| Relevant Material Issue |
Description of Risk |
Mitigation Measures |
Risk Level |
Frequency |
- Climate Strategy and Energy Management
|
Governments tightening cap-and-trade systems or raising GHG emission fees (such as carbon border adjustment mechanisms, carbon taxes, and carbon fees) could result in fines or higher costs if companies fail to respond in time. |
Wistron has conducted a carbon risk assessment and begun applying internal carbon pricing to manage emissions. The Company is also planning a climate fund to invest in energy-saving and decarbonization projects in support of net-zero goals. |
High |
5 |
- Sustainable Supply Chain
- Risk and Crisis Management
|
Failure to promptly address geopolitical impacts on the Company or its business partners could result in operational or supply chain disruption. |
Wistron regularly reviews geopolitical issues at its and its business partners' operating sites, develops comprehensive business continuity management mechanisms, expands diversified production locations, and strengthens automated manufacturing capabilities. |
High |
3 |
- Information Security and Privacy
|
Without a zero trust framework, Wistron would be unable to effectively assess the maturity of its zero trust cybersecurity practices. |
1. Establish IT/OT/Cloud information security management standards and mechanisms
2. Implement a range of information security controls in accordance with these standards to strengthen endpoint, host, and network security |
High |
3 |
- Climate Strategy and Energy Management
- Business and Human Rights
|
Stakeholders are paying closer attention to GHG reduction efforts that fall short of expectations, as well as to the effectiveness of corporate human rights management. Company’s performance in these areas may affect stakeholder confidence, as well as its reputation and access to funding. |
In line with the expectations of regulators and domestic and international sustainability ratings, Wistron has established sustainability-related policies across all areas of operations and actively implements them in day-to-day operation. |
High |
1 |
| Climate Strategy and Energy Management |
Insufficient scenario analysis for extreme climate events, changes in external regulations, and other related developments may expose us to significant losses should such events occur. |
1. We have established a risk management framework that includes defined procedures, a dedicated management structure, and regular risk assessment and adaptation processes
2. Wistron publishes a regular Climate and Nature Report, identifying physical and transition risks and opportunities, and developing corresponding action plans for significant risks and opportunities |
High |
1 |
- Circular Economy
- Air Pollution and Waste
|
Improper waste disposal, recycling, or scrapping at Wistron sites. |
1. Engage certified professional waste processors for proper handling
2. Declare waste in compliance with related laws and conduct regular audits
3. Require waste transport vehicles to be equipped with GPS tracking systems |
Medium |
4 |
- Talent Attraction and Retention
|
Rapid expansion in production capacity demand requires workforce mobilization in a short time, raising labor costs. |
1. Expand recruitment channels: staffing agencies, campuses, government resources, and white-collar foreign professionals
2. Organize overseas recruitment, selecting qualified workers who meet requirements and onboarding them in phases according to demand
3. Coordinate workforce across sites to meet demand through mutual support |
Medium |
4 |
- Talent Attraction and Retention
- Business and Human Rights
|
Insufficient monitoring and training may hinder efforts to foster a diverse and inclusive workplace culture, increasing the risk of discrimination or harassment. |
1. Continuously improve management processes in response to regulatory changes
2. Announce the diversity, equity, and inclusion workplace policy and offer related courses to help employees understand its importance
3. Establish confidential grievance channels and assign dedicated personnel to handle and track cases
4. Establish internal communication mechanisms such as employee satisfaction surveys and exit interviews to gather information early and address potential issues
5. Publicly disclose Wistron's diversity and inclusion commitments in the report to reduce potential internal and external conflicts |
Medium |
4 |
- Product R&D and Innovation
|
Inadequate resources (workforce, time, equipment, capital) and improper processes for product development. |
Based on the 2026 forecast, assess workforce and equipment through the Rolling 3-Month (R3) mechanism. |
Medium |
3 |
- Information Security and Privacy
|
Suppliers' employees lack cybersecurity awareness, including sending internal files through personal emails or clicking on suspicious emails in their corporate mailbox. |
1. Create management systems and training to build a legal-compliance culture
2. Use CSR audits to verify information security processes and risk assessments
3. Implement data classification and protection policies (Confidential Information Protection Measures) |
Medium |
3 |
- Talent Cultivation and Development
|
Training and development programs offered by the Company are not aligned with organizational goals. |
1. Define management competencies and offer corresponding training courses
2. Continuously refine onboarding and compliance training courses
3. Offer training in industry technology, digital transformation, and ESG in response to evolving trends
4. Develop training roadmaps for each business group (BG) and job category based on needs
5. Continue to develop more self-development courses and resources
6. Provide cross-cultural skills, DEI, and language training |
Medium |
3 |
- Information Security and Privacy
|
Employees lack awareness of privacy and data protection laws and may fail to consider privacy and personal data protection responsibilities when sending or handling confidential documents, leading to major personal data leakage incidents. |
1. Establish and publish privacy policies
2. Company-wide awareness campaigns to ensure employees understand and follow privacy regulations
3. Offer training courses to enhance employee knowledge of privacy rights
4. Set up whistleblowing channels (phone/email)
5. Assign access rights by role in the personnel data management system and regularly destroy confidential data |
Medium |
3 |
- Sustainable Supply Chain
- Risk and Crisis Management
- Business and Human Rights
|
Suppliers may be unable to comply with ESG-related requirements due to factors such as COVID-19-related impacts on working hours, labor issues in India, and human rights concerns in Xinjiang. |
1. Include ESG review into supplier assessments
2. Regularly conduct supplier SAQ reviews
3. Develop dynamic supplier management system |
Medium |
2 |
- Business and Human Rights
|
Failure to fully consider personnel and labor rights issues involving third parties, including partnerships, joint ventures, and other business relationships. |
Ensure full consideration of personnel and labor rights issues involving third parties. |
Medium |
2 |
- Business and Human Rights
- Corporate Governance and Ethical Management
- Risk and Crisis Management
|
Company fails to effectively assess, monitor, and update ESG-related investment strategies, and ends up investing in countries or companies with human rights concerns. |
Project management teams conduct risk control procedures both before and after investment. |
Medium |
2 |
- Risk and Crisis Management
- Climate Strategy and Energy Management
- Air Pollution and Waste Water Resource Management
|
Company fails to effectively assess, monitor, and update ESG-related investment strategies, and ends up investing in projects with negative environmental impacts. |
Project management teams conduct risk control procedures both before and after investment. |
Medium |
2 |
- Sustainable Supply Chain
- Climate Strategy and Energy Management
|
Suppliers fail to implement a comprehensive decarbonization plan For example, a supplier may continue to use outdated equipment for operational reasons, resulting in significant GHG emissions. |
1. Inventory supplier's carbon emissions
2. Review supplier's decarbonization plans
3. Set emission reduction targets for suppliers |
Medium |
2 |
- Occupational Health and Safety
- Corporate Governance and Ethical Management
|
Violations of environmental, health, and safety laws and regulations. |
1. Regular regulatory audits
2. Develop occupational safety, health, and environmental management systems based on ISO 45001 and ISO 14001 |
Medium |
2 |
- Climate Strategy and Energy Management
|
Unnecessary energy-intensive equipment (such as air compressors and pumps) generates GHG emissions. |
1. Continue to improve energy-saving retrofits at sites, including replacing water-cooled PKG units with VRV systems in warehouse and office areas, and recovering waste heat from air compressors
2. Enhance energy management capabilities and identify major sources of carbon emissions based on ISO 50001 and ISO 14064-1 implementation |
Medium |
2 |
- Corporate Governance and Ethical Management
|
Systems, processes, and mechanisms for investigating ethical and compliance violations are not sufficiently developed. |
Establish management, training, monitoring, grievance, and response mechanisms for the Company's Code of Conduct. |
Medium |
2 |
- Talent Attraction and Retention
|
Failure to accurately track business growth and departmental workforce needs leads to delays in workforce budgeting and recruitment schedules Recruitment processes also fail to effectively attract and screen candidates with critical skills, leaving important positions vacant for extended periods. This increases the workload on existing employees and may lead to turnover. |
1. Strengthen workforce planning and alignment mechanisms b y conducting regular workforce reviews and futur e staffing needs assessments with e ach department to ensure accurate workforce planning
2. Refine recruitment strategy and pr ocesses: establish diverse recruitment channels and a t alent pool f or critical positions, and replace manual t asks with digit al tools to improve recruitment efficiency |
Medium |
2 |
- Occupational Health and Safety
|
Employee health conditions may affect the Company's productivity. |
1. Arrange annual employee health check-ups
2. Track and follow up with employees identified with health concerns |
Medium |
2 |
- Product Development and Innovation
- Customer Relations
|
Some business lines operate under an ODM model, and certain innovative technologies may not gain customer acceptance. Over time, this may dampen the R&D and innovation momentum of business units and slow the development of new products and services. |
1. Establish new business or forward-looking units to evaluate the adoption of new technologies and offer new products and services
2. Convert innovative technologies into intellectual property (IP) |
Medium |
2 |
