany, to browse andselectcourses related to theirjobrole, The integrated PATHWAY platform allows employees recommendations from managers. additional professional skillsbasedonpersonal interest and flexible elective courses, enablingourpeopleto explore coursework to achieve thoseneeds. PATHWAY alsooffers required inthenext phaseofthedigitalage andoffering a focus onfuture skills,identifyingcapabilitiesthatwillbe Applied achieve ouroverall goals. Inearly2021 we added customized course ofgrowing theirprofessional skillsto help Our PATHWAY program helpseachofourpeopleplota 2020 Program Highlights urgent real-time issues. channel for peoplemanager communication and training on during COVID-19. This forum hasevolved into apowerful need to keep ourpeoplemanagers informed and connected addition, we initiated aglobal Manager Forum, sparked by the goals, givingfeedback, andmanagingteam effectiveness. In employees to carryoutmanagement functionslike setting “ collaborating everywhere, and face today isdemonstrating planet andfor oneanother. the urgency to care for our The globalhealthcrisiswe innovating anywhere and the needto thinkandact differently, thevalue of

CEO, Applied Materials

- Gary Dickerson, Gary -

” 38 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion PATHWAY Vision andDevelopment and topicscriticaltothecompany related totheirjobrole,developmentplan, maps tohelpemployeessearchforcourses Focus onskilldevelopment,withcustom FY2020: SkillMapping FY2021: Skill-Based Journeys Track, Communicationetc.) Build skill-basedjourneys(e.g.,DataAnalysis FY2022: MeasureSkillProficiency in newskills Appraise andtrackemployeeproficiency

Rankings 100 Top 2021 Magazine’s Trainingin #14

39 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion For additionaldetailsandbreakd compliance isp Additional infor receiving rem o We have a98%co e managers comp 100% ofourle travel-related t o objectives and organization allowed usto meet Our successful 2020 Learning H raining capaci mployees compl ur Standardso rganization, t i nders untiltheyfulfillthei expenses by mo he move to virtua aders, executive-level vice goals for 2020. In ty p f rovided here. leted training in2020, and mation ontrainin BusinessCond by more than40% i eted role-related andaddit vot to virtual m p letion rate fo t re uct, withthe raining across l enabledusto increase our t our corporate t owns, seetheRe ourApplied g ours han $7million r new-hire training on related to ethi in 2020 while r obligation. p 96%offull-time residents, and i onal training. re G t maining 2% he lobal Services ra .

cs and port Annex. port ining red ucing

Learning Hours Trends andTotal Hours Learning Hours Total Training/ (total workforce) Total individuallearners Total individuallearners (RFT) Learners

1,436,271 FY2020 33,759 23,214 ,0,3 1,311,582 1,407,932 Y09FY2018 FY2019 20726,704 32,087 18020,930 21,850 Interns Individual contributors Manager level Executive-level directors Executive-level vice presidents Completed Training by Role FY2020 18,907 2439 1637 166 65 40 Sustainability Report 2020 Human Rights Learning andDevelopment Occupational HealthandSafety Taking Care ofOurEmployees Recruiting andHiring Our Culture ofInclusion Photo taken pre-pandemic. out enforcement mechanismsfor non-compliance. and accountability for ourpersonnel andsuppliers, and lay commitments, enumerate ourexpectations around training Code ofConduct. These policiesandstatements spelloutour and alignswiththeResponsible Business Alliance (RBA) Nations GuidingPrinciples onBusiness andHumanRights, international humanrightsstandards, includingtheUnited Supply ChainsAct. Italsoreflects common principlesinkey Policy, andourpositionontheCalifornia Transparency in of Business Conduct, ourResponsible Minerals Sourcing This statement buildsuponourcompany-wide Standards which Applied Materials published in 2021. June new wherever we dobusiness is formalized in our commitmentOur to protecting human rights Human Rights Human Rights Statement of Principles of Statement Rights Human , who have lodged good-faith reports ofpossible ethicalissues by law. OurNon-DiscriminationPolicy protects employees membership, veteran status,orany otherbasis prohibited genetic information, family care leave status,union physical disability, mentaldisability, medicalcondition, age, sex, sexual orientation,gender identity, maritalstatus, based onrace, color, nationalorigin, ancestry, religion, harassment, andretaliation. We do nottolerate harassment to providing aworkplace thatisfree ofdiscrimination, Non-Discrimination: AppliedMaterials iscommitted commitment to protecting humanrightsinoursupplychain. and policies.SeeSupplyChainResponsibility for our for additionalinformation onemployee working conditions See theOccupational HealthandSafety sectionofthisreport action, andsupplementalstate-specific rules. complaint procedure, supervisoryresponsibilities, responsive proceeding, orhearing.The policyaddresses conduct, inanyor policyviolations,participated investigation, 41 Sustainability Report 2020 and Safety Environmental Health Climate andEnergy

Our Planet Our Protect lasting to benefit planet. our the impacts of technology and drive applications to fundamentally transform and lifecycles, materials, processes, We challenge ourselves to reimagine 42 Sustainability Report 2020 and Safety Environmental Health Climate andEnergy electricity sources, including signinga use. We continue to invest inrenewable our industryandofworldwide technology accelerate thesustainabletransformation of We alsoconsider thisanopportunityto world emerges from thepandemic. reductions across ourbusiness even asthe achieve greater efficiencyandfootprint our Climate RiskAssessment, willhelpus global crisis,coupled withlearningsfrom enabled ourcompany to deliver duringthe The tools, processes, andinnovations that year asaspringboard for ourglobalgoals. We view thisextraordinary andchallenging performance nevertheless semiconductor industry, Applied to unprecedented in demand the essential business and responding the past year. Designated as an of our business and lives during impacted nearly every aspect The COVID-19 pandemic in 2020. in delivered record record delivered

aggressive 2030 climate goals. as we continue to drive progress toward our we willusethisdatato inform ourstrategy of ourtotal footprint in2019 and2020, and report represents amore accurate reflection of our2019 Scope 1and2data.This year’s SPI, whichhasrequired aslightrestatement tracking to amore robust system, Intelex products. We alsotransitioned ourdata to record production ofoursemiconductor 2020 increased 5%from 2019 baseline,due footprint. OurScope 1and 2emissions in business growth from ourenvironmental have additionalwork to doto decouple our our U.S.renewable energy goal. Still,we expected to beamajorfactor inmeeting operation commences inlate 2021, is wind energy project that,once commercial major power purchase agreement for a 43 Sustainability Report 2020 and Safety Environmental Health Climate andEnergy U.S. by 2022 sources by 2030, withaninterim goal of100%inthe 100% ofourenergy globallycomes from renewable 2030, from 2019 baseline 50% reduction inScope 1andScope 2CO2 Goal Goals andProgress Key Highlights Protect ourPlanet on track to setScience BasedTargets by 2022 Began analysis ofScope 3carbonfootprint, t flat despiteunp Kept Scope1an he semiconducto recedented dema d 2 emissionsn r industry* emissions by ea n rly d in from renewable sources 30.9% ofourglobaland60%U.S.energy comes 2019 baseline, dueto record production Scope 1andScope 2CO2 Progress global operations by 21%,compared to 2019* Reduced useofwater for irrigation inour operations by 62%,compared to 2019* Reduced hazardous waste inourglobal emissions increased 5%from U.N. SDG corrections to its 2019 data.Seethe2020 Data Annex for more details. system, Intelex SPI.With thistransition, Appliedhasidentifiedupdates and *Applied ismigrating ourenvironmental datatracking to anew, more robust 44 Sustainability Report 2020 and Safety Environmental Health Climate andEnergy

Climate andEnergy Based Targets initiative (SBTi). of ourcommitments through theScience to announce Scope 3targets in2022 aspart Scope 3emissions inventory aswe prepare 2030. We are alsoworking to quantify our Scope 1andScope 2CO₂e emissions 50%by initiatives willpositionuswell for reducing energy projects and other environmental strategies to ensure thatourrenewable over thecoming decade,we are developing demand andbusiness growth continue While we expect to seetheyear’s strong low-carbon a for future. working to our meet commitments is Materials Applied facilities, materials and equipment at our buildingof more energy-efficient operational efficiency, and the use Through cleaner energy, improved 2050), to show bothshorter- andlonger-term different years (2020 baseline,2030, and high-risk climate change scenarios inthree (RCPs) illustrating low, moderate, and Representative Concentration Pathways risk assessment utilizingthree different The assessment includedaphysical on Climate-related Financial Disclosures. with recommendations from theTask Force of climate-related risks anddisclosures inline foropportunities improving ourmanagement Climate RiskAssessment to identify In June2020, we athird-party undertook customers’ andsuppliers’ operations. related events andeffectively our support our ability to recover quicklyfrom climate- mitigation, andmanagement planshelpensure and facilities teams. Ourriskidentification, and Safety &Sustainability (EHS&S) teams personnel, aswell aslocalEnvironmental Health crisis management, andbusiness continuity core team ofglobalemergency response, wide andsite-specific risks a rests with basis. Responsibility for identifyingcompany- emerging climate-related risks onanannual Applied Materials monitors current and Climate Risks Applied’s transition to alow-carbon economy. regulation compliance) associated with higher costs ofdoingbusiness, andcarbon transitional risks (e.g., asset values, shifting emissions in2022, we willbeginanalyzing After completing ouranalysis ofScope 3 influenced business strategy andobjectives. specific casesinwhichtheanalyses have additional scenario analyses anddisclose In thecoming years, we willperform at ourmanufacturing facility. power gridfailures forcing a5-day shutdown affected ourmanufacturing operations, with In Texas, theFebruary 2021 winter directly and distribute N95 masks to ouremployees. and filtration to MERV 13wherever possible forced usto update ourbuildings’ airintake wildfire season,buthazardous airquality were undamaged by 2020’s record-breaking impacts firsthand. InCalifornia, our facilities experienced someofthese climate change This pastyear, ourU.S.operations geographical climate hazard indicators. operations basedonvarious chronic andacute identifying ourhighest-risk assets and risk exposure across ourglobaloperations, risks. The assessment determined Applied’s 45 Sustainability Report 2020 and Safety Environmental Health Climate andEnergy

102,400 MT CO Our Scope 2 (market-based) emissions fell to approximately energy procurement. by 2030), we are evaluating increases inourrenewable 100% renewable energy commitments (U.S.by 2022, global greatest additionalreduction. To keep usontrack toward our the power needsofourfactories andlabsisthearea of The largest ofourScope part 1and2footprint istraceable to industry. to meetunprecedented demandinthesemiconductor Massachusetts, andoverall production andbusiness growth manufacturing facilities inTaiwan, process expansion in 2019 driven primarilydue to theopeningofnew Applied of carbondioxide equivalent (MT CO₂e), a5%risefrom totaled approximately metrictons 151,300 (market-based) In 2020, AppliedMaterials’ Scope 1and2emissions Emissions emissions reductions goals. options post-COVID shouldhelpustoward ourScope 1and2 remote-work protocols. The likely persistence ofremote work was driven by facility inpart partial closures dueto COVID-19 2 e in2020, a2%decrease from 2019. This local orregional airpermitrequirements. before beingdischarged to theatmosphere, consistent with with point-of-use abatement unitsandfacility scrubbers Air emissions from ourmanufacturing processes are treated reduction targets in2022. 15 categories, andcompleting ourinventory andsetting quantifying Scope 3emissions across atleast10ofthe semiconductor technologies businesses. We alsoanticipate business, andpreparing to setbaselinesfor ourdisplay and setting baselinesfor tools produced by oursemiconductor currently assessing detailsofourlifecycle tool emissions, platformsvirtual inlieuoftravel wherever feasible. We are to continue encouraging theuseofteleconferencing and of teleconferencing. Post-COVID, AppliedMaterials intends during 2020 dueto pandemicrestrictions and theviability employee travel, acategory whosenumbers fell nearly71% and establishedreduction strategies for emissions tiedto emissions inventory. By early2020 we hadalready measured we are ontrack toward ourgoal ofquantifyingourScope 3 ofourcommitmentAs part to settingscience-based targets , party dataassurance partner. reliability, andare now working withathird- data entryandcheckingsystems to assure MT CO₂e. We have improved our internal Scope 1and2 emissions totaled 144,200 totals as145,400 MT CO₂e. Ouractual2019 inaccurately report our2019 Scope 1and2 Inadvertent omission ofdataledusto 46 Sustainability Report 2020 47

Renewable Energy ■ On-site solar power generation: Applied Materials In 2020, Applied used 121,982 MWh of green power from a maintains on-site solar generating capacity at our combination of these three sourcing strategies, representing In 2020, Applied Materials set a target of facilities in Singapore; Austin, TX; Sunnyvale, CA; and nearly 31% of our total U.S. power needs for the year. We 2020 Report Sustainability securing 100% of our global energy needs from Xi’an, China. Combined, these arrays generated 374 also signed a power purchase agreement to support a new renewables by 2030, with an intermediate step MWh of clean power in 2020. 500-megawatt wind energy project in Crockett County, TX. of using 100% renewable power in our U.S. We anticipate being able to offset a large percentage of our operations by 2022. To enable those targets, ■ Virtual power purchase agreements and RECs: U.S. footprint as this facility begins coming online in late 2021. we are following a global renewable energy Financial contracts with external solar, wind, and other renewable energy generating projects that deliver We continue to evaluate further renewable energy strategy built around three complementary power to the grid. Each Renewable Energy Certificate projects worldwide. strategies: (REC) provided by project owners represents the environmental benefits of 1MWh of electricity generated from renewable sources, affirming our investment in renewable power and providing reductions in our Scope Climate and Energy 2 emissions. Environmental Health and Safety ■ Utility green procurement programs: Direct purchase of renewable energy from a utility provider.

EPA Green Power Partnership

Applied Materials, 2020 and 2021 National Top-100 User of Green Power Top 30 Tech and Telecom Fortune 500® Partners and Safety Environmental Health Climate andEnergy semiconductor products. a 30%reduction inequivalent energy consumption for our which includeboostingmanufacturing efficiencyand driving are working withourcustomers onourambitious3x30goals, reduce consumption withinthesemiconductor industry, we share ofourglobalenergy andwater consumption. To help Our labsandmanufacturing facilities account for thelargest by 21%). groundwater (down by 26%) andwater for irrigation (down contributed to year-on-year reductions in consumption of facilities functioningatsignificantlyreduced capacity, likely our peopleworked remotely, leaving ournon-manufacturing recycling/reuse programs. Nevertheless, thefact that70% of 2020, we initiated nomajornew conservation, efficiency, or With pandemicmeasures takingprecedence throughout environmental leadership in our communities. environments and for demonstrate our people, healthy safe and ensure resources, work work continuously to reduce waste, conserve Throughout global our operations, we also to reducing our environmental impacts. of Appliedpart Materials’ overall commitment only are one emissions Our efforts reduction Environmental HealthandSafety update annually. andamorequarter in-depthenvironmental andsustainability receives areport onEHSandsustainability matters each Board’s Corporate Governance andNominatingCommittee by company management andguidedby ourEHSpolicy. The management, andproduct safety. These efforts are supported operations, emergency preparedness, environmental hazard andriskidentification,customer site support construction, fire andlife safety, andcontractor safety), teams responsible for EHSinon-site operations (including Our site team andmanagement meetings. to allAppliedlocationsglobally, andreferenced during often The policyissignedby ourPresident andCEO, distributed policy commits ourcompany to protecting theenvironment. Applied Materials’ Environmental HealthandSafety (EHS) Systems, andGovernance Environmental Policies, EHS&S organizationEHS&S isanintegrated entity with manufacturing sites. See documentation to therequirements ofISO 9000. (OSHA) Voluntary Protection Program (VPP), andEHS Labor’s Occupational Safety andHealthAdministration such asISO 14001, of ISO 45001, theU.S.Department conforms withinternational management system standards Health andSafety Management System (EHSMS), which We implementourEHSpolicythrough ourEnvironmental here for more information onISO certificationsfor our ambitious setofgoals thatincludesa Applied Materials isworking onan 30% semiconductor products reduction for our energy consumption 48 Sustainability Report 2020 49 Environmental Health & Safety

EHSManagement Management System System

GuidingGuiding Principles Principles 2020 Report Sustainability

Climate and Energy

Environmental Health and Safety Maximizing Energy Ensuring Safe Work Conserving Efficiency and Environments Natural Resources Reducing Emissions ■ EHS policies and ■ Using recycled materials procedures ■ Conserving energy Design for Safety Reducing Waste ■ Using process water ■ Supporting renewable ■ Safe chemicals policy energy and the Environment ■ Appropriate engineering controls ■ Minimizing product and ■ Improving resource efficiency packaging materials ■ Designing durable/ reusable/ ■ Reuse and recycling recyclable products ■ Designing efficient facilities ■ Designing safe products 50

Energy Management

Applied Materials is committed to maximizing energy 2020 Report Sustainability performance and minimizing consumption through:

■ Continuously monitoring energy use and conducting energy audits

■ Building optimal energy efficiency into all new facility construction

■ Purchasing only the most energy-efficient new equipment

Climate and Energy ■ Optimizing the temperature of water used in Environmental Health our operations and Safety ■ Transitioning to 100% renewable energy in the U.S. by 2022 and worldwide by 2030

Recent years saw Applied’s energy usage remain relatively In 2019, Applied opened a second building for partial usage in Tainan, Taiwan, called Tainan Manufacturing flat despite rapid operational growth. In 2020, energy use Center 2 (TMC2). Awarded the Taiwan Green Building label in 2020, the center utilizes green construction increased as demand for our products grew. materials and is outfitted with high-efficiency chillers and AI control for AC systems, high abatement efficiency for ozone-depleting gases, a high percentage of LED lighting, rainwater recycling, abundant outdoor planting, and See the Climate and Energy section of this report for more other features promoting energy savings, efficiency, waste reduction, and employee health. Functioning as the on Applied’s emissions and renewable power policies new home to our Display manufacturing operation, TMC2 is expected to be fully operational beginning in 2023. and performance. and Safety Environmental Health Climate andEnergy In 2020, we a Applied is committed of organic mate recyclables at to reusable (for example, are working to To l protocols. office andcafete reduction f recycling ofproduct andpackagin m basis andscored f i at thesite leve Wa b with a special focus on non-recyclable, landfill- ac Waste Managemen andfill/incineration to 80%, ndividual manufacturing sites rom our2019 ramework. Site w ound easurable redu Applie reduce r ste reduction, oss ou / We alsoslight recycling program success a / aste. recyclable ma r chieved anear pointofdisposal,andmaximizing composting

by reducing p performance th minimize the l l, withwaste ocations an rials from our ria operatio p ction insolidwas d annually,anapproachthathasledtoa reuse, andrecycling programs are rogram targets ’s overall env ly increased terials wherever rinted documentat amountofwaste generated ns dueto COVID ly

m from 79.2% in201 to minimizing wa cafeteria ope 34%reduction rough acombin a d i bas nagement targets setfor ronmental imp l ogistics o a g te andincreas e r materials. e reviewedonan d our ontheISO 14001 nd t diversion rate from a drop inwaste from possible, so rations. inoverall waste remote work at ion), shifting perations, ac 9. i on ofongoing t, e ourfacilit d reuse and ste m ongoing rt a i naged ng i es team andapplicable corporate stafffor immediate correction. monitoring, withproblems escalated to thesite management works. EachAppliedfacility isresponsible for wastewater content) before discharge to publiclyowned treatment adherence to permitted parameters (e.g., pHandfluoride monitoring to ensure sufficientremoval ofsolidsand negative impactsofwastewater produced by ouroperations, Wastewater Management: Appliedstrives to reduce the waste treatment, disposal,recycling, andstorage facilities. environmental, operational, andfinancialinformation on the CHWMEG Facility Review Program, whichprovides requirements. We alsoevaluate potential vendors via ensures thatalldisposal sites andmethodsmeetregulatory of third-party hazardous material disposalcompanies and and Sustainability organization provides additionaloversight consistent withapplicablelaws andregulations. OurEHS waste (includinghazardous waste) for off-site disposal, with licensed third to transport parties bothsolidandother a nearly63%reduction in volume from 2019. We contract for 2%ofourannualwaste outputin2020, representing Hazardous Waste Management: our responsible product andpackaging initiatives. See theDesignfor Sustainability sectionfor information on Hazardous waste accounted *Originating fr 2020 Waste Performance Diversion rate incineration Non-hazardous waste to landfill/ Diverted non-hazardous waste Total non-hazardous waste Total hazardous waste* Total waste generation om Appliedmanufacturing facilities, including R&Dandlabs Metric Tons 8,286.9 6,629.5 8,123.2 1,493.8 163.6 80%

51 Sustainability Report 2020 and Safety Environmental Health Climate andEnergy

(ML) CY2020 Water Performance 2,035 ML Total water withdrawal

Groundwater Purchased municipal 2,017 ML 17 ML water

EHS policyand ISO 14001 EHSMS, Water reduction iscovered underour areopportunities assessed asappropriate. water-related risks andminimization isresponsibleEHS&S for ensuringthat organization. OurManagingDirector of with oversight from thecompany’s EHS&S use management atspecificAppliedsites, Facilities groups are responsible for water purposes atourfacilities fell by nearly21%. demands. Ouruseofwater for irrigation production andresearch and development by 3.7% over 2019, owing to increased In 2020, ourtotal water withdrawal rose on efficientclosed-loopcooling systems. require significantwater, withothers relying In manufacturing, onlyafew ofourtoolsets landscape irrigation around ourproperties. operations, routine useatouroffices, and water, followed by ourmanufacturing highest consumption ofhigh-quality fresh operations. OurR&Dlabs account for our water useefficiencyacross ourglobal consumers, we strive to optimize our not conspicuously high-volume water Although Applied’s operations are Water Management ■ ■ ■ ■ Our water conservation effortsinclude: relevant regulatory requirements. conservation, andto meetorexceed all preservation andnatural resource continual improvements onenvironmental andmaketo identifyopportunities which callfor ourbusiness operations

of watering days irrigation to reducesmart thenumber Drought-tolerant landscapingand and Tainan Manufacturing Center 2) (at ourSingapore Operations Center landscaping ornon-production needs Rainwater collection for usein requirements use outlinedintheSEMIindustry design andspecificationsfor water following bestpractices for tool Designing water-efficient products, landscape irrigation potability, especiallycooling and applications thatdonotrequire Water recycling andreuse for 52 Sustainability Report 2020 and Safety Environmental Health Climate andEnergy

water-efficient tools. products. We are responding to thisriskby innovating more changing demandascustomers seekever more sustainable facility. Our othermostsignificantwater riskistiedto in water-stressed locations,notablyatourCalifornia R&D Atlas. In2020, 14%of ourtotal water withdrawal occurred Institute (WRI)Aqueduct Tool andAqueduct Water Risk uses widelyaccepted tools suchastheWorld Resources water-stressed regions around theworld, AppliedMaterials Assessing Water Risk: To gauge ourwater risks andidentify adverse climate change impacts to our global manufacturing facilities, including water-related impacts. where feasible, and improved measurement and documentation of our water We use. are also conducting physical risk assessments of potential Looking Applied forward, is developing an official policy focused on the continued reduction of water use and consumption, reuse and recycling staff for immediate resolution. escalated to thesite management team andapplicable corporate facility isresponsible for wastewater monitoring, with issues discharged to publiclyowned treatment works. EachApplied local laws, regulations, andpermit requirements before being careful quality monitoring andispre-treated consistent with other uses.Water that cannotberecycled orreused undergoes reuse asmuchwater aspossible for cooling, landscaping,and consumption and wastewater discharge, ourfacilities recycle and practices throughout ourvalue chain.To minimize both water where we operate, andto promote strong water stewardship our responsibility to protect water sources inthecommunities Water Discharge andWastewater: AppliedMaterials recognizes approximately 104megaliters. 2017, theIWNsystem hasreduced ourusage ofpotablewater by the originalmake-up water source duringhotter months. Since total cooling tower make-up water incold months,andaugments temperature management. The system provides over 90%of wastewater inthecooling towers thatprovide building Neutralization (IWN)program, reusing treated industrial wet tool manufacturing facility operates anIndustrialWaste Water Reclamation inAustin: InAustin, TX, ourlargest 53 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability Progress for Innovate harmony with nature. transformative innovation that works in and sustainable future by delivering shape and empower amore inclusive We embrace our unique to opportunity 54 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability where we canhave thegreatest impact. logistics, andsupplychain—andfocusing across ourfull network manufacturing, driven approach to identifyopportunities future. We are takinganend-to-end, data- customers’ roadmaps for amore sustainable transform ourown portfolio andadvance our been strengthening ourinfrastructure to Throughout 2020 andinto 2021, we have across industry. technology the change to effect opportunity Applied has an exceptional display in the world, we recognize every new chip advanced and solutions to used produce virtually engineering materials in leader empower adigital society. the As transformative solutions that our commitment to innovating is vision sustainability 2030 The core of Applied Materials’ life andreduce food waste. performance neededto extend product shelf paper-based materials thatdeliver thebarrier to innovate renewable andbiodegradable easily recyclable andworking withpartners developing packaging materials thatare more and consumer product packaging. We are environmental degradation: discarded food contributors to ocean pollutionandother working to address oneoftheworld’s largest flexible packaging product innovations, we are Through oursingleandtwo-layer recyclable to oversee implementation. andsupport 2020, we establishedaSuCCESS2030 Center Sustainability (SuCCESS2030) initiative inJuly Certification for Environmental andSocial Following thelaunchofournew SupplyChain carbon footprint associated withairfreight. shipping, whichwillsignificantlydecrease the recyclability, to intermodal andshifting to reduce weight andwaste andincrease We are pilotingnew packaging solutions savings for bothAppliedand ourcustomers. lines, resulting inlower consumption andcost sustainability innovation across ourproduct Excellence isdrivinggroundbreaking Our Designfor Sustainability Center of 55 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability Key Highlights packaging Reduced the weight of our emission road freight China and Singapore to lower- Shifted challenges global technology solutions that address Board Advisory Technical the Growth Launched 75% crate design by 50% of airfreight between to accelerate accelerate to flexible packaging solutions packaging flexible recyclable and two-layer mono- in innovations Advanced participating suppliers with coordination and training, conduct compliance audits, Office the SuCCESS2030 Established portfolio and business units environmental impact innovations that reduce test, andmodel, quantify Sustainability COE to design, Expanded scope of Design for to oversee metrics and across our across 56 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability target of15%by 2024 shipping, withinterim emissions reduction by moving from airfreight to intermodal Reduce supplychaincarbonemissions by 2030 semiconductor products by 30% Reduce equivalent energy consumption for by endof2023 content packaging,* withatarget of80% Transition thesupplychainto recyclable products by 30%by 2030 unit ratio (sqm/wph) for semiconductor Reduce tool footprint perproduction- semiconductor products by 30%by 2030 Reduce chemicalconsumption for Goal SuCCESS2030 Goals 3x30 Goals

Progress products in2020 demand for semiconductor was slowed by theunprecedented intermodal shipping;ourprogress demonstrate the feasibility of Conducted pilot tests to use models basis) andcompleted key energy for semiconductor products (2019 Set energy consumption baseline packaging in2020 Achieved nearly60%recyclable footprint to production rate ratios Completed key modelsfor tool impact models metric andcompleted key chemical Established chemicalimpact U.N. SDG performance specifications(e.g., stacking strength, plasticpurity), itisinfeasible for allapplications. packaging, rather thanrecyclable content packaging. Whilewe userecycled content inpackaging whenitmeets * Inour2019 Sustainability Report, we erroneously committed to agoal oftransitioning to recycled content of Business Conduct and AppliedMaterials’ Standards Comply withRBACode ofConduct minority-owned businesses by 2024 and representation of, women- and Increase thepercentage ofspendwith, treatment ofmetalsurfaces by 2024 Eliminate 100%ofphosphate-based pre- Goal SuCCESS2030 Goals(continued) Progress and initiated supplieraudits supplier training andoutreach assessment model;conducted Developed supplychainESG risk year-over-year diverse supplierspendby 2% On track to increase global evaluating results Conducting pilottrialsand

U.N. SDG 57 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability Design for Sustainability certified to ISO 9001:2015 for quality management. Among otherquality certifications, Appliedisglobally Consistent Quality, Consistent Improvement manufacturing industry-wide. the highenergy andchemicalimpactsofsemiconductor customers to drive ourten-year 3x30goals, seekingto reduce In oursemiconductor business, we continue to work withour own manufacturing operations. resources andhelpourcustomers boostsustainability intheir reusable orrecyclable products to minimize theuseofnatural and principles,whichfocus ondesigninglong-lastingand reflect theapplicationof “Designfor Sustainability” methods and processes across oursemiconductor business lines Since 2018, allin-development Applied Materials products manufacturing.greener towardlead industry technology the cleaner, helping are design sustainable in innovations shaping technology the our future, the way same the In innovations our make possible encompasses three core elements: existing products, ourcomprehensive, industry-leading effort and processes andhardware/software improvements for Covering bothdesigned-inefficienciesinnew products product lines. active sustainability development projects across ourSPG As aresult ofourDesignfor Sustainability program, we have ■ ■ ■

processes candeliver broad benefitto theplanet A dedicated, ensuringourtools customer and effort future tool designs chemical, andfootprint impactsofpast,present, and A proprietary modelingtool, quantifyingenergy, processes fordesign support more sustainable technologies and (CoE), whichincludesadedicated labinIndia, providing Our Designfor Sustainability Center ofExcellence 58 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability optimally to collect dataandinform sustainability improvements, etc. processes to reduce energy andwater consumption, locatingsensors sustainability performance—for example, redesigning chillers andchilling our CoE andU.S.labs,doingdevelopment work dedicated to improving In Bengaluru, India,ourconcept andprototyping labworks closelywith our customers, andmodelingsustainability leadership industry-wide. product enhancements, passing onsubstantialenergy savingto opportunities as well—adding new features to ourexisting portfolio ofenergy-saving traditional performance attributes to encompass sustainability performance With ourproduct thisdesignsupport, groups’ responsibilities extend beyond water, waste, and chemical reduction opportunities. existing semiconductor sets product to new identify energy, Design for Sustainability CoE analyzes and both in-design of our SystemsPart Engineering organization, Applied’s Center ofExcellence Design for Sustainability led by ourCTO. future. Launchedin2020, GTAB is andenableabetteropportunities, can address challenges, create Materials’ products andtechnologies GTAB advisesonways Applied industry, academia,andgovernment, Comprising technology experts from Advisory Board (GTAB) Growth Technical 59 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability for designandprocess improvements before year-end. chemical consumption analysis andexpect to beginleveraging these results As ofmid-2021, we are nearingcompletion ofourfirst-in-the-industry of certaintool setsintheirnext generation. success, leading to designchanges thatwillshave nearly 20%offthefootprint Our analyses tool footprint to support reductions have alsoyielded real-world deploy energy-reduction projects withmultiplecustomers. chillers, pumps, etc.). These analyses have surfaced insights we’ve usedto focus oncomponents known energy-intense to beparticularly (heater chuck, examining every tool component for potential savings, withaparticular To date, ouranalyses have focused primarilyonenergy consumption, we cancommunicate to ourcustomers to boostsustainability performance. existing identificationof process tools supports efficiencyimprovements that allowing improvements before thetool goes into production. Analysis of the tool’s projected resource consumption andotherenvironmental impacts, Analysis oftools inthedesignstage provides designengineers withdataon standardized methodologiesthatdrive reductions across multipletools. density persquare foot ofcleanroom space. Where possible, we tryto create consumption, andtheequipment’s physical footprint to increase throughput Modeling effortsfocus onour3x30goals ofreducing energy use,chemical legacy, in-production, anddesign-stage semiconductor manufacturing tools. design andend-userdatato pinpointsustainability improvements for Designed in-house,ourweb-based modelingandquantificationtool analyzes Modeling Sustainability andEfficiency wafer process emissons. Cradle-to-grave envelope captures globalwarming impactfrom production/transport ofinputchemicalsto post-abatement 3x30 ChemicalImpactMetric Transportation Transportation Production and Production and Cradle-to-Gate Cradle-to-Gate Upstream Upstream Chemical Chemical Impacts Impacts Direct ProcessDrains(ifpresent) Direct ProcessDrains(ifpresent) Chamber Chamber Process Process Gate-to-Grave Gate-to-Grave By-product By-product Chemicals Chemicals Abatement Drains Abatement Drains Abatement Abatement Impacts Impacts Drain Drain Emissions Abatement Emissions Post- Abatement Post- 60 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability energy thanLCDs insimilardisplay modes. and schemesconsume between 30%and 60%less they’re displaying, darker display colors, modes, power indirect ratio to thebrightness ofthepicture energy consumption. Since OLEDscreens consume contrast, cooler runningtemperatures, andlower more flexible panelswithsuperior color range and simplified architecture makes possible thinnerand in OLEDtechnology are self-illuminating. This light from analways-on backlightunit,thepixels Unlike LCDs, whichuseliquidcrystals to modulate down production costs andconsumer prices. (organic light-emitting diode)displays, driving through tools thatsimplifyfabrication ofOLED to drive thenext evolution inscreen technology displays. Now Applied’s displays business ispoised consumes less thanhalftheenergy ofolderCRT LCD displays, atransformative technology that equipment ushered inthe era offlat-panel In the2000s,AppliedMaterials’ advanced Superior Viewing andEfficiency OLED Displays:

shrink theindustry’s overall energy andchemicalfootprint. energy savings, meettheirown sustainability goals, and is helpingsemiconductor manufacturers realize substantial performance ofnew andexisting tools, AppliedMaterials Through ourfocus onimproving thesustainability Leading Industry-Wide Change Management iSystem Alarm TM Energy Saving Management iSystem TM iSystem TM Analysis Big Data million (US$3million). reductions of13,800MT CO₂e, andcost benefitsofNT$85 in annualsavings of13.4 millionkWhofelectricity, GHG measures developed from iSystem™ datahave resulted and otherenvironmental factors. At TSMC, energy-saving enables tracking ofresource consumption, GHGemissions, the operation ofsemiconductor fabrication tools, iSystem™ Fab 15Bfacility inTaichung City, Taiwan. Collecting datafrom TSMC, to introduce ouriSystem™ Recently, Appliedpartnered withoneofourkey customers, ■ ■ Ensure EnergySaving Performance ■ ■ Achieve EnergySaving Efficiency Learn more here

reporting system to precisely manage energy usage Development ofalarmmanagement system andenergy and EnB,automatic calculationofenergy saving Adoption ofISO 50001 EnMSandDevelopment ofEnPl Development ofSleepModeandRest Mode All-time anddynamicenergy saving intelligent controller atits 61 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability resulted insavings through optimizing theflow ofClean Dry and >7%,respectively. Product enhancements have also CMP andEpiproducts reduced energy consumption by >5% process products. Available energy-saving features onour deposition, andALD, anda>18%reduction inselected etch pass onselected products for metaldeposition,dielectric In 2020, we achieved reductions of>30%inarea perwafer that are expected to enableannualconsumption reductions of: Materials hasimplemented process equipmentimprovements Working closelywithanotherleading-edge customer, Applied GWh energy savings for N5/N3nodes. this initiative, helpingTSMC achieve amajormilestone of200 equipment for chipmanufacturing. Appliedisakey in partner its suppliercollaborations aimedatdeveloping green fab TSMC alsorecently announced sustainability advances in ■ ■ ■

eliminating 32MT CO₂e from manufacturing energy millionliters helium(a non-renewable8.2 resource), purity DIwater >220 MWh energy required for itsconversion to high- equivalent amountincity water consumption plusthe 24.5 millionliters de-ionized (DI)water, saving an ~9,000 MT CO₂e upstream anddownstream impacts >185,000 liters nitrogen trifluoride(NF3),eliminating key enablerofreducing total tool energy consumption. with theability to operate atless thanmaximumpower isa not processing wafers. Implementingperipheral components and introducing anidle/sleep modesettingwhentools are switching heat-exchange settingsandreducing pumpspeeds, Air (CDA) andchilledwater, reducing chemicalexhaust by reductions, andsustainability benefits. service products, stressing yieldimprovements, cost new tools, upgrades to theirexisting systems, andadvanced A robust communications program informs ourcustomers of 62 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability product’s functional life. that can or recycled reused be at of the end a lifecyclethe product and employing materials creatingthrough design, across efficiencies waste eliminating by vision economy circular Applied Materials works to promote the Promoting theCircular Economy Systems andParts Remanufacturing Semiconductor replacement cycles. grow theirfamiliarity withprocess operations, kits,and parts, (AGS) business collaborate to develop service routines and and service engineers from ourAppliedGlobalServices thatcanbereengineeredparts for repairability, whileparts our product designandmanufacturing engineers identify 70% over thepastthree years. Inacross-functional effort, percentage ofrepairable increasing parts from 65%to over consumable to repairable iscontinuous, parts resulting inour Expanding repairability: The process ofconverting from possible for repair andremanufacture. greater repairability andusingrefurbished whenever parts spare engineeringournewly parts: manufactured for parts of theseoperations, we maintainatwo-pronged approach to To thesustainability, support speed,andcost-effectiveness failif parts orperformance falls below acceptable standards. repurposing for new applications,and to beeasilyrepairable Our systems are upgrades designedto last, to support and be pulledfor cleaning andreconditioning. searchable inourinventory management system and ready to largest globalinventories ofspare withrecovered parts, parts over thepastthree years. We maintainoneoftheindustry’s electrostatic chucks, whosereuse rate hasincreased 11% by encompassing more categories—for part example, improving our refurbishment processes to grow thatnumber previousafter useinanAppliedsystem. We are constantly servicing AppliedMaterials tools have beenrefurbished level asanew On average, part. usedfor 40%oftheparts recirculation, withafullwarranty andthesameservice and isthenrecertified by AGS as“like new” for reuse and inspection, decontamination, refurbishment, andrepair, Each recovered goes part through anexacting process of manufacturing operation’s needfor virgin materials. market andreconditioning themfor reuse, reducing our specializes inrecovering andassemblies from parts the Recovery andreuse: Within AGS, adedicated team 63 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability our land,seas, andresources. GhG emissions), whilealsomitigating packaging’s effects on waste (which accounts for as muchasoneeighthofglobal packaged food by extending shelflife andpreventing food a circular economy thatretains thevalue embeddedin Through theseandothersolutions,we’re helpingto build renewable feedstocks. BOPEF film,a100%bio-basedpolyester created from improvements to thebarrierofnew pouches madefrom Applied Materials’ oxide coating technology isalsoenabling barrier paperthatisbothrenewable andbiodegradable. withvariouspartnering companies to findways to create polymer material (e.g., all-polypropylene pouches). We are to more easilyrecyclable structures madefrom asingle barrier filmsmadeonourtools thatenable thetransition The focus ofthiswork isreplacing aluminumfoil layers with vacuum coating systems to helpthemget there. decade, andleveraging Applied’s expertisewithroll-to-roll biodegradable, recyclable, orrenewable materials withinthe waste, companies are committing to afulltransition to by impendingregulatory targets for reducing packaging the recyclability offood packaging materials. Spurred working withcustomers to develop new solutionsto increase our sales,business development, anddesignfunctionsare At ourFlexible Technology Group business unitinGermany, Enabling Recycling ofFlexible Packaging needed actions in each part ofthevalueneeded actionsineachpart chainto make ithappen. CEFLEX stakeholders have endorsed a five-step roadmap to buildingacircular economy for flexible packaging, together with Applied Materials isamemberofCEFLEX , acollaborative initiative representing thefullvalue chainofflexible packaging. Building aCircular Economy for Flexible Packaging 5 1 flexible packaging materials End markets for allrecycled packaging andrecycling for sorting Drive collection ofall flexible 4 2 3 sort andrecyclesort theremaining fractions Identify solutionsanddevelop capabilitiesto mono-material fractions andrecycleSort thesuitable recycling streams where possible packaging to mono-materials withexisting Redesign multi-material flexible © ceflex.eu 64 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability (UK Conformity Assessed) mark. standards. Products soldintheUKbearsimilarUKCA conformity withEuropean health,safety, andenvironmental and labelingrequirements, includingtheCEmarkaffirming in theEuropean Unioncomply withregional manufacturing pollution from electronic information products. Products sold comply withtheadministrative measure onthecontrol of are marked withamandatory “ChinaRoHS 25”labelto requirements. For example, products distributed inChina We follow allrelevant country- andregion-specific applicable requirements. safety assessments validate that meet our products industry standards and guidelines. Third-party comply with applicable legal requirements and safe are to andto use products our ensure labeling, and testing policies and programs comprehensive manufacturing, design, product Applied Materials develops and implements Product Safety services, monitors theirsafety duringtheproduct’s lifecycle, anddrives compliance withourproduct safety policyandprocedures. provided to theuser. OurProduct Safety group partnerswithothercompany functionsto oversee thedesignofproducts and acceptable level whentheproducts are operated, maintained,andserviced inaccordance withtheinstructionsandinformation personnel, theuser’s facilities, andtheenvironment from exposure to risks, andthatany residual risks remain below aminimum unitorgroupbusiness thatdevelops, sells,ordistributes productsAny ensures suchproducts have beenengineered to protect currently underreview. with potential enhancements risk assessment guideline, applicable SEMIS10industry standards follow the Our risk-assessment Risk Assessment 65 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability partners, magnifyingpositive impactsacross theindustry. and waste-reduction processes, withtheintention ofsharingkey learningswithoursupplier performance targets. Inthree oftheseareas, we are runningpilotprograms to test efficiency require shared commitments infive mainESG focus areas, mostofwhichincludedefined Under SuCCESS2030, Applied’s assessments ofsupplier performance andcapabilitiesnow supply chain for semiconductor and display manufacturing. roadmap sustainability our that 10-year a extends vision across our In 2020, Applied Materials introduced our new SuCCESS2030 initiative, Supply ChainResponsibility ■ ■ ■ in logisticsGHGemissions by year-end 2023. As aninterim goal, we have atarget ofusingthesemethodsto achieve a15%reduction of intermodal shipping optionsthatcandeliver product withinareasonable timeframe. Transportation andLogistics: To reduce emissions from airfreight, we are exploring use content for targeted plasticsandcorrugated fiberboard by year-end 2023. feasibility ofreducing theuseofvirgin materials. Ourgoal isto reach 80%recyclable content suchascorrugated fiberboard andplastics.Testing andmeasurement drive the and types. Cases andcrates are designedfor reuse, whereas boxes contain recyclable recycling options.We are piloting thebalance ofallthree with certain packaging materials avoid damage duringtransport, andwe are continuously exploring reuse, reduction, and Packaging: Ourprecision tools andproducts require carefully designedpackaging to From thisbaseline, we canbetter gauge progress usingRBAassessments andaudits. in theireffortsto conform to theResponsible Business Alliance (RBA) code ofconduct. advancing sustainablepractices oursuppliers andsupporting theirsub-tiersuppliers to oursuppliers, providing resources, guidelines,tools, andtrainings to buildcapacity on Supplier Responsibility, Engagement, andAssessment: Appliedstrives to beapartner

and coordination suppliers. withparticipating SuCCESS2030 Office, which oversees metricsandcompliance auditsandconducts training and international humanrightsstandards. SuCCESS2030 ismanaged through ournew minerals sourcing, andotherprograms promoting adherence to industrystandards ethicallaborpractices,of supporting environmentally responsible operations, responsible SuCCESS2030 strengthens Applied’s ESG supplychainstrategy, buildingonourfoundation ■ ■

to significantlygrow thepipelineofdiverse talentavailable to theindustryby 2030. minority-owned businesses, allby 2024. We are alsoworking withourtrade associations and otherunderrepresented groups andincreased percentage spendwithwomen- and own near-term supplierdiversity targets includeincreased representation ofwomen promotes development ofrobust diversity strategies throughout oursupplychain.Our Inclusion andSupplier throughout oursupplychain. goal isto eliminate 100% ofphosphates employed inthisprocess by year-end 2023, phosphates usedinpre-treatment ofmetalsurfaces to zincoxide. andshifting Our in bothareas. Currently, we are pilotingaprogram to test theefficacyofremoving all of wastewater, we are cognizant oftheneedto reduce ourindustry’s large footprint Wastewater: Though ourown operations are neitherwater-intensive norlarge emitters Diversity: Mirroring ourown I&Djourney, SuCCESS2030 66 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability supplier are required to: logistics supplierterms. By contract asapplicable, Applied’s indirect services. In2021, we are addingtherequirements to enumerated inourmostcommonly usedagreements for purchase-order transactions. These requirements are also and are alsoincludedinthe terms andconditions for all agreements viaour“Supplier ESG Requirements” attachment, into ourGlobalSupplierAgreements andothersupplier For direct suppliers, ourESG requirements are incorporated Contract Obligations building our suppliers’ competencies to reach it. we As and raise planet. the bar, we’re also building amore sustainable business, society, SuCCESS2030 is aseries of best practices for Training, andAssessment Supplier Engagement, ■ ■

and meetrelated statutory and regulatory requirements Comply withourResponsible Minerals Sourcing Policy sub-tier suppliers and ensure RBAcode compliance amongtheir and theRBACode ofConduct intheirown operations Implement Applied’s Standards ofBusiness Conduct

■ ■ ■ ■ ■

Control Act number 1907/2006) andtheU.S.Toxic Substances regulations, includingbutnotlimited to REACH (EC company to comply withmaterial content restriction Provide information requested by Appliedto enableour human trafficking insupply chains Chains Act of2010 Comply withtheCalifornia Transparency inSupply requirements Comply withApplied’s minimumproduct EHS safety law, rule,regulation, order, decree orordinance” Policy and“any applicableenvironmental, healthor Comply withApplied’s Environmental HealthandSafety ensure compliance amongtheirsub-tiersuppliers governance requirements intheirown operations and Meet Applied’s otherenvironmental, social,and , addressing theriskofslavery and policies andprocedures. safe work environments, andotherresources related to our Standards ofBusiness Conduct, EHStrainings onmaintaining training program, whichoffers web-based training onour These SuCCESS2030 trainings extend ourexisting supplier communicate oursustainability expectations. engage mostfrequently withoursuppliers canknowledgeably to complete thesetrainings, assuring thatthepeoplewho Our Appliedcommodity business managers are required help oursuppliers closeany gaps across ourESG focus areas: structured program ofwebinars, trainings, andassistance to In2021,driving benefitto we allparties. began offering a We want thiswork to beapartnership, withcollaboration Engagement andTraining ■ ■ ■ ■

pre-negotiated rates sustainability assistance from aconsultant at Ability to contract for socialresponsibility and RBA workshops Training through theRBAe-Learning Academy and ESG Requirements Online training onApplied Materials SupplyChain Weekly live webinars oneachkey area ofESG focus

67 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability audits consistent withRBA audit standards. 50% in2022. We have contracted withanRBA-approved third-party auditfirmto conduct such undergo anRBAexternal auditin2020. This percentage grew to 33%in2021 andwillreach suppliers. Consistent withRBAprovisions, Appliedrequired 25%ofourhigh-risksuppliers to forced aplannedpilotprogram usto curtail ofon-site ESG auditsfor certain high-riskdirect Internal auditsofsuppliers identifiedashaving highESG riskbegan in2020, though COVID-19 tools they needto comply andthrive. SuCCESS2030 holistically, identifyinggaps atevery level andgivingsuppliers theresources and corrective actionsolelyonsuppliers identifiedashighESG risks, we are implementingour a weighted riskmatrixthat encompasses ESG andotherriskindicators. Ratherthan focusing We conduct detailedevaluations ofreported information andassign suppliers riskscores using subsets ofoursuppliers (asapplicable)to: reflects theseassessments inoursupplierscorecards. To secure baselinedata,we require Applied Materials employs ametrics-basedapproach to assessing supplychainESG risks and Supplier Assessments andAudit ■ ■ ■

Report ontheirperformance underenvironmental regulations due diligence Submit Conflict Minerals Reporting Templates ofourConflict aspart Minerals the RBACode ofConduct (top 80%ofdirect suppliers, by spend) Complete annualself-assessment questionnaires to measure theirconformance to

View ourHumanRightsStatement ofPrinciples here. supplier scorecards. on humanrightsriskinoursupplychain,andflagzero-tolerance issues inour the workforce andforbidding forced andbondedlabor. We conduct duediligence partners to ensure compliance withourexpectations around humanetreatment of rights commitments andrequirements clearlyto oursupply chainandbusiness in thepoliciesandstatements listed onpage 41. Our commitment to protecting humanrightswherever we dobusiness isdetailed including childlabor, indentured labor, slavery, andhumantrafficking. condemn andare committed to endingforced andbondedlaborinallitsforms, conducting business inanethicalandresponsible manneraround theworld. We Applied Materials isunequivocally committed to protecting humanrightsand Protecting HumanRightsinOur SupplyChain We communicate ourhuman 68 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability our products. our responsible sourcing of minerals in used Applied Materials is committed to the Responsible Minerals Sourcing

and humanrightsabuses. of Congo (DRC) andadjoiningcountries affected by conflict minerals for theirfrequent originintheDemocratic Republic tungsten, andgold, commonly referred to as3TG orconflict Key to thiscommitment isourpolicyaround tantalum,tin, with RMIguidance. nickel, lead,zinc, andmicausedinourproducts, consistent ahead, we intend to expand duediligence to thecopper, annual spend),garnered an86%response rate. Looking sold to AppliedMaterials (and whorepresent 42%ofour encompassed suppliers likely to employ cobalt inproducts and adverse environmental impacts.This effort,which that hasbeentiedto childlabor, unsafe working conditions, chain’s useofcobalt, afrequently DRC-sourced mineral beyond 3TG by conducting due diligence onoursupply In 2020, we extended ourresponsible minerals commitment Conflict Minerals Reporting Template issued to suppliers. 2019). We have maintainedanear100%response rate to the to cover 91%ofourtotal supplierspend(versus 80%in our duediligence effortsby approximately 58%over 2019, increased thenumberof suppliers we surveyed of aspart well asindependentthird-party audits.Incalendar2020, we Initiative (RMI)Responsible Minerals Assurance Process as efficacy ofourpolicy, we utilize theResponsible Minerals Responsible Minerals Sourcing Policy in2020. To assure the direct suppliers’ sourcing of3TG minerals, we adopted a commitment to duediligence anddisclosure andguideour or refiners thatprocess theseminerals. To communicate our nor maintainany direct relationship withmines,smelters, 3TG minerals, we neitherpurchase theseminerals directly While ourproducts include components manufactured with 69 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability Singapore manufacturing facility. As ofmid-2021, the changeover is90%complete atour thickness for ourlow-density polyethylene (LDPE)bags. To save materials, we are moving from 6milto 4 mil Lighter Polyethylene Bags current initiatives include: better tracking ofourpackaging’s recyclable content. Other that require suppliers to report materials datato enable also reusable. In2021, we are developing new specifications corrugated fiberboard, steel, andwood), many ofwhichare made from recyclable materials (polyethylene, polypropylene, In 2020, approximately 60%ofourpackaging materials were vibration and shock during transport. designed packaging to avoid damage from precision require carefullyOur products Packaging Reduction andReuse be discarded. the enduserthatpackaging isreusable andmustnot In 2020, we introduced new labelsthatcommunicate to Reusable Packaging Labels reusability process for our500-pound pallets. packaging collection andreuse. We are alsoexploring a pilot project isusingourLogistics Tracking System to enable we are testing international loopsinQ32021. Acurrent for reuse. Beginningwithadomesticloop from Singapore, customer sites andreturn themto themanufacturing location materials (wooden crates, metalfixtures) post-install from In 2021, we began pilotingaprogram to collect packaging Reusable Packaging 208 poundsinshippingweight. barrier bagged. Inonerecent shipment,thenew crates saved handlers. Parts insideare well-packed andfullymoisture- material cost, easerecycling, andincrease safety for freight annually. They alsocuttransport emissions andpackaging in packaging weight, saving theequivalent of3,917 trees corrugated kraft board, thenew crates offer a50%reduction Using thesamewooden basebutreplacing thetop with crates withhybrid crates for lighter product shipments. In Q22021, we began replacing cleated-plywood andlumber Hybrid Crate Design

burdening materials suchasPVC andtoxic foams. plan to restrict theuseofnon-recyclable andenvironmentally use ofnon-recyclable materials suchasStyrofoam. We also To keep ourpackaging outoflandfills,Appliedprohibits the Waste Reduction

70 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability and shippingcapacity improve. procedures willfacilitate aquicker rollout once conditions expand butourwork thatshift, setting processes and constraints duringCOVID-19 have limited ourability to for trans-Pacific deliveries. Shippingandport-operations We are alsopiloting aprocess ofmoving to ocean transport fromimported suppliers located inAsia. compared to 2019. Ninety-five percent oftheseshipments were sea-shipments during2020, reflecting an overall increase of5% Rehovot, Israel, we were ableto divert 51% ofair-shipments to to-Singapore currently shift standsatapproximately 75%. In succeeded nearly100%ofshipments.The inshifting China- China to Singapore. OntheVietnam to Singapore route, we’ve fromof shifting airto road transport for freight from Vietnam and In JulyandNovember 2020, respectively, we began the process impact onoperations. buffer against slower shippingtimes,preventing negative transport. Additional cross-functional planningallows usto operations to lower-emission modessuchasroad andocean Applied Materials ourairfreight istakingsteps to shift In linewithourSuCCESS2030 emissions-reduction goals, Transportation andLogistics consolidation expected by year-end. reducingfurther ourenvironmental impacts.The new center willbeginoperation inJanuary2022, with and costs. Rooftop solarpanelswillallow usto offset 40%ofthenew building’s total electricalconsumption, reduce ouroverall footprint, significantlycuttingelectricity consumption andintercampus transportation emissions In Austin, TX, consolidation from multipleregional sites into ournew, purpose-builtlogisticscenter willdramatically Austin: Better Logistics, SmallerFootprint 71 Sustainability Report 2020 Supply ChainResponsibility Product Safety Promoting Circular Economy Design for Sustainability our supplier diversity initiative grows, we adding resiliency to oursupplychain.As inclusion across ourprocurement operations, we are alsoworking to integrate equity and expanding ourdiverse supplierbase, Beyond Council (WBENC). Women’s Business Enterprise National Supplier Diversity Council (NMSDC)and certifications through theNationalMinority existing suppliers to pursue theirdiversity suppliers. Inaddition, we are with partnering both existing andnewly onboarded diverse spend by atleast2%year onyear, through have committed to increasing ourdiverse of themainpillars ofSuCCESS2030, we With oursupplierdiversity program asone 2020. in clarity movement brought into stark an imperative the social justice must to extend our supply chain— to our own workforce goals but diversity cannotbe limited efforts Applied Materials’ inclusion and To Make Possible Future, aBetter Supplier Diversity set apositive example for ourindustry. diversity throughout oursupplychainandto true partnershipwithoursuppliers to drive Over thelongterm, we strive to builda ■ ■ ■ ■ programs. Ournear-term objectives include: in alignmentwithothersupplierdiversity Diversity framework to measure ourprogress are usingtheRGMA Five Levels ofSupplier

efforts to boosttheirown supplierdiversity Hosting webinars for oursuppliers 2 supplierbase diverse spendwithinourTier 1andTier Evaluating to increase opportunities and commodity business managers executives, procurement professionals, Providing trainings for senior diversity program professional to manage oursupplier Hiring adedicated mid-level supplier diversity inthesemiconductor industry. working group, Applied Materials isworking to provide bestpractices for As afounding memberofSEMI’s Manufacturing Ownership Diversity (MOD) could potentially beregistered asdiverse ifthey proceed withcertification. veterans. AppliedMaterials alsotracks additionaldiverse suppliers that women, LGBTQ, persons with disabilities,veterans, orservice-disabled American, Asian-Pacific American,Asian-Indian American),women, minority U.S. minorities(African-American/Black, Hispanic/Latin-American, Native auditor asbeingatleast51% diverse owned, controlled, andoperated by Applied Materials’ diverse suppliers mustbecertifiedby athird-party Defining Diversity 72 Sustainability Report 2020 property oftheirrespective owners. © 2021 AppliedMaterials, Inc.Allrightsreserved. AppliedMaterials, theAppliedMaterials logo, Make Possible are trademarks ofAppliedMaterials, Inc.intheU.S.andothercountries. Allother trademarks contained herein are the disclosures andexpands transparency through: report in2005.This report buildsonApplied’s previous begun withourfirst Corporate SocialResponsibility (CSR) “Applied,” company”), or“the thisreport continues thework subsidiaries (collectively referred to as“Applied Materials,” Published onbehalfofAppliedMaterials, Inc.andits About thisReport ■ ■ ■ ■

Publishing our HumanRightsStatement ofPrinciples assurance Enhancing thecredibility ofourdatathrough third-party section oftheAnnex reported data,asdescribedintheEnvironmental Data Continuing to improve andrefine theaccuracy ofour which canbefound inthereport Annex expanded workforce andglobalvoluntary turnover data Providing additionaldataanddisclosures, including been incorporated throughout thereport andAnnex . and corrections to its2019 environmental data,whichhave With thistransition, AppliedMaterials has identifiedupdates tracking to anew, more robust system calledIntelex SPI. completed theprocess ofmigrating itsenvironmental data unless otherwisenoted. In2021, AppliedMaterials marked otherwise.Report datacovers allglobaloperations annual basisanddataisreported by fiscalyear unless clearly Applied Materials produces itsSustainability Report on an report’s of fullTCFD reporting next year. TCFD isdiscussed inthe Disclosures (TCFD) disclosure framework inanticipation alignment withtheTask Force onClimate-related Financial also provided inthereport Annex. We are increasing our Standards Board (SASB) Semiconductor Standard are Disclosures following theSustainability Accounting United NationsSustainable Development Goals(SDGs). report, we demonstrate alignmentandcontribution to key GRI Index isincludedinthereport Annex. Throughout the Global Reporting Initiative Standards: Core A option. This report hasbeenprepared inaccordance withthe Climate andEnergy section. to update them. projections, andassumptions, andwe assume noobligation statements are based onmanagement’s current estimates, our recent Forms 10-K,10-Q,and 8-K.Allforward-looking set forthinthe“RiskFactors” of ourSEC filings,including from thoseexpressed orimpliedby suchstatements are Factors thatcould causeactualresults to differ materially uncertainties andare not guarantees offuture performance. historical facts. These statements are subjectto risks and our commitments, targets, andotherstatements thatare not This report contains forward-looking statements, including and processes. require annualthird-party auditofourmanagement systems 14001:2015 andISO 45001:2018 certifications,which 74. Further, allAppliedmanufacturing sites maintainISO ERM CVS, whoseassurance statement isprovided onpage Sustainability Report and Annex hasbeenconducted by Limited assurance ofselectindicators includedinthe Report Information andData Assurance 73 Sustainability Report 2020 Third-Party Data Assurance Statement 2019 to October 25, 2020 25, October to 2019 ( Services Verification and Certification ERM Materials 2020 Sustainability Report Sustainability 2020 Materials the to in relation assurance provide responsibilities Respective Assurance s Assurance c Reporting engagement assurance Scope tandard riteria

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