Precision Governance|ESG Risk Strategy

ESG Risk Strategy

Nuvoton always explore new markets actively, continuously maintaining the profitability of the company's operations, and investing in strategic patent layouts. To ensure integrity in management and compliance with laws, it constantly monitors domestic and international policies and emerging risks that may affect the company. It regularly promotes the core values of integrity in management, establishes a robust corporate culture, and develops a sustainable new situation.

SDGS
SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation and Infrastructure

100

%

Integrity management education and training

5.77

NTD

EPS

4954

Patents Granted

Accumulated approved patents globally

ESG Risk Strategy

In response to the changing global economic environment and the operational impacts caused by sustainability risks, Nuvoton is committed to integrating the entire organization into its scope of risk management.

The company adopts its own risks as management items and introduces best practices for continuous management. In Taiwan, the Sustainable Development Committee is responsible for identifying relevant risks that may impact the company’s sustainable development and devising subsequent strategies to realize the vision of sustainable development. This approach aligns with the key concerns of stakeholders and international trends. The risk management process involves identifying, assessing, responding to, and tracking risks based on the company’s core business and external environmental conditions, covering economic, environmental, and social aspects of sustainability.

In Japan, the Risk Management Promotion Committee has been established, chaired by the President of Nuvoton Japan. This committee is responsible for establishing, operating, and continuously improving the risk management system of Nuvoton Japan. It conducts company-wide risk assessments annually, selects major risks for the year, formulates response plans, and reports the status of their implementation to the management team quarterly. For results from the risk assessment of Nuvoton Japan in 2023, please refer to the company’s official website.

TypeMaterial TopicRisk Assessment ItemsRisk Performance Indicator
GovernanceRisk ManagementTo reduce the negative impact and losses caused by significant risk events, protect the interests of stakeholders, and maintain the company's reputation.By implementing risk management policies and measures, we aim to reduce the impact of various risks on our company's operations while also striving to turn risks into opportunities.
Information Security Risk Control MeasuresThe confidentiality, integrity, and availability of all physical and electronic information assets of the website, to ensure compliance with regulatory, operational, and contractual requirements.Develop policies, procedures, control measures, and training to ensure the protection of the organization's information and customer privacy.
Regulatory ComplianceRegularly conduct assessments of the applicability and compliance of newly added or amended regulations.Conduct regulatory inspections regularly to ensure that applicable laws are updated in a timely manner and that management practices comply with regulatory changes.
EconomicBusiness Strategy and Operational PerformanceActively pursue globalization to enhance the company's international visibility; continuously improve productivity and reduce costs; develop market strategies and explore new markets to maintain industry leadership.Develop comprehensive and forward-thinking business strategies to strengthen the company's operational performance and fulfill responsibilities to shareholders.
Customer SatisfactionRegularly conduct customer satisfaction surveysRegularly conduct customer satisfaction surveys and develop strategies to improve satisfaction based on customer feedback, continuously enhancing the delivery of products and services.
Innovative research and development managementBy implementing innovative research and development management, maintain the company's leadership position in the industry and continuously provide customers with products featuring cutting-edge technology.Regularly disclose the amount of research and development expenditures, as well as the number of newly acquired patents.
EnvironmentEnergy Resources ManagementPromote and analyze energy consumption management's importance to the business, strengthening the company's operational resilience in the face of climate change risks.Establish an energy management policy and maintain a management system to ensure the company's operational resilience regarding climate change issues.
Greenhouse Gas EmissionIn accordance with the company's sustainable management strategy, we continuously reduce the use and emission of greenhouse gases through process optimization, installation of energy-saving and carbon-reducing equipment, and the participation of all employees.To effectively respond to and mitigate climate change, we continuously set carbon reduction targets in accordance with international standards and undertake comprehensive actions to mitigate climate change.
PeopleInfectious DiseaseTo ensure a safe and healthy working environment for our employees, appropriate control measures should be implemented for any hazards that may arise in the workplace or during operations due to the pandemic.Systematic mobilization and integration of relevant departments are undertaken to minimize personnel health injuries, economic losses, and business impacts caused by the pandemic.
Human RightsWe must adhere to domestic laws and regulations such as the Labor Standards Act and international conventions such as the United Nations Universal Declaration of Human Rights to ensure the labor rights of our colleagues.Establishing a code of conduct for sustainable development, management policies, and procedures are developed based on this code. All colleagues are required to adhere to the guidelines.
Ethics and Integrity.Ensure that colleagues adhere to ethical behavior and integrity in business operations for the purpose of sustainable development of the company.Provide comprehensive education and training,and require all units to follow and implement relevant regulatory requirements.

Business continuity policy and Busines continuity management (BCM) practice

Nuvoton defines risk is an unexpected event, measured in terms of likelihood and consequences, that may adversely affect Nuvoton's operations or the achievement of Nuvoton's objectives.

 

Nuvoton maintains the risk and crisis assessment and management programs to protect the continuing business interests of the company and our major stakeholders, including our customers. Nuvoton’s ultimate objective is to keep our commitment to uninterrupted business operations, and it is a shared responsibility of the management team together with all of our employees to achieve this objective.

Nuvoton's business continuity policy and BCM practices include:

• Nuvoton's commitment to applying risk management practices throughout the organization;

• Nuvoton's objectives in managing corporate risks;

• Nuvoton's commitment to world best practice and continuous improvement

to achieve the practices, Nuvoton will:

• Allocate adequate resources;

• Establish and implement standard procedures;

• Monitor and review periodically risk management procedures and make appropriate modifications;

• Effectively communicate with stakeholders internally and externally, including our employees, suppliers, and customers;

• Emphasize the shared responsibility of the CMT together with all of our employees to achieve this objective;

•  This practice will be reviewed and revised by management periodically.