Applied Materials* to Cut Carbon Emissions
Contact Information:
Andrea Ranger, Shareholder Advocate, aranger@greencentury.com, 781-349-2813
Pam Podger, Communications Director, ppodger@greencentury.com, 802-299-9495
Boston, January 4, 2023 – After filing a shareholder proposal, Green Century° reached an agreement with Applied Materials, Inc. (Applied) to map out its strategy to cut carbon emissions by 2040.
Headquartered in Silicon Valley, Applied employs 39,000 people, and is one of the world’s largest semiconductor and flat panel display fabrication equipment suppliers. It supplies equipment, services, and software to manufacture semiconductor chips, solar PV cells, and displays for computers, smartphones, and flatscreen TVs. According to its website, Applied’s products and services are used to produce “virtually every new chip and advanced display in the world.”
Applied has developed a roadmap detailing how it plans to significantly cut greenhouse gas emissions by 2040. However, Green Century asked Applied to enhance its disclosures by creating a climate transition plan in order to give investors better insight into a company approach to meeting its climate goals. Green Century and Applied agreed that the company would publish additional information on its short-term strategies, anticipated obstacles, and metrics to measure progress.
Applied Materials Agrees to Outline Strategy
Applied has taken significant steps to lessen its impact on the planet. By 2030, the company aims to reduce its operational emissions by 50% and a portion of emissions from use of its sophisticated manufacturing equipment. In addition, it plans to install the largest rooftop solar array in the state of Texas on its Austin-based logistics service center and to reach 100% renewable electricity globally by 2030.
“Applied is tackling its climate impact on many fronts, and we’re really pleased that it’s so proactive,” said Green Century Funds President Leslie Samuelrich. “In the future, we hope Applied is transparent about its plan to achieve its ambitious goals. In other words, tell investors how you will position your company and products for a low-carbon world.”
Chip manufacturers including Applied customers Intel* and the behemoth manufacturer, Taiwan Semiconductor Manufacturing Company, have plans to significantly expand their operations. Both are seeking ways to meet their greenhouse gas reduction targets and are looking to suppliers for ways to cut their energy consumption. Equipment suppliers play an increasingly important role in helping their clients create chips and displays without incurring enormous energy bills. Green Century’s agreement with Applied stipulates that the company will provide increased transparency into how it plans to help customers source additional clean energy and work with suppliers to find similar solutions.
“I was really pleased that Applied could see that, while good, its Net-Zero by 2040 plan could be even more helpful to investors if it included elements of a climate transition plan, that is, more insight into its thinking about short- and medium-term actions in its own operations and with customers and suppliers,” commented Green Century Shareholder Advocate Andrea Ranger. “Applied responded well to Green Century’s concerns, and I think our agreement cements its leadership role in the manufacturing space.”
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About Green Century Funds
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. Green Century hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of September 30, 2023, Applied Materials, Inc. comprised 0.00%, 0.61%, and 0.00% and Intel Corporate comprised 0.00%, 0.78%, and 0.00% of Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund, respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
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The Green Century Funds are distributed by UMB Distribution Services, LLC. 235 W Galena Street, Milwaukee, WI 53212. 1/2024
