Climate Risk

As extreme weather has become a common occurrence in recent years, energy conservation and carbon reduction are not just a corporate slogan; it is an important indicator for fulfilling corporate sustainability responsibilities. In addition to identifying operational risks, Alltek also adopts the Task Force on Climate-Related Financial Disclosures (TCFD) issued by the International Financial Stability Board (FSB) to disclose climate-related financial information in four major areas: “governance, “strategy,” “risk management,” and “indicators and targets” to disclose climate-related information so that the Company can understand its risks and opportunities associated with climate change issues and to mitigate and adapt to the operational impacts of climate change.

Fraework for Disclosure of Climate Change-related Risks and Opportunities





With respect to the governance structure of climate change related risks, the Company’s Board of Directors is the top unit for risk management, with the objective of complying with laws and regulations and promoting and implementing the Company’s overall risk management. The Board of Directors has a clear understanding of the risks faced by the operations in order to ensure the effectiveness of risk management and assumes the ultimate responsibility for risk management. Under the Board of Directors, a “Corporate Sustainability Committee” has been established, and a “Corporate Governance and Risk Management Team” has been established under the Board of Directors. The Chief Corporate Governance Officer serves as the convener and assesses four major types of risks: operational risk, financial risk, information security risk, and environmental risk (climate change). The risk management reports of each unit are regularly reviewed to track the progress of implementation and improvement to be submitted to the Corporate Sustainability Committee.

The Corporate Sustainability Committee reports the implementation of risk management policies to the Board of Directors on a yearly basis, proposes necessary improvements, and sets the priority of risk control according to the changes in the internal and external environment and the resolutions of the Board of Directors.






The Company pays close attention to the trend of global climate change and the direction of international response, and incorporates this as a major issue of corporate sustainability which is continuously analyzed and controlled. The key points of each strategy are summarized as follows:

  1. Greenhouse gas (GHG) inventory and verification: To meet the needs of the competent authority, we have gradually completed the GHG inventory and third-party verification of all offices and warehouses.
  2. Distributor and sale of low-carbon products: Regularly evaluate the distributorship of suitable green component production lines; continue to pay attention to market demand and low-carbon issues, and promote green component product lines to customers.
  3. Enhanced climate resilience: Cargo is regularly monitored during the rainy season, and the cargo is subject to moisture-proof treatment to enhance climate resilience.
  4. Energy management and monitoring: Improve energy efficiency and reduce carbon emissions through the promotion of air conditioning temperature settings in offices and regular inspections of temperature and humidity monitoring equipment in warehouses.
  5. Warehousing management training: Warehouse practical training courses are used to broaden employees’ understanding of warehousing management procedures and maintain efficient distribution processes and transportation modes.
  6. Cultivation of talents for low-carbon technology transformation: Through internal and external resources, actively understand carbon-related issues and improve the Company’s awareness of low-carbon technologies.
Risk and Opportunity Management
  • Risk and Opportunity Identification Process

The Company’s risk management team is responsible for collecting information on the risks and opportunities of climate change and energy and conducting reviews each year. Consider transition risks (policy and legal/market/technology/company reputation) and physical risks (chronic and acute), and conduct risk assessments for possible events, including the degree of financial impact, impact time (short, medium and long term), impacted parties in the value chain, and the likelihood of risks.

When drafting scenarios for opportunities, we consider resource efficiency, energy sources, products and services, markets, and adaptability, and conduct an opportunity assessment that includes the degree of financial impact, the duration of impact (short, medium, and long term), the affected parties in the value chain, and the likelihood of opportunities.

  • Climate Risk Scenario Analysis

In accordance with the TCFD guidelines, the Company used the worst-case scenarios for the two risk types of transformation and entity to incorporate the analysis results into the strategic resilience assessment.

For information on transition risk, please refer to Taiwan’s 2050 net-zero emissions pathway and strategy and the EU’s Carbon Border Adjustment Mechanism (CBAM). After incorporating the relevant scenarios above, we analyze the impact on the Company from the market, technology, reputation, finance and operation.

Physical risks are estimated with reference to the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP) and the National Disaster Preparedness Technology Center. The average rate of change in the total number of days with a single day of rainfall exceeding 200 mm from 2021 to 2040.

Note: RCPs stand for concentration pathways. In the IPCC’s Fifth Assessment Report, the “Representative Concentration Pathway” (the ROCAL route refers to the change history of concentration) is used to redefine the future change scenarios, and the difference in radiative forcing between 2100 and 1750 is used as an indicator value to distinguish them. The scenario named RCP2.6 means that the radiative forcing per square meter in 2100 will increase by 2.6W, while RCP4.5, RCP6.0, and RCP8.5 represent an increase of 4.5, 6.0 and 8.5W.

RCP 8.5 Situational Assessment Factor Taipei New Taipei Taoyuan
Temperature rises from 2021 to 2040 1.7˚C 1.67˚C 1.63˚C
The average rate of change of the total number of days in a year with a single day rainfall exceeding 200mm 75% 75% 94%
  • Risk and Opportunity Assessment

The financial impact and the likelihood of risks and opportunities are used to determine the degree of risk and opportunity. Score of 1-5 represents low risk/opportunity, 6-14 represents medium risk/opportunity, and 15-25 represents high risk/opportunity. the evaluation results are as follows:

Serial number Category of issue Potential financial impact Risk or opportunity analysis of current situation(Possible impact on the Company) Countermeasure Impact time Risk/Opportunity Grade
1 Transition risk/policy and law Increase in operating cost The government has committed to moving towards the net zero goal in the future, and the electricity mix will increase the proportion of low-carbon and renewable energy. Based on Taiwan Power Company’s estimation, if the proportion of gas and renewable energy is increased in the power generation structure, industrial electricity may face price hikes in the future. Climate change will increase the proportion of environmental management cost year by year. To fulfill Alltek’s environmental sustainability responsibilities, the Operational Support Department promotes energy management and monitoring to effectively improve energy efficiency. Short-term Low risk
2 Physical risk/chronic Increase in operating cost Climate change will affect the average temperature increase in the future. Under the circumstance of increasing heat load, it will lead to increased power consumption of chillers and air conditioners. Alltek promotes energy management and monitoring through the Operational Support Department:

1. Public notices (E-mail/intranet) are made each year to promote the optimal temperature setting (26~28°C) in the office.

2. Audit the storage location environment/temperature/humidity record sheet and industrial dehumidifier equipment maintenance card on a monthly basis to ensure the effective operation of temperature and humidity equipment.

Medium-term Low risk
3 Physical risk/acute Increase in operating cost The precision products related to chip parts and components represented by the Company have certain requirements for controlling the temperature and humidity of chips. If the intensity and frequency of typhoons and rainstorms caused by climate change in the future increase, the anomalies such as moisture damage or damage to the goods during transportation will increase. For the transportation process of high-precision products, the Company requires logistics providers to protect the goods with moisture-proof wrapping if the weather is poor or in rainy seasons to improve the safety of cargo transportation. The Company also continues to track and maintain the safe transportation insurance of the goods regularly to enhance the climate resilience. Short-term Low risk
4 Transition risk/policy and law Increase in operating cost


In response to the “Sustainable Development Roadmap for Listed Companies” and “Regulations Governing Information to be Published in Annual Reports of Public Companies,” the Company is required to commission an external party to assist in the inventory of GHGes and hire a third-party agency to conduct verification. To meet the needs of the competent authority, the GHG inventory of all offices and warehousing locations will be completed in 2026. At the same time, the Company is expected to cultivate talent for low-carbon technology transformation through external course resources and internal book clubs. Short-term Medium risk
5 Opportunity/products and services Increase product revenue In response to market trends, expand the scope of agency and set foot in green high-performance semi-conductor components. Such as: electric vehicles, smart electronic locks, GPS trackers, LED lighting, wireless sensing network of the Internet of Things, etc., will create revenue and gross profit growth, and improve the annual profit performance. Agency and sales of low-carbon products:

1. Actively strive for the agency rights of green component production lines to increase low-carbon product portfolio.

2. Make full use of the supplier’s reputation and trademark awareness to improve the series of low-carbon products and expand the scale of cooperation with suppliers.

3. Continue to pay attention to market demand and low-carbon issues, promote green component product lines to customers, and seek opportunities for customers to develop new products.

Long-term High chance
6 Efficiency of opportunity/resource utilization Reduction of operating costs In response to the global trend of carbon reduction, more efficient distribution processes and transportation modes have been adopted. We continue to consolidate orders and shipments to avoid individual shipments, thereby reducing carbon emissions and lowering operating costs. A warehouse management system (WMS) is used to process consolidated orders and shipments according to the customer and shipping destination. In addition, we provide training to our warehouse management staff to ensure that all staff can handle the integrated orders with the accurate control of the WMS. Short-term High chance

Alltek faces the risks and opportunities brought by climate change, and responds through personnel training, cultivation, transportation management, warehouse management, etc. It is expected that in 2023, the operating expenses will account for approximately 0.28% of the company’s total operating expenses.

Indicators and Targets
Strategy Future Goals Performance in 2023 2024 Work Objectives

Greenhouse gas inventory and verification

Completion of GHG inventory at all offices and warehousing sites in Taiwan by 2026 In 2023, the greenhouse gas inventory work for all offices and storage locations in Taiwan has been completed. The annual greenhouse gas self-assessment of all offices and storage locations in Taiwan has been completed.
Completion of GHG verification for all offices and warehouses in Taiwan by 2028 It is expected to complete the verification plan formulation by the end of December 2025. Monitor the latest regulatory trends to assess the schedule for completing the verification plan formulation.

Agency and sales of low-carbon products

Regularly collect customer information on green product components to secure orders. The business manager visits clients’ senior executives once a month to understand the progress of projects and updates quarterly reports. This year, we have secured opportunities to participate in projects related to energy storage integration and the development of energy-saving products. In response to customer requirements, we provide products that comply with halogen-free or low-halogen specifications for the halogen-free or low-halogen product control project. Furthermore, the Company continues to reduce hazardous substances and reduce or eliminate the use of substances that are harmful to the environment or human body.
Regular evaluation of agency rights for suitable green component production lines 1. Obtained the agency rights for a low-carbon component brand.

2. Collaborated with the business department to continuously promote the adoption of third-generation semiconductors (SiC, GaN) in electric vehicle charging stations and high-power, high-density power supplies for servers.

Deeply cultivate existing product lines to expand the promotion of various application possibilities and capture opportunities for green products at the terminal.

Building of climate resilience

Regularly monitor the rainy season and apply moisture-proof coating on the cargo In cooperation with the transportation carrier, if there is no dedicated pallet or container, to reduce moisture damage during transportation, goods without vacuum packaging will be wrapped in moisture-proof film if the probability of rain on the shipping date reaches 50%. 1. Rainfall Probability Monitoring: Continuously monitor the probability of rainfall at the shipping location and destination. If the probability of rainfall on both sides reaches 50%, immediately perform moisture-proof coating treatment on goods without vacuum packaging.

2. Insurance Coverage: Ensure that goods are sufficiently insured in case of natural disasters, so that they can be compensated reasonably in the event of damage.

3. Flexible Transportation Strategy: Consider adopting a more flexible transportation strategy, such as using shorter transportation segments (direct flights) or multiple modes of transportation to cope with weather changes, ensuring the safe transportation of goods.

4. Partner Selection: Choose transportation and logistics partners with a good track record to reduce transportation risks caused by extreme weather.

Energy management and monitoring

Announce office energy-saving concepts annually. Place reminders of air conditioning temperature settings next to the air conditioning switches in the meeting rooms. Continue to promote energy-saving concepts in the office.
Audit the storage location environment/temperature/humidity record sheet and industrial dehumidifier equipment maintenance card on a monthly basis Monthly conduct warehouse temperature and humidity monitoring equipment check to ensure that the relative temperature in the warehouse is maintained between 20-26°C, and the relative humidity is maintained between 45-65%. Maintain monthly checks to ensure the stability of the warehouse temperature and humidity environment.

Warehousing management training

One “inbound and outbound flow” practical course each year In 2023, an “inbound and outbound process” internship course was arranged to maintain an efficient distribution process and transportation mode. Arrange at least one related internship course.

Cultivation of talent for low-carbon technology transformation

Cultivate four low-carbon technology transformation talent by 2028 Arrange for two personnel to attend the ISO 14064-1 internal auditor training course and obtain an external training certificate. Hold internal training courses to accumulate, disseminate, and share knowledge of low-carbon practices.

Energy Resource Management

Due to the nature of its operations, Alltek Technology does not have manufacturing operations. All statistics are based on the headquarters, offices, and the logistics and warehousing of the Taiwan base. Appropriate control measures are in place to control GHG emissions and water resource management to minimize negative impact on the environment.

Greenhouse Gas Management

To gain a sustainable competitive advantage and earn the trust of stakeholders, Alltek is following the “Sustainable Development Roadmap for Listed and OTC Companies” released by the Financial Supervisory Commission in March 2022. As a company with a paid-in capital exceeding 2 billion NTD, the parent company (i.e., the company) is required to conduct greenhouse gas inventory in the third stage (i.e., complete inventory by 2026 and verification by 2028), in accordance with the reference guidelines and relevant regulations issued by the competent authority, to continuously monitor the completion of the greenhouse gas inventory and verification disclosure schedule. The parent company’s GHG inventory and verification schedule is as follows, which has been submitted to the Board of Directors and is controlled on a quarterly basis.

Projects Expected time for completion or completed
Formulate the inventory plan December 2024
Establish a verification plan December 2025

In the fight against climate change and global warming, GHG inventory has become the basis reduction effectiveness and continuous improvement. Given this, Alltek is in line with the global trend of environmental protection and the development of the overall national GHG reduction strategy to achieve the goal of sustainable development of energy saving and carbon reduction. Although the Company is not listed as a source of GHG that should be inventoried, an independent GHG inventory is carried out based on the operational control to grasp the Company’s GHG emission volume.

With 2021 as the base year, the Group aims to reduce carbon emissions by 1% each year compared to the base year. In 2023, the total greenhouse gas emissions were 245.94 metric tons, a decrease of 3.24% compared to the previous year, and a decrease of 6.68% compared to the baseline year (2021). The goal of reducing carbon emissions by 1% annually since 2022 has been achieved. In the future, we will further implement ISO14064-1:2018 greenhouse gas inventory and obtain third-party verification to expand carbon reduction efforts.

  • GHG Data
Operating locations Year GHG Emissions

Unit: Carbon dioxide emissions equivalent (ton CO2e)

Total turnover (NTD million) Emission intensity
CO2e/NTD million

Office area


2021 142.28 47,134.253 0.00302
2022 143.74 60,428.396 0.00238
2023 138.38 56,018.922 0.00247

Logistics and warehousing


2021 121.26 47,134.253 0.00257
2022 110.43 60,428.396 0.00183
2023 107.56 56,018.922 0.00192

Note 1: The carbon emission factor for electricity is based on the standards published by the Bureau of Energy,Ministry of Economic Affairs. In 2022, it was 0.495 kg CO2e per kWh. The emission factor  for 2023 is based on the calculation standard of the previous year (2022), as the publication date of the standard for 2022 was in late June 2023. Therefore, the calculation standard for 2023 is temporarily based on the year 2022.

Note 2: The scope of the greenhouse gas emissions inventory for office areas includes the company’s headquarters in Taiwan and various branch offices in Taiwan.

Note 3: The scope of the greenhouse gas emissions inventory for warehouse areas includes the logistics warehouses of the company’s locations in Taiwan.

Energy Management

Alltek’s main service is to represent IC component products, and it does not use machinery for production processes. The headquarters is located in an office building, and all energy used is electricity. The company’s energy-saving plan starts with fully implementing daily life-saving electricity measures. In 2023, the total electricity consumption decreased by 2,500 kWh compared to 2022. Energy-saving measures are as follows:

Turn off office lights for one hour during the lunch break to save energy.
The office equipment is set to the power saving mode.

For long periods of non-use of electrical appliances or computer information equipment, we instruct our employees to turn off the power of the mainframe and peripheral equipment at the end of the day to reduce the waste of standby power.

  • Electricity Consumption in the Past Two Years

Operating locations

2022 2023
Electricity Electricity
kWh GJ kWh GJ

Office area


1,016.636 279,562 1,006.423

Logistics and warehousing

216,957 781.045 217,294 782.258


499,356 1,797.682 496,856 1,788,682

Note 1: The inventory of GHG emissions from office areas covers the Company’s Taiwan headquarters and offices in Taiwan.

Note 2: The inventory of GHG emissions in warehousing covers the Company’s logistics and warehousing in Taiwan.

Note 3: The energy calorific value conversion information is based on the “Unit calorific value table for energy products” of the Bureau of Energy, Ministry of Economic Affairs. Purchased electricity 1kWh = 860 Kcal; 1 Kcal = 4.1868E-6 GJ

Water Resource Management

Water is an indispensable resource in life. In the face of challenges related to water resources,we use the Water Risk Assessment Tool (Water Aqueduct) developed by the World Resources Institute (WRI) to identify the water resource pressure in the areas where Alltek operates. These areas are assessed to be at low to medium risk. However, due to the uneven spatial and temporal distribution of rainfall in Taiwan, each enterprise should make an effort to manage water resources. The Company’s water is mainly used by its employees in the office area. We continue to promote the concept of water conservation to employees and cherish all hard-won resources.

With 2021 as the base year, the Company aims to reduce water consumption by 1% each year compared to the base year. The water usage in 2023 was 1,269 cubic meters, a decrease of 13.61% from the previous year (2022) and a decrease of 15.63% from the baseline year (2021).

This achievement aligns with the goal of reducing water usage by 1% annually since 2021. In terms of water reduction, the Company will continue to promote the improvement of overall water use efficiency and promote water conservation information to employees.

  • Water Consumption in the Past Two Years

                                                                                                   Unit: cubic meters

Type of water source 2021 2022 2023
Tap water consumption 1,504 1,469 1,269

Note 1: Except for the headquarters, water fees for all other offices and logistics warehouses in Taiwan are managed by the building management committee and are not separately billed to the company monthly.Therefore, the scope of water consumption inventory only covers the Company’s headquarters in Taiwan.

Note 2: The water source is all third-party water and is freshwater, not from water-stressed areas.