tsmc aims for net-zero by 2050, commits to science based targets

2025-04-22 tsmc

Hsinchu, Tuesday, 22 April 2025.
On Earth Day 2025, TSMC committed to the Science Based Targets initiative. TSMC plans to peak carbon emissions in 2025. It wants to reduce emissions to 2020 levels by 2030. The company plans to use 60% renewable energy for global operations by 2030. TSMC aims to achieve 100% renewable energy by 2040. TSMC’s overseas operations already reached net-zero emissions for scopes 1 and 2 in 2022. By 2030, each unit of electricity TSMC uses could save 6.8 units globally.

commitment to carbon neutrality

TSMC’s commitment involves reducing scope 1, 2, and 3 emissions, aligning with the SBTi Corporate Net-Zero Standard within the next decade, using 2025 as the baseline [1]. TSMC’s Chairman Dr. C.C. Wei emphasized that corporate engagement is crucial for environmental commitments and low-carbon transformation [1]. TSMC is collaborating with supply chain partners to advance green initiatives and develop energy-saving technologies to achieve net-zero emissions by 2050 [1]. Over 50 suppliers have signed the TSMC Greenhouse Gas Reduction, Emissions Elimination & Neutrality (GREEN) Agreement, representing approximately 90% of TSMC’s supply chain carbon emissions [1][2].

renewable energy initiatives

To reduce scope 2 indirect energy emissions, TSMC joined the RE100 initiative, aiming for 100% renewable energy consumption [1]. In 2023, TSMC accelerated its RE100 target from 2050 to 2040 [1]. In 2024, renewable energy usage surpassed 14% across the company [1][5]. TSMC has also achieved 100% renewable energy consumption in global offices and overseas sites [1][5]. The company is steadily progressing toward its RE60 medium-term target by 2030 [1][5].

supply chain carbon reduction

To cut scope 3 emissions, TSMC initiated a 20-year joint procurement agreement for 20,000 GWh of renewable energy [1]. This secures stable prices for suppliers and subsidiaries, lowering adoption barriers [1]. In 2024, TSMC launched a supply chain carbon reduction subsidy project [1]. This project funds local Tier-1 raw material suppliers for equipment upgrades to enhance emission reduction, aiming to reduce 450,000 metric tons of carbon emissions [1][2][3]. This reduction equals the annual carbon sequestration of 45,000 hectares of forest [1][2][3].

leed certifications and green agreements

TSMC has earned 53 LEED Gold or higher certifications, leading the semiconductor industry in certified building area [1][3]. TSMC’s overseas operations achieved net-zero emissions for scopes 1 and 2 starting in 2022 [1][3]. Starting in 2025, TSMC is partnering with major emission contributors to sign the TSMC Greenhouse Gas Reduction, Emissions Elimination & Neutrality (GREEN) Agreement for suppliers [1]. The goal is to achieve RE85 for production in Taiwan and RE100 for overseas production of products supplied to TSMC by 2030 [1].

market impact and sustainability

TSMC’s commitment to SBTi could positively influence its stock (TSM:NYSE) by attracting environmentally conscious investors [GPT]. Enhanced ESG credentials may strengthen TSMC’s market leadership [GPT]. These initiatives could improve its reputation and long-term sustainability [GPT]. Google has also initiated Taiwan’s first corporate geothermal deal, reflecting a broader trend toward renewable energy adoption in the region [7]. Meanwhile, other companies, like Apple, are also announcing significant carbon cuts [7].

Bronnen

carbon reduction sustainability