Greenhouse Gas Reduction Management Policy

Novatek has committed to using 2022 as the baseline year for carbon emissions, with a target of achieving an absolute reduction of 20% in Scope 1 and Scope 2 greenhouse gas emissions by 2030. For Scope 3 (categories 3–6), we continuously require suppliers to provide their electricity-related carbon emission data as a reference for future Scope 3 emission management and reduction strategies. We have set targets for the share of renewable (clean) energy in annual electricity consumption to reach 50% by 2030 and 100% by 2050, and to achieve net-zero greenhouse gas emissions.

 

Our company’s energy saving and carbon management are driven by the ESG Sustainability Committee. We have devised four major strategies to realize the company’s carbon reduction goals:

 

  • Procure energy-efficient equipment and implement automation control and energy monitoring systems.
  • Procure renewable energy and construct energy equipment.
  • Design new factories with energy-saving and sustainable features and pursue green building certifications.
  • Implement an internal carbon pricing mechanism to incentivize employee participation in energy-saving and carbon-reduction actions.

We replace older equipment with energy-efficient models and implement automation controls to improve energy use efficiency. Measures include adopting high-efficiency data center infrastructure and energy-saving servers, and reducing electricity consumption from building air conditioning and office lighting. Novatek continues to implement and has obtained ISO 50001 energy management system certification, establishing an EnMS to monitor electricity flows and carry out targeted energy-saving improvements. We plan annual green power procurement and have activated rooftop solar installations on existing buildings to reduce electricity carbon intensity. New factory designs adopt smart and green building concepts (referencing LEED and WELL certification standards), and we continuously promote employee energy-saving awareness to jointly achieve the company’s ESG goals. Regarding the carbon pricing mechanism, the current carbon fee is set at NTD 4,000 per tonne, and a carbon management platform has been established for departments to identify emission hotspots and formulate precise carbon-reduction plans. Through the above reduction measures, Scope 1 and Scope 2 emissions in 2025 have decreased by 7.1% compared with the same period last year.

 

Greenhouse gas management (GHG Emisssion)

2025 GHG Inventory Verification Statements

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.

Statistics of greenhouse gas emissions by scope for 2025

Greenhouse gas scope

Emission report by category

Emission amount

(Metric tons of CO2e)

Percentage of emissions (%)

Scope 1

Category 1: Direct greenhouse gas emissions

750.6617 0.04%

Scope 2

Category 2: Indirect greenhouse gas emissions from purchased energy

750.6617 0.86%

Scope 3

Category 3: Indirect greenhouse gas emissions from transportation

4,357.5036 0.24%
Category 4: Indirect greenhouse gas emissions from the use of products by the organization 1,021,701.4127 56.56%
Category 5: Indirect greenhouse gas emissions from the use of products sold by the organization 764,126.8430 42.30%
Category 6: Other sources of indirect greenhouse gas emissions N/A N/A

Total emissions

1,806,402.109 100%
Note:The data covers all operating sites of Novatek in Taiwan

Statistics of greenhouse gas emissions by gas type in 2025

(CH4) 2025 Statistics_GHG type_en.png (149 KB)

Note:The data covers all operating sites of Novatek in Taiwan

 

Statistics of greenhouse gas emissions in Scope 1 (Category 1) for 2025

Emission category

Emission source

Greenhouse gas type

Emission amount

(Metric tons CO2e)

CO2 CH4 N2O HFCs
Stationary combustion source

LPG

v v v   39.0397
Stationary combustion source

Diesel + Gasoline

v v v   1.1457
Mobile combustion source

Gasoline

v v v   8.4834
Fugitive combustion source

Septic tank

  v     28.6115
Fugitive combustion source

Fire extinguisher

v       0.1814
Fugitive combustion source

Refrigerant

      v 673.2000
Total emissions 750.6617

Note:The data covers all operating sites of Novatek in Taiwan

 

Statistics of greenhouse gas emissions in Scope 2 (Category 2) for 2025

Emission category

Emission source

Greenhouse gas type

Emission amount

(Metric tons of CO2e)

CO2 CH4

N2O

Indirect energy emission

Externally purchased electricity v  

 

15,465.6883

 Note: The data covers all operating sites of Novatek in Taiwan

 

Statistics of greenhouse gas emissions in Scope 3 (Category 3-6) for 2025

 Emission category

 Greenhouse gas emission amount

(Metric tons of CO2e)

Category 3

Upstream raw material transportation and distribution

891.7391

Business trips

987.3208

Employee commuting

1,708.8966

Downstream product transportation and distribution

769.5471

Category 4

 

Purchased products and services

1,017,926.9841

Greenhouse gas emissions from fuel and energy-related activities (excluding Scope 1 and 2)

3,628.8800

Waste disposal and transportation

145.5486

Category 5

Use of sold products

764,126.8430
 Category 6

Others

N/A

Total emissions

1,790,185.7593

 

  • Note 1:The data covers all operating sites of Novatek in Taiwan
  • Note 2:The estimation of emissions from sold products was based on the 2024 electricity carbon emission factor of 0.474 kg CO2e per kilowatt-hour. One metric tons of CO2e is approximately equivalent to 7,595 megajoules (MJ).

 

 

 

Statistics of greenhouse gas emissions (Scope 1 and Scope 2) for the past 4 years

Unit:Metric tons of CO2e

Greenhouse gas type

 2022  2023 2024 2025

Scope 1 (direct emissions)

 462.8166  685.7742  263.1158 750.6617

Scope 2 (indirect emissions)

 18,107.3538  17,705.2927 17,186.9165 15465.6883

Total emissions

 18,570.170  18,391.067 17,450.032 16,216.350

Revenue of Taiwan Headquarters

(NT$ million)

109,925 110,370 102,717 100,610

GHG emissions intensity

(metric tons CO2e/NT$ million)

 0.16894  0.16663 0.16988 0.16118

Note: The data covers all operating sites of Novatek in Taiwan

 

Total energy consumption and energy intensity

energy01_e.png (66 KB)

  • Note 1:The data covers all operating sites of Novatek in Taiwan
  • Note 2:Greenhouse gas emission intensity = metric tons CO2e/total revenue of Taiwan Headquarters (NT$ million).

 

Greenhouse gas inventory results of Novatek's subsidiaries

2025 GHG Inventory Verification Statements

2025 GHG Inventory Verification Statement

2025 GHG Inventory Verification Statement

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. Novatek also 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. The base year for greenhouse gas reduction at the subsidiaries is 2025, with total Scope 1 and Scope 2 emissions in the base year amounting to 667.0284 metric tons CO2e. The subsidiaries plan to evaluate the procurement of Green Electricity Certificate (GEC) as part of their action plan to achieve a 5% reduction in Scope 1 and Scope 2 greenhouse gas emissions in 2026 compared with 2025.

 

Greenhouse gas emissions of Novatek's subsidiaries

Unit: Metric tons of CO2e

Greenhouse gas type

Name of subsidiary

2025

Scope 1 (direct emissions)

Novatek (Suzhou) Co., Ltd.

17.3569

Novatek (Xi'an) Co., Ltd.

51.9590

Novatek (Beijing) Co., Ltd.

4.7654
Novatek (Shanghai) Co., Ltd. 22.0655
Novatek (ShenZhen) Co., Ltd. 20.5557
NTK International Limited 0.6593
Novatek Japan Kabushiki-Kaisha 0.0000
Novatek USA Inc. 0.0000

Total

117.3618

Scope 2 (indirect emissions)

Novatek (Suzhou) Co., Ltd.

74.5376

Novatek (Xi'an) Co., Ltd.

189.8492

Novatek (Beijing) Co., Ltd.

2.5312

Novatek (Shanghai) Co., Ltd.

160.0772

Novatek (ShenZhen) Co., Ltd.

106.0680

NTK International Limited

7.1916

Novatek Japan Kabushiki-Kaisha

4.5116
Novatek USA Inc. 4.9002
Total 549.6666
Scope 3 (indirect emissions) Novatek (Suzhou) Co., Ltd. 96.0036
Novatek (Xi'an) Co., Ltd. 94.0682
Novatek (Beijing) Co., Ltd. 51.3848
Novatek (Shanghai) Co., Ltd. 144.2656
Novatek (ShenZhen) Co., Ltd. 236.7570
NTK International Limited 104.4793
Novatek Japan Kabushiki-Kaisha 1.1428
Novatek USA Inc. 35.5878
Total 763.6891

Total emissions

1,430.7175

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, as well as data centers supporting research and development activities. The main energy used is electricity, which is purchased from the Taiwan Power Company and renewable energy suppliers, including a portion from self-generated solar power. For the whole year of 2025, according to the inventory of actual electricity usage, the posted electricity consumption was 43,011,643 kWh, equivalent to 155,592,673 MJ (1 kWh of electricity = 3.6 MJ), an increase of 5.21% over the previous year. The reason for the increase is due to the addition of information equipment in the data center in 2025, 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 2025 was 12.16 million kWh (energy-saving rate of 22.05%), a growth of 1.43 million kWh (energy-saving rate improving by more than 1.26%) compared to 2024, thereby achieving the annual energy-saving target of an electricity-saving rate exceeding 1% year-over-year.

 

Since 2022, Novatek has been establishing and implementing an ISO 50001 Energy Management System to strengthen energy management and improve energy efficiency. The company successfully obtained certification from LRQA in July 2023, and the latest certificate is valid from July 1, 2026, to June 30, 2029.In addition, Novatek completed the establishment of a carbon pricing system in 2024, laying the foundation for subsequent energy-saving initiatives and the pilot implementation of internal carbon pricing. By leveraging an internal carbon quantification data analysis system to enhance energy efficiency, the company also completed the planning and pilot implementation of its internal carbon pricing mechanism in 2025.

Novatek energy structure in 2025

Energy type

Source

Usage

Amount used

Energy consumed (MJ)

Percentage of energy consumed (%)

Electricity Taiwan Power Company Plant-wide power facilities

43,011,643 kWh

154,841,914

99.52%

LPG Wanbin Gas Company Kitchen

13,453 kg

617,627

0.40%

Gasoline CPC Corporation Business vehicles, fire training

3,739.50 liters

118,692

0.08%

Diesel CPC Corporation Generators

400 L

14,440

0.01%

Total

155,592,673

100.00%

 

  • Note 1:Electricity-to-energy conversion: 1 kWh = 3.6 MJ
  • Note 2:Liquefied petroleum gas-to-energy conversion: 1 kg of liquefied petroleum gas = 45.91 MJ
  • Note 3:Gasoline-to-energy conversion: 1 L of gasoline = 31.74 MJ
  • Note 4:According to ISO 14064-1 and the Greenhouse Gas Inventory and Registration Guidelines, quantification of usage data
  • Note 5:Diesel-to-energy conversion: 1 L of diesel = 36.1 MJ
  • Note 6:The unit conversion is based on the Product Unit Heating Value Table published by the Bureau of Energy, MOEA (Ministry of Economic Affairs), and the calorific values announced by the Climate Change Administration, Ministry of Environment
  • Note 7:The data covers all operating sites of Novatek in Taiwan

 

Statistics of energy intensity for the past 4 years

Year

Total energy consumption (MJ)

Total revenue

(NT$ million)

Energy intensity

(MJ/NT$ million)

2022 128,930,666 109,925 1,172.90
2023 140,695,268 110,370 1,274.76
2024 148,037,675 102,717 1,441.22
2025 155,592,673 100,610 1,546.49

 

  • Note 1:Energy intensity = total energy consumption / total revenue
  • Note 2:The data covers all operating sites of Novatek in Taiwan

 

Total energy consumption and energy intensity

energy02_e.png (25 KB)

 

Electricity consumption and electricity saving for the past 4 yearsNote

energy03_e.png (50 KB)

  • Note: Electricity saving rate = Annual electricity saving ÷ (Annual electricity saving + Annual electricity consumption) x 100%. Novatek's main electricity consumption is for product research, development, and computational use. Therefore, in 2018, Novatek introduced a new type of energy-efficient IT rooms and set that year as the benchmark for energy savings calculations. Subsequently, energy savings have been measured based on this benchmark year.

Energy saving plan

Novatek has continued to promote energy-saving initiatives to reduce greenhouse gas emissions. In 2025, the Company invested approximately NT$ 32.9 million in energy-saving programs and immersion liquid-cooling servers. Electricity savings for 2025 reached 12.16 million kWh, representing an electricity-saving rate of 22.05%. Compared with electricity savings of 10.73 million kWh in 2024, the Company achieved an additional 1.43 million kWh in electricity savings, with the electricity-saving rate increasing by more than 1.26%, thereby meeting the annual energy-saving target of exceeding 1%. The electricity saving is equivalent to the carbon absorption of 14.9 Da’an ParksNote 1and the annual electricity consumption of 3,317 householdsNote 2.

 

energy04_e.png (31 KB)

Energy saving plan Annual savings on electricity usage
(kWh)

Reduction of greenhouse gases

(Metric tons of CO2e)

MJ

1

High-performance computer room of the data center

7,088,083 3359.75 25,517,099.52
2 Air conditioning system 3,597,080 1705.02 12.949,488.35
3 Lighting system 1,043,273 494.51 3,755,784.17
4 Other systems 434,999 206.19 1,565,996.40
  Total 12,163,436 5,765.47 43,788,368.43

 

  • Note 1:According to the Council of Agriculture's estimations released by the Ministry of Environment, each hectare of forest has a carbon storage capacity of approximately 15 metric tons per year, and a park the size of the Da’an Park (25.8 hectares) is able to absorb 387 metric tons of CO2e per year.
  • Note 2:According to the Taiwan Power Company's statistics, the average annual electricity consumption of a household in 2025 was 3,666 kWh.

 

減碳方案比例圖

 

Use of renewable (clean) energy

In response to the global green energy trend, Novatek has invested in and planning renewable energy initiatives since 2021, aiming to achieve the long-term vision of net-zero emissions. In 2025, the investment in renewable energy procurement exceeded NT$59.641 million, with actions including the purchase of 10.146 million kWh of green electricity and self-generation of 0.237 million kWh of electricity, totaling 10.383 million kWh for the year (achieving a renewable energy usage rate of 24.14%), which surpassed the set target of 20% for 2025.

energy05_e.png (52 KB)

  • Note: The renewable energy used is the sum of self-generation solar energy and external procurement of green electricity (solar photovoltaic).

Target for renewable energy use

In response to carbon reduction through concrete actions, Novatek aims to achieve net-zero emissions by 2050 by increasing the amount and percentage of renewable energy procurement annually, using self-generated solar power, and contributing to the global net-zero emission goal.

 

energy06_e.png (58 KB)
Spotlight
Environment Spotlight

Use of renewable (clean) energy

In response to the global green energy trend, Novatek has invested in and planning renewable energy initiatives since 2021, aiming to achieve the long-term vision of net-zero emissions. In 2025, the investment in renewable energy procurement exceeded NT$59.641 million, with actions including the purchase of 10.146 million kWh of green electricity and self-generation of 0.237 million kWh of electricity, totaling 10.383 million kWh for the year (achieving a renewable energy usage rate of 24.14%), which surpassed the set target of 20% for 2025. 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.

Greenhouse gas inventory

Novatek had initiated a greenhouse gas inventory in accordance with ISO 14064-1:2018. In addition to Scope 1 and Scope 2 emissions, the company had proactively sought key factors of climate change. Since 2022, the inventory had expanded to include Scope 3 (Categories 3-6). Starting in 2024, the scope had further extended to all overseas subsidiaries to ensure that the spirit of carbon management was upheld across global operations. By 2025, Novatek had successfully passed external verification by an impartial third-party organization and had obtained a verification statement. Through concrete inventory actions, Novatek had demonstrated its commitment to environmental responsibility and had achieved sustainable carbon management goals.