Climate-Related Financial Disclosures
Climate Governance Frameworks
Following the introduction of the TCFD framework in 2021, WNC added its signature to the TCFD official website in 2022. WNC has gradually adjusted its organizational structure for sustainability governance and clearly defined the responsibilities of senior managers. The BOD is the highest supervisory unit for sustainability, and the Sustainable Development Committee reports the progress of sustainability related initiatives to the BOD on a regular basis. In addition, the Committee compiles overall strategies for sustainability and supervises senior managers’ governance status and their performance of key indicators.
The Environmental Protection, Social Responsibility, and Corporate Governance working groups under the Committee review the status of each ESG project every quarter, develop goals in accordance with WNC’s sustainable development directions and strategies, and establish related management guidelines and specific action plans. Furthermore, to enhance WNC’s management capabilities regarding climate and nature-related risks and ensure the implementation of management actions, the Sustainability Development Center coordinates with relevant business units to establish a climate and nature-related risk management team. This team identifies and assesses risks and opportunities the company may face, evaluates potential financial impacts and formulates management policies and carbon management initiatives.
For details about WNC’s TCFD, please refer to WNC’s 2024 TCFD & TNFD Report.
Climate Risks Identification, Assessment and Management
WNC’s Climate Risk Assessment Team conducts a comprehensive review every three years and annually monitors the status of risk management. The team also considers emerging domestic and international industry issues and global trends to ensure the relevance and comprehensiveness of the risk assessment. With external experts, the Sustainability Development Center considered eight categories of risks and the upstream, midstream, and downstream areas of the value chain to establish a climate-related issue list. An internal risk identification questionnaire was designed, and business units, facility affairs, industrial safety, general affairs, finance, DMIS, legal, QA, mechanical and industrial design, industry research, supply chain management, and sustainability units were invited to participate. These units, based on their expertise and experience, conducted workshop discussions on risk probability and the severity of impact, and formulated corresponding management policies and action plans for major risks.
Climate Goals
In response to the Paris Agreement and the goal of limiting global warming to 1.5°C, WNC is enhancing its climate action efforts. Since 2023, WNC has adopted the SBTi methodology to set science-based carbon reduction targets and joined the RE100 initiative, committing to 100% renewable energy use by 2040. These targets were officially approved by SBTi in February 2025. Using 2022 as the base year, WNC aims to reduce Scope 1 and Scope 2 emissions by 42% by 2030, and Scope 3 emissions by 25% from a 2023 baseline, progressing toward net-zero emissions across all scopes by 2050. In alignment with international climate initiatives, WNC continues to advance its climate strategies. Starting in 2026, the company will integrate related strategies and plans to bring forward its Scope 1 and Scope 2 net-zero target to 2040, and plans to submit more ambitious targets to SBTi by 2028.
To achieve net-zero targets and meet carbon reduction requirements, WNC has implemented the ISO 50001 Energy Management System. The company promotes energy-saving initiatives across five key systems: production processes, lighting, exhaust, air conditioning, and compressed air to enhance energy use efficiency and reduce Scope 1 and 2 emissions. In 2024, WNC executed 82 energy-saving projects, estimated to save 27,076 GJ of electricity—equivalent to a reduction of 4,088.26 metric tons of CO2e. WNC also monitors developments in carbon credits and negative emission technologies both domestically and internationally. To support its net-zero goals, the company pursues carbon credits through afforestation and other carbon reduction projects that provide additional environmental benefits.
In terms of internal carbon pricing, WNC references TCFD transition risk analysis, considering factors such as domestic and international carbon taxes, renewable energy procurement, and investments in energy-efficient equipment. These insights guide the company’s internal carbon pricing strategy. To strengthen internal understanding, WNC hosted benchmark companies at its 2024 ESG Good Ideas competition to share experiences in carbon pricing.
WNC launched an Internal Carbon Pricing (ICP) mechanism in 2025, with a starting price of USD30 per tonne CO2e in the first year. The mechanism is intended to drive the pursuit of the company’s net‑zero objectives with applications including greenhouse gas management across all scopes (Scope 1, 2, and 3), optimization of equipment procurement decisions, energy‑efficient design of green products, and investment appraisal for carbon offsets and carbon‑capture technologies. It will also help the company prepare for regulatory requirements at each site. Additionally, external experts were engaged in 2025 to provide executive training, and facility pilot projects were launched, with a view to gradually extend the program to all sites.
