Greenhouse Gas Reduction Management Policy
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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:
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
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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.
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. |
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Statistics of greenhouse gas emissions by scope for 2025 |
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| Note:The data covers all operating sites of Novatek in Taiwan | |||||||||||||||||||||||||||||
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Statistics of greenhouse gas emissions by gas type in 2025 |
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Note:The data covers all operating sites of Novatek in Taiwan |
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Statistics of greenhouse gas emissions in Scope 1 (Category 1) for 2025 |
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Emission category |
Emission source |
Greenhouse gas type |
Emission amount (Metric tons CO2e) |
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| 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 | |||||
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Note:The data covers all operating sites of Novatek in Taiwan |
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Statistics of greenhouse gas emissions in Scope 3 (Category 3-6) for 2025 |
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Greenhouse gas inventory results of Novatek's subsidiaries
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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.
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Greenhouse gas emissions of Novatek's subsidiaries |
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Unit: Metric tons of CO2e
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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, 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. |
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Novatek energy structure in 2025 |
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Statistics of energy intensity for the past 4 years |
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Energy saving plan |
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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.
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Use of renewable (clean) energy
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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. |
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Target for renewable energy use |
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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.
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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.
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