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 and enhance risk management functions and to achieve the Company's SDGs, the Board of Directors serves as the highest governance body for climate-related topics. The Risk Management and Sustainable Development Committee (RMSDC) was established under the Board of Directors to execute its climate-related decisions. The Risk Management and Sustainable Development Committee serves as the highest authority for risk management and opportunity development within the Company. It
reports to the Board of Directors and executes its decisions regarding risk and opportunity to strengthen the Company's sustainable governance.
Furthermore, we have established a cross-departmental project team in 2024 to initiate preliminary work to ensure alignment with the International Financial Reporting Standards (IFRS) sustainability disclosure standards. In 2025, we completed the identification of sustainability-related risks, opportunities, and financial impacts, as well as the assessment of significant sustainability-related financial information. We have also finalized phased tasks, including the identification and collection of required data, and the revision of company processes—including financial and non-financial reporting, information systems, supply chain management, internal controls, and the daily operations of various departments—thereby paving the way for the implementation of IFRS S2 Climate-related Disclosures.
For detail, please see our CDP Climate Change Questionnaire , and Acer TCNFD report.
Governance
The Board of Directors is the highest governance body of the company and is also the highest decision-making authority for climate-related 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 climate risk identification and assessment into the enterprise risk management (ERM) process to identify climate-related risks and opportunities. Risks and opportunities that can reasonably be expected to affect the Company's outlook are linked to relevant time horizons and strategic decisions, categorized as "short-term," "medium-term," and "long-term," in order to assess the potential impact on the Company's business model and the upstream, midstream, and downstream segments of its value chain across different time periods, and to take corresponding action.
The 2025 assessment results indicate that, with respect to physical climate risks, the severity of extreme weather events may intensify as climate change drives increases in the frequency and intensity of extreme rainfall events, potentially causing flooding, moisture damage, and structural damage to operational sites, warehousing facilities, and logistics nodes. This could affect inventory (raw materials, work-in-progress, and finished goods), leading to write-offs, quality degradation, or delivery delays, and resulting in financial losses and supply chain disruptions. Regarding transition risks, under the global net-zero emissions trend, climate-related requirements and regulations, as well as sustainability disclosure and low-carbon product standards, may require companies to undertake additional compliance action plans or compel them to make corresponding commitments. This would result in compliance costs associated with internal system optimization, adoption of circular materials, or low-carbon technologies, which not only increase costs but may also extend development timelines, posing risks of customer attrition and diminished competitiveness.
On the climate opportunities side, amid the ongoing shift toward low-carbon products, the development of low-carbon products and services presents an opportunity to proactively anticipate regulatory changes and eco-label requirements, manage these more efficiently than competitors, gain cost advantages, and capture product sales opportunities. At the same time, early investment in new technologies for products and services that meet future regulatory requirements can enhance product and service
competitiveness and generate greater profit opportunities. Furthermore, by implementing climate-related standards, strong sustainability performance can earn positive recognition from stakeholders and enhance the Company's reputation, representing another potential opportunity for Acer.
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, for the assessment of flood-related physical risks, the SSP2-4.5 and SSP5-8.5 scenarios adopted in the IPCC Sixth Assessment Report (AR6) were applied to evaluate flood exposure and its potential impacts under different climate conditions.
Acer's Strategic Decision-Making Timeframe
Period | Definition | Relation to strategic decision-making processes |
|---|---|---|
Short-term | Under 3 years | Acer's planning cycle for major internal decisions is approximately three years. |
Medium-term | From 3 to 5years | Acer commits to achieving a Science-Based Target (SBT) by 2030, which includes a 50% reduction in operations carbon emissions and a 35% reduction across value chain. We develop strategies based on this commitment. |
Long-term | Over 5 years | Acer commits to achieving net zero emissions by 2050 and increase the share of renewables in energy consumption to 100% by 2035. We develop strategies based on this commitment. |
Climate Risks, Opportunities and Our Response Measures
Transition Risk
Regulation and Policy
Impact Period | Affected Area | Description of Impact | Overview of Strategic Decisions | Action Plans, and Project Execution Progress | |
|---|---|---|---|---|---|
Climate-related requirements and regulations | Short, medium, and long-term | Upstream, midstream, and downstream of the value chain | Under the global net-zero emissions trend, countries are controlling and reducing carbon emissions through carbon pricing mechanisms as the primary reduction measure. In addition, emerging climate-related regulations may require companies to adopt more compliance action plans or compel them to make corresponding commitments. Specifically, these regulations include:
| Dimensions of strategic decision-making: Corresponds with "Business Operations", "Products & Services", and "Supply Chain Management | In 2025, we initiated the review of our Science Based Targets net-zero carbon reduction commitment (SBT Net-Zero), successfully completed external verification of our greenhouse gas emissions along with the annual Sustainability Report, and actively advanced preparations for CSRD and IFRS disclosures. On carbon emissions and renewable energy indicators, in addition to continuously achieving the target of 60% renewable electricity usage, the Company’s consolidated annual operational carbon emissions (Scope 1 and 2) have decreased by 31% compared with the 2019 Science Based Targets baseline year, remaining aligned with the committed reduction pathway. |
Physical Risk
Immediate
Impact Period | Affected Area | Description of Impact | Overview of Strategic Decisions | Action Plans, and Project Execution Progress | |
|---|---|---|---|---|---|
Severity of extreme weather events and natural disasters | Short, medium, and long-term | Upstream, midstream, and downstream of the value chain | With climate change driving an increase in the frequency and intensity of extreme rainfall events, flooding caused by heavy rain, inundation, or surface runoff may expose operational sites, warehouse facilities, or logistics nodes to water damage, dampness, and structural damage. Such water damage incidents could also affect inventories (raw materials, work-in-progress, and finished goods), resulting in end-of-life status, degraded quality, or delivery delays, thereby causing financial losses and disruptions to supply chain operations. In addition, natural disasters such as typhoons, extreme rainfall, and earthquakes may cause facility damage, requiring substantial funds for repair and reconstruction, thereby increasing the Company’s operating costs. High-risk areas, particularly those prone to frequent disasters, can lead to escalating insurance premiums and increased hidden expenses. | Corresponds with "Business Operations" | In response to earthquakes or extreme rainfall caused by typhoons, we ensure that potential operational risks are appropriately transferred by regularly reviewing the adequacy of our insurance arrangements, such as global property and cargo insurance policies. Additionally, we continuously strengthen related loss prevention measures to minimize the financial impact that extreme weather events may cause. |
Climate-Related Opportunities
Products and Services
Impact Period | Affected Area | Description of Impact | Overview of Strategic Decisions | Action Plans, and Project Execution Progress | |
|---|---|---|---|---|---|
Development of low-carbon products and services | Short, medium, and long-term | Upstream, midstream, and downstream of the value chain | Amid the transformation toward low-carbon products, the Company leverages forward-looking assessments of regulatory changes and eco-label requirements to manage more efficiently than competitors, gaining cost advantages and capturing sales opportunities. At the same time, it invests early in new technologies that meet future legal standards, thereby enhancing product and service competitiveness and increasing profit potential. | Corresponds with "Products & Services" | 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. 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 achieved our 2025 target of reducing the average energy consumption of personal computers by 45% compared with the 2016 baseline. Therefore, we have set a target to achieve: Notebook energy consumption decreased by 31% and desktop computer energy consumption decreased by 32% compared with 2020. In the product disposal phase, we offer multiple recycling channels, ultimately ensuring proper recycling and disposal by qualified recyclers and processors. In 2025, Acer collected a total of 13,837 tonnes of electronic products across Asia, the Americas, and Europe, achieving a recycling rate of 13.9%. Percentage of products collected and subsequently recycled is 89.4%. |
Climate-related requirements and regulations | Short, medium, and long-term | Upstream, midstream, and downstream of the value chain | Compliance with climate-related regulations and strong sustainability performance will help stakeholders positively recognize the Company, thereby enhancing its reputation, encouraging investment in new sustainability-related technologies, and increasing competitiveness to create opportunities for higher profits. | Corresponds with "Products & Services" |
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Climate-related Scenario
Scenario Analysis Framework
In order to assess the financial impact of nature and 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 nature and climate-related transition risks, physical risks, and climate opportunities to accurately measure the amount and distribution of resources to be invested. For climate-related physical risks, we referenced scenarios published by international organizations, including the Intergovernmental Panel on Climate Change (IPCC) RCP 2.6 and RCP 8.5*, as well as the Sixth Assessment Report (AR6) moderate-emission scenario (SSP2-4.5) and very high-emission scenario (SSP5-8.5). For climate-related transition risks, we adopted the International Energy Agency (IEA) Net Zero Emissions by 2050 (NZE 2050) scenario and Taiwan’s National Development Council (NDC) Taiwan 2050 Net-Zero Emissions Pathway and Strategy as the analytical basis for corresponding assessments.
Value Chain Coverage | Risk Category | Interval | Scope of Analysis | Reference Scenario | |
|---|---|---|---|---|---|
Operations | Transition Risk | Climate-related requirements and regulations | Short-term/medium-term/long-term | Within the bounds of the consolidated financial statements | NDC、IEA NZE |
| Physical Risk | Severity of Extreme Weather Events and Natural Disasters | Short-term/medium-term/long-term | SSP2-4.5、SSP5-8.5 | ||
Products and Services | Transition Risk | Sustainability Disclosure and Low-Carbon Product Regulations | Short-term/medium-term/long-term | Core business products | NDC、IEA NZE |
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".
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.
Integration of climate risk identification and management processes
Integration of climate risk identification and management processes: Acer has integrated Enterprise Risk Management (ERM) with Environmental, Social, and Governance (ESG) topics, enabling risk management mechanism to provide comprehensive coverage of significant risks and opportunities related to corporate operations and sustainable development. To realize our vision of sustainable development and foster a corporate culture of risk awareness, we have implemented and adopted international risk management standards under the active guidance and oversight of senior management. These standards, including ISO 31000:2018 Risk Management – Guidelines and the COSO ERM 2017: Enterprise Risk Management – Integrating with Strategy and Performance, serve as the foundation for the establishment and continuous improvement of our risk management system.
By employing systematic mechanisms for risk identification, analysis, assessment, response, monitoring, and review, we integrate risk management into our strategy formulation and operational decision-making processes, strengthening corporate resilience to effectively address internal and external environmental changes while supporting the creation, maintenance, and realization of long-term corporate value. 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 decisionmaking process, through three lines of defense including 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. 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. The Risk Management Policy was implemented following its approval by the Board of Directors on March 16, 2022.
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 our commitment towards achieving our net zero goal by 2050, we have established SBTs for reducing carbon emissions, implemented an internal carbon pricing mechanism, and started the Earthion and Climate Lab initiatives to promote research, development, and innovation. We also took various other measures to achieve this goal, such as signing long-term CPPA, investing in renewable energy sources, and conducting research on carbon offsetting, including carbon credits development, carbon capture, and reuse. Through the continuous increase in our use of renewable energy and the reduction of carbon emissions, we will fulfill our commitment. In 2025, Acer acquired a controlling stake in Posiflex Technology, strengthening its AIoT industry presence. In the second half of 2025, the Company incorporated Posiflex Technology’s environmental data into its consolidated statistics. Following the consolidation, total annual operational carbon emissions (Scope 1 and 2) increased by 14.1% compared to the previous year, reaching 9,496 metric tons. This figure represents a 31% reduction compared to the 2019 base year for its science-based carbon reduction goal, remaining consistent with the Company's committed reduction pathway. These results demonstrate that the key net-zero strategies we implemented—including the electrification of gasoline and diesel vehicles, the introduction of energy-saving initiatives, and the increased use of renewable electricity—have yielded progressive results in reducing carbon emissions.
