Act on Climate Change

Environmental Sustainability

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 / SDGs

AUO CSR EPS Goals	SDGs
E ENVIRONMENT Water Optimization Realize the goal of environmental sustainability through low-carbon production and resource recycling in the value chain	SDGs list
E ENVIRONMENT Energy Optimization Realize the goal of environmental sustainability through low-carbon production and resource recycling in the value chain	SDGs list
E Environmental Sustainability Climate Adaptation Realize the goal of environmental sustainability through low-carbon production and resource recycling in the value chain	SDGs list

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 194 millon tonnes in 2020 with 1.3% coming from green transport and logistics, 30% coming from green manufacturing and 68.7% coming from product innovation.

194

million tonnes CO₂e

product innovation 68.7%
green manufacturing 30%
green transport and logistics 1.3%

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

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Climate Change Governance

Organization

It was set up by the ESG and Climate Committee and was headed by VP of Manufacturing Group to monitor trends and integrate resources.

ESG and Climate Committee

Carbon Energy Working Group

Emission reduction

SDGs

Targets

Set reduction targets based on life-cycle and reduce carbon emissions by up to 6.5 million CO₂e cumulatively

Management Approach

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.

Risk Adaptation

SDGs

Targets

Increase the resilience of climate adaptation and continue to reduce the risk of financial impact from Climate Change issues

Management Approach

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.

Resource Platform

SDGs

Targets

Establish a platform for the sharing of internal and external resources to boost the incentives for technology and innovation

Management Approach

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.

CDP Commit to Action

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CDP 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 .