Letter from the Management
In recent years, the ESG trend has become a subject that companies must face. Factors including extreme climate intensification, geopolitical conflicts, and high prices caused by global inflation have impacted the current order of economy and trade. With ever-changing standards and regulations, these factors seriously impact and challenge corporate operations. Only companies with operational resilience that implement continuous innovation and digital transformation can accomplish the goal of sustainable operation. KYEC is committed to the strategic thinking of "creating profits for shareholders," "creating value for society," and "focusing on the rights and interests of stakeholders," desiring to internalize ESG into the company's culture and achieve mutual prosperity with global partners.
Environmental Friendliness
With global climate change receiving increasing attention, how to fulfill the commitment to net zero by 2050 has been a critical concern for our management. Under the impact of extreme climates, KYEC, through ISO 14064 inventory and verification, recognizes that the main source of carbon emission of the Group is Scope 2 emission from power consumption. We are committed to reducing Scope 2 carbon emissions by setting greenhouse gas reduction targets, promoting energy-saving projects, expanding the usage of renewable energy, and actively installing photovoltaic power generation systems at each plant. In recent years, we have concentrated on low-carbon transformation. Aside from winning the Sustainable Procurement Award annually, we also plan to introduce the ISO 14067 Product Carbon Footprint in 2024 and obtain the UL2799 Zero Waste to Landfill Platinum Certification in the third quarter, aiming to continuously enhance green performance with the goal of sustainable production.
Social responsibility
KYEC Group has formulated a "Human Rights Policy" to eliminate any violation of human rights that adhere to and respect human rights with all employees, suppliers, contractors, business partners, and local community residents, creating a diverse and inclusive work environment. In 2023, a third-party agency of the Responsible Business Alliance Code of Conduct (RBA) conducted a "Verification Audit Process" (VAP), in which KYEC achieved a perfect score. In talent selection, utilization, development, promotion, and retention, KYEC made considerable achievements, such as creating more local job opportunities, continuously investing in high-quality industry-academia cooperation combined with the Company's long-term development strategy, and carefully planning employees' career blueprints. In terms of social participation, from individual special care to the campus and further expanding to local community residents, KYEC has achieved diversified charitable care and support.
Corporate Governance
Since its establishment, the Company has adhered to its philosophy of creating mutual benefits and pursuing the greatest rights and interests for shareholders, employees, suppliers, and customers. KYEC ensures that all personnel and operations strictly comply with relevant laws and regulations by establishing a governance organization and implementing internal control systems. Members of the functional committees fully understand their respective functions, playing their due roles in practice to their fullest. Regarding operational strategy, in response to the strong demand for AI/HPC and the surge in CoWoS testing capacity, the Company will invest in researching higher-level testing technologies, expand high-level testing equipment to increase production capacity, plan the construction of new factories, and diversify customer services. Throughout this process, KYEC keeps in mind its role as a global citizen and integrates ESG into its company strategy to establish sustainable competitiveness.
Sustainable Supply Chain
KYEC aims to dedicate itself to sustainable development with its suppliers. Through annual ESG education and audits, we communicate our sustainability philosophy, enhance our suppliers' sustainability capabilities, and reduce operational risks. We also request that our suppliers elevate their ability to manage supply chain risks by themselves, assisting the suppliers to facilitate mutual growth and achieve sustainable operation. Additionally, KYEC's policy consistently adheres to all elements of the latest RBA Code of Conduct, which KYEC also requires its suppliers to comply with strictly.
Implementing ESG is the cornerstone of corporate sustainability. Despite the challenges along the way, KYEC is determined to achieve Taiwan's 2050 net-zero emission goal and supports the United Nations' 17 Sustainable Development Goals (SDGs). We continuously implement ESG-related sustainable activities, including financial and non-financial, and incorporate them into our business strategy to manage risks and seize opportunities, aiming to achieve sustainability and contribute to a bright future for the industry, society, the nation, and humanity. (Note: To enhance the efficiency of sustainability report preparation, a systematic process was introduced in 2023 to speed up the digital transformation of sustainability information.)