Climate Change Data

Ya Horng Electronic Co., Ltd.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:997 tCO2e/year (2022)
Waste Generated:33.94 tons/year (2022)

ESG Focus Areas

  • Environmental protection
  • Employee welfare
  • Ethical corporate management

Environmental Achievements

  • Reduced CO2 emission from electricity consumption from about 1,183 metric tons in 2021 to about 997 metric tons in 2022
  • Reduced CO2 emission from water consumption from about 2.4 metric tons in 2021 to about 2 metric tons in 2022
  • Implemented various energy conservation and carbon reduction measures, including reducing air conditioner hours and raising set temperature, purchasing energy-saving lamps, and gradually replacing old equipment.
  • Actively promotes electronic operation, reduces paper use, recycles toner cartridges, and cooperates with suppliers to recycle product cartons and packaging materials.

Social Achievements

  • Established an employee welfare committee providing festival and birthday bonuses, subsidies for weddings, funerals, childbirth, and hospitalization, regular health checks, employee travel activities, various leisure activity clubs, year-end dinner, year-end bonus, and employee bonus.
  • Implemented systematic annual training and various irregular courses, sending personnel for lectures and providing grants to those who pass specific certification examinations.
  • Formulated retirement measures to protect employees on their retirement and pension, setting aside a pension reserve monthly and appropriating pensions to individual labor pension accounts.
  • Maintained harmony between labor and management, upholding employee benefits, personal job satisfaction, and a good working environment.

Governance Achievements

  • Formulated a code of ethical conduct, with the board of directors and management performing their functions and powers prudently.
  • Established an effective accounting system and internal control system, with internal auditors regularly auditing compliance.
  • Established regulations in the Employee Code for employees to follow when performing their duties.
  • Implemented authority management, access control, and information security risk prevention measures, including daily and weekly local backups and off-site storage of backup media.

Climate Goals & Targets

Medium-term Goals:
  • Invest in the R&D of digital mixers and digital amplifiers to expand different market areas
  • Strengthen the R&D of electronic musical instrument products and software
  • Actively improve the design capability of high-class vinyl record players, and expand the market of mid to high-class vinyl record players
  • Establish production bases outside Taiwan and China to provide higher production flexibility
  • Use the current R&D foundation to strengthen the R&D team, and find partners to expand different product lines and increase turnover
  • R&D and production of high value-added products to increase output value and develop new customers
  • Continue to introduce/cultivate R&D members and strengthen product design and R&D capabilities
  • Be continuously committed to the design and development of electric heaters and coffee machines, and expanding the diversification of small home appliances
  • Strengthen the cultivation of planning personnel, master the latest market demand, and combine the development of patented technology to provide high-quality products to customers
  • Integrate internal smart Netcom design capabilities, develop and manufacture smart home appliances
  • Strengthen market research, grasp market opportunities and demand and improve product competitiveness
  • Lock and plan the future market demand and customer demand for products, and timely grasp the opportunities to expand the product portfolio
  • Expand the U.S. and mainland China markets, actively seek long-term partners, improve the Company’s capacity utilization ratio
  • Plan to expand Taiwan’s production capacity scale, and actively seek countries to establish new production bases, in order to provide more flexible production services to meet the challenges of the future international trade war
  • Continue product design R&D with global brands, learn from each other and cooperate to innovate products, improve the R&D capabilities, and expand diversified product lines
  • Maintain and improve product quality, plant management and production efficiency, eliminate resource waste, reduce costs and improve the Company’s operating profit
  • Update the system requirements for healthcare quality (MDSAP/MDR, etc.), meet the requirements for medical product sales/production qualification in Europe and the U.S., and increase the competitiveness of medical equipment production
Short-term Goals:
  • Integrate DJ products and improve production efficiency
  • Expand the business of electronic musical instrument products and increase turnover
  • Strengthen core-technology products and develop innovative products in line with market trends
  • Expand the high-end HiFi turntable market
  • Improve service quality, meet customer needs, and establish good customer relations
  • Be committed to process improvement and quality control to improve management efficiency and customer satisfaction
  • Reduce production and material costs, control management costs, reduce failure costs, and improve profits
  • Timely understand and grasp customers’ future prospects and policies, steadily expand product lines and increase turnover
  • Improve production efficiency and maintain quality control

Environmental Challenges

  • Shortage of parts and the impact of the epidemic
  • Fluctuations in the cost and price of international raw materials, rising wages, and the appreciation of the exchange rate of Taiwan dollar and RMB
  • High proportion of export sales, greatly affected by exchange rate changes
  • Risk from concentration of sales
Mitigation Strategies
  • Looking for new material substitutes to reduce raw material costs and reduce the financial risk of material inventory.
  • Outsourcing some mature products or processes with high labor demand to overseas factories with relatively low labor costs.
  • Implementing automated production to increase production capacity and control quality to reduce wage costs.
  • Investing in a factory in the Philippines as another production base.
  • Implementing the complete production process specification, strengthening management, and training production technicians to improve production efficiency.
  • Standardizing and sharing parts and components, and reducing unnecessary part molding.
  • Considering exchange rate changes in customer quotations and foreign currency conversion at an appropriate time to minimize exchange risk.
  • Strengthening product sales in other sales regions and developing new customers to diversify possible risks.

Supply Chain Management

Responsible Procurement
  • Third-party supplier evaluation methods and third-party manufacturer management methods, requiring suppliers to meet the requirements in the method.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Regulations Governing the Preparation of Financial Reports by Securities Issuers, IFRSs, IASs, IFRIC, SIC

Certifications: ISO9001, ISO13485

Third-party Assurance: Ernst & Young, Taiwan

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1016.72 tCO2e/year (2023)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:15,178 m3/year (2023)
Waste Generated:28.51 tons/year (2023)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental Protection
  • Labor Relations
  • Information Security
  • Sustainable Development
  • Ethical Corporate Management

Environmental Achievements

  • Reduced CO2 emission from electricity consumption from 891.97 metric tons in 2022 to 1,016.72 metric tons in 2023. Reduced total waste weight from 33.94 metric tons in 2022 to 28.51 metric tons in 2023. Implemented power-saving measures, replacing fluorescent lamps with LED fluorescent lamps.
  • Introduced RoHS and REACH standards

Social Achievements

  • Established employee welfare committee providing festival and birthday bonuses, subsidies for weddings, funerals, childbirth, and hospitalization, regular health checks, employee travel activities, various leisure activity clubs, year-end dinners, year-end bonuses, and employee bonuses.
  • Implemented career development and training programs for employees.
  • Formulated retirement measures to protect employees on their retirement and pension for their services.

Governance Achievements

  • Established an Audit Committee and Compensation Committee.
  • Formulated a code of ethical conduct.
  • Established an effective accounting system and internal control system.

Climate Goals & Targets

Long-term Goals:
  • Use the current R&D foundation to strengthen the R&D team, and find partners to expand different product lines and increase the turnover.
  • R&D and production of high value-added products to increase output value and develop new customers.
  • Maintain and improve product quality, plant management and production efficiency, eliminate Resource waste, reduce costs and improve the Company's operating profit.
  • Update the system requirements for health care quality (MDSAP/MDR, etc.), meet the requirements for medical product sales/production qualification in Europe and the U.S., and increase the competitiveness of medical equipment production.
Medium-term Goals:
  • Invest in the R&D of digital mixers and digital amplifiers to expand different market areas.
  • Strengthen the R&D of electronic musical instrument products and software.
  • Actively improve the design capability of high-class vinyl record players, and expand the market of mid to high-class vinyl record players.
  • Establish production bases outside Taiwan and China to provide higher production flexibility.
  • Continue to introduce/cultivate R&D members and strengthen product design and R&D capabilities.
  • Be continuously committed to the design and development of electric heaters and coffee machines, and expanding the diversification of small home appliances.
  • Strengthen the cultivation of planning personnel, master the latest market demand, and combine the development of patented technology to provide high-quality products to customers.
  • Integrate internal smart Netcom design capabilities, develop and manufacture smart home appliances.
  • Expand the U.S. and mainland China markets, actively seek long-term partners, improve the Company’s capacity utilization ratio.
  • Plan to expand Taiwan's production capacity scale, and actively seek countries to establish new production bases, in order to provide more flexible production services to meet the challenges of the future international trade war.
Short-term Goals:
  • Focus on inventory management, eliminate parts inventory, and maintain a reasonable inventory level.
  • Making products more competitive and lowering prices through product differentiation design to improve product value.
  • Actively launching new products and expanding overseas markets to provide customers with faster and better services, with a view to increasing the Group's revenue.
  • Improve service quality, meet customer needs and establish good customer relations.
  • Be committed to process improvement and quality control to improve management efficiency and customer satisfaction.
  • Reduce production and material costs, control management costs, reduce failure costs, and improve profits.

Environmental Challenges

  • Material shortage and cost increase caused by supply chain imbalance.
  • Weak recovery of the global economy, fluctuations in the cost and price of international raw materials, rising wages, and the appreciation of the exchange rate of Taiwan dollar and RMB.
  • High proportion of export sales, greatly affected by exchange rate changes.
Mitigation Strategies
  • Focus on inventory management, eliminate parts inventory, and maintain a reasonable inventory level.
  • Making products more competitive and lowering prices through product differentiation design to improve product value.
  • Reinvesting in the labor-intensive Southeast Asian subsidiaries, diversifying the risk of European and American markets’ boycott of China manufacturing, and reducing production costs.
  • Look for new material substitutes to effectively reduce the cost of raw materials, and reduce the financial risk of material inventory.
  • Outsourcing some mature products or processes with high labor demand to overseas factories with relatively low labor costs.
  • Implementing automated production to increase production capacity and control quality to reduce wage costs.
  • Actively investing in the factory in the Philippines as another production base for some audio and video products.
  • Implementing the complete production process specification, strengthening the management, and training of production technicians to improve production efficiency.
  • Standardizing and sharing parts and components, and reducing unnecessary part molding.
  • Including the possible exchange loss arising from the exchange rate change in the consideration of the quotation to current customers.
  • Adopting a single currency as far as possible in terms of foreign exchange funding arrangement to manage foreign exchange assets and liabilities.
  • Keeping close relationships with dealing banks, keeping abreast of exchange rate changes at any time, and taking timely response measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • The company has clear relevant prevention provisions internally, including requesting the counterparty to provide the company certificate or conduct credit investigation, in order to avoid damaging the reputation of the Company due to transactions with unethical suppliers and customers.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO9001, ISO13485

Third-party Assurance: Ernst & Young, Taiwan

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed