Texas Instruments

2012 Corporate Citizenship Report


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Risks and opportunities

Risks | Opportunities

TI's environmental, safety and health (ESH) management system identifies, evaluates and tracks applicable legal and other ESH-related standards or requirements for its operations, products and services, including those related to climate change.

ESH review teams comprising environmental, safety and industrial hygiene specialists maintain this process. The specialists on these teams are responsible for continually identifying, tracking and communicating changes regarding ESH operational and product requirements.

Our business units and government relations organization monitor government initiatives and incentives, as well as business opportunities, so that we can apply our innovative technologies to enable energy savings and new energy sources.

Risks

Although not currently believed to be material, we are exposed to certain regulatory and physical risks associated with climate change. We closely track global energy and environmental concerns and are committed to being part of the solution. In addition, we work through associations to provide context and perspective on the potential impact of legislative and regulatory proposals.

Regulatory
Compliance is the baseline operating standard at all of our sites worldwide. Regulations addressing greenhouse gas (GHG) emissions are in place or are being developed in many markets where we operate.

For example, we are required to comply with two GHG rules set by the U.S. Environmental Protection Agency (EPA) that went into effect beginning in 2011:
  • Preconstruction permitting for new or modified facilities that will emit "major source" levels of GHG emissions. Known as the "Tailoring Rule" the EPA's rules require stationary sources, like TI's U.S. manufacturing facilities, to obtain permits for projects projected to emit GHGs above certain thresholds. New or modified facilities must incorporate the best-available GHG emission-control technology into the project. The Tailoring Rule also requires major sources of GHG emissions to either add GHG permit requirements to existing Title V operating permits or obtain new Title V operating permits.
  • Mandatory reporting of GHG emissions from combustion sources. The EPA requires the semiconductor industry (among other industries) to measure and report annual fluorinated GHG emissions (such as sulfur hexafluoride, perfluorocompounds and hydrochlorofluorocarbons) as well as GHG emissions from combustion sources.
Physical
Although not currently believed to be material, TI could potentially be exposed to certain physical risks that may be associated with climate change, such as typhoons or other extreme weather events. In any natural or man-made disaster, our priorities are to protect our people, assets, revenue and reputation. In addition, our technologies can aid relief and recovery efforts.

Should any of our global sites be impacted by extreme weather events, we are prepared. Each site worldwide has a business continuity program detailing an effective and timely response to any natural or man-made disaster. The program focuses on risk assessment, preparedness, incident response and business recovery, and helps ensure business reliability for our customers and safety for our workers and communities.

Opportunities

Governments and private entities in many of the major markets where we operate are taking significant action to increase energy efficiency and the availability of renewable energy, which helps reduce greenhouse gas (GHG) emissions. These markets include, but are not limited to, the U.S., China, the European Union, India and Japan.

As a result, we anticipate opportunity for growth by providing technologies that will enable our customers to reduce power use and subsequent GHG emissions. Potential customers include electricity providers, distributors, manufacturers of white goods (appliances) and the transportation industry, among many others.

TI is well-positioned to respond to these needs as an industry leader in power-management and ultra-low-power solutions. For example, our power-management devices and microcontrollers reduce energy consumption in electronics, industrial equipment appliances, PCs and automobiles, and enable smarter homes, buildings and electric grids.

Our technology is also helping harness often untapped renewable energy sources – wind, solar, vibration and even human body heat – to reduce the world's reliance on fossil fuels and promote the use of alternative, smarter sources.

We invest in research and development and collaborate with partners to develop new energy technologies. We have also opened on-site centers such the Solar Energy Systems Lab and LED Lab to develop breakthrough innovations in this space.

We also are designing our own products to be more efficient. For example:

  • Global energy demand is expected to double by 2050, which calls for a more efficient and reliable power infrastructure. Smart grids, enabled by TI technology, are reducing costs, saving energy, and improving how energy demand is monitored and managed. Utilities can use smart electrical meters to adjust (with permission) thermostats, appliance usage and HVAC settings in homes and businesses to avoid rolling brownouts or having to charge peak rates. This reduces climate impacts as well.
  • Industrialized and emerging countries are seeking ways to reduce carbon dioxide emissions from automobiles to support global climate-change initiatives. Our analog and embedded processing products allow hybrid and electric vehicles to reduce these impacts.
Regulatory
With the continued legislative and regulatory focus on developing new sources of power, while reducing energy consumption and emissions in coming years, our business opportunities in these areas (both near and long term) may likely escalate.

Physical
In the event of extreme weather events or other potential physical changes associated with climate change, TI technology can aid response and relief efforts. This includes helping customers develop emergency response communications or the latest medical equipment.