Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Corporate Social Responsibility
• Business Integrity

Environmental Achievements

• Incurred a total environmental protection expenditure of NTD 22,710,000 (excluding regular maintenance and green product R&D).
• 100% of products sold to Europe conformed to RoHS standards.

Social Achievements

• Continued funding for disadvantaged children.
• Promotion of “Digital Center Plan at Countryside,” “Future Reading” activities.
• Continued to receive CSR honors from Taiwan Institute for Sustainable Energy (TAISE).
• Ranked 36th by CSR Asia Summit during the 2014 "Channel News Asia Sustainability Ranking."

Governance Achievements

• Corporate governance principles were approved by the Board of Directors on December 23, 2014, and disclosed on its official website and MOPS.
• Completed its 2014 corporate governance self-assessment, ranked among the top 5%.

Climate Goals & Targets

Environmental Challenges

• Dispute involving the Company's and subsidiaries' subscription to privately placed securities of Chunghwa Picture Tubes Ltd. (CPT) resulting in a NTD4.7 billion impairment loss.
• Intensified competition in the IT industry.

Mitigation Strategies

• Engaged legal representative to file a claim to Taipei District Court to revoke arbitration decisions.
• Assembled new Product Innovation Team, Technology Innovation Team, and Design Innovation Team to improve technical capabilities and plan for future products.

Supply Chain Management

Responsible Procurement

• EICC (Electronics Industry Supply Chain Code of Conduct)

Climate-Related Risks & Opportunities

Physical Risks

• supply disruption, shortage of resources, extreme weather

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: SGS

Awards & Recognition

• 11 awards during the iF Product Design Award in 2014
• Bronze award by Taiwan Institute for Sustainable Energy during its "Taiwan Corporate Sustainability Report Award"

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Social Welfare

Environmental Achievements

• Included in the Climate Disclosure Leadership Index (CDLI) for the first time.
• Promotion of green and halogen-free products.
• First-time completion of inspections and verifications of emissions produced by staff business flights of GHG Protocol Scope 3.

Social Achievements

• Ranked 16th in CommonWealth Magazine’s “CSR Corporate Citizen Awards” for large corporations.
• Engagement in the promotion of the rural children digital learning program.
• Provided NT$ 91.34 million in maternity allowances and bonuses.

Governance Achievements

• Established the Auditing Committee in 2015.
• Received top 5% ranking in the “First-Term Corporate Governance Evaluation” by the Taiwan Stock Exchange Corporation (TWSE).

Climate Goals & Targets

Environmental Challenges

• Weaker demands of the overall market and the global recession affected computer product shipments.
• Global market demands for notebook and tablet in 2016 will be down year-over-year, and the annual growth of the smartphone demand will be reduced.

Mitigation Strategies

• Continued development of state-of-the-art innovative and quality products in cooperation with clients.
• Vigorous expansion of new businesses (Server, Auto Electronics, Smart Home, IoT Vertical Solution, Smart Medical and Healthcare, Smart Wearable Devices).
• Development of customized and competitive products according to the demands in each field.
• Establishment of a new service-oriented business model with sources of revenue.

Supply Chain Management

Responsible Procurement

• EICC ® (Electronics Industry Citizenship Coalition)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, OHSAS 18001, IECQ QC 080000

Third-party Assurance: SGS

Sustainable Products & Innovation

• Green and halogen-free products

Awards & Recognition

• Top 5% TWSE-listed Companies award in the first round of “Cooperate Governance Evaluation”,
• Ranked as 16th in CSR Corporate Citizenship by CommonWealth magazine
• Bronze Award by Taiwan Institute for Sustainable Energy

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate Social Responsibility
• Environmental Protection

Environmental Achievements

• Compal products are 100% compliant with EU RoHS Directives.
• Implementation of ISO 14001 Environmental Management System since April 1997.
• Participation in UNFCCC’s 2050 pathways platform initiative in 2016.

Social Achievements

• Provided NT$113.25 million in maternity allowances and bonuses by the end of 2016.
• Organized 1,668 training sessions (both internal and external) delivering 104,062 hours of training in 2016.
• Established an Employee Benefits Committee and a Life Committee to promote worker welfare.

Governance Achievements

• Received the award for top 20% ranking in the Corporate Governance Evaluation by the Taiwan Stock Exchange Corporation (TWSE) in 2016.
• Consecutively selected as a Stock Exchange Corporate Governance Index constituent stock for many years.
• Established a “Remuneration Committee” since 2011.

Climate Goals & Targets

Environmental Challenges

• Growth of the hardware device markets stagnated; demands even went into recession.
• Demand declines of the notebook and tablet market, and the smartphone market growth stagnation.

Mitigation Strategies

• Actively adopted systematic management and full implementation from R&D to production, improving operational efficiency and cost management.
• Investment in innovation and new business started to pay off at the customers.
• Full implementation of risk control and efficiency improvement in Smart Device business to achieve better profits.

Supply Chain Management

Responsible Procurement

• EICC® (Electronics Industry Citizenship Coalition)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, OHSAS 18001, IECQ QC 080000

Third-party Assurance: SGS

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Top 20% in TWSE Corporate Governance Evaluation
• 26th in CommonWealth Magazine CSR Corporate Citizen Awards
• 10 awards from German iF product designs in 2016

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Supply Chain Management
• Environmental Protection
• Employee Relations
• Social Participation

Environmental Achievements

• Reduced greenhouse gas emissions by 5.71% per unit revenue (compared to 2014 baseline).
• Kunshan Plant 3, Pingzhen Plant, and Chengdu Plant obtained ISO 50001 certification.
• Nanjing plant and Kunshan plant 3 obtained UL2799 waste zero-landfill platinum certification.
• Produced 131 halogen-free products.
• 88.24% of NB (V7.1), 100% of the server (V3.0), and six LCDs (V8.0) obtained Energy Star certification.
• 5 models of LCD monitor passed CECP certification, and 3 models passed TCO8.0 certification.

Social Achievements

• Introduced Employee Assistance Program (EAP), counseling 52 cases.
• Provided NT$ 66,000 maternity subsidy per newborn, supporting 254 babies.
• Donated over NT$ 3 million to charities through employee donations.
• Organized 9 volunteer service activities with 167 participants.
• 424 employees donated 641 units of blood.
• Participated in various educational initiatives, including donating tablets and organizing winter camps.

Governance Achievements

• Ranked in the top 6-20% of publicly-listed companies in Taiwan for Corporate Governance Evaluation for 5 consecutive years.
• Listed in the FTSE4Good TIP Taiwan ESG index for two consecutive years and in the FTSE4Good index for four consecutive years.
• Compal CSR report in 2019 was certified by SGS Taiwan Ltd. using AA1000 and GRI Standards core options and won the Platinum Medal of 2019 Taiwan Corporate Sustainability Report Award.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to US-China trade disputes and global economic changes.
• Climate change risks (extreme weather, water scarcity).
• Maintaining high ethical standards throughout the supply chain.

Mitigation Strategies

• Investment plan back to Taiwan and expansion in Vietnam.
• Implementation of Business Continuity Planning (BCP) in all plants.
• Strengthening CSR audits and management of Tier 1 suppliers.
• Development of supplier CSR management platform.
• Active participation in CDP and TCFD framework.

Supply Chain Management

Supplier Audits: 24 suppliers audited in 2019.

Responsible Procurement

• RBA Code of Conduct
• Conflict Minerals Policy
• Supplier CSR management platform

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Water scarcity

Transition Risks

• Stringent regulations
• Shifting market demands

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards (Core option), AccountAbility 1000 Assurance Standards (AA1000 AS) Type II

Certifications: ISO 14001:2015, ISO 14064-1:2006, ISO 45001:2018, OHSAS 18001, ISO 50001, ISO 27001:2013

Third-party Assurance: SGS Taiwan Ltd.

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)

Compal's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Halogen-free products
• Energy Star certified products
• Products with recycled plastic content

Awards & Recognition

• Platinum award of TCSA Taiwan Corporate Sustainability Awards
• Platinum Medal of 2019 Taiwan Corporate Sustainability Report Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance
• Supply Chain Responsibility
• Employee Well-being

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1 & 2)
• Increased renewable energy use to 42.6% of total electricity consumption
• Achieved Platinum Award in 2020 Taiwan Corporate Sustainability Report Award

Social Achievements

• Launched various employee well-being initiatives (EAP, health programs, etc.)
• Donated TWD 100 million to Tzu Chi Foundation for vaccine purchase
• Donated TWD 2 million to HCI Foundation for social care

Governance Achievements

• Ranked in the top 21%-35% of TWSE-listed companies in the 8th round of Corporate Governance Evaluation
• Established a Sustainability Committee
• Implemented robust ethical corporate management policies and procedures

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to component shortages and global logistics bottlenecks
• Insufficient workforce
• Climate-related risks (extreme weather, resource scarcity)
• Talent gap in strategic planning, professional skills, and management

Mitigation Strategies

• Strengthened supply chain information system and strategic partnerships
• Implemented real-time production and precise inventory management
• Developed alternative sourcing strategies
• Invested in human resource development and talent cultivation
• Implemented ISO 14001 and ISO 45001 certifications
• Introduced energy management system (ISO 50001)

Supply Chain Management

Supplier Audits: 35 on-site audits in China in 2021

Responsible Procurement

• RBA Code of Conduct
• Compal Environmental Management Standard for Parts and Materials
• Conflict mineral survey (CMRT)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (rainstorms, droughts, typhoons)
• Flooding
• Changes in rainfall patterns

Transition Risks

• Stricter environmental regulations
• Increased cost of renewable energy
• Increased cost of recycled materials

Opportunities

• Increased customer demand for sustainable products
• Cost savings from energy efficiency improvements
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Framework

Certifications: ISO 14001, ISO 45001, ISO 50001 (in some plants)

Third-party Assurance: SGS

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 4 (Quality Education)

Compal's initiatives contribute to these SDGs through renewable energy use, sustainable product design, waste reduction, climate action, and educational support programs.

Sustainable Products & Innovation

• Green products with recycled materials, energy efficiency, and ease of disassembly/recycling

Awards & Recognition

• Platinum Medal of 2020 Taiwan Corporate Sustainability Report Award
• FTSE4Good Index constituent
• FTSE4Good TIP Taiwan ESG Index constituent
• Various iF Design Awards

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Supply Chain Management
• Environmental Protection
• Employee Relations
• Social Participation
• Climate Change Mitigation and Adaptation
• Water Resource Management
• Energy Management
• Waste Management
• Talent recruitment and retention
• Talent incubation, education and training
• Workplace health and safety
• Labor practice and human rights
• Community involvement and social welfare
• Sustainable supply chains
• Business integrity and anti-corruption
• Privacy and information security
• Green Products
• Risk Management

Environmental Achievements

• Reduced greenhouse gas emissions by 80,762,012.682 kg CO2e
• Used 141,613,208 kWh of green electricity, accounting for 37.4% of the Group's electricity consumption
• Kunshan plants 1 and 2 obtained UL2799 zero waste landfill platinum certification
• Reduced auxiliary material amount by 5.14%
• 7% of products in voluntary compliance with Ecolabel
• 5% recovered material usage in each commercial notebook project

Social Achievements

• Launched Employee Assistance Program (EAP), counseling 119 cases
• Provided TWD 66,000 maternity subsidy for each newborn baby, with 186 Compal babies born in 2022
• 2,321 employees participated in various public welfare activities, donations exceeding NT$ 5.9 million
• Donated 79 sets of "Apache Wireless Handheld Ultrasonic System" to a medical institution on an offshore island
• Participated in various public welfare activities, with total social welfare investment exceeding NTD$ 40 million

Governance Achievements

• Awarded the 8th Corporate Governance Evaluation top 21-35% in Public traded company group
• Selected into the FTSE4GOOD Index for seventh consecutive years
• Ranked Gold Award in the Technology R&D of 2022 Happiness Enterprise online voting
• Compal Sustainability report in 2022 was certified by SGS Taiwan Ltd.

Climate Goals & Targets

Environmental Challenges

• Supply chain shortages due to the Russo-Ukrainian War and the COVID-19 pandemic
• Risk of transmission of infectious diseases
• Risks from expansion of overseas plants
• Fluctuations in the capital market
• Concentration of suppliers or sales
• Climate risks and opportunities
• Change in consumer requirements
• Change in market demand
• Water scarcity

Mitigation Strategies

• Just-in-time production and lean inventory management
• Strengthening of strategic partnerships with suppliers
• Quarantine policy focusing on five areas: office control, access control, overseas travel/return control, course/activity control, and restaurant control
• Epidemic prevention response plans at Taiwan and overseas plants
• Emphasis on risk over profitability when assessing the establishment of new plants overseas
• Establishment of a management team that is international in its outlook and risk aware
• Introduction of energy management system and duplication of management model at all plants
• Increase the proportion of renewable energy usage
• Water-saving equipment upgrades at plants

Supply Chain Management

Supplier Audits: 100% completion rate for supplier questionnaire on conflict minerals

Responsible Procurement

• Sustainable supply Chains Management program
• Supplier Code of Conduct
• RBA VAP v7.0 compliance
• Conflict minerals policy
• Hazardous substance management

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall and flooding
• Global sea level rise

Transition Risks

• Increased costs from renewable energy use
• Increased costs from alternative recycled materials
• Increased costs from raising energy efficiency standards

Opportunities

• Introduction of smart production process
• Increased market share by supplying low-carbon products
• Assisting suppliers with low-carbon transformation

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 50001, UL2799

Third-party Assurance: SGS Taiwan Ltd.

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)
• SDG 15 (Life On Land)

Compal's initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

• Eco-friendly products with green materials, energy efficiency, and ease of disassembly/recycling
• Halogen-free products
• Products with recycled materials

Awards & Recognition

• Platinum Medal of Taiwan Corporate Sustainability Report Award
• Taiwan Top 100 Sustainability Award
• Gold Award in the Technology R&D of 2022 Happiness Enterprise online voting
• Happy Enterprise gold award for two consecutive years