Greenhouse Gas Monitoring

M31 adheres to the “developing green products” policies and “implementing energy conservation and waste reduction” in the environmental safety and health policy. It is committed to promoting energy conservation and carbon reduction and publicly disclosing carbon management information to fulfill corporate social responsibility for environmental protection and reduce the environmental and climate impact caused by global warming due to our greenhouse gas emissions.

Energy Policy

Based on the corporate responsibility to society and the goal of sustainable management, M31 upholds the concept of energy conservation and carbon reduction and promotes energy management policies that meet international standards.

We are committed to the energy policy as follows:

  • Support the concept of energy-efficient design and prioritize the procurement of energy-saving equipment.
  • Enhance energy use efficiency and continuously improve energy efficiency.
  •  Develop a green corporate culture and pursue sustainable business operations.
  •  All employees participate in energy conservation and carbon reduction, and comply with relevant laws and regulations.

Energy Management

M31 is a boutique IP design company, engaged in product design, R&D and sales. The production and manufacturing of products are entrusted to professional foundries. Therefore, the company’s energy needs are mostly for IT equipment, air conditioning and lighting in the server room, and the main source of energy is electricity, which is purchased from Taiwan Power Company.

Governance

Organizational Responsibility

The “ESG Implementation Team” is the main unit responsible for the company’s sustainable development and promotion. After collecting and evaluating various issues and risks related to the company’s operations, the ESG Implementation Team prepares corresponding climate change strategies and reports to the Board of Directors on a regular basis. The Board of Directors reviews the countermeasures and recommends feasible directions.

 

Strategy

Energy conservation policy advocacy

Set up an annual action point to implement the strategy and use the platform or slogan to promote policies.

Resource Reuse

Continuously promote recycling of waste paper and evaluate recycling measures for household waste.

Performance Maintenance

Purchase products that meet the energy-saving label and maintain them regularly to stabilize the performance operation.

Risk Management

Risk Assessment

Through the ESG Implementation Team and the Risk Management Committee, risk management is identified and evaluated, and corresponding measures are developed.

Assessment Tracking

Each year, the relevant departments are invited to regularly review the assessment of policies, regulations, technologies, markets and goodwill in terms of transformation risks and opportunities, and to continuously revise the assessment results.

Indicators & Targets

Water and Electricity Saving

Internal water and electricity saving targets are set, and the achievement rate and deviation values are tracked regularly.

Eco-friendly Office

Encourage colleagues to work together with the company to achieve our goals by promoting and acting on eco-friendly office initiatives every year through our internal platforms.

Carbon Reduction Plan

Formulate a greenhouse gas monitoring plan and gradually set up target values, which are expected to reduce carbon emissions by 1% to 2% per year.

Climate Change Risk and Opportunity Identification

In the face of increasing climate change, extreme weather conditions may have a serious potential impact on business operations and finances. M31 performs climate change risk and opportunity identification in accordance with TCFD and considers internal and external environmental changes to identify potential impacts and possible risks and opportunities on the company’s operations and finances, and formulates corresponding management policies:

Climate Change Risks

Risk Assessment Direction Item Risk Impact Description Potential Operating and Financial Impact Company management policy
Transformation Risks Policies and Regulations Total Control & Carbon Rights The international promotion of the carbon tax, the carbon environmental adjustment mechanisms, and the government’s introduction of a carbon fee affect operating costs. Higher indirect energy and electricity rates and higher carbon costs will lead to higher operating costs.
  • Improve the efficiency of energy use within the enterprise, implement energy management operations, and reduce electricity consumption and carbon emissions.
Energy Supply Unstable Energy Supply The risk of power instability or shortage due to green energy policies, and the potential for government power restrictions, directly or indirectly, to cause operational disruptions. Depending on the circumstances, additional energy storage or generator equipment may be required to maintain uninterrupted operations, and increased procurement costs may result in higher operating costs.
  • Continuously maintain UPS and emergency power generation units to reduce the impact of power limitation.
  • Incorporating energy-efficient design is a priority for system procurement.
Market Innovative Technology Development Customers’ demand for low carbon products and services is increasing. They are switching to low energy consumption or high performance IP technology services. Companies need to consider the design cost required for energy efficiency improvement. Customers no longer continue to purchase M31 IP, resulting in a decline in revenue.
  • Develop products to meet high efficiency and power saving requirements, meet product requirements and meet market trends.
Entity Risk Extreme Climate Extreme Climate Increased Number of Events Due to the increase in the number of extreme weather days worldwide, typhoons, rainstorms, and high temperatures are constantly impacting, and extreme conditions may directly or indirectly cause operational disruptions. Power outages or rainstorms that prevent employees from working as scheduled, resulting in operational interruptions or financial losses.
  • For the core server room, establish UPS and air-conditioning system redundancy mechanisms.
  • Decentralize operating plants and set up remote working or backup mechanisms to reduce possible impact.

Climate Change Opportunities

Opportunities Opportunity Projects Identify opportunities Potential Operating and Financial Impacts Company Management Policies
Resource Efficiency Resource Utilization Efficiency With global climate change, customers are responding to the increase of government regulations on corporate carbon emission and power saving requirements. M31 will be able to meet the green energy and power saving requirements as early as possible to strengthen its competitiveness. In order to achieve net zero carbon emissions, investing in energy storage devices is necessary, which increases the procurement cost.
  • Continuously implement virtualization of application servers and virtual workstations to reduce the number of physical machines used.
  • Continuously optimize the server room environment to further reduce the power usage efficiency in the server room.
Water Efficiency Climate change has led to longer periods of water shortage and unstable water supply, which causes the equipment in the server room to fail to cool down and operate. M31 will prepare a contingency water plan to strengthen its operation capacity as soon as possible. Effective water resource management enhances water resource utilization and reduces water costs.
  • Install water-saving devices to adjust the water output to reduce waste of water resources.
Products and Services New Innovation Technology Subject to Taiwan’s greenhouse gas reduction-related laws and regulations, M31 must improve product energy efficiency to comply with greenhouse gas emissions. Working with customers to find all possible solutions and collaborating to develop effective energy-saving technologies can strengthen the customer relationship.
  • Enhanced low power consumption design, providing more efficient and power-saving IP technology.
  • R&D of high-performance IP technology to achieve low carbon and material reduction to lead to a low carbon supply chain.
Resilience Strengthen Supply Chain Management Continuously drive the supply chain towards low carbon and set annual greenhouse gas emission reduction targets. Maintaining a close partnership with the supply chain, considering high-quality and high-value product output and production sustainability management, can strengthen the supply chain’s resilience.
  • Incorporate ESG as suppliers’ evaluation, and conduct regular audits, tracking and improvements.

Environmental Management Performance

M31 (excluding subsidiaries and the Taipei office) historical greenhouse gas, energy conservation and waste reduction monitoring data are as follows:

Year CO2 Emissions (kg) Water Consumption (kiloliter) Weight of Household Waste (kg)
Total emissions Average per person Reduction rate Total consumption Average per person Reduction rate Total weight Average per person Reduction rate
2019 821,267 5,332.90 – – 2,235 14.51 – – 2,279 14.8 – –
2020 921,249 5,325.10 0.15% 2,426 14.04 3.35% 2,508 14.5 2.07%
2021 1,049,970 5,223.70 1.92% 2,632 13.12 6.55% 2,773 13.8 4.83%
2022 1,088,764 4,926.50 5.69% 3,634 16.44 -25.30% 3,005 13.6 1.45%
Target Reduction up to 5,000 kg/person Reduction up to 13 kiloliter/person 5% yearly reduction