Delta met its science-based target (SBT) set in 2017 four years ahead of schedule in 2021. We continued to actively pursue a 1.5°C reduction pathway in 2022 in accordance with the Net-Zero Standard published by the Science Based Targets initiative (SBTi) at the end of 2021. We obtained the SBTi validation in the same year and became the first high-tech hardware equipment company in Asia and the 125th company globally to pass the review for net-zero science-based targets.

We proposed our SBT with 2021 as the baseline year for reducing absolute Scope 1 and Scope 2 emissions by 90%, reducing absolute Scope 3 emissions by 25% by 2030, and attaining net-zero emissions in global operation sites by 2050. We also continue to implement emission reduction measures for limiting global warming to 1.5°C to reduce carbon emissions in internal operations, empower the internal low-carbon transition, and develop innovative products and services.

Since 2007, Delta has participated in CDP to disclose the Group's greenhouse gas emissions. Delta overall production plants have passed ISO 14064-1 certification. We gradually expand the scope of certification to buildings, overseas operations, and subsidiaries. Our global operation sites have achieved the ISO 14064-1 certification.

Delta's greenhouse gas emissions reduction strategy is based primarily on energy management and adoption of renewable electricity. Direct emissions and energy indirect greenhouse gas emissions of global operation sites in 2022 was 187,645 metric tons CO₂e (by market-based), which was a 13.5% reduction compared to the previous year. It was mainly the result of continuous voluntary energy conservation and the increase in the use of green electricity in 2022 to 63%, including the installation of solar power generation equipment in plants, signing long-term green power purchase agreements, the purchase of green electricity products, and the purchase of unbundled energy attribute certificates (unbundled EACs).

Delta's value chain consist mainly of Scope 3 emissions (accounting for more than 94% by location based) while Scope 1 and 2 emissions account for 0.5% and 5.3%, respectively. In the future, we will continue our carbon reduction measures in Scope 1 and 2 and expand our efforts to upstream and downstream sections of the value chain to actively discuss, communicate, and encourage value chain partners to join us on our path to 1.5°C reduction.

Delta announced in 2021 that it has joined the global renewable electricity initiative RE100 as a Gold Member, and pledged to achieve the goal of 100% renewable electricity and carbon neutrality by 2030 for all of Delta's global operation sites. Delta officially established the Delta Global RE100 Committee in 2021 with the Chairman, Vice Chairman, CEO, COO, and CSO as the main members who oversee eight work groups in more than 30 countries. Each work group is led by the president of regional operations, who establishes a regional promotion organization to expand management to all locations. It is responsible for the promotion and attainment of renewable electricity targets for all locations in each region.

In 2022, the attainment rate of the use of renewable electricity was included as performance indicators of the Chairman, CEO, and highest-ranking officers of the work groups for the first time, and it accounted for 5% to 15% of their total remuneration and incentives. Renewable electricity must comply with RE100 technical documents. To avoid double counting and manage data quality, Delta strengthened awareness in meetings, training programs, and internal audits in 2022. We then used the ISO 14064-1 verification process to ensure the integrity of electricity consumption data.

Delta strategically promotes renewable power by setting procurement priorities and linking different types of procurement projects to their internal carbon fees. In terms of the methods for attaining the targets, Delta uses energy conservation as the basis for reducing electricity consumption and adopted a strategy of self-generated and consumed renewable electricity as the highest priority. The second category is direct purchase of renewable power (e.g., Power Purchase Agreements (PPAs) and green electricity products) with bundled renewable electricity and certificates. The third category is unbundled energy attribute certificates (unbundled EACs). In full compliance with the RE100 technical manual, Delta developed other categories of innovation to encourage innovative measures for increasing the percentage of renewable electricity use. The mechanisms are also partially linked to the internal carbon pricing system to encourage all sites to prioritize the use of self-generated and consumed renewable electricity and bundled renewable electricity.

Delta promotes the target of attaining 100% renewable electricity at global operation sites by 2030. In 2022, the use of renewable electricity at global business locations reached 63%. Total electricity consumption was 709,484 thousand kWh (MWh), including 447,002 thousand kWh of renewable electricity. The sources of renewable electricity included 25,454 thousand kWh (4%) from self-generated and consumed solar power, 51,808 thousand kWh (7%) from the direct purchase of PPA renewable electricity, 88,313 thousand kWh (12%) from green electricity products, and 281,427 thousand kWh (40%) from unbundled EACs.