In April of this year Intel committed to reach net-zero operational greenhouse gas (GHG) emissions by 2040, "even as we significantly expand our global operations," CEO Pat Gelsinger wrote in the chipmaker's corporate responsibility report.

However, Intel has yet to commit to reaching net-zero scope 3 emissions, or supply chain emissions, which were roughly 10-times higher in 2021 than its scope 1 and 2 emissions combined.

Intel says its scope 3 strategy focuses on partnering with suppliers and customers to limit scope 3 emissions. While Intel does measure and report its scope 3 data in sum and by source, it has not yet announced a specific commitment to reach net-zero scope 3 emissions that's on par with its operational target.

This is especially relevant considering the vast difference between the company's supply chain and operational emissions. Intel reported 28.9 million metric tons of CO2 in scope 3 emissions during 2021 alone. Its total reported scope 1 and 2 emissions were 3.3 million metric tons of CO2.

"We have made incredible strides over the past year, but there is still much to do. We are just getting started," Gelsinger wrote at the beginning of the report.

As an interim target, Intel aims to see a 10% reduction in its absolute scope 1 and 2 emissions from 2020 to 2030. But according to its latest report, the chipmaker's scope 1 and 2 emissions actually increased 14% during 2021 from a 2019 baseline, "driven by the complexity of current manufacturing process technologies," the report reads. However, Intel reported that its total GHG emissions under all three scopes decreased 2% in 2021 compared to 2020.

Intel plans to reach its emissions targets by improving energy efficiency and lowering the emissions associated with Intel's platforms and products. Collaborating with customers and partners in the industry will help Intel expand its reach and contribute to lower emissions across the whole tech ecosystem, Gelsinger said.

According to Dell'Oro analyst Lucas Beran, "measuring or estimating scope 3 emissions requires a much more sophisticated process, which involves collaborative efforts from partners and customers and is still being defined. The fact that Intel is making the effort to analyze their impact up the supply chain and down to their customers product usage, showcases a genuine effort to understand the end-to-end sustainability impact of their business."

Intel will begin reporting on its 2040 emissions target that addresses scope 1 and scope 2 emissions next year.

Intel's Progress

Intel claims that since 2000, its scope 1 and 2 emissions have decreased by about 19% on an absolute basis despite its significantly expanded manufacturing capacity.

Furthermore, Gelsinger said that commitments to sustainable manufacturing and "aggressive environmental targets" show the company is "deeply committed to being good neighbors in the communities where we operate."

In addition, Intel claims it reached net-positive water use in three countries, used 80% renewable energy globally, and only sent 5% of its total waste to landfills. "We are also continuing our work on sustainable chemistry, including ongoing efforts to refine the chemical footprint methodology for use in evaluation of the chemical supply chain," Gelsinger touted.

Beran noted that Intel's "sustainability initiatives focused on “product energy efficiency”, “water stewardship”, and “waste and circular economy solutions” are very much focused on reducing scope 3 GHG emissions and are likely to have a much larger impact than any goals or progress associated with a reduction in their scope 1 or 2 GHG emissions."

On the social responsibility side, the chipmaker says it's working with the U.S. National Science Foundation to invest $100 million over the next decade to support research and workforce development in semiconductor manufacturing. This investment will create education and research collaborations with universities, technical educators, and community colleges in Ohio, where Intel plans to build a $20 billion "mega fab."

This article was updated on May 13, 2022, at 1:55 pm MT.