WHEREAS: The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 in order to limit global warming to 1.5°C and every incremental increase in temperature above 1.5°C will entail increasingly severe physical, transition, and systemic risks for companies and investors alike. Up to 10% of global economic value could be lost by 2050.1
In its 10-K, Texas Instruments (“the Company”) acknowledges that climate-related physical and transition risks may disrupt its operations, thereby impacting its financial position. However, the Company lacks long-term targets in line with Science Based Targets initiative methodologies, comprehensive Scope 3 disclosure, and Scope 3 emissions reduction targets. To date, Texas Instruments only aims to reduce Scope 1 and 2 greenhouse gas emissions by 25% by 2025.
By contrast, industry peers Advanced Micro Devices, Analog Devices, Applied Materials, Lam Research, and QUALCOMM disclose their relevant Scope 3 emissions and have set or committed to set science- based targets through the Science Based Targets initiative.
Investors increasingly seek disclosure of how companies are addressing climate risks and opportunities to position their business for success in the transition to a low carbon economy. Emissions-reduction targets and climate transition plans provide investors with valuable insight. Such plans should detail the forward-looking, near-term, and quantitative actions the company will take to achieve its sustainability goals.
Investors believe Texas Instruments must take additional action to address its climate impact and mitigate risks, including adopting 1.5°C-aligned science-based targets for its full carbon footprint and developing a climate transition plan.