Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Sustainability
• Social Responsibility

Environmental Achievements

• Reduced blood glucose test strip length by 3mm, increasing production per sheet from 250 to 300 and reducing material consumption.
• Total greenhouse gas emissions of 347.509 tCO2e/year.

Social Achievements

• Zero workplace accidents in 2015.
• Employee satisfaction: Domestic 96, International 92.6.
• Organized various sports competitions to promote health and well-being.
• Donated NT$ 3,448,000 to charity.

Governance Achievements

• Implemented a robust compliance program with no violations reported in 2015.
• Held 11 board meetings in 2014.

Climate Goals & Targets

Environmental Challenges

• Sales concentration in the US market (Prodigy accounted for 74.36% of sales in 2011).
• Potential supply chain disruptions due to climate change events.
• Risk of intellectual property infringement.

Mitigation Strategies

• Invested in Prodigy Diabetes Care, LLC to diversify the customer base.
• Developed alternative sourcing strategies.
• Implemented a thorough intellectual property review process for all products.

Supply Chain Management

Supplier Audits: 100% of 45 suppliers audited in 2015

Responsible Procurement

• Supplier assessment based on quality, delivery, service, and price.
• Emphasis on local sourcing (70-80% of raw materials).

Climate-Related Risks & Opportunities

Physical Risks

• Potential supply chain disruptions due to extreme weather events.

Opportunities

• Product design improvements to reduce environmental impact.

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 13485, GMP

Third-party Assurance: SGS Taiwan (AA1000 moderate assurance)

Sustainable Products & Innovation

• Improved blood glucose test strip design to reduce material consumption.

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)
• Governance
• Sustainable Management

Environmental Achievements

• Completed Greenhouse Gas Emissions verification
• Completed Carbon Footprint verification

Social Achievements

• Engaged in social care
• Engaged in social health examination
• Sponsored charitable activities (Annual National OK cup table tennis competition)

Governance Achievements

• Formed 3 independent directors within Board of Directors (2009)
• Set up audit and remuneration committees with independent directors
• Revised articles for director nominations in shareholders’ meeting (2017)
• Adopted electronic nomination for shareholders’ meetings (2018)

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Welfare
• Corporate Governance

Environmental Achievements

• Implemented paper reuse, garbage classification, and energy-saving facilities to reduce greenhouse gas emissions.
• Invested in reducing process water consumption and using rainwater recycling.

Social Achievements

• Implemented various employee welfare measures including regular health check-ups, year-end bonuses, performance bonuses, marriage congratulations, childbirth allowances, funeral allowances, year-end banquet and lottery, domestic travel activities, subsidies for departmental dinners, employee stock ownership plan, and annual employee remuneration.
• Provided professional education and training opportunities to employees.

Governance Achievements

• Established an audit committee consisting of four independent directors.
• Established a compensation committee and a nomination committee.
• Implemented a policy of board member diversity.

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices due to global inflation.
• Increased exchange rate risk due to export-oriented business.
• Competition from four major global blood glucose meter suppliers.
• Vicious competition among peers in low-priced products.
• High export dependency and susceptibility to exchange rate fluctuations.

Mitigation Strategies

• Closely monitoring macroeconomic trends and taking timely measures to reduce impact on operations.
• Strengthening supply chain management and improving process automation.
• Developing innovative business models and expanding into niche markets.
• Expanding business to create new customer sources and maximize total benefit.
• Actively monitoring international financial market and exchange rate fluctuations, and implementing foreign exchange conversions in a timely manner.
• Vertically integrating upstream and downstream, controlling important raw materials and channels, and optimizing processes to improve production efficiency and reduce unit production costs.

Supply Chain Management

Responsible Procurement

• Maintaining good cooperation with main suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRS)

Certifications: EN ISO 13485, US FDA, European CE

Third-party Assurance: PricewaterhouseCoopers Taiwan (PwC)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Corporate Governance

Environmental Achievements

• Implemented paper reuse, garbage classification, turning off lights when leaving a room, and building energy-saving facilities to reduce greenhouse gas emissions.
• Equipment changed to high-efficiency and variable frequency regulation to reduce greenhouse gas emissions.
• Investment in reducing process water consumption and using rainwater recycling to effectively reuse water resources.

Social Achievements

• Donated 1,000 OK blood glucose meters and 2,000 boxes of blood glucose test strips to the Miaoli County Government Oak Blood Glucose Meter Initiative.
• Sponsored the badminton team of Longshan Elementary School in Hsinchu City.
• Contributed to the moral education sponsorship fund of New Tang Dynasty Television.
• Supported the softball tennis team of Hsinchu County Cheng-Gong Junior High School.

Governance Achievements

• Established an Audit Committee on July 3, 2015, consisting of four independent directors.
• Established a Compensation Committee and a Nominating Committee.
• Implemented a policy of board member diversity.
• Regularly conducts employee health checks and fire drills.

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices due to global inflation.
• Increased exchange rate risk due to US dollar volatility.
• Intense price competition among competitors.
• High dependence on exports.

Mitigation Strategies

• Closely monitoring macroeconomic trends and taking timely measures to reduce the impact on operations.
• Matching sales income and procurement expenses in the same currency to achieve natural hedging effects.
• Renegotiating transaction terms with customers and suppliers to mitigate adverse impacts of exchange rate volatility.
• Vertically integrating upstream and downstream processes, controlling important raw materials and distribution channels.
• Continuous process optimization by introducing automation equipment to reduce unit production costs.

Supply Chain Management

Responsible Procurement

• Maintaining excellent relationships with primary suppliers to ensure a stable source of supply.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: US FDA, EU CE, China CFDA, EN ISO15197:2015

Third-party Assurance: PwC Taiwan

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed