We wanted to share an update from Green Century’s progressive work with improving the semiconductor industry. Green Century is the only mutual fund company in the U.S. wholly owned by environmental and public health non-profits. Blue Summit uses Green Century Funds in our model portfolios.
After filing shareholder proposals with each company, Green Century successfully secured commitments to publish climate transition plans with the following companies:
Advanced Micro Devices, Inc
ON Semiconductor Corporation
Texas Instruments, Inc.
Climate transition plans detail companies’ near- and medium-term strategies and future actions deemed necessary to reaching their greenhouse gas emissions reduction goals. The United Nations describes such plans as an essential tool for building public trust, helping companies align governance and incentive structures, capital expenditures, research and development, skills and human resource development, and public advocacy with their targets.
Semiconductor chip manufacturing is energy intensive and relies heavily on electricity to power equipment and maintain clean rooms. As a result, companies like Intel, NVIDIA, and ON Semiconductor are looking to source 100% renewable energy for their operations.
“The semiconductor industry has some very real challenges to overcome in order to secure a path to net-zero emissions,” said Green Century Shareholder Advocate Andrea Ranger, “The window of time for limiting devastating climate impacts is so narrow; we need to know that companies are planning and doing their part to ensure a livable future.”
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Blue Summit does not directly engage with companies listed above. Many, but not all clients, are invested in funds that perform this advocacy.