Climate Change

Climate Change

Organizational Structure

The Board of Directors and management play different roles in overseeing climate-related issues: 
Board of Directors' Responsibilities: The board is responsible for overseeing the governance of climate-related risks and opportunities. The board's role is to establish and supervise the policies and mechanisms regarding climate-related issues, ensuring sufficient resources are allocated.
Management's Responsibilities: The management plays a role in the governance processes, controls, and procedures used to monitor, manage, and oversee climate-related risks and opportunities. GameSparcs' sustainability development task force is responsible for planning and implementing GameSparcs' TCFD (Task Force on Climate-related Financial Disclosures) controls and procedures.

Risks and Opportunities

Business Model and Value Chain

The value chain in the online gaming industry is a complex and integrated system, including key activities such as game development and design, game operation and management, marketing, and player services.

Climate-related Transition Plans - Policies and Regulations

In 2023, GameSparcs actively addressed climate risks, primarily following the greenhouse gas (GHG) inventory actions promoted by the Financial Supervisory Commission (FSC). Through systematic identification and management, we are committed to achieving the goal of reducing GHG emissions. To promote sustainability, GameSparcs' sustainability development task force commissioned an accounting firm to assist with the GHG inventory. In November 2023, the entire group launched GHG inventory training, and in the first quarter of 2024, we completed the GHG inventory for Scope 1 and Scope 2 emissions for GameSparcs (excluding subsidiaries) for the 2023 fiscal year.

Financial Position, Performance, and Cash Flow

Short-term: GameSparcs' primary operations are online game operations and R&D. GHG emissions are relatively low compared to many other industries. As of 2023, we have not observed any climate-related risks that may have a significant impact on our financial statements.
Medium-term: We plan to set 2023 as the baseline year for Scope 1 and Scope 2 emissions. We are also evaluating strategies to reduce these emissions, with the expectation that these efforts will not have a significant financial impact in the short term. In addition, we continue to enhance our skills, capabilities, and resources for quantifying the potential financial impacts of climate-related risks or opportunities through external training.
Long-term: We recognize that climate change is a global issue requiring collective action. We believe stakeholders expect us to demonstrate transparency and make continuous progress. To meet stakeholder expectations, we are working to establish monitoring mechanisms to track the gradual increase of any risks and opportunities. We are also actively engaging in sustainable development, including talent sustainability policies and the application of generative AI technology to reduce resource waste.

Climate Resilience and Scenario Analysis

GameSparcs is currently gathering data on overall climate resilience, including assumptions and training provided by professional institutions. We have completed the collection of GHG emissions, energy consumption, and other key climate-related indicators for 2023. We aim to assess our resilience to extreme weather events, temperature rise, changing rainfall patterns, and other risks caused by climate change. This will inform the development of our carbon-neutral goals and strategies.

Indicators and Goals

International attention on TCFD (Task Force on Climate-related Financial Disclosures) disclosures is increasing. To effectively assess the risk-adjusted potential returns, ability to fulfill financial obligations, and progress in managing and adapting to risks, GameSparcs monitors and evaluates the relevant indicators and goals for climate-related risks and opportunities. Additionally, we align with the FSC’s "Corporate Governance 3.0 Sustainability Development Blueprint," the GRI standards, TCFD, and SASB guidelines, enhancing the disclosures in our sustainability report and linking climate risks to company goals and policies. In August to September 2023, GameSparcs held a series of sustainability development task force meetings to discuss ESG and TCFD-related issues, with quarterly reports on GHG inventories and sustainability issues provided to the board of directors.
GameSparcs is classified under the "Technology and Communication Industry - Software and Information Technology Services" according to SICS, and the "Industry Basis Implementation Guide" under International Financial Reporting Standards (S2), Chapter 58 (TC-SI). This sector is highly focused on innovation and relies on human and intellectual capital. New business models in the industry include cloud computing, software-as-a-service (SaaS), virtualization, big data analytics, and human-machine learning. Additionally, brand value is a key factor in the industry’s scaling.

Cross-Industry Climate-related Indicators

Greenhouse Gas Inventory Information and Assurance Status

Boundary and Inventory Targets: For the 2023 fiscal year, GameSparcs' greenhouse gas (GHG) inventory included the seven GHGs listed under the Kyoto Protocol: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), nitrogen trifluoride (NF3), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).

Inventory Standards: The GHG inventory was conducted in accordance with ISO14064-1:2018 standards.

Quantification Calculation: Following the guidelines of ISO14064-1, the selection of GHG quantification methods focuses on minimizing uncertainty and ensuring accurate, consistent, and reproducible results. GameSparcs employed the emission factor method for quantification, using the following formula:

Annual Activity Data (Usage)×Emission Factor×IPCC Global Warming Potential (GWP) Value=Carbon Emissions (tons CO2e) / year\text{Annual Activity Data (Usage)} \times \text{Emission Factor} \times \text{IPCC Global Warming Potential (GWP) Value} = \text{Carbon Emissions (tons CO2e) / year}

Greenhouse Gas Inventory Information

The GHG emissions for the past two years are outlined below. The inventory for Scopes 1 and 2 pertains to GameSparcs' Taichung office and has not yet been subject to third-party verification. GameSparcs plans to conduct external assurance of its GHG inventory by 2027.