Brand CasesFoxconn Supply Chain Carbon Neutral Initiative

Publication Date:2021-06-09

Hon Hai Foxconn attaches great importance to the carbon neutral policy and announced Hon Hai Climate Action 100+ net zero emission target and commitment on its official website. In January 2021, the Group submitted a 1.5°C carbon reduction commitment with commercial ambitions to the Science Basis Target Initiative (SBTi), and has hired Carbon Trust to assist in accurately calculating the carbon footprint and setting scientific carbon targets:

1.Comply with the Nationally Determined Contributions (NDC) or carbon emission policies of the local government in Hon Hai’s factory area.

2.Hon Hai's greenhouse gas emissions from its value chain are in line with the targets of the Paris Climate Agreement and will achieve net zero greenhouse gas emissions by 2050.

3.Responding to and taking actions on the three major goals proposed by the Climate Action 100+ Steering Committee: (1) Strengthen the governance of climate change; (2) Take action against the greenhouse gas emissions from Hon Hai's value chain; (3) Disclosure in accordance with the Climate-related Financial Disclosures Recommendation (TCFD).

Over the years, the Group has increased the installed capacity of rooftop and ground-mounted solar power stations through self-construction and acquisition. At the same time, the Group has increased the use of clean energy through direct procurement of renewable energy so as to reduce greenhouse gas emissions.

Photovoltaic solar power on the roof of Foxconn in Dongguan, Guangdong Province

On April 23, 2021, the Group and a third-party convened 53 suppliers of semiconductors, PCBs, printed boards, connectors, resistance and capacitor manufacturing, and circuit boards to hold a carbon neutrality online seminar to explain the group's carbon neutrality goals, Introduction to the carbon management system, and matters that require cooperation from suppliers, etc. Head of Foxconn Supplier Energy Conservation and Emission Reduction Management Office stated that: (1) suppliers should comply with the energy conservation and emission reduction policies of the Group and end customers; (2) suppliers with high energy consumption should set carbon reduction targets and establish a carbon emission management system at the organizational and product levels; (3) in response to the carbon neutral policy, suppliers develop their own carbon neutral action plans by saving energy and reducing carbon, purchasing green certificates, building photovoltaic power stations either by themselves or introducing investors to build. The third-party explained the situation of photovoltaic power station and share the successful cases of solar photovoltaic.

 The Foxconn Supplier Management Office actively promotes energy conservation and emissions reduction work for suppliers, and encourages suppliers to disclose carbon data via PRTR datasheet and publish it via the IPE website. The goal for 2021 is to promote 180 suppliers to complete PRTR reporting. As of early June this year, 37 suppliers have completed PRTR data and GHG carbon disclosure. Another 48 suppliers have set their emissions reduction targets via Foxconn’s internal system. At the same time, Foxconn is planning to promote the first-tier suppliers to carry out carbon management on the second-tier suppliers through the Blue Ecochain.

In order to advance Foxconn's carbon reduction goals, we continue to improve the management of our supply chain and drive the implementation of our carbon neutral goals. As of the beginning of June this year, two suppliers have completed self-built solar photovoltaic, and two suppliers are planning to implement it. One of the supplier who is currently building their own solar photovoltaic is Suzhou A company, a PCB supplier of Foxconn. Foxconn will implement and support its construction of a grid-connected distributed photovoltaic power station on the roof of Suzhou A company. The installed capacity of the power station is 1650KWp and the roof area will be about 22,300 square meters. It is estimated that the total income in 25 years will reach RMB 5.5068 million, and the investment cost is expected to be recovered in 5 to 6 years. The photovoltaic power station is invested by a Jiangsu Energy Technology company. renting the roof of company A. The photovoltaic power consumed by company A will be paid to Jiangsu Energy Technology company at a 15% discount on the electricity price of the same period Jiangsu Energy Technology company. The operation mode of the power station is ‘self-use, surplus power online’, the power generated by the power station is given priority to the production and use of Suzhou company A.

Electricity discount graph


Solar installation on company A rooftop

After the construction of the rooftop solar power station is completed, intelligent management can be realized. The operation data of the power station is collected by the data collector and transmitted to the monitoring platform through the GPRS system. Users can have the monitoring function of both the web terminal and the mobile phone client, and can view the real-time operation and historical power generation data of the power station anytime and anywhere.

 The use of clean energy is the trend of future development, and it is the performance of enterprises to do a good job in ESG, which is mainly reflected in the following parts:

1.Green and low-carbon photovoltaic power generation: zero energy consumption, zero emission, no noise, no pollution, can reduce the emissions of carbon dioxide, sulfur dioxide, carbon dust, nitrogen oxides emission produced by coal power generation, thereby reducing haze, easy to enjoy a green and low carbon life, protect the earth home, is conductive to China quickly achieve energy-saving and emission-reduction targets. 

Benefit Analysis Table of company A Photovoltaic Solar Project

2.By installing distributed photovoltaic power generation, it can not only improve the company's image of low-carbon and environmental protection, but also attract a large number of people from governments, enterprises, colleges and universities to visit each year, bringing huge potential business demands.

3.The installation of distributed photovoltaic complies with the requirements of the national policy, and conducive to clean energy projects to protect the environment to some extent alleviate the power shortage of local, to promote sustainable development of the society has the positive significance and can alleviate the pressure of the domestic energy supply, save energy and promote the development of new energy industry, has a positive role. 

In the future, Foxconn will cooperate with more partners to respond to the Paris climate action, meet the national policy requirements and step forward to the carbon neutral road.

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