Category: Environmental

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

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

Posted on by janis_wu@bwnet.com.tw

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

 

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

Criteria for screening and evaluating suppliers

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

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

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

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

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

 

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

 

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

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

ISO14064 Greenhouse Gas Statement

Save Energy with Green Purchasing

Posted on by janis_wu@bwnet.com.tw

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

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

4:Calorific value conversion coefficients for each energy source: The source is the calorific value table of energy products in the annual report of the Bureau of Energy Statistics, Ministry of Economic Affairs. 1 liter of motor gasoline = 7,800 kcal, 1 liter of diesel = 8,400 kcal
5:1 kcal = 4,186 joules
6:The denominator used for electricity intensity is floor area, please refer to Note 7 for greenhouse gas emission intensity; the denominator used for gasoline and diesel intensity is annual revenue, please refer to 3-2 Financial Performance for historical operating revenue.

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

Posted on by janis_wu@bwnet.com.tw

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

 

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

 

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

Increasing the proportion of renewable energy use

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

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

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

Concerns about climate change and responses to international trends

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

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

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

Sort and recycle waste. Reuse packaging materials

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

 

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

Prevention management, develop improved security measures

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

Promote TCFD project to initiate climate change management

Posted on by janis_wu@bwnet.com.tw

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

 

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

 

Summarize the 21 possible risk items. Promote corresponding solutions.

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

 

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

Congratulations on reaching the emission reduction target by 2021!

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

 

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

19.04% carbon reduction achieved in four years

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

Energy Saving Re-Advancement Measures for 2022

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

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

Posted on by janis_wu@bwnet.com.tw

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

 

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

 

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

 

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

 

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

Advanced electronic system for comprehensive implementation paperless inventory management

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

Not only packaging reduction, but also recycling

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

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