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Corporate Sustainability Management

▶️Governance Structure and Reporting Mechanisms         ▶️Corporate Sustainable Development Goals

In 2015, WPG Holdings established the "WPG Corporate Sustainability Committee" to coordinate the implementation of business and policies related to corporate sustainability. In order to enhance corporate sustainability competitiveness, the Chief Sustainability Officer was established in 2021 to strengthen ESG sustainability-oriented practices and tasks. In February 2022, the former "WPG Corporate Sustainability Committee" was reorganized as the "WPG ESG and Sustainable Development Committee" (hereinafter referred to as the Sustainability Committee), which is the highest steering body for sustainability governance operations of WPG Holdings, and incorporates the ESG concept into its management strategy to demonstrate its determination to operate in a sustainable manner.

The Sustainability Committee is chaired by the Chief Sustainability Officer of WPG Holdings and members are composed of the Chairman of the Board of Directors, the Chief Executive Officer and an independent director. The Committee is responsible for setting and implementing specific action plans for the Group's overall sustainability goals and reporting to the Board of Directors on a regular basis (at least once a year) on implementation plans and results. The ESG Office, a dedicated unit directly under the Chief Sustainability Officer, is responsible for planning and promoting the sustainable development of WPG Holdings, tracking the effectiveness of implementation, establishing continuous improvement plans, and reporting to the Sustainability Committee on a quarterly basis.

Resolutions on Sustainability Matters

The Sustainability Committee was convened three times in 2022, with a 100% attendance rate of all members. The Board of Directors of WPG Holdings regularly reviews ESG-related reports. The Chief Sustainability Officer and his team members prepare annual ESG plans or targets for the Board of Directors, and the Board of Directors then evaluates and reviews the progress and makes recommendations for adjustments. The Board of Directors will evaluate and review the progress and provide revised feedback. The Sustainability Committee submitted three times to the Board of Directors in 2022, including:

1.Progress reports on key ESG projects (including Material Topics)

2.Progress reports on the WPG's greenhouse gas inventory planning and progress. The responsible unit is tasked with proposing amendments to the relevant sustainability policies on an ongoing basis.

Sustainability Committee Functional Groups

There are five functional groups under the Sustainability Committee, namely the "Corporate Governance Group", "Environmental Sustainability Group", "Sustainable Talent Group", "Social Participation Group" and "Supply Chain Group". The first-level executive of each relevant functional unit is responsible for promoting various projects or measures to respond to material issues and integrate them into daily operations. The main concerns of each functional group are listed below, and related issues are discussed regularly.

Stakeholder Identication and Communication

Through a systematic approach, WPG Holdings identified the stakeholders related to operations, then understood the topics concerned by the stakeholders with a high degree of relevance and evaluated the impact of topics on internal operations and the economy, environment, and society. Thus, WPG Holdings identified the main sustainability topics, disclosed information in this sustainability report, and responded to the stakeholders who were considerably concerned about the topics. At the same time, we continued to enhance the management of relevant topics and take specific actions to implement the Company's commitment to sustainable management.

  

  • Significance of Stakeholders to WPG Holdings

WPG Holding's major stakeholders are identified in accordance with AA 1000 stakeholder engagement standard which includes important factors such as Responsibility, Influence, Tension, Diverse Perspectives and Dependency. The questionnaire was completed by internal functional units. After analyzing the questionnaires, we screened out 6 kinds of important stakeholders, including Customers, Upstream Suppliers (IDM/Fabless/IC design), Employees, Banks, Shareholders/Investors, Government Institutions, etc.

  •  Analysis of Material Topics

In 2022, a list of sustainability issues was generated by taking into account the results of past issue analyses, GRI Standards themes, international trends, and industry characteristics. The Sustainability Committee invites the Chairman and CXOs of each group to assess the operational impact and major risks. Relevant opinions are integrated, the materiality matrix was completed in 2021, and 9 main topics were selected based on the "Level of Stakeholders' Concern for the Topic" and the "Level of importance of topics to WPG Holdings' operations", which includes Operating and Financial Performance, Corporate Governance, Information Security and Data Privacy, Product Distributorship and Customer Satisfaction, Risk Control and Management, Talent Attraction and Retention, IP Asset Management and Protection, Technology Empowerment and Digital Transformation, Smart Logistics and Smart Warehousing.

In order to accurately identify the impact of each issue on operations and to reflect the concerns and expectations of stakeholders, the methodology and steps for identifying material topics for the 2022 analysis are as follows:

  •  Amendment of the Main Topics

Compared with the 18 sustainable topics of the previous year, in 2022, WPG Holdings modified the details, merged, split, and changed the names in terms of economic, environmental, and social topics, and a total of 19 sustainable and operational-related topics have been compiled. The reasons for the adjustment are as follows:

Stakeholder Communication Mechanisms