Climate Change Data

Environmental Metrics

ESG Focus Areas

• corporate governance
• supply chain sustainability
• environmental sustainability
• employee-friendly workplace
• social feedback

Environmental Achievements

• Established a Corporate Sustainability Commission in 2019 to develop sustainable corporate strategies and initiatives.
• Developed green environmental protection policies and procedures to reduce waste and damage to the environment.
• Implemented energy-saving and carbon-reduction strategies, including energy-saving lighting, digitization of documents, carton reduction, and fixed air-conditioning temperature.

Social Achievements

• Maintained harmonious labor-management relations.
• Provided a variety of internal communication mechanisms, such as quarterly labor-management meetings and company-wide colleague meetings.
• Offered a diversified welfare system, complete leisure facilities, and health promotion activities.
• Established a charity fundraising mechanism and conducted regular fundraising activities and donations to charity.

Governance Achievements

• Established a Corporate Sustainability Commission in 2019.
• Appointed the CFO as the head of Corporate Governance.
• Laid down the Company’s policy of Corporate Governance and Board Performance Evaluation Measures for annual evaluation.
• Formulated the company's Risk Management Policy.
• Formulated the company's Insider Trading Prevention Measures.
• Implemented the “Code of Conduct for Responsible Business Alliances”.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic instability caused by the pandemic and currency fluctuations, leading to uncertain consumer demand.
• Rise of professional labor costs due to the booming development of the IC industry.
• Increased competition in the ASIC design services market.

Mitigation Strategies

• Developed strategies early to protect existing long-term clients.
• Improved proportion of high value-added products and enhanced core technology competitiveness.
• Developed higher-level design techniques and strengthened system-level services.
• Strove to develop niche applications, adjust product/customer composition, increase added value, and develop international markets.

Supply Chain Management

Responsible Procurement

• supplier investigation, assessment standards, and outsourcing factory management based on ISO standards

Climate-Related Risks & Opportunities

Physical Risks

• disasters or shocks

Transition Risks

• raw-material supply

Opportunities

• development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO9001, ISO 26262

Third-party Assurance: SGS

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Risk management
• Integrity & legal compliance
• CompeƟtiveness in R&D, innovaƟon & quality
• Customer confidenƟality & informaƟon security
• Talent aƩracƟon and retenƟon
• Employee safety and health
• Sustainable supply chain management
• Customer service management
• Environment protect policy

Environmental Achievements

• Reduced carbon emissions by 35.43 metric tons/year through energy-saving initiatives.
• Installed 89.70 KWp solar photovoltaic power generation system, producing 20,122 KWh electricity in 2022 and reducing carbon emissions by 10.24 tons of CO2e.
• Achieved 33% waste resource recycling rate.
• 100% of suppliers signed the “Commitment Not to Use Environmental Substances”.

Social Achievements

• Launched Employee Stock Ownership Trust plan with over 75% employee participation.
• Increased employee health check expenses by 88%.
• Obtained certification of premium breastfeeding room.
• Donated NTD$508,688 to Huaguang intelligence development center.
• Donated NTD$95,300 to Hsinchu Family Support Center.
• Sponsored Tung-Shih junior high school baseball team with NTD$4.7 million over 10 years.
• Sponsored Hsinchu MacKay Children’s Hospital with NT$2 million over 4 years.

Governance Achievements

• Ranked in the top 6th~20th percentile of listed companies in corporate governance evaluation.
• Achieved 100% director attendance rate at board meetings.
• Implemented information security training for 2976 employees.
• Received the highest level of “Excellence in Quality Practice Award (3 stars)” from the Chinese Society for Quality.
• Received the “2022 National Talent Development Award” for large companies.

Climate Goals & Targets

Environmental Challenges

• Geopolitical uncertainties and global inflation impacting the global economy.
• Supply and demand changes in the semiconductor industry.
• Climate change risks (extreme weather, water restrictions, power outages).
• Supply chain disruptions due to geopolitical factors and climate events.

Mitigation Strategies

• Close collaboration with supply chain and customers to manage supply and demand.
• Strengthening technological development and digitization to improve operating efficiency.
• Implementing Business Continuity Plan (BCP) and emergency response mechanisms.
• Developing alternative sourcing strategies.
• Investing in energy-saving equipment and renewable energy.
• Implementing robust risk management mechanisms.

Supply Chain Management

Supplier Audits: 100% in 2022

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Conflict mineral management
• RoHS and REACH compliance

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons/hurricanes
• Severe storms
• Water restrictions
• Power outages

Transition Risks

• Government energy reduction policies
• Carbon tax/carbon trading systems
• Shifting customer preferences

Opportunities

• Development of energy-efficient products
• New business opportunities from green energy policies
• Reduced operating expenses through energy efficiency

Reporting Standards

Frameworks Used: GRI Standards_2021, SASB

Certifications: ISO 9001, ISO 14001, ISO 26262 ASIL-D Ready

Third-party Assurance: SGS Taiwan Ltd.

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 10: Reduced inequalities
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Faraday's initiatives contribute to these goals through energy efficiency, responsible supply chain management, community investment, talent development, and environmental protection.

Sustainable Products & Innovation

• Low-power consumption IP and ASIC solutions
• Energy-efficient products for customers

Awards & Recognition

• Top 100 Excellence in Corporate Sustainable Citizenship Award
• Top 100 Best-Performing CEOs in Taiwan 2022
• Excellence in Quality Practice Award (3 stars)
• 2022 National Talent Development Award

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Completed 3 energy-saving equipment updates, resulting in an annual energy saving of 192,752 kilowatt-hours and a reduction in greenhouse gas emissions by 95.413 metric tons of CO2e
• Total generated renewable energy electricity is 108,000 kilowatt-hours
• Suppliers do not use any environmentally harmful substances, achieving a 100% clean track record

Social Achievements

• Received the 2023 “Promotion of Workplace Gender Equality Special Excellence Award”,
• Received the 2023 “iSports Enterprise Certificate”,
• Received the 2023 “Accredited Healthy Workplace Badge”,
• Officially implemented an employee stock trust system in 2022 with a participation rate exceeding 75%
• Contributed and donated to support 4 local welfare organizations, totaling NT$1.15 million

Governance Achievements

• Implemented an Information Security Management System (ISMS) in 2023 and obtained ISO/IEC 27001:2022 international standard certification
• Successfully passed the Taiwan Intellectual Property Management Specification (TIPS) Grade A verification in 2023
• Formally established a nomination committee on October 24th, 2023 to strengthen the board of director selection process, fostering a diverse and professional board of directors
• In response to green finance initiatives, Faraday, through its subsidiary Sinble Technology Pte. Ltd. (Singapore), has invested in green deposits issued by United Overseas Bank (UOB) Singapore Branch, totaling SG$4 million

Climate Goals & Targets

Environmental Challenges

• declining customer demand and inventory adjustments
• weakened demand in end markets and inventory adjustments

Mitigation Strategies

• actively managed inventory
• closely collaborated with customers and partners across the supply chain to navigate market challenges together

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Supplier Code of Conduct
• ISO 9001 and ISO 14001 certifications
• ISO 45001 certifications

Climate-Related Risks & Opportunities

Physical Risks

• hurricanes
• precipitation patterns
• temperature rise
• water rationing
• electricity rationing

Transition Risks

• regulatory compliance
• market transformation
• carbon tax
• carbon trading system

Opportunities

• resource recycling
• policy incentives
• energy-saving measures
• development of new products and business opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, TNFD

Certifications: ISO 9001, ISO/IEC 27001:2022, TIPS Grade A

Third-party Assurance: SGS

Sustainable Products & Innovation

• low-power design and low-power platforms
• ASIC products for energy-saving purposes

Awards & Recognition

• No. 1 in the Top 50 Best Companies in Operational Performance by the Common Wealth Magazine
• Green Leadership and Corporate Sustainability Reporting by The Asia Responsible Enterprise Awards
• The Excellence in Quality Practice in 2023 by ANQ Recognition
• Excellence Case Award from the Association of Quality Manager (AQM)
• Promotion of Workplace Gender Equality Special Excellence Award
• Accredited Healthy Workplace Badge
• iSports Enterprise Certificate