Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product safety and quality
• Economic performance
• Customer service management
• Climate strategy
• Remuneration and benefits
• Energy and greenhouse gas management
• Talent development and cultivation

Environmental Achievements

• Reduced electricity consumption by 3% in 2023 (better than the 1% target)
• Developed 100% recyclable and decomposable packaging and reduced its size
• Adopted green building methods for newly constructed factories

Social Achievements

• Donated NT$5 million to Li Zhi High School to build the "Inspirational Dream Academy"
• DEPO Education Foundation provided scholarships totaling NT$102,314,000
• Established the Employee Welfare Committee for various employee welfare activities
• Built the employee residence, "DEPO Residence", offered to employees at a price below the market price
• Introduced ISO 45001 to improve occupational safety and health

Governance Achievements

• Established the "Sustainable Development Committee" to achieve a win-win situation for economic and sustainable development
• All directors completed required continuing education hours in 2023
• Communicated anti-corruption policies and procedures to all employees in 2023

Climate Goals & Targets

Environmental Challenges

• Changes in interest rates and exchange rates
• Supply chain disruptions due to external factors (natural disasters, war)
• Malfunctioning production machinery
• Cyber attacks and trade secret protection
• Losses from disasters (fires, typhoons, floods, earthquakes, and infectious diseases)

Mitigation Strategies

• Monitors market interest rate trends and establishes good relationships with banks
• Uses derivative financial instruments to hedge positions
• Establishes safety inventory of parts and finished products
• Promotes the localization of raw materials
• Finds alternative suppliers
• Establishes key parts inventory
• Enters equipment maintenance contracts
• Regular inspection and replacement of equipment
• Established a pandemic prevention organization
• Established response standards and procedures for disasters and conducts simulation drills

Supply Chain Management

Supplier Audits: 7 OEM suppliers audited at Lukang Plant; 25 at Xinying Plant (17 exempt)

Responsible Procurement

• Supplier selection criteria include cost, manufacturing quality, supply stability, and long-term collaboration
• Regular supplier assessments and follow-up audits
• Quality review meetings for underperforming suppliers
• Emphasis on local suppliers to reduce carbon footprint

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters causing supply chain disruptions
• Unusual rainfall events leading to flooding
• Average temperature rise increasing operating expenses

Transition Risks

• Carbon fee collection
• Renewable energy regulations
• Net zero emissions requirements

Opportunities

• R&D and innovation of low-carbon automotive lighting products
• Enhanced energy efficiency
• Enhanced reputation

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations, SASB preparation standards

Certifications: ISO 14001:2015, ISO 45001, ISO 14064-1

Third-party Assurance: Deloitte Taiwan (limited assurance)

Sustainable Products & Innovation

• LED automotive lights (energy-efficient)

Awards & Recognition

• 2023 Special Contribution Award for the 300th Anniversary of Changhua County Establishment
• 32nd Taiwan Excellence Award (four consecutive years)
• Outstanding Vendors for Extra Recruitment of Disabled Persons - Excellence Award