AcBel Polytech Inc. 康舒科技

Energy Consumption & GHG Emissions

Energy, Natural Rescources and GHG Emissions Management

In order to accelerate our own carbon reduction effect and meet the international and customer requirements and expectations for net-zero emissions, AcBel has not only formulated "Energy and Natural Resources Policy" and "Greenhouse Gas Inventory Declaration" as the company's highest guideline for GHG and energy management, but set short, medium and long-term energy management goals and plans to join the Science-Based Carbon Reduction Target Initiative (SBTi) in 2021 with a target commitment of no more than 1.5°C. The Group has set GHG reduction targets in various areas and requested the "Corporate Sustainable Development Committee" of each production base to plan and implement carbon reduction projects in line with the carbon reduction targets.

In order to ensure the achievement of energy resources management and GHG emissions reduction targets, AcBel promotes ISO 14064 greenhouse gas inventory and ISO 50001 energy management system to obtain actual data on greenhouse gas emissions and energy usage in our plants, confirming the implementation of the project and continuously review and propose improvement measures as the basis for the next year's target setting and management actions to achieve the company's carbon reduction goals.

AcBel implements GHG inventory, analyzes emissions hot spots, and sets up energy-saving and carbon-reduction projects at each production base to ensure compliance with the carbon reduction pathway through tracking and revision.
In response to international initiatives and act in concert with the requirements of the national carbon reduction policy, the company has set target achievement rate to review the effectiveness of energy and water saving projects. The international initiatives include: Task Force on Climate-related Financial Disclosures (TCFD), Carbon Disclosure Project (CDP) Climate Change and Water Security Questionnaires, Science-Based Carbon Reduction Target Initiative (SBTi), and Taiwan’s 2050 Net-Zero Emissions Pathway.
AcBel has introduced ISO 14064(the latest inventory date is June 15, 2022), ISO 14001(certificate is valid until January 18, 2025), ISO 50001(certificate is valid until January 27, 2025) and ISO 14046(the latest inventory date is May 29, 2022) to our energy management system in the hope of identifying best methods of energy saving and improvement. With the introduced standards, the company can effectively manage its annual energy and resources consumption as well as GHG emissions and achieve various reduction goals, which reduce the company's environmental impact of operation. For detailed ISO system list and certificate download, please refer to Sustainability Management System and Certificate.

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Climate Related Financial Disclosure (TCFD) and Governance

In 2019, we disclosed climate change impact information according to the framework of "Climate-related Financial Disclosure Recommendations", and helped the company improve climate risk and opportunity management through mechanisms such as identification of climate-related risks and opportunities, and carbon reduction target setting, and continued to respond to governments, customers, investors and the public's concerns and expectations for AcBel's climate governance. In 2020, we have achieved the "Green Energy Sustainability 2020" milestone and continued to set the "Energy Sustainability 2030" goal for the next challenge. In 2022, we began to set a science-based target and launch a blueprint for our carbon management strategy. We will plan and implement management strategies such as internal carbon pricing (ICP) and performance-based reward mechanisms; the independent directors of the Board of Directors will be responsible for the performance of the company's climate governance and will be included in the Board of Directors' Sustainable Development Committee for monitoring, decision-making and management.

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"Sustainable Energy 2030" Goal

In 2014, AcBel set the "Sustainable Green Energy 2020" goal for the period of 2015 to 2020, with the goal of reducing GHG emissions, domestic water consumption, and the reduction of hazardous waste generation by 2% each year compared to the previous year. The implementation period will start from 2021 to 2030. After achieving the sustainability goal in 2020, we will evaluate and set the "Energy Sustainability 2030" goal for the period 2021 to 2030 in order to continue to facilitate our mission of environmental sustainability. The Social Responsibility Management Committee (now called the Corporate Sustainable Development Committee) is responsible for monitoring and managing each production site, reviews and diagnoses the hot spots of plant emissions based on the current situation of the plant; the committee formulates various reduction strategies and action plans focusing on GHG emissions, water usage, and waste generation. Through quarterly tracking and PDCA cycle revision, CSC aims to achieve a 2% of reduction in emissions each year, with a base year of 2014 to an estimated 35% of reduction by 2030, reaching our goals of energy saving and carbon reduction, water consumption reduction and waste reduction.

GHG emissions reduction target as part of the "Energy Sustainability 2030," AcBel has aligned with the commitment to the Science-Based Carbon Reduction Target (SBT), and the GHG reduction target will be revised simultaneously to conform with the SBT commitment after being verified in 2022: 42.0% of reduction in absolute emissions (tons) in Scope 1 and 2 in 2030 compared to the base year of 2020. In order to demonstrate the determination of energy management and GHG reduction, we also takes the initiative to actively seek solutions at each production base, such as: energy saving measures, solar power plant construction, the purchasing of green electricity and other assessments so as to accelerate the achievement of carbon reduction targets.

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Energy Consumption

Energy Consumption Analysis in 2021

In 2021, AcBel's overall energy consumption was the highest with 97.33% of purchased electricity, followed by 1.21% of natural gas, 0.88% of gasoline, 0.58% of diesel, and 0.004% of liquefied petroleum gas, which is the lowest with only use at the Wuhan plant. If we look into the energy intensity of the plant (GJ/production (thousand units), the Tamsui plant is the highest. Although the plant ranks third in terms of total consumption, it has the highest energy intensity. The main reason is that the Tamsui plant produces high-power and high-wattage products and the number of production units is not higher than that of other factories that mainly produce consumer power supply, resulting in the higher energy intensity. The company's main carbon reduction strategy is to improve the energy efficiency of its equipment and optimize the efficiency of electricity usage to achieve the company's SBT carbon reduction goal in a comprehensive approach by combining solar energy construction and green power procurement strategies.

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GHG Emissions Status

AcBel has introduced ISO 14064 GHG inventory certification since 2009 having adopted the latest ISO 14064 standard and incorporated it into the inventory of the Scope 3 emissions and our subsidiary Shanghai Sino Hardware Electronics ― Wujiang Plant and Tongliang Plant, so as to systematize the management of GHG emissions from the group's perspective and serve as an important tool for the company's medium and long-term operational carbon emissions reduction strategy and performance tracking to accelerate the goal of net-zero emissions combined with CDP questionnaire disclosure carbon management mechanism and SBT carbon reduction target commitment.

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GHG Emissions

AcBel's GHG emissions for each production base in 2021 was 2,207.52 metric tons of CO2e in Scope 1, 50,543.01 metric tons of CO2e in Scope 2 and 2,633,060.75 metric tons of CO2e in Scope 3, for a total of 2,685,811.28 metric tons of CO2e, accounting for a percentage of Scope 1, 0.08%, 1.88% in Scope 2 and 98.04% in Scope 3, respectively.

Scope 1 & Scope 2

In 2021, overall emissions in Scope 1 and Scope 2 increased by 9.95% compared to the previous year, and the emissions intensity also increased by 15.25% compared to the previous year. The main reasons for this increase were the adjustment of product mix and process changes, including the development of high performance products which consumed more electricity for burn-in test, and the introduction of new equipment and processes in the automated process also resulted in an increase in electricity consumption.

AcBel will continue to improve the efficiency of public and process equipment through the ISO 50001 energy management system and optimize energy efficiency through the installation of smart energy monitoring equipment. In addition, we have initiated the evaluation of solar power construction for self-usage power and the procurement of green power at each production base in order to enhance the achievement of carbon reduction goals. Moreover, we expect the new plant in Tamsui to complete the construction of solar power generation and energy storage equipment by 2022, and the renewable power produced will be self-generated and self-consumption to contribute carbon reduction.

Scope 3

In 2021, we completed the inventory of 9 categories of emissions; analyses demonstrated that 57.51% of the emissions were generated from the Use of Sold Products and 41.75% from the Purchased Goods and Services, making a total of 99.26% as the main source of emissions in Scope 3.

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Waste and Air Emissions Management

AcBel has set up a dedicated management unit for waste, air emissions, and waste water treatment and monitoring at each operating base. With "Energy Sustainability 2030" as the goal, we have developed schemes for waste and air emissions management, including: general waste, industrial waste, and air emissions monitoring from production.

The majority of waste generated during the production process includes waste hardware, waste plastics, waste wires/cables, waste PCBs, and waste machine cases, etc., we are able to increase the conversion rate of waste by way of proper sorting and recycling. The air emissions are the gas volatilized through the use of chemicals in minor processes and the tin fume generated by the welding process. We lower the impact of air emissions on the working environment through the use of protective equipment and centralized exhaust methods to increase the height of the terminal exhaust outlet and enhance the adsorption capacity of activated carbon; furthermore, we implement air emissions testing regularly to conform with the legal emissions standards.

AcBel has established "Environmental, Health and Safety Declaration" and "EHS Policy" as the highest guideline for waste treatment, and has formulated "Waste Management Procedure" to set up standardized treatment processes. We also have implemented "ISO 14001 Environmental Management System" at all operating bases, and Dongguan Plant acquired "UL 2799 Zero Waste to Landfill" certification, to achieved effective waste management and reduction targets. Furthermore, we will continue to promote various waste reduction programs at all operating bases, introduce UL2799 management certification, facilitate waste data analysis and track waste reduction effectiveness for comparison.

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Water Resources Management

In order to understand the impact of water resources on its operations, AcBel adopts Task Force on Climate-related Financial Disclosures (TCFD) to assess water resources risks and analyze the results for preparation in advance.

As AcBel's products are mainly assembled with electronic components, only a small amount of water is used in the process of the cleaning of the soldering ovens; and no significant amount of water is consumed for the entire manufacturing process. Therefore, our water management measures are based on the two major concepts of "Zero Pollution of Wastewater Discharge" and "Water Conservation for Equipment and Living."

In terms of "Zero Pollution of Wastewater Discharge," the plant is equipped with rainwater and wastewater sanitary sewer pipes in accordance with the laws, and the plant implements water quality monitoring of domestic wastewater discharge to ensure that the wastewater discharge complies with local laws and regulations in order to reduce the burden on the environment and water resources caused by the company's operations. Under the "Energy Sustainability 2030" water conservation target, we have formulated various water conservation projects according to the current situation and production plans at each plant for the sake of reducing overall water consumption and avoiding unnecessary waste of water resources.

With a view to cherishing water resources and lowering unnecessary wastage, AcBel has adopted a number of strategies to improve the efficiency of using water resources, including new equipment replacement, water consumption data monitoring, enhancing water equipment inspection, leak detection and personnel education.

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