Risks and opportunities
Risks | Opportunities
TI maintains a process within our International Standardization Organization 14001-certified environmental, safety and health (ESH) management system to identify, evaluate and track upcoming legal and other ESH-related standards or requirements for our operations, products and services, including those related to climate change.
This process is maintained by ESH review teams that comprise environmental, safety and industrial hygiene specialists. These specialists are responsible for continually identifying, tracking and communicating changes regarding ESH operational and product requirements.
TI's 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.
Although not currently believed to be material, we consider TI exposed to certain regulatory and physical risks associated with climate change. We closely track global energy and environmental concerns and we 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.
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 TI operates.
For example, TI complied with two GHG rules set by the U.S. Environmental Protection Agency (EPA) that went into effect beginning in 2011:
We have developed systems and processes to comply with both new EPA rules.
- Preconstruction permitting for new or modified facilities that will emit "major source" levels of GHG emissions. Known as the "Tailoring Rule" the EPA amended its preconstruction air-permitting rules to require stationary sources, such as TI's U.S. manufacturing facilities, to obtain permits for GHG emissions resulting from new or modified major sources of GHGs. These permits must be obtained before constructing such sources if the projected GHGs may exceed certain major source thresholds. In order to obtain the permits, new sources or modifications 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 requirements to their existing Title V operating permits or to obtain a new Title V operating permit.
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. We have not experienced significant business interruption due to weather-related events. However, in any natural or man-made disaster, TI's priorities are to protect our people, assets, revenue and reputation.
Should any of our global sites be impacted by extreme weather events, TI is prepared. Each TI site worldwide has a business continuity program to respond 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.
Governments and private entities in many of the major markets in which TI operates 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. Stimulus measures taken by most of these governments included significant new incentives and investments in these areas.
As a result, TI anticipates opportunity for growth by providing technologies that will enable our customers to reduce power use and subsequently GHG emissions. Potential customers include electricity providers, distributors, white goods (appliances) manufacturers, and the transportation industry, among many others.
TI is well-positioned to respond to these needs as an industry leader in providing power management and ultra-low-power solutions. For example:
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.
- Our power-management devices and microcontrollers reduce energy consumption in electronics, industrial equipment appliances, PCs and automobiles, and enable smarter homes/buildings and electricity grids.
- Our leading technology in high-quality mobile and wireless communications makes telecommuting and teleconferencing a viable alternative to automobile and air-based transportation, further reducing emissions.
TI invests in research and development and collaborates 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.
In addition, we integrate our own energy-saving technology into our operations where feasible to reduce energy use and associated costs and emissions. For example, when we renovated our more than 50-year-old Semiconductor Building in 2011, we integrated lighting controls that use TI wireless communication devices and installed some LED lighting that uses TI driver chips.
With the continued legislative and regulatory focus on developing new sources of power and reducing energy consumption and emissions in coming years, TI's business opportunities in these areas (both near and long term) may likely escalate.
Potential physical changes associated with climate change present opportunities for TI. Whether facilitating the latest medical equipment or enabling emergency-response communications, our technology can help customers successfully address these challenges.