ESG Strategies and Goals

We have established the "Chipbond Sustainability Policy" and established a risk management team in the ESG Committee to compile the risk assessment results of each risk management unit, formulate improvement plans for projects that may have an impact on operations, and report to the board of directors regularly.

• Completed risk assessments and reported the results to the Board of Directors.

• Completed risk assessments, and the ESG Committee completed the risk management report to the board of directors on October 26, 2023.

• Continue improving the corporate risk management mechanism and assessing the risks and opportunities of the ESG issues to the operations of the company.

There is a corporate governance manager to assist directors in taking office, provide information required for business execution and comply with laws. Strengthen the functions of the board of directors by participating in corporate governance evaluation and board of directors performance evaluation and continuously improving the corporate governance system.

• Independent directors account for over 50% of the board.
• The number of directors who concurrently hold managerial positions should not exceed one-third of the total board seats.
• At least one female director is seated on the board.

• Independent directors account for 50% of the total board seats.
• There are two directors who concurrently hold managerial positions, which is less than one-third of the total board seats.
• One female director is seated on the board.
• Ranked in the top 5% of the 9th Corporate Governance Evaluation for OTC companies; Listed on the "TPEx Corporate Governance Index" Constituents.

• Continue improving the conformity to the corporate governance evaluation indicators and making efforts to maintain the top 5% ranking in the Corporate Governance Evaluation.

Operation through the QC080000 hazardous substances management system ensures that products do not contain hazardous substances and conflict minerals. Require suppliers to sign the "Supplier Code of Conduct Statement" and jointly fulfill corporate social responsibilities through supplier selection, evaluation and auditing.

• Number of abnormal cases in hazardous substance testing for finished products is equal to zero.
• The investigation of conflict minerals in the relevant raw material supply chain is 100% completed.

• Completed testing for 41 products for hazardous substances, and the test results were all in compliance with regulatory requirements.
• Completed investigations on conflict minerals for 17 related raw material suppliers with a 100% completion rate.

• Regularly conduct conflict minerals investigations to ensure that finished products do not contain conflict minerals.

By establishing an Information Security Management System based on ISO 27001, we develop management policies, provide education and training, and raise awareness to ensure the effective operation of our critical information systems. We conduct regular risk assessments to identify potential information security risks and implement continuous improvement measures to mitigate them. This ensures the robust functioning of our important information systems.

• Import Dynamic Sandbox Mechanism.
• Introduction of Security Information and Event Management (SIEM) platform.
• Number of major security incidents = 0

• Import a Dynamic Sandbox Mechanism with 100% coverage.
• Introduced the Security Information and Event Management (SIEM) platform, with a 100% completion rate.

• Getting certified to ISO 27001:2022 transition verification.
• Continuously strengthen employee safety awareness.

Streamline the governance structure and ensure sound operation and development of the Company through the operation of the Board of Directors and various functional committees.

• Maintenance of the Company’s profitability and achievement of the operational goals.

• The consolidated sales revenue was NTD 20.06 billion.
  Basic earnings per share were NTD 5.41.

• Maintenance of the Company’s profitability and achievement of the operational goals.

The company establish a quality management system in accordance with ISO 9001and IATF 16949 standards. Through the operation of the management system, continue improving the product quality and production efficiency to provide premium services and meet the requirements of the customers.

• Accomplishment of the preset service satisfaction indicators by relevant responsible customer service units.

• The overall customer satisfaction reached 8.75 points and maintained at a "satisfactory" level. The relevant responsible units achieved KPI indicators.

• Continue to provide premium services to meet the requirements of the customers.

Identified the potential risks and opportunities brought about by climate change under the TCFD framework and improve the resilience of the Company to cope with climate change through greenhouse gas inventories, energy-saving and carbon-reduction plans, and adaptation schemes.

• Complete ISO 14064-1Greenhouse Gas emissions Inventories third-party verification and declaration.
• Kuang-Fu Plant introduce ISO 50001 energy management system and pass third-party verification.
• Reduce 3,054,856 KWh of electricity compare with the previous year.
• Continuous setup of solar power equipment on the roof.

• Completed 100% ISO 14064-1Greenhouse Gas emissions Inventories third-party verification and declaration.
• Kuang-Fu Plant completed 100% ISO 50001 energy management system verification.
• The 22 key energy-saving programs were estimated to save approximately 3,019,588 KWh of electricity.
• Completed the selection and contract signing of solar equipment construction projects for three plants areas, and was expected to be completed in 2024.

• Replace old energy-consuming equipment with new energy-efficient equipment.
• In 2024, electricity consumption will be reduced by 1% compared with the previous year. (3,430,990 kWh)
• Reduce electricity intensity by 15% up to 2025 compared with the base year. (2015)
• The ISO 50001 management system wii be horizontal development to all plants of the company with 100% coverage.
• Increase the proportion of the renewable energy to 1% up to 2025.
• Conduct green power procurement assessment.

Establish an environmental management system in accordance with ISO 14001 to improve the efficiency of water use and the climate resilience of water resources through integrated utilization of water resources, water conservation in the process, improvement of process water recycling capabilities and contingency mechanisms.

• Improve process water recovery rate.
• Reduce water withdrawal intensity.

• Completed 3 important water saving and process water recycling projects.
• Water withdrawal volume decreased by 12.12% compared with the previous year; water withdrawal intensity decreased by 30.20% compared with the base year.
• The process water recovery rate increased by 2.78% compared with the previous year.

• Achieve 90% recycle rate of waste organic solvent by 2025.

Accroding to the ISO 14001, the company continuously improve the Environmental Management System in accordance. The first priority in waste management is waste reduction in the process,  followed by reuse, and finally treatment or disposal. Carefully select waste removal, treatment and recycling vendors for disposal, and send personnel to conduct audits from time to time to ensure that waste is properly disposed of.

• Improve the recycling and reuse rate of waste solvents.
• Strengthen program waste recycling and reuse.

• Organic solvent recovery and reuse rate reached 89.65%.
• 105.55 metric tons of silicon sludge from the grinding process and 392.46 metric tons of copper sludge were recovered and entrusted to a recycling vendor with case-by-case reuse.

• Achieve 90% recycle rate of waste organic solvent by 2025.

The "Chipbond Human Right Policy" is formulated with reference to international norms and establishes personnel management standards through personnel rules and regulations. Implement gender equality in human rights protection practices, conduct regular human rights risk assessments and establish smooth communication channels to reduce the chances of human rights risks occurring.

• Strengthen communication and promotion of "diversity and inclusion in the workplace" and "employee rights and interests".
• Employee opinions/reports and grievance channels are handled and the case closure rate is 100%.
• The ratio of weighted headcount for posts with physical and mental disabilities to the total headcount ≥1%.

• Completed the formulation and promotion of the "Chipbond Diversity, Equity & Inclusion Policy".
• Completed the construction of "Employee Rights and Q&A Platform".
• Completed 25 employee feedback and complaint mailbox incidents, with a 100% case closure rate.
• Recognized by the Hsinchu City Government as “An outstanding unit for exceeding the company in employment of people with disabilities”.

• Conduct a survey on employees' identification with the company and their work, understand their voices, and further develop countermeasures to enhance employees' identification and sense of belonging to the company.

Through the operation, risk assessment and continuous improvement of the ISO 45001 occupational safety and health management system, we can prevent the occurrence of occupational injuries and diseases and maintain the health and safety of colleagues.

• Continue improving the safety at the factory to avoid injuries.
• Frequency-Severity Indicator (FSI) < 0.07

• ESH Management Committee improved 194 proposals in total.
• Frequency-Severity Indicator (FSI) = 0.04

• Continue improving the occupational health and safety in the factory, so that the Frequency-Severity Indicator (FSI) will be < 0.06