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Lam Research (LRCX) Proceeds Well Toward Zero-Carbon Goals

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Lam Research Corporation (LRCX - Free Report) seems to be progressing well on its environmental sustainability path, which is evident from its recent accomplishments.

The company, which is committed to reaching its goal of carbon net-zero emissions by 2050 and operating business on 100% renewable energy by 2030, has introduced a foundational strategy to boost sustainability throughout the supply chain.

LRCX has come up with various energy-efficient etch products, which are capable of reducing tool usage of helium by up to 80%. The products are designed to boost generator efficiency by up to 15% in NAND and foundry logic development.

In addition, the company significantly decreased its Scope 1 and Scope 2 greenhouse gas emissions, saved 6.3 million gallons of water in water-stressed regions and diverted 99% of hazardous waste from landfills in 2021.

Lam Research’s increasing use of renewable energy remains a major positive. Last year, the company’s use of renewable energy accounted for 54% of the total energy consumption.

With such achievements and strong carbon neutrality efforts, Lam Research remains well-poised to gain solid momentum, wherein the demand for lowering the hazardous environmental impacts of business operations is increasing fast.

Switching to the use of clean and renewable energy is expected to help the company gain investor optimism in the days ahead. Notably, Lam Research has lost 40.6% on a year-to-date basis.

Renewable Energy in Demand

With the latest move, Lam Research peps up the carbon neutrality game for other tech companies like Amazon (AMZN - Free Report) , KLA Corporation (KLAC - Free Report) and Analog Devices (ADI - Free Report) , which are also taking initiatives to adopt alternative energy sources to lower overall carbon emissions and cut energy bills substantially.

Amazon aims to reach net-zero carbon emissions by 2040. Further, AMZN revealed that it could reach 100% renewable energy by 2025, five years ahead of schedule.

The e-commerce giant is currently the biggest corporate investor in renewable energy. Amazon’s total count of renewable energy projects stands at more than 274 across the globe at present.

Analog Devices pledged to reach carbon neutrality and net-zero emissions by 2030 and 2050, respectively.

ADI intends to shift its overall operations to 100% renewable energy by 2025. It is also gearing up to address emissions across the full value chain by 2030.

Meanwhile, KLA is committed to powering its global operations with 100% renewable energy by 2030. Precisely, KLA is targeting a 46% cumulative reduction in both Scope 1 and Scope 2 emissions by 2030 from its 2019 baseline.

Bottom Line

The latest move of Lam Research is in sync with its strong efforts to bolster its presence in the semiconductor industry by deepening its focus on maximizing the sustainability impacts of its technologies and solutions.

We believe that the company’s strengthening endeavors will continue to shape its trajectory in the intensifying carbon neutrality game. Its robust environmental measures across its operations remain noteworthy.

However, the Zacks Rank #4 (Sell) company is currently suffering from uncertainties associated with the coronavirus pandemic. Supply-chain disruptions and the ongoing conflict between Russia and Ukraine remain major concerns.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.