INTRODUCTION Message from our CEO About Applied Materials Our Sustainability Vision and Strategy Make Possible a Better Future Our Progress at a Glance Corporate Responsibility Materiality Assessment PURPOSE PEOPLE PLANET PROGRESS Sustainability Report 2021 8 To strengthen our focus and improve our performance on potential environmental, social, and governance issues, Applied conducted a corporate responsibility materiality* assessment in 2021 using the Datamaran platform. Corporate Responsibility Materiality Assessment This automated solution helped us comprehensively review a wide range of environmental, social and governance (ESG) topics to identify those ESG issues most important to our stakeholders and where Applied may effect the most significant progress to Make Possible a Better Future. To ensure the most comprehensive identification of relevant issues, the assessment analyzed impacts using a double-materiality lens: assessing ESG factors likely to impact Applied as well as factors that our activities may impact. The assessment includes insights from key stakeholders, including customers, investors, suppliers, policy makers, regulators, media, industries and peers, as well as internal Applied stakeholders. All the issues identified as critical in the matrix are discussed in this report. Though this exercise has affirmed the company’s prioritization of ESG issues that are most strategic and impactful for Applied, such as climate change, energy, supply chain resilience, diversity and inclusion, and human rights, Applied will continue to reassess relative priorities, which may shift in the future. * Materiality in this context and in this report refers to the relative significance of ESG issues in the context of our ESG program, and does not refer to the concept of materiality used in financial reporting, securities, or other applicable law. Importance to Stakeholders Importance to Business H I G HER H I G HER L O WER L O WER Innovation & Technology Community Relations Water & natural capital Employee health & safety Supply chain resilience Public health risk Climate change & GHG emissions Energy management Transition to renewable & alternative energies Management of the Legal & Regulatory Environment Responsible consumption & production Customer privacy & data security Ethical corporate behavior Human rights Workforce management Environmental Social Economic/Governance Waste & hazardous materials management Employee diversity & inclusion INTRODUCTION Message from our CEO About Applied Materials Our Sustainability Vision and Strategy Make Possible a Better Future Our Progress at a Glance Corporate Responsibility Materiality Assessment PURPOSE PEOPLE PLANET PROGRESS