Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Social Inclusion
• Sustainable Innovation

Environmental Achievements

• Fostering environmental awareness among employees and implementing energy conservation and carbon reduction measures
• Promoting energy conservation and carbon reduction in the supply chain
• Implementing green design concepts
• Developing net-zero emission technology services

Social Achievements

• Creating a harmonious and stable workplace environment through training and employee healthcare initiatives
• Setting up additional communication channels to understand employee needs
• Prioritizing assistance for underprivileged groups
• Organizing social welfare activities

Governance Achievements

• Achieved a ranking in the 21-35% bracket of the 8th Corporate Governance Evaluation
• Appointed a Chief Governance Officer (CGO) to strengthen board operations and enhance information transparency
• Ratified Corporate Governance Best Practice Principles
• Established Audit and Remuneration committees

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic, geopolitical risks, and global trends of supply chain relocation
• Occupational accident risks
• Labor shortage risks
• Interest rate fluctuations
• Exchange rate fluctuations
• Credit risks
• Information security risks
• Market competition
• Raw material supply & demand risks
• Emerging infectious diseases
• Climate change risks (water shortages, typhoons)

Mitigation Strategies

• Prioritizing resource integration and expansion of local manufacturing services
• Developing high-value products and solutions
• Implementing an ISO 45001 management system and regular occupational health and safety committee meetings
• Developing sound training plans to cultivate long-serving technical personnel
• Establishing a working hour management system and strengthening the mentorship system
• Executing manpower replenishment plans
• Relying on a healthy financial structure and prudent use of capital
• Implementing measures for the collection of overdue receivables and review of recoverable amounts
• Reducing USD and RMB net positions to reduce currency risks
• Opening foreign currency deposit accounts and adjusting held foreign currency positions
• Implementing file and equipment security measures, regular system backups, and access controls
• Maintaining close contact with customers and innovating R&D technologies
• Developing alternative sourcing strategies and utilizing a logistics consolidation mechanism
• Forming task forces and implementing a response measure for emerging infectious diseases
• Implementing a green product management system and GHG inventory and reduction measures
• Implementing water conservation measures and forming a Typhoon Disaster Prevention Command Center

Supply Chain Management

Supplier Audits: 258 suppliers assessed in 2021

Responsible Procurement

• Ennoconn Corporation Supplier Code of Conduct
• Responsible Minerals Initiative’s “Responsible Minerals Assurance Progress” due diligence
• Requesting suppliers to purchase non-conflict raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Water shortages
• Typhoons

Reporting Standards

Frameworks Used: GRI Standards 2016, AA1000 v3 Type I (Moderate) Assurance Standards

Certifications: ISO 9001, ISO 14001, ISO 13485

Third-party Assurance: SGS Taiwan Ltd.

Sustainable Products & Innovation

• KSwitch series (96.6% recycle rate)

Environmental Metrics

ESG Focus Areas

• Accountable Governance
• ESG Sustainable Development Strategy
• Sustainable risk management
• Governance of climate change
• Sustainable Innovation Responsibility
• Friendly Workplace
• Sustainable Environment
• Society Co-Prosperity

Environmental Achievements

• Assisted New North Municipal Government and Taichung Municipal Government to complete integration of smart buildings and construction of energy management systems
• Integrated central control and protection system of Taipei Municipal Building
• Introduced intelligent building system of Yunlin No.2 Prison
• Annual electricity savings of 1%
• Reduced carbon emissions by achieving 50% reduction by 2030 (target)

Social Achievements

• Created a harmonious and stable workplace environment
• Offered regular health checks and organized health and safety-related lectures and workshops
• Set up additional communication channels
• Organized regular labor-management meetings
• Prioritized assistance for underprivileged groups
• Organized a series of social welfare activities

Governance Achievements

• Established a solid corporate governance system
• Ratified Corporate Governance Code of Practices
• Ratified Operating Procedures Governing Handling of Internal Material Information and Management Procedures Regarding Prevention of Insider Trading
• Established a complete and reliable information disclosure system
• Achieved a ranking in the 21-35% bracket of the 8th Corporate Governance Evaluation

Climate Goals & Targets

Environmental Challenges

• Economic uncertainty due to US-China trade war and Russia-Ukraine war
• Worsening impact of climate change
• Information security incidents
• Supply chain disruptions due to the pandemic
• Increase in raw material cost due to increase in transportation fees and short-supply of cross-border transportation
• Increase in costs of order fulfillment
• Frequent changes in consumer needs
• Increase of returned goods and scraped items
• Higher clients’ demands on quality
• Stringent regulations

Mitigation Strategies

• Implementing the important strategy of integrating products, markets, and service operations, and dispersing the global layout of sales, supply chain, production base, etc.
• Deepening key technology development, niche product integration and value-added, and full-channel integration and series
• Using many years of accumulated design and manufacturing services (DMS), information technology (IT), system integration (SI) and cloud (Cloud) services
• Constructing a complete "AIoT hard and soft cloud platform" solution
• Integrating upstream and downstream carbon footprint emissions, the implementation of ESG
• Actively expanding ESaaS (Ennoconn Solution as a Service) openness Cloud platform solutions and subscription-based services business
• Developing alternative sourcing strategies
• Implementing an environmental management system
• Adopting GHG inventory and reduction measures in coordination with energy conservation policies of the government
• Compliance with applicable laws and regulations and customer requirements
• Implementing supplier audits
• Targeting companies in various industries around the world for vertical integration
• Checking whether the ceiling sling is firm every year
• Annual Educational Exercise
• Developing and/or increasing low-carbon goods and services
• Implementing supplier audits
• Strengthening information security management
• Forming an information security task force
• Developing security policies and enforcement procedures
• Setting up internal organization for information security
• Strengthening software and hardware architectures and ensuring the security of network use
• Regular asset risk inventory, vulnerability scanning, and recovery plan exercises
• Continuous implementation of mechanism for systems backup
• Conducting employee education and training to raise awareness of security risks
• Early preparation on purchase
• Looking for alternative source
• Multiple solutions
• Coordination and cooperation
• Developing locally for customized manufacturing if original manufacturer’s factory is shutdown

Supply Chain Management

Supplier Audits: 214 suppliers responded to ESG questionnaire survey

Responsible Procurement

• Ennoconn Corporation Supplier Code of Conduct
• Requesting suppliers to purchase non-conflict raw materials and avoid using conflict minerals
• Implementing inspections on supplier social responsibility and environment health and safety
• Adding questionnaire items for supplier’s greenhouse gas inventories

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of events of extreme weather such as typhoons and floods
• Changes in rainfall (water) patterns and extreme changes in climate patterns
• Average Temperature Increases
• Sea level rise

Transition Risks

• Increasing the price of greenhouse gas emissions
• Enhanced reporting obligations on emissions
• Requirements and Regulations for Existing Products and Services
• Replacing existing products and services with low-carbon goods
• Costs of Transformation with Low-Carbon Technology
• Changes in customer behavior
• Increased cost of raw materials

Opportunities

• Reduce water use and consumption
• Use more efficient production and distribution processes
• Recycling
• Converting to more efficient buildings
• Adopt more efficient modes of transport
• Use of low-carbon energy
• Adopt incentive policies
• Use of new technology
• Participation in the carbon trading market
• Transition to decentralized energy

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Certifications: ISO 9001, ISO 14001, ISO 14064, ISO 50001 (expected by end of 2023), ISO 45001 (expected by end of 2023), ISO 27001 (expected by end of 2023), ISO 13485

Third-party Assurance: SGS Taiwan Ltd.

Sustainable Products & Innovation

• Green products with easy-disassembly or modularity in design
• KSwitch series of industrial control products (96.6% recycle rate)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance
• Green Business

Environmental Achievements

• Set a target to reduce carbon emissions by 30% by 2025 and 50% by 2030. Long-term strategy is to achieve net-zero emissions by 2050.
• Implemented an electricity saving program focusing on air-conditioning systems, power and lighting, and other electricity consumption.
• Regularly inspected and replaced equipment to avoid excessive energy consumption.

Social Achievements

• Follows GRI and RBA guidelines in practicing sustainable and compliant human rights issues.
• Prioritizes procurement of products considering environmental and social issues in manufacturing.
• Zero tolerance policy for child labor, harassment/discrimination, disrespect of freedom of association, and workplace injuries/occupational diseases.

Governance Achievements

• Established a sustainability committee planning for a sustainable vision for 2030.
• Includes RBA requirements into zero tolerance policy; non-compliance leads to order reduction, transaction freezes, or disqualification as a qualified supplier.

Climate Goals & Targets

Environmental Challenges

• Minimizing the impact of all purchases on communities, the environment and natural resources.
• Ensuring supplier compliance with environmental and social standards.
• Managing risks associated with conflict minerals.

Mitigation Strategies

• Prioritizes suppliers that actively implement measures to reduce environmental burden and implement sustainability policies.
• Evaluates and accredits suppliers according to sustainable purchasing guidelines.
• Communicates to suppliers the company's stance against conflict minerals and urges compliance.

Supply Chain Management

Responsible Procurement

• Compliance with RBA Code of Conduct
• Prohibition of conflict minerals
• Prioritization of suppliers with environmental management systems (e.g., ISO 14001)
• Use of recycled materials
• Compliance with RoHS, WEEE, and other environmental regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, RBA

Certifications: ISO14001, ISO50001, ISO14064-1

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Ennoconn's commitment to biodiversity, environmental protection, and non-deforestation aligns with these SDGs.