Issue Date: July 20, 2025
 

Climate Change Management

To effectively mitigate the significant economic, social, and environmental impacts of extreme climate events, Coretronic adopted the Task Force on Climate-related Financial Disclosures (TCFD) framework in 2020 to reassess climate change risks. Centered around low-carbon products and green operations, the Company has formulated energy-saving and carbon reduction strategies to help curb the greenhouse effect. In alignment with the “Paris Agreement”, Coretronic set its carbon reduction targets based on the Science-Based Targets (SBT)^* absolute reduction pathway under the “1.5°C warming” scenario. In 2022, the Company publicly announced its “Net Zero Commitment” and submitted its commitment letter to the SBTi. In 2023, it submitted its SBT carbon reduction targets: Reduce absolute Scope 1 and 2 GHG emissions 50.4% by 2032 from a 2021 base year, and reduce absolute Scope 3 GHG emissions 30% within the same timeframe. These targets were approved by the SBTi in 2024. To achieve net zero by 2050, Coretronic is actively reducing fossil fuel use, increasing renewable energy usage, transitioning to innovative low-carbon technologies, and incorporating the environmental cost of carbon emissions into business planning through internal carbon pricing and other diversified measures. In 2024, the Company conducted its greenhouse gas inventory following the ISO 14064:2018 standard, identifying emission sources for Scope 1 through Scope 3. The organizational boundary for this inventory includes facilities under operational control at Taiwan plants (Headquarters, Chunan Plant, Tainan Plant 1, and Tainan Plant 2) and China plants (Coretronic Optotech (Suzhou), Coretronic Optics (Suzhou), Coretronic Projection (Kunshan), and Coretronic Optics (Kunshan)).
*Science-Based Targets (SBT) aim to limit global warming within 1.5°C by scientifically calculating the reasonable carbon reduction quotas for global industries and enterprises.

Climate Change Management Framework (TCFD)




Identification of Climate-Related Risks and Opportunities

Amid growing attention to climate-related regulations and net-zero targets, Coretronic has proactively engaged in and monitored international sustainability initiatives. In 2021, the Company conducted its first climate-related risk and opportunity identification and financial impact analysis using the TCFD framework, and updated the assessment with revised risk and opportunity focus areas in 2023. Based on international climate change trends and stakeholder concerns, various climate-related risks and opportunities were identified in 2023, including transition risks (policy and legal risks, technology risks, market risks, and reputational risks), physical risks (acute and chronic), and other risks and opportunities. A comprehensive list of climate risks and opportunities was established, resulting in the identification of 6 transition risks, 1 physical/other risk, and 7 opportunities. Each identified risk and opportunity were quantitatively evaluated based on the potential impact type, impact severity, and occurrence likelihood. The risks and opportunities were then categorized and ranked according to the assessment results. Corresponding response strategies were developed to mitigate negative impacts, enhance organizational climate resilience, and create future business opportunities. In addition to climate-related risk and opportunity identification, potential financial impact of each item was analyzed to support the development of targeted response strategies. Based on the risks identified in 2023, Coretronic will continue to implement mitigation strategies in 2024 to effectively address future climate challenges.

Climate-Related Risk and Opportunity Matrix



Potential Financial Risk Analysis Climate-Related Risks and Opportunities

＊Coretronic will estimate the financial impact, costs, or revenue projections related to risks and opportunities, and disclose the results once completed.

Strategies for Addressing Climate-Related Risks and Opportunities

Coretronic announced its “Net Zero Commitment”, joined the “Taiwan Climate Partnership” and the “Taiwan Alliance for Net Zero Emission”, and actively supports and participates in key domestic and international initiatives such as TCFD, CDP, and SBTi, demonstrating its strong commitment to environmental sustainability.

• In 2022, Coretronic submitted the commitment letter to the SBTi, setting targets based on the 1.5°C scenario. In 2023, the Company formally submitted science-based targets aligned with the 1.5°C scenario: “Reduce absolute Scope 1 and 2 GHG emissions 50.4% by 2032 from a 2021 base year, and reduce absolute Scope 3 GHG emissions 30% within the same timeframe”. These targets were officially approved by SBTi in 2024, laying a solid foundation for the Company’s long-term carbon reduction strategy.
  
  
   
• Coretronic has submitted CDP disclosures for 6 consecutive years. In 2024, the Company received a double “A” rating (A List) for both Climate Change and Water Security, demonstrating outstanding performance in climate action and water resource management.
• In 2024, the Company’s Scope 1 and 2 GHG emissions totaled 23,404.7 tCO₂e, representing a 51% reduction compared to 2021, significantly exceeding the expected SBT carbon reduction pathway.