Under the Greenhouse Gas Protocol (GHGP), all companies are required to calculate and report their emissions, including those of all members of their downstream and upstream supply chains. These are called Scope 3 emissions, and are divided into 15 Categories, including Category 11 - Use of Sold Products, a heavy lift for many small (and often large) companies. Measurement and improvements in vendor Scope 3 emissions are already influencing vendor selection and sourcing decisions, and experts agree that this will continue to increase. Upstream suppliers have typically relied on broad GHGP guidance to follow in making their calculations. For the semiconductor sector, and its well-documented, incredibly complex supply chain, there was no guidance accounting for the nuances within the industry to standardize calculations. Work began a year-and-a-half ago to change that.The Semiconductor Climate Consortium (SCC)’s Scope 3 Working Group compiled, verified and published a guidance document for calculating Scope 3, Category 11 emissions. The guidance document helps standardize emissions reporting and calculation methods and accounts for the unique requirements and circumstances of the semiconductor value chain.The SCC 3.11 guidance explicitly highlights where it maintains consistency with the existing guidance (e.g., GHG, SBTi, US EPA) and where it expands on that guidance to close a gap relevant to one or more of the semiconductor industry segments. The document was developed with the help of the Sustainability Consulting Group ERM, as well as excellent participation from the Scope 3 Working Group members, including representation from every segment of the semiconductor value chain from IDMs to foundries, fabless companies, chemical gas and materials companies, OSATS, and equipment manufacturers.Some of the significant areas considered while compiling the guidance included:Boundaries, especially around products and direct use-phase emissionsProduct lifespan, especially across the different sectors of the value chainMarket based emissions guidanceIncorporating grid decarbonization into the inventory and calculationsThe document includes several useful calculation examples, including direct use phase emissions and direct and indirect energy consumption. The examples help to make the guidance more tangible and practical in real world application.We were pleased to collaborate with our industry colleagues on developing this guidance as we work to align with others in the industry and minimize our reporting via efforts by the SCC. Download the Guidance Document.For further insights into the Guidance, the authors, including experts from ERM recently hosted a webinar. Register to watch the recording. Sara Turner is Climate Program Manager at Lam Research, and Mike Halblander is Product Marketing Manager at Teradyne. Both Turner and Halblander lead the SCC’s Scope 3 Working Group.
