Fair Pay & Worker Respect

In 2024, MKS Inc.'s CEO to median employee pay ratio was 126:1.

Employee sentiment, as reflected in Glassdoor reviews, shows an overall rating of 3.8 out of 5 stars, with 68% of employees recommending the company to a friend. The company has a record of zero labor-law or human-rights violations in the past two years, with the most recent workplace safety or health violation from OSHA occurring in 2020.

Fair Trade & Ethical Sourcing

MKS Instruments' Supplier Corrective Action Request (SCAR) process requires an interim root cause analysis and corrective action report within 72 hours, with possible extensions requiring written approval.

MKS has adopted the Responsible Business Alliance (RBA) Code of Conduct as its Supplier Code of Conduct, which applies to operations, suppliers, vendors, and partners, and expects suppliers to adhere to its ethics standards. MKS conducts annual sourcing reviews to assess its global supply base and applies risk mitigation steps for materials that carry some risk, including securing safety stock and second sources. In 2023, the company achieved a 19% reduction in overall high-risk products.

No War, No Weapons

MKS Instruments manufactures dual-use products, such as pressure transducers and capacitance manometers, which are used in both civilian processes and uranium enrichment.

Approximately 2% of the 1,000-1,200 new items added monthly to MKS's material master data are classified as dual-use under EU export control regulations. Between 2007 and 2012, MKS products were allegedly diverted to unauthorized end-users in Iran's South Pars Industrial Complex and nuclear program, violating U.S. export controls and U.N. sanctions. MKS's Chinese subsidiary was involved in fraudulently obtaining export licenses for over $6.5 million worth of pressure transducers. In response, MKS implemented a "Controlled Delivery Model" in 2013, a headquarters-controlled compliance and logistics system, and introduced a system of end-user validation requiring U.S. official validation for all customers. However, 90% of equipment manufactured by MKS’ Atotech is sold abroad, mainly in Asia, and there is no specific percentage of exports covered by verifiable end-user certificates, only a scheme to falsify end-user information. MKS states its products cannot be used for chemical/biological weapons, sensitive nuclear activities, or missile technology activities. MKS is committed to identifying suppliers sourcing conflict minerals from conflict sources in the DRC region, with 76% of direct suppliers responding to surveys in 2024, representing 90% of direct supplier spend. Four identified smelters in Covered Countries are on Responsible Minerals Assurance Process Known Smelters & Refiners Lists. MKS will work with non-compliant suppliers to end the practice or identify alternatives. Senior management is briefed about the results of due diligence efforts. MKS's due diligence process for conflict minerals is designed to conform generally with the OECD Due Diligence Guidance.

Planet-Friendly Business

MKS Instruments reported total Scope 1 and 2 market-based emissions of 69,026 tCO2e in 2023, a 7.38% decrease from 74,528 tCO2e in 2022.

The company has conducted a Scope 3 screening analysis and is working to develop a consolidated Scope 3 emissions inventory. MKS has committed to a 42% reduction of combined Scope 1 and 2 emissions by 2030 from a 2022 baseline, aligned with SBTi criteria, and plans to submit combined Scope 1, 2, and 3 targets to SBTi for validation in 2025. In 2023, 14% of electricity consumption was procured from renewable sources, including 148 MWh generated on-site. Water withdrawal per $1M revenue was 159 m³ in 2023, a reduction from 196 m³ in 2022. The company diverted 45% of its waste from landfill in 2023. MKS incorporates the recommendations of the TCFD in its ESG report but has not conducted a climate scenario analysis. The company identified key sites to study water management using the WRI Aqueduct Water Risk Atlas for sites with high and extremely high water stress, with 10-20% of water sourced from stressed basins. In 2023, solar road lamps were installed in Guangzhou, reducing an estimated 60 tCO2e annually. MKS surveyed most critical suppliers on material ESG topics in 2022 and 2023.

Respect for Cultures & Communities

MKS provides all employees with access to a confidential, anonymous, 24/7 MKS Compliance Hotline, operated by a third party.

This mechanism is available to 100% of its workforce, but it is not explicitly described as a community-specific grievance mechanism, which aligns with the -50 tier for 15-30% of operational sites having grievance mechanisms, as it's not explicitly for communities. The company's workforce spans over 25 languages. and its MEHS policies are translated into local languages and made available to each region. MKS's Inclusion Academy offers workshops on cultural competency, and its Executive Development Program and Emerging Leaders Program integrate inclusive leadership and cultural competency content, but no specific percentage of employees completing this training is provided, indicating standard diversity training without specific cultural sensitivity components.

Safe & Smart Tech

MKS Instruments experienced a ransomware attack in February 2023, which temporarily suspended operations, negatively impacted Q1 2023 revenue by an estimated $160 million, and incurred $15 million in net costs for the year.

Personal data of over 6,000 current and former employees, including Social Security numbers, bank account information, health information, and login credentials, may have been exfiltrated. The company sent notification letters to impacted individuals and regulators. A class action lawsuit was filed alleging the company failed to adequately implement data security measures, including not encrypting medical and personal information, and not maintaining sufficient IT controls to prevent or detect unauthorized access to financial reporting systems. The lawsuit also claims the company violated California privacy laws. MKS Instruments determined it had not maintained sufficient IT controls to prevent or detect unauthorized access to its financial reporting systems on a timely basis and failed to implement adequate user authorization and authentication processes. The company has incurred costs to restore systems, enhance cybersecurity measures, and plans to strengthen access requirements and unauthorized access detection. MKS provides an annual training program for employees on safe and secure user practices and data privacy laws. The company evaluates external vendors from a security perspective and requires certain technical thresholds for vendors accessing personal data.

Zero Waste & Sustainable Products

MKS's Atotech division uses product-level Life Cycle Assessments (LCA) based on ISO 14040 standards, indicating circular design considerations in some product lines.

The company has implemented specific product initiatives, such as the EDEN® process chemical technology, which reduces waste, and the Covertron® 600 pretreatment, which eliminates hexavalent chromium and non-PFAS components. MKS generated 3,481 tons of hazardous waste in 2023, but is actively eliminating hazardous substances like Cr(VI) and PFAS in products. MKS has a comprehensive service and repair program with 18 global service centers to maximize product longevity and uptime. The company has committed to setting emission reduction targets in line with the Science Based Targets Initiative (SBTi), with a target to reduce combined Scope 1 and 2 emissions by 42% by 2030 from a 2022 baseline.