Proactively managing climate change to turn crises into opportunities

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

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

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).

Embracing Clean Technology, Journeying Towards a Sustainable New World

Semiconductors is a catalysts of modern life, industry, and economic activities, drive the development of new technologies and applications in various fields.

WT Technology, serve as a distributor, for world-renowned semiconductor suppliers. As promoter of clean technology, we act as intermediaries between suppliers and clients, offering product services in the realm of clean technology. and a bridge between vendors and customers. We pioneer applications for clean technology products, continually integrating innovative solutions, not only enhancing the energy efficiency of existing products but also furnishing new designs and comprehensive clean technology solutions.

Complete Platform Leverage to provide one-stop platform Semiconductors is

WT will persist in delivering three core competency: platform leverage and integration for suppliers, comprehensive technical services and solution proposals. We are unifying the latest clean products and applications from various suppliers to offer a one-stop platform, as the best partner for customers in clean technology development strategies.

Helping industries achieve Net-Zero emissions

WT promotes industry-university cooperation

Over the years, WT has continued to invest resources and provide various types of technical services to establish a strategic partnership with vendors and customers, assist customers in promptly proposing solutions, and become a technology platform providing high-quality products and best solutions in many fields.

Combining energy-saving technologies to promote Artificial intelligence applications

Generative AI is another emerging application that changes people’s economic, work, study, and life patterns in today’s society. In response to the need to process large amounts of data and calculations, WT assists its customers in adopting AIpowered microcontrollers (MCUs) and microprocessors (MPU) as system core. These new cores are more intelligent, and have the benefits of lower power consumption, safer services and longer product life cycles.

The continuous introduction of AI large language models (LLM) leads to constant increase in model usage parameters. Accordingly, high-bandwidth memory (HBM) and high-efficiency power management products are crucial to product performance and energy consumption. WT has been working with its vendors and customers in these two fields to develop and offer advanced energy-efficient products to meet market needs.

 

 

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.

No work-related accidents for 4 consecutive years as protecting employees and preventing hazards are the highest principles

WT adheres to the occupational safety and health (OSH) policy of “protecting employees and preventing hazards”. It put in place an OSH system pursuant to the provisions of the Occupational Safety and Health Law, and appoints OSH managers, fire protection administrators, first-aid personnel, etc. In addition, an OSH Committee was established in accordance with the laws and regulations with members including OSH managers, heads of departments, supervisors, command personnel, OSH-related technical personnel, medical personnel engaged in labor health services, and labor representatives. The employee representatives account for 30% of the Committee members, and four meetings in total were held in 2023. Regular analyses are performed with Plan-Do-Check-Act (PDCA) iterative process to identify potential risks and possible hazards in the work environment. The work safety operation flow chart is reviewed for hazard causes, in order to identify and prevent possible hazards so as to achieve the goal of zero disasters.

 

Preventing disasters by strengthening employees response

Pursuant to fire protection laws and regulations, WT’s major operating bases in Taiwan, Shenzhen, Beijing, and Shanghai has installed adequate protective facilities in the workplace, divided fire prevention management into zones, and appointed responsible employees on each floor to conduct a periodic key-point inspection every month to prevent accidents from happening. Relevant persons are sent to participate in the fire drill and training held by the management committee every year to be informed of the Park’s emergency exit and evacuation plan. A third-party fire protection institute is commissioned to carry out maintenance and reporting, and a fire protection job assignment and drill is organized in March and July every year to strengthen all employees’ emergency evacuation and response capabilities. Dedicated personnel are assigned to perform nights patrol and safety inspections and ensure that unnecessary power supplies and lighting in the offices are turned off at night.

Strict assessment to comply with safety and fire regulations

Before construction starts, WT always conducts a complete safety assessment, requires the signing of a safety and health commitment letter, and plans emergency exit routes instructions and indicators, fire protection facilities, surveillance equipment, fire and security alarm systems. User license will not be issued until all the specifications are met.

 

Refresher training to improve employee safety training

In order to ensure that all employees are familiar with OSH laws and regulations and the company’s safety and health management mechanism, WT Taiwan regularly conducts safety-related training and drills. Refresher training is scheduled for OSH managers, fire protection administrators, and first-aid personnel in accordance with the laws and regulations. A total of 6 individuals have completed the first aid refresher training in 2023.

 

0 workplace injuries across the Group, demonstrating a safe workplace and employee safety awareness

In 2023, no disabling injuries were reported from any of WT’s operating bases. Therefore, the occupational injury deaths, disabling injuries, total case incident rate (TRIR), and lost time injury rate (LTIR) were all zero. No work-related deaths or injuries were reported in 2023 among suppliers and contractors who worked in WT’s offices or logistics centers either, with thus 0 TRIR and LTIR.

 

Organizing various activities to improve employees’ physical, mental and spiritual health

WT has various clubs, which offer exclusive courses and activities for their members, as well as a wide range of activities with different themes, large and small, for all employees to join. A variety of public-interest activities are organized to advocate environmental protection and social care, during which employees may relax and have fun through meaningful club activities, and build positive family and parent-child relationships. The club general assembly held at the beginning of each year allow new employees to explore and choose their favorite clubs to join. The Company makes continuous efforts to seek breakthroughs and set up more different types of clubs for a diversified all-round development, so the members may encourage and support each other to complete a competition, and exchange health and sports information. Club members participate in static activities to relax their bodies and minds, or dynamic activities to sweat and get naturally high. The Company not only provides subsidies and promotes the clubs, but also encourage employees’ engagement, so as to make sports and hobbies one of its pillars.

Actively promoting club activities for team building

Golf Club, a newly-formed club

The Golf Club was officially launched in 2023. With the subsidy and support from the Company, employees who would otherwise not have the opportunity to play golf could join one of the Club’s Tuesday after-hour sessions at golf course and get a hands-on experience. Once becoming a formal member, they would have access to professional instruction. Seasoned players of the Club are happy to teach beginners and make golf become a fashionable, elegant and accessible leisure sport in WT. The Club will enter formal operation in 2024, and be involved in organizing monthly the employee cup competitions, the WT Microelectronics Invitationals, and occasional friendly rounds with suppliers and customers. Through the Club, employees will be inspired and motivated to play a new sport.

 

 

Pushing boundaries with The Fun Run Club and Mountain climbing Club

The Fun Run Club participated in five marathons in 2023, including Dahu Strawberry Culture Carnival Marathon, Matsu Beigan Hard Ultra Marathon, Marie Claire Pink Run, New Taipei City OSH Cup Road Race, and Banqiao Marathon Road Race. This year, a series of training courses were organized according to individual runner’s physical fitness, road running experience and personal health status. Road race participants were given advice on distance and terrain that match their training intensity, so that even first-timers could complete the event healthily and safely within their own limits.

After the competition, sharing sessions were organized where participants can share the problems and interesting stories they encountered during the event. Setting off in the early hours of the morning, running enthusiastically despite heavy rain, and facing scorching sun and sandstorms could not deter their determination to cross the finish line. Engaging in proper sports activities can effectively improve physical, mental, and spiritual health, embodying the true essence of the Company’s continuous efforts to promote various sports.

The managers of the mountain climbing club include members with professional mountain climbing licenses and extensive climbing experiences. They lead the members to visit various beautiful mountain landscapes. Besides difficult mountain climbing events, easier hiking schedules have been planned for families. In 2024, we plan to organize mountain camping trips to explore the visual impact of starry nights in areas with low light pollution in the mountains. We aim to experience awakening in the morning amidst the sounds of insects and birds, and enjoy the comfort of light mist, morning dew, and dawn, which will undoubtedly bring another level of physical and mental well-being to our employees.

 

Making friends in the Basketball Club and Badminton Club and having the first WT Cup

The Badminton Club and basketball competitions were organized for team-building and fun. The Company provides prize money, trophies, medals, a venue and facilities to create an authentic competition atmosphere. The cheering group composed of employees and their families also lift up the players’ spirits and give them a sense of formal game. Families and friends are invited to participate in weekend events so as to spread health awareness and inspire more to engage in sports.

Customers and vendors are invited to register and make friends on the court to celebrate the shared love for sports and forget about the stress from work. Ball game competitions were promoted since the Basketball Club’s “WT Microelectronics Cup Invitational” in 2023. Invitation was widely sent out to partner companies for the round-robin tournament. Adjustment was made to the format and scale of the friendly matches to diversify WT’s effort to promote healthy sports and expand the employees’ social circle as well as knowledge. A total of 5 teams participated in the four-week tournament, which not only saw the original objective of meeting friends through basketball achieved, but also sew the seeds for more invitational tournament in the future.

 

Calming the soul and nourishing the body with The Floral Art Club and Cooking Club

The Floral Art Club organizes flower art courses periodically. The course contents include knowledge on various plants and bonsais. This is used to promote the important role of green plants in slowing down global warming and effectively enhance the green atmosphere in the office. Green living starts from all angles. The vases allow employees to bring their own pots for re-decoration, which not only breathes new life into the pots, but also allows the concept of recycling to be implemented indefinitely. The “New Year Flower and Rice Screen Hanging Decoration” course is held in conjunction with the New Year holiday. It combines traditional rice screens with seasonal flowers to create festive decorations, adding a different embellishment to home decorations during the Lunar New Year. In response to the Chinese Valentine’s Day “Flowers and Words” course, fresh flowers are paired with round glass pots and displayed through a layered circular perspective to enhance a different experience of beauty for employees.

The Cooking Club continues to align its course arrangements with the theme of enjoying health through vegetarianism, starting with healthy low-carbon diets. It promotes healthy eating among employees by encouraging the use of seasonal local ingredients and striving to consume a diverse range of whole foods as much as possible. In our busy daily lives, we often overlook the importance of a balanced diet. Imbalanced nutrition in meals can also increase health risks among employees. Starting from 2023, we are implementing activities promoting low-sugar and lowsodium diets. We focus on ingredient selection, seasoning combinations, and basic cooking techniques, aiming to make healthy eating effortless and balanced nutrient intake the top priority.

 

 

Continue applying for the Sports Enterprise Certification Review and the CHR Healthy Citizen Enterprise Initiative in 2024

In 2024, WT will apply for a renewal of the the Sports Enterprise Certification Review by Taiwan’s Sports Administration of the Ministry of Education it received in 2021. The Certification is valid for three years. WT joined the CHR Healthy Citizen Enterprise Initiative in 2023, and will undergo a CHR evaluation conducted by the Health Magazine in 2024. We are doing our best to take full care of the employees’ physical, mental and spiritual well-being, and expect the third-party review advise areas where we could do better and more for our employees.

Eating well to live well

Selected fresh delicious drinks without safety concerns are provided. Coffees are prepared with top Swiss automatic coffee machines using carefully selected quality coffee beans that have passed SGS toxin tests. Tea drinks are brewed from organic tea from a non-toxic natural farming plantation in Ruisui, Hualien. High-quality fresh milk drinks certified with FSSC 22000 Food Safety Management System are strictly checked for impurities and expiration date upon arrival to ensure that employees enjoy the safest and healthiest fresh milk.

On the weekly Fruit Day, healthy and safe fresh fruits from our small long-term partner farmers in central Taiwan are offered to the employees. The direct fruit procurement from the place of origin improve the farmers’ income, so that they can focus on growing healthier and more delicious fruits, reduce the use of pesticides and allow the land rest. Direct delivery from the place of origin also reduces food carbon footprint. While the fruits are distributed, their grower’s story is told and words shared. The transparent production and marketing creates an emotional bond between employees and the fruits in their hands. In China, fresh fruits are locally sourced to promote a balanced diet with more fruit consumption.

 

WT is committed to advocating the importance of balanced meals and breakfast. Breakfast bar events and vegetable lunch boxes are organized in the Taiwan headquarters, while healthy and balanced breakfasts are also provided every Monday in the offices across 28 cites in China. With the concept of “eat less meat and more vegetables; reduce carbon and increase health”, a plant-based food campaign was launched to promote awareness of a low carbon diet and serve the purpose of energy saving, carbon reduction, health enhancement, and physical burden alleviation. According to the International Meatless Day, one meatless meal reduces 760 grams of CO2 emission. At that rate, the carbon-reducing vegetable meal events in Taiwan, with the participation of 3,479 person-times, reduced approximately 2.644 tonnes of CO2e emission, which would be equivalent to planting five camphor trees with a diameter of 47 centimeters at breast height and a height of about 11 meters. Only by promoting plant-based food more proactively can carbon reduction become an important part of daily life.

 

 

Cultivating multicultural literacy

Promoting the habit of reading to stimulate brain and pursuit of knowledge

The WT Microelectronics Book Club aims to promote the habit of reading. It adds new books in different fields every month to expand the knowledge of the employees. The Book Club allows the employees to improve their cultural qualities, adjust their body and mind, and expand their relevant knowledge during their spare time. A spacious, bright, and comfortable space has been established in the Company, which provide coffee and other drinks. Employees can take a break from their work, have a coffee, read a magazine, and clear their minds in this leisurely space.

 

Continued support for arts, cultural events, and social sharing

For the second year, WT provides tickets for the World Citizen Academy and Concert and the children’s choir “Nice Voice” concert. WT also promotes concerts with charity groups to enhance the cultivation of artistic and literary qualities among employees, increase their time with family and friends, and allow those who support the arts and social sharing to keep pace with the times. For the 30th anniversary events, the special exhibition features a quiz with prizes, which includes tickets to the “RE: Paul Chiang – Meditating Algorithm: Immersive in the life and works of Paul Chiang” by the renowned artist Paul Chiang in 2023. The exhibition tickets were well received by our employees. We plan to provide more high-quality, extensive, and diverse exhibition tickets in 2024 to promote art and culture.

 

Team-building activities to develop bonds

Department team cohesion training courses are held every year in Taiwan and provide various types of team motivation activities for employees to sign up for. The diverse activities include fun activities, handcrafting and printing courses to inspire creativity, enhance concentration and emotional communication, and achieve the goal in the process.

Communicate and coordinate, solve problems, stimulate creativity, enhance morale, and acquire new interests and knowledge. In 2023, Shenzhen, Beijing, Shanghai, Hangzhou, and Xiamen in China will also successively organize this activity, making the team’s tacit understanding training more comprehensive and regional.

 

Happy holidays and lots of happiness with prizes and gifts

In addition to issuing annual bonuses on specific holidays every year to keep employees happy during the holiday, a garden party called “Rice Dumplings for the Dragon Boat Festival” is held during the Dragon Boat Festival to prepare various flavors of meat dumplings and traditional snacks for employees to feast on. Vintage mini-games evoked everyone’s childhood memories. Walking into the event venue was like walking into a time capsule, and the scene and atmosphere felt like the early days of Taiwan. During the Mid-Autumn Festival, we held the “WT Microelectronics 30 Mid-Autumn Festival Celebration”, which included the Wugang Woodcutting Fun event to inspire teamwork and participation by both male and female employees. There were also activities like “Stack the Pomelo”, which required good hand-eye coordination, and the kombucha DIY experience course. After the course, employees continued to cultivate Scoby yeast and shared it with others, which was also an effective way to promote healthy eating habits.

During the Lunar New Year, we held the “WT Microelectronics 30 Celebrating the New Year of the Dragon” New Year activities. It included lantern art painting activities. Employees who completed the lantern painting received exquisite New Year gift boxes, and the lanterns carefully created by the employees were also hung at the New Year’s garden party, which greatly enhanced the sense of participation and livened the New Year atmosphere of the garden party. At the New Year’s Garden Party offered various of dessert and the interesting missions to collect points. The most talked-about activities were the “Lucky Red Envelope Lucky Lottery” and the DIY red envelope silk printing. The Lucky Red Envelope Lucky Lottery offered various prizes such as smart home appliances, electronics, lifestyle items, New Year’s goods, and charitable items. The DIY red envelope silk printing included templates specially designed for the 30th anniversary of the Company, allowing employees to personally create their own Lunar New Year red envelopes. From the event, we could feel the joy and Lunar New Year atmosphere. Also, employees received a healthy traditional oil gift box from Beigang, Yunlin.

Starting from 2023, the China region will successively launch celebration activities for various festivals. For the Dragon Boat Festival, Chinese Valentine’s Day, and the 38th Goddess’ Day, exquisite and healthy afternoon teas will be arranged for employees to share the benefits of the festival through afternoon tea time after work. Not only that, but also with the festive paper fan DIY and “Everything is covered – lunch time”, supervisors personally wash their hands and make soup, so that employees can enjoy the sincerity from supervisors, and a bowl of noodles is full of emotional inheritance and warm-hearted care, effectively shortening the distance between supervisors and employees, eliminating the barriers between each other, and truly realizing the original concept of WT’s big family.

 

Employee one-day trips to restart and make a strong comeback

Employee one-day trips resumed in 2023, after being suspended during the COVID-19 pandemic. 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, extreme challenges, and scenic tours 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. There are also itineraries featuring top destinations for influencer content. Efforts were made to ensure every package contains something interesting for every age group. In 2023, a total of 1,188 employees and their family members participated in the 18 travel routes.

Short hotel trips will be launched in 2024, including well-known hotels in the different counties and cities in Taiwan, with green hotels as the priority to actively promote green tourism and for employees to bring their own toiletries to reduce the use and waste of disposable toiletries, further limiting the generation of waste.

 

Volunteers roll up their sleeves and work side by side with farmers

As Taiwan’s agricultural workforce ages, the number of people engaged in farming has been declining year by year. While many farmers have the ability to cultivate crops, there is a shortage of manpower during harvest. Additionally, Taiwan’s unpredictable weather often results in damage to fruits and vegetables that are not harvested in time. The 2023 agricultural volunteer activities continued to encouraged employees to go outdoors in a healthy way, while also rolling up their sleeves and working on farms. The activity mainly provides field assistance to small farmers in remote rural areas in Taiwan. It not only allows farmers to feel at ease, but also allows employees to acquire agricultural knowledge and practice good deeds. A total of 138 people participated in the activities. In 2024, we will continue the Love for Farms project. In addition to continuing to order fruits from small farmers, we will further plan activities to venture into the fields in the south. This will allow employees and their families to work side by side with farmers.

Promoting five major strategies to improve employee health

A series of Pick Up and Go activities combined exercises and environmental protection

WT has multipurpose classroom, and organizes various sports courses to encourage employees to develop good exercise habits, and enhances their awareness of self-health management. In 2023, the Shanghai, Shenzhen, and Beijing offices in China continued to engage professional instructor to lead yoga classes, so that employees can strengthen their bodies and relax their bodies and minds under correct guidance. A common hobby may lead to a common health and beauty.

The employees were encouraged to bring their families with them to experience the mountains in northern Taiwan. A series of interactive games were incorporated into the program, and the background stories of each peak and trail explained by guides. A total of 1,022 person-times participated in the ten walks in 2023. Through observation and feedback from employees, it can be seen that the walk did not pose a challenge to the participants. They unanimously agreed that the walks could be more strenuous. Therefore, the future walks will be more challenging, or walks of different levels of challenge will be offered to suit different age groups and physical conditions.

In 2024, it is planned to plan a series of “Health Passport” activities with a higher intensity of health activities. The activities include the adoption of Shimen Baisha Bay, Laomei Lvshitao Beach, Kite Park Beach and Zhongjiao Sand Beads on the north coast of New Taipei City. Beach cleaning activities in the bay, hiking and hiking with different levels of difficulty, and physical training tasks that can be completed at home. employees can choose fitness tasks that suit them based on their own health and physical condition, and strengthen the observation of individual sports conditions. When implementing weekly health exercise video feedback, we will pay more attention to employees’ exercise postures and physical condition reactions after exercise. This will be coupled with quarterly consultation services from physical therapists starting in 2023, so that employees can learn more about health while exercising. What sports are suitable for you?

Listen to employees’ needs and organize diversified customized lectures

Over the years, we have continued to actively promote health promotion activities. We analyze health examination data every year to understand the health problems of employees, and combine it with the lecture satisfaction questionnaire of the previous year to understand employees’ feelings and needs. In addition to arranging corresponding health education topics In addition, it also conforms to the promotion content of the four major plans. In 2023, family education lectures and health lectures will be held in Taiwan and China, with the themes of “Parent-Child Relationship – 3C Parenting Battle”, “Intergenerational Relationship – Long-term Care Resources, Use This Way”, “Love Relationship – Love Code – After the Conflict” , love each other more”, “Health checkup big data analysis”, “Sliding disc training” “Elastic band training”, “Female theme-prevention and treatment of breast cancer”, “Male theme-prevention and health care of major diseases (lung cancer, myocardial infarction, prostate )”, the lecture content not only explained information, but also provided practical exercises for daily life applications. Employees gave positive feedback and recognition after the meeting.

Encourage regular health checkups and provide multiple health checkup plans

WT currently has a full-time health manager in Taiwan to plan and promote employee health management. In addition to providing health checkup consultation and advice to employees, doctors are also invited to the company every month for medical consultation services. Employees are entitled to a health checkup expense subsidy once every year, which is better than required by the laws and regulations. There is also a flexible accumulation system, allowing employees to choose from a wider range of checkup items with the higher amount accumulated for up to two years. In 2023, the health checkup utilization rate reached 85.6% in Taiwan, and 80% in China. The steady increase in the health checkup utilization rate reflects an increase in employees’ health awareness. In the future, examination items will be identified and made available based on the prevalence of major diseases around the world and in specific regions for employees to choose from according to their own needs or family medical history.

Track health checkup results and schedule physician consultations

To provide more package options and more schedule flexibility to suit personal preference, application for a variety of health checkup packages (such as cardiovascular programs, gastroenteroscopy programs, etc.) is open from January to November every year in Taiwan, and four hours of health checkup leave are granted. After the checkup, a professional team will analyze and explain the report, define management standard by health checkup result levels, and give appropriate treatment accordingly: Level 1 is normal, Level 2 will be given occupational health education guidance, Level 3 be given occupational medical consultation and health education, and Level 4 be referred to specialized medical attention or treatment after an occupational medical interview. In China, health checkups are completed between April and July every year.

Each office in Taiwan has an ambulance notification window, arranges first aid personnel training and regular return training, and can effectively provide rescue guidance when an emergency occurs. AEDs are installed in the building, and the location is announced for emergency rescue. The Mainland China Region currently focuses on arranging first aid courses and related lectures to popularize employees’ first aid knowledge. In the future, first aid reporting windows will also be set up in different regions. Blood pressure monitors are installed at designated locations in the office to always care about the health of employees. In response to influenza epidemic peaks in autumn and winter every year, in addition to regularly promoting and encouraging employees to receive influenza vaccines, we will also provide a half-price subsidy for the “Oriental Influenza Cell Culture Vaccine” in 2023, and arrange for vaccination to be completed before October to promote early prevention and treatment Measures can help avoid the risk of serious complications or death after infection.

Weight loss activities were retested after one year, and 27 employees maintained the results

A series of weight loss activities held from October 2022 to January 2023, with 423 participants and 85 groups, resulting in a total weight loss of 890 kilograms by January 2023. An annual acceptance event will be held for weight maintenance in 2023. In August 2023, a total of 34 employees passed the first stage of qualification review. By the end of the event in January 2024, 27 employees had successfully completed the challenge. In 2024, we plan to plan a series of “Health Passport” gathering activities that are more closely related to health sports. We hope to continue the good results of this event and reach a higher level.

The 2023 weight loss series purchased a professional body fat meter to provide employees with continuous monitoring of their own health and physical condition. Employees can conduct interviews with health managers based on the measurement data, and scientific data assists in diet and exercise planning.

Four major plans for employee health protection

Prevention of abnormal workload-triggered diseases

In order to avoid abnormal workloads, supervisors at all levels are required to take the initiative to care for the labor conditions of employees. Any health problems may be reported to the health manager for assistance and care. Health consultation and abnormal workload assessment are available during the monthly doctor consultation service.

Prevention plan for illegal infringement during the performance of duties

At the workplace, the Company has posted relevant publicity materials and specified a complaint hotline and email address in the work rules. If a colleague encounters sexual harassment, stalking, or other illegal acts while performing their duties, they can file a complaint. To safeguard the rights of complainants, the handling of complaints is conducted in a confidential manner, and the complainant’s name or other identifying information that could reveal their identity will not be disclosed. The person handling the complaint should create a written record of the handling process of the complaint, and follow the guidelines for preventing illegal infringement of job duties. The related execution records should be kept for 3 years.

Prevention plan for ergonomic hazards

The nature of WT’s work often involves sitting for long periods of time at workstations, which may cause chronic effects on muscle, fascia, and intervertebral discs. WT provides employees with adjustable desks and chairs to reduce the risk of such ergonomic hazards. The workstations can be adjusted according to individual needs, so that workers can work at a good gaze angle in a healthy posture. There are also standing workstation areas to reduce sitting time. In addition, seven robot vacuum cleaners were purchased for the cleaning staff to reduce repetitive gestures. The robots worked for 1,743 hours in total in 2023, sparing cleaning staff approximately 145.25 hours per month of repetitive gestures operating vacuum cleaners.

Relevant awareness posters have been posted on the health bulletin board on each floor. A pilot project began in 2023 inviting professional physical therapists to visit the offices once a quarter to provide one-on-one consultation and guidance on how to adjust incorrect postures, relieve discomfort and other ways to prevent ergonomic hazards. The physical therapists may provide treatment when necessary, including fastening to relieve pain from carpal tunnel syndrome, and dressing and bandaging in the case of muscle soreness and discomfort after exercise. They also give advice on how to exercise correctly.

 

The sessions were very popular in 2023, and those who have attended the sessions gave positive feedback and support to the project in the questionnaire survey, commenting that it is highly practical and helpful. An increased number of sessions are therefore planned for 2024.

Maternal health protection plan

WT Taiwan employees, including cleaning staff and other contractors, are all eligible for WT’s four major health protection plans. There is no shift or night work. The employees are entitled to prenatal leave, maternity leave and parental leave as legally specified. The Maternal Health Protection Plan was introduced to ensure the childcare-work balance for female employees.The Plan provides dedicated nursing rooms, professional health and safety consultations during pregnancy, postpartum and lactation periods, as well as priority parking spaces and other maternity-friendly work environment measures. In addition, related books and magazines in the reading area are available for borrowing, such as Mombaby, Parenting magazines, etc..

Paying attention to employee welfare and rights to build mutual trust and reliance

WT values the welfare and rights of its employees and actively promotes harmonious relations between management and labors. Work rules and various management regulations have been formulated in accordance with the Labor Standards Act and relevant laws and regulations, and the Code of Practice for Sustainable Development has also been formulated to specify the rights and obligations of both employers and employees in management matters, so that employees can fully understand, comply with, and protect their legitimate rights and interests. In the case of any major changes in the operating conditions that may affect employees’ rights and interests or work environment, WT informs employees within the statutory minimum notification period in order to protect employees’ rights and interests.

Implementing human rights risk assessment to create a suitable workplace

WT formulated, in accordance with international human rights conventions and initiatives, a Social Policy and Code of Conduct, which was signed by the Chairman and published on the Company’s official website as a standard for all employees, customers, suppliers and other stakeholders to follow.

 

In 2023, a human rights risk assessment covering 13 items in five categories was carried out at WT headquarters in Taiwan and found no high-risk employees. Furthermore, since the evaluation results did not indicate any high-risk situations, no improvement measures were planned. Additionally, there were no complaints received or any human rights violations detected. Therefore, no compensation measures for human rights violations were required in 2023. In addition, WT continues to raise the awareness of human rights issues for all employees through various education and training mechanisms, including education in pre-employment orientation for new employees, and through the WT e-Learning Academy, where employees can browse relevant online courses at any time. In 2023, 91 new hires were required to attend the human rights training, with a completion rate of 100%.

In addition, to ensure a discrimination-free and harassment-free workplace, WT trains all employees of the Group on human rights issues in the four major aspects of the Social Policy and Code of Conduct, which are labor rights, health and safety, ethics, and management systems. In 2023, a total of 2,790 current employees have received the human rights training, including 224 new hires at operating bases in Taiwan and China and 2,566 others who required regular refresher training (100% pass rate).

 

Offering multiple channels for smooth communication

WT provides a good platform for communication so that all relevant parties can access the stakeholders’ section on the Company’s official website. Employees may express their opinions to HR via email, telephone calls or in writing to communicate with the Company in two-way with regard to problems or concerns they encounter in work systems and environments. Each responsible unit will properly handle and provide feedback or improvement solutions to achieve effective communication. In 2023, one such input was received through the Company website, and none through internal channels. See “3-7 Ethical Corporate Management ” for details.

In addition, regular executive and departmental meetings are held, and employees kept informed of operational changes that may have a significant impact on them by means of announcements. As of now, employees’ rights and interests are well protected and there have been no major employer-employee disputes or negotiations. With good communication and interaction between the two parties, it is believed that a harmonious labor relations in the future will be sustained.

An incentive scheme more generous than legally required to maximize values for both parties

WT respects gender fairness and equality in pay. Nevertheless, an analysis of the existing employee makeup found that male employees are mostly in sales positions, which have a reward system for performance bonuses, or in application engineering related positions, which also have a higher pay due to the external salary benchmark; while female employees are mostly in logistics positions providing support for operations. The gender pay gap is mainly caused thus by different remuneration structures for different functions. WT will continue to improve the gender ratio of STEM (technology, engineering and other occupations) and optimize the gender makeup of all functions to close the gender pay gap.

Variable performance bonuses are distributed to share surplus results with employees

In the five major regions where it operates, WT’s standard entry-level pays are 1.03 to 2.16 times the local legal minimum wages. There is no gender difference in standard entry-level pays at WT. In addition, as required by SASB Standards, the entry-level basic pays at WT’s five logistics centers are 1.12 to 2.16 times the local legal minimum.

In addition to providing employees with market-competitive fixed salaries, WT designs quarterly (or annual) variable performance bonuses based on the overall operation profile, the achievement of departmental goals, individual performance and the nature of duties, so as to share operational achievements with employees and motivate them. WT also offers long-term incentives, with deferred compensation linked to the company’s long-term performance, to senior
managers and key personnel. The average salary was NT$1,392,000 in 2023, 2.32% lower relative to 2022, because the proportion of bonuses has been slightly reduced due to the decline in the overall international economic situation and market situations. The median salary was NT$1,117,000 in 2023, 1.92% higher relative to 2022. It has increased for five consecutive years, an increase of 11.59% from 2019.

Employee Stock Ownership Trust is established with 100% Company Incentive

In September 2020, WT Taiwan headquarters established an Employee Stock Ownership Trust, with employees (members) jointly organizing the Employee Stock Ownership Trust Management Committee. Employees with one year of experience are free to participate. As of the end of 2023, 90% of eligible employees are participants. Employees contribute a fixed amount from their monthly salaries, while the Company also contributes 100% of the incentive money to the Trust’s dedicated account. By allowing employees to share in operational growth, the Trust not only retain talents as intended, but also help employees to accumulate wealth through small savings and secure their pensions in the future.

Full contribution is made to the pension fund to protect employees’ retirement life

People-oriented WT not only values benefits for its employees during their employment but also actively takes care of their lives after retirement. The Supervisory Committee of Employee Retirement Reserve Fund was established for employees of WT individual companies who choose to stay in the pension scheme of the Labor Standards Act. The Committee is composed
of nine members, of whom three represent the employers and six represent the employees, and is re-elected once every four years. The Committee reviews and approves the amount of the employee pension fund and its deposits and payments to ensure labor rights and interests. The pension reserve is set aside at 2% of monthly wages and deposited in a special account in the Bank of Taiwan. An actuary was commissioned to issue an actuarial report on the employees’ pension fund for 2023, which shows that the present value of the defined benefit obligation is NT$223,995,000 and the fair value of plan assets is NT$165,099,000, which met the requirements of a full provision by government decree. In addition, for employees who opted for the labor pension plan under the Labor Pension Act, a monthly contribution of not less than 6% of pay is made to the employees’ personal accounts at the Bureau of Labor Insurance.

 

WT believes that only by providing employees with a secure work environment and a fair welfare system can employees fully contribute their talents without any worries and thus create maximum value. The benefits provided to the entire Group’s full-time employees in 2023 included group insurance, wedding gift money, maternity allowance, consolation money, health checkups, holiday gifts, company outings, departmental and club activities, seminars, and welfare items. The spend on employee benefits, including overseas regions, was approximately NT$91.67 million.

Creating a high-quality work environment as talents are essential for an enterprise

WT understands that PEOPLE are the most important asset of an enterprise. In order to create a better work environment for employees and attract professional talents to join the Company, WT follows the laws and regulations of the countries where its business bases are located, as well as the Social Policy and Code of Conduct formulated to meet its commitment to safeguard labor rights. Recruitment-related activities have been planned and executed according to the annual headcount plan of each department. In accordance with Article 38, Paragraph 1 of the People with Disabilities Rights Protection Act, WT employs a sufficient number of people with disabilities, simplifies the work process and assigns appropriate work to accommodate their needs, and provides timely care and encouragement from time to time.

As of the end of 2023, all the employees across WT’s operating sites are permanent and full-time hires. There are no employees on fixed-term (Labor regulations in China require employment contracts be signed in the form of fixed-term contracts in the first two years. However, all WT staff are on non-fixed-term contracts, so new employees who signed fixed-term contracts for the first two years with the Company are not separately counted), part-time (hourly paid), or zero-hour contracts. There are a total of 25 cleaning staff and 12 drivers who are working at WT and not employed by WT.

WT’s four core people-oriented concepts

Diversifying recruitment channels and developing promising talents
WT recruits talents aligned with WT’s core values via multiple channels including job bank websites, online platforms (such as LinkedIn, CakeResume, Blink, etc.), campus career centers, partnerships with universities, colleges, departments, as well as internal referrals. A complete training and development plan is provided to ensure talents translate learning into performance effectively, and thereupon build a talent pool ready for a rapidly-changing future. In 2024, an internal recruitment system will be designed and implemented for mid- and high-level supervisors transferring to another department and employees to another job.

In 2023, WT made some post-pandemic adaptations to its recruitment practices. In addition to strengthened publicity through various recruitment platforms, WT gave several on-campus recruitment presentations again, offering various full-time and internship vacancies. In order to develop talents while allowing students to apply what they have learned and gain work experience, a number of internship opportunities for different types of work will be offered in 2024 (such as sales, FAE, procurement, PO management, information, process optimization, human resources, etc.), totaling more than 20 vacancies. In addition, WT will also work with universities in cultivating promising talents, by providing scholarship funds to the College of Social Sciences, National Chengchi University and College of Engineering, Donghai University in 2024.

Bringing in new blood to maintain corporate vitality
In response to the rapid development, WT secures a competitive edge for the future by keeping a talent pool in line with the group’s long-term development strategy, and an optimized array in terms of level, number and structure. As of the end of 2023, the total number of WT employees was 3,463, a decrease of 84 employees, or 2.37%, compared with 2022, of which women accounted for 41.26%. Women account for 30.80% of managers, and 28.81% of mid-level and above supervisors. In particular, women account for 22.62% of supervisors in the sales department. In 2024, the value of diversity, equality and inclusion will be further promoted, with a goal of 35% female managers by 2029.

In 2023, the turnover was 14.93%, or 517 employees; and the voluntary turnover was 14.84%, or 514 employees. There was a merely 0.09 percentage point difference. By age, the turnover was only 5.62% among those aged 50 and over, and a higher 32.79% among those under 30 years old. In 2023, the new hire rate was 11.98%, or 415 employees. By gender, there was a merely 0.98 percentage point difference. By age, the new hire rate is a higher 32.79% among those aged under 30 years old, however, the 5.62% among those aged 50 and over is up 3.36% relative to 2022.

WT’s success is a result of an array of excellent talents and a team of young workers. With as many as 94.80% of its employees having a college degree or above, WT is able to cope with the fast-changing business environment and market trends with timely responses, innovative ideas and energy.

Professional team drives innovation and creates edges in the sector

WT’s management is mainly made of professionals in the electronic information industry. The marketing personnel at the front line have years of experience in trade marketing. The professional logistics support and technology R&D personnel, who are the proud of WT, promote existing products, strive for new agency lines and solve customer needs externally, and continuously improve the financial business system internally. The major managers have more than 10 years of experience in the semiconductor trade industry. The accumulated agency business and insight of market development trends gained over the years help them develop businesses and visions, and continue to run the operations towards prosperity. Therefore, WT strives to develop major functions of human resource management to make the best use of its talent pool, promote organizational development, and achieve the goals of “matching people with jobs, getting the right people for the right jobs, and making the best use of people’s talents.”

Committed to ethical standards and a transparent and responsible corporate culture

Integrity is WT’s most important core value and business philosophy. The Group’s executives and employees must abide by clear moral standards and code of conduct, and do their utmost to fulfill WT’s commitments to shareholders, banks, customers, employees, vendors and other suppliers. It is also the core requirement for WT to gain competitive advantage and act correctly.

In 2020, WT formulated the Social Policies and Code of Conduct, United Nations Anti-Corruption Policies, and United Nations Sustainable Development Goals Policies. In 2023, it released Anti-corruption, Anti-bribery and Anti-money laundering Policies, and revised the Ethical Corporate Management Best Practice Principles in line with global corporate governance and anticorruption
concepts and frameworks. The social policies and codes of conduct apply to the Board members, the Group’s employees, independent contractors, suppliers, and all those who do business with WT.

The Ethical Corporate Management Best Practice Principles, Procedures for Ethical Management and Guidelines for Conduct, Codes of Ethical Conduct, and Supplier Code of Conduct that the Board has adopted are available in either the Corporate Governance section or Sustainability Report section of the Company’s official website and the Intranet in Traditional Chinese, Simplified Chinese and English. Information on Ethical Values and Professional Code of Conduct and Insider Trading Prevention Education and Advocacy are made available on the Intranet for all employees’ reference. In addition, relevant personnel are also appointed to participate in lectures and symposiums held by industrial associations or professional groups, so as to strengthen the Group’s ethical operation policies.

 

LINK:

Major Policies

UNCAC Anti-corruption Policy

WT SDGs Policy

Social Policy and Code of Conduct

 

Regular refresher training on Code of Conduct to raise integrity awareness among all employees

An annual refresher training is given to all employees of the Group to ensure they are aware of applicable rules and regulations. In 2023, a total of 2,566note in-service employees were required to receive refresher training and 224 new hires to receive on-board training on Ethical Values and Code of Conduct. All of them have completed the course and passed the test (100% pass rate), with an accumulated attendance of ethical management training reaching 1,486.5 hours.

 

Note: After the merger with Excelpoint in 2022, the management systems are set to be integrated in phases, and the ethical management training is scheduled to be integrated in 2024.

 

WT conducts annual ethical management training for its employees, including full-time staff, contract workers, and subcontractor personnel. In 2023, the training covered 2,790 full-time staff members (accounting for 99.47%) and 15 subcontractor personnel (accounting for 0.53%). As of December 31, 2023, there were no contract workers in the company, resulting in no training participation from this category.

Implementing Ethical Business Practices and Strengthening Risk Management

To enhance the management of ethical business practices, “Ethical Management Team” has been established, comprising representatives from Human Resources, Legal, and Audit departments. The Chief Human Resources Officer (CHRO) serves as the highest authority within the team. Each business unit is responsible for the formulation, execution, and oversight of ethical business policies, management measures, and reporting procedures in accordance with their respective roles, ensuring the effective implementation of the Code of Ethical Conduct.

 

Ethical Business Practices and Anti-Corruption Management

Integrity is one of the core values of WT. We have established robust mechanisms for ethical business practices and anti-corruption management, which are implemented through the following actions:

Implementation Measures:

1.The Ethical Management Team conducts annual training sessions for all employees, including new hires, to promote awareness of ethical business practices and anti-corruption policies and regulations.

2.Operational units regularly monitor and review anomalies, such as conducting periodic supplier account verifications and visits, monitoring illicit transactions, investigating shell companies, detecting unusual payments, and identifying abnormal changes in logistics and delivery locations.

3.High-risk operations are prioritized as key audit items in the annual audit plan.

4.The CHRO reports the execution results to the Board of Directors on an annual basis.

 

WT has established stringent control mechanisms for business activities and operational procedures that are potentially prone to unethical behavior. In addition to regular monitoring and review of processes with higher corruption risks to prevent improper benefits, bribery, or other unethical conduct, internal auditors prioritize high-risk operations in the annual audit plan based on risk assessments. This approach aims to reduce the likelihood of unethical and corrupt practices. Furthermore, all departments and subsidiaries conduct annual self-assessments of their internal control systems to ensure the effectiveness of their design and implementation.

 

The Ethical Management Team reports the results of the previous year’s ethical management implementation to the Board every year. At the Board meeting on January 31, 2024, training on Ethical Values and Code of Conduct, status of professional ethical violation reports, and prevention of insider trading were reported to assist the Board in evaluating whether the ethical management prevention measures established by the Company are operating effectively.

No involvement in political-related initiatives and no political donations

WT has not made any direct or indirect donations to political activities, political parties/associations/NGOs, politically related organizations, individual politicians, or other voting/referendum initiatives in the past five years. The amount of political donations has been NT$0. In addition, WT has not lobbied on specific issues or conducted related activities with interest representative groups.

Compliance with laws and regulations

WT strictly abides by all applicable laws and regulations at each operating location. As of the end of 2023, the Taiwan headquarters was fined NT$50,000 in accordance with Article 24 of the Labor Standards Act after a labor inspection discovered failure to timely complete the handling of an overtime application. Subsequently, the management was reminded to fulfill their management obligations and care for employees at all levels. The working hours management
and overtime tracking mechanisms were strengthened, attention is paid to employees’ labor rights and physical and mental health protection. No violation of laws or regulations were found in economic aspect (investment, securities, taxation, etc.), environmental aspect (air pollution, wastewater, waste, etc.), or social aspect (human rights, disabilities, injuries, etc.) in any operating sites, and thus no resulting penalties from the competent authorities.

 

Whistle-blower ID and the investigation process are kept highly confidential

WT has a whistle-blowing system specified by the provisions of Article 23 of the Ethical Corporate Management Best Practice Principles and Article 21 of the Procedures for Ethical Management and Guidelines for Conduct. Anyone who suspects or discovers a violation should take the initiative to report it to Independent Directors, supervisors, internal audit supervisor or other appropriate person.

WT’s whistleblower channels include an internal whistleblower mailbox and a whistleblower section on the official website for whistleblowers to report illegal conduct of company personnel. The Auditing Office is responsible for accepting external reports, forwarding them to the heads of relevant units for investigation, and following them up until the cases are closed. The identity of the whistleblower, the content of the report, and the investigation process are all kept confidential. A complete record of the case acceptance, investigation process, and results is kept for five years. In addition, an independent hotline, dedicated mailbox, and special handling procedures have been set up for sexual harassment complaints in order to protect the privacy of the complainant. A serious breach of integrity is subject to removal or dismissal in accordance with relevant laws or management regulations, depending on the circumstances of the case.

 

Reporting Channels

Mail to “14F.,No.738, Zhongzheng Rd.,Zhonghe Dist., New Taipei City 235603 , Taiwan (R.O.C.)”

WT Website:”Report Ethical Violation in the Workplace

Receiving Unit

Auditing Office