Company’s net-zero goal also passes SBTI’s review as first in Asia’s technology hardware and equipment industry
Delta, a global leading provider of power and thermal management solutions, today announced its selection as one of 57 companies (out of a pool of 18,700) from around the world to win a double A List rating on the two environmental issues of “Climate Change” and “Water Security Management” in the 2022 CDP evaluation. By earning the CDP’s A List for three consecutive years on the “water security” issue, Delta further cements its ESG leadership status regarding climate change and water security action. Furthermore, in response to the 1.5°C pathway for keeping global warming under control, Delta has formulated a long- term strategy and target of achieving net zero emissions at all global operating sites by 2050*, which has been approved by the SBTi’s review. This makes Delta the first company in the technology hardware and equipment industry in Asia and the 125th company in the world to have passed the SBTi’s net-zero target review**. Delta has also set a short-term target of reducing its greenhouse gas emissions by 90% by 2030 compared to 2021, which is stricter than the 1.5°C pathway required by SBTi (i.e., 42% by 2030).
Jesse Chou, Delta’s Chief Sustainability Officer, said, “We feel very proud that the CDP, one of the leading ESG performance assessments in the world, has recognized Delta’s sustainability endeavors, which include carbon reduction through energy conservation, proactively participating in international sustainability initiatives, implementing energy-saving projects in our daily operations, self-generating solar energy, and purchasing renewable electricity or renewable energy certificates. Our proactive climate action helped reduce Delta’s carbon intensity by 71% by 2021 (versus 2014), thus, achieving its original SBT target (56.6% by 2025) four years ahead of schedule. Moreover, we have joined the Business Ambition for 1.5°C with a commitment to carrying out decarbonization and low-carbon transition programs in alignment with the 1.5°C pathway inside the company, developing innovative products and services, and working with value chain partners to achieve the goal of net zero emissions by 2050.”
Delta is actively taking climate change governance measures. These include requiring the RE100 (use of 100% renewable electricity) achievement rate in top-level managers’ performance indicators since 2021 and adopting an internal carbon pricing mechanism at US$300 per metric ton of carbon emissions. Funds generated through the internal carbon price initiative are used for actions that help achieve Delta’s RE100 and net zero goals, such as energy conservation and carbon emissions reduction projects, investments in renewable electricity, and research and development on carbon negative technologies and low-carbon product innovation. Delta also formally incorporated biodiversity into the company’s sustainability strategies to respond to the United Nations’ Sustainable Development Goals with practical actions and its corporate core capabilities. Moreover, Delta continues to adopt the Task Force on Climate-related Financial Disclosures (TCFD) framework to assess and analyze Delta’s risks and opportunities arising from climate change, and to identify the business direction and actively seize opportunities from green businesses such as electric vehicles and energy storage.
In terms of water security management, although Delta is not a major water user, it actively sets strategic goals and has developed and implemented a methodology in daily operations and its business development process. By analyzing and discussing the risks and opportunities arising from flooding and water shortages brought about by climate change, Delta has established a water risk assessment process covering its supply chains and plants. In 2021, it conducted a water risk assessment of nearly 700 key suppliers and incorporated the assessment results into the decision-making process. Delta also set a target of reducing the overall water intensity by 10% in 2025. It has reached the target for the 2021 stage and incorporated it into the senior management team’s performance evaluation indicators. Delta also adopts its self-developed industrial automation products, such as inverters or programmable controllers, to conduct water quality management to save water consumption, avoid unusual water pressure, and reduce losses, while further providing the benefits of high efficiency and energy conservation, smart water supply, and water leakage protection.
CDP’s annual environmental disclosure and scoring process is widely recognized as the gold standard of corporate environmental transparency. In 2022, over 680 investors with over US$130 trillion in assets and 280 major purchasers with US$6.4 trillion in procurement spending requested companies to disclose data on environmental impacts, risks and opportunities through CDP’s platform. A record-breaking 18,700 companies responded.
*Delta has set a net-zero long-term goal of reducing Scopes 1, 2, and 3 greenhouse gas emissions by 90% by 2050 compared with the base year of 2021. Meanwhile, it set a new short-term target of reducing Scopes 1 and 2 greenhouse gas emissions by 90% by 2030 compared with the base year of 2021 and Scope 3 greenhouse gas emissions by 25% by 2021. This target is stricter than the requirements of the SBTi’s 1.5°C pathway (i.e., a reduction of Scopes 1 and 2 greenhouse gas emissions by 42% by 2030).
– Scope 1: Direct emissions from the sources owned or controlled by an organization (such as diesel, gasoline, or natural gas)
– Scope 2: Indirect emissions from an organization’s purchased electricity
– Scope 3: Carbon emissions from the upstream and downstream organizational activities of a company’s value chain
**As of December 15, 2022, a total of 1,681 enterprises around the world have been committed to SBTi’s net zero goal.
For further information about Delta, please visit: www.deltaww.com
