2018 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 Standard Index 10. Financial Performance 26. Low Carbon & Energy 54. United Nations Global 11. Globalization Arrangement 27. Greenhouse Gas Compact 12. Award List 28. Sustainable Design 54. Sustainability Development Goals (SDGs) of 31. 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 corporate social responsibility (CSR) reports on an annual basis Environmental Environmental since 2009. Each report includes our economic, social, and environmental performance of This report is prepared in accordance with the Core option of GRI Standards Protection Protection the previous year. Our eleventh CSR report issued in 2019 continuously discloses our issued by Global Sustainability Standards Board (GSSB). In order to increase Joyful Work Joyful Work commitments, management policies, strategic goals and performance results in terms of the transparency and reliability of the report, the content was veri ed by an Employment Employment independent third party, BSI Taiwan, based on AA1000 AS (2008) and Relationship Relationship each sustainability topic in 2018. This CSR report is issued in traditional Chinese, simpli ed complied with core option level of GRI Standards. The Veri cation Statement Attracting & Attracting & Chinese and English, and available on PEGATRON’s website for stakeholders’ reference. Nurturing Talent Nurturing Talent The previous report was released in June, 2018. is attached as appendix of this report. For nancial data, refer to the nancial Occupational Occupational statements certi ed by quali ed accountants. Health & Safety Health & Safety This CSR report is written by CSR task force team members and covers the period from Employee Care Employee Care January 1 to December 31, 2018. PEGATRON referred to in this report is composed of Social Care Social Care PEGATRON Corporation and its core businesses, includes Headquarters (HQ) and Taoyuan Social Welfare Social Welfare 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 Czech and Mexico manufacturing centers in Europe and America respectively. PEGATRON Corporation GRI content index GRI Standard Index United Nations Global United Nations In order to meet the requirements for IFRS (International Financial Reporting Standards) Corporate Quality Policy Center | Sharon Hsieh | Burdey Cheng Compact Index Global Compact Consolidated Financial Statements in Taiwan, subsidiaries are included in the nancial E-mail: [email protected]│[email protected] Sustainability Sustainability performance, but the service centers and other listed subsidiaries are excluded from the Address: No. 76, Ligong St., Beitou District, Taipei City 11261, Taiwan Development Goals Development Goals scope of this report. The entities included in this report contribute to more than 80% of of the United Nations of the United Nations 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 Face up to the Challenges in Social Responsibility Social Responsibility Commitment Commitment Stakeholder Stakeholder Communication Communication Steady Steps Material Issue Material Issue Identi cation Identi cation Sustainability Sustainability Development Goals Development Goals Developed PEGATRON’s own SDGs as its goals in the Company Pro le Company Pro le following three dimensions: boosting the growth of About PEGATRON About PEGATRON Financial Performance Financial Performance economy (Growth), maintaining the equality of society Globalization Globalization Arrangement Arrangement (Equality) and bene ting the environment towards Award List Award List Sustainable Sustainable mutualism (Mutualism). 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 2018 with multiple in a more sustainable way. PEGATRON supports gender equality at workplace Environmental Environmental challenges and risks in the industry, PEGATRON strived for growth by and work closely with our partners to promote labor rights in the industry value Protection Protection Joyful Work Joyful Work broadening its business scope with existing customers and continuously chain. As a corporate citizen and a member of the RBA (Responsible Business Employment Employment penetrating into new products. In addition to enhancing nancial performance, Alliance), we actively participate in the initiatives held by the RBA with our Relationship Relationship Attracting & Attracting & we are also committed to incorporating the philosophy of sustainability into partners in the supply chain and endeavor to uphold its value. We also Nurturing Talent Nurturing Talent daily business operation and implementing in the management system. encourage our suppliers to join RBA Validated Audit Process (VAP) to evaluate Occupational Occupational Health & Safety Health & Safety their compliance and the performance on sustainability via external audits by Employee Care Employee Care As one of the major players in global technology supply chain, PEGATRON the independent 3rd parties. Social Care Social Care proactively responds to the Sustainability Development Goals (SDGs) set by Social Welfare Social Welfare United Nations, and further developed PEGATRON’s own SDGs as its goals in the Looking forward 2019, we will uphold corporate value, provide variety of Community Community Involvement Involvement following three dimensions: boosting the growth of economy (Growth), services to our customers and build stronger partnetship in supply chain. We Appendix-Index Appendix-Index maintaining the equality of society (Equality) and bene ting the environment will continue enhancing performance on sustainable development while GRI content index GRI Standard Index United Nations Global United Nations towards mutualism (Mutualism). pursuing operational avhievement by means of e ective communication and Compact Index Global Compact mutual learning. Sustainability Sustainability Development Goals Development Goals PEGATRON continues to implement energy management through building up of the United Nations of the United Nations in-house management system to ensure allocation and utilization of 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 year, but also performs internal audits, external audits and corrective actions, as well as Editorial Principles Editorial Principles Social Responsibility Commitment reviews CSR performances by PureCSR management review meetings to ensure the A Word from A Word from e ciency of PureCSR management system. We have introduced the environmental the CEO the CEO Keep in line with social responsibility as an excellent management system, occupational safety and health management system, quality & Identi cation & Identi cation & hazardous substances process management system, greenhouse gas inventory and Communication Communication corporate citizen. energy management system. The certi cation and veri cation statements veri ed by a Social Responsibility third party are made available on our website. Commitment PEGATRON’s corporate social responsibility activities are planned, operated and Stakeholder implemented by PureCSR (PEGATRON‘s Corporate Social Responsibility) Steering Communication Committee，which is led by CEO with the authorization of its board of directors. The Material Issue committee members consist of representatives from Corporate Quality Policy Center PureCSR policy Identi cation (CQPC), Human Resource & Administration Center (HR & ADM), Procurement Center, █ Sustainability Customer Service Business Unit (CSBU), Finance & Accounting Center, Legal & IPR Development Goals 1. Abide by all environmental protection, 4. Satisfy customer requirements and become (Intellectual Property Right) Center, Audit O ce, Business Units and CSR representatives Company Pro le Company Pro le labor, safety and health laws. an entirely green enterprise. from all our Operation Centers and Manufacturing Centers. All members identify stakeholders About PEGATRON About PEGATRON 2. Conserve all natural resources, and 5. Enable company-wide promotion of corporate according to their duties and respond to stakeholders’ concerns in daily operations. Financial Performance Financial Performance actively prevent pollution. responsibility in a social environment. Cross-unit issues are discussed in PureCSR Steering Committee meeting so as to reach a Globalization Globalization 3. Reduce environmental impact and 6. Summon all employees to participate in Arrangement Arrangement consensus among related units. CSR implementation status is periodically reported to the safety risk. the program and continuously improve it. Award List Award List CEO and submitted to the Company’s board of directors for resolutions every year. Sustainable Sustainable Management Management PureCSR Steering Committee Organization Chart Corporate Governance Corporate Governance : PEGATRON also commits to implement the following directives with expression of Code of Conduct Code of Conduct our 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 Regulatory Compliance Regulatory Compliance to meet global environmental protection, labor rights and zero-hazard activity. Responsible Responsible HR & Administration Partnership Partnership 02. Educate entire sta s, making them aware to protect environment, respect the dignity Customer Service Customer Service Finance of life, cherish natural resources, ensure safety and promote physical and mental CSR Management health of everyone. Sustainable Sustainable Task Force Team Supply Chain Supply Chain Representative Legal & IPC 03. Achieve the goal of e ective resource consumption through reusing and recycling of Sustainable Sustainable resources as well as supervise waste management to prevent from being reused or re-sold. Environment Environment Audit Low Carbon & Energy Low Carbon & Energy 04. Enhance the monitoring and reducing of environmental pollutant and risk management. Greenhouse Gas Greenhouse Gas Meanwhile, improve the e ciency of resource utilization to reduce the impacts on Sustainable Design Sustainable Design Business units Procurement Manufacturing Service the environment as well as disclose the environmental performance regularly. Environmental Environmental 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 work environment. Relationship Relationship PEGATRON publicly discloses the practice and performance of corporate social 06. Establish a management system for corporate social responsibility to improve the Attracting & Attracting & responsibility by publishing annual CSR report, and takes it as a communication e ciency for environmental protection, ethics, labor rights, safety and health. Nurturing Talent Nurturing Talent platform for stakeholders. We can get more understanding of their needs and requests Occupational Occupational through a two-way communication. Meanwhile, CSR report is regarded as a tool to 07. Implement greenhouse gas inventory and reduction program to practice greenhouse Health & Safety Health & Safety review our strategy of sustainable management. gas reduction to meet international trends in environmental protection and Employee Care Employee Care customers’ requirements. Social Care Social Care PEGATRON established the Corporate Social Responsibility Practice Principles in 2015 and Social Welfare Social Welfare 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 rates Community Community determination on the practice of corporate social responsibility. on them in di erent stages of design, purchase and use to achieve the goal of Involvement Involvement continuous improvement, as well as promote the overall environmental performance. Appendix-Index Appendix-Index Corporate Social Responsibility Practice Principles: 09. Openly pledge the company’s commitment in protecting the environment and labor GRI content index GRI Standard Index http://www.pegatroncorp.com/investorRelation/majorInternalPolicies/lang/en_US rights and reducing occupational hazards as well as regularly disclose corporate social United Nations Global United Nations Compact Index Global Compact responsibility information to enhance the trust and communication with stakeholders. Sustainability Sustainability To e ectively manage CSR related issues, PEGATRON has established the PureCSR 10. Abide by ethics code of conduct, including business integrity, no improper advantage, Development Goals Development Goals policy as well as the CSR and safety & health management system (PureCSR of the United Nations of the United Nations not to bribe or take bribes, and to protect the personnel who raise any concerns or management system). The Company not only sets up CSR objectives and targets every Statement Statement inform against illegal acts from being fear of retaliation.
11. Emphasize on equal opportunities as well as prohibit any kinds of harassment and discrimination or inhumane treatment, and establish two-way communication channels to maintain good relationship between employees and employers. 12. Continually address the con ict minerals issues and exercise due diligence on the sources of metal raw materials to conduct responsible procurement for metals. 13. Do our best to summon our suppliers to comply with related corporate social responsibility regulations and RBA (formerly the EICC) Code of Conduct to sustainably grow together with our suppliers. 01. Abide by environmental and labor laws, regulations and other international requirements to meet global environmental protection, labor rights and zero-hazard activity. 02. Educate entire sta s, making them aware to protect environment, respect the dignity of life, cherish natural resources, ensure safety and promote physical and mental health of everyone. 03. Achieve the goal of e ective resource consumption through reusing and recycling of resources as well as supervise waste management to prevent from being reused or re-sold. 04. Enhance the monitoring and reducing of environmental pollutant and risk management. Meanwhile, improve the e ciency of resource utilization to reduce the impacts on the environment as well as disclose the environmental performance regularly. 05. Promote the independence and reliability of the self-management so as to optimize the quality of occupational hazard control, and reduce occupational risks to build a satis ed work environment. 06. Establish a management system for corporate social responsibility to improve the e ciency for environmental protection, ethics, labor rights, safety and health. 07. Implement greenhouse gas inventory and reduction program to practice greenhouse gas reduction to meet international trends in environmental protection and customers’ requirements. 08. Implement energy and natural resource management to optimize the utilization rates on them in di erent stages of design, purchase and use to achieve the goal of continuous improvement, as well as promote the overall environmental performance. 09. Openly pledge the company’s commitment in protecting the environment and labor rights and reducing occupational hazards as well as regularly disclose corporate social responsibility information to enhance the trust and communication with stakeholders. 10. Abide by ethics code of conduct, including business integrity, no improper advantage, not to bribe or take bribes, and to protect the personnel who raise any concerns or inform against illegal acts from being fear of retaliation.
05 11. Emphasize on equal opportunities as well as prohibit any kinds of harassment and PEGATRON’s stakeholder Editorial Principles Editorial Principles discrimination or inhumane treatment, and establish two-way communication ： A Word from A Word from channels to maintain good relationship between employees and employers. the CEO the CEO Identi cation & Identi cation & 12. Continually address the con ict minerals issues and exercise due diligence on the Customer Communication Communication sources of metal raw materials to conduct responsible procurement for metals. 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 Communication sustainably grow together with our suppliers. Media Investor Material Issue Identi cation Sustainability As a member of RBA (Responsible Development Goals Business Alliance), we continuously Company Pro le Company Pro le participate in relevant activities Government Supplier About PEGATRON About PEGATRON and have discussions with our Financial Performance Financial Performance peers on the issues and trends of business sustainability. Also, we actively respond to Community Competitors Globalization Globalization Arrangement Arrangement several corporate responsibility projects and initiatives, including responsible Award List Award List minerals and environmental sustainability. In addition to be the member of RBA, PEGATRON is also one of the members of the Taipei Computer Association (TCA). Sustainable Sustainable All issues that stakeholders pay attention to and communication channels are listed in Management Management Our chairman, Tzu-Hsien, Tung, is its chairman of the Board. As a world-class industry the following table: Corporate Governance Corporate Governance association, TCA continues to be an industry promoter on ICT (Information and Code of Conduct Code of Conduct Communication Technology), and works together with more than 4,000 members Stakeholder Stakeholder Issues of Concern Communication Channel Information Security Information Security to create another business peak with huge business opportunities in Taiwan. Risk Management Risk Management Wage Level and Local Hiring Supplier Conferences Regulatory Compliance Regulatory Compliance Management System to Avoid Responsible Responsible Customer Audits Partnership Partnership Forced Labor Customer Service Customer Service Environmental Regulatory Sustainable Sustainable Regular Meetings Supply Chain Supply Chain Stakeholder Communication Compliance Sustainable Sustainable Regulatory Compliance on Labor Environment Environment RBA-Online Low Carbon & Energy Low Carbon & Energy 9 major stakeholders are identi ed according to the degree of Conditions Greenhouse Gas Greenhouse Gas interaction in uences. Employment Protection Customer Websites/Platforms Sustainable Design Sustainable Design Customer Environmental Environmental Major stakeholders include employees, customers, investors, government agencies, Implementation of Occupational Protection Protection suppliers, competitors, media, NGOs (non-government organizations) and Health & Safety Joyful Work Joyful Work communities. We communicate with our stakeholders through various communication Identi cation, Handling of and Employment Employment channels and identify their needs and requirements to keep good relationships with Relationship Relationship them. PEGATRON sets a speci c webpage with an external communication mailbox Training on Anti-Corruption Attracting & Attracting & ([email protected]) maintained by the dedicated personnel for stakeholders Nurturing Talent Nurturing Talent Supplier Management to Avoid on our company’s website, as one of communication channel with stakeholders. We Child Labor Occupational Occupational understand reasonable expectations and needs of our stakeholders by proper Health & Safety Health & Safety Environmental Protection Employee Care Employee Care communications, and respond to these major CSR issues concerned. Social Care Social Care Regulatory Compliance on CSR Social Welfare Social Welfare Community Community Regulatory Compliance on Labor Involvement Involvement Conditions Regular Meetings Appendix-Index Appendix-Index Wage Levels and Local Hiring Internal Website GRI content index GRI Standard Index United Nations Global United Nations Wages, Bene ts and Employee Internal Publications Compact Index Global Compact Performance Review Sustainability Sustainability Development Goals Development Goals Operational and Financial of the United Nations of the United Nations Performance Announcements Statement Statement 06 Identi cation and Handling on Customer Complaints and Addressing Grievance Box Editorial Principles Editorial Principles Anti-Corruption Process Regarding Privacy Violations A Word from A Word from CSR Communications on Labor Supplier Management on the CEO the CEO Conditions Co ee Talks Environmental Identi cation & Identi cation & Communication Communication Employment and Retention Hotlines Supplier Management on Labor Social Responsibility Management System to Avoid Conditions Commitment Labor-Management Meetings Forced Labor Business Ethics and Business Stakeholder Integrity Communication Environmental Performance and Material Issue Monthly Business Reports Identi cation Investment Wage Level and Local Hiring Public Hearings on Policy Sustainability Operational and Financial Shareholders' Meetings Management System to Avoid Development Goals Performance Questionnaires & Interviews Company Pro le Company Pro le Forced Labor Investor Conferences About PEGATRON About PEGATRON Employment and Retention Regulatory Compliance on Projects and Initiatives Financial Performance Financial Performance Investor Negative Impact on Local Environment Annual Reports Government Globalization Globalization Communities Regulatory Compliance on Arrangement Arrangement Conferences For Product Life Cycles, Health and Market Observation Labor Conditions Award List Award List Sustainable Sustainable Safety Improvement, and Addressing Post System (MOPS) Environmental Protection Management Management of Regulatory Non-compliance Issues. Regulatory Compliance on CSR Corporate Governance Corporate Governance Regulatory Compliance on Labor Code of Conduct Code of Conduct Conditions Wage Level and Local Hiring Press Conferences Information Security Information Security Operational and Financial Management System to Avoid Risk Management Risk Management Supplier Conferences Press Releases Regulatory Compliance Regulatory Compliance Performance Forced Labor Responsible Responsible Supplier Management on Labor Media Regulatory Compliance on Labor External Communication Partnership Partnership Supplier Audits Conditions Conditions Mailbox Customer Service Customer Service Business Ethics and Business Sustainable Sustainable Supplier Management on Supplier Relationship Supply Chain Supply Chain Supplier Environment Management Integrity Sustainable Sustainable Operational and Financial Environment Environment External Communication Raw Materials Purchase Performance Low Carbon & Energy Low Carbon & Energy Mailbox Greenhouse Gas Greenhouse Gas Environmental Impact Evaluation and RBA-Online Energy Inventory and Sustainable Design Sustainable Design Management, Packaging Materials Conservation Participate Organizations Environmental Environmental and Recycled Materials Protection Protection Regulatory Compliance on Conferences Joyful Work Joyful Work Local Purchasing Percentage Environment Employment Employment Operational and Financial External Communication Relationship Relationship External Communication Environmental Protection Performance Mailbox Attracting & Attracting & Mailbox NGO Nurturing Talent Nurturing Talent Regulatory Compliance on CSR Implementation Occupational Occupational Health & Safety Health & Safety Environment Environmental Performance and Employee Care Employee Care Negative Impact on Local Investment Community Social Care Social Care Communities Regulatory Compliance on Labor Social Welfare Social Welfare Violations In uencing the Rights Conditions Community Community of Local Residents Involvement Involvement Appendix-Index Appendix-Index Environmental Impact of GRI content index GRI Standard Index Transporting United Nations Global United Nations Compact Index Global Compact Operational and Financial Conferences Sustainability Sustainability Performance Development Goals Development Goals of the United Nations of the United Nations Competitor Environmental Performance and Statement Statement Investment 07 The identi cation result of 2018 Sustainability Issues: Editorial Principles Editorial Principles Material Issue Identi cation A Word from A Word from the CEO the CEO S3 and decisions In uence on stakeholder assessments Identi cation & Identi cation & 16 major material issues are identi ed through comprehensive S1 E7 Communication Communication consideration of the impacts on business operations as well as S9 G8 E6 Social Responsibility G1 E5 Commitment the concerns of stakeholders. G2 S4 G7 E9 Stakeholder S2 In order to enhance the communication e ciency with stakeholders, we not only G9 Communication E2 collected suggestions from the employees who could directly contact stakeholders in S14 E8 S20 G5 Material Issue S8 Identi cation their daily operations, but also investigated internally and analyzed the concerns of S16 Sustainability di erent stakeholders through indirect and direct channels. E3 E3 S19 Development Goals S5 G3 We identify the issues stakeholders are concerned about according to the four S17 S7 Company Pro le Company Pro le S6 G6 About PEGATRON About PEGATRON principles of the Global Reporting Initiative, which include materiality, stakeholder inclusiveness, sustainability context, and completeness through a systematic approach, S12 S13 Financial Performance Financial Performance G4 S18 Globalization Globalization and provide the information through CSR Report accordingly to ensure stakeholders to E4 S10 E10 Arrangement Arrangement receive the information they need. There are 39 sustainability issues included in the S15 Award List Award List materiality assessment according to the aspects of GRI Standards, including economic, S11 Signi cance of economic, environmental, and social impacts Sustainable Sustainable environmental and social topics, as well as concerns from internal and external parties. Management Management Corporate Governance Corporate Governance The assessment process is listed as below. E4 Biodiversity S7 Freedom of association and Code of Conduct Code of Conduct Economic collective bargaining Information Security Information Security G1 Economic performance E5 Emissions S8 Child labor Risk Management Risk Management 1 Collect 2 Survey 3 Analyze 4 Determine G2 Market presence E6 E uents and waste S9 Forced or compulsory labor Regulatory Compliance Regulatory Compliance G3 Indirect economic E7 Environmental compliance Responsible Responsible impacts E8 Supplier environmental S10 Security practices Partnership Partnership 1. Collect the 2. Survey the 3. Analyze the 4. Determine G4 Procurement practices assessment S11 Rights of indigenous peoples Customer Service Customer Service sustainable issues issues the material G5 Anti-corruption E9 Green product S12 Human rights assessment Sustainable Sustainable issues issues G6 Anti-competitive behavior E10 Climate change S13 Local communities Supply Chain Supply Chain G7 Governance S14 Supplier social assessment Sustainable Sustainable ● Identify the ● Collect ● Sequence ● Set threshold Social Environment Environment G8 Ethics and integrity S15 Public policy stakeholders concerned based on ( rst S1 Employment Low Carbon & Energy Low Carbon & Energy G9 Risk Management S16 Customer health and safety Inventory issues by degrees of quadrant) to S2 Labor/management relations Greenhouse Gas Greenhouse Gas ● questionnaires, concerned identify 2018 S17 Marketing and labelling sustainable Environmental S3 Occupational health and safety Sustainable Design Sustainable Design daily issues and material issues S18 Customer privacy issues and E1 Materials S4 Training and education Environmental Environmental communication impact levels of and con rm S19 Socioeconomic compliance Protection Protection summarize E2 Energy S5 Diversity and equal opportunity records (include issues on their S20 Con ict minerals Joyful Work Joyful Work them based on S6 Non discrimination customer economy, boundaries E3 Water Employment Employment the GRI Relationship Relationship standards requirements), society and Attracting & Attracting & media news environment Nurturing Talent Nurturing Talent and so on Occupational Occupational Health & Safety Health & Safety Employee Care Employee Care Based on the result of materiality analysis, the CSR task force team identi es the material Social Care Social Care issues in 2018 CSR Report. After identifying material issues, we de ne the scope Social Welfare Social Welfare covered by related aspects to ensure information transparency and suitable boundaries. Community Community Involvement Involvement In addition to the response and disclosure in the corporate social responsibility report, Appendix-Index Appendix-Index PEGATRON also focuses on using the material issues to communicate with stakeholders GRI content index GRI Standard Index and takes them as material issues for continuous improvement. We use the concept of United Nations Global United Nations PDCA (Plan–Do–Check–Act) and periodically assess the e ectiveness of our management. Compact Index Global Compact Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 08 The boundaries of material issues and SDGs: Editorial Principles Editorial Principles Value Chain Other Stakeholders A Word from A Word from the CEO the CEO Category Material Issue Chapter Investor Govern- Com- Media/ NGO/ SDGs Supplier HQ & Site Customer ment munity Competitor Identi cation & Identi cation & Communication Communication Economic performance Financial Performance ◎ ◎△ ◎ ◎ Social Responsibility Market presence Labor Relationship Commitment ◎ ◎△ ◎ ◎ Economic Anti-corruption Code of Conduct Stakeholder Governance Corporate Governance ◎△ ◎△ ◎△ Communication Ethics and integrity Code of Conduct ◎△ ◎ ◎ Material Issue Identi cation Risk management Risk Management ◎△ ◎△ ◎△ Sustainability Energy Low Carbon & Energy ◎△ ◎△ ◎△ ◎ Development Goals Emissions Greenhouse Gas ◎△ Company Pro le Company Pro le Environment Euents and waste Environmental Protection ◎△ ◎ About PEGATRON About PEGATRON Environmental compliance Environmental Protection ◎△ ◎ ◎ Financial Performance Financial Performance Green product Sustainable Design ◎△ ◎△ ◎ Globalization Globalization ◎△ ◎△ ◎△ Arrangement Arrangement Employment Labor Relationship ◎△ ◎△ ◎ Award List Award List Labor/ management relations Employee Care ◎△ Sustainable Sustainable Social Occupational health and safety Occupational Health &Safety Management Management Attracting and Nurturing Talent ◎△ ◎△ ◎ Corporate Governance Corporate Governance Training and education Con ict minerals Sustainable Supply Chain ◎△ ◎△ Code of Conduct Code of Conduct ◎△ ◎△ Information Security Information Security Remark 1: ◎ Issue with direct impacts; △ Issue disclosed in this report. (Only consider the issue with direct impacts. Others are not presented.) Risk Management Risk Management Remark 2: The economic performance of subsidiaries is disclosed in this report because of the consolidated financial report. Regulatory Compliance Regulatory Compliance Responsible Responsible Partnership Partnership Customer Service Customer Service Sustainability Development Goals (SDGs) Sustainable Sustainable Supply Chain Supply Chain natural resources, we elevate the utilization e ciency of energy and resources, and Sustainable Sustainable Growth, Equality and Mutualism Environment Environment conduct design in an eco-friendly manner and production in a greener way. We continue Low Carbon & Energy Low Carbon & Energy The United Nations published Sustainability Development Goals (SDGs) in 2014 which to reduce the negative impacts caused by our operations and activities on the Greenhouse Gas Greenhouse Gas includes 17 Goals and 169 Targets. As a corporate citizen and one of the key players on environment and optimize the utilization e ciency of energy and resources through Sustainable Design Sustainable Design global supply chain of technology industry, PEGATRON proactively responds to the continuous improvement and the innovative technology on manufacturing. Environmental Environmental SDGs in 3 directions on sustainability, which are boosting the growth of economy Protection Protection (Growth), maintaining the equality of society (Equality) and bene ting the environment Joyful Work Joyful Work Gender Realize Gender Equality in Workplace towards mutualism (Mutualism). Equality Eliminate discrimination of gender and Employment Employment build a friendly workplace. Relationship Relationship Boosting the Growth of Economy (Growth) Attracting & Attracting & PEGATRON continues to accumulate its inner capacity on R&D and technology to develop Nurturing Talent Nurturing Talent new products to respond to the market trend, as well as extend its business towards Sustainable Use Current Energy with a Greener Way Occupational Occupational Energy Improve the e ciency of energy use and Health & Safety Health & Safety di erent elds. Through experience inheritance as well as talent and technological reduce the cost of energy. Employee Care Employee Care accumulation, we not only focus on increasing revenue, but also create local employment opportunities to boom economic development and cultivate local talents. Economic Enhance the Economic Social Care Social Care Growth& Performance and Workplace Social Welfare Social Welfare Maintaining the Equality of Society (Equality) Decent work Create employment opportunities Community Community and protect labor rights. Involvement Involvement PEGATRON supports gender equality in workplace by taking practical actions. Every Appendix-Index Appendix-Index gender can have equal opportunities on employment, promotion and development. To Responsible Engage in Responsible respect international labor rights, involuntary or forced labors are forbidden. We Production Consumption and Production GRI content index GRI Standard Index Responsible sourcing, sustainable United Nations Global United Nations cooperate with our partners via constant communication to learn from each other, so as design and pollution prevention. Compact Index Global Compact to jointly promote labor rights in the industry value chain. Sustainability Sustainability Climate Evaluate and Mitigate the Impact on Development Goals Development Goals Bene ting the Environment towards Mutualism (Mutualism) Action Climate Change of the United Nations of the United Nations PEGATRON engages in economic development, meanwhile takes environmental Reduce the risks of climate change on Statement Statement protection into account. To respond to the issues on climate change and the shortage of the operations at each site. Navigate Company Pro le the Create a new style based on the competence Future in both design and manufacturing. 10 Our Vision About PEGATRON █ Editorial Principles Editorial Principles We hold the belief that technology has the potential to transform imaginations into A Word from A Word from the CEO the CEO opportunities and challenges into cornerstones for future success. With our mission of Identi cation & Identi cation & “Joyful Work, Happy Life” is our business philosophy, as well as “navigate the future”, Pegatron seeks to pursue the goal of becoming an industry leader Communication Communication our direction towards economic growth and sustainable development. that satis es people throughout the world with its unique design innovations and Social Responsibility exceptional services. Commitment Founded in 2008, PEGATRON is a worldwide leader providing DMS (Design, Stakeholder Manufacturing and Service). PEGATRON o ers assembly service to customers on a wide Communication range of electronic products in computer products, communication products and Management Philosophy Material Issue █ Identi cation consumer electronics, including Notebook PCs, DeskTop PCs, Motherboards (MBs), VGA PEGATRON expects all of our employees to work sincerely and joyfully so that to inspire Sustainability Cards, Cable Modems, Set-Top Boxes, Smartphones, Game Consoles, Tablet PCs, IoT Development Goals Devices, Automotive Electronics, Smart Home Devices, etc. In addition to providing the potential of each one of them. Through the tight relationship among teams with Company Pro le Company Pro le assembly service for brand customers, the Company also engages in development, di erent functions, PEGATRON employees are able to create truly market-driven products About PEGATRON design, manufacturing and maintenance of peripherals and components of the based on maximizing the bene t of customers. Ultimately, customers can experience Financial Performance above-mentioned products. As the devices mentioned above require a combination of better lives with PEGATRON’s design and innovation. Globalization hardware and software capabilities to integrate with technologies in computing, Arrangement communication, video processing, audio recognition, etc. PEGATRON, with a solid Award List foundation in research and development, has the competitive edge to provide Sustainable Sustainable integrated services to brand customers. With ourishing IoT in the past few years, Management Management PEGATRON is devoted to enhancing its core competency and applying core Financial Performance Corporate Governance Corporate Governance technologies into di erent areas such as smart home products and automobile Code of Conduct Code of Conduct electronics. In order to prepare itself for the next two to three years of growth, Pegatron Information Security Information Security Continuously make breakthrough and go further with steady steps. further expanded its manufacturing capacity in 2017. After the expansion, the Company Risk Management Risk Management would push the growth of the existing production lines, and improve utilization rate. The consolidated revenue of PEGATRON reached NT$1,340 billion in 2018, 12% up from Regulatory Compliance Regulatory Compliance Meanwhile, it will strive to develop new product lines and also expand its business by that of 2017, mainly resulting from the growth in mobile device demand. In 2018, Responsible Responsible Partnership Partnership increasing the cooperation with the existing customers and developing new clients. PEGATRON Group received tax bene t of NT$309 million as an encouragement for further Customer Service Customer Service Pegatron has several operation and manufacturing locations including Taiwan, China, investment according to regulations. For more detailed operating performance and Sustainable Sustainable United States, Mexico and Czech Republic. With a global operation network, the nancial information, please refer to the Company’s 2018 Annual Report. Supply Chain Supply Chain Company hopes to provide timely support and o ers value added services to be a one Sustainable Sustainable stop shop for total solutions to customers. http://www.pegatroncorp.com/investorRelation/annualReports/lang/en_US Environment Environment Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas Sustainable Design Sustainable Design The brief consolidated income statement of PEGATRON and its Environmental Environmental PEGATRON Files Protection Protection subsidiaries for the year ended 2018 and 2017 are as following: Joyful Work Joyful Work Company name: PEGATRON Corporation Employment Employment Unit: NTD in million 2018 2017 Relationship Relationship Date of establishment: Jan 1st, 2008. Attracting & Attracting & Headquarters: No. 76, Ligong St., Beitou District, Taipei City, Taiwan Operating Revenue 1,340,002 1,193,809 Nurturing Talent Nurturing Talent Cost of Sales 1,299,233 1,147,139 Occupational Occupational Stock code: 4938 (listed on the Taiwan Stock Exchange in 2010) Health & Safety Health & Safety Gross Pro t 40,769 46,670 Chairman of the Board: Tzu-Hsien Tung Employee Care Employee Care Operating Expenses 28,838 27,671 Social Care Social Care Total employees (dispatched labor included): About 172,995 employees Operating Income 11,931 18,999 Social Welfare Social Welfare worldwide in 2018 Non-operating Income & Expenses 3,125 1,414 Community Community Involvement Involvement Capital: NT$26.1 billion Pro t before Tax 15,056 20,413 Appendix-Index Appendix-Index Consolidated revenue: NTD 1,340 billion in 2018 Tax Expense 3,940 4,398 GRI content index GRI Standard Index Pro t 11,116 16,015 Main businesses: Computer, communication, and consumer United Nations Global United Nations Other Comprehensive Income 1,777 -5,878 Compact Index Global Compact electronics products Sustainability Sustainability Comprehensive Income 12,893 10,137 Major customers: Renowned global information technology and Development Goals Development Goals Pro t, Attributable to Owners of Parent 11,115 14,683 of the United Nations of the United Nations communication brands Statement Statement Comprehensive Income, Attributable to Owners of Parent 13,097 9,241 11 The illustration of the above mentioned categories Editorial Principles Editorial Principles Globalization Arrangement A Word from A Word from the CEO the CEO Identi cation & Identi cation & Assess the arrangement comprehensively to perfect the service globally. Protek AzureWave Communication Communication Casetek Camera Module, Wireless Module, SiP Social Responsibility In the area of high technology industry around the world, Taiwan is placed in a Pegaglobe Digitek Light Metal, Anodizing Commitment signi cant position. Many famous brands rely on innovation and exible research skills Kinsus / Piotek Stakeholder of Taiwan’s technology industry. Responding to increasing lower gross margin of OEM, CaseTek / Kaedar IC Substrate, PCB Communication original equipment manufacturing enterprises, the Group actively considers how to Metal, Plastic, Tooling Maintek Ostrava, ASRock Material Issue overcome this challenge, and moves toward a new model called DMS (Design, PC MB, IPC, Server Identi cation Czech FuYang Manufacturing and Service). FPC Sustainability Juarez, Lumens Development Goals Mexico Optoelectronics We have manufacturing and service centers all over the world, including Asia, Europe Company Pro le Company Pro le and America. Our manufacturing facilities and service centers have been strategically About PEGATRON established all over the world to provide the most e cient service to our customers. Core Business Vertical Integration Strategic Investment Financial Performance We set up these operation centers based on the strengths of the individual locations to Globalization Arrangement provide the fast and customized processes and solutions to our customers. Award List Sustainable Sustainable Management Management 1. Deployment of DMS Core Business Corporate Governance Corporate Governance Manufacturing Site Service Center Design Center Maintek Computer (Suzhou) Co., Ltd manufactures Notebooks (NBs), Desktops (DTs), Code of Conduct Code of Conduct Motherboards (MBs), Consumer Electronics (CEs), and Networking products, while Protek Information Security Information Security (Shanghai) Limited mainly manufactures Consumer Electronics and handheld devices, Risk Management Risk Management Pegaglobe Electronics (Kunshan) manufactures handheld devices. Besides, Digitek Regulatory Compliance Regulatory Compliance Computer (Chongqing) Co., Ltd mainly manufactures Notebooks. As a result of the free Responsible Responsible Ostrava, Czech Partnership Partnership trade zone in North America and tax regulations by European Union and in order to significant Suzhou, China Tokyo, Japan Customer Service Customer Service Indiana, US enhance customer service, Pegatron Mexico, S.A. DE C.V and Pegatron Czech s.r.o. (“PCZ”) Sustainable Sustainable were established as the major manufacturing centers in America and Europe respectively. Supply Chain Supply Chain HEADQUARTERS Chongqing, China Kunshan, China Sustainable Sustainable Juarez, Mexico Environment Environment Low Carbon & Energy Low Carbon & Energy Taipei, Taiwan 2. Deployment of Vertical Integration Greenhouse Gas Greenhouse Gas Shanghai, China Sustainable Design Sustainable Design Environmental Environmental Taoyuan, Taiwan Investment Company name Remarks Protection Protection Sao Paulo, Brazil category Joyful Work Joyful Work In additional to mental stamping for Employment Employment desktop PCs, Casetek has gradually Relationship Relationship developed technology in plastic Casetek computer (Suzhou) co., ltd. Attracting & Attracting & injection and become the main Nurturing Talent Nurturing Talent Major investments of PEGATRON Group can be mainly divided into the following manufacturing center of mechanical Occupational Occupational three categories: components in the Group. Health & Safety Health & Safety Employee Care Employee Care (1) DMS core business: Kaedar electronics (Kunshan) co., ltd. Social Care Social Care Central China operation center (Maintek and Cotek in Suzhou), East China operation Mechanical Kai He Computer Accessory (Suzhou) co., ltd. Social Welfare Social Welfare components Established via joint venture center (Protek in Shanghai and Pegalobe in Kunshan), West China operation center Core-tek (Shanghai) limited Community Community (Digitek in Chongqing), Pegatron Mexico Manufacturing Center and Pegatron Czech Involvement Involvement Dongbu zsc Manufacturing Center. Appendix-Index Appendix-Index GRI content index GRI Standard Index (2) Vertical Integration: A light metal manufacturer; we merge Casetek Holdings Ltd. (Cayman) it through acquisitions. United Nations Global United Nations Compact Index Global Compact Casetek (Suzhou), Kaedar Electronics (Kunshan), Casetek Holdings Ltd. (Cayman) and A new established company, which Sustainability Sustainability FuYang Technology. FuYang Technology Corporation Development Goals Development Goals focus on the FPC module. of the United Nations of the United Nations (3) Strategic Investment: Statement Statement Kinsus/ Piotek, ASRock, Azurewave and Lumens. 12 3. Deployment Strategic Investment Editorial Principles Editorial Principles A Word from A Word from Company name Remarks the CEO the CEO Identi cation & Identi cation & Communication Communication ASRock Incorporation Manufacturing and sales of a leading brand in low to Social Responsibility mid end motherboard and industry computer. Commitment Kinsus Interconnect Stakeholder Technology Corporation/ Mainly engaged in the manufacturing and sales of Communication Piotek Holding Limited BGA substrate and PCB. Material Issue Identi cation Sustainability Azurewave Technologies Inc. Major products including Wi-Fi module, camera Development Goals module, digital TV cards and LED products. Company Pro le Company Pro le About PEGATRON Lumens Digital Optics Inc. Major products including special purpose projectors Financial Performance and light engines for large screen monitors. Globalization Arrangement Award List Sustainable Sustainable Management Management Corporate Governance Corporate Governance Award List Code of Conduct Code of Conduct Information Security Information Security Risk Management Risk Management Ranked #2 among 2018 Common Wealth Magazine 2000 Survey in Taiwan ˙ Regulatory Compliance Regulatory Compliance Manufacturing Companies Responsible Responsible Top 20% of the best companies among The Fifth Corporate Governance Evaluation Partnership Partnership ˙ Customer Service Customer Service conducted by Taiwan Stock Exchange Sustainable Sustainable A constituent of the FTSE4Good TIP Taiwan ESG Index in 2018 Supply Chain Supply Chain ˙ Sustainable Sustainable 2018 Certi ed Nursing Room by the Health Bureau of Taipei City Environment Environment ˙ Low Carbon & Energy Low Carbon & Energy 2017 TOP 10 Foreign-owned Enterprises in International Trade (Maintek was awarded Greenhouse Gas Greenhouse Gas ˙ in September, 2018.) Sustainable Design Sustainable Design Environmental Environmental 2017 TOP 10 Foreign-owned Enterprises in R&D (Maintek was awarded in Protection Protection ˙ September, 2018.) Joyful Work Joyful Work Employment Employment Relationship Relationship Attracting & Attracting & Nurturing Talent Nurturing Talent Occupational Occupational Health & Safety Health & Safety Employee Care Employee Care Social Care Social Care Social Welfare Social Welfare Community Community Involvement Involvement Appendix-Index Appendix-Index GRI content index GRI Standard Index United Nations Global United Nations Compact Index Global Compact 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 • Ph.D of Business Management, • Chairman of Yangtze Associates National Chengchi University • Director and President of Huiyang Private Editorial Principles Editorial Principles Corporate Governance • Political Deputy Minister, the Equity Fund Co., Ltd. A Word from A Word from Ministry of Finance, R.O.C. • Director of Asustek Computer Inc. the CEO the CEO • Chairman of Bank of Taiwan • Independent Director of DBS Bank We honor ourselves as a corporate citizen, follow legal requirements Tze-Kaing • Executive Secretary of National • Director of TTY Biopharm Company Limited Identi cation & Identi cation & Director Communication Communication Yang Development Fund, Executive Yuan • Director of Taiwan Stock Exchange and self-monitor the compliance. • President of China Development • Director of CHIEN KUO Construction Co., LTD. Social Responsibility Industrial Bank • Director of Airiti Inc. Commitment • Associate Professor of MBA at Stakeholder Shareholders' Meeting National Chengchi University Communication We have adopted electronic voting as one of the means which shareholders may exercise • Bachelor of Economics, National Material Issue Taiwan University Identi cation their voting rights in shareholders' meetings since 2012. By doing so, we ensure that • Master degree in Economics, Sustainability shareholders can exercise their voting rights in accordance with laws and participate in National Taiwan University Development Goals the Company's major decisions and election of directors/ independent directors. The • Ph.D. in Economics, Case Western Company Pro le Company Pro le Reserve University total shares held by shareholders via electronic voting represented 80.05% of shares • Assistant Professor, Department of About PEGATRON present at Pegatron 2018 annual shareholders‘ general meeting. All agenda items, Economics, Ohio State University Financial Performance whether they involve an acknowledgment or discussion, are fully discussed by • Associate Professor, Professor and Globalization Department Chair of Economics, Arrangement participating shareholders before proceeding with votes. The number of votes in favor, National Taiwan University against and abstained votes for each agenda item are listed in details in the meeting • Dean of School of Management at Award List DAI-HE minutes and disclosed on the Market Observation Post System. National Central University • Independent Director of SinoPac Holdings Sustainable Sustainable • Professor and Director of Graduate Management Management Investment • Independent Director of SinoPac Institute of Industrial Economics at Securities Corp. Corporate Governance Director Co., Ltd. National Central University • Independent Director of Asia Cement Corp. Code of Conduct Rep. : S., Chi • Visiting Professor of Freie Universität Berlin, FU Berlin Information Security Information of Board of Directors and Supervisors are • Deputy Minister of Council for Risk Management listed in the following table: Economic Planning and Regulatory Compliance Development, Executive Yuan Responsible Responsible • Chief Negotiator of Taiwan's Partnership Partnership Title Name Education and Experience Current Positions accession to General Agreement on Trade in Services (GATS) Customer Service Customer Service • Chairman and Group CEO of Pegatron Corp. • Deputy chairman of Asia-Paci c • Master degree in Computer and • Director of Kinsus Interconnect Technology Sustainable Sustainable Communication Engineering, Economic Cooperation, APEC Supply Chain Supply Chain Corp. • Premier of Taiwan Academy of National Taipei University of • Director of ASRock Incorporation Sustainable Sustainable Technology Banking and Finance Environment Environment Chairman T.H. Tung • Director of AzureWave Technologies, Inc. • Chairman of Taiwan Stock • Honorary PH.D in Engineering, • Director of FuYang Technology Corp. Low Carbon & Energy Low Carbon & Energy National Taipei University of Exchange • Chairman of Lumens Digital Optics Inc. • Minister without Portfolio of Greenhouse Gas Greenhouse Gas Technology • Chairman of Pegavision Corp. • Vice Chairman of Asustek Executive Yuan Sustainable Design Sustainable Design • Director of Casetek Holdings Limited (CAYMAN) HONG-YE • Bachelor degree in Industrial and Environmental Environmental • Deputy Chairman and Deputy Group CEO Business Management, Tatung Protection Protection • Master degree in electrical of PEGATRON Corp. Investment Institute of Technology • President and CEO of PEGATRON Corp. Joyful Work Joyful Work Deputy Jason engineering, University of Southern • Chairman of Casetek Holdings Director Co., Ltd. Rep. : • Chief Operating O cer of California • Supervisor of FuYang Technology Corp. Chairman Cheng Limited(CAYMAN) PEGATRON Corp. Employment Employment • President and CEO of PEGATRON Corp. • Chairman of FuYang Technology Corp. S.J. Liao Relationship Relationship • Senior Vice President of Unihan Corp. • Deputy General Manager of Asustek • Chairman of AzureWave Technologies, Inc. Attracting & Attracting & • Director of Alcor Micro Corp. • Director of Polytronic Technology Corp. Nurturing Talent Nurturing Talent • B.S., Statistics, National Chengchi • Independent Director and Managing • BBA, National Taiwan University Indepen- C.B. Chang University Director of Far Eastern International Bank Occupational Occupational • MBA, University of • Director of Yangtze Associates dent • Deputy General Manager of China • Independent Director of Raydium Health & Safety Health & Safety Wisconsin-Madison • Independent Director of Ardentec Director Development Industrial Bank Semiconductor Corp. Employee Care Employee Care • Vice President, Citibank, N.A.Taipei Director C.I. Chia Corporation • Manager of Far Eastern Textile Ltd. • Independent Director of Social Care Social Care Branch • Supervisor of Airiti Inc. STANDARD FOODS CORPORATION • President, Individual Financial Social Welfare Social Welfare Services Group, Bank SinoPac • Electrical Engineering, National Indepen- • President & GM of Havix Electronics Co., Ltd. Community Community Taipei Institute of Technology • Independent Director of Kinsus Involvement Involvement • LL.B., National Taiwan University dent C.P. Hwang • President & GM of Havix Electronics Interconnect Technology Corp. Appendix-Index Appendix-Index • LL.M., University of British Columbia Director Co., Ltd. • LL.M., Harvard Law School GRI content index GRI Standard Index • S.J.D., Harvard Law School • Senior Partner of Lee and Li United Nations Global United Nations • Vice Chairman & Secretary-general Attorneys-At-Law Compact Index Global Compact Director C.V. Chen and Director of Straits Exchange • Director of Asia Cement Corporation Sustainability Sustainability Foundation (SEF) 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 • Provincial Keelung Senior High School protect the rights and interests of shareholders and implement corporate governance. • Group President of Landis Hotels and Resorts Editorial Principles Editorial Principles • Country Manager of American Express Inc. A Word from A Word from Taiwan the CEO the CEO • General Manager of the Grand Hotel 1. Board Meeting Indepen- • Chairman of Taiwan Visitors Association Identi cation & Identi cation & • Independent Director of dent C.S. Yen • Director of Paci c Asia Travel Association (PATA) Communication Communication Shinkong Insurance Co., Ltd. PEGATRON’s Board of Directors includes professionals from industries, nancial and other Director • Young Presidents’ Organization (YPO) Asia professional elds. The 4th Board of director consists of 11 directors*, and 3 of them are Social Responsibility Conference Commitment • Chairman for Asia Paci c region of The independent directors. To comply with the Securities and Exchange Act, PEGATRON has Stakeholder Leading Hotels of The World formulated the Rules of Procedure for Board of Directors Meetings for compliance. Communication The Board performs its authorities and duties in accordance with related laws and rules to Material Issue • Bachelor of Political Science, National Taiwan Identi cation establish internal management regulations for the supervision of management University Sustainability • PH.D. in International A airs & Master degree performance and the determination of major issues in order to maximize shareholders’ Development Goals in Law and Diplomacy of The Fletcher School, equity and ful ll loyal duties. Company Pro le Company Pro le Tufts University 6 meetings of the Board of Directors were held in 2018. The average attendance rate was 96.97% About PEGATRON • Member of the Legislative Yuan of R.O.C. • Associate Professor of Master's Program of * Mr. S.C.Ting resigned from his position on May 23, 2018. Financial Performance Political Science, National Taiwan University • Executive Director of Chinese Globalization • Visiting Research Fellow of Hoover Institution Blood Donation Association Arrangement of Stanford University • Chairman of Cross - 2. Audit Committee Director S.C. Ting Strait Development Foundation Award List (Note 1) • Deputy CEO of Central Policy Council of KMT • President of Cross-Strait Association for • Director of ChengHsin General PEGATRON’s Audit Committee was established in 2013 and is composed of all Sustainable Sustainable Hospital Management Management Advancing Culture Creative independent directors by law. The Board has formulated the Audit Committee Charter for • Vice President of Buddha's Light International Corporate Governance Association R.O.C. compliance. The main functions of the Audit Committee are to supervise fair expression Code of Conduct • Honorary President of Confucianism and of Pegatron’s nancial reports, the hiring (and dismissal) independence and performance Information Security Taoism Academic China of certi cated public accountants, the e ective implementation of the internal control • Lifetime Volunteer of John Tung Foundation Risk Management system, compliance with relevant laws and regulations and management of existing or Regulatory Compliance Note 1：Mr. S.C.Ting resigned from his position on May 23, 2018. The current positions are updated as potential risks. Responsible Responsible of February 28, 2018. PEGATRON’s Audit Committee shall convene a meeting at least once quarterly and may Partnership Partnership invite certi ed public accountants, internal audit O cers and managers of nance and Customer Service Customer Service accounting to attend the meeting. Sustainable Sustainable List of Major Shareholders: Supply Chain Supply Chain As of 08/05/2018 5 meetings of the Audit Committee were held in 2018. The average attendance rate was 100% Sustainable Sustainable Environment Environment Shareholder's Name Shareholding Percentage Low Carbon & Energy Low Carbon & Energy Asustek Computer Inc. (Representative: Jonney Shih) 17.17% 3. Remuneration Committee Greenhouse Gas Greenhouse Gas Sustainable Design Sustainable Design T.H.Tung 3.56% PEGATRON’s Remuneration Committee was established in 2011 and is composed of 3 Environmental Environmental Jonney Shih 2.57% independent directors. The Board has formulated the Remuneration Committee Charter Protection Protection Ted Hsu 2.16% for compliance by law. Joyful Work Joyful Work Silchester International Investors International Value The functions of the Committee are: Employment Employment 2.03% Relationship Relationship Equity Trust (1) Professionally and objectively evaluate the policy and system for compensation of Attracting & Attracting & GDR-PEGATRON Corporation 1.64% the directors, supervisors, and managerial o cers of this Corporation. Nurturing Talent Nurturing Talent (2) Submit recommendations to the board of directors for its reference in decision making. Cathay United Bank in Custody for Expert Union Limited Occupational Occupational 1.47% The Remuneration Committee shall convene a meeting at least twice yearly. Health & Safety Health & Safety Investment Account 4 meetings of the Remuneration Committee were held in 2018. The average attendance rate Employee Care Employee Care NAN SHAN Life Insurance Co., Ltd 1.30% Social Care Social Care was 100%. CTBC Bank in Custody for Pegatron Corporation 1.22% Social Welfare Social Welfare Vanguard Emerging Markets Stock Index Fund, A Series Community Community 1.15% Involvement Involvement of Vanguard International Equity Index Funds Appendix-Index Appendix-Index Code of Conduct GRI content index GRI Standard Index United Nations Global United Nations Integrity is the top priority to establish a good business culture. Compact Index Global Compact Board and Subsidiary Committees Sustainability Sustainability Development Goals Development Goals By complying with the Taiwan Company Act, Securities and Exchange Act and other related Because the importance of business ethics and corporate responsibility in the world is of the United Nations of the United Nations regulations, Pegatron’s Board has set up two subsidiary committees: Audit Committee and greater than before, a sustainable corporate should earn the reliability and respect from all Statement Statement Remuneration Committee in order to strengthen the powers of the board of directors, kinds of consumers, its partners and the public. Code of Business Ethics of PEGATRON can
re ect our core value, and it is the basic discipline for us. To improve business integrity management, relevant departments are assigned to establish the Corporate Ethical Management Policy and the prevention system against corruption and malpractice. The implementation results and compliance of the policy are reported to the Board of Directors by designated personnel. Corporate Ethical Management Policy is clearly stated in the internal policy and external documents. The Board of Directors and management team are fully committed to implementing 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 them internally, but also promote them to our supply chain. Prior to any business engagement, the Company checks the partner’s legality and its records of ethical conducts. All long-term suppliers are required to sign a “Statement of Integrity” which stipulates the contractual liability for violation of ethical conduct, to build a good business environment together. The ratio of the suppliers that signed the commitment till the end of 2018 was about 75%. Integrity is the top priority to establish a good business culture.
Because the importance of business ethics and corporate responsibility in the world is greater 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
16 re ect our core value, and it is the basic discipline for us. To improve business integrity all reported cases. For the potential con ict of interests, we establish measures to Editorial Principles Editorial Principles management, relevant departments are assigned to establish the Corporate Ethical prevent con ict of interests and appropriate reporting channels to re ect any A Word from A Word from Management Policy and the prevention system against corruption and malpractice. The potential risks. the CEO the CEO implementation results and compliance of the policy are reported to the Board of Identi cation & Identi cation & Directors by designated personnel. Corporate Ethical Management Policy is clearly stated PEGATRON regularly conducts risk assessments relating to operation and nancial Communication Communication in the internal policy and external documents. The Board of Directors and management a airs for all important operation sites, and the major risks identi ed are sales and Social Responsibility Commitment team are fully committed to implementing such policy rigorously and thoroughly in procurement. We perform the control activities according to the results of risk Stakeholder internal management and external business dealings. assessments. For the higher risk of operational activities, we establish an e ective Communication accounting system and internal control system, and review them at any time. The Audit Material Issue From the management level to employees, we commit to abide by business ethics and O ce also develops the annual audit plan based on the results of risk assessments and Identi cation con dentiality. We not only perform them internally, but also promote them to our supply reports to the Board of Directors together with audit reports. Sustainability Development Goals chain. Prior to any business engagement, the Company checks the partner’s legality and Company Pro le Company Pro le its records of ethical conducts. All long-term suppliers are required to sign a “Statement We establish operational procedures for handling reported cases and protect the About PEGATRON of Integrity” which stipulates the contractual liability for violation of ethical conduct, to whistleblowers. The content of the reported cases are handled in con dentiality to Financial Performance build a good business environment together. The ratio of the suppliers that signed the avoid any unfair treatment or retaliation. In 2015, there was a case regarding leaking Globalization commitment till the end of 2018 was about 75%. the company’s trade secrets, which violated the work rule and business code of Arrangement conduct and were handled based on our internal norms for punishment and Award List litigation. Such case was still under litigation in 2018. We did not have any other PEGATRON is committed to upholding the strictest business ethics. All employees Sustainable Sustainable similar case in 2018 except for such case. Management Management should abide by the highest standards of probity. Any kind of corruption, blackmail Corporate Governance or embezzling of company funds is strictly prohibited. All sta in their work should Code of Conduct abide by the following principles: Information Security 1. All sta shall be honest and fair in their dealings with customers and vendors. Information Security Risk Management 2. It is strictly prohibited for sta to receive or claim directly or indirectly for gifts, Regulatory Compliance favorable dealings or other special treatment as an abuse of the powers of a position. Privacy and Intellectual property are highly valued and managed Responsible Responsible Partnership Partnership 3. It is strictly prohibited for sta to use the powers of a position to receive or claim by implementing information security control. Customer Service Customer Service directly or indirectly unreasonable interest or other corrupt practices. Sustainable Sustainable 4. It is strictly prohibited for sta to extort property by the abuse of the powers of a As an excellent partner in green design, manufacturing and service for our customers, Supply Chain Supply Chain position. Sustainable Sustainable protecting customers’ privacy and intellectual property is regarded as a very important Environment Environment 5. It is strictly prohibited for any unauthorized use of the name of the company duty in PEGATRON. To show our determination of information protection for the Low Carbon & Energy Low Carbon & Energy other than in business related matters. products, assets and data of customers, the CEO approved the Con dentiality Policy in Greenhouse Gas Greenhouse Gas 6. It is strictly prohibited to embezzle the company’s property for personal interests. 2010. Under the control of the policy and relevant processes, all information about the Sustainable Design Sustainable Design products and data of customers are kept con dential. All employees have the Environmental Environmental responsibility of not disclosing, not collecting and not using the information beyond our Protection Protection PEGATRON’s Board of Directors approved the Ethical Corporate Management Policy business scope. We earn customers’ trust by protecting their assets and providing a Joyful Work Joyful Work and the Codes of Ethical Conduct in November, 2014. We stipulated the preventive complete information security environment. Employment Employment Relationship Relationship measures of unethical conducts, penalties and grievance procedures according to Attracting & Attracting & our Business Ethics and Code of Conduct and Business Gifts and Entertainment To meet customers’ requirements for information security, and protect customers’ privacy Nurturing Talent Nurturing Talent Policy. All employees shall follow these guiding principles of integrity, honesty, 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 the trainings on corporate ethics management each year, to customer needs. We rigorously review data, business application, operation system, Employee Care Employee Care strengthen the ethics concepts of our employees. intranet, extranet, physical environment, procedures & policy as well as conduct entire Social Care Social Care The Ethical Corporate Management Policy and Codes of Ethical Conduct were control when creating an account, requiring a password, applying and setting the access Social Welfare Social Welfare published on the Company's website: authority, applying an ID, limiting log in authority, recording audit records and getting Community Community Involvement Involvement http://www.pegatroncorp.com/investorRelation/majorInternalPolicies multiple certi cations. Appendix-Index Appendix-Index GRI content index GRI Standard Index In order to make progress towards sustainability, PEGATRON not only implements For the actual construction and building protection of information assets, we control the United Nations Global United Nations the relevant actions internally, but also joins the Responsible Business Alliance security in all accesses strictly and implement the Disaster Recovery System. Also, we Compact Index Global Compact (RBA) and complies with the RBA Code of Conduct. We also formulate the Business implement the structure of the high-availability system to ensure information continuity. Sustainability Sustainability Ethics Code of Conduct as an internal management procedure to request all We use encryption system to protect and control the access authority for con dential and Development Goals Development Goals of the United Nations of the United Nations employees to obey. PEGATRON sets forth penalties for violation of code of conduct sensitive documents, and also adopt encryption and private communication protocol to Statement Statement and the grievance mailbox for reporting of any violations. The Audit O ce handles ensure the con dentiality of important data.
In addition to periodical backup, we implement remote backup mechanism to ensure the completeness of data preservation. To enhance the awareness of security for all relevant personnel, PEGATRON not only propagates information security and con dentiality periodically, but also performs relevant customized training programs for di erent personnel according to their operations, including security operation concept introduction, standard operating procedure introduction, crime prevention and the compliance with security policy. Besides, employees whose operations are related to con dential information need to sign con dentiality agreements and have the obligation of accepting information security audits.
To ensure the e ectiveness of information security management system, the Company regularly conducts internal audits every year to meet customer requirements. Through continuous improvement and reduction of threats posed by information security incidents and impacts, PEGATRON had no breach of any customer’s privacy in 2018. 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, protecting 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 kept con dential. All employees have the responsibility of not disclosing, not collecting and not using the information beyond our business scope. We earn customers’ trust by protecting their assets and providing a complete information security environment.
To meet customers’ requirements for 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 conduct entire 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 accesses strictly and implement the Disaster Recovery System. Also, we implement the structure of the 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 Editorial Principles Editorial Principles the completeness of data preservation. To enhance the awareness of security for all Risk Management A Word from A Word from relevant personnel, PEGATRON not only propagates information security and the CEO the CEO con dentiality periodically, but also performs relevant customized training programs Identi cation & Identi cation & for di erent personnel according to their operations, including security operation Identify and control the risks, then transform the risks Communication Communication concept introduction, standard operating procedure introduction, crime prevention into opportunities. Social Responsibility Commitment and the compliance with security policy. Besides, employees whose operations are In order to achieve the goal of sustainable development and e ciently reduce the risks Stakeholder related to con dential information need to sign con dentiality agreements and have Communication the obligation of accepting information security audits. of business continuity, we identify and control several kinds of risks during corporate Material Issue operations. For marching towards sustainability, risk management is not only taken into Identi cation To ensure the e ectiveness of information security management system, the Company our daily operations, but also regarded as one of the determinant factors in Sustainability corporate governance. Development Goals regularly conducts internal audits every year to meet customer requirements. Through Company Pro le Company Pro le continuous improvement and reduction of threats posed by information security About PEGATRON incidents and impacts, PEGATRON had no breach of any customer’s privacy in 2018. Financial Performance Globalization Arrangement The identi cation and management of various risks are listed as below: Award List Sustainable Sustainable Management Management Risk of Getting Improper Advantages Based on Risk of Data Leakage or being Infringed Risk of Material Shortage Corporate Governance Position or Company Internal Data • Antivirus protection and encryption process • Second sources are taken into account for all key components • Account management, access by privilege, multiple Code of Conduct • Integrity policy and bribery prevention programs • Accounting system, internal control and auditing certi cations and audits Risk of Workforce Shortage • Automatic production for the enhancement of e ciency Information Security • Specifying the default liability against the integrity principle in Risk of Interruption of Information Service • Allocation of manpower between manufacturing sites to raise Risk Management the contract • Backup, remote backup and Disaster recovery the exibility of workforce Regulatory Compliance • Continuously promote the integrity policy and conduct the trainings Responsible Responsible Partnership Partnership Customer Service Customer Service Information Sustainable Sustainable Security Production Supply Chain Supply Chain Governance Security Sustainable Sustainable Risk of Products with Restricted Risk of Abusing Child labor Environment Environment Substances • Identity veri cation, facial recognition system • Remediation of Child labor Low Carbon & Energy Low Carbon & Energy • Technical standards for the forbiddance of hazardous substances Greenhouse Gas Greenhouse Gas • Materials Management e-platform Growth Risk of Forced Labor Sustainable Design Sustainable Design • External Audit • The training of avoidance of forced labor for recruitment • Material approval and testing personnel and the managers Environmental Environmental • Interview with new employees Protection Protection Emissions of Hazardous Substances Environ- • Anonymous grievance channels Joyful Work Joyful Work • Elimination of substances with high contamination during the design phase mental Labor Employment Employment • Reduction of the use of substances in manufacturing phase to reduce the wastes Protection Rights Risk of Harassment or Abuse in Workplace Relationship Relationship • The policy and procedure of grievance and investigation Mutualism Equality • Protection of complainant and the ones under investigation Attracting & Attracting & • Policy of no retaliation Nurturing Talent Nurturing Talent Risk of Environmental Impact due to Activities Occupational Occupational of Manufacturing Sites Community Responsible Health & Safety Health & Safety • Obtain the Environmental Permits Impact Sourcing Risk of Unethical Mineral Sourcing Employee Care Employee Care • Regular Monitoring of emissions to ensure the compliance • Due diligence • Appropriately maintain the pollution control equipment Social Care Social Care Climate • Encourage the smelters in the supply chain to participate in RMAP Workplace (Responsible Minerals Assurance Process) Social Welfare Social Welfare Risk of Community Development Impact due Change Equality Community Community to Operations Risk of Non-conformance in Supply Chain Involvement Involvement • Public communication channels for stakeholders • Drive suppliers to commit to abide by the RBA Code of Conduct Appendix-Index Appendix-Index • Activities and communications with local communities • Pre-selection of new suppliers and annual CSR audit for major suppliers GRI content index GRI Standard Index Risk of Discrimination in Risk of Inequality in Employment on United Nations Global United Nations Risk of Business Interruption due to Risk of Energy Shortage Compact Index Global Compact • Implement energy management system Recruitment Cultivation, Development and Promotion Extreme Climates • Grievance hotline directly to • Multiple learning resources Sustainability Sustainability • Emergency Response Plan • Practice the energy management measures Development Goals Development Goals an objective department • Direct communication mechanism to management levels • Re-allocation plan of the available resources among • Improve the facilities and optimize the of the United Nations of the United Nations • Anti-discrimination training for recruiters • Standardized appraisal index sites to support our continuous manufacturing processes to enhance production e ciency Statement Statement • Multiple grievance or suggestion channels 18
Editorial Principles Editorial Principles Regulatory Compliance A Word from A Word from the CEO the CEO Identi cation & Identi cation & The basic principle is to comply with the laws and to strictly abide Communication Communication by them inside out. Social Responsibility Commitment Stakeholder Since inception, PEGATRON Group has complied with relevant laws and regulations, Communication and continually followed any policies and laws that could have signi cant impacts on Material Issue our nance and business. Our legal team noti es the relevant departments the latest Identi cation developments of laws and regulations and assists our company to comply with such Sustainability Development Goals laws and regulations. That not only reduces the direct nancial risks, but also avoids the Company Pro le Company Pro le indirect business reputation risks. After receiving the latest laws and regulations, About PEGATRON relevant units will set the management procedures and process to audit the obligation Financial Performance compliance of such laws and regulations accordingly to reduce illegal risks. Our legal Globalization team also holds relevant trainings, and we not only expect colleagues to follow the Arrangement regulations, but also avoid any operations leading to breach. PEGATRON Group has Award List involved in an anti-trust litigation due to Qualcomm company breaching anti-trust law Sustainable Sustainable as the result of its conducts of patent licensing in 2018. However, there was no other Management Management signi cant non-compliance with laws or regulations in 2018. Corporate Governance Code of Conduct Information Security Risk Management Regulatory Compliance Responsible Responsible Partnership Partnership Customer Service Customer Service Sustainable Sustainable Supply Chain Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Low Carbon & Energy Greenhouse Gas Greenhouse Gas Sustainable Design Sustainable Design Environmental Environmental Protection Protection Joyful Work Joyful Work Employment Employment Relationship Relationship Attracting & Attracting & Nurturing Talent Nurturing Talent Occupational Occupational Health & Safety Health & Safety Employee Care Employee Care Social Care Social Care Social Welfare Social Welfare Community Community Involvement Involvement Appendix-Index Appendix-Index GRI content index GRI Standard Index United Nations Global United Nations Compact Index Global Compact Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations 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 team constantly engages in the development and improvement of green Editorial Principles Editorial Principles Customer Service materials, including the management of hazardous substances, the research of recyclable A Word from A Word from and biodegradable materials, and the product reliability analysis. We also do classi ed the CEO the CEO research of metals, plastics, coatings, inks and other raw materials, thus enabling to Identi cation & Identi cation & Improve the service process and accumulate core techniques to develop the products that meet the environmental objectives at the minimum costs. For Communication Communication enhance satisfaction. the development of clean production process, we focus on meeting customers’ green Social Responsibility Commitment product speci cations and carbon reduction requirements as the core elements. Our Stakeholder The business strategy of PEGATRON is to be an expert in design and manufacturing as well as to short-term goal is to lean the current processes and long-term goal is to simplify them and Communication improve the service process for global arrangement to meet customers’ needs thoroughly. By reduce the equipment used when developing green materials, and to nd out a new Material Issue providing customers with the best service, they can focus on brand and channel operations clean production way. PEGATRON has a very prospective research ability to achieve the Identi cation and we can earn customer satisfaction. “Navigate the Future” is PEGATRON Group’s business responsibility of a corporate citizen, with the ultimate goal to be non-toxic, pollution-free, Sustainability Development Goals philosophy. We navigate our customers to obtain business opportunities ahead of the market environmental friendly, energy saving and carbon reducing. Company Pro le Company Pro le with our innovative technology and design for service. We provide new integrated service from About PEGATRON design, manufacturing to after-sales service. With a complete service experience, we can With customers’ global layouts, our overseas customer service teams are located around Financial Performance quickly and e ciently ful ll our customers’ expectations. the world to meet customers’ needs. Therefore, we are able to provide the most immediate and convenient services, as well as o er the most comprehensive support to Globalization Our research and development teams whole-heartedly serve our customers from the rst Arrangement customers around the world with our well-established service network composed of tens stage of product development. After the in-depth understanding of customer needs and Award List of service sites on all continents. Furthermore, we provide our customers with customized expectations for new products, we begin with the viewpoints of users and combine with Sustainable Sustainable service planning, immediate and e ective technical support, experienced repair teams, Management Management the aesthetics and innovations to develop our new products. We completely state and professional supply chain management, friendly IT systems, worldwide service sites, and Corporate Governance Corporate Governance explain to customers from di erent levels for positioning of products, special materials and the greatest enthusiasm with a superior commitment. Code of Conduct Code of Conduct style options, parts selection, product functions, appearances and packaging, production Information Security Information Security conditions, and even the challenges that we may face in the manufacturing process or PEGATRON not only has high expectation and responsibility for our service quality, but Risk Management Risk Management impacts on the environment. Meanwhile, we also pay attention to test ows. We not only also pays great attention to the voice of consumers. Through the customer satisfaction Regulatory Compliance Regulatory Compliance pursue the most advanced testing technologies, but also make a huge investment in surveys or QBR (Quarterly Business Review) meetings, we can listen most directly to Responsible Responsible professional testing equipment. The only purpose is to design perfect products of Partnership Partnership customer’s suggestions and concerns. According to the QBR results and the opportunities maximizing customer’s interests and to keep in line with market expectations. Customer Service for improvement gured out by our customers, we xed those issues through internal Sustainable To improve product value and accumulate the core technology, PEGATRON commits to train improvements and professional training programs within the timeframe set to reduce Supply Chain innovative talents and develop diversi ed product applications. We got the total number up defects to pursue 100% customer satisfaction. Sustainable Sustainable Environment Environment to 184 global patents certi ed in 2018 to create maximum value for our customers. Besides, we actively investigate customers’ satisfaction by customer surveys about the aspects Low Carbon & Energy Low Carbon & Energy of our products, services, quality, delivery, technical support, business response and hazardous Greenhouse Gas Greenhouse Gas substances free management. We can understand the overall management and operational Sustainable Design Sustainable Design 140 Environmental Environmental 120 performance from customers’ point of views to adjust the direction and management with Protection Protection 120 in-depth review, and propose the speci c strategies and programs for improvement. Joyful Work Joyful Work 100 Employment Employment Based on the statistical results of customer satisfaction surveys, the annual average Relationship Relationship 80 customer satisfaction score of PEGATRON in 2018 was 82.3. We respect the spirit of Attracting & Attracting & continuous improvement to perform improvement projects for de ciencies. In 2018, the Nurturing Talent Nurturing Talent 60 Occupational Occupational main types of customer complaints were production and materials. All customer Health & Safety Health & Safety 40 complaints are closed. For customer complaints, each business group/unit and factory 22 Employee Care Employee Care 20 17 immediately convene meetings to review and practice the improvement measures as Social Care Social Care 2 5 5 5 5 1 1 1 well as track the status of the improvements. At the same time, it is required that the Social Welfare Social Welfare 0 customer complaints should be xed as soon as possible. Taiwan United States France Europe Italy Finland Community Community Involvement Involvement China Japan Germany United Kingdom Denmark Appendix-Index Appendix-Index GRI content index GRI Standard Index United Nations Global United Nations Compact Index Global Compact 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 Build a sustainable supply chain through communication, Environmental 4 Industrial PC Social Responsibility monitoring, cooperation and growth together with our partners. Quality Quality Service Commitment 3 Stakeholder (including HSF) Network Devices Communication 2 Consumer Supply Chain Status Material Issue Identi cation 1 Electronics █ As an enterprise of information, communication and consumer electronics technology Sustainability 0 Automotive Development Goals Electronics industry, PEGATRON provides the service mainly on research, design and manufacturing. Company Pro le Company Pro le Account Ful llment System Product Our supply chain consists of raw material suppliers, equipment suppliers, waste disposal About PEGATRON management vendors, material transportation vendors, service providers (such as security, food, Financial Performance cleaning), human resource agencies and so on. The main raw material suppliers of Globalization PEGATRON are electronic components and mechanical parts suppliers. We design and Arrangement assemble nished goods according to customer demands with components provided by Award List our suppliers, and then deliver them to the designated sale territories. More than 1,800 Sustainable Sustainable RMA service Technical support Management Management suppliers cooperated with PEGATRON in 2018, and most of them came from Taiwan, Corporate Governance Corporate Governance China, United States, Japan and South Korea. Since the main production base is located in Code of Conduct Code of Conduct China, 90% of our suppliers are located in Asia. The supplier types includes manufacturers, Information Security Information Security authorized agents and so on. Their industry types are mainly capital-intensive and Risk Management Risk Management technology-intensive ones. PEGATRON promotes local purchase continuously. It not only Regulatory Compliance Regulatory Compliance Overall Customer Satisfaction in 2014-2018 reduces the transportation costs and responds to carbon reduction e ort, but also Responsible Responsible enhances local employment opportunities. Before we cooperate with suppliers, we not Partnership Partnership Overall Satisfaction (%) only consider technology, quality, delivery and cost, but also request our suppliers to Customer Service 95% commit to environmental protection, occupational safety and health, and labor rights so Sustainable as to ful ll our corporate social responsibility. Supply Chain 91.3% Sustainable Sustainable Environment Environment 90% PEGATRON plays an important role in the electronic supply chain. Therefore, the Low Carbon & Energy Low Carbon & Energy management of supply chain is one of the key issues for us. According to the customer Greenhouse Gas Greenhouse Gas 85.2% requirements, legal requirements and international trends, we have written internal 85% Sustainable Design Sustainable Design 83.5% procedures to monitor the performance of suppliers, including advocacy, promotion 82.5% 82.3% Environmental Environmental and audit. Besides, we hold several training programs to introduce the concept and Protection Protection 80% develop the ability of sustainability into the entire electronic supply chain. In addition, Joyful Work Joyful Work we also manage our vertical integration a liates and subsidiaries through the supply Employment Employment chain management process to enhance the sustainable development of electronic Relationship Relationship 75% Attracting & Attracting & supply chain. Nurturing Talent Nurturing Talent 2014 2015 2016 2017 2018 Occupational Occupational Health & Safety Health & Safety Supplier Risk Assessment Employee Care Employee Care Our priority is to reach the highest satisfaction of customers and business partners. By Social Care Social Care implementing the management systems of corporate social responsibility (PureCSR) and To make sure that suppliers meet our requirements for Quality, Cost, Delivery, Service, Social Welfare Social Welfare quality with hazardous substances free (PureGMS), we continue to improve internal Technology and Corporate Social Responsibility, they have to participate in PEGATRON’s Community Community processes and build a good corporate image to meet customers’ requirements. We even QBR (Quarterly Business Review) regularly. Suppliers with outstanding performances Involvement Involvement have a target to exceed customer expectations for better customer service management. would be our long-term partners and have chances become our Annual Excellent Appendix-Index Appendix-Index Suppliers. Suppliers with bad performances will be regarded as unquali ed suppliers. If GRI content index GRI Standard Index the nonconformities are signi cant, PEGATRON will terminate the contractual United Nations Global United Nations relationships with them when necessary. At the same time, the Procurement Unit Compact Index Global Compact regularly reviews the nancial statements and conduct the nancial risk assessments of Sustainability Sustainability Development Goals Development Goals suppliers to ensure that they meet the low risk level of nancial standard. of the United Nations of the United Nations Statement Statement 22 Supply Chain Management: Editorial Principles Editorial Principles SRM (Supplier Relationship Management System) is the platform on which PEGA- A Word from A Word from TRON communicate with our suppliers. We announce and update the latest news or the CEO the CEO requirements on this system to let all suppliers know. The annual supplier conference Identi cation & Identi cation & information is also uploaded to SRM. The functions related with PureCSR issues Communication Communication provided by SRM system include: Social Responsibility Commitment • Hazardous Substances Management – Suppliers can upload documents Stakeholder Contract and CoC Communication including certi cates of non-hazardous substances, composition tables or (New suppliers) Material Issue SDSs (safety data sheets), and third party test reports. Identi cation Sustainability • Con ict Minerals Survey System – We follow the Con ict Minerals Reporting Development Goals Template (CMRT) and invite our suppliers to upload their Con ict Minerals Company Pro le Company Pro le Report (CMR) into SRM system. About PEGATRON Supplier Chain Managment Financial Performance • PureCSR Supplier Management – We announced CSR requirements and standard Globalization on SRM system so that suppliers can upload them to follow-up. Regulation Arrangement and PureGMS & Award List PureCSR Audit • Business Ethics Management – The complaint mailbox for business ethics and Compliance Sustainable Sustainable (Existing suppliers) Management Management statement of integrity are available for suppliers to download on the SRM system. (New suppliers) Corporate Governance Corporate Governance Code of Conduct Code of Conduct • PureGMS Supplier Management – Suppliers can regularly update their ISO Information Security Information Security certi cates and reports based on related requirements (e.g. China Compulsory Risk Management Risk Management Certi cation Reports, Finished Product Inspection Reports, and so on). Regulatory Compliance Regulatory Compliance New Suppliers Selection Responsible Responsible Partnership Partnership In accordance with internal procedures, evaluation was conducted on our new suppliers Customer Service in terms of quality management system, hazardous substances free (HSF) management Sustainable Audit & Communication Supply Chain █ system and manufacturing ability so as to ensure they comply with relevant requirements. Sustainable Sustainable PEGATRON obeys its supplier quality & CSR management procedures for regular A new supplier shall be certi ed with one management system among ISO 9001, IATF Environment Environment management to ensure the quality of components. Besides, we also issue the Supplier 16949 or TL 9000. Except for meeting the standards of quality and green management Low Carbon & Energy Low Carbon & Energy Consulting Standard. With this standard, we can help suppliers to set up product HSF system, new suppliers shall also comply with the PEGATRON PureCSR policy. They are not Greenhouse Gas Greenhouse Gas system, quality system & process control standard, so as to improve suppliers’ product only requested to sign the Pegatron Supplier Code of Conduct Agreement, but also to Sustainable Design Sustainable Design environment quality, delivery quality and process capabilities. Meanwhile, we ask new accept evaluation on their compliance with governance, environmental protection and Environmental Environmental suppliers to sign the PEGATRON Supplier Responsible Business Alliance Code of social aspects based on the violation records revealed in public. Furthermore, the Protection Protection contracts between PEGATRON and suppliers also de ne that the suppliers shall comply Joyful Work Joyful Work Conduct Agreement and commit that their operations are in line with PureCSR policy and requirements. with all relevant laws and the RBA Code of Conduct. If there is any severe violation, the Employment Employment business relationship may be terminated by PEGATRON. Relationship Relationship The ratio of the suppliers that undersigned PEGATRON Supplier Responsible Business Attracting & Attracting & Nurturing Talent Nurturing Talent Alliance Code of Conduct Agreement till the end of 2018 was 85.5%. Also, there were The new supplier self-assessment questionnaire (SAQ) had been started in 2018. There Occupational Occupational 1,366 evaluations of supplier environmental performance conducted in 2018. were 507 new suppliers involved in the SAQ, and the new suppliers would be listed in the Health & Safety Health & Safety next annual supplier audit scope if the result of SAQ was middle or high risk. For the SAQ Employee Care Employee Care result, 206 new suppliers responded that they have 1SO 14001, OHSAS 18001, RBA online Social Care Social Care SAQ or they had conducted RBA VAP or RBA non VAP. Social Welfare Social Welfare Community Community Involvement Involvement Appendix-Index Appendix-Index GRI content index GRI Standard Index United Nations Global United Nations Compact Index Global Compact Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 23 Annual Supplier Audit were 6 PEGATRON supplier conferences held in di erent areas, including HQ, Central China Editorial Principles Editorial Principles and West China in 2018. There were 694 suppliers and 1193 people in total that joined the PEGATRON implements supplier audits annually in accordance with internal procedures, A Word from A Word from conferences. The main topics of the conference were green technology standards and the CEO the CEO so as to ensure that suppliers comply with PureGMS and PureCSR requirements. Any related notes of supplier management. Our corporate social responsibility and con ict Identi cation & Identi cation & supplier that does not pass the onsite audit will be asked to improve the minerals requirements were also introduced simultaneously. Through the Supplier Communication Communication non-conformities by the deadline and complete the corrective actions. We classify the Conferences, we delivered the concept of sustainable development to suppliers and had Social Responsibility results of unquali ed suppliers and feedback them to our Procurement Center as a Commitment a two-way communication with them. reference for supplier management. Stakeholder Communication Material Issue Identi cation Supplier Management Process: Sustainability Development Goals 1. PEGATRON Supplier Responsible Company Pro le Company Pro le Business Alliance Code of Conduct Agreement About PEGATRON PureGMS & 2. Requirment and regulation Compliance Financial Performance PureCSR Audit 3. PureGMS & PureCSR Audit Globalization Arrangement Award List Existing supplier New supplier Sustainable Sustainable Management Management Corporate Governance Corporate Governance Annual suppler audit Code of Conduct Code of Conduct Information Security Information Security Rejected Pass Risk Management Risk Management Regulatory Compliance Regulatory Compliance Evaluated supplier Quali ed supplier Responsible Responsible Re-Audit Pass Partnership Partnership Through the regular Supplier Conferences, we delivered the concept and communicated with them. Customer Service Correction Sustainable and Supply Chain Prevention Sustainable Sustainable Con ict Minerals Environment Environment Rejected █ Low Carbon & Energy Low Carbon & Energy Disquali ed Greenhouse Gas Greenhouse Gas supplier The mining industry in Democratic Republic of the Congo (DRC) and adjoining countries Sustainable Design Sustainable Design are occupied by certain non-governmental organizations or non-governmental military Environmental Environmental groups which may cause serious social and environmental issues in the region, including Protection Protection armed con ict, theft, extortion, illegal child labor, women captivity, deforestation, and so Joyful Work Joyful Work on. To reduce the violations of human rights, many corporations have disclosed the Employment Employment PEGATRON regularly conducts e-surveys for major suppliers every year to ensure that sources of metals to avoid using or importing “Con ict Minerals” from DRC illegally, or Relationship Relationship suppliers can meet CSR requirements, including management systems, labor rights, health Attracting & Attracting & smuggled through surrounding countries to prevent the above events from occurring. Nurturing Talent Nurturing Talent and safety, business ethics, product responsibility, greenhouse gas emissions and other aspects on CSR. The number of major suppliers that were highly concerned about in 2018 Occupational Occupational As a corporate citizen and one of Responsible Business Alliance (RBA) members, Health & Safety Health & Safety was 164 and we issued the e-survey questionnaires to all of them. The overall response rate PEGATRON not only discloses its con ict minerals statement on the company website, but Employee Care Employee Care and approved rate were 100% and 86.0% respectively. There were 23 suppliers that failed also establishes an internal procedure to conduct the risk management of supply chain. Social Care Social Care in the audits and all of them are included in 2019 annual supplier audit program to track We have launched con ict minerals investigation project since 2012 according to the Social Welfare Social Welfare their corrective actions continuously. In addition to e-survey, there were 41 suppliers that Organization for Economic Cooperation and Development (OECD) Due Diligence Community Community accepted on-site audits in 2018. The 3 suppliers of non-conformance were required to Guidance. We follow the Con ict Minerals Reporting Template (CMRT) founded by Involvement Involvement respond the corrective and preventive actions for re-audit, and the others provided the Responsible Minerals Initiative (RMI) to establish PEGATRON’s SRM Con ict Minerals Appendix-Index Appendix-Index corrective reports within the due date and was approved by PEGATRON's audit teams. GRI content index GRI Standard Index Survey System and invite our suppliers to disclose the smelter information relating to their United Nations Global United Nations products and upload Con ict Minerals Report (CMR) to the system. Compact Index Global Compact Supply Chain Promotion Sustainability Sustainability Development Goals Development Goals We regularly hold supplier seminars every year to advocate PureGMS & PureCSR policies, of the United Nations of the United Nations hazardous substances free requirements and supplier management requirements. There Statement Statement 24 Con ict Minerals Investigation Process: were used in Pegatron's products are identi ed to approach the using ratio, and also reach Editorial Principles Editorial Principles the goal of being sourced from quali ed smelters/ reneries step by step accordingly. A Word from A Word from the CEO the CEO Identi cation & Identi cation & PEGATRON Supply Chain Replied Situation by Year Communication Communication Social Responsibility 100% Commitment Pegatron_SRM 96% 96% Stakeholder send the survey mail Communication 95% 91% 92% Material Issue 90% Identi cation 90% 87% Sustainability Development Goals Tier 1 Suppliers Sub suppliers Upstream suppliers 85% Company Pro le Company Pro le 80% About PEGATRON 80% Financial Performance Upload Push Globalization Arrangement 75% 2012 2013 2014 2015 2016 2017 2018 Award List Sustainable Sustainable Upload the CMR Management Management to SRM portal Rejected Corporate Governance Corporate Governance Code of Conduct Code of Conduct Con ict Minerals Ratio in 2018 Information Security Information Security Review Risk Management Risk Management 100% 93.4% Regulatory Compliance Regulatory Compliance Passed 80% 78.1% Responsible Responsible Partnership Partnership 60% Customer Service Download CMR Roll up the CM reports into one 40% 30.7% Sustainable through SRM portal and provide it to customers 22.7% Supply Chain 20% Sustainable Sustainable Environment Environment 0% Low Carbon & Energy Low Carbon & Energy Sn Au W Ta Greenhouse Gas Greenhouse Gas In 2018 investigation of PEGATRON, the ratio of suppliers that claim the materials they Sustainable Design Sustainable Design supplied to us contain con ict minerals (by category of con ict minerals) Environmental Environmental PEGATRON Con ict Minerals Management Framework Protection Protection Remark: The calculation of the ratio (%) of con ict minerals is shown as belows: [(total number of suppliers Joyful Work Joyful Work PEGATRON respects human rights and keeps paying attention to this issue. We continue to using one mineral among 3TG) / (total number of suppliers using 3TG)] x100%(Tantalum, Tin, Tungsten Employment Employment share our Con ict Minerals Policy and invite our suppliers to conduct due diligence of the and Gold are collectively known as 3TG.) Relationship Relationship materials' sources of their products to ensure the metal sources of Tantalum (Ta), Tin (Sn), Attracting & Attracting & Nurturing Talent Nurturing Talent Tungsten (W) and Gold (Au) are not derived from mining in con ict regions of the Occupational Occupational Democratic Republic of the Congo (DRC), and endeavor to ful ll the responsibility of a Health & Safety Health & Safety corporate citizen. We do risk assessment and encourage our suppliers to ask non-compliant In recent years, Pegatron cooperates with customers actively to achieve 100% con ict free Employee Care Employee Care smelters or re neries in their supply chains to join the RMI-RMAP audit. As a result, the survey sourcing goal. In the future, we will be stricter in Con ict Minerals Surveys, and ask Social Care Social Care completion rate grew from 80% in 2012, continually rose to 96% in 2018 (See the line suppliers to disclose the smelters’ information completely and honestly. Furthermore, we Social Welfare Social Welfare graph). In 2018, 1,823 suppliers joined the con ict minerals survey. According to the result of will continue to advocate the con ict minerals related requirements at the supplier Community Community the analysis, 978 (compared to 2017:↓47) suppliers had indicated their products and/or conferences to achieve our purpose that we do not directly or indirectly bene t the Involvement Involvement manufacturing processes contained these 4 con ict minerals that had been provided to armed con ict groups. Appendix-Index Appendix-Index Pegatron, including Tin (Sn) which has the highest proportion of 93.4% (decreasing by 0.1% GRI content index GRI Standard Index compared to 2017), followed by gold (Au) 78.1% ( decreasing by 1.1% compared to 2017), United Nations Global United Nations Compact Index Global Compact Tungsten (W) 30.7% (decreasing by 2.3% compared to 2017) and Tantalum (Ta) 22.7% ( Sustainability Sustainability decreasing by 2.6% compared to 2017) which means the source and using rate are Development Goals Development Goals approaching to the stable stage and there are more and more suppliers who are willing to of the United Nations of the United Nations reply to the con ict minerals survey. Based on the support of suppliers, the con ict minerals 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 Customer Energy saving Cooperate with and 1. Evaluate the e ciency of Medium traditional pollution prevention and control. The worldwide shortage of resources caused Requirement measures and the learn from customers facility / equipment operation Editorial Principles Editorial Principles use of renewable to enhance energy A Word from A Word from by rapid industrialization, the vast consumption of resources and climate change cannot 2. Benchmark with best practice energy requirements conservation measures companies the CEO the CEO be ignored nowadays. As a sustainable corporation, PEGATRON responsibly faces the and renewable energy Identi cation & Identi cation & global issues including climate change, environmental protection and global warming. researches and 3. Evaluate, establish or purchase Communication Communication We issue several procedures and obey them to minimize the use of resources, perform development renewable energy Social Responsibility Commitment greenhouse gas inventory and energy conservation management in order to reduce the Extreme Plant equipment, sta Import new 1. Online/ video conference, and Low Stakeholder consumption of resources and greenhouse gas emissions. To achieve our commitment, climate commuting, delivery technologies and so on of raw materials and Communication we disclose our concepts for environmental protection and greenhouse gas reduction in methods to save 2. Evaluation and establishment shipping a ected Material Issue our PureCSR policy. traveling and of emergency response plan Identi cation transportation costs. Sustainability Development Goals As mentioned in our PureCSR policy, we value natural resources preservation, environmental Company Pro le Company Pro le protection and pollution prevention, so as to eliminate any impacts on the environment. We About PEGATRON also announce our greenhouse gas inventory and veri cation project based on the PureCSR A. Introducing ISO 50001 energy management system: Financial Performance principles in response to carbon reduction requests from our stakeholders. An international Globalization environmental management system, ISO 14001, is also in place and Pegatron is certi ed by To ensure e ective implememtation of energy management and energy conservation Arrangement third parties periodically. policy. PROTEK and PEGAGLOBE have gotten the external certi cations in 2018, and the Award List management system will also be implemented at other sites. Sustainable Sustainable Management Management Corporate Governance Corporate Governance Low Carbon & Energy B. Applying equipment or technology, recycling and management Code of Conduct Code of Conduct to achieve the Group's goal of energy and carbon reduction: Information Security Information Security Risk Management Risk Management We established long term carbon reduction goal to show the Regulatory Compliance Regulatory Compliance determination on promotion of energy saving and carbon reduction. Reduction Reduction CO2 Reduction Responsible Responsible Category Project (kWh) (Megajoule; MJ) (tCO e) Partnership Partnership 2 Customer Service PEGATRON provides solutions to global warming through eco-friendly design and clean 1. Air conditioning Sustainable manufacturing. We make great e orts on carbon reduction in product manufacturing, system- equipment Supply Chain delivery and disposal, and implement energy saving actions in daily operations. In replacement; energy Sustainable Sustainable saving design for Environment Environment addition to the direct disclosure of treasuring the natural resources in our PureCSR policy, both sides; cleaning Low Carbon & Energy we have established a long-term energy conservation and carbon reduction goal to show and prevention of bio lm; refrigeration Greenhouse Gas our determination to achieve carbon reduction. by using cooling Sustainable Design Our targets are reductions of 21 percent greenhouse gas emissions and 24 percent tower in winter Environmental electricity consumption by 2020 from 2009 levels per revenue dollar. Application season. Protection of new Joyful Work Joyful Work 2. Replacement to equipment or zero-loss Employment Employment technology/ 19,446,213 70,006,367 15,906 Relationship Relationship post-processors and For the increasingly serious problem of climate change, we analyze the risks that may be Recycling use heat recovery Attracting & Attracting & encountered and gure out how to avoid them as follows: and reuse Nurturing Talent Nurturing Talent 3. Vacuum system- Occupational Occupational Introduce vacuum Response Health & Safety Health & Safety Risk Opportunity Responded Practice Risk after equipment to Employee Care Employee Care Object Response replace vacuum Social Care Social Care Regulatory Local governments The de nition of 1. Establish greenhouse gas Low generators Social Welfare Social Welfare Requirement are increasingly laws and regulations inventory platform to collect 4. Lighting system- Community Community paying attention to can be e ectively and monitor emissions LED lighting Involvement Involvement the reduction in established in 2. Set the Group's energy saving Appendix-Index Appendix-Index greenhouse gas and response to practice and carbon reduction targets energy use GRI content index GRI Standard Index Carbon Carbon trading and The development 1. Update or replace ine cient Low Lighting and air United Nations Global United Nations Management Compact Index Global Compact trading / energy tax increase of energy e ciency equipment conditioning 12,230,245 44,028,881 9,891 energy tax in operating costs methods and operation plan Sustainability Sustainability 2. Establish a monitoring Development Goals Development Goals technologies will mecha nism for energy use of the United Nations of the United Nations help to reduce unit Note: The amount of carbon reduction was calculated based on the electricity emission factor of each site Statement Statement product costs in 2017, which was published by the competent authorities of Taiwan, China, Mexico and Czech. 27 C. Evaluating the e ciency of facilities or equipment: Editorial Principles Editorial Principles Greenhouse Gas Cooperate with external parties to evaluate the e ciency of the facilities or equipment A Word from A Word from the CEO the CEO and use them as a baseline for energy e ciency improvements. Identi cation & Identi cation & Keep Adapting and Try to Eliminate the Impacts on Communication Communication Business Continuity. Social Responsibility D. Learning from leading companies: Commitment Stakeholder In addition to arranging the non-scheduled meetings for the professionals on energy within In addition to the direct disclosure of treasuring the natural resources in our PureCSR policy, Communication PEGATRON Group, sta s in the factories were also invited to join the events to visit our commitment to long-term energy conservation and carbon reduction was disclosed by Material Issue benchmark enterprises. Through these activities, we can learn more and nd the best our chairman, TH Tung. We expect that we can contribute to global greenhouse gas Identi cation practices for the improvements of energy e ciency in the factories. reduction through our e orts. Sustainability Development Goals Company Pro le Company Pro le PEGATRON has committed to develop eco-friendly design since its inception. In response to About PEGATRON E. Application of renewable energy: 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 Financial Performance A solar power system was installed on the top oor of a facility to reduce the use of Globalization saving design for the speci c products according to customer requirements. Meanwhile, we Arrangement purchased energy. establish the internal environmental technology standards for manufacturing of green Award List products, and transform the risks of climate change into business opportunities for Sustainable Sustainable Power Generation Power Generation CO2 Reduction competition. Besides, we strive to reach the greenhouse gas reduction target at design and Management Management Category Project (kWh) (Megajoule; MJ) (tCO2e) manufacturing stages, by strengthening energy conservation and enhancing the e ciency Corporate Governance Corporate Governance Renewable Solar Power of operations, with the optimal evaluation of energy consumption and cost. Code of Conduct Code of Conduct energy System 8,531,262 30,712,542 6,864 Information Security Information Security In order to implement the greenhouse gas management of PEGATRON Group, our Risk Management Risk Management headquarter and main manufacturing centers set up the “greenhouse gas inventory Regulatory Compliance Regulatory Compliance The purchased electricity is the main source of greenhouse gas emissions in the committee” to execute the inventory management plan and identify signi cant emission Responsible Responsible PEGATRON Group. We not only produce products with lower energy consumption, but Partnership Partnership sources as well as draft the reduction target and plan. For the purpose of reducing the also implement several energy saving actions in our daily operations (such as power Customer Service impacts from business, production, activities and services, through the management usage management, illumination and air-conditioning management) to enhance the Sustainable process we take our responsibility for environment protection. Supply Chain e ciency of electricity use at non-manufacturing area. Sustainable Sustainable PEGATRON conducts “Greenhouse Gas Inventory” according to the Greenhouse Gas Environment Environment Protocol and our internal procedure “Management Procedure for Greenhouse Gases (GHG) Low Carbon & Energy Emissions Inventory “. We also obey ISO 14064-1 standard to disclose and verify GHG Greenhouse Gas Analysis of electricity use in PEGATRON (2016-2018): emissions. The company's greenhouse gas emission inventory covers direct emissions Sustainable Design (scope 1) and indirect emissions from purchased electricity (scope 2). The inventory results Environmental Electricity usage (GJ) Electricity usage per million NTD in revenue (GJ/million NTD) Protection are veri ed by a third party and the veri cation statements are publicly disclosed on the Joyful Work Joyful Work company’s website. The external veri cation of 2018 greenhouse gas emissions was 3,000,000 3.00 Employment Employment 2,754,376 conducted in June, 2019. The total quantity of greenhouse gas emissions in 2018 was Relationship Relationship 2.51 2,634,948 677,411 tCO2e, and the proportion of the six greenhouse gas emissions from operation Attracting & Attracting & 2,500,000 2.50 shows in the following table. The main source of emissions in 2018 was electricity usage and Nurturing Talent Nurturing Talent 2,233,756 2.21 2.06 its ratio was 90.41%. Occupational Occupational 2,000,000 2.00 Health & Safety Health & Safety 1.93 Employee Care Employee Care 1,500,000 1,348,664 1.50 Social Care Social Care Social Welfare Social Welfare Pie chart of the six main greenhouse gases: 1,000,000 1.00 Community Community CO2 tons CO2e 96.17% Involvement Involvement ● 500,000 0.50 Appendix-Index Appendix-Index SF6 tons CO2e 0.00% GRI content index GRI Standard Index ● 0 0.00 PFCs tons CO2e 0.00% United Nations Global United Nations ● Compact Index Global Compact 2009 2016 2017 2018 HFCs tons CO2e 0.68% Sustainability Sustainability ● Note: The data in 2009 (Base year) has been recon rmed. Please refer to GRI content index in the Appendix Development Goals Development Goals N2O tons CO2e 0.02% of the United Nations of the United Nations for more information. ● Statement Statement CH4 tons CO2e 3.14% ● 28 Proportions of GHG emission of PEGATRON in past three years Editorial Principles Editorial Principles Sustainable Design A Word from A Word from the CEO the CEO 2009 (Base year) 2016 2017 2018 Identi cation & Identi cation & We care the society, treasure the environment and make Communication Communication 22,617.26 40,696.38 43,688.79 38,828.61 Scope 1 (tCO2e) everything simpler by design. Social Responsibility 327,497.39 516,063.11 610,190.29 638,582.53 Commitment Scope 2 (tCO2e) Stakeholder 350,114.65 556,759.49 653,879.08 677,411.14 As a professional DMS, PEGATRON designs innovative and high-end technology electronics Communication Total Emission(tCO2e) products, with the concept of economic, society and ecology sustainability. We focus on Material Issue the enhancement of product energy e ciency to respond to the issues of global warming Identi cation Note: The data in 2009 (Base year) has been recon rmed. Please refer to GRI content index in the Appendix for more information. and limited natural resources, as well as to improve energy e ciency of products. In order Sustainability Development Goals to reduce the impacts on the environment and lower or eliminate the negative e ects on Company Pro le Company Pro le health and safety in design and manufacturing stages, we control the usage of hazardous About PEGATRON chemicals and use recyclable materials according to international environmental protection Financial Performance Greenhouse gas emissions in PEGATRON (2016-2018) : regulations and customer requirements. Globalization GHG Emissions (metric tons CO e) GHG Emissions per million NTD in revenue (metric tons CO e/million NTD) Arrangement 2 2 “PEGATRON continually pursues improved product quality through innovation, e cient Award List manufacturing, eco-friendly design, on-time delivery, reliable service, lean process and Sustainable Sustainable 653,879.08 677,411.14 comprehensive training to gain customer satisfaction and exceed customer expectations” Management Management 700,000 0.65 0.7 is our Green Management System’s (PureGMS) policy. Our product quality management Corporate Governance Corporate Governance 556,759.49 600,000 0.6 activities are based on ISO 9001 Quality Management System. Our QC 080000 Code of Conduct Code of Conduct 0.55 0.51 management system was developed to ensure all our products under control to avoid Information Security Information Security 500,000 0.5 hazardous substances used or product contained from the stage of customers’ requests Risk Management Risk Management 0.48 400,000 350,114.65 0.4 to the stage of products delivery. Meanwhile, we have established GP management Regulatory Compliance Regulatory Compliance Responsible Responsible 300,000 0.3 system and obtained certi cations of TL 9000, IATF 16949 and ISO 13485 to meet speci c Partnership Partnership customer requirements. 200,000 0.2 Customer Service Sustainable 100,000 0.1 PEGATRON tracks and summarizes all international environmental regulations including Supply Chain hazardous substances, green marks, environmental labels and other information. Relevant Sustainable Sustainable 0 0 units report the regulatory compliance and response measures on the regularly Steering Environment Environment 2009 2016 2017 2018 Low Carbon & Energy Committee (SC) meetings. The latest environmental regulations are also communicated Note 1: The data of 2018 has been veri ed by the third party. The Veri cation Statement can be accessed internally through the monitoring platform for regulations. PEGATRON had no case of Greenhouse Gas on the Company’s website. http://cht.pegatroncorp.com/csr/view/id/1 Sustainable Design noncompliance leading to nes with regulations concerning about the health and safety Note 2: The base year is 2009. Environmental impacts or information labeling by products and services in 2018. Protection Joyful Work Joyful Work Employment Employment Relationship Relationship PEGATRON has actively participated in the CDP (Carbon GP Attracting & Attracting & Disclosure Project) since 2009, responding to its greenhouse gas TL 9000 Speci c Product Quality Management System/ Nurturing Talent Nurturing Talent emissions, climate related investment risks and opportunities ISO 13485 Speci c Customers' Green Product Management System Occupational Occupational through the questionnaire. We will continue to join international IATF 16949 Health & Safety Health & Safety Employee Care Employee Care projects and initiatives in the future to show our attention and e orts on the relevant issues. Hazardous Substances Process Management System Social Care Social Care QC 080000 Social Welfare Social Welfare Community Community Involvement Involvement Appendix-Index Appendix-Index GRI content index GRI Standard Index ISO 9001 Quality Management System United Nations Global United Nations Compact Index Global Compact Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 29 Hazardous Substances Process Management Editorial Principles Editorial Principles █ eGreen Hazardous A Word from A Word from PEGATRON has professional experience in the integration of design with production and System IQC Substances the CEO the CEO service. In addition to green supply chain reinforcement, we also provide customers with Identi cation & Identi cation & QC080000 creative energy saving and hazardous substances free (HSF) product design concept to PureGMS HSF PureGMS HF/LH Communication Communication Hazardous HSF Technical Technical HSF facilitate the introduction of green products. We meet and implement customers’ green PQC Substance Process Social Responsibility Supplier Standard Standard part Commitment requirements as well as legal requirements at the stages of design and material selection. Management System International Stakeholder The prohibited substances include substances with serious environment impact which Customer Green Product Communication Standards OQC are restricted to be used according to EU RoHS or REACH. In addition, further control of Regulations Material Issue more than 50 chemical substances on ozone depletion substances and radioactive Identi cation materials has been implemented. The restrictions on hazardous substances contained in Sustainability batteries and packing materials have also been introduced into PEGATRON HSF Development Goals PEGATRON considers the trend of global environmental regulations is stricter for the management system in accordance with legislation and customer requirements. To align Company Pro le Company Pro le hazardous substances process management. Therefore, to improve human health and safety with customers’ green product requirements, we analyze customers’ requirements and About PEGATRON and reduce the impacts on environment, PEGATRON not only sets up the hazardous the current international green product regulations, and integrate them into our HSF Financial Performance substances reduction program within all components yearly but also monitors global Globalization management system gradually to realize corporate social responsibility on green product. Arrangement environmental regulations periodically in order to comply with the international Award List environmental regulations in time. In addition, through bi-weekly internal PureGMS Steering Sustainable Sustainable Committee Meetings, the status of important green product regulations can be reviewed and Management Management PEGATRON’s Restriction Scope of Hazardous Substances the e ective actions are given based on the instructions by the relevant functional leaders in Corporate Governance Corporate Governance the committee. Besides, in order to enhance the competency of all employees on HSF Code of Conduct Code of Conduct management system, new employees need to complete HSF Basic, Intermediate or Information Security Information Security Advanced training courses based on di erent levels of works (see Table 1). The material of HSF Risk Management Risk Management RoHs refresher training course is reviewed every year in accordance with the international green Regulatory Compliance Regulatory Compliance product regulations and standards which were updated in the past year. All employees shall Responsible Responsible Pb/Cd/Hg/Cr6+/P participate in the refresher training courses in the current year based on their job functions. Partnership Partnership BBs/PBDEs/DEHP/ The targets of the completion rate of HSF related training courses are achieved every year (see Customer Service International BBP/DBP/DIBP requirements REACH Figure 2). It helps us to understand the changes of new international regulations on green Sustainable Supply Chain J-Moss products and implement HSF management system e ectively. Generally speaking, Annex XVII Sustainable Sustainable California Proposition65 PEGATRON always follows the trend of international regulations in time and cooperates with Environment Environment China RoHS Annex XIV Customer customers to identify the environmental requirements so as to ensure the compliance. PPWD(94/62/EC) HF/LH Requirements Low Carbon & Energy 2006/66EC Greenhouse Gas Br (Bromine) Pegatron Sustainable Design Cl (Chlorine) Other customers’ HSF e-learing course: Environmental substance speci cations Protection requirements Joyful Work Joyful Work PAHs Basic Course Intermediate Course Advanced Course Employment Employment Ozone • Introduction of internationally • The ag coding standard of • Introduction of HSF parts Relationship Relationship Radioactive 1 environmental regulations 2 green parts 3 approval Attracting & Attracting & DMF • Introduction of PureGMS • Introduction of SPT-00001 • Introduction of e-Green platform Nurturing Talent Nurturing Talent PureGMS HSF technical standard Occupational Occupational Health & Safety Health & Safety To meet the international environment regulations and customer requirements, PEGATRON has Employee Care Employee Care issued PureGMS HSF Technical Standard and PureGMS Low Halogen/Halogen-Free Technical Social Care Social Care Standard. We tailor customers’ green product speci cations upon requests, and include them in 2018 HSF Training: Social Welfare Social Welfare Reach rate Target our component approval process. All components need to follow Pegatron’s or Customers’ Community Community 100% Involvement Involvement requirements of environmental product speci cations in order to reduce the hazardous 80% Appendix-Index Appendix-Index substances of products in design stage of life cycle e ectively. To make sure that all products can 60% GRI content index GRI Standard Index meet the global regulations and customer requirements of the hazardous substances, multiple 40% United Nations Global United Nations phases is used to control the use of hazardous substances. 20% Compact Index Global Compact To assess the safety and health impacts of product life cycles for employees and users, we 0% Sustainability Sustainability Development Goals Development Goals conduct regular internal and external audits of QC 080000 hazardous substance free Basic course Intermediate Advanced Re-training Re-training of the United Nations of the United Nations management system every year to ensure the implementation and progress towards course course course A course B Statement Statement continuous improvement. Note All HSF courses counted until the end of year 2018, the completion rates are up to 99% or more. ： 30 Environmental Labelling Sustainable packaging Editorial Principles Editorial Principles █ █ A Word from A Word from All products designed and manufactured by PEGATRON conform to customer We include resource conservation, reusability and recyclability in our packing the CEO the CEO requirements, international regulations and related regulations in sales territories and are design assessments. Meanwhile, we also consider minimizing the environmental Identi cation & Identi cation & veri ed accordingly. The environmental information is marked on the product based on impacts of packing materials and manufacturing processes as well as the nal Communication Communication the demand. Since the raise of the environmental protection movement in Europe and disposal of no longer needed packing materials during package design. Social Responsibility Commitment United States in the 1970s, the concept of green consumption has been promoted, and its Stakeholder environmental labeling campaign has also come into being. Through the rule of Eco-friendly Considerations: Communication environmental labelling, the trend aims to awake consumers to choose products with We take green concept into account when designing the package and using the Material Issue recyclable, low-pollution and resource-saving products to improve environmental quality. Identi cation raw packing materials. In recent years, the trend of environmental labeling in various countries has gradually Sustainability Development Goals expanded the scope of social responsibility. In addition, to pay attention to the three R Company Pro le Company Pro le requirements of the product side, the company also needs to ful ll its social responsibilities. Use renewable raw materials. About PEGATRON PEGATRON is in line with the world trend and hopes to be more competitive. From design Financial Performance to manufacturing, including waste reduction, recycling and other related requirements, Globalization PEGATRON will continue to work hard to ful ll the social responsibility code of conduct. Comply with EU Packing Arrangement For the customers' part, it will actively cooperate with the green marketing needs of and Packing Bottom separators to Award List customers' products. For meeting customer requirements, the e ort of the product Waste Directive substitute foam materials Sustainable Sustainable environmental labeling in these years is shown in the following table. In the future, we will Management Management continue to meet the legal requirements, customers' green product requirements and Corporate Governance Corporate Governance ful ll the obligations of corporate citizenship. Single color Prohibiting the use of Code of Conduct Code of Conduct packing materials polyvinyl chloride Information Security Information Security Packing Materials Risk Management Risk Management Regulatory Compliance Regulatory Compliance Product Eco Label: Responsible Responsible Partnership Partnership Total Eco Label Customer Service Sustainable 700 654 The packing design is optimized to reduce the use of materials. Supply Chain 600 Sustainable Sustainable 519 Environment Environment 500 Low Carbon & Energy 400 shape cover design is changed to single sheet to reduce the process “ㄇ” Greenhouse Gas 300 and prevent the contamination in manufacturing. Sustainable Design Cover 200 Environmental 148 Packa- Protection 100 Streamline packaging design to lower the use of materials. Packing ging Joyful Work Joyful Work 0 2016 2017 2018 Design Employment Employment Paper Lighten the weight of packaging paper to reduce around 40% of material usage. Relationship Relationship Ship- Attracting & Attracting & ment Nurturing Talent Nurturing Talent The focus of our research and development of electronic products is to save energy. Change the stacking array and extend the space for shipment to reduce Occupational Occupational From the beginning of product development, we consider the energy related the emissions from transportation and decrease the use of materials. Health & Safety Health & Safety Employee Care Employee Care requirements of di erent nations in the design phase. In order to enhance power Social Care Social Care consumption e ciency, we not only meet current requirements of energy use, but also Social Welfare Social Welfare anticipate customers’ needs and set targets according to the requirements of the latest Community Community version of Energy Star. Involvement Involvement Appendix-Index Appendix-Index In October 2011, to ensure electronic products manufactured by PEGATRON could GRI content index GRI Standard Index meet the requirements, we built the energy consumption laboratory in our United Nations Global United Nations Compact Index Global Compact headquarter in compliance with the SMTL (Supervised Manufacturers Testing Sustainability Sustainability Laboratory) program, and certi ed by UL (Underwriters Laboratories Inc.), which was Development Goals Development Goals accredited by US EPA, as well as recognized by TUV SMTL in 2014. of the United Nations of the United Nations Statement Statement 31 Product Safety Regulation Waste Handling & Disposal Editorial Principles Editorial Principles █ █ A Word from A Word from To ensure the lives and property safety of users, many countries have set safety and The challenge of waste handling is one of the major environmental aspects in PEGATRON the CEO the CEO electromagnetic compatibility speci cations and testing standards for a variety of Group. As a professional DMS company, we follow our internal procedures to control Identi cation & Identi cation & products to protect the rights of customers and end users, PEGATRON has wastes produced at each stage. Almost all wastes are treated through recycling ways. Communication Communication established an internal veri cation process according to the national standards and However, for domestic waste, since we have screened almost all recyclable waste, the Social Responsibility regulatory requirements. Through the standardized process, our RD conducts overall major handling method for domestic waste is incinerated. PROTEK has promoted a Commitment assessments and testing for products accordingly. In addition, we also follow related zero-waste to land ll project, and achived “100% diversion, with 4% thermal processing Stakeholder Communication safety and EMC speci cations and requirements at the manufacturing stage. with energy recovery”, which was veri ed by third-party in November 2016. We’ll continue Material Issue PEGATRON had no violation case or penalty by government due to product safety to devote to recycling treatment in the future. Identi cation related issues in 2018. Sustainability The principle of waste management in PEGATRON is to minimize the importation of raw Development Goals International regulations regarding product safety are reviewed in the regular management Company Pro le Company Pro le materials. In addition to source reduction, we pay attention to recycling packing materials review meetings. If there is any update, we will instantly notify relevant personnel to ensure to improve the re-utilization rate. Furthermore, we have set waste management unit in About PEGATRON Financial Performance the regulatory compliance. We provide regular trainings for relevant personnel, including each site to make an overall plan for daily operations and waste statistics, and help other Globalization safe operating standard introduction, safety inspection introduction, plastic material units to implement waste reduction and recycling. Arrangement selection guidelines, and materials and parts safety requirements to ensure that our Award List employees have the necessary skills when operating the product safety activities. Sustainable Sustainable Management Management To protect the health and safety of users’ lives and properties, and safeguard the interests Waste Generation in PEGATRON from 2016 to 2018: Corporate Governance Corporate Governance of them, PEGATRON performs internal safety audits to verify the e ectiveness of the Code of Conduct Code of Conduct quality system. According to the internal regulations, we also develop the abnormal Waste generation (metric tons) Information Security Information Security handling process of product safety. When the product safety performance is against the Waste generation per million NTD in revenue (metric tons /million NTD) Risk Management Risk Management requirements during the procurement, manufacturing or inspection, the identi cation, Regulatory Compliance Regulatory Compliance isolation and disposal of it shall be taken immediately and the relevant units shall be 0.08 86,000 0.07 Responsible Responsible informed to retest the repaired or reworked products. 84,072 Partnership Partnership 0.07 84,000 Customer Service 0.06 82,000 Sustainable 0.06 0.06 Supply Chain 80,000 Sustainable Sustainable 0.05 Environment Environment 0.04 78,000 Low Carbon & Energy Environmental Protection 76,000 Greenhouse Gas 0.03 77,128 Sustainable Design 73,938 74,000 Environmental The earth gives us everything we need. 0.03 Protection Now, it’s time to protect it. 72,000 Joyful Work Joyful Work 0.01 70,000 Employment Employment Sustainable environment is a long-term goal of PEGATRON Group. For products, we 0.00 Relationship Relationship 68,000 merged green and environmental friendly concepts into our product design. In daily Attracting & Attracting & 2016 2017 2018 Nurturing Talent Nurturing Talent operations, we comply with international and local regulations to reduce the impacts on Occupational Occupational the environment. This philosophy is disclosed in our PureCSR policy and implemented in Health & Safety Health & Safety our daily environmental management. Beyond this, we take the natural ecosystems into Employee Care Employee Care consideration when building the landscape of each site. Social Care Social Care Recycling waste: 96% Social Welfare Social Welfare Community Community The company sets up the grievance mail box and a special line for external stakeholders Domestic waste: 2% 2% Involvement Involvement to provide suggestions or make appeals. We also set internal communication channels 96% Appendix-Index Appendix-Index for employees to utilize. Each site has dedicated unit to deal with environmental 2% Hazardous waste: 2% GRI content index GRI Standard Index complaints and is responsible for the implementation of environmental protection, United Nations Global United Nations including regular assessments of compliance with local regulations, write management Compact Index Global Compact procedures and commission with third parties for testing so as to reduce environmental Sustainability Sustainability pollution and the impacts of the organization’s activities. There was no signi cant Development Goals Development Goals of the United Nations of the United Nations violation of environmental laws and regulations in 2018. (Signi cant violation is de ned Statement Statement as being ned for over 1 million NTD.) 32 Generation of hazardous wastes in PEGATRON from 2016 to 2018 Hazardous and Non-hazardous waste generation analysis in each site: Editorial Principles Editorial Principles Hazardous waste generation (metric tons) A Word from A Word from Hazardous waste generation per million NTD in revenue (metric tons /million NTD) Total weight of Total weight of the CEO the CEO hazardous waste (tons) non-hazardous waste (tons) Identi cation & Identi cation & 2,500 0.0020 Communication Communication 0.0018 Taiwan China Mexico Czech Taiwan China Mexico Czech Social Responsibility 2,000 Commitment 2,100 0.0015 Stakeholder 0.0012 0.0011 Reuse 0 0 0 0 0 0 0 28 Communication 1,500 Recycling 66 740 0 0 552 65,737 61 525 Material Issue 1,392 1,454 0.0010 Identi cation 1,000 Recovery 0 2 0 0 0 7,317 0 0 Sustainability Composting 0 0 0 0 0 0 19 0 Development Goals 0.0005 500 Company Pro le Company Pro le Incineration 0 594 0 0 261 442 0 121 About PEGATRON Land ll 0 0 0 1 0 589 5 18 0 0.0000 Financial Performance 2016 2017 2018 On-site storage 0 12 0 0 0 0 0 0 Globalization Arrangement Other 0 35 4 0 0 0 0 0 Award List Sustainable Sustainable Management Management Generation of recycling waste in PEGATRON from 2016 to 2018 To make sure all recyclable hazardous industrial wastes are processed in compliance with Corporate Governance Corporate Governance local regulations and in an e cient manner, each site has to follow our internal procedures Code of Conduct Code of Conduct to coordinate waste handling process. We verify each waste disposal vendor’s quali cation Information Security Information Security Recycling waste generation (metric tons) Recycling waste generation per million NTD in revenue (metric tons /million NTD) in a transparent, fair and impartial manner. Through this process, we are able to select the Risk Management Risk Management lowest risky company to prevent any environmental impact from improper disposal of Regulatory Compliance Regulatory Compliance 78,000 0.0700 wastes. All hazardous industrial wastes are handled in compliance with local regulations. Responsible Responsible 76,472 0.066 Partnership Partnership 76,000 0.0650 Customer Service 74,000 0.059 74,219 0.0600 Sustainable 72,000 0.055 0.0550 Supply Chain 70,000 70,964 Water Resource Sustainable Sustainable Environment Environment 68,000 0.0500 █ Water resource is not a signi cant environmental aspect for PEGATRON Group. However, Low Carbon & Energy 2016 2017 2018 water shortage caused by climate change and the large variation of rainfall distribution is Greenhouse Gas Note: The data in 2017 has been recon rmed. Please refer to GRI content index in the a global issue. Our principle for water resource management adopts two measures. First, Sustainable Design Appendix for more information. we devote ourselves to the reduction of water use and improve internally on how we Environmental Protection handle wastewater. Secondly, we pay attention to promoting the water saving concept Joyful Work Joyful Work into our supply chain. PEGATRON engages in enhancement of the e ciency of water Employment Employment resource usage and reduction of environmental impacts caused by industrial Relationship Relationship Generation of domestic waste in PEGATRON from 2016 to 2018 development to meet the international environmental protection trend. We initiate Attracting & Attracting & Domestic waste generation (metric tons) green value and implement corporate social responsibility through actions for Nurturing Talent Nurturing Talent sustainable cycle and the concept of coexistence for economic growth and Occupational Occupational Domestic waste generation per million NTD in revenue (metric tons /million NTD) Health & Safety Health & Safety environmental protection. For reduction from source, we focus on the improvements of 6,000 0.0050 facilities and publicizing water resource treasuring in each site. Employee Care Employee Care 5,500 0.005 Social Care Social Care 5,000 0.0040 To enhance the e ciency of water use, we adopt prevention control techniques of water Social Welfare Social Welfare 4,000 Community Community 0.0030 resources. The water conservation is part of resource utilization control program as well. Involvement Involvement 3,000 Water recycle e ciency is our target. We periodically review water conservation Appendix-Index Appendix-Index 0.0020 performance for continuous improvement. Currently, the main source of water for each 2,000 0.011 0.011 GRI content index GRI Standard Index 1,583 1,455 site is tap water. We actively promote water conservation activities, and each site has United Nations Global United Nations 1,000 0.0010 developed and implemented control measures for water conservation. Water resource Compact Index Global Compact management and pollution prevention should start from water saving. All sites of 0 0.0000 Sustainability Sustainability PEGATRON have set up and implemented several control procedures for water saving Development Goals Development Goals 2016 2017 2018 of the United Nations of the United Nations and exploring possible ways of water recycling in each kind of water utilization facilities. Note: The data in 2017 has been recon rmed. Please refer to GRI content index in the Statement Statement Appendix for more information. 33 Water Resource Saving Measures Total Amount of Water Withdrawal in 2018 by Location Editorial Principles Editorial Principles A Word from A Word from the CEO the CEO Location Taiwan China Mexico Czech Identi cation & Identi cation & Communication Communication Publish posts and slogans Labels on water use devices for Total Amount of Social Responsibility Water Withdrawal Commitment about water conservation. information of repair notice. 237,924 7,315,748 5,119 16,334 (cubic meters) Stakeholder 3 4 Communication Water saving training Induction faucets and ushing Material Issue The major wastewater of PEGATRON in each site is domestic wastewater. In order to programs through activities. 2 5 devices for urinal bowls. Identi cation ensure the water quality meet the related wastewater protection regulations, we Sustainability issued the Water Control Management Procedure to ensure the wastewater quality Development Goals complies with local regulatory requirements. The periodic monitoring of wastewater Company Pro le Company Pro le Install water saving Choose water and 1 6 quality continues to be conducted by the 3rd parties. The monitoring subjects are About PEGATRON devices in faucets. energy saving devices. identi ed by professionals according to local legal requirements. All monitoring Financial Performance O ce results in 2018 conformed to the standards and the wastewater was discharged to Globalization Arrangement the sanitary sewer systems. Award List Sustainable Sustainable Management Management Individual water meter Corporate Governance Corporate Governance Wastewater generation in PEGATRON from 2016 to 2018 for water use. Code of Conduct Code of Conduct Introduce the condensed water recycling system for Information Security Information Security Wastewater generation (cubic meters) Risk Management Risk Management chillers and enhance the 3 Water run-o warning devices Wastewater generation per million NTD in revenue (cubic meters /million NTD) Regulatory Compliance Regulatory Compliance e ciency of water 2 4 for water pools and water tanks. Responsible Responsible curtain pumps. 7,000,000 5.47 6.00 Partnership Partnership 5.04 6,000,000 6,531,831 5.00 Customer Service 4.10 5,837,507 Sustainable Optimal design of water 5 Arrangement of 5,000,000 Supply Chain consumption in chillers. 1 irrigation process. 4,970,821 4.00 Sustainable Sustainable Factory 4,000,000 Environment Environment 3.00 3,000,000 Low Carbon & Energy 2.00 Greenhouse Gas 2,000,000 Sustainable Design 1,000,000 1.00 Environmental Protection 0 0.00 Joyful Work Joyful Work Water usage in PEGATRON from 2016 to 2018 2016 2017 2018 Employment Employment Relationship Relationship Water usage (cubic meters) Attracting & Attracting & Water usage per million NTD in revenue (cubic meters/million NTD) Nurturing Talent Nurturing Talent We have a dedicated wastewater analysis laboratory to monitor the quality of wastewater at the East China Operation Center. The instruments for checking water quality are Occupational Occupational 6.92 Health & Safety Health & Safety 10,000,000 8.00 calibrated periodically to make ensure the accuracy of monitoring. We improved the Employee Care Employee Care 5.89 wastewater treatment system to ensure water quality by taking the following measures: 8,000,000 Social Care Social Care 5.65 6.00 8,256,137 7,575,125 1. Improving the facilities to enhance the treatment e ciency of oils. conducting daily Social Welfare Social Welfare 6,824,538 6,000,000 inspection and maintenance of sewage handling facilities to ensure the quality Community Community 4.00 Involvement Involvement 4,000,000 of wastewater. Appendix-Index Appendix-Index 2.00 2. For the project of treatment of canteen wastewater with oils, we regulate the speci cations GRI content index GRI Standard Index 2,000,000 of grease interceptor, and perform the daily cleaning and maintenance to ensure the United Nations Global United Nations 0 0.00 quality of wastewater. Compact Index Global Compact 2016 2017 2018 Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 34 Green Transportation Editorial Principles Editorial Principles █ A Word from A Word from In order to save energy and increase the e ciency of tra c / transport usage, we continue to promote green transportation and business communications. the CEO the CEO Identi cation & Identi cation & Communication Communication Social Responsibility Commitment 【Transportation of Goods】 Stakeholder Communication Material Issue Identi cation Sustainability Development Goals Company Pro le Company Pro le Lower the weight of products To meet environmental protection Centralized transportation to For overseas transportation, we From 2020, the International About PEGATRON and packing materials to reduce and carbon reduction policy, reduce the times of cooperate with the shipping Maritime Organization has set a Financial Performance the fuel consumption. marine transportation is transportation. companies which are willing to limit of 0.50% m/m on the sulfur When selecting suppliers, the considered rst so as to reduce reduce the vessel speeds. For content of the fuel used on Globalization Arrangement locations of the suppliers are carbon emissions. Direct ights ground transportation, ocean shipments. Our taken into account to improve are preferred for air transportation transportation by trucks will be transportation company Award List the transportation e ciency. to reduce tra c time and distance. replaced by railway system which is complies with regulation to Sustainable Sustainable more environmental friendly. reduce sulfur oxide emissions. 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 【Employee Transportation】 【Business Exchange】 Sustainable Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Greenhouse Gas Sustainable Design Daily commuting: Using video / voice / live Environmental Protection In Taiwan, more than half of communications to replace employees commuting by public face to face meetings is our Joyful Work Joyful Work transportation to the factories and active strategy. Employment Employment corporate headquarters. Our Relationship Relationship company also provides shuttle buses Attracting & Attracting & between di erent working places. 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 Standard Index United Nations Global United Nations Compact Index Global Compact Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement Navigate Joyful Working the To develop the philosophy of “Priest” and “Parents”, Future and respect the characteristics of each employee. 36 PEGATRON Group’s philosophy is based on a work-life balance of "Joyful Work, Happy primary consideration is the candidates’ skills and abilities to do the jobs. Our recruitment Editorial Principles Editorial Principles Life". We encourage our employees to ful ll work duties with a positive attitude and to policy is speci ed clearly to ensure the fairness of recruitment, employment, A Word from A Word from increase their potential by welcoming challenges, working beyond expectations and by development, and performance assessment and rewards for both applicants and the CEO the CEO constantly improving themselves, while working within a team environment. When all employees. The total members of full-time non-managers were 6,987 in 2018 (83 down Identi cation & Identi cation & team members work together to achieve excellence, all employees can enjoy a “Happy compared to 2017) in Taiwan. The company provides the same working conditions Communication Communication Life”, which is PEGATRON Group’s ultimate goal. under an identical management. For the management of internal sta , the work Social Responsibility Commitment category (including operator, assistant engineer/ administrator, senior engineer/ Stakeholder administrator, deputy section manager/ specialist, section manager, manager, etc.) Communication corresponds to the required capacity and performance as the basis. There is no unfair Material Issue treatment because of gender, age, region, religion, nationality or political party. Under Identi cation Employment Relationship the spirit of appraisal and promotion system, the sta with the same ability have the Sustainability Development Goals same opportunities for promotion. 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 Financial Performance To promote the protection of human rights and prevent human rights violations, in their position, have the same promotional opportunities. Over 65% of our managers Globalization PEGATRON complies with labor laws and internationally recognized basic labor Arrangement are local people in major operation sites so as to practice the concept of talent rights to protect employees’ lawful rights and interests. Moreover, we also develop localization. Furthermore, we proactively employ disabled people and provide Award List the policies and procedures to protect the basic human rights of employees. Sustainable Sustainable adequate job opportunities for disadvantaged groups to respond to government policy Management Management and achieve hiring localization. Corporate Governance Corporate Governance Code of Conduct Code of Conduct Employee Pro le Information Security Information Security █ Risk Management Risk Management PEGATRON respects equal rights and anti-discrimination of each candidate’s gender, Regulatory Compliance Regulatory Compliance religion, race, national origin or political party. When we recruit new employees, our Responsible Responsible Partnership Partnership Customer Service Sustainable Supply Chain PEGATRON annual manpower structure in 2018 Sustainable Sustainable Environment Environment Permanent Temporary Low Carbon & Energy Gender Age Greenhouse Gas Total 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 7,159 4,818 2,341 1,798 5,027 334 4,732 1,959 0 0 82 379 4 3 Employment Relationship China 163,923 113,994 49,929 129,063 34,809 51 2,475 1,631 0 0 112,005 47,812 0 0 Attracting & Nurturing Talent Mexico 118 78 40 40 66 12 65 24 0 0 13 16 0 0 Occupational Health & Safety Czech 1,795 747 1,048 697 794 304 262 255 1 2 476 706 8 85 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 Standard Index The proportion of management level locally (%) 98.9% 77.1% 68.8% 87.5% United Nations Global United Nations Compact Index Global Compact Sustainability Sustainability Notes: (1) Ratio (%) = total number of management members who are hired from the local community / total number of management members who are hired at the site. Development Goals Development Goals of the United Nations of the United Nations (2) The management is the employees who have the management responsibilities. Statement Statement (3) The local people are the employees who were born or live in local country, but the scope of Czech Republic is extended to European Union (EU). 37 Labor Rights corporal punishment, mental or physical oppression and other kinds of discrimination in the Editorial Principles Editorial Principles █ workplaces. In addition to the clear rules and policies (e.g. Work rules, Prevention, Correction, A Word from A Word from In order to clearly de ne the rights and obligations between Labor-Management to improve Complaint and Enforcement of Sexual Harassment for workplace Procedure), we also set up the CEO the CEO the management system, and let them work together and seek business development, an email mailbox and a hotline which employees can use to report sexual harassment. There Identi cation & Identi cation & PEGATRON regulates the labor rights related requirements based on the Code of Conduct of is a strictly con dential rule in place to protect the whistleblowers. PEGATRON will not Communication Communication Responsible Business Alliance (RBA) and local labor regulations, as well as respects human rights retaliate against any employee who claims a complaint. All changing terms of employment Social Responsibility Commitment and follows the relevant norms of labor rights. Through the operation of PureCSR management have been duly noti ed according to regulatory requirements and the information is also Stakeholder system, we formulate programs to ensure that employees' rights can be respected. The provided immediately through EIP websites, emails, TVs or bulletins, etc. Communication implementation guidelines relating 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 labor and Protect young workers Complaints mailbox for sexual harassment and workplace violence： Company Pro le Company Pro le 【 】 [email protected] The appointment and recruitment processes of PEGATRON are in accordance with local About PEGATRON regulations, and comply with the requirements of RBA Code of Conduct. We set the Financial Performance minimum age requirements and develop the identi cation system and control measures Globalization Respect for freedom of association and Protection of labor rights Arrangement to ensure that the employment of child labors is strictly prohibited at each site. We also 【 】 Award List develop the Child Labor Remediation Procedure to respond to and commit the measures In order to comply with local regulations, we respect that each employee has the rights Sustainable Sustainable taken when abusing child labor. For young workers under the age of 18, we promise not to participate in unions, collective bargaining and peaceful assemblies. Simultaneously, Management Management to let them be responsible for the works which may endanger their health or safety, and we also respect the right of non-participation. Nearly 95% of employees have been Corporate Governance Corporate Governance provide the appropriate support and trainings. covered by collective negotiation agreements. We not only take into account the interests Code of Conduct Code of Conduct of both sides, but also protect the rights of employees through an open and equitable Information Security Information Security consultative mechanism. If the company has any major operational change may a ect Risk Management Risk Management Prohibition of discrimination and Provide fair remuneration employees, the employees will be informed in advance based on labor regulations in Regulatory Compliance Regulatory Compliance 【 】 Taiwan. The employees and their representatives at overseas sites will also be informed at Responsible Responsible PEGATRON prohibits any forms of harassment and unlawful discrimination. We prohibit least four weeks before the change come into e ect. Besides, there is no union organized Partnership Partnership any discriminate in employment because of race, color, age, gender, sexual orientation, in Taiwan, but the labor and management meeting is held quarterly to ensure the Customer Service ethnicity, gender identity and expression, disability, pregnancy, religion, political a liation, interests of employees. Rules for labor and management meeting are also set and posted Sustainable union membership, veteran status, genetic information and marital status during the Supply Chain on the company's website for colleagues to review. Most overseas sites have employee’s employee hiring and working. Meanwhile, we prohibit forcing workers or potential workers Sustainable Sustainable representative meetings or unions to e ectively promote the relationship between labor Environment Environment to accept discriminatory health checkups or physical examinations. We follow the principle and management as well as ensure the rights for exercising the freedom of association Low Carbon & Energy of pay equity and regularly review the market information to set up the competitive pay and collective bargaining. The West China Operation Center has established the Greenhouse Gas levels, there is no di erence because of gender, race, religion, class and so on. The average employee’s representative meeting and the meeting is held in November each year Sustainable Design salary of all non-managers was NTD 1,210,000 in 2018 (NTD 3,000 down compared to 2017) according to the management procedure. The meeting agenda will be collected by Environmental in Taiwan. In addition, our salaries and bene ts conform to local regulations and industry employee representatives before meeting. Protection standards and the deductions of wages due to disciplinary purposes are prohibited. Joyful Work Joyful Work Employment Location Channel for collective bargaining Relationship Prohibition of forced labors and Freedom of choice of occupation Attracting & Taiwan Labor-Management Meeting Nurturing Talent 【 】 PEGATRON has the labor contract with employees based on local laws, and the hiring China Unions or Employees' Representative Meeting Occupational Health & Safety relationship is established based on mutual agreements in the contract and prohibits the Mexico Unscheduled Meeting Employee Care use any forced labors. In addition to against illegal human tra cking and slavery, we also Czech Union Social Care Social Care prohibit forced or compulsory labor. Control measures for agencies are also carried out Social Welfare Social Welfare and compliance with local regulations is included in the contracts signed with the Community Community agencies. PEGATRON complies with the requirements of RBA Code of Conduct to have no Involvement Involvement unreasonable restriction for labors to move freely in and out of the workplaces. Employees Establishment of working time control mechanism to protect Appendix-Index Appendix-Index have the rights to leave or terminate their employment relationship at their free will. 【 labor rights and interests GRI content index GRI Standard Index 】 United Nations Global United Nations In accordance with regulations and the RBA code of conduct, under the premise of full Compact Index Global Compact Prohibition of inhuman treatment and to keep communication rest time and meal time, overtime application can be made by employees voluntarily. It Sustainability Sustainability shall be applied prior to the overtime and also approved by the managers. All sites have Development Goals Development Goals 【 channels open of the United Nations of the United Nations 】 set up the warning mechanism and automatic noti cation mechanism of overtime to Statement Statement PEGATRON prohibits any tangible or intangible sexual harassment, violence, abuse, control the working hours. In the system, di erent levels of overtime hours are marked by
colors based on the management needs. When the overtime hours exceed the maximum allowable 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 the 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
38 colors based on the management needs. When the overtime hours exceed the maximum tasks on hand so employees can fully demonstrate their talents in the workplaces. allowable overtime hours, the approval level will be upgraded. The report can be Editorial Principles Editorial Principles The wages we pay 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 Social Responsibility or pensions. We also continue to corporate with the local government projects of 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 【 】 PEGATRON’s monthly average new employee rate in 2018 (%) Sustainability Central China Operation Center: We provide employees the community type accommodations, Development Goals surrounded by all-inclusive living facilities such as food court, supermarkets, salons, health Company Pro le Company Pro le center, banks, libraries and gym to enrich their lives. Monthly Average Rate of Newly Hired Employee About PEGATRON Financial Performance East China Operation Center: Free Wi has been installed both in internal and external Location Gender Age Globalization dormitories 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 Taiwan 1.1% 1.8% 3.5% 0.7% 0.3% Sustainable Sustainable employees are provided, and we cooperate with the property management company which is 24.0% 21.9% 24.2% 19.6% 0.2% Management Management responsible for routine cleaning to ensure employees’ accommodations are clean and tidy. China Corporate Governance Corporate Governance Mexico 13.4% 17.5% 23.7% 8.2% 7.1% Code of Conduct Code of Conduct Czech 11.6% 11.8% 11.9% 11.6% 11.8% Information Security Information Security Risk Management Risk Management Remark: New employee rate (%) = monthly average number of departing employees / (the sum of employees at the end of each month/12) Regulatory Compliance Regulatory Compliance Attracting & Nurturing Talent Responsible Responsible Partnership Partnership Customer Service Employees are our most valuable assets. Cooperation between employees and the company PEGATRON’s monthly average turnover rate in 2018 (%) Sustainable is the solid basis for our future development. We believe “where there have excellent talents, Supply Chain the company will become an excellent corporation”. Respect of human nature and Monthly Average Rate of Employee Turnover Sustainable Sustainable Environment Environment cultivation of talents are our core values. In addition to the establishment of an innovative Location Low Carbon & Energy and diverse culture, we also pay attention to employees’ bene ts and health cares to balance Gender Age Greenhouse Gas the loads from high performance working and help them to better their daily lives. Male Female Under 30 yrs. 31-50 yrs. Over 51 yrs Sustainable Design Environmental Taiwan 1.1% 1.3% 2.1% 1.0% 0.5% Protection Retention & Recruitment China 23.8% 20.6% 23.7% 19.0% 0.0% Joyful Work Joyful Work Mexico 15.2% 19.0% 26.3% 9.4% 7.1% Employment █ Relationship We provide a safe and comfortable working environment along with extensive training Czech 7.8% 7.6% 7.7% 7.7% 7.5% Attracting & courses and career development. PEGATRON works on employee retention by providing Nurturing Talent Remark: Turnover rate (%) = monthly average number of departing employees / (the sum of career development opportunities, enabling work-life balance and enhancing our leaders’ employees at the end of each month/12) Occupational Health & Safety management abilities. Our action is the same as our business philosophy of “Joyful Work, Happy Life”. Employee Care Internal assessment system covers all employees worldwide, and we announced a clear Social Care Social Care We value the contributions of our diverse employees and keep attracting global talents to appraisal rule and assessment process. The work incentives and disincentives are internally Social Welfare Social Welfare join us by providing a good working environment and development opportunities. We disclosed, and we clearly communicate the execution process with all employees. All Community Community also have a industry-academic cooperation and internship programs to recruit excellent Involvement Involvement employees (with the exception of operators and new employees less than 3 months) have talents. We provide employment opportunities for local labors and disabilities to attract Appendix-Index Appendix-Index twice performance assessments per year to give feedbacks to their performance. Annual diverse talents and achieve corporate social responsibility. GRI content index GRI Standard Index employee development plans are set according to assessment results. While assisting employees’ growth and development through performance management, the principle United Nations Global United Nations PEGATRON provides professional HR training programs including testing tools as well as a Compact Index Global Compact for employee retention of PEGATRON is to respect, cultivate and value our employees. We series of interviewing techniques for supervisors to ensure fairness and equality of Sustainability Sustainability provide complete training programs and job rotation plans according to employees’ IDP recruitment as well as the quality of talents. In addition to professionalism, candidates’ Development Goals Development Goals (Individual development plan) analysis results combined with their own career goals. In of the United Nations of the United Nations ability, value, contribution and ability to blend in with Pegatron’s culture are also addition, we have personal development projects for employees to help them to nd Statement Statement important indicators. We have the principles in place for selecting the best talents for the
their potential abilities and perform better. The East China, Central China and West China operation centers formulate competitive salary standards based on the minimum wage levels announced by local governments, 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 than 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 internally disclosed, and we clearly communicate the execution process with all employees. All employees (with the exception of operators and new employees less than 3 months) have twice performance assessments per year to give feedbacks to their performance. Annual employee development plans are set according to assessment results. While assisting employees’ growth and development through performance management, the principle for employee retention of PEGATRON is to respect, cultivate and value our employees. We provide complete training programs and job rotation plans according to employees’ IDP (Individual development plan) analysis results combined with their own career goals. In addition, we have personal development projects for employees to help them to nd
39 their potential abilities and perform better. realize the plan. The supervisor will review the performance and give advice to the employee. Editorial Principles Editorial Principles The East China, Central China and West China operation centers formulate competitive A Word from A Word from salary standards based on the minimum wage levels announced by local governments, the CEO the CEO Pega e-library The platform o ers employees over one thousand books to Identi cation & Identi cation & wage guidance and the level of industry wages. We also raise the salary with a certain 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 To support the management philosophy of PEGATRON Group, which is “Joyful Work, Commitment employees be paid far more than local minimum wages so as to make sure that the salary Happy Life”, we expect all employees to work pragmatically and positively, and inspire the Stakeholder levels meet the arrangement of company's competitiveness development. 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 talent nurturing to encourage Identi cation our employees to achieve more excellent performances. We continuously invest resources Sustainability Development Goals Employee Training in nurturing talents and training programs for employees to enhance their core and Company Pro le Company Pro le █ professional abilities. An environment is built for all employees to develop their core and About PEGATRON PEGATRON emphasizes career planning and talent development for employees by professional abilities, and help them to achieve job satisfactions while working. We hope all Financial Performance encouraging them to participate in internal and external training programs. Internal employees can balance their lives and work, and also have happiness. Globalization training 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 professional trainings to reduce their insu ciencies, we also appoint mentors to help Code of Conduct Code of Conduct PEGATRON’s them to adapt to the working environments in a short period of time. 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 Online 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 internal procedures soon, each new Professional Training Orientation Lecture Greenhouse Gas • Mentor employee may have one mentor. • External Training • Management Skill • PEGATRON's Sustainable Design • Deputy Program • Overseas Training Training Association Environmental Protection Core competency We plan training programs for employees at each level based (eg: Conference, • Core Competency • Pega e-Library Joyful Work Joyful Work training on their competencies. exhibition, course, Training etc.) Employment • Talent Development Relationship Management We plan management trainings such as new manager Program for High Attracting & training orientation based on roles and responsibilities of supervisors. Level Managers Nurturing Talent • General and Occupational Professional Each unit plans professional competency training programs Management Lecture Health & Safety competency training based on the needs of professional knowledge and skills. Employee Care Social Care Social Care In order to hand down the internal knowledge, the trainer Improve professional With systematical Encourage proactive The Individual Social Welfare Social Welfare Trainer training training programs are held every year. And both of e-learning knowledge and skills learning map, and autonomous development plans Community Community through trainings or employees can learning development. with managers’ Involvement Involvement 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 Standard Index & Development stimulate their and enhance their Department. management talents job skills. United Nations Global United Nations The development plan for the next year will be determined Compact Index Global Compact and potential. jointly by an employee and his/ her direct supervisor based on Sustainability Sustainability IDP Development Goals Development Goals the discussion result between them. The employee can of the United Nations of the United Nations conduct several development ways, including training, Statement Statement reading and the participation or initiation of a project to 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 workplace safety. To meet local regulatory requirements is a A Word from A Word from series of learning pathways, including learning from model sta , reading, and baseline for us and we arrange not only health seminars and checkups, but also implement the CEO the CEO participation in various training courses, such as orientation training, core skills training, suitable health promotion projects for di erent needs of each site's employees. Furthermore, Identi cation & Identi cation & management training, professional training, new director training, internal lecturer for occupational safety and health issues, we have implemented several management Communication Communication training, all kinds of seminars and external training programs. The training objects include procedures and operation control measures to eliminate work related incidents. We also Social Responsibility Commitment all employees and the annual training plans are set. The employees can also learn through establish the preparedness and response plans in response to di erent risk levels and Stakeholder online learning system “e-learning” regardless limitation of time and place. scenarios to strengthen the safety and health management in working environments. Communication Material Issue Identi cation PEGATRON’s IDP participation rates in 2018(%) Sustainability Occupational Safety Development Goals █ Company Pro le Company Pro le Employees receiving individual development plans in 2018 About PEGATRON Participation Ratio of IDP Management system Financial Performance 【 】 PEGATRON pays attention to the risk assessment and management of our overall Globalization Location Worker Type Arrangement Total Rate operation. We periodically perform CSR related risk identi cations, evaluations, controls and Award List General Employee Supervisor reviews. We have de ned the standards of procurement management and management Sustainable Sustainable of changes (MOC) in our PureCSR management procedures. In addition, each site obeys its Management Management Taiwan 81.3% 85.1% 69.9% local authority’s requirements to perform work environment monitoring and occupational Corporate Governance Corporate Governance exposure assessments to ensure occupational safety and health of all employees as well as Code of Conduct Code of Conduct China 87.7% 86.9% 89.7% the quality of work environment. For the communication of risks, in addition to PureCSR Information Security Information Security Steering Committee Meetings, PureCSR & EHS Committee Meetings and the employee Risk Management Risk Management Note: (1) Participation rates (%) = No. of IDP Participators / No. of employees who should participate IDP suggestion boxes, we have put risk identi cation, risk management and risk perception as Regulatory Compliance Regulatory Compliance (2) Managers including Frontline Supervisors, Middle and High Level Managers, and Business Directors. important items in our trainings and regular promotions. Responsible Responsible (3) Mexico and Czech Plants did not implement the IDP. Partnership Partnership PEGATRON establishes the appropriate occupational safety and health management system Customer Service based on OHSAS 18001 (Occupational Health and Safety Management System), and gets the Sustainable Supply Chain PEGATRON Training Performance in 2018 certi cation by third parties. We promote the safety and health working environment Sustainable Sustainable through daily inspections and audits, and conduct CSR training programs in accordance with Environment Environment Average Hours of Training Per Employee (hrs.) internal procedures and legal regulations, including occupational safety and health related Low Carbon & Energy Location General Employee Supervisor trainings, corporate social responsibility audit trainings, introduction of corporate social Greenhouse Gas responsibility management system and other online trainings. The headquarters in Taipei is Male Female Male Female Sustainable Design regarded as the information integration center of global ESH organizations. All EHS related Environmental Taiwan 14.0 12.3 15.9 11.1 data and information will be aggregated and reported to management level. The dedicated Protection occupational health and safety unit and PureCSR & EHS Committee have been set up at each Joyful Work Joyful Work China 9.4 9.3 8.1 7.0 site. The committee of each site regularly reports the a airs relating to PureCSR management Employment Relationship Mexico 19.2 18.7 34.1 30.4 system and these issues may need to be further reviewed by Steering Committee (SC). The Attracting & results and performance are reported to the General Managers of all sites. Nurturing Talent Czech 6.8 5.4 4.5 3.5 Occupational Each site has set up annual ESH objectives & targets and various types of management Health & Safety Note: procedures. The PureCSR & EHS Committee Meetings are regularly convened with Employee Care (1) Average Training Hours = Total Hours of Training / Total Number of Employee who Participated Training employee representatives to communicate and consult on internal PureCSR and EHS Social Care Social Care (2) Supervisors include Frontline Supervisors, Middle and High Level Managers, and Business Directors. performance. Each site not only complies with local regulatory requirements, but also make Social Welfare Social Welfare continuous improvements in conformity with international trends, customer requirements Community Community and PureCSR policy towards continuous improvement. Involvement Involvement Appendix-Index Appendix-Index GRI content index GRI Standard Index Proportion of employee representatives of PEGATRON in 2018(%) United Nations Global United Nations Occupational Health & Safety Compact Index Global Compact Location Taiwan China Mexico Czech Sustainability Sustainability Development Goals Development Goals Identify the Safety & Health Hazards in Workplaces and Control Proportion (%) 44.8% 34.6% 12.5% 50.0% of the United Nations of the United Nations Proportion (%) = Number of worker representatives in PureCSR & EHS committees / Number of members in Statement Statement the Risks, as well as Build a Healthy Working Culture. PureCSR & EHS committees * 100 % 41 Occupational Hazards risks, as well as the notice of safety works that the contractors have to obey. EHS Editorial Principles Editorial Principles 【 】 professionals periodically perform environmental, safety and health (EHS) training A Word from A Word from To prevent occupational hazards and protect employees’ safety & health, we have set programs to contractors. The agenda of the training programs includes basic knowledge the CEO the CEO dedicated units to conduct the overall planning for addressing environmental and safety of EHS, working environment, hazard noti cation, etc. Identi cation & Identi cation & & health matters. PEGATRON conducts incident investigations and root cause analysis Communication Communication In addition to controlling the access of contractors via identi cation system, the according to the requirements of local regulations and OHSAS 18001 management Social Responsibility construction permit application system is in place to manage all dangerous construction system. The corresponding corrective actions will be set up and in place to prevent them Commitment works. The high risk works shall be overseen by quali ed personnel at all times and EHS from reoccurring. Training programs and noti cations will be provided to all relevant Stakeholder professionals shall also perform the inspections to see if the work scene can meet our EHS Communication employees to enhance their capabilities on emergency response and lower the e ects of requirements. The work permits shall be approved prior to special works, including re, Material Issue harms and losses. In the future, management measures will continue to be implemented working at heights, hanging operation or working in a con ned space. The safe working Identi cation to improve our working environment. Sustainability scenario, such as the quali cation or personnel who conducts the work and the safety Development Goals We control the chemicals used at the beginning. The safety data sheet (SDS) shall be status of workplace shall be con rmed by EHS professionals. The work can only start after Company Pro le Company Pro le available before the formal use of chemicals. This mechanism can help us to evaluate the getting EHS approval. About PEGATRON hazard characteristics of chemicals and avoid the use of chemicals with signi cant risks. Financial Performance Through risk assessment, high risk jobs can be identi ed. The occupational hazards notice Globalization card has been established and the information regarding personal protective equipment PEGATRON work related injury statistics in 2018 Arrangement list and instruction manual are included in the hazards notice card which can provide Award List useful information to employees. The annual medical checkups continue to be provided Sustainable Sustainable for the employees whose jobs are related to occupational hazardous factors per legal Disabling Disabling Absence Occupa- Work- Management Management injury injury rate (AR) tional related Corporate Governance Corporate Governance requirements, including pre-employment, in employment and post-employment Location Gender frequency Severity disease rate Fatalities Code of Conduct Code of Conduct medical checkups. The reports of these medical checkups are well managed in a rate (SR) Information Security Information Security systematic way. Once any abnormal condition is discovered, immediate actions will be rate (FR) (ODR) Risk Management Risk Management taken to ensure the health status of employees. Regulatory Compliance Regulatory Compliance Male 0.97 9 0.77 0 0 Taiwan Responsible Responsible Female 0.60 10 0.67 0 0 Partnership Partnership Customer Service Male 0.80 6 1.84 0 0 China Sustainable Accident Female 0.25 2 0.76 0 0 Supply Chain Accident Correction & Declaration Investigation & Prevention Sustainable Sustainable Analysis Male 0 0 0 0 0 Environment Environment Mexico Female 0.23 2 <0.01 0 0 Low Carbon & Energy Greenhouse Gas Environmental and Safety & Male 0.65 3 3.51 0 0 Health Matter Czech Sustainable Design Committee Female 1.31 29 7.26 0 0 Risk Assessment Environmental Meetings & Protection Case Study (1) Disabling injury frequency rate (FR) = number of disabled people / total working hours*1,000,000 Joyful Work Joyful Work Risk Training Practice (2) Disabling injury severity rate (SR) = number of working days lost / total working hours* 1,000,000 Self-checks & Employment Control Program (3) Absence rate for work related injury (AR) = number of days absent / total working days* 100 Relationship Maintenance Attracting & (4) Occupational disease rate(ODR) = number of people with occupational disease /total working hours* 200,000 Nurturing Talent (5) Minor injuries are not included in this table. Occupational Health & Safety Employee Care Social Care Social Care Emergency Response Social Welfare Social Welfare Contractor Management 【 】 Community Community 【 】 Sustainable development is the main target of business operations of PEGATRON Group. Involvement Involvement PEGATRON not only rules itself to meet the safety requirements on production, but also In response to the impacts on our company by climate change, we have implemented Appendix-Index Appendix-Index ask all contractors to follow its requirements and applicable local safety regulations. The corresponding emergency response procedures at each manufacturing center. We have GRI content index GRI Standard Index quali cation of the contractors shall be reviewed to ensure they can meet the minimized potential damages and impacts by setting up a response mechanism, and United Nations Global United Nations requirements of PEGATRON’s contractor management procedure. The environmental, planning as well as periodic training programs and drills. Compact Index Global Compact safety and health risks, rules and regulations shall be communicated to the contractors Sustainability Sustainability prior to working in our facilities. Besides, the safety production agreements shall be signed PEGATRON has issued preparedness and response procedures and established the Development Goals Development Goals of the United Nations of the United Nations by the contractors while they sign the contracts with us. The contents of the agreement emergency noti cation mechanism in each site to reduce the risks of re, Statement Statement include the procedures regarding signi cant environmental aspects and safety & health typhoon, ood, earthquake, chemical leakage and liquid gas leakage. We improve
the abilities of our emergency response teams and enhance the awareness of all employees through periodic training programs and drills. Take HQ’s implementation for example, in addition to installing Automated External De brillator (AED), we also strengthen the trainings of rst aid personnel, as well as establish the procedure to improve the capabilities of relevant responsible personnel on rst aid. The emergency response plans of Central China Operation Center include the re escape plan, special machinery and equipment contingency plan, chemical spill contingency plan, con ned space rescue plan and food poisoning contingency plan. The East China Operation Center also establishes a number of contingency plans and cooperates with the local government's response mechanism. Sustainable development is the main target of business operations of PEGATRON Group. In response to the impacts on our company by climate change, we have implemented corresponding emergency response procedures at 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 procedures and established the emergency noti cation mechanism in each site to reduce the risks of re, typhoon, ood, earthquake, chemical leakage and liquid gas leakage. We improve
42 the abilities of our emergency response teams and enhance the awareness of all employees pre-pregnant, pregnant and post-pregnant employees, we provide di erent health Editorial Principles Editorial Principles through periodic training programs and drills. Take HQ’s implementation for example, in promotion measures for them to protect their bodies and mental health. A Word from A Word from addition to installing Automated External De brillator (AED), we also strengthen the For the facilities in HQ, we set up a health care room with professional doctors. According the CEO the CEO trainings of rst aid personnel, as well as establish the procedure to improve the capabilities to the health care system, employees can use health insurance cards to see doctors. We Identi cation & Identi cation & of relevant responsible personnel on rst aid. The emergency response plans of Central Communication Communication encourage breastfeeding and also set up a comfortable nursing room for female China Operation Center include the re escape plan, special machinery and equipment Social Responsibility employees feeding the breast milk in the workplace. We also have massage rooms to Commitment contingency plan, chemical spill contingency plan, con ned space rescue plan and food provide sta relief from stresses. The health website is built as a platform to promote Stakeholder poisoning contingency plan. The East China Operation Center also establishes a number of health activities and provide employees related online information as well. Communication contingency plans and cooperates with the local government's response mechanism. Material Issue Identi cation Sustainability Development Goals Company Pro le Company Pro le Evacuation drills and emergency training programs by Region in 2018 Health Promotion Activity in HQ About PEGATRON in 2018 Financial Performance Item Topic Participation Globalization Arrangement Location Taiwan China Mexico Czech 1 Cancer prevention for women -Pap smear test 140 Award List 2 Health care of high risk groups 31 Sustainable Sustainable Times of evacuation drills 12 258 1 2 3 Fun and energetic for climbing stairs Management Management 8450 Corporate Governance Corporate Governance Times of emergency response training 37 127 1 2 4 In uenza vaccination 399 Code of Conduct Code of Conduct 5 Massage service 4473 Information Security Information Security We establish the epidemic prevention group and develop the infectious disease reporting 6 Oral health screening 1640 Risk Management Risk Management mechanism to monitor the epidemic condition, integrate the goods and materials and 7 Healthy Weight Management-2018 804 Regulatory Compliance Regulatory Compliance adjust the control procedures based on the levels of epidemic conditions. Once the Responsible Responsible Partnership Partnership critical infectious disease occurs, the reporting mechanism can reduce the chance of Customer Service infection and prevent negative impacts on operations. 2018 Health Promotion Lecture in HQ Sustainable Supply Chain Topic Theme Sustainable Sustainable Environment Environment • Chinese medicine practitioner talks about women's Low Carbon & Energy Occupational Health Woman Health cancer diagnosis and treatment Greenhouse Gas █ Weight Management • Healthy weight management courses Sustainable Design • Metabolic syndrome and cardiovascular disease Environmental The health care program for employees in PEGATRON is established based on the needs Cardiovascular Care Protection of employees and the features of each site. We provide 4 dimensions of projects • How to choose a health checkup project Joyful Work Joyful Work integrating work and life to promote their health and elevate their lives quality, including Health Topics • Employment Know your health report Relationship health management, health promotion, occupational hygiene and employee assistance • How to protect your eyes Attracting & project (EAP). In order to improve the working environment proactively, the Nurturing Talent cross-functional team was established and the project for the employees who may have Occupational potential heart diseases was also provided. By analysis of their workloads, the health Health & Safety instructions can be given accordingly. We can promote the health culture and make the Employee Care strategy of occupational disease prevention be practically implemented in the company. Social Care Social Care Social Welfare Social Welfare For the employees’ health management, each manufacturing center has set up the Community Community in rmary to provide outpatient services by professional physicians. Also, several health Involvement Involvement checkups are conducted as regulated. The results of the health checkups are classi ed Appendix-Index Appendix-Index into di erent levels for follow up actions, which are regulated by local authorities. We GRI content index GRI Standard Index have launched many health related activities, including weight management, stair United Nations Global United Nations Compact Index Global Compact climbing activity, ergonomic program, relaxation massage, vaccine injection and health Sustainability Sustainability lecture courses. Furthermore, for promotion of maternity protection, the nursing room Development Goals Development Goals has been built in every operation center and manufacturing center which can provide of the United Nations of the United Nations employees to use when needed. For di erent stages of pregnant employees, including Statement Statement 43 2018 Health Promotion Activities 9 Measles vaccination 175 Editorial Principles Editorial Principles Taoyuan Manufacturing Center A Word from A Word from 【 】 the CEO the CEO Identi cation & Identi cation & Item Topic Participation Communication Communication 1 Medical checkup upgrade project and cancer screening activity 148 Social Responsibility Commitment 2 Cancer prevention for women 68 Stakeholder 3 Recheck for abnormal cases in annual medical checkup activity 64 Communication 4 Health promotion for people with metabolic syndrome 51 Material Issue Training for getting more understanding on Ergonomic 5 32 Identi cation hazardous factors Sustainability 6 In uenza vaccination 18 Development Goals 7 Health promotion announcement and training activity 12 Company Pro le Company Pro le About PEGATRON Financial Performance Globalization Health Promotion Lecture in PCQ Arrangement 【 】 Award List Sustainable Sustainable Item Topic Participation Management Management 1 Healthy exercise we can do in the o ce All employees Corporate Governance Corporate Governance Code of Conduct Code of Conduct 2 Eyes protective exercise All employees Information Security Information Security 3 Good sleep for good health 15 Risk Management Risk Management Health Promotion Lecture in PSZ 4 O ce employees’ health guideline 20 Regulatory Compliance Regulatory Compliance 【 】 5 The introduction of the pain in neck, shoulder, waist and leg 10 Responsible Responsible Partnership Partnership Item Topic Participation 6 Health promotion- Posters 6 Customer Service 1 Everybody learns rst aid 447 Sustainable 2 Health lecture 324 Supply Chain Sustainable Sustainable Environment Environment Low Carbon & Energy Greenhouse Gas Sustainable Design Environmental Protection Joyful Work Joyful Work Employment Relationship Attracting & Nurturing Talent Health Promotion Lecture in PSH Occupational 【 】 Health & Safety Czech Manufacturing Center Employee Care Item Topic Participation 【 】 Social Care Social Care 1 Respectful maternity care 108 Item Topic Participation Social Welfare Social Welfare 2 First aider training (internal & external) 830 Community Community All key and Involvement Involvement 3 Prevention of high blood pressure and seasonal diseases 361 1 Provision of vitamin packages temporary 4 Health questionnaire survey 987 Appendix-Index Appendix-Index employees GRI content index GRI Standard Index 5 Annual health checkup project for managers 431 United Nations Global United Nations Annually health checkup project for married female Compact Index Global Compact 6 101 employees (non-pregnant) Sustainability Sustainability Development Goals Development Goals 7 Health promotion lecture for epidemic diseases 95 of the United Nations of the United Nations 8 Health promotion lecture for women 48 Statement Statement 44 Mexico Manufacturing Center Food testing results process: Editorial Principles Editorial Principles 【 】 A Word from A Word from Item Topic Participation the CEO the CEO Identi cation & Identi cation & 1 Promote health care: Health and nutrition 139 Testing result Communication Communication 2 Promote health care: Smoking 144 OK Social Responsibility 3 Promote health care: Parotiditis 42 Commitment NG 4 Promote health care: Rickettsiosis 157 Stakeholder Food management Communication 5 Promote health care: Metabolic Syndrome 179 Dept. Material Issue 6 Promote health care: Cerebral vascular disease 134 Identi cation Sustainability 7 Early high blood pressure protection program 45 Development Goals 8 Visual program 37 Abnormal Notice Company Pro le Company Pro le 9 In uenza prevention program 33 About PEGATRON Financial Performance Supplier con rmation Globalization Cooked food/dishes The ingredients Arrangement Award List Food safety control - food testing laboratory Sustainable Sustainable 【 】 Management Management The food safety issues have frequently occurred in recent years. In order to ensure food Improvement Inventory Checking Corporate Governance Corporate Governance safety for employees, food testing laboratories (FTL) have been set up in Central China Code of Conduct Code of Conduct and East China Operation Centers successively. In the Central China Operation Center, FTL Information Security Information Security has established since 2008 and hired the persons who were certi ed by the ministry of NG Con rm the Abnormal Replaced with Risk Management Risk Management human resources and social security to manage the food, tableware, drinking water and improvement Item Return Quali ed Substitution Regulatory Compliance Regulatory Compliance ingredients tests. The FTL has biochemical incubators, high-pressure steam sterilizers, Responsible Responsible multi-functional food safety detectors, and so on. There are 40 food testing items OK Partnership Partnership currently. We will increase the test of high risk items and the promotion of food safety Customer Service management system to other sites continuously in the future. Each plant will also follow Sustainable ISO/IEC17025 to manage laboratory operation, and strive for a better service so that Manager Signed Supply Chain employees can eat healthy and feel relieved. Sustainable Sustainable Environment Environment Monthly Payment Low Carbon & Energy Statistics Greenhouse Gas Sustainable Design Annual Environmental Assessment Protection Joyful Work Joyful Work Employment Closed Relationship Attracting & Nurturing Talent Occupational Health & Safety Employee Care Social Care Social Care Social Welfare Social Welfare Community Community Involvement Involvement Appendix-Index Appendix-Index GRI content index GRI Standard Index United Nations Global United Nations Compact Index Global Compact Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations 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 231 the CEO the CEO Center 4. Contact Window for Employee Relationship Identi cation & Identi cation & We Listen to the Voices from Employees to Build a Big Family Together. 5. Meeting with Factory Director Communication Communication 1. 17885 Hotline (023-8850-9888#17885) Social Responsibility 2. i-Pega box ([email protected])) Commitment Our employees are encouraged to provide their suggestions and opinions through 3. Email for Employee Relationship Stakeholder various channels that have been set up for them. We believe the Company’s culture and West China 4. Online Service Platform Communication Operation 773 work atmosphere can be improved by hearing the voices of our employees. In addition to 5. HR Service Center Material Issue Center 6. Meeting with Factory Teacher Identi cation setting up communication channels, we emphasize the health care and occupational 7. Meeting with Factory Director and General Manager Sustainability safety of our employees. PEGATRON considers our sta 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 Mexico Company Pro le Company Pro le work-life balance of our employees. We provide timely care and help for employees, while 1. Suggestion Box Manufacturing 2. Email 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. Email Box ([email protected]) 144 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 especially 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 2018 : Risk Management Risk Management questions so as to maintain a good relationship between labors and management. Regulatory Compliance Regulatory Compliance Responsible Responsible HQ & Taoyuan Manufacturing Center Partnership Partnership PEGATRON has set up multiple communication channels including employees’ Customer Service suggestion box (i-PEGA BOX), department service hotlines, EAP (Employee Assistant Occupational & Health 6% ● Sustainable Programs) and so on. There are also counseling hotlines, health hotlines, and a Human Resource 9% Supply Chain ● grievance mechanism in place at our sites to e ectively help to solve employees’ Computer 10% Sustainable Sustainable problems. Employees can choose di erent channels depending on their needs. For ● Environment Environment Environment 26% example, at the Central China Operation Center, there is a variety of communication ● Low Carbon & Energy Administration 43% channels for employees, including “Big Sister Studio”, “Recruitment Counseling ● Greenhouse Gas Others 6% Sustainable Design O ce”, “Living Area Employee Service Center”, “Employee Representative Meeting”, ● Environmental “Employee Regular Interview” and so on, so as to timely and e ectively solve their Protection problems. The purpose of “Big Sister Studio” is "service with care, care with love", providing not only a variety of communication channels (WeChat, QQ, hotline, email Joyful Work Joyful Work Central China Operation Center Employment ([email protected]), mailbox, message, interview), but also psychological Relationship Occupational & Health 30% counseling, personality analysis, career planning and other services so as to promote ● Attracting & the healthy development and enhance the sense of belongingness of employees. Human Resource 46% Nurturing Talent ● Environment 22% Occupational ● Health & Safety Computer 2% ● Employee Care PEGATRON Employee Suggestion in 2018 Social Care Social Care Social Welfare Social Welfare Community Community Location Communication Channel Number Involvement Involvement All Business Ethics Box ([email protected] ) East China Operation Center Appendix-Index Appendix-Index / Occupational & Health 28% GRI content index GRI Standard Index HQ & Taoyuan 1. I-PEGA ([email protected]) ● 254 Human Resource 29% United Nations Global United Nations Manufacturing 2. Harassment Mailbox ([email protected]) ● Compact Index Global Compact Center 3. Suggestion Box Computer 14% Sustainability Sustainability ● Environment % Development Goals Development Goals East China 1. Employee Service Center ● 29 of the United Nations of the United Nations Operation 2. Help Center ([email protected]) 14 Statement Statement Center 3. Union 46 West China Operation Center Czech Manufacturing Center Channels for Caring Employees : Editorial Principles Editorial Principles Human Resource Occupational ● ● 9% A Word from A Word from 100% & Health Location Channel for caring employee the CEO the CEO Human Resource 43% Identi cation & Identi cation & ● HQ & Taoyuan Employee Mental Health Hotline, Regular Sta Interview, Employee Assistance Communication Communication Administration 40% ManufacturingCenter Program(EAP), Suggestion Box, Harassment grievance email ● Social Responsibility Others 8% Hi_Sister workshop, Employee Representative Meeting, Counseling Service Commitment ● Central China Center for New Employees, Counseling Window for Employee Relationship, Stakeholder Operation Center Communication Meeting with Factory Director East China Material Issue Employee Service Center, Help Center, Union, Mentor, Suggestion Box Identi cation Operation Center Sustainability Hotline, Email for Employee Relationship, Online Service Platform, HR Service Development Goals West China Center, Meeting with the Teachers Stationed in the Factory, Meeting with Company Pro le Company Pro le In order to enable 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. That helps our employees to have a more in-depth understanding of the Suggestion box, Sta interview Financial Performance Manufacturing Center Globalization company’s decision making processes. We held 4 Co ee Talk meetings in 2018. Arrangement Czech 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 “Joyful Work, Happy Life” is PEGATRON’s philosophy regarding employees. we endeavor Risk Management Risk Management Having a Talk Regulatory Compliance Regulatory Compliance to show our cares to all employees. We hope our employees can focus more on family 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 the way of application. We provide labor, health and group insurance in Sustainable Sustainable Environment Environment Taiwan, and regularly hold cultural lectures. The leave and attendance rule is also better Low Carbon & Energy than or meets local regulations. Greenhouse Gas The Welfare Committee provides scholarships for employees' children every year to Sustainable Design encourage them to study hard. Our welfare committee also provides di erent bene ts for Environmental options such as travel, medical care, recreation and bene ts. The Year-End party, Protection Employee bene ts are discussed in our quarterly employee welfare committee meetings. Joyful Work Joyful Work The employee representatives are responsible for expressing opinions of our employees community activities, team sports, family days, arts and culture activities are all for employees’ choices. We hope our employees can focus more on family during spare time. Employment to communicate with the company. Relationship A more favorable consumer channel is provided to colleagues by our welfare committee, Attracting & PEGATRON has implemented many mental health programs in each manufacturing center and our special shops cover 11 types of dining, sports, learning, leisure, arts, home, Nurturing Talent to provide calm and relaxing channels for employees. We also set up special psychological education, etc., so as to o er 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 held Employee Care We o er many types of assistance care activities for our employees, including consulting planting activities which let colleagues enjoy the fun of planting on the roofs since 2014. Social Care Social Care hotlines, counseling rooms, suggestion boxes and regular interviews. PEGATRON also In addition to the bene t of greenery, the process of planting also increases Social Welfare Social Welfare combines social workers and psychologists in a special cooperation model to provide environmental awareness. We regularly invite experts to teach colleagues about planting Community Community psychological counseling EAP (Employee Assistance Programs) service. We select suitable techniques. Since 2015, one more site has started the planting activities. The activities are Involvement Involvement teachers and provide psychological consultation services based on employees’ issues and held twice per year per site and around 700 people participated in each planting shift Appendix-Index Appendix-Index help them to solve their psychological problems. within 2 sites. We have a lottery system due to the limitation of the cultivation area, and GRI content index GRI Standard Index the number of participants of each cycle is around 400 people. United Nations Global United Nations Compact Index Global Compact Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement 47 retirement needs of relevant employees. Please refer to PEGATRON’s 2018 Financial Editorial Principles Editorial Principles 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 & Communication Communication Social Responsibility Commitment Stakeholder Communication Material Issue Identi cation Sustainability Development Goals Company Pro le Company Pro le We provide an integrated welfare system and treat all employees equally at 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 Work, Happy Life". Some welfare might be di erent according Globalization to di erent workplaces, but all welfare programs are in conformity with or better than the Arrangement requirements of local regulations. Award List Sustainable Sustainable The Central China Operation Center regularly organized cultural activities to enrich the Management Management lives 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 2,200 people who joined the EHS Information Security Information Security Month Activity. Risk Management Risk Management Regulatory Compliance Regulatory Compliance Responsible Responsible Partnership Partnership Employee Bene ts at each site: Customer Service Sustainable Location Item Supply Chain Sustainable Sustainable HQ & Taoyuan birthday gifts, festival bonus, meal allowance, voucher (marriage Environment Environment Manufacturing Center gifts, fertility gifts, funeral condolences), reunion 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 marriage gifts, fertility gifts, funeral condolences, birthday gifts, Environmental Protection Central China Operation Center bonus, emergency assistance payment, meal allowance, retirement greeting activity, family day Joyful Work Joyful Work Employment marriage gifts, fertility gifts, funeral condolences, funeral Relationship West China Operation Center condolences, sunshine fund, meal allowance, subsidy for end of Attracting & year party Nurturing Talent meal allowance, savings fund, Christmas bonus, attendance and Mexico Manufacturing Center Occupational punctuality bonus, Medical Insurance (ADM) Health & Safety Czech Manufacturing Center pension insurance, meal allowance Employee Care Social Care Social Care Social Welfare Social Welfare Community Community Involvement Involvement For those who choose the new pension fund system, PEGATRON allocates 6% of Appendix-Index Appendix-Index employees’ monthly salaries as pensions based on “Labor Pension Act for new system" GRI content index GRI Standard Index and put the pensions in personal retirement accounts established by the Bureau of Labor United Nations Global United Nations Insurance. Employees can make voluntary contributions from 0% to 6% for their pensions Compact Index Global Compact and the voluntary contribution will be fully deducted from their annual personal Sustainability Sustainability Development Goals Development Goals consolidated income tax. For those who choose the old pension fund system, PEGATRON of the United Nations of the United Nations allocates 2% of employees’ monthly salaries as pensions based on "Labor Standards Law Statement Statement for old system " and put the pensions in old pension fund system accounts to meet the Navigate Social Care the Work with local communities to Future develop appropriate welfare activities. 49
Editorial Principles Editorial Principles Social Welfare A Word from A Word from the CEO the CEO Identi cation & Identi cation & More than Technology, We Irrigate the Society with Culture and Arts. Communication Communication Social Responsibility We fully implement social responsibility from the inside out to understand the true needs Commitment from di erent parties, and positively encourage all employees around the world to follow. Stakeholder For the planning of activities, community participations and empathy actions, we start Communication internally and promote them to neighboring communities, then extend them to where it Material Issue Identi cation is most needed. Sustainability PEGATRON actively participates in public events, sponsors many kinds of organizations, Development Goals PEGATRON Central China Operation Center (PSZ) Company Pro le Company Pro le and commits to care for the weak and the poor. We continue to pay attention to the 【 】 About PEGATRON reading and digital di erence problems of children in the remote area of the eastern The Central China Operations Center, in addition to responding to the group charity Financial Performance countryside in Taiwan, so that we provide necessary materials and equipment for them. activities, continues to devote to long-term public welfare activities by way of Globalization PEGATRON has also got involved in cultural development, arts events and sports events contributing to the local community. There were 199 people who participated in the Arrangement in recent years, and sponsored activities in music, drama, dancing as well as literary event of blood donation in 2018. The blood donation activities of PSZ from 2016 to 2017 Award List creation, academic seminars and health promotion to ful ll our corporate social were also awarded with Blood Donation Award by the Suzhou City Government in 2018. Sustainable Sustainable responsibility commitment. Management Management Corporate Governance Corporate Governance A public welfare club in our Headquarters, Happiness Philosophy Club, irregularly holds Code of Conduct Code of Conduct lectures and activities about ecological preservation, humanistic care and environmental Information Security Information Security protection. By this way, our colleagues have the opportunity to more understand the Risk Management Risk Management society and environment, and then serve the community. Regulatory Compliance Regulatory Compliance The welfare and donation activities held by the Happiness Philosophy Club in 2018 include: Responsible Responsible Partnership Partnership 1. The donation of 38 boxes of goods to an elementary school in a rural area, including Customer Service books, computers, monitors and DVD, as well as used wireless microphone sets and Sustainable Supply Chain some used stationeries and furnitures. Sustainable Sustainable Environment Environment 2. Used hard disks donated to ASUS Foundation Low Carbon & Energy 3. Goods donation for supporting “Kuentai Happiness for Rural Areas Greenhouse Gas Sustainable Design Environmental Protection Community Involvement Joyful Work Joyful Work Employment Relationship Hear the Voices of Residents and Put Resources Right. Attracting & Nurturing Talent All our major operation centers and manufacturing centers are also involved in long-term PEGATRON East China Operation Center (PSH) Occupational local public welfare activities to make contributions to local societies. 【 】 Health & Safety Our East China Operation Center held and participated in a lot of local public welfare Employee Care activities. Throughout the activities, we expected that these activities can attract public Social Care Social Care attention on environmental protection as well as the welfare of disadvantaged groups. Social Welfare PEGATRON Headquarters (HQ & TY) Community 【 】 These activities include: Involvement 1. Waste recycling : We responded to 422 World Earth Day Activity by recycling the waste 1. Activity on Tree Planting Day: There were 24 cherry plum trees planted by 34 people in Appendix-Index Appendix-Index electronic products from employees and handled them properly to protect the the campus during the activity. GRI content index GRI Standard Index environment United Nations Global United Nations 2. Blood donation: There were 71 people who joined the event. Compact Index Global Compact 2. Material donations: We donated 10 LCD displayers to social welfare institutions Sustainability Sustainability 3. Environmental volunteers: This activity aimed to clean up the trashes on the road near Development Goals Development Goals 3. Invoice donation activities of the United Nations of the United Nations the campus and popularize the good manners to people who did the uncivilized Statement Statement 4. Blood donation activities behaviors. There were 45 people who joined the event in total. 50 4. Clothes donation activity: PSH supported the activity titled “Good from a Family” and Editorial Principles Editorial Principles donated clothes and shoes for China Junior Children's Fund. 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 PEGATRON West China Operation Center (PCQ) Globalization Arrangement 【 】 The West China Operation Center continues to hold many local public welfare activities to Award List respond the needs of disadvantaged groups in local community, include the activity of Sustainable Sustainable Management Management caring of re- ghting o cers in 2018. There were 30 people who joined the event. Corporate Governance Corporate Governance Code of Conduct Code of Conduct Information Security Information Security Risk Management Risk Management PEGATRON Czech Manufacturing Center (PCZ) Regulatory Compliance Regulatory Compliance 【 】 Responsible Responsible 1. Financial support for local sport clubs. Partnership Partnership 2. Financial support for Disabled Olympics. Customer Service 3. Financial support of books for children 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 GRI Standard Index United Nations Global United Nations Compact Index Global Compact Sustainability Sustainability Development Goals Development Goals of the United Nations of the United Nations Statement Statement Navigate Appendix- Index the Future 52 GRI 102: 102-49 Changes in reporting 7 Editorial Principles Editorial Principles GRI Standards Index General Remarks: A Word from A Word from Disclosures The material issues compared with 2017 year, Anti-corruption, Green product, the CEO the CEO 2016 Con ict minerals were new in while socioeconomic compliance was excluded. Identi cation & Identi cation & Communication Communication General Disclosures 102-50 Reporting period 1 Social Responsibility █ Commitment 102-51 Date of most recent report 1 GRI Standards Disclosure Page Omission Stakeholder 102-52 Reporting cycle 1 Communication 102-1 Name of the organization 10 Material Issue 102-53 Contact point for questions regarding the report 1 102-2 Activities, brands, products, and services 10 Identi cation 102-54 Claims of reporting in accordance with the 1 Sustainability 102-3 Location of headquarters 10 Development Goals GRI Standards Company Pro le Company Pro le 102-4 Location of operations 11 102-55 GRI content index 52 About PEGATRON 102-5 Ownership and legal form 10 102-56 External assurance 1, 56 Financial Performance 102-6 Markets served 10 Globalization Arrangement 102-7 Scale of the organization 10, 11 Award List 102-8 Information on employees and other workers 36 Material topics Sustainable Sustainable █ Management Management 102-9 Supply chain 10, 21 Corporate Governance Corporate Governance 102-10 Signi cant changes to the / There were no Economic- Economic performance Code of Conduct Code of Conduct organization and its supply chain signi cant changes GRI Standards Disclosure Page Omission Information Security Information Security to the organization Risk Management Risk Management and its supply GRI 103: 103-1 Explanation of the material topic and its Boundary 10 Regulatory Compliance Regulatory Compliance chain in 2018. Management GRI 102: 10 Responsible Responsible Approach 103-2 The management approach and its components Partnership Partnership General 102-11 Precautionary Principle or approach 17 2016 103-3 Evaluation of the management approach 10 Customer Service Disclosures 102-12 External initiatives 4 Sustainable 2016 201-1 Direct economic value generated and distributed 10 Supply Chain 102-13 Membership of associations 4 GRI 201: 201-2 Financial implications and other risks and 26 Sustainable Sustainable 102-14 Statement from senior decision-maker 2 Economic opportunities due to climate change Environment Environment Performance Low Carbon & Energy 102-16 Values, principles, standards, and norms of behavior 15 2016 201-3 De ned bene t plan obligations and other 46 Greenhouse Gas 102-18 Governance structure 14 retirement plans Sustainable Design 102-40 List of stakeholder groups 5 201-4 Financial assistance received from government 10 Environmental Protection 102-41 Collective bargaining agreements 37 Joyful Work Joyful Work 102-42 Identifying and selecting stakeholders 5 Economic- Market presence Employment Relationship 102-43 Approach to stakeholder engagement 5 GRI Standards Disclosure Page Omission Attracting & GRI 103: Nurturing Talent 102-44 Key topics and concerns raised 5 103-1 Explanation of the material topic and its Boundary 38 Management Occupational 102-45 Entities included in the consolidated 1 38 Approach 103-2 The management approach and its components Health & Safety nancial statements Employee Care 2016 103-3 Evaluation of the management approach 38 102-46 De ning report content and topic Boundaries 7 Social Care Social Care GRI 202 202-2 Proportion of senior management hired from the Social Welfare 102-47 List of material topics 7 Market local community Community Presence 36 Involvement 102-48 Restatements of information / 2016 Appendix-Index Appendix-Index Remarks: GRI Standard Index 1. Chapter 5.1 and 5.2- The electricity emission factors over the years were retrospectively revised by the competent authority of Taiwan in 2018. After recom rmation, the United Nations Global Compact Index di erence of data didn't reach the signi cant threshold of corporate change. Therfore, the electricity use and GHG emissions in 2009 (base year) were updated Sustainability Development Goals according to the third party veri cation statements. of the United Nations 2. Chapter 5.4.1- The data of domestic waste and recycling waste in 2017 has been Statement corrected after recon rmation. 53 Economic- Anti-corruption 103-3 Evaluation of the management approach 31, 32 Editorial Principles Editorial Principles GRI Standards Disclosure Page Omission 306-1 Water discharge by quality and destination 32 A Word from A Word from GRI 306: 306-2 Waste by type and disposal method 31 the CEO the CEO GRI 103: 103-1 Explanation of the material topic and its Boundary 15 Identi cation & Identi cation & Management E uents and 306-3 Signi cant spills No spill 103-2 The management approach and its components 15 Communication Communication Approach Waste 2016 event occurred. Social Responsibility 103-3 Evaluation of the management approach 15 Commitment 2016 306-5 Water bodies a ected by water discharges No spill Stakeholder GRI 205 Anti 205-1 Operations assessed for risks related to corruption 15, 17 and/or runo event occurred. Communication Corruption 205-3 Con rmed incidents of corruption and Material Issue 15 Identi cation 2016 actions taken Environmental - Environmental compliance Sustainability GRI Standards Disclosure Page Omission Development Goals Economic- Ethics and integrity Company Pro le Company Pro le GRI 103: 103-1 Explanation of the material topic and 31 About PEGATRON GRI Standards Disclosure Page Omission Management its Boundary Financial Performance Approach GRI 103: 103-1 Explanation of the material topic and its Boundary 15 Globalization 2016 103-2 The management approach and its components 31 Arrangement Management 103-2 The management approach and its components 15 103-3 Evaluation of the management approach 31 Award List Approach 15 Sustainable Sustainable 2016 103-3 Evaluation of the management approach GRI 307: 307-1 Non-compliance with environmental Management Management 205-1 Operations assessed for risks related to corruption 15, 17 Environmental laws and regulations GRI 205 Anti 31 Corporate Governance Corporate Governance Compliance Corruption2016 205-3 Con rmed incidents of corruption and actions taken 15 Code of Conduct Code of Conduct 2016 Information Security Information Security Risk Management Risk Management Environmental- Energy Regulatory Compliance Regulatory Compliance Social-Employment GRI Standards Disclosure Page Omission Responsible Responsible GRI Standards Disclosure Page Omission Partnership Partnership GRI 103: 103-1 Explanation of the material topic and its Boundary 26 Customer Service Management GRI 103: 103-1 Explanation of the material topic and 36 103-2 The management approach and its components Sustainable Approach 26 Management its Boundary Supply Chain Approach 2016 103-3 Evaluation of the management approach 26 36 Sustainable Sustainable 2016 103-2 The management approach and its components Environment Environment 302-1 Energy consumption within the organization 26 103-3 Evaluation of the management approach 36 Low Carbon & Energy GRI 302: 302-3 Energy consumption outside of the organization 26 Greenhouse Gas Energy 2016 GRI 401: 401-1 New employee hires and employee turnover* 38 302-4 Energy intensity 26 Sustainable Design Employment 401-2 Bene ts provided to full-time employees that Environmental 2016 are not provided to temporary or 46 Protection Environmental- Emissions Joyful Work Joyful Work part-time employees Employment GRI Standards Disclosure Page Omission Relationship GRI 103: 103-1 Explanation of the material topic and its Boundary 27 Social-Labor management relations Attracting & Management Nurturing Talent 103-2 The management approach and its components 27 GRI Standards Disclosure Page Omission Occupational Approach Health & Safety 2016 103-3 Evaluation of the management approach 27 GRI 103: 103-1 Explanation of the material topic and its Boundary 45 Employee Care Management 305-1 Direct (Scope 1) GHG emissions 27 103-2 The management approach and its components 45 Social Care Social Care Approach GRI 305: Social Welfare 305-2 Energy indirect (Scope 2) GHG emissions 27 2016 103-3 Evaluation of the management approach 45 Emissions Community 305-4 GHG emissions intensity 27 GRI 402: Labor 402-1 Minimum notice periods regarding operational 37 Involvement 2016 Appendix-Index Appendix-Index 305-5 Reduction of GHG emissions 26 Management changes GRI Standard Index Relations2016 United Nations Global Environmental- E uents and waste Compact Index Sustainability GRI Standards Disclosure Page Omission Development Goals of the United Nations GRI 103: MGT 103-1 Explanation of the material topic and its Boundary 31, 32 Statement Approach 2016 103-2 The management approach and its components 31, 32 54 Social-Occupational health and safety Editorial Principles Editorial Principles United Nations Global Compact GRI Standards Disclosure Page Omission A Word from A Word from the CEO the CEO 103-1 Explanation of the material topic and Identi cation & Identi cation & GRI 103: 40 Communication Communication Management its Boundary Category Principle Page No. Social Responsibility Approach 103-2 The management approach and its components 40 Commitment 2016 Businesses should support and respect the protection of internationally Stakeholder 103-3 Evaluation of the management approach 40 proclaimed human rights. 37 Communication Human 403-1 Workers representation in formal joint Rights Businesses should make sure that they are not complicit in human Material Issue 37 Identi cation GRI 403: management–worker health and 40 rights abuses. Occupational Sustainability safety committees Businesses should uphold the freedom of association and the e ective Development Goals Health and 403-2 Types of injury and rates of injury, occupational recognition of the right to collective bargaining. 37 Company Pro le Company Pro le Safety2016 About PEGATRON diseases, lost days, and absenteeism, and 41 Businesses should uphold the elimination of all forms of forced and Financial Performance number of work-related fatalities Labor compulsory labor. 37 Globalization Businesses should uphold the e ective abolition of child labor. 37 Arrangement Social-Training and education Award List Businesses should uphold the elimination of discrimination in respect of 37 Sustainable Sustainable GRI Standards Disclosure Page Omission employment and occupation. Management Management GRI 103: Corporate Governance Corporate Governance 103-1 Explanation of the material topic and its Boundary 39 Businesses should support a precautionary approach to Management 28 Code of Conduct Code of Conduct 39 environmental challenges. Approach 103-2 The management approach and its components Information Security Information Security Businesses should undertake initiatives to promote greater 2016 103-3 Evaluation of the management approach 39 Environment Risk Management Risk Management environmental responsibility. 31 Regulatory Compliance Regulatory Compliance GRI 404: 404-1 Average hours of training per year per employee* 40 Businesses should encourage the development and di usion of Responsible Responsible Training and 28 Partnership Partnership 404-2 Programs for upgrading employee skills and environmentally friendly technologies. Education 2016 39 Customer Service transition assistance programs Anti- Businesses should work against corruption in all its forms, including 15 Sustainable Corruption extortion and bribery. Supply Chain Corporate government 14, 15 Sustainable Sustainable Environment Environment Risk management 17 Low Carbon & Energy Green product 28 Greenhouse Gas Con ict minerals 23 Sustainable Design Environmental *: Not core option. Protection Joyful Work Joyful Work Employment Relationship Attracting & Nurturing Talent Sustainability Development Goals (SDGs) of the United Nations Occupational Health & Safety Employee Care Social Care Social Care Sustainability Sustainability Development Goals Social Welfare Development Page No. Omission Community Goals (SDGs) Goals Targets Actions Involvement Appendix-Index Appendix-Index Implement gender equality policy. 37 GRI Standard Index E Maintain the Equality Eliminate discrimination of gender.
United Nations Global of Society Realize Gender Equality in Workplace. Provide multiple grievance channels. 45 Compact Index (Equality) Sustainability Build a friendly workplace. Development Goals Promotion Maternity Protection. 37, 42 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 & Improve the eciency of energy use. Build energy monitoring system. Communication Communication M Bene t the 26 Social Responsibility Environment towards Commitment Use Current Energy with a Greener Way Mutualism Reduce the cost of energy. Implement energy management Stakeholder 26 Communication (Mutualism) and reduction projects. Material Issue Identi cation Sustainability Encourage Employment localization. 36 Development Goals Boost the Growth of Create employment, cultivate and G Economy Company Pro le Company Pro le retain the talents. Perform employee individual 40 About PEGATRON (Growth) development plan (IDP). Financial Performance Elevate the Economic Performance Protect labor rights. Provide multiple grievance channels. 45 Globalization and Workplace. Arrangement Maintain the Equality Perform voluntary employment policy. 37 Award List E of Society Prevent involuntary labors. Sustainable Sustainable (Equality) Perform no child labor policy. Management Management 37 Corporate Governance Corporate Governance Code of Conduct Code of Conduct M Bene t the Environment Sustainable design. Conduct HSF management 29 Information Security Information Security towards Mutualism Risk Management Risk Management (Mutualism) Build pollution prevention control facility Prevention of pollutions 31, 32 Regulatory Compliance Regulatory Compliance Engage in Responsible Consumption or devices and conduct the monitoring Responsible Responsible and Production. Due diligence investigation of Partnership Partnership Maintain the Equality Responsible sourcing 23 Customer Service E of Society con ict minerals Sustainable (Equality) Supply Chain Sustainable supply chain. Conduct supply chain management 21 Sustainable Sustainable Environment Environment Conduct greenhouse gas emissions Bene t the Environment Evaluate and Mitigate the Impact on Reduce the risks of climate change on the 26, 27 Low Carbon & Energy M towards Mutualism Climate Change. operations to each site. reduction projects. Greenhouse Gas ( utualism) Sustainable Design M Enhance energy eciency. 26 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 Standard 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 Standard 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 Core option of GRI Standards issued by Global Sustainability Standards Board (GSSB). In order to increase the transparency and reliability of the report, the content was veri ed by an independent third party, BSI Taiwan, based on AA1000 AS (2008), and complied with core option level of GRI Standards. The Veri cation Statement is attached as appendix of this report. For nancial data, refer to the nancial statements 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 | Sharon Hsieh | Burdey Cheng E-mail: [email protected]│[email protected] Address: No. 76, Ligong St., Beitou District, Taipei City 11261, Taiwan Website: http://www.pegatroncorp.com/