From the Management Team

The negative impacts of the COVID-19 pandemic on global economic activities since the end of 2019 have far exceeded expectations. The social distancing measures implemented by many countries had severely affected global supply chains, and also brough great shocks to the labor market. However, with the high demand for NB driven by new lifestyles such as remote work and distance learning, Chicony's sales of NB parts/components/products, including keyboards, video/image products, camera modules, etc., grew significantly last year.
When pursuing company’s revenue and profit growth, Chicony is also committed to promoting the concept of corporate social responsibility associated with "environmental, social and corporate governance" in many aspects because we believe that an enterprise should not only keep progressing and growing for itself but should also gradually facilitate the realization of corporate sustainability and responsibility, and actively exert positive influence to create the value for its sustainability.

Corporate Governance
Being driven by Chromebook, the NB market played an important role in the first half of 2021. Commercial laptops continued this role in the second half of the year, making the sales of commercial backlit NB keyboards increase significantly and the unit price of keyboards rise in the second half of the year. The sales of video/image products and camera modules were also booming. In 2021, with excellent and efficient manufacturing planning, Chicony Electronics responded to changes in market demand in a timely manner and provided customers with the products they needed, by which the annual revenue increased by 13%, exceeding the Company's estimated annual growth rate. With steady business growth, Chicony Electronics has been included in TWSE's "Taiwan Sustainability Value Index" and selected as a constituent of "TIP Taiwan Market CSR Small/Mid-Cap Index" for the first time, indicating the external recognition of the Company’s efforts in sustainable development and corporate social responsibility. We have been included as a constituent in TWSE’s "Taiwan Mid-Cap 100 index", and have been selected as a constituent of FTSE4 Good Index. The 2021 EPS was NT$8.71, with revenue, gross profit, and operating profit all hitting record highs again.

Green Product Design and Sustainable Value Chain
Chicony Electronics is committed to introducing green thinking to all stages of new product development to comply with the primary goal of "developing energy-efficient products, implementing environmental regulations, and reducing environmental impacts", and demands that the finished products should comply with the environmental laws and regulations of various countries such as RoHS and the use of "Halogen Free materials" or be certified by a third-party impartial organization to fulfill corporate social responsibility and achieve the goal of sustainable operation and environmental sustainability. Chicony Electronics supports the concept of resource recycling and actively uses "Post-Consumer Recycled Plastics (PCR)" in products, which not only facilitates the utilization of recycled plastics in production but also reduces impacts on the environment through the reduction of plastic waste in landfills. Currently, two of Chicony Electronics’ four major product lines—input device products and mobile keyboard modules have started increasing the use of recycled plastics in production, achieving a rate of 41% for the product category with the highest percentage of use.

Environmental Protection and Sustainability
Chicony Electronics believes that climate change is one of the major risk factors affecting business operations. From 2010 onwards, the Company submits the Carbon Disclosure Project (CDP) questionnaire every year as a response to international investors’ concerns on the Company’s climate governance. We were given a Management Level Grade B in 2021. When facing the global climate extremes and anomalies, the response to internal operational impacts caused by climate/natural environment deterioration is also one of a company's responsibilities for sustainable operations. The Company joined the TCFD and SBTi initiatives in May 2021, and formulated energy saving and carbon reduction quantitative management goals for the next ten years. In addition to strengthening the resilience and adaptability to climate change and reducing the possible impacts caused by disasters, Chicony Electronics also strives to mitigate the impacts of greenhouse gas emissions on the external environment. With the aim of actively managing climate issues, Chicony Electronics set up an inter-departmental Climate Change Working Group in 2020, taking the responsibility for identifying climate risks, and assessing and responding to climate impacts within their respective responsibility scopes. The Group reviews and tracks material risk and opportunity items on an annual basis, and regularly submits relevant data and reports to ESG Committee.

Employee Care and Community Participation
Chicony Electronics has employees all over the world. We are committed to actively creating a healthy environment suitable for employees' work and life, and promise to offer employees comprehensive care. By upholding the belief of "Take from society, give back to society", Chicony makes donations in the name of the company, and actively participates in activities to support disadvantaged groups. This is exactly the company's belief that corporate sustainability responsibility should include a commitment to society and the community. Therefore, in addition to the various charitable activities promoted by the company, many employees also voluntarily founded "People Caring Club", which collaborates with the external charitable activities in the hope of integrating and exerting the company’s resources to give back to the society and to expand the influence on the social value system. In terms of talent development, the Company has established a learning blueprint with different modules, together with arrangements such as OJT, job rotation, knowledge sharing, soft power cultivation, etc. to create Chicony’s competitiveness. We also value employees’ suggestions and needs, and set up various communication channels for employees to understand the Company's ongoing and real-time status, and to express their opinions or concerns regarding work and workplace. Moreover, we demonstrate Chicony Electronics' corporate social responsibility through industry-academia collaboration and the support of disadvantaged groups.

Safe Work Environment
Chicony is committed to building a safe workplace in accordance with various standard procedures required by ISO 45001:2018 Occupational Safety Management System to enable every employee to work under safe conditions. The Company has established various standard operating procedures for workplace safety and employee health management. Besides, regular educational training on safety and health and simulation exercises aiming at the education, training and promotion of management related to work environment, equipment and hazardous substances are held to ensure the safety and health of employees. In addition, regular safety workshops and health care services are also organized for different work environments. "Improving the safety and health of work environment; protecting employees safety and reducing occupational injuries" is always a principle upheld by Chicony. Therefore, a "Safety Officer" mechanism has been established in the Headquarters and all factories to carry out regular inspections and step-by-step improve employees’ work environment for employees to commit themselves in the workplace without worrying. Moreover, the Company demands that every part of the production must strictly abide by the safety operating standards, employees’ safety awareness must be reinforced, and workplace safety should never be overlooked, thereby ensuring every employee’s safety and health in the workplace.

Environment Protection

ESG Commitment and Guidelines

ESG Commitment and Guidelines
- Create corporate value to enhance the interest and returns of investors and stakeholders.
- Maintain sound corporate governance, uphold morals and ethics, and comply with law and regulations.
- Provide a safe and healthy working environment and encourage employees to engage in social welfare activities.
- Join with our partners and customers in promoting social responsibility and creating a sustainable value chain.
- Develop green energy-saving products and follow friendly-environment practices, to reduce environmental. impact.

Chicony Electronics' ESG Vision and Goals

Chicony Electronics' ESG Vision and Goals

Human Rights Policy

Human Rights Due Diligence Investigation

Human Rights Risk Identification and Mitigation
The Company has formulated procedures for human rights due diligence investigation to carry out the Human Rights Policy: Identify potential human rights risk issues, conduct risk assessments, and formulate and implement risk mitigation measures and remedial measures based on assessment results to reduce the impact of human rights risks, and to realize human rights policy commitments.

The procedures for human rights due diligence investigation are as follows:

Results of Human Rights Due Diligence Investigation and Corresponding Mitigation Measures

Communication with Stakeholders

Chicony Electronics upholds four major principles in facilitating the practical ESG sustainable development operations, which are "implementation of corporate governance," "development of environmental sustainability," "maintenance of public benefit" and "disclosure of corporate social responsibility information." The Company also set regulations for dimensions such as labor, health & safety, environment, management systems, business ethics, etc. in accordance with the RBA Code of Conduct. Moreover, Chicony Electronics’ promotion and implementation of CSR Code of Conduct is regularly propagated in the Annual Supplier Conference, through which the Company can share its material issues with suppliers. It is hoped that supply chain partners or internal/external stakeholders can understand the aspects that Chicony emphasizes for ESG implementation and practical operations, and Chicony’s plans when faced with market changes, customer requirements, and the corporate sustainability responsibilities required by the global market. It is also hoped that Chicony's blueprint and vision for sustainable development can be conveyed again through different communication channels.
Chicony hopes to maintain continuous and open opinion-exchange and communication with stakeholders because stakeholders' demands are the key to an enterprise's sustainability and success. We believe that communicating with stakeholders, understanding stakeholders' needs and expectations, and responding accordingly can assist an enterprise in reviewing and planning short-, medium- and long-term strategies, and creating the value of the enterprise to stakeholders, thereby bringing about new business opportunities for sustainable operations.

The stakeholders and the issues of concern

Chicony Electronics’ Responses to the SDGs

ESG & Conduct Ethical Management

Chicony Electronics has set up ESG Committee, in which the Chairman serves as the minister, the President serves as the deputy minister, and the Corporate Governance Officer and three independent directors serve as committee members. The term of office of the committee members is the same as that of appointed Board members. A position of executive secretary is set under the committee, which is taken by the top managerial personnel of Administrative Management Department.
Issuance of corporate sustainability report:
- The 20110 Sustainability Report, the Chinese version will be issued at the end of June 2011 (the application has been completed and published on the company's website and public information observatory), and the English version will be issued at the end of July 2011; the 2011 Annual Sustainability Report, the Chinese version is expected It will be released at the end of June 112, and the English version is expected to be released at the end of July 2011.
ESG Committee:Six major aspects
① Corporate Governance:
- The Company has been included as a constituent in “FTSE TWSE Taiwan Mid-Cap 100 index" and ranked in Taiwan’s top 50 manufacturers for three consecutive years by CommonWealth Magazine Survey--Taiwan Top 100 - Industry-Manufacturing
- The Company continued to be included in TWSE’s "Taiwan Sustainability Value Index" in 2021, and remained being a constituent of "TIP Taiwan Market CSR Small/Mid-Cap Index", indicating the external recognition of the Company’s efforts in sustainable development and corporate social responsibility.
- The Company was selected as a constituent of the 2021 FTSE4 Good Index.
- The 2021 EPS was NT$8.71; the revenue, gross profit, operating profit, and net profit all hit record highs.
- No illegal act or corruption incident that violates the principle of integrity occurred in 2021.
- Chicony signed the "Human Rights Policy" and established human rights due diligence process to identify human rights risks and mitigation measures; it’s looking forward to responding to human rights issues.
② Customer relationships: Customer affirmation and CSR related awards

③ Green Products:
- Recycled plastics have been used in the production of Chicony Electronics’ entire range of products, achieving a rate of 41% for the product category with the highest percentage of use.
- 100% of new or existing suppliers have all signed “Commitment Statement on RBA Code of Conduct”, “Letter of Undertaking of Integrity for Suppliers” and “Declaration of Conflict-free Minerals.”
- Chicony Electronics Suzhou Factory successfully obtained the RBA Factory of Choice (FOC) Award in 2021.
- By the end of 2021, the number of patent applications in various countries was 137, and the number of patent acquisition was 130.
- No data/information breach has occurred in Chicony Electronics by the end of 2021.
④ Environmental Sustainability:
- Establish "Chicony Electronics ESG Committee" to oversee climate change governance.
- Obtain a Management Level Grade "B/B-" in CDP’s Climate Change Questionnaire.
- Complete SBTi "1.5-Degree-C" target setting.
- In the industrial supply chain, purchase green electricity certificates and gradually move towards green energy.
⑤ Employee Care:
- In 2021, the number of employees applying for unpaid paternity leave was 7, and the work resumption rate of the year was 78%; In 2020, 100% of those who resumed work after unpaid paternity leave had served in their positions for a whole year.
- Incentives have been offered to encourage and motivate the Company's in-service employees to have babies and to help ease the burden of child-raising. The total number of applications up to end of December 2021 has reached 111 with a total amount of NT$7,718,000 being given since its launch in 2013.
- In 2021, the total number of training hours for employees was 71,992.4 hours, and the average per capita training hours was 8.5 hours and more. 【total training hours ÷ total number of employees of the year (including the number of leavers)】
- Maternity friendly parking facilities, with a utilization rate of 75%; and distribution of mommy bags to meet the needs and protection of motherhood in the working environment.

⑥ Public Benefit:
- By upholding the belief of "Take from society, give back to society", Chicony Electronics makes donations in the name of the company to support disadvantaged groups. Therefore, a total of NT$6,468,224 was donated in 2021.
- In 2022, participate in the Danshui River Initiative and participate in the field cleaning of the Danshui River. On that day, the participants collected a total of 135 kilograms of river waste, and worked together to improve the community environment.

Corporate Governance

In order to maintain our corporate governance structure, with the Code of Conduct serving as highest guiding principle, the Group has set up a "Board of directors", a "Remuneration Committee" and a “CSR Committee”, just as the subsidiaries have done in accordance with respective needs, to provide sound governance and the best decision-making for the overall development of the Group.

Board of Directors

In accordance with the Code of Corporate Governance Practices, the Group has appointed to the Board of Directors members of various industrial undertakings experienced professionals with strong academic background, taking into account as well criteria such as gender, age, nationality and culture. The Group encourages the directors to participate in courses for further learning, the courses are mainly organized by the Taiwan Corporate Governance Association, the courses are multidimensional and include topics such as corporate governance and CSR trends, the latest development trend in international anti-tax evasion BEPS and criminal risk management. The directors are required to take at least two courses during the term and the duration to exceed at least seven hours.
Members of the Board of Directors adhere to the "Code of Integrity" to avoid conflicts of interest. In order to raise the standard of reviewing the management status and operational efficiency within the Group, the Board of Directors proposed and adopted the "Board Performance Evaluation Method" and the assessment methods in June 2015. In addition, follow-up on the implementation of corporate governance policies by the Group's divisions is done by the Audit Office, which reports directly to the Board of Directors and is responsible for risk management and the implementation of the Group's internal control system, including CSR-related performance monitoring.

Remuneration Committee

In order to ensure the independence of each committee member, we believe that a sound compensation structure is a key factor to attract high-level talent and improve the overall quality of employees. The Chicony Group Remuneration Committee was established in accordance with the “Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Stock Exchange or Traded Over the Counter”, its chief responsibilities include using annual and long-term performance evaluations of directors, supervisors and managers as well as the opinions of stakeholders such as investors, employees and customers deciding the compensation policy and standard, taking into consideration as well of the performance appraisals for individual compensation adjustments.

ESG Committee

Chicony Electronics has set up ESG Committee, in which the Chairman serves as the minister, the President serves as the deputy minister, and the Corporate Governance Officer and three independent directors serve as committee members. The term of office of the committee members is the same as that of appointed Board members. A position of executive secretary is set under the committee, which is taken by the top managerial personnel of Administrative Management Department.
The ESG Committee makes efforts in various issues of stakeholders’ concern, which cover six major aspects: corporate governance, customer relationships and supplier management, green products, environmental sustainability, employee care, and public benefit. RBA/SER teams are also set up in all plants to assist in the audit and management of various work items and the implementation of the five major criteria of RBA Code of Conduct to achieve the purpose of corporate sustainable operation. The Company reviews relevant international regulations on a yearly basis to ensure that Chicony Electronics complies with international standards at all times, and communicates with stakeholders on an irregular basis to understand stakeholders’ issues of concern and to respond in a timely manner.

Risk Management

Chicony Group’s risk management includes constant monitoring of the eight main risk factors: external market, supply of material, talent, production R&D, customer credit and collection, foreign exchange rate, corporate finance and MIS system. In addition to the classification of the risks for management, the Group also monitors closely the external market changes and internal operation status to ensure our ability for timely responses.

Total Quality Control Management

Chicony´s total quality control means system-wide quality management to cover every step of the way, from the beginning of the project, during design and after mass production, including in depth exchange with customers to fully understand their needs, performing a variety of product testing and analysis to maximize product quality stability and making the best product possible. Quality improvement efforts are continued even once mass production begins with rigorous product quality screening based on 6-Sigma. Lean manufacturing and Value Analysis/Value Engineering (VA/VE) are also applied to reduce cost and waste during production to maximize end value for the customer. In addition to rigorously implement Total Quality Management (TQC), we have also a "Customer Quality Service Team" (CQS Team), including dedicated team to our ODM plants, all to ensure our ability to understand and provide solutions to customer problems in a timely manner.

To protect the competitiveness of customer products and safeguard customer intellectual property and patent protection are part of our customer relations management. We not only have adopted the Control Objectives for Information and Related Technology (COBIT) framework and an organizational "IT Security Management Guidelines" is in place, but also we sign non-disclosure agreements(NDA) with our assigned teams and customers and have extended the scope to cover project team members as well as suppliers. We organize personal data protection seminars as part of our training program and have formulated the "Personal Data Protection and Control Regulations" to further stable sustainable development and mutual growth with our partners.

Supply Chain Management

Chicony Electronics demands the highest standards of every supplier. In addition to the emphasis on quality, the company is also committed to carrying out real-time quality control and audits in every part of the supply chain and seeking the optimization of energy saving and maximization of environmental/sustainable value. Besides the “Commitment Statement on RBA Code of Conduct” which should be signed by all new suppliers, we also establish three raw material management mechanisms, which are "Substance Standards for Environmental Management", "Prohibited and Restricted Substances" and "Conflict Minerals", and set up the Industrial Safety & Health Office serving as a supervisory department for environmental protection to ensure that the procurement from suppliers complies with international regulations and customers’ requirements, and shall achieve the sustainability of the green value chain.
Chicony Electronics also requests all new and existing suppliers to sign “Commitment Statement on RBA Code of Conduct”, “Letter of Undertaking of Integrity” and “Declaration of Conflict-free Minerals” and to complete relevant background surveys. In order to implement RBA Code of Conduct and carry out Declaration of Human Rights and the current regulatory and customers’ requirements, suppliers are required to give reports on the problems raised in onsite inspections.

At current stage, through the annual onsite audits, Chicony Electronics hopes to help suppliers of all factories learn about the regulations of RBA Code of Conduct and practice the standards in their actual operations, and also hopes to assist suppliers in improving their self-management capabilities. No supplier partnership was terminated due to major defects in labor conditions which violate RBA Code of Conduct in 2019. Suppliers of whom improvement was demanded are all making improvement. With the impact of COVID-19 pandemic, the number of onsite assessments was thus reduced and only 59 suppliers were reviewed in 2020. Suppliers for whom on-site audits failed to be conducted were simultaneously managed based on the risk control principles through the "supplier self-assessment" approach (by using paper questionnaires). With the higher vaccination coverage and the pandemic being relatively under control, there were 90 suppliers underwent onsite audits in 2021.
For suppliers who are found to be involved in zero-tolerance items and significant CSR risks such as child labor, involuntary labor, physical punishment, bribery, underpayment of wages or falsification of document, if they refuse to improve the defects immediately or refuse to undergo inspections, the procurement department should be immediately notified to take further action and be recommended to suspend or terminate the transactions with such suppliers.

As a member of the Responsible Business Alliance (RBA), Chicony Electronics strives to continuously progress with supply chain partners. In addition to set requirements for suppliers, Chicony Electronics also works hard to achieve set standards itself. Chicony Electronics and all factories' employees have actively participated in the evaluation for "RBA Factory of Choice Award Program" since 2021. It is hoped that the attitude and practice of continuous improvement can be maintained in the process of the evaluation via the participation in various new knowledge training courses, and the setting of goals accordingly combined with actual implementation of set plans to help Chicony Electronics’ factories meet customers’ requirements, and enable the Company to become an important role in the supply chain, encouraging more partners to do their part in fulfilling corporate social responsibilities. Chicony Suzhou Factory won the "RBA Factory of Choice Award" in 2021, which was the first Chicony member that received this honor. Currently other factories of Chicony are also actively working for the validation by the program to attain the consistency in standards and management throughout all Chicony Electronics’ factories.

Employee Care

Global Manpower structure and employment rate

Chicony Electronics has employees all over the world with a total number of more than 16,000 who work together for the Chicony family. By strictly abiding by RBA Code of Conduct, International Labor Convention and the Global Sullivan Principles, Chicony Electronics does not engage in any discrimination on the basis of race, gender, age, religion or political affiliation, gender identity, disability and nationality in determining employment retention, working hours, salary & benefits, performance evaluation and job promotion. The company also strives to ensure that all members in different regions can accurately comply with local laws and standards. In addition to making announcements of relevant regulations through bulletin boards, e-mails, and internal consultations in employees’ native language, relevant training such as new employee training, employee annual training, etc. is also organized to further explain the regulations and applicable situations for employees to better understand the Company's policies and internal regulations.
On account of industry characteristics, job market status and other factors, male employees account for a high percentage of management and R&D staff of the Headquarters in Taiwan, while the percentages of male and female employees in other plant areas differ from each other due to local work patterns and job market factors. The human resource structure of Chicony Electronics has become younger in recent years, in which employees aged 50 and younger account for more than 80% on average.

Structure and Distribution of Employee Diversity

2021 Worldwide New Hires Employment Rate

New Employee Turnover

Employee Turnover

Parental Leave

Chicony Electronics provides substantial care and assistance to the employees who need to take care of their children, which include unpaid leave arrangements and related subsidies, etc. In 2020, the number of employees applying for parental leave was 6, and the work resumption rate was 67%. However, with the uncertainties brought by the COVID-19 pandemic, the work resumption rate was lower than that of the previous year. Chicony Electronics has been committed to providing employees with complete employee care mechanisms in hope that the employees who need to look after their children can take care of family and concentrate on work at the same time.

Employee Remuneration

Chicony Electronics’ employee salary standards are formulated by human resource units based on market salary, the company’s financial status and organizational structure. The overall remuneration is determined according to employees’ individual professional competencies, job responsibilities, work performances and achievement status of the company's operating goals. The salaries of new employees will not differ on account of gender, race, political affiliation, ideology, religious beliefs, gender identity or marital status. The starting salary is higher than the basic salary regulated by the government. The core principle for salary calculation lies in a comprehensive consideration of employees’ expertise and the positions being held.

Employee Remuneration

Employee Benefits

Employee Communication

Chicony Electronics respects and values employees’ opinions and provides various communication channels for employees to stay on top of the company’s ongoing status and to express their opinions and concerns regarding workplace issues. Human Resource Department has provided several two-way channels including:
1. Employee Mailbox: Receiving and responding to employees’ grievances
2. Email notification: Informing employees about the Group’s announcements and forwarding letters from top management to employees
3. Employee Communication Meeting: All employees have a two-way conversation with top level managers, mainly organized by the administrative management departments and jointly implemented by all related units.
4. Bulletin board: Providing information about employee-related policies, health & safety and corporate activities
5. Consulting Room: Providing one-on-one consultation
6. Employee Representatives Meeting: HR communicates with labor representatives on a quarterly basis
7. "CEO’ s Mailbox": The Auditing Office takes the responsibility for investigation and review.
8. "Management Procedures for the Prevention of illegal treatment during the Execution of Job Duties": Office of Human Resource / Office of Administrative Management take the main responsibility for reviewing and handling
9. "Management Directions for Workplace Sexual Harassment Preventive Measures, Grievance and Punishment": Office of Human Resources/Office of Administration Management takes the main responsibility for receiving the submission of grievance, investigation and review.

Comprehensive Employee Concern and Employee Health Management

Pandemic Preventive Measures

With the outbreak of COVID-19 pandemic after the Lunar New Year in 2020 when all work was supposed to be re-activated, the factories in China had no choice but to announce the extension of New Year holiday and postpone operations resume. The Headquarters and factories in Dongguan, Suzhou and Chongqing in China all seriously prepared for this event and issued management measures for the pandemic to take care of all employees. Employees are assets for a business seeking sustainable development; and it is a responsibility of the business owner to protect the company’s assets. So in order to protect employees from being affected by the pandemic, the company offers pandemic allowances to help ease the burdens of pandemic on employees. Although the Taipei Headquarter was not directly and seriously affected by the pandemic, yet considering that family members of some employees might have suffered impacts of the pandemic, the company still decided to give out "pandemic prevention bonus" to reward employees as well as take care of employees’ families. (The bonuses were only available for base-level employees and were distributed based on employees’ salary levels, where the lower the salary is, the higher amount of bonus is paid.)

Thoughtful Facilities

With the increasing acceptance of gender diversity (LGBTQ groups) in society, the value arising from the inclusion of gender diversity has gradually become an important indicator of corporate social responsibility (CSR), and even become an important part of friendly workplace and a company’s sustainable development. In order to realize this concept, Chicony Electronics started to create friendly workplace in the company by offering training courses and building up hard facilities in hope that "friendliness" and "inclusiveness" can be integrated into employees’ daily life and will also prevail in the workplace.

Moreover, in order to ensure the physical and mental health of female employees during pregnancy and to implement maternal health protection, basing on the concept of "Workplace Friendliness Promotion" in business practice and management, business entities should set up workplace friendly facilities for employees with special needs caused by occupational accidents or personal injuries to support and meet employees’ essential needs.

Reminder and care for working overtime

In response to the effective management and control of overtime work, the company reminds employees through announcements and e-mails that they need to apply for overtime in advance or as soon as possible afterwards. After review by the unit directors, they can apply for overtime pay or compensatory time off. Managers and Directors should not only understand the actual work situation, but also dispatch manpower support in time to improve the overtime situation. They review and feedback the overtime situation every month, and provide care and physical and mental health consultation by physicians and nurses, so that employees can still know when they are busy and under pressure how to allocate work and rest time.

Massage station

Since 2016, Chicony has hired masseurs from visually impaired groups so that employees can enjoy a moment of relief during stressful work. It also allows vulnerable visually impaired people to use their professional skills and use their own abilities to maintain economic and daily needs. Disconnected from social groups.

Comprehensive Employee Health Management

Talent Development and Training

Diversified Training Courses
Chicony Electronics attaches great importance to employees’ development and regards talent cultivation and development as a competitive advantage. Thus, the company has organized a complete training system and developed training courses to help employees improve their professional skills and management capabilities and encourage employees’ self-growth. In addition to the complete training system, the company has also formulated "Measures for Education and Training Management", based on which training courses are introduced and training plans are proposed according to the needs of various departments on an annual basis. Improvement and update are carried out every year based on the system to continuously optimized employees’ professional competencies. Besides, the company has also established a learning blueprint with different modules based on employees’ fields of expertise and positions aligned with the company's operating goals. Moreover, with OJT (on-the job training), job rotation, knowledge sharing, soft power cultivation and other arrangements, a Competition Capability Academy of Chicony is created in hope that all employees can be skillful both in theory and practice and can keep growing with the company. The structure of course planning is explained as follows:
1. New Employee Orientation
In order to help new employees get to know Chicony more quickly, the company conducts training for new employees from three aspects so that new employees will not panic when starting a new job in Chicony and can immediately demonstrate their professional capabilities.
(1) Basic knowledge: Provide courses such as "Group Introduction", "Introduction to Personnel System" and "Introduction to Company’s Benefits Policy" to assist new employees in fitting in at new job and adjust to the work environment in Chicony.
(2) Environment introduction: Provide courses such as "Instructions on the Chicony Building System", "Introduction to the Internal Environment of Chicony Building" and "Fire Safety/Fire Fighting Training," to help new employees get familiar with the new environment.
(3) Corporate governance: Provide courses such as "Ethical Corporate Management Best Practice Principles" and "Advocacy of Human Rights Commitment," to help new employees understand the company's norms.

2. Professional Skill Training
By pivoting on strengthening employees’ various professional skills, the company develops a range of professional courses and relevant license/certificate training programs combined with a variety of general courses and thematic lectures. It is hoped that Chicony's overall knowledge/production capabilities and core competitiveness can be enhanced through employees’ participation in professional and non-professional courses and lectures.
(1) Professional courses: Design and implement on-the-job training for different professional fields; for example, R&D personnel's "R&D Creativity Stimulation Techniques," business/sales personnel's "Business Presentation Skills," and PM personnel's "Project Management." Four to seven professional courses are designed for each field so that employees can update their professional abilities and give full play to their strengths in the workplace through these professional courses.
(2) General courses: A range of general courses such as "Language Training," "Communication Skills," and "Emotion and EQ Management,” are organized every year according to the internal and external environments of the company for employees to develop their own soft power while enhancing their hard power. In addition, multiple sessions of "ESH Workshops," "Fire Safety Training," and "First Aid Training" are also organized every year so that employees can be aware of the hygiene, safety and health conditions of their work environment.
(3) Thematic lectures: There are diversified lectures provided by the company; for example, legal lectures for skill enhancement, health lectures focusing on employees’ health enhancement, and parenting lectures aiming at family relationships. The lecturers being invited are also very diverse, including university professors, Internet celebrities and psychological counselors, by which employees can acquire new knowledge for their work and life. In addition, lectures on "Sexual Harassment Prevention," "Anti Workplace Bullying," and other workshops are also organized to implement and advocate Chicony’s human rights policies.

3. Management Capability Training
The training courses are divided into three categories according to the position levels, which are entry level management, middle level management and top level management. Managers of different levels of management should possess different competencies required for their positions according to their scope of management and degree of participation in Chicony’s decision-making, for which the company develops on-the-job training courses to meet the needs of managers of different levels of management.
(1) Top level managers: Cultivate their leadership, decision-making ability and innovation skills by means of courses such as "Leadership Techniques," "Systematic Thinking and Decision-making," and "Innovative Thinking and Creative Management"
(2) Middle level managers: Cultivate their team management ability, subordinate cultivation ability and planning ability by means of courses such as "Personnel Selection and Interview Skills," "Techniques to Guide and Motivate Subordinates," and "Discover and Solve Employee Problems."
(3) Entry level managers: Cultivate their problem-solving skills, expression skills and instructional skills by means of courses such as "Problem Analyzing and Solving," "Expression and Presentation Skills," and "Instructional Techniques for Work."

Statistics for 2020 Training Implementation

Charity and participation

Giving Back to Community

The Chicony Park is located in the Erchong Floodway (left bank) rezoned area , that is, Lane 175 of Zhongxing North Street behind Chicony Headquarters Building, the area of which is about 3074.72 square meters. Chicony Electronics Co., Ltd. currently takes the responsibility for the park maintenance including cleaning, facility maintenance and vegetation management, etc. There are pavilions, children's play facilities, stone sculptures and public toilets, etc. in the park, which are all available for nearby residents and communities. By participating in the Adopt-a-Park program, Chicony Electronics donated land for community residents to have a space for leisure activities, and signed an agreement with Sanchong District Office to undertake the park maintenance work, thereby demonstrating the company’s commitment in green space protection and promotion of community recreation.

Caring Disadvantaged Groups

By upholding the belief of "Take from society, give back to society", Chicony Electronics makes donations in the name of the company to support disadvantaged groups. It is because the company deeply believes that the commitment to society should be included in Chicony’s corporate responsibilities. Chicony Electronics' sustainable corporate social responsibility strategies are developed based on the company's core values. In addition to the various charitable activities promoted by the company, many employees also voluntarily founded "People Caring Club," which collaborates with the external charitable activities in the hope of integrating and exerting the company’s resources to give back to the society and to expand the influence on the social value system.


As part of the global electronics industry, Chicony strives to take full corporate responsibility to society. We support and take part in the “Electronics Industry Citizenship Coalition” and abide by the EICC Code of Conduct, this includes the strengthening of the corporate operational system, protection of the rights of workers and their welfare, the creation of product value and profit while paying attention to environmental protection as well as social and human participation. We produce high added-value products through continuous innovation and development and also create a work environment that allows employee potential to be best developed in their own interest, as well as that of stakeholders and society.

Our commitments are:
Create corporate values, enhance stockholder and all stakeholder interests.
Maintain good corporate management, strictly abide by business ethics and comply with all legal regulations.
Provide employees with a safe and healthy work environment and encourage them to take part in public social interest activities.
Strive to promote corporate social responsibilities and pursue sustainable development with cooperating companies and clients.
Research and develop environmentally-friendly and energy-saving products, realize environmental protection actions and reduce environmental impact.

Conflict Minerals Declaration

Chicony Electronics is committed to carrying out conflict minerals due diligence investigation, and promises not to use conflict minerals based on the commitment to corporate social responsibility and the compliance with the requirements of customer/supplier management principles. We reiterated our commitment to conflict minerals and relevant implementation guidelines in 2021.

Conflict Minerals Declaration

The U.S. SEC (Securities and Exchange Commission) officially issued "conflict minerals" regulations on August 22, 2012, requiring U.S. listed companies to disclose information about the use of four minerals, which are gold (Au), tantalum (Ta), tin (Sn) and tungsten (W), and their derivatives in the products produced in the previous year before May 31 each year. Chicony Electronics is committed to carrying out conflict minerals due diligence investigation, and promises not to use conflict minerals based on the commitment to corporate social responsibility and the compliance with the requirements of customer/supplier management principles. "Conflict Minerals" refer to minerals/metals including gold (Au), tantalum (Ta), tin (Sn), tungsten (W), cobalt, etc. and their derivatives coming from Democratic Republic of Congo (DRC), Rwanda, Uganda, Burundi, Tanzania, Kenya and their neighboring countries, which directly or indirectly involve the financial assistance for armed criminal organizations and result in human rights violations, forced labor, violent conflicts, etc. Therefore, Chicony strongly requests and advocates supply chain partners’ joint collection of conflict minerals information and completion of conflict minerals due diligence investigation within the supply chain in accordance with the Conflict Minerals Reporting Template (CMRT) developed by Responsible Minerals Initiative (RMI) (formerly known as the Conflict-Free Sourcing Initiative) and the Smelter and Refiner Lists published by RMI in which the smelters and refiners that meet auditing standards are listed.

Applicable Scope
Chicony Electronics' Conflict Minerals Declaration is applicable to the Company, the Company's domestic/overseas subsidiaries, and supplier partners. Through Supplier Conference, Sustainability Report, and announcements on the official website, it is hoped that supply chain partners can work with Chicony Electronics to attain the consistency in policies to support the "Conflict Minerals Declaration", and jointly carry out and complete conflict minerals due diligence investigation within the supply chain in accordance with the Conflict Minerals Reporting Template (CMRT) developed by RMI, and the Smelter and Refiner Lists published by RMI in which the smelters and refiners that meet auditing standards are listed.

Commitment and Implementation Guidelines
1. The Company does not accept the "conflict minerals" from Congo and its neighboring countries and regions.
2. The Company's domestic/overseas subsidiaries shall establish conflict mineral management mechanisms and management measures to ensure that the gold, tantalum, tin, tungsten and cobalt contained in the products do not come from "conflict minerals".
3. The Company and its supplier partners in the industry shall propose requirements calling for Conflict Minerals Due Diligence Investigation every year.
4. The Company shall ensure that the above-mentioned "conflict minerals" are not used in the Company's and end-customers’ products.

Conflict Minerals Platform (CMRT)

Environment Protection

Saving energy

Environmental protection is Chicony’s core responsibility and an essential mission. We are committed to the prevention of environmental pollution, the design and production of green products and we continue with improvements, strive to promote corporate environment protection culture and realize a CSR spirit of “sustainable development”. Through green design and production, we are reducing the impact our production has on the environmental from carbon emission and provide the largest value of environment protection and cherish our planet.

Saving energy

Chicony realizes that the usable resources of our planet are limited and precious. As a citizen of earth and a leading technological enterprise we feel duty-bound to the saving and management of these resources. We have planned a series of management actions to achieve this purpose.

Management of electricity resources

Management of electricity resources

The consumption of electricity is the main source of greenhouse gas emission and improving electricity management is a matter for continuous effort. To reduce energy-consumption over the past few years, Chicony has been enhancing the efficiency of factory facilities. In particular, measures have been taken to improve energy-saving on the production lines:

Energy-saving in air-conditioning

The actual actions were as follows:

Regional temperature control is now used to reduce the energy consumption for air-conditioning.
The cooling systems of the air-conditioners are maintained more frequently to eliminate the scale which affects energy consumption.
Operation of the pumps is more carefully regulated to increase efficiency.

Energy-saving in lighting

In accordance with all levels of the energy-saving project, starting in 2011, traditional T8 and fluorescent lamps T5 have been systematically replaced with T8 LED lamps. The energy saved has been 1,884.57 and 1,027.61 thousand kWh in 2011 and 2012 respectively. Actions taken were:

All traditional lamps were exchanged for LED lamps
LED lamps are used in all newly-built facilities
The concept of energy-saving was reinforced by promotion of the action of turning off electrical devices when they are not in use.

Energy-saving during the production process

The MKB business department has introduced new UV machines. The old machines consume 9kW electricity and the new ones only 4.8W which saves about 47% of the electricity used, a total of 16,380kWh in 2012.
The CM business department changed the mercury lights in the UV machines to LEDs and saved 7,488kWh in 2012.
We continue to repair air leaks in the factory compressed air systems. Compressed air leakage is an obvious waste of energy. Since 2010, Chicony has employed repairmen to control the leaks in all the factories and has saved 45, 89 and 88 kWh in 2010, 2011, 2012 respectively.

Other energy-saving methods

We continue to change the absorbent dryer in the air compression system in all factories from the non-heating type to the heating-type. This can save 96 thousand kWh of electricity per year. As the non-heating absorbent wastes about 15~20% of the compressed air and the heating-style uses very little energy to achieve the same effect.
All compressed air pipelines are inspected regularly for leaks and the situation is improving.
Energy-saving is being promoted in all production facilities and systems by replacing old parts with new ones that consume less energy.

Water resource management

All factories should pay attention to air-conditioning and water-cooling and ensure that regular maintenance is done. The floating ball valves that control the water level in the tanks should be serviced to reduce wasteful leakage.
Continue to replace water taps with water-saving models to ensure daily water savings.
Replace the toilets cisterns with water-saving models to reduce daily water consumption.
For factories that have water-purification systems, we introduce waste water recycling projects that ensure 85% recycling.
Promote the concept and methods of energy-saving.
Regularly inspect the water pipes in all the factory dormitories to detect and repair all leaks without delay.

Renewable Energy

We commit to 100% renewable electricity by 2030.
The Inverter produced by Chicony can be used to produce standard city electricity to supply factories. It has been promoted by the cooperative efforts of several well known factories in the country. At present, the Taipei headquarters building has installed a 5.8kW solar energy system (polycrystalline silicon 290W x 20) that can produce 6,418 kWh of electricity per year.

New product development

The rapid deterioration of the global climate has made “green” environmental protection an issue of the gravest concern at the UN and in all countries of the world. Chicony has spared no effort to engage in environmental protection. All products by Chicony meet international environmental protection standards, such as EU RoHS and WEEE, as well as the safety rules of CE, FCC, ICES-003, VCCI, BSMI, UL, TUV. Furthermore, right from the very start when a new product is contemplated, the concept of green design is foremost in the hope that factors which might harm the environment can be avoided. Even a tiny idea, as long as it is in some way helpful to environmental protection, can make a contribution and help us fulfill corporate social responsibility.

Science Based Targets Initiative (SBTi) Implementation Results

Science Based Targets Initiative (SBTi) Implementation Results
In December 2021, we have completed the signing to support the TCFD and SBTi initiatives. To achieve the carbon reduction target, a short-, mid-, and long-term decarbonization strategy is initially formulated with 2020 as the base period. In the short-term strategy, except for the procurement of carbon credits, which is still under evaluation, all other projects are being implemented or have been completed.

SBTi Progress

Chicony (including Chicony Power) set a carbon reduction target in line with SBTi and the 1.5°C scenario of the Paris Agreement in 2021, and has obtained SBTi certification for its rationality in 2022.
Reduce Scope 1 and 2 GHG emissions 56.8% per million NTD revenue by 2030 from a 2020 base year, equivalent to 42% in absolute emissions.
Reduce scope 3 GHG emissions from use of sold product 44.2% per million NTD revenue by 2030 from a 2020 base year, equivalent to 25% in absolute emissions.

SBTi Progress

SBTi Progress

In 2022, the Company promoted various energy and resource efficiency projects and replace many old equipment with new energy-saving and carbon-reducing equipment. At the same time, we promoted high value-added and low carbon products. As a result, we achieved record revenue and lower absolute and relative carbon emissions, and met the SBTi targets for 2022. Chicony Power's results are described in their Sustainability Report.

Chicony (only) GHG Reduction Progress

Chicony (only) GHG Reduction Progress

Contact Us

Contact Us

The Chinese and English editions of the CSR reportcan be viewed and downloaded from the CSR section of Chicony and its subsidiaries' corporate websites.
Thank you so much for continually considering our commitment as well as practices on Chicony’s CSR path. If you have any suggestions or criticisms to make, please do not hesitate to contact us through the following methods. Your involvement makes an invaluable contribution to our continued efforts towards sustainable development.

Chicony Electronics Co., Ltd.
ESG Committee
Tel: (02) 6626-6788 #17003
Official Website:

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