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.

To continuously manage carbon reduction performance and strengthen the data quality and credibility of greenhouse gas inventory, Novatek has undergone external verification conducted by LRQA Taiwan, an impartial third-party institution, thereby enhancing the reliability of its greenhouse gas inventory data across all operating sites in Taiwan. In 2023, the scope of greenhouse gas inventory and quantification management was further expanded to include Novatek's subsidiaries in Suzhou and Xi'an. By monitoring and assessing the greenhouse gas emissions at each location, the Company continuously evaluates and formulates energy-saving and carbon reduction targets. The disclosure of inventory data below is based on data calculated and statistically analyzed according to third-party verification standards.

Novatek has gradually expanded the scope of greenhouse gas quantification management. In 2023, it conducted the first greenhouse gas inventory for scope 1 and scope 2 emissions for its subsidiaries in Suzhou and Xi'an. In February 2024, Novatek officially passed the external verification conducted by SGS China, an impartial third-party institution, and obtained the verification statement. Novatek will continue to promote greenhouse gas inventory, carbon reduction targets, and actions, extending the spirit of carbon management to all overseas operating sites. Novatek aims to complete the greenhouse gas inventory for all subsidiaries by 2027 to achieve sustainable management of carbon emissions.

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 2023, according to the inventory of actual electricity usage, the posted electricity consumption was 38,790,022 kWh, equivalent to 139,644,079 MJ (1 kWh of electricity = 3.6 MJ), an increase of 9.04% over the previous year. The reason for the increase is due to the addition of information equipment in the data center in 2023, which has led to an increase in electricity consumption. Novatek has been dedicated to implementing various energy-saving measures and initiatives over the years, including the construction of high-efficiency data center facilities, improvements in air conditioning system efficiency, and optimization of lighting systems. The energy-saving amount in 2023 was 9.32 GWh (energy-saving rate of 19.38%), a growth of 1.33 GWh (energy-saving rate growth of 1.03%) compared to 2022, 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.

In response to the global green energy trend, Novatek has been continuously investing in and planning renewable energy initiatives since 2021, aiming to achieve the long-term vision of net-zero emissions. In 2023, the investment in renewable energy procurement exceeded NT$15.57 million, with actions including the purchase of 2.77 GWh of green electricity and self-generation of 252,000 kWh of electricity, totaling 3.022 GWh for the year (achieving a renewable energy usage rate of 7.8%), which surpassed the set target of 5% for 2023.