2013 CORPORATE SUSTAINABILITY REPORT OF PEGATRON GROUP version1.0 Editorial Principles Management Sustainable Environment Stakeholder Engagement and A Word from the CEO identif ication of key Issues Low Carbon
Risk Management GHG Management About Pegatron Group Corporate governance Sustainable Design Financial Performance Environmental Protection Code of Conduct Financial Snapshot Public Communication Joyful Working Investment Strategy Partnership Attracting and Nurturing Talent Award List Participation & Commitment Employee Communication and Care
Customer Relationship Prevention of Occupational Hazards Customer Satisfaction Public Welfare Privacy and Information Security GRI Content Index 2013 sustainability report sustainable environment Editorial Principles
Editorial Principles A Word from the CEO citizen. We issued our corporate sustainability report every year. The report includes corporate governance and social, economical and About Pegatron Group environmental performance. In 2014, we issue our sixth corporate Financial Performance Financial Snapshot issues and performance in 2013. The report will be issued every year Investment Strategy and published on Pegatron Group’s website for stakeholders’ reference. Award List Management Stakeholder Engagement and The corporate sustainability report is written by CSR Implementation identif ication of key Issues Committee members following the principles and framework Risk Management established by Global Reporting Initiative's Sustainability Reporting Company Governance Guidelines (GRI, G3). The period of report is from January 1, 2013 to Code of Conduct December 31, 2013. Furthermore, the scope includes Headquarter of Communication Pegatron Group, Taoyuan Manufacturing Center, Central China Operation Center, East China Operation Center, Mexico Plant and Czech Partnership Republic plant. The maintenance plants and subsidiaries are excluded Participation & Commitment in the report. Customer Relationship Customer Satisfaction Privacy and Information Security Sustainable Environment Low Carbon GHG Management Sustainable Design Environmental Protection Joyful Working Attracting and Nurturing Talent Communication and Care Prevention of Occupational Hazards Should you have any query or comment about this corporate Public Welfare sustainability report, please feel free to contact us: GRI Content Index PEGATRON Corporation HR & ADM Center : Candice Liao E-mail : [email protected] Address : No. 76, Ligong St,. Beitou, Taipei 112, Taiwan 2013 sustainability report sustainable environment Editorial Principles
Editorial Principles Being Accountable, PEGATRON enthusiastically confronts environmental sustainability issues and to integrate the concepts of innovation and eco-friendly in product design. We make great efforts on carbon reduction to A Word from the CEO Focused and towards Continuous Improvement products in manufacturing, delivery and disposal, and to regard the balance between economic, social and ecological aspects as the first priority during operations. In order to become more sustainable, we About Pegatron Group Since establishment, PEGATRON holds the spirit of innovation and not only set up the greenhouse gas reduction projects every year, but also have established a Financial Performance continuous improvement to integrate sustainable development into long-term reduction goal, 21% GHG reduction per revenue from 2009 baseline level by 2020, to show Financial Snapshot company policy and operational strategy. In order to take every the PEGATRON’s determination of carbon reduction. Investment Strategy responsibility of being as a sustainable corporation, we respect labor Award List rights and business ethics, and keep emphasising on eco environment Looking ahead in 2014, PEGATRON seeks new development and social participation. We are not only rewarded with “National opportunities and driving force to modify the operational Management Sustainable Development Award” in 2012, through continuous processes to be optimized, and to enhance the Stakeholder Engagement and improvement, we are also rewarded with “Industrial Award” in 2013. comprehensive operational performance through identif ication of key Issues We achieve practical and stable growth by cooperation and resource diverse strategic management and efficient Risk Management re-arrangement, and to reach the commitment of corporate social resource integration. We do not fear the changes Company Governance responsibility. of external environment and lead the whole company Code of Conduct staff to hold the keys to success by strengthening the Communication We believe that employees are the treasures of a company, so we company structure and having an insight into Partnership endeavor to provide satisfactory work environment and opportunities the beating of technology. Participation & Commitment for employees to attract global talents. Besides, in 2013, we introduce a Customer Relationship talent culture project to enhance the professionals and to accumulate Customer Satisfaction the experiences of employees. The project is initially focused on the Privacy and Information Security medium and high level supervisors and then to deploy to every employees step by step. We will lead all employees by continuous Sustainable Environment improvement of the organization and to enhance corporate competi- Low Carbon tion towards sustainability. GHG Management Sustainable Design As a corporate citizen, we appreciate all unique values of every employ- Environmental Protection ee, and to display the respects and cares to them by listening to the Joyful Working voices from primary employees through diverse communication Jason Cheng Attracting and Nurturing Talent channels. We provide development opportunities for our staff to realize President & CEO of Pegatron Communication and Care their talent and reach their accomplishments during work. In addition Prevention of Occupational Hazards to well treat our staff, we cooperate with our customers and suppliers to promote corporate social responsibility into the supply chain. We do Public Welfare our due diligence to avoid the use of conflict minerals and keep paying GRI Content Index attention to business ethics and labor right to fulfill the corporate responsibility. Company Profile
company Competence both in Design and Manufacture prof ile 2013 sustainability report sustainable environment Company Profile
Editorial Principles About Pegatron Group Financial Performance A Word from the CEO The Pegatron Group was separated from ASUStek on January 1st, 2008; The consolidated revenue reached NT$949.8 billion in 2013, a 8% increase compared with NT$881.2 the separation differentiates the group’s focus in the field of providing billion in 2012, mainly contributed by mobile devices growth.Pegatron Group enjoyed tax reduction About Pegatron Group design and manufacture services. The parent company, Pegatron of TWD58 million in 2013 as an encouragement for implementation of investment according to Financial Performance Corporation, was certif ied as a legal listing on June 4th, 2010, and is statutory regulations. Financial Snapshot eligible for stock purchasing since June 24th, 2010 along with ASUStek. Investment Strategy Award List Pegatron Group offers wild range of electronics products in Financial Snapshot Management computing,communications and consumer electronics segments, Stakeholder Engagement and including Notebook PCs, Netbook PCs, Desktop PCs, Tablet PCs, Mobile identif ication of key Issues The brief consolidated income statement of Pegatron and its subsidiaries for the year ended 2012 and Internet Devices (MID),Motherboards, VGA Cards, Cable Modem, 2011 are as following. Risk Management Set-Top Box, Smartphones, Game Consoles, MP3s, E-Readers etc. We Company Governance also engage in development, design and manufacturing of peripherals Code of Conduct and components of the above-mentioned products. In addition to the Unit: TWD in million Communication well diversified product portfolio, the Company also places great 2013 2012 Partnership emphasis on development of both software and hardware Operating revenue 949,752 881,197 Participation & Commitment technologies to provide customers with total solutions and high Cost of Sales 904,235 844,165 Customer Relationship value-added services. Gross profit 45,517 37,032 Customer Satisfaction Operating Expenses 29,940 24,821 Privacy and Information Security Pegatron Group focused on the development of core technology in Operating Income 15,577 12,211 Sustainable Environment software and hardware with complete solutions towards a high Non-operating income & expenses 3,453 1,968 Low Carbon value-added products and services provider. Apart from its original GHG Management foundry service in 3C products, Pegatron Group is aiming to provide Profit before tax 19,030 14,179 Sustainable Design and develop its accreditations also as a designing company, including Tax Expense 4,783 3,843 Environmental Protection art, optical and living quality goods. Pegatron Group will be providing Profit 14,247 10,336 all professional services to be a one stop shop for production solution; Joyful Working Income after Income Tax 3,917 (2,978) while the clients can put more focus in the area of product branding Attracting and Nurturing Talent and distributing. Comprehensive Income 18,164 7,358 Communication and Care Profit, attributable to owners of parent 9,554 6,383 Prevention of Occupational Hazards Comprehensive income, attributable to 12,904 3,819 Public Welfare owners of parent GRI Content Index 2013 sustainability report sustainable environment Company Profile
Editorial Principles Investment Strategy 【The illustration of above mentioned categories】 A Word from the CEO In terms of high technology industry around the world, Taiwan is placed About Pegatron Group in a signif icant position. Many famous brands rely on innovation and AzureWave Lumens Camera Protek Optoelectronics Financial Performance flexible researching skills of Taiwan’s technology. Originally, original Module Casetek CaseTek Financial Snapshot equipment manufacturing (OEM) companies provide the new / / Investment Strategy technology in manufacturing products and another design f irms ASRock Riteng Kaedar / Ability PC MB Maintek Digitek Award List provide the product creativities. Pegatron Group sees the potential in AVY Metal, DSC the current OEM trend and wishes to incorporate a complete DMS Plastic, Management Light Metal, Tooling Anodizing production; hence, they are providing a new type of service called DMS; Kinsus/ Piotek E-Packing Stakeholder Engagement and Design & Manufacture Services. IC Substrate, Packing Design identif ication of key Issues PCB Juarez, Ostrava, Mexico Czech Risk Management Company Governance Code of Conduct Major investment of Pegatron Group can be mainly divided in the Communication following three categories: Strategic Investment Vertical Integration Core Bussiness Vertical Integration Strategic Investment Partnership (1) DMS core business: Central China operation center (Maintek Participation & Commitment Suzhou); Eastern China operation center (Protek Shanghai); Western Customer Relationship China operation center (Digitek Chongqing), Pegatron Mexico and Customer Satisfaction Pegatron Czech Republic; Privacy and Information Security (2) Vertical Integration: Casetek (Suzhou);Kaedar Electronics (Kunshan); Sustainable Environment Casetek Holdings Ltd.(Cayman); Low Carbon GHG Management (3) Strategic Investment: Ability; Kinsus/Piotek; Asrock; Azurewave and Sustainable Design Lumens. Environmental Protection Joyful Working Attracting and Nurturing Talent Communication and Care Prevention of Occupational Hazards Public Welfare GRI Content Index 2013 sustainability report sustainable environment
Editorial Principles (1) Deployment of DMS Core Business (2) Deployment of Vertical Integration A Word from the CEO Maintek Computer (Shanghai) Co., Ltd manufactures Notebook, Invested categories Company name Remark Desktop, Motherboard, CE, Networking and LCD TV, while Protek Mechanical component Casetek computer (suzhou) co., ltd. In additional to mental stamping for desktop (Shanghai) Limited mainly manufactures CE and handheld device. About Pegatron Group pc, casktek has gradually developed technolo- Besides, Digitek Computer (Chongqing) Co., Ltd principally manufactures Financial Performance gy in plastic injection and has become the Notebook. As a result of the free trade zone in North America and Financial Snapshot main manufacturing site of mechanical tax regulations by European Union and in order to enhance customer Investment Strategy components in the group. service in both regions, Pegatron Mexico, S.A. DE C.V and Pegatron Czech Award List s.r.o. (“PCZ”) were established as the major manufacturing sites in America Kaedar electronics (kunshan) co.,ltd. Established via joint venture Management and Europe respectively. Indeed electronics (shanghai) co., ltd. Stakeholder Engagement and identif ication of key Issues Avy precision electroplating (suzhou) Risk Management co., ltd.Core-tek (shanghai) limited Company Governance Hong hua technology (suzhou) co., Code of Conduct ltdGhing hong precise mould Communication industry (suzhou) co., ltd Dongbu zsc
Partnership Ostrava, Casetek Holdings Ltd.(Cayman) A light metal manufacturing company; we Czech Tokyo, Japan Participation & Commitment Indiana, Suzhou, US China merge it through acquisitions. Customer Relationship Customer Satisfaction Privacy and Information Security Shanghai, Sustainable Environment China Low Carbon (3) Deployment Strategic Investment Juarez, Headquarters GHG Management Mexico Taipei, Taoyuan, Taiwan Taiwan Sustainable Design Company name Remark Chongqing, China Environmental Protection Ability enterprise co., ltd. Given ability’s excellent r&d and sales capabilities, the strategic alliance was therefore São Paulo, Joyful Working Brazil established in order develop optic related consumer products. Attracting and Nurturing Talent Asrock incorporation Manufacturing and sales of a leading brand in low to mid end motherboard Communication and Care Kinsus interconnect technology Manufacturing and sales of bga ic substrate and pcb Manufacturing Site Service Center Design Center Prevention of Occupational Hazards corporation/piotek holding limited Azurewave technologies inc. Public Welfare Lumens digital optics inc. Major products including special purpose projectors and light engines for large screen GRI Content Index monitors 2013 sustainability report sustainable environment Company Profile
Editorial Principles Award List A Word from the CEO Product Design Award List About Pegatron Group Issued by Works Name Award Descriptions Financial Performance Financial Snapshot Investment Strategy Award List Inshell provides a solution to the storage issue of door stopper by integrating Management it with Inshell door handle. The lever handle functions comfortably in hand Stakeholder Engagement and Inshell Door Handle & Japan Good Design Award with / without a door stopper, and its minimal form design are highly identif ication of key Issues Door Stopper Germany iF product design award influenced by the function. Personalized combinations of material and color Risk Management are also available for all styles. Company Governance Code of Conduct Communication Partnership Participation & Commitment Braille reading machine is a brand new product designed and developed by Customer Relationship PEGATRON independently in 2012. This slim and smart product helping visually Customer Satisfaction Impaired people to learn reading is developed according to deep marketing Privacy and Information Security investigation, testing and integration of multiple fields. PEGA Design adopts Braille Reading Machine China Red Star Design Award Sustainable Environment PEGATRON’s abundant experiences on product development, and combines the design capacity of ID team and technology of mechatronics to help more Low Carbon people. Braille reading machine helps visually impaired children to learn braille GHG Management with a more efficient way before/ after they go to school. Sustainable Design Environmental Protection Joyful Working From Smart to Savvy is a subject of 2012 taipei Computex of PEGATRON which is delivering a different point of view from the manufacturer's mindset, Attracting and Nurturing Talent emphasizing a new relationship between smart and sawy. Communication and Care From Smart to Savvy Germany iF Communication Design Award Prevention of Occupational Hazards Public Welfare GRI Content Index 2013 sustainability report sustainable environment Company Profile
Editorial Principles CSRIssued Sustainability by Award Works List Name Award Descriptions
A Word from the CEO Issued by Award
•Labor Standards Inspection Office Taipei City Government •Labor Safety Award About Pegatron Group •Industrial Development Bureau. Ministry of Economic Affairs •Industrial Sustainable Excellence Award Headquarters Financial Performance Financial Snapshot Investment Strategy Award List •Shanghai Pudong New Area Business Commission •2012 Pudong New Area Trade in Goods Contribution Award •Pudong New Area Trade Union Pudong New Area Civilization Office •2011-2012 Pudong New Area Civilization Team Management Eastern China Operation Center • Pudong Federation of Trade Unions •Worker Vanguard Stakeholder Engagement and identif ication of key Issues Risk Management Company Governance Code of Conduct Communication Partnership Participation & Commitment Customer Relationship Customer Satisfaction Privacy and Information Security Sustainable Environment Low Carbon GHG Management Sustainable Design Environmental Protection Joyful Working Attracting and Nurturing Talent Communication and Care Prevention of Occupational Hazards Public Welfare GRI Content Index Management
To respect stakeholders such as customers, employees, investors, suppliers, local communities and authorities has positive contribution toward management Pegatron Group’s development 2013 sustainability report sustainable environment Management
Editorial Principles Due to the short life cycle of electronic products, and the high demand 【 A Word from the CEO importance. The highly concerned issues as listed in the following table】 requirements from the market, and need to face the multiple
Stakeholder Groups Stakeholder Concerns About Pegatron Group variegated electronic products manufacturing market, the requests Financial Performance Ethics and Honest Supply Chain Management Financial Snapshot Hazardous Substances Restrictions Speed of Product R&D Investment Strategy Compliance Technology Development Award List best solutions to comply with sustainability. Customers Cost Competitiveness Chemicals Management Management EICC Compliance Disaster Recovery Stakeholder Engagement and identif ication of key Issues Reliability / Quality Risk Management Stakeholder Engagement and identif ication of key Issues Green Products Company Governance Code of Conduct Pegatron Group’s corporate social responsibility is planned, operated Employees Employee Welfare Career Development Communication and implemented by PureCSR committee. The committee members Working Condition Health & Safety Partnership include the units of Environmental, safety & health, Human Resources & Participation & Commitment Administration, Finance, Procurement, Customer Service, Investment, Market share Customer Relationship Investors Business & Financial risks Business Continuity Customer Satisfaction according to their jobs and make responses to any concern arose from Risk Management Compliance Privacy and Information Security daily routine. Any inter-departmental issues will be discussed in Suppliers/ Outsourcers/Contractors Compliance Green Product Requirements Sustainable Environment PureCSR Committee meetings and dealt in cooperation with related Health & Safety Low Carbon departments. Communities GHG Management Working Condition
Sustainable Design Ethics Environmental Performance and Carbon Environmental Protection Competitors Reduction Target CSR Implementation only collected the suggestions from the personnel who may contact Joyful Working Attracting and Nurturing Talent public website. Through the in-direct and open channels, we can Communication and Care Prevention of Occupational Hazards present the determinant issues. Public Welfare GRI Content Index 2013 sustainability report sustainable environment Management
Editorial Principles Risk Management Risk Category Description A Word from the CEO Property 1. In order to achieve the target of sustainable development and to insurance coverage includes structures, business repairs, equipment, business appliances, miscellaneous equipment…etc. And the loss preventions are conducted and arranged every year (such as infrared detection and plan check). About Pegatron Group several kinds of risk during corporate operation. For being towards Financial Performance 2. The company – Pegatron, apply STP (Stock throughput) insurance includes standard and excess insurance for all goods. The STP insurance sustainability, risk management is not only taken into our daily cover 110% of invoice value of goods in transit and arrange the risk prevention course by yearly base. (Cargo transportation risk prevention Financial Snapshot operations, but also regarded as one of determinant factors in advices and training courses.) Investment Strategy corporate governance. Award List Hazardous Pegatron Group built Materials Management e platform and many relevant internal procedures to control materials. Besides, we not only Substance
Management 【The risks are as the following table】 customers’ requirement, and requested our suppliers to comply with. Stakeholder Engagement and identif ication of key Issues Risk Category Description Customers and In order to meet the requirements from customers and to make sure all stage of operation, production and service, we have a procedure for Legal Requirements Risk Management personnel to check the compliance of all relevant requirements, and to modify the internal procedures and conduct the operational control Compliance Company Governance 1. Market risk measures. The Company’s purchases and sales are denominated mainly in US dollars, and in Code of Conduct consequence, it is exposed to the current and future foreign currency risk that arises Raw Materials Communication and Manufacturing cost reduction. For production security, however, certain manufacturing processes are still required to be conducted manually. To response this issue, we invest Safety in automation equipment to reduce the reliance on labor and improve product quality. Besides, allocate labors across manufacturing sites Partnership appropriately and minimize the impact of labor shortage. Participation & Commitment 2. Credit risk Customer Relationship Information Security our business can operate continuously and the loss can be eliminated as lowest as we could. We strengthen the actual construction and Customer Satisfaction
Privacy and Information Security cash and equity securities. The Company only transacted with the approved third Sustainable Environment
Low Carbon guarantees or transacting by L/C. Therefore, the Company believes that there is no Finance GHG Management credibilityevaluation policies, the Company evaluates the customer’s credibility and Sustainable Design collectability of notes and account receivables regularly before doing business. Thus, Environmental Protection The major customers of the Company are concentrated in the high-tech computer Joyful Working Attracting and Nurturing Talent reduce credit risk from accounts receivable. Moreover, the Company also periodically Communication and Care Prevention of Occupational Hazards 3. Liquidity risk Public Welfare contractual obligations; therefore, no liquidity risk exists. GRI Content Index The Company’s interest rate risk arises from short-term and long-term loans bearing
interest rate. 2013 sustainability report sustainable environment Management
Editorial Principles Company Governance The 9 directors of PEGATRON, including 3 independent directors, are re-elected in the board meet- ing on 19 Jun, 2013. We recruit professionals from various fields and establish the Audit Committee A Word from the CEO to substitute the supervisors. The key factor of successful company governance, in addition to the involvement of managements and employees, is the support from About Pegatron Group stakeholders, transparency of a company’s governing mechanism 【Introduction of Board of Directors and Supervisors is as the following table】 Financial Performance and structure. In June, 2010,Pegatron Group was becoming a listed Financial Snapshot company. All operations followed with the Best Practice Principals Title Name Education and Experience Current Function Investment Strategy for TSEC/GTSM Listed Companies and related regulations. In terms •Chairman of Pegatron Corp. Award List of governance, Pegatron Group has established independent direc- Chairman T.H. Tung •Master degree in Computer and Communication Engineering, National Taipei University of Technology •Chairman of Kinsus Investment Co.,Ltd. tors, supervisors, and internal audits. Because of tenure expired of •Director of Asrock Incorporation •Deputy General Manager of ASUSTeK Computer Inc. (“Asus”) Management BOD, Pegatron established the Audit Committee to substitute the •Managing Director of Ability Enterprise Co., Ltd. Stakeholder Engagement and supervisors in June, 2013. We also value the importance of disclos- Director Ted Hsu •EMBA , National Chiao Tung University •Chairman of ASRock INC. identif ication of key Issues ing information that is complete, timely and transparent. •Deputy General Manager of ASUS •Chairman of AzureWave Technologies, Inc •Deputy Chairman of Pegatron Corp. Risk Management Company Governance In addition to the financial information, reports, annual reports and Director Jason Cheng •Master degree in Electrical Engineering, •Director and CEO of Pegatron Corp. University of Southern California Code of Conduct •Director of AzureWave Technologies, Inc. crucial information announced on the Stock Exchange Market •Deputy General Manager of ASUS Communication Observation Post, the mentioned and relevant information is also available on Pegatron Group official website (http://www.pegatron- Director K.C. Liu •Bachelor degree in Communication Engineering, •Chairman of Advantech Co., Ltd. Partnership National Chiao Tung University •Chairman of Advansus Corporation. corp.com) as a reference for domestic and foreign investors. •Founder of Advantech Co., Ltd •Chairman of Advantech Investment Fund - A Co., Ltd. Participation & Commitment Director C.I. Chia •MBA, University of Wisconsin-MadisonVice President, •Director of Yangtze Associates Independent Customer Relationship Citibank, N.A.Taipei Branch President, Individual Financial The company’s directors and supervisors all have necessary man- •Director of Ardentec Corporation Customer Satisfaction agement expertise. Also, they try to acquire and enhance their •Services Group, Bank SinoPac Privacy and Information Security knowledge continuously.This CSR report also discloses operations of Director C.V. Chen •S.J.D., Harvard Law School •Chairman and Managing Partner of Lee and Li Attorneys- the board, as well as other relative information such as remunera- •Vice Chairman, Secretary General and Director of Straits At-Law •Director of Asia Cement Corporation Sustainable Environment tion of the directors and the supervisors.As regulated in “The Exchange Foundation •President of The Red Cross Society of The Republic of China •Director of Novartis Taiwan Low Carbon Articles of association,” the remuneration of the directors and the GHG Management supervisors cannot be higher than 1% of net income and is linked to Independent C.B. Chang •B.S., Statistics, National Chengchi University •Honorary Chairman of Polytronic Technology Corp. Director •Deputy General Manager of China •Independent Director of Raydium Semiconductor Corp. Sustainable Design operational performance of the company. Besides, according to the •Development Industrial Bank •Independent Director of Scientech Corp. Environmental Protection modification of legal requirements, in 2011, we are going to set up a •Manager of Far Eastern Textile Ltd. “Salary reward committee” to evaluate and propose the rewards to Joyful Working Independent C. Lin •Ph.D. Economics, University of Illinois •Adjunct Professor of Economics at National Taiwan University directors and managers. Director •Minister of Finance of R.O.C •Director of Chartis Taiwan Insurance Co., Ltd. Attracting and Nurturing Talent •Chairman of Vanguard International Semiconductor •Independent Director of Casetek Holdings Limited Corporation Communication and Care Not only the directors should participate in the board meetings, the Prevention of Occupational Hazards independent directors should also provide constructive suggestions Independent C.S. Yen •Provincial Keelung Senior High School •Group President of Landis Hotels and Resorts •Independent Director of Shinkong Insurance Co., Ltd. after actively understanding the operational status of the company. Director •Country Manager of American Express Inc. Public Welfare •General Manager of the Grand Hotel Besides, the Audit Committee will monitor the amendment of •Young Presidents’ Organization (YPO) Asia Conference GRI Content Index internal control system to ensure the quality of the decision-making •Chairman for Asia Pacific region of The Leading Hotels of The World process done by the board. 2013 sustainability report sustainable environment Management
Editorial Principles 【List of Major Shareholder】 Industry Citizenship Coalition (EICC)” to comply with the “Electronic Industry Code of Conduct”. We also formulated “Business Ethics Code of Conduct” as an internal management procedure to A Word from the CEO As of 04/21/2013 request all employees to obey. Shareholder's Name Shareholding Percentage About Pegatron Group Besides, we have confidential grievance channels to report any misconducts in the areas of signifi- Asustek Computing Inc. Financial Performance (Representative: Jonney Shih) 24.08 cant financial, operational and management issues. Employees may also repot any misconduct or Financial Snapshot T.H.Tung 4.00 file complaints to Internal Audit Office. An audit report will be checked and reviewed by Internal Audit Office on a monthly basis and be sent to the supervisors and the independent directors. Investment Strategy Citi (Taiwan) Bank in custody for Government of 3.46 Singapore Investment Corporation Award List Jonney Shih 2.93
Management Ted Hsu 2.45 Stakeholder Engagement and Nan Shan Life Insurance Company, Ltd. 2.28 identif ication of key Issues Public Communication GDR – Pegatron Corporation 2.27 Risk Management Company Governance Standard Chartered Bank in custody for INFINITY GROW 1.72 INTERNATIONAL LIMITED Since Pegatron listed on Taiwan Stock Exchange in June 2010, the Company has set up a designat- Code of Conduct CTBC Bank in custody for Pegatron Corporation 1.44 ed team including the Corporate Information Department and spokespersons to communicate Communication Standard Chartered Bank in custody for VANGUARD EMERGING 1.41 with investors, analysts, media, and institutional investors through quarterly IR conferences, MARKETS STOCK INDEX FUND, A SERIES OF VANGUARD one-on-one meetings, teleconferences, domestic/overseas non-deal road shows, etc. During the Partnership INTERNATIONAL EQUITY INDEX FUNDS Participation & Commitment meetings, various topics are discussed including business operation, financial performance, corpo- rate governance, etc. Through interactive communication with investors, their valuable opinions Customer Relationship can be delivered to Pegatron’s management . Customer Satisfaction Privacy and Information Security Code of Conduct In order to enhance the communication between Pegatron and investors, the Company has set up Sustainable Environment an investor relations section on the corporate website to disclose information regarding the Com- Because of the importance of business ethics and corporate Low Carbon pany’s business operation. The Company also has a designated team to provide services to inves- responsibility is getting greater than before, a sustainable corporate GHG Management tors with any inquiries. The Company hopes to establish multiple communication channels, so that should earn the reliability and respect from all kinds of consumers, its Sustainable Design investors can have a better understanding of recent Pegatron’s business operation of Pegatron Group. Environmental Protection core value of Pegatron Group, and it is the basic discipline of us as well. Joyful Working From the management level to general employees, we commit to In addition, Pegatron holds investor conferences to announce the results and business outlook on a Attracting and Nurturing Talent quarterly basis every year. In these conferences, the company announced not only the quarterly Communication and Care internally, but also promote to our supply chain to build a good result but also business outlook in the next quarter. Furthermore, pursuant to local regulations, Prevention of Occupational Hazards business environment together by announcement and inviting them annual general shareholders’ meetings are held every year, which allows shareholders to get a to sign the honest commitment letters. better grasp of the Company’s performance in the past year and business goals in the coming year. Public Welfare GRI Content Index In order to be towards sustainability, Pegatron Group not only implemented the relevant actions internally but also joined “Electronic Partnership
partnership The function of partnership is to act as a connection role in entire value 2013 sustainability report sustainable environment Partnership
Editorial Principles Participation & Commitment Customer Relationship A Word from the CEO As a member of Electronic Industry Citizenship Coalition (EICC), WE The business strategy of Pegatron Group is to be an expert in design and manufacturing and to continuously participate in the conference every year and have improve the service process for global arrangement and meeting customer’s need. By providing the About Pegatron Group complete services, we can earn the trust and satisfaction from customers. Financial Performance sustainability. Also, we respond several corporate responsibility projects Financial Snapshot “Navigate the Future” is Pegatron Group’s business concept and philosophy. We navigate for our Investment Strategy resources reduction, we invited our major suppliers to join these customers to obtain business opportunities ahead of the market with our innovative technology and Award List projects and improved their sustainable ability. designing for service. We provide new integrated service from designing, manufacturing to after-sales Management Stakeholder Engagement and identif ication of key Issues Pegatron Group plays a determinant role in the electronic products Risk Management supply chain, so that the management of supply chain is an important Communication , According Company Governance issue to us. According to the requirements of customers, authorities and Repair Code of Conduct Customized international trend, we formulated internal procedures to monitor the System Center Communication performance of suppliers, including a public conference and periodical Partnership audit. Besides, we held several educational training to introduce the sustainable spirit and ability into the supply chain. Customer Participation & Commitment Project Service Core Oversea Planning service Customer Relationship Team Service Customer Satisfaction Privacy and Information Security In addition, we manage our vertical integration conglomerates and subsidiaries through the supply chain management process. Material Technique Sustainable Environment Control Support 3rd Low Carbon Party GHG Management Alliance Forming Sustainable Design Environmental Protection Joyful Working Pegatron Group CSC develops a full set of complete solutions according to each client’s various needs Attracting and Nurturing Talent Communication and Care departments in order to adjust to the needs of customers. In this way, customers of CSC can enjoy the Prevention of Occupational Hazards
Public Welfare win-win for both parties. GRI Content Index 2013 sustainability report sustainable environment Partnership
Editorial Principles Service and the most advanced facilities and equipment, is able to provide customers with after-sales and A Word from the CEO Management Supply Chain maintenance services. With the capacity to completely repair a motherboard to a whole system, the Service B2B B2C Technical IT system About Pegatron Group Repair Support 3rd Party component suppliers, CSC provides our customers with the most secure, trusted, timely and high Mgt. Financial Performance Hub Mgt. quality service. E-Process Part Sales Service Financial Snapshot Rework Call Center E-Reporting Consulting Recycling Pre-screen Care Call Investment Strategy Knowledge-Base Service Board Repair Mail Center Packaging Programming Award List System System Repair Order Book Consulting Material Planning RMA Management Parts Dispatch Instant Service Repair Quality Receiving Pretest Repair Test Ship Out Analysis Return to Replacement Product Requisition Stakeholder Engagement and Vendor Service identif ication of key Issues Refurbishment Quality Mgt. Electronic Data Interchange Training Program Risk Management Company Governance Material Code of Conduct Circuit e-Circuit Knowledge Repair Customize control system systemE-Servicbasee system syetem report system Communication system We integrate the resources of our supply chain and frame the post-sale Partnership maintenance and service for controlling, management and delivery of Participation & Commitment E-Service Customer Relationship the shortest period of time because of a good working relationship Customer Satisfaction with upstream and downstream companies for the requirements of Privacy and Information Security professional materials, and rich supply chain management experiences. As mentioned, in order to meet customers’ needs to their global arrangement, our overseas customer Sustainable Environment service centers are located around the world. Low Carbon solutions to improve the level of satisfaction, we establish a technical GHG Management system through the product’s entire life cycle and focusing on every little detail. Sustainable Design comprehensive support, to customers around the world with our well-established service network. Environmental Protection
Joyful Working From developing new products to the end of a product’s life cycle, the Furthermore, we provide our customers with an integrated and individually tailored service, immediate Attracting and Nurturing Talent technical support department uses the concept of "design-for-repair" Communication and Care as a starting point. All the technical issues are noted and solved when management, friendly IT systems, worldwide service sites, and the greatest enthusiasm with superior Prevention of Occupational Hazards designing new products in order to improve our product quality, and commitment. Public Welfare thereby enable our customers’ to sell better and better. GRI Content Index 2013 sustainability report sustainable environment Partnership
Editorial Principles Customer Satisfaction Privacy and Information Security A Word from the CEO Pegatron Group CSC holds high expectations and responsibility for our As a best partner in green design, manufacturing and service for each customer, to protect customers’ service quality, but also attaches great importance to the voice of privacy and intellectual property is regarded as most important duty in Pegatron Group. To show our About Pegatron Group consumers. Through a customer satisfaction survey and a QBR Financial Performance (Quarterly Business Review) meeting, Pegatron Group CSC members Financial Snapshot can listen closely and directly to customers’ suggestions and concerns. Investment Strategy taken the responsibility of not spreading, not detecting and not obtaining to the information of Award List professional training are done within the timeframe set to correct any non-business scope. We earned customers’ trust by protecting their assets and proving a complete Management information security environment. Stakeholder Engagement and identif ication of key Issues Risk Management The customer satisfaction survey is based upon four dimensions: Company Governance "overall satisfaction", "service quality", "quality of maintenance” and an enterprise level security information task force governing the data to reduce the risk level and to Code of Conduct “supply management.” The results of the survey would be analyzed serve our customer needs. Measures taken as described below: Thorough scrutiny of entire end to end Communication business processes from data, business application, operation system, intranet & extranet management, amendments to the strategies and plans. Partnership Participation & Commitment authentication, limits of authority, application processes, ID application procedure, log control & Audit etc. Customer Relationship Pegatron Group CSC deems meeting customers’ and business partners’ Customer Satisfaction satisfaction as the highest priority. The company is proud of its global Privacy and Information Security logistics support in human resource, technology, and components. For the actual construction and building protection of information assets, we controlled the security in Sustainable Environment Pegatron Group CSC can provide timely and strong support to solve all entrances strictly and implemented the Disaster recovery System. Also, we implemented the Low Carbon complex problems with our expertise. When the customer service structure of High-Availability System to ensure the applicability of information continuity. We used GHG Management center receives customers’ queries, it promises to reply within 24 hours. encryption procedures to protect and control the access authority, including encryption and private communication protocol to protect the important data transmission. Sustainable Design Environmental Protection With the support of PureCSR management system, CSC team looks Joyful Working forward to expand its customer network through continual Attracting and Nurturing Talent commitment to customer service, enhancement of internal processes, Communication and Care and external establishment of a reputable corporate image. Pegatron Prevention of Occupational Hazards Group CSC’s ultimate goal is to meet 100% of customers’ demands and Public Welfare requirements. GRI Content Index Sustainable Environment
sustainable
To accomplish 3% electricity saving annually between 2010 to 2015, environment and to achieve a total 600 million NTD saving in utility cost. 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles With the evolution of society, the focus of environmental protection is not only traditional prevention and control. The lack of resources and Low Carbon A Word from the CEO climate change worldwide caused by rapid industrialization and the Since 2010, we set up a target, named “536 energy reduction project”, to lower the consumption of huge consumption of resources are not disregarded nowadays. As a energy by promotion of the energy saving projects and energy facilities. In addition, we introduced About Pegatron Group sustainable corporate, Pegatron Group enthusiastically faced the global energy saving concept into design for new buildings, new purchased facilities and office re-layout to Financial Performance issues including climate change, environmental protection and global realize the target of energy reduction from the sources. Financial Snapshot warming. We implemented several procedures to reduce the use of Investment Strategy resources and to perform greenhouse gas and energy management to Pegatron’s solutions to global warming are eco-friendly design and green manufacturing. We make Award List decrease the consumption of resources and greenhouse gases great efforts on carbon reduction to products in manufacturing, delivery and disposal, and imple- emissions. ment energy saving actions in daily management. In additional to the direct disclosure of treasuring Management the natural resources in our PUreCSR policy, we have established a long-term reduction goal, 21% Stakeholder Engagement and identif ication of key Issues GHG reduction per revenue from 2009 baseline level by 2020, to show the Pegatron’s determination of carbon reduction. Risk Management To meet our commitment, Pegatron Group disclose the responsibility Company Governance for environmental protection and greenhouse gas reduction in our In addition, Pegatron actively participates in the CDP (Carbon Disclosure Project) and awarded a Code of Conduct PureCSR policy: score of 83 by CDP in 2013. This score is higher than the average of the same trade. Communication Partnership 1. Abide by all environmental protection, labor, safety and health laws. Participation & Commitment 2. Conserve natural resources, and actively prevent pollution. Customer Relationship 3. Reduce environmental impact and safety risks. Customer Satisfaction Privacy and Information Security 4. Satisfy customer requirements and become an entirely green enterprise. Sustainable Environment Low Carbon 5. Enable company-wide promotion of corporate responsibility in a GHG Management social environment. Sustainable Design 6. Summon all employees to participate in the program and Environmental Protection continuously improve it. Joyful Working Attracting and Nurturing Talent As mentioned in our PureCSR policy, we treasure natural resources, Communication and Care protect the environment and prevent the pollutions to eliminate all Prevention of Occupational Hazards kinds of impacts on the environment. We also announced greenhouse Public Welfare gas inventory and verification project in the PureCSR principles to GRI Content Index timely response the carbon reduction requests from stakeholders. 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Because the use of purchased electricity is the main source of greenhouse gas emissions of Pegatron GHG Management Group, in addition to produce with lower energy consumption, we implemented several energy saving A Word from the CEO procedures in our daily operations which are not involved in direct manufacturing, such as power use In addition to the direct disclosure of treasuring the natural management, illumination management and air-conditions management t cy of resources in our PureCSR policy, our 536 energy reduction plan was electricity use. About Pegatron Group committed by chairman, TH Tung. We expect that we can contribute Financial Performance to global greenhouse gas reduction on the cooperation of all Financial Snapshot operation centers and sites. Investment Strategy Unit: MWh per million TWD in revenue Award List Pegatron Group try to reach the greenhouse gas reduction target in Electricity use analysis in Pegatron Group during 2009 to 2013 Management the stage of design and manufacturing through strengthening -0.75 % Stakeholder Engagement and energy conserv 0.70 -2.96 % identif ication of key Issues optimized evaluation of energy consumption and cost. 0.60 Risk Management -21.15 % Company Governance 0.50 -30.24 % Code of Conduct In order to implement the greenhouse gas management of 0.40 Communication Pegatron Group, headquarters and main manufacturing sites set up 0.30 “Greenhouse gas inventory committee” to conduct the inventory Partnership 2010 2011 2012 2013 management plan and identify the sig rces, and 2009 Participation & Commitment to draft the reduction target and plan. We spare no e orts to Customer Relationship 【Remark : 2009 is the base year.】 eliminate the impacts from business, production, activities and Customer Satisfaction services, and to take the responsibility for our environment. Privacy and Information Security In order to realize the goal of Pegatron’s 536 energy reduction plan, many reduction targets and objectives were performed by the main operation and manufacturing sites. We put e orts on several Sustainable Environment kinds of production and operation activities to reach the target for energy saving and carbon reduction Low Carbon Unit: metric tons per million TWD in revenue to reduce the environmental and economic impacts on greenhouse gas emissions. Through the GHG Management cooperation with all units in our company, we hope we can achieved the reduction target. We will pay Greenhouse gas emissions Analysis in Pegatron Group during 2009 to 2013 Sustainable Design more attentions on carbon reduction issue towards continuous improvement. 0.70 Environmental Protection -2.34 % -7.29 % Joyful Working 0.60 Attracting and Nurturing Talent 0.50 -30.06 % -30.22 %
Communication and Care 0.40 Prevention of Occupational Hazards 0.30 Public Welfare 2009 2010 2011 2012 2013 GRI Content Index 【Remark 1 : 2009 is the base year.】 【 】 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Energy Saving Procedures Pegatron Central China Operation Center (PSZ) : A Word from the CEO 1. Air conditioner: Headquarters Pegatron (HQ): (1) Use fresh air technology to lower the energy consumption in winter. About Pegatron Group 1. Switch the chiller system according to the best operation parameters. Financial Performance (2) To reuse the recycled waste heat of compressor to hot water in air conditioner to reduce the 2. Turn off the air conditioner system at night. Financial Snapshot energy consumption Investment Strategy 3. Replacement of more efficient lighting facilities in Headquarters. Award List (3) In order to reduce the electricity use of air conditioner, we lower the temperature by spraying Management water in the areas with steel structure in factories. Stakeholder Engagement and (4) To improve the cooling tower to enhance the energy efficiency. identif ication of key Issues Risk Management Manufacturing Center (TY): (5) To adjust the temperature of air conditioner water to decrease the energy consumption of cooling Company Governance 1. To announce the energy saving procedures. machines. Code of Conduct Communication 2. Scheduling the electricity use of facilities and turning off the unnecessary (6) To set up the electric fans if necessary. ones according to daily productions. Partnership (7) Recycling of cool-condensed water. Participation & Commitment Customer Relationship 2. Mech. & Elec. System: Customer Satisfaction
Privacy and Information Security (1) Energy saving improvement for electronic moisture-proof box. P e gatron East China Operation Center (PSH): Sustainable Environment (2) Energy saving improvement for heating in electric molding facility. 1. Ice-storage engineering project in F1/F2/F3/F4/F6 can transfer the contract Low Carbon capacity during the peak load of 540,565 KWh per year and to reduce the (3) To replace traditional light tubes with LED tubes. GHG Management electricity cost around 6,880,000 RMB every year. (4) To reduce the basic fee of electricity by introducing 110KV Power Sub-station. Sustainable Design Environmental Protection 2. The heat recycling engineering project of compressor in F5/F6/F7 can save the electricity use of 64,342 KWh per year and to reduce the electricity cost 3. Management: Joyful Working around 1,429,000 RMB every year. Attracting and Nurturing Talent (1) To emphasis on the daily inspection and to improve the leakage of SMT production lines. Communication and Care Prevention of Occupational Hazards (2) Energy saving improvement for compressor system. Public Welfare (3) Energy saving improvement for lighting. GRI Content Index (4) Different time interval control for machines operations. (5) To introduce the heat insulation curtains in the SMT production lines which exposed direct sunlight during summer season. 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles 4. Others: 3. Relocate heaters in order to close area and maintain warmer temperature inside plant where personnel A Word from the CEO (1) Energy saving knowledge announcement to employees. are working. (2) To hold several trainings for energy management to learn more 4. Monitor overnight forecast temperature to adjust the electric heaters and close water supply inside About Pegatron Group about energy saving. pump room to avoid equipment damage because water get frozen and that causes water leakage. Financial Performance Financial Snapshot (3) To understand the natural carbon reduction behaviors of plants. Investment Strategy Pegatron Czech Republic Plant (PCZ) : Award List Pegatron West China Operation Center (PCQ) Monitoring the electricity use by web server interface: Management Stakeholder Engagement and 1. Using new and high efficient oil injected screw air compressor with 1. Identification of the facilities with significant power consumption: identifying the facilities with identif ication of key Issues frequency conversion to prevent over frequent switching on in low higher electricity intensity to find the opportunity for saving. Risk Management Company Governance capacity. 2. Make program of ventilation and chilling functions in BMS (Building Maintenance System) software: Code of Conduct 2. To arrange the air compressor duct system in circle to endure the setup according to the forecast and actual weather situation. Communication balance of air supply. 3. Daily Checking: to measure the consumption of optimized Illumination in particular areas. Partnership Participation & Commitment 3. To choose the energy saving lighting and remove certain light bulbs Customer Relationship without influence on illuminations. Customer Satisfaction 4. To use the air handling unit with frequency conversion and adjust the Privacy and Information Security by the necessity of work areas. Sustainable Environment Low Carbon 5. Daily energy saving management: GHG Management to turn off the light when leaving, plug out when off and periodical audit. Sustainable Design Environmental Protection 6. To implement the energy saving trainings for employees. Joyful Working Attracting and Nurturing Talent Communication and Care Pegatron Mexico plant (PMX) Prevention of Occupational Hazards 1. To adjust the air conditioners according to demand and condition. Public Welfare 2. To reduce lighting reasonably in the warehouse. GRI Content Index 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Sustainable Design Hazardous Chemicals Management A Word from the CEO Pegatron Group has extensive experience in product design integrated with production. In addition to As a professional DMS electronic manufacturing company, Pegatron green supply chain reinforcement, we also provide customers with creative energy-saving, low-toxin Group designed innovation and high technology electronic products product design concept to facilitate the introduction of green products. We meet and implement About Pegatron Group towards sustainability by the concept of sustainable economic, society customers’ green and legal requirements and regulations at the stage of designing and choosing Financial Performance and ecology. We focused on the enhancement of product energy materials. And the listed materials that have serious environment impacts include: Pb, Cd, Hg, Cr6+, PBB Financial Snapshot efficiency to response the issues of global warming and natural and PBDE. The above materials are controlled and managed strictly. In response to the update of new Investment Strategy resources. In order to reduce the impacts on environment, we control regulations, we implemented RoHS 2.0 directive and the relevant requirements in 2013. Furthermore, Award List hazardous chemicals and use recyclable materials according to we’ve phased in halogen-free products aligning with customers since 2009, and also introduced low- international environmental protection requirements and customers’ Management halogen system, such as Br, Cl in our restricted list in 2012. We follow the current international requests. Besides, due to the highly concerns of human rights, we Stakeholder Engagement and environment protection laws and regulations (such as REACH.) to ensure pure green products to identif ication of key Issues continuously pay close attention to conflict minerals and introduce the demonstrate Pegatron Group’s corporate social responsibility. Risk Management concept into our supply chain. Company Governance Code of Conduct In order to meet these international environment regulations and customers’ requirements mentioned Communication above, Pegatron Group have created PureGMS HSF/low- halogen Technical Standard and PureGMS Partnership The focus of the research and development of electronic products is to Halogen-Free Technical Standard. And we would tailor customers’ environmental specifications upon Participation & Commitment save the energy. From the beginning of project, we have taken the requests. Parts and products provided by vendors are required to meet Pegatron Group standards or Customer Relationship energy related requirements by different nations in design phase. our customers’ requirements. In addition to the six hazardous chemical substances restricted by RoHS Customer Satisfaction Besides, in order to enhance the efficiency of power consumption, we directive and other controlled substances required by law, a further control of ozone depletion Privacy and Information Security not only met current requirements of energy use, but also predicted substances and radioactive materials which are more than 50 chemical substances is done. Also, we customers’ needs and set up the targets according to the requirement have defined hazardous substances restrictions on the use of batteries and packaging materials. And in Sustainable Environment of new version of Energy Star. 2009, the EU REACH has included dangerous substances of very high concern (SVHC) into the Low Carbon "PureGMS HSF technical standards." GHG Management Sustainable Design In order to make sure that the electronic products manufactured by Environmental Protection Pegatron can meet the requirements, in Oct, 2011, we built the energy Joyful Working consumption laboratories in headquarters according to “Supervised Attracting and Nurturing Talent manufacturers’ testing laboratory program” (SMTL), and certified by UL Communication and Care validated by US EPA. Prevention of Occupational Hazards Public Welfare GRI Content Index 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Products Recycling/ The Use of Recyclable Materials A Word from the CEO Many of Congo's mines are controlled by non-government militant In response to customers’ requirements, we are engaged in innovation research and development of groups and Illegal military factions that are causing serious issues in the green design, and introduce the concept of sustainable use into product design. Also, we are the About Pegatron Group region, such as armed conflict, the violation of human rights, pressing frequent winner of Germany iF design award. In 2011, we were rewarded 4 design awards, including Financial Performance on the child labors, environmental impacts and have influenced package design, communication design and material design awards. We focus on eco-friendly products Financial Snapshot surrounding countries. For this reason, U.S. Government signed the and were rewarded third year in a row with Germany iF Material Award in 2011, including bamboo Dodd-Frank Wall Street Reform and Consumer Protection Act (the Investment Strategy surface and poly lactic acid laptops in 2009, PLA & Recycled PC and Paper PP Alloy in 2011. “Dodd-Frank Act”) in July 2010,. Section 1502 of the Dodd-Frank Act Award List requires all US publicly traded companies to file disclosures and reports Management with the U.S. Securities and Exchange Commission (SEC) related to the Besides, to awake the motives for the reuse of package materials, we combined graphic design and Stakeholder Engagement and use of Conflict Minerals (tin, tantalum, tungsten and gold) in their innovation thinking to extend the lifetime and the value of packages by reusable disassembled cartons. identif ication of key Issues products, expected through this Act to request publicly traded This design is rewarded with Germany iF Product Design Award. Risk Management companies in United States to reduce violation of human rights Company Governance through disclosure of the origin of metals in order to avoid either using Code of Conduct and importing “conflict metals” from Congo or mineral sources from Communication Congo which illegally taxed on trade routes through surrounding Partnership countries. Participation & Commitment Customer Relationship Customer Satisfaction As a corporate citizen and one of EICC members, Pegatron Group respects International Human Rights. We will keep on concerning this Privacy and Information Security issue and will take due diligence within our supply chain to assure the Sustainable Environment metals sources of gold (Au), tantalum (Ta), tungsten (W), tin (Sn) are not Low Carbon derived from mining in conflict region of the Democratic Republic of GHG Management Congo (DRC). We will also invite our supply chain together to Sustainable Design investigate metal sources of products and do our best to avoid using Environmental Protection conflict minerals, and endeavor to fulfill responsibilities of a corporate Joyful Working citizen.Therefore, Pegatron is using the EICC_GeSI_DD Template to Attracting and Nurturing Talent survey our tier-suppliers started in 2012, and establish the Conflict Communication and Care Minerals Survey System to provide convenient uploading platform Prevention of Occupational Hazards for vendors and collect information efficiently for our colleagues. The survey completion rate was 80% in 2012, even 87% in 2013. In Public Welfare 2014, Pegatron will be more strict in Conflict Minerals Survey, and ask GRI Content Index suppliers to disclose the smelter’s information completely and honestly. 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Environmental Protection Unit: metric tons per million TWD in revenue A Word from the CEO Waste generation analysis in Pegatron Group during 2009 to 2013 Towards sustainable environment is a long term goal of Pegatron 0.14 0.12 1.5 % 20.5 % Group. For products, we merged green and environmental friendly 0.10 About Pegatron Group -17.1 % 0.08 Financial Performance concept into the product design. For daily operations, we complied -25.9 % with international and local regulations to diminish the impacts on 0.06 Financial Snapshot 0.04 Investment Strategy environment. This philosophy is disclosed in our PureCSR policy and 0.02 implemented in daily environmental management. Besides, we also 0.00 Award List took the natural ecology into considerations when building the 2009 2010 2011 2012 2013 Management landscape of each operation center and site. 【Remark: 2009 is the base year.】 Stakeholder Engagement and identif ication of key Issues Risk Management Company Governance Waste Code of Conduct Wastes issue is one of the major environmental aspects in Pegatron Communication Group. As a professional DMS manufacturing company, we followed the 27.90 % Partnership internal procedures to control the wastes produced by all stages. At present, we have compiled statistics of proportions to the waste Participation & Commitment treatment with recycling way in headquarters and main manufacturing Customer Relationship 69.06 % sites. Almost wastes are treated in recycling ways. However, for Recycling waste Customer Satisfaction domestic wastes, because we have screened almost recyclable wastes, Domestic waste Privacy and Information Security 3.04% the major treatment way of domestic wastes is landfill and burning. We Hazardous wasts Sustainable Environment will force ourselves to enhance the proportions of recycling treatment Low Carbon and to set up it as one of the corporate targets in the future. GHG Management Sustainable Design To make sure all recyclable hazardous industrial wastes are disposed legally and effectively, each Environmental Protection The principle of waste management in Pegatron Group is to reduce operation center/factory has followed the internal procedures to make an overall plan of waste tender importation of raw materials as much as possible. In addition to source Joyful Working process.We verified each waste disposal vendor’s qualification in accordance with an open, fair and just reduction, we have paid attention to recycling package materials to principle. Through the above process, we could select the less risky company to prevent any Attracting and Nurturing Talent improve the re-utilization rate. Furthermore, in each operation environmental impact from improper disposal of wastes. All hazardous industrial wastes have been Communication and Care center/factory, we have set the waste management unit to make an disposed legally. Prevention of Occupational Hazards overall plan for regular operation and waste statistics and help other Public Welfare units to implement waste reduction and recycling. GRI Content Index 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Water Resource Water resource management and water pollution prevention should start with water saving. All operation centers and sites of Pegatron Group have formulated and implemented several control A Word from the CEO Although the water resource is not significant environmental aspects procedures for water saving and tried to find the possibility of water recycle in every kind of water using for Pegatron Group, water shortage caused by climate change and the facilities. About Pegatron Group large variation of rainfall distribution become an international issue Financial Performance nowadays. The principle of water resource management adopts two Financial Snapshot measures: 1)to reduce the use of water and to treat the waste water Water Resource Saving Procedures well internally; 2)for external, to promote the water saving concept into Investment Strategy Headquarters Pegatron (HQ): the supply chain. Award List 1. Leakage investigation of water pool in headquarters. Management 2. Replacement of the components of closestools in toilets. Stakeholder Engagement and Pegatron Group engages in enhancement of the efficiency of water identif ication of key Issues 3. Adjustment of the float ball of the cooling tower. Risk Management resource use and reduction of the environmental impacts caused by Company Governance industrial development to meet the international environmental protection trends. We initiate green value and implement corporate Code of Conduct Manufacturing Center (TY): social responsibility by green actions for sustainable cycle and the Communication concept of coexistence for economic growth and environmental 1. Continuous announcement of energy saving. Partnership protection. Participation & Commitment 2. Labeling in water use devices for water saving concept and the notice channel of repair. Customer Relationship 3. Daily check the quantity of water use to improve the abnormal promptly. Customer Satisfaction For reduction from the source, we focus on the improvement of Privacy and Information Security facilities and the announcement of water resource treasuring in each operation center and site. Sustainable Environment Pegatron East China Operation Center (PSH): Low Carbon GHG Management 1. The drinking water system in PSH has 4 layers of RO membrane with 15% permeable rate. Sustainable Design Unit: cubic meters per million TWD in revenue They can save tap-water of 16,000 tons and the cost of 59.360 RMB per year. Environmental Protection Water use analysis in Pegatron Group during 2009 to 2013: 2. The cost of wastewater treatment and examination is reduced around 24,000 RMB every year.
Joyful Working 9.00 3. The reduction of greenhouse gas emissions of tap-water is around 1.85 tons per year. Attracting and Nurturing Talent 7.91 % 8.00 6.51 % Communication and Care 4. The reduction of greenhouse gas emissions of wastewater treatment is around 21.35 tons per year. 7.00 Prevention of Occupational Hazards 5. The reduction of recycled reclaimed water is around 83,360 RMB and 23 tons of CO2 emissions per year. Public Welfare 6.00 -27.83 % -26.42 % This engineering project not only save the water resources but also CO2 emissions, and aggressively protect our ambient atmosphere and environment. GRI Content Index 5.00 2009 2010 2011 2012 2013 【Remark: 2009 is the base year.】 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Pegatron Central China Operation Center (PSZ) : Pegatron Mexico plant (PMX) : A Word from the CEO 1. To publish the posts to announce the importance of water saving. The water is part of resource utilization control program in 2013. Water recy cy is regarded as 2. To introduce the condensed water recycling system for chillers: our target. Also, we periodically review the performance and to be towards continuous improvement. About Pegatron Group (1) cy of water curtain pump. The target is to maintain the consumptions under the average of 2013. Financial Performance Financial Snapshot (2) Reduction of the cost of piped water. The reduction can Investment Strategy reach around RMB 1,431, which is equal to TWD 6,900. Pegatron Czech Republic Plant (PCZ) : Award List 1. Optimization of water consumption in chillers. 3. Add water saving devices in faucets. Management 2. Setup process of irrigation. Stakeholder Engagement and To install water saving devices in faucets tering and identif ication of key Issues 3. Restriction of maximal wat ow in all wash basins. saving functions. The saving rate of each faucet is up to 38%. Risk Management Company Governance 4. To add a valve in each faucet to adjust the yield of water to reduce The wastewater of Pegatron Group in each operation center and site is domestic Code of Conduct the amount of water use. Communication wastewater. Unit: cubic meters per million TWD in revenue Partnership 5. To install the water-free urinal bowls. Wastewater generation analysis in pegatron Group during 2009 to 2013 Participation & Commitment 14.24% Customer Relationship 7.00 13.91% Pegatron West China Operation Center (PCQ) : 6.00 Customer Satisfaction 1. Using water saving devices and pipe system. 5.00 -20.26 % -20.24 % Privacy and Information Security 4.00 2. Using induction faucets and induc evices for urinal bowls. 3.00 Sustainable Environment 2.00 Low Carbon 3. Water run- rning devices for water pools and water tanks to prevent 1.00 2009 2010 2011 2012 2013 GHG Management irregular water drainage for a long time. Sustainable Design 【Remark: 2009 is the base year.】 Environmental Protection 4. Individual water meters for each water use device.
Joyful Working 5. Choosing water and energy saving devices for showers. P egatron E as t C h in a Operation C en ter (P S H): Attracting and Nurturing Talent 6. Posting water saving slogans. Communication and Care We have wastewater analysis laboratory to monitor the water quality of wastewater. The instruments for Prevention of Occupational Hazards 7. Water saving trainings for employees. checking water quality are calibrated periodically to make sure the accuracy of monitoring data. We Public Welfare improved the wastewater treatment system to ensure the water quality: GRI Content Index 1. To improve the old facilities to enhance the treatment effect. 2. Adding some facilities to reduce the loading of treatment system for responding the increasing of staff. 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Landscaping Manufacturing Center (TY): A Word from the CEO Whether operation offices, R&D or manufacture-oriented operation Manufacturing Center has a plan every year for landscaping improvement, including trimming, centers/plants, we designed the landscapes according to the local strengthening and manuring of plants. We have planted hundreds of Star Cluster and Golden Dewdrop, About Pegatron Group environmental assessment and our PureCSR commitment, and and around 220 of Sikayotaizan Rhododendron, Scandent Scheffera Taiwan Cherry, Common Jasmine Financial Performance expected to avoid any significant impacts on local ecosystem and to Orange and Orc Hid Tree. Although the total area of Manufacturing Center is relatively small, we tried to Financial Snapshot preserve the natural sources. enlarge the green area up to 1,800 ㎡. Investment Strategy Award List Management Stakeholder Engagement and identif ication of key Issues Risk Management Company Governance Code of Conduct Communication Partnership Participation & Commitment Customer Relationship Customer Satisfaction Privacy and Information Security Headquarters Pegatron (HQ):
Sustainable Environment As the concerns for the conservation of biodiversity in Headquarters, Low Carbon we introduced biodiversity concept and also considered animal GHG Management migrations. In addition to keeping native tree species, we shortened the Sustainable Design construction period as far as possible to lower the influences on Environmental Protection surroundings. Also, we replanted the native trees after the completion Pegatron East China Operation Center (PSH): Joyful Working of construction and took native species and regional characteristics into considerations when performing newly planting. So far, the green area Attracting and Nurturing Talent The major landscaping of PSH is the variation of natural plants. We take vertical structure scenery and of headquarters is about 3,000 ㎡, covering 25% of total area. climate difference into considerations, and follow the principle of native-born species and adaptability Communication and Care to build up the complex gradational atmosphere of solar terms. At present, the green area is about Prevention of Occupational Hazards 126,434 ㎡, and the number of vegetation is up to 141. Public Welfare GRI Content Index 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Pegatron West China Operation Center (PCQ) : A Word from the CEO Landscaping can improve the life quality and can beautify the scenery of our environment. In PCQ, we adopt the integration of point, line and surface to design our landscaping. The total green area we About Pegatron Group designed is up to 186,676 ㎡, covering 27.51% of total area. At present, , we have completed the green Financial Performance areas to 16,000 ㎡, covering 20% of total area to build a comfortable working environment. Financial Snapshot Investment Strategy Award List Management Stakeholder Engagement and identif ication of key Issues Risk Management Pegatron Central China Operation Center (PSZ) : Company Governance Code of Conduct The green area in PSZ is about 190,000 m2, covering 25% of total area. Communication We introduce resource saving and environment-friendly concept in Partnership outdoor landscape design. We choose drought resistant and against Participation & Commitment diseases and pests species, including Camphortree, Deodar Cedar, Customer Relationship sweet olive, Zelkova serrata, Glossy Privet, Photinia serrulata, China Loropetaland Manila Grass lawn, to save the water use and reduce the Customer Satisfaction pesticide application impact on environment. In addition, we transplant Privacy and Information Security trees from our own garden to reduce the cost and avoid the destruc- Sustainable Environment tion in other area due to transplantation of big trees. We keep maintain- Low Carbon ing landscaping to make the reasonable green sight, and we also have GHG Management an ecological artificial lake and a modern football field to improve the Sustainable Design scenery variety in our industrial park. For the indoor green decoration, Environmental Protection we arrange around 55 indoor plants and 5,000 plant pots in facilities Pegatron Mexico plant (PMX) : and offices to improve the surroundings and indoor air quality. The Joyful Working survival rate of indoor plant pots is up to 90% due to the caring experi- The green area of PMX is about 6,127 ㎡, covering 30% of total area. Attracting and Nurturing Talent ences for many years. The species of indoor plants are including Devil's Communication and Care ivy, Pothos, Malabar chestnut, Lucky Bamboo, Rohdea japonica, Tufte- Pegatron Czech Republic Plant (PCZ) : Prevention of Occupational Hazards Bracketplant and Englishivy. Public Welfare The green area of PCZ is about 14,173 ㎡, which is 20% of total area. Administration division has regular yearly plan for landscaping improvement, including trimming, strengthening and manuring of plants. GRI Content Index 2013 sustainability report sustainable environment Sustainable Environment
Editorial Principles Environmental Education Headquarters Pegatron (HQ) & Manufacturing Center (TY): A Word from the CEO In order to comply with legal and customer’s requirements, and to fulfill A public welfare club in Headquarters and Manufacturing Center of Pegatron Group, irregularly holds the promise of summoning up all employees, we conducted several lecture courses and activities about ecological preservation, humanistic care and environmental About Pegatron Group trainings and announced to the staff to enhance their conscious of protection. This way, our colleagues have the opportunity to understand the society and environment, Financial Performance environmental protection as regulation updating. and then serve the community. We expect that these public actions can raise the environmental Financial Snapshot conscious of employees. Investment Strategy Award List We not only provide staff with environmental trainings, but also encour- age all staff to join relevant communities and take part in environmental Management activities. Besides, all operation centers and sites held several activities Pegatron East China Operation Center (PSH): Stakeholder Engagement and identif ication of key Issues during environmental protection commemoration days, including Tree planting days, Earth Day and World Environment Day. Risk Management PSH has issued 4 editions of the
Editorial Principles Pegatron West China Operation Center (PCQ) : A Word from the CEO In order to enhance the conscious of environmental protection through firsthand experience, the employees in PCQ participated in a series About Pegatron Group activities, including “environmental and health & safety banners exhibi- Financial Performance tion - call for papers”, “drawing competition of reusable shopping bags” Financial Snapshot and “PureCSR abnormal improvement proposal”. Besides, we held Investment Strategy environmental protection and safety related trainings for our employ- Award List ees to enrich their knowledge in environmental protection and safety. Management Stakeholder Engagement and Pegatron Mexico plant (PMX) : identif ication of key Issues Risk Management In order to improve the sense of environmental protection, PMX has Company Governance conducted two activities, including: Code of Conduct Communication 1. Emission assessment for heathers. Partnership 2. Vehicle emissions inspection activity. Participation & Commitment Customer Relationship Customer Satisfaction Privacy and Information Security Pegatron Czech Republic Plant (PCZ) :
Sustainable Environment To comply with legal and customer’s requirements we provide each Low Carbon new worker incoming training that includes environmental information;- GHG Management furthermore some of them obtain special environmental training in Sustainable Design accordance with their specialization. Besides, environmental awareness Environmental Protection of our employees is encouraged by means of various methods includ Joyful Working ing visual information into the area, briefings, electronic and other Attracting and Nurturing Talent information how to fulfill the promise to protect the environment. Communication and Care Prevention of Occupational Hazards Public Welfare GRI Content Index Joyful Working
happy
To develop the philosophy of “Priest” and “Parents”, and to respect employee the characteristics of each employee. 2013 sustainability report sustainable environment Joyful Working
Editorial Principles Pegatron’s management philosophy is based on "Joyful Working; Happy Living". We encourage our employees to confront the work duties with A Word from the CEO positive attitude, and inspire their potentials through various We value our employees and provide safe and comfortable working environment, plenty of training challenges to act beyond excellent by constantly upgrading courses and diverse career development. The competitiveness shows from our employees’ structure, About Pegatron Group themselves. Meanwhile, with team work, all employees can enjoy their moral and energy. Financial Performance work so as to achieve “Happy Life” as our ultimate goal. Financial Snapshot Investment Strategy In the end of 2013, there were 117,456 full-time employees in Pegatron Group, of which 79,265a re Award List male and 38,191 are female. There were 21.5% female in the managerial positions. When recruiting new Attracting and Nurturing Talent comers, our only consideration is employees’ skills and abilities. We always are fai r to all employees Management Stakeholder Engagement and identif ication of key Issues Employees are our valuable assets, the cooperation between Risk Management employees and the company will be the solid basis for future assessment and rewards for both applicants and employees. Company Governance development. We believe “where there are excellent talents, there will Code of Conduct be an excellent company”. Therefore, we respect the development of humanity and create a diverse company culture, as well as high Communication As a global company, we not only attach importance to the global markets, but also care for local performance and happy life atmosphere by providing comprehensive developments. All our global employees with good competence have the same promotion Partnership opportunities. Therefore, there are around 62.8% local managers In addition, we provide vacancies Participation & Commitment to the minority. Customer Relationship Customer Satisfaction Pegatron Group provides a competitive package of compensation and Privacy and Information Security Sustainable Environment system and individual development plan, we assist employees to enhance their professional competencies. Employees’ development Low Carbon becomes a driving force behind the company’s growth. As for life care, GHG Management we provide a variety of work & life balance programs to look after Sustainable Design employees’ health both physically and mentally. In which, our Environmental Protection employees may have vital life. Joyful Working Attracting and Nurturing Talent Communication and Care Prevention of Occupational Hazards Public Welfare GRI Content Index 2013 sustainability report sustainable environment Joyful Working
Editorial Principles Benef it according to the corporate and personal targets, and to implement the plan to become mature in their occupational filed. Through IDP, supervisors can support corresponding resources and assistances in A Word from the CEO “Joyful Working; Happy Living” is Pegatron Group’s caring philosophy to profession or work skills according to the employees’ needs. Besides, employees can develop themselves employees. Pegatron Group endeavors to show the concerns and the with their own target by multidimensional learning activities. About Pegatron Group cares to the employees. Bonuses are given for the 3 major holidays in Financial Performance Taiwan. The Year-End party, community activities, family days, Arts and Various and Plentiful Resources of Learning and Development Financial Snapshot culture activities and teamsports are also being held for our employees, Investment Strategy hoping our employees can also focus more on family during spare Pegatron Group emphasize the trainings and development of employees. Every employee can access time. Award List competition trainings, management courses, professional trainings, new supervisor trainings, internal Management teacher trainings, several lecture courses and external trainings. We have provided over 700 courses in Stakeholder Engagement and 2013. Besides, we offered around 200 online courses in our e-learning system for our employees identif ication of key Issues via coupon, and provide allowance (activities like marriage, funeral, without the limit of time and location. Risk Management associate groups and scholarship) and provide the most attentive Company Governance In addition, there are almost 1,000 books in our “Pega e book store” for employees to read. In addition to Code of Conduct local regulations. course resources, we have set many procedures to provide multiple learning and practices Communication opportunities, and to improve their abilities, including mentors for every mew employee, job rotation, Partnership Training and Career Development project assignment. Participation & Commitment 【 】 Customer Relationship Emphasis on Nurturing Talent : Seven Beautiful Stories about Treasuring Taiwan
Customer Satisfaction The management philosophy of Pegatron Group is “Happy Working, Stories Author Introduction Privacy and Information Security Joyful Living”. We expect all employees to work passionately and A Page of Legend about Sustainable Environment the Coast Mountains Sharing the Touching Legend of Education and Religion. Low Carbon challenges. Because the “talent” is one of the determinant factors in Ramble in Tainan and 王浩一 Recording Various Kinds of Cultural History and Life Background GHG Management corporate competition, we emphasized talent nurturing to encourage Talking about Traveling Alone to Explore Tainan in Different Ways Sustainable Design our employees to achieve more excellent performance. We Incomplete Journey – Traveling continuously invest resources in nurturing talent and education Traveling in a Poorest Status to Experience the Living of the Environmental Protection on the River: the end and the Lowest Necessary, and then to be afraid nothing trainings for employees to enhance their core and professional abilities. Beginning of Ganges River Joyful Working We built up an environment for all employees to develop their Involved in the Education in East Region and Inspire Young Attracting and Nurturing Talent Cultivate a Hope to a Land specialties and skills, and to help themselves to earn the job satisfaction People Actively Make Progress Communication and Care during their work. We hope all employees can balance their life and Prevention of Occupational Hazards Different Values: Sharing the Values of the Tribe, and to Translate the Message work, and to live towards happiness. We Grow in This Way from Nature Public Welfare Promotion of IDP : Thousands Miles of Walking To Introspect the Ways to Approach the Nature by Human Beings- GRI Content Index Trail – The Journey to Find Initiation of the Activities of “Saving Old Trails by Cleaning the Mosses”, In order to meet the strategy of talent nurturing and to build up a learn- the Fantastic Path and “Stopping Building the Cable Cars to Treasure the Mountains” ing environment, Pegatron Group introduced “Individual Development To Believe in Nature and to Desire the Exploration of the True A Dream of an Extreme World. Listen the message from the Nature Plan (IDP)” to help all employees to set their self-development plans Sportsman 2013 sustainability report sustainable environment Joyful Working
Editorial Principles Employee Retention and Recruitment Communication and Care A Word from the CEO Pegatron Group works on employee retention by providing career In order to make all employees receive most adequate concerns and cares, Pegatron Group development opportunities, work-life balance and enhancing leaders’
About Pegatron Group management abilities. Our action is as our business concept “Happy Working, Joyful Living”. Financial Performance communication channels, we emphasize the health care and occupational safety for employees. To Financial Snapshot meet local legal regulations is the lowest requirements for us, and we built suitable health promotion Investment Strategy We value the contributions of our diverse employees to attract global Award List several management procedures and operation controls to eliminate the work-related incidents. We talent to join us via cooperation with academic and summer internship Management programs. We also welcome the disabled persons to apply. Besides, our strengthen the safety and health in work environment. Stakeholder Engagement and recruiters and managers are well trained to assure the fairness of identif ication of key Issues recruiting processes and select the most appropriate persons for the Risk Management appropriate positions. Company Governance Code of Conduct Communication Communication Pegatron Group provides professional examination tools and a serials Pegatron Group has set up multiple communication channel including the all-in-one i-PEGA BOX, Partnership interview technique training courses for supervisors to make sure the employee hotline, departmental service hotlines, and EAP (Employee Assistant Programs). There are Participation & Commitment fairness and the quality of human resources when recruiting. In also counseling hotline, health hotline, and grievance mechanism in place in our global plants to Customer Relationship addition to professional essence, personal occupational function, value effectively solve employees’ problems. Employees can choose different channels depending on their needs. Customer Satisfaction and company culture are also important. We expect that our Privacy and Information Security arrangement of human resources is adequate, and all employees can develop themselves and practice their talent in the right place. In order to let our employees understand the company’s operating status and directions, our CEO, Sustainable Environment Jason Cheng, has published articles named “Jason’s Talk” and held the quarterly, face-to-face CEO Low Carbon Coffee Talk meetings. This will help our employees to have in-depth understandings of the compa- GHG Management The principle for employee retention of Pegatron Group is to cherish, ny’s decision making processes. Sustainable Design cultivate and value our employees. We provide complete training Environmental Protection programs and job rotation plans according to employees’ IDP analysis results combined with their wish and performance. In addition, we have Joyful Working representatives are responsible for expressing opinions of all employees to communicate with the Attracting and Nurturing Talent company. abilities and help them to perform well. Communication and Care Prevention of Occupational Hazards Public Welfare GRI Content Index 2013 sustainability report sustainable environment Joyful Working
Editorial Principles Health Promotion Site Health Promotion Activities A Word from the CEO Nutrition Labels in Cafeteria Lecture Course Health and Parenting Because every employee is the most important property in our compa- Sampling Inspection of Raw Materials in Cafeteria Vaccine Injectio n Activity of Flu and Hepatitis B ny, we pay more and more attentions to the health care. We appropri- Lecture Course for Tobacco Prevention Psychological Counseling Services HQ & TY About Pegatron Group ate a certain sum of turnover as health care funds to maintain and Periodical Employee Health Check up First Aid Training Women Cancer Prevention Activities Health Dishes APP Download Promotion Activity Financial Performance promote employees’ work and life quality by a multiple integration project for work and life balance, including health management, health Take off over weight and be thiner and more energetic Weight Management Activity in Healthy Work Place Financial Snapshot promotion, occupational health, and employee assistance programs. Lower Blood Pressure, more Healthy Life Health Promotion Activity for Women Cancers and Cancer Screening Investment Strategy Relax Massage Activity Work pressure examination Testing Activity Award List Oral Examination and CO Testing (Tobacco Prevention) Stair Climbing Participation to Earn Fruit and to be more Beautiful and Healthy.
Management About employees’ health management, each operation center/factory Occupational Health Checkup Promotion of Healthy Life and Disease Avoidance Stakeholder Engagement and has set up site infirmary to provide outpatient services by professional Health Checkup for the Employees Under Age Lecture Course for Mental Health identif ication of key Issues physicians. Also, several medical checks are conducted as regulated. PSZ Advanced Health Checkup for Supervisors Smoking Cessation Activity Risk Management The results of the medical check up are classified into different levels for Specialist Lecture Course for Health Promotion AIDS Prevention Activity Company Governance follow-up actions, which are regulated by the local authorities. We First- aid Training
Code of Conduct promote many health related activities, including weight management, Classroom Activities for Pregnant Women Health Checkup for the Employees Under Age Communication stair climbing activity, ergonomic program, relax massage, vaccine First- aid Training Occupational Health Check up injection and health lecture courses. PSH “Prevention of AIDS and to be against Blood Donations discrimination” - Shanghai Red-Cross Partnership Health Promotion Lecture Course for Adolescence World AIDS Day Participation & Commitment Measles Vaccine Inoculation GynecologicHealth Check up for Married but not Preganent Women Customer Relationship About the mental health, we have implemented many projects in each Regular Occupational Health Checkup for Employees Heat Stress Prevention Activity Customer Satisfaction operation center and site to provide a spiritual development and relax Special Health Checkup for the Employees under Age Health Prevention Monthly Journal Privacy and Information Security channel for employees. Also, we set up special psychological consulta- Periodical Inspections for Drinking Water. Lecture Course for Tuberculosis (TB) tion room to assist employees to face and solve all kinds of difficulties. Sustainable Environment PCQ Periodical Inspections for Meal Samples. Lecture Course for Air-condition Disease and Urticaria Training for First-aid Personnel. Mental Health Consultation Service. Low Carbon Regular Preventive Health Checkup for All Employees First- aid Training GHG Management Vaccine Inoculation Against Flu. Smoking Cessation Activity Sustainable Design PCZ Providing Packages of Vitamins Nutritionally Adequate Food Recommendation Environmental Protection Blood Donations Preventive Programs Aimed at Inappropriate lifestyle Change Joyful Working Special Health Checkup for the Employees under Age Diagnostic of Health and chronic disease of employees Medical checkup for new employees Attracting and Nurturing Talent Influenza Vaccination Cafeteria inspections Communication and Care Visual program Disabilities control issued by IMSS (Instituto Mexicano del Seguro Social; Mexican Social Security Institute) Prevention of Occupational Hazards Training in first aid health and safety committee Control of the biological infectious waste PMX Public Welfare Promote health care: walks and activite, HV basic information, asthma, alcoholism, Stress, Influenza, winter camping. GRI Content Index Medical care consultation (continues all year) Laboratory test for employees exposed to chemicals and special operations 2013 sustainability report sustainable environment Joyful Working
Editorial Principles Prevention of Occupational Hazards Headquarters in Taipei is regarded as the information center to global E&SH organization and integrat- A Word from the CEO ed information and reports worldwide. Each operation center/factory has formulate yearly E&SH objec- The causes of occupational hazards could be attributed to the lack of tives & targets and various types of management procedures. Besides, we has regularly convened evaluation and control to unsafe situation and unsafe behaviors. To “PureCSR; Environmental, Health and Safety Steering Committee/ Review Meeting” and met with About Pegatron Group prevent occupational hazards and protect employees’ safety & health, employee representatives to communicate and consult the performance of internal PureCSR and E&SH Financial Performance we have set dedicated units to conduct the overall planning and performance. Each operation center/factory not only conformed to the local requirements, but worked Financial Snapshot operate environmental and safety & health matters. We conformed to out in conformity with international trends, customers’ requirements and PureCSR policy towards Investment Strategy continuous improvement. Award List potential risks to make all employees comply with occupational safety Management & health standard operating procedures. Also, we implemented safety & Stakeholder Engagement and health education and training to practice self-checks for operations and identif ication of key Issues maintenance for facilities. Response and Preparednessement Risk Management Company Governance Sustainable development is the main target of business operations in Pegatron Group. In response to Code of Conduct the impacts on our company by climate change, we set corresponding emergency response Communication Occupational Safety and Health Management procedures in each main operation center and manufacturing site. We eliminate the potential damages and impacts through setting the response mechanism, planning and periodical trainings and drills. Partnership Pegatron Group concerned about the risk assessment and manage- Participation & Commitment ment of overall operation. We periodically performed CSR related risk Customer Relationship identification, evaluation, control and review. Also, about the standards Customer Satisfaction of procurement management and management of change (MOC), we earthquake, chemical leakage, liquid or gaseous substances leakage and emerging infectious diseases. Privacy and Information Security have defined in the PureCSR management procedures. Besides, each We improve the ability of response team and enhance the conscious of all employees through Sustainable Environment operation center/factory has been in accordance with local authority’s periodical training and education. Besides, to the emerging infectious diseases, we established the Low Carbon requirements to perform work environmental monitoring and occupa- prevention and control group to monitor the epidemic condition and to integrate the goods and GHG Management tional exposure assessment to ensure all employees could work in a materials for the prevention of disease spreading, and to adjust the control procedures according to the levels of epidemic conditions. Sustainable Design safe and healthy way. Regarding the risk communication, in addition to Environmental Protection “PureCSR; Environmental, Health and Safety Steering Committee/ Review Meeting” and the “employee suggestion box”, we have signifi- Joyful Working cantly conveyed risk identification, risk management and risk percep- Attracting and Nurturing Talent tion through educational training and regular promotion. Communication and Care Prevention of Occupational Hazards Public Welfare GRI Content Index Public Welfare
Contribute within 0.5% of net income every year toward charity. public welfare Work with local communities to develop appropriate public service activities 2013 sustainability report sustainable environment Public Welfare
Editorial Principles Communication and Care 4. We sponsor the dinner for impoverished students in the adjacent schools. The meals are prepared by A Word from the CEO our food suppliers in cafeteria and supervised by a professional dietician to ensure the nutrition, balance and hygiene of meals. Pegatron Group is always supporting and participating in various CSR About Pegatron Group activities to reach our PureCSR policy from the beginning. We fully implemented CSR and E&SH responsibility from the inside out to Financial Performance Manufacturing Center (TY): Financial Snapshot Investment Strategy encouraged all employees around the world to devote to. In the planning of activities, community participations and empathy actions, Award List we start internally and promote to neighboring communities, then Management extend to where is most needed. Stakeholder Engagement and identif ication of key Issues Risk Management Company Governance Headquarters Pegatron (HQ): Code of Conduct Communication Partnership 1. Material donations: we collected refrigerators, vacuum cleaners, desks and filing cabinets and donated to Family Homeless Organization in New Taipei City. Besides, we also collected several daily necessities, Participation & Commitment including projectors, teapot, coffee machine, stereo, file cabinets, thermos, duvets, blankets and shoes, Customer Relationship and used clothes of 570 kg to local charitable foundation. Customer Satisfaction Privacy and Information Security 2. Blood donation activities. Sustainable Environment 3. We hold 422 World Earth Day Activity, including donations of waste electronic products and waste pills. Low Carbon GHG Management 1. We hired the people who with intellectual disability to work in the Sustainable Design bakery shop over a long period of time. Environmental Protection Joyful Working 2. We set up a sunshine car wash center by cooperating with Sunshine Attracting and Nurturing Talent Foundation to improve their self-reliance ability and provide them a Communication and Care place for service to others. Prevention of Occupational Hazards 3. We invited the children from Chia-Yi Christian Hospital and Eden Public Welfare Foundation and their parents to join our anniversary family day and GRI Content Index feel the enthusiasm atmosphere. 2013 sustainability report sustainable environment Public Welfare
Editorial Principles Pegatron Central China Operation Center (PSZ): Pegatron Czech Republic plant (PCZ): A Word from the CEO
About Pegatron Group Financial Performance Financial Snapshot Investment Strategy Award List Management Stakeholder Engagement and identif ication of key Issues Risk Management 1. We sponsored local children’s home, including a charity bazaar of Christmas presents and donation. Company Governance Code of Conduct 2. Project of long distance adoption: We have adopted a 7 years old boy with long term concerns and Communication supports. Partnership 1. We initiated blood donations during 2013. There are over 236 3. Project of student’s practical education: We cooperate with Technical University in our region. Participation & Commitment participants in these 2 activities. Customer Relationship 2. We invited local community with our employees to participate in Customer Satisfaction friendship activities and held donation in 2013. Privacy and Information Security Sustainable Environment Pegatron East China Operation Center (PSH): Low Carbon GHG Management 1. To organize the employees donation activity to help the people who Sustainable Design suffer from Sichuan Ya'an earthquake. Environmental Protection 2. Blood donation activities. Joyful Working 3. World AIDS Day Promotions Attracting and Nurturing Talent Communication and Care 3. To sponser the educational spends of nearby kindergarten, Prevention of Occupational Hazards primary and secondary schools, i.e. scholarships. Pegatron Mexico plant (PMX): Public Welfare Pegatron West China Operation Center (PCQ) : Pegatron México is a socially responsible company for supporting the noble causes, like the story about a GRI Content Index family that lives with multiple deficiencies. 1. We appealed our employees to visit the elderly and perform singing, dancing and playing allegro for them in the Moon Festival in 2013. GRI Content Indexv brighter future 2013 sustainability report sustainable environment GRI Content Indexv
Editorial Principles GRI Content Index A Word from the CEO
GRI Indicator Page Statement About Pegatron Group Profile Financial Performance 1.1 Statement from the most senior decision maker of the organization about the relevance of sustainability to the organization and its strategy. 3, 4 Financial Snapshot Strategy and Analysis 1.2 Description of key impacts, risks, and opportunities. 3, 4 Investment Strategy 2.1 Name of the organization. 1 Award List 2.2 Primary brands, products, and/or services. 7 Management 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. 9, 10, 11, 12 Stakeholder Engagement and 2.4 Location of organization’s headquarters. 10 identif ication of key Issues 2.5 11, 12 Organizational Prof ile Risk Management issues covered in the report.
Company Governance 2.6 Nature of ownership and legal form. 25 Code of Conduct 2.7 Markets served. 7, 9 Communication 2.8 Scale of organization 8, 66 Partnership 2.9 23 2.1 Awards received in the reporting period. 13 Participation & Commitment 3.1 Reporting period for information provided. 1 Customer Relationship 3.2 Date of most recent previous report. 1 Customer Satisfaction 3.3 Reporting cycle. 1 Privacy and Information Security 3.4 Contact point for questions regarding the report or its contents. 1 Sustainable Environment 3.5 19 Low Carbon 3.6 Boundary of the report. 1 GHG Management Report Parameters 3.7 1 Sustainable Design 3.8 1 period and/or between organizations. Environmental Protection 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators 39, 40, 50, 51, 54 Joyful Working and other information in the report. Attracting and Nurturing Talent 3.10 39 Communication and Care 3.11 39 Prevention of Occupational Hazards 3.12 Table identifying the location of the Standard Disclosures in the report. 85
Public Welfare 3.13 Policy and current practice with regard to seeking external assurance for the report. - 2013 GRI Content Index 2013 sustainability report sustainable environment GRI Content Indexv
Editorial Principles GRI Indicator Page Statement A Word from the CEO 4.1 Governance structure of the organization. 24 4.2 25 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. 25 About Pegatron Group 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. 26 Financial Performance 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives, and the organization’s performance. - We do not have this procedure at present. Financial Snapshot Investment Strategy 4.6 23 environmental, and social topics. Award List 4.7 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the 23 status of their implementation. Management Governance, 4.8 25, 26 Stakeholder Engagement and Commitments, identif ication of key Issues 4.9 including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 25, 26 and Engagement Risk Management 4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance. 25, 26 Company Governance 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. 21 Code of Conduct 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. 29 Communication 4.13 Memberships in associations and/or national/international advocacy organizations in which the organization: 29 4.14 List of stakeholder groups engaged by the organization. 19, 20 Partnership 4.15 19, 20 Participation & Commitment 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. 19, 20 Customer Relationship 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, 19, 20 Customer Satisfaction including through its reporting. Privacy and Information Security Sustainable Environment Low Carbon GHG Management Sustainable Design Environmental Protection Joyful Working Attracting and Nurturing Talent Communication and Care Prevention of Occupational Hazards Public Welfare GRI Content Indexv 2013 sustainability report sustainable environment GRI Content Indexv
Editorial Principles GRI Indicator Page Statement A Word from the CEO Economic Management Approach 29 EC1 Economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, 8 Economic and payments to capital providers and governments. About Pegatron Group performance EC2 Financial implications and other risks and opportunities for the organization due to the climate change. 38 Financial Performance EC3 - Complying with local laws and regulations. Financial Snapshot EC4 - Not applicable. Investment Strategy EC5 66 Award List Market presence EC6 29 Management EC7 66 Indirect economic impacts EC8 75 Stakeholder Engagement and identif ication of key Issues Environment Management Approach 37 EN1 Materials used by weight or volume. 45 Risk Management Materials Company Governance EN2 Percentage of materials used that are recycled input materials. 48 Code of Conduct EN3 Direct energy consumption by primary energy source. 39 Indirect energy consumption by primary source. Communication EN4 39 Energy EN5 39 Partnership EN6 39 Participation & Commitment EN7 Initiatives to reduce indirect energy consumption and reductions achieved. 39 Customer Relationship EN8 Total water withdrawal by source. 51 Customer Satisfaction Water EN9 N/A Privacy and Information Security EN10 Percentage and total volume of water recycled and reused. 51 EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. 55 Sustainable Environment Biodiversity EN12 55 Low Carbon EN16 Total direct and indirect greenhouse gas emissions by weight. 39 GHG Management Emissions, EN17 Other relevant indirect greenhouse gas emissions by weight. 39 Sustainable Design EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. 39 Environmental Protection and waste EN19 Emissions of ozone-depleting substances by weight. - We do not use ozone-depleting substances in the manufacturing and R&D process. Joyful Working EN20 - Attracting and Nurturing Talent EN21 Total water discharge by quality and destination. 51 Communication and Care EN22 Total weight of waste by type and disposal method. 54 Prevention of Occupational Hazards EN23 - Did not occur in 2013. EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. 37 Public Welfare Product and Services EN27 Percentage of products sold and their packaging materials that are reclaimed by category. 45 GRI Content Indexv Compliance EN28 - Did not occur in 2013. 2013 sustainability report sustainable environment GRI Content Indexv
Editorial Principles GRI Indicator Page Statement A Word from the CEO Labor Management Approach 65 LA1 Total workforce by employment type, employment contract, and region. 66 Employment LA2 Total number and rate of employee turnover by age group, gender, and region. - This item is not disclosed in the report. About Pegatron Group LA3 67, 68 Financial Performance Labor / management LA4 Percentage of employees covered by collective bargaining agreements. 70 relations Financial Snapshot LA5 85 Regulated in Employee manual. Investment Strategy Occupational Health LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. - The number of work-related death is 0 in Taiwan during 2013. and Safety Award List LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. 71, 73, 74 Management LA10 Average hours of training per year per employee by employee category. 67, 68 Training and Education Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. 67, 68 Stakeholder Engagement and LA11 identif ication of key Issues LA12 Percentage of employees receiving regular performance and career development reviews. 67, 68 Risk Management Diversity and LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. 66 Equal opportunity Company Governance LA14 Ratio of basic salary of men to women by employee category. 66 Code of Conduct Human Right Management Approach 67, 68
Communication Investment and HR1 - We do not have this procedure at present. procurement HR2 45, 47 Partnership practices HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. 67, 68 Participation & Commitment Non- discrimination HR4 Total number of incidents of discrimination and actions taken. - Did not occur in 2013. Customer Relationship Freedom of association HR5 - Did not occur in 2013. Customer Satisfaction and collective bargaining
Privacy and Information Security Child labor HR6 - Did not occur in 2013. Sustainable Environment Forced and compulsory HR7 - Did not occur in 2013. labor Low Carbon GHG Management Sustainable Design Environmental Protection Joyful Working Attracting and Nurturing Talent Communication and Care Prevention of Occupational Hazards Public Welfare GRI Content Indexv 2013 sustainability report sustainable environment GRI Content Indexv
Editorial Principles GRI Indicator Page Statement A Word from the CEO Society Management Approach 77 Community SO1 77 SO2 Percentage and total number of business units analyzed for risks related to corruption. - Did not occur in 2013. About Pegatron Group Corruption SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. 25 Financial Performance SO4 Actions taken in response to incidents of corruption. - Regulated in Employee manual. Financial Snapshot SO5 Public policy positions and participation in public policy development and lobbying. Did not occur in 2013. Public policy - Investment Strategy SO6 34 Award List Compliance SO8 - Did not occur in 2013. Management Product Management Approach 43 Customer health PR1 Stakeholder Engagement and 45, 46, 48 and safety subject to such procedures. identif ication of key Issues Risk Management Products and PR3 45, 46, 48 services labeling Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Company Governance PR5 33, 34 Marketing Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Code of Conduct PR6 - As a DMS company, Pegatron Group does not design and sell its own communications branded products, only provides professional design, manufacturing Communication and services to our branded customers. Therefore, we do not have any promotion toward end users.
Partnership Compliance PR9 - Did not occur in 2013. Participation & Commitment Customer Relationship Customer Satisfaction Privacy and Information Security Sustainable Environment Low Carbon GHG Management Sustainable Design Environmental Protection Joyful Working Attracting and Nurturing Talent Communication and Care Prevention of Occupational Hazards Public Welfare GRI Content Indexv