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- Environmental Management
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.
Energy Resource Management
Energy Structure
In 2024, the primary source of energy used by Radiant Opto-Electronics was purchased electricity, accounting for 99.3% of the Company's total energy consumption. Additionally, natural gas, gasoline and diesel were used, but their consumption was very low, each constituting less than 0.05% of the total energy consumption. Specifically, the electricity usage was 128,059.9 MWh, and natural gas usage was 146.6 MWh.
Electricity Usage
Electricity serves as the primary source of power for process production equipment and plant systems. In 2024, the Group’s total electricity consumption was approximately 128.0 million kWh, with an electricity intensity of about 23.84 (kWh per kilogram of plastic pellets input). Radiant Opto-Electronics continues to improve energy usage efficiency within the plant through various energy-saving measures. In 2024, compared to 2023, electricity consumption decreased by approximately 464,795 kWh, equivalent to a reduction of 229.61 metric tons of CO2 emissions. Compared to 2018 (the base year for the 2025 sustainable development goals), the cost of electricity usage for the Group's energy resources decreased by 32.13%.
To effectively reduce the environmental impact of the greenhouse effect, Radiant Opto-Electronics prioritizes "energy saving" as the primary objective in its energy use. Initiatives such as adopting dual chilled water systems and heat recovery and reuse in refrigeration equipment have been continuously implemented. Over the years, the Company has introduced various energy-saving technologies, such as automatic control of equipment, enhancement of equipment efficiency, energy recovery and reuse, and production management improvements, to reduce energy consumption. Additionally, during the equipment setup design and procurement stages, energy-efficient devices are prioritized. At the same time, energy management schemes for offices and public areas, including constant temperature control of air conditioning, are promoted to strengthen the concept of energy saving among employees. Efforts also continue in reducing raw material usage and increasing waste recycling to mitigate greenhouse gas emissions.
In 2023, Radiant Opto-Electronics implemented and completed the verification of the ISO 50001 Energy Management System. Approximately NT$4.06 million was invested to establish an energy management system platform. This platform enables real-time monitoring of energy consumption, facilitating statistical analysis and intelligent energy-saving management of various system equipment. It assists organizations and fleet groups in managing and improving energy consumption, promoting best practices in energy management and strengthening good management behaviors.
The Facilities Department team at Radiant Opto-Electronics Corporation Facilities Department coordinated the planning and implementation of the Group's carbon management strategy in 2024. This involved designing a power consumption system and building an energy management system. The team conducted plant surveys, engaged in planning and drawing, held discussions and reviews, and utilized software and hardware computing to cover all major energy-consuming equipment across the Group's four plants. By implementing the energy management system, our aim is to attain tangible benefits that will aid the company in enhancing energy efficiency, curbing energy expenses, and mitigating greenhouse gas emissions.
Renewable Energy Initiatives
Energy The solar photovoltaic systems was installed at its production bases in Mainland China, with a total installed capacity reaching 3,626 kW. Among these, the Wujiang plant has the highest generation capacity of 1,762 kW, with an annual total electricity generation of approximately 4.037 million kWh. In 2024, renewable energy (solar power) accounted for about 3.2% of the total electricity consumption across the entire group. The Group will continue to expand its use of self-generated green electricity, contributing to the promotion of clean energy. In 2024, in addition to continuously optimizing the installation of solar photovoltaic systems, Radiant Opto-Electronics also purchased 48,357 renewable energy certificates (RECs). Through the implementation of various initiatives, the Company achieved a significant increase in its green electricity usage, demonstrating strong commitment and action toward supporting renewable energy and advancing low-carbon transition.
In recent years, in response to customer demands, our three subsidiary plants in mainland China have actively planned for diverse renewable energy sources. We have leased factory rooftops to photovoltaic power companies to establish solar power generation. The green electricity generated is then repurchased at rates more favorable than market prices for internal use at each factory. This initiative aims to reduce the consumption of grid electricity and increase the use of renewable energy, thereby achieving the goal of reducing Scope 2 carbon emissions from electricity use. The Kaohsiung plant will also focus on Taipower's "Small Green Power" or "Low-Carbon Power with Segmented Tariffs (RE30)". In 2024, the company reassessed its group-wide sustainability goals and established a long-term vision of achieving a "40% share of renewable energy across the entire group by 2030".
Water Resources Management
As climate change intensifies, the frequency and severity of extreme weather disasters have increased more than ever before, making water resource management a critical issue for corporate operations. However, Radiant Opto-Electronics does not have processes that consume large amounts of water. The primary uses of water are for domestic purposes and air conditioning equipment, and the Group is located in processing export zones or development areas where the water source is third-party water (tap water). There is no use of surface water, groundwater, seawater, or produced water, and since these locations are not under water stress, the environmental impact is relatively low. Radiant Opto-Electronics continues to strengthen communication on water conservation, raising employee awareness on the importance of water resources and encouraging responsible usage.
The effluent water quality from Radiant Opto-Electronics' various factory sites meets local regulatory standards and is discharged into the regional wastewater sewer systems for treatment, thereby not identifying any significant impact on water sources, or substantial impacts on the surrounding communities, environment, or biodiversity. If any production site fails to meet discharge requirements, a corrective improvement plan is initiated. At the same time, Radiant Opto-Electronics regularly tracks the water usage at each factory monthly and continues to improve the operational efficiency of existing equipment, construct additional standby units, and enhance operational flexibility to mitigate risks to company operations from water resource issues caused by extreme weather, such as heavy rain or drought.
Statistics showed that the Group's 2024 third-party water (tap water) intake was approximately 1,140.8 million liters. Currently, only the Nanjing plant has a water recycling system. Therefore, the water savings for the entire group are represented by the Nanjing plant. In 2024, the water saved amounted to approximately 23.561 million liters.
Water Conservation Programs and Measures
Due to Taiwan's topography, it is difficult to effectively store rainfall, and with climate change, the frequency of extreme weather events is increasing, leading to a volatile climate characterized by droughts and heavy rains. Recently, mainland China frequently experiences significant floods and droughts. Despite the fact that Radiant Opto-Electronics does not have water-intensive processes, the Company places a high priority on water resource management. At its Kaohsiung plant, the Company has implemented various water conservation measures. These include the use of water-saving regulators in toilets, low-flow faucets in washbasins, the recycling of wastewater produced by reverse osmosis (RO) systems, the design of water recirculation models to reduce discharge in processes, and the reuse of condensate water from air conditioning units. In addition, Radiant Opto-Electronics has implemented a dust-free room temperature and humidity alarm system, with abnormal alerts being recorded individually. This not only helps reduce water resource usage but also allows for real-time monitoring and improvement of equipment humidification efficiency.
