Lam Research Sets New Climate Goals, Closes Inaugural $1.5B Sustainability-Linked Credit Facility
Global semiconductor equipment company Lam Research announced today new climate goals, including a 2050 net zero target. The company also recently announced the closing of its inaugural $1.5 billion sustainability-linked credit facility.
Lam’s new commitments include achieving net zero carbon emissions by 2050, and operating on 100% renewable energy by 2030. The goals were announced with the release of the company’s 2020 ESG Report, outlining Lam’s progress in its sustainability initiatives over the past year. Lam’s net zero commitment builds on existing 2025 targets to reduce Scope 1 and 2 emissions by 25% from a 2019 base.
Tim Archer, presidet and CEO at Lam Research said:
“The world’s response to the devastating pandemic has illuminated how we can transform our planet and intensify the best in humanity when we all work together towards a common goal. I could not be prouder of the incredible efforts of Lam’s workforce to deliver for our customers and answer the call from our communities in need under the most challenging of circumstances. And in that spirit, I’m pleased to announce our goals detailed in the ESG Report include operating 100% on renewable energy by 2030 and becoming carbon net-zero by 2050 to contribute to a more sustainable world.”
Last week, Lam announced the closing of its inaugural $1.5 billion sustainability-linked credit facility, with pricing features linked to the company’s performance towards its ESG goals. According to the terms of the new facility, Lam will receive a pricing adjustment if the company is above or below performance standards for annual energy savings and employee safety.
Commenting on the new facility, Dough Bettinger, Executive VP and CFO at Lam Research, said:
“Lam strives to incorporate ESG into everything we do – from our operations and workplace practices, to how we source our materials and design our products. The new sustainability-linked credit facility is part of our overall management focus on financial performance while integrating ESG principles into day-to-day operations. We believe this will also add long-term value for Lam’s shareholders.”