Climate Change Data

WT Microelectronics Co., Ltd.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:2,794.05 tonnes CO2e
Scope 1 Emissions:218.82 tonnes CO2e
Scope 2 Emissions:2,362.90 tonnes CO2e
Scope 3 Emissions:212.33 tonnes CO2e
Renewable Energy Share:0%
Total Energy Consumption:16,271 GJ
Water Consumption:12.95 ML
Waste Generated:150.5 metric tons
Carbon Intensity:0.0398 tonnes CO2e/m²

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Corporate Governance
  • Sustainable Supply Chain
  • Economic Impact
  • Information Security
  • Ethical Corporate Management
  • Employee Well-being

Environmental Achievements

  • Reduced Scopes 1 and 2 GHG emission intensity by 27.18% compared to 2018.
  • Reduced the proportion of new cartons used in shipments to 23.12%, a 13.15% decrease from 2019.
  • Spent NTD 15.66 million on green procurement, a 5% increase from the previous year.
  • Completed independent GHG inventory verification for all operating bases in Taiwan and new logistics centers in Hong Kong and Singapore.
  • Voluntarily completed GHG inventories for operating bases in China, Hong Kong, South Korea, and other locations.

Social Achievements

  • Increased employee headcount by 38.34% to 3,547.
  • 30% of executives and 43% of directors are female.
  • Average salary of full-time non-supervisory employees increased for four consecutive years, reaching NTD 1,425,000 in 2022.
  • Zero disabling incidents throughout the year.
  • 100% of new suppliers screened for social policy and code of conduct compliance.
  • Launched the "Want Talent" elite training program.
  • Organized two beach cleanups with 137 participants removing 1,484.2 kg of marine debris.

Governance Achievements

  • Ranked among the top 5% in the Taiwan Corporate Governance Evaluation for three consecutive years.
  • Obtained ISO 27001 certification for Information Security Management System.
  • 100% in-person attendance rate for Audit Committee members.
  • 98.9% in-person attendance rate for directors at Board meetings.
  • Implemented a whistleblower mechanism with five reports received and handled in 2022.

Climate Goals & Targets

Long-term Goals:
  • Achieve 100% asset insurance rate; achieve 100% green energy-saving appliances; achieve 20% or more customers involved in prospective economic activities; complete GHG inventory and verification for all operating bases; achieve net-zero carbon emissions by 2050.
Medium-term Goals:
  • Increase ESG credit line proportion to 10%; link mid-term financing to ESG indicators; achieve 20% forward-looking economic activities; offer systematic solutions for green energy, energy storage, and low-carbon transportation.
Short-term Goals:
  • Reduce water consumption; implement internal carbon pricing; increase asset insurance rate to 20%; achieve 50% energy-saving lights and green-labeled appliances.

Environmental Challenges

  • Macroeconomic uncertainties and inventory adjustments in the semiconductor sector.
  • Supply chain disruptions due to extreme weather events.
  • Changes in government policies and legislation.
  • Changes in technologies and industry trends.
  • Concentration of purchases or sales.
  • Impact of the COVID-19 pandemic on the supply chain.
Mitigation Strategies
  • Focus on high-growth products and application domains.
  • Digital optimization to increase efficiency and reduce operating costs.
  • Strengthening financial structure and implementing sound financial strategy.
  • Monitoring market and legislative changes and consulting experts.
  • Developing high-value-added products and diversifying the product portfolio.
  • Maintaining good relations with existing customers and suppliers and actively seeking new ones.
  • Establishing a cross-regional operation setup to cope with supply chain transfer and decentralization.
  • Investing in information security software and hardware and strengthening continuous operation capabilities.

Supply Chain Management

Supplier Audits: 85 suppliers assessed in 2022, 100% pass rate.

Responsible Procurement
  • Supplier Code of Conduct requiring compliance with labor rights, health and safety, ethics, and management systems.
  • Annual supplier assessment with review of deficiencies and improvement plans.
  • Quarterly follow-up and assessment for suppliers failing to meet requirements.
  • Use of procurement strategies to manage unqualified or low-rated suppliers.
  • 100% of suppliers enrolled in 2022 signed and returned the Social Responsibility Commitment Letter.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity and frequency of extreme weather events.
  • Extremely high temperatures.
  • Supply chain transportation affected by extreme weather events.
Transition Risks
  • Transition pressure on vendors and customers.
Opportunities
  • Reduced capital costs.
  • New/expanded low-carbon products or services.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2021, SASB Standards for Consumer Goods - Multiline and Specialty Retailers & Distributors, TCFD Framework

Certifications: ISO 14001 (Taiwan, Hong Kong, Shenzhen Logistics Centers), ISO/IEC 27001:2013 and CNS 27001:2014 (Taiwan Headquarters)

Third-party Assurance: British Standards Institution Taiwan Branch (BSI Taiwan)

UN Sustainable Development Goals

  • SDG 3: Good Health and Well-being
  • SDG 4: Quality Education
  • SDG 5: Gender Equality
  • SDG 8: Decent Work and Economic Growth
  • SDG 13: Climate Action
  • SDG 16: Peace, Justice and Strong Institutions

WT's initiatives contribute to these goals through employee well-being programs, talent development initiatives, gender equality measures, economic contributions, climate change mitigation efforts, and ethical corporate governance.

Sustainable Products & Innovation

  • Highly efficient green semiconductor components.
  • Software and hardware systematic solutions for electric vehicles.

Awards & Recognition

  • Green Consumption Outstanding Enterprise by the New Taipei City Government
  • TCSA Taiwan Corporate Sustainability Awards 2022 Bronze Award
  • NXP's Outstanding distribution partner 2022
  • ST's Best Performance (Gold Award) 2022
  • MPS's Outstanding Progressive Agent 2022
  • MTK's Best Value Added Reseller 2022

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:3152.10 tonnes CO2e (location-based) / 3147.15 tonnes CO2e (market-based)
Scope 1 Emissions:315.60 tonnes CO2e
Scope 2 Emissions:2,463.10 tonnes CO2e
Scope 3 Emissions:373.40 tonnes CO2e
Renewable Energy Share:0.41% (Taiwan)
Total Energy Consumption:18,429.11 GJ (electricity)
Water Consumption:21.32 million liters
Waste Generated:132.56 tons
Carbon Intensity:0.0041 tonnes CO2e/NTD million in 2023

ESG Focus Areas

  • Environmental Performance
  • Social Performance
  • Governance Performance

Environmental Achievements

  • Reduced scopes 1 and 2 GHG emissions by 3.49% relative to 2022.
  • 100% completion of GHG inventory across all operating bases in 2023.
  • 100% localization in general procurement in Taiwan and 99.9% in China.
  • Installation of a rooftop solar power generation system in the Shanghai office.

Social Achievements

  • Zero workplace disabling injuries recorded.
  • 100% of new suppliers screened in terms of social policy and code of conduct.
  • Launched WT Education Foundation's Shining Hope and One-on-one Online Reading programs.
  • Employee turnover rate of 14.93%.

Governance Achievements

  • Ranked in the top 5% of listed companies by Taiwan's Corporate Governance Evaluation for the fourth consecutive year.
  • Official establishment of the Sustainable Development Committee and Nominating Committee.
  • Approved amendments to the "Regulations Governing Compensation Payment of Managerial Officers" with environmental and social indicators added as remuneration indicators.
  • Approved the 2050 net zero commitment and path planning.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2050.
  • Revenue contribution from Taiwan Sustainable Taxonomy activities >20% by 2030.
  • Introduction of system-level solutions by 2030, including green energy, energy storage.
Medium-term Goals:
  • Reduce scopes 1 and 2 GHG emissions to 50% of the 2022 level by 2035.
  • Revenue contribution from Taiwan Sustainable Taxonomy activities >15% by 2026.
  • RBA audit pass rate among vendors making up 95% of procurement amount ≥ 90%.
Short-term Goals:
  • Reduce GHG emissions by 3-5% annually starting from 2024.
  • Revenue contribution from Taiwan Sustainable Taxonomy activities >12% by 2024.
  • RBA audit pass rate among vendors making up 95% of procurement amount ≥ 80%.

Environmental Challenges

  • Global risk uncertainties increased, including the impact of the COVID-19 pandemic, the Russia-Ukraine war, geopolitical economic conflicts, global high inflation, and extreme weather events.
  • Accelerating uncertainties due to economic, environmental, geopolitical, social, and technological challenges.
  • Lack of access to new technologies and products developed with clean technologies.
  • Potential for integrity breaches among senior executives and employees.
Mitigation Strategies
  • Expanding global service operations and achieving geographic diversification.
  • Strengthening application engineering expertise and offering excellent logistics management services.
  • Increasing the contribution to operating income from Taiwan Sustainable Taxonomy activities.
  • Investing NT$755 million in R&D to assist customers in developing high-efficiency, low-energy products.
  • Establishing a corporate culture of honest management and implementing information security policies.
  • Regularly reviewing information security policies and conducting incident response exercises.

Supply Chain Management

Supplier Audits: 66.67% of vendors making up 95% of procurement amounts passed RBA audits.

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier Corporate Social Responsibility Commitment Letter
  • Online Supplier Self-Assessment Form
  • Green procurement policies

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity and frequency of extreme weather events
  • Extremely high temperatures
Transition Risks
  • Supply chain transportation affected by extreme weather events
Opportunities
  • Reduced capital cost
  • Developed/expanded low-carbon products or services

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, GRI Standards 2021, AA1000 Accountability Principles, AA1000AP-2018, SASB Standards for Multiline and Specialty Retailers & Distributors, TCFD

Certifications: ISO 14001, ISO/IEC 27001, CNS 27001

Third-party Assurance: British Standards Institution Taiwan Branch (BSI Taiwan)

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 16

Initiatives contribute to these goals through various programs and policies.

Sustainable Products & Innovation

  • AI-powered microcontrollers (MCUs) and microprocessors (MPUs)
  • High-bandwidth memory (HBM) and high-efficiency power management products
  • Energy-efficient power stage components
  • High-performance, low-impedance silicon carbide (SiC) components

Awards & Recognition

  • Green Consumption Outstanding Enterprise by the New Taipei City Government
  • Private Green Procurement Performance Excellence Award by the Environmental Protection
  • Best Agency 2023 by GIGABYTE
  • Constituent of TIP Taiwan Environmental Sustainability and High Dividend Index