Looking back on 2022, restructuring of supply chains triggered by international geopolitical crises, post-pandemic recalibrations of industrial conditions, economic problems caused by high inflation and rising interest rates, as well as impacts from climate change, have drastically changed external environments, drawing attention to sustainability issues. Faced with these drastic changes to external environments, the Ennostar Group formulated market insights, continued to seek out opportunities, and established advance strategies to meet market needs, while also strengthening our corporate resilience to ensure that Ennostar can enjoy sustainable growth and operations. 

2022 marks the first year of ESG implementations at the Ennostar Group. ESG Corporate Sustainability Committee under the Board so that the Board can directly supervise Group ESG targets, strategies, and implementations, thereby demonstrating our emphasis and commitment to ESG. Additionally, we have adopted the dual tracks of “vertical strengthening” and “horizontal integration” to accelerate ESG progress. In terms of vertical strengthening, we have set up ESG teams that coordinate ESG operations for each company and established ESG committees at our three main subsidiaries (EPISTAR, Lextar, and Unikorn) which are chaired by subsidiary presidents and are responsible for managing ESG advancement and progress at each subsidiary. In response to important cross-company ESG issues and task requirements, we have formed Eight ESG Task Forces that coordinate affairs for different ESG aspects, enabling us to take a comprehensive view, achieve horizontal integrations, utilize Group advantages, and maximize sustainability synergies.

 

Proactively Implement Climate Actions to Realize Low-Carbon Strategies

Extreme climate conditions have made climate change a pertinent issue for both global economic and social environments, increasing the urgency of our climate actions. To strengthen climate resilience, we built upon our core capabilities to develop enhanced energy-saving products which helped our end clients reduce 546 million kWh in energy usage (equivalent to 278,000 metric tons CO2e) in 2022. In terms of external participation, Ennostar Group completed ISO 14064-1 greenhouse gas inventories and third-party external verifications in 2022, became a Task Force on Climate-Related Financial Disclosures (TCFD) supporter, joined the Taiwan Climate Partnership, and actively participates in domestic and foreign climate actions.

In response to the government’s 2050 net zero emission pathway, the Ennostar Group initiated use of green electricity and launched a sustainable energy transformation plan which focuses on the two aspects of increasing green energies and reducing energy usage. We increase green energies by establishing green energy facilities and purchasing green energies, including through gradual installation of factory rooftop solar photovoltaic systems and composite purchases of renewable energies such as solar power, land-based wind power, and offshore wind power. We reduce energy usage and achieve energy conservation through four aspects: lighting management, air-conditioning management, equipment and system improvements, and process efficiency enhancements. We plan to realize our RE100 goal in nonproduction sites by 2030, and our RE100 goal across the entire Group by 2050. We also collaborated with First Bank on a syndicated loan which incorporates sustainability concepts and ESG sustainability indicators into loan conditions, thereby linking sustainability and technological operations to accelerate implementations of low-carbon strategies.

 

Giving Back to Society to Create Mutual Societal Benefits

“Creating mutual benefits for people and society” has always been an important goal for the Ennostar Group. In 2022, Ennostar carried out structural and performance-based salary adjustments to enhance overall Group remuneration competitiveness. This year, we also established a share ownership trust for all employees, enabling them to become shareholders and enjoy the results of our operational performance. This also encouraged our colleagues to save money for their post-retirement lives, generating additional value for themselves and Ennostar, and creating mutual benefits. Employees who join the shareholding program can contribute different amounts based on their positions, and we match 100% of contributions, allowing our employees to retain flexibility in contributions.

“Giving back to society” is one of our core beliefs. Over the years, our subsidiaries have participated in various charity activities through in-kind donations and cash donations. In 2022, our total investments in social participation exceeded NT$ 2.6 million. Most importantly, we encourage our employees to serve as volunteers and participate in various charity activities from care for stray animals, local beach clean-ups, education of rural schoolchildren, and care for the elderly to implement social participation from different aspects, converting their concerns into practical actions and generating positive social influence.

 

Strengthen the Value of High-Tech Applications and Move Towards Excellence in Sustainability

Becoming the “Best compound semiconductor investment platform” is a consistent and clear goal for Ennostar. In order to strengthen Group advantages in highly competitive international markets and grasp market opportunities in promising next-generation applications, Ennostar continues to invest heavily in R&D resources; work with our partners on new-generation advanced display, automotive, sensor, and lighting technologies and high-value applications; and extend our core capabilities in epitaxial and manufacturing procedures for application in new-generation compound semiconductors so we can become the “best compound semiconductor investment platform.” We still have a lot to learn on our path to sustainability. We continue to devote ourselves to the three major aspects of environmental protection, social participation, and corporate governance, cherish our land, actively generate positive influence for society, and fulfill our corporate social responsibilities. We hope to create a unique Ennostar sustainability formula as we continue to make our way down the long and arduous path of excellence in sustainability.