Stakeholder Engagement｜Management Approach
Management Approach
Nuvoton Taiwan and Nuvoton Japan have both established Sustainability Development Committees, each supported by five Task Forces. Based on the material topics identified for the year, these teams define short-, mid-, and long-term objectives and develop corresponding annual action plans. Progress against these plans is reviewed and reported every half year, and annual implementation results are regularly reported to the Board of Directors.
| Material Topics | 2025 Targets | Achievements in 2025 | 2026 Short-Term Goals | 2030 Mid- & Long-Term Goals |
|---|---|---|---|---|
| Integrity operation and corporate governance | Corporate Governance Evaluation (listed companies) within 20% | Achieved | Corporate Governance Evaluation (listed companies) within 20% | Corporate Governance Evaluation (listed companies) within 5% |
| All directors complete mandatory continuing education hours | Achieved | All directors complete mandatory continuing education hours | All directors complete mandatory continuing education hours | |
| 100% of directors and employees complete compliance-related training | Achieved | 100% of directors and employees complete compliance-related training | 100% of directors and employees complete compliance-related training | |
| Ensure compliance with applicable domestic and international regulations, with no material violations | Achieved | Ensure compliance with applicable domestic and international regulations, with no material violations | Maintain 0 material violations of applicable laws and regulations | |
| Risk management | Update the risk management framework | Achieved | 100% identification of newly issued corporate governance–related regulations on a quarterly basis | 100% identification of newly issued corporate governance–related regulations on a quarterly basis |
| 0 information security incidents affecting company operations | Achieved | 0 information security incidents affecting company operations | 0 information security incidents affecting company operations | |
| Maintain a 100% completion rate for information security training for all staff | Achieved | Maintain a 100% completion rate for information security training for all staff | Maintain a 100% completion rate for information security training for all staff | |
| Supply chain management | Complete verification for 57% of major suppliers1 through RBA VAP2 | Achieved | Complete verification for 71% of major suppliers through RBA VAP | Complete verification for 79% of major suppliers through RBA VAP |
| Have 93% of major suppliers publish ESG reports | Achieved | Have 93% of major suppliers publish ESG reports | Have 100% of major suppliers publish ESG reports | |
| 100% response rate for the supplier sustainability activity assessment survey (biennially) | Achieved | 100% response rate for the supplier sustainability activity assessment survey | 100% response rate for the supplier sustainability activity assessment survey | |
| 100% response rate for the SVHC (Substances of Very High Concern) survey | Achieved | 100% response rate for the SVHC survey | 100% response rate for the SVHC survey | |
| Productivity and business performance | Organize 24 digital transformation events and training sessions annually | Exceeded3 | Organize 45 digital transformation events and training sessions annually4 | Organize 72 digital transformation events and training sessions annually |
| - | - | Management and directors conduct quarterly strategy workshops | Management and directors conduct quarterly strategy workshops | |
| Innovation in research and development | Obtain the Taiwan Intellectual Property Management System (TIPS) certification | Achieved | Maintain the validity of TIPS certification | Achieve TIPS AA-level certification |
| - | - | Achieve 140 patent applications annually | Maintain a global patent portfolio of 2,000 patents | |
| - | - | AI-related patent applications to account for more than 30% of total annual patent filings | AI-related patents to represent 10% of the global patent portfolio | |
| Continuously introduce advanced technologies to reduce the on-resistance of TMOS in smartphone lithium batteries | Achieved | Continuously introduce advanced technologies to reduce the on-resistance of TMOS in smartphone lithium batteries | With the growth of the electric vehicle market, we will continue to develop and enhance the sales of in-vehicle BMS products. | |
| Green products | The number of products using advanced processes grows by more than 60% compared to 2023 | Exceeded | Grow the number of products using advanced processes by more than 70% compared to 2023 | Grow the number of products using advanced processes by more than 90% compared to 2023 |
| Green product sales accounts for 3% of total sales | Exceeded | Reach more than 6% of total sales from green products | Reach more than 15% of total sales from green products | |
| Energy and greenhouse gas management5 | Reduce scope 1 and scope 2 emissions by 18.2% from the 2022 SBT baseline6 | Exceeded | Reduce scope 1 and scope 2 emissions by 24.3% from the 2022 SBT baseline | Reduce scope 1 and scope 2 emissions by 48.8% from the 2022 SBT baseline |
| Reduce Scope 3 emissions by 7.1% from the 2023 SBT baseline | Exceeded | Reduce Scope 3 emissions by 10.7% from the 2023 SBT baseline | Reduce Scope 3 emissions by 25% from the 2023 SBT baseline | |
| Reduce fluorinated greenhouse gas (F-gas) emissions in Nuvoton Taiwan by 88% compared to the 2021 baseline | Achieved | Reduce fluorinated greenhouse gas (F-gas) emissions in Nuvoton Taiwan by 88% compared to the 2021 baseline | Reduce fluorinated greenhouse gas (F-gas) emissions in Nuvoton Taiwan by 88% compared to the 2021 baseline | |
| Reduce electricity consumption in Nuvoton Taiwan by 5% compared to the 2021 baseline | Achieved | Reduce electricity consumption in Nuvoton Taiwan by 6% compared to the 2021 baseline | Reduce electricity consumption in Nuvoton Taiwan by 10% compared to the 2021 baseline | |
| Water Resource Management | Achieve a 2.6% reduction in total water withdrawal in 2024 through water-saving initiatives | Not Achieved7 | Achieve a 2.3% reduction in total water withdrawal in 2025 through water-saving initiatives | Reduce total water consumption by 10% compared to the 2021 baseline |
| Talent management8 | Strengthen employer branding and expand recruitment channels | Achieved | Strengthen employer branding and expand recruitment channels | Enhance retention mechanisms and optimize compensation and benefits, maintaining overall annual compensation within the top 25% of listed companies |
| Average employee training hours: Nuvoton Taiwan: 36 hours; Nuvoton Japan: 12 hours | Achieved | Average employee training hours: Nuvoton Taiwan: 40 hours; Nuvoton Japan: 24 hours | Average employee training hours: Nuvoton Taiwan: 65 hours; Nuvoton Japan: 30 hours | |
| Promote career development | Achieved |
| Achieve an 80% completion rate for talent pipeline training programs | |
| Occupational Safety and Health | Occupational safety training completion rate: Nuvoton Taiwan: >95% Nuvoton Japan: >90% | Achieved | Occupational safety training completion rate: Nuvoton Taiwan: >96% Nuvoton Japan: >95% | Occupational safety training completion rate: Nuvoton Taiwan: >97% Nuvoton Japan: >96% |
| 100% completion rate for occupational health and safety training for new employees | Achieved | 100% completion rate for occupational health and safety training for new employees | 100% completion rate for occupational health and safety training for new employees | |
| Nuvoton Japan: 100% improvement rate for risk register items | Achieved | Nuvoton Japan: 100% improvement rate for risk register items | Nuvoton Japan: 100% improvement rate for risk register items | |
| Nuvoton Taiwan: Reduce the Case Incident Rate per Thousand Workers by 50% from the baseline average of 1.81 (target: <0.9) | Exceeded | Nuvoton Taiwan: Reduce the Case Incident Rate per Thousand Workers by 55% from the baseline average of 1.81 (target: <0.8) | Nuvoton Taiwan: Reduce the Case Incident Rate per Thousand Workers by 60% from the baseline average of 1.81 (target: <0.7) | |
| Nuvoton Japan: Target to increase the number of healthy lifestyle habits through the “Lifestyle Clinic Program” to 3.47 | Not Achieved9 | Nuvoton Japan: Target to increase the number of healthy lifestyle habits to above 3.46 through the Lifestyle Clinic Program | Nuvoton Japan: Target to increase the number of healthy lifestyle habits to above 3.47 through the Lifestyle Clinic Program | |
| Nuvoton Taiwan: Employee cancer screening rate >65% | Exceeded | Nuvoton Taiwan: Employee cancer screening rate >70% | Nuvoton Taiwan: Employee cancer screening rate >75% | |
| 0 occupational disease cases | Achieved | 0 occupational disease cases | 0 occupational disease cases |
1 For Nuvoton Taiwan, major suppliers are defined as those on the Approved Vendor List (AVL) that account for the top 90% of total procurement spend. For Nuvoton Japan, major suppliers are defined as Tier 1 suppliers, including all suppliers providing materials used in products as well as those involved in outsourced manufacturing.
2For detailed supplier management indicators and targets, please refer to Sustainable Supply Chain Management.
3The Group conducted a total of 57 digital transformation events and training sessions in 2025.
4As the adoption of digital and AI tools has approached a more mature stage, the Company plans to reduce the number of organization-wide enablement sessions in 2026. Instead, it will shift toward in-depth workshops conducted in collaboration with individual departments, integrating digital and AI applications into their workflows. Both the format and frequency of these initiatives will be adjusted accordingly.
5 Energy and Greenhouse Gas Management includes content related to both "Energy and Greenhouse Gas Management" and "Climate-Related Risks and Opportunities."
6Nuvoton aligned the baseline year for its Scope 1 and Scope 2 greenhouse gas emissions with its Science Based Targets initiative (SBTi) targets, and therefore adjusted the baseline year to 2022.
7 The originally estimated water-saving performance was based on the previous year's production capacity and operating conditions. However, due to changes in capacity and production mix in 2025, the actual water-saving results were recalculated based on 2025 operating conditions, resulting in variances from the original estimates.
8 Talent management includes "Remuneration and benefits and employee care," "Talent recruitment and cultivation," "Human rights and equality" and "Labor relations."
9The decrease in remote working arrangements led to a decline in the average number of healthy lifestyle habits, including sleep patterns and alcohol consumption.