Sustainability Committee: The top organization for climate change management

The Sustainability Committee is responsible for supervising and managing the company's overall sustainability issues and climate-related topics. It reports regular updates on progress to the Chairman. The plans and reviews are reported to the Board of Directors quarterly since 2022.

ESG Environment Team: Implement the projects in accordance with the strategies and objectives developed by the committee

•Regular research: Environment team gathers feedback from each business unit.

•Identification and evaluation: Climate-related risks and opportunities

•Develop strategies:  Meetings are held to discuss appropriate measures in mitigating potential climate risks and grasp sustainable opportunities.

•Based on the TCFD framework: Building up the identification procedure for SYNNEX's climate risk.

•Incorporate in operational strategy: Develop preventive maintenance plans to mitigate and adapt to climate change.

•Proactive approach: Adopt necessary set-up and investments to manage climate-related risks.

Metrics and Targets

•Anchor: Climate change related indicators of management.

•Review: Annual achievements and actual performance.

•Analysis: Annual achievements and improvements.

Global warming

Increasing  use of electricity or water

Description of potential risks

Increased use of electricity or water due to climate warming may result in increased operating costs.

Expected impact time frame

Mid term/Long term

Potential financial impact

Increased costs 

But no significant impact

Response measures

1. Promote energy conservation and carbon reduction measures at our operating sites

2. The new headquarters building has adopted a composite glass curtain system with a built-in sun tracker system that automatically adjusts lighting and air-conditioning to conserve energy, aiming to achieve the LEED Gold certificate.

3. Actively replace and upgrade office equipment in various operating sites; new offices will all use wireless phones, wireless Internet, and LED lighting, etc.

Extreme weather events

Disruptions in supply chain

Description of potential risks

As climate change intensifies, the occurrence of extreme weather events also 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.

Expected impact time frame

Mid term

Potential financial impact

Decline in revenue

But no significant impact

Response measures

1. Synnex's product management strategy adopts a multi-category, multi-brand, and multi-market approach,which effectively diversifies risks and reduces the overall impact of any single extreme weather event on the Group's operations.

2.Establish standard operating procedures for various emergency responses.

3.Synnex has built 26 logistics centers across the Asia-Pacific region and partnered with dozens of warehouse providers. If a single logistics center is affected by an extreme weather event and cannot operate normally, the Group can immediately activate its alternative shipping mechanism through its logistics and warehousing backup network, thereby minimizing the impact.

Policy and regulations

Continued development of climate change-related policies and actions

Description of potential risks

To limit any adverse effects that may contribute to climate change and to promote adaptation to climate change, related policies and regulations may increase the company's operating costs.

As losses from climate change increase, the risk of climate-related litigation may also increase accordingly.

Expected impact time frame

Mid term

Potential financial impact

Increased operating costs

Increase in penalties and litigations

But no significant impact

Response measures

1.  Establish an internal inventory of electricity and water consumption, carbon emissions, and other data, and regularly inspect the effectiveness of environmental protection measures

2. Actively undertake stakeholder engagements including discussion with the competent authority and relevant organizations, and pay close attention to changes in domestic and foreign laws and regulations

Supply chain management

Green supply chain

Description of potential risks

Our supply chain jointly pursues green sustainability, and greenhouse gas reduction management has become a necessary evaluation criteria in the procurement process. It is SYNNEX's responsibility to satisfy the needs of our customers and to seize the ESG trends together with customers.

Expected impact time frame

Mid term

Potential financial impact

Increased costs

But no significant impact

Response measures

1. Plan to obtain ESG-related third-party assurance/verification

2. Plan to deploy applicable international standards (such as ISO)

Supply chain management

Transferred-in costs from suppliers

Description of potential risks

The impact of climate change has led to an increase in the overall operating costs of the supply chain, affecting product circulation efficiency and industry profitability.

Expected impact time frame

Long term

Potential financial impact

Increased costs

But no significant impact

Response measures

Synnex should ensure the inclusion and completeness of climate risk-related provisions in various agency and sales contracts signed with upstream and downstream partners.

Reputational risk

Reputation management

Description of potential risks

Failure to actively address stakeholders' issues of concern related to climate change will affect the company's image and credibility

Expected impact time frame

Long term

Potential financial impact

Decreased revenue

But no significant impact

Response measures

Synnex Group is a distribution and integrated service provider in the high-tech industry and operates as a non-manufacturing enterprise with a low energy consumption profile. As such, the company’s operations have a relatively limited direct impact on climate change. Nevertheless, in response to the concerns and expectations of its stakeholders, Synnex actively establishes communication channels and proactively discloses specific actions and ongoing efforts to address the risks and opportunities associated with climate change.

Technology Risk

Support low-carbon, high-performance technological improvements and innovations

Description of potential risks

There may be lower-carbon substitute products or services, or an increase in operating costs by switching to low-carbon technologies and renewable energies

Expected impact time frame

Mid term/Long term

Potential financial impact

Increased operating costs

But no significant impact

Response measures

1.  Promote the digitization of operational processes (digital signature, digital operations, electronic invoices)

2. Continue to promote low-carbon operations, implement cardboard box recycling and reuse, and digitization of operations

Supply chain sustainability

Increased customer demand for low-carbon products and services

Description of potential opportunities

Implement connectivity of digital information in the service process to integrate the upstream, midstream and downstream supply chain into a highly digitalized and energy-saving green supply chain and satisfy the needs of vendors and customers for low-carbon services, thereby achieving  Co-existence, Co-prosperity, and Co-benefits   of the industrial ecosystem!

Expected impact time frame

Mid term

Potential financial impact

Increased revenue

Practical strategies

1. Collaborate with partners to promote the application and development of clean technology solutions, meeting the demand across industries for high-efficiency and low-energy-consumption products.

2.Actively expand and develop a business network for green energy product lines.

Supply chain sustainability

By emphasizing supply chain sustainability and operational resilience, we will build a cloud warehouse operation mechanism that reduces carbon emissions and conserve energy through maximizing resource utilization efficiency.

Description of potential opportunities

Short-chain logistics has become a prominent part of the supply chain. By reducing the physical logistics nodes in the upstream and downstream of the supply chain and simplifying the supply chain process, we are striving toward optimizing the efficiency of the use of the planet's resources, and this is also an excellent opportunity for Synnex to seize important logistics resources.

Expected impact time frame

Mid term

Potential financial impact

Decreased costs

Increased revenue

Practical strategies

1.Transparent Information: By fully integrating operational value information, key business data such as transaction flow, logistics flow, and cash flow become clear and transparent.

2.Mutual Benefit through Cloud Warehousing: The cloud warehouse mechanism is based on resource sharing and mutual benefit. It brings together the essential logistics needs of supply chain participants, enabling them to share warehouse space and delivery resources. This allows participants to benefit from the economies of scale and improved resource utilization.

3.Energy-Saving Logistics Flow: Focused on managing ownership of goods rather than physical movement, ensuring “account movement without goods movement,” thereby reducing transportation.

4.Direct-to-Consumer Delivery: Products are delivered directly to consumers, resolving the multi-node logistics issues of traditional trade models, and shortening order processing time, distance, and logistics costs.

5.Automated Business Processes with Integrated Information Systems:Business processes are automated through the seamless integration of system information.