Environmental,

Social, Governance

Report 2022

Table of Contents

Introduction

3

Letter from the President and Chief Executive Officer..........................

3

Corporate Governance

11

Board of Directors Demographic Highlights........................................

12

Oversight of ESG and Risk..................................................................

13

Policies.................................................................................................

14

Cybersecurity and Data Privacy...........................................................

15

Social

21

Workforce Metrics................................................................................

22

Diversity, Equity and Inclusion.............................................................

23

Employee Learning and Development.................................................

24

Employee Engagement and Recognition.............................................

25

Employee Benefits and Well-being......................................................

26

Employee Safety..................................................................................

27

Product Safety.....................................................................................

29

Product Quality....................................................................................

29

Supply Chain........................................................................................

30

Community Involvement and Charitable Giving..................................

31

Business Overview

4

About MKS.............................................................................................

5

Key Business Metrics.............................................................................

6

Product Applications..............................................................................

7

Key Product Highlights..........................................................................

8

Improved MKS ESG Ratings................................................................

10

Environment

16

Environmental Management System...................................................

17

Environmental Metrics.........................................................................

18

Approach to Reducing Emissions........................................................

19

Product Life Cycle................................................................................

20

About This Report and Indices

32

About This Report................................................................................

33

Sustainability Accounting Standards Board........................................

34

Task Force on Climate-related Financial Disclosures..........................

36

2

Letter from the President and Chief Executive Officer

I am pleased to present our second annual ESG report, which highlights the progress we have made on our commitments to environmental, social, and governance (ESG) issues. This year, we changed the name of our program from Corporate Social Responsibility (CSR) to ESG to reflect changes in nomenclature we've seen across our stakeholders and investors. However, whether called CSR or ESG, our commitment to operating our business in an environmentally and socially responsible manner, in tandem with our employees, customers, suppliers and communities, remains unwavering.

For MKS, achieving a more sustainable future means drawing upon our culture of human ingenuity to solve problems and deliver solutions. Cutting edge science and engineering are starting points for us. Equally important is how we listen, collaborate, and solve our customers' hardest technology challenges by working together. We are inspired to build trust through collaboration and to embrace the diverse talent necessary to accomplish our goals.

In August, we acquired Atotech Limited, a global leader in process chemicals, equipment, software and services for printed circuit boards, semiconductor IC packaging and surface finishing. With roots going back to the 1800s, Atotech has a rich history of innovation as a key enabler of electronic device advancement and next generation technologies across a wide array of industries that are critical to our daily lives.

We are pleased to have the Atotech team join MKS. Like us, Atotech is committed to bringing environmental sustainability and social responsibility to the forefront of its operations as well as its customer value proposition, and we look forward to reaching new heights in our ESG journey together. While this ESG report focuses mainly on MKS' performance in 2021, and therefore does not include Atotech, we intend to present future updates and reports on a consolidated basis as one company.

Our key ESG achievements in this report include:

  • Instituting a formal Global MKS Management System for Environmental, Health, and Safety (MEHS) to protect MKS' employees, other stakeholders, and the environment. We are implementing this strong foundation for MKS' corporate Environmental Health and Safety system in a stepwise process across the organization into 2026.
  • Expanding our data collection of environmental metrics to cover 95% of our total operational electric usage (excluding recently acquired Atotech)
  • Expanding disclosure of Scope 3 emissions and tracking additional Scope 3 categories (excluding recently acquired Atotech) to understand our emissions impact across our value chain.
  • Expanding Diversity, Equity and Inclusion (DE&I)-specific training to MKS leaders around the world and expanded diversity training to all employees globally.
  • Setting DE&I goals for executives.
  • Conducting an analysis of our global employees' compensation that resulted in equitable pay for our employees.
  • Rolling out our first annual employee engagement survey with encouraging results across several key categories.

As we look ahead, we believe a key driver of our success continues to be building relationships with our stakeholders on a foundation of integrity, trust, and collaboration. Over the past few years, MKS' business has evolved, and with the acquisition of Atotech, continues to grow in ways that we believe drive value for our stakeholders. While there have been many exciting developments at MKS, one goal remains the same: developing products that enable our customers to be more successful, our planet more sustainable, and our communities safer and more productive. We look forward to sharing what is to come.

John T.C. Lee

President and Chief Executive Officer

3

Business Overview

E N V I R O N M E N TA L , S O C I A L , G OV E R N A N C E R E P O R T 2 0 2 2

About MKS

At MKS, we have along historyof leveraging ourcollective curiosity to understand and develop solutions that are at the core of many key technological innovations. We deliver foundational technology solutions to leading edge semiconductor manufacturing, advanced electronics and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world's leading technology and industrial companies.

MKS was founded in 1961 in Burlington, Massachusetts to develop advanced measurement instruments. Our first product was the Baratron® capacitance manometer, which measures gas pressure within a semiconductor wafer fabrication chamber. The MKS name is derived from this early focus on measuring the basics of distance, weight, and time: Meter, Kilogram, and Second.

In August 2022, MKS acquired Atotech and together we are advancing frontiers. Atotech brings a rich history that is critical to our technological solutions and applications, including a long standing commitment to sustainability.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

MKS Instruments Inc. published this content on 14 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2022 18:52:03 UTC.