Employee Communication and Benefits

Employee Human Rights and Employee Rights Protection

Human Rights Management

Advantech has formulated the Advantech Human Rights commitment to protect the basic human rights of all employees, suppliers, customers and stakeholders. We consider the international human rights framework, Company development strategies and external trends, including the Universal Declaration of Human Rights, the United Nations Global Compact, and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work. We comply with the laws and regulations of the locations in which the Company operates, and we formulate human rights policies in accordance with the United Nations Guiding Principles on Business and Human Rights.

Employee communication Employee communication

Advantech also has a human rights risk investigation process, regularly conducting impact assessments and overseeing management improvement for targets of concern. In human rights risk investigations, relevant internal audit committees will select relevant risk topics (covered by "Human Rights Risks"), and then review the risk ratings of each issue and identify high-risk groups for management. No complaints of discrimination and harassment occurred in 2021.At the same time, Advantech’s employees are also required to abide by the Advantech Business Conduct and shall not engage in any discrimination or other human rights violations. In order to ensure that all employees understand and abide by the above policies, the Company conducts education and training on the Advantech Business Conduct as well as laws and regulations every year. In 2021, the education and training coverage rate of the Advantech Business Conduct was 100% (indirect labor employees), and the training completion rate was 93%.
*Note: For direct employees, the Advantech Taiwan Manufacturing Center (factory) regularly conducts education and training on the Advantech business Conduct including anti-discrimination and antiharassment every year, with a coverage rate of 100%.

Human Rights – Commitment

Advantech Co., Ltd. (hereinafter referred to as Advantech) respects and supports the internationally recognized human rights regulations and principles, including the “Universal Declaration of Human Rights,” “The United Nations Global Compact,” and the “Declaration on Fundamental Principles and Rights at Work” of the International Labour Organization. Advantech complies with local regulations where the company is located, and it establishes human rights policies based on the United Nations Guiding Principles on Business and Human Rights.

Scope of application:Advantech’s human rights policies are applicable to the Advantech Group and its joint ventures. Through the aspects of protection, respect, and remedy in the human rights management framework, we strive to reduce human rights risks in employees, suppliers, cooperating partners, and our environment, or we use remedial measures to reduce the impact of human rights incidents.

Human Rights Commitment Principles

1. We firmly believe that respecting and protecting human rights is an important foundation for the sustainable operation of a business.
2. We take human rights issues into consideration in all aspects of our operations.
3. We provide unimpeded communication channels for stakeholders.

Human Rights Commitments

We provide a work environment that is safe and healthy, and free from discrimination and harassment.

The working environment we provide complies with environmental regulations; and environmental pollution is avoided by means of proper management and technical applications.

Child labor prohibition: We comply with local minimum age laws and regulations and do not employ child labor.

Elimination of unlawful discrimination and ensuring of equal job opportunities: Discrimination is prohibited based on race, skin color, age, gender, sexual orientation, religion, disability, labor union membership, or political affiliation. Every person has the right to equal protection without any sort of discrimination.

No inhumane treatment: We prohibit harassment, physical abuse, or threats of same.

Forced labor prohibition: We ensure the absence of forced or involuntary labor and that the overall conditions of employment are voluntary.

Meeting base salaries and gradually introducing living wage considerations: We provide employees with minimum wages and benefits that meet or exceed the minimum required by local laws and regulations. Furthermore, we confirm whether an employee's salary is sufficient to support the local living standard, striving to pay a fair and full living wage on time with legal deductions stated on the pay slip.

We have created a stage for open management, allowing talent to be utilized to its fullest and providing all employees with a working environment of mutual trust and respect as well as health and safety.

Employee training and self-development: We provide facilities, training programs, time, and subsidies to support employees' professional development.

We support and assist employees in maintaining their physical and mental health and work-life balance.

We respect the freedom of association and the effective recognition of the right to collective bargaining. We have established diverse communication channels between employers and employees and provide grievance mechanisms.

Establishment and disclosure of management projects

Advantech complies with relevant regulations and international human rights conventions to establish relevant management policies and procedures Advantech complies with relevant labor regulations and international labor and human rights conventions and has established the Employee Business Conduct and Employee Handbook. Both of them are published on the employee website so that employees and managers may refer to them. Advantech respects the equal employment and career development opportunities of employees. It does not treat people differently or discriminate against them due to factors such as their gender, race, religion, political persuasion, sexual orientation, occupational level, nationality,or age. We strive to provide our employees with a safe and high-quality work environment. Policy-wise, we comply with various employment and labor regulations. We strictly prohibit hiring child labor or illegal workers. We strictly forbid sexual harassment. We promise to offer employees a safe and healthy work environment that meets various environmental protection regulations. By using adequate management and technologies, we prevent polluting the environment.

Advantech has established an employee complaint mechanism and channels and adequately handles complaints. On the internal website for employees, Advantech has established the Suggestion Box, encouraging employees to adopt positive thinking and offer suggestions, including work procedure improvements, environmental improvements, product suggestions, or cross-departmentoperations, thereby establishing a culture that promotes participating in the operation of the company and encourages employees to provide suggestions at any time. When the Human Resources Department receives a proposal from an employee, they will transfer them to the relevant department head for assessment and consideration of what requires improvement. After the proposal content is carefully assessed and the case is closed, the employee who made the proposal will receive relevant information about the case being closed.

Advantech offers its employees a safe and healthy working environment. It alsoregularly implements health and safety education to its employees Advantech offers its employees a safe and healthy working environment that is certified by the occupational health and safety management system. We offer employees annual health checks that go above and beyond requirements stated in the Labor Standards Act. We incorporate health and safety education content into a bimonthly orientation for new employees.

Advantech has established mechanisms to communicate with employees regularly, and it uses reasonable methods to announce changes in operations that may cause major impactson employees Advantech regularly holds all employee meetings, manager meetings, department meetings, andgroup meetings to deliver the company’s operation results, future strategic development directions, and major changes in operations. In addition, by using the company journal, internal employee website, and the Advantech Executive Talks platform, we share the company’s management philosophy as well as the atest operation information and changes in real time.

Advantech establishes effective career capability development and cultivation plans Through the Advantech Academy, Advantech plans diverse courses to establish an effective career capability development and cultivation plan for its employees. We also adequately reflect the company’s operation performance and results on the policy of employee salaries to ensure therecruitment, retainment, and encouragement of human resources, thereby achieving the goal of sustainable operation.

Advantech has established relevant policies to protect consumer rights and procedures for them to raise complaints regarding research and development, procurement, production,operation, and service procedures. Advantech has established policies to protect consumer rights and consumer complaint procedures. Wehave also established procedures, such as a quality feedback system, customerservice platform, and return and repair operation guidelines, to ensure adequate handling.

Marketing and labeling compliance with relevant regulations and international principles Advantech’s marketing and labeling of products and services all comply with relevant regulationsand international principles. Our products comply with international environmental protection regulations. From the effective use of natural resources to the prohibition of the use of hazardous substances and to life cycle assessment (LCA) of the proper management of waste, we 100% comply with relevant regulations of international green products. Advantech promotes green products from three aspects, namely safety, energy conservation, and environmental protection. We also announce product information and international standards on our company website forclients and consumers to understand.

Before Advantech conducts business with a supplier, it assesses whether the supplierhas a history of affecting the environment and society. All suppliers and contractors of Advantech must sign a Corporate Social Responsibility Agreement before signing a contract with Advantech so that Advantech can avoid trading with companies that contradict Advantech’s CSR policies. On the agreement, we require the suppliers and contractors to comply with the SA8000 Standard on social responsibility, Electronic IndustryCitizenship Coalition (EICC) Electronic Industry Code of Conduct, ISO 14001 environmental management standard, OHSAS 18001 Occupational Health and Safety Assessment Series, and local regulations on employee rights, health and safety, environmental protection, and business ethics.

Advantech’s contracts with its major suppliers include clauses that specify if the supplier violates Advantech’s CSR policies in a manner that has a substantial impact on theenvironment and society, Advantech may terminate or rescind the contract at any time. The Corporate Social Responsibility Agreement signed by Advantech’s suppliers includes clauses that specify if the supplier violates the agreed CSR policies and yielded substantial impact on the environment and society, Advantech may terminate or rescind the contract at any time. Signing the agreement is necessary for all suppliers and contractors prior to them conducting business with Advantech.

Freedom of Association

We support various employee self-organized associations and trade union activities at different levels in each region. (For example, Advantech‘s branches in Germany, the Netherlands, and Japan all have labor unions, and our branch in France also has labor representatives) promoting equal rights and interests of employees everywhere.In Europe, some parts of Advantech Germany (Advantech Europe B.V. and Advantech GmbH.) and Advantech Netherlands have labor unions initiated by employees (Worker Councils). They will regularly elect employee representatives from the labor union organization, and the representatives of the labor union organization will regularly hold labor-management meetings with the Company on employee-related issues and exercise the right to collective bargaining. Advantech France also regularly elects labor representatives who speak out for employee-related issues and conduct labor-management meetings.

In Asia, Advantech Japan has established a trade unions the accounts for 58% of all Advantech employees in Japan (including the Japan factory). Advantech China (including factories) organizes representatives through the Employee Welfare Committee to regularly discuss and make decisions on employee welfare-related issues. Advantech Taiwan also has organized and operates an Employee Welfare Committee. In addition, Advantech‘s Taiwan factories (the Donghu and Linkou factories) hold regular labor-management meetings on a quarterly basis to communicate issues of labor rights and interests (including salaries, attendance and benefits, etc.), listen to the voices of colleagues, and discuss and make decisions on key issues. Advantech hopes to minimize human rights conflicts. Therefore, the following management measures are implemented among employees, suppliers and customers; and we publicly disclose the relevant methods.

Employee Welfare System

We comply with relevant laws and provide various insurances and benefits, including superannuation, group insurance, and overseas travel insurance for business trips to ensure that employees are safe and healthy at work and in their personal lives.

We realize that life shouldn’t be all about work. We sincerely hope that all of our employees can maintain physical and mental health and a sense of personal happiness, and for this we offer a range of welfare projects. For example, we provide 5 days paid sick leave, allow staff to have daily tea breaks with all-you-can-drink beverages, host seasonal birthday parties, and provide department-based dining subsidies to build positive relations among colleagues and create a more positive team atmosphere. We also organize art and cultural activities such as exhibitions and performances to cultivate diverse interests and help employees maintain a balanced and relaxed life.

List of Benefits by Region

List of Benefits by Region List of Benefits by Region

Retirement System

Taiwan: The pension provision system is divided into two categories. We comply with the monthly provision in accordance with the law and they are allocated in full.

1.For those retirement reserves that are allocated monthly in accordance with the provisions of the old system of pensions, they are managed by the Labor Retirement Reserve Supervision Committee and deposited into a special bank account in Taiwan in the name of the Committee.

2.The new system of pensions allocates 6% of monthly salary to employees' individual pension accounts. Employees are also required to allocate 0% to 6% of their salaries to the individual pension account each month according to their personal wishes; and the Company deducts the amount of the provision from the employees' salaries on a monthly basis.

Mainland China: In accordance with the relevant laws and regulations for retirement in mainland China. Employees who have paid into the statutory social insurance for 15 years can receive monthly pensions after retirement. Retirement age according to labor law: the retirement age for male employees is 60. The retirement age for female executives is 55, while the retirement age for female employees is 50 years old.

Japan: In accordance with the law, 9.15% is allocated to the government annuity account on a monthly basis. In addition, 1.73~2% of total monthly salaries are paid to the bank pension accounts.

Employee Stock Ownership

In order to attract and retain outstanding talent to the Company, and to enhance employee motivation and commitment to the Company, so as to jointly create benefit for the Company and its shareholders, pursuant to Article 28-3 of the Securities and Exchange Act and of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers issued by the Financial Supervisory Commission and other relevant regulations, we have formulated the Company’s procedures for issuance of employee stock option certificates and for stock subscription. For relevant information, please refer to the Annual Report.

COVID-19 Response

Each item of Advantech‘s pandemic prevention actions are not only guided by the Central Epidemic Command Center but also adjusted at any time by a rolling response mechanism according to the Company’s circumstances. Beginning in May 2021, Taiwan’s pandemic situation became severe. After the initiation of a level-three alert, the Company sought to sustain the physical and mental health of colleagues through the following pandemic prevention measures:

Made immediate announcements of pandemic prevention information on the EZ bulletin board and in the Covid-19 staff area

Initiated the work from home (WFH) mechanism for colleagues to redirect their work

Colleagues took out pandemic prevention insurance and vaccine insurance (all colleagues in service before June 11, 2021 are insured)

Implemented quick corporate screening (a total of eight sessions including colleagues and third-party manufacturers, with more than 3,000 individuals examined)

Further distributed home rapid screening reagents to colleagues (more than 1400 registrations)

In order to let colleagues know information quickly, we also used the LINE community as a channel for instant messaging. We used this channel to remind colleagues of various pandemic prevention measures and update colleagues‘ health statuses and other information. Furthermore, community voting enabled us to understand colleagues' views, efficiency, and suggestions in respect to WFH.

COVID-19 Response COVID-19 Response

Employee Relations and Communication

Advantech has set up multiple two-way communication channels in order to maintain smooth and harmonious employee relations. In addition to disseminating information, we also immediately listen and respond to the voices of colleagues. Through colleagues' suggestions, we improve and optimize employee service content and workplace harmony and thereby ensure employees’ rights.

Employee communication

Employee communication Employee communication

Employee complaints

Complaint channels: Complaint hotline, email, suggestion box (EZ) with business group personnel unit.