Contents
About the ESG Report
A Word from the Management1
1.1

Overview
Delta Electronics Organizational
Structure

02
04
10
13

1.2

Sustainable Business Development

14

1.3

Enhancing Brand Value

17

2

Sustainable Management
Sustainable Management

20

2.2

Policies and Promotions

23

2.3

Responding to Global Sustainable
Development

25

Communication with
Stakeholders

29

3.1

Stakeholder Communication andResponse30

3.2

Materiality Assessment

32

Corporate Governance

38

5.7

Environmental Management

109

6

Employee Relations andSocial Participation

110

4.1

Key Performance Indicators

39

4.2

Enhancing the Board of Directors'
Functions41
6.1

Key Performance Indicators

111

4.3

Innovation

46

6.2

Talent Attraction

113

4.4

Transcending Customer Expectations

51

6.3

Talent Learning Development

126

4.5

Supplier Sustainability Management

55

6.4

Human Rights Protection

133

4.6

Information System Safety andManagement

62

6.5

LOHAS Workplace

141

4.7

Comprehensive Information
Disclosure and Shareholder
Communication

65

6.6

Social Engagement

145

6.7

Occupational Safety and Health

153

4.8

Emerging Risks – Response to the
COVID-19 Epidemic

66

7

Appendix

159

5

Environmental Protection
and Energy Savings

70

7.1

Screening Criteria of Reporting
Boundaries

160

7.2

Environmental Data

161

7.3

Social Data

164

5.1

Key Performance Indicators

71

7.4

Climate Change and Carbon
Management73

Index of GRI Standards Indicators
and SASB Index

166

5.2

7.5

Energy Management

85

Summary of Information Assured(ISAE 3000)

180

5.3
5.4

Water Resource Management

94

7.6

186

5.5

Waste Management

99

TCFD Practices Across the FourCore Elements

5.6

Green Products

102

7.7

External Assurance Statement andReport

190

19

2.1

3

4

About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

About the ESG Report

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendixa science-based emissions reduction target, reporting climate change information inmainstream reports as a fiduciary duty, and conducting responsible corporate engagement
in climate policy. We have also established science-based targets (SBTs) and adopted

Since it was established, Delta has combined business operations and sustainable

the Task Force on Climate-related Financial Disclosures (TCFD) framework in the annual

development in line with the business mission "To provide innovative, clean and energy-

report to honor our international initiative commitments. In 2018, Delta joined the EV100

efficient solutions for a better tomorrow". For Delta, the pursuit of sustainability is theinitiative and in 2021 we committed to reaching RE100 by 2030 to stay up-to-date with

inevitable path to growth. This has shaped the Company’s corporate culture and is ainternational trends. We have clearly set out Delta's blueprint for a future sustainable

constant reminder to our diligent employees of the importance of sustainability. The

strategy. All of this has enabled the Company to adjust our global business organization

year 2020 was a crucial year for Delta as we made preparations to celebrate our 50thin advance and to actively seize business opportunities.

anniversary. We have conscientiously achieved our SBT (science-based target) goals
and gained experience from it. We are also actively moving towards the long-term goal of

When the SBT methodology was announced in 2017, Delta started research and analysis

RE100 --100% renewable electricity by 2030, in line with international trends, and haveand decided to set a goal of reducing carbon intensity by 56.6% by 2025 with 2014 as theclarified the blueprint of Delta's sustainable strategy. Based on our long-term belief inbase year, and passed the SBTi compliance review by the end of the year. At the sameand insistence on sustainability, this report, prepared with the title "ESG Report" for thetime, Delta gradually moved towards the SBT targets by actively implementing the three

first time, records our efforts and achievements in corporate governance, environmental

main strategies of self-generation of solar energy, energy-saving projects, and purchaseprotection, energy savings, employee relations, and social participation throughout 2020.

of renewable energy certificates, as well as others. In 2020, we reached a carbon intensity
reduction of more than 55%, far exceeding the annual target. The renewable energy

In recent years, as climate change gradually impacted our society, economy, and daily

contribution in our operations has also reached about 45% of the electricity consumption

lives, the United Nations introduced its Sustainable Development Goals (SDGs) inof global bases, establishing Delta's confidence to further meet the challenges of RE100.

2015 to guide the world to collectively strive towards sustainability. With the response
and promotion of global stakeholders, including institutional investors, customers,

On Delta’s 50th anniversary in 2021, Delta announced that it will join the global renewable

governments, rating agencies, and the media, "sustainability" has also become a businessenergy initiative RE100, promising that all operations around the world will achieve theperformance indicator on the ground and even a national goal rather than an issue on theoverall goal of 100% use of renewable electricity and carbon neutrality by 2030. Delta is

table. Since the beginning of 2020, COVID-19 has raged around the world, reshaping thethe first high-tech company in Taiwan to target achieving the RE100 goal by 2030. Delta

global business landscape and corporate thinking, and accelerating enterprises' businesswill develop plans to overcome the challenges of different countries' development oforganization and practices in all aspects of sustainability.

renewable energy supporting regulations, focusing on our own energy conservation, theuse of self-generated solar energy as well as self-contained power plants. At the same

The United Nations Climate Change Conference in Paris (COP 21 Paris) at the end

time, we will evaluate the transaction maturity of the local green power markets, andof 2015 was a turning point for Delta in keeping abreast of international sustainability

consider Power Purchase Agreements (PPA) and Renewable Energy Certificates (REC) toinitiatives. All of Delta's management team members actively responded to this grandachieve our RE100 target.

event by participating in side events and holding exhibitions. Their experience sharing inenergy conservation and carbon reduction with global enterprises was widely acclaimed.

Delta's efforts to keep up with international trends have also advanced the company's

In 2020, Delta signed the "We Mean Business" initiative as a commitment to adopting

global business organization and enhanced its ability to actively seize business2

About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

opportunities. Our valued customers' participation in the ratings of international rating

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

ESG Report Scope and Reporting Period

agencies or international initiatives in recent years has not only allowed them to set theirown ESG goals but has also enabled us to regulate collaboration in the supply chains.
The active participation of our customers shows that few companies can disregard
sustainability trends.

Reporting
PeriodDelta also continues to participate in international ratings to examine our performancein sustainability. We review what we have done well in a positive manner and makeJanuary 1, 2020 to December 31, 2020

Scope

Delta's global corporate operations, research and development centers,
and major production sites (See Appendix): The disclosure of environmental data includes two sets of data, which at the time of disclosure
were determined based on management targets.

Main
Production
PlantsScope of the SBT pledge includes Taoyuan Plant 1, Taoyuan Plant 2,
Dongguan, Wujiang, Wuhu, Chenzhou, Delta Thailand 1, Delta Thailand
5, Delta Thailand 6, Cyntec Hsinchu, and Cyntec Huafeng.

Overall
Production
PlantsOverall production plants include Delta's main plants and the US, Brazil
and India production plants of Eltek acquired after 2015 (plants in the
United States and India).

Other

The exchange rates for currencies of different countries are based on
the posted rates of December 31, 2020.

improvements when necessary. Delta has been named Industry Leader in the overall DJSI
ratings for 3 consecutive years. The scores give recognition to Delta in the aspects ofclimate change, social participation, and employee development. We have also identified
several weaknesses and emerging issues based on the rating results, such as chemicals
management and conflict minerals management. As the management team attaches great
importance to these issues, the ESG Committee has established 10 major ESG projects
to target weaknesses. Different departments are designated to manage the projects andto formulate improvement measures accordingly. We hope to continue implementing
the concept of ESG in our global business operations through a sound management
mechanism and our employees' collective efforts.
Our corporate mission "To provide innovative, clean and energy-efficient solutions for abetter tomorrow" set by Bruce C. H. Cheng, has become part of Delta's daily operations
and has shaped each employee's DNA for the past 50 years. His foresight has continued
to guide Delta in updating our business organization early. In the face of various unknown
challenges from the climate crisis, Delta is always ready to work with our partners from all

This Report is Verified and Assured by a Third Party

sectors to support each other, assume responsibility to our stakeholders, and do our partfor sustainability!

Chief Sustainability Officer

Verification

The Company contracted SGS Taiwan to verify that this report conforms
to the GRI Standards and AA1000 Type II core standards and a high levelof scrutiny. Delta obtained SGS assurance based on SASB Standards forthe first time and the Attestation Statement is attached in the Appendix.

Assurance

The Company contracted PwC Taiwan to conduct a limited assurance
engagement to confirm that the specific key performance information isprovided in accordance with ISAE 3000. The assurance report for thisESG report is attached in the Appendix.

3

About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

The Founder
After I founded Delta 50 years ago, I would often think about the value of a company’s
existence. Although a company needs profit to grow, it is more important that a company
contribute to the country and society using its core competitiveness.
In 1971, I established Delta Electronics. We started out as a small company with 15
people supplying TV components, and then step-by-step we reached to where weare today. At that time, as Taiwan's economy was developing rapidly, and electricity
consumption increased year by year, power would run short, and at times we even had
rolling blackouts. I have always believed that energy conservation and improving energy
efficiency are more important than the construction of power plants. In addition to pursuing
growth and profit, enterprises should invest resources in the development of productsthat contribute to people’s lives and society. At one point I considered switching to a moreenergy-efficient switching power supply, but it was the quick solution. Instead, I decided
to invest in developing a lighter, thinner, shorter, and even more energy-efficient switching
power supply, and then set our business mission as “To provide innovative, clean and

Bruce Cheng, Founder and Honorary Chairman of Delta Groupenergy-efficient solutions for a better tomorrow”.
automation products, and we have developed electric vehicle power systems for more
In 1983, Delta began to officially provide switching power supply products to customers.

than a decade. In the field of integrating critical components, such as motors, drives, andBy 2000, the efficiency of all of our power supply products exceeded 90%. Delta's

DC/DC converters in the limited space of the automobile body, Delta has fully leveraged

products occupy a high market share, so improving efficiency makes a big contribution to

our capabilities in core electronics technologies, and has successfully stepped into theenergy conservation and carbon reduction worldwide. Between 2010 and 2020, Delta's

electric vehicle power system supply chains of the European and U.S. first-tier automobile

high efficiency products were estimated to have saved customers 33.5 billion kWh ofmanufacturers. As precision medicine gains more attention, Delta has also developed aelectricity, which was equivalent to reducing 17.80 million metric tons of carbon emissions.

precise and fast automated nucleic acid analysis system, which can significantly reduce
the traditional testing time from 4 hours to 1.5 hours and provide doctors with a test result

In recent years, the manufacturing industry has undergone many disruptive changes

and medication guidelines after an accurate diagnosis of the cause of disease. Since

due to the rapid advancement of science and technology. In particular, it has had a

COVID-19 has cast its shadow over the world, this product is highly suitable for first-

tremendous impact on traditional manufacturing approaches and business concepts.

line outpatient or emergency testing. In particular, the Ct value in the test report can help

Delta has also begun to develop towards offering total solutions and to diversify ourdetermine the amount of virus. In line with global standard testing methods, it assists

product lines. In terms of transportation, the current trend for vehicles is to replace

medical personnel in conducting anti-pandemic work onsite and provides a clearer basis

combustion engines with electric motors. Delta’s motor technology began from industrial

for making sound medical decisions.

4About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Industrial development today has resulted in resource depletion, natural environmental
pollution, and ecological destruction, and has begun to endanger the survival of humanbeings and other creatures. We must take seriously the environmental impact of global
warming. I recall the Taipei Weather Station registered a high temperature of 39.7 °C lastsummer—a record high in the 124 years since the station was established. The ecologicalimpact of the climate crisis continues to be witnessed all over the world. There havebeen raging wildfires engulfing coniferous forests in Siberia, giant sequoias in California,
and tropical rain forests in Brazil, burning areas unprecedented in history. All of thepredictions made by scientists about climate warming in the past seem to be coming true
one after another. We must take immediate action to prevent more climate disasters fromhappening.
On Delta’s 50th anniversary, we adopted "Influencing 50, Embracing 50" as the Company's
vision. Building on the solid foundation developed over 50 years, I hope that we continue
to innovate with our products and services, and join hands with our partners in all sectors
to stride towards the next 50 years together. For half a century, I have run the Company
on the premise of giving back to society. I hope that our employees will contribute to
the sustainable development of mankind while developing new products and solutions,since it is not just about fulfilling our social responsibility, but also about seizing business
opportunities.

5

About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

The Chairman and the CEO
Many countries and cities imposed lockdowns in 2020 as a result of the COVID-19
pandemic. The world faced severe challenges which also tested business operations.
Despite such challenges, Delta has achieved high revenue and sustainability as well as
excellent performance. Revenue in 2020 reached an all-time high and we won multiple
awards and honors in international ratings for our sustainability performance.
Delta was selected for the 5th time as an "Industry Leader" in the Dow Jones Sustainability
Indices for the Electronic Equipment, Instruments and Components Industry. Delta was
rated by CDP at the "A" leadership level in both the "climate change" and "water security"
categories, and at the leadership level in supply chain management. We were also
included in the MSCI ACWI ESG Leaders Index, Taiwan ESG Leaders Index, and others.
In China, Delta was ranked among the top 3 in the electronics industry in the 2020 Best
Corporate Social Responsibility Reputation in China, and was recognized as one of the
top 10 foreign companies in the "Blue Book of Corporate Social Responsibility (2020)"

Yancey Hai, Chairman of Delta Electronics

thpublished by the Chinese Academy of Social Sciences for the 6 consecutive year. In
Thailand, Delta received the Best Sustainability Award from the Stock Exchange of

The Company implemented internal control self-assessments this year and requested

Thailand.

business and functional units to fill out the risk assessment table (the completion rate
was 100%) and implement management measures. Delta also updated self-assessment

Delta has merged its mission statement "To provide innovative, clean and energy-efficient

documents in accordance with related internal and external audit information.

solutions for a better tomorrow" with ESG and business development strategies. We
implement our mission statement with long-term plans for the environment, society, andIn response to the risks of global warming and climate change, Delta continues to invest

governance (ESG).

in product R&D and technological innovation. The Company has established R&D Centers
across the world, and we invested a record-high 9.01% of total revenue for R&D and

In terms of governance, Delta appointed an external professional and independent firm forinnovation in 2020.

a performance evaluation of our Board of Directors in 2020 to ensure operation efficiency.
We also pay close attention to ESG ratings to continue to optimize the Company's

Delta classifies suppliers with continuous transactions into different tiers to implement

governance framework. Delta amended the Ethical Corporate Management Best

ESG management of the supply chain. We evaluate the ESG risk ratings and ESG

Practice Principles in 2020 and imposed penalties on violations of the Ethical Corporate

capability ratings and distribute a survey form for conflict minerals to complete our due

Management Best Practice Principles for the first time.

diligence investigation for conflict minerals in the supply chain. In the 2020 survey, we

6About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

provided the survey in traditional Chinese, simplified Chinese, and English, and we also

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

totaling 244,697 metric tons CO2e in reduction.

provided a Thai version for the first time to reduce potential misunderstanding caused bylanguage barriers. Delta also organized webinars to communicate directly with suppliers

In addition, Delta established a green energy team in 2020 and announced ourand help them understand Delta's expectations and the importance of ESG.

membership in the RE100, a global renewable electricity initiative, in 2021. We havepledged to achieve the goal of 100% renewable electricity and carbon neutrality by

When the COVID-19 epidemic first broke out, Delta's management team quickly

2030 for all of Delta's global locations. We are the first company in Taiwan's high-techestablished the Global Disease Prevention Command Center at the end of January 2020

manufacturing industry to commit to achieving the RE100 target by 2030, ahead of

and immediately announced the "Delta COVID-19 Disease Prevention Plan" to all ourschedule.

manufacturing plants and operations across the globe. We also created regional disease
prevention teams in Mainland China, Southeast Asia, Northeast Asia, Europe, and theDelta has set its internal carbon pricing based on a careful review of the internal andAmericas. The highest-ranking officers in the region served as the commanders of theexternal carbon cost of all global manufacturing plants and global carbon pricing trends

teams.

to internalize the economic costs of carbon emissions from operating activities. We
also planned the adoption of an internal carbon pricing system starting from 2021 andDelta actively engaged external stakeholders in real-time and effective communication.

the funds from carbon payments will be used for energy conservation projects and the

In terms of communication with investors, Delta participated in 17 external institutional

acquisition of renewable energy. It will also be used as a tool for supporting the Company's

investors' conferences and more than 510 investor interview conferences in 2020 throughdecarbonization strategy and a risk management tool as we progress toward zero carbon

video and telephone conferencing.

emissions.

In terms of the environment, Delta has always paid close attention to climate change

Improving energy efficiency is one of the most effective methods for mitigating climate

and actively participates in international initiatives. Delta signed the "We Mean Business"change. Delta embraces core competencies and implements energy saving and carbon

statement in 2015 and passed the Science Based Targets (SBTs) in 2017. We committed

emissions reduction through products, factory operations, and green buildings. In regards

to reducing our carbon intensity in 2025 by 56.6% compared to 2014.

to conserving energy through our products, Delta continuously invests in innovative R&D,
and has vigorously enhanced the energy conversion efficiency of all of our product lines

We used our solar energy infrastructure, active carbon reduction in plants, and purchaserdover the years. Between 2011 and 2020, Delta's high efficiency products saved customersof renewable energy certificates to attain our SBT targets for the 3 consecutive year

an estimated 33.5 billion kWh of electricity and reduced carbon emissions by 17.80 million

in 2020. Delta has reduced carbon intensity by more than 55% and demonstrated ourtons CO2e. These were Delta's contributions to reducing carbon emissions for the globe.

resolve. We have met aggressive management targets for reducing carbon emissions andlimiting global temperature increase to 1.5°C ahead of schedule for 2 consecutive years.

Manufacturing accounts for over 95% of Delta's electricity consumption and we arefocused on energy saving in manufacturing operations. From 2011 to 2020, Delta has

Renewable electricity accounted for 55.1% of Delta’s total electricity consumption of main

cumulatively undertaken 2,270 energy-saving projects and enhanced its focus on

production plants, and 45.7% of the electricity consumption in global operations. The use

responding to global warming through full participation of employees and voluntary carbon

of solar energy that we produced decreased carbon emissions by 17,458 metric tons CO2e

reduction.

and the purchase of renewable energy certificates reduced 227,240 metric tons CO2e,7

About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

In terms of energy conservation for green buildings, since the construction of Delta's firstgreen building at the Southern Taiwan Science Park in 2006, we have actively pledgedthat all future new Delta plants and offices shall implement green building concepts. By
2020, Delta has built and donated 28 green buildings for plants, offices, and academic
use, and 2 green data centers around the world. In 2020, Delta's global certified plants
and offices and donated green buildings collectively saved 18.48 million kWh of electricity
and reduced carbon emissions by approximately 11,685 tons CO2e.
In addition, Delta attained our target of reducing water usage intensity in plants andbuildings by 30% in 2020. For the next stage, Delta will continue to reduce water
consumption and recycle water for reuse. In terms of water conservation and waste
reduction, Delta launched 111 waste reduction measures and 80 water conservation
solutions in manufacturing plants in 2020 which reduced 7,774.9 metric tons of waste and183.6 million liters of water consumption.
Delta actively recruits key talents from universities across the globe to strengthen talent
competitiveness, expand the internal Delta Management System, empower diverse
innovation, attract high-quality international talents, and work with renowned domestic

Ping Cheng, Chief Executive Officer of Delta Electronics

and foreign institutions in the cultivation of future talents. We invested 3.02 MUSD in 2020
to create joint R&D centers and establish a global talent platform to integrate industrial,
government, and academic resources for creating an internship hub and international

management measures to attain balance between work and life.

courses for cultivating and attracting top talents.
Delta is committed to abide by international human rights conventions and local
In terms of talent development, Delta is committed to creating an employer brand andregulations of its global operations. We established the Delta Human Rights andcontinues to invest in innovative talent development plans. We seek to create a high-

Employment Policy and used the digital learning platform to require employees to takequality work environment for employees and attain sustainable development targets.

human rights training courses. The global completion rate for human rights courses was

We integrate digital technologies to improve talent development and use the knowledge

85% in 2020.

sharing community developed by the Company to integrate global digital training
resources.

Delta’s contributions to society include popularizing green building and transportation,
promoting science, energy education and climate action, implementing active talent

Delta pays close attention to corporate commitments and employee care. We provide

cultivation, and developing the DeltaMOOCx online learning platform centered on technicala care and benefits system superior to regulations and encourage employees to takeand vocational education. We used core corporate competencies and resources, andleave to relieve stress. Delta takes care of employees through comprehensive healthinvested nearly 9 MUSD in social participation and engagement in 2020 for the purpose of8About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

increasing the environmental protection awareness of the public while improving equality
and quality of education.
Delta continues to promote sustainability. The Delta Electronics Foundation launched theworld's first 8K ultra-high-definition environmental protection documentary "Water with
Life" and presented the documentary at charity events for tens of thousands of viewers.
The program increases the public’s awareness of water resource issues and how themarine ecology is affected by climate change.
Sustainable development is a long-term issue that benefits everyone. Delta remains
dedicated to improving and using our core competencies in power and electronics toachieve the United Nations Sustainable Development Goals. We shall continue crossborder and cross-sector collaboration to expand our influence and create a sustainable
future for Earth and the next generation.

9About the
ESG Report1

A Word from
the Management

Overview

Sustainable
Management

Overview
1.1 Delta Electronics Organizational Structure

10

1.2

Sustainable Business Development

1.3

Enhancing Brand Value

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

1.1 Delta Electronics
Organizational Structure

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Overview
Established: 1971
2020 Delta Electronics, Inc. (DEI) revenue *1: 9,625 MUSD
Delta is a leader in power supplies and thermal management solutions, as well as energysaving and new energy solutions, with customers across the world. Delta has integrated
its software and hardware system products in recent years and focused on strategic

Offices

PlantsR&D Centers

R&D Engineers

Total Number of
Employees Worldwide

171

45

74

9,284

83,804markets such as industrial automation, building automation, energy infrastructure, ICT
infrastructure, and electric vehicles to provide smart and energy-efficient solutions
for customers. Delta is headquartered in Taipei, Taiwan, and has main sales offices
throughout the world, including nearly 40 countries in Europe, Asia, America, and Africa.
With our corporate mission: "To provide innovative, clean and energy-efficient solutions
for a better tomorrow", Delta was the Climate Savers Computing Initiative's (CSCI) firstmember from Taiwan. Delta participates in activities of the following associations in Taiwan:
Business Council for Sustainable Development of Taiwan (BCSD Taiwan), Center for
Corporate Sustainability, Taiwan Corporate Sustainability Forum (TCSF), Taiwan Corporate
Governance Association (TCGA), Chinese Business Ethics Education Association,
Association of Taiwan Listed Companies, Taiwan Optoelectronic Semiconductor Industry
Association (TOSIA), Taiwan Electrical and Electronic Manufacturers' Association(TEEMA), and Taipei Computer Association. In Mainland China, Delta is a member ofassociations such as the China Power Association, Chinese Association of Automation,
China Communications Standards Association, and China Renewable Energy Society. In
Thailand, Delta is a member of the Thai Autoparts Manufacturers Association and Thai IoT
Association. In other overseas regions, Delta is a member of associations related to green
building such as the International WELL Building Institute (IWBI) and U.S. Green Building
Council (USGBC) We believe in fulfilling Delta's ESG goals through sound corporate
governance, balancing stakeholder interests, and supporting social progress.

*1 Please refer to the 2020 Delta Electronics, Inc. (DEI) annual report revenue boundary.

11

About the
ESG Report

1.1 Delta Electronics
Organizational Structure

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Delta's Global Operations

Main Sales Offices
Main Plant Sites
Main R&D Centers

Frankfurt Drammen Espoo
St. Petersburg
Amsterdam
Moscow
Eindhoven
Warsaw
Manchester
Soest Prague
Urumqi
Wien
Paris
Dubnica Liptovský Hrádok
Bern
Bucharest
Teningen
MilanoIstanbul
Rome
MadridRudrapur
New Delhi
Dubai
Cairo
Aberdeen
Glasgow

Vancouver

Vaxjo

MumbaiBangalore

SeattleBeĳingSeoul

Wujiang
Wujiang
Wuhu

Wisconsin

MoriokaShanghai
ChenzhouTaipei
Dongguan
Taoyuan
Ho Chi Minh
HsinchuTaichung
YangonManilaTainan
Pasig
Samutprakarn Manila

Detroit

Fremont

Tokyo
NagoyaOsaka

Los Angeles
San Diego
AustinBedfordBostonOakland
Raleigh

Dallas
Houston

Chungli
Mexico City

Kuala Lumpur
Singapore
Bogotá
JakartaLima
São José dos Campos
Curitiba

Johannesburg
Cordoba
SydneyMelbourne

12About the
ESG Report

1.1 Delta Electronics
Organizational Structure

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

1.1 Delta Electronics Organizational Structure
Delta's corporate governance framework and highest governance unit is the Board of Directors. To strengthen corporate governance, independent directors are appointed by the Boardof Directors. Delta has established functional committees such as the Compensation Committee and Audit Committee to improve the performance targets and compensation structure of
directors and managers of the Company. We implement effective internal controls and risk management to respond to potential crises and risks for the Company.
Shareholders Meeting
Board of Directors
ChairmanVice Chairman
Audit Committee
Audit
Compensation Committee
CEO

Strategic Steering Committee

President & COO

Global Operations
Asia

Business Units
Power Electronics

Function Units
TQM

RD

IT

Global Manufacturing

Finance

Brand Management

Corp. Communications

Strategic Marketing

HR

ESG

Legal / IP

Corporate Investment

Energy Management

Facility

Delta Management System

Occupational Safety and HealthEuropeAutomation

Global Supply Chain
Management

AmercasOther Areas

Infrastructure

Corporate Strategic
Business Development
and Alliance

Smart Manufacturing13

1.2 Sustainable Business
Development

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

1.2 Sustainable Business Development
By leveraging our core competence in power electronics, Delta has developed innovative technologies in both hardware and software based on the needs of our clients. We provide
innovative, clean and energy-efficient solutions and system integration services while striving to promote our brand and enhance our corporate image. According to statistics from 2012 to2020, Delta has had 1,169 successfully completed cases all over the world. These projects have covered areas such as industrial automation and control systems, building automation,
data center infrastructure, telecom power systems, intelligent monitoring & management systems, electric vehicle charging systems, and renewable energy. These projects have assistedclients in saving operations costs and improving their global competitiveness and have contributed to reducing global warming.

1.2.1 High-Performance Product Development
Delta has divided its operations into 3 business categories based on its business continuity strategy. These include “Power Electronics”“Automation”, and “Infrastructure”, which accountfor 55%, 14%, and 31% of revenue respectively.
Delta maintains its leadership position in the ODM (Original Design Manufacturer) industry, and has launched Delta Smart Manufacturing (DSM) total solutions. By integrating our productadvantages with hardware and software technology, we can work toward achieving a smart, automated production plant. By acquiring an in-depth knowledge of our customers' needs, we
can create and provide customers with energy-saving total solutions designed for comfort, convenience, environmental protection, and high performance.

Business Scope of Delta's 3 Business Categories

14

Power Electronics

Automation

Infrastructure• Components• Power and Systems• Fans & Thermal Management• Automotive Electronics• Industrial Automation• Building Automation• ICT Infrastructure• Energy Infrastructure &Industrial Solutions

1.2 Sustainable Business
Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

3 Major Business Categories

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

1.2.2 Global Success Stories in the Implementationof SDGs

Power Electronics"Power Electronics" includes: components, power and systems, fans and thermal

Delta actively provides one-stop service solutions to customers around the world. As

management, and automotive electronics. Delta is a leading provider of power and thermalof 2020, we have successfully delivered 138 cases and have actively developed high-management solutions. We provide switching power supplies, DC fans, and passive

performance products and solutions with significant benefits for customers, such ascomponents for renowned customers in the global ICT, consumer electronics, and industry

reduced operating costs and enhanced global competitiveness.

sectors. Delta uses its core technologies for integrating electrical and electronic powersystems to provide solutions and products for electric and power systems for electric

Statistics of Delta's Success Stories with 7 Major Solutions

vehicles and hybrid vehicles.
Delta's Solutions

2012-2020

2018

2019

2020

Data Centers

390

36

71

58

Display andMonitoring

157

24

23

6

Electric Vehicle
Charging

45

11

5

14

scalable, and highly compatible building automation solutions.

Industrial Automationand Smart
Manufacturing

244

25

85

27

Infrastructure

Renewable Energy

79

10

14

11

Building Automation

141

29

47

18

Telecom Power

86

11

4

3

Others

25

6

7

1

1,167

152

256

138

Automation"Automation" includes industrial automation and building automation. Delta provides
customers with industrial applications including food, textile, lifting, elevator, rubber andplastic, printing and packaging, machine tools, and electronics in the industrial automation
sector. Delta also integrates its automation technologies and abundant knowledge in
the industry to actively advance toward smart manufacturing. Using IoT technologies,
Delta integrates equipment in buildings such as air-conditioning, lighting, energy, watersupply and drainage, elevators, electricity, and security access systems to create flexible,"Infrastructure" includes ICT infrastructure and energy infrastructure. In the ICT
infrastructure sector, Delta is a main global supplier of ICT power systems, data center
infrastructure, and networking systems and provides customers across the world withenergy-efficient and reliable solutions. Delta provides energy infrastructure facilities
for multiple sectors including renewable energy, electric vehicle charging, and energy
storage systems to create sustainable cities with customers. Delta is also a professional
manufacturer of video displays and projectors that are used in family theaters, surveillance

Total

centers, large-scale concert halls, outdoor displays, and exhibition halls. The scope of theinfrastructure also includes industrial power supplies, medical power supplies, and medical
and health equipment.
15

1.2 Sustainable Business
Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Case 1: Taipower Xia Xing Power Station

Case 2: Hanoi Telecom Subsidiary Data Center

Delta provided the Xia Xing Branch Power Station of Taipower's Kinmen Tashan Power Plant

Delta used a modularized data center solution (Point of Delivery; POD) to create Vietnam’s

with an energy storage solution that includes a 1MWh lithium-ion battery energy storage

first Uptime Tier III TCCF (Tier Certification of Constructed Facility) data center for Hanoi

system, a 2MW power factor correction system, an energy management system, and an

Telecom's subsidiary HTC-ITC. The data center supports local 5G networks and provides

environmental management system. The total solution was designed, produced, andbuilt by

an important basis for economic development.

Delta, which specializes in one-stop integrated services to maximize efficiency and safety.
The data center is located in the Hoa Lac High-Tech Zone and occupies an area of 750
The system was Taipower's largest energy storage system when it was commissioned

square meters. It is provided with a total power capacity of 750kW with an additionaland can operate in dual modes. The "F-P (Frequency-Watt) mode" used during regular

750kW for redundant power protection. It received Tier III Certification from the U.S.-based

operations helps reduce the impact caused by the load increases and decreases ofUptime Institute and meets the availability requirement of 99.982%. It also integrated angenerators and fluctuations of renewable energy supplies on the grid. In the event of aefficient and energy-saving uninterruptible power supply (UPS) system, precision cooling,

generator emergency, the system automatically switches to the "RoCoF (Rate of Change

racks, accessories, and the Data Center Infrastructure Monitoring (DCIM) to provide

of Frequency) mode" which can deliver 2MW of power within 200 milliseconds, and secure

remote monitoring, variable air fan speed control, and hot and cold ducts to improvea 30-minute buffer time for the grid. The rapid response time is twice as fast as the 400ms

energy efficiency. The power usage effectiveness (PUE) of the data center is expected

required by Taipower. Kinmen is Taiwan’s first island to demonstrate a smart grid power

to reach 1.4 and meet the standards for high energy efficiency for data centers in thesystem. The successful experience of this system will guide the construction of smart grids

industry.

on Taiwan’s main island in the future.

Delta built Taipower's largest energy storage system at Xia Xing Branch Power Station of Kinmen
Tashan Power Plant.

16

Delta created the first Uptime Tier III TCCF (Tier Certification of Constructed Facility) data center in
Vietnam for Hanoi Telecom's subsidiary company HTC-ITC.

1.3 Enhancing Brand Value

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

1.3 Enhancing Brand Value
Align Brand Value with Sustainable Development

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

years. In 2020, Delta's brand value once again took a leap forward in its 8th year ofcontinuous growth, rising 11% compared to that of 2019, and reaching 331 MUSD.
2020 was a year of upheaval for the entire world. COVID-19 has caused an unprecedented
impact and numerous challenges. However, Delta has responded with agility by using

Brand Positioning

different forms of online and offline communication, and using digital marketing andsocial media to enhance our brand image. The new lifestyle created by the pandemic has

Delta's brand emphasizes innovation and energy conservation and features a combination

increased more demand for digital services, online communication, IT equipment, andof business development and sustainability. As a provider of power and energy

data centers. In addition, a healthy and safe living and work environment has become

management solutions faced with global climate and environmental changes, Delta

crucial for everyone. Delta will continue to provide people with services necessary in thecontinues to invest in product R&D and technological innovation to provide more efficient

post-pandemic era through solutions for green data centers, 5G communication, smart

and more reliable energy-efficient solutions and to create sustainable low-carbon cities.

and healthy buildings, and air quality to create a healthy and happy living environment.

This is the commitment of the Delta brand and specific achievements of our corporatesocial responsibility.
Delta is committed to its mission: “To provide innovative, clean and energy-efficientsolutions for a better tomorrow.” This commitment is Delta's pledge and its commitment
to investors, customers, and employees. We believe deeply in bringing together
leading technology and customer cooperation to continuously create highly efficientand reliable power electronics products, industrial automation, energy management
systems, and consumer products. Delta is dedicated to providing industry customers andconsumers alike with a variety of products and services that support a smarter and moreenvironmentally-friendly future.

Best Taiwan Global Brands
2020 marked the 10 th year of a new era for Delta's brand. We have upheld our brandpositioning and commitment for "Smarter. Greener. Together." and implemented them fromcore competencies to product development while fulfilling corporate social responsibilities.
We are honored to have received recognition for our work. Our brand value has grownsteadily in the past decade and we have successfully transformed from a component
supplier to a system integration solution provider. Since 2011, Delta has been listed on
Interbrand's brand valuation of the 20 Best Taiwan Global Brands for 10 consecutive

Delta was honored as one of Taiwan's top 25 global brands in the prominent Best Taiwan Global
Brands survey for the 10th consecutive year. Ms. Shan-Shan Guo, Delta's chief brand officer, accepted
the award on behalf of the company.

17

1.3 Enhancing Brand Value

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

International Corporate Citizen

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendixhigh-resolution footage of humpback whales that had swam thousands of kilometers fromthe South Pole to give birth to their offspring. As digital media creation has become an

Delta hopes to achieve both technological innovation and become a world-class corporate

important medium for expressing humor and communicating care in the cloud work andcitizen by encouraging people to cherish environmental sustainability.

leisure environment created by the pandemic, Delta invited experts to jointly design the
narration of the documentary for the first time. The participants offered innovative ideas for

Delta is the first company in Taiwan to pass the SBTi carbon reduction target review andadding narration or editing the footage. Delta created the contents to attract more talented

has reached carbon reduction targets for 3 consecutive years. The renewable energy

copywriters and multimedia talents to care about marine ecology and sustainability of theconsumption ratio of main production plants reached 55.1% in 2020. Delta addresses theecological environment.

significant levels of energy consumption in buildings by incorporating green buildings andintroducing the latest building automation technologies in its own plants and offices, andbuildings donated to campuses. We have created 27 green buildings across the globe,

Internal Brand Communication: Achieving a Sustainability
Consensus among Employees

and our new building in Taipei, 5th phase development in Chungli, Taichung, and 2nd phasedevelopment in Tainan will adopt green building designs. The new building in Taipei will

Since 2011, Delta has issued its Brand News bi-monthly to encourage the development

also be designed to meet the WELL Building Standard. Data centers have become known

of a brand consensus, as well as to share Delta's branding practices and operations infor their high energy consumption. Delta already has 2 data centers that obtained LEED

various regions of the world. We launched the digital version of our bi-monthly newsletter

V4 ID+C green data center certification. The data center of Delta Taipei Headquarters wasa few years ago and have enhanced our video and social media connections. Thesethe world's first green data center to receive LEED platinum certification.

creative measures enrich our employees' reading experience and allow us to share theachievements of the Delta brand to more external partners.

Delta Electronics Foundationis committed to promoting

Delta has organized the Delta Talk platform over the past few years and invited theenvironmental education.

CEO and COO to communicate Delta's direction and strategies for its organizational

It launched the first 8K

transformation. The CBO also shared her experience of Delta's brand development, branddocumentary of the marine

positioning, and CSR for employees to understand that CSR is more than just a part ofenvironment titled “Songs ofthe corporate culture. We should instill it into our lives and let it become a part of who we

W h a l e s . ” in 2020 to tell theare. Delta's Brand Management and Human Resource Divisions work together to organize

story of how whales protect theregular brand training courses that help marketing and sales employees in all regions andEarth's environment on behalfbusinesses familiarize themselves with the external communication of the Delta brand soof humans. The film crew spentthat everyone at Delta becomes a spokesperson for the Delta brand.

more than 3 months in the ocean
surrounding the Kingdom of Mr. Bruce Cheng (3rd from left), founder and honorary
Tonga in the equatorial South chairman of Delta, and Ms. Shan Shan Guo (3rd from right),
vice chairman of Delta Electronics Foundation, posing with the

Pacific. The crew used Delta's 8K winners of the competition of Songs of Whales dialogue andproject technologies to capture film adaption
18

About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

2

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Sustainable Management
2.1 Sustainable Management
2.2 Policies and Promotions
2.3 Responding to Global Sustainable Development19

2.1 Sustainable Management

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

2.1 Sustainable Management
2.1.1 Sustainable Key Performance
Economy

11

9,081

9,006

9,625
8.1

8.9

9.0

331

297

266

9,345

10,11910,989

83

84

2019

2020

72

Number of
Board Members

4

Number of
Independent Directors

2018

2019

2020

Global Revenue(MUSD)

Environment

11,684

Metric Tons CO2e
The carbon reduction equivalentof Delta's 15 certified green
buildings and 5 green buildings
sponsored by Delta in 2020

33.5

Billion kWh (2010-2020)
High efficient products that help
global customers save electricity

2018

2019

2018

R&D Investment
Ratio for DEI Revenue(%)

507,392 517,960

41.2

2020

2019

2020

Brand Value(MUSD)

563,281

2018

2019

2020

Cumulative Granted Patent(Numbers)

310,322

537

505

34.5

463

0

0

0

2018

2019

2020

Lawsuits Concerning
Violations of Corruption
and Anti-trust Laws

42,666.0 42,510.6

39,336.9

68.6

70.1

2019

2020

47.8

193,231

21.8

2018

Supplier ESG Improvement Rate(%)

109,121

2018

2019

2020

SBT Carbon Intensity(Metric Tons-CO2e / MUSD)

2018

2019

2020

Total Electricity Consumption
(MWh)

2018

2019

2020

Renewable Electricity
Generated and Purchased
(MWh)

2018

2019

2020

Water Productivity Intensity(Metric Tons / MUSD)

2018

2019

2020

Total Waste Generated(Metric Tons)

2018

Hazardous Waste Recycled Rate(%)

Society

32.8

9.53

9.07

86,101

48
80,545 83,804

75.6

6.99

Female Manager Rate
(%)

>10

47

81.2

643
>7
27

383

4.26

236

0.96

Incidence of Employee
Occupational Injury
on Record(%)

20

2018

2019

2020

Social Participation Contributions(MUSD)

2018

2019

2020

Number of Employees Worldwide

2018

2019

2020

Offer Letter Acceptance Rate
(%)

2018

2019

2020

Global Average Hours ofTrainings per Person(Hour)

2018

2019

2020

Cumulative DeltaMOOCx
e-Learning Video Views(Million)

2018

2019

2020

Number of Volunteers in Energy
and Climate Education(Person)Appendix

2.1 Sustainable Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

2.1.2 Awards and Recognition
Dow Jones Sustainability Indices• Listed on the Dow Jones Sustainability
World Index for 10 consecutive
years, and Dow Jones Sustainability
Indices (DJSI) and Industry Leader inElectronic Equipment, Instruments &Components for 5 years• Listed on the Dow Jones Sustainability
Emerging Markets Index for 8
consecutive years

FTSE4Good Index Series• Selected consecutively for the
FTSE4Good Emerging Indexes• Selected consecutively for the
FTSE4Good TIP Taiwan ESG Index(compiled by Taiwan Index Plus
Corporation and FTSE Russell)

SAM Sustainability Award• Awarded the Gold Class rating in the
Sustainability Yearbook published by
RobecoSAM for the 7th time

Institutional Shareholder Services (ISS)Enterprise Performance Evaluation• Received "Best" rating in the evaluation

CDP• Awarded the CDP Climate Change
Leadership for the 4th time
• Two “A” leadership level ratings for
substantial contribution to climatechange and water security issues,and Supplier Engagement Leader
for continuous development of asustainable value chain

ESG100• Selected for the Thaipat Institute ESG100
for the 6th consecutive year

Morgan Stanley Indexes• Selected consecutively for the MSCIACWI ESG Leaders Index• Selected consecutively for the MSCIEmerging Markets ESG Leaders Index
and the MSCI Taiwan ESG Leaders
Index

Best Taiwan Global Brands• Recognized as a “Best Taiwan Global
Brand” for the 10th consecutive year21

2.1 Sustainable Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Global Views Monthly” Honor Roll
• Received the Global Views Monthly
Annual Corporate Social ResponsibilityAwards─Honor Roll for a 2 nd time since2008• 15 first prizes, 2 honorary awards,
and 3 model awards in the Global
Views Monthly’s Corporate Social
Responsibility Awards since 2005

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Awards for Foreign Companies in
China• Recognized as one of the top 3
companies in the electronics industry
in the "2020 China Corporate Social
Responsibility Development Index"• Ranked among the top ten foreigncompanies in the "Blue Book ofCorporate Social Responsibility (2020)"
published by the Chinese Academy ofSocial Sciences for the 6th consecutive
year.

ENERGY STAR Sustained ExcellenceAward• Received ENERGY STAR Sustained
Excellence Award for the 3rdconsecutive year
• Received the ENERGY STAR Partnerof the Year for the 5th consecutive year

Best Sustainability Award from theStock Exchange of Thailand• Received the Thailand Sustainability
Investment (THSI) Award from theStock Exchange of Thailand (SET)The Taiwan Corporate Sustainability
Award• Delta received 10 major awards in
the Taiwan Corporate SustainabilityAwards held by the Taiwan Institute for
Sustainable Energy in 2020

• Delta received the 2020 Sustainability Disclosure Award from the Securities and Exchange Commission (SEC) of Thailand and Thaipat Institute• Received the 2020 Best Companies to Work for in Asia Award from HR Asia
• Received the 2020 "Excellence Award in Corporate Responsibility of the Year" and "Green Development Enterprise of the Year" from "Southern Weekly"• Selected as a "GoldenBee Enterprise" in the "2020 GoldenBee CSR China Honor Roll" and selected for the "2020 GoldenBee Responsible Competitiveness Best Practices"• Delta received the "Climate Change Management Excellence Award" in the SGS CSR Awards for the 2nd consecutive year

22

Appendix2.2 Policies and Promotions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

2.2 Policies and Promotions
2.2.1 ESG Policy and Mission

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Our commitment is to:

Maintain good corporate governance and adhere to business ethics

Delta has upheld the mission statement: "To provide innovative, clean and energy-efficientsolutions for a better tomorrow" since its founding. We are committed to the brand promiseof "Smarter. Greener. Together." Delta maintains its commitment to promoting economic,

Adhere to all laws and regulations

environmental and social sustainable development in its various aspects of operation.
These include providing energy-saving products and green solutions, improving corporate
governance, taking stakeholders' benefits into account, protecting the environment,

Create company value and improve shareholders' rights

focusing on energy conservation education, promoting environmental education, andmore. Along with continuously addressing sustainability issues, we also focus on therelationship between Delta's value chain, the environment and society. We actively play
our role as an international corporate citizen based on our core competencies.
As an international corporate citizen, Delta supports international principles and standards
including the Responsible Business Alliance Code of Conduct (RBA Code of Conduct),

Invest in innovative R&D, develop intellectual property rights, and do
our best to improve technology for humanity's social and economic
development, and sustainable development of the global environment
Develop environmental protection and energy saving products andimplement environmental protection as a way to reduce our impact on theenvironment

Universal Declaration of Human Rights, International Labor Organization (ILO) Tripartite
Declaration of Principles concerning Multinational Enterprises and Social Policy, United
Nations Global Compact, United Nations Guiding Principles on Business and Human

Provide a safe and healthy work environment for employees, space for
their full talents, and reasonable compensation and benefits

Rights, and the OECD Guidelines for Multinational Enterprises.
Delta's Board of Directors has clearly defined 4 major principles with the “Delta Corporate
Social Responsibility Best Practice Principles" that state our ESG responsibilities:

Actively participate in environmental protection and energy conservation
education, and encourage employees to participate in social welfare
activities

Implement corporate governance, develop a sustainable environment, safeguard publicwelfare, and enhance the disclosure of ESG information.

Promote the concept and practice of sustainability in Delta's supply chain
and jointly pursue better performance232.2 Policies and Promotions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

2.2.2 Organization Responsible for Promoting
Sustainability

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

understanding stakeholder expectations to identify material topics. It makes adjustments
and mitigates the possible impact of material topics such as climate change on operations,and jointly plans application strategies and execution plans with various function

Delta's ESG Committee is its highest-ranking sustainable management organization.

subcommittees. It also drafts the ESG Report each year and submits it to the ESG

Since the Committee’s founding in 2007, it has continuously transformed in line with

Committee for issuance.

sustainability development trends. Delta established the role of Chief Sustainability Officer
The Committee oversees 10 project teams that focus on 3 major aspects of ESG goals(CSO) in 2019 to promote and intensify Delta's sustainable development.

including corporate governance, environmental protection and energy conservation,
Mr. Bruce Cheng, founder and honorary chairman of Delta, serves as honorary chairman

and employee relations and social participation. The "Responsible Business Alliance"of the Committee, while Chairman Yancey Hai acts as the chairman. The Committee isproject team was added in 2020. The project teams are composed of business groups,

composed of the following members: vice chairman, CEO, COO, CSO, and top regional

region directors, and department directors. They are responsible for formulating Delta's

operations and functional executives. The ESG Committee oversees staff organizations

project plans, development tools, and procedures and they organize regular meetings toand execution units including project teams and the Corporate Sustainability Development

plan annual sustainability strategies, review the operations of the Company and various

Office. The Delta Electronics Foundation is also invited to attend meetings of the ESG

functional committees, and supervise the effectiveness of the execution. The results of theCommittee. The "Corporate Sustainability Development Office" serves as the secretariat

execution are reported to the Board of Directors each quarter.

which is responsible for analyzing international trends in sustainable development andDelta ESG Committee Organization

ESG Committee
Honorary Chairman: Founder
Chairman: Chairman of the Board
Committee Members: Vice Chairman, CEO, COO, CSO, Regional Operations and Function Heads

Corporate Sustainability Development Office
Delta Electronics Foundation
Project teams (HR, IT, EMS, OSH and Material)

Corporate Governance
Board
Competence

24

ESG
Disclosure
Enhancement

Supplier
ESG
Management

Environmental Protection and Energy Savings
Responsible
Business
Alliance

EnergyManagement

Water and
Waste
Management

CarbonManagement

Product
Management

Employee Care and Social Participation
Human
CapitalDevelopment

SocialParticipation

2.3 Responding to Global
Sustainable Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

2.3 Responding to Global Sustainable Development
2.3.1 UN Sustainable Development Goals (SDGs)
The United Nations passed the Sustainable Development Goals (SDGs) in 2015, which

opportunities. Delta's Corporate Sustainability Office is based on the company's core

set up 17 targets that are related to global sustainable development. The SDGs help Delta

professional capabilities, reference international benchmark case analysis, and successful

evaluate whether product development is in line with global demands and encouragecustomer cases. The ESG Committee decided to focus on 7 SDGs for the future direction

us to think about how to maximize the impact of our corporate mission "To provideof Delta's key development plans.

innovative, clean and energy-efficient solutions for a better tomorrow" and how to uncover

Delta Focuses on 7 SDGs

Sustainable Cities and Communities
Quality Education
High quality education for all. Shaping the development of talent and improving knowledge. Delta
is promoting education and life-long learning from four aspects: Promoting basic subject education;
promoting environmental education such as energy, water resources, and green buildings; assistingin improving educational opportunities in developing countries; and establishing talent cultivation
mechanisms within the company to move towards lifelong learning.

Affordable and Clean Energy
Constructing a reliable and sustainable clean energy system is one of the global priorities. Delta
is dedicated to developing solar power generation systems and renewable energy solutions, anddiscovering new related business models. Delta also provides affordable renewable energy solutions
for low development areas to help more people obtain sustainable modern energy.

As cities grow larger and population becomes more concentrated, sustainable cities have become key
to balancing human welfare and sustainable environmental and social development. Delta actively
promotes green buildings and our green building solutions include building automation and energy
infrastructure. We seek to build sustainable cities with stakeholders.

Responsible Consumption and Production
Sustainable consumption and production are the basis for sustainable business operations. Delta
upholds its mission of "To provide innovative, clean and energy-efficient solutions for a better
tomorrow". It has implemented sustainable consumption and production into daily operations throughpromoting green production measures, and the promotion of green building factory management andthe green operation concept.

Climate Change
Properly responding to climate change and its impact, and taking counter measures are a major
challenge for the company's sustainable business strategy. Delta responds to climate-related risks
by adaptation and mitigation, and continues to identify climate change opportunities. In addition,
Delta uses "corporate self-motivated carbon reduction", "disclosure of climate change information","participation in climate policy", "conversion to electric vehicles and expansion of charging facilities",and "promotion of 100% renewable energy" as strategies and carries out actions from inside out.

Industry/Innovation Infrastructure
Accelerating industrial innovation and assisting in the construction of resilient infrastructure are
the best solutions for companies facing the dual pressures of climate change and sustainable
development. Delta has implemented an internal incentive system to continuously accumulateinnovative energy and provide diversified energy-saving solutions for global customers. Itsapplications include smart manufacturing and low-carbon transportation.

Partnerships for the Goals
As global citizens, companies participate in global partnerships to help activate sustainable
development. Delta participates in international conferences on climate change, provides its views on
sustainable development to the international community and increases the opportunities for industrial
communication. Delta further promotes global partnerships by taking action responding to the "We
Mean Business" commitments.

25

2.3 Responding to Global
Sustainable Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

SDGs Risks and Opportunities for Sustainability

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendixand international sustainability trends) to integrate internal core business operations andexternal sustainability trends and produce Delta's 2030 sustainable development strategy

Delta identifies "improving positive influence" and "decreasing negative influence" by

and key measures. We have started to implement the following steps:

analyzing the level of impact in each stage and its corresponding SDGs via value chain
analysis. Delta focuses on seven SDGs: 4. Quality Education, 7. Affordable and Clean

1.Strategies

Energy, 9. Industry Innovation and infrastructure, 11. Sustainable Cities and Communities,

Each strategy shall correspond to SDGs

12. Responsible Consumption and Production, 13. Climate Action, and 17. Global
Partnerships, for business opportunities that serve as the direction for its future key

2. Indicators and Targets

development plans.

Each strategy shall expand downward to multiple indicators and short, medium, and longterm goals

To facilitate sustainable development, we focus on 7 key SDGs to plan a sustainable
development strategy and expand downward to various key aspects to formulate

3. Action plans

Delta's future strategy roadmap. We use international trend research and analysis andSeveral action plans shall be established for each indicator/target

sustainable benchmark case studies in the industry to develop a framework for oursustainable development strategy. We also use core business analysis (group core value

4. Assigning responsible departments

and business strategy plans) and sustainable trend analysis (international benchmarks

Each strategy shall be assigned to responsible departments which shall take charge ofdifferent action plans

SDG Risks and Opportunities for Sustainability

Supply Chain

26

Logistics

Operations

Products

EmployeeSocialParticipation

2.3 Responding to Global
Sustainable Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

2.3.2 International Sustainability Initiatives
5 Major Commitments for "We Mean Business"
Companies play a crucial role in sustainable development. Delta has long focused on the development of various international sustainability initiatives and identified topics that match
Delta's ideals to make an active response and maximize the effects of company strategy. Climate change is an issue that Delta has focused on for a long time. Dealing with climatechange has become an extension of Delta and our corporate social responsibility commitments. Delta was a leader in publishing the Delta Climate Action Plan in 2015. We signed the"We Mean Business" initiative promoted by the CDP and World Business Council for Sustainable Development (WBCSD), and committed to adopting a science-based carbon emissions
reduction target, reporting climate change information in mainstream reports as a fiduciary duty, engaging in a responsible corporate climate policy, and conversion to electric vehicles andexpansion of charging facilities. We also pledged to join the RE100 initiative in 2021.

Progress of the 5 Major Commitments for "We Mean Business"
Commitments

Delta's Strategic Direction

Milestones

Actions in 2020

Commit to Adopt a
Science-Based Emissions
Reduction Target

Adopt a science-based target(SBT) for driving carbon
emissions reduction*1• Became the first in Taiwan as well as the 87th company
globally to pass the compliance evaluation of the Science
Based Targets initiative (SBTi) in 2017

• Has attained SBTs for individual stages in 3 consecutive years starting from2018 (detailed in Chapter 5).

Commit to Report Climate
Change Information in
Mainstream Reports as A
Fiduciary Duty

Promote climate-related financial
information disclosure• Became a signatory and supporter of the Task Force on
Climate-related Financial Disclosures (TCFD) in 2018

• Identified 4 material topics in climate risks based on our climate risk assessment
in 2020• Has disclosed information in accordance with the TCFD
recommended disclosure framework since 2017

• Tested related TCFD methodologies including monetization, corresponding
factors in financial statements, and scenario analyses based on thecharacteristics of different products

Commit to Responsible
Corporate Engagement in
Climate Policy

Provide advice to the government
on green technology policies
and pay attention to international
climate policies• Collaborated with the reputable think tank American Council
for an Energy-Efficient Economy (ACEEE) and provided
urban energy conservation recommendations in 2018

• Participated in the first International Green Building Symposium organizedby the U.S. Green Building Council and Taiwan Green Collar Association andproposed case studies and regulatory recommendations

Conversion to Electric
Vehicles and Expansionof Charging Facilities

Has set a goal for installingelectric vehicle charging facilities
in major operation sites and toswitch to using electric vehicles
for company vehicles before
2030.*2• Joined the international initiative EV100, a global initiative
launched by the Climate Group, in 2018. Accelerate thetransition to low-carbon transportation.

• Attained the targets for installing charging facilities in all main production plants
in Taiwan

Commit to 100%
Renewable Electricity

Achieve the 100% renewableelectricity target by 2030

• Started planning in 2020 and filed an official application formembership in 2021

• Develop Delta's RE100 roadmap and targets• The EV Charging Station in Yokohama of Delta Japan offers advantages infull microgrid applications and smart energy management. It was selected asa municipal emergency response site by the municipal government. The casestudy was included in the EV100 Annual Report.

*1 Using 2014 as the base year and adopting the target of 56.6% carbon reduction by 2025
*2 Electric vehicles include pure electric vehicles, plug-in hybrid vehicles, and hydrogen vehicles.

27

2.3 Responding to Global
Sustainable Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Conversion to Electric Vehicles and Expansion of Charging Facilities
Delta joined the EV100 low-carbon transportation initiative in 2018 and became the first EV100 member that is
a provider of energy infrastructure facilities for electric vehicles. Delta has worked with leading companies andorganizations in sustainable development across the world to jointly support low-carbon transportation.
Delta is committed to providing charging facilities at Delta's sites of operation and converting company vehicles
to plug-in hybrid vehicles, pure electric vehicles, and hydrogen vehicles before 2030. This will reduce carbon
emissions from transportation and fulfill Delta’s mission: “To provide innovative, clean and energy-efficientsolutions for a better tomorrow.”
As of 2020, Delta has installed charging facilities for electric vehicles at Delta's sites of operation in 22 cities
across the world including Taipei, Taoyuan, Chungli, Hsinchu, Tainan, Shanghai, Wujiang, Daimon, Ako,
Samutprakarn, Chachoengsao, Gurgaon, Hoofddorp, Eindhoven, Soest, Teningen, Bern, Dubnica nad Váhom,Warsaw, Fremont, Detroit, and Raleigh.
Delta's targets for the different stages of its transition to electric vehicles are as follows:• Prioritize the purchase of electric vehicles for Delta's new company vehicles starting from 2020.

As of 2020, Delta has installed charging facilities for electric vehicles at Delta's
sites of operation in 22 cities across the world.

• All new vehicles purchased starting from 2025 must be electric vehicles.
• Replace all non-electric company vehicles with electric vehicles by 2028 and attain the EV100 commitment by 2030.

2.3.3 Participation in Associations
Delta participates in associations and various organizations to promote business, expand sectors of concern, develop business, meet regulatory requirements, enhance networking,cultivate talents, or demonstrate its leading position in the industry. Delta mainly joins organizations as a regular member or serves as director or chairperson of certain associations. As
associations have their own goals and intentions, Delta's participation as a member of such associations does not mean that Delta agrees with all opinions of the associations.
Delta has long focused on businesses and sectors including electronics and electrical machinery, automation, renewable energy, green building, healthy and smart buildings, electricvehicles, communication power supplies, leadership development, human resources, and corporate sustainability. Total expenditures in 2020 totaled approximately 150,000 USD and thelist of associations is disclosed on the Company's official website.

28

About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

3

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

AppendixCommunication with
Stakeholders
3.1 Stakeholder Communication and Response
3.2 Materiality Assessment29

3.1 Stakeholder Communication
and Response

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

3.1 Stakeholder Communication and Response
Delta values communication with stakeholders. We deeply understand that we can only receive feedback and opinions from stakeholders by delivering and disclosing correct, objective,
and updated information. As Delta pursues corporate sustainability, we seek to revise and adjust our practices whenever necessary, respond to the expectations of the public, anddemonstrate our social impact. Delta's ESG Committee has, pursuant to the AA1000 Stakeholder Engagement Standard (AA1000 SES), defined 6 major stakeholders based on local andinternational trends in sustainable development as well as the needs of business operations. These include employees, customers, suppliers, investors and shareholders, media, andcommunities.
Delta adopts diverse channels to communicate with stakeholders. We identify key issues of concern to stakeholders through materiality analysis and take the necessary actions toenhance the content of our information disclosures. We target the 4 major goals of communication — to be received, to be understood, to be accepted, and to take action — to explain
Delta's progress and response for sustainable management.

Stakeholder Communication and Response
To be Received

To be Understood

To be Accepted

To Get Action

Communication Platform

Issues of Concern

Response

Actions

Employees• 23 labor-management meetings (quarterly)• 23 meetings of the Employee Welfare Committee(quarterly)• Employee engagement survey (every 2 years)• Employee satisfaction survey (annually)• Delta corporate website (intermittently)• Employee feedback mailbox (intermittently)• Communication and work meetings of units anddepartments (intermittently)• Customer RelationshipManagement• Innovation and R&D• Corporate Governance• Code of Conduct• Human Rights• 351 cases of internal
opinions• 46 labor-management
meetings and meetingsof the Employee Welfare
Committee• Maintain strict confidentiality of reported informationand provide named and anonymous channels• Communicate with employees through town hallmeetings• Use diverse communication channels to listen to
employees' opinions• Assign dedicated personnel to listen to employees'
opinions and take related measures

Customers• Delta ESG website & ESG Report (annually)• Regular customer review meetings (annually)• Channel partner meetings and business platform(annually)• Customer satisfaction surveys (every 2 years)• Brand News (every 2 months)• Customer audits (intermittently)• Delta website (intermittently)• Customer RelationshipManagement• Corporate Governance• Code of Conduct• Innovation and R&D• Brand Image• Customer QBR audits: 27
customers• Satisfaction score: 86
points• Provide one-stop services and improve customer
satisfaction• Comply with Responsible Business Alliance (RBA)
regulations and implement labor, ethical, health andsafety, environment, and management reviews

Communication
Target30

About the
ESG Report

3.1 Stakeholder Communication
and Response

Suppliers

Investors andShareholders

Media

Communities(research institutes,
NPOs, communities,
and others)

•
•
•
•

A Word from
the Management

Delta ESG website & ESG Report (annually)
Supplier training program (annually)
Supplier e-commerce system (monthly)
Supplier EC - Environmental Hazardous
Substances Management Standards (annually)

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix• Customer RelationshipManagement• Code of Conduct• Corporate Governance• Risk Management• Occupational Safety and
Health• Supplier training: 1 round• Encourage suppliers to comply with the Sustainable
Supply Chain Management Regulations and Policy• Delta identifies high risks through regular supplier
ESG surveys to reduce the risks to supply chain
continuity. We use the results of the questionnaire
to identify suppliers with potential for collaborationin ESG and prioritize them for assistance andcollaboration.

Delta ESG website & ESG Report (annually)
Delta website, financial report (annually)
Investor forum (intermittently)
Annual shareholder meeting (annually)
Institutional investor visits (intermittently)
Investor services mailbox (intermittently)
Meetings with institutional investors(intermittently)• Institutional investors' conference (quarterly)

•
•
•
•
•

Business Outlook
Long-term Strategies
Corporate Governance
Innovation and R&D
Occupational Health and
Safety• Human Rights• External institutional
investors' conference: 17
rounds• Investor interviews: Morethan 510 rounds• Participation in institution investors' ESG activities
to learn about the awareness and expectations ofinvestors and shareholders for ESG• Provide investors with public and transparent
operation information and help investors understandthe Company's long-term strategies and outlook

•
•
•
•
•
•

• Innovation and R&D• Supplier Sustainability
Management• Brand Image• Climate Change andCarbon Management• Energy Management• Green Products• Press releases: 184
releases• Media interviews: 141
rounds• Social media: More than
63,000 fans on Facebook• Use the COMPUTEX Forum online to promote healthyand smart buildings to communicate environmental
protection ideals for health, energy conservation, andcomfort.
• Communicate innovative energy storage technologies
through technology seminars and help companies
respond to the Renewable Energy Development Act
and sustainability trends• Energy Management• Climate Change• Water Resource
Management• Green Products• Social Participation• Number of collaborating
charity organizations: 15
organizations• Number of volunteer
service beneficiaries:
73,200 people• Views on social network
media: 1.8 million views• Added WELL and LEED ZERO courses• Continue to train corporate volunteers, andcommunicate new knowledge on climate, science,
green building, and marine ecological conservation• Build high-quality climate social media and empower
positive changes for public welfare• Publish books on green buildings and energy
conservation to help the public learn about energy
conservation strategies for buildings and industries

•
•
•
•
•
•
•

Press releases (intermittently)
Press conferences (intermittently)
Media interviews (intermittently)
Delta PR contact (intermittently)
Major activity participation (intermittently)
Social media (intermittently)• Delta ESG website & ESG Report (annually)• Delta Electronics Foundation website(intermittently)• Energy volunteers and climate salons(intermittently)• Low Carbon Life Blog and IC Broadcasting(regularly)• Facebook and Peppo social media (intermittently)• Publication of the Build Green Buildings with
Delta and Save 50% with Delta (intermittently)• Green Collar Architects Training Workshops

31

3.2 Materiality Assessment

About theESG Report

A Word from
the Management

3.2 Materiality
Assessment

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

3.2.1 Methodology
Stage

01

Identification

Change is continuously having an impact on
our business. Delta explores challenges andIn terms of the identification of sustainability issues, Delta

opportunities for sustainability based on specificstarts with the factors that may affect the Company's

implementation of its business operations. Deltasustainability including internal and external economic,

regularly confirms and adjusts the materiality issues

environmental, and social risks and opportunities.

6

Categories of Major Stakeholders

and implements materiality assessment procedures.
We comply with the comprehensiveness, materiality,

Delta adopted international sustainability regulations andand integrity principles of GRI Standards to establish

standards (GRI Standards, ISO 26000 Guidance on Social

Communication Target

3 major analysis steps including identification,

Responsibility, RBA Code of Conduct, UN SDGs, andanalysis, and confirmation to verify the commitment

SASB Standards), and sustainability ratings (DJSI, CDP,

of external entities for sustainability issues and theand MSCI ESG Index), stakeholder expectations andeffect on Delta's operations.

communications, internal management objectives, andEmployees, investors, media, customers, suppliers,
communities (research institutes, NPOs, communities,
and other related stakeholders) are the main targets ofcommunication identified by Delta based on the AA1000
Stakeholder Engagement Standard for communicating
Delta's sustainability actions.

previously-disclosed sustainability information to compile
We set long-term targets for sustainability andand consolidate sustainability issues. This year, Delta

adopt internal KPI verification, external international

invited 6 experts from industries, the government, andsustainability ratings, and comparison withacademia to jointly examine Delta's material topics andcompetitors for a regular evaluation of our execution

also invited 59 of Delta's domestic and foreign executives

and effectiveness. We actively disclose the progressand sustainability partners to take part in sustainability

and effectiveness of Delta's 2025 long-term

consensus meetings and brainstorm on sustainability

sustainability goals to the general public.

concerns and help identify and adjust sustainability issues.
Compared to the sustainability issues of the previous
year, Delta added the "Circular Economy" to economic
issues. In terms of environmental issues, we removed"Environmental Management" and added "Biodiversity".
In terms of social issues, we made minor adjustments
to "Career Development" and changed it to "Talent
Development". Delta ultimately compiled a total of 23
sustainability issues related to operations.

32

23

Sustainability Issues

Sustainability Issues
To ensure the comprehensiveness of sustainability issues
collected, we put together 23 sustainability issues basedon ESG regulations / standards, sustainability initiatives,
feedback from internal and external stakeholders, Delta's
business strategy, sustainability experts, and consensus
meetings.

About the
ESG Report

3.2 Materiality Assessment

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceStage

10 Financial Issues
Identification of Delta's
Sustainability Issues

ESG Regulations / Standards
DJSI

CDP

MSCI

• Corporate Governance• Code of Conduct• Risk Management• Customer Relationship Management• Innovation and R&D• Brand Image• Supplier Sustainability Management• Information Security Management• Taxation• Circular Economy

SDGs

RBA

SASB

Stakeholders' Feedback
Delta's 6 Major Stakeholders

Appendix

Analysis

Delta determines whether sustainability issues are material
based on the 2 major principles of "level of concern tostakeholders" and "impact on operations". We conductedsurveys on 23 sustainability issues. For the survey on the"level of concern to stakeholders", we targeted the 6 major
types of stakeholders with the questionnaire survey forthe purpose of collecting representative samples. For an
the level of impact of each issue on revenue growth,

7 Environmental Issues

environmental sustainability, customer satisfaction, and• Climate Change• Carbon Management• Energy Management• Green Products• Water Resource Management• Waste Management• Biodiversity

the analysis of the impact on operations.

best employer. The ESG team members jointly completed

According to the results of the aforementioned analysis,
we used the results of discussions and confirmation of the
ESG Committee, external experts, and senior executives
and elevated the importance of "Innovation and R&D"
and "Talent Development" issues mainly because productOperation Strategy
Delta Operation Objective

Employee Relations
and Social
Engagement

assessment of the "impact on operations", Delta evaluatedInternational Initiatives
GRI

02

Environmental
Protection andEnergy Savings

6

innovation and R&D forms the basis of the sustainable

Social Issues• Social Participation• Occupational Health and Safety• Talent Development• Labor Relations• Talent Attraction and Retention• Human Rights

development of the Company and Talent Development
creates the energy that drives and supports productinnovation. We combined the issue "Climate Change andCarbon Management" and ultimately selected 13 key
sustainability issues.

333.2 Materiality Assessment

About theESG Report

A Word from
the Management

Survey the Level of Concern

1,567
Valid
Questionnaires

Delta used an online survey to collectinformation on the level of stakeholderinterest in sustainability issues andrecovered a total of 1,567 valid
questionnaires including 216 from
customers, 465 from suppliers, 14
from investors, 753 from employees,
20 from the media, and 99 from thecommunity.

Overview

Stage

03

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Confirmation

We selected 13 material sustainability issues and identified their impact in the Delta value chain. We also
referenced the GRI Standards and disclosed Delta's material topics. We follow the reporting requirements forcollecting internal information, data, and management policies. In addition, Delta clearly defines the importantmeanings, strategies, management approach, and long-term goals of each material sustainability issue. We
follow up on the degree of completion of each target and the effectiveness of execution for flexible adjustmentsof the foundations of sustainable management. Delta also discloses the effectiveness of other potential

Analyze Impact on Operations

59
Executives
and ESG Team
Members

We focused on 4 major factors
including revenue growth,environmental sustainability, customer
satisfaction, and best employer andevaluated the impact of sustainability
issues on the operations of theCompany. A total of 59 ESG teammembers and executives participatedin the evaluation.

sustainability issues of the current year in the ESG Report.

Review Disclosed Contents

24
GRI Topics

Confirm Material Issues

13
Material
Sustainability
IssuesDelta's internal ESG team members,
external experts, and senior
executives defined material issues
based on the results of the survey on
the level of concern and the analysisof the impact on operations before
confirming 13 material sustainability
issues and producing the materiality
matrix. Compared to the previous
year, we added "Occupational
Health and Safety", "Human Rights","Talent Development" and "Carbon
Management" as material issues.

The 13 major sustainability issues
that were identified will be matchedwith the 24 specific topics of the
GRI Standards. The information
disclosure boundary of Delta's value
chain (supply chain management,
operations, products, society) is thengraphed based on these topics andused as the basis for reporting.
2020 Sustainability Experts Meeting3

Formulate Long-Term
Sustainability Goals

We formulated long-term goals for
3 major axes based on the material
issues to help Delta respond to the
expectations of stakeholders in theimplementation of sustainability
Major Axes of Long- plans and use them as the basis for
Term Sustainability internal performance evaluations onachievement status.
Goals

Internal Sustainability Consensus Meeting34

About the
ESG Report

3.2 Materiality Assessment

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

3.2.2 Results of the Analysis and Corresponding Section of the Value Chain
Out of 23 sustainability issues, 13 material issues were identified in the stakeholder materiality assessment in 2020 including innovation and R&D, customer relationship management,
supplier sustainability management, climate change, carbon management, green products, energy management, water resource management, waste management, talent attraction andretention, social participation, talent development, occupational safety and health, and human rights.
Compared to the previous year, we did not include general disclosures (corporate governance, risk management, and Code of Conduct) and results-oriented issues (compliance andfinancial performance) into the materiality matrix. However, the annual targets, implementation methodology, and results of material issues involving company operations are disclosed in
the Company's annual report or ESG report. Non-material issues included information security, brand image, taxation, circular economy, biodiversity, and labor relations.

2020 Material Sustainability Issues Matrix
High

Governance

7

14
15

19

1
10

Level of Impact on Operation

16

1

Brand Image

2

Taxation

3

Circular Economy

4

Information Security

5

Supplier Sustainability
Management

2
17

13

5

6

Customer RelationshipManagement

7

Innovation and R&D

Environmental

89SocialWater Resource
Management

14 Occupational Health

Biodiversity

15 Human Rights

and Safety

10 Energy Management

16 Social Participation

11 Waste Management

17 Talent Attraction and

12 Green Products
13 Climate Change andCarbon Management

Retention
18 Labor Relations
19 Talent Development

6

3
11
8

12

4

9
18

Low

Level of Stakeholder Interest

High

35

About the
ESG Report

3.2 Materiality Assessment

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
GovernanceSupplyChain

Operations

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Delta's Materiality Issues and Value Chain

AspectEconomic

Environmental

36

Material
IssuesImportance to Delta

Innovation andR&D

Innovation and R&D helps convert trends
and demand into products and solutions
which help create success for the world
and Delta.

Energy4.3 Innovation

Customer
RelationshipManagement

Strengthen product functionality andservice to improve customer satisfaction
to increase customers' trust in Delta.

Customer privacy

4.4 Transcending
Customer
Expectations

Supplier
Sustainability
Management

Create a stable and strong supply chain
to communicate Delta's value and exert
positive influence.

Procurement practices,supplier environmental
assessment, supplier social
assessment, materials

4.5 Supplier
Sustainability
Management

Climate Change
and Carbon
Management

Monitor the risks and opportunities ofclimate change and continue to support
Delta's strategies for energy-saving
products and market transformation andpromote sustainable growth.

Emissions, economic
performance

5.2 Climate
Changeand Carbon
Managment

Green Products

Provide green energy-saving products
and innovative solutions to create thekey foundations for the Company's
competitiveness and long-term growth.

Energy5.6 Green
Products

EnergyManagement

Delta's core competencies can help
support long-term environmental
protection and energy conservation.

Energy5.3 Energy
Management

Water Resource
Management

Increase water recycling volume andincrease water consumption efficiency toincrease production efficiency.

Water, effluents and waste

5.4 Water
Resource
Management

Waste
Management

Continue to attain low pollution, easeof recycling, and other diversion rates
to help Delta become a benchmark for
low-carbon environmentally friendly
companies.

Effluents and waste

5.5 Waste
Management"GRI Standard" Topic

Products

Society

Corresponding
ChapterAbout the
ESG Report

3.2 Materiality Assessment

AspectSocialA Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
GovernanceSupplyChain

Operations

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Material
IssuesImportance to Delta"GRI Standard" Topic

Talent Attraction
and Retention

Provide a high-quality work environmentand competitive salary and benefits to
attract and retain key talents, and improve
employer branding for Delta.

Market presence, economic
performance, employment,
diversity and equal
opportunities

6.2 Talent
Attraction

TalentDevelopment

Develop key talents through diverse
talent development plans to strengthen
the organization.

Training and education

6.3 Talent
Learning
Development

SocialParticipation

Use Delta's core competencies andresources to increase the environmental
protection awareness of the public
while improving equality and quality ofeducation.

Indirect economic impacts,
local communities

6.6 Social
Engagement

Human Rights

Comply with international human rights
conventions and provide employeeswith a fair workplace to promote talentdevelopment and reduce labor risks.

Non-discrimination, childlabor, forced or compulsory
labor, human rights
assessment

6.4 Human Rights
Protection

Occupational
Health and
SafetyProvide employees with a secure work
environment and create a safe andhealthy workplace to increase production
quality and performance.

Occupational health andsafety6.7 Occupational
Safety and
HealthDirect impact

Products

Indirect impact

Society

Corresponding
Chapter

Impact on business relations

37

About the
ESG Report

A Word from
the Management

Overview

Sustainable
Management

4

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Corporate Governance
4.1 Key Performance Indicators
4.2 Enhancing the Board of Directors' Functions
4.3 Innovation
4.4 Transcending Customer Expectations
4.5 Supplier Sustainability Management
4.6 Information System Safety and Management
4.7 Comprehensive Information Disclosure andShareholder Communication
4.8 Emerging Risks – Response to the COVID-19
Epidemic

38

Appendix

4.1 Key Performance Indicators

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

4.1 Key Performance Indicators

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Main Endeavors■ International Corporate Citizen:

Market Value

Delta Global Revenue

Brand Value

Delta was listed in the Dow Jones
Sustainability Indices (DJSI) for 10
consecutive years and won the award for> 24,911

10,058

~ 331

MUSD

MUSD

MUSD

Ratio of R&D Investment toTotal Revenue

Cumulative Granted Patents
and Certificate

Tier1 Supplier ESG Survey
Response Rate

~ 9.01%~10,98973%

the Electronic Equipment, Instruments, andComponents Industry for the 5th time in2020■ Implemented Carbon Emissions
Information Disclosure andReduction: Delta was included in the
CDP climate change A List, water security
A List, and supply chain engagement A List

■ International Brand Image: Delta
was listed as one of the Top 20 Best Taiwan
Global Brands for the 10th consecutive
year and its brand value increased by 11%
from 2019 to 331 MUSD.

■ Active Commitment to R&D and
Innovation: Ratio of R&D investment tototal revenue: 9.01%

39

4.1 Key Performance Indicators

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Aligning with UN Sustainable Development Goals

Affordable and Clean Energy

Responsible Consumption and Production• Utilized Delta's own solutions for its Ako Energy Park in Japan anddeveloped an emerging business model that promotes the use ofrenewable energy.

• Used training and successful case studies to help the supply chain
create environmental data inventory capabilities and increase
operation efficiency.
• Delta provides suppliers that exhibit weaknesses with professional
training and assistance to develop ESG capabilities and improve theresilience of the supply chain sustainability in procurement.

Decent Work and Economic Growth• Committed to contributing R&D innovations to establish a variety of
incentive systems to improve innovation capabilities.
• Set up new manufacturing centers in India and provided reasonablesalaries and a high-quality work environment.

Industry, Innovation and Infrastructure

Climate Action• Delta encourages its supply chain to disclose carbon, water, andwaste management information and set reduction goals to respond toclimate change and reduce the risks of disrupted supply chains.

• Established the "Delta Innovation Award" and the Idea Bank toencourage individual and team innovation.

Peace, Justice and Strong Institutions
Reduced Inequalities• Used supply chain ESG questionnaire for high-risk identification andauditing to eliminate work place discrimination and ensure disabled
people's rights.

40• Promoted supply chain conflict minerals due diligence investigation to
help eliminate inequality.
• Supported international corporate operation initiatives by promoting
integrity and anti-corruption measures in internal corporate operations
and supply chains.

Appendix

4.2 Enhancing the Board of
Directors' Functions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

4.2 Enhancing the Board of Directors'
Functions

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

AppendixProfessionalism of the Board Members
Delta Electronics' Board of Directors possess abilities including operations andmanagement, accounting and financial analysis, crisis management, industry knowledge,
international market perspective, leadership, and decision-making. Delta conducts training

The Board of Directors of Delta Electronics consists of 11 seats for Directors includingfor Board members each year to develop and improve the highest governing body's

7 Directors and 4 Independent Directors with a term of 3 years. Delta has adopted theoverall knowledge of economic, environmental, and social issues. The Company opened

Candidate Nomination System for the appointment of Directors in accordance with Article

courses including "Delta's Development Strategy" and "Telecommunications Development:

192-1 of the Company Act. The Shareholders Meeting selects nominees from a list of

5G Opportunities and Challenges" for Directors in 2020.

candidates for Directors. The number of Independent Directors account for approximately
36% of all Directors. Directors who serve as employees account* for approximately 45%

Composition and Structure of the Board of Directorsof all Directors. The Chairman leads the Board of Directors of the Company with the aimof implementing a good Board governance system, improving supervisory functions, andenhancing management. The Board members' diversity and professionalism have beentaken into consideration to implement a good Board governance system.

4.2.1 Board of Directors and Duties
Diversity among Members of the Board
The overall configuration of Delta's Board of Director's selection is based on Delta

Board of Directors● Improve Board Meeting Frequency to Improve Supervisory
FunctionsBoard meetings are convened at least once a quarter to assess corporate
business performance and discuss strategy topics. This includes impacts,
risks, and opportunities in relation to economics, environment, and society.
Six Board of Directors meetings were held in 2020, with an averageattendance rate of 97.73%.

Electronics' "Director's Election Rules" and "Corporate Governance Practices Code". To
fulfill the Board's role in strategic guidance, members of the Board come from diverse
professional backgrounds, expertise, and genders. They should possess the knowledge,
skills, and experience necessary for performing their duties. Members of the Company's
Board of Directors have professional backgrounds and experience in control engineering,
electrical engineering, materials engineering, industrial engineering, accounting, andmanagement necessary for the Company's business operations. They provide strategic
guidance in the Company's operations.

* Definitions provided by the Financial Supervisory Commission of Taiwan● Enhance Board Operating Efficiency to Strengthen
Management Mechanisms
The Company's Board Performance Evaluation shall be conducted inaccordance with the "Regulations for Evaluating the Performance of
the Board of Directors" each year. In addition, an external independent
professional institution or a panel of external experts and scholars shallbe appointed to conduct the Board Performance Evaluation at least once
every 3 years. The Company has appointed an external professional andindependent institution for the 2019 performance evaluation of the Boardof Directors in 2020. The 2020 self-evaluation of the Board of Directors
was also completed before the end of the first quarter of 2021. The overall
performance of the Board of Directors was deemed as effective.
41

4.2 Enhancing the Board of
Directors' Functions

About theESG Report

Strategic Steering Committee• Delta Electronics Board of

A Word from
the Management

Overview

Sustainable
Management

Compensation Committee• Delta created the Remuneration

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Audit Committee• The Company set up an Audit Committee which is composed of all

Directors' members and operations

Committee to facilitate the link between

Independent Directors in accordance with regulations. Meetings areteam jointly formed an operations

the compensation of Directors andconvened at least once each quarter and ad-hoc meetings are held

strategy management committee

managers and the corporate operations

whenever necessary. The Audit Committee performed key tasks inthat regularly holds strategy

performance to decide the ratio of2020 including supervising of the Company's financial statements,

meetings to analyze and discuss

dividend distribution. The Committeechoosing accountants for their independence, effectively implementing

material issues of the Company.

gives compensation policy suggestions

internal controls, ensuring that the Company follows relevant laws

based on industry competition, corporate

and regulations, and assessing possible and potential risks to theoperations performance, and the market

Company. Meetings of the Audit Committee are convened at least

Directors and global regional

rate to construct a company-level

once every quarter and 5 meetings were held in 2020, with an averagemanagers participate in strategy

compensation policy.

attendance rate of 95%.

• Every year, the Independent

meetings on the Company's
institutions, regions, and• Delta participates in industry and• Besides submitting the audit report to each Independent Director on

technology. These meetings

consulting company salary surveys anda monthly basis, the Supervisor of the Internal Audit Department isadjust strategic development andevaluates how Delta's compensation

also responsible for reporting any material internal control findings

improve operational performancecompares with the current market.

to the Audit Committee and meetings of the Board of Directors.

in response to market changes andrapid technological progress.

The Independent Directors discuss the important findings in the• Delta based its incentive system on

Company's internal control and management with only the internal

specific compensation issues with the help

audit manager, and discuss the governance matters in the Company'sof external HR consulting firms

audited or certified consolidated financial reports (annual reports andindividual financial statements) with the CPA, at least once every• Annual employee dividends amounts arequarter. Related communication status including the methods, items,

determined after the Board of Directors

and results of communication are disclosed on the Company's website

agrees with the suggestions of theunder "Communication between Independent Directors, the Chief

Shareholders Meeting and are publishedInternal Auditors and CPAs".

in the Company's annual reports.
42

Appendix

4.2 Enhancing the Board of
Directors' Functions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Corporate Governance Officer

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

regions across the world implement active disease prevention measures. The Commander
in Chief reports the overall development of the COVID-19 epidemic across the world,• The Company's Board of Directors resolved on April 29, 2019 to create the post of the
Corporate Governance Officer and assigned the Director of the Company's Financenumber of employees tested positive, and disease prevention materials in each meeting of
the Board.

Department to fill the role. The Corporate Governance Officer must have at least 3
years of experience as a manager of stock affairs and corporate governance in publicInformation Security Management:

companies.

Delta has created an information security management structure and adopted rigorous• The Company's Corporate Governance Officer has implemented related operations

information security systems and comprehensive information security management

for the duties of the office in 2020 (1. matters related to the meetings of the Board ofprocedures. The Chief Information Officer periodically reports the information security

Directors and shareholders' meetings; 2. preparation of the minutes of board meetings

implementation results to the Board of Directors each year. The Chief Information Officer

and shareholders' meetings; 3. assistance in the appointment and continuing education

reported Delta's information security implementation status and future plans to the Boardof Directors; 4. provision of the information necessary for Directors to conduct business;of Directors on July 29, 2020 and the report included 4 major topics: (1) common attacks

5. assistance for Directors in legal compliance; and, 6. other matters stipulated in theand threats against companies, (2) Delta's information security strategy, (3) improvement

Articles of Incorporation or the contract). The Corporate Governance Officer completedof employees' information security awareness, and (4) enhancement of information

30 hours of continuing education from the date of appointment to 2020.

security infrastructure.

Intellectual Property Management:

Reports of Materials Issues to the Board of Directors

The Company is committed to the development of advanced technologies andimprovement of product competitive advantages. We created a smart property

Risk Management Policy:

management system to protect the R&D results and reduce operational risks, and

The Company's Board of Directors passed the "Delta Risk Management Policy" in 2020.

provide guidance for decision making and execution for all Delta units when they process

The group has identified risks factors including strategic, operational, financial, hazardous

intellectual properties. In addition, we applied for trademark registration for the Company's

events and compliance. Responsibility of departments for each risk factor is identified, andbrand and main business logos within the marketing scope to protect the Company's

each department shall implement a sound risk management mechanism. The CEO or an

brand value and ensure comprehensive protection of the Company's brand. The Company

individual designated by the CEO reports the Company's risk management operations toreported intellectual property matters to the Board of Directors on October 28, 2020.

the Board of Directors once a year.
In response to the COVID-19 epidemic, Delta's management team established the Global

4.2.2 Ethical Corporate Management

Disease Prevention Command Center at the end of January 2020 and quickly announced
the "Delta COVID-19 Disease Prevention Plan" to all manufacturing plants and operations

Ethical corporate management is a core value of Delta and is part of its corporate DNA.

across the globe. We also created regional disease prevention teams in Mainland China,

It is deeply rooted in Delta's corporate culture and systems. In 2020, Delta amended theSoutheast Asia, Northeast Asia, Europe, and the Americas. The highest-ranking officers

Corporate Governance Best Practice Principles and assigned the Human Resourcesin the region served as the commanders of the teams. Delta's Global Disease Prevention

Division to take charge of implementation. The Human Resources Division and the Legal

Command Center actively monitored the development of the epidemic and helped all

Affairs and Intellectual Property Division are jointly responsible for the establishment434.2 Enhancing the Board of
Directors' Functions

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendixof the ethical corporate management policies and the Auditing Division is responsible

3. Improper charitable donations or sponsorshipfor supervising its implementation. They ensure that the Company prevents unethical

4. Offering or acceptance of unreasonable presents or hospitality, or other improper

conduct, regularly review implementation results, and continue to make improvements forthe implementation of ethical corporate management policies.

benefits
5. Misappropriation of trade secrets and infringement of trademark rights, patent rights,
copyrights, and other intellectual property rights

Establishment of the Ethical Corporate Management Policy System

6. Engaging in unfair competitive practices
7. Damage directly or indirectly caused to the rights or interests, health, or safety

Actions to Prevent:of consumers or other stakeholders in the course of research and development,

1. Offering and acceptance of bribes

procurement, manufacture, provision, or sale of products and services

2. Making illegal political donations

Preventive Measures:
Regulations and Measures

Effectiveness

Delta Group of Conduct

Governs all Delta Members and establishes standard operating procedures and a code of conduct for ethical behavior.

Signature of the Fiduciary Duties and Integrity Clauses

New employees are required to sign the fiduciary duties and integrity clauses.

Reporting Conflicts of Interest

To implement the Code of Conduct and avoid conflicts of interest, all current employees are required to report conflicts ofinterest. 8,515 employees actively completed the report or provided records of kinship relations this year.

Fair Competition Principle

Comply with all laws and regulations of countries in which the Company operates and conducts business including the,competition laws, laws, and other laws established to promote fair competition and maintain trade order to maintain faircompetition in the market.

Management Measures for the Job Rotation Regulationof Specific Positions

Delta established the job rotation mechanism for specific positions in Mainland China to reduce supplier management risks.

Management Measures for the Whistle-blowing System

The measures allow employees and other whistleblowers to report any illegal activities or violations of the Corporate
Management Best Practice Principles. The Company maintains strict confidentiality of reported information to protect
whistleblowers from retribution or inappropriate treatment

Management Measures for Reward and Discipline

Delta further regulated the disciplinary actions for the breaches of the Corporate Governance Best Practice Principles toclearly requested employees to comply with the principles.

Ethical Corporate Management Risk Assessment andPrevention Regulations

The Company implemented internal control self-assessments this year and requested business and functional units to fill out
the risk assessment table totaling 33 items (the completion rate was 100%) and implement management measures. Deltaalso updated self-assessment documents in accordance with related internal and external audit information.

"Related Party Transaction Management Internal Control
Operations""Insider Trading Prevention Management and Control
Operations""Procedures for Handling Material Inside Information"
44

These regulations provide suitable channels for Directors and executive managers to actively explain any potential conflict ofinterest with the Company.

4.2 Enhancing the Board of
Directors' Functions

About theESG Report

Ethical Corporate Management System

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Six Major Categories of Delta's Code of Conduct

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

In 2020, Delta did not have lawsuits and losses due tocorruption, nor lawsuits and losses due to the violation of
the competition law.

Ethical Corporate Management

Training

Implementing Ethical Corporate
Management Training

6

1

Training andwhistle-blowing
channels

Avoid
conflicts of interest• New employees take online courses on ethical corporate

Supplier Management

Audit and Whistleblowing

management on their first day in Delta to ensure they5

6 Major2

Maintenance of
the work
environment

Principles ofDelta's Code of
Conduct

Transactions
with business
partners

to-face ethical management courses held irregularly.
• Ethics and integrity are included in the evaluations ofvalues and capabilities in employees' performance

Risk Assessment

Code of Conduct

understand related requirements.
• Employees attend re-train courses each year and face-

4

3

Protection ofcompany assets

Interactions withgovernment
authorities

appraisal.
In the ethical corporate management courses this year,
58,705 participants completed training on Delta's Codeof Conduct and the completion rate was 84.2%. 9,177

Policies

participants completed training Taiwan site and thecompletion rate was 95.7%. A total of 4,452 participants
across the globe took part in face-to-face and online
courses on ethical corporate management.

"Ethical Corporate Management Risk Assessment and Case
Studies" course for Directors and senior executives in 202045

4.3 Innovation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

4.3 Innovation

Strategic Direction

Commitments

KPI■ Innovative corporate culture

Investment in innovation and R&D ofRatio of Innovation and R&D to Delta's
Total Revenue■ Focus on enhancing the energy> 8% of Delta's total revenue

efficiency of core products■ Develop new technology andestablish Delta Research Center

Key Initiatives for Alignment
with SDGs
In response to the risks of global warming and■ 2020 Performance
9.01%■ 2020 Target>8%

Achievedclimate change, Delta continues to invest in
product R&D and technological innovation tocontribute to humanity’s sustainable survival anddevelopment. Delta's corporate culture emphasizes
innovative R&D and the Company has established■ 2021 Target>8%

R&D Centers across the world. We invested 9.01%
of total revenue to R&D and innovation in 2020.

■ 2025 Target>8%

Delta's internal innovation mechanisms

Delta Research Center

Intellectual property rights applications and latest
46

technology strategy activities

4.3 Innovation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

4.3.1 Delta's Internal Innovation Mechanisms

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

With regard to proposed improvements for main plants in China, 314 proposals were filed
in 2020 and 312 cases were completed. The implementation rate was 99.4% and overall

Delta Innovation Awards

benefits amounted to 6.22 MUSD. The table below contains statistics for green production
benefits* in main production plants in China.

To reward outstanding accomplishments and to cultivate a culture of innovation, Deltaestablished the Delta Innovation Awards in 2008, with the management team serving
as members of the judging committee. The annual awards are designed to encourage
employee innovation across the globe as well as to reward exceptional innovation. The
12th Innovation Awards in 2020 included four grand prizes for "Patents", "New Products,""Production," and "New Business Models and Processes." The "Patent" award included"Excellent Patent Planning," "Outstanding Contribution Award," and the "Elite Designer
Award."
These awards are designed to recognize individual and team development and toestablish patent planning for commercial value. Employees from across the globe filed 51
projects for the "Delta Innovation Awards" this year. The number of submissions was thehighest in history and it demonstrated Delta's sustained commitment and capabilities for"innovation" across the world. In the final round, the judges decided to present the highest
awards to 6 teams and 13 individuals. As of the end of 2020, 69 teams and 45 individualawards have been presented with over 2.2 MUSD in incentives.

Idea Bank
Beyond improvements in energy savings, our main plants also continue to implement
green production measures in the processes of optimization, automation, processsimplification, jig optimization, and logistics improvements. At the same time, 6 Sigma
projects have been combined to actively advance R&D and process innovation. For
example, the Idea Bank was set up at Delta's Wujiang Plant in China to encourage theproposal of innovation improvements, which in turn enhance overall productivity. A total of
2,110 innovative ideas were proposed in Wujiang and Wuhu plants in China in 2020 andrewards totaling 7,871 USD were distributed for savings amounting to 623,000 USD.

Due to the impact of the COVID-19 epidemic, the 12th Delta Innovation Award ceremony was hosted
online.

47

About the
ESG Report

4.3 Innovation

A Word from
the Management

Sustainable
Management

Overview

Statistics on Green Production Benefits in Plants in China
Project Type

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Total Number of Patents

Improvement Measure

2018

2019

2020

Automation
control

Introduction of Delta Smart
Manufacturing (DSM)
equipment and Product Quality
Management (PQM) system

18.3

13.2

6.17

Process
optimization

Tool optimization andmanagement system

16.4

1.2

0.04

Cumulative Number of Patent Granted with
Incentives Given

Cumulative Incentives Given for Patent Granted(USD)

Cumulative Number of Patents Proposal with
Incentives Given

Cumulative Incentives Given for Patents
Proposal (USD)

6,315

3,437,035

5,719
5,173

Process
simplification

Smart logistics

2.5

1.5

0

Tool optimization

Process simplification andrefurbishment

0.9

0

0

Comprehensive Lean Six Sigma(LSS) improvements

0.9

1.8

0.01

39.0

17.7

6.22

2,544
2018

Logistics
improvements

Total savings and benefits (MUSD)

2,818,318

2,918
2019
Patents

2020

303,995

376,706

461,874

2018

2019
Bonus

2020

Total Number of Granted Patents and Certificates

10,1199,345

4.3.2 Intellectual Property Rights Applications andLatest Technology Strategy Activities
Patent Applications and Awards
To encourage employees to focus on R&D and proactively apply for patents from patentoffices in Taiwan and other countries of the WTO, Delta has established Intellectual
Property (IP) Patent Incentive System Procedures and assisted its businesses in compiling

48

3,094,349

3,271

10,989* The calculation of benefits takes into account manpower, wages, and cost savings before and after
the implementation of improvements.

a risk map for IP rights. As of 2020, a total of 10,989 patents have been approved.

Appendix

2018
2019
2020
Cumulative Granted Patents andCertificates since 2011

4.3 Innovation

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

4.3.3 Delta Research Center
Delta Research Center was established in 2013. Under the leadership of the Chief
Technology Officer, the Center focuses on smart manufacturing, digital collaboration, andlife sciences, and develops a wide range of integrated smart solutions for software andhardware that support the innovation and transformation of companies and partners in theecosystem. Delta Research Center established R&D Centers, Integration Centers, andTest & Verification Centers in Beĳing, Xi'an, Wuhan, Taipei, Tainan, and Singapore to beclose to industrial centers. We use applications and feedback from the market to continue
to optimize core technologies and create market value with technologies.
The Center works closely with industries, government, academia, and research
institutions, and compiles information based on different viewpoints of each sector to
support the future development of the industry. Delta actively participates in associations
and industry organizations to support policies and establish standard regulations. In
addition, we also work with renowned universities across the world such as National
Taiwan University, Tsing Hua University, Peking University, Hubei University of Technology,
Nanyang Technological University, and Singapore Polytechnic. We have implemented
multiple industrial-academic research programs to pass down knowledge in the industry,train professional AI and smart manufacturing talents, and uncover a wide range of
research targets. In response to rapid changes, Delta Research Center maintains an open
attitude and continues to work with partners in the ecosystem for joint development of theindustry.

Technology Strategy Meetings and Forums
Delta organizes regular technology strategy meetings and technology forums to learn
the latest technologies and connect with the world. The most important new technology
forums and technology strategy meetings are described below:

49

About the
ESG Report

4.3 Innovation

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Number ofParticipantsSessions

Appendix

Statistics of Important New Technology Forums and Technology Strategy Meetings
Type

Event

PurposeCloud Activation of Smart Future Hsinchu Science Park Bureau CrossSector Innovative Technology Forum

Delta shared its cloud and edge computing solutions and success stories in
the Cross-Sector Innovative Technology Forum organized by the Hsinchu
Science Park Bureau.

150+

1 round

Smart Manufacturing of the Future
Forum - PCB and the Rebirth of Smart
Manufacturing in the Electronics
Industry

Delta was invited by the Taiwan IOT Technology and Industry Association(TwIoTA) to share case studies of Delta's incorporation of AI applications in theforum.

150+

1 round

Participated in the China Enterprise IT Award (CEIA) Summit in Beĳing todiscuss smart manufacturing, digital transformation, and practical operations in
the electronics industry in the post-pandemic world300+

1 round

Participated in the 2nd Medical Equipment Development Summit and online
exhibition of key components to analyze technologies in related industries withexperts

100+

1 roundAlliance of Industrial Internet Conference
Technical exchanges in the Industrial Internet Conference in Beĳing to share
and Alliance Renewal Conference insmart manufacturing applications and visions
Beĳing100+

1 round

China Software Testing Center Annual
Technology Conference

Exchanged ideas in the China Software Testing Center Annual Technology
Conference and shared AI applications in smart manufacturing

150+

1 roundTechnology Strategy Meeting

Communicated and discussed the latest DRC technologies and strategies with
Delta's internal departments

150+

1 round over 2 days

NTU Research Project Workshop /Meeting

Organized technology R&D discussions and published results of industrialacademic cooperation with NTU professors

100+

2 rounds over 2 days

Participation in meetings of the Alliance of Industrial Internet to discusstechnologies with experts in attendance

800+

4 rounds over 4 days

160+

4 rounds over 3 days

China Enterprise IT Award (CEIA)
Technology Summit

Forum
2nd Medical Equipment Development
Summit13th, 14th, and 15th Working Group

Technology Meetings of the Alliance of Industrial
StrategyInternet (AII) in China and participation
Meetingin the Industrial Internet Achievements
Exhibition

Fujian-Taiwan Joint Technology Training
Participated in the Fujian-Taiwan Joint Technology Training Program for
Program for Teachers of Scienceteachers of science and technology to discuss artificial intelligence and smart
and Technology organized by Fujian
manufacturing
Province50

About the
ESG Report

4.4 Transcending Customer
Expectations

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

4.4 Transcending Customer Expectations

Key Initiatives for
Alignment with SDGs

Strategic Direction

Commitments

Strengthen product functionality and service based on gap

By integrating its core competency in power and electronics

analysis of client satisfaction to increase client's trust in

and developing advanced energy conservation technology,

Delta's products.

Delta provides cleaner, more effective, and more reliable
thermal power solutions to conserve more energy for its
customers. The Company also focuses on reducing resource

Help brand customers develop products andconsumption and greenhouse gas emissions to create moreparticipate in iconic exhibitions to promotevalue for customers.

Delta's solutions

KPI
Customer Satisfaction Score■ 2020 Performance
87.3

*1

Achieved

Improve customer relationship management

Ratio of Total Customers Using
Online Services Solutions/Sales
Platform *1

Ratio of Revenues Generated
Online*1■ 2020 Performance
98.81■ 2020 Performance
99.84

Achieved■ 2020 Target87■ 2020 Target98■ 2020 Target99■ 2021 Target88■ 2021 Target98■ 2021 Target99■ 2025 Target90■ 2025 Target99■ 2025 Target
99

Achieved* 1 Main targets of the survey consisted of customers who accounted for the top 80% of procurement from Delta in 202051

4.4 Transcending Customer
Expectations

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

4.4.1 Collaborative Development and Participation in Iconic Exhibitions
Delta uses efficient power management solutions, cooling system solutions, and green
data center solutions to attract customers for the brand and jointly develop next-generationenergy-saving products. For instance, Delta assisted Dell in the development of the 80
Plus titanium-grade server power supply (with an average efficiency level of 96%). Delta
participated in Facebook's "Open Compute Project” for research into a 227V power supply
with 94.5% efficiency.
Delta also participated in several international exhibitions such as the Hannover Messe,
China International Industry Fair (CIIF), Consumer Electronics Show (CES), and
COMPUTEX. We interact closely with customers to promote Delta's latest energy-efficient
products, solutions, and innovative technologies and help customers enhance theircompetitiveness in the industry. Delta also fully utilizes the advantages of our green energy
and energy-saving products for full system integration. Our environmental exhibitions andgreen buildings attract customers to come for consultation regarding energy-saving andcarbon reduction business opportunities.

Delta EV Charging Station Yokohama: Creation of a Brand-New
Green Energy Business Model
Idemitsu Kosan Director Atsuhiko Hirano (right) and General Manager Chin-Hsing Ko of Delta Japan
unveil the EV Charging Station Yokohama

Delta and Idemitsu Kosan, an energy company in Japan, created the "Delta EV Charging
Station Yokohama" which made use of microgrid applications and smart energy
Yokohama as a partner site for municipal disaster response.

New Taipei City Energy Conservation PFI Project: Long-Term
Partner for Smart City Infrastructure

We used the DeltaGrid® energy IoT solution and integrated Delta's commercial energy

In 2014, Delta won the Private Finance Initiative (PFI) project for phase 1 energy-saving

storage system and EV charging and discharging functions to provide electricity use

street light replacement and maintenance in 13 administrative regions in northern New

strategies and allocate energy based on different electricity demands. We also connected

Taipei City. This year, Delta won the 10-year phase 2 project for the same regions and will

the EZQC App EV charging payment system and the first Delta subsidiary brand Innergie

replace approximately 110,000 street lights in the area. The project is expected to reduceboutique coffee shop — Innergie CAFÉ — to provide business and retail IoT solutions andelectricity expenditures by approximately NT$150 million for New Taipei City over a period

other commercial applications. We thus created a new business model for the charging

of 10 years.

management and was selected by the Climate Change Policy Headquarters, City ofstation that meets green energy development trends.
52

4.4 Transcending Customer
Expectations

About theESG Report

A Word from
the Management

A total of 8,500 street lights are located in areas where

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

4.4.2 Improving Customer Relationship Management

it is difficult to file maintenance reports. They are thus
upgraded to smart street lights that connect to the Internet

Customer Satisfaction Survey

and the city government's real-time management system
to improve their maintenance efficiency. The advanced

Delta has sought to achieve a deep understanding of customer requirements and issues through observation of user

smart shared pole design suitable for diverse applications

operating environments and usage habits. We seek constant improvement to find the most appropriate solutions, andcan be used for future expansion of comprehensive smart

make it a point to gather the responses of customers and end users through focus groups, individual interviews, and online

city infrastructure.

questionnaires. The results are given an in-depth analysis of their needs and expectations, which is then used to improvethe basis for technology research and development, system design, and program development.

Delta began developing the smart LED street light projectin 2010 and won the largest PFI project at the time —Delta gladly accepts customers' quarterly business reviews (QBR), while taking the initiative to issue questionnaires on

New Taipei City energy-saving street light replacement

customer satisfaction. We then continue our improvements based on customer feedback. Delta engineers are encouraged

and maintenance project in 2014, which has saved

to communicate directly with customers. This allows engineers to understand customer issues at the product design

approximately 1.11 billion kWh for New Taipei City over 6

phase, while also gaining an accurate understanding of end-market demands and exceeding customer expectations

years.

through consultations and recruiting experts from a variety of industries.
To achieve an in-depth understanding of customer satisfaction with Delta's products and services, we organize annual
customer satisfaction surveys and use the results of the evaluation and surveys as an important basis for improving
customer relations. We analyze surveys for intensified interactions with customers to explore potential market opportunities
and improve product design to meet customer demands and build win-win cooperation.
The main targets of the survey consisted of customers who accounted for the top 80% of procurement from Delta in 2020.
We distributed customer satisfaction questionnaires and accepted customers' QBR. We sent 156 questionnaires andrecovered 106 copies with a recovery rate of 67.9%, and then calculated that the average satisfaction rating for customers
in 2020 was 87.3 points, which met the target of 87 points. Due to the impact of the COVID-19 epidemic, the coveragerate this year was lower than the coverage rate in 2019. Many new customers in new markets have appeared as Industry
4.0 progresses. There have been significant changes in customer industry types and Delta has noted the potential forInternet and telecommunication customers. To collect feedback from these potential customers, we will change thecustomer satisfaction questionnaire from letters to an online customer satisfaction survey starting from the 4th quarterof 2021. The customers that we have engaged in transactions in the current year will be included as targets of surveys.
We seek to systematically expand the scope of the survey, explore the true causes of customer dissatisfaction, uncover

Delta won the Phase 2 PFI Project for energy-saving street lights
in northern New Taipei City to provide energy-saving street light
replacement and maintenance services for the next 10 years

potential demand, and identify more opportunities for providing services to customers. In China, for example, at the 17th
Data Center Infrastructure Technology Summit and User Satisfaction Survey Announcement Conference in 2020, Delta
53

4.4 Transcending Customer
Expectations

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

won awards such as: User Satisfaction Brands Awardfor ten consecutive years, Satisfaction Brand Award, andTechnological Innovation Award.

Distributor and ASP Service ISO 9000
Quality Certification
Delta seeks to maximize customer satisfaction. To
provide customers with consistent services, we ensure

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendixwith reference exchanges. Realizing the strong market

KPI

potential of Mainland China and India, Delta has

Services and operations conform to ISO 9000
standards

established an ERP customer relationship management
system. This system utilizes previous efficient, effective,
and high-quality customer interactions to anticipate■ 2020 Target
20%■ 2021 Target
35%■ 2020 Performance
20.6% Achieved■ 2025 Target
70%

customer demands and exceed their expectations.
Our distribution partners across the world have become
Delta's global market vanguard. With our industrialthat both authorized service partners (ASPs) andautomation products, we have over 1,500 distributors

authorized distributors have the same quality management

across 5 continents that help provide customer businessconsulting services, product installation, technical support,

capabilities as Delta. Delta started to communicate its
quality management policy to existing distributors and
ASPs in 2020 to ensure that the services and operations of

Customer Communication Channels andCustomer Service Knowledge Platformproduct training, and other services, all of which effectively
convey Delta's brand value and corporate mission. We
regularly hold activities with our distributors, including

ASPs and distributors are consistent with Delta standards
To maintain customer interest, Delta provides a variety

those in India, North America, South America, Mainlandof communication channels to customers. This includes

China, and Europe. To maintain close relationships, we

As of 2020, Delta has implemented operation standard

our official website, service hotline, and email. Pursuant

share with our distributors overall market trends, productsurveys based on ISO 9000 standards on existing

to customer feedback and quality websites, Delta's

planning, and after-sales service, and reward outstanding

distributors and ASPs. The results showed that 20.6% ofbusiness units have stipulated administrative mechanisms

sales partners. No material client grievances or complaints

the distributors had obtained ISO 9000 certification and weto process the issues appropriately. For example, in

occurred for Delta in 2020.

aim to increase the compliance rate of ISO 9000 operation

Mainland China, the Delta subsidiary Delta Greentech

standard each year. We will use incentives, audits, andhas already constructed 48 subsidiary offices and service

evaluation systems for distributors to include ISO 9000

centers, which allow our technical personnel to respondcompliance into the criteria for new partnerships in 2021.

to customer inquiries within 2 hours and provide required

We will also implement an ISO 9000 Quality System Audit

services within 48 hours.

for providing customers with good service quality.

(QSA) on existing ASPs and our aim is to reach 35% by
2021.

54

Client Confidential Information
Protection
To ensure effective customer information management
through a single system, we implement strict authorization

To provide customer service personnel with evenmanagement and control strategies and procedures

more comprehensive professional capabilities, wefor customer access. We deployed related data loss

have established a customer knowledge platform thatprevention (DLP) software across the world and executed

accumulates technical product information, project

related measures required by ISO 27001. We obtained

opinions, accident analyses, and professional repair

ISO 27001 Information Security Information Certification inexperience information, and have provided employees

2018.

About the
ESG Report

4.5 Supplier Sustainability
Management

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

4.5 Supplier Sustainability Management

Strategic Direction

Commitments■ Establish short and medium-term objectives and formulate specific

Delta views its suppliers as long-term partners. We

measures for effective promotion and implementation

Key Initiatives for
Alignment with SDGs

believe that competitive quality, technology, delivery■ Regularly identify high-risk suppliers and request them to conductand cost are also requirements for a supplier.

audits and implement improvements within specified deadlines andHowever, we will also place great value on aspects

lower risks to medium or low risk levels

such as governance, the environment, and society,■ Comply with the Supply Chain ESG Policy and implement theso that suppliers become partners in our promotion

corporate mission of "To provide innovative, clean and energy-of the sustainable development of the value chain.

Localized management

efficient solutions for a better tomorrow"

KPI

Supplier certification and risk management

Tier1 Supplier ESG Survey
Response Rate

Supplier Improvement Rate

Cumulative No. of Suppliers under
the ESG Coaching Program■ 2018 Performance
60%

Achieved■ 2018 Performance72%■ 2018 Performance8■ 2019 Performance
67%

Achieved■ 2019 Performance83%■ 2019 Performance8■ 2020 Performance73%

Achieved■ 2020 Performance84%■ 2020 Performance24■ 2020 Target70%■ 2020 Target80%■ 2020 Target24■ 2021 Target80%■ 2021 Target80%■ 2021 Target30■ 2025 Target95%■ 2025 Target85%■ 2025 Target
80

Supplier sustainability engagement55

4.5 Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

4.5.1 Overall Measures for Supplier Sustainability Management
Delta Supply Chain
Suppliers work with Delta as our most important strategic cooperation partners. In addition to providing customers with valuable products and services, we also focus on social andenvironmental values by actively fulfilling our corporate mission "To provide innovative, clean and energy-efficient solutions for a better tomorrow" as we work toward creating asustainable supply chain. Delta jointly bears social and environmental obligations with the supply chain on the basis of cooperation. Delta's suppliers include suppliers of materials/
components, agents, and contractors. Manufacturing suppliers are located in the regions of Delta's main production sites including Mainland China, Taiwan, Thailand, and other countries.

Supply Chain ESG Committee
The Company established the Supply Chain ESG Committee to effectively implement sustainable management for the supply chain and integrate Delta's global procurement systems.
The Committee is chaired by the Director of the Supply Chain Management Division and members are comprised of procurement managers of business groups. The Committee
assigned an executive secretary to take charge of planning and implementing project activities and the Corporate Sustainability Development Office serves as the consulting team. The
6 major project categories include "amendment of rules/management regulations", "supplier evaluation", "procurement platform function enhancement", "waste reduction management","communication and education", and "special issue management". We convene the Committee regularly to promote projects and review progress.

Supply Chain ESG Committee
Chairman : Director of the Supply Chain
Management Division

Executive Secretary
BG Materials Top Supervisor
Corporate Sustainability Development Office

Policy / Regulations /Management Methods

56

Supplier
ESG Evaluation

Environmental
Performance
Enhancement

Special Topics
Management

EC Platform
Strengthen
Functionality

Communication and
Education

4.5 Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Supply Chain Management Procedures
Delta's supply chain management includes selection and recognition of new suppliers, continuous ESG risk management, and performance evaluation. The targets include suppliers ofmaterials / components, agents, and contractors.

Stage 1

Selection and Recognition of New Suppliers
New material suppliers must have ISO 9001 certification and meet requirements for environmental management substances. We encourage suppliers to obtain ISO 14001
certification. Only suppliers that pass onsite audits for procurement, quality, technology, and hazardous substances can become official suppliers of Delta.
Delta's procurement contracts include product liability and confidentiality clauses as well as the Supplier Code of Conduct- Responsible Business Alliance (RBA) Code of
Conduct on environmental protection, conflict minerals, fair competition, and anti-trust.

Stage 2

Continuous ESG Risk Management
Delta continues to implement tiered management of suppliers. We use survey forms and documents for the first round of document audit to investigate potential risks ofthe supplier in labor, health and safety, environment, ethical conduct, and management systems, and evaluate the ESG risk ratings and ESG capability ratings. We also
distribute the survey form for conflict minerals to complete our due diligence investigation for conflict minerals in the supply chain.
We use the risk map to identify high-risk suppliers. Delta uses systematic tracking, on-site audits, and requests for improvement based on the categories of high-risk issues
and the level of urgency. Delta will make use of its extensive ESG experience to create training materials to be shared with critical suppliers.

Stage 3

Performance Evaluation
To incorporate ESG sustainability performance as incentives, Delta implements the Quarterly Business Review (QBR) for technology, quality, service, lead time, and cost,and selects the Most Valuable Partner (MVP) and Most Improved Partner (MIP) based on the suppliers' ESG risk rating and capabilities. We seek to use the influence of
the Delta brand to power the continuous improvement of our supply chain.

57

4.5 Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

4.5.2 Ratio of Localized Procurement and Materials
Localized Management
Delta's products and services cover 3 major areas including Power Electronics, Automation, and Infrastructure. Delta's suppliers are divided into 3 types: production-related directmaterials, non-production-related indirect materials, and labor. For historical purchasing expenditures, direct materials constitute the major proportion, accounting for 96% in 2020. Thereare 3 types of direct material suppliers: raw material or component suppliers, agents, and outsourced suppliers. High-volume suppliers, critical component suppliers, non-substitutablesuppliers, and suppliers who provide materials for cross business groups are defined as critical suppliers.
In recent years, Delta has focused on R&D and innovation of core technology and products, and the Company has rapidly expanded its role as a solution provider through M&A and
by integrating its own professional competencies. The scale of Delta's supply chain continues to expand. The percentages of global and local procurement of direct materials for major
production sites in Mainland China, Taiwan, and Thailand are shown in the table below.

Types and Procurement Ratio of
Direct Material Suppliers

Distribution of Global Procurement Rate

Localized Procurement Distribution Rate *

1%
45%

3%

24%

31%
16%

47%

96%
8%
14%

Materials components suppliers
Agents

Mainland China

TaiwanMainland China

Thailand

OthersThailandOutsourced* Local procurement refers to the procurement of products made by suppliers' plants in the same country as the Delta plant that uses the products.

58

Taiwan4.5 Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Materials Management

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendixquestionnaires based on the nature of suppliers, RBA high-risk issues, and subsequent
management goals. We also provide the survey in traditional Chinese, simplified Chinese,

The main materials used by Delta include: metals, plastics, chemicals, packaging or

English, and Thai. Delta’s Supply Chain ESG Committee also organized webinars tobuffer packaging materials, and other materials. Renewable materials accounted for 32%

communicate directly with suppliers and help them understand Delta's expectations, theof the weight of wooden boxes, pallets and cartons in 2020. Recycled paper accounted

importance of ESG, and requirements of the questions.

for 96% of all paper packaging materials. Based on the weight of procured materials
in 2020, metal materials accounted for approximately 63.6%, packaging materials

Analysis and Results of the 2020 Questionnaire

accounted for approximately 20.7%, plastic materials accounted for approximately 14.1%,
organic solvents accounted for approximately 1.1%, and other materials accounted for

The total response rate of the 2020 ESG Management Survey was 73%. According

approximately 0.5%.

to the analysis results of the ESG levels, 46% of the suppliers are highly sustainable,
which means that these suppliers' risk management and ESG capabilities are at a higher
level, belonging to the category of suppliers that Delta can further collaborate in the

4.5.3 Supplier ESG Risk Assessment and Due
Diligence Research on Conflict Minerals

sustainability field; 23% of the suppliers are suppliers of great concern, which meansthat these suppliers' risk management and ESG capabilities are at a lower level, andthey require special attention while Delta needs to take countermeasures accordingly. In

Supply Chain ESG Risks

addition, 8% of the suppliers are highly potential ones, which means that these suppliers
have great risk management capability, but their ESG capability still need to be improved,

Delta has refered to the Responsible Business Alliance (RBA) Code of Conduct as ourso they can prioritized to receive Delta's counseling and guidance in the future.

main framework and uses labor, occupational health and safety, environment, ethics,
and management systems to promote the sustainable development of suppliers. We use

Supplier Rating Distribution Tablethe "Delta Supplier Code of Conduct" as an important guide to encourage compliance byDelta uses the "Delta Supplier Annual ESG Management Survey" for management andSuppliers under observation

risk assessment to learn about the suppliers' RBA implementation and possibilities forpromoting sustainable development, and identify possible opportunities. The distribution
targets are tier 1 suppliers with whom we have continuous transactions including product

ESG Capacity Rating

suppliers.

Suppliers with high continuity

Risk Management Rating

manufacturers, branch companies of manufacturers, external processing manufacturers,
agents, and service companies. Due to the high number of suppliers, Delta completes thesurvey for all targets over a period of 3 years.
Suppliers of concern

Suppliers with high potential

The "Delta 2020 Supplier ESG Management Survey" included labor, occupational
health and safety, environment, ethics, and management systems. We designed the59

4.5 Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Based on the analysis of the performance of risk management in various aspects, and theaverage percentage of deficiencies in the labor aspect is relatively high, and the average
percentage of deficiencies in ethics is low, indicating that high-risk issues are mainly in thelabor aspect. In addition, 15% of the suppliers failed to score a point points in this aspect,which covered issues, including the absence of human rights protection-related policies
and employees' overtime hours. The Company will conduct follow-up and audit andrequest suppliers involved to submit a correction plan subsequently. The proportion of the
suppliers who have introduced Validated Assessment Program (VAP) of the Responsible
Business Alliance (RBA) on their own accounted for about 5.4% of the valid copies ofquestionnaires.

Conflict Minerals - Percentage and Distribution of Qualified
Refineries by Country -Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

Distribution of Qualified Smelters in the Supply Chain
Continent

Tungsten

Tin

TantalumGold

Cobalt

Total

Asia

21

40

30

60

29

180

Europe

6

3

6

38

5

58

North
America

6

3

4

10

1

24

South
America

4

10

1

4

0

19

Africa

0

0

0

2

4

6

Australia

0

0

0

1

1

2

Total

37

56

41

115

40

289

The Responsible Minerals Initiative (RMI) research discovered that the rebel groups in
the Democratic Republic of Congo and neighboring countries in Central Africa use forcedlabor, child labor, and other illegal means to mine tantalum, tin, tungsten, gold, and cobalt,

4.5.4 Supplier Audit Based on RBA Principles

and sell them in exchange for weapons, thereby causing regional instability. Minerals
obtained through illegal means are referred to as conflict minerals. These 5 minerals,

To lower ESG risks in the supply chain and to improve competitiveness, Delta began

known as 3T1G metals and cobalt, are important materials for electronic products.

providing RBA audits and mentoring in 2012. RBA audit and mentoring are provided forhigh-risk critical suppliers. Critical suppliers are selected based on the performance ofAccording to this survey, in 2020, Delta’s supply chain involved a total of 298 smelters. Of

materials in inventory, production process, and overall user-end quality. In January eachthem, 289 are on the latest list of qualified smelters; 8 have been removed from the list by

year, we make such choices based on the performance in quality, transaction volume,

the Responsible Minerals Initiative (RMI) due to their termination of business; the otherand environmental safety and health, or labor ethical risks and designate suppliers for key

smelter has no complete information to verify. The suppliers involved have been required

audits and improvements in the current year. As of 2020, Delta completed audits for 121

to confirm the information and make improvement within a time limit, and to switch to a

critical suppliers. Among the 50 critical suppliers for which audits were completed in 2020,

qualified smelter.

follow-up inspections were completed for 50 suppliers. The audit rate of critical suppliers
was 100%.

We have analyzed the distribution of qualified smelters in the supply chain, mainly in Asia,
followed by Europe.

During Delta's supplier audits, a total of 1,088 items were found in EHS requiring
improvement. Most of them were in particular management systems and occupational
health management. In terms of labor ethics, a total of 536 items requiring improvement
were found, mostly for particular management systems and overtime work.

60

4.5 Supplier Sustainability
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Delta asks suppliers to provide detailed improvement plans in response to identified issues, based on a plant's actual status, within two weeks after receiving an audit report that includes
the case closure date and the person responsible for case closure. The suppliers were required to respond to Delta based on the follow-up format in Delta's Audit Improvement Report.
Delta sets follow-up dates for verifying the suppliers' improvement conditions to ensure the continuous improvement of their ESG operations. In addition, Delta provides experience inintroducing and promoting Delta's ESG Management System as reference for suppliers. The supplier improvement rate with mentoring provided by Delta was 84% in 2020.

4.5.5 Supply Chain Environmental Performance and Water Risk Identification
Supply Chain Environmental Performance
To fulfill our corporate mission "To provide innovative, clean and energy-efficient solutions for a better tomorrow," Delta continuously cooperates with suppliers to reduce carbon emissions.
This not only lowers operational costs for both Delta and the supplier, but also increases the competitiveness of the entire supply chain.

Supplier Waste Reduction Partnership
Partnership Item

Abstract

Quantitative / Qualitative Results

Take Dongguan and Wujiang plants as an example, in 2020, the recycling of
Packaging Materials Recycling

Delta cooperates with major processing factories topackaging materials saved a total of US$1.876 million, of which vacuum forming

recycle packaging materials such as EPE, paper, andmaterials accounted for around 38%, spools around 29.5%, plastics and plastic

more.

pallets 12.2%, paper 11.5%, and plastic boxes around 8.7%. By quantity, 1.473
million pieces of vacuum forming materials and 1.03 million pieces of paper were
saved.

Repetitive Use of Carriers (Plastic

Delta cooperates with local mechanism suppliers to use

For instance, Dongguan Plant, Wujiang Plant, and plants in Taiwan saved 2.076

Frames)reusable carriers (plastic frames) for transporting plastic

million cardboard boxes in 2020, saving up to approximately 1.182 MUSD in

casings and materials in place of cardboard boxes.

packaging costs.
In the case of Dongguan Plant, Wujiang Plant, and plants in Taiwan, wood strings

Pallet Recycling and Reuse

Delta works with local suppliers to use recycled

and wooden panels in pallets are recycled, saving 589,599 USD in pallet costs.

foundations and battens of wooden pallets.

Incentives for recycling totaled 14,000 USD and we recycled approximately
85,308 pallets.
61

4.6 Information Security
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Supplier Water Risk Identification andManagement

4.6 Information Security Management

Delta strengthens continuous operation management andDelta established an information security organization and information security policies to ensure the information security

risk identification to achieve sustainable cooperation withof Delta's IT infrastructure, information application systems, and products, and the data security of customers. Delta

partners in the value chain. The main goal is to conduct

passed the regular review of the ISO 27001 information security certification in 2020.

in-depth analyses of the risks of supply chain interruptions
caused by risks of droughts derived from climate change.

Our goal for 2021 is to continue to improve information security of infrastructure and application systems and implement

To assess water resource risks in the supply chain caused

information security and personal data protection mechanisms including enhancing information classification and accessby climate change, Delta targeted the top 80% key

control, improving employees' information security awareness, information security evaluation of supplier information, andsuppliers based on annual procurement value as targets

maintenance of the ISO 27001 information security certification.

for drought risk evaluations against the backdrop ofclimate change.

4.6.1 Information Security Organization
The supplier evaluations are conducted mainly inaccordance with the 3 following risk factors. The risk

The Delta Information Security Team was established in November 2013 and the teams' current main tasks include

assessment conclusion shall be used as the basis

information security policies, information security operations, information security architecture, information security

for Delta's business decisions. Delta shares its waterprojects, information vulnerability scanning, and information security audits.

conservation experience in Delta's own plants and green
buildings with suppliers in water stressed areas. Delta

Delta's information security organization is shown in the figure below. The top level is the Information Committee whichassists suppliers in setting up water resource management

includes board members such as the CEO and COO. They participate in the information security/network security strategy

and short, medium, and long-term response strategies

and evaluation process and provide guidance on IT security tasks for the Information Security Team members to fulfill

to strengthen the sustainability of the value chain andobjectives set forth in Delta's Information Security Policy.

enhance Delta’s corporate sustainability.
• Hazards: The hazards of droughts are evaluated basedon current conditions and the impact of climate change

4.6.2 Establishment of the Information Security Policy andProcessing Procedureson the Standard Precipitation Index (SPI)• Exposure: Rating based on the amount of purchases
made from suppliers• Vulnerability: Determined by the industry characteristics(sensitivity to water usage) of the supply chain

The Information Security Team formulated Delta's Information Security Policy in November 2013. Delta began providing
training on the Information Security Policy for global employees in 2014. The Policy mainly requires employees to pay
attention to information security and avoid violations and included Internet Usage Policies, Company Email Usage Policies,
Computer Usage Policies, Anti-Virus/DLP System Setup and Usage Policy, Handling and Security Procedures for Storage
Media, Password Principles, Policies for Data Backup and Restoration, Incident Management Principles, Acceptable Use

62About the
ESG Report

4.6 Information Security
Management

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Delta's Information Security Organization

Delta Global Information Security Committee
Chairperson (CIO), CEO, COO
Information Security
Advisory Board(BG/Region Heads)
Global Information Security
Lead

NEA
SEA
Americas

Info Security Policy
Manager

Info Security
Operations

Info Security
Architect

Info Security
Program Manager

Vulnerability Scan
Manager

Info Security
Auditor

EMEA
Global Information Security

China
Corp.

Info Security Strategy

Info Security Program

Incident Response

Info Security Policy

Info Security Project

Patch Management

Info Security Review

Info Security Tools

Technical Scanning

Info Security Technology

Training & AwarenessInfo Security Scorecard

CyntecBG/BU/Region/Branches
IT Info Security Liaison
HR & Legal Info Security Liaisonof Mobile Devices, Encryption and Encryption Policies, Equipment Use and Handling

Delta also uses a diverse range of channels for regular IT security education and training

Policies, Mobile Computing and Remote Working Policies, and Remote Access Policies.

to continuously enhance employees' information security awareness. The courses include

These IT security policies have been established in accordance with ISO 27001.

information security training for new employees, annual information security online
courses, and monthly information security electronic newsletters. They are used to help

The Information Security Team will review the information security policy every year andemployees develop correct awareness and knowledge and attain information security.

closely monitor the evolution of information technology. Once the Information Security

In addition, Delta provides employees with channels for reporting internal information

Policy is revised and approved by the Chief Information Officer, the Information Security

security incidents including a button for reporting phishing emails and an IT feedback

Team will issue a notice to all employees to read and sign.

mailbox. The issues are assigned to personnel responsible for business operations forfollow-up processing.

63

4.6 Information Security
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

The IT security team completed the following tasks before theend of 2020:

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

standard operating procedures of system services after a natural disaster or an attack. It
also verifies the appropriateness and effectiveness of the standard operating proceduresto prevent interruption of information system services.

• It issued monthly information security electronic newsletters with contents based on thelatest information security case studies and trends to inform Delta employees of matters

Delta established the Vulnerability Management System (VMS) in 2018 to ensure theto pay attention to.

security of networking products and services from the Company. Before Delta's networking• 56,000* participants completed the annual online information security training

products or networking services go online, the VMS helps ensure the security of sensitive

courses with 70% coverage rate. The course contents included Delta's information

information of both the Company and its clients, and helps ensure that the system is notsecurity policy, information security risks, responsibilities of employees, mandatory IT

vulnerable to hacker attacks or theft.

regulations, course summaries, and consultation channels and contacts.
There have been no material information security incidents at Delta in the past 3 years

4.6.3 Establishment of Incident Response
Management

as of the publication date of the Annual Report. Employees in violation of information
security regulations are penalized based on the severity of the incident and the penalties
are connected to the HR Employee Rewards and Penalties Regulations. However, under

Delta began the gradual introduction of the Information Security Management System

malicious or targeted cyberattacks, the networking products and services provided by(ISMS) in 2016. The scope encompasses ICTBG-DNI New Product Introduction (NPI),

Delta may cause the Company to lose clients or cause a failure of system services. The

IT data centers, Internet, and enterprise resource planning (ERP). We also obtained

production lines in plants may also be suspended due to unresolved issues caused by

ISO 27001:2013 international standard certification through inspections conducted byattacks. Delta shall continue to review and assess the information security regulations andan independent verification institution in 2018. We led the industry in becoming theprocedures despite limitations in the size of the Information Security Team and resources

first company to adopt both NPI and IT certification. Delta shall continue to rigorously

to ensure the appropriateness and effectiveness of information security regulations andimplement Plan-Do-Check-Act (PDCA) management ideals and continue to improve

procedures.

information security management and technologies to protect customers' data.
However, due to the rapid development of information technologies and rapid changes
According to ISO 27001 certification requirements, the Company is required to conduct

in information security threats, the Company cannot fully guarantee that it would remain

at least one internal information security audit each year and appoint an independent

unaffected by targeted attacks or malicious attackers. Hackers may also attempt to use

certification institution to conduct external audits on information security. No major

cyberattacks to steal the Company's trade secrets such as confidential information of

deficiencies have been found in the internal and external information audit results

customers or the system, or employees' personal information.

in recent years. The ISO 27001 certification audit items include Business Continuity
Management (BCM) regulations and the Information Recovery Plan for which an actual

Information security risks generally damage the Company's reputation and customer

recovery exercise is conducted each year. The exercise provides an actual simulation ofrelations, which in turn affects the Company's revenue. We therefore have continued to* The number was accumulated from July 1st, 2020 ~Feb. 28th, 2021. As of July 1st, 2020 ~Apr. 30th, 2021, 73,241 Delta worldwide employees (88%) completed Information Security Annual -Refresh Training
Courses.

644.7 Comprehensive Information
Disclosure and Shareholder
Communication

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

duplicate our success in obtaining ISO 27001 certification into other business groups andWe continue to improve customers' trust in outsourcing information, and implement

affiliate companies. We have conducted IT asset labeling and classification to effectively

information security management and continuous business operation ideals to provide

control operational risks and ensure information confidentiality, integrity, and availability.

secure and efficient services.

4.7 Comprehensive Information Disclosure and Shareholder Communication
Before the implementation of relevant legislation, Delta took the initiative and publicized

visits from investor representatives to see our global manufacturing bases and exhibitions.

our 6-month financial statements, which were certified by CPAs. At the same time, we
immediately made public announcements on the Taiwan Stock Exchange, and included an

Many cities and countries imposed lockdowns in 2020 as a result of the COVID-19

Investors section on our website to provide documents such as the Chairperson's Reportpandemic. As the pandemic devastates the global economy and investor confidence,

to the Shareholders, company annual reports, financial statements, corporate governance

Delta actively engages investors in real-time and effective communication. We participatedregulations, stock value and dividend information, legal briefing sessions, and the relevantin 17 external institutional investors' conferences and more than 510 investor interview

rules and regulations regarding our committees. Delta publishes taxation information

conferences in 2020 through video and telephone conferencing.

in recent years on the Company's official website to explain how Delta pursues optimal
taxation across the globe and protects shareholder equity while complying with laws andDelta Electronics is the first in the industry to use voting by poll for all of the meeting items,

corporate governance policies and paying reasonable taxes to give back to society.

which facilitated the participation of smaller stockholders in company decisions and theirright to vote. The voting status and results are immediately disclosed to the public. We are

Delta hosts an analyst meeting each quarter, in which quarterly financial performance

also committed to providing feedback to the various suggestions provided by stockholders

and operating conditions are announced and the Company's long-term strategic planningat the annual Shareholders Meeting to provide reference for future strategies.

and future development are explained to investors and the media. The Company also
provides simultaneous Chinese and English online streaming broadcast services on

Delta actively communicates with corporate shareholders to respond to international

Delta's website. This makes it more convenient for all domestic and foreign investors tocorporate investors' focus on ESG issues. We also participate in multiple international

understand the Company's latest information in a timely manner.

conferences to learn about the latest international development trends and requirementsof corporate shareholders including the composition of the Board of Directors, theAs Delta has a high ratio of foreign investors, we attach a great amount of importanceCompany's carbon emissions reduction targets, employee benefits, and ESG management

to properly communicating with foreign investors. This is done through participation in

for a sustainable supply chain. For years, Delta has won praise from internationalvarious investor forums and conferences annually, and through direct visits to foreign

investors for its performance in communicating with shareholders. We received the "Bestshareholders in Asia, Europe, and the United States. In addition to describing operationin Sector" investor relations award from the international rating organization IR Magazine

conditions to foreign investors, we also factor in positive advice from various stakeholders

in 2020.

related to corporate operations, financial affairs, and corporate governance. At the sametime, we fully cooperate with domestic and international visits and welcome non-periodic
65

4.8 Emerging Risks –Response to the COVID-19
Epidemic

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

4.8 Emerging Risks – Response to the COVID-19 Epidemic
In response to the SARS-CoV-19 (hereinafter referred to as COVID-19) epidemic which erupted at the end of 2019, Delta has implemented disease prevention tasks in plants andoperations across the globe. The Disease Prevention Command Center serves as the Secretariat for overseeing regional epidemic development, updates of laws and regulations, overallmanagement of disease prevention materials, evaluation of the impact on Delta, and internal disease prevention announcements and reviews.
The highest-ranking officers in all regions across the globe regularly report disease prevention conditions, execute implementation plans, and report the development of the epidemic in
all locations. The highest-ranking officers of business units regularly report the production capacity of their respective plants or production lines, possible issues, and communication withcustomers.
The HR, procurement, legal affairs, finance, IT, and corporate communications departments at the head office provide full logistical support including requirements for all operations to
implement disease prevention measures in all plants and offices, close monitoring of the health conditions of global employees, unified external communication, procurement of disease
prevention supplies, legal issues, and information security issues.

AspectManagement Measures
We set up temperature monitoring teams in plants across the globe to take charge of the temperature screening plans andimplementation. We also assigned on-duty personnel to direct and supervise body temperature measurement tasks during their work
hours and report issues to supervisors. Plant affairs / security personnel are responsible for enhanced access control and management
during the epidemic. They are required to survey and register related information of visitors and implement body temperature
measurement and hand sanitation tasks.

Personnel Safety Management

Each region / plant created body temperature monitoring plans for onsite personnel based on the development of the epidemic in thearea. They implemented temperature screening for all personnel who entered the plants to ensure that all personnel have completed
body temperature measurements before entering plants or work areas. When an individual's body temperature exceeds the management
threshold (e.g., 37.5°C in Taiwan and 37.3°C in Mainland China; definitions for other regions were adopted based on local definitions offevers), he / she shall be prohibited from entering and shall be issued face masks. The regions / plants shall record related information
and request the individual to seek medical attention.
The plants set up health monitoring teams to take charge of planning the temperature measurement locations, movement of personnel,
equipment, manpower, promotional materials, and follow-up measures for irregularities. The members of the team included the Human
Resources Department, Health Management Center (doctors or nurses), access management unit (plant affairs / security), and the
Occupational Health and Safety Department. If the plant does not have the aforementioned functional departments, the highest-ranking
officer of the region or plant shall assign personnel to the team. Personnel responsible for measuring body temperature must have a
medical background. The frequency of measurements shall be adjusted based on the requirements of the local competent authority or
the development of the epidemic.

66

4.8 Emerging Risks –Response to the COVID-19
Epidemic

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

AspectManagement Measures

Personnel Safety Management

Employees must measure their temperature at least once each day. If the epidemic is severe, they must measure their temperature atleast twice each day. If irregular body temperature is found during the measurement period, the personnel information must be recorded
and medical personnel shall follow up on the cases and record information in the infection risk management table.

Appendix

In addition, all main entries, restaurants, and elevators of each plant must be equipped with disinfection floor mats, automatic handsanitation sprayers, and other disinfection products.
We established environment cleaning and sanitation programs during the epidemic which included the frequency of disinfections of eacharea and equipment, the types (contents) of disinfectant used, configuration and usage, personnel responsible for disinfection, methods
for protecting them, disinfection records, and disinfection methods in case of confirmed cases.

Environment Disinfection
Management

We strengthened training for operating personnel and implemented the most effective cleaning and disinfection methods. All disinfection
personnel must wear the necessary personal protective equipment (e.g., masks, gloves, waterproof aprons, or others). Areas in the plant
including the gate, production areas, office areas, conference rooms, visitor areas, restrooms, dormitories, cafeterias, company vehicles,
central air-conditioning systems, observation areas, and isolation areas are cleaned and disinfected with various physical or chemical
methods to eliminate or reduce the presence of pathogens.
If there is no special need, it is advisable to open windows in the confined spaces of each plant and reduce the use of central airconditioning system to ensure ventilation. When using the central air-conditioning system, maintain the normal functions and increase thefrequency and duration of ventilation. Plants must also regularly disinfect the air-conditioning system.
In the event of a confirmed case, the plant must execute a comprehensive and thorough disinfection of areas and sites that may havebeen exposed to the patient in accordance with the regulations of local government authorities.
The Disease Prevention Command Center at the head office collects information and monitors the management of disease prevention
supplies in all regions. The regional disease prevention centers are responsible for the control, management, and allocation of supplies in
the respective region. They also follow up on the procurement, inspections, and acceptance of disease prevention supplies.

Management of Disease
Prevention Supplies

All units that require supplies can report the specifications and quantities of disease prevention supplies based on disease prevention
requirements in each region. The procurement department purchases disease prevention supplies based on the specifications andquantity and follows up on the supply status of suppliers.
The regions / plants inventoried the quantities of disease prevention supplies to meet safety stock requirements for each region / plant.
They also closely monitored information on disease prevention supplies and supply channels so that they can order emergency supplies
when necessary and ensure a continuous supply of disease prevention supplies during the epidemic.
To ensure adequate distribution of disease prevention supplies, the regional disease prevention command centers are required to assign
dedicated personnel to take charge of the procurement, allocation, and distribution of the supplies. They are also required to regularly
report information on important disease prevention supplies, quantities, and demand to the Disease Prevention Command Center of thehead office.

67

4.8 Emerging Risks –Response to the COVID-19
Epidemic

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

AspectManagement Measures

Management of Disease
Prevention Supplies

In terms of emergency contingency plans for confirmed cases, once an employee is confirmed to have contracted COVID-19 and hasentered the office within the last 15 days, the plant / HR shall immediately report to the General Manager of the region and report to the
Disease Prevention Command Center of the head office within two hours. The close contacts of employees who have been diagnosed
with COVID-19 must be immediately placed in the emergency isolation area. If such employees are residents of the plant, all employees
living on the same level shall be immediately recalled to the original dormitory for isolation.
The floor where the employee with a confirmed diagnosis works must be wiped or sprayed with disinfectants containing 1000mg/L
chlorine or 500mg/L chlorine dioxide disinfectant. After the indoor area is disinfected, the disinfectant shall be sprayed from the inside
out, and the disinfection time must be no less than 30 seconds.

Uninterruptible Supply Chain
Management

Body Temperature Measurement in Delta Plants

68

The production management, procurement, warehouse, and sales departments have convened emergency meetings to contact suppliers
and obtain key information in response to production line interruptions of raw materials and a sudden rise in demand for materials as aresult of the epidemic and the indirect impact of suppliers' adopting remote working. They reviewed the priorities of overall demand formaterials, alternatives, and sequence of material preparation on work assignment forms to create an uninterruptible supply chain planand formulate a recovery plan.

Environment Disinfection Management in Delta Buildings

Appendix

4.8 Emerging Risks –Response to the COVID-19
Epidemic

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Important Milestones:

21

30

31

3

7

January

January

January

February

February

The first COVID-19 case wasannounced in Taiwan on January
21, 2020. Delta immediately
convened an emergency
response meeting to discuss andmake decisions on the global
epidemic prevention organization
and regulations. The contents
included internal and external
communication management,
travel restrictions and management, attendance management,
cafeteria usage management,
and migrant dormitory management.

Delta's COVID-19 Epidemic
Prevention Command Center was
officially established on January
30. The Command Center
published a statement for external
entities and used the intranet,company app, and announcements in plants to communicate
disease prevention guidelines.

All plants and office locations in
Taiwan began implementing bodytemperature measurement before
employees enter the premises.

On February 3, we required all
production sites and operation
locations across the globe tomeasure body temperature andreport all disease prevention
information to the head office.
The disease prevention section
was launched in the Company's
intranet on the same day. The
Disease Prevention Team
immediately reported the designand division of work for the global
disease prevention organization
to the management team.

The Disease Prevention Teamissued the "COVID-19 Response
Guidelines" to all employees on
February 7, and issued the "Delta
COVID-19 Disease Prevention
Plan" on February 11. The
COVID-19 section was set up on
Delta's official website on
February 14 and the second
statement was published.

2020

69

About the
ESG Report

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Overview

Sustainable
Management

5

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Environmental Protection
and Energy Savings
5.1 Key Performance Indicators
5.2 Climate Change and Carbon Management
5.3 Energy Management
5.4 Water Resource Management
5.5 Waste Management
5.6 Green Products
5.7 Environmental Management70

Appendix

5.1 Key Performance Indicators

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

5.1 Key Performance Indicators

Employee Relations
and Social
Engagement

Appendix

Main Endeavors

Energy Savings of Highefficiency Products forWorldwide Customers

Energy-saving Practices at
Global Green Buildings

33.5

16.82

310.3

billion kWhmillion kWhmillion kWh

Renewable Electricity
Generated and Purchased■ Accumulated and Deepened R&D
Momentum: Continued to develop
green energy products, energy saving
products and solutions.

2010-2020

SBT Decrease in Plant Carbon
Intensity (CI)

Environmental
Protection andEnergy Savings

Decrease in Building EUI

Reduction in Electricity
Consumption of Non-IT
Equipment

55%

20.5%

33%

Compared to 2014

Compared to 2014

Compared to 2015

■ Implemented Sustainable
Production: Set reduction goals, andreduced the impact of plants and productson the environment.

■ Promoted Renewable Energy
Development: Actively developed
renewable energy solutions and increased
the use ratio of renewable electricity.

■ Response to Climate Change:
Identified climate change risks, built
competencies to adapt to climate risks andfurther mitigate possible climate risks.

Decrease in Plant Water
Productivity Intensity (WPI)

Waste Diversion Rate

Environmental Protection
Investment

30.9%

92.2%

10.47

Compared to 2015

(The waste to energy recovery
exceeded 10%, calculated as 10%)MUSD

■ Promoted Green Building
Concepts: Implemented green buildings
by applying Delta's energy-saving
solutions.

■ Aligned with International
Sustainability Trends: Actively
responded to international initiatives.

715.1 Key Performance Indicators

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Overview

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Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Aligning with UN Sustainable Development Goals

No Poverty

Responsible Consumption and Production

In 2017, worked and assisted with the United Nations Development
Programme in developing countries by providing renewable energy solutions
and enhancing energy accessibility.

Implemented sustainable manufacturing to reduce plant impact on thecommunity. Improved the efficiency of energy and raw materials usage.
Implemented green design and green packaging.

Clean Water and Sanitation

Climate Action

Set water reduction goals and improved water resource usage efficiency.
Developed green building and water-saving technology.

Established and committed to a science-based target (SBT) of carbon
reduction to exert a wider positive influence. Committed to the fight against
climate change and seizing related business opportunities.

Affordable and Clean EnergyLife on Land

Developed solar power systems, increasing the popularization of renewableenergy. Enhanced renewable electricity usage in our plants.

Promoted green buildings to increase land biodiversity and reduce corporate
operations' ecological impact.

Industry Innovation and InfrastructurePartnerships for the Goals

Promoted a variety of integrated energy-saving solutions to accelerate industry
innovation.

Worked with the Taiwan Business Council for Sustainable Development in2015 in compiling energy and climate policy white papers and called upon thelocal government to focus its attention on related policies. Responded to the
5 commitments behind We Mean Business by committing to adopt a sciencebased emissions reduction target.*Sustainable Cities and Communities
Developed electric vehicle charging solutions and joined the EV100 initiativein 2018 to promote sustainable transportation. Developed green buildings toassist in sustainable urban development.

* Organizations such as the World Business Council for Sustainable Development (WBCSD), CDP, and The Climate Group proposed initiatives and invited enterprises across the world to join the We Mean
Business Coalition and commit to taking actions to respond to climate change.
Link: https://www.wemeanbusinesscoalition.org/companies/#region=Asia%20Pacific&country=Taiwan

725.2 Climate Change andCarbon Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.2 Climate Change and Carbon Management

Key Initiatives for
Alignment with SDGs

Strategic Direction

Commitments

KPI

Delta has incorporated climate

Specific achievements on the "Wechange into its corporate sustainable

Mean Business" commitments are:

SBT Scope 1 and Scope 2 carbon
intensity target (tons CO2e / MUSD)

management's major risk categories,■ Committed to adopting a science-

while utilizing mitigation and adaptation

based emissions reduction target.

in its management practices. In■ Committed to reporting climate

addition, Delta actively identified riskschange information in mainstream

and developed adaption capabilities toreports as a fiduciary duty.

further analyze climate opportunities
and accumulate R&D momentum todevelop green energy, product energy
reduction, and solution changes, aswell as strive to be a solution provider
for green energy saving. Delta has
also integrated its core competencies■ Committed to responsible corporate
engagement in climate policy.

■ 2020 Target
32.9% reduction
Achieved■ 2020 Performance
55% reduction (market base)Respond to global temperature increase■ Medium and Long-term Target
Decrease of 56.6% by 2025

temperatures, establish and accomplish
science-based target of carbon reduction■ Converted to electric vehicles andexpanded charging facilities.

Baseline year / 2014

■ Promoted 100% renewableelectricity

SBT Scope 3 average power
efficiency of server power (%)

in the promotion of its energy saving
strategy.

within 1.5°C compared to pre-industrial

Identify climate change risks, build■ 2020 Target
Increased by 1.0%

competencies to adapt to climate risks■ 2020 Performance
Increased by 0.4%

risks

and further mitigate possible climate■ Medium and Long-term Target
Increase of 1.6% by 2022
Baseline year / 2016

Participate in international initiatives tosummarize and develop climate change
opportunities735.2 Climate Change andCarbon Management

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Management

Overview

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

5.2.1 Response to Climate Change
As a company with a long-term focus on climate change and energy efficiency as its core business, climate change has been integrated into Delta's business strategy and sustainability
goals. However, as global warming gradually impacts on the global economy and climate change becomes a global risk, we are not only concerned about the direct and indirect impactsof climate change, but also how to respond more proactively to the coming era of climate change.

● Green Operations ● Greenhouse Gases ● Green Buildings ● Promotion of Green Plants and Offices ● Carbon Disclosure

2011
Dongguan / Thailand plants
achieved ISO 50001
compliance certification
India Rudrapur(LEED- INDIA Gold)

2012

2013

Taoyuan R&D Center (EEWH
Diamond Grade and LEED Gold)
India Gurgaon (LEED- INDIA
Platinum)

Completed GHG inventory of
8 key suppliers

2014

Dongguan Plant received energy
management system certificationin China
Taipei Headquarters - Ruey
Kuang Building (EEWH-RN
Diamond)Shanghai R&D Building(LEED Gold)2015

The only company in Greater China
selected for CPLI (Carbon Performance Leadership Index) and CDLI
(Carbon Disclosure Leadership
Index) for the CDP (Carbon
Disclosure Project)

Expanded the scope of energy saving to
new plants, buildings, and data centers

Wujiang plant achieved energy
management system certification for
China

America Headquarters (LEED Platinum)

Setting comparison base year forelectricity intensity reduction reduced

2016

2017

2018

Selected for CDLI of CDP for two consecutive years
Commitment to the three initiatives of We
Mean Business

2019

2020

Selected as CDP Climate Change
Leadership Level A-

Submitted Delta's SBT and passed the
SBTi compliance validation

Selected as CDP Climate ChangeManagement Level

Achieved the SBT for 2
consecutive years

Achieved SBT for 3 consecutive
years

Beĳing Office Building (LEED Silver)
Taoyuan Plant 5(EEWH Gold and LEED Gold)
India Mumbai Building (LEED Platinum)
Taipei Headquarters - Ruey Kuang Building(LEED Platinum)

100% of Delta's main production plants andEltek production plants achieved ISO
14064-1 certification

Chungli R&D Building (LEED Gold)
Multi-purpose building in AKO Energy Parkin Japan (LEED Gold)
Wujiang Data Center (LEED Gold)

Green data center in Taipei
Headquarters (LEED Platinum)Awarded the CDP Climate
Change, Water Security andSupplier Engagement Rating(SER) Level A

100% of Delta's main production plants
have achieved ISO 14064-1 certification
Researched and developed thescience-based target and methodology

EMEA Headquarters in the Netherlands(BREEAM Very Good)
Thailand Plant 5 (LEED Gold)
Shanghai R&D Building (LEED Platinum)
Selected as CDP Climate Change
Leadership Level A-

100% of Delta's overall production plants
and 6 buildings in Taiwan have passed ISO
14064-1 certification
Achieved Delta's SBT in the first year
Joined the EV100 Initiative

Establish internal carbon pricing
Disclosed climate change information in the
Financial Report based on the TCFD
framework for the first time74

Dongguan, Wujiang, Wuhu, Cyntec Hsinchu
and Cyntec Huafeng plants achieved ISO
14064-1 certification

Became the world's first TCFD supporterfor the technology manufacturing industry

100% of Delta's overall production plants and 6 buildings in
Taiwan have passed ISO
14064-1 certification
Awarded the CDP Climate
Change Leadership Level AParticipated in COP25 to sharewater conservation applications
and education

Joined the RE100 Initiative(officially joined in 2021)
Completed the second climatechange risks and opportunities
assessment

5.2 Climate Change andCarbon Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Since the publication of the Recommendations of the Task Force on Climate-related

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Climate Risk Assessment and Strategies

Financial Disclosures (TCFD) in 2017, Delta took the lead in disclosing information on
climate governance, strategies, risk management, and key indicators according to the 4

To understand which of the many climate change risks Delta should prioritize and address,

elements of TCFD in its 2016 Financial Report that was published in 2017. The progress

we conduct a major survey every 3 years and a review every year to identify key climate

is disclosed annually in the Financial Report and ESG Report. In response to TCFD, Delta

risk items. Delta's latest company climate risk survey was completed just before the end of

became a TCFD supporter in February 2018.

2020. For this survey, our optimization measures include:

Governance■ Collecting relevant cases from around the world and adjusting the issues to keep
up with the times (as shown in the table below): The number of policy and regulatory

The Delta ESG Committee, under the jurisdiction of the Board of Directors, is Delta's

risks has been reduced from 12 to 8 items, technology risks from 3 to 2 items, businesshighest-level internal climate risk and opportunity supervision body. The Committee

reputation risks from 3 to 2 items, and market risks increased from 3 to 6 items, while

comprises a number of board members, operational team members, Chief Sustainability

physical risks remain at 4. For example, in recent years, investors are actively focusing

Officer (CSO), regional operations directors, and functional directors. The CSO reports

on corporate performance on climate change, so we have included "lack of contribution

to the board on a quarterly basis on climate change trends and Delta's climate related

from company on climate change, which affects investors' and banks' willingness tomanagement progress.

invest" as one of the inventory items.

The majority of the board has a long-standing interest in climate change and has a full

■ Redesigned risk impact level: Quantitative thresholds are used to design the financial

understanding of its importance and impact. The board takes climate change issues into

impact levels (including revenue, costs, and assets), and the maximum impact level isaccount when considering major capital investment projects, including the construction of

set at 0.5% to 1% of Delta's consolidated revenue.

green buildings, solar energy facilities, and green energy investments.
■ New quantitative difficulty indicator added: The availability of quantitative
The Corporate Sustainability Development Office under the ESG Committee is responsible

information will be critical to achieving the desired monetization of impacts for TCFD

for following international climate change trends, as well as promoting and coordinatingin the future. We have established a judgment flowchart to assist departments inprojects related to climate change and renewable energy. The business groups are

considering the data that may be used for each climate change risk.

responsible for developing various energy-efficient products and solutions, and developing
products and services that contribute to climate change mitigation and adaptation. The■ Using international databases: Supplemented by an online climate risk information

Energy Management Service Department is responsible for providing energy efficiency

platform, we assess immediate and long-term physical risks on a larger geographic

improvement services.

scale for Taiwan, Mainland China, Thailand, San Francisco of California, USA, andIndia.

In addition, Delta Electronics Foundation participates in important international climatechange conferences each year to gain insight on the development of climate change
policies and scientific research.

■ Organizing TCFD education training and workshops: Held the training andworkshops in Mandarin and English, and invited Thailand to participate for the first time.

75

5.2 Climate Change andCarbon Management

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Employee Relations
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Engagement

Appendix

With over 70 representatives from business groups and functional groups, as well as

Macroscopic physical risks are very difficult to manage through quantification. Risks such

expert opinions and external literature adjustments, the four 4 risks identified wereas "increasing severity of extreme climate events" and "changing rainfall patterns and"increasing raw material costs", "renewable energy regulations", "increasing severity ofsevere weather patterns" are more difficult to quantify than "renewable energy regulations"extreme climate events", and "changing rainfall patterns and severe weather patterns".

and "increased raw material costs".

The increase in raw material cost is the second time that it has been determined to bea risk of highest concern after being identified as such in the previous survey. As for theWith further analysis, each business group is affected by climate change risks differently.

other 3 risks of highest concern, they were elevated from the second highest concern risk

Delta’s industrial automation, fan and thermal management, and electric vehicle solutions

level in the previous survey to the highest concern risk level, indicating that the impact ofbusiness groups are the most sensitive to climate change risks. If we analyze the physicalrenewable energy, extreme weather, and changes in weather patterns are clearly felt byrisk by operational location, the Yangtze River basin in China suffered more damage in

Delta and require adaptive actions.

2020 due to local floods, reflecting the reason for the higher score in China, followed by
Taiwan and then Thailand.

TCFD workshop76About the
ESG Report

5.2 Climate Change andCarbon Management

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Delta Climate Risk List
Risk Type

Climate Risk Item
1

International sector agreements

L

2

Voluntary agreements

M

3

Uncertainty surrounding regulation and policies.

M

4

Carbon tax and related regulation.

M

5
2

Requirement of decreasing greenhouse indirect emissions (water andwaste reduction)

L

6

Mandates on and regulation of existing products and services

M

7
2

Renewable energy regulation

H

8

Exposure to litigation

L

19
9

Substitution of existing products and services with lower emissions options

L

10
19

Costs to transition to lower emissions technology

L

19
11

Customers change supplier selection criteria.

L

12
2

Customers change product specification requirements.

M

13
19

Shifts in consumer preferences to low-carbon products

L

14
2

Emissions reduction requirements to suppliers

L

15
2

Increased cost of raw materials

H

16
19

Investors evaluate climate change efforts (e.g. ESG performance) inmaking investment decision.

L

17
19

Stigmatization of sector

L

18

Corporate image affected by news about climate change.

L

19

Increased severity of extreme weather events as cyclones and floods

H

20

Changes in precipitation patterns and extreme variability in weather
patterns

H

21

Rising mean temperatures

L

22

Rising sea levels

L

Delta Climate Risk Analysis Matrix

4

Impact Likelihood

5

Policy andRegulatory
Risks

7
2
15
3
4
21
1

12
10

5

6

20
19

11

Transition
Risks

13

3

14

9

22

Technology
Risks

2
16

Market Risks
8

18

17
Magnitude of Impact

1
1

Risk
Group

2

3

4

5

Transition Risks(Degree of Difficulty in Quantifying Impact: High)Business
Reputation
Risks

Transition Risks(Degree of Difficulty in Quantifying Impact: Low)

Immediate
Physical Risks

Physical Risks(Degree of Difficulty in Quantifying Impact: High)
Physical Risks(Degree of Difficulty in Quantifying Impact: Low)

Physical
Risks

Long-Term
Physical Risks77

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Appendix

When faced with climate risks, Delta not only identifies high-concern risks, but also evaluates the channels of impact, the possible adaptive measures, and the opportunities for derivation,
as described below.

Risk Item

Climate Risks and Impacts

Policy and Regulatory Risks

Policy and regulatory risks are easier to monitor than other risks. Out of all policies, wepay special attention to Nationally Determined Contributions (NDCs) and stay aheadof policies to prioritize compliance and avoid violations. Delta’s plants are currently
not included within the scope of carbon taxes or mandatory carbon trading. Products
are also not directly placed under management. However, once they are placed undermanagement, it may increase operating costs, increase management expenses, andlead to the inability to implement prompt response measures or even penalties due tothe inability of renewable electricity supply to meet demand or lack of transparency inpolicies.

Response and Derivative Opportunities■ Introduce internal carbon pricing and charge forgreenhouse gas emissions■ Joined RE100 and set renewable electricity targets.
■ Actively pay attention to the development ofinternational systems such as carbon border tax,
renewable electricity regulations, and renewableelectricity certificate system, and participate in thePower Purchase Agreement (PPA).

In 2020, more benchmark customers are asking about Delta's carbon reduction targets
and the proportion of renewable electricity. However, renewable electricity is a newchallenge for humanity. With the lack of transparency in the global market and price of
renewable electricity, how to obtain renewable electricity that meets the requirementsof customers and international evaluation, as well as being environmentally-friendly,
and how to take care of ecological needs with limited land resources are some of thederivative risks that we are concerned about.

Technology Risks

Delta pays close attention to development in the power sector and actively pursues
opportunities available to Delta in a low-carbon economy. Currently, Delta's coretechnology is mainly energy saving, and some of its products can be used in renewableenergy-related solutions. However, the technology has not yet crossed over to carbon
capture and storage, and Delta may face more challenges in technology competition if
the Deep Decarbonization Pathways Project (DDPP) is implemented.

■ Climate change is one of the factors Delta takes into
consideration when laying out its technology. All the
new technologies, new products, and new directions
over the past few decades, such as IA, electric vehicles,
batteries, building automation, green buildings, and
ESG knowledge applications, are all opportunities.

However, there may be errors in judging the technology needs brought about by climatechange and inability to assess the feasibility of the technology based on past experience.
In addition, technology deployment requires a certain amount of time and capital
investment, which may lead to misjudgment of industry trends and long payback periods.

■ Take low-carbon transport as an example, Delta
invested in the electric vehicle field more than 10 years
in advance and is now a supplier to first-tier vehicle
manufacturers.

The development of new technologies requires the entire supply chain to work together
in order to make commercialized products. If our existing suppliers are unable to improvetheir knowledge of climate change, or if their specifications and technologies cannot be
synchronized with the requirements of the new technology, or if the cost of materials is
too high, then the quality of the product, the commercialization process, and the overall
cost will definitely be affected.

78

5.2 Climate Change andCarbon Management

Market Risks

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

If customer or consumer demand for low-carbon products is lower than expected or if
the signal is not sufficiently strong, it may lead to a delay in the launch of low-carbon
products, unacceptable prices, reduced profits, or early termination. Climate change may
indirectly or directly cause interruptions in the supply chain and Delta may be forced tochoose raw material manufacturers with higher unit costs or change transportation routes
which may increase the cost. Product materials and specifications may also increase interms of higher temperature tolerance, salt tolerance, or energy efficiency which would
increase the cost of raw materials.

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix■ Develop heat-resistant, low-temperature, and saltresistant ventilation and cooling equipment.
■ Introduce ESG and other related measures in advance
to meet regulatory and customer requirements.

Delta evaluates the development of energy storage solutions by combining the NDC
scenario and Beyond 2°C scenario with the current policy direction in Taiwan, and theassessment shows that Beyond 2°C will bring much greater market opportunities thanthe NDC scenario.

Business Reputation Risks

Physical Risks

Business reputation risks are relatively low for Delta, mainly because Delta's productportfolio is diversified and does not include high carbon emission products or businesses,
so the risk of negative news on climate change is low.

■ Continue to monitor international legislative changes
and trends

Physical risks could lead to disruptions in the transportation of materials and goods,
disruptions in employee transportation, reduced employee productivity due to hightemperatures, increased cost of chillers and other air-conditioning equipment,
increased cost of flood prevention measures, increased frequency and cost of building
maintenance, and disruptions to production lines due to flooding and water outages.
Since self-generated solar energy is one of Delta's renewable electricity strategies,changes in sunlight due to weather changes or forest fires due to extreme temperatures
can affect the efficiency of solar panels in renewable electricity generation due toincreasing air pollutants.

■ Since 2006, Delta's plants, offices, and data centers
have implemented the Green Building Standard,
obtained green building certificates, and calculated
annual energy savings. Delta's policies and green
building standards are applied to all newly-built plants
with the goal of adapting to climate change.

Take climate change as an example, the model results show that RCP 2.6 will havea greater impact on Delta's Taoyuan plant in 2030 than RCP 8.5, including a higher
severity of water shortage and a higher rate of supply reduction due to water shortage,
but a lower probability of water shortage than 8.5. However, by 2050, RCP8.5 will have agreater impact than RCP2.6.

■ Developed a Business Continuity Plan (BCP) for floods
caused by heavy rainfall and fires caused by extreme
high temperatures.
■ Delta has focused on severe water shortage eventsand taken measures to adapt to climate change, suchas: replacing high water consumption facilities within
5 years, strengthening emergency back-up provisions
and planning, as well as establishing a waste water
reclamation system within 5 to 10 years to reducedemands for secondary use.

79

5.2 Climate Change andCarbon Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Progress in 2020 - Scenario Analysis
In response to climate change, renewable electricity is oneof the options for mitigation and adaptation. However, as the
proportion of renewable electricity increases, the impact on
the power grid will be more pronounced, thereby creating
the need for energy storage systems through operational
demands.
Delta's energy storage solutions are a key climate
opportunity for Delta because the solutions can help ensurea reliable and stable power supply and support energy
management functions such as demand response, peakshaving, and renewable electricity smoothing. In 2020, Delta
took energy storage systems as an example and applied
2 major climate scenarios, namely Taiwan's NDC scenario
and Beyond 2°C scenario, to build a TCFD scenario analysis
model. The TCFD model evaluates potential opportunities
for energy storage products in the Taiwan market underthese 2 scenarios.
In an effort to minimize the impact on climate, Delta isdevoted to green operations, energy management, carbon
disclosure, and green promotion. Developing capabilities
to adapt to climate change and reduce extreme weather
risks is a key issue that should be included in a corporate
sustainability management strategy.

80

Delta's Energy Storage Solutions

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix5.2 Climate Change andCarbon Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Methodology

ResultBackground literature:

Comparison of the 2 scenarios:• Policies and regulations related to energy storage in various countries

In the model settings, we compared the growth of the same scenario in different• Reports on ancillary service capacity of regional renewable energy installation

years. The overall energy storage market is expected to grow more than twice

capacity• Delta's technology development and market strategy

Appendix

as much in 2030 compared to 2025 in the B2DS. In the NDC scenario, theoverall energy storage market is expected to grow almost twice as much in2030 as in 2025. If we compare the 2 scenarios in the same year, the estimatedScenario model and parameters:

overall energy storage market in 2030 in the B2DS is 4.7 times larger than in• Taiwan Nationally Determined Contributions (NDCs) scenarios and Beyond

the NDC scenario. This indicates that the B2DS significantly drives demand for

2°C scenarios (B2DS) are selectedenergy storage solutions, therefore, it is better if B2DS is the policy for Taiwan.

• Total global greenhouse gas emissions and power generation under different
scenarios• Estimated share of renewable energy in 2025 and 2030, using the Taiwan
market as an example• Estimated amount of energy storage installations

Results of Delta's strategic comparison scenario analysis:
Before 2025, Delta's internal strategy for energy storage solutions is consistent
with NDC. However, if the policy environment in the B2DS takes shape, we
expect a doubling of net increase in revenue compared to the baseline value.

• Delta's energy storage system specifications, prices, market and customer
demand, and estimated installation capacity

Delta's cumulative sales revenue
forecast● NDC ● B2DS

2020

2025

2030
81

5.2 Climate Change andCarbon Management

About theESG Report

A Word from
the Management

5.2.2 Greenhouse Gas Inventory
and Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Greenhouse Gas Inventory
For years, electricity use has been the main scope of Delta's greenhouse gas emissions (accounting for more than 95%).

Since 2007, Delta has participated in CDP to disclose

Delta's greenhouse gas emissions reduction strategy is based primarily on plant energy management and adoption

the Company's greenhouse gas emissions. Delta's mainof green power. Direct and major indirect greenhouse gas emissions of overall plants in 2020 was 177,811 tons CO2e

production plants have also successively obtained ISO(market-based), which was a 31.1% reduction compared to the previous year. It was mainly the result of additional green

14064-1 Greenhouse Gas (GHG) Verification. Since 2016,

electricity in 2020 which accounted for 60%. We installed solar power generation equipment in the plants and purchased

100% of Delta's main production plants have achieved

International Renewable Energy Certificates (I-RECs) in China. Delta’s carbon intensity (CI) in 2020 in main production

ISO 14064-1 GHG Verification. In 2017, Eltek, Delta's

plants was 21.8 (tons CO2e / production value in MUSD by market), which was a reduction of 55% from the baseline

subsidiary, achieved ISO 14064-1 GHG Verification atyear 2014 and a reduction of 37% from the previous year. Absolute emissions decreased by 49% compared to the 2014

its USA, Brazil, and India plants. In 2018, the scope ofbase year. We have achieved the Science-Based Target (SBT) for individual stages in 3 consecutive years, as well as

certification was extended to buildings in Taiwan, and 4

proactively responded to the initiative to control global warming at 1.5˚C. Achieving the active management results of

new buildings in Taiwan completed the ISO 14064-1 GHG

exceeding the 1.5˚C reduction measures for 2 consecutive years fully demonstrates Delta's resolve for fulfilling the SBT.

Verification. In 2020, all Delta production plants havepassed ISO 14064-1 Verification.

Strategy for Achieving Carbon Reduction Targets in 2020

Delta has taken the lead in establishing science-basedtargets by proposing to lower our carbon intensity by
56.6% by 2025 using 2014 as the base year. Undergoinga compliance evaluation from Science Based Targets
initiative (SBTi) in December 2017, Delta became the firstin Taiwan as well as one of the first 87 companies globallyto pass this evaluation. In addition to its own specific

EnergyConservation Plan

Self-generated
Solar Power at the Plants

Purchase of Renewable Electricity
Certificates (I-REC)9,328 ton CO

17,458 ton CO

227,240 ton CO

2e

2e

2e

response to control the global temperature increase within
2°C, Delta actively encourages other companies to jointly

Statistics of Greenhouse Gas Emissions in 2020 (Unit: metric ton-CO2e)

respond to global carbon reduction and has been invited
many times to CDP, SBTi and World Resources Institute(WRI) to share its science-based targets experience.

CO2

CH4

N 2O

HFCs

PFCs

SF6

NF3

Total

168,717.49

5,445.88

25.56

1,921.60

645.76

1.76

0.00

176,758.05

Overall Production
169,770.59
Plants*2

5,445.88

25.56

1,921.60

645.761.76

0.00

177,811.15

Main Production
Plant*1*1 Main production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China, DET plant 1, 5, and 6, and Taoyuan plant 1 and 2 in Taiwan, Cyntec Hsinchu and Huafeng plants are within the scope of the
SBT commitment.
* 2 Overall production plants include Delta's main production plants and Eltek production plants acquired after 2015 (plants in the United States and India).

82

About the
ESG Report

5.2 Climate Change andCarbon Management

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

Direct and Indirect Greenhouse Gas Emissions

Value Chain Emissions

Main Production Plant * 1

Delta adopted the GHG Protocol Evaluator Tool to identify the primary source of its Scope

Overall Production Plant * 2

3 emissions in 2017. Results indicate that emissions from server power supplies exceeded
70% of all Scope 3 emissions. These results were verified by ISO 14064-1. To lower

Direct (tons CO2e)

Direct (tons CO2e)

Major Indirect (tons CO2e)

Major Indirect (tons CO2e)

Carbon Intensity

Carbon Intensity(tons CO2e / Production Value in MUSD)(tons CO2e / Production Value in MUSD)

GHG emissions, Delta set up specific energy efficiency targets for server power supplies.
We aim to lower Scope 3 emissions 20% by 2022 from the base year of 2016 throughenhancing energy efficiency by 1.6%. In 2020, the average energy efficiency of server
power supplies will improve by 0.4% compared to the 2016 base year through the efforts
of continuous innovation in R&D.

Value Chain Greenhouse Gas (GHG) Emissions (Unit: metric ton-CO2e)393,690392,371
370,874

370,874

Category 1 & 2

54.1
176,758

41.2
34.6

8.0%

0.08%

2.2%

12.9%

1.5%

0.07%

1.8%

14,183.00

440.78

11,762.29

69,786.25

7,855.45

374.61

9,464.63

18,59852.5
177,81141.2

14,131

34.3

21.8

14,183
92.0%

21.4

Downstream Leasing

18,55452.7

Use of Sold Products

54.1

Waste Generated in Operation

258,120

256,934

Purchased Products and Services

25,670Downstream Transportation & Distribution

25,661

Upstream Transportation & Distribution

176,303

Business Travel

322,359

Energy Indirect

19,90019,900Category 3~625,254

Direct Emission

25,21981.6%

440,946.42

163,628.00

350,974

367,152

296,698

238,380

162,627

350,974

368,436

323,828

239,522

163,628

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

* 1 Main production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China, DET plant 1, 5, and 6, and Taoyuan plant 1 and 2 in Taiwan, Cyntec Hsinchu and Huafeng plants are within the scope of the
SBT commitment.
* 2 Overall production plants include Delta's main plants and Eltek production plants acquired after 2015 (plants in the United States and India).

835.2 Climate Change andCarbon Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Delta's Internal Carbon Pricing
Delta has long focused on the trend for internal carbon
pricing. To strengthen internal carbon management,
we voluntarily internalize the economic costs of carbon
emissions from operating activities. Delta established its
internal carbon pricing mechanism in 2017. We update
internal carbon pricing annually as a strategic tool to help
our internal decarbonization efforts, as well as to serve as
a risk management tool. We updated our internal carbon
price to 300 USD per metric ton in December 2020,
taking into account global regulatory costs, international
corporate benchmark cases, internal and external carbon
costs of our global manufacturing plants, investment inrenewable energy solutions and green electricity purchasecosts. With the approval of the Board of Directors andthe ESG Committee, the internal carbon fee based on
this pricing will be used for energy saving projects andthe acquisition of renewable energy, to implement carbon
management decisions and risk management integrationin the plants and business units.
Delta's energy conservation plans in main production sites help achieve carbon reduction targets.

84

Employee Relations
and Social
Engagement

Appendix5.3 Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

5.3 Energy Management
Strategic Direction

Commitments

KPI

Delta has long advocated andimplemented environmental
protection and energy conservationin practice. All new production
plants need to implement green
building designs, and multiple
energy-saving plans are actively
promoted within the production
plants, offices, and data centers.
We continue to complete ourenergy conservation objectives
and meet new conservation
milestones.

From 2009 to 2014, Delta reduced
the electricity intensity in its
production process by 50%. Delta
promised to widen the extent
of electricity reduction beyond
new production plants to include
R&D centers, office buildings,
and data centers. By using 2014as a benchmark, Delta plans tolower its electricity intensity by anadditional 30% by 2020.

Renewable Electricity Ratio*1

Key Initiatives for
Alignment with
SDGs

■ 2030 Target
100% use of renewable electricity■ 2020 Performance
Global sites:45.7%
Main Production Plants:55.1%
Expand the scope of energy

Main Production Plants*2

management and implement

Electricity Intensity (EI)

concrete targets

EI (Purchased electricity (kWh)/production value(MUSD))■ 2020 Performance
12.84% increase■ 2020 Target
30% reduction
Baseline year / 2014

Building*3

Develop products and solutions

Electricity Usage Intensity (EUI)

with high energy efficiency
2

EUI (electricity consumption (kWh) / space area(m ))■ 2020 Target
30% reduction■ 2020 Performance
20.5% reduction

Baseline year / 2014

*1 Delta's global business locations*2 Main production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China, DET plant
1, 5, and 6, and Taoyuan plant 1 and 2 in Taiwan, Cyntec Hsinchu, Huateng and Huafeng
plants.
*3 13 Buildings including Ruey Kuang, Yang Guang, Taoyuan Plant 3, Chungli 1 & 2, Tainan 1& 2, Dongguan R&D, Wujiang R&D, Shanghai R&D, Japan, , DAF, and Soest.
*4 Four data centers (Taipei Headquarters, Wujiang, DET, and American Headquarters).

Data Centers*4

Implement and promote green

Power Usage Effectiveness (PUE)

production plants and office

PUE((Total electricity consumption of a data center (ITequipment +Non-IT equipment) / IT equipment electricity
Usage))

buildings■ 2020 Target
30% reduction■ 2025 Target
37.5% reduction
Baseline year / 2020

Baseline year / 2014

■ 2020 Performance
33% reduction

Achieved85

About the
ESG Report

5.3 Energy Management

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.3.1 Energy Consumption
Through the years, Delta's energy sources have been fossil fuels such as natural gas, diesel, petroleum, and liquid petroleum, as well as purchased electricity from major production sites
in Taiwan, China and Thailand. Fossil fuels are mainly used to power emergency power generators, lawn mowers, forklifts, company vehicles, as well as ovens and stoves in dormitories
and cafeterias. In recent years, Delta has significantly changed the ratio of its fossil fuel consumption. This is mostly because Delta has gradually adopted purer natural gas, andoptimized the efficiency of boiler fuels to reduce usage. Diesel consumption in Delta's primary production plants in 2020 has been reduced by 9.4% from 2019. According to a GHG data
analysis, purchased electricity was the main source of Delta's GHG emissions (about 95%).

Energy Consumption Statistics

Attribute

Classification

Item

Purchased Electricity(MWh)Natural Gases(GJ)
DieselInput

Energy(GJ)
Gasoline(GJ)
Liquid Petroleum Gases
(GJ)

2017

2018

2019

2020

2020

Main Production
Plants * 1

Main Production
Plants * 1

Main Production
Plants * 1

Main Production
Plants * 1

Overall Production
Plants * 2

492,636486,614494,728

537,958

540,257

85,44597,52788,816

88,94589,522

13,112

11,540

8,031

7,279

7,321

10,212

8,877

3,371

5,128

5,128

177,603

174,427

154,092

154,944

154,944*1 Main production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China, DET plant 1, 5, and 6, and Taoyuan plant 1 and 2 in Taiwan, Cyntec Hsinchu and Huafeng plants are within the scope of the
SBT commitment.
*2 Overall production plants include Delta's main plants and Eltek production plants acquired after 2015 (plants in the United States and India).
*3 The fuel heating value of each plant adopts fixed data, including natural gas: 9,000 kcal/m3, diesel: 10,200 kcal/kg, gasoline: 10,300 kcal/kg, and 1 MWh is equivalent to 3.6 GJ for unit conversion.

865.3 Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Energy Conservation Performance of Delta's Energy Utilization
Buildings

Main Production Plants

Data Centers2020 EI was 66,461 kWh/MUSD for Delta's main
production plants, a decrease of 0.29% compared to2019; an increase of 12.84% compared to 2014.

The EUI of 13 buildings in 2020 was 133 kWh / m2; adecrease of 3.8% compared to 2019; a decrease of
20.5% compared to 2014.

The PUE was 1.32 for Delta's 4 data centers in 2020, a
decrease of 5.9% compared to 2019; a decrease of 33%
compared to 2015.

The main reasons are as follows:

The main reasons are as follows:

The main reasons are as follows:• The electricity usage in 2020 grew 30.1% compared to2014• The production value in 2020 grew 15.3% compared to2014• International trade and policies influences led to replanning of production layout• Increase in electricity usage for new plants, production,
air conditioning and air compressors• Addition of HVDC in laboratories• Shortened the operating hours of chillers• Replacement with high efficiency water pumps,
inverters, and chillers• Adjustment of chiller outlet temperature to 3°C• Chiller efficiency optimization in the data centers• Automatic energy consumption control of cooling water
tower• Automatic energy saving control of chiller bypass valve• Chiller maintenance5.3.2 Energy Conservation Projects
Establishment of Delta Energy Online and Continuous Promotion ofEnergy Conservation Projects
In 2011, Delta established a cross functional energy management committee, and an Energysaving Technology Team was further organized within the Committee. Over the years, the team has

Delta implemented a total of

2,270 energy saving projects
in 10 years

2011

234 Projects
16,923 kWh of Electricity

implemented various energy conservation and improvement measures for public facilities such as thesintering furnace, reflow furnace, wave soldering furnace and burn-in production plant. By coordinating
firsthand experience with energy conservation from internal and external consultants, the team is able

2020

279,387 thousand

Saved

kWh of electricity saved

to implement these practices at all primary production plants around the world.
From 2011 to 2020, each primary production plant has continued to implement energy conservationand carbon reduction measures (see table below). The company put 234 energy conservation projects

reduction of 216,802
metric tons of CO2e

into practice in 2020 and saved approximately 16,923 kWh of electricity, equivalent to approximately
9,328 tons CO2e. Delta implemented a total of 2,270 energy saving projects from 2011 to 2020 with anestimated 279,387 thousand kWh of electricity saved, equivalent to a reduction of 216,802 tons CO2e.
87About the
ESG Report

5.3 Energy Management

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Energy Saving Practices for Main Production Plants from 2011 to 2020
No.

Energy Saving Subject

Statistical Item
Cases

1

2

3

4

5

Air Conditioning Ventilation Systems

Air Compressors

Injection Molding Machines

Lighting Systems

Burn-in Recovery Systems

Process Improvements

496

Electricity Savings per Year (MWh)

3,199

50,736

Carbon Reduction per Year (Metric Tons)

2,110

37,618

Cases

13

203

Electricity Savings per Year (MWh)

1,163

21,060Carbon Reduction per Year (Metric Tons)

886

15,663

Cases

2

28

Electricity Savings per Year (MWh)86

14,986

Carbon Reduction per Year (Metric Tons)

65

12,983

Cases

18

164

Electricity Savings per Year (MWh)253

12,340Carbon Reduction per Year (Metric Tons)

201

13,580

Cases

10

120

Electricity Savings per Year (MWh)

1,500

50,680Carbon Reduction per Year (Metric Tons)

1,191

38,431

99

779

Electricity Savings per Year (MWh)5,10257,524

Carbon Reduction per Year (Metric Tons)

3,879

44,5655442

Electricity Savings per Year (MWh)1,295

67,736

Carbon Reduction per Year (Metric Tons)

996

53,963

Cases

234

2,270

Electricity Savings per Year (MWh)16,923279,387

Carbon Reduction per Year (Metric Tons)

9,328

216,802

Cases
7

Other (Management, etc.)

Total

Cumulative 2011-2020 *

49

Cases
6

2020

* Electricity emission coefficient in Taiwan was 0.509 kg CO2e / kWh in 2019; the emission coefficients of China's regional power grid in 2019 were 0.7921 kg CO2e / kWh in Eastern China, 0.8587 kg CO2e /kWh in Central China, and 0.8042 kg CO2e / kWh in Southern China; the electricity emission coefficient in Thailand in 2019 was 0.4999 kg CO2e / kWh.

88

Appendix5.3 Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.3.3 Increased Applications of Renewable Electricity
Joined the RE100 Initiative
Delta announced that it has joined the RE100, a global renewable electricity initiative, and has pledged to achieve the goal of 100% renewable electricity and carbon neutrality by 2030 for
all of Delta's global locations. We are the first company in Taiwan's high-tech manufacturing industry to commit to achieving the RE100 target by 2030.
Delta's operations are located across 5 continents and we will focus on energy conservation, self-generated solar power, and investment in renewable electricity plants. At the sametime, we will evaluate the maturity of the local green power market, and will use a Power Purchase Agreement (PPA) or Renewable Energy Certificates (RECs) to meet the commitment
targets. By joining the RE100 Initiative, we will further drive the development of green energy in the supply chain, provide our customers with a core energy saving and carbon reduction
technology experience, and prepare the industry to achieve 100% renewable electricity use and carbon neutrality.

2014

2016

2017

2018

2019

2020

• Dongguan, Wujiang andWuhu plants in China
participated in the"Golden Sun Demonstration Engineering" project,in which solar power
generation systems were
established at the plants.

• Taoyuan Plant 2, Cyntec
Huateng and Huafeng.
Plants established solar
power generation
systems at the plants.

• Chenzhou plant in China
established solar power
generation systems.

• Wujiang and Wuhu plants
in China expanded solar
power generation
systems.
• Purchased International
Renewable Energy
Certificates (I-RECs) in
China.

• 10% of the contracted
capacity of renewableelectricity was installed in
Taiwan.

• Dongguan and Wujiang
plants in China, DET,
American Headquarters,
and Soest site in Germany all completed theinstallation of the solar
power system.
• Taiwan headquarters
negotiated a long-term
PPA for green power
procurement.

895.3 Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Formal Establishment of Delta's Green Energy Team
Delta is committed to increasing the use of renewable electricity, and long-term PPAs are an important means of achieving RE100 in the liberalized electricity market. Delta formallyestablished the Delta Green Energy Team in 2021 by integrating its interdepartmental units in plant affairs, finance, procurement, legal affairs, and the Corporate Sustainability
Development Office. In Taiwan, we first negotiate with well-known domestic and foreign power sellers / generators, select sites with low environmental impact and sustainable power
generation, conduct on-site surveys and evaluations, and sign long-term PPA contracts for the purchase of green power. In the future, we will successfully replicate this long-term PPA
contract model for other regions to achieve Delta's goal of a global RE100 presence.

Delta's Renewable Electricity Utilization Trend

55.1%
In 2020, the solar PV systems
at Delta’s main plants generated
25.3 million kWh of solar powerand Delta purchased renewableenergy certificates for 285
million kWh of renewableelectricity. Delta's electricity
consumption from renewableelectricity was 55.1%, which
is approximately 45.7% ofrenewable electricity used at
Delta's global sites.

244,697
Compared to before the use of
PV systems, Delta’s use of selfproduced solar energy decreased
carbon emissions by 17,458 metrictons CO 2 e and the purchase ofrenewable energy certificates
reduced 227,240 metric tons CO2e,
for a total of 244,697 metric tons
CO2e in reduction.

90

Plant-Owned Solar Power in Main Production Plant*1 (MWh)Renewable Energy Certificates (MWh)Non-renewable Electricity (MWh)Power Purchase Agreement (PPA) (MWh)Percentage of Renewable Electricity in Main Production Plants

RE100*2
Target100%

60%
Compared to the previous
year, the Delta’s own useof self-produced solar
energy increased by
9%. With the purchaseof renewable energy
certificates, Delta
increased its use of green
electricity by a total of
60%

55.1%

44.1%
21.5%
1.3%

1.2%

1.5%

2014

2015

2016

2.8%
2017

2018

2019

2020

2030

* 1 Scope of main production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China; DET plant 1, 5, and 6 in Thailand; Taoyuan plant 1 and 2,
Cyntec Hsinchu and Huafeng plants in Taiwan are within the scope of the SBT commitment.
* 2 The Scope of RE100 commitment will expand to all Delta's global sites.

5.3 Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.3.4 Promotion of Energy Conservation with Green Buildings
Since the construction of Delta's first green building at the Southern Taiwan Science Parkin 2006, Delta actively promised all future new plants and shall implement green building
concepts. By 2020, Delta has built and donated 28 green buildings and 2 green data centersaround the world.
Delta continues to expand products and energy-efficient solutions in green buildings andhas received certification from the US Green Building Council (USGBC), the UK Building
Research Establishment (BRE), BREEAM, Ecology, Energy-Saving, Waste Reduction, andHealth (EEWH) system in Taiwan, and the Green Building Evaluation Standards in China.
With the inauguration of green buildings, Delta has incorporated diverse greening into plant
areas, ecological ponds, and other environmentally-friendly designs with positive benefits
for biodiversity. Delta also joined the narrative in the United Nations Climate Change
Conference, sponsored green building design contests, organized green building exhibitions,published books such as "Build Green Buildings with Delta", and released microfilms topromote green buildings.
Delta has autonomously set standards to establish comparisons based on the EUI (kWh /m2) of local building standards*1 each year. We calculate energy savings of green buildings
including 15 plants and buildings as well as 5 green buildings donated to academic
institutions in reference to the ISAE 3000 Assurance standard. In 2020, Delta's global
certified green plants and buildings collectively saved, in total, 16.82 million kWh ofelectricity and reduced carbon emissions by approximately 10,837 tons CO2e. (Please refer
to Chapter 6.6.1 for energy savings from the 5 donated green buildings)
In addition, Delta uses the power usage effectiveness (PUE) of data centers as the baseline
to evaluate energy savings. In 2020, Delta's certified data centers collectively saved a totalof 257,766 kWh of electricity, and reduced carbon emissions by approximately 203 tons
CO2e.

Delta has built and donated 28 green buildings and 2 green data centers around the world.

*1 Delta calculates EUI of each green building in line with the methodologies from the literatures cited on pages 92 and 93. Annual electricity usage refers to purchased electricity not including self-generated
solar power. Accordingly, the following are excluded from EUI calculation: lab electricity (Shanghai R&D Center, Taipei Headquarters, Taoyuan Technology Center, Taoyuan Plant 5, Tainan Plant 1 and 2,
Chungli R&D Center), data center electricity and area (Americas Headquarters and Taipei Headquarters), production electricity usage (Taoyuan Plant 5), unused area and indoor parking area (for applicablebuildings).

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5.3 Energy Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Energy-saving Solutions Adopted by Delta Green Buildings and Their Benefits

EMEA Headquarters(Inaugurated in 2017)
BREEAM Very Good
• 2020 EUI: 129 < EUI Baseline: 133.17*7• Highest energy saving rate to date: 65%(Compared to non-residential buildings)

India Rudrapur Plant

Shanghai R&D Building

Beĳing Office Building

Wujiang Data Center(Inaugurated in 2011)(Inaugurated in 2012)(Inaugurated in 2015)

LEED Gold

LEED Silver

LEED Platinum (Building
Renovation)• 2020 EUI: 45 < EUI Baseline: 88.2*3• 2020 EUI: 41 < EUI Baseline: 124

LEED V4 ID + C Gold
*4

• Highest energy saving rate to date:
73% (Compared to office buildings)• Highest energy saving rate to date:
49% (Compared to office buildings)• 2020 PUE: 1.3• Highest energy saving rate to date: 57%(compared to 2015)• Electricity savings: 206,690 kWh

India Gurgaon Plant

India Mumbai Office Building(Inaugurated in 2008)(Inaugurated in 2011)(Inaugurated in 2015)

LEED-India Gold

LEED-INDIA Platinum

LEED Platinum• 2020 EUI: 57 < EUI Baseline: 210*5• 2020 EUI: 83 < EUI Baseline: 210*5• 2020 EUI: 71 < EUI Baseline: 210*5• Highest energy saving rate to date: 76%(Compared to commercial buildings)• Highest energy saving rate to date: 60%(Compared to commercial buildings)• Highest energy saving rate to date: 77%(Compared to commercial buildings)
DET Plant 5(Inaugurated in 1990)
LEED Gold• 2020 EUI: 648 > EUI Baseline: 640*8• Highest energy saving rate to date: 23%(Compared to pre-renovation plant)* 1 <Bureau of Energy, Ministry of Economic Affairs> 2019 Energy Audit Annual Report for Non-Productive Industries (P.24): 160.9KWh / m2 (Office buildings, parking lots not included)* 2 <Architecture and Building Research Institute, Ministry of the Interior> 2019 Green Building Evaluation Manual of the Architecture and Building Research Institute of Ministry of the Interior-Basic Version (P.180):
154 KWh / m2 (Air-conditioned general factory operation area)* 3 <Shanghai Municipal Commission of Housing, Urban-Rural Development and Measurement>2019 Shanghai Government Office Building and Large Public Building Energy Consumption Monitoring andAnalysis Report (P.23): 88.2 KWh / m2 (Office buildings, parking lots not included)* 4 <The Energy Foundation> Study on Energy Conservation Potential and Promotion Mechanism for Civil Buildings in Beĳing (P.25): 124 KWh / m2 (Office buildings, parking lots not included)92About the
ESG Report

5.3 Energy Management

A Word from
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Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Multi-purpose building in AKO Energy
Park in Japan

America Headquarters(Inaugurated in 2017)

LEED Platinum

LEED Gold

CBE Annual Livable Buildings Award• 2020 EUI: 82 < EUI Baseline: 165.57*9• 2020 EUI: 7 < EUI Baseline: 166.88*6• Highest energy saving rate to date:
50% (Compared to green building
application documents)• Highest energy saving rate to date: 96%(Compared to office buildings)

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix(Inaugurated in 2015)

Taipei Headquarters -Taoyuan R&D Center

Taoyuan Plant 5

Chungli R&D Center

Ruey Kuang Building(Inaugurated in 2011)(Inaugurated in 2015)(Inaugurated in 2017)(Inaugurated in 1999)

LEED Gold, EEWH Gold

LEED Gold, EEWH Gold

LEED Gold

EEWH-RN Diamond• 2020 EUI: 87 < EUI Baseline: 160.9*1• 2020 EUI: 140 < EUI Baseline: 154*2• 2020 EUI: 98 < EUI Baseline: 160.9*1

LEED Platinum (Building Renovation)• Highest energy saving rate to date: 53%(Compared to office buildings)• Highest energy saving rate to date: 19%(Compared to Air-conditioned generalfactory operation area)• Highest energy saving rate to date: 45%(Compared to office buildings)

Delta Headquarters Data Center

Tainan Plant Phase I

Tainan Plant Phase II(Inaugurated in 2014)(Inaugurated in 2006)(Inaugurated in 2013)

LEED V4 ID + C Platinum (first in theworld)

EEWH Diamond

EEWH Diamond• 2020 EUI: 106 < EUI Baseline: 160.9*1• 2020 EUI: 61 < EUI Baseline: 160.9*1• 2020 PUE: 1.32

• Highest energy saving rate to date: 38%(Compared to office buildings)• Highest energy saving rate to date: 65%(Compared to office buildings)• 2020 EUI: 83 < EUI Baseline: 160.9*1• Highest energy saving rate to date: 58%(Compared to office buildings)• Highest energy saving rate to date: 10%(compared to 2015)• Electricity savings: 51,076 kWh* 5 <UN and Indian Bureau of Energy Efficiency> Energy Efficiency Improvements in Commercial Buildings (P.14): 210 KWh / m2 (Commercial buildings, parking lots not included)* 6 <ENERGY STAR> Technical Reference of the 2018 U.S. Energy Use Intensity by Property Type (P.4): 166.88 kWh / m2 after conversion (Office buildings)* 7 <European Commission> European Commission Buildings Database: 133.17 kWh / m2 (2014 Netherland nonresidential buildings)* 8 <LEED 2009 for Existing Buildings Operations and Maintenance Rating System> DET Plant 5 Green Building Application (According to the LEED 2009 for Existing Buildings Operations and Maintenance)Baseline year 2010-2012 average EUI: 640 kWh / m2.
* 9 AKO green building application documents (according to LEED v4 commercial interiors, retail, hospitality minimum energy performance simulation requirements) simulation baseline value: 165.57 kWh / m2.

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5.4 Water Resource
Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.4 Water Resource Management
Key Initiatives for
Alignment with SDGs

Strategic Direction

Commitments

KPI

Enhance the effectiveness of

In response to climate change, aMain Production Plants*1

water resource management

stable water supply has become

measures, pursue optimized

a global issue. To fulfill our social

water consumption efficiency at

responsibility and to respond to

production plants, opt for water-

the global water shortage issue,

saving equipment, increase water

Delta will reduce its overall Water

recycling rate, lower ineffective

Productivity Indicator (WPI) by

use, and promote relevant

30% before 2020, using 2015 asadvocacy training.

the base year.
Delta established water

WPI (purchased water usage (metric ton)/
Production value (million USD)
■ 2020 Target
30% reduction

Established an assessment model as theBaseline year : 2015

■ 2020 Performance
30.9% reduction

Achieved

Company's own risks

Baseline year : 2015

■ 2025 Target
10% reduction

conservation targets for 2021

Baseline year : 2020

after internal re-examinationin 2020. We shall continue tobaseline for subsequent improvement of theEstablished reduction targets and water
consumption surveillance system

Building*2

enhance the resilience of water
management amid climate change
and actively search for suitable
solutions to increase Delta's

WCI (purchased water usage (metric ton)
/ Capita)■ 2020 Target
30% reduction

capacity for flexible adjustments inface of severe pressure on water
resources in the future.

Promoted water source reduction andBaseline year : 2015

■ 2020 Performance
35.8% reduction

improved water recycling

Achieved
Baseline year : 2015

■ 2025 Target
10% reduction
Baseline year : 2020
*1 Main production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China, DET plant 1, 5, and 6, and Taoyuan plant 1 and 2 in Taiwan, Cyntec Hsinchu, Huateng and Huafeng plants. Add production
plants of Taoyuan plant 5, and Pingjhen in Taiwan and DET plant 3 of 2025 target scope.
*2 8 buildings including Ruey Kuang, Yang Guang, Taoyuan Plant 3, Chungli 1 & 2, Tainan 1 & 2, and Shanghai R&D; excluding Dongguan R&D, Wujiang R&D, Japan, USA, and Germany.

94

5.4 Water Resource
Management

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the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.4.1 Identification of Water Risks and Response Measures
Establish Risk Assessment Models

Risk Identification and Assessment Procedures

The Aqueduct Water Risk Atlas developed by the World
Resources Institute (WRI) has been widely adopted
across the world. The baseline water stress measures

Baseline and Future
Climate Model Settings

Incorporate GHG emissions models into the General Circulation Models (GCMs)
to simulate future climate impact.

Weather Data
Extension

Use weather generator for weather data to generate daily temperature and rainfall
data for simulation and analysis of the water resource models

Water Resource
Simulation

Water resource simulation is used to calculate the simulated river flow volume or
groundwater replenishment under climate change

Calculating Future Water
Resource Demand

Consider both the impact of climate change and social and economic development for calculation and settings

Water Resource System
Water Supply Load Analysis

Existence of a demand and supply gap in the water resource system under futurewater resource demand models

Water Resource
Risk Analysis

Adopt a water supply simulation model through a water resource system tocalculate baseline periods and water resource system risks and resilience underclimate change

the ratio of total water withdrawals to available renewablesurface and groundwater supplies but the system lacks
data from Taiwan for multiple indicators. Delta adopted thedata compiled in the Hydrological Year Book for use as thebaseline to replace WRI's analysis results for Taiwan toensure that correct decisions can be made in the event ofa water shortage caused by climate change and increase
the number of days of sustained operations in the eventof water shortages. The results calculated based onenhanced indicators make them more significant. After theweighted scoring based on the aforementioned analysis
results and considering the impact on operations, water
usage data, and occurrences of water shortages, Taoyuan
Plant 2 and Cyntec Huafeng were ranked as the top 2
plants with highest risk levels out of all plants.

95

About the
ESG Report

5.4 Water Resource
Management

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.4.2 Consumption and Effectiveness of Water
Resources

Risk Assessment
With regard to direct operations, Delta has established its own water conservation targets
and selected Taoyuan, an area prone to droughts, for the establishment of a "Delta Water

Implementation of Water Resources Management

Risk Assessment System". In addition to providing a basis for risk assessment of watersupply thresholds acceptable to Delta plants, the System also provides simulation andDelta is keenly aware of the connections between water safety and the welfare of people

analysis for future development of the region and the Company. According to RCP 2.6 (2°C

and industries. The issues have extended from the environment to human rights andwarming) and RCP 8.5 (Business as Usual, BAU) scenarios of IPCC AR4, Delta evaluatedeconomic development. Among the 17 Sustainable Development Goals of the United

the current conditions and future water shortage risks to enhance regional water resource

Nations, SDG 6 "Clean Water and Sanitation" aims to ensure availability and sustainable

resilience and achieve sustainability in water consumption. The risk values derived

management of water and sanitation for all.

from the analysis are used as the basis for follow-up financial impact estimates. Delta
shall continue to use the assessment methodology for high-risk plants and plan suitable

Smart Monitoringmeasures for adaptation.

Produce
Future Models
and Indicators

SystemDynamic
Model
Simulation of
Water

Delta completed the electronic water meter installation in production
plants and buildings within the management area and combined themwith the Delta Energy Online system to monitor water consumption.
River Flow
Simulation

Produce
Weather
Station Data

Set 8 Future
ModelsRisk Adaptation and Response

Improving Efficiency
Delta actively increases water consumption efficiency at the process
end and increases output under the same water consumption
conditions to reduce the risks of water resources.

Companies must take both adaptive and mitigation measures in response to climatechange. Delta uses the TCFD framework for management and disclosure and establishes
related response measures based on these risks. As water resources are crucial elements

Pollution Reductionin Delta's production process, Delta has actively improved wastewater treatment andrecycling and evaluated individual risks of the sources of water resources for formulatingcorresponding measures. This ensures adequate response capabilities and making themost resilient adjustments before risks arise to implement the sustainable management ofwater resources.

96

Sewage treatment and wastewater treatment in plants effectively help
reduce the negative impact on the environment.

About the
ESG Report

5.4 Water Resource
Management

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Water Conservation Performance

Promotion of Water Conservation and Water Recycling
The sources of water of Delta's overall production plants*1 consist mostly of tap water (99.0%) which is mainly used

Main Production Plants

in cooling towers, restaurants, and daily general sanitation for cleaning bathrooms. In 2020, Delta's total volume ofwater withdrawn for overall production plants was 3,788.6 megaliters (rainwater recycling 37.1 megaliters). Total water
consumption was 1,268.3 megaliters and water discharge was 2,520.3 megaliters (91.4% domestic sewage and 8.6%
process wastewater). Total volume of water recycled *2 was 508.7 megaliters and water recycling rate *3 was 11.9%.

2020 Water productivity intensity (WPI) was 463
metric ton/MUSD for Delta's main production plants.
A decrease of 8.3% compared to 2019; and a 30.9%
decrease compared to 2015.

The total volume of water withdrawn for buildings *4 was 190.6 megaliters (rainwater recycling 19.0 megaliters). Total
water consumption was 51.6 megaliters and water discharge was 139.0 megaliters. Total volume of water recycled

The main reasons are as follows:

was 22.1 megaliters and water recycling rate was 11.4%. A total of 80 new solutions for production sites and buildings• Additional condensate recycling• Increased wastewater recycling rate

were implemented in 2020, including: rainwater recycling, condensate recycling, outlet pressure control, and equipment
adjustment and improvement, saving a total of 183.6 megaliters of water consumption.

Buildings

19.0

37.1

megaliters

Total Water
Consumption

51.6

Rain

megaliters

The main reasons are as follows:

171.5

3,751.5

megaliters

megaliters

Buildings

megaliters

The WCI of 8 buildings in 2020 was 21.9 m3/capitayear, a decrease of 10.5% compared to 2019; and a
35.8% decrease compared to 2015.

Overall
Production Plants

City Water

1.8

471.6

megaliters

megaliters

Total Water Withdrawn
190.6 megaliters

Total Water
Consumption• Improvement of the water-cooling ice machine• Cooling tower concentrated drainage reused fortoilet flushing• Irrigation and fish pond management measures

1,268.3
megaliters

Total Water Withdrawn
3,788.6 megaliters

Reclaimed Water

139.0 megaliters

2,520.3 megaliters
Domestic Sewage
Process Wastewater

91.4%
8.6%

*1 Overall production plants: Dongguan, Wujiang, Wuhu,
Chenzhou plants in China; DET plant 1, 5, and 6 in Thailand;
Taoyuan plant 1 and 2, Cyntec Hsinchu, Huateng and Huafeng
plants in Taiwan; and the production plants of Eltek acquired
after 2015 ( plants in the United States and India )*2 Total water recycled = (reclaimed water + rainwater)*3 Water recycling rate = total water recycled / (total water
withdrawn+ reclaimed water)*4 8 buildings including Ruey Kuang, Yang Guang, Taoyuan Plant
3, Chungli 1 & 2, Tainan 1 & 2, and Shanghai R&D; excluding
Dongguan R&D, Wujiang R&D, Japan, USA, and Germany.

97

About the
ESG Report

5.4 Water Resource
Management

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Wastewater Management
All wastewater (sewage) from Delta's main production plants and buildings is either properly treated by suitable wastewater treatment facilities, or directly discharged to wastewater(sewage) plants designated by the local management center. For plants where no flow meter is installed, the sewage discharge is estimated to be 80% of the water withdrawn; while
wastewater discharge of Cyntec Hsinchu and Cyntec Huafeng is calculated by actual monitoring and inspection of discharge volume. The quality of discharge across all plants is incompliance with current legal regulations, and we regularly test the waste (sewage) water quality to ensure that no material impact is posed to the surrounding environment from receiving
water. No material leakage or overflow occurred at any production plant in 2020

Water Discharge by Quality and Destination

Region

98

Plant

Total
Process
Wastewater

Concentration of Effluent (mg/L)(Megaliter)

Total Suspended
SolidsBiochemical
Oxygen Demand

Chemical
Oxygen Demand

Processing Unit

Receiving
Waterbody

TaiwanCyntecHsinchu

194.9

1.3

18.1

68.0

Hsinchu Science Park
Wastewater Treatment
Company

Keyaxi Rivery

Mainland
China

CyntecHuateng

21.8

17.0

-

16.0

Yundong Wastewater
Processing Company

Wusongjiang River5.5 Waste Management

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Overview

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Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.5 Waste Management

Key Initiatives for
Alignment with SDGs

Strategic Direction

Commitments

KPI

Strengthen waste management

In pursuit of sustainable use

Main Production Plant Waste Reduction*1

measures, implement sourceof resources and avoiding the

reduction, increase resource reuse

depletion of the earth’s resources,

rate, and promote closed cycle of

Delta promised to reduce ourresources to maximize resource

overall waste intensity by 15% byutilization.

2020, using 2015 as a base year.
In the future, we will continue
to improve the diversion rate ofwaste through reduction, reuse,

Waste Intensity (WI) of production plants;
WI of production plants = total waste volume /production value in MUSD
■ 2020 Target
15% reduction

Achieve effective use of resources throughinput and output resource inventory■ 2020 Performance
13.2% reduction

and recycling to reduce ourBaseline year / 2015environmental impact.
Building Waste Reduction*2
Reduce waste generation and environmental
Waste Generation Intensity (WGI) of buildings;
WGI of buildings = total waste volume / capitayear*1 Main production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China,
DET plant 1, 5, and 6, and Taoyuan plant 1 and 2 in Taiwan, Cyntec Hsinchu,
Huateng and Huafeng plants.
*2 8 buildings including Ruey Kuang, Yang Guang, Taoyuan Plant 3, Chungli 1 &2, Tainan 1 & 2, and Shanghai R&D; excluding Dongguan R&D, Wujiang R&D,
Japan, USA, and Germany.
*3 Waste diversion rate = reuse + reduce + recycle + thermal technologies +anaerobic digestion + biofuel + composting) / total mass discarded material; ofwhich, the highest percentage of thermal technologies is less than 10%.
*4 Delta's 15 main production plants (Dongguan, Wujiang, Wuhu, Chenzhou plants in
China; DET plant 1, 3, 5, and 6; Taoyuan plant 1, 2, and 5, and Pingjhen in Taiwan;
Cyntec Hsinchu, Huateng and Huafeng plants).

impact through prevention, reduction,
recycling and reuse■ 2020 Target
15% reduction■ 2020 Performance
26.4% reduction

Achieved
Baseline year / 2015

Waste Diversion Rate*3■ 2025 Target
Main production plants*4 reached 100%99

5.5 Waste Management

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

5.5.1 Enhance Circular Recycling and Reuse

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Delta has started its own waste reduction, but needs to collaborate throughout the value
chain to use waste effectively and reduce waste generation. Through collaboration with

Introduction of International Certification and Methodology

its value chain, the comprehensive output performance of Delta's plants consists of thetotal mass of discarded material at 48,845.7 tons, and the total mass of diverted waste

Since the introduction of UL 2799 zero waste to landfill certification at Delta's Dongguan

at 48,259.3tons, with a diversion rate of 92.2%, of which the waste to energy recovery

plant in 2019, we have introduced the concept and methodology into plants across theexceeds 10%, which is calculated as 10%.

world for waste monitoring and analysis for possible improvements. We will gradually
increase the resource recycling rate, and move towards the goal of zero waste landfill. In

Non-hazardous Waste (ton)2020, Delta's Wujiang plant was implemented and will continue to expand horizontally to
28,051.4

global plants.

5.5.2 Waste Generation and Performance
Implementation of Waste Management
Delta established the "Water Conservation and Waste Reduction Management

7,297.8
305.1

13.6

Landfill

Incineration(Without Energy Recovery)

Committee" in 2016. In order to achieve sustainable use of resources and ensure proper
handling of waste, the Committee analyzed the sources and types of waste output, andWaste to Energy
Recovery

Recycleidentified potential for reuse by combining respective internal and external resources.
Delta continued to promote waste reduction measures, and a total of 111 waste reduction
projects were implemented in the main production plants and buildings in 2020, including:recycling of packaging materials, design changes to reduce metal, and sludge moisture

Hazardous Waste (ton)content reduction, which resulted in a total of 7,774 metric tons of waste production
2,572.9

savings.
Statistically, in 2020, the weight of waste at overall production plants for outsourcing was
39,447.0 metric tons and the total weight of waste generated at the main production plants
for outsourcing was 39,336.9 metric tons, of which, non-hazardous waste accounted for
828.4

35,667.9 metric tons (90.7%), and hazardous waste accounted for 3,669.0 metric tons
(9.3%).

231.0
36.7
Landfill

100

Incineration(Without Energy Recovery)

Waste to Energy
Recovery

RecycleAbout the
ESG Report

5.5 Waste Management

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Delta Plant Value Chain Waste Flow Chart

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Waste Reduction Performance
Main Production Plants
Carton5.1%
Reuse of packaging
materials

2,491.2 metric tons

2020 Waste intensity (WI) was 4.86
metric ton/MUSD for Delta’s main
production plants. A decrease of
15.1% compared to 2019; a decreaseof 13.2% compared to 2015.

Paper

Closed-loop cycle ofwaste cartons

5,568.4 metric tons
Scrap metal,
plastic waste,etc.

The main reasons are as follows:

62.7%
Recycling
30,624.2 metric tons

Raw Material
Suppliers
Main Production
Plants16.6%• Carton recycling for packaging
materials• Injection molding jig improvement to
reduce waste plastic material• Improvements in raw material
packaging to reduce usage

Waste to Energy Recovery
8,126.2 metric tons

Buildings

3.0%
Carton, tray and trailer reuse

1,449.3 metric tons

0.5%
Incineration(Without Energy Recovery)
244.6 metric tons

0.7%
Landfill
341.8 metric tons

The WGI of 8 buildings in 2020 was
110.71 kg / capita-year, a increaseof 7.5% compared to 2019; and adecrease of 26.4% compared to 2015.
The main reasons are as follows:• Internal recycling of waste materials• In-house ban on disposable cups
and cutlery* Refer to 4.5.5 for relevant information. The weight information of relevant packaging materials is calculated based on the average weight per unit (blister material 0.0186 kg, paper 0.036 kg, carton 1.2 kg,
pallet 16.2 kg)101

5.6 Green Products

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Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.6 Green Products

Key Initiatives for
Alignment with SDGs

Strategic Direction

Commitments

KPI

All Delta products comply with

Based on our vision for

Product energy savings pass by ISAE 3000 assuranceinternational safety standards

energy conservation andor international environmental

environmental protection,

regulations (e.g., EU directives

Delta is committed toincluding RoHS, WEEE,

continuous enhancement of

REACH, and China RoHS).

product energy efficiency andthe active development of

We assist clients' green

renewable energy solutions

marketing needs to display

through technical innovations

environmental certificationof products. We also mitigate

information such as Taiwan

environmental impact by

Green and Eco Label, US

introducing green designs in

ENERGY STAR, and 80 PLUS

each phase of the producton our products as required bylife cycle to facilitate productour customers.

responsibility and green
consumption.

■ 2020 Target
Product energy savings pass by ISAE 3000 assurance■ 2020 Performance Achieved
11 types of products have been assured by ISAE 3000
■ 2021 Target
Product energy savings continued to pass by ISAE
3000 assurance■ Medium and Long-term Targets
Set product energy saving goals

No breach of legal regulations or standards for
product / service provision and related usage

energy-efficient products
and cooperate with global■ 2020 Performancecustomers to fulfill the visionof an energy-saving and lowcarbon society.

Actively develop photovoltaic systems
and renewable energy solutions

Achieved

No violations■ 2021 Target
No breach of legal regulations or standards for product/ service provision and related usage■ Medium and Long-term Targets
No breach of legal regulations or standards for product/ service provision and related usage

102

Provide green innovations in products /services■ 2020 Target
No breach of legal regulations or standards for product/ service provision and related usage

We provide high-efficiency

Enhance product energy efficiency

Continue to provide eco-friendly
products

5.6 Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

5.6.1 Green Design

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

the integration of the existing international carbon emission factor database into our raw
material BOM list, establish green design rules for low-carbon products, as well as makeLife Cycle Assessment

an ongoing commitment to continuously improving product energy efficiency to reduceusers' carbon emissions.

Life Cycle Assessment (LCA) is a systematic analysis method for the environmental
impact caused in each phase: from acquisition of raw materials, manufacturing andStrategies for Lowering Environmental Impact of Products

assembly, sales and transportation, and use to final disposal. In order to reduce theimpact of products on the environment, Delta conducted full-scale LCA and Screening

We actively employ the following strategies to reduce the potential environmental impact

LCA on respective products according to the international standard ISO 14040 / 44, andduring each stage of the product life cycle.

introduced green design in each phase.
Product carbon footprint is the best example of Streamlined LCA (SLCA) in action. Delta
has a large variety of products, and for this reason, we calculate our carbon footprint invarious stages. Delta established a product carbon footprint calculation mechanism aswell as international carbon emission factor databases to create a platform of knowledge
that will contribute to green product R&D, and the selection of low carbon emission

Raw Materials

Manufacturing

Usage Managementof Environment-related
Substances

Energy Conservation
Plan for Carbon
Reductionmaterials. The knowledge and experience involved is then transferred abroad for use by
Delta's other production plants.
Since 2010, Delta has selected several representative products to perform product carbon
footprint research, and has completed the carbon footprint inventory and acquired PAS
2050 verification for products such as notebook external power supply units (adaptors),
DC brushless fans (DC fans) and PV inverters, and has continued to carry out selfinventory of PocketCell mobile power pack products. Since 2016, ISO 14067-1 carbon
footprint verification has been completed for products such as high-efficiency rectifier
modules TPS, 3900W and 1200W switch mode power supply units and electric vehicle onboard chargers year by year, going further into green and low carbon design.

Terminal
Processing

Strategies
for Lowering
Environmental
Impact of
Products

Design for Ease of
Product Dismantling
and Recycling

Downstream
Transportation
Adoption of Green
Packaging Materials

By summarizing the results of several products' LCA, it shows that the environmental
impact from the "use phase" of Delta's core products is currently most significant during
their actual life cycle, and "acquisition of raw materials" comes in second. Delta has
always strived to continuously improve the energy efficiency of our products to reduce
the environmental impact of the use phase. The ESG Committee resolved to continue

Usage
Enhancing Energy
Efficiency of
Products
103

5.6 Green Products

About theESG Report

Raw Materials
Reduction Goals andLocalized Management
Delta has built a green supply
chain to respond to climatechange. At its main productions i t e s i n C h i n a , Ta i w a n , a n d
Thailand, Delta promotes theinventory and disclosure ofs u p p l y c h a i n c a r b o n , w a t e r,
and waste management toeffectively respond to climatechange, promote greenhouse gas
reduction in the supply chain, andreduce the carbon footprint of raw
materials.

Manufacturing
Energy Conservation Plan
for Carbon Reduction
Delta's plants promote various
energy-saving measures tocontinuously reduce carbon
in the manufacturing stage of
products. The company put 234
energy conservation projects
into practice in 2020 and saved

A Word from
the Management

approximately 16,923 kWho f e l e c t r i c i t y, e q u i v a l e n t t oapproximately 9,328 metrict o n s C O 2e e m i s s i o n s . D e l t a
implemented a total of 2,270
energy saving projects from2011 to 2020 with an estimated279,387 thousand kWh ofelectricity saved, equivalent toa reduction of 216,802 metrictons of CO2e emissions.

Downstream
Transportation
Adoption of Green
Packaging Materials

Overview

Sustainable
Management

Communication
with Stakeholders

Usage
Enhancing Energy
Efficiency of Products
The continued improvement inenergy efficiency in our products
is a concrete expression of Delta's
corporate mission: "To provide
innovative, clean and energyefficient solutions for a better
tomorrow". As of now, Delta's
power management products
have achieved as much as 90%
energy efficiency, such as our
telecom power supplies with up to

98% efficiency, PV inverters witha peak conversion efficiency ofDelta employs green packaging
materials for all of our products,
u s i n g c o r r u g a t e d p a p e r,
cardboard, paper, and wooden
boxes, all in line with ourtransportation process needs.
Waste materials can be recycled,reused, or used repeatedly. For
example, in 2020, the weight ofrecyclable materials accounted
for approximately 32% of thewooden boxes, pallets, andpaper boxes used. The amount ofrecycled paper used accounted
for 96% of paper packaging.
Delta's High-efficiency PV Inverters

104

Corporate
Governance

Environmental
Protection andEnergy Savings

99.2% , and DC-DC converters
for vehicles with 96% efficiency.
Delta once again received theEnergy Star Sustained ExcellenceAward in 2020 and we received
ENERGY STAR Partner of theYear's Outstanding SustainabilityAward for 4 consecutive years
due to our products' superiorenergy efficiency and contribution
to the reduction of greenhousegas emissions.

Terminal
Processing
Design for Ease of Product
Dismantling and Recycling

Employee Relations
and Social
Engagement

Appendix

Delta designs its products foreasy dismantling and recycling.
We actively help B2B customers
improve the reuse rate andrecycling rate of waste electronics
products to conform to theenvironmental regulations of
the target region, such as for
the EU's WEEE directive. For
our own brand products, we arealso working with local recyclingorganizations to ensure the proper
recycling and ultimate disposalof waste products. For instance,
our charger / mobile power brandInnergie has registered with local
EU authorities and has joined
Germany's electronic waste
recycling system.

5.6 Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.6.2 Hazardous Substance Policy and Management
Since 2002, Delta has established the Delta Environmental Hazardous Substance Management Policy and Regulations. Delta's product design to manufacturing process, including
the components, process chemicals, jigs, and packaging materials that make up Delta's products, are all included in the management system to achieve the most comprehensive
management. It is Delta's responsibility and contribution as a global citizen to insist on producing excellent products that meet green regulations and enhance performance.

Monitoring Laws andUpcoming Regulations
In line with Delta's diverse productdevelopment, Delta continues to pay
attention to various regulations related
to hazardous substances, such as the"Restriction of Hazardous Substancesin Electrical and Electronic Equipment
Directive" (RoHS), which is the main
regulation for electronic products in theEuropean Union; the European Union's"Registration, Evaluation, Authorization
and Restriction of Chemicals" (REACH);"Persistent Organic Pollutants
Regulations" (POP); the automotive
industry's mainstream "Global Automotive
Declarable Substance List" (GADSL);
the Safe Drinking Water and Toxic
Enforcement Act of the United States,
also known as the "California Proposition65" (Prop65); the "Toxic Substances
Control Act" (TSCA) list of the U.S.
Environmental Protection Agency; toJapan's "Chemical Substances Control
Law" (CSCL).
We pay advance attention to theseregulations, and at least one year before
the implementation of the regulation,
we incorporate it into our management
standard and implement the introduction.

Delta’s Hazardous
Substance Process
Management System
Our main production plants are certified
with the IECQ QC080000 Hazardous
Substance Process Management
System, ensuring that Delta's hazardous
substance management standards are
consistently enforced throughout the
supply chain.
Delta has a complete internal Hazardous
Substance Control Process, frommaterial evaluation, material number
application, to production material number
management, all of which goes throughProduct Lifecycle Management (PLM)
for the management of material number
specifications, graphic documentation,and confirmation of classification(halogen-free, automotive, RoHS). We
use the Delta EC Suppliers exchange
platform as an interface to publish thelatest hazardous substance management
regulations. We subsequently obtain adeclaration based on the material number
and conduct new supplier evaluations
based on the same management
regulations.

Enforement andPractices
When there are significant adjustments
to external laws and regulations orDelta's policies, the Delta Environmental
Hazardous Substance Management
Policy and Regulations content will be
discussed across business groups toreissue the regulations and confirm theschedule. The frequency of adjustment isabout once a year.
Under the management regulations,each plant has established detailed
control procedures, including material
recognition, testing requirements,
report specifications, and declaration
requirements. Each plant has
dedicated staff responsible for handling
quality abnormalities and preparing
environmental management material
implementation plans. We have also
incorporated supplier-end management
and audit into the management scopeby integrating VQA (Vendor Quality
Assurance) supplier audits with incoming
material inspection and sampling, parts
engineering units, and materials units toestablish a complete hazardous material
management system.

Disclosure of
Substances Used
The composition of electronic products iscomplex, and the most major concernsof customers are the Substances of VeryHigh Concern (SVHC) under EU REACH
and RoHS exclusion-related statements.
Take power supplies for example, there
are 17 main hazardous substances in
Delta's electronic products, including resinmaterials and additives, metal surfaces,
electrical contact alloys, electrolyte
additives, ceramic material additives,
flame retardant, such as antimony
trioxide, boric acid, and siloxanes.
In addition to disclosing hazardous
substances in response to customer
demand, Delta has also begun tocompile data on all of Delta's hazardous
substance management indicators
in response to investor expectations.
For example, in 2020, all products inthe power supply business group cancomply with the IEC 62474 Material
Declaration for Products of and for theElectrotechnical Industry.

1055.6 Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Delta's Phase-Out Program for
Hazardous Substances

5.6.3 Eco-labels and Eco-declarations

Starting 20 years ago, Delta has eliminated hazardous

Type I Eco-labels

Type II Environmental Declarations

has been actively reviewing the materials used. In 2007,

Type I Eco-labels conform to the specification standards

Data collected from Streamlined Life Cycle Assessments

we established the Delta Halogen-Free Standard toof organizations or governments, and have been verified(SLCA) of several of our products shows that theensure that Delta's products comply with market trends

by third parties. Trademarks are easily identified by clientsenvironmental impact from the use phase of Delta's coreand regulatory requirements for the use of halogenatedand consumers.

products is most significant during their actual lifecycle.

components that do not comply with regulations, andsubstances.

We therefore implement product environmental information

Delta's Type I Eco-labels include the following:
Delta also continues to carry out more control anddisclosure while improving product energy efficiency,
and integrate this with the ISO 14021 Self-Declaredevaluations of flame retardants and plasticizers for

Taiwan Green Mark

Environmental Claims and the ISO 14025 Environmental

continuous optimization. For example, phosphorus-

44 projector products have obtained

Product Declaration (EPD).

based flame retardants were used in the past to replace

the Taiwan Green Markbrominated flame retardants to achieve the halogen-free

Delta launched the "EnergE" program for telecom power

goal (chlorine and bromine). But several phosphorus-

Taiwan Energy Labelsupplies in 2010 and assigns different ratings based on

based flame retardants were later found to be more

75 products have obtained the Taiwan

product performance in energy efficiency. They include abiotoxic, so they were phased out again, while a number

Energy Label (including indoor lightings,
road lightings, bathroom exhaust fans)green label for 95% to 96%, gold label for 96% to 97%,of phosphorus-based flame retardants and plasticizers
with higher biotoxicity have been banned. The phasing

and purple label for efficiency higher than 97% to help
customers distinguish between products.

out is expected to be completed by 2023 will exceed the

China Environmental Labelling

regulatory requirements.

71 products certified by China CEC
EnergE Product Label Examples

Chlorinated organic solvents, which contain CMR Level
1 regulated ingredients in the cleaning agent, has beenphased out from some Delta business groups and is
expected to be fully phased out by 2023.

ENERGY STAR Most Efficient
Products

88 energy saving ventilation fan
products awarded the ENERGY STAR's
Most Efficient Products

Efficiency > 97%

Efficiency 96%~97%

80 PLUS Certification

364 power supply products certified by
80 PLUS106

Efficiency 95%~96%

About the
ESG Report

5.6 Green Products

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.6.4 Energy Saving Benefits of Products
Delta continues to enhance product energy efficiency and to develop integrated green energy products, energy-saving products, and solutions, which help clients conserve moreenergy and achieve even higher cost-effective performance. Based on the shipment of power supplies, direct-current fans, uninterruptible power supplies, variable-frequency drives, LEDlamps, electrical ballasts, PV inverters, and direct-current EV chargers from China, Taiwan, and Thailand between 2010 and 2020, Delta's high efficiency products saved customers an
estimated 33.5 billion kWh of electricity and reduced carbon emissions by 17.80 million tons CO2e.
In 2020, Delta's products saved, in total, 2.07 billion kWh of electricity and reduced carbon emissions by approximately 1.06 million tons CO2e. In 2015, Delta was the first in theindustry to introduce product energy-saving calculations into ISAE 3000 assurance. Since then, product items have been added year by year, including energy-saving assurance of theuninterruptible power supply and TV power in 2018 and energy-saving assurance of LED drivers in 2019. Delta had accomplished assurance of ISAE 3000 product energy conservationfor 11 products by 2020.

42 million kWh

55 million kWh

Electronic Ballast

TV Power

55 million kWh
AC-DC Adapter

7.8 million kWh
LED High bay

34 million kWh
LED Driver

10 million kWh
PV inverter (PVI)

1.61 billion kWh
Server Power87 million kWh
Uninterruptible Power
Supply (UPS)

32 million kWh
Ventilation Fans

123 million kWh
LED Street Lights

7.7 million kWh
EV DC Charger1075.6 Green Products

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Eleven Types of Products Assured by ISAE 3000 in 2020
Product Name

Explanation for Calculation of Energy Savings

Assurance
Start Year

LED Driver

By comparing the efficiency of Delta LED driver to that of EU eco-design requirements for light sources and separate control gears*1, for the shipments of
the Delta OBM and 1 EU major customer in 2020, annual energy savings was 34 million kWh.

2019

Uninterruptible Power
Supplies (UPS)

By comparing the efficiency of Delta uninterruptible power supply (UPS) to that of EU Code of Code on Energy Efficiency and Quality of AC Uninterruptible
power supply systems (EU UPS CoC rev.2), for the shipments of the main UPS models*2 in 2020, annual energy savings was 87 million kWh.

2018

TV Power

By comparing the efficiency of Delta Open frame TV power to that of the minimum energy efficiency required by customer’s specifications, for shipmentsof the 20 main Open frame TV power models*3 in 2020, annual energy savings was 55 million kWh.

2018

PV Inverter

By comparing the efficiency of Delta PV Inverter (PVI) to the minimum average efficiency 97.5%*4 of the ENERGY STAR Market and Industry Scoping
Report, for the shipments of main PVI models*5 to North America and Europe*6 in 2020, annual energy savings was 10 million kWh.

2017

EV DC Charger

By comparing the efficiency of Delta EV DC Charger to the minimum efficiency 90% regulated by CHAdeMo, for the shipments of EV DC Charger in 2020,
annual energy savings was 7.7 million kWh.

2017

LED High Bay

Assuming that end-users installed Delta LED high bays to replace Metal Halide high bays, and by comparing the efficiency of Delta LED high bays
to the minimum efficiency requirements for the procurement of Metal Halide high bays (Distribution: Direct, LER: Closed) issued by the United States
Department of Energy, for the shipments of LED high bays in 2020, annual energy savings was 7.8 million kWh.

2017

LED Street Lights

Assuming that end-users installed Delta LED street lights to replace mercury street lights, for the shipments of LED street lights to Taiwan in 2020, annual
energy savings was 123 million kWh.

2016

Server Power

By comparing the efficiency of Delta Server Power to that of 80 Plus Bronze requirements, for the shipments of 14 major customers in 2020, annual
energy savings was 1.61 billion kWh

2016

Ventilation Fans

By comparing the efficiency of Delta ventilating fans to that of USA Energy Star or Taiwan Energy Label requirements, for shipments of products that havebeen certified by the USA Energy Star or Taiwan Energy Label in 2020, annual energy savings was 32 million kWh.

2016

AC-DC Adapter

By comparing the efficiency of Delta AC-DC adapters to that of EU eco-design requirements for External Power Supplies (EU 2019/1782), for shipmentsof the 46 main AC-DC Adapter models*7 in 2020, annual energy savings was 55 million kWh.

2016

Electronic Ballast

Assuming that end-users replace existing Magnetic Ballasts with Electronic Ballasts, for shipments of Delta Electronic Ballast for Fluorescent Lamps to 8
major customers in 2020, annual energy savings for end-users was 42 million kWh.

2015

*1 Laying down eco-design requirements for light sources and separate control gears pursuant to Directive 2009/125/EC of the European Parliament and of the Council and repealing Commission Regulations (EC) No 244/2009, (EC) No
245/2009 and (EU) No 1194/2012*2 Main product models and series are the single-phase UPS models which contains “RT” in the part number, and the 3-phase UPS models which contains “DH”, “NH”, “HP”, “HH”, “DS” and “DM” in the part number.
*3 Main product models are AP-P242AM A, AP-P242AM B, AP-P288AM B, AP-P321AM B, AP-P340AM A, AP-P341AM A, AP-P341AM B, AP-P348AM A, AP-P396AM A, AP-P397AM A, AP-P397AM-1 A, AP-P410BM A, AP-P410BM B, APP412AM-1 A, AP-P484AM A, AP-P484AM B, AP-P502AM A, AP-P125AM A, AP-P130AM A, AP-P180AM A. The minimum energy efficiency requirement of customer specifications for the first seventeen models mentioned above is 80%, andthe minimum energy efficiency requirement for the last 3 model is 85%.
*4 ENERGY STAR Market and Industry Scoping Report*5 Main product models and series are RPIM6A, RPIM8A, RPIM10A, RPIM15A, RPIM20A, RPIM30A120, RPIM50A 12s, RPIM70A, M88H121, M88H122, M125HV110, M125HV, M36U121, M42U121, M60U121, M60U122, M80U121, M80U122.
*6 Countries of shipments to Europe are Germany, France, Spain, Netherlands, Luxembourg, Romania; US states of shipments to North America are Maryland, Minnesota, Oregon, Arizona, California, Georgia, New Jersey, New York.
*7 Main product models are ADP-39CB BA, ADP-45AGBA, ADP-45BG BA, ADP-45BG BC, ADP-45EG AA, ADP-45FE BE, ADP-45FE FA, ADP-45FE FC, ADP-45HG BA, ADP-65AE BA, ADP-65DE BA, ADP-65HB HCB, ADP-65HB HCE, ADP65KE BB, ADP-65MD AB, ADP-65ME BA, ADP-65XD AB, ADP-65YD BA, ADP-65YH BA, ADP-90DE BA, ADP-90DE BC, ADP-90FE DA, ADP-90LD DD, ADP-90LD FA, ADP-90LE BA, ADP-90WH KA, ADP-90WH KB, ADP-120CR AA, ADP120MH TA, ADP-120MH TE, ADP-120TH BA, ADP-120VH BB, ADP-120WH BA, ADP-120WH BB, ADP-180MB DB, ADP-180MB DD, ADP-180MB KA, ADP-180MB KD, ADP-180TB BA, ADP-180TB HA, ADP-240AB DB, ADP-240CB BA, ADP240CB BB, ADP-240EB BA, ADP-240EB BD, ADP-240GB BA.

108

About the
ESG Report

5.7 E
nvironmental
management

A Word from
the Management

Overview

Sustainable
Management

5.7 Environmental Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

5.7.3 Environmental Profit and Loss
Delta recognizes the importance of environmental capital and we have continued to conduct
environmental profit and loss (EP&L) assessment to analyze and to further monetize the5.7.1 Compliance with Environmental Protection
Regulations

environmental impact of Delta's production activities. The Impact pathway was adopted forthe impact value assessment of Delta's 4 main types of environmental capital, which are:greenhouse gases, air pollution, water consumption, and waste incineration.

Delta regards regulatory compliance as its most basic requirement. In 2020, no material
environmental law was breached at Delta. The main plants of Delta are all located at

Environmental Profit and Loss in the Past 3 Years*2

industrial parks, or science parks, or local industrial development zones, and we takefurther actions to minimize the impact on the local ecosystem and environment of our daily

22.5

operations. We also ensure that we cause no significant negative effects or impact on

18.9

15.4

biodiversity.

5.7.2 Environmental Protection Expenditures

2018

2019

2020

Unit:MUSD

5.7.4 Air Pollution Prevention and Management
36.05%

Input cost for energy saving
Input cost for water conservation

Total

58.18%

10,470,630
Expenditure (USD)

Input cost for waste reduction

All of Delta's plants have obtained emission permits in compliance with local environmental
regulations and have used best available treatment technologies for each pollutant
type to ensure that environmental loads around the plants are minimized. Moreover,gas monitoring is regularly scheduled at discharge outfalls of the plants. Currently, air
pollutants generated by Delta include Volatile Organic Compounds (VOCs), Nitrogen

Others*1

3.16%
2.61%

Oxides (NOx), Sulfur Oxides (Sox), and particulate matter (PM).
The total VOCs in 2020 were calculated based on data from monitoring reports andoperation time. The total emission amount declared of VOCs in main production plants
was 135.9 metric tons. The VOCs mainly came from escaped asphalt (filled in electronicballast) during the heating process, and volatile organic solvents (such as fluxes and*1 Including waste, air pollution and waste (sewage) water treatment fees, environmental testing fees,and management system verification costs.
*2 In 2019, the air pollution concentration data calculated from the air pollution inspection report wasincorporated into the statistical data, while the data was also adjusted.

isopropyl alcohol) and others. Nitrogen oxides and sulfur oxides came from testing or
the emergency use of generators at plants, or from hot water furnaces in dormitories andkitchens, and both were in minute quantities.
109

About the
ESG Report

6

A Word from
the Management

Overview

Employee Relations andSocial Participation
6.1 Key Performance Indicators
6.2 Talent Attraction
6.3 Talent Learning Development
6.4 Human Rights Protection
6.5 LOHAS Workplace
6.6 Social Engagement
6.7 Occupational Safety and Health110

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.1 Key Performance Indicators

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

6.1 Key Performance Indicators

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Main Endeavors■ Global Talent Attraction: Formulated

Global Employees

Ratio of Female Managers

Global Turnover Rate

different strategies for characteristics ofdifferent talents and their job-seeking

83,804

32.8%

27.6%

intentions. In addition to promoting
campus talent development plans for thetalent market in Taiwan and setting up
joint R&D centers with renowned domestic

Peopleuniversities, Delta also integrated
resources at home and abroad to nurture
future talents.

Global Average Training Hours
per Person

Social Engagement
Expenditures

Number of Volunteers■ Talent Cultivation and Retention:

27.2

9.07

236

Hours*1

MUSD

PeopleOffered diversified training courses
for improving employee professional
knowledge and skills required for the
future. Launched employees’ long-term
incentive measures to enhancetalentretention.

Cumulative DeltaMOOCx
e-Learning Video Views*2

Recordable Occupational Injury
and Disease Rate*3

Energy Saving Practices atDonated Green Buildings■ Making a Social Impact: Popularized
green building and transportation,>1,00010,000 times

0.96

1.66
million kWhpromoted science, energy educationand climate action, implemented active
talent cultivation, and developed theDeltaMOOCx online learning platform
centered on technical and vocational
education.

*1 Global average training hours per person of the year = Total learning hours of individuals employed by Delta globally in the year / total
number of individuals employed by Delta globally in the year
*2 Cumulative from 2015.
*3 Recordable occupational hazard rate = (recordable number of occupational injuries + recordable number of occupational diseases) / total
work hours * 1,000,000.

111

6.1 Key Performance Indicators

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Aligning with UN Sustainable Development Goals

No Poverty

Decent Work and Economic Growth• Participated in the Hope of Pearl Program to provide talented students in
China with education opportunities.
• Supported the Northern Thailand Project, which offers underprivileged people
learning opportunities to increase their incomes.

• Established the ISO 45001 Management System for all major plants acrossthe globe to implement preventive safety and health management• Implemented occupational safety & health management in practice to ensure
the safety of the workplace• Provided physical and mental consultation and promoted physical andmental well-being of employees• Promoted energy and climate education to increase national climate
awareness• Made donations to build the Delta Sunshine General Lecture Hall for DazhaiHigh School. We fused modern education ideals with low-carbon building
technologies to create a new form of campus space and use experience andeducation to spread low-carbon ideals.

Quality Education

Life Below Water• Developed the DeltaMOOCx Platform to promote fundamental scienceeducation.
• Used the Low Carbon Life Blog, energy school, and energy volunteers topromote sustainable development and life-long learning• Provided a high-quality work environment and competitive salary andbenefits to improve employer branding and attract and retain key talents.

• Analyzed international climate and ocean reports and used the "Water withLife in Taiwan" environmental protection documentary to promote ecologicaleducation for water regions and protect biodiversity.

Good Health and Well-Being

Gender Equality• Promoted gender equality measures to prevent sexual violence.
• Participated in related women's programs of the International Labour
Organization to help female employees acquire skills for responding to future
work in Industry 4.0.

Affordable and Clean Energy• Sponsored the Delta Cup International Solar Building Design Competition
since 2006 to encourage young designers to incorporate renewable energy
in their designs.

112

Climate Action

Peace, Justice and Strong Institutions• Implemented human rights management practices to prohibit forced andchild labor

Partnerships for the Goals• Participated annually in the UN Framework Convention on Climate Change
Conference of Parties (COP) to promote sustainability initiatives andinfluence government energy policies.

6.2 Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.2 Talent Attraction

Strategic Direction

Commitments■ Promote talent solutions for theCreate a high-quality work environment

post-pandemic era and integrate

and enhance the employer brand.

Key Initiatives for
Alignment with SDGs

KPI
Offer Letter Acceptance Rate *resources of the industry,
government, and academia tocreate recruitment activities that
integrate virtual and real channels
to attract talents from across theworld.
■ Use the motto "Green Future.
Endless Possibilities." as the axis
for employer branding. Provide a■ 2020 Target
76%■ 2020 Performance
81.2%

Achieved■ 2021 Target
77%

Use digital tools to facilitate industrial
and academic collaboration in the postpandemic era to help students connect
to the workplace seamlessly.

■ 2022 Target
78%

high-quality work environment andcompetitive salary and benefits to
attract and retain key talents.
Protect equal employment opportunities
by launching diversified recruitment
channels throughout the world andenhance talent retention by launching
the long-term incentive measures.

* Offer letter acceptance rate = (number of people who accepted offers for Delta’s global vacancies of management and professional technicalpositions) / (number of people of issued offers).

113

About the
ESG Report

6.2 Talent Attraction

A Word from
the Management

Sustainable
Management

Overview

6.2.1 Diversity and Inclusiveness Hiring

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

was followed by an increase in the number of employees in Taiwan of 782 persons or 7.3%
compared to 2019.

In the post-pandemic era, Delta uses digital recruiting tools and adopt a flexible
recruitment strategy to transform the physical recruiting activities into an integrated

Due to factors including the nature of the technology industry and the employment market,

talent acquisition procedure conducted with both virtual and real channels. We provide

most of Delta's management level and technical personnel are males. Nevertheless, thea diverse, tolerant, inclusive and friendly workplace, offer competitive salaries, andmale to female ratio is relatively balanced in our overall global operations. Under this goal,

learning programs designed for employee development. We also conduct the Employee

males account for 53.2% of all employees, and females 46.8%. The percentage of female

Engagement Survey to increase our employee retention rate and develop closer employee

employees increased by 1.9%. At the end of the year, a total of 946 employees withrelations. Delta hires local employees in global plants and operation sites and encourage

disabilities were employed, and a total of 2,403 employees from ethnic minority groups*

minority groups to make contributions with their specialities.

were employed.

As of year-end 2020, Delta has 83,804 employees worldwide, including 26,699*Definition of ethnic minority groups:

professional, technical and managerial personnel, 57,105 operators (including production

1. Taiwan: Indigenous peoples of Taiwan is 92 peoples.

line assistants), and 554 informal employees (i.e. dispatched manpower which is not

2. Mainland China: Non-Han ethnic Chinese is 1,935 peoples.

included in the following manpower statistics). Due to the expansion of the production

3. Americas: Native Hawaiian or other Pacific Islander (non-Latino), American Indian orlines in the Thailand Plant, the number of employees in Southeast Asia increased by 2,860

Alaska Native (non-Latino), Asian (non-Latino), Latino, Black or African American (non-persons or 20.7% compared to 2019. The increase was the highest in the Group, which

Latino) ethnicities, total are 376 peoples.

Number of Local Employees
3.0%

1.0%

Employees in Non-Management Roles by GenderTaiwan / 11,508

Male

China / 52,025
13.7%

Total
83,804

FemaleFemale Managers / 2,072

25,19032.8%

19,386

Europe / 2,526
Americas / 800

Male Managers / 4,253

Total 83,804

31,915Southeast Asia / 16,661

19.9%
0.3%

Northeast Asia / 284

Management Positions by Gender *

Total
6,325

38.1%
30.1%
23.1%

7,313
8.7%

62.1%
Operators (Including
Production Line Assistants) *2

67.2%

Professional and Technical
Personnel *3* Management positions
are defined as those
responsible for leadershipand the management ofsubordinates.

*1 The number of employees in Taiwan includes the formal employees of Delta (Taiwan) and subsidiary Cyntec (Taiwan).
*2 Operators (including production line assistants) are defined as: Employees directly related to production activities such as system assembly personnel, quality management personnel, warehousemanagement personnel, production technicians, and others.
*3 Definition of professional and technical personnel: Adminitrators or engineers indirectly related to production activities such as quality management, materials management, R&D engineers, sales, marketing,human resources specialists, and others.

114

About the
ESG Report

6.2 Talent Attraction

A Word from
the Management

Overview

Sustainable
Management

Age Distribution

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Distribution of Informal Employees
3.7%<30 years old / 32,234

RegionMale

FemaleSubtotal

Age 30-49 / 48,447

Taiwan57

35

92

Northeast Asia

0

3

3

Southeast Asia

406

30

436

Europe9110Americas

12

1

13

Total

484

70

554

AmericasTotal≥ 50 years old / 3,123

57.8%

38.5%

Total
83,804

Number of New Hire and New Hire Rate: All Employees by Region, Gender, and Age Group *1 *2
RegionGenderFemaleMale

TaiwanChina

Northeast Asia

Southeast Asia

Europe, Africa,and Middle East

Age Group

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Below 30

471

4.3%

7,989

15.3%

5

1.7%

3,462

22.7%

24

0.9%

7

0.8%

11,95814.6%

30 (inclusive)
to 49

531

4.8%

4,889

9.4%

3

1.0%

810

5.3%

18

0.7%

12

1.4%

6,263

7.6%

Higher than
50 (inclusive)

14

0.1%

1

<0.05%

10.3%

1<0.05%

1<0.05%

0

0.0%

18

<0.05%

Below 30

469

4.2%

18,377

35.3%

3

1.0%

260

1.7%

34

1.3%

20

2.4%

19,16323.3%

30 (inclusive)
to 49

505

4.5%

7,041

13.5%

11

3.7%

142

0.9%

58

2.2%

9

1.1%

7,766

9.5%

Higher than
50 (inclusive)

15

0.1%

4

<0.05%

31.0%

3<0.05%

18

0.7%

3

0.4%

46

0.1%

2,005

18.0%

38,301

73.5%

26

8.7%

4,678

30.7%

153

5.9%

51

6.2%

45,214

55.0%

Total

115

About the
ESG Report

6.2 Talent Attraction

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Number of Resigned Employees and Turnover Rate: All Employees by Region, Gender, and Age Group *3
RegionGenderFemaleMale

TaiwanChina

Northeast Asia

Southeast Asia

Europe, Africa,and Middle East

Americas

Total

Age Group

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Below 30

148

1.3%

4,520

8.7%

0

0.0%

301

2.0%

5

0.2%

12

1.4%

4,986

6.1%

30 (inclusive) to 49

271

2.4%

2,843

5.5%

6

2.0%

212

1.4%

10

0.4%

10

1.2%

3,352

4.1%

Higher than 50(inclusive)

17

0.2%

15

<0.05%

0

0.0%

9

0.1%

8

0.3%

0

0.0%

49

0.1%

Below 30

221

2.0%

9,621

18.5%

0

0.0%

107

0.7%

9

0.3%

18

2.2%

9,976

12.1%

30 (inclusive) to 49

412

3.7%

3,697

7.1%

6

2.0%

91

0.6%

21

0.8%

1

0.1%

4,228

5.1%

Higher than 50(inclusive)

22

0.2%

10

<0.05%

41.3%

5<0.05%

19

0.7%

3

0.4%

63

0.1%

1,091

9.8%

20,706

39.8%

16

5.3%

725

4.8%

72

2.7%

44

5.3%

22,654

27.6%

Total

Number of Resigned Employees and Turnover Rate: Operators (including production line assistants) by Region, Gender, and Age Group *3
RegionGenderFemaleMale116

Age Group

Taiwan
Head
Count

Rate

China

Northeast Asia

Southeast Asia

Europe, Africa,and Middle
East

Americas

Total

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Below 30

117

4.3%

4,411

11.0%

0

0.0%

271

2.4%

2

0.3%

0

0.0%

4,801

8.7%

30 (inclusive) to 49

160

5.9%

2,720

6.8%

0

0.0%

194

1.7%

4

0.6%

0

0.0%

3,078

5.6%

Higher than 50(inclusive)

8

0.3%

13

<0.05%

00.0%

4<0.05%

5

0.8%

0

0.0%

30

0.1%

Below 30

55

2.0%

9,163

22.8%

0

0.0%

44

0.4%

6

0.9%

0

0.0%

9,268

16.8%

30 (inclusive) to 49

70

2.6%

3,331

8.3%

0

0.0%

16

0.1%

1

0.2%

1

1.2%

3,419

6.2%

Higher than 50(inclusive)

0

0.0%

7

<0.05%

00.0%

1<0.05%

3

0.5%

2

2.4%

13

<0.05%

Total

410

15.1%

19,645

48.9%

0

0.0%

530

4.6%

21

3.3%

3

3.6%

20,60937.4%

About the
ESG Report

6.2 Talent Attraction

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Number of Resigned Employees and Turnover Rate: Professional Technical Personnel and Management Personnel by Region, Gender, andAge Group *3
RegionGenderFemaleMale

TaiwanChina

Northeast Asia

Southeast Asia

Europe, Africa,and Middle East

Americas

Total

Age Group

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Head
Count

Rate

Below 30

31

0.4%

109

0.9%

0

0.0%

30

0.8%

3

0.2%

12

1.6%

185

0.7%

30 (inclusive) to 49

111

1.3%

123

1.0%

6

2.0%

18

0.5%

6

0.3%

10

1.3%

274

1.0%

Higher than 50(inclusive)

9

0.1%

2

<0.05%

0

0.0%

5

0.1%

3

0.2%

0

0.0%

19

0.1%

Below 30

166

2.0%

458

3.8%

0

0.0%

63

1.7%

3

0.2%

18

2.4%

708

2.6%

30 (inclusive) to 49

342

4.1%

366

3.1%

6

2.0%

75

2.0%

20

1.0%

0

0.0%

809

3.0%

Higher than 50(inclusive)

22

0.3%

3

<0.05%

4

1.3%

4

0.1%

16

0.8%

1

0.1%

50

0.2%

Total

681

8.2%

1,061

8.8%

16

5.3%

195

5.2%

51

2.7%

41

5.4%

2,045

7.5%

*1 The calculations of global new hire and turnover do not include Involuntary turnover': employees leaving because of retirement, dismissal by law, termination of contract, or termination of internship, Operators(including production line assistants) who have not stayed with the Company for more than 3 months since their date of hire, or professional, technical and management personnel who have not stayed with
the Company for more than 1 month since their date of hire.
*2 New Hire Rate = new hires / [(number of employees at the beginning of the period + number of employees at the end of the period) / 2].
*3 Turnover = resignations / [(number of employees at the beginning of the period + number of employees at the end of the period) / 2].

117

6.2 Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.2.2 Global Synergy for Attracting International Talents
We have promoted talent solutions for the post-pandemic era and integrated resources• Plants in Taiwan and India have respectively established the Master of Industry Programof industry, government, and academia to create recruitment activities that bring together

and University Reserve Cadre Class that recruited 60 reserved employees to ensure thevirtual and real channels and provide a high-quality work environment, competitive salaryadvance talent acquisition in our critical operation sites.

and benefits. This has increased the global offer letter acceptance rate by 5.6% comparedto the previous year. *Online and Offline Simulated Workplace Experience

Agile Recruitqing Strategies That Integrated Virtual and Real
Channels

Delta continues to use digital technologies to simulate the workplace environment and• We have focused on using existing advantages to enhance employer branding,• Promotional videos for a diverse range of jobs:

enhance employer branding:developed the global recruiting axis of "Green Future. Endless Possibilities.", promoted

We have created media materials based on job introductions and produced videos

global online activities, and used social media to expand reach. As a result, the number

in different formats for key positions such as electronic, software, hardware, andof visitors on fan pages increased from the previous year (34% increase on LinkedIn;

mechanical engineers, etc. Examples such as "Join Delta ME to create a better me"

27% increase on Facebook).

and "Delta Big Brother" videos have accumulated more than 15,000 views. They havecreated more dialogue and connections to help students or canditdates learn about
Delta's related information more rapidly.
• Software and hardware design camp:
We adopt the concept of solution providing as a core design to help attendees of thecamp understand the importance of interdisciplinary skills development and how to
add value to their own specialities. We organized a software and hardware engineering
camp in Taiwan for 40 students.
• Virtual and real dual-track internship program:We expanded the "Academic Dream Come True" project of Ministry of Education andworked with Taiwan National Chiao Tung University and Education Division, Taipei
Representative Office in the EU and Belgium to continue cooperation and promote
overseas internships, resulting in a total of 133 global interns. In response to the

Axis of Delta's Global Recruiting Activities*Refer to the offer letter acceptance rate in previous years in 7.3 Appendix.

118

6.2 Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

epidemic’s impact, we use digital tools to create work platforms that integrate virtualand real channels so that interns can still experience their internship. Plants in Taiwan

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Integrating Industry, Government, and Academic Resources
and Creating Joint R&D Centers with Top Universities

and Thailand continue to organize in-person internships and created the first "InternshipAchievement Auction Contest" to help students demonstrate the professional knowledge

Delta commenced a 3-year industrial and academic collaboration program with top Taiwan

and creative ideas they learned during the internship. The overall satisfaction rate

universities and government institutions in 2020 to expand innovation and increaseof interns in Taiwan increased by 8.7% compared to the previous year. The interns'

R&D capacity. We develop applications for electric vehicles, energy, and information

willingness to join Delta was rated 4.6 points (out of 5).

and communication technologies and invited 22 professors and 50 graduate students totake part in 25 research programs. We invested at least 2,669,250 USD and used the• Focus on brand activities:

subsidies of the Air Center Project of the Ministry of Science and Technology to create

We use Facebook, LinkedIn, WeChat, TikTok, and YouTube for external communication

an environment similar to that of the industry on campus staffed by Delta personnel. The

and also use electronic newsletters for internal marketing to create a shared internal

environment ensures that industrial and academic developments are on the same trackand external experience. By using themes such as job transfers, graduations, bonuses,

and helps students grasp key competitiveness for the future.

and work and life balance with internal recommendation mechanisms, we increased
the acceptance rate of candidates of indirect employees hired in Taiwan site to 12.2%,

We also provided R&D scholarships, overseas internship opportunities, and favorable

which was approximately 3% higher compared to the previous year. The percentage ofsalary offers for talents to attract students with high potential to join the R&D Center. We

production line operators hired in China region rose from 35.1% in 2019 to 41.6%.

have created Master of Industry Programs with different schools to train students withindustrial and academic projects of the R&D Center.

Overview of Joint R&D Centers Established with Top Universities:
Industry-academia
Program
Joint R&D Center

Partner Institution• National Taiwan University• National Tsing Hua University• National Cheng Kung University• National Taiwan University of
Science and Technology• National Taipei University ofTechnology

Partner Department

Target Candidates

Resources Committed

Partnership Overview• Department of ElectricalEngineering• Undergraduate
students• Department of Computer
Science and Information
Engineering• Graduate students• We invest 889,750 USD
into R&D partnerships
each year (2020-2023)• We conduct joint researchon related R&D topics
with professors andstudents. We also recruit
students of the Masterof Industry Program andprovide them with R&D
scholarships.

• Department of MechanicalEngineering• Students of Masterof Industry Program• We have invested
10,677 USD for eachof the 17 students of
the Master of Industry
Program1196.2 Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

We received multiple awards across the world in 2020 for the results of our continuous

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Precision Recruitment 2.0 with Smart and Upgraded Processes

investments in employer branding:
Delta developed its own smart recruitment system to rapidly screen large quantities of• Rated among the Top 50 "Most Attractive Employers - Engineering & IT" in Taiwan by
the renowned international employer brand research organization "Universum".
• Received the Silver Award in the "Asia Recruitment Award—Best International

resumes and reduce the time required for recruitment. We increased resume screening
precision this year and expanded it to other job categories and regions for use. The resultsof this stage are as follows:

Recruitment Strategy" presented by "Human Resources Online", the authoritative
human resources institution in Asia.
• Received the "Best Companies to Work for in Asia Award" from renowned humanresources magazine "HR Asia".
• Received the "Top Human Resources Management Award" and "Model Employer in
China Award" presented by the Chinese human resources service provider "51 Job".

• Increased recruiting efficiency: With process integration, form optimization, process
streamlining, we have completed improvements for smart screening for main job
categories, which increased the screening efficiency by 26.4% compared to the previous
year. The average number of days required for completing recruiting procedures was
reduced by 32% compared to the previous year.

• Received the "HR Tech INNO Award" and "Candidate Experience Award - Gold Award"• System expansion applications: The number of well-trained screening modules wasfrom the Chinese human resources technology and media platform "HRTechChina".

expanded from 1 job category to 10 job categories and the application was expanded to• Selected as a constituent of the "Taiwan Employment Creation 99 Index".

plants in China.

• Selected for the "Top 100 Most Desirable Companies Among the Young Generation"organized by "Cheers" Magazine for nine consecutive years and we maintained our 13thplace rank from 2019.

6.2.3 Competitive Employee Compensation and
Benefits• Selected as one of the Top 10 "Most Desirable Companies Among Graduates" organizedby the "Yes123 Job Bank".

Overall Remuneration Superior to the Average in the Tech
Industry
Delta offers competitive compensation structures to recruit and retain talents and motivate
emoployees. We pay particular attention to designing the connection and reasonablenessbetween the Company's operation performance and employee salaries. Besides fixedmonthly wages / salaries, employees in Taiwan are eligible for 3 major bonuses including
year-end bonuses, performance-based bonuses, and profit sharing. To provide more
immediate incentives with the distribution of profit sharning, the Company has adjusted
the method for distributing "cash remuneration" and "cash bonus" to employees in 2017.
The "cash bonus" is distributed in April of the following year and the "cash remuneration"
derived from the Company's net profit after tax is distributed in August.

Delta received the Best Companies to Work for in Asia Award from HR Asia.

120

6.2 Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

The Company has continuously made investments into new industries and actively

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

Ratio of Highest Compensation to the Median Compensation *1-2

recruited R&D and engineering talents in recent years. However, the overall appropriation
ratio remains no less than in previous years. The amount of the bonus is determinedby the performance of each business unit and employee. Those with outstanding
performance are eligible for higher bonuses.

40.2
Taiwan(Headquarters)
30.5
China

Delta uses the annual salary survey to measure the salary rates and economic indicators

24
Thailandacross the world to implement suitable adjustments. Delta's global salary adjustment

17.8
Brazilbudget this year was 3-5%, which was the same as the previous year and slightly higher
than market rates. In addition, Delta focused on R&D, engineering, high-performance,

9.2
India

and key development talents whose salaries increased by up to 8-10%. We implemented
strategic adjustments of the proportion of fixed-salary in the annual salary structure for

2.5
2.0
Japan Singapore

the aforementioned recipients to strengthen our competitiveness in talent retention and

5.3
USA

6.9
5.7 Slovakia
Netherlands

2.5
Germany

recruitment.
Asia

Delta's Board of Directors established a Remuneration Committee and Charter in

Americas

EMEA

Ratio of Highest Compensation to the Median Compensationaccordance with the “Regulations Governing the Appointment and Exercise of Powers
by the Remuneration Committee of a Company Whose Stock is Listed on the Taiwan
Stock Exchange or the Taipei Exchange.” It appointed the Independent Director Mr. TaiSheng Chao to serve as the convener and chair of the Committee. The Charter states

Comparisons of Salaries of Operators (including those for
production line collaboration) and Local Minimum Wages in Major
Production Sites Across the World *3

that the duty of the Committee is to establish and regularly review the policies, systems,
standards and structures of the performance evaluation and remuneration of directors

RegionMale

FemaleTaiwan1.05

1.03

China*4

1.08

1.13

Thailand

1.14

1.36

and managers in order to periodically assess and determine their remuneration packages.
The Committee must exercise the care of a prudent manager to fulfill the duties, and offer
recommendations for discussion by the Board of Directors.

Operators (including production line assistants)

1 The ratio of highest compensation to the median compensation in each country (region) is the ratio of highest compensation to the median compensation in each country (region).
*2 The scope of the statistics does not include employees on reduced hours and Cyntec employees. Statistics for China include all plants.
*3 Operators' salary (including those for production line collaboration) is defined as "the average fixed monthly salary of Delta's operators (including those for production line collaboration) in the region".
*4 The basic salary in China varies according to the regulations of each city and province, so the average amounts of the basic salaries of the groups of male and female operators are used as the numbers forcalculation.

121

About the
ESG Report

6.2 Talent Attraction

A Word from
the Management

Overview

Sustainable
Management

Average Annual Salary (Male / Female Ratio) in Major Production
Sites Across the World *1
RegionProfessional & Technical(Including Management)
Personnel

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Regular Assessment of Senior Management Team Performance
The salary structure of executives is highly correlated to the Company's performance. The

Operators (Including
Production Line Assistants)

Male

FemaleMale

FemaleTaiwan

1

0.93

1

1.27

China

1

0.95

1

0.94

Thailand

1

0.94

1

1.10

Total Payroll of Full-time Non-managerial Employees at the Plants in
Taiwan
Item

2019

2020

Number of Full-time Non-managerial Employees *2,3

8,768 people

9,749 people

Item

2019

2020

Total Payroll of Full-time Non-managerial Employees

408,573,809
USD

497,109,152
USD

Average Payroll of Full-time Non-managerial
Employees

46,600USD

50,991USDMedian of total Payroll of Full-time Non-managerial
Employees

38,471
USD

43,233
USD

Company determines the executives' salary proposals in accordance with the Company's
performance indicators and submits the proposals to the Remuneration Committee forreview and to the Board of Directors for resolution.

Senior Management Performance Evaluation Considerations
Evaluation Consideration
WeightDescription

Company performanceindicator (75%)

Annual ROE, annual net interest rate, and annual
revenue achievement rate

Annual key strategic
target (25%)

Original brand manufacturer (OBM) revenue ratio,
key strategic business groups’ operation target
achievement rate, and increase in productivity percapitaDelta values and key
competencies (feedback
for certain parts areprovided through360-degree perspectives)• Integrity, innovation-driven, customer satisfaction,
creation of synergy (including diversity andcollaboration), and pursuit of quality• Entrepreneurial spirit, blueprint planning, leadershipreforms, and talent development• Legal compliance and fulfillment of ESG*1 The employees' annual salaries include the basic monthly salary, fixed cash remuneration, bonuses, and cash profit sharing.
*2 The disclosure is made in accordance with the Operating Procedures for the Preparation and Filing of Corporate Social Responsibility Reports by Listed Companies published by the Taiwan Stock Exchange,
and the information has been audited by PwC Taiwan.
*3 Full-time non-managerial employees: All employees, excluding directors who serve as managers or employees concurrently, employees at overseas branches, and part-time employees.

122About the
ESG Report

6.2 Talent Attraction

A Word from
the Management

Remuneration of President and Vice President

17.80%

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

CEO's Individual Remuneration

0.29%

Job Title/ Name

Salary (A)Pension (B)CEO / Ping Cheng

303,245 USD

5,203 USD

Bonus and Special
Employee
Allowance (C)Compensation (D)1,549 USD

1,522,234 USD

Total
Remuneration
A+B+C+D
1,832,231 USD

1.15%

Salary (A)Benefit Plans Superior to Legal Requirements

Pension (B)80.75%

Bonuses and Allowances,
etc. (C)
Employee Compensation (D)Delta provides a diverse and flexible benefits system for employees to achieve balance between work and life, focus on
their work, and stay on the job for long-term development. The measures implemented in each operation site that aresuperior to regulations are specified in the table below.

Measures Superior to Regulations
RegionPlant

Item
Travel Leave

Employees enjoy an additional 7 days of leave arranged by the Company. Parts of the 7 days ofleave are paid holidays for which the Company provides travel subsidies.

Paid Sick Leave / Personal Leave

Those above specified job grade holders enjoy 30 days of paid sick leave and 14 days of paid
personal leave.

Health Examinations
Taiwan(Headquarters)

Practices Superior to Legal Requirements

Employees aged 50 and older receive 1 general health examination once every year and other
employees receive 1 health examination every 2 years paid by the Company.
Those above specified job grade holders enjoy high-level health examinations.

TaiwanGroup Insurance

Employees and their spouses and children are provided with comprehensive group insurance paid by
the Company.

Business Travel Insurance

Employees enjoy business travel insurance for business trips including travel insurance and travelinconvenience insurance.

Other Benefits

The Company provides birthday gift money, marriage gift money, childbirth subsidies, and funeralsubsidies.
123About the
ESG Report

6.2 Talent Attraction

RegionA Word from
the Management

Plant

R&D and Sales
Operations

China

Overview

Item

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Practices Superior to Legal Requirements

Commercial Insurance

The Company provides comprehensive commercial insurance coverage.

Reimbursement of Medical
Expenses

Employees and their children may apply for reimbursement of certain medical expenses for items
that are not reimbursed by medical insurance.

Employee Health Examinations

Regular health examinations are paid for by the Company every 2 years.

Other Benefits

The Company provides travel subsidies, marriage and childbirth gift money, funeral subsidies, andhospitalization subsidies.

Overtime Pay

OPs on the production line receive more favorable overtime pay calculation than those specified in
the Labor Standards Act.

Family Reunion Leave

Employees assigned overseas have 10 days of paid family reunion leave each year.

Paid Annual Leave

Employees who have worked at Delta for more than 1 year have 10 days of paid annual leave eachyear.

Manufacturing Plants

Appendix

Paid Sick Leave / Personal Leave

Those above specified job grade holders enjoy 14 days of paid sick leave and 14 days of paid
personal leave.

Male Employee Paternity Leave

Male employees receive childbirth subsidies under social insurance and salary for paternity leave.

Encouraging Long-term Retention through Long-term Incentive Measures — Delta encourages employees to stay with theCompany• The Company established long-term incentives to retain key talents, encourage employees, and increase employee morale. We also calculate the number of shares allocated to
employees based on the Company's business performance, employee performance, and the stock prices of the current year. We then convert the bonus to cash based on the stock
price in the year of distribution.
• We plan diverse long-term talent retention measures and create an environment for long-term development. We also identify and track young recruits with potential through our talentmanagement mechanism and pay attention to their development potential within our businesses. Delta encourages employee participation through the annual Delta Innovation Awards
to generate an innovative spirit within the Company.
124

6.2 Talent Attraction

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix• In response to the continuous expansion of the organization across the globe, the Company implements the following
global manpower development and talent assignment measures:
1. We review the allowances and benefits for employees assigned overseas to ensure that they meet market rates. We
provide overseas assignment subsidies and subsidies for transportation and accommodations as well as education
subsidies for their children in certain regions and countries to increase employees' willingness to take overseas
assignments, facilitate the movement of talents, and help employees assigned overseas work without worries.
2. We provide employees and their family members with comprehensive group insurance and 24-hour international
medical assistance services.
3. We increased hardship allowances for areas with lower living standards. We also increased the allowances for
assigning employees from plants in China to India, and increased the allowances for assigning mid-level managers
from Taiwan to China. We also increased insurance coverage for employees assigned to plants in Thailand.
4. As risks of the COVID-19 epidemic rose, we increased the allowances for employees assigned to plants in India tosupport employees' relocation across borders despite health risks.

Stable Pension Provision Plan
Plants in Taiwan process retirement applications and pension provision standards in accordance with the Labor
Standard Act and Labor Pension Act. The Company appoints an actuary to submit an actuarial report on labor pension
preparatory fund each year and appropriates pensions under the old system to the Trust Division of the Bank of Taiwan.
After the launch of the new labor pension system, we allocate 6% of the employees' monthly salary to their personal
pension account under the new system. Employees may apply for retirement once they meet legal retirement conditions.
Pensions for overseas subsidiaries, branches, and affiliates use the defined benefit plan. Social security funds including
pension and healthcare are filed each month in accordance with the regulations of local governments.

1256.3 Talent Learning
Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.3 Talent Learning Development

Strategic Direction■ Continue to identify and develop
key talents and use diverse talent

KPI

Key Initiatives for Alignment with SDGs

Average Training Hours per Person

development programs to facilitate
talent development and strengthen
the organization.
■ Improve the development of online
courses across the board andexpand them to direct and indirect
employees around the world so that
all employees have opportunities forlearning from anywhere at any time.

Commitments■ 2020 Target29■ 2020 Performance
27.2

Ensure the presence of a talent pool

Provide necessary and diversified

for succession and the Company's

learning resources to ensure thatstable operations.

employees have the capabilities andskills for completing their work.

■ 2021 Target29■ 2022 Target
29

Develop shared online resources for

Provide courses on the Code ofglobal operations.

Conduct of the Responsible Business
Alliance (RBA) and Delta to improve allStart with Taiwan by establishing aemployees' knowledge of sustainable

comprehensive system and setting

development.

benchmarks in the market. Work
with global partners to improve thecapabilities of talents.

1266.3 Talent Learning
Development

About theESG Report

A Word from
the Management

Delta responded to global cooperation and system

Sustainable
Management

Overview

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

Average Global Training Hours, Total Hours, and Total Expenses in 2020

integration trends by updating the "Education andTraining Hours by Employee Category

Training Management Regulations" to ensure consistentglobal operations while keeping practices suitable for

TaiwanChina

Northeast
Asia

Southeast
Asia

EMEA

AmericasMale

113,734

2,073,622

2,885

46,916

14,213

3,634

Female37,1991,351,879

850

106,065

7,897

902

Direct Labors (Including
production line
assistants)

16,152

2,923,442

0*1

94,525966

266

Indirect Labors(Professional technicaland management
personnel)

134,780

502,058

3,736

58,45621,145

4,270

Senior

3,279

1,348

20

979

117

231

Middle19,78956,750200

10,323927

849

Junior563

75,585

0

5,301

49

9

Non-management

127,301

3,291,818

3,515

136,377

21,016

3,447

≥ 50

8,897

9,394

562

7,030

3,347

593

30~49

108,979

1,699,010

2,810

102,088

16,0851,492<30

33,056

1,717,096

364

43,862

2,678

2,451

Regionlocal conditions. We use these measures to maximize
the benefits of collaboration between global learning
resources. The Company also established the "Lecturer

GenderManagement Regulations" to help the organization passdown knowledge and develop professional talents in all
sectors. We also use the course plans and requirements
to develop, evaluate, and select lecturers for achieving
learning objectives.

Employee
Type

Delta designs the most suitable learning programs for
specific groups and expands digital courses so thatlearning is not interrupted by time, geological, andepidemic issues. We continue to invest in key talent
succession planning, transformation and training of key

Managertalents, and development of key courses to create talentmobility which may be the most important factor for an
expanding enterprise. In-person courses worldwide
were reduced due to the impact of COVID-19. Whensome in-person courses were replaced by online
courses, the course hours were also reduced to ensureAgethe effectiveness of online learning. Thus, the average
training hours per person throughout the year decreased
accordingly.

Total Training Hours

3,759,795 Hours

Average Training Hours per Person

27.2 Hours*2

Total Training Expenses

1,359,379 USD*3*1 Delta has no direct labors in Northeast Asia.
*2 Global average training hours per person in 2020 = Total training hours in 2020 (3,759,795 hours) / total number of individuals employed by Delta in 2020 (138,438 persons).
*3 The main components of the training fee are the teacher's hourly fees, education material fees, and lecturers and employees' travel fee for training. The fee does not include the cost of time for training acrossthe globe. Total training expenses are calculated based on the foreign exchange rate of each currency against the USD on December 31, 2020.

1276.3 Talent Learning
Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Delta's Talent Development Structure

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

Key Talent Development Status in the Last 3 Years
Key Talent Development Speed Continues to Increase
2018

Seniormanagers

CEO Workshop
Strategy Workshop
Mentoring

2019

2020

77%
69%

72%

70%

Pipelinedevelopment

61%

Key Courses
on 3 Major Strategies

Middle managers

48%

Leadership Skills, Technical Skills,
Brand Promotion and Sales Skills
Key Talent
Cultivation

34%

38%

29%

Junior managers

Non-managerial Employees
Job Enlargement

Rotations

Promotions

Young Talents as Transformation Drivers

6.3.1 Pipeline Readiness and Transformation
Drivers

The brand power and solutions business are engines of growth for the Company.
This business model focuses on understanding the needs of end customers andContinuous Review of the Pipeline Talents Readinessbecoming the business consultants of the customers so that Delta stands out from thecompetition. To support the transformation strategy, we planned a 3-year development

Delta continues to pay close attention to the development of key talents. The management

project and selected dozens of young talents across the globe in 2019. We focused on

and senior executives formed the Leadership Development Committee (LDC) and"interdisciplinary skills" and "sales skills" and provided related development activities forconvene meetings once every 6 months for talent development plans and echelon

the solutions business. We launched the brand-new Shadowing / Coaching Program thisinventory from the business strategy and enterprise development perspectives to increase

year to help young talents step beyond their original disciplines and take part in solution

talent preparedness for key roles. In addition to the occupancy rate and succession

business projects they had never known before. We also assigned senior experts to

preparedness for key roles, the LDC mechanisms also promote horizontal talent shifts forprovide up-close and personal instructions so that we can provide training, experience,

gaining additional experience. We regularly review employees' overseas assignments,and endurance training to accelerate talent development and facilitate the Company's

expansion of duties, and rotations. The LDC model of the headquarters was successfullytransformation. Approximately 26% of the talents underwent rotations to the solution

communicated to Business Groups and regions who formed their own Talent Development

business team as of the end of the year.

Committee (TDC) to review their internal talent preparedness.
128

About the
ESG Report

6.3 Talent Learning
Development

A Word from
the Management

Overview

Sustainable
Management

Delta uses diverse training channels to enhance key strategic capabilities

Key training
programDiverse Training
Channels

External
training subsidy

DeltaMOOCx

targets in response to our transformation strategy including "leadership skills", "technicalskills", and "sales skills". We flexibly adjust training plans each year.

Employee Relations
and Social
Engagement

Appendix

Related Actions and Outcomes

Leadership
Skills• Provide mandatory courses for management competencies.
• Open at least 1 course for supervisor ranked manager and above
each year.

Technical
Skills• Specify the skills required for each position and hire internal experts
or professors from reputable institutions to lecture.
• Improve the skills of R&D personnel for key technical courses.
• Dongguan Plant responded to the needs for digital transformation
and automation development by adopting "organization integration","competence transformation", and "digital twin" strategies toaccelerate the transformation to a digital factory and help theCompany attain strategic goals. This year, we trained 1,344 talents
who specialize in production, mechanical engineering, quality control,and logistics. We also use integrated virtual and real channels
to expand learning channels so that employees can learn about
automation and advanced technologies in the industry and acquire
new digital skills faster.
• Wujiang Plant was recognized by the Suzhou Municipal Human
Resources and Social Security Bureau as a "Suzhou High-Skill
Talents Public Training Base" and "Professional Skill Accreditation
Pilot Program Enterprise". Trainee certificates for completing training
in plants have equal validity as official certificates. We certified 1,573
employees in 2020 which reduced the cost of certification by external
institutions of approximately 683,913 USD. We also establishedthe "professional skill" accreditation system and trained at least
470 computer programmers (PLC) and industrial robot system
maintenance personnel.

Sales
Skills• The contents of the basic courses include the analysis of sales
opportunities and sales persuasion skills. Advanced Courses focusedon planning and sales solutions, customer and channel management,
and negotiation skills.
• Due to the epidemic, we discarded the face-to-face training modelin China and used online live broadcast platforms such as Zoom,
Skype, and Tencent Meeting to provide 89 courses on products andtechnologies. We also rapidly launched the Delta "Cloud Academy"
online learning platform to provide sales courses to employees as wellas customers and channel partners. We have launched 435 e-courses
for 2,402 registered visitors. The total number of visits was 132,742
and the total number of visitors was 18,682. The average number ofvisits by mobile phone users per month was 8,092 visits; The average
number of visits by computer users per month was 18,457 visits

Project
assignment

Delta spares no effort for talent development and we have designed 3 key development

Environmental
Protection andEnergy Savings

Training
ProgramOnline learning
Delta Academy

6.3.2 Key Training Programs and Diverse Learning
Resources

Corporate
Governance

Key Training Programs in 2020

Knowledge
management
DMS platform

General knowledge
lectures

Work sitetraining

Communication
with Stakeholders

1296.3 Talent Learning
Development

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Delta won the "National Talent Development Award" for its comprehensive training system
and received the following honors in 2020:

Communication
with Stakeholders

Environmental
Protection andEnergy Savings

Corporate
Governance

Employee Relations
and Social
Engagement

Appendix

Growth of Digital Courses in the Global E_Learning Platform
Delta Academy• The Taiwan Corporate Sustainability Award - Most Prestigious Sustainability Awards Talent Development Award• Received the HR Distinction Awards for Greater China from HRoot for 2020 Excellencein Learning and Development in Greater China• Received the Model Employer in China Award from 51 Job• Certified by the Suzhou Municipal Human Resources and Social Security Bureau as a

General Courses

Managerial

New-hire Orientation

Professional

×
3.04

×
5.35

×
17.5

×
2.69

Suzhou Excellent Professional Skill Accreditation Pilot Program Enterprise in 2020
• Rated by the People's Government of Jiangsu Province as one of the Top 10
Craftsmanship Academies in Wujiang District in 2020
• Upgraded to Suzhou Municipal Craftsman Workshop by the Suzhou Industrial Park

Overall × 3.02

Human Resources Management Service Center• Upgraded to Suzhou Municipal Labor Craftsman Talent Innovation Workshop by the
Labor Union of Wujiang District, Suzhou and Labor Model Association of Wujiang

Delta Management System (DMS) continues to integrate important resources in theDistrict, Suzhou

Company such as Talents, Departments, Technology, and Products & Solutions. We use
knowledge analysis and support and decision-making tools to help employees quickly

E-Learning System and Knowledge Sharing Platform

obtain the necessary knowledge and effectively compile obvious and hidden knowledge
used by individuals in the project or department work process to facilitate knowledge

Delta continues to expand the digital learning model, and by creating the global e-learning

sharing and reuse. We also developed the App Center module to provide smart decision-

platform, Delta Academy, it allows different regions to share online learning resources andmaking assistance for applications in smart manufacturing and other specific fields.

help employees use mobile devices to learn at any time. Delta Academy helps employees

For example: We provide plants with convergence and intelligent search functions forlearn effectively and continuously even in the pandemic time. The digital courses for all

production lines to standardize, duplicate, and expand production lines. We support quality

fields progressed quickly and the quantity increased rapidly. We provided approximately

assurance employees in root cause analyses.

1,500 courses across the globe without repetitions, which was a 302% increase from theprevious year.

We have organized online seminars and knowledge management contests to enhanceknowledge management. The average number of monthly users increased by 61%
compared to 2019. The number of social groups increased to 1,696, an 84% increase fromthe previous year. We use knowledge management contests and compiled 40 department
and project application case studies encompassing R&D, manufacturing, marketing,and logistics to share valuable experience on how to achieve knowledge management
and help the Company's departments and projects that intend to promote or implement
knowledge management.

130

About the
ESG Report

6.3 Talent Learning
Development

A Word from
the Management

Overview

Sustainable
Management

6.3.3 Performance Feedback and Development
Our performance management is based on annual and quarterly evaluations of individual
performance indicators (IPI) and values and competencies (CPI), which provide

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.3.4 Employee Engagement Survey - Significant
improvement in Survey Scores, and Won
Best Company to Work For Award in Asia

continuous feedback to ensure that targets are met. Employees can use the system to

As Delta expands its business operations each year, the Company has paid more attention

initiate or provide work evaluation at any time to request approval and recommendations

to talent retention, attraction, and corporate culture, which ensures that the organizationfrom others through interactions. Supervisors can also implement comprehensive

can meet development needs. We continue to make adjustments based on the results ofevaluation and management of talents to promote a positive performance-based culture.

the employee engagement survey to increase organizational efficiency and use face-toface and online activities to communicate the Company's transformation strategy. We also

All performance records serve as an important reference for employees' subsequent

plan employees' competency development to strengthen positive actions.

training and career development. The Company arranges career development basedon the skills and preparedness of employees and strengthens capabilities for control

Delta aims to implement 1 employee engagement survey every 2 years. The scope ofof business operations which in turn improves overall performance of the organization.

this survey included all professional technical personnel and management personnel in

Delta uses comprehensive performance management to closely integrate the goals of

Taiwan, China, Americas, Europe, Northeast Asia, and Southeast Asia. 21,536 employees

the organization and individuals with talent development, and jointly pursue performance

responded in 2020 and the response rate was 83%, which was a significant increase of

improvements for the Company.

24% compared to 2018 which demonstrated the employees' support of the Company's
actions taken in response to the survey, and their willingness to participate in the Survey.

Performance Management Procedures for Delta Employees

The results of the employee engagement survey showed a 14% increase in the overall

Year-end Assessment

Q1
Assessment

Q2
Assessment

Q3
Assessment

December of theprevious year to Januaryof the current year

April

July

Octoberengagement score compared to the previous survey and the performance was significantly
better than high-tech industries. The reasons for the improvement are as follows:• 98% of Delta employees approve of the Company's core values, demonstrating that
Delta's continuous mission "to provide innovative, clean and energy-efficient solutions
for a better tomorrow" has garnered support in the Company to become an important

Performance evaluation

Review theperformance andjointly discuss future
development andimprovement plans

Setting performance
expectations

Performance follow-up

The supervisor
helps the employee
clarify main job
responsibilities andestablish performancestandards

The employee implements
self-management and thesupervisor helps the employee
resolve issues

driving force for continuous growth.
• Employees agree that the Company makes efficient and quick decisions, and that they
have achieved balance in work and life. It showed the results of the Company's pursuitof transparent, instantaneous, and open information disclosure, and its creation of ahealthy and happy workplace.
• Employees feel that the Company has a clear communications strategy and understandhow they can contribute to achieving the Company's goals. Delta operations in many
regions have begun organizing employee communication seminars in 2019 or used131

About the
ESG Report

6.3 Talent Learning
Development

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendixe-courses to invite senior officers to share their vision for the Company. The results were very effective.
• Delta has performed well in the retention of exceptional talents with a retention rate 23% higher than the average rate of tech companies. Compared to the results of the previous
survey, the results increased by 24%. The results show that Delta has made significant progress in talent recruitment and employer branding, and we have attracted outstanding talents
who can provide maximum support for the growth of the industry.
We will continue to implement annual improvement plans and design programs for related leadership competencies including innovation, inclusiveness, and cooperation. We seek toencourage the participation of global senior executives, help the Company's global management implement leadership transformation, and help regional operations implement related
improvements.
In addition, Delta administered the employee engagement survey on direct labors in plants in China. A total of 27,777 employees participated in the survey and the response rate was99%. More than 93% of employees provided positive feedback in employee engagement issues, which demonstrated the effectiveness of the Company's actions taken to improve work,
leisure, life, and the living environment, and the "Happy Factory and Prosperous Enterprise" plan for a LOHAS Workplace.

Engagement Survey Scores Over the Years*
91
83
75

75

2018

2019

64.3

29.3

2017

26.8

26.8

2018

2019

2020

Questionnaire Coverage Percentage

2017

2020

Engagement Score* The scores and coverage percentages for 2020 included operators at the plants in China. For the scores of individual groups, please refer to 7.3 Social Data "Engagement Survey Response".

1326.4 Human Rights Protection

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.4 Human Rights Protection

Key Initiatives for
Alignment with SDGs

Strategic Direction

Commitments

KPI■ Ensure that employees understand

Abide by the following Human Rights

their rights and the Company's

Guidelines established in accordance

Global Completion Rate of Humans
Rights Related Courses*

Human Rights Policy

with the Delta Human Rights andEmployment Policy:■ Responsible Business Alliance
Code of Conduct (RBA)■ Tripartite Declaration of Principles
concerning Multinational Enterprises
and Social Policy of the International
Labour Organization (ILO)■ Guidelines for Multinational■ 2020 Target85%■ 2020 Performance85%

Achieved■ 2021 Target
87%

Continue to use internal e-learning
platforms to provide training courses forenhancing human rights standards.

■ 2023 Target
92%

Enterprises (OECD)■ United Nations Universal
Declaration of Human Rights andGlobal Compact* Global completion rate of humans rights related courses = "number of trainees in human rights courses (RBA / unlawful infringement in theworkplace) in the current year" divided by the "total number of employees at the end of the year".

133

6.4 Human Rights Protection

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.4.1 Human Rights Commitment and Policy

6.4.2 Human Right Risk Identification and Mitigation

Delta is committed to abiding by international human rights conventions and local

In order to ensure that employees' rights andregulations for its global operations. We have established the Delta Human Rights andinterests are protected and its corporate social

Employment Policy to communicate Delta's commitment to global human rights andresponsibilities are fulfilled, the Company has

included all employees, subsidiaries, business partners, suppliers, and contractors into

established a risk assessment framework for due

the scope of the Policy.

diligence, and regularly implements risk assessments

Formulate human right policies

to identify, prevent, and mitigate impacts related to
The Policy is also adopted as basic standards for all employees in their work and businesshuman rights issues. The human rights due diligence

activities. We strictly abide by the regulations on whistleblowing and complaints andprocedures are as follows:

Identify parties concerned

unlawful infringement in the workplace. Delta also signed the Delta Modern Slavery and
Human Trafficking Statement according to Modern Slavery Act of the United Kingdom• Risk Assessment: Conduct self-inspection

and we are committed to promoting labor-management communication and human rights

a n d a u d i t o f co mp l i a n ce a t e a ch p l a n t a n dmanagement.

risk assessments for the human rights issues
identified each year, and implement and review

Specific achievements are as follows

Assess management risks

corresponding risk mitigation measures based on
the assessment results to achieve the purpose of• Delta employed 946 people with disabilities globally; among them, 73 were in Taiwan.
Delta worked with the Eden Social Welfare Foundation to create work spaces forvisually impaired employees and purchased relevant equipment for them.

risk management.
• Evaluation Method: Align due diligence standards
with local regulations, industry standards,• Participating in the "Video Screening and Inclusive Event to Promote Enterprises'

international standards, RBA regulations, andRecognition of Disabled Employers" organized by the Taipei City Foreign and Disabledcustomer requirements through self-assessment

Labor Office, the Company held a seminar on "To Walk with Light in an Infinite Life" toand third-party evaluation.

promote workplace equality for people with disabilities, which screened a documentary.

• Improvement Tracking: Review the implementation

At the seminar, speakers as well as the Company's disabled employees and theireffectiveness of management and mitigation

supervisors were invited to share their experience. Employees at the seminar were

measures, formulate an improvement plan, anddeeply moved by the positive energy of the disabled, and recognized and identified with

continue to track it.

the Company's efforts to develop a "diversified" and "inclusive" workplace.

134

Set out risk mitigation measures

Track improvement regularly6.4 Human Rights Protection

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

understanding of their own rights and the Company's human rights policies. The total

The assessment mechanism for labor practice is as follows

number of trainees worldwide was 59,401*2, and the training completion rate was 85.2%;
of which there were a total of 9,322 at the plants in Taiwan with a training completion• A total of 19 relevant internal self-assessments and 54 external audits were carried out

rate of 97.2%.

*1

at various sites around the world. The risk ratio of global sites in the audits of humanrights standards was approximately 2.7%, and various mitigation measures were taken

In terms of labor laws and regulations, the Company complies with various local labor laws

based on the risk assessments, and improvements have been made to deficiencies

and regulations and relevant regulations, and there have been no material violations ofidentified in the internal or external audits.

the law. One of the Company’s affiliated companies in Taiwan was imposed with a penalty• The internal self-assessments at plants in Taiwan and China was mainly divided intoof 712 USD for violating the laws and regulations regarding working hours: An employee's

3 parts: self-inspection of the plants, internal audits by the other site’s HR department,

overtime hours exceeded 46 hours in a month and another employee's overtime hours

and employee interviews.

exceeded 12 hours in a day. The affiliated company's human resources unit has recruited• The Company continued to use the internal e-Learning platform to offer training
courses to strengthen human rights standards, so that employees would have a clear

additional personnel and increased its employees' awareness of the overtime proceduresto avoid recurrence of excessive overtime hours.

Human Rights Due Diligence

Risk Issues

Mitigation Measures• Human rights and employment policies, code of
conduct, and recruiting management policy all
explicitly stipulate the policy on anti-discrimination.

Workforce Diversity andAnti-discrimination• Encourage each unit to recruit people fromdifferent ethnic groups.
• Identify whether the target company has humanrights risks, such as gender / racial / religious
discrimination during execution of an M&A project.

Remedial Measures

Target• Recruit additional indigenous school ambassadors• Equal job opportunities• Provide indigenous employees with 3 days of leave
for indigenous festivals, which is superior to what is
stipulated in law• Elimination of discrimination• Establish workplace facilities for disabled employees• Educate hiring managers not to ask about personal
information that has nothing to do with the job, andany issues that may be associated with discrimination
through interview training courses*1 The calculation method of the risk ratio is based on the evaluation method adopted for the Dow Jones Sustainability Index.
*2 The trainees from Cyntec Co., Ltd. were not included in the total number of trainees at this time due to the process of integration of teaching materials.

1356.4 Human Rights Protection

Risk Issues

About theESG Report

A Word from
the Management

Overview

Equal Working Hours andEqual Pay for Equal Work

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Mitigation Measures

Remedial Measures• Inspect the documents regarding the age of new
employees.

• Prohibition of child labor: An employee shall submit
the original copy of his/her national ID card for on-siteverification on the first day of work. The plants in China
are linked with a public security system to verify theage. In the Company’s personnel system, a warning will
be issued and a file cannot be created for the data of
personnel who are younger than 16 years old.

• Care for the human rights of foreign migrant
workers.
No Child or Forced Labor

Sustainable
Management• Strengthen human rights management and allow
free entry and exit.
• Respect freedom of religion and provide places orinformation on religious beliefs.

• Zero placement fee recruitment: The employment
process and management of foreign migrant workers are
optimized, and a zero placement fee recruitment policy
for such works is implemented.

• Manage overtime hours and days off and regularly
inspect the remuneration, which shall not be lower
than the local minimum wage; determine theremuneration by job responsibility.

• Implement a system warning mechanism and control ofovertime hours and working days.
• Train employees to be capable of multiple tasks, balance
overtime hours, and plan a production schedule withcustomers to avoid excessive overtime work.

Employee Relations
and Social
Engagement

Target• No child labor.
• Zero placement fee
recruitment process.
• No involuntary labor.

• Reasonable working
hours with employees'
physical and mental healthconsidered.
• Competitive remuneration.

• There is no differential treatment or discrimination insalary due to gender, age, race, and other factors.

• Employees have the legal right to establish,
participate in, or refuse to join associations orgroup agreements.
Freedom of Association• In order to strengthen the "collective bargaining"mechanism, after the current term of the labor
representatives at the labor-management conference
expires, the reelection will be held through voting by all
employees.
• The coverage percentage of the worldwide collective
agreements and unions is 71.5%.

136• Creation of an environment
for free expression andcommunication

Appendix

6.4 Human Rights Protection

Risk Issues

Occupational Health and
SafetyPrevention of Sexual
Harassment and Illegal
Infringements in the
Workplace

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Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Mitigation Measures

Remedial Measures

Target• Establish maternal health protection regulations
for employees and provide health education
information during pregnancy and after childbirth.

• Set up a health management center to provide
comprehensive health management solutions, such as
health care, health promotion, and employee assistance.

• Provision of a healthy andsafe work environment• Provide friendly parking spaces, aisles in the staff
cafeteria, and a warm "Mom Station".

• The plants in China have formulated 3-phasemanagement measures for female employees.
Employees shall take the initiative to file a report, and therelevant departments are engaged in joint management.

• Comply with laws and regulations to formulate
management measures, and set up a hotline,
mailbox, and assistance stations for sexual
harassment complaints.

• Set up a global whistleblowing management mechanism.

• Offer an online course on sexual harassment
prevention to promote employees' training in thisregard.

Appendix• Create a friendly workplace• Organize education and training on the preventionof illegal infringement and sexual harassment in theworkplace.
• Establish procedures for responding to and investigating
incidents of illegal infringements during performance of
duties.

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Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.4.3 Gender Equality and Care
Delta is committed to setting up a friendly and equitable workplace environment and providing the following care and benefits superior to regulations:• Google's responsible supply chain team chose Delta's plant in Thailand as a key sustainable supplier. At the time, female employees of the plant accounted for 75%*1 of all
employees. With Delta's equitable workplace environment, women can participate in the design, production, and testing of products, provide power for the latest technologies of
the world, and connect and enrich the world.
• The Thailand Plant worked with the International Labour Organization (ILO) and activated the "STEM Female Workforce and Career Development Training Program".
• Related training on unlawful infringement in the workplace in plants in Taiwan were provided for 1,196 participants.
• Delta provides comprehensive care project for mothers and infants, exclusive mother and infant gifts, exclusive parking spaces for pregnant employees, warm and comfortablebreastfeeding environment, and loving mother's spaces.
• Where a child of an employee in a plant in Taiwan is under the age of 2 and the employee is required to personally feed (collect) milk, in addition to the prescribed rest time,
another 1 hour of paid breastfeeding (milk collection) time is given each day.
• Employees in plants in China enjoy 1 hour of paid breastfeeding leave every day after childbirth before their child reaches 1 year old.
• We provided mother and infant care for 139 employees in plants in Taiwan in 2020, which was a 61.6% increase from the previous year. We also organized parenthood seminars
for 227 participants.

Statistics for Unpaid Parental Leave in Taiwan
Male

FemaleSubtotal

Number of employees eligible for unpaid parental leave in 2020 (A)*2

905

257

1,162

Number of employees applying for unpaid parental leave in 2020 (B)

11

52

63

Number of employees expected to return to work from unpaid parental leave in2020 (C)

14

47

61

Number of employees returning to work from unpaid parental leave in 2020 (D)

8

43

51

Number of employees returning to work from unpaid parental leave in 2019 (E)

8

37

45

Number of employees returning to work from unpaid parental leave in 2019 andworking for more than one year (F) *3

8

36

44

Reinstatement Rate (D/C)

57.1%

91.5%

83.6%

Retention Rate (F/E)

100.0%

97.3%

97.8%

Item of Statistics

138*1 Google VR Film of Life at DET: The Powered By Me project
was executed and filmed in June 2020 when female employees
accounted for approximately 75% of all employees.
*2 Number of employees eligible for unpaid parental leave in 2020
(A): Employees who applied for maternal leave of more than
56 days and paternity leave for more than 1 day in the 3 years
from January 1, 2018 to December 31, 2020 (TW)
*3 Number of employees returning to work from unpaid parental
leave in 2019 and working for moe than one year (F): Numberof people who continued to work for more than one year after
reinstatement from unpaid parental leave in 2019.

6.4 Human Rights Protection

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Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Care for Foreign Migrant Workers
Plants in Taiwan responded to global manufacturing developments and customer requirements and transferred production lines of certain overseas plants back to Taiwan. Taiwan plants
employ foreign migrant workers in response to manpower needs, and all hiring process and management matters are in compliance with international human rights and Responsible
Business Alliance (RBA) regulations.

Achievements in Care for Foreign Migrant Workers
IssueManagement Level

Benefits and Participation in
Events

Item
Foreign Migrant Worker Management
Regulations

Optimization of migrant worker hiring procedures and management matters

Implementation of the Zero Placement Fee
policyMigrant workers are not required to pay agency expenses or other hiring expenses

Strengthen human rights management for
dormitories

Free access to dormitories No confiscation or custody of passports or licenses

Respect religious freedom

Provide religious venues or information

Provide training in their native languages

Company policies and regulations, labor contracts, operating instructions for machines andequipment, hazard labels, training materials, activity information, and health examination
consultations are all translated into their native languages

Events are designed to encourage
participation and inclusion

We organize LOHAS Day events and ball games for all employees, provide native languagetranslation, and design special puzzles and food trucks specifically for migrant workers

Encourage participation in external activities

Outstanding migrant worker selection and talent contests

Regular seminars

Convene routine quarterly seminars, company complaint mailbox/telephone, employee feedback
box, migrant worker services, agent company hotline, and groups on social media such as LINE andFacebook

Health awareness campaigns

We provide information on health education (e.g., influenza and communicable diseases) and use
Q&A activities with rewards to encourage participation; we also post information in migrant worker
groups and the bulletin boards of dormitories

Special meals

We provide special meals from migrant workers' home countries each month

Public facilities in the dormitory

We set up prayer rooms, libraries, common dining areas, and a fitness center

Related disease prevention measures forresponding to COVID-19

We provide masks, body temperature measurement in the morning and evening, health statussurveys, contact history surveys, and regular disinfection of common areas of the dormitory

General Care

Healthy and Safe Environment

Results

139

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Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.4.4 Employee Rights and Communication
Delta has always maintained open communication between labor and management and implements positive bilateral communication mechanisms. With a 71.5% global coverage rateof collective bargaining agreement and union, employees can voice their opinions through a diverse range of communication channels including regular labor management meetings,
Employee Welfare Committee meetings, employee representative seminars, and the employee opinion mailbox. We use communication and interviews to listen to what employees careabout and express care for their feelings.
We also maintain strict confidentiality of the complaint information and promptly take related improvement measures. A total of 372 cases of internal opinions and 12 whistleblowing andcomplaint cases in Taiwan, which have all been investigated and closed, and relevant improvement measures have been taken.

Statistical Data on Employee Feedback in Delta's Plants in Taiwan

140

Communication
ChannelNumber of
Cases

Number ofProcessed
Cases

Labor-management
Meeting

33

33

Employee Welfare
Committee Meetings

251

251

Other Channels

60

60

Foreign MigrantWorkers Forums

28

28

Main Improvement Items• Adoption of low-GI healthy food materials for employee meals• Adoption of a license plate recognition system for the parking lot• Cancellation of the prepayment and deduction system for employee meals and switched the system
to direct card swiping for payment calculation and deduction• Enhanced maintenance and repairs of dormitory equipment, strengthened human rights
management for dormitories, and adopted registration for staying out instead of roll call
• Provided Thai and Vietnamese versions of documents required for communication

6.5 LOHAS Workplace

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Overview

Sustainable
Management

6.5 LOHAS Workplace

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

employees on night shifts were examined.
We implement tiered health management in accordance with regulations and the results

Delta continued to pursue work and life balance in 2020 to create a safe, healthy,

showed that there were no irregularities related to work. The general health examinationand friendly work environment. We obtained numerous awards in recognition of ouris divided into 5 tiers. The most common irregularities include body mass index,

achievements.

cholesterol levels, and blood pressure. Employees rated by the hospital responsible forthe examinations as having level 2 to level 5 irregularities can use system announcements• "First Prize" in the "Global Views" CSR Outstanding Project Happy Enterprise Category(2020 / 4)
• "Happy Enterprise Award" in the Taoyuan City Government Excellent Enterprise Awards

to actively register or arrange health consultation with the Health Management Center. A
total of 799 employees obtained consulting services from the onsite doctor or nurse andreceived recommendations for medical services and health information.

(2020 / 11)• Sports Company Certification by the Sports Administration of the Ministry of Education(2020 / 11)• Second prize in the "Buying Power – New Product and Service of Social Innovation
Purchase Reward Program" from the Small and Medium Enterprise Administration,

We also organize health promotion activities of the Company based on the proportion ofirregularities found in the results of health examinations. We provide medical equipment
such as weight and body fat scales and blood pressure meters in accessible parts of allplants to help employees implement self-management of their health.

MOEA (2020 / 12)
The percentage of Taiwanese employees aged 40 to 64 (inclusive), who are required totake a health examination every 3 years in accordance with the Occupational Safety and6.5.1 Comprehensive Health Management andPromotion

Health Act, was 95%. The Company has fulfilled its responsibility for reminding employees
who had not taken the examination as required by law, and many of them were those who
were unable to return to Taiwan for the health examination due to the pandemic this year.

Delta is committed to employee health and well-being and our core values for workplace
health are based on the 4S (Say, Stay, Strive, and Social). The expenditures on health

We organized a diverse range of health promotion activities as follows:

promotion activities in Taiwan increased by 19.1% compared to the previous year. We use
the results of employee health examinations and feedback from past activities to continue• We hosted a total of 130 rounds of health promotion activities this year. They wereto revise and adjust the key points of the projects each year.

attended by 20,359 people which was an increase of 26.2% from the previous year.
• 805 employees participated in a fat loss contest as the Company promoted a low-2020 was designated as the cardiovascular health protection year and we added

GI diet. The average fat reduction rate was 5.5% and employees lost a total of 1,003

examinations of cardiovascular functions in general health examinations. We provide

kilograms, up 206.8% from the previous year.

employees older than 50 with annual health examination and the examination rate•is 94.5%*; The advanced health examination participation rate was 74.0%. 100% of• We received the Excellent Healthy Workplace certification from the Health Promotion

employees involved in special operations such as ionizing radiation, n-hexane, lead,

Administration, Ministry of Health and Welfare. Taipei Headquarters applied for anddust, manganese, nickel, and high noise received health examinations while 99.4% ofreceived the "safe workplace certification" from the Department of Health for the first141

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Appendix

time and completed 76.0% of the training for first floor equipped with AED. We also
completed the certification and extension for Tainan Plant.
• Taoyuan Plant and Tainan Plant received the "Health Promotion Label – Accredited
Healthy Workplace" Health Promotion Administration.
• Delta encouraged employees and the public to donate blood to support public welfare.
921 employees responded this year and Delta received the "Annual Best Public WelfareEnterprise Award".
We set up a smart healthy office in Taipei in 2020 to adopt energy conservation, intelligence,and health as core design concepts and create a more convenient, intuitive, and responsive
office space to meet users' needs. We integrate building automation solutions andtechnologies and comply with the latest WELL building standards to infuse healthy andhuman-oriented concepts into Delta's green buildings. The solutions are divided into six
major sectors including the digital management center, shared conference rooms (U-Office),
smart conference rooms, open office (WELL-Office), employee lounge areas (breastfeedingroom and massage room), and mobile conference rooms. We also set up fall detection
equipment and enhanced user protection management.
Neihu Science Park encouraged major corporations to gather at the open space before Delta
Headquarters and more than 1,000 people donated blood.

Delta's Healthy Workplace Implementation Cycle

Collect Data on
employee health

142

Health risk assessment
and analysis

Health Instructions
and Consultation

Create a healthpromotion plan

Sustainable healthmanagement

6.5 LOHAS Workplace

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Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.5.2 Employee Care during the COVID-19 Epidemic
Protecting the health of employees became Delta's primary goal in response to the COVID-19 epidemic. The Health Management Center has activated disease prevention measures andserves as the safety net for disease prevention as well as protector of all employees for consultation, care, and companionship. The disease prevention measures are as follows:

Care for Delta's Global Employees during the Epidemic
Enhanced
Communication• We limited overseas travel and encouraged the use of video conferences. Where it is necessary for employees to go on business trips, we provide disease
prevention kits.
• We organized 15-minute online exercise courses and online health seminars for employees in Europe.

Mental Support• We provide a disease prevention care hotline and provide employees with disease prevention knowledge, health education, and emergency medical
assistance.
• Health management personnel provide care and follow up on employees with needs to collect information on cases and provide instructions for quarantine.

DiseasePrevention
Assistance• We provided disease prevention supplies, financial support, and insurance plans, and distributed face masks and disinfectants to all employees in certain
areas.
• We provided equipment or subsidies for work from home and increased the allowances for employees assigned to plants in India.

Flexible Work
Hours

• We implemented separate attendance for employees in certain areas and implemented remote work or separation of work hours based on requirements.
• We adjusted the format of activities in Taiwan and provided health and disease prevention education which resulted in 4,394 interactions with employees.

Health and
Safety• We promoted disease prevention safety and social distancing awareness, monitored employees' body temperature daily, and set up an online notification
system.
• We conducted health surveys and contact history surveys, and strengthened disinfection of the environment and contact control measures.

6.5.3 Childbirth Benefits and Care
Delta continues to improve care for mothers and infants, and we have established heartwarming and comfortable breastfeeding environments in all plants. We redecorated thebreastfeeding room in the Taipei Plant this year to provide mothers with a friendly environment for breastfeeding. This enhances children's immune systems, reduces the cost of childcare,balances work and childcare, and thereby increases the retention rate. The number of employees who participated in mother and infant care programs in 2020 increased by 61.6% fromthe previous year, and 227 participants attended the workplace parenthood seminars.

1436.5 LOHAS Workplace

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Communication
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Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.5.4 Balancing Life and Work
Delta promotes the "LOHAS Workplace" and "Sports Company" targets and promotes
work and life balance based on the motto of "Live Better, Work Smart." Delta promotes the
Employee Assistance Program (EAP) and the EAP counseling service was used 130 times
in 2020. 98.0% of the interviewees believed that the EAP helps improve their emotional
state at work and their work performance.

Highlight Projects• Family Day: We used the online virtual reality puzzle activity for the first time to build
team cohesion. We also designed a multi-lingual interface for foreign employees andfully demonstrated our resolve for the integration of diverse ethnic groups. We invitedthe orchestras of the deaf and blind to perform and a record high number of 5,128
participants attended the event.
• Sports Projects: Promoted sports activities and the idea of using sports for teambuilding. We invited the ultramarathon runner Tommy Chen to speak on how to make

Delta’s senior executives took part in Delta Family Day events and had fun with employees.

changes by changing the way we view things. We organized a running class of 134
runners to help them learn correct skills and mindset. A total of 346 employees and6.5.5 Social Engagement

family members supported the Hualien Pacific Ocean & East Rift Valley Marathon in
December 2020.

• Delta actively participates in energy education and charity activities including the• Due to the epidemic, activities were changed to outdoor activities, scaled down, or

workplace experience program organized with the Ministry of Labor and visit of students

organized online. We organized bicycle tours and led 118 employees on 3 separate

from Chongqing Junior High School in New Taipei City to visit Delta's headquarters. We

routes to challenge themselves.

provide energy education and introduction to the electronics industry to help them with• We organized online ceremonies for commending senior and model employees toexpress our gratitude for employees who remained at their post.

future career development.
• We promote the idea of sustainable travel and in-depth cultural travel to learn about theessence of culture in Taiwan.
• We organized charity procurement to support disadvantaged groups in society,purchased slave free chocolate from the Netherlands, and worked with charity
organizations to organize exclusive handicraft activities for Delta. The annual charity
purchases in Taiwan totaled 35,590 USD and we won second prize in the "Buying Power– New Product and Service of Social Innovation Purchase Reward Program" from the
Small and Medium Enterprise Administration, MOEA.

144

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A Word from
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Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.6 Social Engagement

Strategic Direction
Delta has adopted 3 key strategies
in its execution including "energy

KPI

Future Goals

DeltaMOOCx

KPI: Cumulative DeltaMOOCx
views■ 2020 Target
Accumulate over 9 million views
for DeltaMOOCx education
videos■ 2021: 11 million views■ 2022: 13 million views■ 2023: 15 million views

Key Initiatives for Alignment
with SDGs

conservation and climate education","popularizing green buildings and lowcarbon transportation", and "talentcultivation" to use the Company's
core competencies and resources
to increase the environmental
protection awareness of the public

Achieved■ 2020 Performance
More than 10 million cumulative
DeltaMOOCx views

while improving equality and quality ofeducation.

Commitments
Delta monitors major issues andclimate trends of the globe andcontinuously adjusts strategies tomeet the requirements for knowledge
and actions across the world. The
Company also continues to invest
resources in environmental protection,energy conservation, carbon emissions
reduction, and education.

Social MediaKPI: Number of people
reached via climate education(headcount)■ 2020 Target
Accumulated 8.25 million views
on social network media■ 2021 Target
Accumulate 10 million views onsocial network media■ 2020 Performance Achieved
Accumulated 9.38 million views
on social network media■ 2022 Target
Accumulate 11 million views onsocial network media■ 2023 Target
Accumulate 12 million views onsocial network media• We used real environmental and spatialconversion cases and high-quality online training
courses to actively promote healthy and energysaving buildings to help society combat the
epidemic.
• We shared our experience in creating an online
learning platform to help teachers improve theirskills for producing online courses and using
resources. Delta also provides incentives fortalents to study abroad in disciplines related to theenvironment.

• Delta produced the world's first 8K ultra-highdefinition environmental protection documentary"Water with Life" and played the documentary at
charity events to increase the public awarenessof water resources and changes in the marine
ecology caused by climate change.
• We communicate the latest energy and climate
information of the globe and improve the qualityof public environmental knowledge. We also workwith important think tanks in Taiwan and abroad
to include green building cases into studies inprestigious journals.
145

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A Word from
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In addition to providing quality products and services,

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.6.1 Popularizing Green Buildings and Low-Carbon Transportation

Delta also actively participates in various activities
that benefit society. We have achieved great results inpopularizing green building and transportation, promoting

Helping the Injured Create a Healthy, Energy-efficient, and Comfortable Environment
for Long-term Disease Prevention and Rehabilitation

science, energy education and climate action, and active
talent cultivation. Delta invested approximately 9.07

To help burn victims with disease prevention, Delta Electronics Foundation (the Foundation) donated high-performance

MUSD in social engagement in 2020 and talent cultivation

fresh air ventilation system and UNO air quality monitoring solutions to Sunshine Social Welfare Foundation to help theaccounted for the largest share with 64%. It is followed

injured recover in a healthy and energy-efficient space.

by expenditures for popularizing green building andtransportation with 17%, charitable donations with 8%, and

The Foundation also works with Green Comfort Health Architecture to set up double-layer glass for insulation, and extract

expenditures for promoting science, energy education andheat from computer rooms to reduce air-conditioning energy consumption. With the fresh air ventilation system andclimate action with 7%, popularizing green buildings withimproved insulation, we expect to save approximately 30% of the electricity consumption for air-conditioning and reduce

3%, and others with 1%.

CO2 and PM2.5 concentration by 80% to 90%. The Foundation also purchased the Taiwan Century Temperature Rise

Type of Philanthropic Activities
6.5%

mask sleeve from the Sunshine Knitting Team for use by Delta's volunteers in their work to extend the useful life of facemasks while helping the disadvantaged with their career development.

Charitable Donations
Community Investment

40.3%

Total
100%

Commercial Initiatives
53.2%

Philanthropic Contributions
8,177,233

Cash Contributions
Time of Employee Volunteering
In-kind Giving
Management Overheads
Total 9,069,997 (USD)

86,023

146

307,251

499,489

Delta Electronics Foundation and Sunshine Social Welfare
Foundation held a press conference to disclose the cooperation
to create a healthy and energy-efficient rehabilitation environment

Burn patients of Sunshine Social Welfare Foundation sewed themask covers featuring temperature record of Taiwan for the past
century for the Delta Electronics Foundation

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Sustainable
Management

Added WELL and LEED ZERO Courses to Promote Both
Energy Conservation of Buildings and HealthCommunication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendixand has received 1,724 submissions. The 5 items (sets) of submissions that have been
completed are great examples for demonstrating and promoting green buildings with low
energy consumption.

Delta Electronics Foundation has organized the "Green Collar Architects Training
Workshop" for many years. Due to the epidemic in 2020, it has become increasingly

The theme of the 2020 Delta Cup was "Sunshine—a Childhood Dream" and we collected

important to adopt indoor ventilation technologies to reduce the risk of infections. The

designs centered around the theme of "kindergarten" from across the globe. The "AFoundation and the Architecture & Building Center organized the first WELL healthy

Kindergarten Built by Tetris" submitted by the Huaqiao University team and the "Step Into thebuilding standards and concept course to introduce the concepts and designs of healthy

Sunshine" submitted by the Kunming University of Science and Technology team stood out

buildings.

from over 235 submissions and gained the favor of our international judging panel, winningFirst Place in Nanping, Fujian province, and Bayingol Mongolian Autonomous Prefecture,

In addition, Delta organized the first "LEED Zero-Carbon Building Course" with the U.S.

Xinjiang province, respectively. The designers of "A Kindergarten Built by Tetris" adopted

Green Building Council and Taiwan Green Collar Association and introduced the latest

pre-fabricated modules for construction to significantly increase the feasibility and costinternational "net zero" building guidelines. The two online courses and physical courses

effectiveness of the project and enrich the use of space. It incorporated active and passive

were attended by more1,000 attendees.

solar energy strategies and integrated intricate and practical technical applications. "StepInto the Sunshine" offered ventilation areas and heating applications for the building to meet

Building a Microclimate Database Ensures the Effective
Management of Energy-consuming Building Equipment

regional characteristics. The technical innovation also created new ideas in the design
language and achieved a high-quality integration of passive technologies and architecturaldesign.

Delta Electronics Foundation, the Central Weather Bureau, the Taiwan Architecture &Building Center, and the International Climate Development Institute established theDelta Cup is characterized"Green BIM Building Microclimate Database" which incorporated data from 26 monitoringby the motto "Making

stations in Taiwan in 2020. Building Information Modeling (BIM) was also used to help

D r e a m s C o m e Tr u e " a n darchitects implement energy conservation designs based on microclimate conditions near

we have already completed

the base, and provide operations, maintenance, and management of energy-consuming

construction projects for 5

equipment in existing buildings. The database continues to provide customized services

winning works. We havefor weather data and uses the data applications in public buildings in Taiwanese cities toconfirmed the construction

emphasize the effectiveness of energy conservation and influence government policies.

of the "A Kindergarten Built
by Tetris" which won First

Promoting Green Buildings

Place in Nanping in the 2020
contest. It will be used for the

To actively promote reusable energy including solar power and green building technology,

construction of a green andDelta has sponsored the "Delta Cup International Solar Building Design Competition"

low-carbon kindergarten insince 2006. This competition has had over 90 participating countries, with 8,700 teams,

Nanping.

"A Kindergarten Built by Tetris" is now a project for Jinglong
Kindergarten in Jianyang District, Nanping, Fujian province147

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Case Study: Green Hope of the MountainSun

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Calculating Energy Savings from Donated Certified Green Buildings
Since 2009 Delta has donated 5 certified green buildings, including the Delta Building and Yun-Suan Sun Green Building

Qiaojia County near Ludian was devastated by the Ludian

Research Center at National Cheng Kung University (NCKU), the Delta Building at National Tsing Hua University (NTHU),

earthquake in Yunnan 2014. Dazhai High School had

the Kuo-Ting Optoelectronics Building at National Central University (NCU), and the Namasia Minquan Elementary School.

insufficient space for teaching and learning activities andIn 2020, Delta Group’s five donated green buildings reduced, in total, 1.66 million kWh of electricity and 848 tons of CO2e

its equipment was old. The earthquake had renderedemissions. The EUI of the Delta Building at National Tsing Hua University was higher because although Delta's energy

buildings dangerous and reconstruction was required.

management and monitoring system was incorporated into the laboratory, the air-conditioning system must operate around

Delta donated 76.6 MUSD for the construction of the Delta

the clock during experiments, resulting in increased electricity consumption and reduced energy conservation effects.

Sunshine General Lecture Hall for Dazhai High School in
Qiaojia County, Yunnan which was inaugurated on June

Delta's Donated Green Buildings

28, 2020.
Donated Green Buildings
Zeng Yan, Deputy Chief Architect of China National
Engineering Research Center for Human Settlements,
stated that the "Delta Building" had incorporated thedesign concept of a "sunshine campus" during design. It
fused modern education ideals with low-carbon building
technologies to create a new form of campus space anduse experience and education to spread low-carbon
ideals.

Group Photo at a Delta Sunshine Campus Activity

148

Green Building
Certification

Energy Saving Performance*1

The Delta Building at National Cheng Kung
University (NCKU)(Inaugurated in 2009)

EEWH(School Category)• 2020 EUI: 86.21• Highest energy saving rate to date: 56%*2

Yun-Suan Sun Green Building Research Centerat National Cheng Kung University (NCKU)(Inaugurated in 2011)

LEED Platinum
Grade, EEWH
Diamond• 2020 EUI: 24.23• Highest energy saving rate to date: 85%*2

Delta Building at National Tsing Hua University(NTHU)(Inaugurated in 2011)

EEWH Bronze• 2020 EUI: 82.85• Highest energy saving rate to date: -3%*3

The Kuo-Ting Optoelectronics Building at
National Central University (NCU)(Inaugurated in 2011)

EEWH Bronze• 2020 EUI: 24.43• Highest energy saving rate to date: 70%*3

The Delta Building at the Namasia Minquan
Elementary School(Inaugurated in 2012)

EEWH Diamond• 2020 EUI: 1.05
• Highest energy saving rate to date: 93%*4*1 Delta calculates EUI of each green building in line with the methodologies from the literatures cited on page p.148. EUI = Electricity
Consumption (kWh) / Area per year (kWh/m2/year).Annual electricity usage refers to purchased electricity not including selfgenerated solar power. The following are excluded from EUI calculation: lab electricity (The Delta Building at NTHU and The Kuo-Ting
Optoelectronics Building at NCU) and indoor parking area (for applicable buildings)..
*2 <Bureau of Energy, Ministry of Economic Affairs> 2019 Energy Audit Annual Report for Non-Productive Industries (P.24): 160.9 KWh/
m2 (Office buildings, parking lots not included).
*3 <Bureau of Energy, Ministry of Economic Affairs> 2019 Energy Audit Annual Report for Non-Productive Industries (P.24): 80.3 KWh/m2(general university EUI, indoor parking lots not included)*4 <Ministry of Economic Affairs and Ministry of Education> Energy Conservation Action Plan for Government Agencies and Schools (page19) approved by the Executive Yuan (December 8, 2017) elementary school group 2 EUI: 15 (kWh/m2).

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ESG Report

6.6 Social Engagement

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.6.2 Promote Energy and Climate Education
Continue to Enhance Climate Education on Campus and Expand to Marine Ecological Conservation Actions
The Delta Electronics Foundation has a longstanding committment to training volunteers. In 2020, the Foundation
noted the severe coral bleaching caused by rising sea temperatures and worked with the Museum of Marine Scienceand Technology for adapting to warm seawater. We trained Delta volunteers on the importance of the coral reef to theprotection of the ecosystem and climate and led the restoration of coral reefs to support marine ecology and biodiversity.
The global COVID-19 epidemic prevented the effective implementation of Delta energy education, science education,
green building activities, and other (coral) volunteer activities in China, Taiwan, and Thailand. The number of Delta

Delta volunteers are devoted to coral restoration.

volunteers, service hours, and beneficiary students slumped in 2020. The volunteer service data for 2019-2020 are as
follows:

Sung-Mu Pai, Delta volunteer
Volunteer Item

EnergyEducation

Science
Education

Green
Buildings

Biodiversity

Total
The volunteer activities provided me with

Year

2019

2020

2019

2020

2019

2020

2019

2020

2019

2020

Number of Volunteers

568

47

75

80

0

80

0

29

643

236

opportunities for taking the children out ofclassrooms and participating in coral protection
work on the beach. We not only gained knowledgeof popular science on the marine ecosystem

Number of Volunteer
Hours

10,855

544

2,240

2,000

0

1,600

0

112

13,0954,256

and coral, but also tied coral reef with our own
hands. I truly felt that I did my part to protect theenvironment for children. My son also said that he

Number of Service
Recipients

54,205Serviced Schools
and Classes (if any)

63

3,157

32,00046,080024,00001070

86,20574,307

looked forward to returning in the future to see thecoral he had planted. He also made a pledge to be
more environmentally friendly.

34

0

100

0

50

0

0

63

184

149

6.6 Social Engagement

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Academic Assistance - Hope for Pearl

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

8K "Water with Life" Wins International Acclaim and Delta
Continues to Promote Videos on Marine Ecology

Delta has sponsored the "Hope for Pearl " of the Xinhua Compassion Education
Foundation since 2008 and made donations to sponsor 19 "Delta Pearl Classes" for 720

The Delta Electronics Foundation and the NHK Enterprises team produced an 8K

high school students with good performance in ethical conduct and academic records fromenvironmental protection documentary titled "Water with Life" which won the Goldfinancially challenged families. The company donated a total of 0.827 MUSD. It sponsoredAward in the short documentary category in the 53rd WorldFest-Houston International

130 students at Hunan Rucheng First High School, Suzhou No. 2 High School of Anhui,

Film Festival in 2020 and was selected for the 11th Asian Pop-Up Cinema in Chicago.

and Ningde Nationality Middle School, Fujian in 2020.

Delta and the Delta Electronics Foundation also jointly organized the contest for the 8K
documentary "Songs of Whales" and invited image processing specialists to use creative

Like their predecessors, all 23 Delta-sponsored students in Hefei 168 Middle School andways to spread marine ecology concepts. We attracted 293 contestants in the period and

40 Delta-sponsored students in No.1 Middle School Yiyang City, Hunan were accepted

received 160 submissions. The works were incorporated into education materials for Delta

into prestigious universities in the National College Entrance Examination this year. All

volunteers to strengthen education on marine ecology in schools.

23 Delta-sponsored students in Hefei 168 Middle School were accepted into prestigious
universities as they used real action to express their gratitude for the care and resources

In China, we jointly launched the dialogue design and short video editing contest for theprovided to them by society and school.

8K documentary "Songs of Whales" in collaboration with Business Ecology in 2020. We

High-quality Climate Social Media Empower Positive Changes
for Public Welfare
The Delta Electronics Foundation has operated the "Low Carbon Life Blog" and the radio
show "Climate Battle in Taiwan" on IC Broadcasting. It also established the "Delta Energy
and Climate Special Award" of the Tseng Hsu-Pai Journalism Award to help the community
follow up on social changes including global sustainability and recovery policies, theenergy and transportation revolutions during the epidemic, and the impact of extreme
weather.
As of the end of 2020, more than 1,600 articles have been published on the blog and morethan 15,000 listeners have tuned in to the broadcast. The blog has reached an audienceof 9.38 million views on social media and received awards for 30 environmental news
productions.

“Water with Life” wins a Gold Remi Award at the WorldFest - Houston International Film Festival.

150

6.6 Social Engagement

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

attracted 973 contestants in the period and received

information on the designs and achievements of Delta's 27 plants, office buildings, schools, and other green buildings,

309 submissions. We organized 5 online workshops andas well as two data centers that obtained LEED certification from the U.S. Green Building Council. The Foundation also

invited VIPs from multiple NGOs to share their experiencepublished the 50% Energy Saving with Delta to share information on Delta achievements in reducing the unit production

on biodiversity, marine environment, and 8K technologies.

energy intensity by half within 5 years as well as energy management applications with the aim of achieving energy

We accumulated 57,000 online engagements and views

conservation with the industry.

and we hope to encourage the public to make contributions
to the protection of the marine ecology and sustainable
development of the environment.

Continuing International Cooperation to
Promote Taiwan's Green Buildings on the
Global Stage

Organizing Climate Salon Activities to Help the Public Learn about Energy
Conservation Strategies for Buildings and Industries
The Foundation organized the Architecture and Industry Energy Conservation and Climate Salon seminar in 2020 toshare its experience in energy conservation, building a healthy office environment, and cost-effective energy conservation
solutions for companies. To expand the reach of the event, the Foundation organized the Salon in Central and Southern

Taiwan for the first time to let participants visit the actual sites refurbished for energy conservation. We also used live
During the epidemic, the Delta Electronics Foundation

broadcasts on social media to help people participate in online discussions. The overall information communication andcontinues to follow online seminars and reports of the

diffusion were more effective than before and we attracted more than 6,000 viewers in the 2 live broadcasts.

United Nations and important international think tanks tosummarize and translate information on key issues suchas architecture, industry, transportation, and the ocean.
The Foundation also published the "Advances toward a
Net-Zero Global Building Sector" paper with the Vice Chair
of Working Group III, Intergovernmental Panel on Climate
Change (IPCC). The paper included the Magic School ofGreen Technologies at National Cheng Kung University
and the Namasia Minquan Elementary School as modelcases for low-energy consumption buildings for the world,
and was published in the prestigious journal, Annual
Review of Environment and Resources.

Promoting Energy Conservation throughDelta's Experience
The Foundation published a revised edition of Build Green
Buildings with Delta in 2020 which included comprehensive

The Publication of “Building Green with Delta 1&2”and “50%Energy Saving with Delta”

Three experts shared their experiences to create healthy andenergy-saving office environments at the Delta Climate Salon.

1516.6 Social Engagement

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.6.3 Talent Cultivation
Che-Yu Liu, Vice President, Shun Yang Plastic Co., Ltd.
DeltaMOOCx Online Learning Platform Continued Operations
During the Epidemic

I began studying industrial automation due to work requirements. DeltaMOOCx isgreat because it summarizes the key points in thick textbooks and incorporates

DeltaMOOCx is a free online learning course platform designed by the Delta Electronics

the equipment or technologies used in the industry to make concepts moreFoundation for regular high schools, engineering high schools, as well as automation

comprehensive and easier to understand. Designing a robot requires knowledge

programs in universities with the aim of reducing the gap between academic studies andof motor control, machinery, and digital machine vision. DeltaMOOCx provides

industrial applications. In 2020, the platform added basic science courses for senior andcomprehensive courses for me to set up my own laboratory at home.

vocational high schools and they were viewed more than 10 million times. The integrity of
the courses on automation was also ahead of online education in the Chinese-speaking
world. The Foundation published the book "New World of Online Learning — Universities:
DeltaMOOCx Cultivates Automation Talents" to share its experience in the creation of theTraining Professional Talents and Giving back to Society

platform in hopes of attracting more teachers to provide online education.
Delta Electronics Foundation sponsors long-term scholarship to cultivate outstanding
talents for society. The "Chinese Education in Northern Thailand" project has benefited
more than 125 students in Northern Thailand. We use the "Delta Environmental
Scholarship" and "Delta Corporate Environmental Ethics Grant" to encourage young
leaders and scholars to study environmental issues abroad. We have helped train
hundreds of graduate students and scholars in the energy, environmental, and urban
design sectors. In addition, the Foundation also provides civil servants with scholarships
for overseas studies and we have helped train more than 50 outstanding civil servants.

The publication of DeltaMOOCx introduces the experience of establishing an online teaching platform.

1526.7 Occupational Safety and
HealthAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

6.7 Occupational Safety and HealthStrategic Direction

Commitments

KPI

Establish the ISO 45001 Management

Pay attention to the safety and health

System for all major plants across theof the work environment of workers

Rate of Recordable Work-relatedCases of Employees *globe and implement preventive safety

and commit to creating a safe andand health management

healthy workplace

Key Initiatives for
Alignment with SDGs

■ 2020 Target
0.98■ 2020 Performance
0.96

Promote prevention-oriented safety and■ 2021 Target
0.95

worker safety

health management systems to ensure

Regularly inspect workplace safety* Rate of recordable work-related cases of employees = ( Number of recordable work-related injuries of employees + The number if cases ofrecordable work-related ill health.) / Number of hours worked * 1,000,000

1536.7 Occupational Safety and
HealthAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Occupational Safety and Health Management System

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

We set up safety and health management units in all plants and appointed professionalsafety and health personnel to take charge of safety and health management planning,

Providing employees with a safe and healthy workplace is one of Delta’s most fundamental

implementation, supervision, and audits. Delta has established occupational safety

obligations as a corporate citizen. The Company's main production plants in Taiwan

departments in production-oriented plants in China and Thailand which report directly

and China and its Thailand Plant comply with the P-D-C-A strategy for the Occupational

to the highest-ranking local supervisor. In R&D and administration-oriented units in

Safety and Health Management System to systematically promote occupational safety

Taiwan, an occupational safety and health management department reports directly toand health management tasks. Regions and plants with ISO 45001 certification include:

the Chief Executive Officer. All plants follow requirements of local regulations for labor

Taiwan: Taoyuan Plant 1, 2, 3, and 5, Chungli Plant 1, 2, and R&D Plant, Tainan Plant 1,

and management to jointly form the Occupational Safety and Health Committee which

and Cyntec in Hsinchu. China: Dongguan Plant, Wujiang Plant, Chenzhou Plant, Wuhu

convenes regular meetings to review, coordinate, and propose recommendations for

Plant, and Huafeng Plant. Thailand: DET Plant 1, 2, 5, and 6. Delta’s Taoyuan Plant 1, 2, 3,

safety and health management.

and 5 and Tainan Plant 1 also passed CNS 45001 certification and obtained the TOSHMS
certification.

Key Discussions of Delta's Regional Occupational Safety and Health Management Committees
Regions

Taiwan(Delta & Cyntec)• COVID-19 disease prevention

Key Discussion Topics

Percentage of Total Employees

Supplementary Description

154• Implementation of the occupational
health and safety management system

China• High-risk operation management andcontrol• Machine guarding implementation.

• Review of proposals for improving
occupational health and safety• Added Delta smart manufacturing system(DSM) equipment safety management49%

No applicable requirements• Number of employee representatives: 99• Number of committee members: 203

Thailand• Number of committee members: 210

N/A

47%

• Number of employee representatives: 35• Number of committee members: 74

6.7 Occupational Safety and
HealthAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Risk Assessment and Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

employees. Through the observational learning of cross-industry inter-inspector activities,
factory personnel safety and health management exchanges and interaction were

To effectively prevent the occurrence of occupational injuries, the Company has

improved as were manufacturing plant audits. Certain main production plants shallestablished hazard identification, opportunities, and risk assessment procedures toinclude inspection results in the safety and health evaluation activity. The units with theidentify potential hazardous factors of the work environment, process, activities, products,

most improvement shall receive commendations and bonuses as well as rewards for theand services. We identify potential hazards, assess their risks, specify unacceptable

implementation personnel to encourage improvements in how employees practice safety

risk levels, and prioritize engineering control measures for unacceptable risks. We also

and health management in their work.

identify and assess risks of contractor personnel and discuss operational risks and control
measures in construction meetings or toolbox meetings.

Management of Hazardous Chemical Substances andWorkplace Monitoring

In terms of the procurement of new equipment and process upgrades, we managechanges, implement pre-purchase safety evaluations, and increase safety measures

To prevent the use of hazardous substances from affecting employee health, plants mustfor mechanical equipment. We also select low-hazard chemicals to replace high-hazard

prioritize the use of low-hazard chemicals and set up regional ventilation equipment tochemicals and adopt source control measures to ensure personnel and plant safety

effectively remove hazardous gases. If the plants need to purchase new chemicals or

and health. We implement regular hazard identification and risk assessment for work

replace chemicals used in the manufacturing process, they must follow the management

procedures and control unacceptable risks. The responsible units must file applications forprocedures of the plant for implementing changes. They must conduct risk assessment for

operations with higher risks and levels of hazards, and the operations can only be carriedhazard ratings for the use of such chemicals and obtain approval from related units before

out with the approval of related units. To ensure safe operations of power equipment andthey can be used in the plant.

facilities, our manufacturing plants regularly use an infrared thermal imaging camera toundertake non-blackout inspections for early detection of any abnormalities and rapid

We use personal respiratory protection equipment that meets the requirements of local

response with effective improvement measures.

laws and regulations based on the conditions of the use of chemicals. For processes
with a higher risk of respiratory protection hazards, we implement corresponding mask

Occupational Health and Safety Checking

fit tests to ensure their effectiveness. If a plant has employees of other nationalities, theplant translates information on the hazardous chemicals into the language used by the

The plants shall conduct automatic inspections and self-inspections in accordance with

employee to ensure that all workers understand related hazards. Our respective plants,

government regulations and the Company's operation standards to ensure the safety of

pursuant to practical operational hazardous situations and regulatory requirements,

employees and plants. Safety and health management department personnel shall carry

regularly appoint monitoring institutions to implement workplace monitoring to control

out routine occupational safety assessments and inspections. They must also performhazardous factors in the workplace. Delta uses the results of these tests to carry out

sampling inspections on contractors' operational safety.

onsite improvements, thereby lowering the occurrence of workplace illnesses.

Plants in each region shall promote inter-industry health and safety inspection activities.

The main chemical hazards in Delta's plants are organic solvents. We focus our

Inspectors include safety and health management department employees, factory work

monitoring on tin oxide, isopropanol, lead, carbon dioxide, and others. Our physicalenvironment safety personnel, and departmental work environment safety promotion

monitoring focuses on noise, light, high temperature, and more. A few personnel in certain1556.7 Occupational Safety and
HealthAbout theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

plant areas carry out radioactive operations. We work to prevent employee workplace exposure to hazardous elements
and their causes according to local statutory regulations. As such, operators that handle hazardous materials undergo
special health checks and the results of the checks are used for tiered management.

Training and Communication
To improve workers' safety and health awareness and abilities to respond to emergencies, Delta held safety and healtheducation training in accordance with regulatory requirements. Delta also used emails and bulletin boards to post ororganize safety knowledge Q&A to increase employees' ability to identify hazards in the work environment and increase
their safety and health awareness knowledge for hazard and disaster prevention and response.
In 2020, Delta Taiwan, China, and Thailand (including the subsidiary Cyntec) implemented workplace safety and healthtraining for new recruits and current employees (course contents included hazardous chemicals, machinery and equipment
operations, electrical safety, and respiratory protection), emergency response and fire drills for licensed employees

Respiratory Quantitative Fit Test for Personal Respiratory
Protection Equipment

required by regulations (e.g., first aid personnel, forklift operators, fixed crane operators, and organic solvent operations
supervisors), and personnel safety training for the introduction of new equipment or new technologies. We recorded a totalof 275,000 participants for related internal (external) on-the-job training who registered with more than 968,000 hours of
training. Courses are conducted in local languages or the languages used by non-native employees. We also administeredpost-training tests to evaluate the effectiveness of the training.
We established safety, health, and environmental protection regulations for contractors to enhance safety andmanagement of contractors in plants. We require contractors to abide by occupational health and safety laws and Delta's
regulations. Contractor personnel who intend to enter Delta plants must receive the necessary occupational safety
and health training, pass tests, and sign the hazard notice before they may enter the plants for operations. Contractor
personnel in Taiwan, Dongguan, Wujiang, and Thailand Plants have recorded 15,500 hours of safety training. Taoyuan
Plant 3 took part in the Workplace Safety Week program organized by the competent authority in 2020 and set up a boothat the venue to use fun activities to promote occupational safety and health knowledge.
Participation in the Workplace Safety Week Program Organizedby the Competent Authority156

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the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Occupational Injuries Incident Management
To ensure the rapid response of related units in the event of an occupational incident, the Company has establishedincident notification and processing procedures for employees and workers in plant areas under Delta jurisdiction. In theevent of a near miss, occupational injury, or occupational disease, first aid, reporting, investigations, and improvement
measures must be implemented for each incident. The Company must also propose improvement measures for the root
cause of the incident. All improvement measures must be horizontally expanded to prevent the recurrence of similar
incidents. If employees who have returned to work after an occupational injury or occupational disease still have concerns
regarding occupational injuries or occupational diseases in the workplace, they may address the concerns with employeesof the Occupational Safety and Health Department of each plant at any time. The Company prioritizes the safety andhealth of employees above all and continues to implement corresponding improvement measures to ensure the safety andhealth of employees.
First Aid Personnel AED Training

Delta employees recorded more than 170 million work hours in 2020. The statistics of occupational injuries and diseases
in Delta operations in different regions are specified in the table on the following page. The Company recorded zero
occupational injury-induced deaths, severe occupation injuries, occupational disease-induced deaths, and recordable
occupational diseases in 2020. Rate of recordable work-related cases of employees was 0.96, which met the target rateof recordable work-related cases of employees 0.98. The incidence rate of number of recordable work-related casesof employee was higher for men. In terms of injury type, they consisted mainly of mechanical injuries. To prevent thehazards of such mechanical injuries, plants shall implement equipment source management, install safety devices whenpurchasing machinery, and list them as routine inspection items. Due to incomplete data on the work hours of nonemployees (i.e., contractor personnel) in plants, the data cannot be disclosed and the Company shall formulate methods
for compiling statistics and continue to collect data.
Delta's Pingjhen Plant was fined 2,135 USD by Taoyuan City Government for violation of the Occupational Safety and
Health Act during an onsite inspection by an occupational hazard labor inspection institution. The company has adopted
corresponding engineering improvements and operation control measures and regularly followed up on the implementation
status of control measures to ensure employees' operation safety.

157

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HealthAbout theESG Report

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the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Statistics of Occupational Injuries and Diseases *1-6
Major Production Sites

Operations Sites and R&D Center

Occupational Injuries and Diseases

Employees

All workers who are nonemployees but whose work
and/or workplace is controlled
by the organization

Total
TaiwanChina

ThailandTaiwanChina

Other Regions

Occupational injury-induced death rate

0

0

0

0

0

0

0

Severe occupational injury rate

0

0

0

0

0

0

0

0.80

0.70

2.18

0.89

0

0.80

0.96

Occupational disease-induced death rate

0

0

0

0

0

0

0

Recordable occupational disease rate

0

0

0

0

0

0

0

Occupational injury-induced death rate

0

0

0

0

0

0

0

Severe occupational injury rate

0

0

0

0

0

0

0

Recordable occupational injury rate

0

0

0

0

0

0

0

Occupational disease-induced death rate

0

0

0

0

0

0

0

Recordable occupational disease rate

0

0

0

0

0

0

0

Recordable occupational injury rateAwardsTaoyuan R&D Center received the following awards:• Commended by the Occupational Safety and Health Administration, Ministry of Labor for active assistance in promoting improvement measures for SME workplaces and madesignificant contributions to public welfare activities for occupation safety• "Excellent Safety and Healthy Family" and "Safety and Healthy Family Contribution Award" from Taipei City Government*1 Statistical count excludes traffic accidents during commutes; the occurrence rate is accurate to two digits after the decimal point and the third digit is rounded off unconditionally*2 Occupational injury-induced death rate = number of deaths caused by occupational injuries / total hours worked * 1,000,000*3 Severe occupational injury rate = number of severe occupational injuries / total hours worked * 1,000,000*4 Recordable occupational hazard rate = recordable number of occupational injuries / total work hours * 1,000,000*5 Occupational disease-induced death rate = number of deaths caused by occupational diseases / total hours worked * 1,000,000*6 Recordable occupational hazard rate = recordable number of occupational diseases / total work hours * 1,000,000

158About the
ESG Report

7

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Appendix
7.1

Screening Criteria of Reporting Boundaries

7.2

Environmental Data

7.3

Social Data

7.4

Index of GRI Standards Indicators and SASB Index

7.5

Summary of Information Assured (ISAE 3000)

7.6

TCFD Practices Across the Four Core Elements

7.7

External Assurance Statement and Report159About the
ESG Report

7.1 Screening Criteria of
Reporting Boundaries

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

7.1 Screening Criteria of Reporting Boundaries
Considering the realities of fact disclosure and actual managerial requirements, the boundaries of this report are not entirely consistent with the consolidated financial report of thecompany. Operations, R&D and production sites stated in the report are fully listed as follows:

Operations Sites and R&D Center

Main Production Plant

TaiwanTaiwan• Delta Electronics, Inc. (Taipei HQ, Taoyuan R&D Center, Chungli Plant 1,
Chungli R&D Building, Chungli Plant 2, Pingjhen, Tainan Branch), Delta
Networks Inc., Cyntec Co., Ltd., Vivotek Inc.

• Delta Electronics Inc. (Taoyuan Plant 1 and Plant 2), Cyntec Co., Ltd., Vivotek
Inc.

China
China
• Delta Electronics (Shanghai) Co., Ltd.; Delta Greentech (China) Co., Ltd.

Other overseas regions• Delta Electronics (Netherlands) B.V.
• Delta Electronics (Japan), Inc.
• Delta Electronics Int'l (Singapore) Pte. Ltd.

• Dongguan: Delta Electronics (Dongguan) Co. Ltd.; Delta Electronics Power(Dongguan) Co. Ltd.; Delta Networks (Dongguan) Inc.
• Wujiang: Delta Electronics (JIANGSU) Ltd.;Delta Electronics Components(Wujiang) Ltd.; Delta Video Display System (Wujiang) Ltd.;Cyntec Electronics(Suzhou) Co., Ltd.;Cyntec (Suzhou) Co. Ltd.;DELBio (WUJIANG) Co.
,Ltd.;PreOptix (Jiangsu) Co. Ltd.
• Wuhu: Delta Electronics (Wuhu) Co. Ltd.
• Chenzhou: Delta Electronics (Chenzhou) Inc.

• Delta Electronics (Americas) Ltd.
• Eltek AS

Thailand• Delta Electronics (Thailand) Public Co., Ltd.

160

About the
ESG Report

7.2 Environmental Data

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

7.2 Environmental Data
Main Production Plant *1
Attribute

Category

Energy*3

Input

Water
Resources

OutputGHG
EmissionsOverall Production Plant *2

Item
2017

2018

2019

2020

2017

2018

2019

2020

Purchased Electricity (GJ)

1,773,490

1,751,810

1,792,944

1,936,649

1,781,240

1,761,642

1,802,005

1,944,925

Plant-Owned Solar Power(GJ)

51,72573,156

83,632

91,15951,72573,156

83,632

91,159Natural Gas (GJ)

85,45597,52788,816

88,94585,49597,531

89,32989,522

Diesel (GJ)

13,112

11,540

8,031

7,279

8,653

11,665

8,162

7,321

Gasoline (GJ)

10,212

8,877

3,371

5,128

10,614

9,304

3,371

5,128

Liquid Petroleum Gas (GJ)

177,603

174,427

154,092

154,944

177,603

174,427

154,092

154,944

Tap Water (Megaliters)

4,757.2

4,202.5

3,749.1

3,745.5

4,760.7

4,206.9

3,753.2

3,751.5

Rainwater (Megaliters)

8.1

24.2

37.1

37.1

8.1

24.2

37.1

37.1

Total Water Withdrawal(Megaliters)

4,765.3

4,226.7

3,786.2

3,782.6

4,768.8

4,231.1

3,790.3

3,788.6

Water Productivity Intensity(Metric ton/MUSD)

638.8

537.5

505.0

463.0

635.4

535.1

499.0

453.0

Total Water Recycled(Megaliters)

173.0

159.6

430.9

508.7

173.0

159.6

430.9

508.7

Recycled Water Usage
Rate(%)

3.5

3.7

10.3

12.0

3.5

3.7

10.3

11.9

Scope 1 (Metric ton-CO2e)25,21925,661

18,554

14,13125,25425,67018,59814,183

Scope 2 (Metric ton-CO2e)
Market-based

367,152

296,698

237,637

162,627

368,436

298,159

238,962

163,628161

About the
ESG Report

7.2 Environmental Data

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Main Production Plant *1
Attribute

Category

GHG
Emissions

Water
Discharge
OutputWater
Consumption

Nonhazardous
Waste

162

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Overall Production Plant *2

Item
2017

2018

2019

2020

2017

2018

2019

2020

Scope 1 + Scope 2 (Metric
ton-CO2e) Market-based

392,371322,359

256,934

176,758

393,690323,828

258,120

177,811

Scope 2 (Metric ton-CO2e)
Location-based

367,152

369,535

377,507389,867

368,436

370,846

378,648

390,868

Scope 1 + Scope 2 (Metric
ton-CO2e) Location-based

392,371395,196

396,061

403,998

393,690323,828

397,246

405,051

Carbon Intensity (Metric
ton-CO2e/MUSD)

52.7

41.2

34.5

21.8

52.5

41.2

32.7

21.4

Domestic Sewage(Megaliters)

3,259.6

3,210.7

2,467.3

2,303.3

3,262.4

3,214.2

2,470.6

2,303.4

Process Wastewater(Megaliters)

564.9

213.7

186.7

216.9

564.9

213.7

186.7

216.9

Total Water Discharge(Megaliters)

3,824.5

3,424.4

2,654.0

2,520.2

3,827.3

3,427.9

2,657.3

2,520.3

Water Consumption(Megaliters)

940.8

802.3

1,132.2

1,262.4

941.5

803.2

1,133.0

1,268.3

Incineration Without Energy
Recovery (Metric Ton)

36.4

21.8

33.9

13.6

36.4

21.8

33.9

13.6

Landfill (Metric Ton)

2,132.1

2,963.9

427.3

305.1

2,215.8

3,003.4

481.4

366.4

Waste to Energy Recovery(Metric Ton)

7,827.2

6,075.6

6,737.8

7,297.8

7,827.2

6,075.6

6,737.8

7,297.8

Compost (Metric Ton)

451.7

457.8

694.5

0.0

451.7

457.8

694.5

0.0

Recycling (Metric Ton)

30,422.9

29,910.8

31,251.8

28,051.4

30,457.0

29,944.0

31,295.4

28,081.9

Subtotal (Metric Ton)

40,870.3

39,429.9

39,145.3

35,667.9

40,988.1

39,502.6

39,243.0

35,759.7

AppendixAbout the
ESG Report

7.2 Environmental Data

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Main Production Plant *1
Attribute

Category

Hazardous
Waste

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Overall Production Plant *2

Item
2017

2018

2019

2020

2017

2018

2019

2020

Incineration Without Energy
Recovery (Metric Ton)

252.9

258.6

383.2

231.0

252.9

258.6

383.2

231.0

Landfill (Metric Ton)

20.3

134.3

39.2

36.7

20.3

134.3

39.2

36.7

Waste to Energy Recovery(Metric Ton)

1,401.4

1,295.9

634.3

828.4

1,401.4

1,295.9

634.3

828.4

Recycling (Metric Ton)

1,786.5

1,547.3

2,308.6

2,572.9

1,794.5

1,555.3

2,344.4

2,591.2

Subtotal (Metric Ton)

3,461.1

3,236.1

3,365.3

3,669.0

3,469.1

3,244.1

3,401.1

3,687.3

Total Waste Volume (MetricTon)

44,331.4

42,666.0

42,510.6

39,336.9

44,457.2

42,746.7

42,644.1

39,447.0

Waste Intensity (Metric ton/
MUSD)

5.95

5.46

5.73

4.86

5.93

5.44

5.67

4.76

Hazardous Waste Recycled
Rate (%)

51.6%

47.8%

68.6%

70.1%

51.7%

47.9%

68.9%

70.3%

Volatile Organic
Compounds (Metric ton)

108.8

110.5

128.2

135.9

108.8

110.5

128.2

135.9

Output

Waste

Waste Gas
Emissions*1 Main production plants: Dongguan, Wujiang, Wuhu, Chenzhou plants in China, DET plant 1, 5, and 6, and Taoyuan plant 1 and 2 in Taiwan, Cyntec Hsinchu and Huafeng plants are within the scope of the
SBT commitment.
*2 Overall production plants include Delta's main plants and Eltek production plants acquired after 2015 (plants in the United States and India).
*3 The fuel heating value of each plant adopts fixed data, including natural gas: 9,000 kcal/m3, diesel: 10,200 kcal/kg, gasoline: 10,300 kcal/kg, and 1 MWh is equivalent to 3.6 GJ for unit conversion.

163

About the
ESG Report

7.3 Social Data

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

7.3 Social Data
Item

2017

2018

2019

2020

48

48

47

27.2

407

383

643

236

87,366

86,10180,54583,804

Offer Letter Acceptance Rate (%)

-

-

75.6

81.2

Open Positions Filled by Internal Candidates from Transfer and Promotion (%)

n.a.

21.0

23.6

27.8

Unpaid Leave for Childcare Rate (%)

87.0

81.6

93.0

97.8

Completion Percentage of Global Human Rights Courses (%)

n.a.

n.a.

n.a.

85.2

Social Participation Contributions (MUSD)

11.06

9.53

6.99

9.07

Incidence of Employee Occupational Injury on Record

0.96

1.07

0.91

0.96

Lost-Time Injury Frequency Rate (LTIFR) - Contractors

0

0

0

0

Female in the Total Labor Force Rate (%)

-

45.1

44.9

46.8

Female Manager Rate (%)

-

32.1

29.8

32.8

Female in Junior Managerial Positions Rate (%)

-

44.6

50.5

57.8

Female in Top-level Managerial Positions Rate (%)

-

12.1

12.2

13.2

Female in Income-generating Managerial Positions Rate (%)

-

21.2

18.7

20.1

Female in STEM Positions Rate (%)

-

22.2

21.7

21.9

Employees with Disabilities in the Company Rate (%)

-

0.5

0.7

1.13

Minority Employees in the the Company Rate (%)

-

2.7

2.6

2.87

Category

Global Average Hours Trainings per Person (Hour/Person/Year) *1
Education(Energy/Science Education/Green Buildings/Biodiversity)
Number of Volunteers in Energy and Climate Education (Person)

Employees Worldwide (person)

Number of Employees Worldwide (Person)

Attractiveness to Talents

Human Rights Protection

Social Participation

Occupational Health and Safety

Tolerance of Diversity

164

AppendixAbout the
ESG Report

7.3 Social Data

A Word from
the Management

Category

Engagement Survey Response

Engagement Score_Employee
Category *4

Sustainable
Management

Overview

Item

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

2017

2018

2019

2020

Total Employee Engagement Score*2

83

75

75

91

Coverage Percentage*3

29.3

26.8

26.8

64.3

Response Percentage*2

-

59

59

92

Senior Managers

-

90

90

96

Middle Managers

-

82

82

91

Low-level Managers

-

79

79

88

General Employees

-

74

74

88

Production Line Employees

-

-

-

93

Male

90

Female92

61 Years Old and Above89

Appendix

Engagement Score_Gender

51 to 60 Years Old
Engagement Score_Age

No consistent sub-categories in theanalyses over the years

94

41 to 50 Years Old

93

31 to 40 Years Old

92

30 Years Old or Under

89*1 Average training hours per person in 2019 and before was "number of in-service employees at the end of the year", and average training hours per people in 2020 is revised to "number of employees who
were once employed during the year", so the average training hours per person decreased significantly.
*2 In the 2020 Engagement Survey, the total engagement score of indirect employees was 89 points (83% of indirect employees responded); the total engagement score of direct employees was 93 points (99%of direct employees responded), and the combined total score was 91 points. Delta plans to conduct a global engagement survey every two years. Therefore, actions were taken as per the results in 2018 tomake continuous improvement in 2019.
*3 In 2018 and 2019, the questionnaires were distributed only to indirect employees worldwide. In 2020, direct personnel in China were included, so the coverage percentage increased. The coverage
percentage of the survey in 2020 was based on all employees who received the questionnaire divided by the number of employees worldwide, i.e. around 53,886 / 83,804 = 64.3%.
*4 Hierarchical classification of the engagement survey: Senior-level was at the level of directors or above, middle-level was at the level of senior deputy managers or above, senior chief engineers, seniorsection chiefs or above, chief engineers, and coordinators-in-chief.

1657.4 Index of GRI Standards
Indicators and SASB Index

About theESG Report

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

7.4 Index of GRI Standards Indicators and SASB Index
The structure of this report follows the Global Reporting Initiative's (GRI) "GRI Sustainability Reporting Standards (2016)" (GRI Standards), GRI 303 (2018), GRI 403 (2018), and GRI 207(2019). We also referenced the SASB Electrical Electronic Equipment Standard (2018) and Hardware Standard (2018).

GRI
Index Name

Disclosure Number

Related Chapters

Page

RemarkGRI 102 General Disclosures (Core)

166

102-1

Name of the organization

1. Overview

11

102-2

Activities, brands, products, and services

1. Overview

11

102-3

Location of headquarters

1. Overview

11

102-4

Location of operations

1. Overview

11

102-5

Ownership and legal form

1. Overview

11

102-6

Markets served

1. Overview

11

102-7

Scale of the organization

1. Overview

11

102-8

Information on employees and other workers

1. Overview, 6.2 Talent Attraction

102-9

Supply chain

4.5.2 Ratio of Localized Procurement and Materials

102-10Significant changes to the organization and its supply
chain

-

102-11

Precautionary principle or approach

4.2.1 Board of Directors and Duties, 4.8 Emerging Risks Response to the COVID-19 Epidemic

41-45,
66-69

102-12External initiatives

2.3 Responding to Global Sustainable Development

25-28

102-13

Membership of associations

1. Overview, 2.3.3 Participation in Associations

11, 28102-14

Statement from senior decision-makerA Word from the Management

Delta is a publicly listedcompany in Taiwan

11, 113-125
58-59
-

4

No significant change

7.4 Index of GRI Standards
Indicators and SASB Index

About theESG Report

Disclosure Number

A Word from
the Management

Sustainable
Management

Overview

Index Name

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Related ChaptersPage

102-16

Values, principles, standards, and norms of behavior

2.2.1 ESG Policy and Mission, 6.4 Human Rights Protection

23

102-18Governance structure

1.1 Delta Electronics Organizational Structure

13102-40

List of stakeholder groups

3 Communication with Stakeholders

30-31

102-41

Collective bargaining agreements

6.4 Human Rights Protection

133

102-42

Identifying and selecting stakeholders

3 Communication with Stakeholders

30-31

102-43

Approach to stakeholder engagement

3.1 Stakeholder Communication and Response

30-31

102-44

Key topics and concerns raised

3.1 Stakeholder Communication and Response

33

Employee Relations
and Social
Engagement

Appendix

RemarkSome entities includedin the consolidated
financial statements are
not included in the ESG
report102-45

Entities included in the consolidated financial statements

7.1 Screening Criteria of Reporting Boundaries

160

102-46

Defining report content and topic boundaries

About the ESG Report2102-47

List of material topics

3 Communication with Stakeholders

35102-48

Restatements of information--

No significant change

102-49Changes in reporting--

No significant change

102-50

Reporting period

About the ESG Report2102-51

Date of most recent report

About the ESG Report2102-52

Reporting cycle

About the ESG Report2102-53

Contact point for questions regarding the report

About the ESG Report2102-54Claims of reporting in accordance with the GRI
Standards

About the ESG Report2102-55

GRI content index

7.4 Index of GRI Standards Indicators and SASB Index

102-56External assurance

About the ESG Report166-1762

167

7.4 Index of GRI Standards
Indicators and SASB Index

About theESG Report

Disclosure Number

A Word from
the Management

Overview

Index Name

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Related Chapters

Environmental
Protection andEnergy Savings

Page

GRI 102 General Disclosures (Non-Core)168

102-15Key impacts, risks, and opportunities

3.2 Materiality Assessment

32-35

102-17

Mechanisms for advice and concerns about ethics

6.4.2 Human Right Risk Identification and Mitigation

134-137

102-19Delegating authority

2.2.2 Organization Responsible for Promoting Sustainability

24102-20Executive-level responsibility for economic,
environmental, and social topics

2.2.2 Organization Responsible for Promoting Sustainability

24102-21

Consulting stakeholders on economic, environmental,
and social topics

3.1 Stakeholder Communication and Response30

102-23Chair of the highest governance body

4.2 Enhancing the Board of Directors’ Functions

41-43

102-24

Nominating and selecting the highest governance body

4.2 Enhancing the Board of Directors’ Functions

41-43

102-25

Conflicts of interest

4.2 Enhancing the Board of Directors’ Functions

43-45

102-26

Role of highest governance body in setting purpose,values, and strategy

4.2 Enhancing the Board of Directors’ Functions

41-43

102-27

Collective knowledge of highest governance body

4.2 Enhancing the Board of Directors’ Functions

41-43

102-28

Evaluating the highest governance body’s performance

4.2 Enhancing the Board of Directors’ Functions

41-43

102-29Identifying and managing economic, environmental, andsocial impacts

3.2 Materiality Assessment

32

102-30Effectiveness of risk management processes

3.2 Materiality Assessment

32-34

102-31

Review of economic, environmental, and social topics

3.2 Materiality Assessment

32-34

102-32Highest governance body’s role in sustainability
reporting

2.2.2 Organization Responsible for Promoting Sustainability

24102-33

Communicating critical concerns

3.2 Materiality Assessment

32

102-34Nature and total number of critical concerns

3.2 Materiality Assessment

35

102-35

Remuneration policies

6.2.3 Competitive Employee Compensation and Benefits

102-36

Process for determining remuneration

4.2 Enhancing the Board of Directors’ Functions

120-12142

Employee Relations
and Social
Engagement

RemarkAppendixAbout the
ESG Report

7.4 Index of GRI Standards
Indicators and SASB Index

Disclosure Number
102-38A Word from
the Management

Sustainable
Management

Overview

Index Name
Annual total compensation ratio

Communication
with Stakeholders

Corporate
Governance

Related Chapters

Environmental
Protection andEnergy SavingsPage

6.2.3 Competitive Employee Compensation and Benefits122

11-12, 32, 160

Employee Relations
and Social
Engagement

Appendix

RemarkGRI 201 Economic Performance*
103-1

Explanation of the material topic and its boundary

1. Overview; 3.2 Materiality Assessment; 7.1 Screening
Criteria of Reporting Boundaries

103-2

The management approach and its components

4.4 Transcending Customer Expectations; 5.2 Climate Change
and Carbon Management*

51, 75-80

103-3

Evaluation of the management approach

4.4 Transcending Customer Expectations; 5.2 Climate Change
and Carbon Management*

54, 75-80

201-1

Direct economic value generated and distributed

-

201-2

Financial implications and other risks and opportunities
due to climate change

5.2 Climate Change and Carbon Management-

Please refer to Delta
Electronics, Inc. 2020
Annual Report P.10

75-80

GRI 203 Indirect Economic Impacts*
103-1

Explanation of the material topic and its boundary

1. Overview; 3.2 Materiality Assessment; 7.1 Screening
Criteria of Reporting Boundaries

103-2

The management approach and its components

6.6 Social Engagement145-146103-3

Evaluation of the management approach

6.6 Social Engagement146-152

203-1

Infrastructure investments and services supported

6.6 Social Engagement146

11-12, 32, 160

GRI 204 Procurement Practices*103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 4.5.1 Overall Measures for
Supplier Sustainability Management; 7.1 Screening Criteria of
Reporting Boundaries

35, 55, 160

103-2

The management approach and its components

4.5.1 Overall Measures for Supplier Sustainability Management

56-57

103-3

Evaluation of the management approach

4.5.2 Ratio of Localized Procurement and Materials

58-59

204-1

Proportion of spending on local suppliers

4.5.2 Ratio of Localized Procurement and Materials

58-59

169

7.4 Index of GRI Standards
Indicators and SASB Index

About theESG Report

Disclosure Number

A Word from
the Management

Overview

Index Name

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Related Chapters

Environmental
Protection andEnergy Savings

Page

Employee Relations
and Social
Engagement

Appendix

RemarkGRI 205 Anti-corruption
205-2

Communication and training about anti-corruption
policies and procedures

4.2.2 Ethical Corporate Management

45

GRI 206 Anti-competitive Behavior

Legal actions for anti-competitive behavior, anti-trust,and monopoly practices

4.2.2 Ethical Corporate Management

45

Approach to tax

4.7 Comprehensive Information Disclosure and Shareholder
Communication

65

103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 4.5.1 Overall Measures for
Supplier Sustainability Management; 7.1 Screening Criteria of
Reporting Boundaries

32, 56-57, 160

103-2

The management approach and its components

4.5.1 Overall Measures for Supplier Sustainability Management

56-57

103-3

Evaluation of the management approach

4.5.2 Ratio of Localized Procurement and Materials

58-60

206-1

No anti-competitive
behavior nor anti-trust
and monopoly practiceoccurred during the year

GRI 207 Tax
207-1
GRI 301 Materials*

301-1

Materials used by weight or volume

4.5.2 Ratio of Localized Procurement and Materials

58-60

103-1

Explanation of the material topic and its boundary

About the ESG Report; 3.2 Materiality Assessment; 5.3 Energy
Management; 7.1 Screening Criteria of Reporting Boundaries

103-2

The management approach and its components

5.3 Energy Management

85-93

103-3

Evaluation of the management approach

5.3 Energy Management

85-93

302-1

Energy consumption within the organization

5.3.1 Energy Consumption; 7.2 Environmental Data86, 161

GRI 302 Energy*

170

32, 85, 160

No material records wereavailable to calculate theproportion of recycledmaterials used

7.4 Index of GRI Standards
Indicators and SASB Index

About theESG Report

Disclosure Number

A Word from
the Management

Overview

Index Name

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Related Chapters

Page

302-2

Energy consumption outside of the organization

5.6.4 Energy Saving Benefits of Products

107

302-3

Energy intensity

5.3 Energy Management

85

302-4

Reduction of energy consumption

5.3.2 Energy Conservation Projects

87

302-5

Reductions in energy requirements of products andservices

5.6.4 Energy Saving Benefits of Products

107

103-1

Explanation of the material topic and its boundary

About the ESG Report; 3.2 Materiality Assessment；5.4 Water
Resource Management

103-2

The management approach and its components

5.4 Water Resource Management

94-98

103-3

Evaluation of the management approach

5.4 Water Resource Management

94-98

303-1

Interactions with water as a shared resource

5.4.1 Identification of Water Risks and Response Measures

95-96

303-2

Management of water discharge-related impacts

5.4.2 Consumption and Effectiveness of Water Resources

96-97

303-3

Water withdrawal

5.4.2 Consumption and Effectiveness of Water Resources

96-97

303-4

Water discharge

5.4.2 Consumption and Effectiveness of Water Resources

96-97

303-5

Water consumption

5.4.2 Consumption and Effectiveness of Water Resources

96-97

103-1

Explanation of the material topic and its boundary

About the ESG Report; 3.2 Materiality Assessment；5.2
Climate Change and Carbon Management32, 73

103-2

The management approach and its components

5.2 Climate Change and Carbon Management

73

103-3

Evaluation of the management approach

5.2 Climate Change and Carbon Management

73

305-1

Direct (Scope 1) GHG emissions

5.2.2 Greenhouse Gas Inventory and Management

82-83

305-2

Energy indirect (Scope 2) GHG emissions

5.2.2 Greenhouse Gas Inventory and Management

82-83

305-3

Other indirect (Scope 3) GHG emissions

5.2.2 Greenhouse Gas Inventory and Management

83

305-4

GHG emissions intensity

5.2.2 Greenhouse Gas Inventory and Management

82-83

Employee Relations
and Social
Engagement

Appendix

RemarkGRI 303 Water*
32, 94-98

GRI 305 Emissions*

171

About the
ESG Report

7.4 Index of GRI Standards
Indicators and SASB Index

Disclosure Number

A Word from
the Management

Overview

Index Name

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Related Chapters

Environmental
Protection andEnergy Savings

Page

305-5

Reduction of GHG emissions

5.2.2 Greenhouse Gas Inventory and Management

82

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions

5.7.4 Air Pollution Prevention and Management

109

Employee Relations
and Social
Engagement

Appendix

RemarkGRI 306 Effluents and Waste*
103-1

Explanation of the material topic and its boundary

About the ESG Report; 3.2 Materiality Assessment；5.5 Waste
Management

103-2

The management approach and its components

5.5 Waste Management

99-101

103-3

Evaluation of the management approach

5.5 Waste Management

99-101306-2

Waste by type and disposal method

5.5.2 Waste Generation and Performance

100-101306-3

Significant spills

5.4.2 Consumption and Effectiveness of Water Resources

32, 99-101

98

GRI 307 Environmental Compliance

307-1

Non-compliance with environmental laws andregulations

5.7.1 Compliance with Environmental Protection Regulations

109

GRI 308 Supplier Environmental Assessment*

172

103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 4.5.1 Overall Measures for
Supplier Sustainability Management; 7.1 Screening Criteria of
Reporting Boundaries

32, 55, 160

103-2

The management approach and its components

4.5.1 Overall Measures for Supplier Sustainability Management

56-57

103-3

Evaluation of the management approach

4.5.1 Overall Measures for Supplier Sustainability Management

56-57

308-1

New suppliers that were screened using environmental
criteria

4.5.1 Overall Measures for Supplier Sustainability Management

56-57

308-2

Negative environmental impacts in the CPC and actions
taken

4.5.3 Supplier ESG Risk Assessment and Due Diligence
Conflict Minerals

59

No penalty of violationof environmental
regulations from 2017 to2020.

7.4 Index of GRI Standards
Indicators and SASB Index

About theESG Report

Disclosure Number

A Word from
the Management

Overview

Sustainable
Management

Index Name

Communication
with Stakeholders

Corporate
Governance

Related Chapters

Environmental
Protection andEnergy Savings

Page

Employee Relations
and Social
Engagement

Appendix

RemarkGRI 401 Employment*
103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 6.2 Talent Attraction; 7.1
Screening Criteria of Reporting Boundaries

103-2

The management approach and its components

6.2 Talent Attraction

103-3

Evaluation of the management approach

6.2 Talent Attraction; 6.5 LOHAS Workplace

401-1

New employee hires and employee turnover

6.2.1 Diversity and Inclusiveness Hiring

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

6.2.3 Competitive Employee Compensation and Benefits, 6.5
LOHAS Workplace

401-3

Parental leave

6.4.2 Human Right Risk Identification and Mitigation

32, 113, 160
113
114-117, 142
114-117120-124, 141144
138

GRI 403 Occupational Health and Safety*
103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 6.7 Occupational Safety and
Health; 7.1 Screening Criteria of Reporting Boundaries

32, 154, 160

103-2

The management approach and its components

6.5.1 Comprehensive Health Management and Promotion; 6.7
Occupational Safety and Health141-142, 153

103-3

Evaluation of the management approach

6.5.1 Comprehensive Health Management and Promotion; 6.7
Occupational Safety and Health141-142, 158

403-1

Occupational health and safety management system

6.7 Occupational Safety and Health

154

403-2

Hazard identification, risk assessment, and incident
investigation

6.7 Occupational Safety and Health155-157

403-3

Occupational health services

6.5.1 Comprehensive Health Management and Promotion

141-142403-4

Worker participation, consultation, and communication
on occupational health and safety

6.7 Occupational Safety and Health146-152403-5

Worker training on occupational health and safety

6.7 Occupational Safety and Health

156

403-6

Promotion of worker health6.5.1 Comprehensive Health Management and Promotion

403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

6.7 Occupational Safety and Health141-142
155

173

About the
ESG Report

7.4 Index of GRI Standards
Indicators and SASB Index

A Word from
the Management

Sustainable
Management

Overview

Communication
with Stakeholders

Corporate
Governance

Related Chapters

Environmental
Protection andEnergy Savings

Disclosure Number

Index Name

Page

403-8

Workers covered by an occupational health and safety
management system

6.7 Occupational Safety and Health155-156403-9

Work-related injuries

6.7 Occupational Safety and Health158

403-10Work-related ill health

6.7 Occupational Safety and Health141-142

6.3 Talent Learning Development

126

Employee Relations
and Social
Engagement

RemarkGRI 404 Training and Education
404-1

Average hours of training per year per employee

GRI 405 Diversity and Equal Opportunity*
103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 6.2 Talent Attraction; 7.1
Screening Criteria of Reporting Boundaries

103-2

The management approach and its components

6.2 Talent Attraction

126

103-3

Evaluation of the management approach

6.2 Talent Attraction; 6.5 LOHAS Workplace

127

405-1

Diversity of governance bodies and employees

6.2.1 Diversity and Inclusiveness Hiring32, 127, 160

114-117

Please refer to Delta
Electronics, Inc. 2020
Annual Report P.55,82

GRI 406 Non-discrimination*
103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 6.4 Human Rights Protection; 7.1
Screening Criteria of Reporting Boundaries

103-2

The management approach and its components

6.4 Human Rights Protection

133

103-3

Evaluation of the management approach

6.4 Human Rights Protection

134-135

406-1

Incidents of discrimination and corrective actions taken-

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 4.5 Supplier Sustainability
Management; 6.4 Human Rights Protection

32, 133, 160-

GRI 408 Child Labor*
103-1

174

32, 55, 134

No discrimination
incident occurred

Appendix

7.4 Index of GRI Standards
Indicators and SASB Index

About theESG Report

Disclosure Number

A Word from
the Management

Overview

Index Name

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Related Chapters

Environmental
Protection andEnergy Savings

Page

103-2

The management approach and its components

4.5 Supplier Sustainability Management; 6.4 Human Rights
Protection

56, 57, 59, 126

103-3

Evaluation of the management approach

4.5 Supplier Sustainability Management; 6.4 Human Rights
Protection

56, 57, 59, 126

408-1

Operations and suppliers at significant risk for incidents
of child labor

4.5.3 Supplier ESG Risk Assessment and Due Diligence
Conflict Minerals, 6.4.4 Employee Rights and Communication

59, 126

Employee Relations
and Social
Engagement

Appendix

RemarkGRI 409 Forced or Compulsory Labor*
103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 4.5 Supplier Sustainability
Management, 6.4 Human Rights Protection

103-2

The management approach and its components

4.5 Supplier Sustainability Management, 6.4 Human Rights
Protection

56, 57, 59, 134

103-3

Evaluation of the management approach

4.5 Supplier Sustainability Management, 6.4 Human Rights
Protection

56, 57, 59, 135

409-1

Operations and suppliers at significant risk for incidents
of forced or compulsory labor

4.5.3 Supplier ESG Risk Assessment and Due Diligence
Conflict Minerals, 6.4.4 Employee Rights and Communication

59, 140

32, 55, 134

GRI 412 Human Rights Assessment*
103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 4.5 Supplier Sustainability
Management; 6.4 Human Rights Protection

103-2

The management approach and its components

4.5 Supplier Sustainability Management; 6.4 Human Rights
Protection

56, 57, 59, 134

103-3

Evaluation of the management approach

4.5 Supplier Sustainability Management; 6.4 Human Rights
Protection

56, 57, 59, 135

412-1

Operations that have been subject to human rights
reviews or impact assessments

4.5.2 Ratio of Localized Procurement and Materials、6.4
Human Rights Protection

58-59, 134-137

412-2

Employee training on human rights policies orprocedures

6.4.4 Employee Rights and Communication

32, 55, 134

135

175

About the
ESG Report

7.4 Index of GRI Standards
Indicators and SASB Index

Disclosure Number

A Word from
the Management

Sustainable
Management

Overview

Index Name

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Related Chapters

Page

Employee Relations
and Social
Engagement

Appendix

RemarkGRI 414 Supplier Social Assessment*

103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 4.5.1 Overall Measures for
Supplier Sustainability Management; 7.1 Screening Criteria of
Reporting Boundaries

32, 55, 160

103-2

The management approach and its components

4.5.1 Overall Measures for Supplier Sustainability Management

56-57

103-3

Evaluation of the management approach

4.5.1 Overall Measures for Supplier Sustainability Management

56-57

414-1

New suppliers that were screened using social criteria

4.5.2 Ratio of Localized Procurement and Materials

58-59

Political contributions

NA

GRI 415 Public Policy
415-1

No political contributions
were madeGRI 418 Customer Privacy*
103-1

Explanation of the material topic and its boundary

3.2 Materiality Assessment; 4.4 Transcending Customer
Expectations; 4.6 Information Security Management32, 51, 62

103-2

The management approach and its components

4.4 Transcending Customer Expectations; 4.6 Information
Security Management54, 62-64

103-3

Evaluation of the management approach

4.4 Transcending Customer Expectations; 4.6 Information
Security Management54, 62-64

418-1

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data--

6.4.4 Employee Rights and Communication

140

GRI 419 Socioeconomic Compliance
419-1* Marked as material issues

176

Non-compliance with laws and regulations in the socialand economic area

No lawsuits or fines
regarding customer
privacy occurred in 2020

7.4 Index of GRI Standards
Indicators and SASB Index

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

SASB
Topic

Accounting Metrics

Percentage of Tier 1 supplier facilities audited in the
RBA Validated Audit Process (VAP) or equivalent,by (a) all facilities and (b) high-risk facilities

Code

TC-HW-430a.1

Unit ofMeasures%

Materials
Sourcing

Business Ethics

Product Security

Product Safety

Description of the management of risks associatedwith the use of critical materials

Suppliers who have introduced the Validated Assessment
Program (VAP) of the Responsible Business Alliance (RBA)
by themselves accounted for around 5.4% of the valid
copies of questionnaires(b) No high risk facilities (the suppliers who have adopted
VAP of RBA in this survey did not score below 65 points)

Supply Chain
Management
Tier 1 suppliers’ (1) non-conformance rate with the
RBA Validated Audit Process (VAP) or equivalent,and (2) associated corrective action rate for (a)priority non-conformances and (b) other nonconformances

Related Information

4.5.4 Supplier Audit Based on RBA Principles
TC-HW-430a.2

Rate

For key suppliers(a) In 2020, the Supplier Improvement Rate was 84%

TC-HW-440a.1
RT-EE-440a.1

NA

Not disclosed

Description of policies and practices for preventionof: (1) corruption and bribery and (2) anticompetitive behavior

RT-EE-510a.1

NA

Total amount of monetary losses as a result of legal
proceedings associated with bribery or corruption

RT-EE-510a.2

Reportingcurrency

USD 0 (4.2.2 Ethical Corporate Management)

Total amount of monetary losses as a result oflegal proceedings associated with anti-competitive
behavior regulations

RT-EE-510a.3

Reportingcurrency

USD 0 (4.2.2 Ethical Corporate Management)

Description of approach to identifying andaddressing data security risks in products

TC-HW-230a.1

NA

4.6.3 Establishment of Emergency Response Measures

Number of recalls issued, total units recalled

RT-EE-250a.1

Number

4.4.2 Improving Customer Relationship Management

Total amount of monetary losses as a result of legal
proceedings associated with product safety

RT-EE-250a.2

Reportingcurrency

4.4.2 Improving Customer Relationship Management

4.2.2 Ethical Corporate Management1777.4 Index of GRI Standards
Indicators and SASB Index

Topic

About theESG Report

A Word from
the Management

Overview

Accounting Metrics

Percentage of products by revenue that contain
IEC 62474 declarable substances

Percentage of eligible products, by revenue,
meeting the requirements for EPEAT registration orequivalent

Product Lifecycle
Management

Percentage of eligible products, by revenue,
meeting ENERGY STAR® criteria

Percentage of eligible products, by revenue, thatmeet ENERGY STAR® criteria

Weight of end-of-life products and e-waste
recovered, percentage recycled

Revenue from renewable energy-related andenergy efficiency-related products

178

Sustainable
Management

Code

TC-HW-410a.1
RT-EE-410a.1

TC-HW-410a.2

TC-HW-410a.3

RT-EE-410a.2

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Unit ofMeasures

Related Information%

The indicative Power Supply Business Group was selected
at this time. As per "Power Business Group Revenue
from products in compliance with IEC 62474 in 2020/
Power Supply Business Group product revenue in 2020",
100% was in compliance with IEC 62474 requirements.
For relevant management policies, please refer to 5.6.2
Hazardous Substances Policy and Management%

Most of Delta's products are in the business-to-business(B2B) category, hence are not applicable to the productcategories of EPEAT. Therefore, Delta does not apply forthe label, so there is no statistical data.

%

As for Delta's uninterruptible power system (UPS)
products, as per "Revenue from ENERGY STAR certified
UPS products shipped to the U.S. market by OBM in
2020/Revenue from UPS products shipped to the U.S.
market by OBM in 2020", 75% met the ENERGY STAR
certification criteira.

%

As for Delta's ventilation fan products, as per "2020
product revenue from ENERGY STAR certified ventilationfans / 2020 product revenue from overall ventilation fans",
69.1% of the revenue was in line with the ENERGY STAR
certification criteria.

Tons, %

As most of Delta's products are in the B2B category, it isdifficult to collect such information currently% by revenue

As most of Delta's products are in the B2B category, it isdifficult to collect such information currently

TC-HW-410a.4

RT-EE-410a.3

Appendix

Reportingcurrency

5.6.4 Energy Saving Benefits of Products

7.4 Index of GRI Standards
Indicators and SASB Index

Topic

About theESG Report

A Word from
the Management

Overview

Accounting Metrics

Sustainable
Management

Code

Communication
with Stakeholders

Corporate
Governance

Unit ofMeasures

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Related Information
7.2 Environmental Data

EnergyManagement(1) Total energy consumed, (2) percentage gridelectricity, (3) percentage renewable

RT-EE-130a.1

Gigajoules (GJ),
Percentage (%)(1)Total energy consumed: 2,284,104 GJ(2)Grid electricity: 910,649 GJ, contributed to 39.9% of thetotal energy consumed.
(3)Percentage renewable: 48.9%
5.5.1 Enhance Circular Recycling and Reuse
7.2 Environmental Data

Hazardous Waste
Management

Employee
Diversity &Inclusion

Amount of hazardous waste generated, percentage
recycled

Main Production Plants : 3,669.0 metric tonnes;
percentage recycled: 70.1%
Overall Production Plants: 3,687.3 metric tonnes;
percentage recycled: 70.3%

Number and aggregate quantity of reportable spills,
quantity recovered

RT-EE-150a.2

Number,
Kilograms (kg)Percentage of gender and racial/ethnic grouprepresentation for (1) management, (2) technicalstaff, and (3) all other employees

TC-HW-330a.1%

Number of units produced by product category

Activity Metrics

RT-EE-150a.1

Metric tons (t),Percentage (%)

TC-HW-000.A
RT-EE-000.A

5.7.1 Compliance with Environmental Protection
Regulations

6.2.1 Diversity and Inclusiveness Hiring

NumberNot applicable

Area of manufacturing facilities

TC-HW-000.B

Square feet (ft²)

Not applicable

Percentage of production from owned facilities

TC-HW-000.C

Percentage (%)

Not applicable

Number of units produced by product category

RT-EE-000.A

NumberAs it is a trade secret, it will not be disclosed

Number of employees

RT-EE-000.B

Number6.2.1 Diversity and Inclusiveness Hiring179

7.5 Summary of Information
Assured (ISAE 3000)

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

7.5 Summary of Information Assured (ISAE 3000)
No.

Assured Item

Information Assured

Page

Reporting Criteria
Annual Energy Savings (kWh) = [Σ(A×B) ×C] ÷1000 × 8 (hr) × 365 (day).

1

Electronic ballast
annual energy savingsin 2020

Assuming that end-users replace existing Magnetic
Ballasts with Electronic Ballasts, for shipments of Delta
Electronic Ballast for Fluorescent Lamps to 8 major
customers in 2020, annual energy savings for end-users
was 42 million kWh.

108

A: Maximum input voltage (W) of different models of Electronic Ballast
installed in the compatible Fluorescent Lamp based on the data from
customer’s product brochure.
B: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.
C: Energy Savings=10%.
Annual Energy Savings (kWh) = [∑(A×B×C) ×D] ÷1000×24 (hr)×365(day).
A: Rated output power (W) of each Delta server power model.

2Server power annual
energy savings in 2020

By comparing the efficiency of Delta Server Power to thatof 80 Plus Bronze requirements, for the shipments of 14
major customers in 2020, annual energy savings was 1.61
billion kWh.

108

B: At the 50% load condition, power loss (W) difference between Delta
server power and 80 Plus Bronze requirements.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.
D: Percentage of load=50%.
Annual Energy Savings (kWh) = ∑(A×B×C) ÷1000×1671 (hour/Year) *1.
A: Rated output power (W) of each Delta ventilating fan model3

Ventilating fans annual
energy savings in 2020

By comparing the efficiency of Delta ventilating fans to thatof USA Energy Star or Taiwan Energy Label requirements,
for shipments of products that have been certified by the
USA Energy Star or Taiwan Energy Label in 2020, annual
energy savings was 32 million kWh.

108

B: Energy saving rate (the difference of efficiency between Delta ventilating
fan and USA Energy Star/Taiwan Energy Label requirements divided bythat of USA Energy Star/Taiwan Energy Label requirements).
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.
*1: Usage time of 1671 hours/year refers to Japanese Industrial Standards (JIS C
9921-2 ).

180

Appendix7.5 Summary of Information
Assured (ISAE 3000)

No.

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Assured Item

Information Assured

LED street lights annual
energy savings in 2020

Assuming that end-users installed Delta LED street lights
to replace mercury street lights, for the shipments of LED
street lights to Taiwan in 2020, annual energy savings was
123 million kWh.

Page

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Reporting Criteria
Annual Energy Savings (kWh) = ∑(A×B) ×12 (hr)×365 (day).

4108

B: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.

By comparing the efficiency of Delta AC-DC adapters tothat of EU eco-design requirements for External Power
Supplies (EU 2019/1782), for shipments of the 46 main
AC-DC Adapter models*1 in 2020, annual energy savings
was 55 million kWh.

5

AC-DC adapter annual
energy savings in 2020

*1: Main product models are ADP-39CB BA, ADP-45AGBA, ADP45BG BA, ADP-45BG BC, ADP-45EG AA, ADP-45FE BE,
ADP-45FE FA, ADP-45FE FC, ADP-45HG BA, ADP-65AE BA,
ADP-65DE BA, ADP-65HB HCB, ADP-65HB HCE, ADP-65KE
BB, ADP-65MD AB, ADP-65ME BA, ADP-65XD AB, ADP65YD BA, ADP-65YH BA, ADP-90DE BA, ADP-90DE BC,
ADP-90FE DA, ADP-90LD DD, ADP-90LD FA, ADP-90LE BA,
ADP-90WH KA, ADP-90WH KB, ADP-120CR AA, ADP-120MH
TA, ADP-120MH TE, ADP-120TH BA, ADP-120VH BB, ADP120WH BA, ADP-120WH BB, ADP-180MB DB, ADP-180MB
DD, ADP-180MB KA, ADP-180MB KD, ADP-180TB BA, ADP180TB HA, ADP-240AB DB, ADP-240CB BA, ADP-240CB BB,
ADP-240EB BA, ADP-240EB BD, ADP-240GB BA.

A: Power consumption (W) difference between LED street lights andtheoretical replaced mercury street lights.

Annual Energy Savings (kWh) = {[∑(A×B) ×C×39.9 (hr/week) ×52 (week)] +[∑(D×B) ×56.05(hr/week) ×52 (week)] *1} ÷1000
A: On charge mode, power loss (W) difference between Delta product and
EU requirements at corresponding average efficiency.
B: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.
108

C: Percentage of load=56% (Refer to (EC) No 278/2009 analysis report *2).
D: On no load mode, power loss (W) difference between Delta product and
EU requirements.
* 1: Usage time refers to Page 22, Additional assessment in the frame of the review
study on commission regulation (EC) No. 278/2009 External Power Supplies.
* 2: Percent loading of 56% refers to Page 21, Additional assessment in the frame of
the review study on commission regulation (EC) No. 278/2009 External Power
Supplies.

181

7.5 Summary of Information
Assured (ISAE 3000)

No.

Assured Item

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Information Assured

Page

By comparing the efficiency of Delta PV Inverter (PVI) to
the minimum average efficiency 97.5%*1 of the ENERGYSTAR Market and Industry Scoping Report, for the
shipments of main PVI models*2 to North America andEurope*3 in 2020, annual energy savings was 10 million
kWh.

6*2: Main product models and series are RPIM6A, RPIM8A,
RPIM10A, RPIM15A, RPIM20A, RPIM30A120, RPIM50A
12s, RPIM70A, M88H121, M88H122, M125HV110, M125HV,M36U121, M42U121, M60U121, M60U122, M80U121,
M80U122.

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Reporting Criteria

Annual Energy Savings (kWh) = Σ(A×B×C×D×T) ×365 (day)÷1000
A: Rated output power (W) of each Delta PVI model.
B: Power loss (W) difference between Delta PVI and the ENERGY STAR
market investigation.

*1: ENERGY STAR Market and Industry Scoping Report

PV Inverter (PVI)
annual energy savingsin 2020

Communication
with Stakeholders

108

C: Percentage of load=100%.
D: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.
T: Usage time of various hours/day refers to NASA Daily solar radiation of
the Delta PVI’s shipping destination.

*3: Countries of shipments to Europe are Germany, France,
Spain, Netherlands, Luxembourg, Romania; US states ofshipments to North America are Maryland, Minnesota, Oregon,
Arizona, California, Georgia, New Jersey, New York.

Annual Energy Savings (kWh) = Σ(A×B×C) ×D×8 (hr)×365 (day)÷1000
A: Rated output power (W) of each Delta EV DC Charger model.
7

EV DC Charger annual
energy savings in 2020

By comparing the efficiency of Delta EV DC Charger tothe minimum efficiency 90% regulated by CHAdeMo, forthe shipments of EV DC Charger in 2020, annual energy
savings was 7.7 million kWh.

108

B: Power loss (W) difference between Delta EV DC Charger and CHAdeMo
requirements.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.
D: Percentage of load=100%.

8182

LED high bay annual
energy savings in 2020

Assuming that end-users installed Delta LED high bays
to replace Metal Halide high bays, and by comparing
the efficiency of Delta LED high bays to the minimum
efficiency requirements for the procurement of Metal
Halide high bays (Distribution: Direct, LER: Closed)
issued by the United States Department of Energy, forthe shipments of LED high bays in 2020, annual energy
savings was 7.8 million kWh.

Annual Energy Savings (kWh) = Σ[(A÷B) ×C] ×12 (hr)×260 (day) ÷1000
A: Rated output power (W) of each Delta LED high bay model.
108

B: The difference of efficiency between Delta LED high bay and UnitedStates Department of Energy’s HID high bay requirements.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.

Appendix7.5 Summary of Information
Assured (ISAE 3000)

No.

9Assured Item

Uninterruptible power
supply system (UPS)
annual energy savingsin 2020

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Information Assured
By comparing the efficiency of Delta uninterruptible power
supply (UPS) to that of EU Code of Code on Energy
Efficiency and Quality of AC Uninterruptible power supply
systems (EU UPS CoC rev.2), for the shipments of themain UPS models*1 in 2020, annual energy savings was
87 million kWh.

Page

11

TV power (TVP) annual
energy savings in 2020

LED driver annual
energy savings in 2020

By comparing the efficiency of Delta LED driver to thatof EU eco-design requirements for light sources andseparate control gears*1, for the shipments of the Delta
OBM and 1 EU major customer in 2020, annual energy
savings was 34 million kWh.
*1: laying down eco-design requirements for light sources andseparate control gears pursuant to Directive 2009/125/EC of
the European Parliament and of the Council and repealing
Commission Regulations (EC) No 244/2009, (EC) No
245/2009 and (EU) No 1194/2012

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Reporting Criteria

A: Rated output power (W) of each Delta UPS model.
108

B: On charge mode, time-weighted average power loss (W) difference
between Delta UPS product and EU CoC requirements at corresponding
efficiency on different load mode.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.

By comparing the efficiency of Delta Open frame TV
power to that of the minimum energy efficiency requiredby customer’s specifications, for shipments of the 20 mainOpen frame TV power models*1 in 2020, annual energy
savings was 55 million kWh.
10

Corporate
Governance

Annual Energy Savings (kWh) = Σ[(A×B)×C]×24 (hr)×365 (day) ÷1000*1: Main product models and series are the single-phase
UPS models which contains “RT” in the part number, andthe 3-phase UPS models which contains “DH”, “NH”, “HP”,“HH”, “DS” and “DM” in the part number.

*1: Main product models are AP-P242AM A, AP-P242AM B, APP288AM B, AP-P321AM B, AP-P340AM A, AP-P341AM A, APP341AM B, AP-P348AM A, AP-P396AM A, AP-P397AM A, APP397AM-1 A, AP-P410BM A, AP-P410BM B, AP-P412AM-1 A,
AP-P484AM A, AP-P484AM B, AP-P502AM A, AP-P125AM A,
AP-P130AM A, AP-P180AM A. The minimum energy efficiency
requirement of customer specifications for the first seventeen
models mentioned above is 80%, and the minimum energy
efficiency requirement for the last 3 model is 85%.

Communication
with Stakeholders

A: On charge mode, power loss (W) difference between Delta product andthe customers' minimum efficiency specifications.
B: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020.
108

C: Load = load required for the customer's specifications for performance.
D: On no load mode, power loss (W) difference between Delta product andthe customer's minimum efficiency specifications.
* 1: Usage time refers to the result of AMERICAN TIME USE SURVEY.

Annual Energy Savings (kWh)= Σ(A×B×C) ×D×8(hr)×365(day)÷1000
A: Rated output power (W) of each Delta LED driver model108

B: Power loss (W) difference between Delta LED driver and the EU
requirements.
C: Quantities of products of each model are exported from SAP shipment
record from 1/1/2020 to 12/31/2020
D: Percentage of load=100%.

183

7.5 Summary of Information
Assured (ISAE 3000)

No.

Assured Item

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Information Assured

Page

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Reporting Criteria
Main production plants include China (Dongguan, Wujiang, Wuhu,
Chenzhou and Cyntec in Huafeng), Taiwan (Taoyuan Plant 1, Taoyuan
Plant 2, Cyntec in Hsinchu) and DET (plants 1, 5 & 6).

12

Electricity intensity in2020

2020 EI was 66,461 kWh/MUSD for Delta’s main
production plants.

87

Electricity intensity = [Annual electricity usage (kWh)-electricity usage (kWh)of excluded areas] / Production value (million USD).
Annual electricity usage refers to purchased electricity not including selfgenerated solar power.
Global average= average PUE of 4 Delta data centers (Taiwan
Headquarters, Wujiang, DET Plant 5 and American Headquarters)
PUE is calculated with methodology provided by The Green Grid asfollows:

13

Data center powerusage effectivenessin 2020 (Power Usage
Effectiveness, PUE)

PUE= Total Data Center Energy (kWh) /IT Equipment Energy (kWh)IT equipment energy includes the energy associated with all of the IT
equipment (e.g., compute, storage, and network equipment) along with
supplemental equipment (e.g., KVM switches, monitors, and workstations/
laptops used to monitor or otherwise control the data center).
The PUE was 1.32 for Delta's 4 data centers in 2020.

87

Total data center energy includes all IT equipment energy as describedabove plus everything that supports the IT equipment using energy, suchas:
A: Power delivery components, including UPS systems, switchgear,
generators, power distribution units (PDUs), batteries, and distribution
losses external to the IT equipment
B: Cooling system components, such as chillers, cooling towers, pumps,
computer room air handling units (CRAHs), computer room air
conditioning units (CRACs), and direct expansion air handler (DX) units
C: Other miscellaneous component loads, such as data center lighting

184

Appendix7.5 Summary of Information
Assured (ISAE 3000)

No.

14

Assured Item

Electricity savingsof green plants andbuildings in 2020

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Information Assured

Page

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

Reporting Criteria
The 15 green factory/office buildings are the following: Taiwan
Headquarters, Taoyuan Technology Center, Tainan Plant Phase II, Tainan
Plant Phase I, India Rudrapur Plant, India Gurgaon Plant, Shanghai R&D
Center , American Headquarters, Taoyuan Plant 5, Beĳing Office Building,India Mumbai Office, Thailand Plant 5, EMEA Headquarters, Chungli R&D
Center and Japan Ako Energy Park.

In 2020, Delta’s global certified green plants and buildings
collectively saved, in total, 16.82 million kWh of electricity.

91

Electricity savings (kWh) = (EUI in literature cited – Actual EUI of green
buildings) * Floor area of green buildings
EUI = Annual Electricity usage (kWh)/Floor area (m2). Annual electricity
usage refers to purchased electricity not including self-generated solar
power.
Note: Refer to footnotes *1 to *9 on page 92 and 93 for “EUI in literature cited” andfootnote *1 on page 91 for “Actual EUI of green buildings”

The 5 donated green buildings are the following: the Delta Building andthe Y. S. Sun Green Building Research Center at National Cheng Kung
University (NCKU), the Kuo-Ting Optoelectronic Building at National Central
University (NCU), the Delta Building at National Tsing Hua University(NTHU), as well as the Namasia Ming Chuan Elementary School.
15

Electricity savingsof donated green
buildings in 2020

In 2020, Delta’s 5 donated green buildings reduced, in
total, 1.66 million kWh of electricity.

148

Electricity savings (kWh) = (EUI in literature cited – Actual EUI of green
buildings) * Floor area of green buildings
EUI = Annual Electricity usage (kWh)/Floor area (m2). Annual electricity
usage refers to purchased electricity not including self-generated solar
power.
Note: Refer to footnote *1 on page 148 for “Actual EUI of green buildings” andfootnotes *2 to *4 on page 148 for “EUI in literature cited”

16

Water productivity
intensity (WPI) in 2020

2020 Water productivity intensity (WPI) was 463 metric
ton/MUSD for Delta’s main production plants.

97

Main production plants include China (Dongguan, Wujiang, Wuhu,
Chenzhou and Cyntec in Huafeng), Taiwan (Taoyuan Plant I, Taoyuan Plant
II, Cyntec in Hsinchu) and Thailand plant (plants 1, 5 & 6). Statistics areexported from tap water bills.
Water productivity intensity = [ purchased water usage (metric ton)/
Production value (million USD)

185

7.6 TCFD Practices Across theFour Core Elements

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

7.6 TCFD Practices Across the Four Core Elements
Task Force on Climate-related Financial Disclosures (TCFD)
Delta adopts the TCFD structure in disclosing its practice where the four core elements of climate change, i.e. governance, strategy, risk management, and indicators and targets, areconcerned:

I. Governance: Disclose the organization’s climate-related risks and opportunities
Guiding Principles

Board’s supervision overclimate-related risks andopportunities

Specific Practices
The Delta Global ESG Committee (the "ESG Committee") under the Board of Directors is the highest-level supervision unit for climate risk andopportunity within Delta, with Mr. Bruce Cheng, founder and honorary chairman of Delta, as the honorary chairperson and Mr. Yancey Hai,
Chairman of Delta, as the chairperson. The ESG committee is composed of board members including the vice chairman, CEO and COO as well as
CSO and top executives from regional and functional management.
Most members of the Board of Directors have been paying attention to climate change and have a full understanding of the significance and effects
of climate change. When considering major investment resolutions, including the construction of green buildings, solar energy plants, and green
energy investment, the Board of Directors is able to take climate change issues into consideration.
Climate change covers a wide range of topics and impacts, with each responsible unit at Delta playing different roles. They can facilitate theimplementation of measures through communication and exchange of information at quarterly ESG Committee meetings.

Management’s role inassessing and managing
climate-related risks andopportunities

The Corporate Sustainability Development Office under the ESG Committee is responsible for monitoring international climate change trends,
coordinating projects related to climate change, compiling relevant data indicators, establishing an operational framework, organizing educationand training on climate change, inviting heads of different functions and business groups to keep the management abreast of climate-related
issues. The business group is responsible for the research and development of a variety of energy-saving related products and solutions, and iscommitted to improving the energy efficiency of its products and developing products and services that contribute to the mitigation and adaptationof climate change. The Energy Conservation Service Department is responsible for providing comprehensive energy efficiency improvement
services to enhance the energy efficiency of utilities, data centers, buildings, and factories.
The CSO reports to the Board of Directors on trends relating to climate change on a quarterly basis, as well as Delta’s climate management
progress, including important trends, key data, disclosure effectiveness, external assessment results, and the overall performance of energy andcarbon reduction.
To facilitate effective operation of key issues, energy conservation and products are managed by the Energy Management Committee and strategic
development meetings. The Energy Management Committee under the Delta Global ESG Committee holds meetings quarterly and is responsible
for promoting energy conservation at Delta’s global factories, green buildings, and server rooms, as well as the introduction of global renewableenergy. The strategic development meeting is held annually, in which the business and functional groups report important trends, set strategic
direction of the business groups and targets for Delta. The above meetings are led by the management team with Board members participating.

186

7.6 TCFD Practices Across theFour Core Elements

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

II. Strategy: Immediate and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning
Guiding Principles

Specific Practices• With reference to its internal carbon reduction targets, Delta has defined the short-term as three years, the mid-term as three to five years, andthe long-term as more than five years.
• Short-, medium-, and long-term risks:- Short-term: Carbon taxes and related taxes, uncertainty surrounding regulation and policies, increased cost of raw materials, voluntaryagreements, renewable energy regulation.
- Medium-term: Shifts in consumer preferences to low-carbon products, customers change supplier selection criteria, requirements for decreasing
greenhouse indirect emissions from water and wastewater reduction, increased severity of extreme weather events such as
cyclones and floods, costs to transition to lower emissions technology, mandates on and regulation of existing products andservices, rising mean temperatures, international sector agreements, changes in precipitation patterns and extreme variability inweather patterns, customers’ changing product specification requirements.

Short-, medium-, and longterm climate-related risks andopportunities identified- Long-term: Substitution of existing products and services with lower emissions options, rising sea levels, emission reduction requirements to
suppliers.
• Short-, medium-, and long-term opportunities:- Short-term: Adoption of more efficient production and distribution processes, recycle and reuse, more energy-efficient buildings, use of lowemission energy, supportive policy incentives, use of new technologies, participation in carbon trading markets, the movement
towards decentralized energy production, development or expansion of low-carbon products and services, development of climate
adaptation and insurance solutions, diverse management, responses to the changes in consumer preferences, and new market
partnerships.
- Medium-term: Participation in renewable energy projects and energy efficiency enhancement.
- Long-term: Reduction in the use of water resources, R&D and innovation of new products and services, and resource substitution anddiversification.

Climate-related risks andopportunities having significant
impact on the organization’s
businesses, strategy, andfinancial planning

Potential impacts from different
climate-related scenarios on
the organization’s business,strategy and financial planning

Delta’s identified climate risks and opportunities range from products and services, supply chains, adaptation and mitigation activities, R&D,
investment, operations to other relevant aspects, and the probability of occurrence and degree of impact for each assessed risk and opportunity.
In 2018, Delta introduced the trial project, which further analyzes the impact caused by operating costs and revenues, capital expenditures, anddistributions to understand the financial impact on its business and develop responding strategies.
Based on the International Energy Agency's (IEA) 2017 scenario for the global temperature increase within 2°C, Delta estimated its commitment
to reducing carbon emissions and established the 2025 Science-Based Targets (SBT) with the year of 2014 as the benchmark. The targets werealready approved by the Science-Based Target Initiative (SBTi) in 2017.
Currently, Delta has fulfilled its objective for three consecutive years. Delta has also actively introduced the Task Force on Climate-related Financial
Disclosures (TCFD) to assess the risks and opportunities arising from climate change.
Delta uses NDC and Beyond 2°C to simulate business opportunities for energy storage-related products under different climates.

187

About the
ESG Report

7.6 TCFD Practices Across theFour Core Elements

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

III. Risk management: Process used by the organization to identify, assess, and manage climate-related risks
Guiding Principles

Organization’s processes
for identifying and assessing
climate-related risks.

Organization’s processes for
managing climate-related risks

How to integrate theprocesses of climate-related
risk identification, assessment,
and management into theoverall risk management

188

Specific Practices• The Board of Directors has instructed the ESG Committee to manage and monitor climate-related issues. Based on the climate change research
report, risk assessment report, stakeholders’ voices, and with reference to ESG issues, the ESG Committee has identified transformation risks
and physical risks according to the proposed risk structure, analyzed the impact arising from policies and regulations, technology, markets,
corporate reputation, and extreme and chronic climate events.
• Delta conducts a major survey every three years and re-assesses the results annually to confirm the reasonableness and ensure that theresults are in line with current circumstances. Delta selects high-risk projects and matches them with corresponding opportunities based on theirshort-term, medium-term and long-term goals, as well as possibility and impact. At the same time, to evaluate the feasibility of quantification,
quantitative feasibility has been added to the third aspect since 2020.
• If the overall score of a climate risk event falls in the high attention category, an approach based on “mitigation” and “adaptation” will be adopted.
1. Mitigation: To actively promote the construction of renewable energy, energy conservation, green buildings, and increase energy efficiency to
reduce Delta’s dependence on energy.
2. Adaptation: To develop renewable and other alternative clean energy, formulate corporate sustainable operation plans related to climate risks,
and analyze and seize on impacts arising from climate change to come up with corresponding strategies, as well as provide customers withintegrated solutions and assist them in adapting to climate change.

• Climate change is one of the official issues of the Delta Group’s risk management and is included in the overall risk management. Due to thespecial nature of climate change, the Board of Directors has also delegated the ESG Committee to be responsible for identifying and managing
climate risks and opportunities and implementing corresponding measures and solutions.

7.6 TCFD Practices Across theFour Core Elements

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

IV. Indicator and targets: Indicators and targets used by the organization to assess and manage climate-related risks and opportunities
Guiding Principles

Specific Practices

Indicators used by theorganization to assessclimate-related risks andopportunities in line with its
strategy and risk management
process• As of 2020, the indicators adopted by Delta for assessing climate-related risks include science-based carbon reduction achievements, Energy
Intensity (EI) of factories, Energy Use Intensity (EUI) of R&D/office buildings, Power Usage Effectiveness (PUE) of data centers, the overall EI(factories, R&D/office buildings, and data centers), waste intensity, and water productivity intensity.

Disclose Scope 1, Scope 2,
and Scope 3 GHG emissions,and related risks.

• At the beginning of 2021, Delta committed to reaching 100% renewable energy usage by 2030. Since then, the percentage of renewable energy
usage has become a new indicator. Delta will implement measures in relation to energy conservation and transformation of renewable energy
with its internal carbon pricing system.
• According to the GHG Protocol, Delta has conducted greenhouse gas inventories of direct emissions (Scope 1) and indirect emissions (Scope 2)
and verified the amount based on the ISO 14064-1 greenhouse gases inventory standards.
• With reference to GHG Protocol Scope 3, Delta conducts GHG inventories of Scope 3, which include purchased goods and services, businesstravel, use of sales products, upstream and downstream transportation and distribution, and waste management, and obtains the ISO 140641 GHG verification report. The results of previous annual inventories are published in the chapter titled “Devoted to environment protection andenergy conservation,” in the Delta Electronics ESG Report.

189

7.7 External AssuranceStatement and Report

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

7.7 External Assurance Statement and Report
SGS Assurance Statement – GRI Standards & AA1000

190

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix7.7 External AssuranceStatement and Report

About theESG Report

A Word from
the Management

Overview

Sustainable
Management

Communication
with Stakeholders

Corporate
Governance

Environmental
Protection andEnergy Savings

Employee Relations
and Social
Engagement

Appendix

ISAE 3000 Limited Assurance Report191