HTC today announced it is implementing its own Internal Carbon Pricing (ICP) mechanism, an important milestone in the company’s sustainability journey and a testament to its commitment to net-zero. By integrating the new mechanism into its decision-making framework, HTC can now more accurately gauge – and improve upon – the environmental impact of its operations and investments.
HTC’s ICP framework will enhance decision-making by ensuring that ESG considerations are embedded in the company’s strategic and financial planning processes. This empowers HTC to evaluate the long-term financial and environmental impact of its ESG initiatives in a more comprehensive, effective way.
“Internal carbon pricing empowers us to bring environmental accountability into our business DNA,” said Madeline Chen, Chief Sustainability Officer at HTC VIVE. “It’s a forward-looking approach that will enhance our competitiveness while ensuring that we’re smart, deliberate, and highly effective in our sustainability efforts.”
HTC’s ICP strategy uses a “shadow pricing” model as its core framework. This works by assigning an internal price to carbon emissions without directly referencing financial transactions. In doing so, the shadow pricing model reflects the cost (in terms of carbon) of guiding informed, environmentally responsible business decisions. The internal shadow price is determined through multiple factors, including the cost of HTC’s investments in renewable energy and carbon credits, as well as the potential impact of carbon tax policies.
Beyond quantifying carbon impact, the ICP program is designed to strengthen climate-related governance and outcomes. Key objectives include:
． Promoting energy efficiency and low-carbon investment: ICP enables HTC to conduct cost-benefit analyses, improve energy efficiency, and invest in low-carbon technologies and projects.
． Enhancing decision-making and risk management: By considering climate factors in decision-making and risk assessments, HTC can better identify low-carbon opportunities and integrate environmental goals into its strategic and financial planning.
． Supporting climate policy goals: ICP helps the company set and achieve climate targets, reduce emissions across its value chain, and maintain compliance with environmental regulations.
． Aligning with international disclosure standards: HTC proactively responded to the blueprint released by the Financial Supervisory Commission in alignment with the IFRS (International Financial Reporting Standards) sustainability disclosure standards – with a specific focus on internal carbon pricing information mentioned by IFRS S2.
The new mechanism supports HTC’s broader climate goals by helping the company work towards its emission reduction targets while ensuring it stays compliant with environmental regulations. The ICP initiative aligns with international sustainability disclosure standards, including the IFRS Sustainability Disclosure Standards, which emphasize transparency around internal carbon pricing.
Additionally, HTC has established an annual review process to update its internal carbon pricing. This ensures the company is adaptive and responsive to new risks, opportunities, and technological developments.
Through this initiative, HTC continues to advance its net-zero emissions goals, demonstrating leadership in sustainability and corporate responsibility in the global tech sector. For more information about HTC’s ESG efforts, visit our website at:https://www.htc.com/us/esg/
