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In response to the threat of global climate change, reducing greenhouse gas emissions has become the most important consensus worldwide. The UN Climate Change Conference actively encourages global cooperation in carbon reduction to achieve the goals of the Paris Agreement. The EU has introduced the Carbon Border Adjustment Mechanism (CBAM), requiring suppliers of carbon-intensive products to purchase corresponding CBAM certificates for their products to enter the EU market. In Taiwan, the Climate Change Response Act has officially come into effect, demonstrating the nation's commitment to achieving its 2050 net-zero transition vision.
As a global leader in backlight modules, Radiant Opto-Electronics adopts the Task Force on Climate-related Financial Disclosures (TCFD) framework to conduct regular annual assessments of climate change risks. The Company formulates environmental management policies and energy-saving, carbon-reduction strategies to mitigate greenhouse gas effects and enhance awareness among internal and external stakeholders regarding its environmental management practices and environmental impacts. In addition, considering the Company’s current phase of operational expansion and rapid growth, Radiant Opto-Electronics has aligned its climate change response strategies with the Paris Agreement and referenced the Science Based Targets initiative (SBTi) linear reduction pathway. The Company is actively formulating its “2030 Radiant Opto-Electronics Sustainability Carbon Reduction Target” and has committed to an absolute 25% reduction in greenhouse gas emissions (Scope 1 and Scope 2) by 2030.
Greenhouse Gas Management
Greenhouse Gas Inventory
Radiant Opto-Electronics has established a greenhouse gas inventory mechanism in accordance with ISO 14064-1:2018, the Climate Change Response Act, the Greenhouse Gas Emission Inventory and Registration Management Measures, the Greenhouse Gas Inspection Guidelines, the Greenhouse Gas Registration Guidelines, and the WBCSD/WRI Greenhouse Gas Inventory Protocol. The organizational boundary is set using 100% operational control, and a third-party verification mechanism has been introduced to comprehensively monitor greenhouse gas emissions.
In 2023, Radiant Opto-Electronics Group's Scope 1 direct greenhouse gas emissions totaled 2,055 tCO2e, while Scope 2 indirect emissions amounted to 69,670 tCO2e, bringing the total to approximately 71,725 tCO2e (Scope 1 and 2). Compared to 2022, emissions decreased by 33%, and when compared to 2020 (the base year for the 2025 and 2030 sustainable development goals), emissions reduced by 38%. Carbon intensity, however, showed a slight increase of 28% compared to 2022. All data were calculated in accordance with ISO 14064-1:2018 and verified by a third-party auditor. The Group's greenhouse gas emissions for 2024 are currently being verified by an external party as part of the annual plan. Any adjustments to the data will be disclosed in the next report.
【Scope 3 Inventory and Emissions】
Radiant Opto-Electronics conducts its Scope 3 emissions disclosure in accordance with the indirect emission sources outlined in ISO 14064-1:2018, known as Scope 3. The primary categories of emissions identified include "indirect emissions from transportation" and "indirect emissions from the use of sold products." Other categories not inventoried include those not directly related to Radiant Opto-Electronics or where data and information are difficult to obtain.
【Commitment to Carbon Reduction】
Radiant Opto-Electronics integrates carbon management into its overall operational strategy by consolidating the "Low Carbon Product Team," "Energy Efficiency Team," and "Green Procurement and Logistics Team" under the Sustainability Development Committee into a unified Carbon Management Task Force. Through monthly cross-functional meetings, the Task Force actively tracks carbon reduction performance. Concurrently, the Company has launched a "Green Proposal" incentive program to encourage employees to conceive carbon reduction projects. Themes include improving energy resource efficiency, reducing greenhouse gas emissions, and recycling waste. Through a substantial reward system and a rigorous review process, the initiative drives more innovative green actions across the Group.
In addition, the Company is committed to actively reducing carbon emissions impact and enhancing operational competitiveness. We have incorporated important carbon reduction goals proposed by various units within the Group into the Group's sustainable development performance indicators, including reducing greenhouse gas emissions at the source, replacing equipment with high carbon emissions, and implementing solar power generation systems. Through corporate internal mechanisms, we aim to deepen the Group's sustainability culture, rallying employees to work together towards practically achieving Radiant Opto-Electronics' proactive carbon reduction path and goals. Among these, regarding the Greenhouse Gas Reduction Targets, in 2024, various units were reconvened to discuss the "Sustainable Development Goals for Radiant Opto-Electronics in 2030," with a commitment to achieving the vision of a "25% reduction in absolute greenhouse gas emissions (Scope 1 + Scope 2) compared to the base year (2020)." Since the base year, Radiant Opto-Electronics has achieved an average annual reduction of approximately 12.5%. The primary reason is the effectiveness of the Carbon Management Team and renewable energy planning operations within the Group in reducing carbon emissions.
【Implementation of Internal Carbon Pricing Mechanism】
Radiant Opto-Electronics Corporation continues to strengthen its internal management of greenhouse gas emissions by internalizing the carbon costs arising from external climate regulatory policies as a corporate carbon price. This monetized cost is regarded as an important reference in the formulation of company policies. In response to the future development of decarbonization pathways in the manufacturing industry and the carbon fee standards announced by the Ministry of Environment, Radiant Opto-Electronics Corporation began cross-departmental internal assessments in 2024 and will officially implement an internal carbon pricing mechanism in 2025. This system incorporates factors such as energy market supply costs and government policy into its estimations.
Radiant Opto-Electronics Corporation has initially set its internal carbon price at NTD 300, referencing the concept of a shadow price. The price will be dynamically adjusted every two years, aiming for gradual alignment with international carbon pricing standards. This initiative is designed to enhance the integrity of the company’s carbon reduction strategies and financial planning, while also accelerating investments in decarbonization.
