TI has been following the scientific debate over global warming for many years. Our expertise is not in atmospheric science, and we are not in a position to interpret the debate on global climate change. However, TI recognizes that global climate change, or global warming, is an issue that requires higher levels of worldwide concern and commitment to action.

To minimize our contributions to climate change, we participate in a perfluorocarbon (PFC) voluntary reduction program, work to reduce energy use, replace (or more efficiently use) certain chemicals, and encourage clean transportation methods.

TI and the U.S. semiconductor industry are working proactively to reduce greenhouse gas emissions in a rational manner that maintains a sound economy and is in line with the industry's commitment to global business sustainability. According to the U.S. Environmental Protection Agency (EPA), the semiconductor industry is responsible for an estimated 0.02 percent of greenhouse gas emissions in the U.S. Although these emissions are relatively minimal, TI is not complacent.

TI's Environmental Policy and Principles guide us in our endeavor to operate sustainably, from producing conscientiously designed products to meeting and exceeding international environmental regulatory requirements.

We recognize that TI can't embrace every climate change mitigation effort and must weigh each greenhouse gas reduction decision by balancing sustainability progress against practical cost considerations. That's why we focus our efforts on reducing GHG emissions to two primary areas: PFC emissions and energy use.

Reducing contributions

TI maintains robust programs that work to reduce major contributions to climate change, with teams dedicated to managing and measuring their success. We leverage external expertise and share our own knowledge with government and industry entities, taking seriously our responsibility to ensure a healthier planet.

PFC emissions

Perfluorocarbon (PFC) emissions, which contribute to climate change, derive from a variety of chemicals essential to current semiconductor manufacturing methods. The industry collectively recognizes that it is a significant challenge to find technically feasible alternatives that reduce PFC emissions.

TI helped shape the World Semiconductor Council's carbon reduction proposal, which calls for the semiconductor industry to collectively reduce PFC emissions 10 percent from 1995 baseline levels (for the U.S.) by 2010.

Additionally, as part of a voluntary Memorandum of Understanding our industry signed with the EPA, TI is among those companies annually reporting PFC emissions to the EPA. We also report PFC emissions to the World Semiconductor Council and Carbon Disclosure Project. In addition, TI led an initiative that influenced industry suppliers to use alternative chemical processes that reduce PFCs.

By 2007, TI had reduced global PFC emissions from their peak 1999 levels by 48 percent, which takes into account adjustments for production growth.

Energy

The production of energy generates carbon dioxide (CO₂), a contributor to greenhouse gas. TI began pursuing energy conservation in the mid-1970s and fundamentally shifted our energy use policies to align with climate change objectives in 2002. Our energy conservation program was formally linked with our climate change strategy in 2007.

Because manufacturing equipment uses the most energy in our operations, TI has made numerous amendments to our equipment-use protocols to promote efficiency and reduce energy use where feasible. In recent years, chiller optimization has saved thousands of megawatt-hours of energy, and the recovery of heat from water-cooling loops to heat other building air has conserved a significantly higher quantity of power.

Additional energy-limiting measures include using waste heat from utility plants to heat incoming water, replacing lower efficiency vacuum pumps and replacing compressor-style chillers. Even our conference rooms are retrofitted with light timers and sensors that turn off when no movement is detected.

In addition, every new facility TI constructs will be built at a minimum to achieve LEED certification, enabling built-in energy efficiency. TI has also committed to achieving LEED certification at all major existing buildings globally by 2011, which will bring new energy-efficiency technologies to older buildings and further reduce GHG emissions.

In 2007, TI completed 37 conservation projects to save water and energy, with an average payback of 1.3 years and utility cost savings of $3.5 million per year.

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2007 performance

TI advanced our climate change strategy in 2007 with the development of our first carbon footprint and timeline for additional emission reduction activities over the next three years. This will include the expansion of our CO₂ modeling efforts and continued participation in the EPA PFC voluntary program as well as other voluntary programs, with attention paid to both direct and indirect sources of CO₂.

TI's carbon footprint, which contained PFC emissions and other contributors related to energy use, was 2 million metric tons in 2007.

Moving forward, TI will continue identifying ways to reduce our contribution to climate change. In 2008, we will work diligently to understand relevant regulations currently being developed to ensure compliance with new national accounting requirements for CO₂ emissions.

Although the U.S. was initially hesitant to embrace Kyoto Protocol standards, an international framework of accounting standards is beginning to develop. The Kyoto Protocol targets 2012 as a deadline for additional CO₂ reduction. TI will comply with these accounting standards in the regions where we operate.

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