Climate Change Data

Environmental Metrics

ESG Focus Areas

• economic performance
• social performance
• environmental performance
• corporate governance
• operational performance
• market image
• air pollution and greenhouse gases
• environmental compliance
• compensation and benefits
• occupational health and safety

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, AA1000

Third-party Assurance: GREAT International Certification Co., Ltd.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Regulatory Compliance
• Risk Management
• Supply Chain Management
• Labor Relations

Environmental Achievements

• Reduced electricity consumption by 61% in the 5th, 6th, and 12th floors of Sanmin Factory through lighting fixture replacement.
• Reduced electricity consumption by 46% in Hua Ya Factory warehouse through lighting control improvements.
• Reduced electricity consumption by 67.8% in Hua Ya Factory maintenance workshop through lighting fixture replacement.
• Achieved 100% recycling rate for 266 tons of waste.

Social Achievements

• Implemented comprehensive measures to protect employee health during the COVID-19 pandemic.
• Organized a blood donation activity, collecting 108 bags of blood.
• Participated in ART TAIPEI 2022 Art Education Day, promoting environmental conservation.
• Collaborated with Yuan Ze University and Tamkang University on industry-academia projects.

Governance Achievements

• Established a Sustainability Development Committee.
• Implemented a Board Performance Evaluation Policy.
• Established "Code of Ethics," "Guidelines for Integrity in Business," and "Practices for Corporate Social Responsibility."
• Completed 60 internal auditing projects with 100% compliance rate.

Climate Goals & Targets

Environmental Challenges

• Customer expectations shifting towards environmentally friendly products.
• Potential impacts of extreme weather and climate change on operations.
• Increased raw material costs due to climate change and regulations.
• Implementation of carbon tax in Taiwan.

Mitigation Strategies

• R&D efforts on reducing life cycle carbon footprint.
• Establishment of emergency response procedures.
• Collaboration with suppliers to establish long-term strategic supply plans.
• Implementation of internal carbon pricing.

Supply Chain Management

Supplier Audits: 95% completion rate for environmental screening of new suppliers.

Responsible Procurement

• Implementation of Green Product Management System (GPMS)
• CSR Corporate Social and Environmental Responsibility Code of Conduct
• Prohibition of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather and climate change

Transition Risks

• Customer behavior change
• Green design
• Carbon tax
• Increased raw material costs

Opportunities

• Development of low-carbon products and services
• Exploring new business opportunities in smart manufacturing and smart grids

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), Task Force on Climate-related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB)

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 13485, TOSHMS

Third-party Assurance: Green International Certification Co., Ltd.

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

NEXCOM's initiatives contribute to these SDGs through its commitment to sustainable development, talent development, innovation, climate change response, and ethical business practices.

Awards & Recognition

• Taiwan Excellence Award (three in-vehicle/railway computers)

Environmental Metrics

ESG Focus Areas

• Governance
• Innovation
• Carbon Reduction and Energy Saving
• Employee Care
• Social Contribution

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a Sustainability Development Committee in August 2022.
• Obtained ISO 27001 information security management system certification in Q1 2023.
• Achieved 100% compliance rate in 59 internal audit tasks in 2023.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in revenue due to client inventory adjustments and foreign exchange losses.
• Risks related to exchange rates, interest rates, capital flow, product marketability, technological obsolescence, cost-effectiveness of technology development, occupational hazards, environmental changes affecting energy costs, increasing waste disposal costs, talent shortages, supplier disruptions, and information security breaches.

Mitigation Strategies

• Natural hedging and foreign currency borrowing to mitigate exchange rate risks.
• Maintaining relationships with multiple banks to ensure sufficient operating capital.
• Understanding market dynamics and maintaining good customer relationships.
• Proactive R&D investment and external alliances to reduce risks.
• Occupational hazard prevention measures and regular environmental monitoring.
• Production process optimization to reduce energy consumption and waste management regulations.
• Salary adjustments based on performance, expanded recruitment, internal training, and establishing offices in talent-rich areas.
• Establishing a robust supplier system and proactive inventory management.
• Implementation of ISO 27001 information security management system and regular security risk assessments.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Waste reduction
• Sustainable supply chain management
• Worker safety
• Emissions reduction

Environmental Achievements

• Development of energy-efficient industrial fieldbus computer (NIFE 210) reducing energy consumption in CNC machines and automation applications.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High energy consumption of CNC machines and automation tools.

Mitigation Strategies

• Development and implementation of energy-efficient solutions like the NIFE 210 industrial fieldbus computer.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• NIFE 210 industrial fieldbus computer

Awards & Recognition

• Not disclosed