Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced approximate 210,000 tons of CO2e in 2012
• Yearly intensity GHG emission in 2012 is 4.1% lower than the previous year.
• Improved production yield rate, reducing the amount of scrap
• Reduced chemicals and other materials in the production lines
• Continued reuse systems of SRS, NF and photo resistance with a reuse rate higher than 90% since 2009
• Started carbon sequestration through tree-planting activities

Social Achievements

• Achieved single-season after-tax profit in 2012 Q4 after years of losses
• Offered fair employment chance and wages with market competitiveness
• Provided comfortable working environment, subsidies of sporting club and art activity
• Paid attention to local employment
• Compliant to OHSAS 18001
• Developed a complete training system and set up "HannStar Academy"
• Won Silver medal in national Quality Control Circle Competition, and TTQS silver medal in training for employees.

Governance Achievements

• Revised “Board of directors meeting norms” to strengthen the board’s function
• Offered government-approved training to directors
• Announced important board resolutions immediately after meetings
• Implemented interest-avoiding policies for directors
• Established company-wide advocacy on “corporate compliance with antitrust law” and “Fair Trade Compliance operating rules”

Climate Goals & Targets

Environmental Challenges

• Years of losses due to global economic slowdown and weakened growth momentum in the TFT-LCD industry
• Anti-competitive litigations in the US, Europe, Korea, and Canada resulting in significant fines.

Mitigation Strategies

• Improved operational direction, changed inventory turnover, and targeted the right market to achieve profitability
• Company-wide advocacy on corporate compliance with antitrust law and Fair Trade Compliance operating rules.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Audits on QSA/QPA/GP systems
• Requirement for ICP1 and Certificate of Forbidden Materials
• Annual renewal of ICP1 report
• Compliance with HSF demand and standard

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI version 3.1

Certifications: OHSAS 18001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-saving LCD TV, LCD monitors and computers
• Thinner glass, narrow frame, and HUVA technologies for smartphones
• OLS (One Layer Solution) capacitive touch panel

Awards & Recognition

• Silver medal in national Quality Control Circle Competition
• TTQS silver medal in training for employees

Environmental Metrics

ESG Focus Areas

• Sustainable Management
• Integrity Governance
• Green Innovation
• Social Engagement from Humanistic Care

Environmental Achievements

• Reduced Scope 1 emissions by 44.7% compared to 2021.
• Reduced chemical oxygen demand and suspended solids in water discharge by 35% and 40%, respectively, compared to 2021.
• Achieved a 90.5% overall recycled waste rate.
• Reduced carbon emissions by 264,000 metric tons/CO2e through energy saving and carbon reduction projects.
• Annual water saving of 49.66 million liters.
• Solar power generation of 1,190,000 kWh in Tainan Factory area.
• Eco-Friendly Paper Display products reduced CO2 emissions by 120,000 metric tons compared to traditional displays.

Social Achievements

• Launched employee well-being programs, including various club activities and seminars.
• 41% of total employees were women in 2022.
• Total amount for social welfare exceeded NT$14.38 million.
• Total training hours for employees: 31,522 hours.
• Documentary “No Man Is An Island” won the 6th PwC Sustainability Impact Award.

Governance Achievements

• Established the Strategic and Sustainable Development Center.
• Female board members account for 57%.
• 100% completion rate of ethical management education and training for 2,380 employees.
• Implemented TCFD climate risk and opportunity quantitative financial impact analysis.

Climate Goals & Targets

Environmental Challenges

• Global pandemic, interest rate hikes, and the Russia-Ukraine War impacting the TFT-LCD industry.
• Overall decline in demand for panels.
• Supply chain disruptions due to geopolitical risks and COVID-19.
• Climate change risks (physical and transition risks).

Mitigation Strategies

• Adjusted production capacity structure and implemented accuracy improvements in all factories.
• Developed low energy consumption total reflection and semi-reflection products to optimize product portfolios.
• Strengthened cash flow management, keeping net liabilities at 2%.
• Developed alternative sourcing strategies.
• Implemented TCFD framework to assess and manage climate-related risks and opportunities.
• Installed NF3 and SF6 combustion and removal equipment.

Supply Chain Management

Supplier Audits: 178 in 2022

Responsible Procurement

• Supplier Commitment for Social Responsibilities
• Risk Assessment Form for Labor and Ethics
• Conflict mineral survey
• RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather incidents
• Rain type changes and drastic changes in weather patterns

Transition Risks

• Increase in the price of emitting GHGs
• Change in customer behavior
• Cost for transformation to low-carbon emissions
• Enhance Emission Reporting Obligations

Opportunities

• Development or promotion of low-carbon products and services
• Participation in carbon markets
• Response to changes in consumer preferences
• New market partnerships

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2021, SASB, TCFD, Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies

Certifications: ISO 9001:2015, IATF 16949:2016, IECQ QC 080000:2017, AS9100:D, IEC-61340-5-1:2016, ANSI ESD S20.20:2014, ISO/IEC 17025:2017, ISO 28000:2007, ISO 27001:2013, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, SONY GP

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives contribute to these goals through water resource management, energy efficiency improvements, waste reduction, and climate change mitigation.

Sustainable Products & Innovation

• Eco-Friendly Paper Display products

Awards & Recognition

• Taiwan Corporate Sustainability Awards (TCSA) Silver Award
• PwC Sustainability Impact Award (No Man Is An Island documentary)
• EcoVadis Bronze Medal
• Southern Taiwan Science Park Workplace Equal Rights Promotion Excellence Award