Material Topics and Management Approach-Wistron ESG

Material Topics and Management Approach

Wistron conducts a materiality analysis annually. The assessment conducted is based on the principle of double materiality, the analysis results are incorporated into the company's risk management process (Enterprise risk management, ERM) to be considered. After the material topics are identified, we according to the reporting requirements of the GRI Standards, relevant information on major topics, data and management policies, and communication results with stakeholders are collected. Major analysis results are reported to the board of directors and the information is approved for disclosure. Materiality assessment process and analysis results verified by a third-party assurance provider.

Matrix of Topics Impact Assessment

The Degree of Impact Rankings in Topics

In assessing the positive impact, we consider that each issue is just in the stage of meeting the requirements of the regulations, the management is superior to the regulations, the influence of the enterprise is exerted, the market opportunities are created, and so on. These are used to evaluate the positive impact of the issue on Wistron, further continue to exert corporate influence, and create higher value.

In evaluating negative impacts, we consider whether each issue has not occurred or has no risk of illegality, whether there is potential loss or risk of illegality, whether minor losses or violations of laws have occurred, whether major losses or illegal events have occurred, etc. These are used to assess the negative impact of the issue on Wistron, and then formulate a response plan in advance to reduce the impact of potential risks.

Evaluation Results

The four dimensions of ESGI are sorted separately, and according to the priority of the issues, the top 50% of the issues sorted from each aspect are taken as material topics. In addition, the company's sustainable strategy and focus area were considered to finally identify 17 topics as the major toptics of Wistron in 2022.

Environmental Protection

Social Inclusion

Corporate Governance

Innovation Value

Material Topics	Importance to Wistron	Position of Impact in the Value Chain
		Within the organization		Upstream			Downstream
		Wistron	Subsidiaries	Parts	Materials	Equipment	Customers
Environmental Policy and Management System	Wistron is dedicated to reducing the environmental impacts created during operations. We prevent potential environmental risks from occurring through complete policies, management procedures, and verification mechanisms	●	●	●	●	●	●
Climate Change Management	In response to the global challenges brought by climate change, Wistron has established the goal of low carbon transformations, and actively manages climate related risks and opportunities to strengthen operation resilience	●	●	●	●	●	●
Greenhouse Gas Emissions and Energy	Wistron complies with international standards to establish our carbon reduction goals. We actively introduce energy saving and carbon reducing measures to minimize our overall carbon footprint and improve our operational competitiveness	●	●	●	●	●	●

Material Topics	Importance to Wistron	Position of Impact in the Value Chain
		Within the organization		Upstream			Downstream
		Wistron	Subsidiaries	Parts	Materials	Equipment	Customers
Employee Care and Benefits	We are committed to promoting the physical and mental health of employees through a variety of health management activities to achieve work-life balance and improve employee performance	●	●
Talent Attraction and Retention	A talent pool with excellent potential is the most important strategic capital of a company. Wistron created a world class workplace through diverse measures, so that our employees can be proud to work in Wistron	●	●
Occupational Safety and Health	Employee health and workplace safety are the foundations for corporate sustainable developments. Wistron complies with international standards to build a safe work environment for employees, ensuring highly efficient operational performance	●	●
Human Resources Structure	Wistron recruits diverse talents from all over the world and actively promotes gender equality. We also employ local talents to take up supervisory positions to implement localized management of talents	●	●
Talent Cultivation and Career Development	In order to help the career development of employees, Wistron provides diversified learning channels and training systems. We actively improve our competitiveness to face the market challenges	●	●				●
Human Rights, Diversity and Inclusion	A diverse and tolerant culture can create positive impacts on the organization. By upholding the core value of a people-oriented philosophy, Wistron actively shows respect for the human rights of employees and a diversified workplace in the overall value chain	●	●				●

Material Topics	Importance to Wistron	Position of Impact in the Value Chain
		Within the organization		Upstream			Downstream
		Wistron	Subsidiaries	Parts	Materials	Equipment	Customers
Information Security	In order to identify information security risks, education and training related to information technology management policies are implemented to improve overall IT security capabilities and strengthen the organization's resilience against IT security incidents and threats	●	●	●	●		●
Customer Relations	The source of the Company's core competitiveness is the close and sustainable partnerships we have established with our customers. Wistron continues to deepen customer trust through our corporate sustainable management and social responsibility management system	●	●				●
Sustainable Supply Chain	Wistron's procurement influence is used to help suppliers improve the five dimensions of labor, health and safety, environment, ethics and management	●	●	●	●	●	●
Vision and Sustainable Strategies	Only with a grand vision and strategy can we create a bright future. Through the stipulation of sustainable strategies and vision, Wistron has created a clear long-term development plan	●	●	●	●	●	●

Material Topics	Importance to Wistron	Position of Impact in the Value Chain
		Within the organization		Upstream			Downstream
		Wistron	Subsidiaries	Parts	Materials	Equipment	Customers
Green Product	In the product design stage, it is considered that no hazardous raw materials are used, product efficiency is improved, and it is easy to disassemble or recycle, etc. to reduce the impact of products on the environment	●	●	●	●		●
Product Development and Innovation	By leading sustainability with innovation, Wistron actively introduces sustainable thinking during the design process to reduce the environmental impact of products, creating a better life through technology	●	●	●			●
Circular Economy	The recycling green service from Cradle to Cradle is provided, environmentally friendly materials are provided, and the use of plastics is reduced, leading to the realization of the concept of industrial recycling	●	●	●	●		●
Product Development and Innovation	By leading sustainability with innovation, Wistron actively introduces sustainable thinking during the design process to reduce the environmental impact of products, creating a better life through technology	●	●	●

Material Topics and Management Approach

Material topics in 2022

Dimension

Management issues and management strategies

Environmental policy and management system

Environment

Climate Change and Energy Management

Improve energy efficiency
Improve renewable energy consumption

Water Resource Management

Implementation of water resource management and day-to-day water conservation
Implementation of water recycling and wastewater management

Hazardous Substance Management

Hazardous Substance Free (HSF)

Waste Management

Continuous implementation of waste classification and waste reduction
Enhancement of waste recycling and reuse

Product Accountability

Improve environmental benefits of products

Climate change management

Environment

Climate Change and Energy Management

Improve energy efficiency
Improve renewable energy consumption

Energy consumption and greenhouse gas management

Environment

Climate Change and Energy Management

Improve energy efficiency
Improve renewable energy consumption

Employee Care and Benefits

Social

Talent Attraction and Retention

Create a quality work environment and increase employee retention

Talent Attraction and Retention

Social

Talent Attraction and Retention

Create a quality work environment and increase employee retention

Occupational Safety and Health

Social

Occupational Safety and Health

Value employees' health and safety and commit to providing a safe work environment

Human Resources Structure

Social

Talent Attraction and Retention

Create a quality work environment and increase employee retention

Talent Cultivation and Career Development

Social

Human Capital Development

Promote corporate digital transformation and create organizational competitive advantages

Human Rights, Diversity and Inclusion

Social

Human Rights

Implement the company's human rights policy
Satisfy legal compliance

Information Security

Innovation

Governance

Information Security

Establish an updated information security system and mechanism to ensure information security for the company and customers

Customer Relations

Innovation

Governance

Customer Relations

Increase customer satisfaction

Sustainable Supply Chain

Governance

Supplier Sustainability Management

Supplier Risk Management
Optimize regional supply chain
Signature of major statements
Greenhouse gas reduction and water source inventory
Suppliers with high energy usage obtaining GHG external verification
Annual supplier conferences
High energy usage suppliers obtaining
energy management system external
verification

Vision and Sustainable Strategies

Environment

Social

Governance

Innovation

Climate Change and Energy Management

Improve energy efficiency
Improve renewable energy consumption

Water Resource Management

Implementation of water resource management and day-to-day water conservation
Implementation of water recycling and wastewater management

Hazardous Substance Management

Hazardous Substance Free (HSF)

Waste Management

Continuous implementation of waste classification and waste reduction
Enhancement of waste recycling and reuse

Product Accountability

Improve environmental benefits of products

Human Rights

Implement the company's human rights policy
Satisfy legal compliance

Occupational Safety and Health

Value employees' health and safety and commit to providing a safe work environment

Talent Attraction and Retention

Create a quality work environment and increase employee retention

Human Capital Development

Promote corporate digital transformation and create organizational competitive advantages

Social Engagement and Care

Environment and humanity / social care
Enhance diverse collaboration on technology

Corporate Governance

Improve performance in global sustainability assessment

Ethical Management

Implement employee education and training, and strengthen the Code of Conduct and the corporate culture of ethical management

Risk Management/ Internal Control

Regularly identify the risk appetite for all levels of the Company

Legal Compliance/ Privacy

Legal compliance mechanism is established to review changes in local and international regulations related
to operations to ensure compliance with laws and regulations

Supplier Sustainability Management

Supplier Risk Management
Optimize regional supply chain
Signature of major statements
Greenhouse gas reduction and water source inventory
Suppliers with high energy usage obtaining GHG external verification
Annual supplier conferences
High energy usage suppliers obtaining
energy management system external
verification

Customer Relations

Increase customer satisfaction

Innovation Management

Strategically maintain patent portfolio
Expand technology fields and country coverages, enhance patent quality and increase overall patent value
Revitalize patent assets, e.g., transactions, licensing, or monetization
Expand new businesses

Information Security

Establish an updated information security system and mechanism to ensure information security for the company and customers

Green Product

Innovation

Innovation Management

Strategically maintain patent portfolio
Expand technology fields and country coverages, enhance patent quality and increase overall patent value
Revitalize patent assets, e.g., transactions, licensing, or monetization
Expand new businesses

Product Development and Innovation

Innovation

Innovation Management

Strategically maintain patent portfolio
Expand technology fields and country coverages, enhance patent quality and increase overall patent value
Revitalize patent assets, e.g., transactions, licensing, or monetization
Expand new businesses

Circular Economy

Innovation

Innovation Management

Strategically maintain patent portfolio
Expand technology fields and country coverages, enhance patent quality and increase overall patent value
Revitalize patent assets, e.g., transactions, licensing, or monetization
Expand new businesses

Digital Transformations

Social

Innovation

Human Capital Development

Promote corporate digital transformation and create organizational competitive advantages

Innovation Management

Strategically maintain patent portfolio
Expand technology fields and country coverages, enhance patent quality and increase overall patent value
Revitalize patent assets, e.g., transactions, licensing, or monetization
Expand new businesses

Information Security

Establish an updated information security system and mechanism to ensure information security for the company and customers

Material Topics and Management Approach

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