Climate Change Management

Climate Change Management

Guided by its commitment to sustainable development, Acter actively advances climate action through concrete strategies to address the challenges posed by climate change. In alignment with the Task Force on Climate-related Financial Disclosures (TCFD) framework and IFRS Sustainability Disclosure Standard S2 – Climate-related Disclosures (IFRS S2), Acter conducts comprehensive assessments of climate-related risks and opportunities and establishes phased climate action milestones to ensure an effective response to evolving external conditions throughout the low-carbon transition. Going forward, Acter will continue to strengthen its climate governance framework, advance green engineering technologies, and collaborate closely with its supply chain partners and stakeholders to drive long-term corporate sustainability.

Core Elements and Management Practices of TCFD

Acter regards climate governance as a core issue of sustainable development and annually adopts the framework of the Task Force on Climate-related Financial Disclosures (TCFD) to identify clima
te-related risks and opportunities. To strengthen climate governance, the Board of Directors serves as the highest supervisory body, overseeing overall climate strategy and monitoring management’s execution of climate-related risk management and key performance indicators. A Sustainability and Nomination Committee, composed of independent directors as members and supported by the General Administration Office as the executive secretariat, is established under the Board. The committee is responsible for evaluating and analyzing various risk scenarios, including climate-related risks, and convenes at least twice a year to review implementation outcomes. The committee also advances sustainability-related initiatives in alignment with strategic goals and develops both mitigation and adaptation strategies in response to climate challenges.

Core elements Management Strategies and Actions
Governance Disclose how an organization manages climate-related risks and opportunities. - Corporate Sustainability Committee
Already reported climate risks and related response measures, as well as the schedule and progress of GHG inventory disclosure, to the Board of Directors in November 2025. The Board is expected to provide guidelines to ensure compliance with our sustainable development strategies.
- Corporate Sustainability Committee
Serving as Acter’s highest authority responsible for climate change management, the Committee is chaired by the chairman and supervised by the General Administration Division as the executive secretary. It reviews the Company’s climate change strategy and goals on a quarterly basis. In 2024, the Committee held 4 meetings.
- Sustainable Operations Team
The commissioner, who is served by the deputy general director of the operations division of the engineering unit, promotes sustainability projects in accordance with the strategies and objectives.
Strategy Disclose existing and potential climate-related risks and their potential impact on the organization’s financial planning.
- 15 Climate-Related Risks and 10 Climate-Related Opportunities
ased on the occurrence rate and impact level of climate issues, 
- Evaluate their operational and financial impacts from the aspect of value chain, and conduct response measures according.
   ( 1 ) Risk Opportunity Strategy: Developing the green engineering market, and linking climate actions to organizational goals. 
   ( 2 ) Risk Opportunity Financial Impact: Regularly update financial impacts and understand impact outcomes.
Risk management Disclose the procedures for an organization to examine, assess, and manage climate-related risks. - Identification Procedures: Establish a risk issue taskforce to carry out identification work and report related risk and opportunity issues to the Corporate Sustainability Committee. This will facilitate the formulation of management approaches, review of implementation status, and development of future plans, continuously improving risk management approaches and effectiveness.
- Management Procedures: Establish PDCA management to clarify responsible units and conduct regular reviews.
Indicators and goals Disclose important indicators and goals that the organization uses to assess and manage climate-related risks. - Target Setting: Establish net-zero targets for 2050 to enhance climate resilience and continually reduce climate impact risks.
- Target Review: Quantify target management to build an ecosystem within the value chain.
- Management of Carbon Emissions: Conduct GHG inventory according to ISO 14064 and complete external certification accordingly. Please refer to the "GHG Management" section.


Identification of Climate Risk Response Measures and Opportunities


 
To strengthen Acter’s operational resilience against the impacts of extreme climate events and the transition to net zero, Acter has established a systematic identification process to evaluate the overall impacts of climate-related risks and opportunities on its operations. The assessment is based on two key dimensions—impact severity and likelihood of occurrence—through which climate-related issues are prioritized according to their materiality. The results are consolidated into Acter’s Climate Materiality Matrix, serving as a core reference for the ongoing refinement of the Company’s climate action strategies. In addition, Acter integrates the time horizon of occurrence (short-, medium-, and long-term), the likelihood of occurrence, and the magnitude of potential financial impacts into its evaluation framework, closely aligning the assessment outcomes with strategic decision-making processes while proactively identifying green growth opportunities arising from climate-related risks.

Greenhouse Gas Management

GHG Inventory

Since 2017, Acter has conducted annual internal inventories of greenhouse gas (GHG) emissions from its headquarters and various operational sites in accordance with the relevant requirements of the GHG Protocol Corporate Accounting and Reporting Standard. Acter has also engaged third-party verification bodies accredited by the Taiwan Environmental Protection Administration to conduct greenhouse gas emissions verification and obtain GHG verification statements. Through continuous review and analysis of historical emissions data, the Company identifies key emission sources and emission trends, which serve as critical references for establishing management indicators and implementing carbon reduction initiatives.

In 2025, Acter’s Scope 1 direct greenhouse gas emissions amounted to 69.4034 metric tons of CO₂e, accounting for 11.54% of the Company’s total greenhouse gas emissions. Scope 2 indirect greenhouse gas emissions totaled 104.1706 metric tons of CO₂e, representing 17.32% of total emissions. Other indirect greenhouse gas emissions amounted to 427.8254 metric tons of CO₂e, accounting for 71.14% of the Company’s total greenhouse gas emissions.
＞Click to verify the certificate