Governance

In response to the operational impact resulted from climate change, Radiant Opto-Electronics Corporation has set up Sustainable Development Commission in accordance with the "Organizational Rules of Sustainable Development Commission" and "Code of Practice for Corporate Social Responsibility", to continue to focus on sustainable development issues and report to the Board of Directors annually.
 

Strategy

To address the issue of climate change systematically, Radiant Opto-Electronics Corporation has since 2020, refer to the framework of Task Force on Climaterelated Financial Disclosures (TCFD) from the Financial Stability Board (FSB), gradually activating the identification of climate risks and opportunities, to improve transparency in climate change risk management.
 

Risk Management

Through the annual management strategy meeting, Radiant Opto-Electronics Corporation holds an annual management strategy meeting where department heads convene to identify the various operational risks of the company, integrate the Company's strategic objectives, and review risk management policies and procedures approved by the Board of Directors in 2022. The meeting also includes a comprehensive risk analysis that considers all aspects of corporate sustainability, including climate change. Our goal is to integrate climate change-related risks into our risk management strategy and make climate action and risk management a major sustainable theme in 2022. To achieve this, we will follow the TCFD framework to collect data on climate situations, assess climate risks and opportunities, verify assessment results, and continuously monitor and track climate risk management steps.

Indicators and Goals

Radiant Opto-Electronics Corporation is using "mitigation" and "adaption" strategies to tackle climate change. In terms of mitigation, the Company continue to adopt optimizat i o n technolog y and have set specific and quantitative targets, i.e to reduce greenhouse gas emissions per unit product by 20% in 2025 compared with 2015. In terms of adaptation, to coordinate with insurance company to get relevant insurance covered to reduce the impact of climate disasters on the operations of the Company.
 

GHG Inventory

Started from 2020, Radiant Opto-Electronics Corporation has set up crossdepartmental project team to form a standard mechanism for greenhouse gas inventory with reference to the new edition of ISO 14064-1: 2018 and the inventory guidelines of domestic and foreign institutions. Other than the previous internal carbon inventories, the Company plan to develop carbon inventories at value chain, to monitor inventories of indirect greenhouse gas emissions during transportation, products used, related to use of products and other sources. To check greenhouse gas emissions of Taiwan factory and Mainland factories regularly every year, covering 100% of factories areas of the Company, and the inventory is verified by third-party. Greenhouse gas emissions of the Company is being fully monitored, and carbon
management is being implemented.

In 2021, the total greenhouse gas emissions of Radiant Opto-Electronics Corporation will be approximately 118,400 tonnes of CO2e (Scope 1 and 2). The carbon intensity of Scope 1 and 2 will be slightly reduced by 0.5% compared to 2020 and 36% compared to 2015 (the base year of the 2025 sustainability goal). The main source of greenhouse gas emissions is the Scope 2 of indirect greenhouse gas emissions, accounting for about 97%. The inventory encompasses all facilities that fall under the operational control of the Corporation, including factories situated in both Kaohsiung and Mainland China. The greenhouse gas categories considered are Carbon Dioxide ( Methane ( Nitrous Oxide (), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), Nitrogen Trifluoride ( and Sulphur Hexafluoride ( The GWP preset values have been sourced from the IPCC Fourth Assessment Report of 2014, while the electricity carbon emission factor for electricity is based on the most recently released data from the location of respective factory's location. In 2022, currently all factories are currently undergoing external audits as part of the Corporationy's annual planning. Any revisions to the data revision, it will be disclosed in the upcoming report.

Carbon neutral operations

In light of the climate change challenge and the worldwide movement towards carbon reduction, Radiant Opto-Electronics Corporation has formed a Carbon Management Group within the Sustainable Development Committee. The group's primary objective is to establish carbon reduction goals for lowcarbon products, energy eciency, and green procurement and transportation. Additionally, the group aims to promote carbon neutrality for the corporation by 2050. Each team is led by a supervisor at the director level or above who serves as the team leader. The team also includes members at the managerial level or above who participate in tracking carbon reduction performance on a monthly basis. The team reports their findings to the Group President and the Executive Center supervisor on a quarterly basis. Additionally, the Sustainable Development Committee regularly reviews the performance of carbon reduction performance and develops a strategic blueprint for environmental sustainability. In 2022, the Group has developed four significant carbon reduction strategies, namely: Group Carbon Management, Low Carbon Products and Services, Energy Eciency and Renewable Energy Use, and Supplier Sustainability Management. We have undertaken 14 strategic development tasks to proactively address the challenge of achieving net zero carbon emissions.