Client
Expertise
Science-based targets
Impact
Ensuring emissions reductions align with the latest climate science.
Challenge
How can an electronic manufacturer move its cross-country value chain towards a more sustainable model?
Computers, mobile phones, and tablets have all become part of modern society’s everyday lives. As the carbon footprints of these products attract increasing attention, ICT companies seek to cut their emissions across their value chains. It is a much-welcomed step by consumers. However, complex production and sales chains require manufacturers to engage with various partners — suppliers, product designers, distributors — to understand their carbon intensity.
As one of the industry’s most prominent electronic manufacturers for international brand customers, Hon Hai Technology Group (Foxconn) witnesses this first-hand. Moving to a more sustainable value chain isn’t straightforward for the company, which manages more than 205 factories and offices across 24 countries. Foxconn needed a consistent approach to measuring its value chain emissions; one that can be adapted to various production systems across regions.
To achieve this, Foxconn hoped to set the foundation for action: a carbon reduction target for its value chain in line with the Paris Agreement’s 1.5C target. A carbon reduction target in line with the latest climate science would be a natural next step in Foxconn’s climate journey. The company committed to reaching Net Zero by 2050 and joined Climate Action 100+, an initiative for the largest corporate emitters to act on climate change.
SOLUTION
Defining emissions reduction targets as a basis for action
As a member of the Science Based Targets initiative (SBTi)’s Technical Advisory Group, the Carbon Trust was in a good position to help Foxconn define and set science-based targets. As part of this we:
Quantified Foxconn’s Scope 1, 2 and 3 emissions, encompassing the company’s energy-related and operational emissions as well as its indirect emissions across the full value chain.
Collaborated with internal departments to establish a consistent methodology for calculating emissions across Foxconn's global operations. Here we outlined how the company can track and improve the accuracy of its Scope 3 footprint over time.
Helped Foxconn understand the SBTi standards on setting climate targets, which align with what the latest climate science says is needed to limit global warming.
Assisted Foxconn in setting emissions reduction targets in line with a 1.5 C pathway. At present, Foxconn’s near- and long- term targets as well as its Net Zero targets have been validated by the SBTi.1
IMPACT
Embracing climate action across the group
Foxconn has made climate action a group-wide effort by working closely with internal departments. With SBTi-validated science-based targets in place, Foxconn was able to:
Solidify its position on climate change and demonstrate it is actively seeking to cut its emissions
Set an industry-wide example in China. As the first major electronic manufacturer operating in China with a science-based target, Foxconn can motivate its suppliers and competitors to follow suit.
Gain support for Foxconn’s climate targets across the wider organisation. This is essential groundwork for further emissions reductions to fulfil the company’s approved climate targets.
Working with the Carbon Trust has helped us gain a clearer understanding of how we should tackle climate change, promote the sustainable development goals of energy conservation and carbon reduction, fulfil our responsibility to protect the environment, and achieve Net Zero emissions as soon as possible.
1 The validated science-based targets feature on the Science Based Targets initiative’s target dashboard under 'Hon Hai Precision Industry Co Ltd.'
