TCFD Climate Governance and Climate Change Risk Assessment

TCFD Climate Governance and Climate Change Risk Assessment

TCFD Climate Governance and Climate Change Risk Assessment

TCFD Climate Governance and Climate Change Risk Assessment

In response to climate change, Edison Opto follows the framework of the Task Force on Climate-related Financial Disclosures (TCFD). Through the four major pillars, the company gradually promotes low-carbon transformation and climate adaptation (as shown below). Upholding the belief in co-prosperity between corporate growth and the ecological environment, Edison Opto aims to realize green manufacturing, produce green products, introduce green innovations, and strengthen green management. The company continuously integrates climate change, energy management, and water management into daily operations, actively contributing to global sustainable development.

 

TCFD Disclosure Alignment Table
Aspect11 Recommended Disclosure Items by TCFDCompany’s Management Strategies and Action Plans2024 Implementation Status
Governance1. How the Board oversees climate-related issues
2. How management evaluates and manages climate-related issues		Formed by the General Manager and the management team, with the General Manager serving as the convener and the Corporate Governance Officer as the deputy convener. They are responsible for approving long-term climate change goals and management strategies, promoting relevant concrete actions, and reporting regularly to the Board of Directors (at least once a year).1. In 2024, the Corporate Governance Officer convened regular working meetings to supervise various energy-saving and carbon-reduction programs, and reported the results to the General Manager.
2. On November 1, 2024, the status of corporate governance implementation and sustainability development initiatives was reported to the Board of Directors.
3. Each quarter, the Corporate Governance Officer reported to the Board of Directors on the company’s implementation of greenhouse gas inventories.
Strategy1. Identification of short-, medium-, and long-term climate-related risks and opportunities.
2. Impact of climate-related issues on the company’s business model, strategies, and financial planning.
3. Scenario analysis (including 2°C or more serious scenarios).		Gradually plan and conduct scenario analyses to understand the impact of climate change on the company.
In response to national emission reduction policies, progressively develop action plans and adjust the company’s business direction, integrating them into the decision-making process.		1. In 2024, identified short-, medium-, and long-term climate-related risks and opportunities, and their impacts on the company’s business model, strategy, and financial planning (see table below).
2. Progressively developing low-carbon LED manufacturing technologies and initiated research on environmentally friendly, low-carbon materials.
3. Gradually developing energy-saving, low-carbon, and smart lighting products to reduce environmental impacts.
4. Gradually planning evaluations of upstream and downstream supply chains.

Risk Management

1. Climate-related risk identification and assessment process.
2. Climate-related risk management process.
3. Explanation of how the above identification and management processes are integrated into the company’s overall risk management system.		1. Referred to industry TCFD reports to identify and assess applicable risk issues for the company.
2. The company has included climate change as one of the key sustainability issues and critical risks. All plants follow the company’s established risk management policies and procedures to identify potential risk levels and situations, and to plan corresponding response measures across operations, products, and supply chain management.		Short-, medium-, and long-term goals are established. Corresponding plans are formulated, with the Corporate Governance Officer convening regular working meetings to supervise the implementation of countermeasures, report results to the Chairman, and consolidate them into the agenda of the Board of Directors for review.
Metrics and Targets1. Evaluate whether the metrics are consistent with the company's strategies and risk management.
2. Disclose Scope 1, Scope 2, and Scope 3 (if applicable) greenhouse gas emissions and related risks.
3. Manage targets and associated risks.		1. The company has initiated greenhouse gas inventory guidance by region:
A. Taiwan sites: Introduced ISO 14064-1 guidance in 2023; 2024 internal inventory data will undergo third-party external verification in 2025.
B. China sites: Introduced ISO 14064-1 guidance in 2024; 2025 internal inventory data will undergo third-party external verification in 2026.
2. Considering that the company’s capital is below NT$2 billion and based on current operations, Scope 1 and Scope 2 are prioritized. Scope 3 is included for self-inventory but not calculated in emission intensity.		1. Greenhouse gas reduction:
From January to October 2024, Edison Opto Group’s Taiwan sites reported the following GHG emissions (metric tons CO2e):
2. Scope 1: 144.8196 (metric tons CO2e)
3. Scope 2: 1,417.1407 (metric tons CO2e)
4. Scope 3: 1,057.4161 (metric tons CO2e)
5. Using 2023 as the base year, the company aims to reduce carbon emission intensity by 2% by 2025 compared with 2023. (As of October 2024, Scope 1 and Scope 2 carbon emission intensity was 1.2946.)
6. Water management: From January to October 2024, Edison Opto Group’s Taiwan sites consumed 9,369 metric tons of water.
7. Using 2023 as the base year, the company aims to reduce total water consumption intensity by 1.5% by 2025 compared with 2023. (As of October 2024, water consumption intensity was 6.38.)
8. Continue developing energy-saving, low-carbon, intelligent LED products, such as solar streetlights, ultra-high-efficiency lighting, and automotive LED products.