Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Kunshan Plant: Reduced power consumption by 10% (2015 baseline), greenhouse gas emissions by 30% (2015 baseline). Huangshi Plant: Power saving rate of +87% and GHG reduction of +122% (2018 baseline), although this is partly due to revenue growth. Electricity intensity per unit of revenue decreased by 18.81% (Kunshan) and 14.54% (Huangshi) compared to 2020. Kunshan Plant achieved a 96.07% waste recycling rate; Huangshi Plant achieved a 96.73% waste recycling rate. Huangshi Plant was announced as a national green factory.
• Reduced fuel intensity by 23.38% (Kunshan) and 19.80% (Huangshi) compared to 2020.
• Kunshan Plant: Water consumption reduced by 10.6% compared to 2015, water consumption per unit of revenue reduced by 17.27% compared to 2015. Water recycling rate of 20.8%. Huangshi Plant: Water reuse rate reached 35.84%, recycled 98,300 tons of discharge water and 3,500 tons of air-conditioning condensate water. Water consumption per unit of revenue decreased by 11.24% compared to 2020.

Social Achievements

• Increased proportion of female supervisors from 31% to 32%. One female independent director. Average training hours for employees reached 19 (Taoyuan), 19 (Kunshan), and 18 (Huangshi) hours. Huangshi Plant had 40% of its employees with a college degree or above. 45 employees graduated from further education.
• Kunshan Plant: 3 pregnant women over 7 months received maternity leave benefits. Huangshi Plant: 1 pregnant woman over 7 months received maternity leave benefits.
• Total reported complaints decreased by 7% compared to 2020 (14 complaints in 2021). No complaints received via CEO mailbox or whistleblower hotline.

Governance Achievements

• Established an ESG sustainability committee. Linked compensation of directors and senior managers to overall environmental and social performance. Improved board diversity with more young people's voices included in decision-making. Prepared ESG information in accordance with SASB standards. Ranked among the top 5% of listed companies in corporate governance for five consecutive years.

Climate Goals & Targets

Environmental Challenges

• Climate change (physical and transition risks), including extreme weather events and stricter environmental regulations.
• Supply chain disruptions (although none occurred in 2021 due to climate change).

Mitigation Strategies

• Completed assessment of climate scenarios and risk impact ranges according to the TCFD framework. Developed alternative sourcing strategies for raw materials. Implemented energy-saving plans, purchased green power, and built a photovoltaic power generation project. Established an energy emergency response plan. Implemented water-saving incentive energy management and control measures. Established a risk assessment team to identify and evaluate workplace risks.

Supply Chain Management

Responsible Procurement

• Require suppliers to sign commitments to abide by RBA code of conduct, integrity, and not using conflict minerals. Evaluate suppliers' fulfillment of corporate social responsibility in economic, environmental, and social aspects.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rainfall hazards affecting suppliers

Transition Risks

• Carbon fees/taxes
• Changes in market demand/industry innovative technologies

Opportunities

• Demand for green energy-related products
• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: ISO 45001, ISO 50001

UN Sustainable Development Goals

• Goal 5 (Gender Equality)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 16 (Peace, Justice and Strong Institutions)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 17 (Partnerships for the Goals)

The report details how Dynamic's initiatives contribute to these goals.

Awards & Recognition

• National Green Factory (Huangshi Plant)
• Huangshi Intelligent Transformation Demonstration Enterprise

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Circular Economy
• Supply Chain Sustainability
• Employee Well-being
• Governance

Environmental Achievements

• Achieved solar power generation of 195,715 kWh, equivalent to a reduction of 102.9 tons of CO2 emissions (22.8% of residential electricity demand)
• Obtained 42 million kWh of green electricity, equivalent to a reduction of 30,046.8 tons of CO2 emissions (18.6% of annual total electricity consumption)
• Huangshi Plant received UL2799 Zero Waste to Landfill Platinum certification
• Reduced copper-containing waste liquid transported for external disposal by 13,591.5 tons
• Waste recycling rate of 95.25% at Kunshan Plant in 2023
• Waste output intensity per million revenue in 2023 was 12.7% lower than in 2020

Social Achievements

• Rated as an industry leader in high-quality development
• Certified as a Healthy Enterprise and a Level 2 Enterprise in Work Safety Standardization
• Rated as a caring unit for “sharing the love of books”
• Kunshan Plant received RBA Silver certification
• Awarded Continental Motors 2023 Supply Chain Excellence Award
• Kunshan Plant certified as an A-level Labor Guarantee Credit Unit
• Average training hours for Taoyuan, Kunshan, and Huangshi plants reached 31.1, 42.9, and 25.8 hours respectively

Governance Achievements

• Established an “Unreasonable Mailbox” and a “CEO Mailbox” for complaints
• Established a dedicated hotline for reporting
• Board of Directors includes four independent directors (57%), one of whom is female
• 100% director attendance at 9 Board meetings in 2023
• External performance evaluation of the Board of Directors rated as “Advanced”

Climate Goals & Targets

Environmental Challenges

• Extreme climate phenomena impacting daily operations
• Supply chain disruptions due to climate events
• Biodiversity loss and natural resource shortages
• Stringent environmental regulations in Taiwan and China
• Potential financial impacts from carbon charges
• Incomplete or incorrect data from some suppliers regarding carbon emissions

Mitigation Strategies

• Collaborating with supply chain and customers on biodegradable materials
• Cooperating with suppliers to promote carbon footprint inventory and develop carbon reduction technologies
• Assessing nature-related risks and opportunities according to the TNFD framework
• Applying AI and green technology to improve operational efficiency and achieve environmental protection and social responsibility goals
• Developing an in-house carbon footprint tracking platform
• Implementing low-carbon supply chain management
• Actively installing renewable energy equipment
• Prioritizing 100% procurement of raw materials with low carbon emissions
• Developing corresponding measures for risks related to geopolitical events and biodiversity

Supply Chain Management

Supplier Audits: Annual audits of 26 key strategic partners

Responsible Procurement

• Supplier code of conduct
• ESG performance as a supplier selection criterion
• Conflict mineral policy and commitment
• RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Supply chain disruptions

Transition Risks

• Carbon charges
• Stringent environmental regulations

Opportunities

• Development of energy-efficient products
• Growth in demand for electric vehicles

Reporting Standards

Frameworks Used: TCFD, SASB, TNFD, UNGC, RBA

Certifications: ISO 50001, ISO 14001, ISO 27001:2022, UL2799 Zero Waste to Landfill Platinum, IECQ QC080000 (Kunshan & Huangshi Plants), IATF 16949 (Kunshan & Huangshi Plants), ISO 13485 (Kunshan Plant)

Third-party Assurance: EY Business Advisory Services Inc.

UN Sustainable Development Goals

• Goal 5: Gender equality
• 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
• Goal 17: Partnerships for the goals

Dynamic's initiatives contribute to these goals through various actions related to gender equality, renewable energy, sustainable production, climate action, and community engagement.

Sustainable Products & Innovation

• High-speed and low-signal loss products
• Advanced HDI and thin products
• Mini-LED display products
• High-frequency millimeter-wave (mmWave) products
• High heat dissipation products
• Embedded active and passive component products

Awards & Recognition

• PEEP Special Contribution Award from AMD
• Pilot Enterprise for High-Quality Development in the Industry (Huangshi Plant)
• Hubei Enterprise Technology Center (Huangshi Plant)
• Second-level enterprise of safety production standardization (Huangshi Plant)
• Continental Supply Chain Excellence Award (Kunshan Plant)
• LG Electronics Outstanding Supplier Award (Kunshan Plant)