Environment
Net-Zero Transition Plan
With reference to the five elements of the UK Transition Plan Taskforce (TPT) Disclosure Framework — Foundations, Implementation Strategy, Engagement Strategy, Metrics & Targets, and Governance — this plan sets out WNC's pathway toward net-zero emissions by 2050, including its key actions and decarbonization levers, resource allocation, stakeholder engagement, and accountability mechanisms.。
1. Foundations
1.1 Alignment with the Paris Agreement Goal of Limiting Global Warming to 1.5°C
WNC's net-zero transition plan is aligned with the Paris Agreement goal of limiting global warming to 1.5°C above pre-industrial levels. WNC has established a three-stage net-zero transition pathway in line with the 1.5°C pathway, and applies the 1.5°C pathway of the SBT Net-Zero (SBT-NZ) scenario in its transition risk and carbon price scenario analysis. WNC's near-term and long-term emissions reduction targets were validated by the Science Based Targets initiative (SBTi) in 2025 as aligned with the 1.5°C pathway. The internal carbon pricing (ICP) mechanism introduced in 2025 is also explicitly designed to support the achievement of WNC's climate targets and contribute to limiting global warming to 1.5°C.
1.2 CImplications of Climate Change for the Business Model and Strategy
In its 2025 TCFD & TNFD Report, WNC quantitatively assessed the impacts of climate-related risks and opportunities on its business, strategy, and financial planning, including the potential effects of energy price changes, customers' low-carbon requirements, and extreme weather events on revenue and costs, and developed corresponding response strategies and actions.
2. Implementation Strategy
2.1 Key Actions and Decarbonization Levers (Scopes 1, 2, and 3)
WNC focuses on near-term actions over the next five years to drive emissions reductions across Scopes 1, 2, and 3. Key actions and decarbonization levers are summarized below:
Scope 1 | Scope 2 | Scope 3 | |
|---|---|---|---|
| Key actions and decarbonization levers | • All major manufacturing sites in Taiwan, China, and Vietnam are ISO 50001 certified, driving continuous energy efficiency improvements • Introduced internal carbon pricing in 2025 (shadow price of USD 30/tCO₂e) to guide equipment procurement and low-carbon investment decisions • In the third stage of the net-zero pathway (2027–2030+), integrate smart energy management and ESG information platforms across all sites | • Joined RE100, committing to 100% renewable electricity by 2040, with interim targets of 30% in 2026, 35% in 2027, and 60% in 2030 • Implemented 63 energy-saving projects in 2025, saving 8,341.87 MWh of electricity and reducing 5,154.38 tCO₂e • Expanded on-site solar power systems to an installed capacity of 11.5 MW in 2025 • Procure international renewable energy certificates (I-RECs) and assess Power Purchase Agreements (PPAs) in the mid term | • Established the Design for Green (DFG) mechanism and Green BOM material carbon emissions database to enable low-carbon material selection at the design stage • Set targets for the share of recycled plastics used in routers: 40% by 2026, 50% by 2028, and 60% by 2030 • Require suppliers to set carbon reduction targets (joining the SBTi, committing to RE100, or reducing emissions by at least 25% from their base year by 2030) • Adopt ISO 59004 circular economy guidelines and ISO 20400 sustainable procurement guidance in 2026 |
2.2 Resource Allocation and Investment Planning
WNC formally launched its internal carbon pricing mechanism in 2025, piloting a shadow carbon price of USD 30/tCO₂e in the first year. Internal carbon pricing has been integrated into the decision-making and risk assessment processes for major investments, guiding business units to consider climate-related issues and serving as a basis for identifying low-carbon transition opportunities and technology deployment. The 2025 TCFD & TNFD Report also discloses the current-period management costs (including CapEx and OpEx) of responding to material climate-related risks and opportunities, including the deployment of energy management platforms, regional equipment replacement, and energy-saving system optimization in response to energy price changes, as well as solar panel installation in response to voluntary agreements. WNC will further assess and set quantified targets for future investments or funding.
2.3 Assessment of Social Implications of the Transition Plan
WNC recognizes that the transition to a low-carbon economy may affect its employees, workers in its supply chain, and communities where it operates. WNC will continue to assess how transition actions, such as the adoption of low-carbon technologies and production line adjustments, affect workforce skill requirements, and will strengthen employees' capabilities for the sustainability transition through its existing training programs. WNC plans to include climate transition topics in the stakeholder survey of its triennial materiality assessment to evaluate the potential risks and impacts of operational changes on employees and supply chain workers. WNC will also assess the use of its existing grievance mechanisms and will initiate internal remediation if any adverse impacts on rights resulting from operational changes, including climate transition measures, are confirmed, thereby contributing to a just transition.
3. Engagement Strategy
3.1 Engagement with the Value Chain
WNC requires all suppliers to sign the Supplier Commitment to Sustainability Declaration and the Supplier Integrity Commitment Letter, confirming their compliance with the WNC Supplier Code of Conduct. In 2025, 499 key and tier-1 suppliers participated in the EcoVadis sustainability risk assessment, of which 472 completed the evaluation. The results are converted into WNC's internal ESG score (on a scale of 0 to 5) and incorporated into its Vendor Performance Evaluation (VPE). To drive supply chain decarbonization, WNC requires suppliers to set carbon reduction targets; in 2025, 83% of suppliers met this requirement, and 66 key high-emission suppliers completed GHG inventories with third-party verification. WNC holds an annual Sustainable Supplier Conference; in 2025, four conferences were held in Taiwan and Vietnam with 84 high-emission suppliers, providing carbon management training and communicating WNC's decarbonization requirements.
3.2 Engagement with Industry Peers or Relevant Associations or Initiatives
WNC joined the RE100 global renewable energy initiative in 2023, becoming the first major Taiwanese networking and communications company to do so, and had its science-based emissions reduction targets validated by the SBTi in 2025. Through its participation in international initiatives, WNC works with industry peers to establish low-carbon transition standards and achieve net-zero goals.
3.3 Engagement with Government, Public Sector or Civil Society
In 2025, WNC joined the Asia Clean Energy Coalition (ACEC), supporting clean energy policy advocacy and market reform in Vietnam to accelerate the local energy transition and decarbonization. WNC participates in the Nature and Biodiversity Initiative Platform of the Taiwan Business Council for Sustainable Development (BCSD Taiwan) to engage with international organizations and institutions. In February 2025, at the invitation of BCSD Taiwan, WNC joined an in-depth dialogue with the Forestry and Nature Conservation Agency (Ministry of Agriculture), the Ocean Conservation Administration, the National Park Service, and other companies on how businesses and government can collaborate to address nature- and climate-related risks. In May 2025, WNC participated in a public-private partnership forum on natural capital co-organized by the Taiwan Climate Action Association and the Forestry and Nature Conservation Agency. In July 2025, at the invitation of the NTU Experimental Forest, WNC attended an international symposium on biodiversity credits, exchanging views on nature-based solutions, net-zero strategies, and biodiversity governance with experts from eight Asian countries and representatives from industry, government, and academia. WNC will continue to promote public-private collaboration through domestic and international platforms, forums, and conferences.
4. Metrics & Targets
Near-term targets: By 2030, reduce Scope 1 and Scope 2 GHG emissions by 42% from the 2022 base year, and reduce Scope 3 GHG emissions by 25% from the 2023 base year. Long-term targets: By 2050, reduce Scope 1, 2, and 3 GHG emissions by 90% from their respective base years and achieve net-zero emissions across all scopes, neutralizing residual emissions through permanent, long-duration carbon removal. All targets cover 100% of base-year emissions and have been validated by the SBTi. WNC also plans to bring forward its Scope 1 and Scope 2 net-zero target to 2040 and submit a target revision to the SBTi. Progress in 2025: Scope 1 and Scope 2 (market-based) emissions were 51,599.25 tCO₂e, a cumulative reduction of 19.01% from the 2022 base year, exceeding the annual target of 15.75%. Emissions from key Scope 3 categories decreased by 7.69% from the 2023 base year. The renewable electricity ratio reached 34.47%, exceeding the annual target of 25%.
5. Governance
The Board of Directors is the highest governance body for sustainability, overseeing climate-related policies, strategies, and targets. The Board communicates with management at least quarterly and reviews the assessment results of climate-related risks and opportunities. The Sustainable Development Committee, elevated to a Board-level committee in 2024, assesses material climate-related risks and opportunities quarterly. Senior executives' sustainability performance indicators, including achievement of SBTi GHG reduction targets and the renewable energy ratio, are linked to short-term performance bonuses and long-term incentives (such as equity), accounting for up to 10% of bonus allocation, to strengthen management accountability for implementing the transition plan.
