Climate Change Data

Hitron Technologies Inc.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:37,480.456 tCO2e/year
Scope 1 Emissions:75.6598 tCO2e/year
Scope 2 Emissions:667.5637 tCO2e/year
Scope 3 Emissions:28,410.3545 tCO2e/year
Total Energy Consumption:12,914,343 KWH/year
Water Consumption:42,409 m3/year
Waste Generated:751.676 tons/year
Carbon Intensity:90.4427 metric tons of CO2e per million USD revenue

ESG Focus Areas

  • Corporate Governance
  • Workplace of Happiness
  • Sustainable Environment Development

Environmental Achievements

  • Reduced carbon emissions by 1% (compared to 2021)
  • Reduced water consumption per million USD revenue by 18% (compared to 2020)
  • Recyclable waste proportion reached 81.43%
  • Reduced electricity consumption per million USD revenue by 28.5% (compared to 2020)
  • 17.7% of Level A/B suppliers completed on-site audits for social responsibility, environmental health, and safety
  • Localized procurement of Mechanical and Electromechanical materials reached 14.6% (2020 as the base year)

Social Achievements

  • 100% of employees received code of conduct training
  • Employees’ participation in charity events reached 376 hours
  • Charity donations amounted to NT$1.82 million
  • Provided an average 14.84 hours of training per employee

Governance Achievements

  • Ranked 21%~35% of the companies in the Corporate Governance Evaluation
  • No violation of environmental laws and regulations
  • No violation of the Labor Standards Act and the Occupational Safety and Health Act

Climate Goals & Targets

Long-term Goals:
  • Reduce carbon emissions by 20% by 2035
  • Reduce energy consumption by 20% by 2035
  • Reduce water consumption per million USD revenue by 30% by 2035
  • Recyclable waste proportion reach 90% by 2035
  • Having the overall salary level reach P75 of the market by 2035
Medium-term Goals:
  • Reduce carbon emissions by 5% and energy saving by 5% by 2026
  • Use 100% post-consumer recycled plastic materials except for customers' specific requirements by 2026
  • Achieve 0 violation of anti-trust laws and regulations and leakage of personal data by 2026
  • Customer satisfaction score reaches 95 points by 2026
  • 0 complaint about data loss by 2026
  • 50% of Level A/B suppliers completed on-site Audit for social responsibility, environmental health and safety by 2026
Short-term Goals:
  • Reduce water consumption per million USD revenue by 20% by 2023
  • Reduce carbon emissions by 3% and energy saving by 15.8% by 2023
  • Use 100% post-consumer recycled plastic materials for European customers and 70% for customers in other regions (except for customers' specific requirements) by 2023
  • Recyclable waste proportion reach 82% by 2023
  • Global GDPR training rate 100% by 2023
  • Antitrust law compliance awareness-raising by 2023

Environmental Challenges

  • Shortage of raw materials and impact of the pandemic
  • US-China trade war
  • Climate change risks (extreme weather, flooding, supply chain disruptions)
  • Customer concentration in North America
  • Rising raw material costs
  • Geopolitical risks
Mitigation Strategies
  • Transferred all production capacity to Vietnam in 2021
  • Accelerated localization of component procurement
  • Developed alternative sourcing strategies
  • Implemented remote backup (BCP)
  • Adopted Free On Board (FOB) as shipment terms
  • Adjusted overseas hub warehousing mechanism
  • Developed low-carbon and energy-saving products
  • Provided green services (local repair services)
  • Implemented ESG-related activities
  • Participated in external ESG ratings and won ESG awards
  • Regularly dredged the drainage system
  • Took measures to prevent flooding

Supply Chain Management

Supplier Audits: 17.7% of Level A/B suppliers

Responsible Procurement
  • Code of Conduct
  • Supplier sustainability requirements
  • Conflict Minerals Due Diligence
  • Green supply chain management system (GPM)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Typhoons, blizzards
  • Water or power shortage
Transition Risks
  • Policy and legal risks
  • Regulatory requirements
  • Technology risk
  • Market risk
  • Reputation risk
Opportunities
  • Resource efficiency (material recycling and reuse)
  • Use of renewable energy
  • Development of green products or services

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD, UN SDGs, AA 1000 AS V3

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 27001, ISO 22301, TL9000

Third-party Assurance: Bureau Veritas Certification Holding S.A.S. (BVC)

UN Sustainable Development Goals

  • SDG 1
  • SDG 2
  • SDG 4
  • SDG 5
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 10
  • SDG 11
  • SDG 12
  • SDG 13
  • SDG 14
  • SDG 15
  • SDG 16
  • SDG 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Products using post-consumer recycled plastics

Awards & Recognition

  • TSAA Taiwan Sustainability Action Award (Silver Award)
  • TCSA Corporate Sustainability Report Award (Bronze Award)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:26,323.456 tCO2e/year
Scope 1 Emissions:207.8842 tCO2e/year
Scope 2 Emissions:6,134.1108 tCO2e/year
Scope 3 Emissions:19,981.4611 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:9,143,479 KWh/year
Water Consumption:30,084 m3/year
Waste Generated:439.1615 tons/year
Carbon Intensity:10.8% (2022 as base year)

ESG Focus Areas

  • Corporate Governance
  • Workplace of Happiness
  • Sustainable Environment Development

Environmental Achievements

  • Reduced water consumption per million USD revenue by 20.7% (2020 as base year)
  • Reduced electricity consumption per million USD revenue by 31% (2020 as base year)
  • Recyclable waste proportion reached 71.02%
  • Reduced greenhouse gas emissions (Scope 1 & 2) by 31.4% (2021 as base year)
  • Packaging materials reduced by 32.42 metric tons, reducing carbon emissions by 66.46 tCO2e
  • Obtained ISO 14067 certification for product carbon footprint for one product

Social Achievements

  • 34.4% of Level A/B suppliers completed on-site audits for social responsibility, environmental health, and safety
  • Provided an average of 29.35 hours of training per employee
  • Employees’ participation in charity events reached 410 hours
  • 100% of employees received code of conduct training
  • Average customer satisfaction score of 89 points

Governance Achievements

  • Ranked in the 21%~35% range in the 10th corporate governance evaluation
  • No violation of environmental laws and regulations
  • No violation of the Labor Standards Act and the Occupational Safety and Health Act
  • No violation of antitrust laws and regulations
  • No significant violations of regulations incidents
  • No leakage of personal data
  • No material corruption risks and events discovered

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Reduce water consumption per million USD revenue by 10% (2020 as base year)
  • Reduce electricity consumption per million USD revenue by 30.5% (2020 as base year)
  • Increase recyclable waste proportion to 90%
  • Increase PCR plastic use to 35% of products
  • Achieve RE60 by 2030
  • Achieve RE100 by 2040
Short-term Goals:
  • Reduce carbon emissions by 2% (2021 as base year)
  • Reduce water consumption per million USD revenue by 2% (2020 as base year)
  • Reduce electricity consumption per million USD revenue by 15.8% (2020 as base year)
  • Increase recyclable waste proportion to 82%
  • Fulfill SBTi commitment by 2024
  • Achieve RE10 by 2024
  • Increase PCR plastic use to 35% of products

Environmental Challenges

  • Overall economic environment (inventory adjustment) impacting KRI implementation
  • Climate-related risks (policy and legal risks, technology risks, market risks, reputation risks, extreme weather events)
  • Supply chain challenges (meeting international labor and environmental standards)
Mitigation Strategies
  • Implementing the company's risk management system and regularly assessing risk response measures
  • Establishing a corporate DNA of compliance
  • Improving the company's financial system and optimizing customer structure
  • Understanding customers' needs and expectations, improving services based on feedback
  • Following the Hitron Code of Conduct for Suppliers and auditing key suppliers according to RBA Standards
  • Regularly dredge the drainage system and take measures to prevent flooding
  • Adopting Free On Board (FOB) as shipment terms and adjusting overseas hub warehousing
  • Implementing remote backup (BCP) mechanism
  • Increasing the number of direct labor recruits to reduce overtime hours
  • Forming independent trade unions or joint trade union organizations
  • Improving human rights-related internal control systems

Supply Chain Management

Supplier Audits: 34.4% of Level A/B suppliers audited on-site

Responsible Procurement
  • Hitron Code of Conduct for Suppliers
  • RBA Standards
  • Local procurement (35.6% of mechanical and electromechanical materials)
  • Green Product Management System (GPM)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (flooding, typhoons, blizzards)
  • Water or power shortages
Transition Risks
  • Policy and legal risks (carbon tax/fee)
  • Technology risks (demand for low-carbon products)
  • Market risks (customer behavior changes)
  • Reputation risks (ESG considerations in customer choices)
Opportunities
  • Resource efficiency (material recycling and reuse)
  • Use of renewable energy
  • Development of green products/services

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD, UN SDGs, AA1000APS

Certifications: ISO 14001, ISO 45001, ISO 14064-1, ISO 22301, ISO 27001, ISO 27017, ISO 14067

Third-party Assurance: Bureau Veritas Certification Holding S.A.S. (BVC)

UN Sustainable Development Goals

  • SDG 12
  • SDG 13
  • SDG 17
  • SDG 10
  • SDG 4
  • SDG 8
  • SDG 5
  • SDG 6
  • SDG 14

Initiatives aligned with SDGs detailed throughout the report

Sustainable Products & Innovation

  • Products using PCR plastic materials
  • Energy-efficient products (NOVA220X series)

Awards & Recognition

  • TSAA Taiwan Sustainability Action Award 2023
  • TCSA Corporate Sustainability Report Award Silver Award
  • EcoVadis Bronze Metal 2023