TSMC holds a small group carbon management workshop to assist suppliers in building inventory capabilities.
TSMC holds a small group carbon management workshop to assist suppliers in building inventory capabilities.

TSMC Launches Carbon Inventory Workshops to Enhance Suppliers’ Sustainability

Willy Chen
Price Ho
Larry Sun

TSMC is committed to its environmentally and socially responsible operating model. In addition to reaching the goal of net zero emissions by 2050 and publishing its Task Force on Climate-related Financial Disclosures (TCFD) Report, TSMC is also actively driving the development of a sustainable semiconductor supply chain through its of building a low-carbon supply chain, setting in the sustainability report and tracking related reduction results. In 2022, TSMC introduced workshops dedicated to "greenhouse gas inventory" and "product carbon footprint inventory" for suppliers who have not yet obtained the ISO 14064-1 greenhouse gas verification and whose annual electricity consumption is greater than 5 million kilowatt-hours. In the workshops, expert lecturers guide suppliers through the complicated inventory process to correctly identify various carbon emission sources for data calculations, which, in turn, helps suppliers make improvements to achieve their reduction goals. As of January 2023, a total of 71 personnel from 47 suppliers have participated in the workshops to empower their low-carbon operation management.

TSMC’s Four Strategies of Low-carbon Supply Chain Management

Hands-on Workshops Designed to Build Suppliers’ Carbon Inventory Capabilities

Carbon emissions generated by the supply chain is an important concern for TSMC. In an effort to drive sustainable development together, TSMC assists suppliers through which review carbon emissions as well as water and electricity usage. As some suppliers do not have the ability to perform accurate carbon accounting, information collection, and inventory management, TSMC’s Corporate Environmental Safety and Health Division collaborates with external experts to create small-scale workshops which focus on suppliers’ carbon emissions and product carbon footprints. The lecturers guide suppliers through the GHG inventory forms to build up their inventory capabilities and improve data quality.

TSMC Supplier Carbon Accounting Workshop

Accurate carbon data management is the cornerstone of carbon reduction. TSMC helps suppliers understand the purpose and common goals of carbon management through these workshops, and solves problems encountered by suppliers through real-time guidance. It is worth promoting and learning from.

- Kevin Huang, Senior Deputy General Manager and Deputy Chief Sustainability Officer of KINSUS Technology Co., Ltd.

Thanks to TSMC for organizing the product carbon footprint inventory workshop, not only leading suppliers to conduct inventory, but also facilitating interactions among companies to improve data quality.

- Ting Huhsiang, Manager of Labor Safety and Health department of KINIK Co., Ltd.

Diverse Approaches to Strengthen Green Action and Advance Low-carbon Management

TSMC has enhanced the carbon management of the supply chain through multiple approaches. In addition to cultivating suppliers' carbon inventory capabilities through workshops, TSMC has been collaborating with the Industrial Development Bureau of the Ministry of Economic Affairs since 2021 to promote energy-saving and carbon-reduction programs. After participating in these programs, 18 suppliers saved a total of 2.9 million kWh of electricity and reduced 1,400 metric tons of carbon in 2022. Six additional suppliers joined the programs in 2022 and identified energy conservation opportunities through document reviews and on-site inspections, which culminated in 22 energy conservation proposals. In 2023, TSMC will continue to drive new developments and hope that by enhancing suppliers' energy-saving and carbon reduction capabilities and performance for making a concrete contribution to climate change mitigation.

TSMC Supply Chain Energy Conservation Opportunities Identified by On-site Inspections

Creating a green and low-carbon supply chain is an important key for TSMC to enhance the sustainability of the semiconductor industry. In addition to holding regular small group carbon inventory workshops with hands-on learning, TSMC also launched the "Enterprise Greenhouse Gas Inventory" training course through the TSMC Supplier Sustainability Academy. The online course offers an introduction to GHG inventory and calculation methods and is now a compulsory course for in 2023. It deepens the sustainable practices of the supply chain to create a better shared future.