2023 was the hottest global year on record, and there were increased frequencies of extreme climate events. Climate change is now the most important risk for global enterprises, and risk management has become a major challenge for corporate survival and development. Ennostar incorporated comprehensive corporate risk management mechanisms shortly after its establishment, using top-down and bottom-up approaches to identify risk focuses for the Group, and formulated specific action plans to effectively improve Ennostar’s corporate resilience toward various risks.

 

In 2023, we officially signed the “Task Force on Climate-Related Financial Disclosures (TCFD)” and the “Science Based Targets initiative (SBTi).” We also implemented three major carbon reduction and sustainability actions: First, we installed fluorine gas local scrubbers in all factories to reduce more than 90% of fluorine gas emissions; second, we promoted energy conservation policies, replaced aged equipment, and improved energy efficiency; third, we not only self-generated green electricity in factory areas, but also actively procured green electricity in hopes of achieving 25% renewable energy usage across the Group by 2030 and net zero emissions across the Group by 2050, demonstrating our commitment to climate change mitigation and net zero progress. In 2023, the Group achieved carbon reductions of 17.9% (approximately 62,048 tons of carbon emissions). To drive sustainable growth of related suppliers, we further exerted our industrial influence in 2023 by leading all subsidiaries in hosting a supplier conference and building a low-carbon supply chain, using our sustainability experiences to lead suppliers in establishing carbon inventory capabilities. Currently, 59 suppliers have responded to our initiative and jointly pledged to achieve the sustainability goal of reducing absolute carbon emissions by 20% before 2030 to accelerate net zero emissions for our clients.

 

To improve corporate resilience and respond to all possible future challenges, the Ennostar Group actively implemented Group changes and transformations in 2023 which encompassed organizational fusion and integration, business strategies, and talent cultivation. In terms of organizational fusion and integration, the Group reviewed production capacities for all factories to maximize resource utilization and assessed various reinvestment projects to realize asset activation. In terms of business strategies, we worked to create high-value technological products, leverage the advantages of III-V compound semiconductor optoelectronic products, and build core advantages by using smart cutting-edge optoelectronic technologies to develop applications for automobiles, advanced displays, smart sensors, and emerging market products and technologies while expanding the length and breadth of our technologies, products, and services through upstream and downstream integration to provide one-stop shop services encompassing epi, chip, packaging, and module solutions for our clients, effectively opening up new horizons, expanding revenue sources, and increasing profits. Additionally, to enable sustainable development of Group talent, we established the “Talent Development Committee” at the end of 2023 to cultivate talent and activate talent-related plans so our organizations could respond more flexibly to environmental changes.

 

 

2023 was an important and critical year for strategic transformations at the Ennostar Group. Thanks to the joint efforts of all employees, our corporate governance and sustainable development achievements received multiple recognitions. In terms of corporate governance, we were ranked among the top 5% of listed companies in the Corporate Governance Evaluations, and was selected as a constituent of the FTSE4Good Emerging Index and FTSE4Good All-World Index. In terms of Group sustainability promotions, we received a number of sustainability awards, including a Corporate Sustainability Assessment AA rating and the Taiwan Corporate Sustainability Award (TCSA) “Corporate Sustainability Report Gold Award,” “Circular Economy Leadership Award,” “Workplace Wellbeing Leadership Award,” as well as two “Human Rights Leadership Awards.” Furthermore, we ensured that Group operations complied with our sustainable management goals by linking the variable remuneration of senior executives with the three ESG (environmental, social, and corporate governance) performance aspects, regularly reviewing performance and achievement of all indicators, and actively responding to public interest and expectations.Ennostar is a visionary leader in integrated optoelectronics solutions and continues to plan and implement transformations for all ESG aspects to maintain profits while working with all parties to create a better and sustainable future.