A new commitment to achieve net zero emissions by 2050 from global electronics manufacturer Hon Hai Precision Industry Co. (Foxconn) has been welcomed by institutional investors and stewardship providers engaging with the company through the Climate Action 100+ initiative.
The company has issued a press statement in response to investor engagement through Climate Action 100+, stating that it aims to achieve the goal of net zero greenhouse gas emissions by 2050 across its value chain.
In the announcement, Hon Hai specially committed to:
- Comply with the carbon emission policies of local governments where its factories are located.
- Ensure its greenhouse gas emissions policies across the value chain are consistent with the goals of the Paris Agreement and aim to achieve the goal of net zero greenhouse gas emissions by 2050.
- Aim to take actions to fulfill the three headline goals of Climate Action 100+:
1. Strengthen climate change governance
2. Take action towards reducing greenhouse gas emissions across the value chain
3. Provide disclosures in accordance with the Task Force on Climate-related Financial Disclosure recommendations (TCFD).
Commitments to net zero emissions were identified as a key area for engagement between investors and companies through the Climate Action 100+ Net Zero Company Benchmark, which was communicated with companies in September.
Hon Hai has responded proactively to Climate Action 100+ engagement, through which investors have been working directly with the company on expectations for climate change reporting and target setting.
EOS at Federated Hermes and Cathay Financial Holdings are lead institutions undertaking engagement with Hon Hai as signatories to Climate Action 100+. Engagement with Hon Hai under the initiative is coordinated by the Asia Investor Group on Climate Change (AIGCC).
Hannah Shoesmith, Associate Director of Engagement, EOS at Federated Hermes, said: “We commend Hon Hai on its commitment to net zero greenhouse gas emissions by 2050 and look forward to continuing our engagement with the company on this important work.”
Sophia Cheng, Chief Investment Officer, Cathay Financial Holdings, said: “We congratulate Hon Hai on their net zero announcement by 2050. As the largest global technology manufacturing provider, this will have a significant positive impact on the supply chain that many other companies and individuals, and the planet, will now benefit from.”
Rebecca Mikula-Wright, AIGCC Executive Director and Climate Action 100+ Steering Committee member, said: “Investors look forward to continuing to engage with Hon Hai as the company further develops short and medium-term targets to achieve net zero by 2050. We welcome Hon Hai’s effort in ensuring that the net zero goal is being implemented across the value chain consistent with the goals of the Paris Agreement.”