TI maintains a process within our International Standardization Organization (ISO) 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, which consist of environmental, safety and industrial hygiene media specialists. These specialists are responsible for continually identifying, tracking, and communicating changes to 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
Risks
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’re committed to being part of the solution. In addition, we work through associations to provide context and perspective on the potential impacts of legislative and regulatory proposals.
Regulatory
Compliance is the baseline standard for operation 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, in 2010, the U.S. Environmental Protection Agency (EPA) finalized two new GHG rules. TI must comply with both, beginning in 2011:
Preconstruction permitting for 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. fabrication sites, to obtain permits for GHG emissions resulting from new or modified sources of GHGs. These permits must be obtained before constructing such sources if GHGs are projected to exceed certain thresholds. In order to obtain the permits, new sources or modifications must incorporate the best achievable 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.
We have developed systems and processes to comply with both new EPA rules and are working with industry associations and the EPA to address potential issues and ensure a smooth implementation of these rules.
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. Typhoons naturally occur; therefore, their frequency or intensity cannot be conclusively tied to climate change. We have not experienced significant business interruption due to weather-related events. However, in any natural or manmade 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 manmade 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 in which TI participates are taking significant action to increase energy efficiency and the availability of renewable energy, which help reduce 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 an industry leader in providing power management and ultra-low-power solutions, TI is well-positioned to respond to these needs:
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 is also already working on ways to harness untapped power such as wind, solar, kinetic energy and even body heat.
Regulatory
With continued legislative and regulatory focus on developing new sources of power, reducing energy consumption, and reducing emissions in coming years, TI’s business opportunities in these areas (both near- and long-term) may likely escalate.
Physical
Potential physical changes associated with climate change present opportunities for TI. Whether enabling new technology to predict, understand and respond to extreme weather conditions or helping facilitate the latest in medical equipment and emergency-response communications, we can help our customers successfully address these challenges.
