How STMicroelectronics is Becoming Carbon Neutral

STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, announced a 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd - an entity jointly established by ENGIE Renewable SEA Pte (ENGIE), a renowned global leader in low-carbon energy and services - and Conextone Energy Sdn Bhd, a rapidly emerging solar energy developer in Malaysia.

The agreement will facilitate the supply of approximately 50 GWh of renewable energy annually from a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia.

This long-term agreement is undertaken under the Corporate Green Power Program introduced by the Malaysian Single Buyer in 2023.

Becoming carbon neutral

Geoff West, EVP and Chief Procurement Officer, STMicroelectronics, says: "This long-term power purchasing agreement in Malaysia, ST's first one in Asia, marks yet another important step towards ST's goal of becoming carbon neutral in its operations (Scope 1 and 2 emissions and partially scope 3) by 2027, including the sourcing of 100% renewable energy by 2027.

"PPAs will play a major role in our transition. Starting in 2025, this PPA with ENGIE will provide a significant level of renewable energy for ST's operations in our high-volume test and assembly site in Muar, Johor, Malaysia."

ST's high-volume test and assembly site located in Muar, Johor, has more than 4,700 employees supporting multiple technologies and products, including high reliability applications for automotive customers.

ST also operates support functions out of Penang and Kuala Lumpur.

Green, clean and reliable energy

Amit Jain, Managing Director India & Southeast Asia, ENGIE, adds: "ENGIE is delighted to join forces with STMicroelectronics in the global transition towards sustainable energy solutions.

"By supplying approximately 50 GWh of renewable energy annually from our new solar PV 30 MW project in Malaysia, we are proudly contributing to ST's transition towards 100% renewable sourcing. This partnership with ST demonstrates our commitment to providing green, clean and reliable energy to our clients."

A comprehensive strategy

In 2020, STMicroelectronics announced its commitment to becoming carbon neutral by 2027.

Its carbon neutrality programme includes:

• A comprehensive strategy covering the reduction of direct and indirect emissions, including product transportation, business travel and employee commuting
• The sourcing of 100% renewable energy by 2027
• An intermediate milestone, to be achieved by 2025, with full compliance with the 1.5°C scenario defined in the Paris Agreement adopted at COP21, endorsed by the Science Based Targets Initiative (SBTi)

The programmes in place in all its manufacturing sites address both direct and indirect emissions in accordance with Scopes 1, 2 and partly 3 of the GHG Protocol. In 2022, STMicroelectronics decreased CO2 equivalent emissions by 59% (per unit of production) compared to 2016.

Direct emissions, as defined by Scope 1 of the Greenhouse Gas (GHG) Protocol, represent more than 50% of its total GHG emissions.

In 2022, STMicroelectronics's direct emissions (measured in tons CO2 equivalent) increased by 5% in absolute terms, but it reduced direct emissions per unit of production by 1% compared to 2021. The increase in direct emissions was mainly due to a rise in production volumes, as well as delays in the delivery and installation of abatement systems.

Combating climate change

Marie Thorax, Energy Procurement Manager, EMEA, at STMicroelectronics, concludes: "As part of our transition towards renewable energy, I am expanding our EMEA green energy supply with long-term procurement contracts.

"These will support the development of new renewable energy assets, such as wind farms and solar parks and inject additional renewable electricity into the grid. In terms of carbon offsetting, we are building a strategy that focuses on promoting high-quality projects with robust methodologies and reliable funding.

"It is an exciting journey to be part of ST's contribution to global efforts to combat climate change."

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