Carbon Net Zero: One Year On In September 2020, Arm committed to achieving net zero carbon by 2030. This report tracks progress one year in to that commitment. Achieving Net Zero Carbon by 2030 Year 1 Progress Report Our Carbon Commitment Our Net Zero Carbon Commitment In September 2020, Arm commited to achieving net zero carbon by 2030 – 20 years ahead of the 2050 target outlined in the United Nations' Paris Climate Agreement1. To achieve this, we committed to taking a science-based approach to cut absolute emissions from our business operations by at least 42%. For unabated emissions, we will invest in accredited carbon sequestration projects while exploring ways to further reduce our emissions, even as we grow. Net Zero Carbon: Year One Progress Overview Our approach encompasses: taking a science-based approach to cut absolute emissions by at least 42% empowering our employees and supply chain to make low-carbon, sustainable choices only using carbon sequestration offsets to balance any residual emissions promoting innovation in tech-based carbon sequestration solutions At the end of year one, we have achieved an 11% reduction against our 42% ten-year target. This was three times the expected progress. While COVID-19 clearly had a significant impact on our data, this extraordinary year also allowed us to accelerate new policies and processes that will continue to reduce our emissions in a post-COVID world. 1 The Paris Agreement aims to limit global warming to <1.5°C above pre-industrial levels. Year One Progress Overview: Target vs Actual Emissions Reduction Our Carbon Footprint Year One Progress How We Measure Our Carbon Footprint Arm measures its carbon footprint according to the Green House Gas (GHG) Protocol. We measure and report on all material categories of Scope 1, 2 and 3 emissions. Five of the 15 Scope 3 categories in the GHG Protocol are material to Arm. We continue to update our emissions data annually and report it publicly. Scope tCO2e* Notes Scope 1: natural gas 47 Market-based Scope 2: electricity 1,821 Market-based Scope 3: supply chain 372,656 FY19 data used; FY20 data available Spring 2022 Scope 3: energy transmission grid losses 1,289 Scope 3: waste 8,472 Scope 3: business travel 101 Scope 3: homeworking 5,454 Replaces commuting data due to COVID-19 TOTAL 389,840 * Tonnes of carbon dioxide equivalent Carbon Reduction by Scope Overall footprint. At the end of year 1, Arm’s total emissions were significantly reduced when compared to the baseline Scope 1: GHG emissions that a company makes directly. For Arm, this means gas boilers in a small number of offices and fuel used by leased vehicles Scope 2: Emissions from electricity, steam, heat and cooling. For Arm, this means emissions from electricity used in our offices and data centers Scope 3: Emissions in the value chain. Five categories are material to Arm, with procurement of goods and services the largest contributor Carbon Reduction Targets And How We're Working Towards Them Target: Source 100% renewable electricity by 2023 Progress: Sourced 88% renewable energy by end FY2020 Progress: Joined RE100, formally committing to sourcing 100% renewable electricity 2030 target: Reduce absolute emissions from business travel by 7% Progress: Introduced carbon travel budgets to help business groups manage travel-related emissions Progress: Revised our travel policy to place more emphasis on virtual options 2030 target: Increase energy efficiency by 20% Progress: Installed smart meters in three of our four largest offices Progress: Identified ways to collate our metering data in a single carbon-reporting tool Progress: Trialed a predictive, dynamic building management system Progress: Decreased emissions of our engineering workloads by applying machine learning and data science 2030 target: Reduce carbon emissions of travel to work Progress: Measured our global commute emissions for the first time NEXT STEPS: Setting a baseline and launching support for lower-carbon commuting 2030 target: Reduce carbon in our supply chain Progress: Measured our supply-chain carbon emissions for the first time and set a baseline Progress: Joined CDP Supply Chain and collected supplier disclosed carbon data for the first time Progress: Set a reduction target for carbon in our supply chain Progress: Reviewed and updated our procurement processes to better account for carbon 2030 target: Support our people to make low-carbon choices Progress: Launched an app that helps our people make low-carbon choices The emissions-tracking app helps Arm's people reduce their carbon footprints Progress: Updated our Environmental Policy to provide more detailed guidance Progress: Developed an on-demand sustainability training course, outlining key issues and Arm’s response Year 2: Our Goals Key Focus Areas for the Next 12 Months Our Goals for Year 2 Goal: Increase our use of renewable electricity to >95% Goal: Increase use of suppliers committed to reducing the environmental impact of travel Goal: Support our people to safely reduce our commute footprint Goal: Work with suppliers to deliver our supply chain carbon-reduction commitments
