Objective
The overall objective is for STMicroelectronics to achieve Net Zero Carbon (NZC) emissions across Scopes 1, 2 & 3 by 2050 at the latest.
The interim objective is for the company to set targets validated by the Science Based Targets initiative (SBTi) and to focus on improving transparency on Scope 3 emissions data.
Background
STMicroelectronics has set an ambitious goal of achieving carbon neutrality by 2027 for scope 1 and scope 2 emissions and partially for scope 3. The company has developed interim targets to reduce emissions and has recognized the importance of data collection regarding its supply chain. Scope 3 emissions reporting currently only cover the transportation of goods and employee commuting. While, STM acknowledges the challenges it faces in collecting comprehensive data from its approximately 6,000 suppliers, which vary in their maturity regarding sustainability reporting, it has nonetheless resisted including these emissions in their targets. The company will therefore only include the transportation of goods and employee commuting in its current targets.
Actions
WHEB engaged in dialogue with STM to discuss the company's progress regarding scope 3 data collection and the potential announcement of a NZC target encompassing all three emission scopes (scope 1, scope 2, and scope 3). We also sought to understand the company’s intermediary targets for reducing scope 1 and scope 2 emissions by 2025, as certified by the Science Based Targets initiative (SBTi).
Objective
The overall objective is for STMicroelectronics to achieve Net Zero Carbon (NZC) emissions across Scopes 1, 2 & 3 by 2050 at the latest.
The interim objective is for the company to set targets validated by the Science Based Targets initiative (SBTi) and to focus on improving transparency on Scope 3 emissions data.
Background
STMicroelectronics has set an ambitious goal of achieving carbon neutrality by 2027 for scope 1 and scope 2 emissions and partially for scope 3. The company has developed interim targets to reduce emissions and has recognized the importance of data collection regarding its supply chain. Scope 3 emissions reporting currently only cover the transportation of goods and employee commuting. While, STM acknowledges the challenges it faces in collecting comprehensive data from its approximately 6,000 suppliers, which vary in their maturity regarding sustainability reporting, it has nonetheless resisted including these emissions in their targets. The company will therefore only include the transportation of goods and employee commuting in its current targets.
Actions
WHEB engaged in dialogue with STM to discuss the company's progress regarding scope 3 data collection and the potential announcement of a NZC target encompassing all three emission scopes (scope 1, scope 2, and scope 3). We also sought to understand the company’s intermediary targets for reducing scope 1 and scope 2 emissions by 2025, as certified by the Science Based Targets initiative (SBTi).
Outcomes
STM outlined its commitment to carbon neutrality, targeting 2027 for scope 1 and scope 2 emissions, while also addressing scope 3 emissions to some extent. The company noted that it is actively assessing challenges within its supply chain, especially upstream, and is working to expand its scope 3 data collection beyond its current limitations. STM indicated it has around 6,000 to 7,000 suppliers, varying in their maturity regarding sustainability reporting, which complicates comprehensive data collection. It did however confirm that there are no plans to commit to SBTi targets covering scope 3 emissions.
In terms of emissions reduction strategies, it plans to install a perfluorocarbon (PFC) abatement system to significantly reduce scope 1 emissions. The company also aims to decrease energy consumption per unit of production by 20% from 2016 to 2025 and is currently on track with a 17% reduction achieved. Furthermore, STM is progressing toward a 100% renewable energy target by 2027, with 71% of its electricity currently sourced from renewables, supported by Power Purchase Agreements (PPAs) with wind and solar utilities.
STM also discussed its approach to managing emissions from transportation and mentioned that while it plans to implement carbon offsets for unavoidable emissions, it has no current offsetting projects included in its reports. Overall, the company emphasised its commitment to transparency in reporting and stated that it would only disclose data that meets robust standards, promising to update its long-term goals regularly.