Climate Change Data

Phihong Technology Co., Ltd.

Climate Impact & Sustainability Data (2015, 2016, 2021)

Reporting Period: 2015

Environmental Metrics

Total Carbon Emissions:20,028 tCO2e/year
Scope 1 Emissions:650 tCO2e/year
Scope 2 Emissions:19,378 tCO2e/year
Water Consumption:610,334 m3/year

ESG Focus Areas

  • Economy
  • Environment
  • Society

Environmental Achievements

  • Carbon reduction in 2015 reached 138 metric tons, increasing by 3.8% compared to 2014.
  • Greenhouse gas emission (scope I) reduced by 40% compared to 2014.
  • Environmental protection investment reached NTD27,638,672.

Social Achievements

  • Won the silver medal for TTQS Training Quality Evaluation awarded by the Ministry of Labor of Executive Yuan.
  • CSR report won the Bronze Prize of Taiwan Sustainability Award.
  • Annual per capita hours for employee training reached 21.9 hrs.

Governance Achievements

  • Established the [Corporate Sustainable Development Committee] and [Configuration Methods for Business Council for Sustainable Development].

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Comprehensive application of portable information devices
  • Promote global marketing system
  • Reach the goal of increasing capacity and output value
Short-term Goals:
  • Reduce consumption power by 15MW and shorten development period by 25%
  • Reduce heavy industry and waste product yield
  • Promote the company’s gross profit by two times above

Environmental Challenges

  • Reduction in economic performance and Phihong’s consolidated revenue, and loss appeared for the first time.
  • Impact and challenge of unstable major economic entities and red supply chain in the world.
Mitigation Strategies
  • Integrating expectations of all interested persons into Phihong’s operation strategy consideration.
  • Focusing on corporate social responsibility and honest operation.
  • Promoting low-carbon operation and green energy products.

Supply Chain Management

Supplier Audits: 25% of core suppliers completed re-evaluation and audit plan in 2015

Responsible Procurement
  • EICC Code of Conduct
  • Conflict Minerals Policy
  • RoHS compliance

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme climate events
  • Days of extremely high temperature increase
Transition Risks
  • High rise of energy price
  • Energy supply interruption
  • Carbon price causes the rise in raw material price and increase in transportation cost
Opportunities
  • Promote green products or renewable energy to alleviate climate change
  • Excavate opportunities derived by regulations

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: AFNOR Group

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 11
  • Goal 13
  • Goal 14
  • Goal 16
  • Goal 17

The report aligns with various SDGs through initiatives related to poverty reduction, hunger elimination, health, education, gender equality, water and sanitation, energy, economic growth, innovation, sustainable cities, climate action, ocean conservation, peace, and partnerships.

Sustainable Products & Innovation

  • Energy-saving large-power server power supply
  • Large-power charging power supply for tooling machines
  • Solar energy inverters
  • Large capacity battery energy storage
  • Electric motor charging solutions

Awards & Recognition

  • Silver medal for TTQS Training Quality Evaluation
  • Bronze Prize of Taiwan Sustainability Award

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:28,339 tCO2e/year (DongGuan Factories)
Scope 1 Emissions:1135 tCO2e/year (DongGuan Factories)
Scope 2 Emissions:27,204 tCO2e/year (DongGuan Factories)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:111,117 MWh/year (DongGuan Factories)
Water Consumption:702,344 m3/year (DongGuan Factories)
Waste Generated:1318.33 tons/year (DongGuan Factories)
Carbon Intensity:2.6 T-CO2e/NTD 1 million (DongGuan Factories)

ESG Focus Areas

  • Environmental Protection
  • Social Welfare
  • Corporate Governance

Environmental Achievements

  • Energy reduction performance: Phihong Taiwan: 120,000 kWh (Linkou HQ), DongGuan Factories: 21,081 kWh
  • Environment monitoring rate achieves 100%
  • Obtained ISO13285 medical instrument quality management system certification in 2016Q3. 2016Q4 EV products passed ISO9001 certification
  • Tainan factory completed in 2015 has solar panels installed on the roof, average annual energy output of more than 30,000 degrees, reducing carbon emissions.

Social Achievements

  • Hiring of 8 R&D candidates in military service
  • Introduced new staff to have lunch with senior management
  • Silver award for sustainable corporation in Taiwan 2016
  • Annual supplier statement of guarantee in integrity achieved a rate of 67.12%, a 5.12% growth from 2015
  • Various charity donations and community engagement activities

Governance Achievements

  • Company restructuring and reorganization at the end of 2016
  • Established the [Standard of Corporate Ethics and Business Conduct]
  • 67.12% of core suppliers signed and returned the “Pledge of Integrity”
  • No confirmed cases of corruption

Climate Goals & Targets

Long-term Goals:
  • Deficit turned to profit, raising overall revenue for stable growth and profit
Medium-term Goals:
  • Greenhouse gas emissions in 2020 will reduce by a minimum of 5% based on 2010 greenhouse gas emission volume
  • Energy consumption in 2020 will decrease by 5% based on 2016 energy usage statistics
Short-term Goals:
  • Achieve a supplier signing rate of 80% by the end of 2017

Environmental Challenges

  • Negative operating net profit in 2016
  • Higher labor costs in China
  • Global economic slowdown
  • Increased greenhouse gas emissions compared to 2015
  • Water usage increase at Linkou HQ due to live water in fish pond
Mitigation Strategies
  • Aggressive development of non-mobile based products
  • Organizational restructuring
  • Planning and implementing response measures for greenhouse gas emissions
  • Setting energy conservation targets and utilizing government energy diagnosis service resources
  • Using renewable energy (solar panels)
  • Implementing a 3-phase measure in response to water restrictions
  • Green manufacturing practices
  • Smart energy management systems
  • Insurance planning

Supply Chain Management

Supplier Audits: 17 new suppliers audited in 2016

Responsible Procurement
  • Code of conduct
  • Supplier sustainability requirements
  • Environmental protection requirements
  • Labor practice principles
  • Human rights principles

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Resource shortage
  • Natural disasters
Transition Risks
  • Increased energy pricing
  • Carbon pricing
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Renewable energy
  • Green manufacturing

Reporting Standards

Frameworks Used: GRI G4, AA1000 (2008)

Certifications: ISO 14001, OHSAS 18001, ISO 13485:2016 (medical equipment)

Third-party Assurance: AFNOR Group

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 16
  • Goal 17

Various initiatives contribute to these goals as detailed in Appendix 3

Sustainable Products & Innovation

  • Energy-efficient chargers
  • Halogen-free products
  • RoHS compliant products
  • EV charging products
  • Medical power supplies

Awards & Recognition

  • Silver award for sustainable corporation in Taiwan 2016

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:24,489.6 tCO2e/year (total)
Scope 1 Emissions:495.6 tCO2e/year
Scope 2 Emissions:23,994.1 tCO2e/year
Waste Generated:1,349.29 tons/year (total)

ESG Focus Areas

  • Environmental Sustainability (E)
  • Social Inclusion (S)
  • Corporate Governance (G)

Environmental Achievements

  • PHIHONG Taiwan: total emission reduction of 5.0% (compared to the base year 2017); PHIHONG Dongguan: total emission reduction of 13.6% (compared to the base year 2016).
  • PHIHONG Taiwan and PHIHONG Dongguan reduced their carbon emissions by a total of 3,891 T-CO2e compared to the base year.
  • Continued to complete third-party certification ISO 14001. The environmental monitoring rate reached 100%, in line with regulatory requirements.
  • No environmental protection violations occurred in 2021.

Social Achievements

  • Won the Gold Award for “Happy Enterprise” again in 2021 in Human Resource Bank’s poll.
  • 82% of core suppliers signed the Integrity Pledge, a 5% increase from 2020.
  • Continuing to support the International Beach Cleanup Day, we have been promoting coastal beach cleanup activities for 4 consecutive years.

Governance Achievements

  • Established the “Office of Sustainable Development” under the “Corporate Sustainability Committee”.
  • Won the ranking of “6% to 20%” in the 8th Corporate Governance Rating.
  • No ethical incidents involving integrity and corruption in 2021.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2050 (implied).
Medium-term Goals:
  • Reduce carbon emissions by 4.2% per year to achieve an average temperature rise of below 1.5°C.
  • 100% supplier sign-up rate by 2025
  • Selling 15,000 EV charging points in Europe and the United States by 2025
Short-term Goals:
  • Reduce carbon emissions by 2.5% per year.
  • Achieve healthy workplace performance certification by 2022.
  • Complete SBTi target by 2022.

Environmental Challenges

  • Global pandemic, extreme climate changes, and changing global political and economic situations.
  • Supply chain disruptions due to material shortages and price increases.
  • COVID-19 pandemic impacting operations and employee health.
Mitigation Strategies
  • Established the Office of Sustainable Development to handle sustainability-related issues.
  • Integrated important principles of Task Force on Climate-Related Financial Disclosures (TCFD) into business decisions.
  • Implemented various measures to prevent the epidemic, including isolation leave, shifting home office, paid vaccination leave, vaccination insurance, and COVID tests.
  • Developed alternative sourcing strategies and increased inventory levels.
  • Expanded production base in Vietnam to diversify supply chain risks.

Supply Chain Management

Supplier Audits: 34 new supplier reviews (QSAs); 51 supplier reviews (QPAs)

Responsible Procurement
  • Integrity Pledge
  • Confidentiality Agreement
  • Environmental and Social Responsibility Pledge
  • Conflict Minerals Reporting Template
  • RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoon, rain, and floods
  • Unstable water supply
  • Increase in average temperature
  • Rise of sea level
Transition Risks
  • Development of regulations related to greenhouse gases and renewable energy
  • Low carbon product market and service demand
  • Select investment targets for non-financial performance
Opportunities
  • Discovering new business opportunities
  • Energy efficiency improvement
  • Low carbon renewable energy
  • Energy efficient green building
  • Low carbon product development and services

Reporting Standards

Frameworks Used: GRI Standards: Core options, SASB industry standards, UN Sustainable Development Goals (SDGs), AA1000 AP, TCFD

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, IATF 16949, ISO 13485

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 16

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • 280W Ultra High Power GaN Charger
  • POE Switch 530W and 950W
  • 45W, 65W, and 100W USB PD3.0 products
  • 360kW EV charging point

Awards & Recognition

  • Gold Award in the “Happy Enterprise” poll
  • Silver Award of Taiwan Corporate Sustainability Award
  • Silver Award of EcoVadis Corporate Social Responsibility Achievement Recognition
  • EV Ready certification