2019 CORPORATE SOCIAL RESPONSIBILITY REPORT OF PEGATRON GROUP version1.0 Navigate 01 Editorial Principles 03 Identi cation & 20 Responsible 49 Social Care Communication Partnership 50. Social Welfare the 04. Social Responsibility 21. Customer Service 50. Community Involvement Commitment 22. Sustainable Supply Chain Future 05. Stakeholder Communication 07. Material Issue Identi cation 08. Sustainability Development Goals (SDGs)
02 A Word from 10 Company Pro le 26 Sustainable 52 Appendix- Index the CEO 11. About PEGATRON Environment 53. GRI Content Index 11. Financial Performance 27. Low Carbon & Energy 55. United Nations Global 12. Globalization Arrangement 29. Greenhouse Gas Compact 13. Award List 30. Sustainable Design 56. UN Sustainable Development Goals 33. Environmental Protection (SDGS) 57. Statement
14 Sustainable 36 Joyful Work Management 37. Employment Relationship 15. Corporate Governance 39. Attracting & Nurturing Talent 16. Code of Conduct 41. Occupational Health & Safety 17. Information Security 46. Employee Care 18. Risk Management 19. Regulatory Compliance 01
Editorial Principles Editorial Principles A Word from A Word from the CEO the CEO Identi cation & Identi cation & Communication Communication Social Responsibility Social Responsibility Commitment Commitment Stakeholder Stakeholder Communication Communication Material Issue Material Issue Identi cation Identi cation Sustainability Sustainability Development Goals Development Goals Company Pro le Company Pro le About PEGATRON About PEGATRON Financial Performance Financial Performance Globalization Globalization Arrangement Arrangement Award List Award List Sustainable Sustainable Management Management Corporate Governance Corporate Governance Code of Conduct Code of Conduct Information Security Information Security Risk Management Risk Management Regulatory Compliance Regulatory Compliance Responsible Responsible Partnership Partnership Customer Service Customer Service Sustainable Sustainable Supply Chain Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas PEGATRON has issued the corporate social responsibility (CSR) report every year since Sustainable Design Sustainable Design 2009. The report includes our economic, social, and environmental performances of This report is prepared in accordance with the GRI Standards issued by Global Environmental Environmental Protection Protection previous year. In 2020, we issue our twelfth CSR report to continuously disclose our Sustainability Standards Board, GSSB: Core option. In order to increase the Joyful Work Joyful Work commitments, management approaches, strategic goals and performances on each transparency and reliability of the report, the content is veri ed by an independent Employment Employment sustainability issue in 2019. Our CSR report is issued in Traditional Chinese, Simpli ed third party, DNV GL, based on the DNV GL VeriSustain™, AA1000 AS(2008) and Relationship Relationship Chinese and English, and published on PEGATRON’s website for stakeholders’ reference. complied with core option level of GRI Standards. The assurance statement is Attracting & Attracting & The previous version of it was released in June, 2019. attached as an appendix of this report. For nancial data, it is referred to the nancial Nurturing Talent Nurturing Talent statement certi ed by quali ed accountants. Occupational Occupational The CSR report is written by CSR task force team members and its period is from January Health & Safety Health & Safety 1, 2019 to December 31, 2019. PEGATRON referred in this report is composed by Employee Care Employee Care PEGATRON Corporation and its Core Businesses, includes Headquarters (HQ) and Taoyuan Social Care Social Care manufacturing center in Taiwan, Central China operation center (Maintek, Cotek and Social Welfare Social Welfare Casetek in Suzhou), East China operation center (Protek in Shanghai and Pegalobe in If you have any query or comment about this CSR report, please feel free to contact us: Community Community Kunshan), West China operation center (Digitek and Kaichuan in Chongqing) in China, Involvement Involvement Mexico manufacturing center in America and Czech manufacturing center in Europe. Appendix-Index Appendix-Index PEGATRON Corporation GRI Content index GRI Content Index In order to meet IFRS (International Financial Reporting Standards) Consolidated Financial Corporate Quality Policy Center | Sharon Hsieh | Burdey Cheng United Nations United Nations Statements requirement in Taiwan, subsidiaries are included in the nancial E-mail: [email protected] Global Compact Global Compact performances, but the service centers and other listed subsidiaries are excluded from the Address: No. 76, Ligong St., Beitou District, Taipei City 11261, Taiwan UN Sustainability UN Sustainability scope of this report. The entities included in this report account for more than 80% of Development Goals Development Goals consolidated revenue. Website: http://www.pegatroncorp.com/ Statement Statement 02
Editorial Principles Editorial Principles A Word from A Word from the CEO the CEO Identi cation & Identi cation & Communication Communication Collaborative e ort brings Social Responsibility Social Responsibility Commitment Commitment Stakeholder Stakeholder Communication Communication new prospects Material Issue Material Issue Identi cation Identi cation Sustainability Sustainability Confronting the climate change worldwide, Development Goals Development Goals Company Pro le Company Pro le PEGATRON, as a corporate citizen, has included About PEGATRON About PEGATRON Financial Performance Financial Performance climate change risk as one of the key considerations Globalization Globalization Arrangement Arrangement for business sustainability. Award List Award List Sustainable Sustainable Management Management Corporate Governance Corporate Governance Code of Conduct Code of Conduct Information Security Information Security Risk Management Risk Management Regulatory Compliance Regulatory Compliance Responsible Responsible Partnership Partnership Customer Service Customer Service President and CEO SJ Liao Sustainable Sustainable Supply Chain Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas As trade friction between US and China continued in 2019, it ultimately a ected the Confronting the climate change worldwide, PEGATRON, as a corporate citizen, has Sustainable Design Sustainable Design global supply networks on both supply and demand aspects. PEGATRON was inevitably included climate change risk as one of the key considerations for business sustainability. Environmental Environmental Protection Protection a ected by the escalating regional trade tension, but our continuous pursuit of product In order to mitigate the impact of climate change, we have established a long-term Joyful Work Joyful Work and global deployment diversi cation helped to mitigate the impact of tari disputes. energy conservation and carbon reduction goal, and engaged with the CDP actively. To Employment Employment Despite economic headwind over the trade war, PEGATRON’s consolidated revenue of reduce the amount of energy consumed during manufacturing processes and duration Relationship Relationship of use, products are designed in an eco-friendly manner and produced in a greener way. Attracting & Attracting & 2019 had reached a new record high of 1.36 trillion New Taiwan Dollars. We hereby Nurturing Talent Nurturing Talent would like to thank all our partners for their collaborative e orts in bringing new With management system and CSR policy in place, PEGATRON is committed to Occupational Occupational prospects to PEGATRON. incorporating the philosophy of natural resources conservation into its daily operation. Health & Safety Health & Safety At the same time, PEGATRON proactively responds to the Sustainability Development Employee Care Employee Care Social Care Social Care While pursuing business growth and improving corporate governance, PEGATRON is Goals (SDGs) set by United Nations, and included our responses of climate change risk in Social Welfare Social Welfare also working on strengthening sustainability development and communicating with our sustainability development targets, actions and management indicators. The Community Community stakeholders to express PEGATRON’s value of sustainability in the worldwide supply performances are disclosed in our Corporate Social Responsibility Report accordingly. Involvement Involvement chain. PEGATRON’s performance on sustainable development was recognized by Appendix-Index Appendix-Index external parties. We were ranked the top 20% listed companies in "The Fifth Corporate Looking forward to 2020, despite the outbreak of the Novel Coronavirus which GRI Content index GRI Content Index Governance Evaluation" held by Taiwan Stock Exchange in 2019, and continuously negatively impacts industrial supply chain and global economic climate, PEGATRON United Nations United Nations Global Compact Global Compact awarded the constituent of the FTSE4Good TIP Taiwan ESG Index in 2020. strives to adjust our business strategies and risk management, focus on the wellbeing of UN Sustainability UN Sustainability our employees while executing COVID-19 preventive measures, and provide customers Development Goals Development Goals and employees with high-quality, rapid and e cient services and working environment. Statement Statement Navigate Identi cation & Communication the E ective communication with stakeholders is the Future way to achieve continual improvements and sustainable development. 04 management system (PureCSR management system). The Company not only sets up CSR Editorial Principles Editorial Principles Social Responsibility Commitment objectives and targets every year, but also performs internal audits, external audits and A Word from A Word from corrective actions, as well as reviews CSR performances by PureCSR management review the CEO the CEO Be in line with social responsibility as an meetings to ensure the e ciency of PureCSR management system. We devote to the Identi cation & Identi cation & implementation of environmental management system, occupational safety and health Communication Communication excellent corporate citizen. management system, quality & green management system, greenhouse gas inventory Social Responsibility PEGATRON’s corporate social responsibility is planned, operated and implemented by and energy management system. The certi cates and veri cation statements veri ed by Commitment PureCSR (PEGATRON‘s Corporate Social Responsibility) Steering Committee which is led third-party are disclosed on our company’s website. Stakeholder Communication by CEO authorized by its board of directors. The committee members are consisted of Material Issue relevant departments, including CSR representatives from Corporate Quality Policy Center PureCSR policy Identi cation (CQPC), Human Resource & Administration Center (HR & ADM), Procurement Center, █ Sustainability Customer Service Business Unit (CSBU), Finance & Accounting Center, Legal & IPR Development Goals 1. Abide by all environmental protection, 4. Satisfy customer requirements and (Intellectual Property Right) Center, Audit O ce, Business Units and Operation Centers labor, safety and health laws. become an entirely green enterprise. Company Pro le Company Pro le and Manufacturing Centers. All members identify their elds’ stakeholders according to 2. Conserve natural resources, and actively 5. Enable company-wide promotion of About PEGATRON About PEGATRON their jobs and respond to stakeholders’ concerns in daily operations. Cross unit issues are prevent pollution. corporate responsibility in a social environment. Financial Performance Financial Performance discussed in PureCSR Steering Committee meeting to reach consensus among related Globalization Globalization units. CSR implementation status is periodically reported to the CEO and submitted to the 3. Reduce environmental impact and 6. Summon all employees to participate in Arrangement Arrangement Company’s board for a decision making on major economic, environment and society safety risks. the program and continuously improve it. Award List Award List topics every year. Sustainable Sustainable Management Management Corporate Governance Corporate Governance PEGATRON also commits to implement the following directives with expression of Code of Conduct Code of Conduct PureCSR Steering Committee Organization Chart our intention to ful ll the following: Information Security Information Security : Risk Management Risk Management 01. Abide by environmental and labor laws, regulations and other international requirements Regulatory Compliance Regulatory Compliance CEO to meet global environmental protection, labor rights and zero- hazard activity. Responsible Responsible 02. Educate entire sta s, making them aware to protect environment, respect the dignity Partnership Partnership of life, cherish natural resources, ensure safety and promote physical and mental health Customer Service Customer Service HR & Administration of everyone. 03. Achieve the goal of e ective resource consumption through reusing and recycling of Sustainable Sustainable Finance Supply Chain Supply Chain CSR Management resources as well as supervise waste management to prevent from being reused or Sustainable Sustainable Task Force Team re-sold. Environment Environment Representative Legal & IPC 04. Enhance the monitoring and reducing of environmental pollutant and risk management. Low Carbon & Energy Low Carbon & Energy Meanwhile, improve the e ciency of resource utilization to reduce the impacts on the Greenhouse Gas Greenhouse Gas Audit environment as well as disclose the environmental performance regularly. Sustainable Design Sustainable Design 05. Promote the independence and reliability of the self-management so as to optimize Environmental Environmental Protection Protection Business units Procurement Manufacturing Service the quality of occupational hazard control, and reduce occupational risks to build a Joyful Work Joyful Work satis ed work environment. Employment Employment 06. Establish a management system for corporate social responsibility to improve the Relationship Relationship PEGATRON publicly discloses the practices and performances of corporate social e ciency for environmental protection, ethics, labor rights, safety and health. Attracting & Attracting & responsibility via the publishing of annual CSR report, and takes it as a communication 07. Implement greenhouse gas inventory and reduction program to practice greenhouse Nurturing Talent Nurturing Talent platform for stakeholders. We can get more understanding of their needs and gas reduction to meet international trends in environmental protection and Occupational Occupational requirements so as to have a two-way communication. Meanwhile, the CSR report is Health & Safety Health & Safety customers’ requirements. regarded as a tool to review the strategy of sustainable development management and 08. Implement energy and natural resource management to optimize the utilization rate Employee Care Employee Care ensure the completeness of management system. Social Care Social Care on them in di erent stages of design, purchase and use to achieve the goal of Social Welfare Social Welfare PEGATRON established the “Corporate Social Responsibility Practice Principles” in 2015 continuous improvement, as well as promote the overall environmental performance. Community Community and disclosed it on the company’s o cial website to show its philosophy and 09. Openly pledge the company’s commitment in protecting the environment and labor Involvement Involvement determination on the practice of corporate social responsibility. rights and reducing occupational hazards as well as regularly disclose corporate social Appendix-Index Appendix-Index responsibility information to enhance the trust and communication with stakeholders. Corporate Social Responsibility Practice Principles: GRI Content index GRI Content Index 10. Abide by ethics code of conduct, including business integrity, no improper advantage, http://www.pegatroncorp.com/investorRelation/majorInternalPolicies/lang/en_US United Nations United Nations not to bribe or take bribes, and to protect the personnel who raise any concerns or Global Compact Global Compact inform against illegal acts from being fear of retaliation. UN Sustainability UN Sustainability To have an e ective management on CSR related issues, PEGATRON establishes PureCSR Development Goals Development Goals 11. Emphasize on equal opportunities as well as prohibit any kinds of harassment, policy and implements the corporate social responsibility and safety & health Statement Statement discrimination or inhumane treatment, and establish two-way communication channels
and the mechanism for employee consultation and participation to maintain good relationship between employees and employers. 12. Continually address the con ict minerals issues and exercise due diligence on the sources of con ict minerals to conduct responsible procurement. 13. Do our best to summon our suppliers to comply with related corporate social responsibility regulations and RBA Code of Conduct to sustainably grow together with our suppliers. 01. Abide by environmental and labor laws, regulations and other international requirements to meet global environmental protection, labor rights and zero- hazard activity. 02. Educate entire sta s, making them aware to protect environment, respect the dignity of life, cherish natural resources, ensure safety and promote physical and mental health of everyone. 03. Achieve the goal of e ective resource consumption through reusing and recycling of resources as well as supervise waste management to prevent from being reused or re-sold. 04. Enhance the monitoring and reducing of environmental pollutant and risk management. Meanwhile, improve the e ciency of resource utilization to reduce the impacts on the environment as well as disclose the environmental performance regularly. 05. Promote the independence and reliability of the self-management so as to optimize the quality of occupational hazard control, and reduce occupational risks to build a satis ed work environment. 06. Establish a management system for corporate social responsibility to improve the e ciency for environmental protection, ethics, labor rights, safety and health. 07. Implement greenhouse gas inventory and reduction program to practice greenhouse gas reduction to meet international trends in environmental protection and customers’ requirements. 08. Implement energy and natural resource management to optimize the utilization rate on them in di erent stages of design, purchase and use to achieve the goal of continuous improvement, as well as promote the overall environmental performance. 09. Openly pledge the company’s commitment in protecting the environment and labor rights and reducing occupational hazards as well as regularly disclose corporate social responsibility information to enhance the trust and communication with stakeholders. 10. Abide by ethics code of conduct, including business integrity, no improper advantage, not to bribe or take bribes, and to protect the personnel who raise any concerns or inform against illegal acts from being fear of retaliation. 11. Emphasize on equal opportunities as well as prohibit any kinds of harassment, discrimination or inhumane treatment, and establish two-way communication channels
05 and the mechanism for employee consultation and participation to maintain good PEGATRON’s stakeholder Editorial Principles Editorial Principles relationship between employees and employers. ： A Word from A Word from 12. Continually address the con ict minerals issues and exercise due diligence on the the CEO the CEO sources of con ict minerals to conduct responsible procurement. Identi cation & Identi cation & Customer Communication Communication 13. Do our best to summon our suppliers to comply with related corporate social Social Responsibility responsibility regulations and RBA Code of Conduct to sustainably grow together with NGO Employee Commitment our suppliers. Stakeholder Communication Media Investor Material Issue Identi cation Sustainability As a member of RBA (Responsible Development Goals Business Alliance), we continuously Company Pro le Company Pro le participate in the relevant activities Government Supplier About PEGATRON About PEGATRON and have discussions with peers on Financial Performance Financial Performance the issues and trends of business sustainability. Also, we actively respond to several Community Competitor Globalization Globalization corporate responsibility projects and initiatives, including responsible minerals and Arrangement Arrangement environmental sustainability. In addition to be the member of RBA, PEGATRON is also Award List Award List one of the members of the Taipei Computer Association (TCA). Our chairman, Sustainable Sustainable All issues that stakeholders pay attention to and communication channels are listed in Tzu-Hsien, Tung, is its managing director. As a world-class industry association, TCA Management Management the following table: Corporate Governance Corporate Governance continues to be an industry promoter on ICT (Information and Communication Code of Conduct Code of Conduct Technology), and works hard with more than 4,000 members to create another Communication Channel / Stakeholder Concerned Issues Information Security Information Security business peak with huge business opportunities of Taiwan. Communication Frequency Risk Management Risk Management Risk Control and Adjustment Supplier Conferences / Annual Regulatory Compliance Regulatory Compliance Environmental Regulatory Responsible Responsible Customer Audits / Aperiodic Partnership Partnership Compliance Customer Service Customer Service Business Ethics and Business Sustainable Sustainable Stakeholder Communication Customer Regular Meetings / Monthly Supply Chain Supply Chain Integrity Sustainable Sustainable Supplier Management on Environment Environment RBA-Online / Aperiodic Stakeholders are classi ed into 9 groups according to the degree Environmental Low Carbon & Energy Low Carbon & Energy of interaction in uences. Greenhouse Gas Greenhouse Gas Implementation of Occupational Customer Websites or Sustainable Design Sustainable Design The 9 stakeholders include employees, customers, investors, government agencies, Health & Safety Platforms / Aperiodic Environmental Environmental suppliers, competitors, media, NGOs (Non-Government Organizations) and communities. Protection Protection We communicate with stakeholders through various communication channels and Employment and Retention Regular Meetings / Monthly Joyful Work Joyful Work identify their needs and requirements to keep good relationships with them. Employment Employment PEGATRON sets a speci c webpage with an external communication mailbox Wages and Bene ts Internal Website / Aperiodic Relationship Relationship ([email protected]) maintained by the dedicated personnel for Attracting & Attracting & Training, Education and Internal Publications or stakeholders on our company’s website, as one of communication channel with Nurturing Talent Nurturing Talent Employee Performance Review Announcements / Aperiodic Occupational Occupational stakeholders. We understand reasonable expectations and needs of stakeholders by Implementation of Occupational Health & Safety Health & Safety proper communications, and respond these major concerned CSR issues. Grievance Box / Aperiodic Employee Care Employee Care Health & Safety Social Care Social Care Risk Control and Adjustment Co ee Talks / Annual Social Welfare Social Welfare Environmental Regulatory Community Community Telephone Hotlines / Aperiodic Involvement Involvement Compliance Appendix-Index Appendix-Index Labor-Management GRI Content index GRI Content Index Meetings / Quarterly United Nations United Nations Global Compact Global Compact Operational and Financial Monthly Business Reports / UN Sustainability UN Sustainability Performance Monthly Development Goals Development Goals Investor Statement Statement Wage Levels and Local Hiring Shareholders' Meetings / Annual
Investor Conferences / Quarterly Annual Reports / Annual Market Observation Post System (MOPS) / Aperiodic Operational and Financial Monthly Business Reports / Performance Monthly Wage Levels and Local Hiring Shareholders' Meetings / Annual
06 Investor Conferences / Public Hearings on Policy / Governance Risk Control and Adjustment Editorial Principles Editorial Principles Quarterly Aperiodic A Word from A Word from Risk Control and Adjustment Annual Reports / Annual Environmental Regulatory Questionnaires and the CEO the CEO Investor Identi cation & Identi cation & Market Observation Post Compliance Interviews / Aperiodic Communication Communication Government System (MOPS) / Aperiodic Implementation of Occupational Projects and Initiatives / Social Responsibility Commitment Employment and Retention Health & Safety Aperiodic Stakeholder Communication Wages and Bene ts Governance Conferences / Aperiodic Material Issue Environmental Protection Identi cation Employment Protection Sustainability Socioeconomic Regulatory Operational and Financial Press Conferences / Development Goals Compliance Performance Aperiodic Company Pro le Company Pro le About PEGATRON About PEGATRON Operational and Financial Supplier Conferences / Wage Levels and Local Hiring Press Releases / Aperiodic Financial Performance Financial Performance Performance Annual Business Ethics and Business External Communication Globalization Globalization Arrangement Arrangement Wage Levels and Local Hiring Supplier Audits / Annual Integrity Mailbox / Aperiodic Award List Award List Supplier Relationship Greenhouse Gas Emissions Sustainable Sustainable Supplier Raw Materials Purchasing Management Management Management / Aperiodic Environmental Regulatory Media Corporate Governance Corporate Governance Environmental Impact Evaluation External Communication Compliance Code of Conduct Code of Conduct and Management of Product Mailbox / Aperiodic Employment and Retention Information Security Information Security Environmental Regulatory Risk Management Risk Management RBA-Online / Aperiodic Wages and Bene ts Regulatory Compliance Regulatory Compliance Compliance Employment Protection Responsible Responsible Negative Impacts on Local External Communication Partnership Partnership Implementation of Occupational Communities Mailbox / Aperiodic Customer Service Customer Service Health & Safety Sustainable Sustainable Violations In uencing Rights of Supply Chain Supply Chain Local Residents Operational and Financial Participate Organizations / Sustainable Sustainable Performance Aperiodic Environment Environment Community Risk Control and Adjustment Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Emissions Conferences / Aperiodic Greenhouse Gas Greenhouse Gas Environmental Protection Environmental Regulatory External Communication Sustainable Design Sustainable Design Environmental Regulatory NGO Compliance Mailbox / Aperiodic Environmental Environmental Compliance Protection Protection Energy Inventory and Joyful Work Joyful Work Environmental Regulatory Conferences / Aperiodic Conservation Employment Employment Compliance Relationship Relationship Environmental Protection Attracting & Attracting & Management System to Avoid Nurturing Talent Nurturing Talent Forced Labor Occupational Occupational Competitor Health & Safety Health & Safety Operational and Financial Employee Care Employee Care Performance Social Care Social Care Wage Levels and Local Hiring Social Welfare Social Welfare Community Community Greenhouse Gas Emissions Involvement Involvement Appendix-Index Appendix-Index Environmental Impact Evaluation GRI Content index GRI Content Index and Management United Nations United Nations Global Compact Global Compact Employment and Retention UN Sustainability UN Sustainability Socioeconomic Regulatory Development Goals Development Goals Compliance Statement Statement 07 The identi cation result of 2019 Sustainability Issues: Editorial Principles Editorial Principles Material Issue Identi cation 40 A Word from A Word from S3 the CEO the CEO S1 G1 E7 and decisions In uence on stakeholder assessments G9 Identi cation & Identi cation & 16 major material issues are identi ed throughout the 35 G2 G7 E5 Communication Communication comprehensive consideration of the impacts on business G8 S2 30 Social Responsibility S9 E9 Commitment operations as well as the concerns of stakeholders. S5 S4 E6 25 S19 Stakeholder In order to enhance the communication e ciency with stakeholders, we not only collected E1 E2 Communication G3 suggestions from the employees who may directly contact stakeholders in their daily 20 E10 Material Issue S8 E8 Identi cation operations, but also investigated internally and analyzed the concerns of di erent S6 S18 15 S16 Sustainability stakeholders through the indirect and direct channels. S7 S20 G5 Development Goals E3 S14 We identi ed the issues stakeholders concerned according to the four principles of the 10 Company Pro le Company Pro le S13 G10 Global Reporting Initiative, which are materiality, stakeholder inclusiveness, sustainability S12 G4 About PEGATRON About PEGATRON G6 context, and completeness through a systematic approach, and providing the information 5 S10 Financial Performance Financial Performance E4 S17 through CSR Report accordingly to ensure stakeholders receive the information they S15 Globalization Globalization 0 S11 Arrangement Arrangement need. There are 40 sustainability issues included in the materiality assessment according 0 5 10 15 20 25 30 35 40 Award List Award List to the aspects of GRI Standards, including economic, environmental and social topics, Signi cance of economic, environmental, and social impacts Sustainable Sustainable as well as the concerns from internal and external parties. The assessment process is Management Management listed as below. Corporate Governance Corporate Governance Economic E3 Water S6 Non discrimination Code of Conduct Code of Conduct G1 Economic performance E4 Biodiversity S7 Freedom of association and Information Security Information Security Collect Survey Analyze Determine G2 Market presence E5 Emissions collective bargaining Risk Management Risk Management 1 2 3 4 G3 Indirect economic E6 E uents and waste S8 Child labor Regulatory Compliance Regulatory Compliance impacts E7 Environmental compliance S9 Forced or compulsory labor Responsible Responsible 1. Collect the 2. Survey the 3. Analyze the 4. Determine Partnership Partnership G4 Procurement practices E8 Supplier environmental S10 Security practices sustainable issues issues the material assessment Customer Service Customer Service G5 Anti-corruption S11 Rights of indigenous peoples issues issues E9 Green product Sustainable Sustainable G6 Anti-competitive behavior S12 Human rights assessment Supply Chain Supply Chain G7 Governance E10 Climate change S13 Local communities ● Identify the ● Collect ● Sequence ● Set threshold Sustainable Sustainable G8 Ethics and integrity S14 Supplier social assessment Environment Environment stakeholders, concerned based on to identify Social G9 Risk Management S15 Public policy Low Carbon & Energy Low Carbon & Energy inventory issues by degrees of 2019 material S1 Employment G10 Tax S16 Customer health and safety Greenhouse Gas Greenhouse Gas sustainable questionnaires, concerned issues and S2 Labor/management relations issues and daily issues and con rm their S17 Marketing and labelling Sustainable Design Sustainable Design Environmental S3 Occupational health and safety summarize communication impact levels of boundaries. S18 Customer privacy Environmental Environmental E1 Materials S4 Training and education Protection Protection them based on records (include them on S19 Socioeconomic compliance E2 Energy S5 Diversity and equal opportunity Joyful Work Joyful Work the GRI customer economy, S20 Con ict minerals Employment Employment standards. requirements), society and Relationship Relationship media news environment. Attracting & Attracting & and so on. Nurturing Talent Nurturing Talent Occupational Occupational Health & Safety Health & Safety Employee Care Employee Care Based on the result of materiality analysis, CSR taskforce team identied the material Social Care Social Care issues of 2019 and responded in the CSR Report. After the material issues identi ed, we Social Welfare Social Welfare de ne the scope covered by related aspects to ensure the information transparency Community Community and the suitable boundaries. In addition to the response and disclosure in the corporate Involvement Involvement social responsibility report, PEGATRON also focuses on using the material issues to Appendix-Index Appendix-Index communicate with stakeholders and takes them as material issues of continuous GRI Content index GRI Content Index improvement. We use the concept of PDCA (Plan–Do–Check–Act) and periodically United Nations United Nations assess the e ectiveness of our management. Global Compact Global Compact UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement 08 The boundaries of material issues and SDGs: Editorial Principles Editorial Principles Value Chain Other Stakeholders A Word from A Word from Category Material Issue Chapter SDGs the CEO the CEO Investor Govern- Com- Media/ NGO/ Supplier HQ & Site Customer ment munity Competitor Identi cation & Identi cation & Communication Communication Economic performance Financial Performance ◎ ◎△ ◎ ◎ Social Responsibility Market presence Labor Relationship ◎ ◎△ ◎ ◎ Commitment Economic Governance Corporate Governance Stakeholder Ethics and integrity Code of Conduct ◎△ ◎ ◎ Communication Risk management Risk Management ◎ ◎△ ◎ Material Issue ◎ ◎△ ◎ ◎ Identi cation Materials Sustainable Design Sustainability Energy Low Carbon & Energy ◎ ◎△ ◎ Development Goals Emissions Greenhouse Gas ◎△ Company Pro le Company Pro le Environmental Euents and waste Environmental Protection ◎△ ◎ About PEGATRON About PEGATRON Environmental compliance Environmental Protection ◎△ ◎ ◎ Financial Performance Financial Performance Green product Sustainable Design ◎ ◎△ ◎ Globalization Globalization ◎ ◎△ ◎ Arrangement Arrangement Employment Labor Relationship
Award List Award List Labor/ management relations Employee Care ◎ ◎△ ◎
Sustainable Sustainable Social Occupational health and safety Occupational Health &Safety ◎△
Management Management Training and education Attracting and Nurturing Talent ◎ ◎△ ◎
Corporate Governance Corporate Governance Socioeconomic compliance Regulatory Compliance ◎ ◎△ Code of Conduct Code of Conduct ◎△ Information Security Information Security Remark 1: ◎ Issue with direct impacts; △ Issue is disclosed in this report (Only consider the issue with direct impacts. Others are not presented.); the boundaries of material issues is PEGATRON. Risk Management Risk Management Remark 2: The economic performance of subsidiaries is disclosed in this report because of the consolidated financial report. Regulatory Compliance Regulatory Compliance Responsible Responsible Partnership Partnership Customer Service Customer Service Sustainability Development Goals (SDGs) Sustainable Sustainable Supply Chain Supply Chain natural resources, we enhance the e ciency of energy and resources utilization, design in Sustainable Sustainable Growth, Equality and Mutualism a manner of eco-friend and produce in a greener way. We continue to reduce the Environment Environment The United Nations published Sustainability Development Goals (SDGs) in 2014 which negative impacts led by our operations and activities towards the environment and Low Carbon & Energy Low Carbon & Energy includes 17 Goals and 169 Targets. As a corporate citizen and one of the key roles on optimize e ciency of energy and resources utilization through continuous improvement Greenhouse Gas Greenhouse Gas global supply chain of technology industry, PEGATRON proactively responds the SDGs and introduction of innovative technology. Sustainable Design Sustainable Design in 3 directions on sustainability, which are boosting the growth of economy (Growth), Environmental Environmental maintaining the equality of society (Equality) and bene ting the environment towards Protection Protection Gender Practice Gender Equality in Workplace Joyful Work Joyful Work mutualism (Mutualism). Equality Eliminate discrimination of gender and Employment Employment Boosting the Growth of Economy (Growth) build a friendly workplace. Relationship Relationship Attracting & Attracting & PEGATRON continues to accumulate inner capacity on R&D and technology to develop Sustainable Use Current Energy with a Greener Way Nurturing Talent Nurturing Talent new products to respond the market trend, as well as extend our business towards Energy Improve the e ciency of energy use and Occupational Occupational reduce the cost of energy. Health & Safety Health & Safety di erent elds. We not only focus on increasing revenue, but also create local working opportunities to boom the economy development and cultivate local talents. Enhance the Economic Employee Care Employee Care Economic Performance and Workplace Social Care Social Care Growth & Maintaining the Equality of Society (Equality) Create employment opportunities Decent Work Social Welfare Social Welfare and protect labor rights. Community Community PEGATRON supports gender equality in workplace by taking practical actions. Every Involvement Involvement gender can have equal opportunity on employment, promotion and development. To Responsible Engage in Responsible Appendix-Index Appendix-Index defend international labor rights, involuntary or forced labors are forbidden. We Production Consumption and Production Responsible sourcing, sustainable GRI Content index GRI Content Index cooperate with our partners via constant communication to learn from each other, so as design and pollution prevention. United Nations United Nations to promote labor rights jointly in the industry value chain. Global Compact Global Compact Climate Evaluate and Mitigate the Impact on UN Sustainability UN Sustainability Bene ting the Environment towards Mutualism (Mutualism) Action Climate Change Development Goals Development Goals PEGATRON engages in economic development, meanwhile takes environmental Reduce the risk of climate change on Statement Statement protection into account. To respond the issues on climate change and the shortage of the operations at each site. 09 PEGATRON SDGs targets, actions and management indicators performance： Editorial Principles Editorial Principles A Word from A Word from the CEO the CEO PEGATRON Actions and Indicators Identi cation & Identi cation & Action Indicator Performance Communication Communication UN SDGs Target Social Responsibility Implement gender Closure rate of gender equality Commitment Achieve gender equality Equality of Eliminate equality policy relevant opinions 100% Stakeholder and empower all women E. society discrimination of Communication and girls (Equality) gender and build a Promotion of Completion rate of maternity Material Issue friendly workplace 100% Identi cation maternity protection workplace practice Sustainability Bene ting the Development Goals Ensure access to Improve the Number of ISO 50001 certi cates environment Implement energy 2 Company Pro le Company Pro le a ordable, reliable, e ciency of energy in facilities M. towards management and About PEGATRON About PEGATRON sustainable and modern use and reduce the mutualism reduction projects Electricity usage per million NTD 1.81 GJ/ energy for all cost of energy Financial Performance Financial Performance (Mutualism) in revenue million NTD Globalization Globalization Arrangement Arrangement Improve the economic Reached NTD Revenue Award List Award List Create employment performance 1,366 billion Sustainable Sustainable opportunities Management Management Create opportunities for Reached Corporate Governance Corporate Governance Number of Employees Promote sustained, decent jobs 169,083 persons Code of Conduct Code of Conduct Growth of inclusive and sustainable G. Information Security Information Security economy Please refer to economic growth, full Risk Management Risk Management (Growth) the Attracting & and productive Cultivate and retain Provide multiple Regulatory Compliance Regulatory Compliance Multiple training channels Nurturing Talent employment and decent the talents training resources Responsible Responsible – Employee Partnership Partnership work for all Training. Customer Service Customer Service Sustainable Sustainable Perform no child Completion rates of Zero Child Equality of Protect labor rights Supply Chain Supply Chain labor policy Labor Policy 100% Sustainable Sustainable E. society Environment Environment (Equality) Prevent involuntary Perform voluntary Closure rate of involuntary 100% Low Carbon & Energy Low Carbon & Energy labors employment policy employment relevant grievance cases Greenhouse Gas Greenhouse Gas Bene ting the Sustainable Design Sustainable Design Implement hazardous environment Sustainable design Completion rate of HSF trainings 100% Environmental Environmental substances free management Protection Protection M. towards Contamination Joyful Work Joyful Work mutualism Promotion of waste Ratio of waste recycling 97% Employment Employment (Mutualism) prevention recycling treatment Relationship Relationship Ensure sustainable Completion rate of con ict Attracting & Attracting & consumption and Responsible sourcing Con ict minerals survey 97% Nurturing Talent Nurturing Talent production patterns minerals survey Occupational Occupational Equality of Completion rate of the supplier Health & Safety Health & Safety 98% E. society CSR audit Employee Care Employee Care (Equality) Social Care Social Care Sustainable supply Conduct supply chain Completion rate of responding chain management PEGATRON Supplier Responsible Social Welfare Social Welfare 89.8% Community Community Business Alliance Code of Involvement Involvement Conduct Agreement Appendix-Index Appendix-Index Bene ting the GRI Content index GRI Content Index Take urgent action to Reduce the risk of Conduct greenhouse gas environment GHG emissions per million NTD in 0.44 United Nations United Nations combat climate change M. climate change on emissions reduction Global Compact Global Compact towards revenue tCO2e / and its impacts mutualism the operations at projects million NTD UN Sustainability UN Sustainability each site Development Goals Development Goals (Mutualism) Statement Statement Navigate Company Pro le the Create a new style based on the competence Future in both design and manufacturing. 11 Our Vision About PEGATRON █ Editorial Principles Editorial Principles We work on the belief that technology has the potential to transform imaginations into A Word from A Word from the CEO the CEO opportunities and challenges into pleasures. With our mission of “navigating the Identi cation & Identi cation & “Joyful Working, Happy Living” is the foundation of our future”, PEGATRON seeks to pursue the goal of becoming an industry-leading company Communication Communication corporate philosophy and the basis towards economic growth that satis es people throughout the world with its unique design innovations and Social Responsibility exceptional services. Commitment and sustainable development. Stakeholder Communication Founded in 2008, PEGATRON is a worldwide leader providing DMS (Design, Manufacturing and Service) services. PEGATRON o ers assembly service to customers on a wild range of Management Philosophy Material Issue █ Identi cation electronics products in computing, communications and consumer electronics segments, PEGATRON expects all of our employees to work sincerely and joyfully so that to inspire Sustainability including Notebook PCs, DeskTop PCs, Motherboards (MB), Cable Modems, Set-Top Development Goals the potential of each one of them. Through the tight relationship among teams with Boxes, Smartphones, Game Consoles, Tablet PCs, Wearable Devices, Smart Home Devices, di erent functions, Pegatron employees are able to create truly market-driven products Company Pro le Company Pro le and Automotive Electronics etc. In addition to providing assembly service for brand About PEGATRON based on maximizing bene t of customers. Ultimately, customer can experience better customers, the Company also engages in development, design, and manufacturing of lives with PEGATRON’s design and innovation. Financial Performance peripherals and components of the above-mentioned products. As the devices Globalization mentioned above require the combination of hardware and software capabilities to Arrangement integrate with technologies in computing, communication, video, audio, etc. Pegatron, Award List Sustainable Sustainable with the solid foundation in research and development, has the competitive edge to Management Management provide integrated services to brand customers. With IoT being ourishing in the past few Financial Performance Corporate Governance Corporate Governance years, Pegatron is devoted to enhance its core competency and apply core technologies Code of Conduct Code of Conduct into di erent areas such as smart home products and car electronics. In terms of Information Security Information Security operation, challenges arose from trade tension between China and United States which Continuously breakthrough ourselves and go further with Risk Management Risk Management negatively impacted global economic outlook and regional manufacturing activities. To steady steps. overcome these challenges, Pegatron continues to increase automation level and Regulatory Compliance Regulatory Compliance The consolidated revenue of PEGATRON reached NT$1,366 billion in 2019, increased by Responsible Responsible improve overall manufacturing e ciency through appropriate resource planning and 2% from that of 2018, resulted mainly from the growth in computing products demand. Partnership Partnership better cost management. In order to o er multiple choices of manufacturing base and In 2019, PEGATRON Group received tax bene t of TWD NT$400 million as an encouragement Customer Service Customer Service assist customer reducing impacts from trade tension, Pegatron has been actively for further investment according to regulations. For more detailed operating performance Sustainable Sustainable adjusting the deployment of global manufacturing layout by increasing investment in Supply Chain Supply Chain and nancial information, please refer to the Company’s 2019 Annual Report. Taiwan and setting up operations in South East Asia. PEGATRON has operation and Sustainable Sustainable Environment Environment manufacturing locations globally including Taiwan, China, United States, Mexico, Czech http://www.pegatroncorp.com/investorRelation/annualReports/lang/en_US Low Carbon & Energy Low Carbon & Energy Republic and Indonesia in 2019. With the global operation network, the Company hopes to provide timely support to customers and o ers all value added services to be a one Greenhouse Gas Greenhouse Gas The brief consolidated income statement of PEGATRON and its Sustainable Design Sustainable Design stop shop for total solutions. Environmental Environmental subsidiaries for the year ended 2019 and 2018 are as following: Protection Protection Joyful Work Joyful Work Unit: NTD in million 2019 2018 Employment Employment PEGATRON File Relationship Relationship Operating Revenue 1,366,287 1,340,002 Attracting & Attracting & Company name: PEGATRON Corporation Cost of Sales 1,321,182 1,299,233 Nurturing Talent Nurturing Talent Occupational Occupational Date of establishment: Jan 1st, 2008. Gross Pro t 45,105 40,769 Health & Safety Health & Safety Headquarters: No. 76, Ligong St., Beitou District, Taipei City, Taiwan Operating Expenses 28,199 28,838 Employee Care Employee Care Stock code: 4938 (listed on the Taiwan Stock Exchange in 2010) Operating Income 16,906 11,931 Social Care Social Care Chairman of the Board: Tzu-Hsien Tung Non-operating Income & Expenses 8,562 3,125 Social Welfare Social Welfare Employee size (dispatched labor included): About 169,083 employees Community Community Pro t before Tax 25,468 15,056 Involvement Involvement worldwide in 2019 Tax Expense 7,184 3,940 Appendix-Index Appendix-Index Capital: NT$26.1 billion Pro t 18,284 11,116 GRI Content index GRI Content Index Revenue: Reached NTD 1,366 billion in 2019 Other Comprehensive Income (4,023) 1,777 United Nations United Nations Main businesses: Computing, communication, and consumer electronics products Global Compact Global Compact Comprehensive Income 14,261 12,893 Major customers: Renowned global information technology and UN Sustainability UN Sustainability Pro t, Attributable to Owners of Parent 19,318 11,115 Development Goals Development Goals communication brands Statement Statement Comprehensive Income, Attributable to Owners of Parent 15,890 13,097 12 The illustration of the above mentioned categories Editorial Principles Editorial Principles Globalization Arrangement A Word from A Word from the CEO the CEO AzureWave PEGAglobe Identi cation & Identi cation & Assess the arrangement comprehensively to perfect the service globally. Protek Camera Module, Communication Communication Casetek Wireless Module, SiP In the area of high technology industry around the world, Taiwan is placed in a Light Metal, Anodizing Kinsus/ Piotek Social Responsibility Cotek Digitek Commitment signi cant position. Many famous brands rely on innovation and exible researching IC Substrate, PCB CaseTek / Kaedar PEGAVISION Stakeholder skills of Taiwan’s technology industry. Responding to lower and lower gross margin of Metal, Plastic, Tooling Communication OEM, original equipment manufacturing enterprises, the Group actively thinks about Contact Lens Maintek Ostrava, FuYang Material Issue how to overcome this challenge, and moves toward a new model called DMS, Design, Czech ASRock Identi cation FPC PC MB, IPC, Server Manufacturing and Service. Batam, Juarez, Sustainability Indonesia Mexico Lumens Development Goals Our manufacturing facilities and service centers have been strategically established all Optoelectronics Company Pro le Company Pro le over the world to provide the most e cient service to our customers. We set up these About PEGATRON operation centers based on the strengths of the individual locations to provide the fast Core Business Vertical Integration Strategic Investment Financial Performance and customized processes and solutions to our customers. Globalization Arrangement Award List Sustainable Sustainable 1. Deployment of DMS Core Business Management Management Manufacturing Site Service Center Design Center Corporate Governance Corporate Governance Maintek Computer (Suzhou) Co., Ltd manufactures Notebook (NB), Desktop (DT), Code of Conduct Code of Conduct Motherboard(MB), Consumer Electronics(CE) and Networking product, while Protek Information Security Information Security (Shanghai) Limited mainly manufactures handheld device, Pegaglobe Electronics Risk Management Risk Management (Kunshan) manufactures handheld device. Besides, Digitek Computer (Chongqing) Co., Suzhou Regulatory Compliance Regulatory Compliance Ostrava, Czech Ltd mainly manufactures Notebook. Besides, PT. PEGATRON Technology Indonesia mainly Chongqing Responsible Responsible Tokyo, Japan 營運總部 manufactures Networking product. As a result of the free trade zone in North America and Partnership Partnership Indiana, US tax regulations by European Union and in order to enhance customer service, Pegatron Customer Service Customer Service Mexico, S.A. DE C.V and Pegatron Czech s.r.o. (“PCZ”) were established as the major Sustainable Sustainable Kunshan Supply Chain Supply Chain Taipei manufacturing centers in America and Europe respectively. Juarez, Mexico Sustainable Sustainable Environment Environment Low Carbon & Energy Low Carbon & Energy Taoyuan Shanghai, Greenhouse Gas Greenhouse Gas 2. Deployment of Vertical Integration Sustainable Design Sustainable Design Xindian Batam, Indonesia Environmental Environmental Investment Protection Protection category Company name Remark Joyful Work Joyful Work In additional to mental stamping for Employment Employment Relationship Relationship desktop PC, Casetek has gradually developed technology in plastic Attracting & Attracting & Major investments of Pegatron Group can be mainly divided into the following Casetek computer (Suzhou) co., ltd. Nurturing Talent Nurturing Talent injection and become the main three categories: manufacturing center of mechanical Occupational Occupational components in the group. Health & Safety Health & Safety (1) DMS core business: Employee Care Employee Care Central China operation center (Maintek, Cotek in Suzhou and PT. PEGATRON Kaedar electronics (Kunshan) co., ltd. Social Care Social Care Technology Indonesia in Indonesia), East China operation center (Protek in Shanghai Mechanical Kai He Computer Accessory (Suzhou) Social Welfare Social Welfare component co., ltd. and Pegalobe in Kunshan), West China operation center (Digitek in Chongqing), Established via joint venture Community Community Core-tek (Shanghai) limited Involvement Involvement PEGATRON Mexico manufacturing center and PEGATRON Czech manufacturing center Dongbu zsc Appendix-Index Appendix-Index (2) Vertical Integration: GRI Content index GRI Content Index A light metal manufacturing company; Casetek (Suzhou); Kaedar Electronics (Kunshan), Casetek Holdings Ltd. (Cayman) and Casetek Holdings Ltd. (Cayman) United Nations United Nations we merge it through acquisitions. Global Compact Global Compact FuYang Technology. A new established company, which UN Sustainability UN Sustainability (3) Strategic Investment: FuYang Technology Corporation Development Goals Development Goals focus on the FPC module. Kinsus/ Piotek, ASRock, Azurewave, Lumens and Pegavision. Statement Statement 13 3. Deployment Strategic Investment Editorial Principles Editorial Principles A Word from A Word from Company name Remark the CEO the CEO Identi cation & Identi cation & Communication Communication ASRock Incorporation Manufacturing and sales of a leading brand in low to Social Responsibility mid end motherboard and industry computer. Commitment Kinsus Interconnect Stakeholder Technology Corporation/ Manufacturing and sales of BGA substrate and PCB. Communication Piotek Holding Limited Material Issue Identi cation Sustainability Azurewave Technologies Inc. Major products including Wi-Fi module, camera Development Goals module, TV card and LED products. Company Pro le Company Pro le About PEGATRON Lumens Digital Optics Inc. Major products including special purpose projector Financial Performance and light engines for large screen monitor. Globalization Arrangement Pegavision Corporation Production and retail of own-brand contact lenses Award List and OEM supplier for local and overseas brands. Sustainable Sustainable Management Management Corporate Governance Corporate Governance Code of Conduct Code of Conduct Information Security Information Security Risk Management Risk Management Regulatory Compliance Regulatory Compliance Award List Responsible Responsible Partnership Partnership Ranked #2 among 2019 Common Wealth Magazine 2000 Survey in Customer Service Customer Service ˙ Sustainable Sustainable Taiwan Manufacturing Companies Supply Chain Supply Chain Top 20% of the best companies among The Sixth Corporate Governance Evaluation Sustainable Sustainable ˙ Environment Environment held by Taiwan Stock Exchange Low Carbon & Energy Low Carbon & Energy A constituent of the FTSE4Good TIP Taiwan ESG Index in 2019 Greenhouse Gas Greenhouse Gas ˙ Sustainable Design Sustainable Design 2019 Certi ed Nursing Room by the Health Bureau of Taipei City ˙ Environmental Environmental Protection Protection 2019 Certi ed Badge of Accredited Healthy Workplace by the Health Promotion ˙ Joyful Work Joyful Work Administration, Ministry of Health and Welfare of Taiwan Employment Employment 2017-2018 Municipal Safety Enterprise (Maintek was awarded in January, 2019.) Relationship Relationship ˙ Attracting & Attracting & Outstanding Foreign Investment Enterprise Nurturing Talent Nurturing Talent ˙ (Maintek was awarded in January, 2019.) Occupational Occupational Health & Safety Health & Safety Employee Care Employee Care Social Care Social Care Social Welfare Social Welfare Community Community Involvement Involvement Common Wealth Taiwan FTSE4Good TIP Nursing Room by the Badge of Accredited Appendix-Index Appendix-Index Magazine Stock Exchange Taiwan ESG Index Health Bureau of Taipei City Healthy Workplace GRI Content index GRI Content Index United Nations United Nations Global Compact Global Compact UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement Navigate Sustainable Management the Respect the stakeholders and we will have positive contribution Future toward our own development 15 • LL.B., National Taiwan University • LL.M., University of British Columbia Editorial Principles Editorial Principles Corporate Governance • LL.M., Harvard Law School A Word from A Word from • S.J.D., Harvard Law School • Senior Partner of Lee and Li the CEO the CEO We honor ourselves as a corporate citizen, follow legal requirements Director C.V. Chen • Vice Chairman & Secretary-general Attorneys-At-Law Identi cation & Identi cation & and Director of Straits Exchange • Director of Asia Cement Corporation Communication Communication Foundation (SEF) and self-monitor the compliance. • President of The Red Cross Society Social Responsibility of The Republic of China Commitment • Ph.D of Business Management, Stakeholder Shareholders' Meeting National Chengchi University • Chairman of Yangtze Associates Communication • Director and President of Huiyang Private We have adopted electronic votes as one of the means which shareholders may exercise • Political Deputy Minister, the Material Issue Ministry of Finance, R.O.C. Equity Fund Co., Ltd. Identi cation their voting rights in shareholders meetings since 2012. By doing so, we ensure that • Chairman of Bank of Taiwan • Director of Asustek Computer Inc. Sustainability shareholders can exercise their votes in accordance with laws and participate in the Director T.K. Yang • Executive Secretary of National • Independent Director of DBS Bank Development Goals Development Fund, Executive Yuan • Director of TTY Biopharm Company Limited Company's major decisions and election of directors/ independent directors. Total shares • Director of Taiwan Stock Exchange Company Pro le Company Pro le • President of China Development held by shareholders via electronic voting represented 82.31% of shares presented at Industrial Bank • Director of CHIEN KUO Construction Co., LTD. About PEGATRON Pegatron 2019 annual shareholders general meeting. All agenda items, whether it • Associate Professor of MBA at • Director of Airiti Inc. Financial Performance involves an acknowledgment or discussion, were fully discussed by participating National Chengchi University Globalization shareholders before proceeding with the vote. The numbers of votes in favor, against and • Bachelor of Economics, National Arrangement Taiwan University Award List abstained votes for each agenda item are listed in detail in the meeting minutes and • Master degree in Economics, Sustainable Sustainable disclosed on the Market Observation Post System. National Taiwan University Management Management • Ph.D. in Economics, Case Western Reserve University Corporate Governance • Assistant Professor, Department of Code of Conduct Economics, Ohio State University Information Security Information of Board of Directors and Supervisors are • Associate Professor, Professor and Department Chair of Economics, Risk Management listed in the following table: National Taiwan University Regulatory Compliance • Dean of School of Management at DAI-HE Responsible Responsible Title Name Education and Experience Current Positions National Central University • Independent Director of SinoPac Holdings Partnership Partnership Investment • Professor and Director of Graduate • Independent Director of SinoPac • Chairman and Group CEO of Pegatron Corp. Institute of Industrial Economics at Customer Service Customer Service • Master degree in Computer and Director Co., Ltd. Securities Corp. • Director of Kinsus Interconnect Technology National Central University • Independent Director of Asia Cement Corp. Sustainable Sustainable Communication Engineering, Corp. Rep. : S., Chi • Visiting Professor of Freie Supply Chain Supply Chain National Taipei University of • Director of ASRock Incorporation Universität Berlin, FU Berlin Technology Sustainable Sustainable Chairman T.H. Tung • Director of AzureWave Technologies, Inc. • Deputy Minister of Council for Environment Environment • Honorary PH.D in Engineering, • Director of FuYang Technology Corp. Economic Planning and National Taipei University of • Chairman of Lumens Digital Optics Inc. Development, Executive Yuan Low Carbon & Energy Low Carbon & Energy Technology • Chairman of Pegavision Corp. • Chief Negotiator of Taiwan's Greenhouse Gas Greenhouse Gas • Vice Chairman of Asustek • Director of Casetek Holdings Limited (CAYMAN) accession to General Agreement Sustainable Design Sustainable Design on Trade in Services (GATS) • Deputy Chairman and Deputy Group CEO • Deputy chairman of Asia-Paci c Environmental Environmental • Master degree in electrical Protection Protection of PEGATRON Corp. Economic Cooperation, APEC Deputy Jason engineering, University of Southern • Chairman of Casetek Holdings • Premier of Taiwan Academy of Joyful Work Joyful Work California Chairman Cheng Limited(CAYMAN) Banking and Finance Employment Employment • President and CEO of PEGATRON Corp. • Chairman of FuYang Technology Corp. • Chairman of Taiwan Stock Relationship Relationship • Deputy General Manager of Asustek • Chairman of AzureWave Technologies, Inc. Exchange Attracting & Attracting & • Director of Alcor Micro Corp. • Minister without Portfolio of Nurturing Talent Nurturing Talent Executive Yuan • Bachelor degree in Industrial and Occupational Occupational • President and CEO of Pegatron Corp. HONG-YE Business Management, Tatung Health & Safety Health & Safety Director S.J. Liao • Supervisor of FuYang Technology Corp. • Master degree in Mass Institute of Technology Investment Employee Care Employee Care Director Communication, New York Institute • Chief Operating O cer of Co., Ltd. Rep. : of Technology (NYIT) Social Care Social Care PEGATRON Corp. E.L. Tung Social Welfare Social Welfare • Senior Vice President of Unihan Corp. • Director of Polytronic Technology Corp. Community Community • B.S., Statistics, National Chengchi • Independent Director of Raydium Involvement Involvement • BBA, National Taiwan University Indepen- University Semiconductor Corp. Appendix-Index Appendix-Index • MBA, University of • Director of Yangtze Associates dent C.B. Chang • Deputy General Manager of China • Independent Director of STANDARD GRI Content index GRI Content Index Wisconsin-Madison • Independent Director of Ardentec Director Development Industrial Bank FOODS CORPORATION • Vice President, Citibank, N.A.Taipei • Manager of Far Eastern Textile Ltd. United Nations United Nations Director C.I. Chia Corporation Branch Global Compact Global Compact • Supervisor of Airiti Inc. • President, Individual Financial • Electrical Engineering, National Indepen- • President & GM of Havix Electronics Co., Ltd. UN Sustainability UN Sustainability Services Group, Bank SinoPac Taipei Institute of Technology • Independent Director of Kinsus Development Goals Development Goals dent C.P. Hwang • President & GM of Havix Electronics Interconnect Technology Corp. Statement Statement Director Co., Ltd. 16 • Provincial Keelung Senior High School 2. Audit Committee • Group President of Landis Hotels and Resorts Editorial Principles Editorial Principles • Country Manager of American Express Inc. PEGATRON’s Audit Committee was established in year 2013 and is composed of the entire A Word from A Word from Taiwan number of independent directors in accordance with law. The Board has established the CEO the CEO • General Manager of the Grand Hotel Indepen- • Chairman of Taiwan Visitors Association “Audit Committee Charter” for compliance. The main function of the Audit Committee is Identi cation & Identi cation & • Independent Director of dent C.S. Yen • Director of Paci c Asia Travel Association (PATA) to supervise fair expression of Pegatron’s nancial reports, the hiring (and dismissal) Communication Communication Shinkong Insurance Co., Ltd. Director • Deputy chairman of Young Presidents’ independence and performance of certi cated public accountants, the e ective Social Responsibility Organization (YPO) Asia Conference Commitment • Chairman for Asia Paci c region of The implementation of the internal control system, compliance with relevant laws and Stakeholder Leading Hotels of The World regulations and management of existing or potential risks. Communication PEGATRON’s Audit Committee shall convene at least once quarterly and may invite Material Issue Identi cation certi ed public accountants, internal audit o cers and managers of nance and Sustainability accounting to join. Development Goals List of Major Shareholder: 4 meetings of the audit committee were held in 2019. The average attendance rate was 100%. Company Pro le Company Pro le As of 08/06/2019 About PEGATRON Shareholder's Name Shareholding Percentage Financial Performance 3. Remuneration Committee Globalization Asustek Computer Inc. 17.18% PEGATRON’s Remuneration Committee was established in year 2011 and is composed of Arrangement (Representative: Jonney Shih) Award List the 3 independent directors. The Board has established “Remuneration Committee Silchester International Investors International Charter” for compliance in accordance with the law. Sustainable Sustainable 4.41% Management Management Value Equity Trust The functions of the Committee are: Corporate Governance T.H. Tung 3.61% (1) Professionally and objectively evaluate the policy and system for compensation of Code of Conduct Jonney Shih 2.57% the directors, supervisors, and managerial o cers of this Corporation. Information Security (2) Submit recommendations to the board of directors for its reference in decision Silchester International Investors International Risk Management 2.27% making. Value Equity Group Trust Regulatory Compliance The Remuneration Committee shall convene at least twice yearly. Responsible Responsible Ted Hsu 2.16% Partnership Partnership 4 meetings of the remuneration committee were held in 2019. The average attendance NAN SHAN LIFE INSURANCE CO., LTD 2.07% rate was 91.7%. Customer Service Customer Service Silchester International Investors International Sustainable Sustainable 1.51% Supply Chain Supply Chain Value Equity Taxable Trust Sustainable Sustainable Cathay United Bank in Custody for Expert Union Environment Environment Limited Investment account 1.47% Low Carbon & Energy Low Carbon & Energy Morgan Stanley & Co. International Plc 1.41% Greenhouse Gas Greenhouse Gas Sustainable Design Sustainable Design Code of Conduct Environmental Environmental Protection Protection Integrity is our top priority to establish a good business culture. Joyful Work Joyful Work Board and Subsidiary Committees Employment Employment Relationship Relationship By complying with Taiwan Company Act, Securities and Exchange Act and other related The importance of business ethics and corporate responsibility is more than before, a Attracting & Attracting & regulations, Pegatron’s Board has set up two subsidiary committees: Audit Committee and sustainable corporate should earn the reliability and respect from all kinds of consumers, Nurturing Talent Nurturing Talent Remuneration Committee in order to strengthen the powers of the board of directors, its partners and the public. Code of Business Ethics of PEGATRON can re ect our core Occupational Occupational value, and it is the basic discipline for us. To improve the management of business Health & Safety Health & Safety protect the rights and interests of shareholders and implement Corporate Governance. integrity, relevant departments are assigned to establish the Corporate Ethical Employee Care Employee Care 1. Board Meeting Management Policy and the prevention system against corruption and malfeasance. The Social Care Social Care PEGATRON’s Board includes professionals from industries, nancial and other professional implementation results and compliance of the policy are reported to the Board of Social Welfare Social Welfare elds. The Board consists of 11 directors, and 3 of them are independent directors. To Directors by designated personnel. Corporate Ethical Management Policy is clearly stated Community Community Involvement Involvement comply with Securities and Exchange Act, PEGATRON has established “Rules of Procedure in the internal policy and external documents. Board of Directors and management team Appendix-Index Appendix-Index for Board of Directors Meetings” for compliance. are fully committed to implement such policy rigorously and thoroughly in internal GRI Content index GRI Content Index The Board performs its authorities and duties in accordance with related laws and rules to management and external business dealings. United Nations United Nations establish internal management regulations for the supervision of management Global Compact Global Compact performance and the determination of major issues in order to maximize shareholders’ From the management level to employees, we commit to abide by business ethics and UN Sustainability UN Sustainability equity and ful ll loyal duties. con dentiality requirements. We not only perform them internally, but also promote Development Goals Development Goals them to our supply chain. Prior to any business engagement, the Company checks the Statement Statement 7 meetings of the Board of Directors were held in 2019. The average attendance rate was 96.1%.
partner’s legality and its records of ethical conduct. All long term suppliers are required to sign “Statement of Integrity” which stipulated the contractual liability for violation of ethical conduct, to build a good business environment together. The ratio of the suppliers that undersigned the commitment till the end of 2019 was about 75%. Integrity is our top priority to establish a good business culture.
The importance of business ethics and corporate responsibility is more than before, a sustainable corporate should earn the reliability and respect from all kinds of consumers, its partners and the public. Code of Business Ethics of PEGATRON can re ect our core value, and it is the basic discipline for us. To improve the management of business integrity, relevant departments are assigned to establish the Corporate Ethical Management Policy and the prevention system against corruption and malfeasance. The implementation results and compliance of the policy are reported to the Board of Directors by designated personnel. Corporate Ethical Management Policy is clearly stated in the internal policy and external documents. Board of Directors and management team are fully committed to implement such policy rigorously and thoroughly in internal management and external business dealings.
From the management level to employees, we commit to abide by business ethics and con dentiality requirements. We not only perform them internally, but also promote them to our supply chain. Prior to any business engagement, the Company checks the
17 partner’s legality and its records of ethical conduct. All long term suppliers are required to annual audit plan based on the results of risk assessments and escalates to the Board of Editorial Principles Editorial Principles sign “Statement of Integrity” which stipulated the contractual liability for violation of Directors with audit reports. A Word from A Word from ethical conduct, to build a good business environment together. The ratio of the suppliers the CEO the CEO that undersigned the commitment till the end of 2019 was about 75%. We establish operational procedures for handling reported cases and protect the Identi cation & Identi cation & whistleblowers. The content of the reported cases are handled in con dentiality to Communication Communication avoid any unfair treatment or retaliation. In 2015, there was a case regarding leaking Social Responsibility Commitment the company’s trade secrets, which violated the work rule and business code of Stakeholder PEGATRON commits to conduct business ethics and sticks to the rule of integrity. conduct and was handled base on our internal norms for punishment and litigation. Communication Anyone should abide by the highest standard of probity. Any kind of corruption, Such case was still under litigation in 2019. We did not have any other similar case Material Issue in 2019 except for such case. Identi cation blackmailing or embezzling public funds is strictly prohibited. All sta s in their Sustainability work should abide by the principles as follows: Development Goals 1. Everyone in the company should be honest to his or her customers and vendors Company Pro le Company Pro le 2. It is strictly prohibited for any sta to receive or claim directly or indirectly for About PEGATRON gifts, favorable dealings or other special treatments by the abuse of one’s Financial Performance working power. Globalization Arrangement 3. It is strictly prohibited for any sta to use the power of position to receive or Information Security Award List claim directly or indirectly unreasonable interests or other corrupt practices. Sustainable Sustainable 4. It is strictly prohibited for any sta to extort property by the abuse of one’s Management Management Privacy and Intellectual property are highly valued and managed working power. Corporate Governance with information security control. Code of Conduct 5. It is strictly prohibited for any unauthorized use of the name of the company other than business related matters. Information Security As an excellent partner in green design, manufacturing and service for our customers, Risk Management 6. It is strictly prohibited to embezzle the company’s property for personal interests. protect customers’ privacy and intellectual property is regarded as a very important duty Regulatory Compliance in PEGATRON. To show our determination of information protection for the products, Responsible Responsible assets and data of customers, the CEO has approved the “Con dentiality Policy” in 2010. Partnership Partnership Under the control of the policy and relevant processes, all information about the products Customer Service Customer Service PEGATRON’s Board of Directors approved “Ethical Corporate Management Best and data of customers are con dential. All employees have the responsibility of not Sustainable Sustainable Practice Principles” and “Codes of Ethical Conduct” on November, 2014. We disclosing, not collecting and not using the information for non-business scope. By Supply Chain Supply Chain stipulated the preventive measures of unethical conduct, penalties and grievance Sustainable Sustainable protecting their assets and providing a complete information security environment, we procedure according to our “Business Ethics and Code of Conduct” and “Business Environment Environment earn customers’ trust. Low Carbon & Energy Low Carbon & Energy Gifts and Entertainment Policy”. All employees shall follow these guiding principles of integrity, honest, con dentiality and respect. In addition, we also set up the Greenhouse Gas Greenhouse Gas To meet customer requirements of information security, protect customers’ privacy and “Business Ethics advocacy website “and hold trainings on corporate ethics Sustainable Design Sustainable Design intellectual property, PEGATRON has established an enterprise level security information management each year to strengthen the ethics concepts of our employees. Environmental Environmental taskforce for governing the data to reduce the risk level and meet our customer needs. We Protection Protection “Ethical Corporate Management Best Practice Principles” and “Codes of Ethical rigorously review data, business application, operation system, intranet, extranet, physical Joyful Work Joyful Work Conduct” were published on the Company website: environment, procedures & policy as well as entirely management of creating an account, Employment Employment http://www.pegatroncorp.com/investorRelation/majorInternalPolicies/lang/en_US Relationship Relationship requiring a password, applying and setting the access authority, applying an ID, limiting Attracting & Attracting & log in authority, recording audit records and getting multi-certi cation. Nurturing Talent Nurturing Talent In order to progress towards sustainability, PEGATRON not only implements the relevant actions internally, but also joins “Responsible Business Alliance (RBA)” and Occupational Occupational For the construction and building protection of information assets, we control the Health & Safety Health & Safety complies with the “RBA Code of Conduct”. We also formulate “Business Ethics Code security in all entrances strictly and implement the Disaster Recovery System. Also, we Employee Care Employee Care of Conduct” as an internal management procedure to request all employees to implement the structure of High-Availability System to ensure information continuity. We obey. PEGATRON sets forth penalties for violation of code of conduct and the Social Care Social Care use encryption system to protect and control the access authority for con dential and Social Welfare Social Welfare grievance mailbox for reporting of any violation. Audit O ce handles all reported sensitive documents, and also adopt encryption and private communication protocol to Community Community cases. For the potential con ict of interests, we establish measures to prevent ensure the con dentiality of important data. Involvement Involvement con ict of interests and appropriate reporting channels to re ect any potential risk. Appendix-Index Appendix-Index In addition to periodical backup, we implement remote backup mechanism to ensure GRI Content index GRI Content Index PEGATRON regularly conducts risk assessments related with nancial and operations for the completeness of data preservation. To enhance the awareness of security for all United Nations United Nations all important operation sites, and the major risks identi ed are sales and procurement. Global Compact Global Compact relevant personnel, PEGATRON not only propagates information security and We perform the control activities according to the results of risk assessments. For the UN Sustainability UN Sustainability con dentiality periodically, but also performs relevant customized training programs higher risk of operational activities, we establish an e ective accounting system and Development Goals Development Goals for di erent personnel according to their operations, include security operating Statement Statement internal control system, and review them at any time. Audit O ce also develops the
concept introduction, standard operating procedure introduction, crime prevention and the compliance with security policy. Besides, employees whose operations are related to con dential information need to sign con dentiality agreements and have the obligation of accepting information security audits.
To ensure the e ectiveness of information security management system, HQ and Maintek have gotten ISO 27001 Certi cations, and we also implement the information security management in the PEGATRON Group. Not only has the external audit, the Company also conducted internal audits annually to meet customer’s requirement. Through continuous improvement and reduction of threaten posed by information security incidents and impacts, PEGATRON has no breach of each customer’s privacy in 2019. Privacy and Intellectual property are highly valued and managed with information security control.
As an excellent partner in green design, manufacturing and service for our customers, protect customers’ privacy and intellectual property is regarded as a very important duty in PEGATRON. To show our determination of information protection for the products, assets and data of customers, the CEO has approved the “Con dentiality Policy” in 2010. Under the control of the policy and relevant processes, all information about the products and data of customers are con dential. All employees have the responsibility of not disclosing, not collecting and not using the information for non-business scope. By protecting their assets and providing a complete information security environment, we earn customers’ trust.
To meet customer requirements of information security, protect customers’ privacy and intellectual property, PEGATRON has established an enterprise level security information taskforce for governing the data to reduce the risk level and meet our customer needs. We rigorously review data, business application, operation system, intranet, extranet, physical environment, procedures & policy as well as entirely management of creating an account, requiring a password, applying and setting the access authority, applying an ID, limiting log in authority, recording audit records and getting multi-certi cation.
For the construction and building protection of information assets, we control the security in all entrances strictly and implement the Disaster Recovery System. Also, we implement the structure of High-Availability System to ensure information continuity. We use encryption system to protect and control the access authority for con dential and sensitive documents, and also adopt encryption and private communication protocol to ensure the con dentiality of important data.
In addition to periodical backup, we implement remote backup mechanism to ensure the completeness of data preservation. To enhance the awareness of security for all relevant personnel, PEGATRON not only propagates information security and con dentiality periodically, but also performs relevant customized training programs for di erent personnel according to their operations, include security operating
18 concept introduction, standard operating procedure introduction, crime prevention Editorial Principles Editorial Principles and the compliance with security policy. Besides, employees whose operations are Risk Management A Word from A Word from related to con dential information need to sign con dentiality agreements and have the CEO the CEO the obligation of accepting information security audits. Identi cation & Identi cation & Identify and control the risks, then transform the risks to Communication Communication To ensure the e ectiveness of information security management system, HQ and Maintek opportunities. Social Responsibility Commitment have gotten ISO 27001 Certi cations, and we also implement the information security Stakeholder management in the PEGATRON Group. Not only has the external audit, the Company also In order to achieve the target of sustainable development and e ciently reduce the Communication conducted internal audits annually to meet customer’s requirement. Through continuous risks of business continuity, we identify and control several kinds of risks during Material Issue improvement and reduction of threaten posed by information security incidents and corporate operations. For being towards sustainability, risk management is not only Identi cation impacts, PEGATRON has no breach of each customer’s privacy in 2019. taken into our daily operations, but also regarded as one of the determinant factors in Sustainability corporate’s governance. Development Goals Company Pro le Company Pro le About PEGATRON Financial Performance The identi cation and management of various risks are showed as below: Globalization Arrangement Award List Sustainable Sustainable Management Management Risk of Getting Improper Advantages Based on Risk of Data Leakage or being Infringed Risk of Material Shortage • Account management, access by privilege, multiple • Second sources are taken into account for all key components Corporate Governance Position or Company Internal Data • Integrity policy and bribery prevention programs certi cations and audits Code of Conduct • Specifying the default liability against the integrity principle in • Antivirus protection and encryption process Risk of Workforce Shortage • Automatic production for the enhancement of e ciency Information Security the contract Risk of Interruption of Information Service • Allocation of manpower between manufacturing sites to raise • Continuously promote the integrity policy and conduct the trainings Risk Management • Backup, remote backup and disaster recovery the exibility of workforce • Accounting system, internal control and auditing system Regulatory Compliance Responsible Responsible Partnership Partnership Information Customer Service Customer Service Security Sustainable Sustainable Production Governance Security Supply Chain Supply Chain Risk of Products with Restricted Risk of Abusing Child labor Sustainable Sustainable Substances • Identity veri cation and facial recognition system Environment Environment • Technical standards for the forbiddance of • Remediation of Child labor Low Carbon & Energy Low Carbon & Energy hazardous substances Risk of Forced Labor Greenhouse Gas Greenhouse Gas • Material Management e-platform Growth • Material approvals and testing • The training of avoidance of forced labor for recruitment Sustainable Design Sustainable Design • Internal & External Audits personnel and the managers Environmental Environmental • Interview with new employees Protection Protection Emissions of Hazardous Substances Environ- • Anonymous grievance channels • Elimination of substances with high contamination during the design phase Joyful Work Joyful Work mental Labor • Reduction of the use of substances in manufacturing phase to reduce the wastes Protection Rights Risk of Harassment or Abuse in Workplace Employment Employment • The policy and procedure of grievance and investigation Relationship Relationship Mutualism Equality • Protection of whistleblowers and the ones under investigation Attracting & Attracting & Risk of Environmental Impact due to Activities • Policy of no retaliation Nurturing Talent Nurturing Talent of Manufacturing Sites Community Responsible Occupational Occupational • Obtain the Environmental Permits Impact Health & Safety Health & Safety Sourcing Risk of Unethical Mineral Sourcing • Regular Monitoring of emissions to ensure the compliance • Due diligence Employee Care Employee Care • Appropriately maintain the pollution control equipment Climate • Encourage the smelters in the supply chain to participate in RMAP Social Care Social Care Workplace (Responsible Minerals Assurance Process) Risk of Community Development Impact due Change Equality Social Welfare Social Welfare to Operations Risk of Non-conformance in Supply Chain Community Community • Public communication channels for stakeholders • Drive suppliers to commit to abide by the RBA Code of Conduct Involvement Involvement • Activities and communications with local communities • Pre-selection of new suppliers and annual CSR audits for high-risk suppliers Appendix-Index Appendix-Index GRI Content index GRI Content Index Risk of Discrimination in Risk of Inequality in Employment on Risk of Business Interruption due to Risk of Energy Shortage United Nations United Nations • Practice the energy management measures Recruitment Cultivation, Development and Promotion Global Compact Global Compact Extreme Climates • Anti-discrimination training for recruiters • Multiple learning resources • Emergency Response Plan • Improve the facilities and optimize the processes • Grievance hotline directly to an • Direct communication mechanism to management levels UN Sustainability UN Sustainability • Re-allocation plan of the available resources among to enhance production e ciency objective department • Standardized appraisal index Development Goals Development Goals sites to support our continuous manufacturing • Implement energy management system • Multiple grievance or suggestion channels Statement Statement 19
Editorial Principles Editorial Principles Regulatory Compliance A Word from A Word from the CEO the CEO Identi cation & Identi cation & The basic principle is to comply with the laws and strictly abide by Communication Communication them inside out. Social Responsibility Commitment Stakeholder Since inception, PEGATRON Group complies with relevant laws and regulations and Communication continually pays attention on any policy and law that could have signi cant impact on Material Issue our company's nance and business. Our legal team noti es relevant departments the Identi cation latest developments of laws and regulations and assists our company to comply with Sustainability Development Goals such laws and regulations. It not only reduces the direct nancial risks, but also avoids Company Pro le Company Pro le the indirect business reputation risks. After receiving the latest laws and regulations, About PEGATRON relevant units will set the management procedures and process audits to ensure Financial Performance compliance of such laws and regulations accordingly to reduce illegal risks. Our legal Globalization team also holds the relevant trainings, and we not only expect colleagues to follow the Arrangement regulations, but also avoid any operation led to breach. There is no signi cant Award List non-compliance with laws or regulations in 2019. Sustainable Sustainable Management Management Corporate Governance Code of Conduct Information Security Risk Management Regulatory Compliance Responsible Responsible Partnership Partnership Customer Service Customer Service Sustainable Sustainable Supply Chain Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas Sustainable Design Sustainable Design Environmental Environmental Protection Protection Joyful Work Joyful Work Employment Employment Relationship Relationship Attracting & Attracting & Nurturing Talent Nurturing Talent Occupational Occupational Health & Safety Health & Safety Employee Care Employee Care Social Care Social Care Social Welfare Social Welfare Community Community Involvement Involvement Appendix-Index Appendix-Index GRI Content index GRI Content Index United Nations United Nations Global Compact Global Compact UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement Navigate Responsible Partnership the The function of partnership is to act as a connection role in Future entire value chain to bene t sustainable development. 21 Our R & D teams constantly engage in the development and improvement of green Editorial Principles Editorial Principles Customer Service materials, including the management of hazardous substances, the research of recyclable A Word from A Word from and biodegradable materials, and the product reliability analysis. We also do classi ed the CEO the CEO research of metals, plastics, coatings, inks and other raw materials, with the best costs for Identi cation & Identi cation & Improve the service process and accumulate core techniques to customers to develop the products that meet the environmental objectives. For the Communication Communication enhance the satisfaction. development of clean production process, we focus on meeting customers’ green Social Responsibility Commitment product speci cations and carbon reduction requirements as the core elements. The Stakeholder The business strategy of PEGATRON is to be an expert in design and manufacturing as well short-term goal is to lean the current processes and the long-term goal is to simplify them Communication as to improve the service process for global arrangement to meet customers’ needs and reduce equipment used when developing the green materials, and to nd out a new Material Issue thoroughly. By providing customers with best services, they can focus on brand and clean production way. PEGATRON has a very prospective research ability on the ultimate Identi cation channel operations and we can earn customer satisfaction. “Navigate the Future” is goal to be non-toxic, pollution-free, environmental friendly, energy saving and carbon Sustainability PEGATRON Group’s business philosophy. We navigate our customers to obtain business reduction to achieve the responsibility of a corporate citizen. Development Goals opportunities ahead of the market with our innovative technology and design for service. Company Pro le Company Pro le We provide a brand new integrated service from designing, manufacturing to after-sales With customers’ global layouts, our overseas customer service teams are located around About PEGATRON service. With a complete service experience, we can quickly and e ciently ful ll our the world to meet customers’ needs. Therefore, we are able to provide the most Financial Performance customers’ expectations. immediate and convenient services, as well as o er the most comprehensive support to Globalization customers around the world with our well-established service network composed of tens Arrangement Our research and development teams whole heartedly serve our customers from the rst of service sites on all continents. Furthermore, we provide our customers with customized Award List stage of product development. After the in-depth understanding of customer needs and Sustainable Sustainable service planning, immediate and e ective technical support, experienced repair teams, expectations for new products, we begin with the viewpoints of users and combine with Management Management professional supply chain management, friendly IT systems, worldwide service sites, and the aesthetics and innovations to develop new products. We completely state and explain Corporate Governance the greatest enthusiasm with a superior commitment. Code of Conduct to customers from di erent levels for positioning of products, special materials and style options, parts selection, product functions, appearances and packaging, production Information Security PEGATRON not only has high expectation and responsibility for our service quality, but conditions, and even the challenges that we may face in the manufacturing processes or Risk Management also pays great attention to the voice of consumers. Through an QBR (Quarterly Business impacts on the environment. Meanwhile, we also pay attention to test ows. We not only Regulatory Compliance Review) meeting, we can listen closely and directly to customer’s suggestions and pursue the most advanced testing technologies, but also invest in professional testing Responsible Responsible concerns. According to the QBR results and the opportunities for improvement gured Partnership Partnership equipment. The only purpose is to design perfect products of maximizing customer’s out by customers, we xed those issues through internal improvements and professional Customer Service interests to be in line with market expectations. training programs within the timeframe set to reduce defects to pursue 100% customer Sustainable Supply Chain To improve product value and accumulate the core technology, PEGATRON commits to train satisfaction. Sustainable Sustainable innovative talents and develops diversi ed product applications. We got the total number up Environment Environment to 223 global patents certi ed in 2019 to create maximum value for customers. Besides, we actively investigate customers’ satisfactions by customer surveys about the Low Carbon & Energy Low Carbon & Energy aspects of our products, services, quality, delivery, technical support, business responses Greenhouse Gas Greenhouse Gas and hazardous substance free management. We can understand the overall management Sustainable Design Sustainable Design 140 129 and operational performance from customers’ points of views to adjust the direction and Environmental Environmental 120 management with in-depth reviewing, and propose the speci c strategies and programs Protection Protection for improvement. Joyful Work Joyful Work 100 Employment Employment Relationship Relationship 80 Based on the statistical results of customer satisfaction surveys, the annual average Attracting & Attracting & customer satisfaction score of PEGATRON in 2019 was 83.1. We follow the spirit of Nurturing Talent Nurturing Talent 60 46 continuous improvement to perform improvement projects for de ciency. In 2019, the Occupational Occupational 40 main type of customer complaints was service quality, and all issues are closed. When Health & Safety Health & Safety 29 receiving the customer complaint, our business group/unit or factory immediately Employee Care Employee Care 20 10 convene meetings to review and conduct the improvement as well as track the status of Social Care Social Care 2 2 2 2 1 0 the improvements. At the same time, we request the customer complaint should be Social Welfare Social Welfare Taiwan China United Japan France Germany Europe United Korea xed as soon as possible. All the complaints of 2019 are closed. Community Community States Kingdom Involvement Involvement Appendix-Index Appendix-Index GRI Content index GRI Content Index United Nations United Nations Global Compact Global Compact UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement 22 Customer Satisfaction Results for Various Products: Editorial Principles Editorial Principles Sustainable Supply Chain A Word from A Word from the CEO the CEO Product 5 Identi cation & Identi cation & Through communication, monitoring, cooperation and growth Communication Communication Environmental 4 Server Social Responsibility Quality Quality Industrial PC together to build a sustainable supply chain with our partners. Commitment 3 (including HSF) Service Stakeholder 2 Communication Network Devices Supply Chain Status Material Issue 1 Consumer █ Identi cation Electronics Sustainability 0 As an enterprise of information, communication and consumer electronics technology Development Goals Automotive industry, PEGATRON provides the service mainly on research, design and manufacturing. Company Pro le Company Pro le Account Ful llment Electronics Our supply chain consists of raw material suppliers, equipment suppliers, waste disposal About PEGATRON management System Product vendors, material transportation vendors, service providers (such as security, food, Financial Performance cleaning), human resource agencies and so on. The main raw material suppliers of Globalization PEGATRON are electronic components and mechanical parts suppliers. We design and Arrangement assemble nished goods according to customer demands with components provided by Award List RMA service Technical support our suppliers, and then deliver them to the designated sale territories. More than 3,000 Sustainable Sustainable suppliers cooperated with PEGATRON in 2019, and most of them came from Taiwan, Management Management China, United States, Japan and South Korea. Since the main production base is in China, Corporate Governance 90% of our suppliers are located in Asia. The supplier type includes manufacturers, Code of Conduct authorized agents and so on. Their industry types focus on capital-intensive and Information Security technology-intensive. PEGATRON promotes local purchase continuously. It not only Risk Management reduces the transportation costs and responds to carbon reduction e ort, but also Regulatory Compliance Customer Overall Satisfaction in 2015-2019: enhances local employment opportunities. Before we cooperate with suppliers, we not Responsible Responsible only consider on their technology, quality, delivery and cost, but also request them to Partnership Partnership Overall Satisfaction (%) Customer Service commit to environmental protection, occupational safety and health, and labor rights so Sustainable 95% as to ful ll our corporate social responsibility. Supply Chain 91.3% Sustainable Sustainable PEGATRON plays an important role in the electronics supply chain. Therefore, the Environment Environment 90% management of supply chain is one of the key issues to us. According to the customer Low Carbon & Energy Low Carbon & Energy requirements, legal requirements and international trends, we have written internal Greenhouse Gas Greenhouse Gas 85.2% procedures to monitor the performances of suppliers, including advocacies, Sustainable Design Sustainable Design 85% 83.5% requirements, audits and evaluations. Besides, we hold several training programs to Environmental Environmental 82.3% 83.1% Protection Protection introduce the concept and develop ability of sustainability into the entire electronics Joyful Work Joyful Work 80% supply chain. In addition, we also manage our vertical integration a liates and Employment Employment subsidiaries through the supply chain management process to enhance the sustainable Relationship Relationship development of electronic supply chain. Attracting & Attracting & 75% Nurturing Talent Nurturing Talent 2015 2016 2017 2018 2019 Occupational Occupational Supplier Risk Assessment Health & Safety Health & Safety Our priority is to reach the highest satisfaction of customers and business partners. By Employee Care Employee Care implementing the management systems of corporate social responsibility (PureCSR) To make sure that suppliers meet our requirements of Quality, Cost, Delivery, Service, Social Care Social Care and quality with hazardous substance free (PureGMS), we continue to improve internal Technology and Corporate Social Responsibility, they have to participate in PEGATRON’s Social Welfare Social Welfare processes and build a good corporate image to meet customers’ requirements. We QBR (Quarterly Business Review) regularly. Suppliers with outstanding performances Community Community would be the long-term partners and have chances become our Annual Excellent Involvement Involvement even treat exceeding customer expectations for better customer service management as our target. Suppliers. Suppliers with bad performances will be regarded as unquali ed suppliers. If Appendix-Index Appendix-Index the nonconformities are signi cant, PEGATRON will terminate the contractual GRI Content index GRI Content Index relationships with them when necessary. At the same time, Procurement Units regularly United Nations United Nations Global Compact Global Compact review the nancial statements and conduct the nancial risk assessments of suppliers to UN Sustainability UN Sustainability ensure that they meet the low risk level of nancial standard. Development Goals Development Goals Statement Statement 23 Supply Chain Management: Editorial Principles Editorial Principles SRM (Supplier Relationship Management System) is the platform that PEGATRON A Word from A Word from communicate with our suppliers. We announce and update the latest news or the CEO the CEO requirements on this system to let our suppliers know. The annual supplier confer- Identi cation & Identi cation & ence information is also uploaded to SRM. Functions related with PureCSR issues Communication Communication provided by SRM system include: Social Responsibility Commitment • Hazardous Substance Management - Suppliers can upload documents include Stakeholder Contract and CoC Communication certi cates of non-hazardous substances, composition tables or SDSs (safety (New supplier) Material Issue data sheets), and third party test reports. Identi cation Sustainability • Con ict Minerals Survey System – We follow Con ict Minerals Reporting Development Goals Template (CMRT) and invite our suppliers to upload their Con ict Minerals Company Pro le Company Pro le Report (CMR) into SRM system. Supply Chain About PEGATRON Management Financial Performance • PureCSR Supplier Management – We announced CSR requirements and standards Globalization on SRM system so that suppliers can upload them to follow up. Regulation Arrangement and PureGMS & PureCSR Audit Award List • Business Ethics Management – The complaint mailbox for business ethics and Compliance Sustainable Sustainable (New supplier) (Existing supplier) Management Management statement of integrity are available for suppliers to download on SRM system. Corporate Governance • PureGMS Supplier Management – Suppliers can regularly update their ISO certi cates Code of Conduct and other reports based on related requirements (e.g. China Compulsory Certi cation Information Security Reports, Finished Product Inspection Reports, and so no). Risk Management Regulatory Compliance New Suppliers Selection Responsible Responsible Partnership Partnership Based on PEGATRON’s requirements in internal procedures to audit new suppliers, we Customer Service Audit & Communication verify the compliance on their HSF management system, quality management system & Sustainable █ process control standard. They shall be certi ed with one management system among Supply Chain PEGATRON obeys its supplier quality & CSR management procedures to ensure the ISO 9001, IATF 16949 or TL 9000. Except for meeting the standards of quality and green Sustainable Sustainable management system, new suppliers shall also be in accordance with PEGATRON PureCSR Environment Environment quality of components and their on time delivery. Besides, we also issue the Supplier policy. They are not only requested to sign the PEGATRON Supplier Responsible Business Low Carbon & Energy Low Carbon & Energy Consulting Standard. With this standard, we can help suppliers to set up product HSF Alliance Code of Conduct Agreement, but also evaluated with their compliance on Greenhouse Gas Greenhouse Gas system, quality system & process control standard, so as to improve suppliers’ product governance, environmental protection and social aspects based on the violation records Sustainable Design Sustainable Design environment quality, delivery quality and process capabilities. Meanwhile, we ask new revealed in public. Furthermore, the contracts between PEGATRON and suppliers also Environmental Environmental suppliers to sign PEGATRON Supplier Responsible Business Alliance Code of Conduct Protection Protection Agreement and commit their operations are in accordance with PureCSR policy and de ne that the suppliers shall comply with all relevant laws and the RBA Code of Conduct. Joyful Work Joyful Work requirements. If there is any severe violation, the business relationship could be terminated by Employment Employment PEGATRON. Relationship Relationship Compare 2019 with 2018, the ratio of the suppliers that undersigned PEGATRON Supplier Attracting & Attracting & Responsible Business Alliance Code of Conduct Agreement was raised from 85.5% to In 2019, there were 426 new suppliers involved in the PureCSR new supplier evaluation Nurturing Talent Nurturing Talent 93%. Also, there were 1,518 times of evaluation of supplier environmental performance process, and the new suppliers are listed in the next annual supplier audit scope if the Occupational Occupational conducted in 2019. result was middle or high risk according to the result of new supplier questionnaire. For Health & Safety Health & Safety the result of supplier evaluation process, there were 153 new suppliers responded that Employee Care Employee Care they have 1SO 14001 and/or OHSAS 18001, and 23 new suppliers has submitted the RBA Social Care Social Care online SAQ or completed RBA VAP or RBA non VAP. Social Welfare Social Welfare Community Community Involvement Involvement Appendix-Index Appendix-Index GRI Content index GRI Content Index United Nations United Nations Global Compact Global Compact UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement 24 Annual Supplier Audit and West China in year 2019. There were 762 suppliers and 1,203 people in total joined the Editorial Principles Editorial Principles conferences. The main topics of the conference were green technology standards and PEGATRON has implemented supplier audits annually in accordance with internal A Word from A Word from related notes of supplier management. Our corporate social responsibility and con ict the CEO the CEO procedures, to ensure they comply with PureGMS and PureCSR requirements. Any minerals requirements were also introduced simultaneously. Through the Supplier Identi cation & Identi cation & supplier does not pass the onsite audit will be asked to improve the non-conformities Conferences, we delivered the concept of sustainable development to suppliers and had Communication Communication within deadline and complete the corrective actions. We classify the results of a two-way communication with them. Social Responsibility unquali ed suppliers and pass them to our Procurement Center as a reference for Commitment supplier management. Stakeholder Communication Material Issue Identi cation Supplier Management Process: Sustainability 1. PEGATRON Supplier Responsible Development Goals Business Alliance Code of Company Pro le Company Pro le Conduct Agreement 2. Requirement and About PEGATRON PureGMS & Regulation Compliance Financial Performance PureCSR Audit 3. PureGMS & PureCSR Audit Globalization Arrangement Existing supplier New supplier Award List Sustainable Sustainable Management Management Corporate Governance Annual suppler audit Code of Conduct Rejected Pass Information Security Need to be Risk Management Quali ed supplier Regulatory Compliance evaluated supplier Re-Audit Responsible Responsible Pass Through the regular Supplier Conferences, we delivered the concept and communicated with them. Partnership Partnership Customer Service Corrections Sustainable and Supply Chain Preventive actions Sustainable Sustainable Responsible Minerals Environment Environment Rejected █ Low Carbon & Energy Low Carbon & Energy Disquali ed Greenhouse Gas Greenhouse Gas supplier The mining industry in Con ict A ected and High-Risk Areas (CAHRAs), including but not Sustainable Design Sustainable Design limited to Democratic Republic of the Congo (DRC) and adjoining countries, are occupied Environmental Environmental by certain non-governmental organizations or non-governmental military groups which Protection Protection may cause serious social and environmental issues in the region, including armed con ict, Joyful Work Joyful Work theft, extortion, illegal child labor, women captivity, deforestation, and so on. To reduce PEGATRON regularly conducts e-surveys for major suppliers every year to ensure that Employment Employment the violation of human rights, PEGATRON have disclosed the sources of metals to prevent suppliers can meet CSR requirements, including management systems, labor rights, health Relationship Relationship above events from occurring. Attracting & Attracting & and safety, business ethics, product responsibility, greenhouse gas emissions and other Nurturing Talent Nurturing Talent aspects of CSR. The number of major suppliers that were highly concerned in 2019 was 203 As a corporate citizen and one of Responsible Business Alliance (RBA) members, PEGATRON Occupational Occupational and we issued the e-survey questionnaires to all of them. The overall response rate and not only discloses its Responsible Minerals Statement on the company's website, but also Health & Safety Health & Safety approved rate were 96% and 91% respectively. There were 18 suppliers that failed the establishes an internal procedure to conduct the risk management of supply chain. We Employee Care Employee Care audits and all of them are included in tracking progress of their corrective actions have launched con ict minerals investigation project since 2012 according to Organization Social Care Social Care continuously. In addition to e-survey, there were 43 suppliers that included in the on-site for Economic Co-operation and Development (OECD) Due Diligence Guidance. We follow Social Welfare Social Welfare audit project in 2019 and all supplier participated in on-site audits have passed the audits Con ict Minerals Reporting Template (CMRT) and Cobalt Reporting Template (CRT) Community Community performed by PEGATRON’s audit teams. Involvement Involvement founded by Responsible Minerals Initiative (RMI) to establish PEGATRON’s SRM Appendix-Index Appendix-Index Responsible Minerals Survey System and invite our suppliers to disclose the smelter GRI Content index GRI Content Index Supply Chain Promotion information related to their products and upload the reports to the system. PEGATRON United Nations United Nations has extended to the cobalt due diligence investigation project since 2018 and processed Global Compact Global Compact We regularly hold supplier seminars every year to advocate PureGMS & PureCSR policies, the survey in 2019. UN Sustainability UN Sustainability hazardous substance free requirements and supplier management requirements. There Development Goals Development Goals were 6 PEGATRON supplier conferences held in di erent area, including HQ, Central China Statement Statement 25 Con ict Minerals Investigation Process: reaching the goal of sourcing from quali ed smelters/re ners step by step accordingly. Editorial Principles Editorial Principles A Word from A Word from the CEO the CEO Identi cation & Identi cation & Communication Communication PEGATRON CMR Response Rate in the Past 5 Years Social Responsibility Commitment Pegatron_SRM
Stakeholder send the survey mail Response Rate from Supply Chain Communication 100% 97% Material Issue 96% 96% Identi cation 95% Sustainability 92% Development Goals Tier 1 Suppliers Sub suppliers Upstream suppliers 91% Company Pro le Company Pro le 90% About PEGATRON Financial Performance Upload Push 85% Globalization Arrangement Award List 80% 2015 2016 2017 2018 Sustainable Sustainable Upload the CMR 2019 Management Management to SRM portal Rejected Corporate Governance Code of Conduct Review Con ict Minerals Ratio in 2019 Information Security Risk Management 100% 89.7% Regulatory Compliance Passed Responsible Responsible 80% 73.6% Partnership Partnership Customer Service Download CMR Roll up the CM reports into one 60% Sustainable through SRM portal and provide it to customers Supply Chain 40% Sustainable Sustainable 27.7% Environment Environment 20.4% 20% Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas 0% Sustainable Design Sustainable Design PEGATRON Con ict Minerals Management Framework Sn Au W Ta Environmental Environmental Protection Protection PEGATRON respects human rights and keeps concerning this issue, we continue to share Joyful Work Joyful Work our Responsible Minerals Policy and invite our suppliers to conduct due diligence Employment Employment In 2019 investigation of PEGATRON, the ratio of suppliers that claim the materials they Relationship Relationship investigation for the materials of their products to assure the metal sources of Tantalum (Ta), supplied to us contain con ict minerals (by category of con ict minerals) Attracting & Attracting & Tin (Sn), Tungsten (W), Gold (Au) and Cobalt (Co) are not derived from mining in Con ict Nurturing Talent Nurturing Talent A ected and High-Risk Areas (CAHRAs), and endeavor to ful ll the responsibility of a Remark: The calculation of the ratio (%) of con ict minerals = [(total number of suppliers using one mineral Occupational Occupational corporate citizen. We do risk assessments and encourage our suppliers to ask Health & Safety Health & Safety among 3TG) / (total number of suppliers using 3TG)] x100% non-compliant smelters or re neries in their supply chains to join the Responsible Minerals (Tantalum, Tin, Tungsten and Gold are collectively known as 3TG.) Employee Care Employee Care Assurance Process (RMAP) audit. Social Care Social Care Social Welfare Social Welfare In the past 5 years, the survey completion rate grows from 91% in 2015, continually Community Community In recent years, Pegatron cooperates with customers actively to achieve 100% con ict free Involvement Involvement promoted to 97% in 2019 (See the graph). For 2019, total 1,945 suppliers joined the con ict sourcing goal, and also put an e ort into processing the cobalt survey. In the future, we Appendix-Index Appendix-Index minerals survey. Through the result of the analysis, 1,103 suppliers had indicated their will be stricter to ask suppliers to disclose the smelters’ information completely and GRI Content index GRI Content Index products and/or manufacturing processes contained these 4 con ict minerals that had honestly in con ict minerals and cobalt mineral survey. Furthermore, we will continue to United Nations United Nations been provided to Pegatron, including Tin (Sn) has the highest proportion of 89.7%, followed Global Compact Global Compact by gold (Au) 73.6%, Tungsten (W) 27.7% and Tantalum (Ta) 20.4%. In 2019, PEGATRON advocate the con ict minerals and cobalt mineral related requirements in the supplier UN Sustainability UN Sustainability conducted the cobalt survey project, and completion rate is 83%. With the supporting of conferences to reach our purpose that we do not directly or indirectly bene t the armed Development Goals Development Goals suppliers, the responsible minerals used in PEGATRON's products are identi ed and also con ict groups. Statement Statement Navigate Sustainable Environment the The company commits to the implementation of environmental protection Future and mitigation the impacts of climate change. 27 With the evolution of society, the focus of environmental protection is not limited to the energy, energy sources and their stability of supply Editorial Principles Editorial Principles traditional approach of pollution prevention and control. The worldwide resources 【Impact】 A Word from A Word from shortage caused by rapid industrialization, the vast consumption of resources and climate Short-term: Introducing electricity saving program (Actual), the CEO the CEO change cannot be ignored nowadays. As a sustainable corporate, PEGATRON responsibly Implementing Carbon tax/Carbon rights (Actual), Operation Identi cation & Identi cation & faces the global issues including climate change, environmental protection and global cost increasing (Potential) Communication Communication Risk and Impact warming. We issue several procedures and obey them to minimize the use of resources, Medium-term: Introducing electricity saving program (Actual), Social Responsibility Operation cost increasing (Potential) Commitment perform greenhouse gas inventory and energy conservation management in order to Stakeholder reduce the consumption of resources and greenhouse gas emissions. To achieve our Long-term: Using renewable energy (Actual), Operation cost Communication commitment, we disclose our concepts for environmental protection and greenhouse increasing (Potential), Using new energy sources (Potential) Material Issue gas reduction in our PureCSR policy. Identi cation 【Opportunity】 Sustainability As mentioned in our PureCSR policy, we value natural resources preservation, environmental Short-term: Energy usage and conservation of centralized Development Goals protection and pollution prevention, so as to eliminate any impact on the environment. We production equipment Company Pro le Company Pro le also announce our greenhouse gas inventory and veri cation plan in the PureCSR principles, Medium-term: Intelligent energy monitoring and centralized About PEGATRON in response to carbon reduction requirements from our stakeholders. An international control for decentralized manufacturing Financial Performance environmental management system, ISO 14001, is also in place and Pegatron is certi ed by Long-term: Diversi cation of energy use Globalization Opportunity and third parties periodically. 【E ectiveness】 Arrangement E ectiveness Award List Strategy Short-term: Decreasing energy usage and cost, Reducing Sustainable Sustainable greenhouse gas emission Management Management Medium-term: Decreasing energy usage and cost, Reducing Corporate Governance Low Carbon & Energy greenhouse gas emission, Intelligent manufacture and Code of Conduct operation Information Security Long-term: Reducing greenhouse gas emission, enhance the Risk Management We establish a long term carbon reduction goal to show the climate change adaptation Regulatory Compliance determination on promotion of energy saving and carbon reduction. Responsible Responsible 1. Establish greenhouse gas inventory and reduction plan, set Partnership Partnership up greenhouse gas management system, and implement greenhouse gas reduction to meet the trend of Customer Service PEGATRON provides solutions to global warming through eco-friendly design and clean manufacturing. We make great e orts on carbon reduction in product manufacturing, internationally environmental protection and customer Sustainable requirements. Supply Chain delivery and disposal, and implement energy saving actions in daily operations. In Strategy for 2. Implement energy and resource management. Optimization Sustainable Sustainable addition to the direct disclosure of treasuring the natural resources in our PureCSR policy, Climate Change Environment Environment we have established a long-term energy conservation and carbon reduction goal to show of energy and resource utilization as the main consideration Low Carbon & Energy in the design, procurement and product usage stages to our determination to achieve carbon reduction. achieve continuous improvement and promote overall Greenhouse Gas environmental performance. Sustainable Design Our targets are reductions of 21 percent on greenhouse gas emissions, and 24 Environmental percent electricity consumption by 2020; from the level of 2009 per revenue dollar. Assess the impacts and adaptation of global warming based on Scenario Analysis Protection the 1.5°C or 2°C increase scenario. Joyful Work Joyful Work Employment Employment Risk Climate-related Identify climate related risks and opportunities based on Relationship Relationship Management Structure for Climate Change: Manage- Risk Identi cation organizational context, and then incorporate them into Attracting & Attracting & ment and Management management review meetings for environmental Nurturing Talent Nurturing Talent Set up a cross-departmental team to investigate energy usage, Process management system. Energy Saving Occupational Occupational discuss feasible energy saving programs, and monitor their status Meeting Health & Safety Health & Safety and bene ts. Consider the signi cant di erences within products and Employee Care Employee Care Indicator Governance Management PureCSR management representative is accountable for the processes, so we adopt the greenhouse gas emissions and Social Care Social Care Representative management of greenhouse gas emissions inventory and reduction. electricity consumption per unit of revenue as the indicator. Social Welfare Social Welfare Indicator Management Review the implementation of energy saving and greenhouse gas and Goal Current goal is to reduce 21% on greenhouse gas emissions, Community Community Review Meeting reduction target regularly. Involvement Involvement Corporate and 24% electricity consumption by 2020, from the level of Appendix-Index Appendix-Index 【Risk】 Reduction Goal 2009 per revenue dollar. Besides, we will develop next reduction goal based on the 1.5 °C or 2 °C scenario. GRI Content index GRI Content Index Short-term: Electricity saving, requirement on greenhouse gas United Nations United Nations reductions, and carbon trade Strategy Risk and Impact Global Compact Global Compact Medium-term: Expectations and planning from governments, UN Sustainability UN Sustainability customers, and stakeholders Development Goals Development Goals Statement Statement Long-term: Mandatory regulations on renewable and new 28 For the increasingly serious problem of climate change, we 2. Replacement to zero-loss Editorial Principles Editorial Principles analyze the risks that may be encountered and gure out how to post processors and usage of heat recovery A Word from A Word from avoid them as follows: the CEO the CEO 3. Vacuum system- Introduce vacuum Identi cation & Identi cation & equipment to replace vacuum Response Responded Risk after generators Communication Communication Risk Opportunity Social Responsibility Object Practice Response 4. Lighting system- LED lighting Commitment Stakeholder Regulatory Local governments are The de nition of laws 1. Establish greenhouse Low Communication Requirement increasingly paying and regulations can gas inventory Management Lighting and air conditioning 18,848,212 67,853,562 15,098 Material Issue attention to the be e ectively platform to collect operation plan Identi cation reduction in established in and monitor Remark: The amount of carbon reduction was calculated based on the latest electricity emission factor of each site, which was Sustainability greenhouse gas and response to practice emissions published by the competent authorities of Taiwan (0.533 Kg CO2 /KWh, 2018), China (0.8046 Kg CO2 /KWh, 2017), Mexico (0.458 Kg Development Goals energy use CO /KWh, 2016) and Czech 1.06 Kg CO /KWh, 2012). 2. Set the Group's 2 2 Company Pro le Company Pro le energy saving and About PEGATRON carbon reduction C. Evaluate the e ciency of the facilities or equipment: Financial Performance targets Cooperate with external parties to evaluate the e ciency of the facilities or Globalization Arrangement Carbon Carbon trading and The development of 1. Update or replace Low equipment and use them as a baseline for energy e ciency improvements. Award List trading / energy tax increase energy e ciency ine cient energy tax operating costs methods and equipment D. Learning from leading companies: Sustainable Sustainable technologies will help Management Management 2. Establish a In addition to arranging the non-scheduled meetings for the professionals on energy to reduce unit costs of monitoring Corporate Governance products within PEGATRON Group, sta s in the factories were also invited to join the events to Code of Conduct mechanism for energy use visit benchmark enterprises. Through these activities, we can learn more and nd the Information Security best practices for the improvements of energy e ciency in the factories. Risk Management Customer Energy saving measures Cooperate with and 1. Evaluate the Medium Regulatory Compliance Requirement and the requirements of learn from customers e ciency of facility / renewable energy use to enhance energy equipment E. Application of renewable energy: Responsible Responsible A solar power system was installed on the top oor of a facility to reduce the use of Partnership Partnership conservation operation measures and purchased energy. Customer Service 2. Benchmark with best renewable energy practice companies Sustainable researches and Supply Chain Power Generation Power Generation CO Reduction development 3. Evaluate, establish or Category Project 2 Sustainable Sustainable purchase renewable (kWh) (Megajoule; MJ) (tCO2e) Environment Environment energy Renewable Solar Power Low Carbon & Energy energy System 8,526,392 30,695,010 6,855 Greenhouse Gas Sustainable Design A. Introducing ISO 50001 energy management system: Environmental Protection To ensure e ective implementation of energy management and energy conservation Purchased electricity is the main source of greenhouse gas emissions in the PEGATRON Joyful Work Joyful Work policy. PROTEK and PEGAGLOBE have passed the external veri cations in 2018, and the Group, we not only produce products with lower energy consumption, but also Employment Employment management system will also be implemented at other sites. implement several energy saving actions in our daily operations (such as power usage Relationship Relationship management, illumination and air-conditioning management) to enhance the e ciency Attracting & Attracting & of electricity use at non-manufacturing area. Nurturing Talent Nurturing Talent B. Through the application of equipment or technology, recycling Occupational Occupational Health & Safety Health & Safety and management to achieve the Group's goal of energy and Employee Care Employee Care carbon reduction. Social Care Social Care Social Welfare Social Welfare CO Reduction Reduction 2 Community Community Category Project Reduction Involvement Involvement (kWh) (Megajoule; MJ) ( tCO e ) Appendix-Index Appendix-Index 2 GRI Content index GRI Content Index Application 1. Air conditioning system- Equipment 10,882,970 39,178,690 8,787 United Nations United Nations of new replacement; energy saving design Global Compact Global Compact equipment or for both sides; cleaning and UN Sustainability UN Sustainability technology/ prevention of bio lm; refrigeration Development Goals Development Goals Recycling and by using cooling tower in winter Statement Statement reuse season. 29 Analysis of electricity use in PEGATRON (2017-2019) : (GHG) Emissions Inventory “. We also obey ISO 14064-1 standard to disclose and verify Editorial Principles Editorial Principles GHG emissions. PEGATRON has introduced the greenhouse gas emission inventory in Electricity usage (GJ) Electricity usage per million NTD in revenue (GJ/million NTD) A Word from A Word from 2009, and chose the 2009 as the base year. The reference of global warming potential the CEO the CEO (GWP) is “The 5th Assessment Report (AR5), 2013” by IPCC, and the GHG emissions is Identi cation & Identi cation & 3,000,000 3.00 consolidated by operational control. Communication Communication 2,634,948 2,754,376 2.51 2,467,115 The company's greenhouse gas emission inventory covers direct emissions (scope 1) and Social Responsibility 2,500,000 2.50 Commitment indirect emissions from purchased electricity (scope 2). The inventory results are veri ed by 2.21 2.06 Stakeholder a third party and the veri cation statements are publicly disclosed on the company’s 2,000,000 2.00 Communication 1.81 website. The external veri cations of 2019 greenhouse gas emissions were conducted in Material Issue June, 2020. The total quantity of greenhouse gas emissions in 2019 was 602,956 tCO2e, and 1,348,664 Identi cation 1,500,000 1.50 the proportion of the six greenhouse gas emissions from operation shows in the following Sustainability table. The main source of emissions in 2019 was electricity usage and its ratio was 90.84%. Development Goals 1,000,000 1.00 Company Pro le Company Pro le Pie chart of the six main greenhouse gases: About PEGATRON 500,000 0.50 Financial Performance CO tons COe 96.29% Globalization 0 0.00 ● Arrangement SF tons COe 0.00% 2009 2017 2018 2019 ● Award List Mark: Only for non-renewable electricity usage. PFCs tons COe 0.00% Sustainable Sustainable ● Management Management HFCs tons COe 0.39% Corporate Governance ● NO tons COe 0.02% Code of Conduct ● Information Security CH tons COe 3.30% Risk Management Greenhouse Gas ● Regulatory Compliance Responsible Responsible Partnership Partnership Keep Adapting and Try to Eliminate the Impacts on The proportion of GHG emission of PEGATRON in past three years: Customer Service Business Continuity. Sustainable 2009 (Base year) 2017 2018 2019 Supply Chain In addition to the direct disclosure of treasuring the natural resources in our PureCSR Scope 1 (tCOe) 22,617.26 43,688.79 38,828.61 34,044.52 Sustainable Sustainable policy, our commitment to long-term energy conservation and carbon reduction was Environment Environment Scope 2 (tCOe) 327,497.39 610,190.29 638,582.53 568,911.59 disclosed by our chairman, TH Tung. We expect that we can contribute to global Low Carbon & Energy Total Emission(tCOe) 350,114.65 653,879.08 677,411.14 602,956.11 Greenhouse Gas greenhouse gas reduction through our e orts. Sustainable Design Environmental PEGATRON committed to develop eco-friendly design since its inception. In response to Protection the impacts of global climate change, we not only continue to improve the energy Greenhouse gas emissions in PEGATRON (2017-2019) : Joyful Work Joyful Work e ciency of products, but also develop the easy dismantling, easy recovery and energy GHG Emissions (tCOe) GHG Emissions per million NTD in revenue (tCOe/ million NTD) Employment Employment saving design for speci c products according to customer requirements. Meanwhile, we Relationship Relationship establish the internal environmental technology standards for manufacturing of green 800,000 0.65 0.7 Attracting & Attracting & products, and transform the risks of climate change into business opportunities for 653,879.08 677,411.14 Nurturing Talent Nurturing Talent 700,000 0.6 competition. Besides, we strive to reach the greenhouse gas reduction target at design 0.55 602,956.11 Occupational Occupational 600,000 0.51 Health & Safety Health & Safety and manufacturing stages, through strengthening energy conservation and enhancing 0.5 the e ciency of operations, with the optimal evaluation of energy consumption and cost. 500,000 0.44 Employee Care Employee Care 350,114.65 0.4 Social Care Social Care 400,000 0.3 Social Welfare Social Welfare In order to implement the greenhouse gas management of PEGATRON Group, our 300,000 Community Community headquarter and main manufacturing centers set up the “greenhouse gas inventory 200,000 0.2 Involvement Involvement committee” to execute the inventory management plan and identify signi cant emission Appendix-Index Appendix-Index sources as well as draft the reduction targets and plans. For reducing the impacts from 100,000 0.1 GRI Content index GRI Content Index business, production, activities and services, through the management process, we take 0 0 United Nations United Nations our responsibility for environment protection. Global Compact Global Compact 2009 2017 2018 2019 Remark 1: 2019 data has been veri ed by the third party. The veri cation statement can be accessed on the UN Sustainability UN Sustainability Development Goals Development Goals PEGATRON conducts “Greenhouse Gas Inventory” according to the Greenhouse Gas Company’s website. http://cht.pegatroncorp.com/csr/view/id/1/lang/en_US Statement Statement Protocol and our internal procedure “Management Procedure for Greenhouse Gases Remark 2: The base year is 2009. 30 The CDP performance in past three years(2017-2019): GP Editorial Principles Editorial Principles TL 9000 Speci c Product Quality Management System/ A Word from A Word from PEGATRON has actively participated in the CDP since 2009, ISO 13485 Speci c Customers' Green Product Management System the CEO the CEO and we are continuously responding to its greenhouse gas IATF 16949 Identi cation & Identi cation & emissions, climate related investment risks and opportunities Communication Communication through the questionnaire. We were awarded a performance Social Responsibility IECQ QC 080000 Hazardous Substances Process Management System Commitment band of C by the CDP in 2019, and will continue to join Stakeholder international projects and initiatives in the future to show our Communication attention and e orts on the relevant issues. Material Issue Identi cation Response Year Score ISO 9000 Quality Management System Sustainability Development Goals Climate Change 2019 Performance Band-C Company Pro le Company Pro le About PEGATRON Climate Change 2018 Performance Band-D Hazardous Substances Process Management Financial Performance Climate Change 2017 Performance Band-C █ Globalization Arrangement PEGATRON has professional experience in integration of design with production and Award List service. In addition to green supply chain reinforcement, we also provide customers with Sustainable Sustainable creative energy saving and hazardous substance free (HSF) product design concept to Management Management facilitate the introduction of green products. We meet customers’ green requirements as Corporate Governance Sustainable Design well as legal requirements at the stage of designing and material choosing. The banned Code of Conduct substances include serious environment impact substances which are restricted to be Information Security We care the society, treasure the environment and make used according to EU RoHS or REACH. In addition, further control of more than 50 Risk Management chemical substances on ozone depletion substances and radioactive materials has been Regulatory Compliance everything simpler by designing. implemented. The restrictions of hazardous substances contained in batteries and Responsible Responsible packing materials also have been introduced into PEGATRON HSF management system in Partnership Partnership As a professional DMS, PEGATRON designs innovative and high-tech electronics products accordance with regulations and customer requirements. To align with customers’ green Customer Service with the concept of economic, society and ecology sustainability. We focus on the product requirements, we parse customers’ requirements and the current international Sustainable enhancement of product energy e ciency to respond to the issues of global warming and Supply Chain green product regulations, and integrate them into our HSF management system limited natural resources, as well as to improve energy e ciency of products. In order to Sustainable Sustainable gradually to practice corporate social responsibility on green products. Environment Environment reduce the impacts on the environment and lower or eliminate the negative e ects on Low Carbon & Energy health and safety in designing and manufacturing stages, we control the usage of hazardous Greenhouse Gas chemicals and use recyclable materials according to international environmental protection Sustainable Design regulations and customer requirements. PEGATRON’s Restriction Scope of Hazardous Substances Environmental Protection “PEGATRON continually focus on product safety, regulatory compliance and pursues Joyful Work Joyful Work improved product quality through innovation, e cient manufacturing, eco-friendly RoHs Employment Employment design, on-time delivery, reliable services, lean processes and comprehensive training to Relationship Relationship earn customer satisfaction.” is our Green Management System’s (PureGMS) policy. Our Attracting & Attracting & Pb/Cd/Hg/Cr6+/P Nurturing Talent Nurturing Talent product quality management activities are based on ISO 9000 Quality Management BBs/PBDEs/DEHP/ System. Our IECQ QC 080000 management system is developed to ensure all our products International BBP/DBP/DIBP Occupational Occupational REACH Health & Safety Health & Safety under control to avoid hazardous substances used or product contained from the stage of requirements Employee Care Employee Care J-Moss customers’ requests to the stage of products delivery. Meanwhile, we establish GP Annex XVII Social Care Social Care management system and get certi cations of TL 9000, IATF 16949 and ISO 13485 to meet California Proposition65 China RoHS Annex XIV Customer Social Welfare Social Welfare speci c customer requirements. PPWD(94/62/EC) HF/LH Requirements Community Community 2006/66EC Br (Bromine) Involvement Involvement PEGATRON tracks and summarizes all international environmental regulations including Pegatron Other Appendix-Index Appendix-Index hazardous substances, green marks, environmental labels and other information. Relevant Cl (Chlorine) customers’ substance speci cations GRI Content index GRI Content Index units report the regulatory compliance and response measures on the regularly Steering requirements United Nations United Nations Committee (SC) meetings. The latest environmental regulations are also communicated Global Compact Global Compact internally through the monitoring platform for regulations. PEGATRON had no case of PAHs UN Sustainability UN Sustainability Ozone Development Goals Development Goals noncompliance led to nes with regulations concerning about the health and safety Radioactive DMF Statement Statement impacts or information labeling by products and services in 2019. 31 To meet the international environment regulations and customer requirements, PEGATRON HSF e-learning course: Editorial Principles Editorial Principles has issued “PureGMS HSF Technical Standard” and “PureGMS Low Halogen and A Word from A Word from Halogen-Free Technical Standard”. We tailor customers’ green product speci cations the CEO the CEO upon requests, and included them in our component approval process. All components Basic Course Intermediate Course Advanced Course • Introduction of internationally • The ag coding standard of • Introduction of HSF parts Identi cation & Identi cation & need to follow PEGATRON’s or Customer’s requirements of green product speci cations in Communication Communication 1 environmental regulations 2 green parts 3 approval order to reduce the hazardous substances of product in design stage of life cycle • Introduction of PureGMS • Introduction of SPT-00001 • Introduction of e-Green platform Social Responsibility PureGMS HSF technical standard Commitment e ectively. To make sure that all products can meet the global regulations and customer Stakeholder requirements of the hazardous substances, it needs to be divided into multiple phases to Communication control the use of hazardous substances. Material Issue To assess the safety and health impacts of product life cycles for employees and users, we Identi cation conduct regular internal and external audits of IECQ QC 080000 hazardous substance free 2019 HSF Training: Sustainability management system every year to ensure the implementation and progress towards Reach rate Target Development Goals 100% Company Pro le Company Pro le continuous improvement. 80% About PEGATRON 60% Financial Performance 40% Globalization 20% Arrangement The hazardous substances compliance: 0% Award List Basic course Intermediate Advanced Re-training Re-training Sustainable Sustainable course course course A course B Management Management ： Corporate Governance Remark For all HSF courses counted until the end of year 2019, the completion rates were up to 99% or more. Code of Conduct Hazardous eGreen IQC Information Security Substances System Risk Management HSF PureGMS HSF PureGMS LH/HF HSF Regulatory Compliance Technical Technical PQC Environmental Labelling Supplier Standard Standard part █ Responsible Responsible Partnership Partnership All products designed and manufactured by PEGATRON are complied with customer International Customer Customer Service Green Product requirements, international regulations and related regulations in sales territories and Standards OQC Sustainable Regulations been veri ed accordingly. The environmental information is marked on the product Supply Chain based on the demand. Since the raise of the environmental protection movement in Sustainable Sustainable Europe and United States in the 70’s, the concept of green consumption has been Environment Environment PEGATRON considers the trend of global environmental regulations is stricter for the promoted, and its environmental labeling campaign has also been born. Through the rule Low Carbon & Energy hazardous substances management. Therefore, to improve human health and safety, and of environmental labelling, the trend aims to awake consumers to choose products with Greenhouse Gas reduce the impacts on environment, Pegatron not only sets up the hazardous substance recyclable, low pollution and resource saving to improve environmental quality. In recent Sustainable Design reduction program within all components yearly, but also monitors global environmental years, the trend of environmental labeling in various countries has gradually expanded Environmental Protection regulations periodically in order to comply with the international environmental the scope of social responsibility. In addition, to pay attention to the three R requirements Joyful Work Joyful Work regulations in time. In addition, through biweekly internal PureGMS Steering Committee of the product side, the company can also ful ll its social responsibility. Pegatron is in line Employment Employment Meetings, the status of important green product regulations can be reviewed and with the world trend and hopes to be more competitive. From the design to the Relationship Relationship e ective actions will be given based on the instructions by the relevant functional leaders manufacturing, including waste reduction, recycling and other related requirements, Attracting & Attracting & in the committee. Besides, in order to enhance the competency of all employees on HSF Pegatron continues to work hard to ful ll the social responsibility. For the customer’s Nurturing Talent Nurturing Talent management system, new employees need to complete HSF Basic, Intermediate or portion, the company will actively cooperate with the green marketing needs of Occupational Occupational customers' products. For meeting customer requirements, the e ectiveness of the Health & Safety Health & Safety Advanced training courses based on di erent levels of works (see Table 1). The materials environmental labeling ratio of computer products in previous years is shown as below Employee Care Employee Care of HSF refresher training courses are reviewed every year in accordance with the Social Care Social Care international green product regulations and standards which updated in the past year. All table. In the future, we will continue to meet the legal requirements, customers' green products requirements, and ful ll the obligations of corporate citizenship. Social Welfare Social Welfare employees shall participate in the refresher training courses in the current year based on Community Community their job functions. The targets of the completion rates of HSF related training courses are Involvement Involvement achieved every year (see Figure 2). It helps us to understand the changes of new Appendix-Index Appendix-Index international regulations on green products and implement HSF management system GRI Content index GRI Content Index e ectively. Generally speaking, PEGATRON always catches the trend of international United Nations United Nations regulations in time and cooperate with customers to identify the environmental Global Compact Global Compact requirements so as to ensure the compliance. UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement 32 Eco Label of Computer Products in PEGATRON: The packing design is optimized to reduce the use of materials. Editorial Principles Editorial Principles Eco Label Ratio 25% A Word from A Word from 20.65% the CEO the CEO 19.20% 20% shape cover design is changed to single sheet to reduce the process Identi cation & Identi cation & and“ㄇ” prevent the contamination in manufacturing. Communication Communication Cover 15% Social Responsibility Packa- Commitment 12.63% Streamline packaging design to lower the use of materials. Stakeholder 10% Packing ging Communication Design Lighten the weight of packaging paper to reduce around 40% of Material Issue 5% Paper Identi cation Ship- material utilization. Sustainability ment Development Goals 0% Change the stacking array and extend the space for shipment to reduce Company Pro le Company Pro le 2017 2018 2019 the emissions from transportation and decrease the use of materials. About PEGATRON Financial Performance The focus of our research and development of electronics is to save energy. From the Globalization beginning of product development, we consider the energy related requirements of Arrangement di erent nations in the design phase. In order to enhance power consumption Award List e ciency, we not only meet current requirements of energy use, but also anticipate Sustainable Sustainable Product Safety Regulation Management Management customers’ needs and set targets according to the requirements of latest version of █ Corporate Governance Energy Star. To ensure the users’ lives and property safety, many countries have set safety and Code of Conduct electromagnetic compatibility speci cations and testing standards for a variety of Information Security In October 2011, to ensure electronics manufactured by PEGATRON could meet the products to protect the rights of customers and end users, PEGATRON establishes an Risk Management requirements, we built the energy consumption laboratory in headquarter which internal veri cation process according to each national standards and regulatory Regulatory Compliance complies with the SMTL (Supervised Manufacturers Testing Laboratory) program, and requirements. Through the standardized process, our RD conducts overall Responsible Responsible assessments and testing for products accordingly. In addition, we also follow related Partnership Partnership certi ed by UL (Underwriters Laboratories Inc.) which was accredited by US EPA, as well as recognized by TUV SMTL in 2014. safety and EMC speci cations and requirements at the manufacturing stage. Customer Service PEGATRON had no violation case or penalty by government due to product safety Sustainable Supply Chain related issues in 2019. Sustainable Sustainable Sustainable packaging Environment Environment █ International regulations regarding product safety are reviewed in the regular management Low Carbon & Energy We include resource conservation, reusability and recyclability in our packing review meetings. If there is any update, we will instantly notify relevant personnel to ensure Greenhouse Gas design assessments. Meanwhile, we also consider minimizing the environmental the regulatory compliance. We provide regular trainings for relevant personnel, including Sustainable Design impacts of packing materials and manufacturing processes as well as the nal product safety standards introduction, product safety inspection introduction, plastic Environmental disposal of no longer needed packing materials during package design. material selection guidelines, materials and parts safety requirements to ensure that our Protection employees have the necessary skills when operating the product safety activities. Joyful Work Joyful Work Eco-friendly Considerations: Employment Employment Relationship Relationship We take green concept into account when designing the package and using the To protect the health and safety of users’ lives and properties, and safeguard the interests Attracting & Attracting & raw packing materials. of them, PEGATRON performs internal product safety audits to verify the e ectiveness of Nurturing Talent Nurturing Talent the quality system. According to the internal regulations, we also develop the abnormal Occupational Occupational handling process of product safety. When the product safety performance is against the Health & Safety Health & Safety requirements while procurement, manufacturing or inspection, the identi cation, Employee Care Employee Care Use renewable raw materials. isolation and disposal of it shall be taken immediately and the relevant units shall be Social Care Social Care informed to retest the repaired or reworked products. Social Welfare Social Welfare Community Community Comply with EU Packing Involvement Involvement and Packing Bottom separators to Appendix-Index Appendix-Index Waste Directive substitute foam materials GRI Content index GRI Content Index United Nations United Nations Global Compact Global Compact Single color Prohibiting the use of UN Sustainability UN Sustainability packing materials Packing Materials polyvinyl chloride Development Goals Development Goals Statement Statement 33 Waste Generation in PEGATRON from 2017 to 2019: Environmental Protection Editorial Principles Editorial Principles Waste generation (metric tons) A Word from A Word from Waste generation per million NTD in revenue (metric tons /million NTD) the CEO the CEO The earth gives everything we need. 0.07 78,000 Identi cation & Identi cation & 0.06 Communication Communication Now, it’s time for us to protect it. 0.06 0.06 0.06 77,000 Social Responsibility 77,128 77,089 Commitment Sustainable environment is a long-term goal of the PEGATRON Group. For products, we 0.05 Stakeholder merged green and environmental friendly concepts into our product design. For daily 76,000 Communication operations, we comply with international and local regulations to reduce the impacts on 0.04 Material Issue the environment. This philosophy is disclosed in our PureCSR policy and implemented in 75,000 Identi cation our daily environmental management. Beyond this, we take the natural ecosystems into 0.03 Sustainability consideration when building the landscape of each site. 74,000 Development Goals 0.02 Company Pro le Company Pro le 73,938 The company sets up the grievance mail box and a special telephone line for external 0.01 73,000 About PEGATRON stakeholders to provide suggestions or make appeals. We also set internal communication Financial Performance channels for employees to utilize. Each site has dedicated unit to deal with environmental 0.00 72,000 Globalization 2017 2018 2019 Arrangement complaints and is responsible for the implementation of environmental protection, Award List including regular assessments of compliance with local legal regulations, write Sustainable Sustainable management procedures and commission with third parties for testing so as to reduce Recycling waste: 96% Management Management environmental pollution and the impacts of the organization’s activities. There was no Corporate Governance signi cant violation of environmental laws and regulations in 2019. (Signi cant violation is Domestic waste: 2% % 2% Code of Conduct de ned as being ned for over 1 million NTD.) 96 2% Hazardous waste: 2% Information Security Risk Management Regulatory Compliance Waste Handling & Disposal Responsible Responsible █ Partnership Partnership The challenge of waste handling is one of the major environmental aspects in PEGATRON Generation of hazardous wastes in PEGATRON from 2017 to 2019 Customer Service Group. As a professional DMS company, we follow our internal procedures to control Sustainable wastes produced at each stage. Almost all wastes are treated through recycling ways. Hazardous waste generation (metric tons) Supply Chain However, for domestic waste, since we have screened almost all recyclable waste, the Hazardous waste generation per million NTD in revenue (metric tons /million NTD) Sustainable Sustainable Environment Environment major handling method for domestic waste is incinerated. To achieve the goal of circular 0.0013 Low Carbon & Energy economy, PROTEK has promoted a zero-waste to land ll project which included 2,000 0.0015 0.0012 0.0011 Greenhouse Gas compliant management, veri cation and audit to ensure all wastes are treated by appropriate disposal instead of direct land ll disposal. PROTEK has achieved “100% 1,500 Sustainable Design 0.0010 Environmental diversion, with 4% thermal processing with energy recovery”, which was veri ed by a third 1,392 1,454 1,770 Protection party based on UL 2799 environmental claim validation procedure for zero waste to 1,000 Joyful Work Joyful Work land ll in November 2016. We’ll continue to devote to recycling treatment in the future. 0.0005 Employment Employment 500 Relationship Relationship The principle of waste management in PEGATRON is to minimize the importation of raw Attracting & Attracting & materials. In addition to source reduction, we pay attention to recycling packing materials 0 0.0000 Nurturing Talent Nurturing Talent 2017 2018 2019 Occupational Occupational to improve the re-utilization rate. Furthermore, we have set waste management unit in Health & Safety Health & Safety each site to make an overall plan for daily operations and waste statistics, and help other Employee Care Employee Care units to implement waste reduction and recycling. Factories in Taiwan have launched the Social Care Social Care plastic reduction program. Disposable tableware is no longer provided in our restaurants Generation of recycling waste in PEGATRON from 2017 to 2019 Social Welfare Social Welfare since November 2019. In addition, the Welfare Committee has given each employee a set Recycling waste generation (metric tons) Community Community of reusable containers and bag, which can be used in our restaurants and daily dining Recycling waste generation per million NTD in revenue (metric tons /million NTD) Involvement Involvement outs. We hope to achieve the goal of waste reduction by decreasing the use of plastic 0.0600 Appendix-Index Appendix-Index 76,000 bags and disposable lunch boxes. 0.059 74,219 74,104 0.0580 GRI Content index GRI Content Index 74,000 United Nations United Nations 0.055 0.0560 0.054 Global Compact Global Compact 72,000 70,964 0.0540 UN Sustainability UN Sustainability Development Goals Development Goals 70,000 0.0520 Statement Statement 68,000 0.0500 2017 2018 2019 34 Generation of domestic waste in PEGATRON from 2017 to 2019 we devote ourselves to reduce the use of water and improve internally on how we Editorial Principles Editorial Principles handling wastewater. Secondly, we pay attention to promote water saving concept into Domestic waste generation (metric tons) A Word from A Word from our supply chain. PEGATRON engages in enhancement of the e ciency of water resource the CEO the CEO Domestic waste generation per million NTD in revenue (metric tons /million NTD) usage and reduction of environmental impacts caused by industrial development, to Identi cation & Identi cation & meet the international environmental protection trend. We initiate green value and 1,800 0.0014 Communication Communication 0.001 implement corporate social responsibility through actions for sustainable cycle and the Social Responsibility 1,600 0.0012 concept of coexistence for economic growth and environmental protection. For Commitment 1,583 0.001 1,400 reduction from source, we focus on the improvements of facilities and publicizing water Stakeholder 1,455 0.001 0.0010 resource treasuring in each site. Communication 1,200 1,214 Material Issue 0.0008 Identi cation 1,000 To enhance the e ciency of water use, we adopt prevention control techniques of water Sustainability 800 0.0006 resources. The water conservation is part of resource utilization control program as well. Development Goals Water recycle e ciency is our target. We periodically review water conservation 600 Company Pro le Company Pro le 0.0004 performance for continuous improvement. Currently, the main source of water for each About PEGATRON 400 site is tap water. We actively promote water conservation activities, and each site has 0.0002 Financial Performance 200 developed and implemented control measures for water conservation. Water resource Globalization management and water pollution prevention should start from water saving. All sites of Arrangement 0 0.0000 2017 2018 2019 PEGATRON have set up and implemented several control procedures for water saving and Award List exploring possible ways of water recycling in each kind of water using facilities. Sustainable Sustainable Management Management Corporate Governance Hazardous and Non-hazardous waste generation analysis in each site: Code of Conduct Water Resource Saving Measures Information Security Total weight of Total weight of Risk Management hazardous waste (tons) non-hazardous waste (tons) Regulatory Compliance Responsible Responsible Taiwan China Mexico Czech Taiwan China Mexico Czech Partnership Partnership Publish posts and slogans Labels on water use devices for Customer Service Reuse 0 0 0 0 0 10,686 0 49 about water conservation. information of repair notice. Sustainable 3 4 Supply Chain Recycling 36 649 0 0 780 34,114 5 272 Water saving training Induction faucets and ushing Sustainable Sustainable Recovery 0 55 0 0 0 28,198 0 0 Environment Environment programs through activities. 2 5 devices for urinal bowls. Composting 0 0 0 0 0 0 10 0 Low Carbon & Energy Greenhouse Gas Incineration 0 992 0 1 349 741 0 0 Install water saving Choose water and Sustainable Design Land ll 37 0 0 0 0 87 4 24 1 6 devices in faucets. energy saving devices. Environmental 0 0 0 0 0 0 0 0 Protection On-site storage O ce Joyful Work Joyful Work Others 0 0 1 0 0 0 0 0 Employment Employment Remark: The type of Others belongs to waste disposal vendor’s treatment such as physical treatment. Relationship Relationship Attracting & Attracting & Nurturing Talent Nurturing Talent Individual water meter To make sure all recyclable hazardous wastes are processed in compliance with local Occupational Occupational for water use. Health & Safety Health & Safety regulations and in an e cient manner, each site has to follow our internal procedures to Introduce the condensed Employee Care Employee Care coordinate waste handling process. We verify each waste disposal vendor’s quali cation in water recycling system for Social Care Social Care a transparent, fair and impartial manner. Through this process, we are able to select the chillers and enhance the 3 Water run-o warning devices Social Welfare Social Welfare lowest risky company to prevent any environmental impact from improper disposal of e ciency of water 2 4 for water pools and water tanks. Community Community wastes. All hazardous industrial wastes are handled in compliance with local regulations. curtain pumps. Involvement Involvement Appendix-Index Appendix-Index GRI Content index GRI Content Index Water Resource Optimal design of water 1 5 Arrangement of United Nations United Nations █ consumption in chillers. irrigation process. Global Compact Global Compact Water resource is not a signi cant environmental aspect for PEGATRON Group. However, Factory UN Sustainability UN Sustainability water shortage caused by climate change and the large variation of rainfall distribution is Development Goals Development Goals a global issue. Our principle for water resource management adopts two measures. First, Statement Statement 35 Water usage in PEGATRON from 2017 to 2019: We have a dedicated wastewater analysis laboratory to monitor the quality of wastewater Editorial Principles Editorial Principles at East China Operation Center. The instruments for checking water quality are calibrated A Word from A Word from Water usage (cubic meters) periodically to make ensure the accuracy of monitoring. We improved the wastewater the CEO the CEO Water usage per million NTD in revenue (cubic meters/million NTD) treatment system to ensure water quality by: Identi cation & Identi cation & Communication Communication 10,000,000 6.92 8.00 1. Improve the facilities to enhance the treatment e ciency of oils. Conduct the daily inspection Social Responsibility 5.65 and maintenance of sewage treatment facilities to ensure the quality of wastewater. 8,000,000 Commitment 6.00 2. For carrying out the special treatment of canteen wastewater with oils, we regulate the 8,256,137 7,575,125 4.75 Stakeholder speci cations of grease interceptor, and perform the daily cleaning and maintenance to Communication 6,000,000 6,495,180 4.00 ensure the quality of wastewater. Material Issue 4,000,000 Identi cation 2.00 Sustainability 2,000,000 Development Goals Green Transportation Company Pro le Company Pro le 0 0.00 █ About PEGATRON 2017 2018 2019 In order to save energy and increase the e ciency of tra c / transport usage, Financial Performance we continue to promote green transportation and business communications. Globalization Arrangement Total Amount of Water Withdrawal in 2019 by Location: Award List 【Transportation of Goods】 Sustainable Sustainable Location Taiwan China Mexico Czech Management Management Total Amount of Corporate Governance Lower the weight of products and packing materials to reduce the fuel consumption. Water Withdrawal Code of Conduct 175,155 6,306,043 2,400 11,582 When selecting suppliers, the locations of the suppliers are taken into account to improve (cubic meters) Information Security the transportation e ciency. Risk Management To meet environmental protection and carbon reduction policy, marine transportation is Regulatory Compliance considered rst so as to reduce carbon emissions. Direct ights are preferred for air Responsible Responsible The major wastewater of PEGATRON in each site is domestic wastewater. In order to ensure transportation to reduce tra c time and distance. Partnership Partnership the water quality meet the related wastewater protection regulations, we issued the Customer Service “Water Control Management Procedure“ to ensure the wastewater quality complies with Centralized transportation to reduce the times of transportation. Sustainable local regulatory requirements. The periodic monitoring of wastewater quality continues to Supply Chain be conducted by third parties. The monitoring subjects are identi ed by professionals For overseas transportation, we cooperate with the shipping companies which are willing to Sustainable Sustainable according to local legal requirements. All monitoring results in 2019 were complied with reduce the vessel speeds. For ground transportation, transportation by trucks are replaced Environment Environment the standards and the wastewater was discharged to the sanitary sewer systems. by railway system which is more environmental friendly. Low Carbon & Energy From 2020, the International Maritime Organization has set a limit of 0.50% m/m on the Greenhouse Gas sulfur content of the fuel used on ocean shipments. Our transportation suppliers comply Sustainable Design Wastewater generation in PEGATRON from 2017 to 2019: with regulation to reduce sulfur oxide emissions. Environmental Protection Joyful Work Joyful Work Wastewater generation (cubic meters) Employment Employment Wastewater generation per million NTD in revenue (cubic meters /million NTD) Relationship Relationship Attracting & Attracting & 7,000,000 5.47 6.00 Nurturing Talent Nurturing Talent 6,004,436 【Employee Transportation】 【Business Exchange】 6,000,000 5.00 Occupational Occupational 6,531,831 4.48 5,312,570 Health & Safety Health & Safety 5,000,000 Employee Care Employee Care 3.89 4.00 4,000,000 Social Care Social Care 3.00 Social Welfare Social Welfare 3,000,000 Daily commuting: Using video / voice / live Community Community 2.00 In Taiwan, more than half of employees Involvement Involvement 2,000,000 commuting by public transportation to communications to replace the factories and corporate headquarters. face to face meetings is our Appendix-Index Appendix-Index 1,000,000 1.00 Our company also provides shuttle buses active strategy. GRI Content index GRI Content Index 0 between di erent working places. United Nations United Nations 0.00 Global Compact Global Compact 2017 2018 2019 UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement Navigate Joyful Working the To develop the philosophy of “Priest” and “Parents”, Future and respect the characteristics of each employee. 37 PEGATRON Group’s philosophy is based on a work-life balance of "Joyful Working, Employee Pro le Editorial Principles Editorial Principles Happy Living". We encourage our employees to confront work duties with a positive █ A Word from A Word from attitude and to increase their potential by welcoming challenges, working above and At the end of 2019, PEGATRON had about 169,083 employees worldwide included the CEO the CEO beyond expectations and by constantly improving themselves, while working within a dispatched workers. PEGATRON respects equal rights and anti-discrimination of each Identi cation & Identi cation & team environment. When all team members work together to achieve excellence, all candidate’s gender, religion, race, national origin or political party. When we recruit new Communication Communication employees can enjoy a “Happy Life”, which is PEGATRON Group’s ultimate goal. employees, our primary consideration is the candidate’s skills and abilities to do the job. Social Responsibility Commitment Our recruitment policy is speci ed clearly to assure the fairness of recruitment, Stakeholder employment, development, and performance assessment and rewards for both Communication applicants and employees. The total members of full-time non-managers is 7,202 in Material Issue 2019 (compared to 2018:↑215) in Taiwan. The company provides the same working Identi cation Employment Relationship conditions under a consistent management. For the management of internal sta s, the Sustainability Development Goals work category (including operator, assistant engineer/ administrator, senior engineer/ Company Pro le Company Pro le Respect International Human Rights and Cultivate Local Talents. administrator, deputy section manager/ specialist, section manager, manager, etc.) is About PEGATRON corresponding to the required capability and performance as the basis. There is no Financial Performance To promote the protection of human rights and prevent human rights violations, unfair treatment because of gender, age, region, religion, nationality or political party. Globalization PEGATRON is in compliance with the labor laws and the internationally recognized basic Under the spirit of appraisal and promotion system, sta s with the same ability have the Arrangement labor rights to protect employees’ lawful rights and interests. Moreover, we also develop same opportunities for promotion. Award List the policies and procedures to protect the basic human rights of employees. Sustainable Sustainable As a global company, we not only pay attention to the importance of the global market, Management Management but also care about local development. All of our employees, who exhibit competence Corporate Governance in their positions, have the same promotional opportunities. Over 65% of our managers Code of Conduct were local people in major operation sites so as to practice the concept of talent Information Security localization. Furthermore, we proactively employ disabled people and provide Risk Management adequate job opportunities for disadvantaged groups to respond government policy Regulatory Compliance and achieve hiring localization. Responsible Responsible Partnership Partnership PEGATRON annual manpower structure in 2019 Customer Service Sustainable Supply Chain Gender Age Permanent Temporary (includes xed-term contracts) Sustainable Sustainable Total Environment Environment Full-Time Part-Time Full-Time Part-Time Male Female Under 30 31-50 Over Low Carbon & Energy yrs. yrs. 51 yrs Male Female Male Female Male Female Male Female Greenhouse Gas Sustainable Design Taiwan 8,036 4,961 3,075 2,169 5,359 508 4,642 2,000 4 1 315 1,074 0 0 Environmental Protection China 144,988 102,281 42,707 116,368 28,547 73 12,897 5,981 0 0 84,462 41,648 0 0 Joyful Work Joyful Work Mexico 64 46 18 15 40 9 44 17 0 0 2 1 0 0 Employment Relationship Czech 642 306 336 200 321 121 118 86 2 6 172 207 12 39 Attracting & Nurturing Talent Occupational Health & Safety Employee Care Social Care Social Care Location Taiwan China Mexico Czech Social Welfare Social Welfare Community Community The proportion of senior management level locally (%) 98.6% 78.3% 58.3% 86.4% Involvement Involvement Appendix-Index Appendix-Index GRI Content index GRI Content Index Notes: (1) The proportion of senior management level locally (%) = total number of senior management who hired from the local community / total number of senior management at the site. United Nations United Nations (2) The senior management is the manager of each level who have the management responsibilities. Global Compact Global Compact (3) The local people are the employees who were born or have the legal rights to reside inde nitely in local country, but the scope of Czech Republic is extended to European Union (EU). UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement 38 Labor Rights the workplaces. In addition to the clear rules and policies (e.g. Work rules, Prevention, Editorial Principles Editorial Principles █ Correction, Complaint and Enforcement of Sexual Harassment for workplace Procedure), we A Word from A Word from In order to clearly de ne the rights and obligations between labor and management to improve also set up an email mailbox and a hotline which employees can use to report sexual the CEO the CEO the management system, and let them work together and seek business development, harassment. There is a strictly con dential rule in place to protect the whistleblowers. Identi cation & Identi cation & PEGATRON regulates the labor rights related requirements based on the Code of Conduct of PEGATRON will not retaliate against any employee who claims a complaint. All changing Communication Communication Responsible Business Alliance (RBA) and local labor regulations, as well as respects human rights terms of employment have been duly noti ed according to regulatory requirements and the Social Responsibility Commitment and follows the relevant norms of labor rights. Through the operation of PureCSR management information is also provided immediately through EIP websites, emails, TVs or bulletins, etc. system, we formulate the program to ensure that employees' rights can be respected. The Stakeholder Complaints hotline for sexual harassment and workplace violence： Communication implementation guidelines related to labor rights include: Material Issue 886-2-8143-9001 EXT 33395 Identi cation Complaints mailbox for sexual harassment and workplace violence： Sustainability Prohibition of child labor and Protect young workers Development Goals 【 】 [email protected] Company Pro le Company Pro le The appointment and recruitment processes of PEGATRON are in accordance with local About PEGATRON regulations, and comply with the requirements of RBA Code of Conduct. We set the Financial Performance Respect for freedom of association and Protect labor rights minimum age requirements and develop the identi cation system and control measures 【 】 Globalization In order to be in compliance with local regulations, we respect that each employee has Arrangement to ensure that the employment of child labors is strictly prohibited at each site. We also develop the” Child Labor Remediation Procedure" to respond and commit the measures the rights to participate in unions, collective bargaining and peaceful assemblies. Award List Simultaneously, we also respect the right of non-participation. Nearly 19% of employees Sustainable Sustainable taken when hiring a child labor carelessly. For young workers under the age of 18, we Management Management promise not to let them be responsible for the works which may endanger their health or have been covered by collective bargaining agreements. We not only take into account Corporate Governance safety, and provide the appropriate support and trainings. the interests of both sides, but also protect the rights of employees through an open and Code of Conduct equitable consultative mechanism. If the company has any major operational change Information Security may a ect employees, the employees will be informed in advance based on labor Risk Management Prohibition of discrimination and Provide fair remuneration regulations in Taiwan. The employees and their representatives in overseas sites will also Regulatory Compliance 【 】 be informed at least four weeks before the change come into e ect. Besides, there is no PEGATRON prohibits any form of harassment and unlawful discrimination. We prohibit any Responsible Responsible union organized in Taiwan, but the labor and management meeting is held quarterly to Partnership Partnership discriminate in employment because of race, color, age, gender, sexual orientation, ensure the interests of employees. Rules for labor and management meeting are also set Customer Service ethnicity, gender identity and expression, disability, pregnancy, religion, political a liation, and posted on the company's website for colleagues to review. Most overseas sites have Sustainable union membership, veteran status, genetic information and marital status while employee employee’s representative meetings or unions to e ectively promote the relationship Supply Chain hiring and working. Meanwhile, we prohibit forcing workers or potential workers to accept between labors and management as well as ensure the rights for exercising freedom of Sustainable Sustainable discriminatory health checkups or physical examinations. We follow the principle of pay Environment Environment association and collective bargaining. West China Operation Center has established the equity and regularly review the market information to set up the competitive pay levels, employee’s representative meeting and the meeting is held in November each year Low Carbon & Energy there is no di erence because of gender, race, religion, class and so on. In addition, our Greenhouse Gas according to the management procedure. The meeting agenda will be collected by salaries and bene ts are complied with local regulations and industry standards, the employee representatives before meeting. Sustainable Design deductions of wages due to disciplinary purposes are prohibited. Environmental Protection Joyful Work Joyful Work Location Channel for collective bargaining Employment Prohibition of forced labors and Freedom of choice of occupation Relationship 【 】 Taiwan Labor-Management Meeting PEGATRON has the labor contract with employees based on local laws, and the hiring Attracting & China Unions or Employees' Representative Meeting Nurturing Talent relationship is established based on mutual consent in the contract and prohibits to use Occupational any forced labors. In addition to against illegal human tra cking and slavery, we also have Mexico Unscheduled Meeting Health & Safety prohibition of forced or compulsory labors. Control measures for agencies are also carried Czech Union Employee Care out and compliance with local regulations is included in the contracts signed with the Social Care Social Care agencies. PEGATRON complies with the requirements of RBA Code of Conduct to have no Social Welfare Social Welfare unreasonable restriction for labors to move freely in and out of the workplaces. Employees Community Community have the rights to leave or terminate their employment relationships at their free will. Establishment of working time control mechanism to protect Involvement Involvement 【 labor rights and interests Appendix-Index Appendix-Index 】 GRI Content index GRI Content Index Prohibition of inhuman treatment and to keep communication In accordance with regulations and RBA code of conduct, under the premise of full rest United Nations United Nations time and meal time, overtime application can be made by employees voluntarily. It shall Global Compact Global Compact 【 channels open be applied prior to the overtime and also approved by the managers. All sites have set up UN Sustainability UN Sustainability 】 Development Goals Development Goals PEGATRON prohibits any tangible or intangible sexual harassment, violence, abuse, the warning mechanism and automatic noti cation mechanism of overtime to control Statement Statement corporal punishment, mental or physical oppression and other kinds of discrimination in the working hours. In the system, di erent levels of overtime hours are marked by colors
based on the management needs. When the overtime hours are exceeding the maximum permitted overtime hours, the approval level will be upgraded. The report can be customized by the system for multiple management purposes based on di erent requirements, as well as a good reference for the department and factory management. The function of working hour inquiry is also included in the system which can assist the responsible personnel of business units to check the working hours, so as to arrange for reasonable overtime. In accordance with regulations and RBA code of conduct, under the premise of full rest time and meal time, overtime application can be made by employees voluntarily. It shall be applied prior to the overtime and also approved by the managers. All sites have set up the warning mechanism and automatic noti cation mechanism of overtime to control the working hours. In the system, di erent levels of overtime hours are marked by colors
39 based on the management needs. When the overtime hours are exceeding the maximum tasks on hand so employees can fully demonstrate their talents in the workplaces. permitted overtime hours, the approval level will be upgraded. The report can be Editorial Principles Editorial Principles The wages we paid to workers comply with the relevant remuneration laws, including customized by the system for multiple management purposes based on di erent A Word from A Word from minimum wages, overtime and statutory bene ts, etc. We review and adjust the the CEO the CEO requirements, as well as a good reference for the department and factory management. compensation by the reference of economic indicators and industry wage level every Identi cation & Identi cation & The function of working hour inquiry is also included in the system which can assist the year. For the employees who are resigned or retired, they can legally have severance pays Communication Communication responsible personnel of business units to check the working hours, so as to arrange for or pensions. We also continue to corporate with the local government projects of Social Responsibility reasonable overtime. Commitment unemployed training programs to promote their continued employability. The average Stakeholder annual salary of all non-managers is NTD 1.221 million in 2019 (compared to 2018: ↑NTD Communication 11,000) in Taiwan; and the median annual salary of all non-managers is NTD 0.989 million Material Issue Ensure that the sta dormitory environment clean and safe Identi cation 【 】 in 2019 (compared to 2018:↑NTD 9,000) in Taiwan. Sustainability Central China Operation Center: We provide employees the community type accommodations, Development Goals surrounded by all-inclusive living facilities such as food court, supermarkets, salons, health Company Pro le Company Pro le center, banks, libraries and gym, to enrich their lives. PEGATRON monthly average new employee rate in 2019 (%) About PEGATRON East China Operation Center: Free Wi has been installed both in internal and external Financial Performance Monthly Average Rate of Newly Hired Employee Globalization dormitories, so as to improve employees’ satisfaction of the dormitory environment. Arrangement Location Gender Age Award List West China Operation Center: Accommodations of 1, 2, 4 and 8 people rooms for the Sustainable Sustainable employees are provided, and we cooperate with the property management company which is Male Female Under 30 yrs. 31-50 yrs. Over 51 yrs Management Management responsible for routine cleaning, to ensure employees’ accommodations are clean and tidy. Corporate Governance Taiwan 2.4% 5.0% 6.2% 2.1% 4.7% Code of Conduct China 28.0% 24.9% 28.7% 20.0% 0.1% Information Security Mexico 13.0% 8.7% 25.0% 6.7% 3.8% Risk Management Czech 4.1% 3.0% 4.5% 3.1% 2.8% Regulatory Compliance Attracting & Nurturing Talents Responsible Responsible Remark 1: New employee rate (%) = monthly average number of new employees / (sum of Partnership Partnership number of all employee in beginning of each month and end of each month of the Customer Service Employees are our most valuable assets. Cooperation between employees and the company year / 24) Sustainable is the solid basis for our future development. We believe “where there have excellent talents, Remark 2: According to the calculation revision of HR data, the formula of monthly average Supply Chain the company will become an excellent corporation”. Respect of human nature and new employee rate has been revised. Sustainable Sustainable cultivation of talents are our core values. In addition to the establishment of an innovative Environment Environment and diverse culture, we also pay attention to employees’ bene ts and health cares to balance Low Carbon & Energy PEGATRON monthly average turnover rate in 2019 (%) the loads from high performance working and help them to better their daily lives. Greenhouse Gas Sustainable Design Monthly Average Rate of Employee Turnover Environmental Protection Retention & Recruitment Location Gender Age Joyful Work Joyful Work █ Employment We provide a safe and comfortable working environment along with extensive training Male Female Under 30 yrs. 31-50 yrs. Over 51 yrs Relationship courses and career development. PEGATRON works on employee retention by providing Taiwan 2.0% 2.6% 3.2% 1.8% 2.6% Attracting & Nurturing Talent career development opportunities, work-life balance and enhancing our leaders’ China 27.2% 24.8% 27.5% 22.2% 2.0% management abilities. Our action is the same as our business philosophy of “Happy Occupational Mexico 5.6% 8.7% 12.5% 4.4% 0.0% Health & Safety Working, Joyful Living”. Employee Care Czech 10.1% 10.7% 12.8% 8.1% 12.9% We value the contributions of our diverse employees and keep attracting global talents to Social Care Social Care join us by providing a good working environment and development opportunities. We Remark 1: Turnover rate (%) = monthly average number of employee leaving / (sum of number Social Welfare Social Welfare also have industry-academic cooperation and internship programs to recruit good of all employee in beginning of each month and end of each month of the year / 24) Community Community Remark 2: According to the calculation revision of HR data, the formula of monthly average Involvement Involvement talents. We provide employment opportunities for local labors and disabilities to attract turnover rate has been revised. Appendix-Index Appendix-Index diverse talents and achieve corporate social responsibility. GRI Content index GRI Content Index PEGATRON provides professional HR training programs including testing tools as well as a United Nations United Nations East China, Central China and West China operation centers develop competitive salary series of interviewing techniques for supervisors to ensure fairness and equality of Global Compact Global Compact standards based on the minimum wage levels announced by local government, wage recruitment as well as the quality of talents. In addition to professionalism, candidate’s UN Sustainability UN Sustainability guidance and the level of industry wages. We also raise the salary with a certain proportion Development Goals Development Goals ability, value, contribution and ability to blend in with Pegatron’s culture are also for the existing employees to increase their incomes. In addition to the basic wages and Statement Statement important indicators. We have the principles in place for selecting the best talents for the
overtime pays, we set up additional bonuses or allowances, which let our employees be paid far more above local minimum wages, so as to make sure that the salary levels meet the arrangement of company's competitiveness development. Internal performance assessment system covers all employees worldwide, and we announced a clear appraisal rule and assessment process. The work incentives and disincentives are internally disclosed, and we clearly communicate the execution process with all employees. All employees (with the exception of operators and new employees less than 3 months) have twice performance assessments per year to give feedbacks to their performances. Annual employee development plans are set according to assessment results. While assisting employees’ growth and development through performance management, the principle for employee retention of PEGATRON is to respect, cultivate and value our employees. We provide complete training programs and job rotation plans according to employees’ IDP (Individual development plan) analysis results combined with their own career goals. In addition, we have personal development projects for employees to help them to nd their potential abilities and perform better. East China, Central China and West China operation centers develop competitive salary standards based on the minimum wage levels announced by local government, wage guidance and the level of industry wages. We also raise the salary with a certain proportion for the existing employees to increase their incomes. In addition to the basic wages and
40 overtime pays, we set up additional bonuses or allowances, which let our employees be Professional Each unit plans professional competency training programs Editorial Principles Editorial Principles paid far more above local minimum wages, so as to make sure that the salary levels meet competency training based on the needs of professional knowledge and skills. A Word from A Word from the arrangement of company's competitiveness development. the CEO the CEO In order to hand down the internal knowledge, “train the Identi cation & Identi cation & Internal performance assessment system covers all employees worldwide, and we Trainer training trainer” training programs are held every year. And both of Communication Communication announced a clear appraisal rule and assessment process. The work incentives and e-learning and classroom training instructors are included. Social Responsibility disincentives are internally disclosed, and we clearly communicate the execution process Commitment with all employees. All employees (with the exception of operators and new employees General lecture Art, life and management lectures are included. Stakeholder less than 3 months) have twice performance assessments per year to give feedbacks to Communication The development plan for next year will be determined jointly their performances. Annual employee development plans are set according to Material Issue by an employee and his/ her direct supervisor based on the Identi cation assessment results. While assisting employees’ growth and development through IDP discussion result between them. The employee can conduct Sustainability performance management, the principle for employee retention of PEGATRON is to several development ways, including training, reading and Development Goals respect, cultivate and value our employees. We provide complete training programs and the participation or initiation of a project to practice the plan. Company Pro le Company Pro le job rotation plans according to employees’ IDP (Individual development plan) analysis The supervisor will review the performance and give advices About PEGATRON results combined with their own career goals. In addition, we have personal development to the employee. Financial Performance projects for employees to help them to nd their potential abilities and perform better. Globalization Pega e-library The platform o ers employees various types of books to Arrangement borrow and read. Award List Sustainable Sustainable To support the management philosophy of PEGATRON Group, which is “Happy Working, Management Management Employee Training █ Joyful Living”, we expect all employees to work pragmatically and positively, and inspire the Corporate Governance PEGATRON emphasizes career planning and talent development for employees by potential of each other by working through various challenges. Since “talent” is one of the Code of Conduct encouraging them to attend internal and external training programs. Internal training determining factors in corporate competition, we emphasize talent nurturing to encourage Information Security programs include courses for core competency and professional competency our employees to achieve more excellent performances. We continuously invest resources Risk Management development to enhance employees’ capabilities. We also assign employees to attend in nurturing talents and training programs for employees to enhance their core and Regulatory Compliance professional abilities. An environment is built for all employees to develop their core and Responsible Responsible external training programs which include seminars or conferences organized by external Partnership Partnership parties that provide excellent and professional training opportunities. For employees who professional abilities, and help them to achieve job satisfactions while working. We hope all Customer Service change their jobs or roles, the company will provide general, management and employees can balance their lives and work, and also have happiness. Sustainable professional trainings to reduce their insu ciencies, we also appoint mentors to help Supply Chain them to adapt to the working environments in a short period of time. Sustainable Sustainable PEGATRON’s Environment Environment Resources of Description Business Philosophy Low Carbon & Energy Learning Greenhouse Gas Professional Competency Self- On-Job Sustainable Design The online orientation courses, such as corporate introduction, Training Training Development Training •corporate culture, rules, corporate social responsibility system, Environmental • Special Skill Training • New Employee • Business English • Job Rotation Protection quality system and hazardous substances free management for new employees Orientation Online Program • Work Following Joyful Work Joyful Work New employee system, are included to help new employees to know about • Department/ • New Manager • Culture and Arts • Project Drill Employment orientation PEGATRON and adapt to the new work environment Cross Department Orientation Lecture • Mentor Relationship In order to help new employees to be familiar with the Professional Training • Management Skill • PEGATRON's • Deputy Program Attracting & •environment and internal procedures quickly, each new • External Training Training Association Nurturing Talent • Overseas Training • Core Competency • Pega e-Library Occupational employee may have one mentor (eg: Conference, Training Health & Safety Providing general trainings, speci c operation trainings and other exhibition, course, • Talent Development Employee Care Occupational safety etc.) Program for High relevant trainings to employees based on legal requirements. Social Care Social Care and health training Level Managers • General and Social Welfare Social Welfare We plan training programs for employees in each level based Management Lecture Community Community Core competency on their competencies, such as assistant training, manager Involvement Involvement training training and senior manager training. Improve professional With systematical Encourage proactive The Individual Appendix-Index Appendix-Index knowledge and skills learning map, and autonomous development plans GRI Content index GRI Content Index We plan management trainings based on roles and through trainings or employees can learning development with managers’ United Nations United Nations responsibilities of supervisors, such as new manager/senior exercises planned by prepare for their future as well as individual assistances will help Management Global Compact Global Compact manager orientation. The topics include performance managers or Learning careers, develop and interests. employees improve training & Development stimulate their and enhance their UN Sustainability UN Sustainability interview, recruitment interview skills, leadership, communication, Development Goals Development Goals Department. management talents job skills. problem solving and business strategy…etc. Statement Statement and potential. 41 We emphasize the trainings and developments of employees. IDP (Individual Development In addition to the establishment of communication channels, we also pay attention to the Editorial Principles Editorial Principles Plan) has been provided and employees can access their learning resources through a employee health care and workplace safety. To meet local regulatory requirements is a A Word from A Word from series of learning pathways, including learning from model colleagues, reading, and baseline for us and we arrange not only health seminars and checkups, but also implement the CEO the CEO participation of various training courses, such as orientation training, core skills training, suitable health promotion projects for di erent needs of each site’s employees. Furthermore, Identi cation & Identi cation & management training, professional training, new director training, internal lecturer for occupational safety and health issues, we have implemented several management Communication Communication training, all kinds of seminars and external training programs. The training objects include procedures and operational control measures to eliminate the work related incidents. We Social Responsibility Commitment all employees and the annual training plans are set. The employees also can learn through also establish the preparedness and response plans in response to di erent risk levels and Stakeholder online learning system “e-learning” regardless the limitation of time and place. scenarios to strengthen the safety and health management in working environments. Communication Material Issue Identi cation PEGATRON’s IDP participation rates in 2019(%) Sustainability Occupational Safety Development Goals █ Company Pro le Company Pro le Individual development plans in 2019 About PEGATRON Participation Ratio of IDP Management system Financial Performance 【 】 PEGATRON pays attention to the risk assessment and management of our overall Globalization Location Worker Type Arrangement Total Rate operations. We periodically perform CSR related risk identi cations, evaluations, controls Award List General Employee Manager and reviews. We have de ned the procedures of procurement management and Sustainable Sustainable management of changes (MOC) in our PureCSR management procedures. In addition, Management Management Taiwan 79.2 81.5 72.5 each site obeys to its local authority’s requirements to perform work environmental Corporate Governance monitoring and occupational exposure assessments to ensure occupational safety and China 94.6 95.0 93.9 Code of Conduct health of all employees as well as the quality of work environment. For the communication Information Security Remark: of risks, in addition to PureCSR Steering Committee Meetings, PureCSR & EHS Committee Risk Management (1) Participation rates (%) = No. of IDP Participators / No. of employees who should participate IDP Meetings and the employee suggestion boxes, we have put risk identi cation, risk Regulatory Compliance (2) Managers included Frontline Supervisors, Middle and High Level Managers, and Business Directors. management and risk perception as important items in our trainings and regular advocacy. Responsible Responsible (3) Mexico and Czech Plant did not implement the IDP. Partnership Partnership PEGATRON establishes the appropriate occupational safety and health management system Customer Service based on OHSAS 18001 (Occupational Health and Safety Management System), and gets the Sustainable PEGATRON Training Performance in 2019 certi cates by third parties. We promote the safety and health working environment through Supply Chain daily inspections and audits, and conduct CSR training programs in accordance with internal Sustainable Sustainable Environment Environment Average Hours of Training Per Employee (hrs.) procedures and regulatory requirements, including occupational safety and health related Low Carbon & Energy Location General Employee Manager training, corporate social responsibility audit training, introduction of corporate social responsibility management system and other online trainings. Headquarter in Taipei is regarded Greenhouse Gas Male Female Male Female Sustainable Design as the information integration center of global ESH organizations. All EHS related data and 16.5 13.8 Environmental Taiwan 14.2 12.5 information will be aggregated and reported to management level. The dedicated occupational Protection health and safety unit and PureCSR & EHS Committee have been set up in each site. The China 6.9 7.3 8.6 9.5 Joyful Work Joyful Work committee of each site regularly reports the a airs related to PureCSR management system and Employment Mexico 26.2 21.9 43.3 45.1 these issues may also need to be reviewed, coordinated and supervised by Steering Committee Relationship (SC). The results and performances are reported to the General Manager of each sites. Attracting & Czech 2.2 2.0 2.4 2.9 Nurturing Talent Each site has set up annual ESH objectives & targets and various types of management Occupational procedures. The PureCSR & EHS Committee Meetings are regularly convened with Health & Safety Remark: employee representatives to communicate and consult on internal PureCSR and EHS Employee Care (1) Average Training Hours = Total Hours of Trainings / Total Number of Employees who Participated Trainings performances. Each site not only complies with the local regulatory requirements, but also Social Care Social Care (2) Managers included Frontline Supervisors, Middle and High Level Managers, and Business Directors. works out in conformity with international trends, customer requirements and PureCSR Social Welfare Social Welfare policy towards continuous improvement. Community Community Involvement Involvement Appendix-Index Appendix-Index Proportion of employee representatives of PEGATRON in 2019(%) GRI Content index GRI Content Index Occupational Health & Safety United Nations United Nations Location Taiwan China Mexico Czech Global Compact Global Compact UN Sustainability UN Sustainability Identify the Safety & Health Hazards in Workplaces and Control Proportion (%) 46.4% 33.0% 16.7% 50.0% Development Goals Development Goals Proportion (%) = Number of worker representatives in PureCSR & EHS committee / Number of members in Statement Statement the Risks, as well as Build a Healthy Working Culture. PureCSR & EHS committee * 100 % 42 Occupational Hazards risks, as well as the notices of safety works that the contractors have to obey. EHS teams Editorial Principles Editorial Principles 【 】 periodically perform environmental, safety and health (EHS) training programs to A Word from A Word from To prevent occupational hazards and protect employees’ safety & health, we have set contractors. The topics of the training programs include basic knowledge on EHS, working the CEO the CEO dedicated units to conduct the overall planning for addressing environmental and safety environment, hazard noti cation, etc. Identi cation & Identi cation & & health matters. PEGATRON conducts incident investigation and root cause analysis In addition to control the access of contractors via identi cation system, the construction Communication Communication according to the requirements of local regulations and OHSAS 18001 management permit application system is in place to manage all dangerous construction works. The Social Responsibility system. The corresponding corrective actions will be set up and in place to prevent them Commitment high risk works shall be overseen by quali ed personnel at all time and EHS teams shall also from reoccurring. Training programs and noti cations will be provided to all relevant Stakeholder perform the inspections to see if the working scenes can meet our EHS requirements. The employees to enhance their capabilities on emergency responses and lower the e ects of Communication work permits shall be approved prior to doing the special works, including re, working at harms and losses. In the future, management measures will continue to be implemented Material Issue heights, hanging operation or working in a con ned space. The safe working scenario, Identi cation to perfect our working environment. Sustainability such as the quali cation or personnel who conducts the work and the safety status of Development Goals We control the chemicals from the beginning. Safety data sheet (SDS) shall be available workplace shall be con rmed by EHS teams. The works can only start after EHS approval. Company Pro le Company Pro le before the formal use of chemicals. This mechanism can help us to evaluate the hazard About PEGATRON characteristics of chemicals and avoid the use of chemicals with signi cant risks. Through Financial Performance the risk assessment, high risk jobs can be identi ed. The occupational hazards notice card Globalization has been established and the information regarding personal protective equipment list PEGATRON work related injury statistics in 2019 Arrangement and the instructions for use are included in the card which can provide useful information Award List to employees, so as to enhance their knowledge on health and safety. The annual medical Sustainable Sustainable checkups continue to be provided for the employees whose jobs are related to Disabling Disabling Absence Occupa- Work- Management Management injury injury rate (AR) tional related occupational hazardous factors per legal requirements, including pre-employment, in Location Gender Corporate Governance employment and post-employment medical checkups. The reports of these medical frequency Severity disease rate Fatalities Code of Conduct checkups are well managed in a systematic way. Once any abnormal condition is rate (FR) rate (SR) (ODR) Information Security discovered, immediate actions will be taken to ensure the health status of employees. Risk Management Male 1.61 15 0.80 0 0 Taiwan Regulatory Compliance Female 0.61 11 0.66 0 0 Responsible Responsible Partnership Partnership Male 0.93 18 6.98 0 0 Customer Service China Accident Female 0.33 7 1.38 0 0 Sustainable Accident Correction & Investigation & Supply Chain Declaration Prevention Male 0 0 0 0 0 Sustainable Sustainable Analysis Mexico Environment Environment Female 0 0 0 0 0 Low Carbon & Energy Environmental and Safety & Male 0.46 2 3.64 0 0 Greenhouse Gas Czech Health Matter Committee Female 0.46 115 6.76 0 0 Sustainable Design Risk Assessment Meeting Environmental & Case Study (1) Disabling injury frequency rate (FR) = number of disabled people / total working hours*1,000,000 Protection Practice Joyful Work Joyful Work Risk Training (2) Disabling injury severity rate (SR) = number of working days lost / total working hours* 1,000,000 Control Program Self-check & Employment Maintenance (3) Absence rate for work related injury (AR) = number of days absent / total working days* 100 Relationship (4) Occupational disease rate(ODR) = number of people with occupational disease /total working hours* 200,000 Attracting & (5) Minor injuries are not included in this table. Nurturing Talent Occupational Health & Safety Employee Care Emergency Response Social Care Social Care Contractor Management 【 】 Social Welfare Social Welfare 【 】 Sustainable development is the main target of business operations in PEGATRON Group. Community Community PEGATRON not only rules itself to meet the safety requirements on production, but also In response to the business continuity, we have implemented corresponding emergency Involvement Involvement ask all contractors to follow its requirements and applicable local safety regulations. The response procedure in each manufacturing center. We have minimized potential Appendix-Index Appendix-Index quali cations of the contractors shall be reviewed to ensure they can meet the damages and impacts by setting up a response mechanism, and planning as well as GRI Content index GRI Content Index requirements of PEGATRON’s contractor management procedure. The environmental, periodic training programs and drills. United Nations United Nations safety and health risks, rules and regulations shall be communicated to the contractors Global Compact Global Compact prior to working in our facilities. Besides, the safety production agreements shall be signed PEGATRON has issued preparedness and response procedure and established the UN Sustainability UN Sustainability by the contractors while they sign the contracts with us. The contents of the agreements Development Goals Development Goals emergency noti cation mechanism in each site to reduce the risks of re, include the procedures regarding signi cant environmental aspects and safety & health Statement Statement typhoon, ood, earthquake, chemical leakage and liquid gas leakage. We improve
the abilities of our emergency response teams and enhance the awareness of all employees through periodic training programs and drills. Take HQ’s implementa- tion for example, in addition to install Automated External De brillator (AED), we also strengthen the trainings of rst aid personnel, as well as establish the proce- dure to improve the capabilities of relevant responsible personnel on rst aid. The emergency response plans of Central China Operation Center include the re escape plan, special machinery and equipment contingency plan, chemical spill contingency plan, con ned space rescue plan and food poisoning contingency plan. East China Operation Center also establishes a number of contingency plans and cooperates with the local government's response mechanism. Sustainable development is the main target of business operations in PEGATRON Group. In response to the business continuity, we have implemented corresponding emergency response procedure in each manufacturing center. We have minimized potential damages and impacts by setting up a response mechanism, and planning as well as periodic training programs and drills.
PEGATRON has issued preparedness and response procedure and established the emergency noti cation mechanism in each site to reduce the risks of re, typhoon, ood, earthquake, chemical leakage and liquid gas leakage. We improve
43 the abilities of our emergency response teams and enhance the awareness of all pre-pregnant, pregnant and post-pregnant, we provide di erent health promotion Editorial Principles Editorial Principles employees through periodic training programs and drills. Take HQ’s implementa- measures for them to protect their bodies and mental health. A Word from A Word from tion for example, in addition to install Automated External De brillator (AED), we For the facilities in HQ, we set up a health care room with professional doctors. According the CEO the CEO also strengthen the trainings of rst aid personnel, as well as establish the proce- to the health care system, employees can use health insurance cards to see doctors. We Identi cation & Identi cation & dure to improve the capabilities of relevant responsible personnel on rst aid. The Communication Communication encourage breastfeeding and also set up a comfortable nursing room for female emergency response plans of Central China Operation Center include the re Social Responsibility employees feeding the breast milk in the workplace. We also have massage rooms to escape plan, special machinery and equipment contingency plan, chemical spill Commitment provide sta s relief from stress. The health website is built as a platform to promote health contingency plan, con ned space rescue plan and food poisoning contingency Stakeholder activities and provide employees related online information as well. Communication plan. East China Operation Center also establishes a number of contingency plans Material Issue and cooperates with the local government's response mechanism. Identi cation Sustainability Development Goals Company Pro le Company Pro le Evacuation drills and emergency training programs by 2019 Health Promotion Activity in HQ About PEGATRON Region in 2019 Financial Performance HQ Topic Participation Globalization Arrangement Location Taiwan China Mexico Czech 1 Ladder points to go healthy and fun 9,723 Award List 2 Massage service 4,115 Sustainable Sustainable Times of evacuation drill 12 242 1 2 3 In uenza vaccination 506 Management Management Times of emergency response training 4 Framingham risk score: high risk ethnic group 10 Corporate Governance 23 92 1 2 5 Recheck for abnormal physical examination report Code of Conduct 121 Information Security We establish the epidemic prevention group and develop the infectious disease reporting Risk Management mechanism to monitor the epidemic condition, integrate the goods and materials and Regulatory Compliance adjust the control procedure based on the levels of epidemic conditions. Once the critical Responsible Responsible infectious disease occurs, the reporting mechanism can reduce the chance of infection Partnership Partnership and prevent the negative impacts on business operations. 2019 Health Promotion Lecture in HQ Customer Service Sustainable Topic Theme Supply Chain Sustainable Sustainable Cardiovascular Care Cardiovascular crisis Environment Environment Low Carbon & Energy Occupational Health Health Lecture How much do you know about dementia Greenhouse Gas █ Sustainable Design The health care programs for employees in PEGATRON are given based on the needs of Environmental employees and the features of each site. We provide four dimensions of projects Protection Joyful Work Joyful Work integrating work and life to promote employees’ health and improve their lives quality, including health management, health promotion, occupational hygiene and employee Employment Relationship assistance project (EAP). In order to improve the working environment proactively, the Attracting & cross-functional team was established and the project for the employees who may have Nurturing Talent potential heart diseases was also provided. By analysis of their workloads, the health Occupational instructions can be given accordingly. Through the projects, we can make the strategy of Health & Safety occupational disease prevention be practically implemented, and can promote the Employee Care workplace health in the company. Social Care Social Care Social Welfare Social Welfare For the employees’ health management, each manufacturing center has set up the Community Community In rmary to provide outpatient services by professional physicians. Also, several health Involvement Involvement checkups are conducted as regulated. The results of the health checkups are classi ed Appendix-Index Appendix-Index into di erent levels for follow up actions, which are regulated by the local authorities. We GRI Content index GRI Content Index have promoted many health related activities, including weight management, stair United Nations United Nations Global Compact Global Compact climbing activity, ergonomic program, relaxation massage, vaccine injection and health UN Sustainability UN Sustainability lecture course. Furthermore, for promotion of maternity protection, the nursing room has Development Goals Development Goals been built in every operation center and manufacturing center which can provide Statement Statement employees to use when needed. For pregnant employees in di erent stages, including 44 2019 Health Promotion Activity Editorial Principles Editorial Principles Taoyuan Manufacturing Center A Word from A Word from 【 】 the CEO the CEO Identi cation & Identi cation & TY Topic Participation Communication Communication 1 Medical checkup upgrade project 105 Social Responsibility 66 Commitment 2 Recheck for abnormal cases in annual medical checkup activity 3 Training for getting more understanding on ergonomic hazardous factors 19 Stakeholder Communication 4 Health promotion advocacy and training course 12 Material Issue Identi cation Sustainability Development Goals Company Pro le Company Pro le About PEGATRON Health Promotion Lecture in PCQ Financial Performance 【 】 Globalization Arrangement PCQ Topic Participation Award List 1 Measles lecture for pregnant employees 17 Sustainable Sustainable Management Management 2 Occupational health and seasonal disease lectures 41 Corporate Governance 3 Health lectures All employees Code of Conduct Health Promotion Lecture in PSZ Information Security 【 】 Risk Management PSZ Topic Participation Regulatory Compliance 1 Everybody learns rst aid 532 Responsible Responsible Partnership Partnership 2 Lecture for health 63 3 The prevention of occupational diseases advocacy and training course 107 Customer Service Sustainable Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Greenhouse Gas Sustainable Design Environmental Protection Czech Manufacturing Center Joyful Work Joyful Work 【 】 Employment Relationship PCZ Topic Participation Attracting & Nurturing Talent Health Promotion Lecture in PSH 1 Vitamin packages providing All employees Occupational 【 】 2 Alco gels hand sanitizer available All employees Health & Safety PSH Topic Participation 3 Fruit Day (fresh fruits for free) All employees Employee Care 1 Promotion of health advocacy and lecture 288 4 Blood pressure measuring device service All employees Social Care Social Care Social Welfare Social Welfare 2 The occupational health training course 475 Community Community 3 Automated External De brillators (AED) training 59 Involvement Involvement Promotion of smoking prevention and cessation activity, and evaluating 4 65 Appendix-Index Appendix-Index the e cacy of smoking cessation GRI Content index GRI Content Index 5 Stress and emotion management lecture 150 United Nations United Nations Global Compact Global Compact 6 Handwashing activity: preventing illness 120 UN Sustainability UN Sustainability 7 Annually health checkup project for managers 283 Development Goals Development Goals 8 Annually health checkup project for married female employees (non-pregnant) 95 Statement Statement 45 Mexico Manufacturing Center Food testing results process: Editorial Principles Editorial Principles 【 】 A Word from A Word from PMX Topic Participation the CEO the CEO Identi cation & Identi cation & 1 Promote health care: Child cancer 82 Testing result Communication Communication 2 Promote health care: Physical health 69 Social Responsibility OK 3 Early detection of diabetes program 62 NG Commitment 4 Promote health care: Visual health 76 Stakeholder Food management Communication 5 Promote health care: Alcoholism 59 Dept. Material Issue 6 Early detection of high blood pressure program 21 Identi cation Sustainability Development Goals Abnormal Notice Company Pro le Company Pro le About PEGATRON Supplier Financial Performance Food safety control - food testing laboratory con rmation Globalization 【 】 Cooked food/dishes The ingredients Arrangement The food safety issues are endlessly in recent years. In order to ensure meals safety for Award List employees, food testing laboratories (FTL) have been set up in Central China and East Sustainable Sustainable Management Management China Operation Centers successively. In Central China Operation Center, FTL has Improvement Inventory Checking Corporate Governance established since 2008 and hired the persons who were certi ed by the ministry of human resources and social security to manage the food, tableware, drinking water and Code of Conduct ingredients tests. The FTL has biochemical incubators, high-pressure steam sterilizer, Information Security NG Abnormal Replaced with mufti-functional food safety detector, and so on. There are 46 food testing items currently. Con rm the Risk Management Item Return Quali ed Substitution We will increase to test more high risk items and promote the food safety management improvement Regulatory Compliance system to other sites continuously in the future. Each site will also follow ISO/IEC17025 to Responsible Responsible OK Partnership Partnership manage laboratory operation, and strive for a better service so that employees can eat Customer Service healthy and relieved. Manager Signed Sustainable Supply Chain Sustainable Sustainable Environment Environment Monthly Deduction Low Carbon & Energy Statistics Greenhouse Gas Sustainable Design Annual Environmental Assessment Protection Joyful Work Joyful Work Employment Closed Relationship Attracting & Nurturing Talent Occupational Health & Safety Employee Care Social Care Social Care Social Welfare Social Welfare Community Community Involvement Involvement Appendix-Index Appendix-Index GRI Content index GRI Content Index United Nations United Nations Global Compact Global Compact UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement 46 1. Employee Service Center ([email protected]) Editorial Principles Editorial Principles Employee Care Central China 2. Employee Representative Meeting A Word from A Word from Operation 3. Consulting Service Center for New Employees 230 the CEO the CEO Center 4. Contact window for employee relationship Identi cation & Identi cation & We Listen to the Voices from Employees to Build a Big Family together. 5. Meeting with Factory Director Communication Communication 1. 17885 Hotline (023-8850-9888#17885) Social Responsibility 2. i-Pega box ([email protected])) Commitment Our employees are encouraged to provide their suggestions and opinions through 3. Email for employee relationship Stakeholder various channels that have been set up for them. We believe the company’s culture and West China 4. Online Service Platform Operation 857 Communication work atmosphere can be improved by hearing the voices of our employees. In addition to 5. HR service center Material Issue Center 6. Meeting with factory teacher Identi cation setting up communication channels, we emphasize the health care and occupational 7. Meeting with Factory Director and General Manager Sustainability safety of our employees. PEGATRON considers our sta s to be very important assets. In 8. Employee and Management Meeting Development Goals order to let employees have productive contribution, PEGATRON pays attention to the Mexico Company Pro le Company Pro le work-life balance of our employees. We provide timely care and help for employees, while 1. Physical Suggestion Box Manufacturing 2. Email Box ([email protected]) 0 About PEGATRON enhancing our company’s productivity as well as reducing employee turnover rate. Center Financial Performance Czech 1. Physical Suggestion Box Globalization Manufacturing 2. Email Box ([email protected]) 32 Arrangement Center 3. Canteen Committee Award List Communication Channel Sustainable Sustainable █ Management Management Corporate Governance The company emphasizes the employee welfares and caring, harmonious relationship Code of Conduct and especially employees’ opinions. Employees can communicate with the management Classi cation table of PEGATRON employee Information Security through suggestion boxes, meetings and email boxes to express their feelings and raise communication types in 2019 : Risk Management questions so as to maintain the good relationship between labors and management. Regulatory Compliance Responsible Responsible PEGATRON has set up multiple communication channels including the employees’ HQ & Taoyuan Manufacturing Center Partnership Partnership suggestion box (i-PEGA BOX), departmental service hotlines, EAP (Employee Occupational & Health 9% Customer Service Assistant Program) and so on. There are also counseling hotlines, health hotlines, and ● Human Resource 7% Sustainable a grievance mechanism in place at our sites to e ectively help to solve employees’ ● Supply Chain Computer 6% problems. Employees can choose di erent channels depending on their needs. For ● Sustainable Sustainable Environment 25% Environment Environment example, at Central China Operation Center, it has a variety of communication ● channels for employees, including “Big Sister Studio”, “Recruitment Counseling Administration 43% Low Carbon & Energy ● O ce”, “Living Area Employee Service Center”, “Employee Representative Meeting”, Others % Greenhouse Gas ● 10 Sustainable Design “Employee Regular Interview” and so on, so as to timely and e ective solve their Environmental problems. The purpose of “Big Sister Studio” is "service with care , care with love ", Protection providing not only a variety of communication channels (WeChat, QQ, hotline, email Central China Operation Center ([email protected]), mailbox, message, interview), but also psychological Joyful Work Joyful Work Occupational & Health 7% Employment counseling, personality analysis, career planning and other services, so as to promote ● Human Resource 10% Relationship the healthy development and enhance the sense of belonging of employees. ● Computer 0% Attracting & ● Nurturing Talent Environment 4% Occupational ● Administration % Health & Safety ● 48 PEGATRON Employee Communication Channels in 2019 Others Employee Care ● 31% Social Care Social Care Social Welfare Social Welfare Location Communication Channel Number Community Community East China Operation Center HQ & Taoyuan 1. I-PEGA ([email protected]) Involvement Involvement Occupational & Health Manufacturing 2. Harassment Mailbox ([email protected]) 39% Appendix-Index Appendix-Index 186 ● Center 3. Suggestion Box Human Resource 14% GRI Content index GRI Content Index ● 4. Business Ethics Box ([email protected] ) Computer 1% United Nations United Nations ● Global Compact Global Compact East China 1. Employee Service Center Environment 13% Operation 2. Help Center ([email protected]) 116 ● UN Sustainability UN Sustainability Administration 32% Development Goals Development Goals Center 3. Union ● Others % Statement Statement ● 1 47 West China Operation Center Czech Manufacturing Center Channels for Caring Employees : Editorial Principles Editorial Principles Human 85% Occupational & Health 6% A Word from A Word from ● ● Location Channel for caring employee Resource Human Resource 38% the CEO the CEO ● Admini- 15% Identi cation & Identi cation & ● Environment 9% HQ & Taoyuan Employee Mental Health Hotline, Regular Sta Interview, Employee Assistance Communication Communication stration ● Administration 31% ManufacturingCenter Program(EAP), Suggestion Box, Harassment Grievance Email Social Responsibility ● Others Hi_Sister Workshop, Employee Representative Meeting, Counseling Service Commitment 16% Central China ● Center for New Employees, Counseling Window for Employee Relationship, Operation Center Stakeholder Meeting with Factory Director Communication East China Material Issue Employee Service Center, Help Center, Union, Mentor, Suggestion Box Identi cation Operation Center Sustainability Hotline, Email for Employee Relationship, Online Service Platform, HR Service Development Goals West China Operation Center Center, Meeting with the Teachers Stationed in the Factory, Meeting with Company Pro le Company Pro le In order to provide our employees with a better understanding of the company’s Factory Director and General Manager About PEGATRON operating status and directions, our CEO holds face-to-face CEO dating meetings regularly Mexico Suggestion Box, Employee Interview Financial Performance every year. This helps our employees to have a more in-depth understanding of the Manufacturing Center Globalization company’s decision making processes. We held 3 Co ee Talk meetings in 2019. Czech Suggestion Box, Regular Department Meeting, Employee Survey Arrangement Manufacturing Center Award List Sustainable Sustainable PEGA Talk‧Best Communication Management Management Corporate Governance Employee welfare Code of Conduct █ Information Security Having a Talk “Joyful Working; Happy Living” is PEGATRON’s philosophy to employees. We endeavor to Risk Management express our cares to all employees. We hope our employees can focus more on family Regulatory Compliance with CEO during spare time and have the rights of unpaid parental leaves for raising children and Responsible Responsible the retirement program. Welfare measures of PEGATRON are divided into two parts, Partnership Partnership Let’s have some tea. bene ts provided by the company and by welfare committee. Every bene t is disclosed Customer Service through the announcement, company website or email, so that employees are aware of Sustainable Supply Chain the bene ts and way of application. We provide labor, health and group insurances in Sustainable Sustainable Taiwan, and regularly hold cultural lectures. The leave and attendance rule is also better or Environment Environment meets local regulations. Low Carbon & Energy Greenhouse Gas Welfare committee provides scholarships for employees' children every year to encourage Sustainable Design them study hard. Our welfare committee also provides various employee bene ts Environmental Employee bene ts are discussed in our quarterly employee welfare committee meetings. schemes for options such as travel, medical care, recreation and so on. The year-end party, Protection The employee representatives are responsible for expressing opinions of our employees family day, arts and culture activities and various team competitions are all for employees’ Joyful Work Joyful Work to communicate with the company. choices. We hope our employees can focus more on family during spare time. A more Employment favorable consumer channel is provided to colleagues by our welfare committee, and our Relationship PEGATRON has implemented many mental health programs in each manufacturing center special shops cover 11 types of dining, sports, learning, leisure, arts, home, education etc., Attracting & to provide calm and relaxing channels for employees. We also set up special psychological Nurturing Talent so as to o er preferential treatments for employees. consultation rooms to assist employees to solve the di culties they face. Occupational To promote teamwork among colleagues, HQ held planting activities which let Health & Safety We o er many types of assistance care activities for our employees, including consulting colleagues have fun at planting on the roofs. In addition to the bene t of greenery, the Employee Care hotlines, counseling rooms, suggestion boxes and regular interviews. PEGATRON also process of planting also increases environmental awareness. We regularly invite experts to Social Care Social Care combines social workers and psychologists in a special cooperation model to provide teach colleagues about planting techniques. The activities have been held twice per year Social Welfare Social Welfare psychological counseling EAP (Employee Assistance Programs) service. We select suitable per site and around 700 people participated in each planting shift within 2 sites. We have Community Community Involvement Involvement teachers and provide psychological consultation services based on employees’ issues and a lottery system due to the limitation of the cultivation area, and the number of Appendix-Index Appendix-Index help them to solve their psychological problems. participants of each cycle is around 400 people. GRI Content index GRI Content Index We provide an integrated welfare system and treat all employees equally on all sites. United Nations United Nations Global Compact Global Compact Welfares in PEGATRON are divided to bene ts, incentives, gifts and events to express our UN Sustainability UN Sustainability group’s willing of “Joyful Working; Happy living ". Some welfares might be di erent Development Goals Development Goals according to di erent workplaces, but all welfare programs are in comply with or better Statement Statement than the requirements of local regulations. 48
Editorial Principles Editorial Principles A Word from A Word from the CEO the CEO Identi cation & Identi cation & Communication Communication Social Responsibility Commitment Stakeholder Communication Material Issue Identi cation Sustainability Development Goals The Central China Operation Center regularly organized cultural activities to enrich the Company Pro le Company Pro le lives of employees. “EHS Month Activity” was initiated for the purpose of encouraging About PEGATRON employees to learn and contact things which are di erent from their works and get more Financial Performance understanding on CSR. There were around 522 people and 27,900 people who joined Globalization Arrangement the EHS Month Activity in the Central China and East China Operation Center separately Award List in 2019. Sustainable Sustainable Management Management Corporate Governance Code of Conduct Information Security Employee Bene ts at each site: Risk Management Regulatory Compliance Location Item Responsible Responsible Partnership Partnership HQ & Taoyuan birthday gift, festival bonus, meal allowance, voucher/welfare, Customer Service Manufacturing Center reunion day, family day Sustainable marriage gift, fertility gift, funeral condolence, birthday gift, Supply Chain East China Operation Center emergency assistance payment Sustainable Sustainable Environment Environment marriage gift, fertility gift, funeral condolence, birthday gift, Central China Operation Center emergency assistance payment, meal allowance, retirement Low Carbon & Energy greeting activity, family day Greenhouse Gas West China Operation Center marriage gift, fertility gift, funeral condolence, sunshine fund, Sustainable Design meal allowance, subsidy for end of year party Environmental Protection meal allowance, savings fund, Christmas bonus, perfect Mexico Manufacturing Center Joyful Work Joyful Work attendance bonus, Medical Insurance (ADM) Employment Czech Manufacturing Center pension insurance, meal allowance Relationship Attracting & Nurturing Talent Occupational For those who choose the new pension fund system, PEGATRON allocates 6% of Health & Safety employees’ monthly salaries as pensions based on “Labor Pension Act for new system" Employee Care and put the pensions in personal retirement accounts established by the Bureau of Labor Social Care Social Care Insurance. Employees can make voluntary contributions from 0% to 6% for their pensions Social Welfare Social Welfare and the voluntary contributions will be fully deducted from their annual personal Community Community consolidated income tax. For those who choose the old pension fund system, PEGATRON Involvement Involvement allocates 2% of employees’ monthly salaries as pensions based on "Labor Standards Law Appendix-Index Appendix-Index for old system " and put the pensions in old pension fund system accounts to meet the GRI Content index GRI Content Index retirement needs of relevant employees. Please refer to PEGATRON’s 2019 Financial United Nations United Nations Global Compact Global Compact Report for pensions. UN Sustainability UN Sustainability Development Goals Development Goals http://www.pegatroncorp.com/investorRelation/annualReports/lang/en_US Statement Statement Navigate Social Care the Work with local communities to Future develop appropriate welfare activities. 50 2. Invoice donation activities Social Welfare Editorial Principles Editorial Principles 3. Blood donation activities A Word from A Word from the CEO the CEO Identi cation & Identi cation & More than Technology, We Irrigate the Society with Culture and Arts. Communication Communication Social Responsibility We fully implement social responsibility from the inside out to understand the true needs Commitment from di erent parties, and positively encourage all employees around the world to follow. For Stakeholder the planning of activities, community participations and caring actions, we start internally and Communication promote them to neighboring communities, then extend them to where it is most needed. Material Issue Identi cation PEGATRON actively participates in public events, sponsors many kinds of organizations, Sustainability and commits to care for the weak and poor. We continue to pay attention to the Development Goals reading and digital di erence problem of children in remote area of the eastern Company Pro le Company Pro le countryside in Taiwan, so that we provide necessary materials and equipment for them. About PEGATRON PEGATRON also involved in cultural development, arts events and sports events in Financial Performance recent years, and sponsored activities in music, drama, dancing as well as literary Globalization PEGATRON Central China Operation Center (PSZ) Arrangement creation, academic seminar and health promotion to ful ll our corporate social 【 】 Award List responsibility commitment. The Central China Operations Center, in addition to responding to the group charity Sustainable Sustainable activities, continues to dedicate in long-term public welfare activities by way of Management Management A public welfare club in Headquarter, Happiness Philosophy Club, irregularly holds lectures and activities about ecological preservation, humanistic care and charity donation. Through contributing to the local community. There were 329 people participated in the event of Corporate Governance blood donation in 2019. Code of Conduct this way, our colleagues have the opportunity to more understand the society and Information Security environment, and then serve the community. Risk Management The welfare and donation activities held by Happiness Philosophy Club in 2019 include: Regulatory Compliance Responsible Responsible 1. The donation of 5 boxes of books to an elementary school in a rural area in Taiwan. Partnership Partnership 2. Bookshelves donated to ASUS foundation and shoes to step30.org activities. Customer Service Sustainable 3. Join the donation activity by NPO in Taiwan, and donate 36 boxes of hygiene Supply Chain products for abandoned babies. Sustainable Sustainable Environment Environment 4. Involve in the donation activity for supporting “Kuentai Happiness Rural Areas” around Low Carbon & Energy ve years in Taiwan. In 2019, the cash was donation NTD 51,500, which could help about Greenhouse Gas 60 students for digital learning, for supporting tablet procurement in 2 elementary Sustainable Design schools in rural area. Through the digital learning, we hope the students would ip the Environmental Protection competitiveness, and closing urban-rural digital gap. Joyful Work Joyful Work Employment Relationship Attracting & Nurturing Talent Occupational Community Involvement Health & Safety Employee Care PEGATRON East China Operation Center (PSH) Social Care Social Care Hear the Voices of Residents and Put Resources Right. 【 】 Social Welfare Our East China Operation Center held and participated in a lot of local public welfare Community All our major operation centers and manufacturing centers are also involved in long-term activities. Throughout the activities, we expected to attract public attention on Involvement local public welfare activities to make contributions to local societies. environmental protection as well as the welfare of disadvantaged groups. Appendix-Index Appendix-Index GRI Content index GRI Content Index These activities include: United Nations United Nations 1. Activity on Tree Planting Day: There were 16 red plum trees planted by 49 people in the Global Compact Global Compact PEGATRON Headquarters and Taoyuan Manufacturing Center campus during the activity. UN Sustainability UN Sustainability 【 】 Development Goals Development Goals 1. Electronic waste recycling activities 2. Blood donation: There were 510 people joined the event. Statement Statement 51 3. Environmental volunteers: This activity aimed to clean up the trashes on the roads near Editorial Principles Editorial Principles the campus. There were 60 people joined the event in total. A Word from A Word from the CEO the CEO 4. Clothes donation activity: PSH supported the activity titled as “Good from a Family” and Identi cation & Identi cation & donated clothes and shoes for China Junior Children's Fund. Communication Communication 5. Tra c volunteers: There were 30 people joined the event. Social Responsibility Commitment Stakeholder Communication Material Issue Identi cation Sustainability Development Goals Company Pro le Company Pro le About PEGATRON Financial Performance Globalization Arrangement Award List Sustainable Sustainable Management Management PEGATRON West China Operation Center (PCQ) Corporate Governance 【 】 Code of Conduct The West China Operation Center continues to organize charity activities to respond the Information Security needs of disadvantaged groups in local community. The site held planting activity on Tree Risk Management Planting Day of 2019. There were 50 people joined the event. Regulatory Compliance Responsible Responsible Partnership Partnership Customer Service Sustainable Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Greenhouse Gas Sustainable Design Environmental Protection Joyful Work Joyful Work Employment PEGATRON Czech Manufacturing Center (PCZ) Relationship 【 】 Attracting & 1. Financial support for local sport clubs. Nurturing Talent Occupational 2. Financial support for the welfare agencies for the physically and mentally disabled Health & Safety Employee Care 3. Financial support of books for children Social Care Social Care Social Welfare Community Involvement Appendix-Index Appendix-Index GRI Content index GRI Content Index United Nations United Nations Global Compact Global Compact UN Sustainability UN Sustainability Development Goals Development Goals Statement Statement Navigate Appendix- Index the Future 53 102-44 Key topics and concerns raised 5-8 Editorial Principles Editorial Principles GRI Standards Index 102-45 Entities included in the consolidated nancial / Please refer to the A Word from A Word from statements 2019 Annual Report the CEO the CEO for more detail. Identi cation & Identi cation & (http://www.pegatro Communication Communication General Disclosures ncorp.com/investorRe Social Responsibility █ lation/annualReports/ Commitment GRI Standards Disclosure Page Omission lang/en_US) Stakeholder Communication 102-1 Name of the organization 11 102-46 De ning report content and topic Boundaries 7 Material Issue 102-2 Activities, brands, products, and services 11 102-47 List of material topics 7 Identi cation There is no Sustainability 102-3 Location of headquarters 11 102-48 Restatements of information / Development Goals restatements of 102-4 Location of operations 12 information to Company Pro le Company Pro le previous reports About PEGATRON 102-5 Ownership and legal form 11 102-49 Changes in reporting 7 The material issues Financial Performance 102-6 Markets served 11 compared with 2018 Globalization year, materials and Arrangement 102-7 Scale of the organization 11, 12 Please refer to the 2019 Annual Report socioeconomic Award List for detailed quantity compliance were new Sustainable Sustainable of products and in while Management Management service. (http://ww- anti-corruption and Corporate Governance w.pegatroncorp.com/- con ict mineral was Code of Conduct investorRelation/an- excluded. Information Security nualRe- 102-50 Reporting period 1 ports/lang/en_US) Risk Management 102-51 Date of most recent report 1 Regulatory Compliance 102-8 Information on employees and other workers GRI 102: 37 102-52 Reporting cycle 1 Responsible Responsible General Partnership Partnership 102-9 Supply chain 12, 22 Disclosures 102-53 Contact point for questions regarding the report 1 Customer Service 102-10 Signi cant changes to the organization and its There were no 2016 / 102-54 Claims of reporting in accordance with the GRI Standards 1 Sustainable supply chain signi cant changes to the organization and Supply Chain 102-55 GRI content index 53-55 Sustainable Sustainable its supply chain in Environment Environment 2019. 102-56 External assurance 1, 57, 58 Low Carbon & Energy 102-11 Precautionary Principle or approach 18 For the precautionary Greenhouse Gas purpose of decreasing impact of economic, Sustainable Design environment and Material topics Environmental society, the █ Protection organization Joyful Work Joyful Work implement the risk Economic- Economic performance Employment assessment before GRI Standards Disclosure Page Omission Relationship introduce new Attracting & products, implement 103-1 Explanation of the material topic and its Boundary 11 Nurturing Talent new operation plan GRI 103: Occupational and so on. Management 103-2 The management approach and its components 11 Health & Safety 102-12 External initiatives 5 Approach 2016 103-3 Evaluation of the management approach Employee Care 11
Social Care Social Care 102-13 Membership of associations 5 GRI 201: Economic 201-2 Financial implications and other risks and 27
Social Welfare 102-14 Statement from senior decision-maker 2 Performance 2016 opportunities due to climate change
Community 102-16 Values, principles, standards, and norms of behavior 16 Involvement Economic- Market presence Appendix-Index Appendix-Index 102-18 Governance structure 15
GRI Content Index GRI Standards Disclosure Page Omission 102-40 List of stakeholder groups 5 United Nations Global Compact 102-41 Collective bargaining agreements 38 GRI 103: 103-1 Explanation of the material topic and its Boundary 37, 39 UN Sustainability 102-42 Identifying and selecting stakeholders 5 Management 103-2 The management approach and its components 37, 39 Development Goals Approach 2016 Statement 102-43 Approach to stakeholder engagement 5, 6 103-3 Evaluation of the management approach 37, 39 54 GRI 202: Market 202-2 Proportion of senior management hired from the 37 Environmental -E uents and waste Editorial Principles Editorial Principles local community Presence2016 GRI Standards Disclosure Page Omission A Word from A Word from the CEO the CEO GRI 103: 103-1 Explanation of the material topic and its Boundary 33, 34 Identi cation & Identi cation & Communication Communication Economic- Ethics and integrity Management 103-2 The management approach and its components 33, 34 Approach 2016 Social Responsibility 103-3 Evaluation of the management approach 33, 34 Commitment GRI Standards Disclosure Page Omission Stakeholder 103-1 Explanation of the material topic and its Boundary GRI 306: 306-2 Waste by type and disposal method 34 Communication GRI 103: 16 E uents and 306-3 Signi cant spills / No spill event Material Issue Management 103-2 The management approach and its components 16 Identi cation Waste2016 occurred. Approach 2016 103-3 Evaluation of the management approach Sustainability 16 Development Goals GRI 205: Anti 205-1 Operations assessed for risks related to corruption Company Pro le Company Pro le 16, 18 Corruption2016 Environmental - Environmental compliance About PEGATRON 205-3 Con rmed incidents of corruption and actions taken 16 Financial Performance GRI Standards Disclosure Page Omission Globalization 103-1 Explanation of the material topic and its Boundary 33 Arrangement Environmental-Materials GRI 103: Award List Management 103-2 The management approach and its components 33 GRI Standards Disclosure Page Omission Sustainable Sustainable Approach 2016 103-3 Evaluation of the management approach Management Management 33 GRI 103: 103-1 Explanation of the material topic and its Boundary 30 Corporate Governance GRI 307: 307-1 Non-compliance with environmental laws 33 Management Code of Conduct 103-2 The management approach and its components 30 Environmental and regulations Approach 2016 Information Security 103-3 Evaluation of the management approach 30 Compliance2016 Risk Management GRI 301: 301-3 Reclaimed products and their packaging materials Related product Regulatory Compliance / Materials 2016 recycling programs are Responsible Responsible requested by customers Social-Employment Partnership Partnership Customer Service GRI Standards Disclosure Page Omission Sustainable Supply Chain Environmental-Energy GRI 103: 103-1 Explanation of the material topic and its Boundary 37 Sustainable Sustainable GRI Standards Disclosure Page Omission Management 103-2 The management approach and its components 37 Environment Environment Approach 2016 103-3 Evaluation of the management approach Low Carbon & Energy GRI 103: 103-1 Explanation of the material topic and its Boundary 27 37 Greenhouse Gas Management 103-2 The management approach and its components 27 GRI 401: 401-1 New employee hires and employee turnover 39 Sustainable Design Approach 2016 103-3 Evaluation of the management approach Employment 2016 401-2 Bene ts provided to full-time employees that are 47 Environmental 27 not provided to temporary or part-time employees Protection 302-1 Energy consumption within the organization 28, 29 Joyful Work Joyful Work GRI 302: Energy intensity Employment Energy 2016 302-3 28 Relationship 302-4 Reduction of energy consumption 28 Social-Labor management relations Attracting & Nurturing Talent GRI Standards Disclosure Page Omission Occupational Health & Safety Environmental -Emissions GRI 103: 103-1 Explanation of the material topic and its Boundary 46 Employee Care GRI Standards Disclosure Page Omission Management 103-2 The management approach and its components 46 Social Care Social Care Approach 2016 103-3 Evaluation of the management approach 46 Social Welfare GRI 103: 103-1 Explanation of the material topic and its Boundary 29 Community Management 103-2 The management approach and its components 29 GRI 402: Labor 402-1 Minimum notice periods regarding operational 38 Involvement Management changes Approach 2016 103-3 Evaluation of the management approach Appendix-Index Appendix-Index 29 Relations2016 GRI Content Index 305-1 Direct (Scope 1) GHG emissions 29 United Nations GRI 305: Global Compact Emissions2016 305-2 Energy indirect (Scope 2) GHG emissions 29 UN Sustainability 305-4 GHG emissions intensity 29 Development Goals Statement 305-5 Reduction of GHG emissions 29 55 Social-Occupational health and safety Editorial Principles Editorial Principles United Nations Global Compact GRI Standards Disclosure Page Omission A Word from A Word from the CEO the CEO GRI 103: 103-1 Explanation of the material topic and its Boundary 41 Identi cation & Identi cation & Communication Communication Management 103-2 The management approach and its components 41 Category Principle Page No. Approach 2016 Social Responsibility 103-3 Evaluation of the management approach 41 Commitment Businesses should support and respect the protection of internationally GRI 403: 41 proclaimed human rights. 38 Stakeholder 403-1 Workers representation in formal joint Human Communication Occupational Health management–worker health and safety committees Rights Businesses should make sure that they are not complicit in human Material Issue and Safety2016 38 Identi cation rights abuses. Sustainability Businesses should uphold the freedom of association and the e ective Development Goals recognition of the right to collective bargaining. 38 Company Pro le Company Pro le Social-Training and education About PEGATRON Businesses should uphold the elimination of all forms of forced and GRI Standards Disclosure Page Omission Labor 38 Financial Performance compulsory labor. Globalization GRI 103: 103-1 Explanation of the material topic and its Boundary 40 Businesses should uphold the e ective abolition of child labor. 38 Arrangement Management Award List 103-2 The management approach and its components 40 Businesses should uphold the elimination of discrimination in respect Approach 2016 38 Sustainable Sustainable 103-3 Evaluation of the management approach 40 of employment and occupation. Management Management Businesses should support a precautionary approach to 404-1 Average hours of training per year per employee 41 30-32 Corporate Governance GRI 404: environmental challenges. Code of Conduct Training 404-2 Programs for upgrading employee skills and 40 Information Security and Education2016 Businesses should undertake initiatives to promote greater transition assistance programs Environment 33-35 Risk Management environmental responsibility. Regulatory Compliance Businesses should encourage the development and discussion of Responsible Responsible environmentally friendly technologies. 30-32 Partnership Partnership Social-Socioeconomic compliance Anti- Businesses should work against corruption in all its forms, including Customer Service GRI Standards Disclosure Page Omission 16, 17 Sustainable Corruption extortion and bribery. Supply Chain GRI 103: 103-1 Explanation of the material topic and its Boundary 19 Sustainable Sustainable Management Environment Environment 103-2 The management approach and its components 19 Approach 2016 Low Carbon & Energy 103-3 Evaluation of the management approach 19 Greenhouse Gas 419-1 Non-compliance with laws and regulations in the 19 Sustainable Design GRI 419: social and economic area Environmental Socioeconomic Protection Compliance 2016 Joyful Work Joyful Work Employment Relationship Attracting & Corporate government 15 Nurturing Talent Occupational Risk management 18 Health & Safety Employee Care Green product 30-32 Social Care Social Care Social Welfare Community Involvement Appendix-Index Appendix-Index GRI Content Index United Nations Global Compact UN Sustainability Development Goals Statement 56
Editorial Principles Editorial Principles Sustainability Development Goals (SDGs) of the A Word from A Word from United Nations the CEO the CEO Identi cation & Identi cation & Communication Communication Social Responsibility UN Commitment Sustainability PEGATRON Sustainability Development Goals Page No. Stakeholder Development Communication Goals (SDGs) PEGA GEM Goal Material Issue Identi cation E Maintain the Equality Sustainability Development Goals of Society Realize Gender Equality in Workplace. 39, 43, 46 Company Pro le Company Pro le (Equality) About PEGATRON Financial Performance Globalization Arrangement M Bene t the Award List Environment towards Use Current Energy with a Greener Way 27 Sustainable Sustainable Mutualism Management Management (Mutualism) Corporate Governance Code of Conduct Information Security Boost the Growth of Risk Management G Economy Regulatory Compliance Responsible Responsible (Growth) Partnership Partnership Elevate the Economic Performance 37, 38, 40, 46 Customer Service and Workplace. Maintain the Equality Sustainable Supply Chain E of Society Sustainable Sustainable (Equality) Environment Environment Low Carbon & Energy Greenhouse Gas M Bene t the Environment Sustainable Design towards Mutualism Environmental (Mutualism) Protection Engage in Responsible Consumption 22, 24, 30, Joyful Work Joyful Work and Production. 33, 34 Employment Maintain the Equality Relationship E of Society Attracting & Nurturing Talent (Equality) Occupational Health & Safety Bene t the Environment Evaluate and Mitigate the Impact on 27, 29 Employee Care M towards Mutualism Climate Change. Social Care Social Care ( utualism) Social Welfare M Community Involvement Remark: Appendix-Index Appendix-Index Please refer to the “Sustainability Development Goals” chapter for the actions and performance GRI Content Index corresponding to each goal. United Nations Global Compact UN Sustainability Development Goals Statement 57
Editorial Principles Editorial Principles Statement A Word from A Word from the CEO the CEO Identi cation & Identi cation & Communication Communication Social Responsibility Commitment Stakeholder Communication Material Issue Identi cation Sustainability Development Goals Company Pro le Company Pro le About PEGATRON Financial Performance Globalization Arrangement Award List Sustainable Sustainable Management Management Corporate Governance Code of Conduct Information Security Risk Management Regulatory Compliance Responsible Responsible Partnership Partnership Customer Service Sustainable Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Greenhouse Gas Sustainable Design Environmental Protection Joyful Work Joyful Work Employment Relationship Attracting & Nurturing Talent Occupational Health & Safety Employee Care Social Care Social Care Social Welfare Community Involvement Appendix-Index Appendix-Index GRI Content Index United Nations Global Compact UN Sustainability Development Goals Statement 58
Editorial Principles Editorial Principles A Word from A Word from the CEO the CEO Identi cation & Identi cation & Communication Communication Social Responsibility Commitment Stakeholder Communication Material Issue Identi cation Sustainability Development Goals Company Pro le Company Pro le About PEGATRON Financial Performance Globalization Arrangement Award List Sustainable Sustainable Management Management Corporate Governance Code of Conduct Information Security Risk Management Regulatory Compliance Responsible Responsible Partnership Partnership Customer Service Sustainable Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Greenhouse Gas Sustainable Design Environmental Protection Joyful Work Joyful Work Employment Relationship Attracting & Nurturing Talent Occupational Health & Safety Employee Care Social Care Social Care Social Welfare Community Involvement Appendix-Index Appendix-Index GRI Content Index United Nations Global Compact UN Sustainability Development Goals Statement Navigate Thanks the
Future This report is prepared in accordance with the GRI Standards issued by Global Sustainability Standards Board, GSSB: Core option. In order to increase the transparency and reliability of the report, the content is veri ed by an independent third party, DNV GL, based on the DNV GL VeriSustain™, AA1000 AS(2008) and complied with core option level of GRI Standards. The assurance statement is attached as an appendix of this report. For nancial data, it is referred to the nancial statement certi ed by qualied accountants.
If you have any query or comment about this CSR report, please feel free to contact us: PEGATRON Corporation Corporate Quality Policy Center | Sharon Hsieh | Burdey Cheng E-mail: [email protected] Address: No. 76, Ligong St., Beitou District, Taipei City 11261, Taiwan Website: http://www.pegatroncorp.com/