Creating Positive Environmental Impact
Merry actively addresses the environmental and resource issues brought about by climate change.
- Audit sites via WDPA to verify proximity to protected areas. Confirm all facilities are inside industrial parks and outside Key Biodiversity Areas (KBAs).
2.Evaluate
- Use ENCORE to assess site dependencies and impacts on ecosystem services, and survey senior HQ executives on nature-related dependencies and impacts.
3. Assessment
- Assess the potential risks and opportunities to the companyʼs operations arising from identified biodiversity dependencies and environmental impacts.
4. Prepare
- Review existing nature-issue management approaches and integrate findings into the company's nature-related risk assessment to ensure effective management.
Inventory of Facility Locations
All of MERRY is global operational sites (including manufacturing facilities and office locations) are situated within industrial parks or industrial zones designated by local governments. Through an overlay analysis using the World Database on Protected Areas (WDPA) provided by Protected Planet and Taiwanʼs biodiversity maps, we found that none of these sites are located within globally or nationally designated
protected areas. However, the Taiwan HQ is located within a 2-kilometer radius of the “Taiwan Ecological Network Conservation Corridorsˮ (a non-statutory protected area). Nevertheless, this site is purely for administrative and office use, with no emissions from production processes, and its operations strictly comply with regulations, resulting in no significant negative impact on the surrounding ecology. In addition, all other operational sites comply with relevant local environmental regulations and consistently implement biodiversity and zero-deforestation policies, striving to reduce the burden on the local environment and ecology and avoid significant impacts on biodiversity.
To deepen its assessment of biodiversity risks and opportunities, MERRY adopted an integrated assessment strategy. First, using the "Manufacture of consumer electronics" sector as the benchmark in the Encore (Exploring Natural Capital Opportunities, Risks and Exposure) platform, using “Manufacture of consumer electronicsˮ as the industry category benchmark to obtain industry-level natural capital dependency and impact patterns. This was combined with a questionnaire survey of senior Headquarters executives regarding natural ecological dependencies and impacts to ensure the assessment process reflected MERRYʼs actual operational model. When integrating these two data sources, if the results from the Encore tool align with the internal assessment, those results were directly adopted; when discrepancies arose, adjustments were made based on the professional judgment of management to ensure the final assessment results accurately reflect MERRY‘s actual operational conditions.
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 Subject |
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 |
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 results of its nature-related assessments, MERRY has initiated and prepared multiple action plans, implemented its “Biodiversity and Zero Deforestation Policy,ˮ and refined the application of the TNFD framework. The company continues to enhance the completeness and transparency of its nature-related financial disclosures to meet stakeholder expectations. MERRY also actively seeks collaboration opportunities with suppliers, customers, animal welfare groups, and local communities to jointly advance concrete conservation initiatives. Given that MERRYʼs Taiwan HQ is located near the “Dadu Mountain Plateau and Low Mountain Conservation Corridorˮ and the “Wuxi River Basin Conservation Corridorˮ—areas that encompass the precious ecological networks of Taichungʼs low mountains and streams and serve as critical habitats for the endangered Taiwanese leopard cat—MERRY has designated this region as a conservation priority. By the end of 2025, MERRY will donate funds to the “Taiwan Leopard Cat Conservation Association,ˮ hoping to implement community environmental education and habitat conservation through partnerships with professional wildlife conservation organizations. Furthermore, we recognize that safeguarding biodiversity requires collective effort. In early 2025, MERRY also collaborated with partners across the upstream and downstream value chain to implement a native plant restoration project in Taiwan, planting 100 Taiwanese Indigenous Litsea Cubeba trees and undertaking three years of ongoing maintenance, thereby fulfilling our commitment to jointly protect local ecosystems throughout the corporate value chain.
