Rexon's Commitment to Sustainable Operations
Rex Wang, Chairman
Create Economic Value and Improve Sustainable Governance
Ethical corporate management is the foundation of a company, while corporate governance serves as a solid pillar of support. While creating economic value, Rexon continues to strengthen its sustainable governance. On November 6, 2024, the Board of Directors approved the “Regulations for Linking Senior Executives’ Remuneration to ESG Performance,” ensuring alignment between sustainable development and business goals and creating long-term value. In addition, the Company continues to strengthen ethical management, continues to improve the education and training for the governance level and employees, strengthens the system, improves the systematic level of management, and implements the smooth and effective operation of the complaint channel. In order to strengthen risk management, Rexon adopted the “Risk Management Practices Code,” which was approved by the Board of Directors on November 6, 2024. The Company conducts a comprehensive identification of various types of risks and reports them to the Board of Directors. In addition to focusing on operational risks, information security is also an important area of strengthening for the Company. In October 2024, the Company passed the ISO 27001 information security management system certification, which greatly improved its information security protection capabilities and provided a more secure and reliable information environment for both the Company and its stakeholders.
Diverse Talent Cultivation and Experience Transfer
Upholding the concept of “talent is the most valuable asset,” the Company continuously fosters a culture of learning and actively cultivates a diverse and inclusive working environment, enabling every employee to unleash their unique talent and value. In response to the 2025 expansion of diversified production bases in Thailand and Vietnam, the Company is committed to cultivating talent with international perspectives and cross-cultural adaptability. In 2024, guided by the two core principles of “equal learning opportunities” and “personalized training,” we promoted employees' overall development and focused on improving both professional skills and core competencies. The Company actively assists employees in their professional development, strengthens their management thinking, and cultivates their empathy and leadership. These efforts help expand their influence in the workplace, unlock their long-term development potential, and build a more competitive talent team.
Looking Ahead to 2025
In an era of global economic and environmental challenges, we recognize that corporate responsibility goes beyond creating financial value, it also involves actively addressing social and environmental needs and advancing sustainable development. The Company upholds responsible management and integrates environmental protection, social responsibility, and corporate governance into its daily operations. Through innovation and cooperation, the Company realizes a win-win situation between economic benefits and environmental protection, building a more resilient and sustainable business for the long term.
Supply Chain Sustainability Initiative Moving Towards Net Zero Emissions
In the face of climate change and international sustainability issues, we are actively working towards achieving net-zero carbon emissions by 2050. We are committed to creating a sustainable supply chain. In 2024, through the Ministry of Economic Affairs’ “Subsidies for Low-Carbon Upgrading and Transformation of the Manufacturing Industry under Big Leads Small,” participating suppliers were expected to reduce carbon emissions by 742 metric tons/CO2 and generate green energy equivalent to 707 metric tons/CO2. These efforts represented 8.6% of the total carbon reduction target, demonstrating concrete results from our carbon reduction actions. In order to raise the sustainability awareness among supply chain partners, Rexon actively cooperated partners who share the same beliefs and held an expanded supplier conference on November 18, 2024 to promote its sustainability initiative and set a goal of increasing the number of suppliers disclosing the Scope 1 and Scope 2 carbon emissions by 30% annually. Through collaboration with suppliers, Rexon Industrial hopes to foster a comprehensive carbon inventory of the supply chain and accelerate the transformation of the supply chain to jointly move towards a net-zero future.
Building a Better Society by Connecting Plants and Local Communities
Adhering to the concept of “local engagement”, we promote and advocate “good neighborliness,” “community care,” and “social prosperity.” Through diverse charity events, we invite employees to participate and help integrate care into everyday life. By taking action to bring warmth and positive impact to the community, we aim to turn every act of kindness into a force for change. We are deeply grateful to everyone at Rexon for their unwavering belief. With integrity and ethics, we strive to lay a solid foundation of trust and social good. On November 6, 2024, the Board of Directors resolved to donate funds to establish the “Taichung City Rexon Charity Foundation.” With a mission to “promote charity activities and give back to society,” the Foundation is committed to social welfare activities such as charitable education scholarships, donations to disadvantaged groups, and memberships to emergency relief programs. Through concrete actions, we aim to create a positive impact on society and build a warmer, more inclusive future together.
2024 REXON SUSTAINABLE RESULTS
2024 Rexon Sustainability Actions _
Towards a better environment for shared prosperity, harmony, and sustainability, and working together to create a brighter future for society and the planet.
Environmental
Environmental Aspect
Rexon Industrial upholds the environmental policy of "energy innovation, benchmark learning, performance evaluation, quantitative review, water and electricity consumption, smart management, carbon footprint verification, and environmental sustainability" and is dedicated to establishing specific green sustainability goals.
Reduction of approximately159 kgCo2e.
Electricity savings of approximately 26,800 kWh sheets per year
Electricity savings of 307,476 kWh
Dust collection efficiency of 85%
The air quality index (AQI) reduces to 90μg/m
Newlow-carbonproducts.
In response to the sustainability trend of transitioning from fossil fuels to electricity, we are actively developing new low-carbon products.
- Developing a power supply system for logistics and agricultural robots
- Launching brushless motors to replace conventional engine-driven electric garden tools
Emissions reduction of 8.6%
ISO 14064-1
Social
Social Aspect
Rexon Industrial is committed to local development, executing initiatives from four perspectives: advocating for mutual neighborhood benefits, community care, and social prosperity. Through diverse public welfare activities and participation in various projects, we strive to contribute to the balanced and positive development of society.
Total of education and training courses14,715 hours
Occupational Safety and Health Performance Award
Scholarships of NT$120,000
Total of Suppliers signed164
A total of 164 suppliers signed the “Supplier Code of Conduct” in 2024.
Major occupational safety incidents0
The Company has implemented occupational safety and health management, and no major occupational safety incidents occurred during the year. The Company held 4 Occupational Safety Committee meetings, 2 promotional sessions at monthly meetings, 12 physical courses, and 33 online courses during the year.
Governance
Governance & Economic Aspects
Our competitiveness is built on people-oriented values. We plan various educational programs to foster a culture of shared learning and sustainable thinking. Additionally, we propose innovative product concepts to enhance product value.
The Company's corporate governance evaluation ranking21%-35%
Representing an 18% increase compared to the previous year
The attendance rate of the directors was 100%
Category 1Gold Award
The 2023 Sustainability Report won the Taiwan Corporate Sustainability Award (TCSA) - Traditional Manufacturing - Category 1 Gold Award
ISO27001
Obtained ISO27001 information security management system certification.
The United Nations Sustainable Development Goals (SDGs)
Facing the severe challenges brought by global climate change to the environment and sustainable development, Rexon actively practices the United Nations Sustainable Development Goals (SDGs) with a focus on five key aspects: "innovation, green practices, talent development, effective governance, and care." Led by the Sustainable Development Committee, the company integrates resources and efforts across departments to embed SDGs into its organizational culture and daily operations. It continually strives to enhance opportunities for development in the three dimensions of environment, society, and governance. Through collaboration with stakeholders throughout the Rexon industry value chain, the company aims to achieve mutual prosperity, goodness, and shared benefits, co-creating a sustainable future.
BETTER FOR
PROSPERITY, GOOD, SHARING
Towards a better environment for shared prosperity, harmony, and sustainability, and working together to create a brighter future for society and the planet. _
Rexon Industrial places strong emphasis on the rights and interests of its stakeholders. While pursuing business growth and profits, the Company also remains mindful of the long-term impact of environmental protection, social responsibility, and corporate governance on the company, and is committed to improving both economic efficiency and sustainability. To strengthen corporate sustainable operation, Rexon’s Board of Directors resolved in November 2023 to formally establish the “Sustainable Development Committee” and adopt its charter. The Committee is responsible for assisting the Board of Directors in supervising and promoting ethical management, sustainable operation, sustainable environment, talent management, employee care, friendly workplace, community care, value chain management, as well as the formulation and implementation of sustainable development policies. With a systematic governance structure, Rexon continues to strengthen its sustainable management strategy to ensure that social and environmental responsibilities are taken into account during its development and to realize its core value of sustainable development.
Sustainable Governance Structure
Sustainability Committee Structure
The “Sustainability Committee” serves as the Company’s highest-level governance body dedicated to sustainability. It is responsible for supervision and decision-making. The Committee consists of 6 members, including the Chairman, 2 directors, and 3 independent directors. The Chief Sustainability Officer serves as its convener. The Committee aims to ensure professionalism and independence in sustainability-related governance decision-making.
Coordination and Planning Tier
The “Sustainability Office,” led by the Chief Sustainability Officer, is responsible for assisting in the planning and execution of sustainable development strategies. Its responsibilities are as follows:
- Identify the sustainability issues that need attention and formulate corresponding action plans.
- Develop a continuous improvement plan by managing and tracking the performance of sustainability issues from all aspects.
- Assist in facilitating communication, coordination, and operation integration of relevant matters among all promotion centers.
- Responsible for meeting-related affairs of the Sustainability Committee and reporting implementation results and work plans to the Committee.
- Design the framework and prepare the annual Sustainability Report.
Execution and Promotion Tier
(1) Rexon’s Sustainability Operations Committee (ESG Operations Committee)
The Company’s Chief Sustainability Officer serves as the convener, with nine Vice Presidents as committee members. A dedicated staff unit, the “Sustainability Office,” is responsible for promoting CSR-related initiatives and management. In 2024, a total of 11 regular meetings were held to review sustainability management goals and the implementation status of related policies. The meetings were attended by the Chairman, President, and Vice Presidents from various units. Reports presented during these meetings covered climate change management strategies, sustainability action plans, and goal achievement status. The Sustainability Office reports to the Sustainability Committee twice a year to ensure the effective implementation of policies.
(2) Six Promotion Task Forces
Six Promotion Task Forces were established under the “ESG Operations Committee,” each led by a Vice President from relevant unit. These task forces cover professional areas such as accounting, sales, procurement, manufacturing, R&D, corporate governance, and human resources. Unit supervisors participate in the ESG project and provide cross-departmental resources. They stay informed about global sustainability trends, conduct in-depth analysis of governance, environmental, and social issues, and integrate them with core operations, product innovation, and services. The office sets strategic directions and formulates project promotion plans for sustainable development.
Sustainable Governance Implementation Unit
Duty and Function
SustainableOffice
Integration of carbon issues and carbon management in the Sustainability Report
CorporateGovernance Group
Risk management, integrity in operations, corporate governance, environmental protection, occupational health and safety policies, and implementation plans
Supply ChainManagement Group
Advocacy, sharing, and mentoring approach to establish stable cooperative relationships with suppliers in achieving ESG goals
EnvironmentalSustainability Group
Adopting the concept of resource sustainability, reviewing and assessing process operations and implementing a circular economy approach, establishing an energy management system.
SustainableProducts Group
Applying core technologies, fostering innovation, and enhancing the resilience of human life by identifying sustainable products and services with future value
CustomerService Group
Customer-centric approach, commitment to quality, and joint dedication to sustainability, embodying mutual prosperity and sharing
Friendly Workplace and Social Prosperity Group
Talent cultivation, fostering ESG DNA through education, and engaging in volunteerism, emphasizing community engagement and delivering social value.
Sustainability Committee Operations
Communication plan
Communication mechanism
Communication frequency
Communication plan
FSC’s Sustainable Development Roadmap Planning
Communication mechanism
The Sustainability Office reports to the Board of Directors on an annual basis
- Planning and verification schedules for Sustainability Reports prepared by Rexon and its subsidiaries
- Planning and verification schedules for GHG inventory conducted by Rexon and its subsidiaries
Communication frequency
Once a year
Communication plan
Materiality Analysis Results
Communication mechanism
An annual materiality analysis is conducted to identify material topics that serve as the guidelines for compiling the Sustainability Report
Communication frequency
Once a year
Communication plan
The results of the current year’s implementation plan are reported during the development of the following year’s plan
Communication mechanism
The Sustainability Committee meets every six months to receive reports from the Sustainability Office on the implementation results of the year’s sustainability performance and the implementation plan for the following year. The Committee also reports to the Board of Directors.
Communication frequency
Twice a year
Internal Audit Organization
To ensure stakeholder identification aligns closely with the spirit of the GRI Standards (2021) latest version, Rexon Industries adopts the GRI's updated definition of stakeholders as "individuals or groups whose rights may be impacted (influenced) by the organization's activities." During the materiality assessment meetings, the company evaluates each sustainability issue from Rexon's perspective and considers individuals or groups that may be affected by the company's business activities, using the degree of impact as a reference for stakeholder identification. The main stakeholders identified for the current year, in order, are: shareholders/investors, government authorities, customers, business partners (suppliers/contractors/outsource vendors), and employees, totaling five categories.
Relationship
Significance to the Company
Topics of Concern
Communication Channels and Frequency
Actual Communication Results in 2024
Relationship
Shareholders / investors
Significance to the Company
Shareholders and investors' support and evaluation have a significant impact on Rexon's operations and stock price. Therefore, having a comprehensive ESG framework and transparent disclosure can enhance investor confidence and increase the company's sustainable value and profitability foundation.
Topics of Concern
- Financial performance
- Risk management
- Innovation management and sustainable manufacturing
- Human resource development
Communication Channels and Frequency
Annual shareholders' meeting (annual)
Investor conference (semiannual)
Stakeholder questionnaire on official website (instant)
Updates on Market Observation Post System (instant)
Telephone, email (temp)
Actual Communication Results in 2023
- One shareholders’ meeting
- Two investor conferences were held to communicate market conditions, future trends, growth strategies, and profitability with shareholders/investors
Relationship
Employee
Significance to the Company
Employees are an important asset and driving force for Rexon. We respect and care for our employees, ensuring that they are happy in their work and can unleash their full potential in tandem with the company's sustainable business operations.
Topics of Concern
- Occupational health and safety
- Product health and safety
- Financial performance
- Risk management
- Talent Cultivation and Retention
Communication Channels and Frequency
Monthly employee meeting (monthly)
Labor-management meeting (quarterly)
Welfare Committee meeting (quarterly)
Labor union meeting (yearly)
Employee education and training (irregular)
Employee evaluation (monthly)
Manager performance interview(yearly)
Gender Equality Committee (quarterly)
Actual Communication Results in 2023
- 12 monthly employee meetings
- 4 labor-management meetings
- 609 education and training classes, a total of 14,715 hours and a total expense of NT$3,962,429
- Subsidies to 1,722 employees for their dinner parties/trips to a total amount of NT$1,820,605
- Subsidies to 8 employee clubs, NT$270,000 for club activities
- 682 employees receiving free health checkup with subsidies of NT$ 376,904
- Scholarship to 267 children of employees, totaling NT$280,876
- Organized one corporate hiking activity, one hiking and mountain cleaning activity, and one employee family day event, with a total amount of NT$1,000,000.
- Held 2 Gender Equality Committee meetings
Relationship
Customer
Significance to the Company
Customers are the foundation of the company's sustainable development. Rexon strives to meet high standards of quality, environmental protection, and service, establishing strong and reliable customer relationships, creating high added value, and ensuring long-term customer satisfaction. This enables mutual growth and prosperity between the company and its customers.
Topics of Concern
- Occupational health and safety
- Customer relationship management
- Product health and safety
- Risk management
- Research and Development (R&D) and innovation
- Climate change management
Communication Channels and Frequency
Depending on each customer’s needs and project progress (as needed)
Email/Telephone contact (real-time)Telephone/video conference (quarterly)
Customer visits (quarterly)
Participation in large international industrial exhibitions (annually)
Customer satisfaction survey (annual)
Actual Communication Results in 2023
- In order to understand the new business market and develop potential customers, the Company consistently participates in the following large international exhibitions:
(1) Ebike: TaiSPO, Eurobike
(2) Drones: XPONENTIAL USA, Japan Drone, and Commercial UAV-USA - Customer satisfaction: 82.3 points for the tooling business; 83 points for the fitness machine business
Relationship
Business partners
(suppliers / contractors / outsourcers)
Significance to the Company
Stable and long-term cooperation with business partners is strong support for the quality and production capacity of Rexon’s products. Mutual trust and collaboration with business partners form the foundation for sustainable business operations.
Topics of Concern
- Occupational health and safety
- Supply chain ESG management
- Customer relationship management
- Risk managemen
- Research and Development (R&D) and innovation
- Climate Change Managemen
Communication Channels and Frequency
R-Team Supplier Lean Project Results Sharing Meeting (twice a year)
Supplier Conference and Sustainability Initiative Meeting (once a year)
Supplier evaluation (monthly)
On-site visit to suppliers (irregular)
Telephone, email (temp)
Actual Communication Results in 2023
- In 2024, a total of 337suppliers underwent evaluation for delivery quality, achieving an A-level rating rate of 93%. (Number of suppliers in each level: A-level: 314; B-level: 21; C-level: 1; D-level: 1)
- 5 new suppliers were evaluated in 2024; the pass rate of the suppliers evaluated based on the environmental and social criteria was 100%
- Two R-Team Supplier Lean Project Results Sharing Meetings were held on May 7 and December 27, 2024
- A total of 93 suppliers participated in the 2024 Supplier Conference and Sustainability Initiative Meeting.
Relationship
Government / competent authorities
Significance to the Company
Government competent authorities are the authorities responsible for setting the highest legal standards in terms of economy, environment, society, and other aspects. Rexon adheres to these regulations as the fundamental principles of its operations.
Topics of Concern
- Financial performance
- Climate change management
Communication Channels and Frequency
Updates on Market Observation Post System (instant)
Official website of the company (irregular)
Official documents and declaration materials (irregular)
Seminar for promotion (irregular)
Telephone, email (temp)
Actual Communication Results in 2023
- All directors completed continuing education in accordance with the regulations
- Chinese and English versions of the annual financial report audited by CPAs were disclosed within two months after the end of the fiscal year
- The changes in the shareholdings of insiders for the previous month were uploaded to the MOPS by the 10th of each month (inclusive)
- Risk management policies and procedures approved by the Board of Directors
Analysis of Material Topics
Rexon Industrial is guided by international sustainability standards and norms (SASB, TCFD, CDP), international sustainability ratings (MSCI, DJSI), the United Nations Sustainable Development Goals (SDGs), the Regulations Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, and industrial trends. Through interaction and communication with its stakeholders, including the evaluation of peers’ sustainability practices, Rexon Industrial consolidated 11 sustainability issues. In order to prioritize materiality of sustainability issues and in alignment with the definition of materiality in the GRI Standards (2021) GRI 3, senior executives, guided by the Double Materiality principle, assessed both the positive and negative impacts of the above 11 sustainability issues on corporate operations, as well as on the external economy, environment, and society (including human rights). The assessment also considered the significance of impact events to determine an impact score. A materiality matrix was then developed based on two dimensions: “Economic, Environmental, and Social Positive and Negative Impact on Operations” and the “Significance of Impact Events.” With reference to the opinions of various external stakeholders, the Company identified 9 material topics: innovative and research and development, financial performance, customer relationship management, product health and safety, supply chain sustainability management, talent cultivation and retention, risk management, occupational safety and health, and climate change management. Compared to those for 2023, economic performance and risk management are newly added topics. The analysis results of the aforementioned material topics were discussed and resolved by the ESG Committee on October 8, 2024, and subsequently approved by the Board of Directors on November 6, 2024. These topics were the focus of disclosure in this Report, along with proposed strategies and performance outcomes.
2024 Material Topic Matrix
Matrix of Operational
Matrix of Operational Impact Severity vs. Likelihood of Occurrence
Matrix of Negative
Matrix of Negative Operational Impact Severity and Significance of Occurrence
As the assessment result shows, after the comprehensive evaluation of the three major aspects (environment, society, economy) based on the current strategies and management policies, the “financial performance” has the highest significance in both the positive and negative impacts, and continuous improvement will increase its comprehensive influence. “Innovation and research and development” ranks second in terms of positive and negative impacts, indicating that only by continuously promoting technological innovation can we create concrete economic value and competitive advantages.
In terms of governance, “risk management” has become a key issue in ensuring the Company’s sound operation, sustainable development, and enhanced corporate governance. The assessment of positive and negative impacts also indicates that the Company proactively addresses potentialrisks and reinforces its sustainability commitment to stakeholders through a robust mechanism.
Nine material topics were identified in 2024, including “financial performance,” “innovative and research and development,” “customer relationship management,” “product health and safety,” “supply chain sustainable management,” “talent cultivation and retention,” “risk management,” “occupational safety and health,” and “climate change management.” “Financial performance” and “risk management” were two new material topics compared to 2023. As for the 2023 material topic of “employee rights and welfare,” the significance of its negative impact has significantly decreased as the Company has continuously improved its welfare policies in recent years.
Year
Material Topics
Year
2022
Material Topics
- Research and Development (R&D) and innovation
- Product health and safety
- Supply chain ESG management
- Customer relationship management
- Employee rights and welfare
- Talent cultivation and retention
- Climate change management
- Occupational health and safety
Year
2023
Material Topics
- Financial performance
- Research and Development (R&D) and innovation
- Customer relationship management
- Product health and safety
- Sustainable Supply Chain Management
- Talent cultivation and retention
- Risk management
- Occupational health and safety
- Climate change management
Management of Material Topics
Material
Topics
Policy
Commitment
Alignment with Sustainability Criteria
Impact description
Description of positive impacts Description of negative benefits
Stakeholder Impact
Shareholders and Investors Partners Customer Employee Government Agencies
Corresponding Sections and
Alignment with SDGs
Material Topics
Financial performance
Policy Commitment
With sustainable development as our goal, we uphold the business philosophy of “Integrity, Stability, and Growth” to produce products that customers are happy to buy, maintain our leadership in the industry, and contribute to economic development.
Alignment with Sustainability Criteria
GRI 201 Financial performance
201-1 Direct Economic Value Generated and Distributed by the Organization
201-4 Financial Assistance Received from the Government
GRI 207 Tax
207-1 Tax Policy
207-2 Tax Governance, Controls, and Risk Management
207-3 Stakeholder Engagement and Management of Tax-related Issues
Impact description
Description of positive impacts
Actual positive:
- Seize opportunities in sustainable product trends, build a low-carbon material database, and regularly promote it to customers to increase sales opportunities and improve operational performance.
- In response to geopolitical risks, continue to expand and diversify production bases to reduce operational risks and improve operational performance.
Description of negative benefits
Actual negative impacts:
- In the face of carbon tax policies in the U.S. and the E.U., insufficient knowledge of low-carbon materials may lead to higher OEM costs, thereby undermining operational competitiveness.
- Under uncertainties brought about by geopolitical tension, failing to develop response strategies and adapt to trend changes in a timely manner may result in missed business opportunities and have negative impacts on competitiveness
Stakeholder Impact
Shareholders and Investors
Partners
Customer
Employee
Government Agencies
Corresponding Sections and Alignment with SDGs
2.2 Operational Performance
Material Topics
Research and Development (R&D) and innovation
Policy Commitment
R&D and innovation in products, technologies, and business models are not only the source of our competitiveness but also our core value. The development of sustainable products that save energy and reduce carbon emissions is a key future trend
Alignment with Sustainability Criteria
DJSI-Leisure Products and Consumer Electronics: Innovation Management
DJSI-Machinery and Electrical Equipment: Innovation Management
Impact description
Description of positive impacts
Actual positive:
The dual focus on technology and sustainability innovation strengthens intellectual assets and brand value.
Description of negative benefits
Potential negative:
Stagnation in innovation may result in a decline in market share and operating revenue
Stakeholder Impact
Shareholders and Investors
Partners
Customer
Employee
Government Agencies
Corresponding Sections and Alignment with SDGs
5.2 Research and Development / Manufacturing
Material Topics
Customer relationship management
Policy Commitment
We will continue to pursue technological innovation to deliver top-quality products and services and to become the “best partner for our customers
Alignment with Sustainability Criteria
GRI 418 Customer Privacy
418-1 Complaints Substantiated for Invasion of Customer Privacy or Loss of Customer Data
Impact description
Description of positive impacts
Actual positive:
- Increase the added value of products through innovation and sustainable product development, and help customers maintain their competitive advantages in the market.
- Introduce the customer relationship management (CRM) system to build closer relationship with customers, ensure effective understanding and fulfillment of their needs, improve service quality, and enhance customer satisfaction.
Description of negative benefits
Potential negative:
- Failure to keep up with the trend or to increase the added value of products may cause the Company to be easily eliminated by the market, resulting in a decline in orders
- If the customer relationship management (CRM) system is not implemented, it could lead to errors or loss of customer information. This would not only hinder relationship maintenance and service quality but also make it difficult to effectively track interaction records, potentially resulting in lost business and cooperation opportunities.
Stakeholder Impact
Shareholders and Investors
Partners
Customer
Employee
Government Agencies
Corresponding Sections and Alignment with SDGs
4.3 Customer relationship management
Material Topics
Product health and safety
Policy Commitment
The Company is primarily engaged in OEM and ODM, aiming to meet customer needs and deliver high-quality products through comprehensive vertical integration
Alignment with Sustainability Criteria
GRI 416 Customer Health and Safety
416-1 Assessment of the Impacts of Products and Services on Health and Safety
416-2 Incidents of Non-compliance with Health and Safety Regulations for Products and Service
417 Marketing and Labeling
417-1 Requirements for Product and Service Information and Labeling
417-2 Incidents of Non-compliance with Regulations for Product and Service Information and Labeling
417-3 Incidents of Non-compliance with Marketing and Labeling Regulations
SASB-Electrical Equipment Manufacturing: Product Safety
SASB-Toys and Sporting Goods: Chemical and Safety Hazards of Products
MSCI-Leisure Products: Product Safety and Quality
Impact description
Description of positive impacts
Actual positive:
Product health and safety are one of the core management items. A risk prevention mindset is introduced at the design stage to ensure quality control throughout the entire process. By strictly adhering to relevant health and safety standards, we ensure the safe use of our products by consumers. This effectively enhances the credibility of our brand and OEM services, further strengthening customer partnerships and our market reputation.
Description of negative benefits
Potential negative:
Deficiencies in product safety pose various risks, including reduced production efficiency, lower customer satisfaction, processing costs of recalls, returns, and reworks. These issues may further result in reputation losses and operational risks, challenging the company’s overall competitiveness and sustainable development
Stakeholder Impact
Shareholders and Investors
Partners
Customer
Employee
Government Agencies
Corresponding Sections and Alignment with SDGs
3.4 Product Quality and Responsibility
Material Topics
Sustainable Supply Chain Management
Policy Commitment
Deepen the sustainability awareness among supply chain partners, actively promote sustainability initiatives, accelerate supply chain transformation, and work together toward a net-zero future
Alignment with Sustainability Criteria
GRI 204: Procurement Practices
204-1 Percentage of Procurement Expenditure from Local Suppliers
GRI 308: Supplier Environmental Assessment
308-1 Use of Environmental Standards to Screen New Suppliers
GRI 414 Supplier Social Assessment
414-1 Use of Social Standards to Screen New Suppliers
Impact description
Description of positive impacts
Actual positive:
Establishing a sustainable supply chain enhances overall operational performance and adaptability, fosters common prosperity across the supply chain, and strengthens supply resilience and sustainable competitiveness.
Description of negative benefits
Potential negative:
If the supply chain lacks sustainable management, it may lead to poor management, environmental violations, labor disputes, or regulatory non-compliance. These issues can damage corporate reputation and compromise delivery stability, leading to loss of orders and risk of business disruption.
Stakeholder Impact
Shareholders and Investors
Partners
Customer
Employee
Government Agencies
Corresponding Sections and Alignment with SDGs
3.3 Supply Chain Collaboration
Material Topics
Talent Cultivation and Retention
Policy Commitment
Rexon Industrial values talent development, continuously fosters a culture of learning and actively cultivates a diverse and inclusive working environment, enabling every employee to unleash their unique talent and value.
Alignment with Sustainability Criteria
GRI 201 Financial performance
201-3 Obligations for Pension Payments and Other Retirement Plan
GRI 202 Market Presence
202-1 Ratio of Standard Remuneration for Workers in Different Gender to Minimum Wage in Local Markets
202-2 Proportion of Local Residents Employed in Senior Management Positions
GRI 401 Employment and Labor Relations
401-1 New Hires and Resignations
401-2 Benefits Provided to Full-time Employees (excluding Temporary or Part-time Employees)
401-3 Maternity Leave
GRI 404 Training and Education
404-1 Average Hours of Training per Employee per Year
Impact description
Description of positive impacts
Actual positive:
Through strengthened talent pool training and a mentorship-based case study learning model, the Company can adapt more flexibly to future challenges and ensure long-term competitiveness
Description of negative benefits
Potential negative:
Failure to achieve talent cultivation and retention goals due to insufficient resources or ineffective execution may result in talent loss and hinder long-term development.
Stakeholder Impact
Shareholders and Investors
Partners
Customer
Employee
Government Agencies
Corresponding Sections and Alignment with SDGs
5.2 Employment and Retention
Material Topics
Risk management
Policy Commitment
Actively identify risks, develop response measures, and monitor risks to reduce the impact and influence of both internal and external risks
Alignment with Sustainability Criteria
General Disclosures
Impact description
Description of positive impacts
Actual positive:
Each year, the Company implements a regular comprehensive risk management procedure to systematically assess potential risks and develop response strategies and mitigation plans for various risks to effectively strengthen corporate resilience and risk control capabilities.
Description of negative benefits
Potential negative:
Although no actual negative impacts occurred in 2024, potential risks remain. These include facility damage and personnel injury or fatalities caused by natural disasters and wars, system disruptions and data breaches due to information security incidents, and supply chain disruption and labor shortages that could affect production and delivery.
Stakeholder Impact
Shareholders and Investors
Partners
Customer
Employee
Government Agencies
Corresponding Sections and Alignment with SDGs
2.4 Risk management
Material Topics
Occupational health and safety
Policy Commitment
The occupational health and safety of employees is the foundation of sustainable development. A safe working environment is provided to enhance the safety literacy, safety awareness, and operating skills of employees. Prevent safety and health risks during business operations and safeguard employees’ health and safety in the workplace
Alignment with Sustainability Criteria
GRI 403 Occupational Health and Safety
403-1 Occupational Safety and Health Management System
403-2 Hazard Identification, Risk Assessment, and Incident Investigation
403-3 Occupational Health Services
403-4 Worker Participation, Consultation, and Communication on Occupational Safety and Health
403-5 Training for Occupational Safety and Health
403-6 Worker Health Promotion
403-8 Scope of Workers Covered by the Occupational Safety and Health Management System
403-9 Occupational Injuries
403-10 Occupational Diseases
Impact description
Description of positive impacts
Actual positive:
By continuously optimizing the environmental safety and health management system, we proactively respond to new regulations and industry standards, effectively predict and reduce occupational injury risk, and create a safer working environment. This not only protects employee health but also enhances their satisfaction and work engagement, thereby driving overall productivity growth.
Description of negative benefits
Potential negative:
A lack of effective workplace health and safety management may expose employees to potential risks and increase the likelihood of occupational accidents, thereby affecting work stability and the company’s overall image.
Stakeholder Impact
Shareholders and Investors
Partners
Customer
Employee
Government Agencies
Corresponding Sections and Alignment with SDGs
3.5 Workplace Health and Safety
Material Topics
Climate Change Management
Policy Commitment
Assess risks and opportunities brought by climate changes and develop response strategies. Lower energy consumption and usage costs, enhance energy management intensity, continuously promote energy conservation and carbon reduction, and pursue business opportunities for sustainable products.
Alignment with Sustainability Criteria
GRI Energy 302
302-1 Internal Energy Consumption
302-3 Energy Intensity
3302-4 Reduction of Energy Consumption
GRI Emissions 305
305-1 Direct (Scope 1) Greenhouse Gas Emissions
305-2 Energy Indirect (Scope 2) Greenhouse Gas Emissions
305-3 Other Indirect (Scope 3) Greenhouse Gas Emissions
305-4 Greenhouse Gas Emissions Intensity
305-5 Greenhouse Gas Emissions Reduction
TCFD Climate-Related Financial Disclosures
Stock Exchange Dedicated Chapter on Climate-Related Information Disclosure
Impact description
Description of positive impacts
Actual positive:
- We increase the proportion of green energy usage, reduce carbon footprint, promote energy self-sufficiency, improve corporate energy efficiency, reduce electricity consumption, and reduce carbon emissions. These initiatives support our commitment to ESG (environmental, social, and governance) sustainability and contribute to global environmental protection and sustainable use of resources.
- When actively implementing carbon reduction measures, the Company can directly reduce the carbon footprint of products, but needs to make capital investment accordingly
Description of negative benefits
Actual negative impacts:
In 2024, the total greenhouse gas emissions of Rexon amounted to 57,685.32 metric tons of CO₂e per year, contributing to climate change and impacting the local community's environment.
Potential negative:
Rexon can not effectively reduce electricity consumption, carbon emissions, and environmental impacts, without increasing the use of green energy in the factory area and adopting smart power consumption solutions.
Stakeholder Impact
Shareholders and Investors
Partners
Customer
Employee
Government Agencies
Corresponding Sections and Alignment with SDGs
4.1 Rexon's Net Zero Blueprints and Actions (TCFD)
Corporate Sustainability Development Survey
To achieve more effective communication with stakeholders who care about our company,we sincerely invite you to take the time to complete this questionnaire.
Your participation will enable us to gain a better understanding of the issues that stakeholders are concerned about and enable us to respond actively.