Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Saved a total of 147,677 kWh of electricity in 2022.
• Average emission monitoring values in 2022 met local air pollution emission standards.
• Wastewater discharge in 2022 complied with local discharge standards.
• Reduced approximately 153.9549 tons of carbon dioxide emissions since 2019 through various energy-saving measures.

Social Achievements

• Overall customer satisfaction score in 2022 was 8.49 points.
• No violation of customer privacy rights occurred in 2022.
• Proportion of domestic procurement was 97% in 2022.
• No human rights-related complaints were received in 2022.
• No transportation-related accidents occurred in 2022.
• Total new recruitment rate in 2022 was 14.580%, a decrease of 2.31% from 2021.
• Total turnover rate in 2022 was 19.440%, a decrease of 0.43% from 2021.
• Regular labor-management meetings were held.

Governance Achievements

• Consolidated operating net profit increased by 13.10% in 2022 compared with 2021.
• Consolidated net operating income in 2022 was NT$2,591,122,000.
• A total of 6 people received education and training on integrity management issues in 2022, totaling 42 hours.
• There were no corruption cases in 2022, and internal employees underwent a total of 152 hours of anti-corruption education and training with 80 people.

Climate Goals & Targets

Environmental Challenges

• Global economic decline, sluggish consumption, and slow inventory removal.
• Increased pressure to reduce carbon emissions due to regulations like the EU’s CBAM and Taiwan's carbon fee.

Mitigation Strategies

• Employing IoT technology and digital tools to collect and analyze data for energy-saving plans and process improvements.
• Using smart logistics to reduce production carbon emissions.

Supply Chain Management

Responsible Procurement

• 97% domestic procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD, SASB

Certifications: ISO 14001, IECQ Hazardous Substance Process Management

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Economy
• Environment
• Society (human rights)

Environmental Achievements

• Saved a total of 61,440 kWh of electricity in 2023.
• Average emission monitoring values in 2023 met local air pollution emission standards.
• Wastewater discharge in 2023 complied with local discharge standards.

Social Achievements

• In 2023, there were no human rights-related complaints.
• No transportation-related accidents occurred in 2023.
• Regular labor-management meetings were held to facilitate communication.
• Three labor safety education training sessions were conducted in 2023, with 85 participants.
• The overall customer satisfaction score for 2023 was 8.43.

Governance Achievements

• Consolidated operating net profit increased by 19.63% in 2023 compared with 2022.
• A total of 4 people received education and training on integrity management issues in 2023, totaling 57 hours.
• There were no corruption cases in 2023, and internal employees underwent a total of 164 hours of anti-corruption education and training with 109 people.

Climate Goals & Targets

Environmental Challenges

• Global end-product demand weakened due to high inflation, high interest rates, and geopolitical tensions, slowing manufacturing activities worldwide.
• Economic sanctions between the US and China, the Russia-Ukraine war, Gaza conflict, and Red Sea crisis further adversely affected global economic development and social stability.
• Carbon regulations will force companies to strengthen sustainability governance.
• Fierce price competition between domestic and foreign peers.
• Risk of outsourcing quality and delivery stability.

Mitigation Strategies

• Integrating sustainability and carbon management into operations and supply chains.
• Early adoption of sustainable supply chain management and digital transformation.
• Adjusted market positioning by enhancing product value through quality control and production automation.
• Turned to new markets, new products and new fields to enhance its operational momentum and reduce the impact of the external environment.
• Improved the proportion of local procurement of raw materials and find alternative solutions for multiple suppliers.
• Strengthened basic research, developed key process technologies, strengthened the commercialization ability of technologies and strengthened the link and communication efficiency of the supply chain system.
• The overseas investment plan has been adopted to produce and manufacture screws in the Vietnamese subsidiary, so as to take advantage of local cost advantages and reduce operational risks.

Supply Chain Management

Supplier Audits: Evaluated 146 suppliers using a Corporate Social Responsibility Self-assessment Questionnaire. 42 key low-risk suppliers and 104 non-key low-risk suppliers identified.

Responsible Procurement

• Establish long-term and stable cooperative relations with domestic suppliers and outsourcers
• Requires suppliers to submit relevant legal documents as evidence when signing contracts

Climate-Related Risks & Opportunities

Physical Risks

• Changes in temperature and precipitation patterns lead to shortage of raw materials and price increase
• The supply uncertainty of water and energy is rising
• Extreme weather leads to the destruction of factories and equipment, resulting in a decline in productivity

Transition Risks

• Energy shortage and price increase
• Government regulations to manage natural resources more effectively and reduce disaster risks

Opportunities

• Using low-emission energy, shifting to decentralized energy production, developing or expanding low-carbon products and services

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD

Certifications: ISO 9001, ISO 14001, IATF 16949, A2LA laboratory certification

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 13 (Climate action)