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 – high temperature |
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 Simulation
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.
Scenario Assumption | Scenario simulation results |
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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. |