Climate Change and Greenhouse Gas Management
Climate Risks and Opportunities Management
In the face of the intensifying climate crisis and the international trend towards stronger environmental regulation, Nova Tech has responded proactively, particularly in its efforts to comply with the Climate Related Financial Disclosures (TCFD) framework. Nova Tech has not only analysed the risks and opportunities of climate change under the TCFD framework in 2022, but is also working to deepen its understanding and application of TCFD for future implementation into the International Financial Reporting Standards IFRS S1 and S2.
The introduction of IFRS S1 and S2 signals the international community's emphasis on transparency in climate-related financial information. These two standards integrate TCFD's core disclosure principles of governance, strategy, risk management, indicators and goals, with the aim of ensuring that Organizations not only incorporate sustainability and climate thinking into their senior management, but also integrate relevant risks and opportunities into their business strategies and establish appropriate risk management processes to track relevant key indicators and goals.
Taiwan's Financial Supervisory Commission (FSC) has announced that in the future, listed and over-thecounter companies will be required to comply with the IFRS continuous disclosure requirements. NovaTech is actively responding to this trend and preparing for the implementation of IFRS S1 and S2. Through continuous efforts, Nova Tech expects to find opportunities amidst the challenges of climate change, and with solid strategic planning and risk management, the company will ensure steady growth while contributing to
the sustainable development of the society. These actions not only demonstrate Nova Tech's commitment to a forward-looking approach to climate change, but also its overall commitment to operational and social responsibility.
I. Governance
Within the Organizational structure of Nova Tech, the Board of Directors serves as the highest level of oversight for climate change governance, ensuring that Nova Tech's strategy and actions on the major challenge of climate change are rigorously monitored and effectively promoted. The Board of Directors is responsible for overseeing the controls developed by the Sustainable Promotion Unit to ensure that NovaTech's operations and development strategies are aligned with its sustainability objectives.
The Sustainable Promotion Unit plays a central role in Nova Tech's Organizational structure, bringing together various coordinating groups to identify risks and opportunities associated with climate change. This process involves a detailed analysis of key climate risks and opportunities that could affect the company's operations, financial performance and reputation, and the development of corresponding strategies and management objectives. Through this process, Nova Tech is able to effectively integrate climate change considerations into our business decisions and long-term development plans.
After the identification of climate risks and opportunities and the development of strategic objectives, the Sustainable Promotion Unit will report the results to the Board of Directors. This step ensures that all climate-related management measures and objectives are reviewed and monitored by the Board of Directors, thereby strengthening the Organization's ability to respond to climate change issues. Through a rigorous Organizational structure and processes, Nova Tech is able to ensure not only sustainable growth, but also social and environmental responsibility in the face of the challenges of global climate change.
Nova Tech's Climate Governance Organization Chart
Nova Tech's Climate Governance and Internal Audit Flowchart
II. Strategy and Risk Management
Responding to and Managing Critical Climate Risks and Opportunities at Nova Tech
III. Indicators and Goals
Nova Tech expects its own operations and customers to successfully transform in the face of climate change, so as to implement sustainable development and corporate social
responsibility. In order to review climate risks and opportunities on a regular basis, Nova Tech has established indicators and goals to enable the Sustainable Promotion Unit to
review the effectiveness of control measures and to track achievement on an annual basis for the Board of Directors to monitor.
Greenhouse Gas Inventory
As the issue of climate change grows, Nova Technology Corp. needs to be proactive in addressing the issue in order to minimize its impact on itself and the environment. Although
not classified as a GHG regulated entity, Nova Tech conducts its own GHG inventories so that it understands its responsibilities and risks in relation to climate change issues. In accordance with ISO 14064-1 GHG Inventory Guidelines, Nova Technology Corp. conducted a GHG inventory consolidation using the operational control rights methodology and assessed significance based on the principle of significance. The results showed that Category 2 (Scope 2), Category 3 (Scope 3), and Category 4 (Scope 3) are significant indirect GHG emissions. Direct GHG emissions (Category 1) were 66.7647 tons of CO2e (21.26%). Category 2 (Scope 2) emitted 84.5096 tons of CO2e (26.91%). Category 3 (Scope 3) emitted 132.0869 tons of CO2e (42.06%). Category 4 (Scope 3) emitted 30.7179 tons of Co2e(9.78%).2e(9.78%). The total emission level was 314.0791 tons of CO2e.
Greenhouse Gas Inventory and Analysis at Nova Tech
As the issue of climate change grows, Nova Technology Corp. needs to be proactive in addressing the issue in order to minimise its impact on itself and the environment. Although
not classified as a GHG regulated entity, Nova Tech conducts its own GHG inventories so that it understands its responsibilities and risks in relation to climate change issues. In accordance with ISO 14064-1 GHG Inventory Guidelines, Nova Technology Corp. conducted a GHG inventory consolidation using the operational control rights methodology and assessed significance based on the principle of significance. The results showed that Category 2 (Scope 2), Category 3 (Scope 3), and Category 4 (Scope 3) are significant indirect GHG emissions. Direct GHG emissions (Category 1) were 66.7647 tonnes of CO2e (21.26%). Category 2 (Scope 2) emitted 84.5096 tonnes of CO2e (26.91%). Category 3 (Scope 3) emitted 132.0869 tonnes of CO2e (42.06%). Category 4 (Scope 3) emitted 30.7179 tonnes of Co2e2e (9.78%). The total emission level was 314.0791 tonnes of CO2e.
Energy Saving and Carbon Reduction Awareness and Action in 2023
