Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Formally announced its response to Climate Action 100+ (CA100+) in November 2020, requiring all affiliated plants to comply with the local government’s carbon emission policy.
• Announced its contribution and determination to the 1.5ºC goal, to achieve net-zero greenhouse gas emissions by 2050.
• Submitted an ambitiously stringent 1.5ºC commitment to the Science Based Targets initiative (SBTi) in January 2021.
• Signed a memorandum of cooperation with international certifier UL, jointly promote the use of Shenzhen Longhua Park as a demonstration site for the "Zero Waste Park"
• Successive launch of self-made face mask production lines, exceeding 240 million units within a year.

Social Achievements

• Launched self-made face mask production lines in Taiwan, China, India, Hungary, the United States, and Mexico, contributing surplus mask production capacity to assist communities.

Governance Achievements

• Internal meeting of senior managers to instill the strengthening of corporate governance thinking and implementation, and implementation of key topics of “Division of Labor, Sharing, Profit-making, and Elimination of Fraud”.
• Successfully established a set of innovative factory digital management system, resulting in Hon Hai Chengdu campus being selected as one of the Lighthouse factories for the World Economic Forum.

Climate Goals & Targets

Environmental Challenges

• The worst environment in the past year due to the ravaging pandemic, increased resistance on the flow of personnel, and forced transformation of decades-long habitual face-to-face with customers.
• Opaque information on existing electric vehicle manufacturer platforms, introducing development difficulties in optimizing and finding a suitable match with these manufacturers.

Mitigation Strategies

• Increased adoption of digital tools to service customers worldwide and keep factories connected globally.
• Held more than 160 global pandemic prevention and safety related events; established new standards of production safety communication mechanisms.
• Established the MIH Alliance, an open platform to provide enough information for partners worldwide to develop related software and hardware.

Supply Chain Management

Responsible Procurement

• Requires suppliers, manufacturers and customers to sign “Partner Commitment” and strictly implement high-standard anti-corruption policies.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 45001

Third-party Assurance: British Standards Institution (Taiwan) for 2019 CSR Report

Awards & Recognition

• Clarivate Analytics "Top 100 Global Innovators" (4 consecutive years)
• "2019 2020 Taiwan Corporate Sustainability Awards" (2 consecutive years)
• British Standards Institute (“BSI”) "Sustainability Excellence Award 2020"
• "2020 Chinese Enterprises ESG Best Practice"
• "Excellent ESG Cases of Chinese Enterprises White Paper"

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Submitted the SBTi Commitment Letter and set a carbon reduction target for net zero greenhouse gas emissions by 2050 (21% by 2025, 42% in 2030, and 63% in 2035).
• Plans to obtain at least five gold certifications for Zero Waste to Landfills.

Social Achievements

• Actively strive for talent retention and attach great importance to the safety regulations of front-line employees.
• Enhance labor policies to further improve standards for employee rights and care.

Governance Achievements

• Board is majority independent; female representation reached 22%.
• Completed external evaluation of the performance of the board of directors.
• Passed the ISO 37001 anti-bribery management system certification.

Climate Goals & Targets

Environmental Challenges

• Disruptions caused by the pandemic and rising inflation.
• Seasonal volatility and geopolitics in the ICT industry.
• Impact of the pandemic on the supply chain.
• Cycle of interest rate hikes initiated by the US Federal Reserve.

Mitigation Strategies

• Leveraging its scale, diversified customers and products, and execution to overcome challenges.
• Strengthening customer relationships and responding to customer and market needs in a timely manner.
• Maintaining flexibility and continuing global deployment.
• Implementing sustainable development into all R&D and mass production processes to achieve the goal of carbon reduction and green manufacturing.
• Actively proposing corresponding strategies to reduce risks related to changes in the legal landscape.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct
• Supplier sustainability requirements
• ISO 9001, ISO 14001, ISO 45001, QC 080000, ISO 14064 certifications

Climate-Related Risks & Opportunities

Transition Risks

• Increased demand for renewable energy and electricity regulatory restrictions
• Uncertain market information

Opportunities

• Development of energy-efficient products
• Green operation
• Energy management
• Carbon information disclosure
• Green energy fund

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 45001, ISO 37001, ISO/IEC 27001, UL2799

Third-party Assurance: BSI

Awards & Recognition

• 20th in the world in the Fortune Global 500
• Global Views ESG Comprehensive Performance Award (first prize)
• TCSA Top Ten Sustainable Model Enterprise Awards
• TCSA Platinum Award
• GCSA Gold Award for Sustainability Reporting
• Asia Best Employer Award
• Five Hon Hai Best Management Team Awards in Asia

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Smart Innovation
• Diverse Inclusiveness
• Employee Engagement
• Healthy Workplace
• Safety Adherence
• Green Solutions
• Circular Economy
• Business Sustainability
• Beneficial Partners
• Social Contribution
• Win-Win Strategy

Environmental Achievements

• Greenhouse gas categories 1 and 2 decreased by 51.08% compared with the base year of 2020.
• The Group’s energy-saving target for 2023 was 4.5%. The actual energy-saving rate was 5.90%.
• The Group’s total installed renewable energy capacity reached 325.82MW, and the usage of renewable energies reached 5,396.05 GWh and renewable energy usage ratios were 60.96%.
• Invested 2.89 billion NTD in 1,818 energy-saving projects. Total energy savings were 518,847 MWh, equal to total carbon reductions of 309,648 tCO2e, an energy saving benefit of 1.54 billion NTD
• Nanning, Hengyang and Kunshan Campuses received the Platinum-Level UL 2799 Zero Waste to Landfill Certification. Longhua Campus obtained UL 2799 Gold-Level Certification in 2023 and Platinum-Level in June 2024.
• Obtained 21 UL 2799 Zero Waste to Landfill certifications in various locations worldwide

Social Achievements

• Share of women in all management positions achieved 21.55%.
• Invested 148 million NTD in Foxconn University and provided 56.62 million training hours in total.
• 98.6% of employees are union members.
• Conducted 35 RBA Validated Audit Process (VAP) in own operations globally.
• Sustainability employee engagement score achieved 82.
• Hon Hai Education Foundation invested 114.26 million NTD in supporting the community, focusing on helping disadvantaged groups and technology education.
• Held a huge number of social welfare activities among global entities with 186,569 hours of volunteer services.

Governance Achievements

• The Group was awarded the “Top 100 Global Innovators Award” for seven consecutive years.
• The Group was also awarded the Asia IP Elite for eight consecutive years.
• Conducted 26 RBA Validated Audit Process (VAP) among tier-1 suppliers.
• The Group compiled a “Responsibility Standard” , which is to clearly explain the requirements and practices in the CoC and is aligned with RBA
• A total of 186 suppliers completed carbon inventories, resulting in carbon reductions of 484,000 tCO2e from 2022 to 2023.
• The Group conducted the social impact assessment for suppliers with the improvement plan in Human Rights management and the improvement rate of 76%.

Climate Goals & Targets

Environmental Challenges

• Market Risks
• Credit Risk
• Liquidity Risk
• Procurement and sales consolidation
• Information security
• R&D and Technology
• Corporate Image
• Operational Risks
• US-China trade war
• Geopolitical risks
• Suppliers Management
• Occupational Safety and Health
• Chemicals Management

Mitigation Strategies

• Established policies that require companies within the Group to manage the foreign exchange risks of their functional currencies.
• Established credit limits and channels for clients based on credit evaluation mechanisms
• The Group only works with mature financial products that are simple in structure, simply priced, transparent, and have numerous market participants, prices, and competing brokers.
• The Group cooperates with like-minded, high-quality suppliers to manage global economic strategies
• We have established risk assessment guidelines relating to information security risks.
• The Group focuses on establishing leadership in high-tech products by effectively gathering outstanding R&D talents and investing the best R&D resources to achieve continuous development and mass production of advanced technologies and processes.
• The Group focuses on the balanced expansion of all global businesses, assists strategic partners and clients in avoiding risks, and facilitates the global promotion of corporate, social, and environmental responsibilities.
• To prevent risks stemming from losses due to unintentional mistakes, intentional concealment, or damage by internal operating personnel, the Group’s organizational structure is designed in order to avoid personnel from concurrently holding posts in transaction execution, confirmation, and delivery; personnel responsible for evaluation, supervision, and control are drawn from different departments and report to the Board or high-level executives who are either not responsible for transactions or who hold decisional responsibility in their respective departments.
• We timely capture the latest international regulations and conduct in-depth research to improve compliance in the international trade market, actively communicate with the international community, and respond to international trade protection risks.
• We are active in policy influence and positively mitigate the situation and impact. We also enhance the diversification in operating locations, suppliers, etc., to strengthen business continuity.
• Implement due diligence management and do not accept minerals originating from conflict-affected and high-risk areas to realize a conflict-free supply chain.
• We have established an occupational safety and health management system with “Hazard Identification, Risk Assessment and Risk Control Planning Procedures”
• We have established internal rules and regulations to ensure risk control throughout the entire lifecycle and ensure the safe use of chemicals in all aspects to create safer and more reliable products.

Supply Chain Management

Supplier Audits: 26 RBA Validated Audit Process (VAP) among tier-1 suppliers; 186 suppliers completed carbon inventories

Responsible Procurement

• The Group has established procedures for preparing and assuring the sustainability report and incorporated it into the internal control system according to the regulations of the Taiwan Stock Exchange.
• The Group has established a ESG management platform which allows our suppliers to learn about RBA regulations and Group ESG requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Rising average temperatures

Transition Risks

• Changes in existing laws and regulations and the emergence of new climate-related laws and regulations
• Customers’ awareness of environmental protection has increased, and they have different considerations when choosing products or services.

Opportunities

• Development of electric vehicles
• Recycled aluminum

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Standards, TCFD, UNGC, AA1000AS v3

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 14064, ISO/IEC 27001, UL 2799, IECQ QC080000

Third-party Assurance: AFNOR

UN Sustainable Development Goals

• 1
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 12
• 13
• 14
• 15
• 16

The Group utilizes its core capabilities and resources to respond to the SDGs established by the United Nations, which serve as the Group’s objectives for achieving sustainable management.

Sustainable Products & Innovation

• Electric Vehicles (MODEL C, MODEL E, MODEL T, MODEL B, MODEL V, MODEL N)

Awards & Recognition

• SBTi net zero target verification
• 6 Global Lighthouse Awards
• Top 100 Global Innovators Award for seven consecutive years
• Asia IP Elite for eight consecutive years
• CDP - Climate Change (A-), Supplier Cooperation (A), Water Security(B)
• UL 2799 Platinum-Level Certification
• LEED Gold-Level Certification