Climate Change Data

Silitech Technology Corporation

Climate Impact & Sustainability Data (2020)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:2,604 tCO2e/year (estimated for 2021, South China factory)

ESG Focus Areas

  • Environmental Protection
  • Employee Well-being
  • Corporate Governance

Environmental Achievements

  • Reduced carbon emissions year-over-year from 10,970 tons in 2016 to an estimated 2,604 tons in 2021 at the South China factory.
  • Implemented energy conservation, carbon reduction, and greenhouse gas reduction strategies.
  • Obtained ISO 14001, ISO 50001 certifications.
  • Implemented Hazardous Substance Free (HSF) project meeting EU RoHS standards.

Social Achievements

  • Established comprehensive talent development programs and offers internal and external training lectures.
  • Provided annual complimentary physical examinations, enrollment in labor and national health insurance, and group insurance for employees.
  • Established breastfeeding rooms and signed agreements with kindergartens for employee childcare services.
  • Maintained harmonious labor relations with no labor disputes.

Governance Achievements

  • Established Audit Committee and Remuneration Committee.
  • Implemented “Rules for Evaluating Board of Directors and Functional Committee Performance”.
  • Conducted regular internal and external board performance evaluations.
  • Established Corporate Social Responsibility Committee (CSR & Integrity Management Committee).
  • Formulated “Corporate Governance Best Practice Principles”, “Procedures for Handling Major Internal Information”, and “Regulations for Handling Fraud Reports”.

Climate Goals & Targets

Long-term Goals:
  • Deploy and adjust production bases flexibly and effectively.
  • Introduce automated processes.
  • Establish a smart manufacturing production model.
  • Seek a strategic alliance of peers or different industries.
Medium-term Goals:
  • Develop high value-added products based on existing core technologies.
  • Continuously strengthen core technical capabilities.
  • Establish new core technologies and products based on market trends.
  • Develop products for cross-industry applications.
Short-term Goals:
  • Find new market applications based on existing core technologies.
  • Build a business development platform and process.

Environmental Challenges

  • Impact of the Coronavirus pandemic, resulting in a 24.5% decrease in consolidated revenue.
  • Gradual reduction of production in Shenzhen Xurong factory, leading to one-time impairment losses and layoff expenses.
  • Increased labor costs in China and the rise of mainland competitors.
  • Shortage of raw materials in the electronic supply chain.
  • Difficulty in recruiting and cultivating cross-domain integrated talents.
Mitigation Strategies
  • Refocused on Automotive Components and Mechanical Integration.
  • Concentrated resources on new cross-industry fields.
  • Increased production capacity in Taiwan and Malaysia factories.
  • Developed alternative sourcing strategies.
  • Introduced automated processes to reduce manpower requirements and establish a smart manufacturing production model.
  • Strengthened R&D team building and vertical integration.
  • Actively developed European, American, and Japanese markets.

Supply Chain Management

Supplier Audits: Supplier evaluation meeting held annually.

Responsible Procurement
  • Supplier sustainability requirements
  • ROHS agreement with suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards (IFRS)

Certifications: ISO 9000, ISO 14000, TS16949, ISO 14001, ISO 50001, IECQQC080000

Third-party Assurance: Deloitte & Touche

Sustainable Products & Innovation

  • Development of environmentally friendly and non-toxic materials.