Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Reduced total GHG emissions by around 12.8% despite a more comprehensive reporting scope.
• Reduced water consumption by 24% compared to FY2018.
• Reduced electricity usage by 13%.

Social Achievements

• Provided training courses to over 7,000 employees.
• Organized numerous employee engagement activities.
• Complied with all relevant laws and regulations related to employment and labor practices.
• Maintained a safe working environment with no violations of relevant laws and regulations.

Governance Achievements

• Established a systematic sustainability governance approach and an integrated management system following ISO 5001:2018, ISO 14001:2015, and ISO 45001:2018.
• Complied with all relevant anti-corruption laws and regulations.
• No concluded legal cases regarding corrupt practices were brought against the Group or its employees.

Climate Goals & Targets

Environmental Challenges

• Increase in gasoline consumption leading to higher air pollutant emissions from vehicles.
• Managing social and environmental risks in the supply chain.

Mitigation Strategies

• Implementing policies and measures to regulate vehicle use and encourage employees to reduce their environmental impact.
• Conducting comprehensive background checks and on-site evaluations of potential suppliers.
• Prioritizing suppliers with sound environmental certifications and robust environmental management systems.
• Implementing 'Green Procurement' practices.

Supply Chain Management

Supplier Audits: Annual inspections

Responsible Procurement

• Comprehensive background checks and on-site evaluations of potential suppliers.
• Prioritizing suppliers with sound environmental certifications and robust environmental management systems.
• Requiring suppliers to comply with local laws and regulations and corporate ethics.

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Target 12: Responsible Consumption and Production

Aligning sustainability targets, strategies, and practices with Target 12.

Sustainable Products & Innovation

• Utilizing coffee grounds as a valuable material in products.
• Changing oil-based adhesives to water-based adhesives.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by approximately 7,500 tons through paperless customs clearance services (Aviation Information Inquires system)

Social Achievements

• Launched employee well-being program (EAP) providing psychological counseling services, resulting in 530 hours of counseling and 452 cases in 2019-2020.
• Helped Shenchi County, Shanxi Province eliminate poverty, benefiting more than 14,300 people.

Governance Achievements

• Strengthened compliance management, including the formulation and issuance of Compliance Management Measures and the organization of public-information sessions on the rule of law.
• Maintained stable safety performance with zero production failures at the second level or above and zero information security incidents with social impacts.

Climate Goals & Targets

Environmental Challenges

• Significant impact from the COVID-19 pandemic, resulting in decreased market demand and revenue.
• Difficulty in recovering accounts receivable.
• Shrinking international airline market.

Mitigation Strategies

• Proactively fulfilled social responsibilities and implemented scientific epidemic prevention measures.
• Stabilized business foundation and flexibly adjusted market strategy.
• Strictly controlled costs and implemented quality and efficiency improvements.

Supply Chain Management

Responsible Procurement

• Centralized procurement
• Well-regulated procurement
• IT-enabled procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (HKEX), Guidelines to the Central State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities (SASAC)

Awards & Recognition

• Hong Kong Investor Relations Award
• Best Investor Relations Award
• Most Valuable TMT Stocks Company Award
• Top 100 Chinese Listed Companies Award

Environmental Metrics

ESG Focus Areas

• Low-Carbon Transition
• Governance and Innovation
• Green Manufacturing
• Responsible Supply Chain
• Friendly Workplace
• Common Good

Environmental Achievements

• Reduced GHG emissions per unit area of wafer to 21% lower than the 2015 level.
• Reduced power consumption per unit area of wafer by 30% compared to 2015.
• Reduced water consumption per unit area of wafer by 17.1% compared to 2015.
• Reduced wastewater discharge per unit area of wafer by 23.6% compared to 2015.
• Replaced C3F8 with C4F8, reducing GHG emissions in the supply chain by approximately 15,520 kg CO2e.
• Installed 270kW of solar PV generation system.

Social Achievements

• Donated a contactless COVID-19 testing station to National Taiwan University Hospital Hsinchu Branch.
• Donated pandemic prevention supplies to various social welfare groups.
• Sponsored Junyi Academy’s teacher incubation program in Miaoli.
• Increased employee compensation by 10% starting January 1, 2021.
• Launched various pandemic prevention measures, including office zoning and work from home.
• Employed 56 persons with disabilities, exceeding the government's 4% requirement.
• Achieved a key talent retention rate of 96%.

Governance Achievements

• Established a new functional committee, "Strategy Committee."
• Amended company by-laws to enhance Board of Directors diversity.
• Ranked in the top 5% in the Corporate Governance Evaluation of TWSE- and TPEX-Listed Companies for the eighth consecutive year.
• Participated in the Dow Jones Sustainability Index (DJSI) evaluation for the first time and was selected as a constituent of DJSI-World.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events.
• Intensified extreme weather events impacting FAB operations.
• Changes in consumer behavior demanding low-carbon products.
• Impact on company image due to climate change concerns.
• Increasing stakeholder concern for low-carbon products and services.
• Global fuel price increases.
• Costs of innovative technology production.
• Stricter policy/regulatory requirements related to greenhouse gas emissions and renewable energy.

Mitigation Strategies

• Developed alternative sourcing strategies and implemented supplier audit mechanisms.
• Enhanced production line resilience to natural disasters and implemented water-saving measures.
• Developed low-carbon design products and enhanced product efficiency.
• Enhanced corporate reputation through green management and certifications.
• Invested in renewable energy projects and implemented GHG emissions management measures.
• Implemented improvement measures to reduce carbon emissions.

Supply Chain Management

Supplier Audits: 39 onsite audits in 2019-2021; 100% of tier 1 suppliers audited in 2021.

Responsible Procurement

• VIS Supplier Code of Conduct
• Sustainability Self-Assessment Questionnaire
• Hazardous substance affidavit
• Conflict minerals due diligence investigations
• Green procurement regulations
• RoHS pledge

Climate-Related Risks & Opportunities

Physical Risks

• Supply chain disruption
• Intensified extreme weather events
• Water shortage
• Flooding

Transition Risks

• Increased costs of carbon tax and grey electricity
• Lowered cost of green energy
• Changes in consumer behavior
• Impact on company image
• Increasing stakeholder concern for low-carbon products and services
• Global fuel price increase
• Costs of innovative technology production
• Policy/regulatory requirements

Opportunities

• Enhance capability to resist natural disasters
• Enhance corporate reputation
• Promote low-carbon green production
• Participate in renewable energy plans and carbon trading market
• New opportunity for technological innovation

Reporting Standards

Frameworks Used: GRI, AA1000SES, TCFD

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 27001, IECQ QC 080000, IATF 16949

Third-party Assurance: SGS

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

VIS's corporate sustainability actions comply with 16 UN SDGs, as detailed in the report.

Sustainable Products & Innovation

• Power supply management ICs
• Display driver ICs
• GaN semiconductors

Awards & Recognition

• Selected as Constituent of S&P Global DJSI – World
• TIP Taiwan Sustainability Index
• TCSA Top 50 Sustainable Enterprises: Electronics and IT Manufacturing – Platinum Awards
• TCSA Sustainable Report Award – Platinum
• GCSA Sustainable Report Award – Bronze
• Top 5% honor in the 8th Corporate Governance Evaluation of TWSE- and TPEX-Listed Companies

Environmental Metrics

ESG Focus Areas

• Corporate Governance Duty
• Product Responsibility
• Societal Engagement
• Environmental Stewardship
• Commitment to Employees

Environmental Achievements

• 43,600 m3 water saved from a water conservation project
• 48% hazardous chemical waste reduced
• 80 trees planted by employees to reduce carbon footprint
• 4 environmental targets achieved (out of 12)

Social Achievements

• 9,000+ citizens reached through healthcare and community well-being campaigns
• Sponsorship scheme initiated to support community-based pharmacists pursuing continuing education
• 33,829.67 training hours completed by employees
• Empowered relevant stakeholders to develop employee engagement activities

Governance Achievements

• Four awards and recognitions received
• Implementation of a 4-tier alert level system to respond to COVID-19

Climate Goals & Targets

Environmental Challenges

• Regulatory risk
• Reputational and quality control risk
• COVID-19 pandemic impact

Mitigation Strategies

• Designated Authorised Person and quality control/assurance teams at each facility
• Product liability insurance
• COVID-19 contingency measures (4-tier alert system)

Supply Chain Management

Supplier Audits: 528 raw materials suppliers engaged with

Responsible Procurement

• Supplier quality evaluation
• GMP certification (compulsory for API providers)
• ISO certification

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels

Transition Risks

• Policy and legal changes
• Technology shifts
• Market shifts
• Reputational risks

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 16: Peace, Justice and Strong Institutions

The report details how Jacobson's initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Generic drugs from expiring patents

Awards & Recognition

• Good MPF Employer Award 2021-2022
• Partner Employer Award 2022
• Small and Medium Business Certificate of Appreciation for the Additional Employment of Full-time or Part-time Employees 2022 (x2)
• Outstanding Enterprise Award 2022
• EcoPartner award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Switched to LED lighting extensively across various business premises and increased adoption of solar energy, accounting for 5.75% of total electricity consumption.

Social Achievements

• Maintained a high proportion of employees from the local community; zero incidents of noncompliance with employment legislation.

Governance Achievements

• Maintained a strict zero-tolerance policy for bribery and corruption; zero incidents of noncompliance with laws and regulations or corruption in FY2023; established policies and procedures on monitoring interested person transactions and managing conflicts of interest; whistleblowing channels in place.

Climate Goals & Targets

Environmental Challenges

• China's sluggish domestic economy, international geopolitical conflicts leading to an inflationary and unstable environment, resulting in subdued business outlook.

Mitigation Strategies

• Exploring investment opportunities to better utilize surplus cash reserves; aligning business strategy with national initiatives in the PRC to expand business footprint.

Supply Chain Management

Supplier Audits: Regular intervals across the duration of procurement agreements

Responsible Procurement

• Code of ethics; suppliers assessed before and during procurement agreements for compliance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, TCFD framework

Certifications: ISO 9001:2005, ISO 14001:2015, ISO 45001:2018

Awards & Recognition

• High-Tech Enterprise Certificate (2022)