Category: Environmental

Innovation of products and management are accelerated to meet the new challenges of sustainable development.

Activate Green Innovation

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Addressing climate risks and opportunities、Enhancing green design、Strengthening social resilience、Participating in advocacy initiatives

As a leading semiconductor distributor, WT is committed to providing cutting-edge products and exceptional solutions to tens of thousands of customers and end-users worldwide, overcoming various challenges. However, facing the increasingly severe climate change, WT is committed to taking responsibility, actively responding to climate risks, and seizing the opportunities that arise. We will continue to deepen our expertise in green design, develop energy-saving products and solutions, optimize energy efficiency, and reduce the carbon footprint of our customers and end-users. At the same time, we will work with supply chain partners to respond to various advocacy initiatives and jointly implement the four major green design goals of energy conservation, waste reduction, resilience, and efficiency.

 

 

WT is committed to advancing clean technology and green design, guided by three core values and four action strategies

Addressing climate risks and opportunities

WT has identified five main climate risk factors:

(1) Extreme weather event risk: Property damage or transportation disruptions caused by natural disasters such as typhoons, hurricanes, floods, droughts, high temperatures, and heavy snow.

(2) Climate regulatory and policy change risk: Laws or standards introduced by countries or regions to reduce carbon emissions and waste, which may affect production costs and require products to meet stricter standards after changes.

(3) Market demand change risk: Increased demand for energy-efficient and high-performance products due to rising environmental awareness, leading to the inability to continue selling or using existing products.

(4) Technological innovation and iteration risk: Economic and equipment investment in developing new technologies and components, requiring significant professional manpower and resources for research and development.

(5) Supply chain disruption risk: Production or supply chain disruptions caused by climate change, such as resource scarcity affecting production or transportation, electricity, or water resources, leading to disruptions throughout the supply chain.

In addition to identifying the aforementioned risks, WT actively invests resources to address climate opportunities. In green technology innovation, WT has facilitated the adoption and implementation of technologies such as green energy and energy storage within the industry chain through long-term development and promotion. Regarding the issue of improving energy efficiency, WT continues to accelerate research and development and increase investment in research related to high-energy-consuming industries such as power supplies, motors, and artificial intelligence. In emerging markets such as environmental monitoring and climate early warning, or in response to supply chain challenges posed by extreme climates, we also maintain close collaboration with customers and suppliers to enhance supply chain resilience. We continuously and actively participate in green initiatives, promote environmentally friendly electronic components, and develop the green product market, enabling WT to make significant contributions.

 

Enhancing Green Design

Green design is not only a key to addressing climate change, but also a significant opportunity for industrial development. As a leading semiconductor distributor and a key player in the electronics industry, WT actively invests in technological innovation, market expansion, and application deepening of green design, while integrating clean technology and green thinking into every design. From the selection of green materials for semiconductor components and supply chain management to the sustainable architecture, component durability, and energy-efficient applications of product design, we are committed to extending product lifecycles. With the responsibility of a semiconductor distributor, WT contributes to the electronics industry’s response to climate change through green innovation.

WT continues to collaborate with suppliers, prioritizing products with green design concepts (such as those assessed to reduce resource usage or chemical substance content by 10% or more).

 

We focus on green applications and clean technology (such as clean transportation in electric vehicles or autonomous driving systems), and continuously improve energy efficiency in data centers, communication systems, public facilities, and other areas. In addition to continuously introducing more energy-efficient solutions, we also propose designs that benefit the environment and human health and safety in diverse fields such as industrial automation, infrastructure, and medical and healthcare.

Strengthening social resilience

WT provides high-quality products from leading suppliers to serve tens of thousands of manufacturers worldwide, and continuously builds strategic partnerships with leading vendors and customers. We not only strengthen supply chain services and improve inventory management to address supply chain disruptions caused by extreme weather, but also actively increase R&D investment in green design. In these green designs, we act as a bridge for multi-party collaboration between industry, academia, and research, and propose excellent solutions. This not only enhances the technological development of our customers but also cultivates talent, improves industrial innovation capabilities, and accelerates green transformation. These actions not only strengthen the resilience of the supply chain and industry but also make society safer and more progressive.

 

To design resilience applications, extreme weather may cause disruptions in electricity, communication, transportation, and other areas. WT, in its research, development, and promotion, has emphasized the importance of resilience in various applications. For example, we have invested in the research and development of technologies such as renewable energy and grid-tied systems in power supply systems, battery safety and power management in energy storage systems, and the design of solutions for early warning, protection, and backup in response to power outages or quality degradation in different application areas.

 

In strengthening system resilience, we emphasize redundant design and flexible architecture, enhance the ability to respond to faults or risks, and continuously improve scalability. WT uses a modular architecture to make design redundancy and maintenance simpler and easier, and can shorten the replacement or response time in the event of a fault or risk. Modular design also has many advantages when functional upgrades are required, which not only ensures that the system is not interrupted due to upgrades, but also disperses development resources, reduces vulnerability risks, and eliminates safety hazards, further strengthening application resilience.

Participating in advocacy initiatives

WT collaborates closely with suppliers and customers, actively participating in green product and design initiatives, and prioritizing them in new product and application development.

 

In the semiconductor and electronic design industry chain, WT provided three core values:

Platform Integration: Serving as a bridge between suppliers and customers, facilitating collaboration

Technical Services: Providing technical services and promoting low-power, high-performance products and applications

Solution provider: Investing resources in researching clean technology-related products and applications, and providing solutions

 

In addition, WT actively participates in sustainable development seminars, engaging various industries (including transportation, raw materials, academic research, and petrochemicals). These conferences involve sharing the electronics industry’s net-zero goals and achievements, and exploring topics such as green energy, climate risks and opportunities, and carbon capture and storage. Through these actions, WT is committed to promoting the sustainable development of the industry.

 

Accelerating industry’s net-zero emissions through industry-academia collaboration

WT is dedicated to being a strategic partner to suppliers and customers. We have continuously invested resources to provide diverse technical services, assisting customers in quickly developing solutions and becoming a technical platform that delivers high-quality products and optimal solutions across various domains.

In pursuit of net-zero carbon emissions, industry-academia collaboration is crucial. WT actively promotes such collaboration through the following methods:

Information Sharing: Sharing real-world data from production, operations, and field applications, along with relevant data, to provide academic institutions with references for green design related to net-zero carbon emissions.

Technical Cooperation: Leveraging the academic community’s expertise and research resources in areas such as carbon capture, renewable energy, and carbon reduction technologies to accelerate technological innovation and research and development.

Talent Development and Resource Integration: Collaborating with suppliers and educational institutions to propose joint research projects, establish industry-academia programs, and participate in results presentations and exchanges, integrating the resources and strengths of academia and industry to accelerate the research, development, and application of carbon reduction technologies, and cultivate professional talent.

 

Through these efforts, WT not only promotes the sustainable development of the industry but also accelerates the realization of critical net-zero goals.

 

 

In 2024, facilitated an exchange visit to WT for international students from National Chengchi University, supporting international talent career development and promoting cross-border industry-academia collaboration.

 

Improve the past, change the future

As a leading semiconductor distributor, WT collaborates with hundreds of suppliers to serve tens of thousands of customers worldwide, jointly driving product and application innovation, improving lives, and shaping the multi-faceted future of the semiconductor industry in areas such as environment, society, education, economy, technology, and safety.

 

Review and Collaboration:

－Continuously collaborate with suppliers and customers to expand energy consumption and carbon footprint inventories

－Ensure suppliers provide green products that comply with regulations

－Collaborate with customers to reduce waste and adopt energy-saving technologies

 

Short-Term Plan:

－Actively distribute and promote green products

－Invest in research and development of forward-looking sustainable green solutions to drive industry green transformation

 

Mid-Term Plan:

－Continuously participate in green initiatives, implementing green design concepts in various applications

－Pursue environmentally friendly designs, providing low-power, high-performance chips and solutions

 

Long-Term Plan:

－Continuously disclose sustainable supply chain audit results and respond to carbon footprint inventory requests

－Collaborate with customers on inventory management to extend product lifecycles

－Collaborate with suppliers to strengthen global logistics and reuse plans, achieving waste reduction and a resilient future

 

High energy use, high efficiency needed

Artificial intelligence (AI) has experienced continuous development in recent years. Whether it’s machine learning, deep learning, or generative AI, coupled with the increasing accessibility and easy to use. AI’s integration and fusion across various industries has been promoted. For instance, AI is utilized to assist medical procedures and new drug development in health and preventive medicine. In financial management and economic activities, AI enhances customer experience and strengthens risk management. In manufacturing and retail, AI automates production and improves quality management through intelligent solutions. In personal transportation and logistics management, AI assistance makes transportation safer and more efficient.

 

All these conveniences and changes brought about by AI originate from semiconductor components. However, for AI to deliver accurate and effective functions, it requires training and inference capabilities. Comparing the power consumption differences between AI servers and traditional servers, traditional servers typically consume between 300 to 500 watts, while the addition of AI accelerator GPUs or TPUs significantly increases power consumption to over 2000 watts.

 

WT recognizes the highly promising and forward-looking of AI. However, technological development must incorporate environmental sustainability as the foundation of all designs. Therefore, we have collaborated with suppliers and customers to propose three solutions to address the high energy consumption of AI servers:

1.We have designed a 3000-watt power supply for servers based on advanced control technologies and high-efficiency electronic components.

2.In collaboration with computing units such as CPUs/GPUs/TPUs/ASICs, we provide core power solutions with high energy efficiency to meet their computational demands.

3.In partnership with thermal management and cooling technology companies, we provide microcontrollers with communication and management functions to efficiently reduce system power consumption by dissipating heat generated by high-performance hardware.

 

Continuous increase in R&D Investment and clean technology (low-carbon products) revenue contribution

In 2024, research and development investment reached NT$851 million. WT commits to continuously investing in clean technology R&D resources, aiming to increase R&D expenditure to NT$1 billion by 2030. WT focuses on the development and advancement of areas such as green energy, energy storage, and efficiency. Clean technology-related (low-carbon products) revenue reached 14.07% of total revenue, increased 2.64 percentage point compared with previous year. WT targets to achieve the goal of 20% clean technology-related revenue contribution by 2030.

Investing in solar plant developer and serving as a representative director

WT invested NTD 12.5 million in Daypower Co., Ltd. in April 2023. WT owns 10% shares of Daypower and serves as a representative director. WT participated in cash capital increase of Daypower and invested NTD 12.5 million in August 2024. WT maintains 10% shares of Daypower and accumulated investment amount reaches NTD 25 million. Daypower is a solar plant developer and completed 3.24 MW installation in 2024. Self-held solar plant reached 3.00 MW installation accumulatively in 2024, which generated 3.75 million kwh in 2024, equaling to 1,853 ton CO2 reduction.

 

 

 

Continuous monitoring of Environmental and Social management by key suppliers

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WT is committed to promoting sustainable development in the supply chain. We encourage our major suppliers to provide high-quality products and services while complying with national regulations and policies. They must ensure that their products and manufacturing processes adhere to environmental and social responsibility standards. Suppliers are required to prohibit the use of hazardous substances (such as those restricted by the EU RoHS directive), ensure that raw materials do not contain conflict minerals, and sign a Conflict-Free Minerals Declaration.

 

Additionally, WT encourages suppliers to adopt ISO certifications to enhance quality management. Suppliers are also urged to implement occupational safety measures, labor rights protections, and environmental protection initiatives, working together to establish a responsible and sustainable supply chain.

 

WT considers suppliers as long-term partners and maintains close communication with them. Through continuous engagement, we promote the implementation of environmental sustainability, social responsibility, and ethical standards. We also emphasize compliance and corporate responsibility in operations, ensuring that suppliers commit to ethical business practices, human rights principles, and corporate integrity.

 

Self-Regulation of major Supplier Codes of Conduct

The major suppliers have established comprehensive business conduct guidelines to ensure compliance with relevant regulations and international standards.

 

Supplier Environmental Management and International Standard Certifications

WT places high importance on supply chain responsibility. WT has identified and prioritized 36 key suppliers, which collectively account for over 80% of total revenue. Annually, WT conducts assessments on these suppliers, covering areas such as Responsible Business Alliance (RBA) compliance, restricted substance commitments, and conflict minerals policies. Additionally, the list of key suppliers is reviewed and updated at the beginning of each year.

 

The key suppliers have adopted ISO certifications to ensure their operations meet international standards. By implementing strict management systems, they enhance operational efficiency and minimize environmental impact.

 

As of the end of 2024, key suppliers have achieved the following certifications:
  • ISO 14001 Environmental Management System : In the 36 key suppliers, 33 have obtained certification, accounting for 92%.
  • ISO 9001 Quality Management System : In the 36 key suppliers, 34 have obtained certification, accounting for 97%.

 

Employee Rights and Labor Protection

The suppliers must comply with local laws to protect employee rights, ensuring:

  • Respect for employees’ rights to unionize, engage in collective bargaining, and enjoy freedom of association.
  • Establishment of communication channels to safeguard labor rights and prevent forced labor, child labor, or discrimination.

Responsible Business Alliance (RBA) Code of Conduct

WT supports and adheres to RBA Code of Conduct, striving to improve labor rights, health and safety, and environmental standards to ensure compliance with international and ethical norms.

As of the end of 2024, WT continuously monitors 36 key suppliers, of which 22 are official RBA members, representing 61% and having established comprehensive RBA guidelines.

Additionally, WT actively tracks whether suppliers undergo RBA audits to promote ongoing improvements in labor conditions throughout the supply chain.

 

Compliance of Agency Products with Global Substance Regulations

 

 

Chemical Management and Product Compliance

With increasing global emphasis on environmental protection, WT continues to monitor regulatory developments and ensures that suppliers’ agency products fully comply with relevant global substance regulations. We actively track and update compliance measures to meet customer requirements.

 

When customers request material substance lists for products, WT assists in obtaining relevant documentation from suppliers, such as non-use declarations, product composition reports, and third-party hazardous substance testing reports.

 

In 2024, all sold products complied with customer chemical management requirements. All of 36 key suppliers publicly declared full compliance with relevant chemical management regulations.

 

As of the end of 2024, compliance rates of key suppliers are as follows:

  • EU RoHS (Restriction of Hazardous Substances Directive):In the 36 major suppliers, 24 suppliers have publicly disclosed compliance, accounting for 66.7%, while 12 suppliers have not disclosed, accounting for 33.3%, but these suppliers are required to submit declaration letters confirming that their product materials comply with major international environmental regulations.
  • REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals): In the 36 major suppliers, 23 suppliers have publicly disclosed compliance, accounting for 63.9%, while 13 suppliers have not disclosed, accounting for 36.1%, but these suppliers are required to submit declaration letters confirming that their product materials comply with major international environmental regulations.

Furthermore, WT is actively implementing system-based management. In the future, when creating new product materials, relevant departments will be notified to obtain the necessary material substance lists (such as product composition reports and third-party hazardous substance testing reports). This will ensure compliance and improve the efficiency of providing relevant material disclosures.

 

PFAS (Per- and Polyfluoroalkyl Substances) Management

In 2023, the EU introduced a proposal to ban PFAS, a broad class of synthetic chemicals known for their persistence, long-range transport potential, and bioaccumulation risks. These substances pose significant environmental and health hazards, including water pollution.

 

In industries such as semiconductors, no viable alternatives currently exist, and immediate production cessation is not feasible. Therefore, a transition period of 13-15 years will be implemented upon enforcement of the regulations.

 

WT continues to investigate PFAS usage in supplier products and discloses this information to customers, aiming to mitigate environmental and health risks.

 

Carbon Footprint and Net-Zero Emission Goals

In response to global carbon reduction initiatives, WT is dedicated to carbon footprint assessments, aiming to reduce, capture, and reuse greenhouse gas emissions. The long-term goal is to achieve Net Zero Emissions by 2050, transforming carbon reduction efforts into competitive advantages and steadily implementing sustainability initiatives.

 

The customer requests products with conflict minerals traceability, 100% sourced from qualified smelters

Conflict Minerals Sourcing and Traceability Mechanisms

Referencing international concerns about conflict minerals from regions with human rights issues, in order to uphold the universal values of humanitarianism in the supply chain, WT published a Conflict Minerals Policy on its website in 2023. This policy mandates that all major suppliers comply with the U.S. Securities and Exchange Commission’s (SEC) conflict minerals regulation, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA). Suppliers must fully disclose the sources of conflict minerals used in their manufacturing processes, including gold (Au), tantalum (Ta), tin (Sn), and tungsten (W) (collectively known as 3TG), and confirm whether these materials originate from non-compliant mines in the Democratic Republic of Congo and neighboring regions.

 

Survey results indicate that the products supplied by suppliers contain conflict minerals such as gold, tantalum, tin, and tungsten. WT actively monitors updates from the Responsible Minerals Initiative (RMI) regarding smelter assessments to obtain the latest versions of conflict-free documentation (Conflict Minerals Reporting Template – CMRT, Extended Minerals Reporting Template – EMRT, and Additional Minerals Reporting Template – AMRT). In alignment with customer requirements on conflict minerals policies, WT requests CMRT, EMRT, or AMRT reports from suppliers to ensure full supply chain compliance.

 

As of the end of 2024, WT tracked 36 key suppliers, with the following compliance rates:

  • 29 suppliers have publicly disclosed that they do not use conflict minerals, accounting for 80.6%.
  • 7 suppliers have not disclosed, accounting for 19.4%, but these suppliers are required to provide corresponding compliance declarations to demonstrate their adherence to RBA principles and relevant regulations.

 

 

 

 

Promoting three major waste reduction policies: waste sorting, recycling, and reusing packaging materials

Posted on by vicky_yeh@bwnet.com.tw

WT is committed to source reduction and recycling, and selects qualified suppliers to properly dispose the waste. The waste generated during WT’s operation is mainly made up of operational waste, daily-life waste discarded by employees, and redundant sample ICs in the offices, and cartons, paper boards, fillers and waste left from carton sealing at the logistics centers.

WT has been proactively making sustainability efforts. It plans to optimize and transform internal meeting setups to meet the prerequisite of being eco-friendly and beneficial for sustainability. Meetings will be plastic-free and disposablefree. In principle, no disposable tableware or plastic bags will be used. Meeting venues will be decorated with artificial flowers as they are more reusable, and bottled water will be replaced with glasses towards the ultimate goal of plastic-free meetings. In addition, the offices will buy less and less single-use consumables for daily operations and use durable recyclable products whenever possible. Waste reduction and carbon reduction awareness campaign for employees will be intensified, and waste sorting and recycling measures implemented to achieve the goal of waste reduction.

As of the end of 2023, no hazardous waste is generated. Among the non-hazardous waste, the recyclables are collected and reused, while the non-recyclables are incinerated with energy recovery. No waste is land-filled. The total amount of waste was 132.56 tons, down 17.90 tons or 11.90% relative to 2022. Daily-life waste has decreased over the years, mainly as a result of effective waste reduction and sorting practices.

Improving logistics operations and implementing green transportation

Posted on by vicky_yeh@bwnet.com.tw

As logistics operations is its most important operational activity besides integrated product sales and services, WT implements the low-carbon internal logistics operation strategy through four major logistics operation improvements. In addition, with regard to the transportation carbon reduction emissions strategy, it has also begun to evaluate the feasibility of green transportation.

 

Updating warehouse equipment to improve energy efficiency

As 3C products must be stored in a constant temperature and humidity environment to maintain their quality and performance, a 3C product warehouse must be equipped with appliances such as air conditioners, dehumidifiers, etc. WT continues to introduce and connect intelligent temperature and humidity monitors to AC controllers to reduce energy consumption.

 

Introducing advanced electronic systems for comprehensive paperless inventory management

WT has five logistics centers, located in Taiwan, Hong Kong, Shenzhen, Singapore, and South Korea. When a purchase order is placed, the shortest footprint across the supply chain as well as the respective demand and inventory of these locations are taken into account by the system to determine and designate a logistic center for the vendors to ship to.

An advanced logistics system has been deployed to all the logistics centers to achieve paperless electronic operations, while handheld devices are used to scan product and storage placement barcodes for all warehouse handling including receiving, shipment, and relocation. Accounting and location is updated in real-time by the system, replacing the significant amount of paperwork that it used to involve.

 

Largely cutting paper use by shipment consolidation and electronic procedures

In addition to requiring vendors to ship goods to designated logistics centers, WT also works with customers to consolidate purchase orders for shipment whenever possible to minimize transportation trips and carbon mileage. In 2023, order consolidation reduced the number of shipments by nearly 250,000, or 56.65%. Among them, the Shenzhen logistics center serves a relatively small number of customers and thus has difficulties in consolidating shipment orders.

 

Buying less new cartons and filling materials by reusing packaging cartons

Through the integrated management of sales orders and purchase orders, some received products can be shipped out in full boxes. They will be put into storage in their original packaging without unpacking. No waste will be generated. If repackaging is necessary, the removed cartons and all the fillers within will be collected upon receiving process. The cartons will be classified as “eco-friendly cartons” for reuse. For shipment packaging, recycled cartons will be used whenever possible to reduce the use of new cartons. The fillers used to protect the products in the cartons are made of bio-degradable materials.

In 2020, Taiwan and Hong Kong began to keep track of the amount of fillers used (in meters). An average of 0.21 meters of fillers were used per carton in 2023, down by 43.24% from 2020. The unit usage in 2023 increased slightly from 2022, because a new standard packaging and filling procedure was introduced to meet customers’ request for better product protection. Singapore and South Korea Logistics Centers do not purchase fillers, as the goods received at the two locations are shipped out in full boxes to single customers, and do not require repackaging.

WT continues to cut down on packaging materials with efforts including using paper pallets whenever possible for loading products in warehouses and shipments, reducing the usage of fillers, and always using renewable packaging materials for logistics operations. Newly purchased cartons also adopt the principle of minimal printing, with only stacking and transportation precautions marked and no additional graphic or text printed. In 2023, the use of recycled cartons for packaging and shipment in original boxes reduced the use of new cartons by 72.55%, or reduced CO2 emission by 1,398 tonnes based on a new carton’s carbon footprint.

 

 

There are two causes of the slight increase in the use of new cartons in 2023: 1) For inventory level control reasons, the logistics centers scrapped some sample products that were no longer needed. Most of them were in small electrostatic bags and needed to be put into boxes; 2) Customers placed consolidated orders more often in 2023, resulting in the need to unpack and repackage goods purchased from vendors, and the increase in carton consumption from previous years.

Continuously raising awareness and implementing water conservation measures

Posted on by vicky_yeh@bwnet.com.tw

The water intake at WT’s operating sites are mainly used for circulated water of air conditioners and daily-life water consumed by employees in office and storage areas. The water is entirely sourced from the local water companies (fresh water) where each operating base is located, with no significant impact on water resources and the ecological environment of water source areas.

 

In order to ensure drinking water safety for employees, the water dispenser filters are replaced every month to effectively remove harmful substances in the water. Taiwan SGS is commissioned to regularly test the water every year to ensure safe and healthy water quality. The water consumption is mainly contributed by the evaporation and drift losses from air-conditioners and the water drunken by employees, and there is no effective tool available to measure them. The water discharge is solely made up of water used by employees in the daily life and is discharged into local public sewage systems through the sewage pipes of the building. WT conducts assessments using the World Resources Institute (WRI) Water Risk Atlas and has set a target to reduce water consumption by 1% annually.

 

In 2023, operational locations included in the disclosure inventory were Taiwan, Hong Kong, Korea, and China, with a total water consumption of 21.32 ML, an increase of 8.37 ML compared to 2022, due to the expanded statistical scope.

 

Note 1: The 2023 statistical boundary covers all operational locations in Taiwan, Hong Kong, China, and Korea. Water fees for some offices are included in management fees without separate payment, making it impossible to reasonably calculate actual water consumption. As these represent an extremely small proportion of total water consumption, they are not included.　

Note 2: To implement water resource management, from 2021 onwards, statistics are based on water consumption figures shown on water company bills. For years prior to 2020, consumption was estimated based on water fees and unit prices.

Note 3: Water consumption includes air conditioning water evaporation and employee drinking water needs. As these amounts are not significant and lack reasonable statistical methods, they are not separately tracked. All wastewater is domestic sewage directly discharged from office buildings to domestic sewers without flow measurement capabilities, so water consumption is used to estimate discharge volume for disclosure purposes.

 

 

 

 

To ensure the accuracy of water usage data, the water consumption of the Zhonghe Headquarters in Taiwan for 2022 and 2023 has been verified by BSI Taiwan Branch. The 2023 water consumption was 11.49 ML, an 8% increase compared to the 2022 figure of 10.68 ML. This increase was due to the 2023 cooling tower repairs and updates, which required large amounts of water drainage. WT has been continuously communicating with the building management committee to implement relevant water conservation measures.

 

Note: The verification scope for 2022 and 2023 was the Zhonghe Headquarters office in Taiwan. Water consumption data for 2022 and 2023 was verified by BSI Taiwan Branch in May 2024.

 

 

 

In the future, WT will continue to promote water conservation measures, use water-saving devices, conduct water usage inspections, and regularly promote water conservation information to achieve the goal of zero water waste together with employees.

 

 

 

 

 

 

Continued voluntary purchase of renewables and launch of solar installation plan

Posted on by vicky_yeh@bwnet.com.tw

WT’s total energy consumption was 19,451 GJ in 2023. The biggest source of energy was non-renewable electricity purchased from power companies, accounting for 94.74% of the total consumption. The total electricity consumption was 18,429.11 GJ in 2023, up 18.88% relative to 2022, as a result of the inventory scope expansion to the entire Group. The others were gasoline and diesel consumed by company fleet, totaling 1,022 GJ in 2023. The total energy consumption increased by 16.34% compared with 2022, as the scope was expanded to the entire Group. However, the intensity measured by floor area decreased by 5.12% relative to 2022.

The Taiwan Ministry of Economic Affairs’ plans to achieve 20% renewables in electricity generation matrix by 2025 and the Paris Agreement pursues efforts to keep the temperature rise under control. In response, despite not being a major electricity consumer or carbon emitter subject to prioritized control, WT purchased 10,000 kWh of renewable energy certificates in 2023 to understand Taiwan’s renewable energy procurement process. The renewables make up 0.41% of the consumption in Taiwan, and a 100 KW solar system was installed in the Shanghai offices (completed in Q1 2024) to generate electricity mainly for self-use. WT will continue to conduct feasibility assessments on green power generation, green electricity purchase, and renewable energy certificates, in order to gradually increase the proportion of renewable energy usage.

Training professionals and assisting suppliers towards netzero carbon reduction

Posted on by vicky_yeh@bwnet.com.tw

In 2023, two employees with practical experience in GHG inventory were appointed to participate in the GHG verification professional certification course, which covers standards such as ISO 14064-1, ISO 14067 and PAS 2060. In addition, a number of administrative supervisors attended a series of corporate carbon reduction and net-zero strategic planning courses and all passed the exam and obtained certificates. They became the Group’s internal lecturers to continuously promote GHG inventory and carbon reduction plans. It is scheduled to invite relevant personnel from suppliers for a meeting in 2024 to promote concepts and knowledge related to net-zero carbon reduction for joint efforts towards net-zero.

An inventory of WT and its subsidiaries included in the consolidated reports is 100% developed, earlier than legally required.

Since 2018, WT has been working on GHG inventory with reference to the Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals (ISO 14064-1) and the GHG inventory protocol. The inventory is verified by a third party to assure its accuracy and reliability every year. A complete inventory of all its individual companies was developed in 2022. With 2022 as the base year, WT is committed to reducing Scopes 1 and 2 GHG emissions by 2% every year, and keeping its management policies updated according to the reduction situation.

Base on the result of major indirect emission sources identification, indirect GHG emissions from purchased electricity (Category 2: Capital Goods), upstream transportation and distribution (Category 4) and business Travel (Category 3) were included within the boundaries. In addition, the emissions of all the locations where operate WT’s companies and Taiwan subsidiaries included the consolidated statements were verified by a third-party in accordance with ISO 14064-1

GHG emission reductions target was met again in 2023

In 2023, WT emitted 3152.10 tonnes CO2e (using location-based accounting), or 3,147.15 tonnes CO2e (using marketbased accounting). Third-party verified Scopes 1 and 2 GHG emissions was 1,541.94 tons CO2e, down by 3.49% relative to 2022 (1597.75 tonnes CO2e), meeting the reduction target of 0.0041 tonnes CO2e/NTD million.

Proactively managing climate change to turn crises into opportunities

Posted on by vicky_yeh@bwnet.com.tw

Climate change is an issue that needs the world to face together, no matter who. As a distributor in the semiconductor sector, WT has operating sites, partners, collaborators, and vendors all over the world and they are all subject to impacts of climate change. WT’s management understands the potential impact of climate change on its operations and long-term development. Since 2021, it has been promoting relevant management mechanisms and operations, formulating policies and goals, and investing resources in assessment and research on transition plans. In the future, it will continue to track the achievement of goals, and take a more aggressive course of action accordingly.

氣候變遷治理與架構

The Climate Change Risk Management Task Force convened two meetings since the fourth quarter of 2023, inviting functional and business units to identify risks and opportunities, assess financial impacts, and discuss response plans. The evaluation and planning results will be included in the operational promotion plans of relevant units and reported quarterly to the Risk Management Committee and the Board of Directors as a reference for governance.

Incorporating regular assessments and response strategy development into risk management mechanism

Climate-related risk assessment has been integrated into the existing risk management mechanism and regularly conducted by the Climate Change Risk Management Task Force. WT will continue to follow the climate change risk management process to identify risks and opportunities, evaluate response strategies, and conduct regular internal and external reports.

Scenario analysis of climate change risks
As WT does not operate in a sector with intensive or high carbon emissions, the impact of climate change is mainly on its value chain, including the transition pressure on the vendors and customers, and potential physical risks during the transport. In order to understand the impact of these transitional and physical risks on WT’s operations, WT uses scenario analysis to identify risks and opportunities. The assessment results are used for response plan development by relevant units, and for daily operation adjustment. The Board is briefed on a quarterly basis the GHG inventory and verification schedule planning progress for the parent company and subsidiaries, and requested to determine the guidelines.

Therefore, WT conducts the annual climate change risk assessment based on the SSP5-8.5 scenario for physical risk, the national target scenario for transitional risk, as well as information such as changes in laws and regulations, physical external environment, and issues of concern for sustainability assessments.

A climate change risks review identified three key risks and two opportunities

In 2023, WT reviewed the risks and opportunities identified and ranked in 2021 and selected items that may have an impact in the short term (1 to 3 years) based on the implementation benefits. After understanding their current implementation status, WT re-evaluated the impact scale and financial impact, and identified three key risks that require continued attention and two
major opportunities.

 

Respond to international trends and national goals and formulate three major indicators and goals

In response to international trends and Taiwan’s 2050 net-zero goal, WT set climate change indicators and goals in three aspects: governance and strategy, operations, and GHG reduction.

Being an earth steward and pursuing environmental sustainability

Posted on by vicky_yeh@bwnet.com.tw

Voluntarily raising carbon reduction standards as the world moves towards energy conservation and carbon reduction

WT has been developing a voluntary GHG inventory since 2018. In 2023, it has completed the GHG inventory of all operating locations of all subsidiaries included in the consolidated financial statements with 100% inventory coverage, and will complete a third-party verification of locations where operate WT’s companies and Taiwan subsidiaries included the consolidated statements, with 45% verification coverage, by 2027 at the latest.

Local procurement accounted for 100% of general supplies spending in 2023

As WT purchases products from global IC giants (known as its vendors) to meet customers’ requirement, its management of local procurement issues focuses on general supplies and excludes transactions with the vendors. According to statistics in 2023, procurement from Taiwanese suppliers accounted for 100% of the Taiwan headquarters’ spending on general supplies including office supplies, information equipment, and logistics center procurement, 1.7% up relative to 2022.

 

Purchasing green-labeled products whenever possible and spending NT$16.44 million on green procurement

WT gives priority to green-label products when purchasing general supplies, and has won the Performance Excellence Award for Promoting Green Procurement Plans for Private Enterprises and Groups from the New Taipei City Environmental Protection Department for four consecutive years. The total green procurement spending was NT$16.44 million in the 2023 reports, achieving an annual growth rate of 5% for two consecutive years. A target has been set to reach an annual growth rate of 5% in the coming years. Being a committed green consumer, WT purchases eco-friendly products that are recyclable, causing minimal pollution, and using minimal natural resources whenever possible. For example, a total of NT$10.66 million was spent on purchasing eco-labelled notebook computers from China and overseas.

 

2023年文曄獲頒「新北市綠色消費暨環保志工」績優企業。

In 2023, WT was awarded the Excellent Enterprise of Green Consumption and Environmental Protection Volunteer by New Taipei City.

 

Environmental management spending has been increased over the years

WT has been voluntarily developing GHG inventory for many years. In addition to third party verification, the inventory has been extended to include more operating sites over the years for a more comprehensive scope and a more reliable dataset. Additional environmental management training sessions are also conducted to enhance everyone’s sustainability awareness. In 2023, the Taiwan headquarters spent NT$2.71 million in related management systems, training and activities. See below for courses held in 2023.

 

 

Much attention has been paid to climate change and proactive effort made to protect the environment

WT continues to participate in activities such as community greening, ecological protection, recycling and reuse, and sharing of old objects. Since 2023, it adopts Shimen Baisha Bay, Kite Park, and Laomei Lushicao Beach on the north coast of New Taipei City, and calls on employees to join the Company’s monthly beach cleanups, during which knowledge may be disseminated with increased interactions. Starting from beach cleanups, WT went further to remind employees not to litter, and encourage sorting at office and home, etc. In 2023, a total of 499 person-times participated in the beach clean-ups, removing 2,763 kilograms of debris from the beaches.

In the beginning, employees took their children to the clean-ups out of curiosity. After cleaning different beaches and accomplish various tasks month after month, the participants gradually fell in love with the ocean. They not only regularly attend the monthly clean-ups, but also rise to the debris weight challenges. In addition to the three beaches in Shimen District in New Taipei City, WT will adopt a fourth beach, Chungchiao Shachu Bay, and make some adjustment to the beach clean-up activities in 2024.

 

 

A long-term partnership with like-minded vendors by careful selection and strict control

Posted on by vicky_yeh@bwnet.com.tw

WT has formulated a Supplier Code of Conduct to regulate vendors in five major aspects. In order to continuously optimize vendor management, new vendors of 2023 were required to conduct a six-part self-evaluation of human rights, labor practices, consumers, ethical management, environment, and health and safety. A self-assessment questionnaire was used to analyze a vendor’s current risk level, including its sustainability awareness, whether there are major deficiencies or illegal situations, etc. In addition to Taiwan, the operating sites in China also began to require general vendors to conduct the self-evaluation in 2023.

WT requires new vendors to conduct a self-evaluation of social responsibility, labor practices and environmental protection, fill in the “Supplier Self-Assessment Form” truthfully, and sign back the “Supplier Corporate Social Responsibility Commitment Letter”. The return rate was 100% in 2023. According to the supplier self-assessment, four companies were exposed to high environmental risks, mainly due to lacking specific energy-saving measures (such as using renewable energies, replacing with energy-saving devices and energy-saving awareness measures, etc.). As neither of these four companies was a key vendor, individual communication, energy conservation awareness outreach and other measures were taken to enhance their sustainability awareness. In addition, a vendors assembly and training is being organized for 2024 to promote WT’s sustainability vision, cultivate joint sustainability implementation capabilities, and strive to maximize ESG development benefits through supply chain cooperation.

All vendors (other than vendors) with an annual transaction amount totaling more than NT$ 1 million or more than 12 transactions are subject to an annual assessment. The average evaluation score was 84.07 points in 2023 is 84.07 points, with A-level suppliers (scoring 80 points or more) accounting for 79.7%, up 4.4% relative to 2022. WT will optimize vendors evaluation items and standards to address ESG in a more comprehensive manner in the key vendors assessments.

 

On the occasion of World Earth Day, WT held a beach cleanup event and invited vendors to join and make a difference for the marine environment. To keep the Company’s sustainability commitment in line with its growth, WT will increase sustainability-related activities and training to create more opportunities to engage in sustainability dialogues with vendors.

Tracking vendors’ environmental and social management guidelines

Abiding by key vendors’ code of conduct

Vendors of a certain size always have comprehensive code of conduct in place to ensure that their operations comply with relevant laws and regulations and international standards. In addition, WT continues to track if a vendor complies with the Responsible Business Alliance Code of Conduct (RBA Code of Conduct). As of the end of 2023, 66.67% of the vendors making up 95% of WT’s purchase amounts have passed RBA audits.

 

All the products that WT represents comply with national regulations and standards on substances of concern

Considering the impact of the use of products on users’ health and safety, WT aims to 100% comply with the laws and regulations on substances of concern in the countries required by customers. It keeps a close watch and timely updates the control list accordingly. When a customer requests a list of materials used in a product, WT assists the customer in obtaining relevant lists from the vendors (such as a declaration for non use of prohibited substance, a product composition analysis report, a hazardous substance test report from a third-party testing agency, etc.). All the products sold in 2023 met customers’ chemical management requirements, and the vendors making up 95% of WT’s purchase amounts declared that they comply with relevant chemical management regulations.

In the future, as soon as the bill of materials is create for a finished product on the system, the relevant competent units will be notified to obtain relevant information of the materials from their respective vendors (such as product composition analysis report, hazardous substance testing report from a third-party testing agency, etc.). This could prevent repeatedly processing requests from different customers for the same product and enable timely provision of information.

Tracking and requiring vendors to use materials sourced from 100% conformant smelters as a humanitarian effort

The international community has been concerned about conflict minerals from areas involving human rights abuses. In response, WT released its conflict minerals policies in line with the universal value of a humanitarian supply chain on its official website in 2023, requiring all vendors purchase materials in compliance with international regulations relating to responsible minerals. WT continuously tracks whether vendors’ products contain substances involving conflict minerals, including gold (Au), tantalum (Ta), tin (Sn), tungsten (W), etc. WT keeps updated on information relating to qualified smelters by requiring vendors to provide information based on the Conflict Minerals Reporting Template (CMRT).