Introduction to the Sustainability Development Committee
GIS established the Sustainable Development Committee in 2017. Through the promotion of the ESG functional team, the concept of sustainable development has been incorporated into the operations of various mechanisms of the Company. At the Board meeting on August 5, 2022, decisions were made to elevate the Sustainable Development Committee to a functional committee directly under the Board.
The Committee is composed of 3 Directors (including the Chairman and 2 Independent Directors), with the Chairman, Hsien-Ying Chou, serving as the committee chairperson and the Chief Human Resources Officer, Cheng-Tao Tsai, serving as the Chief Sustainability Officer (CSO).
Currently, there are 6 working groups under the Sustainable Development Committee, including：1.Governance Operation 2.Environmental Sustainability 3.Supply Chain Sustainability 4.Employee Care 5.Social Welfare 6.Risk Management.
The first-level supervisors of relevant functional units are in charge of the promotion and responding to issues of different aspects to fulfill the corporate social responsibility in the four aspects of implementing corporate governance, developing a sustainable environment, maintaining social welfare and improving information transparency.
Linking Executive Compensation to ESG Performance
To align with the company's sustainable development vision, the company has incorporated the sustainability performance of senior managers into its annual performance reviews. For the CEO, General Managers and Deputy General Managers, sustainability performance indicators account for 20-25% of their overall variable compensation. This initiative aims to strengthen senior management's implementation of ESG-related strategies, implement the company's sustainable development vision, and achieve interim sustainability goals. The Company regularly reviews its short-, medium-, and long-term sustainability goals annually and adds new targets as needed (short-term goals include promoting board diversity, conducting employee engagement surveys, maintaining a waste diversion rate above 99%, and implementing a packaging material reduction program, totaling eight items). Senior management sustainability goals are evaluated by examining the achievement of each ESG target item by item. The weight of each short-term goal is calculated by evenly distributing it based on the number of targets set by each responsible unit that year (for example, with eight short-term goals, each has an average weight of 12.5%). The more targets achieved, the better the sustainability performance. This not only contributes to improvements in corporate governance assessments and other ESG-related performance ratings, but also helps advance mid- and long-term sustainability goals through the achievement of short-term goals. According to the company's "Executive Performance Evaluation and Compensation Regulations," bonuses for senior managers are capped at twice their monthly salary for the year if their corporate governance rating or other ESG-related performance remains the same or improves compared to the previous year. These bonuses are evaluated annually at the end of each fiscal year. However, bonuses must be determined based on a balance between the company's overall operating performance, future industry risks and opportunities, and corporate governance performance and risk control.
Goal Planning and Annual Execution Status
The company's Sustainability Development Committee held 2 meetings in 2024. The results of these meetings were reported to the Board of Directors on November 11, 2024, and were duly acknowledged by the Board. Additionally, the Board resolved to increase the frequency of director involvement in the company's sustainability operations (such as investments related to clean opportunities), ensuring that the company’s operational strategies and sustainability development can progress in parallel.
1. GIS Sustainable Development Goals：Short/Medium/Long-Term Planning
(1) Short-Term (2025):
Maintain board diversity
Conduct employee engagement survey
Increase employee participation in social welfare activities
Maintain waste conversion rate of 99% or above
Continue implementing the TCFD climate-related financial disclosure framework and introduce the TNFD nature-related financial disclosure framework
Continue executing the packaging reduction plan
Continuously optimize and improve cybersecurity defense mechanisms
Complete climate-related questionnaires for key suppliers
(2) Medium-Term (2030)：Achieve 100% use of green electricity
(3) Long-Term (2050)：Achieve net-zero across the value chain and implement corporate sustainability development
2. 2024 Sustainable Development Execution Status
Add six paid benefit leaves (e.g., Elder care leave, Companion reading leave, etc.)
Continued implementing risk management assessment and control plans
Continued conducting audits for key suppliers
Continued reviewing and maintaining ISO 27001 certification
Continued executing the packaging reduction plan, achieving a 60.2% reduction in usage
Implemented packaging sharing program (covering upstream and downstream), saving a total of 83,513 Kg of trays
MSCI ESG rating: BBB
RBA VAP Silver-level Certification
UL2799 Waste Zero Landfill Platinum Certification (highest level)
Awarded the following 4 external sustainability awards：
A. National Sustainable Development Award – Corporate Manufacturing Category：National Sustainable Development Award
B. TCSA (Taiwan Corporate Sustainability Awards) – Asia-Pacific Sustainability Action Award (APSAA)：SDG 7 Bronze Award
C. TCSA Taiwan Corporate Sustainability Award：Excellence in Foreign Enterprises in Taiwan Sustainability Award
D. TCSA Taiwan Corporate Sustainability Award：Sustainability Report – Electronics Manufacturing Industry, Category 1 Gold Award