After Foxconn committed to net-zero emissions in 2020, it actively adopted strict standards set by SBTi and other organizations, used scientific-based methods to formulate climate action goals, and further developed a roadmap for net-zero carbon emissions. Our zero-carbon emission path prioritizes carbon reduction in our own operations (≥3%), builds on-site renewable energy power stations (≥5%), gives priority to carbon reduction in our own operations and then combines it with other carbon reduction strategies, such as introducing renewable electricity ( ≤82%) and carbon sequestration and carbon-negative technologies (≤10%), etc., and actively implement various action guidelines to move towards the net zero goal. Foxconn’s carbon reduction path is applicable to most electronics companies and provides a reference for the industry to achieve net-zero carbon emissions.
Figure 1: Foxconn’s path to net zero
It is not difficult to see the group’s net-zero carbon path, which promotes the use of renewable energy to reach a weight of 87%. Therefore, after disclosing scientific carbon reduction targets, the group proactively joined RE100 and committed to achieving 100% green electricity by 2040. RE100 (100% Renewable Electricity) is a global, cooperative business initiative. The international non-profit climate organization (The Climate Group, referred to as TCG, is the main sponsor) and another non-profit international organization Carbon Information Disclosure Project (Carbon Disclosure Project (CDP) was co-initiated and managed in 2014 to promote the transition of enterprises to 100% renewable electricity.
The mission of RE100 is to accelerate the achievement of zero carbon emissions in the global power grid. Companies joining RE100 must commit to using green electricity no later than 2050, which can include biomass (including biogas), geothermal, solar, hydro and wind power from the market or self-production, and disclose their electricity consumption data and target progress every year. As of 2023, more than 400 of the world's most influential companies have joined, and Foxconn has officially become a member of RE100.
Figure 2: Three main ways to meet RE100
Referring to the group's net-zero carbon path and combined with supplier carbon emission data analysis, approximately 95% of carbon emissions in the electronics industry are generated by purchased electricity. To push suppliers to achieve carbon reduction goals, suppliers must be required to use green electricity and significantly reduce Scope 2 carbon emissions. Therefore, Foxconn pushes its suppliers to sign renewable energy agreements, requiring them to commit to using 100% green electricity to produce Foxconn products. After the supplier signs the agreement, Foxconn will track the supplier's green power target achievement status in advance. Suppliers that have achieved the target are required to provide green power certificates, and suppliers that have not achieved the target are required to provide a green power usage plan and implement green power usage in accordance with the plan. In order to ensure that suppliers use 100% renewable energy to produce Foxconn products, we have developed a complete tracking and implementation plan.
Figure 3: Foxconn promotes suppliers to use green electricity model
Because promoting suppliers to use green electricity is an important part of Foxconn's efforts to achieve net-zero carbon emissions in the value chain, promoting suppliers to sign renewable energy agreements will be included in the group's long-term ESG goals and monthly performance assessment targets. In 2025, we need to push more than 45 major suppliers to commit to using 100% renewable electricity to produce Foxconn products. So far, we have pushed a total of 31 major suppliers to sign back on this agreement.
Figure 4: Foxconn pushes suppliers to commit to 100% green electricity target
In 2024, Foxconn will begin to follow up on the progress of suppliers who have signed Foxconn’s renewable energy agreement on the use of green electricity. We require suppliers to use financial methods to calculate the electricity consumption of producing Foxconn products, propose solutions that meet green power usage requirements, and provide corresponding evidence as required. The requirements are as follows:
1. Investing in green power stations: provide proof of ownership of green power stations and statistical data on power generation.
2. Purchasing green electricity: provide green electricity purchase contracts, green electricity consumption vouchers and green certificates.
3. Purchasing green certificates: provide valid green certificates recognized by the country/region.
Figure 5: Suppliers are required to provide green electricity certification materials
By promoting 31 suppliers to use green electricity totaling 71,904,000 kWh in 2024, it is expected to reduce carbon dioxide emissions by 126,081 tons. In the future, Foxconn will continue to promote suppliers to sign renewable energy agreements, requiring them to use green electricity to reduce their own carbon emissions and achieve Foxconn's carbon reduction goals. We firmly believe that the use of green electricity is the future development trend of the industry, and guiding the green development of the industrial chain is the unshirkable responsibility of enterprises.
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