Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by over 18 million KWh, resulting in RMB 13.15 million in savings through 93 energy-saving projects.
• Achieved significant water savings through various projects, exceeding original targets.
• Reduced waste generation through product design optimization and recycling initiatives.
• Successfully completed the 12th Five-Year target in Kunshan and obtained ISO50001 certification in four companies.

Social Achievements

• Maintained a fair and open employment opportunity, with 59% of employees being female.
• Implemented a comprehensive employee training program, providing over 2,534,150 training hours.
• Provided various employee support programs, including financial assistance and recreational activities.
• Established a mature human resources management system and exit control process to minimize labor disputes.

Governance Achievements

• Established a voluntary disclosure mechanism to promote anti-corruption and honesty.
• Successfully defended four intellectual property disputes.
• Implemented a Project Confidentiality and Security Control System to protect customer data.

Climate Goals & Targets

Environmental Challenges

• High employee turnover rate in Vietnam due to agricultural season and family commitments.
• High employee turnover rate in Mexico due to production scale reduction and layoffs.
• Managing exhaust gas emissions from production processes.
• Managing wastewater discharge from production and domestic sources.

Mitigation Strategies

• Implemented corrective and preventive measures to address substandard matters in environmental, occupational safety, and health.
• Established and maintained exhaust gas collecting and conveying pipelines.
• Optimized wastewater treatment processes and implemented water-saving initiatives.
• Implemented a comprehensive safety management system, including regular inspections and accident prevention training.

Supply Chain Management

Responsible Procurement

• Supplier Quality Management Procedure
• Green Supplier Selection and Assessment Control Process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27, Guidelines for Environmental, Social and Governance Reporting issued by the Stock Exchange of Hong Kong Limited

Certifications: GB/T 19001 — ISO 9001, ISO/ TS16949, ISO14001, IECQ_ HSPM QC080000, OHSAS18001, ISO14064-1, ISO50001

Awards & Recognition

• Suzhou Mummy Inn Demonstration Site (Kunshan plant)
• Jiangsu Province May 1 female pacesetter Position (Kunshan Women Working Committee)
• Advanced Blood Donation Group (FIT Fuding Company)

Environmental Metrics

ESG Focus Areas

• Emissions management
• Greenhouse gas emissions
• Waste management
• Energy management
• Water resources management
• Product sustainability
• Human rights
• Green procurement
• Responsible investment
• Employment and labor standards
• Compensation and incentive system
• Employee care and welfare
• Occupational health and safety
• Employee training and development
• Supply chain management
• Safety production
• Quality control
• Customer service
• Intellectual property protection
• Environmental, social and governance
• Compliance management and anti-corruption

Environmental Achievements

• Achieved 5% energy savings in Mainland China factories.
• Shenzhen and Kunshan factories obtained UL2799 Platinum Certification (Zero Waste to Landfill).
• Reduced energy density by 3.81% and GHG emissions density by 46.80% compared to 2021.
• Renewable electricity represented 49.8% of total electricity consumption.
• Planted 13,825 trees, removing 318 tons of CO2 equivalent.
• Reduced industrial wastewater discharge density by 39.06% and domestic wastewater discharge density by 14.95% compared to 2021.
• Achieved “zero discharge” of nickel-containing water in Kunshan factory.
• Belkin achieved a 59% single-use plastic packaging reduction since 2019.

Social Achievements

• Significant improvement in ESG management compared to last year.
• A rating in Hang Seng Corporate Sustainability Index Series.
• Various honors and awards in product quality management.
• Mainland China factories achieved 0.30% employment rate for disabled workers.
• RMB 2 million invested in supporting employees (Mainland China).
• 17,232 employees received anti-corruption training (Mainland China, Taiwan, Vietnam, SSI, SS Precision).
• 742 employees of Belkin attended anti-corruption training.

Governance Achievements

• Established ESG Committee in 2020.
• Established SER Committee with sub-committees.
• Rated as low ESG risk by Sustainalytics.
• No material non-compliance cases against anti-corruption related laws and regulations.
• Implemented a whistleblowing policy.

Climate Goals & Targets

Environmental Challenges

• Inadequate emission management system risk
• ESG regulatory risk
• Untimely monitoring of emission data risk
• Information transmission and communication risk
• Compliance operation risk
• External regulatory risk
• Hazardous waste management risk
• Development of emission reduction projects
• Improper ESG governance structure risk
• Product quality risk
• Increased fuel consumption in Vietnam due to leased vehicles.
• Extreme weather events affecting logistics and assets.

Mitigation Strategies

• Established ESG Emergency Reporting Mechanism.
• Set ESG targets and plans.
• Implemented energy saving and emission reduction programs.
• Participated in zero waste landfill programs and UL Certification.
• Implemented a “3+3 Strategy”.
• Strengthened patent strategy.
• Established a comprehensive quality control system.
• Strengthened anti-corruption policies and optimized anti-corruption management system.
• Implemented various employee caring activities.
• Promoted employee diversity.
• Conducted regular safety audits.
• Formulated contingency plans for emergency preparedness.
• Implemented water-saving projects.
• Introduced advanced sewage treatment systems.
• Implemented VOCs reduction measures.
• Initiated carbon compensation measures (planting trees).
• Aligned climate-related disclosure with TCFD recommendations.
• Established “Major Climate Response Management Group”.

Supply Chain Management

Supplier Audits: 100% completion rate in Mainland China.

Responsible Procurement

• Supplier Code of Conduct
• Green Supplier Selection and Evaluation Control Operation Measures
• Regular social responsibility assessments (Belkin)

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Rainstorms
• Snowstorms
• Floods
• High temperatures
• Acid rain
• Heat stress
• Water stress
• Extreme weather events affecting logistics, assets, and business downtime

Transition Risks

• Market demand change
• Carbon pricing
• Energy price change
• Temperature changes

Opportunities

• Renewable energy opportunities
• Increased demand for low-carbon products (EVs)
• Development of electric vehicles

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 45001, ISO 14064-1, ISO 50001, ISO 26262, UL2799 Platinum

Sustainable Products & Innovation

• E-bike
• Energy efficient digital consumer goods and digital infrastructure

Awards & Recognition

• Improvement of Quality Management Award by Huawei
• Design Concept winner in the Red Dot Award
• Apple Quality Service Excellence Team Award
• Microsoft honor of quality
• Honor's Sail Award
• Innovation of the Year Award - Outstanding Contribution to Patent Innovation (Diancha factory)
• The First Batch of Intelligent Property Rights Enterprises in Suzhou Province to Nurture Projects with Industrial Advantages (Diancha factory)
• Kunshan Intellectual property Protection Standard Company (Diancha factory)
• National Intellectual property Rights Advantage (Diancha factory)

Environmental Metrics

ESG Focus Areas

• Labour practices
• Environment
• Community involvement and development
• Climate Change & Decarbonization
• Renewable Energy & Energy Efficiency
• Employee Welfare & Talent Development
• Waste Management & Circular Economy
• Sustainable Supply Chain
• Emissions management
• Energy management
• Water management
• Waste management
• Climate change
• Carbon management
• Product sustainability
• Application of clean technology and renewable energy
• Diversity, equity and inclusion
• Human rights in supply chain and workforce
• R&D innovation
• Talent attraction and retention
• Supply chain management and responsible procurement
• Quality control and product governance
• Customer relationship management
• ESG governance and risk management
• Anti-corruption and business ethics
• Compliance
• Data privacy and security
• Community engagement

Environmental Achievements

• Achieved 34.26% renewable energy ratio, a 6.18% increase from 2022.
• Shenzhen, Kunshan Diancha and Huai'an sites achieved Zero Waste to Landfill Platinum accreditations (UL 2799).
• Huai'an site achieved significant reduction in air emissions through source control (low VOC raw materials).

Social Achievements

• Implemented comprehensive employee wellness programs and regular health and safety training.
• Appointed a female Non-executive Director to the Board, achieving 12.5% gender diversity.
• 92.2% retention rate for employees at division level 4 or above.
• Mainland China sites achieved 100% anti-corruption training target for key personnel.

Governance Achievements

• Established ESG Board Committee and Social and Environmental Responsibility Committee.
• Initiated linking executive remuneration with ESG performance.
• Applied for a 5-year sustainability-linked loan.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate-related risks (extreme weather events, energy price changes, carbon pricing)
• Transition risks (regulatory changes, market shifts)
• Overtime work in Mainland China and Vietnam

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented comprehensive risk assessments and mitigation plans for climate-related risks.
• Introduced ETS and carbon tax related content in SER meetings.
• Exploring lower reliance on non-renewable energy.
• Implementing monitoring system for working hours.

Supply Chain Management

Supplier Audits: 195 suppliers audited in 2023 (QSA, GP, and SER)

Responsible Procurement

• Green supplier selection and evaluation.
• Social Responsibility Commitment Letter.
• Compliance with RoHS and REACH standards.
• Belkin's Supplier Code of Conduct (aligned with RBA standards).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, cyclones, droughts, heatwaves, wildfires)

Transition Risks

• Carbon pricing (ETS and carbon tax)
• Energy price changes

Opportunities

• Market demand change for EV mobility solutions
• Renewable energy

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Standards, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001, IATF 16949, ISO 26262, AS9100D, UL 2799, ISO 27001, QC080000

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives related to renewable energy, waste reduction, emissions reduction, and sustainable supply chain contribute to these goals.

Sustainable Products & Innovation

• 800G high-speed connector with recycled materials.
• FIT E-bike series with digital upgrades.
• PFAS-free plastics by SSI.

Awards & Recognition

• Hang Seng Corporate Sustainability Index A rating.
• Sustainalytics low-risk rating.
• S&P Global rating above industry mean.
• Red Dot Design Award.
• Walmart Project Gigaton Giga-Guru status (Belkin).