Climate Governance


Task Force on Climate-related Financial Disclosures (TCFD)
Climate change not only threatens humanity and ecological environments but also poses direct or indirect impacts on corporate operations. Inventec proactively discloses climaterelated information in line with the Task Force on Climate-related Financial Disclosures (TCFD) guidelines. The Company also reviews its governance, strategy, risk management and key metrics annually to strengthen climate change management and enhance its capability to control climate risks, with the aim of improving the eectiveness of its business decision making.
Category | Inventec’s Actions |
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Governance |
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Strategy |
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Risk Management |
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Indicators and Targets |
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Inventec Climate Risk Matrix
- Circle size:Likelihood high, moderate and low.
Climate Risk Summary Table
Type | Dimension | Item |
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Transition Risk | Regulations and policy (inculding leagl risks) | Increased sustainability-related requirements and norms |
Increased cost of greenhouse gas emissions | ||
Technology | Low-carbon technology transformation cost | |
Market | Changes in customer behavior | |
Reputation | Increased negative feedback from stakeholders | |
Physical Risk | Chronic Risk | Rising average temperature |
Acute Risk | Increased extreme weather events - typhoon/rainstorm | |
Extreme weather events – extreme low temperature | ||
Increased extreme weather events - drought | ||
Increased extreme weather events – heat |
Adaptation and Mitigation Measures for High-risk Issues
- Actively cooperate with customers and voluntarily carry out product carbon footprint related activities within the value chain.
- Complete various applications for energy efficiency labels, product carbon labels, etc.
- Adopt the SBT Science Based Target Reduction Tool to set goals.
- Continuously build and implement disaster emergency response measures and business continuity plans (BCP), and work with supply chain partners to reduce the impact.
Analysis of the Value Chain Impacts Arising from Major Climate-related Risks
Issues | Value Chain Impact Assessment | |||
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Upstream suppliers | Inventec | Downstream clients | ||
Transition Risks | Changes in customer behavior | Moderate | High | Low |
Transition costs of low-carbon technologies | Low | High | Moderate | |
Physical Risks | Extreme weather events - heat | Moderate | High | Moderate |
Diagrams of Major Climate-related Risks
- Changes in customer behavior
- Transition costs of low-carbon technologies
- Extreme weather events - heat
Scenario Analysis of Transition Risk Arising from Changes in Customer Behavior
- "Transition risk - high proportion of renewable energy and process energy saving" due to changes in customer behavior is used as the quantitative assessment and analysis item for potential financial impact.
- The assessment includes Inventec's major production sites in Taiwan, Mainland China, Mexico, and the Czech Republic.
- Simulations for 2025-2030 are conducted based on the Business as Usual (BAU) scenario, which projects current development trends, and the 2050 net-zero strategy scenario.
- Evaluate and analyze the process energy saving and renewable energy procurement required by each factory to achieve the 2050 net-zero strategy.
- Calculate the cumulative costs of process energy saving and renewable energy procurement by 2050.
Mitigation and Adaptation Actions
- Formulate future response plans and action strategies.
Scenario Analysis of Physical Risk Arising from Extreme weather events - heat
- Based on climate risk ranking, likelihood, and management expansion scope, we conducted a quantitative assessment of the potential impact of the three risks in the short-term materiality analysis, "Transition costs of low carbon technologies, Increase in extreme weather events - heat, Changes in customer behavior". Therefore, we decided to use "Increase in extreme weather events - heat" as a further analysis and evaluation item.
- Inventec's major production bases in Taiwan, China, Mexico and Czech were included in the assessment.
- Simulations were conducted based on extreme high emission (IPCC SSP5-8.5) and very low emission (IPCC SSP1-2.6) climate scenarios from 2023 to 2050.
- Evaluate and analyze the potential impact, level and expected value of extreme high temperature in each factory area.
- Calculate the amount of impact in 2040 and 2050 (including future factory expansion plans).
Mitigation and Adaptation Actions
Formulate response plans and action plans for each factory.
1. Formulate mitigation measures for predictable scenarios and review them regularly.
2. Preliminary adaptation assessment before plant expansion plan.
Scenario Simulation
Transition Risk
Inventec conducted a scenario simulation for "transition risk arising from changes in customer behavior - high proportion of renewable energy and process energy saving" based on the Group's 2050 Scope 1 and 2 net-zero carbon reduction target (with 2020 as the baseline year). Business as Usual (BAU) scenario based on current development trends: Under the assumption of no carbon reduction measures by the Company, two scenario hypotheses were made based on the estimated annual Scope 1 and 2 carbon emissions.
Given the high uncertainty surrounding future climate change, Inventec Group will continue to implement relevant energy-saving measures, as well as renewable energy installation and procurement, to reduce carbon emissions. Additionally, we will regularly review the impact of climate-related issues on operations to ensure that we remain vigilant and adaptive to evolving medium- and long-term climate trends.
Category | Scenario Assumption | Scenario simulation results |
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Transition Risk | Self-estimated electricity consumption demand simulation: Carbon emissions were forecast based on each factory's projected future electricity consumption. | Total cumulative cost by 2050 accounts for 0.1% of 2024 revenue. |
SSP3-7 pathway electricity consumption demand simulation: Considering the international context, the "SSP3-7 scenario" from the Shared Socioeconomic Pathways (SSPs) was used to estimate carbon emissions resulting from future electricity consumption. | Total cumulative cost by 2050 is approximately 0.6% of 2024 revenue. |
Physical Risk
Inventec quantified the financial impacts of extreme heat risks using physical risk climate scenarios from the IPCC SSP1-2.6 (low emissions) and SSP5-8.5 (high emissions). These scenarios assess potential impacts under different policies, reflecting future global conditions under either low-carbon transition or continued economic growth driven heavily by fossil fuels. The assessment focused on simulation and evaluation periods in 2040 and 2050, because data before 2040 may not clearly reflect scenario changes. According to IPCC AR6, by 2040, there is a high likelihood of global temperatures rising to 1.5°C under any emission scenario. Therefore, post2040 timelines were selected to simulate and evaluate potential impacts on critical production sites at Inventec, reflecting the global net zero targets and their joint achievement timeline. Additionally, climate physical risk management was based on metrics such as "adaptation plans under high temperature conditions at production sites" and "tracking indicators significantly affected by power shortage risks." These measures served as criteria for assessing the severity of risks, facilitating controlled adjustments and preventive measures.
Category | Major Production Base Note 1 | Risk level | Financial Impact Note 2 | Mitigation Measures | |||
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2040年 | 2050年 | ||||||
SSP1-2.6 | SSP5-8.5 | SSP1-2.6 | SSP5-8.5 | ||||
Physical Risk | Mexico | High | High | High | Low | Medium | 1. Establish relevant response mechanisms to address high-temperature disasters. 2. Develop production modes suitable for normal high-temperature conditions. |
China | High | Medium | Medium | High | High | Increase awareness and establish ongoing plans to implement relevant power outage contingency measures, such as setting up solar energy combined with energy storage systems to achieve independent power supply capability. | |
Taiwan | Medium | Low | Low | Medium | Low | 1. Gradually implement medium to long-term contingency production control plans for extreme high-temperature conditions. 2. Continuously monitor extreme high-temperature fluctuations and adjust contingency levels promptly as needed. |
Note 1: ICZ is excluded due to lower local temperatures and absence of extreme heat risks in climate scenarios. IET is also excluded because it has minimal production activities, which allows for faster response even in case of extreme heat conditions.
Note 2: Financial impact is assessed based on the proportion of 2022 Group revenue.
Note 3: Currently evaluated operational sites cover 100% of all existing production plants. Additionally, the assessment for 100% of the new expansion in Mexico has been synchronized to address future climate risks