Greenpeace released the "2023 International Supply Chain Decarbonization Report" yesterday (21st), targeting the carbon reduction and renewable energy actions of 11 important suppliers in the consumer electronics industry with factories in East Asia. The evaluation targets include TSMC, Pegatron and Hon Hai, three Taiwanese companies. The report points out that TSMC and Pegatron have improved their overall ratings and are tied for third place in East Asia, while Hon Hai has made no progress to maintain its ranking at the bottom. The overall performance is still not positive enough. Compared with other companies, the median share of renewable energy is 20%, and there is still a large gap among domestic companies.
High power-consuming industries face decarbonization pressure, and the proportion of renewable energy in the electronics supply chain increases
Greenpeace East Asia Office has launched a survey on the decarbonization of the electronics supply chain for two consecutive years. This year, it analyzed the carbon reduction and renewable energy actions of 11 important suppliers in the consumer electronics industry with factories in East Asia. It was released yesterday (21st) "2023 International Supply Chain Decarbonization Report". The survey targets include China's Luxshare Precision and BOE, and South Korea's LG and Samsung. Taiwan has three companies: semiconductor leader TSMC, final assembly major Pegatron, and electronic components major Hon Hai.
Greenpeace analysis shows that most of these 11 companies still rely heavily on fossil fuel power. The current median proportion of renewable energy among these companies is 20%, which is an increase of approximately 10% compared with the previous year (2021). Greenpeace emphasizes that looking at the semiconductor industry in the consumer electronics industry alone, carbon emissions are expected to reach 86 million tons in 2030. To achieve the goal of curbing global warming to 1.5°C, companies should actively plan for 100% renewable energy goals in 2030. is the key to corporate climate performance.
Comparison of the overall evaluation results in 2022 and 2021. Image source: provided by Greenpeace
TSMC and Pegatron are tied for third place in East Asia in terms of climate action, but Hon Hai’s score has not improved.
The overall climate performance of the three Taiwanese companies on the list, TSMC and Pegatron, has improved compared with the previous year (2021), and they are tied for third place with South Korea's SK Hynix. Hon Hai's score remains unchanged, ranking at the bottom part.
Among them, Pegatron's score improved from D- last year to C, which is the biggest change. Greenpeace stated that Pegatron's total carbon emissions in 2022 will be approximately 440,000 tons, a decrease of 26.29% compared with 2020. It is the only company that has reduced carbon emissions. Recycling Energy accounted for approximately 19.4%, an increase of approximately 13% compared with the previous year. It also announced a climate commitment to achieve the renewable energy share target of 40%-50% in 2030, and overall climate action has made progress.
TSMC has slightly improved from C- to C. Total carbon emissions in 2022 will be approximately 11.59 million tons, an increase of 22.6% from 2020, and renewable energy will account for approximately 10.4%. Greenpeace said that the overall score improved because TSMC announced that it would advance its RE100 target from 2050 to 2040.
Hon Hai, the only company whose score has not changed, remains at D+, ranking at the bottom of the rankings. Carbon emissions were 5.75 million tons, an increase of 5.13% compared with 2020. Greenpeace criticizes Hon Hai for its slow climate action. The proportion of renewable energy in 2022 is only 8.28%, and the renewable energy target is limited to reaching 50% in 2030. Compared with other companies, it appears "negative".
Environmental group to improve domestic green electricity market calls on companies to use "high-impact" renewable energy
Fang Junwei, director of Greenpeace's climate and energy project, pointed out that the climate performance of the three domestic companies is still not active enough and suggested accelerating their commitment to use 100% renewable energy in 2030. And it must break away from the current low-impact renewable energy acquisition model. For example, nearly 50% of TSMC relies on purchase certificates, which makes it difficult to track actual usage and lacks additivity. It does not add additional new renewable energy.
Renewable energy acquisition models of three companies in Taiwan. Image source: provided by Greenpeace
Fang Junwei suggested that companies should give priority to "high-impact" renewable energy acquisition models, such as self-consumption, power purchase agreements (PPA) or direct investment, in order to actually achieve carbon reduction goals. At the same time, as major demanders of renewable energy, these companies should play a more active role in communicating with the government and proposing policy initiatives to promote the development of the overall green electricity market.
Source: Environmental Information Center
