The water intake at WT’s operating bases in Taiwan are mainly used for circulated water of air conditioners and daily-life water consumed by employees in office areas. The water is entirely sourced from the local water companies (fresh water) where each operating base is located, and no water is taken from sea water, surface water, ground water or water generated by other organizations. 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. Except for the evaporation and drift losses from air-conditioners, all the water used by employees in the daily life is discharged into local public sewage systems through the sewage pipes of the building. An assessment conducted by WT following the Water Risk Atlas of the World Resources Institute (WRI) found that the operating bases in Taiwan, Hong Kong, and Singapore are not in areas with water stress (high or extremely high).
The water intake was 12.95 million liters (ML) in 2022, an increase of 1.81 ML compared to 2021, mainly due to the inclusion of the Hong Kong logistics center, and the surging number of employees returning to the office from working-from-home after the COVID-19 pandemic peak. As the evaporation and drift losses of circulated water in air-conditioners are impossible to measure effectively, they were ignored as consumption in the reported discharge. The amount of water discharged was also 12.95 ML in 2022, and the water consumption was 0 ML excluding the losses that were impossible to measure. In 2022, the Taiwan headquarters continued to communicate with the management committee of the park where the offices are located to implement relevant water-saving measures.
WT's total energy consumption was 16,271 GJ in 2022, with an increase due to the inclusion of operating bases in China and South Korea in the scope. The biggest source of energy was non-renewable electricity purchased from power companies, accounting for 95.27% of the total consumption, and the others were gasoline and diesel used by company fleet. As of the end of 2022, the non-renewable energy utilization rate was 100%, and no renewable energy has been used. The Shanghai Office is planned to be equipped with solar power generation systems in 2023 to increase the utilization rate of renewables.
The total electricity consumption was 4.3061 MWh in 2022, of which the total electricity consumption in the areas where the GHG emissions inventory was verified (logistics centers in Taiwan, Hong Kong and Singapore) was 3.0889 MWh. The electricity consumption intensity was 76.88 kWh/m², down 0.63% compared to 2021.
As fuel consumption is closely related to the operating activities, the combined energy intensity of gasoline and diesel was therefore measured by revenue. In 2022, the energy intensity of gasoline and diesel was 0.0013 GJ/million NTD-revenue, significantly down 18.75% from 2021.
Note 1:See 6-5 GHG Inventory and Verification Situations for organizational boundaries.
Note 2:In 2022, the operating bases in China, Hong Kong, South Korea, and Singapore were newly-included in the voluntary inventory scope. Due to the nature of electricity consumption in which form the majority of the energy was consumed by WT, the energy consumption intensity was measured by floor area, and the coverage rate of the energy disclose scope was 99.06% in 2022.
Note 3:The electricity data were taken from the electricity bills of each bases, and the gasoline and diesel data were taken from the record on the CPC Electronic Billing and Collection System (EBCS) and the fuel invoices.
Note 5:Thermal conversion factors for fuels were taken from the Annual Energy Report of the Bureau of Energy, Ministry of Economic Affairs, which were 1 liter of motor gasoline = 7,800 kcal, and 1 liter of diesel oil = 8,400 kcal.
Note 6:1 kcal = 4,186 joules
Note 7:The electricity intensity was measured by floor area, see Note 7 for GHG Emissions Intensity; the gasoline and diesel combined intensity was measured by annual revenue, see 2-2 Stable Financial Performance for operating incomes of the years.
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 bases, 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.
The Climate Change Risk Management Task Force has convened three meetings since the fourth quarter of 2022, inviting functional and business units to identify risks and opportunities, assess financial impacts, and discuss response plans. The evaluation and planning results were to be included in the promotion and implementation plan of relevant units, and reported to the Board of Directorsas occasionally to support the governance.
Climate Change Risk and Opportunity Management Process
WT follows the TCFD recommendations, 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.
Daily operations and management were analyzed to support risk assessment.
As WT is not 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 of Directors are 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 RCP 8.5 scenario for physical risk and the national target scenario for transitional risk, information such as changes in laws and regulations, physical external environment, and issues of concern for sustainability assessments.
Climate Change Risks and Opportunities were reviewed.
In 2022, WT reviewed the ranking of risks and opportunities identified in 2021. For implementation benefits, those involving short-time impacts (1-3 years) were re-assessed for current implementation status, impact scale, financial impact, with which three key risks and two major opportunities were identified as requiring continuous attention.
Guidelines in three aspects for the net zero 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.
Carbon reduction efforts were successful with the target met again in 2022.
To address the increasingly serious problem of global warming, WT follows the national overall GHG reduction strategy towards the sustainable development goal of energy conservation and carbon reduction Since 2018, WT has been developing, pursuant to ISO 14064-1:2006 Part 1: Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals, and the Greenhouse Gas Protocol, a comprehensive inventory of GHG Scopes 1 and 2 emissions. The inventory is verified by a third party to assure its accuracy and reliability every year. With 2018 as the base year, WT promised to reduce the intensity of its Scopes 1 and 2 GHG emissions by 1% every year, and keep its management policies updated according to the reduction situation.
In 2022, a GHG Inventory Task Force meeting was convened in accordance with the ISO 14064-1:2018 Greenhouse Gases to identify major indirect emission sources of the year. The meeting resolved that the indirect GHG emissions from purchased electricity (Category 2: Capital Goods) and upstream transportation and distribution (Category 4) were to be included within the boundaries, and the base year changed to 2022 after Hong Kong and Singapore Logistics Centers were included within the organizational boundaries. A higher target was also set and a promise made to reduce the annual GHG emissions by 2% compared to the base year. In 2022, the voluntary inventory was extended to include operating bases in China, Hong Kong, South Korea. A voluntary GHG emissions inventory covering all operating bases of the Group is planned to be completed by 2025, with the third-party verification completed by 2027 at the latest.
In 2022, WT emitted 2,794.05 tonnesCO2e of GHG across areas where the inventory was completed (including operating bases in Taiwan, Hong Kong, Singapore, China and South Korea), of which 1,810.08 tonnesCO2ewas verified by a third party (including Taiwan, Hong Kong and Singapore Logistics Centers). The intensity of Scopes 1 and 2 emissions was 0.0028 tonnesCO2e/NTD million, or 0.0398 tonnesCO2e/m². The target was met with a 27.18% reduction in emissions intensity compared to the base year (2018).
The market is changing constantly with new and different product applications. In response, product design must not only take into account the cost, function and quality of a product, but also the innovation of and solutions with new technologies and materials, as well as the impact of the product on the environment. In addition to maintaining a product portfolio with new technologies and high efficiency, WT also gives priority to assisting customers in adopting systematic solutions that can improve product energy efficiency, and using components containing no harmful substances, so as to meet the requirements of energy saving, carbon reduction, and environmental protection.
Semiconductor components are crucial to electronic products. In alignment with the green design thinking, WT further promotes highly efficient green semiconductor components with reduced energy loss, so that the customers may design and produce from a forward-looking and sustainable perspective environmentally friendly, high quality products with reduced energy consumption and of high energy efficiency .
Highly efficient semiconductor components with low energy loss are promoted to carry out green thinking.
WT Technology represents world-renowned semiconductor vendors, and works with varied customers to meet their demands in R&D, design, manufacturing, and brand marketing. As a bridge between vendors and customers, it has been developing new applications and introducing new solutions to improve the energy efficiency of existing products such as third-generation semiconductors, high-speed computing processors, new-generation high-speed memories, IoT microprocessors, high-performance RF components, 3D sensors, artificial intelligence, and digital power supplies. WT offers electronic components of improved energy efficiency and performance at the same power consumption to be applied in such fields as green energy, alternative fuel vehicles, industrial automation, machine vision, artificial intelligence, cloud and edge computing, data centers, energy storage systems, 5G networks, and long-haul and short-range communications and services, etc.
WT keeps informed of electronic component market development trends, new technologies, solutions and designs, and offers education and training on relevant product applications, so as to work with the customers to achieve forward-looking and sustainable design. To enhance awareness and application of the vendor’s products, a total of as much as NTD 655 millions were spent in research and development in 2022, up 7.61% from 2021.
WT systematically classifies and manages the application fields of the products it sells, so as to always provide customers with optimal services and forward-looking sustainably designed products in a timely manner. In response to the “Reference Guidelines for the Identification of Sustainable Economic Activities” promulgated by the Financial Supervisory Commission in 2022, WT analyzed the application fields of existing products and identified those meet forward-looking economic activities, such as low-carbon transportation technology applications, high-energy-efficiency equipment manufacturing, high-energy-efficiency technology applications, and renewable energy installation, etc. They accounted for 9.86% of the existing products in 2022, with another 33.18% to be determined depending on the actual use by the customers whether they meet the description of forward-looking economic activities. Forward-looking economic activities are an important industry and product development trend for global sustainable development. WT will continue to promote product applications and improve technical development and economic activities related to forward-looking economic activities, with the goal of accounting for 20% of the revenue by 2030.
An advanced electronic system was introduced for paperless inventory management.
WT has logistics centers for receiving and shipping goods in Taiwan, Hong Kong, Shenzhen, Singapore, and South Korea. Purchase orders are placed to the logistics center located the closest to the customer to keep warehouse transfer and delivery distances short. All logistics center operations are processed through paperless electronic procedures on an advanced logistics information system. With Wi-fi network accessible from every corner of the logistics center, PDAs are used to scan product and storage placement barcodes upon slotting, picking, and relocation for a real-time update of relevant accounts and stock location on the system. Stock cards are no longer needed for record keeping. An automated warehousing system is scheduled to be introduced to the Singapore logistics center in 2023 to further optimize the management of receiving, shipment and warehousing.
All logistics center operations are processed through paperless electronic procedures on an advanced logistics information system, which is used to optimize the number of freight trips, and consolidate shipment orders to minimize transportation batches and carbon mileage. In 2022, 290,767 orders were consolidated at the five logistics centers, reducing the number of bills of lading by 64.91%. Among them, the Shenzhen logistics center serves a relatively small number of customers and thus has difficulties in consolidating shipment orders.
Shipment Consolidation and electronic procedures greatly reduced paper consumption.
With an operating strategy of digital optimization, the paper-based operations have been replaced and PDAs are now used to scan product and storage placement barcodes upon slotting, picking, relocation and shipping for warehousing management procedures in the five WT logistic centers.
Less packaging, more recycling
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 filling materials, and always using renewable packaging materials for logistics operations. In addition, nothing but the necessary stacking and transportation precautions are to be printed on the cartons purchased by WT.
Products received from the vendors will be warehoused in the original packages if repackaging is not planned for shipment. If repackaging is necessary, all the removed original cartons and filling materials will be collected for reuse, and classified as “environmentally friendly cartons” for statistics and management purposes. 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.
Taiwan and Hong Kong began to be kept track of for the usage of filling materials (in meters) in 2020. An average of 0.19 meters of filling materials were used per cartons in 2022, decreasing sharply by 48.65% from 2020.
Investing in solar plant developer and serving as a representative director
WT invested NTD12.5 million in Daypower Co., Ltd. in April 2023. WT owns 10% shares of Daypower and serves as a representative director. Daypower is a solar plant developer and completed 5.05 MW installation in 2023. Self-held solar plant reached 2.34 MW installation accumulatively in 2023, which generated 2.9 million kwh in 2023, equaling to 1,435 ton CO2 reduction.
In recent years, the proportion of purchases from the top 20 suppliers of WT’s revenue has reached more than 90% of the total group’s purchase amount. The relevant supplier management is also mainly focused on the top 20 suppliers. Considering WT as an agent channel in the supply chain, the three main management goals for the supplier environmental and social policy management are to implement supplier code of conduct, chemical management, and responsible minerals.
Implementation of Supplier Code of Conduct
WT has a code of conduct that governs its own operations and business relationships with suppliers, to ensure that all operations comply with applicable laws and international business ethics standards. WT’s major supplier are also required by their end-customers to comply with the Code of Conduct of the Responsible Business Alliance (RBA), which covers the aspects of ethics, human rights, environment, safety, and management systems. In addition, 18 of WT’s top 20 suppliers have passed RBA audits in 2022, strengthening the credibility of compliance results through third-party audits.
100% of the top 20 supplier are in compliance with chemical management regulations.
WT is always aware of the latest updates to chemical use regulations in various countries. Based on customer needs, we actively require suppliers to provide international regulatory declarations and relevant documents for individual product needs to ensure compliance with regulations and industry standards. Currently, the regulations included in the management include the EU Restriction of Hazardous Substances Directive (EU RoHS), the EU Chemicals Registration, Evaluation, Authorization, and Restriction Act (EU REACH), the US Toxic Substances Control Act (TSCA), the Chinese Administrative Measure on the Control of Pollution Caused by Electronic Information Products (China RoHS) and the California Proposition 65 (Prop 65).
In the future, we will establish an e-based management process. During product filing, the relevant departments will obtain relevant chemical management documents for individual products from suppliers in the process (such as non-use of banned substances guarantee certificates, electronic component composition analysis reports, and hazardous substance test reports from third-party testing organizations). A document update verification mechanism will also be established to ensure that customers can obtain chemical management documents that meet the current status of the product when purchasing the product.
In response to customer requests to not purchase products containing conflict minerals, such as tin, tantalum, tungsten, and gold, from human rights-disputed areas such as mines in the Democratic Republic of the Congo and surrounding countries, WT regularly reviews our supplier’s conflict minerals policies to confirm that they continue to meet responsible minerals requirements.
In addition, to ensure that direct or indirect procurement sources do not contain conflict minerals, WT will gradually promote and implement traceability management for the above metals procurement from suppliers, following the Responsible Minerals Initiative (RMI). Through RMI’s annual updates to the results of each smelter’s assessment and the version of the Conflict-Free Smelter Responsibility Tracking (CMRT) document, WT will gradually expand its request for CMRTs from suppliers to verify smelter source information in the supply chain, in order to achieve the goal of implementing the responsible minerals policy. In 2022, 18 of WT’s top 20 suppliers disclosed their compliance with the conflict-free minerals policy on their websites, while the other two disclosed their responsible minerals policies in their sustainability reports.
Local procurement accounted for 98.3% of general supplies spending.
As WT’s vendors are global IC giants, its management of local procurement issues focuses on general supplies and excludes transactions with the vendors. According to statistics in 2022, procurement from Taiwanese suppliers accounted for 98.3% of the Taiwan headquarters’ spending on general supplies including office supplies, information equipment, and logistics center procurement, 1.5% up from the previous year.
The Taiwan Financial Supervisory Commission (FSC) released the Roadmap for the Sustainable Development of Listed Companies in March 2022. However, WT has already begun GHG inventory development as early as 2018 and voluntarily extended the boundaries. In 2022, the external GHG inventory verification scope has been extended to include operating bases such as Hong Kong and Singapore logistics centers. In 2022, the GHG inventory of operating bases such as China, Hong Kong, South Korea, and Singapore was also be voluntarily completed (without third-party verification). In 2023, the GHG inventory will be further extended to more operating bases and verified by a third party. The GHG inventory of all the Group’s operating bases estimated to complete in 2025, with third-party verification to be completed by 2027 at the latest.
Environmental management spending has been increased over the years.
In order to fulfill its responsibility for environmental sustainability, WT’s Taiwan and Hong Kong Logistics Centers have both been certified with ISO 14001: Environmental Management System (see 6-8 for details of the effective date for the management system), and have been developing GHG inventory for many years. In addition to third party verification, the inventory has been extended to include more operating bases over the years for a more precise and accurate information disclosure. Additional environmental management training sessions have also been conducted across departments to enhance sustainable development awareness for all employees and promote reduction programs. In 2022, training on SASB sustainability accounting, TCFD risk management and others were introduced, and the Taiwan headquarters invested NT$3.23 million in environmental-oriented management systems, training, and related activities. In addition, a total of 208 hours of training on environmental management and goal implementation were delivered at Taiwan, Hong Kong, and Shenzhen Logistics Centers in 2022.
Much attention has been paid to climate change in response to UN SDGs
In 2015, the United Nations formulated the 17 Sustainable Development Goals (SDGs) in hope that the collective attention of countries around the world to climate change will help stakeholders identify climate change-related risks and opportunities. In line with the international trend, WT has been improving environment-oriented development.
Increased proportion of renewable energy use
In response to the Taiwan Ministry of Economic Affairs’ plan to achieve 20% renewables in electricity generation matrix by 2025 and the Paris Agreement’s goal to keep the temperature rise under control, despite not being a major electricity consumer or carbon emitter which is subject prioritized control, WT voluntarily planed and invested RMB 1.428 million to set up a 100 KW solar power generation system on the roof of the Shanghai office. The system generates about 9,000 kWh of electricity per month, and the power generated is mainly for self-use. WT will continue to conduct feasibility assessments on future green energy power generation, voluntary purchase of green electricity, and renewable energy certificates, in order to adopt green energy solutions that are most beneficial to the environment, gradually increase the proportion of renewable energy usage, and reduce WT’s GHG emissions.
NTD 15.66million were spent on purchasing green-labeled products in 2022
WT, as an IC distributor, mainly works in electronic components trading and research and development. Although the trade does not involve manufacturing or significant environmental pollution, WT has been making efforts with it suppliers to develop and apply green technologies, and mitigate the concerns about exhaustion of energy sources. WT is committed to purchase green-labeled products whenever possible. It has been filing its green procurement under the guidance of the New Taipei City Environmental Protection Bureau every year, and recognized for three consecutive years in the “New Taipei City Private Enterprises and Organizations Green Procurement Excellence Awards Ceremony”. The amount declared at the end of 2022 was NTD15.66 million, up 5% from the previous year. In the future, WT will continue to purchase green products whenever possible as an effort towards green consumption, choose products that cause less harm to the environment and human health, and give preference to products with the Environmental Protection Label, Energy-saving Label, Green Building Material Label, Water-saving Label, Category II Environmental Protection Label, Carbon Footprint Reduction Label which the Taiwan Environmental Protection Agency urges the private sector to choose.
WT was awarded the Excellent Enterprise of Green Consumption and Environmental Protection Volunteer by New Taipei City (Fourth from left: WT Associate Manager CHEN Yung-Ling)
WT continues to advocate the spirit of environmental sustainability, and participate in activities such as community greening, ecological protection, recycling and reuse, and sharing of old objects. In order to shape a sustainable environment, it also adoptedbeach cleanup areas, and has been urging the employees to participate in beach cleanups and tree planting activities.
The protection of environmental resources has always been an issue that the world attaches great importance to. In addition to reducing the source of pollution at all levels, the disposal of garbage is crucial as well. A lot of garbage discarded in the ocean are brought up to the shore by waves, and over time, the beautiful coast became filled with all kinds of garbage, among which dead marine creatures. In 2022, two beach cleanups were organized, where 137 participants removed a total of 1,484.2 kilograms of marine debris. Since 2023, WT adopted Shimen Baisha Bay, Kite Park, and Laomei Lushicao Beach on the north coast of New Taipei City and organized beach cleanups on a monthly basis, during which knowledge may be disseminated with increased interactions. Starting from beach cleanups, WT went further to advocate effective waste treatment, remind individuals not to litter, and encourage sorting at office or home , etc.
With the successful hiking in 2022, a series of Gathering For Fun activities will be held in conjunction with beach cleanups in 2023. In addition to the beach cleanups for public interest, employees are encouraged to go hiking for their own heath. Employees may enjoy the beauty of the mountains in northern Taiwan and breathing in energy-boosting phytoncides with their families. Moreover, the participants were invited to progress through a number of challenges intended for them to better understand the background stories of each peak and each trail, so as to enhance their knowledge and physical fitness at the same time.
The much-awaited company outings will resume in 2023, after being suspended during the COVID-19 pandemic. Much has been asked about the outings, as the itineraries have been distinctive and employees are invited to come with their families, whose expenses are also subsidized. The outings are designed to offer an in-depth understanding of local cultures, exclusive attractions, seasonal food, etc. of various places in Taiwan, and a variety of interactive games and experiences are incorporated to the program for ice breaking and team building.
Employees are offered a variety of itineraries in different styles, including parent-child experiences, amusement parks, extreme challenges, and sightseeing trips, to choose from according to their interests and whether they come alone or with families. For example, rafting trips that would fit energetic young groups, and parent-child itineraries that would be suitable for family outings. The latter would feature fun attractions that parents can enjoy with their young children and DIY activities that attract all ages. During the day, parents can exchange parenting information with each other, and children meet new friends and have fun together.
With the successful hiking in 2022, a series of Gathering For Fun activities will be held in conjunction with the monthly cleanups at different beaches on the north coast in 2023.
Waste has been sorted and recycled and packaging materials reused.
WT is committed to waste reduction and recycling from the source, and selects qualified suppliers to properly dispose the waste. The waste produced during WT’s operation is mainly made up of operational waste and daily-life waste discarded by employees in the offices, and cartons, paper boards, filling materials and waste left from carton sealing at the logistics centers. They are all non-hazardous waste.
In order to reduce the amount of waste generated at logistics centers, the packaging materials required for logistics operations, such as cartons, cardboard boxes, paper boards, etc., are actively cut down from the source. At receiving, empty cartons are recycled and to be reused for shipping packaging; and for shipping, either reusable or bio-degradable recycled materials are used for packaging. WT has a centralized waste management system, and keeps a regular record of waste quantity and waste transport data.
In order to achieve the goal of reducing the amount of waste, efforts have also been made in daily office management to buy less disposable consumer goods, use durable and recyclable products whenever possible, enhance employee education campaign on waste reduction and carbon reduction, and engage in waste sorting and recycling. As of the end of 2022, those wastes sent to the waste treatment facilities were all non-hazardous, those diverted from disposal were to be recycled and prepared for reuse only, and thosedirected to disposal were to be incinerated (with energy recovery) only. No waste was land-filled.
In 2022, the Hong Kong and Singapore logistics centers began to be kept track of for waste. A total of 101.2 metric tons of waste were incinerated (with energy recovery) in Taiwan, a decrease of 17.1 metric tons from 2021. The results show a year-on-year reduction in daily-life waste, and represent an achievement of WT’s continuous efforts in environmental protection.
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.
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.
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.
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.
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.
