GIGABYTE is committed to mitigating the impacts caused by business operations on climate change. Visionary management policies and effective response plans have been adopted for effectually promoting climate-rated management and adaptation measures. The GIGABYTE Green Sustainable Development Committee, chaired by the Company’s chairman, serves as the highest level responsible for supervising organizational emission management, reduction target setting, and practical measures and action plans. The Sustainable Development Office under the Operation Management Center is in charge of execution and promotion of the measures, and reporting the progress and outcomes of climate-related management to the Center, the Committee, and the Board regularly.

Greenhouse Gas Emission Management

GIGABYTE is not only concerned with climate risks and tendencies but also expecting to become a corporate practitioner of emission reduction through implementing climate mitigation actions and expanding the influence to a larger scope. In 2020, we decided to adjust the current long-term emission reduction target to a more ambitious commitment: “GIGABYTE advances the target year of 50% reduction from 2030 to 2050”!

GIGABYTE will be more active in managing emission reduction processes and performance and also take a broad view of long-term reduction target through conducting greenhouse gas emission inventory based on ISO 14064 as well as reaching the “333 Reduction Plan” that aims at cutting emissions, water, and waste by 3% every year.

The globe is now encouraging businesses to respond to the Science-based Targets Initiative (SBTi) and set up their emission reduction target through scientific methods that can ensure keep the global warming under 2°C. GIGABYTE has not publicly committed to setting a science-based target. However, We have introduced the tools and target criteria recommended by SBTi to analyze the gap of the pathway between the existing carbon reduction target and the target that meets science-based principles.

Greenhouse Gas Emissions  Status

The greenhouse gas emissions of GIGABYTE in the recent 2 years are as follow:

  • The gross greenhouse gas emission in 2019 (Scope 1 and Scope 2) was 28,458.54 t-CO2e. The main source was indirect emissions from purchased electricity that accounted for 97.7% of gross emissions. The emissions increased slightly compared to the 2018 level but had reduced 20,498.6 t-CO2e while comparing to the base year 2009, equivalent to decreasing by 41.87%.
  • The gross greenhouse gas emission in 2020 (Scope 1 and Scope 2) was 28,771.93 t-CO2e. The main source was indirect emissions from purchased electricity that accounted for 97.7% of gross emissions. The emissions reduced 20,185.21 t-CO2e while comparing to the base year 2009, equivalent to decreasing by 41.23%.

For the details of emission reduction, please refer to CSR Performance – Environmental Aspect.

Identification of Climate-related Risks and Opportunities

To get a full picture of the impacts on our business resulted from climate change or the opportunities that it may create, GIGABYTE identifies material climate-related issues, establishes responding strategies, and reviews and re-evaluates every year.

Process of Climate-related Risk Identification

Climate Risk Matrix

Climate-related Risk Risk Type
1. Increasing requirements of GHG emissions disclosure Transition Risk – Policy and Legal
2. Carbon-related information disclosure and control of existing products Transition Risk – Policy and Legal
3. Electricity price fluctuations caused by energy structure adjustment Transition Risk – Policy and Legal
4. China’s environmental protection laws and regulations on corporates Transition Risk – Policy and Legal
5. Requirements for corporate self-initiated carbon reduction and energy transition Transition Risk – Technology
6. Increasing emphases on climate issues from stakeholders Transition Risk – Market
7. Change of consumer preference Transition Risk – Reputation
8. Worsening severity of extreme weather events Physical Risk – Acute
9. Variation of precipitation and climate pattern Physical Risk – Chronic
10. Continual rising in mean temperature Physical Risk – Chronic

GIGABYTE Climate-related Risks and Opportunities

Transition Risks

[Risk Description]

  • Expansion in the control scope of the national GHG emission reduction and management regulation.
  • Release of air pollution and renewable energy regulations as well as changes in electricity rates by Taipower in the future.
  • The China government has strengthened its environmental management controls by means of setting the 14th 5-Year Plan, levying environment taxes, and establishing a national emission trading scheme. All of these would bring compliance risks to our manufacturing locations in China.

[Potential Financial]

  • Increased operational costs in order to comply with the regulations.
  • Increased production costs because of rising energy fees and waste treatment fees.

[Management Measure]

Strategy:

  • Introduce GHG emission management system.
  • Introduce complete process automation to enhance energy efficiency.
  • All operational bases implement energy conservation solutions and replace old equipment to improve process efficiency.
  • Invest in climate-related research and management manpower.

Action:

  • Introduce ISO 14064 management system and be certified by a third party.
  • The GIGABYTE Green Sustainable Development Committee establishes sustainability strategies and supervises the progress of implementation.
  • The unit with specific responsibility continuously follows the tendency of related international laws and regulations.
  • Participate in domestic climate response meetings and adjust the direction of climate policy in time to meet compliance requirements.
[Risk Description]

In response to the global consensus to keep temperature increase well below 2°C, international markets will execute stricter standards on products’ carbon footprint disclosure. Nearly 96% of GIGABYTE’s products are exported, which means that we are very likely to be affected by various emerging rules in international markets.


[Potential Financial]

Decreased demand for products and services, which then leads to decreased revenues or increased operational costs due to new environmental requirements.


[Management Measure]

Strategy:

  • Implement energy conservation policies in all operational bases and invest in the research and development of high-energy-efficient and low-carbon products.
  • Strengthen supply chain management to reduce the environmental impacts of the overall value chain.

Action:

  • Appropriate research and development budget from revenue every year to develop high-efficient and low-carbon products.
  • Voluntarily introduce LCA and MFCA methods, and inventory and disclose scope 3 emissions.
[Risk Description]

With rising awareness of climate crises, consumers’ preferences may be changed.


[Potential Financial]

Declined demand for products and services due to the change in consumer preferences.


[Management Measure]

Strategy:

  • Calculate and disclose environmental data of products such as carbon footprint.

Action:

  • Publically disclose 12 environmental impact aspects of main product lines in product environmental reports.
[Risk Description]

  • With rising awareness of climate crises among businesses, their requirements for emission reduction along supply chains will become increasingly strict. The suppliers who cannot meet their requirements would face losses of orders.
  • In response to the laws and regulations, businesses need to develop renewable energy and low-emission-related technologies.

[Potential Financial]

  • Declined demand for products and services due to the change in customer behavior.
  • Increased investment in applying new processes or new business models.

[Management Measure]

Strategy:

  • Invest in the research and development departments to create more products that meet the market expectation and requirements.
  • Set energy-saving targets, plan green projects, and track the results and performance.

Action:

  • Continue implementing the “333 Reduction Plan”, which strives for reducing carbon emissions, water use, and waste by 3% every year.
  • Introduce ISO 14064 management system and obtain third-party certification.
  • Introduce tools such as LCA and MFCA to examine potential opportunities to save energy consumption.
  • Launch the Sustainability Fund that uses the savings of energy fees from the previous year as rewards for resources reduction in manufacturing processes and low-carbon product proposals.

Opportunity Derived from Transition Risk

  • Join the carbon trade mechanism to obtain additional incomes.
  • Lower down operational costs by improving the energy efficiency of processes and equipment.
  • Strengthen the brand competitiveness through crossing into low-carbon technology services or markets.
  • Shift into green product services to fit in the consumer preferences.
  • Apply renewable energy to improve brand favorability.

Physical Risk

[Risk Description]

Extreme weather events become more and more frequent and severe. Located in the northwest Pacific typhoon-affected area, Taiwan is particularly threatened by floods and typhoon disasters


[Potential Financial]

More threats to the health and safety of employees and increased costs in manpower management and maintenance, which then result in reduced profits.


[Management Measure]

Strategy:

  • Develop typhoon- and flood-related management approaches and raise the diversity of suppliers.

Action:

  • Establish the “Risk Emergency Management Procedure” based on the ISO14001 standard.
  • Diversify the supply chain to ensure a stable supply of critical raw materials.
[Risk Description]

The Headquarters, manufacturing bases, and most of the important suppliers are located in the marine areas. With the risk of drought and flood increases, the stability of operation and material supply may be affected.


[Potential Financial]

Decreased revenues and lessened productivity due to transportation interruption and the unstable supply of raw materials along the supply chain.


[Management Measure]

Strategy:

  • Develop typhoon- and flood-related management approaches and raise the diversity of suppliers.

Action:

  • Establish the “Risk Emergency Management Procedure” based on the ISO14001 standard.
  • Diversify the supply chain to ensure a stable supply of critical raw materials.
[Risk Description]

Global warming continues to intensify, which will lead to a substantial increase in cooling costs of offices and factories.


[Potential Financial]

Increased energy expense rates and production costs.


[Management Measure]

Strategy:

  • Monitor and improve air-conditioning efficiency, and establish response plans for extreme weather.
  • Introduce the idea of green architecture to lower indoor temperatures.

Action:

  • Replace air-conditioners or improve the energy efficiency.
  • Establish the “Risk Emergency Management Procedure” based on the ISO14001 standard.
  • Install and maintain the G-HOME GIGABYTE Sustainable Eco-Roof, which can effectively lower the indoor temperature of the highest floor level by 2.5°C, and rooftop surface temperature by 25°C.

Opportunity Derived from Physical Risk

  • Diversify the supply chain and decentralize the supply of goods to strengthen the stability of material supply and improve the resilience to physical risks.
  • Lessen operational costs by strengthening and improving the energy efficiency of process equipment.

Climate Scenario Analysis