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 2022, KLA announced a new target to reduce Scope 1 and 2 emissions by 50% by 2030 from our 2021 baseline and a target to achieve net zero Scope 1 and 2 emissions by 2050. The Scope 1 and 2 reduction goal is informed by the Science Based Targets Initiative (SBTi) Corporate Net-Zero Standard.

Progress achieved in 2021:

• Announced our goal to use 100% renewable electricity across our global operations by 2030.
• Developed a new and improved greenhouse gas (GHG) inventory baseline.
• Completed limited third-party verification of our GHG inventory for Scopes 1 and 2, Scope 3 business travel, and our renewable energy progress.
• Conducted first in-depth climate risk and opportunity assessment following the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

As we look ahead to further reduce our climate impact, we will evaluate and announce progress toward the development of Scope 3 emissions reduction goals by the end of 2023.