Climate Change Management
In 2021, BenQ Materials' ESG Sustainability Committee set a target of achieving net-zero emissions by 2050. Combining greenhouse gas inventory information and its own development trends, the company has formulated short-, medium-, and longterm carbon reduction targets and strategies. To mitigate and adapt to climate change, the company continuously promotes the ISO 14001 environmental management system, ISO 50001 energy management system, and various energy and resource conservation activities. In recent years, the company has also invested in new AI technology applications and new equipment to enhance production efficiency and transition to low-carbon production. This includes the installation of solar power generation systems within the plant to use renewable energy, active development of low-carbon green products, and collaboration with sustainable supply chain partners, all aimed at comprehensive development towards a low-carbon, green, and sustainable enterprise.
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
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
|
- The Board of Directors regularly reviews climate change-related risks and opportunities:
• Starting from 2022, an annual report on the operation of climate change-related issues is presented to the Board of Directors and the Audit Committee. The report for 2023 was completed on November 2.
• The organization chart of the Climate Change Management Task Force is shown above. Each year, the task force identifies and evaluates climate change risks and opportunities, comprehensively considering potential financial impacts and other influences. It formulates climate change adaptation plans, with management review meetings chaired by the Chairman/Vice Chairman to ensure timely provision of resources and alignment of climate change adaptation actions with the company's strategic direction. |
| Strategy |
- According to the climate change risk and opportunity assessment methodology, the internal definitions are as follows:
• Time scales for potential impacts: short-term is defined as 0-3 years, medium-term as 3-5 years, and long-term as 5-10 years.
• Risk impact considerations include the effects on assets and finances, product and service impacts, personnel impacts, and reputational impacts.
- Through identification and assessment, five major risks and opportunities were focused on:
• Risks: Raw material shortages or cost increases (short-term), extreme weather events (short-term), average temperature rise (medium-term), changes in rainfall patterns (medium-term), strengthened carbon emission disclosure requirements/carbon pricing mechanisms (short-term).
• Opportunities: Development and innovation of new products and services (short-term), related to renewable energy and energy saving (short-term), development and/or increase of low-carbon products and services (short-term), reduction in water use and consumption (long-term), use of new technologies (medium-term), and entry into new markets (medium-term).
- Scenario setting directions include:
• Transition scenarios: changes in regulations/policies/product demand/green inflation transition scenarios.
• Physical scenarios: referencing SSP5-8.5 (extreme high emissions scenario) from the IPCC Sixth Assessment Report (AR6); due to insufficient external literature, the IPCC Fifth Assessment Report (AR5) RCP8.5 scenario is used for mainland China facilities. |
Risk Management
|
- Using the TCFD framework to establish a climate change identification process:
• Deploy the TCFD framework to identify and assess risks, including transition risks (current regulations, emerging regulations, legal, policy regulations, technology, market, reputation) and physical risks (immediate and long-term).
• Prioritize and analyze the results of the identification and assessment, and report to the Climate Change Management Task Force during the annual management review meeting to ensure the effectiveness of operations.
- Integration of climate-related issues into corporate risk management processes:
• Include high-risk issues in high-level meetings for management; annually review changes in transition risks and physical risks, and make rolling adjustments to adaptation action plans. |
| Metrics and Targets |
- Climate Change Performance Management Targets:
• Renewable Energy Proportion: Set a target to increase the proportion of renewable energy to 100% by 2040.
• Greenhouse Gas Emissions: Reduce greenhouse gas emissions by 30% by 2030 compared to the baseline year of 2020.
• Achieve net-zero emissions by 2050 and meet key climate goals related to product design
- Conduct an annual greenhouse gas inventory through ISO 14064-1:2018 to assess company risks and formulate feasible mitigation strategies:
• Perform the inventory according to ISO 14064-1:2018 and obtain third-party verification statements.
• Reduce greenhouse gas emissions by 30% by 2030 compared to the baseline year of 2020.
• Achieve net-zero emissions by 2050 and meet key climate goals related to product design.
• Detailed climate change adaptation action plans are provided in the table below. |
GHG inventory
In 2023, greenhouse gas emissions (Scope 1 + Scope 2) amounted to 41,744.00 tons of CO2e, a decrease of 21.12% compared to 2022 and a decrease of 27.45% compared to 2020. Analyzing the greenhouse gas emission intensity (Scope 1 + Scope 2), it has decreased annually since 2017. In 2023, the intensity was 2.44 (tons of CO2e per million NTD), a decrease of 28.43% compared to 2022 and a decrease of 36.25% compared to 2020. This reduction was mainly due to the introduction of renewable energy and energysaving carbon reduction investment projects. In 2023, Scope 3 greenhouse gas emissions were 31,090.88 tons of CO2e, an increase of 222.35% compared to 2022 and an increase of 226.35% compared to 2020. The increase in Scope 3 emissions in 2023 was due to the additional inventory and quantification of employee commuting and downstream transportation and distribution items.
GHG Emissions - by scope
GHG Emissions (by scope) (unit: tCO2e)
GHG Emissions (by emission by) (unit: t)
- Note: We did not have PFCs and SF6 emissions.
GHG Emissions Intensity Over the Years
GHG Emissions Intensity Over the Years (unit: tCO2e/NT$1 million revenue)
- Note 1: Operational sites verified by third-party units include: BenQ Materials headquarters, Taoyuan Plant, Longke Plant, Yunke Plant, Suzhou Plant, Wuhu Plant, Lianhe Medical Materials, Hailu Plant, BMC (Dormitory), BMM, and DTB. Scope 3 inventories for headquarters and Taiwan plants began in 2019, while overseas plants began in 2022. Subsidiaries (Webpro, Cenefom, and Genejet Biotech) have only completed self-inventories, and their data has not yet been included in the disclosure scope.
- Note 2: The greenhouse gas inventory adopts the ISO 14064-1:2018 version. In 2023, all plants in Taiwan and China passed third-party verification by external verification bodies.
- Note 3: The power emission coefficient for Taiwan sites is based on the 2022 power carbon emission coefficient of 0.495 tons CO2e per megawatt-hour (MWh) published by the Bureau of Energy in 2023.
- Note 4: The power emission coefficient for China sites is based on the national grid average emission factor for 2022 of 0.5703 tons CO2e per megawatt-hour (MWh) published by the Ministry of Ecology and Environment of China.
