Carbon Reduction Commitments, promote Renewable Energy
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Novatek conducted a greenhouse gas inventory according to ISO 14064-1 and completed third-party verification. In addition to Scope 1 and Scope 2 greenhouse gas emissions, we are also actively carrying out the Scope 3 (Categories 3-6) inventory of other indirect emission sources. The emission hotspots of carbon management include value chain partners such as customers and suppliers. Carrying out energy-saving and carbon-reduction programs in conjunction with daily operations will continuously improve energy efficiency. Novatek has established a reduction target for greenhouse gas emissions. Specific actions include reducing greenhouse gas emissions by 20% in 2030 (Scope 1 and Scope 2) based on the 2022 emissions, and specifying that the utilization rate of renewable (clean) energy account for the annual electricity consumption target will reach 50% by 2030 and 100% by 2050, in addition to achieving net zero greenhouse gas emissions.
In the green economy that responds globally, we continue to improve, beginning with the introduction of the ISO 50001 energy management system in 2022, and obtaining the LRQA verification certificate in July 2023 to achieve green operation policies through effective energy management. The current certificate is valid from July 1, 2023 to June 30, 2026. |
Greenhouse gas management (GHG Emisssion)
ISO 14064-1
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Novatek has been conducting annual greenhouse gas inventory and preparing the corresponding reports since 2010. In accordance with the ISO 14064-1 greenhouse gas management system, it continues to conduct the inventory and management of greenhouse gas emissions, and actively implements various measures for the reduction of greenhouse gas emissions based on the inventory results. Through the continuous improvement of plans and activities, Novatek reduces the impact of greenhouse gas emissions on the environment and climate, fulfilling its corporate social responsibility. In order to improve the credibility of 2022's greenhouse gas inventory information and report and at the same time enhance its data quality, an internal verification was carried out in 2023. In May of the same year the Taiwan branch of Lloyd's Register Quality Assurance, an impartial third-party institution, was appointed to conduct external verification operations, which further reinforced the reliability of the Company's greenhouse gas inventory data. The disclosure of the following inventory data is based on the calculations and statistics of third-party verification standards. |
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Statistics of greenhouse gas emissions by category |
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Statistics of greenhouse gas emissions in Scope 1 (Category 1) for 2022 |
Note：The data covers all operating sites of Novatek in Taiwan |
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Statistics of greenhouse gas emissions in 2022 |
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Note 1：The data covers all operating sites of Novatek in Taiwan |
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Energy Management
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Novatek is a professional IC design company engaged in product design, R&D and sales. The production and manufacturing of its products are conducted by professional foundries. Therefore, the energy demand of the Company is mostly for domestic use such as air conditioning and lighting. The main energy used is electricity, which is purchased from the Taiwan Power Company. For the whole year of 2022, according to the inventory of actual electricity usage, the posted electricity consumption was 35,574,369 kWh, equivalent to 128,067,728 MJ (1 kWh of electricity = 3.6 MJ), an increase of 4.9% over the previous year. The reason for the increase is due to the addition of information equipment in the data center, which has led to an increase in electricity consumption. The energy-saving amount in 2022 was 7.99 million kWh (energy-saving rate of 18.35%), a growth of 0.91 million kWh (energy-saving rate growth of 1.07%) compared to 2021, achieving the annual energy-saving target of 1%
Novatek began to introduce the ISO 50001 energy management system in 2022 to strengthen the use of energy management and improve the energy use efficiency of the Company, and obtain the LRQA verification certificate in July 2023. The current certificate is valid from July 1, 2023 to June 30, 2026. |
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Novatek energy structure in 2022 |
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Statistics of energy intensity in the past four years |
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Energy saving plan |
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Novatek continues to promote energy-saving measures to reduce greenhouse gas emissions. The Company invested approximately NT$ 12.7 million in implementing the 2022 energy saving plan. The electricity saving in 2022 was 7.99 million kWh (electricity saving rate of 18.35%), a growth of 0.91 million kWh (electricity saving rate growth of 1.07%) compared to 2021, achieving the annual electricity saving target of 1%. The electricity saving is equivalent to the carbon absorption of 10.5 Da’an ParksNote 1 and the annual electricity consumption of 2,208 householdsNote 2. |
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Use of renewable (clean) energy
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In response to the global green energy trend, Novatek completed an assessment of its renewable energy plan in 2021. In 2022, Novatek invested over NT$ 9.9 million in purchasing renewable energy and implemented the following action plans: |
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Use of renewable (clean) energy
In response to the global green energy trend, Novatek completed assessment of our renewable energy program in 2021. The Company completed signing of the letter of intent for renewable energy procurement in January 2022, and completed signing of renewable energy procurement contracts in May 2022. The contracts include purchasing electricity from solar photovoltaic systems with installed capacity of 3MW, and electricity from offshore wind power systems with installed capacity of 2MW. The purchased electricity will be supplied in stages, beginning with 2MW of solar electricity in April 2023. In September 2022, the solar power generation system installed on the roof of the Taiyuan Building was completed and began operation. Our self-built system has an installed capacity of 197.625 kW, which will provide electricity generated from the solar panels for self-use. In 2022, the total electricity generated by the system reached 51.811 MWh. In addition, the procurement of 50 Renewable Energy Certificates (RECs) (50 kW) was completed in December 2022. In 2022, a total of 101.811 MWh of renewable energy was used accounting for 0.29% of annual electricity consumption. Renewable energy goal for 2023: The second phase of renewable energy procurement will be carried out in 2023, with 2 GWh of renewable energy purchased in 2023 to increase the percentage of renewable energy use year by year. We estimate that renewable energy will account for 20% of annual electricity consumption by 2025, and 50% of annual electricity consumption (RE50) by 2030. In 2050, renewable energy will account for 100% of the annual electricity consumption (RE100). Novatek is responding to calls for carbon reduction with concrete action; we hope to contribute to the global goal of net-zero carbon emissions by purchasing green electricity.
ISO 14064-1 Greenhouse Gas Inventory
Novatek conducted a greenhouse gas inventory based on ISO 14064-1 standards. In addition to Scope 1 and Scope 2 emissions from its own operations, Novatek took proactive measures to assess Scope 3 emissions (Categories 3–6) from other indirect sources for the year of 2022. This assessment included carbon emission hotspots across the value chain (including customers and suppliers). In May 2023, Novatek successfully completed third-party verification and obtained the ISO 14064-1 greenhouse gas inventory verification statement.
