Greenhouse Gas Inventory and Energy Resource Management
Adheres to the original devotion to the idea of being a global citizen, Advantech has completed third-party verification since 2019, in addition to the self-assessment required by ISO 14064-1:2018 and the GHG Protocol. In recent years, we have continued to implement GHG management based on the results of our annual inventory checks. We have also made efforts in product design, product material management, product energy efficiency improvement, and renewable energy use. Starting from 2023, in addition to completing the ISO 50001 certification in 2023 for Taiwan and Kunshan Factories, Advantech joined the RE100 initiative on the same year, announcing to fully use renewable energy by 2040. Currently, Kunshan and Europe are both using renewable energy. This chapter's writing scope covers Advantech's main global operations and production factories, together accounting for 92.6% of total consolidated revenue.
Highlighted Projects
Phased Achievements and Future Goals of Greenhouse Gas Management
Greenhouse Gas Inventory and Management
In order to create a low-carbon emission business environment, Advantech has established the “Greenhouse Gas Inventory Promotion Committee” based on the quantification, monitoring, reporting, and verification procedures for GHG inventory provided by Taiwan's Climate Change Response Act and the ISO 14064-1 standards to promote GHG inventory and reduction work in order to reduce direct and indirect GHG emissions year by year. And joined the Carbon Disclosure Project (CDP) since 2015 to disclose the Company's carbon reduction plans and performance annually.
Greenhouse Gas Inventory
Advantech's verified main operating locations and production factories in the GHG inventory
verification process in recent years are ACL and AKMC. Starting from 2024, these will be
included in the main overseas operating locations and production areas.
ACL refers to ISO 14064-1 and the GHG protocol, in addition to requiring self inventory, and
had also undergone third-party on-site verification by a third-party verification agency since
2019. Organizational boundaries are based on the requirements of ISO 14064-1:2018. The
boundaries of the organization are set based on operational control, and the Company's
GHG inventory management procedures, inventory report, and emission source inventory are
established. The organizational boundary includes Rueiguang Headquarters, Taipei Sunny
Building, Donghu factory, and Linkou Campus. In addition to the qualitative and quantitative
inventory of Scope 1 (Category 1 direct GHG emissions) and Scope 2 (Category 2 indirect
GHG emissions associated with energy production), inventory the emission sources of Scope 3 (Categories 3, 4 and 5 indirect GHG emissions). In 2023, the total emission of Scope 1
emissions from ACL was 615.4740 metric tons of CO2e.
In 2015, AKMC conducted its first ISO14064-1 GHG emissions inventory for 2014, which was
verified on-site by the China Quality Certification Center (CQC), a third party. The results of
the 2023 inventory showed that AKMC generated a total of 2,530.75 metric tons of CO2e. In
addition, this year, we strengthened the inventory of GHG emissions from Scope 1 energy use
at our sites in Japan, Korea, the U.S., and Europe. The emissions in each region are shown in
Table 4.3.1, and we will continue to expand the scope of the inventory in the future.
Scope 1 GHG emissions by Advantech's Main Global Operations and Production Factories in 2023
Among Advantech's Taiwan factories(ACL), Scope 2 only involve the use of purchased electricity. Carbon emissions are calculated based on the 2022 electricity carbon emission factor
of 0.495 kg CO2e announced by the Bureau of Energy, Ministry of Economic Affairs, which amounts to 9,723.0184 metric tons of CO2e. For Advantech's Kunshan factories(AKMC),
Scope 2 includes the use of purchased electricity and purchased steam, a total of 15,399.91 metric tons of CO2e (market-based). The carbon emission calculation of electricity refers
to the emission factor of “The average carbon dioxide emission factor of China's regional power grid in 2011 and 2012.” The emission factor for East China Regional Power Grid
in 2012 was 0.7035 kgCO2e; the carbon emissions from steam were calculated based on the “Guidelines for Accounting Methods and Reporting of Greenhouse Gas Emissions of
Enterprises in Other Industries"; the emission factor for steam was 110 kg CO2/GJ. In addition, factories in Japan(AJP), Korea(AKR), USA(ANA) and European(AEU) use purchased
electricity only among scope 2 GHG emission. The electricity emission factors for AJP, AKR, and ANA are derived from the electricity emission factors announced by their respective
countries, and are 0.3650 kgCO2e/kWh, 0.4781 kgCO2e/kWh, and 0.2079 kgCO2e/kWh, respectively; the emission factor for AEU is 0 kg CO2e/kWh, as AEU relies entirely on renewable
energy sources.
Table 4.3.2 shows the amount of Scope 1 and Scope 2 GHG emissions from Advantech's main operating and production factories. The total Scope 1 and Scope 2 emissions in
2023 were 29,866.6190 metric tons of CO2e (Market-based). Figure 4.3.2 shows the amount of Scope 1 and Scope 2 GHG emissions by Advantech's main operating locations and
production factories in recent years.
Scope 1 and Scope 2 GHG emissions by Advantech's Main Global Operations and Production Factories in 2023
1. The GHG inventory check of AJP, AKR, ANA, AEU has not been verified by third party.
2. In the market-based calculation, the GHG emissions from renewable energy sources in AKMC and AEU were calculated with the electricity emission factor as 0.
In 2023, the average amount of GHG emissions per unit of revenue (Scope 1 and Scope 2) of Advantech's main operating locations and production factories was 0.463 tons CO2e/NT$ million revenue, reduced by 24.3% and 9.0% respectively compared with 2019 and 2022, and continue to move towards the SBT goal of 60% reduction by 2030, as shown in Figure 4.3.2. In 2023, in addition to establishing an energy management policy and adopting the ISO 50001 energy management system, Advantech uses its iEMS intelligent energy management platform to monitor energy consumption in real time, optimize equipment operation and improve power consumption efficiency. It also holds energy project meetings regularly. We share and interact to continuously improve energy efficiency. In the future, we will continue to set the goal of GHG reduction per unit of sales per year. In addition to achieving the goals set by the SBT announcement, this will also deeply embed the concept of energy saving in the hearts of colleagues and help it become an important part of the Company's culture.
Scope 1 and Scope 2 greenhouse gas emissions of Advantech's main global operations and production factories in recent years
1. The 2020 GHG emissions from electricity use was not available in Korea and the United States, while emissions from other energy sources were not available in the United States.
2. In 2023, statistics for Scope 1 GHG emissions from AJP, AKR, ANA, AEU were added. and the scope 2 emissions in AJP and AKR have been updated due to the emission factors changed.
3. The scope 2 data are GHG emissions from "market-based" sources
GHG emission intensity and SBT carbon reduction roadmap of Advantech’s main operating locations and production factories in recent years
In order to find out the key factors for climate change, in addition to the GHG emissions from its own operations, Advantech Taiwan has also started to identify the significance of other indirect emission sources according to the ISO14064-1 inventory method since 2019, and has established related inventory methodologies to identify emission hotspots, set reduction targets, and gradually implement reduction measures. Advantech's Scope 3 identification and emissions in 2023 for Taiwan and Kunshan, China are shown in Table 4.3.3. Among them, Advantech's Scope 3 GHG emissions per unit of revenue in 2023 decreased by 8.71% compared to 2022, which is mainly due to the 14.31% reduction in C11 (product use) (carbon reduction: 173,769.64 tons CO2e). The Scope 3 emissions reduction will continue in the future through internal energy-saving label, energy-saving product designs, power efficiency improvement, and the promotion of internal carbon pricing.
Scope 3 identification and emissions of greenhouse gases from Advantech Taiwan and Kunshan factories
1. Scope 3 C1-C15 correspond to ISO14064-1:2018 Categories 3-6
2. The use of products and the disposal of products are the scope of the global inspection of Advantech.
Energy Data Management
The main source of GHG emissions from Advantech's factories is the carbon dioxide generated during the generation of purchased electricity required for the Company's operations. This source of emissions accounted for over 80% of the Company's overall emissions in 2023. In 2023, the overall energy (electricity, steam, gasoline, diesel, natural gas) consumption of Advantech's main operating locations and production factories was 201,449.24 GJ, of which purchased electricity accounted for 82.34% of the energy consumption (including 5.34% of the renewable energy use), and the total consumption is 9.73% lower than in 2022.
Electricity Consumption among Advantech's Main Operations and Production Factories in Recent Years
1. No statistics on consumption in 2020 for AKR and the ANA.
2. The 2022 electricity consumption data for AJP and AKR has been revised, so the total data has been revised from 49,509.69 MWh to 49,461.26 MWh.
Non-renewable Fuels Consumption among Advantech‘s Main Operations and Production Factories in Recent Years
1. No statistics for 2020 was reported for the ANA.
2. The 2022 natural gas data for ANA has been revised, so the total data has been revised from 7,702.30 MWh to 7,703.56 MWh.
Non-renewable energy consumption(purchased steam) by Advantech’s main operating locations and production plants in recently years.
Energy Management Action
Electricity is Advantech's main energy source. Therefore, in order to reduce the environmental impact of products and production activities, and improve energy efficiency and renewable energy ratio, Advantech has established an energy management policy and implemented ISO 50001 Energy management systems at main production factories (ACL and AKMC). The management system systematizes the processes of energy review, energy-saving solutions, and benefit analysis; we have also established the iEMS intelligent energy management platform to enable real-time monitoring of energy consumption, optimize equipment operations, and enhance power efficiency. Since 2023, Advantech has become a member of RE100 and committed to the global RE100 goal and launched global projects. Advantech’s energy management team also regularly holds energy project meetings to follow up on the implementation progress, and continues to improve energy efficiency and the use of renewable energy through sharing and interaction among factories.
Energy Efficiency Management Mechanism
Advantech has established an internal energy management mechanism and introduced the ISO 50001 Energy management systems. Through the effective operation of the management system, Advantech implements source management from the procurement side, evaluates the organization's energy consumption through energy review, and identifies energy consumption hot spots. This is combined with the self-developed iEMS. We implement real-time monitoring using the system’s energy dashboard to manage major energy-consuming equipment to ensure optimal energy efficiency. We also formulate energy-saving solution benefit analysis processes in a series for continuous improvement, constantly optimize energy management processes and measures, and continuously improve energy efficiency.
Advantech effectively implemented the iEMS (Intelligent Energy Management System) intelligent energy management solution across its operating locations in the United States and Europe in 2023. Through digital professional integration technology, we provide energy consumption monitoring and management, HVAC energy efficiency management, air compressor energy efficiency management and other functional solutions. This solution featured energy efficiency management capabilities, which assisted organizations in optimizing energy consumption, enhancing energy efficiency, capitalizing on energy-saving opportunities, and facilitating carbon trading. The objective is to facilitate low-carbonization via digitalization, enable businesses to conserve energy and decrease emissions through the management of online data in order to drive offline improvement, and aid the Company in transitioning to environmentally sustainable operation.
Since becoming a RE100 member in 2023, Advantech has been actively taking the following measures to ensure that Advantech achieves 100% renewable energy use globally by 2040.
Advantech prioritizes self-generation and self-consumption, and encourages local factories to install solar photovoltaic panels for self-generation and self-use. Examples include the installation of solar photovoltaic panels at the Linkou campus of the Headquarters, the Kunshan factory of China, and the New HQ phase-I facility (AASC-II) in the United States. The investment in the fish-electricity symbiosis solar power plant (located in Tainan, Taiwan), which started in 2021, is expected to open at the end of 2024. In the future, we hope to supply 5% of Taiwan's renewable energy in the first year. Secondly, purchase renewable energy directly from local areas. For example, Advantech's operating location in the Netherlands adopted direct purchase of local renewable energy generated from solar power and wind power. And, purchase renewable energy certificates based on local assessment needs. For example, Advantech Japan is actively negotiating matters such as the purchase of renewable energy certificates and renewable energy.
Future Plans
Looking to the future, Advantech integrated the Taiwan factory and concentrated production in the Linkou Phase 2 Intelligent Factory. Furthermore, through the energy management system and production line optimization management mechanism, we will achieve energy consumption reduction targets and reduce electricity consumption to realize energy saving benefits. The Intelligent Energy Management System (iEMS) is also expected to complete the Global Roll Out project by 2024. Important overseas operating bases such as the United States, Europe, and Japan are also gradually planning solar power generation installations or suitable local renewable energy solutions.