Compal Electronics is committed to realizing the net zero target of Business Ambition for 1.5°C. Official verification from the Science Based Targets Initiative (SBTi) demonstrated Compal’s determination to develop carbon reduction plans based on climate science. The approval represents a major step forward in carbon reduction action and sustainable development.
The latest net zero targets encompasses Compal and all subsidiaries in its consolidated report, increasing the difficulty of implementation. Nevertheless, it also embodies Compal’s readiness take on the global climate change and its responsibilities. Compal promises to stay in alignment with the global temperature-control target of 1.5°C and net zero emissions. The Company will engage in proactive climate action and become a member of the “Race to Zero" campaign launched by the United Nations Framework Convention on Climate Change (UNFCCC).
Carbon Reduction Targets and Concrete Measures
Carbon reduction targets are to be set using scientific methodology with 2019 as the base year for Scope 1 and 2:
- Short-term target: Reduce emissions by 4.48% compared to previous year.
- Medium-term target: 50.68% reduction in emissions by 2030.
- Long-term target: 90% reduction in emissions by 2050.
Throughout this process, Compal will actively adjust and restructure its electricity usage, and gradually increase the energy efficiency standards for each asset. The Kinpo Group Headquarters now under construction will not only obtain Taiwan Green Building Label Gold certification and Taiwan Intelligent Building Gold certification, but also become the first large-scale development in Taiwan to obtain “Building Energy-Efficiency Rating System (BERS) - Level 1!”
Collaborations with affiliates are planned as well to expand the purchase and use of green electricity in order to continue reducing the carbon footprint of the Group as a whole and contribute to global environmental protection.
Scope 3 Challenges and Initiatives
Scope 3 carbon emissions include material indirect emissions at various stages in the supply chain such as product purchasing, use, and disposal, and is one of the key challenges now facing Compal. The following targets have been set by Compal with 2021 as the base year:
- Medium-term target: 25% reduction in emissions by 2030.
- Long-term target: 90% reduction in emissions by 2050
Compal plans to work closely with its value chain to realize these targets by promoting the development of low-carbon materials and introducing alternative recycled materials. Energy demand during usage is to be reduced through research and development to promote low-carbon transition. Sustainability action will also be taken. At the same time, Compal will strengthen its management of climate change risks and strive to reduce Scope 3 carbon emissions.
Alignment with International Standards
Chief Sustainability Officer and Executive Vice President Eric Peng stated: “Compal has now reduced our carbon emissions by 58.8% at the entity level. An immense challenge remains due to a consolidated financial reporting boundary that encompasses more than one hundred subsidiaries. Nevertheless, Compal is communicating with our subsidiaries one by one to enhance their inventory capabilities but also boost their carbon-reduction willingness and ability so that we can face the challenge of climate change together.”
The carbon reduction commitment of Compal not only conforms to the scientific standards of SBTi but is also aligned with international best practice. Compal first began conducting and verifying organizational GHG inventories in 2019. A full carbon inventory for Scope 1, 2 and 3 were completed in conjunction with subsidiaries in 2021. The progressive introduction of third-party emissions certification is also planned. Compal is sharing these experiences with subsidiaries and suppliers as well to build a solid basis for the reduction targets.
Prospects
The latest SBTi approval represents a key milestone on the path to sustainability. Compal will continue to implement different carbon reduction proposals in accordance with the science-based reduction pathway to ensure a steady and sustained decrease in its carbon emissions. GHG reduction plans and measures that encompass Scope 1, 2 and 3 will continued to be incorporated into the Company’s internal operations and value chains. The neutralization of residual emissions through carbon credits will also be assessed so that the ultimate goals of realizing RE100 and Net Zero by 2050 can progressively realized.
Through constant effort and innovation, Compal will strive to reach new heights on the path to sustainability, and work with global partners to promote green transition and a better future.