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Dalip Sharma from Delta Electronics shares insights from his company’s efforts to decrease carbon emissions.
The EU’s goal of achieving net-zero greenhouse gas emissions by 2050 is approaching a significant milestone in 2025. This marks the halfway point and will also be the first year for companies to report on their efforts in reducing carbon emissions under the EU’s Corporate Sustainability Reporting Directive. This task may prove to be challenging for many as it will require them to not only focus on their own sustainability efforts, but also those within their supply chain.
According to Dalip Sharma, the President and General Manager of Delta Electronics EMEA, implementing corporate climate initiatives can invigorate a company’s journey towards sustainability. Delta is a part of RE100, a group of companies committed to using 100% renewable energy, and also participates in other sustainability groups. Sharma discusses how this membership allows Delta to both gain knowledge from others and share their own experiences with their peers.
Can you explain Delta’s progress towards achieving net-zero emissions so far?
Delta has been dedicated to fighting against climate change through actively striving for energy preservation and decreasing carbon emissions.
In 1971, our founder Bruce Cheng established Delta in Taiwan. Over time, Taiwan became a global powerhouse in the electronics and technology industry. However, the country’s fast-paced economic development caused energy shortages, prompting Taiwan to increase its use of fossil-fuel-fired power plants. This had a significant negative impact on the environment.
Mr Cheng held the belief that it was important for Delta to expand its business in a responsible manner and prioritize environmental care by implementing energy-efficient practices and products. As a result, sustainability became a fundamental aspect of our core values.
Delta has been included in the Dow Jones Sustainability Indices for 12 years in a row and has consistently achieved the top score in the electronics equipment, instruments, and components industry for seven consecutive years.
In 2015, our company from Taiwan was the first to successfully complete the evaluation of the Science Based Targets Initiative (SBTi). Our initial goal was to decrease our carbon footprint by over 50% by 2025. However, we surpassed this target ahead of schedule in 2021, achieving a 71% reduction. Our new objective is to decrease our emissions by an additional 90% across Scopes 1-3 by 2030.
In what ways has being a member of RE100 impacted your endeavors towards achieving net zero?
Similar to others in our field, our path towards achieving climate neutrality has had its successes and challenges. This is where initiatives like RE100 play a crucial role. They act as guides and boundaries, while also offering a platform for education and assistance.
We were the pioneer in Taiwan’s high-tech manufacturing sector to pledge to reach the RE100 goal by 2030. Our company’s goal aligns with the mission of RE100, which is to offer cutting-edge, eco-friendly, and energy-saving solutions for a brighter future. We chose to join RE100 because, as an energy solutions supplier, our electricity use accounts for the majority of our carbon emissions. Therefore, transitioning to completely renewable energy is our top priority.
Since becoming a part of RE100 in 2021, we have gained valuable insights from our peers regarding their methods for sustainable sourcing. In return, they are eager to learn from our own experiences. Our chief sustainability officer and corporate ESG team have presented at over 1,000 events to share our knowledge.
As a part of your pledge to RE100, you have implemented a system of internal carbon pricing. Can you explain how this operates?
Our system for internal carbon pricing assigns a cost to the carbon emissions produced by using non-renewable electricity in our offices, plants, and R&D centers around the world.
Our organization has established a fixed internal carbon price of $300 per metric ton for emissions, taking into account both internal and external expenses related to our offices and production facilities. The funds collected are allocated to a “green fund” that can be utilized for sustainability initiatives within our company, furthering our efforts towards decarbonization.
What progress have you made towards achieving the goal of using 100% renewable energy by 2030?
Delta’s goal is to achieve 80% renewable electricity by 2025 and 100% by 2030 on a global scale. In the previous year, we reached 63%, a significant increase from 46% in 2020.
By the year 2025, our goal in Europe, the Middle East, and Africa is to solely utilize renewable electricity. As of 2022, we have achieved 93 percent of this target.
Whenever feasible, we incorporate solar photovoltaic panels onto our structures in order to offset a significant portion of our energy usage.
If we are unable to produce our own energy, we use a combination of methods to obtain it. This includes making agreements with local renewable energy generators and selecting eco-friendly rates from the utility provider.
Although our main focus is on improving energy efficiency, we also have plans to gradually increase our use of self-generated solar power. Delta has currently constructed 32 certified green buildings and two high-efficiency data centers.
Our company, Delta, has developed energy-saving products that greatly improve our energy efficiency. For instance, at our EMEA headquarters located in the Netherlands, we utilize our Energy Storage Systems to store extra solar energy and utilize it during times of high demand. This has resulted in a significant 16 percent decrease in our energy expenses.
In anticipation of the future, Delta has implemented its latest solution for electric vehicle charging infrastructure in the Netherlands.
What are three suggestions you have for companies that are just embarking on this journey and need to quickly comply with strict regulatory deadlines?
It is crucial to increase knowledge of sustainability within the company. Providing training can assist employees in understanding their role in promoting sustainability within the organization, and help them recognize that they will ultimately reap the benefits.
Establishing benchmarks for performance indicators guarantees that advancements, no matter how small, are able to be monitored and a system for receiving input is established. Financial metrics like implementing carbon pricing within the company or providing rewards for reducing energy consumption can also enhance dedication and hasten the shift.
Ultimately, participating in corporate environmental programs like SBTi and RE100, as well as those specific to your industry, can greatly benefit you by providing a supportive network to help tackle challenges together.
Please refer to www.delta-emea.com for additional details.
Source: independent.co.uk
