Reynand Wu
NVIDIA, the dominant force in the artificial intelligence hardware market, has disclosed a significant surge in its Scope 3 greenhouse gas emissions, nearly tripling from 3,638,432 metric tons of carbon dioxide equivalent (MT CO2e) in Fiscal Year 2024 to 10,700,940 MT CO2e in FY2026. This alarming increase, detailed in the company’s newly released Fiscal Year 2026 Sustainability Report, brings NVIDIA’s indirect emissions close to the annual carbon footprint of a medium-sized nation like Lebanon, which emitted approximately 11,004,120 tons of CO2 in 2024.
The report highlights that the primary driver of this substantial escalation is upstream emissions associated with the production of components, materials, and manufacturing services essential for NVIDIA’s cutting-edge GPUs and AI systems. As a fabless semiconductor company, NVIDIA outsources its manufacturing processes, effectively shifting the environmental burden to its extensive network of ecosystem partners. These partners, predominantly located in manufacturing hubs across Taiwan and South Korea, are now facing increased pressure to address the environmental impact of producing the sophisticated hardware that powers the global AI revolution. Scope 3 emissions, which encompass all indirect emissions in a company’s value chain, now constitute over 99% of NVIDIA’s total carbon footprint, underscoring the critical need for supply chain decarbonization.
The Growing Shadow of Upstream Emissions
NVIDIA’s reliance on its supply chain for the majority of its environmental impact is a characteristic shared by many technology giants. However, the sheer scale of the recent increase in its Scope 3 emissions has drawn sharp attention from environmental advocacy groups. The report reveals that the manufacturing of raw materials, the fabrication of semiconductors, and the assembly of complex AI systems are the principal contributors to this surge. This includes the energy-intensive processes involved in creating advanced silicon chips, memory modules, and other critical components that are fundamental to NVIDIA’s market leadership.
The geographical concentration of these manufacturing processes in East Asia, particularly in Taiwan and South Korea, means that the emissions are largely tied to the energy grids of these regions. A significant portion of electricity in both Taiwan and South Korea is still generated from fossil fuels, a factor that directly amplifies the carbon footprint of products manufactured there. Hundreds of NVIDIA’s ecosystem partners, including leading semiconductor foundries and assembly firms, operate within these regions, making their energy consumption and decarbonization efforts directly relevant to NVIDIA’s overall sustainability performance.
Greenpeace East Asia’s Scrutiny and Calls for Action
Environmental organizations, notably Greenpeace East Asia, have been closely monitoring NVIDIA’s sustainability progress and have voiced considerable concern over the latest emissions figures. Rachel Yu, a Climate and Energy Campaigner at Greenpeace East Asia, emphasized the disconnect between NVIDIA’s stated commitment to renewable energy and the reality of its supply chain’s energy sources.
"Jensen Huang reiterated in the sustainability report that AI is a ‘five-layer cake’ with energy being the foundation. He admitted that ‘the energy challenge is real. It’s solvable,’ and pointed to renewable energy as a key part of the solution," Yu stated. "However, NVIDIA’s foundry suppliers in East Asia are heavily relying on fossil fuels. From what the company has reported to date, we have yet to find any evidence of NVIDIA making renewable energy investments in its supply chain."
Greenpeace East Asia’s critique centers on the lack of concrete actions reported by NVIDIA to actively support its suppliers in transitioning to renewable energy. The report fails to detail initiatives such as power purchase agreements (PPAs) or direct investments in renewable electricity infrastructure within its supply chain. This stands in contrast to the efforts of some of NVIDIA’s peers in the tech industry.
Lagging Behind Industry Peers in Supply Chain Decarbonization
Previous research by Greenpeace East Asia has indicated that NVIDIA has been lagging behind its industrial competitors in decarbonizing its supply chain. A report published by the organization highlighted that other major technology companies, such as Google, are actively engaged in supporting their East Asian suppliers’ transitions to renewable energy. Google, for instance, has been a significant proponent of corporate PPAs and has invested in renewable energy projects to power its operations and those of its suppliers.
A more recent study by Greenpeace East Asia, which specifically examined NVIDIA’s supply chain decarbonization progress, revealed that only approximately a quarter of the electricity consumed by the company’s top suppliers in East Asia was sourced from renewable energy. This finding, based on data from the Carbon Disclosure Project (CDP) questionnaire responses as of March 2026, suggests a significant gap between NVIDIA’s reported emissions and the actual renewable energy penetration within its manufacturing network. The study indicated a renewable electricity ratio of only 24.09% among the top 20 manufacturing suppliers in East Asia.
This disparity raises questions about the effectiveness of NVIDIA’s current sustainability strategy in addressing the environmental impact of its rapidly expanding operations. As the demand for AI hardware continues to skyrocket, the carbon footprint associated with its production is poised to grow further, necessitating more aggressive and direct interventions.
A Timely Confrontation and a Plea for Tangible Commitments
The urgency of NVIDIA’s situation was underscored by a recent encounter between Greenpeace East Asia activists and NVIDIA CEO Jensen Huang in Taipei. During this confrontation, Huang reportedly acknowledged the importance of investing in renewable energy alongside its suppliers. This personal acknowledgment, however, has yet to translate into publicly disclosed, concrete actions within the company’s sustainability report.
"When confronted by Greenpeace East Asia activists in Taipei last month, Jensen Huang acknowledged the importance of investing in renewable energy with its suppliers," Yu stated. "With NVIDIA’s supply chain emissions almost tripling, the case for immediate, concrete action to decarbonize its manufacturing supply chain is urgent. It needs to start with setting clear, time-bound renewable energy targets for its supply chain in East Asia."
Greenpeace East Asia has outlined specific demands for NVIDIA to address these concerns:
- Establish clear, time-bound renewable energy targets for its supply chain in East Asia: This would involve setting ambitious goals for the percentage of renewable electricity its suppliers must procure and disclose progress towards these targets regularly.
- Invest directly in renewable energy infrastructure for its supply chain: This could include providing financial support or direct investments in solar, wind, or other renewable energy projects that benefit its manufacturing partners.
- Implement robust mechanisms to verify and report on the renewable energy usage of its suppliers: Greater transparency and accountability are needed to ensure that reported progress is accurate and verifiable.
- Collaborate with suppliers to develop and implement energy efficiency measures: Beyond sourcing renewable energy, reducing overall energy consumption within the supply chain is crucial.
Background and Chronology of Concerns
The current report follows a series of disclosures and analyses that have progressively highlighted the environmental challenges associated with the burgeoning AI industry. NVIDIA’s GPUs are the de facto standard for AI training and inference, driving unprecedented demand. This demand has, in turn, fueled the expansion of semiconductor manufacturing, a process known for its high energy and water consumption, as well as its reliance on specialized chemicals and materials.
- Early 2020s: The acceleration of AI development and deployment leads to a dramatic increase in demand for high-performance GPUs.
- Mid-2020s: Environmental organizations begin to scrutinize the carbon footprint of AI hardware manufacturing, with a particular focus on the supply chains of leading chip manufacturers like NVIDIA. Reports highlight the energy intensity of semiconductor fabrication and the reliance of East Asian manufacturing hubs on fossil fuels.
- Recent Years: NVIDIA releases its sustainability reports, detailing its emissions. While the company has acknowledged the importance of sustainability, critics point to a perceived lack of aggressive action in addressing its Scope 3 emissions.
- Early 2026: Greenpeace East Asia releases studies indicating that NVIDIA lags behind its peers in supply chain decarbonization and that a low percentage of renewable energy is used by its key suppliers.
- Spring 2026: Greenpeace East Asia activists confront NVIDIA CEO Jensen Huang in Taipei, urging him to prioritize renewable energy investments in the supply chain.
- Recent Disclosure: NVIDIA releases its FY2026 Sustainability Report, revealing a near tripling of Scope 3 emissions, intensifying environmental scrutiny.
Broader Implications and the Future of Sustainable AI
The substantial increase in NVIDIA’s Scope 3 emissions has significant implications for the broader goal of achieving sustainable AI development. As the company continues to dominate the AI hardware market, its environmental performance is a critical bellwether for the industry. The reliance on fossil fuel-heavy energy grids in key manufacturing regions presents a persistent challenge that requires innovative solutions and substantial investment.
The fact that Scope 3 emissions constitute over 99% of NVIDIA’s total carbon footprint underscores a fundamental challenge: the company’s environmental impact is largely outside its direct operational control. This necessitates a collaborative approach, involving not only NVIDIA but also its vast network of suppliers, policymakers, and energy providers. Without a concerted effort to transition East Asian manufacturing hubs to renewable energy sources, the growth of AI risks exacerbating climate change.
The comparisons drawn to the emissions of a medium-sized country like Lebanon serve as a stark reminder of the scale of the problem. While the technological advancements driven by NVIDIA’s hardware are transformative, their environmental cost cannot be ignored. The call for clear, time-bound targets, direct investment in renewable energy, and greater transparency from NVIDIA is not merely an environmental plea; it is a crucial step towards ensuring that the AI revolution is built on a foundation of sustainability, rather than contributing to further environmental degradation. The coming years will be critical in determining whether NVIDIA and its supply chain partners can effectively address this escalating environmental challenge.
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Notes:
[1] Based on Worldometer’s CO2 emissions by country data, Lebanon’s annual GHG emissions in 2024 were 11,004,120 tons.
[2] Taiwan hosts more than 500 NVIDIA ecosystem partners and produces more than 1 million rack components for the NVIDIA Vera Rubin infrastructure. In South Korea, SK Hynix and Samsung Electronics are NVIDIA’s primary memory chip suppliers.
[3] According to the analysis by Greenpeace East Asia, the renewable electricity ratio among the top 20 manufacturing suppliers in East Asia was only 24.09% based on the latest Carbon Disclosure Project (CDP) questionnaire responses as of March 2026.
Media Contact:
Yujie Xue, International Communications Officer, Greenpeace East Asia, [email protected]
Jia Lissa
Neng Nana
