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 2022, 51% 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.
At ASM, we are committed to upholding high standards in sustainability, labor and ethics practices.