Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Environmental protection
• Employee rights
• Community involvement

Environmental Achievements

• Won an excellence award from the Hsinchu Science-based Industrial Park Carbon Reduction Awards
• Reduced GHG emissions (Scope 1 and 2) from 7740.49 tons of CO2e in 2008 to 4645.00 tons of CO2e in 2016.
• Implemented Green Product Management System (GPM) to ensure product compliance with EU RoHS directive and REACH regulations.
• Achieved a high product recycling rate in accordance with EU WEEE product design principles.

Social Achievements

• Established Alpha Networks Foundation in 2006 to support educational, cultural, and charitable activities.
• Over 95% of managers are local residents.
• Annual health exam participation rate was 97.6% in 2017.
• Implemented measures to support pregnant women and new parents, including parking spaces, nursing rooms, and parental leave.

Governance Achievements

• Established CSR Committee to evaluate global sustainability trends and key issues.
• Established Audit Committee and Compensation Committee to ensure operational transparency and shareholder interests.
• Implemented a whistleblower mailbox for stakeholders to report violations.

Climate Goals & Targets

Environmental Challenges

• Global advances in technology leading to shorter product life cycles and uncertainty during new product development.
• Competition on price from vendors.
• Supply chain disruptions due to raw material shortages.
• Financial risks such as bad debt and exchange rate fluctuations.
• Regulatory compliance challenges due to changing legal policies and standards.

Mitigation Strategies

• Adopted a “mobile communications centric” development strategy.
• Formed strategic alliances with suppliers.
• Monitored market supply and demand to adjust delivery times and prepare safety inventory levels.
• Established a currency hedging mechanism.
• Established a dedicated unit for legal compliance and advice.

Supply Chain Management

Supplier Audits: 28 companies audited in 2017

Responsible Procurement

• RBA Code of Conduct
• Green Supply Chain practices
• Hazardous substance controls

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core option, AA1000 Stakeholder Engagement Standard

Certifications: ISO 9001, TL 9000, IATF 16949, ISO 14001, IEC QC 080000:2017, AEO

Third-party Assurance: TÜV Rheinland Taiwan Ltd.

Awards & Recognition

• Hsinchu Science-based Industrial Park Carbon Reduction Awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Employee Rights
• Community Involvement

Environmental Achievements

• Successfully launched private 5G network application testing projects domestically and overseas, helping enterprises reduce costs.
• Implemented smart planning in factories and offices, focusing on energy conservation, carbon reduction, green energy, and environmental protection.
• Donated 10 access points to Shuanglong Elementary School to improve the remote township education network environment.

Social Achievements

• Launched the "Remote Township Education Network Environment Improvement Project" in collaboration with TSMC Charity Foundation.
• Sponsored AI courses at the Hsinchu City East District Senior Learning Center and other elementary schools.
• Maintained a relatively balanced gender ratio at the plants (47.95% female, 52.05% male).

Governance Achievements

• Established an Alpha CSR Committee to evaluate global sustainability trends and key issues.
• Complied with the Company Act, Securities Exchange Act, and other relevant laws.
• Formulated ethical corporate management best practice principles, CSR best practice principles, and other policies to protect shareholder rights and interests.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disrupted interpersonal interactions and international exchanges, severely impacting global economic and industrial activities.
• Slowing global economy and uncertainties associated with changes in world trade structure.
• Industry competition based on price rather than comprehensive solutions.

Mitigation Strategies

• Upholding core values of "ethics," "customer values," "agility," and "concerted performance" during the pandemic.
• Implementing internal savings and control measures, adjusting A/C and lighting in offices, waste classification, and requiring staff to bring their tableware.
• Investing in cutting-edge technology and establishing core competitive advantages, seeking strategic partners.

Supply Chain Management

Supplier Audits: 42 supplier audits in 2020 (1 annual, 41 new)

Responsible Procurement

• RBA Code of Conduct
• Green Supply Chain practices
• Hazardous substance controls

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: TÜV Rheinland (Type 1, medium level assurance based on AA1000 AS(2008) and GRI Standards: Core option)

Sustainable Products & Innovation

• Green products with fully HSF products as the ultimate goal

Awards & Recognition

• Excellence award from the Hsinchu Science-based Industrial Park Carbon Reduction Awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Products and Services
• Fusion of Society
• Sustainable Environment
• Sustainable Value Chain

Environmental Achievements

• Reduced carbon emissions by 8.14% from 2021
• Achieved 100% compliance rate for hazardous substance management
• Improved recycling rate of waste

Social Achievements

• Zero occupational incidents
• Implemented comprehensive policies to protect employee rights and welfare, particularly for migrant workers
• Provided 32,035 hours of training for 21,014 employees

Climate Goals & Targets

Environmental Challenges

• Economic downturn/demand slowdown
• US clients requiring non-China supply chains
• Highly concentrated sales
• Covid-19 resurgence
• Energy policy/power shortages
• Natural disaster risks
• Lack of second source for key components in Vietnam factory
• City lockdowns causing logistical issues

Mitigation Strategies

• Actively developing new customers and diversifying revenue streams
• Innovative R&D to improve product functions/quality/specifications
• Breaking into emerging fields (e.g., low-orbit satellites)
• Supply chain management department preparing second sources (non-China)
• Cost reduction and transfer
• Inventory reduction and activation
• Vietnam factory task force regularly inspecting work progress
• Maintaining epidemic prevention and business continuity plans

Supply Chain Management

Supplier Audits: 151 in 2022

Responsible Procurement

• RBA Code of Conduct
• Green Supply Chain principles
• Hazardous substance controls
• Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons/heavy rainfall
• Water shortage/drought
• Average temperature rises
• Sea level rises

Transition Risks

• Green regulations
• Carbon emission disclosure requirements
• Changes in market preferences towards low-carbon products
• Customers requiring energy conservation and green energy

Opportunities

• Development of energy-efficient products
• Participation in renewable energy projects
• Investment in renewable energy market

Reporting Standards

Frameworks Used: GRI Standards 2021, AA1000 AS V3, TCFD

Certifications: ISO 9001, TL9000, IATF 16949, ISO 14001, QC080000, ISO 14064-1, AEO, ISO 27001

Third-party Assurance: TÜV Rheinland

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives align with SDGs through energy efficiency, responsible supply chain management, employee well-being, and climate action.

Sustainable Products & Innovation

• Energy-efficient products
• Products with easy disassembly and recycling design

Awards & Recognition

• Silver Award in the Corporate Sustainability Report Category of the 15th "TCSA Taiwan Sustainability Awards"