ASML N : ESG Sustainability policy

ESG Sustainability Policy

At ASML, we believe that the microchip industry is in a unique position to move forward as a society. Our vision is that we will enable the groundbreaking technology that will help solve some of humanity's toughest challenges.

As the innovation leader that makes vital systems for chip manufacturing, we are proud to play our role as technology enabler in the innovation ecosystem of the semiconductor industry. We believe digital technologies are the cornerstone of a sustainable society. Enabled by microchips, they form the heart of tools and solutions that can help society make progress and address global challenges, such as tackling climate change by reducing energy consumption and greenhouse gas (GHG) emissions.

At ASML, we aim to make positive contributions to a digital and sustainable future with lithography products and services that enable further shrink. As a responsible organization, we want to do more to become a leader in sustainability, using our innovation strengths to get there. We don't have all the answers and we can't do it alone, but we are committed to do what it takes to be a net positive company in a net positive industry.

We have translated our commitment to ESG - environmental, social and governance - sustainability into a nine-part strategy aimed at contributing to the United Nation's Sustainable Development Goals.

					Our commitment and principles
	Environment				We are committed to environmental protection by reducing our environmental footprint - GHG
				emissions, pollution, waste, water use - both from our operations, our supply chain and the use of
					our products and services in our value chain.
					•	We aim to achieve our SBTi (Science Based Targets initiative) near-term 2025 targets, which is
						in line with a 1.5°C trajectory, by making sure that our operations - scope 1 and scope 2 - run
						carbon neutral by 2025, and by executing our scope 3 roadmap towards net zero emissions by
					•	2040.
					Our carbon footprint strategy is built on three principles: reducing energy consumption
	Energy					wherever we can, using only green renewable energy, unless no other solution is possible or
					reasonably feasible, and compensating for the residual emissions.
	efficiency &				•	With regard to our upstream scope 3 footprint, we seek close collaboration with our supply
	climate action				•	chain partners, including distribution and logistics, to reduce the upstream GHG emissions.
				With regard to our downstream scope 3 footprint, we take responsibility for the environmental
						impact of our products. By executing our product energy efficiency strategy together with our
						key business partners, we aim to reduce our downstream footprint.
					•	By seeking industry collaboration on a joint roadmap, we strive toward net zero emissions for
						our products' use at our customers (scope 3) by 2040.
					•	We are committed to responsibly using water while taking actions that preserve water quality
						and conservation across our operations and in the communities in which we operate.
					•	We aspire to be a zero waste company - we aim to achieve zero waste to landfill or
						incineration from our operations and facilities by 2030.
					•	To minimize waste and maximize resources, we focus on three core strategies: reduce waste in
						our operations, re-use parts and materials from the installed base, and recycle mature products
					•	through refurbishment.
	Circular				We manage our waste through proper classification, separation and safe disposal.
				•	To produce and operate our products and systems, we need to make use of hazardous
	economy
					substances. We are committed to reduce the hazardous waste by increasing its re-use and by
						using alternatives wherever possible.
	Social				We aim to have a positive role in society - for our employees, the communities around us and
				everyone involved in our innovation ecosystem and supply chain.
					•	We define our people vision as follows: We empower each other to thrive, fueling our growth,
						happiness and business success.
					•	To pursue our long-term people vision we focus on three key areas: inspiring a unified culture,
						providing the best possible employee experience, and enabling our leadership to bring out the
					•	best in people.
	Attractive				ASML is an Equal Opportunity Employer that values and respects the importance of a diverse
					and inclusive workforce.
	workplace for				•
				We foster a culture that is inclusive of all, where different identities, backgrounds, talents and
	all
				•	passions are valued and celebrated.
					We drive various programs, designed to provide people with more autonomy in steering their
						development and career aspirations, and enabling our leaders to support the growth of the
						company.
					•	We do everything in our power to provide injury-free and healthy working conditions for
						everyone on our premises by eliminating hazards and reducing safety risks to ensure all our
						operations are safe and secure.

ASML ESG Sustainability Policy - June 2022

Public

• At ASML, we rely heavily on our supplier network to achieve the innovations we strive for. Our

suppliers are a critical extension of our value chain.

• To drive a sustainable and resilient supply chain, we emphasize supplier performance

management, supply chain risk management, and a responsible supply chain.

• We are a member of the Responsible Business Alliance (RBA), an electronic industry coalition.

Responsible

Together, we are dedicated to corporate social responsibility in global supply chains.

• To underpin our commitment, we have adopted the RBA Code of Conduct, which sets out

supply chain

ethical, social and environmental standards. We expect our key suppliers and their suppliers to

acknowledge and comply with the RBA Code of Conduct as well.

• Our Supplier Sustainability Program focuses on seven building blocks - Supplier Code of

Conduct (RBA), RBA self-assessment, responsible minerals sourcing, reducing carbon

footprint, increase re-use capabilities and reducing waste, information security, and business

continuity.

• We innovate through partnerships.

• We strengthen innovation and nurture young entrepreneurship in our industry and innovation

ecosystem.

• We collaborate closely with our customers and partners in our value chain to help them

achieve their goals and realize new technology and applications.

Innovation

• By sharing our expertise with the ecosystem, we together build a strong knowledge network to

create technological solutions that society can tap into.

ecosystem

•

We aim to be a valued and trusted partner, improving the quality of life for all, with a special

•

focus on people in underserved communities.

By partnering with businesses and organizations in the regions around the world where ASML

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is located, we build trust and give back.

Our community engagement program is built on three pillars where ASML has competence and

Valued partner

•

can create impact: education, arts & culture, and local outreach.

Through our global volunteering program, we encourage employees to become more involved

for our

in their local communities.

communities

•

The ASML Foundation is our charity of choice. Through funding and partnerships, the ASML

Foundation aims to unlock the potential of young people in need by enabling inclusive and

equitable participation in society through education.

Governance

We champion integrated corporate governance to build a relationship of trust, respect and mutual

benefit with our stakeholders.

•

We champion good integrated corporate governance, of which independence, accountability

and transparency are the most significant elements.

•

We manage ESG sustainability through a robust framework, governed by several levels to drive

accountability and execution, which include Board of Management. Our Board of Management

•

approves and signs off our ESG Sustainability policy, strategy and objectives.

Integrated

We ensure that all our business is conducted according to high ethical and professional

standards. We actively seek compliance with applicable laws and regulations in the countries

governance

•

and regions where we operate and, whenever possible, go beyond these specified standards.

We will ensure that appropriate organizational structures and management systems are in

place to effectively identify, monitor, and manage sustainability issues and performance. We

use the highest possible professional standards and continuous improvement of our ESG

performance and our management systems is a key principle for us.

•

We regard five stakeholder groups: shareholders, customers, suppliers (including contractors),

employees and society at large, including regulators and legislators.

•

Continuous stakeholder engagement, in which we embrace open dialogue and knowledge

sharing, is important in an innovation-driven industry and helps us to identify areas for

•

improvement.

Stakeholder

We communicate with all our stakeholder groups on their topics of concern and impact on us,

through various channels and at a variety of levels.

engagement

•

We aim to be transparent about the economic, environmental and social impact of our activities

and our performance goals, metrics and results.

•

We have corporate policies and procedures in place detailing our principles and compliance,

guiding us in making the right decisions and living up to our values.

Transparent

reporting

ASML ESG Sustainability Policy - June 2022

Public