Climate Change Data

GMI Technology Inc.

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Energy Consumption:145,267 MWh/year (FY2021)

ESG Focus Areas

  • Environmental Protection
  • Employee Well-being
  • Ethical Corporate Management

Environmental Achievements

  • Office lighting completely replaced with LED energy-saving lamps, resulting in electricity consumption reduction of 49,613 kWh (approximately 25.46%) from FY2020 to FY2021.
  • Implementation of waste separation, recycling, and reduction measures.

Social Achievements

  • Established employee work rules and management practices to protect employee rights.
  • Implemented various salary and benefit measures, providing market-competitive benefits.
  • Provided a safe and healthy working environment, including regular health checks and a smoke-free environment.
  • Implemented a career development training program for employees.
  • Established a product contact window and email address on the company website, as well as a stakeholder area for customer inquiries, complaints, and suggestions.
  • Donation of protective clothing and masks to Taipei City Hospital.

Governance Achievements

  • Established the "Code of Conduct for Ethical Management", posted on the company's internal/external website and the Market Observation Post System.
  • Established the "Code of Ethics for Employees", prohibiting unethical conduct.
  • Established the "Rules for Internal and External Reporting of Illegal and Unethical Conduct of the Company".

Climate Goals & Targets

Long-term Goals:
  • Be the best provider of information technology, consumer electronics, communication products and other high-tech "product application solutions" in the Asia Pacific and Greater China regions.
Medium-term Goals:
  • Complete the marketing service network in the Asia-Pacific region.
  • Develop products with high added value and in line with market trends.
Short-term Goals:
  • Strengthen product application development capability.
  • Provide complete supply of master parts for application products.
  • Strengthen the Company's operation and operation management system.

Environmental Challenges

  • Global COVID-19 pandemic and the formation of regional trading blocs.
  • Persistent material shortages.
  • Global port congestion.
  • Increase in the cost of electronic components and cancelled orders.
  • Post-pandemic era and inflation leading to structural changes in demand.
Mitigation Strategies
  • Prudent management of expenses.
  • Conservative management approach.
  • Actively exploring markets outside the Greater China region.
  • Developing new applications and markets related to network communications.
  • Strengthening the supply chain and the development of applications related to rising demand.
  • Enhancing integrated functions on the existing information system data.
  • Establishing the integration management of BI inventory system management and financial information.
  • Launching OKR project execution tracking system/KPI performance assessment system.
  • Strengthening the integration of customer information services.
  • Strengthening the management of the current online sign-off system.
  • Strengthening the interaction between central warehousing and logistics and customer's temporary storage.
  • Strengthening the monitoring and control of slow-moving inventory surplus materials.
  • Building a company culture, recruiting professionals, strengthening internal training, and improving work efficiency.
  • Strengthening the integration of financial information and inbound/outbound shipments coordination.
  • Strengthening the risk management of customer/factory credit and accounts receivable.
  • Introducing the management concept of ROWC.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmental protection
  • Employee welfare
  • Ethical corporate management
  • Corporate governance

Environmental Achievements

  • Office lighting completely replaced with LED energy-saving lamps

Social Achievements

  • Participated in the "Long-term Campus Mental Health Program" of National Chengchi University and donated NT$1 million
  • Purchases mooncakes from charitable organizations for the mentally disabled

Governance Achievements

  • Established a Sustainable Development Committee
  • Appointed a Chief Corporate Governance Officer
  • Regularly evaluates the independence of the attesting CPAs
  • Regulations restrict directors from trading their shares during the closed book period

Climate Goals & Targets

Long-term Goals:
  • To be the best provider of information technology, consumer electronics, communication products and other high-tech "product application solutions" in the Asia Pacific and Greater China regions
Short-term Goals:
  • Increase market share in Mainland China communications equipment market by 10%
  • Increase new projects and new customers in the electric vehicle market by 10%
  • Increase new projects and new customers in the NB/PCs/servers related computer peripheral application market by 10%
  • Increase new projects in WiFi 6/VDSL/XPON by 20%
  • Increase the number of new customers in the Indian market by 10 to 20 active customers
  • Increase the gross margin of high-end TWS headphones by 5%

Environmental Challenges

  • High inventories in the electronic components sector
  • Uncertain demand in the electronic components sector
  • Intense competition in the telecommunications equipment tender market
  • Changes in trade relations between countries
Mitigation Strategies
  • Minimize inventory levels
  • Ensure the transparency of the supply chain
  • Strengthen risk management
  • Ensure quality and delivery time
  • Improve the flexibility of stock preparation and shipment
  • Establish an effective quality control mechanism with suppliers
  • Establish solid relationships with customers
  • Keep up with the pace of technology innovation

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO9001

Third-party Assurance: KPMG Taiwan