Climate Risks, Opportunities and TCFD | ACER ESG
Climate Risks, Opportunities and TCFD
Since 2020, Acer has officially implemented the Recommendations of the Task Force on Climate-related Financial Disclosures issued by the Financial Stability Board of the United Nations to analyze the current status of climate-change-related financial disclosures, identify and quantify climate risks, and publicly disclose the potential financial impact of climate change on Acer and its future response strategies.
Optimized the TCFD management
To strengthen risk management functions and achieve the company's sustainable development goals, Acer's Board of Directors acknowledged that risk management and sustainable development are inherently two sides of the same coin. In 2024, the Board resolved to transform the existing "Risk Management Committee (RMC)" to the "Risk Management and Sustainable Development Committee RMSDC." This change assigns the committee with responsibilities related to sustainable development, thus enhancing the company's sustainable governance.
Additionally, we established a cross-departmental IFRS Sustainability Disclosure Standards project team to initiate the first phase of the IFRS S2 implementation. This ensures that information on climate-related risks and opportunities disclosed in this TCFD report can more effectively serve as reference for decision-making by general-purpose financial report users.
For detail, please see our CDP Climate Change Questionnaire , and Acer TCFD report.
Governance
The Board of Directors is the highest governance body of the company and is also the highest decision-making authority for climaterelated risk management and opportunity development issues. It approves major decisions on relevant issues according to business strategies and environmental changes. To realize the vision of corporate sustainable development and strengthen the establishment of a risk-aware corporate culture, the Board of Directors, in accordance with the Articles of Incorporation, has established the Risk Management and Sustainable Development Committee as a functional committee to implement the Board's resolutions regarding risk management and other authorized matters, and to ensure that the company has fully considered the impact of climate-related risks and opportunities in the process of formulating major decisions.
The Risk Management and Sustainable Development Committee is the highest authority responsible for risk management and opportunity development in the company, reporting to the Board of Directors and submitting proposals to the Board for resolution. The committee comprises several subordinate units, including the Risk Management Executive Committee and its working groups, the Corporate Sustainability Committee and its working groups, the Information Security Governance Committee and its working groups, as well as other task forces established in response to legal requirements or relevant circumstances, to assist the Risk Management and Sustainable Development Committee in implementing various initiatives.
At the operational level , we incorporates climate change-related risks into its risk management policy and procedures. This is approved and directed by the Acer Risk Management Executive Committee, which oversees the risk environment, risk management priorities, assessment results, and countermeasures. The committee also supervises the continuous improvement to risk management to enhance performance. Comprised of top officers from various business units and functional organizations at the headquarters, with the chief internal auditor serving as an observer, the committee manages various risk dimensions, including strategic risk, operational risk, financial risk, disaster risk, and climate change. The committee reports quarterly to the Board of Directors/ Risk Management and Sustainable Development Committee.
On the management part, Acer's climate-related issues are led by the Chief Sustainability Officer (CSO), who is responsible for collecting and analyzing climate risk and opportunity information for the Acer Group. This includes identifying the company's operational dependencies and environmental impacts and the resulting risks and opportunities, as well as managing the establishment and implementation of the company's short, medium, and long-term climate-related risk and opportunity goals, formulating the company's sustainable development and climate transition strategies, promoting and implementing these strategies, and shouldering the company's mission of external communications on climate issues. The CSO regularly reports to the Risk Management Executive Committee on climate-related trends, impacts, and implementation performance, and coordinates important cross-departmental sustainability issues to strengthen the effectiveness of various climate-related risk management implementations.
Strategy
Acer incorporates the potential impacts of climate change into the overall operational considerations, assessing the potential impact duration and areas of risks and opportunities. It evaluates the potential effects and impacts on the responsible business units when climate-related transition risks and physical risks occur, based on the principle of materiality. The task force then formulates climate risk prevention and mitigation actions to address identified material climate issues with specific action plans.
According to the latest identification results, in terms of climate risks, the regulatory policy actions taken by governments in response to climate change impacts and their rapid policy changes have become Acer's greatest potential risks. These include the increase in sustainability-related requirements and regulations, rising greenhouse gas emission costs, and regulations on existing products and services, all of which represent high-level risks. Additionally, influenced by the global net-zero emission trend, governments worldwide are promoting green economy policies, and the development of green energy requires substantial investment, potentially driving up energy prices and exacerbating existing inflationary pressures. This could lead to price increases, reduced product competitiveness, decreased purchasing power among consumers, and consequently, risks of green inflation. Regarding physical risks, rising average temperatures are still considered highly probable, and the positive correlation between Acer's facility electricity consumption and temperature changes may result in increased electricity usage and costs, making this a physical risk item of concern for the company.
In our scenario analysis, we refer to climate scenarios published by international organizations, including the Intergovernmental Panel on Climate Change (IPCC)’s RCP 2.6 and RCP 8.5, the International Energy Agency (IEA)’s Net Zero Emissions by 2050 Scenario (NZE 2050), as well as Nationally Determined Contributions (NDCs) such as Taiwan’s, as part of our impact assessments.
Major Cimate Risk Matrix
Climate Risks, Opportunities and Our Response Measures
Risk Name / Explanation of Impact
Regulation and Policy
Increased Costs of Greenhouse Gas Emissions / Medium-term Risk
Medium-term Risk
Risk Name / Explanation of Impact
Trends in carbon valuation are gradually becoming clear (such as carbon taxes and carbon fees). The European Union Carbon Border Adjustment Mechanism (CBAM) is officially implemented in 2026. Taiwan's Climate Change Response Act will be officially implemented in 2025. Enterprises with annual greenhouse gas emissions exceeding 25,000 metric tons will be required to pay a carbon fee.
Response Measures/Identified Opportunities
Acer shoulders the mission of being a leading brand and promises to achieve net zero emissions by 2050, increase the share of renewables in energy consumption to 100% by 2035 and set Science Based Targets (SBT) aligned with the 1.5°C carbon reduction pathway. By 2030, Acer aims to reduce carbon emissions by 50% in organizational operations compared to 2019, and reduce the value chain emissions by 35% compared to 2020. In addition, by 2025, the Acer personal computer product average energy consumption will be reduced by 45% compared to 2016 and the computer and displays product will reach to 20-30% post-consumer recycled plastic material content.
Increased Demand for and Regulations Related to Sustainability / Medium-term Risk
Medium-term Risk
Risk Name / Explanation of Impact
Emerging sustainable product design specifications such as the Ecodesign for Sustainable Products Regulation, climate disclosure requirements (e.g. Taiwan listed company sustainability roadmap, EU Corporate Sustainability Reporting Directive), and renewable energy or environment-related regulations and policies may lead to increased operating costs for companies due to compliance with relevant regulations.
Response Measures/Identified Opportunities
Acer Corporate Sustainability Committee (CSC), chaired by the Chairman and CEO, with the ESG Office serving as the Executive Secretary. The Corporate Sustainability Committee establishes working groups on corporate governance, risk management, innovation and product lifecycle, environmental management, and supply chain management. These groups address significant sustainability issues across departments, facilitating communication, coordination, and planning for important issues. They also execute and monitor action projects to track progress and effectiveness.
Regulations and Impact on Existing Products and Services / Short-term Risk
Short-term Risk
Risk Name / Explanation of Impact
Additional requirements from environmental laws, energy labels (e.g. Energy Star, EPEAT, TCO, etc.), life cycle assessments, and product carbon footprint reports worldwide may increase our operational costs in order to meet market demands.
Response Measures/Identified Opportunities
In response to the global low-carbon trend, Acer, as a leading brand, is dedicated to offering consumers more sustainable and eco-friendly products, enhancing product competitiveness, and meeting customer demands.
As EPEAT and TCO Certified , Acer continues to track and collaborate with ODMs, evaluating and responding to new standards early to ensure that we have sufficient time to smoothly introduce changes to our products. In 2024, 16.3% of our products are EPEAT registered, and 15.8% of our products are TCO Certified.
Market
Increased Raw Materials Costs / Medium-term Risk
Medium-term Risk
Risk Name / Explanation of Impact
Increased demand for renewable energy facilities/equipment, low-carbon circular materials (such as PCRs) due to climate change may result in increased productions costs, affecting the price of profitable products and potentially impacting revenues.
Response Measures/Identified Opportunities
Acer strive to establish a more comprehensive circular economy model and actively uses post-consumer recycled plastic in its products In 2024, 18.6% of post-consumer recycled plastic were used in our computer and monitor products. Over the period of 2020 to 2024, we have incorporated post-consumer recycled plastic into more than 50 million units of our computer and monitor products.
In addition, we place significant emphasis on addressing the problem of marine plastic debris. We make use of recycled ocean-bound plastic and convert it into recyclable materials. The OBP is used in the production of OceanGlass touch panels for notebook computers and bags. By adopting post-consumer recycled plastic and OBP, our objective is to minimize the improper disposal of plastic waste and raise consumer awareness of environmental issues.
Technological
Costs of Low Carbon Technology Transition / Short-term Risk
Short-term Risk
Risk Name / Explanation of Impact
The electronics industry chain faces technical challenges in low-carbon transition, from the development and use of low-carbon materials and optimization of system energy efficiency, to the development of electric and hydrogen energy, carbon-negative technologies, and so on. International brands will also require their suppliers to invest more in addition to the cost of their own low-carbon transition, resulting in increased capital capital due through low-carbon technology R&D.
Response Measures/Identified Opportunities
Acer strive to establish a more comprehensive circular economy model and actively uses post-consumer recycled plastic in its products. In 2024, 18.6% of post-consumer recycled plastic were used in our computer and monitor products. Over the period of 2020 to 2024, we have incorporated post-consumer recycled plastic into more than 50 million units of our computer and monitor products.
In addition, we place significant emphasis on addressing the problem of marine plastic debris. We make use of recycled ocean-bound plastic and convert it into recyclable materials. The OBP is used in the production of OceanGlass touch panels for notebook computers and bags. By adopting post-consumer recycled plastic and OBP, our objective is to minimize the improper disposal of plastic waste and raise consumer awareness of environmental issues.
Failed Investments in New Technologies / Long-term Risk
Long-term Risk
Risk Name / Explanation of Impact
The deployment of emerging technologies in which Acer currently or may in the future invest, such as IoT and AI or low-carbon solutions (including carbon capture and storage, biofuels, or energy management systems) may result in capital expenditure losses if these technologies fail to be successfully commercialized, face delays during implementation, perform inefficiently, or are not well accepted by the market. These challenges could lead to underutilized assets and reduced operational efficiency.
Response Measures/Identified Opportunities
Continuous innovation is a core value for Acer, as through it, we can gain a competitive edge. Our patent strategy is to invest resources in continuous innovative R&D, building a patent network and demonstrate the benefits of our patents while also establishing a set of strict patent measures to protect our R&D achievements. In 2024, Acer's patent applications primarily focused on several key technological domains including artificial intelligence (AI), AI PCs, wireless communications, thermal management, audio processing devices, antenna systems, and power management. As of December 2024, Acer has secured 6,761 valid patents worldwide, with over 2,622 patents in Taiwan and over 1,510 patents in the United States.
Physical Risk
Long-term
Rising Average Temperatures / Long-term
Long-term Risk
Risk Name / Explanation of Impact
The World Meteorological Organization (WMO) has confirmed that 2024 as warmest year on record at about 1.55°C above pre-industrial level. According to the IPCC’s AR6 report, global warming has led to an inevitable rise in temperature by 1.5°C between 2021 and 2040. The average temperature rise will lead to a significant increase in air conditioning system power consumption at Acer's cloud server rooms, offices, and supply chain product assembly sites, not only consuming more power, but also leading to increased carbon emissions. In addition, Acer's product assembly plants may be affected by higher demand, unstable electricity infrastructure, insufficient backup capacity, local government power limiting measures, or large-scale power outages, resulting in adverse impacts on product shipment and finances.
Response Measures/Identified Opportunities
We continue to implement the energy efficiency program including (1) implementing energy-saving projects, (2) Setting the RE100 goal by 2035, (3) Establishing our solar PV power generators, and (4) Investing in renewable energy development, and exploring the feasibility of new power-saving measures. In 2024, we implemented multiple energy-saving initiatives, including the replacement of chiller and air conditioners, water dispensers, and energy-efficient lighting, and installed a 390 kW solar power system at our Taoyuan site in Taiwan to reduce reliance on purchased electricity.
Additionally, in 2024, three Acer subsidiaries - Acer AEB, ACSI, and Weblink - relocated to the Acer Building in Nangang. This building holds a Gold Level Green Building certification, with infrastructure components including the building envelope, air conditioning systems, and lighting systems meeting energy efficiency standards. The facility is equipped with an energy management system that monitors electricity, air conditioning, and lighting usage.
Climate-Related Opportunities
Profile | Opportunity Item and Impact Description | Response Measures and Action Plans |
|---|---|---|
Development and/or Addition of Low-Carbon Goods and Services | Medium-to-Long term
Facing global low-carbon transitions and trends, developing or enhancing the application value of low-carbon products or related low-carbon services, can help boost business revenue | As a human-centric company, our mission is clear – driving the development and innovation of "Conscious Technology" with humans at heart and the planet in mind. Acer employs the concept of circular economies and strives to reduce the impact of our products on the environment throughout their life cycles, to respond to consumer preferences for low carbon products.
In the design phase, we have introduced the concept of circular economy and actively promoted material innovation, choosing materials with low impact on the environment, such as post-consumer recycled plastics used in computers and monitors. We have also expanded their use to various product lines in the Vero series, including projectors, computer peripherals, and suitcases. Additionally, we have adopted OBP (Ocean Bound Plastic) in the touchpads of notebook computers and Acer Vero Ocean Series apparels.
As a human-centric company, our mission is clear – driving the development and innovation of "Conscious Technology" with humans at heart and the planet in mind. Acer employs the concept of circular economies and strives to reduce the impact of our products on the environment throughout their life cycles, to respond to consumer preferences for low carbon products.
In the design phase, we have introduced the concept of circular economy and actively promoted material innovation, choosing materials with low impact on the environment, such as post-consumer recycled plastics used in computers and monitors. We have also expanded their use to various product lines in the Vero series, including projectors, computer peripherals, and suitcases. Additionally, we have adopted OBP (Ocean Bound Plastic) in the touchpads of notebook computers and Acer Vero Ocean Series apparels. we plan and decide on models and proportions of post-consumer recycled plastics, carefully selecting suppliers. For packaging materials, we use environmentally friendly materials and reduce packaging volume and weight by simplifying packaging and using uniform packaging dimensions and printed products. During the shipping phase, we continue to implement an optimized ground operation model at production sites through close cooperation with logistics providers. In usage, we have introduced "Modern Standby," based on the US Energy Star standard, as the basis for product design, providing a power management model that continues to deliver more products with low energy consumption to consumers. In product recall, we continue to implement recycling programs around the world and support Individual Producer Responsibility (IPR). We are committed to working with stakeholders such as governments, consumers, channels, and retailers to share responsibility for e-waste management and recycling.
In the manufacturing phase, we collaborate with suppliers to enhance resource utilization efficiency, reduce carbon emissions, and ensure proper waste management. We also drive manufacturing process transformation to increase renewable energy adoption rates, effectively reducing greenhouse gas emissions throughout the production process.
In the product transportation phase, we work closely with our logistics partners and formulate a sustainable logistics strategy, with a focus on transitioning to low-carbon transportation, including the use of Sustainable Aviation Fuel (SAF) and Sustainable Marine Fuel (SMF) to reduce carbon emissions in the transportation process, and the promotion of slip sheets to replace wooden pallets to enhance the efficiency of transportation and further reduce the environmental impact.
In the product use phase, we have set a target to achieve a 45% reduction in the average energy consumption of personal computers by 2025, compared to 2016. And the last, in the product disposal phase, we offer various recycling channels to ensure proper recycling and disposal by qualified recycling and processing partners. |
Use of Low-Carbon Energy | Medium-to-Long term
By switching to low-carbon emission energy to replace coal-fired electricity and reducing energy consumption in production and delivery, we can reduce carbon emissions and bolster our resilience to climate change and related regulations | Ace strives to achieve 100% renewable electricity use at our operational sites by 2035. Through collaboration with our supply chain partners, we aim to expand participation in renewable energy and energy storage system investments, seize opportunities in renewable energy adoption, and build a low-carbon supply chain.
In 2024, we used 18,620,000 kWh of renewable electricity (including RECs) in our operations, achieving our interim target of 60% renewable electricity one year ahead of schedule and continuing to progress toward our 100% renewable electricity usage target by 2035.
In addition to renewable electricity, to further reduce carbon emissions during transportation,since 2022, we have piloted the use of Sustainable Marine Fuel. In 2023, we continued to partner with logistics providers KUEHNE+NAGEL and Expeditors to use SMF In 2024, we expanded our scope to include Sustainable Aviation Fuel and added logistics suppliers DSV and Dimerco. Overall, the carbon emission reduction from using these new energy sources increased by 38% and reduce 667 tons carbon emissions tons compared to 2023. In terms of land transportation, we continue to use electric vehicles for delivering laptops in Chongqing. We work closely with suppliers, aiming to further reduce carbon emissions during the transportation phase through various new energy solutions.
|
Changes in Consumer Preferences | Short-Medium-term
As low-carbon transition has risen as a trend, customer demand for energy efficient products and corporate climate resilience has increased. A prompt focus on high-efficiency product development and marketing can enable us to gain a competitive advantage, thus increasing revenues | As net zero emissions have become a major issue driving international policy and industrial development, corporate customers tend to look for products and services with less environmental impact, as well as suppliers with the same awareness, and continue to incorporate green procurement practices into their assessment criteria for orders. Preference for green products is also gradually increasing, and this is reflected in product purchases.
As such, we continue to strengthen communication and disclosure around the environmental performance of our products. At the product design end, in addition to complying with legal and regulatory requirements for product sales in all regions, Acer continues to improve product energy efficiency, reduce the use of hazardous chemicals, facilitate recycling, and extend product life, all of which demonstrate our commitment to optimization of product design. Ultimately, we communicate and disclose the environmental performance of our products to consumers through various environmental labels. |
※Risk and opportunities impact period definition: short-term: 0-3 years, medium-term: 3-8 years, long-term: 8-28 years
Climate-related Scenario
In order to assess the financial impact of climate impact, Acer sought external cooperation to develop financial quantitative and situational analysis, to carry out an assessment of the potential financial impact of Acer's climate-related transformation risks, physical risks, and climate opportunities to accurately measure the amount and distribution of resources to be invested.
Acer's climate scenarios make reference to climate scenarios published by international organizations, including RCP 2.6 from the Intergovernmental Panel on Climate Change (IPCC), RCP 8.5, NZE 2050 by International Energy Agency (IEA), and Taiwan’s Nationally Determined Contributions (NDCs Taiwan).
Additionally, under these scenarios, we further assume reference to the Announced Pledges Scenario (APS) of the IEA, which involves developed economies, emerging markets, and developing economies committing to net-zero emissions. Additionally, based on a study commissioned by the Environmental Protection Administration and conducted by the London School of Economics (LSE), we estimate the carbon fee prices in Taiwan according to the "Carbon Pricing Options for Taiwan" research report. We estimate the financial impacts Acer may face in the year 2030, including the carbon fees and compliance expenses at each operational location in Taiwan, the costs transferred from upstream suppliers due to greenhouse gas emission fees, and potential carbon border tariffs on products exported to carbon-taxing countries.
Physical Climate-related Scenario
Scenario Used: RCP 2.6 & RCP 8.5
Coverage: Company-wide
Parameters, assumptions, analytical choices
We identified the risk caused by changes in physical climate parameters which include an increase in extreme weather events—heavy rainfall and an increase in average temperature. The risk of an increase in extreme weather events is based on the IPCC 1.5DC report in 2018, under the 2°C scenario, in the future, there will be 1.2 Category 4 typhoons (wind speed over 58m/s, Category 17 gust) and 1.2 Category 5 typhoons (wind speed above 70m/s, 17-level gust) every year in the world. As for the risk of an increase in average temperature, based on the data from the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP), under the RCP2.6 scenario, the annual average daily temperature in Taiwan may increase by 0.64~1.64°C from 2021 to 2040; under the RCP8.5 scenario, in 2036~2065, the annual average daily temperature in Taiwan (headquarters) may increase by 0.64~1.64℃ and 1.5~2℃.
Focal questions and the results
We focus on the risk of the increase in the global average temperature because it will lead to a significant increase in air conditioning system power consumption at Acer's cloud server rooms, offices, and supply chain product assembly sites. We identify it as the main risk is because it almost certain to happen, and will increase not only the amount of electricity consumption but also carbon emissions that lead to a higher cost of the operational fee. In addition, Acer's product assembly plants may be affected by higher demand, unstable electricity infrastructure, insufficient backup capacity, local government power limiting measures, or large-scale power outages, resulting in adverse impacts on product shipment and finances. For detail of the financial impact, please see our CDP Climate Change Questionnaire.
Transition Climate-related Scenario
Scenario Used: IEA NZE 2050 & NDC (Taiwan)
Coverage: Company-wide
Parameters, assumptions, analytical choices
We identified the risk caused by changes in transition climate parameters and focus on the two risks of increased sustainability-related demand and regulations and increased costs of greenhouse gas emissions. As for renewable energy, under the International Energy Agency (IEA)NZE 2050 scenario, renewable energy will become the main energy source. By 2050, nearly 90% of power generation will come from renewable energy. These governments may drive companies to use renewable energy through regulations, such as the Renewable Energy Development Regulations in Taiwan, or increase the non-renewable energy fee. In addition, global carbon tax, such as Carbon Border Adjustment Mechanism (CBAM), will be the requirement for product export to the EU. Countries such as the USA, Japan, and Taiwan will introduce their internal carbon trading scheme to control the total emission under the national target. According to the IEA NZE scenario, the prices of the developed economies with net-zero commitments such as the EU and the US, and the carbon price is expected to be US$140 per ton in 2030. The emerging markets with net-zero commitments such as China, and the carbon price is expected to be US$90 per ton in 2030.
Focal questions and the results
We focus on the risk of emerging carbon emission-related regulations because of the increasing demand for and regulations (e.g. carbon taxes, carbon fees) on greenhouse gas emissions after the Paris Agreement may lead to a large cost on the product and a greater impact on our business. For example, the European Union Carbon Border Adjustment Mechanism (CBAM) is set to enter a test period from October 2023 and be officially implemented in 2026. The US Clean Competition Act and Taiwan's Climate Change Response Act are expected to impose carbon fees in the near future. Greenhouse gas emissions exceeding the core quota will incur greenhouse gas emissions costs, and may cause suppliers to pass on these costs and adjust pricing, affecting product competitiveness. For detail of the financial impact, please see our CDP Climate Change Questionnaire.
Risk Management
Acer's corporate philosophy is based on the ultimate goal of ''sustainable development''. We believe that rigorous and pragmatic risk management not only reflects Acer's persistent commitment to our customers, employees, supply chain partners and investors, but also to our long-term commitment to ensuring sound business performance and compliance of corporate social responsibility. It is also a concrete act of ensuring sound business performance and fulfilling corporate social responsibility. The relationship between sustainable corporate development and risk management is intricate. Only by continuously identifying risks and assessing the short-term dynamic changes and long-term trends of risks and implementing relevant risk response plans, and by establishing a corporate culture that takes account of both the effective use of opportunities and the balance of risks through frank internal communication and training programs, can we ensure our hard-earned business results and achieve our goal of "sustainability".
Acer incorporates climate risk identification and assessment into the enterprise risk management (ERM) process, through the three lines of defense of the risk management organization, self-assessment and process improvement of each business unit, procedural guidance and legal compliance of each support department, and the audit management procedures of internal audit unit. We integrate the ERM implementation with the daily operating procedures of each department/unit and the Company's business targets, and integrate the ESG and climate factors into the decision-making process. Through the PDCA cycle, we conduct regular reviews on the effectiveness of the risk management plan and the improvement possibility during the working group meeting for continuous adjustment/improvement.
achieve our vision of sustainable development and establish a corporate culture that prioritizes risk awareness, the Company not only adheres to organizational management systems and operational procedures at all levels to implement relevant risk management measures, but also strives for continuous improvement in our risk management practices through the active involvement of senior executives. We rely on international standards such as the ISO31000:2018 Risk Management System and the Enterprise Risk Management - Integrated Framework (COSO ERM 2017), as recommended by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), to guide our efforts. In line with this commitment, the Company has developed risk management policies, which was approved by the Board of Directors and implemented on March 16, 2022.
Climate Change Risk Identification Procedure
Acer follows a process for identifying and assessing climate-related risks by referring to relevant climate change information, TCFD recommendations, and reports and information from other domestic and international organizations. Taking into account its own business characteristics, we have compiled a list of climate risk into Acer's climate risk inventory. Each risk is then comprehensively evaluated based on its "risk impact level," "risk potential vulnerability," and "risk occurrence probability." By multiplying these scores, we classify climate risks to identify short, medium, and long-term climate change risks. Furthermore, to evaluate the financial impact of various risks and opportunities on company operations, the Chief Sustainability Officer and working group members conduct a secondary assessment based on the "occurrence probability" and "degree of financial impact" of risk and opportunity events. This strengthens the connection between Acer's climate-related risks and opportunities and financial information, thereby more effectively providing reference for decision-making by users of general-purpose financial reports. The compiled list of material climate-related risks expected to impact the company's outlook is submitted to the Risk Management Executive Committee for reporting and disclosure.
Process for managing climate-related risks
Acer's climate risk management process adheres to the company's overall risk management system, which encompasses five procedures: risk identification, risk analysis, risk assessment, risk response, and risk monitoring and review. During the risk identification phase, risk management tools are employed, and potential risk events that could prevent the company from achieving its objectives or cause losses or negative impacts are comprehensively identified through both "bottom-up" and "top-up" analytical discussions, based on past experiences, information, consideration of internal and external risk factors, and stakeholder concerns. In the risk analysis phase, appropriate quantitative or qualitative measurement standards are formulated according to the company's risk characteristics to serve as the basis for risk analysis. The risk assessment phase determines which risk events require priority handling, providing a reference for subsequent response measure formulation. In the risk response phase, risk mitigation strategies are selected and implemented, establishing prevention, contingency, crisis management, and business continuity plans as necessary to effectively control risks while balancing objective achievement and cost-effectiveness. Finally, during the risk monitoring and review phase, the risk management process and related risk strategies are reviewed to ensure continued effective operation and to confirm that risk management is linked to key organizational processes, thus effectively monitoring and enhancing the benefits of risk management implementation.
Metrics and Targets
Acer shoulders the mission of being a leading brand and promises to achieve net zero emissions by 2050, increase the share of renewables in energy consumption to 100% by 2035 and set Science Based Targets (SBT) aligned with the 1.5°C carbon reduction pathway. By 2030, Acer aims to reduce carbon emissions by 50% in organizational operations compared to 2019, and reduce the value chain emissions by 35% compared to 2020. In addition, by 2025, the Acer personal computer product average energy consumption will be reduced by 45% compared to 2016 and the computer and displays product will reach to 20-30% post-consumer recycled plastic material content.
Since 2011, we have conducted annual GHG inventories in accordance with the GHG Protocol, using the operational control approach and in line with the Group's consolidated financial reporting boundaries. We also commissioned a third-party verification agency certified by Taiwan's Environmental Protection Administration to undertake greenhouse gas emission verification for both direct and indirect categories, i.e., Scope 1, Scope 2, and Scope 3, and acquired the ISO 14064-1: 2018 Grenhouse Gas Verification Statement.
In 2024, our operational emissions (Scope 1, 2) were 8,319 tonnes, a reduction of 21.2% compared to the previous year and a decrease of 39.6% compared to the baseline year of 2019. Our value chain carbon emissions (Scope 3) were 4,984,022 tonnes, a reduction of 14% from the previous year and 38.8% from the 2020 baseline year, both results were meeting the expected reduction target.
