Climate Leadership
Towards Net Zero Emissions
To actively implement the science-based emissions reduction targets approved by the Science Based Targets initiative (SBTi), ASEH has clearly defined both near-term and long-term decarbonization goals. We monitor progress through a digital management platform and hold quarterly technical exchange meetings to support five strategic actions, with a core focus on low-carbon product development. These include the use of renewable energy in manufacturing, requiring suppliers to provide low-carbon materials and high-efficiency equipment, promoting decarbonization across land, sea, and air transportation, and investing in carbon credits — all contributing to a phased achievement of transition goals.
By fully integrating an internal carbon pricing mechanism across all manufacturing facilities, ASEH internalizes the cost of greenhouse gas emissions to drive internal transformation and deliver increasingly low-carbon products and services to future generations.
To strengthen climate risk management and identify sustainability transition opportunities, ASEH began introducing internal carbon pricing in 2021 to promote low-carbon investments and boost energy efficiency. Currently, carbon pricing is implemented across 100% of our facilities, aligning fully with our climate-related strategies and objectives.
Internal carbon pricing allows us to identify and capture emerging low-carbon opportunities with high business potential to enhance our corporate competitiveness. At the same time, it enhances our effectiveness in complying with applicable regulations including the conduct of a comprehensive cost-benefit analysis on our carbon reduction efforts. Our internal carbon pricing system is integrated into select carbon reduction projects and financial planning to strengthen our climate risk adaptability, and support the further implementation of company-wide climate policies and goals, demonstrating our commitment to sustainable development and responsible investment.
In line with the concept of “implicit price,” each ASEH facility sets its own internal carbon prices (expressed in USD43 per tCO₂e of emissions)
Based on actual emissions and annual reduction targets, each manufacturing facility prepares an annual budget that reflects its internal carbon price. The budget would then be used in carbon reduction initiatives and low-carbon investments to reduce Scope 1 and Scope 2 greenhouse gas emissions, which would in turn help the facility reach its carbon reduction targets.
Ensuring the accuracy of supply chain carbon emissions data and implementing carbon reduction measures are crucial to achieving ASEH's goal net zero emission goals. In order to manage the carbon emissions effectively across our supply chain, we have established a management plan that is based on five key dimensions of "strategy and goal setting", "data inventory", "carbon reduction actions", "performance verification", and "establishing a low-carbon value chain ecosystem".
The use of low-carbon transportation is a key link in our journey towards net-zero emissions. We have categorized the field of transportation into cargo transportation, people transportation, and fuel and energy-related activities when inventorying land, sea, and air transportation. In 2024, we have already achieved 49% low-carbonization1 across all transportation modes. We have plans to fully low-carbonize the transport modes within the factories as well as upstream and downstream land transportation by 2045.
Low-carbonization of company vehicles, forklifts and trucks: The goal is to achieve 100% by 2040 and 2045.
Logistics Providers Engagement: Initiate the phased replacement of fossil fuel-powered vehicles, supporting the overall supply chain in reducing transportation-related emissions.
The first step in our low-carbon product action plan is to establish a carbon inventory of products as a baseline for performance measurement. ASEH has directed our three key subsidiaries to take concrete actions in reducing the product carbon footprint and accelerating our goal of carbon neutrality. To that end, our subsidiaries have conducted ISO 14067 carbon footprint and ISO 14045 eco-efficiency assessment of their respective products, identifying raw materials in greenhouse gas emission hotspots throughout the manufacturing process, engaged with suppliers to facilitate the development of low-carbon materials and switch to low-carbon materials, and increased the use of renewable energy in the manufacturing process. These actions closely resonate with ASEH’s philosophy of “producing more with less” and the principle of sustainable manufacturing by integrating key sustainability considerations throughout the product life cycle from the design stage, through manufacturing and distribution. Low-carbon products ultimately help to reduce greenhouse gas emissions and minimize their impact on the environment. For more information, please visit Sustainable Manufacturing.
2030：Achieve the scope of product Life Cycle Assessment (LCA) > 50%
2040：Achieve 100% coverage of product carbon inventory
Reduce the carbon footprint of key products 2% per year
In 2021, ASEH established the “Renewable Energy Platform” in response to global energy transition. We plan to continuously increase the proportion of renewable energy use through various means including the consumption of self-generated electricity, corporate power purchase agreements (CPPA), and purchase of unbundled energy attribute certificates (EACs). In addition, we are also integrating the approaches of different regions’ energy markets into our action plans to help the company reach its 2030 goal whereby 42% of total electricity consumption is from renewable energy sources.
The use of carbon credits forms the last mile in ASEH’s journey to net-zero emissions. In compliance with the SBTi’s framework, we anticipate to utilize carbon credits to offset our remaining carbon emissions beyond 2040 with priority placed on carbon removal credits. ASEH participated in the first batch of carbon credit trading at the launch of the Taiwan Carbon Solution Exchange in 2023, which also represented our first carbon credit trading from the Voluntary Carbon Market (VCM). The carbon credits are associated with a Chilean landfill gas (LFG) capture project. This project aligns closely with our commitment to six of the United Nations Sustainable Development Goals (SDGs)*, that allows us to drive environmental sustainability and the sustainable development of the local community and economy.
ASEH is committed to acquiring carbon credits of the highest quality in the voluntary carbon market, and at this stage, we are focusing on forest carbon sinks. While Afforestation and Reforestation (AR) are the only ways to acquire forest carbon credits in Taiwan at present, there are other carbon credit types available for consideration at the international level, such as the Improved Forest Management (IFM) and Avoid Deforestation (AD). In an effort to develop more diverse types of forest carbon credit projects that are in line with international standards, ASEH has partnered with the ASE Environmental Protection and Sustainability Foundation and joined forces with the International Climate Development Institute to develop an innovative carbon offset project involving forests in Taiwan. The ‘Project of Increasing carbon sink from the low stock forests’ has been submitted to the Ministry of Environment for review and approval. The project adopts the Verified Carbon Standard (VCS) as its primary reference, but also applies methodologies from international organizations like the Climate Action Reserve (CAR), the America Carbon Registry (ACR), and the J-Credit Scheme. The aim of the project is to formulate a comprehensive and localized carbon offset program for forest management that meets international standards of measurement, reporting, and verification (MRV). After the "Project of Increasing Carbon Sink from Low Stock Forests" passed the Ministry of Environment’s review and was officially announced in 2024, in 2025 we will apply this methodology to collaborate with Taiwanese forest farmers and assist them in obtaining carbon credits, thereby promoting sustainable forest management.
Upon approval from the ministry, we will expand the application of this methodology and help local forest farmers undertake activities for the sustainable management of forest land, and consequently be eligible for forest carbon credits.
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