Carbon Net Zero: Two Years On In September 2020, Arm committed to achieving net zero carbon by 2030. This report tracks progress two years in to that commitment. Achieving Net Zero Carbon by 2030 Year 2 Progress Report Our Carbon Commitment Our Net Zero Carbon CommitmentIn 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 aligning with the science and cutting absolute emissions from all emissions sources (scopes) by at least 42%. For unabated emissions, we will invest in accredited carbon removal offset projects at the point of net zero. We're very pleased to announce that in 2022 we increased the ambition of our net zero target from 42% reduction to 50% reduction by 2030 versus an FY19 baseline. We will be reporting against this target for year three onwards. Net Zero Carbon: Year Two Progress OverviewOur approach encompasses:taking a science-aligned approach to cut absolute emissions by at least 42%empowering our employees and supply chain to make low-carbon, sustainable choicesonly using carbon removal offsets to balance any residual emissionspromoting innovation in tech-based carbon removal solutionsAt the end of year two, we have achieved a 90% reduction against our 42% ten-year target. This was ten times the expected progress.COVID-19 continues to have an impact on our emissions. However, the new policies and processes we put in place during the pandemic to support continued carbon reduction are also proving to be successful as restrictions lift.1 The Paris Agreement aims to limit global warming to <1.5°C above pre-industrial levels. Our Carbon Footprint Year Two 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. Six 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.ScopetCO2e*NotesScope 1: natural gas24Market-based (Location-based 1,093)Scope 2: electricity276Market-based (Location-based 14,565)Scope 3: supply chain37,332Includes 2 Scope 3 supply chain categoriesScope 3: energy transmission grid losses1,111 Scope 3: waste479 Scope 3: business travel347 Scope 3: commuting and homeworking5,155Accounts for new hybrid workingTOTAL44,725 * Tonnes of carbon dioxide equivalent Carbon Reduction by Scope Overall footprint. At the end of year 2, 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. Six 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 98% renewable energy by end FY2021 Progress: Continued RE100 membership, formally committing to sourcing 100% renewable electricity 2030 target: Reduce absolute emissions from business travel by 7% Progress: Implemented carbon travel budgets to help business groups manage travel-related emissions Progress: Implemented revised travel policyto place more emphasis on virtual options 2030 target: Reduce energy consumption by 20% Progress: Trialed a predictive, dynamic buildingmanagement system Progress: Decreased emissions of our engineering workloads by applying machine learning and data science Progress: Retired 3x on-premise/co-located data centre halls as part of a plan to move more engineering workloads to more efficient Arm-based cloud data centres (carbon accounted for in Scope 3) 2030 target: Reduce carbon emissions of travel to work Progress: Measured our global commute emissionsfor the first time NEXT STEPS: Changed the way we calculate and report our global commute emissions to account for homeworking and commuting emissions under new hybrid working practices 2030 target: Reduce carbon in our supply chain Progress: Improved our methodology for calculating supply chain carbon emissions Progress: Upgraded our CDP Supply Chain membership and collected supplier disclosed carbon data for second year Progress: Set a new target to reduce our supply chain emissions by 42% – a first for Arm Progress: Launched our new RFP template which includes new climate and sustainability scores for new suppliers 2030 target: Support our people to make low-carbon choices Progress: Ran company-wide low-carbon campaigns on our appThe emissions-tracking app helps Arm's people reduce their carbon footprints Progress: Updated our Environmental Policy to provide moredetailed guidance Progress: Continued to support an on-demand sustainability training course, outlining key issues and Arm’s response Year 3: Our Goals Key Focus Areas for the Next 12 Months Our Goals for Year 3 Goal: Increase our use of renewable electricity to 100% and meet RE100 target Goal: Track our travel carbon budgets closely as travel increases post pandemic Goal: Create additional internal guidance documents to support our people to make more low-carbon decisions and support our Environmental Policy Goal: Work with suppliers to deliver our supply chain carbon-reduction commitments
