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 2025
Aspect Achievements in 2025 Corresponding SDG Indicator
Environmental aspect
  • All-rounded group completed the Scope 1 and Scope 2 Greenhouse Gas Inventory.
  • The reduction in office machine paper usage is equivalent to saving 25.12 trees from being cut down.
  • The paper usage for procurement and inventory in Taiwan’s warehouse was reduced by 91.31% compared to the original process.
  • The implementation of combined box operations in the warehouse saved a total of 1,045 paper boxes.
  • The warehouse environment has no packaging waste, and all received paper boxes and packaging materials are 100% recycled.
  • Organize an ecological tour of Keelung Islet to enhance employees’ understanding of volcanic terrain, native plants, and ecosystems through environmental education, promoting awareness of the natural environment and ecological balance.
 SDG 11 Sustainable Cities and Communities

SDG 12 Responsible Consumption & Production

SDG 13 Climate Action

SDG 15 Life on Land
Social aspect
  • Zero cases of occupational diseases and occupational injuries.
  • Provide a diverse range of educational training courses, with employees receiving a total of 6717.25 hours of annual education and training.
  • Continue to promote employee shareholding trust, achieving an employee participation rate of 50%.
  • The proportion of local talents hired as senior executives at Alltek’s Taiwan operational sites is 100%.
  • Promoting social inclusion through three aspects: social welfare, cultural arts, and industry-academia collaboration:
  • Donations for recruitment, retention, and talent training at National Taiwan University Hospital; donations of LED light bulbs and office equipment, and Christmas charity sales as part of public welfare initiatives; support for various cultural activities such as the film “Marching On,” the concert “Mo Xie,” and the Ju Percussion Group; collaboration research projects with Taiwan Tech and National Formosa University to support talent training.
  • Implemented the “Custos” Sustainable Action Management Platform, with the whole team accumulating a total of 3,879 green actions within two weeks.
 SDG 1 No Poverty

SDG 3 Good Health and Well-being

SDG 4 Quality Education

SDG 8 Decent Work and Economic Growth

SDG 10 Reduced Inequalities

SDG 11 Sustainable Cities and Communities

SDG 17 Partnership for The Goals
Governance aspect
  • Selected as a constituent stock in one ESG category.
  • No major illegal activities, lawsuits, or non-litigation events.
  • 100% of the board members received anti-corruption education, training, and communication.
  • 95% of the whole team received anti-corruption training and education.
  • The attendance rate of the members of each functional committee was 100%.
  • Obtain ISO27001 certification.
  • There were zero major information service interruptions.
  • The warehouse’s on-time delivery rate, delivery accuracy rate, and inventory accuracy rate are all 100%.
  • Signing of the Supplier Corporate Social Responsibility Commitment.
  • The signing rate of information technology providers is 100%.
 SDG 8 Decent Work and Economic Growth

SDG 9 Industry, Innovation and Infrastructure

SDG 12 Responsible Consumption and Production

SDG 16 Peace, Justice and Strong Institutions

SDG 17 Partnership for The Goals
Risk management

To ensure the company’s sound operation and sustainable development, and to foster a culture of integrity and mitigate operational risks, the Board of Directors resolved in 2022 to establish the Risk management procedures and to conduct regular risk assessments. 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 prevent possible losses within the tolerable risk range. The best risk management practices are continuously 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.

螢幕擷取畫面-2025-08-18-111025
Summary of Internal Audit Progress in 2025

The internal audit procedures specify the internal control of internal audit and review of the operating procedures of the Company. The adequacy, effectiveness and efficiency of the design and routine operation of such controls are reported, covering the Company’s operations and its subsidiaries.

  • Audits are carried out in accordance with the audit plan approved by the Board of Directors. The audit plan is formulated based on the identified risks. Special audits or reviews are also carried out as needed. The comprehensive audit and special projects above provide information on the operation status of the internal control function of the management and provide management with another channel to understand the existing or potential defects in a timely manner.
  •  Internal audit: Review the self-inspection performed by each unit, including checking whether the operation is implemented and reviewing the documents to ensure the quality of execution, and compile the results of the self-inspection and the results of each cycle of audit operations, and issues an annual “Statement of Internal Control System” report to the Board of Directors.
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 2025 are as Follows:
Risk category Risk Management Measures for 2025
Operational risk
  1. The risk management procedures established by the company are approved by the Board of Directors and revised in response to operational circumstances or changes in external regulations.
  2. The Sustainability Committee under the Board of Directors has established a Risk Management Team to coordinate execution, with each operational department responsible for analyzing and monitoring related risks within their respective areas.
  3. With a focus on operational, finance, information, and environmental areas, appropriate adjustments are made when there are changes in Risk situations.
  4. Internal audit personnel conduct audits and evaluations of the implementation of internal control and report regularly to the Board of Directors.
  5. Disclose information related to Risk management in the company’s annual report, sustainability report, corporate website, and other locations as required by regulatory authorities.
  6. Strengthen internal control operations such as sustainable information management and information security, comply with legal requirements to establish plans for enhancing corporate value, and formulate guidelines for grassroots employees. Conduct a greenhouse gas inventory according to the scheduled progress.
Financial risk Each department regularly reviews various operations, strengthens the management of major assets such as accounts receivable and inventory, examines potential risks, and develops response plans.
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 2025.
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. To alleviate the potential financial risks posed by extreme weather events, businesses should pro-actively implement climate change risk management and mitigation measures to enhance their disaster resilience. For details, please refer to the section “6.1 Climate Risks” in this report.
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