Hotron Precision Electronic Industrial Co., Ltd.
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environmental Protection
- Employee Welfare
- Corporate Governance
Environmental Achievements
- Acquired ISO 14001:2015 Environment Management System Certificate
- Acquired ISO 50001 power management system third-party certificate
- Implemented various energy-saving and waste reduction measures in offices and factories
- Suzhou plant engaged in ISO14064-1:2018 greenhouse gas inventory
Social Achievements
- Established Employee Welfare Committee
- Provided group accident insurance and business travel insurance
- Regular health check-ups for employees
- Various employee welfare measures (year-end party, funeral/wedding subsidies, birthday allowance, holiday allowance, travel subsidy)
- Employee training programs (new employee training, professional skills training, supervisory skills training, other training)
Governance Achievements
- Established Audit Committee and Remuneration Committee
- Implemented corporate governance best practices
- Regularly evaluates external auditors’ independence
- Established corporate governance officer
- Established "Risk Management Policy and Procedure"
Climate Goals & Targets
Long-term Goals:
- Developing electric vehicle products (high-voltage charging guns and internal high-voltage wiring)
Medium-term Goals:
- Accelerating internationalization efforts
- Integrating group company resources
- Expanding connector development in telecommunications, consumer electronics, and automotive industries
- Seeking favorable investment opportunities
Short-term Goals:
- Developing high-end high-frequency transmission cables
- Optimizing outsourced production efficiency
- Expanding automated production equipment and processes
- Developing new customer sources
- Enhancing automation in production
- Manufacturing electric vehicle charging connectors
Environmental Challenges
- Intense price competition, decline in gross profit
- Significant fluctuations in raw material prices
- Steadily increasing labor costs in mainland China
- Impact of the U.S.-China trade war and import tariffs
- Global economic downturn, high raw material prices, inefficient international transportation, shortages of key electronic components
Mitigation Strategies
- Investing in R&D of new technologies and processes
- Developing new products to enhance product quality
- Promoting automation in production
- Actively developing new customer sources
- Conservative approach to copper procurement
- Recruitment of skilled professionals
- Continuous improvement of production processes towards automation
- Investment in automated production equipment
- Reinforcement of outsourced production and manufacturing
- Expansion of production capacity
- Establishing Hotron Vietnam to adopt a localized production and distribution system
Supply Chain Management
Responsible Procurement
- Supplier Environmental Protection Production Commitment
- Code of Conduct – Responsible Business Alliance
- Guarantee of not using conflicts minerals
- Metal source investigation and not using conflicts metal declaration
- Ethical conduct commitment
Climate-Related Risks & Opportunities
Physical Risks
- Abnormal climates (flood, drought, wind disaster)
Transition Risks
- Changes in environmental regulations
- Increased costs of raw materials
Opportunities
- Demand for renewable energy products
Sustainable Products & Innovation
- Environmentally friendly, halogen-free products