SEMI Semiconductor Climate Consortium and BCG Issue First Insider Report of Semiconductor Value Chain's Carbon Emissions
September 21, 2023 | SEMIEstimated reading time: 2 minutes
The SEMI Semiconductor Climate Consortium (SCC) issued its first report of the semiconductor ecosystem's greenhouse gas (GHG) emissions profile, an in-depth analysis of the semiconductor value chain's carbon footprint and priority-ranked carbon emission sources for the industry to address.
Titled Transparency, Ambition, and Collaboration: Advancing the Climate Agenda of the Semiconductor Value Chain, the report provides the most comprehensive sustainability data available on the semiconductor ecosystem. Key takeaways from the report compiled by Boston Consulting Group (BCG), under the direction of the SCC Baselining, Ambition-Setting and Roadmapping (BAR) Working Group, include:
- Baseline of value chain emissions: Semiconductor devices produced in 2021 have a lifetime CO2e footprint of 500 megatonne (MT) – 16% from supply chain, 21% from manufacturing, and 63% from device use.
- Low-carbon energy is a key lever: Bold and decisive investments in low-carbon energy sources can address more than 80% of industry emissions primarily by reducing the carbon footprint stemming from electricity usage for semiconductor manufacturing and for powering chips in electronics devices.
- Investment and innovation to solve remaining 16%: Emissions from the supply chain and from manufacturing process gases will require considerable research and development to address, necessitating investments now.
- Future manufacturing emissions scenarios: Current government and company commitments will substantially reduce manufacturing emissions, but they are still forecasted to overshoot the carbon budget for the 1.5°C pathway.
- Dilemma of value chain emissions: Digital technologies that require semiconductors play a crucial role in reducing energy use and emissions across industries while simultaneously adding to the overall carbon footprint.
"While the SCC's work on behalf of the industry is just getting started, its sustainability report clearly outlines where chip industry efforts initially should be focused and how we can make the greatest impact for SEMI members and the semiconductor value chain at large," said Mousumi Bhat, Vice President of Sustainability at SEMI. "Thanks to the BCG team for their collaboration on this seminal work."
"For our industry to effectively accelerate climate action, it is crucial that we have a shared view on our industry's baseline carbon footprint, expected trajectory of future emissions, and available improvement levers," said Marijn Vervoorn, BAR co-lead and Director of Sustainability Strategy at ASML. "This report, including its clear view on data gaps and required data quality improvements, provides the foundation for an ambitious industry roadmap showing the tangible action required to achieve both short-term objectives and Net Zero emissions in 2050."
"Our work is far from finished," said Chris Jones, BAR co-lead and Business Development Manager at Edwards. "For the SCC to be successful, we need all three stages of baselining, setting our ambitions (targets) and curating the roadmap of how we will get there. Net Zero is our ultimate goal for SCC members, but the many steps to get there is the detail we are working out."
"The BCG team is proud to be part of this groundbreaking research to build the most comprehensive baseline of the industry's greenhouse gas emissions, helping to focus our Climate Change and Sustainability efforts where they are most impactful," said Ramiro Palma, Ph.D., BCG Managing Director and Partner, Global Semiconductor Practice Area co-lead. "We thank the SCC and its member companies for all their engagement to make this study their own in a step toward a greener future."
Suggested Items
Flex Receives Ericsson 2023 Supplier Sustainability Award
04/30/2024 | FlexEricsson recently awarded Flex with its 2023 Supplier Sustainability Award — the second time since 2021. The award recognizes the extended supply chain benefits from sustainable manufacturing operations in the Flex facility in Tczew, Poland, that runs on 100 percent renewable energy.
Foxconn Net Zero 2050 Targets Validated by SBTi
04/24/2024 | FoxconnHon Hai Technology Group announced its overall science-based net-zero targets have been validated by Science Based Target initiative (SBTi), a move the world’s largest electronics manufacturer and technology service provider hopes will accelerate climate action across its value chain.
GlobalFoundries Commits to Achieving Net Zero Emissions and Carbon-Neutral Power by 2050
04/23/2024 | GlobalFoundriesGlobalFoundries (GF) is furthering its commitment to sustainable operations and fighting climate change with the announcement of two new long-term goals to achieve net-zero greenhouse gas (GHG) emissions and 100% carbon-neutral power by 2050.
Digitalisation and ESG
04/19/2024 | Marina Hornasek-Metzl, AT&SDigitalisation and ESG are prominent and high-priority topics in the global business community. The first focuses on applying technology throughout the value chain to produce faster, smarter, and more desirable business outcomes. The latter emphasises the broader value a business is expected to create for its stakeholders from an environmental, social, and governance perspective.
RTX Signs Largest Renewable Electricity Deal with ENGIE
04/19/2024 | RTXRTX announced an agreement with a subsidiary of ENGIE North America (ENGIE) that will provide 100% renewable electricity to 12 of the company’s Texas facilities.