Environmental Management Performance

 Green Operation Performance Compilation

 

 GHG Management

GHG emission is the most directly related factor to climate change. Realtek has independently conducted GHG emission inventory and management at the Hsinchu Headquarters since 2019; we implemented a comprehensive ISO 14064-1:2018 GHG inventory and passed the third-party verification in 2022. Realtek’s current inventory operation covers major operating locations (Realtek No. 1 Campus, Realtek No. 2 Campus, Taipei office and Tainan office), and the Company has begun planning for GHG emissions management of Realtek No. 3 Campus, Suzhou, Hefei, Shenzhen, Singapore and other subsidiaries. It is expected to complete the GHG emission inventory and verification for all sites of Realtek Group by 2024.

In 2022, Realtek’s total GHG emissions amounted to 26,462.8729 tCO2e, of which direct emissions (Scope 1) amounted to 808.4856 tCO2e, which included emissions from stationary sources (diesel used in emergency generators), mobile sources (petrol used in company cars) and fugitive sources (refrigerants, septic tanks, and fire extinguishers), respectively. Realtek produces no process emissions as we do not engage in production processes. Indirect emissions (Scope 2) of 25,654.3873 tCO2e primarily came from purchased electricity, accounting for 96.94% of total emissions.

With reference to the results of the GHG inventory, Realtek has formulated a carbon reduction strategy, set the direction of energy conservation at the energy saving improvement kick-off meeting in October 2022, promoting the establishment of an energy data monitoring system. Through regular internal meetings, the Company monitors the implementation progress of energy-saving measures of each responsible unit, and determines the path of carbon reduction with reference to the Science Based Targets Initiative (SBTi).

Realtek is fully introduced and certified with ISO 14064-1:2018 in 2022

 

 

 Energy Management

‧ Energy Efficiency

Realtek is a professional IC design house. The Company's energy consumption mainly from grid electricity, diesel for emergency generators, and petrol for company vehicles. Realtek has no heating equipment that uses coal, gas, or boilers, and its production does not involve high energy consumption processes such as smelting or polymerization. In 2022, Realtek’s total energy consumption was 181,599.16 GJ and energy intensity was 1.62 GJ. As the Company’s revenues increased significantly, its energy intensity continued to fall, demonstrating the effectiveness of its energy-saving management measures. In the future, Realtek will continue to implement energy-saving measures and regularly assess energy-saving goals as well as effectiveness.

Multi-Pronged Approach to Energy Savings and Better Energy Efficiency

Realtek is an IC design company that operates in a typical commercial office buildings. However, it continues to review the systems from six major directions, such as power systems, IT server rooms, lighting systems, air-conditioning systems, gas systems and testing equipment to improve energy conservation. Realtek conduct self-assessments and implements various projects to control carbon emissions and ensure the implementation effectiveness of various energy-saving measures.

In order to implement energy-saving and carbon reduction policies and improve the Company’s energy efficiency, we will complete the implementation of the ISO 50001 energy management system standard in 2023. Through energy reviews, establishing energy baselines, setting energy performance metrics, goals, targets, and action plans, we incorporate methodologies and the International Performance Measurement and Verification Protocol (IPMVP) for verifying energy performance, and build big data analytics energy management system software.

The senior management of Realtek can monitor, analyze, estimate and adjust energy management through the PDCA (Plan-Do-Check-Act) cycle, and can effectively predict energy consumption, strengthen energy management, verification of energy usage performance, ultimately achieving the goal of informatization and rationalization of energy management.

In 2022, the Facility Engineering Department and Information Technology Department as well as the Supply Management Center jointly studied, discussed and proposed a total of 29 energy-saving measures. These included replacing old air conditioning, lighting, compressors, and other equipment. In total, Realtek invested 20.33 million NT dollars and saved 2,812,230.37 kWh, or 10,119.08 GJ of energy, which was equivalent to reducing emissions by 1,431.43 tCO2e. The overall energy saving rate in 2022 was 5.3%.

 

‧ Sustainable, Green Energy Enterprise

Development of renewable energy is an important issue for global energy transition. With reference to the ‘Renewable Energy Development Act,’ which was promulgated by the Ministry of Economic Affairs, Realtek actively formulates the construction plan to install green energy power generation equipment to cover 10% of chartered capacity of. We will adopt an electricity self-generation and self-consumption mechanism and install solar panels on the rooftops of the factories in Hsinchu Headquarters. The electricity generated from the solar energy conversion will be used in the daily operations of office building. The construction plan is divided into four phases and is expected toreach an installed capacity of 1,149 kW by 2025, generating about 1.32 million kWh of green energy annually, which is equivalent to reduce carbon emissions by 673.74 tCO2(Note).

◎Phase 1 (176kW):Invested 10 million NT dollars, and completed in 2023;

◎Phase 2 (293kW):Invested 16.2 million NT dollars, and completed in 2023;

◎Phase 3 (530kW):Invested 32.57 million NT dollars, and completed in 2023;

◎Phase 4 (150kW):Planned and expected to be completed in 2025.

Note:Based on electricity generation of 3.2 hours per day and 360 days per year, using the 2021 CO2 emissions factor of 0.509 kg of CO2e per kWh, as announced by the Bureau of Energy, Ministry of Economic Affairs.

Starting from 2022, Realtek’s No. 2 Campus started the installation project of solar power generation systems with 446 solar panels, each panel generating approximately 395 watts of electricity per year, with an installed capacity of 176 kW. The project was completed in the first quarter of 2023 and will be in operation in the second quarter in 2023, aiming to increase the proportion of renewable energy usage by building green energy equipment to contribute towards reducing global warming.

 

‧ Realtek's Green Buildings

Realtek is actively striving to create green factories by incorporating, In the planning and construction of new buildings, we incorporated green concepts and adopted Taiwan’s EEWH green building design standards. Our No. 3 Campus has already been certified as a Taiwan EEWH Green Building “copper” candidate in April 2023, and has already obtained a LEED (US) green building “Gold” certification in June 2023. Realtek’s biomedical park campus has been nominated as a Taiwan EEWH Green Building “gold” candidate at the end of 2022 and plans to formally obtain a “gold” level as well as “LEED (US) gold” certification in 2024.

Strategies for Raising the Efficiency of Building Energy Consumption:

• Simulate and analyze building energy consumption and energy saving methods.
• Maintain comprehensive control over lighting and air conditioning systems.
• Adopt natural lighting and energy-saving lighting design.
• Use of energy saving and monitoring systems with air conditioning equipment.
• Use of renewable energy.
• Reuse of recycled cooling water and rainwater.

Realtek Green Building Sustainability Goals:

• Adopt the EEWH (Taiwan) and LEED (US) green building design standards.
• Find a balance between environmental protection and cost effectiveness to efficiently reduce GHG emissions from its building.
• Raise energy and water efficiency.
• Reduce wastes generated during building construction.
• Build a healthy and comfortable work environment.

Realtek’s biomedical park campus was named a Taiwan Green Building “gold” candidate

 

Realtek’s No.3 campus was named a LEED(US) “gold” candidate

 

 Water Management

Most water resources in the operation of Realtek are used by employees for general purposes. The water resources data are collected from the operational headquarters of Realtek (i.e. No. 1 Campus and No. 2 Campus). Realtek’s operational headquarters is in Hsinchu Science Park. The water comes from Hsinchu’s Baoshan Reservoir. To evaluate water risk levels, Realtek adopts the World Resources Institute’s ‘Aqueduct Water Risk Atlas,’ which shows the total water intake and water consumption percentage from areas with high or extremely high baseline water stress are both zero. Additionally, Realtek does not extract groundwater or use seawater, indicating a low potential impact on the local water resources. Moreover, all industrial wastewater and general wastewater produced within the Hsinchu Science Park are collected by the sewage system and piped to the Science Park’s wastewater treatment plant for processing before being discharged into the Keya River through a dedicated pipeline. The treated water exceeds the national discharge standards and discharged into the Keya River without causing any adverse effects on the ecological environment and water quality. In 2022, Realtek reported 96.03 ML of general wastewater discharge to the Hsinchu Science Park Administration. The Company did not have any discharge from process wastewater and did not pose any risk of environmental impact from wastewater or effluent spills.

In 2022, Realtek’s total water consumption was 138.89 ML. Most of this was tap water (91.51%) with the remaining (8.49%) reclaimed from rainwater and recycled water from air conditioners.

 

‧ Water Conservation Measures

Realtek pays close attention to water resources and environmental protection. We continuously optimize the recycling and reuse of water resources to improve overall water efficiency. Through reclaiming and reuse of rainwater, AC condensate, cooling water, and optimizing available resources, we lowered water consumption by 11.79 ML in 2022. The water savings rate reached 8.49%, achieving the goal of 5% annual reduction in factories.

 

 Waste Management

Realtek is a fabless IC design house that focuses on the design and sale of ICs with all manufacturing outsourced to professional foundries. The hazardous industrial wastes are defective outsourced IC products that are returned to the company for inspection. General industrial wastes are handled by external agencies, who contract with licensed operators to regularly collect and dispose of the wastes at government-approved incinerators. Realtek tracks waste generation and disposal records. Hazardous industrial wastes are sent to overseas recycling plants through legal disposal agencies with the recycling rate of more than 90% to fulfill waste management responsibilities and adhere to government regulations.

Realtek complies with waste management in accordance with the ‘Waste Disposal Act’ of the EPA, Executive Yuan and the management regulations of the Hsinchu Science Park. Monthly tracking of waste statistics and reporting are implemented, including disposal methods, types of industrial wastes, any presence of hazardous wastes, and total weight. In 2022, the Company produced 31.87 tonnes of industrial wastes, including 11.55 tonnes of hazardous industrial wastes and 20.32 tonnes of general industrial wastes.

‧ Reducing Waste Impact

Realtek reduces product wastes by developing products with smaller footprints, by striving to reduce the wastes after each product life cycle, as well as making an effort to enhance our own waste reduction and recycling management.

Waste Management and Reduction Methods:

  • In 2022, we formulated unit intensity targets for general industrial wastes generation, setting the goal of keeping the general industrial wastes shall not exceed 27 kg per NT$100 million of revenue (2022 actuals: 18.18 kg per NT$100 million of revenue). We also monitored the recycling rate of hazardous industrial wastes. Annual recycling rates of discarded IC products should be at least 90%.
  • In order to monitor the recycling rate of general wastes, we record monthly quantities of recycled general wastes and strengthen the classification as well as recycling plan; in addition, we have improved the screening of domestic waste to correctly sort the recyclable materials; we continue to incorporate energy-saving and environmental protection principles into our procurement practices and reduce the use of disposable items.
  • The goal for 2023: general industrial wastes shall not exceed 27 kg per NT$100 million of revenue.

Realtek promotes the environmental awareness among all employees by making environmental protection practices, such as recycling and waste reduction, a routine part of work and life. Initiatives include using recycled paper for product packaging and padding. New employees attend training on saving water resources. Everyone is encouraged to think about all the ways to protect the Earth and use resources wisely in everyday life, striving to create a green environment together.