Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Occupational Safety
• Employee Well-being
• Corporate Governance
• Ethical Corporate Management
• Human Rights

Environmental Achievements

• Obtained ISO 14001 Environmental Management System certification.
• Implemented energy-saving and carbon reduction measures (1% annual goal).
• Promoted waste reduction and recycling initiatives.

Social Achievements

• Implemented employee welfare programs (group insurance, birthday gifts, health checks, annual bonus, etc.).
• Provided continuing education and training (1,590 hours of internal training and 123 hours of external training in 2021).
• Maintained a safe work environment (no occupational accidents in 2021), obtained ISO 45001 certification.
• Female staff accounted for 46.6%, and female senior executives accounted for 20% by the end of 2021.

Governance Achievements

• Established an Audit Committee.
• Implemented ethical corporate management policies and programs.
• Established a whistleblowing system.
• Complied with relevant laws and regulations at home and abroad.

Climate Goals & Targets

Environmental Challenges

• Supply chain chaos, global logistics disorder, and comprehensive price increases due to the pandemic.
• Material shortages in the market.
• Exchange rate fluctuations.

Mitigation Strategies

• Adjusted procurement and production strategies.
• Strengthened market focus on targeted vertical applications.
• Improved information management systems.
• Managed inventory through information platform.
• Adjusted product pricing to account for exchange rate fluctuations.
• Engaged in foreign exchange hedging operations when necessary.

Supply Chain Management

Responsible Procurement

• Prioritizes suppliers meeting environmental protection requirements (RoHS).

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (operational interruption).

Transition Risks

• Energy supply problems.

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: ISO 9001, ISO 14001, ISO 28000, ISO 45001

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Green products conforming to WEEE guidelines.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced water use by 31.7% in 2022 compared to 2021
• Reduced waste disposal by 18.4% in 2022 compared to 2021

Social Achievements

• Maintained a female staff percentage of 46.77% and female senior executives at 20% by the end of 2022
• Provided 1,014 hours of internal training and 472 hours of external training in 2022
• No occupational accidents in 2022

Governance Achievements

• Established a corporate governance supervisor on November 9, 2022
• Implemented a spokesperson and deputy spokesperson system

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions due to the Russia-Ukraine war, China's zero-COVID policy, and the US-China tech war
• Sluggish global economy in 2023 due to rising interest rates
• Increased carbon emissions in 2022 due to plant expansion

Mitigation Strategies

• Actively promoted application in new markets and improved product mix
• Integrated innovative designs, technologies, and experiences of strategic partners
• Invested in R&D of high-end multi-core computing processors and high-speed Ethernet
• Developed alternative sourcing strategies
• Implemented energy saving and carbon reduction measures (1% annual goal)

Supply Chain Management

Supplier Audits: Regular supplier evaluations, including environmental and social issues since 2023

Responsible Procurement

• Requires suppliers to provide test reports and self-declaration documents meeting environmental protection requirements
• Requires suppliers to comply with EU RoHS and REACH specifications

Climate-Related Risks & Opportunities

Physical Risks

• Operational interruption due to natural disasters

Transition Risks

• Energy supply problems due to climate change

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, TL 9000, ISO 14001, ISO 28000, ISO 45001

Third-party Assurance: Third-party assurance provider mentioned but not named

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Social Inclusion

Environmental Achievements

• Completion of ISO 14064-1:2018 GHG Inventories and third-party verification and assurance.
• Water consumption in 2023 decreased by 22.22% compared to 2022.

Social Achievements

• Donated approximately NT$1.36 million to the ESG Innovation Research Center and provided scholarships for talent development.
• Average training hours per employee were 6.89 hours.
• Zero occupational accidents for the entire year.
• The participation rate for the annual employee health check was 85.6%.

Governance Achievements

• Established overseas backup production capacity in the German subsidiary and start production of existing products according to customer demand.
• Appointed dedicated information security supervisor and analyst.
• Implemented climate risk governance by referring to TCFD (Task Force on Climate-related Financial Disclosures) guidelines.

Climate Goals & Targets

Environmental Challenges

• Weak demand in global end markets and prolonged inventory cycle time in industrial supply chains due to international inflation, rising interest rates and lower-than-expected post-pandemic economic performance in China.
• Ongoing conflicts such as the Russian-Ukrainian war and the Israeli-Palestinian conflict continue to have a negative impact on global economic development and social stability.
• Increased pricing of GHG emissions
• Enhanced emissions-reporting obligations
• Mandates on and regulation of existing products and services
• Substitution of existing products and services with lower emissions options
• Costs to transition to lower emissions technology
• Changing customer behavior
• Changes in precipitation patterns and extreme variability in weather patterns
• Increased severity of extreme weather events such as cyclones and floods
• Increased cost of raw materials
• Rising mean temperatures
• Rising sea levels
• Supply chain material shortage

Mitigation Strategies

• Implementation of ISO 14064-1 GHG Inventories and setting and enforcement of emission reduction targets.
• Promotion of energy conservation and carbon reduction projects, short-term assessment of energy storage systems and renewable energy sources, and implementation of clean energy concepts and increased usage of renewable energy.
• Implementation of ISO 45001 Occupational Health and Safety Management System operations and enhancement of workplace safety through the adoption of risk-based thinking.
• Administration of occupational health and safety training for new hires and active employees.
• Stipulation of on-site operation directions,“Ergonomic Hazard Prevention Guidelines”,“Abnormal Workload-Triggered Disease Prevention Guidelines”,and“Occupational Health and Safety Work Principles”complemented with machinery-related training, engineering improvements, or provision of PPE to ensure effective control of hazards.
• Internal professional competency training, creation of multiple external recruitment channels, and cooperation with academic circles in technology development and talent cultivation to counteract manpower shortages resulting from industry and environmental factors.
• Adoption of“Ethical Corporate Management Best Practice Principles”and“Procedures for Ethical Management and Guidelines for Conduct”to implement relevant operations.
• Formulate information security policies and implementation procedures.
• Establish an internal information security organization.
• Strengthen the software and hardware architecture, such as: Fully deploy endpoint detection and response software (EDR), adopt multi-factor authentication (MFA), import encryption software, etc.
• Conduct asset risk management, vulnerability scanning and recovery plan drills regularly.
• Continue to implement the system backup mechanism.
• Conduct employee education and training to improve information security risk awareness.
• Network security/authority controls are reviewed regularly.
• Every year regularly evaluates supplier quality, and since 2023, the content of supplier evaluation has added environmental and social issues.
• The Company regularly tracks whether suppliers have obtained the certification of environmental protection and health, safety and environment and complied with the labor rights issues.
• Regularly interview suppliers quarterly to learn the current status of suppliers, share industry information, and provide single-quarter performance evaluations for review and improvement.
• In the future, we plan to gain a firm grasp of management approaches and the degree of implementation of sustainable development by suppliers.
• Continue to encourage suppliers to prioritize management ethics, safeguard labor rights, emphasize work environments, safety, and health, and develop materials and processes with greatly diminished environmental impacts.

Supply Chain Management

Supplier Audits: 18 out of 20 key suppliers (90% completion rate)

Responsible Procurement

• Supplier management system requiring adherence to supply chain management policy, including RBA Code of Conduct (labor, health and safety, environment, business ethics, and conformity management system)

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events such as cyclones and floods
• Changes in precipitation patterns and extreme variability in weather patterns
• Rising mean temperatures
• Rising sea levels

Transition Risks

• Increased pricing of GHG emissions
• Enhanced emissions-reporting obligations
• Mandates on and regulation of existing products and services
• Costs to transition to lower emissions technology

Opportunities

• Reduced water usage and consumption
• Use of more efficient production and distribution processes
• Use of recycling
• Move to more efficient buildings
• Use of more efficient modes of transport
• Use of lower-emission sources of energy
• Development and/or expansion of low emission goods and services
• Use of new technologies
• Participation in carbon market
• Shift toward decentralized energy generation

Reporting Standards

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

Certifications: ISO 9001, TL 9000, ISO 14001, ISO 28000, ISO 45001, ISO 14064-1

Third-party Assurance: GREAT Certification (AA1000 Type I)

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 5
• Goal 8
• Goal 9
• Goal 10
• Goal 13
• Goal 16

CASwell incorporates SDGs into the company’s business strategies, focusing on aspects like fair compensation, employee training, gender equality, GHG emissions, and supplier collaboration for improved workplace environments and employee compensation.