Climate change represents an unprecedented challenge to our planet, society and economy. Changes in climate patterns, resulting in a wide range of increasingly pronounced extreme weather events, from more frequent hurricanes and droughts, to heatwaves, and wildfires, can potentially impact our ability to do business in the future.
Recognizing that climate change requires urgent action, we have committed to reducing our greenhouse gas (GHG) emissions both in our direct operations as well as in our value chain. As most of our carbon impacts are upstream and downstream of our direct operations, we actively engage with suppliers, customers and business partners to reduce GHG emissions in our supply chain and to minimize product power requirements. This helps us ensure we are building resilience in the face of changing climate impacts.
We have taken actions to enhance our climate strategy by beginning the process to set a Science Based Target (SBT) and putting ourselves on a path to net zero carbon emissions. Our SBT will be aligned with a 1.5°C climate scenario, supporting the goals of the Paris Agreement.
We also continue to gather data that will help us better understand the exposure of our business to climate-related impacts, in alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). To inform our business strategy and ensure our future resilience, we initiated the process of conducting a TCFD-aligned climate scenario analysis to examine potential impacts of various physical and transition climate-related risks on our business under RCP 4.5 and RCP 8.5 emissions scenarios for 2030 and 2050 timeframes. The results of these analyses will allow us to test the agility and resilience of our management processes in the face of climate change and will be integrated into our enterprise risk management program.
Our products play an essential role in powering data infrastructure spanning cloud and enterprise data centers, 5G carrier infrastructure, automotive vehicles, and industrial and enterprise networking. When we design our products, we focus on innovative features that deliver new capabilities while also improving performance, capacity and security to ultimately improve energy efficiency during product use. These innovations help make the world’s data infrastructure more efficient and, by extension, reduce our collective impact on climate change. We are committed to being at the forefront of our industry in this area, enabled by the innovation of our R&D teams.
Our industry has long relied on certain materials – including heavy metals, such as lead, cobalt, cadmium and hexavalent chromium – that are prized for their electrical properties. However, growing awareness about the impacts of these materials on human health and the environment has raised concerns with many of our stakeholders, including regulators.
We recognize the potential risks posed by these substances and have been proactive in addressing stakeholder concerns. For example, with the advent of the EU Directive on the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) in 2006, Marvell began designing lead out of our products to align with the directive (except for applicable exemptions).
We are actively turning our attention to other materials that are a concern for Marvell and our customers. We made sure that our manufacturers have been reducing the use of cobalt in the past year in advance of forthcoming regulation. We have started to use halogen-free materials in our packaged integrated circuits for new product development. When possible, we work to substitute alternative materials that meet the same performance metrics while posing fewer risks.
Water use and waste generation are critical issues in our industry that result from semiconductor fabrication and production. Although Marvell’s most significant environmental impacts occur in our supply chain, we recognize that we have an important opportunity to contribute by managing the impacts of our own facilities.
Currently, we have initiatives in place to manage water and waste in the facilities where we have operational control. Annually, we calculate our operational water footprint and conduct a water risk assessment to examine the exposure of our facilities to water stress. Going forward, we will be working to gather more data on supplier water management practices and identify areas for improvement beyond our four walls. To reduce our waste impacts, we are working to centralize our waste management system and find more ways to divert waste away from landfills towards recycling and composting. Among Marvell’s global locations, we mainly focus on facilities where Marvell is the owner or single tenant and can make operational decisions that have a positive impact on the environment.