Each 1°C of temperature rise will reduce global GDP by as much as 12%.[1] The Intergovernmental Panel on Climate Change (IPCC) advises that greenhouse gas (GHG) emissions must reach net zero by 2050 to avoid exceeding 2°C of warming. Nevertheless, semiconductor industry emissions are forecasted to overshoot a 1.5°C pathway by 3.5 times and fall short of net-zero in 2050.[2]

In its 10-K, Skyworks acknowledges the risks of “severe weather events, including, but not limited to, earthquakes, wildfires, droughts, hurricanes, tsunamis, rising sea levels, as well as other impacts of climate change.”

Skyworks discloses Scope 1 and 2 emissions from operations and electricity purchases. Yet, Scope 3 emissions across the value chain account for over 80% of the semiconductor industry’s GHG footprint.[3] Its peer NXP Semiconductors found that the categories use of sold products, purchased goods and services, and capital goods comprised 98% of total Scope 3 emissions.[4]

While Skyworks performed an initial Scope 3 emissions inventory, it only discloses emissions from the business travel category, which accounts for under 20% of a semiconductor company's total Scope 3 emissions.[5] Without data for the majority of Skyworks’ emissions, investors are left uncertain about the extent to which Skyworks is exposed to the climate risks outlined in its 10-K and the level of action required to mitigate them.

Failure to disclose Scope 3 emissions exposes Skyworks to further material risks:

· Regulatory risk: Forthcoming regulations from California and the European Union require Skyworks to disclose Scope 3 emissions.

· Market access loss: Skyworks may not meet the climate mitigation expectations of major customers. In Skyworks’10-K, Apple accounted for 66% of net revenue in 2023. Given Apple’s 2030 carbon neutrality commitment, Skyworks’ current policies appear incompatible with the climate mitigation goal of a major purchaser.[6]

· Competitive risk: Skyworks lags industry peers including Analog Devices, Applied Materials Inc., Qualcomm, NXP Semiconductors, and Murata Manufacturing in disclosing Scope 3 emissions and implementing initiatives to reduce emissions from the largest Scope 3 emission categories.

Skyworks’ GHG emissions disclosures are inadequately aligned with investor expectations for climate mitigation and the ambition necessary to respond to the financial, competitive, and regulatory risks of climate change.