Climate Change Data

Environmental Metrics

ESG Focus Areas

• Company Governance
• Product Quality
• Environmental Protection
• Social Responsibility

Environmental Achievements

• Reduced carbon emissions by 25,035 tons in 2022.
• Reduced water consumption by 958,000 tons in 2022.
• Achieved 93% waste recycling rate.
• All parks passed the AWS Platinum certification audit.

Social Achievements

• Key talent retention rate reached 95.5%.
• Over 50% of charitable donations were used for education.
• More than 190,000 people participated in employee club activities.
• 680,000+ people participated in “Six Loves” activities.

Governance Achievements

• Established an ESG Development Committee chaired by the chairman.
• Established a Risk Management Steering Committee.
• No major violations of laws and regulations occurred in 2022.
• A rating from the Shenzhen Stock Exchange for information disclosure.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on operations.
• Supply chain disruptions due to geopolitical and economic factors.
• Stringent environmental regulations.
• Labor market changes.

Mitigation Strategies

• Set carbon reduction targets and implemented energy-saving and emission-reduction measures.
• Developed alternative sourcing strategies.
• Implemented robust risk management framework.
• Improved water resource management and recycling.
• Implemented various talent retention programs.

Supply Chain Management

Supplier Audits: 179 audits in 2022 (47 environmental and social responsibility audits)

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Conflict minerals management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water scarcity
• Extreme temperatures
• Severe weather events

Transition Risks

• Changes in environmental regulations
• Shifting market demands for low-carbon products

Opportunities

• Development of energy-efficient products
• Increased demand for sustainable products

Reporting Standards

Frameworks Used: GRI Standards 2021, CASS-ESG5.0, MSCI

Certifications: ISO 14001, ISO 45001, ISO 50001, UL2799 Platinum, AWS Platinum

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

The company's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Mini LED backlight technology

Awards & Recognition

• Numerous awards related to human resources, environmental protection, and social responsibility (listed in the report).

Environmental Metrics

ESG Focus Areas

• Human Rights

Social Achievements

• 39 suppliers audited in 2023, with 28 receiving a green rating and 11 a yellow rating; no red ratings leading to business suspension.
• Zero complaints of harassment and discrimination in 2023.
• Various employee benefits offered, including nutritious meals during pregnancy, nursing rooms, early departure for breastfeeding employees, multiple birth subsidies, and additional paid leave beyond mandated maternity leave.

Governance Achievements

• Established a Sustainability Committee within the Board of Directors to review operations, social responsibility, and environmental, safety, and health performance.
• Implemented the Responsible Business Alliance (RBA) Code of Conduct as a management framework.
• Regular internal and external audits conducted, including customer audits and RBA VAP audits.

Climate Goals & Targets

Environmental Challenges

• Work hour management
• Discrimination, diversity, and tolerance
• Occupational health and safety and environment
• Freedom of occupation choice
• Sexual harassment
• Equal pay and equal work
• Forced labor and human trafficking
• Child labor
• Freedom of association and collective bargaining right
• Data privacy and safety
• Liberty and security
• Water resource management
• Air pollution and noise
• Responsible purchasing of minerals

Mitigation Strategies

• Implementation of ISO 45001 Occupational Health and Safety Management System.
• Multiple training and education channels.
• Monthly safety committee meetings.
• Regular occupational risk factor tests.
• Formulated handling measures for occupational injury and accident reporting and investigations.
• Regular drills and exercises.
• Provision of appropriate labor protection equipment.
• Enhanced promotion and regulations regarding PPE usage.
• Regular occupational health checkups for employees in hazardous positions.
• Compliance with UN Universal Declaration of Human Rights, UN Global Compact, UN Guiding Principles on Business and Human Rights, and RBA Code of Conduct.
• Periodic review and revision of management measures.
• Annual internal and external audits.
• Establishment of the “Process for Working Time and Employee Overtime”, adhering to RBA requirements.
• Formulation of the “Process for Humanistic Management” SOP.
• Formulation of the “Prevention of Sexual Harassment and Discrimination Management Regulations”.
• Competitive and reasonable remuneration management system.
• Identity verification of applicants in recruitment operations.
• Early warning system to prevent employee overtime.
• Payment of employee remuneration in accordance with all relevant laws.
• Establishment of various communication channels for employee complaints.
• Establishment of the “Process for Humanistic Management” SOP and annual training on the prohibition of forced labor and human trafficking.
• Commitment to diversity and inclusion and equal treatment.
• Formulation of the “Process for Humanistic Management” and “Process for Employee’s Safety Operation Management”.
• Establishment of the “Special Group Protection Operation Method” for female workers.
• Establishment of the “Procedure for Supplier Social Responsibility Management”.
• Signing of the “Health and Safety Commitment Letter” with suppliers.
• Annual supplier audits and tracking of improvements.
• Supplier education and training.
• Irregular random audits and RBA SAQ ratings on suppliers.
• Requirement for suppliers to implement improvement measures for human rights risks.
• Requirement for suppliers to provide compensation measures for employees who have suffered human rights violations.
• Requirement for suppliers to sign a commitment letter confirming compliance with Avary’s Conflict Minerals Policy.
• Supplier investigations using the Conflict Minerals Reporting Template (CMRT).
• Annual supplier audit plan to conduct audits on conflict minerals.
• Conducting Reasonable Country of Origin Inquiry and due diligence for suitable conflict mineral suppliers.
• Disclosure of information related to conflict minerals management on the company website.
• Compliance with Taiwan Personal Data Protection Act and relevant regulations.
• Establishment of an “Information Security Management Policy”.
• Dissemination of compliance management guidelines and training for employees and suppliers.
• Annual information security audits and internal reviews.
• Strict enforcement of information security policies and customer privacy protection measures.
• Immediate review and improvement measures for violations of privacy rights and personal data protection policies.
• Communication with customers to assess compensation measures.
• Disciplining individuals involved in misconduct or violations.
• Annual AWS system audit and certification for water resource management.
• Annual water risk identification and assessment using the Water Risk Filter AWS and WRI Aqueduct Water Risk Atlas.
• Improvement of wastewater reuse and increase in water reuse rate.
• Introduction of innovative technologies for air pollution reduction.
• Regular outsourced testing to ensure compliance with emission standards.
• Plant area noise monitoring and installation of soundproofing facilities.

Supply Chain Management

Supplier Audits: 39 in 2023

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy
• Health and Safety Commitment Letter

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: RBA Code of Conduct, UN Universal Declaration of Human Rights, UN Global Compact, UN Guiding Principles on Business and Human Rights

Certifications: ISO 45001, ISO 27001