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In myriad ways, IoT technology can empower individuals, communities, companies and countries to make more sustainable choices. For example, smart home devices can provide near real time energy consumption data encouraging users to reduce their carbon footprint. In industry, the combination of data and automation technologies meanwhile can improve resource management, save energy and reduce emissions.
Nordic Semiconductor—a global leader in low power wireless IoT connectivity solutions—is helping to drive this innovation. For example, Nordic’s solutions help customers create applications that use less energy and optimize resources, reducing the environmental impact of their products.
At the same time, industry leaders like Nordic must also acknowledge and uphold their own Environmental, Social, and Governance (ESG) responsibilities. While there are basic regulations that semiconductor chip suppliers should follow to reduce their environmental impact, the urgency of sustainability challenges means they should aim to do more than just meet these minimum standards.
Improving ESG results
That’s why Nordic is continuously looking for ways to make a meaningful ESG difference. The company has had a strong sustainability program for many years, with a vision of sustainability that defines business success by combining responsible practices with our commercial activities.
Nordic is also a member of the Responsible Business Alliance, and works to advance the UN Sustainable Development Goals (SDGs) through its business operations. Created in 2015, these 17 goals encourage organizations to improve the sustainability of their practices and investments.
Nordic’s sustainability program aligns with global climate goals, meets regulations, and addresses stakeholder expectations. More importantly, it aims to support long-term business success and contribute to a healthier planet.
Minimizing plastic waste
One small but meaningful step towards sustainability has been Nordic’s transition to using component reels made from recycled plastic – becoming one of the first semiconductor companies to do so. To reach this milestone, Nordic had to test its recycled plastic component reels and ensure they performed as reliably as traditional non-recycled equivalents, meeting all industry standards. This means the packaging didn’t break during shipping, protected Nordic’s valuable semiconductor parts, and didn’t jam when fed into high-speed PCB placement machines.
The switch to recycled plastic will reduce plastic waste by almost 15,000 kilograms per year. This achievement is especially significant because Nordic’s components are used in hundreds of millions of devices annually, making their customers some of the largest users of wireless IoT semiconductor chips in the world. And as the IoT continues to grow, so will the volumes of these chips, so the sustainability benefits will only increase over time.
GHG emission reduction targets
Meanwhile, Nordic’s ambitious greenhouse gas (GHG) emission reduction targets have been approved by the Science Based Targets initiative (SBTi) – a global organization created to help companies align their targets with the latest climate science. The SBTi praised Nordic's goal of reaching net-zero emissions by 2050, the most ambitious target within the SBTi framework
This recognition represents an important achievement for Nordic. It confirms our climate strategy and commitment to reducing emissions are consistent with the Paris Agreement's aim to limit global warming to 1.5° C.
In the short term, Nordic aims to reduce its direct and indirect GHG emissions from energy usage by 60 percent by 2030, using 2019 as the base year. Nordic will also reduce its emissions intensity (emission by value added) for other indirect emissions by 60 percent. This will be achieved by reducing energy use, increasing renewable energy in its operations and collaborating with stakeholders across the value chain.
In the longer-term, Nordic is committed to achieving net-zero emissions by 2050, ensuring any remaining GHG emissions in its value chain will be offset in accordance with SBTi criteria.
One of the world’s most sustainable companies
Thanks to these initiatives and a strong commitment to sustainability, Nordic was recently ranked among the top 500 ‘World’s Most Sustainable Companies’ by TIME magazine and its research partner, Statista. More than 5,000 of the world’s largest and most influential companies were assessed in a detailed four-step process focusing on over 20 key data points. This provided an overview of a company’s disclosure and environmental performance, emissions and energy intensity, as well as employee turnover and work safety.
This recognition not only showcases Nordic’s commitment to meeting sustainability regulations but also emphasizes our goal to go above and beyond standard sustainability efforts to achieve net-zero emissions.
Nordic believes in demonstrating that innovation and environmental responsibility can work together to drive business success and highlighting the importance of integrating sustainability into the core strategies of technology companies.
