Climate Change

Facing the stark reality that global temperature rise has exceeded the critical 1.5°C threshold, FIH has established an ambitious net-zero roadmap. In 2025, renewable energy accounted for 58% of total electricity consumption, surpassing the original 2030 target of 50% ahead of schedule. Building on this progress, FIH has set a more ambitious new target of 75% by 2030. In terms of climate risk management, the Group follows the IFRS S2 Climate-related Disclosures standard and applies its framework to identify climate-related risks and opportunities, enabling us to develop effective strategies, metrics, and management targets. In line with the framework's four core elements Governance, Strategy, Risk Management, and Metrics and Targets we publicly disclose our progress and plans.

FIH evaluates two scenarios: "Green" (low-carbon transition, with warming held between 1.5°C and 2°C) and "Brown" (high-emissions, with warming above 3°C). We draw on publicly available models from international organizations such as the IPCC, IEA, and NGFS, with forecasts covering the short-to-medium term (through 2030) and the medium-to-long term (through 2050). The Group has conducted a qualitative physical climate risk analysis of 12 key sites across Taiwan, China, Vietnam, India, Mexico, and the United States, assessing the potential impacts of eight major climate variables, including flooding, hurricanes, extreme heat, drought, and sea-level rise, and has developed corresponding mitigation and adaptation measures.

On transition risks, the Group has identified increased carbon taxes, investment needs for energy efficiency, and shifting market preferences as the main sources of risk, while also viewing them as strategic opportunities for low-carbon product development and improved operational efficiency. The Group's Sustainability Committee reports climate-related progress to the Board of Directors every quarter. In 2025, the Environmental task force held 34 cross-site weekly meetings with a cumulative 810 attendees, focusing on energy management, energy saving.

The Board of Directors is responsible for overseeing climate-related risks and opportunities, as well as overseeing FIH’s sustainability issues and material risks as part of its core mandate. In reviewing the corporate strategy, the Board evaluates climate-related risks to ensure the Group establishes robust internal control and Enterprise Risk Management (ERM) systems.

The ERM team and the Sustainability Office collaborate to monitor and manage climate risks while driving our sustainable transformation. These units are responsible for defining the net-zero decarbonization roadmap, minimizing climate impacts, and capturing potential opportunities arising from the transition. Furthermore, the relevant departments identify, assess, and mitigate material climate risks that could affect the achievement of FIH’s climate-related business and strategic objectives, assisting the Board in managing these risks by evaluating their impact on the company.

FIH emphasizes the importance of climate risk assessment and management in enhancing business resilience. We employ an integrated risk management approach, following standard ERM procedures to incorporate environmental factors into our risk management processes. This facilitates the identification, assessment, and management of climate-related risks. To effectively address emerging climate threats, we regularly monitor and review our risk management methodologies.

To achieve our climate goals, FIH has established five core strategies and implementation methodologies:

• Comprehensive Greenhouse Gas (GHG) Inventory

• Definition of Carbon Reduction Targets

• Operational Decarbonization (Energy-Saving Solutions)

• Increasing the Proportion of Renewable Energy Usage

• Promotion of Carbon Neutrality Strategies

Based on the assessment of climate-related risks and opportunities, FIH systematically integrates climate considerations into corporate strategies, policies, and actions, serving as the guiding principles toward Net Zero by 2050. We are committed to reducing GHG emissions across all stages of the value chain, enhancing resource efficiency, and accelerating renewable energy adoption in alignment with Hon Hai Technology Group’s SBTi roadmap, Climate Action 100+, and RE100 initiatives.

Our business units have successfully implemented various low-carbon practices as internal pilot cases, which are being scaled across our global operating sites to drive broader impact. By adhering to the TCFD framework, we continuously evaluate and disclose climate-related risks and opportunities, strengthening climate governance and accelerating the transition to a low-carbon economy, laying a solid foundation for achieving net-zero emissions by 2050.

FIH is committed to developing and driving concrete action plans to enhance the disclosure of the financial impacts of climate-related risks and opportunities. We have integrated climate risks into our corporate strategy, governance, and disclosure practices, establishing measurable Key Performance Indicators (KPIs). This integration enhances our ability to assess the likelihood and impact of climate risks within the ERM framework, improving efficiency in prioritizing, quantifying, and managing climate and other corporate risks.