At WD, sustainability is not a side initiative, it is fundamental to how we innovate, operate, and grow.

As we release our FY2025 Annual Sustainability Report, we are doing so at a moment of profound transformation. The rapid acceleration of AI is reshaping how data is created, stored, and activated across every industry. That growth brings extraordinary opportunity, but it also raises the stakes. The infrastructure behind AI must not only scale, it should do so responsibly.

Leading with purpose in a data-driven world

WD plays a critical role in the global data ecosystem, delivering scalable storage solutions that power hyperscalers, enterprises, and cloud providers. But leadership in a data driven world requires more than enabling performance at scale. It demands accountability, transparency, and a long term view of how our decisions shape the broader ecosystem.

Our approach to sustainability is grounded in three pillars: environmental stewardship, stakeholder empowerment, and responsible business practices. These are not parallel efforts. They are deeply interconnected priorities that shape how we make decisions, invest in innovation, and measure success.

As the demands of AI continue to grow, this integrated approach allows us to move with both speed and intention, ensuring that breakthrough innovation is guided by responsible, long-term impact.

Advancing environmental stewardship

Driving sustainability requires both ambition and discipline. Over the past year, we have continued to expand our environmental commitments while delivering measurable progress against our goals.

We sourced 66% carbon-free energy across our global operations, reflecting sustained investment in cleaner energy sources and more efficient infrastructure. At the same time, we reduced emissions intensity associated with the use of our products by 31% per petabyte compared to our FY2020 baseline—an important milestone as customers increasingly rely on our technologies to power data-intensive workloads and support their own climate targets.

We are also rethinking how materials are used and recovered across the lifecycle of our products. Through our Advanced Recovery and Rare Earth Material Capture program, developed in partnership with Microsoft and others, we are recovering critical materials from end-of-life hard drives that would historically have been lost to waste streams. In fact, in the pilot, 90% of rare earth minerals in processed materials were captured, showing the potential to capture more value. This work represents a meaningful step forward in advancing circularity within our industry.

Recognition from organizations such as CDP and Newsweek reflects the progress we are making, but more importantly, it reinforces the importance of transparency and accountability in how that progress is measured.

In the era of AI, the need for more efficient data infrastructure continues to rise. This is where we see one of our greatest opportunities to lead in designing storage solutions that not only meet performance demands, but do so with a smaller environmental footprint.

Empowering our global ecosystem

Sustainability is ultimately driven by people. It is shaped by how individuals work, how organizations collaborate, and how entire ecosystems align around shared goals.

As AI becomes more embedded in how work gets done, we are focused on equipping our employees with the tools and skills needed to use these technologies effectively and responsibly. This includes enabling more efficient workflows, accelerating productivity, and fostering a culture of continuous learning.

Our commitment extends beyond our own workforce. Across our supply chain, we are engaging deeply with partners to drive progress on the issues that matter most, including decarbonization, human rights, and responsible sourcing. By working with 100% of our targeted suppliers on these priorities, we are helping to create a more resilient and accountable ecosystem.

These partnerships are essential. They allow us to scale impact in ways that no single organization could achieve alone.

Operating as a responsible business

At the foundation of our sustainability efforts is a commitment to operating with integrity. Trust is built through consistent action, clear standards, and a culture of accountability. This commitment is rooted in our core values—putting customers first, delivering results, fostering connection, pursuing excellence, and driving innovation—which guide how we make decisions and show up every day.

We continue to embed ethical practices across every level of the organization, supported by strong governance and comprehensive training. Our annual ethics and compliance program receives full participation across our global workforce, reinforcing the importance of principled decision-making in everything we do.

This commitment has been recognized externally, including WD being named one of the World’s Most Ethical Companies for the eighth consecutive year. While we are proud of this recognition, we see it not as an endpoint but as a reflection of the systems and culture we have built and are committed to maintaining.

As AI and advanced manufacturing become a key part of our products and operations, responsible governance takes on even greater importance. We are deeply committed to responsible, ethical, and secure development, deployment, and usage of AI across our business. This ensures that innovation is paired with oversight, and that progress does not come at the expense of trust.

Shaping what comes next

Sustainability is not a fixed goal. It is an ongoing process of adapting, improving, and responding to a changing world.

The growth of AI will continue to drive unprecedented demand for data infrastructure. Meeting that demand responsibly will require new thinking, deeper collaboration, and a continued commitment to innovation.

At WD, we see this as a defining opportunity. By advancing smarter, more efficient ways to store and manage data, we are helping to shape a future that balances technological progress with environmental and societal responsibility.

Because the future of data is not just bigger. It is more intelligent, more efficient, and more sustainable.