Proactively managing our environmental, social and governance (ESG) impacts is an integral part of our mission to advance humanity. Our ESG strategy serves as a roadmap to get us there—informing our decisions, holding us accountable for progress within our business and our communities, and helping our customers achieve their own ESG goals.

We are on a journey to continually improve our understanding of the evolving ESG topics most relevant to KLA, manage them accordingly, and drive improvements in our performance. In August 2023, KLA announced that we are submitting our climate goals to the Science Based Target Initiative (SBTi), including a quantifiable Scope 3 reduction target alongside our existing Scope 1 and Scope 2 emissions goals.

Progress achieved in 2022:

• Decreased Scopes 1 & 2 emissions by 7% and increased renewable electricity consumption by 3%. These achievements keep us on track to meet our Scope 1 and 2 emissions goals, which were guided by SBTi’s standards and recommendations and are being submitted for validation by SBTi, along with a Scope 3 goal.
• Developed a supplier engagement strategy to engage suppliers representing highest impact emissions on setting climate-related targets.
• Achieved limited third-party verification of our GHG inventory, Scopes 1, 2 and 3, including our renewable energy progress.
• Joined Semiconductor Climate Consortium as a founding member.

As we move forward, we will continue to disclose our progress towards these goals and provide updates as we complete the SBTi submission and validation process.