Climate Change Management & Responses

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In 2020, Realtek referred to the framework of the Task Force on Climate-related Financial Disclosures (TCFD) for preliminary assessment of the company's corresponding situation based on four core elements: governance, strategy, risk management, and metrics & targets. In 2021, the Company held a TCFD workshop to identify climate-related risks and opportunities. During the meeting, senior managers and the CSR Committee conducted a climate change survey referring to recommendations by TCFD that the possibilities and degree of impact of climate changes were covered. Based on the survey results, senior management and CSR Committee members formulated the corresponding strategies and goals. To thoroughly assess the potential impacts of climate change on the Company’s operations and to improve the integrity of the TCFD reporting structure, Realtek formally implemented the TCFD program in 2022. We expect to build comprehensive identification procedures of climate-related risks and opportunities. By analyzing quantitative information of the financial impacts, we can fully understand the potential climate-related risks and opportunities that the company faces. The program facilitates effective monitoring, control and fast response to the impacts, thereby enabling Realtek to better grasp the opportunities of operational development as well as innovation. PotentialIn 2020, Realtek referred to the framework of the Task Force on Climate-related Financial Disclosures (TCFD) for preliminary assessment of the company's corresponding situation based on four core elements: governance, strategy, risk management, and metrics & targets. In 2021, the Company held a TCFD workshop to identify climate-related risks and opportunities. During the meeting, senior managers and the CSR Committee conducted a climate change survey referring to recommendations by TCFD that the possibilities and degree of impact of climate changes were covered. Based on the survey results, senior management and CSR Committee members formulated the corresponding strategies and goals.

To thoroughly assess the potential impacts of climate change on the Company’s operations and to improve the integrity of the TCFD reporting structure, Realtek formally
implemented the TCFD program in 2022. We expect to build comprehensive identification procedures of climate-related risks and opportunities. By analyzing quantitative information of the financial impacts, we can fully understand the potential climate-related risks and opportunities that the company faces. The program facilitates effective monitoring, control and fast response to the impacts, thereby enabling Realtek to better grasp the opportunities of operational development as well as innovation.Potential climate-related financial impact results will be disclosed in the next year’s ESG report.

 Climate Change Risk Management

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 Major Climate-Related Issues and Response Strategies

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