BenQ Materials' Carbon Fee System Zeroes in on Carbon Neutrality

As a leading global polarizer manufacturer, BenQ Materials is committed to achieving carbon neutrality by 2050. As part of this commitment, the company has implemented an internal carbon fee system ahead of the Taiwan government's introduction of a carbon fee in 2024. Carbon fees are another step toward Taiwan's 2050 net-zero emissions target policy, whereby proactive and sustainable carbon-reduction efforts are progressively introduced.

From a corporate perspective, taking action to reduce carbon emissions brings material goodwill. Global studies suggest that some 50% of consumers are more likely to select brands that have clearly defined environmental action plans, including verifying their carbon footprint and voluntarily shifting to a carbon-reducing production mode.

At BenQ Materials, we have implemented several initiatives over the years to achieve our 2050 goal, including:

Carbon footprint verification
As early as 2008, we have been conducting annual greenhouse gas verifications at each manufacturing site to track carbon emissions. The verification is conducted at the inception of a plant to strictly control odor and organic gases. In addition, in order to improve the efficiency of the verification process and long-term carbon management, a digital platform was introduced in 2022, which shortened the verification process and digitalized the company's carbon emissions data over the years — this helps in identifying specific areas for further refinement to carbon reduction measures. Verification is an integral part of our goal to reduce greenhouse gas emissions by 30% by 2030 (Note 1) and achieve carbon neutrality by 2050.

Internal carbon fee
From 2023, BenQ Materials is implementing an internal system that charges each business unit a fee based on its verified greenhouse gas emissions. The revenue from the carbon fee is used to fund the company's carbon reduction initiatives. We actively cultivate carbon-reduction awareness among employees and encourage them to take action. By understanding and allocating a tangible cost to the carbon emissions of various materials, plans for different carbon-reduction strategies can be derived.

Use of sustainable materials
Since the carbon fee is taken into consideration at the early stages of product development, there is an incentive to use non-toxic, recycled, and green building materials, as well as develop energy-saving and recyclable products. At a nano level, these materials all help to reduce our environmental impact.

Investment in renewable energy
Carbon fees collected are used to set up a carbon-reduction fund to purchase green power and invest in green-energy equipment. BenQ Materials will continue to reduce its reliance on fossil fuels and invest in renewable sources such as solar power at its factories. Furthermore, there are other spin-offs on the factory grounds that mitigate environmental damage. Today, there are more than 9,000 saplings with their leaves swaying in the wind as if to greet people and bee colonies flourishing from the surrounding flora.

These initiatives are helping BenQ Materials to make progress toward its goal of net-zero emissions. The carbon verification and carbon fee mechanisms play a critical role in our holistic approach to sustainable management. They help us to understand carbon emission hotspots, implement strict countermeasures, and allocate resources to planting trees that absorb carbon and conserve the natural ecology.

Note 1: Compared to carbon emissions in 2020 as the base year.