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 overseas subsidiaries.. By monitoring and assessing the greenhouse gas emissions at each location, the Company continuously evaluates and formulates energy-saving and carbon reduction targets. The goal is to complete the greenhouse gas inventory and verification for all overseas subsidiaries by 2025. 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. Since 2023, it initiated greenhouse gas inventory and verifications for its subsidiaries in Suzhou and Xi'an. In 2024, the inventory scope will be further extended to include the establishment of carbon inventory systems for all overseas subsidiaries, thereby embedding the principles of carbon management across all international operations. By 2025, Novatek aims to successfully complete external verification by an independent third-party assurance body and obtain a verification statement. These concrete inventory actions demonstrate the Company’s commitment to environmental responsibility and support the achievement of 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 2024, according to the inventory of actual electricity usage, the posted electricity consumption was 40,882,257 kWh, equivalent to 147,793,335 MJ (1 kWh of electricity = 3.6 MJ), an increase of 5.39% over the previous year. The reason for the increase is due to the addition of information equipment in the data center in 2024, 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 2024 was 10.73 GWh (energy-saving rate of 20.79%), a growth of 1.41 GWh (energy-saving rate growth of 1.41%) compared to 2023, achieving the annual energy-saving target of 1%.

Since 2022, the Company has been implementing and integrating the ISO 50001 Energy Management System. Novatek successfully passed the external verification conducted by LRQA Taiwan, an impartial third-party institution, and obtained the certificate in July 2023. We are committed to enhance energy efficiency effectively in order to implement its sustainable operations in line with green policies. In addition, a carbon pricing system was established in 2024, laying the foundation for future energysaving initiatives and the pilot implementation of internal carbon pricing. By leveraging an internal carbon quantification and data analytics system to enhance energy efficiency, the Company plans to initiate the trial of internal carbon pricing in 2025.

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 2024, the investment in renewable energy procurement exceeded NT$33.45 million, with actions including the purchase of 5.85 GWh of green electricity and self-generation of 240,000 kWh of electricity, totaling 6.09 GWh for the year (achieving a renewable energy usage rate of 14.89%), which surpassed the set target of 12% for 2024.