Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by over 300 tonnes per year through energy saving projects.
• Increased recycled water consumption by 43.68% in 2018, saving 120,000 cubic meters per year.
• Received the “The National Award for Safe, No Disease, and Happy Workplace” award.

Social Achievements

• Provided training to employees totaling 182,965 hours.
• Maintained low single-digit customer complaint PPB (parts per billion) metric.
• Received various awards for QCC (Quality Control Circle) and Kaizen (continuous improvement).

Governance Achievements

• Received an “excellent or five-star” CG rating from the Thailand Institute of Directors (IOD).
• Passed the re-certification as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC).
• Complied with the Principles of Good Corporate Governance for Listed Companies 2012.

Climate Goals & Targets

Environmental Challenges

• Fluctuating exchange rates.
• Growing concerns over the USA/China trade tariff wars.
• 30% of Hana Jiaxing's revenue destined for the USA impacted by trade issues.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Restructured Operations and New Technology organizations for better efficiency.
• Increased focus on assembling devices for non-US destinations and local consumption in China.
• Transfer of high-volume consumer device business from China to Cambodian facility.

Supply Chain Management

Supplier Audits: 100% of suppliers signed acknowledgement and compliance with code of conducts.

Responsible Procurement

• Multiple sources for each raw material
• Fair and transparent supplier selection
• Payment on time
• Supplier code of conduct covering anti-corruption policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSR-DIW Reporting Initiative

Certifications: ISO 9001, ISO/TS 16949, ISO 13485, OHSAS 18001, TIS 18001, IATF 16949

Third-party Assurance: Not disclosed

Awards & Recognition

• ESG 100 honor from the THAIPAT Institute
• CSR-DIW Continuous Award 2018
• The National Award for Safe, No Disease, and Happy Workplace
• Two diamond awards of 2018 Thailand Quality Prize for QCC
• 2018 Thailand Kaizen Award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Human Rights
• Labor Practices
• Fair Operating Practices
• Environmental Management
• Community Involvement

Environmental Achievements

• Reduced electricity consumption by more than 665,000 kilowatt-hours per year and reduced CO2 emissions by over 460,000 Kg CO2e per year at Lamphun plant.
• Reduced electricity consumption by 642,000 kilowatt-hours per year and reduced CO2 emissions by more than 445,000 Kg CO2e per year at Ayutthaya plant.
• Increased recycled water usage by 42.50% in 2019, saving 115,000 cubic meters of water per year.
• Air quality expelled from factories 20% better than regulation.
• Lamphun factories certified as “Green Industry Level 4” or “Green Culture”.

Social Achievements

• Received various awards from 2009 to 2019 for Thailand Quality Prize.
• Hana Semiconductor (Ayutthaya) received an award for supporting persons with disabilities programs for 7 consecutive years.
• Received a gold award for excellent Safety, Occupational Health and Environment in the workplace.
• Provided training to employees totaling 199,780 hours (average 50 hours per person).
• Employee satisfaction survey results of 86%.

Governance Achievements

• Rated “Excellent” in Corporate Governance Rating (CGR) by the Thai Institute of Directors Association (IOD).
• Established anti-corruption policy and program with monitoring process.
• Certified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC).

Climate Goals & Targets

Environmental Challenges

• Downturn in the semiconductor cycle.
• Acceleration of the US-China trade dispute.
• Strengthening of the Thai baht.
• US tariffs impacting China operations.
• Coronavirus (Covid-19) impacting China operations and supply chain.

Mitigation Strategies

• Keeping capital expenditure to a minimum and reducing costs.
• Transferring some operations from China to Thailand.
• Focusing on cost reduction to limit currency effects.
• Transferring US customer accounts to Thailand.
• Focusing Jiaxing operations on local sales.
• Investing in automation to reduce costs.

Supply Chain Management

Supplier Audits: 100% coverage in 2019

Responsible Procurement

• Code of conduct
• Electronic Industry Citizenship Coalition (EICC) Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather

Transition Risks

• Changes in trade policy
• Economic downturns

Opportunities

• Development of energy-efficient products
• Renewable energy projects (solar panels)

Reporting Standards

Frameworks Used: CSR-DIW Reporting Initiative

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO/TS 16949, ISO 13485, ISO 27001 (Hana-AYT), IATF 16949:2016 (Hana Cambodia), ISO 9001:2015 (Hana Cambodia), TL 9000:2016 (Hana Cambodia)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CSR-DIW Continuous Award
• Eco Factory Award
• Eco Excellent Award
• Green Industry Level 4 Award
• Thailand Quality Prize awards
• Thailand Kaizen Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed solar panels (3MWP) on factory roofs in Lamphun and Ayutthaya, resulting in energy savings.
• Implemented over 20 energy reduction projects, saving 3,148,682 kWh and reducing greenhouse gas emissions by 1,571 tons CO2-eq.
• Reduced water consumption through 3R's (Reduce, Reuse, Recycle) initiatives.
• Achieved 87% waste recovery for reuse, exceeding the 80% target.
• Received Green Industry Certification Level 4.

Social Achievements

• Received awards for excellent Safety, Occupational Health and Environment in the workplace.
• Received “The excellent organization that support persons with disabilities” award.
• Provided training to 3,555 employees totaling 160,501 hours (average 57 hours/employee).
• Achieved 97.6% training satisfaction for monthly staff and 96.5% for daily employees.
• Donated to hospitals to support COVID-19 prevention efforts.
• Supported community projects such as school renovations and sustainable vegetable gardens.

Governance Achievements

• Rated “Excellent” in Corporate Governance Rating (CGR) by the Thai Institute of Directors Association (IOD).
• Received ESG100 honor from the Thaipat Institute.
• Implemented anti-corruption policy and program.
• Certified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to material shortages (IC components, lead frames) and pandemic-related lockdowns.
• COVID-19 outbreak in Ayutthaya plant (25% workforce quarantined).
• Increased lead times for equipment, impacting capacity expansion.
• Exchange rate fluctuations (THB and CNY vs. USD).
• Write-down of Credit Suisse Supply Chain Fund (THB 421 million).

Mitigation Strategies

• Close collaboration with suppliers, advance ordering, material liability agreements.
• Vaccination and booster shots for employees, workforce planning, work-from-home arrangements.
• Long lead time equipment orders, process optimization to maximize capacity utilization.
• Hedging USD 120 million using foreign exchange forward contracts.
• Write-down of the remaining balance of the Credit Suisse Supply Chain Fund.

Supply Chain Management

Supplier Audits: Regular supplier audits (self-assessment and site visits)

Responsible Procurement

• Supplier Code of Conduct
• Green Procurement

Climate-Related Risks & Opportunities

Physical Risks

• Floods, storms

Opportunities

• Renewable energy projects
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, UNGC, TCFD

Certifications: ISO 9001, IATF 16949, ISO 13485, ISO 14001, ISO 45001, ISO/IEC 27001

Third-party Assurance: EY Office Limited

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 16

Hana's initiatives contribute to these SDGs through various environmental, social, and governance programs.

Awards & Recognition

• Excellent in Corporate Governance Rating (CGR)
• ESG100 honor
• Rising Star Sustainability Award
• Thailand Sustainability Investment (THSI) list
• CSR-DIW Continuous Awards
• Sustainability Disclosure Acknowledgement Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption from 49,356,176 kWh in 2021 to 47,134,405 kWh in 2023.
• Reduced water withdrawal from 335,635 cubic meters in 2021 to 332,449 cubic meters in 2023.
• Reduced GHG emissions from 23,865 metric tons of CO2e in 2022 to 23,773 metric tons of CO2e in 2023. Increased renewable energy electricity purchased for consumption from 0 kWh in 2021 to 3,226,245 kWh in 2023.
• Reduced waste generation from 637.9 kg in 2021 to 479.48 kg in 2023.

Social Achievements

• Implemented employee training programs, increasing average training hours per employee from 45 hours in 2021 to 58 hours in 2023.
• Maintained low lost time injury incidents (2 in 2021 and 2022, 0 in 2023).

Governance Achievements

• Established a Corporate Governance and Sustainability Committee.
• All Board of Directors participated in training programs.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Asst. Prof. Dr. Nathiya Kreetachat and Associate Professor Dr. Saksit Imman Dr.Wanawan Pragot, and Asst. Prof. Dr. Nopparat Suriyachai, SEEN School of Energy and Environment University of Phayao

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption from 49,356,176 kWh in 2021 to 47,134,405 kWh in 2023
• Increased renewable energy usage from 0 kWh in 2021 to 3,226,245 kWh in 2023
• Reduced water consumption from 335,635 m³ in 2021 to 332,449 m³ in 2023
• Reduced total waste from 637.9 kg in 2021 to 479.48 kg in 2023
• High percentage of waste reused/recycled (96.82% in 2021, 98% in 2023)

Social Achievements

• Implemented employee training programs, with an average of 45-58 training hours per employee per year (2022-2024)
• Low employee turnover rate (12.68% in 2021, 12.77% in 2023)

Governance Achievements

• Established a sustainability policy and corporate governance policy
• Maintained high board meeting attendance rates (100%)
• Maintained high audit committee meeting attendance rates (100%)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Asst. Prof. Dr. Nathiya Kreetachat and Dr.Wanawan Pragot, SEEN School of Energy and Environment University of Phayao (2023)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed