SEOUL – Greenpeace East Asia has released a new report assessing decarbonization efforts by 11 of the biggest suppliers to the world’s top consumer electronic brands. In recent years, emissions from the tech supply chain have ballooned, pushing the planet toward climate disaster. Major electronics brands, especially Samsung Electronics and iPhone manufacturer Foxconn, have taken insufficient steps to reduce their emissions.
“It’s encouraging to see that electronics manufacturers are finally recognizing the need for climate action, but progress has been uneven and too slow. Unfortunately, emissions from five of the biggest electronics manufacturers, including Samsung Electronics, Foxconn, and Intel, increased in 2022. Tech companies boast a lot about going green, but when you look at the bigger picture, you see that their supply chains are extremely dirty. Climate action by Samsung Electronics and Foxconn has been remarkably weak,” said Climate and Energy campaigner Xueying Wu.
In 2022, the 11 electronics suppliers consumed more than 111,000 GWh of electricity, [1] exceeding Chile’s annual electricity consumption. [2]
Key Findings from the report:
– The emissions of five major suppliers – Intel, Foxconn, Luxshare Precision, Samsung Electronics, and TSMC – increased in 2022 compared to 2020, in part due to increases in production. Goertek and BOE did not disclose sufficient data to assess their overall emissions.
– The median renewable electricity ratio of the 11 suppliers in the ranking doubled year on year in 2022, to 20%. However, Intel, Samsung Electronics, SK hynix and others continued to rely heavily on low-impact procurement mechanisms, such as renewable energy certificates (RECs), which seldom result in the addition of new renewable energy capacity to the grid.
– Samsung Electronics received the lowest grade of all chipmakers in the ranking, at a D+, due in part to its lack of a 2030 emissions reduction target, slow timeline to transition to 100% renewable energy, and heavy reliance on low-impact renewable electricity sourcing methods.
– Foxconn reported the highest emissions of all final assembly companies in the ranking. In 2022, Foxconn’s emissions exceeded the annual emissions of Iceland. [3] Foxconn’s renewable electricity ratio was just 8% in 2022, compared to 24% for its rival Luxshare Precision.
– Luxshare Precision, a key supplier of Apple and Microsoft, received the highest grade in the ranking and improved by a full grade point year on year. In April 2023, Luxshare Precision pledged to achieve 50% renewable energy by 2025, and in 2022, the company sourced more than 70% of its renewable electricity from high-impact methods. However, Luxshare Precision still lacks a target for 100% renewable energy use by 2030.
To align with the Paris Agreement 1.5°C target, Greenpeace urges that electronics suppliers achieve 100% renewable energy across their supply chains by 2030 through high impact sourcing methods such as Power Purchase Agreements (PPAs) and direct investment in renewable energy.
“Brands like Apple and Microsoft should not promote their products as ‘green,’ when their supply chains are still powered by coal and gas. It’s time for tech suppliers to take initiative and transition to 100% renewable energy by 2030. It is absolutely feasible for every supplier in this ranking to achieve 100% renewable energy within the decade, but the first step is setting ambitious targets,” said Wu
Notes
Report is available here. Media briefing is here.
[1] Goertek did not disclose its 2022 electricity consumption, so its electricity consumption was not included in this figure.
[2] U.S. Energy Information Administration(2023). Data: Electricity. Retrieved October 17, 2023, from https://www.eia.gov/international/data/world/electricity/electricity-consumption?pd=2&p=0000002&u=0&f=A&v=mapbubble&a=-&i=none&vo=value&t=C&g=00000000000000000000000000000000000000000000000001&l=249-ruvvvvvfvtvnvv1vrvvvvfvvvvvvfvvvou20evvvvvvvvvvnvvvs0008&s=315532800000&e=1609459200000&
[3] Ritchie, H., Rosado, P., & Roser, M. (2023, September 28). Greenhouse gas emissions. Our World in Data. Retrieved October 17, 2023. from https://ourworldindata.org/greenhouse-gas-emissions
Media Contacts
Erin Newport, International Communications Officer, Greenpeace East Asia, Taipei, +886 958 026 791, [email protected]
Jungeun Baek, Communications Officer, Greenpeace East Asia, Seoul, +82 10 8857 4093, [email protected]
Jimmy Chen, Communications Officer, Greenpeace East Asia, Taipei, +886 988 035 817, [email protected]