Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced electricity consumption by 1.5%
• Recycled 73% of treated sewage water (exceeding the 60% target)
• Reduced paper consumption by 2.09 million sheets
• Recycled 371,510 touch screens and 638,631 LCDs (18.34 tons of e-waste reduction)

Social Achievements

• Launched HTC Power To Give, a smartphone initiative to contribute computing power to scientific projects
• Provided 4,969 hours of English learning resources
• Hired 868 student workers and provided comprehensive training
• Provided various employee welfare programs including health checks, travel subsidies, and recreational facilities

Governance Achievements

• Implemented a robust corporate governance framework aligned with TWSE/GTSM best practices
• Maintained an A+ rating for information disclosure
• Established an internal audit system reporting to the Board of Directors
• Implemented anti-corruption training programs

Climate Goals & Targets

Environmental Challenges

• Meeting market expectations in a competitive environment
• Supply chain disruptions (implied by conflict minerals discussion)
• Managing climate change risks (e.g., extreme weather events)
• Maintaining brand loyalty

Mitigation Strategies

• Launched comprehensive reforms and re-adjusted business pace
• Developed alternative sourcing strategies for conflict minerals
• Implemented risk management mechanisms to address climate change and other risks
• Launched global marketing communication programs to enhance brand awareness

Supply Chain Management

Supplier Audits: 20 in 2011, 30 in 2012, 30 planned for 2013 but cancelled due to business reasons. Resumed in 2014.

Responsible Procurement

• HTC Supplier Code of Conduct based on EICC Code of Conduct
• Conflict Minerals Procurement Policy
• Green procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Regional natural disasters (floods, typhoons, droughts)

Transition Risks

• Laws and standards for energy-efficient products
• Customer guidelines for carbon emission disclosure

Opportunities

• Green innovation business (reduced packaging, recycled materials)
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Core Option, AA1000 (2008)

Certifications: ISO 14001, OHSAS 18001, IECQ QC080000

Third-party Assurance: SGS-Taiwan

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• HTC One (M7, M8), HTC One Max (UL Environment Platinum Certificate)
• HTC One (M8) with extreme power-saving mode

Awards & Recognition

• LEED Gold Certification for TPE1 building
• Taiwan Green Building Gold Label for TPE1 building
• Green Award from New Taipei City Environmental Bureau for Taipei headquarters

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity use by up to 49.83% compared to 2016, resulting in a 50.20% reduction in carbon emissions.
• Achieved a sewage recycling rate of 73.99%, up from 72.54% in 2016.

Social Achievements

• Launched Taiwan’s first AI medical service chat robot, "Wan Xsiao-Fang", and the chatbot "Disease Manager" for influenza vaccine information.
• Developed VIVEPAPER, an augmented reality system for interactive media content.
• Developed DeepQ Medical Encyclopedia for easy-to-understand medical information.

Governance Achievements

• Received an A+ rating for the sixth consecutive time in the information disclosure assessment of the Securities and Futures Institute.
• Ranked among the top 20% of companies with excellent performance in the Corporate Governance Evaluation.

Climate Goals & Targets

Environmental Challenges

• How to enhance brand loyalty
• Fierce competition in the worldwide mobile market resulting in lower revenues and gross profits.
• Managing climate change risks (unstable power supply, regional natural disasters, changing laws and standards for energy-efficient products).

Mitigation Strategies

• Strengthening product functions, reducing overall costs, and strictly controlling expenses.
• Adjusting and optimizing production processes to improve efficiency and reduce energy consumption.
• Developing alternative sourcing strategies.
• Implementing relevant risk management policies and standards for measuring risk, including foreign exchange hedging.

Supply Chain Management

Supplier Audits: 20 suppliers audited annually

Responsible Procurement

• HTC Supplier Code of Conduct based on Responsible Business Alliance Code of Conduct
• Green supply chain management platform
• HTC Conflict Minerals Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Unstable or limited power supply
• Regional natural disasters

Transition Risks

• Laws and standards for energy-efficient products

Opportunities

• Adjusting and optimizing production processes to improve efficiency and reduce energy consumption
• Planning how to work with suppliers to improve the efficiency of packing and transportation
• Introduction of a green supply chain
• Looking for green innovation business

Reporting Standards

Frameworks Used: GRI Standards Core Option, AA1000 (2008) standards

Certifications: ISO 14001, OHSAS 18001, ISO 50001, IECQ QC080000 Hazardous Substance Process Management

Third-party Assurance: SGS-Taiwan

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 17: Partnerships for the Goals

Initiatives using VR technology for education and healthcare, partnerships for VIVE ecosystem expansion.

Sustainable Products & Innovation

• HTC U11
• HTC U11 EYEs
• HTC VIVE Pro
• VIVE Wireless Adaptor

Awards & Recognition

• 2017 Best Game Product Award (VIVE Tracker)
• 29 Awards from CES 2018 (HTC VIVE)
• Gold Award from Deutschen Telekom AG (CSR performance)
• LEED Gold Certification (Taipei headquarters)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Waste recycling rate significantly increased over the last ten years, by 87%
• Attained management level (B- grade) in the climate change rating of the Carbon Disclosure Project (CDP)
• Recycled 2,965 metric tons of rainwater in 2021 by the Taipei office
• Conserved 346,135 kWh of electricity with 2021 power conservation measures, achieving 1% power conservation and the goal for the year.

Social Achievements

• Launched the Campus Influenza Vaccine System (CIVS), optimizing the vaccination process to improve vaccination records
• Launched the first cross-hospital AI+Blockchain Medical Care Line Bot, Dr. Lan
• Received the Silver Award by EcoVadis, ranking in the top 15% among 90,000 companies
• Maintained stable production line in Taiwan during the COVID-19 pandemic, avoiding supply chain disruption through early material preparation and strategic procurement

Governance Achievements

• Upgraded CSR Committee to ESG Committee, chaired by the Chairwoman
• Appointed its first Chief Sustainability Officer
• Established dedicated working groups to respond to various ESG issues and founded the ESG Office

Climate Goals & Targets

Environmental Challenges

• Prolonged market disruption caused by the ongoing pandemic
• Supply chain constraints impacted the output of certain components and caused an increase in prices
• Climate change related risks (transition risks: policy and legal, technology, market, goodwill; physical risks: acute and chronic)
• Fined NTD 6,000 by the EPB, Taoyuan City, in 2021 for non-registration in the industrial waste disposal plan

Mitigation Strategies

• Maintained its engineering and design edge, delivering high-quality hardware, software, platforms, and services
• Conducted early material preparation and strategic procurement to avoid supply chain disruption
• Paid more attention to production efficiency and the relationship with suppliers
• Developed alternative sourcing strategies
• Implemented various energy-saving measures, including improving building lightings and air-conditioning systems, and offering shuttle buses for work
• Revised and approved the disposal procedure for waste produced from after-sale maintenance by the EPB

Supply Chain Management

Supplier Audits: 6 high-risk suppliers audited in 2021

Responsible Procurement

• HTC Supplier Code of Conduct
• RBA Code of Conduct
• Conflict-Free Smelter Program
• Compliance with RoHS, REACH, and other regulations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)
• Changes in precipitation patterns

Transition Risks

• Policy and legal changes
• Technological changes
• Market shifts
• Changes in consumer preferences

Opportunities

• Resource efficiency (recycling, efficient buildings, reduced water usage)
• Energy sources (lower-emission sources)
• Products and services (low-emission goods and services)
• Markets (access to new markets, public-sector incentives)
• Resilience (renewable energy programs, energy-efficiency measures)

Reporting Standards

Frameworks Used: GRI Standards Core Option, AA1000 standards

Certifications: ISO 14001, ISO 45001, QC080000, ISO 27001, ISO 27701

Third-party Assurance: SGS-Taiwan

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives contributing to SDGs through various programs and partnerships in healthcare, education, 5G development, sustainable manufacturing, and climate change mitigation.

Sustainable Products & Innovation

• VIVE Flow (reduced carbon footprint and power consumption)
• VIVE Tracker 3.0 (improved size, weight, and recycling rate)
• VIVE Pro 2 (more recyclable materials)

Awards & Recognition

• CES® 2022 Innovation Awards Honoree (VIVE Pro 2)
• 2021 Esquire Gadget Award- Best Wearable Tech (VIVE Flow)
• EcoVadis Sustainability Silver Medal (2022)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced paper consumption by 80% compared to 2022.
• Achieved a 4.2% reduction in electricity consumption.
• Recycled 3,522 metric tons of rainwater in 2023.
• VIVE XR Elite's ISO-14067 product carbon footprint data verified by SGS.

Social Achievements

• Won the "Enterprise Category" of the 2023 National Sustainable Development Award.
• Achieved EcoVadis Sustainability Silver Medal, ranking top 15% globally.
• Improved leadership level in CDP Supplier Engagement Rating and Climate Change score.
• Won the "Information Security Leadership Award" at the 16th Taiwan Corporate Sustainability Awards.

Governance Achievements

• Escalated CSR Committee to ESG Committee.
• Obtained results in the range of 21%-35% in the 10th (2023) Corporate Governance Evaluation.
• Published the first standalone TCFD report, independently verified by SGS.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown impacting business environment.
• Competition in the VR hardware market.
• Need to enhance brand loyalty and increase market share.

Mitigation Strategies

• Continued investment in strategic technologies and VIVERSE vision.
• Development of innovative VR headsets and accessories (VIVE XR Elite, Ultimate Tracker, etc.).
• Focus on integrated solutions and broader audiences.
• Strengthening marketing resources and brand image.

Supply Chain Management

Supplier Audits: 36 audits (number of factories) in 2023; 100% on-site audits.

Responsible Procurement

• HTC Supplier Code of Conduct aligned with RBA Code of Conduct.
• Conflict-free minerals sourcing.
• ESG performance assessments incorporated into quarterly business reviews.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in rainfall patterns
• Increase in average temperatures

Transition Risks

• Revision of labor-related laws and regulations
• Rising costs of raw materials
• Increased pricing on greenhouse gas emissions

Opportunities

• Development of energy-efficient products and services
• Diversification of business activities
• Participation in incentive policies

Reporting Standards

Frameworks Used: GRI Standards: 2021, SASB, UN Sustainable Development Goals (SDGs), AA1000

Certifications: ISO 14001, ISO 45001, IECQ QC080000, ISO 27001, ISO 27701, ISO 27799, ISO 50001, ISO 14064-1, ISO 14067

Third-party Assurance: SGS-Taiwan

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 17

HTC integrates SDGs into corporate operations and business development planning; initiatives across various business units contribute to multiple SDGs.

Sustainable Products & Innovation

• VIVE XR Elite (modular design, recycled packaging)
• VIVE Ultimate Tracker
• HTC U23 pro and U23 series (high recycling rate)

Awards & Recognition

• 2023 National Sustainable Development Award
• 2023 EcoVadis Sustainability Silver Medal
• FTSE4Good Index Series constituent (two consecutive years)
• CDP Supplier Engagement Leaderboard (Grade A)
• Taiwan Corporate Sustainability Award (Platinum Grade and Information Security Leadership Award)