Materiality Analysis and Short-,Middle-and Long-term Goals

Materiality Analysis

The materiality analysis is conducted annually based on international sustainability standards and trends, including GRI Standards, SDGs, Sustainability Accounting Standards Board (SASB), and Climate-Related Financial Disclosures (TCFD) frameworks. Materiality issues from industry benchmarks are also collected and, together with the Company’s sustainable development goals and strategies, are used to assess the impact of sustainability issues. This dual assessment considers both external impacts and internal operational relevance. The collected information, data, and stakeholder communication outcomes serve as the basis for identifying materiality issues, which are discussed and confirmed in internal company meetings. Moreover, stakeholders' requests are addressed while formulating Acter's sustainability framework to outline sustainable development directions and strategy blueprints.

Materiality Analysis Procedures
Explanation and management policies for the degree of value chain involvement in materiality issues
Goals of Materiality Issues
Materiality issues Management strategy Linking with SDGs Management Index and Goals Achievement in 2023 Short-term goal
(2024)
Key Performance Index (KPI) Goals of 2023
Environmental
policy and
management
system		 To ensure compliance with the latest environmental regulations and requirements, implement “environmental operational control procedures”, establish EHS goals and policy statements, and continuously improve the ISO energy and environmental management system.
    
 Obtain management system certification Compliance with domestic and foreign management standards V  Achieved
ISO 50001:2018
ISO 14001:2015		 Compliance with domestic and foreign management standards
Per capita energy consumption Lower than 4.58 GJ/ capita The energy consumption per capital for the business headquarters was 4.33 GJ/capita. Lower than the reference value
Climate change and energy-saving effectiveness Through an annual process of identification, analysis, calculation, reduction, and staying informed about international trends and benchmark learning, we effectively examine gaps in climate change management and continuously refine our approach, striving for progress and improvement.    Greenhouse gas emissions An absolute reduction of 2% in total GHG emissions (Types 1 and 2); and an absolute reduction of 2% in other indirect GHG emissions. V  Achieved
Types 1 and 2 emissions reduced by 14.29%; other indirect GHG emissions reduced by 5.88%.		 An absolute reduction of 5% in total GHG emissions (Types 1 and 2); and an absolute reduction of 5% in other indirect GHG emissions.
Eco-friendly
technologies		 Provide customers with eco-friendly, energy-saving solutions by applying green engineering technologies in projects, thus creating differentiation and enhancing industrial added value.    Achievements of green engineering projects At least 7 V  Achieved
14 indicative green projects, estimated to achieve a total reduction of 11,283 metric tons of CO2e GHG emissions.		 At least 8
Talent attraction and retention Devoted to recruiting, nurturing, and retaining outstanding talents, we attract and retain individuals by providing a competitive salary package, various benefits, and caring measures.      Employee participation rate in welfare activities. Over 60% of participation rate. V  Achieved
100%		 Above 65%
Internships and industrial-academic collaboration plans. Cultivate at least 7 students. V  Achieved
13 students (9 interns during the semester, 1 during the summer, 1 during the academic year, and 2 students participated in industrial-academic training plans) whose retention rate after the internship ends was 67%.		 At least 8 individuals
Comparison with base salary and salary adjustment situation. Exceed the base salary with annual adjustments. V  Achieved
Salary adjusted by 4.22% on average.		 Exceed the base salary with annual adjustments.
Hire physically/ mentally challenged people and indigenous people. Comply with and greater than statutory requirements. V  Achieved
Accounted for 1.6% of all employees.		 Comply with and greater than statutory requirements.
Promote women’s career development and enhance female workers’ long-term retention rate. More than 20% of middle-level managerial positions are held by women. V  Achieved
23％		 Above 20%
Career development, education and training Develop employee evaluation and management guidelines, establish strategic talent cultivation plans, and adhere to  the human resources (HR) training procedures of PDCA+PDDRO to continuously evolve, innovate and build a high-quality talent pool.    performance appraisal rate 100% V  Achieved
100%		 100%
Education and training achievement rate Achievement rate is 100% V  Achieved
100%		 100%
Professional skills achievement rate Achievement rate above 86%. V  Achieved
89.43%		 Above 87%
Education and training achievement rate Satisfaction level above 82 V  Achieved
Achieved a score of 88.04 points ahead of schedule		 Above 83
Human rights protection Develop Acter's human rights policies as the highest guiding principles for human rights governance, establish smooth communication channels, and create a dedicated department to handle relevant affairs, respond to related issues, and provide assistance accordingly. Human rights policy or procedures; employee training rate Training rate is above 82% V  Achieved
Achieved a score of 90.89% points ahead of schedule		 Above 83%
Occupational
health and safety		 Provide employees and subcontractors with optimal occupational safety education and training; and implement regular safety and health patrols to achieve accident prevention while enhance Acter’s disaster response capability. Critical incident in the workplace 0 critical incident in the workplace V  Achieved
0 case		 0 case
Disability injury frequency rate Below 1.5% V  Achieved
0%		 Below 1.3%
Social participation Create value for the common good with a focus on environmental sustainability, care for disadvantaged minorities, community empowerment, and the development of sustainable towns and villages."
    
 
    
 Participate in social works and volunteer activities Added a new item V  Achieved
Added one social engagement volunteer project, "Dacheng Elementary School – Wheat Cabbage Cake DIY"; and continued with the existing three long-term volunteer activity projects.		 Will add a new item
Supply chain
management		 Developed the "Code of Conduct for Suppliers" to build a sustainable responsible supply chain; and, through  green and local procurement, collaborate with suppliers to joint move towards sustainable operations.    New suppliers shall sign the “Letter of Commitment for Sustainability” The suppliers signing rate is above 100% V Achieved
100% signing rate		 100%
Conduct supplier assessment and sustainable risk evaluation each year (suppliers receiving more than 80 points are classified as Class A suppliers) The overall supplier rating is above 75. 75.1 points.
Already completed the rating of 101 key suppliers, among which 39% are Level A suppliers, 61% are Level B suppliers, and 0% are Level C suppliers. We have also targeted high-risk suppliers to initiate the “Supplier Cultivation Plan”. Through focused guidance, secondary audits, and other approaches, we assist them in complying with the Code of Conduct for Suppliers and obtaining ISO-related management system certifications to enhance their sustainability capabilities.		 Above 76
Visit important suppliers or suppliers with potential risks Visit 3 suppliers. V Achieved
4 suppliers		 Visit 3 suppliers.
Green procurement ＆Optimization of local procurement. With an increase comparing to the previous year. V Achieved
The amount reached NT$435.24 million, reflecting an increase of 15.5% compared to the previous year.		 With an increase comparing to the previous year.
Optimization of local procurement. The expenditure accounts for above 95%. V Achieved
The expenditure on local procurement reached 98.75% of the target ahead of schedule.		 Above 96%
Customer services and management Conduct customer satisfaction surveys on a regular basis; and, through reviews, analyses and improvement plans, continue to deepen customer relations. Customer satisfaction survey The average overall satisfaction level is above 90. V Achieved
91.8		 Above 90
Legal compliance Continuously check and ensure the company's compliance with up-to-date regulations; and regularly conduct education and training on ethical and legal compliance awareness for employees. Achievement rate of ethical and legal compliance awareness training The training achievement rate is above 80%. V Achieved
92.45		 Above 83%
Innovative technologies and services Continuously enhance the company's R&D momentum and annually assess the investment and effectiveness of R&D expenses to ensure our competitiveness among industry players and in terms of green engineering R&D.    The proportion of R&D expenses to total revenue. The R&D expenses account for more than 0.85% of the total revenue. V Achieved
1.47		 Above 0.88%