In line with its commitment to net zero emissions by 2050, TSMC is committed to practicing climate risk control and mitigation. In addition to being the world's first semiconductor company to join the RE100, TSMC is also actively developing a green and sustainable supply chain, promoting suppliers to implement low-carbon management in five directions, and setting long-term goals to regularly review the results and disclose them in the sustainability report. In April 2023, TSMC announced the first joint procurement renewable energy program in Taiwan, and signed a long-term renewable energy PPA (Power Purchase Agreement) with ARK Power with a total 1 TWh annually or a total of 20 TWh for 20 years, of which 500GWh was subscribed by TSMC every year, and another 500 GWh was invited to jointly subscribe by TSMC local supply chains. It is expected that 500,000 metric tons of CO2 emissions will be reduced annually in the future, strengthening the carbon reduction action of local supply chains.
Matchmaking Suppliers + Renewable Energy Developers to Create a Green Win-win Situation
Promoting a green and low-carbon supply chain is an important strategy for TSMC to implement a responsible supply chain. In order to encourage suppliers to cultivate sustainable development, TSMC not only played a leading role by expanding the use of renewable energy, but also further launched the supply chain renewable energy procurement program. Suppliers who intend to purchase renewable energy, will be provided complete services from electricity consumption assessment to power transfer through the joint procurement model. They are also promised a long-term procurement of 20 years to strive for stable electricity prices, which not only lowers the threshold for suppliers to adopt renewable energy, but also improves business matching opportunities for renewable energy developers to promote the development of the domestic renewable energy industry.
Adhering to the belief of co-existing and co-prospering with the environment, TSMC implements low-carbon manufacturing and using renewable energy. Through this innovative joint procurement model for renewable energy, TSMC joins hands with industry partners to promote a sustainable low-carbon semiconductor supply chain, in order to fulfill our commitment to reach the goal of net zero emissions by 2050.
TSMC considers improving the sustainability of the semiconductor industry as a key part of ESG. Through the joint procurement program, it helps suppliers expand their renewable energy sources, deepen their sustainable operation management capabilities, and jointly continue to move towards the goal of a low-carbon semiconductor supply chain.
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