Response to climate change

Posted on 2025 年 9 月 5 日2025 年 10 月 28 日 by web.it

Climate change is an issue that needs the world to face together, no matter who. As an electronics component distributor, 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.

Climate change governance and architecture

Board of Directors	The highest decision-making unit for climate change risk management is responsible for approving relevant risk management measures, tracking the implementation of climate-related risk management, guiding decision-making response plans, and supervising the implementation results and goal achievement of the plans.
Sustainable Development Committee	A functional committee established by directors and independent directors regularly reports to the Board of Directors the results of climate change risk and opportunity assessments and guides the implementation of climate risk and opportunity management.
Risk Management Team	It is composed of the Accounting Officer and other senior executives of the sustainability management team to coordinate and plan risk management processes such as identification of risks and opportunities, and planning of response plans. Regularly confirm implementation results and integrate climate change risk management reports.
Functional/Business units	Regularly conduct assessment and analysis of climate change risks and opportunities, plan and implement response plans, and regularly report implementation results and performance.

Risk management team held four meetings in 2024, inviting each functional/business unit to identify risks and opportunities, assess financial impacts, and discuss response plans. The evaluation and planning results will be incorporated into the operation promotion plan of relevant units and reported to the Board of Directors periodically as reference for governance

Climate change risk and opportunity management process

Climate-related risk assessment has been integrated into the existing risk management mechanism and regularly conducted by the Risk Management Team. 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.

Climate change risk assessment process
01 Risk item inventory	• Identify possible risks and opportunity projects with reference to TCFD recommendations, relevant domestic and foreign regulations, and expectations of external stakeholders.
02 Key risk analysis	• Analyze and identify key risks based on the risk occurrence time interval, risk occurrence possibility, risk possible location, and degree of risk impact. • Sort the analysis results in a quantitative manner and select the top three risk and opportunity items as key risks.
03 Financial impact assessment of risks and opportunities	• Consider the possibility of risks/opportunities occurring and the extent to which they affect operations, and evaluate the possible financial impact items and extent.
04 Response planning and reporting	• For key risks and opportunities, the degree of financial impact is considered, response strategies are evaluated (mitigation, control, transfer, and tolerance), and response plans are planned. • Reporting is performed in accordance with internal management procedures. Implementation results are regularly disclosed in the sustainability report.

Scenario analysis

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. These are also reported on an annual basis to the Sustainable Development Committee and the Board.

Therefore, WT conducts the annual climate change risk assessment based on the SSP5-8.5 scenario from IPCC AR6 Shared Socioeconomic Pathway (SSP) 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.

Climate change risks and opportunities

The acquisition of Future Electronics in 2024 has globally expanded our operational scope. 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 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.

Three major climate change risk factors

Risk Factors	Impact Scope	Financial Impacts	Response Strategies and Solutions
Increased severity and frequency of extreme weather events (typhoons, storms, etc.)	Directly on the operations	∙ Decreased asset value ∙ Reduced asset service life Note: Based on WT’s internal assumptions and calculation factors, the maximum financial impact may be NT$50 million approximately.	∙ Short-term: Understand meteorological information in real time, plan prevention and response measures accordingly for different natural disasters, and continue to maintain full communication with the park management center. ∙ Mid-term: It mainly focuses on transferring and diversifying risks, and purchasing relevant property insurance. The location of important configurations is continuously evaluated and needs to be located in an area less affected by the climate. ∙ Long-term: When choosing to add/relocate an operating location, the assessment items include climate change factors (such as flood prevention, earthquake prevention, etc.).
Extreme climate and high temperatures	Directly on the operations	∙ Increased operating costs Note: Based on WT’s internal assumptions and calculation factors, it may cause a financial impact of NT$14.5 million approximately per year in the future.	∙ Short-term: When purchasing, priority is given to products with energy-saving labels, including office environments, electrical equipment, office machines, etc. Energy-saving facilities are installed, and the energy-saving results of each unit are regularly reviewed. Continue to promote energy conservation and various activities, and integrate the concepts into the habits of all colleagues, with the aim of reducing energy dependence. ∙ Mid-term: Continuously review whether the replacement plan is in line with the latest trends to ensure that the energy efficiency of the relevant equipment used meets expectations. ∙ Long-term: Establish a stable energy supply strategy, including seeking alternative energy and developing renewable energy.
Extreme weather events impacting supply chain logistics	Directly on the operations, vendors, customers	∙ Increased cost of capital Note: Based on WT’s internal assumptions and calculation factors, it may cause a financial impact of NT$500,000 approximately per day.	Strengthen communication with customers, including exchanging information on the impacts of climate change, to reduce the impact of the effect on supply chain logistics.

Note: Short-term 1 to 3 years, medium-term 3 to 5 years, and long-term over 5 years

Two major climate change opportunities factors

Opportunity Factors	Financial Impacts	Response Strategies and Solutions
Reduced capital acquisition cost	∙ Reduced operating costs	Continue to pay attention to the sustainability indicators related to the organization and the performance of the sustainability indicators related to the organization. Actively communicate green financing conditions with financial institutions. By the end of 2024, the Company has reached 5 green financing interest rate agreements.
Develop/expand low-carbon products or services	∙ Increased demand for products leads to increased revenue	∙ Short-term: Plan product application and category analysis work, and define low-carbon products. ∙ Mid-term: Continue to track the technology application capabilities of the vendor and improve the support capabilities for the vendor’s low-carbon products. ∙ Long-term: Actively market low-carbon products to customers and increase the sales proportion of low-carbon products.

Major indicators and goals for climate change

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.

Aspect	Indicator	Short-term	Mid-term	Long-term
Governance and strategy	Linking Executive Compensation to ESG Performance	The remuneration of directors and managers is determined and reviewed in accordance with the Procedures for Remuneration of Directors and Functional Committee Members and the Procedures for Remuneration for Managers as necessary to strike a balance between sustainable management and risk control. In 2024, we established an Executive Compensation and Clawback Policy, incorporating environmental and social performance metrics, each accounting for 10% of the evaluation criteria.
	Internal carbon pricing	Implementation plans are made to evaluate and roll out internal carbon prices.
	Implementation of climate change risk management	Risks and opportunities are assessed, analyzed and reported every year.
Operation	Asset insurance rate	20%	40%	100%
	Proportion of energy-saving lights and green-labeled energy-saving electrical appliances	50%	Lights in Taipei HQ are 100% LED. Electrical appliances are 80% green energy-saving.	Electrical appliances are 100% green energy-saving.
	Customer demand forecast	∙ Order volume for the next three months are updated monthly. ∙ Delivery schedules are updated monthly. ∙ Contracts are amended to incorporate climate exclusion clause.
	Reduced capital cost	∙ ESG credit line proportion is increased year by year, achieving 10% in stage one. ∙ Mid-term financing is linked to ESG indicators.	Financial institutions are engaged to formulate ESG indicators suitable for the distribution sector, and further expand the ESG credit line. Relevant ESG indicators are included in WT’s sustainable target management.
	Proportion of revenue involved in sustainable economic activities	∙ All suppliers provide statement of compliance with the latest regulations on the restriction of hazardous substances. ∙ Green energy, energy storage, and low-carbon transportation related applications are studied and designed.	∙ Suppliers are continuously required to comply with the latest environmental laws and regulations. ∙ System solutions are offered for green energy, energy storage, and low-carbon transportation related applications.	Revenue portion involved in sustainable economic activities is 20% or more.
GHG emissions	GHG inventory	Inventory of all operating sites are developed by 2025.	Inventory of all operating sites are verified by 2027.
GHG emissions	Total emissions	Down by 3%-5% every year compared with previous year	Scope 1 and 2 emissions down by 50% relative to 2022 by 2035	Net zero carbon emission by 2050

Proactively managing climate change to turn crises into opportunities

Posted on 2024 年 8 月 15 日2025 年 11 月 14 日 by vicky_yeh@bwnet.com.tw

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.

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.

WT's strategy and management in response climate change

Posted on 2023 年 8 月 18 日2025 年 11 月 14 日 by janis_wu@bwnet.com.tw

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)

Promote TCFD project to initiate climate change management

Posted on 2022 年 8 月 30 日2024 年 8 月 15 日 by janis_wu@bwnet.com.tw

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.