TD SYNNEX Net Zero Targets Approved by SBTi

Rhea-AI Summary

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.

Positive

• 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.

Negative

• 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.

Environmental, Social and Governance (ESG) Analyst

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.

Financial Analyst

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

FREMONT, Calif. & CLEARWATER, Fla.--(BUSINESS WIRE)-- TD SYNNEX (NYSE: SNX) announced today the company's near and long-term science-based emissions reduction targets have been approved by the Science Based Targets initiative (SBTi), making the company one of the first technology solutions aggregators to achieve this approval.

“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 42% by FY2030 from a FY2022 base year. TD SYNNEX also commits that 90% of its suppliers by spend covering purchased goods and services, will have science-based targets by FY2028. TD SYNNEX further commits that 58% of its customers by revenue covering use of sold products, will have science-based targets by FY2028.

Long-Term Targets
TD SYNNEX commits to reduce absolute scope 1, 2 and 3 GHG emissions 90% by FY2045 from a FY2022 base year.

“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 Clearwater, Florida, and Fremont, California, TD SYNNEX’s 23,000 co-workers are dedicated to uniting compelling IT products, services and solutions from 2,500+ best-in-class technology vendors. Our edge-to-cloud portfolio is anchored in some of the highest-growth technology segments including cloud, cybersecurity, big data/analytics, AI, IoT, mobility and everything as a service. TD SYNNEX is committed to serving customers and communities, and we believe we can have a positive impact on our people and our planet, intentionally acting as a respected corporate citizen. We aspire to be a diverse and inclusive employer of choice for talent across the IT ecosystem. For more information, visit www.TDSYNNEX.com, follow our newsroom or follow us on LinkedIn, Facebook and Instagram.

Safe Harbor Statement

Statements in this news release that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this release. The Company assumes no obligation to update any forward-looking statements contained in this release.

Copyright 2023 TD SYNNEX Corporation. All rights reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX company, product and services names and slogans are trademarks of TD SYNNEX Corporation. Other names and trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240522404977/en/

Emily Moseley

Global Corporate Communications

727-538-5864

emily.moseley@tdsynnex.com

Source: TD SYNNEX

FAQ

What are TD SYNNEX's net-zero targets?

TD SYNNEX aims to achieve net-zero greenhouse gas emissions across its value chain by FY2045.

When does TD SYNNEX plan to reduce its scope 1 and 2 GHG emissions by 42%?

TD SYNNEX plans to reduce its scope 1 and 2 GHG emissions by 42% by FY2030 from a FY2022 base year.

What percentage of TD SYNNEX's suppliers will have science-based targets by FY2028?

90% of TD SYNNEX's suppliers by spend will have science-based targets by FY2028.

By when will TD SYNNEX's customers have science-based targets?

58% of TD SYNNEX's customers by revenue will have science-based targets by FY2028.

Who approved TD SYNNEX's emissions reduction targets?

The Science Based Targets initiative (SBTi) approved TD SYNNEX's emissions reduction targets.

What is the long-term emissions reduction target for TD SYNNEX?

TD SYNNEX aims to reduce absolute scope 1, 2, and 3 GHG emissions by 90% by FY2045 from a FY2022 base year.