Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection and Energy Conservation
• Social Engagement and Employee Care
• Risk Management
• Ethical Corporate Management
• Sustainable Supply Chain Management
• Responsible Sourcing

Environmental Achievements

• Reduced paper consumption by approximately 52,664 sheets (equivalent to saving 6.32 trees) compared to 2020.
• Reduced total carbon emissions from water use by 13.63% compared to 2020.
• Reduced water consumption by 6% compared to 2020.

Social Achievements

• Launched a comprehensive employee wellness program, earning the "National Healthy Workplace - Vitality Award", "Sports Enterprise Certification 2021", and "Representative Enterprise for Employing Sports Instructors".
• Introduced the "Health at Your Fingertips" app for personalized health management.
• Implemented a mobile four-cancer screening unit for employees and the community.
• Introduced an employee share ownership trust program.

Governance Achievements

• Developed an intellectual property management plan.
• Formulated "Ethical Corporate Management Best Practice Principles" and "Codes of Ethical Conduct".
• Established a "wrongdoing reporting system".

Climate Goals & Targets

Environmental Challenges

• Potential impact on revenue and goodwill due to tightening climate-related regulations, increased frequency of extreme weather events, and changes in consumer behavior.
• Potential additional carbon reduction costs due to varying local regulatory requirements across Alltek's global client base.
• Potential supply chain disruptions due to increased extreme weather events.
• Potential disruptions to information and network systems due to power outages.

Mitigation Strategies

• Adopting the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
• Developing sustainable and innovative design solutions.
• Implementing a climate governance management plan.
• Developing 81 sustainable technology-related solutions with customers.
• Prioritizing local and green sourcing in supply chain management.
• Developing a Supplier Code of Conduct based on the Responsible Business Alliance (RBA) Code of Conduct.

Supply Chain Management

Supplier Audits: 100% of 10 key suppliers audited for compliance with EU RoHS Directive and REACH regulation in 2021.

Responsible Procurement

• Supplier Code of Conduct based on RBA Code of Conduct.
• Prioritizing suppliers with AEO certification.
• Encouraging customers to purchase electronic components free of hazardous substances or halogens.
• Prioritizing low-energy products for customers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events leading to supply chain disruptions.
• Energy price increases due to rising global temperatures.
• Power outages due to energy shortages.

Transition Risks

• Increased carbon reduction costs due to government regulations.

Opportunities

• Increased demand for sustainable and innovative products.
• Growth in demand for non-hazardous and environmentally friendly electronic components.

Reporting Standards

Frameworks Used: GRI Standards 2016, SASB standards, TCFD

Certifications: ISO 9001:2015, TTQS Bronze Certification

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives such as energy saving, carbon reduction, water conservation, and waste management contribute to these goals.

Sustainable Products & Innovation

• Sustainable technology-related solutions in vehicle-to-everything development, industrial automation, smart metering devices, smart home applications, and LED lighting applications.

Awards & Recognition

• "National Healthy Workplace - Vitality Award"
• "Sports Enterprise Certification 2021"
• "Representative Enterprise for Employing Sports Instructors"
• "Health Promotion Label"
• "CHR Healthy Corporate Citizenship - Bronze Award"
• "Sports Enterprise" accreditation

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Integrity Management
• Information Security
• Employee Welfare and Care

Environmental Achievements

• Reduced paper consumption by 96,053 sheets (equivalent to 11.53 trees) compared to 2021.
• Reduced electricity consumption by 18,417 kWh compared to 2021.
• Reduced water consumption by 2.33% compared to 2021.
• Saved 668 cartons and NT$139,881 due to carton consolidation.

Social Achievements

• Organized the “3rd Healthy Together on LINE” event, resulting in 19,568 kg of carbon reduction and planting 1,080 trees.
• Zero cases of disabling injury reported throughout the year.
• Organized 4 health seminars/courses with 262 participants.
• Awarded the Silver Award in the 2022 CHR Healthy Corporate Citizenship by Health Magazine.

Governance Achievements

• Implemented a Warehouse Management System (WMS) resulting in 0 shipping errors and 100% on-time delivery, delivery accuracy, and inventory accuracy rate from 2019 to 2022.
• Organized annual training on “Code of Ethical Conduct” and “Anti-Corruption” for 209 employees.
• Formulated the “Intellectual Property Management Plan”.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions due to the COVID-19 pandemic, including transportation issues between China and Hong Kong, and the Shanghai lockdown.
• Climate change risks, including increased operating costs due to rising temperatures and extreme weather events.

Mitigation Strategies

• Implemented WMS for efficient warehousing operations and coordinated with logistics providers for alternative transportation methods.
• Implemented moisture-proof treatment for cargo during the rainy season.
• Promoted energy management and monitoring to improve energy efficiency.
• Developed alternative sourcing strategies.

Supply Chain Management

Supplier Audits: 17 service suppliers assessed in 2022; 11 met Supplier CSR Commitment requirements (64.71% compliance rate)

Responsible Procurement

• Supplier Code of Conduct based on Responsible Business Alliance (RBA) Code of Conduct.
• Conflict minerals management and due diligence based on OECD Due Diligence Guidance.

Climate-Related Risks & Opportunities

Physical Risks

• Increased operating costs due to rising temperatures and increased power consumption.
• Increased risk of damage to goods during transportation due to extreme weather events.

Transition Risks

• Increased operating costs due to government policies promoting renewable energy and the EU's Carbon Border Adjustment Mechanism (CBAM).

Opportunities

• Increased product revenue through agency and sales of low-carbon products.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2021 version), TCFD, SASB

Certifications: Null

Third-party Assurance: SGS Taiwan Ltd.

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 16

Initiatives contribute to these goals through employee well-being, education and training, gender equality, decent work, infrastructure development, reduced inequalities, responsible consumption and production, climate action, and peace and justice.

Sustainable Products & Innovation

• Sustainable technology-related solutions for connected cars, industrial automation, smart metering devices, smart homes, and LED lighting.

Awards & Recognition

• 2022 Silver Award in the CHR Healthy Corporate Citizenship by Health Magazine.
• 2021 Bronze Award in the CHR Healthy Corporate Citizenship by Health Magazine.
• 2021 iTaiwan iSports Certification.
• 2021 National Excellent Healthy Workplace - Vitality Award.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Integrity Management
• Information Security
• Employee Welfare and Care
• Climate Change
• Biodiversity
• Supply Chain Management
• Human Rights

Environmental Achievements

• Reduced paper usage by 58,799 sheets compared to 2022, saving approximately 7.06 trees.
• Reduced electricity usage by 2,500 kWh compared to the previous year.
• Reduced total water usage by 13.61% compared to the previous year.
• Saved 948 paper boxes due to combined box operations in the warehouse, resulting in savings of 116,699 NTD.
• 100% recycling of received paper boxes and packaging materials in the warehouse.
• Recycled 4,439 kilograms of paper boxes, reducing approximately 23,482 kilograms of CO2e carbon emissions.
• Reduced total greenhouse gas emissions by 3.24% compared to the previous year, and 6.68% compared to the baseline year (2021).
• Alltek Marine Electronics Corp. completed automation of two remote island lighthouses, replacing diesel generators with solar and wind power systems.

Social Achievements

• Received awards for workplace well-being, including the "16th TCSA Taiwan Corporate Sustainability Awards - Workplace Well-being Leadership Award" and the "2023 CHR Healthy Corporate Citizenship (for companies with fewer than 500 employees): Platinum Award."
• Zero occupational accidents throughout the year.
• Provided 1,663.5 hours of annual education and training for employees.
• Participated in 10 social inclusion activities.
• Obtained "Age-Friendly Workplaces" certification from Taipei City and New Taipei City Governments.
• Implemented a volunteer leave program.

Governance Achievements

• 100% of board members received anti-corruption education and training.
• 100% attendance rate of Remuneration Committee members.
• No significant negative news or compliance incidents.
• Established a dedicated information security department.

Climate Goals & Targets

Environmental Challenges

• Transportation of equipment and building materials to remote islands for lighthouse automation projects.
• Harsh working environment on remote islands during lighthouse automation projects.
• Urgent schedule for lighthouse automation projects.
• Climate change risks (transition and physical risks).

Mitigation Strategies

• Developed alternative sourcing strategies and moisture-proof wrapping for goods during transportation.
• Implemented comprehensive risk management policies and procedures.
• Established a dedicated information security department and implemented various information security protection measures.
• Developed a green energy microgrid system for lighthouse automation, reducing reliance on diesel generators.

Supply Chain Management

Supplier Audits: 17 service providers assessed in 2023; 11 met "Supplier CSR Commitment" requirements (64.71% compliance rate).

Responsible Procurement

• Supplier Code of Conduct based on Responsible Business Alliance (RBA) Code of Conduct.
• Due diligence framework for responsible supply chains of minerals from conflict-affected and high-risk areas.
• Conflict Minerals Reporting Template (CMRT).

Climate-Related Risks & Opportunities

Physical Risks

• Temperature rise increasing electricity consumption.
• Increased intensity and frequency of typhoons and rainstorms causing damage to goods during transportation.

Transition Risks

• Increase in operating costs due to policy changes (e.g., carbon pricing, renewable energy mandates).
• Increased electricity prices for industrial use.

Opportunities

• Increase product revenue by expanding agency of green component production lines.
• Reduction of operating costs through efficient distribution processes and transportation modes.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2021 version), TCFD, SASB

Certifications: Null

Third-party Assurance: SGS Taiwan Ltd.

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 8
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Various initiatives contribute to these goals as detailed in the report.

Sustainable Products & Innovation

• Automated medical care robots
• Fiber optic transceiver modules
• Data center optical transmission modules
• Electric vehicle charging pile
• Electric bicycle
• Electric scooters
• Green Energy Treadmill
• Digital electricity meter
• Recycled grid-connected simulation power supply
• High-voltage energy storage system
• Uninterruptible power supply (UPS)
• Smart traffic lights and smart signals
• Outdoor floodlight cameras
• Emergency lighting systems
• Searchlights
• Smart green energy germicidal lighting
• Battery charging system
• Battery energy recovery test system
• Battery formation system

Awards & Recognition

• Bronze Award for Corporate Sustainability Report in the 2023 Taiwan Corporate Sustainability Awards (TCSA)
• Platinum Award in the 5th "CHR Healthy Corporate Citizenship" awards