Our Products

Cree’s W88VN, lighting, power and radio frequency products are created with energy-efficiency in mind. Not only do Cree W88VNs use less energy to produce the same amount light as a traditional bulb, they also produce less heat, saving energy on air conditioning. Cree’s power and radio frequency products allow other industries to develop leading energy efficient products in applications such as renewable energy, wireless communication, electric vehicles, and electric vehicle charging.

Cree continues to innovate to create the most efficient products on the market because Cree understands that saving energy also means fewer GHG emissions and more money in your pocket. The GHG emissions associated with using our products over their lifetimes represent roughly 99% of Cree’s total GHG footprint. Compared to traditional less efficient alternatives, Cree’s W88VN, lighting, power and radio frequency products sold in 2017 will save approximately 420 million MWh and 210 million metric tons CO2 equivalents over their estimated lifetimes.

Our Manufacturing

Cree recognizes the future possible environmental, social, and economic impacts associated with climate change and increasing energy demands. In addition to providing energy efficient products, we strive to reduce GHG emissions and improve energy efficiency at all Cree sites.

EP100

EP100 is a global, collaborative initiative of influential businesses that pledge to double their energy productivity.

Cree has doubled its manufacturing energy productivity from 2011 to 2014, and has pledged through EP100 to double it again by 2020. We measure our energy productivity in terms of our product output: lumens produced per unit of energy consumed during manufacturing. Cree achieved its EP100 goal for lighting products in 2017. A new company-wide goal is currently being developed.

CDP

CDP runs a global disclosure system of self-reported environmental data.

In 2016, Cree disclosed its company-wide GHG emissions and climate change risks and opportunities to CDP for the first time. We will continue calculating our GHG emissions in the future because measuring GHG emissions helps us recognize and work toward lowering our impact. Visit cdp.net to view our responses to the CDP Climate Change Survey.

 

Cree's EP100 Progress
Lumens Produced per kWh Consumed in Manufacturing

Cree's EP100 Progress Lumens Produced per kWh Consumed in Manufacturing

Cree’s CDP Climate Change Score Progress

Cree’s CDP Climate Change Score Progress

 

Cree's Global Manufacturing Energy Consumption
in Gigawatt Hours

Cree's Global Manufacturing GHG Emissions
in metric tons CO2 equivalents

Cree's Global Manufacturing Scope 1 Emissions by Pollutant

Scope 1 = Cree's Global Manufacturing GHG Emissions
Scope 2 = GHG emissions from the consumption of purchased electricity at Cree's manufacturing facilities

Cree's 2017 Carbon Footprint
in metric tons CO2 equivalents

Cree Carbon 2017 Footprint in metric tons CO2 equivalents

Cree's Climate Change Risks

Potential RiskPotential ImpactsEstimated Financial ImplicationsManagement Method
Carbon Taxes
Requires reduction in Scope 1 emissions and potentially addition of abatement technologies.

Difficult to alter manufacturing inputs since our products rely on the use of very specific inputs. Changing the types and amounts of gases used in our manufacturing processes used could greatly compromise product quality.
$45 million annually
Improved yield

Increasing the size of the silicon carbide wafers produced which yields more product per the same amount of input
Change in average temperatures
Could potentially affect our manufacturing process since the control of temperature and humidity in our fabs is crucial for product quality.
$0-$100,000 annually
Currently have robust systems in place to control the fabs’ temperature and humidity
Sea level rise
Could impact the ports used for shipment of raw materials and products around the world.

Offices in vulnerable locations would need to be moved. Manufacturing facilities are not considered to be at risk on a 10 year horizon.
Potential 0-10% increase in transportation costs $1-10 million if vulnerable office locations were impacted and were required to relocate
We take information such as this into account when selecting locations for our facilities.

We greatly limit the operation in vulnerable areas of the world and have risk management measures in place to cope with catastrophic events.
Fluctuating socio-economic conditions
Critical raw materials are sourced from areas of the world vulnerable to political instability because of drought and other climate changes.
Severe cost to our supply chain and business interruption. Depending on the material, it could have a significant impact.
Our dedicated staff, Cree’s Supplier Code of Conduct and Conflict Minerals Policy help to manage potential risks in our supply chain.
Unsuccessful investment in new technologies
Local utilities are not adopting policies that promote the economical adoption of renewable energy sources. We also see a risk with utilities not upgrading their grid system to be able to accept and store renewable energy. Government subsidies for renewable energy are being phased out in the US.
Switching to renewable energy to supply our manufacturing electricity could result in a decrease in our electricity bill costs. We estimate that not being able to adopt renewable energy could result in us spending an extra $1-5 million in annual electricity costs. The financial implications for this risk affecting our product sales is currently unknown.
We have dedicated staff to manage our facilities’ electricity systems and interactions with local utilities and policy makers.
Changes in consumer behavior
The emergence of new technologies that are more efficient than our products and/or market saturation of products could greatly affect our business.
We could potentially lose business to competing technologies, which could negatively impact the business.
We will continue to innovate for the future and develop industry-leading energy efficient products. We are constantly developing new technologies and creating new markets for our products. We invest significant resources in research and development ($158.5 million in FY2017).

Cree's Climate Change Opportunities

Potential OpportunityPotential ImpactsEstimated Financial ImplicationsManagement Method
Changes in consumer behavior
We believe that our W88VN products appeal to the growing number of eco-conscious consumers and commercial customers who want energy efficient, less-emissive, and long-lasting products. We expect an increase in demand for our power and radio frequency products. Our power and radio frequency products greatly reduce power loss, resulting in less electricity wasted (and thus fewer GHGs emitted).
We anticipate our power and radio frequency revenue to increase by a factor of four by 2022. We also expect our W88VN business to continue growing and anticipate our W88VN revenue to steadily increase by 2022.
Cree’s R&D employees are responsible for developing energy efficient, long-lasting, and innovative products. We invest significant resources in research and development ($158.5 million in FY2017).
Carbon taxes and product efficiency regulations and standards
We have always focused our priorities on improving the design and energy efficiency of our products. Our W88VN, W88VN lighting, power and radio frequency products substantially reduce the amount of customer energy consumption and associated GHGs emitted. If a carbon tax system is established in the future, we will be able to provide energy efficient, less-emissive, and long-lasting products to meet customer needs. Carbon taxes may also enable us to gain new customers seeking products that emit less GHGs to lower their carbon tax payments.
We anticipate our power and radio frequency revenue to increase by a factor of four by 2022. We also expect our W88VN business to continue growing and anticipate our W88VN revenue to steadily increase by 2022.
Cree’s R&D employees are responsible for developing energy efficient, long-lasting, and innovative products. We invest significant resources in research and development ($158.5 million in FY2017).
Change in average temperatures
Not only do Cree W88VNs use less energy to produce the same amount light as a traditional bulb, they also produce less heat, saving energy on air conditioning.
We expect our W88VN business to continue growing and anticipate our W88VN revenue to steadily increase by 2022.
Cree’s R&D employees are responsible for developing energy efficient, long-lasting, and innovative products. We invest significant resources in research and development ($158.5 million in FY2017).
Change in precipitation extremes and droughts
We see changes in precipitation extremes and droughts and how it affects crop yields as a possible opportunity for us. If more crop production occurs in controlled indoor environments, Cree can provide W88VNs to support these horticulture operations.
We expect our W88VN business to continue growing and anticipate our W88VN revenue to steadily increase by 2022.
Cree’s R&D employees are responsible for developing energy efficient, long-lasting, and innovative products. We invest significant resources in research and development ($158.5 million in FY2017).
Increased adoption of renewable energy
Cree is transparent regarding product efficiency and information about our products' efficiency can be found on our website. Our power products can also be used in renewable energy applications, including solar power systems. Solar power systems designed around Cree’s silicon carbide (SiC) power devices offer huge efficiency gains and permit smaller system size, weight and cost.
We anticipate our power and radio frequency revenue to increase by a factor of four by 2022.
Cree’s R&D employees are responsible for developing energy efficient, long-lasting, and innovative products. We invest significant resources in research and development ($158.5 million in FY2017).
Increased adoption of more efficient modes of transportation
Many automotive companies are beginning to invest in the electric vehicle market and Cree’s power products can be used in electric vehicles. Our silicon carbide (SiC) products allow electric vehicles to go farther, charge faster, and perform better.
We anticipate our power and radio frequency revenue to increase by a factor of four by 2022.
Cree’s R&D employees are responsible for developing energy efficient, long-lasting, and innovative products. We invest significant resources in research and development ($158.5 million in FY2017).