In 2015, Delta signed the international We Mean Business initiative. One of the advocacies under the initiative is the disclosure of climate-related information in mainstream reporting. Following the release of the TCFD standards, Delta quickly incorporated these frameworks into its annual report in 2017. In 2018, Delta became the first technology manufacturing company globally to be the TCFD supporter and complete its initial assessment of climate risks and opportunities. This work has not been done yet. The identified risks and opportunities will be thoroughly assessed every three years, and reviewed annually. Additionally, they need to be integrated with climate scenario analysis to help the Company better understand the potential financial impacts of climate change.

Integrating climate scenario analysis to identify opportunities and physical risks
Take two Delta’s products and solutions for examples. We explored the worsening trend of various air pollution indicators as global warming intensifies, then analyzing climate scenarios of "ideal emission reduction" and "high emission" to project air pollution (PM2.5) levels from the present through to the end of the century, and assessing the impact of climate change on air quality across different regions. This analysis provided a foundation for the commercial deployment of fans and air quality solutions. Additionally, Delta had evaluated business opportunities for energy storage solutions under various climate scenarios, taking into account factors such as estimated energy storage device capacity, specifications of its own energy storage systems, pricing, market conditions, and customer demand. The findings suggested that the energy storage market size is expected to double by 2030 compared to 2025, with Delta anticipating revenue growth opportunities approximately twice the comparative benchmark.

To strengthen the resilience of its operational sites and suppliers to physical climate disasters, Delta conducted a quantitative analysis in 2023 to assess the potential risks of flooding, drought, and heatwaves across all sites and key suppliers. The analysis identified that under "high emission" scenario, high-risk flooding sites are primarily concentrated in coastal regions of Japan, Mainland China, and Southeast Asia. High-risk drought areas are found in inland regions of North America, North Africa, the Arabian Peninsula, and arid parts of India. Extreme heatwave risks are prevalent in Mainland China, Europe, and North America. By understanding the physical risks facing its operational sites and key suppliers in the short, medium, and long term, Delta is able to continuously develop and implement appropriate adaptation measures to enhance the climate resilience of its business operations.




Since the implementation of the TCFD, Delta has gained significant experience and has noticed a growing concern among investors and clients regarding climate issues. As a result, Delta published its first TCFD & TNFD report in 2024, which not only comprehensively outlines the achievements made over the years in relation to the TCFD, but also applies the four core elements of the TCFD to the disclosure of nature-related financial information, as outlined by the Task Force on Nature-Related Financial Disclosure (TNFD). This effort aims to enhance stakeholder understanding of Delta's actions in addressing nature-related concerns.Delta’s assessment of business opportunities for energy storage solutions across different climate scenarios.

Advancing towards enhanced corporate sustainability disclosures aligned with IFRS S2
As Delta continues to enhance its information disclosure, the International Sustainability Standards Board (ISSB) has officially released the International Financial Reporting Standard (IFRS) S1 on General Requirement for Disclosure of Sustainability-related Financial Information and S2 on Climate-related Disclosures in 2024. Governments around the world are progressively incorporating S2 into their national regulations, signaling a shift for companies from voluntary disclosures of climate-related risks and opportunities under the TCFD to mandatory regulatory requirements. The good news is that the IFRS S2 disclosure framework aligns with the TCFD, while also offering additional stipulations and guidance. For instance, it explicitly requires disclosures to address industry-specific themes and emphasizes the need to report the impact of climate-related risks and opportunities on the company’s short-, medium-, and long-term financial condition, performance, and cash flow. It also provides guidance on integrating climate risks and opportunities into financial planning, using investor-friendly terminology to help shareholders better understand the Company’s climate actions.

The Financial Supervisory Commission of the R.O.C. (Taiwan) currently requires publicly listed companies with capital exceeding NT$10 billion to comply with IFRS S2 for climate-related disclosures starting in 2026. In response, Delta has leveraged its prior experience with TCFD disclosures to begin building a comprehensive framework aimed at continuously improving the transparency of how climate risks and opportunities impact financial performance. This approach is designed to mitigate operational risks while fostering the development of innovative technological products that capitalize on climate-related business opportunities, thereby enhancing Delta's competitive edge.In 2024, Delta published its first TCFD & TNFD Report, which provides a comprehensive overview of the findings of the TCFD and the Taskforce on Nature-related Financial Disclosures (TNFD).

*Task Force on Climate-related Financial Disclosures (TCFD)*
The framework of the Task Force on Climate-related Financial Disclosures (TCFD) covers four core elements: Governance, Strategy, Risk Management, and Metrics and Targets. These elements help investors and decision-makers understand the key risks faced by businesses and assess climate-related risks and opportunities more effectively.

*International Financial Reporting Standards No. S2: "Climate-related Disclosures" (IFRS S2)*
The International Financial Reporting Standards (IFRS) S2 on Climate-related Disclosures takes effect in 2024. Starting then, companies will be required to disclose reasonable and foreseeable climate-related risks and opportunities in their annual reports to shareholders. They must also outline the impacts of these risks and opportunities on the Company’s cash flow, cost of capital, and other financial factors over the short, medium, and long term.