Identify climate risk issues, systematic management, taking climate action

In response to the challenges arising from global climate change, Novatek has committed to biodiversity conservation and net-zero emissions through the active implementation of three major facets: Green Design, Energy Saving & Carbon Reduction, and Sustainable Supply Chain Management. The Company’s goals include achieving 50% renewable energy usage by 2030, 100% by 2050, and attaining net-zero greenhouse gas emissions.

Links between the four core pillars of the TCFD framework and related Issues


Novatek identifies and evaluates the potential impacts of climate change in accordance with aspects such as operational activities, service provision and environmental interaction, and takes into account the norms of international initiatives related to sustainability and climate change as well as Taiwan's environmental sustainability regulations to implement countermeasures and formulate management policies. Novatek actively identifies its climate-change related risks and opportunities, strengthens its response measures in the face of such risks, and takes this opportunity to create a competitive advantage for the Company.


Dedicated Unit

Novatek organized the "ESG Sustainability Committee" as the core of the Company to implement sustainable development. The chairman, president and many senior executives of Novatek from various fields formulate medium- and long-term sustainable development goals in the management meeting, and are responsible for coordinating and integrating the Company's resources from different departments, identifying climate issues related to the Company's operations, formulating corresponding climate strategies, as well as tracking the achievement of goals.

Regular Follow-ups

The ESG Sustainability Committee is responsible for promoting the development of ESG, climate and environmental strategies, coordinating and managing various climate and environmental goals. The Committee holds at least two meetings each year to monitor the implementation of these goals. The Risk Management Committee is responsible for supervising the effectiveness of the operation mechanism, and at least once a year, reports to the Audit Committee and the Board of Directors on the planning and implementation of these goals. This helps the Board of Directors track progress, provide feasible strategies or other directional suggestions, and urge management to evaluate and adjust planning issues.


Risk Analysis

Set up climate risk management tools to analyze the possible financial impact of major climate risks, which is conducive to the integration and prediction of climate risks, and formulate response and preventive measures to strengthen climate resilience.

Design and R&D (Clean Technology)

Committed to the design and development of smart imaging and smart display technology ICs, providing customers with the best solutions, while taking into account sustainable trends, and developing innovative products that meet the goal of energy saving and carbon reduction.

Renewable (Clean) energy

Set up a solar power generation system, continuously evaluate the purchase of renewable energy, and increase the percentage of renewable energy use year by year.

Energy-saving installations

Continue to carry out the plan to replace old equipment and purchase energy-saving facilities to improve energy efficiency.



Risk Assessments

Novatek's "ESG Sustainability Committee" conducts a potential risk assessment for the Company through the risk identification process, summarizes major climate risk issues as well as the corresponding risk management measures, reports to the Risk Management Committee on the implementation of risk management and control on a quarterly basis, and performs regular reviews and tracking.

Assessment Follow-ups

Novatek reviews the changes in policies, regulations, technologies, markets and business reputation on transition risks and opportunities every year. Furthermore, it strengthens the regular review of the assessment results of physical risks, transition risks and opportunities through climate risk management tools, and continues to make adjustment on a rolling basis.

Sustainability Forums

Through holding the supply chain sustainable operation exchange forum, the sustainable management process for suppliers is improved, allowing suppliers to jointly respond to environmental sustainability-related issues and creating a supply chain with sustainable value.


& Targets

Reduction of Energy Consumption

The energy consumption of full-range main products is reduced by 2~5% compared with the previous year.

Conserving Water and Power

Set internal water and electricity saving standards every year, regularly track the achievement of goals, and actively respond to the risks associated with climate change.

International Verification

Promote suppliers to obtain a number of certificates for ISO management system verification, including carbon emissions and disclosure, water footprint and energy management, and work with suppliers to follow the Company's sustainable development goals.

Renewable (Clean) Energy

Increase the procurement of renewable energy and the targets for the use of renewable energy: 20% by 2025, 50% by 2030, and 100% by 2050.

Climate change risk and opportunity identification

The extreme weather caused by the increasingly severe climate change may have a serious impact on business operations and finances. Novatek implements climate change risk and opportunity identification according to the TCFD, and considers internal as well as external environmental changes to identify potential impacts and possible risks/opportunities on the Company's operations and finances, and formulate corresponding management policies:

Climate change risks

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Climate change opportunities

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Climate change indicator and target setting

Based on the above identified climate change risks and opportunities as well as the corresponding management policies, Novatek has established a tracking system. The goals and results of each climate change issue in 2022 and the goals for 2023 are detailed in the following table:

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Note 1: Key suppliers: Top three suppliers in terms of supplying capacity in 2022 or potential suppliers based on the evaluation of procurement amount, products, services and business partnership

Note 2: Key overseas suppliers: Outsourced overseas suppliers for Novatek's wafer and back-end production processes

Protect Biodiversity

Declaration of Biodiversity

As Novatek strives to fulfill its environmental responsibility and monitor international developments, mitigation of environmental impacts remains a top priority. Novatek incorporates biodiversity risk factors into its assessments and develops response action plans. Through concrete actions, and by leveraging corporate strength, the Company aims to preserve natural ecosystems and achieve the United Nations Sustainable Development Goals (SDGs). In 2024, Novatek officially integrated biodiversity into its corporate sustainability strategy, aiming to mitigate the crises and impacts of climate change through the implementation of corporate sustainability.

Environment Spotlight

Climate Change Response

In 2022, Novatek adopted the framework of the Task Force on Climate-Related Financial Disclosures (TCFD). Through close discussions as well as the implementation of training courses across organizations and various responsible departments, employees can better understand the structure and concept of the TCFD, so that they can be internalized into the scope of work for departments to strength the follow-up work outputs.