Western Digital’s Drive to Reduce Energy Consumption and Increase Resource Efficiency in Product Design: A Comprehensive Overview from the Company’s 2022 Sustainability Report

Western Digital is delighted to present its FY2022 Sustainability report, which showcases the impressive progress made in a wide range of sustainability initiatives. This includes energy efficiency improvements, reductions in emissions, waste elimination, and bolstering supply chain resiliency. Additionally, the company has been actively promoting diversity, equity and inclusion throughout its operations. Here are some highlights from the report:

Energy and Emissions Reductions

• We are ahead of schedule in operationalizing our Science Based Targets. Net Scope 1 and 2 emissions in FY2022 were more than 14% lower than our baseline (FY2020), putting us ahead of our FY2022 target milestone of 8.4%
• The World Economic Forum recognized Western Digital factories: Sustainability Lighthouses: Penang, Malaysia and Shanghai, China. Global Lighthouse Network: Penang, Malaysia, Prachinburi, Thailand and Shanghai, China 

• We continue to expand our use of renewable energy. As of mid-2021, Western Digital’s facilities in Northern California run on 100% renewable energy and a site in Malaysia adopted certified 100% hydropower during FY2022

• Building management systems IoT capabilities have helped reduce emissions per unit of production at our Penang facility by approximately 40% (compared to 2017) 
• From FY2021 to FY2022, Western Digital reduced the energy intensity to manufacture our products by more than 13%
• The SanDisk Ultra Eco™ USB is Western Digital’s first eco flagship consumer product, made with over 70% recycled plastic. Users can experience USB 3.2 Gen 1 performance with read speeds up to 100MB/s all while supporting reduced environmental impacts

As a global enterprise with operations in several vulnerable regions of the world, Western Digital is sensitive to the impacts of climate change. We are committed to doing our part to decrease GHG emissions, reduce energy consumption, lower our climate impacts, and improve climate resiliency.

Waste Management and Reduction

• The factory at Batu Kawan, Penang, Malaysia achieved a normalized (per unit) reduction in energy by 41%, water consumption by 45%, and material waste by 16%, while growing 43% (Compound Annual Growth Rate) in the last four years with a smart factory model
• Three Western Digital sites in Malaysia and Thailand recycled waste sludge via a third-party partner to create a raw material that can be used to manufacture cement, resulting in approximately 2,665 metric tons of waste sludge diverted from landfills during FY2022 

• Redesigned retail packaging reduced Western Digital’s annual blister paper usage by over 276,000 kilograms (kg)
• Facilitated the recycling of 21,400+ devices since April 2020 through our Easy Recycle Program and 9.2 metric tons of waste diverted from landfills

Working as one global team, we focus on collaboration and promote knowledge sharing across locations to identify opportunities to optimize energy and water use and responsible waste management. In FY2022, our Energy Resource Management (ERM) team made significant progress towards our target for energy conservation and overachieved our 2% year-over-year reduction targets for water conservation and waste reduction. 

Supply Chain Resiliency 

• Over the last two fiscal years, we completed full scope Validated Assessment Program (VAP) initial audits in our Responsible Business Alliance (RBA) audit factories in China, Malaysia, and Thailand, where the audits resulted in Platinum and Silver certificates in Thailand and a Platinum certificate in China and Malaysia. 
• We continue to engage with our supply partners to disclose climate and water-related information to CDP (formerly the Carbon Disclosure Project)
  • In 2021, 78% of in-scope Western Digital suppliers report active water security targets and goals and 72% report active climate targets

Western Digital has an extensive in-house manufacturing network and hundreds of global production parts suppliers and contract manufacturers across the globe. Our supply chain approach has the overall objective of increased resiliency and accountability, which we believe will lead to better working conditions and, as a result, a more responsible and resilient supply chain.

Diversity and Inclusion 

• In FY2022 members of Asian, Black/African American, Hispanic/Latino, or other racially or ethnically diverse communities represented 60% of our U.S. management positions
• In 2022, we expanded our pay equity analysis to cover 100% of our total global employee population 

• Experienced percentage point increases of 2.5 for women, 1.4 for Hispanic/Latino and 1.0 for multiracial representation among our new college graduates in FY2022 

Western Digital believes that our employees are our most valuable resource and are what gives us a competitive edge. We know we’re at our absolute best when we leverage the diversity of our approximately 65,000 employees in more than 30 countries around the world, focusing our DEI efforts on Talent Attraction, Development, and Inclusive Culture and Engagement. We’re determined to develop a culture in which underrepresented groups and all the employees of Western Digital feel they truly belong.