Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Supply Chain Management
• Green Products
• Environmental Protection
• Happy Workplace
• Social Participation

Environmental Achievements

• Reduced total energy consumption by 18.56% compared to 2012 in CNC China Production Center.
• Reduced carbon emissions by 19.344 KgCO2e (5%) in Speedport Smart 3 products compared to previous generation.
• Achieved 75.79% waste recovery rate in 2019.
• Introduced 100% recycled plastics into PCR plastic parts since 2015, saving about 100 tons of new plastics annually.
• Two products passed TÜV Green Mark certification.

Social Achievements

• Achieved Silver Medal Award of EcoVadis Global Corporate Social Responsibility (CSR) Rating.
• Won Quality Supplier Award from British Telecom and Japanese Buffalo Telecom manufacturer.
• Provided childbirth incentive subsidy of NT$66,000 for each child, supporting 30 newborns.
• Introduced new employee assistance programs and health promotional plans.
• CNC China production center won the Responsible Business Alliance (RBA) audit and silver medal.

Governance Achievements

• Implemented Code of ethics and anti-corruption policies.
• Conducted internal and external education and training on integrity management for 3 trainees (15 hours total).
• No penalties received from authorities for violation of business integrity or anti-corruption law in 2019.

Climate Goals & Targets

Environmental Challenges

• Grim situation and huge changes in the Netcom industry in 2019.
• Multiple levels of risk impacts including Sino-US trade war, component supply chain disruptions, and inter-industry price wars.
• Uncertainty of market and economic trade.

Mitigation Strategies

• Gradually expanded the scale of the Vietnamese manufacturing center and actively built a local supply chain.
• Increased production capacity to diversify risks of overseas production bases.
• Technical collaboration with key chipset vendors and front-end suppliers to lead new technology trends.
• Upgrading key technology, strengthening supply chain management flexibility, building cross-country manufacturing capacity, and improving cost competitiveness.

Supply Chain Management

Supplier Audits: 14 on-site audits and consultations (CNC China), 27 CSR audits (document reviews and on-site audits)

Responsible Procurement

• Supplier Evaluation Form
• CSR Declaration
• Supplier Code of Conduct
• Green parts list and material test reports collection
• Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core option and AA1000 Assurance Standard type 1, moderate level

Certifications: ISO 9001:2015, TL 9000:2016, ISO 14001:2015, ISO 14006:2011, OHSAS 18001:2007/TOSHMS:2011, ISO 22301:2012, ISO 27001:2013/ISO 27005:2011, SA8000

Third-party Assurance: AFNOR Asia, Ltd.

Sustainable Products & Innovation

• Speedport Smart 3 (reduced carbon emissions)
• Halogen-free products

Awards & Recognition

• Silver Medal Award of EcoVadis
• Quality Supplier Award from British Telecom and Japanese Buffalo Telecom

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Employee Care
• Sustainable Procurement
• Social Participation

Environmental Achievements

• Obtained BS 8001:2017 Circular Economy business model maturity optimizing level
• Won the 3rd National Enterprise Environmental Protection Award (Bronze Award)
• Taiwan Headquarters and China Production Center Obtained ISO 14064 Greenhouse Gas Emission Confirmation
• Reduced carbon emission by about 14 Kg CO2e per Set Top Box project (23% reduction)

Social Achievements

• EcoVadis Global Corporate Social Responsibility (CSR) Gold Rating
• Arcadyan Headquarters won the Chunghwa Telecom (CHT) Sustainable Partner Gold Award
• AVC Vietnam Production Center was awarded the A grade of JAC (Joint Audit Co-operation) International Telecommunications Operators Association audit evaluation in 2021
• CNC China Production Center was awarded the B level of the JAC (Joint Audit Co-operation) International Telecommunications Operators Association audit evaluation in 2021
• AVC Vietnam Production Center was awarded the Silver Level of Audit and Assessment by RBA Responsible Business Alliance in 2021
• Swisscom Sustainable Development Program (SDP) Best Practice Award
• JAC (Joint Audit Co-operation) CSR Supply Chain Management Best Practice Award
• First labor rights awareness training for all employees (2,291 participants)

Governance Achievements

• Corporate Governance Evaluation ranking 21-35%
• Established a sound corporate governance structure, including the remuneration committee, independent directors, audit committees, etc.

Climate Goals & Targets

Environmental Challenges

• Dual pressure of the global epidemic and international trade tensions
• Risks from supply chain disruptions due to the pandemic and port congestion
• Low-carbon transformation challenges
• Accelerated speed of 3C product introduction, shortening product life cycle
• Climate change risks (extreme weather, resource shortages)

Mitigation Strategies

• Expanding the production base in Vietnam
• Strengthening the adaptability of supply chain management
• Rethinking environmental strategies and changing design thinking
• Winning BS 8001 Circular Economy best practice certification
• Planning to expand the scope of GHG Scope 3 inventory and implement ISO 50001 energy management system
• Planning to sign the Science-Based Carbon Reduction Target Initiative
• Formulating continuous management policies and response plans for various shocks
• Introducing ISO 27001 Information Security Management System and ISO 27005 Information Risk Management System
• Implementing ISO 22301 Business Continuity Management System

Supply Chain Management

Supplier Audits: 15 on-site audits, document review for others

Responsible Procurement

• RBA Responsible Business Alliance code of conduct
• Sustainable Development Platform (SDP)
• Joint Audit Co-operation (JAC)
• Supplier Corporate Social Responsibility Commitment
• Prohibition of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Resource shortages

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Green circular economy business opportunities
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 14064, ISO 27001, ISO 27005, ISO 14006, BS 8001, TL 9000, SA8000

Third-party Assurance: AFNOR Asia (AA1000 Type I Moderate Assurance Level)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green products with low energy consumption, easy disassembly, and recycled materials

Awards & Recognition

• 3rd National Enterprise Environmental Protection Award (Bronze)
• Chunghwa Telecom (CHT) Sustainable Partner Gold Award
• EcoVadis Gold Rating
• Swisscom Sustainable Development Program (SDP) Best Practice Award
• JAC Outstanding Achievement Practice Award