Regulatory developments in renewable energy demand and climate risk |
Increases in operating costs (such as higher legal compliance cost or increase in management fees). The Company is expected to reach the target of 100% renewable energy use in 2030. Green energy certificate fees are expected to increase annual cost by 300 to 600 million NTD. The annual carbon fees and costs due to legal requirements are:
- 40 to 50 million USD in 2030 (IEA 2°C scenario)
- 50 to 60 million USD in 2030 (IEA below 2°C scenario)
- 240 to 310 million USD in 2050 (IEA NZE scenario)
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Assessed in the global market, renewable energy is obtained in multiple ways to achieve the vision of energy transformation and green manufacturing.
In 2022, more than 260 million kilowatt-hours of renewable energy certificates were purchased, and the long-term goal of increasing the utilization rate of renewable energy up to 100% was set. |
Increase in demand for low-carbon products and services |
Reduce operating costs |
- Help customers obtain various environmental protection labels such as Energy Star, EPEAT, TCO, Taiwan Green Mark, and China Environmental Labelling. In 2022, the company's products that assist brand customers to obtain various environmental protection labels account for 85.07% of hardware revenue. All product lines are 100% in compliance with customer requirements, environmental protection laws and regulations, energy consumption labels and safety regulations in various regions.
- The sustainable supply chain management mechanism is established to ensure the transparency of the carbon footprint of products or services, and the reduction measures are carried out.
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Mandatory reporting of carbon emissions |
Increase operating costs |
The Company established a comprehensive greenhouse gas list and inventory system as well as methodology for all manufacturing sites across the world.
We implement greenhouse gas inventory every year and pass third-party verification from an impartial third party. |
Demand for new low-carbon technologies |
Increase in operating costs (e.g., higher R&D cost or increase in patent licensing expenses) |
- The innovation culture in the organization is stimulated, and the patent and technology layout is continuously optimized to enhance the competitiveness. The ratio of R&D personnel to employees has continued to increase, reaching 13.4% in 2022; 414 patents and 34 green product patents were obtained in 2022.
- Since 2022, Wistron has been recognized by Top 100 Global Innovators™ by Clarivate for two consecutive years.
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Drought |
Manufacturing is impacted, causing operating revenue loss. For the production capacity that has not been transferred, the operating losses due production stoppages caused by severe droughts were 180 million to 3 billion NTD (RCP 8.5). |
The new sites of plants are enhanced with planned rainwater recovery systems and water monitoring system. Also, existing plants cooperate with local water suppliers. A special water supply mechanism was activated to maintain the operation of the plant during the drought. The water recovery rate is continuously improved and short, medium and long-term goals are set. These are included in the annual performance appraisal to comprehensively improve operational resilience. |
Typhoons |
Impact on production and loss of operating revenue |
In the event of a typhoon, the Company monitors alerts and related information on whether employees should work or suspend work. If work is not suspended, the Company provides vehicles, transportation subsidies, or other necessary assistance will be provided to ensure the safety of employees. |
Floods |
Impact on production and loss of operating revenue |
The foundations of existing plants were elevated and drainage facilities were built before construction to prevent losses caused by floods. "Natural disaster evaluation" was included in siting procedures for new sites. Relevant flood control facilities are also planned to enhance the disaster resilience of operation bases. |
Uncertainty of physical risks in climate change |
Increase operating costs and impact operating revenue |
- Wistron responds to the Paris Agreement to address the challenge of global warming. Over the years, the Company complies with the SBT 1.5˚C carbon emissions reduction methodology by setting annual targets for absolute greenhouse gas reduction starting from 2020, in order to achieve the long-term goal of carbon neutrality.
- The total emission of greenhouse gases (Scope 1+2) was reduced by 22% compared with the previous year (market benchmark).
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Rise in average temperature |
Increase operating costs (e.g., increase in water and electricity charges) |
Wistron's energy conservation efforts encompass six major categories including the air conditioning system, air compressor system, green lighting, management, production, and others. In 2022, the total electricity saving was about 14,428,530 kWh. A total of approximately 10,635.76metric tons of carbon emissions could be reduced. Operating costs are reduced, while resources are actively invested in reducing the carbon footprint of operations. |