Supply Chain Summit: Foxconn gearing up to set up zero-carbon value chains worldwide

Ninelu Tu, Taipei; Willis Ke, DIGITIMES Asia 0

Foxconn's chief environmental protection officer Huang Jung-chung. Credit: DIGITIMES

How to acieve net zero emissions is emerging as a priority concern for supply chain players facing related requirements from major brand clients. In this regard, Foxconn Technology's chief environmental protection officer Huang Jung-chung has stressed that only by combining new trends and new methods can enterprises rise well in the ongoing wave of green revolution.

Hung said at the 2022 Supply Chain Summit hosted by DIGITIMES Asia that Foxconn currently has 137 factories and offices in 24 countries and regions around the world, and the global deployments not only enable the company to quickly shift production lines to other regions if the supply chain in any single region becomes disconnected, but also contribute to energy conservation.

A huge globalized company like Foxconn always needs massive data computing at its manufacturing complexes, requiring the support of a large amount of electricity, Hung said, noting that its plants worldwide can first transmit data that needs to be processed to its cloud datacenter via edge devices, and the data will then be distributed to and processed at those manufacturing complexes where solar power is available, thus reducing power demand and carbon emissions.

As many noted brand customers require suppliers to use 100% renewable energy by 2030, Foxconn will not only meet the requirement on its own, but will also help its supply chain partners reach the criteria, Hung said, stressing that 90% of carbon emissions from the ICT industry are indirect emissions from a company's value chain as defined in the Scope 3 of Greenhouse Gas (GHG) Protocol.

Hung disclosed that since 2020, Foxconn has mandated itself to cut carbon emissions by 4.2% per year, and also helped supply chain partners move in the same direction for carbon reductions.

In helping supply chain firms fulfill ESG (environmental, social and governance) goals, Hung pointed out, Foxconn has aimed to achieve the goal of reaching carbon neutrality by 2050 and will utilize various means to evaluate the performance of supply chain partners in meeting carbon reduction and zero-waste goals it has set for them, while also sharing its experiences and results in the aspects.

Hung stressed carbon neutrality is a wrestling between the strengths of new economic entities under the government structure, with mechanisms such as carbon tariffs on the surface and new economic warfare going underground. He continued that infrastructure construction and technical capability will be the key to future economic success, while developing low-carbon products and adjusting operation basics will be crucial to the success of enterprises.

Hung believes that carbon reductions and net-zero emissions has become an irreversible trend. The initial stage of green manufacturing transformation will increase the cost of supply chain players in adopting green energy in the short term, and small manufacturers with low profit margins will face the risk of being driven out of the market. And in the medium and long term, supply chains will be reshuffled, with low-carbon industrial structure to gradually take shape and become the mainstream, he said.