Sustainable supply chain
ASM is not alone in its efforts to make tangible progress towards improving the sustainability of the semiconductor industry. We are actively involved in communicating, engaging, and collaborating with our partners throughout our supply chain so that together, we can make a bigger difference. We actively encourage our suppliers to consider joining initiatives like the Semiconductor Climate Consortium, of which ASM is a founding member, along with several leading suppliers.
Reducing supply chain GHG emissions
The Greenhouse Gas Protocol identifies three categories of GHG emissions. Scope 1 is direct emissions from company-owned sources, Scope 2 is indirect emissions from purchased energy, and Scope 3 covers all other indirect emissions in the value chain.
About 23% of ASM’s Scope 3 emissions results from our supply chain. The focus of our efforts to address GHG emissions in our supply chain is on GHG Protocol Scope 3 categories 3.1 - purchased goods and services; 3.2 - capital goods; and 3.4 - upstream transportation and distribution.
We are steadily increasing our supplier engagement to better understand and address our Scope 3 GHG emissions. This is a priority element of our Net Zero target by 2035 efforts.
CDP climate change disclosure
To maximize the effectiveness of our actions, ASM has joined the CDP supply-chain program at the Lead level. CDP is a charity that runs the global disclosure system for companies and others to manage their environmental impact. It is the gold standard of environmental reporting.
Our goal is to promote transparency in sustainability reporting as much as possible. To provide the visibility we need to better understand our supply chain GHG emissions, from 2022 onwards we require all our critical and strategic suppliers to complete the CDP Climate Change disclosure annually. In 2023, 88% did so, sharing their data with us.
Going forward, we expect to increase the percentage of suppliers completing the disclosure. This will further improve the visibility and quality of our Scope 3 emissions data. In turn, that will provide new insights and opportunities to improve our own actions and progress toward our Net Zero by 2035 target.
Our first ASM Supplier Sustainability Summit in Suwon, South Korea.
In November 2023 we showcased the key priorities of our ESG strategy and our efforts toward a sustainable supply chain, aiming to accelerate and expand our positive impact hand in hand with our suppliers. The event was attended by our most critical suppliers in Korea, with 30 companies represented and nearly 60 attendees.
Sustainability
At ASM, we are committed to upholding high standards in sustainability, labor and ethics practices.