Science-Based Targets initiative (SBTi)

Simplo signed the “SBTi Commitment” in 2021 and submitted the carbon reduction target in 2022. Simplo sets emissions reduction targets in line with a 1.5°C future, and Group’s near-term emissions reduction targets are approved by the SBTi in May 2023 (note1). Simplo is the first company in the global battery module manufacturing industry to pass the review. Simplo commits to reduce absolute scope1 and 2 GHG emissions 51% by 2030 from a 2020 base year. Simplo Technology also commits to reduce absolute scope3 GHG emissions from purchased goods and services 25% within the same timeframe.

In the future, Simplo will actively take carbon reduction actions, including: introducing the ISO 50001 management system, installing solar PV systems, signing renewable energy power purchase agreements, designing green products, using recycled materials, etc. At the same time, key suppliers will be included in the emission inventory and emission reduction actions, implement carbon reduction goals, and built a sustainable partner co-prosperity ecosystem.
 

Simplo Group Carbon 2050

Internal Carbon Pricing (ICP) Strategy

Facing the generation of low-carbon emission or zero-carbon emission, the international community has promoted carbon fees and Carbon Border Adjustment Mechanism (CBAM), which will increase the carbon cost burden of the industry. Carbon risk management has become an important topic for companies, and companies are also aware of the profound impact of carbon risks on operations, thus launching the ICP mechanism. Simplo is committed to implementing the sustainable strategy blueprint, moving towards the goal of low carbon emissions or even net zero carbon emissions. In order to accelerate the group's carbon reduction actions, Simplo actively develops an ICP mechanism and tracks the international carbon trading market as reference for internalize external costs. Valuation of carbon emissions promotes the reduction of carbon emissions in the group's internal activities. In addition to developing low-carbon processes in the manufacturing process, it can also encourage employees to implement energy conservation and carbon reduction in their work, and strengthen the company's low-carbon culture.

Carbon Disclosure Project (CDP)

In 2025, Simplo Group was be awarded a “B” rating by CDP. According to the CDP guidelines, a B rating indicates that a company is showing some evidence of managing its environmental impact. At the same time, CDP announced the results of the 2025 Supplier Engagement Assessment (SEA), and Simplo Group was rated "A", which shows that our carbon reduction management efforts and action results are both affirmed by international evaluations.

Task Force on Climate-Related Financial Disclosures (TCFD)

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Simplo Group references the core elements of TCFD for disclosing information related to “climate governance, strategy, risk management, and goals”. This helps assess climate-related risks and opportunities affecting business operations, formulate strategies and actions to address climate change, enhance transparency in disclosure, and implement corporate climate governance effectively.

Core elements	Item	Description
1. Governance	(a) Board of Directors supervision methods (b) Management roles	1. Regularly report on the results to the Board of Directors: The Board of Directors serves as the highest decision-making body for climate risk management, supervising and guiding the Company’s climate strategy and the progress of climate-related objectives. 2. Material issue management: The management regularly reviews climate risk issues, incorporating them into material issue management through the operation of the CSR Sustainability Committee.
2. Strategy	(a) Climate-related risks and opportunities (b) Impact of climate-related risks and opportunities on the organization's business, strategies, and financial planning (c) Climate scenario analysis	1. According to the internal risk control and management timeline, short-term is defined as 1 to 3 years, mid-term as 3 to 5 years, and long-term as 5 to 10 years. Collect stakeholder needs and climate change issues accordingly. 2. Assess climate change scenarios and evaluate related risks and opportunities based on the TCFD framework.
3. Risk management	(a) Evaluation process (b) Management process (c) Risk management system	1. Referencing ISO 31000 risk management guidelines, establish a quantitative risk assessment method. Utilize the operation of a risk working group to conduct risk assessments, enabling risk monitoring and management. 2. Risk identification process: (1)Establish a risk working group composed of managers and above from various departments. This group will report its operations to the Board of Directors. (2)Conduct inventory and verification of Scope 1, 2, and 3 GHG every year. (3)Launch product lifecycle inventory and improvement of critical areas.
4. Indicators and targets	(a) Indicators for assessing climate-related risks and opportunities (b) GHG emission volume Goal implementation review (c) Goal implementation review	1. Passed the review of the SBTi (1.5 ℃ near-term) target, using 2020 as the base year, aim to reduce absolute Scope 1 and 2 GHG emissions by 51% by 2030. Additionally, reduce absolute Scope 3 emissions related to “purchased goods and services” by 25%. 2. Joining RE100 and committing to use 100% renewable energy in global operations of Simplo Group by 2040. 3. Conduct annual organizational ISO 14064-1 GHG inventory and verification to review progress towards carbon reduction targets. 4. Continuously engage with suppliers to achieve supply chain management goals.

 

Climate Scenario Analysis

For transition risk, Simplo Technology references the International Energy Agency (IEA)'s latest World Energy Outlook 2024 (WEO 2024); for physical risk, it references the greenhouse gas emissions scenarios put forward in the Sixth Assessment Report (AR6) of the Intergovernmental Panel on Climate Change (IPCC). Simplo Technology references the greenhouse gas emissions scenarios put forward in the Sixth Assessment Report (AR6) of the Intergovernmental Panel on Climate Change (IPCC), adopting ensemble models and Shared Socioeconomic Pathways (SSP) to conduct its physical risk analysis: ǝ Climate scenarios: taking into account the SSP1-2.6 and SSP5-8.5 (very high emissions) scenarios, projecting changes in Simplo (Taiwan)'s annual average temperature, daily maximum temperature, and precipitation through 2050. [Note: the 2025 source narrows the scenario set from all four SSPs used in 2024 down to just SSP1-2.6 and SSP5-8.5 - flagging this scope change for verification.] ǝ Using the observed annual average temperature of 22.4℃ in 2020 as a baseline, by 2050, under the SSP2.6 scenario, Simplo (Taiwan)'s annual average temperature will rise to 23.3℃, and under the SSP8.5 scenario, it will increase to 23.9, with an increase ranging between 0.9℃ and 1.5℃.

Using the observed precipitation of 2.9 mm/day in 2020 as a baseline, by 2050, under the SSP2.6 scenario, Simplo (Taiwan)'s precipitation will decrease to 2.7 mm/day, and under the SSP8.5 scenario, it will increase to 4.2 mm/day. Without mitigation actions, the frequency of extreme rainfall events will gradually increase. Enhancing emergency response capabilities and maintaining operational resilience will become operational risk issues faced by the Company

I. Financial impacts and response to climate-related risks

Type	Climated-related risks	Potential financial impact	Response actions
Transformation risk	Policies and regulations 1. Carbon pricing: Carbon fees/taxes 2. GHG 3. Electricity conservation requirements for large consumers	Responding to regulatory requirements leading to increased operational costs	1. Energy conservation and carbon reduction solutions 2. ISO 50001 continuous improvement 3. Installation of renewable energy (PV) 4. Purchase renewable energy certificates
	Technology 1. Investment in new technology 2. Costs of low-carbon transformation	1. Customers request the use of renewable energy 2. The increased cost of developing low-carbon products 3. Costs incurred from new process development	1. Low-carbon technology transformation and introduction of low-carbon processes 2. Management of circular resource use and reuse 3. Responding to international ecolabelling requirements
	Market 1. Changes in customer behavior 2. Market information uncertainty 3. Increased raw material costs	1. Customer and market demand changes affecting orders 2. Uncertainties such as green inflation	1. Assessing new markets for green transformation 2. Developing energy storage business to meet market demand
	Reputation Impact on the Company's image	Inability to meet customer or stakeholder expectations leading to revenue decline	1. Increase stakeholder trust 2. Enhancing transparency of disclosure of sustainability information 3. Engaging deeply in external communication with stakeholders 4. Strengthening external ESG performance evaluations
Physical risk	Immediateness Extreme weather led to an increase in abnormal rainfall and droughts	1. Decreased production capacity or disruptions (e.g. shutdowns, transportation difficulties, supply chain interruptions) 2. Impact on the workforce (e.g. health and safety, absenteeism)	1. Enhance emergency response capabilities 2. Ensuring safety inventory in the supply chain to avoid supply chain disruptions
	Long-term Extreme variability in climate patterns	Chronic climate change (e.g. average temperature rise/sea level rise)	1. Enhance emergency response capabilities 2. Ensuring safety inventory in the supply chain to avoid supply chain disruptions

II. Financial impacts and response to climate-related opportunities

Type	Climated-related opportunities	Potential financial impact	Response actions
Resource efficiency	Improve operational management efficiency	1. Enhance resource usage efficiency 2. Increase production capacity and increase revenue	Introducing post-consumer recyclable plastic materials (PCR) and reusable packaging materials (Tray)
Energy sources	Using low-carbon energy and evaluate participation in the carbon trading markets	1. Reduce the risk of GHG emissions 2. Increased investor confidence, enhanced reputation, and higher demand for products and services	1. Energy conservation and carbon reduction solutions 2. ISO 50001 continuous improvement 3. Installation of renewable energy (PV) in the plant 4. Purchase renewable energy certificates
Products and services	1. Increasing opportunities for low-carbon products and services 2. Enhancing R&D and innovation through a low-carbon economy 3. Diversification of business activities	Harnessing the advantages of new technologies to enhance the performance of various products and achieve market-leading energy efficiency	Meeting climate adaptation needs through innovative solutions to increase revenue
Resilience	1. Improve the adaptability and resilience of business operations 2. Use high-efficiency raw materials to reduce costs	1. Assess supply chain operational capabilities 2. Develop new products and services to increase revenue	1. Increase R&D capacity and continuous innovation 2. Develop energy storage market

 

 

Greenhouse Gas Inventory

Simplo Group refers to ISO 14064-1:2018 GHG inventory standards and guidelines such as the Greenhouse Gas Protocol published by the World Resources Institute (WRI) to establish a GHG inventory mechanism. Since 2019, annual GHG inventory have been conducted at each plant to comprehensively understand GHG usage and emissions. Starting from 2021, these data have been verified by third parties.

The greenhouse gases inspected include: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and other gases.

Direct and energy indirect GHG emissions (Scope 1 and Scope 2)

Item	Unit	2020	2021	2022	2023	2024	2025
Direct (Scope 1) GHG emissions	ton CO2e	2,355	1,997	1,911	1,949	1,766	2,834
Indirect (Scope 2) GHG emissions	ton CO2e	127,178	84,391	13,568	26,179	13,482	15,859
Total GHG emissions	ton CO2e	129,533	86,388	15,479	28,128	15,248	18,693
Emission intensity	ton CO2e / NTD million in revenue	1.52	0.90	0.16	0.33	0.19	0.23
Emission intensity	kg CO2e / PCS	0.50	0.32	0.08	0.16	0.09	0.11

Note
1. The disclosure scope of the data in the above table is the parent and subsidiary companies of Simplo Group's consolidated financial statements (Not included in Simplo Vietnam).
2. . Simplo Vietnam commenced production at the end of 2025 and will begin conducting a full-year GHG inventory calculation starting in 2026.
3. The inventory is done with the operation control. The figures of the GHG inventory are certificated by third-party.
4. GWP value is taken from the IPCC 2021 Sixth Assessment Report.

 

 

Other indirect GHG emissions (Scope 3)

Simplo has established a GHG inventory and assesses the significance of the items in the C1-C15 categories by GHG protocol. Based on the significance of the analysis results, 7 categories were included in the inventory items, and verified by a third party in accordance with ISO 14064-1. The item with the highest emissions is the purchased goods and services in 2025, accounting for 93%, which is a key item for the subsequent reduction. 

 

Scope 3 Category	2025 carbon emissions (ton CO2e)
C1 Purchased Goods and Services	410,186.77
C3 Fuel- and Energy-Related Activities (Not Included in Scope 1 or Scope 2)	10,608.91
C4 Upstream Transportation and Distribution	6,616.24
C5 Waste Generated in Operations	91.40
C6 Business Travel	535.48
C7 Employee Commuting	1,095.05
C9 Downstream Transportation and Distribution	10,033.33

Note：
1. The disclosure scope of the data in the above table is the parent and subsidiary companies of Simplo Group's consolidated financial statements (Includes Simplo Vietnam, 2024 GHG emissions category 1 cells).
2. Including GHG protocol categories 1, 3, 4, 5, 6, 7, 9.
3. GWP value is taken from the IPCC 2021 Sixth Assessment Report.