| Material Topics |
Potential Risks |
Risk Level |
Risk Reduction and Response |
| Climate Strategy and Energy |
- High energy consumption equipment
- Insufficient renewable energy
- Drop in rating
|
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- Improve energy-saving technology and implement international management standards ISO 50001 and ISO 14064-1.
- Review the current use of renewable energy and work with third-party companies for purchase.
- Establish an environmental management team and conduct environmental management meetings regularly.
|
| Water Resource Management |
Drought |
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Implement day-to-day water conservation practices and set medium and long-term water management targets, conduct simulations for water shortage scenarios, and collaborate with local water supply companies. |
| Air Pollution and Waste |
Failure to comply with waste management regulations |
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Identify environmental regulations and implement ESH management policies. |
| Diversity, Equity, and Inclusion |
Failure to provide a work environment of diversity, equity, and inclusion. Occurrences of discrimination or harassment |
● |
Adjust management mechanism, implement DEI policies, conduct anti-harassment /DEI training to raise awareness, and establish a grievance platform. |
| Talent Attraction and Retention |
- Violation of local labor law
- Overtime hours exceed the limit prescribed by labor law
- Lack of human resource planning
- Incorrect amount of contribution to the pension fund reserve
- Lack of benchmarking on salary levels against market practices and competitors
- Performance and compensation scheme are only partially linked
|
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- Establish regulatory compliance mechanism, including compliance framework, management guidelines, self-reviews, monitoring, and educational training.
- Supervisors can use APP to track employee work hours. The system sends supervisors email notifications in case of irregular work hours.
- Monitor manpower status with the manpower allocation dashboard. Track the unfilled rate of vacancies on a quarterly basis.
- Tally and review at the end of March every year.
- Review salary data of market and competitors.
- Make recommendations to supervisors regarding annual pay raise and variable compensation approval based on performance results.
|
| Talent Cultivation and Development |
Lack of a comprehensive program for the continual enhancement of employee competitiveness |
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Offer training courses tailored for management functions and continuously optimize new employee training programs. Provide current and relevant training on topics such as industry technology, digital transformation, and ESG. Design a training roadmap for each professional category and expand resources for self-development courses. |
| Occupational Health and Safety |
- Major emergency response procedures not effectively implemented
- Failure to comply with environmental, health and safety regulations
- Emerging epidemic diseases spread rapidly
- Frequent changes of ESH ISO45001 manager
|
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- Conduct emergency response related training, establish emergency management procedures, review by third-party external audit institutions.
- Periodically conduct regulatory inventory checks and develop occupational safety, health, and environmental policies and management systems in accordance with international standards, namely ISO 45001 and ISO 14001.
|
Business and Human Rights |
- Failure to adjust employee employment procedures in response to regulatory changes
- Inadequate human resources due diligence
|
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- Raise awareness on internal policies and relevant regulations, with auditors periodically conducting regulatory compliance reviews.
- Complete a comprehensive human rights due diligence management cycle annually, and establish consistent cultural and behavioral standards across the group to effectively manage and reduce human rights risks.
- Incorporate supplier evaluation into CSR requirements, conduct supplier SAQ periodically, and establish a supplier status check mechanism.
|
| Public Welfare and Charity |
- Social investment not linked to ESG policies
- Charity events lack systematic organization
|
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Implement a system for compiling information so that offices and factories worldwide may regularly upload community development investment plans and implementation results. Compiled information will then be reported in the annual ESG report. |
| Corporate Governance |
- Geopolitics
- Resignation of independent directors
- Low attendance rate among directors
- Lack of regard for ESG, resulting in market share loss and damaged image
- Relocation of factory sites requiring personnel changes and resulting in employee grievances
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- Diversify manufacturing site locations across the globe and enhance the localization rate of the supply chain.
- Ensure smooth communication between board members and senior executives, and stay abreast of board members opinions.
- The board and its functional committees undertake regular performance evaluations, ensuring that board meeting dates are scheduled appropriately.
- Corporate sustainability and CSR policies have been adopted and incorporated into day-to-day operations.
- Personnel adjustment processes comply with or exceed the standards required by law. Establish communication mechanism between the company, investors and customers.
|
| Risk and Crisis Management |
- Failure to adequately disclose material topics of concern for stakeholders as required by regulations
- Matters disclosed in statutory reports lack accuracy, timeliness or completeness
|
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- Stay abreast of trends in sustainable development, identify material topics of concern to stakeholders annually, and disclose them in accordance with regulations or international standards.
- Monitor changes in regulations or guidelines, strengthen personnel training, and make timely corrections.
|
| Customer Relations |
- Unable to meet customer requirements due to production site relocation
- Customer perceives a lack of professionalism in the point of contact
|
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- Verify progress with customer weekly, communicate with manager of the customer side periodically, and identify the cause in case of customer complaint and actively make improvements.
- Technical team assists business team to review and improve operating procedures for services.
|
| Sustainable Supply Chain |
- Supplier fails to cooperate and comply with CSR regulations
- Supplier fails to adopt carbon reduction plans
- Raw material shortages of supplier
|
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- Incorporate supplier evaluation into ESG requirements, conduct supplier SAQ periodically, and establish a supplier status check mechanism.
- Review carbon emissions of suppliers, assist suppliers in setting carbon reduction targets, and coach suppliers in implementing carbon reduction practices.
- Regularly review raw materials stock level, and implement raw materials allocation system.
|
| Information Security |
- Lack of information security awareness in supplier’s employees
- Lack of privacy and safety regulation awareness in employees
- Company information leakage
- Customer product information leakage
|
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- Provide training to employees of suppliers, check information security management related procedures and risk identification through ESG, and devise confidential information protection measures.
- Establish a regulatory compliance management mechanism, strengthen internal regulations and relevant laws, enhance privacy feedback and reporting channels, raise awareness and conduct educational training.
- Require employees to comply with NDA terms between company and customers, manage sensitive information with information systems, conduct training drills for social networks, and prohibit employees from using USB flash drives.
- Review and improve the company’s current confidential document management mechanism.
|
| Product Development and Innovation |
Due to the ODM model of customers, advanced technologies cannot be effectively applied, delaying the development of new products or services |
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Regularly evaluate the synergy created by new technologies to ensure the effectiveness of introducing new technologies, establish new businesses or forward-looking units to introduce new technologies, and transform innovative technology into intellectual property (IP). |
| Circular Economy |
Organization lacks relevant policies and appropriate methods to manage waste and closed-circuit production |
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Define organizational responsibility and sustainable development policies, and consolidate organizational resources and strategies for the collaborative implementation of policies. |
| Green Products |
- Poor product life cycle management
- Products do not comply with international environmental regulations and customer’s hazardous substance regulations
|
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- Establish a product development management mechanism to monitor, report, and improve product development status/progress at any time.
- Re-examine regulations and customer standards regularly to revise internal regulations.
- Work with benchmark customers regularly to design product/technology development roadmap and product specifications.
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