AMD is a high-performance and adaptive computing leader, designing and developing central processing units (CPUs), graphics processing units (GPUs), and other high-performance computer solutions for various markets including gaming, data centers, and AI.

Positive signals

By 2023, 84% of AMD’s manufacturing suppliers had public greenhouse gas emissions reduction goals, with a target of reaching 100% by 2025.

In 2022, AMD achieved a 19% reduction in operating emissions compared to its revised 2020 baseline, despite the increased energy footprint from recent acquisitions.

AMD has set a science-based target to achieve a 50% absolute reduction in Scope 1 and 2 greenhouse gas emissions by 2030, using a 2020 baseline that includes the impact of its acquisitions of Xilinx and Pensando. The company’s 2020 base year value is 61,754 metric tons CO2e, with a 2030 target of 30,877 metric tons CO2e, aligning with the Science Based Targets initiative (SBTi) 1.5°C pathway.

AMD is actively participating in the SEMI Climate Consortium to promote renewable energy infrastructure in Taiwan, where most AMD wafers are manufactured, and aims to double the renewable energy use of its primary foundry manufacturing suppliers from 2020 to 2025.

AMD’s greenhouse gas reduction goals are aligned with the Science Based Targets initiative’s (SBTi) 1.5°C minimum target ambition, requiring a 4.2% linear annual reduction in emissions.

Concerns

AMD’s manufacturing suppliers are not yet fully aligned with its climate goals, with only 84% having public GHG reduction targets as of 2023, short of the 100% goal set for 2025.

AMD faces systemic industry challenges in mitigating forced labor risks within its supply chain, a concern acknowledged in its corporate responsibility reporting and shared across the semiconductor sector.

AMD’s supply chain, particularly silicon wafer manufacturing, is a significant source of greenhouse gas emissions, with 80% of the semiconductor industry’s emissions stemming from the value chain, presenting ongoing challenges for decarbonization.

Despite supplier engagement, AMD’s absolute supply chain (Scope 3) emissions have increased due to higher energy demands from advanced technology nodes, highlighting the difficulty of decoupling growth from emissions in the semiconductor sector.

The company’s Scope 3 emissions, which include supplier and product use emissions, remain a material risk for AMD’s overall climate impact, as decarbonizing the semiconductor value chain is a complex, industry-wide challenge.