Diversity and Inclusion

Advantech Global Diversity and Equality Policy

Advantech has long been actively promoting gender equality in the global workplace in order to promote workplace diversity and work equality. For example, there is no gender difference in the salary system; there is a fair and just performance appraisal and promotion system; we have flexible working hours to support women in management positions; and we place emphasis on women‘s family care.We ensure that employment conditions are not affected by gender, race, religion, political affiliation, marital status, or differential treatment in salary. Advantech has established a clear recruitment strategy around the world to strengthen the diversity of employees, and has gradually eliminated basic differences caused by the influence of physical or psychological conditions of employees through internal diversified training and talent development channels. Furthermore, we regularly review the salary and reward-related indicators of various regions and of each type of work and ranking to ensure the implementation and creation of a diverse and equal workplace environment.

Employee communication

Advantech is a manufacturer in an industry dominated by high tech. Nonetheless, our proportion of female employees has increased annually in the past three years to reach 42% currently. Out of this, the proportion of female supervisors in Advantech is 25% (or a 92.7% retention rate). It is estimated that in 2025, the proportion of female employees in Advantech Taiwan will remain between 40% and 45%.; and the proportion of female supervisors will remain between 23% and 26%.More than a quarter of Advantech‘s global headquarters management team is made up of female executives (Executive Team - Advantech). In 2017, Ms. Linda Tsai was promoted to President of Industrial-IoT Group, becoming the top female executive among the three co-governing presidents. This reflects the generational heritage and gender equality among our professional managers.

Evaluation and Promotion System

In Advantech‘s evaluation and promotion system, we ensure that gender discrimination or pregnancy or family care leave for female employees does not affect the results of performance evaluations or promotions. Advantech’s performance appraisal and employee promotion policies are based on colleagues‘ job responsibility expectations and annual performance appraisal goals. Furthermore, this is fully disclosed in Advantech‘s performance appraisal system on the basis of complete fairness and full two-way communication between supervisors and employees.

Evaluation and Promotion System Evaluation and Promotion System

Living Wage

When exploring human rights risk factors for wages and benefits, we believe that that it is important to consider a living wage to improve the living conditions of workers. We continue to discuss the problems and opportunities of introducing a “living wage” and look forward to a relevant pilot methodology in 2022. Adopting the framework suggested by Anker (2011) and by Anker and Anker (2017), we shall construct a Companyspecific living wage and compare it with the prevailing wage to determine whether employee salaries are sufficient to support local standards of living. In the future, this will gradually expand to Advantech‘s key suppliers and contractors.

Parental Leave/Family Care Leave/ Work From Home

In accordance with Article 16 of the Gender Equality in Employment Act, after a staff member has been employed for six months he or she may make an application for parental leave of absence before each of his or her children reaches the age of three; applications may be made until the child reaches the age of three, but the period shall be effective for not more than two years. Advantech‘s employees in Taiwan enjoy parental leave in accordance with the law, but there are no regulations concerning parental leave in mainland China. Japan’s labor laws also stipulate that for children under one year old, applications may be made for parental leave. During the period of leave, salaries are subsidized by the Japanese government. At Advantech Japan (including the Japanese factory), the number of employees applying for parental leave in 2021 was five, with 100% reinstatement.Among all Advantech Taiwan employees in 2021 (including male and female employees), the parental leave application rate was 7.85% and the reinstatement rate was 53.85%. Those who continued to work for more than one year after reinstatement from childcare leave in 2020 (retention rate) was 71.43%. Compared to 2020, both the application rate and the reinstatement rate have increased.* Among them, the application rate and reinstatement rate of female employees are much higher than those of male employees.

In addition, Taiwan faced the impact of a local pandemic outbreak in 2021. Under these circumstances many female employees faced the dual responsibility of work and family care, putting them under considerable pressure. In order to help female employees to balance the pressure of family care and work in the social system, Advantech strongly supports employees in applying for family care leave and work from home to balance new work models under the pandemic.

Evaluation and Promotion System Evaluation and Promotion System

Hiring of Persons with Disabilities

According to Taiwan's People with Disabilities Rights Protection Act, the number of persons with disabilities employed by an enterprise shall not be less than 1% of the total number of employees. If the weighted total value does not meet the standard, the Company is required to make regular "difference subsidy” payments into the employment fund for people with disabilities overseen by the competent labor authority.

Advantech applied for employment of 31 persons with disabilities according to law, and by the end of 2021 employed 26 persons with disabilities. The employment weighted ratio has not yet reached 1% of the total headcount ratio. The main reason for undertaking a manpower policy review is that resume conditions do not meet vacancy requirements, and the difference subsidy has been paid according to law. Furthermore, we will continue to actively pay attention to the resumes of people with disabilities through government employment counseling agencies, and expected that the required number will be filled in the first half of 2022. In addition, all employees with disabilities are employees who actually participate in the Company's work and business. Before onboarding, Advantech focuses on an individual's physical or mental disabilities to assist colleagues in understanding actual conditions such as commuting lines, work flow, and so on. Furthermore, we provide appropriate personnel, equipment, and working environment assistance after their onboarding so that these colleagues may work with peace of mind.