Note:
1.Physical risks: Immediate and long-term physical risks (e.g., flooding, drought, extreme temperature events, soil acidification/liquefaction)
2.Transition risks: Risks arising from policy, regulatory, market, and technological changes related to climate and nature (e.g., stricter regulations, increasing customer requirements, technology obsolescence, reputational risks)
3.Systemic risks: Structural risks caused by ecosystem degradation or imbalance (e.g., increasing water stress, declining ecosystem regulatory functions, regional supply chain disruptions)
4.Corporate performance: Impacts on business operations, markets, resource efficiency, products, financing, and reputation
5.Sustainability performance: Positive and negative impacts of business activities on the sustainability of natural resources and ecosystem protection, restoration, and regeneration (e.g., resource substitution, circular utilization, ecosystem support)
To address the uncertainty associated with climate- and nature-related issues, Chicony Power conducts scenario analysis to assess how potential risks and opportunities may affect business operations and strategic resilience under different future conditions. The results are incorporated into the Company’s overall strategic planning.
With reference to the TNFD recommendations, Chicony Power selected four scenarios for analysis: “Ahead of the Game,” “Go Fast or Go Home,” “Sand in the Gears,” and “Back of the List.” The analysis focuses on key variables including physical risks, such as the loss of ecosystem services, and transition risks, such as market-driven changes.
Following internal discussions, “Ahead of the Game” was identified as the primary scenario for strategic planning. The Company also considers the possibility of moving toward the “Sand in the Gears” scenario under more conservative macroeconomic and policy conditions. Based on these scenarios, Chicony Power evaluates how identified risks and opportunities could affect its operations under different future pathways.
Under the “Ahead of the Game” scenario, products increasingly rely on materials with lower resource intensity while reducing dependence on traditional fossil fuels. Greater harmonization of product standards also helps reduce reliance on resources from specific regions. Markets for products and services continue to shift toward more environmentally friendly solutions, with consumers showing greater willingness to pay for environmental value. At the same time, declining learning costs for green technologies enhance the competitiveness of green products. However, the market transition may increase the scarcity of certain natural resources and lead to greater price volatility. As GDP per capita rises, stronger purchasing power may further drive consumption growth. Supply chains are also expected to reduce their dependence on resources from any single region by diversifying sourcing and production networks to support access to new markets. Meanwhile, regions are expected to introduce stricter regulatory policies and strengthen infrastructure to enhance resilience to nature-related risks.
Under the “Sand in the Gears” scenario, production places greater emphasis on output, while the use of recycled materials receives relatively less attention. Trade barriers are introduced across regions, increasing domestic self-sufficiency in products. In the products and services market, higher prices for imported goods resulting from trade barriers drive the expansion of local markets, which in turn increases the extraction and use of local resources. At the same time, trade restrictions lead supply chains to shift toward more domestically concentrated production models, increasing both the scale and concentration of national production systems. However, regions face more severe physical risk impacts, contributing to continued environmental degradation and a decline in the availability of ecosystem services.
To effectively manage the climate- and nature-related risks and opportunities that may arise from its operations, Chicony Power follows its Climate Change and Natural Environment Risk Management Policy. Risk scores are calculated based on the product of likelihood and impact and assessed through a risk matrix. This year, six issues exceeding the materiality threshold were identified, comprising three significant risks and three significant opportunities.
* Short Term 2025-2026 年、Medium Term 2027-2030 年、Long Term 2031-2050 年。
In response to the global action agenda set out in the Kunming–Montreal Global Biodiversity Framework (GBF), Chicony Power follows the TNFD LEAP approach to progressively assess its value chain dependencies and impacts on nature, strengthening its capabilities in risk identification and disclosure.
Guided by its Biodiversity and No Deforestation Policy, Chicony Power incorporates the mitigation hierarchy into its management processes to reduce the ecological impacts of value chain activities. The Company is committed to progressing steadily toward its vision of achieving No Net Loss and ultimately a Net Positive Impact on biodiversity.
These impacts may arise not only from the Company’s own operations but also indirectly across upstream and downstream activities in the value chain, including raw material sourcing, manufacturing, transportation, product use, and recycling. Such activities may place pressure on ecosystems through the degradation of ecosystem functions, habitat loss, increased water-related risks, and biodiversity loss.
These highly interconnected relationships may expose companies to both nature-related risks and potential opportunities throughout their operations.
Chicony Power has established its greenhouse gas (GHG) inventory system in accordance with ISO 14064-1:2018 and the Greenhouse Gas Protocol (GHG Protocol). Annual internal audits and verification by independent and credible third-party verification bodies are conducted to ensure the accuracy of GHG inventory data and the credibility of disclosures, with relevant results disclosed regularly to the public.
Since 2017, Chicony Power has progressively expanded the organizational boundary and management scope of its GHG inventory. In 2024, using the operational control approach, the Company completed GHG inventories and external verification in accordance with ISO 14064-1 for 100% of operating sites within the scope of its consolidated financial statements, further aligning its practices with international sustainability disclosure and climate governance requirements.
2025 Greenhouse Gas Emissions
Category 1 & 2 Emissions
Category 3 - Category 6 Other Indirect Greenhouse Gas Emissions
SBTi Targets and Decarbonisation Progress
Chicony Power uses 2020 as its base year and has set 2030 as an interim emissions reduction target year under the SBTi-approved 1.5°C pathway. According to the latest performance results, by 2025, the Company’s absolute Scope 1 and Scope 2 GHG emissions had decreased by 47.5% from the base year, while emissions intensity had decreased by 49.7%. This represents substantial progress toward the 2030 reduction targets of a 42% absolute reduction and a 56.8% reduction in emissions intensity. The Company’s decarbonization progress demonstrates the effectiveness and implementation strength of its low-carbon transition pathway.
For Scope 3 emissions from the use of sold products, emissions in 2025 decreased by 66.4% from the base year, while emissions intensity decreased by 66.0%, significantly outperforming the 2030 targets of a 25% absolute reduction and a 44.2% reduction in emissions intensity. Chicony Power has therefore achieved its 2030 interim SBT target for this category ahead of schedule. The Company continues to maintain its decarbonization momentum through energy efficiency improvements, increased use of renewable energy, and product decarbonization strategies, laying a solid foundation for achieving net-zero emissions by 2050.
In 2025, Chicony Power’s total energy consumption was 303,812.24 GJ, representing a slight decrease from 306,480.62 GJ in 2024. In terms of the energy mix, renewable electricity consumption increased to 46,844 MWh (168,638.40 GJ), while non-renewable electricity consumption decreased from 40,142.09 MWh to 35,740.22 MWh, reflecting the Company’s continued transition toward a lower-carbon electricity mix.
Energy consumption intensity was 8.82 GJ per NT$ million of revenue, up 7% from 8.24 GJ per NT$ million in 2024, primarily due to a decrease in the Company’s consolidated revenue.
Going forward, Chicony Power will continue to strengthen energy efficiency improvements and optimize energy allocation through its ISO 50001 energy management system and Energy Performance Indicators (EnPIs). These efforts aim to progressively decouple energy consumption from business growth and provide consistent support for the Company’s decarbonization pathway.
Chicony Power’s parent company joined RE100 in 2023, committing to achieve 100% renewable electricity use by 2030. Chicony Power has incorporated this target into its environmental and climate governance framework and continues to expand renewable electricity use across its operations.
Through power purchase agreements (PPAs), on-site solar generation, and renewable energy certificates (RECs), the share of renewable electricity increased from 0.50% in 2021 to 56.72% in 2025. Excluding RECs, renewable electricity accounted for 42.42% in 2025, while the share of non-renewable electricity declined from 100% in 2020 to 43.28%.
In 2025, Chicony Power achieved energy savings of 16,261.41 MWh. Energy-saving initiatives have progressed from basic equipment replacement to optimization of energy-intensive processes and utility systems.
Key measures include improving aging production equipment, enhancing energy recovery, increasing cooling system efficiency, and optimizing power quality and energy allocation. These initiatives reduced annual emissions by 9,200.74 tCO2e, an increase of 191.16% compared with 3,160 tCO2e in 2024.
Chicony Power will continue to expand its carbon reduction efforts and improve energy efficiency.
Following the TNFD framework, Chicony Power uses the WRI Aqueduct tool to assess water risks across its operating sites and top 50 suppliers. The assessment identified Suzhou and Thailand, representing 43% of operating sites, as being located in high water-stress areas. Under the SSP5-8.5 scenario, water withdrawals at these two sites account for only 0.0044% and 0.0004% of total basin water use, respectively. Approximately 40% of the top 50 suppliers are located in areas of high or extremely high water stress.
Although current withdrawals represent only a very small share of basin water use, climate change may affect future water availability. Chicony Power therefore continues to strengthen water management through water-saving measures, recycling and reuse, process optimization, and contingency planning for potential supply disruptions
Chicony Power’s water use is primarily for employee domestic needs and facility operations, particularly air-conditioning systems. The Company continues to implement water-saving measures in accordance with its Water Resources Management Policy.
Domestic wastewater is properly treated or discharged into municipal sewer systems in compliance with local environmental regulations. In 2025, no operating site received any fines or penalties related to improper water use or non-compliant wastewater discharge, demonstrating effective water management and regulatory compliance.
Water Withdrawal, Consumption and Discharge
Using 2020 as the base year, with a water withdrawal intensity of 22.18, Chicony Power targets a 3% annual reduction and a 30% reduction by 2030, equivalent to a target intensity of 15.53. By 2025, water withdrawal intensity had declined to 16.26, approximately 26.7% below the base year. Key measures include condensate and rainwater recovery for landscaping, road cleaning, and cooling tower make-up water, as well as the adoption of water-saving faucets and efficient water supply equipment. These initiatives are expected to save approximately 27,000 m³ of water annually. Overall, water withdrawal intensity remains well below the 2020 level and continues to progress toward the 2030 reduction target.
UL 2799 Validation and Waste Diversion
In 2025, all major production sites completed UL 2799 certification and achieved a 100% waste diversion rate. This means that waste generated at these sites was managed through recycling, reuse, energy recovery, or other resource recovery methods, with no waste sent to final landfill.
Under its ISO 14001:2015 environmental management system, Chicony Power regularly monitors and reports waste generation and sets waste reduction targets. Waste from the headquarters and operating sites is managed in accordance with applicable local environmental regulations.
Waste generated at Chicony Power’s Taipei headquarters is managed with support from Chicony Electronics’ Taipei headquarters. Waste generation and treatment methods at other operating sites from 2021 to 2025 are disclosed below.
Waste Prevention and Resource Recovery
In 2025, Chicony Power redefined its waste performance metrics and established waste intensity as the new baseline indicator, with 2025 serving as the base year for waste reduction. From 2026 to 2030, the Company aims to reduce waste intensity by 3% annually compared with the previous year through improved production efficiency, process optimization, lean material management, and enhanced recycling and reuse.
