Posted inSectors

Delta honoured with Double A List Ratings by CDP for its contribution to climate change and water security issues

The company’s net-zero goal also passes SBTI’s review as first in Asia’s technology hardware and equipment industry

Delta, a global provider of power and thermal management solutions, announced its selection as one of 57 companies (out of a pool of 18,700) from around the world to win a double A List rating on the two environmental issues of “Climate Change” and “Water Security Management” in the 2022 CDP evaluation. By earning the CDP’s A List for three consecutive years on the “water security” issue, Delta further cements its ESG leadership status regarding climate change and water security action. Furthermore, in response to the 1.5°C pathway for keeping global warming under control, Delta has formulated a long-term strategy and target of achieving net zero emissions at all global operating sites by 2050*, which has been approved by the SBTi’s review. This makes Delta the first company in the technology hardware and equipment industry in Asia and the 125th company worldwide to have passed the SBTi’s net-zero target review**. Delta has also set a short-term target of reducing its greenhouse gas emissions by 90% by 2030 compared to 2021, which is stricter than the 1.5°C pathway required by SBTi (i.e., 42% by 2030).

Delta is actively taking climate change governance measures. These include requiring the RE100 (use of 100% renewable electricity) achievement rate in top-level managers’ performance indicators since 2021 and adopting an internal carbon pricing mechanism at US$300 per metric ton of carbon emissions. Funds generated through the internal carbon price initiative are used for actions that help achieve Delta’s RE100 and net zero goals, such as energy conservation and carbon emissions reduction projects, investments in renewable electricity, and research and development on carbon-negative technologies and low-carbon product innovation. Delta also formally incorporated biodiversity into the company’s sustainability strategies to respond to the United Nations’ Sustainable Development Goals with practical actions and its corporate core capabilities.

In terms of water security management, although Delta is not a major water user, it actively sets strategic goals. It has developed and implemented a methodology in daily operations and its business development process. By analyzing and discussing the risks and opportunities arising from flooding and water shortages brought about by climate change, Delta has established a water risk assessment process covering its supply chains and plants. In 2021, it conducted a water risk assessment of nearly 700 key suppliers and incorporated the assessment results into the decision-making process. Delta also set a target of reducing the overall water intensity by 10% in 2025.