Focus on conflict minerals and due diligence

Conflict Minerals Statement
“Conflict minerals” sourcing form the Democratic Republic of the Congo (DRC) and adjoining regions(Angola, Burundi, Central African Republic, Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda and Zambia), as well as disputed areas where their extraction of gold, tin, tungsten, and tantalum (3TG) and cobalt may unexpectedly finance or benefit armed groups associated with human rights violations. Some of these minerals might be involved in the supply chains of the electronics industry. To address this issue, PEGATRON has launched conflict mineral due diligence investigation project since 2012. PEGATRON encourages our suppliers to transparently disclose the conflict minerals and cobalt containing in their products and components in accordance with the OECD Guidance. We expect our suppliers to cooperate in providing the report of smelters information with the Conflict Minerals Reporting Template (CMRT) of gold, tin, tungsten, and tantalum and Cobalt Reporting Template (EMRT) of cobalt in our supplier chain. Besides, Pegatron do not ban conflict-free minerals (including cobalt) from DRC and adjoining regions, and advocates RMI Compliant Smelter & Refiner Lists in our supply chain, so as to drive the smelters to join Responsible Minerals Assurance Process (RMAP; formerly the CFSP). PEGATRON respects international human rights and keeps following this issue closely to fulfill our commitment and Responsible Business Alliance (formerly EICC) Code of Conduct, and take the accountability as a corporate citizen.

From business ethics to corporate sustainability

Business Ethics
PEGATRON is committed to upholding the strictest business ethics. All employees should abide by the highest standards of probity. Any kind of corruption, blackmail or embezzling of company funds is strictly prohibited. All staff in their work should abide by the following principles:
• All staff shall be honest and fair in their dealings with customers and vendors.
• It is strictly prohibited for staff to receive or claim directly or indirectly for gifts, favorable dealings or other special treatment as an abuse of the powers of a position.
• It is strictly prohibited for staff to use the powers of a position to receive or claim directly or indirectly unreasonable interest or other corrupt practices.
• It is strictly prohibited for staff to extort property by the abuse of the powers of a position.
• It is strictly prohibited for any unauthorized use of the name of the company other than in business related matters.
• It is strictly prohibited to embezzle the company’s property for personal interests.

Corporate Energy Conservation and Carbon Reduction Goals

In response to the growing problem of environmental warming, we are making efforts to reduce greenhouse gas emissions during the manufacturing, distribution and use of our products through environmentally friendly design and green manufacturing, as well as implementing energy-saving actions in our day-to-day management. Pegatron is committed to addressing the issue of global climate change and has actively taken steps to reduce greenhouse gas emissions (GHG) by means of eco-friendly designs and manufacturing process. In response to the Science Based Targets initiative (SBTi), we pledge to set four energy-saving and carbon reduction goals.

1. Reduce Scope 1, 2 and Scope 3 category 1a (purchased goods and services (product)) GHG absolute emissions 42% by 2030 from a 2021 base year.
2. 25% reduction in electricity consumption per unit of revenue from 2021 levels by 2030.
3. Achieving a target of 50% renewable energy usage by 2030.
4. Reach Net Zero by 2050.

Corporate Water Conservation Goal

Pegatron's production processes are mainly based on assembly, there is no need for large amount of process water. The most water used is for domestic use. Currently, the main source of water used for each site is tap water, which does not cause obvious environmental impact on the ecological environment. Nevertheless, in response to the challenges raised by global climate change, Pegatron still actively promotes related water conservation activities to enhance the efficiency of water usage, setting an annual water intensity (water usage per million NTD in revenue) reduction target of 1% each year and continuing to track and disclose its water-saving performance annually.

About PureCSR

Implement PureCSR to achieve sustainable management

In our PureCSR, P represents PEGATRON, u means unlimited & universal, and re means reduce, reuse, recycle, recovery, replace & repair, which indicates that we will work to continuously improve and become a completely eco-friendly enterprise. PureCSR aims at the establishment and implementation of the environmental, occupational health and safety policy. This policy complies with the RBA (formerly EICC) Code of Conduct which covers labor practices, health & safety, environmental protection, management systems and ethics. We hope that our environmental, occupational health and safety management systems continue to operate and be improved, and that we can create favorable conditions for sustainable management.

PEGATRON’s corporate social responsibility is planned, operated and implemented by the PureCSR committee. All members identify stakeholders according to their jobs and respond to any concerns in daily operations. Any inter-departmental issues are discussed in PureCSR committee meetings to reach a consensus among related departments. The CSR team has been set to manage the CSR related issues and coordinate the cross-department issues via bi-weekly PureCSR Steering Committee meetings, so as to reach CSR goals and programs. CSR implementation status is periodically reported to the CEO and the significant CSR practices and performance reported to the company’s board of directors on November 14, 2023. it reported to the board of directors on the promotion of sustainable development, the communication with stakeholders, and the operation of risk management, including the status of 15 sustainability indicators and the highlights of annual sustainability performance. Through which the board of directors supervises the feasibility of sustainable development management strategy, and request to review items for improvement if necessary. There are no doubts or suggestions for changes in the sustainable development indicators, risk management implementation and other proposals from the board of directors.