Greenhouse gas (GHG) inventories play a pivotal role in climate change mitigation and effective value chain management of consumer brands. These inventories serve as fundamental tools for assessing and quantifying emissions across organizational operations, enabling informed decision-making and strategic planning. By meticulously tracking GHG emissions from various sources within the value chain, businesses can identify areas that need improvement, implement targeted reduction measures, and enhance overall environmental performance. Moreover, GHG inventories not only facilitate compliance with regulatory requirements but also foster transparency and sustainability-driven innovation that leads to financial and reputational benefits in the long-term. As climate action becomes increasingly important, comprehensive GHG inventories emerge as indispensable assets in navigating the transition towards a low-carbon future.

In the cycling industry, bicycles not only contribute to the transition toward a low-carbon society, but pioneering companies like Giant Group are also actively advancing sustainability by using GHG inventories to identify which business operations to improve upon.

Greenhouse gas inventories encompass three scopes of emissions. Scope 1 includes direct emissions from sources owned or controlled by the company, such as fuel combustion in facilities. Scope 2 refers to indirect emissions from purchased electricity, heating, or cooling consumed by the company. Lastly, Scope 3 covers indirect emissions from sources not owned or controlled by the company, such as business travel, supply chain activities, and employee commuting.

Understanding and addressing all three scopes is crucial for comprehensive GHG management and mitigation strategies. Scope 3 is arguably the most challenging to tackle due to its indirect nature and broad spectrum, requiring extensive data collection and close collaboration with all stakeholders across the value chain. However, there is hope! Per BCG’s 2023 CO2 AI + BCG Carbon Emissions Survey, companies on a global level have made strides in increasing the measuring and reporting of their Scope 3 emissions. Furthermore, 75% and 54% of companies surveyed have joint reduction initiatives with suppliers and their customers respectively, showcasing the importance of collaboration upstream and downstream.

At Giant Group, our commitment to sustainability is reflected in our meticulous management of GHG inventory data, adhering to the internationally recognized ISO14064-1 standard and the GHG Protocol Technical Guidance for Calculating Scope 3 Emissions. From 2021 to 2023, all Greater China companies within the Giant Group have undergone third-party verification of their GHG inventory data, covering Scope 1, Scope 2, and Scope 3 emissions. This comprehensive verification encompasses 85-90% of Giant Group's total GHG emissions. As of 2024, we are actively reviewing data collected from select overseas sales offices in Japan, South Korea, USA, Mexico, Canada, and Australia, with plans for third-party verification underway.

Scope 3 emissions, due to their indirect nature, present unique challenges in inventory management. At Giant Group, we have undertaken a thorough analysis of the 15 categories of Scope 3 emissions to pinpoint areas where we can have the most significant impact, both upstream and downstream. By identifying opportunities for emissions reduction throughout our value chain, we aim to minimize our overall carbon footprint. One notable example of our commitment to sustainability is our focus on reducing carbon emissions associated with the transportation and distribution of YouBike, a public bicycle sharing service in Taiwan.

Central to Giant Group’s GHG emissions strategy is identifying where reductions can be made during the sourcing and production phases; our findings can be accessed in our 2022 Giant Group ESG report. Our 'Innovating a Clean Future' core strategy places a strong emphasis on promoting green production. Notable energy-saving projects include optimizing processes to recover heat from air compressors and replacing outdated facilities with energy-efficient laser cutting machines. This is just our part, and we recognize the need to partner with all stakeholders involved.

Giant Group has long been a pioneer in making quality bicycles accessible to all. As leaders in the cycling industry, we seek to continuously improve our business operations and foster collaboration to drive sustainability and circularity forward. We are likewise actively working towards developing a green factory as part of our commitment to environmental stewardship. While our comprehensive greenhouse gas inventory marks a significant step, we acknowledge that our journey is far from over. We remain committed to pushing the boundaries and raising the bar for a better future for all.