Fiscal Year 2023

Sustainability Report

A Letter From Our CEO

3

Our 2023 Story

4

Who We Are

5

Our ESG Approach

6

FY2023 Highlights

7

Minimizing Our Environmental Impact

8

Strengthening Our Supply Chain

and Driving Product Innovation

12

Our People

17

Giving to Our World

21

Doing Business with Integrity

25

General Disclosures

27

Our Business

28

Our Company

28

A Portfolio of Consumer

and Business Brands

28

Our Operations and Workforce

28

Our Strategy

29

Building a More Sustainable Future

- One Data Point at a Time

29

Materiality and Stakeholder Engagement

29

Sustainable Development Goals

30

Governance

31

Environment

32

Energy and Emissions

32

Product Life Cycle Impacts

38

Chemicals and Hazardous Substances

40

Supply Chain

41

Human Rights and Labor Practices

41

Critical Minerals and Metals

43

Supply Chain Resiliency

50

Workforce, Workplace

and Community

51

Inclusion

51

Employee Attraction, Retention

and Engagement

54

Health and Safety

57

Global Giving and Doing

61

STEM Education

61

Hunger Relief

62

Environment

62

Equality

63

Integrity

64

Our Culture of Ethics

64

Anti-Corruption

65

Data Privacy and Security

66

ESG Data

68

Indices

77

GRI Index

77

SASB Hardware Standard Index

82

SASB Semiconductors Standard Index

83

TCFD Index

84

UN SDG Index

85

About This Report

GRI 2-3

We are proud to share Western Digital's 2023 Sustainability Report covering Fiscal Year 2023 (FY2023), which has been prepared with reference to the Global Reporting Initiative (GRI) Standards: Core option. The report also references the Sustainability Accounting Standards Board (SASB) Hardware Standard and the SASB Semiconductors Standard. Furthermore, we have aligned our disclosures with the UN Sustainable Development Goals (UN SDGs) and the Task Force on Climate-Related Financial Disclosures (TCFD). Please reference this report's indices for additional information.

This report is organized into three parts:

  • Our 2023 Story offers significant highlights from FY2023
  • General disclosure section provides a deeper, more technical look at our approach to sustainability and our progress
  • Indices provide a comprehensive view of the data that informs our sustainability efforts

We are always looking for opportunities to improve our transparency and better demonstrate our performance. If you have any feedback about this report or other disclosures, please contact us at sustainability@wdc.com.

CEO LETTER

OUR 2023 STORY

GENERAL DISCLOSURES

OUR BUSINESS

OUR STRATEGY

ENVIRONMENT

SUPPLY CHAIN

WORKFORCE

GLOBAL GIVING

INTEGRITY

DATA

INDICES

PG_ 2

A Letter From Our CEO

Dear Stakeholders,

Over the past year, we have continued our journey towards sustainable excellence, building upon the strong foundation we established in previous years. Our efforts around environmental, social, and responsible business have always been an integral part of our corporate DNA. These focus areas have guided us to make meaningful decisions that benefit our business and have a positive impact on the environment, society, and our stakeholders.

The past year had some unique challenges. Throughout it all, our teams around the world showed incredible strength, resilience, and innovation. It led us to collaborate in impactful ways and think critically and more strategically than ever. We continued to lead with genuine care for one another, pride in creating innovative products for our customers, and an unwavering commitment to support the communities in which we operate.

We continue to distinguish ourselves through both transparency and substantive progress:

Protecting the Environment

Through thoughtful planning and execution, we have already set and achieved goals such as running certain facilities on renewable energy and reducing energy consumption per unit produced. But we continuously strive to do more.

In June 2023, we announced a new set of ambitious sustainability goals that serve as a testament to our determination to drive positive change in the world. These goals reflect our recognition of the pressing global challenges we face and our commitment to playing a vital role in addressing them. Most notably, we have set a target to achieve carbon neutrality across our global operations. This means reducing our carbon emissions, investing in renewable energy sources, and offsetting any remaining emissions to ensure a net-zero impact on the environment. More details about the new goals and initiatives that will drive our progress are detailed in this report.

Investing in Our People

We are intensifying our efforts to create a diverse and inclusive workplace where every voice is heard, valued, and empowered. Our priorities include a continued focus on fair compensation, improved feedback channels, empowering our employee resource groups, and driving greater inclusion by fighting bias.

Evolving Our Operations

Over the past year, our global operations team has fostered a new organization to help drive sustainability improvements across key

parts of our supply chain. From uncovering opportunities for greater supply chain efficiency to understanding the impacts of waste and water usage, we have taken great strides in integrating strategic, environmentally driven choices in our product development. In doing so, we continue to refine our production processes while being able to increase more positive social and societal impacts outside our walls.

Looking Ahead

These priorities are not just guideposts but our roadmap to a more sustainable and responsible future. We recognize that achieving them

will require unwavering dedication, innovation, and collaboration with our stakeholders. At Western Digital, we firmly believe that businesses have a vital role in addressing global challenges, and sustainability is not just a choice but an imperative. Together, we are shaping a brighter, more sustainable future for our planet and generations to come.

Thank you for your interest in Western Digital and our FY2023 Sustainability Report.

David Goeckeler, CEO

We continued to lead with genuine care for one another, pride in creating innovative products for our customers, and an unwavering commitment to support the communities in which we operate."

David Goeckeler

CEO, Western Digital

CEO LETTER

OUR 2023 STORY

GENERAL DISCLOSURES

OUR BUSINESS

OUR STRATEGY

ENVIRONMENT

SUPPLY CHAIN

WORKFORCE

GLOBAL GIVING

INTEGRITY

DATA

INDICES

PG_ 3

Our 2023 Story

CEO LETTER

OUR 2023 STORY

GENERAL DISCLOSURES

OUR BUSINESS

OUR STRATEGY

ENVIRONMENT

SUPPLY CHAIN

WORKFORCE

GLOBAL GIVING

INTEGRITY

DATA

INDICES

PG_ 4

Who We Are

GRI 2-6

Silicon-to-System Innovation and Engineering

Our Vision

To create breakthrough innovation

  • inspired by the convergence of human potential and digital transformation - that enables the world to actualize its aspirations.

Our Purpose

To be the world's iconic data storage company

Our Mission

To unlock the potential of data by harnessing the power to use it.

Our Values

We think big.

We create possibility. We make it happen. We do it together.

Advanced Media, Controller,

Device Innovation

Head, Firmware/FTL

Mechanical, packaging, testing,

software, firmware, and controllers

Platforms Innovation

Integrated Storage

Electrical and mechanical design,

Platforms

firmware, and diagnostics

CEO LETTER

OUR 2023 STORY

GENERAL DISCLOSURES

OUR BUSINESS

OUR STRATEGY

ENVIRONMENT

SUPPLY CHAIN

WORKFORCE

GLOBAL GIVING

INTEGRITY

DATA

INDICES

PG_ 5

Our ESG Approach

At Western Digital our approach to ESG enables us to create shared value for our business and the world around us. Across our global operations, our focus on sustainability helps us create a brighter future

Forces Shaping Our Approach

We operate in an increasingly complex, interconnected world. For a global business like Western Digital, trends and forces deeply impact the way we approach sustainability and environmental, social, and governance (ESG) considerations.

for our business, our customers, and our employees.

As a company facing ongoing environmental and social challenges, we believe rooting our decisions and operations in sustainable business practices can:

Supply Chain

Achieving resilience across our supply chains calls for visibility, agility, collaboration, and alignment across our operations. As supply chain disruptions continue to be a major challenge for businesses across the

Anti-Corruption / Ethics

With increased investor, employee, and customer focus on responsible conduct, corruption-free business is seen as a given

- a shared value. Taking measures to reduce

corruption helps bring certainty to business

Lead to more efficient and resilient business operations

Increase our investor pool with demonstrable ESG performance

global economy, we continue to bring a big-picture perspective to our entire extended supply chain.

outcomes, reduce possibility of regulatory and

legal actions, drive down litigation risk, and

generate profitability in a sustainable fashion.

Help us meet our customers' expectations and efficiency targets

Reduce risks of misconduct and legal liability

Enhance the reliability of our supply chain

Improve the health, well-being, engagement, and productivity of our employees

Upskilling the Workforce

At Western Digital, people are our biggest asset. Employees are increasingly looking for greater purpose and flexibility in their jobs. By continuing to keep a pulse on the personal and professional needs of our team members, we can offer a work environment that attracts the best talent and demonstrates our commitment to

Climate Change

From increasing global temperatures to extreme weather events to biodiversity loss, climate change has implications on food security, ecosystems, and human well- being. Climate-related risks are key factors we constantly assess across the diverse regions and supply chains we operate in. Our ambitious climate targets guide us to

In June 2023, Western Digital announced ambitious new corporate sustainability targets to build upon the science-based targets we set in 2021 and help guide sustainably driven operations that will make tangible environmental impact throughout our organization. The new targets include powering our operations with 100% renewable energy, achieving net zero Scope 1 and Scope 2 emissions across our operations, as well as water and waste reduction targets. These goals exemplify our dedication to reducing the impact of our business operations on the environment and communities around the world.

Read more about our goals here.

the well-being of our employees.

Automation

Industries around the globe are experiencing rapid change due to automation technologies. This can lead to increased efficiency and reduced levels of waste, new streams of innovation, potential cost savings, and new opportunities for career growth. We also continue to monitor risks such as quality control and privacy, while keeping up with evolving regulations.

reduce our impacts and we will continue to disclose our progress.

Evolving Regulations

The landscape of ESG reporting involves increased regulatory focus, greater investor scrutiny, and a recognition of the broader impact of businesses on the environment and society. Adhering to corporate practices and reporting to reputable regulatory frameworks allows Western Digital to hold ourselves accountable and meet ongoing stakeholder expectations.

CEO LETTER

OUR 2023 STORY

GENERAL DISCLOSURES

OUR BUSINESS

OUR STRATEGY

ENVIRONMENT

SUPPLY CHAIN

WORKFORCE

GLOBAL GIVING

INTEGRITY

DATA

INDICES

PG_ 6

FY2023 Highlights

Global Giving

Powered by the passion of our employee volunteers, FY23 was a record-breaking year in expanding our community involvement. We are proud of our global giving and doing achievements including:

Environment

Western Digital's four new corporate sustainability targets underscore our commitment to being good environmental stewards and put forth data-driven goals and metrics to hold our organization accountable for mitigating the impacts of climate change.

Our commitments include:

  • Achieving a 23.8 percentage point increase of employee participation in company-sponsoredvolunteerism from FY22
  • Engaging 18,629 unique volunteers
  • Hosting 241 company-sponsored volunteer events
  • Welcoming employee participation from 59 sites across the globe
  • Running our 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, versus 2022
  • Diverting 95%+ of our operational waste from landfillsby 2030

Workforce

As of June 30, 2023:

  • Women represented 26% of our management positions and 23% of our technical staff
  • 62% of our U.S. management positions were represented by members of Asian, Black/African American, Hispanic/Latino or other racially or ethnically diverse communities, a 1.4 percentage point increase compared to 2022

Product Innovation

Western Digital's Recycling Initiative seeks to understand how recycled content is used in the company's products and packaging. Several internal teams were involved in this initiative to survey, understand, and help improve the results of our product Life Cycle Analysis (LCA) and recycled content in our product components.

Analyzing hundreds of HDD drive components, the team:

  • Focused on major weighted components containing aluminum, steel and rare earth metals
  • Completed third-partyverification confirming 40-41% recycled content by weight in recent HDD products

Talent Development

In FY2023, nearly 2,000 employees across various levels completed upskilling programs and were able to move through our workforce growing path from Operator to Engineer in Malaysia and Thailand.

This was made possible through strategic workforce growth paths, our training center of excellence, and initiatives such as simulation labs, autonomous robotic training, and automation machine training.

Read more about the details and results of our upskilling initiatives in Our People.

CEO LETTER

OUR 2023 STORY

GENERAL DISCLOSURES

OUR BUSINESS

OUR STRATEGY

ENVIRONMENT

SUPPLY CHAIN

WORKFORCE

GLOBAL GIVING

INTEGRITY

DATA

INDICES

PG_ 7

Minimizing Our

Environmental

Impact

We're committed to protecting and preserving our planet. This commitment means we must mitigate risks posed by climate change, resource scarcity, and environmental degradation and do our part to reduce impacts. Through thoughtful planning and meticulous execution, our customers, our communities, and our team members can collectively make an impact through sustainably created products.

IN THIS SECTION:

New Corporate Sustainability Targets

9

Key Collaboration

10

Committed to Driving Progress

11

CEO LETTER

OUR 2023 STORY

GENERAL DISCLOSURES

OUR BUSINESS

OUR STRATEGY

ENVIRONMENT

SUPPLY CHAIN

WORKFORCE

GLOBAL GIVING

INTEGRITY

DATA

INDICES

PG_ 8

New Corporate

Sustainability

Targets

Western Digital strives to be a sustainability leader. The new sustainability commitments we announced in June 2023 were created to have a major impact on our operations, product development, and supply chain management, as well as on our global environmental footprint.

Western Digital's Sustainability Targets

ENERGY AND EMISSIONS

Goal

Actions

Performance

Emissions Scope

Net Zero

In addition to transitioning to RE, we are innovating to reduce

1 & 2

Scope 1 emissions and reduce energy consumption.

We are ahead in our combined Scope 1 and 2

MFG sites by 2032

emission goals with regards to our SBT trajectory

42% ↓

We are actively looking to reduce Scope 1 emissions through

in FY2023. Many facilities-related projects and

out-of-the box initiatives involving technology and

reduced usage of high global warming potential (GWP)

strategy are driving this progress. In FY2023, we

MFG sites by 2030

chemicals in our manufacturing processes. We are working to

achieved a 20.7% reduction in our combined Scope 1

secure long-term renewable energy power purchase agreements

and 2 emissions, versus our FY2020 baseline.

(PPAs) and other renewable energy purchases to reduce our

Scope 2 emissions.

Emissions Scope 3

50% ↓

We are reducing our emissions from use of sold products

Since FY2020, we have realized a reduction in

Category 11: Use of

through a combination of increased storage capacity per drive

emissions intensity in our Scope 3, Category 11

and innovations in the power consumption and efficiency of

Use of Sold Products by 35%, on an emissions

Sold Products

Use phase emissions

our drives.

per petabyte basis.

intensity by 2030

Renewable Energy

100%

We focus on long-term power purchase agreements

As of 2023, three of our sites were running on

for renewable energy.

100% renewable energy. Several more sites are

MFG sites by 2030

on path to achieve 100% RE in the next few years.

Company-wide, we have achieved 31% renewable

electricity consumption. Western Digital continues

to make steady progress in renewable electricity

procurement, balancing availability and cost in

our regional strategy.

WATER

Water Withdrawn

20% ↓

by 2030

In FY2023, we implemented several water conservation projects successfully. In the coming years, we plan to implement capital expenditure-focused water recycling programs, and to seek Alliance for Water Stewardship certification for our factories.

Due to a combination of successful water conservation projects and factory shutdowns due to reduced production in FY2023, we achieved an 18% reduction in water withdrawals, versus FY2022.

WASTE

Waste to Landfill from Operations

<5%

by 2030

We have developed a roadmap to achieve our <5% waste to landfill target by 2030. We are planning to implement structural waste reassessment and segregation programs. Beginning in FY2024, we plan to investigate and implement technologies such as pyrolysis, redirection of metal hydroxide waste to cement production, and other methods to increase our waste diversion.

In FY2023, we sent approximately 19% of our operational waste to landfill.

CEO LETTER

OUR 2023 STORY

GENERAL DISCLOSURES

OUR BUSINESS

OUR STRATEGY

ENVIRONMENT

SUPPLY CHAIN

WORKFORCE

GLOBAL GIVING

INTEGRITY

DATA

INDICES

PG_ 9

Key Collaboration

CASE STUDY

World Class

Achieving our ambitious goals requires a collaborative, consistent effort from teams across our organization. From our workforce to external partnerships and third-party assessments, Western Digital is bringing together diverse perspectives that will help us effectively drive towards our energy, emissions, waste, and water goals. By bringing together internal and external stakeholders with essential expertise, we can better integrate and elevate the processes, technologies, and innovations that provide sustainable products to the world.

Sustainability Champions

Western Digital's newly revamped Conservation Program is now more holistic, engaging cross- functional Sustainability Champions from across manufacturing teams - especially team members from process engineering and test engineering. Bringing together all corners of our workforce in this way is essential to our ability to achieve our goals.

Our Conservation Program management office integrates various sites via meetings held on a regular basis. During these sessions, clear responsibilities are established for each department and its designated Sustainability Champion. Each Sustainability Champion is then responsible for achieving goals.

For example, when cross-functional teams collaborate, they gain deeper knowledge about our SBTi goals and forecasted trajectories.

With this insight, they can strategize functional projects for processes such as reducing our manufacturing quality checkpoint test times to minimize emissions as our production volume grows.

Corporate Real Estate and Workplace (CREW)

This centralized organization manages facility operations globally and enables collaborative work across locations, such as benchmarking and real-time lessons and learnings from our site locations worldwide.

Sustainability Council

Senior leaders from Manufacturing, Facilities, Engineering, and other business units come together for ongoing education and updates around how new sustainable processes and products are performing. This new level of collaboration is expected to accelerate Western Digital's environmental goals as well as science-based emissions reduction goals.

Strategic Data Management

Energy consumption data and emission data are managed on a common, global application, and the reduction program team has visibility not only into their own facility's data but other sites' as well. The shared data promotes benchmarking with other sites and helps identification of further reduction opportunities.

Building Management System Initiative

Across our operations, Western Digital's sites are ranked as Tier Two for overall Building Management System (BMS) capability. During a collaborative operations project in FY23, a team of cross-functional experts began exploring how to elevate the company's BMSs to Tier 3. Moving to Tier 3 status would ensure ready availability of data critical to sustainability (Descriptive), while also enabling real-time analytics of deviations from setpoints (Diagnostic), and proactive analytics-driven options for optimization (Prescriptive).

The team designed a four-tiered maturity model of Western Digital's Building Management Systems, reviewed existing manufacturing facility operations, and evaluated the gaps that need to be closed to get to advanced maturity of real-time energy and water resource optimization.

Using the data from this model, we began the development of a capital investment plan for selected locations and systems to move Tier 2 BMS level to Tier 3.

In parallel, as near-term actions, the team identified quick-win solutions, consisting mainly of Variable Speed Drive (VSD) installations for chilled water pumps and zero purge dryers. While this does not move the ratings of BMS maturity, it provides a beneficial energy consumption and utility cost reduction until larger BMS changes can be made. Savings are anticipated to commence in FY2024.

CEO LETTER

OUR 2023 STORY

GENERAL DISCLOSURES

OUR BUSINESS

OUR STRATEGY

ENVIRONMENT

SUPPLY CHAIN

WORKFORCE

GLOBAL GIVING

INTEGRITY

DATA

INDICES

PG_ 10

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Disclaimer

Western Digital Corporation published this content on 30 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2024 21:16:28 UTC.