GlobalData offers a comprehensive analysis of ASML, providing key insights into its Environmental, Social, and Governance(ESG) factors. By closely monitoring and aggregating mentions of Net Zero and associated ESG keywords, GlobalData delivers valuable information on ASML’s ESG performance. GlobalData’s company profile on ASML offers a 360-degree view of the company, SWOT analysis, key financials, and business strategy including insights on ESG implementation among other information. Buy the report here.
ASML, a Dutch semiconductor equipment manufacturer, has set net-zero targets to reduce its carbon footprint and mitigate climate-related risks. ASML's latest filings mentioned the keywords 'Emissions' and 'Carbon Footprints' most number of times in relation to 'Net Zero'.
According to its TCFD Report: climate-related risks and opportunities, the company plans to achieve carbon neutrality with net zero emissions in our operations (scope 1 and 2) by 2025, achieve net zero emissions in our supply chain by 2030, and net zero emissions in the use of its products by its customers (scope 3) by 2040. ASML's carbon footprint reduction strategy includes reducing direct emissions from fossil fuels (scope 1), indirect emissions from electricity consumption (scope 2), and indirect emissions in its value chain (scope 3) from upstream supply chain and downstream use of its products by customers. The company's scope 1 and 2 emission reduction targets are consistent with reductions required to keep warming to 1.5°C and are approved by the Science Based Targets initiative (SBTi) under the category 'near-term'.
ASML's sustainability performance is benchmarked by the annual comprehensive Dow Jones Sustainability Index (DJSI), which assesses more than 20 ESG topics, including climate change, with the best of the semiconductor industry. The company's Supplier Sustainability Program addresses environmental risks in its tier-1 supply chain by reducing the carbon footprint. ASML measures its (ultra-pure) water consumption at its sites, the percentage of recycled and reused water, and the water intensity. Limiting its carbon footprint and energy consumption along the value chain decreases the company's vulnerability to both transition and physical risks. According to the ASML Annual Report 2022, the company reported 38.1 kt Scope 1 and 2 CO2e emissions and 11.9 Mt Scope 3 CO2e emissions in 2022.
ASML's carbon footprint reduction strategy demonstrates its goal to help limit global warming to 1.5°C, thereby managing its climate-related risks and opportunities. The company has identified potential climate-related opportunities and risks, including increased demand for low-carbon technologies that will impact the demand for semiconductors and increased operating costs due to a price on carbon in a 1.5°C scenario. ASML's product energy efficiency roadmap aims to reduce the carbon footprint of its products and enable low carbon technology and products in the value chain.
In conclusion, the company has taken additional steps to reduce its carbon footprint, including investments in wind turbines, solar panels, and electric vehicles. ASML's factories in Linkou, Tainan, and San Diego would be most exposed to the climate change effects that have the highest potential to disrupt its operations, including droughts and tropical cyclones. The company identifies, assesses, and manages climate-related risks and has defined ESG Sustainability KPIs for its nine ESG Sustainability strategic themes, including 'Energy Efficiency and Climate Action'.