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Implementation of the Sustainable Development
Implementation of the Sustainable Development
Item
Implementation Status
Implementation Status Difference from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons
YesNoDescription
Does the company establish a governance structure to achieve sustainable development, and set up a dedicated (part-time) unit to promote sustainable development, which is authorized by the board of directors to handle senior management, and supervised by the board of directors?
v
The Company officially established its Corporate Social Responsibility (CSR) initiative in 2007 and changed its name to the Sustainability Committee in 2022. It is the highest-level sustainability decision-making organization within the Company. The chairman of the board acts as chairman of the committee, combines with senior executives to jointly review the Company's operational strategies and capabilities, and formulate a medium- and long-term sustainable development plan.
The "Sustainability Committee" is a cross-departmental communication function that integrates top and bottom lines. The Company has set up an ESG team to identify sustainability issues that are critical to company operations and stakeholders' concerns through monthly meetings, formulate strategies and work guidelines, plan and execute solutions, and track implementation results to ensure that the sustainable development strategy is implemented in daily management.
The Sustainability Committee will report to the Chairman on a regular basis and to the Board of Directors at least once a year on the results of sustainability implementation and future work plans. Proposal content includes (1) identifying sustainability issues that require attention and formulating corresponding action plans; (2) goals and policy revisions of sustainability-related issues; (3) supervising the implementation of sustainable management matters and evaluating the implementation. The Board of Directors will also evaluate the success of the strategies and the progress of the implementation, and will urge for adjustments when necessary.
No Difference
Does the company conduct risk assessments on environmental, social and corporate governance issues related to company operations according to the principle of materiality, and formulate relevant risk management policies or strategies?
v
This disclosure covers the sustainability performance of the main business locations from January 2023 to December 2023. The boundary of risk assessment is primarily the Company, including business locations in Taiwan, China, other parts of Asia, the Americas, and Europe.
The Sustainability Committee conducts analysis in accordance with the materiality principle in the sustainability report, communicates with internal and external stakeholders, reviews international/national research reports and literature, integrates data from various departments, evaluates material ESG issues, and formulates effective identification , assessment, control, and supervision of risk management policies, and the adoption of specific action plans to reduce the impact of related risks.
Major Issues
Risk assessment items
Description
EnvironmentCountermeasures to Climate Change
1.
The Company has constructed a climate risk identification process using the TCFD framework. After cross-departmental discussions on climate risks and opportunities, a total of 3 opportunities and 3 risks were identified.
2.
In response to opportunities and risks, the Company has formulated management strategies and goals, and implemented institutional management to effectively reduce the impact of climate change.
In response to opportunities and risks, the Company has formulated management strategies and goals, and implemented institutional management to effectively reduce the impact of climate change.
1.
The Company has established an environmental management system that has been certified for environmental and energy management.
2.
Regularly inventory greenhouse gas emissions according to the GHG Protocol, and continue to implement carbon reduction measures based on the results to effectively reduce the impact on corporate operations.
SocietySociety
1.
The Company has completed the certification of "ISO 45001 Occupational Health and Safety Management System".
2.
Fire drills and occupational safety education and training are held on a regular basis each year to improve employees' emergency response and self-safety management capabilities.
3.
In response to the Company's compliance with various social laws and regulations, an internal audit plan is prepared every year, and various operating procedures are checked for compliance.
Employee Rights and Diversity and Equality
1.
To protect the diversity and equality of employees in the workplace, the Company has established the Hon Hai/Foxconn Technology Group Code of Conduct (CoC) and the chapter on labor rights.
2.
Through regular and ad hoc employee training, the Company raises employees' and the organization's awareness towards respect and tolerance, and ensures that all internal policies are implemented in accordance with the spirit of diversity and equality.
3.
The Company provides employees with various channels for grievance and feedback to protect the rights and interests of employees.
Corporate governanceInformation security and customer privacy
1.
Risk assessment criteria have been established for cyber security risks. Risk management and continuous improvement are carried out from the organizational and technical levels to reduce corporate cyber security threats to ensure the effectiveness of information security management measures.
2.
The Company has completed the "ISO/IEC 27001 Information Security Management System" certification and continues to conduct training courses to strengthen its corporate culture of information security.
3.
The Company has formulated a code of conduct and responsibility standards on the basis of complying with relevant laws and regulations and international standards to protect customer health and safety, customer privacy, consumer rights, and complaint rights.
Corporate Governance and Risk management
1.
Continue to strengthen the functions of directors, plan relevant continuing education topics and courses for directors, and update directors with the latest regulations, system developments, and policies every year.
2.
The Company provides directors' liability insurance to prevent litigation or claims against directors.
3.
The Company adopts a comprehensive risk management and control system to clearly identify, measure and control various risks, including market risk, product risk and operational risk.
Financial performance
1.
Execute risk assessment in response to the impact on the Company's profit and loss.
2.
Not engaging in high-risk or highly leveraged investment.
No Difference
Environment Issues
Does the company establish proper environmental management systems based on the characteristics of their industries?
v
The Company firmly believes that when promoting environmental protection, it must not only comply with relevant laws and regulations, but also need to be in line with international development trends. In 2022, the Company established an environmental sustainable development strategy based on the identified environmental issues. In response to international trends and customer requirements, the Company's business units have established an environmental management system, and acquired ISO14001 (effective date: 2022/09/06 - 2025/09/06) certification and will continue to promote the Company's environmentally sustainable development. At the same time, the Company conducts greenhouse gas inventory in accordance with the GHG Protocol every year to track carbon reduction results. Please refer to the Company's Sustainability Report and the Company's official website(https://www.honhai.com/en-tw/CSR/focus-environment?section=focus-environment-tab1) for details.
No Difference
Does the company endeavor to utilize all resources more efficiently and use renewable materials which have low impact on the environment?
v
The Company has adopted the ISO 50001 energy management system and passed third-party verification (certificate expiry date: 2023/1/12 - 2026/1/12) to systematically manage the Group's energy consumption and increase risks and opportunities of energy efficiency. The Company sets an annual energy-saving target of 4.2% based on the previous year, and the actual energy-saving rate in 2023 is 6%. The Company continues to promote the implementation of energy-saving technical transformation projects. In addition, the Company also actively develops new technologies for energy conservation and emission reduction, new products, and new business models to fully explore the potential of energy conservation, and to promote and improve the Company’s transformation and increase revenue, and ultimately, continuously optimizes the Company's energy-saving and carbon-reduction system and achieves the goal of continuous improvement. The Company signed a memorandum of cooperation with CDBC Capital to jointly establish Kai Hung Energy Co., Ltd., hoping to lead the way in investing capital into the sustainable green energy industry, provide much-needed green power for enterprises, and create relatively stable investment returns. In 2023, the Company's mainland China region consumed a total of 7,818,392,092 kWh electricity, of which the renewable energy consumption reached 5,058,490,071 kWh, accounting for approximately 65%. Data on other regions will be disclosed in the Sustainability Report after the collection is completed. The raw materials used by the Company are in compliance with the EU RoHS, REACH, and halogen-free regulations. The Company continues to work with international customers to disclose chemical safety information on the processes used by the assembly plants, and establish a list of prohibited substances to complete the replacement of customer products with green chemicals. In terms of green manufacturing, the company requires the company to conserve resources, explore the development of waste reduction and reuse technologies, and implement a zero-waste project between the company and suppliers to maximize the economic benefits of recycling.
Does the company assess the potential risks and opportunities of climate change on its present and future operation, and take measures to respond to climate-related issues?
v
The Company has established the Sustainability Committee as the climate change management body, chaired by the Chairman. It reviews the Company's climate change strategies and goals, manages climate change risks and opportunities for actions, reviews the implementation status and discusses future plans, and reports to the Board of Directors on a yearly basis. The Company has set up Team E under the ESG team, headed by the Chief of Environmental Protection. The team is responsible for implementing greenhouse gas reduction paths and proposals, and regularly tracking and reviewing the progress and results. The Company officially became a supporter of climate-related financial disclosures (TCFD) in 2021, and evaluated the risks and opportunities of climate change to the Company in accordance with the framework of TCFD recommendations. A complete assessment and annual renewal review were conducted every three years. The Company completed the first "Net Zero Vision Report" in 2023 and made it public on the official website. It clearly identified 3 major risk items: increase in demand for renewable energy and restrictions of electricity laws and regulations, uncertain market information, and increase in concern or feedback from stakeholders. The Company also identified feasible opportunities and worked out countermeasures. The Company follows the green, smart, and circular economy strategy. In terms of climate change mitigation, the Company continues to develop projects such as green operations, energy management, carbon information disclosure, and green energy funds, enhance the capacity of sustainable operation and construct core competitiveness. For details, please refer to the Environmental Section of the CSR Annual Report. (https://image.honhai.com/reports/CSR/EN/2021/HonHai_2021_Sustainability%20Report_EN_Chapter5.pdf)
Does the company conduct assessment on greenhouse gas, water consumption and waste for the last two years, and establish company strategies for energy conservation and carbon reduction, greenhouse gas reduction, water saving and waste management?
v
The Company began to promote greenhouse gas emissions since 2008, and participated in the Carbon Disclosure Project (CDP) in 2010. The Company conducts inventory of greenhouse gas emissions in accordance with the "GHG Protocol" /ISO 14064, and actively promotes ISO 14064 independent third-party verification within the Company.
Greenhouse gas emissions in the past two years
(Unit: Metric tons of CO2e)
Scope Year
Scope 1
Scope 2
(based on the location)
2022222,2955,535,324
2023232,248 (Mainland China)1,928,758 (Mainland China)
In response to the international net zero emissions initiative, the Company joined the CA100+ initiative and pledged to reduce greenhouse gas emissions by 42% for 2030 compared to 2020, and achieve net zero emissions by 2050.
In order to cope with climate change and promote the sustainable operation of the company, the company plans to continue to increase the use of renewable energy, and hopes to achieve green power use accounting for more than 50% in 2030.
The Company actively implements water resource management planning, identifies water risks, formulates water management strategies and targets, implements various water-saving projects, and promotes water recycling and reuse, in order to achieve conservation of water resources, efficient use of water resources, reduction of wastewater discharge, and impact on the environment.
The Company plans to reduce water intensity by 6% compared to 2020 by 2025. In 2022, the Company's total water intake reached 91,471,000 tons, and in 2023 the Company's total water intake (use) reached 81,596,221 tons. (The data covers the Greater China region, and global data were collected as disclosed in the Sustainability Report.)。 In order to practice the circular economy strategy, the Company actively promotes "Zero Waste" project, In addition, a waste management platform was established in 2021 at Shenzhen Longhua Park, China to track waste generation, flow, and conversion rate in real time through data management and control to achieve zero waste and build a zero-waste comprehensive ecological park. The Company plans to obtain at least 5 gold-certified plants with zero waste to landfill (UL2799) by 2025, and a total of 4 plants have obtained certification in 2023, with a total waste of 818,453 tons in 2022, The total amount of waste products reached 587,518 tons in 2023. (The data covers the Greater China region, and global data were collected as disclosed in the Sustainability Report.)。
Social Issues
Does the company formulate appropriate management policies and procedures according to relevant regulations and the International Bill of Human Rights?
v
The Company has established work rules in accordance with labor laws and personnel regulations to protect the legitimate rights and interests of employees. As a full member of the Responsible Business Alliance (RBA), in addition to actively participating in alliance activities and undertaking member-related obligations, the Group is committed to the compliance and promotion of corporate social responsibility together with peers and partners in the electronics industry. The "Code of Conduct" has been formulated based on the RBA, which is signed by the chairman of the board and the top managers of each business group. It is actively implemented and listed as a required course for all new employees every year. Current employees are continuously reminded that they should comply with the code of conduct requirements. The code of conduct covers eight major aspects: ethics, labor and human rights, health and safety, environment, management system, responsible mineral procurement, anti-corruption policy, and anti-slavery policy.
The Company dutifully abides by international human rights regulations and establishes the Company's "Employee Human Rights Chapter" with reference to the "Universal Declaration of Human Rights". The content includes 12 key requirements such as prohibition of unlawful discrimination. The special chapter on human rights demonstrates the importance and commitment of the Company to human rights. It provides human rights protections in terms of policies for employees partners hired by the Group and suppliers in any form, and implements all-employee training. In practice, we conduct labor audits and self-assessments at key factories around the world through human rights risk assessments. The dedicated unit and responsible person continue to track and audit the deficiencies, and improvement measures and progress; regularly follow up the self-assessed human rights risk factory areas and check the corresponding risk control mechanism. The Company has also established the "Supplier Social and Environmental Responsibility Code of Conduct" to ensure that suppliers and the Company comply with the same human rights principles.
No Difference
Does the company formulate and implement reasonable employee benefits measures (including remuneration, vacation and other benefits, etc.), and appropriately reflect operating performance or results in employee compensation?
v
According to Article 28 of the Company's Articles of Incorporation, if there is profit in the year, 5% - 7% of the profit shall be set aside as employee remuneration. The Company has established performance bonus and employee remuneration and other reward systems. Share the performance with colleagues so that the salaries of colleagues can grow together with the Company's operations. In addition, the Company has established a code of business ethics, employee self-discipline, performance appraisal, and reward and punishment systems to guide employees' behaviors in line with sustainable development policies.
Does the company provide a healthy and safe working environment and organize training on health and safety for its employees on a regular basis?
v
The Company has established occupational safety and health policies, regulations and plans, and pursued zero injuries, zero occupational diseases, and zero accidents, and was awarded the Excellent Unit and Personnel for Occupational Safety and Health by the Ministry of Labor and New Taipei City. The Company conducted the occupational safety and health management system conversion in 2019, and obtained ISO45001 (valid from November 24, 2022 to November 24, 2025) and CNS45001 certificates.
The Company has established a comprehensive education and training system, and regularly organizes safety, health, and health-related activities to strengthen the safety and health awareness of employees, and accumulate disaster-free working hours in the factory.
The Company regularly hosts health promotion training during training for new recruits. In 2023, the Company organized 46 health promotion training courses, totaling 23.5 hours, and 57 labor safety and health training courses, totaling 92 hours.
The number of fire incidents in 2023 was 0. Disaster response drills are held every year to improve personnel emergency response capabilities and strengthen disaster relief knowledge to reduce the frequency and severity of disasters.
Does the company provide its employees with career development and training sessions?
v
The Company’s Career Development unit is tasked with the planning and implementation of the Career Development Program.
Does the company comply with relevant regulations and international standards on the health and safety of customers, customer privacy, marketing and labeling of products and services, and formulates relevant policies and procedures to protect consumer rights and handling complaints?
v
The Company actively manages the product value chain. Management mechanisms have been set up from raw material procurement, logistics to customers, and continue to track product safety information and establish a reporting mechanism to implement product safety commitments.
The Company has established strict information systems and policies, including management and technical aspects, to protect the information security requirements of customers, employees, and suppliers, and to protect the privacy and property rights of relevant stakeholders. The Company has established a code of conduct to protect customers' health and well-being health and safety, customer privacy, consumer rights, and right of complaint. Detailed procedures and codes can be found on the Company's official website.
The Stakeholders section has been set up on the Company's website to provide customers with complaint channels and strengthen customer relations. At the same time, the business department communicates with customers on a regular basis to confirm customer satisfaction, and handles customer complaints in the first time to protect customers' rights and interests.
Does the company formulated and implement supplier management policy, requiring suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights?
v
The Company has established Code of conduct for social and environmental responsibility. Requiring suppliers to adhere to environmental, occupational health and safety, and labor rights guidelines, and supervises and audits accordingly. For details, please visit Hon Hai's Supplier ESG management platform website:
The Company's central procurement and various business units have selected new suppliers, auditing and counseling, performance evaluation, education and training, and supplier conferences, etc., on the basis of long-term effective cooperation, improve supplier capabilities, strengthen the resilience of the supply chain, and reduce operational risks. The Company's suppliers in 2023 meet the following conditions.
Selection of new supplierFollow the supplier code of conduct, sign a letter of commitment, and pass the selection of suppliers based on Code of conduct for social and environmental responsibility.
Suppliers of raw materials are required to pass ISO 9001 Quality Management System/ISO 14001 Environmental Management System/ISO 45001 Occupational Health and Safety Management System/QC 080000 Hazardous Substance Management System/ISO 14064 Carbon Inventory Certification.
Suppliers must obtain a license approved by the government depending on the type of business.
Supplier auditThe Company's central procurement and each business unit have set up an audit function to conduct regular online investigations and on-site audits of suppliers through the supplier management platform. At the same time, based on the severity of defects, suppliers are required to provide improvement plans and measures within a specified period of time, and then confirm them.
Supplier ESG performance evaluationThe Company conducts ESG performance evaluations on key suppliers through the supplier ESG management platform. The evaluation items include: net zero carbon, zero waste, green products, labor rights; suppliers are evaluated objectively and fairly through supplier self-assessments and uploading of supporting evidence of ESG performance, and based on the supplier's annual performance ranking to determine the suppliers with good and poor ESG performance. Rewards will be given to suppliers with outstanding ESG performance. Suppliers with poor ESG performance will be guided for improvement. Those who do not cooperate with the improvement will be reported and included in the Group's Restricted Supplier List (RSL) for restricted use.
Supplier education and trainingThe Company will organize educational trainings from time to time, and collaborate with professional institutions in the industry to organize small-scale trainings and forums to effectively improve suppliers' sustainability management capabilities through different forms of communication.
Supplier ConferenceThe Company holds supplier conferences regularly to convey the Company's concept, strategy, and goals of sustainability and to strengthen communication with suppliers. Meanwhile, suppliers are able to provide on-site feedback and the Company can respond in a timely manner, thereby enhancing the effectiveness of communication.
For more details, please refer to the "Supplier Management" section of the Company's Sustainability Report.
Does the company compile corporate social responsibility reports or reports that disclose the company's non-financial information based on international CSR compiling standard or guidelines? Is the report accredited from accreditation agency or third-party verification organization?
v
The Sustainability Report of the Company has been compiled in accordance with the Global Reporting Initiative (GRI) GRI-Standard and the standards of the Sustainability Accounting Standards Board (SASB). The aforementioned report has been certified by a third-party certification body in accordance with AA1000 and disclosed on the Company's website. In 2022, the certification authority was BSI, and in 2023, the certification authority was AFNOR International.
No Difference
If the Company makes its own corporate social responsibilities principles according to the Rules of Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies, please state the differences: Not applicable.
Any other important information that helps to understand the conduct of corporate social responsibility:
(1)
Adopted new processing system to enhance the capacity to recover wastes and sewage. The new system has been installed and put into operation in some areas in the plant.
(2)
Respecting employees, the Company emphasizes that it does not hire child labor, does not force employees to work overtime. Managers are prohibited to discriminate or harass against employees. All relevant measures are officially announced.
(3)
The Company has Health and Safety Department, examining the facilities, providing training to employees on industrial safety and health and conduct performance review on a regular basis.
(4)
The company has a supplier management department, providing audit and trainings on corporate social responsibilities to suppliers.
(5)
The Company participates in events relating to development of society, charity groups and domestic governments via donations:
1.
Donations totaling NTD 4,094,500 to private and government agencies.
2.
Donation of 1 set of bottom nozzle for fire and disaster relief to Dingpu Fire Brigade, Tucheng District, New Taipei City (total price about NTD 90,000).
3.
Donation of more than 300 sets of stationery items to the disadvantaged children in the 18 Hon Hai Education Foundation Starlight Project bases.
4.
The Hon Hai Education Foundation collected 30 second-hand tablets and laptops from employees and donated them to
5.
Donation of rapid screening reagents to 31 institutions, including social welfare organizations, hospitals, and schools, totaling NTD 17,662,976.