The modern economy, society, and environment are still undergoing constant changes. To build a foundation of strong management and consistently grow and remain competitive, in 2024 Walsin Lihwa continued to implement the Company's strategies for its sustainable development blueprint in order to deepen its realization of environmental, social, and governance practices. At the same time, the Company has continued to advocate for digitalization and high-value added global transformation strategies, take advantage of opportunities and manage risks, and commit to realizing sustainable developmental goals while creating value. These measures ensure Walsin Lihwa will uphold the responsibilities of a corporate social citizen.
The risks and opportunities associated with climate transformation have significant impacts on the long-term sustainable operation of the Company. To achieve Walsin Lihwa's net-zero goal, the Company has established a group-wide carbon inventory plan, in which carbon management indicators have been devised and emission hotspots and product emissions per unit are comprehensively tracked. Carbon reduction measures are also implemented at each operation location, such as replacing old equipment with high-efficiency energy equipment, recycling waste materials, and installing renewable energy equipment. In response to the impending carbon fees, Walsin Lihwa introduced the activity-based costing (ABC) cost management methodology in 2024 to assess internal operating procedures and implement the integrated management of resources. The Company has also promoted self-reduction plans to actively improve energy management and carbon reduction efficiency in order to meet sustainable development goals while minimizing costs from carbon fees. We are also actively evaluating technologies such as electrified smelting for stainless steel, hydrogen energy, and carbon capture. The hope is to expand our carbon reduction with innovative technologies, enhance our corporate competitiveness, and achieve the vision of sustainable development.
In recent years, Walsin Lihwa has continued to integrate market opportunities brought by climate change into its high-value transformation strategy. Through a series of ongoing adjustments and forward-thinking deployments, our products have been successfully applied to green energy industries such as batteries, wind power, solar power, electric vehicles, and charging stations. Focusing on the four key directions of "energy creation, energy storage, energy transportation, and energy consumption," we are actively developing more green products and raw materials, promoting waste recycling, and inputting momentum into the development of a circular economy and renewable energy.
Walsin Lihwa has a core value of being "people-oriented." We provide employees with abundant career development and international perspectives through diversified exchanges, learning mechanisms, and industry-academia collaboration opportunities. We also cultivate professional talent from different fields and local regions while also continuously optimizing our talent recruitment strategies, thereby consolidating the Company's competitiveness and embodying the synergistic effects of a multinational group. Workplace culture and the composition of talent are becoming increasingly diverse. Walsin Lihwa has always accepted the characteristics and expertise of all employees with an open and positive attitude. We believe that the integration of diverse experiences, skills, and viewpoints is a key force for driving corporate innovation and growth. We are dedicated to creating a modern and friendly working environment by combining technology applications and an innovative culture, which will elevate team productivity and collaboration and allow each employee to recognize their own value.
As a corporate citizen, Walsin Lihwa continues to strengthen its ties with local communities and strives to establish shared value at every plant location. Walsin Lihwa collaborated with the Indonesia Morowali Industrial Park (IMIP) Sustainability (ESG) Foundation in Indonesia to actively promote local education and sustainability projects as well as contribute to community development. We also welcomed exchange students from National Taipei University of Technology visiting Taiwan under the "Indonesian International Student Mobility Awards" scholarship to discuss the current and future development of the wire and cable industry. This stimulated the students' interest in relevant fields and further promoted international education exchanges and collaboration. Together we promoted the passing-on of knowledge and technologies as well as innovation.
There is a demand at home and abroad for sustainability-related financial information. In response, Walsin Lihwa established a cross-departmental task force in 2024 in accordance with the IFRS Sustainability Disclosure Standards to proactively promote relevant pilot programs. Progress is regularly reported to the Sustainable Development Committee and the Board of Directors to quickly ensure the Company's measures are in line with international standards. We have also established an internal control system for sustainable information management in accordance with the requirements of the competent authorities, and we regularly review and evaluate its design and implementation. This is to ensure the quality of the disclosed content, further increase the credibility of sustainability information, and strengthen their relevance to the Company's overall sustainable development strategies.
Digital transformation is a crucial step and key action for increasing productivity. Colleagues from Walsin Lihwa participated in digital technology presentation sessions and also took part in robot process automation (RPA) and artificial intelligence (AI) application projects. We also introduced the Digital Twin technology in smart factories to enhance the smart visualization of processes. These digitalization measures have started to show results. Accordingly, Walsin Lihwa further strengthened the Company's governance measures in 2024 and established the "Digital Intelligence Development Organization" to focus on the implementation of lean manufacturing, digital business model innovations, and optimization of enterprise process management, thereby establishing a solid foundation for future technological applications. However, information security risks will also arise as an organization becomes more digitalized. Due to this, Walsin Lihwa has continued to strengthen the Company's existing information protection measures, enhanced the intensity of simulation drills, and continued to raise awareness of information security among our employees, thereby creating a comprehensive security protection system. In 2024, we were once again honored with the Information Security Leadership Award from the Taiwan Corporate Sustainability Awards.
Looking into the future, we will continue to move forward with prudence and stability, uphold the spirit of excellence, and support operational expansion, technological advancement, energy conservation, environmental protection, and social progress. Walsin Lihwa will confidently overcome all challenges and build a better and sustainable environment through the joint efforts of the team and global partners.
