AMD Accelerates Climate Action with Comprehensive Climate Transition Plan

Strategic Insights -

The world's leading semiconductor manufacturer, AMD, has developed a Climate Transition Plan aimed at decarbonizing its operations, supply chain, and products while promoting accountability and cooperation. The plan is built on a forward-looking approach to environmental sustainability pillars, aligning with industry standards. AMD's ambition is to pursue a science-based emissions reduction goal, collaborate with suppliers and industry groups to support a 1.5°C pathway, and accelerate product energy efficiency to help others achieve their climate goals.

Key Takeaways:

  • AMD has set a science-based emissions reduction goal, aligned with the Science-based Target initiative's (SBTi's) 1.5-degree minimum target ambition, aiming for a 4.2% linear annual reduction.
  • Collaboration with suppliers and industry groups is crucial in addressing Scope 3 emissions, which are estimated to be 11.4 times higher than operational emissions globally.
  • AMD has set new 2030 targets, including a 25% reduction in carbon intensity for manufacturing suppliers and a 20x increase in rack-level server AI energy efficiency from 2024 to 2030.
  • The Climate Transition Plan directly supports AMD's decarbonization efforts by encouraging collaboration and aligning corporate strategy with climate goals.
  • Examples of the plan's implementation include managing energy use in operations, prioritizing and engaging suppliers on direct energy, renewable energy sourcing, and materials sourcing, and incorporating energy efficiency into product design.
  • Incentives are linked to annual performance metrics, promoting accountability and progress toward energy and climate objectives.
  • AMD is actively supporting industry collaborations that advance a low-carbon economy aligned with a 1.5°C scenario.

Statistics:

  • Global supply chain emissions are estimated to be 11.4 times higher than operational emissions.
  • AMD aims to reduce its carbon intensity by 25% for manufacturing suppliers by 2030.
  • AMD plans a 20x increase in rack-level server AI energy efficiency from 2024 to 2030.
  • The Science-based Target initiative's (SBTi) 1.5-degree minimum target ambition aims for a 4.2% linear annual reduction.

Sources:

  • Industry standard reference is based on Transition Plan Taskforce disclosure framework published in October 2023: https://www.ifrs.org/content/dam/ifrs/knowledge-hub/resources/tpt/disclosure-framework-oct-2023.pdf
  • CDP, "Environmental supply chain risks to cost companies $120 billion by 2026," 2021: https://www.cdp.net/en/press-releases/environmental-supply-chain-risks-to-cost-companies-120-billion-by-2026
  • Transparency, Ambition, and Collaboration: Advancing the Climate Agenda of the Semiconductor Value Chain: https://discover.semi.org/rs/320-QBB-055/images/Transparency-Ambition-and-Collaboration-BCG-SEMI-SCC-20230919.pdf