Act With
Purpose for a
Better World

2021 Environmental, Social,and Governance Report

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INTRODUCTION

BUSINESS AND GOVERNANCE

Contents

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESIntroduction

Our workplace

CEO message ......................................................................2
About Lam Research .......................................................3
Integrating ESG ..................................................................4
ESG goals ..............................................................................52021 ESG scores and recognition .............................6

Highlights................................................................................39
Inclusion and diversity.....................................................40
Employee engagement....................................................47
Benefits and well-being..................................................48
Learning and talent development..............................49
Employee health and safety..........................................50

Business and governance
Highlights................................................................................8
ESG at Lam............................................................................9
Materiality...............................................................................10
ESG governance.................................................................11
Decarbonizing the world, together............................13
Ethics and compliance.....................................................15
Cyber, government affairs, and tax...........................17

Product innovation
Highlights................................................................................19
Power of innovation..........................................................20
Focus on innovation..........................................................21
Customer impact................................................................24
Collaboration .......................................................................26

Sustainable operations
Highlights................................................................................30
Energy and climate............................................................31
Waste management..........................................................34
Water management...........................................................36
Employee engagement....................................................37

APPENDIX

Responsible supply chain
Highlights................................................................................53
Supply chain ESG strategy............................................54
Supply chain management............................................55
Driving supplier environmental performance.......57
Protecting human rights.................................................58
Conflict minerals.................................................................58
Supplier diversity................................................................59

Our communities
Highlights................................................................................61
Powering Breakthroughs Together...........................62
Improving quality of life...................................................63
Tomorrow’s technology leaders..................................64
Employees giving back....................................................65

Appendix
Performance summary.....................................................68
GRI index.................................................................................69
SASB index............................................................................79
TCFD index.............................................................................80
Assurance statement.......................................................82
Cautionary statement......................................................88

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Unleashing the power of innovation
together for a better world
A message from our CEO
The nature of doing business has changed. Maintaining a leadership
position has always meant producing leading edge products thatsolve our customers’ toughest problems and providing best-in-classservice and support. Today, that is no longer enough. The impacts ofbig, global challenges like climate change and inclusion and diversity
are much greater today than they have been in the past.
Climate change is having tangible impacts to businesses: Extreme
weather events can cause operational disruption and the cost ofenergy, water, and waste is increasing. We are also faced with rapid
industry growth, rising technological complexity, and a global talent
shortage with a particularly large deficit in science, technology,
engineering, and math (STEM) careers. Attracting and retaining
the workforce of the future has never been more important, and it
requires strategic investment in the right workplace policies andsocial and environmental programs.
Led by our Guiding Principle to act with purpose for a better world,
we are reimagining what is possible for our future. Conserving finite
resources, championing inclusion and diversity, and driving productsustainability efforts – simultaneous progress in all these areas isrequired to maintain leadership and strengthen the company.

Led by our Guiding Principle toact with purpose for a better world,
we are reimagining what is
possible for our future.

Our business model has evolved to reflect that ESG is now animperative, and we are committed to progress. I am proud to say that in
2021, for the first time, we were named to the North America Dow Jones
Sustainability Index, which recognizes the top 20% of sustainability
performers among the 500 largest companies in the U.S. and Canada.
We were among the first in the semiconductor industry to set a goal toreach net zero by 2050. In 2021, we took swift action to put a plan inplace with a clear roadmap and strong governance and committed tosetting a science-based target. We’re already making progress toward
this goal, with our facilities in Ohio, US; Malaysia, China, and Austria
operating on 100% renewable energy.
In keeping with integrating ESG into all that we do, we elevated Inclusion
and Diversity to our Core Values, to formally reflect what we practice
every day. We are rethinking philanthropic investments, recruiting tactics,
and workplace practices to attract and retain the best people today andimprove our STEM pipeline for the future. This includes a global, expanded
parental leave program that puts Lam at the forefront of the industry, as
well as a new On-Site and Flexible workplace policy designed to achieve
our business goals, while supporting a better balance of how we live andwhere and when we work.
The stakes are high. Achieving net zero and creating a workforce
representative of our population is a significant undertaking, on par withsome of the biggest obstacles we’ve faced in semiconductor equipment
manufacturing. At Lam, we have spent our first four decades, diligently
solving the unsolvable - and we remain committed to proving what we
believe is possible for a better and brighter future. We hope you’ll join us.

Tim Archer
President & Chief Executive Officer
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PRODUCTSUSTAINABLE OPERATIONSAt Lam, we drive semiconductor
breakthroughs that define thenext generation.

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Our customers are reaching new milestones of innovation with smaller and better-performing devices
powered by ever-more-advanced microchips. And nearly every one of these chips is built with
Lam technology. As a global supplier of innovative wafer fabrication equipment and services to thesemiconductor industry, our technology is at the core of the world’s most exciting innovations. As we helptransform the world with technology, we aspire to incorporate environmental, social, and governance (ESG)
principles into everything we do. From our global operations, to our workplace practices, to how we source
our materials and design our products, we act with purpose for a better world.

Lam Research around the world
We have 10 primary locations.
This map highlights our headquarters,
manufacturing, and lab locations.

Sherwood, OR
Manufacturing site,
opened in 2021

Tualatin, OR

6.5% Taiwan
6.1% Europe
5.9% China
2.9% Japan

Global employee population

16,300+

Manufacturing site
powered by 100%
renewable energy

Springfield, OH

Global employee distribution*

54.8% United States
8.6% South Korea
8.0% India
7.2% Southeast Asia

Villach, Austria

52-acremanufacturing andlabs campus

Gyeonggi-do,
Korea

Silfex location,
precision siliconcomponent
manufacturing

Fremont, CA
Corporate
heaadquarters, pilot
manufacturing,and labs

Home to bothmanufacturing andlab sites

Eaton, OH

Livermore, CA
2nd largest
manufacturing
site

Taoyuan City,
TaiwanSilfex location,
precision siliconcomponent
manufacturing

Lam acquired Talus
in 2021, adding to ourmanufacturing
footprint

Batu Kawan,
Malaysia

Largest manufacturingsite globally, openedin 2021*As of December 31, 2021.

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PRODUCTWe aspire to integrate ESG
into everything we do

In our workspaces
and across our
suppy chain

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Across ourglobal operations

Net zero future

Sustainable operations

Efficient products

To contribute to a more sustainable world,
we have established goals to operate on
100 percent renewable energy by 2030 andbecome net zero by 2050.

We are making progress toward our2025 sustainable operations goals inenergy savings, water conservation,
waste diversion, and greenhouse gas
emissions reduction.

We continually innovate to provide
customers with sustainable solutions, like theSense.i product family, which delivers energy
reductions and uses less raw materials in its
vertical, space-saving design.

Integrity
Our Ethics and Compliance programis rooted in our Core Values. We earn
our customers’ trust by aiming to makeeverything we do reliable and accurate. We
execute with the highest level of quality,
integrity, and sound governance.

Inclusive culture

Responsibility

Our goal is to foster a diverse and equitableculture where every person feels valued,
included, and empowered to achieve theirfull potential.

We approach our supply chain withthe same focus on human rights, theenvironment, and diversity that we apply
to our own business—and we work to holdour suppliers to these same standards.

In our collaborations

Employee well-being

Strong communities

External engagements

Our employees deliver success for Lam, and in return, we deliver the resources theyneed to thrive. We provide competitive benefits that foster professional and personal
growth and well-being.

We invest in our communities to build a betterworld for generations to come.

Through academic and industry engagement, we align the global
semiconductor technology community to accelerate innovation.

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Achieving our ESG goals
Goals guide our focus and hold us accountable. That’s why we developed 19 goals across the six major pillars of our ESG program. We have worked hard to makeprogress against these goals, and we’re proud of how far we’ve come. We aim to achieve the majority of our ESG goals by 2025, unless otherwise stated.

Governance*
GOAL

Sustainable operations*
STATUSContinue to expand our disclosure and

PROGRESS TO DATEGOAL

• Increased disclosure against

Achieve net zero emissions by 2050 bymeeting the following targets:alignment with industry-recognized

Task Force on Climate-related

frameworks and standards

Financial Disclosures (TCFD)

Product innovation*
GOAL
83% of customers by revenue set
science-based targets

STATUSPROGRESS TO DATE
• This goal was set in 2021 andprogress will be reported in our2022 report

Workplace*
PROGRESS TO DATE

GOAL

• Achieved top 20%
engagement in 2021

- Achieve 100% renewable energy
globally by 2030

• Sourced 54% renewableenergy globally in 2021

Build on our high-performance
culture with best-in-class employee
engagement at the top-tierbenchmark as measured by
our annual employee survey**- Reduce absolute Scope 1 and 2(market-based) greenhouse gas (GHG)
emissions 25% by 2025 and 46% by2030 from a 2019 baseline. Achieve net
zero operations by 2040

• Achieved 9.5% reduction in
Scope 1 and 2 (market-based)
GHG emissions

Maintain an OSHA recordable injury
rate at or below 0.4***• Realized recordable injury rateof 0.4 in 2021

Increase number of women andunderrepresented employees
across the company- Achieve 12 million kWh in total energy
savings from a 2019 baseline• Achieved 4.7 million kWh inenergy savings - 39% to goal

• Expanded proportion of
women globally by 4.8% andunderrepresented employee
groups by 15.4% in 2021

Achieve zero waste to landfill for
hazardous waste• Diverted 99% from landfill
in 2021

Achieve 17 million gallons of water savings(15%) in water-stressed regions from a2019 baseline• Saved 13.2 million gallons ofwater in water stressed regions- 79% to goal

STATUS

Responsible supply chain*
GOAL

STATUSPROGRESS TO DATE

Achieve more than 90% compliance
rate with our social and environmental
expectations across our top-tier suppliers• Exceeded our goal with 92%
supplier compliance in 2021

Engage with at least 50% of our top-tiersuppliers on environmental sustainability
opportunities• Exceeded our goal by engaging
with 73% of top-tier suppliers in
2021

Increase engagement with all suppliers
on social and environmental topics
through assessment, training, andcapacity building• Undertook a variety of engagement
activities such as one-on-one
meetings, assigned trainings, andsupplier events in 2021

80% of top direct suppliers by spend set
science-based targets by 2025 and 95%
by 2030• This goal was set in 2021 andprogress will be reported in our2022 report

STATUSPROGRESS TO DATE

Community*
GOAL

STATUSPROGRESS TO DATE

Determine key targets forlarger-scale impact aligned to a
new strategic focus• Goal achieved by launchingstrategic planning process totransform our philanthropic
identity and targets

Implement measurement ofoutcomes for key program andlarge-scale grants• Not yet started

Increase annual unique employee
participation rate from 10% to 30%• Reached 10% employee
participation in 2021

Increase volunteer hours by 33%
from 2019 baseline• Volunteer hours at 95% of2019 baseline due to COVID-19
impact*We aim to achieve goals by 2025, unless otherwise stated.
**Updated in 2021 to reflect change in methodology for measuring engagement benchmark.
***Updated in 2021 to clarify goal is at or below 0.4.

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2021 ESG scores and recognition
ESG RATINGSWORKPLACE AND COMMUNITY RECOGNITIONS• Dow Jones Sustainability Index (DJSI)—North America• 3D InCites—SemiSisterAward• CDP Climate Change Survey—B score• American Heart Association—Gold Recognition• CDP Water Survey—B score• Forbes• ISS QualityScore—Top rated in environment and governance• MSCI USA Semiconductors and Semiconductor Equipment
Index—AA rating• Sustainalytics—14.7 low risk

- Best Employers, Oregon, USA- World’s Top Female-Friendly Companies- World’s Best Employer- America’s Best Employer• Fortune Magazine—World’s Most Admired Companies• Human Rights Campaign Foundation’s 2021 Corporate Equality

CORPORATE RECOGNITION• Institutional Investor—Top Ranking for Semiconductor

Index—100%• Fortune and Refinitiv—Measure Up Inclusion & Diversity Index

industry by Sell-Side analysts for:

• The Org—The Most Gender Diverse Executive Team

- #1—ESG• Taiwan’s Flu Prevention Alliance—Silver Award- #1—Investor Relations (IR) Team
- #1—IR Professional (awarded to Ram Ganesh,managing director investor relations)• United Negro College Fund (UNCF)—Corporation of the Year

- #2—IR Program- #2—Crisis Management- #3—Chief Executive Officer (awarded to Tim Archer)

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BUSINESS AND
GOVERNANCE

We build businessresilience, customer
trust, and long-termvalue through our
ESG program.

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Governance*
We are a company where potential is realized, and where the future of technology is defined. Our impact is exponential,
going beyond what we do to what we enable—the continuous progress of society. That makes it our responsibility
to ensure that everything we undertake—from sourcing and production to how we manage our business, to how wedeliver for our customers—is executed with excellence.

GOAL

STATUSContinue to expand ourdisclosure and alignment
with industry-recognizedframeworks and standards

PROGRESS TO DATE

• Increased disclosure
against Task Force on
Climate-related Financial
Disclosures (TCFD)

To that end, we aspire to make ESG criteria part of everything we do. And when we consider the environmental andsocial impacts of our actions, we build business resilience and help raise the bar for our entire industry. We strive to
exceed our customers’ expectations and launch cutting-edge products and technologies without compromising on ourvalues or our responsibility. Amid ongoing change and continued, heightened demand for semiconductors in 2021, weare proud to have delivered with agility, compassion, and an unwavering commitment to ESG.

2021 highlights

Contributing to the UN SDGs

• Launched $1.5 billion sustainability-linked revolving credit
facility to reinforce ESG goals

We recognize the importance of the United Nations 2030 Agenda for Sustainable Development and the Sustainable
Development Goals (SDGs). These goals play an important role in building a more equitable, inclusive, sustainable
world. We have identified five SDGs as most relevant to Lam’s top material topics: #3 Good Health and Well-Being,#4 Quality Education, #8 Decent Work and Economic Growth, #10 Reduced Inequalities, and #13 Climate Action. In
this report, we are proud to share how we’re contributing to these SDGs.

• Named on the Dow Jones Sustainability Index for North
America (DJSI North America) for the first time

• Established Ethics and Compliance Steering Committee*We aim to achieve goal by 2025, unless otherwise stated.

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ESG at Lam: Delivering
a positive impact
Stacey MacNeil
We put our business to work for a better world. Our ESG strategy,
which provides a framework for our ESG investments and efforts, iscomposed of six key pillars reflective of the issues that matter mostto our business and stakeholders.
From goal setting and regular progress assessments on material
ESG topics, to investments in environmental and social responsibility
initiatives, we actively involve our leadership in the efforts we put
forward. Doing so ensures that we adopt ESG best practices tocreate a program that delivers value to all Lam stakeholders.

chief communications
officer and ESG
executive sponsor“Our holistic approach to ESG is key toproviding a positive impact to the company
and our world. Further integrating ESG
into our operations — while managing
ESG-related risks and opportunities —demonstrates our leadershipand values.”

Being transparent about our ESG strategy and performance is a
critical component in taking accountability and achieving our ESG
goals. We continue to expand our disclosure and alignment withindustry-recognized frameworks and standards and make measurable
progress toward our ESG priorities in the short and long term.

INNOVATION SPOTLIGHT

Giving ESG its credit: New financing structure links
sustainability to our bottom line
Financial considerations shouldn’t hinder the pursuit of bold ESG
goals—they should inspire them. That’s the vision behind our new
financing structure consisting of a $1.5 billion, five-year sustainabilitylinked line of credit, launched in May 2021. Over the credit facility term,
Lam will receive a pricing adjustment if the company is above or below
performance targets around annual energy savings and maintains ourhigh standard of employee safety. This connection further promotes
and engrains our ESG initiatives while providing access to potentiallylower-cost financing.

Doug Bettinger
executive vice president
and chief financial officer“Lam’s 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 stakeholders.”

Act with purpose
for a better world
OUR ESG MISSION:

We elevate human prosperity
and protect the environment inour operations, supply chain,and the products we create.

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Making an impact where it matters most
We center our ESG strategy, investments, engagements, and reporting on the topics that reflect the most significant environmental,social, and economic impacts of our business and to our stakeholders. In this report, we refer to these as “material” topics1. To identify
those topics, we conduct an ESG materiality assessment every three to five years, or when notable shifts happen in our business.
In our most recent assessment, conducted in 2018, we identified 13 material topics across six strategic pillars. These pillars provide thebasis of our ESG strategy and priorities.

Strategic pillars
Business and governanceMaterial topics• Leadership participation in ESG

Integrate ESG into our business operations; foster
ownership and accountability; set strategy and goals

Products and customers• New product pipeline

Innovate with ESG in mind; be a partner of choice
for supporting our customers’ ESG goals; design forenvironment principles• Product compliance• Product safety• Regulatory compliance and emerging regulations

Sustainable operations• Energy efficiency

Minimize our environmental impact throughinvestments in energy, water, waste, and greenhousegas emissions reductions• Waste and recycling• Greenhouse gas emissions

Our workplace• Employee wellness and professional growth

Build an inclusive, diverse, and engaged workplace
while achieving top performance in health and safety• Inclusion and diversity

Responsible supply chain
Ensure an ethical and responsible business ecosystem
focused on human rights and the environment

Our communities• Health and safety• Supplier screening and managing negative impacts
within the supply chain• Community engagement and charitable giving

Be a responsible corporate citizen with programs focusing
on transformative learning, resilient communities, andinclusive societies
The identification of a topic or other matter as "material" for purposes of this report does not and should not be interpreted to mean that it is material for any otherpurpose, including for the purpose of our financial statements or the documents we file with the U.S. Securities and Exchange Commission.
1

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Lam’s ESG governance structure and primary responsibilities

Given the breadth of ESG issues for a company of our size and reach, oversight of ESG issues occurs
within our existing Board governance framework. Our CEO and members of the CEO staff participate in
our ESG Executive Steering Committee. And members of our management team provide regular updates
to the Board and its committees and engages them to discuss ESG strategy, gain alignment on goals, andreport on progress.
In 2021, we formed a new net zero leadership team that is responsible for working with business units
to integrate climate considerations into decision-making processes, driving progress on our net zerostrategy, and tracking GHG performance on our climate goals.
Our Board believes that board diversity is important to serving the long-term interests of Lam’s stockholders.
To underscore this, we adopted a change to Lam’s Corporate Governance Guidelines in 2021 that reflects
the commitment of the Board’s Nominating and Governance Committee, when identifying potential
director candidates outside the Company, to actively seeking out qualified candidates who reflect diverse
backgrounds, skills and experiences. Under our current Corporate Governance Guidelines, diverse
backgrounds are defined to include diversity of gender identity, LBGTQ+ identity, race, and ethnicity. We
draw from this diverse pool from which Board nominees are chosen, and we instruct any third-party searchfirms retained for a related search to include such candidates for consideration. Learn more about inclusionand diversity at Lam in the Workplace section of this report.

MANAGEMENTGood governance—it’s the foundation of Lam’s business and critical to our success. This makes it
imperative that the highest levels of our leadership are involved in our governance approach. Ourleadership emphasizes financial performance while integrating ESG principles into day-to-day operations.

IMPLEMENTATION

Leading with an ESG lens

OVERSIGHT

LAM RESEARCH BOARD OF DIRECTORS
Overall ESG oversightNOMINATING AND
GOVERNANCE
COMMITTEECOMPENSATION AND
HUMAN RESOURCESCOMMITTEE

ESG priorities

Workforce-related issues

AUDIT
COMMITTEE
Ethics and compliance andinformation security

ESG EXECUTIVE STEERING COMMITTEE
Guides ESG strategy, approves and supports initiatives, drives accountability

ESG LEADERSHIP TEAMNET ZERO LEADERSHIP TEAM

Proposes goals, develops andexecutes strategy, and embeds ESG into
operations management system

Drives progress toward
net zero goal

TOPIC-SPECIFIC WORKING GROUPS
Executes on key issues

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXEngaging our stakeholders
Through our materiality assessment and other activities, we
engage with a diverse group of stakeholders around the world,
including our employees and stockholders, the communities
we work in, and the organizations that promote the sustainablegrowth of our industry. Their valued perspectives inform our
ESG strategy and goals.

How we engage:

Employees

Community• All employee meetings• Interactions through community• Employee resource groups• Employee surveys• Inclusion index• Performance andcollaborations and volunteerism• Participation in conferences and forums• Philanthropic investments

Policymakers

Suppliers• Direct engagement through our Global• Annual ESG supplier surveys• Annual Supplier Day (withGovernment Affairs group• Trade organization participation

Excellence Awards)

such as the National Associationof Manufacturers, SEMI, and the
Semiconductor Industry Association

development discussions• Monthly supplier scorecard reviews• Regular Supplier Town Halls• Strategic business reviews as needed• Professional development

Customers• Customer Support BusinessGroup interactions• Global Customer Operations
engagement and support• Industry conferences• Regular business review meetings

Industry organizations• Conference participation• Innovation collaborations• Memberships

Stockholders• Annual meeting of stockholders• Participation in conferences and forums• Quarterly earnings conference calls• Regular calls andin-person meetings

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Decarbonizing theworld, together
Addressing climate change is one of the biggest challenges the world faces today,
and we all have a role to play. Lam’s own R&D and manufacturing activities, and the
manufacturing and transportation of goods in our supply chain, have climate impacts.
So do our products when they are in use by our customers. Therefore, when we
accelerate our own climate action, we help our customers do so, too.

We’re ready to prove it

We plan to achieve our energy and climate goals by activating multiple
strategies: investing in renewable energy and energy efficiency whileworking with our suppliers and customers to reduce upstream anddownstream emissions. Supporting our progress will be several
cross-cutting tools and practices:• Net zero governance and leadership support, including a net zeroleadership team and cross-functional working groups

When it comes to mitigating the impacts of climate change, time is of the essence. In
2021, Lam announced a net zero goal to reduce GHG emissions along a science-based
trajectory. Net zero is a climate action goal to balance the greenhouse gas emissions
going into the atmosphere with the reduction and removal of gases from it. As we work
toward this goal, we aim to enable our customers and suppliers to reach their own
decarbonization goals, while supporting Lam’s cultural imperatives, corporate strategy,
and business growth ambitions.
We’ve developed a net zero pathway that details how Lam’s business units, productteams, and supply chain vendors will contribute. Key milestones along our journey to net
zero include:• Funding mechanisms, which are embedded into Lam’s financial
decision-making processes• Careful management of current and projected emissions data
• Internal communications and employee engagement to help us
build momentum• Standards and frameworks, such as SBTi and TCFD, that enhance
Lam’s credibility among external stakeholders• Close collaboration with our customers and suppliers

Net zero roadmap• Achieve 100% renewable energy

Announced
science-basedtarget (SBT)
intention and net
zero pathway

2021• Reduce Scope 1 and 2 (market-based)emissions by 46% from a 2019 baseline

Achieve net zero
emissions• 95% of top direct suppliers by spend
set SBTs

2025

2030

2040

2050

• Reduce Scope 1 and 2 (market-based)emissions by 25% from a 2019 baseline• Achieve net zero operations(Scope 1 and 2)• Achieve 12 million kWh in totalenergy savings• Achieve absolute reduction
in supply chain emissions(goal to be set in the future)• 80% of top direct suppliers by spend
set SBTs• 83% of customers by revenue set SBTs

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Assessing climate risk
Like all companies, Lam faces risks related to climate change. These risks include disruptions
to our manufacturing facilities due to extreme weather events and laws and regulations
imposed due to climate change concerns. In 2021, we worked with a third party to undertakea deeper analysis of the climate risks and opportunities that could have an impact on Lam.
These include:

Risks

Opportunities

As we learn more about the potential likelihood and impact of these risks, we will continue to share
our management and mitigation efforts with stakeholders. The Appendix to this report includes a fullinventory of our disclosures to the TCFD, the Sustainability Accounting Standards Board (SASB), and
the Global Reporting Index (GRI). Our alignment with the following key TCFD categories is as follows:
TCFD CATEGORYALIGNED PRACTICES AT LAM

Metrics and Targets

2025 and 2030 GHG reduction goals aligned with Science Based Targets
Initiative (SBTi) methodology• Changing customer expectations• Expansion of end-use markets

Scope 3 emissions inventory to understand impacts in the value chain• Competitors developing lower-impact• Improving resilience of2050 goal to achieve net zero across all emissions scopes, with interim goals for2030 and 2040

products• Operational disruptions from flooding,natural hazards, rising temperatures, and/or
water stress• Natural hazards leading to supply chain

disruptions and/or preventing access to theoperational workplace• Regulation of Lam’s direct operations,business operations throughasset hardening

Risk Management• Operational footprint reduction• Reduced resource consumptionof sold products

Strong governance to manage and escalate risk to appropriate levels
Strategy

Leadership involvement and oversight on ESG strategy

Governance

Board-level ESG oversight
Regular ESG reports to the Board and the Nominating and Governance Committee

customer operations, and/or raw materials(e.g., carbon pricing)

Net zero leadership team and cross-functional working groups• Reputational impacts from poor

Annual net zero objectives integrated into corporate accountability systems
and review

performance on external climate-related
engagements• Water stress impacting major

Multiple leading enterprise risk management practices

ReportingConsistent climate-related metrics reported to CDP and in our annual ESG Report

customer operations

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Conducting business with integrity
Our business has thrived for more than 40 years by embracing innovation whileremaining true to our Core Values. Our customers choose us because they trust our
products, our people, and our performance. We aim to earn their trust by ensuringthat what we do is reliable, accurate, and executed with a high level of quality,
integrity, and sound governance.
Our Ethics and Compliance (E&C) program sets the standards and principles for
how we do business. Our program is designed to meet evolving requirements andencompasses the following major areas: risk management, policies and procedures,training, communications, and investigations. Our chief compliance officer, whoreports to the chief legal officer, with dotted-line reporting to the Chair of the Audit
Committee of the Board, manages the E&C function and leads a global team. In
2021, we formed an E&C Steering Committee to further strengthen our program.
This Committee provides operational guidance on our E&C program and promotesan ethical and compliant culture throughout the organization by supporting the E&C
function in achieving its program requirements.

Our Core Values
Our culture is built on our Core Values. These values underpin our commitments
to sustainable growth and to working together for a better world. In 2021, weadded two new core values: Agility and Inclusion and diversity.

Achievement

Protecting and enhancing our culture promotes an ethical working environment
for our employees. Last year we launched a global ethics culture employee survey
to identify and measure strengths and areas of opportunity. The survey results,
which were communicated at an all-employee meeting, will be used to prioritizeenhancements to our program.

Opencommunication

Honestyand integrity

Innovation and continuous
improvement

Mutual trust
and respect

Ownership
and accountability

Teamwork

Kelley Kinneysenior director, ethics
and compliance“When faced with a challenging situation atwork, our employees ask themselves not justthe foundational question of whether the law
and our policies permit the activity, butalso whether the conduct is ethicaland consistent with ourCore Values.”
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Risk management

Investigations

Our dedication to continuous improvement means we assess internal and external risks,refine our programs, and adjust our goals. As we operate globally and continue to grow,we are exposed to a changing regulatory landscape, as well as bribery and corruption
challenges, which make enhancing our risk management program a priority.

At Lam, employees have the right and responsibility to raise concerns to their managers, senior
management, human resources, and E&C. Employees and third parties, including contractors,
suppliers, and customers can make a report by phone or through the web by using our Ethics Helpline.

Over

The Ethics Helpline is operated by an independent third party and is available to anyone who wants to
ask a question about, or report potential violations of the GSBC, other policies, regulations or laws. It is
accessible through both our external and internal websites, and interpreters covering over 75 foreign
languages are available for phone submissions. Concerns may be reported anonymously, where
allowed by law, and all reports are treated confidentially. Our Reporting Concerns Policy provides
guidance to employees on raising concerns on a variety of issues, including financial concerns.

of our employees completed
our 2021 GSBC training*

We take a risk-based approach to due diligence and we have strengthened our third-party
risk management through our compliance questionnaire and Supplier Code of Conduct.

Policies and procedures
It’s not just what we do, but how we do it that matters. Our employees are dedicated toa values-driven culture. To reinforce this, we created our Global Standards of BusinessConduct (GSBC), which outline expectations for ethical workplace behavior.
The GSBC address various issues such as: protecting confidential information, prohibiting
bribery and corruption, and giving or receiving gifts, meals, travel, and entertainment. They
also cover workplace conduct issues such as harassment, discrimination, and conflicts ofinterest created by relationships. We regularly review and update our GSBC so that theyremain relevant to our business. Additional policies and procedures provide further guidanceon specific ethics and compliance areas, including:• Anti-bribery and corruption• Anti-harassment

99%

E&C investigates allegations involving alleged kickbacks, bribery, trade secret theft, insider trading,conflicts of interest, corporate card and expense abuse, among other issues. In 2021, our E&C teamshared with employees its investigations reporting data for 2021, including trends compared to2020, report volume, claim types, anonymous reporting rate, the substantiation rate at which E&C
concluded a violation occurred, and aggregated corrective action taken for substantiated cases.

*Employee completion rate was calculated by excluding: 1) employees who were on leave of absence during the reporting period; or 2) employees who left the company during thereporting period before completing the training. The reporting period was from November 2021 to March 2022.

• Conflicts of interest• Conflicts of interest created by relationships• Gifts, meals, travel, and entertainment• Insider trading• Reporting Concerns

Training
We are focused on training our employees to ensure they are empowered to make ethicaldecisions. Employees are required to complete an annual online training course thatreinforces their understanding of selected topics covered by the GSBC. We exceeded
99% completion rate* for this training. We also deliver targeted training sessions to further
increase awareness of our policies and processes. In 2021, E&C delivered more than 50
virtual training sessions to leadership teams, new hires, and employees whose role and/or
location put them at higher risk.

Communications
We work diligently to communicate practical guidance and lessons learned frominvestigations with all employees. In 2021, we held “Ask Me Anything” sessions with our chiefcompliance officer. We also distributed four compliance bulletins providing guidance on ourpolicies and specific risk areas, so our employees have the tools and knowledge to makeethical decisions.
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Protecting data and intellectual property

Government affairs

Safeguarding our corporate, employee, customer, and supplier data is a top priority
for us. It is essential to maintaining our business and retaining stakeholder trust.
Our global information security strategy proactively evolves in real time to address
emerging threats, minimize cybersecurity risk, and incorporate the latest bestpractices and technologies. In 2021, we continued to expand and strengthen our
information security program with a focus on protecting Lam’s intellectual property.

Sound public policy is imperative to fulfilling our mission to drive breakthroughs thatdefine the next generation. We pursue a collaborative approach to policy engagement,
working alongside our industry, supplier, and customer stakeholders to advocate for ourpriorities at the local, state, and federal levels. We work to engage the policy process
in the areas of taxes, trade, export control policy, research and development, business
operations, and other areas key to our business strategy. This engagement is critical toensure that the interests of our customers, employees, and stockholders are properly
represented at all levels of government.

Our program is led by our chief information security officer, who reports on aregular basis to the Audit Committee and the full Board. To continually improve
our program, we collaborate with world-class industry peers and global security
researchers, and hold International Standards Organization (ISO) 27001
certifications for information security for nine sites. In addition, we screen suppliers
for information security controls that protect our information as well as that of our
suppliers.
Employees also play a critical role in preserving information security. We educate
employees on cyber threats, and all employees participate in mandatory information
security and privacy training each year. We also conduct periodic tests of random
user populations to determine which users are vulnerable to real attacks andreinforce security awareness training. In 2021, we did not experience any cyberincidents that resulted in a material adverse effect, nor any losses or breaches ofcustomer data that resulted in a material adverse effect.

Our Global Government Affairs (GGA) group, led by our vice president of GGA, directs
these efforts. Our lobbying and political activities are governed by our Global Standardsof Business Conduct, and our Political Activity and Government Affairs Policy. As amatter of company policy, Lam makes no direct political contributions of any kind topolitical parties or candidates, nor does Lam engage in indirect political spending, suchas through its supply chain, consultants, or third-party political organizations such as
501(c)(4) entities. We remain active in various business and trade associations thatalign with our company imperatives, such as the National Association of Manufacturers,
SEMI, and the Semiconductor Industry Association. Some portion of our tradeassociation dues may be used, by the associations, for political advocacy efforts. Lam
Research does not engage in undisclosed political spending, such as contributions
above the cost of our membership dues to trade or business associations for politicalactivities. For more details, please refer to our Public Policy Engagement and Political
Activity statement located in the Corporate Governance section of our website.

Global taxation

Pillars of our information security program
PRODUCT SECURITY AND ENGINEERING
focused on driving enhanced security in products andapplications development
GOVERNANCE, RISK AND COMPLIANCE,
AND IDENTITY ACCESS MANAGEMENT
focused on risk management, compliance, and identity
governance for internal/external users and access control
SECURITY OPERATIONS CENTER
responsible for detecting, analyzing, and responding topotential cybersecurity threats

For all types of taxes, our approach is to consistently comply with legal, regulatory,
and internal control requirements while supporting our business and commercial
strategy. Our approach to global taxation is intended to ensure we:• Adhere to all applicable global tax laws, filings, and reporting disclosures• Account for tax risks in accordance with the applicable accounting standards andhave internal controls in place over our tax reporting processes• Align our transfer pricing policies with the guidelines of the Organisation of
Economic Co-operation and Development (OECD), as well as with all of thejurisdictions in which we operate• Apply the arm’s length principle when conducting intercompany transactions
We have a network of internal and external tax and finance professionals who areknowledgeable in various direct and indirect taxes and who monitor ongoing tax law
and business changes, so that we may adapt processes and deliverables accordingly.
This network, along with our framework regarding internal policies and controls,
seeks to ensure the complete and accurate communication of tax positions and risks
through established governance and reporting processes to our management andBoard of Directors.
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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXPRODUCTINNOVATION

We enable ourcustomers to reach
new heights.

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Product innovation*
GOAL

STATUS

83% of customers by revenue
set science-based targets

In a market that demands ongoing innovation, big ideas are priceless. From initial
product design to installation, we positively impact worldwide technology developmentby thinking critically, challenging assumptions, and defying conventions. In turn, we
help our customers achieve what was once thought impossible.
We develop products and solutions with the belief that business success includes
making a positive impact on society and the planet. For us, that means thatenvironmental impact and social responsibility inform our product design andresearch and development, and that we accelerate innovation through collaboration.
In 2021, we continued to deliver smarter and faster solutions that increase value,
lower environmental impact, enhance product safety, and extend product life.
When it comes to sustainable product performance, our net zero strategy pushes
us even further. Through it, we intend to accelerate the integration of environmental
considerations into the design, manufacturing, delivery, and performance of our
products to help us meet our carbon reduction goals.

RELEVANT SDGSPROGRESS TO DATE

• This goal was set in 2021 andprogress will be reported inour 2022 report

2021 highlights• Funded research collaborations at 23 universities in five countries
through our Unlock Ideas program• Launched the Elevate Ideas program to accelerate product innovation• Hosted our Engineering & Technology Conference Virtual Experience
for more than 1,200 Lam technical community members*We aim to achieve goal by 2025, unless otherwise stated.

In 2021, we continued to deliver smarterand faster solutions that increase value,
lower environmental impact, enhance
product safety, and extend product life.
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Unleashing the power of innovation
together for a better world
What we do

How we do it

Lam products and services are a catalyst for progress. We enable:

Our vast range of products
and solutions include:

Smart cities that
operate efficiently andimprove quality of life

Energy efficient cloudcomputing servers

Computers and phonesthat connect us

Deposition

Metal Films
Dielectric Films
Film Treatment

Critical medical devices andtechnologies that save lives

Electric vehicles that support
the transition to cleaner,renewable energy sources

Etch

Conductor Etch
Dielectric Etch
Through-Silicon Via (TSV) Etch
Selective Etch

Strip & Clean

Wet Clean
Dry Plasma Clean

Customer Support

Advanced Equipment
and Process Control

Mass Metrology
Integration Modeling Software

Service
SparesUpgradesReliant Systems™
Training

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PRODUCT

We focus on innovation
We drive semiconductor breakthroughs that define the next generation. In relentless pursuit ofthis mission, we continuously innovate and connect technologies—artificial intelligence, smart
manufacturing, big data, and others—to power more productive, responsive, and connected
devices and solutions. We hold ourselves to the highest standards and reliability so thatwhen we do what’s never been done, we don’t stop until we ensure success is achievable andrepeatable at scale.

Inspiring an innovation culture
There’s no innovation without experimentation, and breakthroughs aren’t often achieved alone.
When we innovate, we drive value, for ourselves and for our customers. We achieve this through:

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

Annual R&D spend

19% increase fromFY20 to FY21

OUR COMMUNITIES$1,200,000

APPENDIX$1,493,408$1,500,000

USD (in thousands)

2021 ESG Report$1,191,320$1,252,412$900,000$600,000$300,000• Significant investments in R&D• A culture that embraces innovation and teamwork• Programs and initiatives designed to inspire new ideas and ways of working• Close, strategic collaborations with our customers, universities, and other stakeholders$0

FY2019FY2020

FY2021

Fiscal year
Note: Unless noted as fiscal year (FY), all the data in this report refers to the calendar year.

In 2021, we launched a campaign to celebrate our employees’ innovation successes
and show that innovation is everyone’s business. This campaign featured 35 stories
that included 71 Lam employees from around the world. Select stories are featured as“Innovation Spotlights” within this report.

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACE

Enabling Industry 4.0

With each industrial
revolution, the rate ofchange has increased.
At Lam, we don’t justwitness this speed:
we enable it.

Industry 4.0 (i4.0) is a new phase in the industrial revolution that focuses heavily
on interconnectivity, automation, machine learning, and real-time data. Even
more so than the previous revolutions, i4.0 is transforming the way people live
and work. Industries ranging from medicine to transportation to agriculture arereaping the benefits of machine intelligence.
To continue this transformation, the semiconductor industry must rapidly innovate.
We need to move faster to design equipment, develop processes, and increase
production yields. Lam is meeting these imperatives. Our i4.0 Steering Committee,
led by our chief technology officer (CTO) and leaders across our business,guides the implementation of i4.0 across Lam. The committee focuses on strategic
initiatives involving the connectivity of data, optimized workflows across theentire supply chain, human-machine interfaces, and intelligent systems that will
create more time for people to focus on innovation.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Higher productivity, lower footprint
We strive to be the partner of choice for supporting ourcustomers’ ESG goals. Two recent innovations that deliver on thisobjective include Dry Resist and the Sense.i product family.
• Dry Resist uses dry photoresist technology to deliversignificant improvement in extreme ultraviolet (EUV)
lithography resolution, productivity, and yield. By using
five to ten times fewer chemicals and half as much energy
to create the same result, Dry Resist saves resources andcosts customers less.

• The Sense.i™ product family increases energy efficiency byenabling customers to reduce the radio frequency power
used by 10% to 20% for each wafer etched. Using lessmaterial is also significant: with new design and advanced
manufacturing approaches, we eliminate 15,000 pounds ofaluminum raw material per Sense.i™ tool, the equivalent of
1.5 million pounds of aluminum per year. Its vertical design
results in less space per tool within a fab, creating thepotential for a smaller factory footprint.

INNOVATION SPOTLIGHT

Bundle up: Redesigned cables streamline a tedious task
While attending a training at our Tualatin, Oregon facility, Lohith Shetty—a mechanicaldesigner from Lam India—noticed process module cables being installed one-by-one.
Deciding that time-consuming task needed an upgrade, he developed a prototype ofa new cable bundling tool. Used during the design process, the tool groups cables byrouting path and signal while preparing them for manufacturers. Lam teams receive thebundles ready to install, cutting time by 40 percent while improving accuracy.

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Vahid Vahedi
senior vice president
and general manager
etch business unit

“We believe there is a lot to uncover at theintersection of innovation and productsustainability. We actively collaborate with ourcustomers to identify the high value opportunities
that reduce the environmental impact ofour tools and support a moresustainable semiconductor
industry.”

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Sustainability drives product innovation

The product path to net zero

Our ambition to drive breakthroughs comes to life with our net zero goals. We see thetransition to a net zero economy as an opportunity to mitigate the worst impacts of climatechange while spurring product innovation and creating competitive advantage for Lam, andmost importantly generating new value for our customers.

Lam’s Product Innovation Working Group is developing a net zero roadmap to achieve
meaningful energy and GHG emissions reductions while meeting business growthobjectives. To inform this roadmap and prioritize top emissions and consumption areas, weare currently conducting a data baseline and assessment of environmental and ESG-related
elements in current product designs. In conjunction to establishing our technical roadmap toreach net zero, we also intend to engage with our customers on their own emissions reduction
journeys. To that end, we are aiming for 83% of our customers by revenue to set a sciencebased target by 2025. Read more about Lam’s decarbonization efforts and path to net zeroin Business and Governance.

Critical to achieving this vision is designing our products with climate action in mind. At
62%, the majority of our total greenhouse gas (GHG) footprint lies in the product-use phase,so further integrating energy efficiencies and carbon reductions into product design andengineering processes while building on previous green accomplishments is critical.
Currently, our approach to reducing energy use is twofold: productivity improvements (reducing
the amount of energy consumed in making each wafer) and pure energy savings (building
our equipment with more energy-efficient heaters, radio frequency power sources, andother components). In 2021, we introduced new and also improved etch products to deliver:

Designing with the planet in mind

• Up to 15% improved generator efficiency on several toolsets for NAND and• Equipping Lam product designers with the knowledge to discuss the environmental

foundry logic• 30% to 50% improved clean times via chamber modifications• Up to 80% decreased tool usages of helium
Since 2015, we have also achieved a cumulative reduction in energy use of approximately
35% in multiple deposition product lines and a 25% reduction for our EOS® wet clean
product lines. Our deposition products have environmental features offering up to 9%energy reduction by adding Eco pump and scrubber modes, optimizing exhaust flows, andadding more efficient chiller options.

We have begun to explore Design for Environment (DfE) and lifecycle assessment
methodologies to reduce the environmental impact of our products. In 2021, we
conducted a series of workshops focused on:
impact of specific products• Developing a methodology and tools to quantify environmental improvements and toevaluate past and future product design changes• Creating a repeatable environmental impact framework for use on future products
In the future, our product teams will leverage the findings of these workshops as we
refine existing products and design new ones.

Leading product safety in our industry
Our product safety engineers ensure that the products and services we deliver are safe for
their intended use and meet regulations and standards in the markets we serve.
We also advance product safety best practices in our industry through collaboration withcustomers and industry peers. Lam helps lead the SEMI Equipment Suppliers group toaddress new product regulations impacting the industry. For over 20 years, Lam has worked
with stakeholders to develop, implement, and continuously improve the SEMI EHS Guidelines
for Semiconductor Manufacturing Equipment. These standards are broadly used acrossthe semiconductor industry and other industries to minimize hazards related to equipment,
facilities, and work environments.

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Delivering customer impact
Our customers include leading semiconductor memory, logic, and specialty technology chipmakers. Together, we prove thatdevices with ever-greater performance are possible. We aren’t satisfied with good enough. We hold ourselves to the highest
reliability and quality standards. And we continuously improve to build a competitive edge.

Our commitment to quality
At Lam, we embrace quality. We don’t aim to just meet customer requirements; we strive to exceed their highest expectations.
Our Quality Leadership Team, a cross-functional senior management team, drives our design teams to ensure that safety
and quality are designed into every product, and that we react quickly for needed improvements to existing products. We arecommitted to deliver quality through systematic and continuous improvement of our processes. We are also certified under

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

By the end of 2021, our installedbase was approximately

75,000chambers with a dedicatedservice team to maintain those
tools for maximum productivity.

ISO 9001, an international standard that provides a framework for an effective quality management system.

Elements of our Customer Support Business Group(CSBG) strategy
SERVICE
Customized service and software solutions that enhance productivity
throughout the product lifecycle.
SPARES
High-quality, low-defect consumable and non-consumable spare parts
designed to balance performance, availability, and cost of operation.
UPGRADES
Technology and productivity upgrades that increase productivity,
reliability, and efficiency and reduce lifecycle costs.
RELIANTTM SYSTEMS
High-performance new and refurbished tools at 200 mm and 300 mm
that allow customers to extend the productive life of fabs, increasing
production capacity while decreasing waste.
TRAINING
Technical training that develops customer knowledge and technicalexpertise through expert instruction and training courses for both
hardware and software.
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Enabling customer successTo help our customers succeed, we must meet their needs today while anticipating what they’ll need tomorrow. CSBG provides
solutions throughout the equipment lifecycle that help customers improve productivity and get the most out of their capital
investments. Enabling customers to extend the life of their existing equipment is an important aspect of the CSBG strategy. We
do this by offering spares, upgrades, and product refurbishment, as well as Advanced Services that combine tool data, software,and expertise to help optimize tools beyond the process results they deliver.

Extending the value of our products
Enhanced productivity. Extended product lifetimes. Our customers expect it, and we deliver. CSBG provides refurbishedprevious-generation equipment for applications that do not require the most advanced wafer processing capability, avoiding theenvironmental impacts of manufacturing a new tool.
Our spares offerings include the reuse of high-value spare parts such as electrostatic chucks, RF hardware, and showerheads
through a variety of re-cleaning, repair, refurbishment, and re-coating services. Parts lifetime extension, enabled by re-cleaning
services, translates to approximately $400 million of reduction in materials consumption per year. Parts reuse enabled by repair
and refurbishment services translates to approximately $150 million of reduction in materials consumption per year.

Achieving faster technology transitions with Equipment Intelligence™
Customer demand for increasingly faster cycles of learning and lower cost of development and production are accelerating the
adoption of i4.0 in semiconductor manufacturing. We address these demands through our Equipment Intelligence™ solutions.
Equipment Intelligence™ uses machine learning, artificial intelligence, and big data, combined with our equipment and processexpertise, to deliver improved productivity, efficiency, and performance for our customers, all while using fewer resources andgenerating less waste.

Enabling next-generation technologies with additive manufacturing
We leverage additive manufacturing (AM) as an innovation driver to enable our customers to build smaller, faster, more powerful,and power-efficient electronic devices for everyday use. AM aligns with our mission to continuously seek new technologies thatpush the limits of product design and manufacturing by allowing us to transition the production of parts typically manufactured
by subtractive methods, to higher performing, innovative designs.

Continuously improving product performance
CorvusTM technology, available on our etch products, is a great example of technology innovation to
reduce our products’ environmental footprint inside the customer fab. Corvus automates maintenanceso that manual intervention is only needed yearly rather than weekly or monthly. At each of thosemaintenance events, parts are cleaned using a variety of chemicals and acids to restore the chamber
to a pristine condition. Many of those parts are sent offsite to special facilities for cleaning. By using
innovation to extend the productivity of our etch chambers, Corvus is a technology that allows ourcustomers to achieve a 66% reduction in yearly chemical usage related to system maintenance.

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Going further together
Complexity excites us. Collaboration drives us. Lam’s Tech Vision is to develop solutions for grandchallenges. Collaboration across the global technical community helps make that vision possible.

Technology Vision

ACCELERATEINNOVATIONDISCOVER
TOGETHERSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Unlock Ideas
All breakthroughs begin with an idea. Since 2015, our Unlock Ideas program
has supported the testing of novel ideas through an annual call for research
proposals that address challenges in the semiconductor industry. Through thisprogram, the Lam global technical community and university faculty collaborate
to submit proposals for the opportunity to receive a monetary donation to test
and advance those ideas, which can relate to technologies across softwareand controls, subsystems, automation and robotics, process and materials,
productivity, and sustainability. The annual Unlock Ideas and Elevate Ideas
programs accounted for approximately 20% of Lam’s academic research fundingin 2021. Unlock Ideas initiated 161 proposals funded by more than $4 million inawards over the past seven years. In 2021, Unlock Ideas funded research at
23 universities in five countries led by employees across five Lam offices globally.

61

university collaborations
across 15 countries

REALIZEOPPORTUNITY

Our Tech Vision approach has two components:• Educational opportunities and events that embolden our technical community to shareknowledge, collaborate, and spark new ideas• Internal and open innovation programs that leverage external collaborations—enabling better
solutions and faster cycles of learning
In 2021, most of our traditionally in-person events were held virtually due to the ongoing
COVID-19 pandemic. While we missed being together in person, virtual formats enabled us toincrease the participation size and global reach of our events.

Engaging with universities around the world
In the pursuit of proving what’s next, we need the strongest and smartest on our side. So when it
comes to defining the future of technology, our collaborations with global universities play a criticalrole. We invest in a variety of university research projects to accelerate innovation and provide us
with a pipeline of highly skilled talent. Additionally, our university engagements include capstone
project sponsorships, scholarships, fellowships, thesis awards, scholarly competitions, events, andmembership in research consortia.

In the spirit of collaboration and shared insights, we hosted our University
Collaboration Showcase in August 2021 to share outcomes of 2020 Unlock Ideas
projects with our global technical community and give employees the opportunity
to learn from our academic research collaborations. Further building on the
program, we hosted our inaugural Unlock Ideas Showcase in November 2021.
The virtual event featured a panel discussion on Lam’s collaboration on research
projects with universities in Korea and was followed by a session on career
opportunities at Lam Korea. We also piloted the Elevate Ideas program to bridge
the gap between Unlock Ideas feasibility and product group development. Elevate
Ideas provides an opportunity for continued funding of successful projects thatshow promise in accelerating innovation in the semiconductor industry.

John Chen
director of technology,
Silfex“Unlock Ideas gives Silfex employees
the opportunity to try disruptiveideas, learn from one anotherand think deeper about complex
challenges and solutions.”

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACEAt the forefront with industry collaborations and events that inspire
Open innovation and collaboration can deliver big rewards, so we engage with our industry
peers and external experts through a variety of events and programs throughout the year. We
also host several innovation programs and events that encourage our employees to connect,learn, innovate, and be inspired.

Stories can inspire
innovation in work
and in life, so we holda regular companywide Innovation
Book Series with
virtual and regionalgroup discussions.

Innovation and technical seminars
Our Seminar Series, sponsored by the Office of the CTO, is an opportunity for our engineeringcommunity to share work with peers. In 2021, we hosted 46 technical seminars attended by
7,400 participants.
Through our Innovation Speaker Series, we invite distinguished thought leaders to present
their latest ideas and findings. Our 2021 Innovation Speaker Series featured:• A discussion between Pedro David Espinoza, author of Differences That Make a Difference:
How Organizations Succeed by Focusing on Innovation through Inclusion, and Lubab
Sheet-Davis, vice president of strategy and innovation at Lam, on how diversity fuels
innovation• A roundtable focused on how chip startups are innovating in memory and compute to enableartificial intelligence with CEOs from three Lam Capital portfolio startups

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Startup Pitch Competition
Technology and innovation play an important role in creating a moresustainable economy, which is why in 2021 Lam Capital teamed up with eight
other SEMI member companies to seek out and support innovative startups tohelp solve our industry’s sustainability challenges faster, with a focus on:• Energy efficiency at tool, manufacturing process, and supply chain levels• Water sustainability technologies to increase manufacturing process efficiencies,

reclamation, reuse, and restoration in industrial treatment centers• Material usage and sustainability, including alternative chemistries for wafer

processing, materials recycling, and waste stream abatement

The participating companies selected 18 startups to receive coaching by Lam andother industry experts on productization options and integration considerations
within the semiconductor industry. In 2022, finalists will pitch their innovations to
the world’s leading semiconductor companies and clean-tech investors.

• A keynote by Shellye Archambeau, author of Unapologetically Ambitious: Take Risks,
Break Barriers, and Create Success on Your Own Terms, on taking risks and failing fast

Tech Scouting
Our Tech Scouting open innovation program identifies and co-develops technologies withthird parties to drive innovation and growth, further enabling our product groups to deliver
the highest-quality, highest-performing products. Tech Scouting focuses on prioritized
technology needs from our business units, aligned with our Tech Vision. Tech Scouting
remains an important part of our innovation strategy to leverage technologies outside of
the semiconductor industry for speed to solution and competitive differentiation.

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Nearly7,500
employees attended our technicaland innovation seminars in 2021

Engineering & Technology Conference
Our annual Engineering & Technology Conference brings together
members of the Lam global technical community to participate in
specialized learning opportunities that build skills and accelerate
new ideas. In 2021, we hosted the event virtually and thus increased
participation from 500 to more than 1,200. We collaborated with
two internationally recognized leaders in broadcast media andgaming design to create an immersive, virtual world for attendees
and optimized the broadcast for a global audience, running it
continuously for 48 hours across global time zones.

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXSUSTAINABLE
OPERATIONSThere’s agreener way.

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Sustainable operations*
GOAL

STATUSPROGRESS TO DATE

Achieve net zero emissions
by 2050 by meeting thefollowing targets:

We live in an increasingly connected world. As technology advances anddemand increases for more powerful semiconductors and the devices they
make possible, our industry grows as well. This means a greater impact on theplanet and natural resources that we all share.
Lam takes responsibility for our environmental impacts by integrating
environmental considerations into our manufacturing and R&D activities.
At facilities around the world, we are leveraging renewable energy sources,continuing to drive energy and water efficiency and responsibly managing
waste and chemicals. Bold goals—including a new goal to achieve net zero
emissions by 2050—hold us accountable.
We can’t do it alone. We are also driving change across our value chain,
inspiring our suppliers to decarbonize and engaging with our customers toadvance their sustainability efforts.

RELEVANT SDGS

- Achieve 100% renewable energy
globally by 2030

• Sourced 54% renewableenergy globally in 2021

- Reduce absolute Scope 1 and 2(market-based) greenhouse gas(GHG) emissions 25% by 2025 and
46% by 2030 from a 2019 baseline.
Achieve net zero operations by 2040

• Achieved 9.5% reduction in
Scope 1 and 2 (market-based)
GHG emissions- Achieve 12 million kWh in total energy
savings from a 2019 baseline• Achieved 4.7 million kWh inenergy savings - 39% to goal

Achieve zero waste to landfill for
hazardous waste• Diverted 99% from landfill
in 2021

Achieve 17 million gallons of watersavings (15%) in water-stressedregions from a 2019 baseline• Saved 13.2 million gallons ofwater in water stressed regions- 79% to goal

2021 highlights• Established global goals to achieve net zero by 2050 and 100%
renewable energy by 2030
• Reached 100% renewable energy at our Ohio, Malaysia, and China sites• Launched Lam Employee Sustainability Community and Green Teams*We aim to achieve goals by 2025, unless otherwise stated.

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INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

On the path to zeroOUR COMMUNITIESAPPENDIX

Scope 1 and 2 GHG emissions

Emissions reduction is the heart of our net zero goal. We address our carbon footprint through energy management, procurement of
renewable energy, GHG abatement technologies, and, in the future, offsets of the emissions that we do not eliminate.

0.12

160,000

Scope 2

Scope 1

Scope 3140,000

IndirectMarket-based
indirect

DirectIndirect

120,000

56,521

50,664

2,276,504
MTCO2e

MTCO2e

MTCO2e4,409,176
MTCO2eMetric tons CO2e

Scope 3100,000

0.10

0.1

0.08

0.08

0.07

0.06

80,00060,00040,00056,521
82,29664,02675,8840.04

0.02

20,0000

0.08

27,41536,16238,78850,664

2018

2019

2020

2021

0

Metric tons CO2e / US $1,000 R&D spending

2021 ESG Report

Calendar year
Scope 1

UPSTREAM ACTIVITIESLAM FACILITIES AND OPERATIONS

Scope 2, market-based

Normalized scope 1 + 2 emissions

DOWNSTREAM ACTIVITIESScope 1 and 2: Focusing where we have the greatest impact
While only 2% of Lam’s GHG footprint is attributable to Scope 1 and 2 emissions, this is the aspect of our footprint overwhich we can make the most impact. Scope 1 and 2 encompasses the emissions that primarily result from our R&D,
customer demonstrations, manufacturing, and other activities, as well as the electricity we purchase to power those
activities. We are addressing these emissions by investing in energy efficiency upgrades and grid-scale energy solutions,
including onsite renewable energy, where we can. As we work toward our net zero goal, one of Lam’s new operating
principles is that all new equipment investments will be made with Scope 1 and 2 emissions in mind.

107,185 MTCO e Scope 1 and 2 (market-based) emissions2

9.5% decrease in Scope 1 and Scope 2 (market-based) emissions
from 2019 baseline

30.6% increase in Scope 1 emissions from 2020
25.5% reduction in Scope 2 (market-based) emissions from 2020

We are working toward a 2025 goal to reduce Scope 1 and 2 (market-based) emissions by 25% from a 2019 baseline, andas of the end of 2021, we have reduced emissions by 9.5% from that baseline.

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INTRODUCTION

2021 ESG Report

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

Scope 1

Scope 2More than half of our Scope 1 emissions can be attributed to process gases used for customer
demonstrations and R&D activity. Scope 1 emissions went up in 2021 due to increased R&D
activity and concept and feasibility studies at our Fremont lab. We mitigate our Scope 1 emissions
and minimize the emissions of toxic air contaminants and hazardous air pollutants, such ascarbon monoxide, nitrogen oxides (NOx), and sulfur oxides (SOx), through optimization of oursemiconductor processes and the use of best-available emission control technlogies, including
point-of use abatement devices and house abatement systems.

Global demand for semiconductors is higher than ever and, with it, so is demand from
customers for our wafer fabrication equipment and other products. Over the past five
years, Lam has added new manufacturing space to keep up with this demand. In 2021,
the addition of a new building and the build-out of our existing facility in Tualatin, Oregon;
the use of Sense.iTM tools in Fremont, which are more efficient on a per wafer basis forcustomers but increase our lab energy use on an absolute basis; the addition of new
equipment at our Springfield site; and the initiation of Lam Malaysia Manufacturing in
Penang all contributed to increased energy use.

Scope 1 Greenhouse gas emissions

60000

Energy efficiency

192
6,704

Metric tons CO2e

50000

0

33

40000

913
30000

340

Other refrigerants

713

Hydrofluorocarbons

16,054
11,424

10,513

Perfluorocarbons

662
7,858

20000

Other flourinated

9,644

8,532

7,756

Non-flourinated

6,888
10000

0

16,948

11,668• Continuing to upgrade vacuum pumps and install LED lighting and commissioning our ultrapure
and chilled water system in Tualatin, Oregon, which will save 1.1 million kWh per year

• Addition of variable frequency drives on PCW3 pumps at our Fremont, California, facility,

18,071

18,119While increased manufacturing and lab expansion means more energy use, this is arelationship we must decouple as we work toward our energy and climate goals. Lam
has a goal to achieve 12 million kWh of energy savings by 2025 compared to a 2019baseline. Since setting this goal, we have invested in energy efficiency projects suchas LED lighting upgrades, retrofits, and improvements to HVAC equipment like aircompressors. 2021 projects that helped us make progress toward this goal include:

saving over 200,000 kWh of energy per year

• Innovation in our crystal growing processes at our Springfield, OH site saving an estimated
2018

2019

2020

2021

750,000 kWh per year

Calendar year

Renewable energy

0.00033

Million Kilowatt-hours (kWh)4500.00027

350
300
250

1.3

0.00029

400

1.4

1.3
0.000210.3

0.000250.000258200

0.00015

150
100

257

240

307
0.0001196
0.0000550
00.000394

94

89

0.00035

million kWh per US $1,000 R&D Spending

(kWh)

0
2018

2019

2020

2021

Calendar year
Electricity

Natural Gas

Other (Solar + Diesel+ Propane + Vehicles)

Normalized
Energy Use

Energy data is based on estimated figures for the 2021 calendar year.
*Represents the annual energy savings equivalent, measured in millions of kWh, resulting from energy efficiency projects executedduring 2021 for which the energy savings analysis was completed during 2021.
1

APPENDIX

402M kWh in total energy use
14% increase over 2020
2.08M kWh in energy savings*
Silicon savings
Growing silicon ingots is anenergy intensive process and ourteam in Springfield, Ohio looks
for opportunities to optimize theequipment and process to saveenergy. In 2021, Abhinav Rao and
Joshua Russell, research scientists,
implemented process improvementsthat reduced the number of attempts
to grow each crystal and increased
the probability of growing a defectfree crystal, which resulted indecreasing the energy consumption
per mm of silicon grown.

Embracing renewable energy will also help us reach our net zero goal. We aim to use 100%
renewable energy globally by 2030, and in 2021 we developed a strategy and roadmap toachieve this goal. Our roadmap will leverage a combination of available options at eachsite, including onsite solar, and market-based instruments.

Percent renewable electricity at
U.S. labs and manufacturing sites

50%% Renewable energy

2021 energy use by type

OUR COMMUNITIES

54%

Abhinav Rao
research scientist

40%

37%
30%

33%

32%

30%

“Lam has a unique silicon growing process, which
we continuously aim to improve upon by applying
our Tech Vision principles. And in this case, ourinnovative approach resulted in not only
growing better crystals but a significant
reduction in energy use.”

20%
10%
0%
2017

2018

2019

2020

2021

Calendar year
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INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

For example:• Our Villach, Austria plant continues to use 100% renewable energy through a combination of onsite solar andpurchased energy. We expect to complete an expansion of the site’s onsite solar in 2022.

• Our newest and largest manufacturing site in Penang, Malaysia will install onsite solar that is expected to generateover 4 million kWh of energy per year.

• We purchase renewable energy certificates (RECs) that help us to achieve 100% renewable energy at our Ohio,
Malaysia and China sites and 90% renewable at our India site.
Combining the energy we generate, RECs we purchase and the renewable energy from the local grids where we operate,
54% of our domestic and global electricity consumption from our labs and manufacturing sites was renewable in 2021.

Scope 3: Driving down emissions together
Most of our emissions occur from within our value chain, with our supply chain and use of our products being thehighest contributors to our Scope 3 emissions. Over the long term, we plan to address these emissions by holding
suppliers accountable for setting and achieving emissions targets, improving logistics efficiency, and increasing theenergy efficiency of our products. For Scope 3 categories where emissions reduction isn’t practicable, we plan topurchase emissions offsets to reach our net zero 2050 goal.
We conducted a Scope 3 inventory, using standard accounting protocols, to continue measuring our impact inthis area and to serve as a launching point for our Scope 3 emissions reduction efforts. In 2021, we were able
to further assess our average product lifetime using an updated dataset and methodology. This resulted in an
increase of the product lifetime from eight years to 25 years. That significantly impacted our overall Scope 3 emissions
and the proportion represented by the use of our products. The results of this inventory activity underscored theimportance of focusing on the impact of our products. To do this, Lam’s Product Innovation working group

Scope 3 represents

98% of Lam’s total emissions
65% from downstream emissions (primarily product use)
34% from upstream emissions (primarily supply chain)is developing a roadmap that will be integrated into product design, services, and industry collaboration. In
the meantime, we plan to engage with our customers on setting their own science-aligned targets as wellcollaborating to support achievement of their sustainability objectives.
We also recognize how integral suppliers and their emissions reductions are to Lam’s success in reaching net zero.
To ensure that our suppliers set their own SBTs to reduce emissions, we developed a supplier engagement plan thatwill build awareness and capability with our top direct suppliers over the coming years. To date, 10 of our top direct
suppliers have already set or committed to setting SBTs. Our first Supplier ESG Forum in 2022 will encourage evenmore suppliers to join us on this journey.
Where possible, we aim to avoid and reduce Scope 3 emissions from business travel, including those associatedwith air travel, hotel stays, and car rentals. For those emissions that cannot be eliminated, we purchase the industry
recognized gold-standard carbon offsets. In 2021, we offset 100% of our global air travel and rental cars, supporting
renewable energy projects, distribution of efficient gas stoves, and biogas unit construction.

INNOVATION SPOTLIGHT

Thinking locally: Leveraging language skills to make internal audits
more efficient
Before the COVID-19 pandemic, Lam employees carried out internal audits by visiting our
locations around the globe, which contributed to our Scope 3 emissions from business travel.
In the wake of travel restrictions, senior internal audit manager Kristin Gallardo created a
streamlined approach. Gallardo leveraged the diverse language skills of her team and theircontractors to choose culturally relevant key words in Audit Command Language software to
identify inappropriate expenses, duplicates in expense reports, and compliance with Lam’s
policies. What used to take one to two weeks due to travel, manual processes, and random
sampling can now be completed in a single day, with the added benefit of reducing travel andthe associated carbon emissions.

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BUSINESS AND GOVERNANCE

PRODUCT

Making the mostof every material
Lam generates waste in the research, development, and manufacturing of our
products. We monitor and manage both hazardous and non-hazardous wastes,
looking for ways to reduce, recover, reuse, and recycle materials. In addition, Lam
maintains ISO 14001 certification at nearly all of our manufacturing and R&D facilities
to reduce our environmental impact through more efficient use of resources.

Non-hazardous waste: Finding new recycling streams
Most of the waste that Lam generates is non-hazardous, consisting of materials
like wood pallets, cardboard and packaging materials, and municipal wastes. In
2021, our non-hazardous waste generation rose due to increased activities at our
manufacturing and R&D facilities compared to the previous year and the additionof our Malaysia facility.

8,505 metric tons of non-hazardous waste

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

Making a dent in waste• A reduction of trash compactor pickups

from nine per month to one per month

APPENDIX

Non-hazardous waste
generation and recycling

The facilities team at our Tualatin, Oregon
plant initiated a recycling pilot in 2021 todramatically increase recycling for hard-torecycle plastics.
The pilot resulted in:• 81 different types of plastics diverted
from landfill

OUR COMMUNITIES

10,000

80%

70%

8,505

8,000

6,939
6,000

4,000

59%

71%
60%

6,528
55%

5,891

6,020
40%

4,120

4,077
3,613

20%

2,000

• Over 32,000 pounds of waste diverted

from landfill since July 2021

0

0
2018

2019

2020

2021

Calendar year
Non-hazardous waste generated

Non-hazardous waste recycled

Recycling rate

71% recycling rate
Non-hazardous waste recycling

Wood pallets 45%
Mixed recycling
and cardboard 22%
Production waste 10%
Metal and
electronic waste 8%
Mixed plastic
and packaging 5%
Silicon scrap 4%
Other recycling 3%
Compost 2%
Paper 1%

Note: In 2020, we updated our methodology in calculating recycling rate for solid wastes in order to align with SASB.
Lam Research | 34

(Total recycling / total generation) *100

INTRODUCTION

Metric tons

2021 ESG ReportINTRODUCTION

2021 ESG Report

BUSINESS AND GOVERNANCE

SUSTAINABLE OPERATIONSPRODUCT

35%

2,500

Metric tons

28%
2,000

2,208

30%

2,113
22%

1,788

24%

25%
20%

1,500
15%
1,000

505

642

540

524

500

10%
5%
0

0
2018

2019

2020

2021

(Total recycling / total generation) *100

3,000

2,416

RESPONSIBLE SUPPLY CHAIN

Hazardous waste: Managing with care

Hazardous waste generation and recycling
30%

OUR WORKPLACE

The manufacturing of our products involves chemicals that produce
corrosive wastes, flammable wastes, and lab debris, all of which
are considered hazardous. We follow strict controls for responsible
handling of these waste streams. Because this waste is an inherent
part of our R&D and manufacturing processes, we do not have agoal to reduce this waste. Instead, we aim to find alternative disposal
streams for all hazardous waste so that none goes to landfill.

OUR COMMUNITIESAPPENDIX

2,208 metric tons of hazardous waste generated
24% recycling rate

We continue to divert most of our hazardous waste to offsite
wastewater treatment and recycling facilities, which use treatment
methods including fuel blending, solvent recovery, metal recycling,
deep-well injection, and off-site wastewater treatment. In 2021, wesent 1% of our total global hazardous waste to landfill. This was slightly
above the amount we sent in 2020 due to pandemic-related backlogs
at the incineration facilities where some of our waste is managed.

Calendar year
Hazardous waste generated

Hazardous waste recycled

Recycling rate

Lam works with CHWMEG, a nonprofit trade association whose
members strive to efficiently steward waste. CHWMEG audits ourmajor offsite hazardous waste treatment, storage, and disposal
facilities (TSDF). This audit is an integral part of our TSDF selection
and risk assessment process.

Hazardous waste disposal

Offsite wastewater
treatment 42%
Recycled 24%
Deep-wellinjection 22%
Thermal treatment 8%
Waste-to-energy 3%
Landfill 1%

Note: In 2020 we started tracking any wastes sent to waste-to-energy
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INTRODUCTION

BUSINESS AND GOVERNANCE

SUSTAINABLE OPERATIONSPRODUCT

Protecting people and the environment from chemical risks• Secondary containment of chemicals• Fall protection tie-off points• Confined space safety feature
Lam uses a chemical information management system (CIMS) to facilitate chemical use
approval at each site and to track and monitor our chemical inventories.

Conserving our mostprecious resource
Water is essential to our business, our suppliers, and our customers. It’s also a critical partof Lam’s own R&D and manufacturing processes. We use freshwater in our chillers, house
scrubbers, process cooling water system, and soft water treatment plant. The quality of
the water is also important—the cleaner the water we use, the fewer chemicals we needto treat it, and the less maintenance is needed on our facility equipment.
In 2019, Lam used the World Resources Institute (WRI) Aqueduct Water Risk Atlas to
identify areas with water stress. During this process we identified three facilities to focus
on, which include our two sites in California and our manufacturing facility in South Korea.
In 2021, we have also identified our new site in Malaysia, our leased facilities in India, andour new technology center in South Korea as water-stressed areas.
We have a goal to achieve 17 million gallons in water savings in water-stressed locations
by 2025 using a 2019 baseline. Since setting this goal, Lam’s Global Workplace Solutions(GWS) team has explored new technology solutions and invested in efficiency upgradesin accordance with emerging best practices. These solutions include recycling of treatedwastewater for house scrubbers and point-of-use abatement units, and use of brackish
water for landscaping and fire suppression. We added eight water recovery units to ourabatement systems in California in 2020 and another seven in 2021. In 2021, we saved
6.3 million gallons of water at our water-stressed locations.

0.00019300
200

0.000240.00023

400

Million gallons• Prohibition of direct buried chemical tanks and pipes regardless of controls

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Water use, treatment, and recycling

Just as we manage waste generated during our production processes, we also carefully
manage the chemicals that people encounter as part of manufacturing. Chemical
management is part of our EHS standards, which also include guidelines related to:• Spill prevention control (e.g., safe valves, sumps, leak detection)

OUR WORKPLACE

0.00021292

276

0.00025378
0.0002228

0.00015

150

142

87

86

100

170

126

0.000175

720.00005
0

0
2018

2019

2020

2021

Calendar year
Water usage

Wastewater treated

Wastewater recycled

Million gallons / $1,000 R&D spending

2021 ESG Report

378 million gallons of total
water usage

38% of usage occurs inwater-stressed areas

6.3 million gallons of watersavings realized towards our
2025 goal

Normalized water usage

Wastewater: Being a good steward
We monitor industrial wastewater and stormwater discharges in accordancewith local regulatory requirements. In many cases, we reuse processwastewater for other aspects of our operations, allowing us to use less water
overall. We are finishing the construction of wastewater reclamation andrecycling systems and acid waste neutralization systems at our California andKorea facilities. These new systems are expected to be fully operable in 2022
and will save over 20 million gallons of water per year once in use, exceeding
Lam’s 2025 goal.

Going green at Lam Villach
Lam Villach takes its cues from the Austrian ‘smart city’ in which
it’s located. From a planned neutralization plant that enables
our operations to minimize acid concentrates and hazardous
waste generation, to the use of 100% renewable energy through a
combination of onsite solar and purchased energy, sustainability
features permeate the campus. Seven new electric vehicle
charging stations were added in 2021, bringing the total to 11.
Outside, employees can enjoy fruit trees and pollinator plants,
and harvest herbs and vegetables from the garden.

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Working together tocare for the planet
Across the world, Lam employees take action to reduce their own environmental impacts
and those of the company. Throughout the year, we offer programs to engage employees
and build momentum for sustainability. These include:

Lisa Thamer
EcoChallenge winnerSupporting employee-led action
Transformative change often comes from the grassroots. Lam’s Employee Sustainability
Community (LESC), launched in 2021, invites all employees and contractors globallyto collectively enact sustainable change inside and outside of Lam. The group meets
monthly to hear from guest speakers and brainstorm new programs. To date, LESC hasorganized initiatives such as Plastic Free July, in which participants were challenged touse as little single-use plastic as possible. The group is also advocating for more plantbased food in facility cafeterias to reduce food-related emissions.
Beyond LESC, Lam also has three employee Green Teams, which are site-specific groups
that focus on improving our campuses’ ecological sustainability, including improving
waste diversion, enhancing natural spaces, and conserving resources. Green Teams are
currently active in Tualatin, Livermore, and Fremont.
A critical piece of our employee engagement strategy is rooted in the recognition andcelebration of our employees’ environmental efforts. For the second year, Lam presented
Environmental Stewardship Awards to individuals and groups who advocate forsustainable practices, both at Lam and in their communities. We’re proud to recognize
the 2021 winners:• Angela Hartman, an administrative assistant from Fremont, who serves as volunteer
program coordinator at the Ohlone Humane Society Wildlife Rehabilitation Center• John Niggley and Stacy Fortner, facilities professionals in Tualatin, who haveadopted sustainable practices at the facility, including leveraging incentives forenergy efficiency, increasing plastic recycling, and creating a pollinator garden on
the campus

Celebrations around the globe
Throughout Asia, employees took part in World Environment Day events, including a beachcleanup at Pasir Ris Beach Park in Singapore and a litter cleanup day in Shanghai.

“The EcoChallenge makes
participants stop and think about
what they are doing for or against
our planet. This can be a ‘wake-up
call’ to change their ways.”

During Earth Month, employees participate in the EcoChallenge, a 30-day challengeorganized by EcoChallenge.org. Throughout the month, participants can commit to reduce
waste and water, use less energy, eat healthy meals, and spend more time outdoors. In 2021,
the winner of the challenge was Lisa Thamer, an administrative support professional inAustria. Lisa adopted many new habits during the 30-day period, including wasting less food,switching to LED bulbs, planting trees, and learning about environmental practices.

Creating a buzz at
our facilities
Insects are small but mighty partners inprotecting the health of ecosystems. Lam
Research teams worldwide have taken
steps to promote healthy local insect
populations, such as:• Using ladybugs as a natural aphid

control measure and alternative to
pesticides and planting a pollinator
garden in Tualatin, Oregon• Supporting the restoration of firefly habitats in Chungcheongbukdo, Korea, where fireflies are anatural indicator of pollution levels• Planting flowers in Villach, Austria, to provide a food source for local pollinators

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXOUR WORKPLACE

We foster
an innovative,
achievement-oriented
culture and celebrate
the people who bringit to life.
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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Workplace*
GOAL

A tiny nudge in nanotechnology can move the whole world forward. That’s the ideathat propels our employees as they push the boundaries of what’s possible. Bold
innovators, masters of precision, and believers in process and proof—our employees
represent the top talent in our industry and are at the heart of Lam’s success.
We support our employees by cultivating a safe and inclusive environment andinvesting in their wellness and development. Our commitment to inclusion anddiversity (I&D) contributes to a culture where every employee is empowered to dotheir best work. We leverage diversity to fuel innovation—uniting unique individuals
with broad perspectives to tackle complex challenges in new ways.
In 2021, around the world our employees rolled up their sleeves to meet increased
production demands in the midst of a global health pandemic. At the same time, we
expanded our global workforce dramatically, adding over 4,000 individuals to ourteam—a 33% increase over 2020. We did so with a focus on hiring diverse talent,
including more female and minority workers, who are widely underrepresented in
the fields of science, technology, engineering, and math (STEM). Through it all, ouremployees delivered tremendous results for our business and customers, driven by
the question, “what’s next?”

RELEVANT SDGSSTATUSPROGRESS TO DATE

Build on our high-performance
culture with best-in-class employee
engagement at the top-tierbenchmark as measured by
our annual employee survey**• Achieved top 20%
engagement in 2021

Maintain an OSHA recordable injury
rate at or below 0.4***• Realized recordable injury rateof 0.4 in 2021

Increase number of women andunderrepresented employees
across the company• Expanded proportion of
women globally by 4.8% andunderrepresented employee
groups by 15.4% in 2021

2021 highlights• Expanded benefits to include 16-week paid parental leave and up to
six months for birth mothers• Established new relationships with Historically Black Colleges andUniversities (HBCUs) and Hispanic Serving Institutions (HSIs)• Launched six new employee resource groups (ERGs), including fourin our Asian regions• Created WorkWise, a global initiative to support employee wellness*We aim to achieve goals by 2025, unless otherwise stated.
**Updated in 2021 to reflect change in methodology for measuring engagement benchmark.
***Updated in 2021 to clarify goal is at or below 0.4

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Putting our people first:
Our approach to humancapital management
We’re building on our success in making Lam an outstanding global workplace. Our Boardof Directors oversees the performance of our CEO and the succession of executive talent,
and works with the Compensation and Human Resources Committee to engage withmanagement across a broad range of human capital-related topics. Our CEO Staff and
Global Human Resources teams drive the same objectives for our entire global workforce.
Their focus areas include:• I&D to enable greater innovation and self-empowerment in the workplace• Recruitment, employee development, and retention• Employee engagement• Compensation and benefits• Health and safety
Since calendar year 2020, all of our named executive officers have had compensation
goals related to culture, talent, and I&D to help ensure the members of our executive
team are aligned with our corporate goals in these areas and are accountable for the
results achieved.

Our commitment to non-discrimination
We aim to maintain and cultivate a workplace where every person has equal
opportunities to thrive. In line with the highest ethical and legal standards of laborand employment laws in every country where Lam maintains our workforce, we arecommitted to equal opportunity and non-discrimination in all our employment practices.
We prohibit discrimination, harassment, and retaliation in any aspect of employment—
including recruiting, hiring, promotion, and compensation.

Leading from the top
In 2021, Lam’s CEO Tim Archer joined morethan 2,000 signatories of the CEO Action for
Diversity and Inclusion pledge, which aims
to drive measurable action and meaningfulchange in advancing diversity, equity, andinclusion in the workplace.
Tim Archer
president and CEO“The actions we take as an industry
to increase the diversity of our talentpipeline today will dramatically
improve our ability to drive new
semiconductor breakthroughs in
the future.”

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2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTMoving the needle on I&D
To underscore our ongoing focus on these important topics, we added inclusionand diversity as one of our Core Values in 2021. Our commitment to cultivating
an inclusive environment and increasing diversity among our workforce has an
influence in areas ranging from recruitment practices to benefits offerings to ourcompany policies. Our global head of I&D, Antoinette Hamilton, leads our I&D
strategy, which focuses on three core pillars: fostering inclusion, increasing diversity,and sharing our progress.
In 2021, we focused on deepening and expanding our commitments to accountability,transparency, gender equality, and supporting diverse communities through investments
in leadership development, employee engagement, talent growth, and communication.

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Global gender representation
Global

19.5%

80.3%

0.2%

U.S.

22.0%

77.7%

0.3%

40.0%

60.0%

Global

16.9%

83.1%

U.S.

18.2%

81.8%

Global

17.3%

82.7%

U.S.

20.8%

79.2%

Technical
Employees

Global

11.7%

88.3%

Global and U.S. Gender

U.S.

15.0%

85.0%

U.S.

25.4%

74.6%

Global

21.8%

77.7%

All Employees
Global and U.S. Gender

Board of Directors

Global and U.S. Gender

FemaleFemaleGenderExecutives

FemaleFemaleFemale

Male

Male

Other

Other

Male

Male

Male

Antoinette
Hamilton
global head of I&D

Managers“When diverse voices cometogether to express support for
equity and inclusion, it creates aunique power to make real andlasting cultural change.”

Global and U.S. Gender

2021 workforce representation
As we continue implementing our I&D strategy, we’re committed to holding ourselves
accountable and being transparent about our results and in 2021, we expanded ourdisclosure by publicly reporting our Equal Employment Opportunity EEO-1 data for the
first time.
To the right is a snapshot of the demographics of our U.S. and global workforce as ofDecember 31, 2021. The scope of employee demographic data does not include ourTalus employees, although they are included in our total headcount.
In 2021, we encouraged our employees to self-identify their disability status, and todate 34% of employees disclosed it. We will use these insights to inform the continuous
improvement in our I&D initiatives.

New College
Graduates

FemaleFemaleFemaleFemaleFemale

Male

Male

Male

Male

Male

U.S. Gender

New Hires
Global Gender

FemaleMinimal rounding has been applied to this data.

Male

0.5%
Other

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

U.S. ethnic diversity

All employees*
2.9%

2.6% 0.7%

U.S. gender and ethnicity*
Other Race/Ethnicity

Chose not to disclose

0.4%

American Indian or Alaskan Native

5.9%

Native Hawaiian or Other Pacific Islander

7.0%

4.6%
Male

Black or African American
50.5%

40.8%
Male

Two or More Races

0.9%
Female 3.0%
Male
1.1% 0.2%
Female Other
21.7%
Male

White

Chose not to disclose

Asian

0.5% Female
2.1% Male

Hispanic or Latinx
30.0%

8.3%
Female0.1% 1.6% Female
Other

Asian

9.7%
Female

White

5.4%
Male
Black or African American
Hispanic or Latinx

Other workforce diversity

U.S. Veteran status

Global employees by generation*
6.7%

U.S. Veteran 8%

9.8%
Born
1996 or after
60.4%

Non-U.S. Veteran 92%

23.1%

1980-1995
1965-1979
1946-1964*Minimal rounding has been applied to this data. Data does not include Talus.

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GEM fellowships funded in 2021

38

GEM fellowships funded since 2019

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Advancing I&D in our industry
Companies with increased diversity among their management teams reportedly drive an
average of 19% more of their revenue from innovation than their less diverse counterparts.1
Therefore, we are confident that attracting, retaining, and developing diverse talent helps
us maintain a competitive edge. Despite ongoing evidence that an inclusive and diverse
workforce boosts companies’ ability to drive value and fuel innovation, a lack of pathways
persists in the U.S. for people of color and women to enter STEM fields. The time forprogress is now, and we know it takes teamwork to move our industry forward.
In 2021, we launched and continued a variety of collaborations to support organizations
advancing I&D in STEM. The organizations we work with include:• Alliance for Global Inclusion$300,000in GEM fellowship funding annually• Conference for Engineering Diversity• DEI Board, founding member• EDGE in Tech Initiative at the University of California• National GEM Consortium• Out & Equal• Out in Science, Technology, Engineering, and Mathematics (oSTEM)• United Negro College Fund
• Women in Science, Engineering and Technology (WISET in Korea)

In 2021, Lam hosted a panel on the main stage of
SEMICON West that highlighted why prioritizing
diversity, equity, and inclusion is not just the rightthing to do, it is a business imperative – crucial
to combatting the existing tech talent shortage.
The panel convened industry luminaries topromote accountability, share best practices, andincrease opportunity around the path forward foradvancing diversity, equity, and inclusion.

Around the world, we support organizations
that build awareness and opportunities forunderrepresented STEM talent, including but notlimited to people of color, women, and membersof the LGBTQIA+ community. One of our key
relationships is with the National Consortium of
Graduate Degrees for Minorities in Engineering(GEM), which provides graduate-level
fellowships to underrepresented candidates inengineering and science. We're proud that ourCEO, Tim Archer, has served as GEM’s Chairman
since 2020, and our foundation provides$300,000 for GEM fellowships each year.

Boston Consulting Group https://www.bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation

1

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Recruiting diverse employees and helping them thrive
At Lam, we lean into complex challenges to move society forward. Today,
surging chip demand is fueling industry growth, yet widespread labor shortages
make it hard for companies around the world to keep up.2 With millions of job
openings available across the tech and advanced manufacturing sectors, ourindustry faces stiff competition to attract, retain, and source new talent. At thesame time, diverse candidates remain underrepresented in many industries
powered by STEM.
In 2021, Lam launched several new relationships to support and engage
diverse students and professionals throughout the U.S. and help close therepresentation gap in STEM. Our new engagements with INROADS creates
opportunities for students from historically underserved communities tocomplete internships at Lam. And our collaboration with the United Negro
College Fund (UNCF) provides $100,000 in funds through 20 new scholarships
at UNCF schools including HBCUs. We also have student and alumni recruiting
relationships with:• Howard University• Norfolk State University*• North Carolina A&T• The National Society of Black Engineers (NSBE)*• Society for Hispanic Professional Engineers (SHPE)**new in 2021
We continue to prioritize investments in our internship program, new college
graduate (NCG) rotation program, campus events, and thesis awards andscholarships. Through the NCG rotation program, recent graduates gain
educational training along with real-life experiences that help prepare themfor successful careers.
Through these programs, we’ve transformed an industry-wide challenge into an
opportunity for Lam. In 2021, 19% of our new hires were from underrepresented
groups, and we will continue to promote diversity inside and outside our company.

From kindergarten to college, we’re
increasing pathways to STEM
The talent pipeline starts long before the recruitment or application process.
It begins by showing K-12 students just how fun and exciting STEM can be
and continues through collaborations with universities and organizations
fostering better career opportunities for underrepresented groups.
Core to our early outreach efforts, two of our ERGs—Black Employee
Network (BEN) and Community of Latinx and African Americans forStudent Success (C.L.A.S.S.)—volunteer in schools to encourage students
in the African American and Latinx communities to explore STEM
education and careers.
As students progress beyond their K-12 years, our ongoing and new
relationships with HBCUs, HSIs, GEM, and other organizations create
opportunities for diverse graduating high school seniors—as well as
undergraduate and graduate-level university students—to discover
their full potential. We continue to provide support through scholarships,
internships, and opportunities to join our workforce.

Tony Davis
product support
engineer and Black
Employee Network chair“An inclusive future is one inwhich everyone has a pathto economic, social, andeducational opportunities.”

Lam Blog: https://blog.lamresearch.com/the-semiconductor-industrys-next-inflection-point/

2

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2021 ESG Report

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Our 2021 Inclusion
Index Score compared tothe technology industry
benchmark of 73

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Tapping into the heart of Lam
Our ERGs harness the passion of employees around the world to contribute to a more inclusiveand diverse company culture. They create opportunities for employees to connect, learn, anddevelop; volunteer in mentoring programs; support diverse recruitment; and engage in our
local communities. Under our ERG model, each group develops its own charter, goals, andinitiatives that align with the company’s I&D Vision, for every person to feel valued, included,and empowered to achieve their full potential. By bringing unique individuals and viewpoints
together, we achieve extraordinary results.
In 2021, all members of the CEO staff participated in ERG activities throughout the year, achieving
our goal of 100% engagement. And each of our ERGs has an engaged executive sponsor. In 2021,
we launched several new groups, expanding our total to 14, which includes the following:• Black Employee Network*• Women in Engineering• Community of Latino/African Americans• Women@Fremont

for Student Success Outreach• Lam India Women’s Network (LIWN)*• New Professionals Network*• PRIDE LGBTQ+ Allies• Lam’s Veteran Community• Women in CSBG

• Women in Global Operations (WGOP)• Women in Leadership at Lam• Women in Global Operations Malaysia*• Women of Southeast Asia*• Women in Global Operations Korea*New in 2021

Fostering an inclusive culture through ongoing training and engagement
We strive to embed I&D values throughout every aspect of our organization, including throughtrainings, engagement activities, and employee development resources. We provide crosscultural training and mentoring opportunities, and I&D training is required for all new employees.
Managers receive further trainings and support to help them cultivate a more inclusive
workplace for the teams they lead. We also offer resources through our app-based Inclusion
Every Day program, which features practical, accessible reminders to be inclusive in dailyleadership and decision-making. In addition, we are requiring all managers to set an inclusion
development goal on an annual basis beginning in 2022.
In 2021, we further focused on I&D engagement by launching an Inclusion Index within ourannual employee survey. The index represents the combined score of three survey questions
that address equal opportunity, inclusion, and authenticity. While these items have been
included in previous surveys, the new combined measurement will allow us to hold ourselves
accountable by more clearly assessing our progress and identifying opportunities to improve.
We also kicked off a new quarterly speaker series titled “Inclusion and Diversity Talks,” which
had participation from over 1,500 employees globally.

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Advancing equity at Lam
Women now outpace men in earning college degrees within the U.S.3, and they’ve achieved
parity in the life sciences areas of work in many countries throughout the world.4 Yet when it
comes to STEM fields beyond health sciences—such as engineering, computing, physics, andmath—a stark gender gap remains. That gap highlights the persistent inequities facing womenin STEM, and a critical missed opportunity for our in-demand industry.
To help address this gap, we’re committed to promoting gender equality and increasing
the number of women in our workforce. To ensure accountability, we regularly measure theprogress of our efforts to recruit, hire, and retain female employees. We also conduct anannual pay equity assessment of our compensation practices and systems to promote fairand equitable compensation in our workforce.

Representation of women in our workforce by level

Additionally, in 2021, we continued to focus on increasing the number of women in
our workforce and advancing their development by engaging with organizations
that support women in STEM, including the National Association of Women in
Manufacturing; Society of Women Engineers; Watermark; WIN (Women in INnovation)
Korea; Women in Science, Engineering and Technology; and several universities inIndia. From Korea to the U.S., our female leaders spoke at virtual events streamedaround the world, and we sponsored and participated at numerous conferences andevent series aimed at connecting and empowering women. Examples include:• Anita B.org: annual Grace Hopper Celebration of Women in Computing event• Expanding Diversity and Gender Equity in Tech Initiative: Women in Tech
Symposium• San Jose State University: Women in Engineering Conference• Singapore Semiconductor Industry Association: Semiconductor Women’s Forum• Women Impact Tech: event series

Executives 5%• WIN (Women in INnovation) Korea: bi-annual conferences

Managers 19%
Other 43%

Technical
employees 33%

Our employees celebrated International Women’s Day with a #ChooseToChallenge
campaign, which called out gender bias and inequality while celebrating women’sachievements. Meanwhile, female employees leveraged our Yammer channels tocultivate connections by launching groups like Moms of Lam. ERGs remain a coremode of connection for female employees worldwide.
As part of our efforts to reduce the gender gap in STEM, retain our female
workforce, and provide family-supportive benefits (for both female and male
employees), in 2021, we expanded our benefits offerings with inclusion anddiversity in mind—including increasing paid parental leave and creating more
workplace flexibility globally. We also collaborated with Pathforward to designand develop a Return-to-Work Program, which will launch in 2022 to help workers
return to the workplace after a gap in their employment history and provide new
recruitment channels for Lam.

Pushing gender equality forward
Our Women in Global Operations (WGOPs) ERG reaches acrosscontinents to support and develop Lam’s female talent. In 2021, WGOPs
continued their collaboration with FountainBlue, a change management
consultancy, to deliver a series of year-round, women-in-leadership
events and programs. This included 24 frontline manager meetings
on topics such as communication, negotiation, and creativity in tech;
12 panel meetings for middle to senior women leaders; and 12 VIProundtables for leaders at the director level and above.

Pew Research: https://www.pewresearch.org/fact-tank/2021/11/08/whats-behind-the-growing-gapbetween-men-and-women-in-college-completion/
3

World Economic Forum: https://www.weforum.org/agenda/2021/07/science-technology-gender-gap/

4

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BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXEngaging employees to create
a great workplace for all

80

When employees feel engaged, they approach their jobs with a long-term commitment andperspective that helps them produce their best work. And when that happens, our customers
benefit, and our business thrives. Over the last few years, our work dynamic has changed with aportion of our employees working remotely, so maintaining high levels of employee engagement
has never been more important.

(top 20% of tech benchmark)Listen, learn, improve: Our strategy for ongoing engagement

engagement score

6.5

Average years of service

93%

retentention rate

Employee feedback plays a critical role in shaping many of our workplace initiatives and priorities.
We measure employee engagement and capture employee insights through a comprehensive
annual survey, which is facilitated through an external vendor and incorporates our new
Inclusion Index, employee onboarding and exit surveys, and employee listening sessions.
With each new round of insights, we act on what we learn. For example, to maintain consistently
high scores throughout Lam, we invited managers of consistent, highly engaged teams to share
their stories and best practices at scale, igniting energy and inspiring action. We provided
personalized coaching and support for new people managers to improve performance andhelp elevate teams to the Lam average. Over the past three years, we’ve also used employees’
feedback to develop and enhance some of our most valuable workplace programs, including:• Strengthening the Employee Resource Group community• Continuing data-driven leadership development programming (including resilience andcommunication)• Launching new programs including Better Up Coaching, Mentor Connect, and our U.S. Flexible
Workplace policy
In 2021, our annual employee engagement index score of 80 put us in the top 20% of oursurvey vendor’s technology clients for the second year in a row. Lam survey scores exceeded
the technology benchmark on all items in 2021 including manager support. We also expanded
employee listening through two new surveys: in March, we re-launched our corporate exit survey
to gain insights across the employee experience. And in September, we launched a new-hireexperience survey, administered at 45 days of employment, and also streamlined our new hire
training and improved the welcome experience.

Celebrating employees who go above and beyond
We celebrate each other’s success. Above and Beyond, our “everyone-to-everyone” recognition
program, allows employees to acknowledge individuals or teams for great work or demonstrationof our Core Values. In 2021, employees recognized fellow colleagues with more than 71,000
awards. Individual and team accomplishments are also recognized through our Vista,
Outstanding Technical Achievement, and Patented Innovation awards.

Erin Wixson
employee engagement
senior manager“While Lam employee engagement scores
are top tier, focusing on engagement isn’t
enough to be best-in-class. Which is why
we are focused on our employee experience
listening and measurement strategy to
inform targeted investments in theoverall employee experience.”

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Our global workforce was incredibly resilient throughout 2020 and 2021. However, in listening sessions and engagement
surveys, we found that some employees were struggling with fatigue and isolation. This was due in part to the ongoing
COVID-19 pandemic and the resulting shift to remote and hybrid work. We responded by hiring additional resources in key
areas, outlining clearer organizational priorities, and expanding our benefits focused on physical, financial, and mental health.
We also rolled out new trainings and initiatives through digital and on-demand platforms, including:• WorkWise: A series of initiatives to support wellness and engagement, which added two new holidays, instilled betterboundaries and best practices for video calls and included virtual events to create social connections among colleagues• Managing Medical and Leave Issues in the Workplace: An inclusivity-focused training to help managers support people
with complex leave and disability issues• Mental Health First Aid certification: A program to build practical skills to spot signs of mental health issues and learn
strategies to support a person in distress• Remote meeting practices: Protocols to support wellness including Workday Boundaries, which set expectations andboundaries for working hours, and Focus Fridays, which establish that Friday meetings are off-camera and should end by
2:00 p.m. local time.

Employee benefits

Looking out for our
employees’ well-being
Our employees deliver results for Lam, and we strive to deliver great benefits andresources in return. The resources we provide help employees maintain strong
physical health, manage their finances, and find a critical balance between
work and life. We offer these benefits through on-demand platforms to ensure
accessibility to our global workforce.
In 2021, we further integrated inclusive features into our global benefits andwellness offerings, with a focus on increasing support for families and parents.
We added:• Expanded our paid maternity leave for birth mothers up to 6 months andPhysical health• Telehealth access• Virtual Health Fair* enhanced to include
sessions for children and family• COVID-19 tests and treatment covered at 100%with no co-payment• COVID-19 resources for those who are sick, inquarantine, or caring for others• Personalized nutrition plans, nutrition
challenges, healthy cooking demonstrations,and webinars• Virtual fitness experts, classes, daily workout
ideas, and personal training• Higher reimbursement for adoption expenses• Virgin Pulse app—a wellness platform for
employees, families, and friends that provides
resources for better sleep, lowering stress, andbeing more active• Extended bereavement leave• Wellness incentive*

provided all parents with up to 4 months of paid parental leave• Higher lifetime maximums for fertility treatments and prescriptions• Expanded our elective legal insurance benefit to cover a broader range of needs*new in 2021**Increased from six to seven sessions
Note: Benefits offered to all global regular, full-time employees unless otherwise noted.

Financial well-being• Pay continuity for employees affected by closures for cleaning,social distancing, and other safety measures• Emergency pay of up to 80 hours for days when an employee
stays home due to COVID-19-related absences• Penalty-free COVID-19 related 401(k) distributions allowed of
up to $100,000• Financial seminars and webinars

Work-life management• Convenient access to licensed therapists via text through Talkspace• Personalized on-demand help for stress, anxiety and depression with
the Sanvello app• Childcare support through Care.com (U.S. only)• Fully-paid leave of absence of up to 16 weeks paid family leave for baby
bonding (U.S. only) (expanded by four weeks)• Webinars on stress management, family support, and family wellness• Lifestyle account allowance up to $500 for a variety of life-enhancing
opportunities for employees and their families (U.S. only)• Employee Assistance Program (EAP)** that offers confidential,
professional care and resources including information, advice, andsupport in 14 languages
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BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACE

Focusing on employee development
Lam employees are curious. They are continuous learners who discover new ideas and test new possibilities. Our goal is to help employees build
a dynamic, evolving career at Lam. To do so, we enlist our Learning Connect portal, iLearn on-demand training portal, and other platforms tocreate flexible development opportunities for remote workers and provide trainings customized by region. Additionally, in 2021 we launched theLam Learning Series, which provides live trainings on current and relevant topics for Lam, delivered in local languages globally. Topics included
building organizational resilience for people leaders, and managing and preventing burnout for all employees.
Further, we focus on offering existing employees opportunities for promotion and growth, as well as ensuring talent succession. In 2021, we
promoted over 1,900 Lam employees, or 45% of our open positions.

Turning talent into leadership
At Lam everyone is a learner and everyone is a leader. As employees develop their skills and gain knowledge, we help them build theirconfidence to lead Lam’s global teams toward world-class results. Our leadership programs and our technical certification program aredesigned to meet Lam’s managers at different stages of their evolving careers. They include:

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Training and development in 2021

454,000
total employee training hours$2M

reimbursement for educational expenses

4,500

courses offered

680+

managers engaged through Grow,
Lead, and Edge programs in 2021

• Grow: With a focus on first-time managers and effective communication, Grow allows us to scale leadership across our business, guiding new
managers early on.

• Lead: Lead is designed to help experienced managers to up-level their leadership skills.
• Edge: Edge equips our executive leaders to drive positive change through a year-long cohort journey.
• Leap: Our technical program, Leap, provides new hires and current engineers with a comprehensive company overview and a four-level skill
certification program across 12 disciplines to accelerate their development.
As our leaders grow their careers, they mentor others to share knowledge and increase their network and capabilities. In April 2021, we
implemented Mentor Connect, a new technology that expands our ability to facilitate mentorship relationships across the company. In our
first enterprise mentor program we had 317 mentoring participants, with a satisfaction score of 3.9/4. We also work with BetterUp, an online
coaching platform, to provide external coaching to key talent, including 315 managers in 2021.

Tuning in to the voice of our customers

Employees participated inover 16,000 Leap trainingclasses representing 40,000
learning hours. Since 2018,
over 2,500 Leap certifications
have been awarded to thetechnical community.

Our Edge development program empowers Lam executives to drive positive change
in our organization. In 2021, one multidisciplinary Edge team set out to explore ways
to streamline our Voice of Customer (VoC) programs, which capture critical customer
feedback so that we can improve our customer experience.
By analyzing current VoC practices, the Edge team captured and summarized several areas
for improvement. They then benchmarked Lam’s practices against industry peers andinterviewed a key customer to capture their insights. Through an organized training program
the team turned their findings into a set of recommendations for better organization-wide VoC
practices and awareness. This set the foundation for a second phase of the project, in which
they hope to capture additional VoC insights, such as customers’ views on ESG.
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Committed to safety
The products and services our employees deliver enable the devices on which our society relies.
Never was that truer than in 2021, when global demand for chip technologies reached record heights.
Keeping pace required a tremendous amount of work by our employees at manufacturing sites andlabs, and offices around the globe. Protecting and supporting our employees is always paramount.
We follow strict safety protocols, prioritize safety training, and use risk controls to enable employees
to safely do their work while continuing to meet and exceed customer expectations.
Our global Environmental, Health, and Safety (EHS) Policy outlines our commitment to protect all
Lam personnel and minimize risk through prevention of illness, injury, and environmental impact.
It applies to every site and employee where we operate. To uphold our commitment to safety, weinvest in prevention-based education, training, and awareness programs, as well as emergency
preparedness procedures. Our safety programs are governed through a multi-tiered system—which
includes corporate governance, site-based EHS leadership and business unit involvement, andadditional committees and reviews. Likewise, we monitor our safety performance at the enterprise,
regional, and site levels. Our corporate EHS team uses Lam’s global incident tracking system toassess and monitor safety trends, which it reports to business units and executive leadership
through quarterly reviews. Our recordable injury rate is reported to the Board on a quarterly basis.
In 2021, Lam onboarded a large volume of new employees and ramped up production to meetincreased customer demand. These factors, along with an aging workforce, contributed to a risein our recordable injury rate. Strains and sprains continue to be our top mode of injury, and in 2021,
we added a new physical training program, increased our general health and safety training, andperformed more ergonomic assessments with the goal of reducing ergonomic injuries globally.
Our safety standards also extend to our contractors. We screen contractor safety performanceand require their compliance with the safety standards set forth in our Contractor Handbook.
Contractors must report safety incidents so that we can take formal actions if contractors fail toadhere to our standards.

INNOVATION SPOTLIGHT

Holding steady: A handy solution improves quality and safety
We specialize in delivering big solutions through the smallest technologies. To do this, our metrology
staff uses high-powered microscopes to examine each small wafer sample for quality control. The
task requires them to physically prepare each sample and hold it steadily in place for test after
test—potentially leading to repetitive motion injuries. For a more ergonomic and efficient solution,engineering technician Albert Wright designed a Sample Cradle Holder and Sample Preparation

We maintain multi-site certifications for ISO 45001, theglobally recognized standard for occupational healthand safety management systems.

Station, which assist technicians like a “third hand.” The tools are currently in use at our Fremont,
California, and Tualatin, Oregon, labs, enabling technicians to perform their tasks more comfortably
and thoroughly while improving the image quality of each test result.
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Safety performance

53,000hours employee safety training

65%

BUSINESS AND GOVERNANCE

PRODUCT

OUR WORKPLACESUSTAINABLE OPERATIONSRESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Our risk assessments and training programs
Our site and regional EHS teams use a layered approach to conduct annual safety risk assessments of their local operations. In 2021, these assessments comprised
increased COVID-19 employee protection protocols, including face coverings use and social distancing. We conducted more than 206,000 Risk Management by Walking
Around inspections—a process that we use to identify and track safety issues, as well as implement corrective actions at our offices and manufacturing sites. Similarly,
our field teams use a Rapid Field Risk Assessment process to manage risks at customer sites.
Our people managers in field support, manufacturing, research and development, warehouse, and logistics operations all undergo formal safety leadership training
to enhance their skills in safety management and communication. We also continued our Safety Awareness for Everyone (SAFE) program, which we use to update
employees on emerging safety issues. We employ SAFE to prevent future issues by including lessons and stories based on incidents of the past.

injuries attributed to strains, sprains
and slips, trips, and falls

Keeping employees safe during COVID-19

All safety data is reflective of Lam operations with the
exception of our Silfex sites.

Employees were informed of safety best practices through trainings, updated signage, videos, frequent communication from leadership, and updates via our dedicated internal
COVID-19 website. For our onsite workers, we employed administrative, engineering, and environmental controls such as face masks, temperature monitoring, social distancing,sanitization, workforce segmentation, enhanced indoor air quality controls, and offered free onsite testing and vaccination clinics. We also focused on expanded workplace
flexibility to improve and allow for remote work where possible.

Number of incidents per 100 employees per year

As the COVID-19 pandemic posed ongoing safety risks in 2021, we continued to take steps to protect our workers and reduce the risk of transmission in our workplaces. We
continuously adapted our strategy and practices through a science-based approach, and we adjust to new governmental and regulatory regulations where and when needed.

Recordable injury rate (Lam vs. industry)
Industry avg
Lam rate
Lam target

0.7

0.7

0.33

2018

0.7

At or Below
0.4
0.40

0.34
0.26

2019

2020

2021

Note: Rate based on 100 employees working full time for one year. Data as of April 2022. Certain historical figures havebeen updated to reflect new reported cases received. 2021 industry average was not available at time of publication.

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXRESPONSIBLE
SUPPLY CHAIN

We use our scale
and influence toinspire positivechange.

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Responsible supply chain*
GOAL

Lam’s business is part of a complex global supply chain that propels technology forward.
Over the past few years, surging consumer demand has led to shortages of integrated
circuits and sub-tier components throughout the semiconductor ecosystem, as wellas increased cost pressures. As we meet these challenges, we continue to prioritize a
responsible supply chain and continually monitor and manage risks. We are committed
to fostering a supply chain that is ethical, resilient, and diverse. Our focus on criticalissues in our supply chain include human rights, conflict mineral sourcing, and theenvironmental impact of climate change. As part of our commitment to driving industry
collaboration, we are an active participant in several multi-stakeholder organizations
such as the Responsible Business Alliance.
In 2021, we established a new foundational supply chain strategy and began our
engagement with suppliers to make progress toward our 2050 decarbonization goal. As
we begin this journey, we are committed to providing ongoing support and resources tosuppliers that create shared value for our business, our value chain, our customers, andthe world. When our suppliers succeed, Lam and our customers succeed, too.

RELEVANT SDGSSTATUSPROGRESS TO DATE

Achieve more than 90%
compliance rate with our social andenvironmental expectations acrossour top-tier suppliers• Exceeded our goal with 92%
supplier compliance in 2021

Engage with at least 50% of our
top-tier suppliers on environmental
sustainability opportunities• Exceeded our goal by engaging with
73% of top-tier suppliers in 2021

Increase engagement with all
suppliers on social and environmental
topics through assessment, training,and capacity building• Undertook a variety of engagement
activities such as one-on-one
meetings, assigned trainings, andsupplier events in 2021

80% of top direct suppliers by spend
set science-based targets by 2025
and 95% by 2030

• This goal was set in 2021 andprogress will be reported in our2022 report

2021 highlights• Adopted supplier engagement platform• Featured ESG in our virtual Supplier Day• Developed net zero supplier engagement strategy*We aim to achieve goals by 2025, unless otherwise stated.

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Embedding ESG across ourglobal supply chain
A responsible, ethical supply chain is integral to our business strategy. It builds resilience, makes
us more competitive, and supports workers throughout our value chain. Over the past several
years, we have refined our approach to ESG management and performance in our supply chain.
In 2020, we introduced a strategic framework with six pillars:

Transparency

Training

Responsibility

Risk Assessment
and Audit

GovernanceSupplier
Diversity

Building upon this framework, 2021 was a year of establishing baselines, planning resources, andaligning around our 2025 goals and ambitions. For example, we:• Created a baseline of current supplier performance using ESG criteria• Leveraged advanced technology solutions for supplier surveys, risk assessment, andengagement• Implemented an engagement strategy for communicating compliance, regulatory, and ESG
challenges and trends• Established a cross-functional approach to supplier diversity• Identified opportunities within key commodities to address environmental impacts

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

Proactively managing our supply chain
With a supply chain footprint that spans over 25 countries on
six continents, Lam has a robust and active approach to engaging
with suppliers, which begins with strong supply chain oversightand governance.
Our ESG Supply Chain team leads our compliance and risk assessment
efforts to drive continuous improvement throughout our supply chain.
We also maintain a cross-functional Supply Chain Committee
comprised of representatives from our direct and indirect supply
chain teams; environmental, health, and safety; ethics and compliance;and ESG. The Committee meets regularly to identify opportunities,
develop plans, and provide input on the implementation of responsible
supply chain initiatives throughout our business.

We expect all third-party suppliers and contractors to operate in a legal,
ethical, and compliant manner and abide by our Global Supplier Codeof Conduct, which covers topics such as ethics, integrity, transparency,
anti-corruption, conflict minerals, human trafficking, environmental
sustainability, and social responsibility. Suppliers are required toacknowledge and agree to the Code during the onboarding process,and our standard terms and conditions of supplier purchase orders andpurchasing contracts stipulate the Code as a contractual obligation.
We expect our suppliers to adhere to the Responsible Business Alliance(RBA) Code of Conduct. This code is a set of standards that address
labor and wages, environment, health, safety as well as ethics andmanagement systems expectations in our supply chains. We expect
adherence to our code of conduct and encourage our suppliers to
become active RBA members and complete an annual RBA selfassessment questionnaire (SAQ).

OUR COMMUNITIESAPPENDIX

2021 Country of origin
direct material spend
European Union 5.9%

Asia 41.9%

North America 52.2%

Our supply chain at a glance

1,450

1.7%

Minerals sourced from smelters in

269

supplier families in over 25 countries

54

countries

spend with diverse suppliers

human rights trainings as stated in
UK Modern Slavery Act

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How we evaluate suppliers
We use a risk-based approach to conduct due diligence assessments on our highest risk suppliers.
Our due diligence activities may involve audits, inspections, and corrective actions where needed.
We are committed to driving continuous improvement throughout our supply chain.
As our supply chain becomes larger, more complex, and faces new disruptions, we are enhancing
the tools we use to support suppliers and evaluate their performance. In 2021, we onboarded a new
supplier engagement platform that will make ESG communication, surveys, and progress tracking
simpler and more accessible. We will be able to import many types of data to this platform, including
survey findings on conflict minerals, GHG emissions, and human rights issues.
Another way that we assess our suppliers’ performance is through our Quality Management System
Assessment (QMS). This comprehensive assessment covers several topics such as forced labor/childlabor, information security, foreign trade, and more conducted via survey and onsite visits. QMS isrequired for every new supplier and we reassess existing suppliers regularly. In 2021, we conducted 16
QMS audits.
We utilize a monthly supplier scorecard and incorporate ESG components as bonus points. Currently
designation as a diverse supplier, membership with the RBA, and ISO 14001 certification each countas a bonus point on the scorecard.

Ensuring our shared success
Lam works closely with suppliers to assess programs and policies, share best practices, andencourage collaboration to help them succeed. We host Town Halls with our top suppliers andhold an annual Supplier Day, an event designed to strengthen collaborative relationships andcreate opportunities to drive continuous improvements in the supply chain.
During Supplier Day 2021, Jami Haaning, Lam’s senior manager of ESG, spoke about our ESG
commitment and expectations of suppliers related to these issues. We also announced thewinners of our Supplier Excellence Awards, given since 2005, to companies demonstrating
exceptional commitment to outstanding performance. The main award categories are for General
Excellence, Ramp Performance, and Rapid Prototype Manufacturing Performance and Excellence.
In 2020, we added an award for ESG. The 2021 winner of this award will be announced at ourinaugural ESG Forum in 2022.

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Working together for a greener world:
Our focus on supplier environmental
performance
A critical issue on which we engage suppliers is their environmental performance, particularly their reduction of GHG emissions.
Lam’s goal to achieve net zero emissions by 2050 is inclusive of the emissions in our supply chain. We have established interim
goals to set us on the right track. By 2025, we aim for 80% of our top-tier suppliers by spend to set their own science-basedtargets for emissions reductions. By 2030, we expect 95% of top-tier suppliers to set these targets. Learn more about our goals
for a responsible supply chain.
We are laying the foundation for future progress through technology, data collection, capacity building, and engagement. In
2021, we expanded our environmental survey to our top 100 suppliers. This survey focuses on GHG emissions, CDP scores,
environmental goals, ISO 14001 certification, and RBA membership status. We prioritized our supplier engagement based on theirtier and the amount of Lam spend. Using our new supplier engagement platform, we will gather more information about suppliers’
GHG baselines and then work with suppliers to establish SBTs. Moving forward, we will engage with suppliers on our evolving
expectations and build incentives to motivate them to meet emissions reduction goals.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXPeter Holland
vice president,
supply chain“We believe that engagement andcollaboration with our supply chain
is one of the most effective ways
to make a meaningful and lasting
impact on our greenhousegas emissions.”

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Acting with intention to upholdhuman rights
Dignified, safe work is a fundamental human right. Just as important as continuous improvement on environmental performance is ensuring
the health and protection of workers in our extended supply chain. We are committed to upholding human rights in our operations and in
our supply chain. We take action to prevent labor violations and promote better working conditions wherever we do business—this includes
complying with laws such as the UK Modern Slavery Act of 2015, and the California Transparency in Supply Chains Act of 2010.
Our Global Supplier Code of Conduct lays out our expectations of suppliers, while our Global Employment Practices Statement declares our
support of workers’ rights to freedom of association and collective bargaining, to the extent permitted under local laws. These documents
are distributed via email, published through our intranet, and made publicly available on our external website.
A potential risk present in manufacturing supply chains is the exploitation of migrant workers who travel to places of work in different
countries. We work with specific suppliers to understand workers’ journeys and require all suppliers to enact policies that prohibit forced
and bonded labor in any form. To prioritize due diligence and risk mitigation, we use the Slavery and Trafficking Risk Template (STRT). We
sent this survey to our top 100 suppliers located in countries identified as high risk for human trafficking in 2020. And in 2021, we followed
up with suppliers based on their results, asking them to provide evidence of compliance with company policies, re-sign our Supplier Code of
Conduct, and, as necessary, undergo training on Lam’s prohibition of forced labor.
Our suppliers and their employees are encouraged to use the Lam Ethics Helpline to report concerns related to human trafficking andforced labor, as well as any other ethical issues. We did not receive any reports from our suppliers regarding human rights issues in 2021.

Conducting due diligence on
conflict minerals
As part of a responsible and ethical raw material sourcing strategy, Lam is a member of the Responsible Mineral Initiative (RMI). The
objective of this multi-stakeholder organization is to help address egregious human rights issues in the mining of tin, tantalum, tungsten,gold, and other minerals of concern.
Since 2012, we have used the Conflict Minerals Reporting Template developed by RMI to assess our suppliers. From our 2021 smelter due
diligence exercise, Lam suppliers used RMI approved smelters in 54 smelter countries. In 2021, 92% of suppliers in scope responded tothis survey. In 2022, we plan to update our due diligence efforts to include additional minerals of concern (such as cobalt and mica), as
recommended by RMI. Our conflict minerals disclosures are available here.

Promoting supply chain excellence
through RBA
Since 2019, Lam has been an affiliate member of the RBA,
the world’s largest industry coalition dedicated to corporate
responsibility in global supply chains. To ensure our own
operations and supply chain adhere to RBA requirements, we
conduct self-assessments to determine our greatest social,environmental, and ethical risks. We also encourage suppliers tojoin us in becoming RBA members.
In 2021, two of our top 10 suppliers, equating to 14% of our spend,joined the RBA. With these new additions, 31% of our total spend
is now with RBA member suppliers.
Beyond general RBA membership, we participate in the multiindustry Responsible Labor Initiative (RLI) and RMI, which
guide our approaches to protecting human rights and ensuring
responsible sourcing of conflict minerals, respectively.

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Fostering supply chain
diversity
We recognize the value of building relationships with small and diverse suppliers, including
minority-, women-, LGBTQIA+-, and veteran-owned businesses, and those owned by people withdisabilities. These diverse businesses drive economic growth and stability in local communities, andour relationships with them help Lam build a more competitive and flexible supply base.
We use diverse suppliers that meet our company’s standards and customer needs and implement
measures to identify diverse suppliers during the onboarding process. We include diversity performancein our supplier scorecard, and track and report spending with diverse direct material suppliers on aquarterly basis. We use this data to facilitate a cross-functional approach to supplier diversity.
The pandemic posed particular challenges with many of our suppliers globally. With KNT
Manufacturing, Inc., with whom we’ve worked closely for many years, we were able to overcome
many of those challenges together.
“As we all know, the impact the COVID-19 pandemic has had and is still having on how
businesses operate, and how employees and their families respond, is unparalleled. We foundour employees feeling more anxious, somewhat isolated and overwhelmed, but still courageously
motivated even through the pandemic as we grew over 55% from 2020 – 2021. Our growth canbe attributed to the constant partnership and business opportunities provided to us by Lam.

25

diverse suppliers$113M

total spend with diverse suppliers

50%

increase in diverse supplierspending over 2020

Although a lot of businesses felt the strain of the pandemic, we felt relieved as our customersupplier relationship with Lam remained intact and is still as strong as ever. Lam has always
fostered a culture of connection with KNT which has constantly been so inviting it left us noalternative but to respond with growth, productivity, and excellence to meet their business andproduct needs.”—Vincent Mays
senior director, business systems & compliance, KNT

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PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXOURCOMMUNITIESWe endeavor to
make a positive
impact where
we live, work,and play.

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Community*
GOAL

Our communities sustain us. They’re the schools that nurture our children, thehospitals that care for our loved ones, and the neighbors who make the places where
we live and work feel like home. So, when we see an opportunity to lend a hand, we
seize it. And when we see a path to advance underrepresented talent, we pave it. Our
culture of caring drives us to inspire young learners, take a stand for what’s right, anddeploy resources to those in need.
For maximum impact, we harness the knowledge and resources of philanthropic
organizations on the ground and the passion and power of Lam employees acrossthe world. In 2021, the Lam Foundation—administered in partnership with the
Silicon Valley Community Foundation—focused on delivering K-12 STEM educationand quality-of-life programs that address human needs, youth support, healthimprovement, and disaster relief. We are proud to not only make an impact that we canmeasure, but one that we can also feel.
Our new social impact platform—Powering Breakthroughs Together—will further
enable us to address pressing sustainability issues and achieve our company purpose
to unleash the power of innovation together for a better world.

RELEVANT SDGSSTATUSPROGRESS TO DATE

Determine key targets forlarger-scale impact aligned toa new strategic focus• Goal achieved by launchingstrategic planning process totransform our philanthropic
identity and targets

Implement measurement ofoutcomes for key program andlarge-scale grants• Not yet started

Increase annual unique employee
participation rate from 10% to 30%• Reached 10% employee
participation in 2021

Increase volunteer hours by 33%
from 2019 baseline• Volunteer hours at 95% of 2019baseline due to COVID-19 impact

2021 highlights• Created Powering Breakthroughs Together social impact platform• Donated $6.2M to support our communities• Served 1,552 worldwide organizations• Contributed $30,000+ gifts in annual Deliver Joy campaign*We aim to achieve goals by 2025, unless otherwise stated.

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Powering Breakthroughs Together
At Lam, we realize potential and inspire innovation. Powering Breakthroughs Together is our new social impact
platform that will help us do just that. Developed in 2021 and launching in 2022, this platform will empower people
to make sustainable progress at scale, with the objective of making meaningful and measurable impact in threestrategic focus areas:

Transformative learning

Resilient communities

We know that curiosity and inspired
learning power breakthroughs, which
is why we invest in the ongoingfoundational elements that lead tocontinuous discoveries
and innovations.

We invest in resilient communities—strengthening the relationships,
technology, and preparedness
and recovery plans that enablecommunities to succeed in
the face of adversity.

Our social impact manifesto
For more than forty years, we’ve defied conventions.

Inclusive societies
We believe successful societies
are inclusive societies. Throughinvestments that facilitate equitable
access and opportunity, we level theplaying field and help communities
reach their full potential.

We look forward to sharing progress against our social impact objectives as weleverage this new platform in 2022 and beyond.

Challenged assumptions.
Pushed the boundaries of technical limitations.
But we know, technology alone doesn’t enable breakthroughs.
Christie Valdez
director of community
relations, ESG“In line with our guiding principles, we
act with purpose for a better world.
We’re excited to advance our ESG
priorities even further through our
new Powering Breakthroughs
Together social
impact platform.”

People do.
They think big to build better communities.
To create safer, more sustainable systems.
To relentlessly pursue innovation that delivers real impact.
When people are empowered to collectively reimagine tomorrow,
we power a better world for generations to come.

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Improving quality of life so
our communities thrive
As a global business that specializes in problem solving and innovation, we use our talent andresources to support underserved populations and improve quality of life for those in need.
Through Lam Foundation grants and matching gift campaigns, we have a proud history ofcontributing to a stronger and more equitable society for all.

Standing with the AAPI community
Intolerance toward others has no place at Lam or in our communities. In response to acts ofhate and discrimination against the Asian American Pacific Islander (AAPI) community, ourcompany spoke out to condemn these actions and through our Foundation we donated$1 million to support programs and initiatives that fight racism and violence. The funds weredispersed between Asian Americans Advancing Justice-AAJC, Stop AAPI Hate, and the Asian
Pacific Fund’s Solidarity Fund.

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

COVID-19 relief and recovery
In 2020, we created a $7M COVID-19 relief and recovery fund that we continued todisperse in 2021 to provide much needed aid in countries around the world. In India,
home to 8% of our employees, we were devastated to see the country experience one of
the worst COVID-19 surges globally.
In response, we donated $1 million, which included $700,000 to Direct Relief and$300,000 to United Way Bengaluru (UWBe), to aid our communities in need. We worked
with UWBe to organize four vaccination drives at local schools, during which nearly 900
students, school staff members, and immediate family members received their first doseof the vaccine. Through UWBe, we also supported the creation of a state-of the-art 18bed pediatric intensive care facility at the Hassan Institute of Medical Sciences.

OUR COMMUNITIESAPPENDIX$1 million
donated to fight racial intolerance
against the AAPI community$1 million
donated to provide COVID-19
relief in India

Additional COVID-19 recovery support:• Arizona - Meals for front-line workers and volunteers in vaccine distribution areas• Austria - Support for Caritas Carinthia Association’s housing, counseling, andchildcare services for those experiencing the longer-term impact of COVID-19• Malaysia - Treatment and medication subsidies for cancer patients with COVID-19
related financial hardships• Ohio - Technology and support resources for virtual and hybrid learning models for
hundreds of students• Oregon - Education, tutoring, and mental wellness resources to combat learning loss
attributed to virtual learning as well as support for transition into hybrid learning

Giving at Lam

12%employee participation

employee hours volunteered

$1.1M

$5.1M

employee matching gifts

National Geographic: https://www.nationalgeographic.com/science/article/how-indias-second-wave-became-the-worst-covid-19-surge-in-the-world5

13,000Rajesh Krishnan
executive director,
UWBe“What stands out to me whileworking with Lam is the intrinsic
qualities that the team embodies,
which speak volumes about thecompany’s culture.”

total Lam donations

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PRODUCTSUSTAINABLE OPERATIONSPowering tomorrow’s
technology leaders
Today’s young thinkers, dreamers, and creators will drive the future of our industry. To help them succeed,in 2021 we supported K-12 STEM programs that inspire and equip students to become the next generationof technology leaders. From scholarships to donations, our STEM education support shows young people
just how fun and exciting a career in math and science can be, while providing opportunities and resources
to build valuable skills.

K-12 STEM programs and scholarships
We proudly work with organizations to engage early learners with a focus on those underrepresented in
STEM careers. Our support extends to programs around the world that address achievement and gender gap
challenges, secondary education preparedness, education quality improvement, and workforce readiness.

Core Values scholarships
Each year, the Lam Foundation awards a series of $10,000 scholarships to graduating seniors from selectschools near our headquarters and in the Pacific Northwest. Community leaders, along with Lam
employees, review applications and choose students who perform exceptionally in academics, as wellas in their communities.
Awardees can use the scholarship at the college or technical school of their choice. In our 18th year of the
program, we awarded $110,000 in scholarships to 11 students from high schools in California and Oregon.
Since 2003, we have awarded more than $1 million in scholarships to more than 100 promising students.

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Building brighter futures through STEM education support
North America
Eureka! program
In Oregon, we continued our relationship with Girls Inc. of the Pacific Northwest to enable 98
girls, grades 8–12, in underserved communities to explore STEM through Eureka!, a five-year,
personal development and sports program.

Latinx in Technology
In California, our ongoing relationship with the Hispanic Foundation of Silicon Valley provided
146 Latinx students with scholarships in 2021 and a pipeline toward summer internships. The
program has a goal of awarding 50% of its scholarships to women.

STEM Learning Academy
Founded in Springfield, Ohio, the Springfield High School STEM Learning Academy provides
STEM education for its students. On behalf of our subsidiary Silfex, we supported STEM
program supplies and experiences for more than 1,800 Springfield High School students.

Asia
Adream Centers
In Sichuan Province, China, we supported
the Adream organization, which provides
a quality education to primary school
students in underprivileged communities.
We funded the 5-year operation of two
new Adream Centers—networks ofmultimedia classrooms where more than
2,000 students can take lessons.

Saumya Chauhan

Hello Coding CampCore Values Scholarship
recipient

In South Korea, we partnered with the Kids & Future Foundation to support 83 Yongin City students'
participation in the Hello Coding Camp afterschool program.

“For me, coding has become a creative
outlet that enables me to combine mypassions for storytelling, design, andanalytical thinking in a challenging,
dynamic way. I want to continue to
do just that at college and in
the workforce.”

Robotics and Coding program
In Taiwan, we continued our support of the Science and Technology Museum’s coding and robotics
programs for 161 elementary and junior high school students from remote and disadvantaged areas.

Crucial School Supplies
Through our India community program, we supported the Sri Sharadha Vidya Mandir school in their efforts
to provide educational supplies and textbooks to more than 900 Bengaluru students.
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Harnessing the passion of
our employees
Our employees are passionate about making a positive impact in the communities where
we live and work. To support the causes they care about, we offer a dollar-for-dollar matchon employees’ monetary donations. The Lam Foundation also matches volunteer time at$10 per hour for all regular full-time employees. In 2021, we mobilized employees to raise$1.1M in employee-matched monetary and volunteer time donations and contribute12,781 volunteer hours to various organizations. Highlights include:

Giving back to communities in need
Our annual holiday giving campaign, Deliver Joy, continued with employees around theworld donating gifts and resources to those in need. From coloring books for kids to carepackages for seniors, here’s how Lam employees gave back to their communities during
the 2020-21 holiday season:
China—In just two weeks, 33 Lam employees mobilized to donate over 500 books, 185 coloring
books, and 60 sets of oil-painting sticks to students in Sichuan Province, where we recently
funded two new Adream Centers.
Malaysia—To brighten the season for patients at a cancer hospital, Lam Manufacturing Malaysia
employees delivered over 150 gifts to patients at Mount Miriam Hospital in Penang.
South Korea—In Icheon, Lam employees donated gift cards to 452 students at 19 children’scenters through ChildFund Korea, as well as heating supplies for 125 children at five local
centers in Pyeongtaek. In Osan, employees involved in the Fun Makers program supported
63 children from low-income families with their year-end toy drive.
U.S.—For an interactive giving opportunity that supports mental wellness, Lam employees
distributed 500 Kynd Kits that included care packages for seniors in assisted living and sensory
kits for children in foster care.

Setting students up for success

Backpacks assembled

Despite the economic strength of Silicon Valley companies, the families of many
students in the area struggle to meet basic needs—let alone afford backpacks andother school supplies. To narrow the equity gap, our Women in Leadership at Lam
ERG supports Family Giving Tree’s annual Backpack Comeback drive in Milpitas,
California. The 12-day virtual event, where employees filled backpacks at home,resulted in 1,200 filled backpacks for students, representing a 140% increase overthe first drive in 2017. In total, Lam employees have assembled 4,330 backpacks
over the past five years.

in 2021

1,200

4,330
since 2017

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Protecting outdoor spaces

Fighting back against hunger

In Boise, Idaho, nine Lam employees volunteered with the Ridge to Rivers organization
to spend half their day helping with shaping and finishing work for a new section of trail.
The trail area was constructed to allow for better erosion protection in the Boise foothills
and will lend itself to hikers, bikers, and other outdoor enthusiasts throughout the area.

In Villach, Austria, employees volunteered more than 10 hours with the local food pantry
and humanitarian services organization, Westbahnhoffnug Villach, to prepare meals for
those in need.

Giving clothing a second life

In Taiwan, employees organized a tree planting activity, enlisting the participation ofcolleagues and their families. The event focused on planting tree varieties that can resist
erosion and protect coastline to preserve a sustainable habitat for migratory birds.

In China, our employees organized a used clothing recycling program, collecting 167
kilograms of used clothes and textiles which have been donated to a national recycling
platform for reuse. These recycled fabrics will be given to those in need or made into
regenerated cotton.

Promoting healthy habits
As the title sponsor of the Lam Research Heart & Soles Run, we support the Silicon
Valley Leadership Group Foundation’s (SVLGF) work to promote increased physicalactivity and access to healthy foods among students in Silicon Valley—because kids
who exercise and eat better, learn better. Though a virtual Run/Walk in 2021, 119 Lam
employees supported this effort that benefited 8,000 Silicon Valley youth.

Planting trees

Bringing a smile to children and families
Lam Korea employees participated in a toy drive that benefited 300 children throughour collaboration with the Korea Childhood Leukemia Foundation. Additionally, theLam Korea Employee Council raised money for ChildFund Korea programs providing
education needs and support for low-income families at local children’s centers.

OUR COMMUNITIESAPPENDIX

Wolfgang Hiden
CPG program manager,
Lam Villach“To cook together with Lam colleagues is an
opportunity to positively impact
our community and build relationships
as a team. Volunteering at
Westbahnhoffnug Villach always
brings a strong sense of
purpose—and a lotof laughter.”

Walking to make an impact
In Singapore, 140 employees laced up to support the Singapore Children’s Society’s
annual Walk for Our Children to benefit programs and services for vulnerable youth. We
have proudly sponsored the walk since 2015.

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Performance Summary*
Data as of 12/31/2021.

Performance Area

2021

YOY Change

2020

2019

Performance Area

2021

YOY Change

2020

2019

Responsible Supply Chain

Business and Governance
Number of full-time employees (Approximate)

16,30033%

12,22810,750Total number of supplier families

1,450

-1%

1,459

--

Revenue1

$14.6

46%

$10.0B$9.7B

Percent of spending on local suppliers (N. America)

66%

34%

49%

--

R&D spend (as percentage of operating expenses)$1.5B (64%)

19%$1.3B (63%)$1.2B (63%)

Total number of diverse suppliers

25

—%

25

4

Total spending on diverse suppliers

$113M

49%

$76M

$34M

Products and Customers
Total number of installed base chambers (Approximate)

75,00014%

66,00061,000

Sustainable Operations

Workplace

Energy and Climate

Gender Representation

Energy consumption (Million kWh)

402

14%

352

330

17.7%

Percent renewables (U.S.)

54%

80%

30%

32%

107,185-7%

114,672

118,458

Percent of employee population identifying as female (Global)

19.5%

5%

18.6%

Percent of employee population identifying as female (U.S)

22.0%

3%

21.3%

20.4%

GHG emissions Scopes 1 and 2 market-based (MTCO2e)

Percent of new hires identifying as female (Global)

21.8%

-9%

23.9%

N/A

Scope 1 emissions (MTCO2e)50,66431%

38,78836,162

Scope 2 emissions location-based (MTCO2e)109,627

26%

87,17083,513

51.4%

Scope 2 emissions market-based (MTCO2e)56,521-26%

75,88482,296

6.7M

N/A

N/A

4.9M

148

36%

109

26

U.S. Ethnicity
White

50.5%

—%

50.5%

Asian

30%

-3%

30.9%

30.8%

GHG emissions Scope 3 (MTCO2e)

Hispanic or Latinx

7.0%

6%

6.6%

6.1%

Volatile organic compounds (Metric tons)

Two or more races

2.9%

30%

2.2%

1.9%

Waste

Black or African American

2.6%

24%

2.1%

1.9%

Hazardous waste recycling rate

24%

6%

22.4%

30.4%

Native Hawaiian or other Pacific Islander

0.7%

30%

0.5%

0.5%

Non-hazardous waste recycling rate

71%

1%

70%

55%

American Indian or Native Alaskan

0.4%

43%

0.3%

0.3%

Water

Not stated

5.9%

-15%

6.9%

7.1%

Water usage (Million gallons)

378

29%

292

276

Water usage in water-stressed regions (Million gallons)

144

27%

114

112

Employee Engagement, Recruitment, and Retention
Employee engagement score (Tech sector benchmark 74)

80

—%

80

new

Ultra-pure water usage (Million gallons)

111

-8%

120

80

Total new hires (Global)

4,507

54%

2067

712

Number of environmental fines

3

50%

2

0

Number of internal promotions

1,936

16%

1,626

1,370

Community

Total number of training courses

4,548

-3%

4,700

3,042

Total giving by the Lam Research Foundation

$5.1M

42%

$3.6M

$3.4M

Education reimbursement for U.S. employees$1.98M20%$1.65M$1.36M

COVID-19 Relief and Recovery Fund giving

$1.7M

-67%

$5.1M

--

Employee retention rate

93%

-2%

95%

91%

Employee volunteer hours

12,781

7%

11,993

13,400

Average service years

6.5

-16%

7.7

8

Employee matching gifts

$1.1M

-35%

$1.7M

$971K

Number of charity organizations supported

1,552

-5%

1,640

1,936

SafetyRecordable injury rate

0.40

60%

0.26

0.34

Risk Management by Walking Around (RMBWA) reviews

206,000

20%

172,050

200,000*All figures are for calendar year, with the exception of revenue and R&D spend which are presented on a fiscal year basis. 2019 is for fiscal year ending June 30, 2019; 2020 is for fiscal year
ending June 28, 2020; 2021 is for fiscal year ending June 27, 2021. K is defined as thousand, M is defined as million, and B is defined as billion.

Lam Research | 68

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index
GRI Standard Disclosure

Response, Page, or Link.

102 - General Disclosures102-1 Name of the Organization

Lam Research Corporation

102-2 Activities, brands, products, and services

Introduction
Product
2021 10-K, Business, pp. 3-9
For additional information: https://www.lamresearch.com/products/products-overview/102-3 Location of headquarters

Fremont, California, USA

102-4 Location of operations

Introduction
Country locations: United States, China, Korea, Austria, India, Japan, Malaysia, Singapore, Taiwan, Belgium, France, Germany, Ireland, Israel, Italy, Switzerland, The
Netherlands, United Kingdom.
For additional information: https://www.lamresearch.com/company/locations/102-5 Ownership and legal form

The company's stock is publicly traded on the Nasdaq Global Select Market under the symbol LRCX.

102-6 Markets served

Lam Research is a trusted, collaborative partner to the world’s leading semiconductor companies.

102-7 Scale of the organization

Introduction
2021 10-K, Consolidated Statements of Operations, p. 41

102-8 Information on employees and other workers

Workplace - U.S. gender and ethnicity
Appendix - 2021 Performance Summary
2021 10-K, Human Capital, p. 10

102-9 Supply chain

Responsible Supply Chain

102-10 Significant changes to the organization and its supply chain

Significant changes include: opening new manufacturing facilities in Bayan Lapas, Malaysia and Sherwood, Oregon.

102-11 Precautionary Principle or approach

Lam affirms Principle 15 of the 1992 Rio Declaration that states, “...where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be
used as a reason for postponing cost-effective measures to prevent environmental degradation.”102-12 External initiatives

United Nations Sustainable Development Goals
Taskforce for Climate-related Financial Disclosure
Science-Based Targets Initiative
CEO Action for Diversity and Inclusion Pledge
Alliance for Global Inclusion
Conference for Engineering Diversity
DEI Board
Anita B.org
Human Rights Campaign Foundation Corporate Equality Index
Responsible Minerals Initiative, Responsible Labor Initiative

Lam Research | 69

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index (continued)
GRI Standard Disclosure

Response, Page, or Link.

102-13 Membership of associations

East Bay Foundation, National Association of Manufacturers, Responsible Business Alliance, SEMI, Semiconductor Industry Association, Silicon Valley Community
Foundation, and Watermark, US-India Strategic Partnership, Inc., US-Korea Business Council, US-Taiwan Business Council, US-China Business Council, Silicon Valley
Leadership Group,102-14 Statement from senior decision-maker

Introduction - A message from our CEO

102-15 Key impacts, risks, and opportunities

Business and Governance
Sustainable Operations - Assessing climate risk
Refer to the Risk Factors disclosed in our public filings with the Securities and Exchange Commission

102-16 Values, principles, standards, and norms of behavior

Business and Governance - Our Values
Global Standards of Business Conduct
Global Supplier Code of Conduct
Code of Ethics

102-17 Mechanisms for advice and concerns about ethics

Business and Governance - Conducting business with integrity - Investigations - Ethics Helpline

102-18 Governance structure

https://investor.lamresearch.com/corporate-governance
Proxy Statement 2021 - pp. 13-16

102-19 Delegating authority

Business and Governance - Lam’s ESG governance structure & primary responsibilities
Proxy Statement 2021 - pp. 18-19

102-20 Executive-level responsibility for economic, environmental,
and social topics

Corporate Vice President of Corporate Communications

102-21 Consulting stakeholders on economic, environmental, andsocial topics

Business and Governance - How We Engage Our Stakeholders

102-22 Composition of the highest governance body and its
committees

https://www.lamresearch.com/company/company-overview/#board-of-directors

102-23 Chair of the highest governance body

The Chairman of the Board is an Independent Director

102-24 Nominating and selecting the highest governance body

Proxy Statement 2021 - pp. 3, 4, 10-12, 57, 67-70

102-25 Conflicts of interest

Proxy Statement 2021 - pp. 7, 9, 14, 29, 56

102-26 Role of highest governance body in setting purpose, values,
and strategy

Business and Governance - Leading with an ESG lens102-27 Collective knowledge of highest governance body

Proxy Statement 2021 - p. 11102-28 Evaluating the highest governance body’s performance

Proxy Statement 2021 - p. 10102-29 Identifying and managing economic, environmental, and social
impacts

Business and Governance - Leading with an ESG lens

102-30 Effectiveness of risk management processes

Business and Governance - Risk Management

https://investor.lamresearch.com/corporate-governance

Proxy Statement 2021 - pp. 14-16, 18
102-31 Review of economic, environmental, and social topics

Business and Governance - Leading with an ESG lens

Lam Research | 70

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index (continued)
GRI Standard Disclosure

Response, Page, or Link.

102-32 Highest governance body’s role in sustainability reporting

Business and Governance - Leading with an ESG lens
Proxy Statement 2021 - pp. 18-19

102-33 Communicating critical concerns

Critical concerns are elevated to the Board of the Directors by the executive management team.

102-35 Remuneration policies

Proxy Statement 2021 - pp. 19-51

102-36 Process for determining remuneration

Proxy Statement 2021 - pp. 19-51

102-37 Stakeholders’ involvement in remuneration

Proxy Statement 2021 - pp. 16-17, 27-28

102-38 Annual total compensation ratio

Proxy Statement 2021 - p. 52

102-39 Percentage increase in annual total compensation ratio

Proxy Statement 2021 - p. 52, Proxy Statement 2020 - p. 50

102-40 List of stakeholder groups

Business and Governance - How We Engage Our Stakeholders

102-41 Collective bargaining agreements

No collective bargaining agreements

102-42 Identifying and selecting stakeholders

Business and Governance - How We Engage Our Stakeholders

102-43 Approach to stakeholder engagement

Business and Governance - How We Engage Our Stakeholders
Creating an inclusive world involves valuing all perspectives and seeking insight from a variety of stakeholders. We regularly engage our key stakeholders in a
spirit of collaboration and trust, seeking their feedback on ESG issues, and considering their perspectives when developing and managing our ESG objectives.
Our engagement with stockholders on ESG topics continues to grow. It is a standard agenda item for our top stockholder meetings and in 2021, we met with19 stockholders holding approximately 35% of our shares outstanding.

102-44 Key topics and concerns raised

Business and Governance - How We Engage Our Stakeholders

102-45 Entities included in the consolidated financial statements

2021 10-K, Exhibit 21

102-46 Defining report content and topic Boundaries

Business and Governance - Making an impact where it matters most

102-47 List of material topics

Business and Governance - Making an impact where it matters most

102-48 Restatements of information

2020 Scope 3 upstream emissions increased from 1,327,895 MTCO2e to 1,329,984 MTCO2e due to updated methodology in calculating our CO2e emission frombusiness travel.
2020 Scope 3 downstream emissions increased from 1,543,485 MTCO2e to 3,573,051 MTCO2e due to an updated dataset and methodology. We re-evaluated theelectricity usage of a subset of our products and revised the average lifetime per product from eight years to 25 years.
2019 Scope 3 total emissions increased from 2.9M to 4.9M.
2020 Scope 1 emissions changed from 37,599 MTCO2e to 38,788 MTCO2e due to additional GHG usage from our manufacturing facility that was notpreviously accounted.
2020 total VOC emission changed from 107 metric tons to 109 metric tons based on updated solvent usage from one of our R&D facilities.
OSHA total recordable injury rate: 2018 - 0.29 to 0.33, 2019 - 0.33 to 0.34, 2020 - 0.25 to 0.26. Changes reflect data that was updated past the time of publication.

102-49 Changes in reporting

No changes in reporting.

102-50 Reporting period

January 1, 2021 - December 31, 2021

102-51 Date of most recent report

June 2021

102-52 Reporting cycle

Annual102-53 Contact point for questions regarding the report

esg@lamresearch.com

102-54 Claims of reporting in accordance with the GRI Standards

This report has been prepared in accordance with the GRI Standards: Core option.

102-55 GRI content index

Yes. The GRI content index meets reporting requirements.

102-56 External assurance

Environmental data is externally assured, with the exception of scope 3 emissions.
Lam Research | 71

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index (continued)
GRI Standard Disclosure

Response, Page, or Link.

Economy201 - Economic Performance103-1 Explanation of the material topic and its boundaryBusiness and Governance103-2 The Management approach and its components

2021 10-K, Consolidated Statements of Operations, p. 41

103-3 Evaluation of the management approach
201-1 Direct economic value generated and distributed

Business and Governance2021 10-K, Consolidated Statements of Operations, p. 41

201-2 Financial implications and other risks and opportunities due toclimate change

Business and Governance - Leading with an ESG lensSustainable Operations - Decarbonizing the world, together
Appendix - TCFD Response
2021 10-K: pp. 16, 18, 21

201-3 Defined benefit plan obligations and other retirement plans

2021 10-K: p. 70
We offer a competitive 401(k) benefit matching 50% of regular pre-tax contributions and/or regular Roth contributions on the first 6% of eligible pay that employees
contribute to the plan. In 2021, 99% of our eligible employees received bonuses.
Stock awards are offered to senior and other selected employees. In 2021, 75% of our employees chose to invest in Lam through our employee stock purchase plan
(ESPP). Eligible employees who work 20 hours or more per week may contribute up to 15% of their earnings to the ESPP (subject to statutory limits) and are eligible topurchase shares at a discount of at least 15%.

203 - Indirect Economic Impact
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components
103-3 Evaluation of the management approach203-2 Significant indirect economic impacts

Communities

205 - Anti-Corruption
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Conducting Business with Integrity

103-2 The Management approach and its components

Global Standards of Business Conduct103-3 Evaluation of the management approach

Global Supplier Code of Conduct
Code of Ethics

205-2 Communication and training about anti-corruption policies andprocedures

Business and Governance

206 - Anti-Competitive Behavior
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Conducting Business with Integrity

103-2 The Management approach and its components

Global Standards of Business Conduct103-3 Evaluation of the management approach

Global Supplier Code of Conduct

206-1 Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

No legal actions and $0 losses as a result of anti-competitive behavior, anti-trust, and monopoly practices.

Lam Research | 72

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index (continued
GRI Standard Disclosure

Response, Page, or Link.

207 - Tax103-1 Explanation of the material topic and its boundaryBusiness and Governance - Global taxation

103-2 The Management approach and its components

2021 10-K - pp. 8-9, 20, 41, 48, 55

103-3 Evaluation of the management approach

United Kingdom Tax Strategy

207-4 Country-by-country reporting

Lam Research does not provide country-by-country reporting on taxes, see 10-K references for overall reporting on taxes.

Environment
302 - Energy103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components

Sustainable Operations

103-3 Evaluation of the management approach

Responsible Supply Chain - Our focus on supplier environmental performance
2021 CDP Response302-1 Energy consumption within the organization

Sustainable Operations - 2021 energy use by type302-3 Energy intensity
302-4 Reduction of energy consumption

Sustainable Operations
Responsible Supply Chain - Our focus on supplier environmental performance

302 -5 Reduction in energy requirements of products and services

Product - Sustainability drives product innovation

303 - Water and Effluents
103-1 Explanation of the material topic and its boundary

Sustainable Operations

103-2 The Management approach and its components

2021 CDP Water Security

103-3 Evaluation of the management approach303-1 Interactions with water as a shared resource

Sustainable Operations - Protecting people and the environment from chemical risks

303-2 Management of water discharge-related impacts

Sustainable Operations - Protecting people and the environment from chemical risks, Wastewater: being a good steward

303-3 Water withdrawal

Sustainable Operations - Water use, treatment and reclamation

303-4 Water discharge

Sustainable Operations - Water use, treatment and reclamation

303-5 Water consumption

Sustainable Operations - Water use, treatment and reclamation

Lam Research | 73

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index (continued)
GRI Standard Disclosure

Response, Page, or Link.

305 - Emissions
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components

Sustainable Operations

103-3 Evaluation of the management approach

Responsible Supply Chain - Our focus on supplier environmental performance
2021 CDP Response

305-1 Direct (Scope 1) GHG emissions

Sustainable Operations - On the path to zero305-2 Energy indirect (Scope 2) GHG emissions

Sustainable Operations - On the path to zero305-3 Other indirect (Scope 3) GHG emissions

Sustainable Operations - On the path to zero305-4 GHG emissions intensity

Sustainable Operations - On the path to zero305-5 Reduction of GHG emissions

Sustainable Operations

306 - Waste
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components

Sustainable Operations

103-3 Evaluation of the management approach
306-1 Waste generation and significant waste-related impacts

Sustainable Operations - Making the most of every material306-2 Management of significant waste-related impacts

Sustainable Operations - Making the most of every material306-3 Waste generated

Sustainable Operations - Making the most of every material306-4 Waste diverted from disposal

Sustainable Operations - Making the most of every material306-5 Waste directed to disposal

Sustainable Operations - Making the most of every material

307 - Environmental Compliance103-1 Explanation of the material topic and its boundaryBusiness and Governance103-2 The Management approach and its components

Product

103-3 Evaluation of the management approach

Sustainable Operations
Responsible Supply Chain
As of December 31, 2021, all Lam manufacturing and laboratory sites, with the exception of two recently opened or acquired sites, had been externally certified to becompliant with ISO International Organization for Standardization (ISO) 14001 certified, the recognized global standard for environmental management systems. We
have two levels of environmental review:* The corporate EHS team conducts regular assessments and audits of business risks, standards conformance, regulatory compliance, and management systemeffectiveness across Lam’s locations world-wide* Our executive management reviews the findings of these assessments and audits and ensures non-conformances are adequately addressed A significant environmental
aspect of our operations is chemical management, and we take all appropriate measures to keep our chemical operations safe and legally compliant. Our integrated
inventory system connects real-time inventory to procurement, usage conditions, and regulatory reporting for our chemical users, handlers, and planners. We use thissystem to continuously identify and implement safety controls and report the use and treatment of chemicals in accordance with government regulations.

307-1 Non-compliance with environmental laws and regulations

The global Lam sites had 25 regulatory agency inspections, including 18 health and safety inspections, and 7 environmental-related inspections. We received 3
environmental Notice of Violations (NOVs) and paid $2,900 in total fines.

Lam Research | 74

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index (continued)
GRI Standard Disclosure

Response, Page, or Link.

308 - Supplier Environmental Assessment
103-1 Explanation of the material topic and its boundary
103-2 The Management approach and its components
103-3 Evaluation of the management approach308-1 New suppliers that were screened using environmental criteria

Responsible Supply Chain
We expect our suppliers to make every effort to reduce impact on the environment by meeting standards established by applicable environmental legislation.

Social103 - Management Approach to Social Topics
401 - Employment103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components

Workplace103-3 Evaluation of the management approach
401-1 New employee hires and employee turnoverAppendix - Performance summary

401-2 Benefits provided to full-time employees that are not provided
to temporary or part-time employees

Workplace - Looking out for our employees’ well being

403 - Occupational Health and Safety
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components

Workplace - Committed to safety

103-3 Evaluation of the management approach403-1 Occupational health and safety management system

Workplace - Committed to safety403-3 Occupational health services

Workplace - Committed to safety403-4 Worker participation, consultation, and communication on
occupational health and safety

Workplace - Committed to safety403-5 Worker training on occupational health and safety

Workplace - Committed to safety403-6 Promotion of worker healthWorkplace - Employee benefits403-7 Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

Workplace - Committed to safety

403-9 Work-related injuries

Workplace - Total recordable injury rate

404 - Training and Education
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components

Workplace - Focusing on employee development

103-3 Evaluation of the management approach404-1 Average hours of training per year per employee

Average hours of training per employee: 28 hours

404-2 Programs for upgrading employee skills and transition
assistance programs

Workplace - Focusing on employee development

Lam Research | 75

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index (continued)
GRI Standard Disclosure

Response, Page, or Link.

405 - Diversity and Equal Opportunity
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most, Leading with an ESG lens103-2 The Management approach and its components

Workplace - Moving the needle on I&D

103-3 Evaluation of the management approach

Corporate Governance Guidelines

405-1 Diversity of governance bodies and employees

Workplace - Global gender representation, 2021 workforce representation https://www.lamresearch.com/company/company-overview/#board-of-directors

407 - Freedom of Association and Collective Bargaining
103-1 Explanation of the material topic and its boundary

Responsible Supply Chain - Acting with intention to uphold human rights

103-2 The Management approach and its components

Global Employment Practices Statement103-3 Evaluation of the management approach407-1 Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

Lam is not aware of any operations or major direct suppliers in which right to freedom of association and collective bargaining (to the extent permitted under locallaws) was at risk in 2021.

408 - Child Labor
103-1 Explanation of the material topic and its boundary

Responsible Supply Chain - Acting with intention to uphold human rights, How we evaluate suppliers

103-2 The Management approach and its components

Global Supplier Code of Conduct103-3 Evaluation of the management approach408-1 Operations and suppliers at significant risk for incidents ofchild labor

Lam is not aware of any operations or major direct suppliers that were at significant risk for incidents of child labor in 2021.

409 - Forced or Compulsory Labor
103-1 Explanation of the material topic and its boundary

Responsible Supply Chain - Acting with intention to uphold human rights, How we evaluate suppliers

103-2 The Management approach and its components

Global Supplier Code of Conduct103-3 Evaluation of the management approach409-1 Operations and suppliers at significant risk for incidents offorced or compulsory labor

Lam is not aware of any operations or major direct suppliers that were at significant risk for incidents of forced or compulsory labor in 2021. Lam respects human rights
and is committed to adhering to humane business practices wherever the company does business, including complying with laws such as the UK Modern Slavery Act
of 2015 and the California Transparency in Supply Chains Act of 2010.

Lam Research | 76

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index (continued)
GRI Standard Disclosure

Response, Page, or Link.

412 - Human Rights Assessment
103-1 Explanation of the material topic and its boundary
103-2 The Management approach and its components
103-3 Evaluation of the management approach412-1 Operations that have been subject to human rights reviews or
impact assessments

Responsible Supply Chain - Acting with intention to uphold human rights, How we evaluate suppliers
Global Supplier Code of Conduct
Our anti-slavery, child labor, and human trafficking due diligence includes compliance with the Countering America’s Adversaries Through Sanctions Act (CAATSA),
which focuses on the prevention of North Korean forced labor. As part of our supplier engagement, we require suppliers complete a self-assessment survey that
supports our risk assessment process. We evaluate our top 100 suppliers with operations in high risk regions for human trafficking.
Since 2012, we conduct annual due diligence of our suppliers to determine the sources of any conflict minerals that may be contained in our products. We updated ourconflict minerals due diligence program to include responsible sourcing of cobalt in 2019.

412-2 Employee training on human rights policies or procedures

Responsible Supply Chain - Acting with intention to uphold human rights

412-3 Significant investment agreements and contracts that include
human rights clauses or that underwent human rights screening

Responsible Supply Chain - Acting with intention to uphold human rights, How we evaluate suppliers
Lam endeavors to include human rights provisions in contracts with its suppliers, as appropriate

413 - Local Communities
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components

Community103-3 Evaluation of the management approach413-1 Operations with local community engagement, impact
assessments, and development programs

Community

414 - Suppler Social Assessment
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components

Responsible Supply Chain - Acting with intention to uphold human rights, How we evaluate suppliers

103-3 Evaluation of the management approach414-1 New suppliers that were screened using social criteria

Responsible Supply Chain - Acting with intention to uphold human rights, How we evaluate suppliers
Lam values a diverse supply chain and is committed to selecting diverse suppliers that offer goods and services that meet our company’s standards, supplier selection
criteria, and customer requirements. Promoting a diverse supplier base is a priority for Lam, and we support a number of industry and customer initiatives aroundsupplier diversity. Diversity is also included in our supplier scorecard, and we track and report spending with diverse direct material suppliers on a quarterly basis. We
are using this data to facilitate a cross-functional approach to supplier diversity.
We are a member of the SEMI (formerly Semiconductor Equipment and Materials International) Manufacturing Ownership Diversity Task Force that promotes andshares best practices for manufacturing ownership diversity (more commonly known as “supplier diversity.”)"Lam Research | 77

2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXGRI index (continued)
GRI Standard Disclosure

Response, Page, or Link.

415 - Public Policy
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Government Affairs

103-2 The Management approach and its components
103-3 Evaluation of the management approach
415-1 Political contributions

Business and Governance - Government Affairs
No financial and in-kind political contributions made directly and indirectly. https://investor.lamresearch.com/static-files/7b18772f-f0be-4791-8800-f5118110f8d6

416 - Customer Health and Safety
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components

Product - Leading product safety in our industry

103-3 Evaluation of the management approach
416-1 Assessment of the health and safety impacts of product andservice categories

Product - Leading product safety in our industry

418 - Customer Privacy
103-1 Explanation of the material topic and its boundaryBusiness and Governance - Protecting data and intellectual property

103-2 The Management approach and its components
103-3 Evaluation of the management approach418-1 Substantiated complaints regarding concerning breaches ofcustomer privacy and losses of customer data

Business and Governance - Protecting data and intellectual property
In 2021, we did not experience any cyber incidents that resulted in a material adverse effect, nor any losses or breaches of customer data that resulted in a material
adverse effect.

419 - Socioeconomic Compliance103-1 Explanation of the material topic and its boundaryBusiness and Governance - Making an impact where it matters most103-2 The Management approach and its components
103-3 Evaluation of the management approach419-1 Non-compliance with laws and regulations in the social andeconomic area

2021 10-K, p. 71

Lam Research | 78

INTRODUCTION

2021 ESG Report

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXSASB - Technology and communications - Semiconductors
Topic

Code

Accounting Metric

Disclosure

Activity Metrics

TC-SC-000.A

Total production

Approximately 9,000 chambers

TC-SC-000.B:

Percentage of production from owned facilities

All process modules are assembled, tested, and inspected for quality at Lam facilities.

TC-SC-110a.1:(1) Gross global Scope 1 emissions(1) 50,6644 MTCO2e(2) amount of total emissions from perfluorinated compounds(2) 16,054 MTCO2e

TC-SC-110a.2:

Discussion of long-term and short-term strategy or plan to manage Scope 1
emissions, emissions reduction targets, and an analysis of performance against
those targets.

Sustainable Operations - Decarbonizing the world, together

TC-SC-130a.1:(1) Total energy consumed(1) 406 million kWh(2) percentage grid electricity(2) 99%(3) percentage renewable(3) 54%(1) Total water withdrawn(1) 377 million gallons(2) total consumed percentage of each in regions with water High or Extremely HighBaseline Water Stress(2) 38%(1) Amount of hazardous waste from manufacturing(1) 2,208 metric tons

(2) Percentage recycled"(2) 24%

GHG Emissions

Energy Management

Water Management

Waste Management
Employee Health and Safety

Recruiting and Managing a
Global and Skilled Workforce

Product Lifecycle
Management

Materials Sourcing

TC-SC-140a.1:

TC-SC-150a.1:
TC-SC-320a.1:

Description of efforts to assess, monitor, and reduce exposure of employees to human Workplace - Committed to safety
health hazards.

TC-SC-320a.2:

Total amount of monetary losses as a result of legal proceedings associated with
employee health and safety violations$0

TC-SC-330a.1:

Percentage of employees that are:(1) foreign nationals(2) located offshore"(1) Not disclosed.

Percentage of products by revenue that contain IEC 62474 declarable substances

Not disclosed.

TC-SC-410a.1:(2) Not disclosed.
Lam Research does not believe this is a material metric to our business due to our global
footprint. A breakdown of employees by region and other material human capital metrics areavailable in the Introduction section as well as in Workplace - Moving the needle on I&D.
Lam Research discloses information on our strategy and product value chains. We do not believethat percentage of revenue is a material metric to disclose.

TC-SC-410a.2:

Processor energy efficiency at a system-level for: (1) servers, (2) desktops, and (3)laptops

Not Applicable. Lam Research does not manufacture servers, desktops, or laptops.

TC-SC-440a.1

Description of the management of risks associated with the use of critical materials

Product
Supply ChainIntellectual Property
Protection and Competitive
Behavior

TC-SC-520a.1:

Total amount of monetary losses as a result of legal proceedings associated with
anticompetitive behavior regulations.

$0

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Disclosure Focus Area

Recommended Disclosure

Response

Referencea) Describe the board’s oversightof climate-related risks andopportunities.

Our Board is actively engaged in ESG oversight. The Nominating and Governance Committee has the primary
CDP Climate Change 2021 C1.1a, C1.1b
responsibility for our ESG priorities, including reviewing our 2025, 2030, and 2050 climate and energy goals andour 2025 waste and water goals. In 2021, management provided updates to the Board and its committees atleast quarterly and engaged them to discuss ESG strategy, gain alignment on goals, and report on progress. The
full Board reviews the annual ESG Report before it is published.

b) Describe management’s role inassessing and managing climaterelated risks and opportunities.

We formed a new Executive Steering Committee in 2020 to guide our ESG strategy, approve and support
initiatives, and help keep us accountable. The CEO and members of the CEO staff participate on thiscommittee which oversees the work driven by our cross-functional ESG Leadership Team.

Governance
Disclose the organization’s
governance around climaterelated risks and opportunities.

In 2021, we formed a new net zero leadership team that is responsible for working with business units tointegrate climate considerations into decision-making processes, driving progress on our net zero strategy,
and tracking GHG performance on our climate goals. Each of our active working groups has an accountable
executive responsible for the activity and progress toward our net zero goal.

Introduction - Leading with an ESG lens
CDP Climate Change 2021 C1.1a, C1.1b, C1.2, C1.2a,
C1.3, C1.3a

Strategy
Disclose the actual and potential
impacts of climate-relatedrisks and opportunities on theorganization’s businesses,
strategy and financial planning.

a) Describe the climate-related risks
and opportunities the organization
has identified over the short,medium, and long term.

Through a Climate Risk Analysis conducted in conjunction with a third-party, Lam Research has identified a
range of potential physical, market/technology and policy/legal risks and opportunities.

Sustainable Operations - Decarbonizing the world,
together

Risks:• Changing customer expectations• Competitors developing lower-impact products• Operational disruptions from flooding, natural hazards, rising temperatures, and/or water stress• Natural hazards leading to supply chain disruptions and/or preventing access to the operational workplace• Regulation of Lam’s direct operations, customer operations, and/or raw materials (e.g., carbon pricing)• Reputational impacts from poor performance on external climate-related engagements• Water stress impacting major customer operations

CDP Climate Change 2021 C2.1a, C2.3, C2.3a, C2.3b,C2.4, C2.4a, C3.1, C3.3, C3.4

Opportunities:• Expansion of end-use markets• Improving resilience of business operations through asset hardening• Operational footprint reduction• Reduced resource consumption of sold products
Lam is factoring these potential risks and opportunities into the development of less energy intensive
products, capital funding for climate-related operations projects, including energy conservation, and throughengaging with suppliers on environmental sustainability opportunities. The physical risks are incorporated
into the business continuity planning activities across the company and vary based on site-specific risk profiles.
b) Describe the impact of climaterelated risks and opportunities
on the organization’s businesses,
strategy, and financial planning.
c) Describe the resilience of theorganization’s strategy, taking into
consideration different climaterelated scenarios, including a 2°C or
lower scenario.

Sustainable Operations - Decarbonizing the world,
together
Responsible Supply Chain - Our focus on supplierenvironmental performance
CDP Climate Change 2021 C2.4a, C3.1, C3.3, C3.4
Lam has begun to undertake a qualitative scenario analysis with plans to add quantitative in the next two
years. To bolster Lam's resilience against the various climate-related scenarios, the company is:• Undertaking deeper analysis on the climate risks that may have the potential to impact Lam such as
reputational and customer expectation risks, along with potential regulation.
• Incorporating those risks into our risk management system• Developing plans to mitigate those risks over time
• Setting short-, medium-, and long-term climate goals to mitigate our operational impacts• Developing plans to address our carbon impacts across our value chain – including our supply chain,
operations, and product use

Sustainable Operations - Decarbonizing the world,
together
CDP Climate Change 2021 C3.2, C3.2a

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Disclosure Focus Area

Recommended Disclosure

Response

Reference

Lam conducted a qualitative climate risk analysis that involved engaging internal stakeholders, conducting
research, and applying our internal risk rating system to assess the likelihood and impact of those potential
climate risks.

Sustainable Operations - Decarbonizing the world,
together

Risk Management
Disclose how the organizationa) Describe the organization’s
identifies, assesses and manages processes for identifying andclimate-related risks.
assessing climate-related risks.

Lam has an established enterprise risk management system, which we aim to utilize to address any identified
material climate risks in the future. We also have a robust EH&S risk inventory system and process forevaluating our risks in accordance with our ISO 14001 certification. More details can be found in our
CDP disclosure.

CDP Climate Change 2021 C2.

b) Describe the organization’s
processes for managing climaterelated risks.
c) Describe how processes
for identifying, assessing, andmanaging climate-related risks areintegrated into the organization’s
overall risk management.

Metrics and Targets
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks andopportunities.

a) Disclose the metrics used by
the organization to assess climaterelated risks and opportunities
in line with its strategy and risk
management process.

Lam Research monitors several metrics to measure progress toward achieving our 2025, 2030 and 2050 net
zero goals including emissions generated and energy consumption metrics.

b) Disclose Scope 1, Scope 2, and,if appropriate, Scope 3 greenhousegas (GHG) emissions, and therelated risks.

Please refer to our reporting on Scope 1, 2, and 3 emissions on page 31 of the Sustainable Operations section.

c) Describe the targets used by theorganization to manage climaterelated risks and opportunities andperformance against targets.

Targets:- Achieve 100% renewable energy globally by 2030
- Reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions 25% by 2025 and 46% by 2030 from a2019 baseline- Achieve net zero carbon emissions by 2050
- Achieve 12 million kWh in total energy savings from a 2019 baseline

Sustainable Operations - Decarbonizing the world,
together
Appendix - Performance Summary

See Strategy section for emissions-related risks.

Sustainable Operations - Decarbonizing the world,
together
Appendix - Performance Summary
Introduction - Achieving our ESG goals
Sustainable Operations - Decarbonizing the world,
togetherSee Introduction - Achieving our ESG goals for performance against targets.

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Assurance statement

Independent Assurance Statement
Introduction

DNV Business Assurance USA, Inc. (DNV) has been commissioned by the management of Lam Research Corporation (Lam) to carry out an independent limited levelassurance engagement of Selected Information for calendar year 2021 and, where marked, for Calendar Years 2019 and 2020, as presented in Lam’s 2021 Sustainability
Disclosures (the “Report”). The assurance was carried out March through May 2022.
Lam has sole responsibility for preparation of the data and external report. DNV, in performing our assurance work, is responsible to the management of Lam. Our
assurance statement, however, represents our independent opinion and is intended to inform all stakeholders including Lam.

Scope of Assurance

The scope of work agreed with Lam includes the following:
Organizational boundary• All global facilities under Lam’s operational control
Data Verified for the period of January 1, 2021, toDecember 31, 2021 (CY 2021)• GHG Emissions Scope 1 and 2• Energy Consumption• Energy Savings• Waste & Waste Data Diversion Rate (including
Hazardous Waste)• Total Recordable Incident Rate (TRIR)
Data Verified for the period of January 1, 2020, toDecember 31, 2020 (CY 2020)• GHG Emissions Scope 1 and 2

Topic
Topic

Accounting
AccountingMetric
MetricUnit of Measure

Greenhouse
Greenhouse
Gas
GasEmissions
Emissions(1) 2021 Gross
Gross global
global Scope
Scope11 andand22emissions
emissions(2)
1 1and(2) 2020
2020Gross
Grossglobal
globalScope
Scope
and2 2emissions
emissions(3)(3) 2019
2019 Gross
Grossglobal
globalScope
Scope11andand22emissions
emissions

Metric tons (MT)
CO
2e
CO2e

EnergyEnergyConsumption
Consumption(1) 2021 Total energy consumed

Kilowatt hrs
hrs (kWh)(kWh)

Energy Savings

EnergySavings(1)
2021Energy
Energysavings
savings achievedachieved(1) 2021

Kilowatt hrs
hrs (kWh)
(kWh)

Waste
Waste
Management
Management(1) 2021
2021Total
Totalamountamountofofhazardous
hazardouswaste
waste
(2)
2021Total
Totalamountamountnon-hazardous
non-hazardouswaste
waste generated
generated Metric tons (MT)(2) 2021(3)
2021Total
Totalpercentage
percentagehazardous
hazardous waste
waste recycled
recycled
Percentage(3) 2021
Percentage(%)
(%)
(4)
2021
Total
non-hazardous
waste
recycled(4) 2021 Total non-hazardous waste recycled

Employee

Employee(1) Total Recordable
Health &Recordable Incident
Incident Rate
Rate(TRIR)(TRIR)
Health & Safety

Data Verified for the period of January 1, 2019, toDecember 31, 2019 (CY 2019)• GHG Emissions Scope 1 and 2

Rate per 200,000
200,000 hrs
hrs

SafetyWe do not express conclusions on other information that may
be published on Lam’s website or sustainability disclosures
for the current reporting period or previous periods.

Progress
Progresstowards
towards 2025
2025
Goals
Goals

Scope11 andand 22 emissions
emissions(market-based)(market-based)(1) 2021 GHG
GHG Scopechangechangeagainst
against20192019baseline
baseline(2)(2) Hazardous
Hazardouswaste
wastetotolandfill
landfill

Percentage (%)

Percentage (%)

DNV Business Assurance USA, Inc. (DNV), 1400 Ravello Dr. Katy, TX 77449

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Assurance statement (continued)
Level of Assurance

We performed a limited assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (revised) – ‘Assurance
Engagements other than Audits and Reviews of Historical Financial Information’, issued by the International Auditing and Assurance Standards Board. This standard
requires that we comply with ethical requirements and plan and perform the assurance engagement to obtain limited assurance.
DNV applies its own management standards and compliance policies for quality control, in accordance with ISO/IEC 17021:2015-1 - Conformity Assessment Requirements
for bodies providing audit and certification of management systems, and accordingly maintains a comprehensive system of quality control including documented policies
and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
The procedures performed in a limited assurance engagement vary in nature and timing and are less detailed than those undertaken during a reasonable assurance
engagement, so the level of assurance obtained is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been
performed. We planned and performed our work to obtain the evidence we considered sufficient to provide a basis for our opinion, so that the risk of this conclusion
being in error is reduced, but not reduced completely.
DNV’s assurance engagements are based on the assumption that the data and information provided by the client to us as part of our review have been provided in goodfaith. This includes but is not limited to sales and acquisitions, building occupancy rates and operating hours, and financial/operational control. DNV expressly disclaims
any liability or co-responsibility for any decision a person or an entity may make based on this Independent Assurance Statement.

Assurance Team

Role
Project Manager/Verifier
Manager/Verifier
Lead
Verifier
Lead Verifier
Lead
Lead Verifier
Verifier
Technical
Technical Reviewer
Reviewer

Name
Name

Angela Reed
Reed
AngelaKyle Silon
Silon
Kyle
Stephen Carlson
CarlsonStephenShruthi Bachamanda
Bachamanda
Shruthi

Assurance Methodology

DNV is a leading provider of sustainability services, including verification of GHG emissions data and other environmental metrics. Our environmental and social
assurance specialists work in over 100 countries.
In that respect, the environmental footprint inventories have been evaluated against the following reporting criteria:•

World Business Council for Sustainable Development (WBCSD) / World Resources institute (WRI) Greenhouse Gas Protocol, A Corporate Accounting
and Reporting Standard REVISED EDITIONDNV used a risk-based approach throughout the assurance engagement, concentrating on the areas that we believe are most material for both Lam and its stakeholders.
DNV applied a materiality threshold of five percent for all data in scope.

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Assurance statement (continued)
The assurance process involved a series of 60-minute interviews with the accountable party(ies) and/or senior manager(s) responsible for collating the information at a
corporate level to:• Perform a walkthrough to understand how data is managed and reported and the systems, legal registers, processes, and procedures used
• Interview of managers and data users representing relevant functions for supporting the environmental inventory and safety data
management process• Review the controls in place to confirm data and information accuracy• Confirm the scope and boundaries of the data included• Requests for further evidence and documentation in support of testimony and system observations
The assurance process includes desk review of the submitted documentation, data records and sources relating to the selected performance metrics andcorporate environmental footprint data claims.
• Review of the processes and tools used to collect, aggregate, and report on all data and metrics• Assessment of environmental and other information systems and controls, including:o Selection and management of all relevant environmental and safety data and informationo Processes for collecting, processing, consolidating, and reporting the environmental and safety data and informationo Systems and processes that ensure the accuracy of the performance data and informationo Design and maintenance of the environmental and employee workforce and safety information systemo Systems and processes that support the environmental and employee workforce and safety information systemo Performed sample-based audits of the processes for generating, gathering, and managing the data
• Performed key data recalculations to confirm accuracy• Examination of the social, governance, and environmental data and information to develop evidence for the assessment of the claims andassertions made• Evaluation of whether the organization conforms to the reporting criteria• Evaluation of whether the evidence and data are sufficient and support Lam’s environmental, social and performance claims• Conducted remote site assessment at Fremont, California to review GHG emissions, energy, waste, and health and safety management
In addition to the above, specific to the environmental indicators, the following steps were conducted for Energy Savings and Waste:
Energy Savings• Review of energy conservation measures implemented in the reporting year
• Conducted sample-based review of the process for quantifying energy savings performance including:o Evaluation of reasonableness and conservativeness of assumptions related to energy baseline and savings calculated from energy
conservation measures
o Desk-based review of energy calculations provided by Lam and energy consultants
Waste• Review of the waste segregation methodology and description of waste categorization• Conduct data checks for the waste data collected, transferred, and calculated• Perform sample-based assessment of data reported against the source data (waste collected to landfill and waste diverted) provided bywaste management companies.
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Assurance statement (continued)
Data Verified
Greenhouse Gas Emissions – CY2021• Scope 1 Emissions• Scope 2 Emissions (location-based)• Scope 2 Emissions (market-based)

50,664 MT CO2e109,627 MT CO2e56,521 MT CO2e

Greenhouse Gas Emissions – CY2020• Scope 1 Emissions• Scope 2 Emissions (location-based)• Scope 2 Emissions (market-based)

38,788 MT CO2e87,170 MT CO2e75,884 MT CO2e

Greenhouse Gas Emissions – CY2019• Scope 1 Emissions• Scope 2 Emissions (location-based)• Scope 2 Emissions (market-based)

36,162 MT CO2e
83,513 MT CO2e82,296 MT CO2e

Energy Consumption – CY2021• Total Energy Consumed

402,343,642 kWh

Energy Savings – CY2021• Energy Savings Achieved

Greater than 2,000,000 kWh

Waste – CY2021• Total Hazardous Waste• Hazardous Waste Recycled

2,208 MT
24%••

Total Non-Hazardous Waste
Non-hazardous Waste Recycled

8,505 MT71%

Employee Health & Safety – CY 2021
• Total Recordable Incident Rate (TRIR)

0.40

Progress towards 2025 ESG Goals• CY 2021 Scope 1 and 2 (market-based) emissions against 2019 baseline• CY 2020 Scope 1 and 2 (market-based) emissions against 2019 baseline• CY 2021 Hazardous Waste to Landfill- 9.5%- 3.2%
1%

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Assurance statement (continued)
Inherent Limitations

Due to the selective nature (sampling) and other inherent limitations of both procedures and systems of internal control, there remains the unavoidable risk thaterrors or irregularities may not have been detected. Calculations of energy savings are subject to inherent limitations, given the nature and the methods used for
determining such data. DNV did not conduct independent measurement of the energy savings variables. This is a limitation which can influence the accuracy of ouropinion. Finally, the selection of different but acceptable measurement techniques, in particular related to the waste and energy savings performance, may resultin materially different measurements.

Assurance Opinion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the informationand data within the Report is not fairly stated and has not been prepared, in all material respects, in accordance with the criteria stated. This conclusion relates only
to the information in the Report and is to be read in the context of this Assurance Statement.

Independence

DNV was not involved in the preparation of any part of Lam’s data or report. This is our first year of providing assurance for Lam. We adopt a balanced approach
towards all stakeholders when performing our evaluation.

DNV Business Assurance USA, Inc.
Katy, Texas
June 22, 2022-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------This Statement is for the sole use and benefit of the party contracting with DNV Business Assurance USA, Inc. to produce this Statement (the “Client”). Any use of or reliance on this document by any party other thanthe Client shall be at the sole risk of such party. In no event will DNV or any of its parent or affiliate companies, or their respective directors, officers, shareholders, employees, or subcontractors, be liable to any otherparty regarding any statements, findings, conclusions, or other content in this Statement, or for any use of, reliance on, accuracy, or adequacy of this Statement
About DNV
Driven by our purpose of safeguarding life, property, and the environment, DNV enables organizations to advance the safety and sustainability of their business. Combining leading technical and operational expertise,risk methodology and in-depth industry knowledge, we empower our customers’ decisions and actions with trust and confidence.

We continuously invest in research and collaborative innovation to provide customers

and society with operational and technological foresight.

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Assurance statement (continued)
Appendix. Selected Information’s Criteria

Topic
Topic

Criteria
Criteria

Greenhouse Gas
Emissions/ Energy
EnergyConsumption

World(WBCSD) / World
Resourcesinstituteinstitute(WRI)(WRI)Greenhouse
GreenhouseGas
GasProtocol,
Protocol,A ACorporate
Corporate
WorldBusinessBusinessCouncil
Councilfor
forSustainable
Sustainable Development
Development (WBCSD)World Resources
Accounting
Accountingand
andReporting
ReportingStandard
StandardREVISEDREVISEDEDITIONEDITION

EnergyEnergy Savings
Savings

Description:
Methodology:
Unit of
Description:
Methodology:
Unitof measure:measure:(1) 2021
2021 Energy
Totalsumsumof
ofenergy
energy savings
savings achievedachieved across Kilowatt
Kilowatt hours(1)
Energy savings
savings achievedachieved
Total
hours (kWh)(kWh)
Energysavings
achievedasaresultofenergyconservation
measuresacrossall
ECMS
implementedintheEnergy savings achieved as a result of energy conservation measures all ECMS implemented in the reporting(ECM)implemented
implemented at allreporting year.
(ECM)
all global
globalfacilities
facilitiesunder
underLam’s
Lam’soperational
operational
year.
control
the reporting
reportingyear.
year.Savings
Savingsquantified
quantifiedinincomparison
comparison
control in the
toto
energy(energy consumption
consumptionoccurring
occurringwithout
withoutimplemented
energy baseline (energy
implemented
ECM.)
ECM.)

Description:
Description:(1) 2021
2021 Total(1)
Totalamountamountofofhazardous
hazardouswaste
waste
Hazardous waste generated
generated atHazardous
at allallglobal
globalfacilities
facilitiesunder
underLam’s
Lam’s
operational
controlininthe
thereporting
reportingyear.
year.
operational control

Waste Management
Management(2)20212021 Total
Total amount(2)
amountnon-hazardous
non-hazardouswaste
wastegenerated
generated
Non-hazardous
waste
generatedatallglobalNon-hazardous waste generated at all globalfacilities
facilitiesunder
underLam’s
Lam’s
operational
controlinthereportingyear.
operational control in the reporting year.
(3) 2021 Total percentage hazardous waste recycled(3) 2021 Total percentage hazardous waste recycled
Hazardous waste disposed by means of recycling across global
Hazardous waste disposed by means of recycling across global
facilities under Lam’s operational control in the reporting year.
facilities under Lam’s operational control in the reporting year.
(4) 2021 Total non-hazardous waste recycled(4)2021 Total non-hazardous
waste
recycled
Non-hazardous
waste disposedby meansof recycling across global
Non-hazardous
waste
disposedbymeans
recycling
acrossfacilities under Lam’s operational control inof
thereportingyear. global
facilities under Lam’s operational control in the reporting year.

Employee Health &&SafetySafetyMethodology:
Unit of
Methodology:
Unitof Measure:
Measure:(1)Total
Totalsumsum ofof hazardous waste generated(1) Metric
Metric tons
(1)
generated (1)tons(MT)(MT)crossglobal
globalfacilities
facilitiesin
inthe
the reporting
reporting year.
year.
(2) Metrics
Metrics tons (MT)
cross
(2)
(3)
(3) Percentage
Percentage (%)(%)(2)Total
Totalsumsumof
ofnon-hazardous
non-hazardous waste
waste
(2)
(4)
(4)Percentage
Percentage (%)(%)
generated
acrossglobalfacilities
undergenerated across global facilities under
Lam’soperational
operational control
control in
Lam’sin thethe reporting
reporting
year.
year.
(3) Total metric tons of hazardous waste(3) Total metric tons of hazardous waste
recycled / total metric tons of hazardous
recycled / total metric tons of hazardous
waste generated X 100
waste generated X 100(4) Total metric tons of non-hazardous(4)
Totalrecycled
metric tons
ofmetric
non-hazardous
waste/ totaltons of nonwaste
recycled/
total
metrichazardous waste generated Xtons
100 of nonhazardous waste generated X 100(1) Total Recordable
Methodology:
Unit of(1)
Recordable Incident
IncidentRate
Rate(TRIR)(TRIR)
Methodology:
Unitof measure:measure:Number of incidents reported
againstRate per 200,000
Numberreportedper
per100100fullfulltime
timeemployees
employees
against the (Total number of incidents X 200,000) / Full Rate
200,000 hrs
hrs(Total number of incidents X 200,000) / Fullthe numberof hours
worked.InIn2021
2021 reportinghours
numberof hours
worked.
reportingyear,
year,employee
employee
hours time equivalent headcount X 2080
time equivalent headcount X 2080
worked was assumed
workedassumed to
to bebe2080,2080,perperLamLamfullfulltime
timeemployees.
employees.

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Cautionary statement
With the exception of historical facts, the statements contained in this ESG Report (“Report”) are forward-looking statements. Forward-looking statements are subject to the safe harbor provisions created by the Private
Securities Litigation Reform Act of 1995. Certain, but not all, of the forward-looking statements in this Report are specifically identified as forward-looking by the use of words and phrases such as “aim,” “anticipate,”“aspire,” “believe,” “build,” “commitment,” “continue,” “could,” “expand,” “expect,” “future,” “goal,” “increase,” “intend,” “maintain,” “may,” “objectives,” “opportunities,” “path,” “plan,” “remain,” “should,” “strategy,” “strive,”“target,” “vision,” “will,” and “would.” However, our identification of certain statements as forward-looking does not mean that other statements not specifically identified are not forward-looking. Forward-looking
statements include, but are not limited to, statements that relate to: the role of our technology and innovations in the semiconductor industry and the world; our integration of ESG into our operations, workplaces,
supply chain, and other activities; our ability to maintain workplace safety; our ESG strategy, approach and goals, including our net zero, energy usage and other climate-rated initiatives and goals, and our ability to show
progress against those goals; our investment in ESG initiatives; the benefits of our ESG efforts to us and to our stakeholders; the governance and oversight of our ESG activities; our engagement with stakeholders; risks
and opportunities related to climate change and our ability to identify, manage and mitigate risks; our ability to operate in an ethical and compliant manner, to provide an ethical working environment for employees, andto effectively manage ethics and compliance risk; our ability to protect data and intellectual property; our political activities; our technology and the success of our research and development efforts, including our ability
to deliver products with increased value, lower environmental impact, enhanced safety or extended product life; the performance, quality and capabilities of our products; our research and development investments
and activities and their impacts; our collaborations; the integration of environmental, climate and energy considerations into our manufacturing, R&D and facilities operations; our engagement with suppliers andcustomers on sustainability initiatives; our inclusion, diversity and equity initiatives; and our ability to promote resilience, ethics, human rights and responsibility in our supply chain. Such statements are based on current
expectations and are subject to risks, uncertainties, and changes in condition, significance, value and effect. Some factors that may affect these forward-looking statements include: supply chain disruptions have limited
and are expected to continue to limit our ability to meet demand for our products; supply chain cost increases and other inflationary pressures have impacted and are expected to continue to impact our profitability;
trade regulations, export controls, trade disputes and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, thesemiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; the severity, magnitude and duration of the COVID–19
pandemic (and the related governmental, public health, business and community responses to it), and their impacts on our business, results of operations and financial condition, are evolving and are highly uncertain
and unpredictable; and widespread outbreaks of illness may impact our operations and revenue in affected areas; as well as the other risks and uncertainties discussed under the headings “Risk Factors” and “Cautionary
Statement Regarding Forward-Looking Statements” within Item 1A and at the beginning of Part I, respectively, of our fiscal year 2021 Annual Report on Form 10-K; and other documents we file from time to time with the
Securities and Exchange Commission, such as our quarterly reports on Form 10-Q and current reports on Form 8-K. Such risks, uncertainties and changes in condition, significance, value and effect could cause our actual
results to differ materially from those expressed in this Report and in ways that are not readily foreseeable. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as ofthe date of this Report and are based on information currently and reasonably known to us. We do not undertake any obligation to update any forward-looking statements, or to release the results of any revisions to theseforward-looking statements, to reflect the impact of anticipated or unanticipated events or circumstances that occur after the date of this Report.

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2021 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCTSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

References
Annual Reports
Code of Ethics
Community Relations
EEO-1 Report
Environmental Social Governance
Ethics Helpline
Global Standards of Business Conduct
Lam Research
Lam Research Global EHS Sustainability Commitment Policy
Products
Supplier Code of Conduct
Supply Chain Policies

Contact information
If you have questions regarding this report or Lam’s ESG activities, please contact:
ESG@lamresearch.com.

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