A Message from the Executive Officers

 

The COVID-19 pandemic that touched the lives of everyone on the planet finally began burning itself out at the end of 2022. Climate change and global warming remain great challenges that humanity cannot avoid however. Compal is responding to the topics of sustainable development by continuing to work together with all stakeholders to realize a sustainable lifestyle for all humanity through a business philosophy that embraces innovation, harmony, and transcendence. To fulfill our commitment to sustainability and strengthen our sustainability governance, Compal is not only adding our voice to our customer’s initiatives but also continuing to engage in self-improvement. The eight functional teams under the “Sustainability Committee” were reorganized in line with the four EESG aspects of Economy, Environment, Society, and Governance into ten functional teams, namely: “Innovation”, “Customer Relationship”, “Supply Chains”, “Environment”, “Responsible Manufacturing”, “Human Resources”, “Social Participation”, “Corporate Governance”, “Information Security”, and “Risk Management.” Each team is responsible for setting targets and taking substantive action for each key topic. A “Chief Sustainability Officer” and “ESG Office” were also established to assist the Sustainability Committee with the implementation of ESG initiatives.

 

Economy

“Innovation”, “Customer Relationship”, and “Supply Chains” are emphasized by Compal to make the most of our role in design, manufacturing, and integration. By drawing on the support of customers and suppliers, we develop innovative products, technologies and systems that offer higher energy efficiency. We aim to simultaneously create economic value for customers, suppliers and Compal through the pursuit of the “Circular Economy.” To protect the health and safety of customers, Compal has now adopted “environmentally friendly, sustainable, and regenerative design” for the research and development of eco-friendly products that are 100% compliant with national and customer mandated environmental/EMC/RF/Safety guidelines. Innovative technologies have now reduced the quantity of auxiliary product materials required by 5% and ESG-related patent applications have exceeded 5% of total patents as well.
    In customer service, we improved the customer management system to ensure that all projects satisfy our customers’ design requirements and quality specifications. Compal is also collaborating with customers to introduce digital supply chain management to digitally integrate every part of the planned production process. Internet-of-Things (IoT), big data, and artificial intelligence (AI) technologies have utilized to improve productivity, transparency and reliability. Rapid simulation of supply and demand along with optimization of customer order allocations boost the Company’s competitiveness by reducing processing time, production cost, and risks.
    In supply chains, the “Sustainable supply Chains Management” program was introduced to mentor key suppliers on compliance with mainstream ESG standards and establish a systematic supplier self-assessment system. SAQ questionnaire analysis is used to identify high-risk suppliers, establish an on-site review plan, and draw up a Supplier Code of Conduct that strengthens the supply chain for Compal’s ESG ecosystem. At the same time, “no use of conflict minerals” in accordance with guidelines on human rights and conflict minerals is enforced with 100% of suppliers undergo investigation over conflict mi=nerals. Supplier conferences are also held to maintain constructive communications with suppliers. Management of raw materials and hazardous substances have been fully systemized fir 100% compliance on product hazardous substance control and customer regulations.

Environment

Compal focused “Environment” and “Responsible Manufacturing” to try and make a contribution to the zero carbon economic transformation through “Climate Change Mitigation and Adaptation”, “Water Resource Management”, “Energy Management”, and “Waste Management.” In April 2022, Compal formally submitted our science-based carbon reduction targets and commitment to net zero carbo emissions by 2050 to the SBTi to demonstrate our commitment and the actions being taken on climate change risks and challenges. At the same time, Compal introduced the Task Force on Climate-related Financial Disclosures (TCFD), issued a climate governance report for the Compal Kunshan Plant, took part in the Carbon Disclosure Project (CDP) and water security questionnaire, and received the “Management” ranking. Compal is continuing to participate in the waste electronic recycling program of our partners to promote the circular economy together. To show our support for the UN Sustainable Development Goals (SDG), Compal took part in the Yuantan River Mouth joint corporate coastal clean-up, Xialiao River coastal clean-up, an mangrove ecological and environmental education event.

In terms of production, Compal has adopted a scientific approach to carbon reduction by focusing on carbon reduction and smart factories. The plants have also continued to promote and obtain UL2799 zero waste to landfill certification to gradually reduce the total amount of waste each year. Products reaching the end of their lifecycle are also disposed off through eco-friendly and compliant methods to realize their circular reuse and processing. In energy management, Compal is continuing to improve energy utilization through the ISO 50001 certification system and make use of green electricity.

Social

Compal invests in “Human Resources” and “Social Participation” to cultivate quality talent, protect labor rights, establish positive employer-employee relations, boost our overall competitiveness, and create outstanding business performance through a sound system for “selection, employment, cultivation, and retention.” In return, we follow the business philosophy of “giving back to society” through active social engagement and contributing to the local community.

    In human resources, employee loyalty is enhanced through targeted recruitment and systemic development.
A comprehensive cultivation plan is then drawn up based on our business strategy and competency development map to develop quality talent, build-up critical knowledge, and enhance our overall corporate competitiveness. In labor practice and human rights, we prohibit the use of forced labor and promote gender equality in the workplace. Corporate human rights policy and compliance is implemented in accordance with internationally accepted human rights standards to improve labor rights. In occupational health and safety, Compal is continuing to enforce the ISO 45001 management system as well as strengthen employee health and safety training to reduce the incident of occupational injuries; to look after employee health, we organize weekly on-site physician consultations, conduct health promotion management for employees with high cardiovascular risk, promote Employee Assistance Programs (EAP), and help employees deal with “personal relationship, family, and workplace relations” issues to ensure the proper care of employee physical and mental well-being.

    In Social Participation, Compal leads employees to work with the group foundation, social enterprises, and charities to promote the UN SDGs by actively taking part in educational, charity, ecological conservation and community engagement initiatives. In 2022, a total of 2,321 Compal employees took part in charity events held by Compal and Hsu Chauing Social Welfare Charity Foundation. Money and goods were also donated to the group foundation’s rural education programs to help disadvantaged students enjoy a happy new year and summer vacation. To compensate for shortages of medical equipment on the offshore islands of Taiwan, Compal donated the “Apache Handheld Wireless Ultrasound System” smart healthcare product developed by the group to health clinics on offshore islands; to provide children of disadvantaged families with a better learning environment, Compal donated 151 mobile e-learning devices and smart wireless desk lamps to 250 disadvantaged children in Pingtung and Taoyuan so that the children’s education are not limited by environmental factors; to give back to the local community and promote a healthy society, Compal sponsored and took part in charity road runs and blood donation drives organized by the Taipei Neihu Technology Park Development Association; to stop the loss of biodiversity, Compal partnered with the Society of Wilderness on ecological conservation and education outreach.

Governance

“Corporate Governance”, “Information Security”, and “Risk Management” have been integrated by Compal so that we can continue to track changes in the internal and external environments through the establishment of a sustainability governance structure, information security management system, and a more robust risk management mechanism.
Corporate resilience is improved through periodical self-review and improvement, and digital transformation employed to enhance our sustainability governance performance and fulfill our commitment to business continuity.
    The Sustainability Committee reporting to the Board of Directors was formally established in March 2022. A Chief Sustainability Officer and ESG Office were placed in charge of sustainability-related topics. 10 function teams were also set up under the Sustainability Committee to oversee and delegate upgrades to the governance structure and risk management policy. The TCFD and SASB disclosure principles were adopted by Compal for the 2022 Sustainability Report to ensure due diligence on corporate social responsibility and enhance corporate disclosure. Independent assurance was also conducted by SGS in accordance with the AA1000 assurance standards, GRI Standards: Core Option, and SASB Standard. The report went on to receive platinum award in the “Taiwan Corporate Sustainability Awards (TCSA) - Electronics and Information Manufacturing Industry”, and a ranking of Top 21% ~ 35% of the TWSE’s 8th Corporate Governance Evaluation for publicly listed companies.

    In information security, information security management review meetings are conducted by Compal to ensure the continued applicability, appropriateness and effectiveness of information security systems. Information security training was completed by 100% of Taiwanese indirect personnel as well. In risk management, a risk management and internal control information system was set up to replace all manual operations. Company rules on related functions were also reviewed and recommendations on improvements to risk control points made to ensure proper awareness of ESG risks at every level of the Company.

Conclusion

ESG is considered an emerging framework for business administration and financial investment. The use of energy and resources during business operations and their impact on the environment, engagement with local communities and social groups that they come into, as well as self-restraint, emerging management techniques, and value-adding processes are all topics that businesses must fully take into account. In the future, Compal will focus on continued improvements to operations, supply chains, and R&D capability. Digitization, automation, and innovative design will be employed to restore our competitiveness in terms of costs, enhance productivity and quality, as well as reduce energy use and environmental impact. Targeted recruitment, systemic cultivation of talent, as well as the establishment and acquisition of joint ventures will serve to increase our standard of technology and boost the Group’s competitiveness. Sustainability will be incorporated into our R&D and mass production processes in the future to realize the goal of green, low-carbon production and bring about a sustainable future.

 

 

 Updated on July 21, 2023