The sounds of late summer are no longer only the chirping of crickets or crashing of waves but also the rattling of air conditioning. With the National Weather Service’s recent forecast of higher-than-average temperatures through October, global warming will likely lead to global cooling inside the home.
Soaring temperatures are just one of the factors driving the demand for electricity. Data centers, electric vehicles, and factories all contribute to the U.S. Department of Energy’s expectation that electricity demand will grow 15% to 20% in the next decade.
Yet, as we rely more on the AC to keep us cool, we also rely on an electric grid that is increasingly overburdened and threatened by extreme weather.
Renewable energy is becoming increasingly important to strengthen grid resiliency and meet ever-increasing demand. A recent New England heat wave proved how renewable energy sources can keep air conditioners on, cut climate emissions, and save customers money. Solar and battery storage supplied additional wattage and an estimated $20 million in savings for consumers. Even residents in America’s heartland see the benefits of renewable energy, including Iowa that gets nearly two-thirds of its electricity from wind turbines while paying some of the lowest power bills in the nation.
Microchips, macro impact
The growing importance of renewable energy must be met with the materials to support its construction. Semiconductors are a key piece of the puzzle. Solar and wind infrastructure are built with semiconductors, which also ensure that the power renewable energy generates is maximized.
Unfortunately, semiconductors are threatened by the climate problem they help solve. A recent study from PwC reported that one-third of global semiconductor production is at risk from climate disruption by 2035, rising to 58% by 2050 without action. Meanwhile, emissions from the semiconductor industry are predicted to grow by 8% annually until 2045.
Green Century powers climate action in the semiconductor sector
The semiconductor sector must prepare for the changing climate and work to reduce its contribution and impact. Green Century recognized this in 2024 when it engaged key players on advancing their climate commitments. The result was Green Century negotiating agreements with five semiconductor companies to publish climate transition plans, or roadmaps for reducing their climate emissions.
A climate transition plan is an onramp from where a company starts its journey and details how it will get to its destination. These plans include specific, measurable actions and interim targets to cut emissions and address climate risk. Just like any business plan, a climate transition plan assures that a company is putting in the time and resources now that are necessary to reach its goals later.
A 2024 report by Ernst and Young found that while 83% of companies surveyed set short-term climate targets, less than half published a climate transition plan for achieving them. The companies Green Century engaged, including Intel, NVIDIA and Texas Instruments, were previously no exception to this trend. While each of the companies had existing climate goals, they lacked forward-looking action plans and milestones to mark progress prior to Green Century successfully pushing them to publish a climate transition plan.
Roadmaps that rally action
Four semiconductor companies led the charge this summer by following through on their transition plan agreements with Green Century.
Advanced Micro Devices published its complete climate transition plan outlining the steps it will take to achieve its 2030 emissions reduction goals. Texas Instruments increased the ambition of its environmental initiatives by announcing 2035 emissions reduction goals. All four companies included details on how they will increase their support to accelerate the amount of renewable electricity in the semiconductor supply chain.
Green Century will continue to push industries critical to the renewable energy transition to confirm they have plans to address their climate footprint across their business and in collaboration with their sectors.
As we continue to count on an electric grid threatened by climate change, credible commitments to decreasing emissions and bolstering renewables are what will keep companies progressing and our ACs humming all summer long.