Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate governance
• CSR realization
• Integrity and Professional Services
• Creating a friendly and happy workplace environment
• Care for sustainable environmental development

Environmental Achievements

• Reduced total GHG emissions by 8% compared to 2020
• Reduced total electricity consumption by 4% compared to 2020
• Reduced fuel use by company cars by 13% compared to 2020
• Reduced total water consumption by 13.6% compared to 2020
• Assisted in regional domestic sewage recycling at A7 Water Recycling Center in Taoyuan: 4,000 CMD
• HQ employee canteen passed the Green Dining Guide (GDG) certification

Social Achievements

• Launched TSC Thesis Award, investing NT$6.32 million in industry-academia collaboration
• Donated reading resources for remote townships
• Provided reading resources to support the “Future Kids Charity Program”
• Promoted sports to communities
• Customer satisfaction: 9.14 points
• Personnel service satisfaction: 9.34 points
• Supplier evaluation Joint CSR Declaration 97.6% response rate
• Audit rate of suppliers with transaction amounts over NT$10 million: 91%

Governance Achievements

• Board approva Include ESG assessment and analysis of investment targets in sustainable investment decision-making
• ISO 45001/ISO 14001 implementation
• Published the first Climate-related Financial Report based on the TCFD framework and core and pass third-party assurance
• Passed ISO 45001 certification

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Increased cost of raw materials
• Decreased production capacity
• ESG investment transition risk
• Reputation impact
• Uncertainties in tax systems and regulations
• Changes in tax laws or incentives
• Increased tax compliance costs

Mitigation Strategies

• Close capture of carbon reduction performance of suppliers and the relevant laws, regulations, and policies
• Active review of up/downstream order demands and supply capacity to facilitate early communication and planning (including costs) of supply chain
• Regular contacts with customers to understand production line condition and materials demand and prompt and reliable responses to customer demands and reflection of material costs
• Increased sources for low-emission goods
• Enhanced supplier communication for low-emission transition
• Strengthened education and training on low emissions for purchasers to facilitate sourcing and screening low-emission goods
• Enhanced customer communication for early capture of the exact demand (item, quantity, and budget) for low-emission goods
• Continuous GHG reduction actions
• Allocation of low-emission risk assets
• Planning for long-term deployment of carbon credit
• Green power investments and green power platform development
• Assessment of technology innovation teams in greater detail
• Increased investments in and guidance for innovation teams with integrated group resources
• Increased proportion of low-emission goods
• Continuous green economy development
• Enhanced capture of the climate adaptation measures and response capacity of suppliers
• Appropriate stock increase
• Appropriate fund allocation to relieve cashflow pressure

Supply Chain Management

Supplier Audits: 91% of suppliers with transaction amounts over NT$10 million audited (2022)

Responsible Procurement

• Joint CSR Declaration
• Human Rights Assessment
• Supplier Self-Assessment Questionnaire
• RBA Code of Conduct
• ISO 14001 certification for major suppliers
• Compliance with RoHS directive for major chemical suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Typhoons
• Increased insurance premiums for disasters
• Temperature rise

Transition Risks

• GHG total volume control and carbon tax, carbon fee
• Net-zero emission trend
• Substitution of existing products and services with lower emissions options
• Uncertainty in the development of new energy conservation and carbon reduction technology
• Increased cost of raw materials
• Decreased production capacity
• ESG investment transition risk
• Reputation impact

Opportunities

• Promote green, low-emission production
• Build green buildings
• Participation in renewable energy programs
• Carbon emission offset to obtain public-sector incentives
• Participation in carbon market
• Development of low emission goods and services/Increased efficiency of customer products
• Access to new markets
• Increased diversification of financial assets (e.g., green bonds and infrastructure)
• Enhancement of resilience against disasters
• Improvement of business reputation

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB Standards, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949

Third-party Assurance: AFNOR Group

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 4 (Quality education)
• Goal 3 (Good health and well-being)

Not disclosed

Sustainable Products & Innovation

• Anyo Santé Premium Silver Perch Essence
• Green chemical substitutes from Merck

Awards & Recognition

• APSAA Bronze (2022)
• TCSA Top 100 Sustainability Model Awards (2022)
• TCSA Corporate Sustainability Report Awards - Silver (2022)
• Medium-Size Enterprises M&A Deal Award at the MAPECT Taiwan M&A Awards (2022)
• Excellent Supplier Award of Nanya Technology Corporation (2022)
• Outstanding Supplier Award of Huahong Grace Semiconductor (2022)
• Gold Award and Long-Term Sponsorship Award of the Sports Activist Awards of the Sports Administration, Ministry of Education (2022)
• Special Award, Best Design Category, FIABCI-Taiwan Real Estate Excellence Awards (2020)