ESG

Low Carbon Management Policy

In 2023, ASPEED Technology has determined its carbon reduction plans and strategies, which have been submitted to the Board of Directors for approval, with its short-, medium-, and long-term target plans detailed as follows. We will review rolling adjustments every year based on actual conditions and attention to changes in international regulations. In addition, as an important component of the global data center and customer application, ASPEED Technology’s chips can reduce chip energy consumption through our own R&D strength, which will benefit the decarbonization of the entire industry’s upstream and downstream supply chain. In the future, we will focus on how to continuously improve the energy consumption of our core products and to develop more revolutionary innovative applications to help reduce carbon emissions during our operations.

Net Zero Targets

ASPEED Technology set net-zero targets and paths in response to the SBTi SME Science-Based Targets initiative, and in November 2023, the application was approved. With the short-term target is of controlling short-term warming by 1.5°C, we have committed to achieve a 42% reduction in Scope 1 and Scope 2 GHG emissions by 2030, with 2021 as the base year. At the same time, we plan to conduct a comprehensive Scope 3 inventory through GHG Protocol in the medium to long term. We promise to reduce Scope 3 GHG emissions and achieve net zero by 2050.

Purchasing renewable energy to achieve decarbonization goals

Environmental Management

Waste Management

GHG Inventory and Carbon Reduction Planning

ASPEED Technology’s Sustainability Committee reports sustainability execution results biannually to the Board of Directors. In response to environmental topics and reduction of GHG, we do not operate a factory, but we still hope to play a role in the global climate change in the semiconductor industry chain. Since 2021, ASPEED Technology has completed the ISO 14064-1:2018 thirdparty GHG inspection certification at the organizational level every year, and the carbon management project was presented to the Board for approval in 2023. The Company has passed the science-based carbon reduction targets SBTi SME net zero target and path planning and will implement Scope 1 carbon reduction through the purchase of renewable energy. In 2024, ASPEED will take comprehensive inventories of Scope 1 to Scope 3 greenhouse gases in accordance with GHG Protocol to gradually implement the carbon reduction plan in accordance with this plan.

Declaration of Green Pledge and Minerals Conflict-Free

ASPEED Technology supported the Company’s green pledge, human rights protection, and conflict-free minerals policy by issuing a public statement on the corporate website proclaiming that the Company and the Company’s suppliers shall uphold their social and environmental protection responsibilities. They shall not accept minerals from conflict zones or illegal mines. The Company required that all suppliers commit to implementing these measures. In terms of green products, the electrical appliances, electronics and related technology products sold by ASPEED are in compliance with the relevant environmental protection laws and regulations, such as the RoHS Directive amendment instructions, (EU) 2015/863, Halogen free, IEC 61249-2-21, and ECHA SVHC REACH Directive 233 (EC 1907/2006). In 2024, dedicated personnel have been introduced to take charge of green products and the review and response to international relevant regulations. Based on the European Union’s REACH regulation, 11 new Substances of Very High Concern (SVHC) have been added, totaling 235 substances. At the same time, in order to better understand the international regulations on hazardous substances and to meet customer needs, so that the Company’s relevant personnel can be familiar with international regulations and quality assurance standards, relevant education and training courses on hazardous substances regulations have been set up to improve management efficiency. To manage the Company’s conflict-free minerals policy, ASPEED Technology supports the “responsible minerals procurement” position. ASPEED Technology shares the Company’s conflict-free minerals policy with suppliers and insists on full compliance. Each year the Company examines suppliers’ Conflict Minerals Reporting Template (CMRT and EMRT). Suppliers must identify their smelting source. In 2023, the examination version has been updated to CMRT 6.31 & EMRT 1.2. All of their purchases must be made from conflict-free and qualified mineral suppliers, and they shall faithfully disclose their conflict minerals information. Compliance is included in annual supplier evaluations, which enables us to implement our conflict-free procurement program. Suppliers shall also sign ASPEED Technology’s corporate social responsibility pledge and confirm that they will adhere to its conflict-free minerals policy. In the event that we discover that products or raw materials from suppliers contain conflict minerals from non-qualified sources, we take the necessary measures to stop use. ASPEED Technology issued a public declaration of support for responsible minerals procurement on the Company’s corporate website and seeks to fully implement this social responsibility.

2024 management of conflict-free minerals: