The year 2024 was marked by global turbulence, with geopolitical developments having farreaching impacts. Major countries such as the USA, the UK, Japan, and Korea experienced shifts in political leadership and policy direction. Notably, the election of Donald Trump as President of the United States has resulted in actions such as trade wars and withdrawal from significant international organizations. Whether it involves the decision to exit the Paris Agreement once again or the repeal of a series of policies promoting diversity and equity, these developments have rendered the advancement of ESG issues increasingly challenging.

Despite these global headwinds, Chicony remained steadfast in driving ESG initiatives throughout 2024. After years of continuous effort, we recognized the need for a dedicated department to lead and coordinate sustainability strategies. In May, we established the ESG Sustainability Office, appointing senior executives to serve as Chief Sustainability Officer (CSO) and Vice Chief Sustainability Officer, underscoring our strong commitment to sustainability.

Our initiatives in 2024 centered on a Twin Transformation strategy:

Sustainability Transformation: As 2024 became the hottest year on record, we carried forward our climate goals set in 2023, achieving “Chicony 2050 Net-Zero” and “2030 RE100,” and launched multiple supporting projects.

First, we strengthened internal awareness of the Company’s net-zero commitment by partnering with the Industrial Technology Research Institute (ITRI) to launch a “Corporate Sustainability and Net Zero Program.” This 47-hour course laid the foundation for embedding net-zero thinking within the organization, planting seeds we hope will bear fruit in the future. At the same time, we also completed our first comprehensive greenhouse gas (GHG) inventory and third-party verification covering 100% of our consolidated revenue-generating sites. We reset our baseline year, formally extending our net-zero target across the entire organization. Furthermore, we achieved a strong result in renewable electricity usage, reaching a 44% renewable energy share (RE44) across our global production and operational sites. These outstanding achievements enabled us to receive an “A-” rating and “Leadership Level” for the second time in the global CDP Climate Change questionnaire, reflecting our commitment to addressing key climate issues.

In 2024, we also launched a project aligned with IFRS Sustainability Disclosure Standards S1 and S2 (IFRS S1/S2). We completed the TCFD Quantification Project and advanced the TNFD initiative to the Assess phase. In 2025, we plan to publish our second TCFD Report and our first TNFD Report. This demonstrates our commitment to integrating financial data with sustainability issues in response to the expectations of both government authorities and investors

To disseminate sustainability awareness throughout the entire value chain, we have integrated supply chain documentation from various manufacturing sites and conducted multiple supplier conferences. These initiatives aim to identify key suppliers and assess their sustainability risks. This approach not only encourages suppliers to collaboratively discuss a sustainable future but also mitigates the sustainability risks we may encounter from our suppliers.

Digital Transformation: Beginning in 2023, we have been gradually developing the ISO 14064 Carbon Emission Management System and the ISO 14067 Product Carbon Footprint System. By 2024, both systems were fully implemented and operational. The former has already been used for this year’s GHG verification, while the latter is being progressively integrated with internal company systems, with the goal of achieving automation. Looking ahead, we plan to continue introducing various sustainability-related systems to reduce manual workload and improve efficiency.

We continue to operate with a spirit of integrity, engaging with internal stakeholders to create a high-quality workplace environment and offering salaries that exceed the industry average. In relation to external stakeholders, we project a consolidated revenue of NT$101.478 billion for 2024, with both net profit after tax and earnings per share reaching historic records of NT$9.045 billion and NT$12.43, respectively. Our overall sustainability performance gradually gained recognition and affirmation from various external evaluations, including inclusion in the Taiwan Stock Exchange's Taiwan Mid-Cap 100 Index, the Taiwan Sustainability Index, the Corporate Governance 100 Index, the FTSE4Good Emerging Markets Index, selection in Business Weekly's Top 100 Carbon Competitiveness List, and a ranking of 29th in CommonWealth Magazine's Excellence in Corporate Social Responsibility Award. In 2025, we will maintain a proactive commitment to long-term sustainability by collaborating with both internal and external stakeholders to shine together and shape a better future.