Foxconn, a key supplier for Apple, has been under scrutiny for its inadequate progress in carbon reduction, according to a recent Greenpeace report. This situation poses a challenge for Apple’s ambitious goal to achieve carbon neutrality in all business areas by 2030. The 2023 Supply Change report by Greenpeace evaluated 11 major suppliers to leading brands, revealing that Foxconn, along with others like Samsung, has made minimal progress in diminishing its carbon footprint.
Xueying Wu, a climate and energy campaigner at Greenpeace, criticized the tech sector, saying, “Tech companies boast a lot about going green, but when you look at the bigger picture, you see that their supply chains are extremely dirty.”
Wu specifically called out the weak climate actions of Samsung Electronics and Foxconn. The report points out an increase in emissions from five major manufacturers, including Foxconn, TSMC, and Luxshare Precision, attributing this rise to a general boost in production.
These suppliers, consuming over 111,000GWh of electricity in 2022, reportedly surpassed the annual electricity usage of Chile. Foxconn received a D+ rating for final assembly performance, indicating little progress in emissions reduction and renewable energy adoption, especially when compared to Luxshare. Notably, Foxconn’s renewable electricity usage stood at a mere 8% in 2022.
Despite a group of suppliers, including Foxconn, Luxshare, and TSMC, pledging to achieve net-zero emissions by 2050, Greenpeace has expressed concerns over their lack of significant emission reduction targets for 2030, which are crucial for aligning with the 1.5C goal of the Paris Agreement. Foxconn announced in April its environmental initiatives, aiming for a 21% emission reduction by 2025 from 2020 levels.
Many suppliers rely on low-impact procurement mechanisms, like Renewable Energy Certificates (RECs), to enhance their renewable electricity procurement ratio. Foxconn, along with Luxshare and Pegatron, sourced at least 70% of their renewable energy through these methods.
While Foxconn’s overall performance in most categories was not commendable, it did receive an A+ in Transparency for its comprehensive disclosure of environmental data, including energy use and emissions.
However, the company scored an F in Advocacy due to the absence of public information or disclosures regarding its efforts in renewable energy policy advocacy and peer information sharing.
