Greenpeace released the "2023 International Supply Chain Decarbonization Report" yesterday (21st), focusing on the carbon reduction and renewable energy actions of 11 major suppliers of consumer electronics with factories in East Asia. The evaluation targets included three Taiwanese companies: TSMC, Pegatron, and Foxconn. The report pointed out that TSMC and Pegatron's overall ratings have improved, tied for third place in East Asia, while Foxconn has not made any progress and remains in the lower half of the ranking. The overall performance is still not positive enough. Compared with other companies with a median renewable energy share of 20%, domestic companies still have a large gap.
High-power-consuming industries face decarbonization pressure, with renewable energy increasing its share in the electronics supply chain.
Greenpeace East Asia has conducted a two-year survey on the decarbonization of the electronics supply chain. This year, it analyzed the carbon reduction and renewable energy actions of 11 major suppliers of consumer electronics in East Asia and released the "2023 International Supply Chain Decarbonization Report" yesterday (21st). The survey targets include Luxshare Precision and BOE in China, LG and Samsung in South Korea, and three companies in Taiwan: semiconductor leader TSMC, final assembly giant Pegatron, and electronic component giant Foxconn.
Greenpeace analysis shows that most of these 11 companies still rely heavily on fossil fuel electricity. Their median renewable energy share currently stands at 20%, a 10% increase from the previous year (2021). Greenpeace emphasizes that, looking solely at the semiconductor industry within the consumer electronics sector, carbon emissions are projected to reach 86 million tons by 2030. To achieve the goal of limiting global warming to 1.5°C, companies must actively plan for a 100% renewable energy target by 2030, as this is key to their climate performance.
Comparison of the overall evaluation results in 2022 and 2021. Image source: Provided by Greenpeace
TSMC and Pegatron tied for third place in East Asia for climate action, while Hon Hai's rating remained unchanged.
Among the three Taiwanese companies on the list, TSMC and Pegatron's overall climate performance improved compared to the previous year (2021), and they tied for third place with South Korea's SK Hynix. Foxconn's score remained unchanged, ranking at the bottom of the ranking.
Among them, Pegatron's score saw the largest improvement, rising from a D- to a C. Greenpeace explained that Pegatron's total carbon emissions in 2022 were approximately 440,000 tons, a 26.29% decrease from 2020, making it the only company to achieve a reduction. Renewable energy accounted for approximately 19.4% of its energy mix, a 13% increase from the previous year. The company also announced a climate commitment to achieve a 40%-50% renewable energy share by 2030, demonstrating progress in its overall climate action.
TSMC made a slight improvement from C- to C, with total carbon emissions in 2022 estimated at 11.59 million tons, a 22.6% increase from 2020, with renewable energy accounting for approximately 10.4%. Greenpeace stated that the improvement in TSMC's overall score was due to its announcement that it would bring forward its RE100 target from 2050 to 2040.
Foxconn, the only company with unchanged scores, maintained its D+ rating, placing it at the bottom of the rankings. Its carbon emissions reached 5.75 million tons, a 5.13% increase from 2020. Greenpeace criticized Foxconn for its slow climate action, stating that renewable energy accounted for only 8.28% of its energy mix in 2022, with a target of 50% by 2030, making it appear "passive" compared to other companies.
To improve the domestic green electricity market, environmental groups urge companies to use "high-impact" renewable energy.
Fang Junwei, Greenpeace's climate and energy campaign director, noted that the climate performance of three Taiwanese companies remains insufficient, suggesting they accelerate their commitment to 100% renewable energy by 2030. Furthermore, they must move away from the current model of sourcing low-impact renewable energy. For example, TSMC relies on purchasing certificates for nearly 50% of its energy, making actual usage difficult to track and lacking in add-on benefits, rather than simply adding new renewable energy sources.
Renewable energy acquisition models of three Taiwanese companies. Image source: Greenpeace
Fang Junwei suggests that businesses should prioritize "high-impact" renewable energy acquisition models, such as self-generation and consumption, power purchase agreements (PPAs), or direct investment, to achieve their carbon reduction goals. Furthermore, as major consumers of renewable energy, these businesses should play a more active role in communicating with the government and proposing policy initiatives to promote the overall development of the green electricity market.
Source: Environmental Information Centre
