｜ESG

Material Topics and Impacts on Walsin Lihwa's Relation Value Chain

● direct impact ｜ ○ indirect impactNote

Positive Impact Description Negative Impact Description Value Chain Impact Assessment Chapter Response
Suppliers, Contractors Walsin Customers

Risk Management

Significance to Walsin: To reduce the impact and influence of internal and external risks, Walsin Lihwa continuously identifies risks, plans response measures, and monitors risks.

Corresponding GRI Topic: GRI 201 Economic Performance

Through a sound risk management and tracking system, the financial, reputational, or other negative impacts that the enterprise may face can be reduced, increasing the enterprise's operational resilience. Without a sound risk control mechanism, major risks may cause financial, reputational, or other negative losses to the enterprise. ○ ● ○ 3.4 Risk Management and Regulatory Compliance

Business Performance

Significance to Walsin: Walsin Lihwa takes sustainable operations as its goal, refines its industrial strategy with steady steps, provides high-value products, maintains its industry-leading position, and promotes economic development.

Corresponding GRI Topic: GRI 201 Economic Performance

Improving productivity can reduce costs and waste and increase operational efficiency and capacity. Insufficient productivity may cause more costs and waste, leading to revenue losses and an increased environmental burden. ● 3.2 Operating Performance

Corporate Governance and Legal Compliance

Significance to Walsin: Walsin Lihwa values the rights and interests of stakeholders, strengthens the structure and operation of the Board of Directors, enhances information transparency, and implements corporate sustainability standards and measures; it also complies with government regulations, formulating relevant policies and measures in each compliance area and observing them jointly, to avoid the impact of illegal events on the Company's continued operations, finances, and other aspects.

Corresponding GRI Topic: GRI 2-9 Governance Structure and Composition; GRI 2-27 Regulatory Compliance; GRI 205 Anti-corruption; GRI 206 Anti-competitive Behavior

Upholding the principle of integrity management, adhering to ethical and conduct guidelines, safeguarding the rights and interests of stakeholders, and maintaining sound corporate governance in compliance with regulations, avoiding the risk of illegality and legal liability, maintaining the enterprise's reputation and image, and enhancing the brand image and credibility in the minds of customers. Negative impacts on the social environment and on Walsin Lihwa arising from violations of governance, social, and environmental regulations; and if subject to regulatory sanctions, this may cause negative losses to Walsin Lihwa's goodwill, finances, and personnel. ○ ● ○ 1.4 Air Pollution and Waste Management
2.4 Workplace Safety and Health
3.1 Corporate Governance
3.3 Business Integrity
3.4.3 Regulatory Compliance
Appendix 1 GRI 206 Anti-competitive Behavior

Product Quality and Responsibility

Significance to Walsin: As product market development trends evolve, ensure product quality and whether raw materials comply with safety and health standards, in order to meet customer expectations and relevant market norms.

Corresponding GRI Topic: GRI 417 Marketing and Labeling

Strict control of product quality, which will not cause harm to the environment or the human body, obtaining international certifications and meeting the expectations of external stakeholders. The raw materials used in products will cause serious impacts on the environment and the human body, and the Company has no relevant remedial measures. ○ ● ● 4.3 Product Quality and Responsibility

Hiring, Salary and Benefit

Significance to Walsin: Walsin Lihwa values employee benefits and treatment and upholds the philosophy of sharing profits with employees. Through regular market salary surveys, it hopes to attract outstanding talent to join Walsin Lihwa's work team by providing employees with market-competitive overall compensation.

Corresponding GRI Topic: GRI 2-7 Employees; GRI 401 Employment Relations; GRI 404 Training and Education

The Company provides a generous reward system and multiple employee benefits and care measures, attracting many outstanding talents to apply proactively, enhancing enterprise competitiveness. The compensation and benefit systems provided by the enterprise fall below industry levels, failing to attract talent and causing severe labor shortage problems. ○ ● 2.3 Talent Incentives and Retention

Brand Management

Significance to Walsin: Through clear brand positioning and marketing strategies, Walsin Lihwa continuously strengthens brand value, enhances global brand recognition, and strengthens customer stickiness to facilitate business and new market expansion.

Corresponding GRI Topic: GRI 417 Marketing and Labeling

Through consistent brand positioning and marketing communication, enhance global brand recognition and customer trust, and strengthen market expansion and long-term competitiveness. If misleading claims or brand crisis events occur, this will lead to reputational damage and loss of customers, and may face regulatory sanctions and litigation risk. ○ ● ● 3.5.3 Customer Service
4.1 Products and R&D Innovation
4.2 Green Products and Operations

Green Products / Green Business Development

Significance to Walsin: Walsin Lihwa adopts the strategy of "continuously developing high-performance green products, moving toward the circular economy and enhancing application-end efficiency, and reducing environmental impact," using a high proportion of "recycled and reusable" raw materials. Its production processes are grounded in "saving energy consumption and reducing carbon emissions," producing high-performance green products that achieve "net-zero practice and sustainable development" to help customers and end users fulfill their commitments to energy efficiency and carbon reduction goals.

Corresponding GRI Topic: GRI 301 Materials; GRI 302 Energy; GRI 305 Emissions

Actively develop green products to help the value chain reduce greenhouse gas emissions, gaining wide market favor. High product carbon footprint, challenged by the market, with gradually shrinking market share. ○ ● ● 4.2 Green Products and Operations

Information Security Management

Significance to Walsin: Walsin Lihwa is committed to strengthening the enterprise's overall information security protection capabilities, enhancing the enterprise's information security rating, meeting customers' information security requirements, and fulfilling its commitment to the information security goals of customers, shareholders, and all stakeholders.

Corresponding GRI Topic: GRI 418 Customer Privacy

Implementing information security maintenance, effectively protecting the normal operation of the Company's core systems and strengthening the information security system, protecting the rights and interests of customers. Failure to implement data and information security management, with business information or customer privacy being leaked, may face customer claims or regulatory penalties, causing damage to the Company's rights, interests, and goodwill; and if internal employees have insufficient information security awareness and there are external hacker attacks and other information security incidents, this causes losses to the Company. ● ○ 3.4.2 Information Security

Energy Management

Significance to Walsin: To reduce energy consumption and usage costs and enhance energy management intensity, Walsin Lihwa continues to promote and implement energy conservation and carbon reduction, moving toward green circular production.

Corresponding GRI Topic: GRI 302 Energy

Improve the Company's energy use efficiency and implement energy conservation and carbon reduction. Failure to properly manage the consumption of energy and resources increases operating costs or the risk of operational interruption. ○ ● ○ 1.2 Energy and Greenhouse Gas Management

Waste and Circular Regeneration

Significance to Walsin: Walsin Lihwa integrates the concept of circular regeneration into its usage strategy for various raw materials and resources during operations, including consumption status, the current state of resource recycling improvement, and pollution management, promoting the circular use of resources.

Corresponding GRI Topic: GRI 306 Waste

Considering product characteristics, increasing the implementation of the circular economy can reduce the generation of waste and reduce environmental impact. Waste generated during operations, if not handled by compliant environmental contractors in accordance with relevant procedures, may have a negative impact on the environment. ○ ● ● 1.4 Air Pollution and Waste Management

Occupational Safety and Health

Significance to Walsin: Establish occupational safety and health management measures and policies, including workplace safety maintenance, occupational disaster risk management, employee health management programs, and health examinations, to enhance the overall safety and health of employees.

Corresponding GRI Topic: GRI 403 Occupational Health and Safety

Occupational safety management measures are well planned, with no work injury incidents in recent years, and employees feel secure about the work environment. The work environment does not take safety protection into consideration, and without relevant education and training, employee work injury accidents occur frequently. ● ● ○ 2.4 Workplace Safety and Health

Customer Relationship Management

Significance to Walsin: Walsin Lihwa focuses on customers and industry development, and through continuously optimizing service processes, actively responding to customer needs and feedback, and in-depth collaborative development, is committed to becoming customers' most trusted partner.

Corresponding GRI Topic: GRI 416 Customer Health and Safety; GRI 417 Marketing and Labeling; GRI 418 Customer Privacy

Improved customer satisfaction and increased orders. Poor service and product quality, with increased customer complaint incidents. ● ● 3.5 Sustainable Supply Chain and Customer Service

Sustainability Commitment

Significance to Walsin: By enhancing organizational capabilities and deepening social participation, Walsin Lihwa is committed to becoming an enterprise that not only pursues growth and profit but also bears corporate citizenship responsibility. Walsin Lihwa embeds sustainable development in the Company's core strategy and daily operations, and upholding the spirit of pursuing excellence, works hand in hand with global partners to contribute to operational growth, technological innovation, environmental protection, and social progress.

Corresponding GRI Topic: GRI 2-22 Statement on Sustainable Development Strategy; GRI 2-23 Policy Commitments

The Company's senior management makes external sustainability commitments to enhance stakeholder confidence, with a good corporate image. Without a clear and firm stance on sustainability issues, the Company cannot gain the trust of stakeholders, damaging the corporate image. ● Message from the Chairman
Message from CEO and President
Walsin Lihwa's Key Development Milestones
2.1 Human Rights and Talent Policy
3.3 Business Integrity
3.5 Sustainable Supply Chain and Customer Service

Labor-Management Relations

Significance to Walsin: The rights-and-obligations relationship between labor and management, including two-way labor-management interaction and communication channels, employee satisfaction surveys, and employee grievance mechanisms.

Corresponding GRI Topic: GRI 401 Employment Relations; GRI 402 Labor-Management Relations

Listen to the voice of employees to achieve good two-way communication, enhancing employee productivity and retention willingness. Lack of communication channels seriously deprives workers of their rights, triggering employee protests and strikes. ○ ● 2.1 Human Rights and Talent Policy
Note: Indirect impact: includes impacts that are caused or that occur through business relationships.

Management Approach Table

Material Topic Policy / Commitment / Responsibility Goals / Resources / Actions / Complaint Mechanisms

Risk Management

Management Mechanisms and Purpose:

  • An internal audit system and independent directors are present to ensure the effective operation of internal control and reporting mechanisms.
  • Related departments carry out risk management work to lower the impact of operational risks.
  • Compliance with related laws and regulations.
  • Operating performance and efficiency.
  • Reports are reliable, timely, and transparent, and comply with relevant regulations.
  • The Chief Audit Executive makes reports at Board of Directors meetings on a regular basis, and makes reports to the Audit Committee and independent directors on the internal audit and control implementation status on at least a quarterly basis.

Business Performance

Management Mechanisms and Purpose:

  • Comprehensive strategy development and sound management practices are required to help achieve ongoing, sustainable growth while meeting the expectations of customers, employees, shareholders, and other stakeholders.
  • Strategy integration, digital transformation, and core competitiveness enhancement help Walsin Lihwa continue to improve its management performance.

Corporate Governance and Legal Compliance

Management Mechanisms and Purpose:

  • Periodic sustainability and corporate governance meetings are conducted to follow up on the implementation status of annual plans, thereby protecting shareholders' rights, treating shareholders equally, strengthening the Board of Directors' structure and operations, increasing information transparency, and fulfilling the Company's social responsibility.
  • Categorization is accomplished based on organizational function and the laws relevant to each function; the Company follows regulatory changes and makes proposals where necessary to revise the Articles of Incorporation or internal regulations.
  • The Business Integrity Center under the Sustainable Development Committee is responsible for the implementation of related policies, regulatory compliance training, and supervision of the audit mechanism.
  • A corporate culture of business integrity is created and sound business development is facilitated.
  • Ongoing optimization of the Company's intellectual property-related regulations and rules is implemented, and the Company has established an intellectual property management system.
  • Corporate governance is a mechanism for guiding and managing the Company to fulfill its responsibilities, protect shareholders' lawful rights, and give consideration to the interests of other stakeholders.
  • Business integrity is an important part of the Company's culture, stressing that all business activities must comply with local laws and regulations.
  • The Company is committed to complying with laws, regulations, and procedures, and has established an emergency reporting system.

Product Quality and Responsibility

Management Mechanisms and Purpose:

  • Close attention is paid to the EU's REACH and RoHS Directive as well as lists of new hazardous materials and Substances of Very High Concern, and product inspections by competent authorities on a regular or as-needed basis to fulfill health and safety duties.
  • Quality management system implementation and optimization to ensure customer satisfaction with product quality.
  • The quality of all products complies with domestic and international environmental protection regulations and laws and meets customer needs.
  • Established solid auditing and certification abilities, utilized internal/external audits and second- and third-party certifications, such as customer certifications, product certifications, and system certifications, and used the concept of PDCA to constantly improve the Company's quality management system.
 Actions:
  • Customer satisfaction survey
  • Customer visits
Resources and complaint mechanisms:
  • Contact person hotline and mailbox for each business group (Contact person)

Hiring, Salary and Benefits

Management Mechanisms and Purpose:

  • Walsin Lihwa has referenced the overall salary conditions of the employment market and established a remuneration system based on the salary levels of industry peers, in order to attract and retain talent.
  • The Company adheres to the principles of compliance with local laws and regulations, strives to create harmonious labor-management relations under legal requirements, and ensures that the starting salaries of new employees and foreign workers comply with local laws and regulations.
  • The Company provides reasonable and competitive overall compensation based on the value of every employee's professional competency in the market and the contribution of employee's duties.
  • Resources: Company website (Join us)
  • Actions: Quarterly labor-management meetings
  • Complaint mechanism: Internal suggestion mailbox

Brand Management

Management Mechanisms and Purpose:

  • Based on customer feedback, transform it into the driving force for brand R&D and service improvement to maintain a market-leading position.
  • Combine ESG performance and continuously reduce the environmental impact of products to enhance the brand's competitiveness and recognition in the international sustainable supply chain.
  • Upholding the philosophy of integrity management and the pursuit of excellence, promote the development of the brand "Steeval®," combining smart manufacturing with high-end product positioning, providing products and services that meet international standards, and enhancing brand trust and customer value.
  • Brand promotion: Using the cold-finished bar as the vehicle, implement the six major value commitments—smart manufacturing, diversified products, high-end grade, trusted certification, diversified services, and collaborative R&D and co-creation—to strengthen brand image and market communication. (Steeval® official website)
  • Quality optimization: Continuously strengthen quality management and process optimization to ensure that products meet international standards and regulatory requirements.
  • Customer management: Regularly conduct and analyze customer satisfaction surveys to deepen cooperative relationships and technical services and enhance trust and stickiness.

Green Product / Green Business Development

Management Mechanisms and Purpose:

  • Walsin Lihwa examines and manages the environmental impact of products from the aspects of raw material use, energy use, and greenhouse gas emissions.
  • Walsin Lihwa develops clean technology and green products, such as wind power and electric vehicles, to help reduce greenhouse gas emissions and air pollution as well as promote green economy development.
  • The Company continues to develop high-performance green products to move toward a circular economy and improve application performance in order to reduce its impact on the environment.
  • The Company continues to evaluate and actively consider participating in international environmental sustainability initiatives, such as the SBTi and EP100.
  • Goals: Focus on the future expansion of processes and materials, strive to develop green processes that achieve resource conservation, water conservation, electricity conservation, and energy consumption reduction, and produce high-performance green products for net zero practices and sustainable development.
  • Complaint mechanism:
    Complaint mailbox (violation of business integrity and sexual harassment)

Information Security Management

Management Mechanisms and Purpose:

  • Information security plans are formulated for year-by-year implementation of the Information Security Policy, information security systems and workflow standards are introduced, and comprehensive information security technologies and relevant protection measures are set up.
  • Maintenance of the confidentiality, integrity, and availability of sensitive customer data and business information, and jointly achieving information security goals with the collective efforts of all employees, internal and external information service users, and third-party service providers.
  • Walsin Lihwa has implemented the ISO 27001 Information Security Management System and obtained third-party verification, and the commitment to information security is fulfilled using the PDCA cycle. The confidentiality, integrity, and availability of all Company data are secured by a comprehensive information security management system. The Company continues to strengthen information security management by implementing pre-incident prevention, real-time monitoring, and post-incident response, in alignment with the Zero Trust architecture.

Energy Management

Management Mechanisms and Purpose:

  • Walsin Lihwa applies tools such as the ISO 14001 Environmental Management System, the ISO 50001 Energy Management System, and ISO 14064 greenhouse gas emissions inventory, continuously reviewing and improving to reduce energy consumption and usage costs and enhance energy management intensity.
  • Implement the environmental, safety, and health management policy of "continuously promoting and implementing energy conservation and carbon reduction, moving toward green circular production," set electricity-saving and carbon-reduction targets, and aim to use energy reasonably and efficiently and reduce greenhouse gas emissions to respond to the challenges of climate change.
  • Obtained management system certifications such as ISO 14001, ISO 50001, and ISO 46001
  • Formulate energy and resource reduction targets, promote various energy and resource reduction projects and regularly track performance, and continuously optimize the energy information platform for Taiwan and Mainland China plants

Waste and Resource Recycle

Management Mechanisms and Purpose:

  • Promote waste reduction and reuse, strengthen management mechanisms, and enhance resource use efficiency
  • Adopt the strategy of "continuously developing high-performance green products, moving toward the circular economy and enhancing application-end efficiency, and reducing environmental impact," integrating the concept of circular regeneration and use into the application of raw materials
  • Through deepening management, resource integration, technology upgrading, and cultivating environmental R&D/technical talent, achieve the management vision of "energy conservation and emission reduction, resource recycling, and reuse"
  • Slag resource recycling and reduction management: Expand channels for the disposal of reduction slag, strengthen slag management to reduce processing costs, and assess the application of low-temperature autoclaving and CLSM (Controlled Low Strength Material) to enhance resource recycling utilization
  • Establish a regenerated acid recycling system: Establish a regenerated acid recycling model and incorporate it into the reuse product system, strengthen flow control through product registration, and assess the introduction of a waste acid recovery and regeneration system to enhance circular benefits
  • Promote the application of recycled materials: Promote the high-value reuse of XLPE waste, develop recycled reels and introduce them to production lines and the customer end, and reduce waste and the use of virgin materials through in-process recycling to enhance resource use efficiency

Occupational Safety and Health

Management Mechanisms and Purpose:

  • Responsible for the integration and supervision of domestic and overseas plants' occupational safety and health management performance and gradual establishment a safety culture.
  • Green production, happy company, and sustainability policies with commitment to compliance, risk control, pollution prevention, energy saving, waste reduction, and performance enhancement, as well as caring for employee health, building a friendly and supportive work environment, and continuously improving performance in safety and sustainability practices.
  • Goals: Effective reward and punishment system implementation to improve environmental protection and occupational safety by strengthening personnel's safety awareness and managers' determination to help decrease occupational accidents.
  • Actions: Implementation of the ISO 45001 Standard for comprehensive production safety management, including the 5S Workplace Methodology, Total Productive Management (TPM), and Safety Job Procedures (SJP). Safety awareness developed by workers' full participation in their section and shift meetings to achieve zero work injuries, with the TPS lean production system and Kiken Yochi Training (KYT) in conjunction with simplified SJP for muscle memory enhancement to deal with high-risk jobs.

Customer Relationship Management

Management Mechanisms and Purpose:

  • The Company works closely with customers in terms of technology and service through a professional team to resolve customers' pain points. In addition to routine customer visits and material usage assessments, the Company explores specific topics with customers, monitors the progress of new product testing, and conducts technical seminars to discuss key technologies, thereby enhancing the value of its products and services.
  • Walsin Lihwa upholds the spirit and philosophy of "focusing on customer and industrial development" as the Company continues to optimize service processes, strengthen customer trust, and jointly drive industry progress with customers with the goal to create a win-win situation.
  • Actions: Customer satisfaction survey and visits
  • Resources and complaint mechanisms: Contact person hotline and mailbox for each business group (Contact person)

Sustainability Commitments

Management Mechanisms and Purpose:

  • The Board of Directors is the highest level guidance unit for strategies of Walsin Lihwa, and is responsible for fulfilling the Company's commitment to sustainable development. In addition to guiding management strategies and important action plans, it also monitors the achievement of various goals. The Sustainable Development Committee was established to promote and implement sustainable development, and assist the Board of Directors in continuously monitoring and supervising sustainability issues, ensuring continuous improvement in overall sustainability performance while pursuing corporate growth and profitability.
  • Strengthen resource management, decrease environmental impact, and pursue circular economy.
  • Uphold Walsin Lihwa's concept of full engagement to cultivate top-tier talent and create a happy workplace.
  • Uphold the corporate culture of business integrity and continue to improve corporate governance.
  • Strive to develop green processes, technologies, and products to create shared value with customers.
  • Goals: Pay attention to the rights and interests of stakeholders, and attach importance to impacts on ESG while pursuing sustainability and growth.
  • Resources:
    The Company's ESG website,
    Corporate sustainability hotline and mailbox (ESG mailbox)

Labor/Management Relations

Management Mechanisms and Purpose:

  • Through regular labor-management meetings and dedicated complaint channels, the Company promotes communication between management and employees to maintain harmony.
  • Uphold Walsin Lihwa's concept of full engagement to cultivate top-tier talent and create a happy workplace.