Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Year-on-year reduction of energy consumption of 95.8 TJ in Langfang, PRC facilities.
• GHG emission reduction by energy-saving initiatives: 25.2 TJ (6,132 tonnes), 5.8 TJ (1,411 tonnes), and 64.8 TJ (15,768 tonnes) from various initiatives.
• Reduction of up to an average of 550 tonnes of wastewater discharge per month using a vacuum distillation system.
• Reuse of 1,000 tonnes of reusable water per day through reverse osmosis and greywater treatment.
• Reuse of 2,238,835 kilograms of wooden pallets and 226,396 kilograms of plastic pallets instead of disposal.

Social Achievements

• Implemented a comprehensive remuneration policy with annual bonuses, time-based incentives, and other incentive programs.
• Introduced non-monetary rewards (including housing incentives) for employees with exceptional performance.
• Provided insurance coverage and complimentary health checks for employees.
• Invested in automation of manufacturing tasks to improve industrial safety and occupational hygiene.
• Organized various cultural, entertainment, and sports activities for employees.
• Regular volunteer activities such as blood donation, tree planting, and visits to the underprivileged.

Governance Achievements

• Compliance with the Hon Hai Group’s Social and Environmental Responsibility (SER) Code of Conduct.
• Established an anti-corruption team to handle investigations of improper business conduct.
• Established a whistle-blowing policy to protect whistle-blower identities and handle complaints fairly and professionally.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Annual SER risk assessments and continuous on-site audits.

Responsible Procurement

• Compliance with social and environmental responsibility guidelines.
• Implementation of fair competition and transparency principles.
• Sustainable and hazardous materials and product management system with third-party certification.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Human Capital
• Supply Chain Management
• Community Contribution
• Anti-corruption

Environmental Achievements

• Reduced 588,000 tonnes of steam by adopting light steam engines.
• Saved 1,020,000 kWh by replacing obsolete lights with LED light fixtures.
• Reduced 3,970,000 m³ of compressed air usage by procuring energy-efficient air guns.
• Reduced wastewater discharge by an average of 550 m³ per month using a vacuum distillation system.
• Reused 106,400 m³ of greywater.
• Reduced the weight of sludge disposed of in the landfill by 2,540 tonnes.
• Reused 451,620 kg of wooden pallets and 139,000 kg of plastic pallets.

Social Achievements

• Implemented a merit-based remuneration policy with annual bonuses and incentive programs.
• Provided comprehensive training programs, including 4 CCTs training sessions for over 95 employees.
• Implemented a whistle-blowing system for reporting child and forced labor cases.
• Invested in improving the infrastructure of manufacturing plants and dormitory environment for employees.
• Provided recreational facilities to promote work-life balance.

Governance Achievements

• Established anti-corruption and whistle-blowing policies.
• Implemented a “Law Identification Procedure” for internal evaluation and audit of compliance with relevant environmental and labor laws and regulations.
• No concluded legal cases regarding corrupt practices brought against the Group or its employees during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Interruption of manufacturing operations, supply chain, energy resources and logistics due to extreme weather events.
• Potential implementation of climate-related regulation and policy changes.

Mitigation Strategies

• ERM Team identified and evaluated climate-related issues and concluded they were not significant vis-à-vis the Group during the reporting period.

Supply Chain Management

Supplier Audits: Continuous on-site supplier audits and annual SER risk assessments.

Responsible Procurement

• Compliance with the Group’s social and environmental responsibility guidelines and SER Code.
• Prohibition of corruption, fraud, extortion, money-laundering, and discrimination.

Climate-Related Risks & Opportunities

Physical Risks

• Interruption of manufacturing operations, supply chain, energy resources and logistics due to extreme weather events.

Transition Risks

• Potential implementation of climate-related regulation and policy changes.

Reporting Standards

Frameworks Used: HKEX Environmental, Social and Governance Reporting Guide

Certifications: ISO14001, ISO50001, ISO45001, SA8000

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Human Capital
• Supply Chain Management
• Community Contribution
• Anti-corruption

Environmental Achievements

• Reduced energy consumption and GHG emissions through various initiatives (detailed in report)
• Reduced wastewater discharge by an average of 550 m3 per month
• Reused 46,500 m3 of greywater
• Reduced sludge disposed in landfill by 796 tonnes
• Reused 893,668 kg of wooden pallets and 103,860 kg of plastic pallets

Social Achievements

• Implemented a comprehensive and competitive remuneration policy
• Provided annual bonuses, time-based/performance-based incentives, and other incentive programs
• Introduced non-monetary rewards (including housing incentives)
• Provided insurance coverage for employees
• Provided ongoing training on various areas (occupational safety, regulations, technical skills, management skills, and social and environmental responsibility)
• Organized 2 CCTs training sessions for over 72 employees
• Implemented a “safety first” policy with proactive and preventive measures to reduce occupational risks
• Invested in automation of manufacturing tasks to improve industrial safety and occupational hygiene
• Provided recreational facilities for employees (sports stadiums, basketball courts, swimming pools, libraries, parks, gymnasiums, banking, and retail facilities)

Governance Achievements

• Established and maintained an advanced detection and monitoring system for occupational safety
• Implemented control and prevention mechanisms and conducted regular safety inspections to eliminate workplace hazards
• Established whistle-blowing policies and procedures for reporting fraudulent acts, unethical acts, or improper business conduct
• Implemented a “Law Identification Procedure” for internal evaluation and audit of compliance with relevant environmental and labor laws and regulations
• No concluded legal cases regarding corrupt practices brought against the Group or its employees during the reporting period

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Annual CSR risk assessments and continuous on-site audits

Responsible Procurement

• Compliance with Group’s social and environmental responsibility guidelines
• Prohibition of corruption, fraud, extortion, money-laundering, and discrimination
• Adherence to CSR Code and RBA management model

Climate-Related Risks & Opportunities

Physical Risks

• Interruption of manufacturing operations, supply chain, energy resources, and logistics due to extreme weather events

Transition Risks

• Substitution of existing products, services, and/or technologies during transition; increase in capital expenditures and operating costs

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001 (manufacturing plants in PRC, India, and Vietnam), ISO 50001 (certain production facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• People-Oriented
• Sustainable Governance

Environmental Achievements

• Reduced carbon emissions by 57.68% compared with the 2020 baseline.
• Reduced electricity consumption by 64.45% compared with the 2020 baseline.
• Four factories obtained UL 2799 “Zero Waste to Landfill” certification at Gold and Platinum levels.
• 100% implementation rate of industrial wastewater discharge monitoring systems.

Social Achievements

• Maintained zero major labour rights violation incidents.
• Maintained zero occupational diseases caused by chemical agents.
• Achieved 91% employee retention rate for indirect labour.
• Provided an average of 54 hours in professional training courses per employee.

Governance Achievements

• Appointed a female independent non-executive director.
• Published updated Code of Conduct and Responsibility Standards.
• Established ESG Committee and ESG Task Force Team.
• No legal case regarding corrupt practices brought against the Group or its employees.

Climate Goals & Targets

Environmental Challenges

• Economic downturns, inflationary pressures, geopolitical issues, and extreme climate.
• Decreased revenue impacting water consumption intensity target.
• Data collection challenges for Scope 3 emissions (Category 9 and 14).

Mitigation Strategies

• Actively promoted ESG goals and actions, integrating good governance practices.
• Continued efforts to reduce water consumption.
• Excluded Categories 9 and 14 from Scope 3 emissions due to data limitations.

Supply Chain Management

Supplier Audits: 122 major suppliers audited in 2023 (50% increase from 2022)

Responsible Procurement

• Hon Hai Technology Group’s Supplier Social and Environmental Responsibility Code of Conduct (SER CoC)
• Green product requirements
• Conflict minerals due diligence
• RBA standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Long-term shifts in climate conditions

Transition Risks

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

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, SASB Standards, TCFD framework (partially), GRI Standards (partially)

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 27001, SA 8000, ISO 45001, ISO 9001, UL 2799 “Zero Waste to Landfill”

Sustainable Products & Innovation

• 3rd generation AI-Sorting Recycle Robot

Awards & Recognition

• Sustainalytics low ESG risk rating
• EcoVadis Bronze and Silver Medals
• Accredited Health Workplace badge
• ESG Practice Award and 2023 Best ESG Practice Award