Results | Looking ahead
Over the past several years, TI and the semiconductor industry have worked to reduce and report greenhouse gas (GHG) emissions in response to global concerns about climate change.
In 2013, we played an instrumental role in working with the U.S. Environmental Protection Agency (EPA) to improve its calculation and monitoring methodologies for semiconductor manufacturers when complying with the EPA's mandatory GHG reporting rule.
TI, along with the Semiconductor Industry Association, SEMATECH and other semiconductor companies, spent the last few years collecting data that validates alternative accounting methods – methods to which the EPA agreed. Not only will the revised methods result in more accurate calculations of GHGs, they significantly increase the efficiency of measurement and reporting.
In Europe, the European Commission proposed a fluorinated GHG regulation that would reduce the use of hydrofluorocarbons (HFCs), primarily in the refrigeration and air conditioning industries. The commission exempted semiconductor companies from this regulation in 2013 after the European Semiconductor Industry Association demonstrated that semiconductor components cannot be manufactured without using small amounts of HFCs, and that our industry is taking steps to help reduce GHG emissions through our perfluorocompounds (PFC) emission reduction program.
TI and other World Semiconductor Council members extended their PFC reduction commitment by setting a goal to reduce normalized PFC emissions by 30 percent by 2020 (per amount of product produced based on surface area) from a 2010 baseline. In 2013, TI also continued work toward a broader internal goal to reduce GHG emissions required to design and manufacture a chip (an average or representative TI product) by 30 percent by 2015 (from a 2010 baseline).
Also during the year, TI continued disclosing annual European air-travel emissions in compliance with the European Union (EU) Emissions Trading System. We opened an Aircraft Operators Holding Account for the purpose of trading allowances (carbon credits) to offset emissions generated by corporate aircraft in Europe.
In addition, we continued to implement energy-efficiency projects and other initiatives worldwide that reduced GHG emissions. TI's Test Technology Product Engineering group implemented one such initiative, using air chillers instead of those cooled by fluorinated gases as part of its quality testing process. The switch reduced chiller-emitted GHGs by 86 percent and is saving TI more than $40,000 annually in coolant costs.
In 2013, we:
- Reduced TI's carbon footprint from 2.42 million metric tons carbon dioxide equivalent (MMTCO2e) in 2012 to 2.33 MMTCO2e, a 4 percent annual decrease. Approximately 59 percent of our footprint was the result of purchased electricity.
- Reduced our normalized GHG emissions produced per chip by 8 percent year on year and by 5 percent from a 2010 baseline.
- Implemented 112 energy-efficiency projects worldwide that prevented 34,000 metric tons of carbon dioxide from entering the atmosphere.
- Shut down operations at two older, less-efficient fabrication sites in Japan and Texas that used higher-emitting PFC processes. We expect the completion of the shutdowns will contribute to overall PFC emission reductions.
- Continued work toward the World Semiconductor Council members' goal to reduce normalized PFC emissions collectively by 30 percent by 2020. In 2010, when we established our baseline, TI's normalized PFC emission rate was 1.6 per square centimeter of silicon. In 2013, normalized emissions changed to 1.7 as a result of an updated calculation methodology and changes in TI's production processes. As our facilities operate more efficiently, we expect normalized PFC emissions to decrease.
- Purchased grid-supplied power consisting of 21.6 percent renewable energy, up slightly from 20.8 percent in 2012.
- Acquired 1,000 metric tons of CO2e emission allowances in 2013 from Clean Energy Trading to satisfy TI's "aircraft operator" GHG emission reduction obligation under the EU Emissions Trading System. We successfully submitted 73 allowances to cover emissions of 73 metric tons of carbon dioxide generated by air travel within Europe in 2012.
In 2014, in addition to meeting EPA mandatory reporting requirements, TI will report on its GHG emissions performance through voluntary outlets such as the World Semiconductor Council and CDP (formerly known as the Carbon Disclosure Project). In addition, we plan to:
- Continue monitoring emerging legislation worldwide which may impact how we report and manage GHG emissions.
- Identify additional suppliers that can provide abatement technology at U.S. sites to further reduce GHGs.
- Implement at least one energy-reduction project per site to further reduce carbon emissions.