E INK HOLDINGS INC. 2019 C ORPORA TE SOCIAL RESPONSIBILIT Y REPOR T No. 3, Lixing 1St Road, Hsinchu Science Park, Hsinchu

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E INK HOLDINGS INC. 2019 C ORPORA TE SOCIAL RESPONSIBILIT Y REPOR T No. 3, Lixing 1St Road, Hsinchu Science Park, Hsinchu E INK HOLDINGS INC. 2019 CORPORATE SOCIAL RESPONSIBILITY REPORT RESPONSIBILITY SOCIAL 2019 CORPORATE HOLDINGS INC. E INK No. 3, Lixing 1st Road, Hsinchu Science Park, Hsinchu City, Taiwan 300 Tel: 886 3 5643200 www.eink.com This report is published with FSC-certified recycled paper and recycled ink with water-based varnish finishing. Let’s Love Earth Together. Editing Principles This is the corporate social responsibility (CSR) report published by E Ink Holdings, Inc. (E Ink). Currently, it is published in Traditional Chinese and English. In addition to a paper version, this report is available for download from the CSR section of E Ink's corporate website. The boundary of disclosure covers our Hsinchu Plant and Linkou Plant in Taiwan, our Yangzhou Plant in mainland China and our plant in the USA as they constitute maJor points of our operations. However, some data are not available from all the plants, so we only disclose the available data, and indicate the source plants. In order to enrich the contents of this report, information about our South Korea subsidiary has also been included herein. With this CSR report, we hope to disclose our efforts to pursue sustainable development and fulfill corporate social responsibilities for the public to understand more and better about E Ink and its products. We also hope that the public can give us suggestions, so that we can maintain our sustainable development and develop toward a world-class enterprise. All amounts mentioned in this report are calculated with the New Taiwan Dollar (NT$). Amounts expressed in other currencies will be remarked separately. Reporting Period This report discloses the information regarding our CSR management approaches, material topics, responses, actions, and performance for the 2019 fiscal year (January 1, 2019 to December 31, 2019). For readers to better understand relevant information, some contents trace back to 2015. Reporting Cycle E Ink publishes its CSR report on an annual basis. The Traditional Chinese version of the previous issue (CSR Report 2018) was published in June 2019. The English version was published in October 2019. The Traditional Chinese version of the current issue (CSR Report 2019) was published in June 2020. The English version will be published in October 2020. The Traditional Chinese version of the next issue (CSR Report 2020) will be published in June 2021. The English version will be published in October 2021. Reference Guidelines E Ink applies the reporting framework in the Global Reporting Initiative (GRI) Sustainability Report Guidelines and adopts the Core disclosure principle. Process of information compilation for the report Relevant information featured in this report has been gathered by responsible departments and reviewed by responsible supervisors before submission to E Ink CSR Committee for relevant compilation, editing, and internal audit. The completed report is then submitted to the Chairman for final review and approval before its publication. Report Assurance Financial information disclosed herein are consistent with E Ink's consolidated financial report for 2019 and its limited assurance of compliance with the GRI Core disclosure principle has been conducted by Deloitte Taiwan regarding the Assurance Standard 1 (AS 01) "Assurance Engagement of Non-Historical Financial Information Audits or Reviews" (establish with respect to ISAE 3000 Revised). The Statement of Assurance of issued by the CPA is shown in the appendix. Contact E Ink Corporate Report Website Download Link Should you have any questions regarding this report, please contact the following window: E Ink CSR Committee Tel: (03) 5643200 Email:[email protected] 1 Chapter 1 Chapter 5 Proactive Communication and Practices Happy Workplace Growth 1-1 Responding to COVID-19 14 5-1 Team overview 80 1-2 Identification of Stakeholders 18 5-2 Building A Positive, Beautiful and 82 Happy Workplace 1-3 Identification and management of 18 material topics 5-3 Multiple development and growth for 93 employees 1-4 CSR Visions and Strategic 23 Management 5-4 Maintaining a Safe and Healthy Work 98 Environment Chapter 2 Chapter 6 Forward-Looking Navigation Strategy Care Towards an e-Future 2-1 E Ink Chronicle 26 6-1 Social Inclusion 108 2-2 Global deployment 27 6-2 Mobile Care Hand by Hand 109 2-3 Business ethics and integrity and 29 sustainable governance 2-4 Strategy focus and growth 35 Content Chapter 3 Appendix Innovative Smart Experience Report Profile 01 Cross Reference with GRI Standards 118 Reporting Indicators for Sustainability 3-1 User-centered brand-new experience 42 Contents 02 Report 3-2 Technical and innovation capacity 50 Cross Reference with Rules Governing 121 Letter from the Chairman and CEO 04 3-3 Quality persistence 54 the Preparation and Filing of Corporate 3-4 Customer Relationship Management 60 Social Responsibility Reports by TPEx Sustainable Development Column (1) 06 (CRM) Listed Companies E Ink to Achieve ColorfulSustainable Development Environmental information 122 Sustainable Development Column (2) 08 E Ink's Boundary-less Carefor Society Social Information 124 Chapter 4 E Ink Glory 10 Report Assurance Statement 126 Sustainable Green Co-Prosperity Summary of Sustainable Development Performance in 2019 12 4-1 Environmental protection 62 4-2 Address to climate change 64 4-3 Resource recycling management 71 4-4 Building a sustainable supply chain 76 2 | Contents | | Contents | 3 Here at E Ink, we perceive our employees to be the Company's most valuable assets and we endeavor to create the best working Contents environment, wages, and benefits for all our employees around the world. And as such, we have formulated specific reward and bonus Contents mechanisms that provide incentives in proportion to employees' contribution to the Company. According to the Market Observation Post System managed by TWSE, among all listed businesses involved in the photovoltaic industry in 2019, the average employee wage for E Ink ranked 4th at NT$ 1.186 million, which is significantly higher than the average salary of NT$ 806,000 offered by other companies in the same industry and the NT$ 818,000 offered by other listed companies in the photovoltaic industry. Involvement in expanded applications for renewable energies and integrating the eco- friendly values of E Ink for the promotion of sustainable development Chapter 1 Chapter 1 E Ink Holdings Inc. has declared 2019 to be the very first year in a "new era of color electronic ink" by leading the technology of electronic With regards to our efforts in environmental sustainability, starting from 2017, the Company has ventured into the domain of purchasing ink from black and white to color applications. With our full-color E Ink GalleryTM and the latest E Ink KaleidoTM launched in 2019, E Ink renewable energy certificates (T-Recs). by 2019, we have purchased a total of more than 1,500 T-Recs, thereby becoming the number 1 is committed to collaborating with our partners in the ecosphere of the development and design of color E Ink related products to further domestic company to have purchased the most number of certificates. At the same time, in order to further expand the scope of our green expand the technology's scope of application, thereby delivering an even more visually impressive experience to users. energy consumption in our operations and due to the ongoing promotion for "energy transition" in Taiwan, we've entered into MOU with In light of the strengths of the ultra-low power consumption and environmentally friendly characteristics of E Ink, the Company is driven to relevant green energy suppliers and planned to purchase green energy from private green power suppliers so as to gradually increase our its promotion as an alternative to traditional paper so that we may advance on our path to the vision of making our environment cleaner usage of renewable energy over the years. and better. This would in turn enable us to respond to the 17 Sustainable Development Goals (SDGs) that the United Nations has set for the by increasing the use of renewable energy in our operations and manufacturing of E Ink displays, we are able to achieve the obJective of Chapter 2 world. Starting from 2016, the Company has identified 6 relevant SDGs as milestones in our endeavors to achieve sustainable operations. reducing carbon emission and power consumption throughout the entire process of manufacturing, distribution and application of our Chapter 2 For operations relating to the Company's management, manufacturing and business promotion, we have also established relevant work ultra-low power consumption E Ink products, thereby driving sustainable development with the eco-friendly value of E Ink so that we can items as our Corporate Social Responsibilities (CSR) and adopted Environment Social Governance (ESG) principles for the measurement and accomplish our visions of becoming a green enterprise through action. assessment of outcomes as our way of determining the Company's current progress in CSR fulfillment so that we can refine our work in the area of sustainable development. Connecting with our stakeholders to promote social inclusiveness; supporting social Looking back at 2019, it was the 3rd year running for the Company to be bestowed with several distinctions in the Taiwan Corporate Sustainability Awards by winning four major awards, including "Top 50 Corporate Sustainability Awards - IT & IC Manufacturing", "Corporate security, health and charitable development with corporate resources Sustainability Report Awards - IT & IC Manufacturing", "Best Performance of Specific Categories for Social Inclusion – Manufacturing" and Through the twin pillars of "e-Reading for Future" - the Electronic Reader Mobile Library Campaign and our Chapter 3 Chapter 3 "best Performance of Specific Categories for Growth" through Innovation. These awards speak volumes about the Company's success commitment to care for local communities, the Company has combined our corporate management in sustainable development in the three maJor aspects of economic growth, social advancement, and environmental protection and our strategies and our core business of E Ink display along with relevant SDGs for the promotion of social achievements in CSR thus far.
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