Climate Change Data

FLYTECH TECHNOLOGY CO., LTD.

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Energy Consumption:2,931,451 KWh (2020); 3,564,408 KWh (2021)
Water Consumption:11,586 m3 (2020); 11,099 m3 (2021)
Waste Generated:167.04 tons (2020); 153.73 tons (2021)
Carbon Intensity:8.47 kg CO2e (2020); 8.92 kg CO2e (2021)

ESG Focus Areas

  • Corporate Governance
  • Corporate Commitment
  • Environmental Protection
  • Social Participation

Environmental Achievements

  • All waste reduced by 7.68% compared with the previous year in 2021.
  • Water consumption per capita decreased by 11.16% compared to 2020.
  • Up to 98% of Flytech’s products were made from recyclable and reusable materials.
  • Replaced the air conditioning system at the Neihu headquarters with an energy-efficient model for power savings

Social Achievements

  • Obtained the ISO 45001 certification for occupational safety and health system in 2020.
  • Proportion of female supervisors has reached 30%.
  • Through initiatives like "Flytech Career Camp" and "Seed Management Trainee Program", we cultivated talented students to join Flytech.
  • Despite the ongoing pandemic in 2021, there were more than 300 people participating in charity events.
  • A total of NTD$3.9 million of "Excellence and Diligence Scholarship" was issued to outstanding and low-income students in rural high (vocational) schools.
  • Ensured the right of work and income for all employees with no layoff, no pay cut, no shift reduction, and no unpaid leave during the COVID-19 pandemic from 2020 to 2021.

Governance Achievements

  • Ranked within the top 6%-20% of Annual Corporate Governance Evaluations by Taiwan Stock Exchange for four consecutive years since 2018.
  • Achieved an honor in the first-ever application of “2021 Excellence in Corporate Social Responsibility” by CommonWealth Magazine, ranking No.8 in Small Giant Group.

Climate Goals & Targets

Long-term Goals:
  • Continue to maintain no major occupational safety and health incidents.
  • Continue to maintain no major penalty matters or disputes.
  • The control of notifiable infectious diseases is lower than the average published by the CDC.
  • The occurrence rate of occupational disasters that can be recorded by employees is less than 0.5%.
Medium-term Goals:
  • Continue to maintain good performance.
  • Continue to keep good performance.
  • Continue to implement ISO 9001, ISO 13485, and IATF 16949 quality management systems every year.
  • Continue to develop new and competitive software products. And increase the revenue share of Non-POS new products and Non-hardware software.
  • Local suppliers account for 90%.
  • Continue to implement ISO 14064-1 inventory and ISO 14001 environmental management system certification every year.
  • The electricity consumption per unit of output is reduced by 5% compared with 2019.
  • Carbon dioxide emission equivalent (CO2e) decreased by 5% compared with 2019.
  • Increase employee retention rate by 10%.
  • Improve employee satisfaction by 20%.
  • Female supervisors account for 40%.
  • Obtain silver award or certification above in TTQS.
  • Establish a comprehensive online training platform with a utilization rate of 70%.
  • Establish a comprehensive succession planning program.
Short-term Goals:
  • Maintain the top 20% in corporate governance evaluation.
  • Achieve continuous revenue growth, stable profitability, and consistent dividend payouts.
  • Repair rate AFR<0.9%, MTBF>60,000 hours.
  • Local suppliers account for 90%.
  • The parent company has introduced the ISO14064-1 inventory system and obtained the verification to properly manage greenhouse gases and improve energy efficiency.
  • The weight of household waste and business waste was reduced by 3% compared with the previous year.
  • The per capita water consumption decreased by 1% compared with the previous year.
  • Implement an evaluation of paper packaging materials and plan to replace EPE (expanded polyethylene) with more environmentally friendly paper packaging.
  • Participated in the 2022 annual salary survey, and checked and adjusted employee salaries based on the results.
  • Reduce the turnover rate by 10% compared to the previous year.
  • Achieve a 32% representation of female supervisors.
  • Continue to implement ISO 14001 Environmental Management and ISO 45001 Occupational Safety and Health Management systems every year.

Environmental Challenges

  • COVID-19 pandemic continued to spread around the world, posing challenges to business finance, global supply chain breakdown, changes of market consumption patterns, and challenges related to climate change and energy supply.
  • Global shortage of parts in 2021, facing the crisis of lack of materials and material price increased.
Mitigation Strategies
  • Through collaboration with our customers, suppliers, employees, investors and all stakeholders, we successfully overcame these difficulties.
  • Implemented rigorous preventive measures to provide the safest and healthiest workplace for our employees (spending NTD$ 5.29 million on rapid tests, NTD$ 3.01 million of rapid tests for employees’ household needs, and NTD$ 720,000 vaccine incentives).
  • Minimized the impact of material price hikes caused by material shortages through measures such as planning/ project procurement, material preparation in advance, cooperation with suppliers, design changes, and product price increases.

Supply Chain Management

Responsible Procurement
  • Supporting excellent local suppliers
  • Including ISO 9001 and 14001 standards in the evaluation process when selecting new suppliers
  • Requiring suppliers to follow government environmental regulations, provide reports on the restriction of hazardous substances, and comply with international environmental laws and regulations
  • Requiring suppliers to sign a declaration of non-use of conflict minerals, and completing the "Conflict Minerals Questionnaire" and "Cobalt Questionnaire"

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoon, flood
  • Unstable energy supply (power outages, water restrictions)
  • Average temperature rises
  • The number of extreme weather heatwave days increases
Transition Risks
  • Greenhouse Gas Emissions Pricing
  • Higher energy expenses
  • Energy control restrictions
  • Certification expenses of greenhouse gas emissions Inventory and carbon footprint
  • Low-carbon technology transition cost
  • Replacing products and services with low-carbon commodities
  • Equipments scrapped in advance
  • Increased customer demand for low-carbon and energy-saving products
  • Increase in carbon tax/fee in customers' contury
  • Rising raw material costs
  • Changes in market preferences
  • Increasing interest from stakeholders
Opportunities
  • Implement green production with low energy consumption and low carbon emissions
  • Environmental protection and energy-saving new products
  • Improve energy efficiency with green manufacturing process and daily operation
  • New environmentally friendly and energy-saving products to attract customers and increase competitiveness
  • Develop new markets
  • Introduce the concept of energy saving and carbon reduction in the product development stage, and design new low-carbon energy products

Reporting Standards

Frameworks Used: GRI Standards, SASB guidelines, TCFD recommendations

Certifications: ISO 9001, ISO 13485, ISO 27001, ISO 14001, ISO 45001, IATF 16949

UN Sustainable Development Goals

  • Quality education
  • Clean water and sanitation
  • Affordable and clean energy
  • Suitable jobs and economic growth
  • Climate action
  • Diverse partnerships

Flytech's initiatives, such as the Flytech Career Camp, scholarships, and Design For Taiwan, contribute to quality education and diverse partnerships. Energy efficiency and water conservation efforts contribute to affordable and clean energy and clean water and sanitation. The company's overall sustainability efforts contribute to climate action and economic growth.

Sustainable Products & Innovation

  • Inefi cloud monitoring UEM software

Awards & Recognition

  • 8th place in the Small Giant Group of the 2021 CommonWealth CSR Awards

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:2607.33 tCO2e/year
Scope 1 Emissions:173.04 tCO2e/year
Scope 2 Emissions:1857.71 tCO2e/year
Scope 3 Emissions:576.58 tCO2e/year
Total Energy Consumption:3649732 kWh/year
Water Consumption:10919 m3/year
Waste Generated:211.56 tons/year
Carbon Intensity:12.43 kgCO2e/unit of production in 2022.

ESG Focus Areas

  • Corporate Governance
  • Employee Relations
  • Customer Service and Supplier Management
  • Green Operation
  • Social Engagement

Environmental Achievements

  • Reduced electricity consumption per unit of output by 3% compared with 2021.
  • Decreased per capita water consumption by 6% compared to the previous year.
  • Completed the greenhouse gas inventory report for the year 2021 and obtained ISO 14064-1 certification.
  • No wastewater discharge from 2019 to 2022.
  • No major penalties for violations of environmental protection regulations from 2019 to 2022.

Social Achievements

  • Introduced several new welfare systems, including flexible working hours, additional paid leave, stress-relieving massages, and an Employee Assistance Program (EAP).
  • Reduced employee turnover by 22% compared with the previous year.
  • Organized seven events with over 745 participants through the Flytech Foundation and employee clubs.
  • Completed six Design for Taiwan workshop sessions, training 534 university students.

Governance Achievements

  • Ranked within the top 6%-20% of Annual Corporate Governance Evaluations for five consecutive years.
  • Achieved 11th place in the Medium Enterprise Group of the 2022 Excellence in Corporate Social Responsibility Awards by CommonWealth Magazine.
  • Voluntarily released its first English version of the financial quarterly report in 2022.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050.
Short-term Goals:
  • Reduce unit electricity consumption by 3% compared to 2021 by 2025.
  • Decrease annual carbon dioxide equivalent emissions by 5% by 2025.
  • Local suppliers account for 90% of the procurement amount.
  • Increase the proportion of suppliers signing ESG-related commitments/statements.

Environmental Challenges

  • Shortage in electronic materials, port congestion, and global supply chain breakdown in the first half of 2022.
  • Increased waste weight due to increased production capacity and working hours.
  • Global shortage of parts in 2022, leading to material shortages and increased material prices.
Mitigation Strategies
  • Expansion into new customer areas, completion of new projects, and effective product strategy aimed at increasing the proportion of Non-POS shipments.
  • Strengthening design for cost control, introducing modular design and converged material specifications, planning long-term procurement or project procurement for raw materials.
  • Crisis management team collaborated with suppliers on supply forecast platform, safety stock procurement, long-term procurement plans, second source, and project-based procurement.
  • Team worked closely with customers to arrange sea and air transportation flights and outsourced production to address labor shortages.

Supply Chain Management

Responsible Procurement
  • Local procurement (90.11% in 2022)
  • Supplier sustainability requirements (ESG-related commitment letters)
  • Code of conduct (RBA Code of Conduct)

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoon, flood
  • Continuous rise in electricity costs
  • Shortage in water resources
  • Unstable energy supply
Transition Risks
  • Greenhouse gas emissions pricing
  • Higher energy expenses
  • Energy control restrictions
  • Low-carbon technology transition cost
  • Increased customer demand for low-carbon products
  • Changes in market preferences
Opportunities
  • Green production with low energy consumption
  • Government energy-saving subsidies
  • Environmentally friendly and energy-efficient new products
  • New market development

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB guidelines, TCFD recommendations

Certifications: ISO 9001, ISO 13485, ISO 14001, ISO 45001, IATF 16949, ISO 14064-1

Third-party Assurance: KPMG

UN Sustainable Development Goals

  • Quality education
  • Clean water and sanitation
  • Affordable and clean energy
  • Decent work and economic growth
  • Climate action
  • Partnerships for the goals

Flytech's initiatives contribute to these SDGs through various programs such as Flytech Career Camp, scholarships, Design for Taiwan, and environmental protection measures.

Sustainable Products & Innovation

  • Cloud monitoring UEM Inefi software service
  • Energy-efficient motherboards (F34)
  • Products with integrated design and removable modules
  • Products using recycled plastics and paper-plastic packaging materials (planned)

Awards & Recognition

  • German iF Design Award (five times)
  • 2021 CommonWealth Magazine Corporate Citizen Awards (8th place)
  • 2022 CommonWealth Magazine Corporate Citizen Awards (11th place)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2203.75 tCO2e/year (2023)
Scope 1 Emissions:168.42 tCO2e/year (2023)
Scope 2 Emissions:1480.86 tCO2e/year (2023)
Scope 3 Emissions:554.47 tCO2e/year (2023)
Water Consumption:9235 m3/year (2023)
Waste Generated:129.12 tons/year (2023)
Carbon Intensity:15.31 kgCO2e/machine (2023); 0.76 kgCO2e/thousand dollars of revenue (2023)

ESG Focus Areas

  • Corporate Governance
  • Environmental Protection
  • Social Participation
  • Product Innovation
  • Customer Commitment
  • Supply Chain Sustainability

Environmental Achievements

  • Electricity consumption decreased by 17.87% compared to 2022.
  • Waste weight decreased by 38.9% compared to 2022.
  • Carbon dioxide emissions decreased by 13.71% compared to 2022.
  • Completed ISO 14064-1 greenhouse gas inventory report for 2021 and 2022.
  • Completed ISO 14067 product carbon footprint verification for product K727 F34.
  • Established a comprehensive carbon management platform.

Social Achievements

  • Average training hours per person increased by 7.2%.
  • Flytech Foundation organized seven charity events with over 608 participants.
  • Flytech Foundation completed seven Design For Taiwan workshop sessions, training 594 university students.
  • No major occupational hazards at facilities in 2023.

Governance Achievements

  • Ranked within the top 21-35% of all listed companies in corporate governance evaluations in 2023.
  • Ranked within the top 6-10% among listed companies with a market value of NT$5-10 billion for two consecutive years.
  • Achieved 8th place in the CommonWealth Magazine's Top Corporate Citizens Award for medium-sized enterprises in 2023.
  • Executive compensation linked to ESG achievements starting in 2024 (1-10% of annual performance evaluations).

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
  • Reduce greenhouse gas emissions (scope 1+2) by 20% by 2030
  • Reduce waste by 5% by 2030
Medium-term Goals:
  • Achieve 30% renewable energy by 2030
  • Reduce greenhouse gas emissions (scope 1+2) by 5% by 2025
  • Reduce waste by 3% by 2025
Short-term Goals:
  • Reduce water consumption by 1% by 2025
  • Reduce electricity consumption by 3% by 2024
  • Reduce greenhouse gas emissions (scope 1+2) by 3% by 2025

Environmental Challenges

  • Decline in revenue in 2023 due to high customer inventory levels post-pandemic and shifts in market demand.
  • Changes in consumer lifestyles and increased use of mobile devices shifting demand towards unmanned and intelligent machines.
  • Supply chain disruptions due to global material shortages and congested shipping routes.
Mitigation Strategies
  • Integrated hardware, software, and AI technologies to offer intelligent solutions.
  • Developed a range of products tailored to meet customer needs.
  • Adjusted marketing strategies.
  • Implemented diversified material preparation strategies to ensure stable supply chain.
  • Adjusted inventory levels proactively.

Supply Chain Management

Supplier Audits: Quarterly

Responsible Procurement
  • Local procurement (86.2% in 2023)
  • Supplier Code of Conduct (to be implemented in September 2024)
  • Corporate Social Responsibility and Integrity Commitment (70.63% of suppliers signed)
  • Environmental Protection and Prohibited Substances Commitment Declaration
  • No Use of Conflict Minerals Declaration
  • ISO 9001, ISO 14001, and ISO 45001 certifications for suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons, floods, extreme weather events
Transition Risks
  • Policy and legal risks (carbon pricing, energy restrictions, carbon taxes)
  • Technology risks (low-carbon technology transition costs)
  • Market risks (increased customer demand for low-carbon products, competitor actions)
Opportunities
  • Development of energy-efficient products
  • Government energy-saving subsidies
  • New market development

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB guidelines, TCFD recommendations, UN Sustainable Development Goals

Certifications: ISO 9001, ISO 13485, ISO 14001, ISO 45001, IATF 16949, ISO 14064-1, ISO 14067, ISO 27001

Third-party Assurance: AFNOR Asia Ltd.

UN Sustainable Development Goals

  • Goal 4 (Quality Education)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 13 (Climate Action)
  • Goal 17 (Partnerships for the Goals)

Flytech's initiatives in talent development, environmental protection, social engagement, and corporate governance contribute to these SDGs.

Sustainable Products & Innovation

  • Energy-efficient motherboards meeting Energy Star 8.0 standards
  • Products with paper-based cushioning packaging
  • Modular design for increased product longevity
  • inefi Spotlight unified endpoint management software

Awards & Recognition

  • CommonWealth Magazine's Top Corporate Citizens Award
  • CommonWealth Magazine Corporate Citizen Award
  • iF Design Award
  • Red Dot Design Award
  • European Product Design Awards
  • Innovative Design Awards of Computex Taipei