Climate change mitigation and adaptation
The first electronic distributor to disclose TCFD in Taiwan
Synnex is a channel integration service provider in high-tech industry.Although we don’t belong to manufacturing industry featuring high pollution, it’s our duty to mitigate and adapt to the threats of climate change as a citizen on the earth.
In view of more frequent occurrences of global extreme climate, tightening up on climate-related regulations, and consumer's behavior changing nowadays, all conditions pose potential threats to our revenue, brand value, and reputation. Therefore, Synnex keep optimizing the measures of identifying and managing climate-related risks and opportunities, as well as developing strategies to improve the ability to low-carbon operation among itself and business partners, contributing to sustainable development of the world.
To uncover potential risks and opportunities, Synnex has followed the recommendations and framework of Task Force on Climate-related Financial Disclosures (TCFD) since 2019, and signed up as a TCFD supporter in Oct. 2021 to move ahead in environment protection and sustainable operation.
Synnex TCFD
| Climate governance |
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
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| Climate strategies |
•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.
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| Risk management |
•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.
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Metrics and Targets
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•Anchor: Climate change related indicators of management.
•Review: Annual achievements and actual performance.
•Analysis: Annual achievements and improvements.
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Results of identification of climate-related risks and opportunities in 2021
| Aspect |
Policy and regulations
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| Issue |
Business units are subject to local carbon reduction regulations
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Description of potential risks
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To slow down the greenhouse gas emissions, governments of various countries have successively amended relevant regulations. Operating globally, though Synnex doesn’t belong to manufacturing industry, we may still be subject to local regulations and incur additional costs of carbon reduction.
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Expected impact time frame
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Mid term
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Potential financial impact
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Increasing costs
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Response measures
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1.Keep an eye on local regulations changes
2.Review the progress of achieving the company's energy conservation and carbon reduction goals
3.Replace energy-consuming equipment
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| Aspect |
Supply chain management
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| Issue |
Green supply chain
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Pass-through costs from suppliers
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| Description of potential risks |
The supply chain jointly pursues green sustainability, and greenhouse gas reduction management has become a necessary evaluation item in the procurement process. It is SYNNEX's responsibility to meet the needs of our customers and keep abreast of ESG trends together with customers.
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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..
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Expected impact time frame
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Mid term
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Long term
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| Potential financial impact |
Increasing costs
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loss in revenue
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| Response measures |
1.Pay attention to ESG trends
2.Evaluate and implement applicable International Standards (ISO, etc.)
3.Plan to obtain ESG-related certifications by third-party.
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1.Optimize the portfolio of digital products and services
2.Provide supply chain service to multiple brands and expand business scale
3.Improve the overall supply chain flexibility
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| Aspect |
Climate Warming
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| Issue |
Increasing use of electricity or water
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Description of potential risks
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Increased use of electricity or water due to climate warming may result in increased operating costs
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Expected impact time frame
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Long term
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Potential financial impact
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Increasing costs
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Response measures
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1.Regular maintenance of equipment to maintain optimal performance
2.Evaluate the investment in energy conservation and renewable energy
3.Replace equipment to improve energy efficiency
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| Aspect |
Distribution management
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| Issue |
Continuous to improve the ERP system and to digitalize the operation process for distribution
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Description of potential opportunities
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GHG emission of delivery has been regarded as the largest portion of Synnex
•2020 overall replacement for Euro5 vehicles
•2021 Cloud Inventory Platform: Eliminate unnecessary warehousing and delivery among different parties, so that resources and emission plunged dramatically.
Measures above reach the goal of energy conservation and cost-cutting.
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Expected impact time frame
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Long term
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Potential financial impact
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Lowering costs
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Practical strategies
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1.Digital optimization: Cloud Inventory Service mechanism
2.Setting up intelligent logistics for distribution management
3.Regular maintenance for Euro5 vehicles
that meet the standards of energy consumption.
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| Aspect |
Products and services
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| Issue |
Client's increasing demand in low-carbon products and services
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Description of potential opportunities
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In the global trend towards low-carbon transformation, clients are more willing to support products featuring low-carbon and environmental protection.
It's Synnex opportunities to enhance revenue and reputation if we satisfy the markets with that kind of products and services.
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Expected impact time frame
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Short term
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Potential financial impact
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Increasing revenue
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Practical strategies
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1.Keep an eye on market demands and risks for low-carbon products and services.
2.Suppliers purchase products featuring low-carbon.
3.Optimizing digital services.
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