Onsemi, formerly ON Semiconductor, now pledges to be net-zero by 2040, CEO says

• ON Semiconductor, now known as Onsemi, plans to achieve carbon neutral emissions by 2040, president and CEO Hassane El-Khoury told CNBC's Jim Cramer on Thursday.
• "It's not just the right thing to do. It's the only thing we can do in order to support and sustain our business but that of our customers and that of the future generations," El-Khoury said.

ON Semiconductor, now known as Onsemi, plans to achieve net-zero emissions within the next two decades, President and CEO Hassane El-Khoury told CNBC's Jim Cramer on Thursday.

"We're going to be net zero by 2040. That's a very big commitment, not just from us but also for our customers," El-Khoury said in a "Mad Money" interview.

In a press release Thursday, Onsemi said two of the company's key end markets — industrial and automotive — contribute about 66% of global greenhouse gas emissions, underscoring the need for its own climate-focused initiatives.

"The products that we make, when I talk about intelligent power and sensing, that efficiency allows our customers to even achieve their own climate goals. If you want to be part of that ecosystem, which we are and you're an enabler, you also have to do your part," El-Khoury said on CNBC.

The carbon footprint of the semiconductor manufacturing process also has been in the spotlight recently, particularly as the need for chips soars in the digital age. That increased demand played a role in the global chip shortage that arose during the Covid pandemic and is snarling parts of the economy like automotive production.

In recent years, investors, governments and activists have stepped up their pressure on corporations to reduce the environmental impact of their operations. A range of companies have announced various pledges to achieve net-zero emissions, meaning the amount of greenhouse gases they emit match the amount that are removed.

"We've been doing our part, but now we're going to making it part of our strategy and part of our focus because it's not just the right thing to do. It's the only thing we can do in order to support and sustain our business but that of our customers and that of the future generations," El-Khoury said. "It's on us to do that, given what we are able to do. It is our responsibility."

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