KLA Charts Aggressive New Scope 3 Emissions Reduction Target for 2030
KLA, a leading global supplier of semiconductor equipment and services, announced an audacious new target to tackle greenhouse gas emissions, specifically Scope 3 emissions emanating from the use of its products by its customers, following the approval of near-term targets by the Science-Based Targets initiative.
In 2022, KLA made a strong commitment to reducing Scope 1 and 2 GHG by 50% by 2030 off the baseline of 2021. The same targets stressed that the company, by 2030, needs to achieve 100% renewable electricity for the company’s global operations, combined with a general ambition of commencing Scope 3 activities. These commitments formed part of a broader move by KLA to upgrade its environmental stewardship while keeping pace with the global climate goals.
Scope 3 embodies the indirect emissions that happen in companies along a value chain, excluding the company’s own operations—two-thirds of a company’s total GHG footprint. At KLA, Scope 3 represents more than 98% of its total GHG, where the use of sold products contributes a quarter to this category. Recognizing the critical role these emissions play, KLA has set a new target aimed at reducing Scope 3 emissions specifically related to the use of its products.
The company’s new Scope 3 goal is to achieve a 52% reduction in the emissions per billion transistors inspected, measured, or processed by KLA products at customer manufacturing sites by 2030, compared to a 2021 baseline. This was an ambitious target, decided on after detailed efficiency metric modeling and product roadmapping that let KLA project a feasible yet impactful Scope 3 emissions decrease.
“The close collaboration with our customers gives us a deep understanding of the challenges in the industry and our impact on the environment,” said Ahmad Khan, President of Semiconductor Process Control, Electronics, Packaging, and Components, and KLA Instruments, when emphasizing the importance of this target: “The SBTi approval of our science-based targets marks an important achievement for us. It only serves to demonstrate our commitment, but it also sets a benchmark for others within the industry that helps further accelerate our collective reduced emissions and enhanced performance.
The new Scope 3 target is being announced as KLA releases its annual 2023 Global Impact Report, which presents a comprehensive review of KLA’s performance against its ESG objectives for the past year and offers stakeholders in-depth views on company progress.
John McLaughlin, Global ESG Leader at KLA, added regarding the new target’s importance: “Similar to the way we work with our customers to solve problems, our Scope 3 goal is driven by technological innovation which improves our efficiency. Building on 48 years of delivering leading solutions, we’re committed to raising product yield and reducing waste across the semiconductor industry.”. With our near-term targets validated by SBTi, we now have a clear metric to guide our sustainability efforts. We are keen on continuing to offer solutions that assist customers in hitting their climate targets.
The commitment of KLA to Scope 3 reduction falls in line with a more general trend across the industry toward enhanced responsibility and action on the climate. By focusing on end-use product emissions, KLA is not only working on a critical source of its environmental footprint but also providing leadership for the semiconductor sector in response to global challenges to sustainability.
Tactically, leveraging technological capabilities will continue to be the way through which the company will remain competitive in its pathways to sustainability—by driving product efficiency improvements and minimizing waste. In its march toward its 2030 emissions reduction target, KLA will continue to work very closely with customers and apply technology advances in support of the latter’s climate goals for a more sustainable future.
In summary, the new Scope 3 goal presents a huge undertaking for KLA in reducing the emissions associated with the use of its products. Now that SBTi approval has been granted with an obvious path ahead, KLA can make great strides within its sustainability journey and undoubtedly set a leading example across the industry while further defining its position as a leading player in the advancement of environmental stewardship.