2017 CORPORATE SOCIAL RESPONSIBILITY REPORT OF PEGATRON GROUP version1.0 Navigate 01 Editorial Principles 03 Identi cation & 19 Responsible 48 Social Care Communication Partnership 49. Social Welfare the 04. Social Responsibility 20. Customer Service 49. Community Involvement Commitment 21. Sustainable Supply Chain Future 05. Stakeholder Communication 07. Material Issue Identi cation 08. Sustainability Development Goals (SDGs)
02 A Word from 09 Company Pro le 25 Sustainable 51 Appendix- Index the CEO 10. About PEGATRON Environment 52. GRI Standards Index 10. Financial Performance 26. Low Carbon & Energy 54. United Nations Global 11. Globalization Arrangement 27. Greenhouse Gas Compact Index 12. Award List 28. Sustainable Design 54. Sustainability Development Goals (SDGs) of 32. Environmental Protection the United Nations 56. Statement
13 Sustainable 35 Joyful Work Management 36. Employment Relationship 14. Corporate Governance 38. Attracting & Nurturing Talent 15. Code of Conduct 40. Occupational Health & Safety 16. Information Security 45. Employee Care 17. Risk Management 18. 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 Sustainable Design Sustainable Design PEGATRON has issued the corporate social responsibility (CSR) report every year since Environmental Environmental 2009. The report includes our economic, social, and environmental performances of This report is prepared in accordance with the GRI Standards issued by Global Protection Protection previous year. In 2018, we issue our eighth 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 third party, DNV GL, based on the DNV GL VeriSustain, AA1000 AS (2008) and Relationship Relationship sustainability issue in 2017. Our CSR report is issued in Traditional Chinese, Simpli ed complied with core option level of GRI Standards. The assurance statement is Attracting & Attracting & Chinese and English, and published on PEGATRON’s website for stakeholders’ reference. Nurturing Talent Nurturing Talent The previous version of it was released in June, 2017. attached as appendix of this report. For nancial data, it is referred to the Occupational Occupational nancial statement certi ed by quali ed accountants. Health & Safety Health & Safety The CSR report is written by CSR implementation committee members and its period is Employee Care Employee Care from January 1, 2017 to December 31, 2017. PEGATRON referred in this report is composed Social Care Social Care by PEGATRON Corporation and its Core Businesses, includes Headquarters (HQ) and Social Welfare Social Welfare Taoyuan manufacturing center in Taiwan, Central China operation center (Maintek, Cotek and Casetek in Suzhou), East China operation center (Protek in Shanghai and Pegalobe in Community Community If you have any query or comment about this CSR report, please feel free to contact us: Involvement Involvement Kunshan), West China operation center (Digitek and Kaichuan in Chongqing) in China, Appendix-Index Appendix-Index Mexico manufacturing center in America and Czech manufacturing center in Europe. PEGATRON Corporation GRI content index GRI content index United Nations Global United Nations Global In order to meet IFRS (International Financial Reporting Standards) Consolidated Financial Corporate Quality Policy Center | Olivia Chen Compact Index Compact Index Statements requirement in Taiwan, subsidiaries are included in the nancial E-mail: [email protected] Sustainability Sustainability performances, but the service centers and other listed subsidiaries are excluded from the Address: No. 76, Ligong St., Beitou, Taipei 112, Taiwan Development Goals Development Goals scope of this report. The entities included in this report account for more than 80% of of the United Nations of the United Nations O cial website: http://www.pegatroncorp.com/ Statement Statement consolidated revenue. 02
Editorial Principles Editorial Principles A Word from A Word from the CEO the CEO Identi cation & Identi cation & Communication Communication Develop Diversely and Social Responsibility Social Responsibility Commitment Commitment Stakeholder Stakeholder Communication Communication Share the Value Jointly. Material Issue Material Issue Identi cation Identi cation Sustainability Sustainability Development Goals Development Goals We are looking forward to playing an essential role in Company Pro le Company Pro le the value chain, working with our partners to About PEGATRON About PEGATRON Financial Performance Financial Performance demonstrate sustainable value in the industry and Globalization Globalization Arrangement Arrangement taking e ective actions on reinforcing environmental Award List Award List Sustainable Sustainable protection as well as making social improvement. 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 Sustainable Design Sustainable Design After undergoing global economic and political unrest in 2016, the policy uncertainty In the aspect of corporate governance, Pegatron was ranked the top 20% of listed Environmental Environmental from major economies has reduced in 2017. It helped ease the concern of de ation companies in "The Third Corporate Governance Evaluation" held by Taiwan Stock Protection Protection and stimulate global investment, production, and trading activities. As a result, global Exchange. We will continue pursuing better performance on sustainability develop- Joyful Work Joyful Work economy is gradually recovering and is expected to continue its momentum into ment, reinforcing our capability by improving all applicable indicators on social Employment Employment Relationship Relationship 2018. Pegatron successfully penetrated into new customers and broadened business responsibility and strengthening the communication with the stakeholders. We are Attracting & Attracting & scope with existing customers. Bene tting from new product launch, Pegatron looking forward to playing an essential role in the value chain, working with our part- Nurturing Talent Nurturing Talent achieved revenue growth on a year over year basis. ners to demonstrate sustainable value in the industry and taking e ective actions on Occupational Occupational reinforcing environmental protection as well as making social improvements. Health & Safety Health & Safety Employee Care Employee Care Pegatron, as a responsible corporate citizen, continues to engage in corporate social Social Care Social Care responsibility and integrate the core elements of sustainability into our corporate Looking forward to 2018, PEGATRON continues to focus on the factors that might Social Welfare Social Welfare strategy. Pegatron continuously advocates corporate social responsibility through its potentially impact economy, environment and society globally. As a member of Community Community daily operations and an interactive communication e-platform established for infor- Responsible Business Alliance (“RBA”), Pegatron is committed to building a sustainable Involvement Involvement mation exchange with suppliers. Furthermore, the annual supplier conference also supply chain. Not only does Pegatron advocate CSR requirements at its annual suppli- Appendix-Index Appendix-Index provides an opportunity to share our philosophy on sustainability. Pegatron actively er conference, but also encourage suppliers to participate the initiatives convened by GRI content index GRI content index responds to stakeholders’ concerns on corporate sustainability, and continues to RBA. Through this process, we aim to further emphasize the concept of sustainability United Nations Global United Nations Global Compact Index Compact Index promote the awareness of human rights, as well as maintains a friendly, safe, and in the supply chain. Sustainability Sustainability healthy working environment. In order to implement environmental protection and Development Goals Development Goals leverage the resources e ciently, Pegatron regularly conducts self-evaluation and of the United Nations of the United Nations assessment to ensure e ective use of energy and resources. Statement Statement Navigate Identi cation & Communication the E ective communication with stakeholders is the Future way to achieve continual improvement and sustainable development. 04 corrective actions, as well as reviews CSR performances by PureCSR management review Editorial Principles Editorial Principles Social Responsibility Commitment meetings to ensure the e ciency of PureCSR management system. We devoted to the A Word from A Word from implementation of environmental management system, occupational safety and health the CEO the CEO Be in line with social responsibility as an excellent corporate citizen. management system, quality & green management system and greenhouse gas Identi cation & Identi cation & inventory. The certi cation and veri cation statements veri ed by third-party are disclosed PEGATRON’s corporate social responsibility is planned, operated and implemented by Communication Communication on our company’s website. Social Responsibility PureCSR (PEGATRON‘s Corporate Social Responsibility) Steering Committee which is led Commitment by CEO authorized by its board of directors. The committee members are consisted of Stakeholder relevant departments, including representatives from Corporate Quality Policy Center Communication (CQPC), Human Resource & Administration Center (HR & ADM), Procurement Center, Material Issue Customer Service Business Unit (CSBU), Finance & Accounting Center, Legal & IPR PureCSR policy Identi cation █ (Intellectual Property Right) Center, Audit O ce, business units and CSR representatives of Sustainability 1. Abide by all environmental protection, 4. Satisfy customer requirements and become Development Goals Operation Centers and Manufacturing Centers. All members identify their elds’ labor, safety and health laws. an entirely green enterprise. Company Pro le Company Pro le stakeholders according to their jobs and respond to stakeholders’ concerns in daily About PEGATRON About PEGATRON operations. Cross unit issues are discussed in PureCSR Steering Committee meeting to 2. Conserve natural resources, and actively 5. Enable company-wide promotion of corporate Financial Performance Financial Performance reach consensus among related units. CSR implementation status is periodically reported prevent pollution. responsibility in a social environment. Globalization Globalization to the CEO and submitted to the Company’s board for a decision every year. 3. Reduce environmental impact and 6. Summon all employees to participate in Arrangement Arrangement safety risks. the program and continuously improve it. Award List Award List Sustainable Sustainable Management Management CSR Organization Chart Corporate Governance Corporate Governance ： PEGATRON also commits to implement the following directives with express our Code of Conduct Code of Conduct intention to ful ll the following: Information Security Information Security CEO Risk Management Risk Management 01. Abide by environmental and labor laws, regulations and other international requirements to meet global environmental protection, labor rights and zero-hazard activity. Regulatory Compliance Regulatory Compliance Responsible Responsible HR & Administration Partnership Partnership 02. Educate entire employees, making them aware to protect environment, respect the Customer Service Customer Service CSR Management Finance dignity of life, cherish natural resources, ensure safety and promote physical and Sustainable Sustainable mental health of everyone. Supply Chain Supply Chain Task Force Team Representative Legal & IPC 03. Achieve the goal of e ective resource consumption through reusing and recycling of Sustainable Sustainable Environment Environment resources as well as supervise waste management to prevent from being reused Audit or resold. Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas 04. Enhance the monitoring and reducing of environmental pollutant and risk Sustainable Design Sustainable Design Business units Procurement Manufacturing Service management. Meanwhile, improve the e ciency of resource utilization to reduce the Environmental Environmental impacts on the environment as well as disclose the environmental performance regularly. Protection Protection 05. Promote the independence and reliability of the self-management so as to optimize Joyful Work Joyful Work the quality of occupational hazard control, and reduce occupational risks to build a Employment Employment satis ed working environment. Relationship Relationship PEGATRON publicly discloses the practice and performance of corporate social Attracting & Attracting & responsibility via the publishing of annual CSR report, and takes it as a communication 06. Establish a management system for corporate social responsibility to improve the Nurturing Talent Nurturing Talent platform for stakeholders. We can get more understanding of their needs and e ciency for environmental protection, ethics, labor rights, safety and health. Occupational Occupational requirements so as to have a two-way communication. Meanwhile, the CSR report is Health & Safety Health & Safety regarded as a tool to review the strategy of sustainable management and ensure the Employee Care Employee Care 07. Implement greenhouse gas inventory and reduction program to practice energy completeness of management system. conservation and carbon reduction as well as improve energy e ciency to meet Social Care Social Care international trends in environmental protection and customers’ requirements. Social Welfare Social Welfare PEGATRON established the “Corporate Social Responsibility Best-Practice Principles” in Community Community 2015 and disclosed it on the company’s o cial website to show our philosophy and 08. Implement energy and natural resource management to optimize the utilization rate Involvement Involvement determination on the practice of corporate social responsibility. on them in di erent stages of design, purchase and use to achieve the goal of Appendix-Index Appendix-Index continuous improvement, as well as promote the overall environmental performance. Corporate Social Responsibility Best-Practice Principles: GRI content index GRI content index http://www.pegatroncorp.com/investorRelation/majorInternalPolicies/lang/en_US 09. Openly pledge the company’s commitment in protecting the environment and labor United Nations Global United Nations Global rights and reducing occupational hazards as well as regularly disclose corporate social Compact Index Compact Index To have an e ective management on CSR related issues, PEGATRON establishes PureCSR responsibility information to enhance the trust and communication with stakeholders. Sustainability Sustainability policy and implements the corporate social responsibility and safety & health Development Goals Development Goals 10. Abide by ethics code of conduct, including business integrity, no improper advantage, of the United Nations of the United Nations management system (PureCSR management system). The Company not only sets up CSR not to bribe or take bribes, and to protect the personnel who raise any concerns or Statement Statement objectives and targets every year, but also performs internal audits, external audits and inform against illegal acts from being fear of retaliation. 05 11. Emphasize on equal opportunities as well as prohibit any kinds of harassment and PEGATRON’s stakeholder discrimination or inhumane treatment, and establish two-way communication ： Editorial Principles Editorial Principles channels to maintain good relationship between employees and employers. A Word from A Word from the CEO the CEO 12. Continually address the con ict minerals issues and exercise due diligence on the Identi cation & Identi cation & sources of metal raw materials to conduct responsible procurement for metals. Customer Communication Communication Social Responsibility NGO Employee Commitment 13. Do our best to summon our suppliers to comply with related corporate social Stakeholder responsibility regulations and RBA (formerly the EICC) Code of Conduct to sustainably Communication grow together with our suppliers. Media Investor Material Issue Identi cation Sustainability As a member of RBA (Responsible Development Goals Business Alliance, formerly the Government Supplier Company Pro le Company Pro le Electronics Industry Citizenship About PEGATRON About PEGATRON Coalition), we continuously participate Community Competitors Financial Performance Financial Performance in the relevant activities and have discussions with peers on the issues and trends of Globalization Globalization business sustainability. Also, we actively respond several corporate responsibility Arrangement Arrangement projects and initiatives, including responsible minerals and environmental Award List Award List sustainability. In addition to be the member of RBA, PEGATRON is also one of the Sustainable Sustainable members of the Taipei Computer Association (TCA). Our chairman, Tzu-Hsien, Tung, All issues stakeholders concerned and communication channels are listed in the Management Management is its chairman of the Board. As a world-class industry association, TCA continues to following table Corporate Governance Corporate Governance be an industry promoter on ICT (Information and Communication Technology), and ： Code of Conduct Code of Conduct works hard with more than 4,000 members to create another business peak with Information Security Information Security huge business opportunities in Taiwan. Stakeholder Stakeholder Issues of Concern Corresponding Chapter Risk Management Risk Management Regulatory Compliance Regulatory Compliance Wage Level and Local Hiring Supplier Conferences Responsible Responsible Management System to Avoid Customer Audits Partnership Partnership Forced Labor Customer Service Customer Service Sustainable Sustainable Environmental Regulatory Regular Meetings Supply Chain Supply Chain Stakeholder Communication Compliance Sustainable Sustainable Environment Environment Regulatory Compliance on Labor RBA On-line Low Carbon & Energy Low Carbon & Energy 9 major stakeholders is identi ed based on the degree of Conditions (formerly EICC-ON) Greenhouse Gas Greenhouse Gas interactive in uences. Employment Protection Sustainable Design Sustainable Design The major stakeholders include employees, customers, investors, government agencies, Regulatory Compliance on Labor Environmental Environmental Customer Protection Protection suppliers, competitors, media, NGOs (Non-Government Organizations) and communities. Conditions Joyful Work Joyful Work We communicate with stakeholders through various communication channels and Implementation of Occupational Employment Employment understand stakeholders' needs and requirements to keep good relationships with them. Health & Safety Relationship Relationship PEGATRON sets a speci c webpage with an external communication mailbox Identi cation, Handling and Attracting & Attracting & ([email protected]) maintained by the dedicated personnel for Nurturing Talent Nurturing Talent Training on Anti-Corruption stakeholders on our company’s website, as one of communication channel with Occupational Occupational stakeholders. We understand reasonable expectations and needs of stakeholders by Supplier Management to Avoid Health & Safety Health & Safety Child Labor Employee Care Employee Care proper communications, and respond these major concerned CSR issues. Social Care Social Care Environmental Protection Social Welfare Social Welfare Regulatory Compliance on CSR Community Community Regulatory Compliance on Labor Involvement Involvement Regular Meetings Conditions Appendix-Index Appendix-Index GRI content index GRI content index Wage Levels and Local Hiring Internal Website United Nations Global United Nations Global Wages, Bene ts and Internal Publications Compact Index Compact Index Employee Sustainability Sustainability Performance Review Development Goals Development Goals of the United Nations of the United Nations Operational and Financial Announcements Statement Statement Performance 06 Identi cation and Handling on Grievance Box Customer Complaints on Privacy Editorial Principles Editorial Principles Anti-Corruption Violation A Word from A Word from CSR Communications on Labor Co ee Talks Supplier Management on the CEO the CEO Conditions Environmental Identi cation & Identi cation & Communication Communication Employment and Retention Hotlines Supplier Management on Labor Social Responsibility Management System to Avoid Labor-Management Conditions Commitment Meetings Stakeholder Forced Labor Business Ethics and Business Communication Environmental Performance and Monthly Business Reports Integrity Material Issue Investment Identi cation Wage Level and Local Hiring Public Hearings on Policy Sustainability Operational and Financial Shareholders' Meetings Development Goals Performance Management System to Avoid Questionnaires & Interviews Company Pro le Company Pro le Employment and Retention Investor Conferences Forced Labor About PEGATRON About PEGATRON Investors Regulatory Compliance on Projects and Initiatives Financial Performance Financial Performance Negative Impact on Local Annual Reports Government Environment Globalization Globalization Communities Arrangement Arrangement Non-compliance with Product Market Observation Regulatory Compliance on Labor Conferences Award List Award List Life Cycles Post System (MOPS) Conditions Sustainable Sustainable Environmental Protection Management Management Regulatory Compliance on Labor Corporate Governance Corporate Governance Conditions Regulatory Compliance on CSR Code of Conduct Code of Conduct CSR Communications Wage Level and Local Hiring Press Conferences Information Security Information Security Operational and Financial Supplier Conferences Management System to Avoid Press Releases Risk Management Risk Management Forced Labor Regulatory Compliance Regulatory Compliance Performance Regulatory Compliance on Labor External Communication Responsible Responsible Suppliers Supplier Management on Labor Supplier Audits Media Mailbox Partnership Partnership Conditions Conditions Customer Service Customer Service Business Ethics and Business Sustainable Sustainable Supplier Management on Supplier Relationship Integrity Supply Chain Supply Chain Environment Management Sustainable Sustainable Environment Environment Raw Materials Purchasing External Communication Operational and Financial Low Carbon & Energy Low Carbon & Energy Mailbox Performance Greenhouse Gas Greenhouse Gas Environmental Impact of Energy Inventory and Participate Organizations Sustainable Design Sustainable Design Products and Materials Conservation Environmental Environmental Protection Protection Local Purchasing Percentage Regulatory Compliance on Conferences Joyful Work Joyful Work Environmental Protection External Communication Environment Employment Employment Mailbox Relationship Relationship Operational and Financial External Communication Attracting & Attracting & Regulatory Compliance on NGO Performance Mailbox Nurturing Talent Nurturing Talent Environment CSR Implementation Occupational Occupational Negative Impact on Local Environmental Performance and Health & Safety Health & Safety Community Employee Care Employee Care Communities Investment Social Care Social Care Violations In uencing Rights of Regulatory Compliance on Labor Social Welfare Social Welfare Local Residents Conditions Community Community Involvement Involvement Environmental Impact of Trans- Appendix-Index Appendix-Index porting GRI content index GRI content index Operational and Financial Conferences United Nations Global United Nations Global Performance Compact Index Compact Index Environmental Performance and Sustainability Sustainability Competitors Development Goals Development Goals Investment of the United Nations of the United Nations Statement Statement 07 The identi cation result of 2017 Sustainability Issues: Editorial Principles Editorial Principles Material Issue Identi cation A Word from A Word from the CEO the CEO E7 Identi cation & Identi cation & 14 major material issues are identi ed throughout the E5 E9E6 Communication Communication comprehensive consideration of the impacts on business G1 Social Responsibility operations as well as the concerns of stakeholders. S19 G7 Commitment S4E2 Stakeholder S18 G5 S2S1S3 Communication In order to enhance the communication e ciency with stakeholders, we not only collect suggestions from the employees who may directly contact stakeholders in their daily Material Issue S20 G2 G8 Identi cation operations, but also investigate internally and analyze the concerns of di erent S7 Sustainability stakeholders through the indirect and direct channels. E1 E8 Development Goals G6 G4 G3 S16 S8 Company Pro le Company Pro le We identify the issues stakeholders concerned according to the four principles of the
About PEGATRON About PEGATRON Global Reporting Initiative, which are materiality, stakeholder inclusiveness, sustainability Signi cance of economic, S14E10 S5 S6
Financial Performance Financial Performance context, and completeness through a systematic approach, and providing the environmental,& social impacts S9 Globalization Globalization information through CSR accordingly to ensure stakeholders receive the information they S10 S17 S13 Arrangement Arrangement need. There are 39 sustainable issues included in the materiality assessment according to S15 S12 E3 Award List Award List the aspects of GRI Standards, including economic, environmental and social topics, as well S11 Sustainable Sustainable as the concerns from internal and external parties. E4 Management Management The assessment process is listed as belows: Corporate Governance Corporate Governance In uence on stakeholder assessments & decisions Code of Conduct Code of Conduct Information Security Information Security Risk Management Risk Management Regulatory Compliance Regulatory Compliance Economic E4 Biodiversity S7 Freedom of association and Responsible Responsible 1 2 3 4 collective bargaining Partnership Partnership G1 Economic performance E5 Emissions G2 Market presence E6 E uents and waste S8 Child labor Customer Service Customer Service Collect Survey the Analyze the Determine E7 Environmental compliance S9 Forced or compulsory labor Sustainable Sustainable the GRI issues issues issues the material issues G3 Indirect economic Supply Chain Supply Chain impacts E8 Supplier environmental S10 Security practices Sustainable Sustainable G4 Procurement practices assessment S11 Rights of indigenous peoples Environment Environment ● Identify the ● Collect ● Sequence ● Set threshold G5 Anti-corruption E9 Green product S12 Human rights assessment Low Carbon & Energy Low Carbon & Energy stakeholders. concerned based on ( rst quadrant) G6 Anti-competitive behavior E10 Climate change S13 Local communities Greenhouse Gas Greenhouse Gas issues by degrees of to identify Inventory G7 Governance S14 Supplier social assessment Sustainable Design Sustainable Design ● questionnaires, concerned 2017 material Social sustainable G8 Ethics and integrity S15 Public policy Environmental Environmental daily commu issues and issues and S1 Employment issues and nication records impact levels con rm their G9 Risk Management Protection Protection summarize S2 Labor / management relations S16 Customer health and safety Joyful Work Joyful Work (include customer of issues on boundaries. S17 Marketing and labelling them based on requirements), economy, Environmental S3 Occupational health and safety Employment Employment GRI standards. E1 Materials S4 Training and education S18 Customer privacy Relationship Relationship media news society and and so on. environment. S19 Socioeconomic compliance Attracting & Attracting & E2 Energy S5 Diversity and equal opportunity Nurturing Talent Nurturing Talent E3 Water S6 Non discrimination S20 Con ict mineral Occupational Occupational Health & Safety Health & Safety * E1 Materials and E9 Green product were not included in material issues in this year but we continue Employee Care Employee Care to report them. Based on the result of materiality analysis, we identi ed the material issues in 2017 CSR Social Care Social Care Report. After the material issues identi ed, we de ned the scope covered by related Social Welfare Social Welfare aspects to ensure the information transparency and the suitable boundaries. In addition Community Community Involvement Involvement to the response and disclosure in the corporate social responsibility report, PEGATRON Appendix-Index Appendix-Index also focuses on using the material issues to communicate with stakeholders and takes GRI content index GRI content index them as material issues of continuous improvement. We take the concept of PDCA United Nations Global United Nations Global (Plan–Do–Check–Act) and periodically assess the e ectiveness of our management. Compact Index Compact Index Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 08 The boundaries of material issues: Items disclosed in this report Items not included in this report ◎ △ Editorial Principles Editorial Principles A Word from A Word from Inside Organization Outside Organization Media/ the CEO the CEO Investor/ NGO/ Identi cation & Identi cation & Category Material Issue Chapter HQ Site Subsidiary Customer Supplier Community Government Competitor Communication Communication Economic performance Financial Performance Social Responsibility ◎ ◎ ◎ Commitment Market presence Labor Relationship ◎ ◎ △ ◎ ◎ Stakeholder Economic Governance Corporate Governance Communication ◎ ◎ △ ◎ ◎ Material Issue Ethics and integrity Code of Conduct ◎ ◎ △ ◎ ◎ ◎ Identi cation Risk management Risk Management Sustainability ◎ ◎ △ ◎ ◎ Development Goals Energy Low Carbon & Energy ◎ ◎ △ ◎ ◎ Company Pro le Company Pro le Emissions Greenhouse Gas ◎ ◎ △ ◎ ◎ About PEGATRON About PEGATRON Environment Euents and waste Environmental Protection Financial Performance Financial Performance ◎ ◎ △ ◎ ◎ ◎ Globalization Globalization Environmental compliance Environmental Protection Arrangement Arrangement Employment Labor Relationship ◎ ◎ △ ◎ Award List Award List ◎ ◎ △ ◎ ◎ Labor management relations Employee Care Sustainable Sustainable ◎ ◎ △ ◎ Management Management Social Occupational health and safety Occupational Health and Safety ◎ ◎ △ ◎ ◎ Corporate Governance Corporate Governance Training and education Attracting and NurturingTalent Code of Conduct Code of Conduct ◎ ◎ △ Socioeconomic compliance Regulatory Compliance Information Security Information Security ◎ ◎ △ ◎ Risk Management Risk Management 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 elevate the utility e ciency of energy and resources, design in a Sustainable Sustainable Growth, Equality and Mutualism Environment Environment manner of eco-friend and produce in a greener way. We continue to reduce the negative Low Carbon & Energy Low Carbon & Energy The United Nations published Sustainability Development Goals (SDGs) in 2014 which impacts led by our operations and activities towards the environment and optimize the Greenhouse Gas Greenhouse Gas includes 17 Goals and 169 Targets. As a corporate citizen and one of the key roles on utility e ciency of energy and resources through continuous improvement and the Sustainable Design Sustainable Design global supply chain of technology industry, PEGATRON proactively responds the SDGs in innovative technology on manufacturing. Environmental Environmental 3 directions on sustainability, which are boosting the growth of economy (Growth), Protection Protection maintaining the equality of society (Equality) and bene ting the environment towards Joyful Work Joyful Work Gender Realize Gender Equality in Workplace mutualism (Mutualism). Equality Eliminate discrimination of gender and Employment Employment build a friendly workplace. Relationship Relationship Boost the Growth of Economy (Growth) Attracting & Attracting & Nurturing Talent Nurturing Talent PEGATRON continues to accumulate inner capacity on R&D and technology to develop Sustainable Use Current Energy with a Greener Way Occupational Occupational new products to respond the market trend, as well as extend our business towards Energy Improve the e ciency of energy use and Health & Safety Health & Safety di erent elds. We not only focus on increasing revenue, but also create local working reduce the cost of energy. Employee Care Employee Care opportunities to boom the economy development and cultivate local talents. Economic Enhance the Economic Social Care Social Care (Equality) Maintain the Equality of Society (Equality) Growth& Performance and Workplace Social Welfare Social Welfare Decent work Create employment opportunities Community Community PEGATRON supports gender equality in workplace by using practical actions. Every and protect labor rights. Involvement Involvement gender can have equal opportunity on employment, promotion and development. To Appendix-Index Appendix-Index respect international labor rights, involuntary or forced labors are forbidden. We Responsible Engage in Responsible Production Consumption and Production GRI content index GRI content index cooperate with our partners via constant communication to learn from each other, so as Responsible sourcing, sustainable United Nations Global United Nations Global to promote labor rights jointly in the industry value chain. design and prevention of pollutions. Compact Index Compact Index Sustainability Sustainability Bene t the Environment towards Mutualism (Mutualism) Climate Evaluate and Mitigate the Impact on Development Goals Development Goals PEGATRON engages in developing of economy, meanwhile takes environmental Action Climate Change of the United Nations of the United Nations Reduce the risks 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. Navigate Company Pro le the Competence in both design Future and manufacturing to create a new style. 10 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 “Joyful Working, Happy Living” is our business philosophy, opportunities and challenges into pleasures. With our mission of “navigating the future”, Identi cation & Identi cation & Pegatron seeks to pursue the goal of becoming an industry-leading company that Communication Communication as well as our direction to be towards economic growth and satis es people throughout the world with its unique design innovations and exceptional Social Responsibility sustainable development. services. Commitment Stakeholder Founded in 2008, PEGATRON is a worldwide leader providing DMS (Design, Communication Manufacturing and Service) services. PEGATRON o ers assembly service to customers on Material Issue a wild range of electronics products in computing, communications and consumer Identi cation electronics segments, including Notebook PCs, DeskTop PCs, Motherboards (MB), VGA Management Philosophy Sustainability Cards, Cable Modem, Set-Top Boxes, Smartphones, Switches, Routers, Game Consoles, █ Development Goals Pegatron expects all of our employees to work sincerely and joyfully so that to inspire the Company Pro le Company Pro le Tablet PCs, Automotive Electronics, etc. In addition to providing assembly service for brand customers, the Company also engages in development, design, and manufacturing potential of each one of them. Through the tight relationship among teams with di erent About PEGATRON functions, Pegatron employees are able to create truly market-driven products based on Financial Performance of peripherals and components of the above-mentioned products. As the devices mentioned above require a combination of hardware and software capabilities to maximizing bene t of customers. Ultimately, customer can experience better lives with Globalization Pegatron’s design and innovation. Arrangement integrate with technologies in computing, communication, video, audio, etc. Pegatron, Award List with the solid foundation in research and development, has the competitive edge to Sustainable Sustainable provide integrated services to brand customers. With IoT being ourishing in the past few Management Management years, Pegatron will enhance its core competency and apply core technologies into Corporate Governance Corporate Governance di erent areas such as smart home products and car electronics. In order to prepare itself Code of Conduct Code of Conduct for the next wave of growth, Pegatron further expanded manufacturing capacity in 2017. Financial Performance Information Security Information Security After the expansion, the Company will push for growth of existing production lines, and Risk Management Risk Management improve utilization rate while pursuing new projects and expanding customer base. Continuously breakthrough ourselves Regulatory Compliance Regulatory Compliance Pegatron has several operation and manufacturing locations including Taiwan, China, Responsible Responsible United States, Mexico and Czech Republic. With the global operation network, the and go further with steady steps. Partnership Partnership Company hopes to provide timely support to our customers and o er all value added The consolidated revenue of PEGATRON reached NT$1,193.8 billion in 2017, increased by Customer Service Customer Service services to be a one stop shop for total solutions. Sustainable Sustainable 3% from that of 2016, resulted mainly from the growth in mobile device demand. In 2017, Supply Chain Supply Chain PEGATRON received tax bene t of TWD NT$356 million as an encouragement for further Sustainable Sustainable investment according to regulations. For more detailed operating performance and Environment Environment nancial information, please refer to the Company’s 2017 Annual Report. Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas PEGATRON File http://www.pegatroncorp.com/investorRelation/annualReports/lang/en_US Sustainable Design Sustainable Design Environmental Environmental Company name: PEGATRON Corporation Protection Protection Joyful Work Joyful Work Establishment: Founded at 1st, Jan, 2008. Employment Employment The brief consolidated income statement of PEGATRON and its Relationship Relationship Headquarters: No. 76, Ligong St., Beitou District, Taipei City, Taiwan subsidiaries for the year ended 2017 and 2016 are as following: Attracting & Attracting & Nurturing Talent Nurturing Talent Stock code: 4938 (listed on Taiwan Stock Exchange from 2010) Occupational Occupational Chairman of the Board: Tzu-Hsien Tung 2017 2016 Health & Safety Health & Safety Unit: TWD in million Employee Care Employee Care Employee size (dispatched labor included): About 156,477 employees Operating revenue 1,193,809 1,157,710 Social Care Social Care worldwide in 2017 Social Welfare Social Welfare Cost of Sales 1,147,139 1,094,643 Community Community Capital: NT$26.1 billion Involvement Involvement Gross pro t 46,670 63,067 Revenue: Reached NTD 1,193.8 billion in 2017 Appendix-Index Appendix-Index Operating Expenses 27,671 30,653 GRI content index GRI content index Main businesses: Computing, communication, and consumer electronics United Nations Global United Nations Global products Operating Income 18,999 32,414 Compact Index Compact Index Non-operating income & expenses 1,414 -3,334 Sustainability Sustainability Major customers: Renowned global information technology and Development Goals Development Goals of the United Nations of the United Nations communication brands Pro t before tax 20,413 29,080 Statement Statement 11 Tax Expense 4,398 6,942 Major investments of Pegatron Group can be mainly divided into the following three categories: Editorial Principles Editorial Principles Pro t 16,015 22,137 A Word from A Word from (1) DMS core business: the CEO the CEO Income after Income Tax -5,878 -8,421 Central China operation center (Maintek and Cotek in Suzhou), East China operation Identi cation & Identi cation & Communication Communication Comprehensive Income 10,137 13,716 center (Protek in Shanghai and Pegalobe in Kunshan), West China operation center Social Responsibility (Digitek in Chongqing), Pegatron Mexico manufacturing center and Pegatron Czech Commitment Pro t, attributable to owners of parent 14,683 19,340 manufacturing center. Stakeholder Comprehensive income, 9,241 12,008 (2) Vertical Integration: Communication attributable to owners of parent Material Issue Casetek (Suzhou); Kaedar Electronics (Kunshan), Casetek Holdings Ltd. (Cayman) and Identi cation FuYang Technology. Sustainability Development Goals (3)Strategic Investment: Company Pro le Company Pro le Kinsus/ Piotek, ASRock, Azurewave and Lumens. About PEGATRON Globalization Arrangement Financial Performance Globalization Arrangement Assess the arrangement comprehensively to Important investment allocation Award List Sustainable Sustainable perfect the service globally. Management Management In the area of high technology industry around the world, Taiwan is placed in a Corporate Governance Corporate Governance signi cant position. Many famous brands rely on innovation and exible researching Protek AzureWave Camera Module, Wireless Module, SiP Code of Conduct Code of Conduct skills of Taiwan’s technology industry. Responding to lower and lower gross margin Casetek Pegaglobe Digitek Light Metal, Anodizing Information Security Information Security of OEM, original equipment manufacturing enterprises, the Group actively thinks Risk Management Risk Management Kinsus / Piotek about how to overcome this challenge, and moves toward a new model called DMS, IC Substrate, PCB Regulatory Compliance Regulatory Compliance CaseTek / Kaedar Design, Manufacturing and Service. Metal, Plastic, Tooling Responsible Responsible Maintek Ostrava, ASRock PC MB, IPC, Server Partnership Partnership Our manufacturing facilities and service centers have been strategically established all Czech FuYang Customer Service Customer Service FPC over the world to provide the most e cient service to our customers. We set up these Juarez, Lumens Sustainable Sustainable operation centers based on the strengths of the individual locations to provide the fast Mexico Optoelectronics Supply Chain Supply Chain and customized processes and solutions to our customers. Sustainable Sustainable Environment Environment Core Business Vertical Integration Strategic Investment Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas Manufacturing Site Service Center Design Center Sustainable Design Sustainable Design Environmental Environmental 1. Deployment of DMS Core Business Protection Protection Joyful Work Joyful Work Maintek Computer (Suzhou) Co., Ltd manufactures Notebook (NB), Desktop (DT), Ostrava, Czech Employment Employment Motherboard(MB), Consumer Electronics(CE), Networking and LCD TV, while Protek Relationship Relationship Suzhou, China Tokyo, Japan (Shanghai) Limited mainly manufactures Consumer Electronics and Handheld Device, Indiana, US Attracting & Attracting & Pegaglobe Electronics (Kunshan) manufactures Networking and Handheld Devices. Nurturing Talent Nurturing Talent HEADQUARTERS Besides, Digitek Computer (Chongqing) Co., Ltd mainly manufactures Notebook. As a Occupational Occupational Chongqing, China Kunshan, China result of the free trade zone in North America and tax regulations by European Union Health & Safety Health & Safety Juarez, Mexico and in order to enhance customer service, Pegatron Mexico, S.A. DE C.V and Pegatron Employee Care Employee Care Taipei, Taiwan Czech s.r.o. (“PCZ”) were established as the major manufacturing centers in America Social Care Social Care and Europe respectively. Social Welfare Social Welfare Shanghai, China
Community Community Taoyuan, Taiwan Involvement Involvement Sao Paulo, Brazil Appendix-Index Appendix-Index GRI content index GRI content index United Nations Global United Nations Global Compact Index Compact Index Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 12 2. Deployment of Vertical Integration Editorial Principles Editorial Principles Award List A Word from A Word from the CEO the CEO Company name Remark Identi cation & Identi cation & Ranked #884 among 2017 Forbes The Global 2000 Communication Communication ˙ In additional to mental stamping for Ranked #2 among 2017 Common Wealth Magazine 2000 Survey in Taiwan Social Responsibility desktop PC, Casetek has gradually ˙ Commitment developed technology in plastic Manufacturing Companies Casetek computer (Suzhou) co., ltd. Stakeholder injection and become the main Communication Top 20% of the best companies among The Second Corporate Governance manufacturing center of mechanical ˙ Material Issue components in the group. Evaluation held by Taiwan Stock Exchange Identi cation Ranked #26 among 2017 Top 100 Patent Granted Ranking in Taiwan Sustainability Kaedar electronics (Kunshan) co., ltd. ˙ Development Goals Mechanical Kai He Computer Accessory 2016 Taipei City Best Self-Management Unit of Labor and Safety (Headquarters) Company Pro le Company Pro le component (Suzhou) co., ltd. Established via joint venture ˙ About PEGATRON Core-tek (Shanghai) limited 2017 Certi ed Nursing Room by the Health Bureau of Taipei City ˙ Financial Performance Dongbu zsc Globalization Arrangement A light metal manufacturing company; Award List Casetek Holdings Ltd.(Cayman) we merge it through acquisitions. Sustainable Sustainable Management Management A new established company, which FuYang Technology Corporation Corporate Governance Corporate Governance focus on FPC module. Code of Conduct Code of Conduct Information Security Information Security Risk Management Risk Management Regulatory Compliance Regulatory Compliance 3. Deployment Strategic Investment Responsible Responsible Partnership Partnership Customer Service Customer Service Company name Remark Sustainable Sustainable Supply Chain Supply Chain Manufacturing and sales of a leading brand in low to mid end Sustainable Sustainable ASRock incorporation motherboard and industry computer. Environment Environment Low Carbon & Energy Low Carbon & Energy Kinsus interconnect Greenhouse Gas Greenhouse Gas technology corporation/ Manufacturing and sales of BGA substrate and PCB. Sustainable Design Sustainable Design Piotek holding limited Environmental Environmental Azurewave technologies inc. Major products including Wi-Fi module, camera module, TV Protection Protection card and LED products. Joyful Work Joyful Work Employment Employment Lumens digital optics Inc. Major products including special purpose projector and light Relationship Relationship engines for large screen monitor. 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 Global United Nations Global Compact Index Compact Index Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement Navigate Sustainable Management the Respect the stakeholders and we will have positive contribution Future toward our own development 14 • Bachelor of Political Science, National Taiwan University Editorial Principles Editorial Principles Corporate Governance • PH.D. in International A airs & A Word from A Word from Master degree in Law and the CEO the CEO Diplomacy of The Fletcher School, We honor ourselves as a corporate citizen, follow legal requirements Tufts University Identi cation & Identi cation & Communication Communication • Member of the Legislative Yuan of R.O.C. and self-monitor the compliance. • Associate Professor of Master's Social Responsibility Program of Political Science, Commitment Shou-Chung National Taiwan University • Executive Director of Chinese Blood Stakeholder Shareholders Meeting Director • Visiting Research Fellow of Hoover Donation Association Communication Ting Institution of Stanford University • Chairman of Cross - Material Issue We have adopted electronic votes as one of the means which shareholders may exercise • Deputy CEO of Central Policy Strait Development Foundation Identi cation their voting rights in shareholders meetings since 2012. By doing so, we ensure that Council of KMT • Director of ChengHsin General Hospital Sustainability shareholders can exercise their votes in accordance with laws and participate in the • President of Cross-Strait Association Development Goals for Advancing Culture Creative Company's major decisions and election of directors/ independent directors. Total shares • Vice President of Buddha's Light Company Pro le Company Pro le held by shareholders via electronic votes presented representing 82.13% of shares at International Association R.O.C. About PEGATRON Pegatron's 2017 annual general shareholders’ meeting. All agenda items, whether it • Honorary President of Financial Performance Confucianism and Taoism involves an acknowledgment or discussion, are fully discussed by participating Academic China Globalization • Lifetime Volunteer of John Tung Arrangement shareholders before proceeding with the vote. The numbers of votes in favor, against and abstain for each agenda item are listed in detail in the meeting minutes and disclosed on Foundation Award List the Market Observation Post System. • Ph.D of Business Management, • Chairman of Yangtze Associates Sustainable Sustainable National Chengchi University • Director and President of Huiyang Private Management Management • Political Deputy Minister, the Equity Fund Co., Ltd. Corporate Governance Ministry of Finance, R.O.C. • Director of Asustek Computer Inc. Code of Conduct • Chairman of Bank of Taiwan • Independent Director of ASRock Director Tze-Kaing • Executive Secretary of National Incorporation Information Security Information of Board of Directors and Supervisors are Yang Development Fund, Executive Yuan • Independent Director of DBS Bank Risk Management listed in the following table: • President of China Development • Director of TTY Biopharm Company Limited Regulatory Compliance Industrial Bank • Director of Taiwan Stock Exchange Responsible Responsible • Associate Professor of MBA at • Director of CHIEN KUO Construction Co., LTD. Partnership Partnership Title Name Education and Experience Current Function National Chengchi University • Director of Airiti Inc. Customer Service Customer Service • Chairman and Group CEO of Pegatron Corp. • Bachelor of Economics, National • Master degree in computer and • Director of Kinsus Interconnect Taiwan University Sustainable Sustainable communication engineering, Supply Chain Supply Chain Technology Corp. • Master degree in Economics, National Taipei University of • Director of ASRock Incorporation National Taiwan University Sustainable Sustainable Technology • Ph.D. in Economics, Case Western Environment Environment Chairman T.H. Tung • Director of AzureWave Technologies, Inc. • Honorary PH.D in Engineering, • Director of FuYang Technology Corp. Reserve University Low Carbon & Energy Low Carbon & Energy National Taipei University of • Chairman of Lumens Digital Optics Inc. • Assistant Professor, Department of Greenhouse Gas Greenhouse Gas Technology • Chairman of Pegavision Corp. Economics, Ohio State University • Vice Chairman of Asustek • Director of Casetek Holdings Limited (CAYMAN) • Associate Professor, Professor and Sustainable Design Sustainable Design Department Chair of Economics, Environmental Environmental • Deputy Chairman and Deputy Group CEO National Taiwan University Protection Protection • Master degree in electrical of Pegatron Corp. • Dean of School of Management at engineering, University of Southern • Chairman of Casetek Holdings Joyful Work Joyful Work Deputy Jason DAI-HE National Central University • Independent Director of SinoPac Holdings California Limited(CAYMAN) Chairman Cheng Investment • Professor and Director of Graduate • Independent Director of SinoPac Employment Employment • President and CEO of Pegatron Corp. • Chairman of FuYang Technology Corp. Relationship Relationship Institute of Industrial Economics at Securities Corp. • Deputy General Manager of Asustek • Chairman of AzureWave Technologies, Inc. Director Co., Ltd. National Central University • Independent Director of Asia Cement Corp. Attracting & Attracting & • Director of Alcor Micro Corp. Rep. : • Visiting Professor of Freie Nurturing Talent Nurturing Talent • BBA, National Taiwan University Schive, Chi Universität Berlin, FU Berlin Occupational Occupational • MBA, University of • Deputy Minister of Council for Health & Safety Health & Safety • Director of Yangtze Associates Wisconsin-Madison • Independent Director of Ardentec Economic Planning and Employee Care Employee Care Director C.I. Chia • Vice President, Citibank, N.A.Taipei Corporation Development, Executive Yuan Social Care Social Care Branch • Supervisor of Airiti Inc. • Chief Negotiator of Taiwan's • President, Individual Financial accession to General Agreement Social Welfare Social Welfare Services Group, Bank SinoPac on Trade in Services (GATS) Community Community • Deputy chairman of Asia-Paci c Involvement Involvement • LL.B., National Taiwan University Economic Cooperation, APEC Appendix-Index Appendix-Index • LL.M., University of British Columbia • Premier of Taiwan Academy of • LL.M., Harvard Law School Banking and Finance GRI content index GRI content index • S.J.D., Harvard Law School • Chairman and Managing Partner of Lee • Chairman of Taiwan Stock United Nations Global United Nations Global • Vice Chairman & Secretary-general and Li Attorneys-At-Law Exchange Compact Index Compact Index Director C.V. Chen and Director of Straits Exchange • Director of Asia Cement Corporation • Minister without Portfolio of Sustainability Sustainability Foundation (SEF) Executive Yuan Development Goals Development Goals • President of The Red Cross Society of the United Nations of the United Nations of The Republic of China Statement Statement 15 HONG-YE • Bachelor degree in Industrial and protect the rights and interests of shareholders and implement Corporate Governance. Business Management, Tatung Editorial Principles Editorial Principles Investment Institute of Technology • President and CEO of Pegatron Corp. A Word from A Word from Director Co., Ltd. Rep. : • Chief Operating O cer of Pegatron the CEO the CEO • Supervisor of FuYang Technology Corp. Syh-Jang Liao Corp. 1. Board Meeting Identi cation & Identi cation & • Senior Vice President of Unihan Corp. Communication Communication Pegatron’s Board includes professionals from industries, nancial and other professional • Director of Polytronic Technology Corp. Social Responsibility Indepen- • B.S., Statistics, National Chengchi • Independent Director and Managing elds. The Board consists of 11 directors, and 3 of them are independent directors. To Commitment C.B. Chang University Director of Far Eastern International Bank comply with Securities and Exchange Act, Pegatron has established “Rules of Procedure dent Stakeholder • Deputy General Manager of China • Independent Director of Raydium for Board of Directors Meetings” for compliance. Communication Director Development Industrial Bank Semiconductor Corp. Material Issue • Manager of Far Eastern Textile Ltd. • Independent Director of The Board performs its authorities and duties in accordance with related laws and rules to Identi cation Standard Foods Corp. establish internal management regulations for the supervision of management Sustainability • Electrical Engineering, National performance and the determination of major issues in order to maximize shareholders’ Indepen- • President & GM of Havix Electronics Co., Ltd. Development Goals Chun-Bao Taipei Institute of Technology • Independent Director of Kinsus equity and ful ll loyal duties. dent • President & GM of Havix Electronics Company Pro le Company Pro le Huang Interconnect Technology Corp. Director Co., Ltd. 6 meetings of the Board of Directors were held in 2017. The average attendance rate was 98.48%. About PEGATRON Financial Performance • Provincial Keelung Senior High School • Group President of Landis Hotels Globalization Arrangement and Resorts 2. Audit Committee • Country Manager of American Award List Express Inc. Taiwan Pegatron’s Audit Committee was established in year 2013 and is composed of the entire Indepen- • General Manager of the Grand Hotel Sustainable Sustainable • Independent Director of Shinkong Management Management dent C.S. Yen • Chairman of Taiwan Visitors Association number of independent directors in accordance with law. The Board has established Insurance Co., Ltd. Corporate Governance Director • Paci c Asia Travel Association (PATA) “Audit Committee Charter” for compliance. The main function of the Audit Committee is • Young Presidents’ Organization to supervise fair expression of Pegatron’s nancial reports, the hiring (and dismissal) Code of Conduct (YPO) Asia Conference Information Security • Chairman for Asia Paci c region of independence and performance of certi cated public accountants, the e ective Risk Management The Leading Hotels of The World implementation of the internal control system, compliance with relevant laws and Regulatory Compliance regulations and management of existing or potential risks. Responsible Responsible Pegatron’s Audit Committee shall convene at least once quarterly and may invite certi ed Partnership Partnership List of Major Shareholder: public accountants, internal audit o cers and managers of nance and accounting to join. Customer Service Customer Service As of 08/07/2017 5 meetings of the audit committee were held in 2017. The average attendance rate was 100% Sustainable Sustainable Supply Chain Supply Chain Shareholder's Name Shareholding Percentage Sustainable Sustainable Asustek Computer Inc. (Representative: Jonney Shih) 17.17% Environment Environment 3. Remuneration Committee Low Carbon & Energy Low Carbon & Energy T.H.Tung 3.57% Greenhouse Gas Greenhouse Gas Jonney Shih 2.57% Pegatron’s Remuneration Committee was established in year 2011 and is composed of the 3 independent directors. The Board has established “Remuneration Committee Sustainable Design Sustainable Design Ted Hsu 2.16% Environmental Environmental Charter” for compliance in accordance with the law. Protection Protection GDR-Pegatron Corporation 1.96% The functions of the Committee are: Joyful Work Joyful Work Morgan Stanley & Co. International Plc. 1.49% (1) Professionally and objectively evaluate the policy and system for compensation of Employment Employment Cathay United Bank in Custody for Expert Union Limited the directors, supervisors, and managerial o cers of this Corporation. Relationship Relationship Investment account 1.47% (2) Submit recommendations to the board of directors for its reference in decision making. Attracting & Attracting & Nurturing Talent Nurturing Talent Citi (Taiwan) Bank in Custody for Government of Singa- The Remuneration Committee shall convene at least twice yearly. Occupational Occupational pore Investment 1.38% 5 meetings of the remuneration committee were held in 2017. The average attendance rate Health & Safety Health & Safety Vanguard Emerging Markets Stock Index Fund, A Series was 93.3%. Employee Care Employee Care 1.26% Social Care Social Care of Vanguard International Equity Index Funds JPMorgan Chase Bank, N.A., Taipei Branch in Custody for Social Welfare Social Welfare 1.12% Community Community Stichting Depositary APG Emerging Markets Equity Pool Involvement Involvement Appendix-Index Appendix-Index Code of Conduct GRI content index GRI content index United Nations Global United Nations Global Integrity is the rst priority to build a good business culture. Compact Index Compact Index Board and Subsidiary Committees Sustainability Sustainability Development Goals Development Goals By complying with Taiwan Company Act, Securities and Exchange Act and other related Because the importance of business ethics and corporate responsibility is more than of the United Nations of the United Nations regulations, Pegatron’s Board has set up two subsidiary committees: Audit Committee before, a sustainable corporate should earn the reliability and respect from all kinds of Statement Statement and Remuneration Committee in order to strengthen the powers of the board of directors, 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 business integrity management, 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 to the Board of Directors are reported 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. We not only perform it internally, but also promote it to our supply chain. Prior to any business engagement, the Company checks the partner’s legality and its records of ethical conduct. All long term suppliers are required to sign the “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 2017 was about 78%. Integrity is the rst priority to build a good business culture.
Because 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
16 our core value, and it is the basic discipline for us. To improve business integrity con ict of interests and appropriate reporting channels to re ect any potential risk. Editorial Principles Editorial Principles management, relevant departments are assigned to establish the Corporate Ethical A Word from A Word from Management Policy and the prevention system against corruption and malfeasance. The PEGATRON regularly conducts risk assessment related with nancial and operation the CEO the CEO implementation results and compliance of the policy to the Board of Directors are for all important operation sites, and the major risks identi ed are sales and Identi cation & Identi cation & reported by designated personnel. Corporate Ethical Management Policy is clearly stated procurement. We perform the control activities according to the results of risk Communication Communication in the internal policy and external documents. Board of Directors and management team assessments. For the higher risk of operational activities, we establish an e ective Social Responsibility are fully committed to implement such policy rigorously and thoroughly in internal accounting system and internal control system, and review them at any time. Audit Commitment management and external business dealings. O ce also develops the annual audit plan based on the results of risk assessments Stakeholder Communication and escalates to the Board of Directors with audit reports. Material Issue From the management level to employees, we commit to abide by business ethics and Identi cation con dentiality. We not only perform it internally, but also promote it to our supply chain. We establish operational procedures for handling reported cases and protect the Sustainability Prior to any business engagement, the Company checks the partner’s legality and its whistleblowers as the content of the reported cases are handled in con dentiality Development Goals records of ethical conduct. All long term suppliers are required to sign the “Statement of to avoid any unfair treatment or retaliation. In 2014 and 2015, there were cases Company Pro le Company Pro le Integrity” which stipulated the contractual liability for violation of ethical conduct, to build regarding leaking the company’s trade secrets, which violated the work rule and About PEGATRON a good business environment together. The ratio of the suppliers that undersigned the business code of conduct and were handled base on our internal norms for Financial Performance commitment till the end of 2017 was about 78%. punishment and litigation. The case in 2014 was ruled in our favor in 2017. The case Globalization Arrangement in 2015 was still under litigation in 2017. We did not have any other similar case in Award List PEGATRON commits to conduct business ethics and sticks to the correct path of 2017 except for the case in 2015. Sustainable Sustainable integrity. Anyone should abide by the highest standard of probity. Any kind of Management Management corruption, blackmailing or embezzling public funds is strictly prohibited. All sta s in Corporate Governance their work should abide by the principles as follows: Code of Conduct 1. Everyone in the company should be honest to his or her customers and vendors Information Security Information Security Risk Management 2. It is strictly prohibited for any sta to receive or claim directly or indirectly for gifts, favorable dealings or other special treatments by the abuse of one’s working Regulatory Compliance Privacy and Intellectual property are highly valued and managed Responsible Responsible power. Partnership Partnership 3. It is strictly prohibited for any sta to use their occupation power to receive or by implementing information security control. Customer Service Customer Service claim directly or indirectly unreasonable interests or other corrupt practices. Sustainable Sustainable Supply Chain Supply Chain 4. It is strictly prohibited for any sta to extort property by the abuse of one’s working As an excellent partner in green design, manufacturing and service for our customers, Sustainable Sustainable power. protect customers’ privacy and intellectual property is regarded as a very important duty Environment Environment 5. It is strictly prohibited for any unauthorized use of the name of the company other in PEGATRON. To show our determination of information protection for the products, Low Carbon & Energy Low Carbon & Energy than business related matters. assets and data of customers, the CEO approved the “Con dentiality Policy” in 2010. Greenhouse Gas Greenhouse Gas 6. It is strictly prohibited to embezzle the company’s property for personal interests. Under the control of the policy and relevant processes, all information about the products Sustainable Design Sustainable Design and data of customers are con dential. All employees have the responsibility of not Environmental Environmental disclosing, not collecting and not using the information for non-business scope. By Protection Protection PEGATRON’s Board of Directors approved “Ethical Corporate Management Policy” protecting their assets and providing a complete information security environment, we Joyful Work Joyful Work and “Codes of Ethical Conduct” on November, 2014. We stipulated the preventive earn customers’ trust. Employment Employment measures of unethical conduct, penalties and grievance procedure according to Relationship Relationship our “Business Ethics and Code of Conduct” and “Business Gifts and Entertainment To meet customer requirements of information security, and protect customers’ privacy Attracting & Attracting & Nurturing Talent Nurturing Talent Policy”. All employees shall follow these guiding principles of integrity, honest, and intellectual property, PEGATRON has established an enterprise level security Occupational Occupational con dentiality and respect. In addition, we also set up the “Business Ethics advocacy information task force for governing the data to reduce the risk level and meet our Health & Safety Health & Safety website “and organize training programs on corporate ethics management each customer needs. We rigorously review data, business application, operation system, Employee Care Employee Care year, to strengthen the ethics concepts of our employees. intranet, extranet, physical environment, procedures & policy as well as entirely control Social Care Social Care “Ethical Corporate Management Policy” and “Codes of Ethical Conduct” were when creating an account, requiring a password, applying and setting the access Social Welfare Social Welfare published on the Company website: authority, applying an ID, limiting log in authority, recording audit records and getting Community Community http://www.pegatroncorp.com/investorRelation/majorInternalPolicies multiple certi cations. Involvement Involvement Appendix-Index Appendix-Index In order to progress towards sustainability, PEGATRON not only implements the For the actual construction and building protection of information assets, we control the GRI content index GRI content index relevant actions internally, but also joins “Responsible Business Alliance (RBA)” and security in all entrances strictly and implement the Disaster Recovery System. Also, we United Nations Global United Nations Global complies with the “RBA Code of Conduct”. We also formulate “Business Ethics Code implement the structure of High-Availability System to ensure information continuity. We Compact Index Compact Index of Conduct” as an internal management procedure to request all employees to use encryption system to protect and control the access authority for con dential and Sustainability Sustainability Development Goals Development Goals obey. PEGATRON sets forth penalties for violation of code of conduct and the sensitive documents, and also adopt encryption and private communication protocol to of the United Nations of the United Nations grievance mailbox for reporting of any violation. Audit O ce handles all reported ensure the con dentiality of important data. Statement Statement cases. For the potential con ict of interests, we establish measures to prevent
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 concept introduction, standard operating procedure introduction, courses for 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, the Company regularly conducts internal audits every year to meet customer requirements. Through continuous improvement and reduction of threaten posed by information security incidents and impacts, PEGATRON has no breach of each customer’s privacy in 2017. Privacy and Intellectual property are highly valued and managed by implementing 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 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, and protect customers’ privacy and intellectual property, PEGATRON has established an enterprise level security information task force 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 control when creating an account, requiring a password, applying and setting the access authority, applying an ID, limiting log in authority, recording audit records and getting multiple certi cations.
For the actual 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.
17 In addition to periodical backup, we implement remote backup mechanism to ensure the , the Company evaluates the nancial conditions of these customers continually to reduce credit risk from accounts receivable. Moreover, the Company also Editorial Principles Editorial Principles completeness of data preservation. To enhance the awareness of security for all relevant periodically evaluates the Company’s nancial positions and the possibility of A Word from A Word from personnel, PEGATRON not only propagates information security and con dentiality the CEO the CEO periodically, but also performs relevant customized training programs for di erent collecting trade receivables. Thus, there is no signi cant credit risk. Identi cation & Identi cation & personnel according to their operations, include security operating concept introduction, 3. Liquidity risk：The capital and working funds of the Company are su cient to Communication Communication standard operating procedure introduction, courses for crime prevention and the meet its entire contractual obligations. Therefore, no liquidity risk exists. Social Responsibility compliance with security policy. Besides, employees whose operations are related to 4. Cash ow and interest rate risk：The Company’s interest rate risk arose from Commitment con dential information need to sign con dentiality agreements and have the obligation short-term and long-term loans bearing oating interest rates. Future cash ow Stakeholder Communication of accepting information security audits. will be a ected by a change in market interest rate. Material Issue Identi cation To ensure the e ectiveness of information security management system, the Company 1. Our company has obtained Property Insurance and Public Liability Insurance for Sustainability regularly conducts internal audits every year to meet customer requirements. Through our own and rental o ces as well as factory buildings. The insurance coverage Development Goals continuous improvement and reduction of threaten posed by information security includes structures, business repairs, equipment, business appliances, Company Pro le Company Pro le incidents and impacts, PEGATRON has no breach of each customer’s privacy in 2017. II. miscellaneous equipment, etc. In addition, the loss preventions are conducted About PEGATRON Property and arranged every year (such as infrared detection and plan check). Financial Performance 2. Our company applied STP (Stock throughput) insurance includes standard and Globalization excess insurance for all goods. The STP insurance covers 110% of invoice value of Arrangement goods in transit and the risk prevention course is arranged on yearly basis (Cargo Award List transportation risk prevention advices and training courses). Sustainable Sustainable Risk Management Management Management PEGATRON builds Materials Management e-platform and many relevant internal Corporate Governance Identify and control the risks, then transform the risks to opportunities. procedures to control materials. Besides, we not only perform periodical external Code of Conduct III. audits, but also de ne the rules for parts and materials to eliminate the risks. In Information Security Hazardous addition, we formulated several technical standards and veri cation procedures for Risk Management In order to achieve the target of sustainable development and e ciently reduce the risks of Substance the forbiddance of hazardous substances according to international standards Regulatory Compliance business continuity, we identify and control several kinds of risks during corporate and customers’ requirements, and requests our suppliers to comply with Responsible Responsible operations. For being towards sustainability, risk management is not only taken into our daily Partnership Partnership operations, but also regarded as one of the determinant factors in corporate’s governance. these requirements. Customer Service Customer Service In order to meet the requirements from customers and make sure all stages of Sustainable Sustainable IV. Supply Chain Supply Chain Compliance operation, production and service, we have a procedure for external document Sustainable Sustainable The identi cation and management of various risks are of Customers management, including identi cation, check and control. For the international and Environment Environment local regulations, we have quali ed personnel to check the compliance of all listed as below: and Legal Low Carbon & Energy Low Carbon & Energy relevant requirements, modify the internal procedures and conduct the operational Requirements Greenhouse Gas Greenhouse Gas control measures. Sustainable Design Sustainable Design Risk Category Descriptions Environmental Environmental 1. Market risk：The Company’s purchases and sales are denominated mainly in US PEGATRON maintains more than two quali ed raw material suppliers for major parts Protection Protection dollars, and in consequence, it is exposed to the current and future foreign currency V. to ensure supply exibility and pricing advantages so as to achieve cost reduction. Joyful Work Joyful Work risk that arose from cash ows of foreign currency assets and liabilities. However, Raw Materials For production security, however, certain manufacturing processes are still Employment Employment and required to be conducted manually. In response to this issue, we invest in Relationship Relationship the risks may be regarded as insigni cant, because foreign currency losses from automation equipment to reduce the reliance on labors and improve product Attracting & Attracting & sales are subsequently o set by the foreign currency gained from purchases. Manufacturing Nurturing Talent Nurturing Talent 2. Credit risk：The primary potential credit risk is from nancial instruments include Safety quality. Besides, through allocate labors across factories appropriately, we Occupational Occupational cash, equity securities, and accounts receivable. The Company deposits cash in minimize the impacts of labor shortage. Health & Safety Health & Safety di erent nancial institutions. The Company manages credit risk exposure related Employee Care Employee Care I. to each nancial institution and believes that there is no signi cant concentration The de nition of information security of PEGATRON is to prevent the information Social Care Social Care related assets from su ering variety of security threats, and make sure that our Finance of credit risk on cash and equity securities. The Company only transacted with the VI. Social Welfare Social Welfare approved third parties with good nancial conditions and reputation. For those Information business can operate continuously so that the losses can be eliminated or minimized as much as we could. We strengthen the actual construction and Community Community customers with poor nancial situation, the Company would transfer the risks Security Involvement Involvement buildings, techniques and provide training programs for the relevant personnel to Appendix-Index Appendix-Index through acquiring guarantees or transacting by L/C. Therefore, the Company believes that there is no signi cant credit risk. In compliance with the Company’s reduce the risk of information security e ectively. GRI content index GRI content index customer credibility evaluation policy, the Company evaluates the customer’s United Nations Global United Nations Global Headquarters (HQ) located in Taiwan mainly operates activities in R & D, customer Compact Index Compact Index credibility and collectability of notes and account receivables regularly before VII. service and administrative support, there is no signi cant negative impact on local Sustainability Sustainability doing business. Thus, there is no signi cant issue on doubtful accounts. Impact on communities. The facilities located worldwide are built in accordance with local Development Goals Development Goals The major customers of the Company are mainly from the high-tech computer of the United Nations of the United Nations Community regulations and implemented the environmental impact assessments to meet local industry. As the customers of the Company have good credits and pro t records Statement Statement regulatory requirements. For the noise or pollutant emissions from our 18 manufacturing processes, we regularly conduct environmental sampling to avoid anti-trust and monopoly events and there was no signi cant non-compliance with laws Editorial Principles Editorial Principles direct and indirect impacts on the local community environment, and also continue or regulations in 2017. A Word from A Word from to do environmental protection. In addition, we focus on surrounding environment the CEO the CEO including transportation and green area coverage. We did not have operational Identi cation & Identi cation & cases that cause actual negative impacts on the local communities in the reporting Communication Communication year. Social Responsibility Commitment To reduce the impacts of products for environment, in our early prevention policy, Stakeholder we emphasize to exclude the known or potential impacts on human and Communication environmental substances and materials. We implement precautionary actions for Material Issue VIII. collecting information of substances to reduce potential environment impacts. The Identi cation Risk Sustainability resources include current scienti c researches, vendors, customers, international Management Development Goals treaties and conventions, legislations, non-governmental organizations, recyclers, on Company Pro le Company Pro le and our own internal laboratory test results. We eliminate the use of hazardous About PEGATRON Environmental substances in the design stage after our assessments. Moreover, we seek to go Financial Performance Impact beyond legislated mandates. For example, we eliminate or restrict the usage of Globalization materials in our products and processes that may threat human health even though Arrangement the materials have not been proven harmful to human health or restricted by laws. Award List Sustainable Sustainable Management Management The major potential risks that may occur while PEGATRON’s operation include: (1) To receive or claim directly or indirectly for any kind of corruption, blackmailing Corporate Governance or embezzling public funds, gifts, favorable dealings, other special treatments by the Code of Conduct abuse of one’s working power, or unreasonable interests or other corrupt practices. Information Security (2) To embezzle the company’s property, information or use their occupation power Risk Management for personal interests. Regulatory Compliance IX. To e ectively control these risks, we’ve built a policy and several programs, as well Responsible Responsible Partnership Partnership Business Ethics as implement an e ective accounting system and an internal control system to Customer Service Customer Service improve the transparency on the process of the company. We perform it internally Sustainable Sustainable and promote it to our supply chain as well. Prior to any business engagement, the Supply Chain Supply Chain Company checks the partner’s legality and its records of code of conduct. We not Sustainable Sustainable only de ne the responsibility of any violation to the standard of integrity in the Environment Environment contract, but also continue to reinforce the ethical concept and provide training Low Carbon & Energy Low Carbon & Energy programs to our partners, so as to reduce the possibility of corruption. Greenhouse Gas Greenhouse Gas Sustainable Design Sustainable Design Environmental Environmental Protection Protection Joyful Work Joyful Work Employment Employment Regulatory Compliance Relationship Relationship Attracting & Attracting & Nurturing Talent Nurturing Talent The basic principle is in accordance with the laws and to strictly Occupational Occupational Health & Safety Health & Safety abide them inside out. Employee Care Employee Care Social Care Social Care Since inception, PEGATRON complies with relevant laws and regulations and Social Welfare Social Welfare continually follows any policy and law that could have signi cant impacts on our Community Community company's nance and business. Our legal team noti es relevant departments the latest Involvement Involvement developments of laws and regulations, and assists our company to comply with such Appendix-Index Appendix-Index laws and regulations. It not only reduces the direct nancial risks, but also avoids the GRI content index GRI content index indirect business reputation risks. After receiving the latest laws and regulations, United Nations Global United Nations Global Compact Index Compact Index relevant units will set the management procedures and compliance audits of such laws Sustainability Sustainability and regulations accordingly to reduce illegal risk. Our legal team also holds relevant Development Goals Development Goals training programs, and we not only hope colleagues to follow the regulations, but also of the United Nations of the United Nations avoid any operation led to breach. PEGATRON has not involved in any anti-competitive, Statement Statement Navigate Responsible Partnership the The function of partnership is to act as a connecting role Future in entire value chain to bene t sustainable development. 20 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 research on the CEO the CEO classi cation of metals, plastics, coatings, inks and other raw materials, with the best costs Identi cation & Identi cation & Improve the process on service and accumulate core techniques for customers to develop the products that meet the environmental objectives. For the Communication Communication to enhance the satisfaction. development of clean production process, we focus on meeting customers’ green product Social Responsibility speci cations and carbon reduction requirements as the core elements. The short-term Commitment goal is to lean the current processes and the long-term goal is to simplify them and reduce Stakeholder The business strategy of PEGATRON is to be an expert in design and manufacturing as Communication well as to improve the service process for global arrangement to meet customers’ needs equipment used when developing the green materials, and to nd out a new clean Material Issue thoroughly. By providing customers with best service, they can focus on brand and production way. PEGATRON has a very prospective research ability on the ultimate goal to Identi cation channel operations and we can earn customer satisfaction. “Navigate the Future” is be non-toxic, pollution-free, environmental friendly, energy saving and carbon reduction Sustainability PEGATRON Group’s business philosophy. We navigate our customers to obtain business to achieve the responsibility of a corporate citizen. Development Goals opportunities ahead of the market with our innovative technology and design for Company Pro le Company Pro le service. We provide new integrated service from designing, manufacturing to after-sales About PEGATRON With customers’ global layouts, our overseas customer service teams are located around service. With a complete service experience, we can quickly and e ciently ful ll our Financial Performance the world to meet customers’ needs. Therefore, we are able to provide the most immediate customers’ expectations. Globalization and convenient services, as well as o er the most comprehensive support to customers Arrangement Our research and development teams whole heartedly serve our customers from the rst around the world with our well-established service network composed of tens of service Award List stage of product development. After an in-depth understanding of customer needs and sites on all continents. Furthermore, we provide our customers with customized service Sustainable Sustainable planning, immediate and e ective technical support, experienced repair teams, professional Management Management expectations for new products, we begin with the viewpoints of users and combine with the aesthetics and innovations to develop new products. We completely state and explain supply chain management, friendly IT systems, worldwide service sites, and the greatest Corporate Governance Corporate Governance enthusiasm with a superior commitment. Code of Conduct Code of Conduct to customers from di erent levels for positioning of products, special materials and style Information Security Information Security options, parts selection, product functions, appearances and packaging, production Risk Management Risk Management conditions, and even the challenges that we may face in the manufacturing processes or PEGATRON not only has high expectation and responsibility for our service quality, but impacts on the environment. Meanwhile, we also pay attention to test ows. We not only Regulatory Compliance Regulatory Compliance also pays great attention to the voice of consumers. Through a customer satisfaction Responsible Responsible pursue the most advanced testing technologies, but also invest in professional testing survey or a QBR (Quarterly Business Review) meeting, we can listen closely and directly to Partnership Partnership equipment. The only purpose is to design perfect products of maximizing customer’s customer’s suggestions and concerns. According to the QBR results and the opportunities Customer Service interests to be in line with market expectations. for improvement gured out by customers, we xed those issues through internal Sustainable To improve product value and accumulate the core technology, PEGATRON commits improvements and professional training programs within the timeframe set to reduce Supply Chain defects to pursue 100% customer satisfaction. Sustainable Sustainable to train innovative talents and develops diversi ed product applications. We got the Environment Environment total number up to 153 global patents certi ed in 2017 to create maximum value for Low Carbon & Energy Low Carbon & Energy customers. Besides, we actively investigate customers’ satisfactions by customer surveys about the Greenhouse Gas Greenhouse Gas aspects of our products, services, quality, delivery, technical support, business response Sustainable Design Sustainable Design 90 and hazardous substance free management. We can understand the overall management Environmental Environmental 81 and operational performance from customer’s point of views to adjust the direction and 80 Protection Protection management with in-depth reviewing, and propose the speci c strategy and programs Joyful Work Joyful Work 70 for improvement. Employment Employment 60 Relationship Relationship 50 Attracting & Attracting & Based on the statistical results of customer satisfaction surveys, the annual average Nurturing Talent Nurturing Talent 40 31 customer satisfaction score of PEGATRON in 2017 was 83.5. We respect the spirit of continuous Occupational Occupational 30 improvement to perform improvement projects for de ciency. For customer complaints, each Health & Safety Health & Safety 22 20 business group/unit and factory immediately convene meetings to review and conduct Employee Care Employee Care the improve measures as well as track the status of the improvements. At the same time, Social Care Social Care 10 6 2 2 2 2 1 1 1 1 1 we request the customer complaints should be xed as soon as possible. Based on the Social Welfare Social Welfare 0 historical information, the customer satisfaction ascends gradually, which shows our Community Community Taiwan United States United Kindom Europe Belgium Denmark Netherland Involvement Involvement China Japan Germany France Italy Spain improvement performance. Appendix-Index Appendix-Index GRI content index GRI content index United Nations Global United Nations Global Compact Index Compact Index Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 21 Customer Satisfaction Results for Various Products: Editorial Principles Editorial Principles Sustainable Supply Chain A Word from A Word from the CEO the CEO Product Identi cation & Identi cation & 5 Server Communication Communication Environmental Quality Build a sustainable supply chain through communication, monitoring, Social Responsibility (including HSF) 4 Industrial PC cooperation and growth together with our partners. Commitment Quality Service Stakeholder 3 Communication Consumer Supply Chain Status Material Issue 2 Electronics Identi cation █ Automotive Sustainability 1 Development Goals Electronics As an enterprise of information, communication and consumer electronics technology Company Pro le Company Pro le 0 System Product industry, PEGATRON provides the service mainly on research, design and manufacturing. About PEGATRON Our supply chain consists of raw material suppliers, equipment suppliers, waste disposal Financial Performance Ful llment vendors, material transportation vendors, service providers (such as security, food, cleaning), Account Globalization human resource agencies and so on. The main raw material suppliers of PEGATRON are Arrangement management electronic components and mechanical parts suppliers. We design and assemble nished Award List goods according to customer demands with components provided by our suppliers, and Sustainable Sustainable then deliver them to the designated sale territories. More than 1,700 suppliers cooperated Management Management with PEGATRON in 2017, and most of them come from Taiwan, China, United States, Japan Corporate Governance Corporate Governance RMA service Technical support and South Korea. Since the main production base is in China, 90% of our suppliers are located Code of Conduct Code of Conduct in Asia. The supplier type includes manufacturers, authorized agents and so on. Their industry Information Security Information Security types focus on capital-intensive and technology-intensive. PEGATRON promotes local Risk Management Risk Management purchase continuously. It not only reduces the transportation costs and responds to carbon Regulatory Compliance Regulatory Compliance Customer Overall Satis cation in 2013~2017 reduction e ort, but also enhances local employment opportunities. Before we cooperate Responsible Responsible with suppliers, we not only consider on technology, quality, delivery and cost, but also Partnership Partnership Overall Satisfaction (%) Customer Complaint (number) request suppliers to commit to environmental protection, occupational safety and health, Customer Service and labor rights so as to ful ll our corporate social responsibility. Sustainable 94% Supply Chain 91.3% 91.3% 45 92% 40 Sustainable Sustainable 37 37 40 PEGATRON plays an important role in the electronic supply chain, so that the management Environment Environment 90% 35 of supply chain is one of the key issues to us. According to the customer requirements, legal Low Carbon & Energy Low Carbon & Energy 88% 30 requirements and international trends, we have written internal procedures to monitor the Greenhouse Gas Greenhouse Gas 86% 85.2% 25 25 performance of suppliers, including advocacy, promotion and audit. Besides, we hold Sustainable Design Sustainable Design 84% 82.5% 18 83.5% 20 several training programs to introduce the concept and develop ability of sustainability into Environmental Environmental 82% 81.6% 15 the entire electronic supply chain. In addition, we also manage our vertical integration Protection Protection a liates and subsidiaries through the supply chain management process to enhance the 80% 10 Joyful Work Joyful Work sustainable development of electronic supply chain. Employment Employment 78% 5 Relationship Relationship 76% 0 Attracting & Attracting & 2013 2014 2015 2016 2017 Nurturing Talent Nurturing Talent Supplier Risk Assessment Occupational Occupational Health & Safety Health & Safety To make sure that suppliers meet our requirements of Quality, Cost, Delivery, Service, Tech- Employee Care Employee Care Our priority is to reach the highest satisfaction of customers and business partners. By nology and Corporate Social Responsibility, they have to participate in PEGATRON’s QBR Social Care Social Care implementing the management systems of corporate social responsibility (PureCSR) and (Quarterly Business Review) regularly. Suppliers with outstanding performances would be Social Welfare Social Welfare quality with hazardous substance free (PureGMS), we continue to improve internal the long-term partners and have chances become our Annual Excellent Suppliers. Suppli- Community Community processes and build a good corporate image to meet customers' requirements. We even ers with bad performances will be regarded as unquali ed suppliers. If the nonconformities Involvement Involvement have a target to exceed customer expectations for better customer service management. are signi cant, PEGATRON will terminate the contractual relationships with them when Appendix-Index Appendix-Index necessary. At the same time, Procurement Unit regularly review the nancial statements GRI content index GRI content index and conduct the nancial risk assessments of suppliers to ensure that they meet the low risk United Nations Global United Nations Global level of nancial standard. Compact Index Compact Index Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement As an enterprise of information, communication and consumer electronics technology industry, PEGATRON provides the service mainly on research, design and manufacturing. Our supply chain consists of raw material suppliers, equipment suppliers, waste disposal vendors, material transportation vendors, service providers (such as security, food, cleaning), human resource agencies and so on. The main raw material suppliers of PEGATRON are electronic components and mechanical parts suppliers. We design and assemble nished goods according to customer demands with components provided by our suppliers, and then deliver them to the designated sale territories. More than 1,700 suppliers cooperated with PEGATRON in 2017, and most of them come from Taiwan, China, United States, Japan and South Korea. Since the main production base is in China, 90% of our suppliers are located in Asia. The supplier type includes manufacturers, authorized agents and so on. Their industry types focus on capital-intensive and technology-intensive. PEGATRON promotes local purchase continuously. It not only reduces the transportation costs and responds to carbon reduction e ort, but also enhances local employment opportunities. Before we cooperate with suppliers, we not only consider on technology, quality, delivery and cost, but also request suppliers to commit to environmental protection, occupational safety and health, and labor rights so as to ful ll our corporate social responsibility.
PEGATRON plays an important role in the electronic supply chain, so that the management of supply chain is one of the key issues to us. According to the customer requirements, legal requirements and international trends, we have written internal procedures to monitor the performance of suppliers, including advocacy, promotion and audit. Besides, we hold several training programs to introduce the concept and develop ability of sustainability into the entire electronic supply chain. In addition, we also manage our vertical integration a liates and subsidiaries through the supply chain management process to enhance the sustainable development of electronic supply chain.
Supplier Risk Assessment
To make sure that suppliers meet our requirements of Quality, Cost, Delivery, Service, Tech- nology and Corporate Social Responsibility, they have to participate in PEGATRON’s QBR (Quarterly Business Review) regularly. Suppliers with outstanding performances would be the long-term partners and have chances become our Annual Excellent Suppliers. Suppli- ers with bad performances will be regarded as unquali ed suppliers. If the nonconformities are signi cant, PEGATRON will terminate the contractual relationships with them when necessary. At the same time, Procurement Unit regularly review the nancial statements and conduct the nancial risk assessments of suppliers to ensure that they meet the low risk level of nancial standard.
22 Audit & Communication 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 PEGATRON obeys its supplier quality & CSR management procedures to ensure the quality the CEO the CEO requirements on this system to let all suppliers know. The annual supplier conference of components and their on time delivery. Besides, we also issue supplier assistance Identi cation & Identi cation & information is also uploaded to SRM. Functions related with PureCSR issues provided standard. With this standard, we can help suppliers to set up product HSF system, quality Communication Communication by SRM system include: system & process control standard, so as to improve suppliers’ product environment Social Responsibility Commitment quality, delivery quality and process capabilities. In the meanwhile, we ask new suppliers to • Hazardous Substance Management - Suppliers can upload documents include Stakeholder sign Pegatron Group’s Supplier Code of Conduct Agreement and commit their operations Communication certi cates of non-hazardous substances, composition tables or SDSs (safety data are in accordance with PureCSR policy and requirements. Material Issue sheets) and third party test reports. Identi cation Sustainability • Con ict Minerals Survey System – We follow Con ict Minerals Reporting Template Development Goals (CMRT) and invite our suppliers to upload their CMRT reports on this system. Supply Chain Management: Company Pro le Company Pro le About PEGATRON • PureCSR Supplier Management – We announced our PureCSR requirements and Financial Performance standard on SRM system so that suppliers can upload them to follow-up. Globalization Arrangement Award List • Business Ethics Management – The complaint mailbox for business ethics and statement Sustainable Sustainable of integrity are available for suppliers to download on SRM system. Management Management Contract and CoC Corporate Governance Corporate Governance • PureGMS Supplier Management – Suppliers can regularly update their ISO certi cates (New suppliers) Code of Conduct Code of Conduct and reports based on related requirements (e.g. China Compulsory Certi cation Information Security Information Security Reports, Finished Product Inspection Reports, and so no). Risk Management Risk Management Regulatory Compliance Regulatory Compliance Responsible Responsible Supplier Chain Partnership Partnership Managment Customer Service Sustainable Regulation Supply Chain and PureGMS & CSR Audit Sustainable Sustainable Compliance (All suppliers) Environment Environment (New suppliers) Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas Sustainable Design Sustainable Design Environmental Environmental Protection Protection Joyful Work Joyful Work New Suppliers Selection Employment Employment Relationship Relationship Based on PEGATRON’s requirements in internal procedures to audit new suppliers, verify Attracting & Attracting & Nurturing Talent Nurturing Talent the compliance on their HSF management system, quality management system & process Occupational Occupational control standard is required. A new supplier shall be certi ed with one management Health & Safety Health & Safety system among ISO 9001, IATF 16949 or TL 9000. Except for meeting the standards of Employee Care Employee Care quality and green management system, new suppliers shall also be in accordance with Social Care Social Care PEGATRON CSR policy. They are not only requested to sign Pegatron Supplier Code of Social Welfare Social Welfare Conduct Agreement, but also evaluated with their compliance on governance, Community Community environmental protection and social aspects based on the violation records revealed in Involvement Involvement public. Furthermore, the contracts between PEGATRON and suppliers also de ne that the Appendix-Index Appendix-Index suppliers shall comply with all relevant laws and the RBA Code of Conduct. If there is any GRI content index GRI content index severe violation, the business relationship could be terminated by PEGATRON. United Nations Global United Nations Global Compact Index Compact Index The ratio of the suppliers that undersigned Pegatron Supplier Code of Conduct Sustainability Sustainability Agreement till the end of 2017 was 74.2%. Also, there were 1,479 evaluations of Development Goals Development Goals supplier environmental performance conducted in 2017. of the United Nations of the United Nations Statement Statement 23 Annual Supplier Audit standards and requirements of supplier management. Our corporate social responsibility Editorial Principles Editorial Principles and con ict minerals requirements were also introduced simultaneously. Through the PEGATRON has implemented annually audits in accordance with internal procedures for A Word from A Word from Supplier Conferences, we delivered the concept of sustainable development to suppliers the CEO the CEO suppliers, as to ensure that suppliers comply with PureGMS and PureCSR requirements. and had a two-way communication with them. Identi cation & Identi cation & Any supplier does not pass the onsite audit will be asked to improve the non-conformities Communication Communication within deadline and complete the corrective actions. We classify the result of unquali ed Social Responsibility suppliers and report them to our Procurement Center as a reference for supplier management. Commitment Stakeholder Communication Material Issue Introduction Process for New Suppliers: Identi cation Sustainability Development Goals Company Pro le Company Pro le About PEGATRON 1. PEGATRON code of conduct(CoC) Financial Performance Pure GMS & CSR Audit 2. Requirment and regulation Compliance Globalization 3. Pure GMS & CSR Audit Arrangement Award List Yearly supplier New supplier Sustainable Sustainable Management Management Corporate Governance Corporate Governance Rejected Pass Code of Conduct Code of Conduct Information Security Information Security EvaluatedRejected supplier Quali ed supplier Risk Management Risk Management Regulatory Compliance Regulatory Compliance Re-Audit Pass Responsible Responsible Re-Audit Partnership Partnership Correction Customer Service and Sustainable Prevention Supply Chain Through the regular Supplier Conferences, we delivered the concept and communicated with them. Sustainable Sustainable Rejected Environment Environment Disquali ed Low Carbon & Energy Low Carbon & Energy Rejected Greenhouse Gas Greenhouse Gas supplier Sustainable Design Sustainable Design Con ict Minerals Environmental Environmental █ Protection Protection Joyful Work Joyful Work PEGATRON regularly conducts e-surveys for major suppliers every year to ensure that The mining industry in Democratic Republic of the Congo (DRC) and adjoining countries Employment Employment suppliers can meet CSR requirements, including management systems, labor rights, are occupied by certain non-governmental organizations or non-governmental military Relationship Relationship health and safety, business ethics, product responsibility, greenhouse gas emissions and groups which may cause serious social and environmental issues in the region, including Attracting & Attracting & other aspects on CSR. The number of major suppliers that were highly concerned in 2017 armed con ict, theft, extortion, illegal child labor, women captivity, deforestation, and so Nurturing Talent Nurturing Talent was 160 and we issued the e-survey questionnaires to all of them. The overall response on. To reduce the violation of human rights, many corporations have disclosed the sources Occupational Occupational Health & Safety Health & Safety rate and approved rate were 100% and 91.25% respectively. There were 14 suppliers that of metals to avoid using or importing “Con ict Minerals” from DRC illegally, or smuggled Employee Care Employee Care failed to the audits and all of them are included in 2018 annual supplier audit program to through surrounding countries to prevent above events from occurring. Social Care Social Care track their corrective actions continuously. In addition to e-survey, there were 36 suppliers Social Welfare Social Welfare that received on-site audits in 2017, all nonconformities were corrected within the due As a corporate citizen and one of Responsible Business Alliance (RBA) members, Community Community dates and approved by PEGATRON’s audit teams. PEGATRON not only discloses its con ict mineral statement on the company website, but Involvement Involvement also establishes an internal procedure to conduct the risk management of supply chain. Appendix-Index Appendix-Index Supply Chain Promotion We have launched con ict mineral investigation project since 2012 according to Organi- GRI content index GRI content index zation for Economic Co- operation and Development (OECD) Due Diligence Guidance. United Nations Global United Nations Global We regularly hold supplier seminars every year to advocate PureGMS & PureCSR policies, We follow Con ict Minerals Reporting Template (CMRT) founded by Responsible Minerals Compact Index Compact Index quality and hazardous substance free requirements and requirements. There were 6 Initiative (RMI) to establish PEGATRON’s SRM Con ict Minerals Survey System and invite Sustainability Sustainability Development Goals Development Goals PEGATRON supplier conferences held in di erent area, including HQ, Central China, South our suppliers to disclose the smelters' information related to their products and upload of the United Nations of the United Nations China and West China in year 2017. There were 714 suppliers and 1161 people in total CMRT to the system. Statement Statement joined the conferences. The main topics of the conference were green technology 24 Pegatron Con ict Minerals Management Flowchart Pegatron Supply Chain Replied Situation by Year Editorial Principles Editorial Principles Pegatron respects human rights and keeps concerning this issue, we continue to share A Word from A Word from the CEO the CEO our Con ict Minerals Policy and invite our suppliers to conduct due diligence investiga- 100% Identi cation & Identi cation & tion for the materials of their products to assure the metal sources of Tantalum (Ta), Tin Communication Communication (Sn), Tungsten (W) and Gold (Au) are not derived from mining in con ict region of the 96% Social Responsibility Democratic Republic of the Congo (DRC), and endeavors to ful ll the responsibility of a 95% Commitment corporate citizen. We do risk assessment and encourage our suppliers to ask non-compli- 91% 92% Stakeholder 90% Communication ant smelters or re neries in their supply chains to join the CFSI-CFSP audit. As a result, the 90% 87% Material Issue survey completion rate grows from 80% in 2012, continually promoted to 96% in 2017. For Identi cation 2017, 1,765 suppliers were surveyed and there were 96% suppliers completed this 85% Sustainability program in total. Through the result of the analysis, 1025 (compared to 2016:↑38) suppli- Development Goals ers had indicated their products and/or manufacturing processes contained these 4 80% Company Pro le Company Pro le con ict minerals that had been provided to Pegatron, including Tin (Sn) has the highest 80% About PEGATRON proportion of 93.5% (increasing 1.5% compared to 2016), followed by gold (Au) 79.2% Financial Performance (increasing 2.2%compared to 2016), Tungsten (W) 33.0% (increasing 1.0% compared to 75% Globalization 2016) and Tantalum (Ta) 25.3% (increasing 2.3% compared to 2016) (Table 2), which Arrangement 2012 2013 2014 2015 2016 2017 means there are more and more suppliers willing to reply the con ict minerals survey and Award List disclose all of minerals are sourced from quali ed smelters/ re neries. Sustainable Sustainable Management Management Corporate Governance Corporate Governance Code of Conduct Code of Conduct 2017 Con ict Minerals Ratio Information Security Information Security Con ict Minerals Investigation Process: 100% Risk Management Risk Management 93.5% Regulatory Compliance Regulatory Compliance Responsible Responsible 80% 79.2% Partnership Partnership Customer Service 60% Sustainable Supply Chain Pegatron_SRM 40% Sustainable Sustainable send the survey mail 33% Environment Environment 25.3% Low Carbon & Energy Low Carbon & Energy 20% Greenhouse Gas Greenhouse Gas Sustainable Design Sustainable Design 0% Environmental Environmental Tier 1 Suppliers Sub suppliers Upstream suppliers Protection Protection Sn Au W Ta Joyful Work Joyful Work Employment Employment Upload Push 2017 investigation of PEGATRON- The ratio of suppliers that claim the materials they Relationship Relationship supplied to us contain con ict minerals (by category of con ict minerals) Attracting & Attracting & Remark: The calculation of the ratio (%) of con ict minerals is shown as belows: [(total Nurturing Talent Nurturing Talent number of suppliers using one mineral among 3TG) / (total number of suppliers using 3TG)] Occupational Occupational Upload the CMRT x100% (Tantalum, Tin, Tungsten and Gold are collectively known as 3TG.) Health & Safety Health & Safety to SRM Rejected Employee Care Employee Care Social Care Social Care Social Welfare Social Welfare Review Community Community In recent years, Pegatron cooperates with customers actively to achieve 100% con ict free Involvement Involvement sourcing goal. In the future, we will be stricter in Con ict Minerals Surveys, and ask suppliers Passed Appendix-Index Appendix-Index to disclose the smelters’ information completely and honestly. Furthermore, we will GRI content index GRI content index continue to advocate the con ict minerals related requirements in the supplier conferences United Nations Global United Nations Global Upload the CMRT Roll up the CMRT reports into to reach our purpose that we do not directly or indirectly bene t the armed con ict groups. Compact Index Compact Index to Pega_SRM one and provide it to customer Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement Navigate Sustainable Environment the The company commits to the implementation of environmental protection Future and mitigation of impacts result in climate change. 26 With the evolution of society, the focus of environmental protection is not limited to the Cooperate with and 1. Evaluate the e ciency of traditional approach of pollution prevention and control. The worldwide resources learn from customers facility / equipment operation Editorial Principles Editorial Principles Energy saving to enhance energy A Word from A Word from shortage caused by rapid industrialization, the vast consumption of resources and climate Customer measures and the conservation 2. Benchmark with best practice Medium the CEO the CEO change cannot be ignored nowadays. As a sustainable corporate, PEGATRON responsibly Requirement use of renewable measures and companies renewable energy Identi cation & Identi cation & faces the global issues including climate change, environmental protection and global energy requirements 3. Evaluate, establish or purchase researches and renewable energy Communication Communication warming. We issue several procedures and obey them to minimize the use of resources, development Social Responsibility perform greenhouse gas inventory checking and energy conservation management in Commitment Import new order to reduce the consumption of resources and greenhouse gas emissions. To achieve Plant equipment, sta technologies and 1. Online/ video conference, and Stakeholder Extreme commuting, delivery methods to save so on Communication our commitment, we disclose our concepts for environmental protection and climate of raw materials and traveling and Low shipping a ected 2. Evaluation and establishment Material Issue greenhouse gas reduction in our PureCSR policy. transportation of emergency response plan Identi cation costs. Sustainability As mentioned in our PureCSR policy, we value natural resources preservation, Development Goals environmental protection and pollution prevention, so as to eliminate any impact on the Company Pro le Company Pro le environment. We also announce our greenhouse gas inventory and veri cation project in About PEGATRON the PureCSR principles, in response to carbon reduction requests from our stakeholders. 1. Greenhouse gas inventory platform: Financial Performance An international environmental management system, ISO 14001, is also in place and Globalization Pegatron is certi ed by third parties periodically. In order to understand and master the operation of greenhouse gas emissions, the Arrangement establishment of greenhouse gas inventory platform is carried out for the purpose of Award List collection, calculation and storage of the relevant information or documents. Sustainable Sustainable Management Management Corporate Governance Corporate Governance 2. Energy use monitoring system: Code of Conduct Code of Conduct Low Carbon & Energy We can nd the opportunity for the improvement on energy saving and know more Information Security Information Security about the operation status and the energy e ciency of major facilities through collecting Risk Management Risk Management We established long term carbon reduction goal to show the and analyzing the data from electric meters and other relevant sensors. Regulatory Compliance Regulatory Compliance Responsible Responsible determination on promotion of energy saving and carbon reduction. Partnership Partnership 3. Energy saving measures: Customer Service PEGATRON provides solutions to global warming through eco-friendly design and clean Through the application of equipment or technology, recycling and management to Sustainable manufacturing. We make great e orts on carbon reduction in product manufacturing, achieve the Group's goal of energy saving and carbon reduction. Supply Chain delivery and disposal, and implement energy saving actions in daily operations. In Sustainable Sustainable addition to the direct disclosure of treasuring the natural resources in our PureCSR policy, Environment Environment we have established a long-term energy conservation and carbon reduction goal to show Low Carbon & Energy Reduction Reduction CO2 Reduction our determination to achieve carbon reduction. Category Projects Greenhouse Gas (kWh) (Megajoule; MJ) (tone) Sustainable Design Our targets are reductions of 21 percent on greenhouse gas emissions, and 24 1. Air conditioning Environmental percent electricity consumption by 2020; from the level of 2009 per revenue dollar. system- Energy Protection saving design for Joyful Work Joyful Work For the increasingly serious problem of climate change, we analyze the risks that may be both sides; Employment Employment encountered and gure out how to avoid them as follows: cleaning and Relationship Relationship prevention of Attracting & Attracting & bio lm; cool Nurturing Talent Nurturing Talent down by cooling Occupational Occupational Application tower in winter Health & Safety Health & Safety Response Risk after of new season. Risk Opportunity Responded Practice Response Refrigeration by Employee Care Employee Care Object equipment Social Care Social Care using cooling 20,672,601 74,421,363 16,843 Local governments The de nition of 1. Establish greenhouse gas /technology tower in winter Social Welfare Social Welfare are increasingly laws and inventory platform to collect ; Recycling season. Community Community Regulatory paying attention to regulations can be and monitor emissions and reuse e ectively Low Involvement Involvement Requirement the reduction in 2. Set the Group's energy saving 2. Replacement to greenhouse gas and established in zero-loss Appendix-Index Appendix-Index energy use response to and carbon reduction targets GRI content index GRI content index practice post-processors and use heat United Nations Global United Nations Global The development Compact Index Compact Index of energy e ciency 1. Update or replace ine cient recovery Carbon Carbon trading and equipment Sustainability Sustainability methods and 3. Vacuum system- trading / energy tax increase technologies will Low Development Goals Development Goals energy tax in operating costs 2. Establish a monitoring Introduce vacuum of the United Nations of the United Nations help to reduce mecha nism for energy use product unit costs equipment to Statement Statement replace vacuum
generators 4. Lighting system- LED lighting 1. Air conditioning system- Energy saving design for both sides; cleaning and prevention of bio lm; cool down by cooling tower in winter season. Refrigeration by using cooling tower in winter season. 2. Replacement to zero-loss post-processors and use heat recovery 3. Vacuum system- Introduce vacuum equipment to replace vacuum
27 generators Analysis of electricity use in PEGATRON (2015-2017): Editorial Principles Editorial Principles 4. Lighting system- A Word from A Word from LED lighting Electricity usage (GJ) Electricity usage per million TWD in revenue (GJ/million TWD) the CEO the CEO Identi cation & Identi cation & 3,000,000 3.00 Communication Communication Manage- Lighting and air 2,634,948 Social Responsibility ment conditioning 435,028 1,566,100 345 2.48 Commitment method operation plan 2,500,000 2.50 2,233,756 Stakeholder 2,045,582 Communication 2,000,000 2.00 Remark: The amount of carbon reduction was calculated based on the electricity emission factor of each site 2.21 Material Issue Identi cation in 2016. 1.93 1,500,000 1,333,495 1.69 1.50 Sustainability Development Goals 1,000,000 1.00 Company Pro le Company Pro le 4. Evaluate the e ciency of the facilities or equipment: About PEGATRON Cooperate with external parties to evaluate the e ciency of the facilities or equipment 500,000 0.50 Financial Performance and use them as baselines for energy e ciency improvements. Globalization Arrangement 0 0.00 Award List 5. Learning from leading companies: 2009 2015 2016 2017 Sustainable Sustainable Management Management In addition to arranging the non-scheduled meetings for the professionals on energy Corporate Governance Corporate Governance within PEGATRON Group, sta s in the factories were also invited to join the events to visit Code of Conduct Code of Conduct leading companies and learn from them. Through these activities, we can learn more and Information Security Information Security nd the best practices for the improvements of energy e ciency in the factories. Greenhouse Gas Risk Management Risk Management Regulatory Compliance Regulatory Compliance Responsible Responsible 6. Application of renewable energy: Keep Adapting and Try to Eliminate the Impacts on Partnership Partnership A solar power system was installed on the top oor of a facility to reduce the use of Business Continuity. Customer Service purchased energy. Sustainable In addition to the direct disclosure of treasuring the natural resources in our PureCSR Supply Chain policy, our commitment to long-term energy conservation and carbon reduction was Sustainable Sustainable Environment Environment disclosed by our chairman, TH Tung. We expect that we can contribute to global Low Carbon & Energy greenhouse gas reduction through our e orts. Reduction Reduction CO2 Reduction Greenhouse Gas Category Projects (kWh) (Megajoule; MJ) (tone) Sustainable Design PEGATRON is committed to develop eco-friendly design since its inception. In response to Environmental Renewable Solar Power the impacts of global climate change, we not only continue to improve the energy Protection energy System 1,228,770 4,423,572 993 e ciency of products, but also develop the easy dismantling, easy recovery and energy Joyful Work Joyful Work saving design for the speci c products according to customer requirements. Meanwhile, Employment Employment we establish the internal environmental technology standards for manufacturing of green Relationship Relationship Purchased electricity is the main source of greenhouse gas emissions in the PEGATRON products, and transform the risks of climate change into business opportunities for Attracting & Attracting & Group, we not only produce products with lower energy consumption, but also competition. Besides, we strive to reach the greenhouse gas reduction target at design Nurturing Talent Nurturing Talent implement several energy saving actions in our daily operations (such as power usage and manufacturing stages, through strengthening energy conservation and enhancing Occupational Occupational Health & Safety Health & Safety management, illumination and air-conditioning management) to enhance the e ciency the e ciency of operations, with the optimal evaluation of energy consumption and cost. Employee Care Employee Care of electricity use at non-manufacturing area. Social Care Social Care In order to implement the greenhouse gas management of PEGATRON Group, our Social Welfare Social Welfare headquarters and main manufacturing centers set up the “greenhouse gas inventory Community Community committee” to execute the inventory management plan and identify signi cant emission Involvement Involvement sources as well as draft the reduction target and plan. For reducing the impacts from Appendix-Index Appendix-Index business, production, activities and services, through the way we take our responsibility GRI content index GRI content index for environment protection. United Nations Global United Nations Global Compact Index Compact Index PEGATRON conducts “Greenhouse Gas Inventory Checking” according to the Greenhouse Sustainability Sustainability Development Goals Development Goals Gas Protocol and our internal procedure “Management Procedure for Greenhouse Gases of the United Nations of the United Nations (GHG) Emissions Inventory “. We also obey ISO 14064-1 standard to disclose and verify Statement Statement GHG emissions. The company's greenhouse gas emission inventory covers direct
emissions (scope 1) and indirect emissions from purchased electricity (scope 2). The inventory results are veri ed by a third party and the veri cation statements are publicly disclosed on the company’s website. The external veri cation of 2017 greenhouse gas emissions was conducted in June, 2018. The total quantity of greenhouse gas emissions in 2017 was 653,879 tones, and the proportion of the six greenhouse gas emissions from operation shows in the following table. The main source of emissions in 2017 was electricity usage and its ratio was 89.94%. Keep Adapting and Try to Eliminate the Impacts on Business Continuity.
In addition to the direct disclosure of treasuring the natural resources in our PureCSR policy, our commitment to long-term energy conservation and carbon reduction was disclosed by our chairman, TH Tung. We expect that we can contribute to global greenhouse gas reduction through our e orts.
PEGATRON is committed to develop eco-friendly design since its inception. In response to the impacts of global climate change, we not only continue to improve the energy e ciency of products, but also develop the easy dismantling, easy recovery and energy saving design for the speci c products according to customer requirements. Meanwhile, we establish the internal environmental technology standards for manufacturing of green products, and transform the risks of climate change into business opportunities for competition. Besides, we strive to reach the greenhouse gas reduction target at design and manufacturing stages, through strengthening energy conservation and enhancing the e ciency of operations, with the optimal evaluation of energy consumption and cost.
In order to implement the greenhouse gas management of PEGATRON Group, our headquarters and main manufacturing centers set up the “greenhouse gas inventory committee” to execute the inventory management plan and identify signi cant emission sources as well as draft the reduction target and plan. For reducing the impacts from business, production, activities and services, through the way we take our responsibility for environment protection.
PEGATRON conducts “Greenhouse Gas Inventory Checking” according to the Greenhouse Gas Protocol and our internal procedure “Management Procedure for Greenhouse Gases (GHG) Emissions Inventory “. We also obey ISO 14064-1 standard to disclose and verify GHG emissions. The company's greenhouse gas emission inventory covers direct
28 emissions (scope 1) and indirect emissions from purchased electricity (scope 2). The inventory results are veri ed by a third party and the veri cation statements are publicly Editorial Principles Editorial Principles PEGATRON has actively participated in the CDP (Carbon A Word from A Word from disclosed on the company’s website. The external veri cation of 2017 greenhouse gas the CEO the CEO emissions was conducted in June, 2018. The total quantity of greenhouse gas emissions in Disclosure Project) since 2009, responding to its greenhouse Identi cation & Identi cation & 2017 was 653,879 tones, and the proportion of the six greenhouse gas emissions from gas emissions, climate related investment risks and Communication Communication operation shows in the following table. The main source of emissions in 2017 was opportunities through the questionnaire. We were awarded a performance Social Responsibility electricity usage and its ratio was 89.94%. band of C by the CDP in 2017, and will continue to join international projects and Commitment initiatives in the future to show our attention and e orts on the relevant issues. Stakeholder Communication Material Issue Response Year Score Identi cation Pie chart of the six main greenhouse gases: Sustainability Climate Change 2017 Performance Band-C Development Goals Company Pro le Company Pro le CH4 tons CO2e 2.81% Climate Change 2016 Performance Band-C About PEGATRON N2O tons CO2e 0.02% (No disclosure Score since 2016) Financial Performance HFCs tons CO2e 1.21% Climate Change 2015 Performance Band-D ; Disclosure Score -94 Globalization PFCs tons CO2e 0.00% Arrangement Award List SF6 tons CO2e 0.00% Sustainable Sustainable CO2 tons CO2e 95.96% Management Management Corporate Governance Corporate Governance Code of Conduct Code of Conduct Sustainable Design Information Security Information Security Risk Management Risk Management Regulatory Compliance Regulatory Compliance The proportion of GHG emission and reduction of PEGATRON We care the society, treasure the environment and make every- Responsible Responsible in past three years: thing simpler by designing. Partnership Partnership Customer Service 2015 2016 2017 As a professional DMS, PEGATRON designs innovative and high-end technology electron- Sustainable ic products, with the concept of economic, society and ecology sustainability. We focus Supply Chain Scope 1 (tons) Sustainable Sustainable 42,951.554 45,621.27 43,688.79 on the enhancement of product energy e ciency to respond to the issues of global Environment Environment Scope 2 (tons) 469,470.93 498,651.65 610,190.29 warming and limited natural resources, as well as to improve energy e ciency of prod- Low Carbon & Energy ucts. In order to reduce the impacts on the environment and lower or eliminate the nega- Greenhouse Gas Total Emission(tons) 512,422.49 544,272.94 653,879.08 tive e ects on health and safety in designing and manufacturing stages, we control the Sustainable Design usage of hazardous chemicals and use recyclable materials according to international Environmental environmental protection regulations and customer requirements. Protection Greenhouse gas emissions in PEGATRON (2015-2017) : Joyful Work Joyful Work “PEGATRON continually pursues improved product quality through innovation, e cient Employment Employment GHG Emissions (metric tons CO2e) GHG Emissions per million TWD in revenue (metric tons CO2e/million TWD) manufacturing, eco-friendly design, on-time delivery, reliable service, lean process and Relationship Relationship comprehensive training to earn customer satisfaction and exceed customer expectations” Attracting & Attracting & Nurturing Talent Nurturing Talent 700000 is our Green Management System (PureGMS) policy. Our product quality management 0.65 0.7 Occupational Occupational 653,879.08 activities are based on ISO 9001 Quality Management System. Our QC 080000 manage- Health & Safety Health & Safety 600,000 556,759.49 0.6 ment system is developed to ensure all our products under control to avoid hazardous Employee Care Employee Care 513,451.24 500,000 substances used or product contained from the stage of customers’ requests to the stage Social Care Social Care 0.55 0.5 of products delivery. Meanwhile, we establish GP management system and get certi ca- Social Welfare Social Welfare 400,000 tions of TL9000 and ISO/TS 16949 to meet speci c customer requirements. 347,357.57 0.42 0.48 Community Community 0.4 Involvement Involvement 300,000 PEGATRON tracks and summaries all international environmental regulations including Appendix-Index Appendix-Index 0.3 200,000 hazardous substances, green marks, environmental labels and other information. Relevant GRI content index GRI content index 0.2 units report the regulatory compliance and response measures on the regularly Steering United Nations Global United Nations Global 100,000 Compact Index Compact Index Committee (SC) meetings. 0.1 The latest environmental regulations are also communicated internally through the moni- Sustainability Sustainability 0 Development Goals Development Goals 2009 2015 2016 0 toring platform for regulations. PEGATRON had no case of noncompliance led to nes of the United Nations of the United Nations 2017 with regulations concerning about the health and safety impacts or information labeling Statement Statement by products and services in 2017. Remark: The base year is 2009. 29 To meet the international environment regulations and customer requirements, Editorial Principles Editorial Principles GP PEGATRON has issued PureGMS HSF Technical Standard and PureGMS Low Halogen and A Word from A Word from TL9000 Speci c Product Quality Management System/ Halogen-Free Technical Standard. We tailor customers’ green product speci cations upon the CEO the CEO ISO 13485 Speci c Customers’Green Product Management System requests, and ask suppliers on component approval process. All components need to Identi cation & Identi cation & ISO/TS 16949 follow Pegatron’s requirements of environmental product speci cations in order to Communication Communication reduce the hazardous substance used in products in design stage of life cycle e ectively. Social Responsibility Commitment QC080000 Hazardous Substance Process Management System 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 ISO9001 Quality Management System Identi cation To assess the safety and health impacts of product life cycles for employees and users, we Sustainability conduct regular internal and external audits of QC 080000 hazardous substance free Development Goals management system every year to ensure the implementation and progress towards Company Pro le Company Pro le continuous improvement. About PEGATRON Hazardous Substance Management Financial Performance █ Globalization PEGATRON has professional experience in integration of design with production and Arrangement service. In addition to green supply chain reinforcement, we also provide customers Award List with creative energy saving, hazardous substance free (HSF) product design concept to eGreen Sustainable Sustainable Hazardous System IQC Management Management facilitate the introduction of green products. We meet and implement customers’ green Substances Corporate Governance Corporate Governance requirements as well as legal requirements at the stage of designing and material QC080000 PureGMS HSF PureGMS HF/LH choosing. The banned substances include serious environment impact substances Hazardous Code of Conduct Code of Conduct HSF HSF PQC Supplier Technical Technical part Substance Process Information Security Information Security which are restricted to be used according to EU RoHS or REACH. In addition, further Standard Standard Management Risk Management Risk Management control of more than 50 chemical substances on ozone depletion substances and System International radioactive materials has been implemented. The restrictions of hazardous substances Customer Regulatory Compliance Regulatory Compliance Green Product OQC Responsible Responsible contained in batteries and packing materials also have been introduced into PEGATRON Regulations Standard Partnership Partnership HSF management system in accordance with legislation and customer requirements. Customer Service To align with customers’ green product requirements, we parse customers’ Sustainable requirements and current international green product regulations, and integrate them Supply Chain into our HSF management system gradually to practice corporate social responsibility Sustainable Sustainable Pegatron considers the trend of global environmental regulations is stricter for the Environment Environment on green products. hazardous substances management. Therefore, to improve human health and safety and Low Carbon & Energy reduce the impacts on environment, Pegatron not only sets up the hazardous substance Greenhouse Gas reduction program within all components yearly, but also monitors global environmental Sustainable Design regulations periodically in order to comply with the international environmental Environmental PEGATRON’s Restriction Scope of Hazardous Substances regulations in time. In addition, through bi-weekly internal PureGMS Steering Committee Protection Meetings, the status of important green product regulations can be reviewed and e ective Joyful Work Joyful Work actions will be given based on the instructions by the relevant functional leaders in the Employment Employment Relationship Relationship RoHs committee. Besides, in order to enhance the competency of all employees on HSF
Attracting & Attracting & Pb/Cd/Hg/Cr6+/P management system, new employees need to complete HSF basic, intermediate or Nurturing Talent Nurturing Talent BBs/PBDEs/DEHP/ advanced training courses based on di erent levels of works (see Table 1). The material of Occupational Occupational International BBP/DBP/DIBP HSF refresh training course is reviewed every year in accordance with the international Health & Safety Health & Safety requirements REACH green product regulations and standards which updated in the past year. All employees Employee Care Employee Care J-Moss California Proposition65 Annex XVII shall adopt the refresh training courses in the current year based on their job functions. Social Care Social Care China RoHS Annex XIV Customer PPWD(94/62/EC) HF/LH Requirements The target of the completion rate of HSF related training courses is achieved every year Social Welfare Social Welfare 2006/66EC Br (Bromine) (see Figure 2). It helps us to understand the changes of new international regulations on Community Community Pegatron Involvement Involvement Cl (Chlorine) Other customers’ green products and implement HSF management system e ectively. Generally speaking, substance speci cations Appendix-Index Appendix-Index requirements PEGATRON always catches the trend of international regulations in time and co-works with GRI content index GRI content index customers to identify their environmental requirements so as to ensure our compliance. PAHs United Nations Global United Nations Global Ozone Compact Index Compact Index Radioactive DMF Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 30 HSF course classi cation:
Editorial Principles Editorial Principles HSF course trainee Course Type HSF course trainee Outline A Word from A Word from the CEO the CEO 1. Introduction of Internationally environmental Identi cation & Identi cation & regulations Communication Communication Basic course All employees (New & refresh training) Social Responsibility (1)Mandatory/ Hazardous Substance compliance Commitment (2)Mandatory/ Energy compliance Stakeholder 2. Introduction of PureGMS Communication Material Issue 1. The ag coding standard of green parts Identi cation All employees operating or managing with HSF materials Intermediate course e-learning 2. Introduction of SPT-00001 PureGMS HSF Sustainability (New & refresh training) Development Goals Technical Standard Company Pro le Company Pro le About PEGATRON Advanced course Related employees executing HSF material approval 1. Introduction of HSF Parts Approval Financial Performance 2. Introduction of e-Green Platform Globalization (New & refresh training) Arrangement Award List Sustainable Sustainable Management Management Corporate Governance Corporate Governance HSF Training: electrical and electronic equipment, but also strengthens the recycling responsibility of Code of Conduct Code of Conduct Target Completion Rate manufacturers to ensure that the overall activities of computer manufacturers have Information Security Information Security environmental awareness. Based on customer requirements, PEGATRON posts the Risk Management Risk Management 100% recycling labels and energy labels in the bodies of the products or packaging, so as to Regulatory Compliance Regulatory Compliance promote the idea of energy conservation and resource recycling to consumers. We will Responsible Responsible 80% continue to follow the progress of international environmental regulations and provide Partnership Partnership the corresponding measures according to customer requirements to ensure we provide 60% Customer Service high quality products and enhance products’ environmental value. Sustainable Supply Chain 40% Sustainable Sustainable Environment Environment 20% Low Carbon & Energy Environmental Labeling in each county: Greenhouse Gas 0% Sustainable Design Basic course Intermediate Advanced Re-training Re-training Environmental course course course A course B Protection Remark All HSF courses counted until the end of year 2017, the completion rates up to 99% or more. Joyful Work Joyful Work 【 ： 】 Employment Employment Relationship Relationship Attracting & Attracting & Nurturing Talent Nurturing Talent Environmental Labelling Occupational Occupational █ CE Mark Directive on Waste Electrical Directive on Batteries and Energy E ciency Label Health & Safety Health & Safety and Electronic Equipment Accumulators and Waste All products designed and manufactured by PEGATRON are complied with customer Employee Care Employee Care (WEEE) Batteries and Accumulators Social Care Social Care requirements, international regulations and related regulations in sales territories and been veri ed accordingly. The environmental information is marked on the product Social Welfare Social Welfare based on the demand. Except for hazardous substances free requirements of electronic Community Community Involvement Involvement products in the design phase, electronic products also need to have ErP compliance Appendix-Index Appendix-Index assessments before entering European market, so as to ensure that the products meet the GRI content index GRI content index requirements of ErP and their enforcement measures, and CE Marks are posted on the United Nations Global United Nations Global products to show their compliance with EU health, safety and environmental regulations. Compact Index Compact Index New Zealand / Japanese RoHS (J-moss) China RoHS Taiwan BSMI Label Australia Minimum Sustainability Sustainability Energy Performance Development Goals Development Goals Moreover, EU not only sets the targets for collection, recycling and recovery of waste of the United Nations of the United Nations Requirements Statement Statement 31 One focus of our research and development of electronic products is to save energy. From the beginning of product development, we consider the energy related requirements of di erent nations in the design phase. In order to enhance power consumption e ciency, Editorial Principles Editorial Principles we not only meet current requirements of energy use, but also anticipate customers’ A Word from A Word from the CEO the CEO needs and set targets according to the of latest version of Energy Star. Identi cation & Identi cation & Communication Communication In October 2011, to ensure electronic products manufactured by PEGATRON could meet Social Responsibility Commitment the requirements, we built the energy consumption laboratory in our headquarters in Stakeholder compliance with the SMTL (Supervised Manufacturers Testing Laboratory) program, and Communication certi ed by UL (Underwriters Laboratories Inc.), which was accredited by the US EPA, as Material Issue well as recognized by TUV SMTL in 2014. 2. Patent design: Adjustable Foam Bu er Sheet can reduce the use of foam materials Identi cation around 40-60%, as well as reduce the weight and volume in the same proportion. Sustainability Development Goals Company Pro le Company Pro le Sustainable packaging About PEGATRON █ Financial Performance We include resource conservation, reusability and recyclability in our packing Globalization design assessments. Meanwhile, we also consider minimizing the environmental Arrangement impacts of packing materials and manufacturing processes as well as the nal Award List disposal of no longer needed packing materials during package design. Reduction 40% Sustainable Sustainable Management Management Corporate Governance Corporate Governance Eco Friendly Considerations: We take green concept into account when Code of Conduct Code of Conduct designing the package and using the raw packing materials. Information Security Information Security 1. Use renewable raw materials. Risk Management Risk Management 2. Use bottom separators to substitute polyurethane (PU) foam materials. Regulatory Compliance Regulatory Compliance 3. Prohibit the use of polyvinyl chloride (PVC). Responsible Responsible Partnership Partnership 4. Strive to only use single color packing materials to facilitate material recycling. Product Safety Regulation Customer Service 5. Comprehensive limitation for the concentrations of lead (Pb), cadmium (Cd), █ Sustainable mercury (Hg), hexavalent chromium (Cr6+ ) to comply with EU Packing and To ensure the lives and property safety of users, many countries have set safety and Supply Chain Packing Waste Directive. electromagnetic compatibility speci cations and testing standards for a variety of Sustainable Sustainable products. To protect the rights of customers and end users, PEGATRON establishes an Environment Environment The packing design is optimized to reduce the use of materials. internal veri cation process according to the national standards and regulatory Low Carbon & Energy requirements. Through the standardized process, our RD conducts overall assessments Greenhouse Gas 1. Packaging Paper Reduction: Lighten the weight of packaging paper to reduce around 40% of material use. and testing for products accordingly. In addition, we also follow related safety and EMC Sustainable Design speci cations and requirements at the manufacturing stage. PEGATRON had no violation Environmental 2. Design for Cost: The packing design in the project is to lower the use of Protection materials in 2017. case or penalty by government due to product safety related issues in 2017. Joyful Work Joyful Work 3. Adjustment of the design: “ㄇ” shape cover design is changed to one sheet to Employment Employment reduce the process and prevent the pollution in manufacturing. International regulations regarding product safety are reviewed in the annual Relationship Relationship 4. Change the design of shipment: Change the stacking array and extend the management review meetings. If there is any update, we will instantly notify relevant Attracting & Attracting & space for shipment. This change can reduce the emissions from transportation personnel to ensure the regulatory compliance. We provide regular training for relevant Nurturing Talent Nurturing Talent and decrease the use of materials. personnel, including safe operating standard introduction, safety inspection introduction, Occupational Occupational plastic material selection guidelines, materials and parts safety requirements to ensure Health & Safety Health & Safety that our employees have the necessary skills when operating the product safety activities. Employee Care Employee Care Social Care Social Care To protect the health and safety of users’ lives and properties, and safeguard the interests Social Welfare Social Welfare Case Study of them, PEGATRON performs internal safety audits to verify the e ectiveness of the Community Community █ Involvement Involvement quality system. According to the internal regulations, we also develop the abnormal Appendix-Index Appendix-Index handling process of product safety. When the product safety performance is against the GRI content index GRI content index 1. Patent design: The design of Pizza Box is to change the structure and reduce the use of requirements while procurement, manufacturing or inspection, the identi cation, United Nations Global United Nations Global paper. The patent can reduce around 8.3% of paper volume compared with the original isolation and disposal of it shall be taken immediately and the relevant units shall be Compact Index Compact Index design and consolidate the strength of the box. informed to retest the repaired or reworked products. Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 32 materials. In addition to source reduction, we pay attention to recycling packing materials Environmental Protection to improve the re-utilization rate. Furthermore, we have set waste management unit in each site to make an overall plan for daily operations and waste statistics, and help other Editorial Principles Editorial Principles units to implement waste reduction and recycling. A Word from A Word from The earth gives us everything we need. the CEO the CEO Identi cation & Identi cation & Now, it’s time to protect her. Communication Communication Social Responsibility Sustainable environment is a long-term goal of the PEGATRON Group. For products, we Waste Generation in PEGATRON from 2015 to 2017: Commitment merged green and environmental friendly concepts into our product design. For daily Waste generation (metric tons) Stakeholder operations, we comply with international and local regulations to reduce the impacts on Communication the environment. This philosophy is disclosed in our PureCSR policy and implemented in Waste generation per million TWD in revenue (metric tons /million TWD) Material Issue Identi cation our daily environmental management. Beyond this, we take the natural ecosystems into 0.08 90,000 Sustainability consideration when building the landscape of each site. 0.07 0.07 73,938 80,000 Development Goals 84,072 Company Pro le Company Pro le The company sets up the grievance mail box and a special line for external stakeholders to 0.06 0.06 70,000 About PEGATRON provide suggestions or make appeals. We also set up internal communication channels 0.05 Financial Performance 0.05 60,000 for employees to use. Globalization 57,430 50,000 Arrangement 0.04 Award List Each site has dedicated unit to deal with environmental complaints and is responsible for 40,000 0.03 Sustainable Sustainable the implementation of environmental protection, including regular assessments of Management Management 30,000 compliance with local legal regulations, write management procedures and commission 0.03 Corporate Governance Corporate Governance with third parties for testing so as to reduce environmental pollution and the impacts of 20,000 Code of Conduct Code of Conduct the organization’s activities. There was no signi cant violation of environmental laws and 0.01 Information Security Information Security regulations in 2017. (Signi cant violation is de ned as being ned for over 5 million NTD.) 10,000 0.00 Risk Management Risk Management 0 Regulatory Compliance Regulatory Compliance In order to raise the awareness of employees on environmental protection and respond to 2015 2016 2017 Responsible Responsible the concept of World Environment Day, PEGATRON HQ and main operational centers Partnership Partnership launched an event named “Corporate EHS Month” in 2017. During that month, each main Customer Service site was in an atmosphere lled with the ideas of environmental protection, safety and Sustainable Supply Chain health promotion. All employees were invited to join the event and there was a special Recycling waste : 81% Sustainable Sustainable website limited in that month to help our employees to understand the meaning of the 17% Domestic waste : 17% Environment Environment event and the information beyond their routine works. 81% Low Carbon & Energy 2% Hazardous waste : 2% Greenhouse Gas Sustainable Design Environmental Protection Joyful Work Joyful Work Employment Employment Relationship Relationship Generation of hazardous wastes in PEGATRON from 2015 to 2017 Attracting & Attracting & Nurturing Talent Nurturing Talent Hazardous waste generation (metric tons) Occupational Occupational Hazardous waste generation per million TWD in revenue (metric tons /million TWD) Health & Safety Health & Safety Employee Care Employee Care 2,500 0.002 0.0018 0.0018 Social Care Social Care Waste Handling & Disposal 0.0016 Social Welfare Social Welfare █ 2,000 2,100 0.0014 Community Community The challenge of waste handling is one of the major environmental aspects in PEGATRON Involvement Involvement Group. As a professional DMS company, we follow our internal procedures to control 1,500 0.0012 0.0012 Appendix-Index Appendix-Index wastes produced at each stage. Almost all wastes are treated through recycling ways. 0.001 0.0011 1,392 GRI content index GRI content index However, for domestic wastes, since we have screened almost all recyclable waste, the 1,000 0.0008 United Nations Global United Nations Global major handling method for domestic waste is incinerated. We will strive ourselves to 1,341 0.0006 Compact Index Compact Index enhance the proportion of recycling treatment, and set it as one of the corporate targets 500 0.0004 Sustainability Sustainability in the future. Development Goals Development Goals 0.0002 of the United Nations of the United Nations 0 0 Statement Statement The principle of waste management in PEGATRON is to minimize the importation of raw 2015 2016 2017 33 Generation of recycling waste in PEGATRON from 2015 to 2017 To make sure all recyclable hazardous industrial wastes are processed in compliance with Editorial Principles Editorial Principles local regulations and in an e cient manner, each site has to follow our internal procedures A Word from A Word from Recycling waste generation (metric tons) to coordinate waste handling process. We verify each waste disposal vendor’s quali cation the CEO the CEO Recycling waste generation per million TWD in revenue (metric tons /million TWD) in a transparent, fair and impartial manner. Through this process, we are able to select the Identi cation & Identi cation & 90,000 0.066 0.07 lowest risky companies to prevent any environmental impact from improper disposal of Communication Communication wastes. All hazardous industrial wastes are handled in compliance with local regulations. Social Responsibility 80,000 0.06 Commitment 70,000 76,472 0.050 0.05 Stakeholder 60,000 Communication 0.040 50,000 59,744 0.04 Material Issue 48,779 Water Resource Identi cation 40,000 0.03 █ Sustainability 30,000 Development Goals 0.02 Water resource is not a signi cant environmental aspect for PEGATRON Group. However Company Pro le Company Pro le 20,000 water shortage caused by climate change and the large variation of rainfall distribution is 0.01 About PEGATRON 10,000 a global issue. Our principle for water resource management adopts two measures. First, Financial Performance 0 0 we devote ourselves to reduce the use of water and improve internally on how we Globalization 2015 2016 2017 handling wastewater. Secondly, we pay attention to promote water saving concept into Arrangement our supply chain. PEGATRON engages in enhancement of the e ciency of water resource Award List usage and reduction of environmental impacts caused by industrial development, to Sustainable Sustainable Generation of domestic waste in PEGATRON from 2015 to 2017 meet the international environmental protection trends. We initiate green value and Management Management implemented corporate social responsibility through actions for sustainable cycle and the Corporate Governance Corporate Governance Domestic waste generation (metric tons) concept of coexistence for economic growth and environmental protection. For reduction Code of Conduct Code of Conduct Domestic waste generation per million TWD in revenue (metric tons /million TWD) from source, we focus on the improvements of facilities and publicizing water resource Information Security Information Security treasuring in each site. Risk Management Risk Management 14,000 0.0120 0.011 Regulatory Compliance Regulatory Compliance 12,000 0.0100 To enhance the e ciency of water use, we adopt prevention and control techniques of Responsible Responsible 10,000 12,803 water resources. The water conservation is part of resource utilization control program in Partnership Partnership 1.0080 2017. Water recycle e ciency is our target. We periodically review water conservation perfor- Customer Service 8,000 0.006 0.0060 mance for continuous improvement. Currently, the main source of water for each site is Sustainable 0.005 6,000 tap water. We actively promote water conservation activities, and each site has developed Supply Chain 7,310 0.0040 Sustainable Sustainable 4,000 and implemented control measures for water conservation. Water resource management Environment Environment 5,500 2,000 0.0020 and water pollution prevention should start from water saving. All sites of PEGATRON have Low Carbon & Energy set up and implemented several control procedures for water saving and explore possible 0 0.0000 Greenhouse Gas ways of water recycling in each kind of water using facilities. Sustainable Design 2015 2016 2017 Environmental Protection Joyful Work Joyful Work Hazardous and Non-hazardous waste generation analysis in each site: Water Resource Saving Measures : Employment Employment Relationship Relationship Total weight of hazardous waste Total weight of non-hazardous waste Attracting & Attracting & O ce Factory Nurturing Talent Nurturing Talent Occupational Occupational Taiwan China Mexico Czech Taiwan China Mexico Czech Health & Safety Health & Safety 1. Publish posts and slogans to announce the 1. Introduce the condensed water recycling importance of water conservation. system for chillers and enhance the Employee Care Employee Care Reuse 0 0 0 0 0 55 0 0 e ciency of water curtain pumps. Social Care Social Care 2. Water saving training programs for Recycling 47 592 0 0 423 55,747 70 661 employees through activities. 2. Optimal design of water consumption in Social Welfare Social Welfare chillers. Community Community Recovery 0 0 0 0 0 2,788 0 0 3. Install water saving devices in faucets to Involvement Involvement reduce the amount of water use. 3. Individual water meter for each water use Composting 0 0 0 0 0 0 26 0 Appendix-Index Appendix-Index 4. Choose water and energy saving devices. device. Incineration 0 660 0 0 241 11,906 0 0 GRI content index GRI content index 5. Use induction faucets and induction 4. Water run-o warning devices for water United Nations Global United Nations Global Land ll 0 0 0 0 0 537 7 86 ushing devices for urinal bowls. pools and water tanks to prevent irregular Compact Index Compact Index water drainage for a long time. On-site storage 0 91 0 0 0 0 0 0 6. Paste labels in water use devices for Sustainability Sustainability 5. Arrangement of irrigation process. Development Goals Development Goals Other 0 0 0 0 0 0 0 0 information of repair. of the United Nations of the United Nations Statement Statement Remark: Non-hazardous waste includes the recycling waste and domestic waste. 【 】 34 Water usage in PEGATRON from 2015 to 2017 We have a dedicated wastewater analysis laboratory to monitor the quality of wastewater at East China Operation Center. The instruments for checking water quality are calibrated Editorial Principles Editorial Principles Water usage (cubic meters) A Word from A Word from periodically to make ensure the accuracy of monitoring. We improved the wastewater the CEO the CEO Water usage per million TWD in revenue (cubic meters/million TWD) treatment system to ensure water quality by: Identi cation & Identi cation & 9,000,000 Communication Communication 6.92 8.00 1. Improve the facilities to enhance the treatment e ciency of oils. Conduct the 8,000,000 daily inspection and maintenance of sewage handling facilities to ensure the Social Responsibility 5.89 8,256,137 7.00 Commitment 7,000,000 5.46 quality of wastewater. 6.00 Stakeholder 6,000,000 6,824,538 2. For the project of treatment of canteen wastewater with oils, we regulate the speci cation Communication 6,621,534 5.00 5,000,000 of grease interceptor, and perform the daily cleaning and maintenance to ensure the Material Issue 4.00 Identi cation 4,000,000 quality of wastewater. 3.00 Sustainability 3,000,000 Development Goals 2.00 Company Pro le Company Pro le 2,000,000 About PEGATRON 1,000,000 1.00 Green Transportation Financial Performance 0 0.00 █ Globalization 2015 2016 2017 In order to save energy and increase the e ciency of tra c / transport use, we continue to Arrangement promote green transportation and business communications. Award List Sustainable Sustainable Management Management Total Amount of Water Withdrawal in 2017 by Location 1. We lower the weight of products and packing materials to reduce the fuel Corporate Governance Corporate Governance consumption of transportation. When we select suppliers, the locations of the suppliers are also taken into account to improve the transportation e ciency. Code of Conduct Code of Conduct Information Security Information Security 2. To meet our policy of environmental protection and carbon reduction, Site Taiwan China Mexico Czech marine transportation is considered rst so as to reduce carbon emissions. Risk Management Risk Management Transportation For transportation by air, direct ights are preferred to reduce the tra c time Regulatory Compliance Regulatory Compliance Total Amount of of Goods and distance. 210,833 8,029,349 3,766 12,189 Responsible Responsible Water Usage (ton) Partnership Partnership 3. Centralized transportation is our policy to reduce the times of transportation. Customer Service 4. For overseas transportation, we cooperate with the shipping companies which are willing to reduce the vessel speeds. For ground transportation, transportation Sustainable by trucks will be replaced by railway system which is more environmental friendly. Supply Chain The major wastewater of PEGATRON in each site is domestic wastewater. In order to Sustainable Sustainable ensure the water quality meet the related wastewater protection regulations, we Environment Environment issued the “Water Control Management Procedure“ to ensure the wastewater quality Employee Daily commuting: In Taiwan, more than half of employees commuting by public transportation to the factories and corporate headquarters. Our company also Low Carbon & Energy complies with local regulatory requirements. The periodic monitoring of wastewater Transportation provides shuttle bus between di erent working places. Greenhouse Gas quality continues to be conducted by the 3rd parties. The monitoring subjects are Sustainable Design identi ed by professionals according to local legal requirements. All monitoring Business Using video / voice / live communications to replace face to face meetings is our Environmental results in 2017 were complied with the standards and the wastewater was Exchange actively promoting strategy. Protection discharged to the sanitary sewer systems. Joyful Work Joyful Work Employment Employment Relationship Relationship Attracting & Attracting & Wastewater generation in PEGATRON from 2015 to 2017 Nurturing Talent Nurturing Talent Wastewater generation (cubic meters) Occupational Occupational Wastewater generation per million TWD in revenue (cubic meters /million TWD) Health & Safety Health & Safety 7,000,000 6.00 Employee Care Employee Care 5.04 5.47 Social Care Social Care 6,000,000 6,531,831 5.00 Social Welfare Social Welfare 4.10 5,837,507 5,000,000 Community Community 4.00 Involvement Involvement 4,970,821 4,000,000 Appendix-Index Appendix-Index 3.00 GRI content index GRI content index 3,000,000 United Nations Global United Nations Global 2.00 Compact Index Compact Index 2,000,000 Sustainability Sustainability 1,000,000 1.00 Development Goals Development Goals of the United Nations of the United Nations 0 0.00 Statement Statement 2015 2016 2017 Navigate Joyful Working the To develop the philosophy of “Priest” and “Parents”, Future and to respect the characteristics of each employee. 36 PEGATRON Group’s philosophy is based on a work-life balance of "Joyful Working, candidate’s gender, religion, race, national origin or political party. When we recruit new Editorial Principles Editorial Principles Happy Living". We encourage our employees to confront work duties with a positive employees, our primary consideration is the candidate’s skills and abilities to do the job. A Word from A Word from attitude and to increase their potential by welcoming challenges, working above and Our recruitment policy is speci ed clearly to assure the fairness of recruitment, the CEO the CEO beyond expectations and by constantly improving themselves, while working within employment, development, performance assessment and rewards for both Identi cation & Identi cation & a team environment. When all team members work together to achieve excellence, applicants and employees. The company provides the same working conditions under an Communication Communication all employees can enjoy a “Happy Life”, which is PEGATRON Group’s ultimate goal. identical management. For the management of internal sta s, the work category Social Responsibility (including operator, assistant engineer/ administrator, senior engineer/ administrator, Commitment deputy section manager/ specialist, section manager, manager, etc.) is corresponding to Stakeholder Communication the required capacity and performance as the basis. There is no unfair treatment because Material Issue of gender, age, region, religion, nationality or political party. Under the spirit of appraisal Identi cation Employment Relationship and promotion system, sta s with the same ability have the same opportunities Sustainability for promotion. Development Goals Company Pro le Company Pro le Respect International Human Rights and Cultivate Local Talents. As a global company, we not only pay attention to the importance of the global market, About PEGATRON but also care about local development. All of our employees who exhibit competence in Financial Performance their position, have the same promotional opportunities. Over 60% of our managers were Globalization To promote the protection of human rights and prevent human rights violations, local people in major operation sites so as to practice the concept of talent localization. Arrangement PEGATRON is in compliance with the labor laws and the internationally recognized basic Furthermore, we proactively employ disabled people and provide adequate job Award List labor rights to protect employees’ lawful rights and interests. Moreover, we also develop opportunities for disadvantaged groups to respond government policy and achieve Sustainable Sustainable the policies and procedures to protect the basic human rights of employees. hiring localization. Management Management Corporate Governance Corporate Governance Code of Conduct Code of Conduct Employee Pro le Information Security Information Security █ Risk Management Risk Management At the end of 2017, PEGATRON employed a total of 156,477 employees included Regulatory Compliance Regulatory Compliance dispatched workers. PEGATRON respects equal rights and anti-discrimination of each Responsible Responsible Partnership Partnership Customer Service Sustainable Supply Chain PEGATRON annual manpower structure in 2017 Sustainable Sustainable Environment Environment Permanent Temporary Low Carbon & Energy Gender Age Greenhouse Gas Total Location Under 30 31-50 Over Full-Time Part-Time Full-Time Part-Time Sustainable Design Male Female Environmental yrs. yrs. 51 yrs Male Female Male Female Male Female Male Female Protection Joyful Work Joyful Work Taiwan 7093 4874 2219 1823 4974 296 4670 1921 0 0 200 295 4 3 Employment Relationship China 148245 106903 41342 120503 27705 37 5687 3322 0 0 101216 38020 0 0 Attracting & Nurturing Talent Mexico 123 84 39 41 71 11 84 39 0 0 0 0 0 0 Occupational Health & Safety Czech 1016 474 542 345 497 174 232 223 0 0 227 282 15 37 Employee Care Social Care Social Care Social Welfare Social Welfare Community Community Involvement Involvement Location Taiwan China Mexico Czech Appendix-Index Appendix-Index GRI content index GRI content index The proportion of management level locally (%) 99.2% 75.9% 63.2% 87.5% United Nations Global United Nations Global Compact Index Compact Index Sustainability Sustainability Notes: Development Goals Development Goals of the United Nations of the United Nations (1) Ratio (%) = total number of management who are local residents / total number of management. (2) The management is the employees who have the management responsibilities. Statement Statement (3) The local people are the employees who were born or lived in local country, but the scope of Czech Republic is extend to European Union (EU). 37 Labor Rights corporal punishment, mental or physical oppression and other kinds of discrimination in Editorial Principles Editorial Principles █ the workplaces. In addition to the clear rules and policies (e.g. Work rules, Prevention, A Word from A Word from In order to clearly de ne the rights and obligations between labor and management, Correction, Complaint and Enforcement of Sexual Harassment for workplace Procedure), the CEO the CEO improve the management system, let sta s work together and seek business development, we also set up an email mailbox and a hotline which employees can use to report sexual Identi cation & Identi cation & PEGATRON regulates the labor rights related requirements based on the Code of Conduct harassment. There is a strictly con dential rule in place to protect the whistleblowers. Communication Communication of Responsible Business Alliance (RBA) and local labor regulations, as well as respects PEGATRON will not retaliate against any employee who claims a complaint. All changing Social Responsibility terms of employment have been duly noti ed according to regulatory requirements and the Commitment human rights and follows the relevant norms of labor rights. Through the operation of information also provided immediately through EIP websites, emails, TVs or bulletins, etc. Stakeholder PureCSR management system, we formulate the program to ensure that employees' rights Communication can be respected. The implementation guidelines related to labor rights include: ： Material Issue Complaints hotline for sexual harassment and workplace violence Identi cation 886-2-8143-9001 EXT 33395 Sustainability Development Goals Prohibition of child labors and Protect young workers Complaints mailbox for sexual harassment and workplace violence： Company Pro le Company Pro le 【 】 [email protected] About PEGATRON The appointment and recruitment processes of PEGATRON are in accordance with local Financial Performance regulations, and the requirements of RBA Code of Conduct. We set the minimum age requirements, develop the identi cation system and control measures to ensure that the Globalization Respect for freedom of association and Protection of labor rights Arrangement employment of child labors is strictly prohibited of each site. We also develop the” Child 【 】 Award List Labor Remediation Procedure" to respond and commit the measures taken when hire a In order to be in compliance with local regulations, we respect the fact that each Sustainable Sustainable child labor carelessly. For young workers under the age of 18, we promise not to let them employee has the rights to participate in unions, collective bargaining and peaceful Management Management responsible for the work which may endanger their health or safety, and provide the assemblies. Simultaneously, we also respect the right of non-participation. Nearly 99% of Corporate Governance Corporate Governance appropriate support and training. employees have been covered by collective negotiation agreements. We not only take Code of Conduct Code of Conduct into account the interests of both sides, but also protect the rights of employees through Information Security Information Security an open and equitable consultative mechanism. If the company has any major Risk Management Risk Management Prohibition of discrimination and Provide fair remuneration operational change may a ect employees, the employees will be informed in advance Regulatory Compliance Regulatory Compliance 【 】 based on labor regulations in Taiwan. The employees and their representatives in Responsible Responsible PEGATRON prohibits any form of harassment and unlawful discrimination. We prohibit overseas sites will also be informed at least four weeks before the change come into Partnership Partnership any discriminate in employment because of race, color, age, gender, sexual orientation, e ect. Besides, there is no union organized in Taiwan, but the labor and management Customer Service ethnicity, gender identity and expression, disability, pregnancy, religion, political meeting is held quarterly to ensure the interests of employees. Rules for labor and Sustainable management meeting are also set and posted on the company's website for colleagues Supply Chain a liation, union membership, veteran status, genetic information and marital status while to review. Most overseas sites have employee’s representative meetings or unions to Sustainable Sustainable employee hiring and working. Meanwhile, we prohibit forcing workers or potential Environment Environment workers to accept discriminatory health checkups or physical examinations. We follow the e ectively promote the relationship between labors and management as well as ensure Low Carbon & Energy principle of pay equity and regularly review the market information to set up the the rights for exercising freedom of association and collective bargaining. West China Greenhouse Gas competitive pay levels, there is no di erence because of gender, race, religion, class and Operation Center has established the employee’s representative meeting and the Sustainable Design so on. In addition, our salary and bene ts are complied with local regulations and industry meeting is held in November each year according to the management procedure. The Environmental standards, the deductions of wages due to disciplinary purposes are prohibited. meeting agenda will be collected by employee representatives before meeting. 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 Conferences Attracting & China Unions or Employees' Representative Meetings Nurturing Talent PEGATRON has a labor contract with employees based on local laws, and the hiring Occupational relationship is established based on mutual consensus in the contract and prohibits to use Mexico Unscheduled Meetings Health & Safety any forced labors. In addition to against illegal human tra cking and slavery, we also have Czech Union Employee Care prohibition of hiring forced or compulsory labors. Control measures for agencies are also Social Care Social Care carried out and compliance with local regulations is included in the contracts signed with Social Welfare Social Welfare them. PEGATRON complies with the requirements of RBA Code of Conduct to have no Community Community unreasonable restriction for labors to move freely in and out of the workplaces. Employees Establishment of working time control mechanism to protect Involvement Involvement have the rights to leave or terminate their employment relationship at their free will. 【 labor rights and interests Appendix-Index Appendix-Index 】 GRI content index GRI content index In accordance with regulations and RBA code of conduct, under the premise of full rest United Nations Global United Nations Global Compact Index Compact Index Prohibition of inhuman treatment and to keep communication time and meal time, overtime application can be made by employees voluntarily. It shall Sustainability Sustainability 【 channel open be applied prior to the overtime and also approved by the managers. All sites have set up Development Goals Development Goals the warning mechanism and automatic noti cation mechanism of overtime to control of the United Nations of the United Nations 】 PEGATRON prohibits any tangible or intangible sexual harassment, violence, abuse, the working hours. In the system, di erent levels of overtime hours are marked by colors Statement Statement
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 departments and the 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
38 based on the management needs. When the overtime hours are exceeding the maximum 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 departments and the factory compensation by the reference of economic indicators and industry wage level every Identi cation & Identi cation & management. The function of working hour inquiry is also included in the system which year. For the employees who are resigned or retired, they can legally have severance pays Communication Communication can assist the responsible personnel of business units to check the working hours, so as to or pensions. We also continue to corporate with the local government projects of Social Responsibility arrange for reasonable overtime. Commitment unemployed training programs to promote their continued employability. Stakeholder Communication Material Issue Ensure that the sta dormitory environment clean and safe Identi cation 【 】 Sustainability Central China Operation Center: We provide employees the community type accommodations, PEGATRON monthly average new employee rate in 2017 (%) 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. Monthly Average Rate of New Employee Hires (%) About PEGATRON East China Operation Center: Free Wi was installed both in internal and external dormitories, Financial Performance Location Gender Age Globalization so as to improve employees’ satisfaction of the dormitory environment. Arrangement Male Female Under 30 yrs. 31-50 yrs. Over 51 yrs 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 Taiwan 0.7% 0.9% 1.8% 0.4% 0.0% Management Management which is responsible for routine cleaning, to ensure employees’ accommodations are clean China 29.9% 25.0% 29.4% 23.9% 0.0% Corporate Governance Corporate Governance and tidy. Mexico 2.4% 2.6% 4.9% 1.4% 3.0% Code of Conduct Code of Conduct Information Security Information Security Czech 5.0% 5.1% 8.0% 3.7% 3.1% Risk Management Risk Management Remark: New employee rate (%) = monthly average number of new employees / Regulatory Compliance Regulatory Compliance (the sum of employees at the end of each month/12) Responsible Responsible Attracting & Nurturing Talent Partnership Partnership Customer Service PEGATRON monthly average turnover rate in 2017 (%) Sustainable Every employee is our valuable assets. Cooperation between employees and the company Supply Chain is the solid basis for our future development. We believe “where there have excellent talents, Sustainable Sustainable the company will become an excellent corporation”. Respect of human nature and Monthly Average Rate of Employee Turnover (%) Environment Environment cultivation of talents are our core values. In addition to the establishment of an innovative Low Carbon & Energy and diverse culture, we also pay attention to employees’ bene ts and health cares to Location Gender Age Greenhouse Gas balance the loads from high performance working and help them to better their daily lives. Sustainable Design Male Female Under 30 yrs. 31-50 yrs. Over 51 yrs Environmental Taiwan 1.0% 1.6% 2.1% 0.9% 0.7% Protection 28.0% 23.3% 27.8% 21.3% 0.3% Joyful Work Joyful Work Retention & Recruitment China Employment █ Mexico 6.0% 2.6% 7.3% 2.8% 9.1% Relationship We provide a safe and comfortable working environment along with extensive training Czech 6.6% 4.7% 10.0% 3.5% 3.1% Attracting & courses and career development. PEGATRON works on employee retention by providing Nurturing Talent career development opportunities, work-life balance and enhancing our leaders’ Remark: Turnover rate (%) = monthly average number of employee leaving / Occupational management abilities. Our actions are the same as our business philosophy of “Happy (the sum of employees at the end of each month/12) Health & Safety Working, Joyful Living”. Employee Care Social Care Social Care We value the contributions of our diverse employees and keep attracting global talents to Internal assessment system covers all employees worldwide, and we announced a clear Social Welfare Social Welfare join us by providing a good working environment and development opportunities. We appraisal rule and assessment process. The work incentives and disincentives are internal Community Community also cooperate with industry-university cooperation and internship programs to recruit disclosed, and we clearly communicate the execution process with all employees. All Involvement Involvement good talents. We provide employment opportunities for local labors and disabilities to employees (with the exception of operators and new employees less than 3 months) have Appendix-Index Appendix-Index attract diverse talents and achieve corporate social responsibility. twice performance assessments per year to give feedbacks to employees’ performance. GRI content index GRI content index Annual employee development plans are set according to assessment results. While United Nations Global United Nations Global PEGATRON provides professional HR training programs including testing tools as well as a assisting employee growth and development through performance management, the Compact Index Compact Index series of interviewing techniques for supervisors to ensure fairness and equality of principle for employee retention of PEGATRON is to respect, cultivate and value our Sustainability Sustainability recruitment as well as the quality of talents. In addition to professionalism, candidate’s Development Goals Development Goals employees. We provide complete training programs and job rotation plans according to of the United Nations of the United Nations ability, value, contribution and ability to blend in with company culture are also important employees’ IDP analysis results combined with their own career goals. In addition, we Statement Statement indicators. We have the principles in place for selecting the best talents for the tasks on 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 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 assessment system covers all employees worldwide, and we announced a clear appraisal rule and assessment process. The work incentives and disincentives are internal 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 employees’ performance. Annual employee development plans are set according to assessment results. While assisting employee 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 analysis results combined with their own career goals. In addition, we have personal development projects for employees to help them to nd their potential
39 abilities and perform better. supervisor will review the performance and give advice to the employee. Editorial Principles Editorial Principles East China, Central China and West China operation centers develop competitive salary A Word from A Word from the CEO the CEO standards based on the minimum wage levels announced by local government, wage The platform o ers employees over one thousand books to guidance and the level of industry wages. We also raise the salary with a certain Pega e-library Identi cation & Identi cation & borrow and read. Communication Communication proportion for the existing employees to increase their incomes. In addition to the basic Social Responsibility wages and overtime pays, we set up additional bonuses or allowances, which let our Commitment employees be paid far more above local minimum wages, so as to make sure that the To support the management philosophy of PEGATRON Group, which is “Happy Working, Stakeholder salary levels meet the arrangement of company's competitiveness development. Joyful Living”, we expect all employees to work pragmatically and positively, and inspire the Communication potential of each other by working through various challenges. Since “talent” is one of the Material Issue determining factors in corporate competition, we emphasize on talent nurturing to Identi cation encourage our employees to achieve more excellent performances. We continuously invest Sustainability resources in nurturing talents and educational training programs for employees to enhance Development Goals Employee Training Company Pro le Company Pro le █ their core and professional abilities. An environment is built for all employees to develop their core and professional abilities, and help them to achieve job satisfactions while About PEGATRON PEGATRON emphasizes on career planning and talent development for employees by working. We hope all employees can balance their lives and work, and also have happiness. Financial Performance encouraging them to attend internal and external training programs. Internal training Globalization programs include courses for core competency and professional competency Arrangement development to enhance employees’ capabilities. We also assign employees to attend Award List external training programs which include seminars or conferences organized by external Sustainable Sustainable Management Management parties that provide excellent and professional training opportunities. For employees who Corporate Governance Corporate Governance change their jobs or roles, the company will provide general, management and Code of Conduct Code of Conduct professional trainings to reduce their insu ciencies, we also appoint mentors to help them to adapt to the working environments in a short period of time. PEGATRON Information Security Information Security Business philosophy Risk Management Risk Management Resources of Regulatory Compliance Regulatory Compliance Description Responsible Responsible Learning Partnership Partnership Professional Competency Self- On-Job Customer Service Corporate introduction, corporate culture, and online Training Training Development Training • Sustainable orientation programs are included to help new employees Supply Chain to know about PEGATRON and adapt to the new work • Special Skill Training • New Employee • Business English • Job Rotation Sustainable Sustainable New employee environment. Orientation On-Line Program Environment Environment orientation • Department/ • Work Following In order to help new employees to be familiar with the Cross Department • New Manager • Culture and Arts Low Carbon & Energy • Project Drill •environment and the internal procedures quickly, each new Professional Training Orientation Lecture Greenhouse Gas • Mentor employee may have one mentor. • External Training • Management Training • Association Sustainable Design • Deputy Program • Overseas Training • Core Competency • Pega-e Library Environmental Protection Core competency We plan training programs for employees in each level based (ex: Conference, Training Joyful Work Joyful Work training on their competencies. exhibition, course, • Talent Development etc.) Employment Program for High Relationship Management We plan management training such as new manager Level Managers Attracting & training orientation based on roles and responsibilities of supervisors. • General and Nurturing Talent Management Lecture Occupational Professional Each unit plans professional competency training programs • Management] Health & Safety competency training based on the needs of professional knowledge and skills. Case Study Employee Care Social Care Social Care In order to hand down the internal knowledge, “train the Improve professional With systematical Encourage proactive Individual Social Welfare Social Welfare Train the trainer knowledge and skills learning map, and autonomous development plans trainer” training programs are held every year. And both of Community Community training through trainings or employees can learning development. with managers’ Involvement Involvement e-learning and classroom training programs are included. exercises planned by prepare for their future assistance will help Appendix-Index Appendix-Index managers or Learning careers, develop and employees improve General lecture Art, life and management lectures are included. GRI content index GRI content index & Department. stimulate their and enhance their management talents work skills. United Nations Global United Nations Global The development plan for next year will be determined jointly Compact Index Compact Index and potential. by an employee and his/ her direct supervisor based on the Sustainability Sustainability IDP Development Goals Development Goals discussion results between them. An employee can conduct of the United Nations of the United Nations several development ways, including training, reading and the Statement Statement participation or initiation of a project to practice the plan. The 40 We emphasize the training and development 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 the workplace safety. To meet local regulatory requirements is A Word from A Word from series of learning pathways, including learning from model sta s, reading, and a baseline for us and we not only arrange health seminars and checkups, but also the CEO the CEO participation of various training courses, such as orientation training, core skills training, implement suitable health promotion projects for di erent needs of local employees. Identi cation & Identi cation & management training, professional training, new director training, internal lecturer Furthermore, for occupational safety and health issues, we have implemented several Communication Communication training, all kinds of seminars and external training programs. The training objects include management procedures and operational control measures to eliminate the work related Social Responsibility all employees and the annual training plans are set. The employees also can learn through incidents. We also establish the preparedness and response plans in response to di erent Commitment online learning system “e-learning” regardless the limitation of time and place. risk levels and scenarios to strengthen the safety and health management in working Stakeholder Communication environments. Material Issue Identi cation Sustainability PEGATRON IDP participation rates in 2017(%) Development Goals Occupational Safety Company Pro le Company Pro le Employees receiving individual development plans in 2017 █ About PEGATRON Financial Performance Participation Ratio of IDP (%) Management system Globalization 【 】 Arrangement Worker Type Location PEGATRON pays attention to the risk assessment and management of our overall Award List Total Rate Sustainable Sustainable General Employee Supervisor operations. We periodically perform CSR related risk identi cations, evaluations, controls Management Management and reviews. We have de ned the standards of procurement management and Corporate Governance Corporate Governance Taiwan 80.3 82.1 75.4 management of changes (MOC) in our PureCSR management procedures. In addition, Code of Conduct Code of Conduct each site obeys to its local authority’s requirements to perform work environmental China 91.4 92.0 89.9 Information Security Information Security monitoring and occupational exposure assessments to ensure occupational safety and health of all employees as well as the quality of work environment. For the Risk Management Risk Management Remark: Regulatory Compliance Regulatory Compliance (1) Participation rates (%) = No. of IDP Participator / No. of who should participate IDP communication of risks, in addition to PureCSR Steering Committee Meetings, PureCSR & Responsible Responsible (2) Managers including Frontline Supervisors, Middle and High Level Managers, and Business Directors. EHS Committee Meetings and the employee suggestion boxes, we have put risk Partnership Partnership (3) Mexico and Czech Plant did not implement the IDP. identi cation, risk management and risk perception as important items in training and Customer Service regular promotion. Sustainable Supply Chain PEGATRON Training Performance in 2017 PEGATRON establishes the appropriate occupational safety and health management Sustainable Sustainable system based on OHSAS 18001 (Occupational Health and Safety Management System), Environment Environment and gets the certi cation by third parties. We promote the safety and health working Average Hours of Training Per Employee (hrs.) Low Carbon & Energy environment through daily inspections and audits, and conduct CSR training programs in Greenhouse Gas Location General Employee Supervisor accordance with internal procedures and legal regulations, including occupational safety Sustainable Design Male Female Male Female and health related training, corporate social responsibility audit training, introduction of Environmental corporate social responsibility management system and other online training programs. Protection Taiwan 12.5 13.8 14.4 13.5 Headquarters in Taipei is regarded as the information integration center of global ESH Joyful Work Joyful Work organizations. All EHS related data and information will be aggregated and reported to Employment China 8.6 8.8 8.6 10.2 Relationship management level. The dedicated occupational health and safety unit and PureCSR & EHS Mexico Attracting & 24.5 21.8 31.5 21.0 Committee have been set up in each site. The committee of each site regularly reports the Nurturing Talent a airs related to PureCSR management system and these issues may need to be further Czech 40.8 36.2 41.5 3.7 Occupational reviewed by Steering Committee (SC). The results and performances are reported to the Health & Safety General Managers of all sites. Employee Care Remark: Social Care Social Care (1) Average Training Hours = Total Hours of Training / No. of Employee have been trained. Each site has set up annual ESH objectives & targets and various types of management Social Welfare Social Welfare (2) Managers including Frontline Supervisors, Middle and High Level Managers, and Business Directors. procedures. The PureCSR & EHS Committee Meetings are regularly convened with Community Community employee representatives to communicate and consult on internal PureCSR and EHS Involvement Involvement performance. Each site not only complies with the local regulatory requirements, but also Appendix-Index Appendix-Index works out in conformity with international trends, customer requirements and PureCSR GRI content index GRI content index policy towards continuous improvement. United Nations Global United Nations Global Occupational Health & Safety Compact Index Compact Index Sustainability Sustainability Development Goals Development Goals Identify the Safety & Health Hazards in Workplaces and Control of the United Nations of the United Nations Statement Statement the Risks, as well as Build a Healthy Working Culture. 41 Proportion of employee representatives of PEGATRON in 2017(%) signed by the contractors while they sign the contracts with us. The contents of the Editorial Principles Editorial Principles agreement include the procedures regarding signi cant environmental aspects and safety & health risks, as well as the notice of safe work that the contractors have to obey. A Word from A Word from Location Taiwan China Mexico Czech the CEO the CEO EHS professionals periodically perform environmental, safety and health (EHS) training Identi cation & Identi cation & Proportion (%) 44.8 30.1 12.5 53.8 programs to contractors. The agenda of the training programs includes basic knowledge Communication Communication on EHS, working environment and hazard noti cation, etc. Social Responsibility Commitment Proportion (%) = number of worker representatives / Number of members in PureCSR EHS committees In addition to control the access of contractors via identity identi cation system, the Stakeholder * 100 % construction permit application system is in place to manage all dangerous construction Communication works. The high risk works shall be overseen by the quali ed personnel at all time and the Material Issue Identi cation EHS professionals shall also perform the inspections to see if the working scene can meet Sustainability Occupational Hazards our EHS requirements. The work permits shall be approved prior to doing the special Development Goals 【 】 works, including re, working at heights, hanging operation or working in a con ned Company Pro le Company Pro le To prevent occupational hazards and protect employees’ safety & health, we have built space. The safe working scenario, such as the quali cation or personnel who conducts the About PEGATRON dedicated units to conduct the overall planning for addressing environmental and safety work and the safety status of workplace shall be con rmed by EHS professionals. The work Financial Performance & health matters. We conform to the local occupational safety & health regulatory can only start after EHS approval. Globalization requirements and identify the potential risks as well as ask all employees to comply with Arrangement occupational safety & health standard operating procedures. Also, we have implemented Award List safety & health training programs to practice self-checks for operations and maintenance Sustainable Sustainable PEGATRON work related injury statistics in 2017 Management Management of facilities to eliminate the occupational hazards. Furthermore, in monthly EHS Corporate Governance Corporate Governance committee meetings, EHS units share important incidents as case studies to all EHS Code of Conduct Code of Conduct representatives from di erent business units or functional units. Meanwhile, the parallel Disabling Disabling Absence Occupa- Work- investigation will be performed and the status will be reviewed to check the conformity of injury injury rate (AR) tional related Information Security Information Security Location Gender Risk Management Risk Management other factories and prevent the similar incidents from reoccurring. frequency Severity disease rateFatalities rate (SR) Regulatory Compliance Regulatory Compliance We control the chemicals from the beginning. Safety data sheet (SDS) shall be available rate (FR) (ODR) Responsible Responsible Partnership Partnership before the formal use of chemicals. This mechanism can help us to evaluate the hazard characteristics of chemicals and avoid the use of chemicals with signi cant risks. Through Male 1.32 15 0.63 0.00 0 Customer Service Taiwan Sustainable the risk assessment, high risk jobs can be identi ed. The occupational hazards notice card Female 0.44 13 0.57 0.00 0 Supply Chain has been established and the information regarding personal protective equipment list Male 0.11 1 0.98 0.00 0 Sustainable Sustainable and the instructions for use are included in the card which can provide useful information China Environment Environment to employees. The annual medical checkups continue to be given for the employees Female 0.02 0 0.52 0.00 0 Low Carbon & Energy whose jobs are related to occupational hazardous factors per legal requirements, Male 0.17 3 0.23 0.00 0 Greenhouse Gas including pre-employment, in employment and post-employment medical checkups. Mexico Sustainable Design The reports of these medical checkups are well managed in a systematic way. Once any Female 0.00 0 0.11 0.00 0 Environmental abnormal condition is discovered, immediate actions will be taken to ensure the health Male 1.42 62 3.51 0.00 0 Protection status of employees. Czech Joyful Work Joyful Work Female 0.95 145 4.15 0.28 0 Employment PEGATRON conducts incidents investigation and root cause analysis according to the Relationship requirements of local regulatory regulations and OHSAS 18001 management system. The (1) Disabling injury frequency rate (FR) = number of disabled people / total working hours*1,000,000 Attracting & corresponding corrective actions will be set up and in place to prevent them from (2) Disabling injury severity rate (SR) = number of lost day / total working hours* 1,000,000 Nurturing Talent reoccurring. Training programs and noti cations will be provided to all relevant (3) Absence rate for work related injury (AR) = number of absence day / total working days* 100 Occupational (4) Occupational disease rate(ODR) = number of people with occupational disease /total working hours* 200,000 Health & Safety employees to enhance their capabilities on emergency response and lower the e ects of Employee Care harms and losses. In the future, management measures will continue to be implemented (5) Minor injuries are not included in this table. Social Care Social Care to perfect our working environment. Social Welfare Social Welfare Emergency Response Community Community 【 】 Involvement Involvement Contractor Management Sustainable development is the main target of business operations in PEGATRON Group. Appendix-Index Appendix-Index 【 】 In response to the impacts on our company by climate change, we have implemented GRI content index GRI content index PEGATRON not only rules itself to meet the safety requirements on production, but also corresponding emergency response procedure in each manufacturing center. We have United Nations Global United Nations Global asks all contractors to follow PEGATRON’s requirements and applicable local safety minimized potential damages and impacts by setting up a response mechanism, and Compact Index Compact Index regulations. The quali cation of the contractors shall be reviewed to ensure they can meet planning as well as periodic training programs and drills. Sustainability Sustainability the requirements of PEGATRON contractor management procedure. The environmental, Development Goals Development Goals PEGATRON has issued preparedness and response procedure and established the emer- safety and health risks, rules and regulations shall be communicated to the contractors of the United Nations of the United Nations gency noti cation mechanism in each site to reduce the risks of re, typhoon, ood, earth- prior to the operations in our facilities. Besides, the safety production agreements shall be Statement Statement quake, chemical leakage and liquid gas leakage. We improve the abilities of our response
teams and enhance the awareness of all employees through periodic training programs and drills. Take HQ‘s implementation for example, in addition to install Automated Exter- nal De brillator (AED), we also strengthen the training of rst aid personnel, as well as establish the procedure to improve the capabilities of relevant people 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 cooperated with the local government's response mechanism. Sustainable development is the main target of business operations in PEGATRON Group. In response to the impacts on our company by climate change, 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 emer- gency noti cation mechanism in each site to reduce the risks of re, typhoon, ood, earth- quake, chemical leakage and liquid gas leakage. We improve the abilities of our response
42 teams and enhance the awareness of all employees through periodic training programs For the facilities in HQ, we set up a health care room with professional doctors. According Editorial Principles Editorial Principles and drills. Take HQ‘s implementation for example, in addition to install Automated Exter- to the health care system, employees can use health insurance cards to see doctors. We A Word from A Word from nal De brillator (AED), we also strengthen the training of rst aid personnel, as well as also set up a comfort and warmth nursing room for female employees in the workplace to the CEO the CEO establish the procedure to improve the capabilities of relevant people on rst aid. The feed the breast milk and encourage breastfeeding. We also have massage rooms to Identi cation & Identi cation & emergency response plans of Central China Operation Center include the re escape plan, provide sta s relief from stresses. The health website is built as a platform to promote Communication Communication special machinery and equipment contingency plan, chemical spill contingency plan, health activities and provide employees related online information as well. Social Responsibility Commitment con ned space rescue plan and food poisoning contingency plan. East China Operation Stakeholder Center also establishes a number of contingency plans and cooperated with the local Communication government's response mechanism. Material Issue 2017 Health Promotion Activity in HQ Identi cation Sustainability Development Goals HQ Topic Participation Evacuation drills and emergency training programs by Region in Company Pro le Company Pro le 1 Cancer prevention for women -Pap smear test 150 About PEGATRON in 2017 2 Health care of high risk groups 35 Financial Performance 3 Fun and energetic for climbing stairs 9540 Globalization 310 Arrangement Location Taiwan China Mexico Czech 4 In uenza vaccination 143 Award List 5 Blood donation 4572 Sustainable Sustainable Times of evacuation drills 10 261 2 2 6 Massage service Management Management 7 Oral health screening 2430 Times of emergency response training 31 106 1 2 Corporate Governance Corporate Governance 8 Healthy Weight Management-2017 732 Code of Conduct Code of Conduct Information Security Information Security We establish the epidemic prevention group and develop the infectious diseases report- Risk Management Risk Management ing mechanism to monitor the epidemic condition, integrate the goods and materials 2017 Health Promotion Lecture in HQ Regulatory Compliance Regulatory Compliance and adjust the control procedure based on the levels of epidemic conditions. Once the Responsible Responsible critical infectious disease occurs, the reporting mechanism can reduce the chance of Topic Theme Partnership Partnership infection and prevent the negative impacts on operations. Customer Service • Chinese medicine lecture for women Sustainable • Good pregnancy Supply Chain Woman Health • Easy parenting without worry Sustainable Sustainable Environment Environment Occupational Health • Canteen interaction lecture- Do you eat right? Weight Management Low Carbon & Energy █ • Healthy Walking Lecture Greenhouse Gas Cardiovascular Care • Away from Heart Disease Sustainable Design The health care program for employees in PEGATRON is given based on the needs of • Sweeten your home with heart Environmental employees and the features of each site. We provide 4 dimensions of projects integrating Health Topics Protection work and life to promote their health and elevate their lives quality, including health man- • How to open the minds of your family members Joyful Work Joyful Work agement, health promotion, occupational hygiene and employee assistance project Employment (EAP). In order to improve the working environment proactively, the cross-functional team Relationship was established and the project for the employees who may have potential heart diseases Attracting & was also provided. By analysis of their workloads, the health instructions can be given Nurturing Talent accordingly. We can promote the health culture and make the strategy of occupational Occupational Health & Safety disease prevention be practically implemented in the company. Employee Care For the employees’ health management, each manufacturing center has set up the Social Care Social Care In rmary to provide outpatient services by professional physicians. Also, several health Social Welfare Social Welfare checkups are conducted as regulated. The results of the health checkups are classi ed Community Community Involvement Involvement into di erent levels for follow up actions, which are regulated by the local authorities. We Appendix-Index Appendix-Index have promoted many health related activities, including weight management, stair climb- ing activity, ergonomic programs, relaxation massage, vaccine injection and health GRI content index GRI content index lecture courses. Furthermore, for promotion of maternity protection, the nursing rooms United Nations Global United Nations Global Compact Index Compact Index have been built in every operation center and manufacturing center where can provide Sustainability Sustainability employees to use when needed. For di erent stages of pregnant employees, including Development Goals Development Goals pre-pregnant, pregnant and post-pregnant, we provide di erent health promotion mea- of the United Nations of the United Nations sures for them to protect their bodies and mental health. Statement Statement 43 2017 Health Promotion Activities 2017 Health Promotion Lecture in PSH Editorial Principles Editorial Principles Taoyuan Manufacturing Center 【 】 A Word from A Word from 【 】 PSH Topic Participation the CEO the CEO Identi cation & Identi cation & TY Topic Participation 5 First aiders training (trained externally) 233 Communication Communication 6 Blood donation activity 308 1 Medical checkup upgrade project and cancer screening activity 100 Social Responsibility 7 Health lecture by hospital 79 Commitment 2 Cancer prevention for women 28 8 Health promotion from CDC 538 Stakeholder 3 Liver protection activity (abdominal ultrasound examination) 39 Communication 4 Recheck for abnormal cases in annual medical checkup activity 49 9 Hot disease prevention 160 Material Issue 5 Health promotion for people with metabolic syndrome 63 10 In uenza prevention activity 130 Identi cation Training for getting more understanding on ergonomic 6 11 Wash hands promotion activity 120 Sustainability hazardous factors 34 Development Goals 12 First aiders training (trained internally) 392 7 In uenza vaccination 24 Company Pro le Company Pro le 8 Health promotion announcement and training activity 9 13 Health promotion lecture in March for women 32 About PEGATRON The evaluation of heart disease due to workloads and the 14 Health promotion lecture for summer in June 31 Financial Performance 9 62 corresponding health promotion activities 15 Health promotion lecture for epidemic diseases in September 41 Globalization 10 Health evaluation of maternity protection and promotion activity 9 Arrangement 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 Sustainable Central China Operation Center Supply Chain 【 】 Sustainable Sustainable Environment Environment PSZ Topic Participation Low Carbon & Energy 1 Everybody learns rst aid Greenhouse Gas 855 2 Lecture for becoming healthier Sustainable Design 400 Environmental Protection Joyful Work Joyful Work Employment 2017 Health Promotion Lecture in PCQ Relationship 【 】 Attracting & Nurturing Talent PCQ Topic Participation Occupational 1 Healthy exercise we can do in the o ce 362 Health & Safety 2 Eyes protective exercise 362 Employee Care Social Care Social Care 3 Women disease prevention 25 Social Welfare Social Welfare 4 Chinese medicine treatment (twice) 58 Community Community 2017 Health Promotion Lecture in PSH 5 Health promotion lecture of caring the breast 15 Involvement Involvement 【 】 6 Health promotion lecture- breakfast is good for you 18 Appendix-Index Appendix-Index PSH Topic Participation 7 Health meals for employees 6,500 GRI content index GRI content index United Nations Global United Nations Global 1 New citizen in healthy city, caring and sharing 192 8 Lecture of the prevention of upper respiratory tract infection 12 Compact Index Compact Index 2 Building a healthy city, sharing a healthy life 240 9 Health promotion- Posters 1 Sustainability Sustainability 3 Prevention of high blood pressure Development Goals Development Goals 316 of the United Nations of the United Nations 4 Prevention of tuberculosis 220 Statement Statement 44 Czech Manufacturing Center Food testing results process: Editorial Principles Editorial Principles 【 】 A Word from A Word from PCZ Topic Participation the CEO the CEO Testing Identi cation & Identi cation & 1 First aid training 29 Communication Communication results 2 Presentation for carpal tunnel symdrome 12 Social Responsibility OK Commitment all core and NG 3 Vitamin packages Providing Stakeholder temporary employees Communication Food management all core and Material Issue 4 Protective drink Providing Dept. Identi cation temporary employees Sustainability Development Goals Abnormal Notice Company Pro le Company Pro le About PEGATRON Financial Performance Supplier con rmation Globalization Cooked food/dishes The ingredients Arrangement Award List Sustainable Sustainable Management Management Improvement Inventory Checking Corporate Governance Corporate Governance Code of Conduct Code of Conduct Mexico Manufacturing Center Information Security Information Security 【 】 NG Con rm the Abnormal Replaced with Risk Management Risk Management PMX Topic Participation improvement Item Return Quali ed Substitution Regulatory Compliance Regulatory Compliance 1 Promote health care (information by triptych): Healthy Heart 191 Responsible Responsible OK Partnership Partnership 2 Promote health care (information by triptych): Urinary infections 191 Customer Service 3 Promote health care (information by triptych): Palm Oil 164 Sustainable Manager Signed Supply Chain 4 Promote health care (information by triptych): Metabolic Syndrome 174 Sustainable Sustainable 5 Early detection of diabetes program 185 Environment Environment 6 Eyes care program 158 Monthly Payment Low Carbon & Energy 7 Early high blood pressure protection program 133 Statistics Greenhouse Gas 8 Promote health care (information by triptych) : Cerebral vascular disease 256 Sustainable Design Annual 9 In uenza prevention program 49 Environmental Assessment Protection 10 Promote health care (information by triptych) : Bronchitis 123 Joyful Work Joyful Work Employment Closed Relationship Attracting & Nurturing Talent Occupational Food safety control - food testing laboratory Health & Safety 【 】 Employee Care The food safety events are endlessly in recent years. In order to ensure meals safety for Social Care Social Care employees, food testing laboratories (FTL) have been set up in Central China and East Social Welfare Social Welfare China Operations Centers successively. In Central China Operation Center, FTL has Community Community established since 2008 and hired the persons who were certi ed by national labors and Involvement Involvement the social security departments to manage the testing of food, tableware, drinking water Appendix-Index Appendix-Index and ingredients. The FTL has biochemical incubators, high-pressure steam sterilizer, GRI content index GRI content index mufti-functional food safety detector, and so on. There are 40 food testing items currently. United Nations Global United Nations Global We will increase to test high risk items and promote the food safety management system Compact Index Compact Index to other sites continuously in the future. Each site will also follow ISO/IEC17025 to Sustainability Sustainability Development Goals Development Goals manage laboratory operation, and strive for a better service so that employees can eat of the United Nations of the United Nations healthy and relieved. Statement Statement 45 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 West China 4. Online Service Platform various channels that have been set up for them. We believe the company’s culture and 7070 Communication Operation 5. HR Service Center work atmosphere can be improved by hearing the voices of our employees. In addition to Center Material Issue setting up communication channels, we emphasize on the health care and occupational 6. Meeting with Factory Teacher Identi cation 7. Meeting with Factory Director and General Manager Sustainability safety of our employees. PEGATRON considers our sta s to be a very important asset. In 8. Employee and Management Meeting Development Goals order to let employees have productive contribution, PEGATRON pays attention to the Company Pro le Company Pro le work-life balance of our employees. We provide timely care and help for employees, while Mexico 1. Suggestion Box Manufacturing 2. E-mail Box ([email protected]) 1 About PEGATRON enhancing our company’s productivity as well as reducing employee turnover rate. Center Financial Performance Czech 1. Suggestion Box Globalization Manufacturing 2. E-mail Box ([email protected]) 189 Arrangement Center 3. Canteen Committee Award List Communication Channel Sustainable Sustainable █ Management Management Corporate Governance Corporate Governance The company emphasizes the employee welfares and caring, harmonious relationship Code of Conduct Code of Conduct Classi cation table of PEGATRON employee communication types and the employees’ opinions. Employees can communicate with the management Information Security Information Security through suggestion boxes, meetings and email boxes to express their feelings and raise in 2017 : Risk Management Risk Management questions so as to maintain the good relationship between labors and management. Regulatory Compliance Regulatory Compliance HQ& Toayan Manufacturing Center Responsible Responsible PEGATRON has set up multiple communication channels including the employees’ Occupational & Health 5.5% Partnership Partnership ● Customer Service suggestion box (i-PEGA BOX), departmental service hotlines, EAP (Employee Assistant Human Resource 11.5% ● Sustainable Programs) and so on. There are also counseling hotlines, health hotlines, and a grievance Computer 12.6% Supply Chain mechanism in place in our sites to e ectively help to solve employees’ problems. ● Environment 22.9% Sustainable Sustainable Employees can choose di erent channels depending on their needs. For example, in ● Environment Environment Administration 36.4% Central China Operation Center, it has a variety of communication channels for employees, ● Low Carbon & Energy Others % including “Big Sister Studio”, “Recruitment Counseling O ce”, “Living Area Employee ● 11.1 Greenhouse Gas Service Center”, Employee Representative Meeting”, “Employee Regular Interview” and so Sustainable Design on, so as to timely and e ective solve their problems. The purpose of “Big Sister Studio” is Environmental "service with care , care with love ", providing not only a variety of communication Central China Operation Center Protection channels (WeChat, QQ, hotline 62450, email [email protected], mailbox, Occupational & Health 3.5% Joyful Work Joyful Work ● message, interview), but also psychological counseling, personality analysis, career Human Resource 3% Employment ● Relationship planning and other services, so as to promote the healthy development and enhance the Computer 0.4% sense of belonging of employees. ● Attracting & Environment 1.3% Nurturing Talent ● Administration 43% Occupational ● Health & Safety Others % ● 48.7 Employee Care PEGATRON Employee Suggestion in 2017 Social Care Social Care Social Welfare Social Welfare Community Community Location Communication Channel Number East China Operation Center West China Operation Center Involvement Involvement All Business Ethics Box ([email protected] ) Occupational Occupational / ● 10% ● 1% Appendix-Index Appendix-Index & Health & Health GRI content index GRI content index HQ & Taoyuan 1. I-PEGA ([email protected]) 253 Human Resource 20% Human Resource 94.8% United Nations Global United Nations Global Manufacturing 2. Suggestion Box ● ● Compact Index Compact Index Center Environment 20% Computer 0.7% ● ● Sustainability Sustainability Administration 50% Environment 1.7% Development Goals Development Goals East China 1. Employee Service Center ● ● 2. Help Center ([email protected]) 10 Administration % of the United Nations of the United Nations Operation ● 1.8 Statement Statement Center 3. Union 46 Mexico Manufacturing Center Czech Manufacturing Center Channels for Caring Employees : Editorial Principles Editorial Principles Administration Occupational ● ● 12.2% A Word from A Word from 100% & Health Location Channel for caring employee the CEO the CEO Human Resource 41.8% Identi cation & Identi cation & ● HQ & Taoyuan Employee Mental Health Hotline, Regular Sta Interview, Employee Assistance Communication Communication Computer 1.1% ManufacturingCenter Program(EAP), Suggestion Box, Harassment grievance email ● Social Responsibility Environment 0.5% Hi_Sister workshop, Employee Representative Meeting, Counseling Service Commitment ● Central China Administration % Center for New Employees, Counseling Window for Employee Relationship, Stakeholder 31.2 Operation Center ● Meeting with Factory Director Communication Others % ● 13.2 East China Material Issue Employee Service Center, Help Center, Union, Mentor, Suggestion Box Identi cation Operation Center Sustainability Hotline, Email for Employee Relationship, On-line Service Platform, HR Service Development Goals West China 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 Operation Center operating status and directions, our CEO holds face-to-face CEO dating meetings regularly Factory Director and General Manager About PEGATRON Mexico every year. This helps our employees to have a more in-depth understanding of the Suggestion box, Sta interview Financial Performance Manufacturing Center company’s decision making processes. We held 4 Co ee Talk meetings in 2017. Globalization Czech Arrangement Suggestion box, Regular department meeting, Employee survey Manufacturing Center Award List Sustainable Sustainable Management Management PEGA Talk‧Best Communication Corporate Governance Corporate Governance Employee welfare Code of Conduct Code of Conduct █ Information Security Information Security Risk Management Risk Management “Joyful Working; Happy Living” is PEGATRON’s philosophy to employees. we endeavor to Having a Talk show our cares to all employees. We hope our employees can focus more on family Regulatory Compliance Regulatory Compliance Responsible Responsible during spare time and have the right of unpaid parental leave for raising children and the Partnership Partnership with CEO retirement program. Welfare measures of PEGATRON are divided into two parts, bene ts Customer Service Let’s have some tea. provided by the company and by welfare committee. Every bene t is disclosed through Sustainable the announcement, company website or email, so that employees are aware of the Supply Chain bene t and know how to apply it. We provide labor and health insurance, group Sustainable Sustainable insurance in Taiwan, and regularly hold cultural lectures. The leave and attendance rule is Environment Environment also better or 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 di erent bene ts for options such Environmental as travel, medical care, recreation and bene ts. The Year-end party, community activities, Protection Employee bene ts are discussed in our quarterly employee welfare committee meetings. team sports, family days, arts and culture activities are all for employees’ choices. We hope Joyful Work Joyful Work The employee representatives are responsible for expressing opinions of our employees our employees can focus more on family during spare time. A more favorable consumer Employment to communicate with the company. channel is provided to colleagues by our welfare committee, and our special shops cover Relationship 11 types of dining, sports, learning, leisure, arts, home living, education etc., so as to o er Attracting & PEGATRON has implemented many mental health programs in each manufacturing center Nurturing Talent to provide calm and relaxing channels for employees. We also set up special psychological preferential treatments for employees. Occupational consultation rooms to assist employees to solve the di culties they are facing. Health & Safety To promote teamwork among colleagues and aid in personal rejuvenation, HQ has held Employee Care We o er many types of assistance care activities for our employees, including consulting planting activities which give colleagues to have fun at planting on the roof since 2014. In Social Care Social Care hotlines, counseling rooms, suggestion boxes and regular interviews. PEGATRON also addition to the bene t of greenery, the process of planting also increases environmental Social Welfare Social Welfare combines social workers and psychologists in a special cooperation model to provide awareness. We regularly invite experts to teach colleagues about planting techniques. Community Community psychological counseling EAP (Employee Assistance Programs) service. We select suitable From 2015, the activity has been held twice per year and around 700 people participated Involvement Involvement teachers and provide psychological consultation services based on employees’ issues and in each plant. We have a lottery system due to the limitation of the cultivation area, and Appendix-Index Appendix-Index help them to solve their psychological problems. the number of participants of each cycle is around 400 people. GRI content index GRI content index United Nations Global United Nations Global Compact Index Compact Index Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 47 retirement needs of current relevant employees. For more details, please refer to Editorial Principles Editorial Principles PEGATRON’s 2017 Financial Report for pensions. A Word from A Word from the CEO the CEO http://www.pegatroncorp.com/investorRelation/annualReports/lang/en_US Identi cation & Identi cation & PEGATRON has held the “Super Basketball League” since 2014. It not only enhances the Communication Communication sporting habit, but also makes the team spirit stronger. Furthermore, it also promotes Social Responsibility Commitment colleague friendships and improves work e ciency. A public website was built for the Stakeholder tournament schedule and team member introduction. The activity has received praise Communication from employees and is planned as an annual event. Material Issue Identi cation Sustainability Development Goals Company Pro le Company Pro le We provide an integrated welfare system and treat all employees equally on all sites. About PEGATRON Welfares in PEGATRON are divided to bene ts, incentives, gifts and events to express our Financial Performance group’s willing of “Joyful Working; Happy living ". Some welfares might be di erent Globalization according to di erent workplaces, but all welfare programs are in comply with or better Arrangement than the requirements of local regulations. Award List Central China Operation Center regularly organized cultural activities to enrich the lives Sustainable Sustainable Management Management of employees. “EHS Month Activity” was initiated for the purpose of encouraging Corporate Governance Corporate Governance employees to learn and contact things which are di erent from their works and get Code of Conduct Code of Conduct more understanding on CSR. There were around 2,230 people joined the activity Information Security Information Security mentioned above. Risk Management Risk Management Regulatory Compliance Regulatory Compliance Responsible Responsible Partnership Partnership Employee Bene ts in each site: Customer Service Sustainable Location Item Supply Chain Sustainable Sustainable HQ & Taoyuan birthday gifts, festival bonus, meal allowance, vouchers, reunion Environment Environment Manufacturing Center day, family day Low Carbon & Energy marriage gifts, fertility gifts, funeral condolences, birthday gifts, Greenhouse Gas East China Operation Center emergency assistance payment Sustainable Design Environmental marriage gifts, fertility gifts, funeral condolences, birthday Central China Operation Center Protection compensation, family day, intimate activities Joyful Work Joyful Work marriage gifts, fertility gifts, funeral condolences, sunshine fund, Employment West China Operation Center Relationship meal allowance, subsidy for end of year party. Attracting & Mexico Manufacturing Center meal allowance, savings fund, medical Insurance (ADM) Nurturing Talent Occupational Czech Manufacturing Center pension insurance , meal allowance Health & Safety Employee Care Social Care Social Care Social Welfare Social Welfare For those who choose the new pension fund system, PEGATRON allocates 6% of Community Community Involvement Involvement employees’ monthly salaries as pensions based on “Labor Pension Act for new system" Appendix-Index Appendix-Index and put the pensions in personal retirement accounts established by the Bureau of Labor GRI content index GRI content index Insurance. Employees can make voluntary contributions from 0% to 6% for their pensions United Nations Global United Nations Global and the voluntary contribution will be fully deducted from their annual personal Compact Index Compact Index consolidated income tax. For those who choose the old pension fund system, PEGATRON Sustainability Sustainability allocates 2% of employees’ monthly salaries as pensions based on "Labor Standards Law Development Goals Development Goals of the United Nations of the United Nations for old system " and put the pensions in old pension fund system accounts to meet the Statement Statement Navigate Social Care the Work with local communities to Future develop appropriate welfare activities. 49 PEGATRON Central China Operation Center (PSZ) Editorial Principles Editorial Principles Social Welfare 【 】 A Word from A Word from The Central China Operations Center, in addition to responding to the group charity activities, the CEO the CEO also continues to invest in long-term public welfare activities to contribute to the local com- Identi cation & Identi cation & More than Technology, We Irrigate the Society with Culture and Arts. munity. A total number of 363 people participated in the event of blood donation in 2017. Communication Communication Social Responsibility We fully implement social responsibility from the inside out to understand the true needs from Commitment di erent parties, and positively encourage all employees around the world to follow. For the Stakeholder planning of activities, community participations and empathy actions, we start internally and Communication promote them to neighboring communities, then extend to where they are most needed. Material Issue Identi cation ADOC 2.0 program initiated by private companies is committed to promote social Sustainability welfares. When Stan Shih attended the APEC leaders' meeting in 2007, ADOC 2.0 program Development Goals was proposed to assist APEC members’ economies to work together with Taiwan for e ec- Company Pro le Company Pro le tive reduction of the digital di erence and creation of digital opportunities. They also asked About PEGATRON the private sectors and the non-pro t organizations to join in. Our chairman Tzu-Hsien, Financial Performance Tung became its convener in 2014. In addition to the technology industry as main public Globalization Arrangement service unit, they continue to expand the in uence on arts and cultural industry to have Award List more power with arts and cultural elements. Sustainable Sustainable PEGATRON actively participates in public events, sponsors many kinds of organizations, and Management Management commits to care for the weak and poor. We continue to pay attention to the reading and Corporate Governance Corporate Governance digital di erence problems of children in remote area of the eastern countryside, so that we Code of Conduct Code of Conduct provide necessary materials and equipment for them. For 0206 Tainan earthquake, we not Information Security Information Security only donated to “Tainan City Government Bureau of Social A airs” and “Ministry of Health Risk Management Risk Management and Welfare” for post-disaster reconstruction, but also paid attention to the psychological Regulatory Compliance Regulatory Compliance construction and long-term counseling of children and families impacted by the earth- Responsible Responsible Partnership Partnership quake commissioned through “North Tainan Home Support Center” and “World Vision”. Customer Service PEGATRON also involved in cultural development, arts events and sports events in recent PEGATRON East China Operation Center (PSH) Sustainable years, and sponsored activities in music, drama, dancing as well as literary creation, academ- 【 】 Supply Chain ic seminars and health promotion to ful ll our corporate social responsibility commitment. Our East China Operation Center held and participated in a lot of local public welfare Sustainable Sustainable activities. Throughout the activities, we expected that these activities can attract public Environment Environment attention on environmental protection as well as the welfare of disadvantaged groups. Low Carbon & Energy Greenhouse Gas These activities include: Sustainable Design Community Involvement 1. Activity for the teachers who are engaged in special education: There were 46 people Environmental Protection joined the event and 50 water cups sets were sponsored. Joyful Work Joyful Work Hear the Sounds of Residents and Put Resources Right. 2. Participated in the tree planting activity in Pudong New Area. There were 30 trees Employment Relationship All our major operating centers and manufacturing centers are involved in long-term local planted and the participants were 30 in total. Attracting & public welfare activities to make contribution to local societies. 3. Blood donation: There were 71 people joined the event. Nurturing Talent Occupational 4. Free clinic consultation at dormitories: There were 58 people joined the event. Health & Safety Employee Care PEGATRON Headquarters (HQ & TY) Social Care Social Care 【 】 Social Welfare 1. HQ has sponsored the dinners for impoverished students in adjacent schools since Community 2012. The meals are prepared by our food suppliers in cafeteria and supervised by a Involvement Appendix-Index Appendix-Index professional dietician to ensure the nutrition, balance and hygiene of the meals. GRI content index GRI content index 2. Waste recycling : We responded 422 World Earth Day Activity by recycling the waste United Nations Global United Nations Global electronic products brought by employees and handled them properly to protect the Compact Index Compact Index environment Sustainability Sustainability Development Goals Development Goals 3. Material donations: We donated 10 LCD displayers to social welfare institutions. of the United Nations of the United Nations Statement Statement 4. Invoice donation activity. Blood donation / Free clinic consultation 50 PEGATRON West China Operation Center (PCQ) Editorial Principles Editorial Principles 【 】 A Word from A Word from Our West China Operation Center continues to hold many local public welfare activities to the CEO the CEO respond the needs of disadvantaged groups in local community, include the activity of Identi cation & Identi cation & caring of elders in Dragon Boat Festival. There were 50 people joined the event. 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 Corporate Governance PEGATRON Czech Manufacturing Center (PCZ) Code of Conduct Code of Conduct 【 】 Information Security Information Security 1. Financial gifts for nursery school Risk Management Risk Management 2. Collection of PET bottle caps Regulatory Compliance Regulatory Compliance 3. Financial support of books for children Responsible Responsible Partnership Partnership Customer Service Sustainable Supply Chain PEGATRON Mexico Manufacturing Center (PMX) Sustainable Sustainable 【 】 Environment Environment 180 Employees of Pegatron participated in the donation of food and rst aid materials for Low Carbon & Energy the victims of earthquake in Mexico. Greenhouse Gas Sustainable Design Environmental From the beginning of the establishment, PEGATRON’s club started with happiness to Protection care for the disadvantaged groups, and dedicated to the environmental protection. The Joyful Work Joyful Work public welfare activities we participated in 2017 were listed as followings: Employment Relationship • Donation of books, projectors and used computers for Guan-Yu elementary school Attracting & Nurturing Talent in Changhua. Occupational • Second hand clothing donation activity for Fund for Children and Families in Taitung. Health & Safety Employee Care • Material donation activity for Swaziland (used shoes donation). Social Care Social Care Social Welfare • Used clothing donation for Maji Home of Fund for Children and Families. Community • Participation in “Happy Countryside Material Donation Activity” by Kuntai Cultural and Involvement Educational Foundation. Appendix-Index Appendix-Index GRI content index GRI content index United Nations Global United Nations Global Compact Index Compact Index Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement Navigate Appendix- Index the Future 52 GRI 102: 102-52 Reporting cycle 1 Editorial Principles Editorial Principles GRI Standards Index General 102-53 Contact point for questions regarding the report 1 A Word from A Word from Disclosures 102-54 Claims of reporting in accordance with the 1 the CEO the CEO 2016 Identi cation & Identi cation & GRI Standards Communication Communication General Disclosures 102-55 GRI content index 52 Social Responsibility █ Commitment GRI Standards Disclosure Page Omission 102-56 External assurance 1 Stakeholder Communication 102-1 Name of the organization 10 Material Issue Identi cation 102-2 Activities, brands, products, and services 10 Sustainability 102-3 Location of headquarters 10 Material topics Development Goals █ Company Pro le Company Pro le 102-4 Location of operations 11 About PEGATRON 102-5 Ownership and legal form 10 Economic- Economic performance Financial Performance 102-6 Markets served 10 GRI Standards Disclosure Page Omission Globalization Arrangement 102-7 Scale of the organization 10, 11 GRI 103: 103-1 Explanation of the material topic and its Boundary 10 Award List Management 102-8 Information on employees and other workers 36 10 Sustainable Sustainable Approach 103-2 The management approach and its components Management Management 102-9 Supply chain 10, 21 2016 103-3 Evaluation of the management approach 10 Corporate Governance Corporate Governance 102-10 Signi cant changes to the / There was no Code of Conduct Code of Conduct 201-1 Direct economic value generated and distributed 10 organization and its supply chain signi cant changes GRI 201: Information Security Information Security to the organization 201-2 Financial implications and other risks and 26 Economic Risk Management Risk Management and its supply opportunities due to climate change Regulatory Compliance Regulatory Compliance chain in 2017. Performance GRI 102: Responsible Responsible 2016 201-3 De ned bene t plan obligations and other 46 Partnership Partnership General 102-11 Precautionary Principle or approach 17 retirement plans Disclosures Customer Service 102-12 External initiatives 4 201-4 Financial assistance received from government 10 Sustainable 2016 Supply Chain 102-13 Membership of associations 4 Sustainable Sustainable 102-14 Statement from senior decision-maker 2 Economic- Market presence Environment Environment Low Carbon & Energy 102-16 Values, principles, standards, and norms of behavior 15 GRI Standards Disclosure Page Omission Greenhouse Gas 102-18 Governance structure 14 GRI 103: 103-1 Explanation of the material topic and its Boundary 38 Sustainable Design Management 102-40 List of stakeholder groups 5 103-2 The management approach and its components 38 Environmental Approach Protection 102-41 Collective bargaining agreements 37 2016 103-3 Evaluation of the management approach 38 Joyful Work Joyful Work 102-42 Identifying and selecting stakeholders 5 Employment GRI 202 202-2 Proportion of senior management hired from the Relationship 102-43 Approach to stakeholder engagement 5 Market local community 36 Attracting & 102-44 Key topics and concerns raised 5 Presence Nurturing Talent 2016 Occupational 102-45 Entities included in the consolidated 1 Health & Safety nancial statements Employee Care Economic- Ethics and integrity 102-46 De ning report content and topic Boundaries 7 Social Care Social Care GRI Standards Disclosure Page Omission Social Welfare 102-47 List of material topics 7 GRI 103: Community There is no 103-1 Explanation of the material topic and its Boundary 15 Involvement 102-48 Restatements of information / Management restatements of 103-2 The management approach and its components 15 Appendix-Index Appendix-Index information to Approach GRI content index previous reports. 2016 103-3 Evaluation of the management approach 15 United Nations Global 205-1 Operations assessed for risks related to corruption 15, 17 Compact Index 102-49 Changes in reporting 7 GRI 205 Anti Sustainability 102-50 Reporting period Corruption 205-3 Con rmed incidents of corruption and 1 15 Development Goals 2016 actions taken of the United Nations 102-51 Date of most recent report 1 Statement 53 Environmental- Materials GRI 307: 307-1 Non-compliance with environmental 32 Editorial Principles Editorial Principles Environmental laws and regulations GRI Standards Disclosure Page Omission A Word from A Word from Compliance the CEO the CEO GRI 103: 103-1 Explanation of the material topic and its Boundary 26 2016 Identi cation & Identi cation & Management Communication Communication 26 Approach 103-2 The management approach and its components Social Responsibility Social-Employment Commitment 2016 103-3 Evaluation of the management approach 26 GRI Standards Disclosure Page Omission Stakeholder 302-1 Energy consumption within the organization 26 Communication GRI 302: GRI 103: 302-3 Energy consumption outside of the organization 26 103-1 Explanation of the material topic and 36 Material Issue Energy 2016 Management Identi cation 302-4 Energy intensity its Boundary 26 Approach Sustainability 103-2 The management approach and its components 36 Development Goals 2016 Company Pro le Company Pro le Environmental- Emissions 103-3 Evaluation of the management approach 36 About PEGATRON GRI 401: 401-1 New employee hires and employee turnover 38 Financial Performance GRI Standards Disclosure Page Omission Employment Globalization GRI 103: 401-2 Bene ts provided to full-time employees that Arrangement 103-1 Explanation of the material topic and its Boundary 27 2016 46 Management are not provided to temporary or Award List Approach 103-2 The management approach and its components 27 part-time employees Sustainable Sustainable Management Management 2016 103-3 Evaluation of the management approach 27 Corporate Governance Corporate Governance 305-1 Direct (Scope 1) GHG emissions 27 Social-Labor management relations Code of Conduct Code of Conduct GRI 305: 305-2 Energy indirect (Scope 2) GHG emissions 27 GRI Standards Disclosure Page Omission Information Security Information Security Emissions 305-4 GHG emissions intensity GRI 103: Risk Management Risk Management 2016 27 103-1 Explanation of the material topic and its 45 Management Regulatory Compliance Regulatory Compliance 305-5 Reduction of GHG emissions 26 Boundary Approach Responsible Responsible 45 Partnership Partnership 2016 103-2 The management approach and its components Customer Service Environmental- E uents and waste 103-3 Evaluation of the management approach 45 Sustainable Supply Chain GRI Standards Disclosure Page Omission GRI 402: Labor 402-1 Minimum notice periods regarding operational Sustainable Sustainable Management changes 37 Environment Environment 103-1 Explanation of the material topic and 32, 33 GRI 103: Relations2016 Low Carbon & Energy its Boundary Management Greenhouse Gas 103-2 The management approach and Sustainable Design Approach 32, 33 Social-Occupational health and safety its components Environmental 2016 GRI Standards Disclosure Page Omission Protection 103-3 Evaluation of the management approach 32, 33 Joyful Work Joyful Work GRI 103: 306-1 Water discharge by quality and destination 33 103-1 Explanation of the material topic and 42 Employment Management Relationship its Boundary GRI 306: 306-2 Waste by type and disposal method 32 Approach Attracting & 103-2 The management approach and its components 42 Nurturing Talent E uents and 306-3 Signi cant spills No spill 2016 Occupational Waste 2016 event occurred. 103-3 Evaluation of the management approach 42 Health & Safety 306-5 Water bodies a ected by water discharges No spill 403-1 Workers representation in formal joint Employee Care and/or runo event occurred. GRI 403: management–worker health and 42 Social Care Social Care Occupational safety committees Social Welfare Health and Environmental - Environmental compliance 403-2 Types of injury and rates of injury, occupational Community Safety2016 42 Involvement diseases, lost days, and absenteeism, and Appendix-Index Appendix-Index GRI Standards Disclosure Page Omission number of work-related fatalities GRI content index GRI 103: 103-1 Explanation of the material topic and 32 United Nations Global Management Compact Index its Boundary Approach Sustainability 103-2 The management approach and its components 32 Development Goals 2016 of the United Nations 103-3 Evaluation of the management approach 32 Statement 54 Social-Training and education Editorial Principles Editorial Principles United Nations Global Compact Index A Word from A Word from GRI Standards Disclosure Page Omission the CEO the CEO GRI 103: 103-1 Explanation of the material topic and its Boundary 39 Identi cation & Identi cation & Management Communication Communication 103-2 The management approach and its components 39 Category Principle Page No. Social Responsibility Approach Commitment 2016 103-3 Evaluation of the management approach 39 Businesses should support and respect the protection of internationally 37 Stakeholder 39 proclaimed human rights. Communication GRI 404: 404-1 Average hours of training per year per employee Human Training and Rights Businesses should make sure that they are not complicit in human Material Issue 404-2 Programs for upgrading employee skills and 37 Identi cation Education 2016 38 rights abuses. transition assistance programs Sustainability Businesses should uphold the freedom of association and the e ective Development Goals 37 Company Pro le Company Pro le recognition of the right to collective bargaining. Social- Socioeconomic compliance About PEGATRON Businesses should uphold the elimination of all forms of forced and Labor 37 Financial Performance GRI Standards Disclosure Page Omission compulsory labor. Globalization Businesses should uphold the e ective abolition of child labor. 37 Arrangement GRI 103: 103-1 Explanation of the material topic and its Boundary 18 Award List Management Businesses should uphold the elimination of discrimination in respect of 103-2 The management approach and its components 18 37 Sustainable Sustainable Approach employment and occupation. Management Management 2016 103-3 Evaluation of the management approach 18 Corporate Governance Corporate Governance Businesses should support a precautionary approach to 28 Code of Conduct Code of Conduct GRI 419: 419-1 Non-compliance with laws and regulations in the environmental challenges. Information Security Information Security Socioeconomic social and economic area 18 Businesses should undertake initiatives to promote greater Environment Risk Management Risk Management Compliance 2016 environmental responsibility. 32 Regulatory Compliance Regulatory Compliance Businesses should encourage the development and di usion of Responsible Responsible Corporate government 14, 15 28 Partnership Partnership environmentally friendly technologies. Customer Service Anti- Businesses should work against corruption in all its forms, including 15 Sustainable Risk management 17 Corruption extortion and bribery. Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Greenhouse Gas Sustainable Design Environmental Sustainability Development Goals (SDGs) of the United Nations Protection Joyful Work Joyful Work Employment Relationship Sustainability Sustainability Development Goals Attracting & Development Page No. Omission Nurturing Talent Goals (SDGs) Goals Targets Actions Occupational Health & Safety Implement gender equality policy. 37 Employee Care E Maintain the Equality Eliminate discrimination of gender.
Social Care Social Care of Society Realize Gender Equality in Workplace. Provide multiple grievance channels. 45 Social Welfare (Equality) Build a friendly workplace. Community Promotion Maternity Protection. 37, 42 Involvement Appendix-Index Appendix-Index Improve the e ciency of energy use. Build energy monitoring system. GRI content index M Bene t the 26 United Nations Global Environment towards Compact Index Use Current Energy with a Greener Way Mutualism Reduce the cost of energy. Implement energy management Sustainability 26 Development Goals (Mutualism) and reduction projects. of the United Nations Statement 55
Sustainability Sustainability Development Goals Editorial Principles Editorial Principles Development Page No. Omission A Word from A Word from Goals (SDGs) Goals Targets Actions the CEO the CEO Identi cation & Identi cation & Communication Communication Encourage Employment localization. 36 Boost the Growth of Create employment, cultivate and Social Responsibility G Economy Commitment retain the talents. Perform employee individual 38 Stakeholder (Growth) development plan (IDP). Elevate the Economic Performance Communication 45 Material Issue and Workplace. Protect labor rights. Provide multiple grievance channels. Identi cation Maintain the Equality Perform voluntary employment policy. 38 Sustainability E of Society Development Goals Prevent involuntary labors. Perform no child labor policy. Company Pro le Company Pro le (Equality) 37 About PEGATRON Financial Performance M Bene t the Environment Sustainable design. Conduct HSF management 29 Globalization towards Mutualism Arrangement (Mutualism) Build pollution prevention control facility Award List Prevention of pollutions or devices and conduct the monitoring 32, 33 Sustainable Sustainable Engage in Responsible Consumption Management Management and Production. Maintain the Equality Due diligence investigation of Corporate Governance Corporate Governance Responsible sourcing 23 E of Society conict minerals Code of Conduct Code of Conduct Information Security Information Security (Equality) Sustainable supply chain. Conduct supply chain management 22 Risk Management Risk Management Regulatory Compliance Regulatory Compliance Conduct greenhouse gas emissions Bene t the Environment Evaluate and Mitigate the Impact on Reduce the risks of climate change on the 26, 27 Responsible Responsible M towards Mutualism Climate Change. operations to each site. reduction projects. Partnership Partnership Customer Service (Mutualism) Enhance the energy e ciency. 26 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 Index Sustainability Development Goals of the United Nations Statement 56
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 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 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 Index Sustainability Development Goals of the United Nations 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 appendix of this report. For nancial data, it is referred to the nancial statement certi ed by quali ed accountants.
If you have any query or comment about this CSR report, please feel free to contact us: PEGATRON Corporation Corporate Quality Policy Center | Olivia Chen E-mail: [email protected] Address: No. 76, Ligong St., Beitou, Taipei 112, Taiwan O cial website: http://www.pegatroncorp.com/