TD SYNNEX Net Zero Targets Approved by SBTi
TD SYNNEX (NYSE: SNX) has had its near and long-term science-based emissions reduction targets approved by the Science Based Targets initiative (SBTi), making it one of the first technology solutions aggregators to achieve this milestone.
Key highlights include:
1. Net-zero greenhouse gas emissions across the value chain by FY2045.
2. A 42% reduction in absolute scope 1 and 2 GHG emissions by FY2030 from a FY2022 base year.
3. By FY2028, 90% of suppliers by spend and 58% of customers by revenue will have science-based targets.
CEO Rich Hume emphasized that sustainability has been a priority since the company’s inception post-merger in 2021. Vice President Adam Rutstein highlighted the ongoing efforts to build regional roadmaps to reach these goals.
- TD SYNNEX's net-zero targets approved by the Science Based Targets initiative (SBTi).
- Commitment to reach net-zero greenhouse gas emissions across the value chain by FY2045.
- Plan to reduce absolute scope 1 and 2 GHG emissions by 42% by FY2030 from a FY2022 base year.
- 90% of suppliers by spend will have science-based targets by FY2028.
- 58% of customers by revenue will have science-based targets by FY2028.
- Early approval positions TD SYNNEX at the forefront of corporate climate action.
- Challenging near-term and long-term targets may require significant investment and operational changes.
- Dependence on suppliers and customers to meet science-based targets could introduce external risks.
- Achieving a 90% reduction in absolute scope 1, 2, and 3 GHG emissions by FY2045 might be difficult and costly.
Insights
TD SYNNEX's approval by the Science Based Targets initiative (SBTi) represents a notable achievement in the realm of corporate sustainability. The company's commitment to achieving net-zero greenhouse gas (GHG) emissions across its value chain by FY2045, along with ambitious near-term targets, signals a robust adherence to environmental responsibility. For retail investors, this is a positive indicator as companies focusing on sustainability tend to perform better in the long run by mitigating environmental risks and potentially attracting ESG-focused investors.
From a broader perspective, the company's targets align well with global climate initiatives, reflecting an understanding of and commitment to reducing carbon footprints. The integration of these targets into their business model can potentially result in operational efficiencies and cost savings over time, though these benefits may not be immediate.
However, there are inherent challenges. Achieving a 42% reduction in absolute scope 1 and 2 emissions by FY2030 is ambitious, requiring substantial investment in clean technologies and possibly a restructuring of current operations. The emphasis on suppliers and customers also indicates a shift towards a more sustainable supply chain, but it might encounter resistance or higher costs initially.
For retail investors, TD SYNNEX's net-zero targets present both opportunities and risks. On the one hand, aligning with SBTi-approved targets could enhance the company's brand image and attract more investment from sustainability-focused funds. This can lead to a positive sentiment in the stock market, potentially driving the stock price upward, at least in the short-to-medium term.
In financial terms, the costs associated with achieving these targets should not be overlooked. Investments in new technologies and processes, as well as potential increases in operational costs, could affect profit margins. However, the long-term financial benefits, such as cost savings from energy efficiency and improved competitiveness, could outweigh these initial expenditures.
It is also important to consider the market dynamics. If TD SYNNEX successfully implements its sustainability targets, it may set a benchmark within the technology solutions aggregation industry, compelling competitors to follow suit. This could provide TD SYNNEX with a competitive edge.
TD SYNNEX among first technology solutions aggregators to have its targets approved
“I was privileged to sign our commitment to the SBTi Business Ambition Pledge as one of my first acts as CEO of TD SYNNEX following the merger that created our company in September 2021, so it’s safe to say sustainability has been a priority for our business from Day 1,” said Rich Hume, CEO, TD SYNNEX. “I thank all the co-workers involved in building our roadmap to achieving these goals. The approval by SBTi is a testament to their hard work and commitment.”
SBTi is renowned for developing standards, tools, and guidance to address greenhouse gas (GHG) emissions. TD SYNNEX's net-zero science-based targets have been approved, positioning the company at the forefront of corporate climate action. Approved targets include:
Overall Net-Zero Target
TD SYNNEX commits to reach net-zero greenhouse gas emissions across the value chain by FY2045.
Near-Term Targets
TD SYNNEX commits to reduce absolute scope 1 and 2 GHG emissions
Long-Term Targets
TD SYNNEX commits to reduce absolute scope 1, 2 and 3 GHG emissions
“As we celebrate the validation of our targets, we recognize that the hard work now begins. To this end, we are building roadmaps within each region to reach our goals, and also are encouraging our stakeholders to align with climate science by also working toward a commitment to science-based 1.5 C and net-zero targets,” added Adam Rutstein, Vice President, Corporate Citizenship and Sustainability, TD SYNNEX.
Learn more about TD SYNNEX’s corporate citizenship commitments at https://www.tdsynnex.com/us/en/about-us/corporate-citizenship.html.
About TD SYNNEX
TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. We’re an innovative partner helping more than 150,000 customers in 100+ countries to maximize the value of technology investments, demonstrate business outcomes and unlock growth opportunities. Headquartered in
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Emily Moseley
Global Corporate Communications
727-538-5864
emily.moseley@tdsynnex.com
Source: TD SYNNEX
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