Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recycled 300 tons of tungsten carbide materials, reduced water consumption by 60,000 tons, and saved electricity by one million degrees.
• Shenzhen Fugui Precision Industry Co., Ltd. subsidiary earned its green factory certification from the National Ministry of Industry and Information Technology.

Social Achievements

• Launched the Fii Safe Resumption of Work App, integrating data collection, processing, analysis, and visualization for epidemic prevention.
• Invested RMB 656,000 in community development activities.
• Invested RMB 824,700 of funds and materials to support targeted poverty alleviation work.

Governance Achievements

• Established an information disclosure system and internal and external communication channels.
• Introduced a semi-quantitative risk rating system to improve each site’s risk response capability.
• Established a complete internal management and control system.

Climate Goals & Targets

Environmental Challenges

• Complex and changeable global situation leading to fluctuations in exchange rates and material prices.
• Potential risks in areas including external, compliance, strategy, and operations.

Mitigation Strategies

• Reduce financial risk through measures including foreign exchange forward contracts and currency swap contracts.
• Established a strategic cooperation mechanism with suppliers, upgrading our supply chain management system to protect us against price volatility.
• Developed an industrial internet system to track global inventory level.
• Incorporated 12 high-priority risks into the crisis management plan, creating crisis management procedures in advance.

Supply Chain Management

Supplier Audits: 117 on-site audits

Responsible Procurement

• Foxconn Supplier Social and Environmental Responsibility Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO9001:2015, ISO14001, OHSAS18001 (or ISO45001), ISO27001

Awards & Recognition

• Public Welfare Contribution Award of China's Listed Companies
• World Economic Forum Davos Manufacturing Lighthouses

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Supply Chain Sustainability
• Renewable Energy

Environmental Achievements

• Developed nearly 50 MW of distributed photovoltaic systems by the end of 2021.
• Plans to achieve approximately 3,050 MW of renewable energy development and investment by 2030.
• Achieved remarkable energy-saving results through air conditioning system upgrades, reducing electricity consumption by approximately 1,320,000 kWh per year.
• Introduced intelligent PDUs for server aging testing, reducing electricity consumption by approximately 77,000 kWh per year.
• Introduced automatic burn-in equipment, saving 90% of manpower and reducing electricity by approximately 262,000 kWh per year.
• 100% of key suppliers signed the Supplier social and environmental responsibility (SER) code of conduct in 2020.

Social Achievements

• Helped CITIC Dicastal Co., Ltd. achieve the global “Lighthouse Factory” award, helping it to reduce production costs by 33%, improve overall equipment efficiency by 21.4%, reduce defective products by 20.9% and shorten product delivery time by 37.9%.
• Incubated 10 internal “Lighthouse Factories”, with plants in Shenzhen, Chengdu, Wuhan and Zhengzhou successfully certified as world lighthouse factory certification.

Governance Achievements

• Established the Enterprise Risk Management (ERM) system and the Global RCMC in 2021.
• Developed a climate-related incentive mechanism to reward teams and individuals for their contribution to energy saving and carbon emission reduction targets.
• Conducts monthly, semi-annual and annual performance evaluations for employees, including energy conservation and carbon emission reduction performance.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (e.g., heavy rains in Henan Province in 2021).
• Meeting customer demands for carbon neutrality by 2030.
• Compliance costs associated with carbon emissions trading systems and potential future carbon border taxes.
• Determining a reasonable internal carbon price for an effective internal carbon pricing mechanism.

Mitigation Strategies

• Established a risk technology plan for “acute physical factors” risks, analyzing exposure to natural disasters and proposing mitigation measures.
• Completed natural disaster assessments for 46 buildings in 23 business units.
• Formulated a series of management documents such as Carbon Management Requirements of Suppliers and Supplier Greenhouse Gas Management Code of Practice.
• Exploring and studying ways to determine a reasonable carbon price for an internal carbon pricing mechanism.

Supply Chain Management

Supplier Audits: 100% of key suppliers signed the Supplier social and environmental responsibility (SER) code of conduct in 2020.

Responsible Procurement

• Carbon Management Requirements of Suppliers
• Supplier Greenhouse Gas Management Code of Practice
• Prioritizing suppliers with high production automation and energy efficiency.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (e.g., typhoons, floods)

Transition Risks

• New regulations (e.g., carbon border taxes)
• Changes in market demand

Opportunities

• Development of low-carbon emission products and services
• Resource efficiency improvements (e.g., FMCS)

Reporting Standards

Frameworks Used: ISO 14064-1, Greenhouse Gas Protocol, SBTi

Certifications: ISO 14064-1 (10 sites), ISO 50001 (some energy-intensive suppliers), UL2799 (Platinum - Shenzhen Longhua campus, Gold and Silver - Vietnam plant)

Third-party Assurance: UL

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy development, energy efficiency improvements, and carbon emission reductions.

Sustainable Products & Innovation

• Energy-saving servers
• Industrial internet application with carbon emission management functions
• Smart Facility Management and Control System (FMCS)

Awards & Recognition

• Two upward ESG ratings from MSCI in 2021
• FTSE score better than 84% of global peers in 2021
• Hang Seng Index A rating for three consecutive years (top 10% of peers)
• Green Factory award in Tianjin
• Star of Energy Saving award in Tianjin Development Zone

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainable Supply Chain
• Sustainable Governance
• Social Value Creation
• Employee-centric Employment
• Climate Change

Environmental Achievements

• Reduced carbon emissions by 15.3万吨 in 2022 (300% increase year-on-year)
• 12 green factories certified
• 5 UL2799 zero waste to landfill gold-level certifications
• Nanning campus achieved UL2799 zero waste to landfill platinum-level certification

Social Achievements

• 786 volunteer service activities conducted in 2022, with 34,338 participants and 153,383 service hours
• Continued support for disadvantaged groups, environmental protection, and rural revitalization

Governance Achievements

• Established an ESG advancement team to improve ESG performance and ratings
• 100% of key suppliers signed the Supplier Social and Environmental Responsibility (SER) Code of Conduct
• MSCI ESG rating upgraded to BBB

Climate Goals & Targets

Environmental Challenges

• Market changes due to climate change
• Emerging regulations related to carbon emissions
• Extreme weather events impacting operations
• Supply chain disruptions

Mitigation Strategies

• Energy transition to increase renewable energy usage
• Setting carbon neutrality targets and pathways
• Risk assessment and crisis management
• Development of low-carbon products and services
• Improving resource efficiency

Supply Chain Management

Supplier Audits: 55 audits in 2022, 93% pass rate

Responsible Procurement

• Supplier Social and Environmental Responsibility (SER) Code of Conduct
• Conflict Minerals Reporting Template (CMRT)
• Cobalt Reporting Template (CRT)
• Mica Reporting Template (MRT)
• Scorecard system for supplier performance management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in regulations and policies

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, UN SDGs, TCFD recommendations, AA1000AS v3

Certifications: ISO 14001, ISO 50001, ISO 9001:2015, IATF16949:2016, ISO 27001, ISO 31000, ISO 37301, ISO 45001, UL 2799

Third-party Assurance: 华测认证有限公司

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action
• Goal 14: Life Below Water
• Goal 15: Life On Land
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Energy-efficient servers
• Recyclable plastic products

Awards & Recognition

• China Industrial Carbon Peak Leader Enterprise
• Outstanding Responsible Enterprise 2021
• Best ESG Practice Award
• ESG Pioneer Award
• ESG Exemplary Practice Award

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social contribution
• Refined governance

Environmental Achievements

• Reduced operational carbon emissions by 40% from the base year
• Achieved 61% renewable energy use
• 12 factories certified as green factories (75% of key energy-consuming units)
• 12 units certified by UL 2799 for Zero Waste to Landfill (Gold Level and above) (52% of key environmental and energy-consuming units)
• Implemented energy-saving projects, achieving 158,000 tons of carbon emission reduction
• 952 energy-saving and carbon reduction projects implemented across parks
• 18 units certified by ISO 50001 (78% of key energy-consuming units)
• Photovoltaic installations grew by 117% to reach a total of 82.2 MW
• RMB900 million investment in energy conservation and environmental protection

Social Achievements

• Annual collective bargaining agreements reached 100% employee coverage
• 34 Fii sites achieved ISO 45001 certification
• 94 suppliers completed carbon inventory and reduced carbon emissions by 44,000 tons
• Local procurement of indirect raw materials and equipment accounted for 96.74%
• RMB40,134,000 invested in public welfare
• 1,296 volunteer service events, 38,628 participants, 108,579 volunteer service hours
• 100% coverage of fire detection systems on key rooftop areas in Chinese mainland
• 100% employee coverage for insurance, retirement allowance, and pension
• Average employee occupational health-and-safety training: ~19 hours per person
• Long-term equity incentive plan covered 20% of key talent
• Female management representation reached 22.4%
• Zero occupational diseases caused by chemical exposure
• Ten types of chemicals phased out and replaced
• Annual average employee training hours per capita reached 105.7 hours
• 1,890 recent graduates recruited

Governance Achievements

• 100% of Board members participated in board meetings, 100% meeting attendance rate for special committees
• 100% information security incident handling rate (no violations)
• 100% business ethics training and dissemination completion rate
• Three independent directors (43% of total Board members)
• Zero reported cases of corruption, bribery, etc.
• 100% of entities/individuals on the global blacklist imported into the contract system risk database
• Zero legal cases related to corruption or unfair competition
• 100% risk management training completion rate
• Female directors increased to 29%
• Over RMB43.8 billion in cash dividends cumulatively distributed since 2018
• ISO 27001 certification (11 subsidiaries)
• ISO 31000 and ISO 37301 certification (Fii and 2 subsidiaries)

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Promoting local procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 50001, UL 2799, ISO 45001, ISO 31000, ISO 37301, ISO 27001

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water Resource Management
• Supply Chain Sustainability
• Circular Economy

Environmental Achievements

• Implementing internal carbon pricing
• Promoting construction and certification of ISO14001, ISO50001, UL2799, Green Factory, and Zero Carbon Factory
• Increasing the proportion of raw materials verified by third parties
• Actively researching and developing materials for recycling or extending the lifespan of materials
• Advancing UL2809 Recycled Content Validation

Social Achievements

• Regularly organizing training, promotion, activities, and awards related to environmental topics for employees and supply chain partners
• Working with local communities in water-scarce areas to improve water resource management

Governance Achievements

• Fii's environmental management is based on the framework of the company's ESG system, authorized by the Board of Directors.
• ESG-E Strategy Group coordinates the development of management strategies and objectives

Climate Goals & Targets

Environmental Challenges

• Minimizing the negative environmental impact of raw material usage
• Reducing the negative impact of the company's production operations on biodiversity
• Reducing water wastage and pollution
• Improving water use efficiency

Mitigation Strategies

• Avoiding using raw materials from globally or nationally significant biodiversity sites
• Developing a sustainable site maintenance plan to enhance biodiversity
• Improving water use efficiency through advanced water management technologies and processes
• Promoting water recycling and reuse
• Using advanced treatment technologies and management systems to prevent pollution

Supply Chain Management

Responsible Procurement

• Requiring suppliers to comply with Fii's water resource management guidelines
• Collaborating with suppliers to ensure raw materials and processes respect biodiversity
• Incorporating the company's commitment to non-deforestation into supplier management requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs, Convention on Biological Diversity (CBD), Alliance for Water Stewardship (AWS) Standard

Certifications: ISO14001, ISO50001, UL2799 Zero Waste to Landfill, Green Factory, Zero Carbon Factory

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

Fii's environmental management is guided by the Sustainable Development Goals (SDGs).