Applied Materials Launches Sustainable Supply Chain Initiative
July 21 2020 - 1:05PM
Applied Materials, Inc. today unveiled a major new initiative aimed
at creating a more sustainable and just supply chain for
semiconductor and display manufacturing.
SuCCESS2030 (Supply Chain Certification for Environmental and
Social Sustainability) will optimize material and parts selection,
procurement, packaging, warehousing, transportation and recycling
to reduce energy and emissions and conserve resources. The
initiative also aims to promote ethics, human rights, diversity and
inclusion throughout the supply chain.
“As part of Applied Materials’ commitment to sustainability, we
are extending our focus beyond our own operations to include our
supply chain, where we expect positive impacts will be magnified
throughout the industry,” said Stephen Gustafson, Vice President,
Operations and Aftermarket Quality. “Thank you to our suppliers for
joining us in this shared initiative.”
“The industry-leading SuCCESS2030 initiative being announced
today aligns with Intel’s 2030 corporate responsibility goals and
is core to building a responsible and sustainable end-to-end supply
chain for the future of semiconductors,” said Shaheen Dayal, Vice
President of Fab Technology Sourcing at Intel. “Together, we are
invested and share the growing sense of urgency to address broad
challenges no one can tackle alone and can only be solved by
collaborating across major organizations, industries, and
countries.”
Under the SuCCESS initiative, Applied’s assessment of supplier
performance and capabilities will now require the following shared
commitments:
- Reducing supply chain carbon emissions by moving to intermodal
shipping that reduces the industry’s reliance on air freight, with
an interim emissions reduction target of 15% by 2024.
- Transitioning the supply chain to recycled content packaging,
with a target of 80% by the end of 2023.
- 100% elimination of phosphate-based pre-treatment of metal
surfaces by 2024.
- Development of a diversity and inclusion strategy that captures
key metrics and meaningful actions to increase the percentage of
spend with women- and minority-owned businesses and increase the
representation of women and other underrepresented groups with
demonstrated improvement by 2024. Work with our trade associations
to significantly grow the pipeline of diverse talent available to
the industry by 2030.
- Compliance with the Responsible Business Alliance Code of
Conduct 6.0 and Applied Materials’ Standards of Business Conduct
and Human Rights Policy.
The initiative is part of a broad commitment to ESG principles
and targets that the company’s President and CEO, Gary Dickerson,
outlined today during a keynote address at the 50th annual SEMICON
West.
The SuCCESS initiative strengthens Applied’s ESG supply chain
strategy, which includes supporting ethical labor practices,
responsible minerals sourcing and other programs in adherence to
industry-wide doctrines including the RBA (Responsible Business
Alliance) Code of Conduct, SEMI guidelines and Applied’s Standards
of Business Conduct.
The initiative will be managed through the new Applied Materials
SuCCESS Office which will oversee metrics and conduct compliance
audits, training and coordination with participating companies.
Applied is also adding a new Sustainability category to its annual
Supplier Excellence Awards program beginning in 2021.
Joining Applied in supporting the SuCCESS initiative are key
suppliers from around the world including: Advanced Energy,
Benchmark Electronics, Inc., Foxsemicon Integrated Technology Inc.,
NGK INSULATORS, LTD., Ultra Clean Holdings, Inc. and VAT.
Supply Chain Comments
“Applied Materials’ SuCCESS initiative is aligned with our
continuing commitment to conserve resources through reduced energy
and water use and improved recycling practices,” said Yuval
Wasserman, CEO of Advanced Energy. “AE’s early participation with
Applied Materials’ initiative is consistent with our adherence to
ISO 14001 environmental management standards.”
“As an organization, we are committed to providing a safe and
respectful workplace for our employees and conducting business in a
socially responsible and sustainable way,” said Jeff Benck,
President and CEO of Benchmark. “Applied Materials is helping the
semiconductor supply chain become more mindful of how we can
continue to preserve and protect our resources, and we’re excited
to contribute to the SuCCESS initiative.”
“We welcome any measures that help us reduce our carbon
footprint,” said Kevin Chiu, CEO and President of Foxsemicon
Integrated Technology. “We will support Applied Materials’ SuCCESS
initiative by evolving our logistics mix to include a greater
percentage of intermodal shipping options.”
“Our sustainability mission is to preserve the global
environment, foster the development of industry, create a brighter
energy future and contribute to the wellbeing and happiness of
people around the world,” said Hiroto Matsuda, Sr. Vice President,
Group Vice Executive, Process Technology Business Group at NGK
INSULATORS, LTD. “Having recently celebrated 101 years in business,
we are well aligned to support Applied Materials’ SuCCESS
initiative.”
“Supply chain resiliency is about more than speed of operation
and just-in-time delivery,” said Jim Scholhamer, CEO of Ultra Clean
Holdings. “Today’s supply chain leaders recognize we have a shared
responsibility as environmental stewards that demands we pool our
innovation to overcome collective challenges. We thank Applied
Materials for leading this effort.”
“We are dedicated to using natural resources sustainably, in a
way that reduces negative impacts on the environment,” said Mike
Allison, CEO of VAT. “The Applied Materials SuCCESS initiative
serves as an important call to action for the industry to continue
to embrace responsible supply chain practices.”
About Applied Materials Applied Materials,
Inc. (Nasdaq: AMAT) is the leader in materials engineering
solutions used to produce virtually every new chip and advanced
display in the world. Our expertise in modifying materials at
atomic levels and on an industrial scale enables customers to
transform possibilities into reality. At Applied Materials,
our innovations make possible the technology shaping the future.
Learn more at www.appliedmaterials.com.
Contact:Ricky Gradwohl (editorial/media)
408.235.4676Michael Sullivan (financial community) 408.986.7977
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