TSMC Subsidizes Suppliers for Carbon Reduction, Driving Green Investments Worth NT$5.5 Billion
Selection Based on Three Key Criteria to Ensure Successful Implementation and Benefits
Carbon emissions from supply chain operations are a critical concern for TSMC. According to a survey of suppliers’ factories approximately half of the carbon emissions from TSMC’s tier-one raw material suppliers originate from their factories’ direct emissions (Scope 1) and indirect emissions related to energy (Scope 2). Therefore, the carbon reduction subsidy program prioritizes suppliers with legally registered factories in Taiwan that are committed to investing in energy-saving and/or carbon-reduction equipment. These suppliers are encouraged to submit carbon reduction proposals. TSMC, together with external experts, evaluates these proposals based on three key criteria: effectiveness, execution capability, and innovation and replicability. Once a proposal is approved and implemented, TSMC collaborates with third-party audit organizations to visit the suppliers’ factories to monitor progress and conduct mid-term and final outcome reviews, ensuring that the actions are completed on schedule.
Evaluation for the 2024 Supply Chain Carbon Reduction Subsidy Project
| Criteria | Item | Description |
|---|---|---|
| Effectiveness | Carbon Reduction | Methodology and rationale for calculation, aiming for an annual carbon reduction of at least 100 metric tons |
| Feasibility | Evaluation of the proposal’s feasibility and its schedule arrangement | |
| Cost-effectiveness | Justification of the project budget and analysis of cost-effectiveness | |
| Execution Capability | Corporate Climate Policy | The applicant demonstrates short, medium, and long-term carbon reduction targets and action plans |
| Third-party Certification | The applicant has obtained ISO 14064-1 (organizational carbon inventory), ISO 14067 (product carbon footprint), and ISO 50001 (energy management system) certifications | |
| Personnel | The applicant employs personnel certified in carbon inventory or trained in carbon management | |
| Innovation and Replicability | Replicability | The proposal can be replicated and applied by other industry peers |
| Smart or Digitalization | Integration of digital transformation or intelligent management systems in the proposal | |
| Innovativeness | The proposal is innovative or introduces new technology applications |
“Thanks to TSMC’s carbon reduction subsidy program, Chang Chun Petrochemical Co., Ltd. has successfully implemented various energy-saving and carbon reduction initiatives. Looking ahead, we are committed to advancing chemical recycling technology, fostering a circular economy, and minimizing the carbon footprint of our products.” Chih-Chuan Tsai,President of Chang Chun Petrochemical Co., Ltd. Under Chang Chun Group