| The demand for renewable energy and the development of climate risk regulations. |
Increased operating costs. (such as increased regulatory compliance costs, expenditures related to renewable energy, or management fees). Considering factors such as business expansion, assuming a 5% annual growth rate in the group's carbon emissions (Scope 1 and Scope 2) based on location-based emissions, and with no other means of carbon offset, the estimated annual carbon cost under this stringent scenario due to carbon fee regulations is as follows:
1. Appx. $36-45 million USD in 2030 (based on IEA 2° C scenario).
2. Appx. $40-55 million USD in 2030 (based on IEA below 2° C scenario).
3. Appx. $67-89 million USD in 2040 (based on IEA below 2° C scenario).
4. Appx. $190-240 million USD in 2050 (based on IEA NZE scenario) |
We evaluated the global market and sourced renewable energy through diverse approaches to achieve energy transformation and green manufacturing. In 2023, over 190 million kWh of renewable energy certificates were purchased, and approximately 46.593 million kWh of green electricity was procured through Power Purchase Agreements (PPA) and other means. Additionally, solar panels installed at various sites generated approximately 15.505 million kWh for self-use. This achieved the annual target of 66.47% green electricity share for 2023. A long-term goal has been set to gradually increase the proportion of renewable energy used to 100%. |
| Increase in demand for low-carbon products and services |
Increased expenses for product development, certification, and procurement |
- Help customers obtain various environmental protection labels such as Energy Star, EPEAT, TCO, Taiwan Green Mark, and China Environmental Labelling. In 2023, we helped our clients secure Energy Star certification for major hardware products such as laptops, desktops, all-in-one computers, monitors, servers, and network phones; certified products accounted for 82.2% of hardware revenue. Major hardware products certified with EPEAT, TCO, Taiwan Eco-label, and China Environmental Label accounted for 86.4% of hardware revenue. All product lines meet 100% of customer requirements and comply with local environmental regulations, energy efficiency labels, and safety certification requirements.
- Establish a sustainable supply chain management to ensure the transparency of the carbon footprint of products or services and implement reduction measures.
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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 13.9% in 2023; 383 patents and 43 green product patents were obtained in 2023.
- Since 2023, Wistron has been recognized by Top 100 Global Innovators™ by Clarivate for three consecutive years and is also listed as one of the top 20 sustainable innovation companies in Taiwan by LexisNexis.
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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 15% 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 2023, a total electricity savings of approximately 17.92 million kWh resulted in a reduction of approximately 11,564 metric tons of carbon emissions. While actively reducing operational costs, resources are being allocated to lower the carbon footprint of operational activities. |
