Tech firms join forces to tackle emissions in semiconductor supply chains
Intel and Applied Materials are among the first members of a new coalition supporting the adoption of clean energy in semiconductor supply chains, spearheaded by Schneider Electric.
The new ‘Catalyze’ programme is intended to support businesses across the semiconductor value chain to improve efficiencies, procure renewable energy and report on their greenhouse gas emissions.
These interventions come at a time when the semiconductor industry is growing rapidly, and will need to decouple emissions from growth to contribute to the global net-zero transition. The sector is experiencing an 8% compound annual growth rate and demand has been outstripping supply for some time, with only half of industry experts expecting shortages to ease in 2023.
Through ‘Catalyze’, suppliers that may not have the capability to participate in renewable power purchase agreements (PPAs) alone will be able to collaborate to strike collective clean energy deals.
End-user businesses and other experts will also provide suppliers with practical advice on their renewable energy options and with the training they need to understand why transitioning to low-carbon practices is so important.
There will be a focus on markets where PPAs are available in the first instance. A more global expansion is in the works for the longer-term.
As the participants are in the tech space, it is little surprise that they will develop digital platforms for supply chain engagement and emissions data collection and analysis. The aim is to engage thousands of suppliers.
Intel’s chief global operations officer Keyvan Esfarjani said: “Ultimately, we want our entire value chain to achieve net-zero as we continue to deliver leading technologies that power our digital world.
“Switching to renewable energy is an important step to reduce greenhouse gas emissions. Intel has achieved 93% renewable electricity in our global operations and remains committed to reaching 100% by 2030.”
CDP estimates that, on average, a large multinational will generate 11.4 times more emissions indirectly than in its operation. As such, supply chain emissions are becoming an increasingly important part of any credible corporate climate action strategy.