WT's strategy and management in response 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 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.
Climate Change Risks
Risk |
Financial Impacts |
Response Strategies and Solutions |
|---|---|---|
|
Increased severity and frequency of extreme weather events (typhoons, heavy rains, etc.) |
· Reduced asset value
· Reduced useful life of assets Note: A financial impact of up to NTD 26 million could be possible, based on the assumptions and calculation factors set internally by WT. |
Short-term: Follow meteorological information in real time, plan corresponding prevention and response measures against different natural disasters, and maintain full communication with the park's management center; |
|
Extremely high temperature |
· Increased operating expenses
Note: A financial impact of more than NTD 1.08 million per year could be possible, based on the assumptions and calculation factors set internally by WT. |
Short-term: Give priority to products with energy-saving labels and install energy-saving facilities whenever possible, including office air conditioning, electrical appliances, office machines, and regularly review the energy-saving performance of each unit, continue to promote energy-saving awareness through various activities, translate knowledge into employees' practic in order to reduce energy dependence; |
|
Supply chain transportation affected by extreme weather events |
· Increased capital cost
Note: A financial impact of more than NTD 220,000 per day could be possible, based on the assumptions and calculation factors set internally by WT. |
Strengthen communication with customers, including information exchange on climate change-related impacts, to mitigate the impact of supply chain transportation. |
Note: Short-term 1-3 years, mid-term 3-5 years, long-term 5 years and more
Climate Change Opportunities
Risk |
Financial Impacts |
Response Strategies and Solutions |
|---|---|---|
|
Reduced capital cost |
· Reduced operating costs
|
Continue to pay attention to the sustainability indicators related to the organization and the performance of the organization-related sustainability indicators; actively communicate with financial institutions on green financing conditions. |
|
New/expanded low-carbon products or services |
· Increased product demand and revenue
|
Short-term: Plan product applications, analyze classifications, and define low-carbon products; |
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).
Total emission amount |
Total |
Taiwan |
Hong Kong |
China |
Southeast Asia& India |
Korea |
|---|---|---|---|---|---|---|
|
Category I |
218.82
|
75.14
|
18.30
|
98.12
|
10.27
|
16.99
|
|
Category II |
2,362.90
|
1,225.37
|
192.11
|
712.79
|
121.47
|
111.16
|
|
Category III |
212.33
|
212.33
|
- |
- |
- |
- |
|
Category IV |
-
|
- |
-
|
- |
- |
- |
|
Category V |
- |
- |
- |
- |
- |
- |
|
Category VI |
- |
- |
- |
- |
- |
- |
|
Over all |
2,794.05
|
1,512.84
|
210.41
|
810.91
|
131.74
|
128.15
|
