Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social inclusiveness
• Governance

Environmental Achievements

• Hsinchu Plant purchased 1,000,000kWh of green power in 2016 (third highest among high-tech industries)
• Yangzhou Plant achieved a 79% waste recovery rate in 2016
• Yangzhou Plant generated over 2.14 million kWh of power with solar energy in 2016 (10.42% of total power consumption)
• Hsinchu Plant passed ISO 50001 Energy Management System (EnMS) certification
• Yangzhou Plant implemented a water conservation plan, reclaiming 54,000 tons of RO concentrated water and 14,000 tons of spilled ultrapure water annually

Social Achievements

• Donated NT$2 million to Tainan City Government after the 2016 Taiwan earthquake
• Launched employee donation campaign for post-disaster reconstruction in Taitung after Typhoon Nepartak
• Yangzhou Plant and employees supported the Maitian Project, donating to purchase schooling materials and invest in multimedia classroom construction
• USA Plant employees established the Ad Hoc Philanthropic Committee (AHPC), recruiting materials equivalent to US$56,199 (approx. NT$1.7 million) to help local vulnerable groups
• Yangzhou Plant employee turnover rate dropped by about 50% after implementing the “Wage Reform Program”
• E Ink University (USA Plant) ranked fourth top enterprise university in the USA in 2016

Governance Achievements

• Established a CSR Committee in March 2016
• Ranked in the top 20% of the Corporate Governance Evaluation for three consecutive years
• Awarded the 25th Outstanding Internal Auditor Award

Climate Goals & Targets

Environmental Challenges

• Supply risk from concentration of supply
• Production-sale imbalance
• Information system anomalies
• Confidential information leakage
• Disaster risk
• GHG emissions

Mitigation Strategies

• Established “Business Continuity Management Regulations”
• Weekly raw material stock checks and aggressive cultivation of supply sources
• Purchase order estimation and dynamic production plan adjustments
• Standardization of information system operating procedures and strengthened disaster prevention and information security
• Standard operating procedures, employee education and training, hardware protection, and periodic inspections
• Plant facility updates, operation and management optimization, chemical use reduction, and air-conditioning and lighting control

Supply Chain Management

Supplier Audits: Over five suppliers audited monthly (Taiwan); More than three suppliers visited monthly (Yangzhou)

Responsible Procurement

• Compliance with RoHS, SONY SS-00259, conflict mineral requirements
• ISO 14001 certification for new suppliers
• On-site inspections

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (Core disclosure principle)

Certifications: ISO 14001, OHSAS 18001, ISO 50001 (Hsinchu Plant)

Third-party Assurance: Deloitte Taiwan

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

E Ink's products and initiatives contribute to these goals through energy efficiency, sustainable materials, and reduced environmental impact.

Sustainable Products & Innovation

• ePaper displays (EPD)
• Advanced Color ePaper (ACeP)
• E Ink Spectra™ tri-color EPD
• E Ink Mobius™ flexible EPD
• E Ink Prism™ color programmable EPD
• Frontlight display and touch EPD technologies
• Wireless power transfer (WPT) EPD technology

Awards & Recognition

• Taiwan Excellence Award (E Ink Spectra™)
• SEGD Global Design Award (E Ink Prism)
• CES Best of Innovations Award (Joan Meeting Room Assistant)
• Perspective Enterprise Award (Green Power Appreciation Award)
• Best in Show award at the 2016 SID (ACeP)
• Best of NeoCon award (Wovin Wall)
• 16th Outstanding Photonics Product Award (E Ink Triton™)
• 17th Outstanding Photonics Product Award (E Ink Spectra™)
• Outstanding Technology Award (wireless EPD)
• 25th Outstanding Internal Auditor Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total energy consumption by 17.6% compared to the previous year.
• Reduced total GHG emissions by 22.6% compared to the previous year.
• Purchased green power for three consecutive years (2015-2017), with a 16% increase in 2017.
• Purchased 184 RECs in 2017, representing 41% of the total transaction volume.
• Yangzhou Plant's solar system generated 5.48 GWh cumulatively.
• 2017 energy conservation plan saved 6.77 GWh of electricity.
• E Ink ePaper ESLs and tags replaced traditional labels, saving up to 125,000 trees.

Social Achievements

• Launched the 'e-Reader for Future' program, donating 350 eReaders and 35,000 e-books to 16 elementary schools in Taiwan, resulting in an SROI of 2.63.
• Yangzhou Plant donated approximately NT$500,000 and 100 eReaders with 500 books to remote elementary schools in mainland China.
• E Ink USA's AHPC raised funds and supplies of approximately NT$1.5 million to support local communities.
• Increased employee welfare fund contribution from 0.07% to 0.15% of total monthly revenue.
• All proposals made at employee communication meetings were resolved.
• Accumulative zero work-related injury hours: 5,133,147 at Hsinchu Plant and 333,918 at Linkou Plant.

Governance Achievements

• Completed ISO 14001 version update for plants in Taiwan.
• Board of Directors has nine seats, including three independent directors and one female director.
• 89% board meeting attendance in 2017.
• No corruption cases reported in 2017.

Climate Goals & Targets

Environmental Challenges

• Supply risk from supplier capacity issues, plant accidents, or natural disasters.
• Production-sales imbalances leading to increased stock costs.
• Foreign exchange risk due to export trade in USD.
• Interest rate rise affecting long-term and short-term loans.
• Credit risk from customer credit limits.
• Potential fraud or untimely disclosure of financial status from overseas affiliates.
• Ineffective fund dispatch or utilization among group members.

Mitigation Strategies

• Business Continuity Management Regulations established.
• Weekly raw material stock checks and alternative sourcing strategies.
• Production-sales simulations to adjust production plans.
• Exchange rate monitoring, capital utilization efficiency enhancement, hedging strategies.
• Customer credit limit assessment based on credit regulations and customer financial status.
• Periodic financial structure analysis of group members and warning mechanisms.
• Real-time monitoring of financial assets to enhance capital dispatch and utilization efficiency.

Supply Chain Management

Supplier Audits: 16 in 2017

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Conflict minerals reporting
• RoHS compliance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (Core option)

Certifications: ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Deloitte & Touche (Limited Assurance)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 3 (Good Health and Well-being)
• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives such as the 'e-Reader for Future' program, green power procurement, and GHG emission reduction contribute to these goals.

Sustainable Products & Innovation

• ePaper displays (ESL, eNote, signage, wearables)
• Smart packaging solutions

Awards & Recognition

• Gold prize at the 10th Taiwan Corporate Sustainability Awards 2017
• Taiwan Excellence Gold Quality Award (32-inch color EPD)
• 2017 Gold Panel Awards (6.1-inch rollable wearable EPD)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Social Responsibility
• Stakeholder Engagement

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Corporate social responsibility clauses in contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Inclusion
• Corporate Governance

Environmental Achievements

• Reduced CO2e emissions by 2.37 million metric tons in the last five years by replacing single-use paper with ePaper products.
• Subscribed to 1,917 renewable energy certificates (as of April 2021).
• Energy consumption of the Linkou plant was 36% lower than the previous year.
• Emission intensity of the Linkou plant was 42% lower than the previous year.
• Overall waste recovery rate reached 37.81%.

Social Achievements

• Donated epidemic prevention and medical supplies globally.
• Donated four positive pressure rapid test kiosks to Taiwanese medical institutions.
• Launched the "eRead for the Future" eBook reader mobile library project.
• Average customer satisfaction score was 89.8.
• Total value of investment in social inclusion in 2020 was NT$6,950,966.

Governance Achievements

• Ranked in the top 6-20% of OTC-listed companies in corporate governance evaluation.
• Selected as one of the top 10 constituent stocks of the TIP Customized TPEx ESG IT Elite Total Return Index.
• Won the TCSA 2020 Corporate Sustainability Report Awards - Gold Award.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global economy and supply chain.
• Shortage of medical and protective supplies.
• Supply chain disruptions due to the pandemic.
• Material shortages, labor shortages, and shipping difficulties.

Mitigation Strategies

• Issued an epidemic prevention announcement and established an epidemic prevention working team.
• Implemented six categories of epidemic prevention measures.
• Acquired epidemic prevention resources through the global network.
• Donated epidemic prevention supplies worldwide.
• Activated employees to work by shifts and from home.
• Implemented online and written application reviews for supplier evaluations.

Supply Chain Management

Supplier Audits: 11 suppliers audited for social responsibility; average score of 82.22.

Responsible Procurement

• Supplier audit and visit
• Quality review meeting
• Supplier guidance and audit
• Procurement contracts
• Industrial safety training
• Clean Transaction Commitment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)
• Disruption of day-to-day operation
• Disruption of supply chain

Transition Risks

• Changes in renewable energy regulations
• Carbon pricing
• Uncertainty in market signals

Opportunities

• Growth potential for low-carbon products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 14064-1, ISO 50001, ISO 45001

Third-party Assurance: Deloitte & Touche (limited assurance)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

E Ink's products and initiatives contribute to these goals through reduced paper consumption, renewable energy use, sustainable product development, and support for education.

Sustainable Products & Innovation

• ePaper products (eReaders, eNotes, ESLs, eSignage)

Awards & Recognition

• TCSA 2020 Corporate Sustainability Report Awards - Gold Award
• Taiwan Corporate Sustainability Performance Award
• Single Performance Award - Social Inclusion
• Single Performance Award - Innovation and Growth Award
• 29th Taiwan Excellence Awards - Gold Award (Advanced Color ePaper Display System)
• Hsinchu Science Park Innovative Product Award (E Ink MeeNote)
• Popular Science: The 100 greatest innovations of 2020 (E Ink Kaleido™)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Product Sustainability
• Green Production
• Sustainable Supply Chain
• Enterprise Care
• Social Engagement

Environmental Achievements

• Achieved 20% renewable energy usage (RE20) goal, surpassing the initial target of RE10.
• 13% reduction in greenhouse gas emissions (Scope 1 and Scope 2).
• 43% decrease in revenue intensity compared to the previous year.
• 39% decrease in water intensity compared to the previous year.
• Achieved carbon neutrality for 1,500 solar-powered ePaper bus stop signs in Puxi District, Shanghai.

Social Achievements

• Donated $150,000 to UNICEF's Ukraine relief project.
• Implemented the "eRead for the Future" project, benefiting 40,000 students.
• 73.4% overall employee satisfaction rate.

Governance Achievements

• Established a "Sustainability Development Committee" at the board level.
• Completed external board performance evaluations.
• Integrated sustainability and climate change metrics into senior managers' compensation.

Climate Goals & Targets

Environmental Challenges

• Global economic challenges due to geopolitical uncertainties, inflation, and climate disasters.
• Material procurement price increases.
• Potential material shortages due to concentrated procurement sources.
• Risks associated with climate change (extreme weather, transition risks).
• Cyberattacks and data breaches.

Mitigation Strategies

• Close collaboration with customers and cost control measures.
• Monitoring external changes and timely adjustments to production plans.
• Expanding ePaper ecosystem partnerships and diversifying customer portfolio.
• Continuous investment in R&D and technology development.
• Diversified supply chain system and alternative sourcing strategies.
• Disaster response plans and emergency response teams.
• Implementation of ISO/IEC 27001 Information Security Management System.
• Internal carbon pricing mechanism.

Supply Chain Management

Supplier Audits: Monthly audits and visits to 4 suppliers

Responsible Procurement

• E Ink Supplier Code of Conduct
• Clean Transaction Commitment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)
• Flooding of facilities

Transition Risks

• Carbon pricing or carbon taxes
• Requirements for higher proportion of renewable energy usage
• Costs associated with transitioning to low-carbon technologies

Opportunities

• Resource efficiency
• Renewable energy sources
• Market demand for low-carbon products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, 2021 edition, SASB Standards, TCFD

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 14064-1:2018, ISO 14067:2018, ISO 50001:2018, ISO/IEC 27001

Third-party Assurance: BSI Taiwan (AA1000AS v3 Type 2 Assurance)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 7 (Affordable and Clean Energy)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

E Ink's ePaper products and initiatives contribute to these goals through energy efficiency, reduced carbon emissions, and promotion of sustainable practices.

Sustainable Products & Innovation

• E Ink Gallery™ 3
• E Ink Spectra™ 3100 Plus
• E Ink Kaleido™ 3
• Foldable color ePaper

Awards & Recognition

• Dow Jones Sustainability Indices (DJSI) World and DJSI Emerging Markets
• S&P Global Sustainability Yearbook Top 10% and Best Progress Award
• Taiwan Excellence Gold Award
• Asia Responsible Enterprise Awards