The overall environmental ratings score for Texas Instruments (TI) in the most recent quarter was 1.492, a decline from its score of 1.885 one year ago.1 The decrease appears to be driven primarily by the first-time reporting of data from sites in Chengdu, China, and Aizu, Japan. These sites were acquired in late 2010. TI disclosed data related to energy consumption for three months from the Chengdu site and for four months from the Aizu site in its previous Carbon Disclosure Project (CDP) report.2
Another factor contributing to the decline in TI’s overall score is the first-time inclusion of non-manufacturing sites greater than 50,000 square feet, which resulted in a 3.9% greenhouse gas emissions increase.
The effects of adding new data from acquired entities will affect TI’s future scores. The most recent Texas Instruments CDP report did not include data from its late-2011 acquisition of National Semiconductor, including sites in Santa Clara, California; South Portland, Maine; Melaka, Malaysia; and Greenock, Scotland.
Most Abacus clients own Texas Instruments through the DFA U.S. Sustainability Core mutual fund.
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1 The score of 1.492 is Texas InstrumentI’s overall score from a CDP questionnaire on Carbon Disclosure in year end 2013. The score of 1.885 is TI’s overall score from Q3 2012. The score of 1.492 compares to Dell 2.339; MIcrosoft 2.068; Apple 1.718; Intel 1.392. To see the how the scores are calculated register on the CDP website and search for Texas Instruments. Registration is free.
2 https://www.cdproject.net/Sites/2012/40/18640/Investor%20CDP%202012/
Pages/DisclosureView.aspx accessed March 2013.
