Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green energy
• Smart energy storage
• Electric vehicle motor and drive systems
• Environmental protection
• Social responsibility
• Corporate governance

Environmental Achievements

• Over 211 MW of solar photovoltaic systems built by the end of 2021 (cumulative target of 312 MW by the end of 2022)
• Successfully obtained UL9540 Energy Storage System safety on-site certification
• Commercial operation of a 1 MW energy storage system started in October 2021
• Development of high-efficiency amorphous core transformer
• Energy and water conservation certifications (Level 1 in energy efficiency and Gold label in water conservation) for refrigerators and washing machines
• Implementation of ISO 14001 and ISO 50001 in factories

Social Achievements

• Continued industry-education cooperation with Tatung High School and Tatung University
• Regular blood donation campaigns
• Community investment and charity events
• Employee welfare measures (compensation, vacation, and other benefits)
• Health and safety training for employees
• Implementation of ISO 45001

Governance Achievements

• Establishment of independent directors, Audit Committee, Remuneration Committee, and Sustainable Development Committee
• Implementation of robust corporate governance policies
• Upgrading information transparency and internet-based reporting system
• Third-party assurance of Sustainability Report by TÜV Asia Pacific Ltd. Taiwan Branch (TUV NORD)

Climate Goals & Targets

Environmental Challenges

• Continuous challenges amid the pandemic, global shortage of materials, and rising transportation costs
• Impact of global material shortages and rising shipping costs
• Operations suspended and pending court ruling of bankruptcy for Chunghwa Picture Tubes
• Fierce competition in the market
• High cost of energy storage business due to material shortages

Mitigation Strategies

• Organizational restructuring, business transformation, and cost control efforts
• Cost improvement and adjustment of product mix
• Disposal of assets through legal channels to reduce losses for Chunghwa Picture Tubes
• Technology cooperation with overseas companies
• Development of alternative sourcing strategies
• Introduction of green product design and energy efficiency improvements
• Active pursuit of Taipower Company energy storage equipment bids

Supply Chain Management

Responsible Procurement

• Requiring suppliers to sign contracts that comply with environmental protection laws and regulations
• Promoting a green supply chain
• Implementing evaluation indicators in supplier reviews/evaluations
• Establishing “Tatung health and safety management for construction suppliers”

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons and flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Development of renewable energy, energy storage equipment and high energy efficiency products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, ISO 50001, UL9540, Energy Label, Water Label, Green Mark, TAF, JIS, IEC, MID, ANSI, UL, ETL, PSE, RoHS, CE, ATEX, GB, IEC EX, CSA, CCC, Energy Star

Third-party Assurance: TÜV Asia Pacific Ltd. Taiwan Branch (TUV NORD)

Sustainable Products & Innovation

• High-efficiency amorphous transformers
• Energy-saving motors
• Energy-saving home appliances
• Smart home appliances
• Smart meter/PV solar/micro-grid systems
• Polymer-housed surge arrester
• Industrial and EV motors
• Automotive and fire-resistance cables
• Automotive and high power diodes
• Contact center system
• Operation support system
• Smart healthcare platform
• Micro type encoder and magnetic type contactless encoder/joystick
• Low temperature baking paints

Awards & Recognition

• Taiwan Excellence Award
• German If Design Award
• Japanese GOOD DESIGN Design Award
• FIABCI (Taiwan Real Estate Excellence Awards)
• 2018 Smart City Innovative Application Award
• 2019 Enterprise Project Management Benchmarking Award
• 2018 Taiwan Solar Power System Award
• 2018 Taichung City Renewable Energy Promotion Contribution Award
• 2019 International Project Management Benchmarking Enterprise Award
• 2020 Outstanding Enterprise Golden Peak Award
• 2020 Urban Engineering Quality Gold Award
• 2021 Taiwan Solar Power System Award
• 2021 Urban Engineering Quality Gold Award
• Top Solar Award

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Prosperity
• Effective Corporate Governance

Environmental Achievements

• Reduced GHG emissions by 760.73 tons CO2e
• Reduced electricity consumption by 1,536,823 kWh
• Waste recycling percentage of 76.01%
• Accumulated solar power systems capacity of 268MWp, approximately 151,557 tons CO2e reduction per year

Social Achievements

• Launched employee well-being programs, including health seminars, weight management classes, and blood donation activities.
• Employee training hours totaled 21,758 hours with 93.68% satisfaction rate.
• 94.33% of employees underwent performance reviews.
• New recruit retention rate after 3 months was 87.4%.

Climate Goals & Targets

Environmental Challenges

• Global pandemic, Russia-Ukraine war, and port congestion severely challenged operations.
• Increased GHG emissions (34.51% increase compared to 2021) due to refrigerant leakage at Taoyuan 1st Plant.
• Waste increased by 4.94% compared to 2021.
• Did not achieve target of reducing FR by 10% in occupational health and safety.

Mitigation Strategies

• Cost optimization, expense control, and recognition of gains from de-recognition of Chunghwa Picture Tubes Ltd. improved profitability.
• Developed improvement measures to reduce refrigerant leakage (material substitution, improved leak inspection methods, process simplification).
• Continued commitment to waste sorting and utilization, design and process improvement to reduce waste generation.
• Strengthen safety awareness and education during operations, enhance auto inspection for machinery, and request supervisors to strengthen work safety requirements.

Supply Chain Management

Supplier Audits: Regular audits conducted to assess supplier management status.

Responsible Procurement

• Adding anti-corruption and human rights clauses in contracts.
• Signing the “Supplier Commitment Letter”.
• Issuing “Declaration of Minerals Conflict-Free from Tatung Company”.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, flooding, extreme weather events

Transition Risks

• Renewable Energy Development Act requirements
• Financial Regulatory Commission requirements on GHG inventory and verification
• Potential carbon tax or carbon trading system

Opportunities

• Increased demand for energy-saving products
• Increased demand for solar power systems and energy storage equipment

Reporting Standards

Frameworks Used: AA1000 AS v3, GRI Standards, SASB Standard

Third-party Assurance: TUV NORD Taiwan Co., Ltd.

UN Sustainable Development Goals

• Goal 6: Clean water and sanitation
• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 10: Reduced inequalities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Tatung integrates these SDGs into its sustainable strategies and material topics.

Sustainable Products & Innovation

• Energy-saving motors
• Amorphous transformers
• Smart meters
• Energy-efficient air conditioners

Awards & Recognition

• TCSA Taiwan Corporate Sustainability Award - Gold Award (Sustainability Reporting)
• Taiwan Stock Exchange’s Taiwan Green Energy and Electric Vehicle Index constituent
• Ranked 1st in electrical and mechanics category of the Top 100 Carbon Competitiveness Survey by Business Weekly
• Tatung 3C Trusted Brand Gold Award in home appliances customer service category
• 31st Taiwan Excellence Award for Multi-Functional Cooker (TAC-11R-M)

Environmental Metrics

ESG Focus Areas

• Climate change and carbon management
• Corporate governance and ethical practice
• Product quality and safety
• Occupational health and safety
• Employment

Environmental Achievements

• Reduced GHG emissions by 16.86% compared to 2021 baseline year
• Achieved 76% waste recycling rate
• Acquired Green Mark for 10 models, Energy Label for 66 models, and Water Label for 15 models
• Green procurement amount in 2023: NT$438,845,921

Social Achievements

• New recruit retention rate after 3-month trial period: 85.2%
• No major labor disputes
• Total training hours: 22,989 hours; average training satisfaction rate: 93.82%
• Raised NT$608,000 in scholarships for underprivileged children
• Organized blood donation activity with 913 bags of blood donated

Governance Achievements

• Corporate governance performance reached the top 6% to 20% range in the 10th Corporate Governance Evaluation
• All board and functional committee performance evaluations rated as “Good”
• Chief Legal Officer appointed as Chief Corporate Governance Officer
• No significant monetary fines or other non-monetary penalties in 2023

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical wars and trade protectionism
• Inflation and exchange rate changes impacting the technology industry
• Uncertainty of global economic growth
• Increased frequency of extreme weather events (typhoons, flooding)
• Regulatory changes related to renewable energy and carbon fee collection

Mitigation Strategies

• Expansion of electricity and energy business
• Development of alternative sourcing strategies
• Focus on energy creation, energy storage, and energy saving
• Implementation of risk management policies and procedures
• Investment in insurance and disaster prevention measures
• Development of sustainable products and energy-efficient solutions

Supply Chain Management

Supplier Audits: 100% of new suppliers signed Supplier Commitment Letter

Responsible Procurement

• Green procurement
• Supplier Code of Conduct
• Supplier sustainability requirements
• Conflict minerals policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, flooding)

Transition Risks

• Regulatory changes related to renewable energy and carbon fee collection
• Market shifts towards lower-carbon products and services

Opportunities

• Increased demand for renewable energy and energy storage solutions
• Development of energy-efficient products

Reporting Standards

Frameworks Used: AA1000 AS v3, GRI Standards, SASB Standard, Taiwan Stock Exchange Corporation Rules

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 27001:2022, ISO 50001, BS10012, TAF

Third-party Assurance: TÜV NORD Taiwan Co., Ltd.

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13

Tatung's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Energy-efficient motors
• Amorphous transformers
• Smart meters
• Energy-saving home appliances

Awards & Recognition

• Trusted Brand Gold Award (Reader’s Digest)
• TSAA Taiwan Sustainability Action Award
• TCSA Taiwan Corporate Sustainability Award