Biodiversity

Natural capital is one of the key resources for corporate operations, and various operational activities interact with and influence natural ecosystems. GIGABYTE has long been concerned with environmental issues and is committed to taking action within its own operations to prevent operational activities from harming biodiversity. At the same time, in response to the “Zero Deforestation by 2050” initiative and to achieve the vision of “Zero Net Loss of Nature and Positive Net Benefits,” the company has established the “ Biodiversity and No Deforestation Commitment” as a guiding principle for promoting biodiversity management.

Natural Capital Dependency Analysis

GIGABYTE adopts the LEAP methodology recommended by the Taskforce on Nature-related Financial Disclosures (TNFD) to assess the impact and dependency of its business services on natural capital. Based on the ENCORE database and materiality screening, the company identified the degree of dependency of its value chain on environmental assets. The analysis revealed that up to 67% of the dependency is concentrated in the upstream raw material production and component manufacturing stages. A closer examination of the top five environmental assets by dependency reveals: soil and sediments, terrestrial landforms, species, ecological structural integrity, and water resources; the top seven ecosystem services by dependency include: water provision, water purification, flood regulation, storm mitigation, flow regulation, rainfall pattern regulation, and local atmospheric and ecosystem dilution and buffering functions.

Environmental Dependency Analysis of GIGABYTEʼs Value Chain

To further understand the impact of value chain operations on natural capital, GIGABYTE utilized the database of significant environmental impact factors established for various industries within the ENCORE platform. By incorporating and performing a weighted analysis of the value chainʼs dependence on natural capital at each stage, the company ultimately identified six potential environmental impact drivers ranked by materiality, including “emissions of hazardous substances into soil and water, disturbances such as noise and light pollution, volume of water use, non-GHG air pollution emissions, generation and discharge of solid waste, and GHG emissions.”

Environmental Impact Drivers of Value Chain Operations

Value Chain Operational Sites and Biodiversity Conservation Areas

GIGABYTE utilized the IUCNʼs definition of protected areas to conduct an overlay analysis of its own operational sites, top 100 suppliers, upstream smelters, and downstream service locations. The results showed that GIGABYTEʼs own operational sites, overseas affiliates, the operational sites of its top 100 suppliers, and downstream after-sales service locations are not directly located within protected areas. To deepen our protection of surrounding ecosystems, GIGABYTE further centered the analysis on our operational sites in Taiwan and extended the analysis radius outward by 2 to 10 kilometers. Through this risk screening, we aim to identify potential indirect impacts and ecological dependencies, thereby establishing corresponding preventive measures or environmental education initiatives to address potential impacts. At the same time, we have traced back to smelters further upstream in the value chain to examine their overlap with ecological conservation areas. Analysis results indicate that approximately 5% of smelters may be at risk of being located within ecological conservation areas.

Nature-Related Risk and Opportunity Management Strategy

Transition Risks

Physical Risks

Nature-Related Opportunities

Biodiversity Management Strategy

GIGABYTE actively promotes biodiversity management, demonstrating its commitment to sustainable development. The strategy is built around four key pillars:

1. Enhancing Operational Environmental Management – Monitoring and managing emissions related to manufacturing processes to reduce ecological disturbances.
2. Implementing Product Stewardship – Promoting green design and recycling mechanisms to reduce environmental pollution from electronic waste.
3. Managing Supplier Environmental Impact – Improving sustainability performance across the supply chain to build a sustainable value chain.
4. Environmental Compensation Actions – Engaging in activities such as afforestation and habitat restoration to give back to nature.

Through diverse initiatives, GIGABYTE is committed to comprehensive biodiversity protection.