Category: Response to climate change

Climate change is an issue that needs the world to face together, no matter who. As a distributor in the semiconductor sector, WT has operating sites, partners, collaborators, and vendors all over the world and they are all subject to impacts of climate change. WT’s management understands the potential impact of climate change on its operations and long-term development. Since 2021, it has been promoting relevant management mechanisms and operations, formulating policies and goals, and investing resources in assessment and research on transition plans. In the future, it will continue to track the achievement of goals, and take a more aggressive course of action accordingly.

氣候變遷治理與架構

The Climate Change Risk Management Task Force convened two meetings since the fourth quarter of 2023, inviting functional and business units to identify risks and opportunities, assess financial impacts, and discuss response plans. The evaluation and planning results will be included in the operational promotion plans of relevant units and reported quarterly to the Risk Management Committee and the Board of Directors as a reference for governance.

Incorporating regular assessments and response strategy development into risk management mechanism

Climate-related risk assessment has been integrated into the existing risk management mechanism and regularly conducted by the Climate Change Risk Management Task Force. WT will continue to follow the climate change risk management process to identify risks and opportunities, evaluate response strategies, and conduct regular internal and external reports.

Scenario analysis of climate change risks
As WT does not operate in a sector with intensive or high carbon emissions, the impact of climate change is mainly on its value chain, including the transition pressure on the vendors and customers, and potential physical risks during the transport. In order to understand the impact of these transitional and physical risks on WT’s operations, WT uses scenario analysis to identify risks and opportunities. The assessment results are used for response plan development by relevant units, and for daily operation adjustment. The Board is briefed on a quarterly basis the GHG inventory and verification schedule planning progress for the parent company and subsidiaries, and requested to determine the guidelines.

Therefore, WT conducts the annual climate change risk assessment based on the SSP5-8.5 scenario for physical risk, the national target scenario for transitional risk, as well as information such as changes in laws and regulations, physical external environment, and issues of concern for sustainability assessments.

A climate change risks review identified three key risks and two opportunities

In 2023, WT reviewed the risks and opportunities identified and ranked in 2021 and selected items that may have an impact in the short term (1 to 3 years) based on the implementation benefits. After understanding their current implementation status, WT re-evaluated the impact scale and financial impact, and identified three key risks that require continued attention and two
major opportunities.

 

Respond to international trends and national goals and formulate three major indicators and goals

In response to international trends and Taiwan’s 2050 net-zero goal, WT set climate change indicators and goals in three aspects: governance and strategy, operations, and GHG reduction.

Climate change is an issue that needs the world to face together‭, ‬no matter who‭. ‬As a distributor in the semiconductor sector‭, ‬WT has operating bases‭, ‬partners‭, ‬collaborators‭, ‬and vendors all over the world and they are all subject to impacts of climate change‭. ‬WT’s management understands the potential impact of climate change on its operations and long-term development‭. ‬Since 2021‭, ‬it has been promoting relevant management mechanisms and operations‭, ‬formulating policies and goals‭, ‬and investing resources in assessment and research on transition plans‭. ‬In the future‭, ‬it will continue to track the achievement of goals‭, ‬and take a more aggressive course of action accordingly‭.‬

 

The Climate Change Risk Management Task Force has convened three meetings since the fourth quarter of 2022‭, ‬inviting functional‭ ‬and business units to identify risks and opportunities‭, ‬assess financial impacts‭, ‬and discuss response plans‭. ‬The evaluation and‭ ‬planning results were to be included in the promotion and implementation plan of relevant units‭, ‬and reported to the Board of Directorsas occasionally to support the governance‭.‬

Climate Change Risk and Opportunity Management Process

WT follows the TCFD recommendations‭, ‬WT will continue to follow the climate change risk management process to identify risks and‭ ‬opportunities‭, ‬evaluate response strategies‭, ‬and conduct regular internal and external reports‭.‬

 

Daily operations and management were analyzed to support risk assessment‭.‬

As WT is not in a sector with intensive or high carbon emissions‭, ‬the impact of climate change is mainly on its value chain‭, ‬including the transition pressure on the vendors and customers‭, ‬and potential physical risks during the transport‭. ‬In order to understand the impact of these transitional and physical risks on WT’s operations‭, ‬WT uses scenario analysis to identify risks and opportunities‭. ‬The assessment results are used for response plan development by relevant units‭, ‬and for daily operation adjustment‭. ‬The Board of Directors are briefed on a quarterly basis the GHG inventory and verification schedule planning progress for the‭ ‬parent company and subsidiaries‭, ‬and requested to determine the guidelines‭. ‬

 

Therefore‭, ‬WT conducts the annual climate change risk assessment based on the RCP 8.5‭ ‬scenario for physical risk and the national target scenario for transitional risk‭, ‬information such as changes in laws and regulations‭, ‬physical external environment‭, ‬and‭ ‬issues of concern for sustainability assessments‭.‬

Climate Change Risks and Opportunities were reviewed‭.‬

In 2022‭, ‬WT reviewed the ranking of risks and opportunities identified in 2021‭. ‬For implementation benefits‭, ‬those involving short-time impacts‭ (‬1-3‭ ‬years‭) ‬were re-assessed for current implementation status‭, ‬impact scale‭, ‬financial impact‭, ‬with which three‭ ‬key risks and two major opportunities were identified as requiring continuous attention‭.‬

Guidelines in three aspects for the net zero goals.

In response to international trends and Taiwan’s 2050‭ ‬net-zero goal‭, ‬WT set climate change indicators and goals in three aspects‭: ‬governance and strategy‭, ‬operations‭, ‬and GHG reduction‭.‬

Carbon reduction efforts were successful with the target met again in 2022‭.‬

To address the increasingly serious problem of global warming‭, ‬WT follows the national overall GHG reduction strategy towards the sustainable development goal of energy conservation and carbon reduction Since 2018‭, ‬WT has been developing‭, ‬pursuant to ISO 14064-1:2006‭ ‬Part 1‭: ‬Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals‭, ‬and the Greenhouse Gas Protocol‭, ‬a comprehensive inventory of GHG Scopes 1‭ ‬and 2‭ ‬emissions‭. ‬The inventory is verified by a third party to assure its accuracy and reliability every year‭. ‬With 2018‭ ‬as the base year‭, ‬WT promised to reduce‭ ‬the intensity of its Scopes 1‭ ‬and 2‭ ‬GHG emissions by 1%‭ ‬every year‭, ‬and keep its management policies updated according to the reduction situation‭.‬

 

In 2022‭, ‬a GHG Inventory Task Force meeting was convened in accordance with the ISO 14064-1:2018‭ ‬Greenhouse Gases to identify major indirect emission sources of the year‭. ‬The meeting resolved that the indirect GHG emissions from purchased electricity‭ (‬Category 2‭: ‬Capital Goods‭) ‬and upstream transportation and distribution‭ (‬Category 4‭) ‬were to be included within the boundaries‭, ‬and‭ ‬the base year changed to 2022‭ ‬after Hong Kong and Singapore Logistics Centers were included within the organizational boundaries‭. ‬A higher target was also set and a promise made to reduce the annual GHG emissions by 2%‭ ‬compared to the base year‭. ‬In 2022‭, ‬the voluntary inventory was extended to include operating bases in China‭, ‬Hong Kong‭, ‬South Korea‭. ‬A voluntary GHG emissions inventory covering all operating bases of the Group is planned to be completed by 2025‭, ‬with the third-party verification completed by 2027‭ ‬at the latest‭.‬

In 2022‭, ‬WT emitted 2,794.05‭ ‬tonnes‭  ‬CO₂e of GHG across areas where the inventory was completed‭ (‬including operating bases in Taiwan‭, ‬Hong Kong‭, ‬Singapore‭, ‬China and South Korea‭), ‬of which 1,810.08‭ ‬tonnes‭  ‬CO₂e‭  ‬was verified by a third party‭ (‬including Taiwan‭, ‬Hong Kong and Singapore Logistics Centers‭). ‬The intensity of Scopes 1‭ ‬and 2‭ ‬emissions was 0.0028‭ ‬tonnes‭  ‬CO₂e/NTD million‭, ‬or 0.0398‭ ‬tonnes‭  ‬CO₂e/m²‭. ‬The target was met with a 27.18%‭ ‬reduction in emissions intensity compared to the base year‭ (‬2018‭).‬

ISO14064 Greenhouse Gas Statement (2022) ｜ISO14064 Greenhouse Gas Statement (2023)

The risks of climate change brought about by global warming may cause unanticipated operational impacts. As an important enterprise in the electronic product distribution business, WT should play a leading role at both the top and bottom of the chain the top and bottom of the chain, and at the same time fully understanding the risks and opportunities that climate change may bring in the electronic industry chain. In 2021, WT initiated the introduction of a climate change risk management project in response to the Task Force on Climate-related Financial Disclosures (TCFD) proposed by the Financial Sustainability Board (FSB). The framework proposed by the Task Force on Climate-related Financial Disclosures (TCFD) is expected to strengthen corporate resilience through the establishment of a mechanism to manage climate change risks and opportunities.

 

Through awareness building, risk identification, departmental discussions and communication with senior management, WT first establishes company-wide awareness and identification related to climate change from the bottom up, building climate change awareness and knowledge throughout the whole company. The projects identified by each department will be used as the next stage of planning to promote the response plan for the reference of the governance level, and finally will be reported and communicated by the Risk Management Committee under the Board of Directors as the basis for the subsequent presentation to the Board of Directors to implement top-down climate management policy.

 

Summarize the 21 possible risk items. Promote corresponding solutions.

A total of 21 items were listed as possible risk items after consolidating the assessment results provided by various departments of the company. According to the time frame, some risks have different risk impacts in different time frames. There are 12 short-term risks, 11 medium-term risks and 8 long-term risks. After discussions and decisions made by department heads in meetings, immediate physical risks and risks of regulatory and reputational transformation were listed as WT’s three major climate change risks.

 

The results of the risk assessment will be reviewed again in 2022 and the planning of the response plan will be promoted. The Director of Sustainability will report to the Risk Management Committee, and the results will be included in the Board of Directors’ meeting to formally initiate climate change management.

Congratulations on reaching the emission reduction target by 2021!

As global warming becomes increasingly serious, WT has, since 2018, carried out a complete inventory of GHG emissions with reference to the requirements of the Organizational Greenhouse Gas Emissions (ISO 14064-1:2006) and the Greenhouse Gas Inventory Protocol (GHG Protocol), and performed GHG Scope 1 and Scope 2 inventory operations. Since 2018, we have completed annual verification procedures by third-party notary units. Starting in 2018, we have completed the verification process by a third-party notary every year to ensure the correctness and reliability of the GHG emissions inventory, so as to review the reduction situation and revise the management policy on a rolling basis.

 

In 2019, WT pledged to reduce the intensity of GHG emissions in areas 1 and 2 by 1% per year compared to 2018, using 2018 as the base year.

19.04% carbon reduction achieved in four years

In 2021, WT had already reached the expected reduction target, with total GHG emissions of 1,374.20 tonnes of carbon dioxide equivalent (tonnes CO2e), of which 0.0442 tonnes CO e/square meter (m2) for Scope 1 and 2, a 19.04% reduction in intensity compared to 2018 (base year). From 2022 onwards, the reduction target will be further increased by reducing the annual Scope 1 and 2 GHG emission intensity by 2% compared to 2018 (base year).

Energy Saving Re-Advancement Measures for 2022

• Actively seek green energy sources, e.g. the purchase of green electricity, renewable energy certificates, etc.
• Progressively review the replacement of old equipment that has deteriorated in performance.
• Carry out regular maintenance of high energy-consuming equipment.
• Priority is given to the procurement of energy-efficient equipment and green-labelled products.
• Each appliance and piece of equipment is equipped with an energy- saving controller to automatically turn on the energy-saving mode.
• The lighting fixtures and air-conditioning power supplies are controlled on a zonal basis with the installation of timer controls.
• Gradually replace all lighting fixtures and emergency exit signs with LED energy-efficient fixtures, and for venues with lower illumination requirements, turn on the lights at intervals or reduce the number of tubes if there are no safety concerns.
• Non-essential lighting turns off automatically during lunch break.
• White or light-coloured walls and ceilings are preferred to increase the light reflection effect and reduce the number of light fittings.
• The air conditioning temperature is set at 26~28°C, and the fan is set to the appropriate speed.
• The staff will be tasked with regularly checking whether the lights, air-conditioning and projection equipment are switched off when not in use.
• Infrared body sensor switches are used for low-frequency public space lighting.
• Install blackout curtains for room cooling.
• Continue to promote greenhouse gas reduction, waste separation and avoidance of standby power wastage.
• Encourage staff to make greater use of public transportation or ride-sharing for commuting to and from work, traveling to and from work and staff travel.
• Increase the greening of the office environmentt.