Greenhouse Gas and Energy Management Actions

Greenhouse Gas Inventory and Energy Management Actions

Advantech adheres to the original devotion to the idea of being a global citizen, and to the corporate purpose of living a happy life. We are thus willing to contribute to environmental improvement and labor safety maintenance. Advantech has gone beyond introducing the ISO 14001 environmental management system in 1996 and the OHSAS 18001 occupational safety and health management system in 2005 (revised in 2020 to ISO 45001). In addition to complying with the relevant government environmental protection and labor safety and health laws and regulations, we are also committed to reducing the impact on overall environmental safety and health in the greenhouse gas management, product design, product use, and disposal stages. And through the participation and commitment of all employees, we can achieve the goal of environmental protection and sustainable development of the business. This chapter’s writing scope covers Taiwan factories region and Kunshan factories, together accounting for 94% of total revenue; there is also further disclosure of a small amount of information concerning our Japan factories.

Management Guidelines for Major Topics/Management Structure

大主題管理方針 / 管理架構 大主題管理方針 / 管理架構
大主題管理方針 / 管理架構 大主題管理方針 / 管理架構
大主題管理方針 / 管理架構 大主題管理方針 / 管理架構
*Note: Taiwan and Kunshan

Greenhouse Gas Inventory and Management

Advantech is creating a low-carbon business environment. Based on Taiwan‘s Greenhouse Gas Reduction and Management Act, and on the quantification, monitoring, reporting and verification procedures for greenhouse gas inventory provided by the ISO 14064-1 standard, we established a Greenhouse Gas Inventory Promotion Committee in order to promote various tasks connected to greenhouse gas inventory and reduction. We have done so with a view of reducing direct and indirect greenhouse gas emissions year by year. In 2011, we also joined the Carbon Disclosure Project (CDP) and have disclosed the Company’s carbon reduction plans and performance annually.

Greenhouse Gas Inventory

Advantech's Taiwan factories make reference to ISO 14064-1 and to the GHG Protocol Evaluator Tool, in addition to requiring self-inspections. Furthermore, third-party on-site inspections have been carried out by Taiwan SGS Limited starting from 2019. Organizational boundaries are drawn in reference to the suggested requirements given by the ISO 14064-1:2018 standard. Organizational boundaries are set with operational control rights, and domestic and overseas subsidiaries are not included; furthermore, we establish the Company's greenhouse gas inventory management procedures and inventory reports, and we redefine the emission source inventories. Organizational boundaries include Rueiguang Headquarters, Taipei Sunny Building, the Donghu Factory, and the Linkou Campus. In addition to the qualitative and quantitative inspections of Category 1 (direct GHG emissions) and Category 2 (indirect GHG emissions associated with energy production), the scope of inventory inspections also involves conducting inventory of some items in Categories 3 and 4 (indirect greenhouse gas emissions).

In Category 1 (direct GHG emissions), Advantech's Taiwan factories emitted a total of 629.9276 metric tons of CO2e. The emissions of each region are shown in table. Advantech's Kunshan factories conducted their first 2014 annual ISO14064-1 greenhouse gas emission inventory in 2015, and a third-party on-site inspection was conducted by the China Quality Certification Center (CQC). As a result of the 2021 inventory, it was found that Advantech's Kunshan region produced a total of 2,741.26 metric tons of CO2e in Category 1 (direct GHG emissions).

GHG Category 1 Emissions of Advantech’s Main Factories in 2021

GHG Category 1 Emissions of Advantech’s Main Factories in 2021 GHG Category 1 Emissions of Advantech’s Main Factories in 2021
*Note:
1. The Taiwan Donghu Factory has no direct combustion source, and most of the equipment containing refrigerant is R22 refrigerant (which is controlled by the Montreal Protocol and is not included in inventories), so its emissions are zero.
2. Plant expansion in Kunshan, China

Among Advantech's Taiwan factories, Category 2 emissions (indirect GHG emissions associated with energy production) only involve the use of purchased electricity. Carbon emissions are calculated based on the 2020 electricity coefficient of 0.502 kg CO2e announced by the Bureau of Energy of the Ministry of Economic Affairs, for a total of 9,654.05 metric tons of CO2e. For Advantech's Kunshan factories, Category 2 emissions (indirect GHG emissions associated with energy production) including the use of purchased electricity and purchased steam for a total of 19,036.17 metric tons of CO2e. Carbon emission calculation of electricity refers to the 7.2.2 grid emission factor of 610.10 kg CO2e in "Guidelines for Accounting Methods and Reporting of Corporate Greenhouse Gas Emissions for Power Generation Facilities." Carbon emissions calculations for steam refer to an emission factor of 110 kg CO2/GJ for steam given in "Guidelines for Accounting Methods and Reporting of Greenhouse Gas Emissions of Enterprises in Other Industries." Among Advantech's Japan factories, Category 2 emissions (indirect GHG emissions associated with energy production) only involve the use of purchased electricity. Carbon emissions are calculated based on the electricity coefficient of 0.598 kg CO2e announced by Japan, for a total of 1,734.20 metric tons of CO2e. Table 4.3.2 shows the emissions of GHG Category 1 and Category 2 among Advantech’s factories. The combined emissions of Category 1 and Category 2 in 2021 came to 33,795.61 metric tons of CO2e.

GHG Category 1 and Category 2 Emissions of Advantech’s Main Factories in 2021

GHG Category 1 Emissions of Advantech’s Main Factories in 2021 GHG Category 1 Emissions of Advantech’s Main Factories in 2021
*Note:
1. Greenhouse gas emissions of Advantech's Taiwan factories are calculated using the latest version of the “Greenhouse Gas Factor Management Table” (version 6.0.4 released in June 2019) of the Environmental Protection Administration of the Executive Yuan, and the Global Warming Potentials (GWP) of each greenhouse gas as announced by the IPCC in 2013.
2. Due to expansion of the factory in Kunshan, China, emissions increased compared to 2020.
3. Greenhouse gas inventories in the Japan factories have not been verified by a third party.

The average GHG emission per unit of turnover in 2021 (Category 1 and Category 2) was 0.00058 tons of CO2e per NT$1,000, which is 4.31% lower than the average GHG emission per unit of turnover in 2019 of 0.00061 tons of CO2e per NT$1,000. We are thus continuing to move towards the 60% SBT target set for 2030. The main reason is that Advantech achieved overall reduction in electricity consumption by integrating manufacturing systems in Linkou and Donghu factories, improving manufacturing efficiency and making good use of Linkou’s energy-saving systems. Meanwhile, the Advantech Kunshan Manufacturing Center has launched various energy-saving projects since 2019, including the establishment of an energy-saving efficiency evaluation mechanism for each unit, energy-saving evaluation and verification of electrical machinery and equipment, and reduction of domestic electricity costs. In the future, we will continue to set an annual goal of reducing greenhouse gases per unit of turnover.

In addition to achieving the goals set by the SBT announcement, this will also deeply embed the concept of energy saving in the hearts of colleagues and help it become an important part of the Company’s culture. In order to discover the key factors for climate change mitigation, Advantech Taiwan has also initiated inventories of other sources of GHG emissions in addition to emissions from its own operations. In 2019, the GHG Protocol Evaluator Tool was adopted to identify other types of GHGs along with relevant inventory methodologies being established. This was done with a view to identifying emission hotspots, setting reduction targets, and gradually implementing reduction measures. Please refer to table for identification and emissions in Category 3 and Category 4 for Advantech Taiwan and China-Kunshan in 2021.

Identification and Emissions in GHG Categories 3 and 4 for Advantech Taiwan and Kunshan

 Identification and Emissions in GHG Categories 3 and 4 for Advantech Taiwan and Kunshan  Identification and Emissions in GHG Categories 3 and 4 for Advantech Taiwan and Kunshan

Energy Data Management

The main source of greenhouse gas emissions from Advantech's factories was carbon dioxide generated during the power generation process of the externally purchased electricity required for the Company's operations. This emission source accounted for more than 90% of the Company's overall emissions in 2021. In 2021, Advantech's total energy consumption (electricity, steam, gasoline, diesel, natural gas) in Taiwan, Kunshan (China), and Japan came to 224,165.74 GJ.

  • Electricity Consumption Statistics
    for Advantech's Factories
    (Taiwan, China, and Japan)
    Electricity Consumption Statistics Electricity Consumption Statistics
  • Advantech (Taiwan, China)
    Electricity Consumption per Unit
    of Turnover
    研華(不包含日本)近年單位營收耗電量
  • Advantech (Taiwan, China)
    Non-Renewable Fuel
    Consumption
    Non-Renewable Fuel consumption Non-Renewable Fuel consumption
  • Advantech (Taiwan, China) Steam
    Energy Consumption
    (Nonrenewable)
     Energy Consumption  Energy Consumption

Overall Energy Management Strategies and Actions

Advantech's overall energy management strategy includes: daily energy savings, development of an iEMS building energy management system, and a clean energy strategy.

Daily Energy Savings

Try to replace in-person meetings with video conferencing

Prioritize the procurement of office equipment and information electronic products with energy-saving labels

Control indoor air temperatures

Encourage employees to turn off the lights

Energy-saving facilities in the office area

LED lamp replacement

Upgrades or replacement of air compressors, water chillers, and other equipment

Development of iEMS Building Energy Management System

Advantech is committed to developing an Intelligent Energy Management System (iEMS). We carry out energy-saving management in the two dimensions of management and operations, doing so through energy consumption information capture, data uploads to the cloud, AI analysis, information presentation, and real-time alarms; and via cooperation with scheduling adjustments, equipment cleaning, and maintenance, and the replacement of high-energy-consuming equipment. Advantech's iEMS was upgraded in mid-2020, and the platform was migrated to Advantech's WISE-Stack private cloud by the end of 2020. Officially launched in Linkou in the first quarter of 2021, the first wave of functions included an overview of energy conservation performance used by top decision makers, real-time energy consumption monitoring, and abnormal energy consumption analysis for the use of managers, and so on. Furthermore, it was launched in the Kunshan Campus in the second half of 2021, and other manufacturing systems will be introduced in the future.

In addition, we upload the monthly electricity and water consumption information of Advantech Linkou, Neihu, Kunshan, Shanghai, Xi'an and Beijing to the internal eManager system. this allows the unit responsible for energy conservation of each factory office (factory or general affairs) to see the changes in monthly electricity consumption and water consumption, comparisons with the previous month and the year-ago period, and whether energy saving targets have been achieved. We produce energy-saving management from top to bottom through the internal transparency of energy consumption information.

Clean Energy Strategy

Solar power generation: the Linkou Campus is equipped with solar power panels, which have been in use since June 2019. In 2021, they generated about 48,489 kWh of electricity per month on average for use in parallel with Taipower. In addition, the new building in Linkou Phase 3 is also expected to be fully equipped with solar panels, with an estimated power generation capacity of 8,000 kWh per month.

Electricity purchases: The Company announced we would invest in eco power plants in 2021, targeting to use 50% eco electricity in 2026 and 100% eco electricity in 2032. We expected to gradually begin using eco electricity in 2023

Future Plans

Looking to the future, Advantech integrated the Taiwan factory and concentrated production in the Linkou Phase 2 Intelligent Factory. Furthermore, through the energy management system and production line optimization management mechanism, we will achieve energy consumption reduction targets and reduce electricity consumption to realize energy saving benefits. For the sake of the continuation of human life and forever keeping a green environment on the Earth, Advantech is not only committed to reducing the impact on the overall environmental safety and health in product design, use and disposal activities, and complying with relevant regulations. We also pursue these aims through the participation and commitment of all employees to achieve environmental protection and sustainable development of the business.