WT Microelectronics Co., Ltd.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
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
- 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.
- 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.
- 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
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
- 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.
- 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%.
- 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