TSMC Introduces Supplier Environmental Information Digital Platform to Achieve Environmental Sustainability

[Daniel Nenni]

TSMC is committed to creating a sustainable business model for the environment and society and actively promoting a green and low-carbon supply chain. To track and measure suppliers’ carbon emissions and enhance their management capabilities, TSMC has developed a Supplier Environmental Information Digital Platform, which serves as an integrated system for supply chain environmental data collection, analysis, and management. By implementing screening criteria, TSMC surveyed 590 supplier factories to identify emission hotspots and key suppliers, as well as key raw materials. This allows to allocate resources and optimize effectiveness in carbon reduction efforts. As of March 2024, TSMC have completed data collection and analysis for 429 supplier factories and 131 types of raw materials. The platform simultaneously covers the information required for ISO 14064-1 greenhouse gas inventory and ISO 14067 carbon footprint verification. After completing online reporting, suppliers can export data for use in their own verification and audit operations, achieving a green win-win.

Improve Environmental Data Collection Efficiency and Quality​

TSMC pays high attention to the carbon emissions generated from the supply chain operation. The Company implements low-carbon supply chain management in five directions: enhancement of data collection, optimization of carbon dioxide (CO2), collaboration with suppliers, ecosystems development, and establishment of an internal carbon reduction policy. TSMC has built a Supplier Environmental Information Digital Platform that has integrated previous multiple environmental-related surveys in one place to greatly reduce suppliers’ burden of having to repeatedly fill out different environmental survey and avoid the issues of inconsistent data. The platform offers two main types of surveys-fab and product-to fill out online. The fab survey gathers detailed plant-level data, such as greenhouse gas emissions, water and electricity consumption, and usage of renewable energy, as well as wastewater, solid waste, air pollutant, toxic chemical, and ionization radioactive material generation and treatment methods. The product survey collects product-level data, including supplier-specific product carbon footprint, production processes, final product transportation information, main raw material, auxiliary material, and the use of packaging material.

Main Functions of TSMC’s Supplier Environmental Information Digital Platform

Data Collection​

• Offers two main types of surveys, fab survey and product survey, for suppliers to fill out, improving data collection efficiency
• Features automatic logical judgment and error alert mechanisms to ensure the data quality

Hotspots Analysis​

• Generates hotspot analysis charts based on different categories of data to identify key suppliers and raw materials

Impact Mitigation Management​

• Develops carbon reduction plans and tactics and allocates resources to help suppliers accelerate low-carbon transformation

The Supplier Environmental Information Digital Platform helps improve TSMC's supply chain environmental management capabilities and gradually achieve the goal of green supply chain. Handy KoDirector of Material Supply Chain Management Division at TSMC

TSMC has established a digital platform to streamline the process for suppliers to easily submit environmental data and help them identify carbon reduction opportunities, thereby accelerating supply chain low-carbon transformation. Lung-Chi YangPresident of Leading Water Industries Co. Ltd.

TSMC regards deepening supply chain sustainability as a key factor in ESG development and expects to complete data collection and analysis of 500 supplier factories and 200 raw material in 2024. The Company will continue to enhance the platform by adding more functions such as automatic calculation of product carbon footprint and AI-assisted automatic data verification, and will also improve the tracking of emission reduction progress of key suppliers and their self-management capabilities, striving towards the goal of developing a net-zero supply chain for the semiconductor industry.

https://esg.tsmc.com/en-US/articles/302