Working towards net zero emissions
Doing our part to address climate change is a high priority for Marvell. We understand how serious a threat it is to our environment, society, and economy, and that we have a corporate responsibility to do everything possible to mitigate its harmful impact.
That’s why we are committed to actively engaging with our investors, customers, suppliers, and other stakeholders to reduce our carbon emissions in accordance with climate science and to ensure our business is resilient in the face of a changing climate.
Note about the data: We are in the process of improving our baseline inventory as part of our Science-based Target Setting workstream.
For more details on our emissions and energy data and management, please see our CDP reports:
Marvell is working to decrease our Scopes 1 and 2 emissions through various initiatives, including:
Given Marvell is a fabless semiconductor company, we must work with our suppliers to reduce our Scope 3 emissions. As a member of the Responsible Business Alliance (RBA), Marvell is engaging with its suppliers on a wide range of ESG issues, including climate and energy. In agreeing to Marvell’s Supplier Code of Conduct, suppliers are required to comply with the RBA Code of Conduct, which states: “Participants are to establish a corporate-wide greenhouse gas reduction goal. Energy consumption and all relevant Scopes 1 and 2 greenhouse gas emissions are to be tracked, documented, and publicly reported against the greenhouse gas reduction goal. Participants are to look for methods to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions.”
We continuously seek to strengthen supplier transparency and engagement on climate change and will be working to improve our Scope 3 supplier data collection.
Learn more about our work to reduce Product Power Consumption.
We have integrated climate change into our business decision making and outline high-level responses to the TCFD framework below. We will be working to refine our TCFD disclosures each year, as we conduct deeper analysis of climate change’s potential impacts to the business.
Climate-related risks and opportunities have impacted facilities strategy for operations, and impacted the strategy in the short, medium, and long-term.
The Marvell Santa Clara Campus is adjacent to San Tomas Aquinas Creek to the east, and the Calabazas Creek to the west. It is classified as “Zone X” by the Santa Clara Valley Water District, and FEMA. “Zone X” is defined as: Areas of 500-year flood; areas of 100-year flood with average depths of less than 1 foot or with drainage areas less than 1 square mile; and areas protected by levees from 100-year floods. As a substantial strategic decision made, Marvell has developed an emergency response plan for Marvell Park in the event that a flood were to occur. This Flood Emergency Response Plan is intended to reduce any flood-related damages and down time by planning in advance.
As part of Marvell’s business strategy with our supply chain, the company mitigates risks through continual assessment and management of value chain partners to ensure business continuity, with a focus on limiting disruptions in operations. This allows Marvell flexibility in managing capacity as volume production increases or in cases when a supplier is impacted by disasters due to climate change or other emergencies.
With our portfolio of data infrastructure semiconductor technology, we recognize that our business industry has the potential to contribute to a low-carbon economy. As we work towards energy efficiency and reduced emissions, our R&D investments may be influenced by incentivizing the development of energy efficient projects and products.
Marvell assesses climate and water-related risks as part of the ERM process by identifying a risk’s potential impact. The scale of impact severity is defined as ”low risk/opportunity, but not substantive” which ranges < $0-$30 million as an impact, “medium risk/opportunity, but not substantive” which ranges impacts that are less than $30 to $100 million, and “high risk/opportunity, substantive” which ranges from any risk/opportunity impact of greater than $100 million. As such, Marvell defines a substantive financial impact from any risk or opportunity that would impact the company by dollar amounts that are above $100 million.
Marvell’s Executive Leadership Team (ELT) identifies key risks in each of the categories listed below and determines the absolute impact and likelihood:
The risks are classified into a risk matrix and the ELT considers the risk tolerance relative to industry peers as well as areas of focus. In developing and executing mitigation plans for each of these significant risks and areas of focus, the team will also evaluate publicly disclosed risks (such as the 10-K) and conduct discussions with relevant stakeholders. Marvell updates the assessment and discusses with the board of directors annually.
Risks are managed through Marvell’s internal processes such as the Business Continuity Process (BCP). This analysis is performed as part of our day-to-day business processes. The COO oversees the execution of the Business Continuity Process, including analysis of current and potential disasters. If a disaster were to occur, he would report the key climate change incidents, mitigation, and actions taken to the CEO as necessary. Information regarding a disaster would be reported to Security by employees. Security will then notify the Crises Management Team of the disaster as part of the Business Continuity Process. The Business Continuity team will then decide if the information regarding a disaster reported meets established criteria for declaring a company disaster. In the event of a company disaster the COO will make decisions for a resolution based on the assessment and options presented by the Crises Management team.