Climate Change Management
In 2021, BenQ Materials’ ESG Committee formally established the Company’s 2050 net-zero emissions target. Based on greenhouse gas inventory results and the Company’s overall development trends, the Company has planned short-, medium-, and long-term carbon reduction targets and implementation strategies. To respond to the needs of climate change mitigation and adaptation, the Company continues to introduce and implement the ISO 14001 Environmental Management System and ISO 50001 Energy Management System, while promoting energy conservation, carbon reduction, and resource efficiency improvement actions. At the same time, BenQ Materials formally set Scope 3 greenhouse gas reduction targets in 2025 and is identifying feasible approaches to reducing value chain carbon emissions. In recent years, the Company has also actively invested in the application of artificial intelligence technologies and new equipment to improve production efficiency and achieve low-carbon transformation. The Company has also built on-site solar power generation systems to expand the use of renewable energy. It focuses on the R&D of lowcarbon green products and works with sustainable supply chain partners to move comprehensively toward lowcarbon, green, and sustainable operations. BenQ Materials supports the Paris Agreement goal of keeping the global temperature increase well below 2°C and pursuing efforts to limit the increase to 1.5°C. Although the Company has not yet obtained SBTi validation for a 1.5°C target, it completed the greenhouse gas inventory for all operating sites in 2025 and has planned carbon reduction pathways and phased targets accordingly. In the future, BenQ Materials will continue to consider actual operating conditions and industry development trends, carefully evaluate the feasibility of applying for SBTi validation, and gradually strengthen its climate actions and carbon reduction management.
Net-Zero Roadmap
BenQ Materials is committed to achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions by 2050, with 2020 as the base year. The Company aims to achieve at least a 90% absolute reduction in Scope 1 and Scope 2 emissions by 2050. Residual emissions that cannot be eliminated will be addressed through high-quality carbon credits and other credible neutralization measures. Scope 3 emissions are managed separately through dedicated reduction targets and value-chain decarbonization initiatives.
Climate Change Management Working Team
BenQ Materials has established the "Climate Change Management Task Force," with the CEO and General Manager serving as Chairman and Vice Chairman, respectively. The firstlevel supervisors from each unit serve as committee members, and the CFO/Risk Management Unit serves as the Secretary General. This task force is responsible for promoting activities related to climate change management.
TCFD Operation and Management Framework
| Aspect |
BenQ Materials Strategy and Action Plan |
Governance
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• The Board of Directors regularly reviews climate change-related risks and opportunities.
• Since 2022, the Company has reported annually to the Board of Directors and the Audit Committee on the operation of climate change-related issues. The operation and implementation status of TCFD in 2025 is expected to be reported to the Board of Directors in February 2026.
• The organizational chart of the Climate Change Management Task Force is shown above. Each year, the Company identifies and assesses climate change-related risks and opportunities, and formulates climate change adaptation plans after comprehensively considering potential financial and other impacts. Management review meetings are chaired by the Chair/Vice Chair to ensure timely resource provision and alignment between climate change adaptation action plans and the Company’s strategic direction. |
Strategy
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According to the climate-related risk and opportunity assessment methodology, internal definitions are as follows:
• Time horizon for potential impacts:
– Short-term: 0–1years
– Mid-term: 1–3 years
– Long-term: more than 3 years
• Impact severity is assessed based on:
– Effects on assets and financials
– Impacts on products and services
– Impacts on personnel
– Reputational impacts 2 Through the identification and assessment process, five key risks and opportunities have been prioritized:
• Risks:
1. Increased severity and frequency of extreme weather events (medium term)
2. Carbon pricing mechanisms / strengthened carbon emissions disclosure requirements (medium term)
3. Stricter product regulations (medium term)
4. Changes in consumer preferences (long term)
5. Increased raw material costs or shortages (long term)
• Opportunities:
1. R&D and innovation of new products and services (medium term)
2. Renewable energy and energy conservation-related opportunities (medium term)
3. Developing and/or increasing low-carbon products and services (medium term), using more efficient production and distribution processes (short term)
4. Recycling and reuse (medium term)
5. Use of new technologies (long term).
Scenario Development Approach Includes:
• Transition scenario: The International Energy Agency’s Net Zero Emissions by 2050 scenario is used as the primary benchmark scenario. Considering changes in policies, industrial transformation, supply chains, and demand, the Company assesses potential impacts on corporate operations and related industries, including regulatory transition scenarios, comprehensive net-zero transition scenarios, low-carbon demand growth scenarios, and supply chain net-zero pressure scenarios.
• Physical scenario: The Company refers to SSP5-8.5, the very high emissions scenario in the IPCC Sixth Assessment Report (AR6). Due to insufficient external literature, the China sites refer to RCP8.5 in the IPCC Fifth Assessment Report (AR5).
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Risk Management
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1 Establishing a Climate Risk Identification Process Using the TCFD Framework:
• Risks are identified and assessed following the TCFD framework, covering both transition risks (such as current and emerging regulations, legal, policy, technology, market, and reputational risks) and physical risks (both acute and chronic).
• Identified risks are prioritized and analyzed based on the assessment results, and findings are reported to the Climate Change Management Task Force during its annual management review meetings to ensure effective implementation.
2 Integration of Climate-Related Issues into Enterprise Risk Management Processes:
• High-risk climate issues are incorporated into executive-level management discussions.
• Transition and physical risks are reviewed annually, and the corresponding adaptation action plans are adjusted dynamically. (Refer to Section 3-5 Risk Management in this report.) |
Metrics and Targets
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1 Climate Performance Management Indicators and Targets:
• Greenhouse Gas Emissions: 30% reduction by 2030 compared to the baseline year 2020.
• Renewable Energy Usage: 50% by 2030 and 100% by 2040.
• Carbon Reduction for Existing Products: 55% reduction by 2030 compared to the baseline year.
• Ultimate Goal: Achieve net-zero emissions by 2050.
2 Annual GHG Inventory and Strategy Review under ISO 14064-1:2018:
• Conduct greenhouse gas inventory in accordance with ISO 14064-1:2018 and obtain thirdparty assurance statements.
• Target a 30% reduction in emissions by 2030 compared to the 2020 baseline.
• Strive for net-zero emissions by 2050 and achieve key climate-related goals in product design.
• For detailed climate adaptation actions, please refer to the table below. |
Climate Change Adaptation Action Plan
GHG inventory
BenQ Materials has established a greenhouse gas inventory mechanism with reference to ISO 14064-1: 2018, the standard for greenhouse gas inventory, and the Greenhouse Gas Protocol issued by the World Resources Institute (WRI). Since 2008, the Company has gradually established complete greenhouse gas emissions inventories for each manufacturing site and conducts greenhouse gas inventories on a regular annual basis, and uses 2020 as the carbon reduction base year. This is mainly because data completeness across business units had become mature in that year, and the total emissions of that year therefore serve as the basis for net zero pathway planning and reduction performance tracking. For subsidiaries, Web-Pro, Cenefom, and GeneJet completed inventory and third-party verification in 2025 and are included in the current disclosure scope.
BenQ Materials’ greenhouse gas emissions come from two major sources. The main source is carbon dioxide generated during power generation for purchased electricity used in operations. Secondary sources are greenhouse gas emissions generated from the combustion of natural gas and gasoline used in internal operating activities.
In 2023, the Company re-identified Scope 3 indirect emissions categories. Based on the ease of collecting activity data and referencing emission factors, the Company selected Scope 3 indirect emissions inventory categories, including six categories: upstream transportation and distribution, business travel and employee commuting, purchased goods and services, capital goods, and waste generated in operations. In 2023, employee commuting and downstream transportation and distribution were newly added to the inventory. In 2024, purchased goods and services and upstream transportation and distribution were added to the inventory. In 2025, the inventory scope for purchased goods and services was expanded. Items with available emission factor sources and activity data were included in the inventory scope. In addition, Scope 3 purchased goods and services were incorporated into the reduction target, with an annual reduction target of 2.5%.
In 2025, greenhouse gas emissions (Scope 1 and Scope 2) totaled 70,341.99 metric tons CO2e, an increase of 40.38% compared to 2024. This was mainly due to the inclusion of subsidiaries Web-Pro, Cenefom, and GeneJet in the disclosure scope. Compared to 2020, emissions increased by 22.26%. In terms of greenhouse gas emissions intensity (Scope 1 and Scope 2), the intensity has declined year by year since 2017. In 2025, unit intensity was 3.94 metric tons CO2e per NT$1 million, an increase of 46.22% compared to 2024 and 3.10% compared to 2020. This was mainly due to the expanded disclosure scope, which included subsidiaries. In 2025, greenhouse gas emissions (Scope 3) totaled 147,302.81 metric tons CO2e, an increase of 89.42% compared to 2024 and 1,446.19% compared to 2020. The main reasons for the increase in Scope 3 emissions in 2025 were the inclusion of subsidiaries Web-Pro, Cenefom, and GeneJet in the disclosure scope and the expansion of the inventory for purchased goods and services, with items that had available emission factor sources and activity data included in the inventory scope.
GHG Emissions - by scope and Intensity Over the Years
GHG Emissions (by emission by) (unit: t)
- Note : BenQ Materials has no greenhouse gas emissions from PFCs or SF6, and no biogenic greenhouse gas emissions.
- Note 1: Operating sites subject to third-party verification include BenQ Materials Headquarters, Taoyuan Plant, Longtan Plant, Yunlin Plant, Suzhou Plant, Wuhu Plant, Lian He Medical, Hailu Plant, BMC (No. 28), BMM, DTB, and subsidiaries Web-Pro (including the Vietnam Plant), Cenefom, and GeneJet. Among them, Scope 3 GHG inventories began in 2019 for Headquarters and Taiwan plants, and in 2022 for overseas plants. Subsidiaries GeneJet, Cenefom, and WebPro (including the Vietnam Plant) began conducting GHG inventories in 2025, covering Scopes 1, 2, and 3.
- Note 2: The greenhouse gas inventory adopts ISO 14064-1: 2018. Since 2023, all plants have passed third-party verification conducted by external verification institutions. Subsidiaries passed third-party verification conducted by external verification institutions in 2025.
- Note 3: The electricity emission factor for Taiwan sites adopts the 2024 electricity carbon emission factor announced by the Bureau of Energy in 2025, namely 0.474 kg CO2e/kWh.
- Note 4: The electricity emission factor for China sites adopts the 2023 national average electricity carbon dioxide emission factor announced by the Ministry of Ecology and Environment of China, namely 0.5306 metric tons CO2e/MWh.
- Note 5: The electricity emission factor for Vietnam sites adopts the 2022 Vietnam grid emission factor announced by the Department of Climate Change under the Ministry of Natural Resources and Environment of Vietnam, namely 0.6592 metric tons CO2e/MWh.
- Note 6: The organizational boundaries for BenQ Materials Headquarters, Taoyuan Plant, Longtan Plant, Yunlin Plant, Suzhou Plant, Wuhu Plant, Sigma Medical, Hailu Plant, BMC (No. 28), BMM, DTB, and subsidiaries Web-Pro (including the Vietnam Plant), Cenefom, and GeneJet are set using the operational control approach.
- Note 7: GWP Values Referenced: BenQ Materials Headquarters, Taoyuan Plant, Longtan Plant, Yunlin Plant, Sigma Medical, Hailu Plant, and BMC (No. 28): calculated using the IPCC Fifth Assessment Report (AR5).Suzhou Plant, Wuhu Plant, BMM, DTB, and subsidiaries Web-Pro (including the Vietnam Plant), Cenefom, and GeneJet: calculated using the IPCC Sixth Assessment Report (AR6).
Scope 3 detail imformation
Sustainability Topic Management Approach
