Climate Change Data

Castles Technology Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:4,164.117 metric tons CO2e (Scope 1: 103.56, Scope 2: 726.49, Scope 3: 3334.07)
Scope 1 Emissions:103.5573 tCO2e
Scope 2 Emissions:726.4862 tCO2e
Scope 3 Emissions:3334.07 tCO2e
Renewable Energy Share:0%
Total Energy Consumption:5,006.87 GJ (Electricity: 4,968.46 GJ, Gasoline: 38.41 GJ)
Water Consumption:13.40 ML (Withdrawal)
Waste Generated:69.564 tons (E-waste: 7.664 tons, Domestic waste: 61.90 tons)
Carbon Intensity:0.602 metric tons of CO2e per million in 2023.

ESG Focus Areas

  • Environmental Stewardship
  • Social Responsibility
  • Corporate Governance

Environmental Achievements

  • Completed organizational carbon inventory following ISO 14064-1:2018 for Taiwan operations; planning to expand globally.
  • Reduced plastic in S1F2 POS device packaging by 88% and carton weight by 17% and volume by 16%.
  • Opened a new repair center in France to reduce transportation emissions and e-waste.

Social Achievements

  • Established a new plant and immediately invested in safety management, minimizing occupational accidents.
  • Conducted 6 labor-management talks and had 0 sexual harassment claims.
  • Completed 56 supplier audits.

Governance Achievements

  • Appointed Head of Corporate Governance in March 2023.
  • Established an Information Security Management Committee.
  • Established an independent legal department.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050.
Medium-term Goals:
  • Achieve 100% utilization of zero carbon emissions or renewable energy by 2050.
  • Complete carbon inventory of overseas business locations by 2025.
  • Pass ISO 45001 verification in 2025.
Short-term Goals:
  • Increase QRF satisfaction target to 94% in 2024.
  • Achieve ISO 27001 certification by 2024.
  • Complete Castles Technology carbon reduction blueprint plan by 2024.

Environmental Challenges

  • Supply chain disruptions due to geopolitical risks and increased transportation costs.
  • Increasing pressure for zero-emission products and stricter plastic restrictions.
  • Fragility of supply chains in achieving carbon emission reduction goals.
  • High employee turnover rates.
Mitigation Strategies
  • Strengthening local manufacturing in Taiwan and expanding pan-Asian manufacturing capacity.
  • Adjusting product production strategy based on customer feedback and regulations; improving product testing for extreme weather conditions.
  • Reducing and adjusting the use of disposable packaging materials; promoting supply chain sustainability improvement plan.
  • Improving employee education and training system; summarizing reasons for employee turnover and identifying areas for improvement.

Supply Chain Management

Supplier Audits: 56 audits in 2023

Responsible Procurement
  • Compliance with RoHS, EU Packaging Materials Directive, Battery Directive, REACH, and HSF regulations.
  • Requirement for suppliers to sign documents guaranteeing compliance with sustainable procurement standards.
  • Incorporation of ESG criteria into supplier evaluation and management processes.

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding of the plant due to short-term heavy rainfall.
Transition Risks
  • Increasing pressure for zero-emission products.
  • Stricter plastic restrictions and other sustainability-related regulations.
  • Fragility of the supply chain in consistently reducing carbon emissions.
Opportunities
  • Reduce energy consumption using research and development to increase product efficiency.
  • Customer demand for low-waste packaging is increasing.

Reporting Standards

Frameworks Used: GRI Standards (2021 edition), TCFD

Certifications: ISO 9001, ISO 14064:2018

Third-party Assurance: Price Water House Coopers

Sustainable Products & Innovation

  • S1U2 Android outdoor unmanned payment device with improved energy efficiency and durability.
  • SoftPOS software solution for mobile payment acceptance.