January 20, 2010
Appled Materials, Santa Clara

Speaker: Bruce Klafter; Applied Material’s Sr. Director—Head Corporate Responsibility & Sustainability.

Bruce Klafter spoke about Applied Material’s pathway to sustainability. Applied Materials made over 5billion dollars in 2009. With 12,600 employees and operating in 15 countries worldwide. Klafter’s comments on how the new semiconductor business that is run by IPods rather than business. Applied Materials is a global company with its newest location in Singapore.
Products & Services of Applied Materials:
• Semiconductor
• Services and Software
• Solar
• Display
• Packaging glass & flexible Software

Applied Materials is the largest supplier to the Solar Industry. The total AVAILABLE energy market is very big!
Applied Materials Vision: “We apply nonmanufacturing technology to improve the way people live.” Most people in the world do not have a clean source of energy.
From Risk to Opportunity: A sustainability strategy provides both risk management and new business opportunities.
Key Elements in Sustainable Operations:
• Data gathering
• Analysis
• Benchmarking
• Planning
• Visions & Principles
• Goal setting
• Implementations customer service

*EMS *Internal Operation *Product Development *Supply Chain *Customer service
Internal / External / Stakeholder Engagement

Getting Started:
1. Who endorses a programs
2. Start talking together about ideas
3. Obtain commitments
4. Start expanding top-down and bottom up management

*Remember start small
*Using inventory to make benchmarking reports
*It is important to use both top-down and bottom-up management styles for sustaining good business and management.

For benchmarking:
Look at direct emissions, purchased electricity (largest), and indirect emissions (ex. Business travel)

*Most competitors don’t publish what their carbon footprint is.

*Companies are not required to release information but we are trying to tell them why it is important. There is more benefit than detriment. “The transparency of what we are trying to do…” Klafter explains that sustainability may be overlooked now but it will be the future way of doing business.
*Having energy reductions goals for both a product goal and an operational goal is necessary to start the road toward sustainability.
-Use a “Utility Consumption Report”
*More systems to be more competitive with in the sustainable business industry
*The cost is a big detriment products need to be same price to the consumer. The alternative ‘green’ product has to be the same cost as the nongreen product in order to appeal to the consumer.
**Compiling Sustainability Projects
1. Sort project
2. Rebate -> money back determines which projects to pursue.
“Quick wins” -> Fast little successful projects to get your business going and published name. But also investing in Solar Power shows our commitment.
1. Core implementation team titled ‘Office of Sustainability’ (gives workers more recognition for their job.)
2. Need and want a steering council to give more guidance for bigger decisions. (ensures that money is being spent on projects wisely and what project is being done when.)
SCHOOLING is very important for improving education. Applied Materials has a program for teachers during the summer to help spread knowledge about sustainable practices. **Applied Materials designed a card game for schools to play and teach kids about sustainability called “Bright Future Card Game”.

• Energy efficient
• Design for environment
• Pollution prevention
• Employee & Public outreach (for employee’s this is important & inexpensive)
*Interesting- European employees are harder to get on board because they all ready feel like they are doing all they can do for sustainability.

VALUES(sustainability) & PRIORITY(time available & cost…)

Setting Aggressive Goals:
2 types of goals set: Corporate goal & Production goal
-> Applied Materials Goal is to cut CO2 equivalent by 20% by 2012. And to reduce energy and resource consumption in overall production by 2012 also.

*Supply chain impacts: How things are made=contract manufactures.
*Developing projects ideas and plans want to add value to company but be realistic.
***News Week Green Rankings evaluated Applied Materials at #9. (major solar installation in parking lot was good investment to show public commitment to sustainability)
*Having the energy monitor on web helps employees stay aware of energy level in buildings
*Future Challenges:
• Culture values and Priorities
• Continue engaging key departments
• Develop strategy
• New targets and goals 


Support and share experiences to form a group for and by companies on the Sustainable Business journey. Designed to offer settings where successful sustainable business management practices and methods, as well as barriers to implementation, are reviewed and discussed.

Distill case scenarios as benchmarks to create a network of resources for each member to add momentum to innovation and continuous improvement for both new and early adopters of sustainable business practices.

Facilitate learning , teaching, sharing , supporting, networking about sustainability among those company executives interested/involved in Sustainable Business. Enable companies to gain insight/information to facilitate the integration of sustainable business policies and practices in their own organizations.

Companies are preferably SBI member organizations; others can participate for a fee (TBD) for each session. Attending executives from companies embarked on the sustainable business journey. Should have a clear focused goal to attend, contribute speakers/ space, share experiences in the spirit of co-opetation. Illustrate with case studies what works, what did not.

Every 2 months : 2 hour lunches, 1 hour for speaking; 2nd hour for breakout sessions. Each session will have a theme.


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