ShunSin Technology Holdings Limited
Climate Impact & Sustainability Data (2021, 2022, 2023-01-01 to 2023-12-31)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Sustainable Development
Climate Goals & Targets
Environmental Challenges
- Semiconductor shortage affecting production
- Port congestion and COVID-19 pandemic causing delays in Vietnam plant construction and production lines
Mitigation Strategies
- Team dedicated efforts to overcome difficulties and improve overall business performance
- Product diversification
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environmental Stewardship
- Social Responsibility
- Corporate Governance
Environmental Achievements
- Exceeded all regulatory requirements for wastewater discharge and recognized as a water-saving enterprise.
- Constructed a 0.797 MW solar photovoltaic power station.
- Reduced energy consumption and carbon emissions compared to 2020 baseline.
Social Achievements
- Invested NT$ 298,109 in internal training initiatives and provided NT$ 189,200 in subsidies for employee education.
- 100% application rate for maternity leave among eligible employees.
- Entry-level employee salaries exceeding local minimum wage.
Governance Achievements
- Successfully conducted anti-corruption assessments for 100% of operational sites with zero corruption-related terminations.
- 100% completion rate for new suppliers signing ESG statements.
- Established a robust tax risk management framework.
Climate Goals & Targets
- Carbon neutrality by 2060.
- Achieve 22.5% reduction in carbon emissions by 2050 (2020 baseline).
- Increase water recycling ratio to over 10% and reduce tap water consumption by over 20% within five years.
- Implement ISO 46001 Water Efficiency Management Systems.
- Pass ISO 14064-1:2018 Greenhouse Gas Inventory standard in 2023.
- Achieve 5.63% carbon reduction in 2023.
- Increase water recycling to 11-15% of total water consumption.
Environmental Challenges
- Supply chain disruptions due to extreme weather events, pandemics, and trade conflicts.
- Volatile global landscape marked by US-China trade war, COVID-19 pandemic, and geopolitical tensions.
- Evolving demands of domestic policies and regulations.
Mitigation Strategies
- Installation of Uninterruptible Power Supplies (UPS), active participation in commercial insurance programs, and establishment of large-capacity water storage facilities.
- Aligning with the "Corporate Governance 3.0 Sustainable Development Road Map" and planning for a dedicated corporate governance executive and Sustainability Development Unit.
- Rigorous commitment to the Responsible Business Alliance (RBA) Code of Conduct, supplier compliance verification through audits, and employee training on social responsibility.
Supply Chain Management
Supplier Audits: 10 onsite audits and 29 written audits in 2022 (100% completion rate)
Responsible Procurement
- Code of Conduct
- Supplier sustainability requirements
- Undertaking of Environmental Protection and Social Responsibility
- Supplier's Undertaking
- Letter of Quality Guarantee
- Statement of Use of Hazardous Substances
- Declaration of No Use of Conflict Minerals
- Statement of Labor Human Rights
- Undertaking of Integrity, Incorruption and Confidentiality
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather (typhoons, floods)
- Changes in rainfall patterns (flooding, drought)
- Annual increase in average temperature
Transition Risks
- Policy and legal risk (energy saving product standards, carbon cutdown costs)
- Market risk (change in market demand)
- Enterprise reputation
Opportunities
- Resource efficiency (paper and waste recycling, water conservation, circular economy)
- Energy source (use of low-carbon energy, renewable energy projects)
- Product and service (low-carbon commodities, climate adaptation solutions)
- Markets (new markets, green products)
Reporting Standards
Frameworks Used: GRI 2021 Sustainability Reporting Standards
Certifications: ISO 45001
Third-party Assurance: AFNOR (Type 1, Moderate Assurance)
UN Sustainable Development Goals
- SDG 8
- SDG 10
- SDG 13
- SDG 16
- SDG 17
- SDG 3
- SDG 4
- SDG 5
- SDG 6
Initiatives aligned with various SDGs as detailed in the report.
Awards & Recognition
- Water-saving enterprise in 2022
Reporting Period: 2023-01-01 to 2023-12-31
Environmental Metrics
ESG Focus Areas
- Environment
- Society
- Corporate Governance
Environmental Achievements
- Reduced energy intensity by 56% in 2023 compared to 2022 while production output increased.
- Reduced carbon emissions by 1,052.56 tonCO2e in 2023.
- 9.19% of water usage in 2023 covered by water reuse project.
- 100% of main raw material suppliers passed ISO 14001 Environmental Management System verification in 2023.
Social Achievements
- Allocated CNY 74,000 to employees in need in 2023.
- Held 30 events in 2023 to improve employees' work-life balance and health.
- Provided an average of 30+ hours of training per trainer and specialist in 2023 with a NTD 208,129 training fund.
- 42.1% female employees and 31% female supervisors at the end of 2023.
- 2023 employee satisfaction survey scored 86.45 points.
Governance Achievements
- Acquired 34 new patents in 2023, totaling 105 active patents.
- Allocated 7% of 2023 total revenue (NTD 386,959,000) to R&D.
- Increased the rate of female directors to 14% in 2023.
- All suppliers signed the REACH Statement with RoHS reports provided.
- All main suppliers of raw materials signed the Vendor Commitment regarding ethical and honest operations.
- No supplier graded as "D" in 2023; 65% graded "A", 35% graded "B".
- Provided anti-corruption training to 100% of board members, 98% of mid-high level management, 99% of general specialists, and 96% of direct production staff in 2023. 100% of suppliers also completed training.
- Board members underwent 63 hours of advanced study in 2023.
Climate Goals & Targets
- Achieve 180 points (Gold Level) in RBA Audit.
- 42% absolute reduction in carbon emissions by 2030 (2020 as baseline).
- Water intensity reduced by 12% by 2025.
- 100% industrial discharge testing system setup by 2025.
- Non-use of conflict minerals by suppliers.
- 90 satisfaction scores as internal management standards.
- 5.8% carbon reduction goal in 2024.
- Supplier OTD to reach 100%.
- 90+ satisfaction scores from key customers.
Environmental Challenges
- Extreme weather events impacting global economy and society.
- Health and wellbeing challenges (e.g., disease prevention).
- Geopolitical uncertainties and economic conflicts impacting operations.
- IC material shortages affecting supplier output and delivery timelines.
Mitigation Strategies
- Active in green manufacturing, strict water management processes, waste recovery and reuse, green energy adoption, and expansion of solar power stations.
- Enhanced measures to protect employees' health and safety (physical health checks, PPE, disinfection, social distancing, flexible work hours).
- Established operations in Vietnam to reduce reliance on a single location and enhance production efficiency.
- Strictly following up on supplier production progress to ensure OTD goals are met.
Supply Chain Management
Supplier Audits: 19 onsite audits, 45 paper audits in 2023
Responsible Procurement
- Code of conduct
- Supplier sustainability requirements
- Environmental risk impact assessments
- Conflict mineral assessments
- REACH and RoHS compliance
- Suppliers' Undertaking to guarantee compliance
Climate-Related Risks & Opportunities
Physical Risks
- Typhoon, flood, changes in rainfall patterns, annual increase in average temperature
Transition Risks
- Policy and legal risks (energy saving product standards, carbon reduction costs, penalties)
- Market risks (change in market demand)
- Reputation risks
Opportunities
- Resource efficiency (reducing expenditure on consumables, energy consumption, water costs)
- Energy source (use of low-carbon energy, self-production of renewable energy)
- Product service (development of low-carbon commodities and services)
- Market (development of new markets)
Reporting Standards
Frameworks Used: GRI: 2021, SASB ® Standards, TCFD
Certifications: ISO 45001, ISO 14064-1:2018, ISO 50001:2018, ISO 14001
Third-party Assurance: AFNOR Asia (Type 1, Moderate Assurance)
UN Sustainable Development Goals
- SDG 4
- SDG 5
- SDG 6
- SDG 8
- SDG 10
- SDG 13
- SDG 17
Initiatives align with various UN Sustainable Development Goals, including decent work, gender equality, clean water and sanitation, economic growth, reduced inequalities, climate action, and partnerships for the goals.
Sustainable Products & Innovation
- LiDAR for e-vehicles
- AI data switches in data centers
- 5G base stations
- CPO optical modules
Awards & Recognition
- Top ten manufacturing leaders in Zhongshan Torch High-tech Zone in 2023
- Top 10 corporate taxpayers in the first half of 2023 in Torch High-tech Zone, Zhongshan
- Top Quality Collaboration Award
- Strategic Supplier and Partner Award
- Technical Support Award