Climate change mitigation and adaptation

The first electronic distributor to disclose TCFD in Taiwan 

 

  Synnex is a high-tech industry channel integration service provider. Although we are not in a high pollution industry, as a citizen of the earth, it is our duty to mitigate and adapt to the threat of climate change. Synnex has signed up to become a TCFD supporter and, based on the Recommendations of the Task Force on Climate-Related Financial Disclosures framework, is identifying risks and opportunities that climate change may bring and making preliminary assessments of its potential financial effects and other impact.

 

  The changes in consumer behavior due to the tightening of domestic and foreign climate-related laws and regulations, and more frequent occurrences of extreme weather events could potentially impact our revenue, product value, and even reputation. Thus, the company is gradually improving the identification and management methods of climate-related risks and opportunities, and formulating corresponding strategies in hopes of building the company and its customers' ability to move towards low-carbon transformation and contributing to the sustainable development of the world.

  

Synnex TCFD

 

Climate governance Synnex has incorporated climate change issues into the overall sustainable governance and risk management affairs to demonstrate our determination to promote sustainable development. The CSR Committee is responsible for the supervision and management of the company's overall sustainability issues and climate-related risks and opportunities, and regularly reports the results of implementation to the President (CSR Committee Chairman). The environment team will drive and guide the specific actions to respond to climate change.

 

Climate strategies To respond to the potential impacts of climate change effectively, Synnex has planned specific management practices. The CSR environment team regularly researches and collects feedback from various business departments to identify and evaluate major climate-related risks and opportunities. The team discusses corresponding countermeasures or practical strategies through work group meetings to help mitigate potential climate risks and understand sustainable opportunities.

 

Risk management Synnex proactively manages climate-related risks and incorporates factors such as climate change mitigation and adaptation into the company's operational strategies and preventive maintenance plans for proper execution and effective responses to climate-related risks.

 

Climate indicators and targets 1. Taking 2019 as the baseline date, carbon emissions per shipped box will be reduced by 3% compared to the baseline date by 2024.
2. Taking 2019 as the baseline date, the per capita water use intensity will be reduced by 3% compared to the baseline date by 2022.

 

 

Results of identification of climate-related risks and opportunities in 2020

Aspect

Policy and regulations

Issue

Operations are subject to local carbon reduction regulations

Description of potential risks

To slow down the emission of carbon dioxide, governments of various countries have successively stipulated relevant emission regulations. Synnex has operating bases all over the world. Although Synnex does not emit a large amount of carbon dioxide, we may still be subject to local regulations and incur additional carbon reduction costs.

Expected impact time frame

Mid term

Potential financial impact

Increased costs

Response measures

1. Continue to monitor legislative changes and trends for each operating base.

2. Set energy saving and carbon reduction targets for the group.

3. Replace energy-consuming equipment.

 

Aspect

Supply chain management

Issue

Supply chain cut off

Suppliers pass on costs

Description of potential risks

As climate change intensifies, the occurrence of extreme weather events increases. This may lead to disruptions in our supply chain that will cause delays in delivery, which may decrease our revenue and damage our reputation.

Suppliers’ production costs increase due to climate changes. This may increase the purchase price of products. The price increase will affect the competitiveness of its products, which may affect our profitability.

Expected impact time frame

Mid term

Long term

Potential financial impact

Decline in revenue

Response measures

1. Improve supply chain flexibility.

2. Invest in digital products and services.

3. Purchase multiple brands and expand business scale.

 

Aspect

Climate Warming

Issue

Increase in energy consumption and water  consumption.

Description of potential risks

Increase energy consumption and water consumption result in higher operating costs.

Expected impact time frame

Long term

Potential financial impact

Increased costs

Response measures

1. Green energy conservation projects.

2. Switch to energy-saving lighting.

 

Aspect

Distribution management

Issue

More efficient distribution tools and systems

Description of potential opportunities

Emissions from transportation is one of Synnex’s significant emission sources. By optimizing distribution routes and eliminating vehicles with inefficient fuel consumption, energy can be used more efficiently, thereby reducing carbon emissions and energy costs.

Expected impact time frame

Short term

Potential financial impact

Decline in costs

Practical strategies

1. Build a smart logistics management system to optimize distribution routes

2. Procure vehicles or new energy vehicles that meet energy consumption standards

 

Aspect

Products and services

Issue

Increased customer demand for low-carbon products and services

Description of potential opportunities

Under the trend of worldwide low-carbon transformation, customers are more willing to support low-carbon and environmentally friendly products. If Synnex can provide products and services that meet the needs of the market, our revenue and reputation will be enhanced.

Expected impact time frame

Short term

Potential financial impact

Increase in revenue

Practical strategies

1. Continue to monitor market demand and low-carbon trends.

2. Suppliers purchase products that meet low-carbon trends.

3. Strengthen digital services.

4. Use vehicles or new energy vehicles that meet energy consumption standards.

 

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