Applied launches supply chain initiative

Author: EIS Release Date: Jul 30, 2020

Applied Materials is to create a more sustainable and just supply chain for semiconductor and display manufacturing.

SuCCESS2030 (Supply Chain Certification for Environmental and Social Sustainability) will optimise material and parts selection, procurement, packaging, warehousing, transportation and recycling.

Under the SuCCESS initiative, Applied’s assessment of supplier performance and capabilities will now require the following shared commitments:

  • Reducing supply chain carbon emissions by moving to intermodal shipping that reduces the industry’s reliance on air freight, with an interim emissions reduction target of 15% by 2024.
  • Transitioning the supply chain to recycled content packaging, with a target of 80% by the end of 2023.
  • 100% elimination of phosphate-based pre-treatment of metal surfaces by 2024.
  • Development of a diversity and inclusion strategy that captures key metrics and meaningful actions to increase the percentage of spend with women- and minority-owned businesses and increase the representation of women and other underrepresented groups with demonstrated improvement by 2024. Work with our trade associations to significantly grow the pipeline of diverse talent available to the industry by 2030.
  • Compliance with the Responsible Business Alliance Code of Conduct 6.0 and Applied Materials’ Standards of Business Conduct and Human Rights Policy.

The SuCCESS initiative strengthens Applied’s ESG supply chain strategy, which includes supporting ethical labor practices, responsible minerals sourcing and other programs in adherence to industry-wide doctrines including the RBA (Responsible Business Alliance) Code of Conduct, SEMI guidelines and Applied’s Standards of Business Conduct.

The initiative will be managed through the new Applied Materials SuCCESS Office which will oversee metrics and conduct compliance audits, training and coordination with participating companies. Applied is also adding a new Sustainability category to its annual Supplier Excellence Awards program beginning in 2021.

Joining Applied in supporting the SuCCESS initiative are key suppliers from around the world including: Advanced Energy, Benchmark Electronics, Inc., Foxsemicon Integrated Technology Inc., NGK INSULATORS, LTD., Ultra Clean Holdings, Inc. and VAT.