Semiconductor firm Applied Materials puts supply chain at center of new commitments

July 28, 2020 by  
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Semiconductor firm Applied Materials puts supply chain at center of new commitments Heather Clancy Tue, 07/28/2020 – 02:00 The sustainability ambitions of the world’s largest cloud software companies — Amazon, Google, Microsoft and Salesforce — have been well-documented. The broad semiconductor industry’s position to date, however, has been less transparent and less ambitious, with the highly visible exceptions of AMD, IBM and Intel.  That stance is shifting, as the sector contemplates the explosive growth projections for connected computing devices, including sensors, smartphones, tablet computers and personal computers, not to mention the massive server hardware needed to process artificial intelligence algorithms.  By 2030, there could be a half-trillion such devices “at the edge” of the digital networks driving business innovation around the planet, Applied Material President and CEO Gary Dickerson noted last week in a keynote address during a virtual edition of the industry’s annual conference, SEMICon West .  The association behind the gathering, SEMI , projects semiconductor revenue could reach $1 trillion by that same timeframe, more than double last year’s sales of about $470 billion. It previously took 20 years for the industry to double in size.  The big question for the sector at large and Applied Materials specifically, Dickerson said, is how to support accelerating growth without dramatically increasing the industrywide carbon footprint associated with creating all those components — currently estimated at 50 million metric tons of CO2 annually across more than 1,000 fabrication facilities worldwide (a.k.a. “fabs”).  We are going to hold our supply chain to the same standards that we hold ourselves in the areas of environmental impact, labor standards, and diversity and inclusion. “I’ve been amazed at the increasing amount of power required to manufacture these ever-smaller chips, and I would join with others in encouraging all of the equipment manufacturers to work together to reduce carbon emissions in the manufacturing of these advanced semiconductors and finally continue decarbonizing the power supply on which the data centers operate,” former Vice President Al Gore  told me last week , when I asked him how the semiconductor industry could step up. Applied, which specializes in materials engineering, sells equipment and services used in the production of virtually every new chip and advanced display in the world. It generated more than $14.6 billion in annual revenue in 2019, and Dickerson estimated its Scope 1 and Scope 2 emissions — mainly from the power used to run its labs and factories — was the equivalent of 145,000 metric tons of CO2 in 2019. (Disclosure: Al Gore’s investment firm, Generation Investment Management, holds a position in the company. Applied was responsible for my invitation to lead an interview with Gore last week during the same conference.) “The first thing we need to do is decouple our growth from our environmental impact,” Dickerson noted. “If we double or triple the size of our company, it would be irresponsible to double or triple our carbon footprint!” That conviction resulted in the company’s decision to adopt a series of new policies designed to shore up its environmental, social and governance (ESG) story, including a commitment to use 100 percent renewable energy worldwide by 2030 (by 2022 for its U.S. operations) and to cut its Scope 1 and Scope 2 emissions by 50 percent over the next decade. Moreover, Applied has created a sweeping new initiative intended to bring other companies in the semiconductor supply chain along for the ride. “We are going to hold our supply chain to the same standards that we hold ourselves in the areas of environmental impact, labor standards, and diversity and inclusion,” Dickerson said. “We’re introducing a sustainability scorecard into our supply selection process, alongside our traditional metrics for performance, cost and quality.” Making improvements of this magnitude and — at the same time — driving the technology roadmap forward is not easy and requires deep partnerships with customers. The new program, SuCCESS2030 (short for Supply Chain Certification for Environmental and Social Responsibility) will extend to all aspects of Applied’s operations, from procurement to packaging. It will now require these shared commitments from its suppliers, according to the press release about the program: A shift to intermodal shipping to reduce the industry’s reliance on air freight, aiming for an interim emissions reduction of 15 percent by 2024. A transition to recycled content packaging, with a target of 80 percent of such materials within three years. The complete elimination of phosphate-based pretreatments for metal surfaces within four years. The creation of a diversity and inclusion strategy to increase Applied’s spend with minority- and women-owned businesses by the same time frame. (There is no disclosed percentage for this goal.) “The response has been great, and we have six key partner suppliers already signed up to help us kick off this program,” Dickerson said. Those companies are Advanced Energy, Benchmark Electronics, Foxsemicon Integrated Technology, NGK Insulators, Ultra Clean Holding and VAT. Technically, Applied doesn’t yet have an official emissions reduction target in place for its Scope 3 footprint, but the company has joined the Science Based Targets initiative with the intention of doing so within two years, according to Dickerson. To improve its own competitive story with customers, Applied will use risk scenario analysis recommendations from the Task Force on Climate-related Financial Disclosures, and it has adopted a new “ecoUP” policy that includes a “3 by 30” goal for improvements in its own manufacturing systems on a per-wafer basis: a 30 percent reduction in energy consumption, a 30 percent cut in chemical consumption and a 30 percent increase in “throughput density,” the number of wafers that can be produced per square foot of cleanroom space. “Making improvements of this magnitude and, at the same time, driving the technology roadmap forward is not easy and requires deep partnerships with customers,” Dickerson said. Among those actively working with Applied on the new approach include Intel and Micro Technology, which is stepping up its own commitments. The latter intends to dedicate 2 percent of its annual capital expenditures over the next five to seven years — about $1 billion — on environmental and social stewardship.  Pull Quote We are going to hold our supply chain to the same standards that we hold ourselves in the areas of environmental impact, labor standards, and diversity and inclusion. Making improvements of this magnitude and — at the same time — driving the technology roadmap forward is not easy and requires deep partnerships with customers. Topics Information Technology Corporate Strategy Technology Manufacturing Featured in featured block (1 article with image touted on the front page or elsewhere) Off Duration 0 Sponsored Article Off Courtesy of Applied Materials Close Authorship

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Semiconductor firm Applied Materials puts supply chain at center of new commitments

How Cargill’s new science-based water targets go with the flow

July 27, 2020 by  
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How Cargill’s new science-based water targets go with the flow Joel Makower Mon, 07/27/2020 – 02:11 Cargill, the giant food and ag conglomerate, last week announced a new set of 2030 corporate water targets, the latest to do so among firms in its sector. But this was no me-too kind of endeavor. Rather, it put the company at the front of the pack, going well beyond its own operational footprint to engage its entire supply chain, and to do so using a novel science-based approach for water. Specifically, Cargill said that by the end of the decade it would restore about 158 billion gallons of water, reduce about 5,500 tons of water pollutants and boost access to safe drinking water — all in what it refers to as  priority watersheds , regions around the world where the company has a significant operational or supply-chain water footprint.  This isn’t small potatoes. Agriculture represents about 80 percent of freshwater use in the United States and about 70 percent globally. Ag also is a major contributor both to water pollution and climate change; the water sector, which includes the collection and treatment of wastewater, accounts for 4 percent of total global electricity consumption,  according to the International Energy Agency . Few food and ag companies have taken on the full measure of their water footprint the way Cargill seems to have done, and by using a science-based approach. “If there’s a more robust enterprise level ambition for water, I haven’t seen it,” said Jason Morrison, CEO of the Pacific Institute and head of the United Nations  CEO Water Mandate , who advised on the project. “This is a really impressive piece of work that they’ve done and a pretty ambitious commitment they’re making. It’s got a lot to it.” If there’s a more robust enterprise level ambition for water, I haven’t seen it. Cargill has made water commitments in the past, but they covered only the company’s direct operations, a relative drop in the bucket of the water needed to bring to market the $114 billion or so of products and services it sells each year. About a year ago, the company set out on a journey to understand its water risks relative to its supply chain and operations, explained Jill Kolling, the company’s vice president for global sustainability. “Where does water really matter for us in our business?” she explained to me recently. “And where should we really be putting our efforts?” The goal, she said, “was to come out of this and have some aspirational goals to work against and also to make sure we’re working where it matters most. So, having that strong prioritization, backed up by science.” Science-based targets have become de rigueur in setting corporate greenhouse gas commitments. In effect, they ask what level of carbon reductions represents a company’s fair share, given its contribution to the climate problem. It was inevitable that this approach eventually be applied to water. Indeed, for the past two years a group called the Science-Based Targets Network has been looking at how to apply such methodologies to  a range of environmental impacts , including  water . But water is unlike climate gases in several fundamental ways. First, water is inherently local, with droughts in some areas and a surfeit in others. With climate gases, any improvement anywhere in the world helps alleviate the global problem; not so with water. Water is also temporal, with conditions changing throughout the year and from year to year, based on both normal and abnormal climatic shifts. And while the aggregate amount of available water is important, so is its quality. Having millions of gallons of water isn’t helpful if it is toxic, brackish or otherwise unsuited for human use. Rivers of data In the case of Cargill, these and other factors were applied not just to its own operation, but also to its more than 250,000 suppliers, ranging from multinational corporations to single-family farms in developing nations. They provide the raw materials for everything from cocoa and cotton to salmon feed and sweeteners. Cargill already had dipped its toes into water issues. It has invested in such programs as the  Soil and Water Outcomes Fund , which helps farmers adopt soil health and water conservation practices. It also participates in the  Midwest Row Crop Collaborative’s efforts to support and accelerate sustainable agricultural practices in Illinois, Iowa and Nebraska, including on improving water quality across the Upper Mississippi River Basin, which supports nearly 44 percent of U.S. corn, soy and wheat production. Still another Cargill initiative is  BeefUp Sustainability , which focuses in part on restoring grasslands, which perform many ecosystem services including filtering water. To develop its latest commitments, the company turned to World Resources Institute, with which it had previously worked on water issues. The first step was to aggregate the data Cargill needed to prioritize locally relevant decisions. “We’ve got  globally comparable data on water risks that we help companies leverage in order to look at water risks to their supply chain, and now increasingly use that same data to help think through what an effective science-based target could look like,” Sara Walker, WRI’s senior manager, water quality and agriculture, told me. “They’re kind of our science partner,” Kolling said of WRI. “What they bring to the table is datasets, tools and scientists who are able to help do the analysis. It’s also good to have an NGO partner working with you to push you to be more aspirational. They’ve provided tremendous guidance through this.” “There’s quite a lot of good data out there,” explained Truke Smoor, director of water at Cargill. “But if you look at the number of companies who have said they want data for water quality and costs, for both operations and the supply chain, you see there are very few.”  600 billion liters — it’s insanely large. It’s more than the total amount of water that we use in all our operations.   That may be in large part because the available data isn’t always consistent across watersheds and borders. Smoor said that Cargill ended up “combining a global data set with a better data set for the U.S. to meet our needs. And now we have the data we need to help us prioritize.” The commitments Cargill settled on were stretch goals, Smoor said. For example: “Six hundred billion liters — it’s insanely large. It’s more than the total amount of water that we use in all our operations. So, we’re basically offsetting double our total water use in those priority water systems in the regions where it’s needed most.” Down on the farm In some ways, getting the data was the easy part. Working with farmers — from Big Ag behemoths to smallholders in far-flung economies — is another matter. Promoting change can be hard work, although some farmers are beginning to realize the need to adapt new kinds of practices to ensure the long-term viability of local water supplies. “I think farmers are starting to realize that it’s ultimately the consumer who’s starting to care more and more about this,” Kolling said. “Over the coming years, those pressures and those desires from consumers to want to know more about how their food was produced and having greater expectations, we believe it’s going to grow and will continue to trickle back to the farmer. I think some of those more resistant farmers may realize that this is the way things are going.” Most farmers aren’t yet feeling those market impacts, she said, but there are other compelling arguments for their linking arms with Cargill on water. “At the end of the day, farmers are businessmen and women,” Kolling said. Toward that end, her company is helping farmers understand the business case today for improving water management practices, ranging from improving soil health to ensuring community water supplies. “It helps us make the change we want to make for the environment and for social and economic reasons.” And, of course, there’s climate change. Specifically, its relationship to both water quality and quantity, as well as the role of farming in sequestering carbon dioxide, which, in turn, improves soil health. “Water is so critical for nature, for agriculture, for communities,” Smoor said. “And it has that synergies with climate change.”  For example, she said, “Look at soil health practices. They help in carbon sequestration and they help in reducing greenhouse gas emissions. That is tied to fertilizer use, water quality and runoff. So, soil health practices provide water quality benefits. And through increasing soil moisture, we actually make sure that more water can recharge, so you have improved water availability. They really go hand in hand, which is such a powerful thing. Through combining these, you have so many touchpoints, whether it’s through farmers or regulators or the community.” Pooling resources As with every sustainability issue, one company’s leadership action is but a start. It will take collective action to achieve global goals, but also to ensure each company’s efforts aren’t undermined. For example, Cargill’s water conservation efforts in a particular basin may be for naught if other companies, large or small, aren’t similarly engaged there. In April, Cargill  announced that it would contribute $2 million to the next phase of its partnership with WRI. The two entities said they will combine their expertise to accelerate the development and improvement of tools, including a new Water Management Toolkit, to enable companies to set science-based targets for water. The toolkit “will allow us to address shared water challenges and promote sustainable water use within planetary boundaries across the industry,” they said in a statement. Cargill is already making its methodology publicly available. “We’re hoping we can invite others — customers, competitors, whomever — to collaborate with us where their sourcing and focus may intersect with our same watersheds,” Smoor said. But companies seem to be uncertain about when to jump into the pool. “We’re getting a lot of questions from companies like, ‘Should I wait for better data or should I wait for the Science-Based Target Network to tell me what exactly to do?’” WRI’s Walker said. “We’re really trying to encourage companies to act now. I think Cargill is a good example of this.” On the other hand, Smoor said, companies can wait until — some day. “You can continue to analyze everything forever, and especially in water, with all the different aspects. You can get stuck in risk analysis. You can get stuck in needing better data. Our approach is, we’re starting now; we’re going to drive the change. We will validate if we are doing the right thing.” I invite you to  follow me on Twitter , subscribe to my Monday morning newsletter,  GreenBuzz , and listen to  GreenBiz 350 , my weekly podcast, co-hosted with Heather Clancy. Pull Quote If there’s a more robust enterprise level ambition for water, I haven’t seen it. 600 billion liters — it’s insanely large. It’s more than the total amount of water that we use in all our operations. Topics Food & Agriculture Water Efficiency & Conservation Science-based Targets Featured Column Two Steps Forward Featured in featured block (1 article with image touted on the front page or elsewhere) On Duration 0 Sponsored Article Off Shutterstock

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How Cargill’s new science-based water targets go with the flow

VERGE Talk: Disruptive technologies — how GIS is transforming crisis management

June 28, 2018 by  
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The VP of Operations at the Los Angeles Homeland Security Council explains how a data-driven tool they created for the City and County of L.A. changed her community’s ability to respond in emergency situations and redefined its crisis management systems — across the utilities, police, fire and other vital government departments. She tells the stories of accelerated resilience and security across various community groups and shares her lessons and resources for Hawaii and other areas in need.

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Radioactive “Petrified” Forests in Chernobyl’s Exclusion Zone Could Spread Contamination to Safe Areas

March 18, 2014 by  
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It would be logical to think that after the Chernobyl nuclear disaster , forests around the site would slowly rot. But the terrible radiation blast in 1986 has left dead trees and leaf litter unable to decompose. A recently published study conducted by a team of US scientists explains the phenomenon of these “petrified” forests, and explores the consequences of the meltdown on local wildlife. Read the rest of Radioactive “Petrified” Forests in Chernobyl’s Exclusion Zone Could Spread Contamination to Safe Areas Permalink | Add to del.icio.us | digg Post tags: Chernobyl forest fires , Chernobyl forests , Chernobyl nuclear disaster , Chernobyl petrified forests , Chernobyl wildlife , nuclear radiation Chernobyl , radiation blast , scientific study University of South Carolina , University of South Carolina biologists        

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Radioactive “Petrified” Forests in Chernobyl’s Exclusion Zone Could Spread Contamination to Safe Areas

Mieke Meijer’s Clever Suspended Staircase Design Also Doubles as a Storage System

March 18, 2014 by  
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Read the rest of Mieke Meijer’s Clever Suspended Staircase Design Also Doubles as a Storage System Permalink | Add to del.icio.us | digg Post tags: “green furniture” , green home decor , green interiors , Object élevé , space saving stairs , storage-stair , Studio Mieke Meijer , Transforming Furniture        

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Mieke Meijer’s Clever Suspended Staircase Design Also Doubles as a Storage System

Shigeru Ban Wins Bid to Design Mount Fuji World Heritage Center

March 18, 2014 by  
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Shigeru Ban has won a competition to design the new Mount Fuji World Heritage Center in Japan’s Shizuoka Prefecture. Conceived as an inverted pyramid, the $23.5 million building evokes the image of Japan’s most iconic landmark in its reflection in a large water basin. The competition for the 46,000 square foot building was commissioned after Mount Fuji was recognized as a UNESCO World Heritage Site last year. Read the rest of Shigeru Ban Wins Bid to Design Mount Fuji World Heritage Center Permalink | Add to del.icio.us | digg Post tags: fujinomiya , japanese culture , mount fuji , mount fuji world heritage center , mt fuji , shigeru ban , shizuoka prefecture , UNESCO , UNESCO world heritage site , world heritage site        

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Shigeru Ban Wins Bid to Design Mount Fuji World Heritage Center

INTERVIEW: We Interview Reluct’s Founder Joost Van Brug

March 18, 2014 by  
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Joost Van Brug was the man behind Reluct – an excellent design blog that uncovered cutting edge design from 2003-2007. Although Joost is squarely a part of the Dutch design scene and frequently wrote about Dutch designers, his focus was international and his audience reflected this. Unlike many Dutch blogs, Reluct was published in English – and the majority of Joost’s readers were in the US. We sat down in with Joost in 2006 in Amsterdam to chat about Dutch design, design-blogging and sustainability in design. Hit jump to read what he had to say. Read the rest of INTERVIEW: We Interview Reluct’s Founder Joost Van Brug Permalink | Add to del.icio.us | digg Post tags: Demakersvan , design blog , design-blogs , Dutch blogs , dutch design , Dutch design scene , dutch designers , Joost Van Brug , Reluct , Reluct Favorite , Reluct picks , sustainable design        

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EPA Reveals GHG Data of the Nation’s Biggest Polluters

January 11, 2012 by  
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Individuals, communities and businesses can see how much global warming pollution being produced by facilities in their areas.

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EPA Reveals GHG Data of the Nation’s Biggest Polluters

Wolves Can Help Restore Ecosystems

February 2, 2010 by  
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Image credit: Paul Stevenson /Flickr Reintroducing wolves into native habitats, researchers from the National Park Service write in the latest issue of BioScience , can help restore damaged ecosystems. Doing so in national parks and other areas, they say , would foster greater biodiversity and could even encourage tourism. But there is a caveat: The initial populations would have to be small and carefully managed, not self-sustaining…

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Wolves Can Help Restore Ecosystems

Man Hunts Crocodile That Has Eaten Over 200 People

February 2, 2010 by  
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Photo via Primeaval For 20 years, near Lake Tanganyika in Burundi , locals have been terrorized by one of the largest freshwater crocodiles in the world. The 25 foot long crocodile, named Gustave, has an insatiable appetite…

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Man Hunts Crocodile That Has Eaten Over 200 People

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