Nature-related Financial Disclosures (TNFD) | ACER ESG
Nature-related Financial Disclosures (TNFD)
In 2023, Acer became a member of Early Adopters of the Taskforce on Nature-related Financial Disclosures (TNFD), identifying nature and biodiversity-related risks and opportunities and respond accordingly, and publishing nature-related disclosure information. This initiative aims to gradually identify, assess, manage, and disclose dependencies, impacts, risks, and opportunities related to nature beyond climate-related risks and opportunities, and to respond proactively.
For detail, please see our 2025 Climate and Nature-related Financial Disclosures Report
Governance
Board Oversight
The Board of Directors serves as Acer's highest governance and decision-making body. It is responsible for the management and significant decisions regarding nature-related risks and opportunities. The Risk Management and Sustainable Development Committee, established under the Board, functions as the highest competent authority for nature-related risks and opportunities, strengthening risk awareness and the sustainable development governance framework. The Risk Management and Sustainable Development Committee reports to the Board of Directors and coordinates the Group's overall risk and opportunity management. It promotes various initiatives through its subordinate committees and working groups, including those focused on risk management, sustainable development, and information security. Regarding environmental issues, the committee is responsible for reviewing the operational dependency and impact on the environment, as well as associated risks and opportunities. It supervises the formulation and implementation of response strategies, oversees external communications, and provides advice for improvement. Furthermore, it reports to the Board of Directors at least once a year to ensure that relevant topics are integrated into the Company's decision-making and governance processes. The committee adopted a Biodiversity Policy and Commitment in 2023, approved the results of Acer's natural and biodiversity risk assessment in 2024, and revised the policy for product packaging and forest conservation in 2025.
Management's evaluation and management
Acer has integrated risks associated with nature and biodiversity into its risk management policy and procedures. The Risk Management Executive Committee serves as the highest advisory body at the operational level. It is responsible for approving risk management priorities, assessment results, and response measures. It also oversees the continuous improvement of risk management regarding strategy, operations, finance, disasters, and nature and biodiversity, and reports regularly to the Board of Directors and the Risk Management and Sustainable Development Committee. The Corporate Sustainability Committee, led by the Chairman and Chief Executive Officer, comprises senior executives and cross-departmental working groups. It is responsible for establishing the sustainability vision and medium- to long-term targets, integrating resources, and promoting various sustainability initiatives. Regarding nature and biodiversity, the Corporate Sustainability Officer (CSO) coordinates the identification, analysis, and management of associated risks and opportunities. The CSO also formulates and promotes strategic responses and targets, while strengthening risk management and sustainability performance through cross-departmental collaboration and regular reporting mechanisms.
Strategy
Based on the TNFD LEAP (Locate, Evaluate, Assess, Prepare) framework, Acer performed a comprehensive assessment of key value chain locations using the WWF Biodiversity Risk Filter. The assessment incorporated Basin Physical Risk (BPH), Basin Regulatory Risk (BRG), and Basin Reputational Risk (BRP) analyses, and was complemented by spatial overlays of various nature-related datasets, including the World Database on Protected Areas (WDPA), Key Biodiversity Areas (KBAs), WWF Priority Ecoregions, Taiwan's legally protected areas, and the Taiwan Ecological Network. The assessment focused on identifying locations located within or in proximity to ecologically sensitive areas and evaluating their potential nature-related impacts.
The scope of this analysis encompasses the key value chain of Acer, including:
- Key suppliers
- Own operational scope identical to that of greenhouse gas inventory
- Top ten customers
Furthermore, we have verified the operating characteristics, scale, and impact of the relevant locations and have formulated corresponding measures. The primary results are as follows:
- Among the priority sites, 1.4% of upstream suppliers are situated within "IUCN Category VI" protected areas. Limited use of natural resources is permitted within these areas, provided that the ecosystem in the area is properly protected and conserved. Acer maintains ongoing communication with suppliers to ensure they develop response strategies, continuous monitoring mechanisms, and stakeholder engagement mechanisms.
- The analysis also identified that 1.3% of Acer’s operational sites are located within Key Biodiversity Areas (KBAs). Further review revealed that, although these sites are situated in urban centers and suburban areas, their locations overlap with observation records of bird species classified as Vulnerable (VU) by the International Union for Conservation of Nature (IUCN). While the operational characteristics of these sites do not involve water- or energyintensive manufacturing activities, Acer will continue to monitor the situation and develop further management strategies.
- Finally, Acer also evaluated whether value chain sites are located within other ecologically significant areas, including WWF Priority Ecoregions and the Taiwan Ecological Network (TEN). The analysis indicates that Acer will continue to strengthen suppliers' water resource and waste management practices to mitigate potential impacts on the natural environment. Furthermore, Acer has identified "Priority Areas of the Taiwan Ecological Network: Northwest IV and North IV" as priority monitoring areas. In 2025, Acer participated in the ESG project matching program promoted by the Forestry and Nature Conservation Agency of the Ministry of Agriculture and launched the "Coexistence with Forest Neighbors: Biodiversity Survey and Environmental Education at Mt. Dajian, Xizhi" project. By fostering collaboration among industry, government, academia, and the local community, Acer has utilized the forests surrounding its headquarters in Xizhi as a central hub to advance three key initiatives: biodiversity surveys, habitat restoration, and environmental education.
Risk Management
In 2025, Acer also conducted internal analysis of hot spots for impacts and dependencies on nature and biodiversity, and participated in the World Economic Forum (WEF) Tech Sector Working Group, contributing insights and practical experience on biodiversity impacts and dependencies, while strengthening awareness across the entire value chain regarding its reliance on, and impact upon, nature and biodiversity. Following the comprehensive analysis of Acer's significant value chain locations as part of our strategy, we further assess the overall value chain's impact and dependence on biodiversity, identifying significant risk indicators:
| Potential Material and Transformation Risks | Response | Derived Opportunities | |
|---|---|---|---|
| Water Shortage | Many electronic manufacturing processes heavily rely on water resources, particularly in the production of semiconductors and electronic components. Water shortages may cause suppliers to reduce or suspend production, affecting material supply. When water shortages occur, suppliers need to invest in water resource management and alternatives, increasing production costs, thus raising supply chain costs. | Acer's operational model primarily focuses on product sales and customer service, so it does not use large amounts of water resources. We collect water usage data through systematic management and implement water conservation measures at major operational sites, including water recycling and reuse, improved water equipment, and enhanced water management. Acer encourages suppliers to adopt circular water systems that recycle industrial water, reducing dependence on external water resources. We also investigate water risk conditions throughout the supply chain to ensure stable supply chain operations. | Acer encourages suppliers to adopt circular water systems or innovative watersaving technologies and production processes to reduce dependence on water resources. This approach may enhance production efficiency while lowering longterm costs, and simultaneously strengthen operational resilience against sudden water shortage situations.
Additionally, smart water storage projects are being developed within Acer Group's business units. |
| Typhoons and Natural Disasters | Natural disasters such as typhoons, extreme rainfall, or earthquakes can damage production facilities and local transportation infrastructure, leading to interruptions or delays in material supply. These disruptions affect production schedules and timely product delivery, ultimately impacting sales and customer satisfaction. Facility damage caused by natural disasters often requires substantial financial resources for repairs and reconstruction, increasing operational costs. In high-risk areas, especially those experiencing frequent disasters, insurance premiums may rise, adding hidden costs to business operations. | Acer operates with many of its own facilities and supply chain locations situated near the Pacific Ring of Fire or in major typhoon formation regions, making geographical vulnerability an unavoidable inherent condition. To address the impacts of earthquakes or extreme rainfall caused by typhoons, we regularly review the adequacy of existing insurance arrangements (such as global property/cargo insurance policies) to ensure that potential operational risks are appropriately transferred. We also continuously strengthen relevant damage prevention measures to minimize the potential financial impact from extreme storms and earthquakes. | Acer's subsidiary, Acer eDC, serves as a cloud service provider combining data center capabilities, hybrid cloud-edge security monitoring, and cloud backup services. The company offers comprehensive cloud integration consulting services, implementing geographically distributed backup solutions across various industry information domains. During major natural disasters, Acer eDC ensures that critical business operations remain unaffected by significant information system failures or catastrophic events, enabling continuous operations. Through data redundancy and off-site backup mechanisms, the company helps enterprise clients build resilience, ensuring rapid recovery and operational continuity even in extreme conditions, thereby securing sustainable business operations. |
| Extreme High Temperatures | Extreme high temperatures can increase electrical grid loads, potentially causing power interruptions or instability that impact productivity and operational stability. Rising temperatures necessitate increased use of air conditioning and cooling systems, elevating energy consumption and costs, thus raising overall operational expenses. Furthermore, regions where Acer's supply chain operates may experience production line disruptions due to heightened electricity demand, unstable power infrastructure, or insufficient reserve capacity, leading local governments to implement power restrictions or large-scale outages. These disruptions can adversely affect product shipments and financial performance. |
| Acer implements energy conservation initiatives to progressively reduce unnecessary energy consumption during operations. This approach not only decreases energy expenditures but simultaneously creates a more comfortable workplace. These improvements enhance employee satisfaction and productivity while reducing the company's carbon footprint and minimizing operational environmental impact. At supply chain production facilities, through the promotion of ESG scorecards and the Earthion initiative, over 70% of our key suppliers have implemented ISO 50001 energy management systems. These suppliers conduct annual energy conservation and carbon reduction projects, reducing the likelihood of suppliers transferring energy usage costs through price adjustments that could potentially affect product competitiveness. |
| Water Pollution and Waste | As environmental protection continues to gain prominence globally, suppliers are required to dedicate additional resources to comply with evolving environmental requirements, leading to increased operating costs. Suppliers’ failure to meet environmental standards may pose reputational risks to Acer and affect the stability of product supply. |
| Acer encourages suppliers to continuously improve production technologies and collaborates with them to develop highly circular and low-carbon materials. By deepening supply chain compliance management and material innovation, Acer can effectively mitigate operational risks, bolster brand trust, and attract environmentally conscious consumers. When other competitors face challenges due to environmental issues in their supply chain. Acer's ability to maintain compliance and advance supply chain improvements can help strengthen consumer support and create opportunities to capture market share. |
Metrics and Targets
Regarding Acer's dependence and impact on nature, the corresponding internal management indicators and objectives are as follows:
| Supply Chain Management Targets | Own Operations Management Targets | |
|---|---|---|
| Water Resource | Strengthen supply chain water and waste management. | Total water consumption in 2030 needs to be reduced by 10% compared to 2019. |
| Climate Change | By 2025, 80% of critical suppliers will commit to RE100 or set carbon reduction SBTs, and by 2030, value chain carbon emissions will be reduced by 35%. | In 2023, Acer committed to achieve the net-zero goal by 2050, set SBTs and product energy consumption targets, and a target of using post-consumer recycled plastics in core products, and released nine key net-zero strategies in three major aspects. We are committed to comprehensively reducing carbon footprint and emissions and mitigating our risks from carbon emissions in the three major strategic aspects of business operations, product services, and low-carbon supply chain. |
| Waste and Raw Material Usage |
| Total waste disposed in 2030 needs to be reduced by 10% compared to 2019. |