table of contents · 2016-10-19 · table of contents 3. environmental protection environmental...

Table of contents

3. Environmental protectionEnvironmental friendliness is more than a slogan, but an immediate action

27

Forest protection through e-correspondence system 29

Efficient energy use, it matters 32

Effective GHG control, emission intensity reduced by 13.41%

33

Testing and prevention of air pollution 35

Explore all energy-saving solutions; replace power-hungry equipment

36

Every drop of water counts 39

Use of resources and waste treatment 41

Absence of toxicity in all components/materials used for Primax products

42

Strict compliance with IECQ QC080000 standards for hazardous substance management

43

Primax's green production leads the world by far 45

1. Message from the Chairman

Message from the Chairman 3

Primax Electronics 2015 CSR Report certified by SGS for GRI G4 and AA1000 standards

4

Identification of material aspects and boundaries; sustainable actions commenced from Taiwan to China

5

Stakeholder engagement; we listen and respond 9

2. About the reportPrimax Electronics dedicated to being world's best supplier of consumer electronics

15

Exceptional business performance; simultaneous growth in revenues and profits

17

Well-experienced board, highly diversified talents 19

Ethics and integrity, humanity's most noble values 23

Table of contents

4. Supplier ManagementSupplier Management selection and evaluation of new suppliers

49

Supplier ManagementPrimax GP Portal® - seamless connection of the global green supply chain

50

Supplier management CSR guidance for suppliers 52

5. Employee careMore than 16,000 top talents located throughout the world 55

Employee care driven by humanity 58

Protection of employees' human rights and creation of an equal-gender environment

59

Efficient communication with employees 60

Career planning and promotion system, inspiring employees' potentials for whole new career opportunities

62

Employee training robust training system that helps develop self-learning habits

65

Work-life balance 70

Clubs and recreational activitiesExciting life at Primax 71

Safeguard to employees' health and safety 77

Care and support for the ultimate peace of mind 81

6. Social Interest

Commitment to the society 85

7. Appendices

Appendix A: SGS Certification 91

Appendix B: GRI G4 Index 93

Message from the Chairman

011 Primax Electronics 2015 CSR Report


Primax Electronics will be publishing its 2nd CSR report this year. For the first time ever, this report will be prepared based on GRI G4 and certified by SGS using AA1000 Type 1 High Assurance standards as a demonstration of our commitment to sustainable operations. Primax's long-term dedication to business activities has yielded favorable results. While we strive for commercial success, our business departments and welfare committee are exploring different ways to give back to the society and protect the environment. From 2015 onwards, we hope to fulfill our corporate social responsibilities in a more systematic manner by making changes to our existing organization and policies, and thereby allow Primax to accomplish its vision towards sustainability. Our first step was to establish "Primax Electronics Corporate Social Responsibility Code of Conduct" and create a specialized CSR Office under the authority of the board of directors to oversee the Company's CSR efforts. The CSR Office was then assigned to report, execute, and manage the Company's sustainability strategies and plans, while making sure that they are properly implemented at local as well as foreign operations. Primax has long devoted attention to economic, environmental and social topic. Its internal departments already have policies and practices established to fulfill their duties. However, addition of the CSR Office enables more comprehensive view of how the Company is doing as well as more thorough coordination of CSR efforts throughout the organization. In the future, Primax will be able to respond more closely to changes around the world and address stakeholders' concerns in a more timely manner. The CSR Office has outlined three main principles to guide its actions during the early stage of its operation: (1) Benchmark learning; (2) Employee awareness; and (3) Progressive changes. With these principles in mind, we shall progressively improve our existing policies and practices and develop systematic risk management procedures for economic, social and environmental aspects of our operation, while aiming to develop Primax's unique sustainability culture over the next three years. The following is an explanation of the actions taken by Primax.

Corporate governance and business integrityWe believe corporate governance to be the foundation of our CSR efforts. Only when the executive management is actively involved in the supervision and authorization of CSR activities may our sustainability projects achieve the fullest potential. For this reason, corporate governance will be the priority of our CSR plans in the short term, which we aim to improve by adopting local and foreign assessment standards, taking count of the progresses we make, enhancing board functionality, and setting goal to become the exemplar among local businesses.

Employees' wellnessIn addition to our existing "Healthy Workplace" initiatives, we have also introduced "Safe Workplace" and "Friendly Workplace" as two higher level goals for bringing attention and sense of belonging to our employees. We are confident that these material benefits will attract more talents into Primax and bring stability to the workforce, and provide positive support to the Company's strategic plans over the long run.

Environmental friendlinessAs a leading manufacturer of consumer electronics and accessories, we consider ourselves capable of leading the electronic industry in the elimination of toxic substances from electronic products. We have already eliminated mercury and arsenic from most of our products, and we are taking steps toward the use of lead-free materials. Furthermore, we have made our commitment to achieving more efficient use of energy by setting quantifiable goals to "reduce energy intensity and minimize discharge of hazardous waste."

In the future, we will continue to publish this report on an annual basis as a means of disclosing our operational results other than financial performance. Meanwhile, we shall accept stakeholders' feedbacks, measure ourselves against external assessments and benchmarks, and take progressive steps toward realizing our corporate vision.

Message from the Chairman

Primax Electronics Chairman Raymond Liang

4

Overview of the reportThis is the 2nd corporate social responsibility (CSR) report of Primax Electronics. We will continue to publish this report in the future as a means of disclosing non-financial performance to the outside world, a show the public how we have taken actions toward achieving our corporate vision. This is the first report to be certified by SGS Taiwan Ltd. for GRI G4 and AA1000 standards. The certificate was received personally by the Senior Assistant General Manager of the Company's CSR Office, which showed the level of attention the executive management has devoted to CSR affairs.

Reporting periodJanuary 1 to December 31, 2015

Period and date of the previous reportThe previous report, published June 1, 2015, covered the period from January 1 to December 31, 2014.

Scope of report and aspect boundariesEconomic data of this report was sourced from 2015 consolidated financial statements. Consolidated revenues shown in this report represent total operating revenues generated by Primax Electronics Ltd. and affiliated group members. Disclosures in the environmental and social categories pertained only to Taipei headquarter and the 4 plants in Dongguan.

Preparation guidelinesThis report has been prepared based on Global Reporting Initiative, Sustainability Reporting Guidelines Version 4.0 (GRI G4). For this report, the Company has chosen the "In Accordance with Core Option" and followed GRI G4 General Standard Disclosures and Specific Standard Disclosures to address this year's sustainability topic and information disclosure. A complete GRI G4 comparison chart has been provided as reference to the relevant chapters.

Certification standards and resultsThe executive management had reached the conclusion to obtain external certification as a means of raising credibility of this report. Primax engaged SGS as the third-party certifier, which adopted the 2008 AA1000 Assurance Standard developed by Account Ability (a world-renowned NGO) and used Type 1 and High Assurance as the two assurance standards for verifying various information disclosed in this report. Please refer to the appendices for more details on the SGS assurance statement.

External assuranceAll financial data disclosed in this report was taken from consolidated financial statements audited by KPMG using International Financial Reporting Standards (IFRS). In addition, Primax has also obtained third-party certification for compliance with OHSAS 18001 - Occupational Health and Safety Management System, ISO 14001 - Environmental Management System, IECQ QC080000 - Hazardous Substance Process Management (HSPM), and ISO 14064-1 - Greenhouse Gas Inventory.

ContactPlease contact us for any queries or suggestions you may have with regards to the content of this report.Primax Electronics Ltd.Address: No. 669 Ruiguang Road, Neihu District, Taipei CityContact: CSR Office Senior Assistant General Manager Honda LeeTEL: 02-27981020Email: [email protected]

Primax Electronics 2015 CSR Report

Certified by SGS for GRI G4 and AA1000 standards


6 Japan

America8272

642Taiwan

1,286Chongqing

13,943Dongguan

Beijing

Kunshan53

Guangzhou 74

Employees at global operations

The consolidated financial statements cover the Company's operational headquarter and plants and R&D centers located throughout the world. During the reporting period, most of the Company's products were manufactured by Liuwu Plant located at Dongguan City, China. Other products were manufactured by factories located at Kunshan City and Chongqing City, China. In addition, the Company has 3 R&D centers located at Beijing, Guangdong and Taiwan. Meanwhile, logistics centers and distribution networks are available in Europe (Czech Republic), USA and Japan. The global headquarter of Primax Electronics is located at Neihu District, Taipei City.

Identification of material aspects and boundaries

Sustainable actions commenced from Taiwan to China

▼ Company overview

Company name: Primax Electronics Ltd. Year of establishment: 2006 (initially founded in 1984) Headquarter: Taipei, Taiwan 2015 revenues: NT$65,589,293,000 (global, consolidated)

2015 employee size: 16,284

Stock ID: 4915

6

6 Japan

America8272

642Taiwan

1,286Chongqing

13,943Dongguan

Beijing

Kunshan53

Guangzhou 74

Procedures for defining report contents and aspect boundariesWe gather sustainability reference from numerous sources to guide our CSR practices. We have also determined our material aspects by adopting a 4-step process: Identification, Prioritization, Validation, and Review. In Step 1 - Identification, the CSR Office held a series of internal meetings and applied historical experience, GRI G4 Aspects, TWSE's assessment criteria, AA1000 standards, ISO 26000 guidelines, Bloomberg ESG Survey... to compile a list of topic that deserved to be addressed in this report (i.e. Relevant Topics).

In Step 2, we adopted the three principles of GRI G4 to rank the Relevant Topics by their significance. Principle 1: Stakeholder Inclusiveness. The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations and interests. Principle 2: Materiality. The organization should verify that the topics it has chosen do reflect the organization’s significant economic, environmental and social impacts. Principle 3: Sustainability Context. The report should disclose the organization’s improvements and mitigation measures taken to address local or global economic, environmental and social trends. To conform with GRI G4 guidelines, the Relevant Topics identified from step 1 shall be referred to as aspects from this point onwards. In the meantime, we have also issued questionnaires to stakeholders to collect information on topic they were most concerned with.

In Step 3 - Validation, we assessed the various aspects we have identified based on the GRI G4 principle of "Completeness." The principle of Completeness addresses: 1. The Scope of this report, covering all aspects from economic performance, materials, occupational health and safety to training; 2. Aspect Boundaries of this report, which defines impact boundary for every aspect; and 3. The completeness of information gathered during the reporting period. More importantly, all prioritized aspects in this report

have been approved by the executive decision maker. In step 4 (Review), the final stage in the identification of material aspects and boundaries, the Company will begin gathering stakeholders' feedbacks after the report has been published, so as to prepare for the next reporting cycle. Opinions provided by stakeholders will prove useful in the Identification step of the next report.

Material aspects and boundaries of disclosureWe have identified 24 material aspects for this report, including 1 economic aspect, 8 environmental aspects, and 15 social aspects. Economic Performance was the only material aspect identified under the economic category. In the environmental category, the material aspects identified included: Materials, Energy, Emissions, Waste water and Waste, Products and Services, Compliance, Overall Expenditure and Investment, and Supplier Environmental Assessment. As for the social category, the material aspects identified included: Employment, Labor/Management Relations, Occupational Health and Safety, Training and Education, Diversity and Equal Opportunity, Equal Remuneration for Women and Men, Labor Practices Grievance Mechanisms, Child Labor, Forced or Compulsory Labor, Local Communities, Anti-corruption, Compliance (social), Customer Health and Safety, Customer Privacy, and Compliance (products and services).

For every material aspect identified, we have defined clear impact boundaries within and outside the organization. Internally, impact boundaries of identified aspects have been broadened to cover Taipei headquarter as well as the four plants located in Dongguan, China (namely Liuwu Plant, Liuwu 2nd Plant, Mingzhu Plant and Xinan Plant). Externally, the boundaries of identified aspects cover suppliers, customers, and NGOs/local communities.


▼ Order of Material Aspects and Disclosure Boundary

Within the organization Outside of the organization

Category Aspect

Taiwan China

Suppliers CustomersNGOs/

local com-munitiesTaipei Headquarter Liuwu Plant Liuwu 2nd

PlantMingzhu

Plant Xinan Plant

Economic Economic Performance ● ● ● ● ●

Environ-mental

Materials ● ● ● ● ●

Energy ● ● ● ● ●

Emissions ● ● ● ● ○

Waste water and Waste ● ● ● ● ○

Products and Services ● ● ● ● ● ○ ○

Overall (expenditure and investment) ● ● ● ● ●

Compliance (environment) ● ● ● ● ●

Supplier Environmental Assessment ● ●

Social

Employment ● ● ● ● ●

Labor/Management Relations ● ● ● ● ●

Occupational Health and Safety ● ● ● ● ● ○

Training and Education ● ● ● ● ●

Diversity and Equal Oppor-tunity ● ● ● ● ●

Equal Remuneration for Women and Men ● ● ● ● ●

Labor Practices Grievance Mechanisms ● ● ● ● ●

Child Labor ● ● ● ● ● ○ ○

Forced or Compulsory Labor ● ● ● ● ● ○ ○

Local Communities ● ● ● ● ● ●

Anti-corruption ● ● ● ● ● ○ ○

Compliance (social) ● ● ● ● ● ● ●

Customer Privacy ● ● ● ● ● ●

Customer Health and Safety ● ● ● ● ● ●

Compliance (product respon-sibility) ● ● ● ● ● ●

Note 1: ● A solid circle denotes a material issue that has been disclosed in this report.Note 2: ○ A hollow circle denotes a material issue that will be disclosed in the next 2-3 years.

8

Restatement

Compared to previous year's report, most information has been restated in this report. The restatement was made after October 2015, when a specialized unit named CSR Office was created directly under the Chairman to oversee corporate social responsibility matters. For the purpose of this restatement, the CSR Office had gathered extensive references and taken into consideration a great volume of sustainability indicators used in foreign countries. We then established a set of "Primax Electronics Corporate Social Responsibility Code of Conduct" and prepared the report from scratch, building up Relevant Topics and material aspects along the way. This process was reported to the Chairman on a regular basis. Because of the extra steps taken during preparation, this year's report is more stringent and accurate in every way, and devotes greater focus on the Company's engagement with stakeholders to fully address topic of their concern. The aspect Boundaries have also changed significantly from the previous report.

Illustration of Material Aspects

Level of stakeholders' concern

Extent of internal impact

Ethics andIntegrity

Customerrelations

Businessperformance

Compliance

Corporategovernance

Environmentalstrategy

Occupationalhealth and

safety

Energymanagement

Compensationand benefits

Managementof waste and

effluents

Anti-corruption

Social engagement

Employee communication

Supplier management

Green design

Energyconservation

& carbonreduction

Employee training

Stakeholder grouping, identification and selection

We have devised robust methods to identify the stakeholders whom we engage with. First, members of the CSR Office engaged themselves in a series of discussions to brainstorm possible stakeholders including employees, investors, government agencies, customers, suppliers, non-government organizations, media, local communities, and competitors. The CSR Office then adopted the 2015 AA1000 Stakeholder Engagement Standard (AA1000 SES 2015) established by non-government organization - AccountAbility and followed its 5 principles: responsibility, influence, tension, dependency and diverse perspective to rate all stakeholders it had identified. At the end of the process, the CSR Office was able to determine the 6 stakeholders that were of utmost priority to the Company. The 6 categories of stakeholders included in this report were: shareholders, employees, customers, suppliers, government agencies, and NGOs/local communities.

Method, frequency and procedures of stakeholder engagement

For each of the 6 stakeholder categories identified, we engaged them using different approaches including unilateral, bilateral, one-to-many and many-to-one. See the Stakeholder Engagement Table for details on the method, frequency and procedures used. Apart from the engagement approaches listed in the table, the Company also issued questionnaires to survey stakeholders' opinions regarding the Company's CSR vision, strategies, topic of concern, projects, and relevant topics. These opinions provided the basis of disclosure with regards to the major topic of concern, and served as valuable feedback for the Company's continual improvement towards sustainability. A total of 1,062 questionnaires were recovered in the reporting period. Results of this questionnaire were used to determine the materiality of various topic of concern. This survey had been organized specifically for the preparation of this report.

Stakeholder engagementWe listen and respond


Rank and outline the boundaries for material issues· Prioritize every issue based on analysis

· CSR Team discusses with the executive management to determine the list of material issues to disclose and the internal/external boundaries of disclosure

Analyze material issues· CSR Team analyzes the impacts of each issue based on previous experience

· Use questionnaires, interviews, meetings and interactions to learn about the level of each stakeholder's concern towards each issue

A l t i l i

Identify stakeholders· Brainstorming by CSR Team· Follow the 5 principles of AA1000 SES 2015· Rank and select 6 stakeholder categories

Gather sustainability issues· Past operating experience· GRI G4 · ISO 26000· Bloomberg


10


Stakeholders Means of communication Frequency of communication Records

Employees

Labor-management meetings Once a quarter Labor-management meeting minutes

Employee performance interview 3 times a year Employee performance evaluation worksheet

Welfare committee meetings Once a month Welfare committee meeting minutes

Satisfaction surveys Once a year Satisfaction survey questionnaire

Internal communication channels: E-mail, posters, elevator bulletin E-mail, posters, photographs

Non-profit organi-zations

Phone interview Phone interview records

Face-to-face interview Interview records

E-mail E-mail

Investors

CSR mailbox: [email protected] Once a year Shareholder meeting registry and minutes

(2015/6/29)

Annual general meetings Once a quarterInformation published in investor seminars, available from Market Observation Post System (MOPS) (2015/3/24, 5/13, 8/14, and 11/13)

Quarterly performance seminar and phone conference: Once a month Monthly revenues and news releases, available

from MOPS and company website

Monthly revenue announcements 4 times a month E-mail, on-site visit, and phone interview

Domestic interview sessions 4 times a year Information published in investor seminars, available from MOPS

Customers

Overseas investor forums Once a year Customers' audit records

GP, CSR, EICC, and QPA/QSA audits Once a year Customers' specifications

Customers' GP/environmental protection requirements Once a year Customers' response records

Customer satisfaction survey Once a year Meeting records

Customers' supplier conferences Case-by-case basis RFQ

12

Stakeholders Means of communication Frequency of communication Records

Suppliers

Product RFQ Once per company QCDS record/declaration

New AVL assessment/declaration Irregular E-supply/GP Portal®/correspondence

Primax's and customers' environ-mental protection requirements Once a year Supplier audit records

Annual audit Irregular Training materials

Supplier training (GHG/CFP/GP…) Once a year Meeting records

Government agencies

Supplier conferences Correspondence

Exchange of correspondence

MOPS

Responding to stakeholders' concerns

Based on the questionnaires recovered, we were able to apply weight and determine topic that were of most concern to stakeholders. These findings were then matched to GRI G4 and presented in the form of material aspects. For details on how we responded to each of the Relevant Topics and the list of stakeholders identified for each topic, please refer to Chapter "Identification of material aspects and boundaries" and Table "Order of Material Aspects and Disclosure Boundary." Below are the standard procedures we took to respond to stakeholders:

1. Members of the CSR Office analyzed the impacts each topic had on the Company.2. Through a series of engagements, the CSR Office developed in-depth understanding to stakeholders' level of concern

with regards to various topics.3. Questionnaires were recovered, weighted and analyzed to rank the materiality of various topic identified.4. The CSR Office reports its findings to the executive management, and outlines material topics and boundaries of

disclosure both internally and externally.5. Once the boundaries of disclosure were determined, the final report was structured specifically to address stakeholders'

concerns.

In addition to the standard procedures mentioned above, a "Stakeholders" section has been created on the website while a mailbox ([email protected]) has been provided exclusively to communicate with stakeholders on any doubts, suggestions or even complaints they may have for Primax Electronics on any issue. This mailbox ensures timely response, communication and sound interaction with stakeholders, which was why no complaint of violation against the environment, society, or customers' privacy was raised during the reporting period.

About the report



Primax ElectronicsDedicated to being world's best supplier of consumer electronicsPrimax Electronics is dedicated to manufacturing world's best consumer electronics. By constantly adopting new technologies and improving man-machine interfaces, we hope to deliver the ultimate user experience and create a better future for mankind. We have incorporated social responsibilities and sustainability into our corporate vision and decisions. We are confident that doing so would create more values for Primax Electronics, the shareholders, the customers, and the society as a whole. We not only provide customers with satisfying services, we do so to generate strong profits for the Company. With respect to technology and product development, Primax Electronics will continue to devote R&D efforts into key technologies such as: touch control, fingerprint recognition, back-lit keyboards, wired/wireless speakers, and high-end camera modules to accommodate new industry trends including cloud computing, mobile devices, digital home and Internet of things. We will also be making improved designs to our man-machine interface and developing high-end products to optimize our existing portfolio while maximize revenue and profit contribution. As for the two core business segments, the computer accessories segment is relatively matured, therefore the Company's competitive advantage lies in its ability to improve quality and reduce cost of existing products, and develop sophisticated technologies for applications such as competitive gaming and high-end touch panels. By delivering better user experience, we shall be able to maintain revenue and profit growth in the computer accessories segment. The non-PC accessory segment consists of a diverse product range from camera modules, fingerprint recognition, multifunctional office machines/printers, to wired/wireless electroacoustic. Our R&D focuses in this regard will include: sophisticated cellphone cameras for broader image applications, high-performance speakers and earphones for increasingly demanding acoustic experience, and fingerprint recognition modules to satisfy consumers' rising security awareness. While we strive to expand market share, we will try to extend our existing products and technologies to different applications and platforms, and aim to achieve growth in terms of shipment and profitability over the medium to long term.

Production-wise, the new phase-5 factory in Dongguan was completed in 2015 and has since begun production activities. The factory will become a fully integrated and fully automated production facility of electroacoustic products, and contribute significantly to the overall production capacity and efficiency. Once the new Chongqing factory is completed, it will be used as the main production site for computer accessories, and eventually begin automated production of man-machine interface products, making it the second largest production site of Primax Group besides Dongguan. The new production site contributes not only in terms of production efficiency and scaled economy, it also diversifies the risk of having production activities concentrated in a single region.

Business philosophy and valueThe Company's highest governing authority has already disclosed on the corporate website its mission, value, vision, strategy and policy towards economic, environmental and social topic. Our vision is to coordinate the efforts of all employees into making Primax the world-class supplier of all products it makes. The corporate website also discloses our business philosophy, which involves: 1. Establishing ourselves as a compassionate, rational, and law-abiding corporate citizen what contributes positively to the local society; 2. Upholding integrity and pursuing sustainability; 3. Constantly making and embracing changes outside of comfort zone; and 4. Maximize rational interests of customers, shareholders, and employees. Below are the Company's business strategies:• Four major product focuses: mobile components,

computer accessories, office machines, and digital home.

• Persistence towards high quality products and services. Achieve quality by doing things right on the first attempt.

• Pursue sustainable growth by maintaining rational balance between risk management, business diversity, profit, and revenues.

• Enhance production management and automation; maintain competitive advantage by constantly improving productivity.

• Continually adopt world-class technologies and innovations.

16

Diverse product range

● Computer accessories ♦ Input devices: mice and keyboards ♦ Back-lit keyboards ♦ Keyboard modules ♦ Bluetooth and wireless controllers and presenters ♦ Mice and keyboards for gamers ♦ Game console accessories ♦ Multi-point touch panels

♦ Digital drawing boards ♦ Smart TV remote controllers ♦ Keyboards and type covers for tablet PCs ♦ Capacitive stylus ♦ Bluetooth stylus ♦ Game controller for tablets and cellphones ♦ Input device for living room

● Non-computer accessories ♦ Mobile device components

■ Full HD slim-type NB camera module ■ 5M pixel camera module for wearable smart devices ■ 8M pixel fixed-focus camera module (front lens) ■ 8M pixel camera module with periscope zoom ■ 13M pixel camera module with closed loop auto

focus

■ 13M pixel camera module with dual zoom ■ 18M pixel camera module for webcam ■ 20M pixel camera module with optical image

stabilizer + auto focus ■ Camera module with phase detection auto focus ■ 26M pixel camera module with optical image

stabilizer + rapid focus

● Office machines ♦ Commercial DADF (Duplexing Automatic Document

Feeder) scanner ♦ Commercial online scanner ♦ High-speed scanning module for all-in-one office

machines

♦ Control panel for high-speed color laser printers ♦ Monochrome/color printer for labels and barcodes ♦ Control panel for high-speed, monochrome/color

laser-based, all-in-one office machines - mobile Internet devices

♦ Control panel for point-of-sale machines

● Digital home ♦ Network attached storage for home use ♦ Portable wireless hard drive ♦ Home multimedia server - home wireless speaker

system ♦ Portable wireless speaker ♦ Digital home applications and software


The Company generated NT$51,638,181,000 in net revenues in 2015, up 22% from the previous year. Group-wise, net revenues from around the world totaled NT$65,589,293,000 in 2015, up 26% from the previous year. Consolidated net income amounted to NT$1,816,935,000, up 13% from the previous year. This performance was largely attributed to a well-diversified product portfolio, strong and beneficial customer relationships, and continual investments into new technologies. A sum of NT$2,104,487,000 had been spent on research and development during the reporting period. R&D projects were aimed towards developing new designs, new technologies, production improvements, and products with market potentials. The Company has been able to introduce new products and begin mass production in all product lines, including notebook touchpads and computer accessories for gaming notebooks. In a relatively matured market such as computer accessories, the Company has been able to secure growth by moving towards high-end technologies and more sophisticated man-machine interfaces. Furthermore, consumers' increasing demands for high-end cellphone cameras and features such as optical image stabilizer have boosted the sale of new camera modules significantly. Last but not least, the Company has been presented with new opportunities in the electroacoustic sector on top of its solid portfolio, making non-computer accessories another revenue-contributing sector for the Company. While revenues rose, the Company continued to tighten control over various costs and expenses, which resulted in the improvement of overall profitability.

▼ 2015 consolidated revenues between Taipei Headquarter and all four plants in Dongguan, China (unit: NTD thousands)

Gross profit 5,747,624

Net operating profit 1,772,982

Employee salary and welfare 5,817,508

Payments to capital contributors (dividends) 844,372

Payments to government (income tax, sales tax, VAT etc) 699,445

Community investments, such as donation to charity organiza-tions (donation) 1,781

Exceptional business performanceSimultaneous growth in revenues and profits

18

New opportunities from climate changes

Financial impacts, risks and opportunities from climate changes will be addressed in subsequent reports, as the Company expects to begin implementation of its climate risk management system from the next reporting period (expected to be completed by 2017). In the meantime, we will actively explore new opportunities in climate changes by participating in various programs organized by government authorities, including carbon footprint product category rules (CF-PCR) and carbon label developed by the Environmental Protection Administration (EPA) for mice and keyboards. The Company's long-term devotion in green product development had won financial subsidies from both Taiwanese and Chinese governments in 2015. In Taiwan, we jointed Taiwan Environmental Management Association in the establishment of EPA product category rules for mice and keyboards, and plan to apply for EPA carbon label for our mouse products in 2016. In China, our energy conservation project was subsidized by the government for RMB 185,000.

We also undertook several energy conservation projects in 2015, from investment of energy-saving equipment, survey of energy usage, to creating reduction plans. For more details, please refer to chapter "Efficient energy use, it matters." The Company has been implementing ISO 14064-1 - Greenhouse gas inventory since 2007. External institutions were engaged since 2010 to certify the Company's efforts in greenhouse gas management. We are an active participant of the carbon disclosure project (CDP), where we make full disclosures of the practices we take in response to climate changes and the results yielded. Details relating to 2015 greenhouse gas emission can be found in chapter "Effective GHG control."

Strategies for climate change

We understand that the key to sustainable business lies in how we make use of social and environmental resources, which is why we have devoted much attention to environmental protection topic. We view climate change as one of the significant risks in corporate operations, which is why we shall continue to fulfill our corporate responsibilities in mitigating impacts of climate changes. The following are our strategies with regards to climate change:

• Prevention ♦ Obtain certification for greenhouse gas emission on a company-wide scale.♦ Actively participate in technological collaboration with government agencies and external institutions to further

enhance environmental management.♦ Study local and global regulatory trends; take preemptive responses toward upcoming changes.

• Reduction: Implement energy conservation and carbon/waste reduction measures throughout the entire company; aim to reduce GHG intensity by 8% in 2016 as compared to 2015.

• Operation: Realize goals toward green operation, green production and green supply chain.

Consolidated revenues (in NTD M) Consolidated net income (in NTD M)

2013 2014

42,320

65,589

52,240

2015 2013 2014

669

1,817

1,609

2015

Compound annual growth rate (CAGR)

CAGR= CAGR=


Well-experienced board,highly diversified talents

A strong board of directors works in favor of shareholders' interests, and is the key to sustainability. All directors have placed the Company's and shareholders' long-term interests at the top of their priority, and formulated strategies in an objective manner. We have long adopted the corporate governance principle, separating business ownership from management and creating a board of directors through transparent process with the involvement of all shareholders. Furthermore, several functional committees have been assembled under the board to assist its duties. The Company upholds corporate governance at a standard that complies or even exceeds what the laws require. By helping the board function, we provide the ultimate assurance to shareholders' interests.

Board members of Primax Electronics are elected by shareholders. The board had 9 members as of the reporting period, including one Chairman and three independent directors. Chairman Raymond Liang was not concurrently involved in the management of the Company. All members of the highest governance body possess the adequate skills, knowledge and experience to accomplish their duties. Amongst the 9 directors on the board, 1 of whom was in the 71~80 year age group, 5 were in the 61~70 year age group, and 3 were in the 51~60 year age group. The board is already considered diversified in terms of age distribution, and is currently undergoing transition into new generation. However, given the fact that the Company still lacks a female member on board, it will consider gender diversity as one of the main focuses during the next board election. A Remuneration Committee and an Audit Committee have been created under the board of directors. Please refer to "Primax Electronics Audit Committee Foundation Rules" and "Primax Electronics Remuneration Committee Foundation Rules" for details regarding the size, term, responsibilities, and conference rules of the Audit and Remuneration Committees.

Avoidance of conflicting interestsA total of 8 board of directors meetings were held in the reporting period. All directors had taken step to avoid involvement in conflicting-interest agendas. For example: During the board meeting dated January 25, 2016, directors were called to discuss 2015 bonus distribution for the Company's executive managers, for which Directors Yang Hai-Hung, Pan Yung-Tai, Pan Yung-Chung, and Tsao Chung-Feng had disassociated from discussion and voting that concerned their own interests. The second agenda of that meeting was a discussion of the Chairman's 2015 bonus, for which the Chairman had disassociated from discussion and voting because it concerned the Chairman's own interests. For more disclosures regarding avoidance of conflicting interests by the highest governance body, please refer to the corporate governance chapter in Primax Electronics' "2015 Annual Report."

Age 51-60

Age 61-70

Age 71 and above

33%

56%

11%

Age distribution ofboard members

20

Remuneration policy of the executive managementAccording to "Primax Electronics Remuneration Committee Foundation Rules," the Remuneration Committee is created directly under the board of directors to review remuneration policies, systems, standards and structures, and to approve and evaluate performance target for all directors, executives, and managers. Directors are remunerated according to the terms of the Company's Articles of Association. Executives and managers are remunerated based on a combination of fixed salary, year-end bonus, and variable bonus determined by yearly performance results. The fixed salary is set at a level deemed competitive within the industry, whereas the variable bonus is calculated based on a number of factors including the overall business environment, company growth, performance targets and weights, and how these targets are accomplished. These sums are reviewed by the Remuneration Committee and executed with the approval of the board of directors. The Company may issue stock options, restricted shares or use other incentives of material effect to retain managers that exhibit long-term potentials. These incentives are also reviewed by the Remuneration Committee and executed with the board's resolution.

Shareholders

Chairman

CEO

Board ofDirectors

CSR Office

Operations Audit

RemunerationCommittee

AuditCommittee

Globalpresence

MainlandChina

Japan

USA

Investor Relations

Non-com

puterA

ccessories Group

Hum

anR

esources Division

Finance andA

dministrative D

ivision

IT Departm

ent

Quality D

epartment

Legal and IntellectualProperty D

epartment

R&

D C

enter

Com

puterA

ccessories Group


▼ Board members and gender statistics

Title Name Gender Academic and career background

Chairman Raymond Liang MaleDepartment of Business Administration, National Tam Kang UniversityChairman of Destiny Technology Corporation

Director / General Manager Yang Hai-Hung MaleMaster of Mechanical Engineering, University of TexasGeneral Manager of Products Division of Primax Electronics

Director Yang Chi-Ting MaleMBA, University of Southern CaliforniaChief Auditor of Chailease Holding Company Limited

Director and General Manager of Business Department

Pan Yung-Chung MaleDepartment of Electronics, Feng Chia UniversityVice General Manager of Business Department of Primax Electronics

Director and General Manager of Business Department

Pan Yung-Tai MaleDepartment of Mechanical Engineering, Chung Yuan Christian UniversityVice General Manager of Ether Optronics

Director and Vice General Manager Tsao Chung-Feng Male

EMBA, National Taiwan UniversitySenior Assistant General Manager of Primax Electronics

Independent Director Ku Tai-Chao MaleBachelor of Law, National Taiwan UniversityVice President of Taiwan Stock Exchange Corporation

Independent Director Wei Yung-Tu Male MBA, University of GeorgiaPresident of Deloitte & Touche

Independent Director Cheng Chih-Kai MaleDepartment of Management Science, National Chiao Tung UniversitySenior Vice President of Synnex USA

CSR Office, a formal part of the organizationDuring the reporting period, Primax Electronics created its own Corporate Social Responsibility Code of Conduct specifically to guide its fulfillment of corporate social responsibilities and sustainability goals, and for the purpose of managing economic, environmental and social risks and impacts. This code of conduct introduces "Corporate Governance," "Sustainable Environment," "Social Interest," and "Information Disclosure" as the four main focuses through which Primax Electronics will fulfill its corporate social responsibilities. The code of conduct is a testament of how the highest governing body and management have devoted themselves to CSR topic.

To uphold this code of conduct, a new CSR Office was created by the Chairman under the board's direct authorization. It was created with the responsibility of establishing CSR policies, systems and guidelines. The CSR Office comprises of three sub-sections named Social Engagement, Green Operations, and Corporate Governance; they are responsible for identifying economic, environmental and social impacts, and engaging stakeholders on various topic of concern. The CSR Office is required to assist fellow departments and units in the implementation of CSR

projects in conformity with the Company's economic, environmental and social efforts. It is also responsible for gathering best CSR practices locally and abroad, while offering suggestions and guidance to departments for the sustainability of the entire company.

Furthermore, according to Article 8 of "Primax Electronics Corporate Social Responsibility Code of Conduct," the CSR Office is responsible for proposing the Company's CSR mission, vision, policy, system, guideline, and action plans for the board's approval.

According to the head of CSR Office, the executive management of Primax Electronics has long been devoted to sustainability topic. The CSR Office has been entrusted with the duty to gather information on external initiatives, review action plans, coordinate responsibilities, and review performance for all economic, environmental and social topic concerning the Company's business activities. The CSR Office is authorized by the board of directors to report directly and regularly to the Chairman. It is a symbol to the level of commitment the Company has made towards sustainability.

22

Chairman

CSR Office

GreenOperations

Team

CSR strategy/planning/execution/management

CorporateGovernance

Team

SocialEngagement

Team

• Corporate Governance

Evaluation

• Investor and public

relations

• Green design and product

responsibilities

• Green production

• Environment, safety and

health

• Energy conservation &

carbon reduction

• Employee care

• Employee welfare

• Social communication

and feedback

• Compliance with EICC

guidelines within the

organization and supply

chain

Resp

on

sibilities

▼ Organization of the CSR Office


Ethics and integrity,humanity's most noble values

Individual moral standards

All conduct must be based upon integrity and respect; acts of

violence/discrimination/sexual harassment/fraud/deception are

strictly prohibited.

Rules on gifts and treatments

Employees are prohibited from accepting cash kickbacks, gifts, vouchers and improper gains or

any kind

Protection of business secrets

Business secrets are key to the Company's competitiveness,

and therefore must be protected against infringement

or improper disclosure.

Avoidance of conflicting interests

Employees must not abuse their job authorities to seek gains for self or for any third

party

Compliance with fair trading

The Company competes fairly and honestly by leveraging its ability to

provide exceptional goods and services.

Employee Codeof Conduct

Whistleblowing and disciplinary principlesIntegrity and respect are the basic principles that all employees are

bound to adhere to. Violators will be subjected to disciplinary actions, and employees are encouraged to report

misconduct in this regard.

24

▼ Through meetings, promotional videos and fun activities, we convey our integrity values throughout the Company in a comprehen-sive yet easily understandable manner.

We believe "integrity, credibility, and compliance" to be the root upon which an organization may thrive and flourish. The executive management has implemented a set of "Primax Electronics Integrity Policy" based on "Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies" and "3rd Corporate Governance Self-evaluation Criteria" developed by TWSE Corporate Governance Center to enforce business integrity from the top-down. Through the use of meetings, promotional videos and fun activities, we convey our integrity values throughout the Company in a comprehensive yet easily understandable manner.

To ensure employees' compliance with basic code of conduct in all business activities, we have introduced a job rotation system with the implementation of "Primax Internal Rotation Policy." By rotating employees within the organization, we hope to help employees develop the skills and visions needed to advance in their careers, while at the same time prevent operational risks and maintain transfer of knowledge. The Company announces new rotation guidelines and plans each year for job roles such as procurement, warehousing, material control etc. Job rotations may occur within department, across department, or even across companies of the same group.The rotation program is as follows:

Furthermore, we have implemented "Employee Code of Conduct" as a behavioral guideline for all employees when conducting business activities. During the reporting period, the "Employee Code of Conduct" underwent a number of revisions to outline rules concerning individual moral standards, gifts and treatments, protection of business secrets, avoidance of conflicting interests, compliance with fair trading, and whistleblowing. Employees are entitled to report any violation against laws or the code of conduct to the head of department, the human resource department, the legal department, or to email addresses [email protected] or [email protected]. All above reporting channels have been made accessible on the Company's intranet. For employees' best protection, the names and identities of informants and investigators will be kept strictly confidential. As an encouragement to reporting violations, the Company rewards informants a minimum of NT$1,000 or equivalent for reporting misconducts that are proven to be true. If the reported misconduct is found to have caused material losses to the Company, the informant may be rewarded an equivalent of NT$3,000 or above plus a merit of equivalent weight. Employees are encouraged to seek advice and assistance from line manager, the human resource department, or the legal department if they are unsure whether a behavior constitutes a violation against laws, policies, or internal rules. In 2015, Primax Electronics received no complaint concerning the Company's/employees' violation of business integrity or involvement in illegal activities.

Announcement ofrotation guidelines

Communication ofrotation arrangement

(between managerand staff)

Execute handoverand rotation plan

Performanceevaluation

Environmental protection



Management approach

As an electronic manufacturer, Primax Electronics devotes great attention to the energy efficiency of products produced and the treatment of hazardous waste. During the reporting period, we have set goals to "reduce energy intensity and minimize discharge of hazardous waste," both of which were approved by the executive management and are being enforced as a major part of the Company's environmental guidelines. Furthermore, we engage third-party institutions to examine our greenhouse gas emission and survey carbon footprint on a yearly basis. Because of our efforts, there had been no violation against environmental laws or related fines during the reporting period.

Another thing worth mentioning is that, before these practices were made mandatory in international conventions such as RoHS (EU), ErP (EU) and ISO/TS 14067 (carbon footprint), Primax Electronic had taken one step ahead to adopt them. For this reason, the Company's 4 Dongguan plants was named "Environmental Friendly Business of Dongguan City" in the first year of this award, and passed its environmental review later in 2013. These environmental-friendly practices have proven valuable to our business activities. In addition, they also help us accomplish many of our goals in response to world's changing environment.

Certifications awarded by external organizations and third-party institutions in recent years

• ISO 9001 - Quality management system• ISO 14064-1 - Greenhouse gas inventory• ISO / TS 14067 - Carbon footprint survey• ISO 14001 - Environmental management system• IECQ QC080000 HSPM - Hazardous substance process management • OHSAS 18001 - Occupational health and safety management system

Environmental friendliness is more than a slogan,its an immediate form of action.

28

ISO 14064-1Greenhouse GasInventory System

ISO 14001 Environmentalmanagement

system

QC080000Hazardous SubstanceProcess Management

System

ISO/TS 14067Carbon FootprintSurvey Standards


Forest is a valuable source of wood fiber, a raw material for paper. In view of receding forest edges around the world, it is our responsibility to make the most efficient use of paper to save our remaining forest. The Company has completed the implementation of paperless process and e-correspondence for all activities throughout the organization, from business, R&D, procurement, production, inventory management, supplier relations, treasury, to accounting. This paperless process not only eliminates the complexity involved with paper signatures and makes communication more efficient, it also saves a significant amount of paper that would otherwise be used on a yearly basis. Below is a list of digital systems we have implemented over the years.

• Systeme, Anwendungen und Produkte in der Datenverarbeitung (SAP®): sales order, material planning, production scheduling, inventory management, financial management, operational analysis

• Product Data Management (PDM®): R&D management, R&D record, engineering document management, modification management

• Business Process Management (BPM): mold management, accounting process management, attendance management, business travel management

• Warehouse Management System (WMS): warehousing management

• Human Resources Management System (HRMS): personnel management

• E-supply system: supplier order management• Other supporting systems: quotation system and other

administrative systems

Forest protectionthrough e-correspondence system

SAP® WMSPDM® HRMSBPM


Operational / Transactional Application

32

Efficient energy use,it mattersEnergy consumption is a main cause of climate change, because the combustion of non-renewable fuel creates greenhouse gas (GHG) among other environmental impacts. Making efficient use of energy is key to mitigating climate changes, and is a goal we strive to achieve by continually improving our production procedures. In 2015, we gathered sophisticated data to help enhance our existing energy strategies.

Gasoline, diesel, natural gas and purchased electricity are the only types of energy source used by the Company. Consumption of gasoline, diesel, and natural gas totaled 953,873,224KJ, 4,701,228,278 KJ, and 19,655,041,782 KJ, respectively, in 2015. Consumption of electricity totaled 319,814,125,200 KJ. Overall energy consumption amounted to 345,124,268,484 KJ, which was equivalent to an intensity level of 64917.86KJ/NT$10,000, or a 14.80% reduction from the previous year.

▼ Energy consumption statistics

2014 2015 Compared to the previous year Remarks

Natural gas (unit: KJ) 21,852,665,440 19,655,041,782 ▼ 10.06%Natural gas is used only at the four plants in Dongguan; calorific value=9,310kcal/M3

Diesel (unit: KJ) 2,908,639,825 4,701,228,278 ▲ 61.63%

1. Additional fuel was used for power generation due to expansion of production capacity.

2. Calorific value of diesel: Taiwan = 8,400 kcal/L; China = 10,200 kcal/kg.

Gasoline (unit: KJ) 986,587,109 953,873,224 ▼ 3.32%Calorific value of gasoline: Taiwan = 7,800 kcal/L; China = 10,300 kcal/kg

Electricity (unit: KJ) 277,034,558,400 319,814,125,200 ▲ 15.44%1. Additional electricity was

used due to increased production capacity.

2. 1kwh=3,600KJ

Total energy consumption (unit: KJ)

302,782,440,774 345,124,268,484 ▲ 13.98%

Energy consumption intensity (unit: KJ/NT$10,000)

76,198.24 64,917.86 ▼ 14.80%

Energy consumption intensity = total energy consumption/(consolidated revenues of Taiwan headquarter + all 4 plants in Dongguan)


Electronic manufacturing runs the risk of emitting GHG, nitrogen oxides (NOx), sulfur oxides (SOx) and other gases that have significant impacts on the environment. In light of this threat, we have undertaken a number of solutions to reduce GHG emission. Since 2010, we have been working with SGS, a third-party institution, to identify and inventory GHG emitted by our plants, which helped enforce our GHG control strategies. The statistics covered direct GHG emissions, energy indirect GHG emissions, other indirect GHG emissions, and calculated GHG emissions. By disclosing energy indicators, we intend to show the world how far we have accomplished in mitigating environmental impacts, and our ability to respond to carbon controls, rising operating costs, and changes in energy supply and prices. In the last year, our GHG emission control had produced excising results as GHG emission intensity was reduced by 13.41% in 2015 compared to the previous year.

Below are statistics relating to our GHG emission.• Direct GHG emissions (Scope 1): Taipei headquarter

+ 4 plants in Dongguan = 3608.8895 tons CO2e in 2015.

• Energy indirect GHG emissions (Scope 2): Taipei headquarter + 4 plants in Dongguan = 80621.4050 tons CO2e in 2015.

• Other indirect GHG emissions (Scope 3): The Company has yet to survey Scope 3 emission, but will begin tracking GHG emission generated from cross-border travels by employees of Taipei headquarter starting in 2017.

• GHG emission intensity: 15.84kg CO2e/NT$10,000 in 2015.

• Reduction of GHG emission: GHG emission intensity in 2015 was reduced by 13.41% as compared to the previous year.

▼ GHG emission statistics - 2015

Scope 1: Direct GHG emission 3608.8895 tons CO2e/year. Based on GWP value taken from IPCC 2007 4th evaluation report

Scope 2: Energy indirect GHG emission 80621.4050 tons CO2e/year.Emission coefficient: Taiwan = 0.521kg CO2e/KwhChina = 0.9183 kg CO2e/Kwh

Total GHG emission 84230.294 tons CO2e/year

Effective GHG control,emission intensity reduced by 13.41%

34

Energy consumptionintensity (unit: KJ/ NT$10,000)

2014 2015

76,198.2464,917.86

Gasoline consumption statistics (unit: KJ)

2014 2015

986,587,109953,873,223.6

Natural gas consumptionstatistics (unit: KJ)

2014

21,852,655,440

19,655,041,782

2015

CO282,139.5324

CH42,084.6730

N2O2.6814

HFC0

PFCs0

SF60

Total(tons CO2

equivalent/year)84,230.294

GHG Emission by Gas Type - 2015


Testing and preventing air pollution

Air pollution poses adverse impacts on climate, ecosystem, air quality, habitat, agriculture, and human and animal health. Ongoing threats such as deterioration of air quality, acidification, deforestation and public health topic have awoken law makers local and abroad to regulate gas emissions. For this reason, we regularly measure emission data that is relevant to causing air pollution, and strive to reduce emission of such gases.• Emission of ozone depleting substances (ODS): no ODS is released from any of the Company's productions.• Emission of NOx, SOx and other significant gases: the Company is primarily involved in assembly works, which is

less prone to air pollution. No NOx or SOx is released from production activities, while emission of other air pollutants is fully compliant with local regulations. According to local regulations, production processes that involve coating and surface mount technology (SMT) are subject to environmental tests once a year. For the coating process, substances of the most concern include benzene, toluene, xylene, and volatile organic compounds (VOC); for the injection molding process, substances of the most concern are non-methane hydrocarbons; and for the SMT process, substances of the most concern include tin and related compounds. Emission levels are fully compliant with regulations for all pollutants listed above.

▼ Emission of NOx, SOx and other significant gases

Emissions of ozone-depleting substances (ODS)

No ODS is released from any of the Company's productions.

NOx, SOx, and other significant air emissions

Emission of NOx, SOx and other significant gases: the Company is primarily involved in assembly works, which is less prone to air pollution. No NOx or SOx is released from production activities, while emission of other air pollutants is fully compliant with local regulations. According to local regulations, production processes that involve coating and surface mount technology (SMT) are subject to environmental tests once a year. For the coating process, substances of the most concern include benzene, toluene, xylene, and volatile organic compounds (VOC); for the injection molding process, substances of the most concern are non-methane hydrocarbons; and for the SMT process, substances of the most concern include tin and related compounds. Emission levels are fully compliant with regulations for all pollutants listed above.

▼ Air pollutants emitted from production (starting since 2015.10.01)

Benzene Toluene Xylene Total VOCs

Tin and related

compoundsNon-methane hydrocarbons Calculation

Emission(Unit: kg/year) 7.15 30.75 33.25 310 1.625 100 Measured value x emission

volume x days operated

35 ▲ Coating waste treatment equipment for Liuwu Plant phase 5.

36

In order to make factory facilities more energy-efficient, we have been exhausting all solutions possible to reduce energy consumption. One of the methods we have taken towards achieving this goal is to continually replace old and power-hungry equipment. So far, we have replaced the energy-intensive chiller used for central air conditioning at the 4 Dongguan plants and upgraded them with high-efficiency LED lighting equipment. The office premise has also undergone improvements by applying films on all windows.

• The Liuwu 4 plants (Dongguan) has eliminated 63 energy-intensive type-Y motors aggregating to a total capacity of 915KW, and replaced them with type-YE3, grade-1 efficiency machinery. By comparing the rating of old machinery aged 10 years and above and new, energy-efficient counterparts, this replacement is estimated to save 129,500 Kwh of power per year.

• The central air conditioning system used at Liuwu 4 plants (Dongguan) has a capacity rating of 7900TR, and the chiller system alone represents 40% of energy consumed by the air conditioning system. In view of this significance, we have chosen to use energy-efficient inverter chiller manufactured by McQyary (USA), while at the same time introduced an inverter system to the circulation pump and a Direct Digital Control (DDC) System to optimize temperature setting, equipment booting, and operation of air conditioning units. By comparing fixed and varied frequency of pumps and fans, the above changes have been estimated to save 1 million kilowatt-hours of electricity per year.

• Central air conditioning system of Liuwu 4 plants (Dongguan) now has chiller temperature set at 7 degrees Celsius during summer and 8~9 degrees Celsius during

winter. Raising chiller outlet temperature by 1° saves 0.29~0.38 Kwh per hour, and approximately 1.6 million Khw per year based on current industry standards.

• Liuwu 4 plants (Dongguan) optimized the number of lighting tubes while at the same time complying with safety lighting standards. 15,600 LED tubes were acquired to replace old tubes, which improved power efficiency by 212KW. By comparing the rating of T8 36W tubes with 16W LED tubes, the plant is expected to save 1.588 million Kwh of power per year

• Glass windows of Liuwu Plant office building (Dongguan) were covered with films to reduce indoor temperature and hence minimize use of electricity on air conditioning. Power generators at Liuwu 4 plants (Dongguan) were integrated to avoid wastage on additional capacity.

• As per customer's requirement, production line PH2 at Liuwu Plant (Dongguan) needs to be powered all year long. Instead of installing a new power generator, we chose to integrate pipelines of existing generators and ultimately achieved the customer's requirements. At the same time, we avoided extra power consumption that would otherwise have occurred if a new, dedicated generator was installed.

• By linking the main power generators, the total capacity could be used more flexibly to compensate peak requirements of certain plants, and thereby eliminated the need to install new power generator.

Explore all energy-saving solutions;replace power-hungry equipment

▼ Replaced old power generators with 63 high-energy efficiency units for a total capacity of 915KW, saving 129,500 Kwh per year

▲ Old power generator ▲ Energy-saving power generator


▼ 15,600 light tubes were replaced with LED in 2015, saving 1.588 million Kwh per year

▲ 16w LED light tube▲ 36w ordinary light tube

▼ Seasonal adjustment of chiller temperature, saving 1.6 million Kwh of power per year

▲ Chiller temperature set to 8~9 degrees during winter▲ Chiller temperature set to 7 degrees during summer

▼ All office windows at PH6 were covered with films to reduce indoor temperature

▲ With film▲ Without film

▲ Inverter controller group▲ Inverter device for chiller pump

▼ Inverter device was added to the chiller pump, saving 1 million Kwh of power per year

38

▼ Acquisition of energy-saving hardware in 2015 had cost a sum of NT$19,527,250

Serial No. Plant site New equipment added in 2015

Equipment replaced in 2014~2015

Expected expenditure (unit:

NTD)Expected time of

execution

1 Liuwu Main Plant, Dongguan City

Phase 2 - added 3 sets of air compressors; Phase 1 - added a 100P freeze-drier

Eliminated two 50P driers 7,715,000 2015.03


Replaced 63 units with type-YE3, grade-1 efficiency machinery N/A 1,595,000 2015.05


Began use of recycle water at the sewage treatment plant N/A 2,050,000 2015.10

4 Liuwu Main Plant, Dongguan City Installation of flush-free urinals N/A 1,655,000 2015.11

5 Liuwu Main Plant, Dongguan City Switch to LED lighting N/A 6,512,250 2015.02

Regular tracking and analysis of environmental protection expenses helps evaluate efficiency of environmental measuresAssessment of environmental protection expenditure helps us determine the efficiency of our environmental measures, and provides useful information for cost analysis. We will be keeping track and analyzing these expenses in a continuous and thorough manner so that the executive management may have a better understanding to the value of investments made for the purpose of mitigating environmental impacts. Meanwhile, we will continue to develop a comprehensive environmental accounting system to track a broader variety of information. Waste treatment, emission treatment, remedial costs, and prevention/environmental management costs. In 2015, environmental protection expenditure comprised of 6 main categories: equipment, personnel, system management, testing, and energy-saving investment. A sum of NT$57,415,350 was spent during the reporting period.

Serial No. Expenditure category Details Amount (NTD)

1 Environmental protection equipment and construction

Waste, effluent, and emission treatment expenses/equipment maintenance/consumables/reagents/environmental tests

28,543,672

2 Management system and 3rd-party audit ISO14001/ISO 14064-1/IECQ QC080000 certificate/environmental assessment 1,069,006

3 Human resource Personnel salary 17,979,172

4 Testing Testing 2,175,000

5 Energy-saving investment System planning/construction materials 7,448,500

6 Information system GP Portal® maintenance expense 200,000


Clean water is a precious resource because of its rarity. We have long been monitoring the volume of water used at our production plants, and are dedicated to reducing water volume where possible. In 2015, we were able to collect water data in much greater details and accuracy than did previous years; this will help us enhance our water-saving strategies in the future. First, we began measuring water by volume and intensity to determine the level of water needed for production. Next, we devise practical measures to reduce the volume of water used. One example of the measures we have taken was the installation of water purifier at Liuwu Plant. The purifier recycles and filters waste water, making them suitable for watering plants and flushing toilets. Water used in the PTC process is also being recycled, precipitated, and reused again.

According to water usage data gathered during the year, the Company consumed 1,378,530m3 of fresh water in 2015; this represented a 10.28% increase over the previous year mainly because of an increase in production capacity. Intensity-wise, the Company averaged 25.93m3/NT$1 million, which was 17.57% lesser than the previous year. Furthermore, with the help of sustainability training courses, performance evaluation and technical support, we have made significant progress in the recycling and reuse of waste water. In 2015, the Company was estimated to have recycled 305,116m3 of water based on the designed capacity, representing 22.13% of total fresh water used.

Every drop of water counts

Percentage of recycled water

22.13%

Water intensity reduced by

17.57%

compared to the previous year

▲ PDC precipitation tank at Liuwu Plant phase 5. 39

Regular testing of river water qualityRiver not only serves as a source of water, but provides habitat that is vital to creating biodiversity. For this reason, we have devoted part of our environmental focus to keeping rivers clean. By tracking the volume of water discharged, we are able to ensure effective management of production waste water. Designed water treatment capacity of Liuwu Plant in 2015: 6,750m3. Of which, 138m3 of waste water produced from the coating process were treated by locally licensed water treatment contractors. By deducting the above waste water from total water usage, we have estimated general water usage at 1,066,526m3. It is also part of our environmental protection plan to test water quality for pollutants. Liuwu Plant's water treatment team monitors water quality on a yearly basis, and has been able to pass local regulatory requirements in each test. The following are results of the 2015 test.

Unit: mg/L (except for pH)

Measurement pHSuspended Solids (SS)

Chemical Ox-ygen Demand

(CODcr)

Biochemical Ox-ygen Demand

(BOD5)Ammonia Phosphate Oil-related

Results 7.14 25 72.1 18.1 2.47 0.46 1.56

Water usage statistics (unit: m3) Water intensity statistics (unit: m3/NT$1 million)

2014 2015

31%

26%

2014

1,249,976

1,378,530

2015

▼ Comparison of water usage volume and intensity


40


Use of resources and waste treatment

We try not to dispose, discharge or bury our obsolete equipment; instead, we do what we can to make them reusable one way or another. We have gone to great extent in making sure that these equipment are recycled in a proper manner that poses no threat to employees' health or the environment. A series of resource and product recycling activities have been coordinated in support of the above initiatives, and the following are the results we had achieved during the reporting period. Furthermore, the Company inspects sewage treatment plants regularly to make sure that the local environment is not compromised or polluted by waste water.

Waste statisticsThe volume of industrial and general waste produced by the Company totaled 2,559,297.7kg in 2015; 18.67% of which were deemed recyclable. Below are detailed statistics on industrial and general waste. 71,753.6kg of industrial waste were produced during the reporting period, down 7533.2kg or 9.5% from 79,286.8kg a year ago. All 4 Dongguan plants have constructed warehouses exclusively for the storage of industrial waste.They also engage licensed contractors to legally transfer waste to an industrial waste processing station located in Shenzhen. General waste totaled 2,487,544.1kg during the reporting period; 2,009,836kg of which were treated as garbage, while 477,708.1kg of which were considered recyclable. One thing worth mentioning is that the Company had handled waste so well that no major leakage of waste had occurred and no substance deemed hazardous under the terms of the "Basel Convention" Annex I, II, III, and VIII was reported in 2015. All waste is disposed in manners that comply with the laws of China.

Resource reuse is the best waste treatmentWe try not to dispose or bury our obsolete equipment; instead, we do what we can to make them reusable one way or another. We have gone to great extent in making sure that these equipment are recycled in a proper manner that poses no threat to employees' health or the environment. A series of resource and product recycling activities have been coordinated in support of the above initiatives, and the following are the results we had achieved during the reporting period.• Recycling, cleaning, and reuse of unwanted cloth.

30,000 sheets of unwanted cloth were recycled and reused during the reporting period.

• Recycling and reuse of unwanted containers by suppliers 1,509 unwanted containers were recycled and reused during the reporting period.

• Recycling and treatment of used solvents by suppliers 9,540 liters of used solvent were recycled during the reporting period.

• Recycling and reuse of hardware and equipment: below are quantities recycled/reused during the reporting period:

♦ Liuwu Plant recycled 7 air conditioners from its production line and reinstalled them at the dining space.

♦ Liuwu Plant recycled ventilation pipes and thermal materials from its production line and reinstalled them at the clean room.

♦ Liuwu Plant recycled color-coated steel sheets from its production line and used them again at the clean room.

♦ Liuwu Plant recycled 4 lift tables from its production line and used them again somewhere else.

▼ Waste statistics

2014 2015 Compared to the previous year

Industrial waste (unit: kg) 79,287 71,754 ▼ 9.5%

Total general waste (unit: kg)Living: 1,912,260 Living: 2,009,836

▲ 4.05%Recycled: 478,410 Recycled: 477,708

Total (unit: kg) 2,469,957 2,559,298 ▲ 3.62%

42

Primax produces the best quality electronics. All raw materials used are free of toxic and hazardous substances such as lead, mercury, and cadmium. We utilize Product Data Management (PDM), Primax GP Portal® and SAP® systems to verify the composition of all components used in our production. We have so far analyzed the composition of more than ten thousand components, and our database is gathering new entries every day. We abide and adopt international standards to help us evaluate chemical substances contained within various components. These standards include EU RoHS directives (effected since 2006) and Registration, Evaluation, and Authorization of Chemicals (REACH). They have given us a better understanding of how these substances affect our health and environment, and enable us to truly accomplish green product design.

Raw material consumption statistics

In 2015, the Company consumed 6,4262,446 kg of raw materials. These raw materials comprised of 4 main categories: metallic, non-metallic, electronic, and packaging materials.

▼ Raw material consumption statistics (unit: tons)

Metallic

Iron 3,077

Alumi-num 156

Copper 15

Others 1,322

Non-metallic materials, plastic compo-nents, and consumables 24,839

Electronic materials and components 18,102

Packaging materials 16,751

Total 64,262

Absence of toxicity in all components/materials used for Primax products

7%

Metallic Non-metallic

Electronicmaterials

Packagingmaterials

26%28%

39%

Primax obtained green factory certification ahead of the EU's RoHS directives

2003

Carbon footprint standard - ISO/TS 14067 was announced and implemented

2013

Conflict minerals regulation was implemented

2012

Primax initiated green product improvement on high energy consumption shredding machines ahead of the ErP directives

2005

Primax conducted its own green-house gas survey and published its first Greenhouse Gas Survey Report ahead of the Carbon Disclosure Project (CDP) in Europe

2008

Primax became the first compa-ny to announce PCR for mice and keyboards on GED.

2011Primax obtained third party verification on carbon footprint of mouse products in accor-dance with ISO/TS 14067 ahead of the industry.

2013

Assisted Taiwan's Environmen-tal Protection Administration to develop Product Category Rule (PCR) for mice and keyboards

2015

· 2006 EU's ErP directives were implemented

· CDP was implemented in Europe

2009

EU's RoHS directives were implemented

2006

43

Primax's green productionleads the world by far.


Primax obtained green factory certification ahead of the EU's RoHS directives

2003

Carbon footprint standard - ISO/TS 14067 was announced and implemented

2013

Conflict minerals regulation was implemented

2012

Primax initiated green product improvement on high energy consumption shredding machines ahead of the ErP directives

2005

Primax conducted its own green-house gas survey and published its first Greenhouse Gas Survey Report ahead of the Carbon Disclosure Project (CDP) in Europe

2008

Primax became the first compa-ny to announce PCR for mice and keyboards on GED.

2011Primax obtained third party verification on carbon footprint of mouse products in accor-dance with ISO/TS 14067 ahead of the industry.

2013

Assisted Taiwan's Environmen-tal Protection Administration to develop Product Category Rule (PCR) for mice and keyboards

2015

· 2006 EU's ErP directives were implemented

· CDP was implemented in Europe

2009

EU's RoHS directives were implemented

2006

Primax's green productionleads the world by far.

44



Strict compliance with IECQ QC080000 standards for hazardous substance management

Study Share Training Survey Review

Shipping Analysis Manufacture XRF Sampling

Primax studies new environmental regulations thoroughly and makes preparations before the new rules are implemented.

Suppliers generally lack the resources to keep up with new rules. Once Primax finishes studying new regulations, it shares its findings with suppliers through GP Portal, thereby helping them understand the requirements of new laws and guiding them towards GP.

In addition to sharing knowledge, we also organize training sessions and invites suppliers to partici-pate.

Through the use of the GP Portal, we investigate material contents of all our parts and gather test reports relating to them.

Information submitted by suppliers is professionally reviewed by our Green Team. At the same time, in the GP Portal A systematic alert has been implement-ed to warn the reviewer of hazardous substances or conflict minerals, which improves the accuracy and completeness of the review process.

We pack and ship only the products that pass all tests.

XRF is performed not only to test input materials, but also to re-test finished goods to determine whether they are contaminated during production. Doing so assures compliance with GP.

Apart from input materials, Primax also exercises control over all consumables used in production, such as alcohol, cotton, solvents etc. All of which are controlled using the GP system. Green/HF production lines also undergo the same identification and clearance process.

Primax has XRF instruments available on site. The Company performs material tests everyday, and all test results are uploaded onto the PLM system. Any problem identified from the tests would trigger a series of corrective actions.

Once review is completed, the E-Supply system will notify inspectors which parts to undergo the XRF test based on the sampling plan, whenever a batch of purchased materials are due for inspection.

46

Stringent control of hazardous substance

If any toxic substance is detected in our products, we would take immediate steps to reduce and eliminate them from our design, or explore safer, alternative sources of supply. By eliminating hazardous substances from the production process, we not only protect our workers but also prevent Primax consumers from harm and avoid causing pollution to land, air and water.

In the future, we will be escalating our control over the use of phthalate ester. Phthalate ester is a very common plasticizer used in the production of plastics, and therefore it poses much potential threat to human health.

Today, countries including USA, Japan and EU have prioritized their efforts to control this type of substance through regulations. Examples of which include California Toxic Toy Bill AB 1108, REACH Annex 17, and Taiwan BSMI's CNS 4797. The Company will also begin control over phthalate ester as part of its ongoing raw material management.

Green product management system

By combining existing information systems, Primax Electronics has developed a green product management system that addresses various aspects of our operation from regulation, customers' requirements, supplier management, product design to production control. This system enables us to evaluate toxic substances in raw material supply as early as the product development stage. As part of our green product policy, we actively incorporate environmental concepts into green design and management. The green product management system mainly involves linking the GP system with the hazardous substance process to satisfy customer/legal requirements while protecting the environment.

Hazardous substance management process

Our hazardous substance management efforts are guided by International Electrotechnical Commission's IECQ HSPM QC 080000 standards (Electrical and Electronic Components and Products Hazardous Substance Process Management System Requirements). These standards are being followed strictly from customer/legal requirements, component identification, supplier management, raw material examination, production, inventory, shipment, to employee training.

Supplier Management



Supplier ManagementSelection and evaluation of new suppliersManagement approach Environmental regulations and concepts have evolved over the years. From controlling factory pollution in the early stages to mitigating product pollution today, producers are being demanded to undertake more responsibilities for the environment. Primax is mainly involved in the assembly of electronics, which does not produce significant amount of effluent or emission. For this reason, Primax's environmental focus largely concerns the mitigation of product impacts. We have long realized the environmental and social responsibilities of our supply chain. Internally, we monitor our suppliers using the four general principles: Quality, Cost, Delivery and Service (QCDS), and have developed our own supplier management procedures based on local and international rules/regulations. Primax has created a green product management platform that controls the quality of raw materials at the source of the supply chain. In addition, all suppliers are required to sign an environmental commitment, and have the document reviewed by the Company. This environmental commitment outlines suppliers' obligation to comply with the Company's standards and rules regardless of where they operate or what their local laws, corporate policies, or commercial practices are. Each year, the Company organizes training courses to educate suppliers on the topic of hazardous substances and GHG inventory.

The Company's suppliers can be classified into four main categories: material manufacturers, material distributors, contractors, and others (consultants, mold producers, service providers….). The Company engaged a total of 3,278 suppliers, including 1,217 material manufacturers, 266 material distributors (mostly electronic components), 61 contractors, and 1,734 other suppliers. Region-wise, 823 suppliers were located in Taiwan, 2,258 were in China (including Hong Kong), and 197 were in other countries.

▼ Regional distribution of suppliers

Supplier location Count

Taiwan 823

China (including Hong Kong) 2,258

Overseas 197

Materialmanufacturers

Materialdistributors

Contractors

Sundry

1,217

266

61

1,734

Suppliers bytrade arrangement

0.73%

12.66%

22.02%

64.59%

50

Supplier ManagementPrimax GP Portal® - seamless connection of the global green supply chainGP Portal®

With PDM® system at the base, the Company has developed an integrated management information system combining GP Portal®, SAP® and other information platforms to effectively reduce the time and cost of our processes. This integrated system controls virtually every aspect of our operation from customers' requirements, regulations, design, suppliers, procurement, production, to training.

Continual improvement with every supplier reviewWe take supplier reviews as a means to improve suppliers' capabilities. A comprehensive set of procedures have been developed to help suppliers improve and comply with our supplier management policies. All Primax suppliers are required to undergo QCDS assessment before conducting business with the Company. After the initial qualification, the Company conducts regular on-site inspections to make sure that suppliers continue to be able to meet our requirements. Apart from the QCDS assessment, all suppliers are required to sign the Company's environmental commitment or other declaration of environmental protection of equivalent purpose. Only those that pass the Company's review may remain on the Approved Vendor List (AVL).The following is a list of commitments that suppliers are asked to sign as a guarantee that their raw materials and finished goods are entirely compliant with local

and international environmental regulations. Apart from environmental protection, it is also mandatory for suppliers to make commitments with regards to intellectual properties, confidentiality, and source of materials.• Conflict minerals: Since 2012, we have been

complying with the "Conflict Mineral Law" and demanding suppliers to refrain from purchase and use of conflict minerals. Effectively, this ensures suppliers' commitment to providing legitimate source of minerals, and that our purchase of resources such as tin, tantalum, tungsten and gold do not result in the financing of armed conflicts. This policy has been included as one of the prerequisites of all products provided and designed by suppliers. Suppliers that are found to have used conflict minerals will be required to disclose information of the refinery, and issue an announcement over GP Portal® (Primax's green product management platform).

• Restricted substances: It is mandatory for suppliers to guarantee that all products sold to the Company are free of hazardous substances prohibited by local regulations, whether in raw materials, dyes, solvents, consumables, packaging, or production process. Furthermore, suppliers are also demanded to comply with Primax's specific requirements and terms of QW-5Q002 - Green Product Chemicals Specification for all substances used in raw materials, dyes, solvents, consumables, packaging, and production process.


• EICC code of conduct: All suppliers are required to comply with the latest code of conduct developed by Electronic Industry Citizenship Coalition (EICC), and thereby ensure the safety of work environment, respect of all employees, protection of local environment, and morality in every business conduct.

• Integrity commitment: Suppliers and their employees must maintain integrity in all trading and transaction activities, including but not limited to: procurement of materials, work contracting, outsourced production, transfer of equipment, treatment of obsolete/waste materials, customs reporting, workforce dispatch, and subcontracting. They are prohibited from offering any private benefits, whether in the form of cash, securities, non-standard gifts, entertainment or travel incentives, to any Primax employee or relatives/friends/associated parties

thereof; and neither are suppliers allowed to accept private benefits from Primax group and employees. Suppliers must not engage any Primax employee or relatives/friends thereof in lending/borrowing, leasing, or investment arrangement of any kind, or any activity that is not directly related to their job roles. Suppliers must not offer any job arrangement for Primax employee or relatives/friends thereof as an in-kind commission. Suppliers must not commit any behavior that compromises the interest or image of Primax group. Suppliers are encouraged to report any intentional or unintentional violation of proper procurement conduct by a Primax employee. These incidents may be reported via physical mail or e-mail through the following channels with details such as the employee's name, supplier's contact method, the violation committed or relevant evidence. Reporting hotline: +886-2-27989008 ext:1046; Email:[email protected].

GPProtal

SupportTraining

GreenLearning

SAP

PDM

Procurement

Training

ProductionDesign

E-Supply

GPSystem

52

Supplier management CSR guidance for suppliersAs part of our corporate social responsibilities, Primax has implemented the policy to prohibit use of child labor and forced labor. Stringent recruitment process and regular internal reviews are being carried out to eliminate child labor, while suppliers are also instructed to comply with local regulatory prohibitions against "child labor" and "forced labor." In the meantime, Primax requires all its suppliers to sign a commitment to social and environmental responsibilities as well as commercial ethics.

We recognize social and environmental management as an ongoing progress, and a task that can only be accomplished with help. Suppliers' participation is an essential part of our social and environmental management efforts. In 2015, Primax organized a series of SER training and SER on-site inspection to progressively influence suppliers into joining our social and environmental management efforts. In return, we assist suppliers in fulfilling their social/environmental responsibilities.

2015 supplier SER trainingIn 2015, Primax organized corporate social responsibility training to all suppliers it worked with. Through the use of five teaching modules, suppliers were taught on relevant regulations and industry standards concerning worker management, environment/health management, ethics, and governance framework. Meanwhile, suppliers were again reminded of Primax's prohibition against child labor and forced labor.

2015 supplier SER auditIn 2015, Primax audited its suppliers by way of questionnaire and on-site audit. Suppliers were evaluated for their Social & Environmental Responsibilities (SER) using local regulations, EICC and applicable standards. The audit covered a number of areas including workers' rights, health and safety, environmental protection, ethics, and SER management system. The CSR audits found no incident of child labor, forced labor or other violation among suppliers. In the future, we plan to evaluate suppliers' compliance with international labor practices using the Electronic Industry Code of Conduct (EICC), and will be disclosing the percentage of EICC-compliant suppliers. In the next reporting cycle, we will disclose more results of our supplier CSR investigation, and will continue to demand more attention and efforts into social and environmental responsibilities from our suppliers. In return, they will help us in our progress towards CSR management.

Employee care



54


More than 16,000 top talents located throughout the world

Primax Electronics employed a total of 16,284 headcounts worldwide in 2015. Within the boundaries of this report, there were 642 employees located at Taipei headquarter and 13,943 employees located at Dongguan plants. Employees' passion towards innovation has been the reason behind the success of Primax Electronics. We have created a safe, respected, ethical, equal, and diverse work environment where employees may grow. We have also committed substantial resources into developing of human talents to keep the Company ahead of competition in research and development. By creating an attractive work environment, we hope to establish Primax Electronics as the most ideal employer to work for.

Employee structure: by contract type and various indicators▼Taipei headquarter

Male Female Total

Age below 30

(percentage)

Age 30-50 (percentage)

Age above 50

(percentage)

Subtotal (percentage)

Age below 30

(percentage)


Age above 50

(percentage)


Total (percentage)

Local full-time employees

0 102 (15.9%)

22 (3.4%)

124 (19.3%)

0 33 (5.1%)

7 (1.1%)

40 (6.2%)

164

Non-local 0 0 0 0 0 0 0 0 0

Persons with disabilities

0 0 1 (0.2%)

1 (0.2%)

0 0 0 0 1 (0.2%)


22 (3.4%)

284 (44.2%)

10 (1.6%)

316 (49.2%)

17 (2.6%)

131 (20.4%)

9 (1.4%)

157 (24.5%)

473 (73.7%)

Non-local 0 0 0 0 0 0 0 0 0

Persons with disabilities

0 3 (0.5%)

1 (0.2%)

4 (0.06%)

0 0 0 0 4 (0.6%)

Total head count 22 389 34 445 17 164 16 197 642

Managerial roleNon-managerial role

56

▼4 plants in Dongguan

Male Female Total

Age below 30

(percentage)


Age above 50

(percentage)


Age below 30

(percentage)


Age above 50

(percentage)


Total (percentage)


98 (0.70%)

355 (2.55%)

18 (0.13%)

471 (3.38%)

24 (0.17%)

120 (0.86%)

0 144 (1.03%)

615 (4.41%)

Non-local 0 2 (0.01%)

1 (0.01%)

3 (0.02%)

0 1 (0.01%)

0 1 (0.01%)

4 (0.03%)

Persons with disabil-ities

0 1 (0.01%)

0 1 (0.01%)

0 0 0 0 1 (0.01%)


5,732 (41.11%)

2,230 (15.99%)

24 (0.17%)

7,986 (57.28%)

3,398 (24.37%)

1,931 (13.85%)

5 (0.04%)

5,334 (38.26%)

13,320 (95.53%)

Non-local 0 4 (0.03%)

0 4 (0.03%)

0 0 0 0 4 (0.03%)

Persons with disabil-ities

0 0 0 0 0 0 0 0 0

Total head count 5,830 2,591 43 8,464 3,422 2,052 5 5,479 13,943

Retained-to-new employee ratio

This ratio is calculated based on monthly average figures of the year. It is intended to show the monthly average percentage of new recruits relative to total employees for each gender and age group. The ratio is calculated as follows: (Total new employees in 2015 / 12)/(Sum of monthly employee size in 2015 / 12)*100.

▼Taipei headquarter

Male Female

Age below 30 Age 30~50 Age 51 and

above Subtotal Age below 29 Age 30~50 Age 51 and

above Subtotal Total

New recruits 7 134 10 151 12 29 0 41 192

Percentage of new recruits 0.09% 1.77% 0.13% 1.99% 0.16% 0.38% 0.00% 0.54% 2.53%

Managerial roleNon-managerial role

Indirect employees



Male Female




New recruits 228 240 5 473 110 61 0 171 644


New recruits 17,849 2,947 1 20,797 8,799 1,724 0 10,523 31,320


Retained-to-resigned employee ratioThis ratio is calculated based on monthly average figures of the year. It is intended to show the monthly average percentage of resigned employees relative to total employees for each gender and age group. The ratio is calculated as follows: (Total resigned employees in 2015 / 12)/(Sum of monthly employee size in 2015 / 12)*100.

▼Taipei headquarter

Male Female




Employees resigned 2 65 14 81 2 22 2 26 107

Percentage of employees resigned

0.03% 0.86% 0.18% 1.07% 0.03% 0.29% 0.03% 0.34% 1.41%


Male Female




Employees resigned 173 241 8 422 108 63 0 171 593


0.10% 0.13% 0.004% 0.23% 0.06% 0.04% 0.00% 0.10% 0.33%

Employees resigned 16,126 2,889 4 19,019 8,326 1,665 1 9,992 29,011


8.97% 1.61% 0.002% 10.58% 4.63% 0.93% 0.001% 5.56% 16.14%

Indirect employees

Direct employees

Indirect employeesIndirect employees

Direct employees

58

Employee care driven by humanityDisclosure of the management approachAt Primax Electronics, we adopt a fair and equal employment policy because we believe that every employee deserves respect and dignity. To make sure that everyone is treated fairly at our Dongguan manufacturing center, the Company has been communicating openly with local workers to eliminate the use of indebted labor, underage labor, and excessive work hours. In addition to our existing "Healthy Workplace" initiatives, we have also introduced "Safe Workplace" and "Friendly Workplace" as two higher level goals in our workplace management. It is our hope to build a workplace of respect and belonging. In terms of workforce management, we comply strictly with labor regulations imposed by the local government. Employees at Taipei headquarter are governed by "Labor Standards Act" whereas employees at the 4 plants in Dongguan are governed by "Employment Contract Law." Our human resource department has been entrusted with the responsibility of managing workplace and talent development. It oversees an extensive range of personnel affairs including talent diversity, interdepartmental transfer, employee communication, employee care, learning and development, remuneration, welfare and incentives. The Human Resource Department tracks and analyzes workforce information on a regular basis. These analyses provide managers with the knowledge to improve work performance and productivity, and gives executive managers the visionary perspective to employees' performances. Primax Electronics adopts an open communication policy with its employees. Employees are encouraged and able to express their thoughts, concerns and queries directly to any level of management. We are committed to building a communication culture in which employees feel comfortable about asking questions and sharing thoughts with superiors. The Company offers a broad variety of channels to achieve this goal, including daily morning meetings, leaders conferences, quarterly internal meetings, and employee opinion boxes.

Competitive remunerationOur remuneration policy not only complies with local regulations, but is regularly revised to conform with market levels based on local salary surveys. This adjustment is applied to all remuneration strategies throughout the Company in order to maintain competitiveness of our compensation package, while at the same time ensure fairness of remuneration internally. Taipei headquarter offers fresh bachelor and masters graduates a starting salary that is 1.7~1.9 times the local minimum wage. It is a testament to how far we are willing to invest to attract top talents from the market. Recruitment and salary decisions are made based on employees' grades, and are not differentiated in any way by gender. Depending

on job grades, employees are guaranteed a compensation totaling 13~14 months salary per year. We continue to attract talents by offering competitive compensations.

▼ Comparison of basic salary between genders

4 plants in Dongguan Taipei headquarter

Male 1.01 1.11

Fe-male 1 1

Incentive bonus systemThe Company offers a broad range of incentives including annual performance bonus, year-end bonus, patent bonus (NT$50,000 and above), long-service bonus, referral bonus, ad-hoc rewards, quarterly team bonus, and employee profit sharing to compensate employees for their contribution.

Retirement assurancePrimax's pension policies have been established in compliance with local laws. Employees at Taipei headquarter are covered by Labor Standards Act and Labor Pension Act of the Republic of China, under which the Company is required to make regular contributions to employees' pension accounts. Employees at the 4 plants in Dongguan are covered by Social Insurance Law of the People's Republic of China, under which the Company is required to insure employees for pension insurance, so that they may retire with a peace of mind. A new pension system was introduced to Taiwan in 2005; employees existing at the time of change were given the choice to either continue the old system or adopt the new system. For this reason, some employees who came on board on or before June 30, 2005 had chosen to continue with the old pension system, for which the Company contributes 2% of employees' monthly salary to the labor pension fund account. Under the new scheme, the Company contributes 6% of employees' monthly salary into their personal pension accounts. In addition to the 6% monthly contributions made by the employer, employees may also choose to contribute an additional 0% - 6% of their salary into their pension accounts. During the reporting period, Primax had maintained its pension fund assets at 154% of pension liabilities, meaning that the Company is able to satisfy employees' retirement needs at this point.


Protection of employees' human rightsand creation of an equal-gender environment

Protection of workers' human rightsIt is our belief to treat all workers with dignity. We also wish to make our ideals known to local an non-local workers, that it is their right to work in a fair and ethical environment. With this purpose in mind, we have devoted ourselves to creating standardized procedures and making sure that basic human rights are enforced within the organization. Our attention to human rights topic extends beyond Taipei headquarter and applies to all 4 plants in Dongguan. All major investment contracts established by the Company (whether local or abroad) would contain a human rights clause that specifically requires the counterparty to comply with local labor regulations. In addition, we have also assigned manpower to make sure that all our labor policies/practices are fair and compliant with human rights principles. We abide the laws and prohibit the use of child labor and forced labor. We do not subject workers to slavery or human trafficking, and at the same time respect their freedom of association and rights to collective bargaining. The Company prohibits all forms of discrimination in the workplace. Employees are offered humane treatments including reasonable work hours, break time, compensation and welfare. All of which are constantly being improved. During the reporting period, none of the operations exhibited any sign of major

violation against human rights, whether in regards to violation against freedom of association and collective bargaining, use of child labor, sexual harassment, or forced/compulsory labor.

Equal work environmentWe place great emphasis in the creation of gender-equal workplace, and hence ensure 100% compliance with local labor regulations and policies. For the 4 plants in Dongguan, gender equality is governed by "Employment Contract Law," whereas at Taipei headquarter, gender equality is governed by "Act of Gender Equality in Employment." In addition to gender equality, we also strive to provide equal pay and equal opportunities for employees engaged in the same line of work, while at the same time refrain differential treatments based on race, ethnicity, social status, lineage, religion, disability, gender, sexual preference, family responsibilities, marital status, political association, or age. Below are some of the steps we have taken to promote gender equality.• Allowing employees to take unpaid parental leaves and

reinstate position upon return.• Menstrual leave, maternity leave, paternity leave,

tocolysis leave, and family care leave• Nursery break/nursery leave• Installation of nursery facilities

▼ Details of unpaid parental leaves applied at Taipei headquarter during the reporting period:

Male Female Total

No. of employees qualified for unpaid parental leave in 2015 82 21 103

No. of employees applied for unpaid parental leave - 2015 1 3 4

No. of employees expected to be reinstated from unpaid parental leave in 2015 1 4 5

No. of employees reinstated from unpaid parental leave in 2015 0 2 2

No. of employees reinstated from unpaid parental leave in 2014 and have worked for one year since 0 3 3

Unpaid parental leave application rate 1.22% 14.29% 3.88%

Unpaid parental leave reinstatement rate 0% 50% 40%

Unpaid parental leave retention rate 0% 100% 100%

No. of employees qualified for unpaid parental leave = No. of people applied for maternity + paternity leave in the last three years

60

Efficient communication with employeesManagement approachAt Primax, we adopt a "humane" approach where all our activities including product R&D, manufacturing and employee care are driven by "people's needs." In order to learn more about people's needs, it is necessary for the Company to utilize effective communication. For this reason, Primax has devoted special attention to maintain the following communication channels.

• Account Service: We have implemented an Account Service system to address human resource requirements within the organization. The Account Service provider serves as a consultant to all departments concerning administrative queries, personnel affairs, and decision support. Starting from the recruitment stage, the Account Service provider plays the role of an internal consultant and discusses with business departments on their needs for human resource. These upfront discussions are useful for improving the efficiency and accuracy of talent recruitment. Once talents are recruited, the Account Service provider plays the role of a public relations officer and engages employees in frequent, open communications to address their needs at work and in life. They are the key to conveying employees' voices and maintaining employee relations. Account Service providers adopt an management by wandering around (MBWA) approach to ensure more immediate knowledge of employees' needs and better services.

• Regular meetings: The Company has systems in place to establish regular communication with employees. The COO hosts half-yearly seminars to communicate with employees on the Company's overall business plans, prospects, performance, and cultural focus, while every head of department is required to organize quarterly department meetings to learn about their departments and listen to employees' opinions. Any major change of operation or change of employment term that is of concern to employees' interests will be notified in strict compliance with labor regulations. In Taiwan, "Labor Standards Act" requires employers to give employees the following advance notice when

terminating employment: 1. Ten (10) days in advance for those who have worked continuously for 3 months but less than 1 year; 2. Twenty (20) days in advance for those who have worked continuously for 1 year but less than 3 years; and 3. 30 days in advance for those who have worked continuously for 3 years and above.

• Propaganda: The Company uses bulletin boards, e-mails, elevator displays, and corridor displays to convey internal announcements and messages so that employees are constantly aware of activities and plans that are happening within the Company. Compared to other means of communication, the above methods deliver messages in a more subtle way.

• Employee grievance channels: The Company has employee grievance/opinion mailbox, complaint hotline, and survey systems in place to gather suggestions or uncover dishonest conducts, unfair treatments, sexual harassment or any behavior that is against the Company's interests. The Human Resource Department will assemble an investigation panel upon receiving a complaint. If the complaint involves a suggestion, it will be referred to the responsible unit for improvements; if the complaint involves a misconduct, then the outcome of the investigation will be notified to the subject and line manager for disciplinary action. Taipei headquarter received no complaint from employees in 2015. Meanwhile, the 4 Dongguan plants received a total of 24 complaints, all of which had been addressed and improved upon.

In addition to the above, the Company's Taiwanese and Chinese operations have also developed their own methods of communication that are suitable for the given regulations, culture and environment.


Taipei headquarters• Employee opinion survey: The Company conducts online surveys on a regular basis to investigate employees' opinions

with regards to their welfare and health promotion measures. Employees are encouraged to voice out their thoughts and suggestions so that improvements can be made to better address their needs.

• Welfare committee and labor-management meetings: Both meetings are held at least once per quarter, during which employees are given the opportunity to express their needs and suggestions. These suggestions are continually discussed between employees and the Company until a consensus is reached, and the Company would satisfy employees' requests to the extent deemed capable and reasonable, and thereby minimize chances of dispute.

4 Plants in Dongguan• Discussion with entry-level

employees: The Human Resource Department organizes regular discussions with entry-level employees to gather opinions, while at the same time requests heads of department to propose feasible improvements and keep track of changes made. Employees are notified via E-mails and public announcements about the progress of their opinions and suggestions.

Labor-management communication channels Taipei headquarter 4 plants in Dongguan

Account Service ● ●

Communication Conference ● ●

Employee Grievance channels ● ●

Propaganda ● ●

Welfare committee and labor-management meetings ●

Employee opinion surveys ●

Discussions with entry-level employees ●

62

Career planning and promotion system

Inspiring employees' potentials

for whole new career opportunitiesManagement approach

We place great emphasis on human resource and treat employees as the most valuable capital to the organization. We exercise humane management and adopt a robust career development and promotion system to cater for our employees from recruitment, transfer, to retention. These systems have been designed not only to support employees' career development, but also to inspire their potentials and open them up to whole new opportunities. One of the distinctive features of this promotion system is that, when an employee requests to be transferred to another department or location, the Company will take initiative in coordinating the transfer, and offer allowances or subsidies where appropriate when transferring to a different location. The following is an illustration of our career development and promotion system.

Work target setting

Job target setting

Time: Beginning of the year

Performanceplanning

Remuneration and reward

Career development

Managers develop consensus with employees about the nature of their works

Both parties shall sign once agreed

Developconsensus

Work guidance/correction

Performance feedback

Year-end assessment

Feedback andcorrection

Award performance rating based on target accomplishment

Performance improvement plan

Training and development plan

Year-end discussion

Results and rewards

Combine training

Performanceassessmentand career

development


Performance Review and Development (PRD) systemPrimax has implemented a PRD system to facilitate two-way communication between employees and their managers. This process allows employees to develop a thorough understanding about their work performance and the skill sets they are expected to develop in response to future challenges. The PRD also enables employees to customize learning and development plans to suit their skills, preference, and style. The purpose of the PRD system is to help every Primax employee exceed personal boundaries and discover their endless potentials. In practice, the executive management would outline operational goals and have each manager engage in two-way communication with their employees at the beginning of year, mid-year and year-end to discuss the following:

• Annual goal setting: Using the Balanced ScoreCard (BSC), managers will discuss with their subordinates to list out at least 5 goals/responsibilities for the coming cycle. They will also establish quantifiable measurements, assign weight by priority, and use them in performance evaluation accordingly.

• Core skills: Managers will identify at least three skills at the beginning of the year and assign weight based on importance. At the end of year, employees are evaluated on how they have developed the listed skills.

• Career Development/ Assessment: In order to guide employees through their career development, employees are asked to create a list of their own strengths as well as skills that require further enhancement or improvement during year-end performance appraisal. With feedbacks from the line manager, they become employees' next objectives.

One thing worth mentioning is that Primax Electronics encourages employees to transfer across departments, functions or even locations, for it provides good inspiration to their potentials.

▼ Percentage of employees subjected to regular PRD assessment

Employee category Male Female

Taipei headquarter

Managerial role 18.7% 6.2%

Non-managerial role 46.6% 22.1%

Total 65.3% 28.3%


4 plants in Dongguan

Managerial role 17.54% 5.67%

Non-managerial role 50.46% 22.65%

Total 68.00% 28.32%

Note 1: Percentage of employees subjected to assessment = No. of employees across all categories (excluding those who have yet to complete probation) / Total No. of indirect employeesNote 2: Indirect employees: those who are graded G2-1 and aboveNote 3: Managerial role = code L (including shift leaders)

64

Experts

Expert-level professionalsHead of expert team (planning)Head of execution team

Department head

Administrative/assistant personnel

Professionals

Senior professionals

▼ Whether it is a managerial role or a specialist role, there is abundant room to advance and grow for every Primax employee

Flexible career development systemEmployees may choose to be converted into managerial role or continue their specialist role depending on personal preference, skills and career goals. Whichever way they choose, there are plenty opportunities for them to advance and grow. The dual career system gives every employee the opportunity to grow their specialties and satisfy their career expectations. Whether it is a managerial role or a specialist role, every Primax employee can find their moment to shine within the organization. The Company also has an internal rotation system in place to nurture diverse talents needed by the organization. For employees, the rotation system provides them with the opportunity to explore areas of interest, and develop skills and visions needed to advance in their careers.

Systematic rotation for outstanding talentsWe announce our job rotation guidelines at the beginning of each year, which specifies the particular function and criteria of employees to be rotated during the year. The human resource department then coordinates the rotation based on employees' profile and the Company's requirements, while trying to match the "Rotation Plans" proposed by each department. A "Group Annual Rotation Plan" is prepared and submitted for approval by the Guidance Committee. Department heads are required to discuss the approved "Annual Rotation Plan" with each other and with the rotated employees, and formulate a "Rotation Execution Plan" within the specified due date. The Execution Plan needs to cover details such as timing, communication plan, job handover, training program, responsible mentor etc. Once the plans are set, department heads would be required to train or assign mentor to the rotated employee, and complete the necessary procedures so that employees may report on duty at the approved time. Execution and outcome of job rotations are included as part of annual performance review for the department heads involved.


Employee training

Robust training system

that helps develop self-learning habits

Training ofprofessional

skillsEnhance professional/

technical skills in a customer-centric

manner

Training ofmanagerial

skillsEnhance the abilityto lead and think

strategically

Training of ordinary skillsDiversified and inspirational learning

Competency

66

Management approach

We are devoted to creating a self-inspired learning environment where learning is accepted as a habit and an inseparable part of work and life. During the learning process, we encourage employees to share what they have learned with colleagues and therefore facilitate growth as a team. Our managers often play the role of mentor and discuss with employees one-on-one about their work progress, while at the same time giving them the most direct and immediate guidance. It is also part of the managers' responsibility to adjust employees' learning instruments where appropriate.

Education and training framework

Our learning and development programs are centered around work-related skills. They are closely associated with the Company's future strategies and goals. The training system is divided into the following three categories.• Specialist training: This type of training focuses on professional skills needed to serve customers, for which we have

made available a broad range of courses from R&D, quality control, engineering, manufacturing, business, procurement, consultative relationship management, to supplier management.

• Managerial talent training: Courses have been planned to help employees develop the leadership and strategic thinking needed to accomplish managerial roles of all levels, and to provide strong link between upper and lower management.

• General skills training: These courses are intended to bring diversity and value into employees' career. Apart from language courses, the Company also provides general knowledge training to inspire employees' potentials in other areas, and make learning a more meaningful activity.

Diverse learning channels

• On-job training: Generally refers to training received while performing work activities. On-job training exists in various forms such as meeting participation, project (task) involvement, and job rotation.

• Internal training: Available in three main categories (management talent, specialist, and general skills training), the courses offered cover anything from orientation, management skills, technical skills, quality assurance, general knowledge, to English.

• External training: Employees are fully subsidized for training courses organized by external institutions. These subsidies are provided as an encouragement to continual improvement of professional skills, or development of secondary skills depending on employees' career potentials.

• Overseas training: Employees who exhibit exceptional performance and potentials may be chosen to participate in short-term overseas training or conference as an opportunity to broaden their global vision.

• Self study: Employees are encouraged to study knowledge and skills at their own time, and may even apply for flexible work hours to enroll in educational programs. Furthermore, to support the Company's globalized businesses, employees are also encouraged to develop language skills by taking up English courses. Internally, the Company makes book recommendations from time to time and subsidizes book purchases as a means to promote reading habits.

• Online learning and social network: The Company has created a digital learning management system called "e-Learning" The system offers courses that can be studied online, such as general knowledge, basic professional knowledge, and English language. The e-Learning also has its own forum and blog to facilitate knowledge exchange and discussions.


Our learning and development programs are centered around work-related skills. They are closely associated with the Compa-ny's future strategies and goals. The training system is divided into three main categories: specialist training, managerial talent training, and general skills training. This training system has been designed to inspire employees' skills and potentials, and make their learning efforts more meaningful.

A training system centered around work-related skills

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During the learning process, we encourage employees to share what they have learned with colleagues and therefore facilitate growth as a team. Our managers often play the role of mentor and give them the most direct and immediate guidance. It is also part of the managers' responsibility to adjust employees' learning instruments where appropriate.

Learning as a group


▼ Average training hours of employees at Taipei headquarter


Total training hours

Employee count

Average training hours


Employee count


Classroom courses

Indirect employees - managerial role 1,757 125 14.1 218 40 5.5

Indirect employees - non-managerial role 2,310 320 7.2 855 157 5.4

Online courses Indirect employees 67 455 0.2 62 197 0.3

Total 4,134 445 9.3 1,135 197 5.8

▼ Average training hours of employees at the 4 plants in Dongguan

Male Female

Role Total training hours

Employee count



Employee count


Classroom courses

Indirect employees - managerial role 3,014.5 268 11.25 717.5 81 8.86

Indirect employees - non-managerial role 16,123 2,020 7.98 5,991 1,074 5.58

Direct employees 166,992 6,176 27.04 79,376 4,324 18.36

Online courses Indirect employees 305 2,288 0.13 286 1,155 0.25

Total 186,434.5 8,464 22.03 86,370.5 5,479 15.76

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Work-life balanceFlexible work hours and leaves that are superior than legal requirements

The Taipei headquarters allows employees to choose between 4 flexible work hours: 08:00~17:00, 08:30~17:30, 09:00~18:00, and 09:30~18:30. These options provides greater flexibility for parents to pick up/drop off their children, and for night owls to have enough sleep before coming to work.

The Company has a leave system that is superior to what the law requires. The Taipei headquarters allows employees the flexibility to take deferred leave for certain memorial days that are not actual public holidays. In May or July each year, the Company allows employees a 3- to 5-day continual leave that they can use to plan local or overseas tours, and thus avoid crowds during popular holiday periods.

Employees at the 4 Dongguan plants are entitled to adjust their leaves flexibly during continuous holidays to visit their home. Home visit leaves are also provided during the Chinese New Year period.


Clubs and recreational activities

Exciting life at Primax

Apart from year-end banquets, the Company organizes events such as Family Day and Christmas Party to share its love, joy, prospects and visions with employees. As the organization grows, Primax has come to recognize sustainability as the critical foundation to corporate development. In an attempt to adopt sustainability as part of the Company's culture and gain employees' concurrence to the idea, Taipei headquarter has organized its Family Day for the 2nd year in a row, where employees were invited to care for the society.

Festive party

Taipei headquarter and all 4 Dongguan plants have employee welfare committees in place to organize welfares and exciting activities.

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• Club activities: Primax encourages employees to engage themselves in club activities as a means of developing hobby, bonds with colleagues, and loyalty to the Company. In 2015, there were 10 clubs registered at Taipei headquarter and 6 clubs registered at the 4 Dongguan plants.

• Cash and subsidies: Employees at Taipei headquarter are entitled to cash and subsidies for various occasions such as traditional festivals, wedding, funeral, birthday, child birth, hospitalization, travel, scholarship (for employees and their children), club activities, catering, participation in extreme sports, arts and cultural activities, and book purchase. The 4 Dongguan plants, on the other hand, subsidizes Chinese New Year meals and charity donations.

• Group trips and recreational activities: Although employees are already given abundant leaves that they can use to organize their own trips, Primax still makes group trips a regular event in every year. Taipei headquarter organizes every type of group trip at least once a year; activities such as half-day hikes are organized more than two times a year. In addition, activities such as bowling competition, shrimp-fishing, snorkeling, and exclusive film screening (e.g. Fly, Kite Fly) are also organized to employees' delight. The Company fully subsidizes up to three family members for all above activities. They provide unique opportunities for employees to have fun with their family without extra financial burden.

For the 4 plants located in Dongguan, the most prominent events of the year are the karaoke competition and the basketball tournament. The tug-of-war competition was organized for the first time in 2015. For the karaoke competition, a performance stage is constructed with enough seating to accommodate all employees, where they can applaud for their most admired singers.

Primax karaoke competition


Recreational center and dormitory

The recreational center was constructed in August 2011 with a cost of more than NT$20 million. It occupies 499m22 of land and stretches 8 storeys high with total floor area of 4,000 m22. The entire first floor is occupied by a large convenience store; the second floor features a barber shop, a coffee shop, a photo-printing shop, and a post office to cater for the daily living necessities of our employees. The third floor is a library with tens of thousands of books in its collection; it has enough space to accommodate more than 100 employees at the same time. The fourth floor features recreational facilities including table tennis tables, where employees can relax. The fifth floor has a theater where blockbuster films are screened on a monthly basis, and a computer center that allows Internet surfing and online entertainment for 55 users at the same time. The sixth floor's new dancing classroom was recently completed in 2015. It is being used for fun courses such as belly dancing, yoga, and Taekwondo. Up on the seventh and eighth floor are 33 KTV rooms fully furnished with couch, LCD screen, touch-controlled menu, high-performance sound system, and dazzling lights.

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At Dongguan, employees' dormitories are designed similarly to college apartments with facilities such as air conditioning, television, laundry machine, water heater, personal wardrobe, computer desk, bookshelf, luggage storage, and cafeteria. Taipei employees who have been assigned to business trips are accommodated one suite per person. They also have access to exclusive butlers for housekeeping and laundry, and access to facilities such as gym, pool table, table tennis, lounge etc where they can relax outside of work.

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Taipei headquarter provides employees with abundant welfares and exciting activities, including annual banquets, Primax Family Day, and group trips.

Exciting life at Taipei headquarter!


Safeguard to employees' health and safetyManagement approachPrimax does not compromise on employees' safety. In order to assure employees of a safe working environment, we have followed our Environment Health Safety (EHS) guidelines and created a dedicated team and management system along with robust policies, procedures and standards to guide our occupational safety efforts. All of our production equipment are located at the 4 Dongguan plants. Taipei headquarter is being used as an office building, and hence does not have any production equipment. At Taipei headquarter, the Company has complied with the laws of Taiwan by assembling a Worker Health and Safety Committee. The committee has 9 members in total, 3 (one-third) of whom are employees' representatives. Their presence in the committee is to assist in the supervision and recommendation of occupational health and safety-related topic. This year, we made a full examination of safety concerns in our production lines and introduced precautionary measures to ensure employees' safety at work, and thereby minimize chances of work injury and absenteeism. At Taipei headquarter, we assure employees' safety by providing occupational safety training, accident management, health checkup, and medical services. For the 4 Dongguan plants, we have invited third-party institutions to perform certification on ISO 14001 - Environmental Management System and OHSAS 18001 - Occupational Health and Safety Assessment Series. All 4 plants have passed the above certification. During the reporting period, the Company encountered no occupational injury, illness or any major accident that resulted in death. This is a testament to our dedication of creating a safe and healthy work environment.

Occupational safety measures• Training: Employees are trained on a variety of topics including first aid, mechanical safety, identification of environmental

safety and health risks, hygiene at work, and emergency response. In addition, health seminars are organized to educate employees on health promotion.

• Accident risk control: The Company organizes drills for situations such as fire incident, chemical leak, and emergency evacuation. At the 4 Dongguan plants, fire safety and evacuation are rehearsed every six months across employees of all sections and shifts to improve their responsiveness to emergencies. Furthermore, employees are taught on the use of fire safety equipment and emergency escape, as well as key points concerning property recovery and first aid. During the reporting period, a total of 28,052 Dongguan employees had participated in fire drills and evacuation, while a total of 133 Dongguan employees had participated in the rehearsal of chemical leakage. In the future, we hope to further expand our emergency response system to better protect our employees in the event of fire, earthquake, explosion, or any natural disaster or workplace accident.

• Health checkup: In addition to the regular checkups, the four Dongguan plants also provide special examinations such as ALT, hearing, and ECG for employees involved in high-risk works. Those who operate X-ray machines are given full-body examination targeting skin, liver, kidney and the lymphatic system.

• Medical service: Taipei headquarter and the 4 Dongguan plants all have medical centers and medical staff stationed on site. Each department is equipped with a first aid kit to provide employees with the most immediate medical attention. The medical centers also provide medical consultation and disease prevention services.

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▲ Fire drill and evacuation

▲ Regular occupational health and safety training


Occupational safety statisticsDue to the robustness of our occupational health and safety policies and standard procedures, the Company only experienced minor, isolated incidents during the reporting period, and encountered no major accident that resulted in significant losses or death. Please refer to detailed statistics below. The 4 Dongguan plants exhibited higher incident rate than Taipei headquarter mainly because of their productive focus, the work process and the size of employees involved. To reduce the chances of accident, the 4 Dongguan plants have been tracking previous work injuries (including incidents occurred while commuting) based on EHS laws and standards, and conducted statistical analysis on the causes of incident as shown in the following figure. EHS safety trainings are being organized on an annual basis, while light injuries are being investigated thoroughly, and dedicated safety chiefs assigned to perform daily inspections and rectify potential threats where applicable. All above measures have been taken to raise employees' safety awareness with the hope of minimizing chances of accident.

▼ Statistics on disabling injuries and absenteeism at Taipei headquarter and the 4 Dongguan plants - 2015

Taipei headquarter 4 plants in Dongguan

Male Female Total Male Female Total

No. of people with disabling injuries (work-related injury)

7 3 10 8 2 10

No. of days lost due to disabling injuries 34 17 51 262 34 296

Total work days across all employees 109,025 48,265 157,290 2,065,216 1,336,876 3,402,092

Total work hours across all employees 872,200 386,120 1,258,320 16,521,728 10,695,008 27,216,736

Frequency of disabling injuries 5.56 2.38 7.95 0.29 0.07 0.37

Severity of disabling injuries 27.02 13.51 40.53 9.63 1.27 10.90

No. of days absent 1,023 676 1,699 185,192 101,572 286,764

Absence rate 0.94% 1.40% 2.34% 9% 8% 17%

Note: Calculation:Frequency of disabling injuries = No. of people with disabling injuries * 1,000,000 / total work hours across all employees (excluding overtime)Severity of disabling injuries = No. of days lost due to disabling injuries * 1,000,000 / total work hours across all employees (excluding overtime) No. of days lost due to disabling injuries = occupational injury leave, illness leave, and unpaid leave applied in relation to occupational injuryAbsence rate = No. of days absent (occupational injury leave + illness leave + unpaid leave) / total work days across all employees

Non-compliant conduct

Defective or malfunctioned equipment

Lack of safety awareness

Negligence

Cause of incident

25%

8%

25%

42%

80

Healthy workplace for total health assuranceHealth is the foundation of a brighter future! Primax has always placed employees' health at the top of its priorities, while Taipei headquarter has been relentless in its effort of building a healthy workplace. This multi-layered protection enables employees to take full control of their health and seek medical attention whenever needed. We have executed several measures to promote employees' health.

Regular health checkups that are superior than what the law requires:Employees at Taipei headquarter are given closer examination on modern illnesses, particularly those concerning metabolism, given the nature of their works. Employees may also request for ultrasound examination on abdomen, chest, thyroid, pelvis, or prostate to suit their needs. In addition to the four cancer screening options provided by the Health Promotion Administration, the Company has also added AFP and CEA screening to complement the checkup. Employees who have been identified in the high-risk group will be closely monitored by nurses and given complimentary re-checks six months later. These efforts are intended to enable early discovery and treatment of life-threatening diseases.

Health promotion with the help of physicians and nursesThe Company has complied with Regulations on Workers' Health Protection by hiring full-time nurses on site to assist in health promotion works. In addition, the Company engages licensed physicians to perform on-site services such as medical consultation, treatment of injuries/illnesses, health seminar, and workplace improvement once a month.

Mandatory health management coursesProfessor from the Department of Athletics, National Taiwan University (NTU) was invited to host a 3-hour intensive course on exercising, posture, prevention of sports injury, and healthy lifestyle habits based on the structure of NTU's EMBA fitness course. Every Primax employee including new recruits are required to complete this course, which concerns their performance appraisal and promotion opportunities.

Full support from Employee Welfare CommitteePrimax's welfare committee holds the opinion that employees' welfare budgets should be spent in a manner that yields more long-lasting effects. For this reason, the committee has given its full support to health promotion activities, and has included them as one of the recurring programs each year. In 2015, the Company introduced a daily pacing program accompanied with the use of Mi Band to encourage employees in doing exercises. We believe health promotion to be the best benefit and welfare an employer can offer.

Attractive incentives:In 2015, the Employee Welfare Committee distributed 200 Mi Bands as part of its daily pacing program. Employees who accumulate 10,000 paces a day were given 1 movie ticket, while the top-10 pacers were entitled to receive a digital scale each. The program runs in six-month cycles, and a total of 888 movie tickets had been given out over 3 cycles.

Taipei headquarters

Employee Health andSafety Committee

Human ResourcesDivision

General Affairs(environmental safety/

workplace health)

Central PlantAffairs Division

EnvironmentalSafety Section

Human ResourcesDivision

General Affairs(health)

Safety teams ofvarious plants

The 4 plants in Dongguan

CEO

▼ Occupational health and safety organization of Primax Electronics


Care and support for the ultimate peace of mindEAP - Employee Assistance Program

Primax's EAP began as early as 1997, and has undergone significant changes since then. It started with internal vol-unteers offering consultation in turns, and was later modernized into an online service. In 2015, the 1609 hotline was created as a uniform contact point for all queries including medical, legal, and psychological topic. All queries raised are preliminarily assessed by hotline operators and created on file before they are referred to the relevant resources. Cases are tracked regularly after six months to make sure that problems have been resolved.

Massage services

Primax employees comprise mainly of R&D engineers who put their minds to work all day long. In addition to dealing with stress from work, they are also prone to illnesses such as shoulder/neck pain, frozen shoulder, carpal tunnel syndrome, and high intraocular pressure from prolonged use of computers. To address this common problem, Primax hires blind masseurs and masseuses to relieve employees from the stress and discomfort caused by prolonged use of computers. The hiring of blind masseurs and masseuses provides job opportunities for people with disabilities, and is believed to have worked in favor of multiple parties.

Group insurance that extends to employees' family members

Primax offers group insurance packages that are envied by industry peers.• In Primax, group insurance not only covers employees themselves, but also extends to spouse and unlimited number

of children. Insurance premiums are 100% paid by the Company.• Primax offers a multitude of group insurance covering life, accidents, medical expenses on accidental injury, hospital-

ization, cancer treatments, and critical illnesses.• The sums assured are also above what is commonly offered across the industry.• For each of the coverages mentioned above, the Company conducts annual benefit surveys to make sure that its exist-

ing packages remain competitive as well as comprehensive relative to peers. We hope to guide employees and family members toward taking care of their own health in day-to-day activities, and provide them with the most complete care and protection in the unfortunate event.

82

Emergency aid fund (Dongguan plants)

In addition to mandatory social insurance, all 4 Dongguan plants have set aside an emergency aid fund to provide finan-cial assistance in the most critical time for employees who suffer from major illness, accident or natural disaster.

Social Interest



84


Commitment to the societyDriven by its humane values, Primax Electronics has envisioned a corporate culture of "decency" that motivates the Company's to satisfy the needs of employees, their families, the environment and the society. Step by step, we aim to make our workplace a healthy, safe, and ultimately "decent" place to work in.

Friendlyworkplace

Safe workplace

Healthy workplace

Main goals

Be friendly to employees, theenvironment and the society

Satisfaction at physicaland mental level

Improve abnormalhealth conditions

Respect

Love andsense of belonging

Basic physicaland safety needs

Satisfyemployees' needs

86

This year's Family Day features a charity focus and a theme titled "Primax New Hope." Apart from charity auctions and donations, Primax organized several different activities through which employees may experience for themselves the purpose of each non-profit organization. During the event, Primax donated NT$1 million and invited employees to distribute this amount to the group of their choice. Charity organizations that had participated on that day included: Southern Taipei Family Helper Project, Taitung Kid's Books House, Taiwan Environmental Information System, Concern With Love, HONDAO Senior Citizen's Welfare Foundation, Sunshine Social Welfare Foundation, Osteogenesis Imperfecta Association, and Help-Save-A-Pet Fund Taiwan.

The Family Day quickly became the most highly participated event in Primax's history over the last two years. As the number of participants reached 1,200 in 2014 and 1,800 in 2015, the Family Day has successfully united employees towards a common cause.

Family charity dayPrimax has been organizing its Family Day event in collaboration with charity groups for the second consecutive year. Last year's event featured a number of activities including jogging, charity auction, performance, and donation to make the day as meaningful as it was fun. Charity organizations that had participated on that day included: Huashan Social Welfare Foundation, Yu-Cheng Social Welfare Foundation, Baby

Development Center, Zhi-Shan Foundation Taiwan, Good Shepherd Social Welfare Foundation, Taipei Autism Children Social Welfare Foundation, and Chensenmei Social Welfare Foundation. Proceeds from charity auction plus NT$220,000 of spare changes were entirely donated to the above institutions at the end of the day.

▲Primax New Hope - Family Day

Primax Family Daily visitor count

2014 2015

1,200 Participant count


Primax cares for the EarthIn response to 4/22 Earth Day, Primax organized an internal event called "Green Week" where representatives from The Society of Wilderness were invited to share information on volunteer works, showing employees how it was like to be part of the team that protects the natural environment while at the same time having the opportunity to appreciate the beauties of Taiwan. Throughout the year, Leezen, an organic food retailer, was invited to host seminars and sell its products at the headquarter, giving employees a better understanding towards organic vegetables and foods, as well as the ongoing food safety topic. At the end of the year, employees and family members were invited to an exclusive screening of the film "Fly, Kite Fly," which brought the audience's attention to how abusive use of pesticides has affected the natural habitat and caused the disappearance of eagles in Taiwan.

B1 lounge is being run be charity organizationThe lounge located at B1 of Primax headquarter is where employees go to dine, relax, meet, and conduct business. It has become a crucial facility to employees' 8-hour work schedule. The lounge has a coffee bar and catering facilities available to serve refreshments and light meals to its visitors. It used to be run by private contractors, but this year Primax outsourced its lounge to Victory Social Welfare Foundation with rent and utility expenses fully covered by the Company. Apart from reducing the foundation's operating costs, the Company has also hired persons with disability to bring greater diversity into the talent base, while at the same time giving Primax employees the opportunity to develop understanding and compassion towards people with disabilities.

Bar run by Victory Social Welfare Foundation

88

Educational donations by the 4 Dongguan plants2015 marked the 22nd year of Meizhou Hope Education Foundation. For more than 2 decades, Primax has been contributing to education in Meizhou City by donating RMB 152,000 on every Teacher's Day into "Primax Ye Jianying Memorial Scholarship." In 2010, the Company founded "Shijie Town Primax Scholarship" and voluntarily donated RMB 200,000 each year since to reward outstanding teachers and students in Shijie Town. These efforts have been aimed to improve the quality of education at Shijie Town.

Appendices

0789 Primax Electronics 2015 CSR Report - Appendices


90


Appendix A: SGS Certification


Appendix B: GRI G4 Index

GRI G4 Index

Indicator Numbers Indicator Description Page(s)

General Standard Disclosures

Strategy and Analysis

G4-1Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability

3

Organizational Profile

G4-3 Report the name of the organization 5

G4-4 Report the primary brands, products, and services 15-16

G4-5 Report the location of the organization's headquarters 5

G4-6Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.

5

G4-7 Report the nature of ownership and legal form 5

G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries) 15-16

G4-9 Report the scale of the organization 5, 17

G4-10 Report the total workforce by region/country, employment type, employment contract, and gender 55-56

G4-11 Report the percentage of total employees covered by collective bargaining agreements 59-60

G4-12 Describe the organization’s supply chain 49

G4-13 Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain 15

G4-14 Report whether and how the precautionary approach or principle is addressed by the organization 18

G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses 43-46

G4-16 List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization participates, and the form of participation 43-46

Identified Material Aspects and Boundaries

G4-17List all entities included in the organization's consolidated financial statements or equivalent documents. Report whether any entity included in the organization's consolidated financial statements or equivalent documents is not covered by the report

5-6

G4-18 Explain the process for defining the report content and the aspect boundaries. Explain how the organiza-tion has implemented the Reporting Principles for Defining Report Content 6~10

G4-19 List all the material aspects identified in the process for defining report content 6~10

G4-20 For each material aspect, report the Aspect Boundary within the organization 6~10

G4-21 For each material aspect, report the Aspect Boundary outside the organization 6~10

G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements 6~10

94

GRI G4 Index


G4-23 Report significant changes from previous reporting periods in the Scope and aspect Boundaries 6

Stakeholder Engagement

G4-24 Provide a list of stakeholder groups engaged by the organization 9-12

G4-25 Report the basis for identification and selection of stakeholders with whom to engage 9-12

G4-26Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process

9-12

G4-27Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns

9-12

Report Profile

G4-28 Reporting period (such as fiscal or calendar year) for information provided 4

G4-29 Date of most recent previous report 4

G4-30 Reporting cycle 4

G4-31 Provide the contact point for questions regarding the report or its contents 4

G4-32 Report the ‘in accordance’ option the organization has chosen 4

G4-33 Report the organization’s policy and current practice with regard to seeking external assurance for the report 4

Governance

G4-34 Report the governance structure of the organization 19-22

G4-35 Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees 19-22

G4-36Report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body

19-22

G4-37Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback process-es to the highest governance body

19-22

G4-38 Report the composition of the highest governance body and its committees by categories 19-22

G4-39 Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement) 19-22

G4-40 Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members 19-22

G4-41 Report processes for the highest governance body to ensure conflicts of interest are avoided and man-aged. Report whether conflicts of interest are disclosed to stakeholders 19-22

G4-42Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts

19-22

G4-43 Report the measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics 19-22

G4-44 Report the processes for evaluation of the highest governance body’s performance with respect to gover-nance of economic, environmental and social topics 19-22


GRI G4 Index


G4-45 Report the highest governance body’s role in the identification and management of economic, environ-mental and social impacts, risks, and opportunities 19-22

G4-46 Report the highest governance body’s role in reviewing the effectiveness of the organization’s risk man-agement processes for economic, environmental and social topics 19-22

G4-47 Report the frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities 19-22

G4-48 Report the highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material aspects are covered 19-22

G4-49 Report the process for communicating critical concerns to the highest governance body 19-22

G4-50 Report the nature and total number of critical concerns that were communicated to the highest gover-nance body and the mechanism(s) used to address and resolve them 19-22

G4-51 Report the remuneration policies for the highest governance body and senior executives 19-22

G4-52Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relation-ships which the remuneration consultants have with the organization

19-22

G4-53 Report how stakeholders’ views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable 19-22

G4-54Report the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country

19-22

G4-55Report the ratio of percentage increase in annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country

19-22

Ethics and Integrity

G4-56 Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics 23-24

G4-57 Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines 23-24

G4-58Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblow-ing mechanisms, or hotlines

23-24

Specific Standard Disclosures

Category: Economic

Aspects: Economic Performance

G4-EC1 Direct economic value generated and distributed by the organization 17

G4-EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change 18

G4-EC3 Coverage of the organization's defined benefit plan obligations 58

G4-EC4 Financial assistance received from government 17

Category: Environmental

Aspect: Materials

G4-EN1 Materials used by weight or volume 42

96

GRI G4 Index


Aspect: Energy

G4-EN3 Energy consumption within the organization 32

G4-EN5 Energy intensity 32

G4-EN6 Reduction of energy consumption 34, 36-38

G4-EN7 Reductions in energy requirements of products and services 34, 36-38

Aspect: Water

G4-EN10 Percentage and total volume of water recycled and reused 39-40

aspect: Emissions

G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) 33-34

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) 33-34

G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3) 33-34

G4-EN18 Greenhouse gas (GHG) emissions intensity 33-34

G4-EN19 Reduction of Greenhouse Gas (GHG) emissions 33-34

G4-EN20 Emissions of ozone-depleting substances (ODS) 35

G4-EN21 NOx, SOx, and other significant air emissions 35

Aspect: Effluents and Waste

G4-EN22 Total water discharge by quality and destination 39-40

G4-EN23 Total weight of waste by type and disposal method 41

G4-EN24 Total number and volume of significant spills 41

G4-EN25 Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the "Basel Convention" Annex I, II, III, and VIII, and percentage of transported waste shipped internationally 41

Aspect: Products and Services

G4-EN27 Extent of impact mitigation of environmental impacts of products and services 42~46

Aspect: Compliance

G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations 41

Aspect:Overall

G4-EN31 Total environmental protection expenditures and investments by type 38


GRI G4 Index


Aspect: Supplier Environmental Assessment

G4-EN32 Percentage of new suppliers that were screened using environmental criteria 49-51

Aspect: Environmental Grievance Mechanisms

G4-EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal griev-ance mechanisms 12

Category: Social

Sub-category: Labor Practices and Decent Work

Aspect: Employment

G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region 56-57

G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation

70-76 80-82

G4-LA3 Return to work and retention rates after parental leave, by gender 59

Aspect: Labor/Management Relations

G4-LA4 Minimum notice periods regarding operational changes, including whether these are specified in collective agreements 60

Aspect: Occupational Health and Safety

G4-LA5 Percentage of total workforce represented in formal join management-worker health and safety commit-tees that help monitor and advise on occupational health and safety programs 77-82

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender 77-82

G4-LA7 Workers with high incidence or high risk of diseases related to their occupation 77-82

Aspect: Training and Education

G4-LA9 Average hours of training per year per employee by gender, and by employee category 69

G4-LA10 Programs for skills management and life-long learning that support the continued employability of employ-ees and assist them in managing career endings 65-69

G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category 62-64

Aspect: Diversity and Equal Opportunity

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

55-56,19

Aspect: Equal Remuneration for Women and Men

G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation 58

98

GRI G4 Index


Aspect: Labor Practices Grievance Mechanisms

G4-LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms 60-61

Sub-category: Human Rights

Aspect: Child Labor

G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor 52, 59

Aspect: Forced or Compulsory Labor

G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor 52, 59

Aspect: Human Rights Grievance Mechanisms

G4-HR12 Number of grievances about human rights impacts filed, addressed , and resolved through formal griev-ance mechanisms 12

Sub-category: Society

Aspect: Local Communities

G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs 85-88

Aspect: Anti-corruption

G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified 23-24

G4-SO4 Communication and training on anti-corruption policies and procedures 23-24

G4-SO5 Confirmed incidents of corruption and actions taken 23-24

Aspect: Compliance

G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations 59

Aspect: Grievance Mechanisms for Impacts on Society

G4-SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms 12

Sub-category: Product Responsibility

Aspect: Customer Health and Safety

G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement 42-46

Aspect: Customer Privacy

G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data 12

Aspect: Compliance

G4-PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services 42-46

table of contents · 2016-10-19 · table of contents 3. environmental protection environmental...

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