Climate Change Management
BenQ Materials' ESG Sustainability Committee set a net-zero emissions target for 2050 in 2021. By integrating greenhouse gas inventory data and its own development trends, the company formulated short, medium, and long-term carbon reduction goals and strategies.
Translation: BenQ Materials' ESG Sustainability Committee set a net-zero emissions target for 2050 in 2021. By integrating greenhouse gas inventory data and its own development trends, the company formulated short, medium, and long-term carbon reduction goals and climate strategies.
Climate Change Management Working Team
We establish the “Climate Change Management Working Team” chaired by the chairperson & CEO and co-chaired by the president, with top-tier officers of each unit being members, the CFO and risk management unit being the secretary-general to unfold related activities within the TCFD-recommended framework.
TCFD Operation and Management Framework
| Aspect |
BenQ Materials Strategy and Action Plan |
Governance
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- The Board periodically review climate-related risks and opportunities.
- Periodic report the operation of climate-related issues to the Board and Audit Committee from 2022. The past report was made on November 1, 2022.
- The Board receives climate-related education and training.
- Each month the ESG Committee shares environmental, social, governance (ESG) information to capture climate-related issues.
- In 2022 directors and management received a total of 39 hours of climate-related training for the annual training. Please refer to pp. 26 of the annual report for the name of courses.
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| Strategy |
- Based on the methodology for assessment of climate-related risks and opportunities, the internal definitions include:
- The time frame for potential impact occurrence: short term 0-3 years, medium term 3-5 years, and long term 5-10 years.
- Considerations of the significance of risk impact include asset and financial impact, product and service impact, personnel impact, and reputational impact.
- Through identification and assessment, we focus on five major risks and opportunities:
- Physical Risk: including weather events
- Transition Risk – Policy and Legal: including the carbon pricing mechanism and compulsory renewables use.
- Transition Risk – Market: Increased cost or shortage of materials.
- Transition Risk – Technology: Unsuccessful investments/R&D of low-emission substitution products.
- Transition Risk – Reputation: Increased stakeholder concern or negative stakeholder feedback.
- Directions of scenario settings include:
- Transition scenario: National carbon reduction target
- Physical scenario: RCP 8.5
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Risk Management
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- Establishing the process for identifying climate-related risks based on the TCFD-recommended framework:
- Based on the TCFD-recommended framework, identify and assess climate-related risks, including the current laws and regulations, emerging laws and regulations, legal, policy and legal, technology, market, reputation, and physical risks (acute and chronic).
- Prioritize and analyze risks based on the identification and assessment results and report to the annual management review meeting of the Climate Change Management Working Group to ensure the effectiveness of operation.
- Including climate-related issues in the corporate risk management process
- Include high-risk issues in the management meeting for management; review the changes in transition and physical risks every year; and make rolling adjustment to the adaptation action plans. (Please refer to 3-5 Risk Management of this report.)
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| Metrics and Targets |
- Metrics for climate change performance management have been set:
- Ratio of renewables: 30% of renewables use by 2030.
- Development of low-emission and low-carbon products and technologies
- Perform GHG inventory in accordance with ISO 14064-1:2018, review potential risks, and establish feasible mitigation strategies every year:
- Conduct ISO 14064-1:2018 GHG inventory and pass third-party assurance (with certificate).
- Reduce GHG emissions by 30% by 2030 over 2020 (base year).
- Achieve net-zero emissions by 2050 and key climate-related targets, such as product design.
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GHG inventory
The 2022 GHG (Scopes 1 and 2) emissions reduced by 11.17% over 2021 and 8.02% over 2020 to 52,923.32 tCO2e. GHG (Scopes 1 and 2) emissions intensity began to progressively reduce in 2017. The 2022 unit intensity reduced by 5.79% over 2021 and 10.92% over 2020 to 3.41 tCO2e/NT$ million.
The 2022 GHG (Scope 3) emissions reduced by 2.59% over 2021 and 1.24% over 2020 to 9,645.07 tCO2e
GHG Emissions - by scope
Unit: tCO2e)
GHG Emissions - by emission
Unit: t
- Note: We did not have PFCs and SF6 emissions.
GHG Emissions Intensity Over the Years
Unit: tCO2e/NT$1 million revenue
- Note 1：Boundaries of GHG inventory: BenQ Materials HQ, Taoyuan Plant, Longtan Tech Plant, Yunlin Tech Plant, Suzhou Plant, Wuhu Plant, and SIGMA Medical Supplies, Haihu Plant, BMC (No. 28), BMM, and DTB; Scope 3 inventory of HQ and all plants in Taiwan and overseas plants started in 2019 and 2022 respectively.
- Note 2：We inventoried GHG in accordance with ISO 14064-1:2018 and implemented third-party verification by external certification bodies. Plants in both Taiwan and mainland China passed the verification in 2022.
- Note 3：Emissions from electricity consumption in Taiwan were calculated based on the 2022 electricity carbon emission factor at 0.509kg tCO2e/kWh announced by the Bureau of Energy.
- Note 4：The power emission coefficient of business locations in China refers to the “2019 China Regional Grid Baseline Emission Factor” announced by the Ministry of Ecology and Environment Bureau, PRC, and the Eastern China regional grid conversion coefficient is 0.7921 tCO2e/MWh.
- Note 5：For the fuel and coolant emission coefficient, the research and summary information of the greenhouse gas emission provided by the Environmental Protection Administration, Executive Yuan – Emission Coefficient Table Version 6.0.4 is used
