Western Digital : FY2023 Sustainability Report Executive Summary

Western Digital FY2023

Sustainability Report Fact Sheet

The Western Digital FY2023 Sustainability Report details the significant progress made in all areas of sustainability, including energy efficiency, emissions reduction, waste elimination, supply chain resiliency, and corporate diversity, equity, and inclusion.

Western Digital Long-Term Goals

• Running global operations on 100% renewable energy by 2030.
• Achieving net-zero emissions in our operations (Scope 1 and 2 emissions) by 2032.
• Reducing water withdrawals by 20% by 2030.
• Diverting more than 95% of our operational waste from landfills by 2030.
• Reducing Scope 1 and 2 emissions by 42% and Scope 3 use phase emissions/TB by 50% by 2030, all from an FY2020 base year. The Science Based Targets initiative (SBTi) approved these carbon reduction goals in 2021.
• In support of the First Movers Coalition, we have committed to using at least 10% net-zero fuels for ocean shipping by 2030.

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Energy and Emissions

As a global enterprise with operations in several particularly vulnerable regions of the world, Western Digital is especially sensitive to the effects of climate change. We are committed to doing our part to decrease greenhouse gas emissions, reduce energy consumption, lower our climate impacts, and improve climate resiliency through increased operational efficiencies, adoption of on-site solar, and direct procurement of renewable energy. Our efforts include:

• Secured renewable energy to support 100% of demand in five out of 12 factories: wafer factories
  (Great Oaks and Fremont sites in the US) and head and media factories (Philippines HGA, Sarawak Substrate in Malaysia, Shenzhen Media in China).
• As of the end of FY2023, we reduced our Scope 1 and 2 emissions by more than 14% from our 2020 level, putting us nearly a third of the way to our
  2030 commitment in just two years.
• Western Digital is working to implement on-site solar at multiple facilities worldwide. For example, numerous sites in Thailand started construction of on-site solar in FY2022. Power generation commenced in FY2023, meeting 1% of facilities' energy demand.
• In FY2022, we set an assertive target for energy conservation measures corresponding to >2.0% reduction of energy use over FY2021. We met this annual target and completed planned energy conservation measures corresponding to a 3.0% reduction.

Waste Reduction

Our global team collaborates and shares knowledge to optimize energy, water, and waste management. In FY2023, we launched a recycling program with stakeholders to analyze recycled materials. Our waste- reduction achievements include:

Select HDD products received third-party verification of recycled content by weight in recent HDD products:

• The 28TB Ultrastar® DC HC680 SMR HDD and 24TB Ultrastar® DC HC580 CMR HDD have 40% recycled content.
• The 18TB Ultrastar® DC HC550 CMR HDD and 20TB Ultrastar® DC HC650 SMR HDD have 41% recycled content.

Enterprise HDD product packaging received third-party verification of 45-64% recycled content.

Paper:

• Redesigned flash product packaging to reduce paper usage by approx. 35% weight
• HDD: 95% recycled paper materials for carton boxes

Plastic pallets for enterprise products:

• HDD: 30% recycled polypropylene

Plastic trays for bulk flash products:

• Redesigned plastic trays to use approx. 50% less PET plastic by weight
• Increasing use of recycled PET to 25%

Supply Chain Resiliency

Western Digital has an extensive in-house manufacturing network and hundreds of global production parts suppliers and contract manufacturers. Our supply chain approach aims to increase resiliency and accountability, which will lead to better working conditions and a more responsible and resilient supply chain. Our accomplishments include:

• Actively participated in the Responsible Labor Initiative (RLI) since its founding in 2017. Through the RLI, we discuss best practices, collaborate with peers to develop cross-industry standards for healthy and sustainable working conditions, and utilize shared resources to monitor our practices and those of our suppliers.
• Encouraged suppliers to set science-based targets and joined over 740 financial institutions and multinational firms with $136 trillion in assets and spending power in supporting the CDP Science- Based Targets Campaign, for which we received a 96% response rate.

Diversity and Inclusion

Western Digital holds the belief that our employees are not just bits and drives, but are our most valuable resource. The diverse talents and experiences of our approximately 53,000 employees in 38 countries worldwide give us a competitive edge. Western Digital acknowledges that we are at our best when we leverage the diversity of our workforce. Our recent statistics:

• In FY2023 women represent 26% of management positions and 23% of technical staff, above industry average.
• 62% of USA-based management positions were represented by members of Asian, Black/African American, Hispanic/Latino, or other racially or ethnically diverse communities, a 1.4% increase from 2022.
• Recognized for the fourth consecutive year by the Women's Choice Award as a Best Company for Millennials.

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