TCFD
This year, following the recommendations of domestic sustainability regulations, Gamania took in advance to introduce the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to promote the transparency of information disclosures regarding climate-related risks and opportunities, and progressively set up a management mechanism for climate risks and opportunities which is expected to be integrated with the company’s risk management process in the future. We thereby facilitated low-carbon transformation and strengthened climate resilience based on four strategic directions: governance, strategies, risk management, and metrics and targets.
In August 2023, Gamania’s Board of Directors passed the Group’s “Net Zero Declaration,” committing itself to a 78% reduction in Scope 1 and Scope 2 carbon emissions by 2030 compared to the emissions in 2022, achievement of Scope 1 and Scope 2 carbon neutrality, and fulfillment of net zero carbon emissions by 2050. To keep in line with Taiwan’s net zero carbon emissions policy, we actively devise carbon reduction plans, including the replacement with power-saving equipment and purchase of green power in the short term, and changes to the energy use model of data centers in the medium and long term, thereby implementing energy conservation and carbon reduction, building low-carbon data centers, and providing services of better quality. The year 2023 marks the first year of utilization of green energy for Gamania Group. As of March, the group’s headquarters has commenced the use of approximately 21% solar green electricity. Our carbon reduction commitment has even been certified by CommonWealth’s “Temperature Rising Index for Pathways” for compliance with the target for a temperature rise limit of 1.5°C under the Paris Agreement.
Governance
In response to climate change issues, Gamania established a “TCFD Team,” which was jointly managed by the relevant members gathered by the “Environmental Symbiosis Team” and ” Sustainability Planning Office.” The Head of Internal Service Division was responsible for managing and carrying out environment-related projects such as greenhouse gas inventory and carbon reduction actions, and reported to the Sustainable Development Committee and the Board of Directors on a regular basis. The Board of Directors provided full authority and guidance on climate-related issues, such as the Net Zero Declaration, carbon reduction targets, and strategic planning.
Strategy
In the climate risk assessment and prioritization processes, the Net Zero Emissions by 2050 Scenario (NZE) of the International Energy Agency (IEA) and the RCP2.6 and RCP8.5 scenarios* of the Intergovernmental Panel on Climate Change (IPCC) were included to discuss the risks and opportunities Gamania could face in different climate scenarios. For operational deployment, strategy formulation and financial planning, carbon emission factors were taken into account; short-, medium- and long-term targets and action plans covering renewable energy use, replacement with energy-saving equipment, supplier selection, platform and big data installation, etc. were accordingly set, to gradually reduce the negative environmental impact of our operations through environmentally friendly measures.
Risk management
After the list of climate-related risks and opportunities was compiled, relevant departments identified and assessed the risks and opportunities for Gamania’s value chain, and made significance assessment of risk hazards based on the level of impactand level of vulnerability of each risk with reference to the common risk management practices, and sorted the risks in order based on the significance.The results were eventually integrated into the Group’s risk management system for timely preparation and implementation of response measures.
Metrics and Targets
All departments of Gamania jointly managed climate-related issues based on their respective responsibilities. The Internal Service Division was the primary responsible unit for promoting carbon reduction actions, and used carbon emissions as the climate indicator for internal management. For climate opportunities, Gamania internally introduced low-carbon technologies and services to the Group in an active manner, and included carbon emissions as one of the assessment factorsin terms of platforms and big data, agency for new products, and self-developed new products
Since 2022, Gamania has been conducting greenhouse gas inventories in accordance with the ISO 14064 standard, which have been verified. In 2023, Gamania Group announced the “Net Zero Declaration,” giving a commitment that it will achieve net zero carbon emissions by 2050 and set relevant indicators for follow-ups. In terms of electricity consumption, the Company achieved its goal of reducing per capita electricity consumption by more than 1% annually in 2024, with a 313 kWh decrease compared to 2023, a reduction of approximately 4.87%.
Gamania adopts different climate scenarios to identify potential impacts of climate-related risks and opportunities on its business and to formulate comprehensive response strategies. The climate scenarios used are from the World Energy Outlook report published by the International Energy Agency (IEA) and the Sixth Assessment Report published by the Intergovernmental Panel on Climate Change (IPCC).
Since all of Gamania’s operations are located in Taiwan, the Company has developed a context-specific climate risk adaptation plan tailored to local conditions. Through its climate risk assessment, Gamania identified two major physical climate risks relevant to its operations: drought events and rising average temperatures. The adaptation plan therefore directly addresses these risks, covering 100% of the Company’s operations.
For drought and water scarcity risks, Gamania has implemented measures to enhance water resource efficiency and resilience, including strengthening building infrastructure, establishing emergency response procedures, and adopting comprehensive water resource management policies. These actions aim to reduce dependence on municipal water supply and ensure operational continuity during extreme weather events.
To mitigate the impacts of rising temperatures, Gamania has introduced multiple energy efficiency and cooling measures, such as the use of environmentally friendly refrigerants in office and data center cooling systems, optimizing building ventilation and air-conditioning systems, and adopting energy-saving practices to reduce power consumption. These efforts not only minimize operational disruptions but also lower the Company’s carbon footprint.
The adaptation plan is reviewed on a regular basis and updated to reflect evolving climate scenarios. Gamania is committed to enhancing its resilience against physical climate risks while ensuring sustainable operations in Taiwan.
In 2024, based on the previous year’s identification results, the top three risks were identified as key issues. These include transition risks (collection of carbon tax/fee, increased energy and raw material prices) and physical risks (extreme weather events—droughts and rising average temperatures). The potential financial impacts, countermeasures, and management plans for these key risks are detailed in the following table:
In 2024, Gamania considered its industry characteristics and industry benchmarks, and established a list of climate-related opportunities. The TCFD team evaluated and confirmed that these opportunities align with Gamania’s business philosophy and strategic direction. The team identified potential climate opportunities and business prospects under the low-carbon transition trend, including resource efficiency, products and services, and green procurement/supply chains. We have further formulated internal strategies and goals, and management and action plans, as described in the following table:
Unit: tCO2e
Note 1: Category 1 increased this year. Previously, R22 refrigerant was not included in the inventory calculation because it is a substance controlled under the Montreal Protocol. However, as ISO 14064-1 does not explicitly exclude substances controlled under the Montreal Protocol and states that “…other appropriate greenhouse gas groups shall be quantified separately,” R22 refrigerant has been included in this inventory calculation. Additionally, R600a refrigerant has also been included in this inventory calculation due to the availability of a credible Global Warming Potential (GWP) value.
Note 2: Category 3 includes upstream (downstream) transportation, employee commuting, and business travel.
Note 3: Category 4 includes emissions from the products purchased by the Company, capital goods, disposal of solid and liquid waste, and the use of other services.
Note 4: Category 5 includes emissions from downstream leased assets.
Note 5: Based on the significance, this inventory excludes emissions from visitor transportation, upstream leased assets, product use, final product disposal, franchise, and investments.
Note 6: The electricity emission factors are based on the figures published by the Bureau of Energy, which were 0.502, 0.509, 0.495, and 0.474 (kg/kWh), respectively from 2021 to 2024. The 2024 factor for Hong Kong was 0.540 (kg/kWh).
Note 7: 2021-2024 data coverage rate is 100%, calculated based on the operating income. The 2024 data additionally includes Gamania Hong Kong.
Gamania took the lead in complying with regulatory requirements starting in 2021 by introducing ISO 14064-1:2018 and obtaining certification. Henceforth, we continue to track carbon reduction performance based on greenhouse gas inventories, and move towards the net-zero ambition through scientific and systematic carbon reduction.
In 2023, Gamania’s Board of Directors approved the Group’s Net-Zero Commitment, adopting 2022 as the base year. The Company has set a target to reduce Scope 1 and Scope 2 emissions by 90% and achieve net-zero emissions by 2050. To realize this goal, Gamania will expand the use of renewable energy, improve equipment efficiency, increase the share of green electricity procurement, and implement energy-saving measures across operations. For Scope 3 emissions, the Company will collaborate with suppliers to promote low-carbon materials and strengthen decarbonization practices throughout the value chain. Any residual emissions that cannot be eliminated through technological upgrades or efficiency improvements will be offset by purchasing internationally recognized carbon credits, while exploring long-term carbon removal solutions.
Since 2018, Gamania has initiated energy conservation and carbon reduction management policies and implementation plans, with recent plans as follows:
