Sustainability Strategy

Visions, Goals, and Strategies

In August–September 2020, Advantech ran the 2025 Vision Depiction Workshop. In September, we officially established the 2025 Vision Declaration, and ESG is a critical part of this. Advantech’s ESG Vision Declaration is as follows: “Emphasize environmental, social, and corporate governance topics, implement Lita co-enrichment, and enable an intelligent and sustainable planet.”



Advantech’s ESG vision began with our corporate vision of “Enabling an intelligent planet.” Considering our core competitiveness, key development strategies, and response to the UN SDGs, we aim to leverage our AIoT core competencies and smart solutions to assist in realizing SDG 7 and SDG 13 for improved energy efficiency, energy-saving in buildings and in manufacturing, and low carbon emissions in logistics and retail. Through our open, innovative environment and education efforts aimed at popularizing IoT platforms and solutions, we seek to provide outstanding education (SDG 4) and promote partnerships (SDG 17).

Advantech 2025 Vision and our focuses on UN SDGs

Concrete Promotion Plans and Implementation Results of CSR

The ESG office collaborates with departments or units responsible for each materiality topics to establish management approach and set goals for materiality topics. After the committee confirms the adequacy in written form, the ESG office implements and follow-up on the performance. In addition to SDG4, 7, 13, and 17, we responded to other SDG in different materiality topics.

Goals and management approach for materiality topics

Materiality topic
Materiality
Management strategy
Achievement status in 2020
Goals for 2021
Goals for 2025
Corresponded SDGs
Customer service and partner cocreation
Favorable client relations can increase our competitiveness. Outstanding partnerships can also enhance overall creativity across the entire IoT industry.
View clients as partners. Cocreate products or services with clients and co-operate the market.
Started 19 cocreation projects in places such as Taiwan, China, and Switzerland.
Held 95 global online talks.
品牌價值雙位數成長
Increase global client satisfaction rate by 10%.
SDG 17. Partnership for the goals
Innovative products and technology
Innovative ability is the key to Advantech’s competitiveness. Technology innovation reduces R&D cost and resource wastage while increasing overall performance.
Run various innovation projects across different business groups to promote interdepartmental collaboration technology and emerging business opportunities.
17 products received A+ product nominations.
Completed three cross-business unit R&D technology sharing projects.
Establish EBO (Emerging Business Opportunities) mechanism.
Increase brand value by double digits.
At least 80% of A+/A standard items to reach an annual sales of USD 10M.
Establish at least 3 new business units via EBO.
9. Industry, Innovation, and Infrastructure
Information security management
With the emergence of RaaS (Ransomware-as-a-Service), information security is now a critical risk. This has made effective risk management even more critical to maintaining employee and client privacy.
Strengthen information security management through implementing policies on auditing designated information security units, data preservation, endpoint protection, and network framework adjustment.
Added to materiality in 2020.
Key IT services (ERP, PLM, Mail) to operate normally 99.9% of the time.
Disaster recovery time to be reduced to less than 24 hours.
Supply chain sustainable management
Establish and develop stable and friendly relations with supply chain partners to ensure consistent quality, reduce risk, and fulfill social responsibilities together.
Require suppliers to comply with our Supplier Code of Conduct.
Regularly identify suppliers for high risk on meeting our sustainability standards. We conduct audits them and require any improvements to be made within a reasonable time limit in order to reduce the risk level to medium to low.
Key suppliers: 100% met of Corporate Social Responsibility Commitment; 100% signed an agreement to not to use conflict minerals.
Key suppliers: 100% to meet our Supplier Code of Conduct and agree to not use conflict minerals. Zero environmental pollution, incidents of human rights violations, or major occupational hazards.
Suppliers with high sustainable risks: 100% to obtain ISO 14001 certification.
Key suppliers: 100% to complete ESG risk assessment.
Suppliers with high sustainable risks: flaw improvement rate to reach 70% or above.
17. Partnership for the goals
Sustainable intelligent solutions
Our software, hardware, and integrated solutions are designed to enhance competitiveness while promoting sustainability.
Include the philosophy of sustainability in our strategy blueprint for business groups to develop new products. Establish quantifiable goals and continue to develop solutions aimed at greater sustainability.
15.79% of revenue came from products for sustainable purposes.
18% of revenue to come from products for sustainable purposes.
25% of revenue to come from products for sustainable purposes.
7. Affordable and clean energy 13. Climate action
Eco design and product responsibility
Launching more products that are environmentally friendly will enhance our competitiveness while reducing losses from failure to meet clients’ environmental standards.
In response to the company’s ESG initiative, we have incorporated the Green Mark into our innovative design procedures.
Added to materiality in 2020.
Green design: 10% of standard products of new projects must meet the four major aspects set out in our Eco Design Guidelines.
Green design: 80% of standard products of new projects must meet the four major aspects set out in our Eco Design Guidelines.
9. Industry, Innovation, and Infrastructure 12. Responsible consumption and production
Climate change strategies and energy management
Climate change is a critical topic for humans. Our global operations are exposed to potential risks that may result from climate change. We strive to proactively fulfill our responsibility to protect the global environment and create a sustainable green industry.
Meet all environmental regulations. Achieve zero pollution and zero violations.
Identify potential risks resulting from climate change and respond accordingly.
Establish short-, mid-, and long-term goals for energy-saving and carbon reduction. Develop actual practices and promote them.
Ranked in the B List in the 2020 Climate Disclosure Project climate change questionnaire evaluation.
implemented an environmental management system for regular inspection of performance; no problems pertaining to environmental protection required amendment in 2020.
Overall GHG emission density per unit revenue was reduced by 2.1% compared to 2019.
Introduce a building energy management system (BEMS) at Linkou and Kunshan
Kunshan plant to continue to obtain green factory certification.
Linkou solar panel power generation to account for 4.5% of total electricity use.
The proportion of green power use in China and Taiwan to reach 20%.
Linkou solar panel power generation to account for 6.5% of total electricity use.
7. Affordable and clean energy 13. Climate action
Talent cultivation and retention
Due our industry’s high demand for low volume/high variety products that deliver on innovation and flexibility, we require both domain-specific and cross-domain talents. Talent attraction, cultivation, and retainment are thus paramount for our operations.
Right People on Bus recruitment mechanism: First attract outstanding talents and then find suitable positions for them.
Offer interdisciplinary, cross-national, and diverse job opportunities as well as comprehensive learning courses to cultivate outstanding talents.
In 2020, the Right People on Bus channel accounted for approximately 11.6% of all new employees in Taiwan.
In 2020, we identified 49 talents with high potential. The development plan achieve rate was 93.6%, and the retention rate was 98%.
Establish the HCM (Human Capital Management) digital talent database.
At least 25% of AVP levels or above have been through rotation process.
Use HCM to realize the visibility of global talents.
15% of global new employees to be recruited through the Right People On Bus channel
8. Decent work and economic growth
WISE-PaaS IoT education
Reducing the gap between industry and academia and cultivating outstanding and innovative talents are critical to our sustainable operation in the future.
Use various industry–academia projects, internships, and accelerator projects to cultivate IoT talents and start-ups.
14 universities worldwide participated in InnoWorks
17 students participated in summer internships, which yielded five innovative proposals.
We cooperated in six research projects and sponsored five IoT industry–academia elite PhDs and four industry–academia master’s.
InnoWorks: 20 schools worldwide to participate. Two A+ projects to be yielded from Taiwan.
Internship: 20–30 students to participate in internships.
IoT Lab: Three large-scale industry–research projects to be conducted.
AIoT Academy: Complete 10 A+ projects. Assist over 500 students in obtaining WISE-PaaS certification.
Over 50 schools worldwide to cooperate with us in industry–academia projects.
4. Quality education
Community care
The Lita concept is a part of our corporate DNA. For this reason, community care is a materiality for the company.
With the two major themes of arts and culture as well as a sustainable education platform, we invite employees and their families to participate in the activities and to coenrich the community.
We input over NT$10 million and sponsored 23 NGOs or social enterprises.
Expand children sustainable education on the education platform: ACT Dreamer (from two schools to eight schools.)
Expand community care projects from Taiwan, China, and the United States to more than 10 locations where Advantech branches are located.
4. Quality education 11. Sustainable cities and communities

Boundary and Verification of Advantech CSR Report

Advantech Co., Ltd. issued its 2020 CSR Report with the major aims of transparently and openly presenting to its stakeholders and society the company’s various CSR-related measures, results, management directions, and strategies, and expanding to environmental and social concerns. The report was published in 2021. The major task of the present edition is to adjust the report according to Global Reporting Initiative (GRI) Standards and expand how the company communicates and negotiates with various stakeholders. The boundary of the Advantech CSR Report consists of Advantech Taiwan (Ruiguang-Headquarters, Sunny, Donghu, and Linkou), and Advantech Kunshan, China, as critical operation bases. This report also discloses the performance data of Advantech’s Hsinchu, Taichung, and Kaohsiung offices.



Advantech CSR report has been verified by an independent third party, SGS Taiwan Ltd, to ensure that it meets the requirements for AA1000AS (Type 2 - High Assurance). The verification statement is provided in the appendix of the report.