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2018 Corporate Social Responsibility Report Lam Research | Corporate Social Responsibility Report 2018 1 Lam Research Corporate Social Responsibility Report 2018 Lam Research | Corporate Social Responsibility Report 2018 Contents 2 Contents Letter from Our CEO 3 About this Report 4 Company Overview 7 Workplace 11 Community 17 Operations: Environment and Safety 21 Performance Summary 27 GRI Index 28 Lam Research | Corporate Social Responsibility Report 2018 Letter from Our CEO 3 Letter from Our CEO This is Lam’s 5th annual corporate social responsibility • Workplace – We are increasing our focus on (CSR) report, and it features updates on our continued inclusion and diversity in the workplace and for the progress against our 2020 environmental commitments, first time are publishing demographics of our investments in our employees’ career development and workforce; this underscores our commitment to wellbeing, and ongoing support for the communities transparency as we address this important topic. where Lam employees live and work. Lam’s contributions to the growth of the semiconductor industry and the data • Community – The Lam Research Foundation economy have never been greater, but we don’t stop increased its giving by 13% from 2017, with a there. We strive to make a lasting, positive impact for record $3.7 million in grants, scholarships, and all our stakeholders and commit to be a proactive and employee-matched donations to non-profits and responsible corporate citizen. scholarship programs. This year, to further integrate CSR into the business, we • Operations: Environment and Safety – We surpassed created a cross-functional CSR Team to develop and drive our 2020 goals for greenhouse gas intensity and CSR objectives and strategies. The team’s activities are renewable energy, and we maintained our strong coordinated and driven by a dedicated CSR manager, a track record for worker safety. new position created in 2018. Lam is well-positioned to deliver on the CSR priorities We have organized our CSR report into four main for our employees, customers, shareholders, and chapters: Company Overview, Workplace, Community, communities. We are excited to be on this CSR journey and Operations: Environment and Safety. We have and we hope this report offers valuable insight into Lam’s addressed the topics that are priorities for our ongoing commitment to CSR. stakeholders and represent opportunities for Lam to make a positive environmental or social impact. Here are some highlights you’ll read more about in the pages to follow: • Company Overview – We continued to increase our investments in research and development, Tim Archer dedicating over 60% of our operating President and Chief Executive Officer expenses to providing our customers with best-in- class and innovative products and services. Lam Research | Corporate Social Responsibility Report 2018 About this Report 4 About This Report Lam Research Corporation has published this Corporate Social Responsibility (CSR) Report to provide an overview of our company’s products, services, and operations related to environmental, social, and economic performance. This report covers calendar year 2018, with some exceptions noted, including financial data that is Lam’s fiscal year 2018 (July 2017-June 2018). The report encompasses all wholly-owned subsidiaries across the globe, although some data may be limited to particular geographies which we note throughout the report. We self-declare that this report is in accordance with the Global Reporting Initiative (GRI) Standard framework at the Core level. As required, a GRI Index at the end of the report shows our alignment with GRI reporting elements and our material topics. We intend to continue to report annually. We have noted any significant changes in scope and boundary throughout the report that may vary from our 2017 report, which was published in 2018. External assurance is limited to our financial data certified in our The CSR Team includes representatives from Global 2018 Annual Report on Form 10-K. This CSR report has Customer Operations, Global Workplace Solutions, been reviewed by the Compensation and Nominating and Environmental Health and Safety, Investor Relations, United Nations Sustainable Development Goals Governance Committees of our Board of Directors and Global Human Resources (HR), Legal, the Office of has been reviewed and approved by our President and the Chief Technology Officer (CTO), Global Supplier CEO. Management, Corporate Communications, and Community Relations. Questions and comments about this report can be addressed to [email protected]. Materiality Lam’s Approach to CSR We used the GRI materiality assessment process to determine the content of the report and identify key Our Core Values help to guide the decisions we make in issues and topics to address. every aspect of our business, informing what we do and how we do it. They shape the way we define success in In 2018, we conducted a new materiality assessment. the marketplace as we create solutions for our customers; Using a third-party firm, we reviewed important topics invest in our employees; incorporate environmental, and risks published in our 2018 Proxy and Annual Report, social, and economic responsibility across our business; consulted with senior management, and catalogued give back to our communities; conduct our business feedback from stakeholders, including investors. The ethically through good governance; and deliver value to results of this materiality assessment will inform 2019 CSR our shareholders. activities and the 2019 CSR Report. The CSR team also benchmarked our CSR program in part based on scores In 2018, we created a corporate CSR Team, led by a CSR and rankings by third-party ratings organizations. Manager, to guide our corporate responsibility goals and activities, benchmark our programs against the In September 2015, 193 member States of the United Nations adopted 17 new Sustainable Development Goals expectations of our stakeholders and industry, establish (SDGs) to make our world more prosperous, inclusive, sustainable and resilient. Lam recognizes the importance and drive future CSR objectives, and deliver plans and of these goals and the role businesses play in achieving them. Lam is committed to aligning our programs and progress updates to the CEO and Board of Directors. initiatives and do our part towards achieving these global goals. Lam Research | Corporate Social Responsibility Report 2018 About this Report 5 The previous materiality assessment, conducted in 2013, Community engagement – We meet with local Energy efficiency – Energy is a significant contributor to Occupational health and safety – We are committed to produced the list of material topics within this report, but government officials, regulators, and civic organizations to our greenhouse gas (GHG) profile, and we set goals and providing our employees a safe and healthy workplace, we have increased our coverage of inclusion and diversity build partnerships that result in positive contributions to implement projects to make significant improvements in whether they work in an office, a manufacturing or R&D topics due to emerging interests in 2018. the local economy and community. our energy performance. facility, or in the field. For our 2013 assessment, feedback was solicited Customer data protection and privacy – Our customers, Ethics – Our Global Standards of Business Conduct Policy Product safety – Safety is built into our product design, from these stakeholder groups: customers, investors, employees, and business partners expect that our provides guidance for ethical behavior, rooted in our manufacturing, and workplace operational systems. suppliers, policymakers, and communities. To collect this information technology systems and data are secure, Core Values. We provide global training on ethics and information, we leveraged the use of a survey, interviews, and we are committed to protecting their information compliance, and maintain a global Ethics and Compliance Product compliance – Safety, environmental, labor, and and technical reviews by management advisors. Based and privacy. Helpline for reporting issues or asking questions. regulatory compliance with local, national, international on this feedback, more than 74 material topics were and industry standards are incorporated in our products. identified, from which a list of 15 priority topics emerged. Design for the environment – We provide product Greenhouse gas emissions – As a global company with Regulatory compliance – We are diligent in our features at our customers’ requests that improve energy manufacturing operations, we recognize that our GHG compliance with relevant environmental regulations For the purposes of this report, we define our material efficiency, lower waste and water use, reduce carbon emissions contribute to climate change, and we strive to around the world. We also require our suppliers to do the topics below: footprint, extend longevity, and use less packaging. reduce our GHG footprint. same. Business continuity – Through a formal risk management Emerging environmental regulations – We monitor, New product pipeline – Through continued investments process, we prepare for potential operational, prepare for, and comply with emerging regulations in research and development (R&D), we remain a key environmental, regulatory, and marketplace risks and regarding the environmental impact of our products. enabler of emerging technologies like the Internet of opportunities that might affect our ability to conduct This includes
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