2023 is the ESG Year of Action. In 2022, ESG's development in China ushered in two landmark events: one is the establishment of the Social Responsibility Bureau, which will "guide and promote enterprises to actively practice the ESG concept" as one of its responsibilities, promote more listed companies holding central enterprises to disclose ESG reports, and strive to disclose "full coverage" of ESG reports by 2023; Second, the CSRC issued the Guidance on Investor Relations Management of Listed Companies, which officially included ESG as one of the contents of the communication between listed companies and investors. For many public companies, 2023 will be the year when the conversation moves from action to tracking and gathering critical information, thanks to a wider focus on ESG and increased reporting on environmental risks.
Set realistic targets and reduce emissions accurately. Electronics are the fastest-growing source of waste in the United States, and consumers expect companies not only to comply with laws and regulations, but also to clearly map out realistic goals for a sustainable planet. Seagate has set its own precise goals, for example, by 2030, all of Seagate Technology's research and development and production sites will be 100% renewable energy; To achieve full carbon neutrality by 2040. So what progress has been made? In 2021, Seagate reduced emissions per exabyte of data storage by 26% (compared to 2020) for Scope 1 (GHG emissions generated directly by the plant) and Scope 2 (GHG emissions generated by electricity purchased directly by Seagate) by market. By 2022, Seagate has also reduced the amount of hazardous waste generated per exabyte by 9 percent and kept 87 percent of non-hazardous waste out of landfills.
Hardware manufacturers will work with cloud service providers to deploy a circular economy. At the United Nations Climate Change Conference in 2021, all industries are being asked to make their own commitments. Next year we will see how well each organization has achieved its goals, especially the more challenging ones, such as those relating to the circular economy. Hardware manufacturers such as Seagate have been testing and validating their product and material refurbishment, reuse and recycling models. As far as Seagate is concerned, the most sustainable goal is to extend the life of the hard drive. One of the most critical tasks is to educate customers and industry partners about the value of the circular economy. To succeed, the circular economy must make economic sense and drive innovation that benefits hardware producers, service providers and customers. The circular economy can solve the problems of greenhouse gas emissions, rare earth mineral conservation, financial savings and other key areas, which is why the circular economy is recognized as the commanding heights of sustainable development.
A circular economy is more possible when businesses, supply chains and customers work closely together. Seagate has been studying the circular economy for a long time, and together with our partners, we have achieved valuable results. For example, in fiscal 2020, Seagate and Dell Technologies launched a closed-loop aluminum recycling pilot project to transport motor base components and aluminum platters from discarded hard drives to aluminum substrate smelters for recycling. The pilot has been adopted as a formal process and 24,700 new 2TB hard drives have been produced from recycled materials, reusing up to 39.4 tonnes of scrap aluminium. In addition, Seagate's rare earth magnet recycling program has also paid off, and 1.1 tons of rare earth materials have been recovered so far, with each solid and steady step reducing the environmental impact.