The political push-back we’re seeing in the US, with the advent of the Trump administration, is mirrored by startling research conducted by the responsible investment campaign group, ShareAction.
According to its research of 279 environmental, social and government (ESG) shareholder resolutions put forward at general meetings across 2024 just 1.4 per cent secured majority support. Only four years ago that figure had topped 20 per cent.
It also noted a growing split between the US and Europe. ShareAction found that among asset managers 81 per cent in the UK and Europe supported ESG proposals, while in the US the figure was just 25 per cent.
Within the global electronics industry more sustainable manufacturing is seen as being critically important at a time when demand for electronics is rising.
The industry has focused on the reduction of its environmental impact and ensuring its compliance with stricter forms of legislation, but could the changing political climate have an impact on that approach?
In terms of manufacturing sustainable improvements often tend to go hand in hand with operational cost reductions, so to that end the implementation of a more sustainable manufacturing process is not only desirable but for many companies remains financially critical.
Energy and water usage in the semiconductor industry, for example, is projected to grow at a CAGR of 12% and 8% between 2025-2035, so efficient management strategies are seen as being crucial for the wider health of the industry.
IDTechEx recently released a market report looking at the electronics market. The size of the market is vast, with integrated circuits (ICs) being the third most traded product globally, so the report suggested that there were significant opportunities for sustainable electronics innovation.
Conventional electronics manufacturing is extremely wasteful, however, with many harmful chemicals, materials, and manufacturing processes, and the report suggested that there were opportunities to, ‘mitigate potential environmental damage from low-temperature processing, optimisation or elimination of superfluous wasteful steps, recycling and re-using materials (where possible), and the adoption of novel approaches with the potential to replace conventional manufacturing steps.’
"Barriers to sustainable electronics remain, such as capital costs and the complexity of the integration of new methods into existing manufacturing techniques,” explained Thomas Bithell, Technology Analyst and author of this report. He continued, “A key driver for green electronics will be legislation. This includes new Ecodesign for Sustainable Products Regulation (ESPR) and digital product passports (DPP) legislation coming into effect in Europe. The electronics supply chain flows globally, resulting in localised legislation having a global impact. As emissions from the electronics manufacturing industry grows, action to adopt sustainable electronics manufacturing is vital."
One of Trump’s key economic proposals has been the repeal or substantial revision of the Inflation Reduction Act (IRA), introduced under President Biden, that has provided billions in subsidies, tax incentives, and credits to the US manufacturing sector and which has benefitted high-tech in particular.
There have to be concerns that should the IRA be repealed or amended it could have a profound impact on US factory construction and investment in green technology, where tax credits and grants have aided companies looking to invest in the US, in particular in large-scale projects in renewables and technology and ultimately this could impact the US’s climate goals.
Renewable Power
Here in Europe investment continues apace. STMicroelectronics and TotalEnergies recently signed a physical Power Purchase Agreement (PPA) in which TotalEnergies will supply renewable electricity to ST’s manufacturer’s sites in France.
A 15-year contract, it commenced in January 2025 and represents an overall volume of 1.5 TWh.
The deal sees TotalEnergies providing STMicroelectronics with the renewable power (including the guarantee of origin) produced by two recently commissioned wind and solar farms of 75 MW. This power comes with structuration services to transform intermittent production in a constant volume (baseload) of green electricity. It's the first time in France that such a 15-year contract has been provided.
"This agreement with STMicroelectronics demonstrates our ability to provide long-term and innovative clean firm power solutions tailored to our customers' needs," said Sophie Chevalier, Senior Vice President Flexible Power & Integration at TotalEnergies. "TotalEnergies aims to be a preferred partner to support tech industry players with their decarbonisation efforts.”
According to Geoff West, EVP and Chief Procurement Officer at STMicroelectronics, “This first PPA in France marks yet another important step towards ST’s goal of becoming carbon neutral in its operations (Scope 1 and 2 emissions, and partially scope 3) by 2027, including the sourcing of 100% renewable energy by 2027.” He continued,“PPAs will play a major role in our transition, and we have already signed several to support ST’s operations in Italy and Malaysia.”
For many companies, greater sustainability in manufacturing and supply chains aren't just optional, but crucial as it enables them to reduce waste, cut energy use and improve efficiencies.
The Science Based Targets initiative (SBTi) is a corporate climate action organisation that provides a clearly defined pathway for companies focused on delivering deep decarbonisation of current business processes and decoupling business and revenue growth from future increased emissions.
It recently approved onsemi’s near-term science-based emissions reduction targets providing validation of onsemi’s target for greenhouse gas (GHG) emissions that are aligned to the ambition of limiting the global temperature rise to 1.5°C.
onsemi is committed to reducing absolute scope 1 and 2 GHG emissions 58.8% by 2034 from a 2022 base year and reducing absolute scope 3 GHG emissions from fuel- and energy-related activities 35% within the same timeframe. Finally, 71.3% of its suppliers by emissions, covering purchased goods and services, capital goods and upstream transportation and distribution, will have science-based targets by 2029.
The approval of these targets provides onsemi with transparency and third-party accountability for its efforts to reduce GHG emissions, ensuring that its sustainability initiatives are both credible and measurable.
“At onsemi, our broad range of intelligent power and sensing solutions contribute directly to mitigating global warming catastrophes and creating a more sustainable future,” said Hassane El-Khoury, president and CEO, onsemi. "Achieving validation of our near-term science-based emission reduction targets by SBTi highlights our commitment to delivering the latest energy efficient semiconductor technologies in the most sustainable way.”
Conclusion
Many companies in the sector remain focused on prioritising sustainability and encouraging greater decarbonisation via various initiatives. A major sustainability transition is certainly underway, and it is radically altering the global economy.
The forces that are driving this change are probably unstoppable, whether that comes from government policy, technological innovation, the behaviour of consumers or market influences, and over the coming years we are likely to see accelerating change in terms of manufacturing on what many expect to be the same scale as the first industrial revolution but at the speed of the digital revolution.
