Climate change is a challenge that all actors around the world must face together. As an electronic components distributor, WT has operations, working partners, and principal suppliers located across the globe, all of which may be impacted by climate change. WT’s governance level understands the potential impact of climate change on operations and long-term development. Since 2021, the Company has promoted relevant management mechanisms and operations, formulated policies and targets, and invested resources in assessing and researching transition plans. Going forward, we will continue to track progress toward these targets and adopt more proactive action plans.
 
 
 
Climate change governance and structure



Board of Directors
Sustainable Development Committee
Risk Management Team
Functional/Business Units




• The highest decision-making body for climate change risk management at WT. Responsible for approving relevant risk management policies, tracking the implementation of climate related risk management, guiding decision-making on response measures, and overseeing the execution results and target achievement.
• A functional committee composed of directors and independent directors. Regularly reports to the Board of Directors on the results of climate change risk and opportunity assessments and management implementation status.
• Composed of the Chief Financial Officer and other senior executives from the sustainability management team. Responsible for coordinating risk management processes such as risk and opportunity identification and response planning; regularly confirms implementation results and integrates climate change risk management reports. 
• Regularly conduct climate change risk and opportunity assessments and analyses, plan and implement response measures, and regularly report implementation results and performance. 



The Risk Management Team held five meetings in 2025, inviting functional/business units to identify IFRS S2 sustainability risks and opportunities, assess financial impacts, and discuss response measures. The assessment and planning results will be incorporated into the operational plans of relevant units and regularly reported to the Sustainable Development Committee and the Board of Directors as a governance reference.
 
 
Climate change risk and opportunity management process
Climate-related risk assessment activities have been integrated into the existing risk management mechanism and are regularly promoted 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 regularly produce internal and external reports.

Climate change risk and management process


01 Risk Item Inventory
• Reference IFRS S2 Sustainability Disclosure Standards, relevant domestic and international regulations, and external stakeholder expectations to identify potential risk and opportunity items.


02 Key Risk Analysis
• Conduct key risk analysis and identification based on the time horizon of risk occurrence, likelihood of occurrence, potential location within the value chain, and degree of financial impact.

• Rank the analysis results quantitatively, and select the top two risks and the top one opportunity to be designated as key risks and opportunities.


03 Financial Impact Assessment of Risks and Opportunities
• Assess the potential financial impacts and their magnitude by considering the likelihood of risks/ opportunities occurring and the degree to which they affect operations.


04 Response Planning and Reporting
• For key risks and opportunities, evaluate response strategies (mitigation, control, transfer, and acceptance) and formulate action plans based on the degree of financial impact.

• Report according to internal management processes, and regularly disclose implementation outcomes in the Sustainability Report.



Scenario analysis
WT is not in an industry with high carbon emission intensity or large total carbon emissions. The impact of climate change is mainly reflected in the Company’s value chain, including the transition pressures that vendors and customers may face, as well as potential physical risks during transportation. To understand the impact of these transition risks and physical risks on WT’s operations, the Company uses scenario analysis to identify risks and opportunities. The assessment results are used by relevant units for response planning and as a reference for daily operational adjustments, while also being regularly reported annually to the Sustainable Development Committee and the Board of Directors.
 
In accordance with the requirements of IFRS S2 Sustainability Disclosure Standards, WT has selected the latest climate model scenario that aligns with international agreements – the NGFS (Network for Greening the Financial System) Current Policies scenario – as its assumed scenario. In addition, information such as regulatory changes, the external physical environment, and sustainability rating concerns is referenced as the basis for the annual climate change risk assessment.
 
Climate change risks and opportunities
In 2025, in accordance with the IFRS Sustainability Disclosure Standards, the financial impact period is defined as short-term (within 1 year), medium-term (2–5 years), and long-term (more than 5 years). The likelihood of impact and financial thresholds are also defined. Based on the material risk and opportunity matrix, risks and opportunities are identified. The primary physical risk is rising average temperatures, the primary transition risk is enhanced emissions reporting obligations, and the primary opportunity is the development and/or increase of low-carbon goods and services. These are identified as key risks and opportunities requiring continuous monitoring.
Climate change risks



Risk Factor
Type
Financial Impact
Response Strategies and Measures




Rising average temperatures
Physical risk: As global average temperatures rise, electricity demand for air conditioning in WT’s offices and for warehousing and logistics increases, driving up electricity costs. In addition, excessive electricity demand may cause power trips or outages, potentially disrupting daily operations.
∙ Higher temperatures extend daily air-conditioning operating hours, increasing electricity costs

∙ Power trips or outages caused by high temperatures may disrupt daily operations, reducing revenue 

∙ Increased equipment procurement expenses for measures to address this risk 

∙ Short-term: Short-term: Set air-conditioning temperatures at 26–28°C with fans for heat dissipation; optimize energy management through zoned power control; convert air-conditioning to chilled-water systems; prioritize procurement of energy-efficient equipment; introduce warehouse automation to reduce overall energy use; install solar power generation systems; and adopt an internal carbon pricing mechanism that incorporates carbon costs into procurement decisions, prioritizing low-carbon equipment and materials to reduce the operational carbon footprint at the source. 

∙ Mid- to long-term: Maintain air-conditioning equipment with periodic inspections; promote chilled-water systems across logistics centers with regular checks of equipment and pipelines; evaluate green building adoption for newly established operating sites; introduce automated warehousing systems and increase the proportion of unmanned operations to reduce lighting and  electricity demand. In addition, continue to install renewable energy generation systems, procure appliances and office equipment with energy-efficiency labels, and expand the use of renewable energy to raise the sustainable procurement ratio.



Enhanced emissions reporting obligations 
Transition risk: Strengthened emissions reporting obligations represent a potential policy and legal risk. If WT discloses detailed emissions data in the future, including expanded carbon data collection for additional Scope 3 categories, extra data-collection efforts will be required and related compliance costs may arise. 
∙ Increased staff time and management costs 

∙ Increased education and training expenses 

∙ Increased verification expenses 

∙ Short-term: Provide carbon inventory training; conduct Scope 1 and Scope 2 GHG inventories across the Group’s operating sites and obtain third-party verification; and hold general affairs supplier conferences that include carbon inventory training. 

∙ Mid- to long-term: Continue GHG inventories and third-party verification across operating sites; progressively add selected Scope 3 categories to the inventories of consolidated subsidiaries; and hold annual supplier conferences to encourage suppliers to provide carbon inventory data for purchased capital goods, assist suppliers with their own inventories, and achieve joint emission reductions through feasible approaches.




Note: Short-term: within 1 year; Mid-term: 2–5 years; Long-term: more than 5 years 

Climate change opportunities



Opportunity Factor 
Financial Impact 
Response Strategies and Measures 




Development and/or increase of low-carbon goods and services 
∙ Customer demand for more energy-efficient and lower-emission products continues to grow. Expanding the low-carbon product line (including low-power, high-performance system products), or introducing related products in response to low-carbon trends (such as components in green-energy/energy-storage products), increases orders and drives revenue growth. 
∙ Short-term: Continue collaborating with suppliers and investing manpower in development, proposing a total of 20 green-design solutions covering new energy vehicles, AI servers, and wide-bandgap-semiconductor digital power, among others; introduce new product lines; expand into new application markets; and prioritize recommending green-design products or suppliers that have issued green product declarations. 

∙ Mid-term: Collaborate and analyze with suppliers to propose optimal solutions for high-energy-consumption, low-efficiency, and emerging industries; continue investing in R&D manpower and equipment; conduct industry-academia collaboration to cultivate talent; expand into system-level and ecosystem-level solutions; and develop modular product portfolios that strengthen reuse and recyclable design.

∙ Long-term: Actively market low-carbon products to customers and increase the sales proportion of low-carbon products.



Note: Short-term: within 1 year; Medium-term: 2–5 years; Long-term: more than 5 years
 
 

Targets and goals
In response to international trends and the national 2050 net-zero target, WT’s climate change-related targets and goals are divided into three major aspects: Governance and Strategy, Operations, and Greenhouse Gas Reduction. 



Dimension
Metric
Short-term Target 
Mid-term Target 
Long-term Target






Governance & Strategy 
ESG performance linked to governance-level remuneration 
In accordance with the relevant remuneration regulations, directors’ and managers’ remuneration is set and reviewed as needed to balance sustainable operation and risk control. In 2024, a managerial incentive and clawback policy was established, incorporating environmental and social performance at 10% each as evaluation weightings. 


Internal carbon price
The Group has adopted a shadow pricing approach, setting its internal carbon price at US$72 per tonne of CO₂e (US$72/tCO₂e). 


Implementation of climate change risk management 
Conduct risk and opportunity assessments annually, with analysis and reporting carried out each year. 


Operations 
Asset insurance coverage
Inventory that is mainly exposed to climate change risks is 100% fully insured. 


Reducing the cost of capital
Progressively increase the proportion of ESG loan facilities; reach 15%. 
Progressively increase the proportion of ESG loan facilities; reach 20%. 
Progressively increase the proportion of ESG loan facilities; reach 25%. 


Revenue share from sustainable economic activities
Revenue from sustainable economic activities to account for ≥58%. 
Revenue from sustainable economic activities to account for ≥62%. 
Revenue from sustainable economic activities to account for ≥65%.



GHG
emissions

Scope 1 and 2 GHG inventory 
∙ Complete GHG inventories and verification for all operating sites 

∙Continue purchasing green power and increase its share year by year. 
∙ Increase the Group’s renewable energy usage ratio to 10% by 2030. 
∙ Increase the Group’s renewable energy usage ratio to 60% by 2050. 


Scope 3 GHG inventory 
Expand the inventory scope of “waste generated in operations” across the Group’s Asia region. 
Expand the inventory scope of “waste generated in operations” across the Group’s Americas and EMEA regions. 
Assist suppliers with GHG inventories and adopt feasible approaches to reduce carbon emissions. 


Total emissions 
Using 2025 as the base year, reduce Scope 1 and Scope 2 emissions by 4–6% annually starting from 2026 
Reduce Scope 1 and Scope 2 emissions by 20% relative to 2025 by 2030 
Reduce Scope 1 and Scope 2 emissions by 40% relative to 2025 by 2035, achieve a 50% reduction by 2038, and reach net-zero emissions by 2050 



Note: Short-term: within 1 year; Medium-term: 2–5 years; Long-term: more than 5 years