Climate-related Financial Disclosures (TCFD)
Etron follows the recommended framework of the Task Force on Climate-related Financial Disclosures (TCFD), categorizing the management of climate issues into four pillars: Governance, Strategy, Risk Management, and Metrics and Targets.
The Risk Management Committee coordinates relevant operations, with members responsible for identifying climate-related risks and opportunities and formulating subsequent response strategies. Implementation progress is reported regularly to the Board of Directors each year for oversight and review, ensuring the effectiveness and continuous improvement of climate management measures.
Governance
Etron reports climate governance progress to the Board of Directors annually, with the Board of Directors supervising overall implementation performance. In 2025, reports were completed in March, May, August, and November. The President serves as the Chairperson, leading organizational members to drive the identification, assessment, and management of climate risks to ensure the effective operation of the governance mechanism.
Strategy
Etron categorizes climate-related risks and opportunities into short-term (1–2 years), medium-term (2–5 years), and long-term (5+ years), and assesses their impact on organizational business, strategy, and finance, ranking risk/opportunity levels as “High”, “Medium” or “Low.”
Meanwhile, the company uses RCPs climate scenarios for analysis, selecting 1.5DS/RCP8.5 as the primary physical risk scenarios for climate change to identify risks and opportunities in physical, regulatory, and transition dimensions, and providing descriptions for related themes.
Through scenario analysis, Etron gains a more comprehensive understanding of the potential impacts of climate change on its business, serving as an important reference for future response planning and the strengthening of risk management strategies.
Risk Management
To address the potential operational, financial, and strategic impacts of climate change, a systematic identification, assessment, and management process for risks and opportunities has been established. The detailed steps are as follows:
Metrics and Targets
Greenhouse gas reduction targets, strategies, and specific action plans:
2030: Achieve 25% reduction | 2040: Achieve 40% reduction | 2050: Achieve Net zero emissions
| 1. Green Procurement: Full replacement of air conditioning with Level 1 energy efficiency | 2025~2030 |
| 2. Energy Saving Projects: Implementation of facility energy optimization | 2025~2030 |
| 3. Renewable Energy: Solar power installation for self-consumption | 2025~2030 |
| 4. Carbon Credit Planning: Monitoring and acquisition in carbon trading markets | 2030~2040 |
Climate Risks and Opportunities
Etron categorizes climate-related risks and opportunities into short-term (1–2 years), medium-term (2–5 years), and long-term (5+ years). We assess their impacts on organizational operations, business, strategy, and financial performance, while classifying the levels of risks and opportunities as “High”, “Medium” or “Low.” Among all identified items, the significant risks rated as “High” include:
Physical Risk: Increased severity of extreme weather events such as typhoons and floods.
Transition Risk: Enhanced emissions-reporting obligations.
Transition Risk: Rising raw material costs.
| No. | Risk Item | Level |
|---|---|---|
| R1 | Increased pricing of GHG emissions | Medium |
| R2 | Enhanced emissions-reporting obligations | High |
| R3 | Mandates on and regulation of existing products | Medium |
| R4 | Substitution of existing products with lower carbon options | Medium |
| R5 | Costs to transition to lower emissions technology | Medium |
| R6 | Changes in customer behavior | Medium |
| R7 | Changes in precipitation patterns and extreme variability | Medium |
| R8 | Increased severity of extreme weather events | High |
| R9 | Rising raw material costs | High |
| R10 | Rise in mean temperatures | Medium |
| R11 | Sea level rise | Medium |
| No. | Opportunity Item | Level |
|---|---|---|
| O1 | Reduction in water usage and consumption | Medium |
| O2 | More efficient production and distribution processes | Medium |
| O3 | Recycling and reuse | Medium |
| O4 | Move to more efficient buildings | Medium |
| O5 | Use of more efficient modes of transport | Medium |
| O6 | Use of lower-emission sources of energy | Medium |
| O7 | Development of new low carbon products and services | Medium |
| O8 | Use of new technologies | Medium |
| O9 | Participation in carbon markets | Medium |
| O10 | Shift toward decentralized energy generation | Low |
Impact Analysis and Response Actions
For the three high-level risks mentioned above, the Company has conducted an impact analysis on organizational business, strategy, and financial performance, and proposed corresponding adaptation and response actions to mitigate potential impacts and enhance resilience.
| Type | Risk Item | Potential Impact Analysis | Response Strategy | Mitigation and Adaptation Actions |
|---|---|---|---|---|
| Physical Risk | Increased severity of extreme weather events | Natural disasters may affect operations. Considering the current environment, the financial impact is low; natural disaster insurance premiums are paid annually. | Assess potential risks based on historical typhoon data to minimize hazards. | 1. Secure valuables to the floor. 2. Annual inspection of ceiling fixture stability. 3. Purchase natural disaster insurance to diversify losses. 4. Procure extra water-absorbent sandbags and flood barriers. 5. Monthly maintenance of pumping and drainage facilities. 6. Establish a record of climate events. |
| Transition Risk | Enhanced emissions-reporting obligations | Transparent disclosure of environmental information. Financial impact is low; the financial expenditure for audit disclosure in 2025 reached NT$ 300,000. | Establish and execute management policies for GHG, water, waste, and energy. | 1. Monthly recording of water, waste, and energy consumption. 2. Annual carbon inventory and disclosure on official website, Sustainability Report, and CDP. |
| Transition Risk | Rising raw material costs | Climate change causes raw material shortages and various countries are imposing carbon taxes, resulting in a medium financial impact on the company. | 1. Implement supplier evaluations. 2. Prioritize low-carbon suppliers. | 1. Continuously monitor carbon tax requirements worldwide. 2. Seek competitive low-carbon suppliers through ESG evaluations. |