|Item||Implementation Status||Implementation Status Difference from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons|
|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 set up 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 execute solutions, and track implementation results to ensure that the sustainable development strategy is implemented in daily management.
The Sustainability Committee will report to the Chairman on a regular basis and to the Board of Directors at least once a year on the results of sustainability implementation and future work plans. Proposal content includes (1) identifying sustainability issues that require attention and formulating corresponding action plans; (2) goals and policy revisions of sustainability-related issues; (3) supervising the implementation of sustainable management 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.
|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 major business locations between January 2022 and December 2022. The boundary of risk assessment is primarily the Company, including business locations in Taiwan, China, other parts of Asia, the Americas, and Europe.
The Sustainability Committee conducts analysis in accordance with the materiality principle in the sustainability report, communicates with internal and external stakeholders, reviews international/national research reports and literature, integrates data from various departments, evaluates material ESG issues, and formulates effective identification , assessment, control, and supervision of risk management policies, and the adoption of specific action plans to reduce the impact of related risks.
|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 will formulate an environmentally sustainable development strategy based on the identification of important environmental issues. In response to international trends and customer requirements, the Company's business units have established an environmental management system that has passed ISO14001 certification (validity: 2020/4/23 - 2023/4/22), and continues to promote the Company's environmentally sustainable development. Meanwhile, the Company conducts greenhouse gas inventory in accordance with the GHG Protocol every year to track the carbon reduction effect. Details are available in the Company's Sustainability Report and on the Company's website
|Does the company endeavor to utilize all resources more efficiently and use renewable materials which have low impact on the environment?||v||
The Group systematically manages the energy use of the group by adapting the ISO 50001 energy management system and passing third-party verification (Extension of validity of certificate: 2023/1/12 - 2023/7/12), thereby identifying the risks and opportunities of reducing energy use and improving energy efficiency. The Company continues to promote the implementation of energy-saving technical transformation projects.
In addition, the Company also actively develops new technologies for energy conservation and emission reduction, new products, and new business models to fully explore the potential of energy conservation, and to promote and improve the Company’s transformation and increase revenue, and ultimately, continuously optimizes the Company's energy-saving and carbon-reduction system and achieves the goal of continuous improvement.
The Company signed a green power procurement cooperation memorandum with Forest Wei. The Taiwan factory will purchase about 2.36 million kilowatt-hour (kWh) of green electricity in 2022, and the purchase volume will be increased year by year. It is estimated that by 2030, about 70 million kWh of green electricity will be accumulated, which is equivalent to a reduction of about 35,140 metric tons of carbon dioxide equivalent emissions.
The raw materials used by our company are all in compliance with EU RoHS, REACH and halogen-free specifications. The Company continues to cooperate with international customers, and conducts chemical safety information disclosure of processes used in assembly plants. Furthermore, establish a list of prohibited substances to complete the replacement of green chemicals in customer products. In terms of green manufacturing, the company requires the company to conserve resources, explore the development of waste reduction and reuse technologies, and implement a zero-waste project between the company and suppliers to maximize the economic benefits of recycling.
|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's climate change management body is the Sustainability Committee, chaired by the Chairman. It reviews the Company's climate change strategies and goals, manages climate change risks and opportunities, and reviews the implementation status and future plans every year, and reports to the Board of Directors. 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. The Company officially became a supporter of TCFD in 2021. The Company follows the framework of TCFD recommendations to assess the Company's risks and opportunities from climate change, and conducts a comprehensive assessment every three years and renewal review every year. The Company completed the latest risk assessment in 2022 and identified 3 major risk issues: increased demand for renewable energy and electricity regulatory restrictions, uncertain market information, and increased stakeholder concern or feedback. The Company also identified feasible opportunities and worked out countermeasures. The Company follows the green, smart, and circular economy strategy. In terms of climate change mitigation, the Company continues to develop projects such as green operation, energy management, carbon information disclosure, and green energy fund; in terms of climate change adaptation, the Company strengthens basic measures to improve sustainable operation capabilities and building core competitiveness. For details, please refer to the chapter on Environment of the Company's Sustainability Report.
|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 has been promoting greenhouse gas emissions since 2008, and participated in the Carbon Disclosure Project (CDP) since 2010. The Company conducts inventory of greenhouse gas emission in accordance with the "GHG Protocol"/ISO 14064, and actively promotes ISO 14064 independent third-party verification within the Company (certification date: April 20, 2023).
Greenhouse gas emissions in the past two years
(Unit: tonnes of CO2e)
In order to cope with climate change and promote the sustainable operation of the company, the company plans to continue to increase the use of renewable energy, and hopes to achieve green power use accounting for more than 50% in 2030.
The Company actively implements water resource management planning, identifies water risks, formulates water management strategies and targets, implements various water-saving projects, and promotes water recycling and reuse, in order to achieve conservation of water resources, efficient use of water resources, reduction of wastewater discharge, and impact on the environment. The Company plans to reduce water intensity by 6% compared to 2020 by 2025. In 2022 (Note), the Company took 88,105,165 tons of water.
In order to implement the circular economy strategy, the Company actively promotes the "Zero Waste" project, giving priority to waste recycling at factories. In 2021, the Company established a waste management platform in Shenzhen Longhua Campus, Mainland China, to track waste generation, distribution, and conversion rate, etc. in real time through data-based management and control, combined with various solutions such as reduction, recycling, and harmless waste of factory waste to make continuous improvements to achieve zero waste and build a zero-waste comprehensive ecological park. The Company plans to obtain at least 5 zero waste to landfill gold certification (UL2799) plants by 2025. The waste in 2021 and 2022 (Note) were 1,001,771 tons and 710,464 tons, respectively.
Note: The boundary of data in 2022 is Greater China. Global data are disclosed in the Company's sustainability report.
|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 set employees codes of conduct in accordance with labor laws and related personnel regulations, to protect the legitimate rights and interests of employees. As an official member of RBA, in addition to actively participating in alliance activities and undertaking member-related obligations, the group is also committing to the compliance and implementation of corporate social responsibility with its peers in the electronics industry and various partners. The "Group Corporate Social Responsibility (CSR) Code of Conduct" is formulated on the basis of RBA, which is implemented after being signed by the chairman and the top managers of each business group, and is actively implemented and listed as an annual compulsory course for all new employees.
On-the-job education for employees further promote compliance with the Code.
The Group's Code of Conduct covers eight areas: Ethics, Labor and Human Rights, Health and Safety, Environment, Management Systems, Responsible Mineral Sourcing, Anti-Corruption Policy and Anti-Slavery Policy.
|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 the Article 28 of the Company’s “Articles of Incorporation” adopted by the Board, 5%-7% of the Company profit shall be set aside for employee remuneration. The Company has set performance bonuses, employee compensation and other rewards systems. The Company’s operating profit is distributed to employees in accordance with employee performance, to align employee and Company growth. In addition, the Company has set a code of employee ethics, employee self- discipline, performance evaluation and reward system, leading employees to behavior in line with the Sustainability Policy.|
|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 formulated the safety and health policy and promised to achieve the goal of zero injury, zero occupational disease and zero accident so as to create a best working environment for all employees.
The Company updated Health and Safety Management System in 2019, and have received SGS Certifications ISO45001 (received 2022/11/24, and valid through 2025/11/24), and CNS45001.
The Company regularly hosts health promotion training during training for new recruits. For the 2022 health promotion training, a total of 57 sessions were held this year, totaling 28.5 hours, and a total of 57 sessions of labor health education training, totaling 171 hours.
|Does the company provide its employees with career development and training sessions?||v||The Company’s Career Development unit is tasked with the planning and implementation of the Career Development Program.|
|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, and establishes management mechanisms from raw material procurement to logistics to customers. The Company continues to track product safety information and establish a reporting mechanism to fulfill its commitment to product safety. 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. On health and safety and protection of customer privacy and rights for complaint for customers, the Company complies with relevant regulations and establishes procedures based on international standards. Detailed procedures and codes can be found on the Company's official website.
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 supplier management policies. 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 Supplier Social and Environmental Responsibility Website:
The Company's central procurement and each business unit through the selection of new suppliers, audit counseling, performance evaluation, education and training, and supplier conferences, based on long-term effective cooperation, improve supplier capabilities, strengthen supply chain resilience, and reduce operational risks. The Company's suppliers in 2022 meet the following conditions.
|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 Sustainability Report of the Company has been prepared with reference to the GRI-Standard for sustainability reporting issued by the Global Reporting Initiative (GRI) and the standards issued by the Sustainability Accounting Standards Board (SASB). The aforementioned report was obtained from a third-party verification institution (BSI) in accordance with AA1000 and published on the Company's website.||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:
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.
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.
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.
The company has a supplier management department, providing audit and trainings on corporate social responsibilities to suppliers.
The Company participates in events relating to development of society, charity groups and domestic governments via donations: