Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection and Energy Saving
• Employee Relation and Social Contribution

Environmental Achievements

• Reduced electricity intensity by 3%
• Reduced waste intensity by 7%
• Reduced GHG intensity by 5.57%
• Reduced water consumption intensity by 12.3%
• 7.33% renewable energy used
• Delta Plant 5 received LEED Gold certification

Social Achievements

• Launched Delta Energy Education Program (DEEP), educating 5,516 students
• Contributed approximately 15 million Baht to local and national communities
• 93% of Thai employees joined the labor union
• 82% employee satisfaction
• Reduced cost of injury and accident by 37%

Governance Achievements

• Attained an “Excellent” score for Corporate Governance (CG) from the Thai Institute of Directors Association (IOD)
• Implemented anti-corruption training for all employees
• Settled two of three whistleblowing cases

Climate Goals & Targets

Environmental Challenges

• Rapid urbanization and climate change
• Shift in global economic power
• Demographic and social change
• Technological breakthroughs
• Skilled labor force shortage

Mitigation Strategies

• Energy intensity reduction projects
• Delta Smart Manufacturing
• Developed alternative sourcing strategies
• Green and ethical supply chain
• Green product design
• Business contingency plan
• Focus on automation and energy management solutions
• Maintain R&D investment
• Green design & green supply chain development

Supply Chain Management

Supplier Audits: 47 suppliers audited in 2017

Responsible Procurement

• Delta Supplier Management Policy (based on EICC code of conduct)
• Procurement and Supplier Covenants
• Requesting certifications in Quality, Environment, and Occupational Health & Safety
• Signing of “Integrity Statement” and “RBA (EICC) Commitment Statement”

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Difference of governmental policies
• Difference in supply and demand behavior

Opportunities

• Growth in Power Electronics, Automation and infrastructure solutions

Reporting Standards

Frameworks Used: GRI Standards: Core Option, Dow Jones Sustainability Index, SET Sustainability Awards

Certifications: ISO 50001, ISO 9001:2015, ISO 13485, ISO 14001, ISO 14064-1, ISO/TS 14067:2013, ISO/IEC 17025, OHSAS 18001, IATF 16949, TL 9000, IEC-61340-5-1, ANSI/ESD S20.20, ISO 27001, TS 16949, LEED Gold

Third-party Assurance: SGS (partial), AA1000AS

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

Various CSR activities and projects

Sustainable Products & Innovation

• High efficiency power supply units
• PV inverters
• DC-DC converters
• Telecom power supplies

Awards & Recognition

• Rising Star Award and Thailand Sustainability Investment Award at SET Sustainability Awards 2017
• Sustainability Report Award 2017: Recognition level
• Three Gold Level National Occupational Safety and Health Awards 2017
• Eco Factory Award 2017
• Four awards at the 100 Hearts Effort to Reduce Global Warming Event
• Green Industry Award 2017 Level 4
• Thailand Energy Awards 2017 in two categories
• Thailand’s Top Corporate Brand Values Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Received the Thailand Energy Awards 2023 for its Smart Farm with renewable energy project.
• Received the Thailand Energy Award 2022 for Energy Management Team at Designated Factory (Delta Plant 6).
• Achieved 21% renewable energy use in 2023.
• Reduced GHG intensity for Scope 1 and 2 (location-based) to 19.87 tons of CO2e/MUSD and for Scope 1 and 2 (market-based) to 16.80 tons of CO2e/MUSD, representing a decrease of 11% for location-based and 25% for market-based emissions from last year.
• Achieved a 96.6% waste diversion rate.

Social Achievements

• Participated in the project “CHOICEISYOURS 2023” to encourage students to express their creativity based on the “Circular Economy” concept.
• Won top ranking at Alpha Southeast Asia’s 13th Institutional Investor Corporate Awards for ‘Best Annual Report In Thailand’, ‘Most Organised Investor Relations’, and ‘Most Consistent Dividend Policy’.
• Voted first for the “Most Outstanding Company in Thailand - Technology Hardware & Equipment Sector” in the 2023 Asiamoney Asia’s Outstanding Companies Poll.
• Rated “Excellent” for the seventh consecutive year in the 2023 Corporate Governance Report of Listed Companies (CGR 2023).
• Awarded the highest “A” grade as a “Supplier Engagement Leader” in the 2022 Supplier Engagement Rating (SER) by the CDP.
• Awarded the CMMU ESG Award 2023 for Best Discloser.
• Improved employee engagement through various initiatives including the HR Service Desk Project, Delta My Club, and Khanom Talk.

Governance Achievements

• Announced as a constituent of the FTSE4Good Index Series and the Dow Jones Sustainability Indices (DJSI) 2023.
• Joined 100 of Thailand’s best-performing public listed companies for ESG aspects for the ninth consecutive year in the 2023 Thaipat Institute ESG100 Universe.
• Implemented COSO Enterprise Risk Management, ISO 31000 and GRC framework for risk management.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown and recession risks.
• Cautious technology spending.
• Inflation instability, multiple historic union strikes and the start of the Israel-Hamas conflict.
• Geopolitical tensions.
• Climate change and extreme weather events.
• Raw material insufficiency (semiconductors, IGBT, SiC/GAN Mosfet, IC Power management).
• Supply chain disruptions.
• Stiff competition from low-cost competitors.
• Potential liquidity risk due to large investments in renewable energy.
• Insufficient talents to handle new technologies and compliances.
• Technology risk: misinformation and disinformation.
• Operational risk: new disease/injury due to technology development.
• Insufficient renewable energy sources to achieve RE100 and Net Zero Target.

Mitigation Strategies

• Prudent business strategy and cautiously optimistic approach to seizing opportunities.
• Bolstered manufacturing capacity with the completion of new Plant 8 and R&D facilities.
• Sharpened focus on manufacturing resilience with expansions in India and Europe.
• Accelerated smart manufacturing implementation.
• Investments in R&D.
• Implementation of new technologies and diversification of solutions and services.
• Ramping up localization of supply chain by engaging overseas partners and encouraging Thai suppliers.
• Internal carbon fee mechanism.
• Adoption of more energy-saving solutions.
• Funding innovative low-carbon technologies.
• Developing robust and rapid-response planning capabilities.
• Refining sales strategies to better align with customer demand and improve profitability.
• Implementation of Dynamic Lot Holding Capacity (DL HC).
• Establishing strategic alliances with key semiconductor manufacturers.
• Implementing a flexible manufacturing system.
• Developing a robust local supply chain.
• Utilizing various financial tools and internal carbon pricing mechanism.
• Regular monitoring of liquidity risk.
• Talent Leader Development program and Cohesion camp.
• Cross-border same function visit.
• Delta Club to fund employee’s interest.
• Free Psychiatrist service.
• Leading budget for external training.
• Utilizing and incentivizing specialists as internal trainers.
• Offering faster promotion period.
• Establishing stakeholder engagement and Corporate Communication policy.
• Implementing ISO27001 standards.
• Emergency preparedness plan.
• Digitalization and automation of business and manufacturing processes.
• Additional on-site PPE and medical instruments.
• Engaging machine and technological instruments suppliers to provide training.
• Encouraging critical machines, instrument, and chemical suppliers to participate in work environment inspections.
• Creating a RE100 Management Board.
• Investing in purchasing unbundled REC.
• Initiating internal carbon pricing mechanism.
• Partnering with other RE energy and regulators.

Supply Chain Management

Supplier Audits: 100% of suppliers signed the “Declaration of Compliance with RBA Code of Conduct”, RBA On-Site Audit conducted for local suppliers.

Responsible Procurement

• Supplier ESG Questionnaire (Enterprise Management, Health Safety, Environment & Employee)
• Audits and coaching for at-risk suppliers
• Green Supply Chain establishment
• Delta Carbon Emission Reduction Project
• Regular supplier communication and learning activities
• Conflict Minerals/Metals-free Policy
• RBA Verification and Consultation

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Rising energy prices
• Global urgencies to reverse climate action failure
• Higher environmental standard and regulation

Opportunities

• Growth in EV charging and green data center solutions.

Reporting Standards

Frameworks Used: GRI, TCFD, UNGP, RBA, ILO, COSO, ISO 31000, GRC

Certifications: ISO 14001, ISO 50001, ISO 14064-1, ISO 27001, OHSAS 18001, IATF16949, TL9000, ISO/IEC 17025, IEC-61340-5-1, ANSI/ESD S20.20, AEO, ISO 13485, IECQ QC 080000

Third-party Assurance: SGS (Thailand) Company Limited, EY Office Limited

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• EV charging products
• Power supplies and thermal management solutions
• High-efficiency power devices
• 1kW and 30kW wireless charging systems
• Open Compute ORV3 platform with Power Shelf, 3kW PSUs and Rack Controller

Awards & Recognition

• Thailand Best Employer Brand Awards 2024
• Thailand Energy Awards 2023
• Thailand Energy Award 2022
• Alpha Southeast Asia’s 13th Institutional Investor Corporate Awards
• Asiamoney Asia’s Outstanding Companies Poll
• CMMU ESG Award 2023
• CDP Supplier Engagement Leader