We value communication and incentive To develop mutual trust and respect between the employer and employees in the workplace

WT values the welfare and rights of its employees and actively promotes harmonious relations between employers and employees. Work rules and various management regulations have been formulated in accordance with the Labor Standards Act and relevant laws and regulations, and Sustainable Development Best Practice Principles has also been formulated to specifically regulate the rights and obligations of both employers and employees in management matters, so that employees can fully understand them and comply with and protect their legitimate rights and interests. WT informs employees of any changes in the operating conditions before the statutory minimum notification period in order to protect the rights and interests of employees.

Implementing human rights risk assessment to create a work-friendly environment

WT follows various international human rights conventions and initiatives such as the Universal Declaration of Human Rights, the United Nations Global Compact (UNGC) and the Declaration of Fundamental Principles and Rights at Work issued by the International Labour Organization (ILO). We have formulated a Social Policy and Code of Conduct, which was signed by the Chairman and published on the company’s official website as a standard for all employees, clients, suppliers and other stakeholders to follow.

In 2021, the results of the human rights risk assessment carried out at WT headquarters in Taiwan revealed no high-risk employees in a total of 13 items in five categories. At the same time, through various education and training mechanisms, WT continues to raise the awareness of human rights issues for all employees, including conducting publicity in pre-employment training for new employees, and through the WT e-Learning Academy, employees can browse relevant online courses at any time. The actual number of employees who completed the training was 206.

Establish multiple channels for smooth communication

WT provides a good platform for communication so that all relevant parties can access the stakeholders’ section on the company’s official website. Internal employees can also submit their feedback through HR emails, telephone calls or in writing to communicate with the company regarding problems or issues encountered in various work systems and environments.

At the same time, we hold regular meetings with our supervisors and departments and notify our employees of operational changes that may have a significant impact on them by means of announcements. Up to now, employees’ rights and interests are well protected and there have been no major employer-employee disputes or negotiations. With good communication and interaction between the two parties, we can keep maintaining harmonious labor relations in the future.

WT believes that only by providing employees with a secure working environment and a perfect welfare system can employees give full play to their strengths without any worries and create maximum value. The benefits provided to full- time employees in 2021 include group insurance, wedding and maternity benefits, health checkups, holiday gifts, staff trips, departmental and club activities, various seminars, and various welfare items. The cost of these benefits was approximately NT$62.2 million.

100% retention rate after one year of reinstatement from parental leave

According to the regulations of the Gender Equality at Work Act, WT provides employees in Taiwan to apply for parental leave until their children reach the age of 3. The number of expected reinstated employees in 2021 is 7, and the actual number of reinstatement is 5 people. The number of female employees’ reinstatement in 2020 is 10. The retention rate after one year of reinstatement is 100%, and the average retention rate in the past three years is 92.86%, which shows that the reinstated employees can still adapt to work and family life after returning to the workplace.

people-oriented Our employees’ team spirit is the biggest driving force for the company

WT understands that people are the most important capital of an enterprise and that the company’s greatest impetus for progress comes from its highly motivated employees! In order to create a better working environment for employees and attract outstanding professionals to join the company, WT complies with the laws and regulations of the the areas where its operating bases are located. The Social Policy and Code of Conduct is formulated to commit to safeguarding labour rights and interests. We plan and execute recruitment activities each year in accordance with the annual plan of workforce needs of each department. As of the end of 2021, all employees of WT’s operating bases are employees with indefinite contracts and no employees with fixed-term contracts have been employed, nor have they cooperated with temp agencies to send employees to work at WT.

 

In order to protect employment opportunities and equality, WT does not require job applicants or employees to indicate their race or ethnicity when they apply for jobs and report for work. We adhere to the requirements of the Sustainability Accounting Standards Board (SASB) for talent diversity standards. Further disclosures on race/ethnicity will be made following the direction and outcome of future revisions to the International Sustainability Standards Board (ISSB), starting with national or regional disclosures in 2021.

 

The turnover rate in the last three years is 12.73%, maintaining a healthy and stable state. 295 people left in 2021 (11.51% turnover rate), which also represents a new low point pver the last three years; The difference between genders is only 1.13%. By age, the turnover rate is only 7.63% for those over 50 and 14.70% for those under 30.

 

In response to the stable turnover rate and the company’s operational growth needs, 506 new employees (19.73%) were hired in 2021, including a higher rate of female employees (22.44%). Based on age groups, the new entry rate of those under 30 years old is 51.00%, which is relatively high due to greater demands for young talent training for operational expansion, but there is still a new entry rate of 4.42% for those over 50.

 

The reason for WT’s success is not only the establishment of outstanding talent, but also of its youthful team, with 94.50% of employees possessing tertiary education or above, which enables WT to demonstrate its ability to respond to changes on time, stimulate innovative ideas and encourage vigorous energy in the face of the rapidly changing business environment and market dynamics.

 

Note: Middle and senior executives: Section head and abovel;Junior supervisors: team leaders: R&D and application engineer related duties; administrative staff: back office duties not directly related to operations; junior staff: duties directly related to operations.

1: The total rate of new wmployee formula: [(new employee hires in 2020)/(Total number full-time employee on December 31, 2020)]* 100%
2: The total rate of employee turnover formula: [(employee turnover in 2020)/(Total number full-time employee on December 31, 2020)]* 100%
3: The number of new hires and the number of employee turnover are deducted from the number of new hires who have left the company during the year.

Concept 3 | Respect professionals and lead with experience

WT’s management team is mainly made up of outstanding professionals in the electronic information industry. In addition to our front-line marketing personnel’s years of experience in channel marketing, WT is also proud of our professional back-office support and technical research and development talent. Externally, we are able to promote our current products, obtain new agent lines, and address customer needs; internally, we are constantly improving our financial business structure. Our leading managers have more than 10 years of experience in the semiconductor channel industry. With years of accumulated agency business and sensitivity to market development trends, we are able to facilitate business development and vision planning, and our operations can continue to flourish.

 

Concept 4 | Getting the right people for the right pursuits and fully utilizing people’s talents

WT has been able to grow steadily and continues to pursue excellence in performance thanks to its professional service team. We develop, maintain and utilize all human resources in the organization in the most appropriate manner so that our people and pursuits can be most appropriately coordinated. In order to give full play to the most effective use of human resources and promote organizational development, WT has made every effort to develop human resources management, with a view to achieving the goal of “matching people and pursuits, getting the right people for the right pursuits and fully utilizing people’s talents”, expanding its operational bases to various countries in East Asia and Southeast Asia and recruiting individuals from different countries. The percentage of non-Chinese speaking employees has reached 14.24% in 2021.

 

In 2021, the percentage of senior executives in each area of operation employing local residents reached 85.42%
1: Senior executive refers to the executive at the division level or above.
2: The local resident of each operation base is defined as the national citizen of the operation point.

Effective water conservation through promotion and implementation

The main uses of water resources at each of WT Taiwan’s operating bases are recycled water for air-conditioning in office areas and water for employees’ daily use. The water discharged is mainly employees’ domestic sewage, which is discharged into the building’s pipeline and then enters the sewer system. The evaporation of water for air-conditioning is the main reason for consumption. As there is no valid statistical method for water discharge and water consumption, only the amount of water withdrawn is disclosed. Water withdrawal in 2021 is 11.14 million liters (ML), a decrease of 5.87 ML compared to 2020. This is mainly due to a 34.52% reduction in office attendance due to the implementation of work from home measures for COVID-19 and a 42.38% reduction in water withdrawal intensity compared to 2020.

 

In 2021, WT has continued to use various means to promote information on water conservation, prioritizing the procurement of water-using equipment with water-saving labels, and regularly deploying staff to inspect whether there are any water leaks, in the hope of implementing water conservation practices in people’s daily life, so as to maximize the effectiveness of water resources.

 

1: The inventory boundary covers WT Microelectronics, Morrihan International Corp., Techmosa International Inc., Maxtek Technology Co., Hongtech Electronics Co., Nuvision Technology, Inc., Brillnics (Taiwan) lnc., WT Joint Staff Welfare Committee, and other operating bases in Taiwan, in which 12 offices are added in Zhonghe and Hsinchu in 2021.
2: In order to implement water resources management, the amount of water consumption is recorded in the water company’s bills from 2021 onward, and water charges and unit prices are used for estimation in the years before 2020. The water charges for the Taichung office are apportioned according to the proportion of the management fee charged by the building management committee where the office is located, so the actual water consumption cannot be accurately determined, and the proportion of the total water intake is extremely low, so it is not included.
3: The denominator used for the water intensity is the floor area; please refer to Note 7 of the greenhouse gas emission intensity.

Discreet selection and gate-keeping Become permanent partners with like-minded suppliers

WT set a Social Policy & Code of Conduct. It is a guideline for WT and its business partners in their operational activities, which includes labor rights, health and safety, ethics, management system, etc. It expressly regulates the appropriate conduct of all operational activities and the commitment to continuous improvement. WT also communicates the guidelines to all types of suppliers and monitors them, so that only those suppliers who adopt the same standards as those pledged will be WT’s partners for continuous collaboration.

 

In addition, environmental protection and safety are also included in the selection criteria for the procurement of common services in Taiwan’s operating bases, and products that do not meet safety standards are not used. For example, tea bags and coffee beans in the staff break room must be labeled as having passed food safety inspection tests, construction materials cannot use building materials containing dangerous chemicals or elements, and curtains and carpets must have flame-resistant labels, etc.

Criteria for screening and evaluating suppliers

In accordance with the Procurement Management Regulations to evaluate suppliers, WT added the Management Points for General Service Suppliers in 2020, requiring general service suppliers at each operating base in Taiwan to sign the Supplier Corporate Social Responsibility Pledge and fill out the online Supplier Self-Assessment Form. The self-assessment includes the operation and provision of products and services with special attention to no significant negative impact on the environment or violation of environmental regulations, and the social policies and codes of conduct of suppliers and environmental standards are evaluated accordingly. In addition, we evaluate the supplier’s social policies, code of conduct, and environmental standards. In addition to quality, technology and finance, social responsibility, labor practices and environmental protection will also be included in the evaluation. If the evaluation results do not meet the requirements, the supplier will be counseled through supplier meetings on how to improve the situation. If the re-evaluation still fails to meet the management requirements, the transaction volume will be reduced or not renewed.

Adopting EU chemical standards, 100% of WT’s top 20 suppliers have passed

WT has adopted the EU Restriction of Hazardous Substances Directive (EU RoHS), the EU Registration, Evaluation, Authorization and Restriction of Chemicals Act (EU REACH) and the US Toxic Substances Control Act (TSCA) to conduct environmental assessment standards for suppliers’ products, and obtains third-party test reports for confirmation when the products are sold as agents. In 2021, 100% of WT’s top 20 semiconductor suppliers passed the EU RoHS and EU REACH chemical management regulations.

WT’s strict control over the environmental and social requirements of its products

With regard to the restriction of banned hazardous chemical substances, WT aims to meet 100% of its clients’ requirements. According to a client’s individual requirements for various products, upstream suppliers are required to provide relevant guarantee certificates of the non-use of banned substances, component composition analysis reports and harmful substance test reports from third-party testing institutes according to product material numbers, so as to comply with the relevant environmental requirements of the products.

 

In response to customer’s requests to provide information on the non-inclusion in the materials purchased of conflict minerals such as tin, tantalum, tungsten and gold from regions with human rights disputes, WT also requires upstream suppliers to provide Conflict Minerals Reporting Template (CMRT) in order to fulfil the universal value of supply-chain humanitarianism.

 

Localization of common services procurement, with a high expense ratio of 96.8%

Since WT’s semiconductor suppliers are major suppliers in the global IC technology fields, the management of local procurement issues focuses on the procurement of non-agent items for common services. In 2021, the proportion of expenses for Taiwan headquarters’ purchases from local suppliers in Taiwan reached 96.80%, and the scope of the statistics included purchases for administrative services, information equipment, logistics centers and application engineering.

ISO14064 Greenhouse Gas Statement

Save Energy with Green Purchasing

In 2021, WT’s total energy consumption is 8,168.08 GJ, of which the most important energy source is non-renewable electricity purchased from power companies, with electricity consumption accounting for 91.18% of the total consumption, while the rest is fuel used in ccompany work vehicles. In the future, depending on the overall energy policy and climate change issues, proper planning and setting will be made to target the use of renewable energy. Total electricity consumption in 2021 was 2.0688 million kWh, with an electricity consumption intensity (GJ/floor area) of 0.28 GJ/m2, a decrease of 8.72% compared to 2020, mainly due to a significant increase in the number of home-based office workers. Therefore, there was a reduction in office electricity consumption due to COVID-19 and the raising of the alert level to 3 in Taiwan beginning in May 2021. The energy intensity of gasoline and diesel fuel is closely related to the nature of the operating activities and is calculated based on the revenue. Gas and diesel energy intensity of 0.0016 GJ/million in 2021 – a significant decrease of 56.85% compared to 2020 due to reduced use of company vehicles as a result of reduced customer visits and the implementation of work from home measures for about three months because of COVID-19. Gasoline consumption was 22,064 liters in 2021, a 45.09% reduction compared to 2020; the vehicles which ran on diesel fuel were scrapped in 2020, so diesel consumption was 0 liters in 2021. 

1:The inventory boundary covers WT Microelectronics, Morrihan International Corp., Techmosa International Inc., Maxtek Technology Co., Hongtech Electronics Co., Nuvision Technology, Inc., Brillnics (Taiwan )lnc., WT Joint Staff Welfare Committee, and other operating bases in Taiwan, in which 12 offices are added in Zhonghe and Hsinchu in 2021.
2:The data source for electricity is Taipower’s billing data, and the data source for gasoline and diesel is the EBCS Goldstream operating platform of CNPC.
3:Power conversion factor: 1 kWh of purchased power = 0.0036 GJ

4:Calorific value conversion coefficients for each energy source: The source is the calorific value table of energy products in the annual report of the Bureau of Energy Statistics, Ministry of Economic Affairs. 1 liter of motor gasoline = 7,800 kcal, 1 liter of diesel = 8,400 kcal

5:1 kcal = 4,186 joules
6:The denominator used for electricity intensity is floor area, please refer to Note 7 for greenhouse gas emission intensity; the denominator used for gasoline and diesel intensity is annual revenue, please refer to 3-2 Financial Performance for historical operating revenue.

Raising Carbon Reduction Standards Responding to the global trend of energy efficiency and carbon reduction

In order to respond to the development of the country’s overall greenhouse gas reduction strategy and achieve the sustainable development goal of energy efficiency and carbon reduction, WT has been implementing greenhouse gas inventories on a yearly basis since 2018 and has appointed a third party to carry out verification, with greenhouse gas emissions originally targeted to be reduced by 1% per annum in 2018 as the base year and raised to 2% per annum from 2022 compared to the base year.

 

In March 2022, the FSC released the Sustainable Development Roadmap, and WT also committed to include the Hong Kong Logistics Center and the Singapore Logistics Center in the GHG emissions inventory boundary from 2022 onwards and to include the operating bases of each subsidiary in the inventory from 2023 onwards, so as to complete the GHG inventory and verification of all the Group’s operating bases. In addition, the disclosure of quantitative data related to energy use, water resources and waste will focus on the operating sites in Taiwan in 2021, and the disclosure of data from other operating sites will be expanded year by year in the future.

 

At the same time, WT will continue to promote the spirit of environmental sustainability and actively participate in activities such as community environmental greening, ecological protection, recycling and reuse of resources and sharing of used items, so as to create a sustainable environment together.

Increasing the proportion of renewable energy use

To be in line with the Ministry of Economic Affairs’ plan to generate 20% of electricity from renewable energy sources by 2025 and the Paris Agreement’s goal of controlling the rate of temperature rise to a maximum of 2°C compared to the pre-industrial era, WT has started various renewable energy assessment programs since 2021 as a feasibility assessment for the future voluntary purchase of green electricity and renewable energy certificates, even though the company is not a major consumer of electricity or a major emitter of carbon emissions. It is a feasibility assessment for the future voluntary purchase of green electricity, renewable energy certificates, etc. to promote the enhancement of the proportion of renewable energy use and reduce WT’s greenhouse gas emissions.

Year-on-year increase in the share of environmental management costs

In order to fulfill its responsibility for environmental sustainability, WT has been actively implementing greenhouse gas inventories for many years, accepting third-party verification and expanding the geographical boundaries of inventories yearly, with the aim of seeking accurate and precise disclosure of various data and promoting various reduction programs, as well as increasing environmental management courses in various departments to implement the concept of sustainability for all employees. In addition, In 2021, WT invest about NT$1.53 million in environmental costs, and encouraging all managers to participate in education and training on environmental sustainability issues, thus significantly increasing the investment in environmental management.

Concerns about climate change and responses to international trends

In 2015, the United Nations formulated the 17 Sustainable Development Goals (SDGs), hoping that through the collective attention of the world’s countries to climate change, the identification of risks and opportunities related to climate change by relevant stakeholders will be enhanced. WT also responded to the international trend to improve environment-oriented development.

Prioitize green labeled products and increase green procurement by 121% by 2021

In line with the Environmental Protection Administration’s policy of encouraging private enterprises to choose products with environmental protection labels, energy-saving labels, green building materials labels, water-saving labels, Type II environmental protection labels, and carbon footprint reduction labels, WT has pledged to give priority to the purchase of green labeled products. Green procurement amounted to NT$14.88 million in 2021, an increase of 121% compared to 2020, and WT was honored as a green consumption enterprise by the New Taipei City Government. In the future, WT will continue to actively promote green procurement and lead the social trend of purchasing green products in general.

Sort and recycle waste. Reuse packaging materials

In the course of operations, WT’s waste is mainly business-type waste and domestic waste generated by employees in the office. The logistics center also has waste related to outer boxes, cardboard, filling materials and sealing boxes, all of which are non-hazardous waste. In order to reduce the production of waste, WT insists on making every effort to properly separate waste, and all packaging materials required for logistics operations, such as outer boxes, cartons and cardboard, are made of recycled materials that can be recycled or will naturally decompose. WT also actively implements source reduction. The logistics centers in Taiwan and Hong Kong have received ISO 14001 certification in environmental management systems. In addition to the implementation of the recycling policy, waste is managed centrally and the quantity of waste is recorded and transported regularly.

 

In the future, we will continue to reduce the procurement of disposable consumer goods, give priority to the use of durable and recyclable products, step up efforts to promote waste reduction and carbon reduction among colleagues and implement waste separation and resource recovery and reuse.

Prevention management, develop improved security measures

In accordance with fire safety regulations, WT has set up various comprehensive protective facilities in the work environment and has delineated areas for fire prevention and management. We arranged for colleagues in charge of each floor to conduct regular inspections every month so as to prevent any possible disaster. Every year, staff members are sent to participate in fire drills and training activities organized by the Management Committee to understand the evacuation procedure forour park. Every year in March, external fire-fighting agencies carry out inspections and make reports, and fire-fighting establishments and drills are carried out in March and July every year to strengthen the escape and emergency response capabilities of the entire staff.

Promote TCFD project to initiate climate change management

The risks of climate change brought about by global warming may cause unanticipated operational impacts. As an important enterprise in the electronic product distribution business, WT should play a leading role at both the top and bottom of the chain the top and bottom of the chain, and at the same time fully understanding the risks and opportunities that climate change may bring in the electronic industry chain. In 2021, WT initiated the introduction of a climate change risk management project in response to the Task Force on Climate-related Financial Disclosures (TCFD) proposed by the Financial Sustainability Board (FSB). The framework proposed by the Task Force on Climate-related Financial Disclosures (TCFD) is expected to strengthen corporate resilience through the establishment of a mechanism to manage climate change risks and opportunities.

 

Through awareness building, risk identification, departmental discussions and communication with senior management, WT first establishes company-wide awareness and identification related to climate change from the bottom up, building climate change awareness and knowledge throughout the whole company. The projects identified by each department will be used as the next stage of planning to promote the response plan for the reference of the governance level, and finally will be reported and communicated by the Risk Management Committee under the Board of Directors as the basis for the subsequent presentation to the Board of Directors to implement top-down climate management policy.

 

Summarize the 21 possible risk items. Promote corresponding solutions.

A total of 21 items were listed as possible risk items after consolidating the assessment results provided by various departments of the company. According to the time frame, some risks have different risk impacts in different time frames. There are 12 short-term risks, 11 medium-term risks and 8 long-term risks. After discussions and decisions made by department heads in meetings, immediate physical risks and risks of regulatory and reputational transformation were listed as WT’s three major climate change risks.

 

The results of the risk assessment will be reviewed again in 2022 and the planning of the response plan will be promoted. The Director of Sustainability will report to the Risk Management Committee, and the results will be included in the Board of Directors’ meeting to formally initiate climate change management.

Congratulations on reaching the emission reduction target by 2021!

As global warming becomes increasingly serious, WT has, since 2018, carried out a complete inventory of GHG emissions with reference to the requirements of the Organizational Greenhouse Gas Emissions (ISO 14064-1:2006) and the Greenhouse Gas Inventory Protocol (GHG Protocol), and performed GHG Scope 1 and Scope 2 inventory operations. Since 2018, we have completed annual verification procedures by third-party notary units. Starting in 2018, we have completed the verification process by a third-party notary every year to ensure the correctness and reliability of the GHG emissions inventory, so as to review the reduction situation and revise the management policy on a rolling basis.

 

In 2019, WT pledged to reduce the intensity of GHG emissions in areas 1 and 2 by 1% per year compared to 2018, using 2018 as the base year.

19.04% carbon reduction achieved in four years

In 2021, WT had already reached the expected reduction target, with total GHG emissions of 1,374.20 tonnes of carbon dioxide equivalent (tonnes CO2e), of which 0.0442 tonnes CO e/square meter (m2) for Scope 1 and 2, a 19.04% reduction in intensity compared to 2018 (base year). From 2022 onwards, the reduction target will be further increased by reducing the annual Scope 1 and 2 GHG emission intensity by 2% compared to 2018 (base year).

Energy Saving Re-Advancement Measures for 2022

  • Actively seek green energy sources, e.g. the purchase of green electricity, renewable energy certificates, etc.
  • Progressively review the replacement of old equipment that has deteriorated in performance.
  • Carry out regular maintenance of high energy-consuming equipment.
  • Priority is given to the procurement of energy-efficient equipment and green-labelled products.
  • Each appliance and piece of equipment is equipped with an energy- saving controller to automatically turn on the energy-saving mode.
  • The lighting fixtures and air-conditioning power supplies are controlled on a zonal basis with the installation of timer controls.
  • Gradually replace all lighting fixtures and emergency exit signs with LED energy-efficient fixtures, and for venues with lower illumination requirements, turn on the lights at intervals or reduce the number of tubes if there are no safety concerns.
  • Non-essential lighting turns off automatically during lunch break.
  • White or light-coloured walls and ceilings are preferred to increase the light reflection effect and reduce the number of light fittings.
  • The air conditioning temperature is set at 26~28°C, and the fan is set to the appropriate speed.
  • The staff will be tasked with regularly checking whether the lights, air-conditioning and projection equipment are switched off when not in use.
  • Infrared body sensor switches are used for low-frequency public space lighting.
  • Install blackout curtains for room cooling.
  • Continue to promote greenhouse gas reduction, waste separation and avoidance of standby power wastage.
  • Encourage staff to make greater use of public transportation or ride-sharing for commuting to and from work, traveling to and from work and staff travel.
  • Increase the greening of the office environmentt.

Consistent Green Thinking Promote low-loss, high-performance semiconductor components

Product design should not only be concerned with the cost, function and quality of the product, but also the potential impact of the product on the environment. We prioritize the selection of parts and components that can improve energy efficiency and do not use harmful substances to achieve energy efficiency, carbon reduction and green requirements.Semiconductor components are an important part of electronic products.

 

In line with the green design mindset, semiconductor components that are used must have low-loss and high-performance characteristics, and WT is strengthening the promotion of green and high-performance semiconductor component products so that clients can adhere to the design concepts and principles of environmental protection, energy efficiency and optimization.

 

As a professional distributor of semiconductor components, WT provides the products, manufactured by global leading semiconductor companies, with the features of efficiency improvement and better performance under less power consumption.

 

In addition, through our understanding of market development trends and our mastery of low-consumption and high- efficiency product application technologies, WT continues to promote and provide education and training on low- consumption and high-efficiency products, providing clients with suitable low-consumption and high-efficiency product solutions or reference designs and assisting clients in realizing green designs. In 2021, NT$609 million was invested in R&D, an increase of 57.77% compared to 2020.

 

These low-consumption and high-efficiency electronic components are widely used in various applications such as communications, computers and peripherals, consumer electronics, industrial control, the Internet of Things and automobiles through the promotion of WT. As the demand for energy efficiency, carbon reduction and environmental protection is recognized by consumers, the demand from clients has also increased.

Advanced electronic system for comprehensive implementation paperless inventory management

In Taiwan, Hong Kong, Shenzhen, Singapore and Korea, WT has logistics centers for receiving and delivering goods. When purchasing goods, orders are placed in the logistics center nearest to the client according to their demand, thus reducing the distance between warehouse transfer, delivery and transportation. All logistics center operations have been integrated with advanced logistics information systems, enabling paperless electronic operations. Every corner of the logistics center is connected via WiFi.. After scanning the product and storage barcode with a PDA, the system will immediately adjust the account and change the storage position without the need for inventory cards.

Not only packaging reduction, but also recycling

WT has continued to invest in packaging reduction, including prioritizing the use of paper pallets for product carriage in the warehouse and for outbound shipments, reducing the number of product fillers. We also use renewable materials for packaging materials required in logistics operations. Meanwhile, related logistics operations systems have been digitalized and the number of shipping trips has been optimized through the system. In 2021, there were 12,236 fewer shipping trips, thanks to the system’s consolidation of order shipments.

After the products are stocked, if there is no need to re-pack and re-deliver, they will be directly stocked in the packaging of the original shipment. If they need to be re-packed, all the cartons and filling materials inside the cartons will be recycled when they are stocked, so that they can be recycled and classified as “environmentally friendly cartons” for statistical and management purposes. We not only give priority to recycled cartons for shipment but also reduce the use of new cartons. The cartons we purchase ourselves are not redundantly printed, but only marked with cautions. The padding used to protect the products inside the cartons is made of environmentally friendly materials that that are naturally biodegradable. The average amount of padding used per carton has been reduced from 0.37 meters per carton in 2020 to 0.23 meters per carton in 2021, a significant decrease of 37.84%. The use of pallets in logistics centers will also be prioritized over the use of paper pallets and less plastic.