Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Operational Performance
• Product Quality
• Sustainable Supply Chain
• Greenhouse Gas Emissions and Energy Management
• Talent Cultivation and Training
• Employee Compensation and Benefits
• Occupational Safety and Health
• Climate Change
• Risk Control

Environmental Achievements

• Replacement with energy-saving LED lamps in office areas saved the Company NT$5,224 a year.
• Replacement of energy-saving air conditioning systems at the headquarters plant reduced the total electricity consumption by 15.64% between July and December.
• Metal wastes generated during the production process were recycled through effective management procedures, and the recycled scrap metal was sold to qualified scrap recyclers to reduce resource waste.

Social Achievements

• Received the “Best Financially Managed Company” from the Global Semiconductor Alliance (GSA)
• Average salary of full-time employees not holding executive positions increased 32.7% from the previous period (Market Observation Post System, MOPS)
• With an aim to accommodate more talents and provide a more comfortable workplace environment for employees, FocalTech purchased an office building in 2021 for NT$1.07 billion. The office building can house about 700 people. Additionally, it is equipped with innovative hardware and facilities, and rich environmental functions to facilitate organizational dynamics, teamwork and vitality.
• Formulate training plans every year targeting new employees, professional skills, general knowledge of management, integrity management culture, and information security, etc.

Governance Achievements

• 100% attendance rate for Board Meeting in 2021
• The Board of Directors approved the Risk Management Policies and Procedures in 2021
• No incident of corruption or bribery recorded in 2021.

Climate Goals & Targets

Environmental Challenges

• Competition for talents from technology companies
• International political factors and changes in wafer supply and demand
• Information system risks
• Climate change impacts (electricity and water supply instability, rising temperatures)
• EU carbon border tax (2023 onwards)

Mitigation Strategies

• Salary adjustment, increased bonus ratio, employee benefits, industry-academia cooperation, internship system, scholarships
• Strengthening relationships with customers and supply chain
• Information Security Policy, vulnerability scanning, firewall protection, user access control
• Developing ICs with lower power consumption and smaller wafer size, exploring green energy solutions, decentralized raw material sourcing, disaster prevention and control measures
• Working with suppliers on energy conservation, monitoring potential increase in production costs

Supply Chain Management

Supplier Audits: 23 audits completed in 2021 (100% coverage)

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Conflict-free Minerals Commitment Agreement
• Corporate Social Responsibility Commitment Agreement
• ISO 9001, ISO 14001, ISO 45001 certifications
• Compliance with RoHS Directive and REACH Regulations
• Procurement from GRI-certified smelters

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather disasters
• Typhoons, rainstorms, flooding

Transition Risks

• EU carbon border tax
• Increased operational costs due to regulations

Opportunities

• Increased demand for low-carbon products
• Government incentives for renewable energy

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Global Compact, UN Sustainable Development Goals (SDGs), Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, TCFD, SASB

Certifications: ISO 9001, ISO 14001, ISO 45001, SONY GP

Third-party Assurance: TÜV NORD Taiwan (AA1000 Assurance Standard V3 Type 1 Moderate Level)

UN Sustainable Development Goals

• Goal 3: Good health and well-being
• Goal 4: Quality education
• 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
• Goal 17: Partnerships for the goals

FocalTech's initiatives contribute to these SDGs through various programs and practices related to employee well-being, talent development, energy efficiency, sustainable supply chain, and climate action.

Sustainable Products & Innovation

• ICs with lower power consumption and smaller wafer size

Awards & Recognition

• 2017 Corporate Governance Evaluation – Best Progress Award
• 2017 Deloitte Technology Fast 500
• 2018 13th “China Core” Outstanding Technology and Innovative Product Award
• 2018 2017 China’s Top 10 IC Design Enterprises
• 2019 Accreditation for Healthy Workplace-Badge of Accredited Health Promotion
• 2019 Exercise Enterprise Certification Award
• 2019 Solidarity Award
• 2019 Microsoft Intelligent Edge Partner
• 2019 Outstanding Partner Award
• 2020 Best Technical Support Team
• 2021 Top 500 Outstanding Export/Import Business
• 2021 Guangdong Engineering Technology Research Center of Touch and Display Integrated Chip Core Technology
• 2021 Best Financially Managed Company (GSA)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Innovative Value Breakthrough
• Sustainable Prosperity with Partners
• Green Environment
• Friendly Corporate Workplace
• Giving Back to Society

Environmental Achievements

• 20% reduction in electricity consumption in 2023 compared to 2022

Social Achievements

• NT$53 million allocated as employee welfare subsidies
• Zero occupational injuries in 2023
• Average customer satisfaction score of 8.44 in 2023

Governance Achievements

• Ranked in the top 6% to 20% among TWSE listed companies for seven years in the Corporate Governance Evaluation
• Independent Directors account for 50% of the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Achieving net-zero emissions by 2050
• Improving IC design efficiency with AI
• Geopolitics, market changes, and concentration of end products
• Rising raw material costs due to climate change and carbon tax
• Lack of R&D staffing

Mitigation Strategies

• Implementing energy-saving measures
• Investing in a digital platform for carbon emission management
• Formulating countermeasures to minimize the impact of risks
• Reducing the use of raw materials and increasing local procurement
• Increasing R&D staffing

Supply Chain Management

Supplier Audits: 100% of suppliers in 2023

Responsible Procurement

• Supplier Honesty and Integrity Commitment
• Corporate Social Responsibility Commitment
• ISO 9001 certification
• ISO 14001 certification
• Compliance with RoHS and REACH regulations
• Sourcing raw materials from RMI-certified smelters

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in rainfall patterns
• Extreme changes in climate patterns
• Average temperature rises
• Sea-level rises

Transition Risks

• Increased carbon pricing
• Strengthening emissions reporting obligations
• Requirements and regulations for existing products and services
• Replacement of existing products and services with low-carbon commodities
• Costs of low-carbon technology transition
• Rising raw material costs
• Customer preferences

Opportunities

• Reduction in water consumption
• Opting for more efficient suppliers
• Recycling
• Improving green energy used in buildings
• Adopting more efficient transportation methods
• Adopting new technology
• Development of R&D and innovation in products and services
• Adopting low-carbon energy
• Shift to decentralized energy

Reporting Standards

Frameworks Used: GRI Standards (GRI Universal Standards 2021), SASB standards, TCFD framework, UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 26262 (expected 2024), ISO 14064-1 (expected 2024), ISO 27001 (expected Q4 2024)

Third-party Assurance: DQS Taiwan Inc.

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• 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
• Goal 17: Partnerships for the Goals

Alignment with SDGs through initiatives related to employee well-being, talent cultivation, energy efficiency, corporate governance, product quality, supply chain sustainability, climate change mitigation, and community investment

Sustainable Products & Innovation

• FT7780 automotive Bridge IC with local dimming technology
• FT3681 POLED Touch IC with low power consumption
• FT3383 smaller touch IC packaging

Awards & Recognition

• 2022 Taiwan Corporate Sustainability Award (TCSA) - Gold Award
• Best Financially Managed Company from the Global Semiconductor Alliance (GSA)