The Company obtained SBTi certification for its carbon reduction targets in 2022, and in 2023 committed to achieving RE100 by 2030 and net zero by 2050. Integrating these three commitments and referencing the SBTi methodology, we have planned a mid-term carbon reduction pathway under the 1.5°C GHG reduction scenario, selecting 2020 as the base year.

Chicony Net Zero Pathway

Unit: tCO2e

Notes:

1. The difference compared to the base year is indicated in parentheses.
2. Scope of Data: HQ, Major Production Bases. Excluding subsidiaries Chicony Power and XAVI, and integrating the Company's SBTi, RE100, and net zero targets.

The Company conducts an annual inventory of GHG emissions at each site in accordance with the ISO 14064-1 standard and the GHG Protocol methodology. This process is verified by a third-party independent verification unit.

In 2024, office locations were included in the inventory for the first time, covering the Chicony Electronics CEZ s.r.o., Yangmei warehouse, Taichung office, Kaohsiung office, Chicony America Group Inc., and Chicony Electronics Japan, Inc. The data scope now fully aligns with the 100% consolidation scope of CEC's financial reporting. A groupwide verification approach was adopted to standardize inventory methodologies and verification procedures across all sites.

The Company's Scope 1 GHG emissions primarily arise from the combustion of natural gas in factory boilers, as well as from the fugitive emissions associated with the use of company vehicles and refrigerants. Scope 2 emission are derived from purchased electricity. Considering the operational characteristics of each plant and the demands of the industry, there are a total of 10 items for Scope 3 inventory and verification, mainly related to the procurement of products and services, as well as the use of sold products. There are no biogenic emissions within the scope of the inventory.

In 2024, the total GHG emissions for Chicony Electronics (Scope 1, 2, and 3) amounted to 1,318,969.404 tCO2e, representing an increase from 624,683.596 tCO2e in 2023.

Direct and energy indirect (Scope 1 and 2) GHG emissions totaled 43,150.908 tCO2e, representing a 21% reduction (15,137.247 tCO2e) compared to 58,888.247 tCO2e in 2023. The decrease was primarily attributed to the Company’s commitment to the RE100 initiative and active efforts toward the 2030 RE100 target. In 2024, the Company used a total of 59,301 MWh of renewable electricity, an increase of 13,692 MWh from 2023, resulting in approximately 7,119.84 tCO2e of emission reductions. In parallel, continued implementation of energy-saving, carbon-reduction initiatives and fossil fuel replacement projects further improved energy efficiency in the production process.

In 2024, Scope 3 GHG emissions significantly rose to 1,317,341.412 tCO2e from 2023. This increase was primarily driven by a surge in the "Purchased Goods and Services" category, which grew from 283,407 tCO2e in 2023 to 1,005,690 tCO2e. This stemmed from expanding operations and adjusting procurement strategies due to supply chain relocation, leading to increased purchasing activities. Conversely, "Use of Sold Products" emissions continued to decrease, dropping from 299,246 tCO2e in 2023 to 255,154 tCO2e. This reduction reflects improved camera module energy efficiency, which lowered electricity demand and indirect emissions during product use, highlighting our efforts in product design for source reduction.

Moving forward, we will optimize product design to enhance energy efficiency and further reduce downstream emissions. Concurrently, we will strengthen procurement carbon management by implementing supplier carbon disclosure, evaluating low-carbon materials, and leveraging regional procurement strategies to minimize transportation and supply chain carbon footprints, fostering a more sustainable supply chain.

Chicony adopts a pragmatic approach by following a scientific carbon reduction pathway, executing three major steps: assessment, reduction, and offsetting, in order to gradually achieve the goal of net zero emissions by 2050. In addition to the three steps, we have also gradually introduced an internal carbon pricing mechanism. In 2023, the Company conducted future carbon price prediction for the first time by referencing the Network for Greening the Financial System (NGFS). According to the "orderly scenarios" provided in the Integrated Assessments Models (IAMs), the estimated carbon cost is NTD 4,722.97 (US$154.64/tCO2e). This internal carbon price is used to assess the impact of external regulatory policies and to support financial evaluations of emission reduction activities. Movingforward, we will continue to assess appropriate pricing based on international trends and methodologies, with the next update scheduled by the end of 2025.

Since 2022, Chicony has been promoting the ISO 50001 Energy Management System, and by 2023 and 2024, both the headquarters and major production bases have completed third-party verification. The major constituent of Chicony’s energy consumption is purchased electricity. Fossil fuels are mainly used for emergency generators, forklifts, company vehicles, dormitory boilers, etc. The total energy consumption in 2024 was 533,708.45 GJ, representing a 23.9% increase compared with 2023. Energy intensity also rose by 18.6% year-on-year. This increase was primarily driven by business growth, adjustments in production line layout in response to global trends, the reliance of imaging product manufacturing on tightly controlled cleanroom environments, and the continued advancement of production line automation.

Energy Conservation Projects

Energy Conservation Highlights Case Study of CEM3

The centrifugal compressor and production lines adopted compressed air heat recovery technology to reduce the demand of natural gas used for hot water in production areas and living quarters. A highlight of this project is the collaboration with an ESCO under a performance-based contract, which reduced the initial investment cost by compensating the service provider based on the agreed energy savings.

 

Annual energy savings: 16,125GJ
Carbon reduction benefits: 904.31 tCO2e

Energy Conservation Highlights Case Study of CEM2

Due to capacity adjustments at the CEM2, the overall power load decreased, causing the transformer system to operate below its optimal efficiency range. By reconfiguring the substation, the number of operating transformers was reduced from four to two, allowing them to maintain optimal load levels.

 

Annual energy savings: 112,319 kWh
Carbon reduction benefits: 50.21 tCO2e

In 2023, the Chicony Group announced its membership in the global renewable energy initiative RE100, committing to achieve 100% renewable energy usage across the entire Group by 2030. We primarily increase the use of renewable energy through the construction of our own solar panels, Power Purchase Agreements (PPA), and the purchase of Energy Attribute Certificates (EAC).

In 2024, the total electricity consumption of Chicony Electronics was 134,817.77 MWh, of which the usage of renewable energy amounted to 59,295.99 MWh, representing 44%. This marks a significant increase of 26.32% compared to the 46,941.16 MWh recorded in 2023. The renewable energy sources of Chicony Group include self-built solar panels generating 3,354.93 MWh (3%) and renewable energy certificates (I-REC & GEC) amounting to 55,941.06 MWh (42%). To ensure the traceability and quality of renewable energy sources, CEC is also actively engaged in signing CPPA. However, due to the electricity trading regulations in mainland China, these can only be presented in the form of certificates.

Self-Built Renewable Energy Capacity

Unit: MW

Rooftops of Solar Panels at Each Factory