Nuvoton Technology Releases Its First TCNFD Report, Aligning with International Sustainability Disclosure Trends | News

In response to evolving global sustainability trends, companies are not only expected to address the risks and opportunities associated with climate change but also to understand the potential impacts of natural capital and biodiversity on business operations and supply chains. To this end, Nuvoton Technology has released its first Taskforce on Climate-related and Nature-related Financial Disclosures (TCNFD) Report, integrating the internationally recognized TCFD and TNFD frameworks to establish a governance and management structure that addresses both climate- and nature-related issues.

In climate governance, Nuvoton continues to advance climate risk management and its net-zero transition in alignment with the TCFD framework. In 2025, the Company officially received validation from the Science Based Targets initiative (SBTi), committing to reduce its absolute Scope 1 and Scope 2 greenhouse gas emissions by 48.8% by 2030 from a 2022 baseline, and its absolute Scope 3 emissions by 25% by 2030 from a 2023 baseline, while steadily progressing toward its goal of achieving net-zero emissions by 2050.

In addition to decarbonization efforts, Nuvoton continues to strengthen its business resilience through renewable energy adoption, energy efficiency projects, and the development of green products. Nuvoton Japan has signed a renewable energy Power Purchase Agreement (PPA), with annual renewable electricity procurement expected to reach approximately 6.94 million kWh. This is estimated to reduce carbon emissions by approximately 3,270 metric tons of CO₂e per year. Based on an average annual carbon absorption of approximately 5 to 12 kg of CO₂ per tree, the emissions reduction is equivalent to the annual carbon absorption of approximately 270,000 to 650,000 trees, demonstrating the Company's continued progress toward a low-carbon transition. Meanwhile, Nuvoton Taiwan continues to promote solar power generation and energy efficiency improvement projects, reinforcing its commitment to low-carbon transformation through concrete actions.

On the nature-related front, Nuvoton adopted the TNFD framework and LEAP approach for the first time, completing an assessment of nature-related issues across its operations in Nuvoton Taiwan and Nuvoton Japan, as well as its global supply chain. Through this process, the Company established mechanisms to evaluate nature-related dependencies, impacts, risks, and opportunities. The assessment enabled Nuvoton to gain deeper insights into key topics such as water resource availability, climate regulation, flood resilience, ecosystem services, and supply chain stability. These findings will serve as an important foundation for developing nature-related management targets and indicators while strengthening environmental management and supply chain resilience.

Furthermore, Nuvoton has extended its nature-related initiatives beyond assessment and disclosure into tangible conservation actions. Since 2024, the Company has partnered with the Butterfly Conservation Society of Taiwan, National Yunlin University of Science and Technology, and the Biodiversity Research Institute of the Ministry of Agriculture to jointly promote the "Butterfly Revival– Protecting the Habitat of the Great Purple Emperor" project. Through habitat surveys, ecological monitoring, and environmental education activities, the project supports local biodiversity conservation and ecosystem restoration efforts, demonstrating Nuvoton's commitment to fostering harmony between business and nature.

Looking ahead, Nuvoton will continue to deepen the application of both the TCFD and TNFD frameworks by incorporating climate change, natural capital, and biodiversity considerations into its decision-making and risk management processes. The Company will also work closely with value chain partners to enhance operational resilience and promote sustainable business development.

For more information, please refer to the Climate-related and Nature-related Financial Disclosures (TCNFD) Report.