ESG at Walsin Lihwa

2023 Stakeholder Identification and Material Topics Analysis Process

Stakeholders

Walsin Lihwa identifies and prioritizes stakeholders pursuant to the five principles of the AA1000 Stakeholder Engagement Standard (2015), i.e., Responsibility, Influence, Tension, Diverse Perspectives, and Dependency.
In 2023, 19 senior executives took part in stakeholders identification, confirmed the degree of relationship between such stakeholders and Walsin Lihwa, took inventory of 11 categories of major stakeholders, and identified 6 categories of important stakeholders, 1) shareholders and investors, 2) customers, 3) employees, 4) suppliers, contractors, and outsourcers, 5) government agencies, and 6) banks and financial organizations. The analysis results are the same as those in 2022. Walsin Lihwa has established a complete and comprehensive communication channel to effectively stay on top of the issues of their concern and their specific opinions to enable active responsiveness, review, and improvement.

Stakeholders Contact

Importance to Walsin	Communication and Responsiveness	Frequency	Effectiveness of Communication in 2023
Shareholders / Investors
Shareholders are the foundation of Walsin's existence; the shareholders' meeting is the highest level organization that decides the direction of Walsin's development according to the law. Issues of Concern: Financial performance Corporate Governance Legal compliance Sustainability Strategy Labor relationship	General shareholders' meeting	Once a year	1 shareholders' meeting. 9 board of directors meetings. 3 ESG engagement meetings. 24 investor meetings. (briefing sessions for small corporations) 4 institutional investor briefings to communication market conditions, future trends, growth strategy development, and profitability.
	Publication of annual report	Once a year
	Investor conferences	4 times a year
	Questionnaire on sustainability issues of stakeholder concern	Once a year
	Company website	Immediate
	TWSE market observation post system	Immediate
	Company spokesperson system	Immediate
	Shareholder service center	Immediate
	Complaints and suggestions mailbox and hotline opinion@walsin.com	Immediate
Customers
Customers are the core of Walsin's improvements in products and services; Walsin develops long- term trusting customer relationships. Issues of Concern: Customer service and relationship Product quality and responsibility Occupational health and safety Legal compliance Sustainable Supply Chain Management	Questionnaire on sustainability issues of stakeholder concern	Once a year	Customer ratification: 89.6%. Regular and irregular visits to customers: 4,637 times. Phone or email communication and feedback. Participation in Wire & Tube Dusseldorf and TOC Asia in Singapore for product and service promotion as well as opportunities for cooperation with potential customers and partners.
	Customer satisfaction survey Please refer to section 3.5 Supply Chain Sustainability and Customer Service	One or two times a year
	Visits to customers	Irregular
	Phone, email and feedback sent through mail	Immediate
Employees
Employees are the most important asset of Walsin Lihwa to enable breakthroughs and innovations. Business sustainability at Walsin Lihwa relies on employee cohesion and support. Issues of Concern: Hiring, Salary and Benefit Labor Relationship Financial Performance Training and Education Occupational Health and Safety	Questionnaire on sustainability issues of stakeholder concern	Once a year	70 safety and health committee meetings. 20 labor-management meetings. 1 corporate annual meeting with more than 300 physical and online participants. 2 family days, with 4,500 colleagues and their families participating. 56 friendly train series activities including wisdom quotes from founder of Walsin Lihwa, lectures, reading clubs, etc. field. 13 campus recruitment sessions.
	Environment, health and safety committee meeting	Quarterly
	Labor-management meeting Please refer to section 2.3 Talent Motivation and Retention	Quarterly
	Employee intranet and e-newsletter	Information on our employee portal is updated twice a month. Announcements and the latest news are irregularly sent
	Complaints and suggestions mailbox and hotline opinion@walsin.com	Immediate
	Mechanism for the involvement of all employees	Immediate
Suppliers, Contractors and Outsourcer
Suppliers/Contractors/ Outsourcers are Walsin's upstream materials and service providers, and are key business partners that support Walsin. Issues of Concern: Legal compliance Customer service and relationship Occupational health and safety Sustainability Strategy Product quality and responsibility	Questionnaire on sustainability issues of stakeholder concern	Once a year	No major occupational disaster happening to contractors throughout the year. 2 exchange conferences at the plants in Taiwan and Mainland China to share green supply chain experiences (Please refer to 3.5 Supply Chain Sustainability and Customer Service.)
	Visits, on-site assessments and audits	Irregular
	Phone, email and letters	Immediate
	Supplier Conferences	Once a year
Government Agencies
Government agencies establish regulations for economic, environmental, and social aspects at the highest level; operations at Walsin are based on the latest laws and regulations. Issues of Concern: Occupational health and safety Labor relationship Human Rights Protection, Diversity, and Inclusion Hiring, Salary and Benefit Training and Education	Questionnaire on sustainability issues of stakeholder concern	Once a year	Material information disclosure in both Chinese and English in compliance with law. Participation in 6 environmental protection, occupational health and safety authorities' meetings including 2 occupational health and safety meetings and 4 environmental protection meetings. Declaration of environmental protection, occupational safety and health, and other related information on a regular basis.
	Official notification	Irregular
	Participation in briefing and conciliation meetings, questionnaires, and training courses on various policies and laws	Irregular
	Phone, email and electronic communications platforms	Immediate
	TWSE market observation post system	Immediate
Banks
Provide financial assistance to Walsin Lihwa, mainly focusing on the financial performance and sustainability performance of Walsin Lihwa. Issues of Concern: Legal compliance Sustainability Strategy Risk management Financial performance Air Emissions Management	General shareholders' meeting	Once a year	To enhance corporate governance and ESG communication, engagements were conducted with both internal and external stakeholders to understand and address their concerns: Responded to ESG surveys or inquiries from banks 4 times. Financial team participated in 6 ESG meetings and forums.
	Publication of annual report	Once a year
	Credit rating	Once a year
	Investor conferences	4 times a year
	Questionnaire on sustainability issues of stakeholder concern	Once a year
	Company website	Immediate
	TWSE market observation post system	Immediate
	Company spokesperson system	Immediate