Cheng Uei Precision Industry Co., Ltd.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:128.1729 tCO2e (Scope 1) and 2,391.2289 tCO2e (Scope 2) in 2021

Scope 1 Emissions:128.1729 tCO2e (2021)

Scope 2 Emissions:2,391.2289 tCO2e (2021)

ESG Focus Areas

Greenhouse gas emissions
Sustainable management
Corporate social responsibility

Environmental Achievements

Completed Taiwan greenhouse gas inventory and obtained a greenhouse gas verification statement from Taiwan SGS Limited (SGS).
2021 sustainability report completed by a third party for Type 1 moderate-level assurance per the AA1000 Assurance Standard.
Hosted a beach clean-up activity to promote the mission goals of “Sustainable Beach Cleaning, An Earth that’s Always Green.”
Passed ISO 14001, ISO14064, ISO50001, QC080000 and OHSAS18001 system certifications.
Set a carbon reduction target aligned with preventing temperatures from increasing 1.5°C by 2030, and the carbon reduction plan was officially certified by SBTi in November 2022.

Social Achievements

Year-end commendation meeting to commend outstanding units and individuals.
Provides congratulations and condolences when employees experience marriage, childbirth, hospitalization, or death (including immediate family members).
All employees participate in labor insurance, group insurance, etc.
Provides staff canteen, uniforms, health diagnosis subsidies, medical consultations, awards and scholarships, and social gatherings.
Various societies have been established, with subsidies provided for their activities.

Governance Achievements

Established a Corporate Governance and Sustainable Development Committee.
Appointed a corporate governance officer.
Established a Remuneration Committee and an Audit Committee.
Formulated a code of practice for corporate governance.
All directors completed training hours in accordance with specifications of the Main Points of Advanced Training Implementation for Directors and Supervisors of Listed Companies.

Climate Goals & Targets

Long-term Goals:

Expand market operations and develop diversified products and services.
Get a feel for market trends and make good use of the Group’s technical resources.
Continuously cultivate and develop human talent.
Achieve a 42% reduction in Scope 1 and Scope 2 emissions by 2030 (compared to 2021).
Achieve a 25% reduction in Scope 3 emissions from the use of goods and services purchased and sold by 2030 (compared to 2021).

Medium-term Goals:

Continue to promote with core products and capabilities in line with support of optics, increasing market size and creating benefits of high-value output.
Implement internal carbon pricing.

Short-term Goals:

Improve achievement rates, profitability, product differentiation, technical capabilities, product quality, and management capabilities.
Reduce costs, expenses, product delivery, inventory, product development time, etc.
Take advantage of vertical integration to strengthen the integration of Group resources.

Environmental Challenges

Intensified geopolitical risks and the reorganization of corporate supply chains.
Impact of the Ukraine-Russia war on international prices for food, raw materials, and energy.
Rising interest rates and mounting inflation influencing economic momentum.
Significant disruptions to business operations.
Businesses accelerating destocking to maintain greater agility in response to challenges.

Mitigation Strategies

Adopting a conservative attitude in anticipating economic growth.
Improving internal management capabilities to reduce various production costs and provide customers with the best service and technical resources.
Establishing a good cooperative relationship with customers to achieve a win-win goal.
Focusing on cost reduction and value creation.
Grasping consumer acceptance and preference for new 3C products and understanding consumption habits and tendencies of target consumers in various regions to propose different sales strategies.

Supply Chain Management

Responsible Procurement

Supplier Integrity Commitment Agreement

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather such as typhoons and floods

Transition Risks

Increased cost of renewable energy acquisition; cost of transition to a low-carbon economy
Fuel/energy tax or carbon tax; net-zero emission trend; long-term difficulty in obtaining renewable energy

Opportunities

Development of new products and circular economy innovation of raw materials; improving the natural disaster response and defense mechanism; and reducing the use of water resources.
Participation in renewable energy projects, carbon trading markets and energy-consuming equipment renovations.
Improvement of energy resource production efficiency; investment in renewable energy; generation of opportunities for carbon assets and enhancement of our corporate reputation.

Reporting Standards

Frameworks Used: GRI, SBTi

Certifications: ISO 14001, ISO14064, ISO50001, QC080000, OHSAS18001, ISO/TS 16949, ISO9001, IATF16949, ISO13485, ANSI ESD S20.20, ISO17025, C-TPAT, AEO

Third-party Assurance: Taiwan SGS Limited (SGS), AA1000 Assurance Standard

UN Sustainable Development Goals

Not disclosed

Sustainable Products & Innovation

Lead-free products (launched April 1, 2005)

Awards & Recognition

Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:113,323 tCO2e/year (Scope 1 + Scope 2 Market-Based)

Scope 1 Emissions:5,982 tCO2e/year

Scope 2 Emissions:107,341 tCO2e/year (Market-Based)

Scope 3 Emissions:640,008 tCO2e/year

Renewable Energy Share:54.88%

Water Consumption:2,918 km3/year