Foxconn Supplier Carbon Reduction Case
The emission reduction case of a Foxconn supplier illustrates how to work with partners to reduce carbon emissions in the supply chain.
Subsidiary brands:
Green Supply Chain CITI
Corporate Climate Action CATI
CITI score
70.30
Total Possible Score: 100Total rank
11
Out of 650 total brandsIndustry rank
2
Out of 56 total brands in the IT/ ICT industry
CATI score
69.00
Total Possible Score: 100Total rank
11
Out of 1000 total brandsIndustry rank
4
Out of 89 total brands in the IT/ ICT industry
CITI Category Scores Analysis
CATI Category Scores Analysis
CITI Category Scores Benchmarking
CATI Category Scores Benchmarking
CITI Category Scores
CATI Category Scores
1. Responsiveness and Transparency（total score: 14.00）
11.00-
1.1 Respond to Enquiries and Engage with Public
6.00Brand appoints someone to follow up on green supply chain management in China, and the frequency of communication with stakeholders occurs more often than quarterly, OR Brand appoints someone to follow up on green supply chain management in China, and employs the automatic reporting form provided by the Blue EcoChain or equivalent systems to communicate with stakeholders about green supply chain management.
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1.2 Promote Supply Chain Transparency
5.00Brand updates published list of its suppliers in China at least annually and the list includes higher environmental impact suppliers, and publicly discloses supply chain environmental information in the form of a map, OR Brand comprehensively pushes its suppliers in China, including suppliers with high environmental impacts, to use the Blue EcoChain or other automated methods to track their own environmental performance and commit to provide public disclosures regarding violations in a timely manner, thereby accepting public supervision.
2. Compliance and Corrective Actions（total score: 18.00）
14.00-
2.1 Establish Screening Mechanism
5.00Brand employs the Blue EcoChain or other automated methods to track its suppliers’ environmental compliance AND comprehensively pushes its suppliers to track their own environmental compliance, including potential suppliers.
-
2.2 Push Suppliers to Take Corrective Actions
9.00Brand publicly requires supplier environmental compliance in writing and commits to stakeholders that it will push suppliers to adopt corrective actions, and pushes problem suppliers to promptly issue public explanations regarding the reason for violation, corrective actions already undertaken or in progress, and current compliance status in a timely manner, and pushes suppliers with high environmental risks to verify the effectiveness of the corrective actions OR continuously disclose information on corrective actions.
3. Extend Green Supply Chain Practices（total score: 30.00）
18.00-
3.1 Responsible management of chemicals
4.00Brand pushes problem suppliers to promptly issue public explanations regarding the reason for violation, corrective actions already undertaken or in progress, current compliance status in a timely manner, verify the effectiveness of the corrective actions or continuously disclose information on corrective actions, and pushes chemical suppliers to track their own environmental performance via the Blue EcoChain or other automated methods.
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3.2.1* Responsible management of wastewater
2.40Brands employs the Blue EcoChain or other automated methods to track the environmental performance of suppliers’ centralized wastewater treatment facilities. Brands pushes suppliers to notify centralized wastewater treatment facilities with environmental violations to adopt corrective measures, issue public explanations regarding the reason for violation, corrective actions already undertaken or in progress and current compliance status, and employ the Blue EcoChain or other automated methods to track their own environmental performance.
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3.2.2* Responsible management of solid waste
5.60Brand employs the Blue EcoChain or other automated methods to track the environmental performance of suppliers’ solid waste transportation, utilization and disposal entities. Brand pushes suppliers to notify those with environmental violations to adopt corrective measures, issue public explanations regarding the reason for violation, corrective actions already undertaken or in progress, current compliance status, and employ the Blue EcoChain or other automated methods to track their own environmental performance.
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3.3 Responsible management of logistic supplier
2.00Brand extends its environmental management to the logistics process along its supply chain and publicly disclose green logistics policies, and employs the Blue EcoChain or other automated methods to track logistics suppliers’ environmental performance.
-
3.4 Supplier self-management
4.00Supplier pushes its own problem suppliers to promptly issue public explanations regarding the reason for violation, corrective actions already undertaken or in progress, current compliance status in a timely manner, verify the effectiveness of the corrective actions or continuously disclose information on corrective actions, and pushes its suppliers to track their environmental performance via the Blue EcoChain or other automated methods.
4. Energy Conservation and Emissions Reduction（total score: 32.00）
22.80-
4.1 Push suppliers to reduce their energy use and carbon footprint, and disclose energy and climate data
13.80Brand calculates the greenhouse gas emissions from its value chain, publicly discloses its value chain reduction targets and implement initiatives to reduce greenhouse gas emissions across its value chain.
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4.2 Push suppliers to reduce resource use and pollutant emissions, and disclose pollutant release and transfer data
9.00Brand has publicly disclosed resource use and efficiency, and pollutant reduction target(s) and the progress made against these targets. Brands has identified priority sectors for resource use and pollutant emissions in its supply chain in China, as well as suppliers with high resource consumption and pollutant emissions, and continuously pushes identified suppliers with high resource consumption and pollutant emissions in China to measure and publicly disclose their verified PRTR data, set up and publicly disclose their reduction targets.
5. Promote Public Green Choice（total score: 6.00）
4.50-
5.1 Guide the public into paying attention to the environmental performance of its supply chains in China
4.50Brand guides the public to participate in the sorting and recycling of waste products and packaging on a large scale by promoting products designed for easy classification, easy recycling, easy reclamation, establishing waste recycling systems in areas with mature waste separation mechanisms, or other ways.
Note:
The total score of category 3.2 is 12, while the conversion ratio for indicator 3.2.1 and 3.2.2 will vary by industry (See CITI Evaluation Guidelines-Appendix II)
1.1 Governance:
Pledged Policies
（total score: 5.00）
5.00
-
1.1.1 Company has committed to climate actions and made climate declaration(s)
1.00 -
1.1.2 Company has developed corporate carbon neutrality plan and management system
1.00 -
1.1.3 Company has incorporated supplier carbon data reporting into supplier code of conduct
1.00 -
1.1.4 Company has developed policies to guide low-carbon production and lifestyle, contributing to the transition towards a low-carbon society
2.00
1.2 Governance:
Mechanism Construction
（total score: 5.00）
5.00
-
1.2.1 Company has integrated climate-related issues into its business strategy and has specific climate-related risk management procedures
1.00 -
1.2.2 Company has integrated climate-related issues into board-level oversight
1.00 -
1.2.3 Company employs Blue EcoChain or other automated methods to track supplier climate performance
1.00 -
1.2.4 Company offers capacity building and financial incentives, and/or launches innovative projects for suppliers to reduce emissions
2.00
2.1 Measurement & Disclosure:
Scope 1&2 Emissions
（total score: 10.00）
10.00
-
2.1.1 Company has publicly disclosed Scope 1&2 emission data
5.00 -
2.1.2 Company has publicly disclosed carbon intensity
2.00 -
2.1.3 Company has publicly disclosed energy efficiency
2.00 -
2.1.4 Company has publicly disclosed information on carbon emission trading
1.00
2.2 Measurement & Disclosure:
Scope 3 Emissions
（total score: 7.00）
5.50
-
2.2.1 Company has publicly disclosed Scope 3 emissions
3.00 -
2.2.2 Company collects supplier carbon emission data on a regular basis
2.50
3.1 Carbon Targets Setting:
Scope 1&2 Targets
（total score: 7.00）
5.00
-
3.1.1 Company has set and publicly disclosed its ongoing Scope 1&2 emission reduction targets
2.00 -
3.1.2 Company has set and publicly disclosed its Scope 1&2 carbon neutrality target
2.00 -
3.1.3 Company has set and publicly disclosed its renewable energy target
1.00
3.2 Carbon Targets Setting:
Scope 3 Targets
（total score: 7.00）
5.00
-
3.2.1 Company has set and publicly disclosed its ongoing Scope 3 emission reduction targets
2.00 -
3.2.2 Company has set and publicly disclosed its Scope 3 carbon neutrality target
2.00 -
3.2.3 Company has set specific objectives on promoting suppliers (at least those in China) to set their own emission reduction targets
1.00
4.1 Performance against Carbon Targets:
Scope 1&2 Emission Reduction Progress
（total score: 8.00）
5.00
-
4.1.1 Company has publicly disclosed progress made against its Scope 1&2 emission reduction targets
3.00 -
4.1.2 Company has publicly disclosed progress made against its Scope 1&2 carbon neutrality target
0.00 -
4.1.3 Company has publicly disclosed progress made against its renewable energy target
2.00
4.2 Performance against Carbon Targets:
Scope 3 Emission Reduction Progress
（total score: 9.00）
2.00
-
4.2.1 Company has publicly disclosed progress made against its Scope 3 emission reduction targets
0.00 -
4.2.2 Company has publicly disclosed progress made against its Scope 3 carbon neutrality target
0.00 -
4.2.3 Company employs Blue EcoChain or other automated methods to track its suppliers’ target setting progress
2.00
5.1 Climate Action:
Decarbonization in Company Operation
（total score: 12.00）
7.50
-
5.1.1 Company has conducted non-fossil energy utilization projects and/or green power procurement and disclosed associated emission reductions
1.00 -
5.1.2 Company has conducted energy efficiency improvement projects and disclosed associated emission reductions
4.00 -
5.1.3 Company has conducted energy monitoring and energy management (e.g. energy management system certification)
1.00 -
5.1.4 Company has reduced emissions through carbon offsets, and disclosed associated emission reductions (e.g. Carbon Capture, Utilization and Storage (CCUS), Nature-based Solutions (NbS), market-based carbon offset mechanisms)
1.00 -
5.1.5 Company has conducted other types of emission reduction projects and disclosed associated emission reductions (e.g. direct emission reduction from manufacturing process, logistic optimization)
0.50
5.2 Climate Action:
Decarbonization in Value Chain
（total score: 6.00）
4.00
-
5.2.1 Company promotes suppliers to conduct corporate greenhouse gas and energy management (e.g. greenhouse gas accounting, product carbon footprint certification, energy management system certification)
1.00 -
5.2.2 Company has launched emission reduction initiatives with suppliers and disclosed associated emission reductions
1.00 -
5.2.3 Company has published best practices on supply chain carbon management annually
2.00 -
5.2.4 Company has conducted emission reduction projects targeting other emission sources along the value chain and disclosed associated emission reductions
0.00
5.3 Climate Action:
Affiliated Company Engagement
（total score: 8.00）
8.00
-
5.3.1 Affiliates have measured and publicly disclosed their carbon emission at facility level
4.00 -
5.3.2 Affiliates have set carbon targets, tracked and public disclosed reduction progress at facility level
4.00
5.4 Climate Action:
Upstream Supplier Engagement
（total score: 16.00）
7.00
-
5.4.1 Direct suppliers have measured and publicly disclosed their carbon emissions at facility level
2.00 -
5.4.2 Direct suppliers have set carbon targets, tracked and publicly disclosed reduction progress at facility level
2.00 -
5.4.3 Indirect suppliers have measured and publicly disclosed their carbon emissions at facility level
1.50 -
5.4.4 Indirect suppliers have set carbon targets, tracked and publicly disclosed reduction progress at facility level
1.50 -
5.4.5 Company employs Blue EcoChain or other automated methods to empower upstream suppliers on supply chain carbon management
0.00
Note:
As carbon hotspots vary from industry to industry, a weighting factor applies across four of the five CATI activity areas: Measurement & Disclosure (17%), Carbon Targets Setting (14%), Performance against Carbon Targets(17%) and Climate Action (42%). The default weighting factors for each industry are shown in the CATI Evaluation Guidelines.
Brand Storiesmore
Foxconn Supply Chain Carbon Neutral Initiative
Energy conservation and emission reduction has become an important concern topic for global enterprise. As a leader in technology manufacturing industry, Chairman Liu Yangwei of Foxconn Technology Group defined the strategic direction of "sustainable operation = EPS + ESG", focusing on "Integrity Management, Innovation and Service, Responsible Supply Chain, Green Manufacturing, Friendly Workplace", taking energy conservation, emission reduction, greening and recycling as Foxconn energy policy.
Foxconn's Energy-Saving and Carbon-Reduction Practices
Foxconn joins hands with partners to build a green ecosystem, promote product energy conservation, low carbon emissions, greening and recycling through the green supply chain life cycle, and guide the industry toward greening and reduce the impact on the environment.
Foxconn's Energy-Saving and Carbon-Reduction Practices
Foxconn, the world’s largest electronics manufacturer, set up a special energy-reduction technology arm in order to implement energy savings targets and reduce energy consumption, establishing a management platform of “save energy, reduce emissions, go green, recycle.”
Communication Updates
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required a factory to report its annual GHG emissions data.This factory, through motivation from its stakeholder Foxconn, actively reported its GHG emissions data in 2022.Suzhou
Uploaded Carbon Data
● Enterprise has uploaded annual emissions data;
●Driving force: Stakeholders and environmentally conscious consumers.Publication Date：2023/3/23 17:35:08 -
required a factory to disclose its annual resource use and emissions data.This factory, through motivation from its stakeholder Foxconn, actively reported its pollutant release and transfer registry (PRTR) data. The factory has reported and publicly disclosed PRTR data in 2021, 2022.Suzhou Disclosed PRTR Data
● Enterprise has published annual emissions data;
●Driving force: Stakeholders and environmentally conscious consumers.Publication Date：2023/3/23 13:57:02 -
required a factory to report its annual resource use and emissions data.This factory, through motivation from its stakeholder Foxconn, actively reported its pollutant release and transfer registry (PRTR) data. The factory has reported PRTR data in 2021, 2022.Suzhou Uploaded PRTR Data
● Enterprise has uploaded annual emissions data;
●Driving force: Stakeholders and environmentally conscious consumers.Publication Date：2023/3/22 22:23:40 -
required a electronics factory to conduct an audit for its air emissions supervision record(s).This factory, through motivation from its stakeholder Foxconn, actively communicated with environmental groups to implement corrective actions for its supervision record(s) , and underwent a third-party audit to verify the effectiveness of its corrective actions.Suzhou
Air Emissions
● Environmental violation issue: Industrial emissions pollution;
● Potential impact on: air quality, public health.
Audit
● Rectification progress:Enterprise with supervisions has demonstrated the effectiveness of corrective actions via third party audits;
●Driving force: Stakeholders and environmentally conscious consumers.Publication Date：2023/3/22 18:13:13
