Scope 1 and 2, and Greenhouse gas emissions
As a global company with a footprint across all regions, we are very aware of how critical it is for every company, organization, and individual to take whatever steps they possibly can to help humanity progress toward reducing greenhouse gas emissions.
This year, we established a baseline for our greenhouse gas (GHG) emissions. In 2023, we will set our GHG emission reduction targets and outline how we plan to achieve them in the following Sustainability Report.
Our GHG emission data collection process is in its infancy; thus, we are taking steps to improve our worldwide emissions data management system.
u-blox 2022 Greenhouse gas emissions (GHG) Scope 1 & 2
According to the Greenhouse Gas Protocol (GHG) standard we started by identifying emissions associated with operations, categorizing them as direct and indirect emissions, and choosing the scope of accounting and reporting for indirect emissions.
Scope 1: Direct GHG emissions
Direct GHG emissions occur from sources owned or controlled by our organization u-blox. At u-blox, the main emissions sources for this scope were identified with local on-site heating and cooling systems, as well as with mobile combustion of owned vehicles. The following picture shows the details.
Scope 2: Energy indirect GHG emissions
Scope 2 accounts for GHG emissions from the generation of purchased electricity and heating consumed on company premises; we used the approach to consider u-blox sites based on their “materiality,” i.e., we collected data for all sites with >= 50 employees.
Data for smaller locations will be summarized and extrapolated based on the results of bigger sites (refer to the following picture).
The location-based calculation refers to emission factors reflecting the energy supplier and production mix with reference to national, sub-national, or regional grid average generic data.
Instead, the market-based calculation adds granularity on top of the above data by considering the characteristics of the energy supply, such as the split of CO2-neutral energy, its supplier, and certified origin. It is therefore considered a higher quality calculation than the location-based one.
Learn more about our Net Zero status as of September 2023.
Reducing our CO2 emissions as a fabless manufacturer
As a fabless semiconductor manufacturer, our direct impact on CO2 emissions is low compared to a traditional semiconductor manufacturer fabricating in-house. However, we understand that much of our environmental footprint comes from indirect CO2 emissions through the manufacturing of our products by our manufacturing partners.
Flex Ltd., our main module product manufacturer, reported their climate change data on CDP10 an “A-” rating for 2022, unchanged as compared to the previous year, 2021. Firmly committed to embedding sustainable practices throughout its operations, Flex builds more than 90% of the u-blox module products using 100% renewable energy. In addition, Flex was recognized by Ethisphere, a global leader in defining and advancing the standards of ethical business practices, as one of the 2023 World’s Most Ethical Companies, along with 135 other organizations across 19 countries and 46 industries.
10 the not-for-profit charity that runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts. A CDP score (from D- to A) provides a snapshot of a company’s disclosure and environmental performance; in order to receive an A- (highest score) or B, companies must demonstrate both awareness of their impacts on the environment, deforestation and water security, and appropriate actions taken to reduce these in line with the 1.5-degree trajectory laid out in the Paris Agreement.
Amkor Technology Inc., our main chipset product manufacturer, also reported their climate change data on CDP with a “B” rating for 2022, unchanged as compared to the previous year, 2021.
As for our silicon wafer producers, Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC) received a score of (A-); however, GlobalFoundaries, Inc. had not received a score by the time our Sustainability Report was published, despite submitting their climate change data to CDP for 2022.
u-blox partners with top tier manufacturers in our industry with leading environmental compliance and governance systems in place to minimize our indirect impact on the environment.
Minimizing business travel emissions
In 2022, we developed our Prevent, Minimize, Offset sustainability recommendations and have now launched these in early 2023 across four u-blox sites endeavoring to minimize our business travel emissions.
We asked u-blox employees worldwide to select a carbon removal project from myclimate which extracts CO2 from the atmosphere and stores it permanently. They chose a reforestation project in Nicaragua.
Removing carbon with myclimate by planting trees in Nicaragua1
Project type: Land Use and Forestry
Project location: San Juan de Limay and Somoto, Nicaragua
Project status: In operation, credits available
Annual CO2 reduction: 624,216 t (across 15 years)
This community-based reforestation initiative is situated upon a critical watershed that feeds into Nicaragua’s most important estuary, the Estero Real. This estuary is home to one of the biggest extensions of mangroves and migratory birds in the region and has been recognized by the Ramsar Convention on Wetlands of International Importance. By reforesting this region, the program plays a vital role in regulating the hydrological cycle, providing important water and biodiversity benefits both locally and internationally, and improving the quality of life of smallholder farmers.
1 Source: https://www.myclimate.org/information/carbon-offset-projects/detail-carbon-offset-projects/nicaragua-forestry-7186/
Environmental training and awareness at u-blox
u-blox’s commitment to protecting the environment and our awareness that our operations can have a direct and indirect impact on the environment is clearly communicated in the u-blox Code of Conduct document. Every new employee is required to review the Code of Conduct, and an annual review process is in place for all existing employees.
In 2021, we introduced an e-learning training program available on our corporate knowledge base platform to inform both new and existing employees on the critical aspects of the u-blox Environmental Management System. In 2022, 154 u-blox employees working closely with the material data compliance report topic completed or refreshed their EMS training for the first time.