Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employees & Workplace Quality
• Sustainable Operating Practices
• Community Investment

Environmental Achievements

• Reduced electricity consumption by 4.68% year on year
• Conducted two recycling programs (centralized paper recycling and gold recycling)
• Organized three environmental protection related activities for staff (red packets recycling, rechargeable batteries recycling, weekly green tips)
• Complied with environmental legal and customer requirements with zero complaints

Social Achievements

• No work-related fatalities recorded
• 2,180 man-hours dedicated to training and development (average 5 hours per employee)
• Adopted flexible work hours policy
• Organized various employee relations activities (anniversary dinner, annual lunch, yoga class, etc.)
• Awarded the “Happy Company” label

Governance Achievements

• Implemented a Code of Conduct and an Anti-Fraud Policy
• Established risk management and internal control systems based on COSCO’s framework
• Conducted “Internal Control & Information Protection Training” twice in Shenzhen office and integrity and compliance training for new employees by ICAC
• Granted 16 patents and filed 29 patent applications
• Achieved 75.2% achievement rate for first-level customer incident handling

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Annual quality reviews with suppliers supplying over 30% of specific materials or services; Site audits conducted based on sustainability performance rating and in case of issues or serious product quality problems

Responsible Procurement

• Supplier Quality Management System; Requirement for ISO9001 and ISO14001 certifications; Green Warranty letter from suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong Limited’s ESG Reporting Guide

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low power consumption IC products and system solutions

Awards & Recognition

• “Happy Company” label
• “Corporate Citizenship Logo” (Enterprise Category)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainable Operating Practices
• Employees and Workplace Quality
• Community Investment

Environmental Achievements

• Reduced electricity consumption by 10.91% year-on-year
• Conducted recycling programs for red packets and rechargeable batteries
• Achieved zero complaints on environmental legal and customer requirements
• All products are Restriction of Hazardous Substances (RoHS) compliant and halide-free
• ISO14001 certification for environmental management systems

Social Achievements

• No cases of non-compliance with labor and equal opportunities regulations
• Provided 3,713 man-hours of training and development (average 13 hours per employee)
• No work-related fatalities recorded
• Organized various employee relations activities
• Offered performance-based cash reward schemes and awards for innovation and long service

Governance Achievements

• Implemented the “Three Lines of Defense” model for risk management
• Reviewed and assessed the effectiveness of risk management and internal control systems
• Implemented a Protection and Proprietary Information Policy
• Conducted Internal Control and Information Protection Training sessions
• Granted 17 patents and filed 8 patent applications
• No incident of fraud or misconduct reported

Climate Goals & Targets

Environmental Challenges

• Increased packaging materials and non-hazardous waste due to increased product shipment
• Water consumption data not reported due to leased office premises

Mitigation Strategies

• Installed office automation systems to create a paperless office
• Supported Earth Hour 2019
• Shared weekly “Green Tips” with employees

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Quality Management System
• ISO9001 and ISO14001 certifications for major suppliers
• Green Warranty letters from suppliers
• Annual quality reviews with major suppliers
• Sustainability performance assessment through business scoreboard

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HK Stock Exchange ESG Reporting Guide

Certifications: ISO14001

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Low power consumption IC products

Awards & Recognition

• Corporate Citizenship Logo
• Happy Company

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainable Operating Practices
• Employees and Workplace Quality
• Community Investment

Environmental Achievements

• Reduced electricity consumption by 6.98% compared to 2019 (494,279 kWh in 2020)
• Reduced paper consumption to 1,040 kg in 2020
• Zero complaints received regarding environmental legal and customer requirements
• All products are Restriction of Hazardous Substances (RoHS) compliant and halide-free
• ISO14001 certification for environmental management systems

Social Achievements

• 3,690 man-hours dedicated to training and development (average 11 hours per employee)
• No work-related fatalities recorded
• No cases of non-compliance with labor and equal opportunities regulations
• Adoption of Flexible Work Hours policy
• Implementation of performance-based cash reward schemes

Governance Achievements

• Implementation of the “Three Lines of Defense” model for risk management
• Adoption of COSO’s Internal Control-Integrated Framework
• Protection and Proprietary Information Policy in place
• Code of Conduct and Anti-Fraud Policy in place
• No incident of fraud or misconduct reported

Climate Goals & Targets

Environmental Challenges

• Increased packaging materials due to increased product shipment and smaller quantity shipments
• Increased non-hazardous waste due to office relocation

Mitigation Strategies

• Introduced a HR Self-Service System to create a paperless office
• Supported “Earth Hour 2020”
• Shared weekly “Green Tips” with employees
• Supplier Quality Management System to ensure quality and environmental protection
• Annual quality reviews with major suppliers

Supply Chain Management

Supplier Audits: Site audits conducted based on business scoreboard and when issues arise

Responsible Procurement

• ISO9001 and ISO14001 certifications required from major suppliers
• Green Warranty letter required from suppliers
• Code of Conduct integrated into supplier contracts

Climate-Related Risks & Opportunities

Opportunities

• Low power consumption design of IC products

Reporting Standards

Frameworks Used: HK Stock Exchange ESG Reporting Guide

Certifications: ISO14001, ISO9001 (suppliers)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Low power consumption IC products

Awards & Recognition

• Corporate Citizenship Logo
• Happy Company
• Caring Company

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Sustainable Operating Practices
• Community Investment

Environmental Achievements

• Received the “2021 Star of Partners in Promoting Sustainable Co-Prosperity” award from E Ink Holdings Inc. for jointly creating sustainable low-carbon e-paper.

Social Achievements

• Zero work-related fatalities and injuries in 2021.
• Achieved an 86% customer satisfaction rate in 2021.

Governance Achievements

• Established an ESG Task Force Committee to manage ESG issues.
• Implemented a whistle-blowing mechanism.

Climate Goals & Targets

Environmental Challenges

• Potential supply chain disruptions due to extreme weather events.
• Shift in market preference towards environmentally friendly products.

Mitigation Strategies

• Developed strategies for mitigating and responding to extreme weather events, including maintaining diverse supplier sources and a supply chain contingency plan.
• Implemented an EMS according to ISO14001 standard and committed to achieving a sustainable value chain with continual improvement.
• Developing technologies that improve energy efficiency in devices.

Supply Chain Management

Supplier Audits: Annual quality reviews with suppliers supplying over 30% of specific materials or services; regular manufacturing supplier audits.

Responsible Procurement

• Stringent procurement system; standardized procurement process; supplier evaluation; Code of Conduct adherence; prevention of business bribery.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting product flow and shipping; reduced capacity and productivity; damage to power grids and communications infrastructure; employee injuries.

Transition Risks

• Stringent climate legislation and regulations; shift in market preference towards environmentally friendly products.

Opportunities

• Developing technologies that improve energy efficiency in devices; developing green products that minimize environmental impacts; collaborating with E Ink to create low-carbon electronic paper display panels.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 9001

Sustainable Products & Innovation

• Low-power consumption and low-carbon content products; electronic shelf labels; 7-colors e-paper display panels; Advanced Colour e-Paper (ACeP) products; full-colour Touch Display Driver IC (TDDI) for wearables and IoT devices; Mobile Industry Processor Interface (MIPI) solutions for display.

Awards & Recognition

• 2021 Star of Partners in Promoting Sustainable Co-Prosperity (E Ink Holdings Inc.)
• Hong Kong’s Most Outstanding Business Awards 2021
• The Listed Enterprise Excellence Awards 2021

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practice
• Sustainable Operating Practices
• Community Investment

Environmental Achievements

• Reduced electricity consumption by 2.07% compared to 2021.
• Reduced GHG emissions by 0.44% compared to 2021.
• Reduced non-hazardous waste by 35.22% in Hong Kong headquarters compared to 2021.
• Improved energy efficiency by replacing high voltage mercury lamp UV machines with UV exposure machines with approximately 81% less electricity consumption.

Social Achievements

• Zero work-related fatalities and injuries in 2022.
• Approximately 8,795.35 man-hours dedicated to training and development in 2022.
• Overall training percentage of approximately 69.89%.

Governance Achievements

• Established an ESG Task Force Committee to manage ESG issues.
• Conducted materiality assessment surveys through stakeholder engagement.
• Provided anti-corruption training to 7 Directors and 11 employees.

Climate Goals & Targets

Environmental Challenges

• Potential supply chain disruptions due to extreme weather events.
• Shift in market preference towards environmentally friendly products.

Mitigation Strategies

• Developed strategies for mitigating and responding to extreme weather events, including maintaining diverse supplier sources and a supply chain contingency plan.
• Implemented an EMS according to ISO14001 standard and committed to achieving a sustainable value chain with continual improvement.
• Developing technologies that improve energy efficiency in devices.

Supply Chain Management

Supplier Audits: Regular audits conducted; 100% of major suppliers have ISO9001 and ISO14001 certifications.

Responsible Procurement

• Supplier Quality Management System; stringent procurement system documented in Procurement Policy; prioritizes procurement of environmentally friendly products; adherence to Code of Conduct; prevents business bribery.

Climate-Related Risks & Opportunities

Physical Risks

• Supply chain disruptions due to extreme weather events; reduced capacity and productivity; damage to power grids and communications infrastructure; employee injuries.

Transition Risks

• Stringent climate legislation and regulations; shift in market preference towards environmentally friendly products.

Opportunities

• Development of energy-efficient products; development of green products that help reduce GHG emissions and power consumption.

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 17

“eRead for the Future” project contributes to SDG 3 (Good Health and Wellbeing), SDG 4 (Quality Education), and SDG 17 (Global Partnership).

Sustainable Products & Innovation

• Low-power consumption and low-carbon content products such as ESL and e-readers; Advanced Colour e-Paper (ACeP) products; full-colour Touch Display Driver IC (TDDI) for wearables and IoT devices; Mobile Industry Processor Interface (MIPI) solutions for display.

Environmental Metrics

ESG Focus Areas

• Quality products and customer services
• Business ethics
• Customer data protection and privacy
• IP rights
• Supply chain management

Environmental Achievements

• Reduced total electricity consumption by approximately 4.90% in 2023 compared to 2021 (excluding Dongguan Testing and Packing Center)
• Reduced GHG emissions by approximately 17.35% in 2023 compared to 2021 (excluding Dongguan Testing and Packing Center)
• Reduced total non-hazardous waste in Hong Kong headquarters significantly from approximately 3,100.44 kg to approximately 2,237.53 kg in 2023 compared to 2021

Social Achievements

• Overall employee turnover rate decreased to approximately 13.28% in 2023 from approximately 21.51% in 2022
• No work-related fatalities occurred between 1 January 2021 and 31 December 2023
• Total training hours increased to approximately 10,354.05 hours in 2023 from approximately 8,795.35 hours in 2022

Governance Achievements

• Established an ESG Task Force Committee to oversee ESG matters
• Conducted materiality assessment surveys through stakeholder engagement
• Implemented a whistle-blowing mechanism and Anti-Fraud Policy

Climate Goals & Targets

Environmental Challenges

• Increase in Dongguan Testing and Packing Center's electricity and water consumption due to increased production volume
• Relocation of a Mainland China office in 2023, contributing to a rise in general waste
• Potential supply chain disruptions due to extreme weather events

Mitigation Strategies

• Continued monitoring of performance and striving for improvement in energy and water efficiency
• Developed strategies for mitigating and responding to extreme weather events across its value chain, including maintaining diverse supplier sources and a supply chain contingency plan
• Implemented business contingency plans and provided alternate solutions for remote work during bad weather conditions

Supply Chain Management

Responsible Procurement

• Supplier Quality Management System
• Procurement Policy
• Prioritization of environmentally friendly products
• Code of Conduct
• Control of Subcontracted Manufacturing

Climate-Related Risks & Opportunities

Physical Risks

• Supply chain disruptions due to extreme weather events
• Reduced capacity and productivity due to extreme weather events

Transition Risks

• Shift in market preference towards environmental-friendly products

Opportunities

• Development of energy-efficient products (e.g., low-carbon electronic paper display panels)

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 of The Rules Governing the Listing of Securities by the Stock Exchange)

Certifications: ISO 14001

Sustainable Products & Innovation

• Low-carbon electronic paper display panels
• 7-colours display panels for ESL and retail signage

Awards & Recognition

• Caring Company 2022/2023
• EcoPartner at the BOCHK Corporate Low-Carbon Environmental Leadership Awards 2022