Climate change mitigation and adaptation

    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. 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 actively supports the work of the Task Force on Climate-Related Financial Disclosures (TCFD), and discloses this year's progress and results according to the recommended framework.

 

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.

 

Results of identification of climate-related risks in 2019

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

4. Purchase renewable energy

 

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

 

Results of identification of climate-related opportunities in 2019

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

 

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.

 

Carbon emissions 2015 2016 2017 2018 2019
Carbon emissions(T) 4,577 4,469 4,638 4,553 4,112
Rate of change based on 2015(%)   -2.4% 1.3% -0.5% -10.2%
Carbon emissions(KG)/number of boxes shipped 1.00 0.97 1.09 1.04 1.04
Rate of change based on 2015(%)   -2.5% 9.1% 4.7% 4.0%

Carbon emissions: Total electricity consumption/1920 + total fuel consumption/442

 

Electricity 2015 2016 2017 2018 2019
Electricity usage(kWh) 6,257,539 5,932,177 6,182,492 5,950,366 5,290,041
Rate of change based on 2015(%)   -5.2% -1.2% -4.9% -15.5%
Electricity usage/number of boxes shipped 1.36 1.29 1.45 1.36 1.33
Rate of change based on 2015(%)   -5.3% 6.3% 0.0% -2.1%

Electricity consumption: 1tCO2≒1,920 kWh

 

Petrol 2015 2016 2017 2018 2019
Amount of petrol used(L) 582,361 609,557 626,530 642,756 599,591
Rate of change based on 2015(%)   4.7% 7.6% 10.4% 3.0%
Petrol usage/number of boxes shipped 0.127 0.132 0.147 0.147 0.151
Rate of change based on 2015(%)   4.6% 15.8% 16.1% 19.2%

Fuel consumption: 1tCO2≒442 L of fuel

 

回到顶部