ESG-Stakeholders

Identify Stakeholders:

Following the AA1000 Stakeholder Engagement Standard (SES), six categories of stakeholders are identified: employees, investors, government agencies, customers, suppliers, and local communities/National Sun Yat-sen University.

Collect Relevant Issues:

In addition to referencing international sustainability standards and guidelines (GRI, SASB, TCFD), industry norms and standards, local government policies and regulations, and industry benchmarks to collect sustainability issues, stakeholder communication channels are also used to gather stakeholders’ concerns. A total of 19 sustainability issues are summarized.

Analyze the Substantial or Potential Impact of Company Operations:

Questionnaires are sent to Sustainable Development Committee members to assess positive and negative impacts of the 19 sustainability issues for effective management of material topic impacts. Questionnaires are also sent to stakeholders to assess their level of concern for each issue.

Identify Material Topics:

Cross-compare the positive and negative substantial or potential impacts of company operations on the economy, environment, people (including human rights), and the impact on company operations. A materiality matrix is drawn based on 'substantial or potential external impacts of company operations' and 'impact on company operations.'

Positive impact: assessed by scale, scope, and likelihood

Negative impact: assessed by scale, scope, irreversibility, and likelihood

Identify Impact Scope:

Measure the impact boundary and involvement of material topics in the value chain to determine the significance of the impact.

Material Topics:

Rank based on the assessment results of 'substantial or potential external impacts of company operations' and 'impact on company operations.' Select the top 6 material topics: financial performance, R&D innovation, product quality, customer relationship management, sustainable supply chain management, and talent attraction and retention. In addition, based on domestic and international market trends, regulations, and customer requirements, information security and climate change response are included as material topics. In 2024, a total of 8 material topics are identified for priority reporting.

Information Disclosure:

Based on the identified material topics, the report’s disclosure boundary and content are established, with detailed reporting on management approaches and performance for each material topic. This responds to stakeholder expectations and ensures the report fully covers Lasertek’s actual sustainability efforts and challenges.

Continuous Feedback Collection:

Lasertek has set up a 'Stakeholder' page in the 'ESG Sustainability' section of its official website, providing stakeholders with dedicated email and other effective communication channels. If there are any questions, suggestions, complaints, or whistleblowing matters regarding material topics, stakeholders can maintain smooth and positive interaction through these channels.

• New hire retention rate: 77.78%.
• Employee turnover rate: 5.67%.
• Employee stock trust participation rate: 74.72%.

• New hire retention rate ≥ 80%.
• Employee turnover rate ≤ 20%.
• Employee stock trust participation rate ≥ 70%.

• New hire retention rate ≥ 85%.
• Employee turnover rate ≤ 15%.
• Establish employee engagement surveys.

• EPS=2.07, ROE: 10.43%, Revenue CAGR: -0.75% (disclosure scope covers 61.95% of consolidated revenue; if based on consolidated revenue, CAGR is 2.20%)

• Social engineering drills conducted quarterly (4 times), failure rate 3%.
• Company-wide information security training conducted twice. No major information security incidents affecting operations.

• Quarterly social engineering drills (4 times/year), failure rate below 10%.
• Company-wide information security training every six months (2 times/year). No major information security incidents affecting operations.

• No major information security incidents affecting operations.
• Compliant with ISO 27001 Information Security Management System.

• Established first-tier and key supplier screening mechanism.
• 100% of key material suppliers and 30% of equipment suppliers signed the Supplier Code of Conduct Commitment.

• Improve supplier management mechanism and identify key suppliers.
• 100% completion rate for key suppliers signing the Code of Conduct Commitment.