Climate Change

After the Paris Agreement, climate change has become a high-profile topic among governments and businesses around the globe. Particularly, changes in sustainability related regulations and extreme climate may bring about a significant impact on business operations and people's welfare. In this regard, RichWave referred to the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations in 2022 to establish a complete climate governance framework through the four dimensions of governance, strategy, risk management, and metrics and targets, formulate a greenhouse gas emission reduction plan, as well as phased goals and strategies, and identify climate- related risks and opportunities that may cause financial impacts to the company and further develop strategies and actions to enhance the Company's climate resilience.

The four core elements of TCFD

Governance

The company has established a "Climate Change Risk Response Team" within the previously established Business, Continuity Planning (BCP) Management Office, with the Board of Directors as the highest guidance and supervision unit and the President as the convener, business units send representatives to participate, and coordinated by Global Affairs Office, which is responsible for policies, plans, and promotion, as well as communication and coordination among various groups and across departments, and supervising the implementation of such policies. The "Climate Change Risk Response Team" includes the Incident Investigation Team, the Supply Chain Team, the Support Team, and the Tactical Team. Once a year, the teams regularly identify risks and opportunities, and report to the Board of Directors on the high-risk assessment reports and countermeasures.

Strategy

1. The company is committed to the development and design of RFIC devices and provides customers with the best design services, while at the same time taking into account the trend of sustainability and developing innovative products that meet the needs of energy saving and carbon reduction.
2. We continuously evaluate the purchase of renewable energy, with a plan to begin a renewable energy use program within five years, and increase the percentage of renewable energy use each year.
3. We continuously plan for the replacement of old equipment and the procurement of energy- saving facilities to improve the efficiency of energy use.

Risk management

1. Through Business Continuity Plan (BCP), RichWave utilizes a risk identification process to assess the potential risks of the business, compile significant climate risk issues and corresponding risk management measures, and conduct regular annual reviews.
2. RichWave conducts an annual risk and opportunity assessment of policies, regulations, technologies, markets, and business transformation, and periodically reviews the risks and opportunities through the risk identification process of major climate issues, and evaluates the results and makes revisions on a rolling basis.
3. We continuously address high-risk climate issues and propose improvement measures to reduce the risk to an acceptable level.

Metrics and Targets

1. Set internal standards for water and electricity conservation every year, and implement planned electricity use, greenhouse gas reduction, and other waste management over the next five years to achieve the management policy goal of reduction by 3%, and regularly track the achievement of the target and review the feasibility of the target, and make adjustments as appropriate so that the target can be in line with the latest risks.
2. Drive the supply chain to obtain a number of ISO international certifications, including carbon emissions and disclosure, energy management, and work together with suppliers toward the goal of environmental sustainability.
3. RichWave will continue to plan for targets on renewable energy over a five-year period, including participation in the renewable energy electricity trading market, to increase the percentage of renewable energy use year over year.

GHG Management

Operational GHG Management

Faced with global climate change, RichWave has not only vigorously adopted a wide range of response measures but also strives to mitigate GHG emissions. RichWave is in the IC research and development and design industry, and the significant source of emissions is the use of purchased electricity. In this regard, RichWave has adopted the ISO 14064-1:2018 greenhouse gas management system since June 2022, and has passed the international certification in November of the same year, and will adopt the operation control right method to conduct a greenhouse gas inventory with 2021 as the base year and actively promote various greenhouse gas emission reduction measures based on the results of the inventory. Through continuous improvement plans and measures, we will reduce greenhouse gas emissions within the scope of our operations and fulfill our corporate social responsibility.

RichWave's Scope 2 GHG emissions in 2022 was 597.1 tCO2e, up 0.59% compared to 2021, Scope 1 and Scope 2 emissions intensity is 0.1820 tCO2e/million revenue, mainly due to the increase of 4.03% in the public electricity consumption of the leased building as compared to the previous year. However, since the public electricity consumption of the building is shared by all lease tenants, the amount of public electricity consumption does not have a positive correlation with the actual electricity consumption of RichWave, and therefore, when setting the electricity consumption reduction target, the calculation was based on the independent meters of RichWave. Please refer to 5.2 Energy Management for the detailed description. To decrease GHG emissions during our business operation, RichWave has pro-actively implemented various energy-saving solutions (for details of specific measures, please refer to the “Green Operations” chapter) to gradually achieve the greenhouse gas reduction target.

Other Indirect GHG Emissions Management

RichWave's business operations include IC research and development, design and sales, where product manufacturing is completely reliant on the processing of our supply chain partners. The supply chain is an important link in mitigating product life cycle carbon emissions, hence we stress scope 3 GHG management and vigorously promote the reduction of GHGs outside of the organization's business scope. Through continuous refinement, increasing the performance of our high-power, energy-efficient products and implementing supply chain energy management, we can minimize the carbon footprint and carbon emissions of various terminal electronic products. In doing so, the company will be able to attain the sustainability of energy resources on the planet while offering consumers high-performance, high-quality products.

Green Product Design

We have taken the environmental impact of the products' life cycle during the IC design stage and continue to facilitate innovations in energy-saving designs. Besides effectively reducing energy consumption during the production process and lowering production costs, RichWave can also decrease energy consumption while using the products, thereby mitigating production/ consumption costs with our suppliers and consumers, as well as cherishing the Earth and engendering a green, sustainable future.

Supply Chain Carbon Management

To promote supply chain carbon reduction, we have demanded our suppliers obtain international quality certifications such as ISO 9001/ISO 14001/ISO 45001/QC 080000/IATF 16949 to prevent the production process's negative impact on the environment. In addition, we have conducted an audit of our 20 main suppliers across the 3 categories of wafer, packaging and testing to make sure that they comply with the local environmental laws, as well as to engage in ongoing improvements in terms of energy conservation and GHG emissions reduction. Also, the zero-carbon objective and action plan guidelines for 2030 and 2050 have been formulated.

Green Transportation

In terms of the daily commute, we encourage our colleagues to make use of public transport or carpool; in terms of business travel, besides asking our colleagues to utilize public transport, they are encouraged to conduct meetings using the video conferencing system to minimize carbon emissions from transportation.