Climate Change Data

Transcend Information, Inc.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:4122.87 MTCO2e/year
Scope 1 Emissions:34.99 MTCO2e/year
Scope 2 Emissions:4,087.88 MTCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:29,391.72 GJ/year
Water Consumption:28.38 million liters/year
Waste Generated:216.84 tons/year

ESG Focus Areas

  • Corporate Governance
  • Economy
  • Environment
  • Social

Environmental Achievements

  • Energy intensity decreased by 3.97% compared to 2021. Saved 162,000 kilowatt-hours of electricity (a drop of 2%) and reduced carbon emissions by 168,639 kilograms (a drop of 4%).
  • Saved a total of 556,900 sheets of paper (a drop of 48%)
  • A total of 124,585 kilograms of resources were recycled.
  • DrivePro 20 dashcam reduced power consumption by 47% in power-saving mode.

Social Achievements

  • Sponsored a total of 75 students in three elementary school baseball teams. The total sponsorship amount was NT$ 4,450,000
  • 95.8% of senior executives are employed from the local residents
  • The proportion of female employees is 49.9%, and the proportion of female executives is 15.2%
  • The total training hours for education and training at the Taiwan headquarters is 3,897 hours
  • Customer satisfaction survey results indicate a 93% satisfaction rate
  • There were 0 cases of occupational accidents
  • Talent Consensus Camp held for R&D and sales teams with high participation and positive feedback.
  • Employee Stock Trust Plan implemented.

Governance Achievements

  • The proportion of female directors (including 1 independent director) is 22%
  • A total of 54 hours of director training were completed
  • A total of 149 participants attended intellectual property-related courses
  • A total of 44 domestic and international suppliers were added, and the signing rate of the "Supplier Code of Conduct" was 100%

Climate Goals & Targets

Long-term Goals:
  • Continue to implement policy transparency (7 years or more)
  • In response to climate change and the trend of global awareness of energy conservation and sustainable development, we are replacing environmentally-friendly and energy-efficient equipment within the company to achieve carbon reduction (7 years or more)
  • Collaborate with suppliers and customers to organize supply chain activities that contribute to society and promote environmental friendliness (7 years or more)
  • 70% of the products (including packaging) will be halogen-free (excluding battery materials) (7 years or more)
Medium-term Goals:
  • The common goal is to achieve sustained growth and profitability. (1) Establish a sustainable supply chain, implement global expansion and localization strategies to enhance competitiveness, maintain global market share. (2) Constantly develop energy-saving products and reduce pollution to fulfill corporate social responsibility (over 3 years)
  • Continuously improve the ranking in corporate governance evaluations (3 years to 7 years)
  • Review the efficiency decline and power consumption of equipment in the factory area, such as chiller units and large-scale air compressors (3 years to 7 years)
  • Continuously establish a mechanism for greenhouse gas inventory and external verification, set reduction targets, and implement corresponding plans (3 years to 7 years)
  • Organize a supplier conference to recognize outstanding suppliers (3 years to 7 years)
  • The halogen content of product packaging materials is reduced to 100% halogen-free (3 years to 7 years)
Short-term Goals:
  • Develop carbon reduction and green energy-related products, and enhance their sales quantity (within 3 years)
  • Continuously improve the ranking in corporate governance evaluations (within 3 years)
  • Enhance employees' awareness of energy conservation and carbon reduction (within 3 years)
  • Establish a mechanism for greenhouse gas inventory and external verification, set reduction targets, and implement corresponding plans (within 3 years)
  • Maintain a fulfillment rate of signing Commitment of Supplier for Business Integrity above 95% (within 3 years)
  • 30% of product components (primarily PCB) are replaced with halogen-free materials (within 3 years)

Environmental Challenges

  • Global pandemic and market conditions led to a decline in business performance compared to 2021.
  • International logistics congestion and disruptions in industries such as raw materials and semiconductors affected the global market supply-demand balance and resulted in continuous price declines.
Mitigation Strategies
  • Transcend swiftly adjusted its strategies, actively reduced the stock level, maintained stable supply through efficient production, and achieved robust operational performance with the efforts of all employees.
  • Quickly adjusted procurement strategy and actively reduced inventory to ensure stable supply and efficient production.

Supply Chain Management

Supplier Audits: 24/year

Responsible Procurement
  • Supplier Code of Conduct
  • Commitment of Supplier for Business Integrity
  • Conflict Minerals Reporting Template (CMRT)
  • Environmental Compliance Certificate
  • BSCI (Business Social Compliance Initiative)

Climate-Related Risks & Opportunities

Physical Risks
  • Tropical cyclones (typhoons)
  • Extreme rainfall
Transition Risks
  • Government carbon levy
Opportunities
  • Developing and/or expanding low-carbon products and services
  • Improving resource efficiency and cost savings
  • Adopting low-carbon energy sources
  • Developing new products and services
  • Entering new markets
  • Enhancing supply chain resilience

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD, UN SDGs

Certifications: ISO 9001, ISO 14001, QC 080000, ISO 45001, CNS 45001 (TOSHMS), IATF 16949:2016

UN Sustainable Development Goals

  • Goal 4 (Quality Education)
  • Goal 5 (Gender Equality)
  • Goal 10 (Reduced Inequalities)
  • Goal 16 (Peace, Justice and Strong Institutions)
  • Goal 17 (Partnerships for the Goals)

Initiatives such as the Rural Baseball Seed Project, gender diversity in the workforce, local employment, stakeholder engagement, and supply chain resilience contribute to these goals.

Sustainable Products & Innovation

  • DrivePro 20 dashcam with energy-saving design
  • Very Low Profile memory modules

Awards & Recognition

  • Taiwan Excellence Award (18 years)
  • Taiwan's Top 25 International Brands (16 consecutive years)
  • Sports Promoter Award (9 consecutive years)
  • Sponsorship Bronze Award
  • Long-Term Sponsorship Award
  • Taiwan Excellence Gold and Silver Quality Award (5 products)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:4199.74 MtCO2e
Scope 1 Emissions:33.63 MtCO2e
Scope 2 Emissions:4166.11 MtCO2e
Renewable Energy Share:0%
Water Consumption:29.15 million liters
Waste Generated:195.21 metric tons
Carbon Intensity:0.40 MtCO2e/NT$ million of revenue

ESG Focus Areas

  • Corporate Governance
  • Environmental Sustainability
  • Social Welfare
  • Information Disclosure on Corporate Social Responsibility

Environmental Achievements

  • Reduced carbon emissions by 10% at HQ and 0.88% at factories compared to 2020.
  • Reduced electricity consumption by 8% at HQ and increased by 2.72% at factories compared to 2020.
  • Reduced paper usage by 45% compared to 2020.
  • Improved DrivePro 10 power consumption by 13.6%
  • Recycled 111,045 kilograms of resources (10.87% decrease compared to 2022).

Social Achievements

  • Held 4 labor-management meetings and welfare committee meetings.
  • Held 41 educational training courses with 2,472 participants.
  • Conducted 6 occupational safety and health trainings with 1,132 participants.
  • Achieved 94.5% customer satisfaction rate.
  • 855 individuals underwent general health check-ups costing NT$1,030,000.
  • Employee Stock Ownership Trust program introduced.

Governance Achievements

  • Completed 59 hours of director training.
  • Achieved 97% Board member meeting attendance rate.
  • 22% of directors are female (including 1 independent director).
  • 228 participants attended intellectual property-related courses.

Climate Goals & Targets

Long-term Goals:
  • Continue to implement policy transparency (7 years or more).
  • Utilize power-efficient components to reduce product power consumption and extend lifespan. It is hoped that products can reduce 10% of power by 2030 (7 years or more).
  • Achieve zero greenhouse gas emissions at all operational sites by 2050 (7 years or more).
Medium-term Goals:
  • The common goal is to achieve sustained growth and profitability. (1) Establish a sustainable supply chain, implement global expansion and localization strategies to enhance competitiveness, maintain global market share. (2) Constantly develop energy-saving products and reduce pollution to fulfill corporate social responsibility (over 3 years).
  • Continuously improve the ranking in corporate governance evaluations (3 years to 7 years).
  • Reduce the use of plastic and paper in product packaging and adopt an integrated packaging design to achieve the goal of reducing plastic waste and promoting environmental sustainability. 2026 goal for packaging reduction: 10%, 2028 goal: 30% (3 years to 7 years).
  • Using 2020 as the base year, set a goal to achieve a 7% reduction in carbon emissions by 2026. The parent company will complete the greenhouse gas inventory by 2026 and achieve verification by 2028; subsidiaries will complete the inventory by 2027 and achieve verification by 2029 (3 years to 7 years).
Short-term Goals:
  • Develop carbon reduction and green energy-related products, and enhance their sales quantity (within 3 years).
  • Continuously improve the ranking in corporate governance evaluations (within 3 years).
  • Arrange comprehensive training for the Board of Directors on net zero sustainability (within 3 years).
  • Utilize halogen-free (HF) PCBs, the utilization rate will reach 50% by 2025, and 100% by 2027.
  • Conduct a total of 8 audit sessions for waste management vendors (within 3 years).

Environmental Challenges

  • Weak market due to COVID-19 pandemic, Russia-Ukraine war, and regional trade conflicts.
  • Higher technology requirement in green product development, resulting in higher cost.
  • Fewer vendors to choose when procuring green components, leading to supply shortage risk.
  • Facing rising carbon prices and emission restrictions, Transcend may encounter additional costs.
  • Extreme weather events triggered by climate change could lead to production disruptions and asset losses.
Mitigation Strategies
  • Good procurement strategies and inventory control.
  • Strengthened product marketing strategies.
  • Adjusted procurement strategy and actively reduced inventory.
  • Implemented projects to ensure stable supply, efficient production, and meticulous pricing strategies.
  • Replacing equipment to reduce energy costs and carbon emissions to minimize government carbon levy.
  • Purchasing insurance to mitigate costs of damages from extreme weather.
  • Developing various green energy products.

Supply Chain Management

Supplier Audits: 30 suppliers evaluated in 2023, 100% qualification rate.

Responsible Procurement
  • Supplier Social Responsibility Commitment
  • Environmental Compliance Certificate
  • Commitment of Supplier for Business Integrity
  • Prohibition of using conflict minerals
  • Preference for suppliers with relevant management system certifications

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather conditions (typhoon, drought, flood)
Transition Risks
  • Government carbon levy
Opportunities
  • Developing/expanding low-carbon products and services

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD, UN SDGs

Certifications: ISO 9001, ISO 14001, QC 080000, ISO/CNS 45001, IATF 16949:2016

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 8
  • SDG 10
  • SDG 12
  • SDG 16
  • SDG 17

Initiatives contributing to these goals are detailed in Chapter 12.

Sustainable Products & Innovation

  • DrivePro 70 body camera (36% power consumption reduction)
  • Energy-saving memory modules

Awards & Recognition

  • Taiwan Excellence Award (19 consecutive years)