A Taiwanese Manufacturer’s Journey to Decarbonizing its Supply Chain

Client: A leading Asian electronics manufacturing company
Sector: Electronics Manufacturing
Location: Taiwan
Client: Since 2023
Ambition to: Drive measurable emissions reductions in response to the rising demands of international electronic brands and local government
Services: Carbon Inventory | Hotspot Analysis | Supplier Engagement Strategy | Training | Onsite Assessment | Supplier Implementation Support | Third-party verification

About the Company

The company is a prominent electronics manufacturer based in Taiwan, specializing in producing branded electronic products for international vendors. The company is committed to sustainability with approved SBTi near-term, and net-zero target in 2024.

The Challenge

The company was faced with needing to meet the ever-increasing decarbonization requirements set by global electronic brands and regulatory bodies. To address this, a comprehensive supply chain decarbonization program that would help suppliers build carbon inventory capabilities, calculate Scope 1 and 2 emissions, assess the potential reduction opportunities, implement effective reduction measures, and ensure the outcome is verified by a third-party, was required.

Our Approach

  1. Background Understanding & Project Kick-off:
    • Defined the project boundaries and scope, detailing project goals, timeline, and team.
    • Conducted an initial supplier assessment to understand carbon management maturity.
  1. Education & Training:
    • Developed a tailored data collection form for emission sources specific to the electronics industry.
    • Delivered online training seminars covering the data collection form and scope 1, 2 and 3 carbon inventory.
  1. Carbon Inventory Mechanism Introduction & Data Review
    • Collected 2022-2023 greenhouse gas (GHG) emission data and performed quality assessments. Supporting suppliers with the collection to produce the 2022-2023 GHG emission inventory.
    • Conducted onsite visits to confirm emission sources from key manufacturing processes and briefed the sustainability team on how to optimize the data collection process.
    • Reviewed and confirmed the 2023 GHG emission inventory, providing suggestions and a help desk for ongoing support for any carbon inventory data issues.
  1. Onsite Assessments for Decarbonization Initiatives:
    • Conducted onsite assessments for designated large-scale, high-emission suppliers, targeting energy use and reduction methods for key systems.
    • Provided recommendations for optimizing their reduction initiatives.
    • Discussed potential decarbonization initiatives with suppliers, developed an action plan and decided implementation priority.
  1. Training on Decarbonization Initiatives:
    • Researched the government subsidies frameworks on supporting suppliers to reduce carbon, including efficiency improvements, equipment replacements, setting optimizations, etc.
    • Summarized the initiatives from the onsite suppliers and shared the industry’s best practices upon decarbonization.
  1. Third-party Verification on Reduction
    • Engaged a well-known third-party assurance company to verify the methodology for emissions reduction calculation.

Key Outcomes at a Glance

  • Enhanced Supplier Capabilities:

Empowered suppliers with the knowledge and tools to build carbon inventory capabilities, implement reduction measures and approaches to reduce emissions.

  • Comprehensive Carbon Inventory & Decarbonization Action Plan: 

Established a framework for calculating and tracking Scope 1 and 2 emissions and quantified the potential emission reduction from each initiative through onsite assessments.

  • Data Integration:

Facilitated the migration of carbon inventory data to the client’s carbon management platform for regular monitoring.

  • Targeted Reductions:

Identified and engaged with high-emission suppliers for onsite assessments and optimization of reduction schemes.

Reduced a total of 14,265 tCO2e through the collective decarbonization initiatives from suppliers.

Figure 1: Description and Calculation of Reduction Measures

Figure 2: Supporting data for reduction calculation

Figure 3: Emissions Reductions by Equipment and Systems

Figure 4: Emissions Reductions by Energy Saving Methods

Result

The collaboration resulted in a robust supply chain decarbonization program that aligns with the demands of international electronic brands and local government. By empowering suppliers and implementing targeted reduction measures, the company and its suppliers are on track to achieve significant emission reductions.

Is your company ready to drive positive change through decarbonization? Connect with our team to begin your journey.