Puts ambition in line with 1.5°C trajectory, a climate action imperative

24 April 2024, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) today announced its overall science-based net-zero targets have been validated by Science Based Target initiative (SBTi), a move the world’s largest electronics manufacturer and technology service provider hopes will accelerate climate action across its value chain.

Since 2020 when Foxconn first committed to reaching net zero by 2050, the Group has joined multiple sustainability initiatives aiming to align its operations with the Paris Agreement 1.5°C trajectory, a crucial threshold from pre-industrial levels on global warming for ensuring a safer, sustainable world.

“We have always insisted on a green and smart, circular economy in our environmental development strategy. Our various action plans implement Foxconn’s determination and ambition to reduce carbon emissions,” says Foxconn Chief Environment Officer Ron Horng. “This validation by SBTi is an important milestone for Foxconn and motivates the team to continue working hard and take scientific actions to achieve net-zero emissions by 2050.” 

The SBTi validation is part of the global initiative by CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.

As part of the journey stages under SBTi, Foxconn submitted its carbon reduction commitment to the global initiative in 2021 and received its first validation on near-term targets in 2023. The following science-based emissions reduction targets were approved in April 2024 by SBTi under Foxconn’s formal name – Hon Hai Precision Industry Co Ltd:

- Overall Net-Zero Target: Commits to reach net-zero greenhouse gas emissions across the value chain by 2050 from a 2020 base year.

- Near-Term Targets: Commits to reduce absolute scope 1 and 2 GHG emissions 42% by 2030 from a 2020 base year, and also commits to reduce absolute scope 3 GHG emissions 42% within the same timeframe.

- Long-Term Targets: Commits to reduce absolute scope 1 and 2 GHG emissions 90% by 2050 from a 2020 base year, and also commits to reduce absolute scope 3 GHG emissions 90% within the same timeframe.

More background: 

- On Earth Day 2024, Foxconn announced its worldwide operations will run on 100% renewable electricity by 2040 and that it joined the global initiative RE100. The pledge, on the company’s 50th anniversary, is an acceleration of Foxconn’s determination to move its operations towards a more environmentally friendly and sustainable direction. Foxconn’s renewable energy ratio now exceeds 40%, two years after it first publicly pledged on Earth Day 2022 to use at least 50% green power by 2030. 

- For 2023, under CDP’s scoring for environment stewardship, Foxconn earned an (A-) in climate change and an (A) in supplier engagement rating, demonstrating leadership in both areas. It scored a (B) in water security, indicative of good environment management. All three metrics improved from the previous year.

- Foxconn’s zero-carbon emission path prioritizes carbon reduction in its own operations (≥3%), builds on-site renewable energy power stations (≥5%), gives priority to carbon reduction in its own operations and then combines it with other carbon reduction strategies, such as introducing renewable electricity (≤82%) and carbon sinks and carbon-negative technologies (≤10%), among measures, to actively implement various action plans to move towards the net zero goal.

- Foxconn’s three major climate goals:

*Comply with Taiwan’s cabinet-level National Development Council and the carbon emission policies of local governments where the Group’s factories are located.

*Ensure the Group’s greenhouse gas (GHG) emissions policies across the value chain are consistent with the goals of the Paris Agreement and reach net zero by 2050.

*Take actions to fulfill the following three goals proposed by the Climate Action 100+:

1. Strengthen climate change governance 

2. Take action toward the reducing GHG emissions across the value chain

3. Provide disclosures in accordance with the Climate-Related Financial Disclosure Recommendations (TCFD)