Takeaways

• Greenpeace East Asia’s latest report ranks Nvidia last among the world’s top 10 AI companies for supply chain decarbonization.
• The report reveals weak climate commitments, poor transparency, and soaring emissions across AI hardware supply chains, especially in East Asia.
• Apple leads the ranking with a B+ grade, while six companies, including Nvidia, Broadcom, and Qualcomm, received failing grades.

Nvidia, the world’s first US$4 trillion firm and a leader in AI chip design, has been called out for lagging far behind its peers in cutting emissions and adopting renewable energy across its supply chain. A new Greenpeace East Asia report, “Supply Change: Tracking AI Giants’ Decarbonization Progress,” highlights that Nvidia ranks last among the world’s 10 largest AI companies when it comes to supply chain decarbonization.

The report assesses tech leaders such as Amazon, Apple, Google, Microsoft, and Meta, alongside semiconductor giants AMD, Broadcom, Intel, Nvidia, and Qualcomm. It found that most are making limited progress in reducing their supply chain emissions, which for some companies account for as much as 98% of total emissions.

According to Katrin Wu, Supply Chain Project Lead at Greenpeace East Asia, companies like Nvidia are reaping massive profits from the AI boom while offloading environmental costs onto regions like East Asia. “They claim their innovative products can save the world from climate crises. However, the innovation is built on dumping supply chain emissions on other parts of the world, especially in East Asia, which faces its own challenges in energy transition and is extremely vulnerable to climate change,” she said.

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Weak Climate Commitments and Rising Emissions

The findings reveal that Nvidia and Broadcom performed worst in supply chain decarbonization, primarily due to weak climate targets, poor supply chain transparency, and limited renewable energy initiatives. While Apple leads with a B+ rating, six out of ten companies received an F.

Notably, Nvidia has not set any renewable energy targets for its supply chain or made commitments toward carbon neutrality. The company’s supply chain emissions accounted for over 80% of its total emissions in 2024, nearly doubling from 3.5 million metric tons of CO2e in 2022 to nearly 6.9 million in 2024.

Greenpeace also noted that nine of the ten assessed companies, including Nvidia, Microsoft, and Google, received failing grades for supply chain transparency, as they failed to disclose suppliers’ renewable energy usage or electricity consumption data.

East Asia: The Epicenter of AI Emissions

Most AI hardware manufacturing takes place in East Asia, which still relies heavily on fossil fuels. The region produces about 75% of the world’s semiconductors and 60% of global electronics. Weak supply chain decarbonization strategies by U.S.-based AI firms, Greenpeace warns, are worsening climate inequality in East Asia.

While several companies, including Google and Microsoft, advocate for renewable energy, some also promote nuclear expansion, a move Greenpeace calls a “false solution.” Nvidia and Broadcom have shown no evidence of supporting renewable energy policies or investing in supplier-focused decarbonization programs.

Also Read: Understanding AI Pollution: Environmental Impact and Sustainable Solutions

Call for Greater Accountability

Greenpeace East Asia has urged AI companies to commit to 100% renewable energy across their supply chains by 2030 and improve transparency to prevent greenwashing. It recommends tools such as power purchase agreements and renewable energy investments to accelerate supply chain transformation.

Wu added, “East Asia plays a crucial role in enabling global AI players to succeed in AI competition. Companies like Nvidia, AMD, and others must take urgent actions to reduce their supply chain emissions by targeting the use of renewable energy resources to power their entire supply chain. This goal is ambitious but not unattainable. It can start with increasing investments in renewable energy resources in the region. If Apple can set the benchmark and invest in renewable energy in East Asia, other AI companies can surely do the same.”

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Source: GREENPEACE