Climate Change

Climate change impacts all economies across the globe and has profound effects on global sustainable development. The Group dedicates to mitigating and adapting to the risks and opportunities arising from climate change. We adopt the TCFD-recommended framework to identify the Group’s climate-related risks and opportunities in developing effective strategy, indicators, and targets for management, as well as publicly disclose our work plans in accordance with the four core elements of TCFD framework: “Governance”, “Strategy”, “Risk Management” and “Metrics and Targets”.

The Board of Directors is responsible for overseeing climate-related risks and opportunities, as well as managing 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 systemic 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.

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.