In the face of the global focus on ESG, sustainability is our daily pursuit. As a link in the supply chain, we advocate to avoid harming the earth, strive to coexist with the environment, and expand our enterprise’s care for our planet’s sustainability.
WT follows the GRI Sustainability Reporting Standards for reporting principles to manage sustainability issues. Major stakeholders were identified, material issues determined, and the organizational boundary defined through a six-step engagement process in compliance with the principles of stakeholder inclusiveness, sustainability context, materiality, and completeness.
WT continues to involve stakeholders to ensure a communication and response mechanism is in place for sustainability issues. WT followed the principles of AA1000 Stakeholder Engagement Standard, which are impact, materiality, inclusivity, and responsiveness, to identified key stakeholder groups. An evaluation and discussion by WT’s functional executives involved in the sustainability effort concluded that the operating environment in 2022 was not significantly different from that in 2021, and that the key stakeholder groups were therefore the same as identified previously, which are shareholders/lenders, customers, employees, vendors, and other suppliers.
This report was first released in 2017 and an annual report has since been regularly released each year. This report presents the overall economic, social and environmental performance of WT group’s operating bases in Taiwan as well as subsidiaries in Hong Kong, Shanghai, Shenzhen, South Asia, Korea, and Japan, throughout the period from January 1st to December 31st, 2022. The disclosure covers all the entities included in the group’s consolidated reports and is divided into major operating regions of Taiwan, Hong Kong, China, South Asia, South Korea, Japan. In cases where the data disclosed do not cover all the entities, a note is added to describe the scope of the particular disclosure. The respective disclosure scopes of all items are provided in “6-9 Disclosure Scope” as well. In addition, in view of comparability of information, only the data of the recent five years are disclosed in principle. In cases where the relevant performance information has not been systematically collected or the accuracy of the information can not be validated or verified, only the data of one to three years are disclosed.
WT recruits talents aligned with WT’s core values vie multiple channels including job bank websites, online platforms (such as LinkedIn, CakeResume, Blink, etc.), campus career centers, partnerships with universities, colleges, departments, as well as internal referrals. A complete training and development plan is provided to ensure talents translate learning into performance effectively, and thereupon build a talent pool ready for a rapidly-changing future.
In response to the rapid development, WT secures a competitive edge for the future by keeping a talent pool in line with the group’s long-term development strategy, and an optimized array in terms of level, number and structure. By the end of 2022, after the acquisition of one subsidiary, the number of WT Group employees has grown to 3,547, an increase of 983 employees, or 38.34%, compared to 2021, of which women accounted for 41.98%. Women accounted for 30.07% of managers, 28.05% of mid-level managers or above, 23.50% of business supervisors, and 45.15% of non-executive personnel. Women also accounted for 15.85% of STEM employees (science, technology, engineering, or mathematics). Overall, the proportions of females in all employees and management were both slightly higher in 2022 than that in 2021.
To provide a better career pathway program, WT launched the “Want Talent” elite training program and recruited selected new graduates for the program. In addition to soft skills and technical courses, job rotation training and participation in important projects and large-scale conferences are organized for them to gain a comprehensive understanding of the core concepts of the company’s operation. Furthermore, senior executives and the human resources department will regularly show care for employees, provide career guidance, and plan individual advancement goals and development, so that they may be in a changing and challenging work environment. At the same time, salary adjustment and rank promotion has been made according to performance and market standard of the individual, providing market competitive salary and fair benefits. As of the end of 2022, a total of 28 employees have been trained in the program.
With the advent of the digital era, WT introduced the WT e-Learning Academy, a digital learning platform that combines online and in-person learning. Over the past three years, due to the pandemic, learning styles have changed and the proportion of digital learning has increased. Based on WT’s training and development plan, WT e-Learning Academy has established courses in five categories, combining e-newsletters, knowledge center, and online courses to integrate internal and external resources and enrich the platform’s contents, while becoming a platform for linking WT’s knowledge transmission and communication. WT will continue to refine and hold regular course planning workshops in the hope of providing richer training resources to all employees through continuous innovation.
WT values the welfare and rights of its employees and actively promotes harmonious relations between management and labors. Work rules and various management regulations have been formulated in accordance with the Labor Standards Act and relevant laws and regulations, and the Code of Practice for Sustainable Development has also been formulated to specify the rights and obligations of both employers and employees in management matters, so that employees can fully understand, comply with, and protect their legitimate rights and interests. In the case of any major changes in the operating conditions that may affect employees’ rights and interests or work environment, WT informs employees within the statutory minimum notification period in order to protect employees’ rights and interests.
WT follows international human rights conventions and initiatives such as the Universal Declaration of Human Rights, the United Nations Global Compact (UNGC) and the Declaration of Fundamental Principles and Rights at Work issued by the International Labor Organization (ILO). We have formulated a Social Policy and Code of Conduct, which was signed by the Chairman and published on the company’s official website as a standard for all employees, clients, suppliers and other stakeholders to follow.
The Board of Directors is WT’s highest governance body. The tenth Board was elected on May 20, 2022, is composed of seven directors, of which four are Independent Directors. In order to strengthen the sound development of corporate governance, the policy of diversity is implemented in accordance with the Code of Practices for Corporate Governance formulated by WT. Of the Board Members, there are three Independent Directors (43%), three women (43%), and two employees (29%). In addition, four of the current directors are aged from 51 to 60 years old, one from 61 to 70 years old, and two from 71 to 80 years old.
The Board of Directors meets at least once a quarter to monitor the achievement of the Company’s operational goals and performance, provide strategic guidance to the management team, and oversee the Company’s compliance with laws and regulations to ensure the best interests of shareholders. In fiscal 2022, the directors’ attendance rate at the thirteen Board meetings was 98.9% on average, and the Independent Directors’ was 100%. Conflicts of interest with directors are avoided in accordance to the provisions of Article 15 of WT’s Board of Directors’ Rules of Procedures. Meeting items involving a director’s interests are disclosed in the annual reports, with the names of the director involved, the content of the item, and the reasons for avoiding conflicts of interest. In addition, information such as cross-shareholding with a stakeholder, the existence of a controlling shareholder, and related party transactions are all disclosed in the annual report to avoid or reduce the possibility of conflicts of interest.
In order to implement corporate governance, improve the function of the Board of Directors, and establish performance goals to strengthen the operational efficiency of the Board of Directors, WT has formulated the Performance Evaluation Measures for the Board of Directors in 2016, which clearly stipulates that the Board of Directors and the functional committees should routinely conduct internal self-assessment every year. An assessment evaluation must also be preformed once every three years by an external professional independent organization or an external team of experts and scholars. The assessment results must be reported to the Board of Directors, and be used as a reference to determine individual directors’ remuneration payment and nomination
The fourth Remuneration Committee is composed of two Independent Directors and one member fulfilling the requirement of independence. As the Board was re-elected by the shareholders’ meeting on May 20, 2022 and all the previous members left the Board on the same day, the Board reappointed the three Independent Directors to make up the fifth Remuneration Committee on May 31, 2022. The purpose of the Committee is to make objective and professional recommendations to the Board, taking into account the Company’s operational performance, and to assist the Board of Directors in implementing and evaluating the Company’s overall compensation and welfare policies. In addition, the remuneration of directors and managers is determined and reviewed in accordance with the Procedures for Remuneration of Directors and Functional Committee Members and the Procedures for Remuneration for Managers as necessary to strike a balance between sustainable management and risk control. In 2022, a total of three Remuneration Committee meetings were held with all members having a 100 percent in-person attendance rate.
WT, believing that the stability and growth of the supply chain is the key to the success of sustainable operations, has formulated the Supplier Code of Conduct to regulate suppliers’ compliance with laws and regulations in such aspects as labor rights, health and safety, ethics, and management systems, and requires new suppliers to fill out the Supplier Self-Assessment Form based on facts and sign the Supplier Corporate Social Responsibility Commitment Letter. In 2022, the return rate of general suppliers in Taiwan was 100%. In order to fulfill the responsibility of procurement management, and supervise and evaluate in a timely manner, WT has a reasonable expectation to work with suppliers to jointly undertake the responsibility of sustainable operation.
From 2022, all suppliers (other than vendors) with an annual transaction amount totaling more than NT$1 million or more than 12 transactions are subject to an annual assessment on their quality, technologies and finance, as well as such areas as social responsibility, labor practices and environmental protection. Of the 85 suppliers assessed, none were rated grade D (suspension of transactions), and the overall average score was 84.05 points. Incompetent suppliers were suspended and offered counseling and guidance to bring the performance up to the expected level. WT works with the suppliers for continuous improvement and advancement by abiding by assessment cycle and counseling mechanism to ensure prompt detection of potential problems.
In view of the growing importance of information security and increasingly rampant cyber attacks, WT set up a dedicated Information Security Department and installed a Chief Information Security Officer at the level of deputy general manager in 2022. The Department, composed of one dedicated director and two dedicated personnel, is responsible for information security incident investigations, system vulnerabilities disclosure, and new information security architecture evaluation and introduction, etc. The main tasks that have been completed are as follows:
1.The ISO/IEC 27001:2013 and CNS 27001:2014 verifications were obtained in 2022 (valid until October 31, 2025), and the threats and impacts posed by information security incidents were reduced through standardized and systematic control and management;
2.A dedicated information security mailbox was set up to receive external information security notifications from customers, suppliers, integrated cyber threat intelligence providers, information equipment suppliers, service providers, etc.
3.A dedicated person was appointed to collect, analyze and keep record of information on important information security news, vulnerability releases, zero-day attacks, and vulnerability utilization trends, and rate incidents for severity. Incident severity levels have been internally defined. The contact person in the information division keeps record of incidents, and, in the case of a major information security incident, immediately notify the Chief Information Security Officer. The Information Security Department must verify, eliminate and resolve the information security incident within the target processing time. After the handling is completed, the Incident Response team (IR team) must conduct root cause analysis, track and record the implementation effectiveness of corrective measures, so as to continuously improve the intervention methods and prevent recurrence of similar incidents. In addition, information security incidents have been divided into four severity levels, and their response mechanisms and standard operating procedures are formulated respectively to speed up the recovery time of information system services.
The pandemic hit the world and changed the way we live and work. Working from home and mobile office have become normal. Corporate information security is exposed to breaches when employees are not working in the secure environment of the Intranet. Strengthening employees’ awareness of information security has thus become crucial to information safety. Social engineering exercises were introduced in 2021 to integrate security awareness into daily work for early threat detection and intervention. In 2022, social engineering exercises and training continued on a monthly basis with randomly selected scenarios. Those insufficiently aware of information security were trained again and reported to their direct superiors, and their training results tracked regularly. In 2022, 118,297 social engineering exercise letters were sent, and the proportion of employees who were phished in the exercises dropped from 1.1% in 2021 to 0.7% in 2022. in October 2022, a refresher training on information security awareness was organized for all the Group’s employees. Of the 2,552 employees required to complete the training, 19 dropped before it ended. They either applied for leave without pay, began maternity leave, or departed the Group. A total of 2,533 completed the course and passed the test (100% pass rate). Note that the employees of Excelpoint Technology were not on the training list as the merger happened in September 2022 and the integration was not yet completed. One session of intensive training for core system related personnel and supervisors was also completed.
To address the increasingly serious problem of global warming, WT follows the national overall GHG reduction strategy towards the sustainable development goal of energy conservation and carbon reduction Since 2018, WT has been developing, pursuant to ISO 14064-1:2006 Part 1: Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals, and the Greenhouse Gas Protocol, a comprehensive inventory of GHG Scopes 1 and 2 emissions. The inventory is verified by a third party to assure its accuracy and reliability every year. With 2018 as the base year, WT promised to reduce the intensity of its Scopes 1 and 2 GHG emissions by 1% every year, and keep its management policies updated according to the reduction situation.
In 2022, a GHG Inventory Task Force meeting was convened in accordance with the ISO 14064-1:2018 Greenhouse Gases to identify major indirect emission sources of the year. The meeting resolved that the indirect GHG emissions from purchased electricity (Category 2: Capital Goods) and upstream transportation and distribution (Category 4) were to be included within the boundaries, and the base year changed to 2022 after Hong Kong and Singapore Logistics Centers were included within the organizational boundaries. A higher target was also set and a promise made to reduce the annual GHG emissions by 2% compared to the base year. In 2022, the voluntary inventory was extended to include operating bases in China, Hong Kong, South Korea. A voluntary GHG emissions inventory covering all operating bases of the Group is planned to be completed by 2025, with the third-party verification completed by 2027 at the latest.
The market is changing constantly with new and different product applications. In response, product design must not only take into account the cost, function and quality of a product, but also the innovation of and solutions with new technologies and materials, as well as the impact of the product on the environment. In addition to maintaining a product portfolio with new technologies and high efficiency, WT also gives priority to assisting customers in adopting systematic solutions that can improve product energy efficiency, and using components containing no harmful substances, so as to meet the requirements of energy saving, carbon reduction, and environmental protection.
Semiconductor components are crucial to electronic products. In alignment with the green design thinking, WT further promotes highly efficient green semiconductor components with reduced energy loss, so that the customers may design and produce from a forward-looking and sustainable perspective environmentally friendly, high quality products with reduced energy consumption and of high energy efficiency .
Meanwhile, all logistics center operations have been integrated with advanced logistics information systems, enabling paperless electronic operations.