Better Health for All

KLA's principal business of providing semiconductor manufacturing equipment has no direct positive or negative health impact. The company does not generate revenue from products with established negative health outcomes, nor do its products carry health risks requiring disclosure. KLA's R&D is not focused on health-related outcomes, and its operations do not involve health-related data or clinical trials. The company does not offer health-related products or operate in the pharmaceutical, food, or addiction-prone industries. During the COVID-19 pandemic, the KLA Foundation established a $2 million global relief fund in March 2020

and committed an additional $550,000 for relief efforts in India in May 2021 . These funds targeted food banks, senior communities, and public hospitals , and procured essential medical equipment like ICU beds and oxygen concentrators , demonstrating significant contributions during a public health emergency.

Fair Money & Economic Opportunity

KLA Corporation is a capital equipment company and does not offer consumer lending, deposit, or insurance services. Therefore, KPIs related to financial products, pricing, fees, data portability, and lending compliance are not applicable to its core business. In 2023, the KLA Foundation launched an Education Equity Fund

and provided grants to HomeFirst Services, assisting over 5,000 homeless individuals with housing plans . KLA also contributed $130,500 in grants to food banks to address food insecurity .

Fair Pay & Worker Respect

KLA Corporation reported a U.S. Total Recordable Incident Rate (TRIR) of 0.25 in 2023, which is significantly below the industry average of 1.20.

In 2023, KLA was named one of Forbes' top companies for women. The company expanded global training on inclusive leadership and conducted over 20 employee training sessions focused on inclusive leadership, identity and belonging, and unconscious bias. KLA has also established multiple Employee Resource Groups (ERGs) to support diverse communities within the organization.

Fair Trade & Ethical Sourcing

KLA's Standards of Business Conduct for Suppliers set minimum ethical standards, including global human rights principles, for all suppliers

. Failure to comply may result in the termination of KLA’s business relationship . Supply chain regulatory compliance requirements, specifically for conflict minerals, are incorporated into the standard template for supplier contracts . KLA champions the Responsible Business Alliance Code of Conduct and publishes UK Modern Slavery Act Statements for 2022, 2023, 2024, and 2025 . The company's conflict minerals program aligns with OECD Due Diligence Guidance and uses the RMI Conflict Minerals Reporting Template . KLA relies on RMI and RMAP for classification and certification of smelters and refiners . KLA identifies smelters of concern due to factors like non-conformity with RMI or alleged ties to human rights issues , and believes some necessary conflict minerals may have originated in Covered Countries as of March 31, 2025 . Some suppliers provide company-level rather than component-specific data, making sourcing mapping less certain . A 2022 KnowTheChain assessment ranked KLA 35th out of 60 companies , highlighting areas for improvement in forced labor prevention, traceability, and monitoring . KLA strives to build an inclusive supply chain .

Honest & Fair Business

KLA has not incurred any ethics-related regulatory fines in the past three years. However, historically, the company settled a $65 million shareholder lawsuit in 2008 related to a stock options backdating scandal from 1997-2005, which resulted in overstated net income

and an SEC fraud charge in 2007, leading to a permanent injunction. There have been no financial restatements in the past five years. The company maintains a comprehensive International Anti-Bribery & Corruption Compliance Policy that strictly prohibits all forms of bribery and illegal payments. This policy, along with Guidelines for Third Party Business Partners and the Standards of Business Conduct, applies to all employees, officers, and directors worldwide, who are required to acknowledge their understanding and compliance. KLA also has a global Whistleblower Policy and an Anti-Retaliation Policy, explicitly stating that retaliation against good-faith reporters is not tolerated. Employees can report concerns through various channels, including their manager, HR, Legal and Compliance, a confidential EthicsPoint portal, or a toll-free Ethics Hotline.

Kind to Animals

KLA Corporation operates in the semiconductor equipment and materials sector, focusing on process control and yield management solutions.

Its core activities, including the production of inspection and metrology systems, do not involve direct interaction with animals, animal testing, or the use of biological materials. Consequently, the company has no animal-derived products, animal husbandry operations, or animal agriculture practices. KLA's business model does not inherently impact wildlife habitats or require animal-related suppliers, and its R&D is not relevant to animal-free substitution. The company maintains a neutral ethical stance regarding animal welfare due to the non-biological nature of its processes.

No War, No Weapons

KLA Corporation has no substantial evidence of active participation in programs aimed at promoting peace or disarmament, nor does it have explicit peace advocacy or initiatives. The company had limited direct involvement in military contracts, totaling approximately $3.27 million across 52 contracts between 2000 and 2020

, with $2.12 million in 2005 primarily for maintenance and repair of equipment . Its conflict minerals policy aligns with the OECD Due Diligence Guidance.

Planet-Friendly Business

KLA Corporation's near-term greenhouse gas emission reduction targets for 2030 have been validated by the Science Based Targets initiative (SBTi).

These targets aim for a 50% reduction in Scope 1 and 2 emissions from a 2021 baseline and a 52% decrease in Scope 3 emissions for products. The company also aligns its climate targets with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. In 2023, KLA invested $42.3 million in developing energy-efficient semiconductor manufacturing technologies, achieving a 34.7% energy consumption reduction in manufacturing equipment compared to previous models. Additionally, a new global waste management system was implemented in 2023 to enhance waste data collection and management across 23 categories. KLA employees engaged in tree-planting projects in Israel and Singapore in 2023.

Respect for Cultures & Communities

KLA Corporation, through the KLA Foundation, provided $7.4 million in community funding in 2023.

These funds supported general community initiatives such as the Education Equity Fund and aid for local food banks and unhoused individuals. However, the provided evidence does not offer specific data points regarding the percentage of revenue reinvested locally, the number of formal partnerships with indigenous or local community groups, or any specific focus on cultural heritage preservation or indigenous rights.

Safe & Smart Tech

Personal information is retained for at least 2 years after the last interaction, and log-in and cookie data for no more than 24 months.

Access to personal information is restricted to employees who need it for specific jobs, and there are no documented incidents of unauthorized data use. The company processes personal information as required by law, complies with individual data rights requests, and provides specific disclosures for California residents and individuals in the European Economic Area, Switzerland, and the United Kingdom. Users can opt-out of marketing communications and have rights to access, update, correct, restrict, or delete their personal information, with a privacy request form available. A job posting for "Senior Product Security Engineer, Bug Bounty Operations" suggests the company has a bug bounty program.

Zero Waste & Sustainable Products

KLA has implemented numerous waste reduction initiatives, including water recycling, efficient building design, and continuous improvement programs to optimize operations.

The company works with its supply chain to reduce resources used in fabs and employs process control improvements such as upgrading solutions, adding inspection and metrology steps, optimal sampling, and faster learning cycles, all aimed at reducing wafer scrap, rework, and yield loss. In 2023, KLA introduced new data collection software to better identify waste impacts across its Super Sites, establishing definitions for 23 waste categories and eight disposition methods. KLA disclosed hazardous waste data for the first time, totaling 126.8 metric tons across its Super Sites, representing 4% of total waste, and seeks opportunities to reduce it. In 2023, 30% of total water withdrawals across all Super Sites were from recycled water, a 16% increase from 2022. The company completed a water risk assessment for its Super Sites and is developing a comprehensive product energy efficiency strategy that incorporates efficiency metrics into product development processes. A cross-divisional Product ESG Steering Team was launched in 2023 to focus on product efficiency.