Invisible Emissions – A forecast of tech supply chain emissions and electricity consumption.
The tech supply chain is a fast-growing but hidden source of carbon emissions. Consumer electronics suppliers account for more than three-quarters of the electronics industry’s total emissions. Greenpeace East Asia analyzed electricity consumption, carbon emissions and climate pledges of the biggest electronics suppliers in East Asia and forecast their emissions through 2030.
A forecast of tech supply chain emissions and electricity consumption
Consumer electronics suppliers, including semiconductor manufacturers, display manufacturers and final assemblers, account for more than three-quarters of the electronics industry’s total emissions. East Asia is home to key semiconductor manufacturers, and also has a significant number of display manufacturing and final assembly companies. Among all three industries, semiconductor manufacturing often requires higher electricity consumption.
The semiconductor industry is on track to overshoot the 1.5°C heating limit by more than double, even if companies meet their existing climate commitments.
86 million metric tons of CO₂e emitted per year by 2030
Japan semiconductor manufacturing sector’s historical (2019-2021) and projected (2022-2030) GHG emissions under a “commitments delivered” scenario.
Electricity consumption
Japan semiconductor manufacturing sector’s historical (2019-2021) and projected (2022-2030) electricity consumption
Electricity consumption from Korea’s semiconductor industry is projected to reach 71 TWh by 2030, a 145% increase from 2021 levels.
Samsung Electronics’ emissions will continue to grow through 2030 due to Samsung’s lack of emissions reduction plan, accounting for more than 80% of semiconductor industry emissions in South Korea.
GHG emissions
South Korea semiconductor manufacturing sector’s historical (2019-2021) and projected (2022-2030) GHG emissions
South Korea semiconductor manufacturing sector’s historical (2019-2021) and projected (2022-2030) GHG emissions under a “commitments delivered” scenario.
Electricity consumption
South Korea semiconductor manufacturing sector’s historical (2019-2021) and projected (2022-2030) electricity consumption
Taiwan’s semiconductor manufacturing industry is projected to consume 74 TWh of electricity in 2030, a 236% increase compared to 2021.
Taiwan’s semiconductor manufacturing industry is likely to emit 22 million metric tons of CO₂e in 2027, higher than Alaska’s total emissions in 2020. TSMC is the largest semiconductor manufacturer in Taiwan and a major contributor to the industry’s emissions.
TSMC – Climate risk and action taken by the company
The climate crisis is causing more droughts, floods, and storms. TSMC’s infrastructure is at risk from climate change, especially in Tainan where flooding is likely because the land is below sea level. TSMC has pledged to achieve net zero emissions and 100% renewable energy by 2050. However, in 2021, only 9% of TSMC’s energy was renewable. To address this, TSMC plans to spend 6.8 billion TWD on purchasing renewable energy through RECs and PPAs. Despite being a leader in the industry, TSMC’s efforts to move towards renewable energy are not enough given the company’s large electricity demand.
The climate crisis is causing more droughts, floods, and storms. TSMC’s infrastructure is at risk from climate change, especially in Tainan where flooding is likely because the land is below sea level. TSMC has pledged to achieve net zero emissions and 100% renewable energy by 2050. However, in 2021, only 9% of TSMC’s energy was renewable. To address this, TSMC plans to spend 6.8 billion TWD on purchasing renewable energy through RECs and PPAs. Despite being a leader in the industry, TSMC’s efforts to move towards renewable energy are not enough given the company’s large electricity demand.
– Actively participate in RE site development and communication – Prioritize high-impact RE (self-generation & corporate PPAs. Also prioritize roof-top solar and ways that cause less ecological impact) – Diversify RE sources
Temperature Alignment (scope 1+2)
Samsung has not disclosed a detailed emissions reduction plan for its Scope 1-2.
Transition progress No targets
20232050
Samsung Electronics – Climate risk and action taken by the company
Out of the 22 typhoons in 2021, three affected Korea, which could harm semiconductor production sites like Giheung, Hwaseong, and Pyeongtaek by reducing production quality. Eight of Samsung Electronics’ production sites are also vulnerable to natural disasters like typhoons and cyclones. In 2018, the Pyeongtaek site suffered a 30-minute power outage, resulting in a loss of 50 billion KRW. Samsung Electronics has committed to achieve carbon neutrality and use only renewable energy by 2050, but its goals lack detail and ambition. The company needs more ambitious targets to address the climate risks that it faces.
Out of the 22 typhoons in 2021, three affected Korea, which could harm semiconductor production sites like Giheung, Hwaseong, and Pyeongtaek by reducing production quality. Eight of Samsung Electronics’ production sites are also vulnerable to natural disasters like typhoons and cyclones. In 2018, the Pyeongtaek site suffered a 30-minute power outage, resulting in a loss of 50 billion KRW. Samsung Electronics has committed to achieve carbon neutrality and use only renewable energy by 2050, but its goals lack detail and ambition. The company needs more ambitious targets to address the climate risks that it faces.
– Transition to 100% renewable energy by 2030 and apply it worldwide ASAP – Set 100% renewable energy targets for manufacturing supply chain with economic incentives – Use effective renewable energy procurement methods aligned with locality, additionality, and advocacy – Engage with stakeholders to advocate for renewable energy-friendly policies and investments.
Temperature Alignment (scope 1+2)
Transition progress Behind
20232050
SK Hynix – Climate risk and action taken by the company
SK Hynix’s semiconductor facilities require more maintenance due to severe climate change events. These events can cause product quality issues, which is a significant risk factor. SK Hynix aims to maintain greenhouse gas emissions at 2020 levels by 2030 and achieve net zero by 2050. They have established a carbon management committee and an intermediate goal of achieving over 33% renewable energy usage by 2030. However, their current renewable energy ambition and action are low compared to their industrial position.
SK Hynix’s semiconductor facilities require more maintenance due to severe climate change events. These events can cause product quality issues, which is a significant risk factor. SK Hynix aims to maintain greenhouse gas emissions at 2020 levels by 2030 and achieve net zero by 2050. They have established a carbon management committee and an intermediate goal of achieving over 33% renewable energy usage by 2030. However, their current renewable energy ambition and action are low compared to their industrial position.
– Transition to 100% renewable energy by 2050 and apply it worldwide ASAP – Set 100% renewable energy targets for manufacturing supply chain with economic incentives – Use effective renewable energy procurement methods aligned with locality, additionality, and advocacy – Engage with stakeholders to advocate for renewable energy-friendly policies and investments.
Temperature Alignment (scope 1+2)
Transition progress No Target
20232050
Kioxia – Climate risk and action taken by the company
Kioxia is at risk of factory closures due to climate change-related natural disasters. To combat this, they plan to use 100% renewable energy by 2040. They recently installed large-scale solar power systems at two plants that are expected to reduce carbon dioxide emissions by about 3,200 metric tons per year and generate around 7,600 MWh of electricity annually. However, as of 2022, Kioxia’s renewable energy usage was less than 1%, showing there is room for improvement in their transition towards renewable energy.
Kioxia is at risk of factory closures due to climate change-related natural disasters. To combat this, they plan to use 100% renewable energy by 2040. They recently installed large-scale solar power systems at two plants that are expected to reduce carbon dioxide emissions by about 3,200 metric tons per year and generate around 7,600 MWh of electricity annually. However, as of 2022, Kioxia’s renewable energy usage was less than 1%, showing there is room for improvement in their transition towards renewable energy.
– Aim to save energy by improving efficiency in operations and supply chains – Replace fossil fuel-based electricity with renewable sources that meet certain criteria: additionality, environmental soundness, community benefits, and safety. – Replace other fossil fuel combustion needs with renewable alternatives for heat production and mobility. – Study and work together with and beyond industry groups to reduce greenhouse gas emissions from sources other than fossil fuel combustion. – Engage with governments, utilities, affiliates, and other companies to advocate for renewable energy-friendly policies and investments.
Temperature Alignment (scope 1+2)
Transition progress Behind
20232050
LG Display – Climate risk and action taken by the company
Changes in annual precipitation and drought can have a significant impact on LG Display’s productivity, production, sales, and financial losses, depending on the scale of damage. Additionally, as temperatures increase due to climate change, other facilities such as cleanrooms and freezers require more electricity, leading to additional loads and higher energy costs. With energy costs making up 68% of LG Display’s total management cost, there is a continuing investment risk that needs to be addressed.
Changes in annual precipitation and drought can have a significant impact on LG Display’s productivity, production, sales, and financial losses, depending on the scale of damage. Additionally, as temperatures increase due to climate change, other facilities such as cleanrooms and freezers require more electricity, leading to additional loads and higher energy costs. With energy costs making up 68% of LG Display’s total management cost, there is a continuing investment risk that needs to be addressed.
– Transition to 100% renewable energy by 2030 and apply it worldwide ASAP – Set 100% renewable energy targets for manufacturing supply chain with economic incentives – Use effective renewable energy procurement methods aligned with locality, additionality, and advocacy – Engage with stakeholders to advocate for renewable energy-friendly policies and investments.
Temperature Alignment (scope 1+2)
Samsung Display has not disclosed a detailed emissions reduction plan for its Scope 1-2
Transition progress No Target
20232050
Samsung Display – Climate risk and action taken by the company
Samsung Display’s operational facilities may be severely impacted by climate change-related extreme weather events such as droughts, and increased temperatures may also affect production. In October 2022, the company committed to achieving carbon neutrality and transitioning to 100% renewable energy by 2050. However, Samsung Display has not set specific targets for emissions reduction in the short and medium terms, lacking an ambitious timeline.
Samsung Display’s operational facilities may be severely impacted by climate change-related extreme weather events such as droughts, and increased temperatures may also affect production. In October 2022, the company committed to achieving carbon neutrality and transitioning to 100% renewable energy by 2050. However, Samsung Display has not set specific targets for emissions reduction in the short and medium terms, lacking an ambitious timeline.
– Transition to 100% renewable energy by 2030 and apply it worldwide ASAP – Set 100% renewable energy targets for manufacturing supply chain with economic incentives – Use effective renewable energy procurement methods aligned with locality, additionality, and advocacy – Engage with stakeholders to advocate for renewable energy-friendly policies and investments.
Temperature Alignment (scope 1+2)
BOE has not disclosed a detailed emissions reduction plan for its Scope 1-2
Transition progress No Target
20232050
BOE – Climate risk and action taken by the company
BOE did not disclose the potential operational impact from climate change.
– Assess future corporate renewable energy demand and establish a comprehensive procurement strategy. – Develop a schedule for the 100% renewable energy target with specific timeframes and sourcing methods. – Announce the target and disclose sourcing methods and amounts of renewable energy. – Optimize the timeline and sourcing methods based on stakeholder feedback.
Temperature Alignment (scope 1+2)
Japan Display has not disclosed a detailed emissions reduction plan for its Scope 1-2
Transition progress No Target
20232050
Japan Display – Climate risk and action taken by the company
Production and operation will be suspended in the event of damage caused by extreme weather events. Japan Display has not set any climate or 100% renewable energy targets. Japan Display’s renewable energy ratio is less than 1%.
Production and operation will be suspended in the event of damage caused by extreme weather events. Japan Display has not set any climate or 100% renewable energy targets. Japan Display’s renewable energy ratio is less than 1%.
– Aim to save energy by improving efficiency in operations and supply chains – Replace fossil fuel-based electricity with renewable sources that meet certain criteria: additionality, environmental soundness, community benefits, and safety. – Replace other fossil fuel combustion needs with renewable alternatives for heat production and mobility. – Study and work together with and beyond industry groups to reduce greenhouse gas emissions from sources other than fossil fuel combustion. – Engage with governments, utilities, affiliates, and other companies to advocate for renewable energy-friendly policies and investments.
Temperature Alignment (scope 1+2)
Transition progress Behind
20232050
Luxshare Precision – Climate risk and action taken by the company
Luxshare Precision is aware that climate change-related natural disasters and extreme weather events can affect production and operations. To combat climate change, the company aims to achieve carbon neutrality within its own operations by 2050 and has begun designing emissions reduction goals aligned with a 1.5-degree target. To demonstrate their commitment, Luxshare Precision must prioritize transitioning to 100% renewable energy and set specific targets for renewable energy usage.
Luxshare Precision is aware that climate change-related natural disasters and extreme weather events can affect production and operations. To combat climate change, the company aims to achieve carbon neutrality within its own operations by 2050 and has begun designing emissions reduction goals aligned with a 1.5-degree target. To demonstrate their commitment, Luxshare Precision must prioritize transitioning to 100% renewable energy and set specific targets for renewable energy usage.
– Assess future corporate renewable energy demand and establish a comprehensive procurement strategy. – Develop a schedule for the 100% renewable energy target with specific timeframes and sourcing methods. – Announce the target and disclose sourcing methods and amounts of renewable energy. – Optimize the timeline and sourcing methods based on stakeholder feedback.
Temperature Alignment (scope 1+2)
Honhai has not disclosed a detailed emissions reduction plan for its Scope 1-2
Transition progress No Target
20232050
Honhai – Climate risk and action taken by the company
Hon Hai / Foxconn has subsidiaries worldwide that face different weather conditions, such as earthquakes, floods, and typhoons, leading to equipment damage, operational disruptions, and shipping delays. In 2021, heavy rain in Zhengzhou caused damage to the company’s rooftop photovoltaic area, highlighting the increased operation and maintenance costs related to extreme weather events. To mitigate climate change impacts, Hon Hai / Foxconn aims to achieve carbon neutrality by 2050. However, the company’s current renewable energy ratio is only 5%, and without a specific renewable energy use target, achieving carbon neutrality would not be possible.
Hon Hai / Foxconn has subsidiaries worldwide that face different weather conditions, such as earthquakes, floods, and typhoons, leading to equipment damage, operational disruptions, and shipping delays. In 2021, heavy rain in Zhengzhou caused damage to the company’s rooftop photovoltaic area, highlighting the increased operation and maintenance costs related to extreme weather events. To mitigate climate change impacts, Hon Hai / Foxconn aims to achieve carbon neutrality by 2050. However, the company’s current renewable energy ratio is only 5%, and without a specific renewable energy use target, achieving carbon neutrality would not be possible.
– Actively participate in RE site development and communication – Prioritize high-impact RE (self-generation & corporate PPAs. Also prioritize roof -top solar and ways that cause less ecological impact) – Diversify RE sources
Temperature Alignment (scope 1+2)
Geortek has not disclosed a detailed emissions reduction plan for its Scope 1-2
Transition progress No Target
20232050
Geortek – Climate risk and action taken by the company
Goertek did not disclose the potential operational impact from climate change.
– Assess future corporate renewable energy demand and establish a comprehensive procurement strategy. – Develop a schedule for the 100% renewable energy target with specific timeframes and sourcing methods. – Announce the target and disclose sourcing methods and amounts of renewable energy. – Optimize the timeline and sourcing methods based on stakeholder feedback.
Temperature Alignment (scope 1+2)
Pegatron has not disclosed a detailed emissions reduction plan for its Scope 1-2
Transition progress No Target
20232050
Pegatron – Climate risk and action taken by the company
Although Pegatron cited severe climate events in its CDP disclosure, the company has been reluntant to take steps to address climate change. Pegatron has not issued any carbon neutrality or 100% renewable energy targets. As of 2021, Pegatron did not appear to have taken any actions to transition to renewable energy.
Although Pegatron cited severe climate events in its CDP disclosure, the company has been reluntant to take steps to address climate change. Pegatron has not issued any carbon neutrality or 100% renewable energy targets. As of 2021, Pegatron did not appear to have taken any actions to transition to renewable energy.
– Actively participate in RE site development and communication – Prioritize high-impact RE (self-generation & corporate PPAs. Also prioritize roof-top solar and ways that cause less ecological impact) – Diversify RE sources
Principles to follow for renewable energy procurement
Source renewables that have clear ownership of environmental attributes.
Procure renewable energy locally.
Prioritize newly commissioned renewable energy projects and set a commissioning date limit for old plants when doing procurement.
Adopt sourcing methods that can help increase new renewable energy installed capacity.
Therefore, recommend corporations to prioritize green electricity trading, onsite generation and equity investment, instead of unbundled Renewable Energy Certificates (RECs).
Emissions from the global semiconductor industry are skyrocketing.
Based on projected market size and existing climate commitments from semiconductor manufacturers, the semiconductor manufacturing industry is on track to consume 237 terawatt hours (TWh) of electricity globally in 2030, close to Australia’s 2021 electricity consumption.
The industry is projected to emit 86 million metric tons of carbon dioxide equivalent (CO₂e) in 2030, more than Portugal’s total emissions in 2021.
Zero semiconductor manufacturers, display manufacturers, or final assembly companies included in the study have issued climate commitments that are in line with limiting global warming within 1.5 degrees Celsius.
Electricity consumption by TSMC, Taiwan’s semiconductor manufacturing giant, is on track to grow 267% by 2030, the biggest increase of all semiconductor manufacturers in East Asia.
By 2030, TSMC is on track to consume as much electricity as roughly one-fourth of Taiwan’s population.
In 2021, renewable energy comprised only 9% of TSMC’s total energy usage, far lower than renewable energy usage rates of the chipmaker’s biggest rivals.
Electricity consumption from Taiwan’s semiconductor manufacturing industry as a whole is on track to increase 236% between 2021 and 2030. By 2030, semiconductor manufacturers in Taiwan will consume twice as much electricity as did New Zealand in 2021, according to the forecast. The increase is due in large part to TSMC’s growing electricity consumption. By 2030, about 82% of Taiwan semiconductor manufacturing electricity’s consumption is projected to come from TSMC.
Besides TSMC, only two other companies studied, Luxshare Precision and SK Hynix, are projected to see electricity consumption growth by 2030 that exceeds 200%. Between 2021 and 2030, Luxshare Precision and SK Hynix’s electricity consumption is forecast to increase 270%, and 227%, respectively.
By 2030, Samsung Electronics’ semiconductor manufacturing emissions will exceed those of any tech suppliers studied, at 32 million metric tons of CO₂e per year.
Samsung Electronics is South Korea’s largest semiconductor manufacturer. The company’s electricity consumption from semiconductor manufacturing is projected to reach 55 TWh by 2030, higher than Singapore’s national electricity consumption in 2020. However, Samsung has been slow to transition to renewable energy in South Korea.
In 2022 nearly 75% of Samsung Electronics’ electricity consumption took place in South Korea. However, Samsung has not issued a 2030 climate commitment for its operations inside South Korea.
Emissions from South Korea’s semiconductor manufacturing industry are projected to rise through 2029 due in large part to Samsung Electronics’ continued emissions growth.
South Korea’s semiconductor manufacturing industry is projected to consume 71 TWh of electricity by 2030, a 145% increase from 2021.
Emissions from Samsung Electronics, Samsung Display, and Luxshare Precision are on track to increase through 2030, long after emissions from other companies peak.
Emissions from Samsung Electronics, Samsung Display and Luxshare Precisions are not likely to peak before 2030 because all three companies lack 2030 targets.
It is essential that tech companies issue climate targets that are effective by 2030 to ensure that their emissions peak in line with a 1.5 degree Celsius heating limit.
Renewable Energy Certificates (RECs) accounted for 84% of all renewable energy sourced by the semiconductor manufacturing industry in 2021.
RECs are financial instruments that represent existing renewable energy projects. The purchase of RECs does not add any new renewable energy to the grid. For this reason, RECs are one of the least impactful forms of renewable energy procurement.
Instead of purchasing RECs, semiconductor manufacturers should purchase renewable energy with addictionality through Power Purchase Agreements (PPAs), onsite generation and investment.
In Taiwan, for example, large electricity consumers like TSMC have bought up the majority of existing RECs instead of constructing their own renewable energy infrastructure. TSMC dominates Taiwan’s electricity market and should pursue carbon neutrality by building onsite solar and investing in renewable energy power stations, rather than through the purchase of RECs.
Business as usual: The company fails to take actions to meet its climate commitments
Commitments delivered: The company’s existing commitments are fully delivered
1.5-degree aligned: The company’s commitments and actions are consistent with 1.5 degrees
Manage your cookies preferences
Please select which cookies you are willing to store.
Necessary cookies Always enabled
These cookies will provide you a better experience of our website and help us to improve the performance of Greenpeace.org. You will be able to hide the cookies acceptance banner and use the website features better. We will also use these cookies to collect statistical and anonymised data such as how long users stay on a page or which links are clicked.
In addition to the cookies and technologies described above, we also use other services that will help us to enhance your experience on this website. We also may permit certain third party companies (e.g. Facebook, Google) cookies to help us understand more about our users specific behavior, demographic, and interest data. Those cookies help us to understand how visitors interact with our website (e.g. pages visited) in order to improve visitors experience, operation effectiveness of this platform and our communication strategies.
2050
