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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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.