The Science Based Targets initiative (SBTi), launched by the United Nations Global Compact (UNGC) and the Carbon Disclosure Project (CDP), provides scientific approaches that can be certified by a third party to limit global temperature rise to below 1.5° within the carbon budget. Under this scenario, companies set reasonable carbon reduction targets.

ASUS, in accordance with the SBTi framework standards, aligned our scope with the consolidated financial statements of the Company. In 2023, ASUS Group, serving as the boundary, achieved validation of SBTi near-term science-based emissions reduction targets. Following a reduction pathway aligned with a 1.5°C scenario, with the base year set in 2021, ASUS commits to reducing absolute Scope 1 and 2 GHG emissions by 50% by 2030 from a 2021 base year. ASUS also commits to reducing absolute Scope 3 GHG emissions, which cover purchased goods and services and the use of sold products, by 30% within the same time frame. ASUS plans to further commit to the more ambitious SBTi Net-Zero pledge, guiding the entire group towards the net-zero target by 2050.
 

Furthermore, ASUS acknowledges that emission reductions within the value chain may be constrained by factors such as the feasibility and commercial viability of carbon reduction technologies. Therefore, achieving net-zero goals necessitates the importance and necessity of engaging in emission reduction actions beyond the value chain. In alignment with the recommendations outlined in the "Beyond Value Chain Mitigation" (BVCM) guidance released by SBTi in February 2024, ASUS plans to participate in carbon reduction projects that adhere to BVCM criteria.

To ensure investors and stakeholders understand our climate change response actions, ASUS has been publishing Climate-Related Financial Disclosure Reports since 2021, adopting the framework set forth by the Financial Stability Board (FSB) known as the Task Force on Climate-related Financial Disclosures (TCFD). In 2023, the International Sustainability Standards Board (ISSB) released the "IFRS Sustainability Disclosure Standards," providing globally recognized, comparable, and high-quality sustainability reporting. This year, ASUS has taken the lead in adopting the IFRS S2 "Climate-related Disclosures" as the reporting framework for climate-related financial disclosure reports. Outlined in IFRS S2, in addition to governance, strategy, risk management, indicators, and goals related to climate change, we have further disclosed the seven "Cross-Industry Metric Categories".

Since 2022, ASUS has committed to meet SBTi within the scope of consolidated financial reports. The complete organizational boundaries including ASUS global operations, Askey, AAEON Technology, ONYX Healthcare, Sino Speed Holdings, and Shinewave. We followed the framework and calculation principles of the GHG Protocol to conducte greenhouse gas (GHG) inventory, taking 2021 as the base year and utilizing third-party veried data to establish the near-term science-based targets (SBT) of ASUS Group. In 2023, we further align with our 2050 net-zero vision, introducing SBT net-zero commitment to promote carbon management and reduction across the entire Group.