TEEMA White Paper on Blueprint of Sustainability Strategy Execution Summary

Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) has grown together with Taiwan's electrical and electronic industries. In the past, TEEMA worked with governmental departments and private organizations to jointly promote pollution reduction and waste reduction. In the early days, we focused on getting domestic manufacturers on board with the environmental protection laws and regulations. In 2005 a series of EU directives made a huge impact on the industry. TEEMA also works together with external units and organizations in order to solve the increasingly harsh environment and sustainability regulations that are facing Taiwan's industries. In recent years,with the signing of the Paris Agreement, the urgency for carbon reduction has introduced new challenges to Taiwan's electrical and electronic industries. In addition, the United Nations Sustainable Development Goal initiative has made the issue of sustainability becomes risks and opportunities for the electrical and electronic industries. During this process,TEEMA will continue to work hand in hand with out members.
In addition to assisting member manufacturers to understand new sustainable development trends, TEEMA will also assist member manufacturers to minimize risks, face challenges,and continue to connect with the global community through electronical and electronic products and services, stepping towards a sustainable Taiwan. The electrical and electronic industry is facing a wide range of sustainable trends, starting from the early WEEE (Waste Electrical and Electronic Equipment), RoHS (The Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment) and EuP (Eco-design Requirement for Energy Using Products), the EU's three major environmental protection directives, the electrical and electronic industry has begun to receive attention from the international community,and even become trade barriers between countries and the EU.
Until in recent years, the conflict resource and the Responsible Business Alliance (RBA, formerly known as Electronic Industry Citizenship Coalition, EICC) promoted by various countries have caused the sustainability trends of electronics industry to shift from government mandatory environmental regulations to customer requirements, a broader code of conduct for Responsible Business Alliances.
As mankind emits large amount of greenhouse gases leading to global climate changes, extreme weather has become more and more severe. In recent years, extreme climates such as high temperature, forest fires, droughts,and super storms have severely impacted the economic development of various countries. According to the analysis by National Aeronautics and Space Administration (NASA) and the National Oceanic and Atmospheric Administration (NOAA),the past decade was obviously the hottest decade in history,and since the 1960s. The average temperature has only risen and not fallen for every 10 years. What is more serious in 2020 is the flooding of southern China, the worst rainstorm in 50 years, causing serious floods and landslides. In early July, the floods in Kyushu, Japan, Kumamoto and Kagoshima Prefectures suffered biggest rainstorm for nearly a hundred years, causing serious property losses. Floods and droughts in East Africa have become frequent. Desert locusts invaded and local food security problems have only made the situation worse. In addition to the extreme weather disasters, the small town of Verkhoyansk (Verkhoyansk), known as the coldest place in the world, measured a high temperature of 38° C. The Norwegian Meteorological Institute reported that the Svalbard archipelago in the Arctic Circle also set a record high temperature.
According to scientific research, the North Pole is warming faster than the rest of the world, twice as fast as other places on the surface. This kind of high temperature phenomenon has led to serious forest fires in Southern California in July and August 2020, resulting in massive losses of wildlife, human life and property.
In 2020, the thing that took the world by surprise the most was the wide-spread of COVID-19, which has caused drastic changes in our global society. A number of studies have pointed out that due to climate change and the mass destruction of ecological habitats, the opportunities for humans to come in contact with wild animals have increased,leading to the occurrence of emerging infectious diseases.
Apart from this, COVID-19 has more serious impact on patients with lung damage. These are all reasons for human beings to rethink the harmonious coexistence between humans and the environment, at the same time, reducing air pollution and protecting human health.
In addition to the black swan factors such as COVID-19,the biggest and the most important legal challenges faced by all industries across the world currently are the Paris Agreement signed in 2015 and the United Nations Sustainable Development Goals (UN SDGS). Especially, after the Paris Agreement of Climate Change many standards and guidelines of climate change have been further strengthened, such as Task Force on Climate-related Financial Disclosures (TCFD) and Science Based Targets (SBT). The United Nations Sustainable Development Goal is a more comprehensive review of the entire human race. It outlined the common vision we wish to achieve in the 15 years between 2016 to 2030. At present, the electrical and electronic industry is facing many sustainability issues and challenges, the following issues are undoubtedly the most critical:
Climate Change: With the signing and implementation of the Paris Agreement, international initiatives on climate change have suddenly increased with the financial industry playing a special role. In order to achieve the goals set by the Paris Agreement, the international community has published the guidelines of Task Force on Climate-related Financial Disclosures (TCFD), founded the Science-based Carbon Reduction Alliance and so on. These issues will continue in the days ahead and become important trends affecting the industry's response to climate change.
Circular Economy: With resource shortages leading to possible price fluctuations of raw materials, the European Union has begun to promote the implementation of circular economy. Taiwan has also begun to promote this issue in 2016, incorporating circular economy with the previous waste management policy such as the 3R ( Reduction Reuse,Recycling), allowing Taiwan industries to break away from the traditional linear growth economic model.
The Responsible Business Alliance Code of Conduct (RBA) and supply chain management: establish a set of regulations to ensure the safety of work environment, protect the dignity of workers, ensure business operations are environmentally friendly and comply with ethical conduct for the electronic industry or industries which deal largely with electronics and their supply chain. RBA has announced the seventh version of the Code of Conduct, and the latest version 7.0 has begun implementation on January 1, 2021.
United Nations Sustainable Development Goals: in 2015 the United Nations outlined the 17 primary goals and 169 secondary goals for sustainable development that mankind hopes to achieve in the next 15 years (2016-2030). This issue will continue to lead global enterprises towards sustainability in the coming decades.
The Positioning of the Board of Directors: It can be observed from international trends that the importance of the board of directors for the sustainable development of enterprises is increasing day by day. In TCFD, it hopes that the board of directors can improve climate governance. Taiwan began to promote corporate governance 3.0 and corporate governance evaluation in 2020, hoping to incorporate the concept of corporate sustainability into the highest governance body of the entire company in order to promote Corporate Social Responsibility (CSR) and sustainable culture as the goal of the company.
On March 19, 2020, in the "4th Joint Meeting of the 25th Board of Directors of TEEMA", the proposal to add "Sustainability" to TEEMA's values was approved and it is placed first our set of values. In the face of environmental protection and sustainable development, under the values of "Sustainability, Professional, Service, Innovation", TEEMA is determined to promote the long-term sustainable development of the association in the future. This white paper is the sustainable strategy roadmap of TEEMA in response to the Paris Agreement and the United Nations Sustainable Development Goals.
TEEMA's core strategy is to actively bolster the responsibilities of existing communication platform, and at the same time to include broader the information of multiple stakeholders and the three aspects of Environmental, Social and Corporate Governance (ESG). Through the linkage of TEEMA,members can leverage our strengths to link with the world,society and government, encouraging members to better understand sustainability trends and how to overcome the challenges of sustainable development.
Based on international trends and national development goals, TEEMA plans to focus on issues of concern, including:Corporate Governance, Climate Change, Circular Economy,Labor and Human Rights, and Supply Chain Management;build a sustainability information platform and strengthen stakeholder negotiation to draw attention to issues of concern.
Corporate Governance: Continue to pay attention to the Corporate Governance 3.0 policy development of Financial Supervisory Commission and, at the same time, assist members to understand the key points of the plan so that members can strengthen their own governance capabilities.
Climate Change: Based on mitigation and adjustment,implement Task Force on Climate-related Financial Disclosures (TCFD) to strengthen members' climate governance, links members' products and services, and improves members' performance in energy conservation and carbon reduction; at the same time, promote members' awareness and perception of the risks of climate change, actively adjust the physical risks brought by climate change, and enhance the climate resilience of the industry and members.
Circular Economy: Actively engage with the government's circular economy policy to promote members' awareness of resource recycling, strengthen the recycling technology of electrical and electronic by-products, and provide innovative knowledge of circular economy business models to facilitate member industrial transformation.
Labor and Human Rights: Strengthen safety and health regulations within member companies, and provide employees with a safe working environment. In addition,TEEMA has developed a coherent declaration of human rights to demonstrate the pursuit of common values in Taiwan's electrical and electronic industry. At the same time provide multiple channels for member talent cultivation in order to improve the quality of human capital and build the solid foundation for sustainable industrial development.
Supply Chain Management: Cooperate with external units to jointly develop supply chain management codes suitable for Taiwan's electrical and electronic SMEs, integrate the relevant indicators of the Responsible Business Alliance Code of Conduct (RBA), and promote the sustainable development of SMEs, through the joint effort of leading enterprises such as Taiwan's major companies.
Sustainability Information Platform and Stakeholder Negotiation: deepen TEEMA's existing communication channels, incorporates diverse and wide range of stakeholders.
At the same time, collect domestic and global sustainable development trend information and provide information for members to gain new knowledge so that members can obtain the necessary assistance to overcome challenges.
This white paper is the first "Blueprint of Sustainability Strategy" composed after inviting Sustainability, Innovation and Assessment Center of the National Taipei University of Technology, to assist in the discussion of TEEMA's "sustainability strategy" . The proposed structure is completed after discussion by the relevant committees' chairmen,directors, consultants, and supervisors.
TEEMA's sustainable development strategy will be adjusted and improved year by year in accordance with international trends and government policies. We will also actively communicate with members to understand the actual needs and challenges, and develop cooperation with external units, promoting the electrical and electronic industry to be able to integrate with the world, to develop together, and to step towards sustainability.