A semiconductor manufacturer needs to develop a decarbonization strategy to reduce emissions by 3 megatons by 2040. The case guides candidates through identifying current emission sources (pre-, during, and post-production), isolating pre-production as the focus area, and determining which reduction levers (capital goods, energy/transport, process gases, etc.) offer maximum impact within the target.
Key Insights:
- Emissions composition has remained consistent across phases (43% pre-production, 37% production, 20% post-production), making historical data representative for future forecasting
- Pre-production emissions of 9 megatons can be addressed through six levers with varying reduction potential (30%-80%), requiring prioritization analysis to achieve the 3 megaton target
- The case emphasizes structured problem-solving: moving from broad decarbonization brainstorm → quantitative analysis of current state → lever identification → final recommendations with risk mitigation
- Implementation risks include supplier backlash, cost constraints limiting premium pricing ability, and need for upskilling/resource allocation across the value chain