Corporate Sustainability Management
▶️Governance Structure and Reporting Mechanisms ▶️Corporate Sustainable Development Goals
The WPG ESG and Sustainable Development Committee (hereinafter referred to as “the Sustainability Committee”) is the highest steering body for sustainability operations of WPG Holdings. The Chief Sustainability Officer of the holding company serves as the Committee convener. All of the Committee members consist of directors, including the Chairman of the Board of Directors, the Chief Executive Officer and an independent director, in order to drive the setting of the Group’s overall sustainability goals and execution of concrete action plans effectively, and incorporate ESG concepts into business strategies to demonstrate the determination for sustainable operations. Every year (at least once a year), the Committee reports to the Board of Directors on the ESG implementation plan and promotion results.
Resolutions on Sustainability Matters
The ESG Committee was convened four times in 2023,with a 100% attendance 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. In 2023, it submitted four times to the Board of Directors, including: (1) progress reports on key ESG projects (including Material Topics); (2) progress reports on the WPG’s greenhouse gas inventory planning and progress; (3) domestic and foreign sustainable development trend and policy; (4) establishment of annual objectives. The responsible unit is responsible for proposing amendments to sustainability-related policies.
Sustainability Committee Functional Groups
There are five functional groups under the ESG Committee, namely the “Corporate Governance Group”, “Environmental Sustainability Group”,“Sustainable Talent Group”, “Social Welfare 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 integrating them into daily operations effectively. 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.
Stakeholder Identification and Communication
Identifying precisely each stakeholder’s concerning topics and continuing to communicate with the stakeholders with transparency and efficiency are the foundations for the sustainable operation and long-term development of WPG Holdings. 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.
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 Institution, etc.
Analysis of Material Topics
To ensure that the disclosed information meets the stakeholders’ expectations, WPG Holdings adopted a systematic analysis every two years to identify material sustainability topics. Meanwhile, considering that the industry overview, the business type and the organizational structure of WPG Holdings remained unchanged and no changes were significant to affect the identification on material topics in 2023, the stakeholders and material topics for 2022 still applied. The list of sustainability issues was generated by taking into account the results of past issue analysis, themes under the GRI Universal Standards 2021, international trends, and industry characteristics. The Sustainability Committee invited the senior executives at the level of CXO and above in WPG Holdings and each group to assess the operational impacts and significant risks. Based on the “degree and occurrence probability of actual and potential impacts on the environment, economy, and people (including human rights),” the “level of stakeholders’ concerns about the topics,” and the “level of importance of topics to WPG Holdings’ operations,” stakeholders’ opinions were collected and integrated to complete the matrix of material topics for the year.
Analysis Methods and Steps for Material Topics
In order to accurately identify the impact of each issue on operations and to reflect the concerns and expectations of stakeholders, the methods and steps for identifying material topics adopted are as follows:
2023 Material Topics and Basic Topics
According to the above analysis, the matrix of material topics and a bar chart of operational impacts generated in 2022 was still applied in 2023 to illustrate the material topics, which serves as the basis for this report. The performance and management results related to each material topic were viewed as a strategic target for sustainable management planning and practice in 2024. The following 9 topics are WPG Holdings’ material topics, including 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, Technological Empowerment and Digital Transformation, Smart Logistics and Smart Warehousing.
Stakeholder Communication Mechanism