Climate Change Data

Chang Wah Technology Co., Ltd.

Climate Impact & Sustainability Data (2020, 2020-01 to 2020-12, 2021, 2022)

Reporting Period: 2020

Environmental Metrics

Renewable Energy Share:4%

ESG Focus Areas

  • Environment
  • Social
  • Human Resource

Environmental Achievements

  • Increased recycled water usage from 13.6% in 2019 to 16% in 2021E.
  • 4% electricity of new factory will come from solar energy vs. existing factory only 0.3%.

Social Achievements

  • Committed to complying with the Responsible Business Alliance (RBA) and the Global e-Sustainability Initiative (GeSI), including the Responsible Minerals Initiative (RMI).

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Responsible Business Alliance (RBA), Global e-Sustainability Initiative (GeSI), Responsible Minerals Initiative (RMI)

Reporting Period: 2020-01 to 2020-12

Environmental Metrics

Total Carbon Emissions:29,783 tCO2e (2021)
Renewable Energy Share:0.12% (2021)
Total Energy Consumption:74,459,665 kWh (2021)
Water Consumption:738,208 m3 (China 2021), 461,220 m3 (Taiwan 2021), 590,524 m3 (overseas 2021)
Waste Generated:2,137 tons (2021)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Increased wastewater recycling volume by 10% each year (target)
  • Reduced carbon dioxide emissions year by year (target)
  • Electricity intensity in 2021 was 18% lower than in 2020.

Social Achievements

  • Conducted at least two plant-wide disaster prevention drills and emergency responses every year.
  • Prioritized local recruitment and hiring.
  • Provided various training courses for employees.
  • No labor disputes in 2021.

Governance Achievements

  • Company management evaluation passed by the Board of Directors in 2020.
  • Established an evaluation system for the board incorporating sustainability factors.
  • Established an audit committee to supervise accounting, auditing, and financial reporting processes.
  • Adopted relevant regulations on business conduct and ethics.

Climate Goals & Targets

Long-term Goals:
  • Become the world’s largest IC lead frame supplier by 2025.
Medium-term Goals:
  • Increase renewable energy by implementing more solar panels.
Short-term Goals:
  • Reduce general waste generation by 5% in 3-5 years.

Environmental Challenges

  • Extreme weather events affecting plant equipment and operations (short-term climate risk)
  • Gradual shortage of energy and resources due to extreme weather (medium- and long-term climate risk)
  • Manpower shortage
Mitigation Strategies
  • Implemented measures to reduce greenhouse gas emissions and improve energy efficiency.
  • Developed alternative sourcing strategies.
  • Hired foreign colleagues to supplement manpower gap.

Supply Chain Management

Supplier Audits: Regular visits and appraisals

Responsible Procurement
  • Supplier management procedure to ensure safety of working environment, environmental protection, working conditions, human rights, and social responsibility.
  • Conflict-free minerals requirement.
  • RBA and RMI compliance.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (typhoons, floods, droughts)
Transition Risks
  • Gradual shortage of energy and resources
Opportunities
  • Promote low-carbon technologies and processes
  • Improve supply chain stability
  • Improve resilience to natural disasters

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO/TS 16949, ISO 14001

Third-party Assurance: PwC Taiwan

Reporting Period: 2021

Environmental Metrics

Renewable Energy Share:4%

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reclaimed water usage reached 20.6% in 2021 vs 13.6% in 2019.
  • 4% of electricity demand at the new factory will be supplied from solar energy vs. existing factory of only 0.3%.

Social Achievements

  • ESOP program transferred over 1,341,000 shares to employees
  • New fab expected to create more than 150 new job opportunities.
  • Commitment to complying with the Responsible Business Alliance (RBA), the Global e-Sustainability Initiative (GeSI), and the Responsible Minerals Initiative (RMI).

Governance Achievements

  • Year-over-year improvement in Sustainalytics ESG Score

Climate Goals & Targets

Supply Chain Management

Responsible Procurement
  • Commitment to complying with the Responsible Business Alliance (RBA), the Global e-Sustainability Initiative (GeSI), and the Responsible Minerals Initiative (RMI).

Climate-Related Risks & Opportunities

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:55,204 tCO2e/year
Scope 1 Emissions:1,947 tCO2e/year
Scope 2 Emissions:53,257 tCO2e/year
Scope 3 Emissions:9,033 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:302,139 GJ/year
Water Consumption:706 megaliters/year
Waste Generated:20,041 tons/year
Carbon Intensity:3.825 tCO2e/millions of NT$ in 2022

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Increased water recycling rate by 6% every year from 26% in 2019 to 38% in 2022.
  • Recycled 2,114 metric tons of waste in 2022 (nearly four times the volume in 2019).
  • Electricity intensity reduction of 8% in 2022 compared to 2021.

Social Achievements

  • Proportion of female employees increased to 38.6% in 2022.
  • Gender pay gap narrowed to 39% in 2022.
  • 145,982 vocational training hours provided to 19,518 participants in 2022 (13% increase from 2021).

Governance Achievements

  • Established a zero-tolerance policy for non-compliant behaviors and strictly prohibits corruption.
  • Implemented a comprehensive corporate governance system based on FSC guidelines and internal Code of Practice.
  • Achieved 100% attendance rate at Board meetings in 2022.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Increase water recycling volume by 10% each year.
  • Reduce carbon dioxide emissions every year.

Environmental Challenges

  • Climate change may lead to extreme weather events affecting equipment and operations.
  • Talent gap.
  • Shrinking profit margins due to competition.
Mitigation Strategies
  • Implemented energy-saving schemes and installed renewable energy facilities.
  • Initiated talent nurturing policies and recruited foreign workers.
  • Focused on major customers and improved production efficiency.

Supply Chain Management

Supplier Audits: Annual audits and evaluations for high-risk suppliers.

Responsible Procurement
  • Conflict minerals statement
  • RBA and RMI program participation

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (typhoons, floods, droughts)
Transition Risks
  • Compliance with climate change-related regulations
Opportunities
  • Promote low-carbon technology and process; improve supply chain stability; improve natural disaster resilience.

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards - Semiconductor industry

Certifications: ISO 9001, ISO 14001

Third-party Assurance: DNV Business Assurance Co., Ltd. (DNV)

UN Sustainable Development Goals

  • Goal 1: No Poverty
  • Goal 3: Good Health and Well-being
  • Goal 4: Quality Education
  • Goal 5: Gender Equality
  • Goal 6: Clean Water and Sanitation
  • Goal 7: Affordable and Clean Energy
  • Goal 8: Decent Work and Economic Growth
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
  • Goal 16: Peace, Justice and Strong Institutions

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

  • Pre-mold metal substrate (PMMS) for mini LEDs
  • Lead frames for automotive power management and GaN/SiC applications

Awards & Recognition

  • Outstanding Enterprise Award for Recycling (2021)