Net-Zero Transition at a Critical Juncture This Year: TSMC Announces Carbon Peak by 2025 and SBTi Net-Zero Target by 2035

On Earth Day 2025, TSMC announced its commitment to address climate change by aligning with the Science Based Targets initiative (SBTi) to implement comprehensive carbon reduction strategies. These strategies cover direct and indirect emissions (Scopes 1 and 2) as well as value chain emissions (Scope 3), with the ultimate goal of reaching net-zero emissions by 2050. The roadmap includes peaking carbon emissions in 2025, returning to 2020 levels by 2030 with 60% renewable energy usage across all global sites (RE60), achieving SBTi net-zero standard by 2035, reaching 100% renewable energy usage (RE100) globally by 2040, and achieving full net-zero by 2050.

In terms of its supply chain, TSMC emphasizes collaboration to reduce emissions. So far, 50 suppliers have signed a carbon reduction agreement, covering 90% of supply chain emissions. Suppliers are required to complete third-party verification of product carbon footprints by the end of 2026; those who do not comply may face reduced business opportunities. Additionally, by 2030, production sites in Taiwan must achieve 85% renewable energy usage (RE85), while overseas sites must reach RE100.

To support supplier transformation, TSMC launched a carbon reduction subsidy program in 2024, providing a total of NT$84 million to assist with the upgrade or installation of energy-saving equipment. In the first round, 26 suppliers were selected, generating NT$5.5 billion in total investments and an expected reduction of 450,000 metric tons of carbon emissions—equivalent to the annual carbon absorption of 45,000 hectares of forest.

Beyond its supply chain efforts, TSMC also promotes sustainable development through green buildings. As of April 2025, it had received 53 LEED Gold or higher certifications from the U.S. Green Building Council, ranking highest among global semiconductor companies. According to the Industrial Technology Research Institute, by 2030, every kilowatt-hour of electricity TSMC uses to produce high-performance computing semiconductors could save the world 6.8 kilowatt-hours. Chairman Mark Liu emphasized that businesses play a key role in the low-carbon transition, and TSMC will continue to collaborate with stakeholders and advance innovative energy-saving technologies to achieve the 2050 net-zero goal.

Reference:

https://e-info.org.tw/node/241202