TE Connectivity Exceeds Sustainability Goals, Signals Shift to Scope 3 Reduction
Event summary
- TE Connectivity exceeded its 2025 goal of sourcing 80% of electricity from renewable sources, achieving 87%.
- A 1.1 MW solar system at the Lamphun, Thailand facility generates 15% of the site’s energy and reduces emissions by 520 tons annually.
- The company reduced Scope 3 greenhouse gas emissions by 17% since 2022, targeting a 30% reduction by 2032.
- TE doubled the number of zero-waste-to-landfill sites to 56, diverting 93% of waste.
The big picture
TE Connectivity's exceeding of its 2025 sustainability goals demonstrates a growing trend among industrial technology companies to prioritize ESG initiatives. While the company's focus on Scope 3 emissions reduction is commendable, it also signals the increasing complexity and cost associated with achieving ambitious climate targets. This proactive approach could enhance TE’s brand reputation and attract investors increasingly focused on sustainable investments, but also exposes the company to risks associated with supply chain decarbonization.
What we're watching
- Supplier Engagement
- The company's success in reducing Scope 3 emissions will hinge on its ability to influence and collaborate with suppliers, potentially creating supply chain vulnerabilities if those partners lag in their own sustainability efforts.
- Goal Setting
- TE's shift towards focusing on water and waste management suggests a potential plateau in easily achievable renewable energy targets, requiring more complex and costly solutions going forward.
- Regional Impact
- The localized initiatives in Thailand, Czech Republic, and Morocco highlight the importance of regional adaptation and regulatory compliance, which could impact future site selection and investment decisions.
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