Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environment and Energy
• Employee Care and Development
• Welfare Initiatives
• Economic Performance
• Green Products and Supply Chain

Environmental Achievements

• Increased recycling and reuse rate from 64.9% in 2017 to 73.6% in 2018 and 84.1% in 2019.
• Exceeded electricity saving target by reducing 192.757 tons CO2e/year (vs. target of 189.215 tons CO2e/year).

Social Achievements

• Received the “Outstanding Enterprise Award for Advancing Workplace Equality” from Hsinchu Science Park Bureau in 2018.
• Implemented unpaid parental leave system with 87.5% reinstatement rate and 81.8% retention rate in 2019.
• Donated NT$1,524,209 to various charities in 2019.

Governance Achievements

• Increased the percentage of independent directors on the Board to 56% in 2019.
• Established the Remuneration Committee and the Audit Committee, both composed of independent directors.
• Passed CNS 27001:2014 (ISO/IEC 27001:2013) Information Security Standard certification.

Climate Goals & Targets

Environmental Challenges

• Potential legal risks related to greenhouse gas reduction regulations.
• Physical risks from extreme weather events impacting supply chain and production.
• Increased costs associated with using low-carbon and certified environmentally friendly products.

Mitigation Strategies

• Voluntarily established greenhouse gas inventory mechanisms.
• Seeking alternative sourcing strategies to mitigate supply chain disruptions.
• Actively responding to stakeholder strategies and actions for carbon management.

Supply Chain Management

Responsible Procurement

• eGreen system® platform for tracking green components.
• Requirement for suppliers to provide raw materials free of hazardous substances.
• Compliance with RBA Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts, typhoons)

Transition Risks

• Regulatory changes related to greenhouse gas emissions.
• Increased costs of materials/components due to green regulations.

Opportunities

• Increased market demand for renewable energy.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001:2015, IECQ QC 080000:2017, ISO 14001:2015, TL 9000 R6.1 / R5.6, ISO 45001:2018, CNS 27001:2014

Third-party Assurance: Deloitte Taiwan

Awards & Recognition

• Fifth Taiwan Mittelstand Award (2019)
• Best Practice Award for Manufacturing Quality in the National Quality Award (2018)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Charity
• Corporate Governance

Environmental Achievements

• Waste wood pallet reuse rate increased by 5% in four months, reducing waste.
• Waste recycling rate reached 77.08%.
• Awarded the Special Award for Environmental Sustainability by the Ministry of Economic Affairs for leopard cat rice contract farming project.

Social Achievements

• Awarded the Maternal Health Award in 2021 and Excellent Healthy Workplace Award for three consecutive years.
• Disabling injury frequency rate decreased by 60% compared with 2020.
• Invested NT$21,295,147 in social engagement events.

Governance Achievements

• Nine new directors were elected, six of whom are independent directors.
• Established ISO28000 supply chain security management system.
• No corruption complaints in 2021.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and employee well-being.
• Global material shortages causing supply chain disruptions.
• Climate change risks (typhoons, floods, droughts).

Mitigation Strategies

• Established a pandemic prevention command center.
• Implemented rapid testing and flextime mechanisms.
• Improved Material Status Dashboard for timely material information.
• Developed a detailed extreme climate response mechanism.

Supply Chain Management

Supplier Audits: Annual written audits of RBA Code of Conduct for key suppliers.

Responsible Procurement

• RBA Code of Conduct
• Conflict Minerals Reporting Template
• Supplier sustainability requirements
• ISO28000 Supply Chain Security Management System

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons/heavy rain
• Water shortage/drought
• Average temperature rise
• Sea-level rise

Transition Risks

• Climate Change Law Amendments
• Pricing of Greenhouse Gas Emissions
• EU Carbon Border Adjustment Mechanism (CBAM)
• Customer demand for carbon reduction

Opportunities

• Development of energy-efficient products
• Use of low-carbon energy sources
• Participation in renewable energy source projects

Reporting Standards

Frameworks Used: GRI Standards 2018, SASB

Certifications: ISO 14001:2015, ISO 14064-1:2018, ISO 50001:2018, ISO 45001:2018, IECQ QC080000, CNS 27001:2014 (ISO/IEC 27001:2013), ISO 28000

Third-party Assurance: SGS Taiwan, Ltd.

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 15: Life on Land
• SDG 17: Partnerships for the Goals

Accton's initiatives contribute to these SDGs through various programs and partnerships.

Sustainable Products & Innovation

• Green products with no hazardous substances

Awards & Recognition

• Buying Power Environmental Sustainability Special Award
• Buying Power Purchasing Award (Third Place)
• Maternal Health Friendly Award
• Excellent Healthy Workplace Award (three consecutive years)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Social and Human Rights

Environmental Achievements

• Overall electricity intensity decreased by 20.8% compared to 2021.
• Waste wooden pallet reduction project achieved a 65% reduction in overall waste.
• Zhunan Plant received the "Ministry of Environment and Miaoli County Private Enterprise and Group Green Procurement - Outstanding Achievement Award."
• Received a B grade score from the Carbon Disclosure Project (CDP).

Social Achievements

• Received the SGS 2023 ESG Awards - Talent Development Award.
• Listed among "World's Best Companies 2023" by TIME Magazine.
• Recognized with the "National Excellent Health Workplace Evaluation - Nutrition and Health Award" by the Health Promotion Administration, MOHW.
• Accton Arts Foundation was honored with the Bronze Award of the Ministry of Culture's Arts & Business Awards.
• Accton Group contributed NT$13,980,000 to various social engagement activities.

Governance Achievements

• Obtained ISO 22301 Business Continuity Management System certification.
• Established a permanent "Risk Management Office."
• Completed ethical and integrity training for all employees (100% coverage for new employees).
• Ranked in the top 21% to 35% among 1,700 listed companies in the 10th Corporate Governance Evaluation System.

Climate Goals & Targets

Environmental Challenges

• Increasing diversity of business risks (geopolitical and economic trade issues).
• Risks of phishing emails or hacker intrusions affecting customer privacy data and corporate reputation.
• CSR behaviors of suppliers indirectly impacting Accton's reputation.
• Diverse customer expectations for products and aligning them with low-carbon design goals.
• Complex interlinked systems of climate risk, making the extent of impact from weather disasters difficult to predict.
• Operational growth, addition of new plants and equipment posing challenges in achieving greenhouse gas reductions.
• Market trends favoring energy-efficient products; failure to keep up could lead to sales decline.
• Expansion of management scope and impact during the addition of new plants and equipment requiring more meticulous risk assessment and awareness building for occupational health and safety.

Mitigation Strategies

• Established a permanent "Risk Management Office."
• Implemented ISO 27001 Information Security Management System and provided training.
• Implemented RBA management processes and regular supplier audits.
• Increased investment in R&D of low energy consumption and high transmission efficiency technologies.
• Developed energy-saving and carbon reduction plan, participated in CDP.
• Established the "Accton Academy of Sustainability" with supply chain partners.
• Progressively developing low-carbon, high-efficiency technologies and products.
• Enforcing occupational health and safety management and providing training.

Supply Chain Management

Supplier Audits: 153 suppliers completed RBA survey in 2023

Responsible Procurement

• RBA Code of Conduct
• Responsible mineral procurement policy
• Integrity Commitment Statement
• WIC-CE05002 Product Hazardous Substance Management Specification
• IEC 62474 Material Declaration Standards

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events

Transition Risks

• Enhanced emission reporting obligations
• Products and services supplanted by low-carbon technologies

Opportunities

• Develop or expand low-carbon products and services
• Capitalize on carbon reduction opportunities
• Towards more efficient buildings

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Certifications: ISO 22301, ISO 14001, ISO 45001, ISO 50001, IECQ QC080000, ISO 9001, TL9000, ISO 14064-1, ISO 14067, ISO 27001, ISO 28000

Third-party Assurance: SGS Taiwan, Ltd.

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 8
• SDG 9
• SDG 13

Initiatives described throughout the report contribute to these goals.

Sustainable Products & Innovation

• 800G switch
• Immersion cooling products

Awards & Recognition

• SGS 2023 ESG Awards - Talent Development Award
• Ministry of Culture's Arts & Business Awards (Bronze)
• Miaoli County Private Enterprise and Group Green Procurement - Outstanding Achievement Award