STMicroelectronics is making significant progress towards its ambitious sustainability targets. According to its latest sustainability report, the European chipmaker reported using 71% renewable electricity in 2023, marking an increase from 62% the previous year.
The shift to greener power sources helped ST avoid 636,000 metric tons of CO2 emissions. ST has pledged to become carbon neutral for direct emissions (Scopes 1 and 2) and some indirect emissions (part of Scope 3) by 2027. As part of that goal, it aims to source 100% renewable electricity by 2027 through power purchase agreements and green energy installations.
Last year, ST signed a major 15-year power purchase agreement with Italian renewable energy company ERG to supply about 250 GWh of wind power annually to its manufacturing sites in Italy starting in 2024.
On the energy efficiency front, ST's manufacturing sites implemented initiatives in 2023 that saved around 139 GWh of energy compared to 2022 levels, comprising 115 GWh of electricity and 24 GWh of natural gas. The company is targeting annual energy savings of at least 150 GWh by 2027.
Progress towards carbon neutrality
Credit: STMicroelectronics
In 2023, ST reported an increase in water consumption per unit of production compared to 2022, attributed to the adoption of advanced manufacturing technologies with a higher manufacturing footprint. Despite the significant water requirements in semiconductor manufacturing, ST recognizes the importance of water conservation and is actively addressing this challenge. The company recycled and reused 42% of its water consumption in 2023.
The company is also making strides in waste reduction, reusing, recovering, or sending 96% of solid waste for recycling last year. In addition, ST is innovating by using more recycled and sustainable raw materials in products like smart cards made with recycled Polyvinyl Chloride (PVC) and plastics reclaimed from oceans.
While increasing energy efficiency and renewable power use, ST's absolute emissions levels rose slightly in 2023 due to higher production volumes and a methodology change for calculating emissions from perfluorinated compounds used in chip manufacturing. The company's net CO2 equivalent emissions totaled 906,000 metric tons.
Still, ST says it's on track to meet approved Science Based Targets to cut operational emissions by 50% by 2025 versus 2018 levels and source 80% renewable electricity by 2025. As of 2023, it had achieved 45% and 71% progress toward those interim goals, respectively.
The push to enhance sustainability comes as semiconductor companies face increasing pressure from investors, regulators, and customers to minimize their environmental footprint and transition to a low-carbon future. With global chipmakers expanding capacity to meet soaring demand, efforts to boost energy efficiency and curb emissions have taken on greater urgency.
