Act on Climate Change
Taking climate action, systematic forward-looking management
In the face of global climate change and to keep the temperature rise below 2℃, we look at corporate growth risks and potential market opportunities and we actively prepare for and face the challenges.
AUO CSR EPS Goals | SDGs |
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E
ENVIRONMENTWater OptimizationRealize the goal of environmental sustainability through low-carbon production and resource recycling in the value chain |
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E
ENVIRONMENTEnergy OptimizationRealize the goal of environmental sustainability through low-carbon production and resource recycling in the value chain |
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E
Environmental SustainabilityClimate AdaptationRealize the goal of environmental sustainability through low-carbon production and resource recycling in the value chain |
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Carbon 2020
In 2015, the Carbon 2020 plan to reduce carbon emissions by 1 million tonnes over 5 years was proposed. A product life-cycle approach was to be taken to reduce carbon emissions through materials design and selection, localized purchasing and 4R strategy, energy-saving production, green transport and low-power panels. Cumulative progress reached 142 millon tonnes in 2019 with 2% coming from green transport and logistics, 29% coming from green manufacturing and 69% coming from product innovation.
- product innovation 69%
- green manufacturing 29%
- green transport and logistics 2%
SDGs 2025 carbon reduction target
The impact of climate change on the world's regional economies, countries, industries and even individuals has become increasingly deep and serious. Therefore, in the SDG13 climate action target of 2025, AUO set a both direct and indirect active carbon redcution goal: The emission reduction target is based on life cycle, continue to reduce carbon emissions by a cumulative 6.5 million tonnes of CO2e. It is expected by expanding the scope of impact and driving more active carbon reduction efforts to allow the organization moving toward smart manufacturing technology enhancement and product / service transformation, and attending the absolute carbon emissions reduction by the entire organization.
Climate Change Governance
more detailsClimate Change Governance
Organization
It was set up by the CSR Committee and was headed by VP of Manufacturing Group to monitor trends and integrate resources.
Set reduction targets based on life-cycle and reduce carbon emissions by up to 6.5 million CO2e cumulatively
Respond to the global consensus on climate change through reduction targets based on life cycles. In addition to organizational carbon reduction targets, embrace carbon emission management that encompasses the Scope 3 value chain including supplier reduction, design of low-energy products, materials reduction and other elements.
Increase the resilience of climate adaptation and continue to reduce the risk of financial impact from Climate Change issues
Conduct an inventory of risks and opportunities associated with climate change using the TCFD framework including supply chain disruption management due to physical risks, market strategies for transformation risks and monitoring of regulatory trends. Identify and respond to potential financial losses in advance through a systematic identification process.
Establish a platform for the sharing of internal and external resources to boost the incentives for technology and innovation
Build consensus on climate change action among all employees by establishing performance rewards, professional training and system platforms for energy-saving and carbon reduction. Engage with external stakeholders to create more opportunities.
Policies
AUO has defined four key strategic directions in climate change management: Transparency, Action, Responsibility and Cooperation.
Risk and Opportunity
more detailsRisk and Opportunity
Climate change has global and local administrative and economic impacts. As a benchmark company, we expect ourselves to lead our supply chain partners in creating a resilient value chain, by raising implementing climate adaptation and resilience. From a financial impact management perspective, we will continue to pursue green growth and emerging opportunities.
Flowcharts
The Task Force on Climate-related Financial Disclosures (TCFD) is defining the transformation and physical risks. Each year the sizes of the risks and opportunities is reviewed.
Financial impact
We focus on key themes and when needed we assess the financial impacts and plan operational strategies, which are announced by the Chief Financial Officer in a comprehensive report.
Opportunities and management of climate risk
Transformation Risk
Stakeholder | Challenges and Opportunities | Management Approach |
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AUO
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National carbon reduction commitments and policies will not only boost low-carbon production and the development of green products but also increase the responsibility and risk of carbon reduction
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Stakeholder | Challenges and Opportunities | Management Approach |
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AUO
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Implementation is planned by Taiwan EPA. Most AUO manufacturing sites will soon face emission controls that increase the operating costs.
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Stakeholder | Challenges and Opportunities | Management Approach |
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AUO, Customer
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Increase in international demand for renewable energy, policies and the requirements of the green supply chain now require the installation or use of renewable energy
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Stakeholder | Challenges and Opportunities | Management Approach |
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AUO,
Customer |
Customer requirements for green products exceed that of local and international regulations. Stakeholders expect better environmental protection performance from the enterprise.
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Stakeholder | Challenges and Opportunities | Management Approach |
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Investor
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Rise of ESG investment where investors select their investment products based on non-financial performance indicators
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Physical Risk
Stakeholder | Challenges and Opportunities | Management Approach |
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AUO
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Changes in rainfall would cause a prolonged period of water shortage and present challenges to production water supply
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Stakeholder | Challenges and Opportunities | Management Approach |
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Supply Chain
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Develop the ability of the supply chain to adapt to or mitigate heightened probability and severity of disasters such as storms, floods and droughts
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Strategic planning and risk management
Risk
Opportunity
Financial Impact
Opportunity
Stakeholder | Challenges and Opportunities | Management Approach |
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AUO, Customer, NGO
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Reduce dependence on water resources through manufacturing transformation to realize the vision for sustainability
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Stakeholder | Challenges and Opportunities | Management Approach |
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AUO
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Investment in the solar business and promote market for green power
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Provide an integration ability for the construction of turn-key solar power plants
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Stakeholder | Challenges and Opportunities | Management Approach |
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AUO, Customer
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Track market trends to ensure continuity of supply then satisfy customer requirements to improve satisfaction with sustainable products and services
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Stakeholder | Challenges and Opportunities | Management Approach |
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AUO, Banks, Shareholders
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Investors invest in ESG or solar-related businesses in accordance with green finance and Equator Principles
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CDP Commit to Action
more detailsCDP Commit to Action
In response to CDP Commit to Action, we pro-actively participate in the CDP investors questionnaire response, and we reported with sincerity and transparency our climate change response measures, including a climate change governance strategy, risk identification and opportunity analysis, information regarding greenhouse gases emission volumes, reduction goals and performance, etc. Concurrently, from 2012 onward, we have concretely responded to CDP water with regard to risks and opportunities presented by global climate change and water resources .
A- grade Leader Board for Supplier Engagement Rating (SER)
B rating for water disclosure in the Management Grade of CDP
B rating for climate change disclosure in the Management Grade of CDP
Value Chain Emissions Management
Under its green management strategy, AUO endeavors to reduce its greenhouse gas emissions.
more detailsCarbon Asset Management
Autonomous advocacy Prom carbon neutralization, creating a common prosperity circle of a low-carbon society.
more details