ESG

Sustainable Operations

Letter from the Chairman

In recent years, the world has been in an era of rapid change, with wars, epidemics and inflation, and corporate operations and the overall economy facing shocks and impacts. Not only that, the impact of climate change on the living environment is even more severe, and the pressure on companies to cope with these superimposed problems is even more urgent. The United Nations World Meteorological Organization (WMO) published its annual global weather report, pointing out that 2023 will be the year with the highest average surface temperature on record, 1.45 degrees Celsius higher than pre-industrialization, close to the 1.5-degree upper limit set at the 2015 Paris Climate Conference. Extreme and severe climate including heat waves, wildfires, heavy rains, floods, etc. impact our daily lives with higher frequency and greater intensity.

 

Implementing sustainable development of enterprises

As a global citizen, AOT has established a Sustainable Development Committee in August 2024 to promote sustainability. At the same time, the board of directors also passed the “Risk Management Policies and Procedures” to establish a sound risk management system. We hope to promote sustainable development, enhance international competitiveness, improve risk management and promote social justice. Through the joint efforts of all employees, we will create better results for all stakeholders.

 

Independent greenhouse gas inventory

In the face of global consensus on net zero carbon emissions at COP28, the official implementation of the Nationally Determined Contributions (NDCs) , the Climate Change Response Act, and the formal implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM) in 2026, we independently conducted our own Scope 1 and Scope 2 greenhouse gas inventory in 2013 and obtained the ISO14064-1 system certificate prior to the regulation,. In 2023, we further advance the Scope 3 greenhouse gas inventory and verification. In the future, we will also follow the sustainable development path, gradually promote the completion of greenhouse gas inventory and certification of each subsidiary, and also make early preparations for possible carbon changes internationally. In 2023, in addition to implementing energy-saving and carbon-reduction solutions such as turning off lights and controlling air-conditioning temperature, we also adjusted the equipment operation time management, saving a total of 1.27 million kWh of electricity, a reduction of 8.11%. Water consumption was reduced by 4.75% by improving the operating efficiency of water storage facilities, reducing evaporation and overflow rates. In addition, we regularly inspects and manages hazardous substances in accordance with the international standards of RoHS and REACH, and the supply chain manufacturers also cooperate to reduce the impact of operating activities on the environment.

 

Achieving a gradual transformation in information security

In the field of information security, major global cyber security incidents continue to occur frequently in 2023. The threat of cyber-attacks will continue to rise, and threats such as ransomware, data leakage, and hacker attacks will emerge in an endless stream. The cyber security situation faced by enterprises will become more severe. In view of the importance of information security control to the sustainable development of the company, we have introduced automated control measures such as systematic control of mobile devices and two-factor authentication on the premise of systematic information security control. At the same time, we have also started the ISO 27001 certification plan introduction, and we expect to complete the certification by the end of 2025. Through the ISO 27001 certification process, we will reduce the security vulnerabilities of the company’s network and improve the company’s risk management capabilities.

 

Contribute to energy saving and carbon reduction benefits

Climate change is an important issue for all mankind. No one can stay out of it. In the new game of net zero sustainability, we see not only new risks brought by carbon issues, but also possible new opportunities. We will do our best to make a positive contribution to global warming, and also consider the operational risks that may arise from climate change and make comprehensive preparations for its sustainable operations. AOT is fortunate to continue to manufacture environmentally friendly products such as high-power LED products and automotive LED products for the world. Taking high-power LED bulbs as an example, compared with the annual power consumption of traditional bulbs, our high-power LED products with 2.39 million shipment volume saves about 1.738 million kWh of electricity for the environment in the overall value chain in 2023. In the future, we will continue to be committed to the research and development of high-efficiency energy-saving products and contribute to the carbon reduction benefits of LED products.

 

Promoting social prosperity

AOT is committed to fulfilling its corporate social responsibilities while pursuing revenue and profits. Ours corporate social responsibility practice principles are implemented simultaneously in six major categories: governance operations, environmental sustainability, supply chain sustainability, employee care, social welfare, and risk management. We are committed to environmental protection and social environmental responsibility, and we also attach great importance to employee care, health and safety, and talent. We adheres to the people-oriented concept, strives to provide employees with a reasonable salary system, implements the requirements of RBA, continuously improves the working environment and treatment of employees, implements the ISO 45001 occupational safety and health management system, and cares for employees through complete education and training and health examinations. We take measures to enable employees to work in a legal, fair, safe and healthy working environment. In addition, based on the concept of “giving back to society”, we established the “AOT Cultural Foundation” in 2019. Through community participation, we express our corporate responsibility of taking from society and giving back to society. We hope to pursue revenue and profit while also actively participate in public welfare activities, fulfill our corporate responsibilities, establish good interactions with the society, and deeply cultivate the goodwill of sustainable operations and giving back to the society. In order to implement the spirit of localization and deep cultivation, we donated and sponsored community nursing homes, disadvantaged groups in the community, charitable groups, education in remote areas of Hsinchu, and the inheritance of traditional skills, totaling more than NT$400,000, benefiting more than 1,000 people In 2023.

 

Finally, I believe that these efforts will have a positive impact on the company’s future development. Through continuous innovation, cooperation and strategic adjustment, we can coexist and prosper with the environment and achieve sustainable development of the enterprise. We are confident that through the joint efforts of all employees, we will eventually overcome various challenges and achieve our common sustainable development goals.