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Climate Risk Management
Ability ESG Development Committee has formulated the current response strategy and action plan for the identified climate-related risks and opportunities. The main directions include climate change mitigation and climate change adaptation. Mitigation strategies include energy conservation and energy conversion, which are achieved through energy management, process optimization, and plant operation improvement. At the same time, we have formulated climate change adaptation strategies, identifying climate risks and opportunities, strategically planning low-carbon products and automated energy-saving technologies to reduce the impact of climate change, and aiming to reduce greenhouse gas emissions and achieve net zero emissions.
Responding strategy and action plan
| Risks/ Opportunity | Type | Description | Responding Strategy and Action Plan |
|---|---|---|---|
| Risk | Physical risk | Increased severity of extreme weather events(i.e.,typhoons, floods, heavy rains) | 1. Make pre-arrangements for dredging work before the typhoon season; require property management personnel of the building to propose a typhoon control plan when the land typhoon alert is issued, prepare for typhoon control (i.e., piling sandbags, fixing trees, and checking whether doors and windows are closed), and carry out patrol inspections; make immediate processing if there is any abnormal status to minimize impacts of the disaster. 2. For power suspension, power outage, windstorm disaster, and flood, immediately form an emergency response team to keep abreast of the latest development and the issue relevant matter of notice at all times, attach attention to whether there is any personnel injury, and check whether the buildings and equipment/facilities are damaged. 3. If the shipping schedule to customers may be delayed as the delivery of materials by suppliers is affected, Ability will immediately negotiate with customers to handle the shipping schedule and ensure the short-term effects. Carry out the second source evaluation and introduction plan for materials that are materially affected and continue to update the material evaluation surveys of suppliers who are under effects until the shortage of materials is eliminated. |
| Transformation risk | Enhance GHG Emission Pricing | 1. Improve energy efficiency and reduce emissions: Replace old model A/C to improve energy efficiency; reduce emissions by consolidating testing workstations to optimize production procedures and expanding the use of renewable energy. 2. Promote green supply chain: Ability estimates to reduce the carbon dioxide emissions of the supply chain by guiding suppliers to adopt green designs, clean production, and energy-saving and carbon dioxide reduction approaches. |
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| Mandatory climate disclosure and reporting | 1. Ability complies with relevant laws and regulations on carbon reduction and product energy efficiency, keep abreast of changes and updates in laws and regulations, and adjust its net zero planning schedule in a timely manner to ensure that Ability's operations comply with laws and regulations. 2. Introduce various management systems, strengthen ESG management performance in all aspects, conduct GHG inventory and other climate information verification every year, disclose climate information through annual sustainability reports, websites and other platforms, and actively respond to stakeholders' expectations. |
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| Changing customer behavior data | 1. Study the annual sustainability reports of major customers to understand their requirements or environmental preferences to facilitate the planning of subsequent product designs. 2. In the future, Ability will adopt product designs in response to climate change as product features by placing emphasis on major sales customers (i.e., comply with local energy efficiency specifications or satisfy customers’ green procurement policies) so as to reinforce the awareness of customers regarding the energy-saving and carbon dioxide reduction products of Ability Enterprise. |
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| Opportunity | Products and services | Develop or add low-carbon products and services | 1. Take the initiative to develop low-carbon and energy-saving images and automotive product samples, seek relevant customers with low-carbon or energy-saving requirements, and discuss the subsequent cooperating product schedule. 2. Use parts and materials complying with low-carbon and energy-saving requirements to achieve the requirements of different low-carbon or energy-saving labels. |
| Products and services | R&D and innovation to develop new products and services | 1. Regarding product development, the Company examines design and verification procedures, selects environmentally friendly materials and recyclable materials and parts of low power consumption for designs in general, and reduces the number of parts selected for use. 2. Establish product development procedures and standards, record development history, and subsequently examine procedure simplification. |
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| Market | Consumer preference changes | 1. In the future, Ability estimates to carry out the investigation planning for climate change-related requirements in the market and sort the priority of products preferred by consumers. 2. Ability will focus on customers for development. Except for standard functions, the R&D for image applications will include low-carbon, energy-saving, and environmentally friendly concepts to improve the philosophy of green products. |
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| Market | Develop new markets | Ability estimates to focus on existing customers from 2023 to 2025, including smart image applications, smart analysis, 360o image products, video appliances, and automotive modules as target products, and add low carbon, energy-saving, and function-improving technologies to expand its market share. | |
| Resource consumption efficiency | Use more efficient production and distribution processes | 1. Ability optimizes and improves the operation and implement error-proofing to improve product production efficiency. 2. Ability will develop our own process test platform, integrate test items and improve the variable combination of test items, increase the proportion of automated/semi-automated testing, and reduce manual work hours. |