Climate Change Strategy and Management

Climate Change Strategy and Management

As the world's largest provider of industrial computer and Internet of Things technologies and services, Advantech understands its responsibility to the global environment. The Company's policy statement on climate change is aligned with the Paris Agreement's goal of keeping warming below 1.5°C. The Science Based Target (SBT) was adopted and committed in 2021. Since then, we have further committed to join the RE100 initiative and set a net zero carbon emission target in 2023. Renewable energy is regarded as an important strategy towards net zero emissions, and it is planned to achieve 50% renewable energy use in Taiwan and Kunshan, China by 2030. Also, we will achieve 100% global renewable energy use by 2040 to achieve the goal of RE100, and achieve the goal of net zero carbon emissions by 2050.

Advantech has included climate change as one of the material risk projects of corporate sustainable management, and has managed it according to the two standpoints of "mitigation" and "adaptation." Meanwhile, we are also actively identifying risks, building adaptation capabilities, further researching and analyzing opportunities for climate change, and accumulating and deepening R&D momentum. We continue to invest in eco energy and in energy-saving products and solutions, and we are integrating them with the core business of energy management to promote energy saving and sustainability.

Advantech's Net Zero Vision

Advantech's Climate Change Development History

Extreme weather events caused by climate change, the pressure for low-carbon transition brought about by the aggressive carbon reduction goals of various countries, and the carbon reduction requirements imposed upon the upstream and downstream of the value chain have already caused enterprises to face potential operational impacts. In response to the global demand for a stronger linkage between the identification of climate risks and financial impacts, Advantech has integrated cross-departmental resources from the ESG Corporate Sustainability Development Office and introduced the Task Force on Climate-related Financial Disclosures (TCFD) under the promotion of the Corporate Sustainable Development Committee (SDC). It has followed the TCFD guidelines and recommendations to systematically measure the Company's climate risks and opportunities, deeply assess the existing risk management procedures which focused on climate change in the Pan-Operational Risk Map. The assessment results and response plan has also been reported to the Senior management of the SDC for confirmation, and the SDC will report the progress of climate management to the Board of Directors on a regular basis to enhance the Company's resilience in responding to climate risks.

Advantech ESG Corporate Sustainability Development Office convenes cross-departmental members to define risks and opportunities according to the TCFD guidelines. Through the collection of multi-faceted issues, cross-departmental discussions, and external consultations to specifically identify Advantech's major risk and opportunity issues and their corresponding potential issues and impact levels, and analyze the possible financial impact. The three major aspects with industry characteristics and international contexts as the focus: operations (reduction, natural disasters), products/supply chain, and markets, in order to inventory the company's overall climate risks and opportunities, and accurately propose relevant countermeasures. Therefore, the Company's climate risk management covers the entire value chain (upstream, downstream, and own operations).