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- Environmental Management
Facing the global threat of climate change, achieving net-zero emissions has become a critical global consensus. As a key member of Taiwan's corporate decarbonization efforts and a leading global provider of optical services, Radiant Opto-Electronics is demonstrating its firm determination to actively reduce carbon emissions. We do this by responding to the Paris Agreement's goal of limiting the global temperature increase to 1.5°C and by committing to follow the Taiwanese government's "2050 Net Zero Emissions" pathway, thereby contributing to the sustainability of our planet and humanity.
Furthermore, by implementing the TCFD (Task Force on Climate-related Financial Disclosures) framework, we regularly assess climate change risks and formulate corresponding environmental management policies and energy-saving and carbon reduction strategies. Considering that the company is in a phase of operational expansion and growth, we have referenced the SBTi's linear reduction pathway in developing our climate action strategy. This has led to our "2030 Radiant Sustainable Development Carbon Reduction Goal," under which we commit to a 25% absolute reduction in Category 1 and Category 2 greenhouse gas (GHG) emissions by 2030.
When planning our transition targets and roadmap, Radiant Opto-Electronics places great importance on the participation of our stakeholders, including suppliers, customers, industry peers, government, and civil society, to facilitate a smooth transition. Concurrently, we will continue to enhance our assessment of the nature-related and social impacts and risks associated with this transition, ensuring that the rights and interests of stakeholders such as employees, communities, and consumers are protected to achieve a just transition.
Climate Change
Climate Governance
Radiant Opto-Electronics designated the Board of Directors as the highest governance and decision-making unit for the climate issue and oversaw the effective operation of the climate governance mechanism. In addition, a Sustainability Committee has been established, consisting of eight members, including five independent directors, chaired by the Chairman & the President of the Board and with two Vice Presidents serving as Vice Chairpersons. The committee convenes at least twice a year and regularly reports ESG strategies and implementation results to the Board of Directors. Climate-related topics include TCFD/TNFD assessment results, greenhouse gas emissions, energy and waste management, among others. The execution and management of climate risk-related matters are carried out by the "Environmental Sustainability Team" and the "TCNFD Task Force group" under the Sustainability Committee. Ensured that the sustainable development strategy was integrated into company operations, that factors such as the severity and frequency of climate risks were taken into account, and that Radiant Opto-Electronics' determination to strengthen and implement climate governance was reinforced in practice.
In 2025, Radiant Opto-Electronics invited external professional consultants to conduct an on-site workshop for the identification of climate-related risks and opportunities, bringing together 40 managers and employees from across 8 departments to discuss the financial risks and opportunities posed by climate issues to the Company's operations. Climate scenario assumptions were developed for selected items. In 2026, Radiant Opto-Electronics will publish its inaugural TCNFD Climate and Nature-Related Financial Disclosure Report.
Climate Risk Management
Radiant Opto-Electronics actively participates in and monitors international initiative trends. In 2025, the Company used the opportunities and risk inventory recommended by the consultant to identify issue areas that were most relevant to its own operations. Through cross-unit collaboration, it identified the year’s risk and opportunity items, assessed the financial impacts of those risks, and continued to monitor international climate regulations and the net-zero goal. Integration of climate risks and opportunities with the Group's existing risk management (ERM) was scheduled to commence in 2026. The Company planned to progressively incorporate the climate risks and opportunities issue into the IFRS S2 workstreams to comply with FSC's new annual-reporting requirements for listed companies. All plants aligned with the financial boundary were to be included in the assessment scope, and financial quantitative analyses and estimates were to be performed.
Radiant Opto-Electronics conducted a capacity-building training session on "Financial Impact of TCFD Climate Risks and Opportunities" in Oct. 2025. In addition to the original TCFD task force members, senior management from the carbon management team, as well as personnel from the legal and risk management departments, were included to enhance foundational knowledge on climate topics. During the training, participants collectively identified the Group's climate risks and opportunities for 2025, including the assessment of impact intensity and likelihood, resulting in the Group's climate risk and opportunity matrix.
Climate Risk/Opportunity Matrix
Radiant Opto-Electronics compiled the risk and opportunity identification assessment forms from 8 departments. A risk and opportunity matrix was plotted with "impact intensity" on the vertical axis and " likelihood of occurrence " on the horizontal axis. Impact intensity is divided into 5 levels and likelihood into 8 levels (as shown in figure 1 and 2). Concurrently, the estimated timeframe of occurrence for each risk and opportunity was assessed, with short-term defined as 0-3 years, medium-term as 3-5 years, and long-term as over 5 years, to conduct the identification and assessment process.
In 2025, Radiant Opto-Electronics, through cross-departmental collaboration in identifying climate-related risk and opportunity items, 6 risks were identified, including: voluntary agreements, tropical cyclones, international conventions or agreements, investment in new technologies, extreme rainfall or drought, and changes in average precipitation. On the opportunity side, 3 items were identified, including: operational diversification, low-carbon products and services, and adaptation and solutions.
