In recent years, with the aggravation of climate change, enterprises pay more attention to ESG (Environmental, Social and Corporate Governance). ESG investment philosophy emphasizes that while seeking economic benefits, enterprises should fulfill their obligations in environmental protection, social responsibility and corporate governance.
According to the data of the White Paper on ESG Development in China in 2023, the ESG information disclosure rate of A-share enterprises in 2022 has reached 34.85%, covering four-thirds of the total market value of A-shares. It is estimated that by 2026, the scale of ESG public funds in China will reach 900 billion yuan, with a compound annual growth rate of 29.2%.
ADI, one of the global chip leaders, also actively responded to the ESG trend. At a recent media gathering, Laura, Director of Marketing Communication and Public Affairs of ADI Asia Pacific, introduced commitments and plans of ADI in ESG field in detail.
ADI launched the "Horizon Plan" to implement ESG goals from three dimensions: operation, solution and community responsibility. First of all, in terms of operation, ADI is committed to making factory operations green and environmentally friendly, while paying attention to employee health. Second, by working with customers, ADI will leverage technology and expertise to drive the development of products and applications and contribute to ESG goals. Finally, ADI encourages employees to create ESG value and contribute to society by actively participating in community activities.
Figure: ADI Horizon plans to implement ESG goals from three dimensions: operation, solution and community responsibility
In terms of carbon emissions and energy, ADI has set the goals of 100% use of renewable energy in 2025, carbon neutrality in 2030 and zero emission in the value chain in 2050. Up to now, ADI has achieved nice results in the first and second greenhouse gas emissions, reducing by 7.2%. In addition, 54% of production facilities use renewable energy.
In terms of production and operation, ADI has improved the recycling rate of water resources by designing efficient tools, installing emission reduction systems and implementing sewage reuse measures, with the goal of achieving 50% water recycling rate by 2025. In terms of waste discharge, ADI has achieved 90% of waste non-landfill, which is expected to reach 100% in 2030.
For technical, ADI not only performs ESG responsibilities internally, but also shoulders responsibilities throughout the production value chain. ADI is promoting innovation in the four major areas of "automation, electrification, linking and human health" in the innovation system, and activating edge intelligence through analog, digital and software solutions.
In the field of industrial automation, products of ADI help optimize motor performance and reduce motor energy consumption. In the energy market, solutions of ADI support efficient collection and conversion of renewable energy. In the field of connectivity, wireless connectivity technology of ADI can reduce the energy consumption of data centers.
In addition, ADI also cooperates with Woods Hole Oceanographic Institution to deeply understand the ocean and climate change through innovative technologies, and provide scientific basis for policy making. This includes monitoring the pH value of seawater to alleviate ocean acidification and exploring marine carbon capture technologies.
Efforts of ADI are not only reflected in technological innovation, but also in the active participation and donation activities of employees. The company established ADI Foundation to support employees to participate in community activities and provide assistance to community organizations through funds and resources. In F22 fiscal year, employee donations and foundation donations totaled US $2 million, benefiting more than 900 community organizations.
The ESG core team at ADI transitioned to the company's strategic team at the end of 2022 and will continue to coordinate efforts, aiding ADI in making further progress in the ESG realm
With the deepening of ESG concept, ESG development in chip industry will become the mainstream trend in the future. Chip manufacturers need to actively respond to ESG challenges, seize ESG opportunities and achieve sustainable development. By taking active ESG measures, the chip industry can achieve a win-win situation of economic and social benefits and contribute to sustainable development.
