Nvidia , Broadcom Rank Lowest Among AI Companies on Emissions

TLDRs;

• Greenpeace report ranks Nvidia and Broadcom lowest in AI supply chain decarbonization.
• Supply chain emissions account for over 80% of major chipmakers’ total footprint.
• Apple leads AI firms in renewable energy adoption and sustainability practices.
• Fabless models and fossil-heavy grids hinder AI companies’ climate progress globally.

A Greenpeace East Asia reportpublished Wednesday has spotlighted Nvidia and Broadcom as the lowest performers among leading AI and semiconductor companies in supply chain decarbonization.

The study evaluated ten major firms, including AMD, Qualcomm, Intel, Amazon, Apple, Google, Microsoft, and Meta, assessing their efforts to cut emissions and increase renewable energy usage across complex global supply chains.

According to Greenpeace, neither Nvidia nor Broadcom has set measurable targets for renewable energy adoption or net-zero emissions, leaving both companies at the bottom of the sustainability rankings. In contrast, Apple emerged as the only firm to earn a B+ grade for its climate commitments.

Supply Chain Emissions Dominate

For major chipmakers, supply chain emissions, commonly referred to as Scope 3 emissions, constitute the majority of their total carbon footprint.

In 2024, over 80% of emissions for Nvidia, Broadcom, Qualcomm, and AMD came from supplier operations rather than direct manufacturing or office energy use.

Nvidia’s Scope 3 emissions nearly doubled between 2022 and 2024, a surge that Greenpeace attributes to the company’s limited engagement with renewable energy initiatives among its suppliers. Experts warn that without proactive steps to decarbonize supply chains, such trends may continue, undermining broader corporate climate goals.

Fabless Models Create Barriers

One structural challenge for firms like Nvidia and AMD is their fabless business model. These companies design chips but rely on contract foundries, such as TSMC in Taiwan or Samsung and SK hynix in South Korea, for manufacturing.

This reliance significantly limits their ability to influence the energy sourcing and carbon footprint of suppliers directly.

Countries like Taiwan and South Korea generate a high percentage of electricity from fossil fuels, 83.1% and 58.5%, respectively, making rapid supply chain decarbonization difficult without shifts in grid energy mix or direct renewable procurement. Experts say the combination of fossil-heavy grids and fabless dependency slows progress for the entire AI chip sector.

Renewable Procurement and Transparency Tools

Despite these challenges, opportunities exist to accelerate decarbonization. Corporate Power Purchase Agreements (PPAs), Taiwan Renewable Energy Certificates (T-RECs), and other procurement tools can enable foundries to access more renewable energy.

Additionally, Software as a Service (SaaS) platforms offering Measurement, Reporting, and Verification (MRV) capabilities can improve transparency and compliance with climate commitments.

Energy consultants are increasingly guiding suppliers through Taiwan’s multiple renewable procurement routes, including direct PPAs, retail green energy, on-site generation, and unbundled T-RECs. However, obstacles remain, such as elevated renewable electricity costs and the need for alignment across finance, purchasing, and operations teams.

Sustainability Pressure Intensifies

The Greenpeace report underscores the growing scrutiny on AI and semiconductor companies regarding climate responsibility.

Investors, regulators, and customers are increasingly evaluating supply chain emissions as a core metric of corporate sustainability.

As Nvidia and Broadcom face mounting pressure, their ability to implement effective renewable strategies may become crucial not only for environmental reasons but also for reputational and business resilience.

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