Sustainability Report 2021 80 Supplier Diversity To broaden the impact of our inclusion and diversity commitment, Applied Materials works to build diversity in our supply chain, both through onboarding women- and minority-owned suppliers and through encouraging equitable hiring practices across our supply base. Our supplier diversity program is one of the main pillars of our SuCCESS2030 initiative, and in 2021 we met our goal of increasing our diverse spend by at least 2% year on year, through both existing and newly onboarded diverse suppliers. For 2022, our goal is for 2.5% of our total global spend to reside with certified diverse suppliers. In addition, we are partnering with applicable existing suppliers to pursue their diversity certifications through the Women’s Business Enterprise National Council (WBENC) and National Minority Supplier Diversity Council (NMSDC). Beyond expanding our diverse supplier base, we are also working to integrate equity and inclusion across our procurement operations, adding resiliency to our supply chain. In June 2021, we hired a dedicated supplier diversity program manager and began hosting webinars to help our suppliers boost their own supplier diversity efforts. To measure our progress in alignment with other supplier diversity programs, we employ the RGMA Five Levels of Supplier Diversity framework. Near-term objectives include: > Launching trainings for senior executives, procurement professionals, and commodity business managers > Evaluating opportunities to increase diverse spend within our Tier 1 and Tier 2 supplier base Over the long term, we strive to build a true partnership with our suppliers to drive diversity throughout our supply chain and set a positive example for our industry, all while better meeting our business needs. Defining Diversity Applied Materials’ diverse suppliers must be certified by a third-party auditor as being at least 51% diverse owned, controlled, and operated by U.S. minorities (African- American/Black, Hispanic/Latin-American, Native American, Asian-Pacific American, Asian-Indian American), women, minority women, LGBTQ, persons with disabilities, veterans, or service-disabled veterans. Applied Materials also tracks additional diverse suppliers who could potentially be registered as diverse if they proceed with certification. As a founding member of SEMI’s Manufacturing Ownership Diversity (MOD) working group, Applied Materials is working to provide best practices for supplier diversity in the semiconductor industry. Sustainability Report 2021 80 INTRODUCTION PURPOSE PEOPLE PLANET PROGRESS Design for Sustainability Promoting the Circular Economy Product Safety Supply Chain Responsibility