Recent international risk assessments have highlighted "biodiversity" as a key long-term global risk. Despite biodiversity loss and ecological degradation not being as immediately urgent as other sustainability issues in the short term, they remain topics that businesses need to focus on in the long term.
Starting in 2023, MERRY began implementing group-wide biodiversity management and formulated a biodiversity and no-deforestation policy. This supports the Convention on Biological Diversity and the Kunming-Montreal Global Biodiversity Framework, demonstrating the group's commitment to protecting biodiversity and avoiding deforestation. This move responds to the Taskforce on Nature-related Financial Disclosures (TNFD) initiative. MERRY has adopted the TNFD-LEAP approach to establish a risk assessment mechanism that evaluates the impact of its operational activities on biodiversity. Starting from its HQ in Taiwan, the company began assessing the dependency and impact on nature, identifying corresponding risks and opportunities, and establishing countermeasures and performance indicators. These efforts form the basis for creating and implementing a priority adaptation action plan, enhancing management capabilities related to natural issues, and gradually implementing these practices in overseas facilities while engaging stakeholders in climate change issues.
Creating Positive Environmental Impact
MERRY considers achieving group-wide carbon neutrality by 2040 a key objective. Accordingly, strategic initiatives are implemented across all operational activities. Moreover, the group has advanced its RE100 target from 2040 to 2030. In response to the evolving sustainable development goals, the environmental protection policy and water resource policy will be revised and updated in 2024.
01
Advanced its RE100 target from 2040 to 2030
02
The Nearterm target was approved by the Science Based Targets initiative (SBTi)
03
Energy intensity decreased by 19.34%
04
Utilized 43.11% renewable energy, totaling 13,994 MWh
Key Goals：2040 carbon neutrality
As a global leader in electroacoustic manufacturing,
Merry actively addresses the environmental and resource issues brought about by climate change.
Merry actively addresses the environmental and resource issues brought about by climate change.
Biodiversity
Biodiversity Conservation
Appraisal
Identification
Assessment
Preparation
In 2024, to deepen the biodiversity risk and opportunity assessment methodology, an integrated assessment strategy was adopted. Firstly, the "Manufacture of consumer electronics" category within the Encore ( Exploring Natural Capital Opportunities, Risks and Exposure ) platform was referenced as an industry category benchmark to obtain industry-level natural capital dependency and impact patterns. This was combined with the 2023 natural ecosystem dependency and impact questionnaire survey conducted among headquarters' senior executives, to ensure the assessment process reflects Merry Electronics' actual operating model. When integrating these two data sources, the assessment outcome is directly adopted when the Encore tool's results align with internal evaluation findings; When discrepancies arise, adjustments are made based on managerial professional judgment to ensure the final assessment results accurately reflect MERRY Electronics'actual operational status. For instance, Encore indicates a higher dependency on process water within the electronics manufacturing sector, but considering Merry Electronics' primary assembly-centric production model, the degree of water resource dependency was appropriately adjusted. MERRY Electronics' primary manufacturing process is assembly. Although the process itself does not require water, its operations still rely on multiple ecosystem services. Given the trend of increasingly frequent extreme weather, the flood mitigation function of Natural Ecosystems is critically important for Facility safety. Furthermore, Ecosystem Services such as air quality and Biological Control hold indirect but significant value for safeguarding employee health. Merry Electronics recognizes the importance of natural capital and is committed to sustainable management to ensure these Ecosystem Services can continuously support the company's development.
Dependency Assessment
| Dependency Subject | Dependency Description | Dependency Level |
| Direct and Indirect Material Inputs | ||
| Water Resources Supply | Water resources required for operational processes and facility operations | Low |
| Prevent Business Disruption | ||
| Flood Mitigation Services | Natural buffering capacity to mitigate flood frequency and intensity | Medium |
| Storm Mitigation Services | Natural protection to mitigate the impact of extreme weather events | Low |
| Water Flow Regulation Services | Stabilizing water flow supply and preventing water resource shortages | Low |
| Environmental Impact Mitigation | ||
| Water Purification Services | Natural Systems' Water Purification Capacity | Low |
| Solid Waste Remediation | Ecosystem Function for Waste Decomposition and Treatment | Low |
| Atmospheric and Ecosystem Dilution Effects |
Environmental Natural Dilution of Emissions | Low |
| Noise Mitigation Services | Natural Environment's Noise Buffering and Absorption | Extremely Low |
| Long-term Operational Stability | ||
| Climate Regulation Services | Ecosystems' Temperature Regulation and Microclimate Stabilization Effect on Global Temperature and Climate | Medium |
| Biological Control Services | The ability of organisms within natural ecosystems to suppress pests and disease vectors | Medium |
| Rainfall Pattern Regulation Services | The influence of ecosystems on rainfall distribution and frequency | Low |
| Air Filtration Services | The capacity of natural systems to purify air pollutants | Low |
Impact Assessment
| Impact Area | Impact Description | Impact Level |
| Pollutant Emissions | ||
| Non-Greenhouse Gas Air Pollutant Emissions | The impact of volatile organic compounds and suspended particulate matter released during manufacturing processes on air quality | Low |
| Discharge of toxic substances into water bodies and soil | Contamination of surrounding water bodies and soil by hazardous substances potentially generated during operational processes | Low |
| Generation and release of Solid Waste | Environmental pressure from Solid Waste generated during production and office processes | Medium |
| Climate Change | ||
| Greenhouse Gas emissions | Contribution to climate change from Greenhouse Gases generated during energy use and transportation processes | Medium |
| Resource Use | ||
| Water Consumption | Pressure on water resources from domestic water consumption during operational processes | Low |
| Land Use Area | Impact of Facility Footprint on Land Resources and Natural Habitats | Extremely Low |
| Disturbances and Others | ||
| Disturbances ( such as noise, light ) | Disruption of surrounding ecosystems and communities caused by operational activities such as noise, light, etc. | Extremely Low |
Inventory of Facility Locations
All MERRY Electronics global Facilities are situated within industrial parks planned by local governments. Investigations of operational sites, conducted utilizing the World Database on Protected Areas (WDPA) provided by Protected Planet, confirm that none are located within globally or nationally designated Key Biodiversity Areas. Furthermore, each operational site adheres to relevant local environmental regulations. In the future, the Group will initiate short-, medium-, and long-term biodiversity plans to reduce environmental burden on local ecosystems and prevent significant impacts on biodiversity.
Risk and Opportunity Assessment
Risk
| Risk Category | Risk | Potential Financial Impact | |
| Physical Risk | Flood Mitigation Services | As climate change intensifies, the increasing frequency of extreme weather events may diminish the flood mitigation capacity provided by natural ecosystems, increasing the risk of flooding at the facility | Increased costs for post-disaster recovery and business interruption |
| Climate Regulation Services | Local microclimate changes and global climate change may lead to increased extreme temperatures, affecting Facility equipment operational efficiency and the employee working environment | Increased air conditioning equipment operational costs | |
| Biological Control Services | Changes in Ecosystem balance may lead to an increased risk of vector-borne diseases, affecting employee health and work efficiency | Increased employee health-related costs | |
| Transition Risk | Greenhouse Gas emissions | Tightening international and local regulations on Greenhouse Gas emissions, such as carbon taxes or carbon trading systems, may increase operational costs | Investment in low-carbon technologies and equipment increases costs |
| Solid Waste Generation | Increasingly stringent waste management regulations and heightened customer demands for circular economy impact waste management costs and compliance risks | Waste reduction and obtaining waste management certifications increase costs |
Opportunity
| Opportunity Category | Opportunity | Potential Financial Impact | |
| Resource Efficiency |
Water Consumption |
Reducing operational dependence and mitigating pressure on natural water resources through water conservation measures |
Reduced domestic water costs and lower preventive costs associated with water resource risks |
| Products and Services |
Research and Development (R&D) and Innovation for New Product and Service Development |
Applying environmentally sustainable materials to enhance product competitiveness, promoting low-carbon design, utilizing improved, lighter, and lower-carbon materials to elevate product environmental performance, and meeting client demand for sustainable products |
Increased revenue resulting |
Based on the outcomes of nature-related assessments, MERRY Electronics is actively advancing and preparing multiple action plans to consistently implement its "Biodiversity and No-Deforestation Policy." Furthermore, the company will develop training programs for management and relevant departments to enhance understanding of nature-related issues. We are committed to refining the application of the TNFD framework, continuously enhancing the completeness and transparency of nature-related financial disclosures, and addressing stakeholder expectations. MERRY Electronics actively seeks collaboration opportunities with suppliers, customers, and local communities to jointly advance concrete conservation initiatives. In 2024, the company donated "panoramic sound headphones" to the Central Taiwan Ocean Conservation Education Center of the National Museum of Natural Science. This donation assists researchers in more accurately recording surrounding biological sounds during ecological surveys along the central coast (Taichung, Miaoli), thereby enhancing the efficacy of biodiversity monitoring. This recording equipment addresses the sound recording challenges encountered by researchers during field investigations. Traditional recording equipment often struggles to differentiate various biological sounds within complex environments. The spatial recording technology of spatial audio headphones enables researchers to precisely distinguish bioacoustic emissions from different directions, capturing sounds that might have been previously overlooked, thereby establishing a more comprehensive eco-acoustic soundscape database. In early 2025 the company also collaborated with upstream and downstream value chain partners to implement a native plant restoration project in Taiwan. This initiative plans to plant 100 Alpinia zerumbet trees and provide continuous maintenance for a period of three years, demonstrating the corporate value chain's commitment to jointly safeguarding local ecosystems. We recognize that biodiversity conservation is a long-term endeavor. We will continuously refine assessment methodologies and progressively extend them across the value chain to realize our vision of sustainable development in coexistence with nature.
