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Implementation of the Sustainable Development
Implementation of the Sustainable Development
1. Implementation of the Sustainable Development and the Differences of Practice for Sustainable Development of Listed OTC Companies and Its Reasons
Item | Implementation Status | Implementation Status Difference from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Yes | No | Description | |||||||||||||||||||||||||
Does the company establish a governance structure to achieve sustainable development, and set up a dedicated (part-time) unit to promote sustainable development, which is authorized by the board of directors to handle senior management, and supervised by the board of directors? | v | The Company officially established its Corporate Social Responsibility (CSR) initiative in 2007 and changed its name to the Sustainability Committee in 2022. It is the highest-level sustainability decision-making organization within the Company. The chairman of the board acts as chairman of the committee, combines with senior executives to jointly review the Company's operational strategies and capabilities, and formulate a medium- and long-term sustainable development plan. The "Sustainability Committee" is a cross-departmental communication function that integrates top and bottom lines. The Company has established an ESG team to identify sustainability issues that are critical to company operations and stakeholders' concerns through monthly meetings, formulate strategies and work guidelines, plan and implement solutions, and track the effectiveness of implementation to ensure that the sustainable development strategy is implemented in daily management. The Sustainability Committee will regularly report the sustainability implementation results and future work plans to the Chairman and to the Board of Directors on a quarterly basis. Proposals include (1) identifying sustainability issues that require attention and formulating corresponding action plans; (2) sustainability-related issues (3) Supervising the implementation of sustainable operation matters and evaluating the implementation. The Board of Directors will also evaluate the success of the strategies and the progress of the implementation, and will urge for adjustments when necessary. | No Difference | ||||||||||||||||||||||||
Does the company conduct risk assessments on environmental, social and corporate governance issues related to company operations according to the principle of materiality, and formulate relevant risk management policies or strategies? | v | This disclosure covers the sustainability performance of the main business locations from January 2024 to December 2024. The boundary of risk assessment is mainly based on the Company, including Taiwan, China, other parts of Asia, the Americas, and Europe.
The Sustainable Development Committee based on the Sustainability Report
Reports of materiality are analyzed in principle, communicated with internal and external stakeholders, and by reviewing international/national research reports and literature, integrating data from various departments, assessing material ESG issues, and formulating guidelines for effective identification, assessment, control, and monitoring risk management policies and specific action plans to mitigate the impact of related risks.
| No Difference | ||||||||||||||||||||||||
Environment Issues Does the company establish proper environmental management systems based on the characteristics of their industries? | v | The Company firmly believes that when promoting environmental protection, it must not only comply with relevant laws and regulations, but also need to be in line with international development trends. In 2022, the Company established an environmental sustainable development strategy based on the identified environmental issues. In response to international trends and customer requirements, the Company's business units have established an environmental management system, and acquired ISO14001 (effective date: 2022/09/06 - 2025/09/06 ) certification and will continue to promote the Company's environmentally sustainable development. At the same time, the Company conducts greenhouse gas inventory in accordance with the GHG Protocol every year to track carbon reduction results. Details are available in the Company's Sustainability Report and on the Company's website (https://www.honhai.com/zh-tw/CSR/focus-environment?section=focus-environment-tab1). | No Difference | ||||||||||||||||||||||||
Does the company endeavor to utilize all resources more efficiently and use renewable materials which have low impact on the environment? | v | The Company has adopted the ISO 50001 energy management system and passed third-party verification (certificate expiry date: 2023/1/12 - 2026/1/12 ) to systematically manage the Group's energy consumption and increase risks and opportunities of energy efficiency. The Company has set an annual energy-saving target of 4.2% improvement based on the previous year. In 2024, the actual energy-saving rate in the mainland China was 5.8%. This achievement demonstrates the Company's outstanding results in energy conservation. In order to further improve energy efficiency, the Company continues to vigorously promote the implementation of energy-saving technology transformation projects, while strengthening internal factory energy-saving audits to ensure the effective implementation of various energy-saving measures. In addition,the Company actively invests in research and development, striving to develop new technologies, products, and business models for energy conservation and carbon reduction. It is deeply exploring energy-saving potential to drive transformation and upgrading, enhance quality and increase revenue, and continuously optimize energy efficiency. Carbon reduction system to achieve the goal of continuous improvement. In terms of green energy deployment, the Company signed a memorandum of understanding with CDIB Capital Group to jointly establish Kai Hong Energy Co., Ltd. It aims to guide capital flows to the sustainable green energy industry, provide enterprises with much-needed green electricity, and create relatively stable investment returns for investors. In 2024, the total electricity consumption in Mainland China was 8,504,019,650.17 (kWh), of which the use of renewable energy was 7,248,091,221 kWh, accounting for about 85% (relevant data for other areas will be included in the sustainability report after the collection is completed). The Company strictly controls the use of raw materials to ensure that all raw materials comply with EU RoHS, REACH, halogen-free and other regulatory requirements. The Company continues to deepen the cooperation with international customers, actively discloses the safety information of process chemicals used by the assembly plants, establishes and improves the list of banned substances, successfully completes the replacement of green chemicals in customer products, and practices the concept of green production. In the field of green manufacturing, the Company adheres to the principle of resource conservation and actively explores the development of waste reduction and recycling technologies. We vigorously promote zero waste projects within the Company and among suppliers to maximize the benefits of the circular economy and contribute to the green development of the industry. | |||||||||||||||||||||||||
Does the company assess the potential risks and opportunities of climate change on its present and future operation, and take measures to respond to climate-related issues? | v | The Company attaches great importance to climate change management and has established a Sustainability Committee as the core organization for climate change management, which is chaired by the Chairman. The Sustainability Committee is responsible for overseeing the Company’s climate strategy. It conducts regular annual reviews of the Company’s climate change strategies and targets, comprehensively manages risks and opportunities brought by climate change, closely examines implementation progress, and engages in thorough discussions on future plans. The outcomes are then reported in detail to the Board of Directors to ensure that the Company’s climate actions remain closely aligned with its strategic objectives. Under the Company's ESG team structure, we have set up Team E, which is chaired by the Chief of Environmental Protection. Team E focuses on translating greenhouse gas emission reduction paths and plans into practical actions. By regularly tracking and reviewing implementation progress and results, it effectively promotes the Company's emission reduction goals and ensures that every measure can be effectively implemented and achieve real results. Since 2021, the Company has officially become a staunch supporter of Climate-related Financial Disclosure (TCFD). The Company strictly follows the framework of the TCFD recommendations to conduct a comprehensive and in-depth assessment of the risks and opportunities that climate change brings to the Company. A complete and systematic assessment is conducted every three years and is updated annually to ensure that the Company's understanding of climate risks remains at the cutting edge of the industry and provide an accurate and timely basis for decision-making. In 2023, the Company compiled and completed the first "Net Zero Vision Report" and publicly disclosed it on the Company's official website, demonstrating the Company's transparency and responsibility on the road tp sustainable development. The report clearly identified three major risk items: the challenge of surging renewable energy demand and electricity regulatory restrictions, the potential risk caused by the uncertainty of market information, and the impact of increased attention and feedback from stakeholders. Faced with these risks, the Company also actively identifies feasible development opportunities and formulates targeted countermeasures to turn challenges into opportunities. In terms of climate change mitigation, the Company unswervingly adheres to the green smart and circular economy strategy, and continues to promote the in-depth development of green operations, energy management, carbon information disclosure, green energy funds and other projects, constantly explore new paths for green development, and improve the Company's green competitiveness. In adapting to climate change The Company is focusing on strengthening foundational measures by enhancing its sustainable operational capabilities, thereby building core competitiveness and ensuring steady progress amid a constantly changing climate environment. For more detailed information, please refer to the Environment Section of the Company's Sustainability Report.In 2024, the Company officially became the third enterprise in Taiwan's high-tech hardware equipment industry and the seventh enterprise in Taiwan to obtain SBTi approval for its net zero goal. This achievement is not only a high recognition of the Company's past efforts, but also an important milestone in the Company's sustainable future. It indicates that the Company's firm determination and outstanding practices in addressing climate change have been widely recognized by international authoritative institutions. | |||||||||||||||||||||||||
Does the company conduct assessment on greenhouse gas, water consumption and waste for the last two years, and establish company strategies for energy conservation and carbon reduction, greenhouse gas reduction, water saving and waste management? | v | The Company began to promote greenhouse gas emissions since 2008, and participated in the Carbon Disclosure Project (CDP) in 2010. The Company conducts inventory of greenhouse gas emissions in accordance with the "GHG Protocol" /ISO 14064, and actively promotes ISO 14064 independent third-party verification within the Company. Greenhouse gas emissions in the past two years (Unit: Metric tons of CO2e)
In order to actively respond to the international net zero emissions initiative and demonstrate the Company's responsibility in responding to global climate change, the Company officially joined the CA100+ initiative and solemnly promised that, with 2020 as the base year, greenhouse gas emissions will be reduced by 42% by 2030, and the ambitious goal of net-zero emissions will be achieved by 2050. This commitment demonstrates the Company's determination to pursue a green and low-carbon development path and a positive attitude to contribute to global climate governance.
In order to effectively respond to climate change and promote the Company's sustainable operation, the Company has formulated a renewable energy development plan and continues to increase the proportion of renewable energy use. It is expected that the Company's green electricity usage will account for more than 50% by 2030. By optimizing the energy structure, reducing dependence on traditional fossil energy, further reducing carbon emissions, and helping the Company's green transformation. In terms of water resources management, the Company attaches great importance to the rational use and protection of water resources. Through comprehensive water risk identification, we have formulated scientific water management strategies and goals, actively promoted various water-saving projects, and vigorously promoted the recycling and reuse of water resources. The purpose is to achieve the efficient and economical use of water resources, reduce wastewater discharge, and reduce the negative impact on the ecological environment. According to the Company's plan, by 2025, the water intensity will be reduced by 6% compared to 2020. In 2023, the Company's total water withdrawal (use) reached 85,234,800 tons, and in 2024, the Company's total water withdrawal (use) reached 58,353,664 tons (Only covers the Greater China region. Global data will be disclosed in the sustainability report after the collection is completed). Implementing the circular economy strategy is an important measure for the Company's sustainable development. The Company vigorously promotes the "Zero Waste" project and upholds the principle of giving priority to waste reuse within the factories. In 2021, the Company has established a waste management platform in Longhua Park, Shenzhen, China. With the use of digital management and control methods, key information such as waste generation, flow, and conversion rate can be accurately tracked in real time. Multiple solutions such as reduction, resource utilization, and harmlessness of factory waste are combined to continuously improve waste management. We are committed to achieve the goal of zero waste and create a zero-waste comprehensive ecological park. The Company plans to obtain at least 5 Zero Waste to Landfill Gold Certification (UL2799) plants in 2025. As of 2024, 9 of the Company's industrial parks have obtained the certification. Total amount of waste in 2023 was 584,180 tons and 641,985 tons in 2024 (Only covers the Greater China region. Global data will be disclosed in the sustainability report after the collection is completed). | |||||||||||||||||||||||||
Social Issues Does the company formulate appropriate management policies and procedures according to relevant regulations and the International Bill of Human Rights? | v | The Company has established work rules in accordance with labor laws and personnel regulations to protect the legitimate rights and interests of employees. As a full member of the Responsible Business Alliance (RBA), in addition to actively participating in alliance activities and undertaking member-related obligations, the Group is committed to the compliance and promotion of corporate social responsibility together with peers and partners in the electronics industry. The "Code of Conduct" has been formulated based on the RBA, which is signed by the chairman of the board and the top managers of each business group. It is actively implemented and listed as a required course for all new employees every year. Current employees are continuously reminded that they should comply with the code of conduct requirements. The code of conduct covers eight major aspects: ethics, labor and human rights, health and safety, environment, management system, responsible mineral procurement, anti-corruption policy, and anti-slavery policy.
The Company dutifully abides by international human rights regulations and establishes the Company's "Employee Human Rights Chapter" with reference to the "Universal Declaration of Human Rights". The content includes 12 key requirements such as prohibition of unlawful discrimination. The special chapter on human rights demonstrates the importance and commitment of the Company to human rights. It provides human rights protections in terms of policies for employees partners hired by the Group and suppliers in any form, and implements all-employee training. In practice, we conduct labor audits and self-assessments at key factories around the world through human rights risk assessments. The dedicated unit and responsible person continue to track and audit the deficiencies, and improvement measures and progress; regularly follow up the self-assessed human rights risk factory areas and check the corresponding risk control mechanism. The Company has also established the "Supplier Social and Environmental Responsibility Code of Conduct" to ensure that suppliers and the Company comply with the same human rights principles. | No Difference | ||||||||||||||||||||||||
Does the company formulate and implement reasonable employee benefits measures (including remuneration, vacation and other benefits, etc.), and appropriately reflect operating performance or results in employee compensation? | v | According to Article 28 of the Company's Articles of Incorporation, if there is profit in the year, 5% - 7% of the profit shall be set aside as employee remuneration. The Company has established performance bonus and employee remuneration and other reward systems. Share the performance with colleagues so that the salaries of colleagues can grow together with the Company's operations. In addition, the Company has established a code of business ethics, employee self-discipline, performance appraisal, and reward and punishment systems to guide employees' behaviors in line with sustainable development policies. | |||||||||||||||||||||||||
Does the company provide a healthy and safe working environment and organize training on health and safety for its employees on a regular basis? | v | The Company has established occupational safety and health policies, regulations and plans, and pursued zero injuries, zero occupational diseases, and zero accidents, and was awarded the Excellent Unit and Personnel for Occupational Safety and Health by the Ministry of Labor and New Taipei City.
The Company conducted the occupational safety and health management system conversion in 2019, and obtained ISO45001 (valid from November 24, 2022 to November 24, 2025) and CNS45001 certificates. The Company has established a comprehensive education and training system, and regularly organizes safety, health, and health-related activities to strengthen the safety and health awareness of employees, and accumulate disaster-free working hours in the factory. The Company regularly hosts health promotion training during training for new recruits. In 2023, the Company organized 46 health promotion training courses, totaling 23.5 hours, and 57 labor safety and health training courses, totaling 92 hours.
The number of fire incidents in 2023 was 0. Disaster response drills are held every year to improve personnel emergency response capabilities and strengthen disaster relief knowledge to reduce the frequency and severity of disasters. | |||||||||||||||||||||||||
Does the company provide its employees with career development and training sessions? | v | 1 Establish a multi-level functional training mechanism. The Company designs multi-level training programs according to employees' different career stages to enhance their professional knowledge and management capabilities, which mainly cover: Basic training: The Company provides orientation and basic competency courses for new recruits to ensure that they can quickly adapt to the workplace environment. Professional training: Provide professional skills enhancement training based on business needs, such as financial accounting, information security and other professional fields. Management competency development: Design management capability enhancement courses for mid-level and senior managers, including training on leadership, decision-making ability enhancement, and cross-departmental collaboration training. 2 Training data: The Company adopts a data-driven talent development strategy, formulating clear resource allocation and performance indicators each year based on training needs, including: Total training hours: The Company provided 419,843 hours of internal and external training courses in 2024. 3 Implement transparency and information disclosure mechanism to ensure the effective promotion of training programs and transparency to stakeholders, the Company has established a complete information disclosure mechanism and regularly updates relevant training programs and reports on its website. | |||||||||||||||||||||||||
Does the company comply with relevant regulations and international standards on the health and safety of customers, customer privacy, marketing and labeling of products and services, and formulates relevant policies and procedures to protect consumer rights and handling complaints? | v | The Company actively manages the product value chain. Management mechanisms have been set up from raw material procurement, logistics to customers, and continue to track product safety information and establish a reporting mechanism to implement product safety commitments.
The Company has established strict information systems and policies, including management and technical aspects, to protect the information security requirements of customers, employees, and suppliers, and to protect the privacy and property rights of relevant stakeholders. The Company has established a code of conduct to protect customers' health and well-being health and safety, customer privacy, consumer rights, and right of complaint. Detailed procedures and codes can be found on the Company's official website. https://www.honhai.com/en-tw/CSR/Advocacy-and-Promotion The Stakeholders section has been set up on the Company's website to provide customers with complaint channels and strengthen customer relations. At the same time, the business department communicates with customers on a regular basis to confirm customer satisfaction, and handles customer complaints in the first time to protect customers' rights and interests. | |||||||||||||||||||||||||
Does the company formulated and implement supplier management policy, requiring suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights? | v | The Company has established Code of conduct for social and environmental responsibility. Requiring suppliers to adhere to environmental, occupational health and safety, and labor rights guidelines, and supervises and audits accordingly. For details, please visit Hon Hai's Supplier ESG management platform website: https://sgm.foxconn.com/portal/index The Company's central procurement and various business units have selected new suppliers, auditing and counseling, performance evaluation, education and training, and supplier conferences, etc., on the basis of long-term effective cooperation, improve supplier capabilities, strengthen the resilience of the supply chain, and reduce operational risks. The Company's suppliers in 2024 meet the following conditions.
For more details, please refer to the "Supplier Management" section and "Supplier Responsibility Report" of the Company's Sustainability Report. | |||||||||||||||||||||||||
Does the company compile corporate social responsibility reports or reports that disclose the company's non-financial information based on international CSR compiling standard or guidelines? Is the report accredited from accreditation agency or third-party verification organization? | v | The Company’s sustainability report is prepared in accordance with the Global Reporting Initiative (GRI) Standards and the Sustainability Accounting Standards Board (SASB) guidelines. The report follows the AA1000 assurance standard for third-party verification and is publicly disclosed on the Company’s official website. The certification agency for 2023 and 2024 was Afnor Asia Ltd. | No Difference | ||||||||||||||||||||||||
If the Company makes its own corporate social responsibilities principles according to the Rules of Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies, please state the differences: Not applicable. | |||||||||||||||||||||||||||
Any other important information that helps to understand the conduct of corporate social responsibility: (1) Adopted new processing system to enhance the capacity to recover wastes and sewage. The new system has been installed and put into operation in some areas in the plant. (2) Respecting employees, the Company emphasizes that it does not hire child labor, does not force employees to work overtime. Managers are prohibited to discriminate or harass against employees. All relevant measures are officially announced. (3) The Company has Health and Safety Department, examining the facilities, providing training to employees on industrial safety and health and conduct performance review on a regular basis. (4) The company has a supplier management department, providing audit and trainings on corporate social responsibilities to suppliers. (5) The Company participates in events relating to development of society, charity groups and domestic governments via donations: 1. Donations totaling NT$76,875,000 were made to the Hon Hai Whale Scholarship winners for scholarships and other financial aid. 2. The Hon Hai Education Foundation invested NT$14,474,708 in the Starlight Project. 3. Donated a total of NT$14,284,077 to Hon Hai Technology Award winners for scholarships and technology education promotion. 4. Donations totaling NTD 3,446,660 to private and government agencies. 5. Recruited employees to receive training and participate in AI training camps in 10 rural junior high schools and disadvantaged areas in Taiwan, and lead more than 200 students to experience robotic assembly and AI programming education. | |||||||||||||||||||||||||||
2. Climate-related information
(1)
Implementation of climate-related information| Item | Implementation |
|---|---|
| Describe the monitoring and governance of climate-related risks and opportunities by the Board of Directors and the management. | The Company has established the Sustainability Committee as the climate change management body, chaired by the Chairman. It reviews the Company's climate change strategies and goals, manages climate change risks and opportunities for actions, reviews the implementation status and discusses future plans, and reports to the Board of Directors on a yearly basis. The Board of Directors is briefed at least once a year on climate strategies, action plans, policies, budgets and business operations at board meetings. The Chief Environmental Protection Officer of the Company has set up Team E under the ESG team. The team is responsible for the implementation of greenhouse gas reduction paths and proposals, and regularly tracks and reviews the progress and results. |
| Describe how the identified climate risks and opportunities affect the Company's business, strategy and finance (short, medium, and long-term). | Based on the operating characteristics and industry characteristics of Hon Hai, and with reference to the risks and opportunities in the 'Recommended Climate-related Financial Disclosures', the material value at risk was assessed by considering the possibility and extent of the impact, and with reference to the results of the stakeholders' issues of concern. The major climate-related risks and opportunities of the Group were summarized and consolidated into 3 major risks and 3 major opportunities. |
| Describe the financial impact of extreme climate events and transformation actions. | Based on the TCFD framework, Hon Hai conducts financial impact assessment on the three major risks and opportunities of transformation and entity, sets mitigation and adjustment risks, and makes strategic planning for increasing industry opportunities. The estimated financial impact of climate change-related risks is mainly to achieve 2050 net zero emissions from the carbon reduction and decarbonization costs, including increasing energy conservation and carbon reduction facilities and self-built photovoltaic solar energy facilities, fees for renewable energy certificates, fees for the purchase of carbon rights, and additional fees from the instability of new carbon reduction technologies. |
| Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system. | The Group has established a hierarchical risk management process based on the level of risk issues and unit functions. The overall climate-related risk management processes are improved based on the impact of different management levels and risk issues from the group, business group, legal person, and plant sites. |
| If a scenario analysis is used to assess the resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors, and main financial impacts used shall be described. | Hon Hai has released the Phase 1 TCFD Net Zero Vision Report. Currently, the Company is implementing the Phase 2 report on climate scenario analysis and discussion. The results will be announced on the official website once they are confirmed. |
| If there is a transformation plan in place to manage climate-related risks, specify the content of the plan, and the indicators and targets used to identify and manage physical risks and transformation risks. | The Group has defined two core concepts, 'Cleaner Production' and 'Resource Management', and proposed a corresponding net zero emission reduction management and monitoring mechanism from the perspective of the Group's value chain in line with the three major climate goals. Starting from the core concepts of climate change mitigation, value chain management, promoting green and smart transformation, creating emerging industries, and improving operational resilience, the Group will gradually embrace the road to Net Zero. |
| If internal carbon pricing is used as a planning tool, the basis for setting the price shall be stated. | Hon Hai is currently conducting a pilot project on internal carbon pricing and will announce the implementation results at a later date. |
| If climate-related goals are set, the activities covered, the scope of greenhouse gas emissions, the planning period, and the progress of each year should be explained; if using carbon offsets or renewable energy certificates (RECs) to achieve the goals, it should be explained In exchange for the source and quantity of carbon reduction credits or quantity of Renewable Energy Certificates (RECs). | Foxconn Technology Group actively participates in the global green energy transformation trend and fully promotes the sustainable development strategy of the Company. A green energy plan has been clearly formulated. It is planned that by 2030, the Group's overall green electricity consumption will exceed 50%; and it is further committed that all factories worldwide will use 100% green electricity by 2040. In 2024, the Group officially joined the RE100 initiative and became its member, which demonstrated the Group's firm determination and positive actions in addressing climate change and promoting the popularization of green energy. In order to achieve the above goals, the Group vigorously promotes the self-built solar (photovoltaic) power station project, and at the same time actively plans and implements the green electricity procurement plan of bundled REC system, and increases investment in the field of green energy. In 2024, the Group's green energy share in mainland China reached 85% and achieved remarkable results. Among them, the direct purchase of clean energy reached 14,160,200 kWh, a total of 57,105,200 renewable energy certificates (RECs) were purchased, and the power generation of self-built solar power stations also reached 121.55 million kWh. This series of data fully demonstrates the positive progress and outstanding results of the Group's green energy deployment. |
| Greenhouse gas inventory and assurance status, as well as reduction goals, strategies, and concrete action plans. | Please refer to the following table. |
(2)
GHG inventory and assurance in the last 2 yearsGreenhouse gas inventory information
Describe the greenhouse gas emission volume (metric tons CO2e), intensity (metric tons CO 2 e/NTD million), and data coverage for the most recent two years.
Greenhouse gas emissions in the past two years, with the same boundaries as those described above (unit: tons of CO2e)
| Year | Scope 1 | Scope 2 (based on the market) | Intensity (CO2e mt/NTD million) |
|---|---|---|---|
| 112 | 258,108 | 2,421,127 | 0.432 |
| 113 | 127,936 (Mainland) | 1,073,630 (Mainland) | Due to the incompleteness of the data, it will not be disclosed for the time being. After the subsequent data collection is completed, it will be disclosed in the Sustainability Report. |
Greenhouse gas assertion information
Describe the status of assurance in the last 2 years up to the date of publication of the annual report, including the scope of assurance, institutions of assurance, criteria of assurance, and opinions of assurance.
The Company’s total greenhouse gas emissions for 2023 have been certified by an assurance body in accordance with Assurance Standard No. 3410 “Assurance Engagements on Greenhouse Gas Statements”, with a limited assurance opinion. The global assurance work for the Company’s total greenhouse gas emissions for 2024 is still ongoing, and the results will be disclosed in the sustainability report upon completion.
Greenhouse gas reduction goals, strategies and concrete action plans
Describe the greenhouse gas reduction base year and data, reduction goals, strategies, and concrete action plans and achievement of the reduction goals.
Taking 2020 as the base year, the Company has set a target of 42% reduction in 2030 and net zero for 2050.
Regarding the greenhouse gas emissions of Scope 1 and Scope 2 within the Group's operating boundary, the Company adopts four major means to reduce greenhouse gas emissions: energy saving, direct purchase of green power, green power construction, and investment in the purchase of green power certificates. In order to promote carbon reduction in operations, the Company sets annual energy-saving indicators at the beginning of each year, and adopts incentive policies and information platform sharing to promote energy-saving technology upgrades among business groups and subsidiaries.
The Group continues to promote and implement energy-saving projects such as compressed air leakage management and high-efficiency air conditioning machine room renovation, continues to increase the installed capacity of rooftop and ground-mounted solar power stations through self-construction and acquisitions, and increase the usage and ratio of clean energy. In March of 2024, we established Kai Hung Energy Co., Ltd. with CDIB Capital, to lead the investment in the sustainable green energy industry and provide the much-needed green power for enterprises.
In order to achieve net zero emissions in the value chain, the Company actively conducts diversified carbon reduction guidance and demonstration projects in the supply chain. At the initial stage of the project, the Company had in-depth exchanges with suppliers on carbon reduction planning, conducted carbon emissions assessments on workshop equipment through on-site factory visits and production process surveys, and assisted suppliers in determining carbon reduction paths. In the later stage, the Company established a standardized guidance procedure (SOP) to regularly verify the carbon reduction results, and held experience exchange meetings to promote resource sharing for carbon reduction results. Through systematic analysis of carbon reduction results, the Company has refined carbon reduction solutions with significant results, optimized carbon reduction strategies year by year, and helped suppliers achieve green transformation. It is worth mentioning that the Company issued its first “Supplier Responsibility Report” in 2024, which was a first among Taiwanese companies.
Regarding the greenhouse gas emissions of Scope 1 and Scope 2 within the Group's operating boundary, the Company adopts four major means to reduce greenhouse gas emissions: energy saving, direct purchase of green power, green power construction, and investment in the purchase of green power certificates. In order to promote carbon reduction in operations, the Company sets annual energy-saving indicators at the beginning of each year, and adopts incentive policies and information platform sharing to promote energy-saving technology upgrades among business groups and subsidiaries.
The Group continues to promote and implement energy-saving projects such as compressed air leakage management and high-efficiency air conditioning machine room renovation, continues to increase the installed capacity of rooftop and ground-mounted solar power stations through self-construction and acquisitions, and increase the usage and ratio of clean energy. In March of 2024, we established Kai Hung Energy Co., Ltd. with CDIB Capital, to lead the investment in the sustainable green energy industry and provide the much-needed green power for enterprises.
In order to achieve net zero emissions in the value chain, the Company actively conducts diversified carbon reduction guidance and demonstration projects in the supply chain. At the initial stage of the project, the Company had in-depth exchanges with suppliers on carbon reduction planning, conducted carbon emissions assessments on workshop equipment through on-site factory visits and production process surveys, and assisted suppliers in determining carbon reduction paths. In the later stage, the Company established a standardized guidance procedure (SOP) to regularly verify the carbon reduction results, and held experience exchange meetings to promote resource sharing for carbon reduction results. Through systematic analysis of carbon reduction results, the Company has refined carbon reduction solutions with significant results, optimized carbon reduction strategies year by year, and helped suppliers achieve green transformation. It is worth mentioning that the Company issued its first “Supplier Responsibility Report” in 2024, which was a first among Taiwanese companies.
Unit: Tons CO2e
| Base year | Scope 1 | Scope 2 (market-based) | Reduction rate achieved |
|---|---|---|---|
| 2010 | 277,369 | 5,199,433 | Due to the incompleteness of the data, it will not be disclosed for the time being. After the subsequent data collection is completed, it will be disclosed in the Sustainability Report. |