Climate Change Data

NETRONIX, INC.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:2,136.532 tCO2e/year (Scope 1-3)
Scope 1 Emissions:0.003 tCO2e/year
Scope 2 Emissions:1,687.763 tCO2e/year
Scope 3 Emissions:2,136.532 tCO2e/year
Water Consumption:111.164 tons/year
Waste Generated:65,850 Kg/year

ESG Focus Areas

  • Environmental Protection
  • Social Responsibility
  • Corporate Governance

Environmental Achievements

  • Completed GHG emission quantification and reporting in adherence to IOS14064-1:2018 and carbon footprint inspection for E-Reader.
  • Total GHG emissions were reduced in 2022 by 94.995 tons of CO2e from 2021. Scope 1 emissions were down by 5.561 tons of CO2e, Scope 2 down by 177.235 tons of CO2e in 2022 from 2021, respectively.
  • Water consumption in 2022 were reduced by approximately 1,090 tons from 2021.

Social Achievements

  • Donated 1,000 E-Readers in color to all the 37 elementary schools in Penghu County in 2022.
  • Supports social welfare activities and continues to sponsor after-class care of students in Shakeng Elementary School.
  • Female employees constitute 65.8% of the workforce. Female managers account for 27.5% of the management.

Governance Achievements

  • Established an Audit Committee to replace supervisors.
  • Appointed a chief corporate governance officer.
  • Adopted the “Regulations Governing Procedure for Board of Directors Meetings” to establish the Board of Directors’ governance system and robust supervision functions.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by the end of 2050
Medium-term Goals:
  • Achieve 100% renewables for all electricity consumption by the end of 2030

Environmental Challenges

  • The Russia-Ukraine war and inflation pose uncertainties.
  • The Russia-Ukraine war has caused soaring energy costs for some countries in the European Union, affecting public spending power and demand for consumer electronics.
  • Price competition from Chinese manufacturers in networking products has depressed sales.
Mitigation Strategies
  • Keep a close eye on the war and make timely adjustments of products and markets to minimize uncertainties.
  • Continue to develop mid/high-end products with value-added in software and technology-oriented products with competitive advantage.
  • Seek differentiation with better customer services to enhance competitiveness and boost gross margin and market shares.

Supply Chain Management

Responsible Procurement
  • Suppliers shall adhere to the Electronic Industry Citizenship Coalition (EICC) code of conduct

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • E-Paper application products

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2,175.118 tCO2e/year (2022); 2,106.153 tCO2e/year (2023)
Scope 1 Emissions:149.595 tCO2e/year (2022); 140.300 tCO2e/year (2023)
Scope 2 Emissions:1,687.763 tCO2e/year (2022); 1,611.760 tCO2e/year (2023)
Scope 3 Emissions:337.760 tCO2e/year (2022); 354.093 tCO2e/year (2023)
Water Consumption:14.44 million liters (2022); 15.46 million liters (2023)
Waste Generated:221.97 tons (2022); 190.74 tons (2023)
Carbon Intensity:0.519 tons CO2e/million NTD (2022); 0.6092 tons CO2e/million NTD (2023)

ESG Focus Areas

  • Environmental Protection
  • Social Responsibility
  • Corporate Governance

Environmental Achievements

  • Completed the first phase of greenhouse gas inventory in 2022.
  • Completed the survey and assurance report of product carbon footprint in 2023.
  • Completed the 2022 sustainability report.
  • Created a vegetable garden to green its offices in 2023.
  • Implemented energy efficiency and carbon reduction policies.

Social Achievements

  • Maintains harmonious labor-management relationships.
  • Provides various employee benefits (compensation, bonuses, insurance, leisure activities, subsidies, etc.).
  • Organizes regular internal and external training for employees.
  • Supports social welfare activities (donated E-Readers to schools and libraries).

Governance Achievements

  • Established an Audit Committee.
  • Appointed a chief corporate governance officer.
  • Improved information transparency.
  • Adopted the “Regulations Governing Procedure for Board of Directors Meetings”, “Regulations Governing Payment of Remuneration to Directors and Functional Committee Members”, and “Regulations Governing Handling of Whistle-Blowing Against Misconduct and Immoral or Unethical Conduct”.

Climate Goals & Targets

Long-term Goals:
  • Achieve 100% renewables for all electricity consumption by the end of 2030.
  • Achieve net zero emissions by the end of 2050.
Medium-term Goals:
  • Increase partners at home and abroad in the form of strategic alliance.
  • Improve the relationship with marketing partners all over the world.
Short-term Goals:
  • Expand marketing channels via investment in domestic and foreign companies.
  • Continue to solicit new orders in the form of OEM/ODM.
  • Develop new customers with new product lines and niche products.

Environmental Challenges

  • Unfavorable economic conditions (Fed's interest rate hike, destocking by electronics manufacturers, US-China trade war, Russo-Ukrainian war, Israel-Palestine war).
  • Changes in consumption patterns due to the COVID-19 pandemic.
  • Global war causing sharp rise in German energy costs, affecting consumer spending.
  • Fierce price competition in the electronics industry.
  • Year-on-year rise in labor costs.
  • Rapid technological changes.
  • Cybersecurity risks.
Mitigation Strategies
  • Prudent operations and volatility adjustments.
  • Development of new products based on existing resources.
  • Production management and improvement of process yield rate.
  • Launching innovative and creative niche products.
  • Adoption of automated production equipment.
  • Product portfolio adjustment, eliminating outdated products.
  • Relocation to low-cost territories for production.
  • Accepting commissioned processing orders.
  • Implementing energy efficiency and carbon reduction policies.
  • Strengthening information security protection measures.
  • Obtaining ISO/IEC 27001 information security certification.

Supply Chain Management

Responsible Procurement
  • Maintains fair partnerships with raw materials suppliers.
  • Develops second suppliers of critical materials and components.
  • Requires suppliers to adhere to the Electronic Industry Citizenship Coalition (EICC) code of conduct.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (typhoons, heavy rains, floods)
Transition Risks
  • Imposition of carbon fees (taxes)
Opportunities
  • Development of energy-efficient products
  • Expanding the application scenarios and demand for e-paper

Reporting Standards

Frameworks Used: GRI Standards, SASB

Certifications: ISO 9001, ISO 14001, OHSAS, ISO 45001, ISO 13485, ISO/IEC 27001, ISO 14064, ISO 14067, ISO 50001 (introduced in April 2024)

Third-party Assurance: British Standards Institution Taiwan Branch (BSI Taiwan)

Sustainable Products & Innovation

  • Electronic shelf labels
  • Grip signages
  • Color E-Readers