CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

1

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Go Beyond CSR,
Create Shared Values

2

2

CONTENTS

Foreword
About the Report

04

Letter from the Chairman

05

Letter from the CSO

06

Awards & Recognition

07

CSR EPS 2025 Goals

08

1

Business Operation

1.1 Company Proﬁle11

1.2 Economic Performance15

1.2.1 Financial Performance15

1.2.2 Tax Governance17

1.3 Governance Organization

18

1.3.1 Board of Directors

19

1.3.2 Audit Committee

22

1.3.3 Corporate GovernanceCommittee

22

1.3.4 Remuneration Committee

23

1.3.5 Sustainability and ERM
Committee

24

Sustainable
Management

2.1 Sustainability Governance43

2.2 Stakeholder Management44

2.2.1 Stakeholder Cultivation

44

2.2.2 Material Topic Analysis

47

33
33

122
125

2.3.2 Customer Service

60

130

2.4 Responsible Supply Chain

63

4.3 Talent Development

130

2.4.1 Management Strategy

63

4.3.1 AUO University

64

4.3.2 Performance Management& Career Development

135

2.4.2 Management Process
2.4.3 Low-carbon Supply Chain

68

3

Environmental
Sustainability

3.1 Climate Action

72

4.4 Health & Safety

137

4.4.1 Health Care

137

4.4.2 Safe Workplace139

4.5 Social Engagement142

4.5.1 AUO Foundation

142

4.5.2 Charity Care

143

3.1.1 Governance & Strategy

72

4.5.3 Green Living

144

3.1.2 Climate Risk Management

74

146

3.1.3 Metrics & Targets

79

4.5.4 Popular Science &Environment Education
4.5.5 Cultural Preservation

148

3.2 Carbon & Energy

80

3.2.1 Inventory & Mitigation

80

3.2.2 Improve Energy Efﬁciency

85

3.2.3 Use of Renewable Energy

90

3.3 Water Resource Management92

3.3.1 Target & Performance92

3.3.2 Management Framework

93

97

1.5.3 Information Security &Privacy Protection

119

4.2.2 Diversity & Inclusion

127

3.4 Circular & Clean Production

1.5.2 Risk Response Cases

4.2.1 Talent Distribution

4.2.4 Happy Workplaces

25

29

119

4.2.3 Remuneration & Beneﬁts

1.4.1 Integrity Culture

1.5.1 Risk Evaluation &Management

4.2 Talent Attraction &Development

57

95

29

114

2.3.1 Product Quality

3.3.3 Reﬁnement Projects

1.5 Risk Governance

4.1 Human Rights Protection

57

25
28

Inclusive Growth

2.3 Customer Relations

1.4 Business Integrity
1.4.2 Regulation Compliance

45Agile Innovation

178

Fact Sheet
Appendix
Response to Material News in 2023

198

GRI Index

199

SASB Index

204

TWSE Sustainability Disclosure Index –Optoelectronics Industry

206

TWSE-listed & OTC-listed companies'
Climate Information

207

ISO 26000 Comparison Table

210

UN Global Compact Comparison Table

211
213

5.1.1 Intellectual Property

152

215

5.1.2 Intelligent Life

154

SASB Assurance Statement216

5.1.3 Sustainable Products

156

5.2 Smart Manufacturing

158

5.3 Affordable & Clean Energy

160
160

3.4.3 Air Pollution Management102

5.3.2 High-Quality Solutions

161

3.4.4 Reuse of Waste

103

5.3.3 Green Energy
Compatibility & Inclusion

162

107

176

AUO Digitech

ISAE 3000 Assurance Statement

5.3.1 Energy Business
Development

104

AUO Envirotech

212

101

3.5.2 Plastic Neutrality

174

ISO 14064 Veriﬁcation Statement

3.4.2 Wastewater Management

3.5.1 Vision & Progress

165

AUO Display Plus

2022 Sustainability Report Corrigenda

97

104

AUO Crystal

152

5.1 Innovative R&D

3.4.1 Circular Economy
Performace

3.5 Biodiversity

SubsidiaryAbout the Report

Information Credibility

The Journey of Sustainability Reporting
AUO began publishing its Environmental Brochure in 2004, and theEnvironmental, Health, and Safety Report in 2005. The CSR Report has
been published on an annual basis since 2006. The report provides asystematic compilation of AUO's goals and accomplishments in the corporate
governance, environmental and social aspects. To provide a complete
disclosure of AUO's sustainability accomplishments and the outcomesof stakeholder communication, the third edition of the Global Reporting
Initiative - Sustainability Reporting Guidelines (GRI-G3) was adopted in 2007
as the basis for our CSR report structure, followed by the adoption of the GRI
Standards in its entirely in 2017. The sustainability report is now preparedin accordance with the GRI Standards, and the Sustainability AccountingStandards Board (SASB) Index (Hardware). This report is the 18th sustainability
report by AUO.

Internal audit
AUO follows the “Procedures for Preparation and Reporting of Sustainability Reports by TWSE Listed
Companies” to establish the preparation and veriﬁcation procedures for sustainability reports, incorporatingthem into the company's internal control system. The content of this report has been reviewed by
the relevant department heads, Sustainability and Enterprise Risk Management Committee and theimplementation of the preparation and veriﬁcation process will be audited by the audit unit.
External assurance & veriﬁcation

All of the data in the report were veriﬁed by an independent third party and presented using internationallyaccepted indicators. Estimation is indicated in their corresponding sections.

Reporting Standards and Guidelines
Important economic, environmental, and social issues f rom around theworld were collected by AUO, and materiality analysis was applied to identify
topics that were of concern to stakeholders. In 2023 Q3, all the relevant
departments were invited to discuss and identify the issues of importance.
The implementation results for each issue are presented in this report. This
report discloses the Company's performance and management guidelines forthese issues in accordance with the GRI Standards revised in 2021, SASB index(Hardware), and Taiwan Stock Exchange “Corporation Rules Governing the
Preparation and Filing of Sustainability Reports by TWSE Listed Companies”.

Scope of the Report
This report reveals data related to the sustainability performance of AUO fromJanuary 1, 2023, to December 31, 2023 (aligned with the financial reporting
period) at its global ofﬁces and fabs. The scope includes the parent company
and subsidiaries in Taiwan, Mainland China, other parts of Asia, America, andmajor operational and production bases in Europe, as well as the inclusion ofimportant information about our subsidiary, AUO Crystal. Additionally, it also
covers the sustainable outcomes of our subsidiaries, AUO Display Plus, AUO
Envirotech and AUO Digitech. Highlights of some innovative products fromits subsidiaries, including Space4m., AUO Health, AUO Care, are also included.
The revenue of the parent company and subsidiaries covered by this range
accounted for 87% of the AUO group's revenue in 2023.

Financial data was audited by KPMG
ISO 14064 GHG emissions were veriﬁed by DNV
ISO 14001, ISO 45001 and ISO 50001 management system certiﬁcations were veriﬁed by SGS Taiwan
GRI and SASB were assured by KPMG

Report Publication

Contact Us

The Sustainability Report is publishedannually by AUO.

Please do not hesitate to contact us if you have any suggestionsor questions. Our contact information is provided below. You may” on our homepage to reach us.
also click on “Contact AUO

Current version: Issued in June, 2024
Previous version: Issued in June, 2023
Next version: To be issued in June, 2025

Address: No.1, Li-Hsin Road 2, Hsinchu Science Park,
Hsinchu City 300, Taiwan
Telephone: +886-3-500-8800
Email：CSR@auo.com

AUO's ESG website: csr.auo.com/en

Cover Design

Using the side prof ile of a character silhouette as an outline, blending different color blocks andribbon elements in a diverse ﬁeld. It is like AUO, embodying a people-oriented approach, continuously
innovating and breaking through, committed to providing smart life innovation solutions and services toenhance people's quality of life and experience.

Message From Our Chairman
Dear valued partners who are concerned about the sustainability of AUO:
In 2023, the year marked as the hottest in human history and a time of extreme uncertainty in global politics and economics. Intensifying
extreme weather events, geopolitical tensions and regional conﬂicts, soaring costs of energy and raw materials, and high inﬂation havedisrupted the existing structures and order worldwide. As heightened uncertainty becomes the new norm of global operations, only
enterprises with operational resilience can withstand the challenges and ensure enduring success.
As global temperatures soar to historic heights, it is imperative for the entire world to unite in combating climate change. AUO attended
the UN COP28 for the ﬁrst time in 2023 and represented the Taiwanese ICT industry in introducing a comprehensive green solution on
the global stage. Our demonstration of the efforts of Taiwanese industries to promptly contribute to global climate mitigation garneredsigniﬁcant interest from developing nations. We also made the decision to accelerate our carbon reduction initiatives to move closer tothe goals of net zero. In terms of product development, we are continually enhancing our use of recycled materials and energy-efﬁcienttechnologies; on the manufacturing side, we are leveraging AI technology to optimize energy and water usage in production processes,
thereby reducing waste generation. Furthermore, AUO will continue to take proactive action on biodiversity and plastics as well.
The global economy has been slow to recover after the pandemic. AUO is taking a cautious approach to the business pressures causedby the extended slump in the industry. We are strengthening our ﬁnancial health and focusing on a biaxial transformation strategy basedaround “Go Premium” utilizing value-adding display technologies and “Go Vertical” expanding display applications for diverse ﬁelds. Our
goal is to not only create a second growth engine but also enhance market recognition that “AUO is not just a panel maker.”
The AUO biaxial transformation strategy has built up a number of successes over the past few years. In 2023, the three areas that we
focused on were next-generation display technologies, automotive service solutions, and vertical applications. In terms of display
technology, MicroLED technology is now approaching commercialization and mass production after more than a decade of development.
We are moving quickly to integrate this technology into automotive, large size, splicing and transparent display applications.
On the automotive sector, AUO is taking advantage of the electric and autonomous vehicle trends by establishing ourselves in the smart
cockpit and smart mobility service markets. Our acquisition of BHTC has positioned AUO as a Tier-1 supplier, enhancing our proximity tomarkets and expanding our global presence in the automotive supply chain. For vertical applications, we are investing our resources inretail, health, enterprise, education, smart service and green energy. Annual revenue growth has now reached nearly 20%. AUO products
and services are also creating a better experience for people. Integration of onboard software and hardware, for example, provides a safer
and more user-friendly driver/passenger experience. In health sector, streamlining of treatment processes benefits both doctors andpatients. In retail, we are helping customers manage their global operating locations more effectively. We are promoting growth with our
stakeholders.
AUO has always made sustainability a key part of our business strategy. Our ESG initiatives were recognized with an A grade by the
MSCI ESG Ratings, ranking us in the top 5% in the TWSE Corporate Governance Evaluation. We have received numerous domestic andinternational awards as well. We are grateful for the support and endorsement from all our stakeholders. Looking ahead, we are committed
to leveraging the strengths and capabilities of the AUO Group to solidify our position as solutions provider. We will also continue to workwith our ecosystem partners to strengthen our positive inﬂuence on the environment and society.

Chairman & Group CSO

Message From Our CSO
Signiﬁcant advancements were achieved in the ﬁeld of ESG in 2023. Regulatory bodies introduced new sustainability guidelines, emphasizing thesigniﬁcance of transparent ESG disclosures. The release of the TNFD framework and upcoming TIFD sparked increased interest in topics such as
biodiversity and human rights. A series of extreme weather events served as a wake-up call, highlighting the urgency of taking proactive measuresin addressing global climate change.
AUO actively engaged with international trends and self-examination. Shared below are the outcomes of AUO efforts and we look forward tomaintaining continuous growth and shared prosperity with our external partners.

Q. The purpose and implications of including Group companies in this Report for the ﬁrst time
International regulators have set requirements regarding the rigor and scope of sustainability information. AUO used our internal controls anddigital systems as the basis to thoroughly review the sustainability information we release. As the AUO Group expands globally and diversifies
our subsidiaries, the complexity and demands of disclosing sustainability data have increased. This year, products and services with sustainability
implications from subsidiaries (AUO Crystal, AUO Display Plus, AUO Envirotech, AUO Digitech) were therefore presented in a special chapter for theﬁrst time. In anticipation of the forthcoming IFRS S1 (Note 1), our reporting efforts will continue to expand gradually over the coming years.

Q. Scope 3 is now a key challenge and how is supply chain management being implemented at AUO
AUO has been working with our value chain to address climate change for a long time. We have set a goal to reduce carbon emissions fromour suppliers by 20% by 2030, and we are working towards achieving this target gradually. We have implemented carbon inventory and energy
management systems at over 60 key suppliers. Additionally, we use the ESG Scorecard to encourage suppliers to examine and enhance theirpractices. In 2023, we participated in the Large Leads Small Program (Note) to share AUO's valuable experience in green manufacturing with
suppliers and assist them in adopting digital energy-efﬁciency and carbon management tools and platform. We also continuously cooperated inprojects focused on recycled materials, power-efﬁciency, water-efﬁciency and waste reduction to foster sustainable competitiveness in our supply
chain during the shift towards a low-carbon economy.
Note: Ministry of Economic Affairs Low-carbon Program for Large Leads Small

Q. AUO was the ﬁrst in the industry to commit to plastic neutrality. How is this being promoted and implemented
AUO has designated 2023 as our “Year Zero” for reducing plastic use, in response to the harmful environmental impact of plastic waste. We haveadopted a comprehensive approach known as the “3R+1” strategy (Replace, Reduce, Recycle, Rethink). Our efforts to address plastic use in bothproduction processes and employee behaviors are already yielding positive results: 96% of plastic packaging is now recycled and 80% of waste
plastic is now recycled as well. Additionally, we have successfully reduced the amount of plastic, such as PET bottles, used in our workplace. The
introduction of plastic taxes in each country and upcoming release of the “Global Plastics Treaty” all reinforce the importance of ﬁnding a solution toplastics pollution and show that we are on the right path.

Q2. COP28 accelerated the global low-carbon transition. What actions has AUO taken
AUO’s strategy aligns with the global consensus - enhancing energy efﬁciency and expanding renewable energy. To enhance energy efﬁciency, we
are investing in low-power production processes and smart manufacturing technologies. We achieved an energy saving rate of 3.3% in 2023 setting
a new record. We also launched the more ambitious Energy Efﬁciency 3030 Project, with a goal of a reducing energy consumption by 30% by 2030
(2021 as baseline year). For renewable energy, AUO set up the cross-functional Green Electricity Procurement Team to manage all related operations.
Our focus is currently on self-generated solar power and will purchase of offshore wind power. In 2023, we used nearly 1 billion kWh of green
electricity and achieved RE 2.2. Climate action is a campaign on all fronts. We are committed to promote green solutions that support industries intransitioning to low-carbon practices and enhancing green competitiveness.

Q. Protection of human rights has moved beyond slogans to responsibility. How is AUO fostering diversity and inclusiveness
AUO has developed a human rights policy in alignment with international conventions. We also carry out human rights due diligence on not only
AUO employees but also supply chains and local communities. We are constantly improving our mitigation and compensation measures for majorrisks. Additionally, we are proactive in sharing our management practices with the public

CSO

SocietyAwards & Recognition

Asia Responsible Enterprise Awards - Investment in People
Taiwan Corporate Sustainability Awards - Workplace
Welfare Award

Governance

Health Promotion Administration Ministry of Health andWelfare - Outstanding Healthy Workplace

Manufacturing Leadership Awards

Global Human Resources Think Tank - Best HR Practices
Award (Kunshan site)

Clarivate Top 100 Global Innovators
Ranked among the top 5% in the TWSE corporate
governance evaluation
CommonWealth Sustainable Citizen Award
Taiwan Corporate Sustainability Awards Taiwan Top100 Company, Supply Chain
Leadership Award

Suzhou Industrial Park's Most Socially Responsible
Enterprise (Suzhou site)

Environment

Innovation

Executive Yuan National Corporate Environmental Award - Honor
Environmental Enterprise Award & Gold Award
Ministry of Economic Affairs Energy Saving Leadership Award - Gold Award
Ministry of Environment Excellent Recycling Performance Awarded - GoldAward
Ministry of Environment Green Chemistry Application and Innovation Award
Taiwan Circular Economy Award - Outstanding Product Award
Taiwan Corporate Sustainability Awards - Climate Leadership Award, Water
Resource Management Leadership Award, Circular Economy LeadershipAward
Taipei Computer Association Data Innovation Application Competition Gold Medal
Business Weekly Top 100 Carbon Competitive Companies
Top 10 Green Companies in Xiamen
Kunshan Zero Carbon Factory Evaluation

SDIA Futuristic Display Award Gold Prize & Silver Prize
Ministry of Economic Affairs Taiwan
Excellence Awards - 5 Grand Awards
Industrial Development Administration
Ministry of Economic Affairs RobotIntelligent System Quality Award
Central Taiwan Science Park Excellent
Manufacturer Innovation Product Award
Global Corporate Sustainability Award Best Practice (Smart manufacturing)First prize of the ﬁrst Yangtze River Delta
5G+ Industrial Internet Competition(Suzhou Factory)

Included in the 2024
S&P Global Sustainability
Yearbook

MSCI ESG Leaders
Indexes
MSCI ESG Rating A

Included in the Bloomberg Gender
Equality Index for
6 consecutive years

CDP Climate Change ACDP Water Security B

ISS ESG Rating Prime Status

EcoVadis Sustainability
Rating - Silver

FTSE4Good
Emerging Index

Greater China Business
Sustainable Index Rating
AchieverNote: As of the ﬁrst quarter of 2024.

Material Issue

Annual achievement rate of the CSR EPS Goals

CSR EPS 2025 Goals
Aligning with the United Nations Sustainable Development Goals (SDGs), AUO established 3 major axes for sustainable development - Environment, People, Society (EPS) in 2018. From these, 10 speciﬁc
directions were derived, with medium to long-term goals set for 2025. Annual targets are set for each of the 10 directions. In 2023, 9 out of the 10 targets were achieved, reaching a success rate of 90% (Note).
Note: The unmet target is "Smart Manufacturing" Due to a decline in production capacity demand, the manpower input could not be immediately adjusted, resulting in a decrease in per capita productivity
efﬁciency and failure to meet the target. AUO has already set an improvement plan for this target, including promoting smart manufacturing and optimizing management processes, and accelerating talenttransformation, etc., to enhance production efﬁciency.

PeopleQuality
Education

Promoting popular science education, employeecompetency, and industry-university collaboration
with 500,000 participants
Accumulated creation of

Cumulative
achievement rate: 85%

Inclusive
Growth60,000 job opportunities

Cumulative
achievement rate: 98%

Enjoyable
Work Place

84% of employees identify with the company

Achieved for 3
consecutive years

Society
Affordable and The total installed capacity of renewable energy
Cumulative
has reached 2,661 KW
Clean Energy
Achievement Rate 89%

Environment
EnergyOptimization

Accumulated reduction of 10.05 million
metric tonnes of carbon emissions

Cumulative achievement
rate: over 100%

Water
Optimization

Accumulated water savings of

Cumulative achievement
rate: over 100%

Circular
Production

AUO generated economic beneﬁts of

NTD 4.83 billion

Cumulative
achievement rate: 84%

Climate
Adaptation

A total of 27 projects

Continue to manage
the ﬁnancial risks

230,000 CMD

Note: Cumulative numbers are based on 2018 and are accrued to 2023.
Target implication

Energy Optimization: Set reduction targets based on life-cycle and reduce carbon
emissions by up to 6.5 million tones CO2e cumulatively.
Water Optimization: Work with the value chain to combat the threat of water
resource shortages and conserve up to 100,000 CMD in tap water cumulatively.
Circular Production: Spearhead the development of the circular value chain, expand
its economic performance and achieve a growth rate of 135%.
Climate Adaptation: Increase the resilience of climate adaptation and continue toreduce the risk of ﬁnancial impact from climate change issues.

Smart
Manufacturing

AUO Won the “Manufacturing in 2030 Award”
of the year recognized by MLA

Cumulative
achievement rate: 84%

Intelligent Life

cumulative total of 951 million people. achievement rate: 95%

Diversiﬁed display products have reached a

Cumulative

Quality Education: Provide diversiﬁed educational opportunities to more than 600,000 people
and increase employee participation in AUO quality education by 20% each year.
Inclusive Growth: Support the disadvantaged and ally with industry chain partners to growinclusive employment and learning opportunities more than eight-fold.
Happy Workplaces: Become the preferred enterprise and reach 80% in employee identiﬁcation
with the four dimensions in Primary demand, Management support, Team work and Learningand growth.(The scope of the approval survey is indirect employees)● Affordable and Clean Energy: Improve capability in renewable technology, expand the installedcapacity of renewable energy around the world and double the cumulative growth rate. (100%cumulative growth)● Smart Manufacturing: Boost industry competitiveness and overall performance by 50%
through intelligent manufacturing and technology integration.
● Intelligent Life: Development products and integrated services to expand the cumulative reachof education, health, ﬁnance, shopping, lifestyle, transport, and other smart city applications to
a one billion people.

1

Business Operation

1.1 Company Proﬁle

1.3 Governance Organization 1.4 Business Integrity

1.2 Economic Performance

1.3.1 Board of Directors

1.4.1 Integrity Culture

1.3.2 Audit Committee

1.4.2 Regulation Compliance1.2.1 Financial Performance

1.3.3 Corporate Governance Committee

1.2.2 Tax Governance1.3.4 Remuneration Committee

1.5 Risk Governance1.3.5 Sustainability and ERM Committee

1.5.1 Risk Identiﬁcation and Management
1.5.2 Examples of Risk Response
1.5.3 Information Security and Privacy Protection

Material Topics

Annual Highlights◆ Operation risk

The biaxial transformation has graduallydemonstrated its success.

The proportion of independent director

Implementing integrity task management.

The revenue scale from the verticalﬁeld business accounted for 17% of
the total consolidated revenue.

positions accounts for 50% of the total seats.

100% completion of job rotation andbusiness replacement.

The “ESG and Climate Committee” hasbeen elevated to the “Sustainability

Establish a process for productproject information security risk
assessment,

and ERM Committee”,

operating directly under the
Board of Directors.

The proportion of female directors is 37%.

and conduct drills to enhance cyber security
defense and response capabilities, overseeing
the cybersecurity risks of the product.

Passing the third-party
assessment of the international
automotive information security
standard TISAX AL3 (Note),ensures the information security
management of automotive products.

Note: Highly protective level of Trusted Information Security Assessment Exchange.

Our Vision
Playing a key role in achieving the human race’s vision for the future
Display Everywhere. The display panel is a transformative communication interface between human beings and information, empowering people to visualize their desired future. AUO strives to play a
key role in achieving the human race’s vision for the future, and continues to bring innovative solutions and advance towards a sustainable and better future.

Target and ProgressMaterial Topic

Annual achievement rateof the CSR EPS Goals

Review of the linkage
between the board
oversight mechanism andsustainable performance
incorporated into theannual goal review of the
remuneration committee

Major information security
incidents affecting
operations

Maturity of information
security

Achieved

2023
Target100%

Once ayear

0 case>85 points

Material Topic
Increase the annual participation
rate for activities and courses
related to the enhancement of risk
culture2024
Target2025
TargetResponses

AUO's CSR EPS 2025 goal has three major axes (Environmental Sustainability, Inclusive
Growth, and Agile Innovation) and extends to 10 targets, which are supervised andimplemented by the board of directors. In 2023, 9 out of the 10 goals were achieved,
resulting in a completion rate of 90%.

100%

100%

Foreword CSR EPS 2025
Goals

AUO has a long-term incentive plan for senior managers, which is set by the
Remuneration Committee based on the company's long-term strategy, ﬁnancial and
ESG performance indicators. The performance evaluation period is 3 years, with stockbased rewards accounting for more than 50%. Additionally, there is a clawback clause,strengthening the link with shareholders' interests and fulﬁlling the commitment tosustainable operations.

Once ayear

Once ayear

1.3.4
Remuneration
Committee-

1.5.3
Information
Security& Privacy
Protection

-

1.5.3
Information
Security& Privacy
Protection

2023 Our actions

performance:
90%

performance:
1

performance:
0 caseperformance:
90.7 points

Not Achieved

AUO's information security platform has a reporting mechanism. Employees canreport discovered or encountered incidents through an online mechanism. The
information security execution team processes incidents based on their category
and level after receiving a report. In 2023, there were no major information security
incidents affecting operations.
AUO turned the implementation of each department's information security measures
into visible maturity scores. These scores are provided monthly to the information
security committee and each department head as a basis for improving information
security management.

0 case>85 points

2023 Our actions

2024 Target

2025 Target

2026 Target

This is a newly established goal, the results of which will be disclosed in the 2024
AUO Sustainability Report.

90%

91%

92%

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

1.1 Company ProﬁleAbout AUO

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AUO Corporate
image video

Company NameAUO Corporation

Founded inAugust 12,1996

Number of employees
Main products andservices
ChairmanCEO
Headquarter

36,745
TFT- LCD, Low-temperature polycrystalline silicon (LTPS), Micro LED,
Solar Energy, Sensor, Smart Manufacturing
Shuang-Lang (Paul) Peng

Frank Ko

No. 1, Li-Hsin Road 2, Hsinchu Science Park, Hsinchu, Taiwan, R.O.C.

Market Valueas of Dec 31 2023

USD 4.51 billion

Shares Issued
as of Dec 31 2023

7,699,396,092

3,706.9

Revenue
NTD 100million

2,709.6

2020

2021

2,467.9

2,479.6

2022

2023

11

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report12

Tap Into The Possibilities
AUO was established in 1996, driven by technology and innovation, with display technology at its core, providing products and solutions services with advanced technology. In recent years, AUO has
continued to enhance the added value of display technology (Go Premium) and deepen the application of vertical markets (Go Vertical) through a biaxial transformation. With our "One AUO" strategy,
it consolidates the group's strength, expands the international market through a single brand, and embraces the inﬁnite possibilities of the future through the synergy of the group. It actively expands
various new business areas, covering hardware, software, cloud service platforms, and solutions, etc. Not only does it provide high-quality products and extends the value chain of the ecosystem, but it
also transforms the group's experience into exportable knowledge and strategic solutions, allowing the outside world to re-recognize AUO is "not just a panel maker."Innovative Display Technologies
AUO has demonstrated outstanding innovative capability based on its profound display R&D and manufacturing experience. For example, 8K ultra-high resolution, ultra-high refresh rate products
have been adopted and mass-produced by major brand customers. We are also committed to developing advanced display technologies, such as Micro LED, AmLED, ﬁngerprint scanning and A.R.T.
technologies, showing innovation strengths across diverse verticals.

Micro LED

Fine Pitch LED

AmLED

Ultra High Resolution

High Frame Rate

Super Narrow Bezel

Free-Form & Curve

Sensing Technology

Touch Solutions

Eye Care Technology

Switchable Privacy

Lamination

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

13

Display Everywhere
In the age of digital transformation, regarding display as a vital interface of communication and connection. AUO integrate software, hardware, cloud and service platforms with the core of profounddisplay technology to enter the diverse application market of f ield economy such as smart retail, smart healthcare, smart mobility, smart education, enterprise and entertainment, and smart
manufacturing, leading people into a brand new smart lifestyle.

Mobility

RetailHealthcare

EnergyWith display technology as our core focus,
we integrate and develop “AIoV Connected
Ve h i cl e ” d i s p l ay a p p l i c a t i o n s o l u t i o n s ,including smart cockpits, ﬂeet management,
and passenger information systems, offering
integrated display interfaces and mobility
service solutions.

Integrating AI and hardware/software application
services to meet diverse f ield demands, we
provide in-store WOW! CMS solutions andautomation services, creating personalizedc o n s u m e r ex p e r i e n c e s and enhancing
omnichannel sales competitiveness.

In response to healthcare digitalization, withdisplay/sensing technology as our core, weoffer reliable, precise, and eff icient medical
products and solutions for various medicalf ields, adding value to the development ofsmart healthcare.

From supplying high-quality modules andcombining architectural design applications,to power plant investment, construction,and operation & maintenance, AUO provides
comprehensive solutions for energy
generation, storage, and management.

Education and EnterpriseIntelligent Service

Display

Solar and Semicon Materials

By integrating hardware, software, andcloud technology, we connect diverse smart
living environments covering enterprises,
education. We provide one-stop integrated
services, and create environments that inspire
creativity and foster high collaboration.

For manufacturing and healthcare industries,
we utilize big data and AI technology tocreate highly flexible and digitized models,
driving industry acceleration towards digitalt ra n s fo rm a t i o n a n d s u s t a i n a b l e s m a r t
manufacturing.

Based on profound experience in panel R&D
and manufacturing, and commitment todeveloping advanced display technologies, we
provide diverse application display solutions
and system integration services, leading to
breakthrough innovations in human-machineinteraction interfaces.

Po s s e s s i n g h i g h - q u a l i ty s i n g l e c r y s t a lsilicon wafer manufacturing technology, we
collaborate with international companies
to research and manufacture solar andsemiconductor materials and processing
services, offering customized solutions forsilicon-based materials.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

14

AUO Around the Globe
In addition to the headquarters in Taiwan, we have display manufacturing sites in China, Singapore and Slovakia, and overseas business ofﬁces around the globe to provide timely customer support.

LinkouNETHERLANDS

CHINA

Amsterdam

Kunshan

SOUTH KOREAUSASLOVAKIA
Trencin

Xiamen

Tokyo
Osaka

Houli
Taichung

GERMANY
Irvine, CA

Boeblingen

TAIWAN

Austin, TX

VietnamSingapore

Hanoi

Kaohsiung

Business

HsinchuJAPAN

Shenzhen

New York City

Bay Area, CA

LongkeSeoul

SuzhouFarmington, MI

LongtanManufacturing

Headquarters

TaipeiCONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report15

1.2 Economic Performance
1.2.1 Financial Performance
AUO is committed to maintaining the transparency in our business
operations. In addition to monthly revenue announcements, AUO organizes
quarterly investor conferences and annual shareholders' meetings. An"Investor Relations" section has been created on the AUO corporatewebsite. Financial information and brief ings of institutional investor
information seminars are regularly posted online for investors' reference.
Material information is disclosed through the Market Observation Post
System of Taiwan Stock Exchange. The provision of timely information
keeps shareholders and investors up to date on company operations.

For more about ﬁnancial performance, see2023 Annual Report Chapter 5

Business Operation Proportion

Financial Strategies
Sustainability is the core philosophy of AUO. Through our robust f inancial structure and extensive research anddevelopment capabilities, we can optimize our distribution of resources to enhance the value of our core business. In the
future, industrial competition will gradually transition from competition between individual companies to competition
between ecosystems. Complementarity, cooperation, and co-creation therefore form the main axes of our strategy.
Investment, joint ventures, acquisitions or strategic alliances are employed to integrate our upstream and downstream
value chains in order to build a competitive ecosphere. In terms of ﬁeld development, AUO is building on our existingcore businesses to expand into ﬁve main ﬁelds: Smart Retail, Smart Health, Smart Education and Enterprise, Smart
Mobility, and Smart Manufacturing. We supply and link together these ﬁeld economies through innovative display andsmart technologies.
AUO is also strengthening our global operations and resources by implementing localized management. The
advantages and human talents of local ecospheres around the globe are brought together to provide customers
with total solutions. We look forward to becoming the supplier of smart solutions based around display technologies
in different application fields, working together with partners from different industries on value innovation and cocreation, and rewarding all stakeholders including shareholders, investors, employees, customers, suppliers, thegovernment, and society.

In recent years, AUO has gradually demonstrated the strength it has accumulated in its biaxial transformation. Through the establishment of subsidiaries and mergers and acquisitions, it has actively
deepened the expansion of its vertical businesses in areas such as mobility, retail, healthcare, education and enterprise, intelligent services, and energy. By 2023, the revenue scale of AUO's verticalbusiness has accounted for 17% of combined revenue. In terms of panel manufacturing, AUO provides a complete product line including car display, monitor, notebook and tablet, commercial displays,
LCD, etc., and has a diverse and leading technology, with service coverage spanning the globe. AUO will accelerate its transformation, expand its vertical business and revenue from high-value-added
products, reduce the impact of panel economic ﬂuctuations on operations, and make AUO's operations more stable.

Capital Expenditure & R&D Expenditure
AUO follows the Smart Investment principle by carefully reviewing allof our investments. The biaxial transformation strategy is emphasizedwith investments aimed at making further improvements to the valueadded in display technologies (Go Premium) and exploration of verticalmarket applications (Go Vertical). Technological leadership is essential
to maintaining our competitive advantage. AUO investment in researchand development has stayed steady every year, regardless of industrial
or economic trends. AUO’s consolidated R&D expenditure in 2023 was
NT$13.23 billion. In addition to upgrading advanced technologies like Mini
LED and Micro LED as well as optimizing our production processes, wehave also developed a comprehensive patent strategy. The consolidationof our technological leadership by increasing value-added by our
products and production capacity, we can not only raise the thresholdfor our competitors but also support our brand customers during theirglobal market expansion.

Shipments of panels(10,000 square meters)

Capital expenditure & R&D expenditure(NTD 100 million)
359.5

400
2,571

3,000

1,917

2,000

2,098

200

1,000

100

0

0
2021

2022

2023

267.9

300
170.4
130.7

2021

128.7

2022

R&D expenditure

132.3

2023
Capital expenditure

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Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

16

Sustainability-linked Loans and Green Loans

Green Credit
Sustainability-Linked Loans
Green credit is when ﬁnancial institutions provide loans earmarked
for the purchase of real estate, machiner y or equipment
required for green R&D, manufacturing, or business operations,for obtaining intangible assets such as green certif ication or
patented technologies, or for investment, starting a new business,acquisitions, or business operations. AUO obtained green loans
from the Changhua Bank in 2022 to support our expanded useof green electricity and investment in the construction of a solar
power plant by our subsidiary DaPing Green Energy. The project isstill valid in 2023, without any new quota added.

A sustainability-linked loan is where a sustainability performance index published by an impartial third-party bodyis used as a basis for periodic assessment of the borrowing enterprise’s performance in economic development,
environmental protection, and social impact. The bank will then actively lower the loan interest rate if a firm
achieves some growth in the indicators mentioned above. AUO obtained separate sustainable development loans
from DBS Bank, Mega Bank, Bank of Taiwan and First Bank from 2019 onwards. Another sustainability-linked loan
was set up with the Republic of China’s Export-Import Bank in 2022. For the period of the loans, partner banks
will periodically assess the sustainability performance of AUO through Dow Jones Sustainability World Indexand other indices annually. In 2023, AUO signed a syndicated loan linked to sustainability indices with Taiwan
Bank and 18 other banks. This demonstrates the banking industry's support and recognition for AUO’s businessphilosophy and sustainable development strategy, and its practical actions to support AUO's growth.

Blue Loan
Green Deposits
A Blue Loan is where a f inancial institution provides a loan that must be invested indesignated water resource sustainability, ocean resource sustainability, supply of cleanwater resources, ocean f riendly products, or ocean ecological conservation projects orprograms. The use of funds and project outcomes are also examined on a regular basis.
Blue loans were provided by the DBS Bank in 2022 to support AUO’s investment in water
recycling and puriﬁcation equipment. The expansion of ﬁnancing options will enable thedevelopment of even more blue initiatives. The project is still valid in 2023, without any new
quota added.

Progress
During the expansion of capacity at the Kunshan fab, it faced the dilemma of
insuff icient processing capability in the pure wastewater treatment system,
urgently needing system expansion. AUO utilized the Blue Loan supported by
DBS Bank to invest in projects such as expanding the pure wastewater andrecycling systems, and implementing headstream diversion improvements.
Ultimately, upon completion of the expansion project and optimization of therecycling unit, an additional 8,100 CMD of water could be recovered for re-entry
into the manufacturing process under full-capacity conditions, ensuring that theentire factory maintained a process water recycling rate of over 90%.

Green deposits are special-purpose deposits collected by banks that will all be used forgreen f inancing projects and programs focused on topics such as the development of
renewable and energy technologies, improving and energy efficiency and conservation,
pollution prevention and control, water conservation or remediation, or recycling and reuse.
Once the deposits are received, the bank must periodically report on how the specialpurpose funds were used and have the reports verif ied by an independent third-party.
The bank may offer a bonus interest rate on the deposit to encourage participation from
corporate clients. For corporate clients, it represents a substantive way of demonstrating
their positive effect and long-term beneﬁts on the environment and society. Green deposits
were made with DBS, Chang Hwa Bank, and KGI Bank in 2022, as well as the Land Bankin 2023. AUO has partnered with banks to promote green transformation and makesustainable operations a reality. In the future, AUO will continue to join forces with thebanking sector by not only providing ﬁnancial support for sustainable and environmentallyf riendly project targets set by AUO, but also use innovative green f inancing products
offered by banks to build a more appropriate ﬁnancial portfolio. This will not only reduce
costs and improve investment returns but also provide a sustainable environment for ecofriendly development projects.

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2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report17

1.2.2 Tax GovernanceTax Management Policy
To ensure effective operation of the tax management mechanism of AUO and its subsidiaries, we have established Tax Policy to make sure we can effectively manage all tax related matters and fulﬁll our
corporate responsibilities.

For more about AUO Tax policy, see AUO ESG website

In response to international trends of tax governance, AUO has strict management of taxation administration for effective control of taxation risks and implementation of corporate sustainable
development. AUO has a tax management department. The daily taxation administration and management is carried out by the accounting director and the professional and experienced tax specialist
assists the accounting director in fulﬁlling the company's taxation duties. The chief ﬁnancial ofﬁcer bears the ultimate responsibility for tax management. Faced with ever changing tax regulations in
Taiwan and overseas, we have adopted appropriate response measures and adjusted the strategies accordingly, as well as reinforcing our professional knowledge through the professional services
provided by external tax advisory agencies.

Tax Risk Management
AUO pays close attention to any taxation policy changes in countries to evaluate taxation risks that may arise from developing the business locally.

RegionTax Type

Risk Content▐ Taxation disputes arising from uncertainties in tax legislation

TaiwanChina and Asia
EuropeUnited States

Each country has a varied implementation schedule regarding the Base Erosion and Proﬁt Shifting (BEPS) policy
Income tax

interpretation and legislation procedures as promoted by Organization for Economic Cooperation and Development

Indirect tax(OECD). This has resulted in increasing cost of tax compliance.

OthersChanges in tax regulations or incentive measures may affect the Company’s original tax planning.
Cost of taxation incurred by failure to implement tax management policies, failure to give timely evaluation in responseto changes in tax regulations or trading methods.

Compliant with the Income Tax Act Article 39 requirements, AUO currently uses the amount of loss deduction for the previous ten years to offset the amount of the proﬁt-seeking enterprise income inthe current year, and applies for other taxable amounts of relevant investment deductions and exemptions in accordance with the Statute for Industrial Innovation The remaining subsidiaries also apply
for suitable tax waivers, incentives and subsidies based on their mode of business.
Note: The Base Erosion and Proﬁt Shifting scheme is an international tax reform led by the OECD aiming to establish an international tax system beneﬁcial to the growth of the global economy.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Corp. Governance &Nomination Committee

1.3 Governance Organization

Shareholder meeting

Organization, Roles and Responsibilities

Board of Directors

18

Chief Consultant of
Antitrust Compliance

Audit Committee
Compensation
Committee
Sustainability & ERM
Committee

ChairmanStrategic Investment
Merger & Acquisition

CEO

Sustainability
Development
Auditing
Management

President
Mobility Solution
Business Group
Smart Retail
Business GroupIntelligent Service
Business Group

Smart Healthcare
Business Group
Smart Education &Enterprise BusinessGroup

Technology Group

ManufacturingGroup

Display
Strategy GroupOperational
Support Units
Department Name

Chief Consultant of
Antitrust ComplianceTo ensure compliance with domestic and international antitrust laws by
the Company; assess, mitigate and provide strategic advices on a varietyof antitrust related risk.

Solar & Semiconductor
Material Business Unit

Strategic Investment,
Merger & Acquisition

Value transformation strategy investment layout.

Mobility Solution BusinessGroup
Smart Retail BusinessGroupIntelligent Service
Business Group
Smart Healthcare
Business Group
Smart Education &Enterprise Business Group

Globalization
Development Ofﬁce
ESH & Risk
Management

Business

Auditing Management

Supply Chain
Management

Solar &
Semiconductor
Material BU

Department Name

Sustainability
Development

EnergyBusiness Group

Consolidated management of corporate sustainability policies andstrategic directions and establish a strategic corporate sustainable
development plan that is in line with international trends. With net-zerocarbon emissions as our core goal, we will develop proactive mitigation
and adaptation actions to meet stakeholders' expectations for corporate
governance, environmental protection and social care.
The management and supervision of internal audit and operatingprocedures.
Technical upgrades and comprehensive development of automotive
display solutions.
With display technology as the core advantage, assisting businesses increating customer-centric immersive consumption experiences.
Providing comprehensive industrial automation solution services forcross-regional and multi-venue management.
Focusing on ﬁelds such as smart operating rooms, diagnosis detection,and integrated medical information management, providing intelligent
healthcare solutions.
Integrating diverse display technologies to create diversiﬁed display
solutions for enriching the educational and corporate environments.

Technology Group
Manufacturing Group
Display Strategy Business
Group
Energy Business Group
Supply Chain
Management
Globalization
Development Ofﬁce
ESH & Risk Management
Operational Support Units

Business
Vertical integration of the solar energy value chain, managing solar
energy, semiconductor materials research and development, andprocessing services.
The R&D of advanced display technologies, design, and development of
new products.
The planning and management of display manufacturing process, rawmaterials and ﬁnished products.
The management of TV, information, mobile devices, automotive andother display business departments, including product planning,marketing, businesses and customer service, and provision of a full rangeof smart solutions.
The provision of high-efﬁciency solar modules, all-round solar power
plant service, and highly integrated service platform concerning energy
management & service.
The management of procurement, export and import affairs.
The management of the regional market development, customer
development and technical services of and for the display business ofoverseas companies.
Planning for environmental safety, health and operating risk
management.
Finance, Legal, Human Resource, Digital Technology, Quality
Management, Corporate Strategic Planning, etc.

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Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report19

1.3.1 Board of Directors
Board Operation
The AUO Board of Directors is responsible for advising company strategies, supervising the managements and overseeing all operations and arrangement of corporate governance systems. The Board
reports to the Company and shareholders and exercises its powers under the law, the Articles of Incorporation and resolutions passed by the shareholder meetings.
The election of the 10th AUO Board of Directors was held at the Annual General Shareholders' Meeting in 2022. The 9 directors (including 5 independent directors) were elected using a nomination
system where shareholders vote from a list of nominated candidates during the meeting. The directors on the current Board of Directors have extensive and diverse industry experience in commerce,ﬁnance, accounting, law and business administration, as well as corporate social responsibilities. The AUO Board of Directors meets at least once every quarter and 7 meetings were convened in 2023.

ESG-related Resolutions at Meetings in 2023
Meeting dateMeeting typeFebruary 7

Board of Directors
meeting

Contents of report and resolutions
Progress report on green electricity
procurement
2022 report on the implementation of CSR
Principles and Business Integrity Principles

February 8

Board of Directors

2022 report on the implementation of
Corporate Governance Principles andDirectors and Managers' Ethical Code of
Conduct
2022 risk management reportFebruary 13

Strategy meetingof Directors

AUO's Corporate Social Responsibility
Principles
Results of CSR EPS 2025 Goals
Achievement status of material topics

April 27

Board of Directors

Report on sustainable development action
plans
Progress report on greenhouse gas inventory

July 26

Board of Directors

August 31

Strategy meetingof Directors

Progress report on greenhouse gas inventoryMid-year report of the ESG and Climate
Committee
Report on Biodiversity Policy
Progress report on Plastic neutralization goal

October 31

Board of Directors

Progress report on greenhouse gas inventory

Board of Directors Performance Evaluation“The Regulations for Evaluating the Performance of the Board of Directors” were passed by the AUO
Board of Directors on January 25, 2017. An internal performance evaluation is conducted in the fourth
quarter of each year. An evaluation by external independent bodies or a team of external experts andacademics is also conducted at least once every three years.

Internal Performance Evaluation
The Board of Directors, functional committees, and Board secretariat conducted a performance
evaluation for the Board of Directors, Board members, Audit Committee, Remuneration Committee,
and “Corporate Governance Committee” in 2023. The evaluation encompassed the 5 dimensions
includes social, environment, corporate governance, and the outcome was divided into threelevels: Above Average, Acceptable, and Improvement Needed. The outcomes of the 2023 AUO selfassessment was Above Average with no major improvements required. The evaluation outcomes
were reported to the Board in the ﬁrst quarter of 2024 and will be used as a reference for determining
the performance, remuneration, and re-appointment of Board and functional committees.

External Performance Evaluation
The Taiwan Corporate Governance Association (TCGA) was commissioned to conduct an
independent external performance evaluation of the Board of Directors in 2021. The evaluation was
conducted using online self-assessment questionnaires and on-site visits. The eight areas assessed
were Board composition, leadership, delegation, supervision, communication, internal control andrisk management, self-discipline and support system. The outcomes of the evaluation were reported
to the Board in February 2022. The recommendations of the TCGA will be used as a reference by
the Board of Directors for continued improvements to its functions including amendment of thewhistleblower system and channels.

For external performance evaluation,please refer to the overall assessment of theChinese Corporate Governance Association.

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Fact
Sheet

Appendix2023 AUO Sustainability Report20

Education and Training of Directors
The continuing education hours of thedirectors meets the requirements of the“Directions for the Implementation ofContinuing Education for Directors of TWSE
Listed and TPEx Listed Companies”.

Position

Name

Newly
appointed orreappointed

Hours

Position

Name

Newly
appointed orreappointed

Hours

ChairmanShuang-Lang(Paul) Peng

Reappointed

9

Independent
directorPeng Chin-Bing

Reappointed

18

DirectorFrank Ko

Reappointed

6

Independent
director

Chen Jang-Lin

Reappointed

6

Director

Tsai Juan-Juan

Reappointed

6

Independent
director

Chiu-Ling Lu

Reappointed

6

Director

Han-Chou (Joe)
Huang

Reappointed

6

Independent
director

Cathy Han

Reappointed

15

Board Diversiﬁcation
The current Board of Directors all have extensive and diverse industry and academic backgrounds. The AUO "Corporate Governance Principles" calls for diversity in the composition of the Board of
Directors. In addition to capping the number of directors that is also company managers to no more than one-third of the Board, suitable diversiﬁcation guidelines were also drawn up for Board
operations, business models, and development requirements. These include but are not limited to the 2 key standards below:
Basic criteria and values including gender and age.
Professional knowledge and skills, such as professional background, professional skills and industry experience.

Objectives and Progress of Board Diversity Policy

Two or more female directors have sat on the AUO Boardof Directors for 15 consecutive years since 2007. The 9
candidates nominated for the 10th Board of Directors
included 5 independent directors and 4 female directors.
After the Board re-election in 2022, more than half of theBoard was now made up of independent directors and theratio of female directors was also increased to 44%. The
Board consisted of 8 directors between December 7, 2023,
when Independent Director Yen-Hsueh Su resigned, andDecember 31, 2023. These included 4 ordinary directors and
4 independent directors. The ratio of female directors wastherefore 37%.

Category
Composition
GenderTerm

Objectives

Progress

There are 8 seats including 4 directors and 4 independent directors (Note)
Women held at least 2 directorships
If an independent director has also already served 3 terms, then the appointment may
be extended for a 4th consecutive term with the approval of the Corporate GovernanceCommittee
The majority of independent directors do not exceed 3 terms
Director’s age at time of election must be under 74
The number of directors that are also company ofﬁcers should not exceed 1/3 of the Board

Concurrent positions

Independent directors are advised against being an independent director at more than 3companies concurrently
Independent directors should not be a director (including independent director) or
supervisor at more 5 TWSE/TPEx-listed companies concurrently

Diverse professional
skillsIncluding technology industry, technology R&D, industry innovation, f inancial accounting,ﬁnancial investment, Corporate sustainability, Risk management

Note: On June 17, 2022, our company elected 9 directors (including 5 independent directors) at the annual shareholder meeting.
Independent Director Yen-Hsueh Su resigned on December 8, 2023.

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Appendix2023 AUO Sustainability Report

21

Member of Board Directors (as of Dec 31, 2023)
Number of otherTaiwanese publiccompanies
Employee
Independence
concurrently
positionstatusOver 9 Technology Technical Industrial Financial
Financial
Corporate
Risk
serving as anyears
industry
research innovation accounting investment sustainability management
independent
director

Term of Ofﬁce

Professional Knowledge and Skills

Name

Position

GenderAge

Nationality

Shuang-Lang(Paul) Peng

Chairman

Male

60-69

ROC

Not applicable0Frank Ko

Director

Male

50-59

ROC

Not applicable0

ChuangChuang Tsai

DirectorFemale

70-79

ROC

Not applicable0

Han-Chou(Joe) Huang

Director

Male

60-69

ROC

Not applicable0Chin-Bing Independent(Philip) Peng
Director

Male

70-79

ROC

Note

1

Jang-Lin
Independent(John) Chen
Director

Male

70-79

ROC

Note

0

Chiu-Ling Lu

Independent
Female 60-69
Director

ROC

Note

1

Cathy Han

Independent
FemaleDirector

ROC

Note

3

50-59

Under
3 years

3-9
years

Note: Currently, there are a total of 8 seats on the 10th incumbent board of directors, with independent directors occupying 4 seats, accounting for half of the total number of seats on the board. This
complies with Article 30 of the Company Act.
The introduction of Board Members, see
AUO website - Investor Relations

Director Liability Insurance
AUO has ﬁled for liability insurance for the Directors and managers and reports to the Board of Directors after the insurance has been renewed. The insurance amount is regularly evaluated every year.

Mechanism to Prevent Conﬂicts of Interest
AUO has set down conflict of interest prevention provisions of the Board of Directors in the Management Guidelines for Board of Director
Meetings and the Audit Committee Charter that if a director member of the audit committee has a personal interest in any agenda item, thedirector shall explain the essential content of the interest. If the director's personal interest is likely to prejudice the interest of the company, thedirector member may not participate in discussion and voting and shall recuse himself or herself from the discussion and voting and also may
not exercise voting rights as a proxy for any other independent director member. AUO has independent directors who will take an objective andfair position and make suggestions based on their professional capacity and experience. When discussing any proposals, the Board of Directors
should fully consider the opinions of independent directors and include their opinions or reasons of consent or objection in the minutes of themeeting, while complying with the interest recusal principles to effectively protect the interests of the Company. Additionally, none of the board
members hold cross-shareholdings with main suppliers.

For more about directors’
recusal practice, see2023 Annual Reportchapter 3

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Fact
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Appendix2023 AUO Sustainability Report22

1.3.2 Audit Committee
The Audit Committee is responsible for helping the Board of Directors supervise the Company's operations and exercise authorities vested in
it by the Securities and Exchange Act, the Company Act and other relevant laws. The Audit Committee communicates with the Company’s
ﬁnancial statement auditors on a regular basis and is responsible for the appointment of ﬁnancial statement auditors as well as conducting
independence and performance reviews. Meanwhile, the Company's internal auditors will regularly submit audit summary reports to the
Audit Committee in accordance with the annual audit plan, together with the Audit Committee's mailbox submission report. The Audit
Committee will also regularly evaluate the Company's internal control system, internal auditors, and their performance. The Company’s entire
Audit Committee comprises independent directors (including 4 ﬁnancial specialists), and all 5 independent directors meet the criteria as
stipulated in the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” regarding
profession, work experience, independence and the number of independent director positions held concurrently.

For more about Audit
Committee, see2023 Annual Report
Chapter 3

1.3.3 Corporate Governance Committee
To strengthen corporate governance and enhance the efﬁcacy of the Board of Directors, AUO established a Corporate Governance Committee in 2019, which is convened by the Chairman of the Board of
Directors and entirely consists of independent directors. In accordance with the Company’s Corporate Governance Code, the Board of Directors should convene at least once a year and whenever there isa need. Its primary duties are as follows:❶ Stipulate the criteria for the background diversity and independenceof Board directors, such as expertise, skills, experience, and genderand seek, review and nominate the board director candidates,
accordingly❷ Establish and develop the organization structure of the Board of
Directors and all committees, conduct performance appraisal on the
Board of Director, committees and board directors❸ Stipulate and regularly review the Board directors’ continuing educationand succession plan

❹ Inspection of the successor plan for the senior executives above the grade ofpresident (or equivalent)❺ Provide newly appointed directors with appropriate introduction to their role in orderto familiarize them with their responsibilities as well as the Company’s operations
and environment❻ Stipulate AUO’s Practical Corporate Governance Guidelines❼ Supervision of risk management and formulation of Risk
Management Policy and Procedure

Introduction to the Functional
Committee, see AUO website Investor Relations

Corporate Governance Manager
The corporate governance manager in charge of the supervision and planning of the corporate governance meets the qualiﬁcations outlined in the Article 3-1 of the Corporate Governance Best PracticePrinciples for TWSE/TPEx-Listed Companies governing the corporate governance personnel. Their duties and power include providing the latest regulatory developments concerning the Company's
operations along with the information required by the Directors and the Audit Committee in their business execution; assisting the Directors and the Audit Committee in complying with laws andregulations; regularly reporting the corporate governance practice to the Corporate Governance Committee and the Board of Directors every year; organizing matters related to the Board of Directors
meetings and shareholders' meetings in accordance with the law; preparing the minutes of the Board of Directors meetings and shareholders meetings; assisting with the appointment and continuing
education of the Directors and Audit Committee members. The execution of the above is handled by the secretarial department of the Board of Directors.

Implement GovernanceTo ensure transparency and complete handling procedures of the corporate governance, AUO continues to participate in the corporate governanceappraisal conducted by the TWSE and ranks among the top 5% for 7 times, a tremendous mark of recognition. The outcomes of AUO integrity initiatives
were also overseen through the HR department, the Board of Directors and the risk management sub-committee of the ESG& Climate committee. The
principle of full of disclosure was upheld by having dedicated units ﬁle reports with the TWSE Market Observation Post System in accordance with the“Procedures for Veriﬁcation and Disclosure of Material Information of Companies with Listed Securities,” “Procedures for Press Conferences Concerning
Material Information of Listed Companies,” “Taipei Exchange Rules Governing Information Reporting by Companies with TPEx Listed Securities,”“Regulations Governing Establishment of Internal Control Systems by Public Companies,” “Regulations Governing Content and Compliance Requirements
for Shareholders' Meeting Agenda Handbooks of Public Companies,” the four major company laws and other regulations.

Shareholders'Meeting

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Fact
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Appendix2023 AUO Sustainability Report23

1.3.4 Remuneration Committee
AUO set up the Remuneration Committee in 2011 in accordance with the Regulations Governing
the Appointment and Exercise of Powers by the Remuneration Committee of a Company
Whose Stock is Listed on the Stock Exchange or Traded Over the Counter, with the appointmentof its committee members determined by the Board of Directors. After the re-election of theCommittee members in 2022, the independent directors, Peng Chin-Bing, Yen-Hsueh Su andChen Jang-Lin served as the committee members and the independent director, Peng Chin-Bingserved as the remuneration committee convener. A total of 4 regular meetings were held in 2023.

Remuneration Committee primary duties are as follows:❶ Stipulate and periodically review compensation policies, systems, standards andstructures and performance of directors and managers.
❷ Periodically review and stipulate compensation packages of directors and managers.
❸ Selection and appointment of managers; periodical review of the
managing teams’ cultivation and development plan.

Remuneration Policy of the Board of Directors and Senior Management
Directors’ Remuneration
AUO regulations on directors’ remuneration adhere to 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.” Recommendations are made by the Remuneration Committee to the Board for approval prior to implementation. The AUO Articles of Incorporation
stipulate that no more than 1% of company proﬁts in any given year may be set aside as directors' compensation. If there are any accumulated losses from past years however then funds should be set
aside for their repayment ﬁrst.
Material Topics

The Board’s performance Included in the annual target review of the Remuneration Committee

Remuneration Policy of Senior Managers
The standard of compensation for senior AUO managers are based on the “Management Remuneration
Policy” set by the Remuneration Committee and Board of Directors. Proposed compensation reviewed by the
Remuneration Committee for each year before being submitted to the Board for conﬁrmation. We also workwith professional outside remuneration consultants to ensure competitive remuneration for senior managers
and to improve the linkage between remuneration policy, market trends, and environmental developments.
The remuneration of AUO senior managers (includes CEO) is linked to the business performance of theCompany. The compensation package is made up of salary, long/short-term variable bonuses, and employee
bonuses from distributed surpluses. Variable bonuses are determined by operation performance. Dependingon the role and performance, it may account for between 70% and 90% of their total remuneration. For
the long-term incentives plan of AUO senior managers (includes CEO), the Remuneration Committee
sets ﬁnancial and ESG performance indicators based on the Company's long-term development strategy.
Performances are assessed on a 3-year cycle. Over 50% of the incentives take the form of shares and includes
claw back provisions that strengthen the link with shareholder interests and enforce commitment tosustainable management.

Senior Management (including the CEO)
Performance-based indicators
Financialperformanceindicators

ESG
performanceindicators

Earnings Before Interest, Taxes,
Depreciation, and Amortization(EBITDA)
Strategic Product Revenue

AUO CSR EPS Sustainable
Development Goals
Management target/matric ofmaterial issue

Executive Stock Ownership Requirements
The company remunerates its executives partly through stock options and has established the "Executive Stock Ownership
Guidelines". These regulations stipulate that the value of stocks held by executives should be a certain multiple of their annual
salary: for the chairman serving as the executive and the CEO, it should be 10 times; for other executives, it should be 5 times.
Executives are required to meet the stock holding target within five years of their appointment and maintain the abovementioned stock value during their tenure, to strengthen company governance and fulfill the commitment to sustainablebusiness operation.

For information on the salary of
non-management and the compensation
policy of the board of directors, see
the Fact Sheet section in this report.

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2 Sustainable
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Sustainability

4 Inclusive
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Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report24

1.3.5 Sustainability and Enterprise Risk Management (ERM) Committee
Functional Upgrade of Sustainable Governance Organization
AUO is committed to responding to stakeholder concerns in the environmental, social and corporate governance dimensions as well as the promotion of globalized business risk management andresponse strategies for realizing sustainability goals. A motion to upgrade the existing “ESG and Climate Committee” to the “Sustainability and ERM Committee” was therefore passed by the Board of
Directors on March 1, 2024. The new committee reports directly to the Board. The committee charter provides for 3 committee members made up of the Chairperson (convener) and 2 independent
directors. The committee is also to meet at least 2 times a year. The main roles and responsibilities of the Sustainability and Risk Management Committee include:

1. Sustainable development❶ Formulating the Sustainable Development Principles, supervising its implementation, reviewing
and tracking its performance, making amendments, and reporting to the Board of Directors on aregular basis❷ Supervising the proposal and outcomes of sustainable development polices, systems, or related
management approaches and substantive action plans; presiding over material Company
decisions on sustainability issues including technology applications, product value, energy
development, green manufacturing, value chain management, citizenship (including people andhuman rights), risk management, circular economy, and carbon energy operations❸ Strengthening engagement with all stakeholders andmonitoring issues of stakeholder concern❹ Ensuring the timeliness and accuracy of disclosuresrelating to sustainable development❺ Supervising other tasks related to sustainable development
approved by the Board of Directors

2. Risk Governance❶ Review of risk management policy, procedure, and framework, andto examine the effectiveness of the risk strategy❷ Determining qualitative and quantitative risk capacity as well as
optimizing the allocation of resources❸ Implementing the Board’s risk management decisions, supervising the risk management
mechanism of the Company, and review of risk management priorities❹ Review the implementation of risk management, make recommendations on necessary
improvements, and making annual reports to the Board of Directors

The “Sustainability and ERM Committee” oversees the “Sustainability and ERM Executive Committee” The implementation committee is headed by the first level supervisor and is convened on aquarterly basis to enforce the implementation of ESG activities as well as the disclosure of important ESG performance information.

For more information on the Sustainability & ERM Executive Committee, please refer to 2.1 of this Report.

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Sustainability

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Subsidiary

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Appendix2023 AUO Sustainability Report25

1.4 Business Integrity
Disseminate

1.4.1 Integrity Culture
Rooted in a culture of integrity, AUO actively implements values of credibility and fairness and complies with the guidelines of the “EthicalCorporate Management Best Practice Principles for TWSE/GTSM Listed Companies”. Targeting the Board Directors, all employees, suppliers,
contractors and other stakeholders, AUO strengthens the advocacy to prevent the seven major behaviors such as bribery and corruption, giving
unlawful political donations, inappropriate charity donations or sponsorships, inappropriate gifts/hospitality or other illegitimate proﬁts, violating
intellectual property rights, engaging in unfair competitions and products or services damaging the rights and interests of stakeholders. The
sustainable development division will be in charge of the stipulation, execution and supervision of the integrity management policies and willreport to the Board of Directors once a year regarding the implementation of the integrity management policies. AUO builds and implements a
corporate spirit of integrity management through four major dimensions including including disseminate, detection, prevention and tracking.

Tracking

Integrity
Governance
Detection

Disseminate

Prevention

Build Integrity Policies and Guidelines
AUO provides employees with a code of conduct and guidelines for adherence, encompassing four major aspects: integrity policy, integrity governance, integrity communication, and integrity values.
AUO also sets assessment indicators to ensure that employees understand and consistently implement integrity.

1

Corporate Integrity Principles
Establish a business integrity section on the company's internal platform toremind supervisors and colleagues to implement honest behaviors.

523Intellectual Property Protection Measures
Carry out intellectual property management training, partner with employees
to advocate duties and obligations to protect intellectual property and protect
intellectual property through conﬁdentiality agreements.

Information Security Management Measures

The company complies with all laws prohibiting money laundering or
ﬁnancing for illegal or improper purposes.

Antitrust Compliance Principles
The Company is committed to ensuring that all business activities comply
with antitrust regulations.

Ensure the security of the Company’s information system and available software/
hardware warranties.

Compliance with Insider Trading Laws

46

Anti-Money Laundering

To maintain the fairness of market transactions, insider trading that provides
specif ic investors with unethical and illegal advantages is strictly prohibited.
Prevention measures against insider trading have also been established.

7

Code of Ethical Conduct for Employees
Establish the Company’s internal ethical guidelines to reduce risks ofunethical behavior occurrences.

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Appendix2023 AUO Sustainability Report26

In an effort to promote the concept of integrity, all new employees at AUO must complete an integrity training course upon employment and sign a declaration of integrity. Honesty and integrity are
the core values of AUO and the DNA of a business, and are listed as one of the necessary assessment criteria in the performance evaluation of employees. In the ﬁscal year of 2023, a total of 905 newcolleagues completed the training and the completion and signing rate reached 100%. In addition, AUO also carries out annual integrity compliance training courses for directors and employees throughan educational training mechanism. The completion rate of director training in 2023 reached 100%; Employee education training for more than 35,000 colleagues worldwide, with a completion rate of
99.03%. Moreover, for all colleagues and suppliers, integrity case studies are promoted at least three times a year through internal announcements and emails; For contractors, monthly meetings areused as a platform to promote these ideas, reminding colleagues and stakeholders of the company's commitment to integrity in business operations.

Detection
Each year, a designated department will be in charge of conducting conﬂicts of interest declaration and internal audit, as well as external audit for suppliers to examine possible integrity risks. In 2023,
AUO opened up the requirement to the company management and all colleagues who can make their own declarations. A total of 2,466 people completed the declaration. Regarding suppliers,
we advocate a commitment to fair trade with integrity at the annual supplier conference and comply with the external audit system of the RBA to afﬁrm that our key manufacturers adhere to theguidelines.

Prevention
Integrity Job Management
AUO regularly inspects the integrity department and deﬁnes the list of integrity positions for the departments with decisive inﬂuence on the import/export, product prices, investment targets anddepartments with frequent contact with suppliers, customers and contractors. AUO implements regular job rotation and business substitution through systematic management to prevent corruption.
In 2023, we inspected 456 employees holding integrity positions and conducted 2 trainings for colleagues holding integrity positions, including training for seven major prevention behaviors and casestudies and prevention advice programs. There were 9 people on the rotation list, and the rotation implementation rate in 2024 has reached 100%.

Whistleblowers and No-Retaliation
Under the whistleblower system, if ethical violations are discovered during the course of their duties, a whistleblower complaint can be made through internal and external channels.

Internal channels

Direct superior, CEO mailbox,
Audit Committee’s mailbox

External channels

Supplier's Report Hotline

An investigation is launched once a complaint has been raised. The investigation is conducted by dedicated personnel including the audit unit or a committee established in accordance with the“Management Regulations Governing Investigative Committee for Serious Disciplinary Cases.” The “Procedures for Handling Complaints Relating to Accounting, Internal Controls, and Audits” and“Complaint Procedure” were also formulated to define the complaints procedure, the competent unit for handling cases and incident procedures. Personal information is kept confidential andretribution against employees strictly prohibited. If an employee can provide advance warning, report, or prevent illegal, corrupt, or other actions harmful to the interests of the Company, the rules oncommendations and disciplinary action at AUO’s Taiwan Head Ofﬁce stipulates an appropriate reward if their complaint is found to be true and helped prevent loss to the Company. If an employee has
against corporate integrity principles, inappropriate ﬁnancial transactions with a company's business partners or violates AUO's "Anti-Trust Compliance Policy", upon veriﬁcation, appropriate punishment
will be given. Such events will also be reﬂected in employee performance evaluations and the appraisal. This also serve as an important factor to be considered for remuneration raises or promotions.

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Internal Controls
Internal Control System
Relevant control mechanisms have been implemented by AUO in accordance with the “Regulations
Governing Establishment of Internal Control Systems by Public Companies” while also taking ouroverall business activities and other industry-specif ic legislation into account. Enforcement rules
for internal audits based on the internal control system have been formulated and implemented byaudit units as well. The effectiveness and level of compliance with the existing control systems andprocedures are being assessed on a continuous basis; all AUO operations and subsidiaries fall within
the scope of audits.

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

27

Improvements and Follow-ups
Whistleblower Cases
A total of 20 whistleblower complaints were received by AUO in 2023. AUO’s
internal control systems have been established in accordance with laws. An audit
unit conducts annual risk assessments and devises audit plans. Audits are carriedout in line with the plan, and the outcomes are reported quarterly to the Audit
Committee and the Board of Directors for management purposes. AUO remains
committed to its integrity principles and take measures to prevent corrupt
behavior.

Organizational Function and Implementation Strategy

Cases
Received

Cases
ClosedConﬁrmed Cases of Corruption
or Ethical Violations

Business integrity
violation reporting
system14

14

1 (Note)Audit Committee’s
mailbox440Compliance email
hotline220

IndependenceInternal Auditing is an independent unit that reports directly to the Board of Directors. The unit
consists of a dedicated Chief Auditor and a number of qualiﬁed full-time internal auditors. Auditing
personnel continue to hone their professional knowledge and skills by attending audit-related courses
conducted by professional training bodies every year.

Risk Assessment
Risk assessments are conducted every year and an audit plan drawn up based on identiﬁed risks. Oncethe plan is approved by the Board it is put into action. Special audits are also conducted as necessary.

Audits and Follow-up of Defects and Improvements
General and special audits are carried out with recommendations or improvements suggested for all
defects or anomalies found during the audits. An e-audit system is used to track progress and audit
improvements to identiﬁed deﬁciencies until the improvement is complete. The system also provides
the management with a picture of internal controls as well as timely warning on existing deﬁciencies
or potential risks.

Self-assessment of internal controls
A self-assessment of internal controls is conducted every year. Internal Auditing reviews theoutcomes of self-assessments conducted by each unit and subsidiary. The review looks at whether
the assessment was carried out, and examines the documentation for quality assurance. The resultsof the self-assessment are compiled and reported to the Audit Committee and Board of Directors toprovide a basis for assessing the overall effectiveness of the internal control system, and for issuing theStatement on Internal Control.

Note: The employee involved exploited their position to receive gifts f rom
suppliers. The value of the gifts exceeded the upper limit set in the Employee
Code of Ethics. The employee was sanctioned with a major demerit and the
supplier blacklisted.

Violations
There were no sanctions involving violations of anti-money laundering regulationsin 2023.

Reﬁnements for Continuous Improvement
AUO embarked on an assessment of external audits at the end of 2023 to further
refine our structure and management mechanisms for integrity management
and privacy protection. Agreed-Upon Procedures expected to be carried out in
2024.

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Appendix2023 AUO Sustainability Report28

1.4.2 Regulation ComplianceFair Competition
AUO commits to follow the laws and regulations of the countries where we
conduct business, stipulate a “Integrity Handbook” to serve as a basic code of
conduct for our colleagues and formulate policies to comply with various laws.

PolicySince 2015, AUO has established the “Anti-Trust Compliance Policy” and the“Anti-Trust Law Compliance Manual”, which were updated and revised in
2023. AUO also strengthened its compliance measures on other legal issues
by formulating the “Export Compliance Policy”, “Anti-Corruption Compliance
Manual”, “Copyright & Software Privacy Policy”, “Anti-Espionage and Trade
Secret Theft Policy”, “Conflict Minerals Policy”, “Anti-Dumping Policy”, and“AUO Policy on Data Protection Privacy of Personal Data”. In response to
the General Data Protection Regulation (GDPR) off icially implemented
by the European Union on May 25, 2018, AUO established the “General
Data Protection Policy” in the same year, which includes the General Data
Protection, Data Breach Management Policy, Data Protection Impact
Assessment Policy, and Personal Data Inventory Implementation Policy.
Applicable privacy statement notifications were also developed for various
operational circumstances. In 2019, AUO subsequently updated the “AntiCorruption Compliance Manual”. Responding to the Personal Information
Protection Law implemented in China on November 1, 2021, AUO revised
the privacy notice and data processing consent form by the end of 2021. In
response to the U.S. implementation of the “Uyghur Forced Labor Prevention
Act (UFLPA)”, AUO formulated “Statement of Labor and Human Rights Policy”
and revised the “Supplier/ Subcontractor Code of Conduct” in 2022, illustrating
AUO's commitment to protecting human rights and prohibiting forced labor.
All the aforementioned documents are announced on the company's internal
website under the legal complianc section for employees to follow.

Violation Cases
AUO involved in unresolved anti-trust lawsuits in 2023 include a civil lawsuitwith LG Electronics and its related afﬁliates. The details of these lawsuits aredisclosed in the AUO’s annual report.

Management, Supervision and Prevention Systems
AUO promises to comply with antitrust law of Taiwan and foreign countries, establish a compliance program witheffective implementation and has set up the Chief of Antitrust Compliance, who regularly reports directly to the
Audit Committee with tasks covering the afﬁrming of incentives and system, advocacy, risk assessment mechanisms,
education and effect verif ication and timely response. Through the year-end risk assessment mechanism, we
identify areas with potentially higher risks and modify the corresponding supervision and prevention mechanism
accordingly. AUO’s frontline business divisions and related subsidiaries have appointed representatives to comprisethe compliance committee which quarterly convenes to discuss legal compliance issues including antitrust law, andreview and implement compliance measures. In addition, the Chairman issues compliance messages twice a year,
basing them on real-life cases in the workplace to remind colleagues of situations that may raise legal risks.

Education and Training
AUO has established a multi-tier law compliance education and training system, including mix of online exams,
classroom courses and cross-departmental large-scale training, plus advanced bespoke courses for certain
departments. In 2023, educational training will be held, including newcomer anti-trust compliance training andadvanced courses customized for speciﬁc departments.

Antitrust Compliance training for new employees: all new worldwide recruits, except for
production line workers, are required to undergo antitrust compliance training within 30 daysof commencing their employment.
Customized advanced courses for speciﬁc departments: Online workshops are held for the
manufacturing units, with course content covering conﬂicts of interest, integrity policies,
code of integrity, and conﬁdentiality obligations. Colleagues are encouraged to think about
possible scenarios in practice and strengthen their compliance awareness. The total numberof trainees was 271, with the same number of trainees completed, making the completion
rate 100%.
All employees worldwide (except production line workers,) are required to sign the Antitrust
Compliance Declaration to fully understand the company's compliance policy with the
Antitrust Law, thereby establishing unanimous legal compliance awareness within theorganization. In 2023, the total number of signatories reached 10,843, with a signing rate of100%.

For other cases, see2023 Annual Report Chapter 7

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Appendix2023 AUO Sustainability Report29

1.5 Risk Governance
The global environment is changing at a rapid pace. The challenges faced by businesses are now more complex and diverse as well. The COVID-19 pandemic, changes in the political-economic situation,
climate and energy crisis, as well as emerging risks all introduce new variables that test the ﬂexibility and adaptability of business strategies. AUO uses our sound risk governance organization andmanagement mechanism to identify trends and risks. Proactive action is taken to control risks that may impact on the Company so that we cannot only adapt to the changing circumstances but alsoseek out potential business opportunities.

Risk Governance Policy and Organizational Function
The “AUO Risk Management Policy and Procedure” was formulated by AUO based on international risk
management guidelines. The document serves as the Company’s top guidance principles on risk governanceand culture to ensure the proper implementation of strategic goals and risk control. The Sustainability and
ERM Committee(Note) serves as the top management and decision-making unit within the risk governanceorganization. Risk management activities are carried out by the Risk Governance under the Sustainability and
ERM Executive Committee. The identiﬁcation and assessment of internal and external risks are carried out
every year. These include strategic, business, ﬁnancial, hazardous and emerging risks. Response strategies arealso formulated to enhance the Company’s risk capacity and resilience. In addition, we also regularly convene
meetings to examine each risk monitoring indicator, conﬁrm organizational control over risk response, andshare information on internal/overseas risk events in order to enhance the risk sensitivity of our management
team. The Risk Management Department is responsible for risk management audits. Regular monitoring andauditing activities are also carried out to ensure the effective implementation and continuous improvementof risk management operations. Outcomes are periodically reported to the Board of Directors and theSustainability and ERM Committee. In terms of cultural promotion, we hold risk identification training fordivision-level managers every year to equip all employees with a certain level of understanding on risk. As of2023, we also began training local and international employees on basic risk management concepts.

Board Level
Board of Directors

ReportSustainability and ERM
Committee

Sustainability and ERM
Executive Committee
Risk Governance(Implementation led bytier-1 executive)

Execution Unit
Audit

Risk
Management
Department

1.5.1 Risk Identiﬁcation and Management
AUO has built up extensive experience in risk identiﬁcation and management
after many years of hands-on practice. We use general education, basic, andadvanced training mechanisms to enhance the risk awareness of all employees.
The risk identiﬁcation process is carried out by AUO in the ﬁrst quarter of eachyear. Relevant knowledge such as the Global Risks Report published by theWorld Economic Form and the World Ahead from the Economist is provided
in advance to more than 100 division-level factory managements at AUO units
around the world to help them identify 75 types of risk (e.g. ﬁnancial, humanresources, sustainability, information, manufacturing, R&D, sales, supply
chain, and legal affairs). The managers can use their authority to examine
all of the derivative concrete risk scenarios. We then use the identif ication
outcomes provided by the managers to conduct a qualitative and quantitative
assessment along the three axes of likelihood, magnitude of impact, andmagnitude of control. Risk matrix analysis is also used to sort the risks bypriority and ultimately pick out 10 risks of high concern. These risks are thentracked or reviewed by the Sustainability and ERM Executive Committee. They
may also be monitored to ensure their proper control and to turn crisis into
opportunity.

!
Risk

Identiﬁcation
and analysis

Focused risk
Material topics
investigation
Risk identiﬁcation
Internal manager
assessment

Classiﬁcation

Focused risks,
emerging risks
Medium to highimpact risks
Low impact risks

PDCA
management

Included in risk
management
mechanisms
Monitoring andaudit

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Appendix2023 AUO Sustainability Report30

Annual Risk Identiﬁcation Matrix

High impact & high uncertainty of control

High

5.00

Credit Management
Capital Management
Funds Management

4.00

Corporate Financial Plan/Budget
Board Efﬁciency

3.00

Corporate GovernanceDisaster

2.00

HazardBCP
Climate Change

Strategic

Production Management

Supply Chain
Management

Contract
Management

Prototypeproduction

1.00

System Change Management

Asset Security
Procurement Cost
Tax Planning

0.00

0.00

1.00

2.00

3.00

4.00

Control Uncertainty

Low

Production
Management Plan
Software and Hardware
Licensing and Legality

Raw Material Demand Control
Conﬁdentiality and Data
Protection
Outsourcing
Product Quality Management
Material Shortage/Outage

Financial
Operational

Shortage of Production
Manpower

5.00
High

Response Strategies for Focused and Emerging Risk Topics
AUO is responding actively to constantly-shifting risks by reviewing focused and emerging risks every year (Note). Risk analyses by other professional bodies as well as internal risk identification
information are all taken into account to ensure that risks are considered in a more substantive and comprehensive manner. Focused risks for AUO in 2023 included impact on end-user market frominflation and economic recession, supply chain disruption or shortages, operational disruptions due to electricity and water shortages, and the diverse impacts of climate change; emerging risks
encompasses the uncertain future of De-globalization and Protectionism, personnel shortages or turnover, generative AI raises concerns about misuse and errors. The potential impact of these risks on
our operations is carefully assessed by AUO. Response strategies are then devised so that their impact is minimized through prediction and advance response.
Note: Focused risks are important and short-term risk topics; emerging risks are emerging, medium/long-term and external risk topics.

Focused Risks
Category

Risk Description▐ Decline in end demand due to inflation
and recession risks

Strategic
andﬁnancial

Generaleconomicandindustry
trendsGeneral economic weakness: Systemic
ﬁnancial risk triggered by central banksraising their rates to curb inﬂation andgeneral economic weakness across theworld.
Industry trend weakness: General
economic weakness leading to decline
in end demand.

Impact or Potential Impact

Decline in end demandthat impacts on company
revenue and proﬁts.
Decline in demand
resulting in capacity
adjustments that impacts
on production cost.

Mitigating Actions
Diversiﬁcation of business to expand scope of market and reduce the impact ofindividual markets.
Adhere to the goals of dual-axis transformation through greater vertical
integration of the market. Leverage our extensive expertise in display technology
to integrate software, hardware, cloud and service platforms to satisfy therequirements of diversiﬁed applications in smart mobility, smart education andentertainment, smart healthcare, and smart retail. p.13
Dynamic strategic adjustment of material preparation and production plans.
Monitor prices while maintaining strict control over costs and inventory levels.
Continue to monitor inﬂation and global economic changes.

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Category

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GrowthRisk Description▐ Supply chain shortages
Supplychain

The effects and interference from external
environmental changes such as COVID-19
pandemic developments in China, global
politico-economic situation, natural
disasters, state of global logistics, andstrikes cause supply chain shortages that
result in volatility and instability.

5 AgileInnovation

Subsidiary

Fact
Sheet

Impact or Potential Impact

Production delays due to raw material
shortages or transportation problems.
Delayed delivery of products that impact on
customer satisfaction.
Supply chain or product delivery delays
caused by transportation difﬁculties that
also lead to higher transportation costs.

▐ Power and water shortages
Power or water shortages at the factory
due to factors beyond human control that
impact on production operations.
Business
continuity
Business

China: Regional power shor tages due tofluctuations in raw materials used for power
generation, the impact of extreme climate, andpower dispatching
Taiwan: Power shortages due to increased
demand and inadequate reserve capacity; or
regional water restrictions at the factory due toweather factors or poor water distribution▐ Climate change
ClimatechangeFrequent extreme weather events,
rising temperatures, and changes inprecipitation patterns that lead to
production disruptions, supply chain
disruptions or resource shortages thatin turn impact on product supply andservice delivery.

Impact of energy shortage on production
planning and progress.
Increase in production costs due tounreliable energy.
Industry chain will be impacted if theaffected region hosts the supply chain or an
important customer production site.

Instability in the supply of energy, resources,
and materials caused by climate changethat impacts on the production operationsof the Company and industry chain.
Fluctuations in energy prices and theimplementation of national carbon
reduction quotas that increase operating
costs for the Company and industry chain.
Major disasters caused by severe climatechange that affects the shipping priorities of
the global supply chain.
Customer demands on carbon reduction
and use of renewable energy.
Support of international initiatives.

Appendix2023 AUO Sustainability Report

31

Mitigating Actions

Formulation of concrete supplier sustainability
management regulations and goals. p.63
Monitor the supply situation and changes ininventory levels of critical materials.
Monitor changes in international sea and air
freight. Take risk appetite and risk tolerance into
account by using sea/air shipping times as a key
indicator. Set up risk trafﬁc lights to facilitate rapid
assessment and response.

Strengthen the emergency backup power
capacity and load times to improve equipment
performance. p.78
Set up smart platform for hydrology center forsystematic tracking of water consumption. p.92
Monitor power ﬂuctuations while also taking
risk appetite and risk tolerance into account. Set
up risk trafﬁc lights and prepare response plansfor different scenarios using Taipower’s reserve
capacity, regional power supply frequency andother key indicators.

AUO adopts a ﬂexible sales strategy in order tosatisfy the green requirements of the market.
Progressive realization of renewable energy
and carbon reduction targets through regular
engagement with customers and integration ofCompany resources.
Promotion of climate-related ﬁnancial disclosure
operations to prepare for the ﬁnancial risks caused
by each scenario. p.74
Construct a climate-resilient supply chain by
actively engaging with suppliers (e.g. high-level
conferences, seminars, and courses) to build
consensus and share resources.

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32

Emerging Risk
Category

Geopolitical

Risk Description

Impact or Potential Impact▐ The uncertain future of De-globalization andProtectionism

Changes in the global politico-economic
situation that impact on the strategic andoperational planning of the industry and theCompany.

Regional conﬂicts such as the RussianUkrainian War and the Middle-East that show
no signs of easing.
High degree of uncertainty in the global politiceconomic situation.
Global politico-economic uncertainty due to
US-China relations, rise of emerging powers,
and protectionism.

▐ Human resources and talent shortage crisis
Societal

Low birth rates, intense competition, and rapidchanges in technical requirements all make therecruitment, retention, and cultivation of talentby the Company more challenging.

▐ Generative AI raises concerns about misuseand errors

TechnologicalWith the advancement and utilization ofdigitalization and emerging technologies, therisk of cyber crime and information security
is increasing. These risks include but are notlimited to malicious third-party attacks, data
leaks, malware attacks, identity fraud, andsocial engineering. Such attacks may leadto disruption of company operations, lossof data, compromising of customer data,
damage to brand reputation, as well as legal
and compliance challenges.

Conﬂicts and geopolitical competition
are causing a shift from globalization toregionalization (splitting and restructuringof supply chains) that is forcing businesses
to engage in globalized and distributed
management.

Mitigating Actions

Transition to the Company’s biaxial transformation and strategy to
distribute production sites and investments over different regions.
Activation of geopolitical response programs to dynamicallyassess and track changes in global geopolitical risks. For regionswith high operational importance, assess and devise response
strategies for geopolitical risks that may impact on the Company’sbusiness and operations.

Escalation of geopolitics into regional conﬂict
impacting on operations and causing confusionin the supply chain.

Unﬁlled positions in technical or managementﬁelds impact on business operations andcompetitiveness.
Increase in operating costs from recruitment
and training.

Production disruption: Information security
incidents may lead to system shutdowns
or production disruptions with serious
repercussions for business operations.
Financial loss: Cybercrime may result in serious
ﬁnancial losses such as the cost of ransom
payments or system recovery.
Damage to customer trust and reputation:
Data leaks may damage customer trust in the
Company and impact on brand reputation.

Continued promotion of the “ESG-TALENT” strategy andrethinking of the talent selection, training, employment andretention system to ensure the sustainability of organizational
talent. p.119

Information security management is promoted and enforced
through the Information Security Committee to protect
Company IP, customer data, and enhance employee awarenesson information security in response to evolving cybercrime andgrowing information insecurity threats. p.33

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report33

1.5.2 Examples of Risk Response
Example 1

Example 2
Response to the water situation in Taiwan

There were still water shortages in some parts of Taiwan in 2023. AUO had already set
up a complete response mechanism based on our experience with water shortages
in 2021 and our sound water resource management. The smart platform at the AUO
hydrology center provided plants in Taiwan with full, real-time information on theinternal and external water situation (weather forecasts, water news, reservoir inﬂow
and water level estimates, plant water consumption, water conservation plans andwater-efficiency indicators, water tanker and water well information, supply chain
water situation). The water situation traff ic light system was then used to direct
advance preparations and ensure timely response. AUO also partnered with outside
weather risk management consultants, and referred to the short, medium, and longterm climate analysis/precipitation forecasts provided by meteorologists to help thewater situation team develop and prepare appropriate water response strategies. As aresult, AUO operations were not impacted by the water situation in Taiwan in 2023.

For water resource risk management, see Chapter 3.3 of this Report

Inspection and veriﬁcation ofenterprise risk management operations

AUO began refining our enterprise management operations in 2022. Our existingrisk identif ication, tracking and response capability was enhanced through theintroduction of Key Risk Indicators (KRI) for focused risks of concern to the Company.
Risk control measures are now activated as necessary based on the outcomes ofrisk monitoring. To further enhance our risk management ability, we partnered withexternal consultants to conduct a thorough review of our risk management policies,
rules, systems, and organizational functions based on the TWSE Risk Management
Best Practices for TWSE/TPEx Listed Companies, the Enterprise Risk Management
framework issued by the U.S. Committee of Sponsoring Organizations (COSO) andother standards. We discovered through in-depth discussion with our partner that
there were gaps between our current risk governance operations and the relevant
standards. Improvement proposals were devised in turn for each of the 33 ﬁndings
based on the degree of risk. The latest review ensured that our risk management
measures were aligned with both domestic and international standards. Blind spots
in management were also rectiﬁed. We now plan to conduct similar external audits
every two years to ensure continued promotion of risk improvement activities.
Note: Committee of Sponsoring Organizations

1.5.3 Information Security and Privacy Protection
The security of our employees and partners’ information assets is important to AUO. Information security management is therefore promoted and enforced through our information security
management organization to protect company IP, customer data, and enhance the information security awareness of employees. We are continuing to reﬁne our risk control mechanisms and upgrade
our protective measures to strengthen the information security of the Company.

Organizational Function
The Information Security Committee is the top information security management organization at AUO and reports to the Chairperson. The Information Security Implementation Team under the
Information Security Committee is responsible for implementing all Committee resolutions. As part of our continued efforts to build a lean yet fully-ﬂedged information security team, the “Information
Security Management Department” and “Information Security Technology Department” were established under the Information Security Management Division in 2023. Continued investments arealso being made to strengthen the core information security capabilities of our team. Professional information security qualiﬁcations currently held by team members include ISO/IEC 27001:2022 LA(Information Security Management System Lead Auditor), CISSP (Certiﬁed Information Systems Security Professional), CEH (Certiﬁed Ethical Hacker), CHFI (Computer Hacking Forensic Investigator),
CPENT (Certiﬁed Penetration Tester), LPT Master (Licensed Penetration Tester Master), OSCP (Offensive Security Certiﬁed Professional), CRTP (Certiﬁed Red Team Professional), OSWE (Offensive Security
Web Expert), and ECSA (EC-Council Certiﬁed Security Analyst).

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

34

Information
Security Committee
Chair

Committee
Member(First level
executives)

Legal

Audit

Paul SL Peng
Chairperson

ESH

Frank Ko

Deputy Chair

RD

CEO

OU

BU

CSR

DT

HR

Information Security
Implementation Team
Convener

Chief DigitalOfﬁcerChief Information
Security Ofﬁcer

Organization-wide
Management

Task Forces
ControlTechnology Team

Responsible for information security technology, interface
integration, and supply of information security tools

Education andTraining Team

Responsible for information security culture development
and information security training

Audit andInvestigation Team

Responsible for incident investigation, evidencecollection, and disciplinary actions

Risk Management
Team

Responsible for trade secret risk assessment andinformation security inspection of R&D environments

Product Safety
Team

Executive Director

Individual Unit/Site
Information Security
Representative
Responsible for
enforcing information
security policy

Dedicated Information Security unit

Information
Security
Management
Division

Information
Security
Management
Department

Responsible for the promotion of information security
governance activities and projects within the organization,and serving as the point of contact between internal andexternal concerned parties for information security

Information
Security
Technology
Department

Responsible for the information security technologies
required for the four dimensions of enterprise security,
namely: network security, product security, information
security and supply chain security

Responsible for product safety guidelines, speciﬁcations,and testing, with a particular emphasis on information
security issues related to connected products

In addition, AUO also established the Group Synergy Ofﬁce and the Group Synergy Committee in 2023. The subordinate Information Security and Digital Sub-committee is composed of the heads ofIT and information security from Group companies. The sub-committee facilitates liaising on information security strategies, coordination and cooperation, and integration of Group resources for joint
management of information security risks.
Half-yearlyGroup Synergy Committee
information security digitalconferences

AUO Group Meeting

WeeklyFortnightly

Monthly

Half-yearly

Information Security
Management Division
progress report

Information Security
Management and DevOps
Team project meeting

Information Security
Implementation Teamreview meeting

Information Security
Committee management
review meeting

AUO Meetings

CONTENTS

1 Business
Operation

Material Topics

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

35

Information Security Maturity

Strategy and Targets
An information security strategy and action plan is deﬁned by AUO every year. 2023 marked the second year of the “Zero-Trust Architecture for Strengthening Information Security Resilience” 3-year
program. Through ongoing projects as well as internal and external issues of concern, AUO launched all new actions throughout the company to achieve conformity with ISO 27001 information security
management system standards. Key indicators were also used to monitor improvements under the PDCA cycle to reduce information security risks and enhance the Company’s information security
maturity each year. AUO achieved an information security maturity score of 90.7 and met the annual target of scoring over 85.

ISO 27001 Information Security Management System
Protect Company IP, raise overall information security awareness, create opportunities for mutual win (proﬁt)

PolicyGovernanceTargetRisk management
Information Security Risk

High

Strategy

2012
2013
Awareness Awareness2014
Education

2015
Selfaccountability

Behavior Management
Low

Material Topics

Compliance

2016
Continual
improvement

2017
ISO
certiﬁcation

Low

2018
Intelligent
analysis

Source Management

Maturity of Information Security

2019-2021
Non-landing data

2022-2024
Information
security resilience

One Data

Zero TrustHigh

Major information security incidents that impacted on operations

Risk Assessment and Response
Product-related information security risk is important to customers. The information security risk assessment process for
product projects was established by AUO in 2023 to respond to customer expectations on protection of information during
our collaboration. In terms of information security risk management by the Company as a whole, Red Team and Blue
Team exercises (Note) were launched by AUO in 2023 to examine the overall information security defenses and response
capabilities of the Company. Services and tools such as third-party vulnerability scans, black box testing, white box testing,and source code review are also employed in monthly scans with continuous follow-up of improvements. Up to 134
vulnerabilities were rectiﬁed at internal/external websites/platforms in 2023. In terms of business continuity management, a
total of 55 drills including emergency response drills, business continuity drills, information security response drills, backup
recovery drills were conducted at different levels to ensure that AUO is fully prepared to respond to any risks. There were no
major information security incidents that impacted on our operations in 2023.
Note: In Red Team exercises, an outside information security company is retained to play the role of hackers attacking AUO.
In Blue Team exercises, AUO information departments play the role of the defender during Red Team exercises toverify the effectiveness of information security measures at AUO.

Purchase of Information Security
Insurance for Enhanced Protection
AUO plans to continue purchasing
information security insurance
to transfer information security
risk, reduce potential losses f rom
information security incidents,and ensure that losses f rom
information security incidents at
adequately covered.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

Third-party information security
management platform
A third-party risk management platform was used by AUO to
examine our overall information security risk. Our score of 91 washigher than the industry average of 79.

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary91

AUO information
security rating

2023 AUO information security rating trend

Social Engineering
Exercise

94

88

Appendix2023 AUO Sustainability Report

36

To strengthen the information security awareness of
employees, social engineering exercises and training areconducted by AUO on a continuous basis to prevent againste-mail f raud with company-wide exercises are held every
six months. The concept of collective responsibility on
information security was also introduced. Departments that
did not meet the exercise goals or require improvement
must strengthen their own internal education and training
as well as voluntarily take part in next month's exercise toestablish a cycle for continuous improvement. A total of 12
social engineering exercises were conducted in 2023 witha cumulative participation of 106,848. Due to the frequent
exercises, the fail rate of our employees was just 1.45%.

Participation in social engineering exercises
120,000

82

Average industry rating

93,473100,000

106,848

80,00076
Jan 2023

Apr 2023

Jul 2023

Oct 2023

60,00055,55940,00020,000Strengthening Information Security Awarenessand Protection

Protection ofCore Secrets

Information
Security Education
and Trainin

To protect our industry-leading core assets and maintain our competitive
advantage, AUO strengthened document classif ication measures,
implemented e-mail classif ication reviews, hard disk encryption, remoteconnection watermarking, and two-factor authentication for key internal
systems in 2023. We also strengthened routine management of conﬁdential
information in all units and set up a tracking/auditing mechanism for
conﬁdential information.

AUO implemented company-wide information security awareness, general
education, and specialist training courses based on our expectationof “Security is not complete without you” for employees. A total of 5
information security bulletins and e-newsletters were issued during theyear with a total reach of 82,832 people. We also conducted 32 physical andonline information security classes that were attended by 12,584 people.

0
2021

2022

2023

Ensuring the Information Security ofCustomers
Information Security Management for Automotive Products
AUO is working actively to expand into the automotive products market. To meet the
expectations of our customers in the automotive market, AUO made adjustments to
our information security management practices in 2023. In addition to maintaining
our ISO 27001 (Information Security Management System) certif ication, we also
conducted an information security assessment in accordance with the “Information
Security Assessment (ISA) process of the German Vehicle Manufacturers Association(VDA) and passed a third-party assessment by TISAX (Trusted Information Security
Assessment Exchange) with a rating of AL3 (very high level of protection). The scopeof assessments encompassed AUO Head Off ice, Xiamen site, Slovakia site, andGerman ofﬁce to ensure that AUO conforms to customer expectations on automotive
information security management capability in the global automotive market.

1 Business
Operation

CONTENTS

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

37

Software Supply Chain Safety
Software development projects for AUO products all comply with the Secure Software
Development Framework (SSDF) issued by the U.S. National Institute of Standards andTechnology (NIST) in terms of regulatory standards as well as the processes for customer
requirement analysis, risk assessment, security design and development, verification andcommissioning, and incident response. The Information Security Management Division also
provides product security testing tools and risk consultation services for designated softwaredevelopment projects.

Supply Chain Information Security
Supply chain information security chain is one of the key issues of customer concern.
To strengthen information security management in the supply chain, the Supply Chain
Information Security Policy was formulated by AUO in 2023 and published in the Suppliersection of the AUO website. A set of Supplier Information Security Guidelines were alsoestablished and written into supplier order documents to ensure supplier awareness andcompliance with AUO regulations when orders are signed. AUO began using questionnaire
surveys and in-person visits to engage in sustained information security exchanges with
suppliers in 2020. We strive to apply the AUO experience to helping supplier partners reﬁnetheir information security management organization and system.

Average scores of info-security self-assessment
2021

2022

I

H

C

60
65
70
80

G

75
85
90
95

E

100

F

Outside information security experts are invited by AUO to provide their guidance throughin inter-company collaboration on information security within the Group. We also set up
system platforms for automated monitoring of information security risks, establish reporting
processes for information security incidents, and share professional learning resources on
information security. A total of 2 events were hosted in 2023 with outside information security
experts invited to share their insights on topics such as enterprise information security pain
points and response strategies, supply chain and boundary security from the perspectiveof Red Teams and real-world investigations, and adjusting information security strategies
through Red Team exercises. Group companies exchanged their own real-world experienceson information security as well. In 2023, 18 AUO afﬁliated companies were incorporated into
the AUO Group risk monitoring platform. The average score of indicators were 85.44 overall.
In 2023, the AUO Group conducted an ISO 27001:2022 Lead Auditor education training in a
package course format, with a total of 16 trainees successfully completing the training andpassing the examination to receive the original completion certiﬁcates issued by the CQI/IRCA
certiﬁed training institution of the Royal Society for Quality in the UK.

AUO is a co-founder of the “Taiwan Chief Information Officer Alliance” (CISO). We are also
member of its Development Committee and play an ongoing role in CISO activities. We
hope to enhance the information security resilience of the Taiwanese industry and promotesustainable corporate development. As the head of the opto-electronics industry team fordevelopment of supplier information security management regulations in 2023, AUO helped
establish supply chain information security resilience in the opto-electronics industry.

A

D

Group Information Security Zone Defense

Enhancing Information Security Resilience in the Industry

2023

B

Expanded InﬂuenceA

Info-Security Policy andOrganization

B

Regulation
ComplianceC

Business Continuity
PlanD

Info-security Incidents
Management

E

Documents Control

F

Telecommunication andOperational Security

G

Entity andEnvironmental Security

H

HR SecurityIConﬁdentiality
Requirements

Promotion of Industry-University Collaboration

AUO is a long-term partner of “Girls in CyberSecurity (GiCS) (Note) and sponsored the 3rd
GiCS competition for the third year in 2023. The goal of GiCS is to help students learn about
information security, promote grassroots information security education, and encourage
women to choose a career in information security. To fulfill our commitment to providing
outstanding students with matchmaking opportunities for internships and job openings,
students that excel during the competition can take part in our A+ Summer Internship
Program. A wealth of learning content is provided by AUO over the summer break to help
students learn about information security management practices within enterprises as wellas cultivate their information skills and project management ability. The students settled into
their new roles within the organization during their internships. At the end of the internship,
the students were ﬁlled with anticipation on a future career in information security as well.
Note: GiCS is sponsored by the National Science and Technology Council and Ministry of
Education, and organized by the Taipei Computer Association and the National Centerfor High-performance Computing of the NAR Labs. As the president of Taipei Computer
Association, AUO Chairman Paul SL Peng has long supported the cultivation of
information security talent through this event.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

38

Privacy Protection
Privacy protection is enforced by AUO for customers, suppliers, employees and all stakeholders as a key component in maintaining the trust of our stakeholders. We adhere to all laws and regulatory
requirements on privacy and information security during our collection, storage, processing, dissemination, and sharing of personal information. In terms of information security, the Information Security
Policy was formulated to protect stakeholder information. Information security management is promoted and enforced through the information security management system and the Information
Security Committee. AUO has integrated and strengthened our information security management system to establish a standardized, documented, and systematic management mechanism for
enforcing information security policy, protecting customer data, protecting customer IP, strengthening our information security environment and information security incident response capability, andmeeting the target metrics and indicators of our information security policy.
Protection and management of personal information at AUO is governed by the “Personal Information Protection and Management Regulations” and “Privacy Statement” that serve our top guiding
principles on protection of customers’ personal information. We also set up an EU GDPR (General Data Protection Regulation) and China PIPL (Personal Information Protection Law) on our internal
website to provide employees with references to related policies and ofﬁcial documents so they can actively respond to the regulatory requirements. New employees must complete the GDPR course
within 30 days of starting at AUO to establish a basic understanding of personal information protection and how it applies during business operations, such as the collection, processing, and use ofcustomers’ personal information required for business or other necessary interactions.
Audit unit will conduct random audits of personal information management. If personal information is leaked, the head of the department involved should immediately notify the Personal Information
Committee for the executive director of the committee to set up a single point of contact. The emergency response center must also be convened and set up. For serious incidents, the Legal Affairs unit
will notify the competent authority for an investigation to be launched. Once the incident has been investigated by the Committee, the department involved should use appropriate means to notify
the people affected as soon as possible. Once the incident has been resolved, and incident prevention review conference is to be convened to discuss the emergency response measures related to theincident.

Sanctions imposed by thecompetent authority forserious violations of customers’
personal information
protection by AUO in 2023

0 caseNumber of substantiatedcomplaints regarding violationof customers’ personal
information protection received
by the AUO privacy mailbox(privacy@auo.com) in 2023

0 caseFor The AUO Privacy
Statement, see
Support section of the AUO
websiteExternal Acknowledgments
2023 SGS IT Awards - Automotive Information Security Management Excellence Award
AUO has been actively investing in information security for many years. Information security planning and controls have been carried in accordance with the guiding principles of the Cyber Security
Framework (CSF) established by the U.S. National Institute of Standards and Technology (NIST). Protective activities are integrated into throughout our routine operations so that everyone at AUO plays
a part in ensuring information security. AUO has integrated and adopted international standards from each ﬁeld to manage information security risks in our business processes in a more systematic andcomprehensive manner. AUO has so far obtained ISO 27001 information security management system certiﬁcation and is now expanding into a variety of other ﬁelds including smart transportation andsmart healthcare. Other international information security standards or assessments completed by AUO included TISADX AL3, ASPICE PAM 3.1, ITAF 16949, ISO 26262, and ISO 123485 (Note).
Note: TISAX AL3 (the highest rating for information security management systems in the automotive industry); ASPICE PAM 3.1 (test standard for software process improvement and capability in the automotive
industry); ITAF 16949 (automotive quality management system); ISO 26262 (autotronic functional safety standard); and ISO 13485 (quality management standard for medical devices).

2

Sustainable Management

2.1 Sustainability Governance

2.3 Customer Relations

2.4 Responsible Supply Chain

2.2 Stakeholder Management

2.3.1 Product Quality

2.4.1 Management Strategy

2.3.2 Customer Service

2.4.2 Management Process

2.2.1 Stakeholder Cultivation

2.4.3 Low-carbon Supply Chain

2.2.2 Material Topic Analysis

Annual Highlights

Material Topics◆ Stakeholder◆ Technological innovation and market strategy

Continuing to implement our Stakeholder

Launching an All PFAS Free project,Engagement Plan with over 1,000

we pledge to completely phase out persistentchemical substances by 2026 to protect theenvironment and ensure health safety

interactions were completed in 2023

Maintaining good negotiation with our value
chain partners, we have achieved CDP Supplier
Engagement Rating Leader A-

We update our Supplier/Contractor Code of Conduct,
introducing the importance of biodiversity,forest, soil protection, carbon
reduction and energy conservation,
extending AUO's environmental protection
philosophy to our supply chain◆ Supply chain management

Meeting our customers' demand for green products,
shipments of recycled materials and low-energy
consumption products exceed

22 million pieces

We expand the scope of conﬂict mineralmanagement, in addition to the original tungsten,tin, tantalum, and gold, we add

cobalt and mica, fulﬁlling our commitment to
conﬂict-free mineralsOur Vision
AUO ﬁrmly believes that the company’s sustainability requires balanced development in economies, environments, and societies. By offering mutual beneﬁt and achieving common progress withstakeholders through multiple channels, we realize our vision of “Go beyond CSR and create shared values.”

Target and ProgressMaterial topic

Achieved

2023
Target

1.4 million pcs

performance:
4.22 million
pcs

Shipment volume of
special-speciﬁcation
products of energyconservation

13.5 million pcs

performance:
18.55 million
pcs

The number of
products thatprovide green
information, mainly
monitors andnotebooks

The productsof designatedcustomer, theproductivity ofpromising to use
renewable energy

Customer rating
satisfaction ratio

15

Communication

91%

2024
Target2025
Target2026
TargetResponses

We have introduced recycled materials for product components
such as plastic frames and metal backplates, and offers solutions
with different recycling rates for customers to choose from. 4.22
million pieces were shipped in 2023.

1.8 million
pcs

2.4 million
pcs

3 million
pcs

2.3.2
Customer
Service

We continually develop new technologies and materials to reduce
the energy consumption of their products. In 2023, 18.55 million
units of energy-saving special-speciﬁcation products were shipped.

15 million
pcs

16 million
pcs

17 million
pcs

2.3.2
Customer
ServiceThrough various channels such as high-level meetings, project
meetings, and irregular meetings, we deeply understand the needs
and objectives of our customers, provides customized solutions,and conducts professional discussions and technical exchanges
in the process. In 2023,we provided customers with 111 products
covering green technologies.

20

30

40

Foreword –CSR EPS
2025 Goals

2023 Our actions

Shipment volume
of products using
recycled materials

performance:
111

performance:Continuously
discussing
with speciﬁcclients

performance:
98.14%

Not Achieved

AUO is striving to achieve RE100 by 2050, continuously seeking
renewable energy through various channels. In 2023, our total
green electricity usage approached 100 million kWh, accountingfor 2.2% of the RE ratio. We will continue to discuss cooperationplans with speciﬁc customers to meet their expectations for using
renewable energy products.

We continually maintain a close working relationship with ourcustomers. An annual customer satisfaction survey is conducted.
The issues to be improved will be personally examined by senior
executives in management review meetings, and subsequent
improvement strategies will be proposed and implemented by the
responsible departments.

Meet customer requirements

92%

93%

94%

2.3.2
Customer
Service

2.3.2
Customer
ServiceAchievedMaterial topic

LCD local purchaseratio

LCM local purchase
ratio

2023
Target82%

75%

Ratio of key directmaterials withdiverse source
development plans

91%

The number ofkey suppliers
implementing
risk management(accumulative)

18

The average scoreof the key supplier
ESG scorecard has
increased every year
(Base year: 2023)

Inventory

Ratio of supplierswith high electricity
consumption who
have obtained ISO
50001 certiﬁcates forenergy management
systems

50%

Carbon reduction
ratio of key suppliers(Base year: 2021)

2%

Not Achieved

2024
Target2025
Target2026
TargetResponses

performance:81%

Due to some material supply constraints, non-local suppliermaterials are used. 81% of the LCD displays are procured from thearea where the production base is located. We will continue todevelop local suppliers to increase the proportion of local purchases.

82.7%

82.7%

82.7%

2.4.2
Management
Process

performance:
75%

75% of the LCD displays are procured from the area where theproduction base is located. We hold meetings each month to review
the local procurement situation and will continue to develop local
supplier materials to increase the proportion of local purchases.

75%

75%

75%

2.4.2
Management
Process

Committed to diversifying its sources of supplies, we proactively
develop diverse sources for key direct materials, carrying out
continuous veriﬁcations to avoid supply disruptions and enhance
the resilience of our supply chain. As some materials are still underveriﬁcation and have not met the required standard, we plan toexpedite the veriﬁcation of alternative materials and improve therate of material optimization.

97%

97%

97%

-

We regularly audit our key suppliers based on ISO certiﬁcation,
operational continuity plans, and other management processes.
We have conducted audits on 18 suppliers cumulative in 2023.

36

54

60

2.4.2
Management
Process

We have designed ESG Scorecard, which includes 15 themes
related to the environment, society, and governance, to evaluate
our suppliers, thereby encouraging the realization of sustainable
management in the supply chain and further reducing operation
risks. The ﬁrst year of implementation is set to be 2023, with anaverage supplier score of 60.9.

Increase by
3%

Increase by
5%

Increase by
8%

2.4.2
Management
Process

performance:
54.54%

Based on their electricity usage and emissions, there will be 33 highelectricity-consuming suppliers in 2023, of which 18 have alreadyobtained the ISO 50001 Energy Management System, accountingfor 54.54% of the total.

75%

97%

-

2.4.2
Management
Process

performance:
27.6%

Affected by the overall market demand, our key suppliers reduced
carbon emissions by 27.6% in 2023, far exceeding the target of
reducing carbon by 2%. We will continue our efforts to follow the
carbon reduction path of key suppliers.

4%

8%

12%

2.4.3
Low-carbon
Supply Chain

2023 Our actions

performance:
79%

performance:
18

performance:
Inventorycompletion

AchievedMaterial topic

Number of suppliers
working together on
ESG

The number of key
suppliers who havecompleted the CDP
climate change
questionnaire has
increased every year
(accumulative/
base year: 2019)

2023
Target60

15

Not Achieved

2024
Target2025
Target2026
TargetResponses

performance:
60

AUO and key suppliers jointly commit to the carbon reduction
target, and key suppliers must disclose carbon emission
information audited by third parties. 60 key suppliers havecompleted the greenhouse gas inventory certiﬁcation.

70

80

90

2.4.3
Low-carbon
Supply Chain

performance:
17

AUO and key suppliers jointly commit to the carbon reduction
target and require key suppliers to participate in the CDP climatechange questionnaire, continuously improving through theevaluation system. By 2023, 17 key suppliers have completed it.

20

25

35

2.4.3
Low-carbon
Supply Chain

2023 Our actions

2024
Target2025
Target2026
Target

The number of international exhibition
participations

6 sessions

6 sessions

6 sessions

Annual growth rate of LinkedIn followers

20%

20%

20%

The number of featured articles

4 articles

5 articles

6 articles

Material topic

2023 Our actions

This is a newly established goal, the results of which will be disclosed in the 2024
AUO Sustainability Report.
Implementation of compliant information
disclosure processes (Note 1)

Implementation

Obtain representative management
system certiﬁcation categories (Note 2)

10 items

11 items

12 items

Supplier Growth Courses(accumulative/base year: 2019)24 sessions

28 sessions

32 sessions

Note 1: This refers to the process of ensuring appropriate and accurate information is provided through internal communication, review and publication.
Note 2: Representative management systems include ISO 9001, IATF 16949, QC080000, ANSI/ESD S20.20, ISO 17025, ISO 27001, ISO 14001, ISO 46001, ISO 50001, ISO 45001.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report43

2.1 Sustainability Management Operations
Sustainability Organization & Operations
The Sustainability Committee was established by AUO at the end of 2013 as the top governance body for sustainable development. In 2018, the Sustainable
Development Ofﬁce was created on the strong foundations built up by AUO over the past decade to oversee sustainability policy. In response to global climate issues
and the trend towards net zero carbon emissions, the AUO Sustainability Committee was reorganized and promoted to become the ESG and Climate Committee
at the end of 2021. The new Committee is not only responsible for realizing the AUO CSR EPS 2025 Goals but also for carbon missions in the environmental, social,and governance aspects with achieving Net Zero by 2050 as the core objective. AUO seeks to respond to stakeholder concerns on the environmental, social, andcorporate governance aspects in a proactive manner as well as promote globalized business risk management and response strategies in order to realize the goalof sustainable management. The Board of Directors has now passed the upgrading of the “ESG & Climate Committee” to “Sustainability & ERM Committee.” A“Sustainability & ERM Executive Committee” that reports to the “Sustainability & ERM Committee” has now been set up as well.

Sustainability & ERM Executive Committee

Please see
1.3.5 Sustainability
and ERM
Committee

Board

Sustainability & ERM Committee
Chairman & 3 independent directors
Dedicated unit
CSO

Sustainability & ERM Executive Committee
Chairman & 9 senior-level executives

ESG Mission

Carbon Mission

Technology
Sustainability

Business
Sustainability

EnergySustainability

Manufacturing
Sustainability

Supply Chain
Sustainability

Corporate
Commitment

Risk
GovernanceTechnology
Application

Product
Value

Affordable andClean Energy

Green
Manufacturing

Supply Chain
Co-prosperity

Citizenship

Risk
Management

CarbonTechnology

CarbonBusiness

EnergyDevelopment

Mitigation
Adaptation

Value Chain
Management

Green Education
Partnership

Stakeholders
Engagement

Stakeholders
Management

TCFD

Cross function operation: Circular Economy Working Group Energy Saving Working GroupESG Digital transformation Working Group Plastic Working Group

Organizational Operation
Providing reports or making crucial decisions during biannual board or
strategic meetings. In 2023, a total of 7 board and strategic meeting reports
were delivered.
The chairman serves as the Chairman, and senior-level executives act aschairs of various subcommittee groups. They collaborate across departments
to integrate strategic policies and resources, with overall coordination andpromotion led by the CSO.
Setting up cross-functional operating working group: Circular Economy
Working Group, Energy Saving Working Group, ESG Digital Transformation
Working Group, Plastic Working Group.

Goal and Vision● Practicing the 2025 CSR EPS Goals aligned with the
SDGs● Monitor and govern operational risks, gain insight
into business opportunities, and accelerate biaxial
transformation● Invest in climate adaptation and mitigation actions,build a low-carbon value chain, and move towards
net zero emissions

Implementation
Sustainability & ERM Executive Committee
convenes quarterly meetings to discuss the longterm vision and policy, review the progress of thegoals, promote and implement the Company's
sustainable development.
Monthly dialogue between sub-committees todiscuss all ESG program plans, establish shortand medium-term goals, and regularly track
implementation results.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

2.2 Stakeholder Management

Appendix2023 AUO Sustainability Report

Customers

2.2.1 Stakeholder Cultivation
Nine key stakeholders have been identiﬁed by AUO in accordance with AA10000 SES
and GRI Standards based on the elements of dependence, responsibility, impact,
diverse perspective, and tension. Through the Stakeholder Sub-Committee under the
Sustainability & ERM Committee, the six functional teams led by the CEO promotes
stakeholder cultivation programs and engages in inter-department exchanges on
an ongoing basis. The status of stakeholder engagement is constantly reviewed
by AUO and internal resources rapidly marshaled to provide a targeted response.
Material topics as well as the implementation of sustainability goals and targets are
dynamically examined as well in an effort to meet stakeholder expectations.
Customized stakeholder cultivation programs are promoted by AUO in accordancewith the three principles of augmentation, cooperation, and co-creation. Internally,
we are continuing to cultivate front-line spokespersons for corporate sustainability.
Externally, the Sustainability and Risk Implementation Committee and spokesperson
are used to convey key information on AUO through a variety of interactive methods
including online, offline, formal and information. We maintain a positive two-way
relationship with stakeholders, listen to outside voices, and convert them into impetus
for continuous progress at AUO.

Stakeholder Engagement Outcomes
Maintaining constructive communication and interaction with stakeholders isimportant to AUO. We listen to stakeholder concerns, opinions, and respond whenappropriate. AUO used the nine key stakeholders to def ine 10 stakeholder types(customers are split into the Display and Energy BG) and a total of 136 targets forcultivation. An engagement warmth radar map was also generated based on theinteraction warmth rating to assess the outcomes of stakeholder communicationplans. More than 1,000 interaction sessions were accumulated in 2023. Overall warmth
rating was rated as 4.54, falling between friendly and positive & proactive.

Employees

Suppliers

Government/
Academic Experts

9
Stakeholders

Media

Investors

Students

NGOs

Communities

Stakeholder Engagement Warmth Rating
NPO
Students

5.00

4.63

Investors

4.61

Suppliers

Media

4.46

4.38

Overall
warmthrating

4.54

Employees

Communities

4.93

4.67

Government/
Academic Experts

4.59

Energy Customers

Display Customers
4.25

4.08

44

CONTENTS

1 Business
Operation

2 Sustainable
Management

Engagement focus

Investor

Customer

SupplierMedia

Academic/
Experts

Proactively communicating withinvestors following the principleof openness and transparency,
demonstrating the capacity fortransformation and sustainable
performance. By actively
engaging in dialogue withinvestors and promptly updatingthem on operating conditions,concerns can be effectively
reduced.
Under the biaxial transformation
strategy, we continue toprovide customers with highvalue-added products andsolutions, meeting their needs
and expectations throughcommunication meetings andsatisfaction surveys.

Uphold the spirit of growing
together with suppliers, promoteseveral cooperation projects, andshare AUO experience throughaudits and group learning
courses; grasp the states ofsuppliers with platforms andcreate a stable supply chain.

Actively communicate the biaxial
transformation and the progressof sustainable development with
relevant stakeholders.

Inject R&D energy throughexchanges between industry,
government and academia.
When dealing with all kinds ofissues, the expert opinions areactively consulted, and relying
on the external professional
viewpoints to quickly grasp thetrend of the topic, and accurately
respond to external needs.

3 Environmental
Sustainability

4 Inclusive
GrowthCommunication channel● Annual shareholders’meeting (yearly)● ESG Roadshow (yearly)● Investor brieﬁngs (quarterly)● AUO website investor
relations (irregularly)

5 AgileInnovation

Subsidiary

Topic of communication

Biaxial s transformation
strategy, Green ﬁnance, ESG
strategy and achievements,
Energy business strategy,
Risk issues communication

Sustainable product,
Circular economy,
Renewable energy business
opportunities● Customer audits (irregularly)● Co-prosperity course(irregularly)● Project meeting (irregularly)● Supplier audits (irregularly)● Supplier CSR Portal(irregularly)

Circular economy, Netzero carbon, Emissions,Operating risk, Stablesupply chain● Complaint mailbox(irregularly)● Exhibitions (irregularly)● Press conference (irregularly)● Press release (irregularly)● Social media (irregularly)● Expert meeting (irregularly)● Conferences (irregularly)● Mailbox (irregularly)

2023 AUO Sustainability Report45

Key achievements in 2023

● Secured long-term sustainable performance-linked ﬁnancepartnerships with 12 banks, including Bank of Taiwan● Continuously communicating biaxial transformation strategy(including BHTC acquisition) to investors to expand energy business
investment● Held an ESG Roadshow to discuss ESG issues and performance withinstitutional investors● Project meeting (yearly)● Customer service website
system (irregularly)

Appendix● Ranked in the top 5% of the Taiwan Stock Exchange Company
Governance Evaluation● Mailbox (irregularly)● Customer satisfaction survey(monthly)

Fact
Sheet

Operating performance,
Biaxial transformation
strategy, ESG Brand

Technology R&D, Producthealth and safety,
Environmental safety andhealth practice, Industry–
academia cooperation● Continuously cooperate with clients on products containing recycledmaterials, two display panels have obtained UL 2809 certiﬁcation● Promote energy-saving product solutions● Conduct approximately 30 meetings, discussing with clients about
recycled materials, product footprint, and product carbon reduction
strategies.

● Hosting the 2023 CSR Coprosperity Conference, advocating with
supplier partners towards plastic neutralization.
● Completed carbon reduction brieﬁng meetings with 60 key suppliers.
● Expanded 42 circular economy supply chains, with 98% completionof third-party certiﬁcation of recycled materials.
● Conducted 94 sessions of supplier meetings for seamless
communication with suppliers.

● 60 ESG-related news exposures● Attend at least 8 exhibitions● More than 150 instances of industry-government-academia
exchanges● Establishing research and development centers at NTU, NTUT, NYTU,
and NCKU to promote talent exchange and cooperation between
industry and academia.
● Each site separately communicates with government units on ﬁresafety, environmental protection, health and safety, and emergency
response, and shares experiences.

CONTENTS

1 Business
Operation

2 Sustainable
Management

Engagement focus

NGO

Proactively collaborate with
NGOs and social enterprises topromote projects, combining
their expertise and enthusiasm
to expand the project's impact.

3 Environmental
Sustainability

4 Inclusive
GrowthCommunication channel● Project meeting (irregularly)● External seminar (irregularly)● AUO Foundation (irregularly)● Mailbox (irregularly)

5 AgileInnovation

Subsidiary

Topic of communication

Fact
Sheet

Appendix2023 AUO Sustainability Report

46

Key achievements in 2023
● Promote sustainability literacy scholarships, applications werereceived from 1,600 junior high school students and 787 elementary
school students

Environmental education
promotion, General scienceeducation promotion, Social
welfare practice● Sustainability training program completed and executed 15 sets ofspecial topics● DADA's Magic Science Camp online course allows students to receive
popular science education anywhere● Collaborate in remote township development projects, conducted
5 environmental education courses in Taichung and 5 DADA
Elementary School courses● Internal publication (halfyearly)

Employee

Caring for employees' physicaland mental wellbeing andfocusing on their welfare
contributes to shaping a friendly
workplace. Create a sustainableinternal environment to foster aculture of sustainability within
the company.

● Welfare committee(quarterly)● Business brieﬁngs (quarterly)● Labor– management
conference (monthly)● Internal mailbox/Complaints
and consultation hotlines(irregularly)● Convene 4 labor-management meetings
Business operations,
Charitable activities● Convene 4 Welfare Committee meetings● Invite the Company's internal clubs to engage in public welfare
activities that include the Wish Program, mountain cleaning, andbeach cleaning● Club activities (irregularly)● Questionnaire survey(irregularly)

Student

Community

Help students experience theworkplace early through the
GOLF Alliance and Summer
Internship Program; actively
recruit outstanding talents
through campus recruitment.

Actively communicate withneighbors in the community,
shorten the distance, and visit
community representatives
regularly; and build an educational
ﬁeld within the factory area topromote environmental andcultural learning in cooperation
with neighboring campuses.

● A+ Summer Internship
Program (yearly)● Campus Recruitment (yearly)● GOLF Platform (irregularly)● Project meeting (yearly)● On-site visits and care(irregularly)● Good-neighbor activities(irregularly)● Factory complaints hotline(irregularly)● Mailbox (irregularly)

Industrial Internship,
Employment and Beneﬁts,
Brand Image

Cultural education
promotion, Popularscience and environmental
education promotion,
Optoelectronics projectcommunication, Plant
environment maintenancecommunication● Organize or participate in 5 or more campus recruitment briefingsand campus expos● 20th A+ Summer Internship● Continue to promote the GOLF program to help interns keep up with
the industry● Over 60 community neighborhood collaboration and communication
sessions have been conducted● Environmental education courses developed in collaboration withneighborhood teachers, disseminating knowledge about water
resources and zero carbon emissions● Collaboration with the Samgabsui Water Environment Education
Center to promote environment education● Continuous communication with the neighborhood in photovoltaic
case ﬁelds

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report47

2.2.2 Material Topic Analysis
Materiality Assessment Process
Materiality analysis is conducted by AUO every year. The appropriateness of issues are examined against global sustainability trends and the GRI Guidelines. Surveys are used to understand stakeholder
concerns on the Company’s performance in the environment, social (including human rights), and corporate governance aspects. At the same time, a double materiality assessment method wasdeveloped for assessing the business impact of ESG issues on the Company through AUO managers and key supply value chain partners. For external ESG impacts on sustainability, we also used the
ESG impact assessment methods developed by the GRI 3: Material Topics from the GRI Universal Standards 2021, the Value Balance Alliance (VBA), the “Impact-Weighted Accounts” of Harvard Business
School, and other organizations to construct an impact-based materiality analysis process for identify material topics.

Topic Identiﬁcation

Questionnaire Survey

Sustainability
Management
Department

Degree of Concern
Questionnaire
AUO Engagement Targets

Sustainability Rating/Standard
Stakeholder
Communication
Outcomes
Policies/ Laws andRegulations
Sustainability Trend
Report/Reporting

Dynamic Materiality

Gathering of
Sustainability Trends andTopicsIndustry Trends

No more than 20%
new topics to ensure
continuity of topics for
tracking

Dual Materiality

New topics added in
response to trends

Degree of Impact
Questionnaire
Head of Division/Customer/
Supply Chain
Assess the ﬁnancial impactof each topic on internal
operations

Topic Approval
To balance ESG
development, the 18
topics were divided
into 6 topics per
aspectDistribution of questionnaire
on degree of concern formaterial topics and 100%
recovery

Outcome Analysis

Concern Analysis
Statistical analysis on degreeof concern for material
sustainability topics among
the 9 key stakeholders

Impact Severity
Analysis
Measure internal importanceof each topic through internaland value chain feedback

Matrix Analysis

Approval of Topics

Response/
Set Management Targets

Dedicated Unit
Collate and present results ofanalysis to CSO

Stakeholders
Sub-committee
Report to the chairof Stakeholders Subcommittee (CEO) andconﬁrm material topics

Sustainability and ERM
Committee/ Sustainability and
ERM Executive Committee

Sub-Committees
Respond to material
topic and set short,medium and long-termtargets (at least 3 years)

Sustainability and ERM
Committee/ Sustainability and
ERM Executive Committee

Track and manage each
sub-committee’s targets
and for material topics
and achievement status

Approval of material topics
and report to the Board
Dedicated Unit
Sustainability Impact
Questionnaire
Sub-Committees

Heads of units highly
correlated with ESG
Evaluate the signiﬁcance of
impact from each topic for
positive/negative external ESG
impacts

ESG Impact Analysis
Assess signiﬁcance of external
impactAssign approved material
topics to their respective
sub-committees and set
targets

Response to stakeholders
through corporate
sustainability report,
CSR website and otherchannels

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report48

The outcomes of the 2023 materiality analysis led to the identiﬁcation of 9 key sustainability topics that were conﬁrmed by the CEO and approved by the Sustainability & ERM Committee. The setting ofrelated targets and implementation outcomes were also reported to the Board of Directors. The outcomes of the analysis were incorporated into Enterprise Risk Management (ERM) to become the core
topics in AUO's promotion of the sustainability roadmap and setting of short, medium, and long-term goals.

9 key

Identify

MonitortrendsGathersustainability
topic trends

stakeholders
18
topics136

Questionnaire
surveyConduct degreeof concern
surveys, (internal)
business impact
survey, and(external) ESG
sustainability
impact survey

Analyze

OutcomeanalysisAnalyze survey
results anddecide onmaterial topics

target stakeholders
178
managers andcolleagues
20
ESG task force
members

9
material topics
31 corresponding
GRI topics

Management
objectives

ReportSet short,medium, andlong-term
targets36
sustainability goals

Based on the AA10000 Stakeholder Engagement Standard (SES), 9 categories of stakeholders were identiﬁed throughopen discussions, including government experts, suppliers, customers, NGOs, media, employees, investors, and local
communities. To ensure harmonization with international sustainability trends, AUO used domestic/international
peers, benchmark sustainable enterprises, major investor ratings, and international sustainability disclosure standards
to identify 18 ESG topics.

Questionnaire surveys were conducted for the 18 topics on degree of stakeholder concern, impact on company
operations, and external sustainability impact.
AUO surveyed stakeholders including employees (30 responses), customers (18 responses), suppliers (22 responses),
investors (9 responses), government (35 responses), NGO/NPO (7 responses), the media (4 responses), the community (4responses), and academia (7 responses) to determine their degree of concern for ESG topics. A total of 136 stakeholders
took part in the survey.
In terms of business impact, 178 managers and employees took part in the materiality analysis to assess the impactof each sustainability topic on “revenue growth, employee cohesion, customer satisfaction, and business risk.” In
response to GRI 3: Material Topics, AUO used Impact Valuation to assess upstream, AUO and downstream products
and services. 21 economic, environment, and human (rights) impacts relating to AUO were identiﬁed. 20 managers
and employees then assisted with identifying signiﬁcant impacts and sustainability topics based in terms of positive/
negative, actual and potential, and reversibility.

The risk impact assessment process was used to identify and analyze the signif icant impacts of ESG topics.
Priority determined through the material topic matrix was then then used to select “Sustainable governance
operation, Technological innovation and market strategy, Business risk, Circular and clean production, Supply chain
management, Sustainable products, Climate change, Talent recruitment and retention, and Stakeholders” as the 9material topics.
The scope of the material topics’ impact on the AUO supply chain were identif ied in accordance with the GRI
Standards. Internal information, data and management approach were then gathered and disclosed in accordancewith the reporting requirements.

AUO set short, medium, and long-term 3-year targets for each of the 9 material topics and competent units assigned
to serve as their advocates. Target progress and completion rates are examined annually in accordance with the
management approach to put the roadmap for sustainability management into practice.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

49

Risk Impact Assessment Process

Deﬁning Positive and
Negative Impacts

Signiﬁcant Impact Analysis

Sustainability Issues Affecting
Signiﬁcant Impact Analysis
Impact degree:
extremely high9 Signiﬁcant Impacts

21 Impacts
Probability

Positive● Sustainable
governance
operation● Business risk

Economic:
Industrial technology development
Creating upstream value
Enhancing investor's ﬁnancial capital

People/Human rights

ImpactEconomic Environment

Positive

4 items

2 items

7 items

Negative

1 item

4 items

3 items

Environment:
Product environmental beneﬁts
Renewable energy
People/Human rights:
Improving employee's welfare● Circular and clean
production● Climate change

Impact degree:high● Supply chain
management● Sustainableproducts● Technologicalinnovation andmarket strategy● Biodervisity● Stakeholder● Talent recruitment
and retention

Negative● Water resourcesmanagement

Severity
Environment:
Resource consumption
Extreme climate
Procurement causing environmental
impactImpact assessment source● VBA Value Balance● Alliance Harvard Business School
Impact Weighted● London Benchmarking Group, LBG

Impact degree:
signiﬁcant● Integrity● Energy
management● Human rights andlabor relations

Severity=1
Degree

2
+

Scope

3
+

Irremediable

Impact degree:
not relevant● Diversity and equal
opportunity● Occupational healthand safety● Social cohesion● Social
engagement

CONTENTS

2 Sustainable
Management

1 Business
Operation

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

50

Material Topic Matrix
The materiality analysis process is used by AUO to sort each topic by priority based on degree of stakeholder concern for ESG topics, degree of impact from each ESG topic on organization operations,and degree of impact on external sustainable developments in the economy, environment, and human (rights).

E

Environment

S

SocialG

Governance

Stakeholder Concern for ESG Topics
Strongly
concern (5)No concern (0)Ranking

External sustainability impact

Circular andclean production

Sustainable
governance operation

Technological innovationand market strategy
Supply chain
management

Sustainableproducts

Stakeholder

Talent recruitment
and retention

Biodiversity
Water resourcesmanagement

Energy management
Human rights and labor relations

Occupational
health and safety

Social engagement

Social cohesion

Impact on company operations

Degree ofstakeholder
concern

External
sustainability
impactChange(vs 2022)(Note)

Sustainable
governance
operation↑

2

Technologicalinnovation andmarket strategy↑

3

Business risk

new

4

Circular and clean
production↓

5

Supply chain
management↑

6

Sustainableproducts↓

7

Climate change

8

Talent recruitment
and retention↔

9

Stakeholders

newIntegrity
Diversity and equal opportunity

Impact oncompany
operations

1

Business risk

Climate change

2023 Material Topic↓

Note: “Occupational health and safety” was a material topic in 2022 but was not listed as a material topic this time due to decreased concern and impact; “Energy management” was a material topic in 2022 and while
it was not listed as a material topic by the 2023 materiality analysis, it remained a signiﬁcant topic so was consolidated with “Climate change” for management by AUO.

Material Topic Boundaries and Implications for AUO
Conﬁrmation of Material Topics and Disclosure
Each material topic’s scope of impact on the upstream, company operations, and downstream components of the AUO value chain were examined against the outcomes of the materiality analysis.
Internal information, data and management approach were gathered in and disclosed in accordance with the reporting requirements of the GRI Standards to ensure the transparency of the value chain,
and its extended inﬂuence. Given the fact that multiple indicators exist for speciﬁc issues each covering different scopes and boundaries, this report has taken the approach of presenting the results
using the maximum boundary.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthDouble Materiality at AUO

Signiﬁcance ofBusiness Operations

Everyone from the Board,
senior management
to all employees caneffectively implement
Sustainability the goals and vision in
Governance a systematic manner toOperations reduce the impact ofrisks, strengthen businessresilience, and realize thesustainable managementof the Company.
The deﬁnition ofstrategies for productmanagement, productmanagement, market
Technological strategy, and new
Innovation business development as
and Market well as the introduction
Strategyof R&D technology andinnovative techniques
are essential thecompetitiveness of theCompany.
Governance

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

51

Indicates that material topic has a signiﬁcant effect on business impact or sustainability impact
Business Impact (Company Values)

2023
Materials
issues

5 AgileInnovation

Sustainability Impact (External Impact)

Creation
Improvement
Corresponding
Industry
Investor Environmental Increase inConsumption Environmentalofof Employee
Extreme
Chapter
Revenue Customer Operating Employee Technology
Financial Beneﬁt of Renewableof Energy
Impact of
UpstreamLife andweather
Growth Satisfaction
Risk
Cohesion Development
CapitalProduct
EnergyResource
Purchasing
Value
Welfare(Negative)(Positive)(Positive)(Positive)(Positive)(Negative)(Negative)(Positive)(Positive)

1.3
Governance
Organization
1.4
Business
Integrity
1.5
Risk
Governance

2.3.2
Customer
Service
5.1
R&D
Innovation

Effective risk monitoringand management toincrease the resilienceof the Company and win
market trust

1.5
Risk
GovernanceSuppliers are importantpartners. A risk control
and punishment/reward
mechanism must be
Supply Chainestablished to achieve
Management
inclusive growth with
supplier partners andbuild a resilient supply
chain.

2.4
Responsible
Supply Chain

Effectively engage withstakeholders throughsuitable channels
to communicate
the positive andnegative impacts of
Stakeholder
sustainability topics aswell as demonstrate
the implications
and performanceof sustainability
management.

2.2
Stakeholder
Management

Operating
Risk

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthBusiness Impact (Company Values)
2023
Materials
issuesSigniﬁcance ofBusiness Operations

The use of innovativetechnologies for waste
Circularreduction and recycling
and Clean can help reduce theProduction impact of production
and open up new
business opportunities
Having the design andinnovation capability
to develop green
products and services
or rigorous green
Sustainable material certiﬁcation
Environmental
Product
and conﬂict mineralmanagement
mechanisms will help
win customer trust andboost environmental
friendlinessClimateChangeSocialFaced with the diverseand complex effects ofclimate change, engage
in suitable mitigation
and adaptation
behaviors, think aboutlife cycle management,
and identify risks andopportunities

Providing employeeswith fair andcomprehensive
Talentcompensation, beneﬁts,
Recruitment
and competency
andtraining will reduce
Retention
turnover, boost
recruitment, andincrease proﬁtability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

52

Sustainability Impact (External Impact)

Creation
Improvement
Corresponding
Industry
Investor Environmental Increase inConsumption Environmentalofof Employee
Extreme
Chapter
Revenue Customer Operating Employee Technology
Financial Beneﬁt ofRenewableof Energy
Impact of
UpstreamLife andweather
Growth Satisfaction
Risk
Cohesion Development
CapitalProduct
EnergyResource
Purchasing
Value
Welfare(Negative)(Positive)(Positive)(Positive)(Positive)(Negative)(Negative)(Positive)(Positive)

3.4
Circular &Clean
Production

2.3.1
Product
Quality
3.4.1
Circulation
Management
5.1.3
Sustainable
Product

Chapter 3.
Environmental
Sustainability

4.2
TalentAttraction &Development
4.3
TalentDevelopment

CONTENTS

2 Sustainable
Management

1 Business
Operation

3 Environmental
Sustainability

4 Inclusive
Growth2023 Material Topic Management Goals

5 AgileInnovation

NEW

Fact
Sheet

Subsidiary2023 new goals-

Appendix2023 AUO Sustainability Report53

did not set goal ❖ Sub-committee of Sustainability & ERM Committee

Governance Aspect
Material topic

Item
Establish strategies for
product operation, market
strategy, and new businessdevelopment

Technologicalinnovationand market
strategy

Apply core technologies,
innovative practices

Target

2024

2025

2026

Shipment volume of products using
recycled materials

1.8 million pcs

1.8 million pcs

3 million pcs

Shipment volume of special-speciﬁcation
products of energy- conservation (Note 1)

15 million pcs

15 million pcs

17 million pcs

The products of designated customer,
the productivity of promising to use
renewable

Responsible unit

Business strategy
Collaborate with like-minded partners
and continue to increase the salesof green products through theCompany's R&D and sales teams.
Progressively increase the use ofrenewable energy with a long-term
focus on customers with green corevalues. Their products are producedat AUO sites using renewable energy,
and the progress of green power
development is monitored throughthe management platform.

Meetcustomerrequirements

Meetcustomerrequirements

Meetcustomerrequirements

92%

93%

94%

Maintain a certain level of customer
satisfaction through delivery date,service, innovation, quality, and theintroduction of new products.

Promote diverse activities throughthe College of ESG and encouragecolleagues to participate in these
activities to create an ambianceof sustainability and enrich theknowledge of all employees❖ Sustainable
BusinessNEW

Sustainable
governance
operation

Management of productquality, customer
satisfaction, and protectionof conﬁdential information(customer privacy, company
secrets, etc.)

Customer satisfaction rating ratio

Sustainability goals andall employees culture
promotion

Improve the participation of all
employees and enrich the knowledge
energy through multiple innovativetechniques

Supplier risk management
mechanism
Supply chain
managementNEW

24,000person-times

25,000person-times

28,000person-times

LCD local purchase ratio (Note 2)

82.7%

82.7%

82.7%

LCM local purchase ratio (Note 2)

75%

75%

75%

Ratio of key direct materials with diverse
source development plans

97%

97%

97%

The number of key suppliers
implementing risk management has
increased every year
NEW

Supplier consulting/collaborate

36

54

60

24

28

32

NEW

Cumulative number of sessions for
supplier co-prosperity growth course(Note 3)

Sustainable
Development

Develop local supply sources, forge apriority cooperative relationship, andincrease the ratio of local purchase.

❖ Sustainable
Supply Chain

Form a diverse supply network tominimize the risk of relying on asingle supply source.
Comprehensive supply chain risk
control and management lower
potential risks and maintains supply
chain stability.
Continuously hosting diverse
thematic courses and sharing
experiences with supplier partners,
collectively pursuing sustainability.

CONTENTS

1 Business
Operation

Material topic

2 Sustainable
Management

Item

NEW

Supply chain
management

Promotion of suppliersustainability initiativeand evaluationof sustainability
competitiveness3 Environmental
Sustainability

Target
The average score of the key
supplier ESG scorecard has
increased every year
The number of key suppliers
who have completed the CDP
climate change questionnaire
has increased every year
(Note 3)4 Inclusive
Growth5 AgileInnovation

Subsidiary

2024

2025

2026

Increase by 3%

Increase by 5%

Increase by 8%

Fact
Sheet

Appendix

Responsible unit

❖ Sustainable
Supply Chain
20

25

6 sessions

6 sessions

NEW

Stakeholder

The number of featured articles

20%

4 articles

20%

5 articles

6 sessions

20%

Continuously communicating the biaxial
transformation achievements to foster
community strength in sustainable growthand innovative low-carbon intelligent
applications.

6 articles

Sustainable
Development

NEW
NEW

The completeness,timeliness, and quality
representation of
information disclosure

Business risk

Implementation of compliant
information disclosure processes(Note 4)

Implementation

Implementation

NEW

NEW

Manage business risk
and establish a risk
culture among all
employee

Increase the annual participation
rate for activities and courses
related to the enhancement ofrisk culture (Note6)

Proactively engaging with stakeholders tocommunicate and showcase sustainable
development achievements, driving societal
impact through case sharing reports.

Implementation

Implementing responsible information
disclosure processes to ensure the validityof sustainability statements and maintaincompetitiveness in future green marketing.
Aligning with international standard trends
to maintain and expand the effectiveness ofmanagement system veriﬁcation, verifying
the conﬁdence in the company's sustainableactions.

NEW

Obtain representative
management system
certiﬁcation categories (Note 5)

Publish the key supplier ESG scorecard andrequire the average score of all suppliers toincrease every year.

Combining international exhibitions withgreen exhibition practices to fulﬁll sustainablecommitments, and creating ESG business
opportunities through the participation andcollaboration of diverse stakeholders.

NEW

Annual growth rate of LinkedIn
followers

Business strategy

35

NEW

The diversity of
external interaction
channels and brandmanagement

54

Facilitate carbon reduction actions bysuppliers, require key suppliers to disclose
climate information, as well as evaluate andreview the development progress using
international indicators.

NEW

The number of international
exhibition participations

2023 AUO Sustainability Report

10

11

12

90%

91%

92%

❖ RickManagement

Continuously building a risk awarenessculture among all employees through annual
risk training courses.

Note 1: Pertaining to the product capacity of the R&D new energy-saving technology applications and Low-Temperature Polysilicon (LTPS) process.
Note 2: Data for local purchases excludes the Vendor-Managed Inventory (VMI) system of supplier inventory management, ensuring that the actual amounts are not affected by inventory
quantities.
Note 3: Accumulative event count since 2019.
Note 4: This refers to the process of ensuring appropriate and accurate information is provided through internal communication, review and publication.
Note 5: Representative management systems include ISO 9001, IATF 16949, QC080000, ANSI/ESD S20.20, ISO 17025, ISO 27001, ISO 14001, ISO 46001, ISO 50001, ISO 45001.
Note 6: To continuously establish a corporate risk culture, annual risk training for all employees will be conducted, with training rates for indirect staff set as the goal.

CONTENTS

2 Sustainable
Management

1 Business
Operation

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

55

Environmental Aspect
Material topic

Item

Sustainable productinnovation and design
Sustainable
Product

Promote circular andclean production value
chain engagement andmanagement

Climatechange

2024

2025

2026

Decrease energy consumptionof IT products (Note 1)
Base year: 2021

25%

30%

35%

Decrease energy consumptionof car products (Note 1)
Base year: 2021

20%

30%

35%

Increase the penetration rateof TV LCD panels (Note 1)
Base year: 2021

Technology
developing

>10%

>10%

The weight proportion ofrecycled materials used in
special-speciﬁcation products
Base year: 2021
Product green information
Transparency andCommunication

Circularand clean
production

Target

30%

20

30

40

Continue to expand thecircular economy supply chain(number of suppliers)

58

64

86

>90%

>90%

>95%

Ratio of recycled materials
certiﬁcation for the circular
economy supply chain

Financial beneﬁts growth rate
Base year: 2017Management innovation of
product life cycle

110%

135%

145%

Re-establish product carbon
footprint projects and systems
in response to standards
trendsSystemintegration

Product
carboninformation
service

Product
carboninformation
service

Carbon reduction ratio of key
suppliers
Base year: 2021

4%

8%

12%

Number of suppliers working
together on ESG

70

80

90

Business strategy

Review and enhance the R&D capacity through thetechnology platform, so that the products can be
more energy-efﬁcient than before.
❖ Sustainable
Technology

30%

The number of products thatprovide green information,
mainly monitors and notebook(Note 2)Market application andcommercial value creationof circular and clean
production technology

Value chain climate change
mitigation and adaptationas management,
engagement and operation30%

Responsible unit

❖ Sustainable
Technology❖ Sustainable
Business❖ Circular Economy
Working Group❖ Sustainable
Supply Chain❖ Circular Economy
Working Group❖ Circular Economy
Working Group
Sustainable
Development❖ Sustainable
Supply Chain

Continue to improve the penetration technology of
TV LCD panels to solve the problem of high energy
consumption of large screens and high resolution
through the technology platform.
Continue to evaluate the high-quality application ofdifferent recycled materials through the operation of
the Circular Economy Working Group to improve thecomprehensive recycling of products and meet therequirements of green brand customers.
Increase the application of green technology andrecycled materials in new product modules, andprovide related information for customers to increase
the product's green performance and competitive
differentiation.

Facilitate close collaboration with the supply chain
regarding the issue of circular economy through the
supply chain platform.

The Circular Economy Working Group horizontally
integrates resources across various units andgenerates circular economy growth through the
reduction and recycling of raw materials, as well as
waste reduction and the development of high-value,green product markets.
In response to product diversity and complexity, we
have reformulated an appropriate product carbon
footprint calculation methodology that is applied
to new product development through collaboration
between different units.
Promote carbon reduction actions of suppliers, where
key suppliers are required to obtain greenhouse gas(GHG) inventory veriﬁcation and implement carbon
reduction targets.
Foster a consensus and share resources throughsupplier-related meetings (high-level exchanges,
seminars, and courses) to accomplish common
action and growth.

CONTENTS

1 Business
Operation

Material topic

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthItem

TargetManagement ofclimate change risks
and ﬁnancial impacts

Number of projects completed therisk assessment and management
process

Sign the international initiatives-RE100

5 AgileInnovation

2024

Sign the international initiatives-SBT

Manage carbon credits/ acquiring
a qualiﬁed total amount of carbon
credits (Note 3)

2025

2023 AUO Sustainability Report

56

Responsible unit

Business strategy

3❖ Carbon-energy
Working Group

Continue to implement TCFD
operations through cross-functional
collaboration, and prepare forﬁnancial risks caused by diverse
climate scenarios.

3-

RE100 (executive
annual goal)--

Absolute Carbon
Reductionby 25% (Baseyear:2018)

Implementationof the new SBT
Path>500,000 tonnes(carbon offset
credit)>500,000 tonnes(carbon offset
credit)>200,000 tonnes(carbon offset
credit)Appendix2026

3

ClimatechangeCarbon asset
management andinternational initiatives

Fact
Sheet

Subsidiary❖ Sustainable
EnergySustainable
Development

Sustainable
Development

Integration of company resources andregular communication, graduallyachieving set renewable energy use
and carbon reduction goals.

Note 1: In order to align more speciﬁcally with customer products, the goal disclosed for this issue in 2023 has been redeﬁned and set, now aiming at benchmark products of new mass production
each year.
Note 2: Mainly monitor and notebook.

Social Aspect
Material topic

Item

Competitive rewards anddiversity of employee
welfare policies content

Target

2024

2025

2026

Percentage of employees who
experience happiness and are willing
to recommend others to participate

78%

79%

79%

Conduct post-experience happiness questionnaire
survey through digital communication platforms
to create a smooth and friendly communication
channel with employees

Top 25%

Top 25%

Top 25%

Participating in annual international market salarysurveys to ensure market competitiveness.

NEW

Overall salary level compared to theindustry standard (Note 1)

Talentattraction andretention
Enhance employee
satisfaction and of
employer brand image

Responsible unit

Q12 annual questionnaire
communication channels survey
on employees’ recognition of thecompany and work (Note 2)

Human resources
center
80%

80%

80%

81%

82%

85%

NEW

Q12 Annual Employee Survey Coverage
Rate

Business strategy

Conduct the Q12 employee survey every year
to gain employees’ feedback and designcountermeasures to enhance employees’
recognition and sense of belonging to theCompany.

Note 1: In the Taiwan Stock Exchange's public information observatory, the median salary of full-time employees who do not hold managerial positions is in the top 25% of the same industry.
Note 2: To avoid inconsistencies in the deﬁnition of recognition rate and CSR EPS, the original target for this issue disclosed in 2023 has been redeﬁned and reset as the Q12 annual employee survey, average recognition
degree of employees in four aspects (basic needs, management support, team cooperation, learning growth), and a new target for response coverage rate has been added.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

57

2.3 Customer Relations
AUO strives to become the best long-term partner for our customers. We work actively to meet customer requirements through innovative technologies and services, and provide our key customers in
different ﬁelds worldwide with high value-added green products and solutions. AUO has accumulated a wealth of technical expertise through many years of investment in the display industry. Our display
technology now forms the backbone of our efforts to integrate system-side software and hardware solutions that create new display value and boost vertical market applications. The resources and smart
productivity at global locations have been harnessed to build high quality, highly ﬂexible customer services. Annual satisfaction surveys are also employed to support continuous review and improvement.

2.3.1 Product Quality
Quality Management Approach
AUO has constructed a rigorous quality management system to not only supply products with quality products and services but also become their trusted long-term partner.

The Three Key Quality Management
Strategies
Introduction of smart management
Improvement of quality ability

Promotion of digital and smart management
to ensure the stability of production processes.

Improve customer satisfaction with theintroduction of new technologies andproducts, quality, service, and delivery time.

Cultivation of quality culture
Promote continuous improvement initiatives
and strengthen the internal quality culture.

In smart management, digital technology is combined with operating processes to optimize the smart management system. An information and material governance management process that
includes design data management structure, deﬁnition and organization of data sources, and improvement of trans-system data quality was also built to establish the Company’s key data assets. Data is
extensively used to support decision-making in order to improve the speed, precision, and completeness of decisions.
In quality management, AUO is focusing on differentiated technology strategies for different ﬁelds. We also conform with and integrate different the requirements of different international standards
to establish quality management processes for medical devices and automotive functional safety that satisfy customer requirements. Both Automotive Software Process Improvement and Capability
Determination (ASPICE) Level 2 and Trusted Information Security Assessment Exchange (TISAX) certiﬁcation. were obtained by AUO in 2023.

Promoting a Culture of Continuous Improvement
AUO embarked on the Continuous Improvement Program (CIP) in 2002 to cultivate the employees’ problem-solving skills and strengthen the Company’s quality capability. Improvements are
systematically carried out in logical steps to establish a common language through the Company for realizing the performance targets of the Company or individual departments. CIP has now been
active for more than two decades with more than 500 cases closed annually in the last three years. The Quality Control Circle (QCC) for production line workers and the Systematic Improvement Program(SIP) competitions for engineers for example see senior executives present awards for outstanding projects and the best promotion teams. Public events are also held for learning from each other andbenchmarks to cultivate a culture of continuous improvement at the Company.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report

58

Hazardous Substances Management
Hazardous Substances Management Policy
The “Green Product Hazardous Substances Management Policy” was formulated by AUO to enforce our Hazardous Substances Free (HSF) management policy in order to alleviate any impact on theenvironment and ecology, as well as fulﬁll our corporate responsibility on environmental sustainability. Effective management is practiced through the HSF Process Management System (IECQ QC
080000) to ensure that materials comply with international regulations and customer requirements. The 24th revision of the management regulations was completed by AUO in accordance withinternational regulations and the speciﬁcations of key customers in 2023. The updated regulations took effect in 2024 and now lists up to 153 substances for control. It not only encompasses all declarable
substances listed in the Material Declaration for Products of and for the Electrotechnical Industry (IEC 62474) but the speciﬁcations of all key customers as well.

PFAS Reduction Plan
Per- and Polyfluorinated Substances (PFAS) is a synthetic chemical substance whose properties include non-stick, water-resistance, oil-resistance, friction, stability and durability. These “forever
chemicals” are used extensively in kitchenware, leather, waterproof clothing, and electronic products. The stability of PFAS also means it is not easily metabolized by the human body. Excessive build-ups
of PFAS may lead to cancer, immune system diseases, reproductive anomalies, and fetal development problems. Restrictions or bans on the use of PFAS is now an international trend. Many countries
have started introducing laws on PFAS restrictions as well. New restrictions have been proposed by the European Chemicals Agency (ECHA) in 2023 to gradually phase out products containing PFAS.
PFAS is a huge family with tens of thousands of known substances. AUO began banning the use of certain more harmful PFAS in 2009 and continued to monitor their usage. AUO’s policy on PFAS ban
and its implementation schedule was announced through the HSF Management Regulations in 2024. The “All PFAS Free” program on the investigation and validation of alternative materials was also
launched at the same time. A total ban on All PFAS is expected to take effect on January 1, 2026, in an effort to make a contribution to the environment as well as human health and safety.

● Announcement of All PFAS Free policy● Ban on Speciﬁed PFAS

2009~2022
2009

2014

Ban onPFOS/PFOA

Monitor AFPOAUO Hazardous SubstanceManagement Regulation
Revision History

2026.1.1 Ban on All PFAS

● Investigation and veriﬁcation of PFAS
Free alternative materials● Monitor all PFAS Content

2023

2024

Jan

2016
Monitor All PFAS

2025

2026

Jan

Jan

AUO HSF Management Regulations Ver.
24 takes effect. Total ban on All PFAS fromJanuary 1, 2026

Ban on APFO/LC-PFCA/PFHxS

Implementation of All PFAS
Free policy

Banned Class A

Banned Class B

ReportingA test report is required to prove that it does
not contain substances banned by AUO

The Suppliers could self-declare that it does
not contain substances banned by AUO

The controlled substance that the supplierneeds to specify the content or concentration

12
12
12
12
12

Ver.24 (2024)
Ver.23 (2023)
Ver.22 (2022)
Ver.21 (2022)
Ver.20 (2022)
0

80

61
58
59
59
59
20

40

Unit: items

77
73
73
73
60

80

100

120

140

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

59

Global regulations

The AUO Green Product HSF Management Regulations is based on international regulations, customer requirements, andenvironmental trends. The HSF management policy is also reviewed every year and the contents of the Green Product HSF
Management Regulations adjusted if necessary.

AUO
Hazardous
Substance
Management
Regulation
Environmentalfriendly trend

Customerrequirement

Implement Conﬂict-Free Minerals
AUO is committed to the fulfillment of social responsibility as well as the respect and protection and human rights. A conflictfree minerals policy has been deﬁned in accordance with the OECD Due Diligence Guidance for Supply Chains of Minerals fromConﬂict-Affected and High-Risk Areas that suppliers are asked to respect and enforce. To uphold the principle of full disclosure on
all substances, AUO provides disclosure on the composition of parts and components through our system platform. We can also
supply conﬂict minerals due diligence documentation such as Conﬂict Minerals Reporting Template (CMRT) and Extended Minerals
Reporting Template (EMRT) for customers with such requirements to fulfill our obligations on due diligence and full disclosure.
Improvements are carried out in accordance with customer requirements on conﬂict minerals management.

Conﬂict Minerals
Standards

Mineral Supply
Investigation

Due
Diligence

Documentation &Public Disclosure

Deﬁnition of
conﬂict minerals
regulations inaccordance with
the AUO Conﬂict
Minerals Policy

Product analysis
Sorting and screening of
metallic materials
Launch investigation
through Conﬂict Minerals
Veriﬁcation Platform

Require suppliers
to submit
conﬂict minerals
information
through thesystem platform

Undergo customer audits
Submit conﬂict minerals
documentation to thecustomer

AUO and suppliers
take the social
responsibility
and protect
environment1

Declarationof Non-use
Conﬂict
Minerals
AUO ensure no
Gold, Tantalum,
Tin, and Tungsten
come from conﬂict
regions

2

AUO should
notify and require
suppliers tocomply with thedeclaration

3

AUO’s Statement on
Conﬂict minerals

The minerals Cobalt and Mica are now attracting international attention due to international trends and business demand. As a critical material in battery manufacture, Cobalt is now also a key material
in the global energy transformation to ﬁght global warming. Most of the world’s Cobalt production is located in Congo so there is the risk of armed conﬂict and illegal operations. Cobalt was therefore
listed by the Responsible Minerals Initiative (RMI) as the ﬁfth conﬂict minerals in 2019. Mica has extensive application in different industries due to its various optical properties, functions and electrical/
thermal insulation properties; it is also a main ingredient in exterior coatings found on electronic products. Serious problems with child labor, illegal operation, as well as unsafe health and safety practices
during the mining and processing of Mica in recent years led to, it being listed for management by RMI as well. On the whole, AUO remains committed to the principles of environmental friendliness andhuman rights protection through the promotion of responsible sourcing and by expanding the scope of due diligence investigations.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

60

Enhanced Due Diligence on Conﬂict Minerals● Due diligence area expanded from “Congo and neighboring conﬂict zones” toConﬂict-affected and high-risk areas”

Expanding the Scopeof Conﬂict Minerals
Management

Optimization of
GPARS Investigation
Platform● Updated the AUO Conﬂict Minerals Policy● Due diligence on minerals expanded from Tungsten, Tin, Tantalum and Gold toinclude “Cobalt, Mica, or their related minerals”

To perform due diligence on Cobalt and Mica, AUO not only added the lists of smelters/reﬁners for Cobalt and Mica to our system database
but also included Cobalt and Mica to our conﬂict minerals investigation forms. The optimization and continued operation of the Green Parts
Aggregation and Reporting System (GPARS) was completed on January 1, 2024.
Investigation Process

Investigation Findings

To ensure that the AUO supply is free of conﬂict minerals, a comprehensive conﬂict minerals management process wasestablished by AUO that consists of three main operating modes:
Data veriﬁcation process:Products are analyzed and the materials screened to pick out part numbers that contain metal for criticalraw material risk management. If a part number is determined as requiring investigation, a conﬂict minerals
investigation e-form is automatically opened by the system. The supplier must conduct an inventory of the
conﬂict minerals supply chain for this product when they receive the form. Once they have ﬁlled out the form thedata is reviewed by AUO.

Anomaly management process:
The country disclosed by the supplier as the source of the mineral is assessed after the review of the
conﬂict minerals information is completed. If mineral is sourced from a country that is a high-risk area
affected by conﬂict then the anomaly management process must be initiated. Response measures mustbe formulated to ensure that the conﬂict minerals source country for the material is not in a high-risk area.
Material management process:Information such as the part numbers and suppliers for incoming materials in the current month aremanaged through the procurement system. Monitoring reports are generated periodically to track theveriﬁcation progress of conﬂict minerals.

Tungsten, Tin, Tantalum, Gold:In 2023, we investigated 59 suppliers andveriﬁed 1,745 part numbers to enforce ourconﬂict-free minerals policy as well as upholdhuman rights and justice.
Cobalt, Mica:
Certain products were initially investigatedin accordance with customer requirements.
Product investigations have been completed
for 35 suppliers as of 2023. Further due
diligence investigations will be conducted in
the future.

2.3.2 Customer Service
Comprehensive Customer Service Journey
AUO strives to provide customers with a comprehensive product and service experience. Systematic management has been used to build a total and precise customer service mechanism. A full productprocess management system was developed by AUO to effectively manage the needs of key customers worldwide and meet their expectations. Once sales personnel enter the basic proﬁle, project
name, and related information such as product applications, product format, speciﬁcations, and anticipated project unit price into the system platform, all of their colleagues worldwide can use, share,
and update similar business opportunities from customers around the world at the same time. Any project changes due to customer discussions can be updated to the system at once to ensure that allcolleagues involved are on the same page. The system can also collate all of the information for further analysis in multiple aspects including annualized revenue from customer project, trends in market
technology requirements, and revenue and volume. The analyses help managers keep track of the latest developments and assist with their decision-making. At the same time, AUO can also use thecustomer demand management system and requirement satisfaction system to track short changes in near-term and future customer demand. Production capacity and material procurement can thenbe adjusted in a timely manner to avoid delivery issues due to part shortages or excess stock.

CONTENTS

1 Business
Operation

Material Topics

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report

61

Ratio of Customer Satisfaction Ratings

Customer Satisfaction
Customer satisfaction surveys are conducted by AUO every year. Areas requiring improvement are personally examined by senior executives during management review meetings before being assigned
to the competent units for the proposal and implementation of improvement strategies. In addition to satisfaction surveys, AUO also seeks to make progress through three main aspects of product,business, and quality. Multiple channels are employed to maintain two-way communication with customers through weekly and monthly meetings, Quarterly Technical Reviews (QTR), Quarterly
Business Reviews (QBR), Quarterly Quality Reviews, executive meetings, inviting customers to tour AUO product expos, and other ad hoc meetings. More than 50 communication meetings are on
average conducted with key customers each year for example. Maintaining a close working relationship and building of customer trust embodies the AUO customer-centric philosophy.
The satisfaction trends of the two business groups of Display and Energy have remained consistently above 90% in recent years. Analysis of the 2023 ﬁndings also showed strong customer appreciationof AUO accomplishments in quality and smart management. The Display BG in particular took satisfaction with the introduction of new products, quality, and after-sales support to new levels by
maintaining satisfaction at over 96%. Power plant project satisfaction surveys were introduced by the Energy BG in 2021 and in 2023 it maintained a customer satisfaction rating of over 99% for delivery,
product innovation, introduction of new products, quality, and after-sales support.

Display Business Group

Energy Business Group

Deliveryschedule

100%

Product
innovation

95%
90%
85%
80%
2019

Display

2020

2021

2022

2023

Quality Targets and Performance

95%

90%

90%

84.13%
80%

85%
80%

95%

New productintroduction

90%

Quality

80%
2019

90%
86.37%

2020

2021

2022

2023

Product
innovation
New productintroduction
Quality
After-sales service

98.14%

97.13%

80%

Energy85%

After-sales
service97.90%

100%

Delivery schedule

100%

91%
88.49%80%

SPC Completion Rate (Note 1) Target
SPC Completion Rate (Note 1) Result
Customer Satisfaction (Note 2) Target

Continual
Improvement
cases

2021

2022

2023

Target

496

450

450

Actual

553

763

879

Customer Satisfaction (Note 2) Result

Note 1: SPC: Statistical Process Control SPC tools are used by AUO to improve ability to monitor anomalies and stabilize the production process. Calculated as “No. of targets completed/Total number of targets * 100%.”
Note 2: Calculated “No. of satisﬁed customers/Total number of customers in satisfaction survey * 100%” from the ﬁve main aspects of satisfaction. Data coverage for customer satisfaction was 100%.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

62

Customer Return Policy
AUO is committed to “timely delivery of high-quality green products and services for a win-win outcome with our customers.” We provide transnational electronic quality and after-sales support
services through our global service locations. Customers can use the AUO Customer Service System (CCS) to apply for RMA (Return Materials Authorization) service and arrange for the return, exchange,
repair and delivery of products within their warranty period. Customers can also track their current progress through CCS. Even as supply chains rush to expand their global contract manufacturing
operations, AUO works actively with brand customers to set up RMA service collection points and support suitable repair centers in keeping with our philosophy of putting customer service and qualityﬁrst. Defective products throughout the region can then be aggregated by the customer and shipped to an AUO support center for sorting. Customer shortfalls can also be met in a timely mannerfrom the inventory of good and refurbished products at local collection points. This not only ensures that there are no disruptions to the customer’s product lines or market services, but also reducestransportation costs and related carbon emissions for both parties.

Material Topics

Number of products with green information, percentage of customer products committed to the use of renewable energy during production, shipments of products using
recycled materials, shipments of products speciﬁcally speciﬁed for energy efﬁciency

Satisfy Customer Demand for Green Products
Global demand for products with low carbon footprint is growing. AUO offers a one-stop total solution for low-carbon
footprint products. By working closely with customers on circular materials, low energy consumption and productcertiﬁcation we help brand customers improve their market competitiveness and recognition. AUO is responding toa rapidly changing market by accelerating the use of recycled materials and energy-efficient products. We actively
promote products from different fields for customers and their applications. In keeping with our customer-centric
service philosophy, AUO studies customer requirements and targets to offer customized solutions, select the right mixof recycled materials and energy-efﬁciency technology, and engage in professional discussion and technical exchange
during these processes. In 2023, we offered customers 111 products that incorporated green technology and delivered
wins for the environment and the economy through advanced technology.

Low carbon
manufacturing
CircularMaterials

Low power
consumption

Green
Product

Circular Materials

Low Energy Technology

AUO is now expanding the use of circular materials beyond IT panels. Current applications
include automotive products and vertical solutions. Different levels of circulation are offered
for recycled materials such as plastic f rames and metal backplates used in our productcomponents for customers to choose from. Shipments in 2023 amounted to 4.22 million pcs.
AUO is partnered with value chain partners to expand the inﬂuence of the circular economy.
We worked with suppliers of f ront-end processes to validate the introduction of recycledmaterials, and with brand customers to jointly develop and validate the introduction ofrenewable materials in optical materials with high quality requirements. p.97

To satisfy the carbon reduction requirements through the life cycle of customers’ end products,
AUO applied energy-efﬁciency technologies such as Low-temperature polycrystalline silicon (LTPS)
and local dimming to products. The architecture for the next generation of panels is also designed
to provide more diverse low-energy panel solutions. In 2033, 18.55 pcs of energy-efﬁcient products
were shipped. p.156

Green Manufacturing

Product Certiﬁcation

AUO was the ﬁrst global display maker to commit to using only renewable energy by 2050. We
are one of the leading benchmarks when it comes to the crafting of green displays. No effort
has been spared by AUO when it comes energy-efﬁciency in manufacturing. p.69

In 2020, AUO released the ﬁrst display in the world to use circular materials and also received theﬁrst UL3600 circularity coefﬁcient certiﬁcation in the world issued to the panel industry; in 2021, we
extended our cooperation with a Taiwanese brand customer to release the ﬁrst notebook computer
to incorporate recycled materials. In 2023, two development projects were chosen for UL2809
recycled content validation. AUO also worked with customers to obtain the Electronic ProductEnvironmental Assessment Tool (EPEAT) product eco-label to increase the competitiveness ofbrand customers’ green products.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report63

2.4 Responsible Supply Chain
2.4.1 Management Strategy
In addition to setting strict supplier requirements on quality, cost, delivery time, environment, healthand safety performance, AUO has also been explicit in expressing the strong importance we attach to a
responsible supply chain. A practical supply chain sustainability management process has been establishedby AUO that incorporates comprehensive external standards and automated management. We also
communicate key policies on carbon reduction and energy efﬁciency, legal mineral sources, and local/green
procurement to supply chain partners. At the same time, we realize sustainable co-prosperity with supply
chain partners through sharing and mutual assistance, audit counseling, and in-depth exchanges.

Organizational Operations and Management Strategy

Supplier Screening
AUO supply chain partners come f rom across the world and 3,617 suppliers conductedbusiness transactions with AUO in 2023. Suppliers are divided by AUO into seven categories
based on type of procurement. These include raw material suppliers, process contractors,
waste disposal contractors, equipment and component vendors, human resources contractors,
service contractors, and transportation. Raw material suppliers include those that supply glass
substrate, chemicals, polarizers, backlight modules, driver ICs, printed circuit boards, plastic
parts, and metal parts. AUO also categorizes supplier by issue for targeted management.
Categories include environmental action (water conservation, energy conservation, carbon
reduction) and international comparison standards (RBA, DJSI). Key suppliers are identiﬁed
through annual procurement value, single-source suppliers and other principles.

Supplier Category

Number

Deﬁnition

Number of suppliers in
2023

3,617

Number of suppliers that traded with AUO
in 2023

Number of Tier-1 suppliers

617

Value of annual procurement exceeded
NT$10 million

123

Key vendors for direct materials, strategic
indirect material suppliers and contractors
where value of annual procurement
exceeded NT$100 million

68%

Value of procurement with Tier-1 criticalsuppliers / Value of procurement with Tier-1
suppliers x 100%

Number of signiﬁcant
suppliers in non Tier-1

5Tier-2 Critical Material or Process Suppliers

Number of signiﬁcant
suppliers(Tier-1 and non Tier-1)

128

Number of signiﬁcant
suppliers in Tier-1
Percentage of total spend
on signiﬁcant suppliers in
Tier-1The 2023 CDP Supplier Engagement Rating Report saw
AUO surpass the average global business rating (C level) with
an A- rating Leadership.

Tier-1 Critical Suppliers + Tier-2 Critical
Suppliers

The global push on net zero and a fast-changing environment means the construction of a resilient
supply chain is crucial to business transformation. The Sustainable Supply Chain Sub-Committee
under the AUO Sustainability and ERM Committee (Note) is responsible for overseeing the planningand implementation of projects and activities related to supply chain sustainability, and for brieﬁng
the Board on key resolutions. Functional organizations under the Sustainable Supply Chain Subcommittee are also responsible for the expansion and promotion of related sustainability actions.
They also collaborate with overseas branches (Suzhou Site, Kunshan Site, Xiamen Site) on the
promotion of sustainable supply chains.
To enhance the professional knowledge and skills of our buyers on their roles in the supplier ESG
program in supply chain departments, AUO conducted systemic courses on ethical management,
corporate governance, and carbon management practices to communicate the importance ofabiding by the code of ethics and to establish their competency in sustainability. In 2023, 380 hoursof training were conducted for 2,374 people. We are also planning to develop themed courses
tailored to employees in other business units such as Procurement, Logistics, and Supply Chain
Management that can be applied throughout supply chain management.
On a strategic level, AUO follows the principle of balanced ESG development in deﬁning concrete
supplier sustainability management regulations and targets based on the three aspects ofenvironmental sustainability, risk control, and partner exchange. In addition to establishing acomplete supply chain management process, AUO also leveraged digital platforms to introduce
comprehensive external standards and automated management to achieve benef its such as
management automation, data standardization, and cost optimization.

Engage In Exchanges
with Partners
AUO actively collaborates
with suppliers to
implement various
sustainability actions.
Furthermore, theCompany consolidates
diverse resources for
suppliers to enhancesustainability andcompetitiveness withthem.

Risk Control
AUO has established a supply chain
risk management mechanism andgreen purchasing standards. We also
continuously engage in optimizationand improvement to create a resilient,sustainable supply chain.

Environmental Sustainability
AUO strives to fulﬁll its commitments
to environmental sustainability
with upstream partners to create
environmentally friendly and socially
responsible products and services.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

64

2.4.2 Management Process
The AUO supply chain management process is a cycle made up of five stages, namely New Supplier Evaluation, Standards Compliance, Risk Assessment, Audit and Verification, and Continuous
Improvement. Standard operating procedures have been established for each stage for effective management. Projects are set up for specific topics to ensure the continued optimization of the
management regime. The SCM CSR Portal system was also introduce to digitize management data, record the sustainability performance of suppliers, and strengthen risk management. AUO
continuously reviewed to ensure suppliers alignment with the Supplier Code of Conduct and to avoid potential conﬂicts with ESG requirements.

New supplierevaluation

Standards
compliance

Assess risk

To ensure compliance withthe code of conduct andcustomer standards of
behavior, new suppliers are
required to sign the AUO
Supplier Ethical Business
Relationship Statement.

Regular promotion ofsustainability guidelines
ensure that suppliers areaware of the latest local
and international trends,
and also in compliancewith the requirements
and standards set by
AUO and our customers.

Establishment of a complete supply
chain risk control process, continued
optimization and reﬁnement of the risk
control regime, and maintaining stability
in the supply chain.
The ESG Scorecard system wasestablished in 2024 to take supplier
ESG performance into account during
procurement decisions.

STEP 1
STEP 1

STEP 2

STEP 3

Audit andveriﬁcation

Continuous
improvement
and upgrade

Audits for highrisk suppliers were
strengthened while also
incorporating thirdparty audits and ISO
requirements to ensure
the quality and reliabilityof supplier data.

Provide suppliers withtraining courses andworkshops on diversity
issues, and recognizing
outstanding supplierswith awards.

STEP 4

STEP 5

New Supplier Evaluation

New suppliers must undergo management system evaluations on production capacity, technological innovation capability, quality, service, ﬁnancial indicators, and Hazardous Substances Free. An
evaluation team is formed by the competent AUO units to audit supplier s' environmental, social, governance, and cybersecurity capabilities by using the ESG Scorecard capabilities and ensure theconformity of the supplier’s capabilities and management systems meet the requirements. New suppliers are also required to sign the AUO Supplier Ethical Business Relationship Statement.

STEP 2Standards ComplianceSign Statement of Compliance with AUO Supplier/Subcontractor Code of Conduct
All AUO suppliers must sign the “Statement of Compliance with AUO Supplier/Subcontractor Code of Conduct” and commit to theabiding by the spirit of the Code. The Code itself is based around the Responsible Business Alliance (RBA) and encompasses theﬁve aspects of Labor Rights, Health and Safety, Environmental Protection, Ethical Standards, and Management Systems. In response
to international trends, bio-diversity, forest protection, soil conservation, carbon reduction and energy conservation, and suppliermanagement were also incorporated into the Code in 2023 to provide a more comprehensive assessment of sustainability governanceat suppliers. At the same time, AUO also made supplier compliance with the Code of Conduct one of key areas of assessment during
procurement decisions to ensure that AUO and our supply chain adhere to a high standard on sustainability.

The AUO Supplier/Subcontractor Codeof Conduct can be found on
the Sustainability website under Policy and Principles

Ethics Awareness
An ethics awareness letter is sent 3 times a year to suppliers that AUO has business dealings with within the past year to strengthen their ethics consciousness and remind them to follow the terms ofthe contract and business ethics. By ensuring the fairness, impartiality and transparency of transactions, a long-term relationship of trust can be built to reduce potential risks and disputes, and promote
constructive cooperation.

CONTENTS

1 Business
Operation

STEP 3

Assess Risk

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

65

Risk Assessment Mechanism for Key Suppliers
AUO examines and investigates the country/region where the supplier is located, as well as potential industry and product risks. The necessity of imposing supplier controls is determined according to theamount of annual procurement. We then use annual self-evaluation questionnaires to learn about the degree of supplier’s ESG risk and control. Suppliers with high potential risk are then listed for management.
Aspect/Method

Evaluation ItemCountry-speciﬁc Risk

● Ban on use of materials from conﬂict minerals countries and U.S. entity
list.

Sector-speciﬁc Risk

● Raw material suppliers with energy-intensive. high-carbon production
processes and special emission/pollution risks.

Commodity-speciﬁc Risk

Business Relevance

AspectEvaluation Item

Environmental
Aspect● Past record of serious injury, death, or property loss due to industrial safety accident.
● Past penalties or shutdowns imposed by government units for violation ofenvironmental protection laws and regulations.
● Introduction of ﬁre protection, pollution treatment, and EHS systems at the
supplier.

● Sort parts or materials to identify those that contain metals or
hazardous substances with special controls.

Social Aspect● Past penalties imposed by government units for violation of labor, human rights,
labor health and safety laws and regulations.
● Past incidents of forced labor or employment of child labor.
● Level of supplier compliance on labor rights, privacy protection, and ethicalstandards.

● Sort by value of procurement and substitutability.

Governance
Aspect● Current status of compliance with RBA Code of Conduct, supplier ﬁnancial
indicators, and business continuity management.

Outcomes of Critical Supplier Assessment
A total of 112 critical suppliers (Desk assessment) were investigated in 2023. These include 2 high-risk vendors in the social responsibility aspect mainly due to the lack of management procedures and risk
monitoring and control mechanisms; 8 high-risk vendors (12 sites) in the EHS aspect mainly due to multiple emission sources in these supplier’s routine operations. A total of 27 suppliers including highrisk suppliers from the previous year were chosen for additional on-site audits by AUO, though 3 suppliers were able to present the RBA VAP certiﬁcate as a substitute for on-site audits by AUO.
Supplier Assessment

NumberTotal number of Critical Suppliers

128

Total number of suppliers assessed via desk assessments

112

Percentage of critical suppliers assessed

Remark

Deﬁnition: Critical Tier-1 and Tier-2 Suppliers

87.50%

Total number of suppliers assessed via on-site
assessments

27

Deﬁnition: Number of suppliers investigated and found to be required on-site audit carried out by AUO(2nd party assessment)

Number of suppliers assessed with substantial actual/potential negative impacts

13

Percentage of suppliers with substantial actual/potential
negative impacts with agreed corrective action/
improvement plan100%

Improvement action: AUO requires suppliers with deﬁciencies to propose improvement plan

Percentage of suppliers with substantial actual/potential
negative impacts that were terminated0%

Improvement outcome: Improvements were carried out by all suppliers with no suspensions

Total number of suppliers supported in corrective action
plan implementation

13

Improvement action: AUO requires suppliers with deﬁciencies to show proof of
improvement in the current year

Percentage of suppliers assessed with substantial actual/potential negative impacts supported in corrective action
plan implementation

100%

Improved results: All suppliers have provided evidence of improvement for the current year.

CONTENTS

1 Business
Operation

Material Topics

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

66

Percentage of local procurement for liquid crystal displays (LCD), percentage of local procurement for liquid crystal modules (LCM)

Local Procurement Management

ESG Scorecard

AUO is supporting the spirit of SDG 12 by upholding the principles of local
procurement and local production. Reducing management and operating
costs through procurement at the right time and in the right place serves tocreate local employment opportunities and stimulate economic prosperity.
Short and medium-term local procurement targets have been set by AUO
for liquid crystal modules (LCM) and liquid crystal displays (LCD). In 2023, theratio of local procurement for LCM was 75.1% and met the set target; the ratioof local procurement for LCD was 81.0% and did not meet the set target (82%).
The main reason for this was use of non-local suppliers due to constraints onsource of materials. A meeting is convened by AUO each month to examine
the state of local procurement. We are also continuing to develop local
suppliers to increase the ratio of local procurement.

AUO hopes to encourage the supply chain to conform to the sustainability goals set by AUO through commercial
initiatives. The ESG Scorecard was therefore established by AUO with the scores used a reference for collaboration with
suppliers. The ESG Scorecard requires suppliers to adhere to environment, social, and governance standards. Topics in theenvironmental aspect include carbon management, energy management, water management, and circular economy;
topics in the social aspect include labor rights, occupational safety, ethics and compliance, and social welfare; topics in thegovernance aspect include quality and technology, sustainable procurement, and business continuity. AUO uses the ESG
Scorecard to promote the practice of sustainability management and further reduction of operating risks in the supply
chain. At the same time, annual reviews and improvement of supplier evaluation criteria are also employed to continue
improving the sustainability performance of the supply chain as a whole. Achieving annual improvements in the average
ESG Scorecard scores of suppliers has been set as a management target as well. In 2023, the ﬁrst year and base year of
the initiative, the average supplier score was 61.3. At the same time, the ability for suppliers to ESG benchmarks againstwith other peers in the system will serve as motivation for continued progress and growth.

Material Topics

Enforcing risk management at critical suppliers (cumulative number of suppliers)

Quarterly Business Review
A Quarterly Business Review (QBR) is conducted on suppliers by the competent units at AUO every quarter based on the three key aspects of Technology, Quality, and Procurement to ensure continuous
improvement and reﬁnement of supplier management. Suppliers that conducted the RBA audit during the year were given a total QBR score based on the audit ﬁndings. A mechanism for adding anddeducting points was also applied. AUO hopes that this will ensure continuous improvement and compliance by suppliers with the requirements of the “AUO Supplier/Subcontractor Code of Conduct.”
Supplier performance in the current quarter and the last four quarters was used to identify suppliers that failed in a single category (procurement, quality management, technology) or their overall score(Grade C). In addition to convening a review meeting attended by senior executives from both parties, AUO weighs up other options such as suspending the development of new products, adjustmentof procurement volume, or removal from list of approved suppliers. AUO will incorporate the ESG Scorecard into the QBR scoring mechanism in 2024 to meet all of environment, social, and governancerequirements for sustainable supply chains. Suppliers with strong ESG performance will receive a higher QBR score so suppliers with better ESG performance are preferred . Suppliers may excluded fromcontracting if they cannot achieve minimum ESG requirements . At the same time, AUO is also auditing the management processes of critical suppliers to proper risk management. The audit covering ISO
certiﬁcation, business continuity plan, BCP documentation, impact of geographic location, and alert mechanisms ensures that critical suppliers can response and act in a timely manner to future operating
risks. This will help prevent risk-related damage and improve the resilience of the AUO supply chain. 18 vendors have been audited as of 2023.

STEP 4

Environmental

SocialAudit
conformity rate

85.96%

84.21%

Nonconformities

99 nonconformities were found with 3 classiﬁed as
major and 96 classiﬁed as minor.

114 nonconformities were found with 13 classiﬁed
as priority, 78 classiﬁed as major, and 23 classiﬁed
as minor.

Outcomeanalysis

Health and Safety were the main nonconformities(86.86%), with Health and Safety - Emergency
Preparations accounting for 27.21%, followed byHealth and Safety - Occupational Safety.

Labor (49.10%), and Health and Safety (42.10%)
were the main nonconformities. These included
Labor - Work Hours accounting 25.40%, andHealth and Safety - Food, Sanitation andAccommodation accounting for 36%.

Audit and Veriﬁcation

RBA Annual Audit
Based on survey results, the outcomes of audits in past years, theoutcomes surveys in past years, whether RBA VAP certiﬁcation
has been obtained, as well as supplier type and transaction
volume, AUO identif ied 27 suppliers and 31 sites as being
required to under the RBA audit. Among these suppliers 3 hadalready carried out RBA VAP audit and certification. A total of
24 suppliers (28 sites) agreed to undergo second-party audit by
AUO in accordance with RBA standards in 2023. AUO required
suppliers to respond to any nonconformity and supervise theimplementation of corrective action . All nonconformities were
subsequently corrected so there was no need to terminate therelationship with any supplier.

CONTENTS

1 Business
Operation

Material Topics

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report67

Support for external initiatives or trending topics in conjunction with suppliers, ratio of energy-intensive suppliers that obtained ISO 50001 energy management system certiﬁcation

Supplier Introduction and Certiﬁcation of ISO 14064/ISO 50001
AUO requires critical suppliers to introduce and obtain certiﬁcation for ISO 14064/ISO 50001 greenhouse gas inventory and energy management systems. Our goal is to ensure that suppliers can engage
in practical and effective management based on international standards in order to reduce their environmental impact and lower their product carbon footprint. As of 2023, 60 critical suppliers haveobtained ISO 14064 certiﬁcation and disclosed their carbon emissions data (Note 1); 18 energy-intensive suppliers have obtained ISO 50001 energy management system (Note 2) certiﬁcation, representing
54.54% of all energy-intensive AUO suppliers.
Note 1: Overseas suppliers can substitute with other third-party certiﬁcation data.
Note 2: The government deﬁnes energy-intensive businesses as those that use more than 5,000 kW, the equivalent of 15,000 tons of carbon emissions. AUO deﬁned energy-intensive suppliers as those with Scope 2 emissionsof more than 7,500 tons to make it twice as rigorous as the statutory threshold. There were a total of 33 energy-intensive suppliers in 2023. Other third-party certiﬁed data can be substituted by overseas suppliers.

STEP 5

Continuous Improvement and Upgrade

Creating Shared Value Events
AUO hosted four CSR Creating Shared Value events in 2023 on themes such as government policy, product carbon footprint in practice, drilltransformation strategy in practice, as well as energy conservation and carbon reduction in practice and observation tour. AUO shared our
extensive experience with suppliers to build capacity and ESG performance in suppliers. A total of 1,083 people from 71 supply chain partners
took part in these learning sessions during the year.

CSR Conference
AUO responded to the spirit of SDG 17 by reaching out to our upstream and downstream partners to create shared value. The CSR Conferences
have been held four times since 2019. The events dedicated to continuous exchange and expanding the inﬂuence of the value chain has always
attracted strong interest and positive feedback from supplier partners. In 2023, AUO invited 50 suppliers and over a hundred partners to takepart in the 4th CSR Conference. Awards were presented to outstanding supplier partners. During the Conference, AUO also designated 2023
as Year Zero for plastic reduction and planned to realize the goal of plastic neutrality by 2030. Consultants, experts, and representatives ofbenchmark enterprises were invited to share their practical experience and global trends as well.

On-Site Exchange
The AUO Facilities team conduct in-depth technical support programs with
suppliers to support carbon reduction initiatives in the supply chain. In 2023, AUO
conducted on-site exchanges with raw material suppliers in 3 countries on rangeof topics such as environmental safety, energy-efﬁcient factory, case studies, andmanagement goals to improve the sustainability competitiveness of the supply
chain and realize carbon reduction targets.

Large Leads Small Carbon Reduction Program
AUO strives to work with suppliers on promoting green transition to improve theircompetitiveness and realizing the goals of green transition. In 2023, AUO partneredwith the Ministry of Economic Affairs to support the transformation and upgradeof 15 suppliers through the “MOEA Large Leads Small Low-Carbon and Smart
Technology Upgrade and Transformation Grants Program for the Manufacturing
Industry” so that they can meet the domestic/overseas regulatory and supply chain
requirements. The program encompassed equipment upgrades, introduction ofdigital energy-efficiency and carbon management platforms, expert counseling,
and personnel training. AUO’s goal is to accelerate the development of low-carbon
supply chains through leading by example as a large enterprise.

● The 4th CSR Conference is themed aroundplastic reduction and biodiversity.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report68

2.4.3 Low-carbon Supply Chain
Material Topics

Ratio of carbon reductions at critical suppliers

20% Carbon Reduction by 2030
As part of AUO Green Solutions, we not only continue to push our own standards but also hope to set an example for the rest of the industry by extending the influence of our environmental
sustainability initiatives to our value chain as well. AUO and 66 critical suppliers have now jointly committed to a target of a 20% in absolute carbon emissions by 2030 with 2021 as the base year over fourphases: Inventory, Target setting, Annual decrease, and Target accomplishment.

Critical subjects for carbon reduction
management

Critical supplier carbon
reduction pathway● Accounts for top 80% of
procurement by value● Critical direct and indirect material
suppliers

Carbon Reduction Target
0%

2023

2024

-2%

-3%

2025

-6%

2026

-8%

2027

-11%

● Critical tier-2 direct materials

Schedule

Phase 1
2020-2023

TargetCarbonInventory● Introduce ISO 50001 energy
management system● Participate in CDP survey● Establish carbon reduction targets
Phase 22023-2025

Set Target● Strengthen power efﬁciency andparticipate in power conservation
plans● Use sustainable raw materials anddevelop sustainable products● Reach carbon peak in 2025

Phase 32025-2029

Phase 42030-

AnnualDecrease

TargetAccomplished● Strengthen carbon reduction
targets and actions every year
● Work with supply chain to identify
commercial value of carbon
reductions● 20% reduction in absolute carbon
emissions by 2030

-14%

2029

-17%

2030

-20%

OutcomeKey Task● Complete ISO 14064 GHG
inventory

2028● GHG inventory veriﬁcation completed by 60 critical suppliers● ISO 50001 energy management system introduced at 54.54% ofenergy-intensive suppliers● 17 critical suppliers took part in CDP survey● 66 critical suppliers made joint declaration on carbon
reduction● 60 critical suppliers set carbon reduction targets and annual
carbon reduction pathways● Design of ESG Scorecard used to encourage suppliers to invest
in power conservation plans and develop sustainable products

Carbon emissions attributed to AUO as well as eachindustry’s proportion of total emissions by AUO suppliers
are calculated based on industry and each supplierproduction location’s proportion of production capacity.
Glass was the largest segment with 5 1.09% of AUO
emissions, followed by backlight panel/contractors at
12.56%, polarizers at 8.47%, FPC at 5.77%, LED at 4.49%,
PCB at 4.02%, and chemicals/LC/Gas at 3.48%. The 7 typesof suppliers above accounted for over 90% of AUO supplieremissions and will be targeted for management by AUO.
AUO required suppliers to set their own carbon reduction
targets, base years, and carbon reduction pathways.
Suppliers can go to the CSR Portal system and enter theannual carbon emissions data (verif ied by third-party),
annual carbon reduction targets, and total target for
2030.

3

Environmental Sustainability

3.1 Climate Action

3.2 Carbon & Energy
3.2.1 Inventory & Mitigation

3.3 Water Resource
Management

3.4 Circular & Clean
Production

3.1.1 Governance & Strategy
3.1.2 Climate Risk Management
3.1.3 Metrics & Targets

3.5 Biodiversity
3.5.1 Vision & Progress

3.2.2 Improve Energy Efﬁciency

3.3.1 Target & Performance

3.4.1 Circular Economy Performace

3.5.2 Plastic Neutrality

3.2.3 Use of Renewable Energy

3.3.2 Management Framework

3.4.2 Wastewater Management

3.3.3 Reﬁnement Projects

3.4.3 Air Pollution Management
3.4.4 Reuse of Waste

Annual Highlights

Passed the SBT witha 1.5-degree scenario

Material Topics◆ Climate change◆ Circular & Clean Production◆ Sustainable productsElectricity usage per unit area ofthe manufacturing process has

The usage of green energy is nearlydecreased by 12%

reaching RE 2.2%

Water intensity for production

The beneﬁts of a circular economy reacheddecreased by 5%

NTD 14.39 billion

100 million kWh,Commit plastic neutrality by 2030 andzero-deforestation by 2050

Our Vision
AUO actively responds to external initiatives by setting science-based carbon reduction targets (SBT), reducing total carbon emissions year by year. We echoed global trends and pledges to achieve
RE100 by 2050, and continually works towards a net-zero goal. Through drawing up strategic climate blueprints, we are committed to improving energy efﬁciency and implementing low carbon andcircular production methods considering the entire lifecycle, as well as mitigating greenhouse gas emissions. At the same time, we continually strengthening operational resilience with value chain
partners and exploring new business opportunities under climate change in order to meet future climate challenges.

Target & ProgressMaterial topic

2023
TargetNumber of projects
completed theclimate risk
assessment andmanagement
process

3

Manage carbon
credits/ acquiring
a qualiﬁed total
amount of carbon
credits

2023:>200,000
tons(carbonoffsetcredit)Sign the international
initiatives-RE100

Sign the international
initiatives-SBT

Number of proposals
for annual energysaving competition-

2023 Our actions

performance:
5

performance:
226,000 tons

performance:
RE2.2

Through the Energy-saving working group (includes TCFD
platform), AUO conducts an annual inventory of potential
climate risks. In 2023, 6 risk issues were identiﬁed, with one
being physical risk, and the remaining ﬁve being transitionalrisks. The responsible units then estimate the potential
ﬁnancial impacts and develop management strategies basedon these risk issues, preparing in advance to respond to any
risks that may arise.
In 2014, AUO achieved 100% implementation of localized
destruction equipment for ﬂuorinated gases, in responseto the Environmental Protection Agency's early reduction
project and obtained early carbon credits. In 2019,
they continued to improve ﬂuorinated gas reduction
management and applied for a offset project, resulting in
obtaining 226,000 metric tons of carbon credits in 2023.
Based on the current legal system and market conditions,
AUO’s sites in Taiwan primarily adopts CPPA, amounting toa total usage of 13.7 million kwh of green energy in 2023. The
Mainland China site expands its rooftop self-consumption
solar power plant, generating 56.01 million kwh of selfconsumed green energy in 2023. Additionally, they purchase3,000 kwh of green energy certiﬁcates. Overall, in 2023, AUO's
total green energy consumption amounts to nearly 100
million kwh, accounting for a 2.2% RE ratio.

-

By the ﬁrst quarter of 2024, AUO has achieved the Science-Based Targets (SBT)with 1.5-degrss scenario.

48

Since 2008, AUO has been organizing a proposal competition
to encourage each plant to propose optimization solutions
for energy-saving technologies, energy management,
and water management. This initiative aims to stimulatecontinuous exploration and progress among employees. In
2023, a total of 16 fabs participated in the annual competition,with each plant selecting three representative proposals,
resulting in a total of 48 proposals competing for the year.

performance:
48

Achieved

Not Achieved

2024
Target2025
Target2026
TargetResponses

3

3

3

3.1.2
Climate Risk
Management>200,000
tons (carbon
offset credit)>500,000 tons
(carbon offset
credit)>500,000 tons
(carbon offset
credit)3.2.1
Inventory &Mitigation

-

RE 10
(executive
annual goal)

-

3.2.3
Use ofRenewable
Energy-Absolute Carbon
Reduction by
25%(Base year:2018)

Implementationof the new SBT
Path

3.1
ClimateAction-3.2.2
Improve
EnergyEfﬁciency

48-

AchievedMaterial topic

2023
TargetOrganize annual energysaving and carbon-reduction
event

2

Total water consumption by
tap water<65,000
CMD

Process water recycling
efﬁciency

Proportion of water
consumption in Taiwan
managed through water
network

ISO 46001 certiﬁcation
compliance rate in Taiwan

Financial beneﬁts growth rate
(Base year: 2017)

93%

85%

60%

68%

The weight proportion ofrecycled materials used in
special-speciﬁcation products(Base year:2021)-

Ratio of recycled materials
certiﬁcation for the circular
economy supply chain>90%

Continue to expand thecircular economy supply
chain (number of suppliers)

43

2024
Target2025
Target2026
TargetResponses

AUO organized various activities such as "Plastic Reduction
Month" and events in response to Earth Day to promote
environmental consciousness. We also organized material
sharing activities to encourage colleagues to reduce carbon
emissions and plastic waste. These soft activities serve to raiseawareness and translate it into action among employees.

2

-

-

3.3.2
Management
Framework

AUO continues to focus on three main directions, includes water
reduction, water creation, and value chain water conservation, toreduce their reliance on tap water.

<64,000
CMD

-

-

3.3.1
Target &Performance

AUO applies AIoT technology in its process and facility water
extraction systems to automate equipment and optimize
processes. AUO also implement waste water classiﬁcation andresource utilization measures, continuously improving the
efﬁciency of process water recycling year by year.

93%

-

-

3.3.1
Target &Performance

In 2020, AUO developed the "POU (Point of Use) Water Network"
which enables the integration of external water information, realtime monitoring of equipment operations, and the notiﬁcationof abnormalities. The water consumption in the Taiwan sites has
been 100% managed through the Water Protection Network,
resulting in water savings of more than 1.7 million metric tons.

90%

-

-

3.3.2
Management
Framework

In 2020, AUO initiated the implementation of ISO 46001 in
Taichung fab. In 2021, AUO became the ﬁrst in Taiwan toattain the ISO 46001 certiﬁcation and have been continuously
expanding the scope of veriﬁcation. By aligning withinternational standards, AUO aims to establish a pragmatic andrigorous management mechanism while striving for continuous
optimization.

100%

-

-

3.3.2
Management
Framework

145%

3.4.1
Circular
EconomyPerformace2023 Our actions

performance:
5

performance:
56,897CMD

performance:
95.02%

performance:
100%

performance:
60%

performance:
234%

In 2023, AUO achieved a total ﬁnancial beneﬁt of NTD 14.39
billion through initiatives such as designing and selling circular
products, implementing process material recycling, waste
reduction technologies, and green logistics.

In 2023, AUO incorporated recycled materials into over 150 new productdevelopments. This is part of our ongoing efforts to advance towards our goals for2024.

performance:
98%

performance:
41

Not Achieved

AUO continues to establish a circular economy supply chain with
42 related suppliers. Among them, 41 suppliers have obtained
third-party certif ication for recycled materials, accounting for
approximately 98% of the total.

110%

135%

30%

30%

30%

3.4.1
Circular
EconomyPerformace

>90%

>90%

>95%

3.4.1
Circular
EconomyPerformace

58

64

86

3.4.1
Circular
EconomyPerformace

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report72

3.1 Climate Action
World
NO.1

AUO Climate Action Milestone

Taiwan
NO.1

2005

2008

2011

2013

Obtain ISO 14064
greenhousegas emission
veriﬁcation

AGS(AUO Green
Solution)

World NO.1
Obtain ISO 50001
energy management
system veriﬁcation
2019

Taiwan NO.1
Obtain PAS 2060
building carbon
neutrality certiﬁcation.

2020
World NO.1

Obtain UL 3600 Circularity
Certiﬁcation for recycledplastic displays

2014
100% installationof ﬂuorine gas
destruction
equipment
2018

International
standard

Policy2015

2016

100% processes
water recycling(Longtan)

Implementationof internal carbon
pricing

2017

Establishment of Energy-saving
working group
Adopt TCFD

CSR committee transformation

Solar self-consumption (Kunshan)

Taiwan NO.1

Register carbon offset credits

Establishment of a new venture(AUO Envirotech)Obtain IPMVP veriﬁcation

2021
Obtain ISO 14064
greenhouse gas emission
veriﬁcation for the newversionTaiwan NO.1
Obtain ISO 46001 water
resource management
system veriﬁcation
Achieve alignment with
SBTi (below 2° C)

Tool &
technology

Organization

ESG and Climate
Committee transformation
Advocate for the Taiwan
Climate Partnership
Sign the Recycling Water
Agreement (Taichung)

2022

2023

Become a member of RE100
Declare a net-zero goal by
2050
Participate in the Taiwan Net
Zero Action AllianceDeclare a
biodiversity policy
Declare plastic
neutrality goals
First participationin COP28

3.1.1 Governance & Strategy

Publish TCFD report
Participate in the
Ministry of Economic
Affairs Program

Achieve alignment with
SBTi (below 1.5°C)
Obtain carbon offset credits

Board

Board
Level

Governance Organization
AUO places impor tance on the governance func tions of high-level
management regarding climate change. The board of directors, being thehighest management and decision-making unit of the company, formulates
risk management under climate change based on the company's businessstrategy and industrial environment, and supervises the effective operation of
the management mechanism. AUO includes all significant decision-making
topics related to climate risk in the board of directors' report, enabling theorganization's top management to effectively lead the company in dealing
with the challenges brought about by climate change and ensuring legal
compliance. The Sustainability and ERM Executive Committee is responsible forcoordinating sustainability development and climate action, including setting
and tracking goals, coordinating resources, and other tasks.

2024

Management
Level

WorkingGroup

The board of directors is the highest management and decision-making body thatoversees the effective operation of climate governance mechanisms.
Sustainability and ERM Committee
Overseeing the sustainable development policies, systems or related management
directives, and proposing and implementing speciﬁc promotion plans, as well as making
decisions on energy development, green manufacturing, value chain management,
circular economy, and carbon energy operations.
Sustainability and ERM Executive Committee
Proposing and implementing the annual project plans, and reporting results in thecommittee meetings.

Energy-saving Working
group(includes TCFD
platform)

Circular
EconomyWorkingGroup

ESG Digital
Transformation
Working Group

Depending on different tasks, operating across functions.

Plastic
WorkingGroup

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report73

2023 Highlights

Policies and Goals
Announcing the biodiversity policy
Establishing and implementing
the plastic neutrality goal andstrategy

Accelerating Investments

Improving Carbon Management

Continuing investments in theenergy industry

Developing a Carbon Digital Platform, promoting
decision making and management of carbon assets

Accelerating the funding demand
for renewable energy

Promoting more aggressive SBTi carbon reduction
goals (to limit global warming to 1.5C)

Expanding the Ecosystem
The Chairman and CSO lead theteam to the side event of the
COP28.

Climate Strategy
In 2022, AUO constructed a strategic climate blueprint through six major task platforms, laying a solid foundation for a low-carbon transition. AUO continues to operate stably, paying close attention totrends, dynamically adjusting various tasks under the net zero goal, and closely linking the operations of each platform, guiding the company towards the vision of a low-carbon transition.

TargetTargetDevelop advanced technology for low-carbon
operations and business opportunities

Reinforce the operational resilience of the value
chain's low-carbon transition

Mission2023 Achievements

2023 Achievements

Mission● Conduct an inventory of internal and external
technical resources● Exchange emerging technologies throughindustry academia and cross-disciplinaryinteractions● Formulate carbon footprint evaluation
methodology

Develop recycled materials
and low energy consumption
technology, and develop low
carbon production process
technology.

Following the carbon
reduction target, we call on
suppliers to jointly respond toplastic reduction initiatives.

● Consolidate ﬁnance, renewable energy, public
sector, and related auxiliary resources● Monitor the suppliers' sustainability performanceand risk management● Supplier engagement, co-prosperity, and growthTargetCreate an ESG data stream integration andapplication mechanism

MissionPromote digital carbon management
Establish an ESG database andcommunication and decision-making center

Target2023 Achievements
Collaborating witha consulting teamand professional
business software todevelop a digitizedcarbon management
system.

MissionDraw up the training blueprint of the Collegeof ESG
Launch learning courses and activities for all
employees

6 key

DigitalTargetAdvanced deploy for climate and low-carbon
business opportunities than trend of the laws andregulations

SupplyChain

Technology

2023 Achievements
Through AUO's digital green
solutions, assist industries intransitioning to low carbon.
AUO' overall renewable energy
power plant installation capacity
is over 500MW in scale.

Knowledge

missions

Business
opportunities

2023 Achievements
Through theCollege of ESG, a
total of 34 courses
were held, reaching
29,980 participants.

Establish the expertise and knowledge of all
employees through diverse means

MissionSearch for new business opportunities andnichesIntroduce the insights of experts, scholars, andconsultancies

TargetBrand

2023 Achievements
Participate in the side event of
COP28, engage in dialogues
with stakeholders who areglobally concerned aboutclimate issues, and convey
key messages to colleagues
worldwide.

Enhancing diverse communication and showcasing
company transformation achievements

MissionStrengthen AUO's biaxial transformation andgreen values
Team up with ecosystem partners to generate
new business opportunities

CONTENTS

1 Business
Operation

Material Topics

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

74

Signing of RE100 global initiative

Responding to Climate Initiatives
In 2022, AUO ofﬁcially became a member of the global renewable energy initiative RE100, and is also the ﬁrst company in the global display manufacturing industry to commit to using renewable energy
completely by 2050. After passing the Science-Based Targets (SBT) for a WB2C warming scenario in 2021, it has set more challenging carbon reduction goals, passing the SBT for a 1.5C warming scenario
in 2024. AUO is also a founding member of the Taiwan Climate Alliance, and has joined the Taiwan Net Zero Action Alliance initiative, expressing its willingness to work with industry partners to promote
carbon reduction actions.

Key Targets

Key Targets

Key Targets

Key Targets

Key Targets

Set in a scenario of limiting global
temperature rise to 1.5℃ , based on
the year 2021, the target is to achieve
an absolute carbon reduction of
42% by the year 2030.

30% use of renewable energy by 2030
and 100% use of renewable energy by
2050.

Create the TCFD operation
management framework to reinforce
climate risk and opportunity
governance.

Unleash industrial impact and lead
Taiwan's supply chain to comply
with the international carbon
reduction pathway.

Achieve the target of net zerofor all AUO’s ofﬁce by 2030 andnet zero for all AUO’s operationalboundaries by 2050.

Action Taken

Action Taken

Action Taken

Action Taken

Action Taken

AUO is continuing to move forward
on our Phase 1 SBT carbon reduction
targets. The targets are also beingaligned with AUO commitment to a
30% absolute reduction in electricity
consumption and RE30 targets in
response to external stakeholder
expectations on Scope 3 reductions.
AUO remains committed to Phase
2 SBT carbon reduction targets
based on the 1.5°C carbon reduction
scenario.

AUO is actively developing renewable
power plants for self-generation andself-uses. We are also negotiating
Corporate Power Purchasing
Contracts (CPPA) and investingin a range of green electricity
solutions tailored to local conditions.
Multilateral engagement is employed
to promote renewable energy policies
that support the vibrant growth of
the supply-and-demand market andco-create an even more sustainable
development environment together.

Climate-related ﬁnancial disclosure
reports were published to provide
external stakeholders with a full pictureof governance accomplishments andinformation relating to climate risk
and opportunities at AUO.

Accelerated the promotion ofcarbon reduction initiatives in thevalue chain to enhance industry
resilience together. The AUO
Chairperson attended COP28 inperson to bring AUO’s experienceon promoting digital transformationand green innovation to theinternational stage.

Focused on realizing net zerobuilding at AUO head ofﬁce.
Experience with carbon reduction
at Head Ofﬁce will be replicated atother ofﬁce locations in the future
to realize progressive targets.

3.1.2 Climate Risk
Adaption

The TCFD report
can be found in the
Downloads section of
the AUO website.

Key Focus on Climate-related Opportunities & Risk

In response to the issue of climate change, AUO
has adopted strategies of adaption and mitigation.
In terms of adaption, they use the TCFD framework
to identify the climate risk scenarios across theentire company and implement PDCA cycle
management.
Opportunity

Green manufacturing and innovation of
low carbon products

The impact of carbon tax on
operating costs

Development of renewable energy
opportunities and expansion of the market

Extreme climate affecting thecontinuity of operations

Leveraging climate inﬂuence to reducecarbon with value chain
Capturing green opportunities & deepen
customer engagement

Risk

The demand for low carbon
production and technology
Involvement in low carbon targets
to improve operating costs

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Climate-related Risk Cases Over the Years
2019

Year

Climate regulations
Operational external costs/
compliance risks
Transformation Scenario
IPCC SSP1-1.9 warming
scenario, considering the net
zero target

Technology

MarketReputation

Market/brand-driven
Technology-driven market
positioning

2020

Physical Scenario
IPCC SSP5-8.5 warming
scenario, BCP managementwith the assumption of
uncontrolled warming.

Disruption risk tooperations

2022

2023

5

6

Emission reduction
Strengthening emission
reporting obligations
Low carbon footprint
products
R&D of low-emission
technology transformation
Failed investment in newtechnology (infrastructure)
Market information
uncertainty
Changes in customer
behavior

2 cases

Rising raw material costs

Climate emergency

2021

Increasing the pricing ofgreenhouse gas emissions
Facing litigation risks (legal
compliance)

Increasing external concerns
and negative feedback
Stakeholder concerns andnegative feedback

2 casesIndustrial Stigmatization
Climate system changes:
increased rainfall/temperature rise
Extreme weather events
such as typhoons and ﬂoods
Number of cases

2 cases656Management Process
Identiﬁcation & Evaluation
During the annual risk identification survey, climate andcarbon management related issues are taken into account,with risk classif ication being conducted according
to the TCFD f ramework. Additionally, climate-related
opportunities are reported to the Sustainability and ERM
Committee.

Implementing PDCA management for risk issues
Evaluate themanagement
measuresfor ﬁnancial
impacts
and impact
mitigation ineach scenario● Hypotheticalrisk scenario● Document and reportannual outcomesManagement
High-risk issues are included in thefocus risks of the risk identification
operation for tracking and managing.

75

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Climate-related Risk Matrix

Fact
Sheet

Appendix2023 AUO Sustainability Report76

Climate Risk Diagram
High

5.00

4.00

Risk Impact

AUO has completed a total of 165 climate risk
identif ications, among which there are 11 highrisk ones (accounting for 6.6%); 75 medium-riskones (accounting for 45.6%); and 79 low-risk ones
(accounting for 47.9%).

Subsidiary

3.00

2.00

Extreme weather events
Strengthening emission
reporting obligations
Industrial
Market information uncertainty
Increasing the pricing of greenhouse
Stigmatization
Climate system changes:
gas emissions
Rising raw
Infrastructure failure
increased rainfall/material costs
Low carbon
temperature rise
R&D of low-emission technology
footprint
Product service products
transformation
Stakeholder concerns andrequirements
negative feedback
and regulations
Changes in customer behavior

1.00

Note: Forms with the same category areplotted based on the average results.

Low

0.00

High

3.00

3.25

3.50

3.75

4.00

4.25

4.25

4.50

4.75

5.00

Control Uncertainty

Climate-related Risk Management
AUO drew on the insights of both internal/external experts and academics to predict the potential business risks to the Company from climate change challenges. The ﬁnancial impacts were assessed
and response strategies drawn up. AUO has worked through the TCFD platform over the years to steadily expand our climate risk management in the corporate operations aspect. We also continued to
track the latest developments in global climate issues so that we can prepare early for any risks and take advantage of potential opportunities.
Material Topics

Number of projects that have completed the risk assessment and management processes

Climate-related Risk Issue
Risk
Assessment

Physical
Risk

AspectTopic Scenario

Stakeholder

Operations

China sites impacted byextreme weather events
such as heavy rains andﬂooding

AUO,
Customer,
Supply Chain

Potential Risk
Flooding of China sites in low-lying
areas
Transportation system disrupted
by ﬂooding in coastal region
downstream of large rivers.

Impact Time
Frame

Short-term(within 2 years)

Financial
ImpactLow

Management Approach
Review the adequacy of ﬂood protection
software and hardware facilities based on
historical ﬂood and meteorological data.
Mentor suppliers in low-lying areas on having
proper ﬂood response measures in place.

CONTENTS

Risk
Assessment

1 Business
Operation

Aspect2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

Topic Scenario

Stakeholder

Market,More stringent targets set
Technology by international initiatives

Transformation
Risk

AUO,
Customer,
Investor

Subsidiary

Reputation

MarketExcessive requirements or
expectations from brandcustomers on renewableenergyAUO,
Customer

Key supply chain lackthe potential to meetthe requirements of lowcarbon transformationand climate resilience

AUO,
SupplyChain

Preparation for disclosure
through the new type of
Policies andclimate-related ﬁnancial
Laws
reports that stakeholders
are concerned about

AUO,
Investor

AUO

Fact
Sheet

Impact Time
Frame

Potential Risk
Greater demand for climate accountability andtighter brand requirements may lead to loss oforders and revenue if targets are not met
More rigorous SBTi targets that increase carbon
reduction costs
Impact on the environment, ecology and biodiversity from land development by the industry

Improper developmentin the industry triggeredby green energy projectvendors

Market5 AgileInnovation

Obstruction or public opinion on power plantdevelopment that negatively impacts on thebrand
Loss of orders for not meeting customer
requirements (carbon reduction or use ofrenewable energy)

Financial
ImpactShort-term(within 2 years)

Lack of supplier consensus on climate crisis
meant carbon reduction target is not met,
resulting in loss of orders, carbon taxes and otherimpacts on cost
The presentation and disclosures in the ﬁnancial
report may not meet stakeholder requirements
Information and communication cap leading to
doubts among shareholders, investors, ﬁnancing
or loans.

Medium2023 AUO Sustainability Report

77

Management Approach
Improve carbon reduction in production processes
and increase usage of low-carbon energy to reducecarbon emissions during product manufacturing
Continue to monitor how SBTi advocacy is affecting
the direction of standards development in theelectronics industry
Site selection and development based on
environmental laws and regulations

Long Term(More than 5
years)

Select green construction techniques that areenvironmentally friendly and protect the ecologicalenvironment against damage before start ofconstruction

Low

Short-term(within 2 years)

Conﬂict from co-opetition and businesscompetition from the green electricity
requirements of critical customers

AppendixMediumMedium-term(2 ~ 5 years)

Medium-term(2 ~ 5 years)

Strive to meet customer expectations byimplementing energy efﬁciency and carbon
reduction measures
Maintain sound customer engagement and create
opportunities for cooperation

Low

Maintaining sound engagement with suppliers anduse a rating management mechanism to boost
supplier willingness and ability on carbon reduction,and lower the threshold for realizing carbon
reduction targets
Periodically monitor government regulations andlegislative progress

Low

Optimization of data veriﬁcation process and set up
information platform to enhance the accuracy andtransparency of data

Climate-related Opportunity Issue
Opportunity
Type

Energy SourceEnter Market

AspectTopic Scenario

Operations,MarketUse of low-carbon
energy during
production andmanufacturing,participate inrenewable energy
investment,
operations, and sales

Technology,
MarketSatisfy the needsof industrial
transformation
through smart
management andlow-carbon solutions

Note: EPC: Engineering, Procurement, Construction.

Stakeholder

Potential Beneﬁt

Impact Time
Frame

Financial
Beneﬁt● Join the RE100 global initiative and progressively increase
the ratio of renewable energy usage every year

● Reduce the ﬁnancial cost of carbon fees andtaxes through low-carbon production
AUO,
EnergyCustomer

Supplier,
Customer● Global green brand customers mandating theuse of low-carbon energy in the supply chain● Investment in renewable energy businesses
to satisfy the imbalanced supply and demandin the current renewable energy market● Invest in smart production solutions, improvecustomers’ energy efﬁciency, and create
opportunities for carbon reduction● Invest in carbon management, water, andcircular economy ESG solutions to create new
ESG business opportunities

Management Approach

Short-term(within 2 years)

Medium● Strengthen participation and engagement with green
brand customers to create green business opportunities
together● Accumulate management experience in energy creation,
storage, and EPC (Note) to prepare for the renewableenergy market.

Short-term(within 2 years)

Low● Assist value chain partners such as suppliers andcustomers with their low-carbon and sustainability
transition through Go Premium technology● Integrate solutions through Go Vertical to create morecompetitive businesses groups for the Company

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

78

Risk Management Cases
AUO conducts an inventory of potential climate risks every year and deﬁned 5 risk topics in 2022. In 2023, we began evaluating and managing risk topics including the impact of carbon fees and tariffs,
stability of electricity supply, green washing or related disputes due to improper disclosure, natural disasters and the insurance market. Listed below are topics with transformation risks that have asigniﬁcant effect on ﬁnancial impact and business continuity.

Case 1The effect of importing countries’ CBAM trade tariffs on
products exported by the ICT industry

Scenario:
Increase in costs due to the Carbon Border Adjustment Mechanism (CBAM).
Financial impact:
AUO is asked by customers to absorb CBAM costs and this may increase costs byapproximately 1.23%.
Response strategy:
AUO will continue to focus on process optimization, development of lowtemperature processes, and improve the energy-efﬁciency of our equipment to
reduce carbon emissions from the production process. For renewable energy, AUO
plans to increase the amount of self-generated solar power in the short term; in themedium and long-term, AUO plans to purchase more solar and offshore wind power
even as we continue to monitor supply-an-demand, technology, and developmentsin the renewable energy in the market in the medium and long-term in order tomitigate CBAM-related impacts.

Case 2The effect of adjustments to the carbon fee/taxation
mechanism in each country

Scenario:
Countries that have already levied or will soon levy carbon taxes (fees) increasing
their rates even further to push for carbon reduction by businesses leading tohigher costs.
Financial impact:
Singapore’s carbon tax for example will cost NT$7 million to NT$8 million per
year; if carbon taxes (fees) are imposed by more countries (regions) this will leadto higher costs and fees.
Response strategy:
AUO’s main base of production is located in Taiwan. Unlike other countries that
imposed carbon taxation, Taiwan will soon begin levying carbon fees and thiswill be the main source of impact for AUO. AUO is working to reduce the impact
of carbon fees on operations through a three-pronged strategy for evaluation,
management, and reduction that includes reducing the consumption of energy
resources during the production phase and product transition.

Case 3
Grid vulnerability due to electricity shortages and rising level of renewables in Taiwan
Scenario:
A combination of factors including structural transformation of energy supply, aging power infrastructure, and growing power demand means that AUO sites may suffer loss of
production due to power supply problems such as power restrictions and voltage drop.
Financial impact:
Based on incidents of voltage drop between 2017 and 2023, total losses at our sites in Taiwan due to voltage drops amounted to approximately NT$93 million a year.
Response strategy:
Sudden voltage drops may lead to production disruptions, equipment damage and other anomalies in the electronics manufacturing industry. AUO undertook various measurestargeted at the causes of such voltage drops including reviewing the capacity of voltage regulation equipment for machinery, assessing the introduction of energy storage equipment,
improving the energy efﬁciency of equipment, and commissioning academic units to conduct research on power quality and improvements in an effort to reduce the potential ﬁnancial
losses from the risk of sudden voltage drops.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report79

3.1.3 Metrics & Targets
Indicators

Organizational Carbon
Emissions(Scope 1 and Scope 2)

Base
Year

Target2021

2030
42% reduction in absolute carbon
emissionsManagement Approach
Improve energy efﬁciency: Continue to promote energy efﬁciency improvements through ISO
50001 as well as production automation, smart technology, upgrades, and light-assetization
Use of renewable energy: Use wheeling from power plants established by AUO while
continuing to add COOA and I-REC from diverse renewable energy sources

Corresponding
Chapter
3.2.2
Improve Energy
Efﬁciency

Carbon reduction for raw materials: Require suppliers to engage in carbon reduction. A targetof 20% reduction in carbon emissions by 2030 is also set for critical suppliers
Indirect Emissions(Scope 3)

2021

Improve energy
efﬁciency

2021

Ratio of Renewable
Energy-2030
25% reduction in absolute carbon
emissions

Carbon reduction for raw combustibles: Reduce carbon emissions form the development
stage of raw combustibles through reduced consumption of electricity and fuel

2030
Reduce power consumption by 30%

Continue to promote energy efﬁciency improvements through ISO 50001 as well as production
automation, smart technology, upgrades, and light-assetization

3.2.2
Improve Energy
Efﬁciency

2025
10%

Use wheeling from power plants established by AUO while continuing to add COOA and I-REC
from diverse renewable energy sources

3.2.2
Improve Energy
Efﬁciency

2030
30%

2050
100%

2024
14,000 CMD (Note)

Product energy consumption during use: Use improvements to materials and power
consumption during the product design phase to help products conform to future EnergyStar scenarios on energy-efﬁciency performance standards

Reclaimed water from the development zone’s wastewater treatment plant has been introduced
at the Kunshan site to provide a reliable source of water supply for all production processes at the
site

3.2.1
Inventory &Mitigation

3.3
Water Resource
Management

Use of reclaimed
water

-

Use of reclaimed
materials-

2024
Use up to 30% recycled materials by
weight in special products

Plastic reduction-

2030
Plastic neutrality

The goal of achieving plastic neutrality by 2030 has been announced by AUO. The 3R+1 strategy isused to set the implementation approach and targets for the two main categories of production
process and employee ofﬁce life. The strategy will be progressively implemented over multiple
years

3.5
Biodiversity

Carbon reduction in
the value chain

2021

2030
Absolute reduction by 20%

AUO and 60 critical suppliers have now jointly committed to a target of a 20% in absolute carbon
reduction by 2030. The goal will be progressively achieved by carrying different tasks during theInventory, Target Setting and Implementation Phase

2.4
Responsible
Supply Chain

A contract has been signed between AUO and Taichung City’s Shuinan Water Recycling
Center to begin supplying water from 2024 onwards
Continue to reﬁne the technology for recycled and reclaimed materials while also introducing
third-party certiﬁcation

3.4
Circular & Clean
Production

Note: This includes the Kunshan environment assessment requirements and reclaimed water from Shuinan in Taiwan. The target will be affected by the timing of the reclaimed water supply from
Shuinan.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

Net Zero Pathway

5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report80

Net Zero & RE100 Pathway
RE100 goal

The SBTi Phase 1 carbon reduction target (25% reduction in absolutecarbon emission by 2025 with 2018 as the base year) has alreadybeen met ahead of schedule in 2022. AUO is now following a visionof a more aggressive low-carbon transformation by proposing a 42%
reduction in absolute organizational carbon emissions (Scope 1+2)
by 2030 with 2021 as the base year based on the 1.5°C scenario; forindirect emissions (Scope 3), AUO is proposing to conform with theWell Below 2°C (WB2C) target of a 25% reduction in absolute carbon
emissions.

SBT goal 2018-2025

SBTgoal 2021-2030

AUO emissions (10,000 tons)
100

400

357
344

350

357

331

314

301

90

(WB2C) 25%
318

300

292
292

80

306
278

250

293

280

70

267

265
246

60

(1.5°C) 42%

243

200

3.2 Carbon & Energy

100

50

170

40

150
30

30

100

3.2.1 Inventory & Mitigation

20

50
0

GHG Inventory

2018

2019

2020

2021

1.1

2.2

5

2022

2023

2024

10

10

0
2030

2025

2050

AUO began inventorying the GHG emissions of our global manufacturing sites in 2003, and introduced the ISO14064 standard to disclose emissions-related information through external veriﬁcation. We
developed a digital platform internally in 2010 to systematically manage the organization's GHG emissions as a means of managing long-term operational carbon reductions. In 2020, the latest ISO14064
standard was introduced to continue reﬁning GHG inventory management.
Scope 1&2
2003

2005

The ﬁrst
year ofGHG
inventory

2006

Introduced ISO 14064-1
third party veriﬁcation, andobtained declaration for all
plant areas

2007

2009

Responded to CDP's
disclosure of the carbon
management Mechanism
Counsel the supply chain to
introduce GHG inventory

2010

2011

ECA platform for systematicmanagement
Conducted inventory andveriﬁcation demonstration plan
Expanded the required inventory
target for suppliers

2012

2015

Participated in the promotionof all GHG projects of the EPA

Preliminary project veriﬁcation,exchange method formulation,and declaration management
for temperature control method

Add inventory items (5 items)

Started the Scpoe3 carbon
inventory of the value chain(1 item)

Wastes, employee commuting,subsidiaries, fuel energies

Employee business travel

2023

2021

2020

Add inventory items(10 items)

Add inventory items(9 items)

Introduced ISO14064- 1:2018
and obtain certiﬁcation

Upstream leased assets

Upstream leased assets

Carbon credit offset method
approved by EPA

The ﬁrst in the panel industry

2019

Developed the systematicmanagement of Value
Chain Accounting (VCA)
platform

2018

2016

Expanded the scope of inventory(8 items)
Raw materials of upstream anddownstream transportation andpurchase

Scope 3

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report81

Emissions & Intensity (Scope 1&2)

Other Indirect Emissions (Scope 3)

AUO's global GHG emissions in 2023 totaled 2.43 million tons of CO2e, mainly consisting of
indirect power consumption emissions, accounting for of the Company's total 97.25%. This isfollowed by direct emissions (2.75%) generated by the production processes using PFCs andfuel emissions from utility systems, accounting for. In 2023, the GHG emission per input sheet
substrate area was 44.06 kgCO2e/m2, a 14% decrease compared to 2022.

AUO has established a company-level Scope 3 greenhouse gas inventory and disclosure since2010 and has expanded the scope of investigation in line with the corporate value chain standards
published by the GHG protocol. In 2020, the latest ISO 14064 standards were introduced inconjunction with a third-party verification to further manage GHG emissions and other indirectemissions (scope 3). AUO has categorized other indirect emissions into 4 categories based on thecurrent conditions and the new ISO 14064 materiality selection principle. A total of 11 items were
calculated in 2023.

7 Materiality Selection Principles❶ Data collectability❺ Industrial relevance❸ The scale of emissions is relatively
large based on experience❼ Corresponding tocompany's reduction
actions

Type❻ Stakeholders' level ofconcern❷ The data calculation method isreliable or representative❹ Frequency of activities

Indirect GHG Emissions from Products Usedby the Organization (Upstream)

A

B

C

D

Applicable to
AUO, and has
been quantiﬁed

Applicable to AUO, andhas not been quantiﬁed.
AUO has plan ormanagement methods

Applicable to AUO,
but there is noquantitative plan

Not applicable
to AUO

10 items

0 items

1 items

4 items

Unit: tons

Item

Type

2023

2022

2021

a. Purchased products andservicesA

825,778.96

472,378.32

616,395.1

a. Using previous product carbon footprint inventory conducted by AUO as the basis tocalculate the materials needed during production, main carbon emissions from the productraw materials stage are used as the reference for calculating this item. The item includes
glass substrate, liquid crystal, photoresist, developer, etchant, array stripper and thinner, etc.

b. Fuel and energy related
activities

A

479,272.0

b. Calculate AUO's energy consumption including diesel, LPG, natural gas, and electricity, as
well as calculate fuel energy related emissions using the energy resource cradle-to-gatecoincident announced by the EPA.

c. Wastes generated during
the production processA

1,687.10

18,126.84

25,661.0

d. Capital goodsA

163,597.90--

e. Upstream leased assets

D(no upstream
leased assets)

242.72168.6

1,438,790.89

893,744.79

1,121,496.7

447,726.93

402,996.91

-

Total

c. Calculate GHG emissions generated during the ﬁnal waste shipping and treatment processincluding sludge waste, waste solvent, glass, acid, EAF dust, empty barrel and scrap metal. If
the aforementioned items have not reached at least 80% of the total waste disposal volume,
new items will be added to the calculation.
d. AUO reviewed the process of property identiﬁcation, evaluated the feasibility of collecting
carbon emission calculation information, and calculated the assets to be included in theannual inventory with asset identiﬁcation numbers. This project was included in Category 3
inventory scope by 2023.
e. AUO calculates energy consumed by our leased off ices in Taiwan and abroad including
diesel, LPG, natural gas, and electricity, as well as calculates fuel energy-related emissions
using the energy resource cradle-to-gate coefﬁcient announced by the EPA.

1 Business
Operation

CONTENTS

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

Indirect GHG Emissions Generated by Transportation

5 AgileInnovation

Type

2023

2022

2021

f. Upstream transportation
emissionsA

639,882.00

3,092.71

7,972.0

g. Downstream
transportation emissions

A

25,539.61

31,004.97

67,284.9

h. Business travel

A

978.92

1,051.32

869.0

i. Employee commuting

A

13,342.18

21,764.02

38,732.7

679,742.71

56,913.02

114,858.6

Indirect GHG Emissions from the Use of the Organization's
Products (Downstream)
Unit: tons
Item

Type

2023

2022

2021

Investment processA

37,147.04

53,828.04

49,729.2

k. Processing of products
sold

C

-

-

-

l.

D

-

-

-

j.

Use of products soldAppendix2023 AUO Sustainability Report82

f. AUO calculates the greenhouse gas emissions caused by transportation of directmaterials purchased for production use from the supplier's shipment location (actual
address or representative factory selected f rom the website) to the company's
receiving plant, excluding transportation between company plants. For the scope
three improvement calculation at AUO, there have been changes in the calculation
scope this year. Compared to previous calculations that only included four major
material numbers, all direct materials purchased are now included in the upstream
transportation. calculation.
g. Products delivered by all the factories in the year (including the contractors' factories)
are included in the calculation, but the transportation of front-end products to the
OEM is excluded. GHG emissions are generated by land transport to the port or
airport, or sea freight/air freight to the destination port/airport, but excluding transport
between the factories and OEM factories.
h. Calculate the GHG emissions of AUO colleagues through the business trip
travel system; the individual emissions will be calculated according to means oftransportation applied for reimbursement including airplanes, high-speed rails, rental
cars, self-owned cars, taxis, etc.
i. Calculate the GHG emissions of all employees in the plant, including direct employees
and indirect employees. Commutations to and from work and shuttle buses between
plant areas, the shuttle bus for foreign employees commuting to and from work arealso included in the calculation.

j.

D

-

-

-

n. Downstream leased
assetsA

14,873.54--

o. Franchise

D

-

-

-

49,729.2

53,828.04

14,873.54

AUO Crystal Corp. is a wholly-owned manufacturing subsidiary of AUO. Since it
conducts GHG inventory every year, its emissions are included in the calculations

k. This item applies to AUO; however, since there is no relevant methodology andinformation collection platform at present, therefore, it is excluded according to thecriteria for the signiﬁcance of indirect emissions
l.

m. Final processing ofproducts sold

Total

Fact
Sheet

Unit: tons

Item

Total

Subsidiary

AUO is a B2B company and we do not manufacture end products, therefore this item
is not applicable

m. AUO does not manufacture end products, therefore this item is not applicablen. Clarifying the assets leased by AUO, primarily ofﬁce buildings, this project calculates
the carbon emissions generated by tenants using AUO's assets.
o. AUO has no franchise

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix83

2023 AUO Sustainability Report

Reduction Target & Achievement
In response to SDG 13 Climate Action, AUO proposed a carbon reduction goal in 2018 of achieving a cumulative reduction of 6.5 million tons of carbon emissions based on the life cycle. As of 2023, thecumulative reduction of carbon emissions has reached 10.05 million metric tons, achieving and exceeding the target in advance.

Approach

Organizational

Product

Supply Chain

Raw Materials

Scope 1+2

Scope 3

Scope 3

Scope 3

Based on the SBT WB2C scenario
set an absolute carbon reduction
targetEvaluate the carbon emissions of the whole
life cycle according to the PCR of various
products

Set the target to reduce carbon
emissions by 20% by 2030

Minimize the use of raw
materials

Regularly collect and monitor the
suppliers’ carbon reduction statusthrough the SCM CSR Portal

Increase the recycling rateof raw materials

Continuously expanding the supply
chain to collectively participate
in energy saving and carbon
reduction, reducing carbon by
98,000 tons annually

Improve manufacturing
efﬁciency through smart
material network

Based on the carbon emission intensity
during product use, 100% of the shipped
products are converted into carbon
reduction in the baseline year (2017)
Indirect energy carbon reduction by
0.52%
2023
Achievements

Absolute reduction YoY 0.63%;
intensity reduction YoY 14.38%

Reduced carbon emissions by 1.83 million
tons annually through product shipping
combinations and energy-saving design

Introduced renewable energy at
2.2% (mainly in China)

Reduced carbon emissions
by 170,000 tons comparedto the base year throughraw material

Note: Product Category Rules
Internal carbon pricing (NTD/tons)

Internal Carbon Pricing
Since the Paris Agreement came into effect in 2016, AUO has beenpromoting an internal carbon pricing mechanism, monetizing
the carbon costs derived f rom external climate control policies
into the company’s internal carbon price. In order to be closer
to the future development scenario of carbon reduction path in
the manufacturing industry, AUO adjusted our internal carbon
pricing methodology in 2023, incorporating the costs of the energy
supply market and the impacts of public sector policies into its
estimation factors. In 2023, we announced an internal carbon priceof NTD6,242, 5 times that of the previous year, relative to an externalcarbon emission cost of NTD3.09 per kilowatt-hour. AUO continues
to apply this carbon price for the benefit assessment of its green
manufacturing energy-saving investment schemes, allowing us tomore accurately consider the cost of carbon reduction under future
net-zero manufacturing activities.

Carbon price per kWh (NTD)

3.09

6,400

3.0

6,200
0.64

1,400

1,000
0.35

800

0.39

0

6,242

875
503

607

725

2017

2018

2019

0.6

0.45

0.27

400
200

0.7

0.55

1,200

600

3.1

1,099

1,258

0.5
0.4
0.3
0.2
0.1

2020

2021

2022

2023

0

CONTENTS

1 Business
Operation

Material Topics

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

84

Carbon credit management

Carbon Neutrality & Carbon AssetManagement
AUO has defined a carbon asset management strategy to promotefurther carbon reductions. Carbon assets are also obtained throughpilot and credit programs for enhancing green competitiveness. The
ﬁrst batch of carbon credits were obtained by AUO through the “SF6Destruction and Removal Equipment for Reducing Carbon Emissions
by the Flat Panel Display Industry.” Now that the regulatory regime isbased on carbon emissions pricing and carbon credit trading instead,
AUO cannot only use carbon credits to reduce the risk from carbon
fees and costs but also stimulate market activity through designatedtransfers. At the same time, AUO is also supporting the carbon
neutrality philosophy by applying some of the carbon assets to internal
initiatives such as organizational buildings, events, and promotion ofcarbon neutral activities (Note). Pro bono donations are also madetowards carbon neutrality projects in society.

AUO Head Ofﬁce Achieving Net Zero

Income from carbon offset credit

Expenditure from carbon offset credit

In 2013, AUO began installing equipment for partial
destruction of ﬂuorine gas. Advance carbon credits
were obtained by participating in the EPA advanced
reductions program

In 2023, carbon credits were donated to the
low-carbon tour event organized by theFoundation of Taiwan Industry Service to help
the event achieve carbon neutrality

In 2019, improvements were made to ﬂuorine gas
reduction management and another application
made to the offset program to convert carbon
reduction efforts into material carbon assets
In 2023, AUO received income from carbon credits
from phase 1 carbon offsets under the offset program

In 2023, carbon credits were used to achievecarbon neutrality for internal events suchas the Supplier Creating Shared Value
Conference and AUO Sports Carnival
Between 2014 and 2023, carbon
credits were donated to 21 external
events and 13 internal events

Note: The scope and boundary of carbon neutrality for internal events is limited to individual event. It
refers only to where carbon assets owned by the Company are used to neutralized the estimatedcarbon emissions of internal employee events, rather than carbon emissions from organizational
operations and production deﬁned by ISO 14064.

AUO showed our support for Taiwan Alliance for Net Zero Emissions (ATNZE) by promoting net zero buildings through a two-phase “Commitment and Achievement” process with thefollowing targets set for each phase: Achieve net zero at Head Ofﬁce in 2030, achieve net zero at 40% of ofﬁce locations in 2025, and achieve net zero at 100% of ofﬁce locations in 2030. The
Net Zero Buildings Team was set up by AUO in October 2021 to start inventorying net zero tasks. The net zero buildings initiative was launched at the AUO Head Ofﬁce in 2022 throughusing a four-step process of inventory, reduction, energy creation, and offsets. In 2023, we continued to promote and implement net zero buildings at Head Ofﬁce through the same fourstep process:Inventory

Annual inventory of GHG emissions was conducted using the deﬁned scope and boundaries of ofﬁces. The data was veriﬁed by a third-party (DNV) and used as thebaseline for net zero reductions.

Reduction

Implementation of carbon reduction measures such as optimization of power use, cultivation of sustainability character, environmentally f riendly facilities,
smart building management, and energy-saving IT equipment. Energy-intensive equipment such as water chillers and cooling towers were equipped. AUO alsocollaborated with group companies to improve power utilization and energy efficiency through intelligent management of smart building and smart offices;
participation in sustainability initiatives such as Earth Month and Earth Day brought people together to enhance and cultivate the sustainability awareness of
employees; establishment of net zero parking spaces and electric vehicle charging pillars fostered an eco-friendly atmosphere for employees to put net zero into
practice; construction of energy-efﬁcient data centers, hibernation of computer equipment, as well as the replacement and upgrading of computers helped toincrease carbon reductions.

Energy Creation

A rooftop power plant with an installed capacity of 111.52kW was built at the Head Ofﬁce. The
target annual power output of up to 145,338 kWh maximizes energy creation through selfgeneration and consumption of renewable energy.

Offsets

The maximization of voluntary reductions and energy creation was combined with T-REC
and carbon credits to realize the goal of net zero carbon emissions.

2023 was set as the implementation year for net zero at AUO Head Ofﬁce. In 2024, we continued to monitor andrecord the implementation of net zero buildings at the Head through ISO14064-1 GHG inventory, ISO 14068:2023
carbon neutrality standards, ATNZE review, and other measures. Net Zero at AUO Head Ofﬁce will be used as ademonstration and benchmark for the medium- and long-term promotion of net zero buildings at AUO. The
experience and technology will continue to be transferred by AUO through the four steps to net zero, reduction
technologies, development of smart sites, and cultivation of employee character to bring the beneﬁts of net-zero toeach site.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report85

3.2.2 Improve Energy Efﬁciency
The key resolution to “triple the world’s installed renewable energy generation capacity, and double rate of energy efﬁciency by 2030” passed by the COP 28 was consistent with AUO’s net zero strategy.
Having worked for many years on carbon reduction, the bulk of carbon emissions (98%) at AUO now consists of indirect emissions from electricity (Scope 2). For this reason, particular emphasis is given
by AUO to improving energy efﬁciency and accelerating the adoption of renewable energy.

Electricity Usage & Management
In 2023, AUO achieved annual energy savings of 137.91 million kWhagainst a backdrop of decreased power consumption and greatly
increased power savings. Energy savings for the year amounted to
3.30%, a new record. In terms of energy management, AUO adhered to
the ISO 50001 energy management system standard by implementing
energy management with continuous improvement. Employees
were also encourage to submit proposals for energy savings throughcompetitions and public recognition. In 2023, AUO employees
suggested 1,189 energy saving solutions. 54% or total energy savings
came f rom ref inements to manufacturing management at oursites while the remainder came f rom investment in equipment
improvements. In terms of measurement and veriﬁcation, up to 71% ofdata were estimates based on measured results with higher accuracy.
In 2023, total global power consumption of AUO was 4.56 billion kWH,
with process power consumption accounting of 00 4.28 billion k Wh.
AUO is continuing to introduce new measures to improve energy
efﬁciency. Due to the potential for drastic changes in future production
conditions and capacity, the 3030 Project will be implemented
through the Carbon Energy Group at AUO to identify more effectiveenergy-saving proposals.

Annual Energy Savings
Investment(10,000 kWh)

Process Power Consumption
Management(10,000 kWh)Manufacturing(million kWh)

Non-manufacturing(million kWh)

Annual energy
conservation rate
16,0004.0%

14,0003.30%

12,00010,000

2.19%

2.21%

8,000
6,000

7,444

7,158

6,706

1.5%

4,000
2,000
0

5,227

2019

3,428

3,726

2020

2021

2.5%
2.0%

7,043

5,895

4,672

2022

6,000
176
5,000

6,346

196

203
256

76.10

3,000
5,001
2,000

0.0%

72.25

85

77.62

80
75

4,170

4,278

4,885

1,000
0

280

71.85

4,959

1.0%
0.5%

2023

4,000

90

87.84

3.0%

2.57%
2.26%

3.5%

Power consumption per unit
(kWh/m2)

2019

2020

2021

70
65

2022

2023

60

Energy-Saving Strike Force
The “Energy Saving Strike Force” was set up and the “3030 Project” launched at AUO’s manufacturing operations unit in early 2023 to accelerate the realization of RE100 targets and improve energy
utilization. A phased target of reducing energy consumption by 30% (Note) by 2030 was set. Vertical and horizontal collaboration within factory units will hopefully generate synergies that accelerate andamplify energy savings. The energy-saving technologies accumulated by the 3030 Project will be introduced into new ﬁelds as well to become competitive green solutions.
Note: Based on the Company’s annual power consumption in 2021.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

863030 Project Roadmap
The 3030 Project assists factories with energy-savings operations through the “Three Methods, Six Dimensions, and New Development.” A dedicated energy-saving system will also be used to driveenergy-saving behaviors. The system will conform to the International Performance Measurement and Veriﬁcation Protocol (IPMVP) to ensure the substance of energy savings through on-site audits.
Among them, conducting an energy audit is a key component of the 3030 project. To carry out this task, AUO utilizes the “Golden Line” method to design an energy inventory process, measuring andcomparing the electricity usage of different devices at various levels. By doing so, they are able to understand the energy consumption at each stage, identify units with high energy consumption andunreasonable electricity discrepancies, and initiate energy-saving improvements and energy-efﬁcient technology development.

Three Methods

Innovations anddeconstruction
in energy-saving
behavior

Inventory of basic
power consumption
and enforcementof energy-saving
strategies

Integrationof budgeting
resources andenergy-saving
projects

Lean energy
savings

Low-energy
production process

In-situ
replacement

Investment
optimization

New energy-saving
types

Energy creation

The Energy-Saving Strike Force also introduced the “Energy Efﬁciency Methodology Golden Triangle of Energy Efﬁciency Management” to launch energy efﬁciency actions
along the three dimensions of organization, technology, and system to ensure theeffective implementation of energy savings at factories.
TargetSix Dimensions

New Development

Organization

Inventory

Technology
Research

Operation

Self-Veriﬁcation

3030

Continuous
Optimization

Development of Energy Saving Projects by Energy Energy-Saving Strike
Force

SystemDigital (IOT)
Transformation

Golden line
Down 3.5%

Starting withthe end

Energy savingrate 3.5%

Electricity
usage
assessment

Overall power
consumption record

One-time
measurement

Unit
disassembly

Implementationin practiceManagement
approach

Based on 80/20 rule, assess major
power-consuming units
Mainequipment

Auxiliaryequipment

Immediateexecution

Energy-saving
systemFactory

Product
validation

Other power
consumption

Investment
optimization

Methodology
introduction
Electricity
remeasurement
Closed-loop
management

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report87

Progress on 3030 Project Targets
For factory power consumption, AUO divided electricity usage into direct electricity use and indirect electricity use. Direct electricity use consisted for electricity used directly by equipment; indirectelectricity use consisted of electricity consumed by factory facilities for supplying water, gas, and chemicals. Inventories are now being conducted at each factory and annual targets set based on thegoal of achieving a 30% reduction in power consumption by 2030. The project team is continuing to use the new technology development platform as the basis for assessing energy-saving management
measures. Improvement proposals that deliver energy savings of over 3.5% can now be consistently generated every year. Current proposals from factories are expected to deliver cumulative energy
savings of 20% ~ 25% by 2030. AUO will continue to strive to realize our goal. In 2023, actual power saving (Note) from combining energy-saving techniques with direct and indirect electricity use at eachfactory meant that the annual target was reached.
Note: Power saving rate means energy savings from the 3030 Project based on the production capacity utilization rate of 2021.

Future Plans for the 3030 Project
AUO will continue to strengthen development and application of energy-saving methodologies by focusing on four key axes in 2024.

Axis 1Introduction of highefﬁciency machinery forindirect electricity use andoptimization of process
demand and consumption

Axis 2

Axis 3

Energy-saving machineryand equipment:
Introduction of heat recovery
and enhanced constanttemperature technologies
for energy-intensive ovens
and heaters

Axis 4

Energy-saving in fab spaces:
Use data modeling andanalysis to evaluate theoptimal speciﬁcations forclean room air conditioning
and make progressive
improvements of energy
consumption

Incorporate energy
consumption into productevaluations and workwith teams from the
R&D and supply chain to
introduce low-temperaturematerials and reduce
power consumption
during production andmanufacturing2023 Highlights

Waste Heat Recovery for Color Filter Ovens
There are many heating processes in the factory. Most of the heat isconverted from electricity making these processes very energy-intensive.
The yellow-light process for color ﬁlters for example use ovens that convert
electricity into heat. Hot air is generated and circulated to heat the processcoating on the panel surface so that it meets the required speciﬁcations.
In the past, the waste hot air was vented directly into the factory facilities
system and not recovered. AUO now recovers the waste heat f rom theexhaust through a set of heat exchangers. Heat exchange between the hot
exhaust and fresh air heats the fresh air from 25 degrees to 100 degrees
before it enters the oven. Reducing the heating time and power required
for the oven heaters greatly reduce electricity consumption. The measure
has now been rolled out to all factories. For the Taichung factory, thisreduced power consumption by approximately 30%.

BeforeEmissions
200°C

Fresh air
25°C

After
Waste heat
200°C

Exchanger

Fresh air
25°C
Oven
230°C

Oven
230°C

Intake air
160°C

Emissions
200°C

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report

88

Clean Room Fan Filter Unit (FFU) Energy Efﬁciency Graph
Clean rooms are designed to remove all airborne contaminants such as micro-particles, harmful gases and bacteria within a volume of space. The temperature, humidity, cleanliness, indoorpressure, rate and distribution of air ﬂow, and static electricity within that space must also be kept within a set range. Most of the energy consumption is from Fan Filter Units (FFU), the mostnumerous component in the air-conditioning system. A FFU is made up of a High-Efﬁciency Particulate Air (HEPA) ﬁlter, mini fans, and casing. In the past, energy savings were generallyachieved through localized reduction in RPM. Energy savings from such localized adjustments were however very limited. Our team used the air speed and coverage of clean room FFUs
to calculate the optimal wind speed. A clean room energy efﬁciency map was then drawn up with energy consumption shown using a trafﬁc light system. Manufacturing units could then
optimize their set up based on the level of each production process. The Longtan Site for example used this “Spatial Power Efﬁciency Indicator Methodology” in 2023 to reduce its daily power
consumption by 30% from 30,000 kWh to 20,000 kWh. The team also discovered a more efﬁcient approach during implementation. Converting FFU’s wind speed and coverage indicators into
air change rates meant that the wind volume generated by the FFU could be matched with the minimal wind speed required by the topography of the clean room. Making adjustments basedon the minimum required wind speed improved the overall energy efﬁciency of the Longtan Site by over 40%.

Material Topics

Number of submissions to the annual energy-saving competition

Energy-saving innovation technology
Taichung Site 2 - Self-Adaptive Variable-Frequency
Dry Pump

Proposal Competition
The AUO Green Production (GP) team has been working on energy efficiency, water efficiency, environmental indicators,
and reduction in raw materials since 2008. A competition for proposals also encourages the participation of teams fromeach site. The competition has received 210 proposals since 2019., The competition encourages each plant to submit
proposals for optimizations in three areas, namely innovative energy-efficiency technology, innovative energy-efficientmanagement, and innovative water-efficiency management. Employees from each site are invited to rate each other’s
proposals to promote the exchange of innovative thinking. Winning proposals are picked by the heads of Manufacturing units
and publicly recognized during the annual conference. AUO even injected the sustainability mindset into the rewards bypartnering with Sunnyfounder, the citizen power plant company, to present solar panel options to the winning team in each
aspect. The linkage to green energy made the prize more meaningful. A total of 16 sites took part in 2023. Each site picked 3
representatives for the three aspects mentioned above and submitted a total of 48 proposals to the annual competition.

Energy-saving innovation management
Houli Site - Dynamic AI Control of Sludge Dryer
Operating Temperature

Water saving
Longtan Site - Recycling and Reuse of Cleaning Waterfrom Color Filter Coating Process

Case Highlights from the Proposal Competition

Houli Site - Dynamic AI Control of Sludge Dryer Operating Temperature
Sludge dryer operation is based on AC compression of ref rigerant and generation of hightemperatures through heat exchange to dry out the sludge and reduce the water content. The
refrigerant is continuously circulated to reduce the amount of sludge that needs to be removed.
The key factors in the system’s operation are the water content of the sludge and level of power
consumption. The two factors are completely opposite to each other. To reduce the water content,
power consumption increased; to reduce the power consumption, the water content of the sludge
will increase. This translates into higher sludge treatment costs. An automatic AI controlled system
was therefore introduced by AUO to control the drying time based on water content and reduce
the power consumption. Wind pressure, temperature, time and water content data was gatheredby AUO over six months to observe their changes before an automated AI-control system wasintroduced. Veriﬁcation of the system found that daily power consumption was reduced by 45%
from 5,568 kWh to 3,045 kWh while maintained the sludge water content below a certain level.
This was equivalent to a reduction of 1.2 tons in carbon emissions. In addition to decreased power
consumption, other benef its included a reduction in the amount of sludge that needed to betreated and treatment costs.

Energy-saving opportunities
Host device(ﬁrst phase)

supplyair

return air
Dehydrated
sludge1

return air

2
Dryingchamber 1

Host device(secondphase)

return air

3
Drying chamber 2

supplyair

Utilize AI to establish a model(temperature difference,
moisture content, drying time)
to ﬁnd the optimal drying time,
automatically adjust the drying
time based on the temperature
difference of the drying chamber's
return air.

DriedsludgeY

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1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Inverter installation structure

Taichung Site 2 - Self-Adaptive Variable-Frequency Dry Pump
One of the most energy-intensive machines in the factory was the thin-ﬁlm machine from the Array process. AUO analyzed
the power consumption and found that the one of the more energy-intensive components was the dry vacuum pump. The
team installed a variable-frequency drive (VFD) for the dry vacuum pump with self-adaptive function. The pump’s operating
curve after the installation of the VFD was then analyzed and recorded. When the VFD is active, the self-adaptive function
automatically adjusts the VFD frequency based on the pump’s current. The machine’s operating status is automaticallydetected and the frequency adjusted accordingly. Automatic detection, operation, and frequency reduction effectively
improved energy efﬁciency. The improvement generated cumulative power savings of 74,000 kWh in 2023 since it was
introduced at Taichung Site 2.

Low-power
consumption
machineryHigh-power
consumption
machinery

220V

Electricalcontrol box+
Dry vacuum
pump

220V

Dry vacuum pumpequipped with inverter
and electrical control box

Longtan Site - Conversion to Centrifugal Blower for Wastewater
The Roots blower was originally used for wastewater anaerobic/aerobic bio-aeration but it suffered from high power consumption, low efﬁciency, as well as noise and heat. The Roots blower
was replaced with the centrifugal blower to improve performance. AI technology was also introduced by AUO on top of the switch to a centrifugal blower to make continuous improvements
to system performance. This included the addition of a signal digitization and program control function, installation of monitoring module for real-time feedback, smart regulation with AI, andoptimization of wind volume. Energy efﬁciency was improved by approximately 45% overall. If there are ﬂuctuations in production capacity the system can also assist the team with decisions on
optimizing energy efﬁciency.

Energy Saving Solutions at Overseas Sites

Xiamen Site - Air Compressor Total Control System
Air compressor units are grouped together and conf igured into steppedpressure belts. Groups are turned on or off manually so cannot be adjusted inreal-time based on end-user air demand. As a result, air compressors deliver
too much pressure for long periods of time leading to waste. The optimization
solution introduced by the factory used a centralized control system toautomate the control of air compressors. The load of each air compressor
is calculated in advance then compared against the calculated gas usage
and actual gas usage. The pneumatic network is then precisely regulated tobalance the load for each unit. The introduction of the total control system forthe air compressor station yielded annual energy savings of up to 246,000 kWh.

Suzhou Site - Energy Saving
Cooling Tower Fan Blades

Suzhou Site Air Compressor Waste Heat Recovery

The original cooling tower fan blades
were made f rom aluminum alloy thatweighed more and were more energy
intensive. The site introduced new fansconstructed f rom laminated f iber gas
and thermosetting epoxy resin. The bladesurfaces were also treated with a special
coating. The result was annual energy
savings of more than 97,000 kWh.

The air conditioning uses heated steam in winterto provide heat. Using a heat exchange, residual
heat generated by the air compressor room wasused by AUO to heat the hot water needed by
the air conditioning system in winter to save
approximately 1,839 tons of steam each year.

89

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2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report90

3.2.3 Use of Renewable Energy
Taiwan was listed as one of the most challenging markets by RE100 due to its constraints on land resources and policy development. Other unfavorable factors included rocketing inﬂation, high prices
and acute demand. At AUO, we pride ourselves on leaving by example in climate action and our willingness to embrace new challenges. As a member of the RE100 global renewable energy advocacy
organization, cross-unit cooperation was employed to gradually increase the ratio of renewable energy usage year by year. We also engage with the relevant ministries to offer recommendations on
industry development and policy.

Green Electricity Procurement TeamGreen electricity procurement is different from ordinary material procurements due to the special nature of green electricity products. Such products can also be used for different purposes including
compliance, carbon reduction in the supply chain, advocacy action, and market demand. If there is no centralized procurement unit, differences in the requirements and responsibilities of each unit
may lead to corporate inﬁghting that hampers or impacts on green electricity procurement. Green electricity procurement at AUO embodies the advantages of the One Team, One AUO organizational
culture. The green electricity procurement team is made up of all the relevant units to provide effective division of labor and communication at different stages of the process.

Green Electricity Implementation Unit & Phase Responsibility
RE Target Planning &Implementation

Sustainability● Set Target● Monitor Regulatory/
Trend Developments● InternalCommunication● Board of Directors
ReportGreen Electricity Purchase and Sales Contract Phase

Green Electricity
Procurement● Green Electricity
Development
and Procurement
Contract
Negotiation

Finance● Prepare Funds

Sustainability● Contract
Timetable andTotal Value

Legal Affairs

Factory Facilities● Review
Contract Terms● Contact for Contract
Execution

Green Electricity Operations & Engagement
Sustainability

Finance

Factory Facilities

CPPA Contract
Management

Financial Payment

Check Green Electricity
Wheeling Supply

BU

Environmental Safety

Customer Green
Electricity Requirement
Engagement

GHG Inventory Scope 2
Carbon Emissions Offset

Green Electricity
Certiﬁcate
Management
Environmental
BeneﬁtOwnership andAllocation

Green Electricity
Distribution Principles

Installed Capacity & Generating Capacity of Renewable Energy
As part of the process for realizing RE100 targets, AUO followed RE100’s recommendations by prioritizing self-generationand self-use for meeting organizational needs, followed by the singing of Corporate Renewable Power Purchase
Agreements (CPPA). Purchase of I-REC is only used if land constraints, policy environment or other conditions make selfgeneration/self-consumption or electricity trading impossible. Current market conditions under the existing regulatory
regime means that CPPA is mostly used by our Taiwanese sites. The contracts were carefully assessed and took multiple
factors into account including the contract installed capacity, electricity supply time-line, electricity rates, and related
contract fulfillment conditions. As of 2023, AUO has signed contracts for 18.39 MW of solar power that are now being
progressively connected to the grid and used wheeling in accordance with the terms of their contract. In 2023, AUO used
13,710 MWh of green electricity. At the same time, the China sites expanded their development of rooftop solar power
for self-generation and self-consumption to an installed capacity of 52.71 MW. A total of 56,010 MWh in green electricity
was self-generated and self-consumed in 2023. AUO also went on to purchase 30000 kWh in green electricity certiﬁcates(GECs) veriﬁed by China’s National Renewable Energy Information Center. Generally speaking, AUO’s total green electricity
consumption amount to nearly 100,000 MWh, equivalent to a renewable energy ratio of 2.2%.

Self generation electricity
consumption: 128,000kWh
CPPA: 13.71 million kWh

China sites

Self generation electricity
consumption: 56.01 million kWh
Green electricity certiﬁcates: 30
million kWh

Taiwan sites

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability ReportSuzhou Site

Kunshan Site

Xiamen Site

TaiwanAUO Suzhou Site launched its rooftop solar
power project in September 2022 . The
system has an installed capacity of 8.97 MW
and a planned annual generating capacity of
9,800 MWh. Grid connection and generation
was completed in May 2023. Total generation
output by the end of December 2023 was
6,730 MWh.

The construction of a rooftop solar power
plant was already planned when the AUO
Kunshan Site was first constructed. In 2023,
rooftop solar at AUO Kunshan Site added
18,000 MWh in annual output, bringing thetotal generating capacity of the site to 21.99
MWh, or about 5% of the site’s entire annual
power consumption.

AUO Xiamen Site installed rooftop solar poweron the vacant rooftop resources of Site 1 andSite 2. The distributed solar power project
has a total installed capacity of 21.57 MW
and is currently the largest distributed solar
power plant in the Xiamen region by installedcapacity. The rooftop solar power is used for
self-generation/self-consumption with theexcess fed back into the grid. Annual power
output is 27.28 MWh and accounts for 21.25%of the site’s total annual power consumption.

The green energy market in Taiwan is still inthe development stage, with overall supply
unable to meet demand. As part of its
short-term goals, AUO's RE target aims tomeet its needs through procurement andresupply from its own energy projects andactively expand cooperation opportunities
in the green energy liberalized market,
moving towards the development of green
energy sales business. in the medium term,
AUO plans to achieve its RE30 goal for 2030
by procuring offshore wind power.

91

Green Electricity Management Platform
AUO began giving thought to the effective management of green electricity contracts while purchasing CPPA to satisfy RE targets. The reason for this is that around 40 CPPAs were eventually signed by
AUO when we started implementing the use of green electricity. A digital management platform was therefore necessary to manage the large number of contracts. The Green Electricity Management
Platform was there developed by AUO. Key features included contract management, green electricity wheeling, and certiﬁcate management.

Contract Management

Green Electricity Wheeling and Certiﬁcate Management

CPPA contracts are very complex as they must satisfy the contractual obligations andconditions of different green electricity developers. The Green Electricity Management
Platform assists with the key contract management matters such as contract scheduleand expiry reminders, financial payment terms, and agreement on what happens
when there is an unexpected breach of contract.

The Green Electricity Management Platform can dynamically track the operating status of power generation
projects and supply green electricity to the consumer site through wheeling. It cannot only track projectgeneration performance but also handle ﬁnancial accounts. The platform will also help AUO avoid excess
electricity from over-issue once it approaches RE100. The platform can also perform automated settlement of
external green electricity. It also includes optimized management for automatic green electricity invoicing.

Green Electricity
Management Platform
System Process

CPPA Management
Timetable deadlines
Installed capacity
Contract fulﬁllment
conditions
Payment conditions

Green Electricity Policy Engagement
The green electricity market has seen particularly strong growth inrecent years since restrictions on private operators were lifted by the
Taiwanese electricity market. Nevertheless, industry leaders must stillcommunicate and coordinate with the competent authorities during
the privatization process to come up with a ﬂexible, agile, and efﬁcient
policy regime. AUO has more than a decade of experience in theenergy industry so we actively engaged with the competent authority
by making proposals and recommendations on collective purchasesof green electricity, double insurance system for green electricity,and certiﬁcate ownership. Our contributions helped the government
formulate a forward-looking roadmap for the low-carbon upgrade ofthe entire industry.

Green Electricity
Data Management
Power generation data
Power generation
estimate
RE100 targets

Cost Management
Cost invoicing
Automated costamortization

Certiﬁcate Management
T-REC certiﬁcate
management
Record Customer
Requirements

Green Electricity Double Insurance System

Certiﬁcate OwnershipEnterprises with a higher demand for green electricity may findthe RE100 requirements difficult to meet on solar power systems
only. They must therefore turn to offshore wind power projects
that are even larger in scale. The banking syndicates of developers
are however relatively conservative and rigorous in their risk
assessments for massive offshore wind power investment projects.
Most Taiwanese enterprises that have a urgent need for green
electricity tend to lack international credit ratings that makesecuring bank loans difﬁcult so they need policy assistance from thegovernment. AUO drew on our extensive experience in the energy
industry to offer related recommendations. The identification of acommon niche between offshore window power developers andenterprises that need green electricity helped to create a win-win
outcome for all parties.

Enterprises that have committed to carbon reductions
or net zero all take a strong interest in the ownership ofgreen electricity certiﬁcates. and anticipate applying thecertiﬁcates to all kinds of low-carbon declarations. AUO
actively reached out to the government’s certif icate
center to raise the relevant pain points such as bundled
and unbundled power purchase agreements, andcontrol mechanism for revoked certif icates, as well
as recommendations for applications such as system
information and data exchange formats, and declarationof offset certiﬁcates. AUO hopes that these contributions
will build the foundations for the credibility and ﬂexible
use of future certiﬁcates.

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1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

92

3.3 Water Resource Management
AUO has always embraced a practical approach with continuous improvement in water management. Targets set by the GP team are combined with digital tools to upgrade performance per unit ofwater. A comprehensive water resource risk management mechanism is also used to ensure water security. In keeping with the spirit of treasuring natural resources, AUO strives our reliance on natural
water supplies and increase our process water recycling rate so that we can make the best use of water resources.

3.3.1 Target & Performance
Material Topics

Total tap water consumption
Total process water recycling rate

AUO Water
2025

To support SDG 6 “Clean Water and Sanitation”, AUO made “Water Conservation and Creation” one of
the goals of CSR EPS 2025. A water conservation and creation target of “Work with the value chain tocombat the threat of water shortages and conserve up to 100,000 CMD in tap water” was set for 2018
~ 2025. In 2023, AUO exceeded the target with cumulative water savings of 230,000 CMD.

Water Consumption Conditions in 2023
In 2023, total water withdrawal at AUO amounted to 56,897 CMD. AUO strives to reduce water consumption and engage in reuse. Potential improvements are inventoried and new measures introduced
every year. With AUO 2025 as our guide, AUO is reducing the potential operational impacts of water shortages through the three strategies of “Water Reduction, Water Creation, Water Conservation in
the Value Chain.”

Three key Indicators

Water Reduction
AUO drew on our many years of experience in smart manufacturing to integrate Artiﬁcial Intelligence of Things (AIoT)
technology into the water withdrawal systems of our production processes and factory facilities. The automation andoptimization of equipment serves to realize continued decreases in reliance on natural water supplies and improve therecycling rate of process water.

Tap water withdrawal

Production water
recycling rate

Calculation of water
use intensity

Increased by 10.2%

95.02%

Decreased by 4.56%

Unit is Cubic Meters
per Day (CMD)

Calculated as Recycled
Process Water/
Consumption at Point ofUse (POU)

Calculated as
Production Water
Use/Chip Surface
Area (m2)

Water Creation
A contract was signed by AUO and Taichung City’s Shuinan Water Recycling Center in 2021 to begin supplying 9,400
CMD of water in 2024. The agreement will not only mitigate the pressure on water supply at the Taichung Site but
also offer signiﬁcant offsets once the Water Conservation Charge is imposed in the future. Reclaimed water from thedevelopment zone’s wastewater treatment plant has been introduced at the AUO Kunshan site on a trial basis. Average
consumption of reclaimed water reached 7,768 CMD in 2023 and now serves as a reliable source of process water forthe entire site.

Supplier Water Saving
To increase value chain awareness on water conservation and their ability to adapt to risk, AUO began recruiting suppliers to join us in promoting water conservation measures in 2016. AUO is more than
happy to share our resources with suppliers that respond to the water conservative initiative. These included sharing practical experience on water resource management through supplier inclusive
growth courses, organizing internal experts to provide on-site counseling at supplier sites, assisting with testing for blind posts in water use, and offering of improvement advice. Since 2018, 14,031 CMD in
tap water savings have been achieved so far.

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3 Environmental 4 Inclusive
GrowthSustainability

2 Sustainable
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5 AgileInnovation

Subsidiary

Process water recovery rate
100
99
98
97
96
95

93.81%

94
93

95%

94.47%

95.02%

92.29%

2023 AUO Sustainability Report

Process water consumption per unit
(tons/m2)

3,500

0.7

3,000

0.6

2,500

0.5

2,000

0.35

0.32

0.35
0.29

0.33

500

2020

2021

2022

2023

0

0.4
0.3

1,000

91
2019

Appendix

Total production process water
consumption (10,000 tons)

1,500

92
90

Fact
Sheet

0.2
2,288

2,169

1,992

1,653

1,841

2019

2020

2021

2022

2023

0.1
0

3.3.2 Management Framework
A hydrological center platform was set up by AUO in accordance with the ISO 46001 efficiency management systems standard to implement the setting of water conservation targets,classiﬁcation of material water usage, water use review, routine management, performance management, water conservation action plans and other management measures.
Water Review

Routine Management

Inventory water consumption circuits and units including
production process water consumption, factory facilities
water consumption, factory facilities water production, anddomestic water consumption.

Use digital tools and systems to monitor machine operations and reportanomalies in real time, as well as use PDCA for cycle management

Performance and Baseline Management

Material Water Consumption Classiﬁcation
Identify water-intensive units to serve as target for
critical improvement

Setting of Water Conservation Targets
Set Management Targets based on the Three Strategies
of “Water Reduction, Water Creation, and Water
Conservation in the Value Chain”

Management
Systemization

Establish material water consumption circuits and Factory facilities waterproduct unit baselines to serve as a baseline for assessing performance andmaking improvements

Water Conservation Action Plans
Inter-site competition and incentives encouraged engineers to propose
optimizations and come up with innovative water-saving techniques

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Material Topics

2 Sustainable
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3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

94

Ratio of water usage in Taiwan controlled through POU

Expansion of POU Control at Taiwan Sites
The “Point-of-Use Water Use Safety Net (POU)” was developed by AUO in 2020 with the pilot system installed at Taichung Site 3. POU can automatically trawl for external water supply data and monitor
all water use nodes in the factory including the level of water tanks and ground water to ensure the stability of the water supply. When combined with the reporting of water consumption data frommachines, the GP team can establish the actual effectiveness of individual water-saving improvements and make further improvements to equipment variance. 100% of water withdrawals at Taiwan sites
are now monitored via POU. Total water savings in 2023 amounted to 1,719,515 tons.

Material Topics

Coverage of ISO 146001 water efﬁciency management system certiﬁcation in Taiwan

Implementation and Roll-out of ISO 46001
AUO has always paid close attention to international standards. We actively introduce new management systems and establish management systems that are practical and rigorous. The ISO 460001
water efﬁciency management system was introduced for the ﬁrst time at Taichung Site 3 by AUO in 2019 and we became the ﬁrst enterprise in Taiwan to obtain this certiﬁcation. In keeping with thespirit of ISO 46001, AUO continued to enhance internal awareness on the importance of water management and application tools. Education and training was carried out for cadre personnel at each site
along with the development and optimization of the trans-site hydrological center smart management platform. Once ISO 40061 certiﬁcation was obtained by the ﬁrst site, AUO immediately embarked
on a stepped roll-out that saw Taichung Site 2 and Houli Site obtain their certiﬁcations in 2022. Longke Site, Longtan Site and Taichung Site 1 were also successfully certiﬁed in 2023. A total of 9 sites in
Taiwan will ultimately be included in the scope of the management system by 2024. The PDCA management cycle employed by AUO includes establishment of water performance targets, action plans,monitoring and analysis, periodic review and review mechanism. These are complemented by reduction, substitution, and reuse strategies as well as AI smart applications to achieve optimal water
resource management.

Veriﬁcation Rate
(Taiwan sites)

2021

2022

2023

2024

10%

30%

60%

90% (Note)

Review water consumption
performance and set targets
according to the ISO46001 guidelines

Implement colleague education andtraining and optimize the operationof the Water Management Center

Expand colleague education and training
and reinforce water consumption
monitoring and management solutions

Regularly implement PDCA
management in all factories in Taiwan

A total of 10 sites in Taiwan

Actions

Note: AUO adopts a ﬂexible operational strategy, closing down the Tainan site, and reallocating the production capacity to other production lines. Therefore, the Tainan site has
not implemented the ISO 46001 certiﬁcation plan.

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1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

95

Risk Adaption
Water resources are an indispensable element in the panel manufacturing process. In 2019, AUO followed the TCFD framework and included scenarios such as water outages and restrictions in key
climate risks. Furthermore, the Company also planned and reviewed multiple long-term control measures. Faced with the severe drought situation in 2021, AUO optimized the operation of the smart
platform of the water management center, supplemented by a water warning light classiﬁcation system, which integrates the water consumption conditions of the factories with the external waterconditions to realize monitoring, forecasting, and real-time response management, thereby ensuring the most stable and efﬁcient water supply.

Minimizewater
condition
impactAssessment of Areas with Water Stress
Business
Continuity Plan

Water condition warning
light classiﬁcation system

Water management center smart platform

Activate the water conditions department to formulatecontingency plans for natural disasters, water restrictions,and other events

Monitor factory water conditions through the
red/green light system, and it is combined withthe climate forecast model to be prepared fornatural disasters

Based on the RCP8.5 scenario announced by the United Nations Intergovernmental
Panel on Climate Change (IPCC),and external risk model from 1990 to 2050 formulate
by the climate risk organization XDI (The Cross Dependency), which examineddamages caused by river and surface flooding, coastal floods, droughts, extreme
winds, and other phenomena of more than 2,600 regions around the world.
AUO considered the water resource resilience of each factory, including internalconsiderations such as reliance on water resources, industrial pool space, and factory
output value, to evaluate the Company’s water risks. In particular, special attention
should be paid to the three factories in Taichung and Houli in Taiwan, and Kunshan.

Integrate the factory's water monitoring
system and external water condition
information (such as weather forecasts,
reservoir water levels, waterwheel wells, etc.)
to improve water efﬁciency and ﬂexibility

3.3.3 Improvement Projects
AI Control and Optimization of Pure Water System SB-P
The pure water system can be divided into several modules including pre-processing, generating
unit, supply unit, and pure water recovery. The SB-P (Separate Bed-Polisher) generating unit uses
de-ionization resin to remove residual ions in the water. Once the resin becomes saturated it must
be regenerated. Conservative settings were used for the regeneration cycle and dosage with mostof the parameters being ﬁxed value. Extensive testing and adjustment was carried out by AUO toobtain data on the most economical regeneration cycle. AI modeling was used to predict the rangeof the optimal regeneration cycle duration and automatically adjust the SB-P system’s online hours
based on the relevant factors and constraints. Since the system’s introduction, water withdrawal was
reduced by 3,735 tons in 2023 and chemical consumption was also reduced as well.

Longtan Site - Recycling and Reuse of Cleaning
Water from Color Filter Coating Process
The Color Filter ITO (Indium Tin Oxide) coating process previously
discharged single-use water f rom the pre/post-washers directly
into the factory facilities system for wastewater treatment. AUO
now recycles the single-use wastewater produced by the pre/postwashers for reuse to reduce water consumption by 9,636 tons a year.

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1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Taichung Site - Recycling of Cleaning Water from Aluminum Etching Machine (WMA)
A conductivity meter was added to the aluminum etching liquid discharge system. Smart software was then written to make decisions based on readings from the conductivity meter.
When the conductivity value is lower than the set threshold, low-concentration cleaning water from that conduit can be recycled for reuse. The measure saves 503 tons of water each year.

Tainan Site - Introduction of Straight Water Electronic
Ratio Value for Automatic Flow Regulation

Longke Site - Change of Water Replenishment Mechanism

The cleaning and development stages of the production process use straightwater supplied by factory facilities but unstable water pressure and ﬂow canlead to major ﬂuctuations in ﬂow rate. Electronic ratio vale was introducedby AUO to automatically adjust the water supply and stabilize the water ﬂow.
Water consumption was reduced by 1,787 tons a year after this initiative wasintroduced.

Single-use water from the production process is discharged into the water tank thentransferred through horizontal piping to the next tank for second-use. AUO discoveredthat the spillover mechanism for ensuring tank safety as well as the design of horizontaltransfer pipes prevented the full reuse of water resources. Horizontal transfer was
therefore changed to vertical transfer. The water replenishment mechanism was also
optimized so that it is now controlled by the liquid level in the tank. Introduction of thisimprovement has reduced water consumption by 41,058 tons a year.

BeforeOperation: ON
Idle : OFF
Directwaterelectricvalve

ON

Directwater
showerM
Tank

Pneumatic valve

Cycle 1

M

Cycle 2M

BJ

Tainan Site Increase of Water Production Rate from RBRO
AUO replaced the RBRO in-line membrane with RO membrane channels
with better ﬂow-through rate. Water production was increased by 2 CMH
while maintaining a reasonable water production rate of 60% ~ 65%, theequivalent of increasing annual water recovery by 2,920 tons. Operating
current was also reduced to improve energy efﬁciency.

After

Drain

Waste
Drain

U-TURN
TANK

CIRTA
NK

AA
TANK

DIW
SupplyIN

Suzhou Site - Water Reclamation Expansion Project
Suzhou Site’s original reclaimed water treatment capacity was 35m³/h. Excess water
reclaimed from production sites were discharged as wastewater. An improvement project
was undertaken by the site to improve water reuse. The improvement consisted of adding
one water recycling pump, two sets of tray-type ﬁlters, and 6 sets of Ultra Filtration (UF) units.
Reclaimed water treatment capacity was increased to 47m3/h. Recycling water usage wasgreatly increased and is expected to reduce annual water consumption by 70,000 tons.

96

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1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

97

3.4 Circular & Clean Production
3.4.1 Circular Economy Performance
Strategy & Organizational Operations
In response to SDG12, AUO has set a goal to achieve a circular economy growth rate of 135% by 2025, based on 2017. AUO formed the Circular Economy Working Group to create a cross-functional
operation model and set 3 strategic goals including products, manufacturing, and supply chains. In addition, AUO established comprehensive monitoring indicators such as source reduction, productcircularity certiﬁcation, and increased material recycling rate, as well as reduced process waste. AUO has also extended its circular action to its partners and implemented projects such as packaging
material recycling, R&D of recycled material technology, and process material recycling to realize the Company’s belief in achieving the common good with the environment, as well as generate more
green business opportunities by allying with value chains.
Material Topics

Financial bene¬ﬁts growth rate, Ratio of recycled materials certiﬁcation for the circular economy supply chain, continue to expand the circular economy supply chain

2023 Achievements
CSR EPS 2025 Goal – Circular Production
Under the goal of “achieving a 135% circular economy growth rate by 2025, basedon 2017”, the financial performance growth target for 2023 was set at 68%. The
actual achievement was 234%, signiﬁcantly exceeding the target.

The market has not fully recovered in 2023, and the slowing down of capacity utilization has
resulted in slightly lower financial benefits from the recycling usage of manufacturing raw
materials than the preset target. However, with AUO’s active promotion, green products using
recycled materials are widely used in information display products, increasing the penetration
rate of green products and contributing signiﬁcantly to revenue. Overall, AUO created a total
ﬁnancial beneﬁt of NTD 14.39 billion in 2023 through the sale of designs of recycling products,
the recycling of raw materials in the process, waste reduction technology, and green logistics.

Green ProductGreen Manufacturing

Green Supply Chain

Continue to develop recycled plastic materials, apply them to 150 products in
2023, generating an annual revenue of NTD 9.12 billion.

Promote the recovery of developer and stripper,
the reduction of sludge waste, and recycled water.
In 2023, the conversion amount of raw material
recycling was NTD 4.24 billion.

Continue the recycling of packaging materials andpromote the recycling of packaging materials by
customers and suppliers. The cumulative savings fromrepeated purchases of new packaging materials forthe entire year was NTD 1.04 billion.

Continue to reﬁne the technology for recycled and reclaimed materials
while also introducing third-party certiﬁcation.

Construction and Commissioning of Sludge
Reduction and Treatment Facilities at TaiwaneseSites (Taichung Site, Houli Site, Longtan Site, andLongke Site)

To establish a circular economy supply chain, 41
out of 42 related suppliers have now obtained
third-party recycled materials certiﬁcation.

Product materials such as glass, metal, and plastics now all containrecycled materials. Recycled materials are extensively used in projects
when it has low impact on cost to effectively increase penetration rate.
Products where this initiative has been introduced include desktop
displays, notebook products, automotive displays, and public displays.
Due to the higher cost of optical-grade plastics, certiﬁcation is mainly
conducted in conjunction with product ranges speciﬁed by the customer.

The new liquid crystal glass treatment center is
now in operation.

Recycling rate of supplier packaging reached95.7%

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Circular Products - Increase in Penetration & Third-party Certiﬁcation
AUO is working actively to expand the use of recycled materials in products without signiﬁcant increases in cost. In 2023, we applied
recycled materials to desktop displays. notebook displays, public displays and other products. More than 150 product models have now
introduced a certain ratio of recycled materials including plastics, metals, and glass. Materials related to automotive displays have also
completed development and certiﬁcation. We plan on introducing them in response to customer needs.

Appendix2023 AUO Sustainability Report98

Number of product modules
incorporating recycled materials

In term of technology, AUO is increasing the ratio of recycled materials in modular products to improve product circulation. Current
circulation results can also be used for customer and stakeholder. Methods include selecting a suitable third-party certiﬁcation bodyto cooperate with on renewable certiﬁcation for products; a certiﬁcation mechanism will also be introduced that requires third-party
certiﬁcation for the recycled materials. This will strengthen the objectively and quality of reports. For example, AUO selected two projects
under development in 2024. First of these was a 27” desktop monitor that introduced the PCR (Note 1) plastic frame with 30% PCR
content, aluminum backplate with 50% recycled content, and glass substrate with 20% recycled content; The 16” display for notebooks
included plastic frame with 30% PCR content, aluminum backplate with 40% recycled content, and glass substrate with 20% recycledcontent. UL 2809 (Note 2). certiﬁcation was conducted for the whole range by a third-party certiﬁer. The 27” desktop display and 16”
notebook display each contained 22% and 13.6% recycled modules and materials. They were the ﬁrst notebook and desktop PC modsin the world to receive recycled content awards. The awards represented AUO’s commitment and resolution on sustainable productdevelopment and continued product development.

150+

30+

3
1

2020

2021

2022

2023

Note 1: Post-Consumer Recycled (PCR)
Note 2: UL 2809 recycled content certiﬁcation is veriﬁed using the weight of reclaimed materials.

Milestone of Recycled Material Products
2020
Technology/
product R&D

Engineering-grade recycled plastic

2023 Taiwan Circular Economy Awards Outstanding Product Award

2021
Technology/
product R&D

2022
Technology/
product R&D

Engineering-grade recycled plastic
Recycled glass
Recycled steel

Engineering-grade
recycled plastic

Recycled
aluminum

Recycled glass

Optical-grade
recycled plastic

Recycled steel

2023
Total solution for
the utilization ofrecycled materials

Establishing certiﬁcation mechanisms
Strengthening the circular materials
supply chain

In 2023, AUO introduced recycled plastic, reclaimed metal, and recycled glass into theirproduction line, notably in their 16-inch notebook and 27-inch monitor demonstration
products. The actual results achieved were that the notebook contained 13.6% recycledmaterials and the monitor contained 22% recycled materials. This achievement yieldedthem the prestigious Taiwan Circular Economy Award for Outstanding Product.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

99

Green Manufacturing - Reduction, Recycling & Resource Development
AUO has changed the traditional linear production model and expanded the circular application in the process; continue innovate, promote implementation and expansion process technology in reduceand reuse chemicals, and waste recycling.

Year/
Achievement

Cupric etchant

2016

2018

Introduction of copper
puriﬁcation by electrolysis
to achieve zero waste
solution production andturning cupric acid into
high-value copper rods

Doubling the cupricacid processing volume(30CMD to 60CMD)

2019

Precision control
of chemicals

Introduced stripper
consumption
precision control
solutions, decreasing
the consumption of
new solutions by 6%

Stripper
Aluminumetchant

Reutilization ofchemicals
Alignment
ﬂuid

Reutilization ofchemicals
Liquid crystal

2020

Introduced alignment
ﬂuid recycling to theadvanced process,achieving a reutilization
rate of 10% to 13%
Introduced liquid
crystal recycling to the
2 processes, achieving a
reutilization rate of
0.8-2.4%

2021

2022

2023

A total of 216 tons ofcopper rods was recycled

A total of 273 tons ofcopper rods was recycled

A total of 324 tons ofcopper rods was recycled

Introduced aluminum
etchant consumption
precision control
solutions, decreasing
the consumption of
new solutions by 5%,achieving the lowest
volume of disposedsolutions in history

Introduced aluminum
etchant consumption
precision control solution
in more fabs, reducing
the consumption of new
solutions by an averageof 4%, and decreasing
the transportation ofused solutions by 5%

Introduced aluminum
etchant consumption
precision control solution
in more fabs, reducing
the consumption of
new solutions by 3%(compare to 2022)

Achieved alignment ﬂuid
reuse rate of 13.4%

Achieved alignment ﬂuid
reuse rate of 8.3%

Achieved a liquid
crystal reuse rate of 1.6%
equivalent to 985 kg ofreused liquid crystal

Achieved a liquid
crystal reuse rate of 1.7%
equivalent to 1,238 kg ofreused liquid crystal

Introduced alignment
ﬂuid recycling to theadvanced process,achieving a reutilization
rate of 7.7%
Introduced liquid
crystal recycling to
the advanced process,achieving a reutilization
rate of 0.8%

Achieved a liquid
crystal reuse rate of 1%,
equivalent to 650 kg ofreused liquid crystal

Sludge Reduction Milestones
Wastewater from production processes generate large amounts of sludge after treatment. The sludge goes through concentration, mixing, and drying processes to be turned into sludge cakes before
being removed by waste contractors for disposal. The process is not environmentally friendly and has high costs. AUO began introducing the organic sludge lysis reduction system in 2019. Conditioning
chemicals and powerful oxidizers are added before high-speed oscillation and mixing to break down cells followed by separation of solids and liquids, dehydration, and drying to maximize sludge volume
reduction. The technology has now been rolled to four sites - Taichung Site 1, Site 2, and Site 3 as well as Houli Site. Trial operation commenced at the Longke Site in 2023. Due to factors such as site sizeand operating performance, ultrasonic disintegration sludge reduction technology is being introduced at the Longtan Site instead. Sludge reduction technologies have now been applied at all main AUO
production locations. The technologies will not only our environmental impact but also deliver cost savings on waste disposal.

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1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

100

Ultrasonic Disintegration
Sludge Lysis System
Longke Site

Longke Site
Reduced sludge production by 435.7
tons between 2021 ~ 2023

Trial operationcommenced in 2023

Longke Site

Longke Site

Sludge Lysis System
Taichung Site 1, Taichung Site 2, and Houli Site
Reduced sludge production by 6,069 tons between 2022 ~ 2023

Sludge Lysis
SystemTaichung Site 3

Taichung Site 2

Taichung Site 1

Houli Site

First introduced in 2020 and has
reduced sludge production by
15,003 tons as of 2023

Improvement in Sludge Reduction Process
Membrane Bio Reactor (MBR) and Reverse Osmosis (RO) were combined by AUO and developed
into an effective wastewater treatment technology.[ MBR pores have a filtering function andtransmembraneous pressure (TMP) is used to f ilter the mixed liquid after activated sludge
treatment (to separate microorganisms from water in the bio-reactor). By increasing the sludge
concentration in this manner, microorganisms’ ability to breakdown bio-ref ractory organics
can be boosted to further reduce the amount of waste sludge produced. Water quality after
solid-liquid separation is also good enough to meet the standard for recycling. In October 2023,
the Houli site added MBR and RO water recovery and treatment to the highly-concentrated
wastewater treatment process to improve the water recovery rate and reduce the amount ofsludge. As a result, the need for sludge removal was reduced by approximately 16%.

OWWR
Raw watercollection

Bioanoxictank

Bionutrienttank

TOC：150~250ppm

MBR

RO
recyclingrate 85%

OWWR-ROR waste water
TOC：60~100ppm

OWWT
Raw watercollection
TOC：350~500ppm

Bioanoxictank

Bionutrient
tank

MBR

Industrial
water
tank

RO
recyclingrate 75%
Discharge

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1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report101

3.4.2 Wastewater Management
Smart AI control was introduced by AUO to enhance the performance of the wastewater treatment system, collect and analyze water resource data, improve water recycling performance within thefactory as well as reduce the amount of process wastewater generated and reduce the impact of AUO operations on the environment and water bodies. AUO also held itself to higher-than-statutory
standards for the separation and treatment of wastewater based on process attributes. A self-monitoring system ensures all treatment processes comply with management targets. At the same time,
third-party inspections are periodically conducted by AUO to ensure that the goals of low pollution and zero ﬁnes are met.

Improvement Projects

Kunshan Site - Optimization of Fluorine Concentration Control for Discharge Water
Hydroﬂuoric acid used as the etching liquid during the production process generates ﬂuorinated wastewater. The wastewater is separated by type and collected for treatment at the source by
AUO. In 2021, AUO designated ﬂuorine ion concentration in discharge water as a key control indicator and required a ﬂuorine concentration of less than 10 ppm (mg/L) for discharge water. A
ﬂuorinated wastewater deep treatment system was added by AUO effectively keep the concentration of ﬂuorine ions in the site’s discharge water between 6 ~ 8 ppm (mg/L). Stricter regulatory
standards led to the Kunshan Site conducting further data collection and analysis on the wastewater treatment system to identify the key operating factors that affect ﬂuorine ion concentrationin discharge water. A deﬂuorination unit was added to improve treatment performance for ﬂuorinated wastewater. Fluorine ion concentration in discharge water can now be reduced to less than
3 ppm (mg/L). This is better than required by law and reduces the potential impact on the environment and water bodies from ﬂuorine ions by approximately 6.95 tons a year.

Houli Site - Substitution of
Eco-Friendly Chemicals
Chemical management at AUO is enforced throughthe chemical management system. Chemical
control list are regularly checked to keep track ofrisk management on chemical use in production
processes. In wastewater management, AUO
implemented improvements at the source toreduce the environmental impact of hazardous
chemicals. We are planning to voluntarily replacesuch chemicals with eco-friendly alternatives. The
NMF(Note) R-type stripper used in the production
process is a reproductive toxic agent so AUO
prioritized the assessment of alternative chemical
products. The non-reproductive toxic DEF stripper(Note) was introduced in 2023 and underwent
performance veriﬁcation in the production process.
DEF was found to be a suitable alternative to the
NMF stripper due to better safety and lower toxicity.
Note: NMF: N-Methylformamide;
DEF: Diethylformamide.

Houli Site - Optimization of Puriﬁed Water Resin Water Production Process
Separate Bed-Polisher (SB-P) was installed in the puriﬁed water system by AUO. The system uses ion-exchange resin to remove positive
and negative ions from the water to supply the quality of puriﬁed water required by the production process. The SB-P system must
be chemically dosed on a regularbasis to regenerate the ion-exchange
resin and maintain the stability of thepurified water quality. The regeneration
Process water
Water
Primary
Secondaryprocess not only consumes chemicals
Pretreatment
sourcetreatment
treatment(pure water)
and tap water but also generates
resin regeneration wastewater. An AI
control module was introduced by
Tap water
Filtration
2B3T
UF
AUO for the SB-P system in 2023 andRecycled
ActiveRO
critical parameters defined for effective
water
charcoalmonitoring of the puriﬁed water output
SB-P
quality and optimization of the resin
regeneration process. Wastewater andchemical reduction were both achieved,with annual regeneration wastewater
Introduction of AI control module
for SB-P systemproduction reduced by 3,755 tons
and chemical consumption
reduced as well.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report102

3.4.3 Air Pollution Management
Prevention, control, and management measures are adopted by AUO for air pollution. For prevention and control, the best practical technology is used for emissions treatment based on the compositionand nature of process emissions. Internal and external air pollution monitoring are also periodically conducted to ensure the consistent operation of air pollution prevention equipment and compliancewith regulatory requirements. In terms of management, Volatile Organic Compounds (VOCs) management targets have been set by AUO. The VOCs Continuous Emissions Monitoring System (CEMS) is
used to enforce air pollution reduction through real-time monitoring of control equipment and rapid conﬁrmation of target pollutant emissions.
Achieved

VOCs management goals

Year

2023

Based on the total emissions in 2020, the emissions
will be reduced by 1% per year
Unit: tons

VOCs
emission<143.55

Houli Site Reﬁnement of Air Pollutant Removal
Efﬁciency and Heat Recovery Performance
VOCs generated during the production process may leadto air pollution and smog. The current practice at AUO
is closed collection of VOCs for treatment using the bestpractical control technology. The VOCs are concentratedusing Zeolite rotor concentrator and channeled into
the Regenerative Thermal Oxidizer (RTO) for treatment
before release. The process is monitored by an automatic
continuous monitoring system to ensure that the control
equipment is in working order. In 2023, an additional
set of control equipment (Rotor and RTO) was added by
AUO to increase VOCs treatment efficiency and reduce
air pollutant emissions due to increase in production
capacity. The upgrade improved overall VOCs treatment
eff iciency by 4% and removal performance was 92%,
better than that required by law. Annual VOCs emissions
were therefore reduced by 0.7 tons. At the same time,
AUO is continuing to make ref inements to control
equipment. Increasing the thickness of the heat storage
blocks in the RTO combustion chamber to improve heatrecovery and reduce consumption of auxiliary fuel helped
reduce natural gas consumption by 160,000 m3 per year.
Emissions of the air pollutant Nitrogen Oxides (NOx)was reduced by 0.26 tons per year and GHG emissions
reduced by 305.58 tons CO2e year as well.

2023 Progress

138.75

Not Achieved

2024

2025

2026

TargetTargetTarget<142.1<140.65<139.20Taichung Site 1 - Replacement of Raschig Rings in Scrubber Tower
Waste emissions produced by the production process are
directed to the scrubber tower via the collection system.
Pollutants in the emissions are then absorbed into thescrubbing liquid through physical and chemical reactions.
Raschig rings are used to ﬁll the ﬁller layer in the scrubber
tower. The larger the Raschig Ring, the greater the contact
area between the emissions and the scrubber liquid
becomes, and the more effectively pollutants are removed
from the emissions. In 2023, AUO replaced the Raschig Ringsin the scrubber tower for the acidic emissions system with
impact-resistant Raschig Rings to prevent damage that may
reduce the specif ic surface area and thus impact on theremoval of air pollutants. The measure will help ensure theoptimal performance of pollution control facilities.

Emissions
Deaeration
layer
Washing
solution
Filling layer Raxi ring
Process
exhaustReplacement with
impact-resistantmaterial

Longtan Site - Optimization of Energy Consumption for Process Water Total Recovery System
AUO Longtan Site was the ﬁrst factory in Taiwan to realize total recovery of process water and zero emissions. In terms of zero
discharge of process wastewater, AUO’s previous practice consisted of a constant pressure dryer in the end processing unitthat evaporates the water from the concentrated waste liquid with 120°C heat. The residual salts are then collected for disposal.
The evaporation process not only consumes diesel for heating but also generates air pollutants. In 2023, AUO converted the 4
more energy-intensive constant pressure dryers to low-temperature, reduced pressure dryers that use vacuum to lower theboiling point of concentrate wastewater. Beneﬁts include lower diesel consumption and air pollution. The introduction of the
new equipment will reduce diesel consumption by 1,285.9 KL per year and the emission of air pollutants such as Sulfur Oxides(SOx) by 23.35 tons, Nitrogen Oxides (NOx) by 3.08 tons, and GHG emissions by 3,362.35 tons CO2e.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report103

3.4.4 Reuse of Waste
Waste recycling, reuse, and reduction are important to AUO. The 3R approach (Reduce, Reuse, Recycle) is prioritized with incineration or landﬁll used if there are no other options. AUO is continuing
to develop the “10 Circular Models for Industrial Waste Disposal Plan” with Resource Circulation Network Waste Disposal Plan as the goal. AUO also plans to undergo UL 2799 Zero Waste to Landﬁll
certiﬁcation in 2024 to progressively align all sites with international trends on carbon reduction and material circulation. AUO has implemented target management by deﬁning indicators for “Total
Output of Non-recycled Waste” and “Total Output of Non-recycled Hazardous Waste.” The two indicators are used to periodically review progress on waste output and recycling. Enforcement of waste
management is also emphasized at AUO. Waste sorting and disposal is covered during orientation training for new AUO recruits. Environmental safety personnel in Taiwan also undergo education andtraining on waste permit documentation, laws and regulations. For control of waste risks, Taiwanese sites use a total process management system to verify the four operational aspects of waste planning,
output, temporary storage, and disposal. This year, automatic search of waste-related abnormal media reports was employed to help AUO monitor waste contractor operations to prevent disruptions towaste removal and for risk control.
Achieved

Waste management target

2023

Total volume of non-reusable waste
Unit: tons

< 8,900

Total volume of hazardous unreusable waste
Unit: tons

< 3,500

Not Achieved

2024

2025

2026

TargetTargetTarget6,108< 8,700< 8,500< 8,300

2,093< 3,400< 3,300< 3,200

2023 Progress

Note1: AUO primarily generates hazardous waste including etching waste liquid (from the etching process), photoresist waste liquid (from Array and Cell processes), mixed solvent waste (from all processes), etc. All ofthese waste types are recycled or disposed of through legal methods such as reuse or incineration.
Note2: AUO is actively reducing waste. In 2023, it adjusted its waste management goal, which is more aggressive than the targets disclosed in the 2022 sustainability report (p83).

Houli Site - Intelligent Control for Dryer

Houli Plant – Recovery and Reuse of Stripper Steam

Wastewater f rom production processes generate large amounts of sludge after
treatment. The sludge goes through concentration, mixing, and drying processes to beturned into sludge cakes before being removed by waste contractors for disposal. The
process is not environmentally friendly and has high costs. AUO introduced the organic
sludge lysis reduction system in 2019. Conditioning chemicals and Hydroxyl radicals
are added before high-speed oscillation and mixing to break down organic sludge
cells followed by separation of solids and liquids, dehydration, and drying to effectively
prevent problems such as lack of available landﬁlls and foul odors that affect disposal oforganic sludge. In 2023, AI technology was added with intelligent control of temperature
differences and air pressure changes inside the oven that reduced drying time by around
10%. This will reduce annual power consumption by around 40.46% and the amount oforganic sludge by 29.45%.

The AUO stripper process uses stripper at 70°C and percussive cleaning sprays that form
hot steam containing stripper within the machine. Sealed extraction was therefore used
to prevent contamination from leaked steam but extracted steam led to indirect loss of
stripper through the emissions exhaust conduits. Condensate recovery equipment wastherefore ﬁtted to the extraction conduits to recover stripper condensate through Process
Cooling Water (PCW). Cyclonic condenser was introduced into the condensate recovery
equipment by AUO in 2023 to increase condensation performance by reducing the coldside temperature from the lowest 18°C achievable by PCW down to 0°C. Improving cooling
eff iciency increased stripper recovery and reduced the need for replenishment of new
stripper. The measure reduced the amount of stripper replenishment by approximately 876
tons a year.

1 Business
Operation

CONTENTS

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report104

3.5 Biodiversity
3.5.1 Vision & Progress
The rich resources and environmental services provided by biodiversity form the cornerstones of development for human society. Linear economic development that is over-reliant on environmental
resources has now led to worsening climate change and the depletion of environmental resources. The Global Risk Report published by the World Economic Forum now lists biodiversity as a crisis thatis second only to climate failure in importance. To reverse the loss of biodiversity, AUO recognizes and responds to the importance of global biodiversity, ecosystems, and conservation of forests and thenatural environment, and we respect and support the spirit of the Convention on Biological Diversity and of the Kunming-Montreal Global Biodiversity Framework to fulﬁll a shared vision of living inharmony with nature. Thus, the “AUO Biodiversity, Ecosystems, and Zero-Deforestation Policy” was formulated by AUO to commit the Company to partner with our value chain to cherish, conserve, restore,
and rationally utilize biodiversity for the sake of maintaining global ecosystem services and delivering beneﬁts essential to all individuals. We adhere to the following guidelines for the sake of achieving
the vision of no gross deforestation and no net loss/net positive impact on biodiversity by 2050. AUO production sites are all located in government-planned technology parks and industrial parks, or areas
zoned for industrial use in urban planning. None are located in or near environmental conservation areas or areas important to biodiversity. Our routine operations not only comply with local environmental
regulations but also adhere to even stricter internal standards to alleviate our burden on the local environment and ecology, and to avoid impacting on local biodiversity in a signiﬁcant way.

Foster positive impacts on
biodiversity, Fulﬁll a living inharmony with nature

Positive Impact
Environmental education promotion, supplier response

Positive
Impact

Adapt

Restore● AUO has 4 factories that have received the LEED certiﬁcation● Apply Task Force on Nature-related Financial Disclosures (TNFD)
in risk management
Assess & Disclose

Restore
Adapt

Refer to and follow relevant international disclosure frameworks
such as GRI Guidelines, Science-Based Targets Network (SBTN)
guidance, and Task Force on Nature-related Financial Disclosures(TNFD), and disclose relevant information to external stakeholders.
Stakeholder Communicate/Respect the Rights

AUO's Biodiversity
Policy Framework
AUO
Operation

Stakeholder partnership cultivation, environmental impact
assessment public hearing

Disclosure of Nature-related Information
As a TNFD Adopter, AUO is committed to the disclosure of nature-related ﬁnancial
information from 2024 onwards. Self-identiﬁcation and assessment was conductedby AUO using the recommended framework announced by TNFD in September
2023 as a guide. Nature-related dependencies, impacts, risks and opportunities
were also identif ied, assessed, reviewed, managed and disclosed by AUO. We
also continued to carry out internal research and assessment to fulf ill AUO
commitments made in the AUO Biodiversity, Ecosystems, and Zero-Deforestation
Policy. We will gradually realize our vision of living in harmony with nature andexert a positive inﬂuence on biodiversity.

TNFD Report
AUO TNFD Report

Internally: In case of signiﬁcant impacts caused by photovoltaic power
plants, make efforts to carry out on-site environmental restoration or offsite compensation.
Externally: Promote tree planting and participate in ecologicalconservation efforts.
ReduceReduceEnvironmental regulations, such as water discharge standards, air pollution
control, etc.
Avoid

Avoid

Material procurement: Green procurement (EPA label,FSC...)
Production: environmental impact assessment
Product impact: green product label / regulatory compliance (EPEAT,
WEEE, RoHS…)

Biodiversity Dependence & Impact Assessment
To establish the dependence and impact of biodiversity, AUO followed the LEAP (Locate, Evaluate, Assess,
Prepare) recommended by the Taskforce on Nature-related Financial Disclosures (TNFD). The categories
deﬁned by the Greenhouse Gas Protocol was also used as a reference with some adjustments made to divided
AUO’s value chain activities into 21 activity types and 3 categories - Upstream, Operations, Downstream. These
were used together with the 12 types of impacts in ﬁve categories deﬁned by the TNFD and Natural Capital
Protocol to inventory the environmental impact of the AUO value chain. The f indings of the preliminary
inventory is as shown in the impact heatmap. It can be seen that the environmental impacts from operationsof AUO’s value chain were concentrated mainly in changes to usage of terrestrial ecology, water consumption
and use of other resources, GHG emissions, air pollution, waste, and interference. Environmental impact wasmore extensive from upstream procurement of products and services, fuel and energy-related activities, waste
generated and externally purchased electricity during operations, as well as downstream disposal of soldproducts, and leasing of assets. In the future, AUO will continue to reﬁne our analysis and use it as the basis forfurther mitigation and compensation actions.

CONTENTS

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Operation

3 Environmental 4 Inclusive
GrowthSustainability

2 Sustainable
Management

5 AgileInnovation

Subsidiary

Categories of Value Chain Activities

Upstream

Operation

Business travel

Companytransportation vehicles

Capital goods

Employeecommuting

Manufacturing
process

Fuel and energy related activities

Purchased
electricity

LocationsCompanyequipment

Social engagement

Investment
process

105

Terrestrial ecosystemuse change

Downstream
transportation emissions

Freshwater ecosystemuse change

Upstream

Purchased products andservices
Capital goods
Fuel and energy related
activities
Upstream transportation
emissions
Upstream leased assets
Business travel
Employee commuting

Operation

Wastes generated during
the production process
Purchased electricity
Company equipment
Company transportation
vehiclesManufacturing process
LocationsDownstream

Social engagement
Downstream
transportation emissions
Processing of products
soldInvestment process
Use of products sold
Final processing ofproducts sold
Downstream leased
assetsTerrestrial
ecosystem
use change

Freshwater
ecosystem
use change

Water pollution

Biologicalmodiﬁcations

Soil pollution

DisturbanceWaste management

Resourceuse

ClimatechangeWater
consumption

Greenhouse gas
emissions

Other resources

Final processingof products soldLand/Freshwater/Marine use change

Air pollution

Marine ecosystem usechangeProcessing of products soldResource use

MarineWater
ecosystem
consumption
use change

Other
resources

Invasion of alien
species or otherimpacts

Pollutio

Franchise

Use of products sold

Wastes generated during
the production process

Franchise

Land/Freshwater/
Marine usechangeDownstream leased assets

The value chain stages and detailed sub-categories reference the GHG Protocol category,with ﬂexible adjustments and supplementation.

Heatmap ofenvironmental impacts
from operational
activities

2023 AUO Sustainability Report

Supplemental items
Downstream

Purchased products and services

Upstream leased assets

Appendix

ImpactGHG Protocol category

Upstream transportation emissions

Fact
Sheet

ClimatechangeGreenhouse
Air pollution
gas emissions

Pollution
Waterpollution

Soil pollution

Invasion of alien species
or other impacts
Waste
BiologicalDisturbancemanagement modiﬁcations

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

106

Positive Effect Created by Sustainability Action
In addition to identifying and inventorying hot spots for dependence and impact on biodiversity and the environment then progressively adopting mitigation measures based on the outcomes of theinventory, AUO is also actively exerting our corporate inﬂuence to expand our social engagement and lead all employees, customers, and supply chain partners in confronting the effects of the climate
crisis of marine and terrestrial resources, and the impact on biodiversity. We are working with stakeholders to launch a series of sustainability actions that will co-create positive beneﬁts for biodiversity.
Reduction of Threats to Biodiversity
A 5-Year Mikania Micrantha Control Plan was proposed
to prevent the introduction and establishment offoreign invasive species. AUO took responsibility forenvironmental conservation around our discharge
outlet on the Xiaoli River by regularly removing Mikania
Micrantha vine growing beside the roads along theriver near the discharge outlet. Our target is to reduce
Mikania Micrantha coverage by 30% after 5 years (2027).

Satisfying Human Needs throughSustainable Use and Beneﬁt-sharing
To increase the amount of green space and blue belts in cities anddensely populated areas as well as support the government’s National
Ecological Conservation Green Network Construction Plan, AUO
launched the “Green Party” series of mountain and sea initiatives. The
initiatives included tree planting and protection within sites, adoptionof soil conservation forests, and coastal clean-ups. AUO also partneredwith local revitalization groups to launch conservation actions orservices targeted at local and nearby ecosystems.

Tasks, Mainstreaming Tools and Solutions
To promote corporate responsibility and responsible
consumption, based on AUO's plastic neutralization
policy, we are initiating the "2023 Plastic Reduction
Year". This goal will focus on two major areas: productmanufacturing and employee behavioral impact, withthe goal of achieving plastic neutrality by 2030.

Forest Circulation
To uphold the principle of zero waste and the ideal of ecology ﬁrst, AUO embraced the concept of the circular economy by promoting green sustainable circular products to make thetimber circular economy a reality. To this end, AUO partnered with the Dawoko social enterprise to take wood from tree thinning at AUO sites and ﬁre them in a kiln to produce woodvinegar. The wood vinegar was turned into site’s everyday daily necessities such as soap and cleaning liquid. The innovative circular initiative was recognized with a third price in the
procurement category, and a special prize in the environmental sustainability division at the Ministry of Economic Affairs’ (MOEA) 2023 “Buying Power - Social Innovation Products andServices Procurement Awards.” At the same time, the AUO Foundation also gave Mikania Micrantha vines collected during the Mikania Micrantha remove and river protection event to
the local revitalization association. Mikania Micrantha, also known as the green cancer, were converted through the association’s circular regrowth technology into “green gold.” AUO wasable to take action and exert a positive inﬂuence on biodiversity.

To help stakeholders understand AUO value chain’s dependence and risks on biodiversity,
AUO used the ENCORE assessment tool co-developed by Global Canopy, UNEP FI, andUNEP-WCMC to analyze and collate the results of AUO’s biodiversity risk assessment basedon the nature of the industry to provide a reference to stakeholders. The analysis found that
dependence on biodiversity during AUO operations included high dependence on surface
water and minor dependence on ground water supplies. Impacts on biodiversity included
moderate impact from water and soil pollution, as well as minor impact from solid waste
and environmental interference. An analysis was also carried out natural capital hotspot area
information supplied by the ENCORE assessment tool (from level 0 to 4, with 4 being the most
severe). AUO’s Huaya Site, Longke Site, Longtan Site, Hsinchu Site, Taichung Site, Houli Site,
Tainan Site, Kaohsiung Site, and Xiamen Site were all located in biodiversity level 2 hotspots.
Kunshan Site, Suzhou Site, and Slovakia site were located in level 3 hotspot areas, and there
were no sites located in the most precious level 4 hotspot areas. Due to the nature of the
upstream and downstream processed in the industry value chain, AUO is therefore highly
dependent on water-related services and stable quality. There is also for greater potential
impact during the water consumption process. For this reason, AUO has continued to invest
in water-efﬁciency improvements over the years. In addition to making further reﬁnements toour own water cycle, AUO is also actively encouraging suppliers to join in improving their water
utilization.

AUO Biodiversity Operating Location Hotspot
TaiwanChina

Slovakia

CONTENTS

1 Business
Operation

3 Environmental 4 Inclusive
GrowthSustainability

2 Sustainable
Management

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report107

3.5.2 Plastic Neutrality
AUO supports international interest in biodiversity and the “Kunming-Montreal Global Biodiversity Framework” Many research reports indicated that one of the key threats to biodiversity is plastic, amaterial that is used extensively in everyday life. For this reason, AUO made the decision to take part in plastic reduction action. We also hope to lead by example and persuade the rest of the industry
to take the issue of plastics seriously. AUO started by conducting a full inventory of plastic consumption during the production process and employees’ ofﬁce lives. Base year was set as 2023 with “plastic
neutrality” to be achieved by 2030. The “3R+1” strategy (Replace, Reduce, Recycle, Rethink) was adopted by AUO and a trans-unit plastics working group set up to oversee plastic reduction tasks. At thesame time, AUO also announced the plastic neutrality target at the annual Supplier Creating Shared Value Conference. Value chain partners were also encouraged to join in the plastic reduction initiativeand reduce the environmental impact of plastics.

AUO Plastic Neutrality Strategy

Plastic Flow & Neutrality Strategy

Plastic used+

Plastic reused

Product
Recycled
plastic(Usage)Plastic usedin production

Strategy
Strategy

Additional neutralization
through use of recycledplastic in products

Waste plastic

Reduce amountof recycled plastic
packaging at the source

Reclamation

Strategy

Recyclable materials

Increase ratio of waste
reclamation and recycling

Reduce plastic
waste

+

Types of plastic used by AUO

Strategy

Plastic reuse at AUO(Reused amount)

Reduce amountof plastic usedby employees

Source reuse

Strategy

Improve recycling
rate for plastic
packaging=

Incineration andlandﬁll

Plastic usedby employees

Internal circulation

Strategy

Recycled plastic in
product

Disposal(Incineration, landﬁll)

Paid recovery

Strategy

Improve
recycling rate
for employee
plastic waste

Incineration, landﬁll

Strategy

Reduce ratio of
incineration andlandﬁll

Incineration, landﬁll

Strategy

Reduce ratio of
incineration andlandﬁll

Note 1: Production-related plastics include plastic packaging materials used by AUO’s suppliers, indirect plastic materials used in
AUO's production processes, and plastic packaging materials used in inter-factory transportation.
Note 2: Plastic used by employees include bulk plastics (such as PET bottles) used by employees in the workplace, andneutralization efforts in this area will gradually expand in the future.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

108

In Manufacturing: End-to-end Management Approach
Phase

Start
Procurement
and Supply

Manufacturing

Waste
generated inoperations
End

Management Approach
The supply chain is the AUO portal to plastic
materials. The Supply Chain department
plays a critical role in managing theuse of plastic indirect materials during
production and packaging materials for
product transportation. “Increasing theratio of recycled plastics in packaging andindirect materials as well as the recycling
rate of plastic materials) were chosen by
AUO as key areas for management andimplementation targets set.

The Manufacturing department is themain user of plastic consumables. It is also
the decision-maker on plastic usage andgeneration of plastic waste. “Reduce use ofplastic consumables”, “improve recyclingof consumables” and “increasing therevitalization potential of waste plastics”
were adopted as the main management
methods. In 2023, another inventory was
conducted on plastic consumption. The
spirit of 3R was used to roll-out multiple
plastic consumable improvement projectand establish an on-site plastic circulation
process.

The Environmental Safety department
is the gatekeeper on waste plastics.
Some of the plastics in our sites arecomposites that cannot be recycled
so where usually disposed of throughlandﬁlls. “Establishment of detailed sorting
processes and expansion of channels formaterial collection and recycling” wastherefore adopted by AUO as the primarymanagement method. Potential for plastic
recycling and reuse was increased throughprocess reviews and sorting at the source.

Action Taken

Key Outcome

AUO launched supplier partnership projects on packaging recycling in 2018. Recycled categories
encompassed 8 commonly used plastic materials including L-supporter, Pol box, PP box, T-Box,
Tray, collection bins, pallets, and partition boards. A common example is plastic trays and pallets.
1,348 tons were used in 2023. AUO conducts long meetings with suppliers to discuss recycling
targets and plans.

Plastic
Packaging
Averagerecycling rate
>95.8%

AUO supplies collection containers and set up collection points at factories to facilitate thecollection, sorting, cleaning, and repeated use of packaging. AUO must also coordinate therequirements of the Transport, R&D, QC, and Production departments to minimize supplierdemand for plastic packaging while maintaining the same costs, quality, and production efﬁciency.
Packaging that with plastic reduction potential must also be identiﬁed.

Trayaverage recycling
rate 96.4%

Supplier Packaging Recycling Project

Promotion of New Modular Plastic Pallets
AUO partnered with the supplier to replace legacy pallets with a new modular plastic pallet. Damaged
parts can now be replaced by itself instead of scrapping the entire pallet. Modular plastic pallets cangive old pallets a new lease of life, increases the service life of plastic pallets and reduces wastage.
Lower frequency of sticky mat replacements
Clean room sticky mats must be made from plastic consumables that are frequently replaced tomaintain the cleanliness of the clean room. These may contain special materials or chemicals thatare difﬁcult to recycle and reuse. If this happen then either incineration or landﬁll will be carried out.
Reduction assessment and veriﬁcation were therefore carried out by AUO to adjust the sticky mat’s
replacement frequency through substance analysis and cleaning management.
Introduction of reusable PVC gloves
AUO has imposed restrictions on latex gloves. Reusable PVC gloves were introduced except in
special production areas. On-site operations include employee orientation and training, as well as
the establishment of a management mechanism for swipe cards at access control. This is to prevent
improper use by other people. Alternative wearables that can be used will continue to veriﬁed in the
future.

Lower
consumption of
sticky mats
20%
Reduce PVC
glove usage
50%

Recycling of waste polarizers
In 2023, AUO switched to Solid Recovered Fuel (SRF) as the disposal method for the 79.68 tons ofpolarizers produced by our sites. The polarizers were handed over to qualiﬁed vendors and used as
an alternate fuel for coal in their boilers to offer an enhanced circulation model.
Aluminum and plastic separation
Most raw materials at AUO are packaged in aluminum foil bags to protect high-precision materials
against contamination. Aluminum foil bags are an aluminum-plastic composite that can only bedisposed of through incineration or landfill. After extensive testing with vendors that share ourideals on plastic reduction, an aluminum-plastic separation technique was successfully developedby AUO. The technology is now used by contractors to assist AUO with foil recovery. A total of
92.61 tons was recovered in 2023. The recovered aluminum bars and recycled plastic can all be remanufactured into other products to realize the resource cycle.

Reuse of recycled
aluminum foil
92.61 tons

CONTENTS

1 Business
Operation

Material Topics

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report109

Organizing of annual energy-efﬁciency and carbon reduction eventsAt Ofﬁce: Encouraging Rethink on Plastic Reduction
HR plays an important role in promoting the plastic reduction culture of AUO. In addition to setting total process management indicators based on producer accountability, source reduction, productcircularity certification, improving plastic utilization, and reducing plastic waste, HR also makes active efforts to promote employee consensus and action on plastic reduction in food, clothing,accommodation, and transportation through the cultivation of supportive spaces, equipment, and atmospheres.

Plastic Reduction in Food & Beverages

Plastic Reduction in Clothing

Plastic Restrictions in the Dormitories

Literacy Education

AUO removed disposal utensils f rom
cafeterias at all sites in 2023. Employees
are also offered discounts for bringing
their own eco-f riendly cups. Posters
were also put up in shops to discourage
the buying of bottled water or beverages
in PET bottles. Efforts were also madeto raise awareness on recycling of PET
bottles. In 2023, the purchase quantityof PET bottles decreased by more than
220,000 compared to 2022.

AUO distributed more than 38,000
pieces of sports clothing made f rom
100% recycled PET f ibers. The indoor
slippers of employees are now all madef rom recycled PET bottles. Employee
are encouraged to start with theirclothing and embrace plastic reducing
green fashion.

Employees use many plastic goods intheir dormitories. AUO set up exhibitions
on how plastic reduction in everyday
life in the dormitories, introduced smart
eco-f riendly machines, and provided
PET recycling services, and laundry
agent ref ills. Recycling cabinets werealso set up so that clean empty bottles,
clean plastic bags, and paper bags canbe reused. A mechanism for transfer
of used goods such as appliances andfurniture was also set up to encourage
resource reduction, recycling, andsharing among employees

The plastic reduction culture wasinstilled by AUO into the off ice areas.
Creative methods were used to raise
employee awareness on environmental
issues and cultivate their sustainability
citizenship. In 2023, plastic reduction
exhibitions were organized at AUO sites
in Taiwan and China featuring recycledplastics turned into art installations.
Promotional videos were also madewith employees invited to serve as
plastic reduction ambassadors sothat the DNA of plastic reduction canplanted in the hearts of every AUOer.

Taiwan Sites - Space Inﬁnity
The “Space Infinity” unmanned smart retail and sustainable merchandise shop was set up by AUO in 2022 tocultivate employee understanding of SDG sustainability goals. Merchandise based on different sustainability themes
are put on display each quarter in collaboration with social enterprises. In 2023, a plastic reduction special exhibition
was organized to complement the AUO “Plastic Reduction Year Zero” in 2023. Interactive exhibits introduced
employees to the seven main types of plastics, and the everyday items they are used to make. Eco-friendly products
made by social enterprises from recycled plastics were also promoted to encourage employees to engage in
responsible consumption through selection of low-carbon, and low-plastic products in everyday life.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental 4 Inclusive
GrowthSustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix

Taiwan Site - Environment & Plastic Reduction Month
AUO is working to combat climate change through energy efficiency, carbon reduction, environmental protection, and other issues. In
July 2023, the “Environment and Plastic Reduction Month” event was held to invite employees to join in practicing plastic reduction in
everyday life. Employees could use their personal electronic plastic reduction passport to take part in a 21-day plastic reduction challenge. By
accumulating one simple green action every day, employees could make a difference in their everyday life and at work. These included theuse of eco-friendly utensils, bringing their own eco-friendly shopping bags, cycling instead of riding a car/motorcycle, and so on. The gradualreduction in use of plastic goods aimed to reduce the burden on the Earth’s environment over time. The 21-day challenge for Environment
and Plastic Reduction Month attracted 19,458 participants. Practicing plastic reducing behavior for everyday food, clothing, accommodation,and transportation turned people into plastic reduction gurus.

Suzhou Site - Environmental Protection Group Exhibition

Kunshan Site - Plastic Reduction Events

Suzhou Site hosted an environmental protectiongroup exhibition with plastic reduction as
its theme. The quartet of “Plastic reshaping,
Plastic reduction, Plastic innovation, andPlastic leadership” introduced employees
to the rebirth cycle of waste plastics andmore than 400 employees were drawn totake part in the event. For the exhibition, 15
departments used their imagination andcreativity to craft plastic reduction artworks.
HowBottle CEO Jiayu Lun was also invited
to share her start-up history, and plastic
reduction philosophy in order to provide
employees with guidance on how putting
plastic reduction in practice.

Kunshan Site added dedicated PET recycling bins
and encouraged employees to bring their own
cups to meals. A strong emphasis was also placedon employee participation in plastic reduction
through the exhibition on the CD-ROM initiative inthe cafeteria, PET discount coupons for convenience
stores, and exchanging PET bottles for towels
at dormitories. We collaborated with Tzu Chi
Foundation to invite employees to engage in on-siteexperiences at Tzu Chi sites such as waste sorting and
PET recycling. A positive ambiance was cultivatedto promote employee awareness on environmental
protection.

Xiamen Site - Plastic Bottle Recycling Machine
Xiamen site was the f irst business in
X i a m e n to i n t r o d u c e d a d e d i c a te dplastic bottle recycling machine. Xiamen
Site partnered with Fook convenience
stores and Income Resources to place aplastic bottle recycling machine in each
off ice building to cultivate employees’plastic reduction awareness in everyday
life. We also partnered with the Tzu Chi
Foundation to host a plastic reduction
exhibition. The exhibition on the entire
plastic bottle recycling process, conversiono f wa s te i n to t r ea s u r e , l ow - c a r b o nvegetarian food experience and otherlearning through play activities conveyed
the ideals of plastic reduction to the 800
employees that took part in the event.

East China Sports Carnival &Plastic Reduction Group ExhibitionS u z h o u S i te j o i n e d fo rce s w i t h 9 l o c a l s o c i a lenterprises to craft an exhibition on the themeof plastic reduction. The exhibition featured asustainability exhibition zone, interactive check-in
zone, DIY zone, and popular science education andcharity sale zone to display AUO accomplishments
in sustainability so far. The sharing of real-world
plastic reduction cases was also used to convey thesustainability philosophy to other partners and our
employees. The exhibition invited everyone to make apersonal contribution to sustainable development by
pitching in on plastic reduction and environmental
protection.

2023 AUO Sustainability Report

110

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

44 Inclusive
Growth5 AgileInnovation

4.2 Talent Attraction &Development
4.2.1 Talent Distribution

Expand the scope of human rights
risk investigation
to include subsidiaries, joint ventures,tier-1 suppliers, outsourcers, contractors,
and neighboring communities

Establish more than 6,000 courses at

AUO University. On average, our global
employees dedicate 25.5 hours tolearning each year

Fact
Sheet

Appendix2023 AUO Sustainability Report

111

Inclusive Growth

4.1 Human Rights Protection

Annual Highlights

Subsidiary

4.3 Talent Development

4.5 Social Engagement

4.3.1 AUO University

4.5.1 AUO Foundation

4.3.2 Performance Management &Career Development

4.5.2 Charity Care
4.5.3 Green Living

4.2.2 Diversity & Inclusion

4.4 Health & Safety

4.5.4 Popular Science &Environment Education

4.2.3 Remuneration & Beneﬁts

4.4.1 Health Care

4.5.5 Cultural Preservation

4.2.4 Happy Workplaces

4.4.2 Safe Workplace

Material Topics

Introducing the DEI competency survey

and organizing a series of DEI Monthevents, embracing a culture of friendlinessand diversity

Established diverse career development
channels, with an internal promotion rateof 89% for supervisors and professionals.
Additionally, our personnel department
rotation rate is 26%◆ Talent Attraction & Development◆ Sustainable governance operation

A+ Summer Internship is heading towards
internationalization by forging international
Industry-Academia collaboration andrecruiting exceptional talents fromaround the world

Joined the Science Popularization

Train, we brought themed courses on zerocarbon emissions and sustainable energy toremote areas

Our Vision
Creating a Friendly Workplace
AUO values a culture of "people-oriented" and hopes to create a workplace environment that safeguards employee safety and is diverse and inclusive, in order to uphold the values of fairness andequality. We hope to enable employees to fully utilize their strengths in a friendly working environment while also immersing themselves in their work, family life and healthy activities.

Cultivating Social Citizens
AUO Foundation develops four major business areas: "caring for social welfare, environmental & science education, green earth, and culture prevention". It also establishes four volunteer systems, callingon all employees and their families to participate together, with the aim of shaping a positive and proactive energy for society.

Target and ProgressMaterial topic

Percentage of
employees who
experience happinessand are willing torecommend others toparticipate

Achieved
2023
Target76%

Q12 annual
questionnaire
communication
channels survey on
employees’ recognitionof the company andwork (Note 1)

80%

Learning passport
assignment
completion rate

>90%

Internal promotion
rate for executive andprofessional positions

82%

Improve theparticipation of all
employees and enrich
the knowledge energy
through multiple
innovative techniques

20,000persontimes

Indirect staff job
rotation rate

>30%

2024
Target2025
Target2026
TargetResponses

To understand employee sentiments, we conduct the Q12 employee
engagement survey annually at Friend. In the 2023 survey results, 88% of
employees identiﬁed that they felt happy and would recommend others
to participate. The average engagement levels for employees in theareas of basic needs, management support, teamwork, and learning andgrowth reached 84%. AUO also utilizes the survey results as a reference for
optimizing our human resource strategies and continuously enhancing
employee engagement.

78%

79%

78%

4.2.4
Happy
Workplaces

To understand employee sentiments, we conduct the Q12 employee
engagement survey annually at Friend. In the 2023 survey results, 88% of
employees identiﬁed that they felt happy and would recommend others
to participate. The average engagement levels for employees in theareas of basic needs, management support, teamwork, and learning andgrowth reached 84%. AUO also utilizes the survey results as a reference for
optimizing our human resource strategies and continuously enhancing
employee engagement.

80%

80%

80%

4.2.4
Happy
Workplaces

AUO employs quarterly automated reminders and tracking mechanisms toensure the implementation and execution of courses by the college and theeducation committee.

>95%

>95%

-

4.3.1
AUO University

2023 Our actions

performance:
88%

performance:
84%

performance:
97%

performance:89%

For outstanding talents, AUO has implemented a dual-track promotion
system for supervisory and professional positions. In 2023, the internal
promotion rate for supervisory and professional roles reached 89%.

AUO systematically offered diverse themed courses to cultivate ESG
competence among all employees. In 2023, a total of 34 classes including
performance: general education, trends, and advanced courses were conducted, with a
29,980 person- cumulative participation of 29,980 person-times.
times

performance:
26%

Not Achieved

AUO values internal talent mobility and has designed talent development
and rotation mechanisms. In 2023, the indirect personnel department
rotation rate reached 26%. We will continue to encourage colleagues toundergo job rotations after becoming proﬁcient in their current roles.

>80%

>80%

-

4.3.2
Performance
Management& Career
Development

24,000persontimes

25,000persontimes

28,000persontimes

4.3.1
AUO University

-

4.3.2
Performance
Management& Career
Development

>30%

>30%

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report
Achieved

Material topic

2023
TargetRegular follow-up visit
rate for personnel withthree-hypers

80%

Major accident

02023 Our actions

performance:
70.55%

performance:
7

AUO

Frequency of disabling
injuries (FR)<0.2

performance:
0.49

In 2023, the main types of occupational accidents were related to pinching/rolling/crushing, slipping/falling, and bashing/hitting incidents. AUO has
already formulated improvement measures and will diligently implement
them to achieve the established safety targets.

Number of industrial
safety accidents<16

Number of trafﬁcinjuries<116

performance:
0.19

performance:
17

In terms of occupational safety accidents, AUO has implemented special gas
and chemical safety management, as well as battery safety management
projects. In terms of transportation injuries, we will enhance defensive driving
training and promotion to raise awareness of trafﬁc safety among employees.

performance:
150

2023 Our actions

Not Achieved

2024
Target2025
Target2026
TargetResponses

85%

85%

-

4.4.1
Health Care0 case0 case-4.4.2
Safe Workplace

<0.2

<0.2

-

4.4.2
Safe Workplace

<0.2

<0.2

-

4.4.2
Safe Workplace

<15

<15

-

4.4.2
Safe Workplace

<115

<115

-

4.4.2
Safe Workplace

2024
Target2025
Target2026
TargetContractor<0.2

Material topic

AUO values the health of our colleagues and conducts monthly assessmentsof the health risk index for all employees. We also closely monitor colleagues
at high risk of cardiovascular and cerebrovascular diseases, and ensure theyreceive regular check-ups. In 2023, the regular check-up rate for colleagues
reached 70.55%. We will continue to enhance health awareness among
employees through the Wellness Center.

113

TargetQ12 annual
employee survey
coverage rate

This is a newly established goal, the results of which will be disclosed in the 2024 AUO Sustainability Report.

81%

82%

85%

Overall salary levelcompared to theindustry standard(Note 2)This is a newly established goal, the results of which will be disclosed in the 2024 AUO Sustainability Report.

Top 25%

Top 25%

Top 25%Note 1: To avoid inconsistencies in the deﬁnition of recognition rate and CSR EPS, the original target for this issue disclosed in 2023 has been redeﬁned and reset as the Q12 annual employee survey, average recognition
degree of employees in four aspects (basic needs, management support, team cooperation, learning growth), and a new target for response coverage rate has been added.
Note 2: In the Taiwan Stock Exchange’s public information observatory, the median salary of full-time employees who do not hold managerial positions is in the top 25% of the same industry.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report114

4.1 Human Rights Protection
AUO is dedicated to promoting and safeguarding fundamental human rights. In 2006, we implemented the “Human Rights Management Policy” basedon internationally recognized standards such as “Social Accountability 8000”, “Global Sullivan Principles”, the “UN Guiding Principles on Business andHuman Rights”, the “Proposal for a Directive on Corporate Sustainability Due Diligence” published by the European Commission, and the “Responsible
Business Alliance Code of Conduct.” We conduct thorough due diligence on human rights and establish a four-stage human rights management cycle
to mitigate the impact of human rights on our business operations and condemn any acts that infringe upon or violate human rights.
Human rights management policy

Human rights management strategy

Identify risk

Preventive
measures

Monitoring anddetection

Impactmitigation

Conﬁrm material topics in humanrights for the organization andconduct inventory of affectedstakeholders.

Conduct inventory of internal
systems and deﬁne related
policies to prevent human rights
risk incidents.

Periodically evaluate humanrights risks to devise various
preventive policies and actionplans.

Track policies and action plansto ensure the effectiveness ofhuman rights management andmitigate the impact of risks.

Declaration
Compliance with international guidelines
and local human rights laws. Deﬁningof human rights commitment andmanagement approach.

For more about humanrights policy, see
AUO ESG website

Human Rights Management Strategy
Identify Risk
AUO focuses on 12 human rights issues and work together with employees, subsidiaries,
suppliers, contractors, local communities, and other stakeholders to promote and protect
human rights. Through interviews, human rights risk assessment surveys, RBA audits, etc., AUO
grasps the stakeholders’ concerns and responses to human rights risk issues in order to provide
resources and assistance in terms of advocacy, trainings for all employees on discrimination orharassment in the workplace, seminars, and other aspects of human rights governance.

12 Human Rights Issues
Minor

Major

● Unlawful infringement andsexual harassment in theworkplace● Forced labor (working hour)High

Human Rights Risks Matrix● Occupational safety

Possibility

AUO conducts stakeholder assessments on human rights issues. Our 2023 survey expanded
beyond all employees to include risk identif ication for business relationships and Groupsubsidiaries were also incorporated into the scope of risk assessment. We also used the
AUO RBA audit scope as a reference to include subidiaries, joint venture, Tier-1 suppliers,
outsourcers, contractors.. Local communities were added as they may be directly affected by
the production operations. In addition to the 12 human rights issues of concern to the industry,
AUO wanted to take all of the potential derivative issues into account as well. Stakeholders
were invited by AUO to fill out the human rights risk assessment survey and 591 responses
were collected in 2023. In addition to the survey results, we also conducted a total risk
assessment and analysis based on the ﬁndings of internal/external RBA audits, compliancewith labor legislation, and internal complaints mechanisms. AUO’s risk calculations for material
topics was used to identify the degree of risk for each human rights issue based on the twodimensions of “Likelihood” and “Scale/Scope of Impact.” All issues of concern were found tooffer no material risks. Planning was subsequently carried out for prevention of secondary risks
to mitigate or prevent the production of human rights risks and hazards during operations.

MiddleLow● Privacy protection● Health, safety and personal
liberty● Freedom of choice of
employment● Freedom of speech andexpression● Freedom of assembly andassociation● Protection of labor
conditions● Prohibition of child labor● Non-discrimination anddiversity● Right to family life

Small

Impact scale

Large

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report

115

Preventive Measures
Based on the stakeholder risk matrix results, AUO implemented preventive measures, risk communication, and educational training in 2023 for 3 minor risks: “Workplace misconduct and sexual
harassment” and “Forced labor - working hours, occupational safety.” Within the company, preventive measures were taken to prevent human rights risk events through the guidance of relevant policies,
clearly deﬁned complaint procedures, and processing protocols. For the supply chain, AUO strengthened human rights protection and implemented measures such as advocacy, training, and audits
based on the RBA standard.

Internal
Human Rights Policy

Non-sexual Harassment

Based on the human rights policy,
the following policies are formulated,
including:● A “Sexual Harassment Prevention
Policy” and “Workplace ViolencePrevention Policy” has been
established along with a dedicatedsexual harassment/Non-sexual
harassment grievance mailbox.
Any reported or suspected casesof sexual harassment/ Non-sexual
harassment are investigatedby the “Sexual Harassment
Complaints Committee” or “Nonsexual harassment Complaints
Committee”. To protect therights of the complainant, strict
conﬁdentiality is maintained during
the investigation process and thematter is handled in conﬁdence.
Corrective or disciplinary action
taken in case of discriminatory
behavior or harassment.

● Employee Handbook● Work Rules● Recruitment/Employment
Procedures● Sexual Harassment Prevention
Measures● Measures to prevent unlawful
infringement in the performance of
duties● Employee Communication Policy● Complaint Procedures● Sustainability Policy
The above policy documents explicitly
declare the protection of employee
rights, including compliance withlegal requirements, employment
freedom, humane treatment,prohibition of improper discriminationand harassment, and safeguarding
employees’ right to make complaints.
An advocacy for 3 important humanrights issues is conducted annually.

External
Employee Selection, Training,
Employment and Retention

Supply Chain Human Rights
Management● AUO employees undergo annual
human rights policy (Training on
Workplace Discrimination and
Sexual Harassment.) awareness andtraining courses for new hires andmanagement.

● Suppliers are required to sign
the “Supplier/Contractor Codeof Conduct” declaring theircommitment to the protection ofhuman rights. Suppliers must also
participate in the annual CSR risk
assessment and CSR supplier audit
to help AUO track human rights
risks.

Occupational Safety and Health● Create a safe and healthy work
environment through thecollaboration of the HR, Wellness
Center, ESH and other units.
● Preventive planning andsupervision of unlawful
infringement in the workplace aswell as providing employees withcounseling services on physical andmental health.
● Strengthen strategic planningon protective measures in theworkplace, conduct risk assessment
as well as education and training in
the workplace, and the provision ofnecessary protective measures.
● Provide open channels ofcommunication, establish
complaints channels and publish
the complaints procedure, andconduct investigation into open
cases.

● Established system to manage
reasonable work hours andimplementation of managementlevel review mechanism.
● Migrant workers are provided witha bilingual explanation on theemployee protections afforded by
the AUO Sustainability Policy and
RBA Code of Conduct when they
start work. New hires do not haveto pay any expenses. They are notpunished if they choose to resign
or end their contract. Employees
are also guaranteed freedomof movement in the workplace,dormitory, and any other company
premises. Compulsory overtime isalso prohibited.

● Letters are sent to suppliers to raise
their awareness on human rights
topics each year. Suppliers codevelopment events are organized
as well on CSR management
practices including analysis of the
RBA Code of Conduct and laborhuman rights legislation.

Annual Education Outcomes
Awareness
Topic

AUO Human Rights Policy

Stakeholder

Global employees

Outcome

Education and training was conducted
for more than 35,000 people worldwide(including courses for raising awarenesson sexual harassment and workplace
discrimination). The pass rate for postcourse evaluation was 100%.

Trainings on Workplace Discrimination and Sexual Harassment
Employees in Taiwan● Awareness seminar● 157 sessions

Junior management● Self-inspections werecompleted by 984 managers● Risk inventory completed by
673 units

RBA Code of Conduct
Internal

External

9 audit sessions

66 audit sessions

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

116

Monitor, Detection and Mitigation of Impact
AUO values the opinions and rights of our employees. A range of communication channels are used to improve labor rights such as the complaints or suggestions system, and Audit Committee’s
Mailbox. The freedom and conﬁdentiality of employee feedback are also assured through the strictest possible personal information protection regulations and the “AUO Personal Information Protection
Management Regulations.” Labor-management meetings are regularly convened as well to guarantee employees’ right to organize and collective bargaining. We promote healthy and constructive labormanagement relations. To reduce the business impact of human rights risks on AUO, the supply chain, and our partners, appropriate mitigation and compensation measures are established by AUO basedon the outcomes of human rights risk assessments. Preventive measures and improvement plans are formulated based on the degree of risk for each issue with regular follow-ups on implementation
outcomes. If a human rights violation takes place, AUO employees will engage in arbitration and negotiation in accordance with internal procedures. Corrective or disciplinary action will also be taken inaccordance with the work rules in case of discriminatory or harassment. Suppliers, contractors, and outsourcing businesses may have their contract/collaboration suspended or terminated. Punitive ﬁnes
for breach of contract may also be imposed. In the future, AUO will maintain open channels of communication with stakeholders. We will require our supply chain and partners to follow the rules and work
together to set the highest standard in human rights governance.
Human
Rights Issue

Subject ofSpecial Concern

Degreeof Risk● General labor health education andtraining must be conducted every
year along with periodical evacuation
drills; workplace monitoring iscommissioned every six months● Employees

Occupational
Safety● Groupsubsidiaries &Joint ventures● Suppliers

Middle● Contractors,
Outsourcing
Businesses● Employees

Forced Labor● Groupsubsidiaries &Joint ventures● Suppliers

Middle● Employees
SexualHarassment
and Workplace
Discrimination● Suppliers● Contractors,
Outsourcing
Businesses● Promotion of the Four Labor HealthProtection Plans● Management procedure for corrective
and preventive measures wasestablished to ensure immediate
response and improvement on
defects identiﬁed during inspections,problems reported by employees,
and defectives found during audits bycompetent authorities● Prohibition of improper requests
or threats (such as conﬁscation ofidentiﬁcation documents/wages,
physical/psychological violence) thatlead to forced or coerced labor● Prevent involuntary overtime throughregular inspection of work hours andvarious complaints channels● Contractors,
Outsourcing
Businesses● Groupsubsidiaries &Joint ventures

Mitigation Measure

Middle● Provision of effective complaints
channels (e.g. sexual harassment
grievance mailbox, dedicated caseworker) to protect employees against
infringement at work. Protection
mechanism also established to protect
employees against retribution after acomplaint is made● Protective measures to protect
employees from unlawful
infringement such as physical, verbal,
or psychological abuse and sexual
harassment in the workplace

Remediation Actions

2023 Targets● Protective hardware added basedon process requirements andmanagement plans establishedto enhance health and safety
education for personnel● Strengthened education andregulations on the wearing ofprotective equipment by employeeson the shop ﬂoor, and enforcing
supervisor inspections of protective
equipment worn by employees● The main cause of work-related
injury leave is trafﬁc accidents.
Education on trafﬁc safety
precautions was strengthened toreduce trafﬁc accidents duringcommutes and business trips● Provide compensation for overtimein accordance with internal
regulations, stop involuntary
overtime immediately, and restore
employee rights● Conduct RBA audit andinvestigation. For minor infractions,set deadline for corrective action
and offer compensation● Take action in accordance with
“Sexual Harassment Prevention
Policy” and “Workplace ViolencePrevention Policy”● 100% completion
rate for trans-site
RBA audit● Annualfrequency ofdisabling injuries< 0.2

2023 Progress● Completed all 9
internal audits
scheduled for 2023
● 2023 Frequency of
Disabling Injuries
0.49
For improvement
measures, see
4.4.2 Safe Workplace2024 Targets● 100% completion
rate for trans-site
RBA audit● Annualfrequency ofdisabling injuries
< 0.2

p.139

● Total cases ofovertime andworking for morethan 7 consecutive
days: 0 cases● In 2023 there were
3 cases of overtime
that led to labor
disputes. All cases
are now closed● Total cases ofovertime andworking for morethan 7 consecutive
days: 0 cases● 100% closure rate
for related cases● There were 4
sexual harassment
cases and2 unlawful
infringementcases. All cases are
now closed● 100% closure rate
for related cases

CONTENTS

1 Business
Operation

Human
Rights Issue

Subject ofSpecial Concern

2 Sustainable
Management

Degreeof Risk

3 Environmental
Sustainability

4 Inclusive
GrowthMitigation Measure● Vulnerabilities and potential threats
are assessed using the personal
information protection self-assessment
mechanism. Improvement plans arethen drafted based on the outcomes of
the assessment

Privacy
Protection● Employees● Suppliers

Minor● Employees
Health,safety andindividual
liberty● Groupsubsidiaries &Joint ventures● Suppliers

Minor● Contractors,
Outsourcing
Businesses● An Information Continuity Plan isdevised by the Information Security
Committee and related tasks carriedout on schedule to ensure the normal
operation and effectiveness of thatmechanism. These tasks include
inventory of personal information
registries, privacy breach drills, selfinspection of internal controls, regularinternal audits, personal information
impact analysis, and validation of thepersonal information management
system● A health exam is conducted for all
employees once every two years. For
special work stations, health exams are
conducted for special items at statutory
frequencies

Freedom of
Employment● Suppliers

Minor● Contractors,
Outsourcing
Businesses

Freedom of
Speech andExpression● Suppliers● Contractors,
Outsourcing
Businesses

Minor

Remediation Actions● Strengthened education andawareness on personal information
protection for employees● In the event of a privacy breach,corrective action and compensation
is carried out in accordance with thenon-disclosure agreement● Follow-ups and counselingmeasures are arranged based on
the results of the health exam
● Employees can book consultations
with on-site physicians● Cases with high physical/mental
risk are registered with the Wellness
Center for continuous monitoring of
employee condition● Applicants have the right to choose
what job vacancy they want during
employee recruitment● Employee communication policy
established to facilitate open
channels of communication.
Employees can provide feedback
through the complaints hotline,
employee suggestion box and otherchannels● Employees● Groupsubsidiaries &Joint ventures

Subsidiary● Planning and implementation ofannual health promoting activities andeducation seminars● Employees● Groupsubsidiaries &Joint ventures

5 AgileInnovation● Establishment of safe and open
channels such as the complaints
mailbox, labor-management meetings,
and plant service hotline for employees
to express their opinions● Establishment of employee
communication policy to facilitate
open channels of communication● Continue to introduce companywide employee engagement
surveys to collect employee
feedback

Fact
Sheet

Appendix2023 Tragets● Hosting of
information
security
developmenttraining● 0 information
security
complaints● Organizationof healthpromotion
activities at eachsite

2023 AUO Sustainability Report

2023 Progress● 32 information
security educationand trainingclasses● No information
security
complaints

117

2024 Tragets● Hosting of
information
security
developmenttraining● 0 information
security
complaints● Health exams forall employees● Taiwanese sites
organized 52
health exams thatwere attended by
17,542 employees
for a total exam
rate of 97.6%● Organizationof healthpromotion
activities at eachsite

● 0 cases of related
complaints● 0 cases of related
complaints● 0 cases of related
complaints● Conduct
employeeengagement
survey at all
global sites● Exceed 81% global
coverage● 84% employee
engagement with
the Company● Conduct
employeeengagement
survey at all
global sites● Achieve 80%
employment
engagement● Hosted 47 direct
employee town
halls

● Achieve 80%
employment
engagement

CONTENTS

1 Business
Operation

Human
Rights Issue

2 Sustainable
Management

Subject of Special
Concern

Degreeof Risk● Employees
Freedom of
Assembly and
Association● Group Subsidiaries● Suppliers

Minor

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Mitigation Measure● Establishment of Club Management
Regulations to allow for the organizing
and management of clubs● Convening of regular labor-management
meetings● Contractors,
Outsourcing Businesses● Establishment of risk assessment toprocedure to identify all labor, ethical,
and environmental health & safety risks● Employees
Protectionof Labor
Conditions● Group Subsidiaries● Suppliers

Minor● Contractors,
Outsourcing Businesses● Establishment of employee
communication procedure andchannels to resolve employee issues ina timely manner● Establishment of RBA management
system to detect potential risks throughinternal and external audits● Adjust shift rosters in accordance withthe law to prevent excessive overtime
by employees, excessively short breaks
and similar problems● Employees
Employmentof Child Labor/
Juveniles● Group Subsidiaries● Suppliers● Contractors,
Outsourcing Businesses

Minor● Children/Juveniles● Employees
Nondiscrimination,
Diversity andInclusion● Group Subsidiaries● Suppliers● Contractors,
Outsourcing Businesses

Minor● Review of applicant details during
recruitment and start of work to verify
their age and nature of work
● Inclusion of relevant provisions withperiodical reviews in contractor andoutsourcing business contracts● Recruitment, employment, andadvancement are not restricted throughconditions not related to professional
skills (e.g. nationality, race, gender, age,political bias, physical disability)● Guarantee of job quotas for thephysically and mentally disabled● Physically or Mentally
Disabled Employees● Employees

Right to FamilyLife● Group Subsidiaries &Joint ventures● Provision of breastfeeding room andtime for lactating female employees● Suppliers● Employees may apply for unpaid
parental leave, maternity leave, andother types of leave to look after theirfamily or the needs of family members● Contractors,
Outsourcing Businesses● Lactating Female
Employees

Minor

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report118

Remediation Actions

2023 Tragets

2023 Progress

2024 Tragets● Managed in accordance with Work
Regulations and Club Management
Regulations● Conveningof quarterlylabormanagement
meetings● A total of
4 labormanagement
meetings
were held● Conveningof quarterlylabormanagement
meetings● 0 cases oflosses due tolabor disputes● In 2023,
there were 4
cases of labor
damages due
to complaints
over labor
conditions● 0 cases oflosses due tolabor disputes● No related
complaints● 0 complaints● No related
complaints● Host at least
1 event for
advocating
equity● Hosted a
total of 4 DEI
inclusivity
seminars● Host at least
1 event for
advocating
equity● 100%
completion
rate for transsite RBA audit● Completed
100% ofaudits withno related
defects● 100%
completion
rate for transsite RBA audit● Control risks through periodical
review and updating of company
rules in accordance with the law● Regular employee interviews tocollect employee feedback andissues of concern● Set deadlines for improvement
measures based on the ﬁndings of
RBA audits● Establishment of work hour
management policy and system,
management and control work
hours (including overtime), andissuing of system work hour alerts
to remind unit supervisors to adjust
the workload when necessary● Conduct RBA audit andinvestigation. For minor infractions,set deadline for corrective action
and offer compensation● Enhanced employee education on
diversity, inclusion, and equity● Strengthening of internal company
software and hardware facilities toprotect the rights of physically andmentally disabled employees● Lactating employees may not workovertime or night shifts. Lists for
employees that are pregnant, onmaternity leave, or still lactating areused to remind unit supervisors toadjust their workload● Establishment of breastfeeding rooms
and related facilities in accordancewith RBA guidelines

Note: Human rights mitigation measures are applicable to all AUO sites and Group subsidiaries. Disclosure is planned for the 2023 AUO Due Diligence Report on Human Rights.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

4.2 Talent Attraction & Development

AUO Talent Sustainability Strategy
An aging population and declining birth rate means businesses must work to ensure that they havethe people they need to all kinds of challenges. They must also ensure that such people possess thenecessary expertise and skills to continue solving the problems brought by ever-changing trends. To
realize our philosophy of talent sustainability, AUO launched the “ESG - TALENTS” to build fertile soil fortalent in three strategic dimensions and through seven key actions.
TargetCorporate Mission

AttitudeCore Values● Corporate Mission● Core Values

Acceptance● Employee Experience
Talent● Borderless TalentAcquisition &Employee Rotation

2023 AUO Sustainability Report

Ability

SystemSkillsGovernanceSociety | Expand Social Inﬂuence

AUO has supported the “TALENT in Taiwan” alliancelaunched by CommonWealth Learning in 2022. For
three consecutive years, we have joined forces with
the industry, government, and universities to build
a sustainable ecosphere for future talent.

119

Global Recruitment Policy

Youth Development
AUO works actively with universities and colleges to forge a sustainable talent pool. The coorganizing of industry courses, specialized seminar and corporate tours help to accelerate
the cultivation of talented youths and narrow the gap between theory and application. In
addition to providing students with a better understanding of the industry, AUO also offersa range of career experience activities such as the project-based “A+ Summer Internship”
and “A Pro Semester Internship” that assist students with accumulating experience andnetworking. The students also become AUO’s spokespeople on campus and a source of
future talent.

A+ Summer Internship Program

Sustainability`
Competitiveness

Extension

Appendix

Need & Care
Employee Experience

Engagement● Learning & Career
Development

Fact
Sheet

AUO has a global workforce of 36,745 people spread across locations in Asia, Americas,
and Europe. Under our biaxial transformation policy, AUO is focusing on talent in three
categories of innovation, including “R&D Innovation” talent focusing on pioneering display
technologies, “Data Innovation” talent for promoting digital transformation, and “CrossDomain Innovation” talent for identifying customer requirements, integration of softwareand f irmware, and delivery of total solutions. As part of the Company’s globalization
strategy, AUO has set up overseas R&D teams in the US and Japan. AUO continuously
recruites local talents to strength its global competitiveness.

4.2.1 Talent Strategy

Learning & Dev.

Subsidiary

Transformation
New Working Model● New Working Model

The A+ Summer Internship Program is now in its 20th year and has successfully
cultivated nearly 1,300 outstanding students. AUO not only provides students with
an opportunity to participate in actual projects but also use online learning throughthe GOLF (Gap of Learning and Field) program and tours of display technology
applications to enrich theirhands-on experience andunderstanding of the industry.
This year, AUO supported
the International Mentorship
Program at National Taiwan
University by providing foreign
students with opportunities forwork experience and applying
their skills. Through the collisionof different cultures, it brings
AUO more diverse and innovative
perspectives, also enhancing its
international competitiveness.

AUO x NTU International
Mentorship Program video

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthA Pro Semester Internship Program
AUO introduced the smart manufacturing semester internship program in 2019.
We partnered with universities and colleges to help students accumulate handson experience during their studies with an emphasis on project-based learning
goals; as of 2023, we have provided 89 project internship opportunities to students
at various universities. As part of the
AUO biaxial transformation strategy, theproject was formally renamed as A Pro
Semester Internship Program in 2024.
Program eligibility was also expanded
f rom smart manufacturing to include
talent in automotive and IT software. The
program offers more diverse internshipopportunities with four key features,
namely workplace experience, hands-on
experience, skills development, and clear
project goals.

5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability ReportIndustry-Acedemia Collaboration
The Center of Industry-Academia Collaboration was established in 2019 and has continued to partnerwith quality universities around the world to build local Industry-Academia-Research Ecosystems,
introduce talent, technology and business opportunities, and accelerate the realization of company
strategies. The Center not only promotes long-term, in-depth industry-acedemia collaboration but
also helps students connect with the industry. By providing opportunities for practical involvement inproject research and development, fostering the employability of young talents.

Center of Industry-Academia Collaboration Mechanism
Collaborationon technologies

Create business
opportunities

Center of IndustryAcademia Collaboration

AcademyAUO
Talent development

Mariia, a student from Ukraine
I am a double major in electrical engineering and optoelectronics and my internship was with a R&D unit at
AUO. This was my f irst internship in Taiwan. I thoughtthat language and professional ability might prove to
be a challenge, but thanks to the patient assistance andcommunication of my supervisor and colleagues at AUO,
I stopped feeling so nervous. Working in a foreign country
wasn’t as scary as I thought. I now feel I am part of the AUO
family and look forward to returning to AUO in the future.

120

Partner universities - 23(including 4 joint research centers)

2023 Achievements

Collaboration value - NTD 110 million
Collaborative projects - 108 projects

Joint Research Center

Talent Development Scholarship
The Talent Development Scholarship program was launched by AUO for current postgraduate students in order to cultivate outstanding talent and advanced R&D expertise.
AUO hopes to cultivate innovative talent that can make a seamless transition to theindustry. Since 2015, the AUO talent scholarship program has cultivated 53 outstanding
students f rom 13 universities including 18 PhD. students and 35 Master’s students. The
Talent Development Scholarship Program not only provides annual scholarships to alleviate
the f inancial burden of students but also enables them to concentrate more on theirstudies. AUO also offers internship opportunities to students, allowing them to engage
in project practicality at an early stage and develop workplace skills in advance, ensuring
immediate employment upon graduation.

AUO has partnered with four top universities to establish joint research centers. The centers promotecomplementary developments in theory and practice as well as the e exchange and transfer ofknowledge and technologies to cultivate high-end R&D talent for the industry.

Areas of
Collaboration

National Taiwan
University

National Taipei
University ofTechnology

National Yang
Ming Chiao Tung
University

National Cheng
Kung University

Research anddevelopment ofadvanced display,sensing, and AIoT
technologies

Smartmanufacturing
technologies andcommercialization

Digitaltransformation
technology

Research anddevelopment ofsmart healthcare,advanced displays,
and circular
economyCONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthAUO Partnership with University of Illinois Deﬁnes New Paradigm
for Industry-Acedemia Collaboration in North America
The Industry-Acedemia Collaboration Platform is working actively to connect with theresources of top universities around the world. In 2023, a memorandum of understanding was
signed with University of Illinois Urbana-Champaign(UIUC) in Chicago, USA. The collaboration will focus
on healthcare and automotive displays to accelerate
the development of smart applications and theircommercialization in North America. Collaborative
projects include the development of medical
product technologies, development of automotive
display product technologies, co-hosting of researchand innovation events, and f ield validation ofadvanced display systems. Collaboration on talent
will hopefully result in the sharing of resources withUIUC and the construction of a North Americanindustry-university-research ecosystem.

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report121

Gap of Learning & Field (GOLF)
Gap of Learning & Field (GOLF) founded by AUO, Compal, and Wistron has now joined the “TALENTin Taiwan” alliance. The alliance’s online platform provides training courses and internship places
to current students to realize its two key indicators of “Meaning and Value, Talent Growth.” First
established in 2020, GOLF now counts 51 well-known local companies and 56 universities amongits members. More than 400 online courses are available and the number of student accounts
have continued to grow at an exponential rate with 17,615 accounts registered on the platform sofar. Collaboration on interdisciplinary courses as launched in 2023 to further enrich the diversityof online teaching resources. The goal is to boost the digital competitiveness of young students
and progressively realize the GOLF vision of assisting students with making an early transition to
the industry. Industry-university collaboration on co-creation with the promotion of internships
and employment as its core purpose will lead about a mutually beneﬁcial sharing of university
and business resources, promote interdisciplinary exchange of industry knowledge, and open
new frontiers in education through sustainable development.

GOLF website

AUO Partners with University of Pennsylvania to Cultivate Global
Talent on Advanced Displays
AUO actively promote collaboration with international talent. Grants were secured from the
US National Science Foundation (NSF) through the National Taipei University of Technology
for 14 post-graduate students in related ﬁelds from 9 American universities to come to Taiwan.
There they took part in joint learning and exchanges with 16 post-graduate students fromthe optoelectronics institutes of Taipei University of Technology and Yang Ming Chiao Tung
University. AUO provided the Taiwanese and American post-graduate students with 2-day
program of learning and visits. They were not
only shown the latest display technologies andapplication scenarios but also given a tour of thedisplay internship workshop to learn about the
production process for displays. The exchange event
gave Taiwanese and American students an indepth understanding of Taiwanese optoelectronic
industry’s technical ability and industry leadership.
The expansion of US-Taiwan academic exchange
a n d c o l l a b o r a t i o n p a ve s t h e wa y f o r f u t u reinternational research collaboration and industry
networking.

Suzhou site- AUO Digital Sustainability Research Institute
AUO Digital Sustainability Research Institute launchedat end of 2023. The Research Institute connects leading
university academics, industry representatives, andsenior AUO expert consultants with 7 top faculties tojoint cultivate digitization talent for the future.

Collaboration on Interdisciplinary Courses

Emerging Smart Display
Technologies Education
Alliance
AUO partnered with the“Emerging Smart Display
Technologies Education
Alliance” to support a
Ministry of Education
program to strengthen
integrated cultivation ofinterdisciplinary talent on
optoelectronic applications.
A total of 10 programs
containing 53 well-resources
courses on smart display
sensing components,
processes, systems, audiovideo interactions andhuman-factor engineering,
3D image capture andmodeling, and visual optics
were introduced.
Statistics as of December 26, 2023.

IBM SkillsBuil

Just College

IBM was invited to becomea GOLF partner to provide
courses on emerging
technologies and workplace
specialties from IBM
SkillsBuild that can serve as
extended learning resources
for GOLF. More than
1,000 courses were madeavailable on topics such as
cybersecurity, data analysis,
cloud computing, and othertechnical disciplines. Skills
needed in the workplacesuch as design concepts
are also provided to support
university and college
students throughout Taiwan.

Just College, IC Broadcasting,and the Zhen Ding Education
Foundation co-produced 42
course videos on industrial
engineering management
licensed by GOLF. The
videos were hosted byProfessor Chen at National
Tsing Hua University, withleaders from benchmark
enterprises and hidden
champions invited to takepart in dialogs that expand
the scope of learning for
management theory andknowledge.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

122

4.2.2 Diversity & Inclusion
AUO strives to build a diverse, equal, and inclusive workplace culture, and provide a safe andhealthy workplace so that all employees are afforded equal opportunity for development, canmaximize their potential and creativity, and enhance their problem-solving skills. In this way,
AUO hopes to strengthen employee engagement and loyalty, built up their sense of belonging,and forge an inclusive environment in which employees and the company can grow together.

Advocacy by senior
executives

Global DEI Census

Cognitive

Awareness

Insight

Shaping

Advocacy

Environmental

Initiatives

RegimePeriodical
announcements

Shaping of DEI Culture
AUO knows that the cultivation of diversif ied talent is crucial to sustainable corporate
development. The ideals of Diversity, Equity and Inclusion (DEI) are therefore imbued in our
corporate culture and enterprises. Diversiﬁed talent have been introduced to our global locations
along with the creation of international stages for expanding employees’ horizons and careers.
Differences in gender, race, language, and religion do not affect the employment, remuneration,and promotion prospects of our employees. An atmosphere of openness and tolerance thatencourages employees to respect their differences and learn from each other helps to build
team cohesion. To promote DEI culture on a long-term basis, the DEI Month series of activities
was hosted for the ﬁrst time in 2023 in conjunction with Women’s Day. This served to expand
the inﬂuence of DEI through the four aspects of cognitive insights, awareness shaping, advocacy
initiative, and optimization of environment and systems.

Women in Scienceseminars
Feast of Life

Crafting of friendly
spaces
Better-thanstatutory beneﬁts
Diverse clubs andsupport groups

Cognitive Insight

Awareness Shaping

The DEI Month campaign featured the first DEI character survey to obtain an in-depth
understanding of DEI literacy and identification within AUO. The survey took the formof a pseudo psychology test that made it more interesting to encourage employee
participation. More than 2,000 employees took part in the survey and we found that 48%of the respondents had heard of the DEI concept before. This was higher than the general
population(Note). The top three DEI issues of concern for employees were gender, race,
and age with 88% employees indicating that they supported the promotion of DEI-related
policies and initiatives by the Company.

To demonstrate AUO’s commitment to promoting a culture of diversity and inclusion, AUO
invited senior executives and employees to ﬁlm a video to declare their support. The DEI
culture video was played at all AUO sites and friendly workplace messages embedded inwork areas to communicate the DEI culture to every corner of AUO. In addition to culturalrendering in the ﬁeld, the DEI Classroom was also launched through the e-newsletter tocoverage educational content on gender equality issues in society and current events.
These all encouraged employees to embrace diversity and leave stereotyping behind by
starting with respecting each other.

Note: According to the Womany DEI survey, 37% of respondents had heard of the DEI concept.

AUO DEI Culture video

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1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthAdvocacy Initiatives

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

123

Environmental Regime

Women in Science: Gender Equality Seminars
Gender equality has been a key issue in the male-dominated technology industry for many
years. At AUO however, there are no gender-based differences in the cultivation of talent.
In addition to offering a gender equal system and workplace, awareness promotion is
employed to reduce prejudices based on gender stereotypes. A DEI seminar was held with
Prof. Chen from the Department of Computer Science & Information Engineering at NTU
and winner of the Taiwan Outstanding Women in Science award, invited to speak on the
topic of AI gender prejudices from the perspective of ChatGPT. Prof. Chen not only shared
her insights on AI technology but also encouraged all employees to not be held back by
their gender, embrace their own uniqueness, and achieve a balance between work andlife. More than 800 employees took part in the seminar.

AUO has installed diversity and gender-friendly toilets in the workplace to communicate
the meaning of diversity and inclusivity at work. In terms of employee benef its, AUO
exceeds statutory requirements by offering volunteering leave, engagement leave,
prenatal exam leave, prenatal exam for partners, and paternity leave. Childbirth andchildcare stipends are offered to employees as well to celebrate a new stage in their lives.

Unpaid Parental Leave or Leave of Absence
AUO accommodates employees undergoing a major change in their role or experiencea major accident. Employees that have been with the company for six months become
eligible for unpaid parental leave. They may also apply for an unpaid leave of absence due
to military service, serious injury or illness, taking care of a relative of ﬁrst-degree, or otherpersonal reasons. AUO will automatically contact employees to check on how they have
fared 90 days before their unpaid leave is scheduled to expire and arrange or them toreturn to their original unit and position. Related training courses are also provided to help
employees re-adapt to the workplace. In 2023, the retention rate for employees returningfrom unpaid parental leave was 86% for men and 87% for women.

Diversity Club Activities

Feast of Life on Diversity Issues
The Feast of Life is held by AUO every year with speakers from different ﬁelds invited toshare their own stories. In 2023, the Polar Light Percussion Group, “Godmother of Standup” Ponpon Yellow and others were invited to support the DEI culture through the sharing
of topics on diversity. The direct support for disabled performing arts group and women’s
rights activists served to expand employee interest in diversity through soft events.

The Polar Light Percussion Group’s performanceof inspiring musical stanzas with percussive
instruments showed that their passion for music
was undimmed by their physical and mental
constraints

AUO has diverse clubs aroundthe world including sports, artsand culture, and philanthropy.
Employees are encouraged
to enrich their lives outside ofwork. We established 9 migrant
wo rke r cl u b s to e n co u ra g e
migrant workers to socialize
with each other. We also provide
community resources to help
them settle into their life andwork in Taiwan more quickly.

The basketball tournament is an annual highlight of the
migrant worker dormitories.

Ponpon Yellow’s humorous take on her
experience as a female stand-up comedian tohighlight gender stereotypes

The Dormitory Bible Study Choir opened the Christmas
mass with an angelic rendition of hymns

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In keeping with our corporate core values of caring for society and putting people ﬁrst, AUO offers equal recruitment anddiverse job opportunities to disadvantaged groups. We have actively cooperated with the government’s employment policy
for the physically and mentally disabled since 2008. Jobs suitable for disabled people such as panel repairs and access
control were inventoried and re-designed. Suitable aids were also introduced to enhance the ability of disabled employees
to perform their job. AUO is continuing to exceed the annual quota on disabled employees every year. In 2021, we wererecognized by Hsinchu City as an Outstanding Enterprise for the Recruitment of People with Disabilities for exceeding thequota on hiring of disabled people for the third straight year.

AUO provides migrant workers with total support during their career including
recruitment and employment, training and development, life adaptation,
cultural exchange, and healthcare. Foreign workers are provided with a friendly
environment for applying their diverse talents, equal opportunity for engagement,
as well as liberty and inclusion.

Zero Advance Payments for Peace ofMind in Employment

AUO encourages self-development by migrant workers.
Balanced development of work and life is emphasized.
As migrant workers are engaged in shift work and havetransportation constraints, we also invite external instructors
to conduct dedicated classes on-site. For work, exceptionalmigrant workers undergo training for special stations suchas cranes and hoists. For life skills, custom Chinese classes
are offered in physical or online classes. The contributionsof outstanding migrant workers are recognized by AUO andnominated for external awards to obtain material accolades.
A total of 4 outstanding migrant workers were recognizedby Taoyuan City in 2023.

2023 AUO Sustainability Report0

Advance
Payments

Employment ratio

217

207

203

199

190

231

220

232

226

234

106.5%

106.3%

114.3%

113.6%

123.2%

2019

2020

2021

2022

2023

200

Life Adaptation with Caring Service
AUO takes great pains to cultivate an inclusive
living circle for migrant workers to help themsettle into a new country. For communication,
dedicated bilingual personnel proﬁcient in theirmother language and English are assigned toprovide their care and support. To look after
the lifestyle needs of migrant workers, we notoffer meals in the style of their home countries
on a periodic basis but have also continued to
optimize our international store services since2022 by increasing the range of merchandise
on offer and providing a better shopping
experience. Other recreational and leisurefacilities such as prayer rooms, dining rooms,
and sports centers are available to promote
networking and relaxation.

Cultural Exchange,
Empathy and Inclusion
A diverse and inclusive working environment isimportant to AUO. We also communicate thismindset in our New Year, Mid-Autumn, andChristmas festivities to give migrant workers
a better understanding of Taiwanese culture,and how holidays are a time for people to greet
and meet with each other. The “Lunar New
Year’s Eve Banquet” theme was used to invite
migrant workers to share their homeland
cuisin e an d experien ce th e well-wish esof the Lunar New Year; “Pomelo Painting”
unleashed people’s creativity as they spent
Mid-Autumn Festival together; the creation oforiginal sustainable artworks for the “Creative
Christmas Tree” demonstrated the Company’s
support of plastic reduction and brought
about a festive atmosphere co-created by both
local and migrant workers.

Healthcare from the Heart

15

obtained
professional
technician
certiﬁcation

12

obtained Chinese
languagecertiﬁcation

124

250

150

Migrant Worker Support

Language Learning and Professional
Certiﬁcation

Appendix

Statutory employment quota
Actual number employed

Hiring of Disabled Employees

AUO strengthened protection for migrant workers’ freedomof employment by instituting the “Zero Fees and Advance
Payments Policy for Migrant Workers.” As of 2019, AUO paid
for all migrant workers’ fees from before the start of workand after their arrival in Taiwan. Fees from before start ofwork include foreign broker commissions and government
processing fees. Fees after arrival in Taiwan include domestic
service charges and fees. The zero advancement of overseas
fees policy was introduced by AUO in 2022 to ensure thatabsolutely no advance payments are required of migrant
workers before they arrive in Taiwan. This is to prevent theimposition of economic burdens from Taiwan entry fees onoverseas job seekers.

Fact
Sheet

Subsidiary

AUO treats the protection of employee health as our duty and responsibility. Dedicated nursing personnel
are assigned to provide migrant workers with advice on seeking treatment and health education. We also
provide shuttle and companion services for seeking medical treatment. In addition to annual health exams
for all employees, we also provide
health exams for special operations
and f ree on-site f ree vaccinations.
AUO is continuing to monitor thedomestic and international situation
on diseases such as Monkey Pox
and Dengue Fever after COVID-19
subsided in 2023. Professional cleaners
are regularly engaged to clean anddisinfect the living areas on-site
to ensure sound living conditions.
Epidemic restrictions have now been
lifted by AUO dormitories throughout
Small groups for Chinese
Lunar New Year event invited
language courses to improvemigrant workers to share theTaiwan are continuing to exceed
thelanguage
proficiency
ofcuisine of their homeland andstatutory requirements on living spacemigrant workers.
spend the Lunar New Yearby maintaining the policy of assigning
together in Taiwan.
four people per room.

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2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report

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Women in Leadership
Gender equity and fairness in career development are important to AUO. We strive to foster a workplace where every employee can unleash their talents and realize their boundless potential. In 2023,
women accounted for 34.2% of the AUO workforce and 28.0% of global management, resulting in AUO’s inclusion in the Bloomberg Gender Equality Index for the sixth consecutive year. In addition to
our continued support for women leaders, AUO is also cultivating women in science and technology on campus to build an equitable and inclusive environment for the industry.

Creating Career Opportunities

Cultivation of Women in Science and Technology

AUO believes that the diversif ication of leadership roles will provide the business with multi-dimensional
perspectives and voices that lead to better decision-making and fulﬁllment of needs and expectations. In 2023,
AUO began assisting each unit with tracking the gender ratio of managers and establishing equitable channels
for career development through the quarterly Human Resources Council. We respect and support gender careerdevelopment through material actions and continue to provide talented women with a stage for the pursuitof career development. A target was also set for women to account for 10% of senior executives, 15% of middlemanagement, and 30% of junior and overall management positions by 2026.

AUO employs internships, competitions, online industry courses, A+
Internship, A Pro Semester Internship, and Gap of Learning and Field(GOLF) to cultivate outstanding women in science and technology
on campus, and to assist students with making the transition to theworkplace. AUO is a long-term partner of “Girls in CyberSecurity (GiCS).”
We provide internship opportunities to student that excel during
competitions and encourage women to enter the information security
technology ﬁeld.

Ratio of Women in Each Category

Management

2023 Progress

2026 Targets

Senior Management (Note 1)

8.8%

10%

Middle Management (Note 2)

13.0%

15%

Junior Management (Note 3)

29.1%

30%

Overall Management

28.0%

30%

Overall Workforce

34.2%

34%

Revenue Generation Unit (Note 4)

25.7%

25%

A+ Summer Internship
Program
A Pro Semester
Internship Program

61%

Note 1: Senior management are managers in the twogrades below CEO.

Note 3: Jun i or man a gem en t are man a gers wh ooversee non-management employees directly.

Note 2: Middle management are managers three tofour grades down from the CEO.

Note 4: Revenue generation units include business
units, technology R&D units, and production
units.

arewomen

Gap of Learning & Field(GOLF) - AUO College

49%

are
women

4.2.3 Remuneration & Beneﬁts
Competitive remuneration system
Proactive Setting of Remuneration
1.

The remuneration of new recruits are determined by their experience, education,
professional knowledge and skills, and industry seniority.

2.

AUO takes part in annual international market salary surveys to ensure our competitivenessin the market; salary adjustments are also made based on prevailing market rates andindividual performance.

3.

Continued inclusion as a constituent stock in the High Compensation 100 Index.

4.

According MOPS data, the median salary of AUO employees in non-management roles was
ranked in the top 25% of TWSE/TPEx-listed companies from the opto-electronics industry.

Performanceoriented Rewards
Flexible short-term incentive
programs based on company
re s u l t s , tea m p e r fo rm a n ce ,and individual performance/r o l e a r e d e s i g n e d to s h a r e
th e company’ s resul t s wit hemployees

Long-term Incentives toStrengthen Retention
Diverse long-term incentive programs have beendevised to boost competitiveness in terms of talentsustainability by strengthen the retention of key talentso they can co-create results with the Company.
1.

Retention bonus is paid to direct employees forevery full year of employment

2.

Long-term stock option award program is offered
for indirect employees based on organizational andindividual performance

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2 Sustainable
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3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

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Diverse Beneﬁt Plans
Multi-Dimensional Insurance Plans
Provide Employees with A Worry-free Working
Environment
In addition to injury/medical insurance, accidents while riding
on public transport was also added to insurance coverage in2024 to encourage employees to take public transport andreduce their carbon footprint

Companyfunded Group
Insurance

Partnering with Employees to Look After Their Families
Provision of quality and affordable self-funded group insurance
policy that is used by nearly 50% of employees’ dependents

Material Assistance for Key Stages During Career
Unpaid Leave/
Expatriate
Coverage

Ensure continued group insurance coverage for
employees on injury, sickness or unpaid leave
Dedicated overseas business travel insurance plan forbusiness trips and expatriate assignments

Dependents
Insurance

Provision of Timely Service
On-siteServiceOn-site representative from insurance company toprovide timely consultation and claims services

Pension Scheme
Early Adopter of Employee Welfare Trust Plan

Statutory Contributions to Ensure Proper Provision of Pension FundAUO launched the “Employee Stock Ownership Trust (ESOT)” in 2010 by providing employeeswith incentives equal to 100% - 150% of their stock. By encouraging employees to get in the habitof saving, we help them realize their short, medium and long-term ﬁnancial plans, and prepare inadvance for retirement. The ESOT has gained strong support among most employees since it wasﬁrst created with employee participation exceeding 80% at the end of 2023.

For employees covered by the old pension system, AUO makes contributions equal to 2% of
their monthly salary to the Pension Preparatory Fund account at Bank of Taiwan. Actuaries are
retained every year to prepare an actuarial report to ensure that the pension rights of employees
are adequately provided for. For employees covered by the new pension system, a monthly
contribution equal to 6% of their salary is deposited into their personal pension account with the
Bureau of Labor Insurance based on their pension scale.

Comprehensive Employee Care
Heart-Warming Blessings and Care

Employee Subsidies
and Beneﬁts
AUO has design ed different types ofstipends tailored to employee changes intheir life including childbirth, childcare,marriage, and funerals. Partner merchants
are also used to take care of employees
and their families in everyday life. Partnerchildcare center for example help
employees with looking after their children.

Better-than-Statutory Leave

Childcare Stipend
Most AUO employees have started theirown families. To support the government
policy to boost the birth rate, AUO beganoffering employees an annual stipend of
NTD 3,600 for every child between the ageof 2 and 6. In addition to personal subsidies,
we also organize special activities including
club activities, partner merchants, andspor ts seasons to meet the needs of
employees of all age groups.

For employees entering a new phase in their lives, AUO does its best to accommodate and celebrate
the change. We also encourage employees to participate in sustainability activities. A combination of
better-than-statutory paid leave entitlements and hybrid working model create a friendly workplace.
Item

MeasurePrenatal exam leave

Statutory requirement is for 7 days of paid leave. We exceed this byproviding 10 days of paid prenatal exam leave for each pregnancy.

Prenatal exam
companion andpaternity leave

Statutory requirement is for 7 days of paid leave. We exceed this byproviding spouses with 10 days of paid prenatal exam companion andpaternity leave for each pregnancy.

Engagement leave

Employees getting engaged are provided with 1 day of paid engagement
leave.

Volunteering leave

Employees are offered 1 day of paid volunteering leave each year toencourage their participation in the Group’s volunteer activities.

Hybrid Ofﬁce

Employees are offered the option of working remotely and ﬂex-time.

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Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

127

4.2.4 Happy Workplaces
AUO proposed the “WE CARE Program” to promote workplace
welfare based on the spirit of a people-centric approach andholistic care. The Program aims to foster a safe, healthy, andfriendly 5-star happy workplace. “WE” in WE CARE represents“We at AUO and Wellness.” CARE represents the four aspectsof Culture, Activities, Renew, and Environment. The Program
promotes the goal of physical, mental, and spiritual wellbeing
and balance for all AUOers. At the same time, we also hope tospread the WE CARE mission to our stakeholders and workwith our value chain partners to safeguard health and safety
in happy workplaces.

Exceed statutory requirements
to foster an inclusive culture
for holistic, safety, physical,
mental and spiritual balanceIntelligent systems and digital
tools were used to continue
delivering employee beneﬁts in
response to the challenges of
COVID-19 as well as the trends
in mobility and AI technology

CultureActivity

CultureShapingSpecialty
Activities

Hosting of art, cultural andhealth promoting activities todeliver total employee care

WE CARE

Renew

Environment

Innovative
Actions

Environmental
DesignUpgrading facilities
throughout the Company
from the employee experience
perspective

CultureLabor-Management Relations Management
AUO practices open and transparent labor-management communications by enforcing constructive, two-way communication mechanisms. Labor unions have been established in Suzhou, Xiamen,
Kunshan, and Singapore. For employees “not in a union or not covered by collective bargaining agreements” and “not at a unionized operating location”, their working conditions and terms of
employment are determined in accordance with the requirements of local labor legislation, labor contracts, work rules, or statutory labor-management bargaining channels. In Taiwan, the “Regulations
for Implementing Labor-Management Meeting” has been formulated based on Article 83 of the Labor Standards Act and policies announced by the Ministry of Interior to ensure that labor-management
conferences are held on a quarterly basis at each plant for negotiation and discussion of labor-related issues. All employees can make recommendations to the Company through labor and management
representatives. The quarterly labor-management meetings provide labor representatives with a clear picture of the Company’s latest material business information, human resources situation, andlabor-related communication topics. These promote the establishment of harmonious labor-management relations and cooperation between labor and management.

Material Topics

Employee engagement in the 4 aspects

Ratio of employees that felt happy and were willing to recommend theCompany to other people, Q12 annual survey on employee engagement with
the Company and their work
90

84%

Q12 Employee Engagement Survey
The general indicators f rom the Q12 Employee Engagement Survey is used by AUO to detect the
global organizational atmosphere every year in order to promote a friendly workplace, understandwhat employees are thinking and ultimately, enhance employee engagement. In 2023, more than
29,500 direct and indirect employees at our global sites filled out the survey for a total coverage of
81%. The survey results were analyzed in terms of age, gender, and position. Employee engagementin the four aspects of basic needs, management support, teamwork, and learning & growth averaged
84%. Besides, 88% of employees who experience happiness and are willing to recommend others
to participate. Data f rom the survey is also provided by AUO to each site and the relevant units.
Measures are taken to strengthen weaknesses such as employee experience, education and training,and department communications. These improvements are also tracked to provide a reference for
optimizations to organization management and the company’s human resources policy.
Note: Coverage rate is the response rate

81%
80

75%
72%

72%

2019

2020

70

60

2021

2022

2023

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2 Sustainable
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Open Channels of Communication

Digital Welfare Communication Platform

AUO works actively to establish a positive relationship with employees. Employees can provide their feedback
through a variety of channels. They can also expect to be heard and receive a response. The case closure rate
in 2023 was 100%. Employee relations specialist are stationed at each site and random telephone surveys are
conducted to check on employees’ physical and mental well-being. AUO re-activated the direct employee support
interview program after COVID-19. These were conducted in group sessions and around 400 direct employees
at Taiwanese sites took part in 47 interview sessions. Problems reported included routine unit management,
education and training resources, company’s benef it plans, and work areas. It is hoped that the in-person
communication meetings will ensure that employees are heard, strengthen their bond with AUO, and bring about
constructive developments in the management communication mechanism.

AUO launched the AUO Club to promote a f riendly communication andinteraction culture. In addition to responding to employee questions in atimely manner, event information are also pushed out to employees throughLINE, a popular service. This ensures that company messages can be delivered
to employees right away to foster a positive atmosphere for interactions
and communication. More than 13,600 employees signed during 2023 inconjunction with various internal company events. We will continue to expand
the user base, optimize the digital communication and interaction experience,
provide more exposure for beﬁts and foster a friendly communication culture.

Activities
Feast of Life
Feast of Life is one of AUO’s key soft activities each year. Speakers from different ﬁelds are invited to inspire
employees with their positivity in work and life. Opportunities are offered every year for a spiritual recharge atwork. The four main themes for Feast of Life seminars are contemporary art, social care, cultural revitalization,
and Think Big. In 2023, the theme of “Passion, Determination, Breaking Boundaries” was chosen to reﬂect
AUO’s commitment to globalization, group organization and market-orientation. A total of 25 physicalseminars were hosted to encourage employees to surpass their own limits. At the same time, a podcast
program was launched to take advantage of post-pandemic interest in overseas travel. AUOers were invited
to share their exciting stores from overseas and hear their way around the world. More than 1,000 people took
part in the podcast program and a total of 3,000 people attended the physical seminars.

Godmother of TaiwaneseOpera - Sun Tsui-Feng

Culturalrevitalization

THINK BIGOne Song Orchestra | Yu Tzu-yu |Ten-Drum Art Percussion Group

3 sessions - Cultural baptism
683 AUOer took part

Passion - Determination Breaking Boundaries
Prince of the Forest Chang Tai-Shan

8 sites connected together
in inspiration

434 AUOer participated

Funny No Problem’s improvised short playon the workplace kept people laughing andmade for a relaxing afternoon.

Polar Light Percussion Group |Funny No Problem

AUO 2023
Feast ofLife

5 sets - Arts and cultural groups
1, 337 AUOers took partContemporary
Art

Only a free heart cansurpass the limits
Rethink - Jason Huang
Comedy Girls Ponpon Yellow

Social Care

2 main topics of concern(plastic reduction, gender equality)
546 AUOer participated

Ten-Drum At Percussion Group not only
gave a heart-pounding live performance but
also engaged with employees to promote
the Ten-Drum culture

The podcast program “Go Boldly
Forth and Let the World In” invited
5 employees to talk about theiroverseas travels and how they
demonstrated the AUOer spirit ofbreaking boundaries. The highlightof the show was the host Patricio
Yu’s interview CEO Frank Ko. Frankt a l ke d a b o u t h i s ex p e r i e n ce s
studying and working overseas,then encouraged employees tokeep an open mind, expand theirhorizons, and join the AUO in
moving to the market.

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2 Sustainable
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3 Environmental
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4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Rich Club Activities

AUO Sports Season

AUO encourages employees to form their own clubs andcultivate hobbies outside of work. Taiwan sites host jointclub exhibitions every year for recruiting new members andsharing their accomplishments during the year. A physicaljoint exhibition was hosted at the end of 2023 with plastic
reduction and Christmas carnival as the main themes. A
total of 57 clubs took part by putting on spectacular club
performances and exhibitions at AUO sites throughout
Taiwan. Plastic reduction awareness displays were also set upon the day so that employees can practice sustainability ineveryday life. These included DIY craft exhibits, concerts bymusical clubs, games and interactive experiences, tastings,
and movie recommendations. The club exhibitions andperformances not only created a heart-warming and festive
atmosphere for the end of the year but also served as acontinuation of environmental education promotion.

The 2023 AUO Sports Season was combined with the“Be the ONE! team AUO” Sports Carnival to launch aseries of physical and online events that attracted 2,703
participants. The ﬁrst event was the opening ceremony
featuring eight regions. Employees were invited to takepart in the creative road race while demonstrating theirteam’s innovativeness and cohesion. Next came thecompetition tour that served as a warm-up for the sports
carnival. Warm-up and selection competitions were
held at all sites throughout Taiwan so that employees
can experience the fun of sports for themselves. Online
activities included the sports diary, sports classroom, MVP
prediction and sports selﬁes. These promoted a sporting
atmosphere and were well-received by employees.

AUO“Be the ONE! team AUO”Sports Carnival

Clubs host exciting joint exhibition
for “Christmas Carnival”

The Sports Day was held by AUO again after f ive years withspirit of “Be the One! Team AUO” as the main theme. The event
represented how the globalization and group structure of AUO
means everyone is on the same team. More than 8,279 AUOers
and their families gathered together for the sports carnival in ashow of the teams’ passion, vitality, and rapport. In addition toindividual and team competitions, family events, and carnival
foods, the sustainability principle was also incorporated into
the sports carnival through sports clothing made from recycled
PET bottles, digital registration and payment to eliminate paper
waste, discounts for bringing your own utensils and circularutensil rentals, plastic reduction exhibition and environmental
education challenge, and trophies made f rom recycled waste
wood. The sports carnival was therefore not just a competition
but also a medium for promoting the sustainability philosophy,
and leading by example in inclusiveness.

Renew
Intelligent Healthcare
AUO has built a total smart health risk and care platformto provide personalized health indicator trends. Data fromhealth exams is used to categorize employee health risks
and provide one-to-one healthcare measures and resources.
The system utilizes AI technology to identify high-risk groups
based on employees’ health exam data, work hours, andhealth surveys. For high-risk groups, data applications andintelligent management system are integrated to activate
the “Star Catcher Program.” When an employee’s healthresults them in being marked with a star, nursing personnel
interviews the employee to assist with improving their
physical and mental wellbeing. Platform functions include:

Environment
Wellness Center
The inf irmary is called Wellness Center to shake off old
stereotypes on company inﬁrmaries to reﬂect its mission of
preventive medicine and promotion of health and vitality.

Fitness Center
AUO Sports Day creates fun for
AUOersEnvironmental education
challenge to promotesustainability philosophy

To encourage employees to exercise regularly, ﬁtness centersand sports clubs have established at each site to provide
comprehensive sporting facilities and a diverse range ofsporting options. Peer support and a supportive atmosphereare used to create a total employee health solution.

129

Opening Ceremony featured teams
from the eight regions cheering
and waving their ﬂags as the sacred
sporting ﬂame of 2023 was lit.

Employee’s swipe-in/swipe-out records atthe site are used to establish their amount ofovertime and list them for tracking.

Maternal healthcare program for pregnant
and lactating mothers can be activatedand personnel assigned to assess/discuss
the situation. The health of the pregnant
employee is checked so that adjustments
can be made to their workload.

Employees with cardiovascular disease areprovided with support and reminders to
reduce their health hazards.

01

02

03

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130

4.3 Talent Development
Employee growth and development is important to AUO. On top of enhancing the professional ability of employees for continued employability through the provision of holistic, high-quality and diverse
education opportunities, AUO also upholds our vision of international alignment by integrating the strategic direction of the organization with career development roadmaps tailored to employee
needs. Internal teaching resources are used to promote the AUO value transformation through the enhancement of technical ability, leadership, and execution skills. To practice our philosophy of social
inclusion and growth, training resources are also shared externally to expand their impact and cultivate industry talent.

Average hours oflearning for indirect
employees

78.5 hours

Average training costs
for indirect employees
NTD

3,901

AUO Wins Asia Responsible Enterprise Award (AREA) for Investment in People
AUO is continuing to realize talent sustainability through talent transformation in the face of the global
trend on digital transformation, declining birth rates, and our internal strategy of biaxial transformation. The“ESG-TALENTS” strategy is employed to establish fertile soil for employees to realize their potential and join
the business in sustainable development. At the 2023 Asian Responsible Enterprise Awards (AREA), AUO wasrecognized with the award for “Investment in People” from a ﬁeld of 378 entries that came from more than260 countries in 19 Asian countries.

4.3.1 AUO University
AUO University focuses on the cultivation and development of talent for supporting the company
strategy of biaxial transformation. Guided by its mission of cultivating talented all-rounders and business
manages, AUO University provides AUOers with a diverse range of comprehensive in-service training andself-guided learning channels. AUO University consists of the College of Science, College of Engineering,
College of Leadership, College of Liberal Arts, College of Future, College of ESG, College of Business. The
seven colleges devise training roadmaps based on their target talent to provide training courses on
general research and innovation, smart manufacturing. leadership, general education and specialization,
future technologies, sustainable development, business management and marketing. Each department
also sets up its own Training Executive Committee (TEC) responsible for the implementing professional
training within the department. Each TEC also develops its own training roadmap to assist employeeswith enhancing their professional knowledge and skills. To ensure the effective implementationof education and training management strategy, the Academic Affairs Center of AUO University
convenes education and training meetings at regular intervals to review the implementation status
and performance metrics for all training. Measures are taken to improve and optimize each course
for assurance of outcomes and quality. More than 6,000 courses were conducted during 2023. The
AUO University is also used by AUO as a platform for the establishment of the Center of Indyustry
Academia Collaboration and its integration with our transformation strategy. The Indyustry- academia
collaboration roadmap of each college is used to establish requirements for technological development
and cooperation. These are then matched to the extensive resources of higher education to boost theliquidity value of Indyustry-academia knowledge and skills.

Average course
satisfaction for the year

9.6

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report131

Training Roadmap
The AUO University tailors the focus of talent training and developments in organizational culture to the AUO’s business strategy and mission goals. In response to developments in the smart ﬁeld
ecosystem, AUO assists employees with identifying market trends and new business opportunities; to support the development of overseas markets and our global strategy, AUO is also strengthening
its cultivation of internationalized talent; promotion of digital learning and innovative applications is used to help employees enhance their productivity, encourage teamwork and communication, andsupport Company efforts to accelerate the pace of value transformation.

AUO Teachers’Day - Learning is Inﬁnite

Number of internal instructors at AUO

AUO believes that to teach is to learn. We are therefore
continuing to cultivate experts in different ﬁelds in each unit
and cultivate a co-learning environment. The AUO University
has trained nearly 5,000 internal instructors so far and they
now teach around 70% of all courses. Teacher’s Day activities
are held by the AUO University every year to acknowledge
and thank these elite instructors and course experts fortheir contribution. The theme for 2023 Teachers’ Day was“Strengthening Teaching Power, Learning is Inf inite.” In theseminar, voice coach was invited to give employees an indepth look at speaking techniques. A more charismatic
speaking voice helps instructors strengthen their teaching
power. AUO hopes that all instructors can uphold the spiritof “co-creation and co-learning” at AUO University and work
together to realize the goal of teaching transformation.

4,950

5,000
4,302

4,500

4,047

4,000
3,500
3,000
2,500

3,177
2,808

2019

2020

2021

2022

2023

Evaluating the Business Beneﬁts of Employee Development
AUO sets course performance evaluations and completion mechanisms based on the learning objectives of courses. The four levels of training evaluation from the Kirkpatrick Model are used to evaluate
and verify the effectiveness of training in terms of Reaction (survey metrics), Learning (test results), Behavior (practical report), and Results (project outcome). In 2023, average satisfaction with AUO
University courses was 9.6 (out of 10). Most of the basic and advanced specialization courses reached the Learning and Behavior levels to have a positive effect on the business interests of the Company.

Level 1

Level 2

Level 3

Level 4

Reaction

Learning

Behavior

ResultMeaning

Trainee satisfaction with training after
the course including feedback on overallsatisfaction with course content andinstruction

Measurement of trainee comprehension
and mastery of the knowledge beingtaught with effectiveness of learning
generally measured through testing

Examination of trainee ability to apply
the knowledge and skills learned during
training to measure actual effectiveness of
training

How investment in employee training
and development can contribute to thebusiness performance of the organization
can analyzed through monetary/nonmonetary quantitative measurements

Indicators

Average satisfaction with AUO University
coursesExamination pass or certiﬁcation rate

Completeness of practical report after
training

Contribution of employee training anddevelopment program to businessperformance

CONTENTS

1 Business
Operation

Employee
Development
Case 12 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Programmable Logic
Controller Development
Training Project

Employee
Development
Case 2

Project Course

Programmable Logic Controller (PLC) Development Training

Content

The promotion of automation control at the internship workshop includes
learning about the PLC hardware architecture and programming.
Trainee also practice with simulation software to learn how about theanalysis and simulation of PLC designs and applications. The cultivationof professional talent in automation control lays the core foundation for
smart manufacturing. Trainee learn how to carry out projects by applying
the knowledge and skills they learned while also improving productivity
and production yield.

Content

0.6%

Percentage of
total workforce

Percentage of
total workforce

L1 Reaction
Assessment● Average course satisfaction was 9.67 (out of 10)

L2 Learning
Assessment● 100% qualiﬁcation rate after completion of training. Average testscore was 97.8

L3 Behavior
Assessment● 100% completion of practical report after training

With the PLC development course as an example

With the PLC Development Course as an example

With the PLC Development Course as an example

Quantiﬁcation of contribution to business performance from investment
in employee training and development program: Total beneﬁts were inexcess of NTD 1.4 million

Project Course● Savings in use of operator man-hours translated to ﬁnancial savings inexcess of NTD 80,000
With the PLC Development Course as an example

2023 AUO Sustainability Report132

Systematic Improvement
Program
Systematic Improvement Program (SIP)

to promote SIP aimed at continued cultivation of employees’ problemsolving and continuous improvement ability. Engineers and technicians
were invited to use the DMAIC(Note) logic system to engage in problem
solving. The establishment of a common lexicon throughout the Company
will facilitate the realization of Company or departmental targets.

70%

L1 Reaction
Assessment● Average course satisfaction was 9.51 (out of 10)

L2 Learning
Assessment● Average test score was 96. 88% qualiﬁcation rate after training

L3 Behavior
Assessment

With SIP - Problem Analysis/Solving Procedure in Practice and Application
Course as an example

With SIP - Problem Analysis/Solving Procedure in Practice and Application
Course as an example● 100% completion of practical report after training
With SIP - Problem Analysis/Solving Procedure in Practice and Application
Course as an example, based on judging of site competition/preliminarycompetition/quarterﬁnals/ﬁnals

Quantiﬁcation of contribution to business performance from investment
in employee training and development program:● Improvement to PS CPD scrapping: Average PS OEE (Overall
Equipment Effectiveness) LOSS reduced from 2.1% to 1%.

● In-house modiﬁcation of machinery translated to ﬁnancial savings inexcess of NTD 210,000● Improvement to broken panel scrapping and processing times/costs
translated to ﬁnancial savings of NTD 130,000

Appendix

To continue strengthening quality and competitiveness, AUO is continuing● Savings in use of photo-resist dilution agent translated to ﬁnancial
savings in excess of NTD 1 million

L4 Results
Assessment

Fact
Sheet

Subsidiary● Improvement to percentage of LC Margin anomalies saw percentage
of anomalies reduced from 1.8% to 0%, an improvement of 100%.

L4 Results
Assessment● 100% improvement to anomalies from lit pixels in the light area of Mini
LED backlight modules. Incidence of anomalies reduced to 100%.
● Improvement to Array T1-M1-Defect scrapping rate. Average scrapping
ratio was reduced from 0.11% to 0.06% after improvements wereintroduced.
● Realized the goal of reducing the average ratio of ITO Film dirt from
0.13% to 0.05%, an improvement of 61%.
SIP - Final Competition Report of Outstanding Projects was used to present
the assessed beneﬁts of the Top 5 projects

Note: DMAIC: Deﬁne, Measure, Analyze, Improve, Control.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report133

AUO University Training Program Highlights
College of Liberal Arts - Field Ecosystem

College of Business - Training of Internationalized Talent

AUO invited local and foreign industry experts to dissect market trends
and industry trends. The in-depth exploration and creation of verticalmarket application value served as inspiration for f ield knowledge andunderstanding of new business opportunities in the ecosystem.

As part of AUO’s global business expansion and overseas investment strategy, multiple language courses are offered for
expatriate and foreign employees for the effective improvement of communication efﬁciency, express our respect for
multiculturalism, promote the successful of transnational collaborations, and boost international competitiveness.

Field Ecosystem Series Driving the Future, Mastering the
Horizons

Field Ecosystem Series Smart Healthcare, Smart
Education

The age of smart mobility is upon us.
AUO hosted the Mobility Ecosystem
Summit featuring topical forumson the Smart Cockpit and Mobility
Service to share AUO and its strategic
ecosystem partners’ strategies andjoint accomplishments.

Interdisciplinar y exper ts
were invited by AUO toshare various f ield formats,their operating experience,technical advantages, andindustry trends. Employees
were inspired to think about
the business opportunities
from extended applications.

Vietnamese/Mandarin

Cross-cultural Exchange Seminars

Understanding of local people and culture iscultivated through cultural awareness in support of
the Southward Policy. The course assists expatriate
employees stationed in Vietnam with adapting to
the local workplace and Vietnamese employee cadrewith learning Mandarin.

The focus of communication and exchange in the
Vietnamese workplace assists expatriate managers
and employees in Vietnam understand important
information about local infrastructure and politicalbusiness exchanges.

English Public Speaking for Managers Course

German Micro-Learning Course

As par t of the Company’s globalized businessdevelopment, the course strengthens the English
speaking skills of senior executives to improve theirexternal communication and image.

German project team members were provided withassistance on inter-lingual communication and crosscultural adaptation.

College of Future - From Learning about Digitization to Creating with Digitization
AIGC generative technology is changing how people work and live in the future. AUO University leveraged its expertise in e-learning to help employees improve their productivity through the applicationof new digital technologies. Online learning was utilized more than 10,000 times and a proprietary AUO ChatGPT was successfully developed for internal use. A total of 26 custom GPT projects were also
developed in response to the needs of different specialist departments. AUO supported competitions on digital innovation by encouraging university students to propose innovative solutions tailored to
the needs of smart ﬁelds and environmental sustainability. The cultivation of future talent strengthened our corporate image on campus and expanded our inﬂuence on society.

Digital Learning

Unlock your digital futurefrom the new generative
AI perspective

Lee-feng Chien (former CEO of
Google Taiwan), Roan Kang (VicePresident for Microsoft and Chief
Operating Off icer of Microsoft
Greater China Region), and JuChun Ko (Assistant Professor of
Graduate Institute of Networking
and Multimedia, National Taiwan
University, and partner of Dentsu
Group) were invited to sharetrends, applications, and theirinsights on generative AI.
Nearly 2,000 people trained

Digital Practice

Digital Creativity

ChatGPT basics and practicecove re d s i x to p i c s i n cl u d i n g
how to phrase questions,writing of e-mails, translation,
AI conversation applications,generation of high-quality reports,
and rapid webpage summaries
showed employees how ChatGPT
can become powerful tools at
work.
Chat GPT series Basics and PracticeMore than 10,000 people
trained to date

The contest focuses on AUO AIoT smart
fields and ESG applications were. The
core component of display visuals
was connected to smart innovative
applications based around AUO’s ESG
concepts. A Digital Creativity Ideathon
for Youths was also held to create aplatform for networking and exchange.

Digital Creativity Ideathon
for Youths with Potential

The contest attracted 52 teams withprizes presented to 5 teams. 9 teamsof students were invited to givepresentations on their work. Morethan 250 employees took part in theevent.

CONTENTS

1 Business
Operation

Material Topics

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report134

Sustainability targets, and promotion of total culture

All in ESG
The College of ESG established by AUO at the end 2021 has continued to develop
activities and courses tailored to different groups. These included the General
Education series to cultivate sustainability literacy in all employees, the Professional
series to cultivate sustainability experts for each unit, and the Trend series to help
executives connect with international trends. The courses are aimed at enhancing
the ESG knowledge and skills of all employees in a systematic manner. A total of 34
classes were conducted in 2023 including ESG short lectures, ESG presentations,
Master Lectures and workshops to promote total sustainability. Total exposure
exceeded 29,980 people.

Trend Power ESG Short Lectures
Outside experts invited todissect key net zero strategies
in Taiwan and important global
trends so that managers are up
to date on domestic/overseas
trends in sustainability topics.
This is extended to include
the Company’s development
direction, key risks, andopportunity creation. 3 sessions
were held in 2023.

Professional Power ESG Presentations
AUO employees took part in external training courses to connect their
distilled knowledge with AUO practices. The knowledge learned was sharedwith sustainability experts at each unit. Co-learning was utilized to inspire
enthusiasm for learning and results. Two course series were conducted fora total of 10 sessions in 2023.

General Education - Sustainability Lectures
The CSO accepted an invitation from the online learning platform to teach a class that wasshared simultaneously for internal learning at AUO. Learning about the company’s sustainability
accomplishments and vision helped build internal consensus among employees and their
willingness to become involved.

Master Seminar - Climate Change Film Exhibition
A climate change f ilm exhibition was held by AUO for the f irst time to support the publicbroadcast plan for the documentary Melting Greenland. Steven Ko, the founder of the Melting
Greenland project and chairman of O’right shared his motivation for the project and the impact
of climate change on the global environment. A total number of 640 people took part in theon-site and online screenings. At the same time, AUO sites also held joint static displays on theplastic reduction policy to communicate plastic reduction awareness to employees. After the
event, senior executives were invited to record their personal insights from the ﬁlm exhibition
and make a top-down declaration on climate sustainability action. Employees were in turninspired to engage in bottom-up sustainability behaviors.

AUO Sustainability Literacy Survey
AUO partnered with Social Enterprise Insights on the Sustainability Literary Survey to track the results ofsustainability literacy education among AUO employees. The 3rd survey featured AUO-speciﬁc questions
that incorporated the ten targets f rom AUO CSR EPS 2025 as well as content f rom the previous two
surveys. The questions tracked AUO practice and acceptance of sustainability actions while also providing
AUO with advice and feedback on sustainability practices. The survey was expanded in 2023 to cover all
global employees. A total of 13,105 employees took part, an increase of 254% over 2022. Average score was
80.67. In addition, the survey found that 11,478 employees agreed with the AUO’s sustainability behaviors.
They also provided constructive feedback and advice such as using less disposable cutlery, increasing
solar power, encouraging the purchase of electric vehicles, more use of local ingredients by cafeterias,
strengthening of paper-free policy, and more waste recycling. The results showed that AUO employees not
only possessed sustainability literacy. They were also active practitioners of sustainability behavior in theireveryday life and supported the Company’s various initiatives and activities on promoting sustainability.
Note: The 2023 Sustainability Literacy Survey was compiled in January 2024.

Sharing of Resources on Earth Day for Carbon Reduction and Planet Earth
AUO partnered with the resource sharing platform Give-Circle to show support for Earth Day. Employees
were encouraged to donate unneeded items from home. Waste can be reduced at the source by sharing
instead of hoarding and dumping as well as extended use instead of purchasing. The donation campaign
saw 1,068 people sign the Sharing for Carbon Reduction Declaration and donate 376 items. The power ofcharity beneﬁted 236 people in 9 counties and cities throughout Taiwan.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report135

4.3.2 Performance Management & Diversiﬁed Career
Performance Management System
The core spirit of the AUO performance management policy is to support the growth of company operations and the sustainable development of talent. Team and individual key performance indicators
are expanded from AUO’s strategic business goals every year. The twice-yearly performance management cycle combined with routine feedback, routine performance interviews, and multi-dimensional
appraisal design are used to build a workplace with two-way communications. Employees are provided with appropriate support and assistance to drive the continued development of talent.
Performance outcomes also serve as an important reference for personnel promotions and remuneration design. 100% of global permanent employees that completed the performance management
cycle in 2023.

Management

10.5%

Indirect
employees

Distribution of Routine Performance and
Employee Categories
100% of global permanent employees that completed theperformance management cycle in 2023.

30.4%

Directemployees

Non-management

69.6%

89.5%

PDCA Performance Management Cycle
Executed annually, implementing
365-day goal management

Target setting

Feedback at mid-year

Yearly assessment

Employee development

Planning

Do

Check

Action● The Management by Objectives (MBO) model isused for the planning and setting of goals andaction plans.
● Concrete goals for each level/unit are rolled
out hierarchically base on the annual businessstrategy.
● Managers and employees jointly discuss and set
individual work goals and development plans
based on unit goals.

● The action plan is implemented and timely
conversation, feedback and recognition
between managers and employees during
routine management are used to dynamicallyadjust the goal direction and methods.
● The mid-year performance evaluation is used toreview progress on goals and provide employeeswith timely feedback and assistance.

● At the end of the year, performance interviews
are carried out based on employee selfassessments and supervisor evaluations.
Consensus is developed on past performanceand future direction of development.
● Team-based performance appraisal are used toprovide feedback on the relative performance of
employees. Talent is also identiﬁed using normal
distribution.
● Multidimensional performance appraisal
models provide supervisors with a multi-facetedunderstanding of employee performance within
the team/role. These include multidimensional
performance appraisal indicators (corecompetency & task completion rate) anddiverse subjects. Employees and supervisors
can opt to invite their partners from trans-teamcollaborations to provide feedback on their work.

● Performance outcomes serve as an importantreference of education and training,
remuneration, and employee advancement.
● Supervisors must recognize and provide
employees with feedback on their performanceand contributions based on performanceoutcomes.
● For under-performing employees, the Company
will conduct a three-month performance
improvement plan to help them improve.

CONTENTS

1 Business
Operation

Material Topics

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

136

Internal promotion rate for management and specialist positions, Indirect employee job rotation rate

Diverse Career Development Channels
Internal talent mobility is important to AUO. We respect and balance employee career needs against the company’s business requirements to provide diverse options for career development. Employees
are encouraged to enhance their specialization, expand their horizons, enrich their personal resume, and open their eyes to international opportunities in exploring their boundless professional potential.

Enhancing Specializations and Planned Cultivation of Talent

Promoting Talent Mobility and Development

AUO designs career development roadmaps based on different roles and levels of complexity. Promotions in grade
allow employees to take over unfamiliar or more challenging roles through adjustments in their scope of work once
they have mastered their original role. In this way, employees are encouraged to continue honing their skills. Talented
personnel are regularly assigned through AUO’s dual-track system for management and specialist positions. In 2023,
the internal promotion ratio for management and specialist positions was 89%. We not only emphasize internal training
and development for employees but also ensure that employees are provided with a well-deﬁned career path within theorganization. At the same time, an expert selection system has been into place to encourage the continued reﬁnement of
employee’s technical expertise. Key technical talent are provided with recognition and accolades. For all of the promotion
pathways mentioned above, the quarterly human resources review meeting examine each employee’s career planningand current assignment to ensure that the right people are in the right place and developing in the right direction.

In response to AUO’s biaxial transformation strategy, we have initiatedgroup-wide and global operations and talent deployment. We have also
implemented individual development plans to provide career opportunities
for colleagues through mobility and development. In 2023, the indirect staff
rotation rate was 26%, and internal transfers of indirect staff accounted for
79% of the total recruitment demand. We encourage colleagues to inherit
organizational knowledge and broaden career possibilities through task
rotations, aiming to cultivate global talents across domains and industries.

Talent Mobility and Development Integration Plan
Global/Group Talent
Development Program (GDP)The Triple-C plan for Culture, Connection andCommerce is used for the systematic cultivationof interdisciplinary talent and for enriching theirinternational horizons by providing a global stage
for development.
CultureFamiliarizing oneself
with local culture toenhance organizational
identity.

Job-Bid
A transnational and trans-Grouptalent mobility platform has
been established with open andtransparent listings of job openings.
Time limit for job bids is also
relaxed to accelerate the horizontal
development of quality talent. The
platform also helps with talentretention, respect for management
authority, and protec tion of
employee rights.

Job-Rotation

Connection
Strengthening crossdomain connections
to establish crossindustry networks.

Commerce
Enhancing businesscapabilities tocultivate a global
perspective.

Supervisors can use performanceinterviews and employees’ personal
development plan to offer job rotation
opportunities when appropriate forcultivating all-rounders within theorganization.

Expatriate
Due to the continued expansion of our overseas manufacturing locations, AUO began surveying interestin expatriate assignments and rolling out an expatriate talent strategy in 2023. Expatriate assignments are
periodically reviewed by AUO. There are currently 230 employees assigned to expatriate positions around theworld. All are provided with the most appropriate and comprehensive care and support whether they arebachelors or took their families with them.

Flexible Beneﬁts Plan and Supporting Management
Mechanism for International Assignments

Advance Preparations
for Expatriate
Assignments

Arrangement of advance preparations such as health exam,shipping of personal belongings, environmental inspection,and visa services.

Essential Subsidies for Regular inspection of local standard of living to design expatriate
stipend as well as accommodation, transportation and
Living in A Foreign Land telecommunications subsidies that maintain the quality of life.
Expatriate Assignments Provide family stipends, children’s education subsidies, andAccompanied by Family family housing to support home-building in a foreign land.
Expatriate Care andSupportE n t i t l e m e n t to ex p a t ri a te g ro u p i n s u ra n ce a n d S O S
emergency overseas medical assistance services.

Expatriate Talent
Rotation Mechanism

Rotation mechanism is activated at end of assignment forplanning of career development upon return.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report137

4.4 Health & Safety
4.4.1 Healthcare
AUO considers employees to be a company’s most important asset. We have worked for many years to cultivate a friendly and healthy workplace based on our people-centric philosophy. In terms of
employee healthcare plans, AUO resources are channeled through the Human Resources Center, Wellness Centers, Environmental Health and Safety and other units to create a platform that provides
comprehensive care of employees’ physical, mental, and spiritual well-being. Employees can also engage in self-management of their health.

● Health seminar● Mental hygiene
seminar● Weight loss event● Site road run● Blood donation

Tracking andFollow-up● Blood pressure
measurements for all
employees● Vaccination● Acupuncture
massage

Served 203,334 times

lth
ea
H

Health Exam
● New recruit physicalexam● Annual health exam
● Special operations
health exam
● Middle-aged andolder people highlevel health exam

Epidemic Prevention
Health Management● Expatriate healthexam● Female cancer
screening● Liver, stomach andintestinal protection● Visual health check

on
moti
Pro

Track
ing
a
Follo
w-u ndp

Holistic health care

HealthEnvironment
Establishment● Follow-up on anomalies
from annual health exam
● On-site occupational
medicine consultation● Psychological counseling
EAPS

Health Risk
Management

Served 61,963 times

●
●
●
●
●
●

Trafﬁc and occupational
Injury care
Handicapped care
Cancer care
Mental illness care
Extended sick leave care

Served 9,197 times

roup
kG
-ris
At

The “Holistic Healthcare Plan” was devised
by AUO based on the three principles of
Healthy Environment Building, Health Risk
Management, and Protection of At-riskGroups. The application of health big dataand introduction of hospital resources allow
all employees to improve their personal
health through self-management. Healthservices was provided to employees morethan 300,000 times in 2023 through the four
dimensions of health exam, health promotion,
tracking and follow-up, and at-risk groups.

HealthPromotion

HealthExamCaring for
Employee HealthProtection of
At-Risk Groups

At-risk Group● Abnormal workload● Respiratory protection
management
health assessment● Maternal health protection ● Middle-aged and● Human factor engineering
older people healthmanagement
management● Return-to-workassessment

Served 28,362 times

Decreasing severity of the COVID-19 virus meant the lifting to international travel restrictions and a return to normality. The COVID-19 virus has not gone away however. AUO is continuing to monitor new
viral strains across the world and providing employees on business trip with the corresponding epidemic prevention measures.
Test Management Rat/Nucleic Acid Testing

Taiwan sites: 6,010 physically unwell employees were
provided with RAT kits
China sites: Nucleic acid testing conducted 9,498 times

Enhancement of
Personal Health Protection
1,680 employees on business trips provided withepidemic prevention packs
Epidemic prevention face masks provided to 110
people in special groups (e.g. pregnant women)
COVID-19 vaccination for 1,750 people
Flu vaccination for 1,530 people

Support forConﬁrmed Cases

Checked on the health of personnel withconf irmed diagnoses 3,090 times

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report

138

Maternal Health Care for Employees
AUO is supporting “SDG 3: Ensure healthy lives and promote well-being for all at all ages” by providing support for women during reproductive phases in response to the increasing severity of declining
birth rates. In addition to existing healthcare services during pregnancy and after childbirth, in 2023, AUO also added care services for pregnancy preparation to provide female employees with morecomprehensive care.

Pregnancy Preparation Phase
Three-Part Guide to Pregnancy
Seminars
provide the latest information onfood and health education during
pregnancy preparation
Signing of agreement withdomestic artif icial insemination
institutions

Pregnancy and Childbirth Phase
Provision of guidance during pregnancy byprofessional nurses and prenatal health assessmentby occupational medicine specialist
Evaluate on-site hazards and ensuring the safety of
the workplace
Flexible working hours and employees given the
choice of working at nearby sites

Postnatal Recovery Phase

Maintenance Phase and Healthcare

Provision of postnatal health advice
by nurses

Provision of better-than-statutory healthcare

Postnatal health assessment by
occupational medicine specialist
Flexible breastfeeding hours andf riendly breastfeeding spaces

Female-only health exams (breast ultrasound,mammography, pap smear, gynecologicalultrasound, gynecological cancer blood tests)
that can be performed on-site
No-gap subsidies on regular breast ultrasounds
for women on shift work

Epidemic prevention talisman for pregnant women
Pregnancy gifts and joining employees inwelcoming new babies

Pregnancy assistance seminars
attracted 386 employees

Material Topics

Pregnancy/postnatal maternal health consultation services wereused 189 times
Female-only health exams conducted for 4,295 people

Female health consultation services used by 363 people
Breast ultrasound for women on shift work conducted for 104
peopleRate of regular return visits for personnel with neuro-cardiovascular anomalies (three-hypers)

The average age for AUO employees is 41, all kinds of chronic illnesses are beginning to surface. AUO pays close
attention to employees at high-risk of neuro-cardiovascular disease and issues the risk index for overall employee
health every month. Employees are encouraged through the Wellness Center to lower their risk index throughexercise, weight loss, and their diet. Annual increases in the return visit rate for personnel with neuro-cardiovascular(three-hypers) anomalies was also set as a target to enhance employee health awareness and reduce the risk of
disease. The return visit rate in 2023 was 70.55%, an improvement of 30% over 2022 (34.23%). In 2023, there were 14
cases of neuro-cardiovascular disease (stroke/cardiac arrest) in 2023, the same as 2022. Reducing the chance of neurocardiovascular disease therefore continues to be an issue of concern for AUO.

External Recognition

AUO was recognized by the Health Promotion
Administration of the Ministry of Health and Welfare withthe “Excellent Healthy Workplace - Sound Health Award.”

Neuro-cardiovascular disease support in 2023
No. of neuro-cardiovascular disease cases

5,899

Total frequency of return visits

4,162

Return visit rate

70.55%

No. of people with neuro-cardiovascular disease14

Note: The scope is Taiwan sites

AUO head quarter presented with the “Friendly
Breastfeeding Room Certiﬁcation - Distinction Award”
by the Hsinchu City Public Health Bureau in 2023.

All Taiwanese sites have received the Badge of
Accredited Healthy Workplace issued by the Ministryof Health and Welfare.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Category

Number of people coveredby management system

Total AUO workforce (Note)

Ratio

Employees

36,25736,46999.41%

Contractors

1,877,623

1,878,541

99.95 %

Fact
Sheet

Appendix2023 AUO Sustainability Report139

4.4.2 Safe Workplace
No effort is spared by AUO in promoting a safety culture that puts people
first. We seek to build an intrinsically safe workplace through safety and risk
management as well as total engagement. All global manufacturing locations
have obtained ISO 45001 Occupational Health and Safety Management
System certiﬁcation covering 99.41% of all employees. Taiwanese sites have also
obtained CNS 45001 certiﬁcation in accordance with the law.

Note: No applications for certiﬁcation are submitted for non-manufacturing plants such as the Slovakia plant (now converted
to maintenance center), overseas ofﬁces in Europe, US, Japan, and Korea, as well as the Taipei ofﬁce.

Safety Culture

A

The AUO Safety Rule was def ined in 2012 to regulate and prevent employees f rom engaging in dangerous work without proper training or
qualiﬁcations. Employees were also authorized to reject any tasks that violated the Safety Rule. Since the initiative was introduced a decade ago, AUO
has continued to build employee consensus on the importance of safety. Many safety culture activities, education, training and awareness campaigns
were conducted to boost employee knowledge and awareness on health and safety in the workplace. Every effort is made to reduce the chance ofindustrial safety accidents due to unsafe environments or behavior.
In 2012 and 2022, AUO conducted to company-wide surveys using the Bradley Curve model. In 2022, a three-year implementation plan was also
devised based on ﬁndings in the ﬁve key areas of leadership and management, safety procedures, personal responsibility, safety performance, andteamwork. Supervisors were required to practice top-down management while employees practiced collaborative supervision and autonomy from thebottom-up. These ensured that shop ﬂoor units and new employees both recognize the potential risks in their workplace, and possess the ability toprevent and mitigate accidents. The 2023 Safety Competition recognized the safety analysis proposals of 40 supervisors for contributions to their homesite. In positive thinking, 140 safety ofﬁcers and 18 supervisors were recognized for their examples on positive thinking. In terms of performance andpromotion, supervisors were recognized for their emphasis and efforts on employee safety and risk management. The Safety ABC competition saw 31
outstanding site supervisors and employees presented with performance awards and acknowledgment by the Vice President of Manufacturing.

AttitudeC

SafetyABC

CultureB

Behavior

Three-Year Safety Culture Promotion Plan
2022

2023-2024

LeadershipManagers Leading by
ExamplePositive Thinking

Safety Procedure

Proper Supervision by
Safety Ofﬁcer

Individual Responsibility

Strengthen Safety
Cognition

Employee Mutual
Assistance

Performance

Safety Performanceand Rewards

Performance andPromotion

Teamwork

Safety Partner

Key Action
Positive
Thinking

Employee
MutualAssistance &Safety Partners

Performance &Promotion

Implementation Outcome
Safety culture mascots were produced and presented to 1,100 supervisorof production units in the hopes that they will demonstrate leadership on
safety, inspire positive thinking by employees, use encouragement insteadof blame, and employ incentives instead of punishment.
The Safety Passbook App was set up and issued 1,073 reminders, 76 minor
injury reports, and 121 safety updates in 2023. Employees were encouraged
to look out for one another and flag any potential risks immediately. By
upholding the spirit of mutual assistance in safety, employees can become
safety partners and trust in each other.
The survey platform was used to promote relevant themes. Cartoons wereused to introduce all employees to the results of different hazard types andthe importance of prevention.

Executive secretaries and stewards for environmental safety were chosen
for performance bonuses and recognition on the basis of outstanding
performance by their sites in safety competitions

CONTENTS

1 Business
Operation

2 Sustainable
Management

4 Inclusive
Growth

3 Environmental
Sustainability

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

140

Employee Participation and Communication
Employee consultation and participation are valued by AUO. In Taiwan, employees are authorized to nominate labor representatives for occupational health and safety in accordance with the
Occupational Safety and Health Act. Once approved by the labor representatives of the Labor-Management Meeting, these representatives may attend the quarterly Occupational Health and Safety
Committee (Safety Committee) meeting to amend health and safety work rules, conduct incident investigations, carry out workplace environmental monitoring, and participation in the decision-making
on health and safety issues. The Labor-Management Meeting also conducts joint discussions on penalties for employees that break the rules and the method for selecting labor representatives. Any
requirements relating to health and safety issues must be discussed and a consensus reached by the Safety Committee and Labor-Management Meeting. AUO has also incorporated the importance ofsafety communications into our “Environmental Health and Safety and Energy Policy.” The communication mechanism has been strengthened to collect safety-related suggestions through different
communication channels including the President’s Mailbox, internal communication mailboxes, and the Labor-Management Meeting. Suggestions are thoroughly discussed by the relevant units before
taking further action and tracking of improvements. There were 15 safety communication cases (not including European sites) in 2023 and 100% were dealt with appropriately. AUO hopes to ensure
truthful reporting of problems by employees and continuous improvement through effective communications.
Material Topics

None of serious accidents, industrial safety accidents, and trafﬁc injuries, as well as frequency of disabling injuries among personnel and contractors

Health and Safety Indicators
AUO strives to enforce our safety culture through improvements to potential hazards and risks such as close calls and observation of safety behaviors. Quantitative targets have also been set. We
did fail to meet many of our indicators in 2023. Improvement measures have now been developed by AUO and we hope this will be reﬂected in the management outcomes. The majority of the 7serious occupational injuries were related to crushing and cutting, slips and falls, collision and impact. The main reasons for this included environmental obstructions, inadequate safety protection onequipment, inadequate personnel training, and poor operator discipline. Improvement measures have been devised by AUO. We hope to improve our management performance in 2024 and ensure thesafety of all employees and contractors.
2023 Occupational Injuries
Serious Occupational
Accidents (Note)

No. of occupational
disasters

7 cases

40 casesFrequency of disabling
injuries (FR)Industrial safety
accidents

0.49

17 casesTrafﬁc injuries

Frequency of disabling
injuries for contractor

150 cases

0.19

Types and Rates of
Employee Occupational Injuries

Types and Rates ofContractor Occupational Injuries

Slipping/falling 33%

Falling 67%

Pinching/rolling/crushing 20%
Bashing/hitting/Musculoskeletal
injuries 10%

Slipping/
falling 33%

Employee

Contractor

Falling 10%
Spraining/bruising10%
Stabbing/scratching/cutting 10%
Others 7%

Note: Serious occupational accident is graded by the Company based on the number of people injured and severity.

Prevention and Improvement of Occupational Injuries and Disasters
In 2023, workplace accidents, occupational safety incidents, and trafﬁc injuries exceeded the company’s self-management targets. AUO recognizes the need to accelerate improvement measures.
To address trafﬁc injuries, defensive driving training and promotion will be strengthened to enhance employees’ awareness of trafﬁc safety. The main types of occupational safety incidents include
hazardous gases, chemical leaks, and electrical ﬁres. To improve hazard identiﬁcation and appropriately apply smart management tools, AUO ofﬁcially introduced projects for special gas and chemicalsafety management, battery safety management, and implemented them through the safety subcommittees across various plant locations.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

141

Optimization of the Safety Rule

Inventory of Machinery Handover Risks

Created the Seven Rules of “Tag, Permit, Prevent, Protect, Clearance,
Passage, Shutdown” for safety so that they can be remembered by
employees to protect themselves and others.

Use the protection provided by comprehensive safety mechanism to prevent direct exposure of workers to hazardous
energies. These include checking the integrity of safety interlocks for contact risks the boundary between different
units. When an anomaly is resolved, the machine must be checked and reset from a safe area. Check whether safety
interlocks include non-visible risks (e.g. X-Rays) from connected spaces.

Introduction of Pre-Job Training Certiﬁcation Scheme
for Maintenance Workers
Inventory of maintenance operation
risks, establishment of maintenance
operation risk management scheme and
SOP guidelines, strengthen enforcement
and implementation of safety ofﬁcers formaintenance operations, analysis pastmaintenance operation accidents andcarry out related education and training,
and addition of mechanism for inspectionof maintenance operations.

Gas and Chemical Safety Management

AUO examines the root causes of accidents, and advanced management measures will be implemented throughspecial gas and chemical workshops. Supply safety management includes tank truck filling image recognition,
management of signaling on the parts management platform, and optimization of the steel cylinder return system.
In terms of detection management, this includes increasing detection points, maintaining detectors, and establishingtesting platforms, as well as implementing selection criteria and training for contingency protective equipment.

Battery Safety Management Program

Strengthening of Inspections

Inventory of operating hazards with a focus on high risks that usedmanagement tools such as Job Safety Analysis (JSA) and Kiken Yochi
Training (KYT) on hazard perception for preventive management. On-site
inspections and observations are employed for continued adjustment andoptimization to progressively reduce the likelihood of risks.

AUO refers to FM 5-28 (Direct Current Battery System Design, Operation, Inspection, Testing, and Maintenance Guide)and FM 5-33 (Preventive Standards for Losses in Lithium-Ion Battery Electrical Energy Storage Systems). This includes
battery monitoring management (setting battery monitoring indicators, remote alarm monitoring, visual inspectionof electrolytes), setting up safety monitoring systems for charging stations, establishing acceptance standards forincoming new batteries, and conducting training and drills for contingency response in battery ﬁre incidents.

Contractor Safety Management
Contractors are important AUO partners. AUO has therefore extended our safety culture management tocontractors as well to create a healthy and safety workplace. An e-contractor safety management system wasestablished by AUO for enforcing online self-management by vendors. Contractors are required to adhere strictly
to the standard operating procedures deﬁned for the all three stages (contracting, site access, and construction).
AUO hosted more than a thousand training session to prevent contractor accidents and enhance their safety
literacy during 2023. For site management, the introduction of a dynamic contractor management systemprovides real-time construction information and the status of hazard communication. AUO safety ofﬁcers cantherefore track key construction risks and conduct on-site inspections to ensure proper safety management
during contractor work.

Contractor Education and Training Course
A total of 1,240 sessions were held and attended by 1,499 contractors
Qualiﬁcation training
1,001 sessions

Supervisor training
239 sessions

AUO safety ofﬁcer training
247 sessions

Suzhou Site - Safety Experience Center
A Safety Experience Center
was set up by Suzhou Site to
conduct specialized safety
training for safety off icers,
equipment personnel, ERT
members, and workers
in high-risk positions.
S a fe ty ex p e r i e n ce to u r s
are also available for local
businesses, government, andcommunities to show how
safety management is being
implemented at AUO and its
results. A total of 79 groups
were hosted and training
provided for 2,714 people.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report142

4.5 Social Participation
4.5.1 AUO Foundation
In 2019, AUO established the AUO Foundation with the aim of fostering four main volunteer categories, including charity, culture, green initiatives, and education. By collaborating with stakeholders, thefoundation works on key actions to protect the natural ecology, promote popular science and environmental education, drive cultural innovation, and address public welfare concerns.

en volunteerl Investment in 2023
Category

Charity volunteer

Green volunteer

Education volunteer

Item

AUO Sustainability
Scholarship

Achieved
2023 Target

2023 Accomplish

10 million

Education volunteer

Cultural volunteer

8 million

Cultural volunteer

Fund for Wish Program

4 million

3.99 million

Transitioning
into a capacitybuilding programfor social innovation
organizations

Sustainable Agriculture
Alliance – vegetables, f ruits
and rice

11 million

10.85 million

11 million

Volunteer Service - Taiwan

8,000 Hours

9,726 Hours

8,000 Hours

Green Party

Note

Planting 1000
seedlingsv

Transitioning
into ecologicalconservation
activities

Ocean Party

Clearing
3 tons ofmarine waste

Clearing 2.89
tons of marine
waste

Clearing 2.5 tons ofmarine waste

Popular Science Education

4,600 persontimes

9,548 persontimes

4,600 person-times

Environmental Education

3,700 persontimes

11,164 persontimes

4,200 person-times

Time

Activity

AUO Foundation website

2024 Targets

7.87 million

Cash
(NTD)

Not Achieved-v

Note: Target will be calculated using surface area of ecological reserves after program transformation in 2024.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

4.5.2 Society Care

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report1432023 Accomplishments

Sustainability Literacy Scholarship
AUO has been inviting employees to donate a day’s pay to scholarships since 2006. Over NT$160
million have been raised to date for scholarships that beneﬁted more than 44,000 people; in 2015,
AUO formed a partnership with the National Museum of Natural Science in Taichung and the Yuan
T. Lee Foundation to broaden students’ horizons through the DADA’s Magic Science Camp 1-day
camps. Since 2020, AUO has partnered with the Teach for Taiwan (TFT) Foundation to promote therealization of SDG 4 “Quality Education” ideals through School Sustainability Cultivation Project. The
sustainability cultivation project is aimed at cultivating the sustainability literacy of students underthe 2019 Curriculum Guidelines. AUO Foundation provides grants to rural teachers so that they candevelop walk-study, practical workshops, environmental surveys and other topics based on children’s
requirements and discussions with students. By using more diverse learning methods to boost
student enthusiasm and motivation for learning, precious non-cognitive skills can be cultivated. These
will help students demonstrate their unique leadership skills in everyday life as well as enhance theirsense of self-conﬁdence and accomplishment.

More thanparticipated

7.87 million donatedto beneﬁt nearly 1,800 students

Physical and online science camps

The School Sustainability Literacy

were held a total of

Cultivation Program produced
research projects and beneﬁted

Over NTD

1,600 employees

6 times. The
camps beneﬁted 667 student andinvolved 242 volunteer sessions

15

more than

300 students

AUO Sustainability Education Exhibition
AUO held the Sustainability Education Exhibition in 2023 to showcase the inroads made by the AUO
Foundation on sustainability education. Students and teachers that took part in the School Sustainability
Literacy Cultivation Program were invited to share their learning projects. Exhibition were also held forthe popular science teaching plans from AUO environmental education fields, and video documentaries
of on-campus learning. Seminars were held to share the experience on public welfare to highlight AUO’s
commitment to sustainability education as well as recruit more employees and educational NPOs to get
involved in promoting sustainability education.
Teachers and students that took part in the School Sustainability
Literacy Cultivation Program share their walk-study project

Wish Program

AUO launched the Christmas Wish program in 2022 to raise Christmas presents and donations for rural schools and social welfare institutions. To expand our inﬂuence and fulﬁll the philosophy of “it’sbetter to teach a man to ﬁsh”, AUO partnered with the Dodoker charity crowd funding platform in 2020 to provide professional mentoring to charity groups, and cultivate their fund-raising projectskills. The WISH program was used to invite the general public to make a contribution. In 2023, the WISH Program continued to support green energy charity initiatives by donating solar panels tocharity groups that reached the fund-raising target. These helped the organizations secure steady long-term yields from green energy. Employees were also given the opportunity participate in thelottery on green energy so that their donations contributed to both energy and welfare. More than 12,000 presents and NTD 27 million in donations were raised over the past two decades.

2023 Accomplishments
Christmas presents

701

Raisedpresents(Note)

WISH Foundation

15

Beneﬁted
institutions

Raised nearly

4 million

NTD
in donations

Note: Each present was valued at around NT$500.

12

charities
took part
AUO volunteers delivered the carefully
prepared Christmas presents to Baoshan
Elementary School and also organized
exciting activities to celebrate Christmas
together.

AUO Foundation donates solar panels to social
welfare institution.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

144

Charity Club Services
7 charity clubs were progressively established at AUO sites from 2013 onwards to fulﬁll the mission of social care. Volunteers from the sites were recruited to mentor disadvantaged children on a longterm basis. Wilderness and coastal clean-up events were also held to protect the environment. In 2023, the charity service clubs volunteered 582 times and accumulated 1,324 hours of volunteer service.

Overseas Accomplishments
99 Giving Day

One Bag of Blood Program

99 Giving Day is an annual charity event that was ﬁrst launched by AUO’s China sites in 2017. A combination of
online donations and offline charity markets channel the spirit of compassion among our employees to raise
funds for charity. The event has been held for 7 consecutive years at the Suzhou site and for 3 consecutive years at
the Kunshan site so far. A fund-raising team is organized by the president every year and charity markets are also
held on site at the same time. Approximately NTD 65,000 in donations were raised in 2023.

The One Bag of Blood Program is held at the Suzhou Site every year. In 2023,
213 people donated their blood to make a contribute to the health and welfare
of society.

4.5.3 Green Living
AUO supported the spirit of SDG 13 “Climate Action”, SDG 14 “Life Below Water” and SDG 15 “Life on Land” by promoting the “Green Party” series of mountain and sea initiatives. Planting of forests andocean/coastal clean-ups served as the starting point for protecting the natural ecosystem of Taiwan.

Green Party
Green Party events are held by AUO every year to mobilize Group employees, their families, suppliers, and local communities for planting trees and caring for the ecology of Taiwan. In 2020, AUO signed
agreements with the Forestry and Nature Conservation Agency (FNCA) of the Ministry of Agriculture to adopt protection forests in Houlong (Miaoli), Qingshui (Taichung), and Yujin (Tainan). In 2023, AUO
issued the “Biodiversity Policy” along with a series of activities on living in harmony with nature.

2023 Green Party

5-Year Mikania Control Plan

The AUO “Green Party” at Taichung Site was held in
collaboration with social innovation enterprises. The
planting of around 1,000 Rhododendron to replenish thehedging, trimming of established trees on the site, site
eco-tours, and DIY environmental education workshops
helped the local community, local revitalization andcorporate groups learn about the importance of living inharmony with nature and ecological conservation.

AUO partnered with the Department of Environmental Protection of Taoyuan City and Hsinchu County, the Department ofAgriculture of Taoyuan, and the Hsinchu Branch of FNCA, as well as local community, environmental, and revitalization groups tohost Mikania eradication and river protection events as part of the 5-Year Mikania Control Plan. The plan consists of tasks in fourareas. The ﬁrst is the “Green Alliance” with the government, community, NGOs and schools; the second is the adoption of the local
waterway, establishment of river patrols, and rehabilitation of the local ecosystem for “Green Rehabilitation”; the third is to use
environmental education courses at the “Water Resource Gallery at the Longtan Site” (AUO environmental education facility) anddigital learning to cultivate sustainability literacy in order to accomplish the goal of “Green Educational ﬁnally, “Green Circulation”
provides circular recycling technology to social enterprises to create reuse value from Mikania Vine. The bounty on Mikania Vine
offered by the government is re-invested in environmental education.

Horticulturist
introduced
people todifferent species,
checked tree
health, learned
how to trim theirbranches andturn twigs into
mulch.

Volunteers work together to remove 1,311
kg of Mikania Vine, an invasive species.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

145

Ocean Party
AUO launched the “Ocean Party” coastal clean-up initiative in 2022. As of 2023, 6 coastal clean-up events have been carried out across Taoyuan,
Miaoli, and Taichung, resulting in 3,797 kg of marine waste being removed. A coastal clean-up event was held on the shore of Protection Forest
1340 at Waipu Fishing Harbor in Houlong, Miaoli, in 2023. More than 280 volunteers from the AUO Group, suppliers, and industry/university units
took part to remove 1,236 kg of marine waste together. To educate coastal clean-up volunteers on the importance of plastic reduction at thesource, ocean conservation, and low-carbon initiatives, we also invited hiinstudio to conduct environmental education before the clean-up, hired
electric shuttle buses for the coastal clean-up, and invited International Coastal Cleanup (ICC) to record the event and collect data. Environmental
education stalls were also set up to communicate to volunteers about the issue of plastic pollution. By choosing recycled products and taking
part in plastic reduction at the source initiatives in everyday life, we can make a difference on reducing ocean pollution.

Promotion of Sustainable
Agriculture
AUO launched the Group Purchasing project in 2008 thatencouraged employees to give their preference to local agricultural
products to reduce food mileage. The concept was extended tothe ingredients of employee cafeterias, festival gifts, Shareholders’Meeting souvenirs, and support of agricultural products f rom
local communities near our sites. AUO now partners with social
enterprises and agricultural transportation/marketing companies
to promote safe and high-quality Taiwanese f ruits to support
Taiwanese agricultural development through our actions.

In 2023, AUO collaborates with the Hsinchu Branchof the Forestry Bureau to participate in the adoption
and conservation of the beach along the coastline of
Houlong Bao’an Forest Protection Area in Miaoli.

2023 Accomplishments
Employees have purchased NTD

More than NTD

3.35 million in

28 million

environmentally-friendly fruits and other agricultural products
Purchased more than NTD

in contract orders

7.5 million in high-quality local rice

1,826 festival gift boxes valued at more than NTD
1.1 million from local communities and contractors

Purchased

Cumulative
OutcomePurchased more
than

720,000 kg
of riceCommunity Feedback
Longtan Site
Purchase

Houli Site

14.45 kg of locally-grown quality rice to be used in group catering andwheels on meals for elderly people living alone
Scholarships for

80 students from disadvantaged local families

Support for local agriculture: Quality rice grown by Houli Farmer’s
Association was used in employee cafeterias.

4,110 kg in quality local

lice were purchased directly
Community relations building: Sponsorship of emergency assistance

Local symbiosis: Adopted responsibility for cleaning the roads of Kaoyuan Village at aand community events. AUO sponsored NTD

total cost of NTD

projects in 2023

630,000

580,000 towards 116

Overseas Accomplishments
An Acre of Farmland
AUO Suzhou Site is actively involved in ecological protection. We helped build the Fuhui Sanctuary Park and launched the “I Have an Acre of Farmland” eco-rice sanctuary park adoption campaign. In
2023, AUO employees adopted 10.9 acres of rice paddies and supported local agriculture through their actions.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth

4.5.4 Popular Science &Environmental Education
AUO is continuing to invest in popular science and environmental education for thegeneral public. AUO Foundation has established environmental education venues
at the Longtan Site in Taoyuan and Taichung Site. We are the only manufacturing
enterprise to have two certif ied environmental education venues. At the sametime, AUO supports the cultivation of scientists through the promotion of popularscience education on optoelectronics. Physical and online learning channels as wellas partnerships with education platforms, NGOs, and local schools serve to promotescientiﬁc knowledge and environmental awareness at the grassroots level.

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

146

Online learning
Expanding educational resources, bridging the digital
divide, promoting lifelong and sustainable education
VR ﬁeld trips, digital learning
lesson plans

Sidadun Kiln
Cultural Museum
DADA’s
Magic Land

Educational
platforms

AUO
GreenArk

Environmental
education venue
DADA's Magic Science Camp, DADA's Magic Science
Camp, Taiwan Popular Science Train, Walk-Study at
Fuke, School Sustainability Cultivation Project
Promoting quality education, inspiring vision,
fostering self-directed learning

Schools

Physical learning

DADA’s Magic Land

AUO crafted “DADA’s Magic Land” at the National Museum of Natural Science. The fun and interesting popular science education base features real-world puzzles games and interactive exhibits. In
2023, we continue to cultivate our three main internal/external volunteer teams on helping the audience learn about optoelectronics in a fun way from the exhibits. A total of 126,209 people visited theexhibit during the year. AUO will continue to consolidate online/ofﬂine volunteers and educational resources to provide diverse and innovative exhibition services, and cultivate environmentally literate
optoelectronic scientists.

Volunteer Service

Curriculum Services

The exhibition is supported by our three main volunteer teams made up of the young andold. These include the NMNS volunteers responsible for routine venue maintenance, AUO
corporate volunteers that assist on their own initiative during public holidays, and senior highschool volunteers that provide their foreign language proficiency. In addition to volunteer
services, AUO is also continuing to host empowerment training on basic optoelectronics andguided tours. These lower the threshold of service for volunteers and improve the quality ofservice. In 2023, volunteers took part in providing exhibition services 1,021 times.

Different types of courses were developed at the exhibition including the four DaDa’s
Classroom experience-based courses; the real-world puzzle game features puzzle-solving
exhibits that explore scientif ic principles. Group bookings are available for guided tours
with an appropriate level of detail and examples based on real-life scenarios. These assist
participants with exploring optoelectronics science from a different perspective. The courses
were attended 8,881 times in 2023. Total participation to date is 20,886.

DADA’s Magic
Science Camp
AUO drew on its core business to form apartnership with the National Museum of
Natural Science and Yuan T. Lee Foundation
on developing the 1-day DADA’s Magic
Science Camp. The camp is conductedb o t h o n l i n e a n d o f f l i n e to ove r c o m egeographic constraints and allow students
from different regions and ethnic groups toengage in self-directed learning and expand
their scientific horizons. In 2023, 667 juniorhigh school students that received the AUO
Sustainability Literacy Scholarship were
offered f ree places at the camp. A total of
3,708 students have beneﬁted as of 2017.

Teachers Workshop

During the classroom course of DADA’s
Magic Science Camp, students discover
the three magical colors in white
through hands-on experiments.

AUO and the scenario-based science teaching materials team at
Learning in Society (LIS) co-developed three sets of digital teachingmaterials. These included two videos on scientific principles andone set of guided e-learning materials on optics. The scientif ic
principles videos were made available through LIS and Junyi
Academy platforms. At the end of 2023, they had been used by
43,761 teachers and students as supplementary teaching andlearning materials. For the guided e-learning teaching materials, ateacher’s workshop was created in conjunction with LIS that was
attended by 27 natural science teachers at elementary schools
in northern, central and southern Taiwan. The digital teachingmaterials ampliﬁed the inﬂuence of optics education.

Elementary school natural scienceteachers taking part in the teachers
workshop try out the optics pack.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

147

Environmental & popular Science Education - Taichung Site
The environmental education facilities at AUO’s Taichung Site include Green Factory, Green Energy, and Sidadun Kiln Culture. Twosets of courses for elementary, junior high, and senior high schools were developed based on the 2019 Curriculum Guidelines andSDGs. These courses have been conducted for 9 years and have been attended by 7,890 students from 118 schools. In response
to global climate issues, the energy course expanded to include net-zero concepts in 2023, helping students understand theimportance of energy use and its impact on our lives through interactive learning. In 2023, the literacy course was combinedwith AUO Charity Club services and the Wish Program, benefitting disadvantaged students. The course was attended by 2,357
participants that year and has reached a total of 5,862 participants so far.
Environmental education teachers lead rural
students in learning about net zero concepts
through everyday scenarios.

Environmental & Popular Science Education - Longtan Site
In 2023, AUO Green Ark at Longtan Site implemented intermediate courses and new teaching aids to enhance the learning
experience. The environmental education program had 8 sessions and was attended by 197 teachers and students. AUO also
partnered with the Laojie River Education Center to conduct outreach courses for schools, reaching 965 teachers and students.
The “Language of Rivers and Tea Eco-Tour” was held for the second year, with 5 sessions in 2023. AUO was invited to become a local
environmental education facility, with 124 participants from 33 units taking part in the tours.

Guided tour of Longtan Site discharge outlet (nowsealed) conducted by volunteers.

Taiwan Popular Science Train

AUO took part in the 2023 Taiwan Popular Science organized by the National Science and Technology Council for the ﬁrst time by released 3 experience-based courses on the themes of net zerocarbon emission and sustainable energy. AUO used role-playing as scientists, engineers, and architects to introduce students to net zero knowledge through creative experiments. Teaching aids
made from 100% recycled materials were also combined with everyday scenarios to encourage people to think about carbon reducing behaviors in everyday life. The course set off from Taitung
Station and arrived at Keelung Station. The CEO of AUO Foundation and head of the Energy Department volunteered as well to encourage more corporate volunteers to take part. The event
brought sustainability literacy education to the rural parts of eastern Taiwan and expanded the reach of popular science education. 587 teachers and students from more than 30 schools as well
as 15 corporate volunteer sessions were involved during the event.

Amy Ku, CEO of AUO Foundation volunteered on the
train to join rural children in learning.

Students used the torch to simulate the sun andwork out how to maximize the efﬁciency of solar
panels.

Camper van built from 100% recycled materials as ademonstration of wrappable solar panels.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

148

Suzhou- Youth Empowerment Camp
Suzhou Site has invited high school students to take part in summer learning experiences in the form of the Youth Empowerment
Camp since 2022. During the 2023 summer break, Suzhou Site partnered with the Suzhou Industrial Park Association of Enterprises
with Foreign Investment (SIP AEFI) to co-host research and learning activities. A total of 42 students were invited to take part in the
1-day learning experience on display manufacturing and development history. The ﬁrst safety training center in the industrial park
set up by Suzhou Site was used to learn about the eight evacuation scenarios, and learn about safety in scientiﬁc systems. Throughthe Health Center at Suzhou Site, they learned about innovative sporting concepts based on the interaction of smart and healthtechnologies. The opportunity to get hands-on in the design of industrial programs helped bridge the gap between students andindustrial smart technology. Finally, a tour of Yeoyuanju showed the students how the residents of Quatang Barns used to live andgave them a better appreciation of AUO’s investment in heritage conservation.

4.5.5 History & Culture
Sidadun Kiln Cultural Museum

2023 Accomplishments

The mission of AUO Sidadun Kiln Cultural Museum is to cultural preservation, sustainable development, and literacy education. In
response to key international energy issues and net zero trends, energy creation (solar panels) and energy storage (containerizedenergy storage) were combined at the end of 2022 to transform the museum into a sustainability facility powered by 100% green
energy. In 2023, AUO set up three exhibition areas on the themes of cultural preservation, smart technology, and sustainable net zero.
With the assistance of AUO’s Advanced Manufacturing Center, pedestrian ﬂow technology was introduced featuring a ﬁsh-eye lens,algorithms, and proprietary AI models for implementing pedestrian counting and geo-fencing. The museum became a test site for
AUO to promote smart technology and green energy to the outside world, as well as an important venue for business development
and customer management. In terms of cultural preservation and sustainable net zero, AUO developed “Super Field Day”, its ﬁrst
junior high school course that explores environmental changes and the use of energy through different eras from a local cultural
perspective. A total of 164 teachers and students from 5 rural schools were invited to experience the course.

Hosted70 groups and 17 schools

Museum was visited

4,686 times

Reached12,956 people

Cultural volunteers took
Cumulative
Accomplishments(Note)The introduction of smart pedestrian ﬂow recognition technology
showcased the integrated application of technology and humanities
at AUO.

Guided students on an exploration of issues such as humanliving requirements, environmental sustainability and energy
use as well as an experience of sustainability in the local
environment.

Note: from 2021 to 2023

part

321 times

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

C Major Culture & Music Festival
AUO showed our support for Earth Day and Taiwan’s key strategies for net-zero emissions
in 2050 by hosting the “C Major Culture & Music Festival” at Sidadun Kiln Cultural Museum.
AUO volunteers and their families, 10 suppliers, Cultural Affairs Bureau of Taichung City, local
elementary and junior high schools, Central Taiwan Environmental Education Venues Alliance,and local revitalization associations were invited to take part in the event. The event embraced thetheme of 3C (Culture, Carbon, Concert) for promoting plastic and carbon reduction. In addition tosaxophone performance by a band up of senior managers from each site, there were also otheractivities including a green market, concert and DIY workshops. In keeping with the philosophiesof environmental education and carbon reduction, circular cutlery were available for rent toadvocate for using less disposable plastic cutlery. Reclaimed materials at the sites such as wooden
pallets were used to build the stage and cardboard were used to build seating. Nearly 1,000 people
took part in the event which encouraged participants to think about the environmental impacts ofmodern life, learn how to respect different cultures, and consider ways of living more sustainably.

Kunshan - Yeo Yuan Ju
The Quatang Barns were preserved but AUO when the Suzhou site was built and became
Yeo-Yuan-Ju. The historic buildings embodying local people and culture were condensed toprovide a glimpse into the livelihoods of Quatang people out of AUOers’ respect for history andlove of local culture. Yeoyuanju is one of the research and learning experience venues used by
Suzhou site and SIP AEFI for the Youth Empowerment Camp they co-host. The event introduces
more people to Yeoyuanju so they can learn about Quatang culture and AUO’s investment in
the preservation of cultural heritage. In 2023, Yeoyuanju received nearly 600 guests from thegovernment, schools, customers, and suppliers.

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

149

Walk-Study at Fuke
The Fuke walk-study event was jointly developed by Taichung Site and Fuke Junior High School
13 years ago in 2010. In March every year, newly enrolled students go on a walking tour to learn
about their homeland and explore the surrounding ecological landscape, history and culture,and industry development. In 2023, AUO enhanced the walk-student event by incorporating
SDG 7 “Affordable and Clean Energy” and SDG 13 “Climate Action.” Students were introduced
to the important of energy issues and the urgent need for net zero targets. The introduction
to the Cultural Museum and kiln site was also combined with SDG 11 “Sustainable Cities
and Communities” so encourage students to think about the balance between culture andtechnological development. A total of 619 teachers and students took part in 2023. Up to 8,373
teacher and students have taken part since 2010.

Xiamen - Shantou Village
AUO Xiamen site is located at Shantou Village. The Minnan settlement with more than 170 yearsof history was systematically preserved by AUO in keeping with our love for cultural heritage.
The key topics of 2023 Shantou Village summer camp included environmentalism, smart
manufacturing, and cultural legacy. Employees and their children were invited to not only learn
about the culture of the historic Minnan houses at Shantou Village, but were also introduced
to smart manufacturing and environmental protection. The event not only communicatedthe AUO culture of combining people and technology but also strengthened the connection
between the family and the Company.

5

Agile Innovation

5.2 Smart Manufacturing

5.1 Innovative R&D
5.1.1 Intellectual Property Rights

5.3.1 Energy Business Development

5.1.2 Intelligent Life

5.3.2 High-Quality Solutions

5.1.3 Sustainable Products

5.3.3 Green Energy Compatibility and Inclusion

Annual Highlights

Material Topics

With rich innovation energy and patent

AUO connected upstream andlayout, AUO has been recognized bydownstream supply chains to form

Clarivate and LexisNexis asa Micro LED ecosystem, realizing

Top 100 global innovators.

AmLED dynamic regulation andCavity energy-saving technology
create stunning images while reducing
energy consumption.

5.3 Affordable & Clean Energy

diverse applications of Micro LED.

Digital transformation and smart
manufacturing has yielded
fruitful results, winning us the

Manufacturing LeadershipAward in consecutive years.

◆ Technological innovation and market layout◆ Sustainable products

Ranked among the Top 3 global
automotive display suppliers,
AUO is driving a new experience with aseries of automotive display solutions.

Ranked Top 5 energy companies
in Taiwan, with a power plant
cumulative capacity of 515 MW,
equivalent to the annual electricity
consumption of 160,000 households.

Our Vision
AUO specializes in the R&D and manufacturing of display panel, and develops high-valued and differentiated product applications. Leading the industry with abundant R&D personnel and innovativetechnologies, AUO is committed to providing diverse vertical solutions through integrating core display technologies with AIoT.

Target and Progress

Achieved

Not Achieved

2023
Target2023 Our actions

2024
Target2025
Target2026
TargetResponses

Technology capacity:
Decrease energy
consumption of IT
Products (Note)
Base year: 2021-

AUO continues to develop technologies to enhance the transmittance of panel display
cases and the light-emitting efﬁciency of backlight sources, as well as introducing lowenergy ICs to reduce product energy consumption.

25%

30%

35%

5.1.3
Sustainable
Products

Technology capacity:
Decrease energy
consumption of car
products (Note)
Base year: 2021-

AUO extensively uses Adaptive mini LED (AmLED) technology in car displays, which
offers greater energy-saving beneﬁts compared to traditional mini LED technology.

20%

30%

35%

5.1.3
Sustainable
Products

Technology Capacity:
Increase thepenetration rate of TV
LCD panels (Note)
Base year: 2021

R&D
ongoing

AUO continuously experiments with new materials in combination
with pixel design to increase the penetrability of light in display cases,
achieving the goal of energy saving.

R&D
ongoing

>10%

>10%

5.1.3
Sustainable
Products

Re-establish productcarbon footprintprojects and systems in
response to standards

Systemtrial

AUO is developing systems based on an established methodology with asystematic data collection infrastructure in progress.

Systemintegration

Product
carboninformation
service

Product
carboninformation
service

5.1.3
Sustainable
Products

AUO provides customizable energy storage systems for businesses andhouseholds, offering complete electricity storage and energy solutions.
5 energy storage cases are planned to be implemented in 2023, withcompletion and grid connection expected in 2024.

4 cases

-

-

5.3.2
High-Quality
Solutions

AUO Energy Business collaborates with international companies tointroduce high-eff iciency mono PERC multi-wire modules, providing
diverse and high-quality solutions for different green electricity market
demands. The shipment volume of solar modules will reach 473 MW in
2023.

300 MW--

5.3.2
High-Quality
Solutions

Material Topic

Number of cases ofmodules requiredby the solar energy
marketShipment volume
of modules requiredby the solar energy
market4 cases

435 MW

performance:
R&D ongoing

performance:
System Trial

performance:
5 energy
storage cases

performance:
473 MW

Note: In order to be more aligned with the client's product, we are redeﬁning and resetting the original goal for this issue. The new goal will now be targeted towards the benchmark product of each year's new caseproduction.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report152

5.1 Innovative R&D
AUO is a force in the ﬁeld of R&D and innovative technologies. Guided by the objects of biaxial transformation, the technology R&D team adopted a forward-looking development strategy, continued toinspire innovative thinking within the organization, developed pioneering display technologies, expanded into new application markets, and forged ahead to realize its future vision for humanity.

IP and Patents

Innovation Capacity
Promote the expert
system and encourage
innovation activities

Talent Development
Build systematic learningand development system
to cultivate excellent R&D
talents

Establish patent
management measuresand systems

Technology
Leadership

p.155

With the biaxial
transformation strategy
as the core, continue
to develop high valueadded products
and ﬁelds multiple
applications of thedomainIndustryAcademic Cooperation
Alliance with domestic
and foreign universities
to accelerate thedevelopment of forwardl
ooking technology

p.130

5.1.1 Intellectual Property Rights
Intellectual property (IP) rights are among the most important assets owned by AUO. The“Intellectual Property Management Policy”, “Innovation and Patent Management Rule”, “Ruleof Rewards on Patents and Inventions” were devised by AUO based on the management
requirements and goals of IP rights.
AUO values our own IP and respects the IP of other parties as well. Proactive IP
management includes encouraging employee innovation and the creation of quality IP
in order to enhance our competitive advantage and boost our corporate profitability; atthe same time, the IP of other parties are carefully assessed to reduce the risk of patentviolations. In 2023, AUO’s intellectual property management measures and systems once
again obtained the AA certification from the Taiwan Intellectual Property Management
System (TIPS), and received certif ication validity until December 31, 2025. Through animpartial third-party review and veriﬁcation, it is proven that AU Optronics has reached abenchmark level in the ﬁeld of intellectual property management, enhancing the ability tomaintain the value and beneﬁts of the company and shareholders.

p.120

IP Blueprint
Patent management
measures
Form expert committee fordecision-making
Obtain most appropriate patentrightsExecute project to utilize patentassetsTrade secretmanagement
Document and information
classiﬁcation
Signing of NDA
Strict management of trade
secrets documents

Innovativeenvironment
IP system and platform
Training and awarenessReward for IP innovators

Risk
management
Compliance mechanism
Monitoring of IP risks andopportunity
Identify value/risk

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Key IP Management Approach
Innovation and Patent
System/Platform

Tracking andanalysis of innovative
proposal statistics,
patent applicationand management,
and patent strategy
platform

Education and Training on
IP-Related Topics

IP Innovation Activities/Rewarding

Both mandatory and optionalcourses are conducted based on
the target audience and actual
requirements

Patent rewards, business secrets,and external publication rewards

In 2023, 4 courses were designed
on patent topics in practice. 8
sessions attended by 176 people
were held; 4 courses were designed
on IP management. 6 sessions
attended by 77 people were held.

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

153

AUO’s patent strategy not only maintained a high level of growth in quantity to be
ranked No. 3 among Taiwanese legal persons in terms of patent applications andapprovals in 2023. Our overall performance was also recognized by international
institutions leading to the special honor of being a Top 100 Global Innovators 2023.

Cumulative patent applications and approvals in recent years
Cumulative applications
Cumulative approvals
In 2023, the Taiwan factory publicly
awarded 81 patent certif icates atthe business presentation meetinga n d a l s o g r a n te d 1 8 s u p e r i o rpatent awards.

Cumulative applications as of 2023

31,00030,00025,000IP Strategy and Performance

20,000In order to strengthen AUO's patent layout in high-value-added products and to implement thestrategic goals of biaxial transformation, we continue to launch technical development projects aimed
at creating high-value patents in the technical domains of enhancing display technology value (GoPremium) and deepening vertical market applications (Go Vertical) (hereinafter referred to as patentcultivation projects). The number of patent cultivation projects for 2023 will still maintain a doubledigit ﬁgure. The number of invention patent applications in the ﬁeld of value addition remains above
300, while strengthening the layout of key technologies. For example, in the ﬁeld of panel value-added
technology, the number of invention applications for Micro LED in 2023 is 188; the number of invention
applications for automotive displays is 21. In the ﬁeld of non-panel technology, the number of invention
applications for medical-related devices such as pulse diagnosers in 2023 is 4. We are focusing on further
optimization and value addition, improving production yield, strengthening optical eff iciency andextending applications.

Number of Patent Incubator Projects and Invention Applications for
Critical Technologies
Number of
projects

Number of Micro LED
invention applications

Number of car-related
invention applications

35
30

150

25
20

100

15
10

50

5
0

0
2021

2022

2023

Number of projects

Number of invention
applications

200

Number of Pulse Diagnosis
Instrument invention
applications

Cumulative approvals as of 2023

15,00023,90010,000
2018

2019

2020

2021

2022

2023

Green Patents
AUO actively develops production processes and products linked to energy conservationand carbon reduction. If an innovative technology reduces power consumption or
involves alternative energy supplies, then it can assign to the energy conservation andcarbon reduction sector. Examples of power consumption reduction included mini LED,
Micro LED, OLED, LED light bar and E-paper; alternative energy included production
processes, equipment and products related to solar cells. The AUO portfolio included
around 4,146 patents relating to energy conservation and carbon reduction in 2023. A
relatively high proportion was related to OLED and Micro LED. Micro LED saw the mostsigniﬁcant growth in 2023 with patent approvals growing by 71.1% compared to 2022.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

5.1.2 Intelligent Life

Fact
Sheet

Appendix2023 AUO Sustainability Report

The First 14.6” Folding Flex Micro LED Display in the World(Note 1)

AUO has 26 years of experience in display technologies. We overcame countlesschallenges and changes to become the leading panel maker in the world. As part ofour biaxial transformation in recent years, we diversiﬁed our investment portfolio andestablish a partner ecosystem to strengthen our operational resilience.

Micro LED can be used to make wrap-around and stretchable
displays. It can also be cut into special shapes and laminatedonto any curve surface with ease. When combined with TFT
driving technology, the result is a soft display that can be madeinto curved or folding displays. The world's f irst 14.6” folding
display based on Micro LED technology features a proprietarybend-resistant folding structure. The high-quality display with abend radius of just 4mm offers consistent brightness, contrast,
and colors at any viewing angle. The result is a folding display
product that delivers exceptional user experience.

Go Premium: Value-added Display
Technologies
Micro LED technology
Micro LED has become the dominant next-generation display technology due toits high resolution, high brightness, low power consumption, and high reliability.
The technology involved in reducing LEDs to sub-micron crystals also means an
exponential increase in the complexity of the testing and repair processes required
for mass transfer to the driving backboard. The high cost and R&D challenges meanthat the development of Micro LED display technology takes time. AUO labored for a
decade to improve product yield and master the mass transfer technology. The supply
was also integrated to build elite teams that form a complete Micro LED ecosystem.
The successful development and introduction of emerging display technologies suchas transparent, concealed and folding displays has now produced an explosion in
Micro LED applications.

13.5” Transparent Micro LED Panel with World-Leading
Resolution

SDIA Innovative Display
Award - Gold Prize

Large size Micro LED Transparent Display

First Micro LED Smart Watch in theWorld (Note 1)
In 2021, AUO launched a 1.39” Micro LED
display with the highest pixel density inthe world. Increasing maturity of related
equipment and components saw AUO
overcome the technical hurdles needed
to bring a commercial 1.39” smart watch
to the market in 2023. In addition tohaving a circular shape that is suitable
for smart watch designs, the display
featured 326 PPI pixel density, high color
saturation, and high contrast, as well as
improved angular color shift and service
life at high brightness. The new display
satisf ied the dual requirements ofenergy-efﬁciency and clarity of displayed
information outdoors in bright sunlight.

AUO overcame challenges in design and production processes
to break away f rom conventional LCD and OLED display
technologies and launch a 13.5” transparent Micro LED panel
with a world-leading resolution of 163 ppi. A transparency of up
to 55% and ultra high brightness of 5,000 lumen lets users enjoya high-quality audio-video experience in a high-tech package.
AUO is also actively pitching the technology at the smart vehicle
market to expand the potential applications for transparent
displays.

SDIA Innovative Display
Award - Silver Prize
Gold Panel Award
Hsinchu Science Park
Innovative Product Award

Transparent displays serve as a critical medium for accelerating
integrated real-virtual interactions and can be expanded to awide variety of applications. AUO combined glass substratewith Micro LED display technology to take advantage of
microscopic LED crystals’ high optical transparency, LTPS
technology and a bezel-free design to deliver 600 nits of fullscreen brightness, transparency greater than 60%, and wide
color gamut performance that is 110% greater than NTSC (Note 2).
When compared to transparent OLED display products, AUO’s
Micro LED transparent display technology wins out in terms oftransparency and high brightness. The ease of stitching Micro
LED displays together means it can also be used for an evengreater variety of applications of sizes.

Note 1: Market data gathered by AUO as of April 12, 2023.
Note 2: U.S. National Television System Committee.

154

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthGo Vertical:
Deepening applications in vertical ﬁelds
Smart Mobility

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Smart Medical

Digital Testing for Traditional Herbal Medicine

Interactive Transparent Smart Car Window

CES Innovation
Award

5 AgileInnovation

The seamless integration transparent displays and touch
control functions into side windows caters for a variety ofuser needs from basic entertainment functions, online
meetings to interactive AR experiences. The window
can also be connected to external cameras to improvesafety by reminding passengers to look out for passing
cars and check their surrounding environment.

AUO Health, an AUO subsidiary, developed the “Tongue Image
Capture System” carries out a two-stage image calibration process
based on standard environmental parameters, dedicated tongue
color cards, and color restoration algorithms. A.R.T. display is used
to ensure color ﬁdelity and prevent inaccuracies due to ambient
lighting, display monitor or the human eye in the past.

Smart Education and Enterprise
Rollable Rear Seat Entertainment Display

CES Innovation
Award

The world’s f irst rollable display(Note) developed by
AUO leverages the flexibility and bendability of MicroLED. The display can be rolled up and concealed within
the f ront seat backrest when rear-seat passengers
are not using it, offering greater design ﬂexibility. Thisfeature gives rear-seat passengers a comfortable andspacious ride with clear and bright, high-def inition
image quality in the space-limited cabin.

Note: Market data gathered by AUO as of November 16, 2023.

Smart P.O.D. (Place-on-Demand)
AUO Display Plus, an AUO subsidiary, developed a smart pod
solution equipped with sound insulation, environmental control
system, and smart electrochromic glass that can activate theprivacy function as necessary. The user simply scans the QR Codeon the door and follows the instructions to make a booking fora personal work or conferencing space. The pod was introduced
to the departure lounge at Taoyuan International Airport in
2023. The protection it provided against noisy environments andcrowds improved the waiting experience for busy travelers withhybrid ofﬁces.

Smart Retail
Smart Services
Paperless New RetailSpace4m, an AUO subsidiary, supports realtime remote management and purchasingof marketing content to stores throughout
Taiwan by the head ofﬁce. The elimination of
conventional printed posters and price tags
reduces the need for printed materials. As of
July 2023, more than 1 million posters havebeen distributed to more than 8,800 service
locations for nearly one hundred customers.

Senior Healthcare
AUO Care, an AUO subsidiary, developed the “eCaaS AgelessCommunity Service System” can be integrated with the
management team’s professional care module and f inancial
system to generate management reports. Lifestyle functions
such as PoS consumption, sports & health management, access
control and location services are also integrated. The “Safeguard
Solution” uses the Safeguard platform for uniﬁed monitoring andmanagement of IoT devices to assist long-term care institutions
with providing a caring service.

155

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2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

156

External Partnerships

Smart Non-Contact Vital Signals Monitor
Smart Non-Contact Vital Signals Monitor is based on millimetric liquid crystal array antenna technology developed by AUO. A combination of in-house development and industryuniversity collaboration with National Taiwan University and National Taiwan University of Science and Technology served to accelerate innovative development. The patented liquid crystal
millimetric radio wave control technology improves the signal-to-noise ratio and detection range to provide a heartbeat detection accuracy of over 90%; specialized low-electromagnetic loss
wiring, high-speed ﬁlter circuit, and AAI real-time status recognition technology effectively increases the recognition rate for vital signals by more than 30%. The result is greatly improved
detection performance and accuracy. The longer detection range and enhanced resistance to interference provided by the millimetric liquid crystal array antenna can automatically track
displacements caused by changes in user posture to provide reliable, non-contact monitoring of user respiration and heart rate as well as bed-exit detection at long range. The product was
designed speciﬁcally for solving the shortage in nursing manpower. It is particularly well-suited to reducing the burden on caregivers in a nursing center, retirement village, or seniors living
alone setting. The technology has now been successfully commercialized through AUO Care, one of our afﬁliated companies, and is now being promoted to long-term care institutions.

5.1.3 Sustainable Products
Material Topics

Technical capacity: Reduce the energy consumption of IT productions, reduce the energy consumption of car products, improve the penetration rate of TV LCD panels

Development of Energy Efﬁciency
Products
Displays ranging f rom small devices such as personal smart phones,
tablets, notebooks, and desktop PCs to large devices such as TV andoutdoor signage are used extensively in everyday life and work. The huge
number of electronic products is expected to consume very signiﬁcantamounts of electricity. In our quest to become a world-leading supplier ofgreen products, AUO is working hard to reduce the energy consumptionof our products. Existing products with outstanding energy-efficiency
are used as the starting point for the development of displays with evenlower energy consumption. Clear targets have also been set for future
breakthroughs.

mini LED Adaptive Control Energy Efﬁciency
Technology
AmLED (Adaptive mini LED) features mini LED backlighting
upgraded with AUO’s proprietary adaptive control technology
based on the two key functions of “Dynamic image processing”
and “Dynamic contrast and peak brightness adjustment”
working hand-in-hand. Precise and effective real-time dynamic
adjustment of individual zones based on the usage scenario
generates breathtaking imagery while reducing energy
consumption even further. AmLED technology was extensively
applied to automotive displays in 2023. The technology has now
been introduced into the design of 19 projects and is expected
to improve energy efficiency by more than 20% compared toconventional non-mini LED backlight products.

mini LED Cavity Energy Efﬁciency Technology
The Cavity (Note) design conﬁnes light from mini LED to a small area to prevent dissipation.
For smaller display areas, a Cavity-based design lets a smaller power supply drive the pixel
illumination. If Cavity is not used then a higher current is required to achieve the same
effect. In automotive displays for example, this translates into an energy saving of 3% due tothe number of small icons that require high brightness. The high-efﬁciency mini LED Cavity
design was incorporated into 14.5” automotive products in 2023.
Note: Cavity uses a reﬂective cavity to direct and concentrate LED light for improved efﬁciency.

NonCavity design

Cavitybased design

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthNotebook Display Products:
Improving Pixel Penetration and Array Transparent Film
Penetration
In 2023, energy savings for notebook display products came mainly from increase
aperture ratio and decreased shielded area in pixel design. AUO also focused on
improving the transparency of the Array (thin-f ilm transistor array) substrate’s
transparent driver layer by using the semiconductor thin-f ilm production process
to form transparent f ilms with a ITO (Indium Oxide) transparent conductive layer.
Transparency was still affected by the production technique however so AUO optimized
the Array production process parameters and improved the transparency of thetransparent ﬁlm. Together, the two improvements mentioned above improved productenergy efﬁciency by 3%. The technology was applied to 16” notebook products in 2023.

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

157

Desktop Display Products:
Compliance with Energy Star 9.0 Energy Efﬁciency Standard
AUO responded to customer requirements on energy-efﬁciency of desktop display
products by complying with the Energy Star 9.0 standard (Note), the strictest
standard to date. Improvements included increasing the light-emitting surface areaof the blue light LED chip, improving the light-emission efficiency of the LED, andusing high brightness guide plates and optical f ilm. We also optimized the color
ﬁlters to improve their compatibility with LED, as well as the aperture ratio and power
management IC architecture. These improvements were applied to the new 23.8”
desktop display developed in 2023, resulting in a 25% reduction in product energy
consumption compared to the baseline desktop display in 2021.
Note: Energy Star is a consumer product energy-efﬁciency standard and program launchedby the US EPA in 1992. The standard is updated every few years with new product energyefﬁciency targets. Manufacturers that voluntarily cooperate with the program may attach
the Energy Star label to qualif ied products. The standard is also a requirement in US
government procurements contracts.

Illustration of high-efﬁciency LED

Blue-light LED chip

Blue-light LED chip

Lead frame

Lead frame

Phosphor

Shielded area

Transparent area

Increase in process
precision to reduce line
width and shielded area

Optimization of process parameters
to improve the transparency of thetransparent ﬁlm

Phosphor

Extra-large
Blue-light
LED chip

Product Carbon Footprint
AUO began investing in product carbon footprint (CFP) verification in 2009. Due to the growing global push on product CFP in recent years, we began conducting more detailed inventories forcalculating product CFP. Methodology framework was reviewed by AUO in accordance with the product CFP standard (ISO 14067). Sound calculation methodologies were deﬁned for each stage of the
product life cycle from raw materials, manufacturing, use, distribution and sale, and disposal. Establishment of methodology was completed in 2022. Preliminary calculations for 22 selected indicator
products were completed in 2022. System development was carried out in 2023 based on established methodology. We are now working to deploy systematic means of collecting related data. AUO alsobegan requiring data on CFP-related factors from the supplier chain. Improving the quality of carbon emission factor data will facilitate further analysis by satisfying the requirements for CFP objectivity.

Sustainable Materials Course
AUO incorporates the sustainability of materials into considerations during the product research and development stage. Periodically, we organized educational training sessions with a focus onsustainable materials and invite relevant teams involved in R&D and production to participate, continuously enhancing our green development capability. In 2023, the training program's topics include
green product regulations and certiﬁcations, hazardous substance management, and recycled material validation, etc.

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2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

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5.2 Smart Manufacturing
AUO believes the smart manufacturing is one of the keys to solving the challenges of energy efﬁciency and product diversity. It is also an important pathway for boosting our own competitiveness andtransitioning to competition on value. AUO will therefore continue to provide customers and the industry with high value-added products and high-performance, high-reliability solutions through smart
manufacturing in order to identify even more opportunities for innovation and sustainability.

Smart Manufacturing Milestones and Vision
Manufacturing 2.0
Laying the foundations fortransformation into Manufacturing 2.0
2015
2016
2017

2018

2019

optimization

Big data
platform

AI concept
validation● Talent development● In-house● Equipment
●
●

2023
Performance

Transformation into smart factory

Increase manufacturing efﬁciency by 30%● Process
Big data
collection

Digital Transformation

Smart Management

automation
Smart inspection
and testing
Smart process●●equipment
manufacturing
development
Process quality
Development
Smart platform
development

2020

2021

● Smart production● Predictive
production
Precision control●● Time to Market● Cultivate AI Talent: AI courses offered by AUO University to continue
strengthening theory and practice on different levels in multiple technicalﬁelds. Between 2018 and 2023, advanced and high-level training courses werecompleted by a total of 1,600 people. A review mechanism (Note) was also used tobuild a talent pool. There are now 888 certiﬁed Level 2 and Level 3 experts.
● Establish R&D centers: AUO partnered with four top universities on joint R&D
centers. We are strengthening our R&D capability through industry-university
collaboration, recruiting talented professionals f rom different f ield, and alsoreaching out earlier to top talent.

2022

Digitalempowerment

Real-virtual
integration

Smart decisionmaking support

Adaptive
development2023

Self-adaptiveGreen
manufacturing

Recognitions

Digitalvalue-adding
operations● AUO Smart Expo: AUO hosted our 6th AUO Smart Expo in 2023 to not only showcase
our accomplishments in smart and innovative applications, but also to continue
promoting the spirit of manufacturing reform. This year was the ﬁrst time that AUO
has shown our results and progress in smart manufacturing to the outside world.
The event was a success in promoting networking and exchange between industry
businesses as well as academic and research institutions.
● Recognition: The promotion of smart manufacturing proved very rewarding for
AUO and has also garnered the recognition of many local and international awards.
Recognition from these bodies serves as a testament to the transformation of AUO.
They also help AUO adjust our future course and cement our leadership in the ﬁeldof smart manufacturing.

Note: Levels range from 1 to 3. Higher level indicates greater expertise.

Consecutive Win

2024-2025

U.S. Manufacturing Leadership Awards (MLA)

AUO was awarded for “Digital Supply Chains”, “Transformational Business Cultures”, and“Manufacturing in 2030 Award”

Global Corporate Sustainability Award Best Practice Award

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4 Inclusive
GrowthForging Green Manufacturing Through In-depth
R&D
The AUO smart manufacturing roadmap is based not only on the integration of IoT,
digitization, cloud services, and communication technologies to build cyber-physicalintegrated manufacturing model. We also aim to expand this to include agile and ﬂexible
strategic production, employee empowerment, and sustainability strategy. Our goal is
to become a role model for green manufacturing through enhanced productivity andefficiency. To strengthen our R&D, AUO and partners invested in the development ofCyber-Physical System. Multiple AI systems were linked together to realize a self-adaptive
integrated system that fulﬁlls the spirit of green production.

AUO Smart Expo
The Smart Manufacturing Expo has been held annually by AUO since 2018. The
many accomplishments of each unit are brought together at the exhibition venue so
employees can learn and network with each other, and provide them with inspirations
on manufacturing reform. In 2023, the event was renamed as “AUO Smart Expo” in its
sixth year. Theme was also expanded beyond manufacturing so that more units could
participate. The inside venue showcased entire processes from R&D, supply chain, andmanufacturing units while the outside venue encompassed the environmental safety,
sustainability, and energy businesses, as well AUO subsidiaries such as AUO Envirotechand AUO Digitech. To encourage industry networking and exchange, AUO invited ourpeers, other industries and the academia to view the expo as well to give them an indepth understanding of our investments and results. We hope to realize upgrades at
our partners in this latest wave of transformations. During the expo, AUO also hosted
26 technical forums on topics. The sharing and testing of research results between
professional digital talent within and outside of the Company was used to accelerate thepace of digital transformation by inspiring creative sparks and total participation by all
employees.

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Sheet

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Smart Manufacturing Expo at Overseas Site
AUO sites in China also held their own smart manufacturing expo to showcase their smart and innovative
applications, and to continue promoting the spirit of manufacturing reform.

Suzhou Site
The exhibition at Suzhou Site focused on accumulation ofexperience and output services f rom internal/external f ields.
The internal field centered on a smart manufacturing systemwith level 4 maturity that fuses together AUO total solutionsin 9 ﬁelds to help businesses embrace smart manufacturing in
the digital age. For the external ﬁeld, AUO is a global leader inthe supplier of “smart and digital transformation” consulting
services. AUO has so far used its wealth of experience to help
industries realize their smart transformation.

Xiamen Site
2023 was year zero for ESG at Xiamen site so an ESG booth was
set up in the Smart Campus Pavilion to communicate AUO’s
sustainability philosophy to both outsiders and employees.
Posters, videos, models of the distributed PV system on the site,model of the sewage treatment works, and plastic recyclingmachines showed visitors f rom inside and outside of AUO
how we are implementing the philosophy of sustainable
development during production, manufacturing, and everyday
life.

Kunshan Site
At the Kunshan Site, the Smart Energy area for example focusedon the latest energy-eff iciency philosophy and practices. In
addition to the display of an advanced energy management
system and monitoring equipment, it also introduced project
management and precision management methods; cuttingedge AI energy-eff iciency technology was also on display toshow how AI algorithms were used to optimize parameters andrealize energy-efﬁciency targets.

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5.3 Affordable & Clean Energy
As a supplier of energy solutions, AUO is actively supporting green transformation in the industry through its R&D and innovations in key ﬁelds. AUO therefore uses its extensive experience, technology,
and complete eco-system to supply the most reliable and diverse selection of products and services. Now that Taiwan is committed to Net Zero by 2050, AUO will strive to build the foundations forcompetitiveness, circular sustainability, safety and resilience. We will assist the industry with improving its renewable energy independence and diversity, and play a key role in promoting energy
transformation.

5.3.1 Energy Business Development
Taiwan is an island blessed by the bounty of nature. Innovative PV technologies have now reached maturity so generation costs are gradually coming down. PV also has many applications in everyday
life so it now has a key role to play in Taiwan's energy transformation. AUO has many years of experience in running PV businesses. We’ve expanded beyond PV module manufacturing into power plant
construction to provide total solutions for energy production, energy storage, energy conservation, and energy management. We actively build reliable and sustainable clean energy. We also workthrough supply chain partners and sharing of resources to construct ﬁve core competencies, four key markets, and three strategic services.

Five Core Competencies and Four Key Markets

Three Main Services
Diverse Energy System Materials

Solar module
Packagecomponent
Niche module

Businesssustainability

EnergyManagement
Ability

Building
photovoltaics

Inter-disciplinary
integration
ability

Construction
quality andservicecustomization
ability

Projectmanagement
ability

Power plantdevelopment andconstruction
Energy storage
planning andconstruction

Harness outstanding R&D capability to supply industr yleading products and materials; integration of supply chain andcollaborate with well-known international partners to supply
diverse products for different market applications

Power Plant Construction and Operation Services
Combine resource integration with AUO’s advantage intechnology and experience to provide high-performance, highquality power plant design, construction and operation solutions
based on customer requirements
Smart DevOps
EnergyManagement

Smart Energy Management
Introduction of AI for software/hardware products to provide
customers with optimal power operation strategies and smart
green energy management

AwardsThe SunSteel can flexibly be used in various buildings and blend in seamlessly. It has received certif ications f rom Germany's
Rheinland IEC 61215 and IEC 61730, as well as VPC safety performance and weather resistance. Not only can it generate green
electricity, but it can also reduce indoor temperatures by more than 3 degrees, contributing to the goal of building carbon
reduction. The modular technology of solar modules and peak wave plates greatly simplif ies the installation complexity of
traditional photovoltaic mounting systems. Not only does it save on the use of system bracketing, but it also allows for quick
installation on-site, reducing work hours and maximizing power generation beneﬁts.

AUO Energy
Business website
energy.auo.com

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5.3.2 High-Quality Solutions
AUO expanded from PV module manufacturing into the power plant investment, construction, operation and maintenance. The completion and connection of our first rooftop PV plant in 2012
generated public interest and led to our peers following our lead. Since then, we have continued to build up our ability to provide general contractor services on PV projects for everything fromdevelopment, design, purchasing to construction. The variety of energy system materials provided by AUO along with its expertise and experience in power plant construction, maintenance, and energy
management means we can offer customers high-quality, high-performance, integrated and customized total solutions. In addition, we are also moving aggressively into the low-carbon building
industry by integrating PV applications with architecture. In this way, the urban blueprint of energy self-sufﬁcient buildings can be realized.
Material Topics

Shipping of modules required by the PV market

Diverse and High-performance Energy
System Materials
AUO supplies a complete range of mono-crystalline Si modules. The multibusbar half-cut module incorporates climate-resistant design to block out
moisture. It is also resistant to salt-fog corrosion and Level 17 wind gusts,
making it suitable for windy, moist and salt fog environments. In 2021, weformed a formal partnership with Longi, a leading international vendor, tointroduce the mono-crystalline PERC multi-busbar high-efﬁciency module.
We can now offer an even greater range of high-quality solutions for green
electricity markets. PV module shipments reached 472 MW in 2023.
Material Topics

Total Provider of Power Plant Construction and Operation Services
AUO is committed to promoting green energy and living based on high quality and safety standards. Since 2011, we
have built 516 MW of installed capacity at 409 power plants throughout Taiwan. These included 181 MW in rooftop
projects, 318 MW on ground-side projects, and 17 MW on ﬂoating projects. Project sites ranged from advanced factories,
agriculture and livestock industry, car park canopies and ground-side installations. Total annual power production
is approximately 650,000 MW, sufficient to power 160,000 homes and equivalent to a carbon reduction of 325,000
metric tonnes Co2e per year. We now not only possess extensive experience with factory rooftop and ultra-high-voltage
ground-side transformer stations, but have also won recognition from the Taiwan Excellence Awards and TOP Solar
Awards. We are now ranked among the Top 5 energy companies in Taiwan.

Power Storage and Residential Energy Solutions

Smart Energy Management System

AUO Energy Shop

The energy transformation is accelerating the adoption of energy storage and powered vehicles such as electric vehicles and charging
pillars. AUO Energy Business is now investing in the EnLink energy management system for software and hardware integration.
The system is equipped with a range of powerful micro-grid controllers that can collect energy data from energy storage systems,
PV systems, EV charging pillars and other devices. The data is compiled at a higher level by the energy management system thanpresented through a mobile app or tablet for visualized management. A Instantaneous power consumption is simulated in a dynamic
manner along with a clear representation of energy ratios. The user can engage in remote monitoring and dispatching to effectively
reduce energy consumption, improve self-consumption of green electricity, and optimize electricity costs. For enterprise andresidential users, it offers an energy management system that is more current, appropriate, and efﬁcient. AUO carried out 5 energy
storage projects in 2023 and these are expected to be progressively connected to the grid in 2024. In addition, we are also using orexpertise and experience in software-hardware integration to assist customers with realizing their roadmap for energy transformation.

Energy Management Total Solution
Self-consumptionof solar power

SunVeillance Smart cloudmonitoring for solar
power

Energyvisualizationand storage

EnLinkGreen electricity
trading

Green electricity trading
management platform

Achieve RE100
progress

Smart energy management
for solar energy storage andcharging

100% green
electricity

During the service process, the AUO energy team
noticed that customers were increasingly looking for
PV power plant components and having diff iculty
meeting that demand. In the spirit of “one-stop shop”,
the AUO Energy Shop was set up to provide an onlineto-offline (O2O) omni-channel platform. The Malloffers product packages for PV modules, monitoring
software/hardware, inverters, relays, wiring & cable, andenvironmental monitoring. It also provides a dedicatedconsulting channel for private users. Through the Mall,customers have f irst-hand access to new productlaunches and promotions. The integration service
quality component brands and products help toincrease penetration of green energy.

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Growth

5.3.3 Green Energy Compatibility
and Inclusion
AUO worked closely with our industry partners to develop even more highquality products and solutions; we also follow the three axes of environmental
compatibility, local inclusion, and sustainable development by actively
engaging with charitable activities. We provide local residents near PV plants
with subsidies for counseling on health, economic, industry, environment, andecology. We hope to help bring about a balance between people, environment,
ecology and development.

5 AgileInnovation

Subsidiary

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Sheet

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Energy Taiwan 2023
For Energy Taiwan 2023, AUO chose “Building a Sustainable,
Low-carbon Net Zero City through Building-integrated
Photovoltaics” as its theme for exploring the possibilities of net
zero through innovative technologies and total green solutions.
Highlights of the exhibition included BIPV building materials,
hand-picked system packages, energy management software/
hardware integration, clean energy applications, and energy
efﬁciency solutions. The display not only attracted a constantstream of interested buyers and visitors but also promoted
mutual learning and exchange between industries.

Energy Taiwan 2023 Highlights Video

Sustainable
development

Environmental
coexistenceLocalinclusion

Local Inclusion

Coexistence and inclusion
People, environment ecology,
development

Industry-University Exchange
Building-integrated Photovoltaics Conference
As part of its expansion into architecture, AUO Energy Business held the“Building-integrated Photovoltaics (BIPV) Conference” at its Taichung site.
Industry pioneers were invited to share their experience with low-carbon
buildings based on the philosophy of resource sharing. We hoped the conference
will lead to joint cooperation on energy conservation, carbon reduction, andgreen energy, or even realize the vision of zero-energy buildings. The Symposiumcompiled suggestions from the academia and invited experts to give topicallectures on low-carbon building pathways and techniques, and the inﬂuence andimportance of PV systems in net-zero buildings. At the same time, 10 reputablecompanies with a long history in Taiwan were recruited to exhibit and sharethe latest technologies and products. Through the Symposium, AUO was able
to network and collaborate with more than 300 partners to develop even more
BIPV solutions, launch a joint effort to build the next generation of smart green
buildings, and work together to enhance the resilience of the green energy
industry.

Environmental
Sustainability

Industrial
EconomyCulturalLegacyCommunity
Engagement● Industry-governmentuniversity collaborationand exchange● Promotion ofenvironmental education
knowledge● Ecological andenvironmental
monitoring● Community support
station● Long-term care andgroup meals for seniors● Create and mentor local
employment● Liaise with experts andacademics to develop
preservation plan
● Revitalization ofheritage structures● Implementation ofﬁeld research site
● Tribal craft legacy● Caring for rural students● After-school tutoringfund● School landscaping● Adoption and cultivationof young national
athletes● Promotion of bilingual
education in indigenous
townships

Adoption and Cultivation of Young National Athletes
Domestic sports resources are mostly channeled towards the cultivation of tier-1 national athletes and this may
indirectly put pressure on resources for young people. In 2023, StarShining Energy began actively promoting
the “circle of philanthropy.” By combining philanthropy with sports and launching a sports support strategy
based on in-depth engagement, the company sponsored outstanding young athletes so they could put theirtalents to good use, change their fate, and represent their country on the international stage.

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Rural Student Tutoring Fund

Ecological Research Project

StarShining Energy’s core business is PV power plant investments and operations. The Company
also takes an interest in local education. Since 2022, StarShining has conducted popular scienceeducation at Sialun Elementary School and Dinghu Elementary School. Teachers and students
were guided through an= scenario-based environmental education curriculum involving
interactive games, team competitions, prize quiz, and hands-on experiment. In 2023, donations
were made to the tutoring fund at Yiwu Junior High School and Wenguang Elementary Schoolin Kohu Township, Yunlin County to help students concentrate on their studies and improve theiracademic performance. More than 280 local students beneﬁted from the donations.

Shengfeng Environmental and Green Energy Park is owned by StarShining. This environmental
and ecological ﬁeld research site hosts the ﬁrst ﬂux tower in Taiwan to be constructed at a PV site.
A memorandum of understand and long-term industry-university collaboration project was signedwith National Dong Hwa University during project development. The Center for Interdisciplinary
Research on Ecology and Sustainability would carry out research on plants, animals, soil, andpollination within the park. A ﬂux tower would also be set up for experimental purposes. In addition
to realizing the exchange of information between the industry and universities, academic researchand science-based evidence will hopefully clarify how the construction of a PV site may impact
on the existing ecology. The information can then be used to set up a platform for community
engagement and a guide for policy development.

Green Energy Park
AUO not only provides total renewable energy solutions. In keeping with our philosophy of sustainable green energy that puts
people and the environment ﬁrst, AUO is also continuing to support the government’s green energy policies, engage with the local
community, and create local job opportunities in order to make a contribution to sustainable energy development in Taiwan.

Grid connection andpower transmission in 2023
Yunlin - Maocheng Green
Energy Education Park

Grid connection and powertransmission in 2022
Hualien - Shengfeng Environmental
and Green Energy Park

Installed
capacity

75 MW

Installed
capacity

178 MW

Maocheng Environmental and Green Energy Park is located southwest of Provincial
Highway 17 and the West Coast Expressway (Provincial Highway 61) in Kouhu
Township, Yunlin County. The 163 hectares project site had been assessed as nonarable due to severe soil salinization. 178 MW in installed capacity was constructed
and connected to the grid in June 20223. The daily power output of 623,735 kWh is
expected to make a substantive contribution to Taiwan’s power grid. Landscaping was
carried out throughout the site with provisions for a forest reserve, Oldham Elaeagnus
rehabilitation corridor, forest timber reclamation center, water bird observationarea, agro-photovoltaics (Agro-PV) demonstration area. and Bald Cypress eco-pond.
An expanded green belt of 20m was also
retained. The water bird observation area
was set up in collaboration with the Taiwan
Biodiversity Research Institute of Ministryof Agriculture. Greenhouses were built in
the agro-PV demonstration area and an
industry-university collaboration contract
was signed with National Chung Hsing
University for carrying out research into
agricultural specialty products with higheconomic value. We will also continue
to provide local farmers with technicalassistance in order to fulf ill our corporatesocial responsibility and promote industrialeconomic development. At the same time,
grassroots environmental education has
been established in the Kouhu region.
We are also promoting and sponsoring
the after-school tutoring funds and green
school landscaping projects at Wenguang
Elementary School and its sub-schools, andYiwu Junior High School.

Installed
capacity

Pingtung - Shengli Cultural
Heritage and Green Energy Park

7 MW

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Subsidiary164

AUO Crystal Corporation
AUO Crystal Corporation (AUO Crystal) is a subsidiary of AUO Corporation, possessing advanced
silicon wafer manufacturing technology. In collaboration with international corporations, AUO Crystal
develops and manufactures materials for photovoltaic and semiconductors and also offers processing
services. The company provides customized solutions for silicon-based materials, keeps innovating tocreate value for clients and harnesses sustainable environment.

Company name

AUO Crystal Corporation

Founded in

22nd May 2009

ChairmanShih-Kun Chen

Headquarter
Main product and technology
Operation

Taiwan (Taichung), Japan (Tokyo, Kochi)

Websitehttps://www.auocrystal.com/
4,814,906

Income After Tax (NTD thousand)-398,798

Photovoltaic● Semiconductor Silicon
Wafer● Photovoltaic
Monocrystalline Ingot● Semiconductor Silicon
Materials● Photovoltaic
Monocrystalline Wafer

AUO Crystal has been deeply cultivating monocrystalline silicon materials for more than ten years. It has
the ability to develop and manufacture high-quality monocrystalline silicon wafers, and it constantly
improves in material research and development and process technology and closely cooperates withcustomers. Besides developing items that comply with market trends and demand, it is also committed
to improving product performance and enhancing carbon reduction beneﬁts. AUO Crystal implements
strategies of technical innovation and market layout, both maintaining competitiveness and contributing
to the mitigation of global warming.
❶ Silicon crystal process optimization: By continuously improving the manufacturing process, thephysical properties of silicon crystals are improved to enhance the overall quality.
development of new types of silicon crystal materials, including super-large silicon ingot or otheradvanced forms of silicon crystals, to improve the performance and application range of materials.

MarketLayoutTechnological innovation and market strategy,
Sustainable products

Semiconductors

External Assurance: All relevant data have been veriﬁed by third-party
organizations and presented using internationally recognized indicators. ISO
14064 GHG emissions were veriﬁed by DNV based on ISO 14064. GRI was assured
by KPMG based on ISAE 3000.

Technical❷ New type of silicon crystal materials research and development: Invest in the research andInnovation

1. Product & Technology
Material Topics

Contact: HR@auocrystal.com

1.1 Technological Innovation & Market Strategy

No. 335, Sec. 2, Houke Rd., Houli Dist.,
Taichung City, Taiwan
PV Mono Ingot & Wafer, Semi Parts &Wafers

Revenue (NTD thousand)Scope of the Report: January 1, 2023, to December 31, 2023

Silicon Materials● Puriﬁed Silicon Powder(Note 1)

❶ Expand application scope: Seek to expand the market in different application ﬁelds, such as
semiconductor manufacturing and automotive batteries, to reduce the risk of a single market.
❷ International market expansion: Cooperate with global customers to establish a solid international
supply chain.
❸ Cooperation and mergers: Cooperate with other technology companies or carry out strategic mergers
to strengthen technical capabilities and market position.

1.2 Sustainable Products
Sustainable Agricultural Fertilizer
AUO Crystal is aligned with SDG 12 - Sustainable Consumption and
Production, by recycling the silicon by-products produced during the
manufacturing process into fertilizers. By cooperating with local farmers andsmall-scale farming partners, we provide high-quality agricultural materials
and engage in technical exchanges. This proves beneficial for plant healthand reduces disease indices, also increasing rice production by around 12%.
In addition to replacing chemical fertilizers and exemplifying the value of thecircular economy, it signiﬁcantly reduces environmental damage.

Hazardous Substances Management
Note 1: Silica powder is a sub-nanometer ﬂake-like material, with high purity and stable quality.
It can be applied in metal smelting, ﬁreproof materials, silicon methanes, and productionof lithium battery anode materials.

GRI 416-1

All of AUO Crystal's products have been tested by a third-party independent organization and do notcontain harmful substances. They comply with RoHS, REACH, and customer requirements

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2. Sustainable Management
Material Topics

Business risk, Sustainable governance operation, Stakeholder, Supply chain management

2.1 ESG Committee
To reference global business development trends, promotional plans effectively, integrate horizontal resources, enhance the management efﬁciency of social responsibility, meet the expectationsof stakeholders on environmental protection, social care and corporate governance, and ensure the sustainability of corporate operations, AUO Crystal established the ESG committee in 2022. The
committee is chaired by the chairman of the board, with each chairman of the groups being appointed from the ﬁrst-level executives. Under the committee, general affairs are arranged, and a secretary
office is established to coordinate committee information and operations. The committee is divided into several groups including the Sustainable Technology Group, Sustainable Manufacturing
Group, Photovoltaic (PV) Business Group, Semiconductor (SEMI) Business Group, Sustainable Supply Chain Group, Corporate Care Group, and Risk Governance Group. Through monthly meetings, thecommittee sets goals and tracks progress, connects internal departments and allocates resources to jointly implement ESG action plans.
ESG Committee
Secretary ofﬁce
Sustainable Technology

Sustainable Manufacturing

PV Business

Sustainable Supply Chain

SEMI BusinessCorporate Care

Risk Governance

Sustainable management
With a mission of sustainable development, we leverage core technologies to enhancecompetitiveness and address opportunities and challenges. We strengthen resilience to achieveeffective operational indicators.

2.2 ESG Guiding Principles: CSR3
The operation of the committee is guided by the “CSR3” principles, which comprises Corporate Governance, Social Engagement, Reduce, Recycle and Reuse.

C

Corporate Governance

Law compliance and businessintegrity
Valuing shared value and giving backEffective risk management maintains
operational stability
Encouraging the research anddevelopment of innovativetechnologies

S

Social Engagement

Promoting human rights andemployment freedom
Upholding the commitment tosustainable development
Providing a safe, healthy andharmonious workplace environment
Cultivating social culture and publicwelfare concern

R

ReduceImproving production efﬁciency
Designing energy-saving
processes and equipment
Implementing energy
management

R

Recycle &

R

Reuse

Committed to green production
Creating recycling use to reduce
waste and create value
Actively preventing pollution andreducing environmental load

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2.3 Stakeholder Engagement
Stakeholder Engagement Achievements
Stakeholder

GRI 2-29
Communication Channels

Communication Topics

2023 Achievements

By irregularly participating in seminars and symposiums,
consulting with experts, and gaining external professional
perspectives, to quickly grasp industry trends and key
regulations.

Symposiums
Conference
External communication
mailboxIndustry-academia
cooperation
Environmental safety andhealth practices
Regulatory consultation

Participated in 49 governmenthosted symposiums/conferences
Cooperated with government
agencies for supervision andauditing for 8 occasions

Suppliers

Manage suppliers and subcontractors based on the ESG concept,
and ensure the quality of cooperation through capability
assessment, regular audits, and evaluations.

Project meetingsOn-site exchanges
Supplier audits
Integrity mailbox

Sustainable development
Circular economy
Operational risks

Supplier QBR evaluation score of
78.91

Customers

Proactively respond to customer needs, fully understandcustomer perspectives on ESG issues, analyze international
implementation trends, actively participate in customer
implementation plans, and incorporate new perspectives andpractices into AUO Crystal's management system.

Project meetings
Customer satisfaction surveys

Sustainable products

Average customer satisfaction rateof 80.9%

NGOs

Proactively collaborate with NGOs and social enterprises topromote projects, combining their expertise and passion to
expand project inﬂuence.

AUO Foundation
External communication
mailbox

Environmental education
promotion

1 Green Party event
1 FNG generational design waste
reduction activity

Media

Actively communicate the progress of sustainable businessdevelopment to relevant stakeholders through diverse social
media channels.

Exhibitions
Press releases
Social media

Operational performance
ESG brand

1 YouTube video

Employee

Care for employees' physical and mental well-being, and pay
attention to employee welfare, shaping a friendly workplace.
Create an internal sustainable environment and establish aculture of sustainability in AUO Crystal.

Internal announcements
Club activities
Labor-management meetings
Employee welfare committee
Internal communication
mailboxBusiness brieﬁngs

Operational status
Social participation
Employee care

4 labor-management meetings
4 employee welfare committee
meetings
1 business brieﬁng
3 club activities
Sustainable series courses

Investors

Proactively communicate with investors based on principles
of openness and transparency, demonstrating transformation
capabilities and sustainable performance. Actively communicate
with investors to update them on operational status and reduce
concerns.

Annual board meetings
Financial reports

Operational performance

Disclosed Financial informations

Student

Actively recruit outstanding talent through campus recruitment.

Campus recruitment
External communication
mailbox
Job search website

Employment and beneﬁts
Brand image

Participated in 2 campus
recruitment events

AUO Crystal's manufacturing site includes Holi and Kochi in
Taiwan, and continuously cultivates community relationships,
maintaining good interaction with local residents throughcommunity activities.

Regular on-site visits and care
Irregular community events
External communication
mailbox

Promotion of agricultural
products
Site environmental
maintenancecommunication

4 agricultural product grouppurchases
4 cases of emergency relief

Government/
Academic
Experts

Neighborhood andcommunity

Relevance and Collaboration Focus with AUO Crystal

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

168

Everyone ESG Training
The ESG Committee produced “AUO Crystal X ALL in ESG” e-Learning materials, conveying the urgent concept of asustainable environment, and established the perception that everyone, every day, and everything is closely related tosustainability. The content of the materials covers elementary education on sustainable development, AUO Crystal's goals
and actions, creative examples sharing, and continuous participation of colleagues. Within two months of launch, all 741
members completed the training.

2.4 Risk Management
Management Organization and Policy

Information Risk Management

GRI 2-12

AUO Crystal establishes a risk governance group under its ESG committee, with the Chairman
acting as the highest manager. To enhance corporate governance and risk management
capabilities, AUO Crystal continuously optimizes risk management policies and procedures. The“Risk Management Policy and Procedure” are in place to ensure the effective implementation of risk
management practices.

Supply Chain Management

GRI 2-6

AUO Crystal manages its suppliers and contractors based on the three major aspects of ESG, which
includes quality/service level, green products, operational manufacturing, cost, environmental safety
and health risks, labour management, and ethical standards. The company assesses the capabilitiesof new suppliers/contractors, and only those who pass the audit can become partners. For existing
partners, regular audits and evaluations are conducted to ensure the quality of cooperation. AUO
Crystal abides by the highest standards of business ethics in all transactions with partners and has
set up a mailbox for reporting illegal activities: integrity@auocrystal.com.

Supply Chain Formation
Type

Number of suppliers

PV

345

SEMI

83

Siliconmaterials

32

Facility
construction

68

Waste

8

In order to minimize the potential leakage of ofﬁcial secrets and enhance the overall securityof the company's information environment, AUO Crystal has implemented a number of
preventative measures to raise employees' awareness of information security and avoid losses
due to personal negligence. The measures implemented in 2023 include seven announcements
related to information security; the introduction of multi-factor authentication, along with thelaunch of an online course called e-Learning; and conducting exercises on social engineering
fraud prevention, with a total of 788 participants and a pass rate of 95%.

Multi-factor Authentication
AEP Password Lookup
Log into the AEP system
to view the Virtual
Private Network (VPN)
password

VPN Login
Use the VPN password
to log in

Supply Chain Risk Management
Subject

Management Practices

New suppliers

Sign three major documents(Integrity/Conﬁdentiality/
Non-infringement)

Existing
suppliers

Participate in quarterly
business review meetings(QBR) or semi-annual
evaluations for key materials

Dial the dedicated line
and log into the VPN
within 5 minutes

Dial-upConnect thecompany's personal
computer or mobile
device, open the
remote desktop
connection program, andlog into the company's
personal computer.

Complete

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report169

3. Environment Sustainability
3.1 Environmental Data Disclosure
Material Topics

Circular and clean production, Climate change

ReduceEnergy Consumption
Item: Unit: GJ

2023

2022

2,633

2,338

Nonrenewable 269,953

379,761

Renewable

Total energy
consumption
Purchased electricity
consumption
Self-Generation and
Parallel Sale
Self-Generationelectricity consumption
Purchased electricity
consumption
Purchased steam
consumption
Natural gas
Liquid petroleum gas(LPG)

Energy Intensity

GRI302-1

Renewable

Nonrenewable

0

0

2,340

2,338

293

0

269,858

379,651

0

0

0

0

0

0

Diesel95

110

Gasoline

00Note: The conversion coeff icients of natural gas, liquef iedpetroleum gas, diesel and gasoline are referred to thecaloriﬁc value data announced by the Bureau of Energy,
Ministry of Economic Affairs

ReduceProduct Energy
Consumption

GRI 302-5

Reduce Energy Consumption

GRI 302-3

Item

2023

2022

Electricity consumption
per output sheet
substrate area (KWH/m2)

20.19- (Note)Energy consumption per
output sheet substratearea (GJ/m2)

0.07

Electricity consumption
per unit revenue(KWH/NTD 1,000)

15.59Electricity consumption
per unit revenue(GJ/NTD 1,000)

0.06

GRI 305-6

2022

Energy saving rate

1.08%

0.83%

GRI 305-5

In 2023, the total greenhouse gas emissions decreased by 16,681.01 metric tonsof CO2e compared to 2022.
15.00

Item: Unit: ton CO2e

2023

2022

Scope 1116.57149.55

Scope 2

37,030.46

53,678.49

Scope 3

Not yet investigated

Not yet investigatedIntensity (Note)

0.008

0.01

0.05

GRI 305-7

Item (Unit: CFC-11 equivalent tonnes)

2023

2022

ODS

0

0

Crystal ingot

Increase 34.77%

NOx

0

0

Wafer

Increase 23.53%

SOx

0

0

POP

0

0

VOC

39.18

46.50

HAP

0

0

PM

0.032

0.05

Note: Compared to the baseline year of2022, the decrease in production
has led to an increase in energy
consumption per unit.

2023

Emissions- (Note)Energyconsumption

Product

Item

Note: The calculation method is the total amount of electricity saved by annual powersaving measures in Taiwan's production area/ the actual annual power consumption.

Note: Starting from 2023, the calculation will be based on
the unit area of output, due to different calculation
methods, hence the information from 2022 is notdisclosed.

Air Pollutant Emissions

GRI 302-4

Note: The calculation method is (Scope 1 + Scope 2) /annual operating revenue (NTD 1,000).

Recycle & Reuse
Materials Used
(Volume)Item

GRI 301-1

Type

Tons

Nonrenewable

191.89V-polyMaterials Used
(Percentage)
Item

GRI 301-2

Type

Tons

Nonrenewable

38.67%

Renewable

61.33%

V-polyRenewable

304.28

CONTENTS

1 Business
Operation

Water Withdrawal

2 Sustainable
Management

3 Environmental
Sustainability(Unit: 1,000m3)

Surface water(including rainwater)

493.60

Total

Waste

Nonhazardous
waste

726.92COD (tons)

78

BOD (tons)6

SS (tons)

21

Waste
generated0

1,079.28(Unit:
1,000m3)

All region

2023

2022

Surface water(including rain water)

Surface water(including rain water)

0916.14

Waste
Waste
directed togenerateddisposal

163.14395.77

Type (Unit: tons)

Disposal

571.250.65

1,742.31

0

0

0

0

0

0

0

0

0

0

0

Landﬁlling

0

0

0

0

Other disposal operations

0

0

0

0

Total

0

0

0

0

Preparation for reuse

0

0

0

0

Recycling

0

0

0

0

Other recovery operations

0

0

0

0

163.14163.14244.09244.09163.14163.14238.47238.47

0

0

5.62

5.62

Landﬁlling

0

0

0

0

Other disposal operations

0

0

0

0

Total

916.14916.14

1,498.22

1,498.22

Preparation for reuse

0

0

0

0

Recycling

916.14916.14

1,498.22

1,498.22

Other recovery operations

0

0

0

0

Incineration(with energy recovery)
Incineration(without energy recovery)

Total

244.09Incineration(with energy recovery)
Incineration(without energy recovery)

Nonhazardous
Recovery
waste

2022

0

0.65

Nonhazardous
Disposal
waste

2023

GRI 306-5

Total

0

1,498.22

GRI 306-4

OffsiteWaste
directed todisposal

Recovery571.25

Total

Waste
divertedfromdisposalHazardous
waste

Total

OffsiteTotal

GRI 306-5

0

Total

Fresh water

395.77

Item

Hazardous
waste

170

2023 AUO Sustainability Report

GRI 303-4

2022
Waste
divertedfromdisposalAppendix

Waste Diverted from Disposal & Directed to Disposal

GRI 303-4
395.769

GRI 306-4

Fact
Sheet

Fresh water

726.92

2023

Hazardous
waste

Total

Waste water (1,000 m3)

GRI 306-3

Item(Unit: tons)

Item

Surface water(including rainwater)
Fresh water

493.60

Water Pollutant Discharge

Subsidiary2022

Fresh water
All region

5 AgileInnovation

Water Discharge

GRI 303-3
2023

Item

4 Inclusive
GrowthCONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

171

3.2 Enhancement Project & Achievement
Installation of Solar Energy Generation Devices on Rooftops

Promotion of Plastic Reduction AwarenessAccording to the “Regulations for the Management of Setting up Renewable Energy
Power Generation Equipment of Power Users above a Certain Contract Capacity” AUO
Crystal has completed the construction of rooftop solar power generation equipment
totaling 970KW in 2023. It has fulﬁlled its obligation to use renewable energy ahead ofschedule for major power users and effectively provided green electricity for in-houseuse.

AUO Crystal arranges a mobile “PET Bottle Recycling Processing Machine - Hao Gui Su
Vehicle” at the factory. Under the enthusiastic explanation of volunteers, through a fun
and simple way, colleagues put the used PET bottles into the Hao Gui Su Vehicle bytossing bottles. The event promoted colleagues to understand the concept of circularregeneration, implementing proper classiﬁcation to achieve resource reuse, reducing
the impact on the environment.

Process-derived Waste Reduction and Value Innovation
To achieve sustainable resource reuse, AUO Crystal prioritizes source
reduction (Reduce), reuse in the process (Reuse) principles during waste
disposal, and then produces resource-by-products. It then commissions
qualif ied businesses to carry out recycling (Recycle), and f inally treats it
by incineration or landf ill to ensure the effective use of resources and thedevelopment of circular benef its. In 2023, 32.90 tons of ABS BEAM wererecycled, saving NTD 427,600 in treatment costs.

Waste beam

Manual sorting/mechanicalpolishing

Mechanicalcrushing/
shredding

Floatation
separation/
manual sorting

Plasticreuse● ABS plastic pelletizing
After being made into pellets,
ABS can be used for automotive
parts: TV casing, refrigerator
casing, hairdryer casing,electronic consumer goods,
toys, outdoor fences, etc.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4. Inclusive Growth

Fact
Sheet

Subsidiary

Appendix

AUO Crystal values its employees and adopts a diversiﬁed salary and beneﬁts system, offering competitive salarylevels. Depending on the company's operation status and individual performance, salary adjustments and bonus
distributions are made.

Employee Diversity

GRI 401-2

Item
Childbirth subsidy
Childcare subsidy
Funeralcondolences
Wedding subsidy
Emergency assistance
Hospitalization
condolences
Group insurance

1722023 AUO Sustainability Report

GRI 405-1

Talent recruitment and retention

Employee Welfare

Parental Leave

5 AgileInnovation

Employee Remuneration

4.1 Disclosure of
Employee-related Data
Material Topics

4 Inclusive
GrowthGlobalTotal

Persons

13

13

NTD

28,00028,000

Persons

104

104

NTD

232,000

232,000

Persons

72

72

NTD

72,00072,000

Persons

15

15

NTD

45,00045,000

Persons

0

0

NTD

0

0

Persons17

17

Category

Item

Male

FemaleUnder 2939~49

Over 50

Physical andmental disabilities

Total

Total employees (%)

80.97%

19.03%

15.65%

78.68%

5.67%

0.81%

Junior level
management (%)

80.77%

19.23%

092.31%

7.69%

0Mid-level
management (%)

100.00%0072.22%

27.78%

0

Senior level
management (%)

92.31%

7.69%

0

23.08%

76.92%0Management (%)

89.47%

10.53%

070.18%

29.82%

0Indirect labor (%)

79.17%

20.83%

2.16%

81.25%

12.08%

1.67%

Direct labor (%)

81.84%

18.16%

13.50%

77.45%

2.59%

0.40%

Management

Level

Total
Employee structure

Employee & Contractor Covered by Occupational Safety and
Health Management System

GRI 403-8

NTD

17,00017,000Item

Persons

Percentage

Persons752

752

Employee

741

100%

NTD

3,277,075

3,277,075

Contractor

685

100%

GRI 401-3

Work-related Injuries

Item

Male

FemaleNumber of employees eligible for parental leave

39

21

Total number of employees actually using parental
leave

7

6

The number of employees expected returning to
job after parental leave during the year

6

8

The total number of employees actually returning
to job after parental leave

4

2

The total number of employees returning to job andstill on the job for 12 months after parental leave

1

Reinstatement rate after parental care leave
Retention rate after parental care leave

GRI 403-9

Item

Employee

Contractor

Total

Male

Female

Total

Male

FemaleNumber of occupational injury deaths

0

0

0

0

0

0

Ratio of occupational injury deaths

0

0

0

0

0

0

Number of serious occupational injuries

0

0

0

0

0

0

Ratio of serious occupational injuries

0

0

0

0

0

0

3

Number of recordable occupational injuries

2

2

0

0

0

0

67%

25%

Recordable lost-time injury frequency rate

1.37

1.70

0

0

0

0

100%

60%

Working hours

1,455,056

1,176,144

278,91224,52822,0762,452

Note: In 2022, there was 1 male employee who actually returned to work afterparental leave, and 5 female employees.

Note: The calculation is based on the average number of daily applications, with one form representing 2 days, 8 hours perday, and 3 people per form.

CONTENTS

1 Business
Operation

Work-related Ill Health2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth

Employee

Contractor

Total

Male

Female

Total

Male

Female

0

0

0

0

0

0

Number of occupational disease deaths

0

0

0

0

0

0

Ratio of occupational disease deaths

0

0

0

0

0

0

Main types of occupational diseases

0

0

0

0

0

0

Number of recordable occupational diseases

Subsidiary

Fact
Sheet

Average Hours of Training

GRI 403-10

Item

5 AgileInnovation

Programs for Upgrading Employee Skills

GRI 404-2

AUO Crystal provides diverse learning resources and channels, including new employee
education and training, as well as a variety of courses in management, professional
development, quality, and personal growth. In addition, we have designed a GAP table basedon job positions, allowing employees to choose their own professional development paths
and encouraging cross-functional learning. Furthermore, in response to global sustainable
development, we place greater emphasis on training greenhouse gas inventory seed personnel
and promoting ESG sustainability awareness and commitment among all employees.

Appendix2023 AUO Sustainability Report173

GRI 404-1

RegionIndirectlabor

Direct labor

Management

Nonmanagement

FemaleMale

Global

2,613

482

862

2,233

886

2,209

Percentage of Employees Receiving Regular Performance &Career Development Reviews

GRI 404-3

RegionIndirectlabor

Direct labor

Management

Nonmanagement

FemaleMale

Persons

240

501

57

684

141

600

Percentage

32.39%

67.61%

7.69%

92.31%

19.03%

80.97%

4.2 Social Engagement
Adoption of Gaomei Wetlands

Promote Food and Agricultural Education

AUO Crystal Happiness Seed Club and the TaichungCity Government's Environmental Protection Bureau
have signed a coastal adoption agreement to adopt
the Qingshui Coast for sustainable cleanup andmaintenance to keep the coast of Taiwan beautiful
for a long time. Passionate volunteers participate inocean protection, sweating under the blazing sun
to remove the environmental garbage. The event
cleaned up about 81 kg of general garbage andrecyclables, restoring the pristine appearance of theGaomei Wetlands beach.

Instilling Environmental Values f rom a Young
Age To promote food and agriculture educationand implant sustainable environmental
knowledge and ideas, AUO Crystal collaborates
with universities to introduce beetles to nearly
50 children in the Happiness Seed Club, andexperience DIY beetle eco-boxes. They use waste
wood, space bags, and fallen leaves compost,
and other agricultural waste for recycling.
Through these entertaining and educational
activities, they cultivate respect and gratitude
for food, producers, and the environment.

Group Buying of Agricultural Products
To reduce carbon footprints and continue giving back to the community, AUO Crystal has been working with local farmers' associations and small farmers
to group-buy agricultural products. In 2023, cooperation will be established with local farmers from Houli Farmers' Association, Gaoshu in Pingtung,
Lishan in Taichung, and others to group-buy holiday and everyday fruits including snow jujube, honey pear, snow pear, mountain honey peach, red jadehoney peach, sugar tangerine, organic rice, and pastured eggs. A total of 102 people participated, with a subscription amount of about NTD 140,000.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

AUO Display PlusAUO Display Plus is a global leading supplier of industrial and commercial application displays, providing
customers with a variety of customized products. As an afﬁliate of AUO corporation, AUO Display Plus
draws f rom over 20 years of display technology and professional experience, driving AIoT innovation
and actively deepening its reach into vertical f ields such as enterprise, education, healthcare, andtransportation. This ensures intelligent display solutions are ubiquitous.

Company nameAUO Display Plus

Founded in28th May 2020

ChairmanFrank Ko

PresidentFrank Ko

Headquarter

No. 1, Gongye E. 3rd Rd., East Dist., Hsinchu Science
Park, Hsinchu City 300091, Taiwan (R.O.C.)

Main product and technology

Industrial and commercial application displays,
intelligent solutions for ﬁelds such as enterprise,
education, healthcare, and transportation

Operation

Taiwan (Headquarter), United States, Netherlands,
Japan, China, Canada

Websitewww.auodplus.com/en-global

Innovative Products and Services in
Response to SDGs
Real-time 3D Solutions for Surgical Robots
AUO Display Plus, together with its partners, has developed the SurgiEyes solution,
speciﬁcally designed to provide real-time and immersive 3D imaging for robotic surgery.
With AUO Display Plus’s uniquely developed display, its 3D vertical wide-view technology
enables the team to see the correct 3D image whether standing or sitting. Deep Red
Color Accuracy technology allows the medical team to clearly see easily overlooked details
such as tissue structures or edges. Taking da Vinci surgery as an example, originally only
the chief surgeon was able to see the 3D live images. With the integration of AUO Display
Plus’s SurgiEyes solution, the entire surgery team can now view consistent 3D images.
This aids in focusing on lengthy surgeries and improving the quality of the operation.
Extended applications in teaching and real-time surgical discussions can help shorten thelearning curve for robotic surgery teams in training, or for doctors new to surgical robots,
contributing to the cultivation of more medical professionals.

174

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Dental Technological Digital Solutions

Pulse Diagnosis System

In 2023, AUO Display Plus established “DentLabX Co., Ltd.”, focusing on providing
dental and prosthodontic technological digital solutions, products, and services.
Their "Digital Dental Technology Management System", a digital management tool
for the entire process of prosthodontics from order acceptance, manufacture, quality
assurance to shipping, enables operators to keep abreast of operational conditions,
efﬁciently conduct quality management, understand input-output conditions, aiding
the digital transformation in the dental ﬁeld.

The pulse diagnosis system inherits AUO’s exquisite sensor technology, replicating thetactile sensation experienced by traditional Chinese medicine practitioners during the ‘lifting,pressing, and searching’ pulse taking process. This system converts traditional Chinese
pulse diagnosis into objective data, delivering reliable test results. The pulse diagnosis
system contains a highly sensitive multi-point array pressure sensor and an automaticcomputer-controlled lifting system. This overcomes the drawbacks of traditional pulse
diagnostic tools, such as time-consuming single-point measurements and inaccuracy inmeasurement locations, enabling more
precise capture of the examinee’s pulse
physiological signals. Additionally, the system
automatically generates visual and graphic
reports after the test, assisting Chinese
medicine doctors and the public in diagnosis
explanation and subsequent test result
record keeping, realizing the digitalizationand standardization of Chinese medicine
testing. AUO f irst obtained permission forthis class II medical device from the Taiwan
Ministr y of Health and Welfare’s Foodand Drug Administration. It is currently
collaborating with the National Instituteof Chinese Medicine and China Medical
University, among others.

Addressing the complex pain pointsof denture production process,with th e “Intelligent Dental Sha deMatching Function” and “DedicatedS m a r t p h o n e / Ta b l e t A p p ” , t h ro u g h
A . R .T. A n t i - R e f l e c t i v e Te c h n o l o g y,
optimizes the shade comparison
process, substantially reducing denture
production communication costs
and remanufacturing proportion,
simultaneously preventing waste ofdenture materials.

Smart Education Integration Solution

Meeting local energy efﬁciency and environmental certiﬁcation requirements
Energy efﬁciency label

Environmental label certiﬁcation

Waste Electrical and Electronic Equipment (WEEE)AUO Display Plus provides a comprehensive smart education integration solution, bringing a higher interactive,
highly applicable course model for teachers and students.
Online integrated ofﬂine hybrid teaching model,
remote classroom learning is not limited
The classroom introduces video live recording equipment
to create a zero-time difference lecture hall; all equipment is
integrated into the audiovisual master cabinet, management,
storage, and security are all in one.
For diversiﬁed courses and needs, only one key
switch is required
A wide range of course modes have been written into thesystem, one button to quickly switch modes, including
presentation mode, movie mode, computer class mode, and live
recording mode. The lecture hall is equipped with environmental
control system software, which can operate all the equipment in
the classroom on the digital podium tablet. Using preset course
modes can easily switch with one person in control.

Large-size display reduces
visual dead angles
With a large-size, non-reflective highdefinition LED display, resolving spatial
visual dead angle issues.
Rich professional lecturehall equipment
In addition to smart display equipment, italso introduces teleprompters, cameras,
and other professional presentationequipment, taking the application of thelecture hall to a higher level.

175

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

176

AUO Envirotech
AUO Envirotech, with nearly 20 years of experience in the establishment and operation of tech factories,
continually advances technology to implement the concept of a circular economy, offering solutions suchas corporate carbon management, water treatment, and smart control technology.

Innovative Products and Services in Response to SDGs
Company nameAUO Envirotech

Founded in

23rd January 2017

ChairmanHC LeePresident

HC LeeHeadquarter

9 F., No. 198, Jingmao 2nd Rd., Nangang Dist.,
Taipei City 11568, Taiwan (R.O.C.)

Main product and technology

Environmental sustainable solutions suchas water resource treatment technology
and EPC projects, energy-saving equipment
and engineering, facility intelligent
management, and carbon management
platforms.

Operation

Taiwan, China(Suzhou, Kunshan)

Websitehttps://www.auoenvtech.com/

Water Resource Management- Crystallization Drying
Technique
AUO Envirotech’s highly efﬁcient water recycling technology uses repeated recycling processes to concentrate andreduce the volume of water used in manufacturing, eventually achieving zero emissions through high-efﬁciency
evaporation equipment. To further reduce energy consumption, AUO Envirotech employs energy-saving andefficient crystallization technology. By using vacuum and steam mechanical booster methods, the evaporation
process is made more energy-efﬁcient and carbon emission is decreased compared to traditional methods. The hotwater from condensation is again heat-recovered and used for mother liquor heating, minimizing overall energy
consumption. Further, AUO Envirotech uses energy-saving and efﬁcient crystallization technology to concentrateammonium sulfate mother liquid and produce crystals, which after centrifugation and drying processes, areconverted into high-quality ammonium sulfate crystals, realizing resource recycling and reuse.

Comprehensive Carbon Emission Management Services
AUO Envirotech starts from the enterprise-level thinking of carbon management, offering companies a complete
low-carbon transformation service in three aspects. The AUO Carbon Agent (ACA) is the ﬁrst step in enterprisecarbon management. Complying with ISO international standards, the platform can calculate the carbon
emissions of the organization and product carbon footprint, examine carbon emission hotspots at various stagesof the product life cycle, and assist in long-term monitoring, decision-making, and continuous improvementof carbon emissions. The GPARS Material Data Management Platform helps companies select non-toxic lowcarbon materials in the research and design stage. The Low-Carbon Intelligent Building Platform can collectparameters such as building electrical equipment and indoor and outdoor data, and monitor and control thedevices automatically with IoT, helping buildings achieve net-zero goals. In addition, in the manufacturing
production factories, they integrate the FMCS Low Carbon Factory Equipment Management Platform and Energy
Management Platform to perform on-site energy monitoring and energy-saving improvements.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Highlights

Water Treatment Technology Assists in the Construction of Reclaimed Water in theCentral Taiwan Science Park

Micro Alkaline Water Technology Promotes Dengue Prevention Global Warming
Increases the Risk of Dengue Transmission

As water treatment experts, AUO Corporation and AUO Envirotech, are participatingin the “Shueinan Water Resource Recovery Center Effluent Recovery New Build,Transfer and Operating Project (BTO)” conducted by the Water Resources Bureau
of Taichung City Government. With abundant wastewater treatment and recovery
technology and experience, they are helping to reuse the effluent originallydischarged from the water resource center as reclaimed water. It is expected thatat least 10,000 CMD of reclaimed water will be provided in the initial stage of watersupply to nearby AUO Taichung plant and other enterprises, effectively alleviating therisk of water shortage in industries.

AUO Envirotech is collaborating with Yungkang Elementary School in Tainan Cityand Taiwan Semiconductor Manufacturing Company (TSMC) Charity Foundation
to carry out scientiﬁc activities to prevent dengue fever. AUO Tech’s micro-alkaline
water technology, which uses magnetization and near-infrared light, can improvewater quality and reduce environmental odors, thus minimizing the breeding ofmosquitoes. This process requires neither energy consumption nor the additionof pharmaceuticals, so it enhances people’s quality of life in an eco-friendly way.
Currently, this technology has been applied in a variety of areas such as recreational
facilities, aquaculture industries, campuses, etc.

177

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

AUO Digitech
AUO Digitech is a subsidiary of AUO corporation, providing smart manufacturing solutions and digitaltransformation services. It integrates people, machines, materials, methods, environment and artiﬁcial
intelligence in manufacturing, offering all-in-one solutions that assist companies in their digitaltransformation.

AUO Digitech’s Subsidiary
Company nameAUO Digitech

Founded in20th July 2021

ChairmanPaul SL Peng

Executive vice president

Headquarter

Main product andtechnology
Operation

WebsiteCompany nameMain product and technology

WebsiteAUO Digitech

Corporate Sustainability Development
Research Institute, Smart industrial
service solutions

http://www.auodigitech.com

AUO MegaInsightIndustrial software, Digital transformation
strategy consulting services, Smart factory
construction services

https://ami.auodigitech.com/

Aedgetech

Industrial automation services, Edge
intelligence services, Industrial AI Platform

https://ati.auodigitech.com/

Jack Chao
5F., No.288, Longyuan 1st Rd.,Longtan
Dist.,Taoyuan City.Hsinchu Science Park.
325002 Taiwan (R.O.C.)

Innovative Products and Services in Response to SDGs

Smart energy, automated optical inspection,
smart manufacturing
Taiwan, Singapore China(Suzhou, Xiamen)

https://www.auodigitech.com/

The Smart Grid iFEMS Smart Cloud Energy Data Monitoring Solution
iFEMS is a smart energy management platform capable of analyzingenergy data. Using IoT technology, it monitors factory energy-consuming
equipment and collects energy usage data through application components
such as SPIIDER current sensors. The information, after data analysis,
deconstruction, and fusion, is presented with high readability charts,
enabling precise and intelligent management by energy managers. Thissolution has been implemented in AUO fabs, helping save 4,745 tons ofcarbon emissions per year, saving 9,300,000 kWh of electricity, and about
NTD 20.6 million in electricity costs. Additionally, this solution has been
introduced in the glass, optoelectronics and metal fastener industries,
successfully reducing 30% of energy setup costs and 70% of meter reading
manpower, and increasing management efﬁciency by 50%.

178

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Smart iCool -An AI-powered energy-saving solution for
ice-water system
The electricity usage of the ice-water air conditioning system accounts for approximately 10-20% of the totalfactory power consumption. It constitutes a complex system composed of major devices such as the chiller
host, cooling tower, and water pump, where each device affects each other through a circulation pipeline
and exhibits variations in operational energy eff iciency. Smart iCool can solve the pain point of ref ined
management of electricity consumption in the ice-water system. Through multiple product iterations andfunction optimization, the third generation of Smart iCool has introduced AI model prediction and control,
which can reduce the energy consumption of the ice-water system by more than 12%.

AUO MagaInsight (Suzhou)

EHS Intelligent Safety Management Solution
AUO digitech is dedicated to providing enterprises with effective
and intelligent solutions in the field of safety management. The EHS
Intelligent Safety Management System uses real-time dynamic risk quadcharts, hidden danger identification and reporting, and construction
safety monitoring management modules to enable companies tofully grasp their safety situation. The system uses a low-code platform
to create a large number of safety forms in EHS scenarios, combineswith the IoT model, and can obtain data from multiple channels to
help enterprises improve their safety management level, reduce theoccurrence rate of risks, increase employee work efficiency, and save
manpower expenditure. It has been successfully applied in industries
such as medicine, electronics, machining, and semiconductors.

Aedgetech (Suzhou)
iFEMS Energy Management Solutions
The iFEMS energy management system is compatible with mainstream communication protocols on
the market, easily parsing digital energy meters commonly used by enterprises such as water, electricity,
photovoltaics, natural gas, steam, and compressed air. Aedgetech provides a one-stop service for equipment
connection, data processing, and application development, helping enterprises to achieve digital transformationof energy management. With five major functional modules: Energy flow statistics, Energy consumption
analysis, Energy overview, real-time warning, and anomaly detection, it helps enterprises reduce personnel costs
for meter reading, improve energy use efﬁciency, and create value for energy digital management.
iFEMS is suitable for various industries such as circuit boards, semiconductors, metal processing, optoelectronic
panels, petrochemicals, and pharmaceuticals. It has been successfully applied to a pharmaceutical company,
establishing a three-level energy management for that company, monitoring water, electricity, and naturalgas, obtaining 84-point data, and then utilizing the iFEMS energy management platform to conduct statistics,
reports, and energy consumption analysis. it assists enterprises in achieving the digital transformation of energy
management, reducing energy costs, and improving energy utilization efﬁciency.

179

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Fact Sheet

180

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix181

2023 AUO Sustainability Report

Correspond to Ch1. Business Operation
Reporting period: 1st Jan 2023 to 31st Dec 2023
Asset Structure

Financial Assistance Received from
Government

GRI 2-6

Item

Unit

2023

Display business net sales

NTD million

229,262.04

Energy business net sales

NTD million

18,702.40

RegionTaiwan2

Shipment of panels

10,000 m

Government
shareholding (%)

Total government
assistance(NTD million)

2.21%

90.55

Mainland China

2,098.50

Singapore

843.29-2.12

CanadaNote: The scope is the same as the 2023 consolidated statement.

Tax Situation

GRI 201-4

8.13

Economic Value Distribution
Item
Generated direct
economic values

Economic valueof distribution

Value (NTD million)

Total annual revenue (Net sales)

247,964.44

Other income

4,434.58

Operating expenditure

176,142.37

R&D expenditure

13,231.45

Employee salary and beneﬁt

42,933.29

Payments to shareholders

Board Composition

Item

Unit: NTD 1,000

Pre-tax proﬁt-21,682,060

Declared tax amount-3,530,906

Cumulative acceptableadjustments

5,170,820

Effective tax rate

16.28

Cash tax rate0

Cash tax amount

1,639,914

GRI 2-9

GenderMale

Female

Total

Age

Male

FemaleTotal

Number of executive
directors202

Under 55

10

1Number of nonexecutive directors

3

3

6

Age 56~6522

4

6,134.31

Total

5

3

8

Over 66

2

1

3

Community investment

6.46

Payments to government

2,945.29

Number of independent
directors

2

2

4

Depreciation expense (ﬁxed assets)

32,379.06

Amortization expense (intangible assets)

126.48Interest expenditure

2,660.89

Rent expenditure

124.88

Total distributed economic values

276,684.48

Retained economic values-24,285.46

Note 1: Other income includes interest, rental income, dividend income, subsidy income, net
gains from disposal and scrapping of fixed assets, and net amounts from disposal ofinvestment and ﬁnancial assets.
Note 2: The scope is the same as the 2023 consolidated statement

Note: The ratio of board members who areover 50 years old is 100%.

Number of directors who also serve on the boards of no more than 4 othercompanies

6

Number of independent directors or non-executive directors with industry
experience

4

Number of non-executive directors with risk management expertise

1

Average tenure of board members

4.38 years

Annual average attendance rate of the board of directors

100%

Minimum required attendance rate for the board of directors

100%

CONTENTS

1 Business
Operation

2 Sustainable
Management

High-level Compensation Policy

3 Environmental
Sustainability

4 Inclusive
GrowthSubsidiary

Fact
Sheet

Appendix

182

2023 AUO Sustainability Report

The Finalization of Major Antitrust Cases and the AssociatedFinancial Losses

GRI 2-21

The ratio of the percentage increase in the highest individual's annual totalcompensation to the median percentage increase in annual total compensation ofother employees in the organization0

The ratio of the value of company shares that board directors are required to hold tothe multiple of annual base salary

10

The median ratio of the highest individual's annual total compensation

176.44The longest performance period covered by the executive compensation plan

3 years

The longest grant period for CEO compensation

3 years

The proportion of employees two levels below the CEO eligible for long-term
incentive plans

14 cases

The ratio of the value of company shares that the CEO is required to hold to themultiple of annual base salary

10

The ratio of the CEO's annual total compensation (including ﬁxed and variable
compensation) to the average annual total compensation of employees (excluding
the CEO)

116.97The multiple of the CEO's annual total compensation (including ﬁxed and variable
compensation) to the median annual total compensation of employees (excluding
the CEO)

166.0

Total number of ﬁnalized Antitrust civil lawsuits
A
B

0

Total amount of conﬁrmed ﬁnes

0

The percentage of conﬁrmed ﬁnes to the company's annual
revenue

0%

Case summary

None

C

Total number of pending Antitrust civil lawsuits that have notbeen ﬁnalized as of 2023

Training of Antitrust Law Policy1

GRI 205.02

Category

PeopleProportion

Category

PeopleProportion

IDL

10,65697.19%

Mid-level
management

170

93.41%

Junior level
management

2,595

96.54%

Senior level
management44

83.02%

1

The ratio of IT infrastructure introducing ISO27001, NIST, or similar standards

100%

total number of cases where employees were terminated due to dishonest
behavior0

The total number of information security vulnerabilities or other network security
incidents

0

total number of cases where contracts with clients or suppliers were terminated
due to dishonest behavior with an employee

1

The total number of conﬁrmed incidents of data breaches, theft or loss of customer
data

0

total number of lawsuits the company faced due to dishonest behavior

0

The total number of customers, consumers, employees affected by information
security vulnerabilities;

0

Number of instances of dishonest behavior currently under investigation

00

The total amount of ﬁnes related to information security vulnerabilities or othernetwork security incidents0

Number of cases of conﬂict of interest violations
Number of money laundering or internal trading violations

0

The number of complaints or reports received in the company's privacy mailbox andconﬁrmed to violate the protection of customer personal data

0

Signiﬁcant cases of the company being ﬁned by the regulatory authority for violating
customer personal data protection

0

Information Security

Conﬁrmed Incidents of Dishonesty and Actions Taken
Conﬁrmed incidents of dishonesty (number of corruption or bribery cases, A+B+C)
AB

5 AgileInnovation

CCONTENTS

1 Business
Operation

Annual Violations
Category
Environment

Occupationalsafety2 Sustainable
Management

3 Environmental
Sustainability

3

5 AgileInnovation

Subsidiary

Violation of regulations

0-2023 AUO Sustainability Report

183

230,000

Violation of the "Occupational Safety and Health Act".
Inadequate design of safety protection and interlocking systems
resulted in injuries to maintenance personnel due to being caught inthe machinery during abnormal shutdown.
Establish a daily monitoring and supervision system by creating alist of work areas and contractors, and implement a mechanism forcontractor supervision and reporting conﬁrmation.
Schedule designated personnel to conduct hazard notiﬁcations andsafety inspections before, during, and after on-site operations, ensuringthat all operations, hazardous activities, and supervision arrangements
within the work area are properly communicated and conﬁrmed.

❶ Revise the SOP for handling abnormal maintenance procedures, including informing
about hazards before daily operations and ensuring the conﬁrmation of clearance
and responsibilities.
❷ Plan and designate clearance areas and post reminders in those areas.
❸ Provide retraining for all safety ofﬁcers within the factory premises.

The failure to pay employees in accordance with the regulations forovertime work on weekdays.

420,000

Improvement measures-

The Company did not proactively provide the salary calculation items forthe month when the employees left.

4

Appendix❶ Add safety interlocks to the gaps of the gate door to prevent accidents and install
warning lights for the maintenance area of the gate door in the Robot room.
❷ Revise the SOP (Standard Operating Procedure) for handling abnormal machineconditions and equipment duty responsibilities, as well as the required training
programs according to the speciﬁed regulations.

Violation of the "Occupational Safety and Health Act".
Failure to comply with necessary regulatory management
requirements during the construction of the solar power ﬁeld in Tainan.

Labor

Fact
Sheet

GRI 2-27

Case Amount of ﬁne (NTD)0

4 Inclusive
GrowthColleagues were not given overtime pay for extended work hours on
regular days, and some colleagues were found to have worked more than
12 hours in a single day.
Employees working more than 12 hours in a single day.

❶ Establish a daily monitoring and supervision system by creating a list of work areasand contractors, and implement a mechanism for contractor supervision andreporting conﬁrmation.
❷ Schedule designated personnel to conduct hazard notiﬁcations and safety
inspections before, during, and after on-site operations, ensuring that all operations,hazardous activities, and supervision arrangements within the work area are properly
communicated and conﬁrmed.
❶ During the resignation process, we conﬁrm the email address with departing
employees for the monthly salary of the resignation, and provide an electronic
payslip or paper details as required to make sure they are aware.
❷ The company actively provides work hour reports to management for staff care andwork allocation for the management of employee working hours.
❸ Supervisors have knowledge of their subordinates' overtime hours and regularly
check in on their situations. We regularly enhance the promotion of overtime
application rules and procedures.

Note: AUO deﬁnes signiﬁcant events as those that may have a signiﬁcant impact on shareholder equity or securities prices. There were no signiﬁcant regulatory violations in 2023. The disclosure of events in this table isintended to be consistent with the information disclosed in the annual report.

Contributions & Spending Amount
2020

2021

2022

2023

Lobbying, interest representationor similar

0

0

0

0

Political campaigns/organizations /candidates

0

0

0

0

Trade associations or tax-exemptgroups6,007,794

5,727,960

4,787,565

5,470,176

Other (e.g. spending related toballot measures or referendums)

0

0

0

0

Total

6,007,794

5,727,960

4,787,565

5,470,176

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

Participate in Associations/organizations

4 Inclusive
Growth5 AgileInnovation

GRI 2-28

AUO upholds the vision of contributing to the industry for shared prosperity, actively participates inpublic policies and applies our practical experience in vertical industry chains to engage in public
associations and government platforms, thereby creating an ecosphere through exchanges and sharing.
CategoryTradeassociations

Role

2023 membership

Taipei Computer Association (TCA)

Chairman

NTD 15,000

Taiwan Display Union Association (TDUA)

Chairman0

Taiwan Panel and Solution Association (TPSA)

Vice
chairman

NTD 3,840,000

Taiwan Photovoltaic Industry Association (TPVIA)

Executive
director

NTD 30,000

Taiwan Advanced Automotive Technology
Development Association (TADA)

Executive
director

NTD 50,000

The Society for Information Displays (SID)

Executive
director

0

ROC Taiwan Liquid Crystal Society (ROC TLCS)

Director

NTD 35,000

The Allied Association for Science Park Industries(ASIP)

Director

NTD 666,000

8K Association

Member

USD 10,000

Video Electronics Standards Association (VESA)

Member

USD 10,000

Photovoltaic Generation System Association(PVGSA)

MemberNTD 10,000

Taiwan Electrical and Electronic Manufacturers'
Association (TEEMA)

Member

NTD 42,000

Autonomous Mobile Robot Alliance (AMRA)

Member

NTD 44,110

Institute for Biotechnology and Medicine Industry(IBMI)

MemberNTD 20,000

3D Interaction & Display Association (3DIDA)

MemberNTD 30,000

Semiconductor Equipment and Materials
International (SEMI Taiwan)

Member

NTD 73,706

Name of associations/organizations

Taiwan Climate Partnership (TCP)

Sustainability
associations

Vice
chairman
Executive
director

NTD 100,000

Director

NTD 5,000

Taiwan Net Zero Emissions Association (ATNZE)

Director

NTD 150,000

Center for Corporate Sustainability (CCS)

Director

NTD 280,000

CommonWealth-ESG

MemberNTD 120,000

Fact
Sheet

Appendix1842023 AUO Sustainability Report

Correspond to Ch2. Sustainable
Management
Reporting period: 1st Jan 2023 to 31st Dec 2023
Customer Returns
Item

Pcs

Ratio

Total volume of returns and exchanges( A + B + C )146,847

100%

ROK (Return to Original, Given back to
customer) volume A62,41542.5%

B/S GRADE quantity (Downgraded CSD resold
to other customers) B

71,362

48.6%

OUTPUT is neither original grade nor B/S
Grade component quantity (Downgradedbusiness resold to other customers) C

13,070

8.9%

Disposal
methodConﬂict Minerals

Supplier Composition
Number of
suppliers

Number ofcontractors

Display

385

76

PV

319

1

Waste

127

0

The proportion of total revenue
made up by products containing 0%
conﬂict minerals
The proportion of total revenue
made up by products containing
conﬂict minerals (veriﬁed by0%suppliers as originating from
non-conﬂict areas)

Percentage of local procurement from suppliers
Display
TaiwanTaiwan Carbon Capture Storage and Utilization
Association (TCCSUA)

Sorted by strokes in characters, according to roles and organization names.

Subsidiary

GRI 204-1

EnergyChina

Singapore

Taiwan

91.4
90

91

89.5

91

39

35.6

19
2021

91

2022

2023

Note: The main operational focus of the display is the
production base, and “local” is deﬁned as thecountry where the production base is located.

42

2021

36

2022

41

2023

Note: The energy businessproduction base is only
located in Taiwan.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

185

Correspond to Ch3. Environmental Sustainability
Coverage Rate of Environmental Management System
Environmental Management System (ISO14001)

2023

Coverage rate of the certiﬁed ISO 14001

100%

Coverage rate of the ISO 14001 veriﬁed by a third party

100%

Coverage rate of the ISO 14001 veriﬁed by an internal audit at thecompany's headquarters

100%

Energy consumption

GRI 302-1

Item

2023

Unit

Item

2023

Unit

Total energy usage

17,224,256.00

GJ

Total energy usage (Renewable)

4,784,515.55

MWhTotal energy usage (Renewable)

251,419.41

GJ

Total energy usage (Nonrenewable)

69,838.73

MWhTotal energy usage (Nonrenewable)

16,972,836.61

GJ

4,714,676.82

MWh

Purchased electricity consumption(Renewable)

Purchased electricity consumption(Renewable)

49,337.95

GJ

13,704.99

MWh

Purchased electricity consumption(Nonrenewable)

Purchased electricity consumption(Nonrenewable)

16,155,823.80

GJ

4,487,728.83

MWhSelf-Generation electricity
consumption (Renewable)

Self-Generation electricity
consumption (Renewable)

202,081.45

GJ

Purchased steam consumption

56,133.74

MWh

Purchased steam consumption

38,762.49

GJ

Natural gas

10,767.36

MWhNatural gas

701,170.36

GJ

Liqueﬁed petroleum gas (LPG)

194,769.54

MWh

Liqueﬁed petroleum gas (LPG)

22,234.40

GJ

Diesel6,176.22

MWh

Diesel

53,862.52

GJ

Gasoline

14,961.81

MWhGasoline

983.03GJ

273.06MWh

Self-generation and parallel sale
(Renewable)

Self-generation and parallel sale
(Renewable)

188,268.96

GJ

Energy consumption per input sheet
substrate area

52,296.93

MWhEnergy consumption per input sheet
substrate area

0.31

GJ/m2

86.82

KWh/m2

Electricity consumption per input
sheet substrate area

Electricity consumption per input
sheet substrate area

0.30

GJ/m2

Energy consumption per unit revenue

82.71

KWh/m2

Energy consumption per unit revenue

0.695

GJ/NTD 10,000

Electricity consumption per unit
revenue

19.30

KWh/ NTD 1,000

Electricity consumption per unit
revenue

0.662

GJ/NTD 10,000

Total energy usage

18.38

KWh/ NTD 1,000

Note: The conversion coefﬁcients of natural gas, liqueﬁed petroleum gas, diesel and gasoline are referred to the caloriﬁc value data announced by the Bureau of Energy, Ministry of Economic Affairs

CONTENTS

Water

1 Business
Operation

GRI 303-3

2 Sustainable
Management

GRI 303-4

Category

3 Environmental
Sustainability

Unit

Total

Ground water
All regions(Include areas
with water
stress)Sea water

Fresh water

Third party water

Ground water
Areas withwater stress:
Taichung,
Houli, Kunshan

Sea water
Produced water

Third party water

Appendix2023 AUO Sustainability Report

Water withdrawal

Water discharge

Water consumption

2022

2021

2023

2022

2021

2023

2022

23,809.58

21,546.86

24,991.78

16,944.26

14,854.39

17,280.86

6,865.32

6,692.47

9.18

14.84

15.37

2,046.46

1,873.50

1,878.38--

3,461.20

2,819.95

-

-

0

0

0

0

0

0

198.59252.05417.560

0

0

Other water

0

0

0

0

0

0

Fresh water

0

0

0

0

0

0

1,000 m3

0

0

0

0

0

0

Fresh water

0

0

0

0

0

0

Other water

0

0

0

0

0

0

Fresh water
Renewable
water
Other water

20,766.58

18,850.33

22,463.35

14,897.80

12,980.89

15,402.48

2,835.23

2,429.65

2,095.50

0

0

0

0

0

0

0

0

0

15,808.10

10,778.57

13,165.71

12,346.90

7,958.62

9,884.06

Fresh water

0.13

0

0

0

0

0

Other water

0

0

0

0

0

0

Fresh water

0

0

0

0

0

0

Other water

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Fresh water

0

0

0

0

0

0

Other water

0

0

0

0

0

0

Fresh water
Renewable
water
Other water

12,972.74

10,778.57

13,165.71

12,346.90

7,958.62

9,884.06

2,835.23

0

0

0

0

0

0

0

0

0

0

0

Fresh water
Other water

1,000 m3

GRI 303-4
Item

Water
pollutantdischarge

186

2023

Fresh water

Total
Surface water(including rainwater)

Fact
Sheet

Subsidiary

Other water

Other water

Produced water

5 AgileInnovation

GRI 303-5

Item

Surface water(including rainwater)

4 Inclusive
Growth

Unit
3

2023

2022

2021

Item

Unit

2023

2022

2021

16,944.26

14,854.39

17,280.86

Process water
recycling volume

1,000 m3

132,211116,381

137,570

Process water
recycling rate

％

95.02

94.89

94.47

Waste water

1,000 mCOD

tons

448.56435.64547.25

BOD

tons

46.06

48.31

56.04

SS

tons

89.95

90.48

111.66

Note: The coverage rate of water-related data (calculated by revenue) is 100%.

CONTENTS

1 Business
Operation

Emissions

GRI 305-1

Category

2 Sustainable
Management
GRI 305-2

3 Environmental
Sustainability

GRI 305-3

4 Inclusive
GrowthGRI 305-6

GRI 305-7

5 AgileInnovation

Unit

2023

2022

2021

Scope 1

10,000 tCO2e

6.68

6.97

7.92

Scope 2

10,000 tCO2e

236.11

237.34284.12

Scope 3

10,000 tCO2e

217.06100.45

128.61ODS

CFC-11 equivalent
metric tonnes

0.05

0.07

0.07

NOx

tons

81.72

87.62

72.52

SOx

tons

52.00

54.52

POP

tons

0

VOC

tons

HAP
PM

Air
pollutantemissions

Appendix2023 AUO Sustainability Report

Directmaterials

187

GRI 301-1

Glass input
substrate area
(m2)

55,106,302
Renewable (Recycle)(tons)

Nonrenewable(tons)

Renewable
ratio

Glass substrate

12,841

51,36320%

Polarizing ﬁlm

0

2,414

0%

Liquid crystal

1,238

70,662

0.02%

49.96

Backplate256

15,839

0.02%

0

0

Light guide
plate

0

5,848

0%

138.75123.30168.46

Process thinner(Array/CF)

1,313

1,331

0.50%

tons

0

0

0

Developer

0

8,502

0%

tons

0

0

0

Aluminumetchant

0

4,598

0%

Process stripper

40,1374,466

0.8999%Photoresist

1

1,016

0.001%

PFCs

0

940.6

0

Note 1: ODS includes R-22 and R-123.
Note 2: The source of the emission factor comes from the ozone depletion potential of ozone-depleting substances
under the Montreal Protocol.
Note 3: Greenhouse gas emissions are calculated using operational control, with related emission factors and global
warming potential sourced from the IPCC AR5, Taipower Company announced coefﬁcients, and coefﬁcientsannounced by China's Ministry of Ecology and Environment.

Package Recycle

Fact
Sheet

Materials & Recycled Materials

Scope/Item

GHG
emissions

Subsidiary

GRI 301-3

Directmaterials

Indirectmaterials

Component Recycling

Supplier packaging recycling rate (actual)

95.7%

Supplier packaging recycling rate (target)

93%

Product packaging recycling volume

225,005 set

Product packaging recycling rate

48.28%

Note 1: The calculation method for the supplier packaging recycling rate is (recyclable supplier's recycling volume/
recyclable supplier's packaging shipment volume) * 100%
Note 2: The calculation method for the product packaging recycling rate is (recyclable customer's recycling volume
for TV panel packaging /shipment volume) * 100%

Total weight of electronic component recycling (tons)

21.95

Total amount of electronic component recycling (NTD)

1,685,847

CONTENTS

Waste

1 Business
Operation

GRI 306-3

2 Sustainable
Management

GRI 306-4

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

2023
Unit

Total ( A ＋ B )Hazardous waste A
Non-hazardous waste

Category

DisposalHazardous
waste

Disposal

B

Item

188

2022

Waste diverted Waste directedfrom disposal
to disposal

Waste
generated

2021

Waste diverted Waste directedfrom disposal
to disposal

Waste
generated

Waste diverted Waste directedfrom disposal
to disposal

73,468.88

67,360.52

6,108.36

76,204.08

68,198.41

8,005.67

82,654.52

68,491.26

14,163.26

13,805.12

11,711.83

2,093.29

13,397.11

10,119.76

3,277.35

18,099.85

11,934.01

6,165.84

59,663.76

55,648.69

4,015.07

62,806.97

58,078.65

4,728.32

64,554.67

56,557.25

7,997.42

Unit

2023

2022

2021

OnsiteOffsite

Total

OnsiteOffsite

Total

OnsiteOffsiteTotal

02,093.29

2,093.29

03,277.35

3,277.35

06,165.84

6,165.84

Incineration(with energy recovery)

0

0

0

0

0

0

0

0

0

Incineration(without energy recovery)

01,763.65

1,763.6501,802.90

1,802.90

03,267.88

3,267.88

Landﬁlling0159.76

159.760375.86375.860469.92469.920169.88169.880

1,098.59

1,098.59

02,428.04

2,428.04

Total

011,711.83

11,711.83

010,119.76

10,119.76

01,1934.01

1,1934.01

Preparation for reuse

03,167.98

3,167.98

02,639.37

2,639.37

05,131.98

5,131.98

Recycling

08,543.85

8,543.85

07,480.39

7,480.3906,802.03

6,802.03

Other recovery operations

0

0

0

0

0

0

0

0

0

Total

0

4,015.07

4,015.07

04,728.32

4,728.32

07,997.42

7,997.42

Incineration(with energy recovery)

0

92.41

92.41

0

0

0

0

0

0

Incineration(without energy recovery)03,321.74

3,321.74

03,215.88

3,215.88

04,764.82

4,764.82

0599.30599.3001,108.53

1,108.53

03,040.97

3,040.97

0

1.62

1.62

0

403.91403.910

191.63

191.63Total

055,648.69

55,648.69

058,078.65

58,078.65

056,557.25

56,557.25

Preparation for reuse

0

1,508.72

1,508.72

01,347.66

1,347.66

000Recycling

054,139.97

54,139.97

056,730.99

56,730.99

056,557.25

56,557.25

Other recovery operations

0

0

0

0

0

0

0

0

0

Other disposal operations

Recovery2023 AUO Sustainability Report

Total

Landﬁlling

Nonhazardous
waste

Waste
generated

tons

Other disposal operations(Note)

RecoveryAppendix

GRI 306-5

Item

Waste
generated

Fact
Sheet

Subsidiary

tons

tons

Note 1: The data is based on the amount of waste collected.
Note 2: Other disposal methods include chemical and overseas treatment.
Note 3: Incineration (including energy recovery) data for 2023 only includes Houli and Taichung sites starting from October.

1 Business
Operation

CONTENTS

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthWaste Disposal

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

189

Correspond to Ch4. Inclusive Growth

Total (tons)

RecoveryLandﬁlling Incineration

Others

Hazardous
waste

13,805.12

84.83%

1.16%

12.78%

1.23%

Non-hazardous
waste

59,663.76

93.27%

1.00%

5.72%

0.003%

Total

73,468.88

91.69%

1.03%

7.05%

0.23%

Reporting period: 1st Jan 2023 to 31st Dec 2023
The definitions of sites and offices of AUO in various regions are as follows, applicable to various statistics
below.
TaiwanChina

Other Asian regions

EuropeAmericas

Taipei, Huaya, Longke,
Longtan, Hsinchu, Taichung,
Houli, Tainan, and Kaohsiung

Kunshan, Suzhou
and Xiamen

Japan, Korea andSingapore

Slovakia, theNetherlands andGermany

United States

Environmental
Since 2009, AUO has been promoting an environmental accounting system andcompleted the global system implementation in 2012. Environmental accounting
has become essential information in the ﬁeld of environmental management. In
2023, AUO's environmental expenses amounted to approximately 1.815 billion.
2023
Expenditure Categories

Unit

Current
expenditure

Capitalexpenditures

696,295

29,732

Operating Global environmental
protection
costs

143,628

1,921

Resource
sustainability usage

473,080

747

219,661

046,434710

Pollution control

Upstream and downstream
related costs
Management costs
R&D costs

NTD
1,000

Number of Employees by Hiring TypeGRI 2-7

Employee（Employment contract）
GenderMale

FemaleEmployment contract

TaiwanChina

Other Asian
regions

EuropeAmericas

Total

Permanent employee

11,022

9,116

196

50

43

20,427

Temporary employee

1,147

1,133

134

0

0

2,414

Non-guaranteed hours
employee

0

0

0

0

0

0

Total

12,16910,249

330

50

43

22,841

Permanent employee

5,935

4,899

62

49

11

10,956

Temporary employee

609

535

51

0

1

1,196

Non-guaranteed hours
employee

0

0

0

0

0

0

20,7190Social activity costs

5,527

0

Total

6,544

5,434

113

49

12

12,152

Loss and remedy costs

00Permanent employee

16,957

14,015

258

99

54

31,383

Other environmental protection
costs

177,395

0Temporary employee

1,756

1,668

185

0

1

3,610

Subtotal

1,782,739

Non-guaranteed hours
employee

0

0

0

0

0

0

Total

18,713

15,683

443

99

55

34,993

Total costs

Total
33,1101,815,849

1 Business
Operation

CONTENTS

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Employee（Type of employment）
GenderMale

FemaleTotal

TaiwanChina

Other Asian
regions

EuropeAmericas

Total

Full-time

12,165

10,249

330

50

43

22,837Part-time

4

0

0

0

0

4

Total

12,16910,249

330

50

43

22,841

Full-time

6,542

5,434

113

49

12

Part-time

2

0

0

0

Total

6,544

5,434

113

Full-time

18,707

15,683Part-time

6

Total

18,713

Management

Taiwan46.87%

81.71%

China

47.10%

14.89%

Philippines

4.61%

0%

12,150

Malaysia

0.43%

1.01%

0

2

Singapore

0.36%

1.01%

49

12

12,152Others

0.63%

1.39%

443

99

55

34,987

0

0

0

0

6

15,683

443

99

55

34,993

Number of employees by category & gender
Category

Item

Male

Female

Under
29

30~49

Over 502030 Target
Female (%)

Total

Total employees(%)

65.84%

34.16%

28.58%

65.23%

6.19%

31% - 37%

70.89%

29.11%

0.58%

81.78%

17.64%

30%

Americas

Total

Direct labor
management

48.11%

51.89%

0.54%

87.14%

12.32%

50%

Mid-level
management (%)

87.03%

12.97%

0.00%

43.78%

56.22%

15%

Senior level
management (%)

91.23%

8.77%

0.00%

22.81%

77.19%

10%

Total

Management (%)

71.96%

28.04%

0.54%

79.10%

20.36%

30%

Revenue
generating
unit

Management (%)

74.26%

25.74%

0.52%

80.01%

19.48%

25%

Indirect labor (%)

73.25%

26.75%

14.41%

75.01%

10.58%-

Direct labor (%)

62.60%

37.40%

34.78%

60.95%

4.27%

-

STEM

77.61%

22.39%

14.68%

75.10%

10.22%

19% - 25%

China

0

1,352

0

0

0

1,352

0

400

0

0

0

400

0

1,752

0

0

0

1,752

Total

GRI 405-1

EuropeTaiwanContractor

190

Junior level
management (%)

Note 1: As of December 31, 2022.
Note 2: Contractors are mainly direct employees, signing contracts with dispatching companies andcarrying out entrusted tasks by the company.

Employee Distribution
By region

Management

Female2023 AUO Sustainability Report

Total

Other Asian
regions

Male

Appendix

Nationalities

Not Employed Staff
GenderFact
Sheet

Percentage of Employee Nationalities and Management Positions

Type ofemployment

Type ofemployment

SubsidiaryLevel

By gender & age

Taiwan50.93%

Under 2928.58%

China

47.45%

30~49

65.23%

Other Asian regions

1.21%

Over 50

6.19%

Europe

0.27%

Male

65.84%

Note 1: The senior level management: management of two levels lower than the CEO

Americas0.15%

Female34.16%

Note 2: The mid-level management: management of three to four levels lower than the CEO

Employeestructure

Note 3: The junior level management: management of directly leading personnel, managing nonmanagement employees
Note 4: Direct labor management: team leader and foreman

CONTENTS

1 Business
Operation

2 Sustainable
Management

Number of New Employees

GRI401-1

GenderFemaleMale

Subsidiary

Fact
Sheet

Appendix

Number of Voluntary Turnover

China

Other Asian
regions

EuropeAmericas

Total

Under 29

160

5,666

8

-

1

5,835

30~49

110

1,592

1

2

4

1,709

191

2023 AUO Sustainability Report

GRI401-2

Age

TaiwanChina

Other Asian
regions

EuropeAmericas

Total

Under 29

65

1,236

5

0

0

1,306

30~49

110

1,592

1

2

4

1,709

GenderFemaleOver 50

2

-

-

-

1

3

Over 50

22

0

0

0

0

22

Total

272

7,258

9

2

6

7,547

Total

197

2,828

6

2

4

3,037

Under 29363

15,32912-

215,706

Under 29

198

2,755

5

0

0

2,958

30~49

259

4,362

23

1

13

4,658

Over 50

11

1

8

2

3

25

633

19,69243

3

18

20,389905

26,95062

5

24

27,946

New employees in recent years

Internal transfers among global
indirect personnel in relation to
the total recruitment demand

53,28631,9932022

New Hire Rate

Male

30~49

534

800

19

0

2

1,355

Over 50

70

0

4

0

0

74

Total

802

3,555

28

0

2

4,387

999

6,383

34

2

6

7,424

Other Asian
regions

EuropeAmericas

Total

Total

Voluntary Turnover Rate
Age

TaiwanChina

Proportion

Under 29

0.35%

7.09%

1.13%

0%

0%

3.55%

2020

74.54%

30~49

1.44%

2.55%

1.81%

1.01%

1.82%

1.97%

2021

69.66%

Over 50

0.12%

0%

0%

0%

0%

0.06%

2022

76.02%

Total

1.91%

9.64%

2.94%

1.01%

1.82%

5.58%

2023

79.13%

Under 291.06%

15.80%

1.13%

0%

0%

8.05%

30~49

2.85%

4.59%

4.29%

0%

3.64%

3.69%

27,946

Year

2023

Gender

GRI401-2

FemaleMale

GRI401-1

Over 50

0.37%

0%

0.90%

0%

0%

0.20%

Total

4.28%

20.39%

6.32%

0%

3.64%

11.94%

6.19%

30.03%

9.26%

1.01%

5.46%

17.52%

Age

TaiwanChina

Other Asian
regions

EuropeAmericas

Total

Under 29

0.86%

32.5%

1.81%

0%

1.82%

15.88%

30~49

0.59%

9.13%

2.48%

2.02%

7.27%

4.68%

Over 50

0.01%

0%

0%

0%

1.82%

0.01%

Total

0.11%

41.63%

4.29%

2.02%

10.91%

20.57%

Under 29

1.94%

87.92%

2.71%

0%

3.64%

42.74%

30~49

1.38%

25.02%

5.19%

1.01%

23.64%

12.68%

Taiwan17.98%

Under 2966.22%

Over 50

0.06%

0.01%

1.81%

2.02%

5.45%

0.07%

China

81.32%

30~49

32.29%

Total

3.38%

112.95%

9.71%

3.03%

32.73%

55.49%

Other Asian regions

0.64%

Over 50

1.49%

4.84%

154.57%

14%

5.05%

43.64%

76.05%

Europe

0.02%

Male

68.13%

Americas0.05%

Female31.87%

GenderMale

5 AgileInnovation

TaiwanTotal

Female4 Inclusive
Growth

Age

Total

2021

3 Environmental
Sustainability

Total

Note: The calculation method for the new hire rate is the number of new employees of a speciﬁc age
and gender/ the total number of employees in the same year.

Total

Note: The calculation method for turnover rate is the number of employees of a speciﬁc age and gender
who left the job during that year/ the total number of employees during that year.

Voluntary Turnover Distribution
RegionBy gender & age

1 Business
Operation

CONTENTS

2 Sustainable
Management

Number of Employees Turnover

3 Environmental
Sustainability

4 Inclusive
GrowthAllmanagement

Taiwan100%

99.96%

100%

100%

99.97%

1,042

China

No direct labor
manager

85.60%

46.88%

0%83.26%

Americas

Total

Under 29

82

2,044

17

-

-

2,143

69

6

1

GRI 202-2

Senior level
management

Europe571

Over 50

44

7

7

2

-

60

Total

521

2,622

93

8

1

3,245

Other Asian
regions

100%

91.23%

80%

33.33%

89.34%

Under 29

224

4,717

37

1

-

4,979

Europe100%

96.15%

100%

No senior level
manager

96.30%

30~49

785

1,130

140

1

2

2,058

Americas

100%

100%

88

-

34

1

1

124

No senior level
manager

100%

Over 50

No direct labor
manager

Total

1,097

5,847

211

3

3

7,161

1,618

8,469

304

11

4

10,406

Male

Total

Ratios of Standard Wage Compared to Local Minimum Wage

Age

TaiwanChina

Other Asian
regions

EuropeAmericas

Under 290.44%

11.72%

3.84%

0%

0%

5.83%

30~49

2.11%

3.28%

15.58%

6.06%

1.82%

2.84%

Over 50

0.24%

0.04%

1.58%

2.02%

0%

0.16%

Total

2.78%

15.04%

20.99%

8.08%

1.82%

8.83%

Under 291.20%

27.05%

8.35%

1.01%

0%

13.55%

Female

Male

30~49

4.19%

6.48%

31.60%

1.01%

3.64%

5.60%

Over 50

0.47%

0%

7.67%

1.01%

1.82%

0.34%

Total

5.86%

33.54%

47.63%

3.03%

5.45%

19.49%
28.32%

Total

8.65%

48.57%

68.62%

11.11%

7.27%

Turnover Distribution
RegionTaiwanBy gender & age
15.55%

Under 2968.44%

China

81.39%

30~49

29.79%

Other Asian regions

2.92%

Over 50

1.77%

Europe

0.11%

Male

68.82%

Americas0.04%

Female31.18%

Female1.30

Taiwan

1.31
1.54

1.55

Kunshan

1.64

1.63

Xiamen1.77

1.77

Slovakia

2.17

1.70

Total

Singapore, Japan, South Korea,
Germany, the Netherlands,
America.

GRI 202-1

Male
SuzhouTurnover Rate
Gender192

Mid-level
management

Other Asian
regions

395

2023 AUO Sustainability Report

Junior level
management

China

30~49

Appendix

Direct labor
management

TaiwanFemaleFact
Sheet

Subsidiary

Proportion of Management Hired from the Local Community

GRI401-2

Age

Gender

5 AgileInnovation

No minimum wage regulations

Ratio of Basic Salary and Remuneration of Female to MaleNon-management

GRI 405-2

Management

Direct labor

Indirect labor

Junior level

Mid-level

Taiwan

0.94

1.01

0.96

1.02

Senior level
1.21

Suzhou

1.03

1.08

1.01

0.84

Not applicable

Kunshan

1.02

0.94

0.93

Xiamen

1.02

0.95

1.02

Japan

Not applicable

0.96

0.8

Korea

Not applicable

0.88

1.08

Not applicable Not applicable

Singapore

0.83

0.92

0.99

Not applicable Not applicableNot applicable Not applicable1.51

Not applicableNot applicable Not applicable

Slovakia

0.93

0.81

1.26

Not applicable Not applicableGermany

Not applicable

0.98

0.76

Not applicable Not applicable

The
Netherlands

Not applicable Not applicable Not applicable Not applicable Not applicable

United States Not applicable
Total

1.06

0.95
1.01

Not applicable Not applicable Not applicable
1.03

0.93

1.22

Note: Taking male as the baseline, the proportion of male and female gender in the work attribute, ﬁeld,
and seniority is different, so the salary ratio will be slightly different.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Parental Leave

Salary of full-time employees who are not inmanagerial positions

Fact
Sheet

Subsidiary

Appendix

193

2023 AUO Sustainability Report

GRI 401-3
Item

Mele

FemaleNumber of employees eligible for parental leave

712

426

20,645,102

Total number of employees actually using parental leave

79

95

Average salary of full-time employees who are not inmanagerial positions (NTD 1,000)

1,099

The number of employees expected returning to job after parental leave during the
year

63

73

Median salary of full-time employees who are not inmanagerial positions (NTD 1,000)

The total number of employees actually returning to job after parental leave

63

66

839

The total number of employees returning to job and still on the job for 12 months afterparental leave

36

58

Reinstatement rate after parental care leave

100

90

Retention rate after parental care leave

86%

87%

Number of full-time employees who are not inmanagerial positions

18,783

Total salary of full-time employees who are not inmanagerial positions (NTD 1,000)

GRI 401-2

Childcare subsidy

Funeral condolences

Wedding subsidy

Emergency assistance

Hospitalization condolences

Group insurance

Employee stock ownership

Total
(NTD)

Persons

584

Amount2,409,978Persons

1,452

Amount5,227,200

Persons

2,167

Amount

1,936,931

Persons

1,072

Amount

1,832,556

Persons

37

Amount3,740,000

Persons

1,538

Amount

763,896

Persons

142,282

Amount83,384,149

Persons

9,460

Amount885,166,725

The number of paid parental leave weeks provided to the primary caregiver

24 weeks

the number of paid parental leave weeks provided to the non-primary caregiver

0 weeks

Note 1: The disclosed data only coverd Taiwan sites. All related maternity leave policies comply with Taiwanese regulations.
Note 2: Reinstatement Rate is calculated as: Actual number of reinstatements during the year / Number of people expected tobe re-instated during the year *100%.
Note 3: Retention Rate is calculated as: Number of employees reinstated and continued to work for 1 year in the previous year/
Actual number of employees re-instated in the previous year *100%.

Retirement
Item

GRI 201-3
TaiwanEmployer (%)

Childbirth subsidy

Unit

Employee(%)

Item

Percentage of salarycontributed by employee
or employer

Employee Beneﬁts

Employeeparticipation

Old system:
2
New system:
6
Old system:0
New system:
0~6
100%

GRI 401-2

Suzhou Kunshan Xiamen Japan Korea Singapore Slovakia Germany

The
Netherlands

Unite
States

16

16

16

9.15

4.5

9~17

14

9.3

2.6~17.8

6.2

8

8

8

9.15

4.5

7.5~204

9.3

1.3~8.9

6.2

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Note: AUO strictly follows the laws of location of business operations. All employees participate in retirement plans in accordancewith local regulations.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthCases accepted

Cases processed

Taiwan China Other

Numberof cases

Not yetCompletedcompleted

Internal communication
mailbox

98

284

1

383

383

0

CEO’s mailbox

12

26

0

38

38

0

Sexual harassment
grievance mailbox

2

0

0

2

2

0

Please help me hotline

2,720

0

4,260

4,260

By age and genderTaiwanChina

0Other Asian
regions

Note: Multiple channels can be used for sexual harassment grievances. There were 4 sexual
harassment-related cases in 2023, of which 2 came from the sexual harassment grievance
mailbox. All 4 cases have been closed.

Labor Union

Subsidiary

EuropeGRI 102-41
RegionParticipation

Total

48%

Taiwan0%Suzhou100%

Xiamen100%

Kunshan100%

Singapore

29%

Americas

Korea

0%(Union has not yet organized)

Other Asian
regions

Germany
Slovakia

EuropeNote: AUO follows local labor laws and regulations, labor contracts, work rules, or determines
its working conditions and employment terms through statutory labor-management
meetings (such as in Taiwan). AUO also respects employees' rights to assembly andassociation, as well as the right to organize unions. “No union established” or “0%participation rate” indicates that there is no demand from employees to organize.
Additionally, in Singapore, only direct employees can request to form a union and join.

GRI 406-1

GRI 407-1

TaiwanChina

Americas

GRI 408-1
Singapore

GRI 409-1
Slovakia

Number of discrimination cases
Incidents involving the rights of aborigines
Incidents involving forced labor
Incidents involving child labor

0Hampering freedom of association(labor union) organization
Note: All forced labor cases in Taiwan have been completely resolved. Please see 4.1 Human Rights.

194

GRI 404-1
Male

FemaleUnder 2930-49

Over 50

27.71

14.46

21.92

24.21

18.20
18.68

32.95

12.44

56.19

23.80

6.64

6.62

5.20

7.56

10.24

Kunshan

33.39

22.60

29.35

29.88

59.66

Xiamen

37.89

28.78

21.17

62.05

20.66

Japan

4.48

1.20

0

3.58

4.63

Korea

4.23

1.50

1

1.58

15.78

Singapore

9.73

9.56

15.57

9.31

6.89

Slovakia

0.71

0.44

0.75

0.59

0.38

Germany

37.79

22.61

0

38.51

20.82

The Netherlands

0

1.52

0

0

1.52

United States

9.55

7.09

8.62

8.71

10.63

Total

Indirectlabor

Direct labor

Management

Nonmanagement
26.08

25.47

78.48

2.26

15.44

Taiwan

39.52

88.08

3

13.36

41.8

Suzhou

8.13

53.43

0.73

19.62

7.79

Kunshan

21.06

66.07

4.72

13.03

21.41

Xiamen

10.92

65.89

2.1

33.64

10.26

Japan

0.69

0.69

Not applicable

0.78

0.66

Korea

0.72

0.72

Not applicable

0.75

0.71

Singapore

15.8

21.42

1.72

4.11

17.59

Slovakia

1.52

4.11

0

0

1.72

Germany

1.16

1.16

Not applicable

2.19

0.52

Japan
The Netherlands

2023 AUO Sustainability Report

TaiwanBy management level

China

AppendixSuzhouTaiwanAmericas

Human Rights Related Disputes

Fact
Sheet

Average Hours of Training

Internal Communication Channel

1,540

5 AgileInnovation

The Netherlands

0.52

0.52

Not applicable

0

0.52

United States

0.73

0.73

Not applicable

1.04

0.66

GRI 411-1

Human Right Assessment
SubsidiaryJointventureTier-1Suplier

The proportion of total human right100%
assessed in last three years

100%

100%

100%

The proportion of total human rightassessed where risks have been
100%
identiﬁed

100%

100%

1.29%

The proportion of human right risk
with mitigation actions taken

100%

100%

100%

Regional ofﬁce

AUO

100%

CONTENTS

1 Business
Operation

Work-related Injuries

Remark

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report

195

GRI 403-9

The total working hour calculation is different in response to the labor conditions of each location of business operations and the calculation required by the competentauthority. The calculation principles for each region are as follows.

● Taiwan: ❶ Indirect Labor = Working days of the month (excluding company holidays) × 8 hours/
day × Total number of indirect labor/month + ❷ Direct labor = 15 days/month × 10 hours/
day × Total number of direct labor/month (use 14 days for February)● China: According to the Company's vacation attendance system● Singapore: (Direct Labor x 10 hrs x 15 days) + (Indirect Labor x 8.75 hrs x Working
days per month)● Slovakia: (Direct Labor x11 hrs x Working days per month + Indirect Labor x 8 hrs x
Working days per month)
The coverage rate of occupational injury statistics (based on employees) is 100%.

Total

Male

FemaleTaiwanChina

Singapore

Slovakia

Number of occupational injury deaths (fatalities)

0

0

0

0

0

0

0

Ratio of occupational injury deaths

0

0

0

0

0

0

0

Number of serious occupational injuries

0

0

0

0

0

0

0

Ratio of serious occupational injuries

0

0

0

0

0

0

0

Number of recordable occupational injuries

40

33

7

27

12

1

0

Ratio of recordable occupational injuries (LTIFR)

0.49

0.62

0.25

0.76

0.27

0.96

0

Working hours

80,563,604

52,954,728

27,608,876

35,494,037

43,864,904

1,036,767

167,896

Total

Male

FemaleTaiwanChina

Singapore

Slovakia

Number of occupational injury deaths (fatalities)

0

0

0

0

0

0

0

Ratio of occupational injury deaths

0

0

0

0

0

0

0

Number of serious occupational injuries

0

0

0

0

0

0

0

Ratio of serious occupational injuries

0

0

0

0

0

0

0

Number of recordable occupational injuries

3

3

0

2

0

1

0

Ratio of recordable occupational injuries (LTIFR)

0.19

0.24

0

0.36

0

5.7

0

Working hours

15,028,328

12,022,662

3,005,666

5,478,472

9,367,352

175,160

7,344

Employee

Contractor

Note 1: Occupational injury refers to the disease, injury, disability or death of workers caused by buildings, machinery, equipment, raw materials, materials, chemicals, gases, steam, dust, etc. in the workplace, or work
activities and other occupational causes. Excluding trafﬁc injuries.
Note 2: Ratio of occupational injury deaths calculation method is number of occupational injury deaths *1,000,000 / Working hours that is the ratio of occupational injury deaths of every 1,000,000 working hours.
Note 3: Serious occupational injury refers to occupational injury with disability for more than 180 days.
Note 4: The number of recordable occupational injuries refers to the number of occupational injuries legally reported to the occupational safety and health administration.

CONTENTS

1 Business
Operation

2 Sustainable
Management

Employee

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Slipping/falling

Pinching/rolling/crushing

Bashing/hitting

Number of occupational injury deaths

0

0

0

0

Ratio of occupational injury deaths

0

0

0

Number of serious occupational injuries

00Ratio of serious occupational injuries

0

Number of recordable occupational injuries
Ratio of recordable occupational injuries

Fact
Sheet

Appendix2023 AUO Sustainability Report

Falling

Others

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

13

8

4

4

4

4

3

0.16

0.09

0.04

0.04

0.04

0.04

0.03

Slipping/falling

Pinching/rolling/crushing

Bashing/hitting

Falling

OthersNumber of occupational injury deaths

0

0

0

0

0

0

0

Ratio of occupational injury deaths

0

0

0

0

0

0

0

Number of serious occupational injuries

0

0

0

0

0

0

0

Ratio of serious occupational injuries

0

0

0

0

0

0

0

Number of recordable occupational injuries

2

0

0

0

0

1

0

Ratio of recordable occupational injuries

0.13

0

0

0

0

0.06

0

Contractor

Work-related ill health

Spraining/bruising Stabbing/scratching/cutting

Spraining/bruising Stabbing/scratching/cutting

GRI 403-9

Employee

Total

Contractor

Total

Number of recordable occupational
diseases0

Number of recordable occupational
diseases0

Number of occupational disease deaths

0

Number of occupational disease deaths

0

Ratio of occupational disease deaths

0

Ratio of occupational disease deaths

0

Main types of occupational diseases

0

Main types of occupational diseases

0

Note: Occupational disease refers to the disease, injury, disability or death of workers caused by buildings, machinery, equipment, raw materials, materials, chemicals, gases, steam, dust, etc. in the workplace, or
work activities and other occupational causes. Excluding trafﬁc injuries.

196

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Appendix● Response to Material News in 2023
● GRI Index● SASB Index● TWSE Sustainability Disclosure Index –Optoelectronics Industry● TWSE-listed & OTC-listed companies'
Climate Information● ISO 26000 Comparison Table● UN Global Compact Comparison Table● 2022 Sustainability Report Corrigenda● ISO 14064 Veriﬁcation Statement● ISAE 3000 Assurance Statement● SASB Assurance Statement

197

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Response to Material News in 2023
Change of high-level personnel

February

April

AUO’s Board of Directors has resolved to appoint Dr. Frank Ko as Chief Executive Ofﬁcer and President; Mr. Paul Peng will step
down as Chief Executive Ofﬁcer but remain as Chairman and, will be appointed as Group Chief Strategy Ofﬁcer of AUO. The new
personnel change will become effective from March 1, 2023.

For more information, see
AUO website-Newsroom

Longtan site (Fab 5A) adjustment
To optimize production efﬁciency and maximize the beneﬁt of the overall production capability, AUO will combine manufacturing of products of Longtan site (Fab 5A) specs/applications
with those of similar in other sites. The Fab 5A will be capable of corresponding the market demand for new technologies and high-value products in the future.

Tainan site (fab C5D and C6C) production adjustment

August

AUO adopts a ﬂexible operation strategy and focuses on deploying new technologies and high-value products. After careful consideration, AUO will close its color ﬁlter fabs, C5D andC6C, in Tainan. The manufacturing of color ﬁlters will be centralized on the other production lines to optimize production efﬁciency and maximize the beneﬁt of the overall production
capability. AUO values the preferences of its employees. Furthermore, AUO endeavors to facilitate the arrangement of appropriate roles in alternative factories, allowing them to sustain
their careers and foster their professional growth. For individuals who are disinclined to relocate or lack a suitable position, AUO will actively engage in discussions between labor andmanagement, offering a termination of labor contract plan that surpasses regulations. This measure aims to alleviate the adverse effects on employees.

Acquisition of German Behr-Hella Thermocontrol GmbH (BHTC)
AUO will acquire 100% equity interest in the German company Behr-Hella Thermocontrol GmbH (hereinafter referred to as “BHTC”). AUO continues to implement its biaxial
transformation strategy, expand applications in vertical markets, and establish the value chain ecosystem. Through the combination, AUO will be able to integrate resources from both
platforms and generate signiﬁcant synergies through future operations, underscoring AUO’s commitment to its globalization and development strategy of cultivating a smart mobility
ecosystem. The transaction is expected to lead to sustainable growth and create long-term value for AUO’s shareholders.

OctoberFounded in 1999, BHTC specializes in the development, manufacturing, and sales of Human Machine Interfaces (HMI), Climate
Control (CC) and Electronic Control Units (ECU) for the automotive industry. BHTC possesses world-leading resources anddevelopment capabilities, with Tier 1 supplier abilities. The company maintains deep collaborations with international automotive
OEMs, positioning itself with signiﬁcant advantages in the rapidly evolving HMI market.
This acquisition represents AUO’s expansion of its smart mobility business as well as a crucial opportunity for AUO to broaden its
product portfolio and customer base, allowing AUO to shift its positioning from a panel maker to a technology solutions provider
that offers products and services across multiple verticals.

For more information, see
AUO website-Newsroom

LG Electronics Antitrust Civil Case

NovemberWith regards to an antitrust claim alleging overcharge and claiming damages brought by LG Electronics and several of its foreign subsidiaries in Korea, AUO has learned that a court ofﬁrst instance in Korea has recently ruled that AUO Corporation is liable for a total amount of around KRW 29.099 billion plus interest. This antitrust civil case has been ongoing for many
years since the Plaintiffs ﬁled their lawsuit in 2014 which resulted from the LCD antitrust case that ended in2006. AUO Corporation will take appropriate action, including but not limited
to ﬁling an appeal.

AUO close the L4B line in Singapore

December

To enhance global operational efﬁciency, AUO will cease local manufacturing operations in Singapore by closing the L4B line in the end of December 2023. The AUO Singapore site
specializes in Gen 4.5 LTPS technology, manufactures LCD panels for Smart Phones, Notebooks, Automotive and other Mobile Electronics Devices; the production capacity will be
redirected to other AUO’s production lines. AUO complies with local regulations for the employees affected due to the closure of L4B line. The communication is processing thoroughly
to keep in line with the benefits to be provided for around 500 employees at AUO Singapore site. AUO will transform the Singapore site as a service hub for providing intelligent
manufacturing solutions, and extend the pivotal role of the site in the region to give AUO group a broader outreach in APAC.

198

CONTENTS

1 Business
Operation

2 Sustainable
Management

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Chapter in the Report /Response

Disclosure

Page

Assurance

Standard

Organizational details

1.1 Company Proﬁle

11

2-2

Entities included in theorganization’s sustainability
reporting

About the Report

42-3

Reporting period, frequency
and contact point

About the Report2-4

Restatements of information

Appendix-Response toMaterial News in 2023

211

2-5

External assurance

About the Report

4

Activities, value chain andother business relationships

1.1 Company Proﬁle2.2.2 Material Topic Analysis
2.4 Responsible Supply Chain

11
47
63

Employees

Fact Sheet- Employee related
information

189

Workers who are not
employees

Fact Sheet- Employee related
information

Conﬂicts of interest

1.3.1 Board of Directors
AUO Annual Report Chapter 4

18

2-16

Communication of criticalconcerns

1.3.1 Board of Directors
2.1 Sustainability Governance

18
43

2-17

Collective knowledge of thehighest governance body

1.3.1 Board of Directors

18

2-18

Evaluation of theperformance of the highest
governance body

1.3.1 Board of Directors

18

2-19

Remuneration policies

1.3.4 Remuneration
Committee

23

2-20

Process to determine
remuneration

1.3.4 Remuneration
Committee

23

2-21

Annual total compensation
ratio

Fact Sheet- Salary related
information

192

Assurance

2-22

Statement on sustainable
development strategy

189

Strategy, policies and practices
Assured by
KPMG

Governance
2-9

Governance structure andcomposition

1.3 Governance Organization

18

2-10

Nomination and selection of
the highest governance body

1.3.1 Board of Directors
1.3.3 Corporate GovernanceCommittee

19
22

2-11

Chair of the highest
governance body

1.3.1 Board of Directors

18

2-12

Role of the highest
governance body inoverseeing themanagement of impacts

1.3.1 Board of Directors
1.5 Risk Governance
2.1 Sustainability Governance2.2.2 Material Topic Analysis

18
29
43
47

2-13

Delegation of responsibility
for managing impacts

1.3.1 Board of Directors
2.1 Sustainability Governance2.2.2 Material Topic Analysis

19
43
47

2-14

Role of the highest
governance body insustainability reporting

1.3.1 Board of Directors
2.1 Sustainability Governance

19
43

AUO 2023 Annual Report

Page

2-15

4

Activities and workers

2-8

199

Governance

2-1

2-7

2023 AUO Sustainability Report

Chapter in the Report /Response

Disclosure

GRI 2: General Disclosures 2021
The organization and its reporting practices

2-6

Appendix

AUO discloses the following indicators in accordance with the GRI Standards revised in 2021, covering the information of global locations fromJanuary 1, 2023 to December 31, 2023. The content has been veriﬁed by the third impartial unit, and the limited assurance report is attached in
the Appendix.

GRI Index
Standard

3 Environmental
Sustainability

2-23

Policy commitments

Letter from the Chairman
Letter from the CSO
AUO ESG Website-CSR Policy
and Principles
2.4 Responsible Supply Chain

5
6

114

4.1 Human Rights Protection
2-24

Embedding policy
commitments

Foreword-CSR EPS 2025
Goals
2.1 Sustainability Governance
4.1 Human Rights Protection

43
114

2-25

"Processes to remediate
negative
impacts"

1.4 Business Integrity
2.2.1 Stakeholder Cultivation
4.1 Human Rights Protection

25
44
114
25

Mechanisms for seeking
advice and raising concerns

For integrity, see 1.4 Business
Integrity and Employee
Ethics Violations Reporting
System at AUO website.
For human rights issues, see
4.1 Human Rights Protection
For employees' feedback, see
4.2.4 Enjoyable Workplace

2-26

8

114
127

Assured by
KPMG

CONTENTS

Standard

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

Chapter in the Report /Response

Disclosure

4 Inclusive
GrowthPage

5 AgileInnovation

Assurance

Subsidiary

Standard

Fact
Sheet

Appendix

2-27

2-28

Compliance with laws andregulations

1.4.2 Regulation Compliance
A total of 7 violation
incidents, see Fact SheetAnnual Violations

Membership associations

Fact Sheet-Participate in
Associations/organizations

Chapter in the Report /Response

Disclosure

Strategy, policies and practices

2023 AUO Sustainability Report

Page

Sustainable governance operation, Business risk, Stakeholder

28
183

GRI 2: General Disclosures 2021

See GRI 2: General Disclosures-

Sustainable product, Technological innovation and market strategy
GRI 301: Materials 2016

184
301-1

Materials used by weight orvolumeFact Sheet-Material

187

2-29

Approach to stakeholder
engagement

2.2.1 Stakeholder Cultivation

44

301-2

Recycled input materials
usedFact Sheet-Material

187

2-30

Collective bargaining
agreements

4.2.4 Enjoyable Workplace
Fact Sheet-Labor Union

127
194

301-3

Reclaimed products andtheir packaging materials

Fact Sheet-Material

187

GRI 416: Customer Health and Safety 2016

GRI 3: Material Topics 2021
3-1

Process to determinematerial topics

2.2.2 Material Topic Analysis

47

3-2

List of material topics

2.2.2 Material Topic Analysis

47

3-3

Management of material
topics

2.2.2 Material Topic Analysis

47

Human rights

GRI 407：Freedom of Association and Collective Bargaining 2016

407-1

Operations and suppliers inwhich the right to freedomof association and collective
bargaining may be at risk

408-1

Operations and suppliers at
signiﬁcant risk for incidents
of child labor409-1

2.4.2 Management Process
4.1 Human Rights Protection
Fact Sheet-Human rights
related disputes

411-1

There were no incidents ofindigenous rights violations
during the reporting year,
see Fact Sheet-Human rights
related disputes

Green product hazardous
substance management
regulations 100% cover key
customer speciﬁcations.

-

416-2

Incidents of non-complianceconcerning the health andsafety impacts of products andservices

AUO develops andmanufactures products incompliance with relevant laws
and regulations, and there has
been no instance of penalty
due to violations.

-

GRI 417: Marketing and Labeling 2016

417-1

Requirements for product andservice information and labeling

All of AUO's display products
have ROHS and lead-freelabels. In terms of productdisposal, since display products
are not end products, there
are no related labels. Solar
products have passed IEC
certiﬁcation and are marked in
the speciﬁcation documents.

417-2

Incidents of non-complianceconcerning product and service
information and labeling

There were no violations of any
relevant laws and regulations
or voluntary codes in thereporting year.

-

417-3

Incidents of non-complianceconcerning marketing
communications

There were no violations of any
relevant laws and regulations
or voluntary codes in thereporting year.

-

114
194

64
114
194

GRI 411: Rights of Indigenous Peoples 2016
Incidents of violations involving
rights of indigenous peoples

Assessment of the health andsafety impacts of product andservice categories

114
194

GRI 409: Forced or Compulsory Labor 2016
Operations and suppliers at
signiﬁcant risk for incidents offorced or compulsory labor

416-1

Assured by
KPMG

GRI 408: Child Labor 2016
Suppliers have no risk of childlabor use, see 4.1 Human
Rights Protection & Fact
Sheet-Human rights related
disputes

Assurance

Material Topics

Stakeholder engagement

No suppliers violated
freedom of association andcollective bargaining, see 4.1
Human Rights Protection& Fact Sheet-Human rights
related disputes

200

194

-

Assured by
KPMG

CONTENTS

Standard

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

Chapter in the Report /Response

Disclosure

4 Inclusive
GrowthPage

5 AgileInnovation

Assurance

Fact
Sheet

Subsidiary

Standard

Appendix

Disclosure

Circular & clean production

2023 AUO Sustainability Report

Chapter in the Report /Response

Page

201

Assurance

Talent attraction and retention

GRI 306: Waste 2020

GRI 401: Employment 2016306-1

Waste generation andsigniﬁcant waste-related
impacts

3.4.4 Reuse of Waste

103

306-2

Management of signiﬁcantwaste-related impacts

3.4.4 Reuse of Waste

103

306-3

Waste generated

Fact Sheet-Waste

188

306-4

Waste diverted from disposal

Fact Sheet-Waste

103
108

306-5

Waste directed to disposal

Fact Sheet-Waste

103
188

401-1

New employee hires andemployee turnoverFact Sheet - New employee &employee turnover

197

401-2

Beneﬁts provided to fulltime employees that are notprovided to temporary or parttime employees

4.2.2 Diversity & Inclusion
4.2.3 Remuneration & Beneﬁts
4.2.4 Enjoyable Workplace

122
125
127

401-3

Parental leave

4.2.2 Diversity & Inclusion
Fact Sheet - Parental Leave

122
193

GRI 402: Labor/Management Relations 2016

Climate change

402-1

404-1

Average hours of training peryear per employee

Fact Sheet - Average Hours ofTraining

194

404-2

Programs for upgrading employee
skills and transition assistanceprograms

4.3 Talent Development

130

404-3

Percentage of employees
receiving regular performanceand career development
reviews

4.3.2 Performance
Management & Career
Development

135

GRI 302: Energy 2016
302-1

Energy consumption within
the organization

Fact Sheet-Energy related
information

185

302-2

Energy consumption outsideof the organization

Information has not been
fully obtained, thus it is notdisclosed in this report.

-

302-3

Energy intensity

3.2.1 Inventory & Mitigation
Fact Sheet-Energy related
information

85

302-4

Reduction of energy
consumption

3.2.2 Improve Energy Efﬁciency

85

302-5

Reductions in energy
requirements of products andservices

3.2.2 Improve Energy Efﬁciency
5.1.3 Sustainable Products

156

GRI 305: Emissions 2016
305-1

Direct (Scope 1) GHG emissions

3.2.1 Inventory & Mitigation
Fact Sheet-Emissions

85
187

305-2

Energy indirect (Scope 2) GHG
emissions3.2.1 Inventory & Mitigation
Fact Sheet-Emissions

85
187

305-3

Other indirect (Scope 3) GHG
emissions3.2.1 Inventory & Mitigation
Fact Sheet-Emissions

85
187

305-4

GHG emissions intensity

3.2.1 Inventory & Mitigation

185

305-5

Reduction of GHG emissions

3.2.1 Inventory & Mitigation

80

305-6

Emissions of ozone-depleting
substances (ODS)

Fact Sheet-Emissions

187

305-7

Nitrogen oxides (NOX), sulfur
oxides (SOX), and othersigniﬁcant air emissions

Fact Sheet-Emissions

187

AUO handles signiﬁcant
operational change
notiﬁcations in accordancewith local laws and regulations.

Minimum notice periods
regarding operational changes-

GRI 404: Training and Education 2016

Assured by
KPMG

GRI 405: Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies
and employees

1.3.1 Board of Directors
4.2.2 Diversity & Inclusion
Fact Sheet - Board
Composition & Diversity

405-2

Ratio of basic salary andremuneration of women tomenFact Sheet - Ratio of Basic
Salary and Remuneration of
Female to Male

19
122

192

GRI 406: Non-discrimination 2016406-1

Incidents of discrimination andcorrective actions taken

There were no incidents of
discrimination during thereporting year, see Human
Rights Protection and Fact
Sheet-Human rights related
disputes

114

Assured by
KPMG

CONTENTS

Standard

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

Chapter in the Report /Response

Disclosure

4 Inclusive
GrowthPage

5 AgileInnovation

Assurance

Standard

Supply chain management

204-1

2.4.2 Management Process

308-1

308-2

Negative environmental
impacts in the supply chain
and actions taken

Appendix

Chapter in the Report /Response

Disclosure

414-2

64

2.4.2 Management Process
The percentage of new
suppliers who have signed the"AUO Supplier/Subcontractor
Code of Conduct" and"Supplier Integrity Transaction
Commitment" is 100%.

64

2.4.2 Management Process

64

203-1

1.5 Risk Governance
4.5 Social Engagement

29
142

203-2

Signiﬁcant indirect economic
impacts

1.5 Risk Governance
4.5 Social Engagement

29
142

205-1

New suppliers that were screenedusing social criteria

64

Negative social impacts inthe supply chain and actions
taken

2.4.2 Management Process

64

Operations assessed for risks
related to corruption

In 2023, AUO has conductedanti-corruption audits at
100% of our global operating
locations (Taiwan, Mainland
China, Singapore), and no
signiﬁcant corruption risks
have been identiﬁed.

-"Communication and training
about anti-corruption policies
and procedures"

The number of members of
AUO's governance unit who
have received anti-corruption
training and communication
is 9, accounting for 100%; for
information on employees
receiving anti-corruption
training and communication,please refer to section 1.4
Business Integrity. In 2023,
the number of supplierswith transactions who havereceived anti-corruption
communication is 3,617,
accounting for 100%.

205-2

-

Conﬁrmed incidents ofcorruption and actions taken

In 2023, there was a total of 1
case related to fraud or ethics.
The employees involved in thecase colluded with suppliers
for improper actions by taking
advantage of their positions.
Both the employees andsuppliers have been disciplined.

27

Assured by
KPMG

Other Topics
GRI 201: Economic Performance 2016
201-1

Direct economic value
generated and distributed

Fact Sheet - Economic value
distribution

181

201-2

Financial implications andother risks and opportunities
due to climate change

3.1.2 Climate Risk Adaption

74

201-3

Deﬁned beneﬁt plan
obligations and otherretirement plans

4.2.3 Remuneration & Beneﬁts
Fact Sheet-Retirement plans

125
193

201-4

Financial assistance received
from government

Fact Sheet-Financial
assistance received fromgovernment

181

Fact Sheet - Ratios of standard
wage compared to local
minimum wage

202-2

"Proportion of senior
management hired from thelocal community""4.2.1 Talent Distribution
Fact Sheet-Proportion ofmanagement hired from thelocal community"

205-3

GRI 206: Anti-competitive Behavior 2016

206-1

GRI202: Market Presence 2016
202-1

202

Assurance

GRI205: Anti-corruption 2016

2.4.2 Management Process
The percentage of new
suppliers who have signed the"AUO Supplier/Subcontractor
Code of Conduct" and"Supplier Integrity Transaction
Commitment" is 100%.

Ratios of standard entry level
wage by gender compared to
local minimum wage

Page

Infrastructure investments andservices supported

GRI 414: Supplier Social Assessment 2016414-1

2023 AUO Sustainability Report

GRI203: Indirect Economic Impacts 2016

GRI 308: Supplier Environmental Assessment 2016

New suppliers that werescreened using environmental
criteria

Fact
Sheet

Other Topics

GRI 204: Procurement Practices 2016
Proportion of spending on local
suppliers

Subsidiary

192
119
192

Legal actions for anticompetitive behavior, antitrust, and monopoly practices

1.4.2 Regulation Compliance
Fact Sheet-Completed antitrust
major lawsuit cases and related
ﬁnancial loss
For more about other cases,
see AUO Annual Report28
182

Assured by
KPMG

CONTENTS

Standard

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

Chapter in the Report /Response

Disclosure

4 Inclusive
GrowthPage

5 AgileInnovation

Assurance

Subsidiary

Standard

Fact
Sheet

Appendix

Chapter in the Report /Response

Disclosure

Other Topics

Page

203

Assurance

Other Topics

GRI 207: Tax 2019

GRI 207: Tax 2019

207-1

Approach to tax

1.2.2 Tax Governance

17

207-2

Tax governance, control, andrisk management

1.2.2 Tax Governance

17

207-3

Stakeholder engagement andmanagement of concerns
related to tax

1.2.2 Tax Governance

17

403-9

Work-related injuries

4.4.2 Safe Workplace
Fact Sheet - Work-related
injuries

139
195

403-10Work-related ill health4.4.2 Safe Workplace
Fact Sheet - Work-related illhealth139
195

GRI 413: Local Communities 2016

GRI 303: Water and Efﬂuents 2018
303-1

Interactions with water as ashared resource

3.3 Water Resource
Management

92

303-2

Management of water
discharge-related impacts

3.4.2 Wastewater Management
Fact Sheet-Water

101
186

303-3

Water withdrawal

Fact Sheet-Water

186

303-4

Water discharge

Fact Sheet-Water

186

303-5

Water consumption

Fact Sheet-Water

186

403-1

Occupational health andsafety management system

4.4.2 Safe Workplace

139

403-2

Hazard identiﬁcation, risk
assessment, and incident
investigation

4.4.2 Safe Workplace

139

403-3

Occupational health services

4.4.2 Safe Workplace

139

403-4

Worker participation,
consultation, andcommunication on
occupational health andsafety4.4.2 Safe Workplace

139

403-5

Worker training on
occupational health andsafety4.4.2 Safe Workplace

139

403-6

Promotion of worker health4.4.1 Health Care

137

403-7

Prevention and mitigationof occupational health andsafety impacts directly linked
by business relationships"

4.4.2 Safe Workplace

139

Workers covered by an
occupational health andsafety management system"

4.4.2 Safe Workplace

413-1

Operations with local
community engagement,
impact assessments, anddevelopment programs

4.5 Social Engagement
Through the Stakeholder Subcommittee of the Sustainable& ERM Committee, AUO
maintains interaction with
the neighborhoods whereoperational bases are located.
Please see 2.2 Stakeholder
Management.

Operations with signiﬁcantactual and potential negative
impacts on local communities

The potential impacts of the
AUO production base onneighboring communities
include terrestrial ecologicalchanges, air pollution,
disruption, waste, etc. AUO
implements air pollution andwaste management throughthe ESH unit, and promotes
positive impacts throughrelevant projects executed by
the AUO Foundation. These
executed projects include
Water Resource Patrol, Ocean
Party, etc.

GRI 403: Occupational Health and Safety 2018403-8

2023 AUO Sustainability Report139

Assured by
KPMG

413-2

44
142

Assured by
KPMG-

GRI 415: Public Policy 2016
415-1

Political contributions

There were no politicalcontributions in the reporting
year.

-

GRI 418: Customer Privacy 2016

418-1

Substantiated complaints
concerning breaches ofcustomer privacy and losses ofcustomer data

1.5.3 Information Security &Privacy Protection
There were no actual
complaints of customer privacy
violations and loss of customer
data in the reporting year.

33

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

204

SASB Index
Topic/Code

Product Security /TC-HW-230a.1

Accounting Metric

Description of approach toidentifying and addressing data
security risks in products

Category

Summary

Reference Chapter

Page

Discussion
and Analysis

The Product Security Team under the AUO Information Security Committee is responsible
for guiding product information security. They formulate regulations and softwaredevelopment frameworks, including analyzing legal standards and customer requirements,
conducting risk assessments, implementing secure design and development, conducting
online verification, and incident responses. They also supervise the implementation of
black-box and white-box testing, vulnerability assessment, and penetration testing toensure product information security.

1.5.3 Information Security &Privacy Protection

33

4.2.1 Talent Distribution

119

2.3.1 Product Quality

57

AUO employee structure by gender information as follow:

Senior Level Management (%)
Employee Diversity& Inclusion /TC-HW-330a.1

Percentage of genderand racial/ethnic grouprepresentation for (1)management, (2) technicalstaff, and (3) all other employees

Quantitative

Male

Female91.23%

8.77%

Management (%)

71.96%

28.04%

Technical Staff / Indirect Labor (%)

73.25%

26.75%All other employees / Direct Labor (%)

62.60%

37.40%Overall Employees (%)

65.84%

34.16%

AUO follows the principle of "equal treatment" and respects the privacy of personal data,
so we do not collect statistics on the ethnicity of employees. For complete data pleaserefer to Data Overview.

Product Lifecycle
Management /TC-HW-410a.1

Percentage of products byrevenue that contain IEC 62474
declarable substances

Product Lifecycle
Management /TC-HW-410a.2

Percentage of eligible products,
by revenue, meeting therequirements for EPEAT
registration or equivalent

Product Lifecycle
Management /TC-HW-410a.3

Percentage of eligible products,
by revenue, certiﬁed to anenergy efﬁciency certiﬁcation

Quantitative

AUO regularly updates the AUO Green Products Hazardous Substances Management
Regulations in response to domestic and international regulations on environmental
protection and prohibited substances, which covers the list of declarable controlled
substances listed in IEC 62474. Although limited by the fact that some materials cannot
be replaced due to current industrial technology or a trace amount remains in the
product, the content of the IEC 62474 declarable controlled substances contained in the
product does not reach the declared proportion required by the directive.

Quantitative

AUO’s product are not end product, thus those could not apply for EPEAT, which verify
end electronic and electrical product. However, AUO continues to develop and support
our customers with products that meet the standards and specif ications, such as
installation of ﬂuorinated gas destruction and removal equipment which EPEAT required.
Furthermore, AUO continues to develop sustainable products through the managementof hazardous substances, the use of circular materials, the reduction of packaging
materials, and low-energy consumption designs.

Quantitative

Most of AUO’s product are not end product, thus those could not apply for energy
eff iciency certif ication such as Energy Star, which verify end electronic and electrical
product. However, AUO continues to develop and support our customers with productsthat meet the standards and speciﬁcations. For desktop display modules, in 2023, 47.83%
of product by revenue assisting customers to meet the standards.

2.3.1 Product Quality

57

3.2.1 Inventory & Mitigation

80

3.4 Circular & Clean
Production

97

5.1.3 Sustainable Products

156

5.1.3 Sustainable Products

156

CONTENTS

1 Business
Operation

2 Sustainable
Management

Topic/Code

Accounting Metric

Product Lifecycle
Management /TC-HW-410a.4

Weight of end-of-life products
and e-waste recovered;percentage recycled

Supply Chain
Management /TC-HW-430a.1

Percentage of Tier 1 supplierfacilities audited in the RBA
Validated Audit Process (VAP)or equivalent, by (a) all facilitiesand (b) high-risk facilities

Supply Chain
Management /TC-HW-430a.2

Tier 1 suppliers’ (1) nonconformance rate with the
RBA Validated Audit Process(VAP) or equivalent, and (2)associated corrective action
rate for (a) priority nonconformances and (b) othernon-conformances

Materials Sourcing /TC-HW-440a.1

Description of the
management of risks
associated with the use ofcritical materials

3 Environmental
Sustainability

Category

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Summary

Reference Chapter

205

Page

Not applicable, due to AUO’s product are not end product, it is difﬁcult to collect data.
Quantitative

Quantitative

Note: AUO provides product repair service to customers within the product warranty period.
In 2023, a total of 146,847 pieces were processed, 42.5% of which were restored to their originalfunctions after repairs, and 57.5% were diverted for other purposes. In 2023, the total weight ofelectronic waste recycled and sold in the factory are 21.95 metric tonnes.

In 2023, percentage of tier 1 supplier facilities (note) audited in the RBA Validated Audit
Process (VAP) or equivalent, by(a) all facilities is 5.47% and(b) high-risk facilities is 58.33%.

2.3.1 Product Quality

63

3.4.4 Reuse of Waste

103

2.4.2 Management Process

64

2.4.2 Management Process

64

1.5.1 Risk Evaluation &Management29

2.4.2 Management Process64

Reference Chapter

Page

1.2.1 Financial Performance

15

-

-

-

-

Note: Annual purchase amount > NTD 10 million

Quantitative

In 2023, tier 1 suppliers’(1) non-conformance rate with the RBA Validated Audit Process (VAP) or equivalent is
22.58%, and(2) associated corrective action rate for (a) priority non-conformances and (b) other nonconformances are both 100%.

Discussion
and Analysis

AUO establishes the Conflict-f ree Minerals policy according to the due diligence
investigation procedures of the Organization for Economic Cooperation and Development(OECD), and requests suppliers to attach importance, fulfill jointly, and submit related
documents to regular monitoring to ensure the implementation of the conflict-f ree
mineral policy. In addition, AUO’s risk identiﬁ¬cation and supply chain management also
include key material risk management and response.

Summary

Code

Activity Metrics

Category

TC-HW-000.A

Number of units produced byproduct category

Quantitative

TC-HW-000.B

Area of manufacturing
facilities

Quantitative

TC-HW-000.C

Percentage of production
from owned facilities

Quantitative

In 2023, Shipment of panels are 20.99 million square meters.
Note: Calculated based on shipments area due to most of product are customized.

The total ﬂoor area of manufacturing facilities is 5.08 million square meters.

In 2023, production of panels from owned facilities is 94.01%.
Note: Data calculated by plant input cost and without outsourcing.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

206

TWSE Sustainability Disclosure Index – Optoelectronics Industry
Code / SASB
Reference Code

Activity Metrics

Category

1
TC-SC-130a.1

Amount of total energy
consumed, percentage gridelectricity, and percentage
renewable

Quantitative2

Amount of total water
withdrawn, and total water
consumed

Quantitative

Amount of hazardous waste
generated, percentage
recycled

3
TC-SC-150a.1

4

5

Description of the type,
number and rate of workrelated injuries

Description of the
management of productlifecycle, amount of weightof end-of-life products
and e-waste recovered,percentage recycled

Annual Disclosure

RemarkSummary

Unit

In 2023, total energy consumed 17,224,508.75 GJ, percentage
grid electricity 94.08%, 1.5% of renewable energy, 2.2% green
electricity (as a percentage of total electricity consumption)

Gigajoules (GJ),
Percentage (%)

In 2023, total water withdrawn 23,809.58 m³, total water
consumed 6,865.32 m³.

Thousand cubic
meters (m³)

Quantitative

In 2023, hazardous waste generated 13,805.12 metric tonnes,
84.84% recycled

Metric tons (t),Percentage (%)

Quantitative

In 2023, recordable lost-time injury f requency rate (LTIFR)
is 0.49, number of recordable occupational injuries are 40,
number of recordable occupational diseases is 0, number ofoccupational injury deaths is 0. The main types of occupational
injuries are slip and fall. The ratio of the annual number ofoccupational accidents to the total number of employees atthe end of the year is 0.11%

Percentage (%),
quantity

Reference Chapter

Page

3.2.1 Inventory &Mitigation

80

Fact Sheet-Energy

185

3.3 Water Resource
Management

92

Fact Sheet-Water

186

3.4.4 Reuse of Waste

103

Fact Sheet-Waste

188

4.4.2 Safe Workplace

139

Fact Sheet - Work-related
injuries/ill health1952.3.1 Product Quality

57

3.4.4 Reuse of Waste

103

Not applicable, due to AUO’s product are not end product, it is
difﬁcult to collect data.
Quantitative

Note: Including the sale oftailing or other recycling

Note: AUO provides product repair service to customers within the
product warranty period. In 2023, a total of 146,847 pieces were
processed, 42.5% of which were restored to their original functions
after repairs, and 57.5% were diverted for other purposes. In 2023,
the total weight of electronic waste recycled and sold in the factoryare 21.95 metric tonnes.

6
TC-HW-440a.1

Description of the
management of risks
associated with the use ofcritical materials

Discussion
and Analysis

AUO establishes the Conﬂict-free Minerals policy according to
the due diligence investigation procedures of the Organization
for Economic Cooperation and Development (OECD), andrequests suppliers to attach importance, fulf ill jointly, andsubmit related documents to regular monitoring to ensure theimplementation of the conﬂict-free mineral policy. In addition,
AUO’s risk identification and supply chain management also
include key material risk management and response.

7
RT-EE-510a.3

Total amount of monetarylosses as a result of legal
proceedings associated with
anticompetitive behavior
regulations8

Quantitative

In 2023, no monetary losses as a result of legal proceedings
associated with anticompetitive behavior regulations.

8
TC-HW-000.A

Number of units produced
by product category

Quantitative

In 2023, Shipment of panels are 20.99 million square meters.
Note: Calculated based on shipments area due to most of productare customized.

Metric tonnes (t),Percentage (%)

2.3.1 Product Quality29

3.4.4 Reuse of Waste

64

Reportingcurrency

1.4.2 Regulation
Compliance

28

Varies by producttype

1.2.1 Financial
Performance

15

N/A

Assurance

Assured by
KPMG

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

TWSE-listed & OTC-listed Companies’ Climate Information

207

AUO TCFD Report

Item

Progress

Chapter in the Report /ResponsePage

1. Describe the board of directors andmanagement’s supervision andgovernance of climate-related risks
and opportunities

AUO places importance on the governance functions of high-level management regarding climate change.
The board of directors, being the highest management and decision-making unit of the company. AUO
includes signiﬁcant decision-making topics related to climate risk in the board of directors’ report, enabling theorganization’s top management to effectively lead the company in dealing with the challenges brought about by
climate change and ensuring legal compliance. The Sustainability and ERM Executive Committee is responsible
for coordinating sustainability development and climate action, including setting and tracking goals, coordinating
resources, and other tasks.

3.1.2 Climate Risk Adaption
AUO TCFD Report74

3.1.2 Climate Risk Adaption
AUO TCFD Report74

3.1.2 Climate Risk Adaption
AUO TCFD Report

74

Business

2. Describe how the identiﬁed climate
risks and opportunities affect thecompany’s business, strategy, andﬁnancials (short-term, medium-term,
long-term).

Risk

Short-term

Organization and supply chain disruption

Mid-term

Regulatory, product standards, and carbon ﬁnancetransformation risksLong-term

Transition to low-carbon products and services, alongwith the necessary infrastructure conditions

Strategy

Risk

Short-term

Preparation for operational resilience required under netzero (SSP1-1.9) and extreme physical (RCP8.5) scenarios,
including SBT and RE100 commitments

Mid-term

Renewable energy and low-carbon technology

Long-term

Implement solutions under transition/physical risk
scenarios

Finance

Risk

Opportunity
Develop green solutions, such as green
manufacturing, green energy, and green
products

Opportunity
Actively negotiate with customers andjointly develop green products
Seize key strategic in the public
sector’s net-zero initiatives and develop
relationships with ecosystem partners

Opportunity

Short-term

The need for internalizing climate external costs

Invest in technologies, tools, and services
required for the industry under low-carbon
transition

Mid-term

The impact of external regulations on operating
costs

Development and creation of high-value
green solutions

Long-term

AUO conducts an inventory of potential climate risks every year and deﬁned 5 risk topics in 2022. In 2023, we beganevaluating and managing risk topics including the impact of carbon fees and tariffs, stability of electricity supply,
green washing or related disputes due to improper disclosure, natural disasters and the insurance market. Listed
below are topics with transformation risks that have a signiﬁcant effect on ﬁnancial impact and business continuity.
3. Describe the impact of extreme
climate events and transition actions
on ﬁnancials● Case 1: The effect of importing countries’ CBAM trade tariffs on products exported by the ICT industry
Financial impact: AUO is asked by customers to absorb CBAM costs and this may increase costs byapproximately 1.23%.
● Case 2: The effect of adjustments to the carbon fee/taxation mechanism in each country
Financial impact: Singapore’s carbon tax for example will cost NTD 7 million to NTD 8 million per year; if carbon
taxes (fees) are imposed by more countries (regions) this will lead to higher costs and fees.
● Case 3: Grid vulnerability due to electricity shortages and rising level of renewables in Taiwan
Financial impact: Based on incidents of voltage drop between 2017 and 2023, total losses at our sites in Taiwan
due to voltage drops amounted to approximately NTD93 million a year.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

208

Item

Progress

Chapter in the Report /ResponsePage

4. Describe how the identiﬁcation,assessment, and management
process of climate risks is integrated
into the overall risk management
system

AUO constructed the foundation for the TCFD operating management f ramework and established a TCFD
working group in 2019. The following year, AUO integrated the TCFD mechanism with the company’s annual risk
identiﬁcation, with supervisors jointly reviewing climate issues related to corporate operations. After categorizationand convergence, the annual key risk issues were generated and incorporated into the annual TCFD risk project
management plan, with the working group coordinating follow-up tracking and management.

3.1.2 Climate Risk Adaption
AUO TCFD Report74

5. If scenario analysis is used to assess
resilience to climate change risks, thescenarios, parameters, assumptions,analytical factors, and main ﬁnancial
impacts should be described

Please refer to the above explanation

3.1.2 Climate Risk Adaption
AUO TCFD Report

74

AUO TCFD Report-

3.2.1 Inventory & Mitigation

80

6. If there are transition plans toaddress the management of climaterelated risks, describe the content of
the plan, as well as the indicators andtargets used to identify and manage
physical risks and transition risks

7. If internal carbon pricing is used asa planning tool, the basis for pricesetting should be explained

The transformation and physical risk scenarios adopted by AUO are based on the most severe situations. Risks are
identiﬁed by substantial impacts and quantiﬁable indicators, focusing on ﬁve categories: personnel, machinery,materials, methodology, and environment.
● Physical risk
A severe climate deterioration RCP 8.5 is used. According to AUO’s analysis, heavy rainfall may cause operational
disruptions due to ﬂooding in low-lying plant areas; uneven rainfall may lead to production disruptions orincreased costs since a large amount of water is required for production activities. Moreover, the instability of thepower grid caused by global warming may also interrupt production activities.
● Transition risk
AUO sets targets based on “Taiwan 2050 Net-Zero Emission Pathways and Strategies”, international climate
regulations, stakeholder expectations, and net-zero commitments.

Since the Paris Agreement took effect in 2016, AUO has begun to implement an internal carbon pricing
mechanism, monetizing the carbon costs derived f rom external climate control policies into internal carbon
prices within the company, and revising them annually in line with the trends of international carbon prices. Thiscan serve as a basis for assessing operational impacts under the TCFD management mechanism. In addition toconsidering international carbon market prices, it also incorporates the influences from policies. In 2023, AUO
announced its internal carbon price as NTD 6,242.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
GrowthItem

5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

Progress

209

Chapter in the Report /Response

Page

3.1.2 Climate Risk Adaption
AUO TCFD Report74

3.2.1 Inventory & Mitigation
Fact Sheet

80
187● Carbon Reduction Goal of 6.5 million tons
In 2018, AUO proposed a carbon reduction goal based on the life cycle, continuously reducing carbon emissions.
As of 2023, the total carbon reduction has reached 10.05 million tons, achieving the original goal ahead ofschedule and surpassing it.
8. If climate-related goals are set,
information on the covered activities,
GHG emission categories, planning
period, and annual progress should
be provided. If carbon offsets orRenewable Energy Certiﬁcates (RECs)
are used to achieve these goals, thesource and quantity of the offset
carbon reductions or the number ofRECs should be speciﬁed● SBT
AUO has committed to our ﬁrst-phase SBTi carbon reduction target (25% absolute reduction by 2025 based on2018) and has achieved it ahead of schedule in 2022. Looking forward to a more proactive low-carbon transition
vision, we continue to propose goals under the 1.5-degree scenario. Using 2021 as the base year, we aim toachieve an absolute carbon reduction of 42% in organizational carbon emissions (Scope 1+2) by 2030. For indirectemissions (Scope 3), we propose a goal that is in line with the WB2C (Well Below 2°C), which is a 25% absolutecarbon reduction target.

9. GHG inventory and veriﬁcation
situation

AUO conducted a GHG inventory in 2023 following the ISO 14064-1:2018 standard, and the process was veriﬁed by athird party.

Inventory & Veriﬁcation
AUO qualif ies as a “company with acapital of more than NTD 10 billion
dollars”, and in line with the TWSE
sustainable development roadmap
for listed companies, we disclose the“parent company’s individual inventory”
and the “parent company’s individual
veriﬁcation”.

● RE100
AUO pledges to achieve 30% usage of renewable energy by 2030, and 100% usage by 2050. As of 2023, a contract
for 18.39MW solar installations has been signed. According to the contract terms, electricity will be graduallyconnected to the grid, and in 2023, a total of 13.71 million KWh of green electricity will be used. In addition, in
2023, sites in China will independently produce and use 56.04 million KWh of green electricity and purchase 3,000
KWh of green electricity certiﬁcates. Overall, AUO’s total green electricity usage for 2023 was nearly 100 million
KWh, an RE ratio of 2.2%.

Scope 1

Emissions(tCO2e)Intensity(tCO2e/NTD 1,000)

AUO

66,809.19

0.0002707

AUO Crystal

116.570.0000242

Total

66,925.76-

Scope 2Emissions(tCO2e)Intensity(tCO2e/NTD 1,000)

AUO

2,361,055.73

0.0095670

AUO Crystal

37,030.47

0.0076908

Total

2,398,086.20-

Scope 3Emissions(tCO2e)Intensity(tCO2e/NTD 1,000)

AUO

2,170,554.18

0.0087535

Veriﬁcation Agency

Description

DNV

Veriﬁcation by the inspection
agency licensed by theEnvironmental Protection
Agency. Please see thestatement in the Appendix.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report210

ISO 26000 Comparison Table
Topic
Governance
Organization

Human
RightsLabor
Practices

Environment

Chapter in the Report /Response

Page

Decision and implementation system forexecution of objectives

1.3 Governance
Organization

18

Compliance audit

4.1 Human Rights
Protection

114

Risk situation of human rights

4.1 Human Rights
Protection

114

Complicit relationship prevention direct, interested and implied complicit
relationships

1.3 Governance
Organization
1.4.1 Integrity Culture

Resolve labor complaints

4.1 Human Rights
Protection

Discriminated and disadvantaged groups

4.1 Human Rights
Protection
4.2.2 Diversity & Inclusion
4.2.3 Remuneration &Beneﬁts

Topic

Fair
Operation
Practices

18
25
114
114
122
125

Citizen and political rights

4.1 Human Rights
Protection

Economic society and culture rights

4.2.2 Diversity & Inclusion
4.2.3 Remuneration &Beneﬁts

Basic rights of working

4.1 Human Rights
Protection

114

Employment and employment
relationship4.2.3 Remuneration &Beneﬁts

125

Working criteria and social protection

4.2.3 Remuneration &Beneﬁts

125

Social dialogue

4.2.4 Enjoyable Workplace
4.4.2 Safe Workplace

127
139

Work health and safety

4.4 Health & Safety

137

Personnel development and training

4.3 Talent Development

130

Pollution prevention

3.4.2 Wastewater
Management
3.4.3 Air Pollution
Management
3.4.4 Reuse of Waste

102

Sustainable resource utilization

3.4 Circular & Clean
Production

97

Lessening and adapting to climate change

3.1 Climate Action

72

Protection and restoration of the naturalenvironment

3.5 Biodiversity

104

114
122
125

101

103

ConsumerIssues

Chapter in the Report /Response

Page

Anti-corruption

1.4 Business Integrity

25

Responsible political participation

There were no politicalevent participation in thereporting year.

-

Fair competition

1.4 Business Integrity

25

Promote social responsibility of inﬂuential
groups

1.1 Company Proﬁle
2.4 Responsible Supply
Chain

11
63

Respect intellectual property rights

5.1.1 Intellectual Property

152

Fair marketing, information and contract
practices

1.4 Business Integrity

25

Protect health and safety of consumers

2.3.1 Product Quality

57

Sustainable consumption

2.3.2 Customer Service
Ch3 Environmental
Sustainability
5.1.3 Sustainable Products

60
69
156

Consumer service, support, complaint anddispute resolution

2.3 Customer Relations

57

Consumer data protection and privacy

1.5.3 Information Security& Privacy Protection

33

Provide necessary services

2.3 Customer Relations

57

Education and awareness2.3.1 Product Quality

57

Community participation

4.5 Social Engagement

142

Education and culture

4.5.2 Charity Care
4.5.4 Popular Science &Environment Education

143
146

4.2.1 Talent Distribution
4.3 Talent Development

119
130

3.4.1 Circular Economy
Performance
5.1 Innovative R&D

97

Create job opportunities and technological
Socialdevelopment
Participation
Development
Technology development

149

Create Wealth and Income

4.5.2 Charity Care

15

Health

4.5.2 Charity Care

137

Social investments

4.5 Social Engagement

142

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

UN Global Compact Comparison Table
Category

Principle

Chapter in the Report / Response

Page

Businesses should support and respect the protection of internationally proclaimed human rights

4.1 Human Rights Protection

114

Make sure that they are not complicit in human rights abuses

4.1 Human Rights Protection

114

Businesses should uphold the freedom of association and the effective recognition of the right to collective
bargaining

4.1 Human Rights Protection

114

The elimination of all forms of forced and compulsory labor

4.1 Human Rights Protection

114

The effective abolition of child labor

4.1 Human Rights Protection

114

The elimination of discrimination in respect of employment and occupation

4.1 Human Rights Protection

114

Businesses should support a precautionary approach to environmental challenges

Ch3 Environmental Sustainability

69

Undertake initiatives to promote greater environmental responsibility

Ch3 Environmental Sustainability

69

Encourage the development and diffusion of environmentally friendly technologies

5.1 Innovative R&D

152

Businesses should work against corruption in all its forms, including extortion and bribery

1.4 Business Integrity

25

Human Rights

Labor

Environment

Anti-Corruption

211

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

212

2022 Sustainability Report Corrigenda
Chapter

Page

Correct
The material topic “Technological Innovation and Market Layout” misses a critical issue, and three objectives are set for this issue.

Material Issue

Item
Customersatisfaction
rating2.3.1 Monitoring andresponding to material
issuesFact Sheet-AUO Crystal

42

146

Product quality
management, customer
satisfaction operations, andprotection of conﬁdential
information

2023

2024

Management Approach

Responsible Unit

91%

92%

T h r o u g h c u s to m e r r a t i n g s i m p l e m e n t a t i o n , w h i c hincludes delivery time, service, innovation, quality, and theintroduction of new products, a certain level of customer
satisfaction is maintained.

Sustainablebusiness
sub-committee

Implementing customer commitments, protecting thesecurity of customer conﬁdential data.

Cybersecurity
incidents
impactingoperations

0 case0 caseCybersecurity
maturity>85
points>85
pointsIn response to external network attack threats, ensure thelayered defense of the information system environment andstrengthen the resilience of the information system.
Implement the environmental control of the Information
Security Management System (ISMS), and continuously
maintain the validity of external certiﬁcation.

Information
Security
Committee

Information
Security
Committee

Data relating to water resource usage & extraction from water stress areas, disclosure of efﬂuent, and water pollutant discharge volumes, were erroneously
cited in 'thousands of cubic meters' - the correct unit is 'cubic meters'.

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Fact
Sheet

Subsidiary

Appendix2023 AUO Sustainability Report

ISO 14064 Veriﬁcation Statement

Verification Opinion No.:
C665845-2023-AG-TWN-DNVIssued Place:
TaipeiIssued Date:
26 June, 2024

Supplement to Verification Opinion
Verification Opinion No.:
C665845-2023-AG-TWN-DNVIssued Place:
TaipeiIssued Date:
26 June, 2024

This is to verify initiate reporting of Greenhouse Gas Inventory Management Report (202 3)of

AUO Corporation
Scope of Verification
DNV Business Assurance (DNV) has been commissioned by AUO Corporation (‘the Organization’)to perform a verification of the greenhouse gas statements of Greenhouse Gas Inventory
Management Report (2023) (hereafter the “Inventory Report”) with respect to the sites listed
in Appendix A.
The Reporting Boundary for the verification including direct GHG emissions and removals,
indirect GHG emissions from imported energy, indirect GHG emissions from transportation,
indirect GHG emissions from products used by the Organization and indirect GHG emissions
associated with the use of products from the Organization. The further descriptions for theReporting Boundary listed in Appendix B.
Verification Criteria and GHG Programme
The verification was performed on the basis of ISO 14064-1:2018 as well as criteria given toprovide for consistent GHG emission identification, calculation, monitoring and reporting.
The verification was conducted in accordance with ISO 14066:2011, ISO 14065:2020,
ISO14064-3:2019Verification Opinion
It is DNV’s opinion that the Inventory Report (2023), which was published on May 23, 2024
is free from material discrepancies in accordance with the verification criteria identified asstated above. The opinion is decided based on the following approaches,− For the Direct (Category 1) and Indirect GHG emissions from imported energy(Category 2), the reliability of the information within the Inventory Report (202 3)
were verified with reasonable level of assurance.
− For the other indirect GHG emissions, the involved information was verified and tested
using agreed-upon procedures, AUP, defined in Inventory Report.
Also, the GHG information as stated in Appendix C has been verified during the process.

Sophia Kim

For the issuing office:

GHG Verifier

DNV Business Assurance Co., Ltd.
29Fl., No. 293, Sec. 2, Wenhua Rd.,
Banqiao District, New Taipei City
220, Taiwan

Place and date:
Taipei, 26 June, 2024______________________________________________________________________________

Management Representative

Process and Methodology
The reviews of the Inventory Report and relevant documents, and the subsequent follow-up
interviews have provided DNV with sufficient evidence to determine the fulfilment of statedcriteria.
Quantification of Greenhouse Gas Emission
The Inventory Report covering the period 1 January, 2023 to 31 December, 2023, it is DNV’sopinion that GHG emissions and removals identified within the Reporting Boundary has been
included in the Inventory Report as claimed in accordance with the verification criteria
identified as stated above, and results in quantification of GHG emissions that are real,transparent and measurable.
Organizational Boundary of Verification☐Financial Control ☒Operational Control ☐Equity Share
GHGs Verified☒CO2 ☒CH4 ☒N2O ☒HFCS ☒PFCS ☒SF6 ☒NF3
The Quantification of GHG emissions:Category

Emission(ton CO2e)

Category 1

Direct GHG emissions and removals

Category 2

Indirect GHG emissions from imported energy

2,361,055.73

66,809.19

Category 3

Indirect GHG emissions from transportation

679,742.71

Upstream transportation and distribution

639,882.00

Business travel

978.92

Employee commuting

13,342.18

Downstream transportation and distribution
Category 4

Indirect GHG emissions from products used by anorganization

25,539.61
1,438,790.89

Purchased goods and services

825,778.96

Purchased capital goods

163,597.90

Fuel-and-energy-related activities (not included in Scope
1 or 2)
Waste generated in operations
Category 5

447,726.93
1,687.10

indirect GHG emissions associated with the use of
products from the Organization

52,020.58

Downstream leased assets

14,873.54

Investments

37,147.04**The Imported Energy Indirect Emissions was calculated based on 2023 electricity emission factor of 0.494 kg CO2e/kwh
in Taiwan, which was announced by Energy Administration, Ministry of Economic Affairs. Additionally, an electricity emission
factor of 0.5703 kg CO2e/kwh was used in China and 0.417 kg CO2e/kWh used in Singapore, as announced by the Ministryof Ecology and Environment of the People's Republic of China and Singapore National Statistical Yearbook. The Global
Warming Potential (GWP) defined in IPCC AR5 (2013) has been chosen and correctly referred by the Organization.
** Accumulated 13,702.57 Mwh renewable energy, solar power, was purchased and used in Taiwan and 56,005.74 Mwh
used in China during 2023.
** Another 30,000 Mwh Green Electricity Certificate Purchased in China.

Verification Opinion☒ unmodified ☐ modified ☐ adverse

Lack of fulfilment of conditions as set out in the Certification Agreement may render this Certificate invalid. This Verification Opinion is based on the information made available to us and the engagement

Lack of fulfilment of conditions as set out in the Certification Agreement may render this Certificate invalid. This Verifica tion Opinion is based on the information made available to us and the engagement

conditions detailed above. Hence, DNV cannot guarantee the accuracy or correctness of the information. DNV cannot be held liable by any party relying or acting upon this Verification Opinion.

conditions detailed above. Hence, DNV cannot guarantee the accuracy or correctness of the information. DNV cannot be held liable by any party relying or acting upon this Verification Opinion.

DNV Business Assurance Co., Ltd. 29Fl., No.293, Sec.2, Wenhua Road 220 Ban Chiau Dist., New Taipei City Taiwan TEL : +886-2-82537800, website: https://www.dnv.com/tw/

DNV Business Assurance Co., Ltd. 29Fl., No.293, Sec.2, Wenhua Road 220 Ban Chiau Dist., New Taipei City Taiwan TEL : +886-2-82537800, website: https://www.dnv.com/tw/

DNV ZNATW-OP-F50, Rev.12, 2024-4

DNV ZNATW-OP-F50, Rev.12, 2024-4

213

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

ISO 14064 Veriﬁcation Statement

Appendix to Verification Opinion No. C665845-2023-AG-TWN-DNV

The scope of indirect emissions, other than Imported Energy with specified/limited list of sources, was defined by AUO’s
own pre-determined criteria for significance of indirect emissions, considering the intended use of the GHG inventory:

APENDIX A
Site

AUHC

AULT
AULK
AUHY
AUTC

AUHL
AUTN
AUKH
AUSZ
AUXM
AUKS
AUST
AUSK
AUSH

APENDIX B

FabAddress

Headquarters/ No. 1, Li-Hsin Rd. 2, Hsinchu Science Park,
L3B
Hsinchu, Taiwan, R.O.C.
Global Research No. 1, Gongye E. 3rd Rd., Hsinchu City,
CenterTaiwan (R.O.C.)
No. 23, Li-Hsin Rd., Hsinchu Science Park,
L3C
Hsinchu, Taiwan, R.O.C.
Mabuville at Beipu Township, Hsinchu
Dormitory
County, Taiwan, R.O.C
No. 1, Xinhe Rd., Aspire Park, Lungtan,
L4A/L5A/L5B
Taoyuan, Taiwan, R.O.C.
No. 228, Lungke St., Lungtan, Taoyuan,
Taiwan, R.O.C. / No. 288, No. 338, No. 338L6B
1, Lungyuan Rd. 1, Lungtan, Taoyuan, Taiwan,
R.O.C.
No. 189, Hwaya Rd. 2, Kueishan, Taoyuan,
L3D/L5D
Taiwan, R.O.C.
No. 1, JhongKe Rd., Central Taiwan Science
L5C/L6A/L7A/ Park, Taichung, Taiwan, R.O.C. / No. 2, No. 3,
L7B/L8A
Keya Rd., Central Taiwan Science Park,
Taichung, Taiwan, R.O.C.
No. 1, Machang Rd., Houli Dist., Taichung
L8B
City, Taiwan, R.O.C.
No. 300, Machang Rd., Houli Dist., TaichungDormitory
City, Taiwan, R.O.C.
No.36, Keji 1st Rd., Annan Dist., Tainan City,
C4A/C5D/C6C
Taiwan, R.O.C.
No.9, Luke 3rd Rd., Luzhu Dist., Kaohsiung
C6D
City, Taiwan, R.O.C.
No. 398, Suhong Zhong Road, Suzhou
S01/S02/S06
Industrial Park, 215021, China
No. 1689, Xiang An North Road, Xiang An
S11/S13/S17 Branch, Torch Hi-tech Industrial Development
Zone, Xiamen, 361102, China
No. 6, Longteng Rd., Kunshan EconomicL6K
Technological Development Area, China
No. 10, Tampines Industrial Avenue 3,
L4B
Singapore 528798
Bratislavska 517, 911 05 Trencin , Slovak
E11/E12
Republic
No. 6, Longteng Rd., Kunshan Economic &Kunshan office Technical Development Zone, Kunshan City
215300, China

Total Energy
Total
Total Direct
Indirect
Emissions
Emissions
Emissions(Tonnes CO2- (Tonnes CO2(Tonnes CO2e)e)e)10,935.82
1,634.56
33,584.91

637.3674.44
944.66

Category
Indirect GHG emissions fromtransportation

Subcategory
Upstream transportation anddistribution
Business travel
Employee commuting

10,298.46
1560.1147
32640.2472
Indirect GHG emissions fromproducts used by organization

Downstream transportationand distribution
Purchased goods andservices

1,247.80

289.29958.5082

180,293.47

8,159.33

172,134.14

Purchased capital goods

240,665.02

7,562.68

233,102.34

Fuel-and-energy-related
activities (not included in
Scope 1 or 2)
Waste generated inoperations

237,991.24

7,307.54

230,683.71

866,944.23

19,097.41

847,846.82

351,172.17

6,771.42

344,400.75

1,677.17

145.16

1,532.01

24,578.64

217.7124360.9273

26,196.55

143.4526053.0947

82,312.35

2,608.20

79,704.15

59,592.72

1,931.96

57,660.76

238,625.76

8,135.39

230,490.37

70,232.87

2,691.61

67,541.26

134.8091.578643.2224

44.85

0

44.85

Lack of fulfilment of conditions as set out in the Certification Agreement may render this Certificate invalid. This Verification Opinion is based on the information made available to us and the engagement

Indirect GHG emissions
associated with the use of
products from the organization

Downstream leased assets
Investments (subsidiary)

Boundary
Transportation emissions for the procurement of main materials,
such as glass substrate、PI spacer、target、gaseous
chemical…etc.
Transportation of employees for business-related activities
Transportation of employees travelling between company andresidence place, factory shuttle bus included(employees located at Mainland and overseas plants were notincluded)Transportation of products sold by the Company
Upstream (cradle-to-gate) emissions of selected purchased goods,
such as glass substrate, metal backplane, liquid crystals, photoresist,developer, etchant, Array stripper and thinner…etc
Upstream (cradle-to-gate) emissions of purchased capital goods
Upstream emissions of purchased fuels (Diesel Oil, Liquefied
Petroleum Gases, Motor Gasoline and Natural Gas) and electricity
Transportation and disposal or treatment of waste(waste generated in Mainland and overseas plants were notincluded)
The scope 1 and scope 2 emissions of lessees that occur during
operation of leased assets: BenQ Materials
100% owned and engaged in manufacturing：AUO Crystal Corp.

APPENDIX C

The fluorinated greenhouse gases emissions with implementing abatement equipment, according to the Tier 2c methodreferred to 2019 IPCC Guidelines for National Greenhouse Gas Inventories Volume 3 Industrial Processes and ProductUse, Chapter 6 Electronics Industry Emissions.
Fluorinated greenhouse gases

PFCs, SF6, HFCs, NF3

Fluorinated GHG emissions

Reduced Fluorinated GHG

Fluorinated GHG emissions iffrom manufacturing

emissions by abatement system

without abatement system(ton CO2e)(ton CO2e)(ton CO2e)8,918.76

1,633,253.73

1,642,172.49**Fluorinated GHG emissions reduction rate by abatement system:
Reduced Fluorinated GHG emissions / Fluorinated GHG emissions if without abatement system= 99.46%

Lack of fulfilment of conditions as set out in the Certification Agreement may render this Certificate invalid. This Verification Opinion is based on the information made available to us and the engagement

conditions detailed above. Hence, DNV cannot guarantee the accuracy or correctness of the information. DNV cannot be held liable by any party relying or acting upon this Verification Opinion.

conditions detailed above. Hence, DNV cannot guarantee the accuracy or correctness of the information. DNV cannot be held liable by any party relying or acting upon this Verification Opinion.

DNV Business Assurance Co., Ltd. 29Fl., No.293, Sec.2, Wenhua Road 220 Ban Chiau Dist., New Taipei City Taiwan TEL : +886-2-82537800, website: https://www.dnv.com/tw/

DNV Business Assurance Co., Ltd. 29Fl., No.293, Sec.2, Wenhua Road 220 Ban Chiau Dist., New Taipei City Taiwan TEL : +886-2-82537800, website: https://www.dnv.com/tw/

DNV ZNATW-OP-F50, Rev.12, 2024-4

DNV ZNATW-OP-F50, Rev.12, 2024-4

214

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

ISAE 3000 Assurance Statement
Summary of Work Performed

KPMG

台 北 市 110615信 義 路 5段 7號 68樓 (台 北 101大 樓 )68F., TAIPEI 101 TOWER, No. 7, Sec. 5,
Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話
傳真
網址

Tel
+886 2 8101 6666
Fax +886 2 8101 6667
Web kpmg.com/tw

Independent Limited Assurance Report
To AU Optronics Corp.:
We have been engaged by AU Optronics Corp. (‘AUO’) to provide limited assurance over the
Sustainability Report (“the Report” or “the Subject Matter Information”) of the Company for the year
ended December 31, 2023.
Applicable Criteria of the Subject Matter Information
AUO shall prepare the Subject Matter Information in accordance with the Global Reporting Initiative
Standards (“GRI Standards”) issued by Global Sustainability Standards Board (“GSSB”).
Management’s Responsibilities
AUO is responsible for determining its objectives with respect to sustainable development performanceand reporting, including the identification of stakeholders and material aspects, and using the applicable
criteria to fairly prepare and present the Subject Matter Information. The Company is also responsible
for establishing and maintaining internal controls relevant to the preparation and presentation of Subject
Matter Information that is free from material misstatement, whether due to fraud or error.

As stated in Applicable Criteria of the Subject Matter Information paragraph, our main work on theselected information included:● Reading the Report of AUO;
● Inquiries of responsible management level and non-management level personnel to understand theoperational processes and information systems used to collect and process the Subject Matter
Information;● On the basis of the understanding obtained mentioned above, perform analytical procedures on the
Subject Matter Information and if necessary, inspect related documents to gather sufficient andappropriate evidence in a limited assurance engagement.
The work described above based on professional judgment and consideration of the level of assurance
and our assessment of the risk of material misstatement of the Subject Matter Information, whether due
to fraud or error. We believe that the work performed and evidence we have obtained are sufficient andappropriate to provide a basis of our conclusion. However, the work performed in a limited assurance
engagement varies in nature and timing from, and is less in extent than for, a reasonable assurance
engagement. Consequently, the level of assurance obtained in a limited assurance engagement issubstantially lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed.
Inherent limitations
The Report for the year ended December 31, 2023 includes the disclosures of non-financial informationthat involved significant judgments, assumptions and interpretations by the management of AUO.
Therefore, the different stakeholders may have different interpretations of such information.

Our Responsibilities

Emphasis of Matter

We performed our work in accordance with International Standard on Assurance Engagements (ISAE)
3000: “Assurance Engagements other than Audits or Reviews of Historical Financial
Information“ issued by the International Auditing and Assurance Standards Board and to issue a limited
assurance report on whether the Subject Matter Information is free from material misstatement. Also,
we have considered appropriate limited assurance procedures according to the understanding of relevantinternal controls in the circumstances, but not for the purposes of expressing a conclusion as to theeffectiveness of the internal control over the design or implementation of the Report.

Subject Matter Information includes and covers materiality assessment process, as well as the economic,
environmental, and social KPIs within the scope of this report.

However, the Report section on any related data concerning Greenhouse Gas Emissions (Scope 1, 2
and 3) and Perfluorocarbons (PFCs) emissions, of which the disclosures will be verified (and modified,if necessary) independently by a third party verification company. Consequently, this assurance
engagement will not express any conclusion on any related data regarding Greenhouse Gas Emissions(Scope 1, 2 and 3) and Perfluorocarbons (PFCs) emissions.
Independence and Standards on Quality Management
We have complied with the independence and other ethical requirements of the Code of Professional
Ethics for Certified Public Accountant in the Republic of China, which is founded on the fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality, andprofessional behavior. In addition, we applied Standards on Quality Management. Accordingly, we
maintained a comprehensive system of quality management, including documented policies andprocedures regarding compliance with ethical requirements and professional standards as well as
applicable legal and regulatory requirements.

Conclusion
Based on the work we have performed and the evidence we have obtained, nothing has come to ourattention that causes us to believe that the Subject Matter Information has not been properly prepared,in all material aspects, in accordance with the Applicable Criteria.
Other Matters
We shall not be responsible for conducting any further assurance work for any change of the subject
matter information or the applicable criteria applied after the issuance date of this report.
The engagement partners on the assurance resulting in this independent auditors’ report is Yu, ChiLung.
KPMG
Taipei, Taiwan (Republic of China)
Jun 27, 2024
Notes to readers
The limited assurance report is the English translation of the Chinese version prepared and used in the Republic of China. If
there is any conflict between, or any difference in the interpretation of, the English and Chinese language limited assurance
report, the Chinese version shall prevail.

215

CONTENTS

1 Business
Operation

2 Sustainable
Management

3 Environmental
Sustainability

4 Inclusive
Growth5 AgileInnovation

Subsidiary

Fact
Sheet

Appendix2023 AUO Sustainability Report

SASB Assurance Statement

Summary of Work Performed

KPMG

台 北 市 110615信 義 路 5段 7號 68樓 (台 北 101大 樓 )68F., TAIPEI 101 TOWER, No. 7, Sec. 5,
Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話
傳真
網址

Tel
+886 2 8101 6666
Fax +886 2 8101 6667
Web kpmg.com/tw

Independent Limited Assurance Report
To AU Optronics Corp.:
We have been engaged by AU Optronics Corp. (‘AUO’) to provide limited assurance over the
Sustainability Report (“the Report” or “the Subject Matter Information”) of the Company for the year
ended December 31, 2023.
Applicable Criteria of the Subject Matter Information
AUO shall prepare Subject Matter Information in accordance with the Sustainability AccountingStandards for Hardware issued by Sustainability Accounting Standards Board ("SASB").
Management’s Responsibilities
AUO is responsible for determining its objectives with respect to sustainable development performanceand reporting, including the identification of stakeholders and material aspects, and using the applicable
criteria to fairly prepare and present the information included in the Report. AUO is also responsible
for establishing and maintaining internal controls relevant to the preparation and presentation of theReport that is free from material misstatement, whether due to fraud or error.
Our Responsibilities
We conducted our engagement in accordance with International Standard on Assurance Engagements(ISAE) 3000: “Assurance Engagements other than Audits or Reviews of Historical Financial
Information” issued by the International Auditing and Assurance Standards Board and to issue a limited
assurance report on whether the Subject Matter Information is free from material misstatement. Also,
we have considered appropriate limited assurance procedures according to the understanding of relevantinternal controls in the circumstances, but not for the purposes of expressing a conclusion as to theeffectiveness of the internal control over the design or implementation of the Report.

As stated in Applicable Criteria of the Subject Matter Information paragraph, our main work on theselected information included:● Reading the Report of AUO;
● Inquiries of responsible management level and non-management level personnel to understand theoperational processes and information systems used to collect and process the Subject Matter
Information;● On the basis of the understanding obtained mentioned above, perform analytical procedures on the
Subject Matter Information and if necessary, inspect related documents to gather sufficient andappropriate evidence in a limited assurance engagement.
The work described above based on professional judgment and consideration of the level of assurance
and our assessment of the risk of material misstatement of the Subject Matter Information, whether due
to fraud or error. We believe that the work performed and evidence we have obtained are sufficient andappropriate to provide a basis of our conclusion. However, the work performed in a limited assurance
engagement varies in nature and timing from, and is less in extent than for, a reasonable assurance
engagement. Consequently, the level of assurance obtained in a limited assurance engagement issubstantially lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed.
Inherent limitations
The Report for the year ended December 31, 2023 includes the disclosures of non-financial informationthat involved significant judgments, assumptions and interpretations by the management of AUO.
Therefore, the different stakeholders may have different interpretations of such information.
Conclusion
Based on the work we have performed and the evidence we have obtained, nothing has come to ourattention that causes us to believe that the Subject Matter Information has not been properly prepared,in all material aspects, in accordance with the Applicable Criteria.
Other Matters
We shall not be responsible for conducting any further assurance work for any change of the subject
matter information or the applicable criteria applied after the issuance date of this report.

Independence and Standards on Quality Management
We have complied with the independence and other ethical requirements of the Code of Professional
Ethics for Certified Public Accountant in the Republic of China, which is founded on the fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality, andprofessional behavior. In addition, we applied Standards on Quality Management. Accordingly, we
maintained a comprehensive system of quality management, including documented policies andprocedures regarding compliance with ethical requirements and professional standards as well as
applicable legal and regulatory requirements.

The engagement partners on the assurance resulting in this independent auditors’ report is Yu, ChiLung.
KPMG
Taipei, Taiwan (Republic of China)
Jun 27, 2024
Notes to readers
The limited assurance report is the English translation of the Chinese version prepared and used in the Republic of China. If
there is any conflict between, or any difference in the interpretation of, the English and Chinese language limited assurance
report, the Chinese version shall prevail.

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