Climate Action and GHG Management

Compal actively embraces this trend and comprehensively implements climate governance and carbon management mechanisms.

The Company continuously monitors the evolution of international sustainability disclosure standards, has established climate risk and opportunity management mechanisms based on the TCFD framework, and periodically identifies climate impacts and response strategies. With the IFRS Foundation’s release of IFRS S1 and S2 sustainability disclosure standards, Compal refers to ISSB climate disclosure requirements, evaluates the compliance of internal information systems and disclosure mechanisms, and plans to gradually align with Taiwan’s FSC’s regulations and international standards.

Since 2022, Compal has initiated a group-wide greenhouse gas reduction strategy and gradually developed short-, medium-, and long-term decarbonization pathways through actions to realize energy-efficient and low-carbon operations.Compal actively responds to international initiatives and has set Science Based Targets aligned with the 1.5°C scenario, laying a concrete foundation for its path toward net-zero emissions. In 2024, Compal officially joined RE100 and committed to using 100% renewable energy by 2050 to achieve zero-carbon operations. The Company’s decarbonization efforts prioritize “Purchased Goods and Services” and the “Use of Sold Products,” actively addressing Scope 3 emissions and aligning with global trends in product lifecycle decarbonization. 

In addition, Compal actively implements natural capital governance and encourages value chain partners to jointly protect biodiversity and forest conservation. We have issued our Biodiversity and No-Deforestation Policy, which applies to all subsidiaries worldwide in which Compal holds a controlling interest of over 50%. This demonstrates the Company's strong commitment to its responsibility in nature conservation.

In 2024, Compal achieved a “Management Level” rating in both the CDP Climate Change and Water Security questionnaires, reflecting continuous improvement and external recognition of its climate and water resource risk management capabilities.

In accordance with the Financial Supervisory Commission’s (FSC) “Sustainable Development Action Plans for TWSE- and TPEx-Listed Companies,” enterprises are required to disclose the results of their greenhouse gas (GHG) inventories and reduction efforts, covering the entities within their consolidated financial statements.

Compal recognizes climate change as a significant challenge to business operations and a core concern for international supply chains. In 2024, Compal completed a comprehensive GHG inventory for all subsidiaries within its consolidated reporting scope, in compliance with ISO 14064-1: 2018. The results were verified by an independent third party, underscoring Compal’s commitment to information transparency and sustainability responsibility.

These targets are defined within the boundary of the consolidated financial statements and outline clear short-, medium-, and long-term decarbonization pathways, moving toward the goal of net-zero emissions by 2050. 

In consideration of differences in data availability and governance boundaries across emission scopes, Compal has established the following reduction pathways: 

• Scope 1 and Scope 2: Baseline year: 2019

   o Baseline emissions: 369,033.14 tCO₂e
   o Medium-term target (by 2030): 50.68% reduction from the baseline year. 
   o  Long-term target (by 2050): 90% reduction from the baseline year, with residual emissions neutralized through carbon offsets. 

• Scope 3: 

   o Baseline year: 2021 
   o Medium-term target (by 2030): 25% reduction 
   o Long-term target (by 2050): 90% reduction
Compal will continue implementing greenhouse gas reduction projects across internal operations and the value chain, including equipment efficiency improvements, renewable energy adoption, low-carbon procurement promotion, and product carbon footprint assessments, to progressively achieve its RE100 and net-zero emissions goals by 2050. 

Since 2010, Compal has implemented ISO 14064-1 greenhouse gas inventories with external verifications, thus establishing a comprehensive greenhouse gas management system. To align with the latest international standards and scientific evidence, since 2023, Compal has fully adopted the Global Warming Potential (GWP) values from the IPCC’s Sixth Assessment Report (AR6 WG3) published in 2022. Fuel emission factors are primarily based on the IPCC 2006 Guidelines, along with government-announced energy consumption values for each operating site. Electricity emission factors are calculated using government-announced values for each operating site to enhance data accuracy and comparability. 

Per the “GHG Protocol”, Scope 1 includes direct emissions from owned or controlled sources, Scope 2 includes indirect emissions from purchased electricity, and Scope 3 includes other indirect emissions (e.g., supply chain and product use phase).

For the entity-level reporting boundary, the following Scope 3 categories have been verified: 

o Category 1: Purchased goods and services – indirect emissions from the life cycle of operational water use: 379.547 tCO₂e.
o Category 3: Fuel- and energy-related activities: 101,155.099 tCO₂e.

In 2024, biogenic CO₂ emissions from biomass combustion amounted to 15.2963 tCO₂e. Compal’s total Scope 1 and Scope 2 emissions, calculated
using the market-based approach, were 107,880.570 tCO₂e, representing a 64.2% reduction compared to the 2019 baseline level of 301,471.351 tCO₂e.
Using the location-based approach, total emissions in 2024 reached 173,709.419 tCO₂e, showing a significantdownward trend, primarily attributable to the following
factors:
  o Improved energy efficiency: Increased to 7 ISO 50001-certified sites.
  o Expanded renewable electricity procurement:Totaling 130,744.6 MWh.
oEnergy-saving projects and process optimization: See the Energy-Saving Production chapter for details.The nature of the industry means most of Compal’s GHG emissions are concentrated in externally purchased energy.

To reduce GHG emissions in 2024, Compal procured 8,066.9 MWh of photovoltaic energy, 28,251.7 MWh of hydropower, and acquired 94,426 renewable energy certificates (RECs). Compal is there working hard to realize the target of GHG emissions reduction by 2030.