Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmentally friendly product design
• Carbon emission reduction
• Process management
• Energy and resource management
• Supply chain management
• Labor rights
• Health and safety
• Anti-slavery
• Corporate governance

Environmental Achievements

• 19 units earned the “Green Factories” national certification
• Reduced carbon emissions by 24% compared to 2015
• 90%+ of key suppliers completed ISO 14064-1 carbon inventory
• 99.02% waste conversion rate at Guanlan Factory

Social Achievements

• Implemented merit-based promotion and remuneration programs
• Promoted workplace diversity
• Offered employment opportunities to local workforce
• 88.6% reinstatement rate following parental leave
• 99.5% retention rate following parental leave
• More than 200,000 counseling sessions handled by Employee Care Center with a 93% case closure rate
• Labor Union signed the “Foxconn Technology Group Collective Agreement (2019 version)”

Governance Achievements

• Established the Group’s CSR Committee in March 2007
• Established a team of more than 1,000 CSR professionals
• 100% average attendance rate for Audit and Compensation Committees

Climate Goals & Targets

Environmental Challenges

• 7.31% year-over-year increase in power consumption (mainly due to operational growth and inclusion of data from newly constructed factories)
• China Labor Watch reports alleging unlawful practices by suppliers (e.g., unlawful amount of dispatch workers, unlawful overtime, improper use of teenage interns)
• South China Morning Post report on worker protests over alleged unpaid bonuses

Mitigation Strategies

• Proactively proposed energy-saving measures including energy-saving targets, energy management systems, transformation of energy-saving technologies, energy audits, and development and usage of clean energy
• Formulated goals to reduce carbon emissions in accordance with China's Work Plan for Controlling Greenhouse Gas Emission
• Encouraged 165 suppliers to carry out energy & carbon reduction actions and projects
• Set up a supplier CSR management platform to quantify and diagnose supplier risks
• Signed letters of commitment with suppliers to ensure fairness, impartiality, and openness in the transaction process
• Required suppliers to comply with Foxconn’s code of conduct and social environmental policy

Supply Chain Management

Supplier Audits: 46 on-site audits for key suppliers

Responsible Procurement

• Signing letters of commitment with suppliers
• Requiring suppliers to comply with Foxconn’s code of conduct and social environmental policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD (planned for implementation in 2020)

Certifications: OHSAS 18001, CNS15506, ISO 14064-1 (for suppliers)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Formally announced its response to Climate Action 100+ (CA100+) in November 2020.
• Announced its contribution and determination to the 1.5ºC goal, to achieve net-zero greenhouse gas emissions by 2050.
• Submitted a 1.5ºC commitment to the Science Based Targets initiative (SBTi) in January 2021.
• Signed a memorandum of cooperation with UL to promote the use of Shenzhen Longhua Park as a demonstration site for the "Zero Waste Park"
• Launched self-made face mask production lines, exceeding 240 million units within a year.

Social Achievements

• Continued transparent disclosures and promoted the establishment of the "Sustainable Management = EPS + ESG" corporate culture.
• Launched self-made face mask production lines, contributing surplus production capacity to communities.
• Provided 420,984 hours of training with training fees reaching up to NT$6,286,311 in 2020.

Governance Achievements

• 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 an innovative factory digital management system, resulting in the Hon Hai Chengdu campus being selected as a Lighthouse factory for the World Economic Forum.
• Established an Audit Committee and Compensation committee.

Climate Goals & Targets

Environmental Challenges

• The worst environment in the past year due to the pandemic, increased resistance on the flow of personnel, and forced transformation of face-to-face customer interactions.
• Global supply chain disruptions due to the pandemic.

Mitigation Strategies

• Implementation of the “3+3” new industry, technology fields.
• 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 a set of innovative factory digital management system.
• Formed alliances with top companies such as SAP and Microsoft.

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"
• "2019 2020 Taiwan Corporate Sustainability Awards"
• "Sustainability Excellence Award 2020"
• "2020 Chinese Enterprises ESG Best Practice"
• "Excellent ESG Cases of Chinese Enterprises White Paper"
• "2020 Taiwan Sustainability Enterprise" Gold Award
• "Outstanding Sustainable Resilience Award"

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Implemented 1,877 energy-saving projects with total carbon reductions of 306,204 tCO2e.
• Achieved actual energy-saving rate of 5.74%
• Longhua Factory obtained UL 2799 Gold-Level Certification
• Assisted a cumulative 123 suppliers in implementing carbon inventories and 59 suppliers in completing verification, resulting in carbon reductions of 225,500 tCO2e from 2021 to 2022.
• 12 key electronics suppliers signed a renewable energy agreement committing to use 100% renewable energies to produce Group products.
• Assisted a cumulative 10 suppliers in obtaining UL2799 Zero Waste to Landfill certification.

Social Achievements

• Employee salaries and benefits were approximately 333 billion NTD, and we hosted 24,823 employee activities attended by 2.114 million participants.
• 1,015 babies born to Hon Hai employees benefited from the Group's "Childcare subsidies for 0 to 6 year olds program", more than 470 million NTD have been paid out in subsidies over the past three years.
• Invested a total of 151 million NTD in Foxconn University and provided 69.49 million hours of training, resulting in an average of 75.05 hours of training for each Group employee, helping 1,873 employees graduate with undergraduate degrees and above.
• Hosted health and safety training courses for employees and contractors which were attended by 754,906 participants, as well as 121 health promotion activities.
• Invested a total of 118 million NTD in social welfare projects focused on supporting the disadvantaged, rural education, technology education, diversified education, and support for physical education, with a focus on community contributions.
• Assisted and supported 32 suppliers in improving environmental violations; and assisted and supported 148 suppliers with high environmental impacts to report and disclose Pollutant Release and Transfer Register (PRTR) data.

Governance Achievements

• Revenues reached 6.62 trillion NTD, making us Taiwan's biggest company in terms of revenues, equivalent to 29% of Taiwan's GDP.
• Taiwan's second biggest company in terms of market value.
• Group operations supply nearly 40% of electronic products worldwide.
• Rapidly launched two more self-developed EV models and our first self-developed mass-produced EV.
• Accumulated a total of 61,489 global patents, ranking at #17 in the world in terms of patent numbers.
• Provided intellectual property incentives to encourage innovative development from our colleagues, distributed 16.34 million NTD in incentives to 4,561 people, and utilized our patent start-up program to support collaborations with two start-up companies.
• Taoyuan Namkam Factory obtained ISO 22301 Business Continuity Management System verification.
• Obtained ISO 37001 Anti-Corruption Management System verification.
• Obtained ISO27001 Information Security Management System verification and hosted 468 information security training courses.

Climate Goals & Targets

Supply Chain Management

Supplier Audits: 39 audits in 2022

Responsible Procurement

• Required all suppliers to strictly comply with local environmental protection regulations, launched a green procurement policy that required all suppliers to fully establish self-assessment procedures for RoHS 10 substances, and banned discharges of untreated hazardous materials and supplies.
• Established a management system for chemicals and hazardous substances to assess and track chemical usage, ensuring that said chemicals do not cause environmental or human damage.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core option, SASB Standards

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• 1
• 3
• 4
• 6
• 7
• 8
• 9
• 12
• 13
• 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. Our six main ESG strategies respond to the SDGs, and we work with our upstream suppliers, corporate businesses, and downstream customers to implement the SDGs and work jointly toward our 2030 Agenda.

Sustainable Products & Innovation

• electric vehicles

Awards & Recognition

• Sustainalytics (Global) 10.4 Low Risk
• MSCI ESG Rating (Global) B Grade
• Forbes Magazine (USA) Ranked at #94 in the world's top 2000 companies
• Clarivate Analytics (Global) award for the sixth consecutive year
• Constituent of Taiwan ESG Index
• Taiwan Corporate Sustainability Award (Taiwan) Received eight awards, including the Top Ten Sustainability Model Enterprises Award in Taiwan and Sustainability Report Platinum Award
• Common Wealth Magazine Sustainable Citizen Award (Taiwan)
• Sustainability Reporting- Gold Award
• Two Best Practice Awards, Environmental and Governance
• Ranked at #25 in Large Enterprise category Asia-Pacific Sustainability Action Awards
• Received 7 awards
• Fortune Magazine Major human resource evaluations Received Top 100 Global Innovators
• World Economic Forum (WEF)
• FTSE4Good
• FTSE Russel Global Corporate Sustainability Award
• Obtained 5 Global Lighthouse awards
• Institute of Public and Environmental Affairs (China) Received first rank in Green Supply Chain
• CITI Evaluation for the Greater China region Received second rank in the CATI Evaluation Report (IT Industry)
• Fortune Magazine Ranked at #20 in the world's top 500 companies
• CSR & ESG Award under the Electronic Technology Industry category by Global Views Monthly (Taiwan) Top prize
• Received awards from 10 human resource evaluation institutes
• Institutional Investor (Asia) Received seven awards, including our Chairman Young Liu awarded No 1 for Best CEO, No 1 for Best IR Team and Best IR Professional, No 2 for Best ESG