Materiality Analysis

Materiality Management

Material Topic Identification Process

Collect sustainability issues

Based on the three key dimensions - Environmental (E), Social (S), and Governance (G), 17 sustainability issues were identified.

Survey on stakeholder concerns

A questionnaire survey was conducted among eight major types of internal and external stakeholders to understand their levels of concern for different issues.

Assess the external impacts

Members of the Sustainability Committee’s functional teams and the Sustainability Office evaluated the positive and negative impacts of each issue on the external environment, economy, and society.

Set management guidelines

Based on the above process, Inventec selected 10 material topics, which were approved by the Sustainability Committee and reported to the Board of Directors. Management guidelines and annual targets were established accordingly.

Conduct materiality analysis

Scores for stakeholder concern and impact levels were calculated respectively. The management team leaders were invited to assess the financial impacts, providing the basis for determining the materiality of each issue.

Rank positive and negative impacts

The impact levels were measured and a matrix was plotted to visualize the positive and negative impacts of each issue. It helped identify and rank the significance of the impacts for each issues.

Response to Material Topics

Environment (E)
Governance (G)
Society (S)

Material Topics	The importance of the topic	Achievements and Goals			Impacts on the Value Chain
Material Topics	The importance of the topic	2023 Achievements	2024 Goals	2030 Goals	Suppliers	Inventec	Customers
Climate change management	By managing green house gas emissions, we target to achieve carbon reduction goals, manage climate-related risks, and develop low-carbon opportunities to enhance business competitiveness.	Scope 1 and 2 carbon emissions decreased by 20.82% compared to 2020. We improved and integrated the Carbon Management System 2.0 to collect comprehensive upstream carbon data.	To achieve a reduction of 16.8% in Scope 1 and 2 carbon emissions compared to the base year of 2020. To continuously facilitate key supplier partners to pass SBTi carbon reduction target review.	To achieve a reduction of 42% in Scope 1 and 2 carbon emissions compared to the base year of 2020. To continuously collaborate with stakeholders across the value chain to reduce carbon emissions.	○	○	○
Energy management	Energy use not only impacts the operating costs of Inventec Group but is also a major source of GHG emissions. To manage energy expenses and reduce GHG emissions, Inventec monitors the efficiency of energy use in its operations and aims to increase the proportion of renewable energy use.	All 7 factories across the globe have obtained third-party ISO 50001 certification. 22 major energy-saving initiatives in 2023, resulting in an annual electricity saving of approximately 9.7276 million kWh. The Power Usage Effectiveness (PUE) for the data center at IET decreased from 1.72 in the base year (2019) to 1.65, representing a 4.07% reduction in PUE. Energy Intensity (EI) at major factories in China decreased by 25% compared to 2018.	To continuously evaluate the renewable energy market and installation requirements to further develop renewable energy plans. To monitor energy use in the operations. The proportion of renewable energy use is expected to reach 46% in 2025.	To expand the adoption and installation of renewable energy facilities, aiming to achieve a renewable energy proportion of 55% by 2030.	○	○	○

Material Topics	The importance of the topic	Achievements and Goals			Impacts on the Value Chain
Material Topics	The importance of the topic	2023 Achievements	2024 Goals	2030 Goals	Suppliers	Inventec	Customers
Digital empowerment	Inventec is dedicated to integrating 5G private network (5G private network telecom technology) with edge computing (Edge AI Computing applications), delivering digital transformation solutions for 5G smart factories.	Inventec has successfully implemented 5G private networks alongside various operational technology applications, such as AR smart inspections, Artificial Intelligence - Automated Optical Inspection, electronic fencing and other Computer Vision applications.	To integrate Indoor Positioning Systems (IPS) with applications, such as smart inspections, and connect them with digital twins to present end-to-end solutions for smart factories, further optimizing production and operational efficiency.	To comprehensively integrate communication technology and apply technologies and IT to optimize production processes and achieve green factory benefits.	○	○	○
Risk management	Through identification and response measures, we enhance the resilience of the Company. Additionally, we aim to establish a risk management model tailored to our company through a combination of topdown approaches and feedback mechanisms.	The operational status of risk management were reported to the Board of Directors and the Sustainability Committee on a regular basis. There were no risk incidents resulting in losses in 2023.	To establish a professional risk management operating model.	To improve the risk management framework and foster a sound risk culture.	○	○
Innovative R&D	Facing the challenges of rapid technological change, Inventec endeavors to manage globally intellectual property, and actively accumulates patent advantages to demonstrate innovation value.	Inventec has secured over 17,5000 global patents and continue to innovate and develop in AI, Industry 4.0 and 5G communications. We actively promote green innovation and explore new opportunities in healthcare and automotive electronics.	Cross-disciplinary collaboration: Leveraging the integration of various fields to create innovative technology products and services, such as the integration of AI, big data, and biotechnology.	To establish solid patent portfolio globally to cover techno logy domains such as mobile IoT, smart manufacturing, and smart cloud. To promote green innovation and green intellectual property.	○	○	○
Business ethics	Violations of business ethics will have a significant impact on the Company's operations and reputation. Effective controls through various policies and management systems should be carried out to avoid risk impacts on the Company's operations and reputation.	Suppliers' business practices were effectively monitored to ensure compliance with ethical standards. Inventec has established and implemented the Code of Conduct and management procedures. We have provided customers with integrity and quality services to maintain good relationships. Inventec achieved zero cases of business ethics violations, maintaining stable operations and sound reputation.	To continuously promote and improve various management systems, ensuring effective monitoring to prevent any instances of business ethics violations.	To deepen our trustworthy partnerships with suppliers and customers, and consistently achieve our goal of zero instances of business ethics violations.	○	○	○
Sustainability vision and strategy	Specific sustainability strategies are formulated to accomplish short-, medium-, and long-term goals over time.	The achievement rate of the action plans is 100%.	100% achievement rate for the action plans of the six major functional teams.	100% achievement rate for the long-term goals of the six major functional teams.	○	○	○
Stakeholder engagemen	Deepening relationships with customers and the supply chain, and transparently disclosing sustainability results.	The stakeholder concern survey and identification of material topics have been completed.	To continuously track and respond to stakeholder needs.	To continuously track and respond to stakeholder needs.	○	○	○

Material Topics	The importance of the topic	Achievements and Goals			Impacts on the Value Chain
Material Topics	The importance of the topic	2023 Achievements	2024 Goals	2030 Goals	Suppliers	Inventec	Customers
Occupational health and safety	Inventec has established a comprehensive occupational safety and health policy, and is committed to implementing risk control as the highest principle, supported by extensive training. The primary goal is to minimize occupational hazards across all factories through targeted action plans.	Disabling injury frequency rate: 0.41 Disabling injury severity rate: 18.31 All factories have obtained ISO 45001 Occupational Health and Safety Management System certification. ITO, TAO, IPT/SQT, ICC, ICZ and IMX have passed RBA Occupational Safety and Health Audits.	Disabling injury frequency rate < 0.7 Disabling injury severity rate < 27	Disabling injury frequency rate < 0.6 Disabling injury severity rate < 26	○	○	○
Talent attraction and retention	Recruiting talents through reasonable salary, job roles that offer challenges and growth opportunities, and good corporate image.	A total of 14,632 people were recruited. Internal employee replacement rate reached 6.86%.	To continuously strengthen campus recruitment efforts to attract potential talents. To recruit international talents to enhance research and development capabilities. To align with the Company's business strategy to cultivate top-notch technological talents.	To promote global talent recruitment to attract talents from various countries and enhance industry research and development capabilities. To build a comprehensive talent database to provide extensive resumes of outstanding talents.	-	○	○

Communication with stakeholders

Employees
Customers
Government agencies
Suppliers
Shareholders/Investors
Communities
Media
Research Institutes

Importance to Inventec

Employees are important assets of the Company. Inventec emphasizes on talent development and takes the initiative to care for the well-being and welfare of its employees to create a friendly and healthy workplace.

Communication/

Engagement Channels

and Frequency

Feedback and opinions are collected through employee care meetings, employee forums, supervisor forums, online communication platforms, and employee suggestion boxes, and communications are conducted accordingly as needed.
Labor-management meetings are held quarterly.
Monthly meetings are conducted to communicate the Company’s strategies and operational developments with employees.
The responsible unit periodically posts issues and solutions on the bulletin board.

Issues of Concern

Talent attraction and retention
Occupational health and safety
Training and development

Inventec’s Actions

In 2023, a total of 14,632 people were recruited, with an internal employee replacement rate of 6.86%.
Employee salaries are in compliance with regulations, with no gender or ethnic disparities.
A total of 15,913 employees completed the health examinations in 2023, with no recorded cases of occupational diseases among employees.
The average training hours per person reached 37.85 hours in 2023.

Importance to Inventec

The Company’s revenues are coming from the customers. Inventec continuously strives to improve customer satisfaction by understanding and promptly meeting their needs, thus increasing the value of our partnership.

Communication/

Engagement Channels

and Frequency

Each responsible unit responds to the standards, audits, or questionnaires requested by the customers as needed throughout the year.
The responsible unit fills out the SAQ questionnaire on the RBA-Online Supply Chain & CSR Management Platform every year.
Project meetings are held as needed.

Issues of Concern

Sustainability vision and strategy
Diverse talents and equal opportunity
Occupational health and safety

Inventec’s Actions

Inventec has set short-, medium-, and long-term goals for functional teams, and has put sustainable development into practice.
Female managers accounted for 25.16% of the total, with female managers in the business units representing 46.9% of all managers in the business units, demonstrating Inventec's diverse talent policy on the basis of meritocracy.
All factories have obtained the certification for Occupational Health and Safety Management System (ISO 45001).

Importance to Inventec

The government plays a crucial role in setting regulations for businesses and providing resources to support them.

Communication/

Engagement Channels

and Frequency

Pursuant to the regulations, the responsible unit discloses information on the Company’s website, uploads the annual report and sustainability report, and provides related information on the Market Observation Post System during the year.
The relevant units cooperate with the regulatory authorities to facilitate their factory inspections, and conduct fire drills as well as emergency response exercises as required during the year.
In line with the reporting requirements, the responsible unit checks whether the Company has complied with various environmental laws and regulations, and collect statistics on relevant environmental protection data throughout the year.
The relevant units participate in government policy promotion events, projects, and activities as needed.

Issues of Concern

Environmental sustainability
Occupational health and safety
Sustainability vision and strategy

Inventec’s Actions

TAO obtained UL 2799 platinum certification.
Environmental expenditures in 2023 totaled NT$199 million.
A total of 15,913 employees completed the health examinations in 2023, with no recorded cases of occupational diseases among employees.
Inventec has established a sustainability vision: “Sustainability x Innovation - For Now and the Future”, and has set seven-year goals.

Importance to Inventec

The Company’s raw materials are sourced from the suppliers. With a spirit of mutual benefit, we share our experience and collaborate to create a high-quality supply chain.

Note: Contractors include manpower agencies, service outsourcing companies (security, cleaning and catering), waste disposal services, and plant construction contractors.

Communication/

Engagement Channels

and Frequency

Inventec organizes sustainable supply chain forums and conducts questionnaire surveys on a regular basis.
Inventec provides timely explanations on workplace safety and conducts on-site interviews as needed.
Inventec responds periodically through the supplier website.
Vendor exchange seminars and conferences are held periodically as needed.

Issues of Concern

Occupational health and safety
Sustainability vision and strategy
Talent attraction and retention

Inventec’s Actions

All factories have obtained the certification for Occupational Health and Safety Management System (ISO 45001).
In 2023, there were no occupational accidents involving suppliers, contractors, or dispatched workers.
Inventec has established a sustainability vision: “Sustainability x Innovation - For Now and the Future”, and has set seven-year goals.
In 2023, a total of 14,632 people were recruited, with an internal employee replacement rate of 6.86%.

Importance to Inventec

Shareholders provide the primary source of working capital for the Company. In order to maximize shareholders’interests, Inventec manages its funding effectively and strives for mitigating its operational risks.

Communication/

Engagement Channels

and Frequency

Information is shared through shareholders’ meetings, investor conferences, shareholder manuals, financial reports (monthly/quarterly), annual reports, the Company’s website, and news media on a regular basis.
Inventec holds at least one shareholders’ meeting annually and conducts investor conferences quarterly.

Issues of Concern

Climate change management
Sustainability vision and strategy
Business ethics

Inventec’s Actions

Scope 1 and Scope 2 carbon emissions decreased by 20.82%
compared to 2020.
Inventec has completed the formulation of sustainability vision, strategy, and short-, medium-, and long-term plans for functional teams.
In 2023, there were no incidents or penalties related to human rights violations, corruption, or unfair competition.

Importance to Inventec

Inventec maintains continuous interaction with the community, aiming to minimize the impact of its operational activities. Inventec is committed to building trust and fulfilling its social responsibility.

Communication/

Engagement Channels

and Frequency

Joining hands with the Inventec Group Charity Foundation, Inventec responds to community issues through the website, visits and telephone interviews, and participates in exchange activities periodically.

Issues of Concern

Innovative R&D
Digital empowerment
Energy management

Inventec’s Actions

R&D expenditure in 2023 amounted to NT$11.3 billion.
Inventec successfully implemented 5G private networks and various Operational Technology (OT) applications.
The renewable energy usage target is set to reach 55% by 2030.

Importance to Inventec

It is vital to maintain good interaction with the media as it serves as a crucial channel for communicating with stakeholders.

Communication/

Engagement Channels

and Frequency

Inventec periodically collects news and responds to questionnaires.
Important information is published on the Market Observation Post System and the Company’s website as needed.
Participation in competitions and exhibitions.
Social media management.

Issues of Concern

Business ethics
Labor rights and communication
Risk management

Inventec’s Actions

In 2023, there were no incidents or penalties related to human rights violations, corruption, or unfair competition.
Inventec has completed and published the 2023 human rights due diligence report.
There were no risk incidents resulting in losses in 2023.

Importance to Inventec

It serves as an important channel for exchanging industry-specific information, which can help the Company enhance its competitive edge.

Communication/

Engagement Channels

and Frequency

Inventec periodically collects reports from research institutes, arranges their visits and telephone interviews, and participates in surveys as needed.
Project collaboration.

Issues of Concern

Sustainability vision and strategy
Digital empowerment
Environmental sustainability

Inventec’s Actions

Inventec has completed the formulation of sustainability vision, strategy, and short-, medium-, and long-term plans for functional teams.
Inventec successfully implemented 5G private networks and various Operational Technology (OT) applications.
TAO obtained UL 2799 platinum certification.