Environmental Sustainability
Task Force on Climate-Related Financial Disclosures (TCFD)
From the Paris Agreement to the Taiwan’s Climate Change Response Act, it is evident that there is an increasing concern, both domestically and internationally, regarding the impacts of global climate change and extreme weather events. Therefore, OSE has referenced recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD), published by the international Financial Stability Board (FSB). By following the disclosure frameworks of “Governance,” “Strategy,” “Risk Management,” “Metrics and Targets,” we aim to strengthen our ability to identify and respond to climate risks and opportunities, develop corresponding governance strategies, and enhance management.
Assessing Climate Change Risks and Opportunities
Of the many climate-relate risks and opportunities, we first compiled a list of overlapping risks and opportunities featured in international research and industry partners both domestic and foreign. Considering the climate-related topics that are of concern to the industry at large, we then filtered the list for risks and opportunities specific to OSE.
Then we conducted materiality analysis for each topic to assess the potential scope of impact on OSE (including finances, operations, reputation and image, and other metrics), as well as the duration of impact (short-, mid-, or long-term). Conduct materiality analysis via results of internal assessment to define overall material risks and opportunities to serve as the basis for further evaluation and management.
Key Climate Risks Identification and Response Strategies
Key Climate Opportunities Identificator and Response Strategies
Greenhouse Gas Management
We will continue investing in energy-saving and carbon-reducing programs, expanding the scope of GHG inventories, and improving our carbon management capability. Since 2016, OSE has conducted greenhouse gas emission inventory and third-party verification with the standard of ISO 14064-1 (including 2014 and 2018 standard). Recent third-party verification certificates are as attached. OSE Certificate
Due to the production capacity of 2023 has been increased due to increased orders, the total emissions of OSE Category 1 and Category 2 are 84,403.02 metric tons of CO 2 e, of which Scope 2 emissions account for
99.3%. Due to the revenue growth and various energy-saving measures were taken, the emission intensity in 2023 was 5.1 tons CO 2 e / million NT dollars, a decrease compared with 2022.
In 2023, OSE invested in 7 energy-saving and carbon-reduction projects, promoting awareness of greenhouse gas emissions and daily energy conservation within the factory, and continuing to improve OSE’s carbon management capabilities.
Energy Management
To enhance our energy management capability, the headquarter building and our assembly and testing building passed the external certification of ISO 50001:2018 energy management system in 2022. We expect such mechanism to expand gradually in the future.
Due to the increase of production capacity in 2023, the electricity usage has increased by 1.83% compared with 2022, but with the increase in revenue and the decrease in gasoline and diesel consumption, the total energy intensity has decreased compared with 2022.
image change, OSE plans to install solar power generation equipment. From 2023, the consumption of self-generating solar power was account for 1% of the total electricity consumption, and the proportion of renewable energy use is expected to gradually expand in the future.
Note: Energy intensity calculation is based on usage data of all types of energy used internally by OSE, including electricity, gasoline, and diesel.
GHG Reduction Initiatives and Results
To reduce the impact on the environment from our operational activities, OSE has been actively promoting sustainability action plans throughout our factories. Since 2020, we have implemented phased programs to reduce carbon emissions and increase energy efficiency every year, including reducing the operating hours of oversupplied shared equipment, replacing old equipment, and substituting with LED lighting solutions. Through these programs, we managed to reduce about 6,863,037 kWh of power, which is equivalent to 3,493.29 tons of CO2e. We hope to gradually increase energy efficiency, starting from perfecting our environment and energy management system.
By the end of 2022, NT$49,330 thousand has been invested in energy saving projects.
In 2023, OSE promoted 7 energy saving and carbon emission reducing projects, with an investment of approximately NT$32,260 thousand, estimating to reduce electricity consumption by approximately 3.95 million kw/hr., and about 1,950 tons of emission of CO2e.
