Sustainability Report 2021 55 Sustainability Report 2021 55 Climate Risks Applied Materials monitors current and emerging climate-related risks on an annual basis. Responsibility for identifying company- wide and site-specific risks rests with a core team of global emergency response, crisis management, and business continuity personnel, as well as local facilities teams and Environmental Health and Safety (EHS) and Sustainability teams. Our risk identification, mitigation and management plans help ensure our ability to recover quickly from climate-related events and effectively support our customers’ and suppliers’ operations. For the past two years, we have engaged a third party to conduct a Climate Risk Assessment to identify key physical and transition risks and opportunities in line with TCFD recommendations. In 2020 we completed Phase 1, which assessed Applied Materials’ physical risks utilizing three different Representative Concentration Pathways (RCPs) representing low-, moderate-, and high-risk climate change scenarios for 2019 (baseline), 2030, and 2050. The assessment considered Applied’s risk exposure across our global operations by identifying our highest-risk assets and operations based on various chronic and acute geographical climate hazard indicators. Phase 2 of the Climate Risk Assessment concluded in March 2022, providing insights on Applied’s projected transition risks associated with the shift to a low- carbon economy between 2025 and 2050. Benchmarked against our industry peers, the assessment gauges relative risk levels across four key areas in which climate risk mitigation/adaptation strategies may shift asset values and raise business and compliance costs: policy and legal, market, reputation and technology. See the TCFD Index in our Report Annex for assessment results. INTRODUCTION PURPOSE PEOPLE PLANET Climate and Energy Environmental Health and Safety PROGRESS Climate and Energy Although our overall energy use rose by approximately 7% in 2021, driven by both the addition of new facilities and increased production at our existing sites, we still managed to reduce our overall Scope 1 and 2 emissions footprint by 28%. Given the strong and increasing demand for our products, we anticipate continued robust growth over the coming decade and are taking steps to limit the environmental impacts of that growth.