Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy conservation
• Carbon reduction
• ESG
• Human rights
• Workplace diversity
• Gender equality
• Supply chain sustainability

Environmental Achievements

• Introduced ISO 50001 Energy Management System in Tongluo Factory since 2018
• Introduced hazardous substance process management system (IECQ QC080000)
• Successfully passed ISO14001 certification
• Obtained third-party audit certification for greenhouse gas reduction
• Reduced total waste discharge from 1771.54 metric tons in 2020 to 1658.37 metric tons in 2021
• Obtained ISO 27001 information security management certification in 2022

Social Achievements

• Implemented human rights protection-related training for 100% of new associates and conducted two online trainings for all current employees in 2022
• Full member of the Responsible Business Alliance (RBA)
• Conducted complete due diligence in accordance with RBA specifications
• Entrusted a third-party organization to implement the Verification Audit Process (VAP) of the RBA for the Suzhou Wujiang Plant in 2022
• Advocates for a diverse management and employee mix
• Provides various employee welfare measures (insurance, education grants, etc.)
• Provides regular safety and health training
• Established effective career development training plans
• Average training hours of general employees are about 41 hours, and the average training hours of management staff are about 27 hours

Governance Achievements

• Established corporate governance best-practice principles
• Established Audit and Remuneration Committees
• Added one more independent director in 2021 to strengthen the independence of the Board
• Implemented annual evaluations of the effectiveness of the board and functional committees
• Obtained ISO 27001 information security management certification in 2022
• Revised corporate governance practices to prohibit directors from trading stocks during a closed period

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainty due to the Russia-Ukraine war, China's 'zero-COVID' policy, and inflation
• Decreased global demand
• Price competition from China
• Rising wages and labor shortage
• Less barriers to entry in the packaging industry
• Low gross profits on some mature products due to severe competition

Mitigation Strategies

• Focus on invisible light and automotive products
• Develop mid-to-high class optocouplers and sensor products
• Focus on exterior lighting (high-end headlight designs, etc.)
• Introduce high-brightness instrument lights, etc. for interior lighting
• Expand production capacity and strengthen competitiveness of Mini LED products
• Actively seek new opportunities and partners
• Optimize internal management processes
• International cooperation to reduce manufacturing costs and expand production capacity
• Increase the portion of OEM orders
• Develop new products and increase product diversification
• Improve quality and develop new products, new markets, and new applications

Supply Chain Management

Responsible Procurement

• Requires all raw material suppliers’ products to comply with relevant requirements
• Established a code of conduct for suppliers, including labor rights, health and safety, environment, ethics and management systems

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 9001, TS16949, ISO 14001, ISO 45001, OHSAS18001, TOSHMS, QC080000, SA8000, ISO 50001, ISO 27001

Third-party Assurance: TUV

Sustainable Products & Innovation

• Energy-saving LED intelligent lighting system products
• UVC sterilization module
• Mini LED backlight modules

Awards & Recognition

• 2021 HR Asia Awards
• 15th 2021 Asia-Pacific Enterprise Awards; APEA “Corporate Excellence Award”