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Nature and Climate Transformation

Our Nature and Climate Actions

Acer is committed to achieving its No Net Deforestation (NND), No Net Loss (NNL), as well as Net Positive Impact (NPI) goals through the implementation of avoidance, reduction, restoration, offsetting, and other conservation actions within the framework of its corporate responsibility. Acer is addressing these issues through three major strategic aspects: operations, products, and supply chain. Simultaneously, Acer is committed to achieving the net zero goal by 2050. We have released the key strategies for achieving net zero and have launched nine strategies in three major dimensions. We are dedicated to comprehensively reducing our carbon footprint through three strategies: corporate operations, products and services, and a low-carbon supply chain.

Building natural and climate capabilities and cultural practices

Acer recognizes the importance of natural and climate issues on the company's impact. Each year, through educational training and initiatives such as Project Humanity, the company focuses on ESG-related issues and continuously cultivates employees' climate awareness. These efforts embed corporate goals like net-zero emissions and RE100 into the core corporate culture and implement them in practice, strengthening sustainable development competitiveness. Furthermore, since 2022, Acer has incorporated biodiversity into its Global ESG Project Awards to raise biodiversity awareness among Acer employees worldwide. By 2024, operational sites worldwide have proposed 18 environmental and biodiversity-related projects, covering diverse initiatives including packaging plastic reduction, tree planting projects, and beach cleaning activities.

Additionally, we evaluated directors' involvement in economic, social, and environmental issues as part of its sustainability policy, including regular communication, reporting, and risk assessment. We regularly communicate with responsible units about economic, social, and environmental matters, listen to reports, review implementation status, and assess risks. In 2024, Acer directors attended in environmental and climaterelated development courses to strengthen their climate competencies required for their duties. For our internal employees and suppliers, we collaborated with an external team to organize ISO 14067 product carbon footprint education and training. This program provided detailed explanations of product carbon footprint regulations and shared actual inventory assessment examples. The training aimed to help approximately 130 participants (including both in-person and online attendees) from company employees and supply chain manufacturers gain deeper understanding of the product carbon footprint inventory process and required information. Participants learned to master implementation details, enhance their understanding and execution capabilities for carbon footprint management, while simultaneously improving the accuracy and reliability of the company's product carbon footprint assessments.

Renewables Electricity Usage

Acer is committed to achieving 100% global operations using renewable energy by 2035. We are increasing the proportion of renewable energy used by the group through a strategy of self-built solar power systems and the purchase of renewable energy. 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. The sources of renewable electricity include on-site solar power

self-consumption at sites, long-term corporate power purchase agreements (CPPAs) with renewable electricity suppliers, and renewable energy certificates (RECs) from the local locations where our operates worldwide in accordance with the RE100 technical criteria including, Including International Renewable Energy Certificates (I-RECs), Guarantees of Origin (GOs), and others. Additionally, in the same year, we constructed a 390 kV solar power system at our Taoyuan site in Taiwan, which began supplying electricity to our data center to decrease the reliance on purchased electricity.

2024 Renewable Electricity Performance

Self-owned PV power plants sold to the local power grid

3,485,711 kWh

Renewable electricity used in operations

18,624,357 kWh

Renewable electricity used in ICT product business

79.9 %

Renewable electricity used accounting for Acer Group

60.3 %

Introduction of Internal Carbon Pricing Mechanism

In order to implement carbon reduction and respond to the international carbon border tax (such as EU's Carbon Border Adjustment Mechanism, CBAM) and carbon fee mechanism under the trend of carbon pricing, Acer introduced an internal carbon pricing mechanism in 2022, which uses a shadow price mechanism, establishing a carbon price of US$ 63-127 per metric ton based on the recommendations of High-level Commission on Carbon Prices in support of the Paris Agreement goal of limit global warming rates to below 2° C. This ensures various departments and operating bases to actively carry out more carbon reduction action. The mechanism also acts as the evaluation basis for the Company's introduction of innovative low-carbon solutions such as nature-based solutions, hydrogen energy technology, carbon negative technology and other projects, and we hope that the internal carbon pricing mechanism will accelerate the upgrading to high-efficiency equipment and electrifying official vehicles in operating bases. This will enable the Company to invest in the renewable energy industry and smart energy management systems, facilitating Acer's low-carbon transition and its alignment with the climate-related disclosures of the International Financial Reporting Standards (IFRS S2）.

Increase in investments in sustainable energy

Acer actively promotes low-carbon transition as part of its sustainable development strategy. We invests in long-term strategic investments and energy-saving equipment to develop business in the renewable energy industry, smart energy management systems, and energy storage facilities. This includes a partnership with GreenHarvest, a solar and energy management company, in 2022 to acquire a smart energy management system BOT project of the Shalun Smart Green Energy Science City.

In 2023, Acer invested no more than NT$1.85 billion in Haoru Electric, an energy storage system development company, and subscribed for approximately 11% of the equity in C-LiFe Technologies, Inc., a lithium-iron-phosphate battery manufacturer, with NT$330 million. In 2024, the Board of Directors approved an increase in investments for energy storage sites within a budget not exceeding NT$4 billion. These investments have further strengthened

Acer's presence in the upstream and downstream sectors of the energy storage industry, enabling us to offer total solutions from manufacturing to application and from the front-end to the back-end. These efforts will contribute to our energy transition and fulfill our commitment to achieve the net-zero goal.

Using technology to assist in natural observation and resource management

In 2024, Altos took on the Xucuogang Project in the Dayuan District, Taoyuan City, leveraging its core competencies to assist in avian identification initiatives. The Xucuogang Wetland, the largest coastal wetland in northern Taiwan, features rich biodiversity and offers spectacular views of thousands of water birds gathering during winter months. It has also been recognized by BirdLife International as an important habitat for wild birds. For the Xucuogang avian identification project, Altos delivered comprehensive solutions beyond merely providing high-performance AI workstations. The company collaborated closely with software partners to develop an integrated, precision-driven bird identification system. This solution harnesses advanced AI technology to catalog and monitor 25 common wetland bird species, including the Chinese egret and little tern. The system documents essential ecological data including species nomenclature, distinctive characteristics, behavioral patterns, conservation status, endemic classification, and habitat information. The information is streamed live to an online platform, ensuring higher accuracy and precision in identification processes, thus facilitating more effective ecological research and conservation efforts.

Ocean Conservation Actively

In response to the theme "Planet vs. Plastics" for Earth Day 2024, Acer encourages users to actively participate in ocean conservation efforts through understanding the importance of coastal and waterway cleanups, participating in local activities, and sharing relevant information, working hand-in-hand to maintain a sustainable marine environment. Additionally, Acer has partnered with Plastic Bank, a Canadian social enterprise, committing to recycle and collect at least 50 tons of plastic waste from the environment in 2024.

The project combines the efforts of collectors in Southeast Asia to prevent over 2.5 million plastic bottles from entering the ocean.

Collectors gather plastic waste and deliver it to Plastic Bank branches, where they can exchange it for additional income at local market prices and social benefits, such as meal vouchers and health insurance. This enables residents to collect and trade plastic as a source of income or exchange it for goods and services to support their livelihoods.

Terrestrial Ecosystems: Promoting Climate Adaptation and Ecological Conservation through Afforestation

Trees can absorb carbon dioxide, mitigate climate change, provide habitat and food for wildlife, and help prevent soil erosion. Acer has collaborated with professional tree-planting organizations at its operational locations globally, planting nearly 300,000 trees globally since 2020. This initiative not only contributes to global carbon reduction, ecological conservation, and biodiversity but also supports the livelihoods of local farmers.

Aquatic Ecosystems: Enhancing Biodiversity Conservation and Research with Technology

The ocean is one of the Earth's vital ecosystems and a treasure trove of biodiversity. From climate regulation, resource development, transportation, to fisheries, it is an integral part of human activities. However, the influx of plastic waste into the ocean has led to global microplastic pollution, resulting in marine environmental degradation and adverse impacts on marine ecosystems. Acer is committed to addressing Sustainable Development Goal (SDG) 14, which focuses on sustainable oceans and conservation. The latest generation of the Aspire Vero chassis, launched in 2024, utilizes over 70% post-consumer recycled (PCR) materials, combined with oyster shell powder-based biomaterial. This innovation allows Vero products to help address the growing issue of discarded oyster shells in coastal villages. Please refer to the 2024 global initiatives.