Nature and Biodiversity

Striving for harmony with nature is the primary task for a business's future operations. Biodiversity and forest conservation are fundamental to maintaining natural ecosystems, protecting the Earth's environment, and sustaining economic prosperity. Radiant Opto-Electronics' global production sites and offices are not located within protected areas or habitats, and there are no rare species of flora and fauna, natural forests, or species on the national endangered list present at any of these sites.

To fulfill its commitment and respond to the biodiversity initiatives, Radiant Opto-Electronics has adopted the version of the TNFD framework. The Company will gradually assess and disclose the risks, impacts, and dependencies related to nature across its entire value chain, deepen its understanding of the potential risks and opportunities that its operations could pose to biodiversity, and implemented appropriate mitigation measures.

Biodiversity and Commitment to Zero Deforestation

The Company adopted the Radiant Opto-Electronics biodiversity and commitment to zero deforestation, and it was approved by the Board of Directors. When conducting R&D, production, services, and other business activities, Radiant Opto-Electronics is committed to enhancing the conservation of marine and terrestrial ecosystems, improving the assessment of the sustainable use of resources and the equitable and reasonable distribution of benefits, and reducing the impact of corporate operations on the natural environment, living organisms, and people. In addition, it committed to regularly conducting biodiversity risk assessment, to establish corresponding policy goals according to priorities, and to adopt mitigation measures — including avoidance, minimization, restoration, and offsetting — to reduce ecological impact, with the aim of achieving by 2050 the global shared goal of an environment Net Positive Impact (Net Positive Impact) and zero deforestation. It actively cooperated with suppliers and external stakeholders to respond to the United Nations Convention on Biological Diversity initiative.

Radiant Opto-Electronics’ Commitment to Biodiversity and Zero Deforestation:

1.  To avoid locating our own operations and value chain activities in areas identified as global or national biodiversity hotspots, as well as their surrounding regions or ecologically connected zones, thereby preventing any adverse impacts on species listed as protected.

2.  Should our operations or value chain activities be found to have adverse impacts on biodiversity or ecosystems—including terrestrial, freshwater, and marine—we will implement measures according to the mitigation hierarchy (in the order of Avoidance, Minimization, Restoration, and Offset). This approach is taken to mitigate biodiversity impacts, working towards the goal of No Net Loss (NNL).

3.  Following the TNFD-LEAP approach, we will integrate our entire value chain into a materiality analysis to identify and prioritize risks and opportunities. We will then develop corresponding strategies for significant items, establish monitoring indicators and management targets, and implement "Avoid" and "Reduce" measures to minimize ecological impacts. We are committed to continuous improvement and publicly reporting on our progress.

4.  Radiant Opto-Electronics integrates biodiversity and zero deforestation as material topics in its company-wide assessment process, with regular reviews conducted by the Corporate Sustainability Committee. This policy is implemented in collaboration with upstream and downstream partners across our value chain (including suppliers, contractors, customers, joint ventures, and communities) to collectively achieve the vision of the UN Convention on Biological Diversity (CBD).

In order to fulfill Radiant Opto-Electronics' commitment to reducing pollutant releases to the environment and to meet its commitments on biodiversity and zero deforestation, Radiant Opto-Electronics adopted FSC-certified, forest-friendly paper for business printing and for cleaning supplies used in work and living environments, thereby ensuring that its paper products were not linked to deforestation activities. Additionally, cleaning supplies—such as hand soap, detergent, and dishwashing liquid—were all sourced from products bearing the Taiwan Environmental Label, cultivating staff awareness of ecological and environmental protection and fostering concrete actions through attention to everyday details.

Introduction of TNFD-LEAP Biodiversity Risk Assessment

To implement and align with the TNFD initiative, Radiant Opto-Electronics has introduced the LEAP biodiversity risk assessment. The Company applies tools such as the WWF Biodiversity Risk Filter and the ENCORE Database to evaluate the natural dependency and impact risks across its entire value chain. For risks rated as moderate or higher, the Company adopts the AR3T action plan, focusing on measures to "avoid" and "reduce" ecological impacts.

According to the LEAP methodological steps recommended by the TNFD, Radiant Opto-Electronics first conducted an analysis of nature-sensitive operating locations and preliminarily identified the Company's potential dependencies on and impacts to nature within its operations and value chain. In its nature-related risk analysis, Radiant Opto-Electronics, based on the geographic locations of 46 value chain sites, used geospatial data repositories — the World Database on Protected Areas (WDPA), Taiwan Ecological Network, the Disaster Risk Adaptation, the China Institute of Public and Environmental Affairs, ENCORE, and other geospatial databases — to conduct a potential-area analysis to identify whether the areas contained biodiversity-sensitive locations. Following an overlay analysis, a total of 14 sites within direct operations and the value chain were identified as having potential moderate-to-high dependency and impact. The operations of these sites complied with local regulatory requirements, and no evidence of significant ecological impact was observed. We will continue to monitor the situation to prevent any adverse effects on the ecosystem.

Radiant Opto-Electronics conducted an inventory of Taiwan's relevant ecological conservation regulations and the boundaries of protected areas designated by non-governmental plans. It consolidated 8 types of protected-area boundaries and, to align the analysis with international standards, analyzed the conservation targets for each protected-area planning type and mapped them to the protected area categories of the International Union for Conservation of Nature (IUCN).

Identification of Natural Dependencies and Impact Factors

Radiant Opto-Electronics defined the analysis boundary as value chain sites worldwide that were located near ecologically sensitive areas. Taking into account industry characteristics and operating locations, it used the ENCORE tool—developed jointly by the Natural Capital Finance Alliance (NCFA) and the United Nations Environment Programme Finance Initiative (UNEP FI)—and the biodiversity risk filter (BRF) provided by the World Wide Fund for Nature (WWF) to screen the dependence of Radiant Opto-Electronics’ value chain on ecosystem services at moderate or higher levels.

This assessment identified 11 natural capital dependency factors and 8 impact factors. Using international analytical tools, it evaluated the value chain’s impact on and dependence upon nature. With respect to dependence, it estimated the severity of impacts in the event of disasters and the current state of adaptation, based on concerns about natural hazards, natural resource use, and pollution regulation issues. With respect to impact, continuous attention have been paid to whether operations at each point of the value chain caused damage to the environment, resource depletion, or pollution; impact management measures have been developed; and the impact of value chain activities on nature have been identified.

Survey of Dependence on Nature and Impact

We further assessed the degree of dependence on and impact on natural capital for the 11 identified natural capital dependence factors and the 8 identified impact factors. During the dependency assessment, natural hazards and issues of natural resource scarcity that warranted attention were selected, and the severity of impacts and the status of adaptation measures in the event of a disaster were evaluated, thereby identifying the ecosystem services on which the Company depended. In the impact investigation, the focus was on whether each plant site has caused ecological degradation, resource depletion, pollution, or other disturbances as a result of operational activities, and on inventorying whether responsive management measures haves been established, thereby identifying the impact of plant operations on the natural environment. The TCNFD Task Force consolidated and analyzed the data, using "the extent to which an issue was observed by production sites" to determine exposure; using "the extent of an issue’s financial impact" as the relative risk level for matrix evaluation; and, in accordance with materiality screening principles, subjecting priority issues to risk and opportunity analyses. After further categorization and synthesis, four representative nature-related dependency factors and two significant influence and impact factors were identified, which served as the basis for the subsequent identification of nature-related risks and opportunities.

Green corporate practices

Nature and biodiversity have become one of the most closely watched and impactful sustainability issues in recent years. Radiant Opto-Electronics continues to promote its eco-friendly "Green Living Practice Program" to enhance employees’ awareness of energy conservation and environmental protection, and to expand the influence of a green corporate culture. In addition, Radiant Opto-Electronics partners with the Radiant Education Foundation to promote the "Sea You Again – Infinite Ocean Action Plan," advancing marine environmental education and conservation efforts. Aligned with the global goals of achieving net positive impact on ecosystems and zero deforestation by 2050, the Company actively collaborates with employees, suppliers, and external stakeholders to support the initiatives of the United Nations Convention on Biological Diversity.

Promoting Conservation Actions for the Marine Environment through Education

Radiant Opto-Electronics, in partnership with the Radiant Education Foundation, is promoting the "Sea You Again Infinite Ocean Action Plan," an initiative to enhance marine environmental education. Central to this program is "Education Rooted," which involves organizing marine-themed picture book workshops. These include training sessions for educators on marine biodiversity and adjusting course formats to align with specific themes. Furthermore, the program encourages teachers to integrate ocean-loving actions into their curricula through the evaluation of marine lesson plans, thereby embedding environmental education DNA into the lives of school-aged children.

In addition, Radiant Opto-Electronics continues its ocean-themed picture book publishing program, releasing in its second year a self-produced title, The Night of the Full Moon. The book focuses on the distinctive marine characteristics of southern Taiwan and is published in a thematic format, telling stories of lagoons, fishing ports, and ocean currents. Through the medium of picture books, the Company aims to guide the public—through reading and visual art—to recognize the intricate life network that closely connects Taiwan with marine resources.