RichWave has always paid attention to environmental protection, striving to reach a balance between corporate operations and co-prosperity/co-existence with the environment by launching electronic products featuring exceptional performance and green concepts. Consequently, while materializing the environmental management policy and controlling the environmental impact of our operations, we also pro-actively engage in supply chain and environmental management, supervising and guiding our supply chain partners to fulfill their environmental responsibilities in a bid to create a green semiconductor value chain.

Climate Change

Faced with increasing global warming, RichWave is aware that climate change is an urgent issue that must be addressed. The World Economic Forum (WEF) released its latest Global Risks Report in 2024, identifying “Extreme weather events,” “Critical change to Earth systems,” “Biodiversity loss and ecosystem collapse,” and “Natural resource shortages” as the top four global risks for the next decade. In light of this, governments worldwide are gradually implementing compulsory regulations that demand businesses to conduct financial impact analysis based on the Task Force on Climate-related Financial Disclosures (TCFD). Since 2024, Taiwan's Financial Supervisory Commission (FSC) has required all TWSE- and TPEx-listed companies to disclose nine key pieces of climate change-related information in their annual reports.

To align with international trends and regulatory requirements, RichWave initially adopted the TCFD framework in early 2022. This framework structures climate governance around governance, strategy, risk management, and metrics and targets. We have established emission reduction plans with phased targets and identified potential financial impacts from climate-related risks and opportunities. Furthermore, we have developed corresponding strategies and actions to strengthen climate adaptation resilience. In 2023, we expanded our assessment of climate risks and opportunities, inviting more departments to participate. This allowed us to thoroughly consider their actual and potential financial impacts on the Company. RichWave has participated in the CDP questionnaire and disclosed its results since 2023. In the 2024 CDP SME (Small and Medium Enterprise) climate change questionnaire, it received a B (Management Level) rating, the highest level achieved by SMEs.

The 4 Core Elements of TCFD

1. Governance

RichWave has established a Business Continuity Plan (BCP) Management Office as a dedicated unit to manage climate-related risks and opportunities. Supervised by the Board of Directors, it annually evaluates climate risks and opportunities, and formulates and implements response strategies and action plans. The President serves as the General Convener, with the Worldwide Logistics Office acting as the coordinating unit responsible for policy formulation, action planning, and communication. A “Climate Change Risk Response Team is established under the Office,” comprising an Event Investigation Team, a Supply Chain Team, a Support Team, and a Mobile Team. Representatives from various business departments participate to facilitate cross-departmental communication and coordination, and the annual results are reported to the Board of Directors.

RichWave’s Climate Governance Organizational Structure

2. Risk Management

RichWave’s climate risk management is based on a business continuity management model, comprehensively assessing potential climate risks related to policies, regulations, and technologies, and formulating response measures. After each business unit identifies important climate risks and opportunities, the Climate Change Response Team plans corresponding strategies and measures, incorporating them into the Company’s general risk management mechanism to normalize climate issue management and ensure effective monitoring and response to the challenges of climate-related issues.

RichWave’s Key Climate Risk and Opportunity Evaluation Procedure

3. Strategy

1. Identification Climate Risks and Opportunities

In 2023, we assessed RichWave’s industry characteristics and development trends based on the current operations of each department. We also explored various strategic development directions, taking into account local regulatory developments and the geographical characteristics of our business locations. As a result, we preliminarily identified 12 climate-related risks and opportunities relevant to RichWave, including five transition risks, two physical risks, and five opportunity-related topics.

RichWave’s Risks and Opportunities

2. RichWave’s Material Climate Risks and Opportunities

The three material climate risks and opportunities identified by RichWave this year include mandatory regulations for products and services, developing new markets, low-carbon products, and innovative services. We analyze the potential and actual impact of climate risks and opportunities on the Company, basing our assessment on current market conditions, international trends, and external research reports. We also review our resource allocation and future business development to formulate appropriate response strategies.

Financial Impact Evaluation and Adaptation Measures for RichWave’s Material Climate Risks and Opportunities

3. Quantification the Financial Impact of Climate Risks and Opportunities

RichWave has quantified and analyzed a key topic selected from physical risks, transition risks, and opportunities, and used the impact pathway method to assess the impact of climate risks and opportunities on its operations. It has also developed potential quantification methods and calculated the financial impact of each climate topic to ensure stakeholders fully understand these impacts and their consideration in financial planning.

4. Metrics and Targets

RichWave regularly monitors the development of material climate risks and opportunities, and formulates corresponding management metrics and targets. We have set targets for emission reduction, water conservation, power saving, and waste reduction, and planned renewable energy use programs. We have also expanded relevant management requirements to our supply chain partners to jointly promote environmental sustainability. We will regularly monitor the achievement of various metrics and report it to the Board of Directors, and continue to optimize and improve various management measures to enhance the Company's climate resilience.

GHG Management

Operational GHG Management

Since June 2022, RichWave has introduced the ISO 14064-1:2018 GHG management system and obtained third-party verification. We have adopted the operational control approach to conduct a Scope 1, 2, and 3 GHG inventory for our Taiwan locations, actively promoting various GHG emission reduction measures based on the inventory results, and setting a reduction target of 3% for Scope 1 and Scope 2 GHG emissions by 2028, compared to the 2022 baseline year. The Company does not have energy- intensive equipment or production processes, and purchased electricity accounts for the majority of its energy consumption. Please refer to 5.2 Energy Management for details on GHG reduction initiatives. RichWave’s Scope 1 GHG emissions in 2024 were 19.9100 tCO2e, a decrease of 2.5% compared to 2023. Scope 2 GHG emissions were 535.0735 tCO2e, a 0.6% increase compared to 2023. The emission intensity of Scope 1 and Scope 2 is 0.1509 tCO2e/ million operating revenue, a decrease of 22.9% compared to 2023. The main reason for the increase in Scope 2 is a 17% increase in purchase and sales volume compared to the previous year, which led to increased electricity consumption during operations and a 16% increase in public electricity consumption in the Taipei leased office building compared to the previous year.

For 2024, the Company’s Scope 3 emissions inventory was evaluated based on the principle of materiality. The categories inventoried include Category 3 and Category 4 emission activities such as upstream product transportation, downstream product transportation, employee commuting, raw material extraction, manufacturing and processing, as well as the disposal of solid and liquid waste. In 2024, Scope 3 GHG emissions totaled 200.4103tCO2e, equivalent to a 12.4% decrease compared to 2023. In particular, emissions from employee commuting were identified as the primary indirect GHG emission source.

Other Indirect GHG Emissions Management

RichWave's business operations include IC R&D, design and sales, where product manufacturing is completely reliant on the processing of our supply chain partners. The supply chain is an important link in mitigating product life cycle carbon emissions, hence we stress scope 3 GHG management and vigorously promote the reduction of GHGs outside of the organization's business scope. Through continuous refinement, increasing the performance of our high-power, energy-efficient products, and implementing supply chain energy management, we can minimize the carbon footprint of various terminal electronic products. In doing so, the company will be able to attain the sustainability of energy resources while offering consumers high-performance, high-quality products.

1. Green Product Desig

We have taken the environmental impact of the products' life cycle during the IC design stage and continue to facilitate innovations in energy- saving designs. Besides effectively reducing energy consumption during the production process and lowering production costs, RichWave can also decrease energy consumption while using the products, thereby mitigating production/consumption costs with our suppliers and consumers, as well as cherishing the Earth and engendering a green, sustainable future.

2. Supply Chain Management

To promote the decarbonization plan from our supply chain, we require our suppliers to obtain ISO 9001 Quality Management System, ISO 14001 Environmental Management System, ISO 45001 Occupational Safety and Health Management System, QC 080000 Hazardous Substance Process Management System, and IATF 16949 Automotive Quality Management System certifications. This helps to mitigate the negative environmental impacts of product manufacturing processes. In addition, we have conducted an audit of our 23 primary suppliers across the three categories of wafer, packaging and testing, to make sure that they engage in ongoing energy and GHG emissions reduction improvements. Also, the zero-carbon objective and action plan guidelines for 2030 and 2050 have been formulated.

3. Green Transport

In terms of the daily commute, we encourage our colleagues to make use of public transport or carpool; in terms of business travel, besides asking our colleagues to utilize public transport, they are encouraged to conduct meetings using the video conferencing system to minimize carbon emissions from transportation.