Management Guidelines for Material Issues
Economic Impact Impact Identification Positive Amid the global shift toward decarbonization and following the integration of Future Electronics, WT is refining its operational strategies in alignment with macroeconomic trends and evolving market dynamics. The company remains focused on driving sustained growth in market share and profitability. Negative Failure to adopt emerging clean technologies and related products may hinder the company’s ability to meet evolving customer requirements and delay customers’ new product development timelines, thereby posing a risk to customer retention, business growth, and long-term competitiveness. Policy / Commitment Clean technology represents a strategic pillar of WT Microelectronic’s long-term operational development. In alignment with evolving industry trends and regulatory expectations, the company is referencing the latest Sustainable Economic Activities Recognition Reference Guidelines, Version 2, issued by the Financial Supervisory Commission on December 31, 2024. WT aims to gradually increase the proportion of revenue derived from activities recognized as sustainable under these guidelines. This strategic direction not only supports regulatory compliance and sustainable growth but also enhances the company’s resilience, market competitiveness, and appeal to long-term investors. Goals Short-term
(1-2 years)By 2026, the percentage of revenue from sustainable economic activities > 15% Mid-term
(3-5 years)By 2028, the percentage of revenue from sustainable economic activities > 18% Long-term
(5-10 years)By 2030, the percentage of revenue from sustainable economic activities > 20% Action Plans Enhance Positive Impact WT actively supports customers in adopting microcontrollers (MCUs) and microprocessors (MPUs) equipped with AI computing capabilities as the core of their systems, enabling the development of edge inference applications. These next-generation computing cores not only deliver enhanced intelligence, but also offer lower power consumption, improved security features, and extended product lifecycles. As large language models (LLMs) continue to evolve and scale in complexity—with rapidly increasing parameter counts—High Bandwidth Memory (HBM) and high-efficiency power management solutions have become critical to meeting performance requirements while managing energy consumption. WT continues to collaborate closely with suppliers and customers to introduce advanced, energy-efficient solutions in both areas to address growing market demand.
In parallel, the company is strengthening its R&D and design efforts around green technologies, aiming to deliver high-quality, sustainable solutions across industries. Emphasis is placed on modular, highly versatile, and reusable product architectures, promoting a design philosophy that accelerates innovation while enabling the development of green products characterized by low energy consumption, high efficiency, and long-term sustainability.Mitigate Negative Impact WT continues to introduce new original equipment manufacturer (OEM) suppliers and product lines, while actively expanding its customer base, application markets, and penetration across existing accounts. Achievements
Information Security Impact Identification Positive Leverage generative AI to help employees handle routine, highly repetitive tasks, such as translation, copy-writing, and data aggregation to boost work efficiency. Apply AI to analyze large volumes of logs, build behavior baselines and predictive analytics from users’ historical activities, and convert the results into quantitative employee-behavior data for security-incident assessment. This raises the ability to identify unknown events, shortens response time, and ultimately improves incident-handling effectiveness. Negative The World Economic Forum’s (WEF) Global Risks Report 2024 lists misinformation/disinformation, harmful consequences of AI, and cyber-insecurity among the top ten global risks for the next decade. In the past two years, AI-generated false or misleading information and cyber-insecurity ranked first and fourth, respectively. If employees cannot effectively detect, validate, and report AI-driven forgeries or if their security awareness is inadequate, financial or sensitive data may leak, leading to customer claims, order cancellations, reputational damage, or in severe cases, business interruptions, supply-chain breakdowns, or ransomware attacks triggered by phishing emails, causing further losses. Policy / Commitment Protect the confidentiality, integrity, and availability of our assets, thereby supporting the continuous delivery of products and services and fulfilling our sustainability mission and vision. （Information Security Policy） Goals Short-term
(1-2 years)Mid-term
(3-5 years)Long-term
(5-10 years)Action Plans Enhance Positive Impact Deploy an advanced SIEM (Security Information and Event Management) platform integrated with UEBA (User and Entity Behavior Analytics). Leveraging AI and machine-learning algorithms, the system learns continuously and refines detection accuracy, creating a more proactive and precise cyber-defense capability. Mitigate Negative Impact Achievements
Ethical Corporate Management Impact Identification Negative With WT Group’s consolidated revenue reaching NT$959.4 billion, whether senior executives and employees consistently uphold the principle of ethics in business transactions may significantly affect the Group’s partnerships with customers and vendors. As the Group continues to grow through mergers and acquisitions, WT now has employees across more than 40 countries worldwide. Insufficient awareness or promotion of ethics-related policies and measures may lead to unintentional violations by employees unfamiliar with applicable regulations, potentially undermining the rights and interests of shareholders, employees, and business partners. Policy / Commitment Integrity is WT’s most important core values and business philosophy. We establish a corporate culture of honest management to align with global corporate governance and anti-corruption frameworks.At present, Ethical Corporate Management Best Practice Principles and related regulations have been established. Goals Short-term
(1-2 years)Mid-term
(3-5 years)Long-term
(5-10 years)Action Plans Mitigate Negative Impact Achievements
Sustainable Supply Chain, Innovation Management, and Product Responsibility Impact Identification Positive In response to global sustainability trends and evolving environmental regulations, customers are accelerating the development of clean technology products and services. Products containing substances of concern or exhibiting low energy efficiency are gradually being phased out and replaced by alternatives that minimize environmental impact. This transition is driving a significant increase in demand for innovative products, new applications, and high-efficiency solutions. Negative Policy / Commitment Goals Short-term
(1-2 years)Mid-term
(3-5 years)Long-term
(5-10 years)WT aims to invest in system-level solutions by 2030, focusing on areas such as
renewable energy, energy storage, and power delivery both AC and DC to equipment
and electric vehicles. WT is also working to enable low-carbon mobility through the
implementation of wired and wireless battery management systems (BMS), as well as
high-efficiency motor control solutions for inverters.Action Plans Enhance Positive Impact Mitigate Negative Impact Achievements
Climate Strategies and Energy Management Impact Identification Positive Negative Policy / Commitment WT developed its 2050 Net-Zero Emissions Commitment and Decarbonization Pathways, which were approved by the Board and publicly announced in Q1 2024. The Group is committed to achieving net-zero emissions by 2050 by reducing GHG emissions and supporting the transition to a low-carbon economy. Goals Short-term
(1-2 years)Mid-term
(3-5 years)Long-term
(5-10 years)Scopes 1 and 2 GHG emissions reduction by 50% relative to 2022 by 2035, and achieve net-zero emissions by 2050. Action Plans Enhance Positive Impact Actively developing products for green energy, energy storage, and energy efficiency accelerates our expertise in new products and technologies. This allows us to provide clients with the best product portfolio for reducing environmental impact. By increasing the proportion of renewable energy used, we aim to boost customer satisfaction and become their strategic partner. Mitigate Negative Impact Achievements
Talent Attraction and Retention, Human Capital Development, and Diversity, Inclusion and Equity Impact Identification Positive Negative Policy / Commitment WT formulated and published on the official website after the Chairman signed the Social Policy and Code of Conduct as standards for all employees, customers, suppliers, and other stakeholders in compliance with the Universal Declaration of Human Rights, the United Nations Global Compact (UNGC), the ILO Declaration on Fundamental Principles and Rights at Work, and other international human rights conventions and initiatives.
In cases involving labor dispatch or contracted manpower, all vendor selection processes are conducted in full compliance with applicable local laws and regulations. WT strictly reviews suppliers’ qualifications and clearly stipulates their responsibilities regarding working conditions, compensation and benefits, and occupational safety to ensure that dispatched or contracted personnel receive fair treatment and that their labor rights are protected, thereby fulfilling corporate social responsibility.
WT places great importance on employees’ freedom of association and complies with the International Labour Organization (ILO) Conventions as well as local labor laws, respecting each employee’s right to freely join trade unions or other forms of employee representation organizations.
As of the end of the reporting period, 6.47% of WT employees were trade union members, and a total of 21.66% of employees globally were covered by formally elected employee representatives or collective agreements. This proportion includes employees in Taiwan under a labor-management meeting mechanism and unionized employees of Future Electronics.
To promote transparent and institutionalized labor-management communication, the Company organizes trade union representative elections in accordance with local regulations, ensuring that employee representatives are duly elected to participate in union-related affairs. WT views trade unions and employee representatives as indispensable partners in corporate governance. Through regular dialogue mechanisms, we aim to strengthen mutual trust and jointly realize the vision of social sustainability. WT maintains regular communication with employee representatives to ensure that employee voices are heard. For employees who are not union members, the Company actively engages through regular labor-management meetings and multiple communication channels to understand their views and needs, striving to establish a smooth, two-way communication mechanism and foster sound labor relations. It also has policies and regulations relevant to talent recruitment, training, and inclusive workplace in place.
Goals Short-term
(1-2 years)Mid-term
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(5-10 years)Action Plans Enhance Positive Impact Mitigate Negative Impact Achievements
Social Impact Impact Identification Positive WT Foundation: Advancing Education, Culture, and Sustainability • The WT Foundation, originally focused on supporting underprivileged groups in education, is expanding its mission to embrace diverse and inclusive cultural issues, sustainability, and international development. In 2024, the foundation was officially reclassified under the supervision of the Ministry of Culture, and formally renamed the WT Foundation. Through this transformation, the foundation aims to give back to more organizations in the cultural and educational sectors and promote sustainable development thinking across industries.• Guided by the principle of being a “key contributor at critical moments”, WT channels its philanthropic efforts through two independent initiatives under the WT Foundation.These initiatives integrate collaboration across industries—including upstream and downstream partners and customers—through the co-sponsorship and adoption of learning centers, reinforcing strong ties throughout the supply chain.• Through long-term, regularly scheduled online shared reading sessions, the foundation supports children by broadening their horizons through reading and helping them build confidence. Leveraging internet technologies, the program transcends geographical barriers and aspires to open children’s minds and lives through the power of reading.• The foundation also implements a photography-based care initiative, which provides children with aesthetic education, fosters self-confidence, and deepens their connection to their land and community through creative expression and storytelling.Negative Challenges and Risks in Social Contribution Initiatives • The funding for social contribution efforts is currently sourced solely from WT’s operating surplus. This single-source funding structure poses a risk to the long-term continuity and scalability of certain projects.• High volunteer turnover across various initiatives may impact the consistency and quality of program delivery, particularly in education-focused services.• Evolving environmental and social trends may influence the foundation’s future donation strategies, requiring regular reassessment and potential realignment of its funding and program focus.Policy / Commitment For more information about the two programs of WT Foundation, visit the official websites at Shining Hope / One-on-one Online Reading Goals Short-term
(1-2 years)∎ One-on-one Online Reading • Set up 1 to 2 new schools• Build fundraising capabilities, develop new fund donation channels, and call on WT Group’s midstream and downstream suppliers and customers to join the efforts• Leverage volunteer resources, including employee volunteers, school volunteers, social group volunteers, etc.∎ Shining Hope
• Promote the Shining Hope calendar fundraising project to make the children’s works more widely seen• Recruit local volunteers∎ Others
• Increase ESG-related fund donation• Leverage benefits of each program• Enhance philanthropic contributions to cultural industry developmentMid-term
(3-5 years)Long-term
(5-10 years)Action Plans Enhance Positive Impact Mitigate Negative Impact Achievements ∎ Remote Area Video Reading Companion Program
In 2024, the program was implemented in 8 learning centers, in collaboration with 21 partner organizations. The total number of participants served across all centers is as follows:
School WT Mailiao DBS Fenyuan Dyaco Erlin Pou Chen Shiou Shuei Puyong Yitzu Hsinyuan Penghu Tingfang Xinshe FANG-ZIH Sun Total Online Reading Program 40 40 30 34 32 40 30 32 278 persons 1,400 1,440 1,080 1,224 1,152 1,200 900 1,024 9,420 person times Reading partner meetup 56 52 35 42 38 50 45 41 359 persons Volunteer training 27 4 3 33 8 18 12 16 121 person times Christmas DIY 20 20 15 17 16 20 15 16 139 persons Total 10,039 person times
∎ Shining Hope Project for Remote Areas – 2024 Summary of Services
• Number of Participating Schools: A total of 12 schools participated: Hsinchu (1), Taoyuan (2), New Taipei (3), Yilan (4), and Hualien• Number of Volunteers: A total of 100 volunteers participated in photography sessions, supported by 7 lead instructors.• Volunteer Backgrounds: Volunteers came from across Taiwan, including Taoyuan, Taipei, New Taipei, Yilan, Hualien, Taichung, Kaohsiung, and Taitung. Their professional backgrounds included photographers, designers, nurses, financial professionals, social workers, psychologists, retired teachers, and others ineducation-related fields.• Total Instructional Hours: 2,268 hours were delivered. Each school received 9 lessons per semester, with each lesson lasting 90 minutes.• Social Media Reach: Facebook: 2,862 followers (+408 in 2024); Instagram: 2,223 followers (+644 in 2024)