Energy Conservation and Carbon Reduction

Energy Conservation and Carbon Reduction

Implementation of the ISO 14001 Environmental Management System

Every year, Accton effectively identifies major environmental considerations based on the impact of production-related activities, products, and services on the environment, and builds an environmental management system accordingly. Accton’s main plants, including Plant 1, Plant 2, Zhunan Plant, and JoyTech have been certified by the environmental management system ISO 14001: 2015.

Implementation of the ISO 14001 Environmental Management System

Every year, Accton effectively identifies major environmental considerations based on the impact of production-related activities, products, and services on the environment, and builds an environmental management system accordingly. Accton’s main plants, including Plant 1, Plant 2, Zhunan Plant, and JoyTech have been certified by the environmental management system ISO 14001: 2015.

Environmental Management Performance and Energy Resource Management Measures:

Accton follows the ISO14001 standard to implement environmental protection operation control and obtains third-party verification. It is continuously updated every year to ensure compliance with standard specifications. The main plants of Accton have been verified. Please refer to the Accton Public Website for inquiries:

Accton’s climate management strategy follows the Task Force on Climate-Related Financial Disclosures (TCFD)

In 2021, an initial internal risk assessment will be conducted, and in 2022, external experts will be invited to provide guidance from risk assessment, risk opportunity ranking, result reporting, response strategies, and external disclosure, and produce a climate risk opportunity matrix and quantitative data.

Accton’s climate management strategy follows the Task Force on Climate-Related Financial Disclosures (TCFD)

In 2021, an initial internal risk assessment will be conducted, and in 2022, external experts will be invited to provide guidance from risk assessment, risk opportunity ranking, result reporting, response strategies, and external disclosure, and produce a climate risk opportunity matrix and quantitative data.

Items

Category

Description

Financial Impact

Response

Physical

Risks

Short-term

1. Typhoon/heavy rain

2. Water shortage/drought

Capacity interruption Employee unable to attend to work Supply chain interruptions

1. Each plant area in Taiwan has formulated early warning response plans for typhoons and floods.

2. In 2022, the main production plant in Taiwan – Zhunan Plant will introduce the ISO 22301 Business Continuity Management System, and regularly update the response measures.

Long-term

1. Average temperature rise

2. Sea-level rise

Higher infrastructure costs Increase in premiums

1. Site selection of the new Zhubei Plant should incorporate climate risks.

2. Reduce the risk of flooding: During the construction of the new Zhubei Plant, the design will be made according to the local climatic and physical conditions and the flood potential. The ground level of the first floor of the building will be raised to reduce the risk of flooding.

Transition

Risks

Policies & Regulations

1. Climate Change Law Amendments

2. Pricing of Greenhouse Gas Emissions

3. EU Carbon Border Adjustment Mechanism (CBAM)

Increase in expenses Cost escalation

1. Refine organizational carbon inventories to identify emission hotspots.

2. Evaluate the additional costs when network products are included in the CBAM control list.

Technologies

1. Replace existing products with low-carbon products

2. Cost of low-carbon technology transition

Investment in new raw materials and process development

1. Development of low-carbon products

2. Co-development of immersive network equipment with customers since 2021

Market

1. Customer demand for carbon reduction.

2. The market favors energy-saving products.

Increase in research and development costs of carbon reduction products

Early layout of new materials and technologies

Reputation

Impact on Corporate Image

1. Reducing the willingness of investors to invest

2. Higher loan interest rate

1. Disclose carbon reduction strategies, policies, and performance

2. Improve international rating scores

Opportunities

Energy Efficiency

Improve production efficiency.

Develop IOT equipment connecting to the energy management system to acquire business opportunities.

1. Improve the energy consumption of existing plants.

2. The Zhubei Plant adopts the green building design to reduce energy consumption.

3. Introduction of ISO 50001 Energy Management System to Zhubei Plant.

Sources of Energy

Use of low-carbon energy sources

Reducing carbon expenses

1. Focus on the Renewable Energy Certificate market

2. Set up rooftop solar energy

Products

Development of low-carbon products

Reduce carbon emissions at the product use stage to improve customer brand benefits.

1. Pay attention to international product energy conservation trends

2. Establish a product carbon footprint calculation system

Endurance

Participation in renewable energy source projects

Increase renewable energy sources

1. Assessing investment in renewable energy source market

2. Expand the proportion of renewable energy source used by supply chain partners

Since operating power is the main source of carbon emissions for the Company, the following improvement measures are to be implemented from 2022

Refine Inventory

Refine the electricity usage zone according to the purpose of use of the plant, set up electricity meters by zone, and upload electricity consumption information to the cloud to ensure control of the power consumption and power saving performance.

Production Optimization

Analyze possible anomalies according to the power consumption status of the production machine, identify abnormal power consumption hot spots, and make improvements.

Equipment Improvement

Equip high and low temperature testing equipment in the plant area, and evaluate and adjust the testing methods to reduce the energy consumption of heating and cooling.

Waste Output and Recovery Rate

Waste is mainly divided into two categories: non-recyclable and recyclable. Non-recyclable such as general waste, waste plastic mixtures, waste fibers or cloths, waste wood mixtures, other non-hazardous organic waste liquid or waste solvents, etc., are incinerated or thermally treated by qualified treatment plants. Recyclable waste, such as printed circuit board waste, waste paper, waste plastic, etc., is recycled by qualified vendors. 

Waste Output and Recovery Rate

Waste is mainly divided into two categories: non-recyclable and recyclable. Non-recyclable such as general waste, waste plastic mixtures, waste fibers or cloths, waste wood mixtures, other non-hazardous organic waste liquid or waste solvents, etc., are incinerated or thermally treated by qualified treatment plants. Recyclable waste, such as printed circuit board waste, waste paper, waste plastic, etc., is recycled by qualified vendors. 

Greenhouse gas emissions

ghg-emissions

Accton, Edgecore, and JoyTech implemented relevant energy conservation measures in 2021, with a total electricity saving of 428,640 MJ (119,066 kwh). 

Strictly manage the lighting and air conditioning in idle areas.

Control air-conditioning equipment, and adjust the start-up of main ice and water equipment according to the actual room temperature and production in the factory. 

The time control of the exhaust ventilation system is set to reduce the operation time during holiday nights. 

Accton, Edgecore, and JoyTech implemented relevant energy conservation measures in 2021, with a total electricity saving of 428,640 MJ (119,066 kwh). 

Strictly manage the lighting and air conditioning in idle areas.

Control air-conditioning equipment, and adjust the start-up of main ice and water equipment according to the actual room temperature and production in the factory. 

The time control of the exhaust ventilation system is set to reduce the operation time during holiday nights. 

Equipment Improvement in Energy Conservation

0
Total NTD$ invested in 2021
0 kwh
Electricity saved
0 tCO2e
Carbon Reduction

Items

Investment amount (NTD)

Annual electricity savings (kwh)

Annual electricity savings (MJ)

Annual carbon emissions reduction (tCO2e)

Added variable frequency equipment for the air conditioning units. 

100,000

16,931

60,953

8.50

Added variable frequency equipment for the exhaust turbines. 

90,000

15,325

55,171

7.69

Reduced operating hours of the toilet exhaust windmill.

10,000

13,310

47,916

6.68

Changed production line lighting from T8 to LED.

1,542,000

73,500

264,600

69.74

Sub-total

1,742,000

119,066

428,640

92.61

*Note: The electricity emission coefficient in Taiwan was based on Taipower’s electricity emission coefficient of 0.502 kg CO2e/kWh in 2021. The one at JoyTech was based on China Southern Power Grid’s 0.9489 kg CO2e /MWh in 2021. 

*Note: Results from Edgecore were included in the Plant 1 statistics. 

*Note: Related equipment improvements and energy conservation data were based on the Company’s own estimates.