Climate Change Data

ASIA OPTICAL CO., INC.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Established the ISO 14001 environment management system
  • Promoted energy-saving projects with a goal of 1% energy saving per year
  • Implemented measures to respond to climate-related issues (in progress)

Social Achievements

  • Established the Employee Welfare Committee
  • Provided various insurance payment privileges
  • Implemented the Act of Gender Equality In Employment
  • Provided various employee benefits (marriage & death subsidies, annual holiday bonuses, etc.)
  • Provided a safe and healthy working environment with ISO 45001 certification
  • Held regular and irregular employee trainings

Governance Achievements

  • Established the Audit Committee in 2016
  • Established the “ESG Steering Committee” and “ESG Committee” in 2021
  • Established “Ethical Corporate Management Best Practice Principles”
  • Implemented a whistleblowing and reward system
  • Established a regulatory compliance unit

Climate Goals & Targets

Long-term Goals:
  • Continue to research and develop new products to respond to future trends
  • Implement global logistics management
Medium-term Goals:
  • Actively research and develop new products to maintain a leading position in the optoelectronics component industry
  • Value and improve proprietary technologies and intellectual property rights
Short-term Goals:
  • Develop diversified products and enhance design-manufacturing integration
  • Lower costs and maintain excellent product quality
  • Expand optical application fields and develop new products

Environmental Challenges

  • Impact of COVID-19 pandemic on the global economy
  • Fluctuations in the consumer electronics market
  • Short product life cycle of optoelectronics products
  • Price competition in digital still cameras and camera phones
  • Climate change risks and opportunities (in assessment)
Mitigation Strategies
  • Cautious attitude and focus on core business
  • Strengthening vertical integration and product diversification
  • Continuous development of new products with high-potential markets
  • Intensifying manufacturing and processing abilities
  • Integrating mechanism and electronic functions
  • Implementing TP management to pursue superior quality and reduce costs
  • International division of labor to lower manufacturing costs
  • Risk assessments and management strategies for ESG factors

Supply Chain Management

Responsible Procurement
  • Requires suppliers to sign a “Statement of Prohibition against Manufacturers’ Bribery”
  • Requires suppliers to comply with regulations on environmental protection, occupational safety and health, and labor rights

Climate-Related Risks & Opportunities

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

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001, IATF16949

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:11,553.89 tCO2e/year (2023)
Scope 1 Emissions:176.08 tCO2e/year (2023)
Scope 2 Emissions:9,697.43 tCO2e/year (2023)
Scope 3 Emissions:1,680.38 tCO2e/year (2023)
Water Consumption:97,821.67 m3/year (2023)
Waste Generated:65.81 tons/year (2023)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Completed the 2021 Greenhouse Gas Inventory (GHG) report and obtained independent third-party certification.
  • Invested NT$13,578,000 in energy-saving equipment, resulting in 62,388 kWh electricity savings per year and a 30,882 kg CO2e reduction.
  • Reached the goal of reducing 15.8% manufacturing process water usage annually in 2023.
  • Reached the goal of reducing 12.63% waste amount in 2023, including 6.5 tons of reduction in hazardous waste.

Social Achievements

  • Hired over the legally required number of employees with disabilities (11 people).
  • Hired 4 more aboriginal employees compared to 2022.
  • Provided work opportunities to local residents (Tanzi Dist.) for 158 people.
  • Conducted employee caring interviews for 197 people.
  • Disseminated information about human rights to 4939 employees.
  • Increased non-executive full-time employee salaries by 2% in 2023.
  • Held safety and health seminars and classes, and conducted fire drills and training exercises for 810 people.

Governance Achievements

  • Established the “ESG Steering Committee” and “ESG Committee” in 2021.
  • Established the Audit Committee in 2016 to replace Supervisors.
  • Implemented the “Insider Trading Prevention Management Operation Procedure”.
  • Established “Ethical Corporate Management Best Practice Principles” and “Procedures for Ethical Management and Guideline of Conduct”.

Climate Goals & Targets

Long-term Goals:
  • Continue to research and develop new products to respond to future trends.
  • Implement global logistics management.
Medium-term Goals:
  • Actively research and develop new products to maintain a leading position in the optoelectronics component industry.
  • Value and improve proprietary technologies and intellectual property rights.
Short-term Goals:
  • Develop diversified products and enhance design-manufacturing integration ability.
  • Lower costs and maintain excellent product quality.
  • Expand optical application fields.

Environmental Challenges

  • Short product life cycle of optoelectronics products.
  • Fierce price competition in digital still cameras, camera phones, and related consumer electronics.
  • Climate change risks and opportunities.
  • Potential risks of over-concentration in purchase or sale.
Mitigation Strategies
  • Established Central Research Center to coordinate R&D plans and resources.
  • Actively intensified international cooperation to maximize cost competitiveness.
  • Conducted TCFD risk and opportunity identification meeting to develop response strategies and goals.
  • Maintained close relationships with core suppliers and had at least two suppliers for main raw materials.

Supply Chain Management

Responsible Procurement
  • Requires suppliers to sign a “Statement of Prohibition against Manufacturers’ Bribery”.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001