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Digitalisation and ESG are prominent and high-priority topics in the global business community. The first focuses on applying technology throughout the value chain to produce faster, smarter, and more desirable business outcomes. The latter emphasises the broader value a business is expected to create for its stakeholders from an environmental, social, and governance perspective.
Digitalisation has the potential to reduce global emissions by up to 20% in sectors such as energy, materials, and mobility. By 2030, these industries can reduce emissions by 4-10% by accelerating the adoption of digital technologies2. However, the energy consumption of digital technologies is also a significant contributor to carbon emissions. During the first months of COVID-19 stay-at-home orders from January to March 2020, internet use grew by 40%, ultimately demanding 42.6 million megawatt-hours of additional electricity globally.
The Paradox of the Semiconductor Industry in Meeting Global Climate Goals
The industry presents a paradox. Meeting global climate goals will, in part, rely on semiconductors. They’re integral to electric vehicles, solar arrays, and wind turbines. But chip manufacturing also contributes to the climate crisis. It requires huge amounts of energy and water—a chip fabrication plant, or fab, can use millions of litres of water a day—and creates hazardous waste. While the industry contends with its emissions, manufacturing expansion, and advancement, these are required to, among other things, support the global economy and limit the impacts of climate change for all industries, adding an intriguing level of nuance to the semiconductor emissions story.
To read this entire article, which appeared in the March 2024 issue of PCB007 Magazine, click here.
