Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Product liability
• Occupational health and safety
• Labor and ethics

Environmental Achievements

• Reduced energy consumption from 19.53 million kilowatt-hours in 2014 to 16.61 million kilowatt-hours in 2016; increased to 18.67 million kilowatt-hours in 2017 due to increased production capacity. Power consumption per every thousand dollars reduced from 4.42 per kilowatt-hour in 2016 to 3.45 per kilowatt-hour in 2017.
• Scopes 1 and 2 GHG emissions per thousand dollars of revenue reduced by 20.0% from 0.0035 tonne of CO2 in 2016 to 0.0028 tonne of CO2 in 2017.
• Generated 6.26 tonnes of hazardous waste in 2017, 9.0% less than 6.88 tonnes in 2016.
• Energy consumption per HK$100 million of revenue dropped from 57.51 tonnes of standard coal for 2016 to 44.87 tonnes for 2017, a drop of 22.0%.

Social Achievements

• Continuous improvements in fulfilling different social responsibilities according to ISO9001, ISO14001, OHSAS18001, QC080000 and the code issued by the Electronic Industry Citizenship Coalition (“EICC”).
• Underwent several audits required by clients under the code issued by the EICC and one Validated Audit Process (VAP) by EICC in 2017. Findings showed initiatives to prevent labor or human rights incidents.
• Over 85 suppliers underwent on-site audits in 2017.
• No work-related fatality was recorded in 2017. A total of 2 work-related accidents were noted (less than 3 in 2016).
• Average annual training hours (excluding induction) completed per senior and junior employee were 25.5 hours and 20 hours, respectively.

Governance Achievements

• Established 4 management systems (ISO9001, QC080000, ISO14001, OHSAS18001) at its China subsidiary.
• Complied with the code provisions set out in the Corporate Governance Code, except for the deviation from code provision A.2.1 (Chairman and CEO roles held by the same person).

Climate Goals & Targets

Environmental Challenges

• Fast-moving and highly competitive environment with shortened product life cycles.
• Technological change requiring prompt responses.
• Lack of capable talents in development of new applications and technologies.
• Risk of discontinuance of business partnerships with AMD and NVIDIA.
• Contingency: Patent infringement allegations by ZiiLabs Inc., Ltd.

Mitigation Strategies

• Investing in talents and automation in manufacturing plants.
• Delegating resources on environmental, social and corporate responsibilities.
• Maintaining good relationships with partners, customers, and suppliers.
• Appointing US lawyers to handle the patent infringement investigation and filing a response to the complaint.

Supply Chain Management

Supplier Audits: 85+/year

Responsible Procurement

• Assessing supplier performance in terms of environmental compliance, occupational health and safety, labor, and ethics.
• Requiring written undertakings to comply with social responsibility policies.
• Using social responsibility performance as a criterion for selecting new suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO9001, ISO14001, OHSAS18001, QC080000, EICC

Certifications: ISO9001, ISO14001, OHSAS18001, QC080000

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Product Liability
• Occupational Health and Safety
• Labor and Ethics

Environmental Achievements

• Scopes 1 and 2 GHG emissions showed a downward trend between 2017 and 2018.
• Adopted power consumption technologies (LED lights, solar energy, process optimization) to reduce power consumption rate per ten thousand dollars.
• Atmospheric emissions from tin furnaces, soldering furnaces, and kitchens passed annual tests by third-party organizations.
• Scopes 1 and 2 GHG emissions maintained at 0.0028 tonne of CO2 per thousand Hong Kong dollars in both 2017 and 2018 despite increased production output.

Social Achievements

• No work-related fatality was recorded in 2018.
• Three minor work-related accidents occurred in 2018 due to employee negligence; causes investigated and improvements made.
• All employees completed required annual training (average 24.5 hours for senior employees and 19.5 hours for junior employees, excluding induction).
• Upgraded management system to align with the latest EICC Standard, emphasizing labor protection and UN principles.

Governance Achievements

• Training on codes of business ethics and conduct provided to staff.
• Underwent several client audits under the EICC code and one VAP by EICC in 2018; findings showed initiatives to prevent labor or human rights incidents.
• No complaints of non-compliance or corruption and bribery in 2018.
• Established a documented privacy policy and implemented training and agreements for staff.

Climate Goals & Targets

Environmental Challenges

• Increase in electricity consumption in 2018 due to increased production output.
• Increase in scopes 1 and 2 GHG emissions in 2018 due to increased production capacity.
• Increase in hazardous waste (6.4%) and household wastewater (18.3%) in 2018 due to increased production and improved staff living conditions.

Mitigation Strategies

• Continued efforts to improve energy utilization (enhancing production lines, developing automatic equipment, using energy-saving products and advanced technologies).
• Implementation of measures to reduce emissions from tin furnaces, soldering furnaces, and kitchen exhaust systems (improved operation schedules, emission reduction facilities, regular maintenance).
• Initiatives to reduce water consumption and minimize wastewater (water-saving management, water consumption facilities upgrades).
• Waste reduction initiatives (improved production techniques, pollution-free chemicals, simple packaging, electronic operations, staff training).

Supply Chain Management

Supplier Audits: 81 on-site audits (2018)

Responsible Procurement

• Suppliers required to fulfill social responsibilities (environmental, occupational safety and health, labor, human rights, ethics); written undertakings required; social responsibility performance a selection criterion.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO9001, ISO14001, OHSAS18001, QC080000, EICC

Certifications: ISO9001, ISO14001, OHSAS18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Product liability
• Occupational health and safety
• Labor and ethics

Environmental Achievements

• Reduced electricity consumption from 21.43 million kilowatt-hours in 2018 to 18.51 million kilowatt-hours in 2019, mainly due to decreased production output.
• Decreased power consumption per every thousand dollars from 3.46 per kilowatt-hour in 2018 to 3.08 per kilowatt-hour in 2019.
• Scopes 1 and 2 GHG emissions decreased by 14.0% from 17,132.71 tonnes of CO2 in 2018 to 14,738.46 tonnes of CO2 in 2019.
• Reduced hazardous waste by 6.5% from 6.66 tonnes in 2018 to 6.23 tonnes in 2019.
• Reduced non-hazardous solid waste by 11.3% from 53.50 tonnes in 2018 to 47.47 tonnes in 2019.
• Household wastewater decreased by 17.1% from 254,207 cubic meters in 2018 to 210,655 cubic meters in 2019.

Social Achievements

• No work-related fatalities or accidents in 2019.
• All employees completed required annual training (average 22.79 hours for senior employees and 19.72 hours for junior employees, excluding induction).
• 76 suppliers underwent on-site social responsibility audits in 2019.
• No products were returned or recalled for safety reasons in 2019.

Governance Achievements

• Ongoing compliance with laws and regulations, fulfilling social responsibilities according to ISO9001, ISO14001, OHSAS18001, QC080000, and EICC code.
• Established ISO13485 (Medical Equipments Quality System) to meet customer requirements.
• Adopted a nomination policy in March 2019 and reviewed a board diversity policy.

Climate Goals & Targets

Environmental Challenges

• 17.2% revenue decline in 2019, mainly due to decreased VGA card sales (18.5% decline).
• Excessive VGA card inventory in the market after the 2018 cryptocurrency crash.
• Decline in EMS business (10.3% decline) due to fewer ATM and POS system orders.
• Decline in other PC-related products (12.6% decline) due to decreased demand for blockchain application systems.
• US tariffs on computer hardware made in China.
• Slowdown of the Chinese economy.
• COVID-19 pandemic impacting manufacturing operations and supply chain in early 2020.

Mitigation Strategies

• Write-down of slow-moving inventory and clearance of older VGA cards at a loss.
• Efforts to reduce inventory levels throughout the year.
• Cautious inventory management in the future.
• Tight cost control, including reduced conversion costs and operating expenses.
• Reduction of workforce and performance bonuses.
• Outsourcing production to Taiwan to avoid US tariffs.
• Monitoring the impact of supply chain disruptions due to COVID-19 and taking action to minimize impact.
• Exploring new business opportunities and investing in joint ventures (data center).

Supply Chain Management

Supplier Audits: 76/year

Responsible Procurement

• Assessment of supplier performance in environmental compliance, occupational health and safety, labor, and ethics.
• Requirement for suppliers to provide written undertakings to comply with social responsibility policies.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO9001, ISO14001, OHSAS18001, QC080000, EICC

Certifications: ISO9001, ISO14001, OHSAS18001, QC080000

Environmental Metrics

ESG Focus Areas

• Environment
• Employment
• Operation
• Society

Environmental Achievements

• Reduced Scope 1 GHG emission by 32.0% (from 149.22 tonnes of CO2 in 2019 to 101.51 tonnes in 2020).
• Reduced Scope 2 GHG emission by 12.7% (from 14,589.24 tonnes of CO2 in 2019 to 12,730.05 tonnes in 2020).
• Reduced total scopes 1 and 2 GHG emissions by 12.9% (from 14,738.46 tonnes of CO2 in 2019 to 12,831.56 tonnes in 2020).
• Reduced hazardous waste by 6.9% (from 6.23 tonnes in 2019 to 5.80 tonnes in 2020).
• Reduced hazardous liquid waste by 11.1% (from 2.80 tonnes in 2019 to 2.49 tonnes in 2020).
• Reduced non-hazardous solid waste by 2.6% (from 47.47 tonnes in 2019 to 46.22 tonnes in 2020).
• Reduced household wastewater by 20.2% (from 210,655 cubic meters in 2019 to 168,208 cubic meters in 2020).
• Reduced electricity consumption by 12.7% (from 1,850.72 ten of thousands kilowatt-hours in 2019 to 1,614.88 ten of thousands kilowatt-hours in 2020).
• Reduced total energy consumption by 13.4% (from 2,368.72 tonnes of standard coal equivalent in 2019 to 2,052.22 tonnes in 2020).

Social Achievements

• Decreased employee turnover rate from 217.5% in 2019 to 118.5% in 2020.
• Decreased staff turnover rate from 18.4% in 2019 to 10.3% in 2020.
• Decreased factory worker turnover rate from 401.7% in 2019 to 213.4% in 2020.
• 748 employees enrolled in different training programs (excluding induction program), representing 38.7% of the average number of employees in 2020.
• Implemented COVID-19 prevention measures, including work-from-home options, flexible hours, and provision of face masks and sanitizers.

Governance Achievements

• Established a top-down ESG governance structure with a working team reporting to the BOD.
• Implemented a new project management system in 2019 to enhance the security of engineering designs.
• Conducted annual internal audits for occupational safety, hygiene, labor interests, ethics, and other social responsibilities in accordance with ISO45001 and EICC standards.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Maintaining compliance with evolving environmental regulations.
• Managing high employee turnover rates, particularly among factory workers.

Mitigation Strategies

• Implemented flexible work arrangements and COVID-19 prevention measures.
• Engaged third-party organizations to monitor emissions and ensure compliance.
• Improved employee benefits and training programs to reduce turnover.

Supply Chain Management

Supplier Audits: 48/year

Responsible Procurement

• Supplier assessment based on quality, environmental protection, occupational health and safety, labor interests, human rights, and ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX Appendix 27

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Emissions
• Waste Management
• Water and Effluent Handling
• Energy Efficiency
• Use of Materials
• Environmental Compliance
• Natural Resources Consumption
• Climate Change
• Labour Rights
• Labour-Management Relations
• Employee Retention
• Diversity and Equal Opportunity
• Discrimination
• Occupational Health and Safety
• Employee Training
• Employee Development and Career Advancement
• Prevention of Child Labour and Forced Labour
• Supplier’s Quality and Compliance
• Supplier Assessment
• Customer Satisfaction
• Product and Service Quality Assurance
• Customer Complaints Handling
• Product Liability and Compliance with Regulations
• Protect Intellectual Property
• Consumer Privacy and Data Protection
• Corruption and Business Ethics
• Community Support
• Charity Donation

Environmental Achievements

• Reduced GHG emissions per million HK$ of cost of production output by 35.14% from 2.6153 tonnes of CO2 per million HK$ in 2020 to 1.6964 tonnes of CO2 per million HK$ in 2021.
• Reduced hazardous waste per million HK$ of cost of production output by 33.33% in 2021 compared to 2020.
• Reduced energy consumption per million HK$ of cost of production output by 32.39% in 2021 compared to 2020.
• Reduced water consumption per million HK$ of cost of production output by 33.32% in 2021 compared to 2020.

Social Achievements

• Achieved zero work-related fatalities in 2021.
• Over 98% of employees in PC Partner Dongguan received training, with an average of 21.48 hours per employee.
• No incidents of workplace discrimination reported in 2021.
• No products recalled for safety and health reasons in 2021.
• No products or services related complaints received in 2021.
• No concluded legal cases regarding corrupt practices in 2021.

Governance Achievements

• Established business ethics policy to prevent corruption, bribery, and other illegal actions.
• Implemented whistle-blowing channels to receive complaints from stakeholders.
• No complaints received related to misconduct, malpractices, or irregularities in 2021.

Climate Goals & Targets

Environmental Challenges

• Significant increase in air pollutant emissions in 2021 due to increased generator use because of energy rationing by the PRC government.
• Significant increase in non-hazardous waste in 2021 due to a change in the cleansing process.
• 2 work-related injuries with 79 lost days due to work-related injuries were recorded.

Mitigation Strategies

• Implementing measures to reduce discharges and emissions (improving operation schedules, streamlining production plans, installing emission reduction facilities, etc.).
• Planning to install sewage treatment facilities in 2022 to reuse wastewater and reduce waste.
• Implementing general waste reduction measures (continuous waste reduction through production technique improvements, using improved techniques and pollution-free chemicals, etc.).
• Investigating the use of electricity of each premise and activity to optimize the use of electricity through upgrades and better scheduling of production, lighting, air-conditioning and so forth.
• Improving water consumption facilities and reusing the water for cooling down the air-conditioners in the premises.
• Conducting investigations and implementing improvement measures to prevent future work-related injuries.

Supply Chain Management

Supplier Audits: Annual internal audit by a third-party agency to assess the effectiveness of the QC080000 Hazardous Substance Process Management System.

Responsible Procurement

• Rigorous supplier selection criteria and procurement procedures.
• Requirement for suppliers to provide certifications and documents proving compliance with RoHS and REACH regulations.
• Due diligence assessment of environmental and social matters.
• Providing relevant guidance to suppliers on environmental and social responsibility requirements.

Climate-Related Risks & Opportunities

Transition Risks

• Potential government instructions or restrictions on GHG emissions in the future.

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide, GRI Standards

Certifications: ISO 45001, ISO 9001

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Responsibility
• Governance

Environmental Achievements

• Total GHG emissions per million HK$ of cost of production output decreased by 34.35% from 1.6964 tonnes of CO2 per million HK$ in 2021 to 1.1137 tonnes in 2022.
• Non-hazardous waste produced per million HK$ of cost of production output decreased by 59.31% compared to 2021.
• Energy consumption per million HK$ of cost of production output decreased by 13.49% compared to 2021.
• Water consumption per million HK$ of cost of production output decreased by 13.13% compared to 2021.
• Packaging material used for finished goods per million HK$ of cost of production output decreased by 12.24% compared to 2021.

Social Achievements

• Zero work-related fatalities in the past three years, including 2022.
• No lost days due to work-related injuries in 2022 (compared to 79 lost days in 2021).
• Approximately 72.85% of employees in PC Partner Dongguan received training, averaging 11.26 hours per employee.
• No incidents of workplace discrimination reported.

Governance Achievements

• Established a two-tier governance structure consisting of the Board and an ESG working team.
• Implemented business ethics policy to prevent corruption, bribery, and other illegal actions.
• Provided anti-corruption training to 809 employees in PC Partner Dongguan and 40 employees in the Hong Kong office.

Climate Goals & Targets

Environmental Challenges

• Potential risks from climate change, including extreme weather events and regulatory changes.
• Maintaining competitiveness in the industry while protecting employee interests and rights.

Mitigation Strategies

• Insurance plans to safeguard employees and assets against extreme weather events.
• Regular monitoring of climate-related policies and regulations.
• Implementation of various energy-saving and resource optimization measures.
• Formulating human resources policies and employee handbooks to ensure fair treatment of employees.

Supply Chain Management

Supplier Audits: 48 on-site inspections with environmental and social impact assessments

Responsible Procurement

• Rigorous supplier selection criteria and procurement procedures
• Requirement for suppliers to provide certifications and documents proving compliance with RoHS and REACH regulations
• Due diligence assessment procedures for environmental and social matters

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)

Transition Risks

• Regulatory changes related to GHG emissions

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide, GRI Standards

Certifications: ISO 45001, ISO 9001

Environmental Metrics

ESG Focus Areas

• Environmental Compliance
• GHG Emission Management
• Waste Management
• Energy Efficiency Management
• Water and Effluent Handling
• Use of Packaging Materials
• Employment Practices
• Diversity and Equal Opportunity
• Occupational Health and Safety
• Employee Training
• Employee Development and Career Advancement
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Customer Service
• Consumer Privacy and Data Protection
• Intellectual Property Rights Protection
• Anti-corruption and Business Ethics
• Community Support

Environmental Achievements

• Reduced packaging material usage for PC Partner Dongguan’s operations by 7.89% compared to 2022.
• Successfully passed annual compliance tests for atmospheric emissions from tin furnaces, soldering furnaces, and kitchens.
• Implemented sewage treatment facilities allowing for water reuse on its premises.

Social Achievements

• Achieved zero work-related fatalities for the past three years, including the reporting period.
• Implemented Regulations for Grievances, Complaints, and the Prevention of Retaliation.
• Provided training to 92.36% of employees, with an average of 14.04 training hours per employee.

Governance Achievements

• Established a two-tier governance structure consisting of the Board and the ESG Working Team.
• Formulated policies to prevent potential corruption, bribery, and other illegal actions.
• Implemented a product recall procedure.

Climate Goals & Targets

Environmental Challenges

• Increase in emission of air pollutants compared to 2022 due to increased natural gas consumption from a newly added factory, higher vehicle usage, and pandemic recovery activities.
• Increase in total GHG emissions and intensity in 2023 due to the newly added factory, higher vehicle usage, and pandemic recovery activities.
• Increase in non-hazardous waste produced due to the newly added factory.
• Increase in hazardous waste produced due to the introduction of a new waste gas treatment facility.
• Increase in total energy consumption and intensity in 2023 due to the newly added factory, higher vehicle usage, and pandemic recovery activities.
• Increase in water consumption due to the inclusion of water consumption from the newly added factory.
• 5 work-related injuries with 325 lost days due to work-related injuries were recorded during the Reporting Period.

Mitigation Strategies

• Implementing measures to reduce discharges and emissions, and enhance energy efficiency (detailed in the report).
• Implementing measures to control the consumption and production of non-hazardous waste (detailed in the report).
• Establishing a tracking and treatment process for hazardous waste.
• Implementing general waste reduction measures (detailed in the report).
• Taking various energy-saving and optimization measures (detailed in the report).
• Implementing comprehensive yearly water efficiency initiatives (detailed in the report).
• Investigating work-related injuries and implementing improvement measures to prevent future occurrences.

Supply Chain Management

Supplier Audits: 62 on-site inspections and 22 environmental and social impact assessments.

Responsible Procurement

• Rigorous supplier selection criteria and procurement procedures.
• Requirement for suppliers to provide certification, documents, and samples for laboratory testing to prove compliance with RoHS directive and REACH regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods) interrupting water and electricity supplies, damaging properties, and threatening employee safety.

Transition Risks

• Government instructions or restrictions on GHG emissions.
• Stricter HKEx policies and regulations related to climate change.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide, GRI Standards

Certifications: ISO 45001, ISO 9001, IECQ QC080000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed