Sustainability Strategy and Performance

Sustainability Strategy and Performance

An organization that facilitates sustainability

To implement the concept of sustainable management and fulfill corporate social responsibility, Alltek has established the “Sustainability Committee”.The committee consists of the company’s general manager and three independent directors to effectively promote the setting of the company’s sustainable goals. The committee includes sub-groups such as the Corporate Governance and Risk Management Subcommittee, Information Security and Process Management Subcommittee, Environmental Protection and Supply Chain Subcommittee, and Employee Care and Social Participation Subcommittee. These sub-groups are responsible for proposing, executing, and reporting on corporate sustainability-related matters. The chair of the Committee serves as the convener. Each team has a team leader who is responsible for the communication and coordination of matters under the control of the team, and compiles the information related to the team’s responsibility to facilitate various projects and respond to major issues of various functions.

Sustainability Performance in 2023

Aspect

Achievements in 2023

Corresponding SDG Indicator
 

 

 

 

Environmental aspect
  • We has implemented governance operations related to climate change risks and opportunities, following the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) issued by the Financial Stability Board (FSB). We discloses its performance for 2023 and its work goals for 2024 according to the framework recommended by TCFD.
  • Continuing the “Alltek Paper Reduction Campaign,” the paper usage in 2023 was 215,297 sheets, which is a reduction of 58,799 sheets compared to 2022. The reduced paper usage is equivalent to saving approximately 7.06 trees from being cut down.
  • In 2023, the electricity usage was 496,856 kWh, which is a decrease of 2,500 kWh compared to the previous year.
  • In 2023, the total water usage at the group headquarters was 1,269 cubic meters, which is a decrease of 13.61% compared to the previous year.
  • In 2023, a total of 948 paper boxes were saved due to the implementation of combined box operations in the warehouse, resulting in savings of 116,699 NTD.
  • The warehouse environment has no packaging waste, and all received paper boxes and packaging materials are 100% recycled.
  • In 2023, 4,439 kilograms of paper boxes were recycled in the warehouse, which, after resource recovery, can reduce approximately 23,482 kilograms of CO2e carbon emissions.
  • Alltek has engaged in biodiversity conservation efforts by joining the “Taiwan Good Air Nursery Field” program and the “Building a New Paradise at Cape 2023” nurturing program.
  

 

 

 

SDG 12 Responsible Consumption and Production

SDG 13 Climate Action

SDG 15 Conserve Terrestrial Ecosystems
 

 

 

 

Social aspect
  • In 2023, Alltek’s workplace health activities received recognition and awards, including the “16th TCSA Taiwan Corporate Sustainability Awards – Workplace Well-being Leadership Award,” the “2023 CHR Healthy Corporate Citizenship (for companies with fewer than 500 employees): Platinum Award” from CommonHealth Magazine, and the “Health Promotion Mark” from the Ministry of Health and Welfare’s National Health Administration.
  • To spread the external influence of healthy workplaces, we were invited to participate in 5 workplace health promotion sharing and advocacy events in 2023.
  • In 2023, the Company held the 4th “Health Together Line – Advancing Health” activity, which was attended by 293 people across the Group, with the participation rate increasing by 581.4% since the inception.
  • Obtained the certification of “Age-Friendly Workplaces” from the Employment Office of the Taipei City Government and the New Taipei City Government.
  • There were no occupational accidents throughout the year.
  • Provide a diverse range of educational training courses, offering professional continuing education courses based on employees’ job needs. In 2023, employees received a total of 1,663.5 hours of annual education and training.
  • Promote employee shareholding trust, and regular employees who have served in the company for more than one year can apply for membership.
  • In 2023, we participated in 10 social inclusion activities under the four major aspects of “social welfare,””cultivation of technology talents,””value demonstration in a healthy workplace,” and “protection of children’s education.”
  

 

 

SDG 1 Ending Poverty

SDG 3 Health and Well-being

SDG 4 Education Quality

SDG 8 Jobs and Economic GrowthSDG 10 Reduced Inequalities

SDG 11 Sustainable Cities

SDG 17 Diversified Partnerships
 

 

 

 

Governance aspect
  • In the 2023 CommonWealth Magazine “Top 2000 Survey: Top 500 Service Companies,” Alltek ranked 34th, rising 2 places from the previous year.
  • Received the Bronze Award in the 16th TCSA Taiwan Corporate Sustainability Awards for Corporate Sustainability Reporting.
  • No significant negative news.
  • No violations of economic regulations or fines.
  • 100% of the board members received anti-corruption education, training, and communication.
  • The attendance rate of the Remuneration Committee members was 100%.
  • In 2023, there were a total of 6 information security advocacy projects with 104 activities.
  • In 2023, there were no instances of sensitive information leakage or major information service interruptions that resulted in financial losses for customers or suppliers.
  • For the past 5 years, we has achieved zero errors in shipments through its warehouse management system. The on-time delivery rate, delivery accuracy rate, and inventory accuracy rate have all been 100%.
  • 100% of logistics service providers comply with the Responsible Business Alliance Code of Conduct.
  

 

 

 

SDG 8 Jobs and Economic Growth

SDG 9 Industry, Innovation, and Infrastructure

SDG 16 Peace and Justice Institutions
Risk management

Alltek has adopted a “Risk Management Policy and Procedures” method, approved by the board of directors in 2022, to ensure stable operation and sustainable development. This includes establishing a sound concept of integrity in operations and regularly assessing risks to reduce operational risks. The risk management policy defines various risks according to the Company’s overall operating guidelines, and establishes a risk management mechanism for early identification, accurate measurement, effective supervision, and strict control of risks to prevents possible losses within the tolerable risk range. The best risk management practices are continuously being adjusted and improved in accordance with changes in the internal and external environment in order to protect the interests of employees, shareholders, partners and customers, while also increasing the value of the Company, and achieving the principle of optimizing the allocation of company resources.

Risk Management Organization

The Company’s Board of Directors is the highest decision-making body for the Company’s risk management, with the objective of complying with laws and regulations and promoting and implementing the Company’s overall risk management. The Board of Directors has a clear understanding of the risks faced by the operations in order to ensure the effectiveness of risk management and assumes the ultimate responsibility for risk management. The board of directors has established a “Sustainability Committee,” which includes various functional teams responsible for analyzing and monitoring risks within their respective units. The Risk Management Team is responsible for implementing and promoting various risk management policies, holding meetings at least twice a year, and regularly reporting risk management results to the Sustainability Committee.

  • Internal audit

The internal audit of the company is an independent unit, staffed with one full-time auditor, directly reporting to the board of directors. They assist the board and management in supervising the various internal systems and processes, ensuring the effective implementation of the annual audit plan, and guaranteeing the effectiveness of internal audit procedures, the reliability of financial reporting, compliance with relevant laws and regulations, and providing timely improvement suggestions. This ensures the effective implementation of internal systems, solid supervisory mechanisms, and the execution of risk management controls.

Risk management procedures

The risk management process is divided into four stages. Each risk management unit examines its own business and operational characteristics, identifies possible risk factors that the Company’s operations may face, develops a complete risk classification framework, and defines appropriate measurement methods as the basis for risk management.

  • Alltek reviewed its business and operational characteristics, and the risk categories and management measures for 2023 are as follows
Risk category Risk Management Measures for 2023
Operational risk 1. Developed the “Sustainability Development Practices Guidelines” in accordance with the regulations of the securities regulatory authority as a management guideline for economic, environmental, and social risks and impacts, and revised the “Procedures for Sustainability Committee Establishment”.

2. Conducted risk identification and risk assessment in each department to establish risk response and risk monitoring systems.

3. Implemented compliance with laws and regulations, and there were no illegal activities affecting operations in 2023.

4. The audit department formulated an annual audit plan based on risk assessment and executed it according to the plan.
Financial risk 1. Enhance the management of major assets such as inventory and accounts receivable. Hold weekly meetings with department-level supervisors and monthly meetings with department-level managers to review operational status, assess risks, and develop response plans.

2. Plan to establish new joint credit facilities with banks to enhance operational funding.
Information security risk Continuously implement information security protection measures in accordance with the “Cybersecurity Management Policy” and report the execution status to the board of directors in 2023.
Environmental risk Support the governance of climate-related risks and opportunities based on the framework proposed by the Task Force on Climate-Related Financial Disclosures (TCFD), published by the Financial Stability Board (FSB) in June 2017. Disclose annual performance and future goals according to their recommendations.
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